1.1 	A bill for an act
1.2 	relating to government finance; appropriating money for general legislative 
1.3 	and administrative expenses of state government; regulating state and local 
1.4 	government operations; amending Minnesota Statutes 2006, sections 3.987, 
1.5 	subdivision 1; 3.988, subdivision 3; 3.989, subdivisions 2, 3; 15B.17, subdivision 
1.6 	1; 16A.103, subdivision 2; 16A.1286, subdivision 2; 16A.28, subdivision 1; 
1.7 	270B.14, by adding a subdivision.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	ARTICLE 1
1.10 	STATE GOVERNMENT APPROPRIATIONS

1.11	Section 1. SUMMARY OF APPROPRIATIONS.
 	
1.12 	The amounts shown in this section summarize direct appropriations, by fund, made 
1.13 	in this article.

1.14			2008
		2009
		Total
	
1.15	General
	$
	384,179,000
	$
	357,550,000
	$
	741,729,000
	
1.16	Health Care Access
		1,808,000
		1,835,000
		3,643,000
	
1.17
1.18	State Government Special 
Revenue
		2,119,000
		2,124,000
		4,243,000
	
1.19	Environmental
		440,000
		444,000
		884,000
	
1.20	Remediation
		250,000
		250,000
		500,000
	
1.21	Special Revenue
		5,686,000
		5,502,000
		11,188,000
	
1.22
1.23	Highway User Tax 
Distribution
		2,125,000
		2,154,000
		4,279,000
	
1.24	Workers' Compensation
		7,640,000
		7,350,000
		14,990,000
	
1.25	Total
	$
	404,247,000
	$
	377,209,000
	$
	781,456,000

1.26	Sec. 2. STATE GOVERNMENT APPROPRIATIONS.
 	
2.1 	The sums shown in the columns marked "appropriations" are appropriated to the 
2.2 	agencies and for the purposes specified in this article. The appropriations are from the 
2.3 	general fund, or another named fund, and are available for the fiscal years indicated 
2.4 	for each purpose. The figures "2008" and "2009" used in this article mean that the 
2.5 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
2.6 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
2.7 	year 2009. "The biennium" is fiscal years 2008 and 2009. 

2.8				APPROPRIATIONS
	
2.9				Available for the Year
	
2.10				Ending June 30
	
2.11					2008
		2009

2.12	Sec. 3. LEGISLATURE
 	$
	62,971,000
	$
	63,918,000

2.13	Appropriations by Fund
	
2.14		2008
	2009
	
2.15	General
	62,843,000
	63,790,000
	
2.16	Health Care Access
	128,000
	128,000

2.17
2.18	Sec. 4. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	3,647,000
	$
	3,712,000
	
2.19 	(a) This appropriation is to fund the Office of 
2.20 	the Governor and Lieutenant Governor.
2.21 	$19,000 the first year and $19,000 the 
2.22 	second year are for necessary expenses in 
2.23 	the normal performance of the governor's 
2.24 	and lieutenant governor's duties for which no 
2.25 	other reimbursement is provided.
2.26 	(b) By September 1 of each year, the 
2.27 	commissioner of finance shall report to 
2.28 	the chairs of the senate Governmental 
2.29 	Operations Budget Division and the house 
2.30 	State Government Finance Division any 
2.31 	personnel costs incurred by the Office of 
2.32 	the Governor and Lieutenant Governor that 
2.33 	were supported by appropriations to other 
2.34 	agencies during the previous fiscal year. 
2.35 	The Office of the Governor shall inform the 
3.1 	chairs of the divisions before initiating any 
3.2 	interagency agreements.

3.3	Sec. 5. STATE AUDITOR
 	$
	8,438,000
	$
	8,605,000

3.4	Sec. 6. ATTORNEY GENERAL
 	$
	25,482,000
	$
	26,098,000

3.5	Appropriations by Fund
	
3.6		2008
	2009
	
3.7	General
	23,368,000
	23,979,000
	
3.8
3.9	State Government 
Special Revenue
	1,719,000
	1,724,000
	
3.10	Environmental
	145,000
	145,000
	
3.11	Remediation
	250,000
	250,000

3.12	Sec. 7. SECRETARY OF STATE
 	$
	5,992,000
	$
	6,229,000

3.13
3.14	Sec. 8. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	708,000
	$
	722,000

