1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             the general legislative and administrative expenses of 
  1.4             state government and economic development; modifying 
  1.5             provisions related to state and local government 
  1.6             operations; modifying certain fee and revenue 
  1.7             provisions; requiring certain contractor bonding; 
  1.8             requiring licensure of certain gambling equipment 
  1.9             sales persons; modifying provisions of various state 
  1.10            boards and commissions; modifying certain insurance 
  1.11            provisions; modifying certain cosmetology provisions; 
  1.12            modifying certain lawful gambling provisions; 
  1.13            requiring studies; amending Minnesota Statutes 2002, 
  1.14            sections 3.885, subdivision 1; 3.971, subdivision 2; 
  1.15            6.48; 6.49; 6.54; 6.55; 6.64; 6.65; 6.66; 6.67; 6.68, 
  1.16            subdivision 1; 6.70; 6.71; 6.74; 8.06; 10A.01, 
  1.17            subdivision 21; 10A.02, by adding a subdivision; 
  1.18            10A.025, subdivision 2; 10A.03, subdivision 1; 10A.04, 
  1.19            subdivisions 1, 2, 4, 5, 6, by adding a subdivision; 
  1.20            10A.34, subdivision 1a; 14.091; 14.48, by adding a 
  1.21            subdivision; 16A.102, subdivision 1; 16A.11, 
  1.22            subdivision 3; 16A.1285, subdivision 3; 16A.151, 
  1.23            subdivision 5; 16A.17, by adding a subdivision; 
  1.24            16A.40; 16A.501; 16A.642, subdivision 1; 16B.24, 
  1.25            subdivision 5; 16B.35, subdivision 1; 16B.465, 
  1.26            subdivisions 1a, 7; 16B.47; 16B.48, subdivision 2; 
  1.27            16C.02, subdivision 6; 16C.03, by adding a 
  1.28            subdivision; 16C.05, subdivision 2, by adding a 
  1.29            subdivision; 16C.06, subdivision 1; 16C.08, 
  1.30            subdivisions 2, 3, 4, by adding a subdivision; 16C.10, 
  1.31            subdivision 7; 16D.08, subdivision 2; 16E.01, 
  1.32            subdivision 3; 16E.07, subdivision 9; 43A.17, 
  1.33            subdivision 9; 69.772, subdivision 2; 115A.929; 
  1.34            116J.8771; 197.608; 237.49; 237.52, subdivision 3; 
  1.35            237.701, subdivision 1; 240.03; 240.10; 240.15, 
  1.36            subdivision 6; 240.155, subdivision 1; 240A.03, 
  1.37            subdivision 10; 240A.04; 240A.06, subdivision 1; 
  1.38            256B.435, subdivision 2a; 268.186; 270.052; 270.44; 
  1.39            270A.07, subdivision 1; 289A.08, subdivision 16; 
  1.40            306.95; 349.12, subdivision 25, by adding a 
  1.41            subdivision; 349.151, subdivisions 4, 4b; 349.155, 
  1.42            subdivision 3; 349.16, subdivision 6; 349.161, 
  1.43            subdivisions 1, 4, 5; 349.162, subdivision 1; 349.163, 
  1.44            subdivisions 2, 6; 349.164, subdivision 4; 349.165, 
  1.45            subdivision 3; 349.166, subdivisions 1, 2; 349A.08, 
  1.46            subdivision 5; 403.02, subdivision 10; 403.06; 403.07, 
  2.1             subdivisions 1, 2, 3; 403.09, subdivision 1; 403.11; 
  2.2             403.113; 458D.17, subdivision 5; 471.696; 471.999; 
  2.3             473.891, subdivision 10, by adding a subdivision; 
  2.4             473.898, subdivisions 1, 3; 473.901; 473.902, by 
  2.5             adding a subdivision; 473.907, subdivision 1; 
  2.6             477A.014, subdivision 4; Laws 1998, chapter 366, 
  2.7             section 80, as amended; Laws 2002, chapter 331, 
  2.8             section 19; proposing coding for new law in Minnesota 
  2.9             Statutes, chapters 3A; 6; 16C; 43A; 60A; 326; 349; 
  2.10            repealing Minnesota Statutes 2002, sections 3.305, 
  2.11            subdivision 5; 3.971, subdivision 8; 3A.11; 4A.055; 
  2.12            6.77; 12.221, subdivision 5; 16A.87; 16B.50; 16C.07; 
  2.13            16E.09; 149A.97, subdivision 8; 155A.03, subdivisions 
  2.14            14, 15; 155A.07, subdivision 9; 163.10; 306.97; 
  2.15            Minnesota Rules, part 1950.1070. 
  2.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.17                             ARTICLE 1
  2.18                  STATE GOVERNMENT APPROPRIATIONS
  2.19  Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
  2.20     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.21  appropriated from the general fund, or another fund named, to 
  2.22  the agencies and for the purposes specified in this act, to be 
  2.23  available for the fiscal years indicated for each purpose.  The 
  2.24  figures "2003," "2004," and "2005," where used in this act, mean 
  2.25  that the appropriation or appropriations listed under them are 
  2.26  available for the year ending June 30, 2003, June 30, 2004, or 
  2.27  June 30, 2005, respectively.  
  2.28                          SUMMARY BY FUND
  2.29                            2004          2005           TOTAL
  2.30  General            $  264,857,000 $  267,568,000 $  532,425,000
  2.31  For 2003 - $369,000
  2.32  Health Care 
  2.33  Access                  1,782,000      1,782,000      3,564,000
  2.34  State Government 
  2.35  Special Revenue        25,024,000     31,629,000     56,653,000
  2.36  Environmental             520,000        436,000        956,000
  2.37  Remediation               484,000        484,000        968,000
  2.38  Special Revenue         2,947,000      2,947,000      5,894,000
  2.39  Highway User Tax 
  2.40  Distribution            2,097,000      2,097,000      4,194,000
  2.41  Workers' 
  2.42  Compensation            7,286,000      7,349,000     14,635,000
  2.43  TOTAL              $  304,997,000 $  314,292,000 $  619,289,000
  2.44                                             APPROPRIATIONS 
  2.45                                         Available for the Year 
  2.46                                             Ending June 30 
  3.1                                             2004         2005 
  3.2   Sec. 2.  LEGISLATURE 
  3.3   Subdivision 1.  Total  
  3.4   Appropriation                        $58,328,000    $58,328,000
  3.5                 Summary by Fund
  3.6   General              58,200,000    58,200,000
  3.7   Health Care Access      128,000       128,000
  3.8   The amounts that may be spent from this 
  3.9   appropriation for each program are 
  3.10  specified in the following subdivisions.
  3.11  Subd. 2.  Senate 
  3.12       19,319,000    19,319,000
  3.13  Subd. 3.  House of Representatives 
  3.14       25,993,000    25,993,000 
  3.15  Subd. 4.  Legislative 
  3.16  Coordinating Commission    
  3.17       13,016,000    13,016,000
  3.18                Summary by Fund
  3.19  General              12,888,000    12,888,000
  3.20  Health Care Access      128,000       128,000
  3.21  $5,023,000 the first year and 
  3.22  $5,023,000 the second year are for the 
  3.23  office of the revisor of statutes. 
  3.24  $1,086,000 the first year and 
  3.25  $1,086,000 the second year are for the 
  3.26  legislative reference library. 
  3.27  $4,623,000 the first year and 
  3.28  $4,623,000 the second year are for the 
  3.29  office of the legislative auditor. 
  3.30  $360,000 the first year and $360,000 
  3.31  the second year are for public 
  3.32  information television, Internet, 
  3.33  Intranet, and other transmission of 
  3.34  legislative activities.  At least 
  3.35  one-half must go for programming to be 
  3.36  broadcast and transmitted to rural 
  3.37  Minnesota. 
  3.38  During the biennium ending June 30, 
  3.39  2005, the legislative coordinating 
  3.40  commission, the office of the 
  3.41  legislative auditor, and the office of 
  3.42  the revisor of statutes are not subject 
  3.43  to the limitations in uses of funds 
  3.44  provided under Minnesota Statutes, 
  3.45  section 16A.281. 
  3.46  During the biennium ending June 30, 
  3.47  2005, a legislative commission or 
  3.48  subcommittee of the legislative 
  3.49  coordinating commission may by 
  3.50  resolution adopt per diem payments for 
  4.1   members attending commission meetings 
  4.2   that are less than the payments 
  4.3   permitted by rules of the house of 
  4.4   representatives and the senate. 
  4.5   (a) If the legislative coordinating 
  4.6   commission requires employees under its 
  4.7   jurisdiction to take temporary leave 
  4.8   without pay during the biennium ending 
  4.9   June 30, 2005, the first 80 hours of 
  4.10  leave without pay in fiscal year 2004 
  4.11  and the first 80 hours of leave without 
  4.12  pay in fiscal year 2005 are governed by 
  4.13  this paragraph.  The commission must 
  4.14  permit employees taking this leave to 
  4.15  continue accruing vacation and sick 
  4.16  leave, be eligible for paid holidays 
  4.17  and insurance benefits, accrue 
  4.18  seniority, and accrue service credit 
  4.19  and credited salary in state retirement 
  4.20  plans permitting service credits for 
  4.21  authorized leaves of absence as if the 
  4.22  employee had actually been employed 
  4.23  during the time of the leave.  The 
  4.24  commission may make the employer 
  4.25  contribution to the employee's 
  4.26  retirement plan if the employee 
  4.27  participates in a defined contribution 
  4.28  plan.  If the leave without pay is for 
  4.29  one full pay period or longer, any 
  4.30  holiday pay must be included in the 
  4.31  first payroll warrant after return from 
  4.32  the leave.  Managers must attempt to 
  4.33  schedule leaves to meet the needs of 
  4.34  employees and the need to continue 
  4.35  efficient operation of their offices. 
  4.36  (b) Notwithstanding Minnesota Statutes, 
  4.37  section 43A.18, subdivisions 2 and 3, 
  4.38  the legislative coordinating commission 
  4.39  may require employees in the office of 
  4.40  the legislative auditor whose terms and 
  4.41  conditions of employment are determined 
  4.42  through the commissioner and managerial 
  4.43  compensation plans to take leave 
  4.44  without pay as described in paragraph 
  4.45  (a). 
  4.46  Sec. 3.  GOVERNOR AND 
  4.47  LIEUTENANT GOVERNOR                    3,586,000      3,586,000
  4.48  This appropriation is to fund the 
  4.49  offices of the governor and lieutenant 
  4.50  governor.  
  4.51  $19,000 the first year and $19,000 the 
  4.52  second year are for necessary expenses 
  4.53  in the normal performance of the 
  4.54  governor's and lieutenant governor's 
  4.55  duties for which no other reimbursement 
  4.56  is provided. 
  4.57  By September 1 of each year, the 
  4.58  commissioner of finance shall report to 
  4.59  the chairs of the senate governmental 
  4.60  operations budget division and the 
  4.61  house state government finance division 
  4.62  any personnel costs incurred by the 
  4.63  office of the governor and lieutenant 
  4.64  governor that were supported by 
  4.65  appropriations to other agencies during 
  5.1   the previous fiscal year.  The office 
  5.2   of the governor shall inform the chairs 
  5.3   of the divisions before initiating any 
  5.4   interagency agreements. 
  5.5   Sec. 4.  STATE AUDITOR                 8,306,000      8,306,000
  5.6   Sec. 5.  ATTORNEY GENERAL             24,800,000     24,779,000
  5.7                 Summary by Fund
  5.8   General              22,559,000    22,559,000
  5.9   State Government
  5.10  Special Revenue       1,612,000     1,591,000
  5.11  Environmental           145,000       145,000 
  5.12  Remediation             484,000       484,000 
  5.13  Sec. 6.  SECRETARY OF STATE            5,912,000      6,032,000
  5.14  For 2003 - $369,000 
  5.15  $369,000 is appropriated in fiscal year 
  5.16  2003 from the general fund to the 
  5.17  secretary of state for payment of the 
  5.18  attorney fees awarded by court order in 
  5.19  Zachman et al. vs. Kiffmeyer et al.  
  5.20  This is a onetime appropriation and not 
  5.21  added to the secretary of state's base 
  5.22  budget. 
  5.23  Sec. 7.  CAMPAIGN FINANCE AND 
  5.24  PUBLIC DISCLOSURE BOARD                  712,000        712,000
  5.25  Sec. 8.  INVESTMENT BOARD              2,167,000      2,167,000
  5.26  Sec. 9.  ADMINISTRATIVE HEARINGS       7,186,000      7,249,000
  5.27  This appropriation is from the workers' 
  5.28  compensation fund. 
  5.29  Fee rates charged during fiscal years 
  5.30  2004 and 2005 by the Administrative Law 
  5.31  Division of the Office of 
  5.32  Administrative Hearings must be reduced 
  5.33  by ten percent from fiscal year 2003 
  5.34  levels. 
  5.35  Sec. 10.  OFFICE OF STRATEGIC 
  5.36  AND LONG-RANGE PLANNING                3,314,000      3,314,000
  5.37  $50,000 the first year and $50,000 the 
  5.38  second year are for a grant to the 
  5.39  Northern Counties Land Use Coordinating 
  5.40  Board for purposes of the pilot project 
  5.41  established in Laws 2002, chapter 373, 
  5.42  section 33.  The pilot project is 
  5.43  extended until June 30, 2005.  This is 
  5.44  a onetime appropriation. 
  5.45  Sec. 11.  ADMINISTRATION 
  5.46  Subdivision 1.  Total 
  5.47  Appropriation                         21,422,000     20,922,000
  5.48  The amounts that may be spent from this 
  5.49  appropriation for each program are 
  5.50  specified in the following subdivisions.
  6.1   Subd. 2.  Operations Management 
  6.2        2,669,000      2,669,000
  6.3   The commissioner of administration, in 
  6.4   consultation with heads of other 
  6.5   executive agencies, must identify state 
  6.6   agency:  (1) telecommunication device 
  6.7   usage; and (2) vehicle usage, that is 
  6.8   not cost-efficient.  The commissioner 
  6.9   must implement policies to reduce usage 
  6.10  that is found not to be 
  6.11  cost-efficient.  The commissioner must 
  6.12  report to the legislature by January 
  6.13  15, 2004, on implementation of this 
  6.14  section, including savings achieved by 
  6.15  eliminating usage that is not 
  6.16  cost-efficient. 
  6.17  Subd. 3.  Office of Technology
  6.18       2,479,000      2,479,000
  6.19  Subd. 4.  Facilities Management
  6.20       11,541,000    11,041,000
  6.21  $7,888,000 the first year and 
  6.22  $7,888,000 the second year are for 
  6.23  office space costs of the legislature 
  6.24  and veterans organizations, for 
  6.25  ceremonial space, and for statutorily 
  6.26  free space. 
  6.27  $500,000 the first year is for onetime 
  6.28  funding of agency relocation expenses.  
  6.29  $2,050,000 in the first year and 
  6.30  $2,050,000 in the second year of the 
  6.31  balance in the facility repair and 
  6.32  replacement account in the state 
  6.33  government special revenue fund is 
  6.34  canceled to the general fund.  This 
  6.35  amount is in addition to amounts 
  6.36  transferred under Minnesota Statutes, 
  6.37  section 16B.24, subdivision 5. 
  6.38  Subd. 5.  Management Services
  6.39       2,830,000      2,830,000 
  6.40  $196,000 the first year and $196,000 
  6.41  the second year are for the office of 
  6.42  the state archaeologist. 
  6.43  $74,000 the first year and $74,000 the 
  6.44  second year are for the developmental 
  6.45  disabilities council. 
  6.46  Subd. 6.  Public Broadcasting
  6.47        1,903,000     1,903,000
  6.48  $1,175,000 the first year and 
  6.49  $1,175,000 the second year are for 
  6.50  matching grants for public television.  
  6.51  $203,000 the first year and $203,000 
  6.52  the second year are for public 
  6.53  television equipment grants.  
  7.1   Equipment or matching grant allocations 
  7.2   shall be made after considering the 
  7.3   recommendations of the Minnesota public 
  7.4   television association. 
  7.5   $17,000 the first year and $17,000 the 
  7.6   second year are for grants to the Twin 
  7.7   Cities regional cable channel. 
  7.8   $313,000 the first year and $313,000 
  7.9   the second year are for community 
  7.10  service grants to public educational 
  7.11  radio stations.  The grants must be 
  7.12  allocated after considering the 
  7.13  recommendations of the association of 
  7.14  Minnesota public educational radio 
  7.15  stations under Minnesota Statutes, 
  7.16  section 129D.14. 
  7.17  $195,000 the first year and $195,000 
  7.18  the second year are for equipment 
  7.19  grants to Minnesota Public Radio, Inc. 
  7.20  Any unencumbered balance remaining the 
  7.21  first year for grants to public 
  7.22  television or radio stations does not 
  7.23  cancel and is available for the second 
  7.24  year. 
  7.25  Sec. 12.  CAPITOL AREA ARCHITECTURAL 
  7.26  AND PLANNING BOARD                       262,000        262,000
  7.27  During the biennium ending June 30, 
  7.28  2005, money received by the board from 
  7.29  public agencies, as provided by 
  7.30  Minnesota Statutes, section 15.50, 
  7.31  subdivision 40, is appropriated to the 
  7.32  board. 
  7.33  Sec. 13.  FINANCE 
  7.34  Subdivision 1.  Total 
  7.35  Appropriation                         15,216,000     15,216,000
  7.36  The amounts that may be spent from this 
  7.37  appropriation for each program are 
  7.38  specified in the following subdivisions.
  7.39  Subd. 2.  State Financial Management 
  7.40       8,711,000      8,711,000
  7.41  Subd. 3.  Information and 
  7.42  Management Services 
  7.43       6,505,000      6,505,000
  7.44  Sec. 14.  EMPLOYEE RELATIONS 
  7.45  Subdivision 1.  Total 
  7.46  Appropriation                          6,188,000      6,188,000
  7.47  The amounts that may be spent from this 
  7.48  appropriation for each program are 
  7.49  specified in the following subdivisions.
  7.50  Subd. 2.  Employee Insurance
  7.51          63,000         63,000
  7.52  Subd. 3.  Human Resources Management
  8.1        6,125,000      6,125,000
  8.2   The commissioner of employee relations 
  8.3   shall convene a work group to study the 
  8.4   structure of current human resources 
  8.5   processes and responsibilities related 
  8.6   to technology systems.  The study 
  8.7   should include:  
  8.8   (1) an analysis of the current division 
  8.9   of labor for completing standard human 
  8.10  resource electronic transactions; 
  8.11  (2) opportunities for improvements to 
  8.12  the current structure that will create 
  8.13  more effective and efficient methods of 
  8.14  operation; 
  8.15  (3) the recommended course of action to 
  8.16  maximize the use of statewide systems 
  8.17  and resources; and 
  8.18  (4) a plan to address any fiscal impact 
  8.19  necessitated by the proposed plan. 
  8.20  The commissioner must provide a report 
  8.21  of findings to the chairs of the house 
  8.22  state government finance committee and 
  8.23  senate state government budget division 
  8.24  by January 19, 2004. 
  8.25  Subd. 4.  Insurance Contingency Reserve                        
  8.26  By June 30, 2005, the commissioner of 
  8.27  finance shall transfer $23,000,000 of 
  8.28  the contingency reserve within the 
  8.29  employee insurance trust fund 
  8.30  maintained under Minnesota Statutes, 
  8.31  section 43A.30, subdivision 6, to the 
  8.32  general fund. 
  8.33  Sec. 15.  REVENUE 
  8.34  Subdivision 1.  Total  
  8.35  Appropriation                         93,442,000     97,596,000
  8.36                Summary by Fund
  8.37  General              89,316,000    93,554,000
  8.38  Health Care Access    1,654,000     1,654,000
  8.39  Highway User 
  8.40  Tax Distribution      2,097,000     2,097,000
  8.41  Environmental           375,000       291,000
  8.42  The amounts that may be spent from this 
  8.43  appropriation for each program are 
  8.44  specified in the following subdivisions.
  8.45  Subd. 2.  Tax System Management
  8.46      78,842,000     81,872,000
  8.47                Summary by Fund
  8.48  General              74,716,000    77,830,000
  8.49  Health Care Access    1,654,000     1,654,000
  9.1   Highway User 
  9.2   Tax Distribution      2,097,000     2,097,000
  9.3   Environmental           375,000       291,000
  9.4   $2,742,000 the first year and 
  9.5   $5,856,000 the second year are for 
  9.6   additional activities to identify and 
  9.7   collect tax liabilities from 
  9.8   individuals and businesses that 
  9.9   currently do not pay all taxes owed.  
