1.1 	A bill for an act
1.2 	relating to government operations; appropriating money for general legislative 
1.3 	and administrative expenses of state government; regulating state and local 
1.4 	government operations; directing the Legislative Coordinating Commission to 
1.5 	assist in fostering an understanding of ethnic and cultural diversity and assist in 
1.6 	issues related to preparedness for terrorism and disasters; creating the position 
1.7 	of poet laureate; imposing a temporary technology surcharge; establishing 
1.8 	provisions for grants management; requiring a state Web site with a searchable 
1.9 	database on state contracts and grants; promoting use of persons with disabilities 
1.10 	for document imaging services; modifying secretary of state provisions; 
1.11 	creating a state employees electronic health records pilot project; abolishing the 
1.12 	Department of Employee Relations and transferring duties; establishing a state 
1.13 	budget trends study commission; requiring best value contracts and procurement 
1.14 	for certain purposes; requiring reports; amending Minnesota Statutes 2006, 
1.15 	sections 3.303, by adding subdivisions; 4.035, subdivision 3; 5.12, subdivision 1; 
1.16 	15.06, subdivision 2; 15B.17, subdivision 1; 16A.102, subdivision 4; 16A.103, 
1.17 	subdivision 1e; 16A.1286, subdivision 2; 16A.695, subdivisions 2, 3, by adding 
1.18 	subdivisions; 16B.24, subdivision 5; 16B.35, subdivision 1; 16C.02, subdivisions 
1.19 	4, 12, 14, by adding subdivisions; 16C.03, subdivisions 2, 3, 4, 8, 16, by adding 
1.20 	subdivisions; 16C.05, subdivisions 1, 2; 16C.08, subdivisions 2, 4, by adding 
1.21 	subdivisions; 16C.10, subdivision 7; 16C.26; 16C.27, subdivision 1; 16C.28; 
1.22 	43A.346, subdivision 1; 103D.811, subdivision 3; 103E.505, subdivision 5; 
1.23 	116A.13, subdivision 5; 123B.52, subdivision 1, by adding a subdivision; 
1.24 	160.17, by adding a subdivision; 160.262, by adding a subdivision; 161.1419, 
1.25 	subdivision 8; 161.32, by adding a subdivision; 161.3412, subdivision 1; 161.38, 
1.26 	subdivision 4; 270B.14, by adding a subdivision; 270C.03, subdivision 1; 
1.27 	302A.821, subdivision 4; 308A.995, subdivision 4; 308B.121, subdivision 
1.28 	4; 308B.215, subdivision 2; 317A.823, subdivision 1; 321.0206; 321.0210; 
1.29 	323A.1003; 336.1-110; 336.9-516; 336.9-525; 358.41; 358.42; 358.50; 359.085, 
1.30 	subdivisions 2, 3; 365.37, by adding a subdivision; 374.13; 375.21, by adding 
1.31 	a subdivision; 383C.094, by adding a subdivision; 412.311; 429.041, by 
1.32 	adding a subdivision; 458D.21, by adding a subdivision; 469.015, by adding 
1.33 	a subdivision; 469.068, subdivision 1, by adding a subdivision; 469.101, by 
1.34 	adding a subdivision; 471.345, subdivision 5, by adding subdivisions; 473.523, 
1.35 	by adding a subdivision; 473.756, subdivision 12; 477A.014, subdivision 4; 
1.36 	491A.02, subdivision 4; 507.24, subdivision 2; 517.08, subdivisions 1b, 1c; 
1.37 	Laws 2005, chapter 156, article 2, section 45; Laws 2006, chapter 253, section 
1.38 	22, subdivision 1; Laws 2006, chapter 282, article 14, section 5; proposing 
1.39 	coding for new law in Minnesota Statutes, chapters 4; 5; 11A; 13; 16B; 16C; 
2.1 	161; 270C; 308B; 321; repealing Minnesota Statutes 2006, sections 16A.102, 
2.2 	subdivisions 1, 2, 3; 16C.055, subdivision 1; 16C.08, subdivision 4a; 69.051, 
2.3 	subdivision 1c; 359.085, subdivision 8.
2.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.5 	ARTICLE 1
2.6 	STATE GOVERNMENT APPROPRIATIONS

2.7	Section 1. SUMMARY OF APPROPRIATIONS.
 	
2.8 	The amounts shown in this section summarize direct appropriations, by fund, made 
2.9 	in this article.

2.10			2008
		2009
		Total
	
2.11	General
	$
	 351,093,000
	$
	 318,435,000
	$
	669,528,000
	
2.12	Health Care Access
	$
	1,871,000
	$
	1,912,000
	$
	3,783,000

2.13
2.14	State Government Special 
Revenue
		2,119,000
		2,124,000
		4,243,000
	
2.15	Environmental
		442,000
		448,000
		890,000
	
2.16	Remediation
		250,000
		250,000
		500,000
	
2.17	Special Revenue
		6,843,000
		3,839,000
		10,682,000
	
2.18
2.19	Highway User Tax 
Distribution
		2,139,000
		2,183,000
		4,322,000
	
2.20	Workers' Compensation
		7,640,000
		7,350,000
		14,990,000
	
2.21	Total
	$
	 372,397,000
	$
	 336,541,000
	$
	708,938,000

2.22	Sec. 2. STATE GOVERNMENT APPROPRIATIONS.
 	
2.23 	The sums shown in the columns marked "appropriations" are appropriated to the 
2.24 	agencies and for the purposes specified in this article. The appropriations are from the 
2.25 	general fund, or another named fund, and are available for the fiscal years indicated 
2.26 	for each purpose. The figures "2008" and "2009" used in this article mean that the 
2.27 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
2.28 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
2.29 	year 2009. "The biennium" is fiscal years 2008 and 2009. 

2.30				APPROPRIATIONS
	
2.31				Available for the Year
	
2.32				Ending June 30
	
2.33					2008
		2009

2.34	Sec. 3. LEGISLATURE

2.35	Subdivision 1.Total Appropriation
 	$
	 74,694,000
	$
	71,544,000

3.1	Appropriations by Fund
	
3.2		2008
	2009
	
3.3	General
	 74,516,000
	71,366,000
	
3.4	Health Care Access
	 178,000
	178,000
	
3.5 	The amounts that may be spent for each 
3.6 	purpose are specified in the following 
3.7 	subdivisions.

3.8	Subd. 2.Senate
 		 25,820,000
		23,677,000
	
3.9 	The base budget for the Senate shall 
3.10 	be $23,427,000 in fiscal year 2010 and 
3.11 	$23,427,000 in fiscal year 2011.

3.12	Subd. 3.House of Representatives
 		 32,686,000
		31,746,000
	
3.13 	The base budget for the house of 
3.14 	representatives shall be $31,496,000 in fiscal 
3.15 	year 2010 and $31,496,000 in fiscal year 
3.16 	2011.
3.17 	During the biennium ending June 30, 2009, 
3.18 	any revenues received by the house of 
3.19 	representatives from sponsorship notices in 
3.20 	broadcast or print media are appropriated to 
3.21 	the house of representatives.

3.22	Subd. 4.Legislative Coordinating Commission
 		 16,188,000
		16,121,000

3.23	Appropriations by Fund
	
3.24	General
	 16,010,000
	15,943,000
	
3.25	Health Care Access 
	 178,000
	178,000
	
3.26 	The base general fund budget for the 
3.27 	Legislative Coordinating Commission shall 
3.28 	be $15,893,000 in fiscal year 2010 and 
3.29 	$15,893,000 in fiscal year 2011.
3.30 	(a) $5,624,000 the first year and $5,469,000 
3.31 	the second year are for the Office of the 
3.32 	Revisor of Statutes.
4.1 	(b) $1,257,000 the first year and $1,254,000 
4.2 	the second year are for the Legislative 
4.3 	Reference Library.
4.4 	(c) $5,719,000 the first year and $5,720,000 
4.5 	the second year are for the Office of the 
4.6 	Legislative Auditor.
4.7 	(d) $250,000 the first year is to the Legislative 
4.8 	Coordinating Commission for a facilitated 
4.9 	planning process relating to the Capitol 
4.10 	building and the Capitol complex. The 
4.11 	process must be conducted in cooperation 
4.12 	with the Capitol Area Architectural and 
4.13 	Planning Board and the commissioner 
4.14 	of administration, and must include 
4.15 	consideration of issues relating to renovation 
4.16 	and possible expansion of the Capitol 
4.17 	building, phasing strategies relating to 
4.18 	renovation of the Capitol, and related Capitol 
4.19 	complex planning issues. The process must 
4.20 	include consideration of as many options as 
4.21 	feasible relating to renovation of the Capitol 
4.22 	and related Capitol complex buildings. The 
4.23 	process must be completed by September 
4.24 	30, 2007. Beginning October 1, 2007, 
4.25 	the Legislative Coordinating Commission 
4.26 	may transfer any unexpended balance from 
4.27 	this appropriation to the commissioner of 
4.28 	administration for additional planning and 
4.29 	design for the renovation of the Capitol 
4.30 	complex.
4.31 	(e) All legislative offices should, whenever 
4.32 	possible, implement information technology 
4.33 	systems that are compatible and work 
4.34 	seamlessly across the legislature. Wherever 
4.35 	possible, single systems should be 
5.1 	implemented to avoid unnecessary 
5.2 	duplication and inefficiency. The directors 
5.3 	of information technology for the senate, 
5.4 	house of representatives, and the Legislative 
5.5 	Coordinating Commission must submit 
5.6 	a written report describing their efforts 
5.7 	to collaborate on implementing shared 
5.8 	information technology systems. The report 
5.9 	must be submitted to the chairs of the house 
5.10 	of representatives and senate committees 
5.11 	with jurisdiction over rules and to the 
5.12 	Legislative Coordinating Commission on 
5.13 	January 15, 2008, and January 15, 2009.

5.14
5.15	Sec. 4. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	3,679,000
	$
	3,777,000
	
5.16 	(a) This appropriation is to fund the Office of 
5.17 	the Governor and Lieutenant Governor.
5.18 	$19,000 the first year and $19,000 the 
5.19 	second year are for necessary expenses in 
5.20 	the normal performance of the governor's 
5.21 	and lieutenant governor's duties for which no 
5.22 	other reimbursement is provided.
5.23 	(b) By September 1 of each year, the 
5.24 	commissioner of finance shall report to 
5.25 	the chairs of the senate Governmental 
5.26 	Operations Budget Division and the house 
5.27 	State Government Finance Division any 
5.28 	personnel costs incurred by the Office of 
5.29 	the Governor and Lieutenant Governor that 
5.30 	were supported by appropriations to other 
5.31 	agencies during the previous fiscal year. 
5.32 	The Office of the Governor shall inform the 
5.33 	chairs of the divisions before initiating any 
5.34 	interagency agreements.

6.1	Sec. 5. STATE AUDITOR
 	$
	9,234,000
	$
	9,220,000

6.2	Sec. 6. ATTORNEY GENERAL
 	$
	 26,162,000
	$
	27,093,000

6.3	Appropriations by Fund
	
6.4		2008
	2009
	
6.5	General
	 24,048,000
	24,974,000
	
6.6
6.7	State Government 
Special Revenue
	1,719,000
	1,724,000
	
6.8	Environmental
	145,000
	145,000
	
6.9	Remediation
	250,000
	250,000

6.10	Sec. 7. SECRETARY OF STATE
 	$
	 9,019,000
	$
	6,497,000

6.11	Appropriations by Fund
	
6.12		2008
	2009
	
6.13	General
	 6,175,000
	6,497,000
	
6.14	Special Revenue
	2,844,000
		
6.15 	(a) $310,000 of this appropriation must be 
6.16 	transferred to the Help America Vote Act 
6.17 	account and is designated as a portion of the 
6.18 	match required by section 253(b)(5) of the 
6.19 	Help America Vote Act.
6.20 	(b) $2,844,000 the first year is appropriated 
6.21 	from the Help America Vote Act account for 
6.22 	the purposes and uses authorized by federal 
6.23 	law. This appropriation is available until 
6.24 	June 30, 2009.
6.25 	(c) Notwithstanding Laws 2005, chapter 
6.26 	162, section 34, subdivision 7, any balance 
6.27 	remaining in the Help America Vote Act 
6.28 	account after previous appropriations and the 
6.29 	appropriations in this section is appropriated 
6.30 	to the secretary of state for the purposes of 
6.31 	the account. This appropriation is available 
6.32 	until June 30, 2011.

6.33
6.34	Sec. 8. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	714,000
	$
	735,000

7.1	Sec. 9. INVESTMENT BOARD
 	$
	151,000
	$
	151,000

7.2
7.3	Sec. 10. OFFICE OF ENTERPRISE 
TECHNOLOGY
 	$
	 16,445,000
	$
	 7,829,000
	
7.4 	(a) $7,500,000 the first year is for the first 
7.5 	phase of an electronic licensing system. 
7.6 	This is a onetime appropriation. This 
7.7 	appropriation carries forward to the second 
7.8 	year.
7.9 	(b) $4,000,000 the first year and $4,000,000 
7.10 	the second year are for information 
7.11 	technology security. The base appropriation 
7.12 	is $2,500,000 in fiscal year 2010 and 
7.13 	$2,500,000 in fiscal year 2011.
7.14 	(c) $1,000,000 the first year is for small 
7.15 	agency technology infrastructure projects. 
7.16 	During the biennium, these amounts are 
7.17 	intended to include hardware and software 
7.18 	improvements for the Asian-Pacific Council, 
7.19 	the Capitol Area Architectural and Planning 
7.20 	Board, the Minnesota Library for the 
7.21 	Blind, the Minnesota State Academies, and 
7.22 	the Ombudsman for Mental Health and 
7.23 	Disabilities.
7.24 	(d) $180,000 the first year is for grants to be 
7.25 	distributed to the counties participating in 
7.26 	the development of the integrated financial 
7.27 	system for enhancements to the system. 
7.28 	Enhancements include:
7.29 	(1) systems to improve the tracking and 
7.30 	reporting of state and federal grants;
7.31 	(2) electronic payments to vendors;
7.32 	(3) electronic posting of state payments to 
7.33 	the financial system;
8.1 	(4) automating revenue collection and 
8.2 	posting through check conversion, automatic 
8.3 	clearing house transactions, or credit card 
8.4 	processing;
8.5 	(5) improvements to county budgetary 
8.6 	systems;
8.7 	(6) storage or linkage of electronic 
8.8 	documents;
8.9 	(7) improved executive level reporting and 
8.10 	extraction of data; and
8.11 	(8) improved information and reporting for 
8.12 	audits.
8.13 	The grant funds shall be distributed on a pro 
8.14 	rata basis to each of the counties participating 
8.15 	in the development of the integrated financial 
8.16 	system. The Minnesota Counties Computer 
8.17 	Cooperative, acting as a fiscal agent for 
8.18 	the participating counties, shall receive the 
8.19 	grant money for the counties. The grants 
8.20 	will only be distributed after $540,000 is 
8.21 	expended or provided from other sources. 
8.22 	The chief information officer may require 
8.23 	a report or such other information as the 
8.24 	chief information officer deems appropriate 
8.25 	to verify that the requirements of this 
8.26 	section have been met. This appropriation 
8.27 	is available until June 30, 2011, and cancels 
8.28 	on that date.
8.29 	The chief information officer shall report to 
8.30 	the legislative committees and divisions with 
8.31 	jurisdiction over state government policy 
8.32 	and finance and economic development 
8.33 	programs.
9.1 	(e) By June 30, 2010, and June 30, 2011, the 
9.2 	commissioner of finance, in consultation with 
9.3 	the chief information officer, must determine 
9.4 	the savings attributable to implementing the 
9.5 	electronic licensing system in paragraph 
9.6 	(a) and the information technology security 
9.7 	improvements provided for in paragraph (b) 
9.8 	in fiscal year 2010 and 2011, respectively. 
9.9 	The savings are estimated to be $2,551,000 
9.10 	for the biennium. The commissioner must 
9.11 	deposit the amount determined for each year 
9.12 	in the general fund.

9.13	Sec. 11. ADMINISTRATIVE HEARINGS
 	$
	7,823,000
	$
	7,540,000

9.14	Appropriations by Fund
	
9.15		2008
	2009
	
9.16	General
	283,000
	290,000
	
9.17
9.18	Workers' 
Compensation
	7,540,000
	7,250,000

9.19	Sec. 12. ADMINISTRATION

9.20	Subdivision 1.Total Appropriation
 	$
	 36,874,000
	$
	21,723,000
	
9.21 	The amounts that may be spent for each 
9.22 	purpose are specified in the following 
9.23 	subdivisions.

9.24	Subd. 2.State Facilities Services
 		14,496,000
		11,208,000
	
9.25 	(a) $7,888,000 the first year and $7,888,000 
9.26 	the second year are for office space costs of 
9.27 	the legislature and veterans organizations, 
9.28 	for ceremonial space, and for statutorily free 
9.29 	space.
9.30 	(b) $2,500,000 the first year is to purchase 
9.31 	and implement a Web-enabled, shared 
9.32 	computer system to facilitate the state's real 
9.33 	property portfolio management. 
10.1 	By June 30, 2010, and June 30, 2011, the 
10.2 	commissioner of finance, in consultation 
10.3 	with the commissioner of administration, 
10.4 	must determine the savings attributable to 
10.5 	implementing the real property portfolio 
10.6 	management system in fiscal year 2010 
10.7 	and 2011, respectively. The savings are 
10.8 	estimated to be $412,000 for the biennium. 
10.9 	The commissioner must deposit the amount 
10.10 	determined for each year in the general fund.
10.11 	(c) $885,000 the first year is for onetime 
10.12 	funding of agency relocation expenses for 
10.13 	the Department of Public Safety.

10.14	Subd. 3.State and Community Services
 		 3,235,000
		3,342,000
	
10.15 	(a) $60,000 the first year and $240,000 the 
10.16 	second year are to fund activities to prepare 
10.17 	for and promote the 2010 census. Base 
10.18 	funding for this activity is $260,000 in fiscal 
10.19 	year 2010 and $180,000 in fiscal year 2011.
10.20 	(b) $889,000 the first year and $895,000 the 
10.21 	second year are for the Land Management 
10.22 	Information Center.
10.23 	(c) $196,000 the first year and $196,000 the 
10.24 	second year are for the Office of the State 
10.25 	Archaeologist.
10.26 	(d) $79,000 the first year is for the genetic 
10.27 	information work group and report. This 
10.28 	appropriation is available until June 30, 2009.

10.29	Subd. 4.Administrative Management Services
 		 5,672,000
		5,218,000
	
10.30 	(a) $125,000 the first year is to create an 
10.31 	Office of Grants Management to standardize 
10.32 	state grants management policies and 
10.33 	procedures. For the fiscal year beginning 
10.34 	July 1, 2008, the commissioner must 
11.1 	deduct up to $125,000 from state grants 
11.2 	to nongovernmental entities, as necessary 
11.3 	to fund the commissioner's duties under 
11.4 	new Minnesota Statutes, sections 16B.97 
11.5 	and 16B.98. The amount deducted from 
11.6 	appropriations for these grants is transferred 
11.7 	to the commissioner for purposes of 
11.8 	administering these sections.
11.9 	(b) $250,000 the first year and $250,000 
11.10 	the second year are to establish a small 
11.11 	agency resource team to consolidate and 
11.12 	streamline the human resources and financial 
11.13 	management activities for small state 
11.14 	agencies, boards, and councils.
11.15 	(c) $500,000 the first year is a onetime 
11.16 	appropriation for a targeted group business 
11.17 	disparity study. The commissioner 
11.18 	must cooperate with units of local 
11.19 	government conducting similar studies. The 
11.20 	commissioner shall ensure that the results of 
11.21 	the study are kept current and that any new or 
11.22 	upgraded accounting or procurement systems 
11.23 	properly record purchases from minority and 
11.24 	female-owned businesses through the use of 
11.25 	state contracts, and the availability of bids 
11.26 	from those businesses.
11.27 	(d) $74,000 the first year and $74,000 
11.28 	the second year are for the Council on 
11.29 	Developmental Disabilities.
11.30 	(e) $140,000 in fiscal year 2008 and $140,000 
11.31 	in fiscal year 2009 are for a grant to the 
11.32 	Council on Developmental Disabilities 
11.33 	for the purpose of establishing a statewide 
11.34 	self-advocacy network for persons with 
12.1 	intellectual and developmental disabilities 
12.2 	(ID/DD). The self-advocacy network shall:
12.3 	(1) ensure that persons with ID/DD are 
12.4 	informed of their rights in employment, 
12.5 	housing, transportation, voting, government 
12.6 	policy, and other issues pertinent to the 
12.7 	ID/DD community;
12.8 	(2) provide public education and awareness 
12.9 	of the civil and human rights issues persons 
12.10 	with ID/DD face;
12.11 	(3) provide funds, technical assistance, and 
12.12 	other resources for self-advocacy groups 
12.13 	across the state; and
12.14 	(4) organize systems of communications 
12.15 	to facilitate an exchange of information 
12.16 	between self-advocacy groups.
12.17 	This appropriation is in addition to any other 
12.18 	appropriations and must be added to the base 
12.19 	appropriation beginning in fiscal year 2010.

12.20	Subd. 5.Fiscal Agent
 		500,000
			
12.21 	$500,000 is for a grant to Washington 
12.22 	County for capital improvements detailed 
12.23 	in the approved planned unit development 
12.24 	for the Disabled Veteran's Rest Camp to 
12.25 	provide increased capacity, amenities, access, 
12.26 	and safety for Minnesota veterans. This 
12.27 	appropriation is available until spent.

12.28	Subd. 6.Public Broadcasting
 		 12,971,000
		1,955,000
	
12.29 	(a) $6,650,000 is for grants to noncommercial 
12.30 	television stations to assist with the continued 
12.31 	conversion to a digital broadcast signal as 
12.32 	mandated by the federal government. This 
12.33 	appropriation must be used to assist each 
12.34 	station to complete its digital production 
13.1 	facilities and interconnect with other 
13.2 	Minnesota public television stations. In 
13.3 	order to qualify for these grants, a station 
13.4 	must meet the criteria established for grants 
13.5 	in Minnesota Statutes, section 129D.12, 
13.6 	subdivision 2.
13.7 	(b) $2,000,000 is for grants to Minnesota 
13.8 	Public Radio to assist with conversion to a 
13.9 	digital broadcast signal.
13.10 	(c) $2,461,000 the first year and $1,161,000 
13.11 	the second year are for matching grants for 
13.12 	public television.
13.13 	(d) $200,000 the first year and $200,000 
13.14 	the second year are for public television 
13.15 	equipment grants. Equipment or matching 
13.16 	grant allocations shall be made after 
13.17 	considering the recommendations of the 
13.18 	Minnesota Public Television Association.
13.19 	(e) $17,000 the first year and $17,000 the 
13.20 	second year are for grants to the Twin Cities 
13.21 	regional cable channel.
13.22 	(f) $413,000 in fiscal year 2008 and $287,000 
13.23 	in fiscal year 2009 are for community service 
13.24 	grants to public educational radio stations.
13.25 	(g) $400,000 in fiscal year 2008 and $100,000 
13.26 	in fiscal year 2009 are for equipment grants 
13.27 	to public educational radio stations.
13.28 	(h) The grants in paragraphs (f) and (g) 
13.29 	must be allocated after considering the 
13.30 	recommendations of the Association of 
13.31 	Minnesota Public Educational Radio Stations 
13.32 	under Minnesota Statutes, section 129D.14.
14.1 	(i) $830,000 the first year and $190,000 
14.2 	the second year are for equipment grants to 
14.3 	Minnesota Public Radio, Inc.
14.4 	(j) Any unencumbered balance remaining the 
14.5 	first year for grants to public television or 
14.6 	radio stations does not cancel and is available 
14.7 	for the second year.