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

3.16
3.17	Sec. 10. OFFICE OF ENTERPRISE 
TECHNOLOGY
 	$
	36,025,000
	$
	18,892,000
	
3.18 	(a) $7,049,000 the first year and $4,455,000 
3.19 	the second year are for consolidation of 
3.20 	information technology infrastructure and 
3.21 	services.
3.22 	(b) $15,000,000 the first year is for the first 
3.23 	phase of an electronic licensing system. 
3.24 	This is a onetime appropriation. This 
3.25 	appropriation carrys forward to the second 
3.26 	year.
3.27 	(c) $8,163,000 the first year and $8,909,000 
3.28 	the second year are for information 
3.29 	technology security.
3.30 	(d) $612,000 the first year and $741,000 the 
3.31 	second year are for oversight and analysis of 
3.32 	state technology investments.
4.1 	(e) $1,456,000 the first year and $1,000,000 
4.2 	the second year are for small agency 
4.3 	technology infrastructure. During the first 
4.4 	biennium, these amounts are intended to 
4.5 	include hardware and software improvements 
4.6 	for the Asian-Pacific Council, the Capitol 
4.7 	Area Architectural and Planning Board, 
4.8 	the Minnesota Library for the Blind, 
4.9 	the Minnesota State Academies, and 
4.10 	the Ombudsman for Mental Health and 
4.11 	Developmental Disabilities. Ongoing 
4.12 	funding for improvements made during fiscal 
4.13 	years 2008 and 2009 may be added to the 
4.14 	base funding for those agencies in fiscal 
4.15 	years 2010 and 2011.

4.16	Sec. 11. ADMINISTRATIVE HEARINGS
 	$
	7,821,000
	$
	7,535,000

4.17	Appropriations by Fund
	
4.18		2008
	2009
	
4.19	General
	281,000
	285,000
	
4.20
4.21	Workers' 
Compensation
	7,540,000
	7,250,000

4.22	Sec. 12. ADMINISTRATION

4.23	Subdivision 1. Total Appropriation
 	$
	27,626,000
	$
	22,679,000
	
4.24 	The amounts that may be spent for each 
4.25 	purpose are specified in the following 
4.26 	subdivisions.

4.27	Subd. 2.State Facilities Services
 		16,940,000
		12,592,000
	
4.28 	(a) $7,888,000 the first year and $7,888,000 
4.29 	the second year are for office space costs of 
4.30 	the legislature and veterans organizations, 
4.31 	for ceremonial space, and for statutorily free 
4.32 	space.
4.33 	(b) $5,579,000 the first year is to purchase 
4.34 	and implement a Web-enabled, shared 
5.1 	computer system to facilitate the state's real 
5.2 	property portfolio management. $1,134,000 
5.3 	the second year is to fund software 
5.4 	subscriptions and technical support expenses. 
5.5 	The base appropriation for ongoing system 
5.6 	expenses is $1,151,000 for fiscal year 2010 
5.7 	and $1,151,000 for fiscal year 2011.
5.8 	(c) $250,000 the first year and $250,000 the 
5.9 	second year are for the energy conservation 
5.10 	recommissioning activities in state buildings.

5.11	Subd. 3.State and Community Services
 		2,525,000
		2,705,000
	
5.12 	(a) $60,000 the first year and $240,000 the 
5.13 	second year are to fund activities to prepare 
5.14 	for and promote the 2010 census. Base 
5.15 	funding for this activity is $260,000 in fiscal 
5.16 	year 2010 and $180,000 in fiscal year 2011.
5.17 	(b) $258,000 the first year and $258,000 the 
5.18 	second year are for the Land Management 
5.19 	Information Center.

5.20	Subd. 4.Administrative Management Services
 		6,206,000
		5,427,000
	
5.21 	(a) $250,000 the first year and $250,000 the 
5.22 	second year is to create an Office of Grants 
5.23 	Management to standardize state grants 
5.24 	management policies and procedures.
5.25 	(b) $285,000 the first year and $276,000 
5.26 	the second year are to fund a two-year 
5.27 	pilot project to reduce state expenditures on 
5.28 	professional/technical contracts negotiations. 
5.29 	This appropriation should not be included in 
5.30 	the base for fiscal years 2009 and 2010.
5.31 	(c) $250,000 the first year and $250,000 
5.32 	the second year are to establish a small 
5.33 	agency resource team to consolidate and 
5.34 	streamline the human resources and financial 
6.1 	management activities for small state 
6.2 	agencies, boards, and councils.
6.3 	(d) $850,000 the first year is a onetime 
6.4 	appropriation for a targeted group business 
6.5 	disparity study.
6.6 	(e) $74,000 the first year and $74,000 the 
6.7 	second year are for the Developmental 
6.8 	Disabilities Council.

