1.1 	A bill for an act
1.2 	relating to state government; modifying state government administration and 
1.3 	operations; creating the Center for Health Care Purchasing Improvement; 
1.4 	providing for certain employment leave; providing for higher education fairness; 
1.5 	providing for a post employment benefit fund for the city of Duluth; creating a 
1.6 	task force; requiring reports; amending Minnesota Statutes 2004, sections 3.9225, 
1.7 	subdivision 5; 16A.11, subdivision 3; 16A.86, by adding a subdivision; 16C.02, 
1.8 	subdivisions 4, 12, 14, by adding subdivisions; 16C.03, subdivisions 3, 4, 8, 13, 
1.9 	16; 16C.04, subdivisions 1, 2; 16C.05, subdivisions 1, 2, 5; 16C.08, subdivision 
1.10 	2, by adding a subdivision; 43A.08, subdivision 1a; 43A.17, subdivision 4; 
1.11 	43A.316, subdivision 3; 145.925, by adding a subdivision; 181.9413; 270B.14, 
1.12 	by adding a subdivision; Minnesota Statutes 2005 Supplement, sections 10.60, 
1.13 	subdivision 3; 16C.09; 16C.10, subdivision 7; 43A.346, subdivision 1; 192.502, 
1.14 	by adding subdivisions; proposing coding for new law in Minnesota Statutes, 
1.15 	chapters 10; 16A; 16B; 16C; 16E; 43A; 181; 197; 353; repealing Minnesota 
1.16 	Statutes 2004, sections 116R.02, subdivision 7; 116R.16.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	Section. 1. Minnesota Statutes 2004, section 3.9225, subdivision 5, is amended to read:
1.19 		Subd. 5.Powers. The council may contract in its own name, but no money shall be 
1.20 	accepted or received as a loan nor indebtedness incurred except as otherwise provided 
1.21 	by law. Contracts shall be approved by a majority of the members of the council and 
1.22 	executed by the chair and the executive director. The council may apply for, receive, and 
1.23 	expend in its own name grants and gifts of money consistent with the power and duties 
1.24 	specified in subdivisions 1 to 7.
1.25 	The council shall appoint an executive director who is experienced in administrative 
1.26 	activities and familiar with the problems and needs of Black people. The council may 
1.27 	delegate to the executive director powers and duties under subdivisions 1 to 7 which do 
1.28 	not require council approval. The executive director serves in the unclassified service and 
1.29 	may be removed at any time by the council. The executive director shall recommend 
2.1 	to the council, and the council may appoint the appropriate staff necessary to carry 
2.2 	out its duties. Staff members serve in the unclassified service. The commissioner of 
2.3 	administration shall provide the council with perform necessary administrative services
2.4 	for the council, including, but not limited to, payroll, purchasing, budgeting, and computer 
2.5 	support functions.

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

2.7 	Sec. 2. [10.49] EMPLOYEE RECOGNITION; GIFT CERTIFICATES.
2.8 	A state employer that has an employee recognition program that awards gifts to its 
2.9 	employees based on years of service must allow the employees the option of choosing 
2.10 	a gift certificate of equivalent value from the Minnesota Historical Society for use in 
2.11 	a historical society store or the online store. For the purposes of this section, "state 
2.12 	employer" means any state department, office, board, commission, authority, legislative 
2.13 	office, judicial office, and the Metropolitan Council.

2.14 	Sec. 3. Minnesota Statutes 2005 Supplement, section 10.60, subdivision 3, is amended 
2.15 	to read:
2.16 		Subd. 3.Prohibitions. (a) A Web site or publication must not include pictures 
2.17 	or other materials that tend to attribute the Web site or publication to an individual or 
2.18 	group of individuals instead of to a public office, state agency, or political subdivision. 
2.19 	A publication must not include the words "with the compliments of" or contain letters 
2.20 	of personal greeting that promote an elected or appointed official of a state agency or 
2.21 	political subdivision.
2.22 	(b) A Web site may not contain a link to a Weblog or site maintained by a candidate, 
2.23 	a political committee, a political party or party unit, a principal campaign committee, or a 
2.24 	state committee. Terms used in this paragraph have the meanings given them in chapter 
2.25 	10A, except that "candidate" also includes a candidate for an elected office of a political 
2.26 	subdivision. This paragraph does not apply to a Web site maintained by a public library or 
2.27 	by a school district if the link is provided only for nonpartisan and educational purposes.

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

2.29 	Sec. 4. Minnesota Statutes 2004, section 16A.11, subdivision 3, is amended to read:
2.30 		Subd. 3.Part two: detailed budget. (a) Part two of the budget, the detailed budget 
2.31 	estimates both of expenditures and revenues, must contain any statements on the financial 
3.1 	plan which the governor believes desirable or which may be required by the legislature. 
3.2 	The detailed estimates shall include the governor's budget arranged in tabular form.
3.3 	(b) Tables listing expenditures for the next biennium must show the appropriation 
3.4 	base for each year. The appropriation base is the amount appropriated for the second 
3.5 	year of the current biennium. The tables must separately show any adjustments to the 
3.6 	base required by current law or policies of the commissioner of finance. For forecasted 
3.7 	programs, the tables must also show the amount of the forecast adjustments, based on the 
3.8 	most recent forecast prepared by the commissioner of finance under section  16A.103. For 
3.9 	all programs, the tables must show the amount of appropriation changes recommended 
3.10 	by the governor, after adjustments to the base and forecast adjustments, and the total 
3.11 	recommendation of the governor for that year. 
3.12 	(c) The detailed estimates must include a separate line listing the total cost of 
3.13 	professional and technical service contracts for the prior biennium and the projected 
3.14 	costs of those contracts for the current and upcoming biennium. They must also include 
3.15 	a summary of the personnel employed by the agency, reflected asthe number of full-time 
3.16 	equivalent positions in each agency program for the current biennium and the projected 
3.17 	number of full-time equivalent positions in each agency program for the upcoming 
3.18 	biennium.
3.19 	(d) The detailed estimates for internal service funds must include the number of 
3.20 	full-time equivalents by program; detail on any loans from the general fund, including 
3.21 	dollar amounts by program; proposed investments in technology or equipment of $100,000 
3.22 	or more; an explanation of any operating losses or increases in retained earnings; and a 
3.23 	history of the rates that have been charged, with an explanation of any rate changes and 
3.24 	the impact of the rate changes on affected agencies.

