1.1 	A bill for an act
1.2 	relating to government operations; appropriating money for sale of state lands 
1.3 	revolving loan fund, Office of Enterprise Technology, Veterans Affairs, the 
1.4 	state's bankruptcy counsel, the investment board, and the legislature; regulating 
1.5 	state and local government operations; proposing a constitutional amendment for 
1.6 	senate elections; limiting elected official per diems; establishing legislature and 
1.7 	governor forfeiture of salary under certain circumstances; modifying provisions 
1.8 	related to the legislature, Indian Affairs Council, investigation by the state 
1.9 	auditor, political subdivisions, special districts, attorney general, and governor; 
1.10 	establishing accounts for postemployment benefits; authorizing state land sales; 
1.11 	providing for expenses of a governor-elect; ratifying certain labor agreements 
1.12 	and compensation plans; providing for continuing appropriations in certain 
1.13 	circumstances; changing certain gambling provisions; regulating elections and 
1.14 	campaign finance; modifying provisions related to the military and veterans; 
1.15 	requiring unpaid leave for family members of military personnel in certain 
1.16 	circumstances; providing that ownership of property is not a factor for certain 
1.17 	permit, nonconforming use, or sale purposes; modifying municipal boundary 
1.18 	adjustment provisions; providing for amendment of certain rules adopted by 
1.19 	the secretary of state and making them permanent; authorizing rulemaking;
1.20 	amending Minnesota Statutes 2004, sections 3.012; 3.099, subdivision 1; 3.101; 
1.21 	3.971, subdivision 6; 6.47; 6.51; 6.54; 6.55; 6.551; 6.57; 6.59; 6.60; 6.62, 
1.22 	subdivision 2; 6.63; 6.64; 6.65; 6.66; 6.67; 6.68; 6.70; 6.71; 6.76; 8.01; 10A.01, 
1.23 	by adding a subdivision; 10A.02, subdivision 5; 10A.14, subdivision 1; 10A.15, 
1.24 	subdivision 5; 10A.20, by adding subdivisions; 10A.25, subdivisions 2, 10; 
1.25 	10A.27, subdivision 2; 10A.273, subdivisions 1, 2; 10A.322, subdivisions 1, 
1.26 	4; 11A.07, subdivision 5; 15.0575, subdivision 3; 15.059, subdivisions 3, 5; 
1.27 	15.066, subdivision 2; 16A.065; 16A.11, subdivision 3; 16A.1283; 16A.86, by 
1.28 	adding a subdivision; 16C.02, subdivisions 4, 12, 14, by adding subdivisions; 
1.29 	16C.03, subdivisions 3, 4, 8, 13, 16; 16C.04, subdivisions 1, 2; 16C.05, 
1.30 	subdivisions 1, 2, 5; 16C.08, subdivision 2, by adding a subdivision; 16C.16, 
1.31 	by adding a subdivision; 43A.17, subdivision 4; 43A.316, subdivisions 1, 2, 
1.32 	3, 4, 5, 6, 7, 8, 10, by adding subdivisions; 85.053, by adding a subdivision; 
1.33 	103D.355; 123B.63, subdivision 3; 126C.17, subdivision 11; 147.02, by adding a 
1.34 	subdivision; 190.055; 204B.14, subdivision 5; 204B.16, subdivision 3; 204B.40; 
1.35 	205.10, subdivision 3; 205A.05, subdivision 1; 205A.11, subdivision 2; 211B.04; 
1.36 	211B.11, subdivision 1; 211B.15, subdivision 1; 240.25, subdivision 8; 270B.14, 
1.37 	by adding a subdivision; 326.56; 349.211, subdivision 2a; 349.2127, subdivision 
1.38 	8; 349A.12, subdivisions 1, 2, 5; 373.40, subdivision 2; 375.101, subdivision 
2.1 	1, by adding a subdivision; 375.171; 375.20; 394.36, by adding a subdivision; 
2.2 	412.02, subdivision 2a; 414.01, subdivision 1a; 414.02, by adding a subdivision; 
2.3 	414.031, subdivision 4, by adding a subdivision; 414.0325, subdivision 1, by 
2.4 	adding a subdivision; 414.033, subdivisions 2, 12; 414.036; 414.061, subdivision 
2.5 	5; 458.40; 465.82, subdivision 2; 465.84; 469.053, subdivision 5; 469.0724; 
2.6 	469.190, subdivision 5; 471.345, subdivision 16, by adding subdivisions; 
2.7 	471.382; 475.58, subdivisions 1, 1a; 475.59; 609.67, subdivisions 3, 5; 626.88, 
2.8 	subdivision 1; Minnesota Statutes 2005 Supplement, sections 10.60, subdivision 
2.9 	3; 10A.01, subdivision 26; 10A.27, subdivision 1; 10A.31, subdivision 4; 11A.04; 
2.10 	11A.07, subdivision 4; 14.127, subdivisions 1, 3, 4; 16C.064; 16C.09; 16C.10, 
2.11 	subdivision 7; 43A.183; 123B.02, subdivision 23; 157.16, subdivision 3a; 
2.12 	161.1419, subdivision 8; 192.502, by adding subdivisions; 201.061, subdivision 
2.13 	3; 204B.16, subdivision 1; 204C.08, subdivision 1a; 206.56, subdivisions 1b, 
2.14 	3, 7a, 7b, 8; 206.57, subdivision 5; 206.61, subdivision 5; 206.80; 206.805, 
2.15 	subdivision 1; 206.82, subdivision 2; 206.83; 206.90, subdivision 8; 211B.13, 
2.16 	subdivision 1; 349.15, subdivision 1; 349.17, subdivision 7; 462.357, subdivision 
2.17 	1e; 471.661; 475.521, subdivision 2;  Laws 2005, chapter 156, article 1, sections 
2.18 	8; 11, subdivision 5; proposing coding for new law in Minnesota Statutes, 
2.19 	chapters 3; 4; 6; 10A; 15; 15A; 15B; 16A; 16B; 16C; 16E; 123B; 138; 181; 190; 
2.20 	197; 204C; 204D; 206; 211B; 270C; 345; 349; 353; 414; 471; proposing coding 
2.21 	for new law as Minnesota Statutes, chapter 206A; repealing Minnesota Statutes 
2.22 	2004, sections 6.56, subdivision 1; 10A.257, subdivision 1; 10A.273, subdivision 
2.23 	3; 204C.50, subdivisions 3, 4, 5, 6; Minnesota Statutes 2005 Supplement, section 
2.24 	204C.50, subdivisions 1, 2; Laws 2005, chapter 162, section 34, subdivision 7.
2.25 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.26 	ARTICLE 1
2.27 	SUPPLEMENTAL STATE GOVERNMENT APPROPRIATIONS

2.28 	Section 1. SUPPLEMENTAL APPROPRIATIONS.
 2.29 	The appropriations in this act are added to or, if shown in parentheses, subtracted 
2.30 	from the appropriations enacted into law by the legislature in 2005, or other specified law, 
2.31 	to the named agencies and for the specified programs or activities. The sums shown 
2.32 	are appropriated from the general fund, or another named fund, to be available for the 
2.33 	fiscal years indicated; 2006 is the fiscal year ending June 30, 2006, 2007 is the fiscal year 
2.34 	ending June 30, 2007, and the biennium is fiscal years 2006 and 2007. Supplementary 
2.35 	appropriations and reductions to appropriations for the fiscal year ending June 30, 2006, 
2.36 	are effective the day following final enactment.

2.37
2.38	Sec. 2. OFFICE OF ENTERPRISE 
TECHNOLOGY
 		$0
		$1,731,000

2.39	Summary by Fund
	
2.40	General Fund
	0
	1,731,000
	
2.41	TOTAL
	0
	1,731,000
	
3.1 	ENTERPRISE INFORMATION 
3.2 	TECHNOLOGY SECURITY 
3.3 	MANAGEMENT. $1,731,000 in 2007 is to 
3.4 	be used to address comprehensive planning, 
3.5 	implementation, and administration of 
3.6 	enterprise information technology security 
3.7 	according to Minnesota Statutes, sections 
3.8 	16E.01 and 16E.03. This is a onetime 
3.9 	appropriation.

3.10	Sec. 3. FINANCE

3.11	Summary by Fund
	
3.12	General Fund
	0
	325,000
	
3.13 	$325,000 in 2007 is to pay for the cost of the 
3.14 	state's bankruptcy counsel representing the 
3.15 	state in the Northwest Airline's bankruptcy. 
3.16 	This appropriation is available until 
3.17 	expended.

3.18 	Sec. 4. Laws 2005, chapter 156, article 1, section 8, is amended to read:

3.19
3.20	Sec. 8. INVESTMENT BOARD
 		2,167,000
		2,167,000
151,000

3.21 	Sec. 5. Laws 2005, chapter 156, article 1, section 11, subdivision 5, is amended to read:

3.22	Subd. 5.Public Broadcasting
 	
3.23	1,855,000
	1,855,000
	
3.24 	$963,000$1,153,000 the first year and
3.25 	$963,000$1,153,000 the second year are for 
3.26 	matching grants  for public television. The 
3.27 	funding base for this program in fiscal years 
3.28 	2008 and 2009 is $963,000 per year.
4.1 	$398,000 the first year and $398,000  
4.2 	the second year are for public  television 
4.3 	equipment grants.  
4.4 	Equipment or matching grant allocations  
4.5 	shall be made after considering the  
4.6 	recommendations of the Minnesota Public  
4.7 	Television Association.  
4.8 	$17,000 the first year and $17,000 the  second 
4.9 	year are for grants to the Twin  Cities regional 
4.10 	cable channel.  
4.11 	$287,000 the first year and $287,000  the 
4.12 	second year are for community  service grants 
4.13 	to public educational  radio stations.  The 
4.14 	grants must be  allocated after considering 
4.15 	the  recommendations of the Association of  
4.16 	Minnesota Public Educational Radio  Stations 
4.17 	under Minnesota Statutes,  section 129D.14.  
4.18 	$190,000 the first year and $190,000  the 
4.19 	second year are for equipment  grants 
4.20 	to Minnesota Public Radio, Inc.  This 
4.21 	appropriation is contingent on  Minnesota 
4.22 	Public Radio, Inc. making  public a list 
4.23 	containing the position  and salary of each 
4.24 	employee and single  individual providing 
4.25 	personal services  under a contract who is paid 
4.26 	more than  $100,000 per year by Minnesota 
4.27 	Public  Radio, Inc. or a related organization 
4.28 	as defined in Minnesota Statutes,  section 
4.29 	317A.011, subdivision 18.
4.30 	Any unencumbered balance remaining the  
4.31 	first year for grants to public  television or 
4.32 	radio stations does not  cancel and is available 
4.33 	for the second  year.  
4.34 	

5.1	Sec. 6. VETERANS AFFAIRS
 				$3,000,000

5.2	Subdivision 1.State soldiers' assistance fund
 					
5.3 	$2,300,000 is appropriated in fiscal year 2007 
5.4 	from the general fund to the commissioner 
5.5 	of veterans affairs to be deposited in the 
5.6 	state soldiers' assistance fund established 
5.7 	in Minnesota Statutes, section 197.03. The 
5.8 	appropriations in this subdivision are in 
5.9 	addition to other appropriations made to the 
5.10 	commissioner of veterans affairs.

5.11
5.12	Subd. 2. Centralized Web Site for Veterans 
Services
 					
5.13 	$100,000 is appropriated in fiscal year 2007 
5.14 	from the general fund to the commissioner 
5.15 	of veterans affairs to  fund a veterans service 
5.16 	coordinator and a veterans information 
5.17 	officer within  the Department of Veterans 
5.18 	Affairs, whose mission is to create a 
5.19 	centralized Web site containing information 
5.20 	on all state, federal, local, and private 
5.21 	agencies and organizations that provide 
5.22 	goods or services to veterans or their 
5.23 	families. Prior to encumbering funds from 
5.24 	the appropriation in this subdivision, the 
5.25 	commissioner must adhere to the provisions 
5.26 	of Minnesota Statutes, section 16E.03.

5.27
5.28	Subd. 3. County Veterans Service Officers 
Service Enhancement Grants
 					
5.29 	$100,000 is appropriated in fiscal year 2007 
5.30 	from the general fund to the commissioner of 
5.31 	veterans affairs to provide grants to counties 
5.32 	for enhancing the benefits, programs, 
5.33 	and services they provide to veterans. 
6.1 	The commissioner, in consultation with 
6.2 	the County Veterans Service Officers' 
6.3 	Association, shall establish grants based 
6.4 	on objective benchmarks and standards 
6.5 	established by the commissioner. A county 
6.6 	may not reduce its veterans service office 
6.7 	budget by any amount received as a grant 
6.8 	under this section. This grant program is in 
6.9 	addition to grants made under Minnesota 
6.10 	Statutes, section 197.608. This funding may 
6.11 	be utilized to assist counties in consolidating 
6.12 	their county veterans services offices into 
6.13 	bi-county or multicounty service offices.

6.14
6.15	Subd. 4. Higher Education Veterans 
Assistance Offices
 					
6.16 	$500,000 is appropriated in fiscal year 
6.17 	2007 from the general fund for the veterans 
6.18 	assistance offices under Minnesota Statutes, 
6.19 	section 197.585. The  commissioner must, 
6.20 	in consultation with the Office of Higher 
6.21 	Education, determine the most appropriate 
6.22 	method of allocating this appropriation 
6.23 	to align with the needs of the students at 
6.24 	Minnesota State Colleges and Universities, 
6.25 	private colleges, and the University of 
6.26 	Minnesota who are veterans. Methods may 
6.27 	include, but are not limited to, providing 
6.28 	grants for veteran work-study positions and 
6.29 	providing central liaison and coordination 
6.30 	staff from a veteran pool as needed to 
6.31 	enhance the ability of higher education 
6.32 	institutions to be responsive to students 
6.33 	who are veterans. The commissioner shall 
6.34 	designate a liaison who is a veteran to the 
6.35 	University of Minnesota and a liaison who 
7.1 	is a veteran to the private colleges and 
7.2 	universities in Minnesota for the purposes of 
7.3 	Minnesota Statutes, section 197.585.

7.4 	Sec. 7. APPROPRIATION; LEGISLATURE.
 7.5 	$10,000 in fiscal year 2007 is appropriated from the general fund to the Legislative 
7.6 	Coordinating Commission for purposes of the legislators' forum, through which 
7.7 	Minnesota legislators meet with counterparts from South Dakota, North Dakota, and 
7.8 	Manitoba, Canada to discuss issues of mutual concern. This is a onetime appropriation.

7.9 	Sec. 8. LOAN FOR PEIP PROGRAM.
 7.10 	Notwithstanding Minnesota Statutes, section 295.581, the commissioner of 
7.11 	employee relations, in consultation with the labor management committee created in 
7.12 	Minnesota Statutes, section 43A.316, may borrow up to $2,320,000 in fiscal year 2007 
7.13 	or fiscal year 2008 from the health care access fund for onetime administrative costs for 
7.14 	marketing, communication, plan administration, and development of a data warehouse 
7.15 	to support the public employee insurance program. A loan under this section accrues no 
7.16 	interest, and must be repaid by June 30, 2011. The loan must be repaid from reserves 
7.17 	in the public employee insurance program, if the commissioner of employee relations 
7.18 	determines that reserves are sufficient to repay the loan without jeopardizing the financial 
7.19 	status of the program. If the commissioner determines there is not sufficient funding to 
7.20 	repay the loan, the money necessary to repay the loan is appropriated from the general 
7.21 	fund, effective June 30, 2011. This section is effective only if the state prevails in the 
7.22 	appeal of the decision filed December 20, 2005, by the Minnesota District Court, Second 
7.23 	Judicial District, in State v. Philip Morris, Inc.

7.24 	ARTICLE 2
7.25 	GOVERNMENT OPERATIONS

7.26 	Section 1. CONSTITUTIONAL AMENDMENT PROPOSED.
 7.27 	An amendment to the Minnesota Constitution, article IV, section 4, is proposed to 
7.28 	the people.  If the amendment is adopted, the section will read:

7.29 	Sec. 4.  Representatives shall be chosen  for a term of two years, except to fill a vacancy.  
7.30 	Senators  shall be chosen for a term of four years, except to fill a  vacancy, and except as 
7.31 	otherwise required by this article. There shall be an entire new election of all  the senators 
7.32 	at the first election of representatives after each  new legislative apportionment provided 
7.33 	for in this article, and at that election senators elected from odd-numbered districts shall 
8.1 	be elected to two-year terms.  The  governor shall call elections to fill vacancies in either 
8.2 	house  of the legislature.  

8.3 	Sec. 2. SUBMISSION TO VOTERS.
 8.4 	The proposed amendment must be submitted to the people at the 2006 general 
8.5 	election. The question proposed shall be:
8.6 	"Shall the Minnesota Constitution be amended to require that, as near as practical, 
8.7 	one-half of the members of the senate stand for election at each biennial election of 
8.8 	legislators, commencing in 2012?

8.9	Yes .......
	
8.10	No ......."

8.11 	Sec. 3. IMPLEMENTATION.
 8.12 	The Secretary of State shall implement sections 1 and 2 within the appropriation 
8.13 	for fiscal year 2007.

8.14 	Sec. 4. [3.0062] CONFERENCE COMMITTEES.
8.15 		Subdivision 1.Deadline. The rules of each house and joint rules of the legislature 
8.16 	shall be amended to require the establishment of a deadline for the completion of 
8.17 	conference committee work. The deadline for conference committee reports on each 
8.18 	omnibus budget bill to be reported to the floors of both houses must be at least five 
8.19 	calendar days prior to the day of adjournment. This rule may be waived by a two-thirds 
8.20 	vote of each house. Conferees on a bill that fails to meet this deadline must be discharged 
8.21 	and new conferees may be appointed.
8.22 		Subd. 2.Amendment by entire body. The rules of each house and joint rules of the 
8.23 	legislature shall be written to allow conference committees to be discharged by a majority 
8.24 	vote of either body at any time.  Bills failing to meet the deadlines specified in subdivision 
8.25 	1 shall also be returned to the floor of each house.  The rules for each house and the joint 
8.26 	rules of the legislature shall allow for bills that have been returned from conference to be 
8.27 	amended and re-passed multiple times, in order to resolve differences between the House 
8.28 	and Senate without appointment of a further conference committee.

8.29 	Sec. 5. [3.0115] LEGISLATIVE SESSION IN EVEN-NUMBERED YEAR.
8.30 	A regular legislative session in an even-numbered year may not begin until the first 
8.31 	Monday after the day established in law for conduct of precinct caucuses.

9.1 	Sec. 6. Minnesota Statutes 2004, section 3.012, is amended to read:
9.2 	3.012 LEGISLATIVE DAY.
9.3 	A legislative day is a day when either house of the legislature is called to order or 
9.4 	when a standing committee of either house of the legislature meets. A legislative day 
9.5 	begins at seven o'clock a.m. and continues until seven o'clock a.m. of the following 
9.6 	calendar day.

9.7 	Sec. 7. [3.052] SCHEDULE FOR CONSIDERATION OF LEGISLATION.
9.8 		Subdivision 1.Agency bills.  An executive department or agency intending to urge 
9.9 	the legislature to adopt a bill shall deliver the bill to the revisor of statutes by November 1 
9.10 	before the regular session at which adoption will be urged.  This deadline does not apply: 
9.11 	(1) to bills necessary to implement the governor's budget proposals;  (2) to other bills that 
9.12 	are initiatives of the governor, as opposed to administrative initiatives of a department or 
9.13 	agency; or (3) as otherwise provided in section 3C.035.
9.14 		Subd. 2. Resolution for structure of budget bills.  By January 15 of each 
9.15 	odd-numbered year, the legislature must adopt a concurrent resolution designating the 
9.16 	major budget bills to be considered that legislative session, and allocating all state 
9.17 	programs and budget accounts for consideration in one of the major budget bills.
9.18 		Subd. 3. Deadline resolution.  By January 31 of each odd-numbered year, the 
9.19 	legislature must adopt a concurrent resolution establishing deadlines for committee 
9.20 	consideration of policy and budget bills.
9.21 		Subd. 4. State of the State.  The governor is encouraged to submit a State of the 
9.22 	State address in January of each odd-numbered year and within the first ten days after the 
9.23 	start of the legislative session in an even-numbered year.  Before or during this address, the 
9.24 	governor is encouraged to announce major legislative policy initiatives that the governor 
9.25 	intends to promote that year.
9.26 		Subd. 5. Executive submission of budget bills.  The governor must submit bills 
9.27 	necessary to implement the governor's operating budget to the legislature within ten 
9.28 	days after the date specified in section 16A.11 for the governor to submit the detailed 
9.29 	operating budget to the legislature. The bills must be provided to the speaker of the house 
9.30 	of representatives and the majority leader of the senate in a manner ready for formal 
9.31 	introduction and final consideration.
9.32 		Subd. 6. Price of government resolution.  By March 15 of each odd-numbered 
9.33 	year, the legislature must adopt the price of government resolution required by section 
9.34 	16A.102, subdivision 2.
10.1 		Subd. 7. Individual budget resolutions.  By April 1 of each odd-numbered year, 
10.2 	the house of representatives and the senate must each adopt a budget resolution that 
10.3 	applies to that house.  Each house's resolution must establish overall expenditure targets 
10.4 	for the upcoming biennium, and separate expenditure targets for each major budget bill 
10.5 	designated in the concurrent resolution adopted under subdivision 2.

10.6 	Sec. 8. Minnesota Statutes 2004, section 3.099, subdivision 1, is amended to read:
10.7 		Subdivision 1.Pay days; mileage; per diem. The compensation of each member 
10.8 	of the legislature is due on the first day of the regular legislative session of the term and 
10.9 	payable in equal parts on January 15, in the first month of each term and on the first 
10.10 	day of each following month during the term for which the member was elected. The 
10.11 	compensation of each member of the legislature elected at a special election is due on the 
10.12 	day the member takes the oath of office and payable within ten days of taking the oath for 
10.13 	the remaining part of the month in which the oath was taken, and then in equal parts on the 
10.14 	first day of each following month during the term for which the member was elected.
10.15 	Each member shall receive mileage for necessary travel to the place of meeting and 
10.16 	returning to the member's residence in the amount and for trips as authorized by the senate 
10.17 	for senate members and by the house of representatives for house members.
10.18 	Each member shall also receive per diem living expenses during a regular or 
10.19 	special session of the legislature in the amounts and for the purposes as determined by 
10.20 	the senate for senate members and by the house of representatives for house members, 
10.21 	except that members must not receive per diem living expenses for a special session that 
10.22 	is called within 60 days of adjournment of a regular session in an odd-numbered year 
10.23 	because the legislature failed to pass the primary bill establishing state tax policy and the 
10.24 	primary bill making appropriations in each of the following areas: higher education; early 
10.25 	childhood through high school education; agriculture and rural development; environment 
10.26 	and natural resources; health and human services; state government finance; economic 
10.27 	development; public safety; and transportation. A member must not receive per diem 
10.28 	living expenses during a special session that is called in an even-numbered year because 
10.29 	the legislature failed to pass a bill making appropriations for capital investment during the 
10.30 	regular session that year.
10.31 	On January 15 in the first month of each term and on the first day of each following 
10.32 	month, the secretary of the senate and the chief clerk of the house of representatives shall 
10.33 	certify to the commissioner of finance, in duplicate, the amount of compensation then 
10.34 	payable to each member of their respective houses and its total.

11.1 	Sec. 9. Minnesota Statutes 2004, section 3.101, is amended to read:
11.2 	3.101 LIVING EXPENSES.
11.3 	A member of the legislature in addition to the compensation and mileage otherwise 
11.4 	provided by law shall be reimbursed for living and other expenses incurred in the 
11.5 	performance of duties or engaging in official business during a regular or special session 
11.6 	and when the legislature is not in session in the manner and amount prescribed by the 
11.7 	senate Committee on Rules and Administration for senators and by the house Committee 
11.8 	on Rules and Legislative Administration for house members. A member of the legislature 
11.9 	may not be compensated or reimbursed for housing expenses for more than six months 
11.10 	in a calendar year. 

11.11 	EFFECTIVE DATE. This section is effective July 1, 2006, and applies to calendar 
11.12 	year 2006. 

11.13 	Sec. 10. [3.1941] PUBLIC INFORMATION.
11.14 	The house of representatives and the senate must publish a combined schedule of 
11.15 	house and senate committee meetings and floor sessions. The combined schedule must 
11.16 	be based on the electronic database-driven schedule system developed by the house of 
11.17 	representatives.
11.18 	Any nonpartisan, weekly news magazine providing information to the public about 
11.19 	the legislature, the legislative process, or legislative proceedings must be a joint printed 
11.20 	publication of the house of representatives and the senate. Editorial control under this 
11.21 	section is the responsibility of the house of representatives.

11.22 	Sec. 11. [3.1942] NEW LEGISLATORS ORIENTATION TOUR.
11.23 	During the period between the state general election at which individuals are first 
11.24 	elected to the legislature and the day their term of office begins, new senators-elect and 
11.25 	representatives-elect are encouraged to participate in a tour of the various regions of the 
11.26 	state to become familiar with the industries, geographic areas, and communities that 
11.27 	make up the state. 

11.28 	EFFECTIVE DATE. This section is effective August 1, 2006, and applies to 
11.29 	legislators first elected to office on or after that date.  In addition legislators initially elected 
11.30 	prior to that date may join the orientation tour to be conducted in 2006.

11.31 	Sec. 12. [3.224] RULES COMMITTEE APPROVAL OF PURCHASES.
12.1 	The house of representatives or the senate may not purchase goods or services valued 
12.2 	at more than $5,000 from a nonlegislative entity unless the purchase is first approved by 
12.3 	the house or senate committee with jurisdiction over rules and legislative administration.

12.4 	Sec. 13. [3.306] MEETING TIMES.
12.5 	The house of representatives and the senate must adopt rules that set one time as the 
12.6 	regular hour of convening daily sessions in both houses.

12.7 	Sec. 14. [3.3061] JOINT STANDING COMMITTEES.
12.8 	The house of representatives and the senate are encouraged to adopt rules that:
12.9 	(1) establish a system of joint standing committees to consider and report on 
12.10 	legislation and conduct other legislative business, except that each house may separately 
12.11 	establish a committee on rules and administration and a committee on ethics; or
12.12 	(2) provide that house and senate committees with similar jurisdiction will meet at 
12.13 	the same time to facilitate joint meetings.

12.14 	Sec. 15. Minnesota Statutes 2004, section 3.971, subdivision 6, is amended to read:
12.15 		Subd. 6.Financial audits. The legislative auditor shall audit the financial 
12.16 	statements of the state of Minnesota required by section  16A.50, shall audit the financial 
12.17 	statements of the Metropolitan Airports Commission at least every other year, and, as 
12.18 	resources permit, shall audit Minnesota State Colleges and Universities, the University 
12.19 	of Minnesota, state agencies, departments, boards, commissions, courts, and other state 
12.20 	organizations subject to audit by the legislative auditor, including the State Agricultural 
12.21 	Society, Agricultural Utilization Research Institute, Minnesota Technology, Inc., 
12.22 	Minnesota Historical Society, Labor Interpretive Center, Minnesota Partnership for Action 
12.23 	Against Tobacco, Metropolitan Sports Facilities Commission, Metropolitan Airports 
12.24 	Commission, and Metropolitan Mosquito Control District. Financial audits must be 
12.25 	conducted according to generally accepted government auditing standards. The legislative 
12.26 	auditor shall see that all provisions of law respecting the appropriate and economic use 
12.27 	of public funds are complied with and may, as part of a financial audit or separately, 
12.28 	investigate allegations of noncompliance by employees of departments and agencies of 
12.29 	the state government and the other organizations listed in this subdivision. 

12.30 	Sec. 16. [4.51] EXPENSES OF GOVERNOR-ELECT.
12.31 	This section applies after a state general election in which a person who is not the 
12.32 	current governor is elected to take office as the next governor. The commissioner of 
13.1 	administration must request a transfer from the general fund contingent account of an 
13.2 	amount equal to 1.5 percent of the amount appropriated for operation of the Office of the 
13.3 	Governor and Lieutenant Governor for the current fiscal year. This request is subject to 
13.4 	the review and advice of the Legislative Advisory Commission pursuant to section 3.30. 
13.5 	If the transfer is approved, the commissioner of administration must make this amount 
13.6 	available to the governor-elect before he or she takes office.   The commissioner must 
13.7 	provide office space for the governor-elect and for any employees the governor-elect hires.

13.8 	Sec. 17. [6.465] DEFINITIONS.
13.9 		Subdivision 1.Application. For the purposes of this chapter, the terms defined in 
13.10 	this section have the meaning given them.
13.11 		Subd. 2.Political subdivision.  "Political subdivision" means a county, home rule 
13.12 	charter or statutory city, town, school district, metropolitan or regional agency, public 
13.13 	corporation, political subdivision, or special district as defined in subdivision 3. "Political 
13.14 	subdivision" does not include a metropolitan or regional agency or a public corporation 
13.15 	audited by the legislative auditor.
13.16 		Subd. 3.Special district. "Special district" means a public entity with a special 
13.17 	or limited purpose, financed by property tax revenues or other public funds, that is 
13.18 	not included in a city, county, or town financial report as a component of that local 
13.19 	government, that is created or authorized by law, and that is governed by (1) persons 
13.20 	directly elected to the governing board of the district, (2) persons appointed to the 
13.21 	governing board of the district by local elected officials, (3) local elected officials who 
13.22 	serve on the board by virtue of their elected office, or (4) a combination of these methods 
13.23 	of selection.  Special district includes special taxing districts listed in section 275.066.

13.24 	Sec. 18. Minnesota Statutes 2004, section 6.47, is amended to read:
13.25 	6.47 ACCOUNTING AND BUDGETING SYSTEMS; INVESTIGATION, 
13.26 	FORMS.
13.27 	The state auditor shall inquire into the accounting and budgeting systems of all 
13.28 	local units of government political subdivisions and shall prescribe suitable systems of 
13.29 	accounts and budgeting, and forms, books, and instructions concerning the same. At the 
13.30 	request of any local unit of government political subdivision the state auditor may install 
13.31 	such systems. The state auditor shall recommend a form for order- and warrant-checks of 
13.32 	all local units of government which shall conform, so far as consistent with statutory and 
13.33 	charter requirements, to approved banking practice in order to facilitate handling of such 
13.34 	instruments by banks and other depositories.

14.1 	Sec. 19. Minnesota Statutes 2004, section 6.51, is amended to read:
14.2 	6.51 SCHOOL DISTRICTS, TOWNS, AND STATUTORY CITIES OTHER 
14.3 	POLITICAL SUBDIVISIONS.
14.4 	All powers and duties of the state auditor herein imposed and conferred with respect 
14.5 	to the supervision, inspection, and examination of books and accounts of cities in section  
14.6 	6.50 are herewith extended to all school districts, towns, and statutory cities political 
14.7 	subdivisions of this state. A copy of the report of such examination shall be filed, subject 
14.8 	to public inspection, with the clerk or chief administrative officer of the town, statutory 
14.9 	city, or school district political subdivision receiving such examination, and an additional 
14.10 	copy with the county auditor of the county in which the administrative offices of such 
14.11 	town, statutory city, or school district the political subdivision are located. If such report 
14.12 	disclose malfeasance, misfeasance, or nonfeasance in office, the state auditor shall file 
14.13 	such copy with the county attorney of the county in which the administrative offices of 
14.14 	such school district, town, or statutory city the political subdivision are located, and the 
14.15 	county attorney shall institute such proceedings as the law and the public interest require. 

14.16 	Sec. 20. Minnesota Statutes 2004, section 6.54, is amended to read:
14.17 	6.54 EXAMINATION OF COUNTY AND MUNICIPAL POLITICAL 
14.18 	SUBDIVISION RECORDS PURSUANT TO PETITION.
14.19 		Subdivision 1.Petition of voters for audit. The registered voters in a county or 
14.20 	home rule charter or statutory city political subdivision other than a town or school district
14.21 	or the electors at an annual or special town meeting of a town may petition the state 
14.22 	auditor to examine the books, records, accounts, and affairs of the county, home rule 
14.23 	charter or statutory city, town political subdivision, or of any organizational unit, activity, 
14.24 	project, enterprise, or fund thereof; and the scope of the examination may be limited by the 
14.25 	petition, but the examination shall cover, at least, all cash received and disbursed and the 
14.26 	transactions relating thereto, provided that the state auditor shall not examine more than 
14.27 	the six latest years preceding the circulation of the petition, unless it appears to the state 
14.28 	auditor during the examination that the audit period should be extended to permit a full 
14.29 	recovery under bonds furnished by public officers or employees, and may if it appears to 
14.30 	the auditor in the public interest confine the period or the scope of audit or both period and 
14.31 	scope of audit, to less than that requested by the petition. In the case of a county or home 
14.32 	rule charter or statutory city political subdivision other than a town or school district, the 
14.33 	petition shall be signed by a number of registered voters at least equal to 20 percent of 
14.34 	those voting in the last presidential election. 
15.1 		Subd. 2.School districts. The eligible voters of any school district may petition the 
15.2 	state auditor, who shall be subject to the same restrictions regarding the scope and period 
15.3 	of audit, provided that the petition shall be signed by at least ten eligible voters for each 50 
15.4 	resident pupils in average daily membership during the preceding school year as shown on 
15.5 	the records in the office of the commissioner of education. In the case of school districts, 
15.6 	the petition shall be signed by at least ten eligible voters. 
15.7 		Subd. 3.Certifications required. At the time it is circulated, every petition shall 
15.8 	contain a statement that the cost of the audit will be borne by the county, city, or school 
15.9 	district political subdivision as provided by law. Thirty days before the petition is 
15.10 	delivered to the state auditor it shall be presented to the appropriate city or school district
15.11 	clerk or chief administrative officer of the political subdivision and the county auditor. 
15.12 	The county auditor shall determine and certify whether the petition is signed by the 
15.13 	required number of registered voters or eligible voters as the case may be. The certificate 
15.14 	shall be conclusive evidence thereof in any action or proceeding for the recovery of the 
15.15 	costs, charges, and expenses of any examination made pursuant to the petition.

15.16 	Sec. 21. Minnesota Statutes 2004, section 6.55, is amended to read:
15.17 	6.55 EXAMINATION OF RECORDS PURSUANT TO RESOLUTION OF 
15.18 	GOVERNING BODY.
15.19 	The governing body of any city, town, county or school district political subdivision, 
15.20 	by appropriate resolution may ask the state auditor to examine the books, records, 
15.21 	accounts and affairs of their government, or of any organizational unit, activity, project, 
15.22 	enterprise, or fund thereof; and the state auditor shall examine the same upon receiving, 
15.23 	pursuant to said resolution, a written request signed by a majority of the members of the 
15.24 	governing body; and the governing body of any public utility commission, or of any 
15.25 	public corporation having a body politic and corporate political subdivision, or of any 
15.26 	instrumentality joint or several of any city, town, county, or school district political 
15.27 	subdivision, may request an audit of its books, records, accounts and affairs in the same 
15.28 	manner; provided that the scope of the examination may be limited by the request, but 
15.29 	such examination shall cover, at least, all cash received and disbursed and the transactions 
15.30 	relating thereto. Such written request shall be presented to the clerk, or recording officer, 
15.31 	or chief administrative officer  of such city, town, county, school district, public utility 
15.32 	commission, public corporation the political subdivision, or instrumentality, before 
15.33 	being presented to the state auditor, who shall determine whether the same is signed 
15.34 	by a majority of the members of such governing body and, if found to be so signed, 
15.35 	shall certify such fact, and the fact that such resolution was passed, which certificate 
16.1 	shall be conclusive evidence thereof in any action or proceedings for the recovery of the 
16.2 	costs, charges and expenses of any examination made pursuant to such request. Nothing 
16.3 	contained in any of the laws of the state relating to the state auditor, shall be so construed 
16.4 	as to prevent any county, city, town, or school district political subdivision from employing 
16.5 	a certified public accountant to examine its books, records, accounts, and affairs. For the 
16.6 	purposes of this section, the governing body of a town is the town board.

16.7 	Sec. 22. Minnesota Statutes 2004, section 6.551, is amended to read:
16.8 	6.551 EXAMINATION OF GRANTEES AND CONTRACTORS OF LOCAL 
16.9 	GOVERNMENTS POLITICAL SUBDIVISIONS.
16.10 	The state auditor may examine the books, records, documents, and accounting 
16.11 	procedures and practices of a contractor or grantee of a local government political 
16.12 	subdivision pursuant to section  16C.05, subdivision 5 and section 16A.86. The 
16.13 	examination shall be limited to the books, records, documents, and accounting procedures 
16.14 	and practices that are relevant to the contract or transaction with the local government
16.15 	political subdivision. 

16.16 	Sec. 23. Minnesota Statutes 2004, section 6.57, is amended to read:
16.17 	6.57 COST OF EXAMINATION, COLLECTION.
16.18 	On July first, 1 of each year, the state auditor shall certify all uncollected claims for 
16.19 	the examination of any county, city, town, or school district which political subdivision 
16.20 	that have remained unpaid for a period of three months from the date of such claim. The 
16.21 	auditor shall forthwith notify the clerk, or recording officer, or chief administrative officer 
16.22 	of each county, city, town, or school district political subdivision against which the state 
16.23 	has a claim that, if the same is not paid, with interest at the rate of six percent per annum 
16.24 	from the date of the claim, within 90 days, the full amount thereof will be certified to the 
16.25 	county auditor of the county having such examination, or to the county auditor for the 
16.26 	county or counties in which such city, town, or school district the political subdivision is 
16.27 	situated, for collection by special tax levy, as herein provided. Such notice shall be served 
16.28 	by certified mail and the deposit thereof in the United States mail shall constitute due and 
16.29 	legal service thereof upon the county, city, town, or school district political subdivision.

16.30 	Sec. 24. Minnesota Statutes 2004, section 6.59, is amended to read:
16.31 	6.59 CLAIM OF STATE FOR COST OF EXAMINATION, CONTEST.
17.1 	On or before September first 1 of each year, following service of the notice, any such 
17.2 	county, city, town, or school district political subdivision may serve notice, in writing, 
17.3 	upon the attorney general that it desires to contest the legality of the state's claim, and 
17.4 	the attorney general shall forthwith file with the court administrator of the district court 
17.5 	of the county having such examination, or in which such city, town, or school district
17.6 	the political subdivision, or major part thereof, is situated, a verified statement of the 
17.7 	state's claim, duly itemized and serve upon the auditor or, clerk, or chief administrative 
17.8 	officer of such county, city, town, or school district the political subdivision, by certified 
17.9 	mail, a copy of such statement. Such county, city, town, or school district The political 
17.10 	subdivision may file with the court administrator of such district court, within ten days 
17.11 	after the service of such statement upon it, verified objections to the state's claim, and 
17.12 	such district court shall thereupon summarily, in or out of term, hear and determine the 
17.13 	amount due the state, if any, for such examination, at a time and place fixed by the court 
17.14 	therefor. The court administrator of court shall certify to the county auditor of the county 
17.15 	having such examination, or to the county auditor of the county or counties in which such 
17.16 	city, town, or school district the political subdivision is situated, the amount so determined 
17.17 	by the court to be due to the state, if any.

17.18 	Sec. 25. Minnesota Statutes 2004, section 6.60, is amended to read:
17.19 	6.60 STATE AUDITOR, CERTIFICATION OF AMOUNTS DUE.
17.20 	On October first, 1 of each year, the state auditor shall certify the respective amounts 
17.21 	due the state from the various counties, cities, towns, and school districts political 
17.22 	subdivisions, including interest computed to July first, following, to the county auditor of 
17.23 	the county having such examination, or to the county auditor of the county in which any 
17.24 	such city, town, or school district political subdivision is, in whole or in part, situated. The 
17.25 	county auditor, upon receiving a certificate from the state auditor, or a certificate from the 
17.26 	court administrator, as provided in section  6.59, shall include the amount of the state's 
17.27 	claim, with 25 percent added, in the tax levy for general revenue purposes of the county or 
17.28 	municipality political subdivision liable therefor, and such additional levy shall not be 
17.29 	within any limitation imposed by law upon the amount of taxes which may be levied for 
17.30 	revenue purposes. Upon completion of the June tax settlement following such levy the 
17.31 	county treasurer shall deduct from the amount apportioned to the county or municipality
17.32 	political subdivision for general revenue purposes, the amount due the state, including 
17.33 	interest, and remit the same to the commissioner of finance. 

17.34 	Sec. 26. Minnesota Statutes 2004, section 6.62, subdivision 2, is amended to read:
18.1 		Subd. 2.Cost of postaudit. The amount of said levy shall be the amount of the 
18.2 	claim or claims submitted by the state auditor for such services or the auditor's estimate of 
18.3 	the entire cost, and said amount shall be certified by the governing body, after the request 
18.4 	or petition for the audit has been filed, to the county auditor, along with amounts requested 
18.5 	for other governmental purposes. If such levy has been made in excess of statutory 
18.6 	limitations, and if the request or petition is withdrawn after the amount of the levy has 
18.7 	been certified but the levy cannot be canceled because it has been spread on the tax lists, 
18.8 	the governing body shall cause the proceeds of such levy to be transferred to the general 
18.9 	fund and reduce the succeeding year's levy for general purposes accordingly. Provided, 
18.10 	however, counties, cities, and other governmental units political subdivisions whose 
18.11 	financial affairs are required by statute or charter to be audited at regular intervals may 
18.12 	levy annually or biennially in anticipation of the audit expense, without the presentment of 
18.13 	such claim or estimate by the state auditor.

18.14 	Sec. 27. Minnesota Statutes 2004, section 6.63, is amended to read:
18.15 	6.63 APPLICATION.
18.16 	The units of government set forth in sections  6.465, 6.56,  6.57,  6.59,  6.60, and  6.62
18.17 	shall be construed, where applicable, to include, in addition to those therein specifically 
18.18 	named, public utility commissions, public corporations, and instrumentalities. 

18.19 	Sec. 28. Minnesota Statutes 2004, section 6.64, is amended to read:
18.20 	6.64 COOPERATION WITH PUBLIC ACCOUNTANTS; PUBLIC 
18.21 	ACCOUNTANT DEFINED.
18.22 	There shall be mutual cooperation between the state auditor and public accountants 
18.23 	in the performance of auditing, accounting, and other related services for counties, 
18.24 	cities, towns, school districts, and other public corporations political subdivisions. For 
18.25 	the purposes of sections  6.64 to  6.71 the term public accountant shall have the meaning 
18.26 	ascribed to it in section  412.222. 