  9.10  This initiative is expected to result 
  9.11  in new general fund revenues of 
  9.12  $59,838,000 for the biennium ending 
  9.13  June 30, 2005. 
  9.14  The department must report to the 
  9.15  chairs of the house ways and means and 
  9.16  senate finance committees by March 1, 
  9.17  2004, and January 15, 2005, on the 
  9.18  following performance indicators: 
  9.19  (1) the number of corporations 
  9.20  noncompliant with the corporate tax 
  9.21  system each year and the percentage and 
  9.22  dollar amounts of valid tax liabilities 
  9.23  collected; 
  9.24  (2) the number of businesses 
  9.25  noncompliant with the sales and use tax 
  9.26  system and the percentage and dollar 
  9.27  amounts of the valid tax liabilities 
  9.28  collected; and 
  9.29  (3) the number of individual 
  9.30  noncompliant cases resolved and the 
  9.31  percentage and dollar amounts of valid 
  9.32  tax liabilities collected. 
  9.33  The reports must also identify base 
  9.34  level expenditures and staff positions 
  9.35  related to compliance and audit 
  9.36  activities, including baseline 
  9.37  information as of January 1, 2002.  The 
  9.38  information must be provided at the 
  9.39  budget activity level. 
  9.40  $30,000 from the general fund the first 
  9.41  year and $30,000 from the general fund 
  9.42  the second year are for the preparation 
  9.43  of the income tax sample. 
  9.44  Subd. 3.  Accounts Receivable Management
  9.45      14,600,000     15,724,000
  9.46  $1,558,000 the first year and 
  9.47  $2,682,000 the second year are for 
  9.48  additional activities to identify and 
  9.49  collect tax liabilities from 
  9.50  individuals and businesses that 
  9.51  currently do not pay all taxes owed. 
  9.52  Sec. 16.  MILITARY AFFAIRS  
  9.53  Subdivision 1.  Total 
  9.54  Appropriation                         12,279,000     12,279,000
  9.55  The amounts that may be spent from this 
  9.56  appropriation for each program are 
  9.57  specified in the following subdivisions.
 10.1   Subd. 2.  Maintenance of Training 
 10.2   Facilities 
 10.3         5,590,000      5,590,000 
 10.4   Subd. 3.  General Support
 10.5         1,757,000      1,757,000 
 10.6   Subd. 4.  Enlistment Incentives
 10.7         4,857,000      4,857,000 
 10.8   If appropriations for either year of 
 10.9   the biennium are insufficient, the 
 10.10  appropriation from the other year is 
 10.11  available.  The appropriations for 
 10.12  enlistment incentives are available 
 10.13  until expended. 
 10.14  $500,000 of the appropriation in Laws 
 10.15  2001, First Special Session chapter 10, 
 10.16  article 1, section 17, subdivision 4, 
 10.17  for enlistment incentives is canceled 
 10.18  to the general fund. 
 10.19  Subd. 5.  Emergency Services 
 10.20          75,000         75,000
 10.21  These appropriations are for expenses 
 10.22  of military forces ordered to active 
 10.23  duty under Minnesota Statutes, chapter 
 10.24  192.  If the appropriation for either 
 10.25  year is insufficient, the appropriation 
 10.26  for the other year is available for it. 
 10.27  Sec. 17.  VETERANS AFFAIRS             4,188,000      4,138,000
 10.28  $186,000 of the appropriation in Laws 
 10.29  1997, chapter 202, article 1, section 
 10.30  19, and Laws 1999, chapter 250, article 
 10.31  1, section 18, for the Gulf War bonus 
 10.32  program is canceled to the general fund.
 10.33  $10,000 of the appropriation in Laws 
 10.34  1997, chapter 202, article 1, section 
 10.35  19, for the Park Rapids veterans 
 10.36  memorial is canceled to the general 
 10.37  fund. 
 10.38  $200,000 the first year and $150,000 
 10.39  the second year are for grants to 
 10.40  Vinland Center.  This is a onetime 
 10.41  appropriation and does not become part 
 10.42  of the base. 
 10.43  Sec. 18.  VETERANS OF FOREIGN 
 10.44  WARS                                      55,000         55,000
 10.45  For carrying out the provisions of Laws 
 10.46  1945, chapter 455. 
 10.47  Sec. 19.  MILITARY ORDER OF 
 10.48  THE PURPLE HEART                          20,000         20,000
 10.49  Sec. 20.  DISABLED AMERICAN VETERANS      13,000         13,000
 10.50  For carrying out the provisions of Laws 
 10.51  1941, chapter 425. 
 11.1   Sec. 21.  GAMBLING CONTROL             2,728,000      2,526,000
 11.2                 Summary by Fund
 11.3   General                 202,000        -0-   
 11.4   Special Revenue       2,526,000     2,526,000
 11.5   The general fund appropriation in 
 11.6   fiscal year 2004 is intended to assist 
 11.7   with the transition to fee-based 
 11.8   funding.  The commissioner of finance 
 11.9   must approve the use of this onetime 
 11.10  appropriation and must require that it 
 11.11  be reimbursed to the general fund if 
 11.12  sufficient resources are available in 
 11.13  the special revenue fund. 
 11.14  The special revenue fund appropriation 
 11.15  is made from the lawful gambling 
 11.16  regulation account. 
 11.17  Sec. 22.  RACING COMMISSION              525,000        421,000
 11.18                Summary by Fund
 11.19  General                 104,000       -0-    
 11.20  Special Revenue         421,000       421,000
 11.21  The general fund appropriation in 
 11.22  fiscal year 2004 is intended to assist 
 11.23  with the transition to fee-based 
 11.24  funding.  The commissioner of finance 
 11.25  must approve the use of this onetime 
 11.26  appropriation and must require that it 
 11.27  be reimbursed to the general fund from 
 11.28  the special revenue fund. 
 11.29  The special revenue fund appropriation 
 11.30  is made from the racing and card 
 11.31  playing regulation account. 
 11.32  Sec. 23.  STATE LOTTERY
 11.33  Notwithstanding Minnesota Statutes, 
 11.34  section 349A.10, the operating budget 
 11.35  must not exceed $43,538,000 in fiscal 
 11.36  year 2004 and $43,538,000 in fiscal 
 11.37  year 2005 and thereafter.  The savings 
 11.38  must be transferred 60 percent to the 
 11.39  general fund in the state treasury and 
 11.40  40 percent to the Minnesota environment 
 11.41  and natural resources trust fund in the 
 11.42  state treasury. 
 11.43  Sec. 24.  AMATEUR SPORTS
 11.44  COMMISSION                               525,000        525,000 
 11.45  $225,000 the first year and $225,000 
 11.46  the second year may only be spent up to 
 11.47  the amount of offsetting fee revenue 
 11.48  generated by the commission under 
 11.49  Minnesota Statutes, section 240A.03. 
 11.50  Sec. 25.  TORT CLAIMS                    161,000        161,000
 11.51  To be spent by the commissioner of 
 11.52  finance.  
 11.53  If the appropriation for either year is 
 12.1   insufficient, the appropriation for the 
 12.2   other year is available for it.  
 12.3   Sec. 26.  MINNESOTA STATE   
 12.4   RETIREMENT SYSTEM                      2,518,000      2,727,000
 12.5   The amounts estimated to be needed for 
 12.6   each program are as follows: 
 12.7   (a) Legislators 
 12.8        2,150,000      2,300,000
 12.9   Under Minnesota Statutes, sections 
 12.10  3A.03, subdivision 2; 3A.04, 
 12.11  subdivisions 3 and 4; and 3A.11. 
 12.12  (b) Constitutional Officers 
 12.13         368,000        427,000
 12.14  Under Minnesota Statutes, sections 
 12.15  352C.031, subdivision 5; 352C.04, 
 12.16  subdivision 3; and 352C.09, subdivision 
 12.17  2. 
 12.18  If an appropriation in this section for 
 12.19  either year is insufficient, the 
 12.20  appropriation for the other year is 
 12.21  available for it. 
 12.22  Sec. 27.  MINNEAPOLIS EMPLOYEES
 12.23  RETIREMENT FUND                        6,632,000      6,632,000 
 12.24  Sec. 28.  GENERAL CONTINGENT 
 12.25  ACCOUNTS                               1,500,000        500,000
 12.26                Summary by Fund
 12.27  General               1,000,000       -0-    
 12.28  State Government
 12.29  Special Revenue         400,000       400,000
 12.30  Workers'
 12.31  Compensation            100,000       100,000
 12.32  The appropriations in this section may 
 12.33  only be spent with the approval of the 
 12.34  governor after consultation with the 
 12.35  legislative advisory commission 
 12.36  pursuant to Minnesota Statutes, section 
 12.37  3.30. 
 12.38  If an appropriation in this section for 
 12.39  either year is insufficient, the 
 12.40  appropriation for the other year is 
 12.41  available for it.  
 12.42   Sec. 29.  PUBLIC SAFETY               23,012,000     29,640,000
 12.43  This appropriation is from the state 
 12.44  government special revenue fund for 911 
 12.45  emergency telecommunications services. 
 12.46  (a) Public Safety Answering Points 
 12.47       6,970,000      8,522,000
 12.48  To be distributed as provided in 
 12.49  Minnesota Statutes, section 403.113, 
 13.1   subdivision 2. 
 13.2   This appropriation may only be used for 
 13.3   public safety answering points that 
 13.4   have implemented enhanced 911 service 
 13.5   or whose governmental agency has made a 
 13.6   binding commitment to the commissioner 
 13.7   of public safety to implement enhanced 
 13.8   911 service by January 1, 2008.  
 13.9   (b) Consolidation and Minimum Standards 
 13.10  Study 
 13.11         150,000          -0-  
 13.12  The public safety radio communication 
 13.13  system planning committee shall study 
 13.14  and make recommendations on the 
 13.15  feasibility of consolidating public 
 13.16  safety answering points.  In making 
 13.17  recommendations, the planning committee 
 13.18  must consider a cost-benefit analysis 
 13.19  of consolidations, the impact on public 
 13.20  safety, interoperability issues, and 
 13.21  best practices models.  
 13.22  In addition, the planning committee 
 13.23  shall recommend minimum standards for 
 13.24  public safety answering points and 
 13.25  recommend possible funding incentives 
 13.26  for consolidation.  The planning 
 13.27  committee shall report its findings to 
 13.28  the chairs of the senate crime 
 13.29  prevention and public safety committee, 
 13.30  the senate state government budget 
 13.31  division, and the house judiciary 
 13.32  policy and finance committee by January 
 13.33  15, 2004. 
 13.34     Sec. 30.  [GENERAL REDUCTION.] 
 13.35     The commissioner of finance shall reduce general fund 
 13.36  appropriations to executive branch state agencies for state 
 13.37  agency operations in the biennium ending June 30, 2005, by 
 13.38  $17,581,000.  The reduction to the Minnesota state colleges and 
 13.39  universities must not be more than $2,500,000.  The reductions 
 13.40  to state constitutional officers must be the same percentage of 
 13.41  each officer's general fund appropriation. 
 13.42     Sec. 31.  [SALE OF STATE LAND.] 
 13.43     Subdivision 1.  [STATE LAND SALES.] The commissioner of 
 13.44  administration shall coordinate with the head of each department 
 13.45  or agency having control of state-owned land to identify and 
 13.46  sell at least $5,505,000 of state-owned land.  Sales should be 
 13.47  completed according to law and as provided in this section as 
 13.48  soon as practicable but no later than June 30, 2005.  
 13.49  Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, or 
 14.1   any other law to the contrary, the commissioner may offer land 
 14.2   for public sale by only providing notice of lands or an offer of 
 14.3   sale of lands to state departments or agencies, the University 
 14.4   of Minnesota, cities, counties, towns, school districts, or 
 14.5   other public entities. 
 14.6      Subd. 2.  [ANTICIPATED SAVINGS.] Notwithstanding Minnesota 
 14.7   Statutes, section 94.16, subdivision 3, or other law to the 
 14.8   contrary, the amount of the proceeds from the sale of land under 
 14.9   this section that exceeds the actual expenses of selling the 
 14.10  land must be deposited in the general fund, except as otherwise 
 14.11  provided by the commissioner of finance.  Notwithstanding 
 14.12  Minnesota Statutes, section 94.11, the commissioner of finance 
 14.13  may establish the timing of payments for land purchased under 
 14.14  this section.  If the total of all money deposited into the 
 14.15  general fund from the proceeds of the sale of land under this 
 14.16  section is anticipated to be less than $5,505,000, the governor 
 14.17  must allocate the amount of the difference as reductions to 
 14.18  general fund operating expenditures for other executive agencies 
 14.19  for the biennium ending June 30, 2005. 
 14.20     Subd. 3.  [STATE LAND SALES FOR CONSIDERATION.] Based on 
 14.21  the inventory of state-owned land under Laws 2002, chapter 393, 
 14.22  section 36, the commissioner of administration with the 
 14.23  cooperation of the responsible agency head may consider the 
 14.24  following for sale under this section: 
 14.25     (1) the BCA property at 1246 University Avenue in St. Paul 
 14.26  with a public use classification of "to be determined"; and 
 14.27     (2) other land identified as surplus in the inventory of 
 14.28  state-owned land. 
 14.29     Subd. 4.  [SALE OF STATE LANDS REVOLVING LOAN 
 14.30  FUND.] $180,075 is appropriated from the general fund in fiscal 
 14.31  year 2004 to the commissioner of administration for purposes of 
 14.32  paying the actual expenses of selling state-owned lands to 
 14.33  achieve the anticipated savings required in this section.  From 
 14.34  the gross proceeds of land sales under this section, the 
 14.35  commissioner of administration must cancel the amount of the 
 14.36  appropriation in this subdivision to the general fund by June 
 15.1   30, 2005. 
 15.2      Sec. 32.  [EFFECTIVE DATE.] 
 15.3      The appropriations for fiscal year 2003 are effective the 
 15.4   day following final enactment. 
 15.5                              ARTICLE 2 
 15.6                     STATE GOVERNMENT OPERATIONS 
 15.7      Section 1.  Minnesota Statutes 2002, section 3.885, 
 15.8   subdivision 1, is amended to read: 
 15.9      Subdivision 1.  [MEMBERSHIP.] The legislative commission on 
 15.10  planning and fiscal policy consists of 18 nine members of the 
 15.11  senate appointed by the subcommittee on committees of the 
 15.12  committee on rules and administration and nine members of the 
 15.13  house of representatives appointed by the legislative 
 15.14  coordinating commission speaker.  Vacancies on the commission 
 15.15  are filled in the same manner as original appointments.  The 
 15.16  commission shall elect a chair and a vice-chair from among its 
 15.17  members.  The chair alternates between a member of the senate 
 15.18  and a member of the house in January of each odd-numbered year. 
 15.19     Sec. 2.  Minnesota Statutes 2002, section 3.971, 
 15.20  subdivision 2, is amended to read: 
 15.21     Subd. 2.  [STAFF; COMPENSATION.] The legislative auditor 
 15.22  shall establish a financial audits division and a program 
 15.23  evaluation division to fulfill the duties prescribed in this 
 15.24  section.  Each division must may be supervised by a deputy 
 15.25  auditor, appointed by the legislative auditor, with the approval 
 15.26  of the commission, for a term coterminous with the legislative 
 15.27  auditor's term.  The deputy auditors may be removed before the 
 15.28  expiration of their terms only for cause.  The legislative 
 15.29  auditor and deputy auditors may each appoint a confidential 
 15.30  secretary to serve at pleasure.  The salaries and benefits of 
 15.31  the legislative auditor, deputy auditors and confidential 
 15.32  secretaries shall be determined by the compensation plan 
 15.33  approved by the legislative coordinating commission.  The deputy 
 15.34  auditors may perform and exercise the powers, duties and 
 15.35  responsibilities imposed by law on the legislative auditor when 
 15.36  authorized by the legislative auditor.  The deputy auditors and 
 16.1   the confidential secretaries serve in the unclassified civil 
 16.2   service, but all other employees of the legislative auditor are 
 16.3   in the classified civil service.  While in office, a person 
 16.4   appointed deputy for the financial audit division must hold an 
 16.5   active license as a certified public accountant. 
 16.6      Sec. 3.  [3A.115] 
 16.7      The amount necessary to fund the retirement allowance 
 16.8   granted under this chapter to a former legislator upon 
 16.9   retirement is appropriated from the general fund to the director 
 16.10  to pay pension obligations due to the retiree.  Retirement 
 16.11  allowances payable to retired legislators and their survivors 
 16.12  under this chapter must be adjusted in the same manner, at the 
 16.13  same times, and in the same amounts as are benefits payable from 
 16.14  the Minnesota postretirement investment fund to retirees of a 
 16.15  participating public pension fund. 
 16.16     Sec. 4.  Minnesota Statutes 2002, section 6.48, is amended 
 16.17  to read: 
 16.18     6.48 [EXAMINATION OF COUNTIES; COST, FEES.] 
 16.19     All the powers and duties conferred and imposed upon the 
 16.20  state auditor shall be exercised and performed by the state 
 16.21  auditor in respect to the offices, institutions, public 
 16.22  property, and improvements of several counties of the state.  At 
 16.23  least once in each year, if funds and personnel permit, the 
 16.24  state auditor shall may visit, without previous notice, each 
 16.25  county and make a thorough examination of all accounts and 
 16.26  records relating to the receipt and disbursement of the public 
 16.27  funds and the custody of the public funds and other 
 16.28  property.  If the audit is performed by a private certified 
 16.29  public accountant, the state auditor may require additional 
 16.30  information from the private certified public accountant as the 
 16.31  state auditor deems in the public interest.  The state auditor 
 16.32  may accept the audit or make additional examinations as the 
 16.33  state auditor deems to be in the public interest.  The state 
 16.34  auditor shall prescribe and install systems of accounts and 
 16.35  financial reports that shall be uniform, so far as practicable, 
 16.36  for the same class of offices.  A copy of the report of such 
 17.1   examination shall be filed and be subject to public inspection 
 17.2   in the office of the state auditor and another copy in the 
 17.3   office of the auditor of the county thus examined.  The state 
 17.4   auditor may accept the records and audit, or any part thereof, 
 17.5   of the department of human services in lieu of examination of 
 17.6   the county social welfare funds, if such audit has been made 
 17.7   within any period covered by the state auditor's audit of the 
 17.8   other records of the county.  If any such examination shall 
 17.9   disclose malfeasance, misfeasance, or nonfeasance in any office 
 17.10  of such county, such report shall be filed with the county 
 17.11  attorney of the county, and the county attorney shall institute 
 17.12  such civil and criminal proceedings as the law and the 
 17.13  protection of the public interests shall require. 
 17.14     The county receiving such any examination shall pay to the 
 17.15  state general fund, notwithstanding the provisions of section 
 17.16  16A.125, the total cost and expenses of such examinations, 
 17.17  including the salaries paid to the examiners while actually 
 17.18  engaged in making such examination.  The state auditor on 
 17.19  deeming it advisable may bill counties, having a population of 
 17.20  200,000 or over, monthly for services rendered and the officials 
 17.21  responsible for approving and paying claims shall cause said 
 17.22  bill to be promptly paid.  The general fund shall be credited 
 17.23  with all collections made for any such examinations.  
 17.24     Sec. 5.  Minnesota Statutes 2002, section 6.49, is amended 
 17.25  to read: 
 17.26     6.49 [CITIES OF FIRST CLASS.] 
 17.27     All powers and duties conferred and imposed upon the state 
 17.28  auditor with respect to state and county officers, institutions, 
 17.29  property, and improvements are hereby extended to cities of the 
 17.30  first class.  Copies of the written report of the state auditor 
 17.31  on the financial condition and accounts of such city shall be 
 17.32  filed in the state auditor's office, with the mayor, city 
 17.33  council, and city comptroller thereof, and with the city 
 17.34  commissioners, if such city have such officers.  If such report 
 17.35  disclose malfeasance, misfeasance, or nonfeasance in office, 
 17.36  copies thereof shall be filed with the city attorney thereof and 
 18.1   with the county attorney of the county in which such city is 
 18.2   located, and these officials of the law shall institute such 
 18.3   proceedings, civil or criminal, as the law and the public 
 18.4   interest require.  
 18.5      The state auditor may shall bill said cities monthly for 
 18.6   services rendered, including any examination, and the officials 
 18.7   responsible for approving and paying claims shall cause said 
 18.8   bill to be promptly paid.  