14.8
14.914.10
	Sec. 13. CAPITOL AREA 
ARCHITECTURAL AND PLANNING 
BOARD
 	$
	427,000
	$
	373,000
	
14.11 	$65,000 in fiscal year 2008 is for the 
14.12 	decennial expenses related to the board's 
14.13 	duties under Minnesota Statutes, section 
14.14 	473.864, subdivisions 1 and 2. Money 
14.15 	appropriated in fiscal year 2008 is available 
14.16 	until June 30, 2009. This is a onetime 
14.17 	appropriation.

14.18	Sec. 14. FINANCE

14.19	Subdivision 1.Total Appropriation
 	$
	 15,796,000
	$
	15,596,000
	
14.20 	The amounts that may be spent for each 
14.21 	purpose are specified in the following 
14.22 	subdivisions.

14.23	Subd. 2.State Financial Management
 		 8,773,000
		8,905,000
	
14.24 	$100,000 the first year is for the state's 
14.25 	share of the cost of bankruptcy counsel 
14.26 	representing joint interests of the state and 
14.27 	the city of Duluth in the Northwest Airlines 
14.28 	bankruptcy. This is a onetime appropriation.

14.29
14.30	Subd. 3.Information and Management 
Services
 		 7,023,000
		6,691,000
	
14.31 	$500,000 the first year is for costs related to 
14.32 	the Minnesota Accounting and Procurement 
14.33 	System (MAPS).

15.1	Sec. 15. EMPLOYEE RELATIONS
 	$
	 5,545,000
	$
	5,589,000

15.2	Sec. 16. REVENUE

15.3	Subdivision 1.Total Appropriation
 	$
	 129,420,000
	$
	123,224,000

15.4	Appropriations by Fund
	
15.5		2008
	2009
	
15.6	General
	 125,291,000
	119,004,000
	
15.7	Health Care Access
	1,693,000
	1,734,000
	
15.8
15.9	Highway User Tax 
Distribution
	2,139,000
	2,183,000
	
15.10	Environmental
	297,000
	303,000
	
15.11 	The amounts that may be spent for each 
15.12 	purpose are specified in subdivisions 2 and 3.

15.13	Subd. 2.Tax System Management
 		 109,098,000
		101,045,000

15.14	Appropriations by Fund
	
15.15	General
	 104,969,000
	96,825,000
	
15.16	Health Care Access
	1,693,000
	1,734,000
	
15.17
15.18	Highway User Tax 
Distribution
	2,139,000
	2,183,000
	
15.19	Environmental
	297,000
	303,000
	
15.20 	(a) $6,910,000 the first year and $8,704,000 
15.21 	the second year are for additional activities 
15.22 	to identify and collect tax liabilities from 
15.23 	individuals and businesses that currently 
15.24 	do not pay all taxes owed. This initiative 
15.25 	is expected to result in new general fund 
15.26 	revenues of $42,400,000 for the biennium 
15.27 	ending June 30, 2009.
15.28 	(b) The department must report to the chairs 
15.29 	of the house of representatives Ways and 
15.30 	Means and senate Finance Committees by 
15.31 	March 1, 2008, and January 15, 2009, on the 
15.32 	following performance indicators:
15.33 	(1) the number of corporations noncompliant 
15.34 	with the corporate tax system each year and 
16.1 	the percentage and dollar amounts of valid 
16.2 	tax liabilities collected;
16.3 	(2) the number of businesses noncompliant 
16.4 	with the sales and use tax system and the 
16.5 	percentage and dollar amount of the valid tax 
16.6 	liabilities collected; and
16.7 	(3) the number of individual noncompliant 
16.8 	cases resolved and the percentage and dollar 
16.9 	amounts of valid tax liabilities collected.
16.10 	(c) The reports must also identify base-level 
16.11 	expenditures and staff positions related to 
16.12 	compliance and audit activities, including 
16.13 	baseline information as of January 1, 2006. 
16.14 	The information must be provided at the 
16.15 	budget activity level.
16.16 	(d) $12,000,000 the first year is for the 
16.17 	purchase and development of an integrated 
16.18 	tax software package.
16.19 	By June 30, 2010, and June 30, 2011, the 
16.20 	commissioner of finance, in consultation with 
16.21 	the commissioner of revenue, must determine 
16.22 	the savings attributable to implementing the 
16.23 	integrated tax software package in fiscal year 
16.24 	2010 and 2011, respectively. The savings are 
16.25 	estimated to be $1,975,000 for the biennium. 
16.26 	The commissioner must deposit the amount 
16.27 	determined for each year in the general fund.
16.28 	(e) $75,000 the first year and $75,000 the 
16.29 	second year are for grants to one or more 
16.30 	nonprofit organizations, qualifying under 
16.31 	section 501(c)(3) of the Internal Revenue 
16.32 	Code of 1986, to coordinate, facilitate, 
16.33 	encourage, and aid in the provision of 
16.34 	taxpayer assistance services. For purposes 
16.35 	of this paragraph, "taxpayer assistance 
17.1 	services" means accounting and tax 
17.2 	preparation services provided by volunteers 
17.3 	to low-income and disadvantaged Minnesota 
17.4 	residents to help them file federal and 
17.5 	state income tax returns and Minnesota 
17.6 	property tax refund claims and may include 
17.7 	providing personal representation before 
17.8 	the Department of Revenue and Internal 
17.9 	Revenue Service.

17.10	Subd. 3.Accounts Receivable Management
 		20,322,000
		22,179,000
	
17.11 	$1,750,000 the first year and $3,110,000 
17.12 	the second year are for additional activities 
17.13 	to identify and collect tax liabilities from 
17.14 	individuals and businesses that currently 
17.15 	do not pay all taxes owed. This initiative 
17.16 	is expected to result in new general fund 
17.17 	revenues of $60,000,000 for the biennium 
17.18 	ending June 30, 2009.

17.19	Sec. 17. GAMBLING CONTROL
 	$
	2,869,000
	$
	2,940,000
	
17.20 	These appropriations are from the lawful 
17.21 	gambling regulation account in the special 
17.22 	revenue fund.

17.23	Sec. 18. RACING COMMISSION
 	$
	1,130,000
	$
	899,000
	
17.24 	(a) These appropriations are from racing 
17.25 	and card playing regulation accounts in the 
17.26 	special revenue fund.
17.27 	(b) $295,000 the first year and $64,000 the 
17.28 	second year and thereafter are for information 
17.29 	technology improvements implemented in 
17.30 	consultation with the Office of Enterprise 
17.31 	Technology as part of the small agency 
17.32 	technology initiative.

18.1	Sec. 19. STATE LOTTERY
 					
18.2 	Notwithstanding Minnesota Statutes, section 
18.3 	349A.10, subdivision 3, the operating budget 
18.4 	must not exceed $27,378,000 in fiscal year 
18.5 	2008 and $28,141,000 in fiscal year 2009.

18.6	Sec. 20. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
18.7 	To be spent by the commissioner of finance. 
18.8 	If the appropriation for either year is 
18.9 	insufficient, the appropriation for the other 
18.10 	year is available for it.

18.11
18.12	Sec. 21. MINNESOTA STATE RETIREMENT 
SYSTEM

18.13	Subdivision 1.Total Appropriation
 	$
	1,608,000
	$
	1,649,000
	
18.14 	The amounts that may be spent for each 
18.15 	purpose are specified in the following 
18.16 	subdivisions.

18.17	Subd. 2.Legislators
 		1,170,000
		1,200,000
	
18.18 	Under Minnesota Statutes, sections 3A.03, 
18.19 	subdivision 2; 3A.04, subdivisions 3 and 4; 
18.20 	and 3A.115.

18.21	Subd. 3. Constitutional Officers
 		438,000 
		449,000
	
18.22 	Under Minnesota Statutes, section 352C.001.
18.23 	If an appropriation in this section for either 
18.24 	year is insufficient, the appropriation for the 
18.25 	other year is available for it.

18.26
18.27	Sec. 22. MINNEAPOLIS EMPLOYEES 
RETIREMENT FUND
 	$
	 9,000,000
	$
	 9,000,000
	
18.28 	These amounts are estimated to be needed 
18.29 	under Minnesota Statutes, section 422A.101, 
18.30 	subdivision 3.

18.31
18.32	Sec. 23. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	15,800,000
	$
	15,800,000
	
19.1 	The amounts estimated to be needed are as 
19.2 	follows:

19.3
19.4
19.5	(a) Special direct state aid authorized under 
Minnesota Statutes, section 354A.12, subdivisions 
3a and 3c.
		13,300,000
		13,300,000

19.6
19.7
19.8	(b) Special direct state matching aid authorized 
under Minnesota Statutes, section 354A.12, 
subdivision 3b.
		2,500,000
		2,500,000

19.919.10
	Sec. 24. ST. PAUL TEACHERS 
RETIREMENT FUND
 	$
	2,967,000
	$
	2,967,000
	
19.11 	The amounts estimated to be needed for 
19.12 	special direct state aid to first class city 
19.13 	teachers retirement funds authorized under 
19.14 	Minnesota Statutes, section 354A.12, 
19.15 	subdivisions 3a and 3c.

19.16	Sec. 25. AMATEUR SPORTS COMMISSION
 	$
	 303,000
	$
	305,000
	
19.17 	(a) The base budget for the Amateur Sports 
19.18 	Commission shall be $220,000 in fiscal year 
19.19 	2010 and $220,000 in fiscal year 2011.
19.20 	(b) The amount available for appropriation 
19.21 	to the commission under Laws 2005, chapter 
19.22 	156, article 2, section 43, is reduced in the 
19.23 	first year and the second year by the amounts 
19.24 	appropriated in this section.

19.25
19.26	Sec. 26. COUNCIL ON BLACK 
MINNESOTANS
 	$
	325,000
	$
	333,000

19.27
19.28	Sec. 27. COUNCIL ON CHICANO/LATINO 
AFFAIRS
 	$
	308,000
	$
	314,000

19.29
19.30	Sec. 28. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	289,000
	$
	289,000

19.31	Sec. 29. INDIAN AFFAIRS COUNCIL
 	$
	 654,000
	$
	493,000
	
19.32 	(a) $80,000 in the first year is for the 
19.33 	acquisition of an Indian burial site in 
20.1 	Becker County. The Indian Affairs Council 
20.2 	shall solicit donations from federal, state, 
20.3 	nonprofit, private, and tribal sources for this 
20.4 	purpose. This is a onetime appropriation and 
20.5 	is available for expenditure until June 30, 
20.6 	2009.
20.7 	(b) $90,000 in the first year is for transfer to 
20.8 	the director of the Minnesota Office of Higher 
20.9 	Education for a grant for the Dakota/Ojibwe 
20.10 	Language Revitalization Project to expand 
20.11 	an existing pilot project to promote activities 
20.12 	and programs that are specific to promoting 
20.13 	revitalization of indigenous language for 
20.14 	American Indian children who do not live 
20.15 	on an Indian reservation. The pilot project 
20.16 	shall focus on developing programs that 
20.17 	meet the language needs of children in 
20.18 	prekindergarten through grade 12. This is a 
20.19 	onetime appropriation.

20.20
20.21	Sec. 30. GENERAL CONTINGENT 
ACCOUNTS
 	$
	1,000,000
	$
	500,000

20.22	Appropriations by Fund
	
20.23		2008
	2009
	
20.24	General
	500,000
	-0-
	
20.25
20.26	State Government 
Special Revenue
	400,000
	400,000
	
20.27
20.28	Workers' 
Compensation
	100,000
	100,000
	
20.29 	(a) The appropriations in this section 
20.30 	may only be spent with the approval of 
20.31 	the governor after consultation with the 
20.32 	Legislative Advisory Commission pursuant 
20.33 	to Minnesota Statutes, section 3.30.
20.34 	(b) If an appropriation in this section for 
20.35 	either year is insufficient, the appropriation 
20.36 	for the other year is available for it.
21.1 	(c) If a contingent account appropriation 
21.2 	is made in one fiscal year, it should be 
21.3 	considered a biennial appropriation.

21.4 	Sec. 31. CARRYFORWARD AUTHORIZATION FOR TECHNOLOGY.
 21.5 	With the approval of the commissioner of finance, agencies may carry forward up to 
21.6 	$5,756,000 of unexpended and unencumbered nongrant operating balances from fiscal 
21.7 	year 2007 to fiscal year 2008. Money carried forward under this section must be deposited 
21.8 	in accounts in the special revenue fund. Money in the accounts created under this section 
21.9 	is appropriated to the commissioner of finance in fiscal year 2008 for onetime costs 
21.10 	associated with technology infrastructure and technology systems development projects. 
21.11 	The commissioner of finance must report to the legislative committees with jurisdiction 
21.12 	over finance regarding the use of the authority provided in this section, including a report 
21.13 	on July 15, 2007, regarding the money carried forward under this section and a report on 
21.14 	July 15, 2008, and July 15, 2009, regarding the uses of the money.

21.15 	Sec. 32. BALANCE CARRIED FORWARD.
 21.16 	Notwithstanding Minnesota Statutes, section 16A.1522, subdivision 4, any positive 
21.17 	unrestricted general fund budgetary balance as of June 30, 2007, is carried forward to the 
21.18 	fiscal year ending June 30, 2008.

21.19 	ARTICLE 2
21.20 	STATE GOVERNMENT OPERATIONS

21.21 	Section 1. Minnesota Statutes 2006, section 3.303, is amended by adding a subdivision 
21.22 	to read:
21.23 		Subd. 8.Ethnic heritage and new Americans. The commission shall undertake 
21.24 	activities it determines are necessary to assist state government to foster an understanding 
21.25 	and appreciation of ethnic and cultural diversity in Minnesota, to identify underutilized 
21.26 	resources within the immigrant community, and to facilitate the full participation of 
21.27 	immigrants in social, cultural, and political life in this state. The commission may 
21.28 	appoint a working group under section 3.305, subdivision 6, to assist the commission in 
21.29 	these duties. A working group under this subdivision may include legislators and public 
21.30 	members. The commission may provide compensation for public members as provided 
21.31 	in section 15.0575. In performing duties under this subdivision, the commission shall 
21.32 	collaborate with the councils established in sections 3.9223, 3.9225, and 3.9226. This 
21.33 	subdivision expires June 30, 2009.

22.1 	Sec. 2. Minnesota Statutes 2006, section 3.303, is amended by adding a subdivision to 
22.2 	read:
22.3 		Subd. 9.Preparedness for terrorism and disasters. The commission shall 
22.4 	undertake activities it determines are necessary to advise the legislature and oversee 
22.5 	executive activities on issues related to homeland security, emergency management, 
22.6 	man-made and natural disasters, terrorism, bioterrorism, public health emergencies, and 
22.7 	vulnerabilities in public and private infrastructures. The commission may appoint a 
22.8 	working group under section 3.305, subdivision 6, to assist the commission in these duties. 
22.9 	A working group under this subdivision may include legislators and public members. 
22.10 	The commission may provide compensation for public members as provided in section 
22.11 	15.0575. This subdivision expires June 30, 2011.

22.12 	Sec. 3. Minnesota Statutes 2006, section 4.035, subdivision 3, is amended to read:
22.13 		Subd. 3.Expiration date. Unless an earlier date is specified by statute or by 
22.14 	executive order, an executive order shall expire 90 days after the date that the governor 
22.15 	who issued the order vacates leaves office.

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

22.17 	Sec. 4. [4.60] POET LAUREATE.
22.18 	(a) The position of poet laureate of the state of Minnesota is established. The 
22.19 	Minnesota Humanities Commission must solicit nominations for the poet laureate 
22.20 	appointment and must make recommendations to the governor. After receiving 
22.21 	recommendations from the Minnesota Humanities Commission, the governor shall 
22.22 	appoint a state poet laureate and conduct appropriate ceremonies to honor the person 
22.23 	appointed. The person appointed as poet laureate continues to serve in this position until 
22.24 	the governor appoints another person.
22.25 	(b) State agencies and officers are encouraged to use the services of the poet laureate 
22.26 	for appropriate ceremonies and celebrations.

22.27 	Sec. 5. Minnesota Statutes 2006, section 5.12, subdivision 1, is amended to read:
22.28 		Subdivision 1.Fees. The secretary of state shall charge a fee of $5 for each 
22.29 	certificate or certification of a copy of any document filed in the Office of the Secretary 
22.30 	of State. The secretary of state shall charge a fee of $3 for a copy of an original filing of 
22.31 	a corporation, limited partnership, assumed name, or trade or service mark, or for the 
22.32 	complete record of a certificate of assumed name. The secretary of state shall charge a 
22.33 	fee of $3 for a copy of any or all subsequent filings of a corporation, limited partnership, 
23.1 	assumed name, or trade or service mark. The secretary of state shall charge a fee of $1 per 
23.2 	page for copies of other nonuniform commercial code documents filed with the secretary of 
23.3 	state. At the time of filing, the secretary of state may provide at the public counter, without 
23.4 	charge, a copy of a filing, ten or fewer pages in length, to the person making the filing.

23.5 	Sec. 6. [5.32] TEMPORARY TECHNOLOGY SURCHARGE.
23.6 		Subdivision 1.Surcharge. For fiscal years 2008 and 2009, the following technology 
23.7 	surcharges are imposed on the filing fees required under the following statutes:
23.8 	(1) $25 for articles of incorporation filed under section 302A.151;
23.9 	(2) $25 for articles of organization filed under section 322B.17;
23.10 	(3) $25 for applications for certificates of authority to transact business in Minnesota 
23.11 	filed under section 303.06;
23.12 	(4) $20 for annual reports filed by non-Minnesota corporations under section 
23.13 	303.14; and 
23.14 	(5) $50 for reinstatements to authority to transact business in Minnesota filed under 
23.15 	section 303.19.
23.16 		Subd. 2.Deposit. The surcharges listed in subdivision 1 shall be deposited into the 
23.17 	uniform commercial code account.
23.18 		Subd. 3.Expiration. This section expires June 30, 2009.

23.19 	Sec. 7. [11A.27] REPORT ON INVESTMENT CONSULTANT ACTIVITIES 
23.20 	AND DELIVERABLES.
23.21 	(a) Annually, on or before November 1, the State Board of Investment shall file a 
23.22 	report with the Legislative Reference Library on the activities and work product during 
23.23 	that year of any investment consultants retained by the board.
23.24 	(b) The report must include the following items:
23.25 	(1) the total contract fee paid to each investment consultant;
23.26 	(2) a listing of the projects in which the investment consultant was involved; and
23.27 	(3) examples of the written work product provided by the investment consultant on 
23.28 	those projects during the report coverage period.

23.29 	EFFECTIVE DATE. This section is effective June 30, 2007.

23.30 	Sec. 8. [13.595] GRANTS.
23.31 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
23.32 	the meanings given them.
24.1 	(a) "Completion of the evaluation process" means that the granting agency has 
24.2 	completed negotiating the grant agreement with the selected grantee.
24.3 	(b) "Grant agreement"  has the meaning given in section 16B.97, subdivision 1.
24.4 	(c) "Grantee" means a person that applies for or receives a grant.
24.5 	(d) "Granting agency" means the state agency that provides the grant.
24.6 	(e) "Opened" means the act that occurs once the deadline for submitting a response 
24.7 	to a proposal to the granting agency has been reached.
24.8 	(f) "Request for proposal" means the data outlining the responsibilities the granting 
24.9 	agency wants the grantee to assume.
24.10 	(g) "Response" means the data submitted by a grantee as required by a request for 
24.11 	proposal.
24.12 		Subd. 2.Request for applications. Data created by a granting agency to create a 
24.13 	request for proposal is classified as nonpublic until the request for proposal is published. 
24.14 	To the extent that a granting agency involves persons outside the granting agency to create 
24.15 	the request for proposal, the data remain nonpublic in the hands of all persons who may 
24.16 	not further disseminate any data that are created or reviewed as part of the request for 
24.17 	proposal development. At publication, the data in the request for proposal is public.
24.18 		Subd. 3.Responses to request for proposals. (a) Responses submitted by a grantee 
24.19 	are private or nonpublic until the responses are opened. Once the responses are opened, 
24.20 	the name and address of the grantee and the amount requested is public. All other data in a 
24.21 	response is private or nonpublic data until completion of the evaluation process. After a 
24.22 	granting agency has completed the evaluation process, all remaining data in the responses 
24.23 	is public with the exception of trade secret data as defined and classified in section 13.37. 
24.24 	A statement by a grantee that the response is copyrighted or otherwise protected does 
24.25 	not prevent public access to the response.
24.26 	(b) If all responses are rejected prior to completion of the evaluation process, 
24.27 	all data, other than that made public at the opening, remain private or nonpublic 
24.28 	until a resolicitation of proposals results in completion of the evaluation process or a 
24.29 	determination is made to abandon the grant. If the rejection occurs after the completion of 
24.30 	the evaluation process, the data remain public. If a resolicitation of proposals does not 
24.31 	occur within one year of the grant opening date, the remaining data become public.
24.32 		Subd. 4.Evaluation data. (a) Data created or maintained by a granting agency as 
24.33 	part of the evaluation process referred to in this section are protected nonpublic data until 
24.34 	completion of the evaluation process at which time the data are public with the exception 
24.35 	of trade secret data as defined and classified in section 13.37.
25.1 	(b) If a granting agency asks individuals outside the granting agency to assist with 
25.2 	the evaluation of the responses, the granting agency may share not public data in the 
25.3 	responses with those individuals. The individuals participating in the evaluation may not 
25.4 	further disseminate the not public data they review.

25.5 	Sec. 9. Minnesota Statutes 2006, section 15.06, subdivision 2, is amended to read:
25.6 		Subd. 2.Term of office; successor. The term of a commissioner shall end with the 
25.7 	term of the office of governor. If the appointing authority is the governor In addition, the 
25.8 	term shall end on the date the governor who appointed the commissioner if the governor
25.9 	vacates office. The appointing authority shall submit to the president of the senate 
25.10 	the name of an appointee as permanent commissioner as provided by section 15.066, 
25.11 	subdivision 2, within 45 legislative days after the end of the term of a commissioner 
25.12 	and within 45 legislative days after the occurrence of a vacancy. The appointee shall 
25.13 	take office as permanent commissioner when the senate notifies the appointing authority 
25.14 	that it has consented to the appointment. A commissioner shall serve at the pleasure of 
25.15 	the appointing authority. 

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

25.17 	Sec. 10. Minnesota Statutes 2006, section 15B.17, subdivision 1, is amended to read:
25.18 		Subdivision 1.Proposals. (a) Before a state agency or other public body develops, 
25.19 	to submit to the legislature and the governor, a budget proposal or plans for capital 
25.20 	improvements within the Capitol Area to submit to the legislature and the governor, 
25.21 	it must consult with the board.
25.22 	(b) The public body must provide enough money for the board's review and planning 
25.23 	if the board decides its review and planning services are necessary. Money received by the 
25.24 	board under this subdivision is deposited in the special revenue fund and appropriated to 
25.25 	the board.