6.9	Subd. 5.Public Broadcasting
 		1,955,000
		1,955,000
	
6.10 	(a) $963,000 the first year and $963,000 
6.11 	the second year are for matching grants for 
6.12 	public television.
6.13 	(b) $398,000 the first year and $398,000 
6.14 	the second year are for public television 
6.15 	equipment grants. Equipment or matching 
6.16 	grant allocations shall be made after 
6.17 	considering the recommendations of the 
6.18 	Minnesota Public Television Association.
6.19 	(c) $17,000 the first year and $17,000 the 
6.20 	second year are for grants to the Twin Cities 
6.21 	regional cable channel.
6.22 	(d) $387,000 the first year and $387,000 the 
6.23 	second year are for community service grants 
6.24 	to public educational radio stations. The 
6.25 	grants must be allocated after considering 
6.26 	the recommendations of the Association of 
6.27 	Minnesota Public Educational Radio Stations 
6.28 	under Minnesota Statutes, section 129D.14.
6.29 	(e) $190,000 the first year and $190,000 
6.30 	the second year are for equipment grants to 
6.31 	Minnesota Public Radio, Inc. 
6.32 	(f) Any unencumbered balance remaining 
6.33 	the first year for grants to public television or 
7.1 	radio stations does not cancel and is available 
7.2 	for the second year.

7.3
7.4
7.5	Sec. 13. CAPITOL AREA 
ARCHITECTURAL AND PLANNING 
BOARD
 	$
	304,000
	$
	313,000

7.6	Sec. 14. FINANCE

7.7	Subdivision 1. Total Appropriation
 	$
	20,382,000
	$
	17,331,000
	
7.8 	The amounts that may be spent for each 
7.9 	purpose are specified in the following 
7.10 	subdivisions.

7.11	Subd. 2.State Financial Management
 		8,912,000
		8,752,000
	
7.12 	(a) $315,000 the first year is for the state's 
7.13 	share of the cost of bankruptcy counsel 
7.14 	representing joint interests of the state and 
7.15 	the city of Duluth in the Northwest Airlines 
7.16 	bankruptcy. This is a onetime appropriation.
7.17 	(b) Notwithstanding the provisions of 
7.18 	Minnesota Statutes, section 16A.1522, 
7.19 	subdivision 4, the commissioner of finance 
7.20 	shall designate any positive general fund 
7.21 	budgetary balance on June 30, 2007, as an 
7.22 	unrestricted balance. Money so designated 
7.23 	shall remain available for general fund 
7.24 	appropriations authorized in fiscal years 
7.25 	2008 and 2009.

7.26
7.27	Subd. 3.Information and Management 
Services
 		11,470,000
		8,579,000
	
7.28 	$5,000,000 the first year and $2,000,000 
7.29 	the second year are for costs related to the 
7.30 	Minnesota Accounting and Procurement 
7.31 	System (MAPS). $4,500,000 the first 
7.32 	year and $2,000,000 the second year are 
7.33 	to implement remediation strategies as 
7.34 	necessary to avoid a systemic failure. 
8.1 	$500,000 of the first year total is for planning 
8.2 	for the system's eventual replacement.

8.3	Sec. 15. EMPLOYEE RELATIONS
 	$
	6,249,000
	$
	6,344,000
	
8.4 	$500,000 each year is for the Center for 
8.5 	Health Care Purchasing Improvement.