 18.9      Sec. 6.  Minnesota Statutes 2002, section 6.54, is amended 
 18.10  to read: 
 18.11     6.54 [EXAMINATION OF COUNTY AND MUNICIPAL RECORDS PURSUANT 
 18.12  TO PETITION.] 
 18.13     The registered voters in a county or home rule charter or 
 18.14  statutory city or the electors at an annual or special town 
 18.15  meeting of a town may petition the state auditor to examine the 
 18.16  books, records, accounts, and affairs of the county, home rule 
 18.17  charter or statutory city, town, or of any organizational unit, 
 18.18  activity, project, enterprise, or fund thereof; and the scope of 
 18.19  the examination may be limited by the petition, but the 
 18.20  examination shall cover, at least, all cash received and 
 18.21  disbursed and the transactions relating thereto, provided that 
 18.22  the state auditor shall not examine more than the six latest 
 18.23  years preceding the circulation of the petition, unless it 
 18.24  appears to the state auditor during the examination that the 
 18.25  audit period should be extended to permit a full recovery under 
 18.26  bonds furnished by public officers or employees, and may if it 
 18.27  appears to the auditor in the public interest confine the period 
 18.28  or the scope of audit or both period and scope of audit, to less 
 18.29  than that requested by the petition.  In the case of a county or 
 18.30  home rule charter or statutory city, the petition shall be 
 18.31  signed by a number of registered voters at least equal to 20 
 18.32  percent of those voting in the last presidential election.  The 
 18.33  eligible voters of any school district may petition the state 
 18.34  auditor, who shall be subject to the same restrictions regarding 
 18.35  the scope and period of audit, provided that the petition shall 
 18.36  be signed by at least ten eligible voters for each 50 resident 
 19.1   pupils in average daily membership during the preceding school 
 19.2   year as shown on the records in the office of the commissioner 
 19.3   of children, families, and learning.  In the case of school 
 19.4   districts, the petition shall be signed by at least ten eligible 
 19.5   voters.  At the time it is circulated, every petition shall 
 19.6   contain a statement that the cost of the audit will be borne by 
 19.7   the county, city, or school district as provided by law.  Thirty 
 19.8   days before the petition is delivered to the state auditor it 
 19.9   shall be presented to the appropriate city or school district 
 19.10  clerk and the county auditor.  The county auditor shall 
 19.11  determine and certify whether the petition is signed by the 
 19.12  required number of registered voters or eligible voters as the 
 19.13  case may be.  The certificate shall be conclusive evidence 
 19.14  thereof in any action or proceeding for the recovery of the 
 19.15  costs, charges, and expenses of any examination made pursuant to 
 19.16  the petition. 
 19.17     Sec. 7.  Minnesota Statutes 2002, section 6.55, is amended 
 19.18  to read: 
 19.19     6.55 [EXAMINATION OF RECORDS PURSUANT TO RESOLUTION OF 
 19.20  GOVERNING BODY.] 
 19.21     The governing body of any city, town, county or school 
 19.22  district, by appropriate resolution may ask the state auditor to 
 19.23  examine the books, records, accounts and affairs of their 
 19.24  government, or of any organizational unit, activity, project, 
 19.25  enterprise, or fund thereof; and the state auditor shall examine 
 19.26  the same upon receiving, pursuant to said resolution, a written 
 19.27  request signed by a majority of the members of the governing 
 19.28  body; and the governing body of any public utility commission, 
 19.29  or of any public corporation having a body politic and 
 19.30  corporate, or of any instrumentality joint or several of any 
 19.31  city, town, county, or school district, may request an audit of 
 19.32  its books, records, accounts and affairs in the same manner; 
 19.33  provided that the scope of the examination may be limited by the 
 19.34  request, but such examination shall cover, at least, all cash 
 19.35  received and disbursed and the transactions relating thereto.  
 19.36  Such written request shall be presented to the clerk, or 
 20.1   recording officer of such city, town, county, school district, 
 20.2   public utility commission, public corporation, or 
 20.3   instrumentality, before being presented to the state auditor, 
 20.4   who shall determine whether the same is signed by a majority of 
 20.5   the members of such governing body and, if found to be so 
 20.6   signed, shall certify such fact, and the fact that such 
 20.7   resolution was passed, which certificate shall be conclusive 
 20.8   evidence thereof in any action or proceedings for the recovery 
 20.9   of the costs, charges and expenses of any examination made 
 20.10  pursuant to such request.  Nothing contained in any of the laws 
 20.11  of the state relating to the state auditor, shall be so 
 20.12  construed as to prevent any county, city, town, or school 
 20.13  district from employing a certified public accountant to examine 
 20.14  its books, records, accounts, and affairs.  For the purposes of 
 20.15  this section, the governing body of a town is the town board.  
 20.16     Sec. 8.  Minnesota Statutes 2002, section 6.64, is amended 
 20.17  to read: 
 20.18     6.64 [COOPERATION WITH PUBLIC ACCOUNTANTS; PUBLIC 
 20.19  ACCOUNTANT DEFINED.] 
 20.20     There shall be mutual cooperation between the state auditor 
 20.21  and public accountants in the performance of auditing, 
 20.22  accounting, and other related services for counties, cities, 
 20.23  towns, school districts, and other public corporations.  For the 
 20.24  purposes of sections 6.64 to 6.71 the term public accountant 
 20.25  shall have the meaning ascribed to it in section 412.222.  
 20.26     Sec. 9.  Minnesota Statutes 2002, section 6.65, is amended 
 20.27  to read: 
 20.28     6.65 [MINIMUM PROCEDURES FOR AUDITORS, PRESCRIBED.] 
 20.29     The state auditor shall prescribe minimum procedures and 
 20.30  the audit scope for auditing the books, records, accounts, and 
 20.31  affairs of counties and local governments in Minnesota.  The 
 20.32  minimum scope for audits of all local governments must include 
 20.33  financial and legal compliance audits.  Audits of all school 
 20.34  districts must include a determination of compliance with 
 20.35  uniform financial accounting and reporting standards.  The state 
 20.36  auditor shall promulgate an audit guide for legal compliance 
 21.1   audits, in consultation with representatives of the state 
 21.2   auditor, the attorney general, towns, cities, counties, school 
 21.3   districts, and private sector public accountants. 
 21.4      Sec. 10.  Minnesota Statutes 2002, section 6.66, is amended 
 21.5   to read: 
 21.6      6.66 [CERTAIN PRACTICES OF PUBLIC ACCOUNTANTS AUTHORIZED.] 
 21.7      Any public accountant may engage in the practice of 
 21.8   auditing the books, records, accounts, and affairs of counties, 
 21.9   cities, towns, school districts, and other public corporations 
 21.10  which are not otherwise required by law to be audited 
 21.11  exclusively by the state auditor.  
 21.12     Sec. 11.  Minnesota Statutes 2002, section 6.67, is amended 
 21.13  to read: 
 21.14     6.67 [PUBLIC ACCOUNTANTS; REPORT OF EVIDENCE POINTING TO 
 21.15  MISCONDUCT.] 
 21.16     Whenever a public accountant in the course of auditing the 
 21.17  books and affairs of a county, city, town, school district, or 
 21.18  other public corporations, shall discover evidence pointing to 
 21.19  nonfeasance, misfeasance, or malfeasance, on the part of an 
 21.20  officer or employee in the conduct of duties and affairs, the 
 21.21  public accountant shall promptly make a report of such discovery 
 21.22  to the state auditor and the county attorney of the county in 
 21.23  which the governmental unit is situated and the public 
 21.24  accountant shall also furnish a copy of the report of audit upon 
 21.25  completion to said officers.  The county attorney shall act on 
 21.26  such report in the same manner as required by law for reports 
 21.27  made to the county attorney by the state auditor.  
 21.28     Sec. 12.  Minnesota Statutes 2002, section 6.68, 
 21.29  subdivision 1, is amended to read: 
 21.30     Subdivision 1.  [REQUEST TO GOVERNING BODY.] If in an audit 
 21.31  of a county, city, town, school district, or other public 
 21.32  corporation, a public accountant has need of the assistance of 
 21.33  the state auditor, the accountant may obtain such assistance by 
 21.34  requesting the governing body of the governmental unit being 
 21.35  examined to request the state auditor to perform such auditing 
 21.36  or investigative services, or both, as the matter and the public 
 22.1   interest require.  
 22.2      Sec. 13.  Minnesota Statutes 2002, section 6.70, is amended 
 22.3   to read: 
 22.4      6.70 [ACCESS TO REPORTS.] 
 22.5      The state auditor and the public accountants shall have 
 22.6   reasonable access to each other's audit reports, working papers, 
 22.7   and audit programs concerning audits made by each of counties, 
 22.8   cities, towns, school districts, and other public corporations.  
 22.9      Sec. 14.  Minnesota Statutes 2002, section 6.71, is amended 
 22.10  to read: 
 22.11     6.71 [SCOPE OF AUDITOR'S INVESTIGATION.] 
 22.12     Whenever the governing body of a county, city, town, or 
 22.13  school district shall have requested a public accountant to make 
 22.14  an audit of its books and affairs, and such audit is in progress 
 22.15  or has been completed, and freeholders registered voters or 
 22.16  electors petition or the governing body requests or both the 
 22.17  state auditor to make an examination covering the same, or part 
 22.18  of the same, period, the state auditor may, in the public 
 22.19  interest, limit the scope of the examination to less than that 
 22.20  specified in section 6.54, but the scope shall cover, at least, 
 22.21  an investigation of those complaints which are within the state 
 22.22  auditor's powers and duties to investigate. 
 22.23     Sec. 15.  Minnesota Statutes 2002, section 6.74, is amended 
 22.24  to read: 
 22.25     6.74 [INFORMATION COLLECTED FROM LOCAL GOVERNMENTS.] 
 22.26     The state auditor, or a designated agent, shall collect 
 22.27  annually from all city, county, and other local units of 
 22.28  government, information as to the assessment of property, 
 22.29  collection of taxes, receipts from licenses and other sources, 
 22.30  the expenditure of public funds for all purposes, borrowing, 
 22.31  debts, principal and interest payments on debts, and such other 
 22.32  information as may be needful.  The data shall be supplied 
 22.33  upon blanks forms prescribed by the state auditor, and all 
 22.34  public officials so called upon shall fill out properly and 
 22.35  return promptly all blanks forms so transmitted.  The state 
 22.36  auditor or assistants, may examine local records in order to 
 23.1   complete or verify the information.  
 23.2      Sec. 16.  [6.78] [BEST PRACTICES REVIEWS.] 
 23.3      The state auditor shall conduct best practices reviews that 
 23.4   examine the procedures and practices used to deliver local 
 23.5   government services, determine the methods of local government 
 23.6   service delivery, identify variations in cost and effectiveness, 
 23.7   and identify practices to save money or provide more effective 
 23.8   service delivery.  The state auditor shall recommend to local 
 23.9   governments service delivery methods and practices to improve 
 23.10  the cost-effectiveness of services.  The state auditor shall 
 23.11  determine the local government services to be reviewed in 
 23.12  consultation with representatives of the Association of 
 23.13  Minnesota Counties, the League of Minnesota Cities, the 
 23.14  Association of Metropolitan Municipalities, the Minnesota 
 23.15  Association of Townships, the Minnesota Municipal Utilities 
 23.16  Association, and the Minnesota Association of School 
 23.17  Administrators. 
 23.18     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
 23.19     Sec. 17.  Minnesota Statutes 2002, section 8.06, is amended 
 23.20  to read: 
 23.21     8.06 [ATTORNEY FOR STATE OFFICERS, BOARDS, OR COMMISSIONS; 
 23.22  EMPLOY COUNSEL.] 
 23.23     The attorney general shall act as the attorney for all 
 23.24  state officers and all boards or commissions created by law in 
 23.25  all matters pertaining to their official duties.  When requested 
 23.26  by the attorney general, it shall be the duty of any county 
 23.27  attorney of the state to appear within the county and act as 
 23.28  attorney for any such board, commission, or officer in any court 
 23.29  of such county.  The attorney general may, upon request in 
 23.30  writing, employ, and fix the compensation of, a special attorney 
 23.31  for any such board, commission, or officer when, in the attorney 
 23.32  general's judgment, the public welfare will be promoted 
 23.33  thereby.  Such special attorney's fees or salary shall be paid 
 23.34  from the appropriation made for such board, commission, or 
 23.35  officer.  Except as herein provided, no board, commission, or 
 23.36  officer shall hereafter employ any attorney at the expense of 
 24.1   the state.  
 24.2      Whenever the attorney general, the governor, and the chief 
 24.3   justice of the supreme court shall certify, in writing, filed in 
 24.4   the office of the secretary of state, that it is necessary, in 
 24.5   the proper conduct of the legal business of the state, either 
 24.6   civil or criminal, that the state employ additional counsel, the 
 24.7   attorney general shall thereupon be authorized to employ such 
 24.8   counsel and, with the governor and the chief justice, fix the 
 24.9   additional counsel's compensation.  The governor, if in the 
 24.10  governor's opinion the public interest requires such action, may 
 24.11  employ counsel to act in any action or proceeding if the 
 24.12  attorney general is in any way interested adversely to the 
 24.13  state.  Except as herein stated, no additional counsel shall be 
 24.14  employed and the legal business of the state shall be performed 
 24.15  exclusively by the attorney general and the attorney general's 
 24.16  assistants. 
 24.17     Sec. 18.  Minnesota Statutes 2002, section 10A.01, 
 24.18  subdivision 21, is amended to read: 
 24.19     Subd. 21.  [LOBBYIST.] (a) "Lobbyist" means an individual: 
 24.20     (1) engaged for pay or other consideration, or authorized 
 24.21  to spend money by another individual, association, political 
 24.22  subdivision, or public higher education system, who spends more 
 24.23  than five hours in any month or more than $250, not including 
 24.24  the individual's own travel expenses and membership dues, of 
 24.25  more than $3,000 from all sources in any year, for the purpose 
 24.26  of attempting to influence legislative or administrative action, 
 24.27  or the official action of a metropolitan governmental unit, by 
 24.28  communicating or urging others to communicate with public or 
 24.29  local officials; or 
 24.30     (2) who spends more than $250, not including the 
 24.31  individual's own traveling expenses and membership dues, in any 
 24.32  year for the purpose of attempting to influence legislative or 
 24.33  administrative action, or the official action of a metropolitan 
 24.34  governmental unit, by communicating or urging others to 
 24.35  communicate with public or local officials. 
 24.36     (b) "Lobbyist" does not include: 
 25.1      (1) a public official; 
 25.2      (2) an employee of the state, including an employee of any 
 25.3   of the public higher education systems; 
 25.4      (3) an elected local official; 
 25.5      (4) a nonelected local official or an employee of a 
 25.6   political subdivision acting in an official capacity, unless the 
 25.7   nonelected official or employee of a political subdivision 
 25.8   spends more than 50 hours in any month attempting to influence 
 25.9   legislative or administrative action, or the official action of 
 25.10  a metropolitan governmental unit other than the political 
 25.11  subdivision employing the official or employee, by communicating 
 25.12  or urging others to communicate with public or local officials, 
 25.13  including time spent monitoring legislative or administrative 
 25.14  action, or the official action of a metropolitan governmental 
 25.15  unit, and related research, analysis, and compilation and 
 25.16  dissemination of information relating to legislative or 
 25.17  administrative policy in this state, or to the policies of 
 25.18  metropolitan governmental units; 
 25.19     (5) a party or the party's representative appearing in a 
 25.20  proceeding before a state board, commission, or agency of the 
 25.21  executive branch unless the board, commission, or agency is 
 25.22  taking administrative action; 
 25.23     (6) an individual while engaged in selling goods or 
 25.24  services to be paid for by public funds; 
 25.25     (7) a news medium or its employees or agents while engaged 
 25.26  in the publishing or broadcasting of news items, editorial 
 25.27  comments, or paid advertisements which directly or indirectly 
 25.28  urge official action; 
 25.29     (8) a paid expert witness whose testimony is requested by 
 25.30  the body before which the witness is appearing, but only to the 
 25.31  extent of preparing or delivering testimony; or 
 25.32     (9) a party or the party's representative appearing to 
 25.33  present a claim to the legislature and communicating to 
 25.34  legislators only by the filing of a claim form and supporting 
 25.35  documents and by appearing at public hearings on the claim. 
 25.36     (c) An individual who volunteers personal time to work 
 26.1   without pay or other consideration on a lobbying campaign, and 
 26.2   who does not spend more than the limit in paragraph (a), clause 
 26.3   (2), need not register as a lobbyist. 
 26.4      (d) An individual who provides administrative support to a 
 26.5   lobbyist and whose salary and administrative expenses 
 26.6   attributable to lobbying activities are reported as lobbying 
 26.7   expenses by the lobbyist, but who does not communicate or urge 
 26.8   others to communicate with public or local officials, need not 
 26.9   register as a lobbyist. 
 26.10     Sec. 19.  Minnesota Statutes 2002, section 10A.02, is 
 26.11  amended by adding a subdivision to read: 
 26.12     Subd. 15.  [DISPOSITION OF FEES.] The board must deposit 
 26.13  all fees collected under this chapter into the general fund in 
 26.14  the state treasury. 
 26.15     Sec. 20.  Minnesota Statutes 2002, section 10A.025, 
 26.16  subdivision 2, is amended to read: 
 26.17     Subd. 2.  [PENALTY FOR FALSE STATEMENTS.] A report or 
 26.18  statement required to be filed under this chapter must be signed 
 26.19  and certified as true by the individual required to file the 
 26.20  report.  The signature may be an electronic signature consisting 
 26.21  of a password assigned by the board.  An individual who signs 
 26.22  and certifies to be true a report or statement knowing it 
 26.23  contains false information or who knowingly omits required 
 26.24  information is guilty of a gross misdemeanor and subject to a 
 26.25  civil penalty imposed by the board of up to $3,000. 
 26.26     Sec. 21.  Minnesota Statutes 2002, section 10A.03, 
 26.27  subdivision 1, is amended to read: 
 26.28     Subdivision 1.  [FIRST REGISTRATION.] A lobbyist must file 
 26.29  a registration form with the board within five days after 
 26.30  becoming a lobbyist or being engaged by a new individual, 
 26.31  association, political subdivision, or public higher education 
 26.32  system. 
 26.33     Sec. 22.  Minnesota Statutes 2002, section 10A.04, 
 26.34  subdivision 1, is amended to read: 
 26.35     Subdivision 1.  [REPORTS REQUIRED.] A lobbyist must file 
 26.36  reports of the lobbyist's activities with the board as long as 
 27.1   the lobbyist continues to lobby.  The report may be filed 
 27.2   electronically.  A lobbyist may file a termination statement at 
 27.3   any time after ceasing to lobby. 
 27.4      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2005.
 27.5      Sec. 23.  Minnesota Statutes 2002, section 10A.04, 
 27.6   subdivision 2, is amended to read: 
 27.7      Subd. 2.  [TIME OF REPORTS.] Each report must cover the 
 27.8   time from the last day of the period covered by the last report 
 27.9   to 15 days before the current filing date.  The reports must be 
 27.10  filed with the board by the following dates: 
 27.11     (1) January 15; and 
 27.12     (2) April 15; and 
 27.13     (3) July 15 June 15.  
 27.14     Sec. 24.  Minnesota Statutes 2002, section 10A.04, is 
 27.15  amended by adding a subdivision to read: 
 27.16     Subd. 2a.  [FEE.] On January 15 each year, each lobbyist 
 27.17  must pay a fee of $50 for each individual, association, 
 27.18  political subdivision, or public higher education system on 
 27.19  whose behalf the lobbyist is registered, except as otherwise 
 27.20  provided in this subdivision.  The fee must be no more than 
 27.21  necessary to cover the cost of administering sections 10A.03 to 
 27.22  10A.06.  The amount of the fee is subject to change each 
 27.23  biennium in accordance with the budget request made by the board.
 27.24  This subdivision expires June 30, 2004. 
 27.25     Sec. 25.  Minnesota Statutes 2002, section 10A.04, 
 27.26  subdivision 4, is amended to read: 
 27.27     Subd. 4.  [CONTENT.] (a) A report under this section must 
 27.28  include information the board requires from the registration 
 27.29  form and the information required by this subdivision for the 
 27.30  reporting period. 
 27.31     (b) A lobbyist must report the lobbyist's total 
 27.32  disbursements on lobbying, separately listing lobbying to 
 27.33  influence legislative action, lobbying to influence 
 27.34  administrative action, and lobbying to influence the official 
 27.35  actions of a metropolitan governmental unit, and a breakdown of 
 27.36  disbursements for each of those kinds of lobbying into 
 28.1   categories specified by the board, including but not limited to 
 28.2   the cost of publication and distribution of each publication 
 28.3   used in lobbying; other printing; media, including the cost of 
 28.4   production; postage; travel; fees, including allowances; 
 28.5   entertainment; telephone and telegraph; and other expenses. 