25.26 	Sec. 11. Minnesota Statutes 2006, section 16A.102, subdivision 4, is amended to read:
25.27 		Subd. 4.Reporting information. When updated information is available At 
25.28 	the time of a state revenue and expenditure forecast as specified in section 16A.103, 
25.29 	subdivision 1, and after the completion of a legislative session, the Department of Finance 
25.30 	must report on revenue relative to personal income as specified in subdivision 1. The 
25.31 	information must specify (1) the share of personal income to be collected in taxes and 
25.32 	other revenues to pay for state and local government services and (2) the division of that 
25.33 	revenue between state and local government revenues.

26.1 	Sec. 12. Minnesota Statutes 2006, section 16A.103, subdivision 1e, is amended to read:
26.2 		Subd. 1e.Economic information. The commissioner must review economic 
26.3 	information including economic forecasts with legislative fiscal staff no later than two 
26.4 	weeks before the forecast is released. The commissioner must invite the chairs and lead 
26.5 	minority members of the senate State Government Finance Committee and the house 
26.6 	Ways and Means Committee, and legislative fiscal staff to attend any meetings held with 
26.7 	outside economic advisors. The commissioner must provide legislative fiscal staff with 
26.8 	monthly economic forecast information received from outside sources.

26.9 	Sec. 13. Minnesota Statutes 2006, section 16A.1286, subdivision 2, is amended to read:
26.10 		Subd. 2.Billing procedures. The commissioner may bill up to $7,520,000 in 
26.11 	each fiscal year for statewide systems services provided to state agencies, judicial branch 
26.12 	agencies, the University of Minnesota, the Minnesota State Colleges and Universities, 
26.13 	and other entities. Billing must be based only on usage of services relating to statewide 
26.14 	systems provided by the Intertechnologies Division. Each agency shall transfer from 
26.15 	agency operating appropriations to the statewide systems account the amount billed by 
26.16 	the commissioner. Billing policies and procedures related to statewide systems services 
26.17 	must be developed by the commissioner in consultation with the commissioners of 
26.18 	employee relations and administration, the University of Minnesota, and the Minnesota 
26.19 	State Colleges and Universities.

26.20 	Sec. 14. Minnesota Statutes 2006, section 16A.695, subdivision 2, is amended to read:
26.21 		Subd. 2.Leases and management contracts. (a) A public officer or agency that 
26.22 	is authorized by law to lease or enter into a management contract with respect to state 
26.23 	bond financed property shall comply with this subdivision. A reference to a lease or 
26.24 	management contract in this subdivision includes any amendments, modifications, or 
26.25 	alterations to the referenced lease or management contract and refers to the lease wherein 
26.26 	the public officer or agency is the lessor of the state bond financed property and the other 
26.27 	contracting party is the lessee.
26.28 	(b) The lease or management contract may be entered into for the express purpose of 
26.29 	carrying out a governmental program established or authorized by law and established by 
26.30 	official action of the contracting public officer or agency, in accordance with orders of the 
26.31 	commissioner intended to ensure the legality and tax-exempt status of bonds issued to 
26.32 	finance the property, and with the approval of the commissioner. A lease or management 
26.33 	contract, including any renewals that are solely at the option of the lessee, must be for a 
26.34 	term substantially less than the useful life of the property, but may allow renewal beyond 
27.1 	that term upon a determination by the lessor that the lessee has demonstrated that the use 
27.2 	continues to carry out the governmental program. If the lessor and lessee do not renew the 
27.3 	lease or management contract and if the lessee has contributed to the land and the capital 
27.4 	improvements on the state bond financed property, the lessor may agree to reimburse the 
27.5 	lessee for its investment in the land and capital improvements. The reimbursement may be 
27.6 	paid, at the option of the lessor and lessee, at the time of nonrenewal without a requirement 
27.7 	for a prior escrow of funds or at a later date and on additional terms agreed to by the lessor 
27.8 	and the lessee. A lease or management contract must be terminable by the contracting 
27.9 	public officer or agency if the other contracting party defaults under the contract or if the 
27.10 	governmental program is terminated or changed, and must provide for program oversight 
27.11 	by the contracting public officer or agency. The expiration or termination of a lease or 
27.12 	management agreement does not require that the state bond proceeds be repaid or that 
27.13 	the property be sold, so long as the property continues to be operated by, or on behalf of, 
27.14 	the public officer or agency for the intended governmental program. Money received by 
27.15 	the public officer or agency under the lease or management contract that is not needed 
27.16 	to pay and not authorized to be used to pay operating costs of the property, or to pay the 
27.17 	principal, interest, redemption premiums, and other expenses when due on debt related to 
27.18 	the property other than state bonds, must be:
27.19 	(1) paid to the commissioner in the same proportion as the state bond financing is 
27.20 	to the total public debt financing for the property, excluding debt issued by a unit of 
27.21 	government for which it has no financial liability;
27.22 	(2) deposited in the state bond fund; and
27.23 	(3) used to pay or redeem or defease bonds issued to finance the property in 
27.24 	accordance with the commissioner's order authorizing their issuance.
27.25 	The money paid to the commissioner is appropriated for this purpose.
27.26 	(c) With the approval of the commissioner, a lease or management contract between 
27.27 	a city and a nonprofit corporation under section 471.191, subdivision 1, need not require 
27.28 	the lessee to pay rentals sufficient to pay the principal, interest, redemption premiums, 
27.29 	and other expenses when due with respect to state bonds issued to acquire and better 
27.30 	the facilities. 

27.31 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2006, 
27.32 	and applies to leases, grant agreements, or management agreements entered into on or 
27.33 	after that date.

27.34 	Sec. 15. Minnesota Statutes 2006, section 16A.695, subdivision 3, is amended to read:
28.1 		Subd. 3.Sale of property. A public officer or agency shall not sell any state bond 
28.2 	financed property unless the public officer or agency determines by official action that 
28.3 	the property is no longer usable or needed by the public officer or agency to carry out 
28.4 	the governmental program for which it was acquired or constructed, the sale is made as 
28.5 	authorized by law, the sale is made for fair market value, and the sale is approved by the 
28.6 	commissioner. If any state bonds issued to purchase or better the state bond financed 
28.7 	property that is sold remain outstanding on the date of sale, the net proceeds of sale must 
28.8 	be applied as follows:
28.9 	(1) if the state bond financed property was acquired and bettered solely with state 
28.10 	bond proceeds, the net proceeds of sale must be paid to the commissioner,and deposited 
28.11 	in the state bond fund, and used to pay or redeem or defease the outstanding state bonds in 
28.12 	accordance with the commissioner's order authorizing their issuance, and the proceeds are 
28.13 	appropriated for this purpose treasury; or
28.14 	(2) if the state bond financed property was acquired or bettered partly with state 
28.15 	bond proceeds and partly with other money, the net proceeds of sale must be used: first, to 
28.16 	pay to the state the amount of state bond proceeds used to acquire or better the property; 
28.17 	second, to pay in full any outstanding public or private debt incurred to acquire or better 
28.18 	the property; and third, to pay interested public and private entities, other than any 
28.19 	public officer or agency or any private lender already paid in full, the amount of money 
28.20 	contributed to the acquisition or betterment of the property; and fourth, any excess over the 
28.21 	amount needed for those purposes must be divided in proportion to the shares contributed 
28.22 	to the acquisition or betterment of the property and paid to the interested public and 
28.23 	private entities, other than any private lender already paid in full, and the proceeds are 
28.24 	appropriated for this purpose. In calculating the share contributed by each entity, the 
28.25 	amount to be attributed to the owner of the property shall be the fair market value of the 
28.26 	property that was bettered by state bond proceeds at the time the betterment began.
28.27 	When all of the net proceeds of sale have been applied as provided in this 
28.28 	subdivision, this section no longer applies to the property.

28.29 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2006, 
28.30 	and applies to leases, grant agreements, or management agreements entered into on or 
28.31 	after that date.

28.32 	Sec. 16. Minnesota Statutes 2006, section 16A.695, is amended by adding a 
28.33 	subdivision to read:
28.34 		Subd. 6.Match requirements. Recipients of grants from money appropriated 
28.35 	from the bond proceeds fund may be required to demonstrate a commitment of money 
29.1 	from nonstate sources. This matching money may be pledged payments that have been 
29.2 	deposited into a segregated account or multiyear pledges that are converted into cash or 
29.3 	cash equivalent through a loan or irrevocable letter of credit from a financial institution. 
29.4 	The loan or irrevocable letter of credit may be secured by a lien on the state bond financed 
29.5 	property.

29.6 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2006, 
29.7 	and applies to leases, grant agreements, or management agreements entered into on or 
29.8 	after that date.

29.9 	Sec. 17. Minnesota Statutes 2006, section 16A.695, is amended by adding a 
29.10 	subdivision to read:
29.11 		Subd. 7.Ground lease for state bond financed property. A public officer or 
29.12 	agency, as lessee, may lease real property and improvements that are to be acquired or 
29.13 	improved with state bond proceeds. The lease must be for a term equal to or longer than 
29.14 	125 percent of the useful life of the property. The expiration of the lease upon the end of 
29.15 	its term does not require that the state be repaid or that the property be sold and upon the 
29.16 	expiration the real property and improvements are no longer state bond financed property.

29.17 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2006, 
29.18 	and applies to leases, grant agreements, or management agreements entered into on or 
29.19 	after that date.

29.20 	Sec. 18. Minnesota Statutes 2006, section 16A.695, is amended by adding a 
29.21 	subdivision to read:
29.22 		Subd. 8.General applicability. (a) This section establishes requirements for 
29.23 	the receipt and use of general obligation grants and the ownership and operation of 
29.24 	state bond-financed property. General obligation grants may only be issued and used to 
29.25 	finance the acquisition and betterment of public lands and buildings and other public 
29.26 	improvements of a capital nature that are used to operate a governmental program, and 
29.27 	for predesign and design activities for specifically identified projects that involve the 
29.28 	operation of a governmental program or activity. A general obligation grant may not be 
29.29 	used for general operating expenses, staffing, or general master planning. A public officer 
29.30 	or agency that is the recipient of a general obligation grant must comply with this section 
29.31 	in its use of the general obligation grant and operation, management, lease, and sale 
29.32 	of state bond-financed property. A public officer or agency that uses the proceeds of a 
29.33 	general obligation grant for any unauthorized purpose or in violation of this section must 
30.1 	immediately repay the outstanding balance of the grant to the commissioner, and a failure 
30.2 	to comply authorizes the commissioner to recover the outstanding balance as a setoff 
30.3 	against any state aid provided to the public officer or agency.
30.4 	(b) This section does not create any new authority regarding the ownership, 
30.5 	construction, rehabilitation, use, operation, lease management, or sale of state 
30.6 	bond-financed property, or the operation of the governmental program that will be 
30.7 	operated on the property. Any authority that is needed to enter into a management contract 
30.8 	or lease of property, to sell property, or to operate a governmental program or carry out 
30.9 	any activity contained in the law that appropriates money for a general obligation grant 
30.10 	must be provided by as contained in some other law.

30.11 	EFFECTIVE DATE. This section is effective on and after July 1, 2007.

30.12 	Sec. 19. Minnesota Statutes 2006, section 16A.695, is amended by adding a 
30.13 	subdivision to read:
30.14 		Subd. 9.Grant agreement. All general obligation grants must be evidenced by 
30.15 	a grant agreement that specifies:
30.16 	(1) how the general obligation grant will be used;
30.17 	(2) the governmental program that will be operated on the state bond-financed 
30.18 	property; and
30.19 	(3) that the state bond-financed property must be operated in compliance with this 
30.20 	section, all state and federal laws, and in a manner that will not cause the interest on the 
30.21 	state general obligation bonds to be or become subject to federal income taxation for any 
30.22 	reason. A grant agreement must comply with this section, the Minnesota Constitution, 
30.23 	and all commissioner's orders, and also contain other provisions the commissioner of the 
30.24 	agency making the grant deems appropriate. The commissioner shall draft and make 
30.25 	available forms for grant agreements that satisfy the requirements of this subdivision.

30.26 	EFFECTIVE DATE. This section is effective on and after July 1, 2007.

30.27 	Sec. 20. Minnesota Statutes 2006, section 16B.24, subdivision 5, is amended to read:
30.28 		Subd. 5.Renting out state property. (a) Authority.  The commissioner may rent 
30.29 	out state property, real or personal, that is not needed for public use, if the rental is not 
30.30 	otherwise provided for or prohibited by law. The property may not be rented out for 
30.31 	more than five years at a time without the approval of the State Executive Council and 
30.32 	may never be rented out for more than 25 years. A rental agreement may provide that 
30.33 	the state will reimburse a tenant for a portion of capital improvements that the tenant 
31.1 	makes to state real property if the state does not permit the tenant to renew the lease at 
31.2 	the end of the rental agreement. 
31.3 	(b)  Restrictions. Paragraph (a) does not apply to state trust fund lands, other state 
31.4 	lands under the jurisdiction of the Department of Natural Resources, lands forfeited for 
31.5 	delinquent taxes, lands acquired under section 298.22, or lands acquired under section 
31.6 	41.56 which are under the jurisdiction of the Department of Agriculture. 
31.7 	(c)  Rental of living accommodations. The commissioner shall establish rental rates 
31.8 	for all living accommodations provided by the state for its employees. Money collected as 
31.9 	rent by state agencies pursuant to this paragraph must be deposited in the state treasury 
31.10 	and credited to the general fund. 
31.11 	(d)  Lease of space in certain state buildings to state agencies. The commissioner 
31.12 	may lease portions of the state-owned buildings in the Capitol complex, the Capitol 
31.13 	Square Building, the Health Building, and the building at 1246 University Avenue, St. 
31.14 	Paul, Minnesota,under the custodial control of the commissioner to state agencies and 
31.15 	the court administrator on behalf of the judicial branch of state government and charge 
31.16 	rent on the basis of space occupied. Notwithstanding any law to the contrary, all money 
31.17 	collected as rent pursuant to the terms of this section shall be deposited in the state 
31.18 	treasury. Money collected as rent to recover the bond interest costs of a building funded 
31.19 	from the state bond proceeds fund shall be credited to the general fund. Money collected 
31.20 	as rent to recover the depreciation costs of a building funded from the state bond proceeds 
31.21 	fund and money collected as rent to recover capital expenditures from capital asset 
31.22 	preservation and replacement appropriations and statewide building access appropriations 
31.23 	shall be credited to a segregated asset preservation and replacement account in a special 
31.24 	revenue fund. Fifty percent of the money credited to the account each fiscal year must 
31.25 	be transferred to the general fund. The remaining money in the account is appropriated 
31.26 	to the commissioner to be expended for asset preservation projects as determined by the 
31.27 	commissioner. Money collected as rent to recover the depreciation and interest costs of 
31.28 	a building built with other state dedicated funds shall be credited to the dedicated fund 
31.29 	which funded the original acquisition or construction. All other money received shall be 
31.30 	credited to the general services revolving fund. 
31.31 	(e) Lease of space in Andersen and Freeman buildings.The commissioner may 
31.32 	lease space in the Elmer L. Andersen and Orville L. Freeman buildings to state agencies 
31.33 	and charge rent on the basis of space occupied. Money collected as rent under this 
31.34 	paragraph to fund future building repairs must be credited to a segregated account for each 
31.35 	building in the special revenue fund and is appropriated to the commissioner to make 
31.36 	the repairs. When the state acquires title to each building, the account for that building 
32.1 	must be abolished and any balance remaining in the account must be transferred to the 
32.2 	appropriate asset preservation and replacement account created under paragraph (d).

32.3 	Sec. 21. Minnesota Statutes 2006, section 16B.35, subdivision 1, is amended to read:
32.4 		Subdivision 1.Percent of appropriations for art. An appropriation for the 
32.5 	construction or alteration of any state building may contain an amount not to exceed 
32.6 	the lesser of $100,000 or one percent of the total appropriation for the building for the 
32.7 	acquisition of works of art, excluding landscaping, which may be an integral part of the 
32.8 	building or its grounds, attached to the building or grounds or capable of being displayed 
32.9 	in other state buildings. If the appropriation for works of art is limited by the $100,000 
32.10 	cap in this section, the appropriation for the construction or alteration of the building must 
32.11 	be reduced to reflect the reduced amount that will be spent on works of art. Money used 
32.12 	for this purpose is available only for the acquisition of works of art to be exhibited in areas 
32.13 	of a building or its grounds accessible, on a regular basis, to members of the public. No 
32.14 	more than ten percent of the total amount available each fiscal year under this subdivision 
32.15 	may be used for administrative expenses, either by the commissioner of administration or 
32.16 	by any other entity to whom the commissioner delegates administrative authority. For the 
32.17 	purposes of this section "state building" means a building the construction or alteration of 
32.18 	which is paid for wholly or in part by the state.

32.19 	EFFECTIVE DATE. This section is effective July 1, 2007. The repeal of the 
32.20 	$100,000 limit in this section applies to appropriations made before, on, or after that date.

32.21 	Sec. 22. [16B.97] GRANTS MANAGEMENT.
32.22 		Subdivision 1.Grant agreement. (a) A grant agreement is a written instrument or 
32.23 	electronic document defining a legal relationship between a granting agency and a grantee 
32.24 	when the principal purpose of the relationship is to transfer cash or something of value 
32.25 	to the recipient to support a public purpose authorized by law instead of acquiring by 
32.26 	professional or technical contract, purchase, lease, or barter property or services for the 
32.27 	direct benefit or use of the granting agency.
32.28 	(b) This section does not apply to capital project grants to political subdivisions as 
32.29 	defined by section 16A.86.
32.30 		Subd. 2.Grants governance. The commissioner shall provide leadership and 
32.31 	direction for policy related to grants management in Minnesota in order to foster more 
32.32 	consistent, streamlined interaction between executive agencies, funders, and grantees that 
32.33 	will enhance access to grant opportunities and information and lead to greater program 
33.1 	accountability and transparency. The commissioner has the duties and powers stated in this 
33.2 	section. An executive agency must do what the commissioner requires under this section.
33.3 		Subd. 3.Discretionary powers. The commissioner has the authority to:
33.4 	(1) review grants management practices and propose policy and procedure 
33.5 	improvements to the governor, legislature, executive agencies, and the federal government;
33.6 	(2) sponsor, support, and facilitate innovative and collaborative grants management 
33.7 	projects with public and private organizations;
33.8 	(3) review, recommend, and implement alternative strategies for grants management;
33.9 	(4) collect and disseminate information, issue reports relating to grants management, 
33.10 	and sponsor and conduct conferences and studies; and
33.11 	(5) participate in conferences and other appropriate activities related to grants 
33.12 	management issues.
33.13 		Subd. 4.Duties. (a) The commissioner shall:
33.14 	(1) create general grants management policies and procedures that are applicable to 
33.15 	all executive agencies. The commissioner may approve exceptions to these policies and 
33.16 	procedures for particular grant programs. Exceptions shall expire or be renewed after five 
33.17 	years. Executive agencies shall retain management of individual grants programs;
33.18 	(2) provide a central point of contact concerning statewide grants management 
33.19 	policies and procedures;
33.20 	(3) serve as a resource to executive agencies in such areas as training, evaluation, 
33.21 	collaboration, and best practices in grants management;
33.22 	(4) ensure grants management needs are considered in the development, upgrade, 
33.23 	and use of statewide administrative systems and leverage existing technology wherever 
33.24 	possible;
33.25 	(5) oversee and approve future professional and technical service contracts and 
33.26 	other information technology spending related to executive agency grants management 
33.27 	activities;
33.28 	(6) provide a central point of contact for comments about executive agencies 
33.29 	violating statewide grants governance policies and about fraud and waste in grants 
33.30 	processes;
33.31 	(7) forward received comments to the appropriate agency for further action, and may 
33.32 	follow up as necessary; 
33.33 	(8) provide a single listing of all available executive agency competitive grant 
33.34 	opportunities and resulting grant recipients;
33.35 	(9) selectively review development and implementation of executive agency grants, 
33.36 	policies, and practices; and
34.1 	(10) selectively review executive agency compliance with best practices.
34.2 	(b) The commissioner may determine that it is cost-effective for agencies to develop 
34.3 	and use shared grants management technology systems. This system would be governed 
34.4 	under section 16E.01, subdivision 3, paragraph (b).