18.27 	Sec. 29. Minnesota Statutes 2004, section 6.65, is amended to read:
18.28 	6.65 MINIMUM PROCEDURES FOR AUDITORS, PRESCRIBED.
18.29 	The state auditor shall prescribe minimum procedures and the audit scope for 
18.30 	auditing the books, records, accounts, and affairs of counties and local governments
18.31 	political subdivisions in Minnesota. The minimum scope for audits of all local 
18.32 	governments political subdivisions must include financial and legal compliance audits. 
19.1 	Audits of all school districts must include a determination of compliance with uniform 
19.2 	financial accounting and reporting standards. The state auditor shall promulgate an 
19.3 	audit guide for legal compliance audits, in consultation with representatives of the state 
19.4 	auditor, the attorney general, towns, cities, counties, school districts, and private sector 
19.5 	public accountants.

19.6 	Sec. 30. Minnesota Statutes 2004, section 6.66, is amended to read:
19.7 	6.66 CERTAIN PRACTICES OF PUBLIC ACCOUNTANTS AUTHORIZED.
19.8 	Any public accountant may engage in the practice of auditing the books, records, 
19.9 	accounts, and affairs of counties, cities, towns, school districts, and other public 
19.10 	corporations which political subdivisions that are not otherwise required by law to be 
19.11 	audited exclusively by the state auditor.

19.12 	Sec. 31. Minnesota Statutes 2004, section 6.67, is amended to read:
19.13 	6.67 PUBLIC ACCOUNTANTS; REPORT OF EVIDENCE POINTING TO 
19.14 	MISCONDUCT.
19.15 	Whenever a public accountant in the course of auditing the books and affairs of a 
19.16 	county, city, town, school district, or other public corporations political subdivision, shall 
19.17 	discover evidence pointing to nonfeasance, misfeasance, or malfeasance, on the part of 
19.18 	an officer or employee in the conduct of duties and affairs, the public accountant shall 
19.19 	promptly make a report of such discovery to the state auditor and the county attorney of 
19.20 	the county in which the governmental unit political subdivision is situated and the public 
19.21 	accountant shall also furnish a copy of the report of audit upon completion to said officers. 
19.22 	The county attorney shall act on such report in the same manner as required by law for 
19.23 	reports made to the county attorney by the state auditor.

19.24 	Sec. 32. Minnesota Statutes 2004, section 6.68, is amended to read:
19.25 	6.68 STATE AUDITOR MAY ASSIST PUBLIC ACCOUNTANT IN AUDIT.
19.26 		Subdivision 1.Request to governing body. If in an audit of a county, city, town, 
19.27 	school district, or other public corporation political subdivision, a public accountant has 
19.28 	need of the assistance of the state auditor, the accountant may obtain such assistance 
19.29 	by requesting the governing body of the governmental unit political subdivision being 
19.30 	examined to request the state auditor to perform such auditing or investigative services, or 
19.31 	both, as the matter and the public interest require.
20.1 		Subd. 2.Auditor's report; payment. The state auditor shall work in close 
20.2 	cooperation with the public accountant in rendering the services so requested and the 
20.3 	state auditor shall make such report of findings to the county attorney as is required by 
20.4 	law to be made of nonfeasance, misfeasance, and malfeasance discovered by the state 
20.5 	auditor. The governmental unit political subdivision shall be liable for the payment of 
20.6 	such services so performed by the state auditor in the same manner as if it had requested 
20.7 	the services pursuant to section  6.55. 

20.8 	Sec. 33. Minnesota Statutes 2004, section 6.70, is amended to read:
20.9 	6.70 ACCESS TO REPORTS.
20.10 	The state auditor and the public accountants shall have reasonable access to each 
20.11 	other's audit reports, working papers, and audit programs concerning audits made by 
20.12 	each of counties, cities, towns, school districts, and other public corporations political 
20.13 	subdivisions.

20.14 	Sec. 34. Minnesota Statutes 2004, section 6.71, is amended to read:
20.15 	6.71 SCOPE OF AUDITOR'S INVESTIGATION.
20.16 	Whenever the governing body of a county, city, town, or school district political 
20.17 	subdivision shall have requested a public accountant to make an audit of its books and 
20.18 	affairs, and such audit is in progress or has been completed, and registered voters or 
20.19 	electors petition or the governing body requests or both the state auditor to make an 
20.20 	examination covering the same, or part of the same, period, the state auditor may, in the 
20.21 	public interest, limit the scope of the examination to less than that specified in section  
20.22 	6.54, but the scope shall cover, at least, an investigation of those complaints which are 
20.23 	within the state auditor's powers and duties to investigate. 

20.24 	Sec. 35. [6.756] SPECIAL DISTRICTS; INFORMATION REQUIRED TO BE 
20.25 	FILED WITH STATE AUDITOR; AUDITS.
20.26 		Subdivision 1.Governance documents must be filed. Each special district must 
20.27 	file with the state auditor, within 60 days of adoption, any document relating to the 
20.28 	governance of the district, including articles of incorporation, bylaws, or agreements, 
20.29 	and any amendment to these documents.
20.30 		Subd. 2.Audit requirements. (a) A special district with total annual revenue 
20.31 	greater than the amount in paragraph (c) must provide for an annual audit of the district's 
20.32 	financial affairs by the state auditor or a public accountant in accordance with minimum 
20.33 	auditing procedures prescribed by the state auditor.
21.1 	(b) A special district with total annual revenue that is equal to or less than the amount 
21.2 	in paragraph (c) must provide for an audit of the district's financial affairs by the state 
21.3 	auditor or a public accountant in accordance with minimum audit procedures prescribed 
21.4 	by the state auditor at least once every five years.  The audit must be for a one-year 
21.5 	period to be determined at random by the person conducting the audit.  The audited 
21.6 	financial statement must be prepared in a form prescribed by the state auditor similar to 
21.7 	the reporting requirements for cities under 2,500 in population. For any year in which 
21.8 	a special district is not audited, the district must prepare a financial statement in a form 
21.9 	prescribed by the state auditor similar to the reporting requirements for cities reporting on 
21.10 	a cash basis and file that statement with the state auditor.
21.11 	(c) For the purposes of paragraphs (a) and (b), the amount in 2007 is $150,000 and in 
21.12 	2008 and after, $150,000 adjusted for inflation using the annual implicit price deflator for 
21.13 	government expenditures and gross investment for state and local governments prepared 
21.14 	by the Bureau of Economic Analysis of the United States Department of Commerce for 
21.15 	the 12-month period ending March 31 of the previous year.
21.16 	(d) This subdivision does not apply to a special district subject to financial auditing 
21.17 	and reporting requirements under other law.
21.18 		Subd. 3.Presentation to governing board; filing with state auditor. Except as 
21.19 	provided by other law, financial statements and audits must be completed, presented to 
21.20 	the district's governing board, and filed with the state auditor within 180 days after the 
21.21 	end of the district's fiscal year.

21.22 	Sec. 36. Minnesota Statutes 2004, section 6.76, is amended to read:
21.23 	6.76 LOCAL GOVERNMENTAL POLITICAL SUBDIVISION
21.24 	EXPENDITURES FOR LOBBYISTS.
21.25 	(a) On or before January 31 of each year, all counties, cities, school districts, 
21.26 	metropolitan agencies, regional railroad authorities, and the Metropolitan Council political 
21.27 	subdivisions shall report to the state auditor, on forms prescribed by the auditor, their 
21.28 	estimated expenditures paid for the previous calendar year to a lobbyist as defined in 
21.29 	section  10A.01, subdivision 21, except payments to associations of local governments
21.30 	political subdivisions that are reported under paragraph (b), and to any staff person not 
21.31 	registered as a lobbyist, over 25 percent of whose time is spent during the legislative 
21.32 	session on legislative matters. 
21.33 	(b) Associations of local governments political subdivisions subject to this section 
21.34 	shall report annually, on or before January 31, to the state auditor and the association's 
21.35 	members the proportionate amount of each member's dues spent for lobbying purposes.
22.1 	(c) For purposes of this section, "political subdivision" has the meaning given in 
22.2 	section 6.465, but also includes a metropolitan or regional agency or a public corporation 
22.3 	audited by the legislative auditor.

22.4 	Sec. 37. Minnesota Statutes 2004, section 8.01, is amended to read:
22.5 	8.01 APPEARANCE.
22.6 	The attorney general shall appear for the state in all causes in the supreme and 
22.7 	federal courts wherein the state is directly interested; also in all civil causes of like nature 
22.8 	in all other courts of the state whenever, in the attorney general's opinion, the interests of 
22.9 	the state require it. Upon request of the county attorney, the attorney general shall appear 
22.10 	in court in such criminal cases as the attorney general deems proper. Upon request of a 
22.11 	county attorney, the attorney general may assume the duties of the county attorney in 
22.12 	sexual psychopathic personality and sexually dangerous person commitment proceedings 
22.13 	under section  253B.185. Whenever the governor shall so request, in writing, the attorney 
22.14 	general shall prosecute any person charged with an indictable offense, and in all such 
22.15 	cases may attend upon the grand jury and exercise the powers of a county attorney.  The 
22.16 	attorney general may not provide funds or other assistance to a county attorney or other 
22.17 	local government prosecutor for purposes related to prosecution or potential prosecution 
22.18 	of laws relating to elections or campaign practices. 

22.19 	Sec. 38. Minnesota Statutes 2005 Supplement, section 10.60, subdivision 3, is 
22.20 	amended to read:
22.21 		Subd. 3.Prohibitions. (a) A Web site or publication must not include pictures 
22.22 	or other materials that tend to attribute the Web site or publication to an individual or 
22.23 	group of individuals instead of to a public office, state agency, or political subdivision. 
22.24 	A publication must not include the words "with the compliments of" or contain letters 
22.25 	of personal greeting that promote an elected or appointed official of a state agency or 
22.26 	political subdivision.
22.27 	(b) A Web site may not contain a link to a Weblog or site maintained by a candidate, 
22.28 	a political committee, a political party or party unit, a principal campaign committee, or a 
22.29 	state committee. Terms used in this paragraph have the meanings given them in chapter 
22.30 	10A, except that "candidate" also includes a candidate for an elected office of a political 
22.31 	subdivision. This paragraph does not apply to a Web site maintained by a public library if 
22.32 	the link is provided only for nonpartisan and educational purposes.

22.33 	EFFECTIVE DATE. This section is effective July 1, 2006.

23.1 	Sec. 39. Minnesota Statutes 2004, section 10A.02, subdivision 5, is amended to read:
23.2 		Subd. 5.Executive director; staff. The board must appoint an executive director. 
23.3 	The executive director is in the unclassified service. The executive director serves as 
23.4 	secretary of the board and must keep a record of all proceedings and actions by the board. 
23.5 	The board may also employ and prescribe the duties of other permanent or temporary 
23.6 	employees, including a staff attorney,  in the unclassified service as may be necessary to 
23.7 	administer this chapter, subject to appropriation. The executive director and all other 
23.8 	employees serve at the pleasure of the board. Expenses of the board must be approved by 
23.9 	the chair or another member as the rules of the board may provide and the expenses must 
23.10 	then be paid in the same manner as other state expenses are paid.

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

23.12 	Sec. 40. Minnesota Statutes 2005 Supplement, section 10A.31, subdivision 4, is 
23.13 	amended to read:
23.14 		Subd. 4.Appropriation. (a) The amounts designated by individuals for the state 
23.15 	elections campaign fund, less three percent, are appropriated from the general fund, must 
23.16 	be transferred and credited to the appropriate account in the state elections campaign fund, 
23.17 	and are annually appropriated for distribution as set forth in subdivisions 5, 5a, 6, and 7. 
23.18 	The remaining three percent must be kept in the general fund for administrative costs.
23.19 	(b) In addition to the amounts in paragraph (a), $1,250,000 for each general election 
23.20 	is appropriated from the general fund for transfer to the general account of the state 
23.21 	elections campaign fund.
23.22 	Of this appropriation, $65,000 each fiscal year must be set aside to pay assessments 
23.23 	made by the Office of Administrative Hearings under section 211B.37. Any balance 
23.24 	remaining in the first year of the biennium does not cancel and is available for the second 
23.25 	year. Amounts remaining at the end of the second year after all assessments have been 
23.26 	paid must be canceled to the general account.

23.27 	Sec. 41. Minnesota Statutes 2005 Supplement, section 11A.04, is amended to read:
23.28 	11A.04 DUTIES AND POWERS.
23.29 	The state board shall:
23.30 	(1) Act as trustees for each fund for which it invests or manages money in 
23.31 	accordance with the standard of care set forth in section 11A.09 if state assets are involved 
23.32 	and in accordance with chapter 356A if pension assets are involved.
24.1 	(2) Formulate policies and procedures deemed necessary and appropriate to carry 
24.2 	out its functions. Procedures adopted by the board must allow fund beneficiaries and 
24.3 	members of the public to become informed of proposed board actions. Procedures and 
24.4 	policies of the board are not subject to the Administrative Procedure Act.
24.5 	(3) Employ an executive director as provided in section 11A.07.
24.6 	(4) Employ investment advisors and consultants as it deems necessary.
24.7 	(5) Prescribe policies concerning personal investments of all employees of the board 
24.8 	to prevent conflicts of interest.
24.9 	(6) Maintain a record of its proceedings.
24.10 	(7) As it deems necessary, establish advisory committees subject to section 15.059 to 
24.11 	assist the board in carrying out its duties.
24.12 	(8) Not permit state funds to be used for the underwriting or direct purchase of 
24.13 	municipal securities from the issuer or the issuer's agent.
24.14 	(9) Direct the commissioner of finance to sell property other than money that has 
24.15 	escheated to the state when the board determines that sale of the property is in the best 
24.16 	interest of the state. Escheated property must be sold to the highest bidder in the manner 
24.17 	and upon terms and conditions prescribed by the board.
24.18 	(10) Undertake any other activities necessary to implement the duties and powers 
24.19 	set forth in this section.
24.20 	(11) Establish a formula or formulas to measure management performance and 
24.21 	return on investment. Public pension funds in the state shall utilize the formula or 
24.22 	formulas developed by the state board.
24.23 	(12) Except as otherwise provided in article XI, section 8, of the Constitution of the 
24.24 	state of Minnesota, employ, at its discretion, qualified private firms to invest and manage 
24.25 	the assets of funds over which the state board has investment management responsibility. 
24.26 	There is annually appropriated to the state board, from the assets of the funds for which 
24.27 	the state board utilizes a private investment manager, sums sufficient to pay the costs of 
24.28 	employing private firms. Each year, by January 15, the board shall report to the governor 
24.29 	and legislature on the cost and the investment performance of each investment manager 
24.30 	employed by the board.
24.31 	(13) Adopt an investment policy statement that includes investment objectives, asset 
24.32 	allocation, and the investment management structure for the retirement fund assets under 
24.33 	its control. The statement may be revised at the discretion of the state board. The state 
24.34 	board shall seek the advice of the council regarding its investment policy statement. 
24.35 	Adoption of the statement is not subject to chapter 14.
25.1 	(14) Adopt a compensation plan setting the terms and conditions of employment for 
25.2 	unclassified board employees who are not covered by a collective bargaining agreement.
25.3 	There is annually appropriated to the state board, from the assets of the funds for 
25.4 	which the state board provides investment services, sums sufficient to pay the costs of 
25.5 	all necessary expenses for the administration of the board. These sums will be deposited 
25.6 	in the State Board of Investment operating account, which must be established by the 
25.7 	commissioner of finance.

25.8 	Sec. 42. Minnesota Statutes 2005 Supplement, section 11A.07, subdivision 4, is 
25.9 	amended to read:
25.10 		Subd. 4.Duties and powers. The director, at the direction of the state board, shall:
25.11 	(1) plan, direct, coordinate, and execute administrative and investment functions 
25.12 	in conformity with the policies and directives of the state board and the requirements of 
25.13 	this chapter and of chapter 356A;
25.14 	(2) prepare and submit biennial and annual budgets to the board and with the 
25.15 	approval of the board submit the budgets to the Department of Finance;
25.16 	(3) employ professional and clerical staff as necessary. Employees whose primary 
25.17 	responsibility is to invest or manage money or employees who hold positions designated 
25.18 	as unclassified under section 43A.08, subdivision 1a, are in the unclassified service of the 
25.19 	state. Other employees are in the classified service. Unclassified employees who are 
25.20 	not covered by a collective bargaining agreement are employed under the terms and 
25.21 	conditions of the compensation plan approved under section 43A.18, subdivision 3b;
25.22 	(3) (4) report to the state board on all operations under the director's control and 
25.23 	supervision;
25.24 	(4) (5) maintain accurate and complete records of securities transactions and official 
25.25 	activities;
25.26 	(5) (6) establish a policy relating to the purchase and sale of securities on the basis of 
25.27 	competitive offerings or bids. The policy is subject to board approval;
25.28 	(6) (7) cause securities acquired to be kept in the custody of the commissioner of 
25.29 	finance or other depositories consistent with chapter 356A, as the state board deems 
25.30 	appropriate;
25.31 	(7) (8) prepare and file with the director of the Legislative Reference Library, by 
25.32 	December 31 of each year, a report summarizing the activities of the state board, the 
25.33 	council, and the director during the preceding fiscal year. The report must be prepared 
25.34 	so as to provide the legislature and the people of the state with a clear, comprehensive 
25.35 	summary of the portfolio composition, the transactions, the total annual rate of return, and 
26.1 	the yield to the state treasury and to each of the funds whose assets are invested by the 
26.2 	state board, and the recipients of business placed or commissions allocated among the 
26.3 	various commercial banks, investment bankers, and brokerage organizations. The report 
26.4 	must contain financial statements for funds managed by the board prepared in accordance 
26.5 	with generally accepted accounting principles;
26.6 	(8) (9) require state officials from any department or agency to produce and provide 
26.7 	access to any financial documents the state board deems necessary in the conduct of 
26.8 	its investment activities;
26.9 	(9) (10) receive and expend legislative appropriations; and
26.10 	(10) (11) undertake any other activities necessary to implement the duties and 
26.11 	powers set forth in this subdivision consistent with chapter 356A.

26.12 	Sec. 43. Minnesota Statutes 2004, section 11A.07, subdivision 5, is amended to read:
26.13 		 Subd. 5.Apportionment of expenses. The executive director shall apportion the 
26.14 	actual expenses incurred by the board on an accrual basis among the several funds whose 
26.15 	assets are invested by the board based on the weighted average assets under management 
26.16 	during each quarter.  The charge to each fund must be calculated, billed, and paid on a 
26.17 	quarterly basis in accordance with procedures for interdepartmental payments established 
26.18 	by the commissioner of finance.  The amounts necessary to pay these charges are 
26.19 	appropriated from the investment earnings of each fund.  Receipts must be credited to the 
26.20 	general fund as nondedicated receipts. The annual expenses incurred by the State Board 
26.21 	of Investment will be apportioned among the state general fund, the retirement funds 
26.22 	administered by the Minnesota State Retirement System, Public Employees Retirement 
26.23 	Association, and Teachers Retirement Association, and all other funds as follows:
26.24 	(1) on a biennial basis, the State Board of Investment, in accordance with biennial 
26.25 	budget procedures established by the commissioner of finance, may request a direct 
26.26 	appropriation that represents the portion of the State Board of Investment expenses 
26.27 	necessary to provide investment services to the state general fund.  This appropriation 
26.28 	must be deposited in the State Board of Investment operating account;
26.29 	(2) the executive director shall apportion the actual expenses incurred by the State 
26.30 	Board of Investment, less the charge to the state general fund, among the funds whose 
26.31 	assets are invested by the State Board of Investment, with the exception of the state general 
26.32 	fund, based on the weighted average assets under management during the fiscal year.  The 
26.33 	amounts necessary to pay these charges are apportioned from the investment earnings of 
26.34 	each fund.  Receipts must be credited to the State Board of Investment operating account;
27.1 	(3) the actual expenses apportioned and charged to the funds, with the exception 
27.2 	of the state general fund and the retirement funds administered by the Minnesota State 
27.3 	Retirement System, Public Employees Retirement Association, and Teachers Retirement 
27.4 	Association, must be calculated, billed, and paid on a quarterly basis in accordance with 
27.5 	procedures for interdepartmental payments established by the commissioner of finance; 
27.6 	and 
27.7 	(4) the annual estimated expenses to be incurred by the State Board of Investment 
27.8 	that will be payable by the retirement funds administered by the Minnesota State 
27.9 	Retirement System, Public Employees Retirement Association, and Teachers Retirement 
27.10 	Association must be deposited in the State Board of Investment operating account on the 
27.11 	first business day of each fiscal year.  A reconciliation of the actual expenses compared to 
27.12 	the estimated costs must occur at the end of each fiscal year with any surplus or deficit 
27.13 	being credited or debited to each of the respective funds.  The State Board of Investment 
27.14 	must present a statement of accrued actual expenses to each fund at the end of each 
27.15 	quarter during each fiscal year.

27.16 	Sec. 44. Minnesota Statutes 2005 Supplement, section 14.127, subdivision 1, is 
27.17 	amended to read:
27.18 		Subdivision 1.Cost thresholds. An agency must determine if the cost of complying 
27.19 	with a proposed rule in the first year after the rule takes effect will exceed $25,000$10,000 
27.20 	for: (1) any one business that has less than 50 full-time employees; or (2) any one statutory 
27.21 	or home rule charter city that has less than ten full-time employees. For purposes of this 
27.22 	section, "business" means a business entity organized for profit or as a nonprofit, and 
27.23 	includes an individual, partnership, corporation, joint venture, association, or cooperative.

27.24 	EFFECTIVE DATE. This section is effective July 1, 2006. This section applies 
27.25 	to any rule for which the public hearing record has not closed before July 1, 2006, or, 
27.26 	if there is no public hearing, for which the agency has not submitted the record to the 
27.27 	administrative law judge before that date. 

27.28 	Sec. 45. Minnesota Statutes 2005 Supplement, section 14.127, subdivision 3, is 
27.29 	amended to read:
27.30 		Subd. 3.Legislative approval required. If the agency determines that the cost 
27.31 	exceeds the threshold in subdivision 1, or if the administrative law judge disapproves the 
27.32 	agency's determination that the cost does not exceed the threshold in subdivision 1, any 
27.33 	business that has less than 50 full-time employees or any statutory or home rule charter 
27.34 	city that has less than ten full-time employees may file a written statement with the agency 
28.1 	claiming a temporary exemption from the rules. Upon filing of such a statement with the 
28.2 	agency, the rules do not apply to that business or that city until the rules are approved by a 
28.3 	law enacted after the agency determination or administrative law judge disapproval.
28.4 	An agency that receives a statement claiming a temporary exemption must report to the 
28.5 	legislature by January 15 after receiving the statement. Each report must list the name of 
28.6 	each business or city claiming an exemption and a citation to the rule that is the subject of 
28.7 	the exemption. The report must be filed in the manner specified in section 3.195, and a 
28.8 	copy must also be sent to the revisor of statutes.

28.9 	Sec. 46. Minnesota Statutes 2005 Supplement, section 14.127, subdivision 4, is 
28.10 	amended to read:
28.11 		Subd. 4.Exceptions. (a) Subdivision 3 does not apply if the administrative law 
28.12 	judge approves an agency's determination that the legislature has appropriated money to 
28.13 	sufficiently fund the expected cost of the rule upon the business or city proposed to be 
28.14 	regulated by the rule.
28.15 	(b) Subdivision 3 does not apply if the administrative law judge approves an 
28.16 	agency's determination that the rule has been proposed pursuant to a specific federal 
28.17 	statutory or regulatory mandate.
28.18 	(c) This section does not apply if the rule is adopted under section 14.388 or under 
28.19 	another law specifying that the rulemaking procedures of this chapter do not apply.
28.20 	(d) This section does not apply to a rule adopted by the Public Utilities Commission.
28.21 	(e) Subdivision 3 does not apply if the governor waives application of subdivision 3. 
28.22 	The governor may issue a waiver at any time, either before or after the rule would take 
28.23 	effect, but for the requirement of legislative approval. As soon as possible after issuing a 
28.24 	waiver under this paragraph, the governor must send notice of the waiver to the speaker of 
28.25 	the house of representatives and the president of the senate and must publish notice of 
28.26 	this determination in the State Register. Authority for the governor to issue a new waiver 
28.27 	under this paragraph expires June 30, 2007. 

28.28 	Sec. 47. Minnesota Statutes 2004, section 15.0575, subdivision 3, is amended to read:
28.29 		Subd. 3.Compensation. (a) Members of the boards may be compensated at the rate 
28.30 	of $55 a day spent on board activities, when authorized by the board, plus expenses in the 
28.31 	same manner and amount as authorized by the commissioner's plan adopted under section  
28.32 	43A.18, subdivision 2. If the amount of time spent on a board activity, including time spent 
28.33 	traveling to and from the member's home, is more than eight hours per day, the member 
28.34 	may be compensated at the rate of up to $66 for that day. Members who, as a result of 
29.1 	time spent attending board meetings, incur child care expenses that would not otherwise 
29.2 	have been incurred, may be reimbursed for those expenses upon board authorization. 
29.3 	(b) Members who are state employees or employees of the political subdivisions 
29.4 	of the state must not receive the daily payment for activities that occur during working 
29.5 	hours for which they are compensated by the state or political subdivision. However, a 
29.6 	state or political subdivision employee may receive the daily payment if the employee 
29.7 	uses vacation time or compensatory time accumulated in accordance with a collective 
29.8 	bargaining agreement or compensation plan for board activities. Members who are state 
29.9 	employees or employees of the political subdivisions of the state may receive the expenses 
29.10 	provided for in this subdivision unless the expenses are reimbursed by another source. 
29.11 	Members who are state employees or employees of political subdivisions of the state 
29.12 	may be reimbursed for child care expenses only for time spent on board activities that 
29.13 	are outside their working hours.
29.14 	(c) Each board must adopt internal standards prescribing what constitutes a day spent 
29.15 	on board activities and how to document days on which a person spends more than eight 
29.16 	hours on board activities for purposes of making daily payments under this subdivision.

29.17 	Sec. 48. [15.0585] GROUPS ABOLISHED FOR FAILURE TO MEET.
29.18 	This section applies to every state executive branch advisory council, committee, 
29.19 	and task force, and also applies to councils created in sections 3.922, 3.9223, 3.9225, 
29.20 	and 3.9226. If a group covered by this section fails to achieve a quorum necessary 
29.21 	to conduct business at three consecutive regularly scheduled meetings, the group is 
29.22 	abolished immediately.

29.23 	Sec. 49. Minnesota Statutes 2004, section 15.059, subdivision 3, is amended to read:
29.24 		Subd. 3.Compensation. (a) Members of the advisory councils and committees may 
29.25 	be compensated at the rate of $55 a day spent on council or committee activities, when 
29.26 	authorized by the council or committee, plus expenses in the same manner and amount 
29.27 	as authorized by the commissioner's plan adopted under section  43A.18, subdivision 
29.28 	2. If the amount of time spent on a council or committee activity, including time spent 
29.29 	traveling to and from the member's home, is more than eight hours per day, the member 
29.30 	may be compensated at the rate of up to $66 for that day. Members who, as a result of 
29.31 	time spent attending council or committee meetings, incur child care expenses that would 
29.32 	not otherwise have been incurred, may be reimbursed for those expenses upon council or 
29.33 	committee authorization. 
30.1 	(b) Members who are state employees or employees of political subdivisions must 
30.2 	not receive the daily compensation for activities that occur during working hours for which 
30.3 	they are compensated by the state or political subdivision. However, a state or political 
30.4 	subdivision employee may receive the daily payment if the employee uses vacation 
30.5 	time or compensatory time accumulated in accordance with a collective bargaining 
30.6 	agreement or compensation plan for council or committee activity. Members who are 
30.7 	state employees or employees of the political subdivisions of the state may receive the 
30.8 	expenses provided for in this section unless the expenses are reimbursed by another 
30.9 	source. Members who are state employees or employees of political subdivisions of the 
30.10 	state may be reimbursed for child care expenses only for time spent on board activities 
30.11 	that are outside their working hours.
30.12 	(c) Each council and committee must adopt internal standards prescribing what 
30.13 	constitutes a day spent on council or committee activities and how to document days 
30.14 	on which a person spends more than eight hours on council or committee activities for 
30.15 	purposes of making daily payments under this subdivision.

30.16 	Sec. 50. Minnesota Statutes 2004, section 15.059, subdivision 5, is amended to read:
30.17 		Subd. 5.Expiration date. (a) Unless a different date is specified by law, the 
30.18 	existence of each advisory council and committee expires on the date specified in the law 
30.19 	establishing the group or on June 30, 2003, whichever is sooner 2007. This subdivision 
30.20 	applies whether or not the law establishing the group provides that the group is governed 
30.21 	by this section.
30.22 	(b) An advisory council or committee does not expire in accordance with paragraph 
30.23 	(a) if it:
30.24 	(1) is an occupational licensure advisory group to a licensing board or agency;
30.25 	(2) administers and awards grants; or
30.26 	(3) is required by federal law or regulation.

30.27 	Sec. 51. Minnesota Statutes 2004, section 15.066, subdivision 2, is amended to read:
30.28 		Subd. 2.Procedure. In all appointments to state agencies which require the advice 
30.29 	and consent of the senate, the following procedure shall apply:
30.30 	(a) the appointing authority shall provide to the president of the senate a letter of 
30.31 	appointment which shall include the position title to which the appointment is being made; 
30.32 	the name, street address, city and county of the appointee; and the term of the appointment;
30.33 	(b) for those positions for which a statement of economic interest is required to be 
30.34 	filed by section  10A.09, the appointing authority shall give the notice to the Campaign 
31.1 	Finance and Public Disclosure Board required by section  10A.09, subdivision 2, at the 
31.2 	time the letter of appointment is directed to the president of the senate; 
31.3 	(c) if the appointment is subject to the open appointments program provided by 
31.4 	section  15.0597, the appointing authority shall provide the senate with a copy of the 
31.5 	application provided by section  15.0597, at the time the letter of appointment is directed to 
31.6 	the president of the senate; and
31.7 	(d) the appointment shall be effective and the appointee may commence to exercise 
31.8 	the duties of the office upon the receipt of the letter of appointment by the president 
31.9 	of the senate; and 
31.10 	(e) if the senate neither confirms nor rejects the appointment before the senate 
31.11 	adjourns the annual regular session to which the appointment was submitted, the senate 
31.12 	may not thereafter act on the appointment, except that if an appointment is submitted 
31.13 	within 20 days before the adjournment of a regular session, the senate may act on the 
31.14 	appointment within 20 days after the beginning of the next regular annual session.

31.15 	Sec. 52. [15.165] OCCUPATIONAL LICENSING TESTS.
31.16 	An executive branch state agency requiring an applicant for an occupational license 
31.17 	to appear in person to take a test must offer the test in at least three sites outside of the 
31.18 	seven-county metropolitan area. Agencies issuing occupational licenses are encouraged to 
31.19 	develop tests that can be administered online, to the extent practical.

31.20 	Sec. 53. [15.445] NOTIFICATION OF CERTAIN CHANGES TO 
31.21 	PROFESSIONAL LICENSURE LAWS AND RULES.
31.22 	An executive agency under section 16A.011, subdivision 12, that issues a 
31.23 	professional license must notify all current license holders of any changes made to laws or 
31.24 	rules administered by the agency under which a fine or other sanction may be imposed 
31.25 	on a noncompliant license holder. The agency must notify all current license holders of 
31.26 	the law or rule changes by mail at their last known addresses on or before the effective 
31.27 	date of the changes.

31.28 	Sec. 54. [15.84] USE OF VOLUNTEERS.
31.29 	Notwithstanding any law to the contrary, the state, a higher education institution, a 
31.30 	statutory or home rule charter city, county, town, school district, or other governmental 
31.31 	unit may use volunteers to provide services if the use of volunteers does not result in 
31.32 	layoffs of public employees.

32.1 	Sec. 55. [15.845] LIMIT ON ELECTED OFFICIAL PER DIEM.
32.2 	(a) A legislator, constitutional officer, or an elected local government official may 
32.3 	not receive more than one per diem payment from all state or local government sources 
32.4 	for any one day.  The amount of a per diem payment paid by a local government unit may 
32.5 	not exceed the amount of the per diem payment authorized for members of the house of 
32.6 	representatives or members of the senate, whichever is lower.
32.7 	(b) For purposes of this section: 
32.8 	(1) a per diem payment is a payment in addition to salary paid on a daily basis for 
32.9 	work  done on the activities of a public body; and 
32.10 	(2) an elected local government official is an elected member of the governing body 
32.11 	of a county, statutory or home rule charter city, town, school district, or other political 
32.12 	subdivision. 

32.13 	Sec. 56. [15.995] HISTORIC PUBLICLY OWNED BUILDINGS.
32.14 	A political subdivision of the state must not sell a building it owns that is listed on 
32.15 	the National Register of Historic Places, unless the  political subdivision first:
32.16 	(1)  notifies the Minnesota Historical Society and waits at least two years, during 
32.17 	which the political subdivision must request of and receive from the Historical Society a 
32.18 	study of the best use of the property in order to ascertain and preserve the historical value 
32.19 	of the property and ensure public use; and 
32.20 	(2) requests of and receives from the Department of Administration an inventory and 
32.21 	appraisal of the affected real and personal property to determine its value. 
32.22 	The Department of Administration and the Minnesota Historical Society must jointly 
32.23 	report their findings to the chairs and ranking minority members of legislative committees 
32.24 	with jurisdiction over state government finance. The requesting political subdivision must 
32.25 	pay the Minnesota Historical Society and the Department of Administration for services 
32.26 	provided under this section.

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

32.28 	Sec. 57. [15A.23] SALARY FORFEITURE.
32.29 		Subdivision 1.Other law superseded. Notwithstanding any law to the contrary, 
32.30 	members of the legislature and the governor forfeit salary under the circumstances 
32.31 	described in this section.
32.32 		Subd. 2.Failure to enact budget in odd-numbered year. (a) In an odd-numbered 
32.33 	year:
33.1 	(1) members of the legislature and the governor forfeit their salary for the month 
33.2 	of June if the house of representatives and the senate have not passed all of the major 
33.3 	appropriation and revenue bills before midnight of the first Monday following the third 
33.4 	Saturday in May;
33.5 	(2) members of the legislature and the governor forfeit their salary for the months of 
33.6 	July and August if the house of representatives and the senate have not passed all of the 
33.7 	major appropriation and revenue bills before midnight on June 30; and 
33.8 	(3) after August, members of the legislature and the governor forfeit their salary for 
33.9 	the next month if the house of representatives and the senate have not passed all of the 
33.10 	major appropriation bills by the end of the preceding month.
33.11 	(b) Members of the legislature may not receive per diem payments during any period 
33.12 	under this section in which members forfeit their salary.
33.13 	(c) If the governor forfeits salary under this section and the state pay periods do not 
33.14 	exactly coincide with the calendar month of forfeiture, the governor forfeits salary for the 
33.15 	two, two-week pay periods beginning after the first day of that month.
33.16 	(d) For purposes of this section, "major appropriation and revenue bills" mean 
33.17 	one or more bills establishing the taxes anticipated to be needed to provide funding for 
33.18 	state appropriations, and bills making appropriations for the following areas: higher 
33.19 	education; K-12 education; agriculture, environment, and natural resources; health and 
33.20 	human services; state government; jobs and economic development; transportation; and 
33.21 	public safety. This section does not require bills to be organized in the manner specified 
33.22 	in this paragraph, provided that appropriations are enacted covering all of the topics 
33.23 	listed in this paragraph.
33.24 		Subd. 3.Failure to enact budget decisions in even-numbered year. (a) If the 
33.25 	legislature meets in regular session in an even-numbered year, members of the legislature 
33.26 	and the governor forfeit their salary for the month beginning immediately following 
33.27 	adjournment of the regular session if:
33.28 	(1) the most recent forecast of general fund revenues and expenditures under section 
33.29 	16A.103 before adjournment of the regular session shows that anticipated general fund 
33.30 	expenditures for the remainder of the biennium exceed anticipated revenues for the 
33.31 	remainder of the biennium; and
33.32 	(2) the house of representatives and the senate do not pass legislation necessary to 
33.33 	correct the budget imbalance predicted by the forecast.
33.34 	(b) This subdivision does not apply if the amount by which general fund expenditures 
33.35 	are forecast to exceed revenues is ten percent or less of the amount in the budget reserve 
33.36 	account established in section 16A.152.

34.1 	Sec. 58. [15B.055] PARKING SPACES.
34.2 	To provide the public with greater access to legislative proceedings, all parking 
34.3 	spaces on Aurora Avenue in front of the Capitol building must be reserved for the public.

34.4 	Sec. 59. Minnesota Statutes 2004, section 16A.065, is amended to read:
34.5 	16A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES 
34.6 	DOCUMENTS.
34.7 	Notwithstanding section  16A.41, subdivision 1, the commissioner may allow an 
34.8 	agency to make advance deposits or payments for software or software maintenance 
34.9 	services for state-owned or leased electronic data processing equipment, for sole source 
34.10 	maintenance agreements where it is not cost-effective to pay in arrears, for exhibit booth 
34.11 	space or boat slip rental when required by the renter to guarantee the availability of space, 
34.12 	for registration fees where advance payment is required or advance payment discount is 
34.13 	provided, and for newspaper, magazine, and other subscription fees customarily paid for 
34.14 	in advance. The commissioner may also allow advance deposits by any department with 
34.15 	the Library of Congress and federal Supervisor of Documents for items to be purchased 
34.16 	from those federal agencies.

34.17 	Sec. 60. Minnesota Statutes 2004, section 16A.11, subdivision 3, is amended to read:
34.18 		Subd. 3.Part two: detailed budget. (a) Part two of the budget, the detailed budget 
34.19 	estimates both of expenditures and revenues, must contain any statements on the financial 
34.20 	plan which the governor believes desirable or which may be required by the legislature. 
34.21 	The detailed estimates shall include the governor's budget arranged in tabular form.
34.22 	(b) Tables listing expenditures for the next biennium must show the appropriation 
34.23 	base for each year. The appropriation base is the amount appropriated for the second 
34.24 	year of the current biennium. The tables must separately show any adjustments to the 
34.25 	base required by current law or policies of the commissioner of finance. For forecasted 
34.26 	programs, the tables must also show the amount of the forecast adjustments, based on the 
34.27 	most recent forecast prepared by the commissioner of finance under section  16A.103. For 
34.28 	all programs, the tables must show the amount of appropriation changes recommended 
34.29 	by the governor, after adjustments to the base and forecast adjustments, and the total 
34.30 	recommendation of the governor for that year. 
34.31 	(c) The detailed estimates must include a separate line listing the total cost of 
34.32 	professional and technical service contracts for the prior biennium and the projected 
34.33 	costs of those contracts for the current and upcoming biennium. They must also include 
34.34 	a summary of the personnel employed by the agency, reflected as full-time equivalent
35.1 	number of full-time equivalent positions in each agency program for the current biennium 
35.2 	and the projected number of full-time equivalent positions in each agency program for 
35.3 	the upcoming biennium.
35.4 	(d) The detailed estimates for internal service funds must include the number of 
35.5 	full-time equivalents by program; detail on any loans from the general fund, including 
35.6 	dollar amounts by program; proposed investments in technology or equipment of $100,000 
35.7 	or more; an explanation of any operating losses or increases in retained earnings; and a 
35.8 	history of the rates that have been charged, with an explanation of any rate changes and 
35.9 	the impact of the rate changes on affected agencies.

35.10 	Sec. 61. [16A.111] PROGRAM COMPARISON REPORT.
35.11 	(a) By the date on which the governor's detailed operating budget is submitted to 
35.12 	the legislature, the governor must submit to the legislature a report comparing major 
35.13 	spending programs in Minnesota to similar programs in neighboring states.   The report 
35.14 	must compare Minnesota program benefits, eligibility requirements, and spending with 
35.15 	those in each of the neighboring states. 
35.16 	(b) For purposes of this section: 
35.17 	(1) a "major spending program" means a program for which the governor 
35.18 	recommends general fund spending of more than $10,000,000 during the upcoming 
35.19 	biennium; and 
35.20 	(2) a "neighboring state" means Illinois, Indiana, Iowa, North Dakota, South Dakota, 
35.21 	and Wisconsin for all major spending programs and, for any particular program, includes 
35.22 	any additional states that the governor believes are important to the comparison for that 
35.23 	program. 
35.24 	(c) Notwithstanding section 3.195, a copy of the report required by this section must 
35.25 	be given to every legislator and also to the commissioner of every state agency.

35.26 	Sec. 62. Minnesota Statutes 2004, section 16A.1283, is amended to read:
35.27 	16A.1283 LEGISLATIVE APPROVAL REQUIRED.
35.28 	(a) Notwithstanding any law to the contrary, an executive branch state agency may 
35.29 	not: (1)  impose a new fee or increase an existing fee unless the new fee or increase 
35.30 	is approved by law; or (2) propose a law that would impose a new fee or increase an 
35.31 	existing fee that would take effect in the second fiscal year of the state biennium. For 
35.32 	purposes of this section, a fee is any charge for goods, services, regulation, or licensure, 
35.33 	and, notwithstanding paragraph (b), clause (3), includes charges for admission to or for 
35.34 	use of public facilities owned by the state.
36.1 	(b) This section does not apply to:
36.2 	(1) charges billed within or between state agencies, or billed to federal agencies;
36.3 	(2) the Minnesota State Colleges and Universities system;
36.4 	(3) charges for goods and services provided for the direct and primary use of a 
36.5 	private individual, business, or other entity;
36.6 	(4) charges that authorize use of state-owned lands and minerals administered by 
36.7 	the commissioner of natural resources by the issuance of leases, easements, cooperative 
36.8 	farming agreements, and land and water crossing licenses and charges for sales of 
36.9 	state-owned lands administered by the commissioner of natural resources; or
36.10 	(5) state park fees and charges established by commissioner's order.
36.11 	(c) An executive branch agency may reduce a fee that was set by rule before July 
36.12 	1, 2001, without legislative approval. Chapter 14 does not apply to fee reductions under 
36.13 	this paragraph.

36.14 	Sec. 63. [16A.1284] NO NEW FEES CHARGED TO SCHOOLS.
36.15 	(a) Notwithstanding any law to the contrary, a state agency may not charge a fee 
36.16 	to a school, unless the fee was in effect on July 1, 2006.
36.17 	(b) For purposes of this section, "school" means: 
36.18 	(1) a public school, as defined in section 120A.05, subdivisions 9, 11, 13, and 17; 
36.19 	(2) a nonpublic school that is accredited by an accrediting agency recognized 
36.20 	according to section 123B.445 or recognized by the commissioner; and 
36.21 	(3) a charter school created under section 124D.10.