 28.6      (c) A lobbyist must report the amount and nature of each 
 28.7   gift, item, or benefit, excluding contributions to a candidate, 
 28.8   equal in value to $5 or more, given or paid to any official, as 
 28.9   defined in section 10A.071, subdivision 1, by the lobbyist or an 
 28.10  employer or employee of the lobbyist.  The list must include the 
 28.11  name and address of each official to whom the gift, item, or 
 28.12  benefit was given or paid and the date it was given or paid.  
 28.13     (d) A lobbyist must report each original source of money in 
 28.14  excess of $500 in any year used for the purpose of lobbying to 
 28.15  influence legislative action, administrative action, or the 
 28.16  official action of a metropolitan governmental unit.  The list 
 28.17  must include the name, address, and employer, or, if 
 28.18  self-employed, the occupation and principal place of business, 
 28.19  of each payer of money in excess of $500. 
 28.20     (e) On the report due April June 15, the lobbyist must 
 28.21  provide a general description of the subjects lobbied in the 
 28.22  previous 12 months. 
 28.23     Sec. 26.  Minnesota Statutes 2002, section 10A.04, 
 28.24  subdivision 5, is amended to read: 
 28.25     Subd. 5.  [LATE FILING.] The board must send a notice by 
 28.26  certified mail to any lobbyist or principal who fails after 
 28.27  seven days after a filing date imposed by this section to file a 
 28.28  report or statement or to pay a fee required by this section.  
 28.29  If a lobbyist or principal fails to file a report or pay a fee 
 28.30  within ten business days after the notice was sent, the board 
 28.31  may impose a late filing fee of $5 per day, not to exceed $100, 
 28.32  commencing with the 11th day after the notice was sent.  The 
 28.33  board must send an additional notice by certified mail to any 
 28.34  lobbyist or principal who fails to file a report or pay a fee 
 28.35  within 14 days after the first notice was sent by the board that 
 28.36  the lobbyist or principal may be subject to a civil penalty for 
 29.1   failure to file the report or pay the fee.  A lobbyist or 
 29.2   principal who fails to file a report or statement or pay a fee 
 29.3   within seven days after the second notice was sent by the board 
 29.4   is subject to a civil penalty imposed by the board of up to 
 29.5   $1,000. 
 29.6      Sec. 27.  Minnesota Statutes 2002, section 10A.04, 
 29.7   subdivision 6, is amended to read: 
 29.8      Subd. 6.  [PRINCIPAL REPORTS.] (a) A principal must report 
 29.9   to the board as required in this subdivision by March 15 for the 
 29.10  preceding calendar year.  Along with the report, the principal 
 29.11  must pay a fee of $50, except as otherwise provided in this 
 29.12  subdivision.  The fee must be no more than necessary to cover 
 29.13  the cost of administering sections 10A.03 to 10A.06.  The amount 
 29.14  of the fee is subject to change each biennium in accordance with 
 29.15  the budget request made by the board. 
 29.16     (b) The principal must report the total amount, rounded to 
 29.17  the nearest $20,000, spent by the principal during the preceding 
 29.18  calendar year to influence legislative action, administrative 
 29.19  action, and the official action of metropolitan governmental 
 29.20  units. 
 29.21     (c) The principal must report under this subdivision a 
 29.22  total amount that includes: 
 29.23     (1) all direct payments by the principal to lobbyists in 
 29.24  this state; 
 29.25     (2) all expenditures for advertising, mailing, research, 
 29.26  analysis, compilation and dissemination of information, and 
 29.27  public relations campaigns related to legislative action, 
 29.28  administrative action, or the official action of metropolitan 
 29.29  governmental units in this state; and 
 29.30     (3) all salaries and administrative expenses attributable 
 29.31  to activities of the principal relating to efforts to influence 
 29.32  legislative action, administrative action, or the official 
 29.33  action of metropolitan governmental units in this state. 
 29.34     Sec. 28.  Minnesota Statutes 2002, section 10A.34, 
 29.35  subdivision 1a, is amended to read: 
 29.36     Subd. 1a.  [RECOVERING LATE FEES AND PENALTIES.] The board 
 30.1   may bring an action in the district court in Ramsey county to 
 30.2   recover a fee, late filing fee, or penalty imposed under this 
 30.3   chapter.  Money recovered must be deposited in the general fund 
 30.4   of the state.  
 30.5      Sec. 29.  Minnesota Statutes 2002, section 14.091, is 
 30.6   amended to read: 
 30.7      14.091 [PETITION; UNIT OF LOCAL GOVERNMENT.] 
 30.8      (a) The elected governing body of a statutory or home rule 
 30.9   city, a county, or a sanitary district may petition for 
 30.10  amendment or repeal of a rule or a specified portion of a rule.  
 30.11  The petition must be adopted by resolution of the elected 
 30.12  governing body and must be submitted in writing to the agency 
 30.13  and to the office of administrative hearings, must specify what 
 30.14  amendment or repeal is requested, and must demonstrate that one 
 30.15  of the following has become available since the adoption of the 
 30.16  rule in question: 
 30.17     (1) significant new evidence relating to the need for or 
 30.18  reasonableness of the rule; or 
 30.19     (2) less costly or intrusive methods of achieving the 
 30.20  purpose of the rule. 
 30.21     (b) Within 30 days of receiving a petition, an agency shall 
 30.22  reply to the petitioner in writing stating either that the 
 30.23  agency, within 90 days of the date of the reply, will give 
 30.24  notice under section 14.389 of intent to adopt the amendment or 
 30.25  repeal requested by the petitioner or that the agency does not 
 30.26  intend to amend or repeal the rule and has requested the office 
 30.27  of administrative hearings to review the petition.  If the 
 30.28  agency intends to amend or repeal the rule in the manner 
 30.29  requested by the petitioner, the agency must use the process 
 30.30  under section 14.389 to amend or repeal the rule.  Section 
 30.31  14.389, subdivision 5, applies.  
 30.32     (c) Upon receipt of an agency request under paragraph (b), 
 30.33  the chief administrative law judge shall assign an 
 30.34  administrative law judge, who was not involved when the rule or 
 30.35  portion of a rule that is the subject of the petition was 
 30.36  adopted or amended, to review the petition to determine whether 
 31.1   the petitioner has complied with the requirements of paragraph 
 31.2   (a).  The petitioner, the agency, or any interested person, at 
 31.3   the option of any of them, may submit written material for the 
 31.4   assigned administrative law judge's consideration within ten 
 31.5   days of the chief administrative law judge's receipt of the 
 31.6   agency request.  The administrative law judge shall dismiss the 
 31.7   petition if the judge determines that: 
 31.8      (1) the petitioner has not complied with the requirements 
 31.9   of paragraph (a); 
 31.10     (2) the rule is required to comply with a court order; or 
 31.11     (3) the rule is required by federal law or is required to 
 31.12  maintain authority to administer a federal program. 
 31.13     (d) If the administrative law judge assigned by the chief 
 31.14  administrative law judge determines that the petitioner has 
 31.15  complied with the requirements of paragraph (a), the 
 31.16  administrative law judge shall conduct a hearing and issue a 
 31.17  decision on the petition within 120 days of its receipt by the 
 31.18  office of administrative hearings.  The agency shall give notice 
 31.19  of the hearing in the same manner required for notice of a 
 31.20  proposed rule hearing under section 14.14, subdivision 1a.  At 
 31.21  the public hearing, the agency shall make an affirmative 
 31.22  presentation of facts establishing the need for and 
 31.23  reasonableness of the rule or portion of the rule in question.  
 31.24  If the administrative law judge determines that the agency has 
 31.25  not established the continued need for and reasonableness of the 
 31.26  rule or portion of the rule, the rule or portion of the rule 
 31.27  does not have the force of law, effective 90 days after the 
 31.28  administrative law judge's decision, unless the agency has 
 31.29  before then published notice in the State Register of intent to 
 31.30  amend or repeal the rule in accordance with paragraph (e). 
 31.31     (e) The agency may amend or repeal the rule in the manner 
 31.32  requested by the petitioner, or in another manner that the 
 31.33  administrative law judge has determined is needed and reasonable.
 31.34  Amendments under this paragraph may be adopted under the 
 31.35  expedited process in section 14.389.  Section 14.389, 
 31.36  subdivision 5, applies to this adoption.  If the agency uses the 
 32.1   expedited process and no public hearing is required, the agency 
 32.2   must complete the amendment or repeal of the rule within 90 days 
 32.3   of the administrative law judge's decision under paragraph (d).  
 32.4   If a public hearing is required, the agency must complete the 
 32.5   amendment or repeal of the rule within 180 days of the 
 32.6   administrative law judge's decision under paragraph (d).  A rule 
 32.7   or portion of a rule that is not amended or repealed in the time 
 32.8   prescribed by this paragraph does not have the force of law upon 
 32.9   expiration of the deadline.  A rule that is amended within the 
 32.10  time prescribed in this paragraph has the force of law, as 
 32.11  amended. 
 32.12     (f) The chief administrative law judge shall report the 
 32.13  decision under paragraph (d) within 30 days to the chairs of the 
 32.14  house and senate committees having jurisdiction over 
 32.15  governmental operations and the chairs of the house and senate 
 32.16  committees having jurisdiction over the agency whose rule or 
 32.17  portion of a rule was the subject of the petition. 
 32.18     (g) The chief administrative law judge shall assess a 
 32.19  petitioner half the cost of processing a petition and conducting 
 32.20  a public hearing under paragraph (d). 
 32.21     (h) This section expires July 31, 2006. 
 32.22     Sec. 30.  Minnesota Statutes 2002, section 14.48, is 
 32.23  amended by adding a subdivision to read: 
 32.24     Subd. 4.  [MANDATORY RETIREMENT.] An administrative law 
 32.25  judge and compensation judge must retire upon attaining age 70.  
 32.26  The chief administrative law judge may appoint a retired 
 32.27  administrative law judge or compensation judge to hear any 
 32.28  proceeding that is properly assignable to an administrative law 
 32.29  judge or compensation judge.  When a retired administrative law 
 32.30  judge or compensation judge undertakes this service, the retired 
 32.31  judge shall receive pay and expenses in the amount payable to 
 32.32  temporary administrative law judges or compensation judges 
 32.33  serving under section 14.49. 
 32.34     <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2003.  
 32.35  An administrative law judge or compensation judge who has 
 32.36  attained the age of 70 on or before that date must retire by 
 33.1   June 30, 2003. 
 33.2      Sec. 31.  Minnesota Statutes 2002, section 16A.102, 
 33.3   subdivision 1, is amended to read: 
 33.4      Subdivision 1.  [GOVERNOR'S RECOMMENDATION.] By the fourth 
 33.5   Tuesday in January of each odd-numbered year date specified in 
 33.6   section 16A.11, subdivision 1, for submission of parts one and 
 33.7   two of the governor's budget, the governor shall submit to the 
 33.8   legislature a recommended revenue target for the next two 
 33.9   bienniums.  The recommended revenue target must specify: 
 33.10     (1) the maximum share of Minnesota personal income to be 
 33.11  collected in taxes and other revenues to pay for state and local 
 33.12  government services; 
 33.13     (2) the division of the share between state and local 
 33.14  government revenues; and 
 33.15     (3) the mix and rates of income, sales, and other state and 
 33.16  local taxes including property taxes and other revenues.  
 33.17  The recommendations must be based on the November forecast 
 33.18  prepared under section 16A.103. 
 33.19     Sec. 32.  Minnesota Statutes 2002, section 16A.11, 
 33.20  subdivision 3, is amended to read: 
 33.21     Subd. 3.  [PART TWO:  DETAILED BUDGET.] (a) Part two of the 
 33.22  budget, the detailed budget estimates both of expenditures and 
 33.23  revenues, must contain any statements on the financial plan 
 33.24  which the governor believes desirable or which may be required 
 33.25  by the legislature.  The detailed estimates shall include the 
 33.26  governor's budget arranged in tabular form. 
 33.27     (b) Tables listing expenditures for the next biennium must 
 33.28  show the appropriation base for each year as well as the 
 33.29  governor's total recommendation for that year for each 
 33.30  expenditure line.  The appropriation base is the amount 
 33.31  appropriated for the second year of the current biennium, 
 33.32  adjusted in accordance with any provisions of law that specify 
 33.33  changes to the base. 
 33.34     (c) The detailed estimates must include a separate line 
 33.35  listing the total number of professional or technical service 
 33.36  contracts and the total cost of those professional and technical 
 34.1   service contracts for the prior biennium and the 
 34.2   projected number of professional or technical service contracts 
 34.3   and the projected costs of those contracts for the current and 
 34.4   upcoming biennium.  They must also include a summary of the 
 34.5   personnel employed by the agency, reflected as full-time 
 34.6   equivalent positions, and the number of professional or 
 34.7   technical service consultants for the current biennium. 
 34.8      (c) (d) The detailed estimates for internal service funds 
 34.9   must include the number of full-time equivalents by program; 
 34.10  detail on any loans from the general fund, including dollar 
 34.11  amounts by program; proposed investments in technology or 
 34.12  equipment of $100,000 or more; an explanation of any operating 
 34.13  losses or increases in retained earnings; and a history of the 
 34.14  rates that have been charged, with an explanation of any rate 
 34.15  changes and the impact of the rate changes on affected agencies. 
 34.16     Sec. 33.  Minnesota Statutes 2002, section 16A.1285, 
 34.17  subdivision 3, is amended to read: 
 34.18     Subd. 3.  [DUTIES OF COMMISSIONER OF FINANCE.] The 
 34.19  commissioner of finance shall classify, monitor, analyze, and 
 34.20  report all departmental earnings that fall within the definition 
 34.21  established in subdivision 1.  Specifically, the commissioner 
 34.22  shall: 
 34.23     (1) establish and maintain a classification system that 
 34.24  clearly defines and distinguishes categories and types of 
 34.25  departmental earnings and takes into account the purpose of the 
 34.26  various earnings types and the extent to which various earnings 
 34.27  types serve a public or private interest; 
 34.28     (2) prepare a biennial report that documents collection 
 34.29  costs, purposes, and yields of all departmental earnings, the 
 34.30  report to be submitted to the legislature on or before the 
 34.31  fourth Tuesday in January in each odd-numbered year and to 
 34.32  include estimated data for the year in which the report is 
 34.33  prepared, actual data for the two years immediately before, and 
 34.34  estimates for the two years immediately following; and 
 34.35     (3) prepare and maintain a detailed directory of all 
 34.36  departmental earnings. 
 35.1   In a year following the election of a governor who had not been 
 35.2   governor the previous year, the report required by clause (2) 
 35.3   must be submitted by the third Tuesday in February. 
 35.4      Sec. 34.  Minnesota Statutes 2002, section 16A.151, 
 35.5   subdivision 5, is amended to read: 
 35.6      Subd. 5.  [EXPIRATION.] This section expires June 30, 
 35.7   2004 2006. 
 35.8      Sec. 35.  Minnesota Statutes 2002, section 16A.17, is 
 35.9   amended by adding a subdivision to read: 
 35.10     Subd. 10.  [DIRECT DEPOSIT.] Notwithstanding section 
 35.11  177.23, the commissioner may require direct deposit for all 
 35.12  state employees that are being paid by the state payroll system. 
 35.13     Sec. 36.  Minnesota Statutes 2002, section 16A.40, is 
 35.14  amended to read: 
 35.15     16A.40 [WARRANTS AND ELECTRONIC FUND TRANSFERS.] 
 35.16     Money must not be paid out of the state treasury except 
 35.17  upon the warrant of the commissioner or an electronic fund 
 35.18  transfer approved by the commissioner.  Warrants must be drawn 
 35.19  on printed blanks that are in numerical order.  The commissioner 
 35.20  shall enter, in numerical order in a warrant register, the 
 35.21  number, amount, date, and payee for every warrant issued. 
 35.22     The commissioner may require payees receiving more than ten 
 35.23  payments or $10,000 per year must to supply the commissioner 
 35.24  with their bank routing information to enable the payments to be 
 35.25  made through an electronic fund transfer. 
 35.26     Sec. 37.  Minnesota Statutes 2002, section 16A.501, is 
 35.27  amended to read: 
 35.28     16A.501 [REPORT ON EXPENDITURE OF BOND PROCEEDS.] 
 35.29     The commissioner of finance must report annually to the 
 35.30  legislature on the degree to which entities receiving 
 35.31  appropriations for capital projects in previous omnibus capital 
 35.32  improvement acts have encumbered or expended that money.  The 
 35.33  report must be submitted to the chairs of the house of 
 35.34  representatives ways and means committee and the senate finance 
 35.35  committee by February January 1 of each year. 
 35.36     Sec. 38.  Minnesota Statutes 2002, section 16A.642, 
 36.1   subdivision 1, is amended to read: 
 36.2      Subdivision 1.  [REPORTS.] (a) The commissioner of finance 
 36.3   shall report to the chairs of the senate committee on finance 
 36.4   and the house of representatives committees on ways and means 
 36.5   and on capital investment by February January 1 of each 
 36.6   odd-numbered year on the following: 
 36.7      (1) all laws authorizing the issuance of state bonds or 
 36.8   appropriating general fund money for state or local government 
 36.9   capital investment projects enacted more than four years before 
 36.10  February January 1 of that odd-numbered year; the projects 
 36.11  authorized to be acquired and constructed for which less than 
 36.12  100 percent of the authorized total cost has been expended, 
 36.13  encumbered, or otherwise obligated; the cost of contracts to be 
 36.14  let in accordance with existing plans and specifications shall 
 36.15  be considered expended for this report; and the amount of 
 36.16  general fund money appropriated but not spent or otherwise 
 36.17  obligated, and the amount of bonds not issued and bond proceeds 
 36.18  held but not previously expended, encumbered, or otherwise 
 36.19  obligated for these projects; and 
 36.20     (2) all laws authorizing the issuance of state bonds or 
 36.21  appropriating general fund money for state or local government 
 36.22  capital programs or projects other than those described in 
 36.23  clause (1), enacted more than four years before February January 
 36.24  1 of that odd-numbered year; and the amount of general fund 
 36.25  money appropriated but not spent or otherwise obligated, and the 
 36.26  amount of bonds not issued and bond proceeds held but not 
 36.27  previously expended, encumbered, or otherwise obligated for 
 36.28  these programs and projects. 
 36.29     (b) The commissioner shall also report on general fund 
 36.30  appropriations for capital projects, bond authorizations or bond 
 36.31  proceed balances that may be canceled because projects have been 
 36.32  canceled, completed, or otherwise concluded, or because the 
 36.33  purposes for which the money was appropriated or bonds were 
 36.34  authorized or issued have been canceled, completed, or otherwise 
 36.35  concluded.  The general fund appropriations, bond authorizations 
 36.36  or bond proceed balances that are unencumbered or otherwise not 
 37.1   obligated that are reported by the commissioner under this 
 37.2   subdivision are canceled, effective July 1 of the year of the 
 37.3   report, unless specifically reauthorized by act of the 
 37.4   legislature. 
 37.5      Sec. 39.  Minnesota Statutes 2002, section 16B.24, 
 37.6   subdivision 5, is amended to read: 
 37.7      Subd. 5.  [RENTING OUT STATE PROPERTY.] (a) [AUTHORITY.] 
 37.8   The commissioner may rent out state property, real or personal, 
 37.9   that is not needed for public use, if the rental is not 
 37.10  otherwise provided for or prohibited by law.  The property may 
 37.11  not be rented out for more than five years at a time without the 
 37.12  approval of the state executive council and may never be rented 
 37.13  out for more than 25 years.  A rental agreement may provide that 
 37.14  the state will reimburse a tenant for a portion of capital 
 37.15  improvements that the tenant makes to state real property if the 
 37.16  state does not permit the tenant to renew the lease at the end 
 37.17  of the rental agreement. 
 37.18     (b) [RESTRICTIONS.] Paragraph (a) does not apply to state 
 37.19  trust fund lands, other state lands under the jurisdiction of 
 37.20  the department of natural resources, lands forfeited for 
 37.21  delinquent taxes, lands acquired under section 298.22, or lands 
 37.22  acquired under section 41.56 which are under the jurisdiction of 
 37.23  the department of agriculture.  
 37.24     (c) [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 
 37.25  Chapel, located within the boundaries of Fort Snelling State 
 37.26  Park, is available for use only on payment of a rental fee.  The 
 37.27  commissioner shall establish rental fees for both public and 
 37.28  private use.  The rental fee for private use by an organization 
 37.29  or individual must reflect the reasonable value of equivalent 
 37.30  rental space.  Rental fees collected under this section must be 
 37.31  deposited in the general fund.  