34.5 	Sec. 23. [16B.98] GRANTS MANAGEMENT PROCESS.
34.6 		Subdivision 1.Limitation. As a condition of receiving a grant from an appropriation 
34.7 	of state funds, the recipient of the grant must agree to minimize administrative costs. The 
34.8 	granting agency is responsible for negotiating appropriate limits to these costs so that the 
34.9 	state derives the optimum benefit for grant funding.
34.10 		Subd. 2.Ethical practices and conflict of interest. An employee of the executive 
34.11 	branch involved directly or indirectly in grants processes, at any level, is subject to the 
34.12 	code of ethics in section 43A.38.
34.13 		Subd. 3.Conflict of interest. (a) The commissioner must develop policies 
34.14 	regarding code of ethics and conflict of interest designed to prevent conflicts of interest for 
34.15 	employees, committee members, or others involved in the recommendation, awarding, 
34.16 	and administration of grants. The policies must apply to employees who are directly or 
34.17 	indirectly in the grants process, which may include the following:
34.18 	(1) developing request for proposals or evaluation criteria;
34.19 	(2) drafting, recommending, awarding, amending, revising, or entering into grant 
34.20 	agreements;
34.21 	(3) evaluating or monitoring performance; or
34.22 	(4) authorizing payments.
34.23 	(b) The policies must include:
34.24 	(1) a process to make all parties to the grant aware of policies and laws relating to 
34.25 	conflict of interest, and training on how to avoid and address potential conflicts; and
34.26 	(2) a process under which those who have a conflict of interest or a potential conflict 
34.27 	of interest must disclose the matter.
34.28 	(c) If the employee, appointing authority, or commissioner determines that a conflict 
34.29 	of interest exists, the matter shall be assigned to another employee who does not have a 
34.30 	conflict of interest. If it is not possible to assign the matter to an employee who does not 
34.31 	have a conflict of interest, interested personnel shall be notified of the conflict and the 
34.32 	employee may proceed with the assignment.
34.33 		Subd. 4.Reporting of violations. A state employee who discovers evidence 
34.34 	of violation of laws or rules governing grants is encouraged to report the violation or 
34.35 	suspected violation to the employee's supervisor, the commissioner or the commissioner's 
35.1 	designee, or the legislative auditor. The legislative auditor shall report to the Legislative 
35.2 	Audit Commission if there are multiple complaints about the same agency. The auditor's 
35.3 	report to the Legislative Audit Commission under this section must disclose only the 
35.4 	number and type of violations alleged. An employee making a good faith report under this 
35.5 	section has the protections provided for under section 181.932, prohibiting the employer 
35.6 	from discriminating against the employee.
35.7 		Subd. 5.Creation and validity of grant agreements. (a) A grant agreement is 
35.8 	not valid and the state is not bound by the grant unless:
35.9 	(1) the grant has been executed by the head of the agency or a delegate who is 
35.10 	party to the grant; and
35.11 	(2) the accounting system shows an encumbrance for the amount of the grant in 
35.12 	accordance with policy approved by the commissioner.
35.13 	(b) The combined grant agreement and amendments must not exceed five years 
35.14 	without specific, written approval by the commissioner according to established policy, 
35.15 	procedures, and standards, or unless the commissioner determines that a longer duration is 
35.16 	in the best interest of the state.
35.17 	(c) A fully executed copy of the grant agreement with all amendments and other 
35.18 	required records relating to the grant must be kept on file at the granting agency for a time 
35.19 	equal to that required of grantees in subdivision 8.
35.20 	(d) Grant agreements must comply with policies established by the commissioner 
35.21 	for minimum grant agreement standards and practices.
35.22 	(e) The attorney general may periodically review and evaluate a sample of state 
35.23 	agency grants to ensure compliance with applicable laws.
35.24 		Subd. 6.Grant administration. A granting agency shall diligently administer 
35.25 	and monitor any grant it has entered into.
35.26 		Subd. 7.Grant payments. Payments to the grantee may not be issued until the 
35.27 	grant agreement is fully executed.
35.28 		Subd. 8.Audit. (a) A grant agreement made by an executive agency must include an 
35.29 	audit clause that provides that the books, records, documents, and accounting procedures 
35.30 	and practices of the grantee or other party that are relevant to the grant or transaction are 
35.31 	subject to examination by the granting agency and either the legislative auditor or the state 
35.32 	auditor, as appropriate, for a minimum of six years from the grant agreement end date, 
35.33 	receipt and approval of all final reports, or the required period of time to satisfy all state 
35.34 	and program retention requirements, whichever is later. If a grant agreement does not 
35.35 	include an express audit clause, the audit authority under this subdivision is implied.
36.1 	(b) If the granting agency is a local unit of government, and the governing body of 
36.2 	the local unit of government requests that the state auditor examine the books, records, 
36.3 	documents, and accounting procedures and practices of the grantee or other party 
36.4 	according to this subdivision, the granting agency shall be liable for the cost of the 
36.5 	examination. If the granting agency is a local unit of government, and the grantee or other 
36.6 	party requests that the state auditor examine all books, records, documents, and accounting 
36.7 	procedures and practices related to the grant, the grantee or other party that requested the 
36.8 	examination shall be liable for the cost of the examination.
36.9 		Subd. 9.Authority of attorney general. The attorney general may pursue 
36.10 	remedies available by law to avoid the obligation of an agency to pay under a grant or to 
36.11 	recover payments made if activities under the grant are so unsatisfactory, incomplete, or 
36.12 	inconsistent that payment would involve unjust enrichment. The contrary opinion of the 
36.13 	granting agency does not affect the power of the attorney general under this subdivision.
36.14 		Subd. 10.Grants with Indian tribes and bands. Notwithstanding any other law, 
36.15 	an agency may not require an Indian tribe or band to deny its sovereignty as a requirement 
36.16 	or condition of a grant with an agency.

36.17 	Sec. 24. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision 
36.18 	to read:
36.19 		Subd. 3a.Best and final offer. "Best and final offer" means an optional step in 
36.20 	the solicitation process in which responders are requested to improve their response by 
36.21 	methods including, but not limited to, the reduction of cost, clarification or modification of 
36.22 	the response, or the provision of additional information.

36.23 	Sec. 25. Minnesota Statutes 2006, section 16C.02, subdivision 4, is amended to read:
36.24 		Subd. 4.Best value. "Best value" describes a result intended in the acquisition of all 
36.25 	goods and services. Price must be one of the evaluation criteria when acquiring goods 
36.26 	and services. Other evaluation criteria may include, but are not limited to, environmental 
36.27 	considerations, quality, and vendor performance. In achieving "best value" strategic 
36.28 	sourcing tools, including but not limited to best and final offers, negotiations, contract 
36.29 	consolidation, product standardization, and mandatory-use enterprise contracts shall be 
36.30 	used at the commissioner's discretion.

36.31 	Sec. 26. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision 
36.32 	to read:
37.1 		Subd. 6a.Enterprise procurement. "Enterprise procurement" means the process 
37.2 	undertaken by the commissioner to leverage economies of scale of multiple end users to 
37.3 	achieve cost savings and other favorable terms in contracts for goods and services.

37.4 	Sec. 27. Minnesota Statutes 2006, section 16C.02, subdivision 12, is amended to read:
37.5 		Subd. 12.Request for proposal or RFP. "Request for proposal" or "RFP" means a 
37.6 	solicitation in which it is not advantageous to set forth all the actual, detailed requirements 
37.7 	at the time of solicitation and responses are subject to negotiation negotiated to achieve 
37.8 	best value for the state.

37.9 	Sec. 28. Minnesota Statutes 2006, section 16C.02, subdivision 14, is amended to read:
37.10 		Subd. 14.Response. "Response" means the offer received from a vendor in 
37.11 	response to a solicitation. A response includes submissions commonly referred to as 
37.12 	"offers," "bids," "quotes," or "proposals.," "best and final offers," or "negotiated offers."

37.13 	Sec. 29. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision 
37.14 	to read:
37.15 		Subd. 20.Strategic sourcing. "Strategic sourcing" means methods used to 
37.16 	analyze and reduce spending on goods and services, including but not limited to 
37.17 	spend analysis, product standardization, contract consolidation, negotiations, multiple 
37.18 	jurisdiction purchasing alliances, reverse and forward auctions, life-cycle costing, and 
37.19 	other techniques.

37.20 	Sec. 30. Minnesota Statutes 2006, section 16C.03, subdivision 2, is amended to read:
37.21 		Subd. 2.Rulemaking authority. Subject to chapter 14, the commissioner may 
37.22 	adopt rules, consistent with this chapter and chapter 16B, relating to the following topics:
37.23 	(1) procurement process including solicitations and responses to solicitations, bid 
37.24 	security, vendor errors, opening of responses, award of contracts, tied bids, and award 
37.25 	protest process;
37.26 	(2) contract performance and failure to perform;
37.27 	(3) authority to debar or suspend vendors, and reinstatement of vendors;
37.28 	(4) contract cancellation;
37.29 	(5) procurement from rehabilitation facilities; and
37.30 	(6) organizational conflicts of interest.

37.31 	Sec. 31. Minnesota Statutes 2006, section 16C.03, subdivision 4, is amended to read:
38.1 		Subd. 4.Contracting authority. The commissioner shall conduct all contracting by, 
38.2 	for, and between agencies and perform all contract management and review functions for 
38.3 	contracts, except those functions specifically delegated to be performed by the contracting 
38.4 	agency, the attorney general, or otherwise provided for by law. The commissioner may 
38.5 	require that agency staff participate in the development of enterprise procurements 
38.6 	including the development of product standards, specifications and other requirements.

38.7 	Sec. 32. Minnesota Statutes 2006, section 16C.03, subdivision 8, is amended to read:
38.8 		Subd. 8.Policy and procedures. The commissioner is authorized to issue policies, 
38.9 	procedures, and standards applicable to all acquisition activities by and for agencies.
38.10 	Consistent with the authority specified in this chapter, the commissioner shall develop 
38.11 	and implement policies, procedures, and standards ensuring the optimal use of strategic 
38.12 	sourcing techniques.

38.13 	Sec. 33. Minnesota Statutes 2006, section 16C.03, subdivision 16, is amended to read:
38.14 		Subd. 16.Delegation of duties. The commissioner may delegate duties imposed by 
38.15 	this chapter to the head of an agency and to any subordinate of the agency head. Delegated 
38.16 	duties shall be exercised in the name of the commissioner and under the commissioner's 
38.17 	direct supervision and control. A delegation of duties may include, but is not limited to, 
38.18 	allowing individuals within agencies to acquire goods, services, and utilities within dollar 
38.19 	limitations and for designated types of acquisitions. Delegation of contract management 
38.20 	and review functions must be filed with the secretary of state and may not, except with 
38.21 	respect to delegations within the Department of Administration, exceed two years in 
38.22 	duration. The commissioner may withdraw any delegation at the commissioner's sole 
38.23 	discretion. The commissioner may require an agency head or subordinate to accept 
38.24 	delegated responsibility to procure goods or services intended for the exclusive use of the 
38.25 	agency receiving the delegation.

38.26 	Sec. 34. [16C.046] WEB SITE WITH SEARCHABLE DATABASE ON STATE 
38.27 	CONTRACTS AND GRANTS.
38.28 	(a) The commissioner of administration must maintain a Web site with a searchable 
38.29 	database providing the public with information on state contracts, including grant 
38.30 	contracts. The database must include the following information for each state contract 
38.31 	valued in excess of $25,000:
38.32 	(1) the name and address of the entity receiving the contract;
38.33 	(2) the name of the agency entering into the contract;
39.1 	(3) whether the contract is:
39.2 	(i) for goods;
39.3 	(ii) for professional or technical services;
39.4 	(iii) for services other than professional and technical services; or
39.5 	(iv) a grant;
39.6 	(4) a brief statement of the purpose of the contract or grant;
39.7 	(5) the amount of the contract or grant and the fund from which this amount will be 
39.8 	paid; and
39.9 	(6) the dollar value of state contracts, other than grants, the entity has received in each 
39.10 	fiscal year and the dollar value of state grants the entity has received in each fiscal year.
39.11 	(b) Required information on a new contract or grant must be entered into the 
39.12 	database within 30 days of the time the contract is entered into.
39.13 	(c) For purposes of this section, a "grant" is a contract between a state agency and 
39.14 	a recipient, the primary purpose of which is to transfer cash or a thing of value to the 
39.15 	recipient to support a public purpose. Grant does not include payments to units of local 
39.16 	government, payments to state employees, or payments made under laws providing for 
39.17 	assistance to individuals.
39.18 	(d) The database must include information on grants and contracts entered into 
39.19 	beginning with fiscal year 2008 funds, and must retain that data for ten years.

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

39.21 	Sec. 35. Minnesota Statutes 2006, section 16C.05, subdivision 1, is amended to read:
39.22 		Subdivision 1.Agency cooperation. Agencies shall fully cooperate with the 
39.23 	commissioner in the management and review of state contracts and in the development 
39.24 	and implementation of strategic sourcing techniques.

39.25 	Sec. 36. Minnesota Statutes 2006, section 16C.05, subdivision 2, is amended to read:
39.26 		Subd. 2.Creation and validity of contracts. (a) A contract is not valid and the state 
39.27 	is not bound by it and no agency, without the prior written approval of the commissioner 
39.28 	granted pursuant to subdivision 2a, may authorize work to begin on it unless:
39.29 	(1) it has first been executed by the head of the agency or a delegate who is a party 
39.30 	to the contract;
39.31 	(2) it has been approved by the commissioner; and
39.32 	(3) the accounting system shows an encumbrance for the amount of the contract 
39.33 	liability, except as allowed by policy approved by the commissioner and commissioner of 
39.34 	finance for routine, low-dollar procurements.
40.1 	(b) The combined contract and amendments must not exceed five years without 
40.2 	specific, written approval by the commissioner according to established policy, procedures, 
40.3 	and standards, or unless otherwise provided for by law. The term of the original contract 
40.4 	must not exceed two years unless the commissioner determines that a longer duration is 
40.5 	in the best interest of the state.
40.6 	(c) Grants, interagency agreements, purchase orders, work orders, and annual plans 
40.7 	need not, in the discretion of the commissioner and attorney general, require the signature 
40.8 	of the commissioner and/or the attorney general. A signature is not required for work 
40.9 	orders and amendments to work orders related to Department of Transportation contracts. 
40.10 	Bond purchase agreements by the Minnesota Public Facilities Authority do not require 
40.11 	the approval of the commissioner.
40.12 	(d) Amendments to contracts must entail tasks that are substantially similar to 
40.13 	those in the original contract or involve tasks that are so closely related to the original 
40.14 	contract that it would be impracticable for a different contractor to perform the work. The 
40.15 	commissioner or an agency official to whom the commissioner has delegated contracting 
40.16 	authority under section 16C.03, subdivision 16, must determine that an amendment would 
40.17 	serve the interest of the state better than a new contract and would cost no more. 
40.18 	(e) A fully executed copy of every contract, amendments to the contract, and 
40.19 	performance evaluations relating to the contract must be kept on file at the contracting 
40.20 	agency for a time equal to that specified for contract vendors and other parties in 
40.21 	subdivision 5.
40.22 	(f) The attorney general must periodically review and evaluate a sample of state 
40.23 	agency contracts to ensure compliance with laws.

40.24 	Sec. 37. Minnesota Statutes 2006, section 16C.08, is amended by adding a subdivision 
40.25 	to read:
40.26 		Subd. 1a.Enterprise procurement. Notwithstanding section 15.061 or any 
40.27 	other law, the commissioner shall, to the fullest extent practicable, conduct enterprise 
40.28 	procurements that result in the establishment of professional or technical contracts for 
40.29 	use by multiple state agencies. The commissioner is authorized to mandate use of any 
40.30 	contract entered into as a result of an enterprise procurement process. Agencies shall fully 
40.31 	cooperate in the development and use of contracts entered into under this section.

40.32 	Sec. 38. Minnesota Statutes 2006, section 16C.08, subdivision 2, is amended to read:
41.1 		Subd. 2.Duties of contracting agency. (a) Before an agency may seek approval of 
41.2 	a professional or technical services contract valued in excess of $5,000, it must provide 
41.3 	the following:
41.4 	(1) a description of how the proposed contract or amendment is necessary and 
41.5 	reasonable to advance the statutory mission of the agency;
41.6 	(2) a description of the agency's plan to notify firms or individuals who may be 
41.7 	available to perform the services called for in the solicitation; and
41.8 	(3) a description of the performance measures or other tools that will be used to 
41.9 	monitor and evaluate contract performance.; and
41.10 	(4) an explanation detailing, if applicable, why this procurement is being pursued 
41.11 	unilaterally by the agency and not as an enterprise procurement.
41.12 	(b) In addition to paragraph (a), the agency must certify that:
41.13 	(1) no current state employee is able and available to perform the services called 
41.14 	for by the contract;
41.15 	(2) the normal competitive bidding mechanisms will not provide for adequate 
41.16 	performance of the services;
41.17 	(3) reasonable efforts will be made to publicize the availability of the contract to 
41.18 	the public;
41.19 	(4) the agency will develop and implement a written plan providing for the 
41.20 	assignment of specific agency personnel to manage the contract, including a monitoring 
41.21 	and liaison function, the periodic review of interim reports or other indications of past 
41.22 	performance, and the ultimate utilization of the final product of the services;
41.23 	(5) the agency will not allow the contractor to begin work before the contract is fully 
41.24 	executed unless an exception under section 16C.05, subdivision 2a, has been granted by 
41.25 	the commissioner and funds are fully encumbered; 
41.26 	(6) the contract will not establish an employment relationship between the state or 
41.27 	the agency and any persons performing under the contract; and
41.28 	(7) in the event the results of the contract work will be carried out or continued by 
41.29 	state employees upon completion of the contract, the contractor is required to include 
41.30 	state employees in development and training, to the extent necessary to ensure that after 
41.31 	completion of the contract, state employees can perform any ongoing work related to 
41.32 	the same function.; and
41.33 	(8) the agency will not contract out its previously eliminated jobs for four years 
41.34 	without first considering the same former employees who are on the seniority unit layoff 
41.35 	list who meet the minimum qualifications determined by the agency.
42.1 	(c) A contract establishes an employment relationship for purposes of paragraph (b), 
42.2 	clause (6), if, under federal laws governing the distinction between an employee and an 
42.3 	independent contractor, a person would be considered an employee.

42.4 	Sec. 39. Minnesota Statutes 2006, section 16C.08, subdivision 4, is amended to read:
42.5 		Subd. 4.Reports. (a) The commissioner shall submit to the governor, the chairs of 
42.6 	the house Ways and Means and senate Finance Committees, and the Legislative Reference 
42.7 	Library a yearly listing of all contracts for professional or technical services executed. 
42.8 	The report must identify the contractor, contract amount, duration, and services to be 
42.9 	provided. The commissioner shall also issue yearly reports summarizing the contract 
42.10 	review activities of the department by fiscal year.
42.11 	(b) The fiscal year report must be submitted by September 1 of each year and must:
42.12 	(1) be sorted by agency and by contractor;
42.13 	(2) show the aggregate value of contracts issued by each agency and issued to each 
42.14 	contractor;
42.15 	(3) distinguish between contracts that are being issued for the first time and contracts 
42.16 	that are being extended;
42.17 	(4) state the termination date of each contract;
42.18 	(5) identify services by commodity code, including topics such as contracts for 
42.19 	training, contracts for research and opinions, and contracts for computer systems; and
42.20 	(6) identify which contracts were awarded without following the solicitation process 
42.21 	in this chapter because it was determined that there was only a single source for the 
42.22 	services.
42.23 	(c) Within 30 days of final completion of a contract over $50,000 covered by this 
42.24 	subdivision, the head of the agency entering into the contract must submit a one-page 
42.25 	report to the commissioner who must submit a copy to the Legislative Reference Library. 
42.26 	The report must:
42.27 	(1) summarize the purpose of the contract, including why it was necessary to enter 
42.28 	into a contract;
42.29 	(2) state the amount spent on the contract;
42.30 	(3) be accompanied by the performance evaluation prepared according to subdivision 
42.31 	4a; and
42.32 	(4)(3) if the contract was awarded without following the solicitation process in this 
42.33 	chapter because it was determined that there was only a single source for the services, 
42.34 	explain why the agency determined there was only a single source for the services.; and
43.1 	(4) include a written performance evaluation of the work done under the contract. 
43.2 	The evaluation must include an appraisal of the contractor's timeliness, quality, cost, and 
43.3 	overall performance in meeting the terms and objectives of the contract. Contractors may 
43.4 	request copies of evaluations prepared under this subdivision and may respond in writing. 
43.5 	Contractor responses must be maintained with the contract file.

43.6 	Sec. 40. Minnesota Statutes 2006, section 16C.08, is amended by adding a subdivision 
43.7 	to read:
43.8 		Subd. 4b.Limitations on actions. No action may be maintained by a contractor 
43.9 	against an employee or agency who discloses information about a current or former 
43.10 	contractor under subdivision 4, unless the contractor demonstrates by clear and convincing 
43.11 	evidence that:
43.12 	(1) the information was false and defamatory;
43.13 	(2) the employee or agency knew or should have known the information was false 
43.14 	and acted with malicious intent to injure the current or former contractor; and
43.15 	(3) the information was acted upon in a manner that caused harm to the current or 
43.16 	former contractor.

43.17 	Sec. 41. [16C.086] CALL-CENTER.
43.18 	An agency may not enter into a contract for operation of a call-center, or a contract 
43.19 	whose primary purpose is to provide similar services answering or responding to telephone 
43.20 	calls on behalf of an agency without determining if the service can be provided by state 
43.21 	employees, and the services must be provided at offices located in the United States. For 
43.22 	purposes of this section, "agency" includes the Minnesota State Colleges and Universities.

43.23 	EFFECTIVE DATE. This section is effective the day following final enactment, 
43.24 	and applies to a contract entered into or renewed or otherwise extended after that date.

43.25 	Sec. 42. Minnesota Statutes 2006, section 16C.10, subdivision 7, is amended to read:
43.26 		Subd. 7.Reverse auction. (a) For the purpose of this subdivision, "reverse auction" 
43.27 	means a purchasing process in which vendors compete to provide goods or computer
43.28 	services at the lowest selling price in an open and interactive environment. Reverse 
43.29 	auctions may not be utilized to procure engineering design services or architectural 
43.30 	services or to establish building and construction contracts under sections 16C.26 to 
43.31 	16C.29.
44.1 	(b) The provisions of sections 13.591, subdivision 3, and 16C.06, subdivision 2, 
44.2 	do not apply when the commissioner determines that a reverse auction is the appropriate 
44.3 	purchasing process.

44.4 	Sec. 43. [16C.147] DOCUMENT IMAGING; USE OF PERSONS WITH 
44.5 	DEVELOPMENTAL DISABILITIES.
44.6 	The commissioner shall promote the use of persons with developmental disabilities 
44.7 	to provide document imaging services for state and local government agencies.

44.8 	Sec. 44. [16C.251] BEST AND FINAL OFFER.
44.9 	A "best and final offer" solicitation process may not be used for building and 
44.10 	construction contracts.

44.11 	Sec. 45. Minnesota Statutes 2006, section 43A.346, subdivision 1, is amended to read:
44.12 		Subdivision 1.Definition. For purposes of this section, "state employee" means a 
44.13 	person currently occupying a civil service position in the executive or legislative branch of 
44.14 	state government, the Minnesota State Retirement System, or the Office of the Legislative 
44.15 	Auditor, or a person employed by the Metropolitan Council.

44.16 	Sec. 46. Minnesota Statutes 2006, section 161.1419, subdivision 8, is amended to read:
44.17 		Subd. 8.Expiration. The commission expires on June 30, 2007 2012.

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

44.19 	Sec. 47. Minnesota Statutes 2006, section 270B.14, is amended by adding a 
44.20 	subdivision to read:
44.21 		Subd. 19.Disclosure to Department of Finance. The commissioner may disclose 
44.22 	to the commissioner of finance returns or return information necessary in order to prepare 
44.23 	a revenue forecast under section 16A.103.

44.24 	Sec. 48. Minnesota Statutes 2006, section 270C.03, subdivision 1, is amended to read:
44.25 		Subdivision 1.Powers and duties. The commissioner shall have and exercise 
44.26 	the following powers and duties:
44.27 	(1) administer and enforce the assessment and collection of taxes;
44.28 	(2) make determinations, corrections, and assessments with respect to taxes, 
44.29 	including interest, additions to taxes, and assessable penalties;
45.1 	(3) use statistical or other sampling techniques consistent with generally accepted 
45.2 	auditing standards in examining returns or records and making assessments;
45.3 	(4) investigate the tax laws of other states and countries, and formulate and submit 
45.4 	to the legislature such legislation as the commissioner may deem expedient to prevent 
45.5 	evasions of state revenue laws and to secure just and equal taxation and improvement in 
45.6 	the system of state revenue laws;
45.7 	(5) consult and confer with the governor upon the subject of taxation, the 
45.8 	administration of the laws in regard thereto, and the progress of the work of the 
45.9 	department, and furnish the governor, from time to time, such assistance and information 
45.10 	as the governor may require relating to tax matters;
45.11 	(6) execute and administer any agreement with the secretary of the treasury or the 
45.12 	Bureau of Alcohol, Tobacco, Firearms, and Explosives in the Department of Justice of the 
45.13 	United States or a representative of another state regarding the exchange of information 
45.14 	and administration of the state revenue laws;
45.15 	(7) require town, city, county, and other public officers to report information as to the 
45.16 	collection of taxes received from licenses and other sources, and such other information 
45.17 	as may be needful in the work of the commissioner, in such form as the commissioner 
45.18 	may prescribe;
45.19 	(8) authorize the use of unmarked motor vehicles to conduct seizures or criminal 
45.20 	investigations pursuant to the commissioner's authority; and
45.21 	(9) maintain toll-free telephone access for taxpayer assistance for calls from 
45.22 	locations within the state; and
45.23 	(10) exercise other powers and authority and perform other duties required of or 
45.24 	imposed upon the commissioner by law.