8.6	Sec. 16. REVENUE

8.7	Subdivision 1. Total Appropriation
 	$
	124,957,000
	$
	124,284,000

8.8	Appropriations by Fund
	
8.9		2008
	2009
	
8.10	General
	120,857,000
	120,124,000
	
8.11	Health Care Access
	1,680,000
	1,707,000
	
8.12
8.13	Highway User Tax 
Distribution
	2,125,000
	2,154,000
	
8.14	Environmental
	295,000
	299,000
	
8.15 	The amounts that may be spent for each 
8.16 	purpose are specified in the following 
8.17 	subdivisions.

8.18	Subd. 2.Tax System Management
 		105,781,000
		104,099,000

8.19	Appropriations by Fund
	
8.20	General
	101,681,000
	99,939,000
	
8.21	Health Care Access
	1,680,000
	1,707,000
	
8.22
8.23	Highway User Tax 
Distribution
	2,125,000
	2,154,000
	
8.24	Environmental
	295,000
	299,000
	
8.25 	(a) $3,455,000 the first year and $4,352,000 
8.26 	the second year are for additional activities 
8.27 	to identify and collect tax liabilities from 
8.28 	individuals and businesses that currently 
8.29 	do not pay all taxes owed. This initiative 
8.30 	is expected to result in new general fund 
8.31 	revenues of $21,200,000 for the biennium 
8.32 	ending June 30, 2009.
8.33 	(b) The department must report to the chairs 
8.34 	of the house of representatives Ways and 
8.35 	Means and senate Finance Committees by 
9.1 	March 1, 2008, and January 15, 2009, on the 
9.2 	following performance indicators:
9.3 	(1) the number of corporations noncompliant 
9.4 	with the corporate tax system each year and 
9.5 	the percentage and dollar amounts of valid 
9.6 	tax liabilities collected;
9.7 	(2) the number of businesses noncompliant 
9.8 	with the sales and use tax system and the 
9.9 	percentage and dollar amount of the valid tax 
9.10 	liabilities collected; and
9.11 	(3) the number of individual noncompliant 
9.12 	cases resolved and the percentage and dollar 
9.13 	amounts of valid tax liabilities collected.
9.14 	(c) The reports must also identify base-level 
9.15 	expenditures and staff positions related to 
9.16 	compliance and audit activities, including 
9.17 	baseline information as of January 1, 2006. 
9.18 	The information must be provided at the 
9.19 	budget activity level.
9.20 	(d) $10,000,000 the first year and $6,000,000 
9.21 	the second year are for the purchase and 
9.22 	development of an integrated tax software 
9.23 	package. This appropriation must be 
9.24 	included in the agency appropriation base 
9.25 	through fiscal year 2011.
9.26 	(e) $900,000 in fiscal year 2008 and 
9.27 	$900,000 in fiscal year 2009 are for property 
9.28 	tax-related technological enhancements.

9.29	Subd. 3.Accounts Receivable Management
 		19,176,000
		20,185,000
	
9.30 	$875,000 the first year and $1,555,000 the 
9.31 	second year are for additional activities 
9.32 	to identify and collect tax liabilities from 
9.33 	individuals and businesses that currently do 
9.34 	not pay all taxes owed. This initiative is 
10.1 	expected to result in new general revenues of 
10.2 	$30,000,000 for the biennium ending June 
10.3 	30, 2009.

10.4	Sec. 17. MILITARY AFFAIRS

10.5	Subdivision 1.Total Appropriation
 	$
	22,126,000
	$
	20,609,000

10.6	Appropriations by Fund
	
10.7		2008
	2009
	
10.8	General
	21,271,000
	19,754,000
	
10.9	Special Revenue
	855,000
	855,000
	
10.10 	The amounts that may be spent for each 
10.11 	purpose are specified in the following 
10.12 	subdivisions.

10.13	Subd. 2.Maintenance of Training Facilities
 		7,504,000
		7,448,000
	
10.14 	$185,000 the first year is to pay special 
10.15 	assessments levied against state property. 
10.16 	This is a onetime appropriation.

10.17	Subd. 3.General Support
 		3,558,000
		2,095,000
	
10.18 	(a) $1,500,000 the first year is for the 
10.19 	Minnesota National Guard reintegration 
10.20 	program. This appropriation is available 
10.21 	until spent.
10.22 	(b) $275,000 the first year and $285,000 the 
10.23 	second year are for additional staffing.
10.24 	(c) $855,000 each year is from the account 
10.25 	in the special revenue fund established in 
10.26 	Minnesota Statutes, section 190.19, for 
10.27 	grants under that section.

10.28	Subd. 4.Enlistment Incentives
 		10,209,000
		10,211,000
	
10.29 	If appropriations for either year of the 
10.30 	biennium are insufficient, the appropriation 
10.31 	from the other year is available. The 
10.32 	appropriations for enlistment incentives are 
10.33 	available until expended.

