1.1A bill for an act1.2relating to government operations; appropriating money for general legislative 1.3and administrative expenses of state government; regulating state and local 1.4government operations; directing the Legislative Coordinating Commission 1.5to assist in fostering an understanding of ethnic and cultural diversity and 1.6assist in issues related to preparedness for terrorism and disasters; creating 1.7the position of poet laureate; imposing a temporary technology surcharge; 1.8establishing provisions for grants management; requiring a state Web site with 1.9a searchable database on state contracts and grants; promoting use of persons 1.10with disabilities for document imaging services; modifying secretary of state 1.11provisions; creating a state employees electronic health records pilot project; 1.12creating a sustainable growth working group; abolishing the Department of 1.13Employee Relations and transferring duties; establishing a state budget trends 1.14study commission; requiring best value contracts and procurement for certain 1.15purposes; requiring reports; amending Minnesota Statutes 2006, sections 1.163.303, by adding subdivisions; 4.035, subdivision 3; 5.12, subdivision 1; 1.1715.06, subdivision 2; 15B.17, subdivision 1; 16A.102, subdivision 4; 16A.103, 1.18subdivision 1e; 16A.1286, subdivision 2; 16A.695, subdivisions 2, 3, by 1.19adding subdivisions; 16B.055, subdivision 1; 16B.24, subdivision 5; 16B.35, 1.20subdivision 1; 16C.02, subdivisions 4, 12, 14, by adding subdivisions; 16C.03, 1.21subdivisions 2, 3, 4, 8, 16, by adding subdivisions; 16C.05, subdivisions 1, 1.222; 16C.08, subdivisions 2, 4, by adding subdivisions; 16C.10, subdivision 1.237; 16C.16, subdivision 5; 16C.26; 16C.27, subdivision 1; 16C.28; 43A.08, 1.24subdivision 2a; 43A.346, subdivision 1; 103D.811, subdivision 3; 103E.505, 1.25subdivision 5; 116A.13, subdivision 5; 123B.52, subdivision 1, by adding a 1.26subdivision; 160.17, by adding a subdivision; 160.262, by adding a subdivision; 1.27161.1419, subdivision 8; 161.32, by adding a subdivision; 161.3412, subdivision 1.281; 161.38, subdivision 4; 270B.14, by adding a subdivision; 270C.03, subdivision 1.291; 302A.821, subdivision 4; 308A.995, subdivision 4; 308B.121, subdivision 1.304; 308B.215, subdivision 2; 317A.823, subdivision 1; 321.0206; 321.0210; 1.31323A.1003; 336.1-110; 336.9-516; 336.9-525; 358.41; 358.42; 358.50; 359.085, 1.32subdivisions 2, 3; 365.37, by adding a subdivision; 374.13; 375.21, by adding 1.33a subdivision; 383C.094, by adding a subdivision; 412.311; 429.041, by 1.34adding a subdivision; 458D.21, by adding a subdivision; 469.015, by adding 1.35a subdivision; 469.068, subdivision 1, by adding a subdivision; 469.101, by 1.36adding a subdivision; 471.345, subdivision 5, by adding subdivisions; 473.523, 1.37by adding a subdivision; 473.756, subdivision 12; 477A.014, subdivision 4; 1.38491A.02, subdivision 4; 507.24, subdivision 2; 517.08, subdivisions 1b, 1c; Laws 1.392005, chapter 156, article 2, section 45; Laws 2006, chapter 253, section 22, 2.1subdivision 1; Laws 2006, chapter 282, article 14, section 5; proposing coding 2.2for new law in Minnesota Statutes, chapters 4; 5; 11A; 13; 16B; 16C; 161; 270C; 2.3308B; 321; repealing Minnesota Statutes 2006, sections 16A.102, subdivisions 1, 2.42, 3; 16B.055, subdivisions 2, 3; 16C.055, subdivision 1; 16C.08, subdivision 2.54a; 69.051, subdivision 1c; 359.085, subdivision 8.2.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:2.7ARTICLE 12.8STATE GOVERNMENT APPROPRIATIONS

2.9Section 1. SUMMARY OF APPROPRIATIONS.

2.10    The amounts shown in this section summarize direct appropriations, by fund, made 2.11in this article.

2.1220082009Total2.13General$ 357,713,000$319,107,000$676,820,0002.14Health Care Access$1,871,000$1,912,000$3,783,0002.152.16State Government Special Revenue2,119,0002,124,0004,243,0002.17Environmental442,000448,000890,0002.18Remediation250,000250,000500,0002.19Special Revenue6,843,0003,839,00010,682,0002.202.21Highway User Tax Distribution2,139,0002,183,0004,322,0002.22Workers' Compensation7,640,0007,350,00014,990,0002.23Total$379,017,000$337,213,000$716,230,000

2.24Sec. 2. STATE GOVERNMENT APPROPRIATIONS.

2.25    The sums shown in the columns marked "appropriations" are appropriated to the 2.26agencies and for the purposes specified in this article. The appropriations are from the 2.27general fund, or another named fund, and are available for the fiscal years indicated 2.28for each purpose. The figures "2008" and "2009" used in this article mean that the 2.29appropriations listed under them are available for the fiscal year ending June 30, 2008, or 2.30June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 2.31year 2009. "The biennium" is fiscal years 2008 and 2009. 

2.32APPROPRIATIONS2.33Available for the Year2.34Ending June 302.3520082009

2.36Sec. 3. LEGISLATURE

2.37Subdivision 1.Total Appropriation$ 76,494,000$ 71,544,000

3.1Appropriations by Fund3.2200820093.3General76,316,00071,366,0003.4Health Care Access 178,000 178,000

3.5The amounts that may be spent for each 3.6purpose are specified in the following 3.7subdivisions.

3.8Subd. 2.Senate26,320,00023,677,000

3.9Subd. 3.House of Representatives33,168,00031,746,000

3.10During the biennium ending June 30, 2009, 3.11any revenues received by the house of 3.12representatives from sponsorship notices in 3.13broadcast or print media are appropriated to 3.14the house of representatives.

3.15Subd. 4.Legislative Coordinating Commission 16,988,000 16,121,000

3.16Appropriations by Fund3.17General16,810,00015,943,0003.18Health Care Access  178,000 178,000

3.19(a) $5,624,000 the first year and $5,469,000 3.20the second year are for the Office of the 3.21Revisor of Statutes.3.22(b) $1,257,000 the first year and $1,254,000 3.23the second year are for the Legislative 3.24Reference Library.3.25(c) $5,719,000 the first year and $5,720,000 3.26the second year are for the Office of the 3.27Legislative Auditor.3.28(d) $750,000 the first year is to the 3.29Legislative Coordinating Commission 3.30for a facilitated planning process relating 3.31to the Capitol building and the Capitol 3.32campus. The process must be conducted 3.33in cooperation with the Capitol Area 3.34Architectural and Planning Board and the 4.1commissioner of administration, and must 4.2include consideration of issues relating to 4.3renovation and possible expansion of the 4.4Capitol building, phasing strategies relating 4.5to renovation of the Capitol, and related 4.6campus planning issues. The process must 4.7include consideration of as many options as 4.8feasible relating to renovation of the Capitol 4.9and related campus buildings. The process 4.10must be completed by September 30, 2007.4.11(e) All legislative offices should, whenever 4.12possible, implement information technology 4.13systems that are compatible and work 4.14seamlessly across the legislature. Wherever 4.15possible, single systems should be 4.16implemented to avoid unnecessary 4.17duplication and inefficiency. The directors 4.18of information technology for the senate, 4.19house of representatives, and the Legislative 4.20Coordinating Commission must submit 4.21a written report describing their efforts 4.22to collaborate on implementing shared 4.23information technology systems. The report 4.24must be submitted to the chairs of the house 4.25of representatives and senate committees 4.26with jurisdiction over rules and to the 4.27Legislative Coordinating Commission on 4.28January 15, 2008, and January 15, 2009.

4.294.30Sec. 4. GOVERNOR AND LIEUTENANT GOVERNOR$3,679,000$3,777,000

4.31(a) This appropriation is to fund the Office of 4.32the Governor and Lieutenant Governor.4.33$19,000 the first year and $19,000 the 4.34second year are for necessary expenses in 4.35the normal performance of the governor's 5.1and lieutenant governor's duties for which no 5.2other reimbursement is provided.5.3(b) By September 1 of each year, the 5.4commissioner of finance shall report to 5.5the chairs of the senate Governmental 5.6Operations Budget Division and the house 5.7State Government Finance Division any 5.8personnel costs incurred by the Office of 5.9the Governor and Lieutenant Governor that 5.10were supported by appropriations to other 5.11agencies during the previous fiscal year. 5.12The Office of the Governor shall inform the 5.13chairs of the divisions before initiating any 5.14interagency agreements.

5.15Sec. 5. STATE AUDITOR$9,234,000$9,220,000

5.16Sec. 6. ATTORNEY GENERAL$26,182,000$27,113,000

5.17Appropriations by Fund5.18200820095.19General24,068,00024,994,0005.205.21State Government Special Revenue1,719,0001,724,0005.22Environmental145,000145,0005.23Remediation250,000250,000

5.24Sec. 7. SECRETARY OF STATE$ 9,029,000$6,517,000

5.25Appropriations by Fund5.26200820095.27General 6,185,0006,517,0005.28Special Revenue2,844,000

5.29(a) $310,000 of this appropriation must be 5.30transferred to the Help America Vote Act 5.31account and is designated as a portion of the 5.32match required by section 253(b)(5) of the 5.33Help America Vote Act.6.1(b) $2,844,000 the first year is appropriated 6.2from the Help America Vote Act account for 6.3the purposes and uses authorized by federal 6.4law. This appropriation is available until 6.5June 30, 2009.6.6(c) Notwithstanding Laws 2005, chapter 6.7162, section 34, subdivision 7, any balance 6.8remaining in the Help America Vote Act 6.9account after previous appropriations and the 6.10appropriations in this section is appropriated 6.11to the secretary of state for the purposes of 6.12the account. This appropriation is available 6.13until June 30, 2011.

6.146.15Sec. 8. CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD$714,000$735,000

6.16Sec. 9. INVESTMENT BOARD$151,000$151,000

6.176.18Sec. 10. OFFICE OF ENTERPRISE TECHNOLOGY$10,943,000$7,739,000

6.19(a) $2,000,000 the first year is for the first 6.20phase of an electronic licensing system. 6.21This is a onetime appropriation. This 6.22appropriation carries forward to the second 6.23year.6.24(b) $3,910,000 the first year and $3,910,000 6.25the second year are for information 6.26technology security. The base appropriation 6.27is $2,682,000 in fiscal year 2010 and 6.28$2,682,000 in fiscal year 2011.6.29(c) $1,000,000 the first year is for select small 6.30agency technology infrastructure projects.6.31(d) $68,000 the first year is for an electronic 6.32documents study and report.7.1(e) $200,000 the first year is for grants to be 7.2distributed to the counties participating in 7.3the development of the integrated financial 7.4system for enhancements to the system. 7.5Enhancements include:7.6(1) systems to improve the tracking and 7.7reporting of state and federal grants;7.8(2) electronic payments to vendors;7.9(3) electronic posting of state payments to 7.10the financial system;7.11(4) automating revenue collection and 7.12posting through check conversion, automatic 7.13clearing house transactions, or credit card 7.14processing;7.15(5) improvements to county budgetary 7.16systems;7.17(6) storage or linkage of electronic 7.18documents;7.19(7) improved executive level reporting and 7.20extraction of data; and7.21(8) improved information and reporting for 7.22audits.7.23The grant funds shall be distributed on a pro 7.24rata basis to each of the counties participating 7.25in the development of the integrated financial 7.26system. The Minnesota Counties Computer 7.27Cooperative, acting as a fiscal agent for 7.28the participating counties, shall receive the 7.29grant money for the counties. The grants 7.30will only be distributed after $600,000 is 7.31expended or provided from other sources. 7.32The chief information officer may require 7.33a report or such other information as the 7.34chief information officer deems appropriate 8.1to verify that the requirements of this 8.2section have been met. This appropriation 8.3is available until June 30, 2011, and cancels 8.4on that date.8.5The chief information officer shall report to 8.6the legislative committees and divisions with 8.7jurisdiction over state government policy 8.8and finance and economic development 8.9programs.

8.10Sec. 11. ADMINISTRATIVE HEARINGS$7,823,000$7,540,000

8.11Appropriations by Fund8.12200820098.13General283,000290,0008.148.15Workers' Compensation7,540,0007,250,000

8.16Sec. 12. ADMINISTRATION

8.17Subdivision 1.Total Appropriation$ 42,220,000$22,128,000

8.18The amounts that may be spent for each 8.19purpose are specified in the following 8.20subdivisions.

8.21Subd. 2.State Facilities Services14,496,00011,208,000

8.22(a) $7,888,000 the first year and $7,888,000 8.23the second year are for office space costs of 8.24the legislature and veterans organizations, 8.25for ceremonial space, and for statutorily free 8.26space.8.27(b) $2,500,000 the first year is to purchase 8.28and implement a Web-enabled, shared 8.29computer system to facilitate the state's real 8.30property portfolio management. 8.31(c) $885,000 the first year is for onetime 8.32funding of agency relocation expenses for 8.33the Department of Public Safety.

9.1Subd. 3.State and Community Services3,456,0003,547,000

9.2(a) $60,000 the first year and $240,000 the 9.3second year are to fund activities to prepare 9.4for and promote the 2010 census. Base 9.5funding for this activity is $260,000 in fiscal 9.6year 2010 and $180,000 in fiscal year 2011.9.7(b) $1,100,000 the first year and $1,100,000 9.8the second year are for the Land Management 9.9Information Center.9.10(c) $196,000 the first year and $196,000 the 9.11second year are for the Office of the State 9.12Archaeologist.9.13(d) $89,000 the first year is for the genetic 9.14information work group and report. This 9.15appropriation is available until June 30, 2009.

9.16Subd. 4.Administrative Management Services6,197,0005,418,000

9.17(a) $125,000 the first year is to create an 9.18Office of Grants Management to standardize 9.19state grants management policies and 9.20procedures. For the fiscal year beginning 9.21July 1, 2008, the commissioner must 9.22deduct up to $125,000 from state grants 9.23to nongovernmental entities, as necessary 9.24to fund the commissioner's duties under 9.25new Minnesota Statutes, sections 16B.97 9.26and 16B.98. The amount deducted from 9.27appropriations for these grants is transferred 9.28to the commissioner for purposes of 9.29administering these sections.9.30(b) $250,000 the first year and $250,000 9.31the second year are to establish a small 9.32agency resource team to consolidate and 9.33streamline the human resources and financial 10.1management activities for small state 10.2agencies, boards, and councils.10.3(c) $700,000 the first year is a onetime 10.4appropriation for a targeted group business 10.5disparity study. The commissioner 10.6must cooperate with units of local 10.7government conducting similar studies. The 10.8commissioner shall ensure that the results of 10.9the study are kept current and that any new or 10.10upgraded accounting or procurement systems 10.11properly record purchases from minority and 10.12female-owned businesses through the use of 10.13state contracts, and the availability of bids 10.14from those businesses.10.15(d) $74,000 the first year and $74,000 10.16the second year are for the Council on 10.17Developmental Disabilities.10.18(e) $250,000 in fiscal year 2008 and $250,000 10.19in fiscal year 2009 are for a grant to the 10.20Council on Developmental Disabilities 10.21for the purpose of establishing a statewide 10.22self-advocacy network for persons with 10.23intellectual and developmental disabilities 10.24(ID/DD). The self-advocacy network shall:10.25(1) ensure that persons with ID/DD are 10.26informed of their rights in employment, 10.27housing, transportation, voting, government 10.28policy, and other issues pertinent to the 10.29ID/DD community;10.30(2) provide public education and awareness 10.31of the civil and human rights issues persons 10.32with ID/DD face;10.33(3) provide funds, technical assistance, and 10.34other resources for self-advocacy groups 10.35across the state; and11.1(4) organize systems of communications 11.2to facilitate an exchange of information 11.3between self-advocacy groups.11.4This appropriation is in addition to any other 11.5appropriations and must be added to the base 11.6appropriation beginning in fiscal year 2010.11.7(f) $75,000 is for purposes of promotion 11.8of document imaging work in government 11.9agencies to be done by persons with 11.10developmental disabilities.

11.11Subd. 5.Fiscal Agent1,000,000

11.12$1,000,000 is for a grant to Washington 11.13County for capital improvements detailed 11.14in the approved planned unit development 11.15for the Disabled Veteran's Rest Camp to 11.16provide increased capacity, amenities, access, 11.17and safety for Minnesota veterans. This 11.18appropriation is available until spent.

11.19Subd. 6.Public Broadcasting17,071,0001,955,000

11.20(a) $9,750,000 is for grants to noncommercial 11.21television stations to assist with the continued 11.22conversion to a digital broadcast signal as 11.23mandated by the federal government. This 11.24appropriation must be used to assist each 11.25station to complete its digital production 11.26facilities and interconnect with other 11.27Minnesota public television stations. In 11.28order to qualify for these grants, a station 11.29must meet the criteria established for grants 11.30in Minnesota Statutes, section 129D.12, 11.31subdivision 2.11.32(b) $3,000,000 is for grants to Minnesota 11.33Public Radio to assist with conversion to a 11.34digital broadcast signal.12.1(c) $2,263,000 the first year and $963,000 12.2the second year are for matching grants for 12.3public television.12.4(d) $398,000 the first year and $398,000 12.5the second year are for public television 12.6equipment grants. Equipment or matching 12.7grant allocations shall be made after 12.8considering the recommendations of the 12.9Minnesota Public Television Association.12.10(e) $17,000 the first year and $17,000 the 12.11second year are for grants to the Twin Cities 12.12regional cable channel.12.13(f) $413,000 in fiscal year 2008 and $287,000 12.14in fiscal year 2009 are for community service 12.15grants to public educational radio stations.12.16(g) $400,000 in fiscal year 2008 and $100,000 12.17in fiscal year 2009 are for equipment grants 12.18to public educational radio stations.12.19(h) The grants in paragraphs (f) and (g) 12.20must be allocated after considering the 12.21recommendations of the Association of 12.22Minnesota Public Educational Radio Stations 12.23under Minnesota Statutes, section 129D.14.12.24(i) $830,000 the first year and $190,000 12.25the second year are for equipment grants to 12.26Minnesota Public Radio, Inc.12.27(j) Any unencumbered balance remaining the 12.28first year for grants to public television or 12.29radio stations does not cancel and is available 12.30for the second year.

12.3112.3212.33Sec. 13. CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD$427,000$373,000

13.1$65,000 in fiscal year 2008 is for the 13.2decennial expenses related to the board's 13.3duties under Minnesota Statutes, section 13.4473.864, subdivisions 1 and 2. Money 13.5appropriated in fiscal year 2008 is available 13.6until June 30, 2009. This is a onetime 13.7appropriation.

13.8Sec. 14. FINANCE

13.9Subdivision 1.Total Appropriation$21,765,000$15,596,000

13.10The amounts that may be spent for each 13.11purpose are specified in the following 13.12subdivisions.

13.13Subd. 2.State Financial Management8,923,0008,905,000

13.14$250,000 the first year is for the state's 13.15share of the cost of bankruptcy counsel 13.16representing joint interests of the state and 13.17the city of Duluth in the Northwest Airlines 13.18bankruptcy. This is a onetime appropriation.

13.1913.20Subd. 3.Information and Management Services12,842,0006,691,000

13.21$6,319,000 the first year is for costs related to 13.22the Minnesota Accounting and Procurement 13.23System (MAPS).

13.24Sec. 15. EMPLOYEE RELATIONS$ 5,895,000$5,839,000

13.25 $250,000 each year is for the Center for 13.26Health Care Purchasing Improvement. This 13.27is a onetime appropriation.

13.28Sec. 16. REVENUE

13.29Subdivision 1.Total Appropriation$ 127,970,000$123,224,000

13.30Appropriations by Fund13.312008200913.32General 123,841,000119,004,00013.33Health Care Access1,693,0001,734,00014.114.2Highway User Tax Distribution2,139,0002,183,00014.3Environmental297,000303,000

14.4The amounts that may be spent for each 14.5purpose are specified in subdivisions 2 and 3.

14.6Subd. 2.Tax System Management 107,648,000101,045,000

14.7Appropriations by Fund14.8General 103,519,00096,825,00014.9Health Care Access1,693,0001,734,00014.1014.11Highway User Tax Distribution2,139,0002,183,00014.12Environmental297,000303,000

14.13(a) $6,910,000 the first year and $8,704,000 14.14the second year are for additional activities 14.15to identify and collect tax liabilities from 14.16individuals and businesses that currently 14.17do not pay all taxes owed. This initiative 14.18is expected to result in new general fund 14.19revenues of $42,400,000 for the biennium 14.20ending June 30, 2009.14.21(b) The department must report to the chairs 14.22of the house of representatives Ways and 14.23Means and senate Finance Committees by 14.24March 1, 2008, and January 15, 2009, on the 14.25following performance indicators:14.26(1) the number of corporations noncompliant 14.27with the corporate tax system each year and 14.28the percentage and dollar amounts of valid 14.29tax liabilities collected;14.30(2) the number of businesses noncompliant 14.31with the sales and use tax system and the 14.32percentage and dollar amount of the valid tax 14.33liabilities collected; and15.1(3) the number of individual noncompliant 15.2cases resolved and the percentage and dollar 15.3amounts of valid tax liabilities collected.15.4(c) The reports must also identify base-level 15.5expenditures and staff positions related to 15.6compliance and audit activities, including 15.7baseline information as of January 1, 2006. 15.8The information must be provided at the 15.9budget activity level.15.10(d) $10,550,000 the first year is for the 15.11purchase and development of an integrated 15.12tax software package.15.13(e) $75,000 the first year and $75,000 the 15.14second year are for grants to one or more 15.15nonprofit organizations, qualifying under 15.16section 501(c)(3) of the Internal Revenue 15.17Code of 1986, to coordinate, facilitate, 15.18encourage, and aid in the provision of 15.19taxpayer assistance services. For purposes 15.20of this paragraph, "taxpayer assistance 15.21services" means accounting and tax 15.22preparation services provided by volunteers 15.23to low-income and disadvantaged Minnesota 15.24residents to help them file federal and 15.25state income tax returns and Minnesota 15.26property tax refund claims and may include 15.27providing personal representation before 15.28the Department of Revenue and Internal 15.29Revenue Service.