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

45.26 	Sec. 49. [270C.21] TAXPAYER ASSISTANCE GRANTS.
45.27 	When the commissioner awards grants to nonprofit organizations to coordinate, 
45.28 	facilitate, encourage, and aid in the provision of taxpayer assistance services, the 
45.29 	commissioner must provide public notice of the grants in a timely manner so that the 
45.30 	grant process is completed and grants are awarded by October 1, in order for recipient 
45.31 	organizations to adequately plan expenditures for the filing season. At the time the 
45.32 	commissioner provides public notice, the commissioner must also notify nonprofit 
45.33 	organizations that received grants in the previous biennium.

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

46.1 	Sec. 50. Minnesota Statutes 2006, section 302A.821, subdivision 4, is amended to read:
46.2 		Subd. 4.Penalty; reinstatement. (a) A corporation that has failed to file a 
46.3 	registration pursuant to the requirements of subdivision 2 must be dissolved by the 
46.4 	secretary of state as described in paragraph (b).
46.5 	(b) If the corporation has not filed the registration for two consecutiveduring 
46.6 	any calendar years year, the secretary of state must issue a certificate of administrative 
46.7 	dissolution and the certificate must be filed in the Office of the Secretary of State. The 
46.8 	secretary of state shall send notice to the corporation that the corporation has been 
46.9 	dissolved and that the corporation may be reinstated by filing a registration and a $25 fee. 
46.10 	The notice must be given by United States mail unless the company has indicated to the 
46.11 	secretary of state that they are willing to receive notice by electronic notification, in which 
46.12 	case the secretary of state may give notice by mail or the indicated means. The secretary 
46.13 	of state shall annually inform the attorney general and the commissioner of revenue of 
46.14 	the methods by which the names of corporations dissolved under this section during the 
46.15 	preceding year may be determined. The secretary of state must also make available in 
46.16 	an electronic format the names of the dissolved corporations. A corporation dissolved in 
46.17 	this manner is not entitled to the benefits of section 302A.781. The liability, if any, of the 
46.18 	shareholders of a corporation dissolved in this manner shall be determined and limited in 
46.19 	accordance with section 302A.557, except that the shareholders shall have no liability to 
46.20 	any director of the corporation under section 302A.559, subdivision 2. 
46.21 	(c) After administrative dissolution, filing a registration and the $25 fee with the 
46.22 	secretary of state:
46.23 	(1) returns the corporation to good standing as of the date of the dissolution;
46.24 	(2) validates contracts or other acts within the authority of the articles, and the 
46.25 	corporation is liable for those contracts or acts; and
46.26 	(3) restores to the corporation all assets and rights of the corporation to the extent 
46.27 	they were held by the corporation before the dissolution occurred, except to the extent that 
46.28 	assets or rights were affected by acts occurring after the dissolution or sold or otherwise 
46.29 	distributed after that time.

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

46.31 	Sec. 51. Minnesota Statutes 2006, section 308A.995, subdivision 4, is amended to read:
46.32 		Subd. 4.Penalty; dissolution. (a) A cooperative that has failed to file a registration 
46.33 	pursuant to the requirements of this section by December 31 of the calendar year for which 
46.34 	the registration was required must be dissolved by the secretary of state as described in 
46.35 	paragraph (b).
47.1 	(b) If the cooperative has not filed the registration by December 31 of that calendar 
47.2 	year, the secretary of state must issue a certificate of involuntary dissolution, and the 
47.3 	certificate must be filed in the Office of the Secretary of State. The secretary of state must 
47.4 	annually inform the attorney general and the commissioner of revenue of the methods by 
47.5 	which the names of cooperatives dissolved under this section during the preceding year 
47.6 	may be determined. The secretary of state must also make available in an electronic 
47.7 	format the names of the dissolved cooperatives. A cooperative dissolved in this manner is 
47.8 	not entitled to the benefits of section 308A.981. 

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

47.10 	Sec. 52. Minnesota Statutes 2006, section 308B.121, subdivision 4, is amended to read:
47.11 		Subd. 4.Penalty; dissolution. (a) A cooperative that has failed to file a registration 
47.12 	under the requirements of this section must be dissolved by the secretary of state as 
47.13 	described in paragraph (b).
47.14 	(b) If the cooperative has not filed the registration by December 31 of that calendar 
47.15 	year, the secretary of state must issue a certificate of involuntary dissolution and the 
47.16 	certificate must be filed in the Office of the Secretary of State. The secretary of state must 
47.17 	annually inform the attorney general and the commissioner of revenue of the methods by 
47.18 	which the names of cooperatives dissolved under this section during the preceding year 
47.19 	may be determined. The secretary of state must also make available in an electronic 
47.20 	format the names of the dissolved cooperatives. A cooperative dissolved in this manner is 
47.21 	not entitled to the benefits of section 308B.971. 

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

47.23 	Sec. 53. Minnesota Statutes 2006, section 308B.215, subdivision 2, is amended to read:
47.24 		Subd. 2.Filing. The original articles and a designation of the cooperative's 
47.25 	registered office and agent, including a registration form under section 308B.121, shall 
47.26 	be filed with the secretary of state. The fee for filing the articles with the secretary of 
47.27 	state is $60. 

47.28 	EFFECTIVE DATE. This section is effective August 1, 2007.

47.29 	Sec. 54. [308B.903] NOTICE OF INTENT TO DISSOLVE.
47.30 	Before a cooperative begins dissolution, a notice of intent to dissolve must be filed 
47.31 	with the secretary of state. The notice must contain:
47.32 	(1) the name of the cooperative;
48.1 	(2) the date and place of the members' meeting at which the resolution was 
48.2 	approved; and
48.3 	(3) a statement that the requisite vote of the members approved the proposed 
48.4 	dissolution.

48.5 	EFFECTIVE DATE. This section is effective August 1, 2007.

48.6 	Sec. 55. Minnesota Statutes 2006, section 317A.823, subdivision 1, is amended to read:
48.7 		Subdivision 1.Annual registration. (a) The secretary of state must send annually 
48.8 	to each corporation at the registered office of the corporation a postcard notice announcing 
48.9 	the need to file the annual registration and informing the corporation that the annual 
48.10 	registration may be filed online and that paper filings may also be made, and informing 
48.11 	the corporation that failing to file the annual registration will result in an administrative 
48.12 	dissolution of the corporation.
48.13 	(b) Except for corporations to which paragraph (d) applies, Each calendar year 
48.14 	beginning in the calendar year following the calendar year in which a corporation 
48.15 	incorporates, a corporation must file with the secretary of state by December 31 of each 
48.16 	calendar year a registration containing the information listed in paragraph (c).
48.17 	(c) The registration must include:
48.18 	(1) the name of the corporation;
48.19 	(2) the address of its registered office;
48.20 	(3) the name of its registered agent, if any; and
48.21 	(4) the name and business address of the officer or other person exercising the 
48.22 	principal functions of president of the corporation.
48.23 	(d) The timely filing of an annual financial report and audit or an annual financial 
48.24 	statement under section 69.051, subdivision 1 or 1a, by a volunteer firefighter relief 
48.25 	association, as reflected in the notification by the state auditor under section 69.051, 
48.26 	subdivision 1c, constitutes presentation of the corporate registration. The secretary of state 
48.27 	may reject the registration by the volunteer firefighter relief association. Rejection must 
48.28 	occur if the information provided to the state auditor does not match the information 
48.29 	in the records of the secretary of state. The volunteer firefighter relief association may 
48.30 	amend the articles of incorporation as provided in sections 317A.131 to 317A.151 so 
48.31 	that the information from the state auditor may be accepted for filing. The timely filing 
48.32 	of an annual financial report and audit or an annual financial statement under section 
48.33 	69.051, subdivision 1 or 1a, does not relieve the volunteer firefighter relief association 
48.34 	of the requirement to file amendments to the articles of incorporation directly with the 
48.35 	secretary of state. 

49.1 	EFFECTIVE DATE. This section is effective August 1, 2007.

49.2 	Sec. 56. Minnesota Statutes 2006, section 321.0206, is amended to read:
49.3 	321.0206 DELIVERY TO AND FILING OF RECORDS BY SECRETARY OF 
49.4 	STATE; EFFECTIVE TIME AND DATE.
49.5 	(a) A record authorized or required to be delivered to the secretary of state for filing 
49.6 	under this chapter must be captioned to describe the record's purpose, be in a medium 
49.7 	permitted by the secretary of state, and be delivered to the secretary of state. Unless the 
49.8 	secretary of state determines that a record does not comply with the filing requirements 
49.9 	of this chapter, and if the appropriate filing fees have been paid, the secretary of state 
49.10 	shall file the record and:
49.11 	(1) for a statement of dissociation, send:
49.12 	(A) a copy of the filed statement to the person which the statement indicates has 
49.13 	dissociated as a general partner; and
49.14 	(B) a copy of the filed statement to the limited partnership;
49.15 	(2) for a statement of withdrawal, send:
49.16 	(A) a copy of the filed statement to the person on whose behalf the record was 
49.17 	filed; and
49.18 	(B) if the statement refers to an existing limited partnership, a copy of the filed 
49.19 	statement to the limited partnership; and
49.20 	(3) for all other records, send a copy of the filed record to the person on whose 
49.21 	behalf the record was filed.
49.22 	(b) Upon request and payment of a fee, the secretary of state shall send to the 
49.23 	requester a certified copy of the requested record.
49.24 	(c) Except as otherwise provided in sections 321.0116 and 321.0207, a record 
49.25 	delivered to the secretary of state for filing under this chapter may specify an effective 
49.26 	time and a delayed effective date. Except as otherwise provided in this chapter, a record 
49.27 	filed by the secretary of state is effective: 
49.28 	(1) if the record does not specify an effective time and does not specify a delayed 
49.29 	effective date, on the date and at the time the record is filed as evidenced by the secretary 
49.30 	of state's endorsement of the date and time on the record;
49.31 	(2) if the record specifies an effective time but not a delayed effective date, on the 
49.32 	date the record is filed at the time specified in the record;
49.33 	(3) if the record specifies a delayed effective date but not an effective time, at 12:01 
49.34 	a.m. on the earlier of:
49.35 	(A) the specified date; or
50.1 	(B) the 30th day after the record is filed; or
50.2 	(4) if the record specifies an effective time and a delayed effective date, at the 
50.3 	specified time on the earlier of:
50.4 	(A) the specified date; or
50.5 	(B) the 30th day after the record is filed.
50.6 	(d) The appropriate fees for filings under this chapter are:
50.7 	(1) for filing a certificate of limited partnership, $100;
50.8 	(2) for filing an amended certificate of limited partnership, $50;
50.9 	(3) for filing any other record, other than the annual report required by section 
50.10 	321.0210, for which no fee must be charged, required or permitted to be delivered for 
50.11 	filing, $35;
50.12 	(4) for filing a certificate requesting authority to transact business in Minnesota as a 
50.13 	foreign limited partnership, $85;
50.14 	(5) for filing an application of reinstatement, $25; and
50.15 	(6) for filing a name reservation for a foreign limited partnership name, $35; and
50.16 	(7) for filing any other record, other than the annual report required by section 
50.17 	321.0210, for which no fee must be charged, required or permitted to be delivered for 
50.18 	filing on a foreign limited partnership authorized to transact business in Minnesota, $50.

50.19 	EFFECTIVE DATE. This section is effective July 1, 2007.

50.20 	Sec. 57. Minnesota Statutes 2006, section 321.0210, is amended to read:
50.21 	321.0210 ANNUAL REPORT FOR SECRETARY OF STATE.
50.22 	(a) Subject to subsection (b):
50.23 	(1) in each calendar year following the calendar year in which a limited partnership 
50.24 	becomes subject to this chapter, the limited partnership must deliver to the secretary of 
50.25 	state for filing an annual registration containing the information required by subsection 
50.26 	(c); and
50.27 	(2) in each calendar year following the calendar year in which there is first on file 
50.28 	with the secretary of state a certificate of authority under section 321.0904 pertaining to a 
50.29 	foreign limited partnership, the foreign limited partnership must deliver to the secretary of 
50.30 	state for filing an annual registration containing the information required by subsection (c).
50.31 	(b) A limited partnership's obligation under subsection (a) ends if the limited 
50.32 	partnership delivers to the secretary of state for filing a statement of termination under 
50.33 	section 321.0203 and the statement becomes effective under section 321.0206. A foreign 
50.34 	limited partnership's obligation under subsection (a) ends if the secretary of state issues 
51.1 	and files a certificate of revocation under section 321.0906 or if the foreign limited 
51.2 	partnership delivers to the secretary of state for filing a notice of cancellation under 
51.3 	section 321.0907(a) and that notice takes effect under section 321.0206. If a foreign 
51.4 	limited partnership's obligations under subsection (a) end and later the secretary of state 
51.5 	files, pursuant to section 321.0904, a new certificate of authority pertaining to that foreign 
51.6 	limited partnership, subsection (a)(2), again applies to the foreign limited partnership and, 
51.7 	for the purposes of subsection (a)(2), the calendar year of the new filing is treated as the 
51.8 	calendar year in which a certificate of authority is first on file with the secretary of state.
51.9 	(c) The annual registration must contain:
51.10 	(1) the name of the limited partnership or foreign limited partnership;
51.11 	(2) the address of its designated office and the name and street and mailing address 
51.12 	of its agent for service of process in Minnesota and, if the agent is not an individual, the 
51.13 	name, street and mailing address, and telephone number of an individual who may be 
51.14 	contacted for purposes other than service of process with respect to the limited partnership;
51.15 	(3) in the case of a limited partnership, the street and mailing address of its principal 
51.16 	office; and
51.17 	(4) in the case of a foreign limited partnership, the name of the state or other 
51.18 	jurisdiction under whose law the foreign limited partnership is formed and any alternate 
51.19 	name adopted under section 321.0905(a).
51.20 	(d) The secretary of state shall:
51.21 	(1) administratively dissolve under section 321.0809 a limited partnership that has 
51.22 	failed to file a registration pursuant to subsection (a); and
51.23 	(2) revoke under section 321.0906 the certificate of authority of a foreign limited 
51.24 	partnership that has failed to file a registration pursuant to subsection (a).

51.25 	Sec. 58. [321.0909] NAME CHANGES FILED IN HOME STATE.
51.26 	A foreign limited partnership shall notify the secretary of state of any changes to the 
51.27 	partnership name filed with the state of formation by filing a certificate from the state of 
51.28 	formation certifying to the change of name.

51.29 	EFFECTIVE DATE. This section is effective August 1, 2007.

51.30 	Sec. 59. Minnesota Statutes 2006, section 323A.1003, is amended to read:
51.31 	323A.1003 ANNUAL REGISTRATION.
51.32 	(a) Each calendar year beginning in the calendar year following the calendar year 
51.33 	in which a partnership files a statement of qualification or in which a foreign partnership 
52.1 	becomes authorized to transact business in this state, the secretary of state must mail by 
52.2 	first class mail an annual registration form to the street address of the partnership's chief 
52.3 	executive office, if located in Minnesota, the office in this state, if the chief executive 
52.4 	office is not located in Minnesota, or address of the registered agent of the partnership 
52.5 	as shown on the records of the secretary of state when the chief executive office is not 
52.6 	located in Minnesota and no other Minnesota office exists. The form must include the 
52.7 	following notice:
52.8 	"NOTICE: Failure to file this form by December 31 of this year will result in 
52.9 	the revocation of the statement of qualification of this limited liability partnership 
52.10 	without further notice from the secretary of state pursuant to Minnesota Statutes, section 
52.11 	323A.1003, subsection (d)." 
52.12 	(b) A limited liability partnership, and a foreign limited liability partnership 
52.13 	authorized to transact business in this state, shall file an annual registration in the office 
52.14 	of the secretary of state which contains:
52.15 	(1) the name of the limited liability partnership and the state or other jurisdiction 
52.16 	under whose laws the foreign limited liability partnership is formed;
52.17 	(2) the street address, including the zip code, of the partnership's chief executive 
52.18 	office and, if different, the street address, including the zip code, of an office of the 
52.19 	partnership in this state, if any; and
52.20 	(3) if the partnership does not have an office in this state, the name and street address, 
52.21 	including the zip code, of the partnership's current agent for service of process; and
52.22 	(4) if the agent for service of process under clause (3) is not an individual, the name, 
52.23 	street address, and telephone number of an individual who may be contacted for purposes 
52.24 	other than service of process with respect to the limited liability partnership.
52.25 	(c) An annual registration must be filed once each calendar year beginning in the 
52.26 	year following the calendar year in which a partnership files a statement of qualification or 
52.27 	a foreign partnership becomes authorized to transact business in this state.
52.28 	(d) The secretary of state must revoke the statement of qualification of a partnership 
52.29 	that fails to file an annual registration when due or pay the required filing fee. The 
52.30 	secretary of state must issue a certificate of revocation which must be filed in the office 
52.31 	of the secretary of state. The secretary of state must also make available in an electronic 
52.32 	format the names of the revoked limited liability companies.
52.33 	(e) A revocation under subsection (d) only affects a partnership's status as a limited 
52.34 	liability partnership and is not an event of dissolution of the partnership.
52.35 	(f) A partnership whose statement of qualification has been revoked may apply to 
52.36 	the secretary of state for reinstatement within one year after the effective date of the 
53.1 	revocation. A partnership must file an annual registration to apply for reinstatement and 
53.2 	pay a reinstatement fee of $135.
53.3 	(g) A reinstatement under subsection (f) relates back to and takes effect as of 
53.4 	the effective date of the revocation, and the partnership's status as a limited liability 
53.5 	partnership continues as if the revocation had never occurred.

53.6 	Sec. 60. Minnesota Statutes 2006, section 336.1-110, is amended to read:
53.7 	336.1-110 UNIFORM COMMERCIAL CODE ACCOUNT.
53.8 	The Uniform Commercial Code account is established as an account in the state 
53.9 	treasury. Fees that are not expressly set by statute but are charged by the secretary of state 
53.10 	to offset the costs of providing a service under this chapter must be deposited in the state 
53.11 	treasury and credited to the Uniform Commercial Code account.
53.12 	Fees that are not expressly set by statute but are charged by the secretary of state 
53.13 	to offset the costs of providing information contained in the computerized records 
53.14 	maintained by the secretary of state must be deposited in the state treasury and credited to 
53.15 	the Uniform Commercial Code account.
53.16 	Money in the Uniform Commercial Code account is continuously appropriated to the 
53.17 	secretary of state to implement and maintain the central filing system under this chapter, 
53.18 	to provide, improve, and expand other online or remote lien and business entity filing, 
53.19 	retrieval, and payment method services provided by the secretary of state, and to provide 
53.20 	electronic access to other computerized records maintained by the secretary of state.

53.21 	Sec. 61. Minnesota Statutes 2006, section 336.9-516, is amended to read:
53.22 	336.9-516 WHAT CONSTITUTES FILING; EFFECTIVENESS OF FILING.
53.23 	(a) What constitutes filing. Except as otherwise provided in subsection (b), 
53.24 	communication of a record to a filing office and tender of the filing fee or acceptance of 
53.25 	the record by the filing office constitutes filing. 
53.26 	(b) Refusal to accept record; filing does not occur. Filing does not occur with 
53.27 	respect to a record that a filing office refuses to accept because: 
53.28 	(1) the record is not communicated by a method or medium of communication 
53.29 	authorized by the filing office. For purposes of filing office authorization, transmission of 
53.30 	records using the Extensible Markup Language (XML) format is authorized by the filing 
53.31 	office after the later of July 1, 2007, or the determination of the secretary of state that the 
53.32 	central filing system is capable of receiving and processing these records;
53.33 	(2) an amount equal to or greater than the applicable filing fee is not tendered;
53.34 	(3) the filing office is unable to index the record because:
54.1 	(A) in the case of an initial financing statement, the record does not provide a name 
54.2 	for the debtor;
54.3 	(B) in the case of an amendment or correction statement, the record:
54.4 	(i) does not identify the initial financing statement as required by section 336.9-512
54.5 	or 336.9-518, as applicable; or 
54.6 	(ii) identifies an initial financing statement whose effectiveness has lapsed under 
54.7 	section 336.9-515; 
54.8 	(C) in the case of an initial financing statement that provides the name of a debtor 
54.9 	identified as an individual or an amendment that provides a name of a debtor identified as 
54.10 	an individual which was not previously provided in the financing statement to which the 
54.11 	record relates, the record does not identify the debtor's last name; or
54.12 	(D) in the case of a record filed or recorded in the filing office described in section 
54.13 	336.9-501(a)(1), the record does not provide a sufficient description of the real property 
54.14 	to which it relates; 
54.15 	(4) in the case of an initial financing statement or an amendment that adds a secured 
54.16 	party of record, the record does not provide a name and mailing address for the secured 
54.17 	party of record;
54.18 	(5) in the case of an initial financing statement or an amendment that provides a 
54.19 	name of a debtor which was not previously provided in the financing statement to which 
54.20 	the amendment relates, the record does not:
54.21 	(A) provide a mailing address for the debtor;
54.22 	(B) indicate whether the debtor is an individual or an organization; or
54.23 	(C) if the financing statement indicates that the debtor is an organization, provide:
54.24 	(i) a type of organization for the debtor;
54.25 	(ii) a jurisdiction of organization for the debtor; or
54.26 	(iii) an organizational identification number for the debtor or indicate that the debtor 
54.27 	has none;
54.28 	(6) in the case of an assignment reflected in an initial financing statement under 
54.29 	section 336.9-514(a) or an amendment filed under section 336.9-514(b), the record does 
54.30 	not provide a name and mailing address for the assignee; or 
54.31 	(7) in the case of a continuation statement, the record is not filed within the 
54.32 	six-month period prescribed by section 336.9-515(d). 
54.33 	(c) Rules applicable to subsection (b). For purposes of subsection (b): 
54.34 	(1) a record does not provide information if the filing office is unable to read or 
54.35 	decipher the information; and
55.1 	(2) a record that does not indicate that it is an amendment or identify an initial 
55.2 	financing statement to which it relates, as required by section 336.9-512, 336.9-514, or 
55.3 	336.9-518, is an initial financing statement. 
55.4 	(d) Refusal to accept record; record effective as filed record. A record that is 
55.5 	communicated to the filing office with tender of the filing fee, but which the filing office 
55.6 	refuses to accept for a reason other than one set forth in subsection (b), is effective as a 
55.7 	filed record except as against a purchaser of the collateral which gives value in reasonable 
55.8 	reliance upon the absence of the record from the files. 

55.9 	EFFECTIVE DATE. This section is effective August 1, 2007.

55.10 	Sec. 62. Minnesota Statutes 2006, section 336.9-525, is amended to read:
55.11 	336.9-525 FEES.
55.12 	(a)  Initial financing statement or other record: general rule. Except as otherwise 
55.13 	provided in subsection (d), the fee for filing and indexing a record under this part delivered 
55.14 	on paper is $20 and for a record delivered by any electronic means is $15. $5 of the 
55.15 	fee collected for each filing made online must be deposited in the uniform commercial 
55.16 	code account.
55.17 	(b)  Number of names. The number of names required to be indexed does not 
55.18 	affect the amount of the fee in subsection (a). 
55.19 	(c)  Response to information request. The fee for responding to a request for 
55.20 	information from the filing office, including for issuing a certificate showing whether there 
55.21 	is on file any financing statement naming a particular debtor, delivered on paper is $20 
55.22 	and for a record delivered by any electronic means is $15. $5 of the fee collected for each 
55.23 	request delivered online must be deposited in the uniform commercial code account.
55.24 	(d)  Record of mortgage. This section does not require a fee with respect to a record 
55.25 	of a mortgage which is effective as a financing statement filed as a fixture filing or as a 
55.26 	financing statement covering as-extracted collateral or timber to be cut under section 
55.27 	336.9-502(c). However, the recording and satisfaction fees that otherwise would be 
55.28 	applicable to the record of the mortgage apply.