36.22 	Sec. 64. [16A.1395] CONTINUING APPROPRIATIONS.
36.23 		Subdivision 1.Application.  This section applies only to an appropriation enacted 
36.24 	in a major finance or revenue bill.  The house of representatives and the senate must 
36.25 	adopt rules or resolutions specifying which bills are major finance or revenue bills. If 
36.26 	the house and the senate fail to agree on which bills are major finance or revenue bills, 
36.27 	"major finance or revenue bill" means the primary bill establishing state tax policy, and the 
36.28 	primary bill making  appropriations in each of the following areas:  higher education, early 
36.29 	childhood through high school education, agriculture and rural development, environment 
36.30 	and natural resources, health and human services, state government finance, economic 
36.31 	development, public safety, and transportation.
36.32 		Subd. 2. Certain appropriations continue.  (a) An appropriation from the general 
36.33 	fund or any other fund enacted in a major finance or revenue bill for the fiscal year ending 
36.34 	June 30 of an odd-numbered year remains in effect at the base level for future fiscal years 
37.1 	unless a law is enacted eliminating or amending the appropriation. The appropriation base 
37.2 	level is determined as provided in section 16A.11, subdivision 3, paragraph (b).
37.3 	(b)  The amounts needed to implement this section are appropriated from each fund 
37.4 	covered by this section. 
37.5 	(c) This section does not apply to an appropriation in a fiscal year if a law is enacted 
37.6 	appropriating money in that fiscal year for the purpose of the appropriation.
37.7 		Subd. 3. Exceptions and adjustments.  An appropriation remaining in effect under 
37.8 	authority of subdivision 2 must be adjusted or discontinued as required by other law, by 
37.9 	general policies of the commissioner of finance, and in the following circumstances:
37.10 	(a) An appropriation for the fiscal year ending June 30 of the odd-numbered year 
37.11 	does not remain in effect for the fiscal year starting on July 1 if the legislature specifically 
37.12 	designated the appropriation as a onetime appropriation, if the commissioner of finance 
37.13 	determines that the legislature clearly intended the appropriation to be onetime, or if the 
37.14 	program for which the appropriation was made expires on or before July 1. 
37.15 	(b) If an appropriation remains in effect under authority of subdivision 2, but the 
37.16 	program or activity that is the subject of the appropriation is scheduled to expire during a 
37.17 	fiscal year, the commissioner of finance must pro rate the appropriation.
37.18 	(c) The commissioner of finance may make technical adjustments to the amount of 
37.19 	an appropriation to the extent the commissioner determines the technical adjustments 
37.20 	are needed to accurately reflect the amount that constitutes the annual base level of the 
37.21 	appropriation.  The commissioner may make an adjustment under this clause only if one or 
37.22 	more of the following conditions is met:
37.23 	(1) the legislature previously appropriated money for a biennium, with the entire 
37.24 	appropriation being allocated to one year of the biennium, and the commissioner 
37.25 	determines an adjustment is necessary to  accurately reflect the annual amount needed to 
37.26 	maintain program operations at the same level;
37.27 	(2) laws or policies under which revenues and expenditures are accounted for 
37.28 	have changed to eliminate or consolidate certain funds or accounts, and adjustments in 
37.29 	appropriations are necessary to implement these changes;
37.30 	(3) duties have been transferred between agency programs, or between agencies, and 
37.31 	adjustments in appropriations are needed to reflect these transfers; or 
37.32 	(4) a program, or changes to a program, were not fully operational in one fiscal year, 
37.33 	but will be fully operational in the following year, and an adjustment to the appropriation 
37.34 	is needed to accurately reflect the annual cost of the new or changed program.
38.1 	The commissioner of finance must give the chairs of the senate finance and 
38.2 	house ways and means committees written notice of any adjustments made under this 
38.3 	subdivision.
38.4 		Subd. 4.Legislator compensation. In the event the process described in 
38.5 	subdivisions 1 to 3 applies, legislators shall forfeit all salary and compensation beginning 
38.6 	on July 1 of any odd-numbered year. This forfeiture shall continue until all appropriation 
38.7 	legislation has been adopted.

38.8 	Sec. 65. [16A.156] LIMIT ON ADMINISTRATIVE COSTS.
38.9 	As a condition of receiving a grant from an appropriation of state funds, the person 
38.10 	or entity receiving the grant must agree that no more than ten percent of the grant funds 
38.11 	will be spent for administrative purposes. This limit does not apply if the commissioner 
38.12 	of finance determines, after consulting with the chairs of appropriate legislative budget 
38.13 	committees, that this limit is impracticable because the legislative intent in appropriating 
38.14 	money for the grant is that more than ten percent of the grant is administrative in nature. 

38.15 	Sec. 66. [16A.37] GRANT RECIPIENTS; EMPLOYEE COMPENSATION.
38.16 	As a condition of receiving a direct appropriation of state funds or a grant of state 
38.17 	funds, the recipient must agree to provide the commissioner of finance a list of the position 
38.18 	and salary of each of the recipient's employees whose salary is more than the salary of 
38.19 	the governor.   The commissioner must post all information reported under this section on 
38.20 	the commissioner's Web site during the fiscal year in which the appropriation or grant is 
38.21 	received.  Within 30 days of receiving information from a recipient under this section, the 
38.22 	commissioner must send the information to the chairs and ranking minority members of 
38.23 	the house and senate committees with jurisdiction over state government finance issues.

38.24 	Sec. 67. Minnesota Statutes 2004, section 16A.86, is amended by adding a subdivision 
38.25 	to read:
38.26 		Subd. 5. Grant administration.  The commissioner may administer capital grants if 
38.27 	requested by another executive agency. The commissioner will work in collaboration with 
38.28 	the agency that made the request to ensure that program needs of the grant are addressed. 

38.29 	Sec. 68. [16A.89] GRANTS MANAGEMENT.
38.30 		Subdivision 1.Grant.  (a) A grant is a written instrument or electronic document 
38.31 	defining a legal relationship between a sponsor and a recipient when the principal purpose 
38.32 	of the relationship is to transfer cash or a thing of value to the recipient to support a 
39.1 	public purpose authorized by law instead of acquiring, by professional/technical contract, 
39.2 	purchase, lease, or barter, property or services for the direct benefit or use of the sponsor. 
39.3 	(b) This division does not apply to capital project grants to political subdivisions, as 
39.4 	defined by section 16A.86. 
39.5 		Subd. 2. Ethical practices and conflict of interest.  An employee of the executive 
39.6 	branch involved directly or indirectly in grants processes, at any level, is subject to the 
39.7 	code of ethics in section 43A.38. 
39.8 		Subd. 3. Conflict of interest policy development.  (a) The commissioner must 
39.9 	develop policies regarding code of ethics and conflict of interest designed to prevent 
39.10 	conflicts of interest for employees involved in the award and administration of grants. The 
39.11 	policies must apply to employees who are directly or indirectly involved in developing 
39.12 	requests for proposals, evaluating proposals, awarding grants, drafting and entering into 
39.13 	grant agreements, amending or revising grants, evaluating performance under these grants, 
39.14 	and authorizing payments under the grant. 
39.15 	(b) The policies must include: 
39.16 	(1) a process for making employees aware of policy and laws relating to conflict of 
39.17 	interest, and training for employees on how to avoid and address potential conflicts; 
39.18 	(2) a process under which an employee who has a conflict of interest or a potential 
39.19 	conflict of interest must disclose the matter; and 
39.20 	(3) a process under which work on the grant may be assigned to another employee if 
39.21 	possible. 
39.22 		Subd. 4. Reporting of violations.  A state employee who discovers evidence 
39.23 	of violation of laws or rules governing grants is encouraged to report the violation or 
39.24 	suspected violation to the employee's supervisor, the commissioner, the director, or 
39.25 	the legislative auditor. The legislative auditor shall report to the Legislative Audit 
39.26 	Commission if there are multiple complaints about the same agency. The auditor's report 
39.27 	to the Legislative Audit Commission under this section must disclose only the number and 
39.28 	type of violations alleged. An employee making a good faith report under this section 
39.29 	has the protections provided for under section 181.932, prohibiting the employer from 
39.30 	discriminating against the employee. 
39.31 		Subd. 5. Creation and validity of grant agreements.  (a) A grant agreement is not 
39.32 	fully executed and the state is not bound by the grant unless: 
39.33 	(1) the grant has been executed by the head of the agency or a delegate who is 
39.34 	a party to the grant; and 
39.35 	(2) the accounting system shows an encumbrance for the amount of the grant. 
40.1 	(b) The combined grant agreement and amendments must not exceed five years 
40.2 	without specific, written approval by the commissioner according to established policy, 
40.3 	procedures, and standards, or unless the commissioner determines that a longer duration is 
40.4 	in the best interest of the state. 
40.5 	(c) A fully executed copy of every grant agreement, amendments to the grant, and 
40.6 	other required records relating to the grant must be kept on file at the granting agency for a 
40.7 	time equal to that required of grantees in subdivision 7, paragraph (a). 
40.8 	(d) The attorney general may periodically review and evaluate a sample of state 
40.9 	agency grants to ensure compliance with applicable laws. 
40.10 		Subd. 6. Grant administration.  A granting agency shall diligently administer 
40.11 	and monitor any grant it has entered into. 
40.12 		Subd. 7. Audit.  (a) A grant agreement made by an executive agency or any unit of 
40.13 	local government must include, expressed or implied, an audit clause that provides that 
40.14 	the books, records, documents, and accounting procedures and practices of the grantee or 
40.15 	other party, that are relevant to the grant or transaction, are subject to examination by the 
40.16 	granting agency and either the legislative auditor or the state auditor, as appropriate, for a 
40.17 	minimum of four years from the grant agreement end date or receipt and approval of all 
40.18 	final reports, whichever is later. 
40.19 	(b) If the granting agency is a local unit of government, and the governing body of 
40.20 	the local unit of government requests that the state auditor examine the books, records, 
40.21 	documents, and accounting procedures and practices of the grantee or other party 
40.22 	according to this subdivision, the granting agency shall be liable for the cost of the 
40.23 	examination. If the granting agency is a local unit of government, and the grantee or other 
40.24 	party requests that the state auditor examine all books, records, documents, and accounting 
40.25 	procedures and practices related to the grant, the grantee or other party that requested the 
40.26 	examination shall be liable for the cost of the examination. 
40.27 		Subd. 8. Authority of attorney general.  The attorney general may pursue 
40.28 	remedies available by law to avoid the obligation of an agency to pay under a grant or to 
40.29 	recover payments made if activities under the grant are so unsatisfactory, incomplete, or 
40.30 	inconsistent that payment would involve unjust enrichment. The contrary opinion of the 
40.31 	granting agency does not affect the power of the attorney general under this subdivision.
40.32 		Subd. 9. Grants with Indian tribes and bands.  Notwithstanding any other law, an 
40.33 	agency may not require an Indian tribe or band to deny its sovereignty as a requirement or 
40.34 	condition of a grant with an agency.

40.35 	Sec. 69. [16B.242] RENT FOR HISTORIC BUILDINGS.
41.1 		Subdivision 1.Inventory. The commissioner of administration must maintain 
41.2 	an inventory of state-owned buildings that are listed on the National or State Register 
41.3 	of Historic Places or are determined eligible for listing on the National Register by the 
41.4 	State Historic Preservation Office. This subdivision does not apply to real property held 
41.5 	by the Board of Trustees of the Minnesota State Colleges and Universities or by the 
41.6 	University of Minnesota.
41.7 		Subd. 2.Rent on historic buildings. Notwithstanding any law to the contrary, 
41.8 	appropriations made from the bond proceeds fund after the effective date of this section 
41.9 	for renovation of historic buildings in the Capitol area must not be recovered through rent 
41.10 	charged to tenants of the building. For purposes of this subdivision:
41.11 	(1) a "historic building" is a building on the inventory maintained under subdivision 
41.12 	1; and
41.13 	(2) "Capitol area" has the meaning defined in section 15B.02.

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

41.15 	Sec. 70. [16B.614] CODE FOR REHABILITATION OF HISTORIC 
41.16 	STRUCTURES.
41.17 	The commissioner must adopt rules establishing a building code for the renovation 
41.18 	and rehabilitation of historic structures, including properties listed on the National or State 
41.19 	Register of Historic Places and properties designated by either a certified local government 
41.20 	or a heritage preservation commission created under the National Preservation Act of 
41.21 	1966 and whose designation is approved by the state historic preservation officer. The 
41.22 	commissioner may adopt a model code by reference with necessary modifications for 
41.23 	Minnesota conditions.

41.24 	Sec. 71. [16C.011] APPLICABILITY.
41.25 	Nothing in this chapter shall be construed to apply to grants under section 16A.86. 

41.26 	Sec. 72. Minnesota Statutes 2004, section 16C.02, is amended by adding a subdivision 
41.27 	to read:
41.28 		Subd. 3a.Best and final offer. "Best and final offer" means an optional step in 
41.29 	the solicitation process in which responders are requested to improve their response by 
41.30 	methods including, but not limited to, the reduction of cost, clarification or modification of 
41.31 	the response, or the provision of additional information.

41.32 	Sec. 73. Minnesota Statutes 2004, section 16C.02, subdivision 4, is amended to read:
42.1 		Subd. 4.Best value. "Best value" describes a result intended in the acquisition of all 
42.2 	goods and services. Price must be one of the evaluation criteria when acquiring goods 
42.3 	and services. Other evaluation criteria may include, but are not limited to, environmental 
42.4 	considerations, quality, and vendor performance. In achieving "best value" strategic 
42.5 	sourcing tools, including, but not limited to, best and final offers, negotiations, contract 
42.6 	consolidation, product standardization, and mandatory-use enterprise contracts shall be 
42.7 	used at the commissioner's discretion.

42.8 	Sec. 74. Minnesota Statutes 2004, section 16C.02, is amended by adding a subdivision 
42.9 	to read:
42.10 		Subd. 6a.Enterprise procurement. "Enterprise procurement" means the process 
42.11 	undertaken by the commissioner to leverage economies of scale of multiple end users to 
42.12 	achieve cost savings and other favorable terms in contracts for goods and services.

42.13 	Sec. 75. Minnesota Statutes 2004, section 16C.02, subdivision 12, is amended to read:
42.14 		Subd. 12.Request for proposal or RFP. "Request for proposal" or "RFP" means a 
42.15 	solicitation in which it is not advantageous to set forth all the actual, detailed requirements 
42.16 	at the time of solicitation and responses are subject to negotiation negotiated to achieve 
42.17 	best value for the state.

42.18 	Sec. 76. Minnesota Statutes 2004, section 16C.02, subdivision 14, is amended to read:
42.19 		Subd. 14.Response. "Response" means the offer received from a vendor in 
42.20 	response to a solicitation. A response includes submissions commonly referred to as 
42.21 	"offers," "best and final offers," "bids," "quotes," or "proposals."

42.22 	Sec. 77. Minnesota Statutes 2004, section 16C.02, is amended by adding a subdivision 
42.23 	to read:
42.24 		Subd. 20.Strategic sourcing. "Strategic sourcing" means methods used to analyze 
42.25 	and reduce spending on goods and services including, but not limited to, spend analysis, 
42.26 	product standardization, contract consolidation, multiple jurisdiction purchasing alliances, 
42.27 	reverse auctions, life-cycle costing, and other techniques.

42.28 	Sec. 78. Minnesota Statutes 2004, section 16C.03, subdivision 3, is amended to read:
42.29 		Subd. 3.Acquisition authority. The commissioner shall acquire all goods, services, 
42.30 	and utilities needed by agencies. The commissioner shall acquire goods, services, and 
42.31 	utilities by requests for bids, requests for proposals, reverse auctions as provided in 
43.1 	section  16C.10, subdivision 7, or other methods provided by law, unless a section of law 
43.2 	requires a particular method of acquisition to be used. The commissioner shall make all 
43.3 	decisions regarding acquisition activities. The determination of the acquisition method 
43.4 	and all decisions involved in the acquisition process, unless otherwise provided for by 
43.5 	law, shall be based on best value which includes an evaluation of price and may include 
43.6 	other considerations including, but not limited to, environmental considerations, quality, 
43.7 	and vendor performance. In achieving best value, methods including best and final offers, 
43.8 	negotiations, contract consolidation, product standardization, mandatory-use contracts, 
43.9 	total cost of ownership assessments, and other strategic sourcing techniques shall be 
43.10 	employed at the commissioner's discretion. The commissioner shall engage in enterprise 
43.11 	procurements to the extent practicable. A best value determination must be based on the 
43.12 	evaluation criteria detailed in the solicitation document. If criteria other than price are 
43.13 	used, the solicitation document must state the relative importance of price and other 
43.14 	factors. Contract awards for all systems integration projects in excess of $500,000 shall be 
43.15 	based on the proposal that provides best value to the state's requirements, as determined 
43.16 	by the evaluation criteria contained in the solicitation document. Evaluation criteria for 
43.17 	the acquisition of such information technology services shall provide for the selection of 
43.18 	the contractor on an objective basis not limited to cost alone. Unless it is determined by 
43.19 	the commissioner that an alternative solicitation method provided by law should be used 
43.20 	to determine best value, a request for bid must be used to solicit formal responses for all 
43.21 	building and construction contracts. Any or all responses may be rejected. When using the 
43.22 	request for bid process, the bid must be awarded to the lowest responsive and responsible 
43.23 	bidder, taking into consideration conformity with the specifications, terms of delivery, the 
43.24 	purpose for which the contract or purchase is intended, the status and capability of the 
43.25 	vendor, and other considerations imposed in the request for bids. The commissioner may 
43.26 	decide which is the lowest responsible bidder for all purchases and may use the principles 
43.27 	of life-cycle costing, where appropriate, in determining the lowest overall bid. The duties 
43.28 	set forth in this subdivision are subject to delegation pursuant to this section. 

43.29 	Sec. 79. Minnesota Statutes 2004, section 16C.03, subdivision 4, is amended to read:
43.30 		Subd. 4.Contracting authority. The commissioner shall conduct all contracting by, 
43.31 	for, and between agencies and perform all contract management and review functions for 
43.32 	contracts, except those functions specifically delegated to be performed by the contracting 
43.33 	agency, the attorney general, or otherwise provided for by law. The commissioner must 
43.34 	involve agency staff and agency staff must participate in the development of enterprise 
44.1 	procurements including the development of product standards, specifications, and other 
44.2 	requirements.

44.3 	Sec. 80. Minnesota Statutes 2004, section 16C.03, subdivision 8, is amended to read:
44.4 		Subd. 8.Policy and procedures. The commissioner is authorized to issue policies, 
44.5 	procedures, and standards applicable to all acquisition activities by and for agencies.
44.6 	Consistent with the authority specified in this chapter, the commissioner shall develop 
44.7 	and implement policies, procedures, and standards ensuring the optimal use of strategic 
44.8 	sourcing techniques.

44.9 	Sec. 81. Minnesota Statutes 2004, section 16C.03, subdivision 13, is amended to read:
44.10 		Subd. 13.Central stores. The commissioner is authorized to provide agencies with 
44.11 	supplies and equipment and operate all central stores and supply rooms serving more 
44.12 	than one agency. The commissioner is authorized to require agency use of this service 
44.13 	if consistent with "best value."

44.14 	Sec. 82. Minnesota Statutes 2004, section 16C.03, subdivision 16, is amended to read:
44.15 		Subd. 16.Delegation of duties. The commissioner may delegate duties imposed by 
44.16 	this chapter to the head of an agency and to any subordinate of the agency head. Delegated 
44.17 	duties shall be exercised in the name of the commissioner and under the commissioner's 
44.18 	direct supervision and control. A delegation of duties may include, but is not limited to, 
44.19 	allowing individuals within agencies to acquire goods, services, and utilities within dollar 
44.20 	limitations and for designated types of acquisitions. Delegation of contract management 
44.21 	and review functions must be filed with the secretary of state and may not, except with 
44.22 	respect to delegations within the Department of Administration, exceed two years in 
44.23 	duration. The commissioner may withdraw any delegation at the commissioner's sole 
44.24 	discretion. The commissioner may require an agency head or subordinate to accept 
44.25 	delegated responsibility to procure goods or services intended for the exclusive use of the 
44.26 	agency receiving the delegation.

44.27 	Sec. 83. Minnesota Statutes 2004, section 16C.04, subdivision 1, is amended to read:
44.28 		Subdivision 1.Duty. An employee of the executive branch involved directly or 
44.29 	indirectly in the acquisition or grants process, at any level, is subject to the code of ethics 
44.30 	in section  43A.38. 

44.31 	Sec. 84. Minnesota Statutes 2004, section 16C.04, subdivision 2, is amended to read:
45.1 		Subd. 2.Conflict of interest policy development. (a) The commissioner must 
45.2 	develop policies regarding code of ethics and conflict of interest designed to prevent 
45.3 	conflicts of interest for employees involved in the acquisition of goods, services, and 
45.4 	utilities or the award and administration of grant contracts. The policies must apply to 
45.5 	employees who are directly or indirectly involved in the acquisition of goods, services, 
45.6 	and utilities, developing requests for proposals, evaluating bids or proposals, awarding 
45.7 	the contract, selecting the final vendor, drafting and entering into contracts, evaluating 
45.8 	performance under these contracts, and authorizing payments under the contract.
45.9 	(b) The policies must contain a process for making employees aware of policy and 
45.10 	laws relating to conflict of interest, and for training employees on how to avoid and deal 
45.11 	with potential conflicts.
45.12 	(c) The policies must contain a process under which an employee who has a conflict 
45.13 	of interest or a potential conflict of interest must disclose the matter, and a process under 
45.14 	which work on the contract may be assigned to another employee if possible.

45.15 	Sec. 85. [16C.046] INELIGIBILITY.
45.16 	A person is not eligible to  be awarded a contract, or sell any goods or services to 
45.17 	an agency if the person has been convicted of a crime for knowingly employing illegal 
45.18 	aliens in the United States. The person remains ineligible for five years from the date of 
45.19 	the conviction. This section applies to the Minnesota State Colleges and Universities. 
45.20 	For purposes of this section, "person" means a natural person or a business. A business 
45.21 	is ineligible under this section if a natural person who owns more than one-half of the 
45.22 	business is convicted of a crime specified in this section. The commissioner may waive 
45.23 	application of this section if the commissioner determines that waiver is in the best 
45.24 	interests of the state.

45.25 	EFFECTIVE DATE. This section is effective July 1, 2006, and applies to 
45.26 	solicitations sent and contracts entered into on and after that date.

45.27 	Sec. 86. Minnesota Statutes 2004, section 16C.05, subdivision 1, is amended to read:
45.28 		Subdivision 1.Agency cooperation. Agencies shall fully cooperate with the 
45.29 	commissioner in the management and review of state contracts and in the development 
45.30 	and implementation of strategic sourcing techniques.

45.31 	Sec. 87. Minnesota Statutes 2004, section 16C.05, subdivision 2, is amended to read:
46.1 		Subd. 2.Creation and validity of contracts. (a) A contract is not valid and the state 
46.2 	is not bound by it and no agency, without the prior written approval of the commissioner 
46.3 	granted pursuant to subdivision 2a, may authorize work to begin on it unless:
46.4 	(1) it has first been executed by the head of the agency or a delegate who is a party 
46.5 	to the contract;
46.6 	(2) it has been approved by the commissioner; and
46.7 	(3) the accounting system shows an encumbrance for the amount of the contract 
46.8 	liability except as allowed by policy approved by the commissioner and the commissioner 
46.9 	of finance for routine, low-dollar procurements.
46.10 	(b) The combined contract and amendments must not exceed five years without 
46.11 	specific, written approval by the commissioner according to established policy, procedures, 
46.12 	and standards, or unless otherwise provided for by law. The term of the original contract 
46.13 	must not exceed two years unless the commissioner determines that a longer duration is 
46.14 	in the best interest of the state.
46.15 	(c) Grants, Interagency agreements, purchase orders, work orders, and annual plans 
46.16 	need not, in the discretion of the commissioner and attorney general, require the signature 
46.17 	of the commissioner and/or the attorney general. A signature is not required for work 
46.18 	orders and amendments to work orders related to Department of Transportation contracts. 
46.19 	Bond purchase agreements by the Minnesota Public Facilities Authority do not require 
46.20 	the approval of the commissioner.
46.21 	(d) Amendments to contracts must entail tasks that are substantially similar to 
46.22 	those in the original contract or involve tasks that are so closely related to the original 
46.23 	contract that it would be impracticable for a different contractor to perform the work. The 
46.24 	commissioner or an agency official to whom the commissioner has delegated contracting 
46.25 	authority under section  16C.03, subdivision 16, must determine that an amendment would 
46.26 	serve the interest of the state better than a new contract and would cost no more. 
46.27 	(e) A fully executed copy of every contract, amendments to the contract, and 
46.28 	performance evaluations relating to the contract must be kept on file at the contracting 
46.29 	agency for a time equal to that specified for contract vendors and other parties in 
46.30 	subdivision 5.
46.31 	(f) The attorney general must periodically review and evaluate a sample of state 
46.32 	agency contracts to ensure compliance with laws.

46.33 	Sec. 88. Minnesota Statutes 2004, section 16C.05, subdivision 5, is amended to read:
46.34 		Subd. 5.Subject to audit. A contract or any pass-through disbursement of public 
46.35 	funds to a vendor of goods or services or a grantee made by or under the supervision of 
47.1 	the commissioner or any county or unit of local government must include, expressed or 
47.2 	implied, an audit clause that provides that the books, records, documents, and accounting 
47.3 	procedures and practices of the vendor or other party, that are relevant to the contract 
47.4 	or transaction, are subject to examination by the contracting agency and either the 
47.5 	legislative auditor or the state auditor, as appropriate, for a minimum of six years. If the 
47.6 	contracting agency is a local unit of government, and the governing body of the local unit 
47.7 	of government requests that the state auditor examine the books, records, documents, 
47.8 	and accounting procedures and practices of the vendor or other party pursuant to this 
47.9 	subdivision, the contracting agency shall be liable for the cost of the examination. If the 
47.10 	contracting agency is a local unit of government, and the grantee, vendor, or other party 
47.11 	requests that the state auditor examine all books, records, documents, and accounting 
47.12 	procedures and practices related to the contract, the grantee, vendor, or other party that 
47.13 	requested the examination shall be liable for the cost of the examination. An agency 
47.14 	contract made for purchase, lease, or license of software and data from the state is not 
47.15 	required to contain this audit clause.

47.16 	Sec. 89. [16C.051] CONSIDERATION OF UNITED STATES PURCHASES.
47.17 	The commissioner and an agency must always consider the purchase of goods made 
47.18 	in the United States and services that will be performed in the United States, and must 
47.19 	attempt to purchase these goods and services when this would be in the best interests of 
47.20 	the state.

47.21 	Sec. 90. [16C.061] USED GOODS.
47.22 	When acquiring goods, the commissioner or the agency making the acquisition 
47.23 	must consider purchasing used goods if used goods may result in the best value for the 
47.24 	purchasing entity.

47.25 	Sec. 91. Minnesota Statutes 2005 Supplement, section 16C.064, is amended to read:
47.26 	16C.064 COST-BENEFIT ANALYSIS.
47.27 	(a) The commissioner or an agency official to whom the commissioner has delegated 
47.28 	duties under section 16C.03, subdivision 16, may not approve a contract or purchase of 
47.29 	goods or services in an amount greater than $50,000,000 unless a cost-benefit analysis has 
47.30 	been completed and shows a positive benefit to the public. The Management Analysis 
47.31 	Division must perform or direct the performance of the analysis. Money appropriated for 
47.32 	the contract or purchase must be used to pay for the analysis. A cost-benefit analysis 
48.1 	must be performed for a project if an aggregation of contracts or purchases for a project 
48.2 	exceeds $50,000,000.
48.3 	(b) All cost-benefit analysis documents under this section, including preliminary 
48.4 	drafts and notes, are public data.
48.5 	(c) If a cost-benefit analysis does not show a positive benefit to the public, the 
48.6 	governor may approve a contract or purchase of goods or services if a cost-effectiveness 
48.7 	study had been done that shows the proposed project is the most effective way to provide 
48.8 	a necessary public good.
48.9 	(d) This section applies to contracts for goods or services that are expected to have a 
48.10 	useful life of more than three years. This section does not apply for purchase of goods 
48.11 	or services for response to a natural disaster if an emergency has been declared by the 
48.12 	governor. This section does not apply to contracts involving the Minnesota state colleges 
48.13 	and universities, state buildings, or state highways.
48.14 	(e) This section is repealed effective July 1, 2008.

48.15 	Sec. 92. Minnesota Statutes 2004, section 16C.08, is amended by adding a subdivision 
48.16 	to read:
48.17 		Subd. 1a.Enterprise procurement process. Notwithstanding section 15.061 or 
48.18 	any other law, the commissioner shall, to the fullest extent practicable, conduct enterprise 
48.19 	procurements that result in the establishment of professional or technical contracts for 
48.20 	use by multiple state agencies. The commissioner is authorized to mandate use of any 
48.21 	contract entered into as a result of an enterprise procurement process. Agencies shall fully 
48.22 	cooperate in the development and use of contracts entered into under this section.

48.23 	Sec. 93. Minnesota Statutes 2004, section 16C.08, subdivision 2, is amended to read:
48.24 		Subd. 2.Duties of contracting agency. (a) Before an agency may seek approval of 
48.25 	a professional or technical services contract valued in excess of $5,000, it must provide 
48.26 	the following:
48.27 	(1) a description of how the proposed contract or amendment is necessary and 
48.28 	reasonable to advance the statutory mission of the agency;
48.29 	(2) a description of the agency's plan to notify firms or individuals who may be 
48.30 	available to perform the services called for in the solicitation; and
48.31 	(3) a description of the performance measures or other tools that will be used to 
48.32 	monitor and evaluate contract performance.; and
48.33 	(4) an explanation detailing, if applicable, why this procurement is being pursued 
48.34 	unilaterally by the agency and not as an enterprise procurement.
49.1 	(b) In addition to paragraph (a), the agency must certify that:
49.2 	(1) no current state employee is able and available to perform the services called 
49.3 	for by the contract;
49.4 	(2) the normal competitive bidding mechanisms will not provide for adequate 
49.5 	performance of the services;
49.6 	(3) reasonable efforts will be made to publicize the availability of the contract to 
49.7 	the public;
49.8 	(4) the agency will develop and implement a written plan providing for the 
49.9 	assignment of specific agency personnel to manage the contract, including a monitoring 
49.10 	and liaison function, the periodic review of interim reports or other indications of past 
49.11 	performance, and the ultimate utilization of the final product of the services;
49.12 	(5) the agency will not allow the contractor to begin work before the contract is fully 
49.13 	executed unless an exception under section  16C.05, subdivision 2a, has been granted by 
49.14 	the commissioner and funds are fully encumbered; 
49.15 	(6) the contract will not establish an employment relationship between the state or 
49.16 	the agency and any persons performing under the contract; and
49.17 	(7) in the event the results of the contract work will be carried out or continued by 
49.18 	state employees upon completion of the contract, the contractor is required to include 
49.19 	state employees in development and training, to the extent necessary to ensure that after 
49.20 	completion of the contract, state employees can perform any ongoing work related to 
49.21 	the same function.
49.22 	(c) A contract establishes an employment relationship for purposes of paragraph (b), 
49.23 	clause (6), if, under federal laws governing the distinction between an employee and an 
49.24 	independent contractor, a person would be considered an employee.

49.25 	Sec. 94. Minnesota Statutes 2005 Supplement, section 16C.09, is amended to read:
49.26 	16C.09 PROCEDURE FOR SERVICE CONTRACTS.
49.27 	(a) Before entering into or approving a service contract valued in excess of $5,000, 
49.28 	the commissioner must determine, at least, that:
49.29 	(1) no current state employee is able and available to perform the services called 
49.30 	for by the contract;
49.31 	(2) the work to be performed under the contract is necessary to the agency's 
49.32 	achievement of its statutory responsibilities and there is statutory authority to enter into 
49.33 	the contract;
49.34 	(3) the contract will not establish an employment relationship between the state or 
49.35 	the agency and any persons performing under the contract;
50.1 	(4) the contractor and agents are not employees of the state;
50.2 	(5) the contracting agency has specified a satisfactory method of evaluating and 
50.3 	using the results of the work to be performed; and
50.4 	(6) the combined contract and amendments will not exceed five years without 
50.5 	specific, written approval by the commissioner according to established policy, procedures, 
50.6 	and standards, or unless otherwise provided for by law. The term of the original contract 
50.7 	must not exceed two years, unless the commissioner determines that a longer duration is 
50.8 	in the best interest of the state.
50.9 	(b) For purposes of paragraph (a), clause (1), employees are available if qualified 
50.10 	and:
50.11 	(1) are already doing the work in question; or
50.12 	(2) are on layoff status in classes that can do the work in question.
50.13 	An employee is not available if the employee is doing other work, is retired, or has decided 
50.14 	not to do the work in question.
50.15 	(c) This section does not apply to an agency's use of inmates pursuant to sections 
50.16 	241.20 to 241.23 or to an agency's use of persons required by a court to provide:
50.17 	(1) community service; or
50.18 	(2) conservation or maintenance services on lands under the jurisdiction and control 
50.19 	of the state.

50.20 	Sec. 95. Minnesota Statutes 2005 Supplement, section 16C.10, subdivision 7, is 
50.21 	amended to read:
50.22 		Subd. 7.Reverse auction. (a) For the purpose of this subdivision, "reverse auction" 
50.23 	means a purchasing process in which vendors compete to provide goods or computer
50.24 	services at the lowest selling price in an open and interactive environment. A reverse 
50.25 	auction process may not be used to acquire construction, architectural, or engineering 
50.26 	services. 
50.27 	(b) The provisions of sections 13.591, subdivision 3, and 16C.06, subdivision 2, 
50.28 	do not apply when the commissioner determines that a reverse auction is the appropriate 
50.29 	purchasing process.

50.30 	Sec. 96. Minnesota Statutes 2004, section 16C.16, is amended by adding a subdivision 
50.31 	to read:
50.32 		Subd. 7a. Vehicle purchases.  For purposes of state purchasing, the commissioner 
50.33 	may award a bid preference to motor vehicles manufactured in Minnesota. The amount of 
51.1 	the preference must be the same as the amount of the preference awarded to businesses 
51.2 	located in an economically disadvantaged area.

51.3 	Sec. 97. [16E.21] ACCOUNT.
51.4 		Subdivision 1. The information and telecommunications technology systems and 
51.5 	services account is created in the special revenue fund. Funds deposited in the account 
51.6 	are appropriated to the office of enterprise technology for the purposes of defraying the 
51.7 	costs of personnel and technology for activities that create government efficiencies in 
51.8 	accordance with provisions set forth in this chapter. All expenditures from this account are 
51.9 	subject to the review of the Commissioner's Technology Advisory Board.
51.10 		Subd. 2. Upon agreement of the participating agency, a charge may be collected by 
51.11 	the Office of Enterprise Technology on purchases of information and telecommunications 
51.12 	technology systems and services by state agencies and other governmental entities through 
51.13 	state contracts for purposes described in subdivision 1. Such fees will be deposited in the 
51.14 	information and telecommunications technology systems and services account.

51.15 	Sec. 98. Minnesota Statutes 2004, section 43A.17, subdivision 4, is amended to read:
51.16 		Subd. 4.Exceptions. (a) The commissioner may without regard to subdivision 1 
51.17 	establish special salary rates and plans of compensation designed to attract and retain 
51.18 	exceptionally qualified doctors of medicine and doctors of dental surgery. These rates 
51.19 	and plans shall be included in the commissioner's plan. In establishing salary rates and 
51.20 	eligibility for nomination for payment at special rates, the commissioner shall consider the 
51.21 	standards of eligibility established by national medical specialty boards where appropriate. 
51.22 	The incumbents assigned to these special ranges shall be excluded from the collective 
51.23 	bargaining process.
51.24 	(b) The commissioner may without regard to subdivision 1, but subject to collective 
51.25 	bargaining agreements or compensation plans, establish special salary rates designed to 
51.26 	attract and retain exceptionally qualified employees in the following positions:
51.27 	(1) information systems staff;
51.28 	(2) actuaries in the Departments of Health, Human Services, and Commerce; and
51.29 	(3) epidemiologists in the Department of Health.

51.30 	Sec. 99. Minnesota Statutes 2004, section 43A.316, subdivision 1, is amended to read:
51.31 		Subdivision 1.Intent. The legislature finds that the creation of a statewide 
51.32 	program using best purchasing practices and innovative benefit design and administration
51.33 	to provide public employees, school districts employees,  and other eligible persons 
52.1 	with life insurance and hospital, medical, and dental benefit coverage through provider 
52.2 	organizations would result in a greater utilization more efficient use of government 
52.3 	resources and would advance the health and welfare of the citizens of the state.

52.4 	Sec. 100. Minnesota Statutes 2004, section 43A.316, subdivision 2, is amended to read:
52.5 		Subd. 2.Definitions. For the purpose of this section, the terms defined in this 
52.6 	subdivision have the meaning given them.
52.7 	(a)  Commissioner. "Commissioner" means the commissioner of employee relations. 
52.8 	(b)  Employee. "Employee" means: 
52.9 	(1) a person who is a public employee within the definition of section  179A.03, 
52.10 	subdivision 14, who is insurance eligible and is employed by an eligible employer; 
52.11 	(2) an elected public official of an eligible employer who is insurance eligible;
52.12 	(3) a person employed by a labor organization or employee association certified as 
52.13 	an exclusive representative of employees of an eligible employer or by another public 
52.14 	employer approved by the commissioner, so long as the plan meets the requirements of a 
52.15 	governmental plan under United States Code, title 29, section 1002(32); or
52.16 	(4) a person employed by a county or municipal hospital.
52.17 	(c)  Eligible employer. "Eligible employer" means: 
52.18 	(1) a public employer within the definition of section  179A.03, subdivision 15, that 
52.19 	is a town, county, city, school district as defined in section  120A.05, service cooperative 
52.20 	as defined in section  123A.21, intermediate district as defined in section  136D.01, 
52.21 	Cooperative Center for Vocational Education as defined in section  123A.22, regional 
52.22 	management information center as defined in section  123A.23, or an education unit 
52.23 	organized under the joint powers action, section  471.59; or 
52.24 	(2) an exclusive representative of employees, as defined in paragraph (b);
52.25 	(3) a county or municipal hospital; or
52.26 	(4) another public employer approved by the commissioner.
52.27 	(d)  Exclusive representative. "Exclusive representative" means an exclusive 
52.28 	representative as defined in section  179A.03, subdivision 8. 
52.29 	(e)  Labor-Management Committee. "Labor-Management Committee" means the 
52.30 	committee established by subdivision 4. 
52.31 	(f)  Program. "Program" means the statewide public employees insurance program 
52.32 	created by subdivision 3. 
52.33 	(g) School Employee Insurance Committee. "School Employee Insurance 
52.34 	Committee" means the committee established under subdivision 3, clause (1).

53.1 	Sec. 101. Minnesota Statutes 2004, section 43A.316, subdivision 3, is amended to read:
53.2 		Subd. 3.Public employee insurance program. The commissioner shall be the 
53.3 	administrator of the public employee insurance program and may determine its funding 
53.4 	arrangements. The commissioner shall model the program after the plan established 
53.5 	in section  43A.18, subdivision 2, but may modify adopt variations from that plan, in 
53.6 	consultation with the Labor-Management Committee. The variations may include 
53.7 	different deductibles, coinsurance, co-pays, or other enrollee cost-sharing provisions. The 
53.8 	commissioner, or the commissioner's designated representatives, shall be consulted in 
53.9 	discussions or studies by state agencies related to improving statewide health care quality, 
53.10 	outcomes, and costs. The commissioner may:
53.11 	(1) develop and administer separately or jointly rated programs within the public 
53.12 	employee insurance program, including a separately or jointly rated and administered 
53.13 	program for employees of public school districts, in a separate risk pool. Separate 
53.14 	programs within the public employee insurance program may be pilot or demonstration 
53.15 	programs, or permanent programs.
53.16 	Notwithstanding any other statute, all plan design decisions, including all pilot or 
53.17 	demonstration programs in which school employees participate, must first be developed 
53.18 	by a School Employee Insurance Committee in consultation with the commissioner or the 
53.19 	commissioner's designee and other consultants as the committee sees fit. The committee 
53.20 	must be composed of 14 members who represent school district employees and employers 
53.21 	in equal number. The employee representatives shall be appointed as follows: four shall 
53.22 	be appointed by Education Minnesota, one shall be appointed by the Service Employees 
53.23 	International Union, one shall be appointed by the American Federation of State, County, 
53.24 	and Municipal Employees, and one shall be appointed by the Minnesota School Employees 
53.25 	Association. The seven school employer representatives who serve on the School 
53.26 	Employee Insurance Committee must be appointed by the Minnesota School Boards 
53.27 	Association. Members of the Committee shall be appointed no later than August 1, 2006, 
53.28 	and shall serve at the will of the appointing organization. The School Employee Insurance 
53.29 	Committee members are eligible for compensation and expense reimbursement under 
53.30 	section 15.0575, subdivision 3. In addition, the actual salary lost by a committee member 
53.31 	or cost charged by an employer of a committee member for time missed while performing 
53.32 	the duties of a committee member must be reimbursed to the committee member;
53.33 	(2) develop, implement, and administer demonstration or pilot programs to help 
53.34 	explore methods for improving the effectiveness and value of the public employee 
53.35 	insurance program;
54.1 	(3) conduct evaluations and studies to determine the effectiveness and impact of 
54.2 	pilot, demonstration, or other programs as part of the public employee insurance program;
54.3 	(4) develop, adopt, modify, and implement strategies to control health care costs 
54.4 	and to improve health care outcomes including, but not limited to, health care cost and 
54.5 	quality measurement and reporting strategies, pay-for-performance strategies, value-based 
54.6 	purchasing strategies, use of complementary and alternative care, and other demonstrated 
54.7 	or emerging best practices in health care purchasing;
54.8 	(5) in consultation with the labor management committee in subdivision 4, or the 
54.9 	approval of the School Employee Insurance Committee when proposals apply to the 
54.10 	school employees group, develop, adopt, modify, and administer innovative health benefit 
54.11 	designs, including possible tiered arrangements, high deductible plans with health care 
54.12 	savings accounts, special provider networks, flexible benefit plans, incentive programs for 
54.13 	healthy behaviors and health improvement, and other health benefit designs;
54.14 	(6) temporarily suspend or limit new nonschool entrant groups into the public 
54.15 	employee insurance program if necessary to maintain the quality, effectiveness, and 
54.16 	viability of the program;
54.17 	(7) participate as part of broader community, regional, or national alliances or 
54.18 	initiatives, including joint public-private sector efforts to improve health care purchasing, 
54.19 	health care costs, quality, and outcomes; and
54.20 	(8) develop, implement, and administer a Web site and related capabilities to provide 
54.21 	members and the public with information and a means to make inquiries to the public 
54.22 	employee insurance program. The Web site may include information on the program's 
54.23 	goals and its performance in reaching the goals.

54.24 	Sec. 102. Minnesota Statutes 2004, section 43A.316, is amended by adding a 
54.25 	subdivision to read:
54.26 		Subd. 3a.Health improvement programs. The commissioner is authorized to plan, 
54.27 	develop, purchase, administer, and evaluate disease management and other programs, 
54.28 	strategies, and incentives to improve the health and health outcomes of members. Such 
54.29 	actions with regard to the school employee insurance program shall be made only with the 
54.30 	approval of the School Employee Insurance Committee.