15.30Subd. 3.Accounts Receivable Management20,322,00022,179,000

15.31$1,750,000 the first year and $3,110,000 15.32the second year are for additional activities 15.33to identify and collect tax liabilities from 15.34individuals and businesses that currently 15.35do not pay all taxes owed. This initiative 16.1is expected to result in new general fund 16.2revenues of $60,000,000 for the biennium 16.3ending June 30, 2009.

16.4Sec. 17. GAMBLING CONTROL$2,869,000$2,940,000

16.5These appropriations are from the lawful 16.6gambling regulation account in the special 16.7revenue fund.

16.8Sec. 18. RACING COMMISSION$1,130,000$899,000

16.9(a) These appropriations are from racing 16.10and card playing regulation accounts in the 16.11special revenue fund.16.12(b) $295,000 the first year and $64,000 the 16.13second year and thereafter are for information 16.14technology improvements implemented in 16.15consultation with the Office of Enterprise 16.16Technology as part of the small agency 16.17technology initiative.

16.18Sec. 19. STATE LOTTERY

16.19Notwithstanding Minnesota Statutes, section 16.20349A.10, subdivision 3, the operating budget 16.21must not exceed $27,378,000 in fiscal year 16.222008 and $28,141,000 in fiscal year 2009.

16.23Sec. 20. TORT CLAIMS$161,000$161,000

16.24To be spent by the commissioner of finance. 16.25If the appropriation for either year is 16.26insufficient, the appropriation for the other 16.27year is available for it.

16.2816.29Sec. 21. MINNESOTA STATE RETIREMENT SYSTEM

16.30Subdivision 1.Total Appropriation$1,608,000$1,649,000

17.1The amounts that may be spent for each 17.2purpose are specified in the following 17.3subdivisions.

17.4Subd. 2.Legislators1,170,0001,200,000

17.5Under Minnesota Statutes, sections 3A.03, 17.6subdivision 2; 3A.04, subdivisions 3 and 4; 17.7and 3A.115.

17.8Subd. 3. Constitutional Officers438,000 449,000

17.9Under Minnesota Statutes, section 352C.001.17.10If an appropriation in this section for either 17.11year is insufficient, the appropriation for the 17.12other year is available for it.

17.1317.14Sec. 22. MINNEAPOLIS EMPLOYEES RETIREMENT FUND$ 9,000,000$ 9,000,000

17.15These amounts are estimated to be needed 17.16under Minnesota Statutes, section 422A.101, 17.17subdivision 3.

17.1817.19Sec. 23. TEACHERS RETIREMENT ASSOCIATION$15,800,000$15,800,000

17.20The amounts estimated to be needed are as 17.21follows:

17.2217.2317.24(a) Special direct state aid authorized under Minnesota Statutes, section 354A.12, subdivisions 3a and 3c.13,300,00013,300,000

17.2517.2617.27(b) Special direct state matching aid authorized under Minnesota Statutes, section 354A.12, subdivision 3b.2,500,0002,500,000

17.2817.29Sec. 24. ST. PAUL TEACHERS RETIREMENT FUND$2,967,000$2,967,000

17.30The amounts estimated to be needed for 17.31special direct state aid to first class city 17.32teachers retirement funds authorized under 17.33Minnesota Statutes, section 354A.12, 17.34subdivisions 3a and 3c.

18.1Sec. 25. AMATEUR SPORTS COMMISSION$370,000$372,000

18.2(a) Of this amount, $67,000 each year is to 18.3be used for an additional event development 18.4position. This is a onetime appropriation. 18.5The base budget for the Amateur Sports 18.6Commission shall be $220,000 in fiscal year 18.72010 and $220,000 in fiscal year 2011.18.8(b) The amount available for appropriation 18.9to the commission under Laws 2005, chapter 18.10156, article 2, section 43, is reduced in the 18.11first year and the second year by the amounts 18.12appropriated in this section.

18.1318.14Sec. 26. COUNCIL ON BLACK MINNESOTANS$325,000$333,000

18.1518.16Sec. 27. COUNCIL ON CHICANO/LATINO AFFAIRS$308,000$314,000

18.1718.18Sec. 28. COUNCIL ON ASIAN-PACIFIC MINNESOTANS$289,000$289,000

18.19Sec. 29. INDIAN AFFAIRS COUNCIL$664,000$493,000

18.20(a) $80,000 in the first year is for the 18.21acquisition of an Indian burial site in 18.22Becker County. The Indian Affairs Council 18.23shall solicit donations from federal, state, 18.24nonprofit, private, and tribal sources for this 18.25purpose. This is a onetime appropriation and 18.26is available for expenditure until June 30, 18.272009.18.28(b) $100,000 in the first year is for transfer to 18.29the director of the Minnesota Office of Higher 18.30Education for a grant for the Dakota/Ojibwe 18.31Language Revitalization Project to expand 18.32an existing pilot project to promote activities 18.33and programs that are specific to promoting 19.1revitalization of indigenous language for 19.2American Indian children who do not live 19.3on an Indian reservation. The pilot project 19.4shall focus on developing programs that 19.5meet the language needs of children in 19.6prekindergarten through grade 12. This is a 19.7onetime appropriation.

19.819.9Sec. 30. GENERAL CONTINGENT ACCOUNTS$1,000,000$500,000

19.10Appropriations by Fund19.112008200919.12General500,000-0-19.1319.14State Government Special Revenue400,000400,00019.1519.16Workers' Compensation100,000100,000