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

3.30 	Sec. 6. [16A.89] GRANTS MANAGEMENT.
3.31 		Subdivision 1.Grant. (a) A grant is a written instrument or electronic document 
3.32 	defining a legal relationship between a sponsor and a recipient when the principal purpose 
3.33 	of the relationship is to transfer cash or a thing of value to the recipient to support a public 
4.1 	purpose authorized by law instead of acquiring property or services, by professional or 
4.2 	technical contract, purchase, lease, or barter, for the direct benefit or use of the sponsor.
4.3 	(b) This section does not apply to capital project grants to political subdivisions, as 
4.4 	defined by section 16A.86.
4.5 		Subd. 2.Ethical practices and conflict of interest. An employee of the executive 
4.6 	branch involved directly or indirectly in a grant process, at any level, is subject to the 
4.7 	code of ethics in section 43A.38.
4.8 		Subd. 3.Conflict of interest policy development. (a) The commissioner must 
4.9 	develop a code of ethics and policies regarding conflicts of interest that are designed to 
4.10 	prevent conflicts of interest for employees involved in the award and administration of 
4.11 	grants. The policies must apply to employees who are directly or indirectly involved in 
4.12 	developing requests for proposals, evaluating proposals, awarding grants, drafting and 
4.13 	entering into grant agreements, amending or revising grants, evaluating performance 
4.14 	under these grants, and authorizing payments under the grant.
4.15 	(b) The policies must include:
4.16 	(1) a process for making employees aware of policy and laws relating to conflict of 
4.17 	interest, and training for employees on how to avoid and address potential conflicts;
4.18 	(2) a process under which an employee who has a conflict of interest or a potential 
4.19 	conflict of interest must disclose the matter; and 
4.20 	(3) a process under which work on the grant may be assigned to another employee if 
4.21 	possible.
4.22 		Subd. 4.Reporting of violations. A state employee who discovers evidence 
4.23 	of a violation of laws or rules governing grants is encouraged to report the violation 
4.24 	or suspected violation to the employee's supervisor, the commissioner, the director, 
4.25 	or the legislative auditor. The legislative auditor shall report to the Legislative Audit 
4.26 	Commission if there are multiple complaints about the same agency. The auditor's report 
4.27 	to the Legislative Audit Commission under this section must disclose only the number and 
4.28 	type of violations alleged. An employee making a good-faith report under this section is 
4.29 	covered by section 181.932.
4.30 		Subd. 5.Creation and validity of grant agreements. (a) A grant agreement is not 
4.31 	fully executed and the state is not bound by the grant unless:
4.32 	(1) the grant has been executed by the head of the agency or a delegate who is 
4.33 	a party to the grant; and 
4.34 	(2) the accounting system shows an encumbrance for the amount of the grant.
4.35 	(b) The combined grant agreement and amendments must not exceed five years 
4.36 	without specific, written approval by the commissioner according to established policy, 
5.1 	procedures, and standards, or unless the commissioner determines that a longer duration is 
5.2 	in the best interest of the state.
5.3 	(c) A fully executed copy of every grant agreement, amendments to the grant, and 
5.4 	other required records relating to the grant must be kept on file at the granting agency for a 
5.5 	period of time equal to that required for grantees in subdivision 7, paragraph (a).
5.6 	(d) The attorney general may periodically review and evaluate a sample of state 
5.7 	agency grants to ensure compliance with applicable laws.
5.8 		Subd. 6.Grant administration. A granting agency shall diligently administer 
5.9 	and monitor any grant it has entered into.
5.10 		Subd. 7.Audit. (a) A grant agreement made by an executive agency or any unit of 
5.11 	local government must include, expressed or implied, an audit clause that provides that 
5.12 	the books, records, documents, and accounting procedures and practices of the grantee or 
5.13 	other party that are relevant to the grant or transaction are subject to examination by the 
5.14 	granting agency and either the legislative auditor or the state auditor, as appropriate, for a 
5.15 	minimum of four years from the grant agrement end date or receipt and approval of all 
5.16 	final reports, whichever is later.
5.17 	(b) If the granting agency is a local unit of government, and the governing body of 
5.18 	the local unit of government requests that the state auditor examine the books, records, 
5.19 	documents, and accounting procedures and practices of the grantee or other party 
5.20 	according to this subdivision, the granting agency is liable for the cost of the examination. 
5.21 	If the granting agency is a local unit of government, and the grantee or other party requests 
5.22 	that the state auditor examine all books, records, documents, and accounting procedures 
5.23 	and practices related to the grant, the grantee or other party that requested the examination 
5.24 	is liable for the costs of the examination.
5.25 		Subd. 8.Authority of attorney general. The attorney general may pursue 
5.26 	remedies available by law to avoid the obligation of an agency to pay under a grant or to 
5.27 	recover payments made if activities under the grant are so unsatisfactory, incomplete, or 
5.28 	inconsistent that payment would involve unjust enrichment. The contrary opinion of the 
5.29 	granting agency does not affect the power of the attorney general under this subdivision.
5.30 		Subd. 9.Grants with Indian tribes and bands. Notwithstanding any other law, an 
5.31 	agency may not require an Indian tribe or band to deny its sovereignty as a requirement or 
5.32 	condition of a grant with an agency.

5.33 	Sec. 7. [16B.277] FORD BUILDING.
5.34 	The commissioner of administration must maintain and stabilize the Ford Building 
5.35 	at 117 University Avenue in St. Paul.

6.1 	Sec. 8. [16C.011] APPLICABILITY.
6.2 	Nothing in this chapter applies to grants under section 16A.86.

6.3 	Sec. 9. Minnesota Statutes 2004, section 16C.02, is amended by adding a subdivision 
6.4 	to read:
6.5 		Subd. 3a.Best and final offer. "Best and final offer" means an optional step in 
6.6 	the solicitation process in which responders are requested to improve their response by 
6.7 	methods including, but not limited to, the reduction of cost, clarification or modification of 
6.8 	the response, or the provision of additional information.

6.9 	Sec. 10. Minnesota Statutes 2004, section 16C.02, subdivision 4, is amended to read:
6.10 		Subd. 4.Best value. "Best value" describes a result intended in the acquisition of all 
6.11 	goods and services. Price must be one of the evaluation criteria when acquiring goods 
6.12 	and services. Other evaluation criteria may include, but are not limited to, environmental 
6.13 	considerations, quality, and vendor performance. In achieving "best value" strategic 
6.14 	sourcing tools, including, but not limited to, best and final offers, negotiations, contract 
6.15 	consolidation, product standardization, and mandatory-use enterprise contracts may be 
6.16 	used at the commissioner's discretion.

6.17 	Sec. 11. Minnesota Statutes 2004, section 16C.02, is amended by adding a subdivision 
6.18 	to read:
6.19 		Subd. 6a.Enterprise procurement. "Enterprise procurement" means the process 
6.20 	undertaken by the commissioner to leverage economies of scale of multiple end users to 
6.21 	achieve cost savings and other favorable terms in contracts for goods and services.

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

6.27 	Sec. 13. Minnesota Statutes 2004, section 16C.02, subdivision 14, is amended to read:
6.28 		Subd. 14.Response. "Response" means the offer received from a vendor in 
6.29 	response to a solicitation. A response includes submissions commonly referred to as 
6.30 	"offers," "best and final offers," "bids," "quotes," or "proposals."

7.1 	Sec. 14. Minnesota Statutes 2004, section 16C.02, is amended by adding a subdivision 
7.2 	to read:
7.3 		Subd. 20.Strategic sourcing. "Strategic sourcing" means methods used to analyze 
7.4 	and reduce spending on goods and services including, but not limited to, spending 
7.5 	analysis, product standardization, contract consolidation, multiple jurisdiction purchasing 
7.6 	alliances, reverse auctions, lifecycle costing, and other techniques.