55.29 	Sec. 63. Minnesota Statutes 2006, section 358.41, is amended to read:
55.30 	358.41 DEFINITIONS.
55.31 	As used in sections 358.41 to 358.49: 
55.32 	(1) "Notarial act" means any act that a notary public of this state is authorized to 
55.33 	perform, and includes taking an acknowledgment, administering an oath or affirmation, 
56.1 	taking a verification upon oath or affirmation, witnessing or attesting a signature, certifying 
56.2 	or attesting a copy, and noting a protest of a negotiable instrument. A notary public may 
56.3 	perform a notarial act by electronic means.
56.4 	(2) "Acknowledgment" means a declaration by a person that the person has executed 
56.5 	an instrument or electronic record for the purposes stated therein and, if the instrument 
56.6 	or electronic record is executed in a representative capacity, that the person signed 
56.7 	the instrument with proper authority and executed it as the act of the person or entity 
56.8 	represented and identified therein.
56.9 	(3) "Verification upon oath or affirmation" means a declaration that a statement is 
56.10 	true made by a person upon oath or affirmation.
56.11 	(4) "In a representative capacity" means:
56.12 	(i) for and on behalf of a corporation, partnership, limited liability company, trust, or 
56.13 	other entity, as an authorized officer, agent, partner, trustee, or other representative;
56.14 	(ii) as a public officer, personal representative, guardian, or other representative, 
56.15 	in the capacity recited in the instrument;
56.16 	(iii) as an attorney in fact for a principal; or
56.17 	(iv) in any other capacity as an authorized representative of another.
56.18 	(5) "Notarial officer" means a notary public or other officer authorized to perform 
56.19 	notarial acts.
56.20 	(6) "Electronic signature" means an electronic sound, symbol, or process attached 
56.21 	to or logically associated with a record and executed or adopted by a person with the 
56.22 	intent to sign the record.
56.23 	(7) "Electronic record" means a record created, generated, sent, communicated, 
56.24 	received, or stored by electronic means.

56.25 	EFFECTIVE DATE. This section is effective August 1, 2007.

56.26 	Sec. 64. Minnesota Statutes 2006, section 358.42, is amended to read:
56.27 	358.42 NOTARIAL ACTS.
56.28 	(a) In taking an acknowledgment, the notarial officer must determine, either from 
56.29 	personal knowledge or from satisfactory evidence, that the person appearing before the 
56.30 	officer and making the acknowledgment is the person whose true signature is on the 
56.31 	instrument or electronic record.
56.32 	(b) In taking a verification upon oath or affirmation, the notarial officer must 
56.33 	determine, either from personal knowledge or from satisfactory evidence, that the person 
57.1 	appearing before the officer and making the verification is the person whose true signature 
57.2 	is made in the presence of the officer on the statement verified.
57.3 	(c) In witnessing or attesting a signature the notarial officer must determine, either 
57.4 	from personal knowledge or from satisfactory evidence, that the signature is that of the 
57.5 	person appearing before the officer and named therein. When witnessing or attesting a 
57.6 	signature, the officer must be present when the signature is made.
57.7 	(d) In certifying or attesting a copy of a document, electronic record, or other item, 
57.8 	the notarial officer must determine that the proffered copy is a full, true, and accurate 
57.9 	transcription or reproduction of that which was copied.
57.10 	(e) In making or noting a protest of a negotiable instrument or electronic record the 
57.11 	notarial officer must determine the matters set forth in section 336.3-505. 
57.12 	(f) A notarial officer has satisfactory evidence that a person is the person whose true 
57.13 	signature is on a document or electronic record if that person (i) is personally known to 
57.14 	the notarial officer, (ii) is identified upon the oath or affirmation of a credible witness 
57.15 	personally known to the notarial officer, or (iii) is identified on the basis of identification 
57.16 	documents.

57.17 	EFFECTIVE DATE. This section is effective August 1, 2007.

57.18 	Sec. 65. Minnesota Statutes 2006, section 358.50, is amended to read:
57.19 	358.50 EFFECT OF ACKNOWLEDGMENT.
57.20 	An acknowledgment made in a representative capacity for and on behalf of a 
57.21 	corporation, partnership, limited liability company, trust, or other entity and certified 
57.22 	substantially in the form prescribed in this chapter is prima facie evidence that the 
57.23 	instrument or electronic record was executed and delivered with proper authority.

57.24 	EFFECTIVE DATE. This section is effective August 1, 2007.

57.25 	Sec. 66. Minnesota Statutes 2006, section 359.085, subdivision 2, is amended to read:
57.26 		Subd. 2.Verifications. In taking a verification upon oath or affirmation, the notarial 
57.27 	officer must determine, either from personal knowledge or from satisfactory evidence, that 
57.28 	the person appearing before the officer and making the verification is the person whose 
57.29 	true signature is made in the presence of the officer on the statement verified.

57.30 	EFFECTIVE DATE. This section is effective August 1, 2007.

57.31 	Sec. 67. Minnesota Statutes 2006, section 359.085, subdivision 3, is amended to read:
58.1 		Subd. 3.Witnessing or attesting signatures. In witnessing or attesting a signature, 
58.2 	the notarial officer must determine, either from personal knowledge or from satisfactory 
58.3 	evidence, that the signature is that of the person appearing before the officer and named in 
58.4 	the document or electronic record. When witnessing or attesting a signature, the officer 
58.5 	must be present when the signature is made.

58.6 	EFFECTIVE DATE. This section is effective August 1, 2007.

58.7 	Sec. 68. Minnesota Statutes 2006, section 477A.014, subdivision 4, is amended to read:
58.8 		Subd. 4.Costs. The director of the Office of Strategic and Long-Range Planning 
58.9 	shall annually bill the commissioner of revenue for one-half of the costs incurred by the 
58.10 	state demographer in the preparation of materials required by section 4A.02. The state 
58.11 	auditor shall bill the commissioner of revenue for the costs of best practices reviews 
58.12 	and the services provided by the Government Information Division and the parts of the 
58.13 	constitutional office that are related to the government information function, and for 
58.14 	the services provided by the Tax Increment Financing Investment and Finance Division 
58.15 	required by section 469.3201, not to exceed $217,000 $614,000 each fiscal year. The 
58.16 	commissioner of administration shall bill the commissioner of revenue for the costs of 
58.17 	the local government records program and the intergovernmental information systems 
58.18 	activity, not to exceed $205,800 each fiscal year. The commissioner of employee relations 
58.19 	shall bill the commissioner of revenue for the costs of administering the local government 
58.20 	pay equity function, not to exceed $55,000 each fiscal year. 

58.21 	Sec. 69. Minnesota Statutes 2006, section 491A.02, subdivision 4, is amended to read:
58.22 		Subd. 4.Representation. (a) A corporation, partnership, limited liability company, 
58.23 	sole proprietorship, or association may be represented in conciliation court by an officer, 
58.24 	manager, or partner or an agent in the case of a condominium, cooperative, or townhouse 
58.25 	association, or may appoint a natural person who is an employee or commercial property 
58.26 	manager to appear on its behalf or settle a claim in conciliation court. The state or a 
58.27 	political subdivision of the state may be represented in conciliation court by an employee 
58.28 	of the pertinent governmental unit without a written authorization. The state also may be 
58.29 	represented in conciliation court by an employee of the Division of Risk Management of 
58.30 	the Department of Administration without a written authorization. Representation under 
58.31 	this subdivision does not constitute the practice of law for purposes of section 481.02, 
58.32 	subdivision 8. In the case of an officer, employee, commercial property manager, or 
58.33 	agent of a condominium, cooperative, or townhouse association, an authorized power 
58.34 	of attorney, corporate authorization resolution, corporate bylaw, or other evidence of 
59.1 	authority acceptable to the court must be filed with the claim or presented at the hearing. 
59.2 	This subdivision also applies to appearances in district court by a corporation or limited 
59.3 	liability company with five or fewer shareholders or members and to any condominium, 
59.4 	cooperative, or townhouse association, if the action was removed from conciliation court. 
59.5 	(b) "Commercial property manager" means a corporation, partnership, or limited 
59.6 	liability company or its employees who are hired by the owner of commercial real 
59.7 	estate to perform a broad range of administrative duties at the property including tenant 
59.8 	relations matters, leasing, repairs, maintenance, the negotiation and resolution of tenant 
59.9 	disputes, and related matters. In order to appear in conciliation court, a property manager's 
59.10 	employees must possess a real estate license under section 82.20 and be authorized by the 
59.11 	owner of the property to settle all disputes with tenants and others within the jurisdictional 
59.12 	limits of conciliation court. 
59.13 	(c) A commercial property manager who is appointed to settle a claim in conciliation 
59.14 	court may not charge or collect a separate fee for services rendered under paragraph (a).

59.15 	Sec. 70. Minnesota Statutes 2006, section 507.24, subdivision 2, is amended to read:
59.16 		Subd. 2.Original signatures required. (a) Unless otherwise provided by law, an 
59.17 	instrument affecting real estate that is to be recorded as provided in this section or other 
59.18 	applicable law must contain the original signatures of the parties who execute it and of the 
59.19 	notary public or other officer taking an acknowledgment. However, a financing statement 
59.20 	that is recorded as a filing pursuant to section 336.9-502(b) need not contain: (1) the 
59.21 	signatures of the debtor or the secured party; or (2) an acknowledgment.
59.22 	(b)(1) Any electronic instruments, including signatures and seals, affecting real 
59.23 	estate may only be recorded as part of a pilot project for the electronic filing of real 
59.24 	estate documents implemented by the task force created in Laws 2000, chapter 391, or 
59.25 	by the Electronic Real Estate Recording Task Force created under section 507.094. The 
59.26 	Electronic Real Estate Recording Task Force created under section 507.094 may amend 
59.27 	standards set by the task force created in Laws 2000, chapter 391, and may set new or 
59.28 	additional standards and establish pilot projects to the full extent permitted in section 
59.29 	507.094, subdivision 2, paragraph (b). Documents recorded in conformity with those 
59.30 	standards and in those pilot projects are deemed to meet the requirements of this section. 
59.31 	(2)(i) A county that participated in the pilot project for the electronic filing of real 
59.32 	estate documents under the task force created in Laws 2000, chapter 391, may continue to 
59.33 	record or file documents electronically, if:
59.34 	(1)(A) the county complies with standards adopted by the task force; and
59.35 	(2)(B) the county uses software that was validated by the task force.
60.1 	(ii) A county that did not participate in the pilot project may record or file a real 
60.2 	estate document electronically, if:
60.3 	(i)(A) the document to be recorded or filed is of a type included in the pilot project 
60.4 	for the electronic filing of real estate documents under the task force created in Laws 
60.5 	2000, chapter 391;
60.6 	(ii)(B) the county complies with the standards adopted by the task force;
60.7 	(iii)(C) the county uses software that was validated by the task force; and
60.8 	(iv)(D) the task force created under section 507.094, votes to accept a written 
60.9 	certification of compliance with paragraph (b), clause (2), of this section by the county 
60.10 	board and county recorder of the county to implement electronic filing under this section.
60.11 	(c) Notices filed pursuant to section 168A.141, subdivisions 1 and 3, need not 
60.12 	contain an acknowledgment.

60.13 	Sec. 71. Minnesota Statutes 2006, section 517.08, subdivision 1b, is amended to read:
60.14 		Subd. 1b.Term of license; fee; premarital education. (a) The local registrar 
60.15 	shall examine upon oath the party applying for a license relative to the legality of the 
60.16 	contemplated marriage. If at the expiration of a five-day period, on being satisfied that 
60.17 	there is no legal impediment to it, including the restriction contained in section 259.13, the 
60.18 	local registrar shall issue the license, containing the full names of the parties before and 
60.19 	after marriage, and county and state of residence, with the county seal attached, and make a 
60.20 	record of the date of issuance. The license shall be valid for a period of six months. In case 
60.21 	of emergency or extraordinary circumstances, a judge of the district court of the county in 
60.22 	which the application is made, may authorize the license to be issued at any time before 
60.23 	the expiration of the five days. Except as provided in paragraph (b), the local registrar shall 
60.24 	collect from the applicant a fee of $100$110 for administering the oath, issuing, recording, 
60.25 	and filing all papers required, and preparing and transmitting to the state registrar of vital 
60.26 	statistics the reports of marriage required by this section. If the license should not be used 
60.27 	within the period of six months due to illness or other extenuating circumstances, it may 
60.28 	be surrendered to the local registrar for cancellation, and in that case a new license shall 
60.29 	issue upon request of the parties of the original license without fee. A local registrar who 
60.30 	knowingly issues or signs a marriage license in any manner other than as provided in this 
60.31 	section shall pay to the parties aggrieved an amount not to exceed $1,000.
60.32 	(b) The marriage license fee for parties who have completed at least 12 hours of 
60.33 	premarital education is $30 $40. In order to qualify for the reduced license fee, the 
60.34 	parties must submit at the time of applying for the marriage license a signed and dated 
60.35 	statement from the person who provided the premarital education confirming that it was 
61.1 	received. The premarital education must be provided by a licensed or ordained minister 
61.2 	or the minister's designee, a person authorized to solemnize marriages under section 
61.3 	517.18, or a person authorized to practice marriage and family therapy under section 
61.4 	148B.33. The education must include the use of a premarital inventory and the teaching of 
61.5 	communication and conflict management skills.
61.6 	(c) The statement from the person who provided the premarital education under 
61.7 	paragraph (b) must be in the following form:
61.8 	"I, (name of educator), confirm that (names of both parties) received at least 12 
61.9 	hours of premarital education that included the use of a premarital inventory and the 
61.10 	teaching of communication and conflict management skills. I am a licensed or ordained 
61.11 	minister, a person authorized to solemnize marriages under Minnesota Statutes, section 
61.12 	517.18, or a person licensed to practice marriage and family therapy under Minnesota 
61.13 	Statutes, section 148B.33."
61.14 	The names of the parties in the educator's statement must be identical to the legal 
61.15 	names of the parties as they appear in the marriage license application. Notwithstanding 
61.16 	section 138.17, the educator's statement must be retained for seven years, after which 
61.17 	time it may be destroyed.
61.18 	(d) If section 259.13 applies to the request for a marriage license, the local registrar 
61.19 	shall grant the marriage license without the requested name change. Alternatively, the local 
61.20 	registrar may delay the granting of the marriage license until the party with the conviction:
61.21 	(1) certifies under oath that 30 days have passed since service of the notice for a 
61.22 	name change upon the prosecuting authority and, if applicable, the attorney general and no 
61.23 	objection has been filed under section 259.13; or
61.24 	(2) provides a certified copy of the court order granting it. The parties seeking the 
61.25 	marriage license shall have the right to choose to have the license granted without the 
61.26 	name change or to delay its granting pending further action on the name change request.

61.27 	Sec. 72. Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:
61.28 		Subd. 1c.Disposition of license fee. (a) Of the marriage license fee collected 
61.29 	pursuant to subdivision 1b, paragraph (a), $15$25 must be retained by the county. The 
61.30 	local registrar must pay $85 to the commissioner of finance to be deposited as follows:
61.31 	(1) $50 in the general fund;
61.32 	(2) $3 in the special revenue fund to be appropriated to the commissioner of 
61.33 	education for parenting time centers under section 119A.37;
61.34 	(3) $2 in the special revenue fund to be appropriated to the commissioner of health 
61.35 	for developing and implementing the MN ENABL program under section 145.9255;
62.1 	(4) $25 in the special revenue fund is appropriated to the commissioner of 
62.2 	employment and economic development for the displaced homemaker program under 
62.3 	section 116L.96; and
62.4 	(5) $5 in the special revenue fund is appropriated to the commissioner of human 
62.5 	services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under 
62.6 	section 256.742.
62.7 	(b) Of the $30$40 fee under subdivision 1b, paragraph (b), $15$25 must be retained 
62.8 	by the county. The local registrar must pay $15 to the commissioner of finance to be 
62.9 	deposited as follows:
62.10 	(1) $5 as provided in paragraph (a), clauses (2) and (3); and
62.11 	(2) $10 in the special revenue fund is appropriated to the commissioner of 
62.12 	employment and economic development for the displaced homemaker program under 
62.13 	section 116L.96.
62.14 	(c) The increase in the marriage license fee under paragraph (a) provided for in Laws 
62.15 	2004, chapter 273, and disbursement of the increase in that fee to the special fund for the 
62.16 	Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a), 
62.17 	clause (5), is contingent upon the receipt of federal funding under United States Code, title 
62.18 	42, section 1315, for purposes of the initiative.

62.19 	Sec. 73. Laws 2005, chapter 156, article 2, section 45, is amended to read:
62.20 	Sec. 45. SALE OF STATE LAND.
 62.21 		Subdivision 1.State land sales. The commissioner of administration shall 
62.22 	coordinate with the head of each department or agency having control of state-owned land 
62.23 	to identify and sell at least $6,440,000 of state-owned land. Sales should be completed 
62.24 	according to law and as provided in this section as soon as practicable but no later than 
62.25 	June 30, 2007 2009. Notwithstanding Minnesota Statutes, sections 16B.281 and 16B.282, 
62.26 	94.09 and 94.10, or any other law to the contrary, the commissioner may offer land 
62.27 	for public sale by only providing notice of lands or an offer of sale of lands to state 
62.28 	departments or agencies, the University of Minnesota, cities, counties, towns, school 
62.29 	districts, or other public entities.
62.30 		Subd. 2.Anticipated savings. Notwithstanding Minnesota Statutes, section 
62.31 	94.16, subdivision 3, or other law to the contrary, the amount of the proceeds from the 
62.32 	sale of land under this section that exceeds the actual expenses of selling the land must 
62.33 	be deposited in the general fund, except as otherwise provided by the commissioner of 
62.34 	finance. Notwithstanding Minnesota Statutes, section 94.11 or 16B.283, the commissioner 
62.35 	of finance may establish the timing of payments for land purchased under this section. If 
63.1 	the total of all money deposited into the general fund from the proceeds of the sale of land 
63.2 	under this section is anticipated to be less than $6,440,000, the governor must allocate the 
63.3 	amount of the difference as reductions to general fund operating expenditures for other 
63.4 	executive agencies for the biennium ending June 30, 2007 2009.
63.5 		Subd. 3.Sale of state lands revolving loan fund. $290,000 is appropriated from 
63.6 	the general fund in fiscal year 2006 to the commissioner of administration for purposes 
63.7 	of paying the actual expenses of selling state-owned lands to achieve the anticipated 
63.8 	savings required in this section. From the gross proceeds of land sales under this section, 
63.9 	the commissioner of administration must cancel the amount of the appropriation in this 
63.10 	subdivision to the general fund by June 30, 20072009.

63.11 	Sec. 74. Laws 2006, chapter 253, section 22, subdivision 1, is amended to read:
63.12 		Subdivision 1. Genetic information; work group. (a) The commissioner must 
63.13 	create a work group to develop principles for public policy on the use of genetic 
63.14 	information. The work group must include representatives of state government, including 
63.15 	the judicial branch, local government, prosecutors, public defenders, the American Civil 
63.16 	Liberties Union - Minnesota, the Citizens Council on Health Care, the University of 
63.17 	Minnesota Center on Bioethics, the Minnesota Medical Association, the Mayo Clinic 
63.18 	and Foundation, the March of Dimes, and representatives of employers, researchers, 
63.19 	epidemiologists, laboratories, and insurance companies.
63.20 	(b) The commissioner of administration and the work group must conduct reviews 
63.21 	of the topics in paragraphs (c) to (f), in light of the issues raised in the report on treatment 
63.22 	of genetic information under state law required by Laws 2005, chapter 163, section 87. 
63.23 	The commissioner must report the results, including any recommendations for legislative 
63.24 	changes, to the chairs of the house Civil Law Committee and the senate Judiciary 
63.25 	Committee and the ranking minority members of those committees by January 15, 2008
63.26 	2009.
63.27 	(c) The commissioner and the work group must determine whether changes are 
63.28 	needed in Minnesota Statutes, section 144.69, dealing with collection of information 
63.29 	from cancer patients and their relatives.
63.30 	(d) The commissioner and the work group must make recommendations whether 
63.31 	all relatives affected by a formal three-generation pedigree created by the Department of 
63.32 	Health should be able to access the entire data set, rather than only allowing individuals 
63.33 	access to the data of which they are the subject.
64.1 	(e) The commissioner and the work group must identify, and may make 
64.2 	recommendations among, options for resolving questions of secondary uses of genetic 
64.3 	information.
64.4 	(f) The commissioner and the work group must make recommendations whether 
64.5 	legislative changes are needed regarding access to DNA test results and the specimens 
64.6 	used to create the test results held by the Bureau of Criminal Apprehension as part of 
64.7 	a criminal investigation.

64.8 	Sec. 75. Laws 2006, chapter 282, article 14, section 5, is amended to read:

64.964.10
	Sec. 5. OFFICE OF ADMINISTRATIVE 
HEARINGS
 				320,000
	
64.11 	From the workers' compensation fund for 
64.12 	costs associated with the relocation of 
64.13 	offices to St. Paul. The commissioner 
64.14 	of administration shall take all steps as 
64.15 	necessary to complete the renovation of 
64.16 	the Stassen Building for these purposes by 
64.17 	January 1, 2008. Minnesota Statutes, section 
64.18 	16B.33, subdivision 3, does not apply if 
64.19 	the estimated cost of construction exceeds 
64.20 	$2,000,000. This is a onetime appropriation.
64.21 	This appropriation is available until spent.
64.22 	Beginning in fiscal year 2009 and for all 
64.23 	fiscal years thereafter, the appropriation base 
64.24 	for the workers' compensation fund for the 
64.25 	Office of Administrative Hearings is reduced 
64.26 	by $297,000 to reflect savings in rent costs 
64.27 	due to the relocation of offices to St. Paul.

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

64.29 	Sec. 76. FORD BUILDING.
 64.30 	The Ford Building at 117 University Avenue in St. Paul may not be demolished 
64.31 	during the biennium ending June 30, 2009.