19.17(a) The appropriations in this section 19.18may only be spent with the approval of 19.19the governor after consultation with the 19.20Legislative Advisory Commission pursuant 19.21to Minnesota Statutes, section 3.30.19.22(b) If an appropriation in this section for 19.23either year is insufficient, the appropriation 19.24for the other year is available for it.19.25(c) If a contingent account appropriation 19.26is made in one fiscal year, it should be 19.27considered a biennial appropriation.19.28    Sec. 31. MANAGERIAL POSITION REDUCTIONS.19.29    The governor must reduce the number of deputy commissioners, assistant 19.30commissioners, and positions designated as unclassified under authority of Minnesota 19.31Statutes, section 43A.08, subdivision 1a, by an amount that will generate savings to the 19.32general fund of $7,292,000 in the biennium ending June 30, 2009, and $7,292,000 in the 19.33biennium ending June 30, 2011.19.34    Sec. 32. BALANCE CARRIED FORWARD.20.1    Notwithstanding Minnesota Statutes, section 16A.1522, subdivision 4, any positive 20.2unrestricted general fund budgetary balance as of June 30, 2007, is carried forward to the 20.3fiscal year ending June 30, 2008.20.4ARTICLE 220.5STATE GOVERNMENT OPERATIONS20.6    Section 1. Minnesota Statutes 2006, section 3.303, is amended by adding a subdivision 20.7to read:20.8    Subd. 8.Ethnic heritage and new Americans.The commission shall undertake 20.9activities it determines are necessary to assist state government to foster an understanding 20.10and appreciation of ethnic and cultural diversity in Minnesota, to identify underutilized 20.11resources within the immigrant community, and to facilitate the full participation of 20.12immigrants in social, cultural, and political life in this state. The commission may 20.13appoint a working group under section 3.305, subdivision 6, to assist the commission in 20.14these duties. A working group under this subdivision may include legislators and public 20.15members. The commission may provide compensation for public members as provided 20.16in section 15.0575. In performing duties under this subdivision, the commission shall 20.17collaborate with the councils established in sections 3.9223, 3.9225, and 3.9226. This 20.18subdivision expires June 30, 2009.20.19    Sec. 2. Minnesota Statutes 2006, section 3.303, is amended by adding a subdivision to 20.20read:20.21    Subd. 9.Preparedness for terrorism and disasters.The commission shall 20.22undertake activities it determines are necessary to advise the legislature and oversee 20.23executive activities on issues related to homeland security, emergency management, 20.24man-made and natural disasters, terrorism, bioterrorism, public health emergencies, and 20.25vulnerabilities in public and private infrastructures. The commission may appoint a 20.26working group under section 3.305, subdivision 6, to assist the commission in these duties. 20.27A working group under this subdivision may include legislators and public members. 20.28The commission may provide compensation for public members as provided in section 20.2915.0575. This subdivision expires June 30, 2011.20.30    Sec. 3. Minnesota Statutes 2006, section 4.035, subdivision 3, is amended to read:20.31    Subd. 3. Expiration date. Unless an earlier date is specified by statute or by 20.32executive order, an executive order shall expire 90 days after the date that the governor 20.33who issued the order vacates leaves office.21.1EFFECTIVE DATE.This section is effective the day following final enactment.21.2    Sec. 4. [4.60] POET LAUREATE.21.3    (a) The position of poet laureate of the state of Minnesota is established. The 21.4Minnesota Humanities Commission must solicit nominations for the poet laureate 21.5appointment and must make recommendations to the governor. After receiving 21.6recommendations from the Minnesota Humanities Commission, the governor shall 21.7appoint a state poet laureate and conduct appropriate ceremonies to honor the person 21.8appointed. The person appointed as poet laureate continues to serve in this position until 21.9the governor appoints another person.21.10    (b) State agencies and officers are encouraged to use the services of the poet laureate 21.11for appropriate ceremonies and celebrations.21.12    Sec. 5. Minnesota Statutes 2006, section 5.12, subdivision 1, is amended to read:21.13    Subdivision 1. Fees. The secretary of state shall charge a fee of $5 for each 21.14certificate or certification of a copy of any document filed in the Office of the Secretary 21.15of State. The secretary of state shall charge a fee of $3 for a copy of an original filing of 21.16a corporation, limited partnership, assumed name, or trade or service mark, or for the 21.17complete record of a certificate of assumed name. The secretary of state shall charge a 21.18fee of $3 for a copy of any or all subsequent filings of a corporation, limited partnership, 21.19assumed name, or trade or service mark. The secretary of state shall charge a fee of $1 per 21.20page for copies of other nonuniform commercial code documents filed with the secretary of 21.21state. At the time of filing, the secretary of state may provide at the public counter, without 21.22charge, a copy of a filing, ten or fewer pages in length, to the person making the filing.21.23    Sec. 6. [5.32] TEMPORARY TECHNOLOGY SURCHARGE.21.24    Subdivision 1.Surcharge.For fiscal years 2008 and 2009, the following technology 21.25surcharges are imposed on the filing fees required under the following statutes:21.26    (1) $25 for articles of incorporation filed under section 302A.151;21.27    (2) $25 for articles of organization filed under section 322B.17;21.28    (3) $25 for applications for certificates of authority to transact business in Minnesota 21.29filed under section 303.06;21.30    (4) $20 for annual reports filed by non-Minnesota corporations under section 21.31303.14; and 21.32    (5) $50 for reinstatements to authority to transact business in Minnesota filed under 21.33section 303.19.22.1    Subd. 2.Deposit.The surcharges listed in subdivision 1 shall be deposited into the 22.2uniform commercial code account.22.3    Subd. 3.Expiration.This section expires June 30, 2009.22.4    Sec. 7. [11A.27] REPORT ON INVESTMENT CONSULTANT ACTIVITIES 22.5AND DELIVERABLES.22.6    (a) Annually, on or before November 1, the State Board of Investment shall file a 22.7report with the Legislative Reference Library on the activities and work product during 22.8that year of any investment consultants retained by the board.22.9    (b) The report must include the following items:22.10    (1) the total contract fee paid to each investment consultant;22.11    (2) a listing of the projects in which the investment consultant was involved; and22.12    (3) examples of the written work product provided by the investment consultant on 22.13those projects during the report coverage period.22.14EFFECTIVE DATE.This section is effective June 30, 2007.22.15    Sec. 8. [13.595] GRANTS.22.16    Subdivision 1.Definitions.For purposes of this section, the following terms have 22.17the meanings given them.22.18    (a) "Completion of the evaluation process" means that the granting agency has 22.19completed negotiating the grant agreement with the selected grantee.22.20    (b) "Grant agreement"  has the meaning given in section 16B.97, subdivision 1.22.21    (c) "Grantee" means a person that applies for or receives a grant.22.22    (d) "Granting agency" means the state agency that provides the grant.22.23    (e) "Opened" means the act that occurs once the deadline for submitting a response 22.24to a proposal to the granting agency has been reached.22.25    (f) "Request for proposal" means the data outlining the responsibilities the granting 22.26agency wants the grantee to assume.22.27    (g) "Response" means the data submitted by a grantee as required by a request for 22.28proposal.22.29    Subd. 2.Request for applications.Data created by a granting agency to create a 22.30request for proposal is classified as nonpublic until the request for proposal is published. 22.31To the extent that a granting agency involves persons outside the granting agency to create 22.32the request for proposal, the data remain nonpublic in the hands of all persons who may 22.33not further disseminate any data that are created or reviewed as part of the request for 22.34proposal development. At publication, the data in the request for proposal is public.23.1    Subd. 3.Responses to request for proposals.(a) Responses submitted by a grantee 23.2are private or nonpublic until the responses are opened. Once the responses are opened, 23.3the name and address of the grantee and the amount requested is public. All other data in a 23.4response is private or nonpublic data until completion of the evaluation process. After a 23.5granting agency has completed the evaluation process, all remaining data in the responses 23.6is public with the exception of trade secret data as defined and classified in section 13.37. 23.7A statement by a grantee that the response is copyrighted or otherwise protected does 23.8not prevent public access to the response.23.9    (b) If all responses are rejected prior to completion of the evaluation process, 23.10all data, other than that made public at the opening, remain private or nonpublic 23.11until a resolicitation of proposals results in completion of the evaluation process or a 23.12determination is made to abandon the grant. If the rejection occurs after the completion of 23.13the evaluation process, the data remain public. If a resolicitation of proposals does not 23.14occur within one year of the grant opening date, the remaining data become public.23.15    Subd. 4.Evaluation data.(a) Data created or maintained by a granting agency as 23.16part of the evaluation process referred to in this section are protected nonpublic data until 23.17completion of the evaluation process at which time the data are public with the exception 23.18of trade secret data as defined and classified in section 13.37.23.19    (b) If a granting agency asks individuals outside the granting agency to assist with 23.20the evaluation of the responses, the granting agency may share not public data in the 23.21responses with those individuals. The individuals participating in the evaluation may not 23.22further disseminate the not public data they review.23.23    Sec. 9. Minnesota Statutes 2006, section 15.06, subdivision 2, is amended to read:23.24    Subd. 2. Term of office; successor. The term of a commissioner shall end with the 23.25term of the office of governor. If the appointing authority is the governor In addition, the 23.26term shall end on the date the governor who appointed the commissioner if the governor23.27vacates office. The appointing authority shall submit to the president of the senate 23.28the name of an appointee as permanent commissioner as provided by section 
         15.066, 23.29subdivision 2
         , within 45 legislative days after the end of the term of a commissioner 23.30and within 45 legislative days after the occurrence of a vacancy. The appointee shall 23.31take office as permanent commissioner when the senate notifies the appointing authority 23.32that it has consented to the appointment. A commissioner shall serve at the pleasure of 23.33the appointing authority. 23.34EFFECTIVE DATE.This section is effective the day following final enactment.24.1    Sec. 10. Minnesota Statutes 2006, section 15B.17, subdivision 1, is amended to read:24.2    Subdivision 1. Proposals. (a) Before a state agency or other public body develops, 24.3to submit to the legislature and the governor, a budget proposal or plans for capital 24.4improvements within the Capitol Area to submit to the legislature and the governor, 24.5it must consult with the board.24.6    (b) The public body must provide enough money for the board's review and planning 24.7if the board decides its review and planning services are necessary. Money received by the 24.8board under this subdivision is deposited in the special revenue fund and appropriated to 24.9the board.24.10    Sec. 11. Minnesota Statutes 2006, section 16A.102, subdivision 4, is amended to read:24.11    Subd. 4. Reporting information.When updated information is available At 24.12the time of a state revenue and expenditure forecast as specified in section 
         16A.103, 24.13subdivision 1
         , and after the completion of a legislative session, the Department of Finance 24.14must report on revenue relative to personal income as specified in subdivision 1. The 24.15information must specify (1) the share of personal income to be collected in taxes and 24.16other revenues to pay for state and local government services and (2) the division of that 24.17revenue between state and local government revenues.24.18    Sec. 12. Minnesota Statutes 2006, section 16A.103, subdivision 1e, is amended to read:24.19    Subd. 1e. Economic information. The commissioner must review economic 24.20information including economic forecasts with legislative fiscal staff no later than two 24.21weeks before the forecast is released. The commissioner must invite the chairs and lead 24.22minority members of the senate State Government Finance Committee and the house 24.23Ways and Means Committee, and legislative fiscal staff to attend any meetings held with 24.24outside economic advisors. The commissioner must provide legislative fiscal staff with 24.25monthly economic forecast information received from outside sources.24.26    Sec. 13. Minnesota Statutes 2006, section 16A.1286, subdivision 2, is amended to read:24.27    Subd. 2. Billing procedures. The commissioner may bill up to $7,520,000 in 24.28each fiscal year for statewide systems services provided to state agencies, judicial branch 24.29agencies, the University of Minnesota, the Minnesota State Colleges and Universities, 24.30and other entities. Billing must be based only on usage of services relating to statewide 24.31systems provided by the Intertechnologies Division. Each agency shall transfer from 24.32agency operating appropriations to the statewide systems account the amount billed by 24.33the commissioner. Billing policies and procedures related to statewide systems services 25.1must be developed by the commissioner in consultation with the commissioners of 25.2employee relations and administration, the University of Minnesota, and the Minnesota 25.3State Colleges and Universities.25.4    Sec. 14. Minnesota Statutes 2006, section 16A.695, subdivision 2, is amended to read:25.5    Subd. 2. Leases and management contracts. (a) A public officer or agency that 25.6is authorized by law to lease or enter into a management contract with respect to state 25.7bond financed property shall comply with this subdivision. A reference to a lease or 25.8management contract in this subdivision includes any amendments, modifications, or 25.9alterations to the referenced lease or management contract and refers to the lease wherein 25.10the public officer or agency is the lessor of the state bond financed property and the other 25.11contracting party is the lessee.25.12    (b) The lease or management contract may be entered into for the express purpose of 25.13carrying out a governmental program established or authorized by law and established by 25.14official action of the contracting public officer or agency, in accordance with orders of the 25.15commissioner intended to ensure the legality and tax-exempt status of bonds issued to 25.16finance the property, and with the approval of the commissioner. A lease or management 25.17contract, including any renewals that are solely at the option of the lessee, must be for a 25.18term substantially less than the useful life of the property, but may allow renewal beyond 25.19that term upon a determination by the lessor that the lessee has demonstrated that the use 25.20continues to carry out the governmental program. If the lessor and lessee do not renew the 25.21lease or management contract and if the lessee has contributed to the land and the capital 25.22improvements on the state bond financed property, the lessor may agree to reimburse the 25.23lessee for its investment in the land and capital improvements. The reimbursement may be 25.24paid, at the option of the lessor and lessee, at the time of nonrenewal without a requirement 25.25for a prior escrow of funds or at a later date and on additional terms agreed to by the lessor 25.26and the lessee. A lease or management contract must be terminable by the contracting 25.27public officer or agency if the other contracting party defaults under the contract or if the 25.28governmental program is terminated or changed, and must provide for program oversight 25.29by the contracting public officer or agency. The expiration or termination of a lease or 25.30management agreement does not require that the state bond proceeds be repaid or that 25.31the property be sold, so long as the property continues to be operated by, or on behalf of, 25.32the public officer or agency for the intended governmental program. Money received by 25.33the public officer or agency under the lease or management contract that is not needed 25.34to pay and not authorized to be used to pay operating costs of the property, or to pay the 26.1principal, interest, redemption premiums, and other expenses when due on debt related to 26.2the property other than state bonds, must be:26.3    (1) paid to the commissioner in the same proportion as the state bond financing is 26.4to the total public debt financing for the property, excluding debt issued by a unit of 26.5government for which it has no financial liability;26.6    (2) deposited in the state bond fund; and26.7    (3) used to pay or redeem or defease bonds issued to finance the property in 26.8accordance with the commissioner's order authorizing their issuance.26.9    The money paid to the commissioner is appropriated for this purpose.26.10    (c) With the approval of the commissioner, a lease or management contract between 26.11a city and a nonprofit corporation under section 
         471.191, subdivision 1, need not require 26.12the lessee to pay rentals sufficient to pay the principal, interest, redemption premiums, 26.13and other expenses when due with respect to state bonds issued to acquire and better 26.14the facilities. 26.15EFFECTIVE DATE.This section is effective retroactively from January 1, 2006, 26.16and applies to leases, grant agreements, or management agreements entered into on or 26.17after that date.26.18    Sec. 15. Minnesota Statutes 2006, section 16A.695, subdivision 3, is amended to read:26.19    Subd. 3. Sale of property. A public officer or agency shall not sell any state bond 26.20financed property unless the public officer or agency determines by official action that 26.21the property is no longer usable or needed by the public officer or agency to carry out 26.22the governmental program for which it was acquired or constructed, the sale is made as 26.23authorized by law, the sale is made for fair market value, and the sale is approved by the 26.24commissioner. If any state bonds issued to purchase or better the state bond financed 26.25property that is sold remain outstanding on the date of sale, the net proceeds of sale must 26.26be applied as follows:26.27    (1) if the state bond financed property was acquired and bettered solely with state 26.28bond proceeds, the net proceeds of sale must be paid to the commissioner,and deposited 26.29in the state bond fund, and used to pay or redeem or defease the outstanding state bonds in 26.30accordance with the commissioner's order authorizing their issuance, and the proceeds are 26.31appropriated for this purpose treasury; or26.32    (2) if the state bond financed property was acquired or bettered partly with state 26.33bond proceeds and partly with other money, the net proceeds of sale must be used: first, to 26.34pay to the state the amount of state bond proceeds used to acquire or better the property; 26.35second, to pay in full any outstanding public or private debt incurred to acquire or better 27.1the property; and third, to pay interested public and private entities, other than any 27.2public officer or agency or any private lender already paid in full, the amount of money 27.3contributed to the acquisition or betterment of the property; and fourth, any excess over the 27.4amount needed for those purposes must be divided in proportion to the shares contributed 27.5to the acquisition or betterment of the property and paid to the interested public and 27.6private entities, other than any private lender already paid in full, and the proceeds are 27.7appropriated for this purpose. In calculating the share contributed by each entity, the 27.8amount to be attributed to the owner of the property shall be the fair market value of the 27.9property that was bettered by state bond proceeds at the time the betterment began.27.10    When all of the net proceeds of sale have been applied as provided in this 27.11subdivision, this section no longer applies to the property.27.12EFFECTIVE DATE.This section is effective retroactively from January 1, 2006, 27.13and applies to leases, grant agreements, or management agreements entered into on or 27.14after that date.27.15    Sec. 16. Minnesota Statutes 2006, section 16A.695, is amended by adding a 27.16subdivision to read:27.17    Subd. 6.Match requirements.Recipients of grants from money appropriated 27.18from the bond proceeds fund may be required to demonstrate a commitment of money 27.19from nonstate sources. This matching money may be pledged payments that have been 27.20deposited into a segregated account or multiyear pledges that are converted into cash or 27.21cash equivalent through a loan or irrevocable letter of credit from a financial institution. 27.22The loan or irrevocable letter of credit may be secured by a lien on the state bond financed 27.23property.27.24EFFECTIVE DATE.This section is effective retroactively from January 1, 2006, 27.25and applies to leases, grant agreements, or management agreements entered into on or 27.26after that date.27.27    Sec. 17. Minnesota Statutes 2006, section 16A.695, is amended by adding a 27.28subdivision to read:27.29    Subd. 7.Ground lease for state bond financed property.A public officer or 27.30agency, as lessee, may lease real property and improvements that are to be acquired or 27.31improved with state bond proceeds. The lease must be for a term equal to or longer than 27.32125 percent of the useful life of the property. The expiration of the lease upon the end of 28.1its term does not require that the state be repaid or that the property be sold and upon the 28.2expiration the real property and improvements are no longer state bond financed property.28.3EFFECTIVE DATE.This section is effective retroactively from January 1, 2006, 28.4and applies to leases, grant agreements, or management agreements entered into on or 28.5after that date.28.6    Sec. 18. Minnesota Statutes 2006, section 16A.695, is amended by adding a 28.7subdivision to read:28.8    Subd. 8.General applicability.(a) This section establishes requirements for 28.9the receipt and use of general obligation grants and the ownership and operation of 28.10state bond-financed property. General obligation grants may only be issued and used to 28.11finance the acquisition and betterment of public lands and buildings and other public 28.12improvements of a capital nature that are used to operate a governmental program, and 28.13for predesign and design activities for specifically identified projects that involve the 28.14operation of a governmental program or activity. A general obligation grant may not be 28.15used for general operating expenses, staffing, or general master planning. A public officer 28.16or agency that is the recipient of a general obligation grant must comply with this section 28.17in its use of the general obligation grant and operation, management, lease, and sale 28.18of state bond-financed property. A public officer or agency that uses the proceeds of a 28.19general obligation grant for any unauthorized purpose or in violation of this section must 28.20immediately repay the outstanding balance of the grant to the commissioner, and a failure 28.21to comply authorizes the commissioner to recover the outstanding balance as a setoff 28.22against any state aid provided to the public officer or agency.28.23    (b) This section does not create any new authority regarding the ownership, 28.24construction, rehabilitation, use, operation, lease management, or sale of state 28.25bond-financed property, or the operation of the governmental program that will be 28.26operated on the property. Any authority that is needed to enter into a management contract 28.27or lease of property, to sell property, or to operate a governmental program or carry out 28.28any activity contained in the law that appropriates money for a general obligation grant 28.29must be provided by as contained in some other law.28.30EFFECTIVE DATE.This section is effective on and after July 1, 2007.28.31    Sec. 19. Minnesota Statutes 2006, section 16A.695, is amended by adding a 28.32subdivision to read:29.1    Subd. 9.Grant agreement.All general obligation grants must be evidenced by 29.2a grant agreement that specifies:29.3    (1) how the general obligation grant will be used;29.4    (2) the governmental program that will be operated on the state bond-financed 29.5property; and29.6    (3) that the state bond-financed property must be operated in compliance with this 29.7section, all state and federal laws, and in a manner that will not cause the interest on the 29.8state general obligation bonds to be or become subject to federal income taxation for any 29.9reason. A grant agreement must comply with this section, the Minnesota Constitution, 29.10and all commissioner's orders, and also contain other provisions the commissioner of the 29.11agency making the grant deems appropriate. The commissioner shall draft and make 29.12available forms for grant agreements that satisfy the requirements of this subdivision.29.13EFFECTIVE DATE.This section is effective on and after July 1, 2007.29.14    Sec. 20. Minnesota Statutes 2006, section 16B.055, subdivision 1, is amended to read:29.15    Subdivision 1. Governor's Advisory Council on Technology for People with 29.16Disabilities Federal Assistive Technology Act.(a) The Department of Administration 29.17shall serve as the lead agency to assist the Minnesota Governor's Advisory Council on 29.18Technology for People with Disabilities in carrying out all responsibilities pursuant to 29.19United States Code, title 29, section 2211 et seq., and any other responsibilities related 29.20to that program is designated as the lead agency to carry out all the responsibilities 29.21under the Assistive Technology Act of 1998, as provided by Public Law 108-364, as 29.22amended. The Minnesota Assistive Technology Advisory Council is established to fulfill 29.23the responsibilities required by the Assistive Technology Act, as provided by Public Law 29.24108-364, as amended. Because the existence of this council is required by federal law, this 29.25council does not expire and the expiration date provided in section 15.059, subdivision 29.265, does not apply.29.27    (b) The governor shall appoint the membership of the council as required by the 29.28Assistive Technology Act of 1998, as provided by Public Law 108-364, as amended. 29.29After the governor has completed the appointments required by this subdivision, the 29.30commissioner of administration, or the commissioner's designee, shall convene the first 29.31meeting of the council following the appointments. Members shall serve two-year 29.32terms commencing July 1 of each odd-numbered year, and receive the compensation 29.33specified by the Assistive Technology Act of 1998, as provided by Public Law 108-364, as 29.34amended. The members of the council shall select their chair at the first meeting following 29.35their appointment.30.1    Sec. 21. Minnesota Statutes 2006, section 16B.24, subdivision 5, is amended to read:30.2    Subd. 5. Renting out state property. (a) Authority.  The commissioner may rent 30.3out state property, real or personal, that is not needed for public use, if the rental is not 30.4otherwise provided for or prohibited by law. The property may not be rented out for 30.5more than five years at a time without the approval of the State Executive Council and 30.6may never be rented out for more than 25 years. A rental agreement may provide that 30.7the state will reimburse a tenant for a portion of capital improvements that the tenant 30.8makes to state real property if the state does not permit the tenant to renew the lease at 30.9the end of the rental agreement. 30.10    (b)  Restrictions. Paragraph (a) does not apply to state trust fund lands, other state 30.11lands under the jurisdiction of the Department of Natural Resources, lands forfeited for 30.12delinquent taxes, lands acquired under section 
         298.22, or lands acquired under section 30.1341.56