54.31 	Sec. 103. Minnesota Statutes 2004, section 43A.316, subdivision 4, is amended to read:
54.32 		Subd. 4.Labor-Management Committee. The Labor-Management Committee 
54.33 	consists of ten members appointed by the commissioner governor. The Labor-Management 
54.34 	Committee must comprise five members who represent employees, including at least 
55.1 	one retired employee, and five members who represent eligible employers. Committee 
55.2 	members are eligible for expense reimbursement in the same manner and amount as 
55.3 	authorized by the commissioner's plan adopted under section  43A.18, subdivision 2. The 
55.4 	commissioner shall consult with the labor-management committee in major decisions that 
55.5 	affect the program offered to non-school-related public employees. The committee shall 
55.6 	study issues and make recommendations relating to the insurance program including, but 
55.7 	not limited to, flexible benefits, utilization review, quality assessment, and cost efficiency. 
55.8 	The committee continues to exist while the program remains in operation. 

55.9 	Sec. 104. Minnesota Statutes 2004, section 43A.316, subdivision 5, is amended to read:
55.10 		Subd. 5.Public employee participation. (a) Participation in the program is subject 
55.11 	to the conditions in this subdivision.
55.12 	(b) 	A school district as defined in section  120A.05, service cooperative as defined 
55.13 	in section  123A.21, intermediate district as defined in section  136D.01, Cooperative 
55.14 	Center for Vocational Education as defined in section  123A.22, regional management 
55.15 	information center as defined in section  123A.23, or an education unit organized under 
55.16 	a joint powers agreement under section 471.59, which, as of July 1, 2005, employed 
55.17 	fewer than 400 full-time equivalent teachers, which provides health insurance coverage 
55.18 	or contributes money to pay for all or part of the cost of health insurance coverage of 
55.19 	eligible employees, must purchase such coverage through the school employee program 
55.20 	provided by the public buyers group program.
55.21 	(c) 	Each exclusive representative of employees of a type of entity described in 
55.22 	paragraph (b) which, on July 1, 2005, employed 400 or more full-time equivalent 
55.23 	teachers shall determine whether the employees it represents will participate in the school 
55.24 	employee group of the public buyers group program. 
55.25 	(d) School employees who do not enter the program upon first becoming eligible 
55.26 	for participation are ineligible to participate for four years and must be pooled and rated 
55.27 	separately from the school employee group pool for the first four years after entering the 
55.28 	program.
55.29 	(e) The decision of an exclusive representative of school employees or, in the case of 
55.30 	unorganized employees, the decision of a school district, to enter into the public buyers 
55.31 	group program is irrevocable.
55.32 	(b) (f) Each exclusive representative for an eligible employer determines whether the 
55.33 	employees it represents will participate in the program. The exclusive representative shall 
55.34 	give the employer notice of intent to participate at least 30 60 days before the expiration 
55.35 	date of the collective bargaining agreement preceding the collective bargaining agreement 
56.1 	that covers the date of entry into the program. Either all or none of the employees 
56.2 	represented by an exclusive representative who participate in the employer's plan must 
56.3 	participate in the program. The exclusive representative and the eligible employer shall 
56.4 	give notice to the commissioner of the determination to participate in the program at 
56.5 	least 30 60 days before entry into the program. Entry into the program is governed by a 
56.6 	schedule established by the commissioner.
56.7 	(c) (g) Employees not represented by exclusive representatives may become 
56.8 	members of the program upon a determination of an eligible employer to include these 
56.9 	employees in the program. Either all or none of the employer's unrepresented employees 
56.10 	who participate in the employer's plan must participate in the program. The eligible 
56.11 	employer shall give at least 30 60 days' notice to the commissioner before entering 
56.12 	the program. Entry into the program is governed by a schedule established by the 
56.13 	commissioner.
56.14 	(d) (h) For nonschool employee groups, initial participation in the program is for 
56.15 	a two-year three-year term. Participation is automatically renewed for an additional 
56.16 	two-year term unless the exclusive representative, or the employer for unrepresented 
56.17 	employees, gives the commissioner notice of withdrawal at least 30 60 days before 
56.18 	expiration of the participation period. A group that withdraws must wait two years before 
56.19 	rejoining, except with the approval of the commissioner. An exclusive representative, 
56.20 	or employer for unrepresented employees, may also withdraw if premiums increase 
56.21 	50 percent by more than 35 percent in excess of the consumer price index for all urban 
56.22 	consumers or more from one insurance year to the next. The commissioner may modify 
56.23 	the participation requirement as part of a demonstration or pilot effort. Any modifications 
56.24 	must be clearly communicated to all employers who are members of the public buyers 
56.25 	group program, and incorporated into any information about the program, at least 90 days 
56.26 	prior to the change becoming effective. The modifications must apply on an equal basis to 
56.27 	all current and prospective employers enrolled in the program.
56.28 	(e) (i) To improve the stability and effectiveness of the public buyers group program, 
56.29 	the commissioner, in consultation with the Labor-Management Committee and other 
56.30 	experts, may explore mutual gain-sharing arrangements, discounts, incentives, or penalties 
56.31 	for public employers based on the length of their continuous membership in the public 
56.32 	buyers group program and other factors. Any incentives for long-term membership 
56.33 	in the program must be: (1) consistent with the program's goals of maintaining the 
56.34 	overall integrity and viability of the program; (2) consistent with other applicable laws, 
56.35 	rules, and policies; and (3) available to all groups on equal terms. The terms of any 
56.36 	incentives for long-term participation in the program must be clearly communicated to all 
57.1 	employers who are members of the public buyers group program and incorporated into 
57.2 	any information about the program. Any administration of the incentives or changes must 
57.3 	be communicated at least 90 days prior to each employer's renewal date before the change 
57.4 	may become effective. The commissioner, in consultation with the Labor-Management 
57.5 	Committee, shall report to the legislature and the governor by January 15, 2008, and 
57.6 	annually thereafter, on the adequacy of the participation requirement and any special 
57.7 	incentives based on the length of participation in helping maintain the stability and 
57.8 	effectiveness of the public buyers group program.
57.9 	(j) The exclusive representative shall give the employer shall give notice of intent to 
57.10 	withdraw to the commissioner at least 30 60 days before the expiration date of a collective 
57.11 	bargaining agreement that includes the date on which the term of participation expires.
57.12 	(f) (k) Each participating eligible employer shall notify the commissioner of the 
57.13 	names of individuals who will be participating within two weeks of after the commissioner 
57.14 	receiving receives notice of the parties' intent to participate. The employer shall also 
57.15 	submit other information as required by the commissioner for administration of the 
57.16 	program.

57.17 	Sec. 105. Minnesota Statutes 2004, section 43A.316, is amended by adding a 
57.18 	subdivision to read:
57.19 		Subd. 5a.Participating employer rights to data. Employers participating in 
57.20 	the public employee insurance program and employers considering participation in the 
57.21 	public employee insurance program shall not be refused or impeded by the program 
57.22 	in their efforts to obtain the utilization or claims data needed by the employer to seek 
57.23 	alternative bids for insurance coverage. The ability of participating employers to secure 
57.24 	their data for the purposes of seeking alternative bids for coverage exists regardless of 
57.25 	any other program participation requirements or incentives for long-term participation 
57.26 	in the program. Participating employers must not be charged for the report generated to 
57.27 	satisfy this subdivision.

57.28 	Sec. 106. Minnesota Statutes 2004, section 43A.316, is amended by adding a 
57.29 	subdivision to read:
57.30 		Subd. 5b.Nonparticipating school district's bids. Nonparticipating school 
57.31 	districts eligible for the public employee insurance program must request bids for 
57.32 	insurance coverage through the public employee insurance program at least once every 
57.33 	four years. This subdivision does not require school districts eligible for the program to 
58.1 	purchase coverage through the program. Other public employers are encouraged to seek 
58.2 	bids from the public employee insurance program at least once every four years.

58.3 	Sec. 107. Minnesota Statutes 2004, section 43A.316, subdivision 6, is amended to read:
58.4 		Subd. 6.Coverage. (a) By January 1, 1989, The commissioner shall announce the 
58.5 	benefits of the program. The program shall include employee hospital, medical, dental, 
58.6 	and life insurance for employees and hospital and medical benefits for dependents. Health 
58.7 	maintenance organization options and other delivery system options may be provided if 
58.8 	they are available, cost-effective, and capable of servicing the number of people covered 
58.9 	in the program. Participation in optional coverages may be provided by collective 
58.10 	bargaining agreements. For employees not represented by an exclusive representative, the 
58.11 	employer may offer the optional coverages to eligible employees and their dependents 
58.12 	provided in the program.
58.13 	(b) The commissioner, with the assistance of the Labor-Management Committee, 
58.14 	shall periodically assess whether it is financially feasible for the program to offer or to 
58.15 	continue an individual retiree program that has competitive premium rates and benefits. 
58.16 	If the commissioner determines it to be feasible to offer an individual retiree program, 
58.17 	the commissioner shall announce the applicable benefits, premium rates, and terms of 
58.18 	participation. Eligibility to participate in the individual retiree program is governed by 
58.19 	subdivision 8, but applies to retirees of eligible employers that do not participate in the 
58.20 	program and to those retirees' dependents and surviving spouses.

58.21 	Sec. 108. Minnesota Statutes 2004, section 43A.316, subdivision 7, is amended to read:
58.22 		Subd. 7.Premiums. The proportion of premium paid by the employer and 
58.23 	employee is subject to collective bargaining or personnel policies. If, at the beginning of 
58.24 	the coverage period, no collective bargaining agreement has been finalized, the increased 
58.25 	dollar costs, if any, from the previous year is the sole responsibility of the individual 
58.26 	participant until a collective bargaining agreement states otherwise. Premiums, including 
58.27 	an administration fee, shall be established by the commissioner. The commissioner may 
58.28 	rate specific employers separately for premium purposes, if the commissioner determines 
58.29 	that doing so is in the best interests of the program. Each employer shall pay monthly 
58.30 	the amounts due for employee benefits including the amounts under subdivision 8 to the 
58.31 	commissioner no later than the dates established by the commissioner. If an employer 
58.32 	fails to make the payments as required, the commissioner may cancel program benefits 
58.33 	and pursue other civil remedies.

59.1 	Sec. 109. Minnesota Statutes 2004, section 43A.316, subdivision 8, is amended to read:
59.2 		Subd. 8.Continuation of coverage. (a) A former employee of an employer 
59.3 	participating in the program who is receiving a public pension disability benefit or an 
59.4 	annuity or has met the age and service requirements necessary to receive an annuity under 
59.5 	chapter 353, 353C, 354, 354A, 356, 422A, 423, 423A, or 424, and the former employee's 
59.6 	dependents, are eligible to participate in the program. This participation is at the person's 
59.7 	expense unless a collective bargaining agreement or personnel policy provides otherwise. 
59.8 	Premiums for these participants must be established by the commissioner.
59.9 	The commissioner may provide policy exclusions for preexisting conditions 
59.10 	only when there is a break in coverage between a participant's coverage under the 
59.11 	employment-based group insurance program and the participant's coverage under this 
59.12 	section. An employer shall notify an employee of the option to participate under this 
59.13 	paragraph no later than the effective date of retirement. The retired employee or the 
59.14 	employer of a participating group on behalf of a current or retired employee shall notify 
59.15 	the commissioner within 30 days of the effective date of retirement of intent to participate 
59.16 	in the program according to the rules established by the commissioner.
59.17 	(b) The spouse of a deceased employee or former employee may purchase the 
59.18 	benefits provided at premiums established by the commissioner if the spouse was a 
59.19 	dependent under the employee's or former employee's coverage under this section at the 
59.20 	time of the death. The spouse remains eligible to participate in the program as long as 
59.21 	the group that included the deceased employee or former employee participates in the 
59.22 	program spouse chooses to do so. Coverage under this clause must be coordinated with 
59.23 	relevant insurance benefits provided through the federally sponsored Medicare program.
59.24 	(c) The program benefits must continue in the event of strike permitted by section  
59.25 	179A.18, if the exclusive representative chooses to have coverage continue and the 
59.26 	employee pays the total monthly premiums when due. 
59.27 	(d) A participant under this subdivision who discontinues coverage may not reenroll, 
59.28 	except with the permission of the commissioner.
59.29 	(e) Persons participating under these paragraphs this subdivision shall make 
59.30 	appropriate premium payments in the time and manner established by the commissioner.

59.31 	Sec. 110. Minnesota Statutes 2004, section 43A.316, is amended by adding a 
59.32 	subdivision to read:
59.33 		Subd. 9a.Report. The commissioner shall report biennially to the governor and 
59.34 	legislature on March 1 of each odd-numbered year. The report must include information 
59.35 	on membership, finances, operations, effectiveness, and impact of the public employee 
60.1 	insurance program. The report may include discussion of changes and innovations, 
60.2 	particularly with respect to improving health care costs, quality, and outcomes, and any 
60.3 	issues or challenges faced by the program and how they might be addressed. The report 
60.4 	must be posted on a Web site maintained by or for the public employee insurance program, 
60.5 	and must be available to the public.

60.6 	Sec. 111. Minnesota Statutes 2004, section 43A.316, subdivision 10, is amended to 
60.7 	read:
60.8 		Subd. 10.Exemption. The public employee insurance program and, where 
60.9 	applicable, the employers participating in it are exempt from chapters 60A, 62A, 62C, 
60.10 	62D, 62E, and 62H, section  471.617, subdivisions 2 and 3, and the bidding requirements 
60.11 	of section  471.6161.  Nothing in this statute or other statutes, except for the limitations 
60.12 	established in subdivision 3, shall limit the commissioner's ability to develop and test 
60.13 	innovative health insurance benefit designs for the public employee insurance program.

60.14 	Sec. 112. Minnesota Statutes 2004, section 43A.316, is amended by adding a 
60.15 	subdivision to read:
60.16 		Subd. 11.Reinsurance. The commissioner may, on behalf of the program, 
60.17 	participate in an insured or self-insured reinsurance pool.

60.18 	Sec. 113. Minnesota Statutes 2004, section 103D.355, is amended to read:
60.19 	103D.355 ANNUAL AUDIT.
60.20 		Subdivision 1.Requirement. The managers must have an annual audit completed 
60.21 	of the books and accounts of the watershed district. The annual audit may be made by 
60.22 	a private certified public accountant or by the state auditor. The annual audit must be 
60.23 	made by a certified public accountant or the state auditor at least once every five years, or 
60.24 	when cumulative district revenues or expenditures exceed an amount established by the 
60.25 	board in consultation with the state auditor.
60.26 		Subd. 2.Audit by state auditor. (a) If the annual An audit is to be made by the 
60.27 	state auditor, the audit must may be initiated by a petition of the resident owners of the 
60.28 	watershed district or resolution of the managers of the watershed district. The petition 
60.29 	must request an annual audit pursuant to the authority granted municipalities under 
60.30 	sections  6.54 and  6.55. The state auditor may conduct such examinations of accounts and 
60.31 	records as the state auditor may deem the public interest demands.
60.32 	(b) If the audit or examination is made by the state auditor, the watershed 
60.33 	district receiving the examination must pay the state the total cost and expenses of the 
61.1 	examination, including the salaries paid to the examiners while actually engaged in 
61.2 	making the examination. The general fund must be credited with all collections made 
61.3 	for examinations under this subdivision.
61.4 		Subd. 3.Reports for state auditor. The managers must make and submit reports 
61.5 	demanded by the state auditor.

61.6 	Sec. 114. Minnesota Statutes 2005 Supplement, section 123B.02, subdivision 23, 
61.7 	is amended to read:
61.8 		Subd. 23.Credit cards. A board may authorize the use of a credit card by any 
61.9 	officer or employee otherwise authorized to make a purchase on behalf of the district. 
61.10 	If a district officer or employee makes or directs a purchase by credit card that is not 
61.11 	approved by the school board, the officer or employee is personally liable for the amount 
61.12 	of the purchase. A purchase by credit card must otherwise comply with all statutes, rules, 
61.13 	or district policy applicable to school district purchases. If the board authorizes use of 
61.14 	a credit card to pay for a meal, the card may be used only to pay for a meal by the one 
61.15 	person that the board authorizes to use the credit card. 

61.16 	Sec. 115. [138.912] POET LAUREATE.
61.17 	The governor may appoint a state poet laureate. The Minnesota Humanities 
61.18 	Commission may solicit nominations and make recommendations to the governor for the 
61.19 	poet laureate appointment. The person appointed as poet laureate continues to serve in this 
61.20 	position until the governor appoints another person. Any expenses associated with the 
61.21 	poet laureate must be paid from nonstate sources.

61.22 	Sec. 116. Minnesota Statutes 2005 Supplement, section 157.16, subdivision 3a, 
61.23 	is amended to read:
61.24 		Subd. 3a.Statewide hospitality fee. Every person, firm, or corporation that 
61.25 	operates a licensed boarding establishment, food and beverage service establishment, 
61.26 	seasonal temporary or permanent food stand, special event food stand, mobile food unit, 
61.27 	food cart, resort, hotel, motel, or lodging establishment in Minnesota must submit to the 
61.28 	commissioner a $35 annual statewide hospitality fee for each licensed activity. The fee 
61.29 	for establishments licensed by the Department of Health is required at the same time the 
61.30 	licensure fee is due. For establishments licensed by local governments, the fee is due by 
61.31 	July 1 of each year. This fee does not apply to: 
61.32 	(1) a public school, as defined in section 120A.05, subdivisions 9, 11, 13, and 17; 
62.1 	(2) a nonpublic school that is accredited by an accrediting agency recognized 
62.2 	according to section 123B.445 or recognized by the commissioner; and 
62.3 	(3) a charter school created under section 124D.10.

62.4 	Sec. 117. Minnesota Statutes 2005 Supplement, section 161.1419, subdivision 8, 
62.5 	is amended to read:
62.6 		Subd. 8.Expiration. The commission expires on June 30, 2007 2012.

62.7 	Sec. 118. [181.9456] LEAVE FOR ORGAN DONATION.
62.8 		Subdivision 1.Definitions.  (a) For the purposes of this section, the following terms 
62.9 	have the meanings given to them in this subdivision. 
62.10 	(b) "Employee" means a person who performs services for hire for a public 
62.11 	employer, for an average of 20 or more hours per week, and includes all individuals 
62.12 	employed at any site owned or operated by a public employer. Employee does not include 
62.13 	an independent contractor. 
62.14 	(c) "Employer" means a state, county, city, town, school district, or other 
62.15 	governmental subdivision that employs 20 or more employees. 
62.16 		Subd. 2.Leave. An employer must grant paid leaves of absence to an employee 
62.17 	who seeks to undergo a medical procedure to donate an organ or partial organ to another 
62.18 	person. The combined length of the leaves shall be determined by the employee, but 
62.19 	may not exceed 40 work hours for each donation, unless agreed to by the employer. The 
62.20 	employer may require verification by a physician of the purpose and length of each leave 
62.21 	requested by the employee for organ donation. If there is a medical determination that 
62.22 	the employee does not qualify as an organ donor, the paid leave of absence granted to the 
62.23 	employee prior to that medical determination is not forfeited. 
62.24 		Subd. 3.No employer sanctions. An employer shall not retaliate against an 
62.25 	employee for requesting or obtaining a leave of absence as provided by this section. 
62.26 		Subd. 4. Relationship to other leave.  This section does not prevent an employer 
62.27 	from providing leave for organ donations in addition to leave allowed under this section. 
62.28 	This section does not affect an employee's rights with respect to any other employment 
62.29 	benefit. 

62.30 	Sec. 119. Minnesota Statutes 2004, section 240.25, subdivision 8, is amended to read:
62.31 		Subd. 8.Age under 18 19. A person under the age of 18 19 may not place a bet 
62.32 	or present a pari-mutuel ticket for payment with an approved pari-mutuel system or 
62.33 	participate in card playing at a card club at a licensed racetrack.

63.1 	Sec. 120. Minnesota Statutes 2004, section 270B.14, is amended by adding a 
63.2 	subdivision to read:
63.3 		Subd. 19. Disclosure to Department of Finance.  The commissioner may disclose 
63.4 	to the commissioner of finance returns or return information necessary in order to prepare 
63.5 	a revenue forecast under section 16A.103. 

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

63.7 	Sec. 121. [270C.065] TOLL-FREE ASSISTANCE.
63.8 	The commissioner must maintain toll-free telephone access for taxpayer assistance 
63.9 	from the department for calls from within the state.

63.10 	Sec. 122. [345.495] LOCAL GOVERNMENT CLAIM.
63.11 	If the commissioner determines that the department has custody of property that 
63.12 	belongs to a Minnesota local government unit, the commissioner must pay or transfer the 
63.13 	abandoned property to the local government unit within 20 days of receiving the property 
63.14 	and determining that it belongs to the local government unit.

63.15 	Sec. 123. Minnesota Statutes 2005 Supplement, section 349.15, subdivision 1, is 
63.16 	amended to read:
63.17 		Subdivision 1.Expenditure restrictions. Gross profits from lawful gambling 
63.18 	may be expended only for lawful purposes or allowable expenses as authorized by the 
63.19 	membership of the conducting organization at a monthly meeting of the organization's 
63.20 	membership. Provided that no more than 70 percent of the gross profit less the tax imposed 
63.21 	under section 297E.02, subdivision 1, from bingo, and no more than 60 percent of the 
63.22 	gross profit from other forms of lawful gambling, may be expended biennially during the 
63.23 	term of the license for allowable expenses related to lawful gambling. For licenses issued 
63.24 	after June 30, 2006, compliance with this subdivision will be measured on a biennial basis 
63.25 	that is concurrent with the term of the license. Compliance with this subdivision is a 
63.26 	condition for the renewal of any license beginning on July 1, 2008. For licenses renewed 
63.27 	with an effective date between July 1, 2006, and June 30, 2008, an organization shall 
63.28 	carry forward an amount equal to 15 percent of any positive allowable expense carryover 
63.29 	amount. This balance must be used to offset any future negative expense balance at the 
63.30 	time of license renewal.

63.31 	Sec. 124. Minnesota Statutes 2005 Supplement, section 349.17, subdivision 7, is 
63.32 	amended to read:
64.1 		Subd. 7.Bar bingo. An organization may conduct bar bingo subject to the 
64.2 	following restrictions:
64.3 	(1) the bingo is conducted at a site the organization owns or leases and which has a 
64.4 	license for the sale of intoxicating beverages on the premises under chapter 340A;
64.5 	(2) the bingo is conducted using only bingo paper sheets purchased from a licensed 
64.6 	distributor; and
64.7 	(3) no rent may be paid for a bar bingo occasion; and
64.8 	(4) linked bingo games may not be conducted at a bar bingo occasion.

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

64.10 	Sec. 125. [349.1721] CONDUCT OF PULL-TABS.
64.11 		Subdivision 1.Cumulative or carryover games. The board shall by rule permit 
64.12 	pull-tab games with multiple seals. The board shall also adopt rules for pull-tab games 
64.13 	with cumulative or carryover prizes.
64.14 		Subd. 2.Event games. The board shall by rule permit pull-tab games in which 
64.15 	certain winners are determined by the random selection of one or more bingo numbers or 
64.16 	by another method approved by the board.

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

64.18 	Sec. 126. Minnesota Statutes 2004, section 349.211, subdivision 2a, is amended to read:
64.19 		Subd. 2a.Pull-tab prizes. The maximum prize which may be awarded for any 
64.20 	single pull-tab is $599, not including any cumulative or carryover prizes. Cumulative or 
64.21 	carryover prizes in a pull-tab game shall not exceed $2,500. An organization may not 
64.22 	sell any pull-tab for more than $2.

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

64.24 	Sec. 127. Minnesota Statutes 2004, section 349.2127, subdivision 8, is amended to 
64.25 	read:
64.26 		Subd. 8.Minimum age. (a) A person under the age of 18 19 years may not buy 
64.27 	a pull-tab, tipboard ticket, paddlewheel ticket, or raffle ticket, or a chance to participate 
64.28 	in a bingo game other than (1) a bingo game exempt or excluded from licensing, or (2) 
64.29 	one bingo occasion conducted by a licensed organization as part of an annual community 
64.30 	event if the person under age 18 is accompanied by a parent or guardian. Violation of 
64.31 	this paragraph is a misdemeanor.
65.1 	(b) A licensed organization or employee may not allow a person under age 18 19 to 
65.2 	participate in lawful gambling in violation of paragraph (a). Violation of this paragraph 
65.3 	is a misdemeanor.
65.4 	(c) In a prosecution under paragraph (b), it is a defense for the defendant to prove by 
65.5 	a preponderance of the evidence that the defendant reasonably and in good faith relied 
65.6 	upon representations of proof of age authorized in section  340A.503, subdivision 6, 
65.7 	paragraph (a). 

65.8 	Sec. 128. Minnesota Statutes 2004, section 349A.12, subdivision 1, is amended to read:
65.9 		Subdivision 1.Purchase by minors. A person under the age of 18 19 years may 
65.10 	not buy or redeem for a prize a ticket in the state lottery.

65.11 	Sec. 129. Minnesota Statutes 2004, section 349A.12, subdivision 2, is amended to read:
65.12 		Subd. 2.Sale to minors. A lottery retailer may not sell and a lottery retailer or 
65.13 	other person may not furnish or redeem for a prize a ticket in the state lottery to any 
65.14 	person under the age of 18 19 years. It is an affirmative defense to a charge under this 
65.15 	subdivision for the lottery retailer or other person to prove by a preponderance of the 
65.16 	evidence that the lottery retailer or other person reasonably and in good faith relied upon 
65.17 	representation of proof of age described in section  340A.503, subdivision 6, in making the 
65.18 	sale or furnishing or redeeming the ticket. 

65.19 	Sec. 130. Minnesota Statutes 2004, section 349A.12, subdivision 5, is amended to read:
65.20 		Subd. 5.Exceptions. Nothing in this chapter prohibits giving a state lottery ticket 
65.21 	as a gift, provided that a state lottery ticket may not be given to a person under the age 
65.22 	of 18 19.

65.23 	Sec. 131. [353.95] ACCOUNTS FOR POSTEMPLOYMENT BENEFITS.
65.24 		Subdivision 1.Establishment. The Public Employees Retirement Association 
65.25 	must establish two funds that political subdivisions may use to hold money to pay for 
65.26 	postemployment benefits owed to officers and employees after termination of service. One 
65.27 	of the funds must provide that each account within the fund is irrevocable, and that money 
65.28 	may be withdrawn only as permitted in this section. The other fund must provide that a 
65.29 	political subdivision may revoke its account within the fund and withdraw some or all of 
65.30 	the money in its account for any reason. All money in the two funds is appropriated to the 
65.31 	Public Employees Retirement Association for purposes of this section.
65.32 		Subd. 2.Definitions. For purposes of this section:
66.1 	(1) "political subdivision" means any entity authorized by section 471.61 to provide 
66.2 	benefits to its retired officers and employees; 
66.3 	(2) "postemployment benefit" means a benefit giving rise to a liability under 
66.4 	Statement 45 of the Government Accounting Standards Board, thereby excluding benefits 
66.5 	to be paid by a Minnesota public pension plan listed in section 356.20, subdivision 2, 
66.6 	or 356.30, subdivision 3, and benefits provided on a defined contribution, individual 
66.7 	account basis; and 
66.8 	(3) "plan administrator" means a third-party agent or administrator handling the 
66.9 	payment benefits on behalf of the political subdivision consistent with the requirements of 
66.10 	the Government Accounting Standards Board.
66.11 		Subd. 3.Exclusivity. After the effective date of this section, except as authorized in 
66.12 	this section, a political subdivision may not establish a trust or equivalent arrangement 
66.13 	to pay for postemployment benefits owed to officers and employees after termination of 
66.14 	service. This section shall not affect an employer's ability to contribute to individual 
66.15 	medical savings or reimbursement accounts that are given preferential tax treatment under 
66.16 	the Internal Revenue Code, and established for the benefit of current or former employees 
66.17 	or officers.
66.18 		Subd. 4.Account maintenance and investment. (a) A political subdivision 
66.19 	may establish an account in one or both of the funds created in this section. The Public 
66.20 	Employees Retirement Association shall maintain a separate account within each fund for 
66.21 	each participating political subdivision. The Public Employees Retirement Association 
66.22 	may charge participating political subdivisions fees for reasonable administrative costs, 
66.23 	and the amount of those fees is appropriated to the association from the accounts. The 
66.24 	Public Employees Retirement Association may establish other terms and conditions for 
66.25 	participation in the funds.
66.26 	(b) The Public Employees Retirement Association must certify all money in the 
66.27 	funds to the State Board of Investment for investment in the combined investment funds 
66.28 	established in section 11A.14. Investment earnings must be credited to the account of each 
66.29 	individual political subdivision.
66.30 		Subd. 5.Limit on deposit in revocable account. A political subdivision may not 
66.31 	deposit money in a revocable account if the deposit would cause the total amount in 
66.32 	the political subdivision's revocable and irrevocable accounts to exceed the political 
66.33 	subdivision's actuarially determined liabilities for postretirement benefits due to officers 
66.34 	and employees, as determined under standards of the Government Accounting Standards 
66.35 	Board.
67.1 		Subd. 6.Withdrawal of funds and termination of account. (a) For a revocable 
67.2 	account, a political subdivision may withdraw some or all of its money or terminate the 
67.3 	account for any reason. Money withdrawn from a revocable account must be deposited 
67.4 	in a fund separate and distinct from any other funds of the political subdivision, and the 
67.5 	money, with accrued investment earnings, must be used only to pay postemployment 
67.6 	benefits to former officers and employees.
67.7 	(b) For an irrevocable account: 
67.8 	(1) the plan administrator may withdraw money only as needed to pay 
67.9 	postemployment benefits owed to former officers and employees of the political 
67.10 	subdivision; or 
67.11 	(2) the political subdivision may withdraw money only to the extent the political 
67.12 	subdivision's actuarial liability is satisfied or otherwise defeased.
67.13 	(c) A plan administrator or political subdivision requesting withdrawal of money 
67.14 	from an account created under this section must do so at a time and in the manner required 
67.15 	by the executive director of the Public Employees Retirement Association. The executive 
67.16 	director must ensure that withdrawals comply with the requirements of this section.
67.17 		Subd. 7.Status of irrevocable fund. (a) All money in the irrevocable fund created 
67.18 	in this section are held in trust for the exclusive benefit of former officers and employees 
67.19 	of the participating political subdivisions and are not subject to claims by creditors of 
67.20 	the state, the participating political subdivisions, or the current and former officers and 
67.21 	employees of those political subdivisions.
67.22 	(b) The irrevocable fund created in this section shall be deemed an arrangement 
67.23 	equivalent to a trust for all legal purposes.

67.24 	Sec. 132. Minnesota Statutes 2004, section 375.101, subdivision 1, is amended to read:
67.25 		Subdivision 1.Option for filling vacancies; election in 30 to 60 days. Except as 
67.26 	provided in subdivision 3, a vacancy in the office of county commissioner shallmay be 
67.27 	filled as provided in this subdivision and subdivision 2, or as provided in subdivision 4. If 
67.28 	the vacancy is to be filled under this subdivision and subdivision 2, it must be filled at 
67.29 	a special election not less than 30 nor more than 60 days after the vacancy occurs. The 
67.30 	special primary or special election may be held on the same day as a regular primary or 
67.31 	regular election but the special election shall be held not less than 14 days after the special 
67.32 	primary. The person elected at the special election shall take office immediately after 
67.33 	receipt of the certificate of election and upon filing the bond and taking the oath of office 
67.34 	and shall serve the remainder of the unexpired term. If the county has been reapportioned 
68.1 	since the commencement of the term of the vacant office, the election shall be based 
68.2 	on the district as reapportioned.

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

68.4 	Sec. 133. Minnesota Statutes 2004, section 375.101, is amended by adding a 
68.5 	subdivision to read:
68.6 		Subd. 4.Option for filling vacancies; appointment. Except as provided in 
68.7 	subdivision 3, and as an alternative to the procedure provided in subdivisions 1 and 2, 
68.8 	a vacancy due to death in the office of county commissioner may be filled by board 
68.9 	appointment at a regular or special meeting. The appointment shall be evidenced by a 
68.10 	resolution entered in the minutes and shall continue until an election is held under this 
68.11 	subdivision. All elections to fill vacancies shall be for the unexpired term. If the vacancy 
68.12 	occurs before the first day to file affidavits of candidacy for the next county general 
68.13 	election and more than two years remain in the unexpired term, a special election shall be 
68.14 	held in conjunction with the county general election. The appointed person shall serve 
68.15 	until the qualification of the successor elected to fill the unexpired part of the term at 
68.16 	that special election. If the vacancy occurs on or after the first day to file affidavits of 
68.17 	candidacy for the county general election, or when less than two years remain in the 
68.18 	unexpired term, there shall be no special election to fill the vacancy and the appointed 
68.19 	person shall serve the remainder of the unexpired term and until a successor is elected 
68.20 	and qualifies at the county general election.

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

68.22 	Sec. 134. Minnesota Statutes 2004, section 375.171, is amended to read:
68.23 	375.171 CREDIT CARDS.
68.24 	A county board may authorize the use of a credit card by any county officer or 
68.25 	employee otherwise authorized to make a purchase on behalf of the county. If a county 
68.26 	officer or employee makes a purchase by credit card that is not approved by the county 
68.27 	board, the officer or employee is personally liable for the amount of the purchase. A 
68.28 	purchase by credit card must otherwise comply with all statutes, rules, or county policy 
68.29 	applicable to county purchases. If the board authorizes use of a credit card to pay for a 
68.30 	meal, the card may be used only to pay for a meal eaten by the one person that the board 
68.31 	authorizes to use the credit card. 

69.1 	Sec. 135. Minnesota Statutes 2004, section 394.36, is amended by adding a subdivision 
69.2 	to read:
69.3 		Subd. 4.Ownership of lot or parcel not relevant. A county shall not refuse to 
69.4 	issue a permit for construction of a single-family residence based upon the common 
69.5 	ownership of a contiguous nonconforming lot or parcel, provided that contiguous 
69.6 	nonconforming lots or parcels under the same ownership contain no more than three 
69.7 	residential structures. A conforming lot or parcel of land shall retain its conforming 
69.8 	status regardless of the ownership of title to an adjoining nonconforming lot or parcel of 
69.9 	land. Nothing in this subdivision shall be construed to prohibit the application of other 
69.10 	applicable statutes, ordinances, or regulations in furtherance of health, safety, or welfare, 
69.11 	nor allow an increase in the nonconformity of a lot or parcel. A county shall not prohibit 
69.12 	the sale of a residential lot or parcel based upon the common ownership of a contiguous 
69.13 	nonconforming lot or parcel. The provisions of this subdivision shall apply to lots and 
69.14 	parcels defined as shoreland within the meaning of section 103F.205.

69.15 	Sec. 136. Minnesota Statutes 2005 Supplement, section 462.357, subdivision 1e, 
69.16 	is amended to read:
69.17 		Subd. 1e.Nonconformities. (a) Any nonconformity, including the lawful use or 
69.18 	occupation of land or premises existing at the time of the adoption of an additional control 
69.19 	under this chapter, may be continued, including through repair, replacement, restoration, 
69.20 	maintenance, or improvement, but not including expansion, unless:
69.21 	(1) the nonconformity or occupancy is discontinued for a period of more than one 
69.22 	year; or
69.23 	(2) any nonconforming use is destroyed by fire or other peril to the extent of greater 
69.24 	than 50 percent of its market value, and no building permit has been applied for within 
69.25 	180 days of when the property is damaged. In this case, a municipality may impose 
69.26 	reasonable conditions upon a building permit in order to mitigate any newly created 
69.27 	impact on adjacent property.
69.28 	(b) Any subsequent use or occupancy of the land or premises shall be a conforming 
69.29 	use or occupancy. A municipality may, by ordinance, permit an expansion or impose upon 
69.30 	nonconformities reasonable regulations to prevent and abate nuisances and to protect the 
69.31 	public health, welfare, or safety. This subdivision does not prohibit a municipality from 
69.32 	enforcing an ordinance that applies to adults-only bookstores, adults-only theaters, or 
69.33 	similar adults-only businesses, as defined by ordinance.
69.34 	(c) Notwithstanding paragraph (a), a municipality shall regulate the repair, 
69.35 	replacement, maintenance, improvement, or expansion of nonconforming uses and 
70.1 	structures in floodplain areas to the extent necessary to maintain eligibility in the National 
70.2 	Flood Insurance Program and not increase flood damage potential or increase the degree 
70.3 	of obstruction to flood flows in the floodway.
70.4 	(d) A municipality shall not refuse to issue a permit for construction of 
70.5 	a single-family residence based upon the common ownership of a contiguous 
70.6 	nonconforming lot or parcel, provided that contiguous nonconforming lots or parcels 
70.7 	under the same ownership contain no more than three residential structures. A conforming 
70.8 	lot or parcel of land shall retain its conforming status regardless of the ownership of title 
70.9 	to an adjoining nonconforming lot or parcel of land. Nothing in this subdivision shall be 
70.10 	construed to prohibit the application of other applicable statutes, ordinances, or regulations 
70.11 	in furtherance of health, safety, or welfare, nor  allow an increase in the nonconformity 
70.12 	of a lot or parcel. A municipality shall not prohibit the sale of a residential lot or parcel 
70.13 	based upon the common ownership of a contiguous nonconforming lot or parcel. The 
70.14 	provisions of this subdivision shall apply to lots and parcels defined as shoreland within 
70.15 	the meaning of section 103F.205.

70.16 	Sec. 137. Minnesota Statutes 2004, section 471.345, subdivision 16, is amended to 
70.17 	read:
70.18 		Subd. 16.Reverse auction. Notwithstanding any other procedural requirements of 
70.19 	this section, a municipality may contract to purchase supplies, materials, and equipment 
70.20 	using an electronic purchasing process in which vendors compete to provide the supplies, 
70.21 	materials, or equipment at the lowest selling price in an open and interactive environment. 
70.22 	A municipality may not use this process to contract for engineering, architectural, or 
70.23 	construction services, as defined by section  16C.02, subdivision 17, or a service contract, 
70.24 	as defined by section  16C.02, subdivision 16. Nothing in this subdivision must be 
70.25 	construed to prohibit a municipality from adopting a resolution, rule, regulation, or 
70.26 	ordinance relating to minimum labor standards under subdivision 7, or procurement from 
70.27 	economically disadvantaged persons under subdivision 8. 

70.28 	Sec. 138. Minnesota Statutes 2004, section 471.345, is amended by adding a 
70.29 	subdivision to read:
70.30 		Subd. 19.Town road construction and maintenance. Notwithstanding any 
70.31 	other procedural requirements of this section, a town may contract for the construction 
70.32 	or maintenance of a town road by agreeing to the terms of an existing contract between 
70.33 	a vendor and a county for road construction or maintenance on an adjoining road if 
71.1 	the existing county contract was made in conformance with all applicable procedural 
71.2 	requirements.

71.3 	Sec. 139. Minnesota Statutes 2004, section 471.345, is amended by adding a 
71.4 	subdivision to read:
71.5 		Subd. 20. Ineligibility.  A person is not eligible to receive a solicitation, be awarded 
71.6 	a contract, or sell any goods or services to a municipality if the person has been convicted 
71.7 	of a crime for knowingly employing illegal aliens in the United States. The person 
71.8 	remains ineligible for five years from the date of the conviction. For purposes of this 
71.9 	section, "person" means a natural person or a business. A business is ineligible under this 
71.10 	section if a natural person who owns more than one-half of the business is convicted of 
71.11 	a crime specified in this section. 

71.12 	EFFECTIVE DATE. This section is effective July 1, 2006, and applies to 
71.13 	solicitations sent and contracts entered into on and after that date. 

71.14 	Sec. 140. Minnesota Statutes 2004, section 471.345, is amended by adding a 
71.15 	subdivision to read:
71.16 		Subd. 21.Used supplies, materials, and equipment. When acquiring supplies, 
71.17 	materials, or equipment, a municipality must consider purchasing used goods if used 
71.18 	goods may result in the best value for the municipality. 

71.19 	Sec. 141. Minnesota Statutes 2004, section 471.382, is amended to read:
71.20 	471.382 CREDIT CARDS.
71.21 	A city council or town board may authorize the use of a credit card by any city or 
71.22 	town officer or employee otherwise authorized to make a purchase on behalf of the city or 
71.23 	town. If a city or town officer or employee makes or directs a purchase by credit card that 
71.24 	is not approved by the city council or town board, the officer or employee is personally 
71.25 	liable for the amount of the purchase. A purchase by credit card must otherwise comply 
71.26 	with all statutes, rules, or city or town policy applicable to city or town purchases. If the 
71.27 	council or board authorizes use of a credit card to pay for a meal, the card may be used 
71.28 	only to pay for a meal eaten by the one person that the council or board authorizes to 
71.29 	use the credit card.

71.30 	Sec. 142. Minnesota Statutes 2005 Supplement, section 471.661, is amended to read:
71.31 	471.661 OUT-OF-STATE TRAVEL.
72.1 	(a) By January 1, 2006, the governing body of each statutory or home rule charter 
72.2 	city, county, school district, regional agency, or other political subdivision, except a town, 
72.3 	must develop a policy that controls travel outside the state of Minnesota for the applicable 
72.4 	elected officials of the relevant unit of government. The policy must be approved by a 
72.5 	recorded vote and specify:
72.6 	(1) when travel outside the state is appropriate;
72.7 	(2) applicable expense limits; and
72.8 	(3) procedures for approval of the travel.
72.9 	(b) A policy adopted under this section must provide that travel outside of the state 
72.10 	of Minnesota may be disapproved by a majority of the members of the governing body 
72.11 	voting on the issue.
72.12 	(c) The policy must be made available for public inspection upon request and 
72.13 	reviewed annually. Subsequent changes to the policy must be approved by a recorded vote.

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

72.15 	Sec. 143. [471.685] LIMIT ON POSTSECONDARY INSTITUTION FEES.
72.16 	A statutory or home rule charter city, county, or town may not impose a fee, 
72.17 	assessment, or similar charge: 
72.18 	(1) on a person, based on the person's status as a student enrolled in a postsecondary 
72.19 	educational institution; or 
72.20 	(2) on a postsecondary educational institution, based on the number of students 
72.21 	attending the postsecondary institution. 