64.32 	Sec. 77. ELECTRONIC DOCUMENTS STUDY AND REPORT.
 65.1 		Subdivision 1.Study. The chief information officer of the state, in consultation with 
65.2 	the state archivist and legislative reference librarian, shall study how electronic documents 
65.3 	and the mechanisms and processes for accessing and reading electronic data can be created, 
65.4 	maintained, exchanged, and preserved by the state in a manner that encourages appropriate 
65.5 	government control, access, choice, and interoperability. The study must consider, but 
65.6 	not be limited to, the policies of other states and nations, management guidelines for state 
65.7 	archives as they pertain to electronic documents, public access to information, expected 
65.8 	storage life of electronic documents, costs of implementation, and potential savings. The 
65.9 	chief information officer shall solicit comments from stakeholders, including, but not 
65.10 	limited to, the legislative auditor, attorney general, librarians, state services for the blind, 
65.11 	representatives of the Minnesota Historical Society, other historians, and the media. The 
65.12 	chief information officer shall also solicit comments from members of the public.
65.13 		Subd. 2.Report and recommendations. The chief information officer shall 
65.14 	report the officer's findings and recommendations to the chairs of the senate State and 
65.15 	Local Government Operations and Oversight Committee; the house of representatives 
65.16 	Government Operations, Reform, Technology and Elections Committee; and the senate 
65.17 	and house of representatives State Government Finance Divisions by January 15, 2008.

65.18 	Sec. 78. STATE EMPLOYEES ELECTRONIC HEALTH RECORDS PILOT 
65.19 	PROJECT.
 65.20 		Subdivision 1.Project established. The Minnesota State Colleges and Universities 
65.21 	Board of Trustees (MnSCU), in collaboration with the commissioner of employee 
65.22 	relations may establish an enterprise-wide pilot project to provide consumer-owned 
65.23 	electronic personal health records to MnSCU employees and all participants in the state 
65.24 	employee group insurance program.
65.25 		Subd. 2.Project goals. The goal of the project is to provide consumer-owned 
65.26 	electronic personal health records that are portable among health care providers, health 
65.27 	plan companies, and employers in order to control costs, improve quality, and enhance 
65.28 	safety, and to demonstrate the feasibility of a statewide health information exchange. The 
65.29 	electronic personal health records may provide, but are not limited to, the following: 
65.30 	(1) access to electronic medical records;
65.31 	(2) prescription and appointment information;
65.32 	(3) information regarding health education, public health, and health cost 
65.33 	management; and
65.34 	(4) privacy, security, and compliance with HIPAA; Minnesota Statutes, chapter 13; 
65.35 	Minnesota Statutes, section 144.335; and other state law related to data privacy.

66.1 	Sec. 79. TRAINING SERVICES.
 66.2 	During the biennium ending June 30, 2009, state executive branch agencies must 
66.3 	consider using services provided by government training services before contracting with 
66.4 	other outside vendors for similar services.

66.5 	Sec. 80. DEPARTMENT OF EMPLOYEE RELATIONS ABOLISHED; DUTIES 
66.6 	TRANSFERRED.
 66.7 	(a) The Department of Employee Relations and the position of the commissioner 
66.8 	of employee relations are abolished as of June 1, 2008. Duties of the Department of 
66.9 	Employee Relations and the commissioner of employee relations are transferred on or 
66.10 	before June 1, 2008, to the commissioner of finance, except as follows:
66.11 	(1) duties relating to administration of the state employees workers' compensation 
66.12 	program are transferred on or before June 1, 2008, to the commissioner of administration; 
66.13 	and
66.14 	(2) duties relating to health care purchasing improvement under Minnesota Statutes, 
66.15 	section 43A.312, are transferred on or before June 1, 2008, to the commissioner of health.
66.16 	(b) The commissioner of employee relations, in consultation with the commissioner 
66.17 	of finance, may specify one or more dates before June 1, 2008, on which any or all of the 
66.18 	transfers provided in paragraph (a) will occur.
66.19 	(c) The governor may, in consultation with the commissioner of employee relations, 
66.20 	the commissioner of finance, the commissioner of administration, and the director of the 
66.21 	Office of Enterprise Technology, transfer other duties of the Department of Employee 
66.22 	Relations to other state agencies in order to most effectively and efficiently accomplish the 
66.23 	reorganization required by this act.
66.24 	(d) Transfer of duties under this section is subject to Minnesota Statutes, section 
66.25 	15.039.
66.26 	(e) In addition to any other protection, no employee in the classified service shall 
66.27 	suffer job loss, have a salary reduced, or have employment benefits reduced as a result of 
66.28 	a reorganization mandated or recommended under authority of this section. No action 
66.29 	taken after June 1, 2009, shall be considered a result of reorganization for the purposes 
66.30 	of this section.

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

66.32 	Sec. 81. STATE BUDGET TRENDS STUDY COMMISSION.
 66.33 	(a) The State Budget Trends Study Commission is established for the purpose 
66.34 	of completing a study of the implications of state demographic trends for future state 
67.1 	budget conditions, including both expected revenue collections and spending for state 
67.2 	government services and local services supported by state revenues. The commission 
67.3 	shall consist of 15 public members, including five members appointed by the governor; 
67.4 	five members appointed by the senate Subcommittee on Committees of the Committee 
67.5 	on Rules and Administration; four members appointed by the speaker of the house of 
67.6 	representatives; and one member appointed by the minority leader of the house of 
67.7 	representatives. The respective appointing authorities must complete their appointments 
67.8 	under this section within 30 days of the effective date of this section. The commissioner of 
67.9 	finance must convene the commission within 30 days of the completion of appointments 
67.10 	under this section. The members shall select their chair at the first meeting. When making 
67.11 	appointments under this section, the appointing authorities must consider the education 
67.12 	and expertise of appointees in fields such as public finance, demography, and public 
67.13 	administration.
67.14 	(b) Per diem and expense payments to members, removal of members, and vacancies 
67.15 	are governed by Minnesota Statutes, section 15.059. 
67.16 	(c) The commissioners of finance and revenue must provide data, analysis, and staff 
67.17 	support required by the commission to complete the study, including, but not limited to, 
67.18 	the effect of expected demographic changes over the next 25 years on state tax bases and 
67.19 	on existing state programs and appropriations. In preparing the study, the commission 
67.20 	shall consult with and use the services of the state demographer to estimate the changing 
67.21 	profile of the Minnesota population by age and other factors relevant to the study. The 
67.22 	commission may also contract with appropriate consultants and experts as needed to 
67.23 	complete the study.
67.24 	(d) In completing the study, the commission must consider:
67.25 	(1) the effect of expected demographic changes over the next 25 years on the tax 
67.26 	base and revenue collections for state income and sales tax, or other state taxes;
67.27 	(2) estimates of tax revenue collections for the years 2012, 2017, 2022, 2027, and 
67.28 	2032, taking into account the sensitivity of the results for changes in estimated migration 
67.29 	rates, labor force participation by older individuals, and other shares of capital versus labor;
67.30 	(3) the effect of demographic trends on entitlement programs and other large state 
67.31 	appropriations relative to current budget commitments;
67.32 	(4) relative trends in spending for state programs including trends identified in the 
67.33 	fast growing expenditures report completed under Minnesota Statutes, section 16A.103, 
67.34 	subdivision 4; and
67.35 	(5) the structure of the state budget with regard to budget stability and flexibility.
68.1 	(e) The commission may make recommendations for state tax or budget policy 
68.2 	changes, including recommendations for changes in tax base, mix of tax types, state 
68.3 	and local finance relationships, entitlements, or budget structure. The commission shall 
68.4 	present preliminary results to the chairs of the legislative committees with jurisdiction 
68.5 	over finance and taxes by February 1, 2008, and a final written report to the same chairs by 
68.6 	January 15, 2009, in compliance with Minnesota Statutes, sections 3.195 and 3.197. 
68.7 	(f) This section expires on June 30, 2009.

68.8 	Sec. 82. FINANCING OF ELECTRONIC LICENSING SYSTEM.
 68.9 	The state chief information officer shall study the feasibility of alternative financing 
68.10 	options for the purpose of developing and maintaining an electronic system for business 
68.11 	and occupational licenses. The chief information officer must report the results of the 
68.12 	study to the chairs of the senate State Government Budget Division and the house of 
68.13 	representatives State Government Finance Division by January 15, 2008.

68.14 	Sec. 83. REVISOR'S INSTRUCTION.
 68.15 	In the next and subsequent editions of Minnesota Statutes and Minnesota Rules, the 
68.16 	revisor of statutes must replace references to the Department of Employee Relations and 
68.17 	commissioner of employee relations with references to the appropriate department and 
68.18 	commissioner specified in section 80. The revisor of statutes, in consultation with affected 
68.19 	commissioners of state agencies, must prepare a bill for introduction in the 2008 legislative 
68.20 	session making other statutory changes needed to implement or conform with section 80.

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

68.22 	Sec. 84. REPEALER.
 68.23 	Minnesota Statutes 2006, sections 16A.102, subdivisions 1, 2, and 3; 16C.055, 
68.24 	subdivision 1; 16C.08, subdivision 4a; 69.051, subdivision 1c; and 359.085, subdivision 
68.25 	8, are repealed.

68.26 	ARTICLE 3
68.27 	BEST VALUE CONTRACTS

68.28 	Section 1. Minnesota Statutes 2006, section 16C.02, is amended by adding a 
68.29 	subdivision to read:
68.30 		Subd. 4a.Best value; construction. For purposes of construction, building, 
68.31 	alteration, improvement, or repair services, "best value" describes the result determined by 
69.1 	a procurement method that considers price and performance criteria, which may include, 
69.2 	but are not limited to:
69.3 	(1) the quality of the vendor's or contractor's performance on previous projects;
69.4 	(2) the timeliness of the vendor's or contractor's performance on previous projects;
69.5 	(3) the level of customer satisfaction with the vendor's or contractor's performance 
69.6 	on previous projects; 
69.7 	(4) the vendor's or contractor's record of performing previous projects on budget and 
69.8 	ability to minimize cost overruns;
69.9 	(5) the vendor's or contractor's ability to minimize change orders;
69.10 	(6) the vendor's or contractor's ability to prepare appropriate project plans;
69.11 	(7) the vendor's or contractor's technical capacities;
69.12 	(8) the individual qualifications of the contractor's key personnel; or
69.13 	(9) the vendor's or contractor's ability to assess and minimize risks.
69.14 	"Performance on previous projects" does not include the exercise or assertion of a 
69.15 	person's legal rights. This definition does not apply to sections 16C.32, 16C.33, 16C.34, 
69.16 	and 16C.35.

69.17 	Sec. 2. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision 
69.18 	to read:
69.19 		Subd. 20.Vendor. "Vendor" means a business, including a construction contractor 
69.20 	or a natural person, and includes both if the natural person is engaged in a business.

69.21 	Sec. 3. Minnesota Statutes 2006, section 16C.03, subdivision 3, is amended to read:
69.22 		Subd. 3.Acquisition authority. The commissioner shall acquire all goods, services, 
69.23 	and utilities needed by agencies. The commissioner shall acquire goods, services, and 
69.24 	utilities by requests for bids, requests for proposals, reverse auctions as provided in 
69.25 	section 16C.10, subdivision 7, or other methods provided by law, unless a section of law 
69.26 	requires a particular method of acquisition to be used. The commissioner shall make all 
69.27 	decisions regarding acquisition activities. The determination of the acquisition method 
69.28 	and all decisions involved in the acquisition process, unless otherwise provided for by 
69.29 	law, shall be based on best value which includes an evaluation of price and may include 
69.30 	other considerations including, but not limited to, environmental considerations, quality, 
69.31 	and vendor performance. A best value determination must be based on the evaluation 
69.32 	criteria detailed in the solicitation document. If criteria other than price are used, the 
69.33 	solicitation document must state the relative importance of price and other factors. Unless 
69.34 	it is determined by the commissioner that an alternative solicitation method provided by 
70.1 	law should be used to determine best value, a request for bid must be used to solicit 
70.2 	formal responses for all building and construction contracts. Any or all responses may 
70.3 	be rejected. When using the request for bid process, the bid must be awarded to the 
70.4 	lowest responsive and responsible bidder, taking into consideration conformity with 
70.5 	the specifications, terms of delivery, the purpose for which the contract or purchase is 
70.6 	intended, the status and capability of the vendor, and other considerations imposed in the 
70.7 	request for bids. The commissioner may decide which is the lowest responsible bidder 
70.8 	for all purchases and may use the principles of life-cycle costing, where appropriate, in 
70.9 	determining the lowest overall bid. The duties set forth in this subdivision are subject to 
70.10 	delegation pursuant to this section. 

70.11 	Sec. 4. Minnesota Statutes 2006, section 16C.03, is amended by adding a subdivision 
70.12 	to read:
70.13 		Subd. 3a.Acquisition authority; construction contracts. For all building and 
70.14 	construction contracts, the commissioner shall award contracts pursuant to section 
70.15 	16C.28, and "best value" shall be defined and applied as set forth in sections 16C.02, 
70.16 	subdivision 4a, and 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c). 
70.17 	The duties set forth in this subdivision are subject to delegation pursuant to this section. 
70.18 	The commissioner shall establish procedures for developing and awarding best value 
70.19 	requests for proposals for construction projects. The criteria to be used to evaluate the 
70.20 	proposals must be included in the solicitation document and must be evaluated in an open 
70.21 	and competitive manner.

70.22 	Sec. 5. Minnesota Statutes 2006, section 16C.03, is amended by adding a subdivision 
70.23 	to read:
70.24 		Subd. 19.Training. Any personnel administering procurement procedures for a 
70.25 	user of best value procurement or any consultant retained by a local unit of government to 
70.26 	prepare or evaluate solicitation documents must be trained, either by the department or 
70.27 	through other training, in the request for proposals process for best value contracting for 
70.28 	construction projects. The commissioner may establish a training program for state and 
70.29 	local officials, and vendors and contractors, on best value procurement for construction 
70.30 	projects, including those governed by section 16C.28. If the commissioner establishes 
70.31 	such a training program, the state may charge a fee for providing training.

70.32 	Sec. 6. Minnesota Statutes 2006, section 16C.26, is amended to read:
70.33 	16C.26 COMPETITIVE BIDS OR PROPOSALS.
71.1 		Subdivision 1.Application. Except as otherwise provided by sections 16C.10,
71.2 	16C.26 and 16C.27, all contracts for building and construction or repairs must be based on 
71.3 	competitive bids or proposals. "Competitive proposals" specifically refers to the method 
71.4 	of procurement described in section 16C.28, subdivision 1, paragraph (a), clause (2), 
71.5 	and paragraph (c). 
71.6 		Subd. 2.Requirement contracts. Standard requirement price contracts for building 
71.7 	and construction must be established by competitive bids as provided in subdivision 1. 
71.8 	The standard requirement price contracts may contain escalation clauses and may provide 
71.9 	for a negotiated price increase or decrease based upon a demonstrable industrywide or 
71.10 	regional increase or decrease in the vendor's costs or for the addition of similar products or 
71.11 	replacement items not significant to the total value of existing contracts. The term of these 
71.12 	contracts may not exceed five years including all extensions.
71.13 		Subd. 3.Publication of notice; expenditures over $25,000. If the amount of an 
71.14 	expenditure is estimated to exceed $25,000, bids or proposals must be solicited by public 
71.15 	notice in a manner designated by the commissioner. To the extent practical, this must 
71.16 	include posting on a state Web site. For expenditures over $50,000, when a call for bids is 
71.17 	issued, the commissioner shall solicit sealed bids by providing notices to all prospective 
71.18 	bidders known to the commissioner by posting notice on a state Web site at least seven 
71.19 	days before the final date of submitting bids. All bids over $50,000 must be sealed when 
71.20 	they are received and must be opened in public at the hour stated in the notice. All 
71.21 	proposals responsive to a request for proposals according to section 16C.28, subdivision 
71.22 	1, paragraph (a), clause (2), and paragraph (c), shall be submitted and evaluated in the 
71.23 	manner described in the request for proposals, regardless of the dollar amount. All original 
71.24 	bids and proposals and all documents pertaining to the award of a contract must be retained 
71.25 	and made a part of a permanent file or record and remain open to public inspection.
71.26 		Subd. 4.Building and construction contracts; $50,000 or less. An informal bid 
71.27 	may be used for building, construction, and repair contracts that are estimated at less than 
71.28 	$50,000. Informal bids must be authenticated by the bidder in a manner specified by the 
71.29 	commissioner. Alternatively, a request for proposals may be issued according to section 
71.30 	16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c), for such contracts.
71.31 		Subd. 5.Standard specifications, security. Contracts must be based on the 
71.32 	standard specifications prescribed and enforced by the commissioner under this chapter, 
71.33 	unless otherwise expressly provided or as authorized under section 16C.28, subdivision 
71.34 	1, paragraph (a), clause (2), and paragraph (c). Each bidder for a contract vendor or 
71.35 	contractor must furnish security approved by the commissioner to ensure the making of 
71.36 	the contract being bid for.
72.1 		Subd. 6.Noncompetitive bids. Agencies are encouraged to contract with small 
72.2 	targeted group businesses designated under section 16C.16 when entering into contracts 
72.3 	that are not subject to competitive bidding procedures. 

72.4 	Sec. 7. Minnesota Statutes 2006, section 16C.27, subdivision 1, is amended to read:
72.5 		Subdivision 1.Single source of supply. Competitive bidding is or proposals are not 
72.6 	required for contracts clearly and legitimately limited to a single source of supply, and the 
72.7 	contract price may be best established by direct negotiation.

72.8 	Sec. 8. Minnesota Statutes 2006, section 16C.28, is amended to read:
72.9 	16C.28 CONTRACTS; AWARD.
72.10 		Subdivision 1.Lowest responsible bidder Award requirements. (a) All state 
72.11 	building and construction contracts entered into by or under the supervision of the 
72.12 	commissioner or an agency for which competitive bids or proposals are required must 
72.13 	be awarded to the lowest responsible bidder, taking into consideration conformity with 
72.14 	the specifications, terms of delivery, the purpose for which the contract is intended, the 
72.15 	status and capability of the vendor, and other considerations imposed in the call for bids. 
72.16 	The commissioner may decide which is the lowest responsible bidder for all contracts 
72.17 	and may use the principles of life cycle costing, where appropriate, in determining the 
72.18 	lowest overall bid. The head of the interested agency shall make the decision, subject 
72.19 	to the approval of the commissioner. Any or all bids may be rejected. In a case where 
72.20 	competitive bids are required and where all bids are rejected, new bids, if solicited, must 
72.21 	be called for as in the first instance, unless otherwise provided by law. may be awarded to 
72.22 	either of the following:
72.23 	(1) the lowest responsible bidder, taking into consideration conformity with the 
72.24 	specifications, terms of delivery, the purpose for which the contract is intended, the status 
72.25 	and capability of the vendor or contractor, other considerations imposed in the call for 
72.26 	bids, and, where appropriate, principles of life-cycle costing; or
72.27 	(2) the vendor or contractor offering the best value, taking into account the 
72.28 	specifications of the request for proposals, the price and performance criteria as set forth 
72.29 	in section 16C.02, subdivision 4a, and described in the solicitation document.
72.30 	(b) The vendor or contractor must secure bonding, commercial general insurance 
72.31 	coverage, and workers' compensation insurance coverage under paragraph (a), clause 
72.32 	(1) or (2). The commissioner shall determine whether to use the procurement process 
72.33 	described in paragraph (a), clause (1), or the procurement process described in paragraph 
72.34 	(a), clause (2), and paragraph (c). If the commissioner uses the method in paragraph 
73.1 	(a), clause (2), and paragraph (c), the head of the agency shall determine which vendor 
73.2 	or contractor offers the best value, subject to the approval of the commissioner. Any 
73.3 	or all bids or proposals may be rejected.
73.4 	(c) When using the procurement process described in subdivision 1, paragraph (a), 
73.5 	clause (2), the solicitation document must state the relative weight of price and other 
73.6 	selection criteria. The award must be made to the vendor or contractor offering the 
73.7 	best value applying the weighted selection criteria. If an interview of the vendor's or 
73.8 	contractor's personnel is one of the selection criteria, the relative weight of the interview 
73.9 	shall be stated in the solicitation document and applied accordingly.
73.10 		Subd. 1a.Establishment and purpose. (a) The state recognizes the importance of 
73.11 	the inclusion of a best value contracting system for construction as an alternative to the 
73.12 	current low-bid system of procurement. In order to accomplish that goal, state and local 
73.13 	governmental entities shall be able to choose the best value system in different phases.
73.14 	(b) "Best value" means the procurement method defined in section 16C.02, 
73.15 	subdivision 4a.
73.16 	(c) The following entities are eligible to participate in phase I:  
73.17 	(1) state agencies; 
73.18 	(2) counties;
73.19 	(3) cities; and
73.20 	(4) school districts with the highest 25 percent enrollment of students in the state.
73.21 	Phase I begins on the effective date of this section.
73.22 	(d) The following entities are eligible to participate in phase II:
73.23 	(1)  those entities included in phase I; and 
73.24 	(2)  school districts with the highest 50 percent enrollment of students in the state. 
73.25 	Phase II begins two years from the effective date of this section.
73.26 	(e) The following entities are eligible to participate in phase III: 
73.27 	(1)  all entities included in phases I and II; and 
73.28 	(2)  all other townships, school districts, and political subdivisions in the state. 
73.29 	Phase III begins three years from the effective date of this section.
73.30 	(f) The commissioner or any agency for which competitive bids or proposals are 
73.31 	required may not use best value contracting as defined in section 16C.02, subdivision 4a, 
73.32 	for more than one project annually, or 20 percent of its projects, whichever is greater, in 
73.33 	each of the first three fiscal years in which best value construction contracting is used.
73.34 		Subd. 2.Alterations and erasures. A bid containing an alteration or erasure of 
73.35 	any price contained in the bid which is used in determining the lowest responsible bid 
74.1 	must be rejected unless the alteration or erasure is corrected in a manner that is clear and 
74.2 	authenticated by an authorized representative of the responder. An alteration or erasure 
74.3 	may be crossed out and the correction printed in ink or typewritten adjacent to it and 
74.4 	initialed by an authorized representative of the responder.
74.5 		Subd. 3.Special circumstances. The commissioner may reject the bid or proposal 
74.6 	of any bidder vendor or contractor who has failed to perform a previous contract with 
74.7 	the state. In the case of identical low bids from two or more bidders, the commissioner 
74.8 	may use negotiated procurement methods with the tied low bidders for that particular 
74.9 	transaction so long as the price paid does not exceed the low tied bid price. The 
74.10 	commissioner may award contracts to more than one bidder vendor or contractor in 
74.11 	accordance with subdivision 1, if doing so does not decrease the service level or diminish 
74.12 	the effect of competition.
74.13 		Subd. 4.Record. A record must be kept of all bids or proposals, including names of 
74.14 	bidders, amounts of bids or proposals, and each successful bid or proposal. This record is 
74.15 	open to public inspection, subject to section 13.591 and other applicable law.
74.16 		Subd. 5.Preferences not cumulative. The preferences under sections 16B.121, 
74.17 	16C.06, subdivision 7, and 16C.16 apply, but are not cumulative. The total percentage 
74.18 	of preference granted on a contract may not exceed the highest percentage of preference 
74.19 	allowed for that contract under any one of those sections. 