          which are under the jurisdiction of the Department of Agriculture. 30.14    (c)  Rental of living accommodations. The commissioner shall establish rental rates 30.15for all living accommodations provided by the state for its employees. Money collected as 30.16rent by state agencies pursuant to this paragraph must be deposited in the state treasury 30.17and credited to the general fund. 30.18    (d)  Lease of space in certain state buildings to state agencies. The commissioner 30.19may lease portions of the state-owned buildings in the Capitol complex, the Capitol 30.20Square Building, the Health Building, and the building at 1246 University Avenue, St. 30.21Paul, Minnesota,under the custodial control of the commissioner to state agencies and 30.22the court administrator on behalf of the judicial branch of state government and charge 30.23rent on the basis of space occupied. Notwithstanding any law to the contrary, all money 30.24collected as rent pursuant to the terms of this section shall be deposited in the state 30.25treasury. Money collected as rent to recover the bond interest costs of a building funded 30.26from the state bond proceeds fund shall be credited to the general fund. Money collected 30.27as rent to recover the depreciation costs of a building funded from the state bond proceeds 30.28fund and money collected as rent to recover capital expenditures from capital asset 30.29preservation and replacement appropriations and statewide building access appropriations 30.30shall be credited to a segregated asset preservation and replacement account in a special 30.31revenue fund. Fifty percent of the money credited to the account each fiscal year must 30.32be transferred to the general fund. The remaining money in the account is appropriated 30.33to the commissioner to be expended for asset preservation projects as determined by the 30.34commissioner. Money collected as rent to recover the depreciation and interest costs of 30.35a building built with other state dedicated funds shall be credited to the dedicated fund 31.1which funded the original acquisition or construction. All other money received shall be 31.2credited to the general services revolving fund. 31.3    (e) Lease of space in Andersen and Freeman buildings.The commissioner may 31.4lease space in the Elmer L. Andersen and Orville L. Freeman buildings to state agencies 31.5and charge rent on the basis of space occupied. Money collected as rent under this 31.6paragraph to fund future building repairs must be credited to a segregated account for each 31.7building in the special revenue fund and is appropriated to the commissioner to make 31.8the repairs. When the state acquires title to each building, the account for that building 31.9must be abolished and any balance remaining in the account must be transferred to the 31.10appropriate asset preservation and replacement account created under paragraph (d).31.11    Sec. 22. Minnesota Statutes 2006, section 16B.35, subdivision 1, is amended to read:31.12    Subdivision 1. Percent of appropriations for art. An appropriation for the 31.13construction or alteration of any state building may contain an amount not to exceed 31.14the lesser of $100,000 or one percent of the total appropriation for the building for the 31.15acquisition of works of art, excluding landscaping, which may be an integral part of the 31.16building or its grounds, attached to the building or grounds or capable of being displayed 31.17in other state buildings. If the appropriation for works of art is limited by the $100,000 31.18cap in this section, the appropriation for the construction or alteration of the building must 31.19be reduced to reflect the reduced amount that will be spent on works of art. Money used 31.20for this purpose is available only for the acquisition of works of art to be exhibited in areas 31.21of a building or its grounds accessible, on a regular basis, to members of the public. No 31.22more than ten percent of the total amount available each fiscal year under this subdivision 31.23may be used for administrative expenses, either by the commissioner of administration or 31.24by any other entity to whom the commissioner delegates administrative authority. For the 31.25purposes of this section "state building" means a building the construction or alteration of 31.26which is paid for wholly or in part by the state.31.27EFFECTIVE DATE.This section is effective July 1, 2007. The repeal of the 31.28$100,000 limit in this section applies to appropriations made before, on, or after that date.31.29    Sec. 23. [16B.97] GRANTS MANAGEMENT.31.30    Subdivision 1.Grant agreement.(a) A grant agreement is a written instrument or 31.31electronic document defining a legal relationship between a granting agency and a grantee 31.32when the principal purpose of the relationship is to transfer cash or something of value 31.33to the recipient to support a public purpose authorized by law instead of acquiring by 32.1professional or technical contract, purchase, lease, or barter property or services for the 32.2direct benefit or use of the granting agency.32.3    (b) This section does not apply to capital project grants to political subdivisions as 32.4defined by section 16A.86.32.5    Subd. 2.Grants governance.The commissioner shall provide leadership and 32.6direction for policy related to grants management in Minnesota in order to foster more 32.7consistent, streamlined interaction between executive agencies, funders, and grantees that 32.8will enhance access to grant opportunities and information and lead to greater program 32.9accountability and transparency. The commissioner has the duties and powers stated in this 32.10section. An executive agency must do what the commissioner requires under this section.32.11    Subd. 3.Discretionary powers.The commissioner has the authority to:32.12    (1) review grants management practices and propose policy and procedure 32.13improvements to the governor, legislature, executive agencies, and the federal government;32.14    (2) sponsor, support, and facilitate innovative and collaborative grants management 32.15projects with public and private organizations;32.16    (3) review, recommend, and implement alternative strategies for grants management;32.17    (4) collect and disseminate information, issue reports relating to grants management, 32.18and sponsor and conduct conferences and studies; and32.19    (5) participate in conferences and other appropriate activities related to grants 32.20management issues.32.21    Subd. 4.Duties.(a) The commissioner shall:32.22    (1) create general grants management policies and procedures that are applicable to 32.23all executive agencies. The commissioner may approve exceptions to these policies and 32.24procedures for particular grant programs. Exceptions shall expire or be renewed after five 32.25years. Executive agencies shall retain management of individual grants programs;32.26    (2) provide a central point of contact concerning statewide grants management 32.27policies and procedures;32.28    (3) serve as a resource to executive agencies in such areas as training, evaluation, 32.29collaboration, and best practices in grants management;32.30    (4) ensure grants management needs are considered in the development, upgrade, 32.31and use of statewide administrative systems and leverage existing technology wherever 32.32possible;32.33    (5) oversee and approve future professional and technical service contracts and 32.34other information technology spending related to executive agency grants management 32.35activities;33.1    (6) provide a central point of contact for comments about executive agencies 33.2violating statewide grants governance policies and about fraud and waste in grants 33.3processes;33.4    (7) forward received comments to the appropriate agency for further action, and may 33.5follow up as necessary; 33.6    (8) provide a single listing of all available executive agency competitive grant 33.7opportunities and resulting grant recipients;33.8    (9) selectively review development and implementation of executive agency grants, 33.9policies, and practices; and33.10    (10) selectively review executive agency compliance with best practices.33.11    (b) The commissioner may determine that it is cost-effective for agencies to develop 33.12and use shared grants management technology systems. This system would be governed 33.13under section 16E.01, subdivision 3, paragraph (b).33.14    Sec. 24. [16B.98] GRANTS MANAGEMENT PROCESS.33.15    Subdivision 1.Limitation.As a condition of receiving a grant from an appropriation 33.16of state funds, the recipient of the grant must agree to minimize administrative costs. The 33.17granting agency is responsible for negotiating appropriate limits to these costs so that the 33.18state derives the optimum benefit for grant funding.33.19    Subd. 2.Ethical practices and conflict of interest.An employee of the executive 33.20branch involved directly or indirectly in grants processes, at any level, is subject to the 33.21code of ethics in section 43A.38.33.22    Subd. 3.Conflict of interest.(a) The commissioner must develop policies 33.23regarding code of ethics and conflict of interest designed to prevent conflicts of interest for 33.24employees, committee members, or others involved in the recommendation, awarding, 33.25and administration of grants. The policies must apply to employees who are directly or 33.26indirectly in the grants process, which may include the following:33.27    (1) developing request for proposals or evaluation criteria;33.28    (2) drafting, recommending, awarding, amending, revising, or entering into grant 33.29agreements;33.30    (3) evaluating or monitoring performance; or33.31    (4) authorizing payments.33.32    (b) The policies must include:33.33    (1) a process to make all parties to the grant aware of policies and laws relating to 33.34conflict of interest, and training on how to avoid and address potential conflicts; and34.1    (2) a process under which those who have a conflict of interest or a potential conflict 34.2of interest must disclose the matter.34.3    (c) If the employee, appointing authority, or commissioner determines that a conflict 34.4of interest exists, the matter shall be assigned to another employee who does not have a 34.5conflict of interest. If it is not possible to assign the matter to an employee who does not 34.6have a conflict of interest, interested personnel shall be notified of the conflict and the 34.7employee may proceed with the assignment.34.8    Subd. 4.Reporting of violations.A state employee who discovers evidence 34.9of violation of laws or rules governing grants is encouraged to report the violation or 34.10suspected violation to the employee's supervisor, the commissioner or the commissioner's 34.11designee, or the legislative auditor. The legislative auditor shall report to the Legislative 34.12Audit Commission if there are multiple complaints about the same agency. The auditor's 34.13report to the Legislative Audit Commission under this section must disclose only the 34.14number and type of violations alleged. An employee making a good faith report under this 34.15section has the protections provided for under section 181.932, prohibiting the employer 34.16from discriminating against the employee.34.17    Subd. 5.Creation and validity of grant agreements.(a) A grant agreement is 34.18not valid and the state is not bound by the grant unless:34.19    (1) the grant has been executed by the head of the agency or a delegate who is 34.20party to the grant; and34.21    (2) the accounting system shows an encumbrance for the amount of the grant in 34.22accordance with policy approved by the commissioner.34.23    (b) The combined grant agreement and amendments must not exceed five years 34.24without specific, written approval by the commissioner according to established policy, 34.25procedures, and standards, or unless the commissioner determines that a longer duration is 34.26in the best interest of the state.34.27    (c) A fully executed copy of the grant agreement with all amendments and other 34.28required records relating to the grant must be kept on file at the granting agency for a time 34.29equal to that required of grantees in subdivision 8.34.30    (d) Grant agreements must comply with policies established by the commissioner 34.31for minimum grant agreement standards and practices.34.32    (e) The attorney general may periodically review and evaluate a sample of state 34.33agency grants to ensure compliance with applicable laws.34.34    Subd. 6.Grant administration.A granting agency shall diligently administer 34.35and monitor any grant it has entered into.35.1    Subd. 7.Grant payments.Payments to the grantee may not be issued until the 35.2grant agreement is fully executed.35.3    Subd. 8.Audit.(a) A grant agreement made by an executive agency must include an 35.4audit clause that provides that the books, records, documents, and accounting procedures 35.5and practices of the grantee or other party that are relevant to the grant or transaction are 35.6subject to examination by the granting agency and either the legislative auditor or the state 35.7auditor, as appropriate, for a minimum of six years from the grant agreement end date, 35.8receipt and approval of all final reports, or the required period of time to satisfy all state 35.9and program retention requirements, whichever is later. If a grant agreement does not 35.10include an express audit clause, the audit authority under this subdivision is implied.35.11    (b) If the granting agency is a local unit of government, and the governing body of 35.12the local unit of government requests that the state auditor examine the books, records, 35.13documents, and accounting procedures and practices of the grantee or other party 35.14according to this subdivision, the granting agency shall be liable for the cost of the 35.15examination. If the granting agency is a local unit of government, and the grantee or other 35.16party requests that the state auditor examine all books, records, documents, and accounting 35.17procedures and practices related to the grant, the grantee or other party that requested the 35.18examination shall be liable for the cost of the examination.35.19    Subd. 9.Authority of attorney general.The attorney general may pursue 35.20remedies available by law to avoid the obligation of an agency to pay under a grant or to 35.21recover payments made if activities under the grant are so unsatisfactory, incomplete, or 35.22inconsistent that payment would involve unjust enrichment. The contrary opinion of the 35.23granting agency does not affect the power of the attorney general under this subdivision.35.24    Subd. 10.Grants with Indian tribes and bands.Notwithstanding any other law, 35.25an agency may not require an Indian tribe or band to deny its sovereignty as a requirement 35.26or condition of a grant with an agency.35.27    Sec. 25. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision 35.28to read:35.29    Subd. 3a.Best and final offer."Best and final offer" means an optional step in 35.30the solicitation process in which responders are requested to improve their response by 35.31methods including, but not limited to, the reduction of cost, clarification or modification of 35.32the response, or the provision of additional information.35.33    Sec. 26. Minnesota Statutes 2006, section 16C.02, subdivision 4, is amended to read:36.1    Subd. 4. Best value. "Best value" describes a result intended in the acquisition of all 36.2goods and services. Price must be one of the evaluation criteria when acquiring goods 36.3and services. Other evaluation criteria may include, but are not limited to, environmental 36.4considerations, quality, and vendor performance. In achieving "best value" strategic 36.5sourcing tools, including but not limited to best and final offers, negotiations, contract 36.6consolidation, product standardization, and mandatory-use enterprise contracts shall be 36.7used at the commissioner's discretion.36.8    Sec. 27. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision 36.9to read:36.10    Subd. 6a.Enterprise procurement."Enterprise procurement" means the process 36.11undertaken by the commissioner to leverage economies of scale of multiple end users to 36.12achieve cost savings and other favorable terms in contracts for goods and services.36.13    Sec. 28. Minnesota Statutes 2006, section 16C.02, subdivision 12, is amended to read:36.14    Subd. 12. Request for proposal or RFP. "Request for proposal" or "RFP" means a 36.15solicitation in which it is not advantageous to set forth all the actual, detailed requirements 36.16at the time of solicitation and responses are subject to negotiation negotiated to achieve 36.17best value for the state.36.18    Sec. 29. Minnesota Statutes 2006, section 16C.02, subdivision 14, is amended to read:36.19    Subd. 14. Response. "Response" means the offer received from a vendor in 36.20response to a solicitation. A response includes submissions commonly referred to as 36.21"offers," "bids," "quotes," or "proposals.," "best and final offers," or "negotiated offers."36.22    Sec. 30. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision 36.23to read:36.24    Subd. 20.Strategic sourcing."Strategic sourcing" means methods used to 36.25analyze and reduce spending on goods and services, including but not limited to 36.26spend analysis, product standardization, contract consolidation, negotiations, multiple 36.27jurisdiction purchasing alliances, reverse and forward auctions, life-cycle costing, and 36.28other techniques.36.29    Sec. 31. Minnesota Statutes 2006, section 16C.03, subdivision 2, is amended to read:36.30    Subd. 2. Rulemaking authority. Subject to chapter 14, the commissioner may 36.31adopt rules, consistent with this chapter and chapter 16B, relating to the following topics:37.1    (1) procurement process including solicitations and responses to solicitations, bid 37.2security, vendor errors, opening of responses, award of contracts, tied bids, and award 37.3protest process;37.4    (2) contract performance and failure to perform;37.5    (3) authority to debar or suspend vendors, and reinstatement of vendors;37.6    (4) contract cancellation;37.7    (5) procurement from rehabilitation facilities; and37.8    (6) organizational conflicts of interest.37.9    Sec. 32. Minnesota Statutes 2006, section 16C.03, subdivision 4, is amended to read:37.10    Subd. 4. Contracting authority. The commissioner shall conduct all contracting by, 37.11for, and between agencies and perform all contract management and review functions for 37.12contracts, except those functions specifically delegated to be performed by the contracting 37.13agency, the attorney general, or otherwise provided for by law. The commissioner may 37.14require that agency staff participate in the development of enterprise procurements 37.15including the development of product standards, specifications and other requirements.37.16    Sec. 33. Minnesota Statutes 2006, section 16C.03, subdivision 8, is amended to read:37.17    Subd. 8. Policy and procedures. The commissioner is authorized to issue policies, 37.18procedures, and standards applicable to all acquisition activities by and for agencies.37.19Consistent with the authority specified in this chapter, the commissioner shall develop 37.20and implement policies, procedures, and standards ensuring the optimal use of strategic 37.21sourcing techniques.37.22    Sec. 34. Minnesota Statutes 2006, section 16C.03, subdivision 16, is amended to read:37.23    Subd. 16. Delegation of duties. The commissioner may delegate duties imposed by 37.24this chapter to the head of an agency and to any subordinate of the agency head. Delegated 37.25duties shall be exercised in the name of the commissioner and under the commissioner's 37.26direct supervision and control. A delegation of duties may include, but is not limited to, 37.27allowing individuals within agencies to acquire goods, services, and utilities within dollar 37.28limitations and for designated types of acquisitions. Delegation of contract management 37.29and review functions must be filed with the secretary of state and may not, except with 37.30respect to delegations within the Department of Administration, exceed two years in 37.31duration. The commissioner may withdraw any delegation at the commissioner's sole 37.32discretion. The commissioner may require an agency head or subordinate to accept 38.1delegated responsibility to procure goods or services intended for the exclusive use of the 38.2agency receiving the delegation.38.3    Sec. 35. [16C.046] WEB SITE WITH SEARCHABLE DATABASE ON STATE 38.4CONTRACTS AND GRANTS.38.5    (a) The commissioner of administration must maintain a Web site with a searchable 38.6database providing the public with information on state contracts, including grant 38.7contracts. The database must include the following information for each state contract 38.8valued in excess of $25,000:38.9    (1) the name and address of the entity receiving the contract;38.10    (2) the name of the agency entering into the contract;38.11    (3) whether the contract is:38.12    (i) for goods;38.13    (ii) for professional or technical services;38.14    (iii) for services other than professional and technical services; or38.15    (iv) a grant;38.16    (4) a brief statement of the purpose of the contract or grant;38.17    (5) the amount of the contract or grant and the fund from which this amount will be 38.18paid; and38.19    (6) the dollar value of state contracts, other than grants, the entity has received in each 38.20fiscal year and the dollar value of state grants the entity has received in each fiscal year.38.21    (b) Required information on a new contract or grant must be entered into the 38.22database within 30 days of the time the contract is entered into.38.23    (c) For purposes of this section, a "grant" is a contract between a state agency and 38.24a recipient, the primary purpose of which is to transfer cash or a thing of value to the 38.25recipient to support a public purpose. Grant does not include payments to units of local 38.26government, payments to state employees, or payments made under laws providing for 38.27assistance to individuals.38.28    (d) The database must include information on grants and contracts entered into 38.29beginning with fiscal year 2008 funds, and must retain that data for ten years.38.30EFFECTIVE DATE.This section is effective January 1, 2008.38.31    Sec. 36. Minnesota Statutes 2006, section 16C.05, subdivision 1, is amended to read:38.32    Subdivision 1. Agency cooperation. Agencies shall fully cooperate with the 38.33commissioner in the management and review of state contracts and in the development 38.34and implementation of strategic sourcing techniques.39.1    Sec. 37. Minnesota Statutes 2006, section 16C.05, subdivision 2, is amended to read:39.2    Subd. 2. Creation and validity of contracts. (a) A contract is not valid and the state 39.3is not bound by it and no agency, without the prior written approval of the commissioner 39.4granted pursuant to subdivision 2a, may authorize work to begin on it unless:39.5    (1) it has first been executed by the head of the agency or a delegate who is a party 39.6to the contract;39.7    (2) it has been approved by the commissioner; and39.8    (3) the accounting system shows an encumbrance for the amount of the contract 39.9liability, except as allowed by policy approved by the commissioner and commissioner of 39.10finance for routine, low-dollar procurements.39.11    (b) The combined contract and amendments must not exceed five years without 39.12specific, written approval by the commissioner according to established policy, procedures, 39.13and standards, or unless otherwise provided for by law. The term of the original contract 39.14must not exceed two years unless the commissioner determines that a longer duration is 39.15in the best interest of the state.39.16    (c) Grants, interagency agreements, purchase orders, work orders, and annual plans 39.17need not, in the discretion of the commissioner and attorney general, require the signature 39.18of the commissioner and/or the attorney general. A signature is not required for work 39.19orders and amendments to work orders related to Department of Transportation contracts. 39.20Bond purchase agreements by the Minnesota Public Facilities Authority do not require 39.21the approval of the commissioner.39.22    (d) Amendments to contracts must entail tasks that are substantially similar to 39.23those in the original contract or involve tasks that are so closely related to the original 39.24contract that it would be impracticable for a different contractor to perform the work. The 39.25commissioner or an agency official to whom the commissioner has delegated contracting 39.26authority under section 
         16C.03, subdivision 16, must determine that an amendment would 39.27serve the interest of the state better than a new contract and would cost no more. 39.28    (e) A fully executed copy of every contract, amendments to the contract, and 39.29performance evaluations relating to the contract must be kept on file at the contracting 39.30agency for a time equal to that specified for contract vendors and other parties in 39.31subdivision 5.39.32    (f) The attorney general must periodically review and evaluate a sample of state 39.33agency contracts to ensure compliance with laws.39.34    Sec. 38. Minnesota Statutes 2006, section 16C.08, is amended by adding a subdivision 39.35to read:40.1    Subd. 1a.Enterprise procurement.Notwithstanding section 15.061 or any 40.2other law, the commissioner shall, to the fullest extent practicable, conduct enterprise 40.3procurements that result in the establishment of professional or technical contracts for 40.4use by multiple state agencies. The commissioner is authorized to mandate use of any 40.5contract entered into as a result of an enterprise procurement process. Agencies shall fully 40.6cooperate in the development and use of contracts entered into under this section.40.7    Sec. 39. Minnesota Statutes 2006, section 16C.08, subdivision 2, is amended to read:40.8    Subd. 2. Duties of contracting agency. (a) Before an agency may seek approval of 40.9a professional or technical services contract valued in excess of $5,000, it must provide 40.10the following:40.11    (1) a description of how the proposed contract or amendment is necessary and 40.12reasonable to advance the statutory mission of the agency;40.13    (2) a description of the agency's plan to notify firms or individuals who may be 40.14available to perform the services called for in the solicitation; and40.15    (3) a description of the performance measures or other tools that will be used to 40.16monitor and evaluate contract performance.; and40.17    (4) an explanation detailing, if applicable, why this procurement is being pursued 40.18unilaterally by the agency and not as an enterprise procurement.40.19    (b) In addition to paragraph (a), the agency must certify that:40.20    (1) no current state employee is able and available to perform the services called 40.21for by the contract;40.22    (2) the normal competitive bidding mechanisms will not provide for adequate 40.23performance of the services;40.24    (3) reasonable efforts will be made to publicize the availability of the contract to 40.25the public;40.26    (4) the agency will develop and implement a written plan providing for the 40.27assignment of specific agency personnel to manage the contract, including a monitoring 40.28and liaison function, the periodic review of interim reports or other indications of past 40.29performance, and the ultimate utilization of the final product of the services;40.30    (5) the agency will not allow the contractor to begin work before the contract is fully 40.31executed unless an exception under section 
         16C.05, subdivision 2a, has been granted by 40.32the commissioner and funds are fully encumbered; 40.33    (6) the contract will not establish an employment relationship between the state or 40.34the agency and any persons performing under the contract; and41.1    (7) in the event the results of the contract work will be carried out or continued by 41.2state employees upon completion of the contract, the contractor is required to include 41.3state employees in development and training, to the extent necessary to ensure that after 41.4completion of the contract, state employees can perform any ongoing work related to 41.5the same function.; and41.6    (8) the agency will not contract out its previously eliminated jobs for four years 41.7without first considering the same former employees who are on the seniority unit layoff 41.8list who meet the minimum qualifications determined by the agency.41.9    (c) A contract establishes an employment relationship for purposes of paragraph (b), 41.10clause (6), if, under federal laws governing the distinction between an employee and an 41.11independent contractor, a person would be considered an employee.41.12    Sec. 40. Minnesota Statutes 2006, section 16C.08, subdivision 4, is amended to read:41.13    Subd. 4. Reports. (a) The commissioner shall submit to the governor, the chairs of 41.14the house Ways and Means and senate Finance Committees, and the Legislative Reference 41.15Library a yearly listing of all contracts for professional or technical services executed. 41.16The report must identify the contractor, contract amount, duration, and services to be 41.17provided. The commissioner shall also issue yearly reports summarizing the contract 41.18review activities of the department by fiscal year.41.19    (b) The fiscal year report must be submitted by September 1 of each year and must:41.20    (1) be sorted by agency and by contractor;41.21    (2) show the aggregate value of contracts issued by each agency and issued to each 41.22contractor;41.23    (3) distinguish between contracts that are being issued for the first time and contracts 41.24that are being extended;41.25    (4) state the termination date of each contract;41.26    (5) identify services by commodity code, including topics such as contracts for 41.27training, contracts for research and opinions, and contracts for computer systems; and41.28    (6) identify which contracts were awarded without following the solicitation process 41.29in this chapter because it was determined that there was only a single source for the 41.30services.41.31    (c) Within 30 days of final completion of a contract over $50,000 covered by this 41.32subdivision, the head of the agency entering into the contract must submit a one-page 41.33report to the commissioner who must submit a copy to the Legislative Reference Library. 41.34The report must:42.1    (1) summarize the purpose of the contract, including why it was necessary to enter 42.2into a contract;42.3    (2) state the amount spent on the contract;42.4    (3) be accompanied by the performance evaluation prepared according to subdivision 42.54a; and42.6    (4)(3) if the contract was awarded without following the solicitation process in this 42.7chapter because it was determined that there was only a single source for the services, 42.8explain why the agency determined there was only a single source for the services.; and42.9    (4) include a written performance evaluation of the work done under the contract. 42.10The evaluation must include an appraisal of the contractor's timeliness, quality, cost, and 42.11overall performance in meeting the terms and objectives of the contract. Contractors may 42.12request copies of evaluations prepared under this subdivision and may respond in writing. 42.13Contractor responses must be maintained with the contract file.42.14    Sec. 41. Minnesota Statutes 2006, section 16C.08, is amended by adding a subdivision 42.15to read:42.16    Subd. 4b.Limitations on actions.No action may be maintained by a contractor 42.17against an employee or agency who discloses information about a current or former 42.18contractor under subdivision 4, unless the contractor demonstrates by clear and convincing 42.19evidence that:42.20    (1) the information was false and defamatory;42.21    (2) the employee or agency knew or should have known the information was false 42.22and acted with malicious intent to injure the current or former contractor; and42.23    (3) the information was acted upon in a manner that caused harm to the current or 42.24former contractor.42.25    Sec. 42. [16C.086] CALL-CENTER.42.26    An agency may not enter into a contract for operation of a call-center, or a contract 42.27whose primary purpose is to provide similar services answering or responding to telephone 42.28calls on behalf of an agency without determining if the service can be provided by state 42.29employees, and the services must be provided at offices located in the United States. For 42.30purposes of this section, "agency" includes the Minnesota State Colleges and Universities.42.31EFFECTIVE DATE.This section is effective the day following final enactment, 42.32and applies to a contract entered into or renewed or otherwise extended after that date.42.33    Sec. 43. Minnesota Statutes 2006, section 16C.10, subdivision 7, is amended to read:43.1    Subd. 7. Reverse auction. (a) For the purpose of this subdivision, "reverse auction" 43.2means a purchasing process in which vendors compete to provide goods or computer43.3services at the lowest selling price in an open and interactive environment. Reverse 43.4auctions may not be utilized to procure engineering design services or architectural 43.5services or to establish building and construction contracts under sections 16C.26 to 43.616C.29.43.7    (b) The provisions of sections 