11.1	Sec. 18. VETERANS AFFAIRS
 	$
	15,408,000
	$
	14,473,000

11.2	Appropriations by Fund
	
11.3		2008
	2009
	
11.4	General
	14,553,000
	13,618,000
	
11.5	Special Revenue
	855,000
	855,000
	
11.6 	(a) $2,000,000 each year is for outreach to 
11.7 	veterans.
11.8 	(b) $1,000,000 each year is for state soldier's 
11.9 	assistance under Minnesota Statutes, section 
11.10 	197.05.
11.11 	(c) $1,400,000 the first year and $900,000 
11.12 	the second year are for the higher education 
11.13 	veterans assistance program under Minnesota 
11.14 	Statutes, section 197.585. This appropriation 
11.15 	must be included in the agency appropriation 
11.16 	base through fiscal year 2011.
11.17 	(d) $500,000 each year is for administration 
11.18 	of veterans programming.
11.19 	(e) $100,000 each year is for information 
11.20 	technology.
11.21 	(f) $75,000 each year is for operations at the 
11.22 	Minnesota State Veterans Cemetery in Little 
11.23 	Falls.
11.24 	(g) $1,900,000 the first year and $1,400,000 
11.25 	the second year are for grants to counties 
11.26 	under the terms of this section. The 
11.27 	commissioner shall issue a request for 
11.28 	proposals for grants to enhance the benefits, 
11.29 	programs, and services provided to veterans. 
11.30 	The request must specify that priority 
11.31 	will be given to proposals that meet the 
11.32 	programmatic goals established by the 
11.33 	commissioner, including proposals that will:
12.1 	(1) provide the most effective outreach to 
12.2 	veterans;
12.3 	(2) reintegrate combat veterans into society;
12.4 	(3) collaborate with other social service 
12.5 	agencies, educational institutions, and other 
12.6 	relevant community resources;
12.7 	(4) reduce homelessness among veterans; 
12.8 	and
12.9 	(5) provide measurable outcomes.
12.10 	The commissioner may provide incentives 
12.11 	to encourage, and may give priority to 
12.12 	proposals that foster, regional collaboration 
12.13 	for service delivery. The grants may be for a 
12.14 	term of up to two years. The commissioner 
12.15 	shall ensure that grants are made throughout 
12.16 	all regions of the state and shall develop a 
12.17 	description of best practices for the use of 
12.18 	these grants. A county may not reduce its 
12.19 	county veterans service officer budget by any 
12.20 	amount received as a grant under this section. 
12.21 	Grants made under this section are in addition 
12.22 	to and not subject to the requirements for 
12.23 	grants made under Minnesota Statutes, 
12.24 	section 197.608. The Minnesota Association 
12.25 	of County Veterans Service Officers may 
12.26 	apply for grants under this section beginning 
12.27 	July 1, 2007. Any balance remaining after 
12.28 	the first year does not cancel and is available 
12.29 	in the second year. This appropriation must 
12.30 	be included in the appropriation base through 
12.31 	fiscal year 2011.
12.32 	(h) $250,000 each year is added to the base 
12.33 	for grants to Disabled American Veterans, 
12.34 	Military Order of the Purple Heart, Veterans 
12.35 	of Foreign Wars, Vietnam Veterans of 
13.1 	America, and other congressionally chartered 
13.2 	veterans service organizations designated by 
13.3 	the commissioner.
13.4 	(i) $855,000 each year is from the account 
13.5 	in the special revenue fund established in 
13.6 	Minnesota Statutes, section 190.19, for (1) 
13.7 	grants to veterans service organizations; and 
13.8 	(2) outreach to underserved veterans. Any 
13.9 	balance in the first year does not cancel and 
13.10 	is available in the second year.

13.11	Sec. 19. GAMBLING CONTROL
 	$
	2,846,000
	$
	2,893,000
	
13.12 	These appropriations are from the lawful 
13.13 	gambling regulation account in the special 
13.14 	revenue fund.

13.15	Sec. 20. RACING COMMISSION
 	$
	1,130,000
	$
	899,000
	
13.16 	(a) These appropriations are from racing 
13.17 	regulation accounts in the special revenue 
13.18 	fund.
13.19 	(b) $295,000 the first year and $64,000 the 
13.20 	second year and thereafter are for information 
13.21 	technology improvements implemented in 
13.22 	consultation with the Office of Enterprise 
13.23 	Technology as part of the small agency 
13.24 	technology initiative.

13.25	Sec. 21. STATE LOTTERY
 					
13.26 	Notwithstanding Minnesota Statutes, section 
13.27 	349A.10, subdivision 3, the operating budget 
13.28 	must not exceed $27,378,000 in fiscal year 
13.29 	2008 and $28,141,000 in fiscal year 2009.

13.30	Sec. 22. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
13.31 	To be spent by the commissioner of finance.
14.1 	If the appropriation for either year is 
14.2 	insufficient, the appropriation for the other 
14.3 	year is available for it.