 37.32     (d)  [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 
 37.33  shall establish rental rates for all living accommodations 
 37.34  provided by the state for its employees.  Money collected as 
 37.35  rent by state agencies pursuant to this paragraph must be 
 37.36  deposited in the state treasury and credited to the general fund.
 38.1      (e)  [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 
 38.2   AGENCIES.] The commissioner may lease portions of the 
 38.3   state-owned buildings in the capitol complex, the capitol square 
 38.4   building, the health building, the Duluth government center, and 
 38.5   the building at 1246 University Avenue, St. Paul, Minnesota, to 
 38.6   state agencies and the court administrator on behalf of the 
 38.7   judicial branch of state government and charge rent on the basis 
 38.8   of space occupied.  Notwithstanding any law to the contrary, all 
 38.9   money collected as rent pursuant to the terms of this section 
 38.10  shall be deposited in the state treasury.  Money collected as 
 38.11  rent to recover the bond interest costs of a building funded 
 38.12  from the state bond proceeds fund shall be credited to the 
 38.13  general fund.  Money collected as rent to recover the 
 38.14  depreciation costs of a building funded from the state bond 
 38.15  proceeds fund and money collected as rent to recover capital 
 38.16  expenditures from capital asset preservation and replacement 
 38.17  appropriations and statewide building access appropriations 
 38.18  shall be credited to a segregated account in a special revenue 
 38.19  fund.  Fifty percent of the money credited to the account each 
 38.20  fiscal year must be transferred to the general fund.  The 
 38.21  remaining money in the account is appropriated to the 
 38.22  commissioner to be expended for asset preservation projects as 
 38.23  determined by the commissioner.  Money collected as rent to 
 38.24  recover the depreciation and interest costs of a building built 
 38.25  with other state dedicated funds shall be credited to the 
 38.26  dedicated fund which funded the original acquisition or 
 38.27  construction.  All other money received shall be credited to the 
 38.28  general services revolving fund. 
 38.29     Sec. 40.  Minnesota Statutes 2002, section 16B.35, 
 38.30  subdivision 1, is amended to read: 
 38.31     Subdivision 1.  [PERCENT OF APPROPRIATIONS FOR ART.] An 
 38.32  appropriation for the construction or alteration of any state 
 38.33  building may contain an amount not to exceed the lesser of 
 38.34  $100,000 or one percent of the total appropriation for the 
 38.35  building for the acquisition of works of art, excluding 
 38.36  landscaping, which may be an integral part of the building or 
 39.1   its grounds, attached to the building or grounds or capable of 
 39.2   being displayed in other state buildings.  If the appropriation 
 39.3   for works of art is limited by the $100,000 cap in this section, 
 39.4   the appropriation for the construction or alteration of the 
 39.5   building must be reduced to reflect the reduced amount that will 
 39.6   be spent on works of art.  Money used for this purpose is 
 39.7   available only for the acquisition of works of art to be 
 39.8   exhibited in areas of a building or its grounds accessible, on a 
 39.9   regular basis, to members of the public.  No more than ten 
 39.10  percent of the total amount available each fiscal year under 
 39.11  this subdivision may be used for administrative expenses, either 
 39.12  by the commissioner of administration or by any other entity to 
 39.13  whom the commissioner delegates administrative authority.  For 
 39.14  the purposes of this section "state building" means a building 
 39.15  the construction or alteration of which is paid for wholly or in 
 39.16  part by the state. 
 39.17     Sec. 41.  Minnesota Statutes 2002, section 16B.465, 
 39.18  subdivision 1a, is amended to read: 
 39.19     Subd. 1a.  [CREATION.] Except as provided in subdivision 4, 
 39.20  the commissioner, through the state information infrastructure, 
 39.21  shall arrange for the provision of voice, data, video, and other 
 39.22  telecommunications transmission services to state agencies.  The 
 39.23  state information infrastructure may also serve educational 
 39.24  institutions, including public schools as defined in section 
 39.25  120A.05, subdivisions 9, 11, 13, and 17, nonpublic, church or 
 39.26  religious organization schools that provide instruction in 
 39.27  compliance with sections 120A.22, 120A.24, and 120A.41, and 
 39.28  private colleges; public corporations; Indian tribal 
 39.29  governments; and state political subdivisions; and public 
 39.30  noncommercial educational television broadcast stations as 
 39.31  defined in section 129D.12, subdivision 2.  It is not a 
 39.32  telephone company for purposes of chapter 237.  The commissioner 
 39.33  may purchase, own, or lease any telecommunications network 
 39.34  facilities or equipment after first seeking bids or proposals 
 39.35  and having determined that the private sector cannot, will not, 
 39.36  or is unable to provide these services, facilities, or equipment 
 40.1   as bid or proposed in a reasonable or timely fashion consistent 
 40.2   with policy set forth in this section.  The commissioner shall 
 40.3   not resell or sublease any services or facilities to nonpublic 
 40.4   entities except to serve private schools and colleges.  The 
 40.5   commissioner has the responsibility for planning, development, 
 40.6   and operations of the state information infrastructure in order 
 40.7   to provide cost-effective telecommunications transmission 
 40.8   services to state information infrastructure users consistent 
 40.9   with the policy set forth in this section. 
 40.10     Sec. 42.  Minnesota Statutes 2002, section 16B.465, 
 40.11  subdivision 7, is amended to read: 
 40.12     Subd. 7.  [EXEMPTION.] The system is exempt from the 
 40.13  five-year limitation on contracts set by sections 16C.05, 
 40.14  subdivision 2, paragraph (a), clause (5) (b), 16C.08, 
 40.15  subdivision 3, clause (7) (5), and 16C.09, clause (6). 
 40.16     Sec. 43.  Minnesota Statutes 2002, section 16B.47, is 
 40.17  amended to read: 
 40.18     16B.47 [MICROGRAPHICS.] 
 40.19     The commissioner shall may provide micrographics services 
 40.20  and products to meet agency needs.  Within available resources, 
 40.21  the commissioner may also provide micrographic services to 
 40.22  political subdivisions.  Agency plans and programs for 
 40.23  micrographics must be submitted to and receive the approval of 
 40.24  the commissioner prior to implementation.  Upon the 
 40.25  commissioner's approval, subsidiary or independent microfilm 
 40.26  operations may be implemented in other state agencies.  The 
 40.27  commissioner may direct that copies of official state documents 
 40.28  be distributed to official state depositories on microfilm.  
 40.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 40.30  following final enactment. 
 40.31     Sec. 44.  Minnesota Statutes 2002, section 16B.48, 
 40.32  subdivision 2, is amended to read: 
 40.33     Subd. 2.  [PURPOSE OF FUNDS.] Money in the state treasury 
 40.34  credited to the general services revolving fund and money that 
 40.35  is deposited in the fund is appropriated annually to the 
 40.36  commissioner for the following purposes:  
 41.1      (1) to operate a central store and equipment service; 
 41.2      (2) to operate a central duplication and printing service; 
 41.3      (3) to operate the central mailing service, including 
 41.4   purchasing postage and related items and refunding postage 
 41.5   deposits; 
 41.6      (4) (3) to operate a documents service as prescribed by 
 41.7   section 16B.51; 
 41.8      (5) (4) to provide services for the maintenance, operation, 
 41.9   and upkeep of buildings and grounds managed by the commissioner 
 41.10  of administration; 
 41.11     (6) (5) to operate a materials handling service, including 
 41.12  interagency mail and product delivery, solid waste removal, 
 41.13  courier service, equipment rental, and vehicle and equipment 
 41.14  maintenance; 
 41.15     (7) (6) to provide analytical, statistical, and 
 41.16  organizational development services to state agencies, local 
 41.17  units of government, metropolitan and regional agencies, and 
 41.18  school districts; 
 41.19     (8) (7) to operate a records center and provide 
 41.20  micrographics products and services; and 
 41.21     (9) (8) to perform services for any other agency.  Money 
 41.22  may be expended for this purpose only when directed by the 
 41.23  governor. The agency receiving the services shall reimburse the 
 41.24  fund for their cost, and the commissioner shall make the 
 41.25  appropriate transfers when requested.  The term "services" as 
 41.26  used in this clause means compensation paid officers and 
 41.27  employees of the state government; supplies, materials, 
 41.28  equipment, and other articles and things used by or furnished to 
 41.29  an agency; and utility services and other services for the 
 41.30  maintenance, operation, and upkeep of buildings and offices of 
 41.31  the state government. 
 41.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 41.33  following final enactment. 
 41.34     Sec. 45.  Minnesota Statutes 2002, section 16C.02, 
 41.35  subdivision 6, is amended to read: 
 41.36     Subd. 6.  [CONTRACT.] "Contract" means any written 
 42.1   instrument or electronic document containing the elements of 
 42.2   offer, acceptance, and consideration to which an agency is a 
 42.3   party, including an amendment to or extension of a contract. 
 42.4      Sec. 46.  Minnesota Statutes 2002, section 16C.03, is 
 42.5   amended by adding a subdivision to read: 
 42.6      Subd. 17.  [CONTRACT EXTENSION.] The term of a contract may 
 42.7   be extended for a time longer than the time specified in this 
 42.8   chapter, up to a total term of ten years, if the commissioner, 
 42.9   in consultation with the commissioner of finance, determines 
 42.10  that the contractor will incur upfront costs under the contract 
 42.11  that cannot be recovered within a two-year period and that will 
 42.12  provide cost savings to the state and that these costs will be 
 42.13  amortized over the life of the contract. 
 42.14     Sec. 47.  [16C.045] [REPORTING OF VIOLATIONS.] 
 42.15     A state employee who discovers evidence of violation of 
 42.16  laws or rules governing state contracts is encouraged to report 
 42.17  the violation or suspected violation to the employee's 
 42.18  supervisor, the commissioner or the commissioner's designee, or 
 42.19  the legislative auditor.  The legislative auditor must report to 
 42.20  the legislative audit commission if there are multiple 
 42.21  complaints about the same agency.  The auditor's report to the 
 42.22  legislative audit commission under this section must disclose 
 42.23  only the number and type of violations alleged.  An employee 
 42.24  making a good faith report under this section is covered by 
 42.25  section 181.932, prohibiting the employer from discriminating 
 42.26  against the employee. 
 42.27     Sec. 48.  Minnesota Statutes 2002, section 16C.05, 
 42.28  subdivision 2, is amended to read: 
 42.29     Subd. 2.  [CREATION AND VALIDITY OF CONTRACTS.] (a) A 
 42.30  contract is not valid and the state is not bound by it and no 
 42.31  agency, without the prior written approval of the commissioner 
 42.32  granted pursuant to subdivision 2a, may authorize work to begin 
 42.33  on it unless: 
 42.34     (1) it has first been executed by the head of the agency or 
 42.35  a delegate who is a party to the contract; 
 42.36     (2) it has been approved by the commissioner; and 
 43.1      (3) it has been approved by the attorney general or a 
 43.2   delegate as to form and execution; 
 43.3      (4) the accounting system shows an obligation in an expense 
 43.4   budget or encumbrance for the amount of the contract liability; 
 43.5   and. 
 43.6      (5) (b) The combined contract and amendments shall must not 
 43.7   exceed five years without specific, written approval by the 
 43.8   commissioner according to established policy, procedures, and 
 43.9   standards, or unless otherwise provided for by law.  The term of 
 43.10  the original contract must not exceed two years unless the 
 43.11  commissioner determines that a longer duration is in the best 
 43.12  interest of the state.  
 43.13     (b) (c) Grants, interagency agreements, purchase orders, 
 43.14  work orders, and annual plans need not, in the discretion of the 
 43.15  commissioner and attorney general, require the signature of the 
 43.16  commissioner and/or the attorney general.  A signature is not 
 43.17  required for work orders and amendments to work orders related 
 43.18  to department of transportation contracts.  Bond purchase 
 43.19  agreements by the Minnesota public facilities authority do not 
 43.20  require the approval of the commissioner.  
 43.21     (c) (d) Amendments to contracts must entail tasks that are 
 43.22  substantially similar to those in the original contract or 
 43.23  involve tasks that are so closely related to the original 
 43.24  contract that it would be impracticable for a different 
 43.25  contractor to perform the work.  The commissioner or an agency 
 43.26  official to whom the commissioner has delegated contracting 
 43.27  authority under section 16C.03, subdivision 16, must determine 
 43.28  that an amendment would serve the interest of the state better 
 43.29  than a new contract and would cost no more. 
 43.30     (e) A fully executed copy of every contract, amendments to 
 43.31  the contract, and performance evaluations relating to the 
 43.32  contract must be kept on file at the contracting agency for a 
 43.33  time equal to that specified for contract vendors and other 
 43.34  parties in subdivision 5. 
 43.35     (f) The attorney general must periodically review and 
 43.36  evaluate a sample of state agency contracts to ensure compliance 
 44.1   with laws. 
 44.2      Sec. 49.  Minnesota Statutes 2002, section 16C.05, is 
 44.3   amended by adding a subdivision to read: 
 44.4      Subd. 2a.  [EMERGENCY AUTHORIZATION.] The commissioner may 
 44.5   grant an agency approval to authorize work to begin on a 
 44.6   contract prior to the full execution of the contract in the 
 44.7   event of an emergency as defined in section 16C.10, subdivision 
 44.8   2. 
 44.9      Sec. 50.  Minnesota Statutes 2002, section 16C.06, 
 44.10  subdivision 1, is amended to read: 
 44.11     Subdivision 1.  [PUBLICATION REQUIREMENTS.] Notices of 
 44.12  solicitations for acquisitions estimated to be more than 
 44.13  $25,000, or $100,000 in the case of a department of 
 44.14  transportation acquisition, must be publicized in a manner 
 44.15  designated by the commissioner.  To the extent practical, this 
 44.16  must include posting on a state Web site. 
 44.17     Sec. 51.  Minnesota Statutes 2002, section 16C.08, 
 44.18  subdivision 2, is amended to read: 
 44.19     Subd. 2.  [DUTIES OF CONTRACTING AGENCY.] (a) Before an 
 44.20  agency may seek approval of a professional or technical services 
 44.21  contract valued in excess of $5,000, it must certify to the 
 44.22  commissioner that provide the following: 
 44.23     (1) a description of how the proposed contract or amendment 
 44.24  is necessary and reasonable to advance the statutory mission of 
 44.25  the agency; 
 44.26     (2) a description of the agency's plan to notify firms or 
 44.27  individuals who may be available to perform the services called 
 44.28  for in the solicitation; and 
 44.29     (3) a description of the performance measures or other 
 44.30  tools that will be used to monitor and evaluate contract 
 44.31  performance. 
 44.32     (b) In addition to paragraph (a), the agency must certify 
 44.33  that: 
 44.34     (1) no current state employee is able and available to 
 44.35  perform the services called for by the contract; 
 44.36     (2) the normal competitive bidding mechanisms will not 
 45.1   provide for adequate performance of the services; 
 45.2      (3) the contractor has certified that the product of the 
 45.3   services will be original in character; 
 45.4      (4) reasonable efforts were will be made to publicize the 
 45.5   availability of the contract to the public; 
 45.6      (5) the agency has received, reviewed, and accepted a 
 45.7   detailed work plan from the contractor for performance under the 
 45.8   contract, if applicable; 
 45.9      (6) (4) the agency has developed, will develop and fully 
 45.10  intends to implement, a written plan providing for the 
 45.11  assignment of specific agency personnel to manage the contract, 
 45.12  including a monitoring and liaison function, the periodic review 
 45.13  of interim reports or other indications of past performance, and 
 45.14  the ultimate utilization of the final product of the 
 45.15  services; and 
 45.16     (7) (5) the agency will not allow the contractor to begin 
 45.17  work before the contract is fully executed unless an exception 
 45.18  under section 16C.05, subdivision 2a, has been granted by the 
 45.19  commissioner and funds are fully encumbered.; 
 45.20     (6) the contract will not establish an employment 
 45.21  relationship between the state or the agency and any persons 
 45.22  performing under the contract; and 
 45.23     (7) in the event the results of the contract work will be 
 45.24  carried out or continued by state employees upon completion of 
 45.25  the contract, the contractor is required to include state 
 45.26  employees in development and training, to the extent necessary 
 45.27  to ensure that after completion of the contract, state employees 
 45.28  can perform any ongoing work related to the same function. 
 45.29     (c) A contract establishes an employment relationship for 
 45.30  purposes of paragraph (b), clause (6), if, under federal laws 
 45.31  governing the distinction between an employee and an independent 
 45.32  contract, a person would be considered an employee. 
 45.33     Sec. 52.  Minnesota Statutes 2002, section 16C.08, 
 45.34  subdivision 3, is amended to read: 
 45.35     Subd. 3.  [PROCEDURE FOR PROFESSIONAL OR TECHNICAL SERVICES 
 45.36  CONTRACTS.] Before approving a proposed contract for 
 46.1   professional or technical services, the commissioner must 
 46.2   determine, at least, that: 
 46.3      (1) all provisions of subdivision 2 and section 16C.16 have 
 46.4   been verified or complied with; 
 46.5      (2) the agency has demonstrated that the work to be 
 46.6   performed under the contract is necessary to the agency's 
 46.7   achievement of its statutory responsibilities and there is 
 46.8   statutory authority to enter into the contract; 
 46.9      (3) the contract will not establish an employment 
 46.10  relationship between the state or the agency and any persons 
 46.11  performing under the contract; 
 46.12     (4) the contractor and agents are not employees of the 
 46.13  state; 
 46.14     (5) no agency has previously performed or contracted for 
 46.15  the performance of tasks which would be substantially duplicated 
 46.16  under the proposed contract; 
 46.17     (6) (4) the contracting agency has specified a satisfactory 
 46.18  method of evaluating and using the results of the work to be 
 46.19  performed; and 
 46.20     (7) (5) the combined contract and amendments will not 
 46.21  exceed five years, unless otherwise provided for by law.  The 
 46.22  term of the original contract must not exceed two years unless 
 46.23  the commissioner determines that a longer duration is in the 
 46.24  best interest of the state. 
 46.25     Sec. 53.  Minnesota Statutes 2002, section 16C.08, 
 46.26  subdivision 4, is amended to read: 
 46.27     Subd. 4.  [REPORTS.] (a) The commissioner shall submit to 
 46.28  the governor, the chairs of the house ways and means and senate 
 46.29  finance committees, and the legislative reference library a 
 46.30  yearly listing of all contracts for professional or technical 
 46.31  services executed.  The report must identify the contractor, 
 46.32  contract amount, duration, and services to be provided.  The 
 46.33  commissioner shall also issue yearly reports summarizing the 
 46.34  contract review activities of the department by fiscal year. 
 46.35     (b) The fiscal year report must be submitted by September 1 
 46.36  of each year and must: 
 47.1      (1) be sorted by agency and by contractor; 
 47.2      (2) show the aggregate value of contracts issued by each 
 47.3   agency and issued to each contractor; 
 47.4      (3) distinguish between contracts that are being issued for 
 47.5   the first time and contracts that are being extended; 
 47.6      (4) state the termination date of each contract; and 
 47.7      (5) identify services by commodity code, including topics 
 47.8   such as contracts for training, contracts for research and 
 47.9   opinions, and contracts for computer systems. 
 47.10     (c) Within 30 days of final completion of a contract over 
 47.11  $40,000 $50,000 covered by this subdivision, the head of the 
 47.12  agency entering into the contract must submit a one-page report 
 47.13  to the commissioner who must submit a copy to the legislative 
 47.14  reference library.  The report must:  
 47.15     (1) summarize the purpose of the contract, including why it 
 47.16  was necessary to enter into a contract; 
 47.17     (2) state the amount spent on the contract; and 
 47.18     (3) explain why this amount was a cost-effective way to 
 47.19  enable the agency to provide its services or products better or 
 47.20  more efficiently be accompanied by the performance evaluation 
 47.21  prepared according to subdivision 4a.  
 47.22     Sec. 54.  Minnesota Statutes 2002, section 16C.08, is 
 47.23  amended by adding a subdivision to read: 
 47.24     Subd. 4a.  [PERFORMANCE EVALUATION.] Upon completion of a 
 47.25  professional or technical services contract, an agency entering 
 47.26  into the contract must complete a written performance evaluation 
 47.27  of the work done under the contract.  The evaluation must 
 47.28  include an appraisal of the contractor's timeliness, quality, 
 47.29  cost, and overall performance in meeting the terms and 
 47.30  objectives of the contract.  Contractors may request copies of 
 47.31  evaluations prepared under this subdivision and may respond in 
 47.32  writing.  Contractor responses must be maintained with the 
 47.33  contract file. 