         13.591, subdivision 3, and 
         16C.06, subdivision 2, 43.8do not apply when the commissioner determines that a reverse auction is the appropriate 43.9purchasing process.43.10    Sec. 44. [16C.147] DOCUMENT IMAGING; USE OF PERSONS WITH 43.11DEVELOPMENTAL DISABILITIES.43.12    The commissioner shall promote the use of persons with developmental disabilities 43.13to provide document imaging services for state and local government agencies.43.14    Sec. 45. Minnesota Statutes 2006, section 16C.16, subdivision 5, is amended to read:43.15    Subd. 5. Designation of targeted groups. (a) The commissioner of administration 43.16shall periodically designate businesses that are majority owned and operated by women, 43.17persons with a substantial physical disability, or specific minorities as targeted group 43.18businesses within purchasing categories as determined by the commissioner. A group 43.19may be targeted within a purchasing category if the commissioner determines there is a 43.20statistical disparity between the percentage of purchasing from businesses owned by 43.21group members and the representation of businesses owned by group members among all 43.22businesses in the state in the purchasing category.43.23    (b) In addition to designations under paragraph (a), an individual business may be 43.24included as a targeted group business if the commissioner determines that inclusion is 43.25necessary to remedy discrimination against the owner based on race, gender, or disability 43.26in attempting to operate a business that would provide goods or services to public agencies.43.27    (c) In addition to the designations under paragraphs (a) and (b), the commissioner of 43.28administration shall designate businesses that are majority owned and operated by veterans 43.29who have served in federal active service as defined in section 190.05, subdivision 5c, in 43.30support of Operation Enduring Freedom or Operation Iraqi Freedom as targeted group 43.31businesses within purchasing categories as determined by the commissioner. "Veteran" 43.32has the meaning given in section 197.447, and also includes both currently serving and 43.33honorably discharged members of the national guard and other military reserves.44.1    (c) (d) The designations of purchasing categories and businesses under paragraphs 44.2(a) and, (b), and (c) are not rules for purposes of chapter 14, and are not subject to 44.3rulemaking procedures of that chapter.44.4EFFECTIVE DATE.This section is effective July 1, 2007, and applies to 44.5procurement contract bid solicitations issued on and after that date.44.6    Sec. 46. [16C.251] BEST AND FINAL OFFER.44.7    A "best and final offer" solicitation process may not be used for building and 44.8construction contracts.44.9    Sec. 47. Minnesota Statutes 2006, section 43A.08, subdivision 2a, is amended to read:44.10    Subd. 2a. Temporary unclassified positions. The commissioner, upon request of 44.11an appointing authority, may authorize the temporary designation of a position in the 44.12unclassified service. The commissioner may make this authorization only for professional, 44.13managerial or supervisory positions which are fully anticipated to be of limited duration.44.14An individual may not be employed by an appointing authority under this subdivision 44.15for more than 18 months.44.16EFFECTIVE DATE.For individuals who are employed under section 43A.08, 44.17subdivision 2a, on the effective date of this section, the 18-month time limit under this 44.18section commences the day following final enactment.44.19    Sec. 48. Minnesota Statutes 2006, section 43A.346, subdivision 1, is amended to read:44.20    Subdivision 1. Definition. For purposes of this section, "state employee" means a 44.21person currently occupying a civil service position in the executive or legislative branch of 44.22state government, the Minnesota State Retirement System, or the Office of the Legislative 44.23Auditor, or a person employed by the Metropolitan Council.44.24    Sec. 49. Minnesota Statutes 2006, section 161.1419, subdivision 8, is amended to read:44.25    Subd. 8. Expiration. The commission expires on June 30, 2007 2012.44.26EFFECTIVE DATE.This section is effective the day following final enactment.44.27    Sec. 50. Minnesota Statutes 2006, section 270B.14, is amended by adding a 44.28subdivision to read:45.1    Subd. 19.Disclosure to Department of Finance.The commissioner may disclose 45.2to the commissioner of finance returns or return information necessary in order to prepare 45.3a revenue forecast under section 16A.103.45.4    Sec. 51. Minnesota Statutes 2006, section 270C.03, subdivision 1, is amended to read:45.5    Subdivision 1. Powers and duties. The commissioner shall have and exercise 45.6the following powers and duties:45.7    (1) administer and enforce the assessment and collection of taxes;45.8    (2) make determinations, corrections, and assessments with respect to taxes, 45.9including interest, additions to taxes, and assessable penalties;45.10    (3) use statistical or other sampling techniques consistent with generally accepted 45.11auditing standards in examining returns or records and making assessments;45.12    (4) investigate the tax laws of other states and countries, and formulate and submit 45.13to the legislature such legislation as the commissioner may deem expedient to prevent 45.14evasions of state revenue laws and to secure just and equal taxation and improvement in 45.15the system of state revenue laws;45.16    (5) consult and confer with the governor upon the subject of taxation, the 45.17administration of the laws in regard thereto, and the progress of the work of the 45.18department, and furnish the governor, from time to time, such assistance and information 45.19as the governor may require relating to tax matters;45.20    (6) execute and administer any agreement with the secretary of the treasury or the 45.21Bureau of Alcohol, Tobacco, Firearms, and Explosives in the Department of Justice of the 45.22United States or a representative of another state regarding the exchange of information 45.23and administration of the state revenue laws;45.24    (7) require town, city, county, and other public officers to report information as to the 45.25collection of taxes received from licenses and other sources, and such other information 45.26as may be needful in the work of the commissioner, in such form as the commissioner 45.27may prescribe;45.28    (8) authorize the use of unmarked motor vehicles to conduct seizures or criminal 45.29investigations pursuant to the commissioner's authority; and45.30    (9) maintain toll-free telephone access for taxpayer assistance for calls from 45.31locations within the state; and45.32    (10) exercise other powers and authority and perform other duties required of or 45.33imposed upon the commissioner by law.45.34EFFECTIVE DATE.This section is effective January 1, 2008.46.1    Sec. 52. [270C.21] TAXPAYER ASSISTANCE GRANTS.46.2    When the commissioner awards grants to nonprofit organizations to coordinate, 46.3facilitate, encourage, and aid in the provision of taxpayer assistance services, the 46.4commissioner must provide public notice of the grants in a timely manner so that the 46.5grant process is completed and grants are awarded by October 1, in order for recipient 46.6organizations to adequately plan expenditures for the filing season. At the time the 46.7commissioner provides public notice, the commissioner must also notify nonprofit 46.8organizations that received grants in the previous biennium.46.9EFFECTIVE DATE.This section is effective the day following final enactment.46.10    Sec. 53. Minnesota Statutes 2006, section 302A.821, subdivision 4, is amended to read:46.11    Subd. 4. Penalty; reinstatement. (a) A corporation that has failed to file a 46.12registration pursuant to the requirements of subdivision 2 must be dissolved by the 46.13secretary of state as described in paragraph (b).46.14    (b) If the corporation has not filed the registration for two consecutiveduring 46.15any calendar years year, the secretary of state must issue a certificate of administrative 46.16dissolution and the certificate must be filed in the Office of the Secretary of State. The 46.17secretary of state shall send notice to the corporation that the corporation has been 46.18dissolved and that the corporation may be reinstated by filing a registration and a $25 fee. 46.19The notice must be given by United States mail unless the company has indicated to the 46.20secretary of state that they are willing to receive notice by electronic notification, in which 46.21case the secretary of state may give notice by mail or the indicated means. The secretary 46.22of state shall annually inform the attorney general and the commissioner of revenue of 46.23the methods by which the names of corporations dissolved under this section during the 46.24preceding year may be determined. The secretary of state must also make available in 46.25an electronic format the names of the dissolved corporations. A corporation dissolved in 46.26this manner is not entitled to the benefits of section 
         302A.781. The liability, if any, of the 46.27shareholders of a corporation dissolved in this manner shall be determined and limited in 46.28accordance with section 
         302A.557, except that the shareholders shall have no liability to 46.29any director of the corporation under section 
         302A.559, subdivision 2. 46.30    (c) After administrative dissolution, filing a registration and the $25 fee with the 46.31secretary of state:46.32    (1) returns the corporation to good standing as of the date of the dissolution;46.33    (2) validates contracts or other acts within the authority of the articles, and the 46.34corporation is liable for those contracts or acts; and47.1    (3) restores to the corporation all assets and rights of the corporation to the extent 47.2they were held by the corporation before the dissolution occurred, except to the extent that 47.3assets or rights were affected by acts occurring after the dissolution or sold or otherwise 47.4distributed after that time.47.5EFFECTIVE DATE.This section is effective January 1, 2008.47.6    Sec. 54. Minnesota Statutes 2006, section 308A.995, subdivision 4, is amended to read:47.7    Subd. 4. Penalty; dissolution. (a) A cooperative that has failed to file a registration 47.8pursuant to the requirements of this section by December 31 of the calendar year for which 47.9the registration was required must be dissolved by the secretary of state as described in 47.10paragraph (b).47.11    (b) If the cooperative has not filed the registration by December 31 of that calendar 47.12year, the secretary of state must issue a certificate of involuntary dissolution, and the 47.13certificate must be filed in the Office of the Secretary of State. The secretary of state must 47.14annually inform the attorney general and the commissioner of revenue of the methods by 47.15which the names of cooperatives dissolved under this section during the preceding year 47.16may be determined. The secretary of state must also make available in an electronic 47.17format the names of the dissolved cooperatives. A cooperative dissolved in this manner is 47.18not entitled to the benefits of section 
         308A.981. 47.19EFFECTIVE DATE.This section is effective January 1, 2008.47.20    Sec. 55. Minnesota Statutes 2006, section 308B.121, subdivision 4, is amended to read:47.21    Subd. 4. Penalty; dissolution. (a) A cooperative that has failed to file a registration 47.22under the requirements of this section must be dissolved by the secretary of state as 47.23described in paragraph (b).47.24    (b) If the cooperative has not filed the registration by December 31 of that calendar 47.25year, the secretary of state must issue a certificate of involuntary dissolution and the 47.26certificate must be filed in the Office of the Secretary of State. The secretary of state must 47.27annually inform the attorney general and the commissioner of revenue of the methods by 47.28which the names of cooperatives dissolved under this section during the preceding year 47.29may be determined. The secretary of state must also make available in an electronic 47.30format the names of the dissolved cooperatives. A cooperative dissolved in this manner is 47.31not entitled to the benefits of section 
         308B.971. 47.32EFFECTIVE DATE.This section is effective January 1, 2008.48.1    Sec. 56. Minnesota Statutes 2006, section 308B.215, subdivision 2, is amended to read:48.2    Subd. 2. Filing. The original articles and a designation of the cooperative's 48.3registered office and agent, including a registration form under section 308B.121, shall 48.4be filed with the secretary of state. The fee for filing the articles with the secretary of 48.5state is $60. 48.6EFFECTIVE DATE.This section is effective August 1, 2007.48.7    Sec. 57. [308B.903] NOTICE OF INTENT TO DISSOLVE.48.8    Before a cooperative begins dissolution, a notice of intent to dissolve must be filed 48.9with the secretary of state. The notice must contain:48.10    (1) the name of the cooperative;48.11    (2) the date and place of the members' meeting at which the resolution was 48.12approved; and48.13    (3) a statement that the requisite vote of the members approved the proposed 48.14dissolution.48.15EFFECTIVE DATE.This section is effective August 1, 2007.48.16    Sec. 58. Minnesota Statutes 2006, section 317A.823, subdivision 1, is amended to read:48.17    Subdivision 1. Annual registration. (a) The secretary of state must send annually 48.18to each corporation at the registered office of the corporation a postcard notice announcing 48.19the need to file the annual registration and informing the corporation that the annual 48.20registration may be filed online and that paper filings may also be made, and informing 48.21the corporation that failing to file the annual registration will result in an administrative 48.22dissolution of the corporation.48.23    (b) Except for corporations to which paragraph (d) applies, Each calendar year 48.24beginning in the calendar year following the calendar year in which a corporation 48.25incorporates, a corporation must file with the secretary of state by December 31 of each 48.26calendar year a registration containing the information listed in paragraph (c).48.27    (c) The registration must include:48.28    (1) the name of the corporation;48.29    (2) the address of its registered office;48.30    (3) the name of its registered agent, if any; and48.31    (4) the name and business address of the officer or other person exercising the 48.32principal functions of president of the corporation.49.1    (d) The timely filing of an annual financial report and audit or an annual financial 49.2statement under section 69.051, subdivision 1 or 1a, by a volunteer firefighter relief 49.3association, as reflected in the notification by the state auditor under section 69.051, 49.4subdivision 1c, constitutes presentation of the corporate registration. The secretary of state 49.5may reject the registration by the volunteer firefighter relief association. Rejection must 49.6occur if the information provided to the state auditor does not match the information 49.7in the records of the secretary of state. The volunteer firefighter relief association may 49.8amend the articles of incorporation as provided in sections 317A.131 to 317A.151 so 49.9that the information from the state auditor may be accepted for filing. The timely filing 49.10of an annual financial report and audit or an annual financial statement under section 49.1169.051, subdivision 1 or 1a, does not relieve the volunteer firefighter relief association 49.12of the requirement to file amendments to the articles of incorporation directly with the 49.13secretary of state. 49.14EFFECTIVE DATE.This section is effective August 1, 2007.49.15    Sec. 59. Minnesota Statutes 2006, section 321.0206, is amended to read:49.16321.0206 DELIVERY TO AND FILING OF RECORDS BY SECRETARY OF 49.17STATE; EFFECTIVE TIME AND DATE.49.18    (a) A record authorized or required to be delivered to the secretary of state for filing 49.19under this chapter must be captioned to describe the record's purpose, be in a medium 49.20permitted by the secretary of state, and be delivered to the secretary of state. Unless the 49.21secretary of state determines that a record does not comply with the filing requirements 49.22of this chapter, and if the appropriate filing fees have been paid, the secretary of state 49.23shall file the record and:49.24    (1) for a statement of dissociation, send:49.25    (A) a copy of the filed statement to the person which the statement indicates has 49.26dissociated as a general partner; and49.27    (B) a copy of the filed statement to the limited partnership;49.28    (2) for a statement of withdrawal, send:49.29    (A) a copy of the filed statement to the person on whose behalf the record was 49.30filed; and49.31    (B) if the statement refers to an existing limited partnership, a copy of the filed 49.32statement to the limited partnership; and49.33    (3) for all other records, send a copy of the filed record to the person on whose 49.34behalf the record was filed.50.1    (b) Upon request and payment of a fee, the secretary of state shall send to the 50.2requester a certified copy of the requested record.50.3    (c) Except as otherwise provided in sections 
         321.0116 and 
         321.0207, a record 50.4delivered to the secretary of state for filing under this chapter may specify an effective 50.5time and a delayed effective date. Except as otherwise provided in this chapter, a record 50.6filed by the secretary of state is effective: 50.7    (1) if the record does not specify an effective time and does not specify a delayed 50.8effective date, on the date and at the time the record is filed as evidenced by the secretary 50.9of state's endorsement of the date and time on the record;50.10    (2) if the record specifies an effective time but not a delayed effective date, on the 50.11date the record is filed at the time specified in the record;50.12    (3) if the record specifies a delayed effective date but not an effective time, at 12:01 50.13a.m. on the earlier of:50.14    (A) the specified date; or50.15    (B) the 30th day after the record is filed; or50.16    (4) if the record specifies an effective time and a delayed effective date, at the 50.17specified time on the earlier of:50.18    (A) the specified date; or50.19    (B) the 30th day after the record is filed.50.20    (d) The appropriate fees for filings under this chapter are:50.21    (1) for filing a certificate of limited partnership, $100;50.22    (2) for filing an amended certificate of limited partnership, $50;50.23    (3) for filing any other record, other than the annual report required by section 50.24321.0210, for which no fee must be charged, required or permitted to be delivered for 50.25filing, $35;50.26    (4) for filing a certificate requesting authority to transact business in Minnesota as a 50.27foreign limited partnership, $85;50.28    (5) for filing an application of reinstatement, $25; and50.29    (6) for filing a name reservation for a foreign limited partnership name, $35; and50.30    (7) for filing any other record, other than the annual report required by section 50.31321.0210, for which no fee must be charged, required or permitted to be delivered for 50.32filing on a foreign limited partnership authorized to transact business in Minnesota, $50.50.33EFFECTIVE DATE.This section is effective July 1, 2007.51.1    Sec. 60. Minnesota Statutes 2006, section 321.0210, is amended to read:51.2321.0210 ANNUAL REPORT FOR SECRETARY OF STATE.51.3    (a) Subject to subsection (b):51.4    (1) in each calendar year following the calendar year in which a limited partnership 51.5becomes subject to this chapter, the limited partnership must deliver to the secretary of 51.6state for filing an annual registration containing the information required by subsection 51.7(c); and51.8    (2) in each calendar year following the calendar year in which there is first on file 51.9with the secretary of state a certificate of authority under section 
         321.0904 pertaining to a 51.10foreign limited partnership, the foreign limited partnership must deliver to the secretary of 51.11state for filing an annual registration containing the information required by subsection (c).51.12    (b) A limited partnership's obligation under subsection (a) ends if the limited 51.13partnership delivers to the secretary of state for filing a statement of termination under 51.14section 
         321.0203 and the statement becomes effective under section 
         321.0206. A foreign 51.15limited partnership's obligation under subsection (a) ends if the secretary of state issues 51.16and files a certificate of revocation under section 
         321.0906 or if the foreign limited 51.17partnership delivers to the secretary of state for filing a notice of cancellation under 51.18section 321.0907(a) and that notice takes effect under section 
         321.0206. If a foreign 51.19limited partnership's obligations under subsection (a) end and later the secretary of state 51.20files, pursuant to section 
         321.0904, a new certificate of authority pertaining to that foreign 51.21limited partnership, subsection (a)(2), again applies to the foreign limited partnership and, 51.22for the purposes of subsection (a)(2), the calendar year of the new filing is treated as the 51.23calendar year in which a certificate of authority is first on file with the secretary of state.51.24    (c) The annual registration must contain:51.25    (1) the name of the limited partnership or foreign limited partnership;51.26    (2) the address of its designated office and the name and street and mailing address 51.27of its agent for service of process in Minnesota and, if the agent is not an individual, the 51.28name, street and mailing address, and telephone number of an individual who may be 51.29contacted for purposes other than service of process with respect to the limited partnership;51.30    (3) in the case of a limited partnership, the street and mailing address of its principal 51.31office; and51.32    (4) in the case of a foreign limited partnership, the name of the state or other 51.33jurisdiction under whose law the foreign limited partnership is formed and any alternate 51.34name adopted under section 321.0905(a).51.35    (d) The secretary of state shall:52.1    (1) administratively dissolve under section 
         321.0809 a limited partnership that has 52.2failed to file a registration pursuant to subsection (a); and52.3    (2) revoke under section 
         321.0906 the certificate of authority of a foreign limited 52.4partnership that has failed to file a registration pursuant to subsection (a).52.5    Sec. 61. [321.0909] NAME CHANGES FILED IN HOME STATE.52.6    A foreign limited partnership shall notify the secretary of state of any changes to the 52.7partnership name filed with the state of formation by filing a certificate from the state of 52.8formation certifying to the change of name.52.9EFFECTIVE DATE.This section is effective August 1, 2007.52.10    Sec. 62. Minnesota Statutes 2006, section 323A.1003, is amended to read:52.11323A.1003 ANNUAL REGISTRATION.52.12    (a) Each calendar year beginning in the calendar year following the calendar year 52.13in which a partnership files a statement of qualification or in which a foreign partnership 52.14becomes authorized to transact business in this state, the secretary of state must mail by 52.15first class mail an annual registration form to the street address of the partnership's chief 52.16executive office, if located in Minnesota, the office in this state, if the chief executive 52.17office is not located in Minnesota, or address of the registered agent of the partnership 52.18as shown on the records of the secretary of state when the chief executive office is not 52.19located in Minnesota and no other Minnesota office exists. The form must include the 52.20following notice:52.21    "NOTICE: Failure to file this form by December 31 of this year will result in 52.22the revocation of the statement of qualification of this limited liability partnership 52.23without further notice from the secretary of state pursuant to Minnesota Statutes, section 52.24323A.1003, subsection (d)
         ." 52.25    (b) A limited liability partnership, and a foreign limited liability partnership 52.26authorized to transact business in this state, shall file an annual registration in the office 52.27of the secretary of state which contains:52.28    (1) the name of the limited liability partnership and the state or other jurisdiction 52.29under whose laws the foreign limited liability partnership is formed;52.30    (2) the street address, including the zip code, of the partnership's chief executive 52.31office and, if different, the street address, including the zip code, of an office of the 52.32partnership in this state, if any; and53.1    (3) if the partnership does not have an office in this state, the name and street address, 53.2including the zip code, of the partnership's current agent for service of process; and53.3    (4) if the agent for service of process under clause (3) is not an individual, the name, 53.4street address, and telephone number of an individual who may be contacted for purposes 53.5other than service of process with respect to the limited liability partnership.53.6    (c) An annual registration must be filed once each calendar year beginning in the 53.7year following the calendar year in which a partnership files a statement of qualification or 53.8a foreign partnership becomes authorized to transact business in this state.53.9    (d) The secretary of state must revoke the statement of qualification of a partnership 53.10that fails to file an annual registration when due or pay the required filing fee. The 53.11secretary of state must issue a certificate of revocation which must be filed in the office 53.12of the secretary of state. The secretary of state must also make available in an electronic 53.13format the names of the revoked limited liability companies.53.14    (e) A revocation under subsection (d) only affects a partnership's status as a limited 53.15liability partnership and is not an event of dissolution of the partnership.53.16    (f) A partnership whose statement of qualification has been revoked may apply to 53.17the secretary of state for reinstatement within one year after the effective date of the 53.18revocation. A partnership must file an annual registration to apply for reinstatement and 53.19pay a reinstatement fee of $135.53.20    (g) A reinstatement under subsection (f) relates back to and takes effect as of 53.21the effective date of the revocation, and the partnership's status as a limited liability 53.22partnership continues as if the revocation had never occurred.53.23    Sec. 63. Minnesota Statutes 2006, section 336.1-110, is amended to read:53.24336.1-110 UNIFORM COMMERCIAL CODE ACCOUNT.53.25    The Uniform Commercial Code account is established as an account in the state 53.26treasury. Fees that are not expressly set by statute but are charged by the secretary of state 53.27to offset the costs of providing a service under this chapter must be deposited in the state 53.28treasury and credited to the Uniform Commercial Code account.53.29    Fees that are not expressly set by statute but are charged by the secretary of state 53.30to offset the costs of providing information contained in the computerized records 53.31maintained by the secretary of state must be deposited in the state treasury and credited to 53.32the Uniform Commercial Code account.53.33    Money in the Uniform Commercial Code account is continuously appropriated to the 53.34secretary of state to implement and maintain the central filing system under this chapter, 53.35to provide, improve, and expand other online or remote lien and business entity filing, 54.1retrieval, and payment method services provided by the secretary of state, and to provide 54.2electronic access to other computerized records maintained by the secretary of state.54.3    Sec. 64. Minnesota Statutes 2006, section 336.9-516, is amended to read:54.4336.9-516 WHAT CONSTITUTES FILING; EFFECTIVENESS OF FILING.54.5    (a) What constitutes filing. Except as otherwise provided in subsection (b), 54.6communication of a record to a filing office and tender of the filing fee or acceptance of 54.7the record by the filing office constitutes filing. 54.8    (b) Refusal to accept record; filing does not occur. Filing does not occur with 54.9respect to a record that a filing office refuses to accept because: 54.10    (1) the record is not communicated by a method or medium of communication 54.11authorized by the filing office. For purposes of filing office authorization, transmission of 54.12records using the Extensible Markup Language (XML) format is authorized by the filing 54.13office after the later of July 1, 2007, or the determination of the secretary of state that the 54.14central filing system is capable of receiving and processing these records;54.15    (2) an amount equal to or greater than the applicable filing fee is not tendered;54.16    (3) the filing office is unable to index the record because:54.17    (A) in the case of an initial financing statement, the record does not provide a name 54.18for the debtor;54.19    (B) in the case of an amendment or correction statement, the record:54.20    (i) does not identify the initial financing statement as required by section 