14.4
14.5	Sec. 23. MINNESOTA STATE RETIREMENT 
SYSTEM
 	$
	1,450,000
	$
	1,469,000
	
14.6 	(a) The amounts estimated to be needed for 
14.7 	each program are as follows:

14.8	(1) Legislators
		1,021,000
		1,034,000
	
14.9 	Under Minnesota Statutes, sections 3A.03, 
14.10 	subdivision 2, 3A.04, subdivisions 3 and 4; 
14.11 	and 3A.115.

14.12	(2) Constitutional Officers
		429,000
		435,000
	
14.13 	Under Minnesota Statutes, sections 
14.14 	352C.031, subdivision 5; 352C.04, 
14.15 	subdivision 3; and 352C.09, subdivision 2.
14.16 	(b) If an appropriation in this section for 
14.17 	either year is insufficient, the appropriation 
14.18 	for the other year is available for it.

14.19
14.20	Sec. 24. MINNEAPOLIS EMPLOYEES 
RETIREMENT FUND
 	$
	9,000,000
	$
	9,000,000
	
14.21 	The amounts estimated to be needed under 
14.22 	Minnesota Statutes, section 422A.101, 
14.23 	subdivision 3.

14.24
14.25	Sec. 25. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	15,800,000
	$
	15,800,000
	
14.26 	The amounts estimated to be needed are as 
14.27 	follows:

14.28
14.29
14.30
14.31	(a) Special direct state aid to first class city 
teachers retirement funds authorized under 
Minnesota Statutes, section 354A.12, subdivisions 
3a and 3c.
		13,300,000
		13,300,000

15.1
15.2
15.3
15.4	(b) Special direct state matching aid to 
Minneapolis Teachers Retirement Fund 
authorized under Minnesota Statutes, section 
354A.12, subdivision 3b.
		2,500,000
		2,500,000

15.5
15.6	Sec. 26. ST. PAUL TEACHERS 
RETIREMENT FUND
 	$
	2,967,000
	$
	2,967,000
	
15.7 	The amounts estimated to be needed for 
15.8 	special direct state aid to first class city 
15.9 	teachers retirement funds authorized under 
15.10 	Minnesota Statutes, section 354A.12, 
15.11 	subdivisions 3a and 3c.

15.12	Sec. 27. AMATEUR SPORTS COMMISSION
 	$
	210,000
	$
	215,000
	
15.13 	This appropriation is reduced by the amount 
15.14 	equal to proceeds from leasing state land 
15.15 	under Laws 2006, chapter 282, section 11.

15.16
15.17	Sec. 28. COUNCIL ON BLACK 
MINNESOTANS
 	$
	322,000
	$
	328,000
	
15.18 	$25,000 the first year and $25,000 the second 
15.19 	year are for expenses related to the state's 
15.20 	annual Martin Luther King, Jr. holiday 
15.21 	celebration.

15.22
15.23	Sec. 29. COUNCIL ON CHICANO/LATINO 
AFFAIRS
 	$
	306,000
	$
	310,000

15.24
15.25	Sec. 30. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	287,000
	$
	285,000

15.26	Sec. 31. INDIAN AFFAIRS COUNCIL
 	$
	481,000
	$
	487,000

15.27
15.28	Sec. 32. GENERAL CONTINGENT 
ACCOUNTS
 	$
	1,000,000
	$
	500,000

15.29	Appropriations by Fund
	
15.30		2008
	2009
	
15.31	General
	500,000
	-0-
	
16.1
16.2	State Government 
Special Revenue
	400,000
	400,000
	
16.3
16.4	Workers' 
Compensation
	100,000
	100,000
	
16.5 	(a) The appropriations in this section 
16.6 	may only be spent with the approval of 
16.7 	the governor after consultation with the 
16.8 	Legislative Advisory Commission pursuant 
16.9 	to Minnesota Statutes, section 3.30.
16.10 	(b) If an appropriation in this section for 
16.11 	either year is insufficient, the appropriation 
16.12 	for the other year is available for it.
16.13 	(c) If a contingent account appropriation 
16.14 	is made in one fiscal year, it should be 
16.15 	considered a biennial appropriation.