72.22 	Sec. 144. SALE OF STATE LAND.
 72.23 		Subdivision 1.State land sales. The commissioner of administration shall 
72.24 	coordinate with the head of each department or agency having control of state-owned land 
72.25 	to identify and sell at least $2,000,000 of state-owned land. This amount is in addition 
72.26 	to land sales required in Laws 2005, chapter 156, article 2, section 45. Sales should be 
72.27 	completed according to law and as provided in this section as soon as practicable but 
72.28 	no later than June 30, 2007. Notwithstanding Minnesota Statutes, sections 16B.281, 
72.29 	16B.282, 94.09, and 94.10, or any other law to the contrary, the commissioner may offer 
72.30 	land for public sale by only providing notice of lands or an offer of sale of lands to state 
72.31 	departments or agencies, the University of Minnesota, cities, counties, towns, school 
72.32 	districts, or other public entities. 
72.33 		Subd. 2.Anticipated savings.  Notwithstanding Minnesota Statutes, section 
72.34 	94.16, subdivision 3, or other law to the contrary, the amount of the proceeds from the 
73.1 	sale of land under this section that exceeds the actual expenses of selling the land must 
73.2 	be deposited in the general fund, except as otherwise provided by the commissioner of 
73.3 	finance. Notwithstanding Minnesota Statutes, section 94.11 or 16B.283, the commissioner 
73.4 	of finance may establish the timing of payments for land purchased under this section. If 
73.5 	the total of all money deposited into the general fund from the proceeds of the sale of land 
73.6 	under this section is anticipated to be less than $2,000,000, the governor must allocate the 
73.7 	amount of the difference as reductions to general fund operating expenditures for other 
73.8 	executive agencies for the biennium ending June 30, 2007.
73.9 		Subd. 3.Sale of state lands revolving loan fund.  $90,000 is appropriated from 
73.10 	the general fund in fiscal year 2007 to the commissioner of administration for purposes 
73.11 	of paying the actual expenses of selling state-owned lands to achieve the anticipated 
73.12 	savings required in this section. From the gross proceeds of land sales under this section, 
73.13 	the commissioner of administration must cancel the amount of the appropriation in this 
73.14 	subdivision to the general fund by June 30, 2007. 
73.15 		Subd. 4. Additional sale.  Notwithstanding any law to the contrary, the 
73.16 	commissioner of administration must sell the parcel of land, consisting of approximately 
73.17 	16 acres, that is currently undeveloped and is located in the center of the National Sports 
73.18 	Center campus on the north frontage of 105th Avenue NE in Blaine. The commissioner 
73.19 	must deposit proceeds of the sale in the general fund. The sale documents must include 
73.20 	covenants requested by the Minnesota Amateur Sports Commission.

73.21 	Sec. 145. CONVEYANCE OF SURPLUS STATE LAND AT BRAINERD 
73.22 	REGIONAL TREATMENT CENTER.
 73.23 	(a) Notwithstanding Minnesota Statutes, sections 16B.281 to 16B.287, or any other 
73.24 	law, administrative rule, or commissioner's order to the contrary, the commissioner of 
73.25 	administration may convey to a local unit of government for no consideration all or part of 
73.26 	the real property at the Brainerd Regional Treatment Center for public purposes consistent 
73.27 	with the master plan and reuse study. The conveyance must be in a form approved by the 
73.28 	attorney general and subject to Minnesota Statutes, section 16A.695.
73.29 	(b) The commissioner may require the local unit of government to reimburse the 
73.30 	state for all or part of any campus redevelopment funded and completed by the state.
73.31 	(c) Notwithstanding Minnesota Statutes, section 16C.23, the commissioner of 
73.32 	administration may convey to one or more local units of government for no consideration 
73.33 	all or part of the personal property determined by the commissioner of human services to 
73.34 	be no longer needed for human services operations.
74.1 	(d) If a local unit of government sells any property conveyed under this section to a 
74.2 	private entity, the sale must be at fair market value.

74.3 	Sec. 146. REAL ESTATE MANAGEMENT.
 74.4 	By October 1, 2006, the commissioner of administration must issue a request for 
74.5 	proposal, seeking a private entity to assume, at no cost to the state, some or all of the 
74.6 	commissioner's responsibilities for providing real estate management services to state 
74.7 	agencies, including leasing state-owned space under custodial control of the Department 
74.8 	of Administration to state agencies, arranging for leases of non-state-owned space on 
74.9 	behalf of state agencies, relocation of state agencies, and sale and rental of state-owned 
74.10 	property to others. Notwithstanding any law to the contrary, the commissioner may enter 
74.11 	into a contract with a private entity to provide these services, beginning no later than 
74.12 	July 1, 2007. 

74.13 	Sec. 147. RULEMAKING REQUIRED.
 74.14 	(a) This section applies to a state agency, as defined in Minnesota Statutes, section 
74.15 	14.02: 
74.16 	(1) that was required to adopt rules by a law enacted during or since the 2003 
74.17 	legislative session; and
74.18 	(2) that did not publish a notice of intent to adopt rules or a notice of hearing within 
74.19 	the time limit prescribed by Minnesota Statutes, section 14.125, and that therefore lost 
74.20 	the authority to adopt the mandated rules.
74.21 	(b) Notwithstanding the time limit in Minnesota Statutes, section 14.125, an agency 
74.22 	subject to this section must adopt the rules it was mandated to adopt. The agency must 
74.23 	publish a notice of intent to adopt rules or a notice of hearing for rules subject to this 
74.24 	section before January 1, 2007.

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

74.26 	Sec. 148. LABOR AGREEMENTS AND COMPENSATION PLANS.
 74.27 		Subdivision 1. American Federation of State, County and Municipal Employees. 
 74.28 	The labor agreement between the state of Minnesota and the American Federation of State, 
74.29 	County and Municipal Employees, Council 5, approved by the Legislative Coordinating 
74.30 	Commission Subcommittee on Employee Relations on September 14, 2005, is ratified. 
74.31 		Subd. 2. Minnesota Association of Professional Employees.  The labor agreement 
74.32 	between the state of Minnesota and the Minnesota Association of Professional Employees, 
75.1 	approved by the Legislative Coordinating Commission Subcommittee on Employee 
75.2 	Relations on September 14, 2005, is ratified. 
75.3 		Subd. 3. Middle Management Association.  The labor agreement between the state 
75.4 	of Minnesota and the Middle Management Association, approved by the Legislative 
75.5 	Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, 
75.6 	is ratified. 
75.7 		Subd. 4. Minnesota state college faculty.  The labor agreement between the 
75.8 	state of Minnesota and the Minnesota state college faculty, approved by the Legislative 
75.9 	Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, 
75.10 	is ratified. 
75.11 		Subd. 5.American Federation of State, County and Municipal Employees.
 75.12 	The labor agreement between the state of Minnesota and the American Federation of 
75.13 	State, County and Municipal Employees, Council 5, Unit 8, approved by the Legislative 
75.14 	Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, 
75.15 	is ratified.
75.16 		Subd. 6.Managerial plan. The managerial plan, approved by the Legislative 
75.17 	Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, 
75.18 	is ratified.
75.19 		Subd. 7.Commissioner's plan. The commissioner of employee relations' plan 
75.20 	for unrepresented employees, approved by the Legislative Coordinating Commission 
75.21 	Subcommittee on Employee Relations on November 7, 2005, is ratified.
75.22 		Subd. 8.Minnesota Government Engineers Council. The labor agreement 
75.23 	between the state of Minnesota and the Minnesota Government Engineers Council, 
75.24 	approved by the Legislative Coordinating Commission Subcommittee on Employee 
75.25 	Relations on January 10, 2006, is ratified. 
75.26 		Subd. 9.State Residential Schools Education Association. The labor agreement 
75.27 	between the state of Minnesota and the State Residential Schools Education Association, 
75.28 	approved by the Legislative Coordinating Commission Subcommittee on Employee 
75.29 	Relations on January 10, 2006, is ratified. 
75.30 		Subd. 10.Interfaculty Organization. The labor agreement between the state of 
75.31 	Minnesota and the Interfaculty Organization, approved by the Legislative Coordinating 
75.32 	Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. 
75.33 		Subd. 11.Minnesota State University Association of Administrative and Service 
75.34 	Faculty. The labor agreement between the state of Minnesota and the Minnesota State 
75.35 	University Association of Administrative and Service Faculty, approved by the Legislative 
76.1 	Coordinating Commission Subcommittee on Employee Relations on January 10, 2006, 
76.2 	is ratified. 
76.3 		Subd. 12.Office of Higher Education. The compensation plan for unrepresented 
76.4 	employees of the Office of Higher Education, approved by the Legislative Coordinating 
76.5 	Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. 
76.6 		Subd. 13. MnSCU Administrators.  The personnel plan for Minnesota State 
76.7 	Colleges and Universities administrators, approved by the Legislative Coordinating 
76.8 	Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. 
76.9 		Subd. 14. State Board of Investment.  The salary administration plan for the 
76.10 	Minnesota State Board of Investment, approved by the Legislative Coordinating 
76.11 	Commission Subcommittee on Employee Relations on March 1, 2006, is ratified. 
76.12 		Subd. 15. Managerial plan amendment.  The amendment to the managerial plan, 
76.13 	approved by the Legislative Coordinating Commission Subcommittee on Employee 
76.14 	Relations on March 1, 2006, is ratified. 
76.15 		Subd. 16. Commissioner's plan amendment.  The amendment to the 
76.16 	commissioner's plan, approved by the Legislative Coordinating Commission 
76.17 	Subcommittee on Employee Relations on March 1, 2006, is ratified.

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

76.19 	Sec. 149. LIMIT ON GROWTH IN CHANCELLOR'S STAFF.
 76.20 	Notwithstanding Minnesota Statutes, section 136F.40, or any other law to the 
76.21 	contrary, the number of persons employed on the staff of the Office of the Chancellor of 
76.22 	the Minnesota State Colleges and Universities must not exceed the number of persons on 
76.23 	the central office staff as of the effective date of this section.

76.24 	Sec. 150. COMPENSATION FOR PERIOD OF PARTIAL GOVERNMENT 
76.25 	SHUTDOWN.
 76.26 		Subdivision 1.Definitions; coverage. For purposes of this section: 
76.27 	(1) "employee" means a state employee, as defined in Minnesota Statutes, section 
76.28 	43A.02, subdivision 21, who the commissioner determines was prevented from working 
76.29 	because of the partial government shutdown; 
76.30 	(2) "partial government shutdown" means the period from July 1, 2005, through July 
76.31 	14, 2005, during which appropriations needed to fund certain state government functions 
76.32 	had not been enacted; and
76.33 	(3) "commissioner" means the commissioner of employee relations.
77.1 		Subd. 2.Credit for uncompensated hours. (a) The commissioner must determine 
77.2 	the number of hours an employee was prevented from working due to the partial 
77.3 	government shutdown and for which the employee has not been fully paid by the state.
77.4 	(b) An employee's vacation bank must be credited with the number of hours 
77.5 	determined under paragraph (a). Notwithstanding any law or policy to the contrary, an 
77.6 	employee credited with hours under this paragraph may choose to be paid in cash for these 
77.7 	hours, rather than having the hours credited to the employee's vacation bank.
77.8 	(c) If a memorandum of understanding or other agreement or policy provides an 
77.9 	employee with partial compensation for hours not worked due to the partial government 
77.10 	shutdown, compensation provided under that agreement or policy must be subtracted 
77.11 	from compensation in cash or in credit to the employee's vacation bank that otherwise 
77.12 	would be due under this section.
77.13 		Subd. 3.Funds available. Any funds remaining in the senate as of the 2006 
77.14 	adjournment of the legislature will be available to pay for the expenses of this section.

77.15 	EFFECTIVE DATE. This section is effective the day following final enactment. 
77.16 	The commissioner must make payments or credits required by this section within 30 
77.17 	days of the effective date of this section.

77.18 	Sec. 151. MORATORIUM ON STATE FEES.
 77.19 	Notwithstanding any law to the contrary, during the biennium ending June 30, 2007, 
77.20 	an executive branch state agency, including a constitutional office, may not impose a 
77.21 	new fee or increase an existing fee.  For purposes of this section, "fee" has the meaning 
77.22 	given in Minnesota Statutes, section 16A.1283.  This section does not apply to fees listed 
77.23 	in Minnesota Statutes, section 16A.1283, paragraph (b).

77.24 	EFFECTIVE DATE. This section is effective the day following final enactment, 
77.25 	and applies to any new fee or fee increase to be initially imposed after that date, even if 
77.26 	the new fee or fee increase was authorized by a law enacted before that date. 

77.27 	Sec. 152. RESTORATION TASK FORCE ESTABLISHED.
 77.28 		Subdivision 1.Implementation. An implementation and steering task force 
77.29 	is established to develop strategies around the master plan for restoration of Victory 
77.30 	Memorial Drive Historic District, as designated in Minnesota Statutes, section 138.73, 
77.31 	subdivision 26, including, but not limited to, efforts to secure National Register 
77.32 	designation and other efforts to provide funding to preserve and restore the district's 
77.33 	significant historical components and natural features.
78.1 		Subd. 2.Membership. The implementation and steering task force shall consist 
78.2 	of 13 members including: 
78.3 	(1) the director of the Minnesota Historical Society or a designee;
78.4 	(2) the Minneapolis City Council member representing the area;
78.5 	(3) the Robbinsdale City Council member representing the area;
78.6 	(4) the chair of the Hennepin County Board of Commissioners or the chair's 
78.7 	designee;
78.8 	(5) the president of the Minneapolis Park and Recreation Board or the president's 
78.9 	designee;
78.10 	(6) two members from the house of representatives representing the area;
78.11 	(7) two members of the senate representing the area;
78.12 	(8) two citizen representatives appointed by the chair; and
78.13 	(9) two representatives from local veterans organizations appointed by the chair.
78.14 		Subd. 3.Report. The implementation and steering task force shall report its actions 
78.15 	to the appropriate policy committees of the legislature once each biennium.
78.16 		Subd. 4.Staff support. The State Historic Preservation Office of the Minnesota 
78.17 	Historical Society; the Minneapolis Heritage Preservation Commission; the Minneapolis 
78.18 	Department of Public Works; the Minneapolis Department of Grants and Planning; the 
78.19 	Minneapolis Park Board; and the city of Robbinsdale shall provide staff support to the 
78.20 	Victory Memorial Drive Implementation and Steering Task Force.
78.21 		Subd. 5.Compensation. Task force members may be compensated for expenses 
78.22 	according to section 15.0575, subdivision 3.
78.23 		Subd. 6.Sunset. The implementation and steering task force expires on December 
78.24 	31, 2009.

78.25 	Sec. 153. LOCATION OF AGENCIES.
 78.26 	The commissioner of administration must examine current office space lease 
78.27 	arrangements for state councils of color with offices in the metropolitan agency. As soon 
78.28 	as possible, but no later than January 1, 2008, the commissioner must colocate these 
78.29 	councils in one building. In implementing this section, the commissioner must ensure 
78.30 	that the office space will maximize the councils' abilities to share common space and 
78.31 	administrative services, so the councils are able to devote resources, to the greatest extent 
78.32 	possible, to their programmatic duties. In selecting a location for the council offices, 
78.33 	the commissioner must ensure that members of the communities served by the councils 
78.34 	will have convenient access to the councils' offices. After colocation, the councils must 
78.35 	share administrative staff.

79.1 	Sec. 154. SPORTS-THEMED TIPBOARDS.
 79.2 		Subdivision 1.Pilot project. (a) The Gambling Control Board shall conduct a pilot 
79.3 	program involving the conduct of sports-themed tipboards. For purposes of this section, a 
79.4 	"sports-themed tipboard" means a board or placard that is not required to contain a seal, 
79.5 	but for which the winning numbers are determined based upon the last number of the 
79.6 	scores at specified intervals of a professional sporting event. The board is responsible for 
79.7 	administrative costs associated with establishing the pilot project.
79.8 	(b) In conducting the pilot project, the board shall provide for operation procedures, 
79.9 	internal control standards, posted information, records, and reports. The board must also 
79.10 	provide for the award of prizes, method of payout, wagers, determination of winners, 
79.11 	and the specifications of sports-themed tipboards. Cash or merchandise prizes may be 
79.12 	awarded, however, the maximum prize that may be awarded for a sports-themed tipboard 
79.13 	is $500. A chance for a sports-themed tipboard may not be sold for more than $10.
79.14 	(c) Sales of sports-themed tipboards are limited to organizations that are currently 
79.15 	licensed to conduct lawful gambling under Minnesota Statutes, chapter 349. The board 
79.16 	shall select ten sites for the conduct of sports-themed tipboards. In selecting sites, the 
79.17 	board shall maintain geographic balance.
79.18 	(d) The Gambling Control Board and the attorney general may not spend state funds 
79.19 	to defend a lawsuit challenging the legality of the pilot projects. A charitable organization 
79.20 	may not use net proceeds of charitable gambling to defend a lawsuit challenging the 
79.21 	legality of the pilot projects.
79.22 		Subd. 2.Report. The board shall prepare a report to the governor and the 
79.23 	legislature on the results of the pilot project by February 15, 2007. The report must 
79.24 	identify additional costs of the sports-themed tipboards, if any, that would be incurred by 
79.25 	other state government agencies.
79.26 		Subd. 3.Sunset. This section expires January 15, 2007.

79.27 	Sec. 155. INDIAN GAMBLING.
 79.28 	Upon signature of this act, the governor shall request, in writing, to each of the 
79.29 	11 tribal governments in Minnesota, that those tribal governments change their legal 
79.30 	gambling age to 19 years.

79.31 	Sec. 156. REPORTING REQUIREMENTS; STUDY.
 79.32 	The commissioner of revenue and the executive director of the Gambling Control 
79.33 	Board shall conduct a feasibility study pertaining to consolidation and automation of 
80.1 	reporting requirements for lawful gambling activities and shall submit a report with 
80.2 	findings and recommendations to the legislature and the governor by January 31, 2007.

80.3 	Sec. 157. REPORT.
 80.4 	By January 15, 2007, the commissioner of administration shall consult with 
80.5 	organizations listed in Minnesota Statutes, section 16B.33, subdivision 2, and report to the 
80.6 	legislature on the advantages and disadvantages of alternative procedures under which 
80.7 	the state could select a designer for state building projects.

80.8 	Sec. 158. ADVISORY TASK FORCE TO STUDY UNDERAGE MARRIAGE.
 80.9 		Subdivision 1.Advisory task force. An advisory task force is established to study 
80.10 	underage marriage and its impact on the Hmong community, including child abuse and 
80.11 	other legal, social, and educational impacts. The council on Asian-Pacific Minnesotans 
80.12 	shall provide coordination and support services to the task force, including staff support as 
80.13 	required by the task force.
80.14 		Subd. 2.Members. (a) The task force consists of 13 members as follows:
80.15 	(1) two members from the 18th Clan Council, who shall choose the members;
80.16 	(2) two members from the Hmong Cultural Center, who shall choose the members;
80.17 	(3) one Hmong legislator appointed by the speaker of the house;
80.18 	(4) the five members under clauses (1) to (3) shall appoint the following additional 
80.19 	members: one teacher, one law enforcement officer, one attorney, one social worker, and 
80.20 	four members from the Hmong community.
80.21 	(b) The members of the task force shall select a chair, who shall preside and convene 
80.22 	meetings of the task force.
80.23 	(c) The task force shall include a number of women and men to achieve gender 
80.24 	balance.
80.25 		Subd. 3.Community meetings. As part of its study, the task force shall hold 
80.26 	four public meetings to receive information and input. Two meetings must be held in 
80.27 	the metropolitan area and two must be held in outstate Minnesota in areas with Hmong 
80.28 	population.
80.29 		Subd. 4.Report. On or before February 15, 2007, the task force shall reports its 
80.30 	findings to the legislature, including recommendations for legislation or other action to 
80.31 	ameliorate the negative impacts of underage marriage in the Hmong community.
80.32 		Subd. 5.Compensation; expiration. Members of the advisory task force must be 
80.33 	compensated by the Council on Asian-Pacific Minnesotans as provided under Minnesota 
80.34 	Statutes, section 15.059. The task force expires May 30, 2007.

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

81.2 	Sec. 159. TELEVISION COVERAGE.
 81.3 	The house of representatives and the senate strongly encourage Twin Cities Public 
81.4 	Television to distribute complete, live gavel-to-gavel television coverage on TPT 17 of all 
81.5 	floor sessions of the house of representatives and the senate.

81.6 	Sec. 160.  REPEALER.
 81.7 	Minnesota Statutes 2004, section 6.56, subdivision 1, is repealed.

81.8 	Sec. 161. EFFECTIVE DATE.
 81.9 	Sections 119, 127 to 130, and 155 are effective the day following final agreement of 
81.10 	the 11 tribal governments to change their legal gambling age to 19.

81.11 	ARTICLE 3
81.12 	ELECTIONS AND CAMPAIGN FINANCE

81.13 	Section 1. Minnesota Statutes 2004, section 10A.01, is amended by adding a 
81.14 	subdivision to read:
81.15 		Subd. 16a.Electioneering communication. "Electioneering communication" 
81.16 	means a broadcast communication that refers to a clearly identified candidate and is 
81.17 	made within 60 days before a general or special election or 30 days before a primary or 
81.18 	special primary for the office sought by the candidate. "Electioneering communication" 
81.19 	does not include:
81.20 	(1) a communication appearing in a news story, commentary, or editorial distributed 
81.21 	by a broadcasting station or newspaper, unless the broadcasting station or newspaper is 
81.22 	owned or controlled by a political party unit, political committee, or candidate;
81.23 	(2) a campaign expenditure; or
81.24 	(3) an independent expenditure.

81.25 	Sec. 2. Minnesota Statutes 2005 Supplement, section 10A.01, subdivision 26, is 
81.26 	amended to read:
81.27 		Subd. 26.Noncampaign disbursement. "Noncampaign disbursement" means 
81.28 	a purchase or payment of money or anything of value made, or an advance of credit 
81.29 	incurred, or a donation in kind received, by a principal campaign committee for any of 
81.30 	the following purposes:
81.31 	(1) payment for accounting and legal services;
82.1 	(2) return of a contribution to the source;
82.2 	(3) repayment of a loan made to the principal campaign committee by that 
82.3 	committee;
82.4 	(4) return of a public subsidy;
82.5 	(5) payment for food, beverages, entertainment, and facility rental for a fund-raising 
82.6 	event;
82.7 	(6) services for a constituent by a member of the legislature or a constitutional officer 
82.8 	in the executive branch, including the costs of preparing and distributing a suggestion or 
82.9 	idea solicitation to constituents, performed from the beginning of the term of office to 
82.10 	adjournment sine die of the legislature in the election year for the office held, and half 
82.11 	the cost of services for a constituent by a member of the legislature or a constitutional 
82.12 	officer in the executive branch performed from adjournment sine die to 60 days after 
82.13 	adjournment sine die;
82.14 	(7) payment for food and beverages consumed by a candidate or volunteers while 
82.15 	they are engaged in campaign activities;
82.16 	(8) payment for food or a beverage consumed while attending a reception or meeting 
82.17 	directly related to legislative duties;
82.18 	(9) payment of expenses incurred by elected or appointed leaders of a legislative 
82.19 	caucus in carrying out their leadership responsibilities;
82.20 	(10) payment by a principal campaign committee of the candidate's expenses for 
82.21 	serving in public office, other than for personal uses;, permitted uses include payment of 
82.22 	costs of travel, lodging, and food in connection with attending a conference, seminar, or 
82.23 	convention related to service in public office;
82.24 	(11) costs of child care for the candidate's children when campaigning;
82.25 	(12) fees paid to attend a campaign school;
82.26 	(13) costs of a postelection party during the election year when a candidate's name 
82.27 	will no longer appear on a ballot or the general election is concluded, whichever occurs 
82.28 	first;
82.29 	(14) interest on loans paid by a principal campaign committee on outstanding loans;
82.30 	(15) filing fees;
82.31 	(16) post-general election thank-you notes or advertisements in the news media;
82.32 	(17) the cost of campaign material purchased to replace defective campaign material, 
82.33 	if the defective material is destroyed without being used;
82.34 	(18) contributions to a party unit;
82.35 	(19) payments for funeral gifts or memorials; and
83.1 	(20) the cost of a magnet less than six inches in diameter containing legislator 
83.2 	contact information and distributed to constituents; and 
83.3 	(21) other purchases or payments specified in board rules or advisory opinions as 
83.4 	being for any purpose other than to influence the nomination or election of a candidate 
83.5 	or to promote or defeat a ballot question.
83.6 	The board must determine whether an activity involves a noncampaign disbursement 
83.7 	within the meaning of this subdivision.
83.8 	A noncampaign disbursement is considered to be made in the year in which the 
83.9 	candidate made the purchase of goods or services or incurred an obligation to pay for 
83.10 	goods or services.

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

83.12 	Sec. 3. Minnesota Statutes 2004, section 10A.14, subdivision 1, is amended to read:
83.13 		Subdivision 1.First registration. The treasurer of a political committee, political 
83.14 	fund, principal campaign committee, or party unit must register with the board by filing 
83.15 	a statement of organization no later than 14 days 48 hours after the committee, fund, 
83.16 	or party unit has made a contribution, received contributions, or made expenditures in 
83.17 	excess of $100.

83.18 	Sec. 4. Minnesota Statutes 2004, section 10A.15, subdivision 5, is amended to read:
83.19 		Subd. 5.Registration number on checks. (a) A contribution made to a candidate 
83.20 	by a lobbyist, political committee, political fund, or party unit must show the name of the 
83.21 	lobbyist, political committee, political fund, or party unit and the number under which it is 
83.22 	registered with the board.
83.23 	(b) A candidate who receives a contribution that lacks the registration number 
83.24 	required by this section is not subject to a fine if the candidate is required to return any 
83.25 	such contribution and does so by January 31 of the calendar year after the year in which 
83.26 	the contribution was received.

83.27 	Sec. 5. [10A.165] COORDINATED ELECTIONEERING COMMUNICATIONS; 
83.28 	CONTRIBUTIONS; EXPENDITURES.
83.29 	If an individual, political committee, political fund, or political party unit makes 
83.30 	an expenditure for an electioneering communication as defined in section 10A.01, 
83.31 	subdivision 16a, that is coordinated with a principal campaign committee or political 
83.32 	party unit, the electioneering communication constitutes a contribution to, and an 
83.33 	expenditure by, the principal campaign committee of the candidate named in the 
84.1 	electioneering communication or of the political party unit whose candidate is named in 
84.2 	the electioneering communication.

84.3 	Sec. 6. Minnesota Statutes 2004, section 10A.20, is amended by adding a subdivision 
84.4 	to read:
84.5 		Subd. 6c.Electioneering communication. An individual, political committee, 
84.6 	political fund, or political party unit that makes an expenditure for an electioneering 
84.7 	communication in an aggregate amount in excess of $500 within 60 days before a general 
84.8 	or special election or 30 days before a primary or special primary for the office sought 
84.9 	by the candidate identified in the electioneering communication must, within 24 hours of 
84.10 	making the expenditure, file a report with the board containing the following information:
84.11 	(1) the amount of each expenditure over $100, the name and address of the person to 
84.12 	whom the expenditure was made, and the purpose of the expenditure;
84.13 	(2) the election or primary to which each electioneering communication pertains and 
84.14 	the name of any candidate to be identified in the electioneering communication; and
84.15 	(3) in the case of a report filed by an individual, the name, address, and employer or 
84.16 	occupation, if self-employed, of the individual making the electioneering communication.
84.17 	An additional report containing the information specified in this subdivision must be 
84.18 	filed within 24 hours after each time an expenditure for an electioneering communication 
84.19 	in an aggregate amount exceeding $500 is made within 60 days before a general or 
84.20 	special election or 30 days before a primary or special primary for the office sought by 
84.21 	the candidate.

84.22 	Sec. 7. Minnesota Statutes 2004, section 10A.20, is amended by adding a subdivision 
84.23 	to read:
84.24 		Subd. 6d.Independent expenditures. (a) An individual, political committee, 
84.25 	political party unit, or political fund must file a report with the board each time the 
84.26 	individual, political committee, political party unit, or political fund makes, at any time up 
84.27 	to and including the 20th day before an election, independent expenditures in an aggregate 
84.28 	amount in excess of $500. The report must be filed within 48 hours after initially making 
84.29 	such expenditures. An additional report must be filed within 48 hours after each time 
84.30 	an independent expenditure in an aggregate amount in excess of $500 is made, up to 
84.31 	and including the 20th day before an election. The report must include the information 
84.32 	required to be reported under subdivision 3, paragraph (g). The report must also indicate 
84.33 	(1) the name and office sought by a candidate named in the independent expenditure and 
85.1 	(2) whether the independent expenditure expressly advocates the candidate's election 
85.2 	or defeat.
85.3 	(b) An individual, political committee, political party unit, or political fund must 
85.4 	file a report with the board each time the individual, political committee, political party 
85.5 	unit, or political fund makes, between the 19th day and the last day before an election, an 
85.6 	independent expenditure in an aggregate amount in excess of $100. The report must be 
85.7 	filed within 24 hours after initially making such expenditures. An additional report must 
85.8 	be filed within 24 hours after making an independent expenditure in an aggregate amount 
85.9 	in excess of $100 at any time up to and including the 20th day before an election. The 
85.10 	report must include the information required to be reported under subdivision 3, paragraph 
85.11 	(g). The report must also indicate (1) the name and office sought by a candidate named 
85.12 	in the independent expenditure and (2) whether the independent expenditure expressly 
85.13 	advocates the candidate's election or defeat. When communicating in an independent 
85.14 	expenditure, individuals, political committees, political funds, political party units, and 
85.15 	any other organization must disclose the full name of the individual or organization and 
85.16 	not an abbreviation of the name that is making the expenditure.

85.17 	Sec. 8. Minnesota Statutes 2004, section 10A.20, is amended by adding a subdivision 
85.18 	to read:
85.19 		Subd. 6e.Encouraging voter participation. (a) An individual, other than 
85.20 	a political committee, a political fund, a political party, a political party unit, or an 
85.21 	association that makes an expenditure to encourage voter registration or get out the vote 
85.22 	efforts in an aggregate amount in excess of $2,000 during a calendar year must, within 24 
85.23 	hours of making such an expenditure, file a report with the board containing:
85.24 	(1) the amount of each expenditure over $500, the name and address of the person to 
85.25 	whom the expenditure was made, and the purpose of the expenditure; and
85.26 	(2) the election or primary to which each expenditure pertains.
85.27 	(b) An additional report containing the information specified in this subdivision 
85.28 	must be filed within 24 hours after each time an expenditure subject to this subdivision is 
85.29 	made during the calendar year.

85.30 	Sec. 9. Minnesota Statutes 2004, section 10A.25, subdivision 2, is amended to read:
85.31 		Subd. 2.Amounts. (a) In a year in which an election is held for an office sought by 
85.32 	a candidate, the principal campaign committee of the candidate must not make campaign 
85.33 	expenditures nor permit approved expenditures to be made on behalf of the candidate that 
85.34 	result in aggregate expenditures in excess of the following:
86.1 	(1) for governor and lieutenant governor, running together, $2,188,090 $2,900,000;
86.2 	(2) for attorney general, $364,690 $480,000;
86.3 	(3) for secretary of state and state auditor, separately, $182,350 $240,000;
86.4 	(4) for state senator, $54,740;
86.5 	(5) for state representative, $28,400.
86.6 	(b) In addition to the amount in paragraph (a), clause (1), a candidate for 
86.7 	endorsement for the office of lieutenant governor at the convention of a political party 
86.8 	may make campaign expenditures and approved expenditures of five percent of that 
86.9 	amount to seek endorsement.
86.10 	(c) If a special election cycle occurs during a general election cycle, expenditures by 
86.11 	or on behalf of a candidate in the special election do not count as expenditures by or on 
86.12 	behalf of the candidate in the general election.
86.13 	(d) The expenditure limits in this subdivision for an office are increased by ten 
86.14 	percent for a candidate who is running for that office for the first time and who has not run 
86.15 	previously for any other office whose territory now includes a population that is more than 
86.16 	one-third of the population in the territory of the new office.

86.17 	Sec. 10. Minnesota Statutes 2004, section 10A.25, subdivision 10, is amended to read:
86.18 		Subd. 10.Effect of opponent's conduct. (a) After the deadline for filing a spending 
86.19 	limit agreement under section  10A.322, a candidate who has agreed to be bound by the 
86.20 	expenditure limits imposed by this section as a condition of receiving a public subsidy 
86.21 	for the candidate's campaign may choose to be released from the expenditure limits but 
86.22 	remain eligible to receive a public subsidy if the candidate has an opponent who has 
86.23 	not agreed to be bound by the limits and has received contributions or made or become 
86.24 	obligated to make expenditures during that election cycle in excess of the following limits: 
86.25 	(1) up to the close of the reporting period before the primary election, receipts 
86.26 	or expenditures equal to 20 percent of the expenditure limit for that office as set forth 
86.27 	in subdivision 2; or
86.28 	(2) after the close of the reporting period before the primary election, cumulative 
86.29 	receipts or expenditures during that election cycle equal to 50 percent of the expenditure 
86.30 	limit for that office as set forth in subdivision 2.
86.31 	Before the primary election, a candidate's "opponents" are only those who will 
86.32 	appear on the ballot of the same party in the primary election.
86.33 	(b) A candidate who has not agreed to be bound by expenditure limits, or the 
86.34 	candidate's principal campaign committee, must file written notice with the board and 
86.35 	provide written notice to any opponent of the candidate for the same office within 24 hours 
87.1 	of exceeding the limits in paragraph (a). The notice must state only that the candidate or 
87.2 	candidate's principal campaign committee has received contributions or made or become 
87.3 	obligated to make campaign expenditures in excess of the limits in paragraph (a).
87.4 	(c) Upon receipt of the notice, a candidate who had agreed to be bound by the limits 
87.5 	may file with the board a notice that the candidate chooses to be no longer bound by the 
87.6 	expenditure limits. A notice of a candidate's choice not to be bound by the expenditure 
87.7 	limits that is based on the conduct of an opponent in the state primary election may not 
87.8 	be filed more than one day after the State Canvassing Board has declared the results 
87.9 	of the state primary.
87.10 	(d) A candidate who has agreed to be bound by the expenditure limits imposed 
87.11 	by this section and whose opponent in the general election has chosen, as provided in 
87.12 	paragraph (c), not to be bound by the expenditure limits because of the conduct of an 
87.13 	opponent in the primary election is no longer bound by the limits but remains eligible to 
87.14 	receive a public subsidy and also receives, or shares equally with any other candidate who 
87.15 	agrees to be bound by limits, the opponent's share of the general account public subsidy 
87.16 	under section 10A.31.
87.17 	A candidate covered by this paragraph is also entitled to the following benefits:
87.18 	(1) the candidate's contribution limits in section 10A.27, subdivision 1, are doubled;
87.19 	(2) the candidate's aggregate limit in section 10A.27, subdivision 2, is 25 times the 
87.20 	maximum individual contribution instead of ten times the maximum contribution; and
87.21 	(3) the candidate is not subject to the aggregate limits in section 10A.27, subdivision 
87.22 	11.

87.23 	Sec. 11. [10A.261] CANDIDATES WHO DECLINE CERTAIN 
87.24 	CONTRIBUTIONS.
87.25 	A candidate who does not accept contributions from political committees or political 
87.26 	funds or from lobbyists may submit to the board a signed statement indicating kinds of 
87.27 	contributors from which the candidate does not accept contributions. The board must 
87.28 	prominently display on its Web site the names of candidates who have filed a statement 
87.29 	indicating that they do not accept contributions from political committees or political 
87.30 	funds. The board must separately prominently display on its Web site the names of 
87.31 	candidates who do not accept contributions from lobbyists. 

87.32 	EFFECTIVE DATE. This section is effective June 1, 2006. 

87.33 	Sec. 12. Minnesota Statutes 2005 Supplement, section 10A.27, subdivision 1, is 
87.34 	amended to read:
88.1 		Subdivision 1.Contribution limits. (a) Except as provided in subdivision 2, 
88.2 	a candidate must not permit the candidate's principal campaign committee to accept 
88.3 	aggregate contributions made or delivered by any individual, political committee, or 
88.4 	political fund in excess of the following:
88.5 	(1) to candidates for governor and lieutenant governor running together, $2,000 in 
88.6 	an election year for the office sought and $500 in other years;
88.7 	(2) to a candidate for attorney general, $1,000 in an election year for the office 
88.8 	sought and $200 in other years;
88.9 	(3) to a candidate for the office of secretary of state or state auditor, $500 in an 
88.10 	election year for the office sought and $100 in other years;
88.11 	(4) to a candidate for state senator, $500 in an election year for the office sought and 
88.12 	$100 in other years; and
88.13 	(5) to a candidate for state representative, $500 in an election year for the office 
88.14 	sought and $100 in the other year; 
88.15 	(6) to a candidate for district court judicial office, $500 in an election year for the 
88.16 	office sought and $100 in other years; and 
88.17 	(7) to a candidate for supreme court justice or court of appeals judge, $1,000 in an 
88.18 	election year for the office sought and $200 in other years.
88.19 	(b) The following deliveries are not subject to the bundling limitation in this 
88.20 	subdivision:
88.21 	(1) delivery of contributions collected by a member of the candidate's principal 
88.22 	campaign committee, such as a block worker or a volunteer who hosts a fund-raising 
88.23 	event, to the committee's treasurer; and
88.24 	(2) a delivery made by an individual on behalf of the individual's spouse.
88.25 	(c) A lobbyist, political committee, political party unit, or political fund must not 
88.26 	make a contribution a candidate is prohibited from accepting.

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

88.28 	Sec. 13. Minnesota Statutes 2004, section 10A.27, subdivision 2, is amended to read:
88.29 		Subd. 2.Political party and dissolving principal campaign committee limit. (a) 
88.30 	A candidate must not permit the candidate's principal campaign committee to accept 
88.31 	contributions from any political party units or dissolving principal campaign committees 
88.32 	in aggregate in excess of ten times the amount that may be contributed to that candidate as 
88.33 	set forth in subdivision 1. 
89.1 	The limitation in this subdivisionparagraph does not apply to a contribution from 
89.2 	a dissolving principal campaign committee of a candidate for the legislature to another 
89.3 	principal campaign committee or committee for federal office of the same candidate.
89.4 	(b) A candidate must not permit the candidate's principal campaign committee to 
89.5 	accept contributions from any political party units in aggregate in excess of the following: 
89.6 	(1) to candidates for governor and lieutenant governor running together, $50,000 in 
89.7 	an election year for the office sought  and $500 in other years; 	
89.8 	(2) to a candidate for attorney general,  $20,000 in an election year for the office 
89.9 	sought  and $200 in other years; 
89.10 	(3) to a candidate for secretary of state or state auditor, $20,000 in an election year 
89.11 	for the office sought  and $100 in other years; and 	 
89.12 	(4) to a candidate for state senator or state representative, $6,000 in an election year 
89.13 	for the office sought and $2,000 in other years.

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

89.15 	Sec. 14. Minnesota Statutes 2004, section 10A.273, subdivision 1, is amended to read:
89.16 		Subdivision 1.Contributions during legislative session. (a) A candidate for the 
89.17 	legislature or for constitutional office, the candidate's principal campaign committee, or 
89.18 	a political committee or party unit established by all or a part of the party organization 
89.19 	within a house of the legislature, must not solicit or accept a contribution from a registered 
89.20 	lobbyist, political committee, political fund, or dissolving principal campaign committee, 
89.21 	or from a party unit established by the party organization within a house of the legislature, 
89.22 	during a regular or special session of the legislature.
89.23 	(b) A registered lobbyist, political committee, political fund, or dissolving principal 
89.24 	campaign committee, or a party unit established by the party organization within a house 
89.25 	of the legislature, must not make a contribution to a candidate for the legislature or 
89.26 	for constitutional office, the candidate's principal campaign committee, or a political 
89.27 	committee or party unit established by all or a part of the party organization within a house 
89.28 	of the legislature during a regular or special session of the legislature.

89.29 	Sec. 15. Minnesota Statutes 2004, section 10A.273, subdivision 2, is amended to read:
89.30 		Subd. 2.Party unit solicitations. A political party unit must not solicit or receive at 
89.31 	an event hosted by a candidate for the legislature or by a candidate for constitutional office 
89.32 	a contribution from a lobbyist, political committee, political fund, or party unit during a 
89.33 	regular or special session of the legislature.

90.1 	Sec. 16. Minnesota Statutes 2004, section 10A.322, subdivision 1, is amended to read:
90.2 		Subdivision 1.Agreement by candidate. (a) As a condition of receiving a public 
90.3 	subsidy, a candidate must sign and file with the board a written agreement in which the 
90.4 	candidate agrees that the candidate will comply with sections  10A.25;  10A.27, subdivision 
90.5 	10;  10A.31, subdivision 7, paragraph (c); and  10A.324. 
90.6 	(b) Before the first day of filing for office, the board must forward agreement forms 
90.7 	to all filing officers. The board must also provide agreement forms to candidates on 
90.8 	request at any time. The candidate must file the agreement with the board by September 
90.9 	1 preceding seven days after the close of filings for the candidate's general election or a 
90.10 	special election held at the general election. An agreement may not be filed after that date. 
90.11 	An agreement once filed may not be rescinded.
90.12 	(c) The board must notify the commissioner of revenue of any agreement signed 
90.13 	under this subdivision.
90.14 	(d) Notwithstanding paragraph (b), if a vacancy occurs that will be filled by means 
90.15 	of a special election and the filing period does not coincide with the filing period for the 
90.16 	general election, a candidate may sign and submit a spending limit agreement not later 
90.17 	than the day after the candidate files the affidavit of candidacy or nominating petition 
90.18 	for the office.

90.19 	Sec. 17. Minnesota Statutes 2004, section 10A.322, subdivision 4, is amended to read:
90.20 		Subd. 4.Refund receipt forms; penalty. The board must make available to a 
90.21 	political party on request and to any candidate for whom an agreement under this section 
90.22 	is effective, a supply of official refund receipt forms that state in boldface type that (1) 
90.23 	a contributor who is given a receipt form is eligible to claim a refund as provided in 
90.24 	section  290.06, subdivision 23, and (2) if the contribution is to a candidate, that the 
90.25 	candidate has signed an agreement to limit campaign expenditures as provided in this 
90.26 	section. The forms must provide duplicate copies of the receipt to be attached to the 
90.27 	contributor's claim. A candidate who does not sign an agreement under this section and 
90.28 	who willfully issues an official refund receipt form or a facsimile of one to any of the 
90.29 	candidate's contributors is guilty of a misdemeanor. A political party organization within 
90.30 	a house of the legislature that accepts aggregate contributions in excess of $25,000 from 
90.31 	one individual loses eligibility to participate in the refund receipt program upon doing so 
90.32 	and must immediately stop issuing refund receipt forms for the remainder of the calendar 
90.33 	year. An individual may not donate more than $25,000 in the aggregate in a calendar year 
90.34 	to a political committee or political fund.

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

91.1 	Sec. 18. [123B.022] PROHIBITING SCHOOL EMPLOYEES FROM USING 
91.2 	PUBLIC RESOURCES FOR ADVOCACY; ENDORSING TIMELY AND 
91.3 	CURRENT FACTUAL INFORMATION.
91.4 	(a) A school board must adopt and implement a districtwide policy that prohibits 
91.5 	district employees from using district funds or other publicly funded district resources, 
91.6 	including time, materials, equipment, facilities, and communication technologies, among 
91.7 	other resources, to advocate for electing or defeating a candidate, passing or defeating 
91.8 	a ballot question, or passing or defeating pending legislation.  The policy must apply 
91.9 	when the employee performs the duties assigned to the employee under the employee's 
91.10 	employment contract with the district, and includes the periods when the employee 
91.11 	represents the district in an official capacity, among other duties.  The policy must not 
91.12 	apply when an employee disseminates factual information consistent with the employee's 
91.13 	contractual duties. 
91.14 	(b) The school board must provide the district's electorate with timely factual and 
91.15 	unbiased information about a pending ballot question. 