7.7 	Sec. 15. Minnesota Statutes 2004, section 16C.03, subdivision 3, is amended to read:
7.8 		Subd. 3.Acquisition authority. The commissioner shall acquire all goods, services, 
7.9 	and utilities needed by agencies. The commissioner shall acquire goods, services, and 
7.10 	utilities by requests for bids, requests for proposals, reverse auctions as provided in 
7.11 	section  16C.10, subdivision 7, or other methods provided by law, unless a section of 
7.12 	law requires a particular method of acquisition to be used. The commissioner shall 
7.13 	make all decisions regarding acquisition activities. The determination of the acquisition 
7.14 	method and all decisions involved in the acquisition process, unless otherwise provided 
7.15 	for by law, shall be based on best value which includes an evaluation of price and may 
7.16 	include other considerations including, but not limited to, environmental considerations, 
7.17 	quality, and vendor performance. In achieving best value, the commissioner may employ 
7.18 	methods including best and final offers, negotiations, contract consolidation, product 
7.19 	standardization, mandatory-use contracts, total cost of ownership assessments, and other 
7.20 	strategic sourcing techniques. The commissioner shall engage in enterprise procurements 
7.21 	to the extent practicable. A best value determination must be based on the evaluation 
7.22 	criteria detailed in the solicitation document. If criteria other than price are used, the 
7.23 	solicitation document must state the relative importance of price and other factors. For all 
7.24 	systems integration projects that exceed $500,000 in cost: 
7.25 	(1) contract awards must be based on the proposal that provides best value to the 
7.26 	state's requirements, as determined by the evaluation criteria contained in the solicitation 
7.27 	document; and
7.28 	(2) the evaluation criteria for the selection of a contractor must be objective and 
7.29 	not limited to cost alone.
7.30 	Unless it is determined by the commissioner that an alternative solicitation method 
7.31 	provided by law should be used to determine best value, a request for bid must be used to 
7.32 	solicit formal responses for all building and construction contracts. Any or all responses 
7.33 	may be rejected. When using the request for bid process, the bid must be awarded to 
7.34 	the lowest responsive and responsible bidder, taking into consideration conformity with 
7.35 	the specifications, terms of delivery, the purpose for which the contract or purchase is 
8.1 	intended, the status and capability of the vendor, and other considerations imposed in the 
8.2 	request for bids. The commissioner may decide which is the lowest responsible bidder 
8.3 	for all purchases and may use the principles of life-cycle costing, where appropriate, in 
8.4 	determining the lowest overall bid. The duties set forth in this subdivision are subject to 
8.5 	delegation pursuant to this section. 

8.6 	Sec. 16. Minnesota Statutes 2004, section 16C.03, subdivision 4, is amended to read:
8.7 		Subd. 4.Contracting authority. The commissioner shall conduct all contracting by, 
8.8 	for, and between agencies and perform all contract management and review functions for 
8.9 	contracts, except those functions specifically delegated to be performed by the contracting 
8.10 	agency, the attorney general, or otherwise provided for by law. The commissioner must 
8.11 	involve agency staff and agency staff must participate in the development of enterprise 
8.12 	procurements including the development of product standards, specifications, and other 
8.13 	requirements.

8.14 	Sec. 17. Minnesota Statutes 2004, section 16C.03, subdivision 8, is amended to read:
8.15 		Subd. 8.Policy and procedures. The commissioner is authorized to issue policies, 
8.16 	procedures, and standards applicable to all acquisition activities by and for agencies.
8.17 	Consistent with the authority specified in this chapter, the commissioner shall develop 
8.18 	and implement policies, procedures, and standards ensuring the optimal use of strategic 
8.19 	sourcing techniques.

8.20 	Sec. 18. Minnesota Statutes 2004, section 16C.03, subdivision 13, is amended to read:
8.21 		Subd. 13.Central stores. The commissioner is authorized to provide agencies with 
8.22 	supplies and equipment and operate all central stores and supply rooms serving more 
8.23 	than one agency. The commissioner may require agency use of this service if consistent 
8.24 	with "best value."

8.25 	Sec. 19. Minnesota Statutes 2004, section 16C.03, subdivision 16, is amended to read:
8.26 		Subd. 16.Delegation of duties. The commissioner may delegate duties imposed by 
8.27 	this chapter to the head of an agency and to any subordinate of the agency head. Delegated 
8.28 	duties shall be exercised in the name of the commissioner and under the commissioner's 
8.29 	direct supervision and control. A delegation of duties may include, but is not limited to, 
8.30 	allowing individuals within agencies to acquire goods, services, and utilities within dollar 
8.31 	limitations and for designated types of acquisitions. Delegation of contract management 
8.32 	and review functions must be filed with the secretary of state and may not, except with 
9.1 	respect to delegations within the Department of Administration, exceed two years in 
9.2 	duration. The commissioner may withdraw any delegation at the commissioner's sole 
9.3 	discretion. The commissioner may require an agency head or subordinate to accept 
9.4 	delegated responsibility to procure goods or services intended for the exclusive use of the 
9.5 	agency receiving the delegation.

9.6 	Sec. 20. Minnesota Statutes 2004, section 16C.04, subdivision 1, is amended to read:
9.7 		Subdivision 1.Duty. An employee of the executive branch involved directly or 
9.8 	indirectly in the acquisition or grants process, at any level, is subject to the code of ethics 
9.9 	in section  43A.38. 

9.10 	Sec. 21. Minnesota Statutes 2004, section 16C.04, subdivision 2, is amended to read:
9.11 		Subd. 2.Conflict of interest policy development. (a) The commissioner must 
9.12 	develop policies regarding code of ethics and conflict of interest designed to prevent 
9.13 	conflicts of interest for employees involved in the acquisition of goods, services, and 
9.14 	utilities or the award and administration of grant contracts. The policies must apply to 
9.15 	employees who are directly or indirectly involved in the acquisition of goods, services, 
9.16 	and utilities, developing requests for proposals, evaluating bids or proposals, awarding 
9.17 	the contract, selecting the final vendor, drafting and entering into contracts, evaluating 
9.18 	performance under these contracts, and authorizing payments under the contract.
9.19 	(b) The policies must contain a process for making employees aware of policy and 
9.20 	laws relating to conflict of interest, and for training employees on how to avoid and deal 
9.21 	with potential conflicts.
9.22 	(c) The policies must contain a process under which an employee who has a conflict 
9.23 	of interest or a potential conflict of interest must disclose the matter, and a process under 
9.24 	which work on the contract may be assigned to another employee if possible.

9.25 	Sec. 22. Minnesota Statutes 2004, section 16C.05, subdivision 1, is amended to read:
9.26 		Subdivision 1.Agency cooperation. Agencies shall fully cooperate with the 
9.27 	commissioner in the management and review of state contracts and in the development 
9.28 	and implementation of strategic sourcing techniques.