 47.34     Sec. 55.  [16C.085] [WAIVER.] 
 47.35     Notwithstanding sections 16C.08, 16C.09, 43A.047, or other 
 47.36  law to the contrary, the commissioner of administration may 
 48.1   enter into or approve a service contract for printing services 
 48.2   or services provided by the DocuComm division without 
 48.3   determining that no current state employee is able and available 
 48.4   to perform the services called for by the contract. 
 48.5      Sec. 56.  Minnesota Statutes 2002, section 16C.10, 
 48.6   subdivision 7, is amended to read: 
 48.7      Subd. 7.  [REVERSE AUCTION.] (a) For the purpose of this 
 48.8   subdivision, "reverse auction" means a purchasing process in 
 48.9   which vendors compete to provide goods or engineering design or 
 48.10  computer services at the lowest selling price in an open and 
 48.11  interactive environment. 
 48.12     (b) The provisions of section 16C.06, subdivisions 2 and 3, 
 48.13  do not apply when the commissioner determines that a reverse 
 48.14  auction is the appropriate purchasing process.  
 48.15     Sec. 57.  Minnesota Statutes 2002, section 16D.08, 
 48.16  subdivision 2, is amended to read: 
 48.17     Subd. 2.  [POWERS.] (a) In addition to the collection 
 48.18  remedies available to private collection agencies in this state, 
 48.19  the commissioner, with legal assistance from the attorney 
 48.20  general, may utilize any statutory authority granted to a 
 48.21  referring agency for purposes of collecting debt owed to that 
 48.22  referring agency.  The commissioner may also delegate to the 
 48.23  enterprise use the tax collection remedies in sections 270.06, 
 48.24  clauses (7) and (17), excluding the power to subpoena witnesses; 
 48.25  270.66;, 270.67, subdivisions 2 and 4, 270.69, excluding 
 48.26  subdivisions 7 and 13; 270.70, excluding subdivision 14; 
 48.27  270.7001 to 270.72;, and 290.92, subdivision 23, except that a 
 48.28  continuous wage levy under section 290.92, subdivision 23, is 
 48.29  only effective for 70 days, unless no competing wage 
 48.30  garnishments, executions, or levies are served within the 70-day 
 48.31  period, in which case a wage levy is continuous until a 
 48.32  competing garnishment, execution, or levy is served in the 
 48.33  second or a succeeding 70-day period, in which case a continuous 
 48.34  wage levy is effective for the remainder of that period.  A 
 48.35  debtor may take advantage of any administrative or appeal rights 
 48.36  contained in the listed sections.  For administrative and appeal 
 49.1   rights for nontax debts, references to administrative appeals or 
 49.2   to the taxpayer rights advocate shall be construed to be 
 49.3   references to the case reviewer, references to tax court shall 
 49.4   be construed to mean district court, and offers in compromise 
 49.5   shall be submitted to the referring agency.  A debtor who 
 49.6   qualifies for cancellation of collection costs under section 
 49.7   16D.11, subdivision 3, clause (1), can apply to the commissioner 
 49.8   for reduction or release of a continuous wage levy, if the 
 49.9   debtor establishes that the debtor needs all or a portion of the 
 49.10  wages being levied upon to pay for essential living expenses, 
 49.11  such as food, clothing, shelter, medical care, or expenses 
 49.12  necessary for maintaining employment.  The commissioner's 
 49.13  determination not to reduce or release a continuous wage levy is 
 49.14  appealable to district court.  The word "tax" or "taxes" when 
 49.15  used in the tax collection statutes listed in this subdivision 
 49.16  also means debts referred under this chapter. 
 49.17     (b) For debts other than state taxes, child support, or 
 49.18  student loans, before any of the tax collection remedies listed 
 49.19  in this subdivision can be used, except for the remedies in 
 49.20  section 270.06, clauses (7) and (17), if the referring agency 
 49.21  has not already obtained a judgment or filed a lien, the 
 49.22  commissioner must first obtain a judgment against the debtor.  
 49.23  For student loans when the referring agency has not obtained a 
 49.24  judgment or filed a lien, Before using the tax collection 
 49.25  remedies listed in this subdivision, except for the remedies in 
 49.26  section 270.06, clauses (7) and (17), the commissioner shall 
 49.27  give the debtor 30 days' notice in writing, which may be served 
 49.28  in any manner permitted in section 270.68 for service of a 
 49.29  summons and complaint.  The notice must advise the debtor of the 
 49.30  debtor's right to request that the commissioner commence a court 
 49.31  action, and that if no such request is made within 30 days after 
 49.32  service of the notice, the commissioner may use these tax 
 49.33  collection remedies.  If a timely request is made, the 
 49.34  commissioner shall obtain a judgment before using these tax 
 49.35  collection remedies. notice and demand for payment of the amount 
 49.36  due must be given to the person liable for the payment or 
 50.1   collection of the debt at least 30 days prior to the use of the 
 50.2   remedies.  The notice must be sent to the person's last known 
 50.3   address and must include a brief statement that sets forth in 
 50.4   simple and nontechnical terms the amount and source of the debt, 
 50.5   the nature of the available collection remedies, and remedies 
 50.6   available to the debtor. 
 50.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 50.8   following final enactment for all debts referred, whether 
 50.9   referred prior to, on, or after the day following final 
 50.10  enactment. 
 50.11     Sec. 58.  Minnesota Statutes 2002, section 16E.01, 
 50.12  subdivision 3, is amended to read: 
 50.13     Subd. 3.  [DUTIES.] (a) The office shall: 
 50.14     (1) coordinate the efficient and effective use of available 
 50.15  federal, state, local, and private resources to develop 
 50.16  statewide information and communications technology and its 
 50.17  infrastructure; 
 50.18     (2) review state agency and intergovernmental information 
 50.19  and communications systems development efforts involving state 
 50.20  or intergovernmental funding, including federal funding, provide 
 50.21  information to the legislature regarding projects reviewed, and 
 50.22  recommend projects for inclusion in the governor's budget under 
 50.23  section 16A.11; 
 50.24     (3) encourage cooperation and collaboration among state and 
 50.25  local governments in developing intergovernmental communication 
 50.26  and information systems, and define the structure and 
 50.27  responsibilities of the information policy council; 
 50.28     (4) cooperate and collaborate with the legislative and 
 50.29  judicial branches in the development of information and 
 50.30  communications systems in those branches; 
 50.31     (5) continue the development of North Star, the state's 
 50.32  official comprehensive online service and information 
 50.33  initiative; 
 50.34     (6) promote and collaborate with the state's agencies in 
 50.35  the state's transition to an effectively competitive 
 50.36  telecommunications market; 
 51.1      (7) collaborate with entities carrying out education and 
 51.2   lifelong learning initiatives to assist Minnesotans in 
 51.3   developing technical literacy and obtaining access to ongoing 
 51.4   learning resources; 
 51.5      (8) promote and coordinate public information access and 
 51.6   network initiatives, consistent with chapter 13, to connect 
 51.7   Minnesota's citizens and communities to each other, to their 
 51.8   governments, and to the world; 
 51.9      (9) promote and coordinate electronic commerce initiatives 
 51.10  to ensure that Minnesota businesses and citizens can 
 51.11  successfully compete in the global economy; 
 51.12     (10) promote and coordinate the regular and periodic 
 51.13  reinvestment in the core information and communications 
 51.14  technology infrastructure so that state and local government 
 51.15  agencies can effectively and efficiently serve their customers; 
 51.16     (11) facilitate the cooperative development of standards 
 51.17  for information systems, electronic data practices and privacy, 
 51.18  and electronic commerce among international, national, state, 
 51.19  and local public and private organizations; and 
 51.20     (12) work with others to avoid unnecessary duplication of 
 51.21  existing services provided by other public and private 
 51.22  organizations while building on the existing governmental, 
 51.23  educational, business, health care, and economic development 
 51.24  infrastructures. 
 51.25     (b) The commissioner of administration in consultation with 
 51.26  the commissioner of finance may determine that it is 
 51.27  cost-effective for agencies to develop and use shared 
 51.28  information and communications technology systems for the 
 51.29  delivery of electronic government services.  This determination 
 51.30  may be made if an agency proposes a new system that duplicates 
 51.31  an existing system, a system in development, or a system being 
 51.32  proposed by another agency.  The commissioner of administration 
 51.33  shall establish reimbursement rates in cooperation with the 
 51.34  commissioner of finance to be billed to agencies and other 
 51.35  governmental entities sufficient to cover the actual 
 51.36  development, operating, maintenance, and administrative costs of 
 52.1   the shared systems.  The methodology for billing may include the 
 52.2   use of interagency agreements, or other means as allowed by law. 
 52.3      Sec. 59.  Minnesota Statutes 2002, section 16E.07, 
 52.4   subdivision 9, is amended to read: 
 52.5      Subd. 9.  [AGGREGATION OF SERVICE DEMAND.] The office shall 
 52.6   identify opportunities to aggregate demand for technical 
 52.7   services required by government units for online activities and 
 52.8   may contract with governmental or nongovernmental entities to 
 52.9   provide services.  These contracts are not subject to the 
 52.10  requirements of chapters 16B and 16C, except sections 16C.04, 
 52.11  16C.07, 16C.08, and 16C.09. 
 52.12     Sec. 60.  Minnesota Statutes 2002, section 43A.17, 
 52.13  subdivision 9, is amended to read: 
 52.14     Subd. 9.  [POLITICAL SUBDIVISION COMPENSATION LIMIT.] (a) 
 52.15  The salary and the value of all other forms of compensation of a 
 52.16  person employed by a statutory or home rule charter city, 
 52.17  county, town, metropolitan or regional agency, or other 
 52.18  political subdivision of this state, excluding a school 
 52.19  district, or employed under section 422A.03, may not exceed 95 
 52.20  percent of the salary of the governor as set under section 
 52.21  15A.082, except as provided in this subdivision.  For purposes 
 52.22  of this subdivision, "political subdivision of this state" 
 52.23  includes a statutory or home rule charter city, county, town, 
 52.24  metropolitan or regional agency, or other political subdivision, 
 52.25  but does not include a hospital, clinic, or health maintenance 
 52.26  organization owned by such a governmental unit.  
 52.27     (b) Deferred compensation and payroll allocations to 
 52.28  purchase an individual annuity contract for an employee are 
 52.29  included in determining the employee's salary.  Other forms of 
 52.30  compensation which shall be included to determine an employee's 
 52.31  total compensation are all other direct and indirect items of 
 52.32  compensation which are not specifically excluded by this 
 52.33  subdivision.  Other forms of compensation which shall not be 
 52.34  included in a determination of an employee's total compensation 
 52.35  for the purposes of this subdivision are: 
 52.36     (1) employee benefits that are also provided for the 
 53.1   majority of all other full-time employees of the political 
 53.2   subdivision, vacation and sick leave allowances, health and 
 53.3   dental insurance, disability insurance, term life insurance, and 
 53.4   pension benefits or like benefits the cost of which is borne by 
 53.5   the employee or which is not subject to tax as income under the 
 53.6   Internal Revenue Code of 1986; 
 53.7      (2) dues paid to organizations that are of a civic, 
 53.8   professional, educational, or governmental nature; and 
 53.9      (3) reimbursement for actual expenses incurred by the 
 53.10  employee which the governing body determines to be directly 
 53.11  related to the performance of job responsibilities, including 
 53.12  any relocation expenses paid during the initial year of 
 53.13  employment. 
 53.14     The value of other forms of compensation shall be the 
 53.15  annual cost to the political subdivision for the provision of 
 53.16  the compensation.  
 53.17     (c) The salary of a medical doctor or doctor of osteopathy 
 53.18  occupying a position that the governing body of the political 
 53.19  subdivision has determined requires an M.D. or D.O. degree is 
 53.20  excluded from the limitation in this subdivision.  
 53.21     (d) The commissioner may increase the limitation in this 
 53.22  subdivision for a position that the commissioner has determined 
 53.23  requires special expertise necessitating a higher salary to 
 53.24  attract or retain a qualified person.  The commissioner shall 
 53.25  review each proposed increase giving due consideration to salary 
 53.26  rates paid to other persons with similar responsibilities in the 
 53.27  state and nation.  The commissioner may not increase the 
 53.28  limitation until the commissioner has presented the proposed 
 53.29  increase to the legislative coordinating commission and received 
 53.30  the commission's recommendation on it.  The recommendation is 
 53.31  advisory only.  If the commission does not give its 
 53.32  recommendation on a proposed increase within 30 days from its 
 53.33  receipt of the proposal, the commission is deemed to have 
 53.34  recommended approval made no recommendation. 
 53.35     Sec. 61.  [43A.311] [DRUG PURCHASING PROGRAM.] 
 53.36     The commissioner of employee relations, in conjunction with 
 54.1   the commissioner of human services and other state agencies, 
 54.2   shall evaluate whether participation in a multistate or 
 54.3   multiagency drug purchasing program can reduce costs or improve 
 54.4   the operations of the drug benefit programs administered by the 
 54.5   department and other state agencies.  The commissioner and other 
 54.6   state agencies may enter into a contract with a vendor or other 
 54.7   states for purposes of participating in a multistate or 
 54.8   multiagency drug purchasing program. 
 54.9      Sec. 62.  Minnesota Statutes 2002, section 69.772, 
 54.10  subdivision 2, is amended to read: 
 54.11     Subd. 2.  [DETERMINATION OF ACCRUED LIABILITY.] Each 
 54.12  firefighters' relief association which pays a service pension 
 54.13  when a retiring firefighter meets the minimum requirements for 
 54.14  entitlement to a service pension specified in section 424A.02 
 54.15  and which in its articles of incorporation or bylaws requires 
 54.16  service credit for a period of service of at least 20 years of 
 54.17  active service for a totally nonforfeitable service pension 
 54.18  shall determine the accrued liability of the special fund of the 
 54.19  firefighters' relief association relative to each active or 
 54.20  deferred member of the relief association, calculated 
 54.21  individually using the following table: 
 54.22           Cumulative                       Accrued
 54.23              Year                         Liability
 54.24          .............                  .............
 54.25                1                            $  60 
 54.26                2                              124 
 54.27                3                              190 
 54.28                4                              260 
 54.29                5                              334 
 54.30                6                              410 
 54.31                7                              492 
 54.32                8                              576 
 54.33                9                              666 
 54.34               10                              760 
 54.35               11                              858 
 54.36               12                              962 
 55.1                13                             1070 
 55.2                14                             1184 
 55.3                15                             1304 
 55.4                16                             1428 
 55.5                17                             1560 
 55.6                18                             1698 
 55.7                19                             1844 
 55.8                20                             2000 
 55.9                21 and thereafter               100 additional
 55.10                                                   per year
 55.11     As set forth in the table the accrued liability for each 
 55.12  member or deferred member of the relief association corresponds 
 55.13  to the cumulative years of active service to the credit of the 
 55.14  member.  The accrued liability of the special fund for each 
 55.15  active or deferred member is determined by multiplying the 
 55.16  accrued liability from the chart by the ratio of the lump sum 
 55.17  service pension amount currently provided for in the bylaws of 
 55.18  the relief association to a service pension of $100 per year of 
 55.19  service.  If a member has fractional service as of December 31, 
 55.20  the figure for service credit to be used for the determination 
 55.21  of accrued liability pursuant to this section shall be rounded 
 55.22  to the nearest full year of service credit.  The total accrued 
 55.23  liability of the special fund as of December 31 shall be the sum 
 55.24  of the accrued liability attributable to each active or deferred 
 55.25  member of the relief association.  
 55.26     To the extent that the state auditor considers it to be 
 55.27  necessary or practical, the state auditor may specify and issue 
 55.28  procedures, forms, or mathematical tables for use in performing 
 55.29  the calculations of the accrued liability for deferred members 
 55.30  pursuant to this subdivision. 
 55.31     Sec. 63.  Minnesota Statutes 2002, section 115A.929, is 
 55.32  amended to read: 
 55.33     115A.929 [FEES; ACCOUNTING.] 
 55.34     Each political subdivision that provides for solid waste 
 55.35  management shall account for all revenue collected from waste 
 55.36  management fees, together with interest earned on revenue from 
 56.1   the fees, separately from other revenue collected by the 
 56.2   political subdivision and shall report revenue collected from 
 56.3   the fees and use of the revenue separately from other revenue 
 56.4   and use of revenue in any required financial report or audit.  
 56.5   Each political subdivision must file with the director, on or 
 56.6   before June 30 annually, the separate report of all revenue 
 56.7   collected from waste management fees, together with interest on 
 56.8   revenue from the fees, for the previous year.  For the purposes 
 56.9   of this section, "waste management fees" means: 
 56.10     (1) all fees, charges, and surcharges collected under 
 56.11  sections 115A.919, 115A.921, and 115A.923; 
 56.12     (2) all tipping fees collected at waste management 
 56.13  facilities owned or operated by the political subdivision; 
 56.14     (3) all charges imposed by the political subdivision for 
 56.15  waste collection and management services; and 
 56.16     (4) any other fees, charges, or surcharges imposed on waste 
 56.17  or for the purpose of waste management, whether collected 
 56.18  directly from generators or indirectly through property taxes or 
 56.19  as part of utility or other charges for services provided by the 
 56.20  political subdivision. 
 56.21     Sec. 64.  Minnesota Statutes 2002, section 116J.8771, is 
 56.22  amended to read: 
 56.23     116J.8771 [WAIVER.] 
 56.24     The capital access program is exempt from section 16C.05, 
 56.25  subdivision 2, paragraph (a), clause (5) (b). 
 56.26     Sec. 65.  Minnesota Statutes 2002, section 197.608, is 
 56.27  amended to read: 
 56.28     197.608 [VETERANS SERVICE OFFICE GRANT PROGRAM.] 
 56.29     Subdivision 1.  [GRANT PROGRAM.] A veterans service office 
 56.30  grant program is established to be administered by the 
 56.31  commissioner of veterans affairs consisting of grants to 
 56.32  counties to enable them to enhance the effectiveness of their 
 56.33  veterans service offices. 
 56.34     Subd. 2.  [RULE DEVELOPMENT.] The commissioner of veterans 
 56.35  affairs shall consult with the Minnesota association of county 
 56.36  veterans service officers in formulating rules to implement the 
 57.1   grant program.  
 57.2      Subd. 2a.  [GRANT CYCLE.] Counties may become eligible to 
 57.3   receive grants on a three-year rotating basis according to a 
 57.4   schedule to be developed and announced in advance by the 
 57.5   commissioner.  The schedule must list no more than one-third of 
 57.6   the counties in each year of the three-year cycle.  A county may 
 57.7   be considered for a grant only in the year of its listing in the 
 57.8   schedule. 
 57.9      Subd. 3.  [ELIGIBILITY.] (a) To be eligible for a grant 
 57.10  under this program, a county must:  
 57.11     (1) employ a county veterans service officer as authorized 
 57.12  by sections 197.60 and 197.606, who is certified to serve in 
 57.13  this position by the commissioner of veterans affairs;. 
 57.14     (2) submit a written plan for the proposed expenditures to 
 57.15  enhance the functioning of the county veterans service office in 
 57.16  accordance with the program rules; and 
 57.17     (3) apply for the grant according to procedures to be 
 57.18  established for this program by the commissioner and receive 
 57.19  written approval from the commissioner for the grant in advance 
 57.20  of making the proposed expenditures. 
 57.21     (b) A county that employs a newly hired county veterans 
 57.22  service officer who is serving an initial probationary period 
 57.23  and who has not been certified by the commissioner is eligible 
 57.24  to receive a grant under subdivision 2a. 
 57.25     (c) Except for the situation described in paragraph (b), a 
 57.26  county whose veterans service officer does not receive 
 57.27  certification during any year of the three-year cycle is not 
 57.28  eligible to receive a grant during the remainder of that cycle 
 57.29  or the next three-year cycle. 
 57.30     Subd. 4.  [GRANT APPLICATION PROCESS.] (a) A grant 
 57.31  application must be submitted to the department of veterans 
 57.32  affairs according to procedures to be established by the 
 57.33  commissioner.  The grant application must include a specific 
 57.34  description of the plan for enhancing the operation of the 
 57.35  county veterans service office. The commissioner shall determine 
 57.36  the process for awarding grants.  A grant may be used only for 
 58.1   the purpose of enhancing the operations of the county veterans 
 58.2   service office. 
 58.3      (b) The commissioner shall provide a list of qualifying 
 58.4   uses for grant expenditures as developed in subdivision 5 and 
 58.5   shall approve a grant application only if it meets the criteria 
 58.6   for eligibility as established and announced by the commissioner 
 58.7   for a qualifying use and if there are sufficient funds remaining 
 58.8   in the grant program to cover the full amount of the grant.  The 
 58.9   commissioner may request modification of a plan.  If the 
 58.10  commissioner rejects a grant application, written reasons for 
 58.11  the rejection must be provided to the applicant county and the 
 58.12  county may modify the application and resubmit it. 