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

91.17 	Sec. 19. Minnesota Statutes 2005 Supplement, section 201.061, subdivision 3, is 
91.18 	amended to read:
91.19 		Subd. 3.Election day registration. (a) An individual who is eligible to vote may 
91.20 	register on election day by appearing in person at the polling place for the precinct in 
91.21 	which the individual maintains residence, by completing a registration application, making 
91.22 	an oath in the form prescribed by the secretary of state and providing proof of residence. 
91.23 	An individual may prove residence for purposes of registering by:
91.24 	(1) presenting a driver's license or Minnesota identification card issued pursuant 
91.25 	to section 171.07;
91.26 	(2) presenting any document approved by the secretary of state as proper 
91.27 	identification;
91.28 	(3) presenting one of the following:
91.29 	(i) a current valid student identification card from a postsecondary educational 
91.30 	institution in Minnesota, if a list of students from that institution has been prepared under 
91.31 	section 135A.17 and certified to the county auditor in the manner provided in rules of 
91.32 	the secretary of state; or
91.33 	(ii) a current student fee statement that contains the student's valid address in the 
91.34 	precinct together with a picture identification card; or
92.1 	(4) having a voter who is registered to vote in the precinct, or who is an employee 
92.2 	employed by and working in a residential facility in the precinct and vouching for a 
92.3 	resident in the facility, sign an oath in the presence of the election judge vouching that 
92.4 	the voter or employee personally knows that the individual is a resident of the precinct. 
92.5 	A voter who has been vouched for on election day may not sign a proof of residence 
92.6 	oath vouching for any other individual on that election day. A voter who is registered to 
92.7 	vote in the precinct may sign up to 15 five proof-of-residence oaths on any election day. 
92.8 	This limitation does not apply to an employee of a residential facility described in this 
92.9 	clause. The secretary of state shall provide a form for election judges to use in recording 
92.10 	the number of individuals for whom a voter signs proof-of-residence oaths on election 
92.11 	day. The form must include space for the maximum number of individuals for whom a 
92.12 	voter may sign proof-of-residence oaths. For each proof-of-residence oath, the form 
92.13 	must include a statement that the voter is registered to vote in the precinct, personally 
92.14 	knows that the individual is a resident of the precinct, and is making the statement on 
92.15 	oath. The form must include a space for the voter's printed name, signature, telephone 
92.16 	number, and address.
92.17 	The oath required by this subdivision and Minnesota Rules, part 8200.9939, must 
92.18 	be attached to the voter registration application and the information on the oath must be 
92.19 	recorded on the records of both the voter registering on election day and the voter who 
92.20 	is vouching for the person's residence, and entered into the statewide voter registration 
92.21 	system by the county auditor when the voter registration application is entered into that 
92.22 	system.
92.23 	(b) The operator of a residential facility shall prepare a list of the names of its 
92.24 	employees currently working in the residential facility and the address of the residential 
92.25 	facility. The operator shall certify the list and provide it to the appropriate county auditor 
92.26 	no less than 20 days before each election for use in election day registration.
92.27 	(c) "Residential facility" means transitional housing as defined in section 256E.33, 
92.28 	subdivision 1; a supervised living facility licensed by the commissioner of health under 
92.29 	section 144.50, subdivision 6; a nursing home as defined in section 144A.01, subdivision 
92.30 	5; a residence registered with the commissioner of health as a housing with services 
92.31 	establishment as defined in section 144D.01, subdivision 4; a veterans home operated by 
92.32 	the board of directors of the Minnesota Veterans Homes under chapter 198; a residence 
92.33 	licensed by the commissioner of human services to provide a residential program as 
92.34 	defined in section 245A.02, subdivision 14; a residential facility for persons with a 
92.35 	developmental disability licensed by the commissioner of human services under section 
92.36 	252.28; group residential housing as defined in section 256I.03, subdivision 3; a shelter 
93.1 	for battered women as defined in section 611A.37, subdivision 4; or a supervised 
93.2 	publicly or privately operated shelter or dwelling designed to provide temporary living 
93.3 	accommodations for the homeless.
93.4 	(d) For tribal band members, an individual may prove residence for purposes of 
93.5 	registering by:
93.6 	(1) presenting an identification card issued by the tribal government of a tribe with a 
93.7 	reservation  and recognized by the Bureau of Indian Affairs, United States Department of 
93.8 	the Interior, that contains the name, address, signature, and picture of the individual; or
93.9 	(2) presenting an identification card issued by the tribal government of a tribe with a 
93.10 	reservation  and recognized by the Bureau of Indian Affairs, United States Department 
93.11 	of the Interior, that contains the name, signature, and picture of the individual and also 
93.12 	presenting one of the documents listed in Minnesota Rules, part 8200.5100, subpart 2, 
93.13 	item B.
93.14 	(e) A county, school district, or municipality may require that an election judge 
93.15 	responsible for election day registration initial each completed registration application.

93.16 	Sec. 20. Minnesota Statutes 2004, section 204B.14, subdivision 5, is amended to read:
93.17 		 Subd. 5.Precinct boundaries; description; maps. When If  a precinct boundary 
93.18 	has been changed, or an annexation has occurred affecting a precinct boundary, the 
93.19 	municipal clerk shall immediately notify the county auditor and secretary of state.  
93.20 	The municipal clerk shall file a corrected base map with the secretary of state and 
93.21 	county auditor within 30 days after the boundary change was made or, in the case of an 
93.22 	annexation, the later of:  (1) 30 days after the approval of the annexation order; or (2) the 
93.23 	effective date of the annexation order.  Upon request, the secretary of state county auditor 
93.24 	shall provide a base map and precinct finder to the municipal clerk. The secretary of 
93.25 	state shall update the precinct boundary database, prepare a corrected precinct map, and 
93.26 	provide the corrected precinct map to the county auditor and the municipal clerk who shall 
93.27 	make them available for public inspection. The municipal clerk shall prepare a corrected 
93.28 	precinct map and provide the corrected map to the county auditor, who shall correct the 
93.29 	precinct finder in the statewide voter registration system and make the corrected map and 
93.30 	precinct finder available for public inspection, and to the secretary of state, who shall 
93.31 	update the precinct boundary database. The county auditor shall prepare and file precinct 
93.32 	boundary maps for precincts in unorganized territories in the same manner as provided 
93.33 	for precincts in municipalities.  For every election held in the municipality the election 
93.34 	judges shall be furnished precinct maps as provided in section 201.061, subdivision 6.  If a 
93.35 	municipality changes the boundary of an election precinct, or if an annexation affecting a 
94.1 	precinct boundary occurs, the county auditor shall notify each school district with territory 
94.2 	affected by the boundary change at least 30 days before the effective date of the change.

94.3 	Sec. 21. Minnesota Statutes 2005 Supplement, section 204B.16, subdivision 1, is 
94.4 	amended to read:
94.5 		Subdivision 1.Authority; location. The governing body of each municipality 
94.6 	and of each county with precincts in unorganized territory shall designate by ordinance 
94.7 	or resolution a polling place for each election precinct. This designation may be made 
94.8 	no more frequently than once in any 12-month period for each precinct, subject to the 
94.9 	provisions of subdivision 3, except that a town may designate a different polling place for 
94.10 	town elections held in March from the polling place used for a state or federal primary or 
94.11 	general election. Polling places must be designated and ballots must be distributed so that 
94.12 	no one is required to go to more than one polling place to vote in a school district and 
94.13 	municipal election held on the same day. The polling place for a precinct in a city or in 
94.14 	a school district located in whole or in part in the metropolitan area defined by section 
94.15 	200.02, subdivision 24, shall be located within the boundaries of the precinct or within 
94.16 	3,000 feet of one of those boundaries unless a single polling place is designated for a 
94.17 	city pursuant to section 204B.14, subdivision 2, or a school district pursuant to section 
94.18 	205A.11. The polling place for a precinct in unorganized territory may be located outside 
94.19 	the precinct at a place which is convenient to the voters of the precinct. If no suitable 
94.20 	place is available within a town or within a school district located outside the metropolitan 
94.21 	area defined by section 200.02, subdivision 24, then the polling place for a town or school 
94.22 	district may be located outside the town or school district within five miles of one of the 
94.23 	boundaries of the town or school district.

94.24 	Sec. 22. Minnesota Statutes 2004, section 204B.16, subdivision 3, is amended to read:
94.25 		Subd. 3.Designation effective until changed. The designation of a polling place 
94.26 	pursuant to this section shall remain effective until a different polling place is designated 
94.27 	for that precinct. No designation of a new or different polling place:
94.28 	(a) shall be made more frequently than once in any 12-month period;
94.29 	(b) shall become effective less than 90 days prior to an election, including school 
94.30 	district elections or referenda, and no polling place changes may; and
94.31 	(c) shall occur during the period between the state primary and the state general 
94.32 	election, except that a new polling place may be designated to replace a polling place that 
94.33 	has become unavailable for use.

95.1 	Sec. 23. Minnesota Statutes 2004, section 204B.40, is amended to read:
95.2 	204B.40 BALLOTS; ELECTION RECORDS AND OTHER MATERIALS; 
95.3 	DISPOSITION; INSPECTION OF BALLOTS.
95.4 	The county auditors, municipal clerks, and school district clerks shall retain all 
95.5 	election materials returned to them after any election for at least 22 months from the date 
95.6 	of that election. All election materials involved in a contested election must be retained for 
95.7 	22 months or until the contest has been finally determined, whichever is later. Abstracts 
95.8 	filed by canvassing boards shall be retained permanently by any officer with whom those 
95.9 	abstracts are filed. Election materials no longer required to be retained pursuant to this 
95.10 	section shall be disposed of in accordance with sections  138.163 to  138.21. Sealed 
95.11 	envelopes containing voted ballots must be retained unopened, except as provided in this 
95.12 	section, in a secure location. The county auditor, municipal clerk, or school district clerk 
95.13 	shall not permit any voted ballots to be tampered with or defaced. 
95.14 	After the time for filing a notice of contest for an election has passed, the secretary 
95.15 	of state may, for the purpose of monitoring and evaluating election procedures: (1)  open 
95.16 	the sealed ballot envelopes and inspect the ballots for that election maintained by the 
95.17 	county auditors, municipal clerks, or school district clerks for the purpose of monitoring 
95.18 	and evaluating election procedures.; (2) inspect the polling place rosters and completed 
95.19 	voter registration applications; or (3) examine other forms required in the Minnesota 
95.20 	election laws for use in the polling place.  No inspected ballot or document may be 
95.21 	marked or identified in any manner. After inspection, all ballots must be returned to the 
95.22 	ballot envelope and the ballot envelope must be securely resealed. Any other election 
95.23 	materials inspected or examined must be secured or resealed. No polling place roster 
95.24 	may be inspected until the voting history for that precinct has been posted. No voter 
95.25 	registration application may be inspected until the information on it has been entered into 
95.26 	the statewide registration system. 

95.27 	Sec. 24. [204C.035] DECEPTIVE PRACTICES IN ELECTIONS.
95.28 		Subdivision 1.Criminal penalty. No person shall knowingly deceive another person 
95.29 	regarding the time, place, or manner of conducting an election or the qualifications for or 
95.30 	restrictions on voter eligibility for an election, with the intent to prevent the individual 
95.31 	from voting in the election. A violation of this subdivision is a gross misdemeanor.
95.32 		Subd. 2.Civil action. No person shall knowingly deceive another person regarding 
95.33 	the time, place, or manner of conducting an election or the qualifications for or restrictions 
95.34 	on voter eligibility for an election. A person aggrieved by a violation of this subdivision 
95.35 	may bring an action for injunctive or other appropriate relief.
96.1 		Subd. 3.Reporting false election information. (a) Any person may report to 
96.2 	the county attorney or attorney general an act of deception regarding the time, place, or 
96.3 	manner of conducting an election or the qualifications for or restrictions on voter eligibility 
96.4 	for an election. Not later than 48 hours after receiving a report under this subdivision, the 
96.5 	office receiving the report shall investigate it and:
96.6 	(1) provide accurate information to voters affected by the deception; and
96.7 	(2) if appropriate, proceed under subdivision 1 or 2.
96.8 	(b) If a report is received under this subdivision during the 72 hours immediately 
96.9 	before an election, the county attorney or attorney general shall investigate immediately 
96.10 	and provide timely accurate information to voters affected by the deception, and if 
96.11 	appropriate, may subsequently proceed under subdivision 1 or 2.

96.12 	EFFECTIVE DATE. This section is effective August 1, 2006, and applies to 
96.13 	offenses committed on or after that date.

96.14 	Sec. 25. Minnesota Statutes 2005 Supplement, section 204C.08, subdivision 1a, 
96.15 	is amended to read:
96.16 		Subd. 1a.Minnesota Voter's Bill of Rights. The county auditor shall prepare and 
96.17 	provide to each polling place sufficient copies of a poster setting forth the Minnesota 
96.18 	Voter's Bill of Rights as set forth in this section. Before the hours of voting are scheduled 
96.19 	to begin, the election judges shall post it in a conspicuous location or locations in the 
96.20 	polling place. The Minnesota Voter's Bill of Rights is as follows:
96.21 	"MINNESOTA VOTER'S BILL OF RIGHTS
96.22 	For all persons residing in this state who meet federal voting eligibility requirements:
96.23 	(a) Access.
96.24 	(1) You have the right for the polling place to open on time.
96.25 	(2) You have the right to vote in peace and security and not be harassed.
96.26 	(3) You have the right not to have campaigners ask for your name when you are 
96.27 	entering or leaving the polling place.
96.28 	(1) (4) You have the right to be absent from work for the purpose of voting during 
96.29 	the morning of election day.
96.30 	(2) (5) If you are in line at your polling place any time between 7:00 a.m. and 8:00 
96.31 	p.m., you have the right to vote.
96.32 	(3) (6) If you can provide the required proof of residence, you have the right to 
96.33 	register to vote and to vote on election day.
96.34 	(4) (7) If you are unable to sign your name, you have the right to orally confirm your 
96.35 	identity with an election judge and to direct another person to sign your name for you.
97.1 	(5) (8) You have the right to request special assistance when voting.
97.2 	(6) (9) If you need assistance, you may be accompanied into the voting booth by a 
97.3 	person of your choice, except by an agent of your employer or union or a candidate.
97.4 	(7) (10) You have the right to bring your minor children into the polling place and 
97.5 	into the voting booth with you.
97.6 	(8) (11) If you have been convicted of a felony but your felony sentence has expired 
97.7 	(been completed) or you have been discharged from your sentence, you have the right to 
97.8 	vote.
97.9 	(9) (12) If you are under a guardianship, you have the right to vote, unless the court 
97.10 	order revokes your right to vote.
97.11 	(10) (13) You have the right to vote without anyone in the polling place trying to 
97.12 	influence your vote.
97.13 	(11) If you make a mistake or spoil your ballot before it is submitted, you have the 
97.14 	right to receive a replacement ballot and vote.
97.15 	(12) You have the right to file a written complaint at your polling place if you are 
97.16 	dissatisfied with the way an election is being run.
97.17 	(13) You have the right to take a sample ballot into the voting booth with you.
97.18 	(14) You have the right to take a sample ballot into the voting booth with you as long 
97.19 	as you do not show the ballot to other voters in the polling place.
97.20 	(b) Privacy.
97.21 	(1) You have the right to a private voting booth.
97.22 	(2) You have the right for your ballot to be placed in a secured and locked container.
97.23 	(3) You have the right for private information on your Voter Registration Application 
97.24 	to be private and not to be used or disclosed unlawfully.
97.25 	(c) Integrity.
97.26 	(1) You have the right to a paper ballot.
97.27 	(2) You have the right for your name to be on the voting roster if you are timely 
97.28 	registered.
97.29 	(3) You have the right to know how, when, where, and with whom to file an election 
97.30 	complaint.
97.31 	(4) You have the right to have your voter registration that was collected by 
97.32 	door-to-door solicitors or in other voter registration drives delivered to election officials 
97.33 	in a proper and timely manner. 
97.34 	(5) You have the right to have your voter registration processed in a timely manner.
97.35 	(6) If you make a mistake or spoil your ballot at the polling place before it is 
97.36 	submitted, you have the right to receive a replacement ballot and vote.
98.1 	(7) You have the right to file a written complaint at your polling place if you are 
98.2 	dissatisfied with the way an election is being conducted.
98.3 	(d) Accuracy.
98.4 	(1) You have the right to an accurate ballot.
98.5 	(2) You have the right to see the votes counted.
98.6 	(3) You have the right to have the vote results announced and posted immediately 
98.7 	after they are counted.
98.8 	(4) You have the right to take a copy of this Minnesota Voter's Bill of Rights into the 
98.9 	voting booth with you."

98.10 	Sec. 26. [204D.035] LIMITS ON HOLDING ELECTIONS.
98.11 	An election may be held only on the first Tuesday after the first Monday of any 
98.12 	month, provided that day is not a holiday as defined in section 645.44, subdivision 5, 
98.13 	except as follows:
98.14 	(1) an election in March shall be on the second Tuesday as provided by section 
98.15 	205.075;
98.16 	(2) another statute specifies another date for a particular election; or
98.17 	(3) an election to fill a vacancy in a legislative or congressional office is held on 
98.18 	another date pursuant to section 204D.19.

98.19 	Sec. 27. Minnesota Statutes 2004, section 205A.11, subdivision 2, is amended to read:
98.20 		Subd. 2.Combined polling place. When no other election is being held in two or 
98.21 	more precincts on the day of a school district election, the school board may designate one 
98.22 	or more combined polling places at which the voters in those precincts may vote in the 
98.23 	school district election. The polling place used in a primary election for an office must be 
98.24 	the same location used throughout the calendar year for the general election for that office. 
98.25 	In no case may the location of a polling place be changed between the primary election 
98.26 	and the general election for an office, except that a new polling place may be designated to 
98.27 	replace a polling place that has become unavailable for use.

98.28 	Sec. 28. Minnesota Statutes 2005 Supplement, section 206.56, subdivision 1b, is 
98.29 	amended to read:
98.30 		Subd. 1b.Audio ballot reader. "Audio ballot reader" means an audio representation 
98.31 	of a ballot that can be used with other assistive voting technology to permit a voter to mark 
98.32 	votes on a nonelectronic ballot or to securely transmit a ballot electronically to automatic 
98.33 	tabulating equipment in the polling place.

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

99.2 	Sec. 29. Minnesota Statutes 2005 Supplement, section 206.56, subdivision 3, is 
99.3 	amended to read:
99.4 		Subd. 3.Ballot. "Ballot" includes paper ballots, ballot cards, and  the paper ballot 
99.5 	marked by an electronic marking device, and an electronic record of each vote cast by 
99.6 	a voter at an election and securely transmitted electronically to automatic tabulating 
99.7 	equipment in the polling place.

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

99.9 	Sec. 30. Minnesota Statutes 2005 Supplement, section 206.56, subdivision 7a, is 
99.10 	amended to read:
99.11 		Subd. 7a.Electronic ballot display. "Electronic ballot display" means a graphic 
99.12 	representation of a ballot on a computer monitor or screen on which a voter may make 
99.13 	vote choices for candidates and questions for the purpose of marking a nonelectronic 
99.14 	ballot or securely transmitting an electronic ballot to automatic tabulating equipment 
99.15 	in the polling place.

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

99.17 	Sec. 31. Minnesota Statutes 2005 Supplement, section 206.56, subdivision 7b, is 
99.18 	amended to read:
99.19 		Subd. 7b.Electronic ballot marker. "Electronic ballot marker" means equipment 
99.20 	that is part of an electronic voting system that uses an electronic ballot display or audio 
99.21 	ballot reader to:
99.22 	(1) mark a nonelectronic ballot with votes selected by a voter; or
99.23 	(2) securely transmit a ballot electronically to automatic tabulating equipment in the 
99.24 	polling place.

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

99.26 	Sec. 32. Minnesota Statutes 2005 Supplement, section 206.56, subdivision 8, is 
99.27 	amended to read:
99.28 		Subd. 8.Electronic voting system. "Electronic voting system" means a system 
99.29 	in which the voter records votes by means of marking or transmitting a ballot, so that 
99.30 	votes may be counted by automatic tabulating equipment in the polling place where the 
99.31 	ballot is cast or at a counting center.
100.1 	An electronic voting system includes automatic tabulating equipment; nonelectronic 
100.2 	ballot markers; electronic ballot markers, including electronic ballot display, audio ballot 
100.3 	reader, and devices by which the voter will register the voter's voting intent; software used 
100.4 	to program automatic tabulators and layout ballots; computer programs used to accumulate 
100.5 	precinct results; ballots; secrecy folders; system documentation; and system testing results.

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

100.7 	Sec. 33. Minnesota Statutes 2005 Supplement, section 206.57, subdivision 5, is 
100.8 	amended to read:
100.9 		Subd. 5.Voting system for disabled voters. (a) In federal and state elections held 
100.10 	after December 31, 2005, and; in county, municipal city, and school district elections held 
100.11 	after December 31, 2007,; and in town elections  after December 31, 2007, except as 
100.12 	provided in this subdivision;  the voting method used in each polling place must include 
100.13 	a voting system that is accessible for individuals with disabilities, including nonvisual 
100.14 	accessibility for the blind and visually impaired in a manner that provides the same 
100.15 	opportunity for access and participation, including privacy and independence, as for other 
100.16 	voters. The requirements of this subdivision do not apply to town elections held in March 
100.17 	if no other election is held concurrently with the town election.
100.18 	(b) Notwithstanding any contrary provision in this subdivision, if a resident of a 
100.19 	township files a written request with the county auditor that a voting system as described 
100.20 	in this subdivision be available at a town election held in March or in November of 
100.21 	odd-numbered years, the town must make such a voting system available. A request under 
100.22 	this paragraph must be submitted by the close of filings for the election.

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

100.24 	Sec. 34. Minnesota Statutes 2005 Supplement, section 206.61, subdivision 5, is 
100.25 	amended to read:
100.26 		Subd. 5.Alternation. The provisions of the election laws requiring the alternation 
100.27 	of names of candidates must be observed as far as practicable by changing the order 
100.28 	of the names on an electronic voting system in the various precincts so that each name 
100.29 	appears on the machines or marking devices used in a municipality substantially an equal 
100.30 	number of times in the first, last, and in each intermediate place in the list or group in 
100.31 	which they belong. However, the arrangement of candidates' names must be the same 
100.32 	on all voting systems used in the same precinct. If the number of names to be alternated 
101.1 	exceeds the number of precincts, the election official responsible for providing the ballots, 
101.2 	in accordance with subdivision 1, shall determine by lot the alternation of names.
101.3 	If an electronic ballot marker is used with a paper ballot that is not an optical scan 
101.4 	ballot card, the manner of alternation of candidate names on the paper ballot must be as 
101.5 	prescribed for optical scan ballots in this subdivision. If a machine is used to securely 
101.6 	transmit a ballot electronically to automatic tabulating equipment in the polling place, 
101.7 	the manner of alternation of candidate names on the transmitting machine must be as 
101.8 	prescribed for optical scan ballots in this subdivision.

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

101.10 	Sec. 35. Minnesota Statutes 2005 Supplement, section 206.80, is amended to read:
101.11 	206.80 ELECTRONIC VOTING SYSTEMS.
101.12 	(a) An electronic voting system may not be employed unless it:
101.13 	(1) permits every voter to vote in secret;
101.14 	(2) permits every voter to vote for all candidates and questions for whom or upon 
101.15 	which the voter is legally entitled to vote;
101.16 	(3) provides for write-in voting when authorized;
101.17 	(4) automatically rejects, except as provided in section 206.84 with respect to 
101.18 	write-in votes, all votes for an office or question when the number of votes cast on it 
101.19 	exceeds the number which the voter is entitled to cast;
101.20 	(5) permits a voter at a primary election to select secretly the party for which the 
101.21 	voter wishes to vote;
101.22 	(6) automatically rejects all votes cast in a primary election by a voter when the voter 
101.23 	votes for candidates of more than one party; and
101.24 	(7) provides every voter an opportunity to verify votes recorded on the permanent 
101.25 	paper ballot or paper record, either visually or using assistive voting technology, and to 
101.26 	change votes or correct any error before the voter's ballot is cast and counted, produces 
101.27 	an individual, discrete, permanent, paper ballot or paper record of the ballot cast by the 
101.28 	voter, and preserves the paper ballot or paper record as an official record available for 
101.29 	use in any recount.
101.30 	(b) An electronic voting system purchased on or after June 4, 2005, may not be 
101.31 	employed unless it:
101.32 	(1) accepts and tabulates, in the polling place or at a counting center, a marked 
101.33 	optical scan ballot; or
102.1 	(2) creates a marked optical scan ballot that can be tabulated in the polling place or 
102.2 	at a counting center by automatic tabulating equipment certified for use in this state; or
102.3 	(3) securely transmits a ballot electronically to automatic tabulating equipment in 
102.4 	the polling place while creating an individual, discrete, permanent paper record of each 
102.5 	vote on the ballot.

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

102.7 	Sec. 36. Minnesota Statutes 2005 Supplement, section 206.805, subdivision 1, is 
102.8 	amended to read:
102.9 		Subdivision 1.Contracts required. (a) The secretary of state, with the assistance 
102.10 	of the commissioner of administration, shall establish one or more state voting systems 
102.11 	contracts. The contracts should, if practical, include provisions for maintenance of the 
102.12 	equipment purchased. The voting systems contracts must address precinct-based optical 
102.13 	scan voting equipment, and ballot marking equipment for persons with disabilities and 
102.14 	other voters, and assistive voting machines that combine voting methods used for persons 
102.15 	with disabilities with precinct-based optical scan voting machines. The contracts must 
102.16 	give the state a perpetual license to use and modify the software. The contracts must 
102.17 	include provisions to escrow the software source code, as provided in subdivision 2. Bids 
102.18 	for voting systems and related election services must be solicited from each vendor selling 
102.19 	or leasing voting systems that have been certified for use by the secretary of state. The 
102.20 	contracts must be renewed from time to time.
102.21 	(b) The secretary of state shall appoint an advisory committee, including 
102.22 	representatives of the state chief information officer, county auditors, municipal clerks who 
102.23 	have had operational experience with the use of electronic voting systems, and members 
102.24 	of the disabilities community to advise the secretary of state in reviewing and evaluating 
102.25 	the merits of proposals submitted from voting equipment vendors for the state contracts.
102.26 	(c) Counties and municipalities may purchase or lease voting systems and obtain 
102.27 	related election services from the state contracts.

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

102.29 	Sec. 37. Minnesota Statutes 2005 Supplement, section 206.82, subdivision 2, is 
102.30 	amended to read:
102.31 		Subd. 2.Plan. (a) Subject to paragraph (b), the municipal clerk in a municipality 
102.32 	where an electronic voting system is used and the county auditor of a county in which an 
102.33 	electronic voting system is used in more than one municipality and the county auditor of 
103.1 	a county in which a counting center serving more than one municipality is located shall 
103.2 	prepare a plan which indicates acquisition of sufficient facilities, computer time, and 
103.3 	professional services and which describes the proposed manner of complying with section 
103.4 	206.80. The plan must be signed, notarized, and submitted to the secretary of state more 
103.5 	than 60 days before the first election at which the municipality uses an electronic voting 
103.6 	system. Prior to July 1 of each subsequent general election year, the clerk or auditor 
103.7 	shall submit to the secretary of state notification of any changes to the plan on file with 
103.8 	the secretary of state. The secretary of state shall review each plan for its sufficiency and 
103.9 	may request technical assistance from the Department of Administration or other agency 
103.10 	which may be operating as the central computer authority. The secretary of state shall 
103.11 	notify each reporting authority of the sufficiency or insufficiency of its plan within 20 days 
103.12 	of receipt of the plan. The attorney general, upon request of the secretary of state, may 
103.13 	seek a district court order requiring an election official to fulfill duties imposed by this 
103.14 	subdivision or by rules promulgated pursuant to this section.
103.15 	(b) Systems implemented by counties and municipalities in calendar year 2006 are 
103.16 	exempt from paragraph (a) and section 206.58, subdivision 4, if:
103.17 	(1) the municipality has fewer than 10,000 residents; and
103.18 	(2) a valid county plan was filed by the county auditor of the county in which the 
103.19 	municipality is located.

103.20 	Sec. 38. Minnesota Statutes 2005 Supplement, section 206.83, is amended to read:
103.21 	206.83 TESTING OF VOTING SYSTEMS.
103.22 	Within 14 days before election day, the official in charge of elections shall have the 
103.23 	voting system tested to ascertain that the system will correctly mark or securely transmit 
103.24 	to automatic tabulating equipment in the polling place ballots using all methods supported 
103.25 	by the system, including through assistive technology, and count the votes cast for all 
103.26 	candidates and on all questions. Public notice of the time and place of the test must be 
103.27 	given at least two days in advance by publication once in official newspapers. The test 
103.28 	must be observed by at least two election judges, who are not of the same major political 
103.29 	party, and must be open to representatives of the political parties, candidates, the press, 
103.30 	and the public. The test must be conducted by (1) processing a preaudited group of ballots 
103.31 	punched or marked to record a predetermined number of valid votes for each candidate 
103.32 	and on each question, and must include for each office one or more ballot cards which 
103.33 	have votes in excess of the number allowed by law in order to test the ability of the voting 
103.34 	system tabulator and electronic ballot marker to reject those votes; and (2) processing an 
103.35 	additional test deck of ballots marked using the electronic ballot marker for the precinct, 
104.1 	including ballots marked or ballots securely transmitted electronically to automatic 
104.2 	tabulating equipment in the polling place using the electronic ballot display, audio ballot 
104.3 	reader, and any assistive voting technology used with the electronic ballot marker. If any 
104.4 	error is detected, the cause must be ascertained and corrected and an errorless count must 
104.5 	be made before the voting system may be used in the election. After the completion of 
104.6 	the test, the programs used and ballot cards must be sealed, retained, and disposed of as 
104.7 	provided for paper ballots.

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

104.9 	Sec. 39. [206.89] POSTELECTION REVIEW OF VOTING SYSTEMS.
104.10 		Subdivision 1.Selection for review; notice.  At the canvass of the state primary, 
104.11 	the county canvassing board in each county must set the date, time, and place for the 
104.12 	postelection review of the state general election to be held under this section.  The review 
104.13 	must be conducted at the location where the voted ballots have been securely stored after 
104.14 	the state general election or at another location chosen by the county canvassing board. 
104.15 	The review must be completed no later than two days before the meeting of the state 
104.16 	canvassing board to certify the results of the state general election.
104.17 	At the canvass of the state general election, the county canvassing boards must select 
104.18 	the precincts to be reviewed. The county canvassing board of a county with fewer than 
104.19 	50,000 registered voters must select at least two precincts for postelection review.  The 
104.20 	county canvassing board of a county with between 50,000 and 100,000 registered voters 
104.21 	must select at least three precincts for review.  The county canvassing board of a county 
104.22 	with over 100,000 registered voters must select at least four precincts.  The precincts must 
104.23 	be selected by lot at a public meeting.  At least one precinct selected in each county must 
104.24 	have had more than 150 votes cast at the general election.
104.25 	Each county auditor must notify the secretary of state of the precincts that have been 
104.26 	chosen for review and the time and place the postelection review for that county will 
104.27 	be conducted, as soon as the decisions are made.  The secretary of state must post this 
104.28 	information on the office Web site.
104.29 		Subd. 2. Scope and conduct of review.  Postelection review must be conducted 
104.30 	of the votes cast for President or governor; United States Senator; and United States 
104.31 	Representative. The recount officials may conduct postelection review of the votes cast 
104.32 	for additional offices.
104.33 	The postelection review must be conducted in public.  The recount official for the 
104.34 	precincts selected must conduct the postelection review and may be assisted by election 
104.35 	judges designated by the recount official for this purpose. The party balance requirement 
105.1 	of section 204B.19 applies to election judges designated for the review. The postelection 
105.2 	review must consist of a manual count of the ballots used in the precincts selected and 
105.3 	must be performed in the manner provided by section 204C.21. The postelection review 
105.4 	must be conducted in the manner provided for recounts under section 204C.361 to the 
105.5 	extent practicable.
105.6 	Upon completion of the postelection review, the recount official must immediately 
105.7 	report the results to the county auditor.  The county auditor must then immediately submit 
105.8 	the results of the postelection review electronically or in writing to the secretary of state no 
105.9 	later than two days before the State Canvassing Board meets to canvass the state general 
105.10 	election.  The secretary of state shall report the results of the preelection review at the 
105.11 	meeting of the State Canvassing Board to canvass the state general election.
105.12 		Subd. 3. Standard of acceptable performance by voting system.  (a) Each 
105.13 	comparison of the results compiled by the voting system with the postelection review 
105.14 	described in this section must be accurate to within one-half of one percent variation from 
105.15 	the manual count of the offices reviewed.  Valid votes that have been marked by the voter 
105.16 	outside the vote targets or using a manual marking device that cannot be read by the voting 
105.17 	system must not be included in making the determination whether the voting system has 
105.18 	met the standard of acceptable performance for any precinct.
105.19 	(b) If the postelection review reveals a difference greater than one-half of one 
105.20 	percent, the recount official must, within two days, conduct an additional review of at least 
105.21 	three precincts in the same jurisdiction where the discrepancy was discovered. If all 
105.22 	precincts in that jurisdiction have been reviewed, the county auditor must immediately 
105.23 	publicly select by lot at least three additional precincts for review. The recount official 
105.24 	must complete the additional review within two days after the precincts are selected and 
105.25 	report the results immediately to the county auditor. If the second review also indicates a 
105.26 	difference in the voting totals compiled by the voting system that is greater than one-half 
105.27 	of one percent from the result indicated by the postelection review, the county auditor 
105.28 	must conduct a review of the ballots from all the remaining precincts in the county. This 
105.29 	review must be completed no later than six weeks after the state general election.
105.30 	(c) If the results from the countywide reviews from one or more counties comprising 
105.31 	in the aggregate more than ten percent of the total number of persons voting in the election 
105.32 	clearly indicate that an error in vote counting has occurred, the recount official must 
105.33 	conduct a manual recount of all the ballots in the district for the affected office. The 
105.34 	recount must be completed and the results reported to the appropriate canvassing board no 
105.35 	later than ten weeks after the state general election.
106.1 		Subd. 4. Update of vote totals.  If the postelection review under this section results 
106.2 	in a change in the number of votes counted for any candidate, the revised vote totals must 
106.3 	be incorporated in the official result from those precincts.
106.4 		Subd. 5. Effect on voting systems.  If a voting system is found to have failed 
106.5 	to record votes accurately and in the manner provided by the Minnesota election law, 
106.6 	the voting system must not be used at another election until it has been examined and 
106.7 	recertified by the secretary of state. If the voting system failure is attributable to either its 
106.8 	design or to actions of the vendor, the vendor must forfeit the vendor bond required by 
106.9 	section 206.57 and the performance bond required by section 206.66. 
106.10 		Subd. 6. Costs of review.  The costs of the postelection review required by this 
106.11 	section must be allocated as follows: 
106.12 	(1) the governing body responsible for each precinct selected for review must pay 
106.13 	the costs incurred for the review conducted under subdivision 2 or 3, paragraph (b); 
106.14 	 (2) the vendor of the voting system must pay any costs incurred by the secretary 
106.15 	of state to examine and recertify the voting system; and
106.16 	(3) the secretary of state must reimburse local units of government for the costs of 
106.17 	any recount required under subdivision 3, paragraph (c).
106.18 		Subd. 7. Time for filing election contest.  The time for notice of a contest of 
106.19 	election does not begin to run until all reviews under this section have been completed.

106.20 	Sec. 40. [206.895] SECRETARY OF STATE MONITOR.
106.21 	The secretary of state must monitor and evaluate election procedures in precincts 
106.22 	subject to the audit provided for in section 206.89 in at least four precincts in each 
106.23 	congressional district. The precincts must be chosen by lot by the State Canvassing Board 
106.24 	at its meeting to canvass the state general election.

106.25 	Sec. 41. Minnesota Statutes 2005 Supplement, section 206.90, subdivision 8, is 
106.26 	amended to read:
106.27 		Subd. 8.Duties of election officials. The official in charge of elections in each 
106.28 	municipality where an optical scan voting system is used shall have the electronic ballot 
106.29 	marker that examines and marks votes on ballot cards or the machine that securely 
106.30 	transmits a ballot electronically to automatic tabulating equipment in the polling place
106.31 	and the automatic tabulating equipment that examines and counts votes as ballot cards 
106.32 	are deposited into ballot boxes put in order, set, adjusted, and made ready for voting 
106.33 	when delivered to the election precincts.

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

107.1 	Sec. 42. [206.91] VOTING MACHINES OPTIONS WORKING GROUP.
107.2 	(a) A working group is hereby established to investigate and recommend to the 
107.3 	legislature requirements for additional options for voting equipment that complies with 
107.4 	the requirements of section 301 of the Help America Vote Act, Public Law 107-252, to 
107.5 	provide private and independent voting for individuals with disabilities.
107.6 	The working group must be cochaired by representatives of the Minnesota Disability 
107.7 	Law Center and Citizens for Election Integrity - Minnesota.
107.8 	(b) The working group must convene its first meeting by June 2006 and must report 
107.9 	to the legislature by February 15, 2007.
107.10 	(c) The working group must include, but is not limited to:
107.11 	(1) the disability community;
107.12 	(2) the secretary of state;
107.13 	(3) county and local election officials;
107.14 	(4) major and minor political parties;
107.15 	(5)(i) one member of the senate majority caucus and one member of the senate 
107.16 	minority caucus appointed by the Subcommittee on Committees of the Committee on 
107.17 	Rules and Administration; and
107.18 	(ii) one member of the house majority caucus and one member of the house minority 
107.19 	caucus appointed by the speaker;
107.20 	(6) nonpartisan organizations;
107.21 	(7) at least one individual with computer security expertise and knowledge of 
107.22 	elections; and 
107.23 	(8) members of the public, other than vendors of election equipment, selected 
107.24 	by consensus of the other members, including representatives of language and other 
107.25 	minorities.
107.26 	(d) Members of the working group will be selected by:
107.27 	(1) a representative of the Office of the Secretary of State;
107.28 	(2) a representative of the county election officials;
107.29 	(3) the cochairs; and 
107.30 	(4) two legislators representing each party.

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

107.32 	Sec. 43. [206A.01] ADMINISTRATION OF STATEWIDE REGISTRATION 
107.33 	SYSTEM.
107.34 	The secretary of state shall develop and operate a centralized database of all 
107.35 	registered voters in the state of Minnesota. The database must be available to each 
108.1 	county in the state through a statewide registration system provided by the secretary of 
108.2 	state. The registration system must allow the secretary of state and the county auditors to 
108.3 	add or modify information from the system in order to maintain an accurate database of 
108.4 	registrants. The system must provide all county auditors and the secretary of state and, 
108.5 	within a reasonable time after the system is initially implemented, municipal and school 
108.6 	district clerks, with a method to view and search registration information.
108.7 	A county auditor must use the statewide registration system to execute the duties of 
108.8 	chief registrar of voters and chief custodian of registration records in the auditor's county. 