9.29 	Sec. 23. Minnesota Statutes 2004, section 16C.05, subdivision 2, is amended to read:
9.30 		Subd. 2.Creation and validity of contracts. (a) A contract is not valid and the state 
9.31 	is not bound by it and no agency, without the prior written approval of the commissioner 
9.32 	granted pursuant to subdivision 2a, may authorize work to begin on it unless:
10.1 	(1) it has first been executed by the head of the agency or a delegate who is a party 
10.2 	to the contract;
10.3 	(2) it has been approved by the commissioner; and
10.4 	(3) the accounting system shows an encumbrance for the amount of the contract 
10.5 	liability, except as allowed by policy approved by the commissioner and the commissioner 
10.6 	of finance for routine, low-dollar procurements.
10.7 	(b) The combined contract and amendments must not exceed five years without 
10.8 	specific, written approval by the commissioner according to established policy, procedures, 
10.9 	and standards, or unless otherwise provided for by law. The term of the original contract 
10.10 	must not exceed two years unless the commissioner determines that a longer duration is 
10.11 	in the best interest of the state.
10.12 	(c) Grants, Interagency agreements, purchase orders, work orders, and annual plans 
10.13 	need not, in the discretion of the commissioner and attorney general, require the signature 
10.14 	of the commissioner and/or the attorney general. A signature is not required for work 
10.15 	orders and amendments to work orders related to Department of Transportation contracts. 
10.16 	Bond purchase agreements by the Minnesota Public Facilities Authority do not require 
10.17 	the approval of the commissioner.
10.18 	(d) Amendments to contracts must entail tasks that are substantially similar to 
10.19 	those in the original contract or involve tasks that are so closely related to the original 
10.20 	contract that it would be impracticable for a different contractor to perform the work. The 
10.21 	commissioner or an agency official to whom the commissioner has delegated contracting 
10.22 	authority under section  16C.03, subdivision 16, must determine that an amendment would 
10.23 	serve the interest of the state better than a new contract and would cost no more. 
10.24 	(e) A fully executed copy of every contract, amendments to the contract, and 
10.25 	performance evaluations relating to the contract must be kept on file at the contracting 
10.26 	agency for a time equal to that specified for contract vendors and other parties in 
10.27 	subdivision 5.
10.28 	(f) The attorney general must periodically review and evaluate a sample of state 
10.29 	agency contracts to ensure compliance with laws.

10.30 	Sec. 24. Minnesota Statutes 2004, section 16C.05, subdivision 5, is amended to read:
10.31 		Subd. 5.Subject to audit. A contract or any pass-through disbursement of public 
10.32 	funds to a vendor of goods or services or a grantee made by or under the supervision of 
10.33 	the commissioner or any county or unit of local government must include, expressed or 
10.34 	implied, an audit clause that provides that the books, records, documents, and accounting 
10.35 	procedures and practices of the vendor or other party, that are relevant to the contract 
11.1 	or transaction, are subject to examination by the contracting agency and either the 
11.2 	legislative auditor or the state auditor, as appropriate, for a minimum of six years. If the 
11.3 	contracting agency is a local unit of government, and the governing body of the local unit 
11.4 	of government requests that the state auditor examine the books, records, documents, 
11.5 	and accounting procedures and practices of the vendor or other party pursuant to this 
11.6 	subdivision, the contracting agency shall be liable for the cost of the examination. If the 
11.7 	contracting agency is a local unit of government, and the grantee, vendor, or other party 
11.8 	requests that the state auditor examine all books, records, documents, and accounting 
11.9 	procedures and practices related to the contract, the grantee, vendor, or other party that 
11.10 	requested the examination shall be liable for the cost of the examination. An agency 
11.11 	contract made for purchase, lease, or license of software and data from the state is not 
11.12 	required to contain this audit clause.

11.13 	Sec. 25. Minnesota Statutes 2004, section 16C.08, is amended by adding a subdivision 
11.14 	to read:
11.15 		Subd. 1a.Enterprise procurement process. Notwithstanding section 15.061 or 
11.16 	any other law, the commissioner shall, to the fullest extent practicable, conduct enterprise 
11.17 	procurements that result in the establishment of professional or technical contracts for use 
11.18 	by multiple state agencies. The commissioner may mandate use of any contract entered 
11.19 	into as a result of an enterprise procurement process. Agencies shall fully cooperate in the 
11.20 	development and use of contracts entered into under this section.

11.21 	Sec. 26. Minnesota Statutes 2004, section 16C.08, subdivision 2, is amended to read:
11.22 		Subd. 2.Duties of contracting agency. (a) Before an agency may seek approval of 
11.23 	a professional or technical services contract valued in excess of $5,000, it must provide 
11.24 	the following:
11.25 	(1) a description of how the proposed contract or amendment is necessary and 
11.26 	reasonable to advance the statutory mission of the agency;
11.27 	(2) a description of the agency's plan to notify firms or individuals who may be 
11.28 	available to perform the services called for in the solicitation; and
11.29 	(3) a description of the performance measures or other tools that will be used to 
11.30 	monitor and evaluate contract performance.; and
11.31 	(4) an explanation detailing, if applicable, why this procurement is being pursued 
11.32 	unilaterally by the agency and not as an enterprise procurement.
11.33 	(b) In addition to paragraph (a), the agency must certify that:
12.1 	(1) no current state employee is able and available to perform the services called 
12.2 	for by the contract;
12.3 	(2) the normal competitive bidding mechanisms will not provide for adequate 
12.4 	performance of the services;
12.5 	(3) reasonable efforts will be made to publicize the availability of the contract to 
12.6 	the public;
12.7 	(4) the agency will develop and implement a written plan providing for the 
12.8 	assignment of specific agency personnel to manage the contract, including a monitoring 
12.9 	and liaison function, the periodic review of interim reports or other indications of past 
12.10 	performance, and the ultimate utilization of the final product of the services;
12.11 	(5) the agency will not allow the contractor to begin work before the contract is fully 
12.12 	executed unless an exception under section  16C.05, subdivision 2a, has been granted by 
12.13 	the commissioner and funds are fully encumbered; 
12.14 	(6) the contract will not establish an employment relationship between the state or 
12.15 	the agency and any persons performing under the contract; and
12.16 	(7) in the event the results of the contract work will be carried out or continued by 
12.17 	state employees upon completion of the contract, the contractor is required to include 
12.18 	state employees in development and training, to the extent necessary to ensure that after 
12.19 	completion of the contract, state employees can perform any ongoing work related to 
12.20 	the same function.
12.21 	(c) A contract establishes an employment relationship for purposes of paragraph (b), 
12.22 	clause (6), if, under federal laws governing the distinction between an employee and an 
12.23 	independent contractor, a person would be considered an employee.