 58.13     Subd. 5.  [QUALIFYING USES.] The commissioner of veterans 
 58.14  affairs shall determine whether the plan specified in the grant 
 58.15  application will enable the applicant county to enhance the 
 58.16  effectiveness of its county veterans office. 
 58.17     Notwithstanding subdivision 3, clause (1), a county may 
 58.18  apply for and use a grant for the training and education 
 58.19  required by the commissioner for a newly employed county 
 58.20  veterans service officer's certificate, or for the continuing 
 58.21  education of other staff consult with the Minnesota association 
 58.22  of county veterans service officers in developing a list of 
 58.23  qualifying uses for grants awarded under this program. 
 58.24     Subd. 6.  [GRANT AMOUNT.] The amount of each grant must be 
 58.25  determined by the commissioner of veterans affairs, and may not 
 58.26  exceed the lesser of: 
 58.27     (1) the amount specified in the grant application to be 
 58.28  expended on the plan for enhancing the effectiveness of the 
 58.29  county veterans service office; or 
 58.30     (2) the county's share of the total funds available under 
 58.31  the program, determined in the following manner: 
 58.32     (i) (1) $1,400, if the county's veteran population is less 
 58.33  than 1,000, the county's grant share shall be $2,000; 
 58.34     (ii) (2) $2,800, if the county's veteran population is 
 58.35  1,000 or more but less than 3,000, the county's grant share 
 58.36  shall be $4,000; 
 59.1      (iii) (3) $4,200, if the county's veteran population is 
 59.2   3,000 or more but less then 10,000, the county's grant share 
 59.3   shall be $6,000; or 
 59.4      (iv) (4) $5,600, if the county's veteran population is 
 59.5   10,000 or more, the county's grant share shall be $8,000. 
 59.6      In any year, only one-half of the counties in each of the 
 59.7   four veteran population categories (i) to (iv) may be awarded 
 59.8   grants.  Grants shall be awarded on a first-come first-served 
 59.9   basis to counties submitting applications which meet the 
 59.10  commissioner's criteria as established in the rules.  Any county 
 59.11  not receiving a grant in any given year shall receive priority 
 59.12  consideration for a grant the following year.  
 59.13     In any year, after a period of time to be determined by the 
 59.14  commissioner, any amounts remaining from undistributed county 
 59.15  grant shares may be reallocated to the other counties which have 
 59.16  submitted qualifying application. 
 59.17     The veteran population of each county shall be determined 
 59.18  by the figure supplied by the United States Department of 
 59.19  Veterans Affairs, as adopted by the commissioner. 
 59.20     Subd. 7.  [RECAPTURE.] If a county fails to use the grant 
 59.21  for the qualified use approved by the commissioner, the 
 59.22  commissioner shall seek recovery of the grant from the county 
 59.23  and the county must repay the grant amount. 
 59.24     Sec. 66.  Minnesota Statutes 2002, section 237.49, is 
 59.25  amended to read: 
 59.26     237.49 [COMBINED LOCAL ACCESS SURCHARGE.] 
 59.27     Each local telephone company shall collect from each 
 59.28  subscriber an amount per telephone access line representing the 
 59.29  total of the surcharges required under sections 237.52, 237.70, 
 59.30  and 403.11.  Amounts collected must be remitted to the 
 59.31  department of administration commissioner of public safety in 
 59.32  the manner prescribed in section 403.11.  The department of 
 59.33  administration commissioner of public safety shall divide the 
 59.34  amounts received proportional to the individual surcharges and 
 59.35  deposit them in the appropriate accounts.  The commissioner of 
 59.36  public safety may recover from the agencies receiving the 
 60.1   surcharges the personnel and administrative costs to collect and 
 60.2   distribute the surcharge.  A company or the billing agent for a 
 60.3   company shall list the surcharges as one amount on a billing 
 60.4   statement sent to a subscriber. 
 60.5      Sec. 67.  Minnesota Statutes 2002, section 237.52, 
 60.6   subdivision 3, is amended to read: 
 60.7      Subd. 3.  [COLLECTION.] Every telephone company or 
 60.8   communications carrier that provides service capable of 
 60.9   originating a telecommunications relay call, including cellular 
 60.10  communications and other nonwire access services, in this state 
 60.11  shall collect the charges established by the commission under 
 60.12  subdivision 2 and transfer amounts collected to the commissioner 
 60.13  of administration public safety in the same manner as provided 
 60.14  in section 403.11, subdivision 1, paragraph (d).  The 
 60.15  commissioner of administration public safety must deposit the 
 60.16  receipts in the fund established in subdivision 1. 
 60.17     Sec. 68.  Minnesota Statutes 2002, section 237.701, 
 60.18  subdivision 1, is amended to read: 
 60.19     Subdivision 1.  [FUND CREATED; AUTHORIZED EXPENDITURES.] 
 60.20  The telephone assistance fund is created as a separate account 
 60.21  in the state treasury to consist of amounts received by 
 60.22  the department of administration commissioner of public safety 
 60.23  representing the surcharge authorized by section 237.70, 
 60.24  subdivision 6, and amounts earned on the fund assets.  Money in 
 60.25  the fund may be used only for: 
 60.26     (1) reimbursement to telephone companies for expenses and 
 60.27  credits allowed in section 237.70, subdivision 7, paragraph (d), 
 60.28  clause (5); 
 60.29     (2) reimbursement of the administrative expenses of the 
 60.30  department of human services to implement sections 237.69 to 
 60.31  237.71, not to exceed $314,000 annually; 
 60.32     (3) reimbursement of the administrative expenses of the 
 60.33  commission not to exceed $25,000 annually; and 
 60.34     (4) reimbursement of the statewide indirect cost of the 
 60.35  commission.  
 60.36     Sec. 69.  Minnesota Statutes 2002, section 240.03, is 
 61.1   amended to read: 
 61.2      240.03 [COMMISSION POWERS AND DUTIES.] 
 61.3      The commission has the following powers and duties:  
 61.4      (1) to regulate horse racing in Minnesota to ensure that it 
 61.5   is conducted in the public interest; 
 61.6      (2) to issue licenses as provided in this chapter; 
 61.7      (3) to enforce all laws and rules governing horse racing; 
 61.8      (4) to collect and distribute all taxes provided for in 
 61.9   this chapter; 
 61.10     (5) to conduct necessary investigations and inquiries and 
 61.11  compel the submission of information, documents, and records it 
 61.12  deems necessary to carry out its duties; 
 61.13     (6) to supervise the conduct of pari-mutuel betting on 
 61.14  horse racing; 
 61.15     (7) to employ and supervise personnel under this chapter; 
 61.16     (8) to determine the number of racing days to be held in 
 61.17  the state and at each licensed racetrack; and 
 61.18     (9) to take all necessary steps to ensure the integrity of 
 61.19  racing in Minnesota.; and 
 61.20     (10) to impose fees on the racing and card playing 
 61.21  industries sufficient to recover the operating costs of the 
 61.22  commission with the approval of the legislature according to 
 61.23  section 16A.1283.  Notwithstanding section 16A.1283, when the 
 61.24  legislature is not in session, the commissioner of finance may 
 61.25  grant interim approval for any new fees or adjustments to 
 61.26  existing fees that are not statutorily specified, until such 
 61.27  time as the legislature reconvenes and acts upon the new fees or 
 61.28  adjustments.  As part of its biennial budget request, the 
 61.29  commission must propose changes to its fees that will be 
 61.30  sufficient to recover the operating costs of the commission.  
 61.31     Sec. 70.  Minnesota Statutes 2002, section 240.10, is 
 61.32  amended to read: 
 61.33     240.10 [LICENSE FEES.] 
 61.34     The fee for a class A license is $10,000 $253,000 per year 
 61.35  and must be remitted on July 1.  The fee for a class B license 
 61.36  is $100 $500 for each assigned racing day on which racing is 
 62.1   actually conducted, and $50 $100 for each day on which 
 62.2   simulcasting is authorized and actually takes place, plus 
 62.3   $10,000 per year if the class B license includes authorization 
 62.4   to operate a card club must be remitted on July 1.  Included 
 62.5   herein are all days assigned to be conducted after January 1, 
 62.6   2003.  The fee for a class D license is $50 for each assigned 
 62.7   racing day on which racing is actually conducted.  Fees imposed 
 62.8   on class B and class D licenses must be paid to the commission 
 62.9   at a time and in a manner as provided by rule of the commission. 
 62.10     The commission shall by rule establish an annual license 
 62.11  fee for each occupation it licenses under section 240.08 but no 
 62.12  annual fee for a class C license may exceed $100.  
 62.13     License fee payments received must be paid by the 
 62.14  commission to the state treasurer for deposit in the general 
 62.15  fund. 
 62.16     Sec. 71.  Minnesota Statutes 2002, section 240.15, 
 62.17  subdivision 6, is amended to read: 
 62.18     Subd. 6.  [DISPOSITION OF PROCEEDS; ACCOUNT.] The 
 62.19  commission shall distribute all money received under this 
 62.20  section, and all money received from license fees and fines it 
 62.21  collects, as follows: according to this subdivision.  All money 
 62.22  designated for deposit in the Minnesota breeders fund must be 
 62.23  paid into that fund for distribution under section 240.18 except 
 62.24  that all money generated by full racing card simulcasts must be 
 62.25  distributed as provided in section 240.18, subdivisions 2, 
 62.26  paragraph (d), clauses (1), (2), and (3); and 3.  Revenue from 
 62.27  an admissions tax imposed under subdivision 1 must be paid to 
 62.28  the local unit of government at whose request it was imposed, at 
 62.29  times and in a manner the commission determines.  All other 
 62.30  revenues Taxes received under this section by the commission, 
 62.31  and all license fees, fines, and other revenue it receives, and 
 62.32  fines collected under section 240.22 must be paid to the state 
 62.33  treasurer for deposit in the general fund.  All revenues from 
 62.34  licenses and other fees imposed by the commission must be 
 62.35  deposited in the state treasury and credited to a racing and 
 62.36  card playing regulation account in the special revenue fund.  
 63.1   Receipts in this account are available for the operations of the 
 63.2   commission up to the amount authorized in biennial 
 63.3   appropriations from the legislature. 
 63.4      Sec. 72.  Minnesota Statutes 2002, section 240.155, 
 63.5   subdivision 1, is amended to read: 
 63.6      Subdivision 1.  [REIMBURSEMENT ACCOUNT CREDIT.] Money 
 63.7   received by the commission as reimbursement for the costs of 
 63.8   services provided by assistant veterinarians, stewards, and 
 63.9   medical testing of horses must be deposited in the state 
 63.10  treasury and credited to a racing reimbursement account, except 
 63.11  as provided under subdivision 2.  Receipts are appropriated to 
 63.12  the commission to pay the costs of providing the services. 
 63.13     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 63.14  following final enactment. 
 63.15     Sec. 73.  Minnesota Statutes 2002, section 240A.03, 
 63.16  subdivision 10, is amended to read: 
 63.17     Subd. 10.  [USE AGREEMENTS AND FEES.] The commission may 
 63.18  lease, license, or enter into agreements and may fix, alter, 
 63.19  charge, and collect rentals, fees, and charges to persons for 
 63.20  the use, occupation, and availability of part or all of any 
 63.21  premises, property, or facilities under its ownership, 
 63.22  operation, or control.  Fees charged by the commission are not 
 63.23  subject to section 16A.1285.  The commission may also impose 
 63.24  other fees it deems appropriate with the approval of the 
 63.25  legislature according to section 16A.1283.  Notwithstanding 
 63.26  section 16A.1283, when the legislature is not in session, the 
 63.27  commissioner of finance may grant interim approval of the fees, 
 63.28  until such time as the legislature reconvenes and acts upon the 
 63.29  fees.  A use agreement may provide that the other contracting 
 63.30  party has exclusive use of the premises at the times agreed upon.
 63.31     Sec. 74.  Minnesota Statutes 2002, section 240A.04, is 
 63.32  amended to read: 
 63.33     240A.04 [PROMOTION AND DEVELOPMENT OF AMATEUR SPORTS.] 
 63.34     In addition to the powers and duties granted under section 
 63.35  240A.03, the commission shall may:  
 63.36     (1) promote the development of olympic training centers; 
 64.1      (2) promote physical fitness by promoting participation in 
 64.2   sports; 
 64.3      (3) develop, foster, and coordinate physical fitness 
 64.4   services and programs; 
 64.5      (4) sponsor amateur sport workshops, clinics, and 
 64.6   conferences; 
 64.7      (5) provide recognition for outstanding developments, 
 64.8   achievements, and contributions to amateur sports; 
 64.9      (6) stimulate and promote amateur sport research; 
 64.10     (7) collect, disseminate, and communicate amateur sport 
 64.11  information; 
 64.12     (8) promote amateur sport and physical fitness programs in 
 64.13  schools and local communities; 
 64.14     (9) develop programs to promote personal health and 
 64.15  physical fitness by participation in amateur sports in 
 64.16  cooperation with medical, dental, sports medicine, and similar 
 64.17  professional societies; 
 64.18     (10) promote the development of recreational amateur sport 
 64.19  opportunities and activities in the state, including the means 
 64.20  of facilitating acquisition, financing, construction, and 
 64.21  rehabilitation of sports facilities for the holding of amateur 
 64.22  sporting events; 
 64.23     (11) promote national and international amateur sport 
 64.24  competitions and events; 
 64.25     (12) sanction or sponsor amateur sport competition; 
 64.26     (13) take membership in regional or national amateur sports 
 64.27  associations or organizations; and 
 64.28     (14) promote the mainstreaming and normalization of people 
 64.29  with physical disabilities and visual and hearing impairments in 
 64.30  amateur sports. 
 64.31     Sec. 75.  Minnesota Statutes 2002, section 240A.06, 
 64.32  subdivision 1, is amended to read: 
 64.33     Subdivision 1.  [SPONSORSHIP REQUIRED.] The commission 
 64.34  shall may sponsor and sanction a series of statewide amateur 
 64.35  athletic games patterned after the winter and summer Olympic 
 64.36  Games, with variations as required by facilities, equipment, and 
 65.1   expertise, and as necessary to include people with physical 
 65.2   disabilities and visual and hearing impairments.  The games may 
 65.3   be held annually beginning in 1989, if money and facilities are 
 65.4   available, unless the time of the games would conflict with 
 65.5   other sporting events as the commission determines.  
 65.6      Sec. 76.  Minnesota Statutes 2002, section 256B.435, 
 65.7   subdivision 2a, is amended to read: 
 65.8      Subd. 2a.  [DURATION AND TERMINATION OF CONTRACTS.] (a) All 
 65.9   contracts entered into under this section are for a term of one 
 65.10  year.  Either party may terminate this contract at any time 
 65.11  without cause by providing 90 calendar days' advance written 
 65.12  notice to the other party.  Notwithstanding section 16C.05, 
 65.13  subdivisions 2, paragraph (a) (b), and 5, if neither party 
 65.14  provides written notice of termination, the contract shall be 
 65.15  renegotiated for additional one-year terms or the terms of the 
 65.16  existing contract will be extended for one year.  The provisions 
 65.17  of the contract shall be renegotiated annually by the parties 
 65.18  prior to the expiration date of the contract.  The parties may 
 65.19  voluntarily renegotiate the terms of the contract at any time by 
 65.20  mutual agreement. 
 65.21     (b) If a nursing facility fails to comply with the terms of 
 65.22  a contract, the commissioner shall provide reasonable notice 
 65.23  regarding the breach of contract and a reasonable opportunity 
 65.24  for the facility to come into compliance.  If the facility fails 
 65.25  to come into compliance or to remain in compliance, the 
 65.26  commissioner may terminate the contract.  If a contract is 
 65.27  terminated, provisions of section 256B.48, subdivision 1a, shall 
 65.28  apply. 
 65.29     Sec. 77.  Minnesota Statutes 2002, section 268.186, is 
 65.30  amended to read: 
 65.31     268.186 [RECORDS.] 
 65.32     (a) Each employer shall keep true and accurate records for 
 65.33  the periods of time and containing the information the 
 65.34  commissioner may require.  For the purpose of administering this 
 65.35  chapter, the commissioner has the power to examine, or cause to 
 65.36  be supplied or copied, any books, correspondence, papers, 
 66.1   records, or memoranda that are relevant, whether the books, 
 66.2   correspondence, papers, records, or memoranda are the property 
 66.3   of or in the possession of the employer or any other person at 
 66.4   any reasonable time and as often as may be necessary. 
 66.5      (b) The commissioner may make summaries, compilations, 
 66.6   photographs, duplications, or reproductions of any records, or 
 66.7   reports that the commissioner considers advisable for the 
 66.8   preservation of the information contained therein.  Any 
 66.9   summaries, compilations, photographs, duplications, or 
 66.10  reproductions shall be admissible in any proceeding under this 
 66.11  chapter.  Regardless of any restrictions contained in section 
 66.12  16B.50, The commissioner may duplicate records, reports, 
 66.13  summaries, compilations, instructions, determinations, or any 
 66.14  other written or recorded matter pertaining to the 
 66.15  administration of this chapter. 
 66.16     (c) Regardless of any law to the contrary, the commissioner 
 66.17  may provide for the destruction of any records, reports, or 
 66.18  reproductions thereof, or other papers, that are more than two 
 66.19  years old, and that are no longer necessary for determining 
 66.20  employer liability or an applicant's unemployment benefit rights 
 66.21  or for the administration of this chapter, including any 
 66.22  required audit.  The commissioner may provide for the 
 66.23  destruction or disposition of any record, report, or other paper 
 66.24  that has been photographed, duplicated, or reproduced.  
 66.25     Sec. 78.  Minnesota Statutes 2002, section 270.052, is 
 66.26  amended to read: 
 66.27     270.052 [AGREEMENT WITH INTERNAL REVENUE SERVICE.] 
 66.28     Pursuant to section 270B.12, the commissioner may enter 
 66.29  into an agreement with the Internal Revenue Service to identify 
 66.30  taxpayers who have refunds due from the department of revenue 
 66.31  and liabilities owing to the Internal Revenue Service.  In 
 66.32  accordance with the procedures established in the agreement, the 
 66.33  Internal Revenue Service may levy against the refunds to be paid 
 66.34  by the department of revenue.  For each refund levied upon, the 
 66.35  commissioner shall first deduct from the refund a fee of $20, 
 66.36  and then remit the refund or the amount of the levy, whichever 
 67.1   is less, to the Internal Revenue Service.  The proceeds of fees 
 67.2   shall be deposited into the department of revenue recapture 
 67.3   revolving fund under section 270A.07, subdivision 1. 
 67.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 67.5   following final enactment. 
 67.6      Sec. 79.  Minnesota Statutes 2002, section 270.44, is 
 67.7   amended to read: 
 67.8      270.44 [CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.] 
 67.9      The board may establish reasonable fees or charges for 
 67.10  courses, examinations or materials, the proceeds of which shall 
 67.11  be used to finance the activities and operation of the 
 67.12  board. shall charge the following fees: 
 67.13     (1) $105 for a senior accredited Minnesota assessor 
 67.14  license; 
 67.15     (2) $80 for an accredited Minnesota assessor license; 
 67.16     (3) $65 for a certified Minnesota assessor specialist 
 67.17  license; 
 67.18     (4) $55 for a certified Minnesota assessor license; 
 67.19     (5) $50 for a course challenge examination; 
 67.20     (6) $35 for grading a form appraisal; 
 67.21     (7) $60 for grading a narrative appraisal; 
 67.22     (8) $30 for a reinstatement fee; 
 67.23     (9) $25 for a record retention fee; 
 67.24     (10) $20 for an educational transcript; and 
 67.25     (11) $30 for all retests of board-sponsored educational 
 67.26  courses.  
 67.27     <b>[EFFECTIVE DATE.]</b> This section is effective for license 
 67.28  terms beginning on or after July 1, 2004, and for all other fees 
 67.29  imposed on or after July 1, 2004. 
 67.30     Sec. 80.  Minnesota Statutes 2002, section 270A.07, 
 67.31  subdivision 1, is amended to read: 
 67.32     Subdivision 1.  [NOTIFICATION REQUIREMENT.] Any claimant 
 67.33  agency, seeking collection of a debt through setoff against a 
 67.34  refund due, shall submit to the commissioner information 
 67.35  indicating the amount of each debt and information identifying 
 67.36  the debtor, as required by section 270A.04, subdivision 3.  