         336.9-51254.21or 
         336.9-518, as applicable; or 54.22    (ii) identifies an initial financing statement whose effectiveness has lapsed under 54.23section 
         336.9-515; 54.24    (C) in the case of an initial financing statement that provides the name of a debtor 54.25identified as an individual or an amendment that provides a name of a debtor identified as 54.26an individual which was not previously provided in the financing statement to which the 54.27record relates, the record does not identify the debtor's last name; or54.28    (D) in the case of a record filed or recorded in the filing office described in section 54.29336.9-501(a)(1)
         , the record does not provide a sufficient description of the real property 54.30to which it relates; 54.31    (4) in the case of an initial financing statement or an amendment that adds a secured 54.32party of record, the record does not provide a name and mailing address for the secured 54.33party of record;55.1    (5) in the case of an initial financing statement or an amendment that provides a 55.2name of a debtor which was not previously provided in the financing statement to which 55.3the amendment relates, the record does not:55.4    (A) provide a mailing address for the debtor;55.5    (B) indicate whether the debtor is an individual or an organization; or55.6    (C) if the financing statement indicates that the debtor is an organization, provide:55.7    (i) a type of organization for the debtor;55.8    (ii) a jurisdiction of organization for the debtor; or55.9    (iii) an organizational identification number for the debtor or indicate that the debtor 55.10has none;55.11    (6) in the case of an assignment reflected in an initial financing statement under 55.12section 
         336.9-514(a) or an amendment filed under section 
         336.9-514(b), the record does 55.13not provide a name and mailing address for the assignee; or 55.14    (7) in the case of a continuation statement, the record is not filed within the 55.15six-month period prescribed by section 
         336.9-515(d). 55.16    (c) Rules applicable to subsection (b). For purposes of subsection (b): 55.17    (1) a record does not provide information if the filing office is unable to read or 55.18decipher the information; and55.19    (2) a record that does not indicate that it is an amendment or identify an initial 55.20financing statement to which it relates, as required by section 
         336.9-512, 
         336.9-514, or 55.21336.9-518
         , is an initial financing statement. 55.22    (d) Refusal to accept record; record effective as filed record. A record that is 55.23communicated to the filing office with tender of the filing fee, but which the filing office 55.24refuses to accept for a reason other than one set forth in subsection (b), is effective as a 55.25filed record except as against a purchaser of the collateral which gives value in reasonable 55.26reliance upon the absence of the record from the files. 55.27EFFECTIVE DATE.This section is effective August 1, 2007.55.28    Sec. 65. Minnesota Statutes 2006, section 336.9-525, is amended to read:55.29336.9-525 FEES.55.30    (a)  Initial financing statement or other record: general rule. Except as otherwise 55.31provided in subsection (d), the fee for filing and indexing a record under this part delivered 55.32on paper is $20 and for a record delivered by any electronic means is $15. $5 of the 55.33fee collected for each filing made online must be deposited in the uniform commercial 55.34code account.56.1    (b)  Number of names. The number of names required to be indexed does not 56.2affect the amount of the fee in subsection (a). 56.3    (c)  Response to information request. The fee for responding to a request for 56.4information from the filing office, including for issuing a certificate showing whether there 56.5is on file any financing statement naming a particular debtor, delivered on paper is $20 56.6and for a record delivered by any electronic means is $15. $5 of the fee collected for each 56.7request delivered online must be deposited in the uniform commercial code account.56.8    (d)  Record of mortgage. This section does not require a fee with respect to a record 56.9of a mortgage which is effective as a financing statement filed as a fixture filing or as a 56.10financing statement covering as-extracted collateral or timber to be cut under section 56.11336.9-502(c)
         . However, the recording and satisfaction fees that otherwise would be 56.12applicable to the record of the mortgage apply.56.13    Sec. 66. Minnesota Statutes 2006, section 358.41, is amended to read:56.14358.41 DEFINITIONS.56.15    As used in sections 
         358.41 to 
         358.49: 56.16    (1) "Notarial act" means any act that a notary public of this state is authorized to 56.17perform, and includes taking an acknowledgment, administering an oath or affirmation, 56.18taking a verification upon oath or affirmation, witnessing or attesting a signature, certifying 56.19or attesting a copy, and noting a protest of a negotiable instrument. A notary public may 56.20perform a notarial act by electronic means.56.21    (2) "Acknowledgment" means a declaration by a person that the person has executed 56.22an instrument or electronic record for the purposes stated therein and, if the instrument 56.23or electronic record is executed in a representative capacity, that the person signed 56.24the instrument with proper authority and executed it as the act of the person or entity 56.25represented and identified therein.56.26    (3) "Verification upon oath or affirmation" means a declaration that a statement is 56.27true made by a person upon oath or affirmation.56.28    (4) "In a representative capacity" means:56.29    (i) for and on behalf of a corporation, partnership, limited liability company, trust, or 56.30other entity, as an authorized officer, agent, partner, trustee, or other representative;56.31    (ii) as a public officer, personal representative, guardian, or other representative, 56.32in the capacity recited in the instrument;56.33    (iii) as an attorney in fact for a principal; or56.34    (iv) in any other capacity as an authorized representative of another.57.1    (5) "Notarial officer" means a notary public or other officer authorized to perform 57.2notarial acts.57.3    (6) "Electronic signature" means an electronic sound, symbol, or process attached 57.4to or logically associated with a record and executed or adopted by a person with the 57.5intent to sign the record.57.6    (7) "Electronic record" means a record created, generated, sent, communicated, 57.7received, or stored by electronic means.57.8EFFECTIVE DATE.This section is effective August 1, 2007.57.9    Sec. 67. Minnesota Statutes 2006, section 358.42, is amended to read:57.10358.42 NOTARIAL ACTS.57.11    (a) In taking an acknowledgment, the notarial officer must determine, either from 57.12personal knowledge or from satisfactory evidence, that the person appearing before the 57.13officer and making the acknowledgment is the person whose true signature is on the 57.14instrument or electronic record.57.15    (b) In taking a verification upon oath or affirmation, the notarial officer must 57.16determine, either from personal knowledge or from satisfactory evidence, that the person 57.17appearing before the officer and making the verification is the person whose true signature 57.18is made in the presence of the officer on the statement verified.57.19    (c) In witnessing or attesting a signature the notarial officer must determine, either 57.20from personal knowledge or from satisfactory evidence, that the signature is that of the 57.21person appearing before the officer and named therein. When witnessing or attesting a 57.22signature, the officer must be present when the signature is made.57.23    (d) In certifying or attesting a copy of a document, electronic record, or other item, 57.24the notarial officer must determine that the proffered copy is a full, true, and accurate 57.25transcription or reproduction of that which was copied.57.26    (e) In making or noting a protest of a negotiable instrument or electronic record the 57.27notarial officer must determine the matters set forth in section 
         336.3-505. 57.28    (f) A notarial officer has satisfactory evidence that a person is the person whose true 57.29signature is on a document or electronic record if that person (i) is personally known to 57.30the notarial officer, (ii) is identified upon the oath or affirmation of a credible witness 57.31personally known to the notarial officer, or (iii) is identified on the basis of identification 57.32documents.57.33EFFECTIVE DATE.This section is effective August 1, 2007.58.1    Sec. 68. Minnesota Statutes 2006, section 358.50, is amended to read:58.2358.50 EFFECT OF ACKNOWLEDGMENT.58.3    An acknowledgment made in a representative capacity for and on behalf of a 58.4corporation, partnership, limited liability company, trust, or other entity and certified 58.5substantially in the form prescribed in this chapter is prima facie evidence that the 58.6instrument or electronic record was executed and delivered with proper authority.58.7EFFECTIVE DATE.This section is effective August 1, 2007.58.8    Sec. 69. Minnesota Statutes 2006, section 359.085, subdivision 2, is amended to read:58.9    Subd. 2. Verifications. In taking a verification upon oath or affirmation, the notarial 58.10officer must determine, either from personal knowledge or from satisfactory evidence, that 58.11the person appearing before the officer and making the verification is the person whose 58.12true signature is made in the presence of the officer on the statement verified.58.13EFFECTIVE DATE.This section is effective August 1, 2007.58.14    Sec. 70. Minnesota Statutes 2006, section 359.085, subdivision 3, is amended to read:58.15    Subd. 3. Witnessing or attesting signatures. In witnessing or attesting a signature, 58.16the notarial officer must determine, either from personal knowledge or from satisfactory 58.17evidence, that the signature is that of the person appearing before the officer and named in 58.18the document or electronic record. When witnessing or attesting a signature, the officer 58.19must be present when the signature is made.58.20EFFECTIVE DATE.This section is effective August 1, 2007.58.21    Sec. 71. Minnesota Statutes 2006, section 477A.014, subdivision 4, is amended to read:58.22    Subd. 4. Costs. The director of the Office of Strategic and Long-Range Planning 58.23shall annually bill the commissioner of revenue for one-half of the costs incurred by the 58.24state demographer in the preparation of materials required by section 
         4A.02. The state 58.25auditor shall bill the commissioner of revenue for the costs of best practices reviews 58.26and the services provided by the Government Information Division and the parts of the 58.27constitutional office that are related to the government information function, and for 58.28the services provided by the Tax Increment Financing Investment and Finance Division 58.29required by section 469.3201, not to exceed $217,000 $614,000 each fiscal year. The 58.30commissioner of administration shall bill the commissioner of revenue for the costs of 58.31the local government records program and the intergovernmental information systems 59.1activity, not to exceed $205,800 each fiscal year. The commissioner of employee relations 59.2shall bill the commissioner of revenue for the costs of administering the local government 59.3pay equity function, not to exceed $55,000 each fiscal year. 59.4    Sec. 72. Minnesota Statutes 2006, section 491A.02, subdivision 4, is amended to read:59.5    Subd. 4. Representation. (a) A corporation, partnership, limited liability company, 59.6sole proprietorship, or association may be represented in conciliation court by an officer, 59.7manager, or partner or an agent in the case of a condominium, cooperative, or townhouse 59.8association, or may appoint a natural person who is an employee or commercial property 59.9manager to appear on its behalf or settle a claim in conciliation court. The state or a 59.10political subdivision of the state may be represented in conciliation court by an employee 59.11of the pertinent governmental unit without a written authorization. The state also may be 59.12represented in conciliation court by an employee of the Division of Risk Management of 59.13the Department of Administration without a written authorization. Representation under 59.14this subdivision does not constitute the practice of law for purposes of section 
         481.02, 59.15subdivision 8
         . In the case of an officer, employee, commercial property manager, or 59.16agent of a condominium, cooperative, or townhouse association, an authorized power 59.17of attorney, corporate authorization resolution, corporate bylaw, or other evidence of 59.18authority acceptable to the court must be filed with the claim or presented at the hearing. 59.19This subdivision also applies to appearances in district court by a corporation or limited 59.20liability company with five or fewer shareholders or members and to any condominium, 59.21cooperative, or townhouse association, if the action was removed from conciliation court. 59.22    (b) "Commercial property manager" means a corporation, partnership, or limited 59.23liability company or its employees who are hired by the owner of commercial real 59.24estate to perform a broad range of administrative duties at the property including tenant 59.25relations matters, leasing, repairs, maintenance, the negotiation and resolution of tenant 59.26disputes, and related matters. In order to appear in conciliation court, a property manager's 59.27employees must possess a real estate license under section 
         82.20 and be authorized by the 59.28owner of the property to settle all disputes with tenants and others within the jurisdictional 59.29limits of conciliation court. 59.30    (c) A commercial property manager who is appointed to settle a claim in conciliation 59.31court may not charge or collect a separate fee for services rendered under paragraph (a).59.32    Sec. 73. Minnesota Statutes 2006, section 507.24, subdivision 2, is amended to read:59.33    Subd. 2. Original signatures required. (a) Unless otherwise provided by law, an 59.34instrument affecting real estate that is to be recorded as provided in this section or other 60.1applicable law must contain the original signatures of the parties who execute it and of the 60.2notary public or other officer taking an acknowledgment. However, a financing statement 60.3that is recorded as a filing pursuant to section 
         336.9-502(b) need not contain: (1) the 60.4signatures of the debtor or the secured party; or (2) an acknowledgment.60.5    (b)(1) Any electronic instruments, including signatures and seals, affecting real 60.6estate may only be recorded as part of a pilot project for the electronic filing of real 60.7estate documents implemented by the task force created in Laws 2000, chapter 391, or 60.8by the Electronic Real Estate Recording Task Force created under section 
         507.094. The 60.9Electronic Real Estate Recording Task Force created under section 507.094 may amend 60.10standards set by the task force created in Laws 2000, chapter 391, and may set new or 60.11additional standards and establish pilot projects to the full extent permitted in section 60.12507.094, subdivision 2, paragraph (b). Documents recorded in conformity with those 60.13standards and in those pilot projects are deemed to meet the requirements of this section. 60.14    (2)(i) A county that participated in the pilot project for the electronic filing of real 60.15estate documents under the task force created in Laws 2000, chapter 391, may continue to 60.16record or file documents electronically, if:60.17    (1)(A) the county complies with standards adopted by the task force; and60.18    (2)(B) the county uses software that was validated by the task force.60.19    (ii) A county that did not participate in the pilot project may record or file a real 60.20estate document electronically, if:60.21    (i)(A) the document to be recorded or filed is of a type included in the pilot project 60.22for the electronic filing of real estate documents under the task force created in Laws 60.232000, chapter 391;60.24    (ii)(B) the county complies with the standards adopted by the task force;60.25    (iii)(C) the county uses software that was validated by the task force; and60.26    (iv)(D) the task force created under section 
         507.094, votes to accept a written 60.27certification of compliance with paragraph (b), clause (2), of this section by the county 60.28board and county recorder of the county to implement electronic filing under this section.60.29    (c) Notices filed pursuant to section 
         168A.141, subdivisions 1 and 3, need not 60.30contain an acknowledgment.60.31    Sec. 74. Minnesota Statutes 2006, section 517.08, subdivision 1b, is amended to read:60.32    Subd. 1b. Term of license; fee; premarital education. (a) The local registrar 60.33shall examine upon oath the party applying for a license relative to the legality of the 60.34contemplated marriage. If at the expiration of a five-day period, on being satisfied that 60.35there is no legal impediment to it, including the restriction contained in section 
         259.13, the 61.1local registrar shall issue the license, containing the full names of the parties before and 61.2after marriage, and county and state of residence, with the county seal attached, and make a 61.3record of the date of issuance. The license shall be valid for a period of six months. In case 61.4of emergency or extraordinary circumstances, a judge of the district court of the county in 61.5which the application is made, may authorize the license to be issued at any time before 61.6the expiration of the five days. Except as provided in paragraph (b), the local registrar shall 61.7collect from the applicant a fee of $100$110 for administering the oath, issuing, recording, 61.8and filing all papers required, and preparing and transmitting to the state registrar of vital 61.9statistics the reports of marriage required by this section. If the license should not be used 61.10within the period of six months due to illness or other extenuating circumstances, it may 61.11be surrendered to the local registrar for cancellation, and in that case a new license shall 61.12issue upon request of the parties of the original license without fee. A local registrar who 61.13knowingly issues or signs a marriage license in any manner other than as provided in this 61.14section shall pay to the parties aggrieved an amount not to exceed $1,000.61.15    (b) The marriage license fee for parties who have completed at least 12 hours of 61.16premarital education is $30 $40. In order to qualify for the reduced license fee, the 61.17parties must submit at the time of applying for the marriage license a signed and dated 61.18statement from the person who provided the premarital education confirming that it was 61.19received. The premarital education must be provided by a licensed or ordained minister 61.20or the minister's designee, a person authorized to solemnize marriages under section 61.21517.18
         , or a person authorized to practice marriage and family therapy under section 61.22148B.33
         . The education must include the use of a premarital inventory and the teaching of 61.23communication and conflict management skills.61.24    (c) The statement from the person who provided the premarital education under 61.25paragraph (b) must be in the following form:61.26    "I, (name of educator), confirm that (names of both parties) received at least 12 61.27hours of premarital education that included the use of a premarital inventory and the 61.28teaching of communication and conflict management skills. I am a licensed or ordained 61.29minister, a person authorized to solemnize marriages under Minnesota Statutes, section 61.30517.18
         , or a person licensed to practice marriage and family therapy under Minnesota 61.31Statutes, section 148B.33."61.32    The names of the parties in the educator's statement must be identical to the legal 61.33names of the parties as they appear in the marriage license application. Notwithstanding 61.34section 
         138.17, the educator's statement must be retained for seven years, after which 61.35time it may be destroyed.62.1    (d) If section 
         259.13 applies to the request for a marriage license, the local registrar 62.2shall grant the marriage license without the requested name change. Alternatively, the local 62.3registrar may delay the granting of the marriage license until the party with the conviction:62.4    (1) certifies under oath that 30 days have passed since service of the notice for a 62.5name change upon the prosecuting authority and, if applicable, the attorney general and no 62.6objection has been filed under section 
         259.13; or62.7    (2) provides a certified copy of the court order granting it. The parties seeking the 62.8marriage license shall have the right to choose to have the license granted without the 62.9name change or to delay its granting pending further action on the name change request.62.10    Sec. 75. Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:62.11    Subd. 1c. Disposition of license fee. (a) Of the marriage license fee collected 62.12pursuant to subdivision 1b, paragraph (a), $15$25 must be retained by the county. The 62.13local registrar must pay $85 to the commissioner of finance to be deposited as follows:62.14    (1) $50 in the general fund;62.15    (2) $3 in the special revenue fund to be appropriated to the commissioner of 62.16education for parenting time centers under section 
         119A.37;62.17    (3) $2 in the special revenue fund to be appropriated to the commissioner of health 62.18for developing and implementing the MN ENABL program under section 
         145.9255;62.19    (4) $25 in the special revenue fund is appropriated to the commissioner of 62.20employment and economic development for the displaced homemaker program under 62.21section 
         116L.96; and62.22    (5) $5 in the special revenue fund is appropriated to the commissioner of human 62.23services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under 62.24section 
         256.742.62.25    (b) Of the $30$40 fee under subdivision 1b, paragraph (b), $15$25 must be retained 62.26by the county. The local registrar must pay $15 to the commissioner of finance to be 62.27deposited as follows:62.28    (1) $5 as provided in paragraph (a), clauses (2) and (3); and62.29    (2) $10 in the special revenue fund is appropriated to the commissioner of 62.30employment and economic development for the displaced homemaker program under 62.31section 
         116L.96.62.32    (c) The increase in the marriage license fee under paragraph (a) provided for in Laws 62.332004, chapter 273, and disbursement of the increase in that fee to the special fund for the 62.34Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a), 63.1clause (5), is contingent upon the receipt of federal funding under United States Code, title 63.242, section 1315, for purposes of the initiative.63.3    Sec. 76. Laws 2005, chapter 156, article 2, section 45, is amended to read:63.4    Sec. 45. SALE OF STATE LAND.63.5    Subdivision 1. State land sales. The commissioner of administration shall 63.6coordinate with the head of each department or agency having control of state-owned land 63.7to identify and sell at least $6,440,000 of state-owned land. Sales should be completed 63.8according to law and as provided in this section as soon as practicable but no later than 63.9June 30, 2007 2009. Notwithstanding Minnesota Statutes, sections 
         16B.281 and 
         16B.282, 63.1094.09
          and 
         94.10, or any other law to the contrary, the commissioner may offer land 63.11for public sale by only providing notice of lands or an offer of sale of lands to state 63.12departments or agencies, the University of Minnesota, cities, counties, towns, school 63.13districts, or other public entities.63.14    Subd. 2. Anticipated savings. Notwithstanding Minnesota Statutes, section 63.1594.16, subdivision 3
         , or other law to the contrary, the amount of the proceeds from the 63.16sale of land under this section that exceeds the actual expenses of selling the land must 63.17be deposited in the general fund, except as otherwise provided by the commissioner of 63.18finance. Notwithstanding Minnesota Statutes, section 
         94.11 or 
         16B.283, the commissioner 63.19of finance may establish the timing of payments for land purchased under this section. If 63.20the total of all money deposited into the general fund from the proceeds of the sale of land 63.21under this section is anticipated to be less than $6,440,000, the governor must allocate the 63.22amount of the difference as reductions to general fund operating expenditures for other 63.23executive agencies for the biennium ending June 30, 2007 2009.63.24    Subd. 3. Sale of state lands revolving loan fund. $290,000 is appropriated from 63.25the general fund in fiscal year 2006 to the commissioner of administration for purposes 63.26of paying the actual expenses of selling state-owned lands to achieve the anticipated 63.27savings required in this section. From the gross proceeds of land sales under this section, 63.28the commissioner of administration must cancel the amount of the appropriation in this 63.29subdivision to the general fund by June 30, 20072009.63.30    Sec. 77. Laws 2006, chapter 253, section 22, subdivision 1, is amended to read:63.31    Subdivision 1.  Genetic information; work group. (a) The commissioner must 63.32create a work group to develop principles for public policy on the use of genetic 63.33information. The work group must include representatives of state government, including 63.34the judicial branch, local government, prosecutors, public defenders, the American Civil 64.1Liberties Union - Minnesota, the Citizens Council on Health Care, the University of 64.2Minnesota Center on Bioethics, the Minnesota Medical Association, the Mayo Clinic 64.3and Foundation, the March of Dimes, and representatives of employers, researchers, 64.4epidemiologists, laboratories, and insurance companies.64.5    (b) The commissioner of administration and the work group must conduct reviews 64.6of the topics in paragraphs (c) to (f), in light of the issues raised in the report on treatment 64.7of genetic information under state law required by Laws 2005, chapter 163, section 87. 64.8The commissioner must report the results, including any recommendations for legislative 64.9changes, to the chairs of the house Civil Law Committee and the senate Judiciary 64.10Committee and the ranking minority members of those committees by January 15, 200864.112009.64.12    (c) The commissioner and the work group must determine whether changes are 64.13needed in Minnesota Statutes, section 
         144.69, dealing with collection of information 64.14from cancer patients and their relatives.64.15    (d) The commissioner and the work group must make recommendations whether 64.16all relatives affected by a formal three-generation pedigree created by the Department of 64.17Health should be able to access the entire data set, rather than only allowing individuals 64.18access to the data of which they are the subject.64.19    (e) The commissioner and the work group must identify, and may make 64.20recommendations among, options for resolving questions of secondary uses of genetic 64.21information.64.22    (f) The commissioner and the work group must make recommendations whether 64.23legislative changes are needed regarding access to DNA test results and the specimens 64.24used to create the test results held by the Bureau of Criminal Apprehension as part of 64.25a criminal investigation.64.26    Sec. 78. Laws 2006, chapter 282, article 14, section 5, is amended to read:

64.2764.28Sec. 5. OFFICE OF ADMINISTRATIVE HEARINGS320,000

64.29From the workers' compensation fund for 64.30costs associated with the relocation of 64.31offices to St. Paul. The commissioner 64.32of administration shall take all steps as 64.33necessary to complete the renovation of 64.34the Stassen Building for these purposes by 64.35January 1, 2008. Minnesota Statutes, section 65.116B.33, subdivision 3
         , does not apply if 65.2the estimated cost of construction exceeds 65.3$2,000,000. This is a onetime appropriation.65.4This appropriation is available until spent.65.5Beginning in fiscal year 2009 and for all 65.6fiscal years thereafter, the appropriation base 65.7for the workers' compensation fund for the 65.8Office of Administrative Hearings is reduced 65.9by $297,000 to reflect savings in rent costs 65.10due to the relocation of offices to St. Paul.65.11EFFECTIVE DATE.This section is effective the day following final enactment.65.12    Sec. 79. FORD BUILDING.65.13    The Ford Building at 117 University Avenue in St. Paul may not be demolished 65.14during the biennium ending June 30, 2009.65.15    Sec. 80. ELECTRONIC DOCUMENTS STUDY AND REPORT.65.16    Subdivision 1.Study.The chief information officer of the state, in consultation with 65.17the state archivist and legislative reference librarian, shall study how electronic documents 65.18and the mechanisms and processes for accessing and reading electronic data can be created, 65.19maintained, exchanged, and preserved by the state in a manner that encourages appropriate 65.20government control, access, choice, and interoperability. The study must consider, but 65.21not be limited to, the policies of other states and nations, management guidelines for state 65.22archives as they pertain to electronic documents, public access to information, expected 65.23storage life of electronic documents, costs of implementation, and potential savings. The 65.24chief information officer shall solicit comments from stakeholders, including, but not 65.25limited to, the legislative auditor, attorney general, librarians, state services for the blind, 65.26representatives of the Minnesota Historical Society, other historians, and the media. The 65.27chief information officer shall also solicit comments from members of the public.65.28    Subd. 2.Report and recommendations.The chief information officer shall 65.29report the officer's findings and recommendations to the chairs of the senate State and 65.30Local Government Operations and Oversight Committee; the house of representatives 65.31Government Operations, Reform, Technology and Elections Committee; and the senate 65.32and house of representatives State Government Finance Divisions by January 15, 2008.66.1    Sec. 81. STATE EMPLOYEES ELECTRONIC HEALTH RECORDS PILOT 66.2PROJECT.66.3    Subdivision 1.Project established.The Minnesota State Colleges and Universities 66.4Board of Trustees (MnSCU), in collaboration with the commissioner of employee relations 66.5shall establish an enterprise-wide pilot project to provide consumer-owned electronic 66.6personal health records to MnSCU employees and all participants in the state employee 66.7group insurance program. If the Department of Employee Relations is abolished, then the 66.8Minnesota State Colleges and Universities Board of Trustees shall work in collaboration 66.9with the commissioner of the department responsible for administration of the state 66.10employee group insurance program. 66.11    Subd. 2.Project goals.The goal of the project is to provide consumer-owned 66.12electronic personal health records that are portable among health care providers, health 66.13plan companies, and employers in order to control costs, improve quality, and enhance 66.14safety, and to demonstrate the feasibility of a statewide health information exchange. 66.15The pilot project shall coordinate to the extent possible with other health information 66.16consumer engagement initiatives in Minnesota designed to support the goal of statewide 66.17health information exchange. The electronic personal health records may provide, but 66.18are not limited to, the following: 66.19    (1) access to electronic medical records;66.20    (2) prescription and appointment information;66.21    (3) information regarding health education, public health, and health cost 66.22management; and66.23    (4) privacy, security, and compliance with HIPAA; Minnesota Statutes, chapter 13; 66.24Minnesota Statutes, section 144.335; and other state law related to data privacy.66.25    Sec. 82. SUSTAINABLE GROWTH WORKING GROUP.66.26    Subdivision 1.Creation.The sustainable growth working group consists of the 66.27following members:66.28    (1) two senators, including one member of the minority caucus, appointed by the 66.29Subcommittee on Committees of the Committee on Rules and Administration;66.30    (2) two members of the house of representatives, one appointed by the speaker 66.31and one appointed by the minority leader;66.32    (3) commissioners of the following agencies, or their designees: Department of 66.33Natural Resources, Department of Transportation, Department of Employment and 66.34Economic Development, Minnesota Housing Finance Agency, and the Minnesota 67.1Pollution Control Agency; and the chair of the Metropolitan Council or the chair's 67.2designee;67.3    (4) up to 12 public members who have an interest in promoting sustainable 67.4communities in Minnesota, including up to six public members appointed by the speaker 67.5of the house of representatives and up to six public members appointed by the majority 67.6leader of the senate. The appointing authorities must use their best efforts to include at 67.7least one representative from each of the following sectors: business, environmental, 67.8energy, affordable housing, transportation, local government, planning, and philanthropic.67.9    The membership of the working group must include balanced representation from 67.10rural, urban, and suburban areas of the state. The commissioners of administration, 67.11agriculture, and commerce must consult with and advise the working group in the 67.12development of its recommendations.67.13    Subd. 2.Duties.The working group must identify strategies, recommendations, and 67.14a process for implementing state-level coordination of state and local policies, programs, 67.15and regulations in the areas of housing, transportation, natural resource preservation, 67.16capital development, economic development, sustainability, and preservation of the 67.17environment. The working group must identify sustainable development principles that 67.18will guide decision making in Minnesota. The working group must gather information 67.19and develop strategies relative to the strategic use of state resources, to be consistent with 67.20statewide goals of sustainable development. The working group must report proposed 67.21strategies, recommendations, and a process for implementation to the legislature and the 67.22governor by February 1, 2008. In its report to the legislature and the governor, the working 67.23group must identify its source of funding.67.24    Subd. 3.Administrative provisions.(a) The commissioner of administration 67.25must convene the initial meeting. Upon request of the working group, the commissioner 67.26must provide meeting space and administrative services for the group. The Office of 67.27Geographic and Demographic Analysis must provide staff support for the working group. 67.28The members of the working group must elect a chair.67.29    (b) Members of the working group serve without compensation but may be 67.30reimbursed for expenses under Minnesota Statutes, section 15.059.67.31    (c) The working group expires June 30, 2008.67.32    (d) The working group may accept gifts and grants, which are accepted on behalf 67.33of the state and constitute donations to the state. Funds received are appropriated to the 67.34commissioner of administration for purposes of the working group.67.35    Sec. 83. TRAINING SERVICES.68.1    During the biennium ending June 30, 2009, state executive branch agencies must 68.2consider using services provided by government training services before contracting with 68.3other outside vendors for similar services.68.4    Sec. 84. DEPARTMENT OF EMPLOYEE RELATIONS ABOLISHED; DUTIES 68.5TRANSFERRED.68.6    (a) The Department of Employee Relations and the position of the commissioner 68.7of employee relations are abolished as of June 1, 2008. Duties of the Department of 68.8Employee Relations and the commissioner of employee relations are transferred on or 68.9before June 1, 2008, to the commissioner of finance, except as follows:68.10    (1) duties relating to administration of the state employees workers' compensation 68.11program are transferred on or before June 1, 2008, to the commissioner of administration; 68.12and68.13    (2) duties relating to health care purchasing improvement under Minnesota Statutes, 68.14section 43A.312, are transferred on or before June 1, 2008, to the commissioner of health.68.15    (b) The commissioner of employee relations, in consultation with the commissioner 68.16of finance, may specify one or more dates before June 1, 2008, on which any or all of the 68.17transfers provided in paragraph (a) will occur.68.18    (c) The governor may, in consultation with the commissioner of employee relations, 68.19the commissioner of finance, the commissioner of administration, and the director of the 68.20Office of Enterprise Technology, transfer other duties of the Department of Employee 68.21Relations to other state agencies in order to most effectively and efficiently accomplish the 68.22reorganization required by this act.68.23    (d) Transfer of duties under this section is subject to Minnesota Statutes, section 68.2415.039.68.25    (e) In addition to any other protection, no employee in the classified service shall 68.26suffer job loss, have a salary reduced, or have employment benefits reduced as a result of 68.27a reorganization mandated or recommended under authority of this section. No action 68.28taken after June 1, 2009, shall be considered a result of reorganization for the purposes 68.29of this section.68.30EFFECTIVE DATE.This section is effective the day following final enactment. 68.31    Sec. 85. STATE BUDGET TRENDS STUDY COMMISSION.68.32    (a) The State Budget Trends Study Commission is established for the purpose 68.33of completing a study of the implications of state demographic trends for future state 68.34budget conditions, including both expected revenue collections and spending for state 69.1government services and local services supported by state revenues. The commission 69.2shall consist of 15 public members, including five members appointed by the governor; 69.3five members appointed by the senate Subcommittee on Committees of the Committee 69.4on Rules and Administration; four members appointed by the speaker of the house of 69.5representatives; and one member appointed by the minority leader of the house of 69.6representatives. The respective appointing authorities must complete their appointments 69.7under this section within 30 days of the effective date of this section. The commissioner of 69.8finance must convene the commission within 30 days of the completion of appointments 69.9under this section. The members shall select their chair at the first meeting. When making 69.10appointments under this section, the appointing authorities must consider the education 69.11and expertise of appointees in fields such as public finance, demography, and public 69.12administration.69.13    (b) Per diem and expense payments to members, removal of members, and vacancies 69.14are governed by Minnesota Statutes, section 15.059. 69.15    (c) The commissioners of finance and revenue must provide data, analysis, and staff 69.16support required by the commission to complete the study, including, but not limited to, 69.17the effect of expected demographic changes over the next 25 years on state tax bases and 69.18on existing state programs and appropriations. In preparing the study, the commission 69.19shall consult with and use the services of the state demographer to estimate the changing 69.20profile of the Minnesota population by age and other factors relevant to the study. The 69.21commission may also contract with appropriate consultants and experts as needed to 69.22complete the study.69.23    (d) In completing the study, the commission must consider:69.24    (1) the effect of expected demographic changes over the next 25 years on the tax 69.25base and revenue collections for state income and sales tax, or other state taxes;69.26    (2) estimates of tax revenue collections for the years 2012, 2017, 2022, 2027, and 69.272032, taking into account the sensitivity of the results for changes in estimated migration 69.28rates, labor force participation by older individuals, and other shares of capital versus labor;69.29    (3) the effect of demographic trends on entitlement programs and other large state 69.30appropriations relative to current budget commitments;69.31    (4) relative trends in spending for state programs including trends identified in the 69.32fast growing expenditures report completed under Minnesota Statutes, section 16A.103, 69.33subdivision 4; and69.34    (5) the structure of the state budget with regard to budget stability and flexibility.69.35    (e) The commission may make recommendations for state tax or budget policy 69.36changes, including recommendations for changes in tax base, mix of tax types, state 70.1and local finance relationships, entitlements, or budget structure. The commission shall 70.2present preliminary results to the chairs of the legislative committees with jurisdiction 70.3over finance and taxes by February 1, 2008, and a final written report to the same chairs by 70.4January 15, 2009, in compliance with Minnesota Statutes, sections 3.195 and 3.197. 70.5    (f) This section expires on June 30, 2009.70.6    Sec. 86. REVISOR'S INSTRUCTION.70.7    In the next and subsequent editions of Minnesota Statutes and Minnesota Rules, the 70.8revisor of statutes must replace references to the Department of Employee Relations and 70.9commissioner of employee relations with references to the appropriate department and 70.10commissioner specified in section 86. The revisor of statutes, in consultation with affected 70.11commissioners of state agencies, must prepare a bill for introduction in the 2008 legislative 70.12session making other statutory changes needed to implement or conform with section 86.70.13EFFECTIVE DATE.This section is effective the day following final enactment.70.14    Sec. 87. REPEALER.70.15Minnesota Statutes 2006, sections 16A.102, subdivisions 1, 2, and 3; 16B.055, 70.16subdivisions 2 and 3; 16C.055, subdivision 1; 16C.08, subdivision 4a; 69.051, subdivision 70.171c; and 359.085, subdivision 8, are repealed.70.18ARTICLE 370.19BEST VALUE CONTRACTS70.20    Section 1. Minnesota Statutes 2006, section 16C.02, is amended by adding a 70.21subdivision to read:70.22    Subd. 4a.Best value; construction.For purposes of construction, building, 70.23alteration, improvement, or repair services, "best value" describes the result determined by 70.24a procurement method that considers price and performance criteria, which may include, 70.25but are not limited to:70.26    (1) the quality of the vendor's or contractor's performance on previous projects;70.27    (2) the timeliness of the vendor's or contractor's performance on previous projects;70.28    (3) the level of customer satisfaction with the vendor's or contractor's performance 70.29on previous projects; 70.30    (4) the vendor's or contractor's record of performing previous projects on budget and 70.31ability to minimize cost overruns;70.32    (5) the vendor's or contractor's ability to minimize change orders;71.1    (6) the vendor's or contractor's ability to prepare appropriate project plans;71.2    (7) the vendor's or contractor's technical capacities;71.3    (8) the individual qualifications of the contractor's key personnel; or71.4    (9) the vendor's or contractor's ability to assess and minimize risks.71.5    "Performance on previous projects" does not include the exercise or assertion of a 71.6person's legal rights. This definition does not apply to sections 16C.32, 16C.33, 16C.34, 71.7and 16C.35.71.8    Sec. 2. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision 71.9to read:71.10    Subd. 20.Vendor."Vendor" means a business, including a construction contractor 71.11or a natural person, and includes both if the natural person is engaged in a business.71.12    Sec. 3. Minnesota Statutes 2006, section 16C.03, subdivision 3, is amended to read:71.13    Subd. 3. Acquisition authority. The commissioner shall acquire all goods, services, 71.14and utilities needed by agencies. The commissioner shall acquire goods, services, and 71.15utilities by requests for bids, requests for proposals, reverse auctions as provided in 71.16section 
         16C.10, subdivision 7, or other methods provided by law, unless a section of law 71.17requires a particular method of acquisition to be used. The commissioner shall make all 71.18decisions regarding acquisition activities. The determination of the acquisition method 71.19and all decisions involved in the acquisition process, unless otherwise provided for by 71.20law, shall be based on best value which includes an evaluation of price and may include 71.21other considerations including, but not limited to, environmental considerations, quality, 71.22and vendor performance. A best value determination must be based on the evaluation 71.23criteria detailed in the solicitation document. If criteria other than price are used, the 71.24solicitation document must state the relative importance of price and other factors. Unless 71.25it is determined by the commissioner that an alternative solicitation method provided by 71.26law should be used to determine best value, a request for bid must be used to solicit 71.27formal responses for all building and construction contracts. Any or all responses may 71.28be rejected. When using the request for bid process, the bid must be awarded to the 71.29lowest responsive and responsible bidder, taking into consideration conformity with 71.30the specifications, terms of delivery, the purpose for which the contract or purchase is 71.31intended, the status and capability of the vendor, and other considerations imposed in the 71.32request for bids. The commissioner may decide which is the lowest responsible bidder 71.33for all purchases and may use the principles of life-cycle costing, where appropriate, in 72.1determining the lowest overall bid. The duties set forth in this subdivision are subject to 72.2delegation pursuant to this section. 72.3    Sec. 4. Minnesota Statutes 2006, section 16C.03, is amended by adding a subdivision 72.4to read:72.5    Subd. 3a.Acquisition authority; construction contracts.For all building and 72.6construction contracts, the commissioner shall award contracts pursuant to section 72.716C.28, and "best value" shall be defined and applied as set forth in sections 16C.02, 72.8subdivision 4a, and 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c). 72.9The duties set forth in this subdivision are subject to delegation pursuant to this section. 72.10The commissioner shall establish procedures for developing and awarding best value 72.11requests for proposals for construction projects. The criteria to be used to evaluate the 72.12proposals must be included in the solicitation document and must be evaluated in an open 72.13and competitive manner.72.14    Sec. 5. Minnesota Statutes 2006, section 16C.03, is amended by adding a subdivision 72.15to read:72.16    Subd. 19.Training.Any personnel administering procurement procedures for a 72.17user of best value procurement or any consultant retained by a local unit of government to 72.18prepare or evaluate solicitation documents must be trained, either by the department or 72.19through other training, in the request for proposals process for best value contracting for 72.20construction projects. The commissioner may establish a training program for state and 72.21local officials, and vendors and contractors, on best value procurement for construction 72.22projects, including those governed by section 16C.28. If the commissioner establishes 72.23such a training program, the state may charge a fee for providing training.72.24    Sec. 6. Minnesota Statutes 2006, section 16C.26, is amended to read:72.2516C.26 COMPETITIVE BIDS OR PROPOSALS.72.26    Subdivision 1. Application. Except as otherwise provided by sections 16C.10,72.2716C.26
          and 
         16C.27, all contracts for building and construction or repairs must be based on 72.28competitive bids or proposals. "Competitive proposals" specifically refers to the method 72.29of procurement described in section 16C.28, subdivision 1, paragraph (a), clause (2), 72.30and paragraph (c). 72.31    Subd. 2. Requirement contracts. Standard requirement price contracts for building 72.32and construction must be established by competitive bids as provided in subdivision 1. 72.33The standard requirement price contracts may contain escalation clauses and may provide 73.1for a negotiated price increase or decrease based upon a demonstrable industrywide or 73.2regional increase or decrease in the vendor's costs or for the addition of similar products or 73.3replacement items not significant to the total value of existing contracts. The term of these 73.4contracts may not exceed five years including all extensions.73.5    Subd. 3. Publication of notice; expenditures over $25,000. If the amount of an 73.6expenditure is estimated to exceed $25,000, bids or proposals must be solicited by public 73.7notice in a manner designated by the commissioner. To the extent practical, this must 73.8include posting on a state Web site. For expenditures over $50,000, when a call for bids is 73.9issued, the commissioner shall solicit sealed bids by providing notices to all prospective 73.10bidders known to the commissioner by posting notice on a state Web site at least seven 73.11days before the final date of submitting bids. All bids over $50,000 must be sealed when 73.12they are received and must be opened in public at the hour stated in the notice. All 73.13proposals responsive to a request for proposals according to section 16C.28, subdivision 73.141, paragraph (a), clause (2), and paragraph (c), shall be submitted and evaluated in the 73.15manner described in the request for proposals, regardless of the dollar amount. All original 73.16bids and proposals and all documents pertaining to the award of a contract must be retained 73.17and made a part of a permanent file or record and remain open to public inspection.73.18    Subd. 4. Building and construction contracts; $50,000 or less. An informal bid 73.19may be used for building, construction, and repair contracts that are estimated at less than 73.20$50,000. Informal bids must be authenticated by the bidder in a manner specified by the 73.21commissioner. Alternatively, a request for proposals may be issued according to section 73.2216C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c), for such contracts.73.23    Subd. 5. Standard specifications, security. Contracts must be based on the 73.24standard specifications prescribed and enforced by the commissioner under this chapter, 73.25unless otherwise expressly provided or as authorized under section 16C.28, subdivision 73.261, paragraph (a), clause (2), and paragraph (c). Each bidder for a contract vendor or 73.27contractor must furnish security approved by the commissioner to ensure the making of 73.28the contract being bid for.73.29    Subd. 6. Noncompetitive bids. Agencies are encouraged to contract with small 73.30targeted group businesses designated under section 
         16C.16 when entering into contracts 73.31that are not subject to competitive bidding procedures. 73.32    Sec. 7. Minnesota Statutes 2006, section 16C.27, subdivision 1, is amended to read:73.33    Subdivision 1. Single source of supply. Competitive bidding is or proposals are not 73.34required for contracts clearly and legitimately limited to a single source of supply, and the 73.35contract price may be best established by direct negotiation.74.1    Sec. 8. Minnesota Statutes 2006, section 16C.28, is amended to read:74.216C.28 CONTRACTS; AWARD.74.3    Subdivision 1. Lowest responsible bidder Award requirements.(a) All state 74.4building and construction contracts entered into by or under the supervision of the 74.5commissioner or an agency for which competitive bids or proposals are required must 74.6be awarded to the lowest responsible bidder, taking into consideration conformity with 74.7the specifications, terms of delivery, the purpose for which the contract is intended, the 74.8status and capability of the vendor, and other considerations imposed in the call for bids. 74.9The commissioner may decide which is the lowest responsible bidder for all contracts 74.10and may use the principles of life cycle costing, where appropriate, in determining the 74.11lowest overall bid. The head of the interested agency shall make the decision, subject 74.12to the approval of the commissioner. Any or all bids may be rejected. In a case where 74.13competitive bids are required and where all bids are rejected, new bids, if solicited, must 74.14be called for as in the first instance, unless otherwise provided by law. may be awarded to 74.15either of the following:74.16    (1) the lowest responsible bidder, taking into consideration conformity with the 74.17specifications, terms of delivery, the purpose for which the contract is intended, the status 74.18and capability of the vendor or contractor, other considerations imposed in the call for 74.19bids, and, where appropriate, principles of life-cycle costing; or74.20    (2) the vendor or contractor offering the best value, taking into account the 74.21specifications of the request for proposals, the price and performance criteria as set forth 74.22in section 16C.02, subdivision 4a, and described in the solicitation document.74.23    (b) The vendor or contractor must secure bonding, commercial general insurance 74.24coverage, and workers' compensation insurance coverage under paragraph (a), clause 74.25(1) or (2). The commissioner shall determine whether to use the procurement process 74.26described in paragraph (a), clause (1), or the procurement process described in paragraph 74.27(a), clause (2), and paragraph (c). If the commissioner uses the method in paragraph 74.28(a), clause (2), and paragraph (c), the head of the agency shall determine which vendor 74.29or contractor offers the best value, subject to the approval of the commissioner. Any 74.30or all bids or proposals may be rejected.74.31    (c) When using the procurement process described in subdivision 1, paragraph (a), 74.32clause (2), the solicitation document must state the relative weight of price and other 74.33selection criteria. The award must be made to the vendor or contractor offering the 74.34best value applying the weighted selection criteria. If an interview of the vendor's or 74.35contractor's personnel is one of the selection criteria, the relative weight of the interview 74.36shall be stated in the solicitation document and applied accordingly.75.1    Subd. 1a.Establishment and purpose.(a) The state recognizes the importance of 75.2the inclusion of a best value contracting system for construction as an alternative to the 75.3current low-bid system of procurement. In order to accomplish that goal, state and local 75.4governmental entities shall be able to choose the best value system in different phases.75.5    (b) "Best value" means the procurement method defined in section 16C.02, 75.6subdivision 4a.75.7    (c) The following entities are eligible to participate in phase I:  75.8    (1) state agencies; 75.9    (2) counties;75.10    (3) cities; and75.11    (4) school districts with the highest 25 percent enrollment of students in the state.75.12Phase I begins on the effective date of this section.75.13    (d) The following entities are eligible to participate in phase II:75.14    (1)  those entities included in phase I; and 75.15    (2)  school districts with the highest 50 percent enrollment of students in the state. 75.16Phase II begins two years from the effective date of this section.75.17    (e) The following entities are eligible to participate in phase III: 75.18    (1)  all entities included in phases I and II; and 75.19    (2)  all other townships, school districts, and political subdivisions in the state. 75.20Phase III begins three years from the effective date of this section.75.21    (f) The commissioner or any agency for which competitive bids or proposals are 75.22required may not use best value contracting as defined in section 16C.02, subdivision 4a, 75.23for more than one project annually, or 20 percent of its projects, whichever is greater, in 75.24each of the first three fiscal years in which best value construction contracting is used.75.25    Subd. 2. Alterations and erasures. A bid containing an alteration or erasure of 75.26any price contained in the bid which is used in determining the lowest responsible bid 75.27must be rejected unless the alteration or erasure is corrected in a manner that is clear and 75.28authenticated by an authorized representative of the responder. An alteration or erasure 75.29may be crossed out and the correction printed in ink or typewritten adjacent to it and 75.30initialed by an authorized representative of the responder.75.31    Subd. 3. Special circumstances. The commissioner may reject the bid or proposal 75.32of any bidder vendor or contractor who has failed to perform a previous contract with 75.33the state. In the case of identical low bids from two or more bidders, the commissioner 75.34may use negotiated procurement methods with the tied low bidders for that particular 75.35transaction so long as the price paid does not exceed the low tied bid price. The 76.1commissioner may award contracts to more than one bidder vendor or contractor in 76.2accordance with subdivision 1, if doing so does not decrease the service level or diminish 76.3the effect of competition.76.4    Subd. 4. Record. A record must be kept of all bids or proposals, including names of 76.5bidders, amounts of bids or proposals, and each successful bid or proposal. This record is 76.6open to public inspection, subject to section 13.591 and other applicable law.76.7    Subd. 5. Preferences not cumulative. The preferences under sections 