12.24 	Sec. 27. Minnesota Statutes 2005 Supplement, section 16C.09, is amended to read:
12.25 	16C.09 PROCEDURE FOR SERVICE CONTRACTS.
12.26 	(a) Before entering into or approving a service contract valued in excess of $5,000, 
12.27 	the commissioner must determine, at least, that:
12.28 	(1) no current state employee is able and available to perform the services called 
12.29 	for by the contract;
12.30 	(2) the work to be performed under the contract is necessary to the agency's 
12.31 	achievement of its statutory responsibilities and there is statutory authority to enter into 
12.32 	the contract;
12.33 	(3) the contract will not establish an employment relationship between the state or 
12.34 	the agency and any persons performing under the contract;
12.35 	(4) the contractor and agents are not employees of the state;
13.1 	(5) the contracting agency has specified a satisfactory method of evaluating and 
13.2 	using the results of the work to be performed; and
13.3 	(6) the combined contract and amendments will not exceed five years without 
13.4 	specific, written approval by the commissioner according to established policy, procedures, 
13.5 	and standards, or unless otherwise provided for by law. The term of the original contract 
13.6 	must not exceed two years, unless the commissioner determines that a longer duration is 
13.7 	in the best interest of the state.
13.8 	(b) For purposes of paragraph (a), clause (1), employees are available if qualified 
13.9 	and:
13.10 	(1) are already doing the work in question; or
13.11 	(2) are on layoff status in classes that can do the work in question.
13.12 	An employee is not available if the employee is doing other work, is retired, or has decided 
13.13 	not to do the work in question.
13.14 	(c) This section does not apply to an agency's use of inmates pursuant to sections 
13.15 	241.20 to 241.23 or to an agency's use of persons required by a court to provide:
13.16 	(1) community service; or
13.17 	(2) conservation or maintenance services on lands under the jurisdiction and control 
13.18 	of the state.

13.19 	Sec. 28. Minnesota Statutes 2005 Supplement, section 16C.10, subdivision 7, is 
13.20 	amended to read:
13.21 		Subd. 7.Reverse auction. (a) For the purpose of this subdivision, "reverse auction" 
13.22 	means a purchasing process in which vendors compete to provide goods or computer
13.23 	services at the lowest selling price in an open and interactive environment. Reverse 
13.24 	auctions may not be utilized to procure architectural or engineering design services or to 
13.25 	establish building and construction contracts under sections 16C.26 to 16C.29.
13.26 	(b) The provisions of sections 13.591, subdivision 3, and 16C.06, subdivision 2, 
13.27 	do not apply when the commissioner determines that a reverse auction is the appropriate 
13.28 	purchasing process.

13.29 	Sec. 29. [16E.21] INFORMATION AND TELECOMMUNICATIONS 
13.30 	ACCOUNT.
13.31 		Subdivision 1.Account established; appropriation. The information and 
13.32 	telecommunications technology systems and services account is created in the special 
13.33 	revenue fund. Funds deposited in the account are appropriated to the Office of Enterprise 
14.1 	Technology to defray the costs of personnel and technology for activities that create 
14.2 	government efficiencies in accordance with this chapter.
14.3 		Subd. 2.Charges. Upon agreement of the participating agency, a charge may 
14.4 	be collected by the Office of Enterprise Technology for purchases of information and 
14.5 	telecommunications technology systems and services by state agencies and other 
14.6 	governmental entities through state contracts for purposes described in subdivision 
14.7 	1. Charges collected under this section must be credited to the information and 
14.8 	telecommunications technology systems and services account.

14.9 	Sec. 30. Minnesota Statutes 2004, section 43A.08, subdivision 1a, is amended to read:
14.10 		Subd. 1a.Additional unclassified positions. Appointing authorities for the 
14.11 	following agencies may designate additional unclassified positions according to this 
14.12 	subdivision: the Departments of Administration; Agriculture; Commerce; Corrections; 
14.13 	Education; Employee Relations; Employment and Economic Development; Finance; 
14.14 	Health; Human Rights; Labor and Industry; Natural Resources; Public Safety; Human 
14.15 	Services; Revenue; Transportation; and Veterans Affairs; the Housing Finance and 
14.16 	Pollution Control Agencies; the State Lottery; the state Board of Investment; the Office of 
14.17 	Enterprise Technology; the Office of Administrative Hearings; the Office of Environmental 
14.18 	Assistance; the Offices of the Attorney General, Secretary of State, and State Auditor; 
14.19 	the Minnesota State Colleges and Universities; the Higher Education Services Office; the 
14.20 	Perpich Center for Arts Education; and the Minnesota Zoological Board.
14.21 	A position designated by an appointing authority according to this subdivision must 
14.22 	meet the following standards and criteria:
14.23 	(1) the designation of the position would not be contrary to other law relating 
14.24 	specifically to that agency;
14.25 	(2) the person occupying the position would report directly to the agency head or 
14.26 	deputy agency head and would be designated as part of the agency head's management 
14.27 	team;
14.28 	(3) the duties of the position would involve significant discretion and substantial 
14.29 	involvement in the development, interpretation, and implementation of agency policy;
14.30 	(4) the duties of the position would not require primarily personnel, accounting, or 
14.31 	other technical expertise where continuity in the position would be important;
14.32 	(5) there would be a need for the person occupying the position to be accountable to, 
14.33 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
14.34 	board or commission, or the employing constitutional officer;
15.1 	(6) the position would be at the level of division or bureau director or assistant 
15.2 	to the agency head; and
15.3 	(7) the commissioner has approved the designation as being consistent with the 
15.4 	standards and criteria in this subdivision.

15.5 	Sec. 31. Minnesota Statutes 2004, section 43A.17, subdivision 4, is amended to read:
15.6 		Subd. 4.Exceptions. (a) The commissioner may without regard to subdivision 1 
15.7 	establish special salary rates and plans of compensation designed to attract and retain 
15.8 	exceptionally qualified doctors of medicine and doctors of dental surgery. These rates 
15.9 	and plans shall be included in the commissioner's plan. In establishing salary rates and 
15.10 	eligibility for nomination for payment at special rates, the commissioner shall consider the 
15.11 	standards of eligibility established by national medical specialty boards where appropriate. 
15.12 	The incumbents assigned to these special ranges shall be excluded from the collective 
15.13 	bargaining process.
15.14 	(b) The commissioner may without regard to subdivision 1, but subject to collective 
15.15 	bargaining agreements or compensation plans, establish special salary rates designed to 
15.16 	attract and retain exceptionally qualified employees in the following positions:
15.17 	(1) information systems staff;
15.18 	(2) actuaries in the Departments of Health, Human Services, and Commerce; and
15.19 	(3) epidemiologists in the Department of Health.