16.16 	ARTICLE 2
16.17 	STATE GOVERNMENT OPERATIONS

16.18 	Section 1. Minnesota Statutes 2006, section 3.987, subdivision 1, is amended to read:
16.19 		Subdivision 1.Local impact notes. The commissioner of finance shall coordinate 
16.20 	the development of a local impact note for any proposed legislation introduced after June 
16.21 	30, 1997, or any rule proposed after December 31, 1999, upon request of the chair or the 
16.22 	ranking minority member of either legislative Tax Committee. Upon receipt of a request 
16.23 	to prepare a local impact note, the commissioner must notify the authors of the proposed 
16.24 	legislation or, for an administrative rule, the head of the relevant executive agency or 
16.25 	department, that the request has been made. The local impact note must be made available 
16.26 	to the public upon request. If the action is among the exceptions listed in section 3.988, 
16.27 	a local impact note need not be requested nor prepared. The commissioner shall make 
16.28 	a reasonable and timely estimate of the local fiscal impact on each type of political 
16.29 	subdivision that would result from the proposed legislation. The commissioner of finance 
16.30 	may require any political subdivision or the commissioner of an administrative agency 
16.31 	of the state to supply in a timely manner any information determined to be necessary to 
16.32 	determine local fiscal impact. The political subdivision, its representative association, or 
16.33 	commissioner shall convey the requested information to the commissioner of finance with 
16.34 	a signed statement to the effect that the information is accurate and complete to the best 
16.35 	of its ability. The political subdivision, its representative association, or commissioner, 
17.1 	when requested, shall update its determination of local fiscal impact based on actual 
17.2 	cost or revenue figures, improved estimates, or both. Upon completion of the note, the 
17.3 	commissioner must provide a copy to the authors of the proposed legislation or, for an 
17.4 	administrative rule, to the head of the relevant executive agency or department. 

17.5 	Sec. 2. Minnesota Statutes 2006, section 3.988, subdivision 3, is amended to read:
17.6 		Subd. 3.Miscellaneous exceptions. A local impact note or an attachment as 
17.7 	provided in section 3.987, subdivision 2, need not be prepared for the cost of a mandated 
17.8 	action if the law, including a rulemaking, containing the mandate: 
17.9 	(1) accommodates a specific local request;
17.10 	(2) results in no new local government duties;
17.11 	(3) leads to revenue losses from exemptions to taxes;
17.12 	(4) provided only clarifying or conforming, nonsubstantive charges on local 
17.13 	government;
17.14 	(5) imposes additional net local costs that are minor (an amount less than or equal 
17.15 	to one-half of one percent of the local revenue base as defined in section 477A.011, 
17.16 	subdivision 27, or $50,000, whichever is less for any single local government if the 
17.17 	mandate does not apply statewide or less than $1,000,000 if the mandate is statewide); 
17.18 	(6) is a law or executive order enacted before July 1, 1997, or a rule initially 
17.19 	implementing a law enacted before July 1, 1997;
17.20 	(7) implements something other than a law or executive order, such as a federal, 
17.21 	court, or voter-approved mandate;
17.22 	(8) results in savings that equal or exceed costs;
17.23 	(9) requires the holding of elections;
17.24 	(10) ensures due process or equal protection;
17.25 	(11) provides for the notification and conduct of public meetings;
17.26 	(12) establishes the procedures for administrative and judicial review of actions 
17.27 	taken by political subdivisions;
17.28 	(13) protects the public from malfeasance, misfeasance, or nonfeasance by officials 
17.29 	of political subdivisions;
17.30 	(14) relates directly to financial administration, including the levy, assessment, 
17.31 	and collection of taxes;
17.32 	(15) relates directly to the preparation and submission of financial audits necessary 
17.33 	to the administration of state laws; or
17.34 	(16) requires uniform standards to apply to public and private institutions without 
17.35 	differentiation.

18.1 	Sec. 3. Minnesota Statutes 2006, section 3.989, subdivision 2, is amended to read:
18.2 		Subd. 2.Report Compilation of local impact notes. The commissioner of finance 
18.3 	shall prepare by September 1, 2000, and by September 1 of each even-numbered year 
18.4 	thereafter, a report compilation of the costs of keylocal mandates established after June 
18.5 	30, 1997 impact notes requested by the legislature during the previous biennial session 
18.6 	as provided in section 3.987. The commissioner may consult with local government 
18.7 	representatives and legislative fiscal staff to determine which local impact notes were key.
18.8 	The commissioner shall include the statewide total of the statement of costs of local 
18.9 	mandates after June 30, 1997, as a notation in the state biennial budget.