108.9 	Sec. 44. [206A.02] TREATMENT OF VOTER REGISTRATION 
108.10 	APPLICATIONS.
108.11 		Subdivision 1.Transmission of voter registration applications. A completed 
108.12 	voter registration application may be submitted to any state agency or county auditor. The 
108.13 	secretary of state shall provide training to state agencies on the proper forwarding of voter 
108.14 	registration applications. Voter registration applications submitted to the secretary of state 
108.15 	must be forwarded to the appropriate county auditor for entry into the statewide registration 
108.16 	system. With the approval of the appropriate county auditor, the secretary of state shall 
108.17 	enter the registration applications into the statewide registration system for that county.
108.18 	The secretary of state may electronically transmit the information on the voter 
108.19 	registration applications to the appropriate county auditor. The county auditor shall 
108.20 	promptly enter the information into the statewide registration system. The original 
108.21 	applications submitted to the secretary of state must be maintained either by the secretary 
108.22 	of state or by the appropriate county auditor. Voter registration applications must be stored 
108.23 	in either paper, microfilm, or electronic format.
108.24 	The secretary of state shall have full access to all functions of the statewide 
108.25 	registration system.
108.26 		Subd. 2.Verification; defined; notification. (a) Verification means:
108.27 	(1) that the information provided by the applicant on the voter registration application 
108.28 	for all of the following categories matches the information in the same categories of the 
108.29 	database maintained by the Department of Public Safety or in the database of the Social 
108.30 	Security Administration if the applicant has no driver's license or identification card:
108.31 	(i) name;
108.32 	(ii) date of birth;
108.33 	(iii) Minnesota driver's license or Minnesota state identification card number; or
108.34 	(iv) last four digits of Social Security number, if the applicant has not been issued a 
108.35 	Minnesota driver's license or Minnesota state identification card.
109.1 	If a voter has not been issued a Minnesota driver's license, a Minnesota state 
109.2 	identification card, or a Social Security number, and the voter has so indicated on 
109.3 	the voter's voter registration application, items (iii) and (iv) are inapplicable and the 
109.4 	registration is verified; or
109.5 	(2) that if after matching the information listed in clause (1), even though the 
109.6 	information may not be an exact match, the county auditor is able to still reasonably 
109.7 	conclude that the information in the database of the Department of Public Safety, or in the 
109.8 	database of the Social Security Administration if the applicant has no driver's license or 
109.9 	identification card, and the information provided by the applicant on the voter registration 
109.10 	application, relate to the same person, in which case the county auditor shall note in the 
109.11 	statewide registration system the basis for the conclusion.
109.12 	(b) The secretary of state must attempt to verify information entered into the voter 
109.13 	registration system as a result of new voter registration applications by comparing the 
109.14 	information stored by the voter registration system with information contained in the 
109.15 	database maintained by the Department of Public Safety. The secretary of state must 
109.16 	provide reports on attempted verifications that show the information of record in each 
109.17 	database and that list:
109.18 	(1) voter registration applications that match the information in the Department of 
109.19 	Public Safety database or, in the case of an applicant who does not have a Minnesota 
109.20 	driver's license or Minnesota identification card in the database of the Social Security 
109.21 	Administration, and that are therefore verified;
109.22 	(2) voter registration applications that cannot be verified with certainty against the 
109.23 	information in the Department of Public Safety database or, in the case of an applicant 
109.24 	who does not have a Minnesota driver's license or Minnesota identification card, in the 
109.25 	database of the Social Security Administration. The report must match and contrast the 
109.26 	information contained in the several databases; and
109.27 	(3) voter registration applications with Minnesota drivers' license numbers, 
109.28 	Minnesota identification card numbers, or if the applicant has no driver's license or 
109.29 	identification card, the last four digits of the applicant's Social Security number that do not 
109.30 	match the numbers of record in the Department of Public Safety database or, in the case of 
109.31 	an applicant who does not have a Minnesota driver's license or Minnesota identification 
109.32 	card, in the database of the Social Security Administration.
109.33 	The reports prepared by the secretary of state must include a separate list of potential 
109.34 	matches for incomplete mail-in registrations described in section 201.061, subdivision 1a.
109.35 	(c) The county auditor must review the reports provided by the secretary of state of 
109.36 	records that have not been verified with certainty within ten days after the reports become 
110.1 	available in the statewide voter registration system. The auditor must attempt to match 
110.2 	the information on the voter registration application with the information in the database 
110.3 	maintained by the Department of Public Safety or, in the case of an applicant who does 
110.4 	not have a Minnesota driver's license or Minnesota identification card, in the database of 
110.5 	the Social Security Administration, to permit the auditor to verify the information supplied 
110.6 	on the voter registration application. The auditor shall attempt to obtain from the applicant 
110.7 	any needed information by mail or, if a telephone number or an e-mail address was 
110.8 	provided by the applicant, by telephone or e-mail. The auditor must record on the voter 
110.9 	record in the statewide voter registration system each registration verified in this manner.
110.10 	(d) If the auditor cannot verify information for a registration, the auditor must record 
110.11 	that the information supplied on the voter registration application could not be verified and 
110.12 	is incomplete pursuant to section 201.121, subdivision 1.
110.13 		Subd. 3.Correction. If a Minnesota driver's license number or Minnesota state 
110.14 	identification card number supplied by the applicant cannot be verified because it does 
110.15 	not exist in the Department of Public Safety database, the secretary of state or the county 
110.16 	auditor shall correct the voter record to indicate that the number must not be used as the 
110.17 	verification number on the voter record. In the case of an applicant who does not have a 
110.18 	Minnesota driver's license, Minnesota identification card, or Social Security number that 
110.19 	can be verified by comparison with the Department of Public Safety database, or in the 
110.20 	database of the Social Security Administration, if the applicant has no Minnesota driver's 
110.21 	license or Minnesota identification card, the unique voter record number generated by the 
110.22 	statewide voter registration system must be used as the verification number for the record.
110.23 		Subd. 4.Omission of required information. If the applicant did not supply a 
110.24 	Minnesota driver's license, Minnesota identification card, or Social Security number, 
110.25 	and the auditor concludes that a number exists for that applicant after comparing the 
110.26 	voter registration application with the information in the Department of Public Safety 
110.27 	database or, in the case of an applicant who does not have a Minnesota driver's license 
110.28 	or Minnesota identification card, in the database of the Social Security Administration, 
110.29 	the auditor must attempt to contact the applicant and request that the applicant provide 
110.30 	the number. If the applicant does not provide the number, the county auditor must notify 
110.31 	the applicant that the application is deficient and cannot be accepted and processed and 
110.32 	that the applicant must provide the appropriate number to the county auditor 20 days prior 
110.33 	to the election or register on election day.
110.34 		Subd. 5.Updates. A voter with an active voter registration may change the 
110.35 	information on record by submitting a voter registration application meeting all the 
110.36 	requirements for a new voter registration application.
111.1 	If, after matching the updated information with the information contained in the 
111.2 	Department of Public Safety database or, in the case of an applicant who does not have a 
111.3 	Minnesota driver's license or Minnesota identification card, in the database of the Social 
111.4 	Security Administration, the accuracy of the updated information cannot be verified, the 
111.5 	county auditor must send a notice to the voter whose information cannot be verified and 
111.6 	request that the voter provide the information or contact the registration office.
111.7 	If the discrepancy cannot be resolved, the county auditor must challenge the voter in 
111.8 	the statewide voter registration system and may refer the matter to the county attorney. If 
111.9 	during the verification process the Department of Public Safety provides information that 
111.10 	indicates that the voter is ineligible to vote, the county auditor must challenge the voter in 
111.11 	the statewide voter registration system and refer the matter to the county attorney.

111.12 	Sec. 45. [206A.03] PROCEDURE FOR ENTERING DATA INTO STATEWIDE 
111.13 	VOTER REGISTRATION SYSTEM.
111.14 	(a) When entering information from a voter registration application into the 
111.15 	statewide registration system, the secretary of state or county auditor shall:
111.16 	(1) conduct a statewide search of the registration database to determine if the 
111.17 	applicant has previously registered in Minnesota;
111.18 	(2) assign the applicant to the proper voting precinct for the address provided on 
111.19 	the application;
111.20 	(3) determine all election districts in which the applicant will be eligible to vote;
111.21 	(4) notify the appropriate county auditor if the applicant has moved from another 
111.22 	county in the state in which the registrant was previously registered;
111.23 	(5) assign the registration record a unique identification number, and date the record 
111.24 	as to when the registration was entered into the registration database;
111.25 	(6) maintain a record of voting history of the registrant for at least the previous six 
111.26 	calendar years and a record of previous registrations and changes to voter status in the 
111.27 	state for at least two years; and
111.28 	(7) provide information on prior registrations in other states. At periodic intervals, 
111.29 	the secretary of state shall notify the chief election officials of other states of persons who 
111.30 	have registered to vote in Minnesota and who indicated a prior registration in their state.
111.31 	(b) The secretary of state shall establish a precinct finder that must be maintained 
111.32 	by each county auditor. The precinct finder must identify the voting precinct that will be 
111.33 	assigned to the applicant. For the purposes of redistricting, the secretary of state shall 
111.34 	include geographical data from the United States Census Bureau in the precinct finder.

112.1 	Sec. 46. [206A.04] INTERACTION WITH DEPARTMENT OF PUBLIC 
112.2 	SAFETY.
112.3 	The secretary of state, in cooperation with the commissioner of public safety, shall 
112.4 	develop a single unified application for use by the Department of Public Safety to permit 
112.5 	eligible voters who have indicated they wish to register to vote to simultaneously register 
112.6 	to vote and apply for a driver's license or state identification card. The secretary of state 
112.7 	and the commissioner of public safety may access a common database of information 
112.8 	entered from this application.
112.9 	The information from the unified application for voter registration and a 
112.10 	driver's license or state identification card must be transferred electronically from the 
112.11 	commissioner of public safety to the secretary of state. The secretary of state shall make 
112.12 	available to each county auditor the data necessary to add or update a voter record on the 
112.13 	statewide registration system. The county auditor shall process the data in the manner 
112.14 	provided in section 206A.03.

112.15 	Sec. 47. [206A.05] SECURITY FOR STATEWIDE REGISTRATION SYSTEM.
112.16 	All authorized users of the statewide registration system must be identified uniquely 
112.17 	in the manner provided by the secretary of state. No access to the statewide registration 
112.18 	system will be allowed to any person not identified as an authorized user of the system.
112.19 	To ensure that information obtained from the statewide registration system is 
112.20 	being used in the manner provided by law, the secretary of state shall insert verification 
112.21 	records into the statewide registration system. The verification records must not be 
112.22 	included on any master list or polling place roster. If the secretary of state has reason to 
112.23 	believe that information obtained from the statewide registration system was used in a 
112.24 	manner inconsistent with section 201.091, a report must be immediately transmitted to 
112.25 	the appropriate county attorney.

112.26 	Sec. 48. Minnesota Statutes 2004, section 211B.04, is amended to read:
112.27 	211B.04 CAMPAIGN LITERATURE MUST INCLUDE DISCLAIMER.
112.28 	(a) A person who participates in the preparation or dissemination of campaign 
112.29 	material other than as provided in section  211B.05, subdivision 1, that does not 
112.30 	prominently include the name and address of the person or committee causing the material 
112.31 	to be prepared or disseminated in a disclaimer substantially in the form provided in 
112.32 	paragraph (b) or (c) is guilty of a misdemeanor. 
112.33 	(b) Except in cases covered by paragraph (c), the required form of disclaimer is: 
112.34 	"Prepared and paid for by the .......... committee, .........(address)" for material prepared 
113.1 	and paid for by a principal campaign committee, or "Prepared and paid for by the .......... 
113.2 	committee, .........(address), in support of .........(insert name of candidate or ballot 
113.3 	question)" for material prepared and paid for by a person or committee other than a 
113.4 	principal campaign committee.
113.5 	(c) In the case of broadcast media, the required form of disclaimer is: "Paid for by 
113.6 	the ............ committee."
113.7 	(d) Campaign material that is not circulated on behalf of a particular candidate 
113.8 	or ballot question must also include in the disclaimer either that it is "in opposition to 
113.9 	.....(insert name of candidate or ballot question.....)"; or that "this publication is not 
113.10 	circulated on behalf of any candidate or ballot question."
113.11 	(e) This section does not apply to objects stating only the candidate's name and 
113.12 	the office sought, fund-raising tickets, or personal letters that are clearly being sent by 
113.13 	the candidate.
113.14 	(f) This section does not apply to a magnet, sticker, or button less than six inches in 
113.15 	diameter. 
113.16 	(g) This section does not apply to an individual or association who acts independently 
113.17 	of any candidate, candidate's committee, political committee, or political fund and spends 
113.18 	only from the individual's or association's own resources a sum that is less than $500 in 
113.19 	the aggregate to produce or distribute campaign material that is distributed at least seven 
113.20 	days before the election to which the campaign material relates.
113.21 	(g) (h) This section does not modify or repeal section  211B.06. 

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

113.23 	Sec. 49. Minnesota Statutes 2004, section 211B.11, subdivision 1, is amended to read:
113.24 		Subdivision 1.Soliciting near polling places. A person may not display campaign 
113.25 	material, post signs, ask, solicit, or in any manner try to induce or persuade a voter within 
113.26 	a polling place or within 100 feet of the building in which a polling place is situated, 
113.27 	or anywhere on the public property on which a polling place is situated, on primary or 
113.28 	election day to vote for or refrain from voting for a candidate or ballot question.
113.29 	(a) On primary or election day, a person may not:
113.30 	(1) display campaign material or post signs within 300 feet of the building in which 
113.31 	a polling place is situated, or anywhere on the public property on which a polling place 
113.32 	is situated; or 
113.33 	(2) ask, solicit, or in any manner try to induce or persuade a voter, within 1,000 
113.34 	feet of the building in which a polling place is situated, or anywhere on public property 
114.1 	on which a polling place is situated, to vote for or refrain from voting for a candidate 
114.2 	or ballot question.
114.3 	(b) A person may not keep a record of individuals arriving at or departing from 
114.4 	the polling place or, within 100 feet of the polling place, ask whether an individual has 
114.5 	voted in the election.
114.6 	(c) A person may not provide political badges, political buttons, or other political 
114.7 	insignia to be worn at or about the polling place on the day of a primary or election. A 
114.8 	political badge, political button, or other political insignia may not be worn at or about the 
114.9 	polling place on primary or election day. 
114.10 	(d) This section applies to areas established by the county auditor or municipal clerk 
114.11 	for absentee voting as provided in chapter 203B.
114.12 	(e) The secretary of state, county auditor, municipal clerk, or school district clerk 
114.13 	may provide stickers which contain the words "I VOTED" and nothing more. Election 
114.14 	judges may offer a sticker of this type to each voter who has signed the polling place roster.

114.15 	Sec. 50. Minnesota Statutes 2005 Supplement, section 211B.13, subdivision 1, is 
114.16 	amended to read:
114.17 		Subdivision 1.Bribery, advancing money, and treating prohibited. A person 
114.18 	who willfully, directly or indirectly, advances, pays, gives, promises, or lends any money, 
114.19 	food, liquor, clothing, entertainment, or other thing of monetary value, or who offers, 
114.20 	promises, or endeavors to obtain any money, position, appointment, employment, or other 
114.21 	valuable consideration, to or for a person, in order to induce a voter to refrain from voting, 
114.22 	or to vote in a particular way, at an election, is guilty of a felony. This section does not 
114.23 	prevent a candidate from stating publicly preference for or support of another candidate 
114.24 	to be voted for at the same primary or election. Refreshments of food or nonalcoholic 
114.25 	beverages having a value up to $5 consumed and provided only for consumption on 
114.26 	the premises at a private gathering or public meeting, private fundraising event, or a 
114.27 	constituent service event held by an elected official and open to the general public are 
114.28 	not prohibited under this section.

114.29 	Sec. 51. Minnesota Statutes 2004, section 211B.15, subdivision 1, is amended to read:
114.30 		 Subdivision 1.Definitions.  For purposes of this section, "corporation" means:
114.31 	 (1) a corporation organized for profit that does business in this state;
114.32 	 (2) a nonprofit corporation that carries out activities in this state; or
114.33 	 (3) a limited liability company formed under chapter 322B, or under similar laws of 
114.34 	another state, that does business in this state; or 
115.1 	(4) a business entity established or operated by a foreign government or by an entity 
115.2 	or subdivision of an entity that exercises governmental functions for purposes of Public 
115.3 	Law 97-473, Title II.

115.4 	Sec. 52. [211B.153] CONTRIBUTIONS FROM GOVERNMENT UNITS.
115.5 	A candidate or the treasurer of a candidate's principal campaign committee must not 
115.6 	accept a contribution from any foreign government or any state or local government unit in 
115.7 	this state or in any other state.  For purposes of this subdivision, "government unit" means 
115.8 	any state agency, board, commission, or department; or any county, statutory or home 
115.9 	rule charter city, town, school district, special district, or any local board, commission, 
115.10 	district, or authority created pursuant to law or local ordinance.  A candidate or treasurer 
115.11 	who accepts a contribution prohibited by this section or a government unit that makes a 
115.12 	contribution prohibited by this section is subject to a civil penalty not greater than $40,000.

115.13 	Sec. 53. INTERNET CAMPAIGN REPORTING AND PUBLIC SUBSIDY 
115.14 	PAYMENT STUDY.
 115.15 	A work group is established to study the feasibility of creating an online campaign 
115.16 	finance reporting and public subsidy payment system. The work group must study the 
115.17 	initial costs and long-term savings of creating a system for filing online all reports required 
115.18 	by Minnesota Statutes, chapter 10A, and for electronically making subsidy payments 
115.19 	under Minnesota Statutes, chapter 10A. The work group must report to the chairs of the 
115.20 	committees with jurisdiction over election and campaign finance law in the senate and 
115.21 	house of representatives by January 15, 2009.
115.22 	The work group shall consist of one member of the Campaign Finance and Public 
115.23 	Disclosure Board designated by the chair of the board, three members appointed by the 
115.24 	governor, three members appointed by the speaker of the house, and three members 
115.25 	appointed by the senate Committee on Committees.
115.26 	The Campaign Finance and Public Disclosure Board and the Department of Revenue 
115.27 	must provide staff resources to the work group.

115.28 	EFFECTIVE DATE. This section is effective January 1, 2008.

115.29 	Sec. 54. ELECTIONS RULES.
 115.30 	(a) The rules adopted by the Office of the Secretary of State on August 9, 2004, 
115.31 	pursuant to the authority granted in Laws 2004, chapter 293, article 1, section 39, are made 
115.32 	permanent as if they had been adopted pursuant to Minnesota Statutes, sections 14.05 to 
115.33 	14.28, with only the following express exceptions:
116.1 	(b) The secretary of state shall amend the rules pursuant to the good cause provision 
116.2 	in section 14.88, subdivision 1, clause (3), as follows: 
116.3 	(1) The secretary of state shall amend Minnesota Rules, parts 8200.1100, 8200.1200, 
116.4 	8200.1700, 8200.3700, and 8200.9310, subpart 4 so that effective August 10, 2006, these 
116.5 	rules are identical to the language contained in them on August 8, 2004.
116.6 	(2) The secretary of state shall amend Minnesota Rules, part 8200.9115, subpart 1, 
116.7 	effective August 10, 2006, so that the certification at the top of each page of the polling 
116.8 	place roster includes the statement that the individual is not under a guardianship of 
116.9 	the person in which the court order revokes the individual's right to vote; and that the 
116.10 	individual has the right to vote because, if convicted of a felony, the individual's felony 
116.11 	sentence has expired (been completed) or the individual has been discharged from the 
116.12 	individual's sentence.
116.13 	(3) The secretary of state shall amend Minnesota Rules, part 8210.0100, subpart 
116.14 	2, effective August 10, 2006, so that the form of the affidavit of eligibility includes 
116.15 	certification by the individual that the individual is not under a guardianship of the person 
116.16 	in which the court order revokes the individual's right to vote, and that the individual has 
116.17 	the right to vote because, if convicted of a felony, the individual's felony sentence has 
116.18 	expired (been completed) or the individual has been discharged from the individual's 
116.19 	sentence.
116.20 	(4) The secretary of state shall amend Minnesota Rules, part 8210.0500, subpart 
116.21 	2, effective August 10, 2006, to:
116.22 	(i) add cellular telephone to the list in Step 3, item b, subitem (i); 
116.23 	(ii) add a tribal identification card as provided in Minnesota Statutes, section 
116.24 	201.061, subdivision 3, to the list in Step 3, item b, subitem (ii); 
116.25 	(iii) repeal Step 3, item f; and
116.26 	(iv) add a new Step to be numbered Step 10 and placed between the current Step 
116.27 	9 and Step 10 that directs the voter, if the voter has been provided with an additional 
116.28 	envelope to conceal the signature, identification, and other information, to place the white 
116.29 	ballot return envelope into the additional envelope; and directs the voter, if the voter has 
116.30 	been provided a white ballot envelope with an additional flap that when sealed, conceals 
116.31 	the signature, identification, and other information, to make sure that the flap is properly in 
116.32 	place to conceal that information.
116.33 	(5) The secretary of state shall amend Minnesota Rules, part 8200.5100, subpart 2, 
116.34 	item B, to add cellular telephone to the list in that item.

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

117.1 	Sec. 55.  REPEALER.
 117.2 	(a) Minnesota Statutes 2004, sections 10A.257, subdivision 1; 10A.273, subdivision 
117.3 	3; and 204C.50, subdivisions 3, 4, 5, and 6, are repealed.
117.4 	(b) Laws 2005, chapter 162, section 34, subdivision 7, is repealed.
117.5 	(c) Minnesota Statutes 2005 Supplement, section 204C.50, subdivisions 1 and 2, 
117.6 	are repealed.

117.7 	ARTICLE 4
117.8 	CONFORMING AMENDMENTS

117.9 	Section 1. Minnesota Statutes 2004, section 123B.63, subdivision 3, is amended to read:
117.10 		Subd. 3.Capital project levy referendum. A district may levy the local tax 
117.11 	rate approved by a majority of the electors voting on the question to provide funds for 
117.12 	an approved project. The election must take place no more than five years before the 
117.13 	estimated date of commencement of the project. The referendum must be held on a date 
117.14 	set by the board that complies with section 204D.035. A referendum for a project not 
117.15 	receiving a positive review and comment by the commissioner under section  123B.71
117.16 	must be approved by at least 60 percent of the voters at the election. The referendum may 
117.17 	be called by the school board and may be held: 
117.18 	(1) separately, before an election for the issuance of obligations for the project 
117.19 	under chapter 475; or
117.20 	(2) in conjunction with an election for the issuance of obligations for the project 
117.21 	under chapter 475; or
117.22 	(3) notwithstanding section  475.59, as a conjunctive question authorizing both the 
117.23 	capital project levy and the issuance of obligations for the project under chapter 475. Any 
117.24 	obligations authorized for a project may be issued within five years of the date of the 
117.25 	election. 
117.26 	The ballot must provide a general description of the proposed project, state the 
117.27 	estimated total cost of the project, state whether the project has received a positive or 
117.28 	negative review and comment from the commissioner, state the maximum amount of the 
117.29 	capital project levy as a percentage of net tax capacity, state the amount that will be raised 
117.30 	by that local tax rate in the first year it is to be levied, and state the maximum number of 
117.31 	years that the levy authorization will apply.
117.32 	The ballot must contain a textual portion with the information required in this 
117.33 	section and a question stating substantially the following:
117.34 	"Shall the capital project levy proposed by the board of .......... School District 
117.35 	No. .......... be approved?"
118.1 	If approved, the amount provided by the approved local tax rate applied to the 
118.2 	net tax capacity for the year preceding the year the levy is certified may be certified for 
118.3 	the number of years approved.
118.4 	In the event a conjunctive question proposes to authorize both the capital project 
118.5 	levy and the issuance of obligations for the project, appropriate language authorizing the 
118.6 	issuance of obligations must also be included in the question.
118.7 	The district must notify the commissioner of the results of the referendum.

118.8 	Sec. 2. Minnesota Statutes 2004, section 126C.17, subdivision 11, is amended to read:
118.9 		Subd. 11.Referendum date. (a) Except for a referendum held under paragraph 
118.10 	(b), any referendum under this section held on a day other than the first Tuesday after 
118.11 	the first Monday in November must be conducted by mail in accordance with section  
118.12 	204B.46. Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a 
118.13 	referendum conducted by mail under this paragraph, the notice required by subdivision 9, 
118.14 	paragraph (b), must be prepared and delivered by first-class mail at least 20 days before 
118.15 	the referendum. 
118.16 	(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner 
118.17 	may grant authority to a district to hold a referendum on a different day if the district is in 
118.18 	statutory operating debt and has an approved plan or has received an extension from the 
118.19 	department to file a plan to eliminate the statutory operating debt. A referendum must be 
118.20 	held on a date that complies with section 204D.035. 
118.21 	(c) The commissioner must approve, deny, or modify each district's request for a 
118.22 	referendum levy on a different day within 60 days of receiving the request from a district.

118.23 	Sec. 3. Minnesota Statutes 2004, section 205.10, subdivision 3, is amended to read:
118.24 		Subd. 3.Prohibition. No A special election authorized under subdivision 1 may 
118.25 	be held within 40 days after the state general election only on a date that complies with 
118.26 	section 204D.035.

118.27 	Sec. 4. Minnesota Statutes 2004, section 205A.05, subdivision 1, is amended to read:
118.28 		Subdivision 1.Questions. Special elections must be held for a school district on a 
118.29 	question on which the voters are authorized by law to pass judgment. The school board 
118.30 	may on its own motion call a special election to vote on any matter requiring approval of 
118.31 	the voters of a district. Upon petition of 50 or more voters of the school district or five 
118.32 	percent of the number of voters voting at the preceding regular school district election, 
118.33 	the school board shall by resolution call a special election to vote on any matter requiring 
119.1 	approval of the voters of a district. A question is carried only with the majority in its 
119.2 	favor required by law. The election officials for a special election are the same as for the 
119.3 	most recent school district general election unless changed according to law. Otherwise, 
119.4 	special elections must be conducted and the returns made in the manner provided for the 
119.5 	school district general election. A special election may not be held during the 30 days 
119.6 	before and the 30 days after the state primary, during the 30 days before and the 40 days 
119.7 	after the state general election. In addition, a special election may not be held on a date 
119.8 	that conflicts with section 204D.035; or during the 20 days before and the 20 days after 
119.9 	any regularly scheduled election of a municipality wholly or partially within the school 
119.10 	district. Notwithstanding any other law to the contrary, the time period in which a special 
119.11 	election must be conducted under any other law may be extended by the school board to 
119.12 	conform with the requirements of this subdivision.

119.13 	Sec. 5. Minnesota Statutes 2004, section 373.40, subdivision 2, is amended to read:
119.14 		Subd. 2.Application of election requirement. (a) Bonds issued by a county 
119.15 	to finance capital improvements under an approved capital improvement plan are not 
119.16 	subject to the election requirements of section  375.18 or  475.58. The bonds must be 
119.17 	approved by vote of at least three-fifths of the members of the county board. In the case 
119.18 	of a metropolitan county, the bonds must be approved by vote of at least two-thirds of 
119.19 	the members of the county board. 
119.20 	(b) Before issuance of bonds qualifying under this section, the county must publish 
119.21 	a notice of its intention to issue the bonds and the date and time of a hearing to obtain 
119.22 	public comment on the matter. The notice must be published in the official newspaper 
119.23 	of the county or in a newspaper of general circulation in the county. The notice must be 
119.24 	published at least 14, but not more than 28, days before the date of the hearing.
119.25 	(c) A county may issue the bonds only upon obtaining the approval of a majority 
119.26 	of the voters voting on the question of issuing the obligations, if a petition requesting a 
119.27 	vote on the issuance is signed by voters equal to five percent of the votes cast in the 
119.28 	county in the last general election and is filed with the county auditor within 30 days after 
119.29 	the public hearing. The commissioner of revenue shall prepare a suggested form of the 
119.30 	question to be presented at the election. The election may be held only on a date that 
119.31 	complies with section 204D.035. 

119.32 	Sec. 6. Minnesota Statutes 2004, section 375.20, is amended to read:
119.33 	375.20 BALLOT QUESTIONS.
120.1 	If the county board may do an act, incur a debt, appropriate money for a purpose, 
120.2 	or exercise any other power or authority, only if authorized by a vote of the people, the 
120.3 	question may be submitted at a special or general election, by a resolution specifying the 
120.4 	matter or question to be voted upon. If the question is to authorize the appropriation of 
120.5 	money, creation of a debt, or levy of a tax, it shall state the amount. Notice of the election 
120.6 	shall be given as in the case of special elections. If the question submitted is adopted, 
120.7 	the board shall pass an appropriate resolution to carry it into effect. In the election the 
120.8 	form of the ballot shall be: "In favor of (here state the substance of the resolution to be 
120.9 	submitted), Yes ...... No......," with a square opposite each of the words "yes" and "no," in 
120.10 	one of which the voter shall mark an "X" to indicate a choice. The county board may call 
120.11 	a special county election upon a question to be held within 60 days on a date that complies 
120.12 	with section 204D.035, after a resolution to that effect is adopted by the county board. 
120.13 	Upon the adoption of the resolution the county auditor shall post and publish notices of 
120.14 	the election, as required by section  204D.22, subdivisions 2 and 3. The election shall be 
120.15 	conducted and the returns canvassed in the manner prescribed by sections  204D.20 to  
120.16 	204D.27, so far as practicable. 

120.17 	Sec. 7. Minnesota Statutes 2004, section 412.02, subdivision 2a, is amended to read:
120.18 		Subd. 2a.Vacancy. Except as otherwise provided in subdivision 2b, a vacancy in an 
120.19 	office shall be filled by council appointment until an election is held as provided in this 
120.20 	subdivision. In case of a tie vote in the council, the mayor shall make the appointment. If 
120.21 	the vacancy occurs before the first day to file affidavits of candidacy for the next regular 
120.22 	city election and more than two years remain in the unexpired term, a special election shall 
120.23 	be held at or before the next regular city election and the appointed person shall serve until 
120.24 	the qualification of a successor elected at a special election to fill the unexpired portion of 
120.25 	the term. A special election under this subdivision must be held on a date that complies 
120.26 	with section 204D.035. If the vacancy occurs on or after the first day to file affidavits of 
120.27 	candidacy for the regular city election or when less than two years remain in the unexpired 
120.28 	term, there need not be a special election to fill the vacancy and the appointed person shall 
120.29 	serve until the qualification of a successor. The council must specify by ordinance under 
120.30 	what circumstances it will hold a special election to fill a vacancy other than a special 
120.31 	election held at the same time as the regular city election.

120.32 	Sec. 8. Minnesota Statutes 2004, section 458.40, is amended to read:
120.33 	458.40 MUST VOTE TO ISSUE BONDS IF CHARTER SAYS SO.
121.1 	If a charter adopted under the Minnesota Constitution, article IV, section 36, article 
121.2 	XI, section 4, or article XII, section 5, has a provision that requires the question of the 
121.3 	issuance of bonds to be submitted to the electors, the provision prevails over sections  
121.4 	458.36 to  458.40. The question must be submitted to the voters on a date that complies 
121.5 	with section 204D.035, notwithstanding any contrary provision in the charter regarding 
121.6 	the date of submission. 

121.7 	Sec. 9. Minnesota Statutes 2004, section 465.82, subdivision 2, is amended to read:
121.8 		Subd. 2.Contents of plan. The plan must state:
121.9 	(1) the specific cooperative activities the units will engage in during the first two 
121.10 	years of the venture;
121.11 	(2) the steps to be taken to effect the merger of the governmental units, with 
121.12 	completion no later than four years after the process begins;
121.13 	(3) the steps by which a single governing body will be created or, when the entire 
121.14 	territory of a unit will be apportioned between or among two or more units contiguous 
121.15 	to the unit that is to be apportioned, the steps to be taken by the governing bodies of the 
121.16 	remaining units to provide for representation of the residents of the apportioned unit;
121.17 	(4) changes in services provided, facilities used, and administrative operations and 
121.18 	staffing required to effect the preliminary cooperative activities and the final merger, and 
121.19 	a two-, five-, and ten-year projection of expenditures for each unit if it combined and 
121.20 	if it remained separate;
121.21 	(5) treatment of employees of the merging governmental units, specifically including 
121.22 	provisions for reassigning employees, dealing with exclusive representatives, and 
121.23 	providing financial incentives to encourage early retirements;
121.24 	(6) financial arrangements for the merger, specifically including responsibility for 
121.25 	debt service on outstanding obligations of the merging units;
121.26 	(7) one- and two-year impact analyses, prepared by the granting state agency at the 
121.27 	request of the local government unit, of major state aid revenues received for each unit 
121.28 	if it combined and if it remained separate, including an impact analysis, prepared by the 
121.29 	Department of Revenue, of any property tax revenue implications associated with tax 
121.30 	increment financing districts and fiscal disparities under chapter 276A or 473F resulting 
121.31 	from the merger;
121.32 	(8) procedures for a referendum to be held on a date that complies with section 
121.33 	204D.035, before the proposed combination to approve combining the local government 
121.34 	units, specifically stating whether a majority of those voting in each district proposed for 
122.1 	combination or a majority of those voting on the question in the entire area proposed for 
122.2 	combination is needed to pass the referendum; and
122.3 	(9) a time schedule for implementation.
122.4 	Notwithstanding clause (3) or any other law to the contrary, all current members of 
122.5 	the governing bodies of the local government units that propose to combine under sections  
122.6 	465.81 to  465.86 may serve on the initial governing body of the combined unit until a 
122.7 	gradual reduction in membership is achieved by foregoing election of new members when 
122.8 	terms expire until the number permitted by other law is reached. 

122.9 	Sec. 10. Minnesota Statutes 2004, section 465.84, is amended to read:
122.10 	465.84 REFERENDUM.
122.11 	During the first or second year of cooperation, a referendum on the question of 
122.12 	combination must be conducted. The referendum must be on a date that complies with 
122.13 	section 204D.035, and must be called by the governing bodies of the units that propose to 
122.14 	combine. The referendum must be conducted according to the Minnesota Election Law, 
122.15 	as defined in section  200.01. If the referendum fails, the same question or a modified 
122.16 	question may be submitted the following year. If the referendum fails again, the same 
122.17 	question may not be submitted. Referendums shall be conducted on the same date in all 
122.18 	local government units. 

122.19 	Sec. 11. Minnesota Statutes 2004, section 469.053, subdivision 5, is amended to read:
122.20 		Subd. 5.Reverse referendum. A city may increase its levy for port authority 
122.21 	purposes under subdivision 4 only as provided in this subdivision. Its city council must 
122.22 	first pass a resolution stating the proposed amount of levy increase. The city must then 
122.23 	publish the resolution together with a notice of public hearing on the resolution for 
122.24 	two successive weeks in its official newspaper or, if none exists, in a newspaper of 
122.25 	general circulation in the city. The hearing must be held two to four weeks after the 
122.26 	first publication. After the hearing, the city council may decide to take no action or may 
122.27 	adopt a resolution authorizing the proposed increase or a lesser increase. A resolution 
122.28 	authorizing an increase must be published in the city's official newspaper or, if none 
122.29 	exists, in a newspaper of general circulation in the city. The resolution is not effective if a 
122.30 	petition requesting a referendum on the resolution is filed with the city clerk within 30 
122.31 	days of publication of the resolution. The petition must be signed by voters equaling five 
122.32 	percent of the votes cast in the city in the last general election. The resolution is effective 
122.33 	if approved by a majority of those voting on the question. The commissioner of revenue 
122.34 	shall prepare a suggested form of referendum question. The referendum must be held at 
123.1 	a special or general election before October 1 of on a date that complies with section 
123.2 	204D.035 in the year for which the levy increase is proposed.

123.3 	Sec. 12. Minnesota Statutes 2004, section 469.0724, is amended to read:
123.4 	469.0724 GENERAL OBLIGATION BONDS.
123.5 	The port authority of Cannon Falls or Redwood Falls must not proceed with the sale 
123.6 	of general obligation tax supported bonds until the city council by resolution approves the 
123.7 	proposed issuance. The resolution must be published in the official newspaper. If, within 
123.8 	30 days after the publication, a petition signed by voters equal in number to ten percent of 
123.9 	the number of voters at the last regular city election is filed with the city clerk, the city 
123.10 	and port authority must not issue the general obligation tax supported bonds until the 
123.11 	proposition has been approved by a majority of the votes cast on the question at a regular 
123.12 	or special election held on a date that complies with section 204D.035.

123.13 	Sec. 13. Minnesota Statutes 2004, section 469.190, subdivision 5, is amended to read:
123.14 		Subd. 5.Reverse referendum. If the county board passes a resolution under 
123.15 	subdivision 4 to impose the tax, the resolution must be published for two successive 
123.16 	weeks in a newspaper of general circulation within the unorganized territory, together with 
123.17 	a notice fixing a date for a public hearing on the proposed tax.
123.18 	The hearing must be held not less than two weeks nor more than four weeks after the 
123.19 	first publication of the notice. After the public hearing, the county board may determine to 
123.20 	take no further action, or may adopt a resolution authorizing the tax as originally proposed 
123.21 	or approving a lesser rate of tax. The resolution must be published in a newspaper of 
123.22 	general circulation within the unorganized territory. The voters of the unorganized 
123.23 	territory may request a referendum on the proposed tax by filing a petition with the county 
123.24 	auditor within 30 days after the resolution is published. The petition must be signed by 
123.25 	voters who reside in the unorganized territory. The number of signatures must equal at 
123.26 	least five percent of the number of persons voting in the unorganized territory in the last 
123.27 	general election. If such a petition is timely filed, the resolution is not effective until it has 
123.28 	been submitted to the voters residing in the unorganized territory at a general or special 
123.29 	election held on a date that complies with section 204D.035, and a majority of votes cast 
123.30 	on the question of approving the resolution are in the affirmative. The commissioner of 
123.31 	revenue shall prepare a suggested form of question to be presented at the referendum.

123.32 	Sec. 14. Minnesota Statutes 2005 Supplement, section 475.521, subdivision 2, is 
123.33 	amended to read:
124.1 		Subd. 2.Election requirement. (a) Bonds issued by a municipality to finance 
124.2 	capital improvements under an approved capital improvements plan are not subject to the 
124.3 	election requirements of section 475.58. The bonds must be approved by an affirmative 
124.4 	vote of three-fifths of the members of a five-member governing body. In the case of a 
124.5 	governing body having more or less than five members, the bonds must be approved by a 
124.6 	vote of at least two-thirds of the members of the governing body.
124.7 	(b) Before the issuance of bonds qualifying under this section, the municipality 
124.8 	must publish a notice of its intention to issue the bonds and the date and time of the 
124.9 	hearing to obtain public comment on the matter. The notice must be published in the 
124.10 	official newspaper of the municipality or in a newspaper of general circulation in the 
124.11 	municipality. Additionally, the notice may be posted on the official Web site, if any, of the 
124.12 	municipality. The notice must be published at least 14 but not more than 28 days before 
124.13 	the date of the hearing.
124.14 	(c) A municipality may issue the bonds only after obtaining the approval of a 
124.15 	majority of the voters voting on the question of issuing the obligations, if a petition 
124.16 	requesting a vote on the issuance is signed by voters equal to five percent of the votes cast 
124.17 	in the municipality in the last general election and is filed with the clerk within 30 days 
124.18 	after the public hearing. The commissioner of revenue shall prepare a suggested form of 
124.19 	the question to be presented at the election. The election must be held on a date that 
124.20 	complies with section 204D.035. 

124.21 	Sec. 15. Minnesota Statutes 2004, section 475.58, subdivision 1, is amended to read:
124.22 		Subdivision 1.Approval by electors; exceptions. Obligations authorized by law 
124.23 	or charter may be issued by any municipality upon obtaining the approval of a majority 
124.24 	of the electors voting at a special or general election held on a date that complies with 
124.25 	section 204D.035 on the question of issuing the obligations, but an election shall not be 
124.26 	required to authorize obligations issued:
124.27 	(1) to pay any unpaid judgment against the municipality;
124.28 	(2) for refunding obligations;
124.29 	(3) for an improvement or improvement program, which obligation is payable 
124.30 	wholly or partly from the proceeds of special assessments levied upon property specially 
124.31 	benefited by the improvement or by an improvement within the improvement program, or 
124.32 	of taxes levied upon the increased value of property within a district for the development 
124.33 	of which the improvement is undertaken, including obligations which are the general 
124.34 	obligations of the municipality, if the municipality is entitled to reimbursement in whole 
124.35 	or in part from the proceeds of such special assessments or taxes and not less than 20 
125.1 	percent of the cost of the improvement or the improvement program is to be assessed 
125.2 	against benefited property or is to be paid from the proceeds of federal grant funds or a 
125.3 	combination thereof, or is estimated to be received from such taxes within the district;
125.4 	(4) payable wholly from the income of revenue producing conveniences;
125.5 	(5) under the provisions of a home rule charter which permits the issuance of 
125.6 	obligations of the municipality without election;
125.7 	(6) under the provisions of a law which permits the issuance of obligations of a 
125.8 	municipality without an election;
125.9 	(7) to fund pension or retirement fund liabilities pursuant to section  475.52, 
125.10 	subdivision 6; 
125.11 	(8) under a capital improvement plan under section  373.40; and 
125.12 	(9) under sections  469.1813 to  469.1815 (property tax abatement authority bonds), if 
125.13 	the proceeds of the bonds are not used for a purpose prohibited under section  469.176, 
125.14 	subdivision 4g, paragraph (b). 

125.15 	Sec. 16. Minnesota Statutes 2004, section 475.58, subdivision 1a, is amended to read:
125.16 		Subd. 1a.Resubmission limitation. If the electors do not approve the issuing 
125.17 	of obligations at an election required by subdivision 1, the question of authorizing the 
125.18 	obligations for the same purpose and in the same amount may not be submitted to the 
125.19 	electors within a period of until a special or general election held on a date that complies 
125.20 	with section 204D.035, and not sooner than 180 days from the date the election was held. 
125.21 	If the question of authorizing the obligations for the same purpose and in the same amount 
125.22 	is not approved a second time it may not be submitted to the electors within a period of 
125.23 	one year after the second election.

125.24 	Sec. 17. Minnesota Statutes 2004, section 475.59, is amended to read:
125.25 	475.59 MANNER OF SUBMISSION; NOTICE.
125.26 	When the governing body of a municipality resolves to issue bonds for any purpose 
125.27 	requiring the approval of the electors, it shall provide for submission of the proposition of 
125.28 	their issuance at a general or special election held on a date that complies with section 
125.29 	204D.035, or at a town or school district meeting. Notice of such election or meeting 
125.30 	shall be given in the manner required by law and shall state the maximum amount and 
125.31 	the purpose of the proposed issue. In any school district, the school board or board 
125.32 	of education may, according to its judgment and discretion, submit as a single ballot 
125.33 	question or as two or more separate questions in the notice of election and ballots the 
125.34 	proposition of their issuance for any one or more of the following, stated conjunctively or 
126.1 	in the alternative: acquisition or enlargement of sites, acquisition, betterment, erection, 
126.2 	furnishing, equipping of one or more new schoolhouses, remodeling, repairing, improving, 
126.3 	adding to, betterment, furnishing, equipping of one or more existing schoolhouses. 
126.4 	In any city, town, or county, the governing body may, according to its judgment and 
126.5 	discretion, submit as a single ballot question or as two or more separate questions in 
126.6 	the notice of election and ballots the proposition of their issuance, stated conjunctively 
126.7 	or in the alternative, for the acquisition, construction, or improvement of any facilities 
126.8 	at one or more locations.