15.20 	Sec. 32. [43A.312] CENTER FOR HEALTH CARE PURCHASING 
15.21 	IMPROVEMENT.
15.22 		Subdivision 1.Establishment; administration. The commissioner shall establish 
15.23 	and administer the Center for Health Care Purchasing Improvement as an administrative 
15.24 	unit within the Department of Employee Relations. The Center for Health Care Purchasing 
15.25 	Improvement shall support the state in its efforts to be a more prudent and efficient 
15.26 	purchaser of quality health care services. The center shall aid the state in developing and 
15.27 	using more common strategies and approaches for health care performance measurement 
15.28 	and health care purchasing. The common strategies and approaches must promote greater 
15.29 	transparency of health care costs and quality, and greater accountability for health 
15.30 	care results and improvement. The center shall also identify barriers to more efficient, 
15.31 	effective, quality health care and options for overcoming the barriers.
15.32 		Subd. 2.Staffing; duties; scope. (a) The commissioner may appoint a director, and 
15.33 	up to three additional senior-level staff or codirectors, and other staff as needed who are 
16.1 	under the direction of the commissioner. The staff of the center are in the unclassified 
16.2 	service.
16.3 	(b) With the authorization of the commissioner of employee relations, and in 
16.4 	consultation or interagency agreement with the appropriate commissioners of state 
16.5 	agencies, the director, or codirectors, may:
16.6 	(1) initiate projects to develop plan designs for state health care purchasing;
16.7 	(2) require reports or surveys to evaluate the performance of current health care 
16.8 	purchasing strategies;
16.9 	(3) calculate fiscal impacts, including net savings and return on investment, of health 
16.10 	care purchasing strategies and initiatives;
16.11 	(4) conduct policy audits of state programs to measure conformity to state statute or 
16.12 	other purchasing initiatives or objectives;
16.13 	(5) support the Administrative Uniformity Committee under section 62J.50 and 
16.14 	other relevant groups or activities to advance agreement on health care administrative 
16.15 	process streamlining;
16.16 	(6) consult with the Health Economics Unit of the Department of Health regarding 
16.17 	reports and assessments of the health care marketplace;
16.18 	(7) consult with the Departments of Health and Commerce regarding health care 
16.19 	regulatory issues and legislative initiatives;
16.20 	(8) work with appropriate Department of Human Services staff and the Centers for 
16.21 	Medicare and Medicaid Services to address federal requirements and conformity issues 
16.22 	for health care purchasing;
16.23 	(9) assist the Minnesota Comprehensive Health Association in health care 
16.24 	purchasing strategies;
16.25 	(10) convene medical directors of agencies engaged in health care purchasing for 
16.26 	advice, collaboration, and exploring possible synergies;
16.27 	(11) contact and participate with other relevant health care task forces, study 
16.28 	activities, and similar efforts with regard to health care performance measurement and 
16.29 	performance-based purchasing; and
16.30 	(12) assist in seeking external funding through appropriate grants or other funding 
16.31 	opportunities and may administer grants and externally funded projects.
16.32 		Subd. 3.Report. The commissioner must report annually to the legislature and the 
16.33 	governor on the operations, activities, and impacts of the center. The report must be 
16.34 	posted on the Department of Employee Relations Web site and must be available to the 
16.35 	public. The report must include a description of the state's efforts to develop and use more 
16.36 	common strategies for health care performance measurement and health care purchasing. 
17.1 	The report must also include an assessment of the impacts of these efforts, especially in 
17.2 	promoting greater transparency of health care costs and quality, and greater accountability 
17.3 	for health care results and improvement.

17.4 	Sec. 33. Minnesota Statutes 2004, section 43A.316, subdivision 3, is amended to read:
17.5 		Subd. 3.Public employee insurance buyers group program. The commissioner 
17.6 	shall be the administrator of the public employee insurance buyers group program and 
17.7 	may determine its funding arrangements. The commissioner shall model the program 
17.8 	after the plan established in section  43A.18, subdivision 2, but may modify that plan, 
17.9 	in consultation with the Labor-Management Committee. The commissioner, or the 
17.10 	commissioner's designated representatives, shall be consulted in discussions or studies 
17.11 	by state agencies related to improving statewide health care quality, outcomes, and costs. 
17.12 	The commissioner may develop and administer separately rated programs within the 
17.13 	public buyers group program, including a separately rated and administered program for 
17.14 	employees of public school districts. Separate programs within the public buyers group 
17.15 	program may be pilot or demonstration programs, or permanent programs.

17.16 	Sec. 34. Minnesota Statutes 2005 Supplement, section 43A.346, subdivision 1, is 
17.17 	amended to read:
17.18 		Subdivision 1.Definition. For purposes of this section, "state employee" means a 
17.19 	person currently occupying a civil service position in the executive or legislative branch of 
17.20 	state government, the Minnesota State Retirement System, or the Office of the Legislative 
17.21 	Auditor, or a person employed by the Metropolitan Council.

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

17.23 	Sec. 35. Minnesota Statutes 2004, section 145.925, is amended by adding a subdivision 
17.24 	to read:
17.25 		Subd. 10.Definition of governmental unit. For purposes of section 471.59, 
17.26 	subdivision 1, nonprofit community health clinics providing family planning services as 
17.27 	defined in this section shall be included in the definition of "governmental unit."

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

17.29 	Sec. 36. Minnesota Statutes 2004, section 181.9413, is amended to read:
17.30 	181.9413 SICK OR INJURED CHILD CARE LEAVE BENEFITS; USE TO 
17.31 	CARE FOR CERTAIN RELATIVES.
18.1 	(a) An employee may use personal sick leave benefits provided by the employer 
18.2 	for absences due to an illness of or injury to the employee's child, spouse, sibling, 
18.3 	parent, grandparent, or stepparent, and any dependents who receive regular care from the 
18.4 	employee for such reasonable periods as the employee's attendance with the child may be 
18.5 	necessary, on the same terms upon which the employee is able to use sick leave benefits 
18.6 	for the employee's own illness or injury. This section applies only to personal sick leave 
18.7 	benefits payable to the employee from the employer's general assets.
18.8 	(b) For purposes of this section, "personal sick leave benefits" means time accrued 
18.9 	and available to an employee to be used as a result of absence from work due to personal 
18.10 	illness or injury, but does not include short-term or long-term disability or other salary 
18.11 	continuation benefits.

18.12 	EFFECTIVE DATE. This section is effective August 1, 2006, and applies to sick 
18.13 	leave used on or after that date.

18.14 	Sec. 37. [181.947] LEAVE FOR IMMEDIATE FAMILY MEMBERS OF 
18.15 	MILITARY PERSONNEL INJURED OR KILLED IN ACTIVE SERVICE.
18.16 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
18.17 	section.
18.18 	(b) "Active service" has the meaning given in section 190.05, subdivisions 5b and 5c.
18.19 	(c) "Employee" means a person who performs services for compensation, in 
18.20 	whatever form, for an employer.
18.21 	(d) "Employer" means a person or entity located or doing business in this state 
18.22 	and having one or more employees, and includes the state and all political or other 
18.23 	governmental subdivisions of the state.
18.24 	(e) "Immediate family member" means a person's grandparent, parent, legal 
18.25 	guardian, sibling, child, grandchild, spouse, fiance, or fiancee.
18.26 		Subd. 2.Unpaid leave required. An employer must grant a leave of absence 
18.27 	without pay to an employee whose immediate family member, as a member of the 
18.28 	United States armed forces, has been injured or killed while engaged in active service. 
18.29 	The length of the leave must be determined by the employee, but may not exceed five 
18.30 	working days, unless agreed to by the employer. The purpose of the leave is to attend to 
18.31 	an injured immediate family member or to attend services for and attend to the affairs of 
18.32 	an immediate family member who has been killed.
18.33 		Subd. 3.Notice. An employee must give as much notice to the employee's employer 
18.34 	as practicable of the employee's intent to exercise the leave guaranteed by this section.
19.1 		Subd. 4.Relationship to other leave. The length of leave provided under this 
19.2 	section may be reduced by any period of paid leave provided by the employer. Nothing 
19.3 	in this section prevents an employer from providing leave benefits in addition to those 
19.4 	provided in this section or otherwise affects an employee's rights with respect to other 
19.5 	employment benefits.
19.6 		Subd. 5.Posting of law. The Department of Labor and Industry shall develop, 
19.7 	with the assistance of interested business and veterans' organizations, an educational 
19.8 	poster stating employees' rights under this section. The department shall make the poster 
19.9 	available, upon request, to employers for posting on the employer's premises.
19.10 		Subd. 6.Individual remedies. In addition to any other remedies provided by law, a 
19.11 	person injured by a violation of this section may bring a civil action to recover any and all 
19.12 	damages recoverable at law, together with costs and disbursements, including reasonable 
19.13 	attorney fees, and may receive injunctive and other equitable relief as determined by a 
19.14 	court.