74.20 	Sec. 9. Minnesota Statutes 2006, section 103D.811, subdivision 3, is amended to read:
74.21 		Subd. 3.Awarding of contract. (a) At a time and place specified in the bid notice, 
74.22 	the managers may accept or reject any or all bids and may award the contract to the lowest 
74.23 	responsible bidder. The bidder to whom the contract is to be awarded must give a bond, 
74.24 	with ample security, conditioned by satisfactory completion of the contract.
74.25 	(b) Bids must not be considered which in the aggregate exceed by more than 30 
74.26 	percent the total estimated cost of construction or implementation.
74.27 	(c) As an alternative to the procurement method described in paragraph (a), the 
74.28 	managers may issue a request for proposals and award the contract to the vendor or 
74.29 	contractor offering the best value as described in section 16C.28, subdivision 1, paragraph 
74.30 	(a), clause (2), and paragraph (c).
74.31 	(d) The contract must be in writing and be accompanied by or refer to the plans and 
74.32 	specifications for the work to be done as prepared by the engineer for the watershed 
74.33 	district. The plans and specifications shall become a part of the contract.
74.34 	(d)(e) The contract shall be approved by the managers and signed by the president, 
74.35 	secretary, and contractor.

75.1 	Sec. 10. Minnesota Statutes 2006, section 103E.505, subdivision 5, is amended to read:
75.2 		Subd. 5.How contract may be awarded. The contract may be awarded in one 
75.3 	job, in sections, or separately for labor and material and mustmay be let to the lowest 
75.4 	responsible bidder. Alternatively, the contract may be awarded to the vendor or contractor 
75.5 	offering the best value under a request for proposals as described in section 16C.28, 
75.6 	subdivision 1, paragraph (a), clause (2), and paragraph (c).

75.7 	Sec. 11. Minnesota Statutes 2006, section 116A.13, subdivision 5, is amended to read:
75.8 		Subd. 5.How job may be let. The job may be let in one job, or in sections, or 
75.9 	separately for labor and material, and shallmay be let to the lowest responsible bidder or 
75.10 	bidders therefor. Alternatively, the contract may be awarded to the vendor or contractor 
75.11 	offering the best value under a request for proposals as described in section 16C.28, 
75.12 	subdivision 1, paragraph (a), clause (2), and paragraph (c).

75.13 	Sec. 12. Minnesota Statutes 2006, section 123B.52, subdivision 1, is amended to read:
75.14 		Subdivision 1.Contracts. A contract for work or labor, or for the purchase of 
75.15 	furniture, fixtures, or other property, except books registered under the copyright laws, or 
75.16 	for the construction or repair of school houses, the estimated cost or value of which shall 
75.17 	exceed that specified in section 471.345, subdivision 3, must not be made by the school 
75.18 	board without first advertising for bids or proposals by two weeks' published notice in the 
75.19 	official newspaper. This notice must state the time and place of receiving bids and contain 
75.20 	a brief description of the subject matter. 
75.21 	Additional publication in the official newspaper or elsewhere may be made as the 
75.22 	board shall deem necessary.
75.23 	After taking into consideration conformity with the specifications, terms of delivery, 
75.24 	and other conditions imposed in the call for bids, every such contract for which a call for 
75.25 	bids has been issued must be awarded to the lowest responsible bidder, be duly executed 
75.26 	in writing, and be otherwise conditioned as required by law. The person to whom the 
75.27 	contract is awarded shall give a sufficient bond to the board for its faithful performance. 
75.28 	Notwithstanding section 574.26 or any other law to the contrary, on a contract limited 
75.29 	to the purchase of a finished tangible product, a board may require, at its discretion, a 
75.30 	performance bond of a contractor in the amount the board considers necessary. A record 
75.31 	must be kept of all bids, with names of bidders and amount of bids, and with the successful 
75.32 	bid indicated thereon. A bid containing an alteration or erasure of any price contained in 
75.33 	the bid which is used in determining the lowest responsible bid must be rejected unless the 
75.34 	alteration or erasure is corrected as provided in this section. An alteration or erasure may 
76.1 	be crossed out and the correction thereof printed in ink or typewritten adjacent thereto and 
76.2 	initialed in ink by the person signing the bid. In the case of identical low bids from two or 
76.3 	more bidders, the board may, at its discretion, utilize negotiated procurement methods 
76.4 	with the tied low bidders for that particular transaction, so long as the price paid does not 
76.5 	exceed the low tied bid price. In the case where only a single bid is received, the board 
76.6 	may, at its discretion, negotiate a mutually agreeable contract with the bidder so long as 
76.7 	the price paid does not exceed the original bid. If no satisfactory bid is received, the 
76.8 	board may readvertise. Standard requirement price contracts established for supplies or 
76.9 	services to be purchased by the district must be established by competitive bids. Such 
76.10 	standard requirement price contracts may contain escalation clauses and may provide for a 
76.11 	negotiated price increase or decrease based upon a demonstrable industrywide or regional 
76.12 	increase or decrease in the vendor's costs. Either party to the contract may request that the 
76.13 	other party demonstrate such increase or decrease. The term of such contracts must not 
76.14 	exceed two years with an option on the part of the district to renew for an additional two 
76.15 	years. Contracts for the purchase of perishable food items, except milk for school lunches 
76.16 	and vocational training programs, in any amount may be made by direct negotiation 
76.17 	by obtaining two or more written quotations for the purchase or sale, when possible, 
76.18 	without advertising for bids or otherwise complying with the requirements of this section 
76.19 	or section 471.345, subdivision 3. All quotations obtained shall be kept on file for a 
76.20 	period of at least one year after receipt. 
76.21 	Every contract made without compliance with the provisions of this section shall be 
76.22 	void. Except in the case of the destruction of buildings or injury thereto, where the public 
76.23 	interest would suffer by delay, contracts for repairs may be made without advertising 
76.24 	for bids.

76.25 	Sec. 13. Minnesota Statutes 2006, section 123B.52, is amended by adding a 
76.26 	subdivision to read:
76.27 		Subd. 1b.Best value alternative. As an alternative to the procurement method 
76.28 	described in subdivision 1, a contract for construction, building, alteration, improvement, 
76.29 	or repair work may be awarded to the vendor or contractor offering the best value under a 
76.30 	request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause 
76.31 	(2), and paragraph (c).

76.32 	Sec. 14. Minnesota Statutes 2006, section 160.17, is amended by adding a subdivision 
76.33 	to read:
77.1 		Subd. 2a.Best value alternative. As an alternative to the procurement method 
77.2 	referenced in subdivision 2, counties or towns may issue a request for proposal and award 
77.3 	the contract to the vendor or contractor offering the best value as described in section 
77.4 	16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

77.5 	Sec. 15. Minnesota Statutes 2006, section 160.262, is amended by adding a subdivision 
77.6 	to read:
77.7 		Subd. 5.Best value alternative. As an alternative to the procurement method 
77.8 	described in subdivision 4, the commissioner may allow for the award of design-build 
77.9 	contracts for the projects described in subdivision 4 to the vendor or contractor offering 
77.10 	the best value under a request for proposals as described in section 16C.28, subdivision 1, 
77.11 	paragraph (a), clause (2), and paragraph (c).

77.12 	Sec. 16. Minnesota Statutes 2006, section 161.32, is amended by adding a subdivision 
77.13 	to read:
77.14 		Subd. 1f.Best value alternative. As an alternative to the procurement method 
77.15 	described in subdivisions 1a to 1e, the commissioner may issue a request for proposals 
77.16 	and award the contract to the vendor or contractor offering the best value as described in 
77.17 	section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

77.18 	Sec. 17. [161.3206] BEST VALUE CONTRACTING AUTHORITY.
77.19 	Notwithstanding sections 16C.25, 161.32, 161.321, or any other law to the contrary, 
77.20 	the commissioner may solicit and award all contracts, other than design-build contracts 
77.21 	governed by section 161.3412, for a project on the basis of a best value selection process 
77.22 	as defined in section 16C.02, subdivision 4a. Section 16C.08 does not apply to this section.

77.23 	Sec. 18. Minnesota Statutes 2006, section 161.3412, subdivision 1, is amended to read:
77.24 		Subdivision 1.Best value selection for design-build contracts. Notwithstanding 
77.25 	sections 16C.25, 161.32, and 161.321, or any other law to the contrary, the commissioner 
77.26 	may solicit and award a design-build contract for a project on the basis of a best value 
77.27 	selection process. Section 16C.08 does not apply to design-build contracts to which the 
77.28 	commissioner is a party. 

77.29 	Sec. 19. Minnesota Statutes 2006, section 161.38, subdivision 4, is amended to read:
77.30 		Subd. 4.Effects on other law of public contract with commissioner. Whenever 
77.31 	the road authority of any city enters into an agreement with the commissioner pursuant 
78.1 	to this section, and a portion of the cost is to be assessed against benefited property, 
78.2 	the letting of a public contract by the commissioner for the work shall be deemed to 
78.3 	comply with statutory or charter provisions requiring the city (1) to advertise for bids 
78.4 	before awarding a contract for a public improvement, (2) to let the contract to the lowest 
78.5 	responsible bidder or to the vendor or contractor offering the best value, and (3) to require 
78.6 	a performance bond to be filed by the contractor before undertaking the work. The 
78.7 	contract so let by the commissioner and the performance bond required of the contractor 
78.8 	by the commissioner shall be considered to be the contract and bond of the city for the 
78.9 	purposes of complying with the requirements of any applicable law or charter provision, 
78.10 	and the bond shall inure to the benefit of the city and operate for their protection to the 
78.11 	same extent as though they were parties thereto.

78.12 	Sec. 20. Minnesota Statutes 2006, section 365.37, is amended by adding a subdivision 
78.13 	to read:
78.14 		Subd. 2a.Best value alternative. As an alternative to the procurement method 
78.15 	described in subdivision 2, a contract for construction, building, alteration, improvement, 
78.16 	or repair work may be awarded to the vendor or contractor offering the best value under a 
78.17 	request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause 
78.18 	(2), and paragraph (c).

78.19 	Sec. 21. Minnesota Statutes 2006, section 374.13, is amended to read:
78.20 	374.13 TO ADVERTISE FOR BIDS.
78.21 		Subdivision 1.Bidding process. When the plans and specifications are completed 
78.22 	and approved by the city council and the county board, the commission shall, after notice 
78.23 	appropriate to inform possible bidders, obtain bids or proposals for all or any portion of 
78.24 	the work or materials, or both, to be done, performed, or furnished in the construction of 
78.25 	the building. All bids or proposals shall be sealed by the bidders or proposers and filed 
78.26 	with the commission at or before the time specified for the opening of bids or proposals. 
78.27 	At the time and place specified for the opening of bids or proposals, the commission shall 
78.28 	meet, open the bids or proposals, tabulate them, and award the contract or contracts to the 
78.29 	responsible bidder whose bid or proposal is the most favorable to the city or county, or 
78.30 	reject all bids and proposals. If all bids or proposals are rejected, the commission may, 
78.31 	after similar notice, obtain more bids or proposals or may modify or change the plans and 
78.32 	specifications and submit the modified plans and specifications to the city council and the 
78.33 	county board for approval. When the modified or changed plans and specifications are 
78.34 	satisfactory to both the city council and the county board, the plans and specifications 
79.1 	shall be returned to the commission and the commission shall proceed again, after similar 
79.2 	notice, to obtain bids or proposals. Any contract awarded by the commission shall be 
79.3 	subject to approval by the city council and the county board.
79.4 		Subd. 2.Best value alternative. As an alternative to the procurement method 
79.5 	described in subdivision 1, the commission may issue a request for proposals and award 
79.6 	the contract to the vendor or contractor offering the best value as described in section 
79.7 	16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

79.8 	Sec. 22. Minnesota Statutes 2006, section 375.21, is amended by adding a subdivision 
79.9 	to read:
79.10 		Subd. 1b.Best value alternative. As an alternative to the procurement method 
79.11 	described in subdivision 1, a county board may award a contract for construction, building, 
79.12 	alteration, improvement, or repair work to the vendor or contractor offering the best value 
79.13 	under a request for proposals as described in section 16C.28, subdivision 1, paragraph 
79.14 	(a), clause (2), and paragraph (c).

79.15 	Sec. 23. Minnesota Statutes 2006, section 383C.094, is amended by adding a 
79.16 	subdivision to read:
79.17 		Subd. 1a.Contracts in excess of $500; best value alternative. As an alternative to 
79.18 	the procurement method described in subdivision 1, the contract may be awarded to the 
79.19 	vendor or contractor offering the best value under a request for proposals as described in 
79.20 	section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

79.21 	Sec. 24. Minnesota Statutes 2006, section 412.311, is amended to read:
79.22 	412.311 CONTRACTS.
79.23 		Subdivision 1.Lowest responsible bidder. Except as provided in sections 471.87
79.24 	to 471.89, no member of a council shall be directly or indirectly interested in any contract 
79.25 	made by the council. Whenever the amount of a contract for the purchase of merchandise, 
79.26 	materials or equipment or for any kind of construction work undertaken by the city is 
79.27 	estimated to exceed the amount specified by section 471.345, subdivision 3, the contract 
79.28 	shall be let to the lowest responsible bidder, after notice has been published once in the 
79.29 	official newspaper at least ten days in advance of the last day for the submission of bids. If 
79.30 	the amount of the contract exceeds $1,000, it shall be entered into only after compliance 
79.31 	with section 471.345. 
79.32 		Subd. 2.Best value alternative. As an alternative to the procurement method 
79.33 	described in subdivision 1, a contract for construction, building, alteration, improvement, 
80.1 	or repair work may be awarded to the vendor or contractor offering the best value under a 
80.2 	request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause 
80.3 	(2), and paragraph (c).

80.4 	Sec. 25. Minnesota Statutes 2006, section 429.041, is amended by adding a subdivision 
80.5 	to read:
80.6 		Subd. 2a.Best value alternative. As an alternative to the procurement method 
80.7 	described in subdivision 2, the council may issue a request for proposals and award the 
80.8 	contract to the vendor or contractor offering the best value as described in section 16C.28, 
80.9 	subdivision 1, paragraph (a), clause (2), and paragraph (c).

80.10 	Sec. 26. Minnesota Statutes 2006, section 458D.21, is amended by adding a 
80.11 	subdivision to read:
80.12 		Subd. 2a.Contracts in excess of $5,000; best value alternative. As an alternative 
80.13 	to the procurement method described in subdivision 2, the board may issue a request for 
80.14 	proposals and award the contract to the vendor or contractor offering the best value as 
80.15 	described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

80.16 	Sec. 27. Minnesota Statutes 2006, section 469.015, is amended by adding a subdivision 
80.17 	to read:
80.18 		Subd. 1a.Best value alternative. As an alternative to the procurement method 
80.19 	described in subdivision 1, the authority may issue a request for proposals and award the 
80.20 	contract to the vendor or contractor offering the best value under a request for proposals as 
80.21 	described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

80.22 	Sec. 28. Minnesota Statutes 2006, section 469.068, subdivision 1, is amended to read:
80.23 		Subdivision 1.Contracts; bids; bonds. All construction work and every purchase 
80.24 	of equipment, supplies, or materials necessary in carrying out the purposes of sections 
80.25 	469.048 to 469.068, that involve the expenditure of $1,000 or more, shall be awarded by 
80.26 	contract as provided in this subdivision or in subdivision 1a. Before receiving bids under 
80.27 	sections 469.048 to 469.068, the authority shall publish, once a week for two consecutive 
80.28 	weeks in the official newspaper of the port's city, a notice that bids will be received for the 
80.29 	construction work, or purchase of equipment, supplies, or materials. The notice shall state 
80.30 	the nature of the work, and the terms and conditions upon which the contract is to be let 
80.31 	and name a time and place where the bids will be received, opened, and read publicly, 
80.32 	which time shall be not less than seven days after the date of the last publication. After 
81.1 	the bids have been received, opened, read publicly, and recorded, the commissioners 
81.2 	shall award the contract to the lowest responsible bidder, reserving the right to reject 
81.3 	any or all bids. The contract shall be executed in writing and the person to whom the 
81.4 	contract is awarded shall give sufficient bond to the board for its faithful performance. If 
81.5 	no satisfactory bid is received, the port authority may readvertise, or, by an affirmative 
81.6 	vote of two of its commissioners in the case of a three-member commission, or five of 
81.7 	its members in the case of a seven-member commission, may authorize the authority 
81.8 	to perform any part or parts of any construction work by day labor under conditions it 
81.9 	prescribes. The commissioners may establish reasonable qualifications to determine 
81.10 	the fitness and responsibility of bidders, and require bidders to meet the qualifications 
81.11 	before bids are accepted. If the commissioners by a two-thirds or five-sevenths vote 
81.12 	declare that an emergency exists requiring the immediate purchase of any equipment or 
81.13 	material or supplies at a cost in excess of $1,000, but not exceeding $5,000, in amount, 
81.14 	or making of emergency repairs, it shall not be necessary to advertise for bids, but the 
81.15 	material, equipment, or supplies may be purchased in the open market at the lowest price 
81.16 	obtainable, or the emergency repairs may be contracted for or performed without securing 
81.17 	formal competitive bids. An emergency, for purposes of this section, is unforeseen 
81.18 	circumstances or conditions which result in the jeopardizing of human life or property. 
81.19 	In all contracts involving the employment of labor, the commissioners shall stipulate 
81.20 	conditions they deem reasonable, as to the hours of labor and wages and may stipulate as 
81.21 	to the residence of employees to be employed by the contractors.
81.22 	Bonds shall be required from contractors for any works of construction as provided 
81.23 	in and subject to all the provisions of sections 574.26 to 574.31. 

81.24 	Sec. 29. Minnesota Statutes 2006, section 469.068, is amended by adding a subdivision 
81.25 	to read:
81.26 		Subd. 1a.Contracts; best value alternative. As an alternative to the procurement 
81.27 	method described in subdivision 1, a contract may be awarded to the vendor or contractor 
81.28 	offering the best value under a request for proposals as described in section 16C.28, 
81.29 	subdivision 1, paragraph (a), clause (2), and paragraph (c).

81.30 	Sec. 30. Minnesota Statutes 2006, section 469.101, is amended by adding a subdivision 
81.31 	to read:
81.32 		Subd. 5a.Construction contracts. For all contracts for construction, alteration, 
81.33 	repair, or maintenance work, the authority may award contracts to the vendor offering the 
81.34 	best value, and "best value" shall be defined and applied as set forth in sections 16C.02, 
82.1 	subdivision 4a, and 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c). 
82.2 	Alternatively, the authority may award all contracts for construction, alteration, repair, 
82.3 	or maintenance work to the lowest responsible bidder, reserving the right to reject any 
82.4 	or all bids.

82.5 	Sec. 31. Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision 
82.6 	to read:
82.7 		Subd. 3a.Contracts over $50,000; best value alternative. As an alternative to the 
82.8 	procurement method described in subdivision 3, municipalities may award a contract for 
82.9 	construction, alteration, repair, or maintenance work to the vendor or contractor offering 
82.10 	the best value under a request for proposals as described in section 16C.28, subdivision 1, 
82.11 	paragraph (a), clause (2), and paragraph (c).

82.12 	Sec. 32. Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision 
82.13 	to read:
82.14 		Subd. 4a.Contracts from $10,000 to $50,000; best value alternative. As an 
82.15 	alternative to the procurement method described in subdivision 4, municipalities may 
82.16 	award a contract for construction, alteration, repair, or maintenance work to the vendor or 
82.17 	contractor offering the best value under a request for proposals as described in section 
82.18 	16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

82.19 	Sec. 33. Minnesota Statutes 2006, section 471.345, subdivision 5, is amended to read:
82.20 		Subd. 5.Contracts less than $10,000. If the amount of the contract is estimated 
82.21 	to be $10,000 or less, the contract may be made either upon quotation or in the open 
82.22 	market, in the discretion of the governing body. If the contract is made upon quotation 
82.23 	it shall be based, so far as practicable, on at least two quotations which shall be kept on 
82.24 	file for a period of at least one year after their receipt. Alternatively, municipalities may 
82.25 	award a contract for construction, alteration, repair, or maintenance work to the vendor or 
82.26 	contractor offering the best value under a request for proposals as described in section 
82.27 	16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

82.28 	Sec. 34. Minnesota Statutes 2006, section 473.523, is amended by adding a subdivision 
82.29 	to read:
82.30 		Subd. 1a.Contracts over $50,000; best value alternative. As an alternative to 
82.31 	the procurement method described in subdivision 1, the council may issue a request for 
82.32 	proposals and award the contract to the vendor or contractor offering the best value 
83.1 	under a request for proposals as described in section 16C.28, subdivision 1, paragraph 
83.2 	(a), clause (2), and paragraph (c).

83.3 	Sec. 35. Minnesota Statutes 2006, section 473.756, subdivision 12, is amended to read:
83.4 		Subd. 12.Contracts. The authority may enter into a development agreement with 
83.5 	the team, the county, or any other entity relating to the construction, financing, and use of 
83.6 	the ballpark and related facilities and public infrastructure.  The authority may contract 
83.7 	for materials, supplies, and equipment in accordance with sections 471.345 and 473.754, 
83.8 	except that the authority, with the consent of the county, may employ or contract with 
83.9 	persons, firms, or corporations to perform one or more or all of the functions of architect, 
83.10 	engineer, or construction manager with respect to all or any part of the ballpark and 
83.11 	public infrastructure.  Alternatively, at the request of the team and with the consent of the 
83.12 	county, the authority shall authorize the team to provide for the design and construction 
83.13 	of the ballpark and related public infrastructure, subject to terms of Laws 2006, chapter 
83.14 	257.  The construction manager may enter into contracts with contractors for labor, 
83.15 	materials, supplies, and equipment for the construction of the ballpark and related public 
83.16 	infrastructure through the process of public bidding, except that the construction manager 
83.17 	may, with the consent of the authority or the team:
83.18 	(1) narrow the listing of eligible bidders to those which the construction manager 
83.19 	determines to possess sufficient expertise to perform the intended functions;
83.20 	(2) award contracts to the contractors that the construction manager determines 
83.21 	provide the best value under a request for proposals as described in section 16C.28, 
83.22 	subdivision 1, paragraph (a), clause (2), and paragraph (c), which are not required to be 
83.23 	the lowest responsible bidder; and
83.24 	(3) for work the construction manager determines to be critical to the completion 
83.25 	schedule, award contracts on the basis of competitive proposals or perform work with 
83.26 	its own forces without soliciting competitive bids if the construction manager provides 
83.27 	evidence of competitive pricing.
83.28 	The authority shall require that the construction manager certify, before the contract is 
83.29 	signed, a fixed and stipulated construction price and completion date to the authority 
83.30 	and post a performance bond in an amount at least equal to 100 percent of the certified 
83.31 	price, to cover any costs which may be incurred in excess of the certified price, including 
83.32 	but not limited to costs incurred by the authority or loss of revenues resulting from 
83.33 	incomplete construction on the completion date.  The authority may secure surety bonds 
83.34 	as provided in section 574.26, securing payment of just claims in connection with all 
83.35 	public work undertaken by it. Persons entitled to the protection of the bonds may enforce 
84.1 	them as provided in sections 574.28 to 574.32, and shall not be entitled to a lien on any 
84.2 	property of the authority under the provisions of sections 514.01 to 514.16. Contracts for 
84.3 	construction and operation of the ballpark must include programs, including Youthbuild, 
84.4 	to provide for participation by small local businesses and businesses owned by people of 
84.5 	color, and the inclusion of women and people of color in the workforces of contractors 
84.6 	and ballpark operators. The construction of the ballpark is a "project" as that term is 
84.7 	defined in section 177.42, subdivision 2, and is subject to the prevailing wage law under 
84.8 	sections 177.41 to 177.43.