126.9 	ARTICLE 5
126.10 	MILITARY VETERANS

126.11 	Section 1. Minnesota Statutes 2005 Supplement, section 43A.183, is amended to read:
126.12 	43A.183 PAYMENT OF SALARY DIFFERENTIAL FOR TO RESERVE 
126.13 	FORCES WHO REPORTED REPORT FOR ACTIVE SERVICE.
126.14 		Subdivision 1.Payment required. (a) Each agency head shall pay to each eligible 
126.15 	member of the National Guard or other reserve component of the United States armed 
126.16 	forces an amount equal to the person's salary differential for each month or portion of 
126.17 	month that the person is ordered to serve in active military service. The person's salary 
126.18 	differential is calculated as
126.19 	This payment may be made only to a person for whom the amount in subdivision 
126.20 	2, paragraph (b), clause (1), is greater than the amount in subdivision 2, paragraph (b), 
126.21 	clause (2). Payments must be made at the intervals at which the member received pay 
126.22 	as a state employee, except that any back pay due under this section may be paid as a 
126.23 	lump sum. Payment under this section must not extend beyond four years from the date 
126.24 	the employee reported for active service, plus any additional time the employee may 
126.25 	be legally required to serve. An eligible member may apply for the  salary differential 
126.26 	benefits authorized under this section prior to, during, or following the person's active 
126.27 	service on or after May 29, 2003.
126.28 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
126.29 	(b) "Salary differential" means the difference between:
126.30 	(1) the person's monthly total gross earnings as an active state employee, excluding 
126.31 	any overtime pay received but including all other earnings, averaged over the last three 
126.32 	full months of the person's active state employment prior to reporting to active military
126.33 	service, and including any additional salary or earnings adjustments that the person 
126.34 	would have received at any time during the person's military authorized leave from state 
126.35 	employment had the person been serving as an active state employee during that time; and
127.1 	(2) the person's monthly base pay in active military service.
127.2 	This payment may be made only to a person for whom the amount in clause (1) is 
127.3 	greater than the amount in clause (2). Payments must be made at the intervals at which 
127.4 	the member received pay as a state employee, except that any back pay due under this 
127.5 	section may be paid as a lump sum. Payment under this section must not extend beyond 
127.6 	four years from the date the employee reported for active service, plus any additional 
127.7 	time the employee may be legally required to serve. An eligible member of the National 
127.8 	Guard or other reserve component of the United States armed forces may apply for the 
127.9 	pay differential benefits authorized under this section prior to, during, or following the 
127.10 	person's active military service on or after May 29, 2003.
127.11 	(b) An eligible member of the reserve components(c) "Eligible member" means: 
127.12 	(1) any member of the National Guard or other reserve component of the United 
127.13 	States armed forces is a reservist or National Guard member who was an employee of 
127.14 	the state of Minnesota at the time the member took military leave under section 192.261
127.15 	to report for active military service; and 
127.16 	(2) any member of any other nonmilitary reserve component of the uniformed 
127.17 	services of the United States who was an employee of Minnesota at the time the member 
127.18 	took properly authorized leave from state employment under substantially comparable 
127.19 	federal or state authority ordering the person to report for federal or state active service.
127.20 	(c) For purposes of this section, an employee of the state is (d) "State employee" 
127.21 	means an employee of the executive, judicial, or legislative branch of state government or 
127.22 	an employee of the Minnesota State Retirement System, the Public Employee Retirement 
127.23 	Association, or the Teachers Retirement Association.
127.24 	(d) For purposes of this section, the term (e) "Active service" has the meaning 
127.25 	given in section 190.05, subdivision 5, for military members, and includes substantially 
127.26 	comparable service for reserve members of other nonmilitary components of the uniformed 
127.27 	services of the United States, but excludes service performed exclusively for purposes of:
127.28 	(1) basic combat training, advanced individual training, annual training, and periodic 
127.29 	inactive duty training;
127.30 	(2) special training periodically made available to reserve members;
127.31 	(3) service performed in accordance with section 190.08, subdivision 3; and
127.32 	(4) service performed as part of the active guard/reserve program pursuant to United 
127.33 	States Code, title 32, section 502(f), or other applicable authority, as well as substantially 
127.34 	comparable service by members of other nonmilitary components of the uniformed 
127.35 	services of the United States.
128.1 		Subd. 3.Health and dental coverage. (e) The agency head must continue the 
128.2 	employee's enrollment in health and dental coverage, and the employer contribution 
128.3 	toward that coverage, until the employee reports for active military service. If the 
128.4 	employee had elected dependent coverage for health or dental coverage as of the time that 
128.5 	the employee reported for active service, the agency head must offer the employee the 
128.6 	option to continue the dependent coverage at the employee's own expense. The agency 
128.7 	head must permit the employee to continue participating in any pretax account in which 
128.8 	the employee participated when the employee reported for active service, to the extent 
128.9 	of employee pay available for that purpose. An employee who has opted to continue a 
128.10 	permitted benefit may cancel that continuation at any time during the person's military
128.11 	authorized leave from state employment by written notification from the employee, or 
128.12 	from the employee's designated attorney-in-fact under a power of attorney, to the agency 
128.13 	head or the commissioner of employee relations.
128.14 		Subd. 4.Notice. (f) The agency head must periodically inform in writing all 
128.15 	agency personnel who are or may be members of the reserve component of the United 
128.16 	States armed forces or any other nonmilitary reserve component of the uniformed services 
128.17 	of the United States of the benefits provided under this section and of the procedures 
128.18 	relevant to securing those benefits, including, but not limited to, any procedures regarding 
128.19 	the continuation and discontinuation of any optional deductions. It will suffice to meet 
128.20 	this requirement if the agency head posts the information on the agency Web site in a 
128.21 	highly recognizable manner that can be easily found and understood by the employees 
128.22 	to whom it might apply.
128.23 	Upon being ordered to active duty service, the employee must notify the agency 
128.24 	head of that order in a timely manner and must provide to the agency head the name of 
128.25 	and contact information for the employee's designated attorney-in-fact under a power of 
128.26 	attorney. Prior to the commencement of the employee's military authorized leave from 
128.27 	state employment, the agency head must ensure the agency's receipt of that information 
128.28 	and immediately convey that information to the commissioners of finance and employee 
128.29 	relations, including any subsequent change in that designation by the employee. When 
128.30 	communicating with the employee during the person's military leave, the agency head and 
128.31 	the commissioners of finance and employee relations must immediately provide a copy of 
128.32 	the communication to the employee's designated attorney-in-fact. Those officials must 
128.33 	also honor requests for information or other appropriate directives from that designee on 
128.34 	behalf of the employee during the employee's military leave.
129.1 		Subd. 5.Procedures. (g) The commissioners of employee relations and finance 
129.2 	shall adopt procedures required to implement this section. The procedures are exempt 
129.3 	from chapter 14.
129.4 		Subd. 6.Exclusion. (h) This section does not apply to a judge, legislator, or 
129.5 	constitutional officer of the executive branch.

129.6 	EFFECTIVE DATE. This section is effective for Minnesota state employees 
129.7 	serving in active service on or after July 1, 2006.

129.8 	Sec. 2. Minnesota Statutes 2004, section 85.053, is amended by adding a subdivision 
129.9 	to read:
129.10 		Subd. 8.Military personnel on leave; exemption. (a) The provisions of this 
129.11 	section requiring a state park permit and regulating its display do not apply to a motor 
129.12 	vehicle being used by a person who is serving in active military service in any branch or 
129.13 	unit of the United States armed forces and who is stationed outside Minnesota, during 
129.14 	the period of active service and for 90 days immediately thereafter, if the person notifies 
129.15 	the park attendant on duty or other designee of the commissioner of the person's military 
129.16 	status at the time of usage. It is sufficient notice for the eligible person to temporarily affix 
129.17 	to the inside of the windshield of the vehicle in a visible manner the person's current 
129.18 	military orders and carries in the person's possession current military identification 
129.19 	attesting to the person's active or recent military status.
129.20 	(b) For purposes of this section, "active service" has the meaning given under section 
129.21 	190.05, subdivision 5c, when performed outside Minnesota.

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

129.23 	Sec. 3. Minnesota Statutes 2004, section 147.02, is amended by adding a subdivision 
129.24 	to read:
129.25 		Subd. 1a. Examination extension; active military service. Notwithstanding 
129.26 	subdivision 1, paragraph (c), clause (2), an applicant who is mobilized into active military 
129.27 	service, as defined in section 197.447, during the process of taking the United States 
129.28 	Medical Licensing Examination, but before passage of all steps, must have passed steps 
129.29 	one, two, and three within a ten-year period.  This ten-year period begins when the 
129.30 	applicant first passes either step one or two, as applicable.  Proof of active military service 
129.31 	must be submitted to the board on the forms and according to the timelines of the board.

129.32 	EFFECTIVE DATE. This section is effective retroactively from December 1, 2005.

130.1 	Sec. 4. [181.947] LEAVE FOR IMMEDIATE FAMILY MEMBERS OF 
130.2 	MILITARY PERSONNEL INJURED OR KILLED IN ACTIVE SERVICE.
130.3 		Subdivision 1.Definitions.  (a) The definitions in this subdivision apply to this 
130.4 	section.   
130.5 	(b) "Active service" has the meaning given in section 190.05, subdivision 5.
130.6 	(c) "Employee" means a person, independent contractor, or person working for an 
130.7 	independent contractor who performs services for compensation, in whatever form, for 
130.8 	an employer.
130.9 	(d) "Employer" means a person or entity located or doing business in this state 
130.10 	and having one or more employees, and includes the state and all political or other 
130.11 	governmental subdivisions of the state. 
130.12 	(e) "Immediate family member" means a person's parent, child, grandparents, 
130.13 	siblings, or spouse. 
130.14 		Subd. 2. Unpaid leave required.  An employer must grant up to ten working days 
130.15 	of a leave of absence without pay to an employee whose immediate family member, as a 
130.16 	member of the United States armed forces, has been injured or killed while engaged in 
130.17 	active service. 
130.18 		Subd. 3. Notice.  An employee must give as much notice to the employee's employer 
130.19 	as practicable of the employee's intent to exercise the leave guaranteed by this section. 
130.20 		Subd. 4. Relationship to other leave.  The length of leave provided under this 
130.21 	section may be reduced by any period of paid leave provided by the employer. Nothing 
130.22 	in this section prevents an employer from providing leave benefits in addition to those 
130.23 	provided in this section or otherwise affects an employee's rights with respect to other 
130.24 	employment benefits. 

130.25 	EFFECTIVE DATE. This section is effective the day following final enactment 
130.26 	and applies to the immediate family members of military personnel injured or killed on or 
130.27 	after that date, as well as to the immediate family members of military personnel who, on 
130.28 	the effective date, are recovering from injuries that occurred prior to that date.

130.29 	Sec. 5. [181.948] LEAVE TO ATTEND MILITARY CEREMONIES.
130.30 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
130.31 	have the meaning given to them in this subdivision.
130.32 	(b) "Active service" has the meaning given in section 190.05, subdivision 5.
130.33 	(c) "Employee" means a person who performs services for compensation, in 
130.34 	whatever form, for an employer. Employee does not include an independent contractor. 
131.1 	(d) "Employer" means a person or entity located or doing business in this state 
131.2 	and having one or more employees, and includes the state and all political or other 
131.3 	governmental subdivisions of the state.
131.4 	(e) "Immediate family member" means a person's grandparent, parent, legal 
131.5 	guardian, sibling, child, grandchild, spouse, fiance, or fiancee.
131.6 		Subd. 2.Unpaid leave required. Unless the leave would unduly disrupt the 
131.7 	operations of the employer, an employer shall grant a leave of absence without pay to an 
131.8 	employee whose immediate family member, as a member of the United States armed 
131.9 	forces, has been ordered into active service in support of a war or other national emergency. 
131.10 	The employer may limit the amount of leave provided under this subdivision to the actual 
131.11 	time necessary for the employee to attend a send-off or homecoming ceremony for the 
131.12 	mobilized service member, not to exceed one day's duration in any calendar year. 

131.13 	Sec. 6. [190.001] POLICY STATEMENT.
131.14 	In recognition of the necessity of maintaining a strong military force for the 
131.15 	protection and survival of this state and nation and of free and democratic allied 
131.16 	societies throughout the world, and of the numerous and varied sacrifices required of 
131.17 	military personnel and their families both in peacetime and war, and of the exemplary 
131.18 	character, courage, leadership, and training of United States armed forces personnel of 
131.19 	all generations, it is the policy of the state of Minnesota to promulgate, implement, and 
131.20 	maintain laws, policies, rules, and procedures, insofar as is practicable and beneficial 
131.21 	to the people of this state and within available resources as may exist at any time, that 
131.22 	encourage, recognize, and reward honorable military service to this state and nation, 
131.23 	whether in regular active service or in the National Guard or other reserve component 
131.24 	service, during both peacetime and war. This includes, but is not limited to, policies 
131.25 	supportive of the physical and mental health needs of returning veterans.

131.26 	Sec. 7. Minnesota Statutes 2004, section 190.055, is amended to read:
131.27 	190.055 PROTECTIONS.
131.28 	(a) A person called or ordered to active service, as defined in section  190.05, 
131.29 	subdivision 5a or 5b, has all the protections afforded to persons in the military service of 
131.30 	the United States under:
131.31 	(1) the Soldiers and Sailors Civil Relief Act of 1940 Service Members Civil Relief 
131.32 	Act, United States Code, Appendix 50, sections 501 to 548, and 560 to 591, as amended.
131.33 	at any time; and
132.1 	(2) the Uniformed Services Employment and Reemployment Rights Act, United 
132.2 	States Code, title 38, sections 4301 to 4333, as amended at any time.
132.3 	(b) The acts referenced in paragraph (a), clauses (1) and (2), may be cited as the 
132.4 	"SCRA" and "USERRA," respectively.

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

132.6 	Sec. 8. Minnesota Statutes 2005 Supplement, section 192.502, is amended by adding a 
132.7 	subdivision to read:
132.8 		Subd. 3.Unpaid leave to attend military ceremonies. Employees are entitled 
132.9 	to unpaid leave, as required by section 181.948, to attend the send-off or homecoming 
132.10 	ceremony of an immediate family member who, as a member of the United States armed 
132.11 	forces, has been mobilized for active military service in support of a war or other national 
132.12 	emergency.

132.13 	Sec. 9. Minnesota Statutes 2005 Supplement, section 192.502, is amended by adding a 
132.14 	subdivision to read:
132.15 		Subd. 4. Unpaid leave for families of injured or deceased military members. 
 132.16 	Employees are entitled to unpaid leave, as required by section 181.947, when an 
132.17 	immediate family member, as a member of the United States armed forces, has been 
132.18 	injured or killed while engaged in active service.

132.19 	EFFECTIVE DATE. This section is effective the day following final enactment 
132.20 	and applies to the immediate family members of military personnel injured or killed on or 
132.21 	after that date, as well as to the immediate family members of military personnel who, on 
132.22 	the effective date, are recovering from injuries that occurred prior to that date.

132.23 	Sec. 10. [197.585] HIGHER EDUCATION VETERANS ASSISTANCE OFFICES.
132.24 	(a) If there is a need as determined by the commissioner of veterans affairs, each 
132.25 	campus of the University of Minnesota and each institution within the Minnesota State 
132.26 	Colleges and Universities system shall provide adequate space for a veterans assistance 
132.27 	office to be administered by the Department of Veterans Affairs, and each private college 
132.28 	and university in Minnesota is requested to provide adequate space for a veterans 
132.29 	assistance  office to be administered by the Department of Veterans Affairs. The veterans 
132.30 	assistance office must provide information and assistance to veterans who are students 
132.31 	or family members of students at the school so that they know what state, federal, local, 
132.32 	and private  resources are available to them.
133.1 	(b)  By January 15 each year the commissioner shall report to the chairs of the 
133.2 	house and senate committees having purview over veterans affairs policy and finance, 
133.3 	regarding the implementation and effectiveness of this section. The report must address 
133.4 	all relevant issues raised in writing to the commissioner by those chairs by August 1 of 
133.5 	the preceding year.
133.6 	(c)  This section expires at the end of the  first fiscal year in which the number of 
133.7 	veterans enrolled in Minnesota public institutions  of higher education is fewer than 4,000, 
133.8 	but no later than June 30, 2012.

133.9 	Sec. 11. [197.775] HIGHER EDUCATION FAIRNESS.
133.10 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
133.11 	section.
133.12 	(b) "Commissioner" means the commissioner of veterans affairs.
133.13 	(c) "State college or university" means a unit of the University of Minnesota or 
133.14 	Minnesota State Colleges and Universities.
133.15 		Subd. 2.Recognition of courses. (a) Minnesota State Colleges and Universities 
133.16 	must recognize courses and award educational credits for courses that were part of a 
133.17 	veteran's military training or service if the courses meet the standards of the American 
133.18 	Council on Education or equivalent standards for awarding academic credits.
133.19 	(b) The University of Minnesota and private colleges and universities in Minnesota 
133.20 	are encouraged to recognize courses and award educational credits for courses that were 
133.21 	part of a veteran's military training or service if the courses meet the standards of the 
133.22 	American Council on Education or equivalent standards for awarding academic credits.
133.23 		Subd. 3.Tuition status. A state college or university must treat a veteran as a 
133.24 	Minnesota resident for purposes of determining the veteran's undergraduate tuition rate. A 
133.25 	state college or university must treat a veteran as a Minnesota resident for purposes of 
133.26 	determining the veteran's graduate school tuition rate if the veteran was a Minnesota 
133.27 	resident on entering military service and starts attending the state college or university 
133.28 	graduate program within two years of completing military service.
133.29 		Subd. 4.Delayed payment of tuition. A state college or university may not assess 
133.30 	late fees or other late charges for veterans who are eligible to receive federal educational 
133.31 	assistance and who have applied for that assistance but not yet received it, nor may they 
133.32 	prevent these students from registering for a subsequent term because of outstanding 
133.33 	tuition charges that arise from delayed federal payments. The state college or university 
133.34 	may request without delay the amount of tuition above expected federal educational 
134.1 	assistance and may require payment of the full amount of tuition owed by the veteran 
134.2 	within 30 days of receipt of the expected federal educational assistance.

134.3 	Sec. 12. Minnesota Statutes 2004, section 326.56, is amended to read:
134.4 	326.56 LICENSES, CERTIFICATES OF REGISTRATION; RENEWALS.
134.5 		Subdivision 1.Definitions. For the purposes of this section the terms defined in 
134.6 	this subdivision shall have the meanings ascribed to them.
134.7 	(1) "Active military service" has the meaning given in section 190.05, subdivision 5.
134.8 	(2) "Employment essential to the prosecution of any a war and or to the national 
134.9 	defense" means employment by the federal government of the United States of America, 
134.10 	or any of its agencies, or any by a federal government contractor under the United States of 
134.11 	America, or subcontractor under such contractor, in work connected with the prosecution 
134.12 	of a war or for the defense of the United States of America and others of the United 
134.13 	Nations during war or its allies.
134.14 	(2) (3) "Outside of the United States" means outside of the territorial limits of the 50 
134.15 	states of the United States and the District of Columbia.
134.16 		Subd. 2.Trade licenses or registrations, renewals; exemption of members of for 
134.17 	armed forces and certain essential employees. Notwithstanding any other provision of 
134.18 	statutes, any person required by law to be licensed or registered by the state of Minnesota 
134.19 	in order to carry on or practice a trade, employment, occupation or profession in the within 
134.20 	this  state of Minnesota who is also required by law to renew the license or certificate of 
134.21 	registration at stated intervals and to pay a fee for such renewal on or before a specified 
134.22 	date, or be subject to revocation of the license or certificate or other penalties, and who 
134.23 	has since the enactment by the Congress of the United States of the Selective Service and 
134.24 	Training Act of 1940 entered, or shall hereafter enter, the armed forces of the United States 
134.25 	of America been ordered into active military service, or who has since the enactment of 
134.26 	said act been engaged, or shall hereafter be engaged, in employment, outside of the United 
134.27 	States, essential to the prosecution of any a war or to the national defense, whose license 
134.28 	or certificate of registration was effective at the time of the person's entry into the armed 
134.29 	forces active military service or engagement in the employment aforesaid, is hereby 
134.30 	exempted from the payment of all renewal fees and from the filing of any application for 
134.31 	renewal, which but for this section would have been required as a condition of the renewal 
134.32 	of the license or certificate, during the time the person has been in such armed forces 
134.33 	 active military service or in such that employment, and from any penalties for nonpayment 
134.34 	or late payment, and is hereby exempted from further payment of such renewal fees and 
134.35 	from the making of any application for renewal during the period the person shall remain 
135.1 	in such armed forces  active military service or is engaged in such the employment, and for 
135.2 	a further period of six months from discharge from the armed forces, if a member thereof, 
135.3 	or from the date of return within the boundaries of the United States if engaged in the 
135.4 	employment hereinbefore referred to thereafter. The license or certificate in the meantime 
135.5 	shall remain in full force and effect, and if it has been canceled or revoked since the date 
135.6 	of the enactment of the Selective Service and Training Act of 1940 solely on the ground
135.7 	basis of nonpayment of renewal fees, or failure to apply for a renewal, it shall be reinstated 
135.8 	upon the application of the licensee or registrant or any one on the licensee's or registrant's
135.9 	by anyone on the person's  behalf without the payment of any penalties or costs. Any such 
135.10 	person may within six months from the date of release from the armed forces of the United 
135.11 	States, if the person has been a member of such armed forces active military service, or 
135.12 	from the date of return within the boundaries of the United States if the person has been 
135.13 	engaged in the essential employment hereinbefore referred to, make application for a 
135.14 	renewal of the license or certificate without penalty and in the same manner as if the person 
135.15 	had made application therefor at the time or time specified by existing laws, irrespective 
135.16 	of whether the license or certificate has expired or is due to expire within that time period.

135.17 	Sec. 13. Minnesota Statutes 2004, section 609.67, subdivision 3, is amended to read:
135.18 		Subd. 3.Uses permitted. The following persons may own or possess a machine 
135.19 	gun or short-barreled shotgun provided the provisions of subdivision 4 are complied with:
135.20 	(1) law enforcement officers for use in the course of their duties;
135.21 	(2) chief executive officers of correctional facilities and other personnel thereof 
135.22 	authorized by them and persons in charge of other institutions for the retention of persons 
135.23 	convicted or accused of crime, for use in the course of their duties;
135.24 	(3) persons possessing machine guns or short-barreled shotguns which, although 
135.25 	designed as weapons, have been determined by the superintendent of the Bureau 
135.26 	of Criminal Apprehension or the superintendent's delegate by reason of the date of 
135.27 	manufacture, value, design or other characteristics to be primarily collector's items, 
135.28 	relics, museum pieces or objects of curiosity, ornaments or keepsakes, and are not likely 
135.29 	to be used as weapons;
135.30 	(4) manufacturers of ammunition who possess and use machine guns for the sole 
135.31 	purpose of testing ammunition manufactured for sale to federal and state agencies or 
135.32 	political subdivisions; and
135.33 	(5) dealers and manufacturers who are federally licensed to buy and sell, or 
135.34 	manufacture machine guns or short-barreled shotguns and who either use the machine 
135.35 	guns or short-barreled shotguns in peace officer training under courses approved by the 
136.1 	Board of Peace Officer Standards and Training, or are engaged in the sale of machine guns 
136.2 	or short-barreled shotguns to federal and state agencies or political subdivisions.; and
136.3 	(6) persons employed by the Minnesota National Guard as security guards, for use in 
136.4 	accordance with applicable federal military regulations.

136.5 	Sec. 14. Minnesota Statutes 2004, section 609.67, subdivision 5, is amended to read:
136.6 		Subd. 5.Exceptions. This section does not apply to members of the armed services 
136.7 	of either the United States or the state of Minnesota for use in the course of their duties
136.8 	or to security guards employed by the Minnesota National Guard for use in accordance 
136.9 	with applicable federal military regulations.

136.10 	Sec. 15. Minnesota Statutes 2004, section 626.88, subdivision 1, is amended to read:
136.11 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
136.12 	have the meanings given them.
136.13 	(b) "Peace officer" means an employee of a political subdivision or state law 
136.14 	enforcement agency who is licensed pursuant to sections  626.84 to  626.863 charged 
136.15 	with the prevention and detection of crime and the enforcement of the general criminal 
136.16 	laws of the state and who has full power of arrest, and shall also include Minnesota state 
136.17 	troopers, state conservation officers, park police, constables, and University of Minnesota 
136.18 	police officers. 
136.19 	(c) "Security guard" means any person who is paid a fee, wage or salary to perform 
136.20 	one or more of the following functions:
136.21 	(1) prevention or detection of intrusion, unauthorized entry or activity, vandalism 
136.22 	or trespass on private property;
136.23 	(2) prevention or detection of theft, loss, embezzlement, misappropriation, or 
136.24 	concealment of merchandise, money, bonds, stocks, notes, or other valuable documents 
136.25 	or papers;
136.26 	(3) control, regulation, or direction of the flow or movements of the public, whether 
136.27 	by vehicle or otherwise, to assure protection of private property;
136.28 	(4) protection of individuals from bodily harm; or
136.29 	(5) prevention or detection of intrusion, unauthorized entry or activity, vandalism, 
136.30 	or trespass on Minnesota National Guard facilities, including, but not limited to, Camp 
136.31 	Ripley and Air National Guard air bases; or
136.32 	(5) (6) enforcement of policies and rules of the security guard's employer related 
136.33 	to crime reduction insofar as such enforcement falls within the scope of security guard's 
136.34 	duties.
137.1 	The term "security guard" does not include: (i) auditors, accountants, and accounting 
137.2 	personnel performing audits or accounting functions; (ii) employees of a firm licensed 
137.3 	pursuant to section  326.3381 whose duties are primarily administrative or clerical in 
137.4 	nature; (iii) unarmed security personnel; (iv) personnel temporarily employed pursuant 
137.5 	to statute or ordinance by political subdivisions to provide protective services at social 
137.6 	functions; (v) employees of air or rail carriers. 

137.7 	Sec. 16. MEMORIAL PLAQUES.
 137.8 		Subdivision 1. Memorial plaque honoring military war dogs and their handlers. 
 137.9 	A memorial plaque may be placed in the court of honor on the Capitol grounds to 
137.10 	recognize the valiant service to our nation by the thousands of brave military war dogs and 
137.11 	their handlers who served honorably as members of the United States armed forces during 
137.12 	all of our nation's wars and during peacetime. The plaque must be furnished by a person 
137.13 	or organization other than the Department of Veterans Affairs and must be approved by the 
137.14 	commissioner of veterans affairs and the Capitol Area Architectural and Planning Board.
137.15 		Subd. 2. Memorial plaque honoring Medal of Honor recipients.  A memorial 
137.16 	plaque may be placed in the Court of Honor on the Capitol grounds to recognize those 
137.17 	Minnesotans that have received the highest award for valor in action against an enemy 
137.18 	force which can be bestowed upon an individual serving in the armed services of the 
137.19 	United States. The plaque must be furnished by a person or organization other than the 
137.20 	Department of Veterans Affairs and must be approved by the commissioner of veterans 
137.21 	affairs and the Capitol Area Architectural and Planning Board.

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

137.23 	Sec. 17. REVISOR'S INSTRUCTION.
 137.24 	The revisor of statutes shall insert a first grade header after Minnesota Statutes, 
137.25 	section 181.946, that reads "LEAVE FOR FAMILIES OF MOBILIZED MILITARY 
137.26 	MEMBERS."

137.27 	ARTICLE 6
137.28 	MUNICIPAL BOUNDARY ADJUSTMENT

137.29 	Section 1. MUNICIPAL BOUNDARY ADJUSTMENT ADVISORY TASK 
137.30 	FORCE ESTABLISHED.
 137.31 		Subdivision 1.Membership. An advisory task force on municipal boundary 
137.32 	adjustments is established to study and make recommendations on what, if any, changes 
138.1 	should be made to the law governing municipal boundary adjustments. The task force 
138.2 	shall develop recommendations regarding best practices annexation training for city and 
138.3 	township officials to better communicate and jointly plan potential annexations. The task 
138.4 	force is comprised of the following members:
138.5 	(1) two state senators, one from the majority caucus and one from the minority 
138.6 	caucus, appointed by at least two-thirds vote of the senate committee with jurisdiction 
138.7 	over local government issues;
138.8 	(2) two state representatives, one from the majority caucus and one from the 
138.9 	minority caucus, appointed by at least two-thirds vote of the house of representatives 
138.10 	committee with jurisdiction over local government issues;
138.11 	(3) three representatives of city interests, appointed by the League of Minnesota 
138.12 	Cities in consultation with the Association of Metropolitan Municipalities, the Coalition 
138.13 	of Greater Minnesota Cities, and the Minnesota Association of Small Cities;
138.14 	(4) three representatives of township interests, appointed by the Minnesota 
138.15 	Association of Townships; and
138.16 	(5) one person appointed jointly by the senate majority leader and the speaker of the 
138.17 	house of representatives to serve as chair of the task force, selected based on knowledge 
138.18 	and experience in municipal boundary adjustment issues and who could serve without bias 
138.19 	towards either side of the issue of annexation.
138.20 	All appointing authorities shall provide for balance of geographic areas of the state and 
138.21 	city and town interests.
138.22 		Subd. 2.Report by January 2007. The task force shall report its recommendations 
138.23 	to the chairs and members of the house of representatives and senate committees with 
138.24 	jurisdiction over municipal boundary adjustments by January 1, 2007. The task force shall 
138.25 	also provide a copy of its recommendations to the Legislative Reference Library.
138.26 		Subd. 3.Funds available.  Any funds remaining in the committee budgets for the 
138.27 	house local government committee or the senate state and local government practices 
138.28 	committee as of the 2006 adjournment of the legislature will be available to pay for the 
138.29 	administrative expenses of the task force, including per diems and expenses of members 
138.30 	and the services of a facilitator from the management analysis division of the Department 
138.31 	of Administration.

138.32 	Sec. 2. Minnesota Statutes 2004, section 414.01, subdivision 1a, is amended to read:
138.33 		Subd. 1a.Legislative findings. The legislature finds that:
138.34 	(1) sound urban development and preservation of agricultural land and open spaces 
138.35 	through land use planning is essential to the continued economic growth of this state;
139.1 	(2) municipal government most efficiently provides governmental services in areas 
139.2 	intensively developed for residential, commercial, industrial, and governmental purposes; 
139.3 	and township government most efficiently provides governmental services in areas used or 
139.4 	developed for agricultural, open space, and rural residential purposes;
139.5 	(3) the public interest requires that municipalities be formed when there exists or will 
139.6 	likely exist the necessary resources to provide for their economical and efficient operation;
139.7 	(4) annexation to existing municipalities of unincorporated areas unable to supply 
139.8 	municipal services should be facilitated; and
139.9 	(5) the consolidation of municipalities should be encouraged. long-range joint 
139.10 	powers planning or other cooperative efforts among counties, cities, and towns should 
139.11 	be encouraged.

139.12 	Sec. 3. Minnesota Statutes 2004, section 414.02, is amended by adding a subdivision 
139.13 	to read:
139.14 		Subd. 1a.Notice of intent to incorporate. At least 30 days before submitting to the 
139.15 	director the petition or resolution under this section, the township must serve the clerk of 
139.16 	each municipality and each township that is contiguous to the township by certified mail a 
139.17 	notice of the township's intent to incorporate.

139.18 	Sec. 4. Minnesota Statutes 2004, section 414.031, is amended by adding a subdivision 
139.19 	to read:
139.20 		Subd. 1a.Notice of intent to annex. At least 30 days before submitting to the 
139.21 	director a petition or resolution under this section, the municipality must serve the 
139.22 	township clerk of the affected township by certified mail a notice of the municipality's 
139.23 	intent to annex property within the township. The notice must clearly identify the 
139.24 	boundaries of the area proposed to be annexed.

139.25 	Sec. 5. Minnesota Statutes 2004, section 414.031, subdivision 4, is amended to read:
139.26 		Subd. 4.Relevant factors, order. (a) In arriving at a decision, the director shall 
139.27 	consider the following sources and factors:
139.28 	(1) recordings and public documents from joint informational meetings under 
139.29 	section 414.0333 relevant to other factors listed in this subdivision;
139.30 	(1) (2) present population and number of households, past population and projected 
139.31 	population growth of the annexing municipality and subject area and adjacent units of 
139.32 	local government;
140.1 	(2) (3) quantity of land within the subject area and adjacent units of local government; 
140.2 	and natural terrain including recognizable physical features, general topography, major 
140.3 	watersheds, soil conditions and such natural features as rivers, lakes and major bluffs;
140.4 	(3) (4) degree of contiguity of the boundaries between the annexing municipality 
140.5 	and the subject area;
140.6 	(4) (5) present pattern of physical development, planning, and intended land 
140.7 	uses in the subject area and the annexing municipality including residential, industrial, 
140.8 	commercial, agricultural and institutional land uses and the impact of the proposed action 
140.9 	on those land uses;
140.10 	(5) (6) the present transportation network and potential transportation issues, 
140.11 	including proposed highway development;
140.12 	(6) (7) land use controls and planning presently being utilized in the annexing 
140.13 	municipality and the subject area, including comprehensive plans for development in 
140.14 	the area and plans and policies of the Metropolitan Council, and whether there are 
140.15 	inconsistencies between proposed development and existing land use controls and the 
140.16 	reasons therefore;
140.17 	(7) (8) existing levels of governmental services being provided in the annexing 
140.18 	municipality and the subject area, including water and sewer service, fire rating and 
140.19 	protection, law enforcement, street improvements and maintenance, administrative 
140.20 	services, and recreational facilities and the impact of the proposed action on the delivery 
140.21 	of said services;
140.22 	(9) the implementation of previous annexation agreements and orders;
140.23 	(8) (10) existing or potential environmental problems and whether the proposed 
140.24 	action is likely to improve or resolve these problems;
140.25 	(9) (11) plans and programs by the annexing municipality for providing needed and 
140.26 	enhanced governmental services to the subject area in a cost-effective and feasible manner 
140.27 	within a reasonable time from the date of the annexation;
140.28 	(10) (12) an analysis of the fiscal impact on the annexing municipality, the subject 
140.29 	area, and adjacent units of local government, including net tax capacity and the present 
140.30 	bonded indebtedness, and the local tax rates of the county, school district, and township;
140.31 	(11) (13) relationship and effect of the proposed action on affected and adjacent 
140.32 	school districts and communities;
140.33 	(12) (14) adequacy of town government to deliver services to the subject area;
140.34 	(13) (15) analysis of whether necessary governmental services can best be provided 
140.35 	through the proposed action or another type of boundary adjustment; and
141.1 	(14) (16) if only a part of a township is annexed, the ability of the remainder of the 
141.2 	township to continue or the feasibility of it being incorporated separately or being annexed 
141.3 	to another municipality.
141.4 	(b) Based upon the factors, the director may order the annexation on finding:
141.5 	(1) that the subject area is now, or is about to become, urban or suburban in character;
141.6 	(2) that municipal government in the area proposed for annexation is required to 
141.7 	protect the public health, safety, and welfare; or
141.8 	(3) that the annexation would be in the best interest of the subject area.
141.9 	(c) If only a part of a township is to be annexed, the director shall consider whether 
141.10 	the remainder of the township can continue to carry on the functions of government 
141.11 	without undue hardship.
141.12 	(d) The director shall deny the annexation on finding that the increase in revenues for 
141.13 	the annexing municipality bears no reasonable relation to the monetary value of benefits 
141.14 	conferred upon the annexed area.
141.15 	(e) The director may deny the annexation on finding:
141.16 	(1) that annexation of all or a part of the property to an adjacent municipality would 
141.17 	better serve the interests of the residents of the property; or
141.18 	(2) that the remainder of the township would suffer undue hardship.
141.19 	(f) The director may alter the boundaries of the area to be annexed by increasing or 
141.20 	decreasing the area so as to include only that property which is now or is about to become 
141.21 	urban or suburban in character or to add property of such character abutting the area 
141.22 	proposed for annexation in order to preserve or improve the symmetry of the area, or to 
141.23 	exclude property that may better be served by another unit of government.
141.24 	(g) The director may also alter the boundaries of the proposed annexation so as to 
141.25 	follow visible, clearly recognizable physical features.
141.26 	(h) If the director determines that part of the area would be better served by another 
141.27 	municipality or township, the director may initiate and approve annexation by conducting 
141.28 	further hearings and issuing orders pursuant to subdivisions 3 and 4.
141.29 	(i) In all cases, the director shall set forth the factors which are the basis for the 
141.30 	decision.

141.31 	Sec. 6. Minnesota Statutes 2004, section 414.0325, subdivision 1, is amended to read:
141.32 		Subdivision 1.Initiating the proceeding. (a) One or more townships and one or 
141.33 	more municipalities, by joint resolution, may designate an unincorporated area as in 
141.34 	need of orderly annexation. One or more municipalities, by joint resolution with the 
142.1 	county, may designate an unincorporated area in which there is no organized township 
142.2 	government as in need of orderly annexation.
142.3 	(b) The joint resolution will confer jurisdiction on the director over annexations in 
142.4 	the designated area and over the various provisions in said agreement by submission of 
142.5 	said joint resolution to the director.
142.6 	(c) The resolution shall include a description of the designated area and the reasons 
142.7 	for designation.
142.8 	(d) Thereafter, an annexation of any part of the designated area may be initiated by:
142.9 	(1) submitting to the director a resolution of any signatory to the joint resolution; or
142.10 	(2) the director.
142.11 	(e) Whenever a state agency, other than the pollution control agency, orders a 
142.12 	municipality to extend a municipal service to an area, the order confers jurisdiction on the 
142.13 	director to consider designation of the area for orderly annexation.
142.14 	(f) If a joint resolution designates an area as in need of orderly annexation and states 
142.15 	that no alteration of its stated boundaries is appropriate, the director may review and 
142.16 	comment, but may not alter the boundaries.
142.17 	(g) If a joint resolution designates an area as in need of orderly annexation, provides 
142.18 	for the conditions for its annexation, and states that no consideration by the director is 
142.19 	necessary, the director may review and comment, but shall, within 30 days, order the 
142.20 	annexation in accordance with the terms of the resolution.

142.21 	Sec. 7. Minnesota Statutes 2004, section 414.0325, is amended by adding a subdivision 
142.22 	to read:
142.23 		Subd. 1b.Notice of intent to designate an area. At least ten days before the 
142.24 	municipality or township adopts an orderly annexation agreement, a notice of the intent to 
142.25 	include property in an orderly annexation area must be published in a newspaper of general 
142.26 	circulation in both the township and municipality. The notice must clearly identify the 
142.27 	boundaries of the area proposed to be included in the orderly annexation agreement and the 
142.28 	date, time, and place of the public informational meeting to be held as provided in section 
142.29 	414.0333. The cost of providing notice must be equally divided between the municipality 
142.30 	and the township, unless otherwise agreed upon by the municipality and the township.

142.31 	Sec. 8. Minnesota Statutes 2004, section 414.033, subdivision 2, is amended to read:
142.32 		Subd. 2.Conditions. A municipal council may by ordinance declare land annexed 
142.33 	to the municipality and any such land is deemed to be urban or suburban in character 
142.34 	or about to become so if:
143.1 	(1) the land is owned by the municipality;
143.2 	(2) the land is completely surrounded by land within the municipal limits;
143.3 	(3) the land abuts the municipality and the area to be annexed is 60 120 acres or less, 
143.4 	and the area to be annexed is not presently served by public sewer wastewater facilities 
143.5 	or public sewer wastewater facilities are not otherwise available, and the municipality 
143.6 	receives a petition for annexation from all the property owners of the land. Except as 
143.7 	provided for by an orderly annexation agreement, the director must not accept a petition 
143.8 	from a property owner for more than one annexation per year of property contiguous to 
143.9 	the parcel previously annexed under this clause; or
143.10 	(4) the land has been approved after August 1, 1995, by a preliminary plat or final 
143.11 	plat for subdivision to provide residential lots that average 21,780 square feet or less in 
143.12 	area and the land is located within two miles of the municipal limits.

143.13 	EFFECTIVE DATE. This section is effective until July 1, 2007.

143.14 	Sec. 9. Minnesota Statutes 2004, section 414.033, subdivision 12, is amended to read:
143.15 		Subd. 12.Property taxes. When a municipality annexes land under subdivision 2, 
143.16 	clause (2), (3), or (4), property taxes payable on the annexed land shall continue to be paid 
143.17 	to the affected town or towns for the year in which the annexation becomes effective. If 
143.18 	the annexation becomes effective on or before August 1 of a levy year, the municipality 
143.19 	may levy on the annexed area beginning with that same levy year. If the annexation 
143.20 	becomes effective after August 1 of a levy year, the town may continue to levy on the 
143.21 	annexed area for that levy year, and the municipality may not levy on the annexed area 
143.22 	until the following levy year. In the first year following the year when the municipality 
143.23 	could first levy on the annexed area under this subdivision, and thereafter, property taxes 
143.24 	on the annexed land shall be paid to the municipality. In the first year following the year 
143.25 	the municipality could first levy on the annexed area, the municipality shall make a cash 
143.26 	payment to the affected town or towns in an amount equal to 90 percent of the property 
143.27 	taxes distributed to the town in regard to the annexed area in the last year the property 
143.28 	taxes from the annexed area were payable to the town; in the second year, an amount 
143.29 	equal to 70 percent; in the third year, an amount equal to 50 percent; in the fourth year, 
143.30 	an amount equal to 30 percent; and in the fifth year, an amount equal to ten percent. The 
143.31 	municipality and the affected township may agree to a different payment.

143.32 	Sec. 10. [414.0333] JOINT INFORMATIONAL MEETING.
143.33 	There must be a joint informational meeting of the municipal council of the annexing 
143.34 	municipality and the town board of supervisors of the township containing the land 
144.1 	proposed to be annexed or included in annexation proceedings under section  414.031. For 
144.2 	an annexation under section 414.031, the joint information meeting must be held after the 
144.3 	final mediation meeting or the final meeting held pursuant to section 414.01, subdivision 
144.4 	16, if any, and before the hearing on the matter is held. If no mediation meetings are held, 
144.5 	the joint informational meeting must be held after the initiating documents have been filed 
144.6 	and before the hearing on the matter. The time, date, and place of the public informational 
144.7 	meeting must be determined jointly by the chair of the town board of supervisors and the 
144.8 	mayor of the annexing municipality. The chair of the town board of supervisors and 
144.9 	the mayor must serve as the cochairs for the informational meeting. Notice of the time, 
144.10 	date, place, and purpose of the informational meeting must be posted by the town clerk 
144.11 	in the township's designated place for posting notices, and by the municipal clerk in the 
144.12 	municipality's designated place for posting notices. A joint notice shall be published 
144.13 	in a newspaper of general circulation within both the municipality and the township. 
144.14 	All notice required by this section must be provided at least ten days before the date 
144.15 	for the public informational meeting. At the public informational meeting, all persons 
144.16 	appearing must have an opportunity to be heard. The municipal council, the town board of 
144.17 	supervisors, and any resident or affected property owner may be represented by counsel 
144.18 	and introduce evidence including, but not limited to, expert testimony into the record of the 
144.19 	informational meeting. The clerk of the township must record minutes of the proceedings 
144.20 	of the informational meeting and the municipal clerk must make an audio recording of 
144.21 	the informational meeting. The township must provide the director and the municipality 
144.22 	with a copy of the printed minutes and the municipality must provide the director and the 
144.23 	township with a copy of the audio recording. The record of the informational meeting for 
144.24 	a proceeding under section 414.031 is admissible in any proceeding under this chapter and 
144.25 	shall be taken into consideration by the director or the director's designee.

144.26 	Sec. 11. Minnesota Statutes 2004, section 414.036, is amended to read:
144.27 	414.036 CITY REIMBURSEMENT TO TOWN TO ANNEX TAXABLE 
144.28 	PROPERTY.
144.29 	Unless otherwise agreed to by the annexing municipality and the affected town, when 
144.30 	an order or other approval under section  414.0325 this chapter annexes part of a town to a 
144.31 	municipality, the orderly annexation agreement between the town and municipality may
144.32 	order or other approval must provide a reimbursement from the municipality to the town 
144.33 	for all or part of the taxable property annexed as part of the order. The reimbursement shall 
144.34 	be completed in substantially equal payments over not less than two nor more than six
144.35 	eight years from the time of annexation. The municipality must reimburse the township 
145.1 	for all special assessments assigned by the township to the annexed property, and any 
145.2 	portion of debt incurred by the town prior to the annexation and attributable to the property 
145.3 	to be annexed but for which no special assessments are outstanding, in substantially equal 
145.4 	payments over a period of not less than two or no more than eight years.

145.5 	Sec. 12. Minnesota Statutes 2004, section 414.061, subdivision 5, is amended to read:
145.6 		Subd. 5.Property owners may initiate. Property owners may initiate proceedings 
145.7 	for the concurrent detachment of their property from one municipality and its annexation 
145.8 	to an adjacent municipality by a petition signed by all of them that they submit to the 
145.9 	director accompanied by a resolution of the city council of at least one each of the affected 
145.10 	municipalities. The director shall conduct hearings and issue an order pursuant to section  
145.11 	414.09. In arriving at a decision, the director shall consider the factors in section  414.02, 
145.12 	subdivision 3. The director shall order the proposed action on finding that it will be for the 
145.13 	best interests of the municipalities and the property owner. In all cases, the director shall 
145.14 	set forth the factors which are the basis for the decision. 

145.15 	Sec. 13. EFFECTIVE DATE.
 145.16 	Section 8 is effective until July 1, 2007.