19.15 	EFFECTIVE DATE. This section is effective the day following final enactment 
19.16 	and applies to the immediate family members of military personnel injured or killed on or 
19.17 	after that date, as well as to the immediate family members of military personnel, who, on 
19.18 	the effective date, are recovering from injuries that occurred before that date.

19.19 	Sec. 38. [181.948] LEAVE TO ATTEND MILITARY CEREMONIES.
19.20 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
19.21 	have the meaning given to them in this subdivision.
19.22 	(b) "Employee" means a person who performs services for compensation, in 
19.23 	whatever form, for an employer.
19.24 	(c) "Employer" means a person or entity located or doing business in this state 
19.25 	and having one or more employees, and includes the state and all political or other 
19.26 	governmental subdivisions of the state.
19.27 	(d) "Immediate family member" means a person's grandparent, parent, legal 
19.28 	guardian, sibling, child, grandchild, spouse, fiance, or fiancee.
19.29 		Subd. 2.Unpaid leave required.  An employer shall grant a leave of absence 
19.30 	without pay to an employee for the actual time necessary for an employee to attend a 
19.31 	send-off or homecoming ceremony for an immediate family member who, as a member of 
19.32 	the United States armed forces, has been mobilized for active service in support of a war or 
19.33 	other national emergency. The leave required by this subdivision must not exceed one day.

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

20.1 	Sec. 39. Minnesota Statutes 2005 Supplement, section 192.502, is amended by adding 
20.2 	a subdivision to read:
20.3 		Subd. 3.Unpaid leave to attend military ceremonies. Employees are entitled 
20.4 	to unpaid leave, as provided in section 181.948, to attend the send-off or homecoming 
20.5 	ceremony of an immediate family member who, as a member of the United States 
20.6 	armed forces, has been mobilized for active service in support of a war or other national 
20.7 	emergency.

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

20.9 	Sec. 40. Minnesota Statutes 2005 Supplement, section 192.502, is amended by adding 
20.10 	a subdivision to read:
20.11 		Subd. 4.Unpaid leave for families of injured or deceased military members.
 20.12 	Employees are entitled to unpaid leave, as provided in section 181.947, when an 
20.13 	immediate family member, as a member of the United States armed forces, has been 
20.14 	injured or killed while engaged in active service.

20.15 	EFFECTIVE DATE. This section is effective the day following final enactment 
20.16 	and applies to the immediate family members of military personnel injured or killed on or 
20.17 	after that date, as well as to the immediate family members of military personnel, who, on 
20.18 	the effective date, are recovering from injuries that occurred before that date.

20.19 	Sec. 41. [197.775] HIGHER EDUCATION FAIRNESS.
20.20 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
20.21 	section.
20.22 	(b) "Commissioner" means the commissioner of veterans affairs.
20.23 	(c) "State college or university" means a unit of the University of Minnesota or 
20.24 	Minnesota State Colleges and Universities.
20.25 		Subd. 2.Recognition of courses. (a) Minnesota State Colleges and Universities 
20.26 	must recognize courses and award educational credits for courses that were part of a 
20.27 	veteran's military training or service if the courses meet the standards of the American 
20.28 	Council on Education or equivalent standards for awarding academic credits.
20.29 	(b) The University of Minnesota and private colleges and universities in this state 
20.30 	are encouraged to recognize courses and award educational credits for courses that were 
20.31 	part of a veteran's military training or service if the courses meet the standards of the 
20.32 	American Council on Education or equivalent standards for awarding academic credits.
21.1 		Subd. 3.Tuition status. A state college or university must treat a veteran as a 
21.2 	resident of this state for purposes of determining the veteran's undergraduate tuition rate, 
21.3 	and must treat a veteran as a resident of this state for purposes of determining the veteran's 
21.4 	graduate school tuition rate if the veteran was a resident of this state on entering military 
21.5 	service and starts attending the state college or university graduate program within two 
21.6 	years of completing military service.
21.7 		Subd. 4.Delayed payment of tuition. A state college or university may not assess 
21.8 	late fees or other late charges for veterans who are eligible and have applied for federal 
21.9 	educational assistance but have not yet received it, nor may it prevent these students from 
21.10 	registering for a subsequent term because of outstanding tuition charges that arise from 
21.11 	delayed federal payments. The state college or university may request without delay 
21.12 	the amount of tuition above expected federal educational assistance and may require 
21.13 	payment of the full amount of tuition owed by the veteran within 30 days of receipt of the 
21.14 	expected federal educational assistance.

21.15 	Sec. 42. Minnesota Statutes 2004, section 270B.14, is amended by adding a 
21.16 	subdivision to read:
21.17 		Subd. 19.Disclosure to commissioner of finance. The commissioner may disclose 
21.18 	to the commissioner of finance returns or return information necessary in order to prepare 
21.19 	a revenue forecast under section 16A.103.

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

21.21 	Sec. 43. [353.95] ACCOUNTS FOR POSTEMPLOYMENT BENEFITS 
21.22 	DEMONSTRATION.
21.23 		Subdivision 1.Establishment. The Public Employees Retirement Association must 
21.24 	establish a fund that the city of Duluth may use to hold money to pay for postemployment 
21.25 	benefits owed to officers and employees after termination of service. The fund must 
21.26 	provide that the account is irrevocable, and that money may be withdrawn only as 
21.27 	permitted in this section. All money in the fund is appropriated to the Public Employees 
21.28 	Retirement Association for purposes of this section.
21.29 		Subd. 2.Account maintenance and investment. The city may establish an account 
21.30 	in the fund created in this section. The Public Employees Retirement Association shall 
21.31 	maintain a separate account for the city. The Public Employees Retirement Association 
21.32 	may charge the city fees for reasonable administrative costs, and the amount of those fees 
21.33 	is appropriated to the association from the account. The Public Employees Retirement 
21.34 	Association may establish other terms and conditions for participation in the fund.
22.1 		Subd. 3.Status of irrevocable fund. (a) All money in the irrevocable fund created 
22.2 	in this section is held in trust for the exclusive benefit of former officers and employees of 
22.3 	the city, and is not subject to claims by creditors of the state, the city, or the current and 
22.4 	former officers and employees of the city.
22.5 	(b) The irrevocable fund created in this section shall be deemed an arrangement 
22.6 	equivalent to a trust for all legal purposes.