18.10 	Sec. 4. Minnesota Statutes 2006, section 3.989, subdivision 3, is amended to read:
18.11 		Subd. 3.Certain political subdivisions; report. The political subdivisions that 
18.12 	have opted to administer class B state mandates shall report to the commissioner of 
18.13 	finance by September 1, 1998, and by September 1 of each year thereafter, identifying 
18.14 	each instance when revenue for a class B state mandate has fallen below 85 percent of 
18.15 	the total cost of the program and the political subdivision intends to cease administration 
18.16 	of the program.
18.17 	The commissioner shall forward a copy of the report to the chairs of the appropriate 
18.18 	funding committees of the senate and the house for proposed inclusion of the shortfall as a 
18.19 	line item appropriation in the state budget for the next fiscal year.
18.20 	The political subdivision may exercise its option to cease administration only if the 
18.21 	legislature has failed to include the shortfall as an appropriation in the state budget for 
18.22 	the next fiscal year.

18.23 	Sec. 5. Minnesota Statutes 2006, section 15B.17, subdivision 1, is amended to read:
18.24 		Subdivision 1.Proposals. (a) Before a state agency or other public body develops, 
18.25 	to submit to the legislature and the governor, a budget proposal or plans for capital 
18.26 	improvements within the Capitol Area, it must consult with the board.
18.27 	(b) The public body must provide enough money for the board's review and planning 
18.28 	if the board decides its review and planning services are necessary.
18.29 	(c) Money received by the board from public agencies is appropriated to the board.

18.30 	Sec. 6. Minnesota Statutes 2006, section 16A.103, subdivision 2, is amended to read:
18.31 		Subd. 2.Local revenue. In February and November of each year, the commissioner 
18.32 	of revenue shall prepare and deliver to the governor and the legislature forecasts of 
18.33 	revenue to be received by school districts as a group, counties as a group, and the group of 
19.1 	cities and towns that have a population of more than 2,500. The forecasts must assume 
19.2 	the continuation of current laws, projections of valuation changes in real property, and 
19.3 	reasonable estimates of projected growth in the national and state economies and affected 
19.4 	populations. Revenue must be estimated for property taxes, state and federal aids, local 
19.5 	sales taxes, if any, and a single projection for all other revenue for each group of affected 
19.6 	local governmental units. As part of the February forecast, the commissioner of revenue 
19.7 	shall report to the governor and legislature on which groups of local government units 
19.8 	exceeded the revenue targets of the governor and legislature in the most recent biennium.

19.9 	Sec. 7. Minnesota Statutes 2006, section 16A.1286, subdivision 2, is amended to read:
19.10 		Subd. 2.Billing procedures. The commissioner may bill up to $7,520,000 in 
19.11 	each fiscal year for statewide systems services provided to state agencies, judicial branch 
19.12 	agencies, the University of Minnesota, the Minnesota State Colleges and Universities, 
19.13 	and other entities. Billing must be based only on usage of services relating to statewide 
19.14 	systems provided by the Intertechnologies Division. Each agency shall transfer from 
19.15 	agency operating appropriations to the statewide systems account the amount billed by 
19.16 	the commissioner. Billing policies and procedures related to statewide systems services 
19.17 	must be developed by the commissioner in consultation with the commissioners of 
19.18 	employee relations and administration, the University of Minnesota, and the Minnesota 
19.19 	State Colleges and Universities.

19.20 	Sec. 8. Minnesota Statutes 2006, section 16A.28, subdivision 1, is amended to read:
19.21 		Subdivision 1.Carryforward. Agencies may carry forward unexpended and 
19.22 	unencumbered nongrant operating balances from the first year of a biennium into the 
19.23 	second year of the biennium. At the end of the second year of the biennium, any remaining 
19.24 	nongrant operating balances may be transferred, with the approval of the commissioner of 
19.25 	finance, to a special revenue account. Funds in those accounts are appropriated for onetime 
19.26 	costs associated with technology infrastructure and systems development projects.
19.27 	(a) Transfers to those special revenue accounts shall be reported to the chairs 
19.28 	and ranking members of the Senate Finance and House Ways and Means and Finance 
19.29 	committees.
19.30 	(b) When such balances originate in nongeneral funds, the transfers shall be made to 
19.31 	separate accounts with the same funds and may only be used to support projects relevant 
19.32 	to the original funding source.
20.1 	(c) Uses of those special revenue account funds shall be reported annually by each 
20.2 	agency to the commissioner of finance, and to the chairs and ranking members of the 
20.3 	Senate Finance and House Ways and Means and Finance committees.

20.4 	Sec. 9. Minnesota Statutes 2006, section 270B.14, is amended by adding a subdivision 
20.5 	to read:
20.6 		Subd. 19.Disclosure to Department of Finance. The commissioner may disclose 
20.7 	to the commissioner of finance returns or return information necessary in order to prepare 
20.8 	a revenue forecast under section 16A.103.