         16B.121, 76.816C.06, subdivision 7
         , and 
         16C.16 apply, but are not cumulative. The total percentage 76.9of preference granted on a contract may not exceed the highest percentage of preference 76.10allowed for that contract under any one of those sections. 76.11    Sec. 9. Minnesota Statutes 2006, section 103D.811, subdivision 3, is amended to read:76.12    Subd. 3. Awarding of contract. (a) At a time and place specified in the bid notice, 76.13the managers may accept or reject any or all bids and may award the contract to the lowest 76.14responsible bidder. The bidder to whom the contract is to be awarded must give a bond, 76.15with ample security, conditioned by satisfactory completion of the contract.76.16    (b) Bids must not be considered which in the aggregate exceed by more than 30 76.17percent the total estimated cost of construction or implementation.76.18    (c) As an alternative to the procurement method described in paragraph (a), the 76.19managers may issue a request for proposals and award the contract to the vendor or 76.20contractor offering the best value as described in section 16C.28, subdivision 1, paragraph 76.21(a), clause (2), and paragraph (c).76.22    (d) The contract must be in writing and be accompanied by or refer to the plans and 76.23specifications for the work to be done as prepared by the engineer for the watershed 76.24district. The plans and specifications shall become a part of the contract.76.25    (d)(e) The contract shall be approved by the managers and signed by the president, 76.26secretary, and contractor.76.27    Sec. 10. Minnesota Statutes 2006, section 103E.505, subdivision 5, is amended to read:76.28    Subd. 5. How contract may be awarded. The contract may be awarded in one 76.29job, in sections, or separately for labor and material and mustmay be let to the lowest 76.30responsible bidder. Alternatively, the contract may be awarded to the vendor or contractor 76.31offering the best value under a request for proposals as described in section 16C.28, 76.32subdivision 1, paragraph (a), clause (2), and paragraph (c).76.33    Sec. 11. Minnesota Statutes 2006, section 116A.13, subdivision 5, is amended to read:77.1    Subd. 5. How job may be let. The job may be let in one job, or in sections, or 77.2separately for labor and material, and shallmay be let to the lowest responsible bidder or 77.3bidders therefor. Alternatively, the contract may be awarded to the vendor or contractor 77.4offering the best value under a request for proposals as described in section 16C.28, 77.5subdivision 1, paragraph (a), clause (2), and paragraph (c).77.6    Sec. 12. Minnesota Statutes 2006, section 123B.52, subdivision 1, is amended to read:77.7    Subdivision 1. Contracts. A contract for work or labor, or for the purchase of 77.8furniture, fixtures, or other property, except books registered under the copyright laws, or 77.9for the construction or repair of school houses, the estimated cost or value of which shall 77.10exceed that specified in section 
         471.345, subdivision 3, must not be made by the school 77.11board without first advertising for bids or proposals by two weeks' published notice in the 77.12official newspaper. This notice must state the time and place of receiving bids and contain 77.13a brief description of the subject matter. 77.14    Additional publication in the official newspaper or elsewhere may be made as the 77.15board shall deem necessary.77.16    After taking into consideration conformity with the specifications, terms of delivery, 77.17and other conditions imposed in the call for bids, every such contract for which a call for 77.18bids has been issued must be awarded to the lowest responsible bidder, be duly executed 77.19in writing, and be otherwise conditioned as required by law. The person to whom the 77.20contract is awarded shall give a sufficient bond to the board for its faithful performance. 77.21Notwithstanding section 
         574.26 or any other law to the contrary, on a contract limited 77.22to the purchase of a finished tangible product, a board may require, at its discretion, a 77.23performance bond of a contractor in the amount the board considers necessary. A record 77.24must be kept of all bids, with names of bidders and amount of bids, and with the successful 77.25bid indicated thereon. A bid containing an alteration or erasure of any price contained in 77.26the bid which is used in determining the lowest responsible bid must be rejected unless the 77.27alteration or erasure is corrected as provided in this section. An alteration or erasure may 77.28be crossed out and the correction thereof printed in ink or typewritten adjacent thereto and 77.29initialed in ink by the person signing the bid. In the case of identical low bids from two or 77.30more bidders, the board may, at its discretion, utilize negotiated procurement methods 77.31with the tied low bidders for that particular transaction, so long as the price paid does not 77.32exceed the low tied bid price. In the case where only a single bid is received, the board 77.33may, at its discretion, negotiate a mutually agreeable contract with the bidder so long as 77.34the price paid does not exceed the original bid. If no satisfactory bid is received, the 77.35board may readvertise. Standard requirement price contracts established for supplies or 78.1services to be purchased by the district must be established by competitive bids. Such 78.2standard requirement price contracts may contain escalation clauses and may provide for a 78.3negotiated price increase or decrease based upon a demonstrable industrywide or regional 78.4increase or decrease in the vendor's costs. Either party to the contract may request that the 78.5other party demonstrate such increase or decrease. The term of such contracts must not 78.6exceed two years with an option on the part of the district to renew for an additional two 78.7years. Contracts for the purchase of perishable food items, except milk for school lunches 78.8and vocational training programs, in any amount may be made by direct negotiation 78.9by obtaining two or more written quotations for the purchase or sale, when possible, 78.10without advertising for bids or otherwise complying with the requirements of this section 78.11or section 
         471.345, subdivision 3. All quotations obtained shall be kept on file for a 78.12period of at least one year after receipt. 78.13    Every contract made without compliance with the provisions of this section shall be 78.14void. Except in the case of the destruction of buildings or injury thereto, where the public 78.15interest would suffer by delay, contracts for repairs may be made without advertising 78.16for bids.78.17    Sec. 13. Minnesota Statutes 2006, section 123B.52, is amended by adding a 78.18subdivision to read:78.19    Subd. 1b.Best value alternative.As an alternative to the procurement method 78.20described in subdivision 1, a contract for construction, building, alteration, improvement, 78.21or repair work may be awarded to the vendor or contractor offering the best value under a 78.22request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause 78.23(2), and paragraph (c).78.24    Sec. 14. Minnesota Statutes 2006, section 160.17, is amended by adding a subdivision 78.25to read:78.26    Subd. 2a.Best value alternative.As an alternative to the procurement method 78.27referenced in subdivision 2, counties or towns may issue a request for proposal and award 78.28the contract to the vendor or contractor offering the best value as described in section 78.2916C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).78.30    Sec. 15. Minnesota Statutes 2006, section 160.262, is amended by adding a subdivision 78.31to read:78.32    Subd. 5.Best value alternative.As an alternative to the procurement method 78.33described in subdivision 4, the commissioner may allow for the award of design-build 79.1contracts for the projects described in subdivision 4 to the vendor or contractor offering 79.2the best value under a request for proposals as described in section 16C.28, subdivision 1, 79.3paragraph (a), clause (2), and paragraph (c).79.4    Sec. 16. Minnesota Statutes 2006, section 161.32, is amended by adding a subdivision 79.5to read:79.6    Subd. 1f.Best value alternative.As an alternative to the procurement method 79.7described in subdivisions 1a to 1e, the commissioner may issue a request for proposals 79.8and award the contract to the vendor or contractor offering the best value as described in 79.9section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).79.10    Sec. 17. [161.3206] BEST VALUE CONTRACTING AUTHORITY.79.11    Notwithstanding sections 16C.25, 161.32, 161.321, or any other law to the contrary, 79.12the commissioner may solicit and award all contracts, other than design-build contracts 79.13governed by section 161.3412, for a project on the basis of a best value selection process 79.14as defined in section 16C.02, subdivision 4a. Section 16C.08 does not apply to this section.79.15    Sec. 18. Minnesota Statutes 2006, section 161.3412, subdivision 1, is amended to read:79.16    Subdivision 1. Best value selection for design-build contracts. Notwithstanding 79.17sections 
         16C.25, 
         161.32, and 
         161.321, or any other law to the contrary, the commissioner 79.18may solicit and award a design-build contract for a project on the basis of a best value 79.19selection process. Section 
         16C.08 does not apply to design-build contracts to which the 79.20commissioner is a party. 79.21    Sec. 19. Minnesota Statutes 2006, section 161.38, subdivision 4, is amended to read:79.22    Subd. 4. Effects on other law of public contract with commissioner. Whenever 79.23the road authority of any city enters into an agreement with the commissioner pursuant 79.24to this section, and a portion of the cost is to be assessed against benefited property, 79.25the letting of a public contract by the commissioner for the work shall be deemed to 79.26comply with statutory or charter provisions requiring the city (1) to advertise for bids 79.27before awarding a contract for a public improvement, (2) to let the contract to the lowest 79.28responsible bidder or to the vendor or contractor offering the best value, and (3) to require 79.29a performance bond to be filed by the contractor before undertaking the work. The 79.30contract so let by the commissioner and the performance bond required of the contractor 79.31by the commissioner shall be considered to be the contract and bond of the city for the 79.32purposes of complying with the requirements of any applicable law or charter provision, 80.1and the bond shall inure to the benefit of the city and operate for their protection to the 80.2same extent as though they were parties thereto.80.3    Sec. 20. Minnesota Statutes 2006, section 365.37, is amended by adding a subdivision 80.4to read:80.5    Subd. 2a.Best value alternative.As an alternative to the procurement method 80.6described in subdivision 2, a contract for construction, building, alteration, improvement, 80.7or repair work may be awarded to the vendor or contractor offering the best value under a 80.8request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause 80.9(2), and paragraph (c).80.10    Sec. 21. Minnesota Statutes 2006, section 374.13, is amended to read:80.11374.13 TO ADVERTISE FOR BIDS.80.12    Subdivision 1.Bidding process. When the plans and specifications are completed 80.13and approved by the city council and the county board, the commission shall, after notice 80.14appropriate to inform possible bidders, obtain bids or proposals for all or any portion of 80.15the work or materials, or both, to be done, performed, or furnished in the construction of 80.16the building. All bids or proposals shall be sealed by the bidders or proposers and filed 80.17with the commission at or before the time specified for the opening of bids or proposals. 80.18At the time and place specified for the opening of bids or proposals, the commission shall 80.19meet, open the bids or proposals, tabulate them, and award the contract or contracts to the 80.20responsible bidder whose bid or proposal is the most favorable to the city or county, or 80.21reject all bids and proposals. If all bids or proposals are rejected, the commission may, 80.22after similar notice, obtain more bids or proposals or may modify or change the plans and 80.23specifications and submit the modified plans and specifications to the city council and the 80.24county board for approval. When the modified or changed plans and specifications are 80.25satisfactory to both the city council and the county board, the plans and specifications 80.26shall be returned to the commission and the commission shall proceed again, after similar 80.27notice, to obtain bids or proposals. Any contract awarded by the commission shall be 80.28subject to approval by the city council and the county board.80.29    Subd. 2.Best value alternative.As an alternative to the procurement method 80.30described in subdivision 1, the commission may issue a request for proposals and award 80.31the contract to the vendor or contractor offering the best value as described in section 80.3216C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).81.1    Sec. 22. Minnesota Statutes 2006, section 375.21, is amended by adding a subdivision 81.2to read:81.3    Subd. 1b.Best value alternative.As an alternative to the procurement method 81.4described in subdivision 1, a county board may award a contract for construction, building, 81.5alteration, improvement, or repair work to the vendor or contractor offering the best value 81.6under a request for proposals as described in section 16C.28, subdivision 1, paragraph 81.7(a), clause (2), and paragraph (c).81.8    Sec. 23. Minnesota Statutes 2006, section 383C.094, is amended by adding a 81.9subdivision to read:81.10    Subd. 1a.Contracts in excess of $500; best value alternative.As an alternative to 81.11the procurement method described in subdivision 1, the contract may be awarded to the 81.12vendor or contractor offering the best value under a request for proposals as described in 81.13section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).81.14    Sec. 24. Minnesota Statutes 2006, section 412.311, is amended to read:81.15412.311 CONTRACTS.81.16    Subdivision 1.Lowest responsible bidder. Except as provided in sections 
         471.8781.17to 
         471.89, no member of a council shall be directly or indirectly interested in any contract 81.18made by the council. Whenever the amount of a contract for the purchase of merchandise, 81.19materials or equipment or for any kind of construction work undertaken by the city is 81.20estimated to exceed the amount specified by section 
         471.345, subdivision 3, the contract 81.21shall be let to the lowest responsible bidder, after notice has been published once in the 81.22official newspaper at least ten days in advance of the last day for the submission of bids. If 81.23the amount of the contract exceeds $1,000, it shall be entered into only after compliance 81.24with section 
         471.345. 81.25    Subd. 2.Best value alternative.As an alternative to the procurement method 81.26described in subdivision 1, a contract for construction, building, alteration, improvement, 81.27or repair work may be awarded to the vendor or contractor offering the best value under a 81.28request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause 81.29(2), and paragraph (c).81.30    Sec. 25. Minnesota Statutes 2006, section 429.041, is amended by adding a subdivision 81.31to read:81.32    Subd. 2a.Best value alternative.As an alternative to the procurement method 81.33described in subdivision 2, the council may issue a request for proposals and award the 82.1contract to the vendor or contractor offering the best value as described in section 16C.28, 82.2subdivision 1, paragraph (a), clause (2), and paragraph (c).82.3    Sec. 26. Minnesota Statutes 2006, section 458D.21, is amended by adding a 82.4subdivision to read:82.5    Subd. 2a.Contracts in excess of $5,000; best value alternative.As an alternative 82.6to the procurement method described in subdivision 2, the board may issue a request for 82.7proposals and award the contract to the vendor or contractor offering the best value as 82.8described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).82.9    Sec. 27. Minnesota Statutes 2006, section 469.015, is amended by adding a subdivision 82.10to read:82.11    Subd. 1a.Best value alternative.As an alternative to the procurement method 82.12described in subdivision 1, the authority may issue a request for proposals and award the 82.13contract to the vendor or contractor offering the best value under a request for proposals as 82.14described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).82.15    Sec. 28. Minnesota Statutes 2006, section 469.068, subdivision 1, is amended to read:82.16    Subdivision 1. Contracts; bids; bonds. All construction work and every purchase 82.17of equipment, supplies, or materials necessary in carrying out the purposes of sections 82.18469.048
          to 
         469.068, that involve the expenditure of $1,000 or more, shall be awarded by 82.19contract as provided in this subdivision or in subdivision 1a. Before receiving bids under 82.20sections 
         469.048 to 
         469.068, the authority shall publish, once a week for two consecutive 82.21weeks in the official newspaper of the port's city, a notice that bids will be received for the 82.22construction work, or purchase of equipment, supplies, or materials. The notice shall state 82.23the nature of the work, and the terms and conditions upon which the contract is to be let 82.24and name a time and place where the bids will be received, opened, and read publicly, 82.25which time shall be not less than seven days after the date of the last publication. After 82.26the bids have been received, opened, read publicly, and recorded, the commissioners 82.27shall award the contract to the lowest responsible bidder, reserving the right to reject 82.28any or all bids. The contract shall be executed in writing and the person to whom the 82.29contract is awarded shall give sufficient bond to the board for its faithful performance. If 82.30no satisfactory bid is received, the port authority may readvertise, or, by an affirmative 82.31vote of two of its commissioners in the case of a three-member commission, or five of 82.32its members in the case of a seven-member commission, may authorize the authority 82.33to perform any part or parts of any construction work by day labor under conditions it 83.1prescribes. The commissioners may establish reasonable qualifications to determine 83.2the fitness and responsibility of bidders, and require bidders to meet the qualifications 83.3before bids are accepted. If the commissioners by a two-thirds or five-sevenths vote 83.4declare that an emergency exists requiring the immediate purchase of any equipment or 83.5material or supplies at a cost in excess of $1,000, but not exceeding $5,000, in amount, 83.6or making of emergency repairs, it shall not be necessary to advertise for bids, but the 83.7material, equipment, or supplies may be purchased in the open market at the lowest price 83.8obtainable, or the emergency repairs may be contracted for or performed without securing 83.9formal competitive bids. An emergency, for purposes of this section, is unforeseen 83.10circumstances or conditions which result in the jeopardizing of human life or property. 83.11    In all contracts involving the employment of labor, the commissioners shall stipulate 83.12conditions they deem reasonable, as to the hours of labor and wages and may stipulate as 83.13to the residence of employees to be employed by the contractors.83.14    Bonds shall be required from contractors for any works of construction as provided 83.15in and subject to all the provisions of sections 
         574.26 to 
         574.31. 83.16    Sec. 29. Minnesota Statutes 2006, section 469.068, is amended by adding a subdivision 83.17to read:83.18    Subd. 1a.Contracts; best value alternative.As an alternative to the procurement 83.19method described in subdivision 1, a contract may be awarded to the vendor or contractor 83.20offering the best value under a request for proposals as described in section 16C.28, 83.21subdivision 1, paragraph (a), clause (2), and paragraph (c).83.22    Sec. 30. Minnesota Statutes 2006, section 469.101, is amended by adding a subdivision 83.23to read:83.24    Subd. 5a.Construction contracts.For all contracts for construction, alteration, 83.25repair, or maintenance work, the authority may award contracts to the vendor offering the 83.26best value, and "best value" shall be defined and applied as set forth in sections 16C.02, 83.27subdivision 4a, and 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c). 83.28Alternatively, the authority may award all contracts for construction, alteration, repair, 83.29or maintenance work to the lowest responsible bidder, reserving the right to reject any 83.30or all bids.83.31    Sec. 31. Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision 83.32to read:84.1    Subd. 3a.Contracts over $50,000; best value alternative.As an alternative to the 84.2procurement method described in subdivision 3, municipalities may award a contract for 84.3construction, alteration, repair, or maintenance work to the vendor or contractor offering 84.4the best value under a request for proposals as described in section 16C.28, subdivision 1, 84.5paragraph (a), clause (2), and paragraph (c).84.6    Sec. 32. Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision 84.7to read:84.8    Subd. 4a.Contracts from $10,000 to $50,000; best value alternative.As an 84.9alternative to the procurement method described in subdivision 4, municipalities may 84.10award a contract for construction, alteration, repair, or maintenance work to the vendor or 84.11contractor offering the best value under a request for proposals as described in section 84.1216C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).84.13    Sec. 33. Minnesota Statutes 2006, section 471.345, subdivision 5, is amended to read:84.14    Subd. 5. Contracts less than $10,000. If the amount of the contract is estimated 84.15to be $10,000 or less, the contract may be made either upon quotation or in the open 84.16market, in the discretion of the governing body. If the contract is made upon quotation 84.17it shall be based, so far as practicable, on at least two quotations which shall be kept on 84.18file for a period of at least one year after their receipt. Alternatively, municipalities may 84.19award a contract for construction, alteration, repair, or maintenance work to the vendor or 84.20contractor offering the best value under a request for proposals as described in section 84.2116C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).84.22    Sec. 34. Minnesota Statutes 2006, section 473.523, is amended by adding a subdivision 84.23to read:84.24    Subd. 1a.Contracts over $50,000; best value alternative.As an alternative to 84.25the procurement method described in subdivision 1, the council may issue a request for 84.26proposals and award the contract to the vendor or contractor offering the best value 84.27under a request for proposals as described in section 16C.28, subdivision 1, paragraph 84.28(a), clause (2), and paragraph (c).84.29    Sec. 35. Minnesota Statutes 2006, section 473.756, subdivision 12, is amended to read:84.30    Subd. 12. Contracts. The authority may enter into a development agreement with 84.31the team, the county, or any other entity relating to the construction, financing, and use of 84.32the ballpark and related facilities and public infrastructure.  The authority may contract 85.1for materials, supplies, and equipment in accordance with sections 
         471.345 and 
         473.754, 85.2except that the authority, with the consent of the county, may employ or contract with 85.3persons, firms, or corporations to perform one or more or all of the functions of architect, 85.4engineer, or construction manager with respect to all or any part of the ballpark and 85.5public infrastructure.  Alternatively, at the request of the team and with the consent of the 85.6county, the authority shall authorize the team to provide for the design and construction 85.7of the ballpark and related public infrastructure, subject to terms of Laws 2006, chapter 85.8257.  The construction manager may enter into contracts with contractors for labor, 85.9materials, supplies, and equipment for the construction of the ballpark and related public 85.10infrastructure through the process of public bidding, except that the construction manager 85.11may, with the consent of the authority or the team:85.12    (1) narrow the listing of eligible bidders to those which the construction manager 85.13determines to possess sufficient expertise to perform the intended functions;85.14    (2) award contracts to the contractors that the construction manager determines 85.15provide the best value under a request for proposals as described in section 16C.28, 85.16subdivision 1, paragraph (a), clause (2), and paragraph (c), which are not required to be 85.17the lowest responsible bidder; and85.18    (3) for work the construction manager determines to be critical to the completion 85.19schedule, award contracts on the basis of competitive proposals or perform work with 85.20its own forces without soliciting competitive bids if the construction manager provides 85.21evidence of competitive pricing.85.22The authority shall require that the construction manager certify, before the contract is 85.23signed, a fixed and stipulated construction price and completion date to the authority 85.24and post a performance bond in an amount at least equal to 100 percent of the certified 85.25price, to cover any costs which may be incurred in excess of the certified price, including 85.26but not limited to costs incurred by the authority or loss of revenues resulting from 85.27incomplete construction on the completion date.  The authority may secure surety bonds 85.28as provided in section 
         574.26, securing payment of just claims in connection with all 85.29public work undertaken by it. Persons entitled to the protection of the bonds may enforce 85.30them as provided in sections 
         574.28 to 
         574.32, and shall not be entitled to a lien on any 85.31property of the authority under the provisions of sections 
         514.01 to 
         514.16. Contracts for 85.32construction and operation of the ballpark must include programs, including Youthbuild, 85.33to provide for participation by small local businesses and businesses owned by people of 85.34color, and the inclusion of women and people of color in the workforces of contractors 85.35and ballpark operators. The construction of the ballpark is a "project" as that term is 86.1defined in section 
         177.42, subdivision 2, and is subject to the prevailing wage law under 86.2sections 
         177.41 to 
         177.43.