22.7 	Sec. 44. OFFICE OF ADMINISTRATIVE HEARINGS RELOCATION.
 22.8 	If the commissioner of administration renovates the Stassen Building to 
22.9 	accommodate the relocation of the Office of Administrative Hearings, the requirements of 
22.10 	Minnesota Statutes, section 16B.33, subdivision 3, are waived.

22.11 	Sec. 45. PLAN FOR COLOCATION OF CERTAIN MINORITY AFFAIRS 
22.12 	COUNCILS.
 22.13 	The Division of Management Analysis in the Department of Administration must 
22.14 	review the current organization and administrative functions of the Council on Black 
22.15 	Minnesotans, the Council on Affairs of Chicano/Latino People, and the Council on 
22.16 	Asian-Pacific Minnesotans, and prepare a plan for colocating the councils. The plan 
22.17 	must include a detailed proposal for combining administrative support functions for the 
22.18 	councils, a proposed location and timetable, and a cost estimate, including a description of 
22.19 	potential savings and benefits to the councils. The division must provide a copy of the 
22.20 	plan to the commissioner of administration, the executive directors of the councils, and the 
22.21 	chairs of the legislative committees with jurisdiction over the councils by November 15, 
22.22 	2006. Beginning 30 days after submission of the report, the commissioner may terminate 
22.23 	current lease arrangements for the councils as necessary and relocate the councils to a 
22.24 	location recommended in the report.

22.25 	Sec. 46. COUNCIL ON BLACK MINNESOTANS; APPOINTMENT OF CHAIR.
 22.26 	Notwithstanding Minnesota Statutes, section 3.9225, subdivision 1, the term of the 
22.27 	current chair of the Council on Black Minnesotans ends July 1, 2006. The governor must 
22.28 	appoint an additional voting member who shall serve as a new chair for the council by that 
22.29 	date for a one-year term and each January 1 thereafter. This section expires on July 1, 
22.30 	2009, or when the Office of the Legislative Auditor issues a financial audit of the council 
22.31 	without any unresolved audit findings, if the audit is issued before July 1, 2009.

22.32 	Sec. 47. REPORT ON STATE PROCUREMENT CHANGES.
 23.1 	By January 15, 2008, the commissioner of administration must report to the chairs of 
23.2 	the legislative committees with jurisdiction over state procurement regarding the impact 
23.3 	on Minnesota businesses of the changes made to Minnesota Statutes, chapter 16C, during 
23.4 	the 2006 legislative session and the use of strategic sourcing techniques, including an 
23.5 	analysis of the size of contracts and type of contract award recipients.

23.6 	Sec. 48. VICTORY MEMORIAL DRIVE TASK FORCE.
 23.7 		Subdivision 1.Task force established. An implementation and steering task 
23.8 	force is established to develop strategies around the master plan for restoration of 
23.9 	Victory Memorial Drive Historic District, as designated in Minnesota Statutes, section 
23.10 	138.73, subdivision 26, including, but not limited to, efforts to secure National Register 
23.11 	designation and other efforts to provide funding to preserve and restore the district's 
23.12 	significant historical components and natural features.
23.13 		Subd. 2.Membership. The implementation and steering task force shall consist 
23.14 	of 13 members including: 
23.15 	(1) the director of the Minnesota Historical Society or a designee;
23.16 	(2) the Minneapolis City Council member representing the area;
23.17 	(3) the Robbinsdale City Council member representing the area;
23.18 	(4) the chair of the Hennepin County Board of Commissioners or the chair's 
23.19 	designee;
23.20 	(5) the president of the Minneapolis Park and Recreation Board or the president's 
23.21 	designee;
23.22 	(6) two members from the house of representatives representing the area;
23.23 	(7) two members of the senate representing the area;
23.24 	(8) two citizen representatives appointed by the chair; and
23.25 	(9) two representatives from local veterans organizations appointed by the chair.
23.26 		Subd. 3.Report. The implementation and steering task force shall report its actions 
23.27 	to the appropriate policy committees of the legislature once each biennium.
23.28 		Subd. 4.Staff support. The State Historic Preservation Office of the Minnesota 
23.29 	Historical Society; the Minneapolis Heritage Preservation Commission; the Minneapolis 
23.30 	Department of Public Works; the Minneapolis Department of Grants and Planning; the 
23.31 	Minneapolis Park Board; and the city of Robbinsdale shall provide staff support to the 
23.32 	Victory Memorial Drive Implementation and Steering Task Force.
23.33 		Subd. 5.Compensation. Task force members may be compensated for expenses 
23.34 	according to Minnesota Statutes, section 15.0575, subdivision 3.
24.1 		Subd. 6.Sunset. The implementation and steering task force expires on December 
24.2 	31, 2009.

24.3 	Sec. 49. RULEMAKING REQUIRED.
 24.4 	(a) This section applies to a state agency, as defined in Minnesota Statutes, section 
24.5 	14.02:
24.6 	(1) that was required to adopt rules by a law enacted during or since the 2003 
24.7 	legislative session; and
24.8 	(2) that did not publish a notice of intent to adopt rules or a notice of hearing within 
24.9 	the time limit prescribed by Minnesota Statutes, section 14.125.
24.10 	(b) Notwithstanding the time limit in Minnesota Statutes, section 14.125, an agency 
24.11 	subject to this section must adopt the rules it was mandated to adopt. The agency must 
24.12 	publish a notice of intent to adopt rules or a notice of hearing for rules subject to this 
24.13 	section before January 1, 2007.

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

24.15 	Sec. 50. DESIGNER SELECTION BOARD REPORT.
 24.16 	By January 15, 2007, the commissioner of administration shall consult with 
24.17 	organizations listed in Minnesota Statutes, section 16B.33, subdivision 2, and report to the 
24.18 	legislature on the advantages and disadvantages of alternative procedures under which 
24.19 	the state could select a designer for state building projects. 

24.20 	Sec. 51. REVISOR'S INSTRUCTION.
 24.21 	(a) The revisor of statutes shall insert a first grade headnote after Minnesota Statutes, 
24.22 	section 181.946, that reads "LEAVE FOR FAMILIES OF MOBILIZED MILITARY 
24.23 	MEMBERS."
24.24 	(b) The Revisor of Statutes shall replace references in Minnesota Statutes to sections 
24.25 	116R.01 to 116R.16 with references to sections 116R.01 to 116R.15 and make similar 
24.26 	changes to reflect the repeal of section 116R.16.

24.27 	Sec. 52.  REPEALER.
 24.28 	Minnesota Statutes 2004, sections 116R.02, subdivision 7; and 116R.16, are 
24.29 	repealed.