 68.1      For each setoff of a debt against a refund due, the 
 68.2   commissioner shall charge a fee of $10 $15.  The proceeds of 
 68.3   fees shall be allocated by depositing $2.55 $4 of each $10 $15 
 68.4   fee collected into a department of revenue recapture revolving 
 68.5   fund and depositing the remaining balance into the general 
 68.6   fund.  The sums deposited into the revolving fund are 
 68.7   appropriated to the commissioner for the purpose of 
 68.8   administering the Revenue Recapture Act. 
 68.9      The claimant agency shall notify the commissioner when a 
 68.10  debt has been satisfied or reduced by at least $200 within 30 
 68.11  days after satisfaction or reduction. 
 68.12     <b>[EFFECTIVE DATE.]</b> This section is effective for refund 
 68.13  setoffs after June 30, 2003. 
 68.14     Sec. 81.  Minnesota Statutes 2002, section 289A.08, 
 68.15  subdivision 16, is amended to read: 
 68.16     Subd. 16.  [TAX REFUND OR RETURN PREPARERS; ELECTRONIC 
 68.17  FILING; PAPER FILING FEE IMPOSED.] (a) A "tax refund or return 
 68.18  preparer," as defined in section 289A.60, subdivision 13, 
 68.19  paragraph (g), who prepared more than 500 Minnesota individual 
 68.20  income tax returns for the prior calendar year must file all 
 68.21  Minnesota individual income tax returns prepared for the current 
 68.22  calendar year by electronic means. 
 68.23     (b) For tax returns prepared for the tax year beginning in 
 68.24  2001, the "500" in paragraph (a) is reduced to 250. 
 68.25     (c) For tax returns prepared for tax years beginning after 
 68.26  December 31, 2001, the "500" in paragraph (a) is reduced to 100. 
 68.27     (d) Paragraph (a) does not apply to a return if the 
 68.28  taxpayer has indicated on the return that the taxpayer did not 
 68.29  want the return filed by electronic means. 
 68.30     (e) For each return that is not filed electronically by a 
 68.31  tax refund or return preparer under this subdivision, including 
 68.32  returns filed under paragraph (d), a paper filing fee of $5 is 
 68.33  imposed upon the preparer.  The fee is collected from the 
 68.34  preparer in the same manner as income tax.  
 68.35     <b>[EFFECTIVE DATE.]</b> This section is effective for returns 
 68.36  filed for tax years beginning after December 31, 2002. 
 69.1      Sec. 82.  Minnesota Statutes 2002, section 306.95, is 
 69.2   amended to read: 
 69.3      306.95 [DUTIES OF THE COUNTY AUDITOR.] 
 69.4      Subdivision 1.  [NOTIFICATION OF STATE AUDITOR.] Any county 
 69.5   auditor finding evidence of violations of this chapter when 
 69.6   reviewing reports or bonds filed by any person, firm, 
 69.7   partnership, association, or corporation operating a cemetery, 
 69.8   mausoleum, or columbarium must notify the state auditor's office 
 69.9   county attorney in a timely manner of such finding. 
 69.10     Subd. 2.  [ANNUAL LETTER.] Every county auditor must file 
 69.11  an annual letter by May 31 with the state auditor's office 
 69.12  county attorney disclosing whether the county auditor has 
 69.13  detected any indications of violations of this chapter in the 
 69.14  reports or bonds which were filed or should have been filed.  If 
 69.15  the county auditor has not detected from the information 
 69.16  supplied to the county auditor any such indications, that fact 
 69.17  must be reported to the state auditor county attorney in the 
 69.18  annual letter. 
 69.19     Sec. 83.  [326.992] [BOND REQUIREMENT; GAS, HEATING, 
 69.20  VENTILATION, AIR CONDITIONING, REFRIGERATION (G/HVACR) 
 69.21  CONTRACTORS.] 
 69.22     (a) A person contracting to do gas, heating, ventilation, 
 69.23  cooling, air conditioning, fuel burning, or refrigeration work 
 69.24  must give bond to the state in the amount of $25,000 for all 
 69.25  work entered into within the state.  The bond must be for the 
 69.26  benefit of persons suffering financial loss by reason of the 
 69.27  contractor's failure to comply with the requirements of the 
 69.28  State Mechanical Code.  A bond given to the state must be filed 
 69.29  with the commissioner of administration and is in lieu of all 
 69.30  other bonds to any political subdivision required for work 
 69.31  covered by this section.  The bond must be written by a 
 69.32  corporate surety licensed to do business in the state. 
 69.33     (b) The commissioner of administration may charge each 
 69.34  person giving bond under this section an annual bond filing fee 
 69.35  of $15.  The money must be deposited in a special revenue fund 
 69.36  and is appropriated to the commissioner to cover the cost of 
 70.1   administering the bond program. 
 70.2      Sec. 84.  Minnesota Statutes 2002, section 349.12, is 
 70.3   amended by adding a subdivision to read: 
 70.4      Subd. 11a.  [DISTRIBUTOR SALESPERSON.] "Distributor 
 70.5   salesperson" means a person who in any manner receives orders 
 70.6   for gambling equipment or who solicits a licensed, exempt, or 
 70.7   excluded organization to purchase gambling equipment from a 
 70.8   licensed distributor. 
 70.9      Sec. 85.  Minnesota Statutes 2002, section 349.12, 
 70.10  subdivision 25, is amended to read: 
 70.11     Subd. 25.  [LAWFUL PURPOSE.] (a) "Lawful purpose" means one 
 70.12  or more of the following:  
 70.13     (1) any expenditure by or contribution to a 501(c)(3) or 
 70.14  festival organization, as defined in subdivision 15a, provided 
 70.15  that the organization and expenditure or contribution are in 
 70.16  conformity with standards prescribed by the board under section 
 70.17  349.154, which standards must apply to both types of 
 70.18  organizations in the same manner and to the same extent; 
 70.19     (2) a contribution to an individual or family suffering 
 70.20  from poverty, homelessness, or physical or mental disability, 
 70.21  which is used to relieve the effects of that poverty, 
 70.22  homelessness, or disability; 
 70.23     (3) a contribution to an individual for treatment for 
 70.24  delayed posttraumatic stress syndrome or a contribution to a 
 70.25  program recognized by the Minnesota department of human services 
 70.26  for the education, prevention, or treatment of compulsive 
 70.27  gambling; 
 70.28     (4) a contribution to or expenditure on a public or private 
 70.29  nonprofit educational institution registered with or accredited 
 70.30  by this state or any other state; 
 70.31     (5) a contribution to a scholarship fund for defraying the 
 70.32  cost of education to individuals where the funds are awarded 
 70.33  through an open and fair selection process; 
 70.34     (6) activities by an organization or a government entity 
 70.35  which recognize humanitarian or military service to the United 
 70.36  States, the state of Minnesota, or a community, subject to rules 
 71.1   of the board, provided that the rules must not include mileage 
 71.2   reimbursements in the computation of the per occasion 
 71.3   reimbursement limit and must impose no aggregate annual limit on 
 71.4   the amount of reasonable and necessary expenditures made to 
 71.5   support: 
 71.6      (i) members of a military marching or color guard unit for 
 71.7   activities conducted within the state; 
 71.8      (ii) members of an organization solely for services 
 71.9   performed by the members at funeral services; or 
 71.10     (iii) members of military marching, color guard, or honor 
 71.11  guard units may be reimbursed for participating in color guard, 
 71.12  honor guard, or marching unit events within the state or states 
 71.13  contiguous to Minnesota at a per participant rate of up to $35 
 71.14  per occasion; 
 71.15     (7) recreational, community, and athletic facilities and 
 71.16  activities intended primarily for persons under age 21, provided 
 71.17  that such facilities and activities do not discriminate on the 
 71.18  basis of gender and the organization complies with section 
 71.19  349.154; 
 71.20     (8) payment of local taxes authorized under this chapter, 
 71.21  taxes imposed by the United States on receipts from lawful 
 71.22  gambling, the taxes imposed by section 297E.02, subdivisions 1, 
 71.23  4, 5, and 6, and the tax imposed on unrelated business income by 
 71.24  section 290.05, subdivision 3; 
 71.25     (9) payment of real estate taxes and assessments on 
 71.26  permitted gambling premises wholly owned by the licensed 
 71.27  organization paying the taxes, or wholly leased by a licensed 
 71.28  veterans organization under a national charter recognized under 
 71.29  section 501(c)(19) of the Internal Revenue Code, not to exceed: 
 71.30     (i) for premises used for bingo, the amount that an 
 71.31  organization may expend under board rules on rent for bingo; and 
 71.32     (ii) $35,000 per year for premises used for other forms of 
 71.33  lawful gambling; 
 71.34     (10) a contribution to the United States, this state or any 
 71.35  of its political subdivisions, or any agency or instrumentality 
 71.36  thereof other than a direct contribution to a law enforcement or 
 72.1   prosecutorial agency; 
 72.2      (11) a contribution to or expenditure by a nonprofit 
 72.3   organization which is a church or body of communicants gathered 
 72.4   in common membership for mutual support and edification in 
 72.5   piety, worship, or religious observances; 
 72.6      (12) payment of the reasonable costs of an audit required 
 72.7   in section 297E.06, subdivision 4, provided the annual audit is 
 72.8   filed in a timely manner with the department of revenue; 
 72.9      (13) a contribution to or expenditure on a wildlife 
 72.10  management project that benefits the public at-large, provided 
 72.11  that the state agency with authority over that wildlife 
 72.12  management project approves the project before the contribution 
 72.13  or expenditure is made; 
 72.14     (14) expenditures, approved by the commissioner of natural 
 72.15  resources, by an organization for grooming and maintaining 
 72.16  snowmobile trails and all-terrain vehicle trails that are (1) 
 72.17  grant-in-aid trails established under section 85.019, or (2) 
 72.18  other trails open to public use, including purchase or lease of 
 72.19  equipment for this purpose; or 
 72.20     (15) conducting nutritional programs, food shelves, and 
 72.21  congregate dining programs primarily for persons who are age 62 
 72.22  or older or disabled; 
 72.23     (16) a contribution to a community arts organization, or an 
 72.24  expenditure to sponsor arts programs in the community, including 
 72.25  but not limited to visual, literary, performing, or musical 
 72.26  arts; 
 72.27     (17) payment of heat, water, sanitation, telephone, and 
 72.28  other utility bills for a building owned or leased by, and used 
 72.29  as the primary headquarters of, a veterans organization; or 
 72.30     (18) expenditure by a veterans organization of up to $5,000 
 72.31  in a calendar year in net costs to the organization for meals 
 72.32  and other membership events, limited to members and spouses, 
 72.33  held in recognition of military service; or 
 72.34     (19) payment of fees authorized under this chapter imposed 
 72.35  by the state of Minnesota to conduct lawful gambling in 
 72.36  Minnesota. 
 73.1      (b) Notwithstanding paragraph (a), "lawful purpose" does 
 73.2   not include: 
 73.3      (1) any expenditure made or incurred for the purpose of 
 73.4   influencing the nomination or election of a candidate for public 
 73.5   office or for the purpose of promoting or defeating a ballot 
 73.6   question; 
 73.7      (2) any activity intended to influence an election or a 
 73.8   governmental decision-making process; 
 73.9      (3) the erection, acquisition, improvement, expansion, 
 73.10  repair, or maintenance of real property or capital assets owned 
 73.11  or leased by an organization, unless the board has first 
 73.12  specifically authorized the expenditures after finding that (i) 
 73.13  the real property or capital assets will be used exclusively for 
 73.14  one or more of the purposes in paragraph (a); (ii) with respect 
 73.15  to expenditures for repair or maintenance only, that the 
 73.16  property is or will be used extensively as a meeting place or 
 73.17  event location by other nonprofit organizations or community or 
 73.18  service groups and that no rental fee is charged for the use; 
 73.19  (iii) with respect to expenditures, including a mortgage payment 
 73.20  or other debt service payment, for erection or acquisition only, 
 73.21  that the erection or acquisition is necessary to replace with a 
 73.22  comparable building, a building owned by the organization and 
 73.23  destroyed or made uninhabitable by fire or natural disaster, 
 73.24  provided that the expenditure may be only for that part of the 
 73.25  replacement cost not reimbursed by insurance; (iv) with respect 
 73.26  to expenditures, including a mortgage payment or other debt 
 73.27  service payment, for erection or acquisition only, that the 
 73.28  erection or acquisition is necessary to replace with a 
 73.29  comparable building a building owned by the organization that 
 73.30  was acquired from the organization by eminent domain or sold by 
 73.31  the organization to a purchaser that the organization reasonably 
 73.32  believed would otherwise have acquired the building by eminent 
 73.33  domain, provided that the expenditure may be only for that part 
 73.34  of the replacement cost that exceeds the compensation received 
 73.35  by the organization for the building being replaced; or (v) with 
 73.36  respect to an expenditure to bring an existing building into 
 74.1   compliance with the Americans with Disabilities Act under item 
 74.2   (ii), an organization has the option to apply the amount of the 
 74.3   board-approved expenditure to the erection or acquisition of a 
 74.4   replacement building that is in compliance with the Americans 
 74.5   with Disabilities Act; 
 74.6      (4) an expenditure by an organization which is a 
 74.7   contribution to a parent organization, foundation, or affiliate 
 74.8   of the contributing organization, if the parent organization, 
 74.9   foundation, or affiliate has provided to the contributing 
 74.10  organization within one year of the contribution any money, 
 74.11  grants, property, or other thing of value; 
 74.12     (5) a contribution by a licensed organization to another 
 74.13  licensed organization unless the board has specifically 
 74.14  authorized the contribution.  The board must authorize such a 
 74.15  contribution when requested to do so by the contributing 
 74.16  organization unless it makes an affirmative finding that the 
 74.17  contribution will not be used by the recipient organization for 
 74.18  one or more of the purposes in paragraph (a); or 
 74.19     (6) a contribution to a statutory or home rule charter 
 74.20  city, county, or town by a licensed organization with the 
 74.21  knowledge that the governmental unit intends to use the 
 74.22  contribution for a pension or retirement fund. 
 74.23     Sec. 86.  Minnesota Statutes 2002, section 349.151, 
 74.24  subdivision 4, is amended to read: 
 74.25     Subd. 4.  [POWERS AND DUTIES.] (a) The board has the 
 74.26  following powers and duties:  
 74.27     (1) to regulate lawful gambling to ensure it is conducted 
 74.28  in the public interest; 
 74.29     (2) to issue licenses to organizations, 
 74.30  distributors, distributor salespersons, bingo halls, 
 74.31  manufacturers, and gambling managers; 
 74.32     (3) to collect and deposit license, permit, and 
 74.33  registration fees due under this chapter; 
 74.34     (4) to receive reports required by this chapter and inspect 
 74.35  all premises, records, books, and other documents of 
 74.36  organizations, distributors, manufacturers, and bingo halls to 
 75.1   insure compliance with all applicable laws and rules; 
 75.2      (5) to make rules authorized by this chapter; 
 75.3      (6) to register gambling equipment and issue registration 
 75.4   stamps; 
 75.5      (7) to provide by rule for the mandatory posting by 
 75.6   organizations conducting lawful gambling of rules of play and 
 75.7   the odds and/or house percentage on each form of lawful 
 75.8   gambling; 
 75.9      (8) to report annually to the governor and legislature on 
 75.10  its activities and on recommended changes in the laws governing 
 75.11  gambling; 
 75.12     (9) to impose civil penalties of not more than $500 per 
 75.13  violation on organizations, distributors, employees eligible to 
 75.14  make sales on behalf of a distributor salespersons, 
 75.15  manufacturers, bingo halls, and gambling managers for failure to 
 75.16  comply with any provision of this chapter or any rule or order 
 75.17  of the board; 
 75.18     (10) to issue premises permits to organizations licensed to 
 75.19  conduct lawful gambling; 
 75.20     (11) to delegate to the director the authority to issue or 
 75.21  deny license and premises permit applications and renewals under 
 75.22  criteria established by the board; 
 75.23     (12) to suspend or revoke licenses and premises permits of 
 75.24  organizations, distributors, distributor salespersons, 
 75.25  manufacturers, bingo halls, or gambling managers as provided in 
 75.26  this chapter; 
 75.27     (13) to register employees of organizations licensed to 
 75.28  conduct lawful gambling; 
 75.29     (14) to require fingerprints from persons determined by 
 75.30  board rule to be subject to fingerprinting; 
 75.31     (15) to delegate to a compliance review group of the board 
 75.32  the authority to investigate alleged violations, issue consent 
 75.33  orders, and initiate contested cases on behalf of the board; 
 75.34     (16) to order organizations, distributors, distributor 
 75.35  salespersons, manufacturers, bingo halls, and gambling managers 
 75.36  to take corrective actions; and 
 76.1      (17) to take all necessary steps to ensure the integrity of 
 76.2   and public confidence in lawful gambling.  
 76.3      (b) The board, or director if authorized to act on behalf 
 76.4   of the board, may by citation assess any organization, 
 76.5   distributor, employee eligible to make sales on behalf of a 
 76.6   distributor, manufacturer, bingo hall licensee, or gambling 
 76.7   manager a civil penalty of not more than $500 per violation for 
 76.8   a failure to comply with any provision of this chapter or any 
 76.9   rule adopted or order issued by the board.  Any organization, 
 76.10  distributor, bingo hall licensee, gambling manager, or 
 76.11  manufacturer assessed a civil penalty under this paragraph may 
 76.12  request a hearing before the board.  Appeals of citations 
 76.13  imposing a civil penalty are not subject to the provisions of 
 76.14  the Administrative Procedure Act.  
 76.15     (c) All fees and penalties received by the board must be 
 76.16  deposited in the general fund. 
 76.17     (d) All fees imposed by the board under sections 349.16 to 
 76.18  349.165 must be deposited in the state treasury and credited to 
 76.19  a lawful gambling regulation account in the special revenue fund.
 76.20  Receipts in this account are available for the operations of the 
 76.21  board up to the amount authorized in biennial appropriations 
 76.22  from the legislature. 
 76.23     Sec. 87.  Minnesota Statutes 2002, section 349.151, 
 76.24  subdivision 4b, is amended to read: 
 76.25     Subd. 4b.  [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 
 76.26  The board may by rule authorize but not require the use of 
 76.27  pull-tab dispensing devices. 
 76.28     (b) Rules adopted under paragraph (a): 
 76.29     (1) must limit the number of pull-tab dispensing devices on 
 76.30  any permitted premises to three; and 
 76.31     (2) must limit the use of pull-tab dispensing devices to a 
 76.32  permitted premises which is (i) a licensed premises for on-sales 
 76.33  of intoxicating liquor or 3.2 percent malt beverages; or (ii) a 
 76.34  licensed bingo hall that allows gambling only by persons 18 
 76.35  years or older. 
 76.36     (c) Notwithstanding rules adopted under paragraph (b), 
 77.1   pull-tab dispensing devices may be used in establishments 
 77.2   licensed for the off-sale of intoxicating liquor, other than 
 77.3   drugstores and general food stores licensed under section 
 77.4   340A.405, subdivision 1. 
 77.5      (d) The director may charge a manufacturer a fee of up to 
 77.6   $5,000 per pull-tab dispensing device to cover the costs of 
 77.7   services provided by an independent testing laboratory to 
 77.8   perform testing and analysis of pull-tab dispensing devices.  
 77.9   The director shall deposit in a separate account in the state 
 77.10  treasury all money the director receives as reimbursement for 
 77.11  the costs of services provided by independent testing 
 77.12  laboratories that have entered into contracts with the state to 
 77.13  perform testing and analysis of pull-tab dispensing devices.  
 77.14  Money in the account is appropriated to the director to pay the 
 77.15  costs of services under those contracts. 
 77.16     Sec. 88.  Minnesota Statutes 2002, section 349.155, 
 77.17  subdivision 3, is amended to read: 
 77.18     Subd. 3.  [MANDATORY DISQUALIFICATIONS.] (a) In the case of 
 77.19  licenses for manufacturers, distributors, distributor 
 77.20  salespersons, bingo halls, and gambling managers, the board may 
 77.21  not issue or renew a license under this chapter, and shall 
 77.22  revoke a license under this chapter, if the applicant or 
 77.23  licensee, or a director, officer, partner, governor, or person 
 77.24  in a supervisory or management position of the applicant or 
 77.25  licensee, or an employee eligible to make sales on behalf of the 
 77.26  applicant or licensee: 
 77.27     (1) has ever been convicted of a felony or a crime 
 77.28  involving gambling; 
 77.29     (2) has ever been convicted of (i) assault, (ii) a criminal 
 77.30  violation involving the use of a firearm, or (iii) making 
 77.31  terroristic threats; 
 77.32     (3) is or has ever been connected with or engaged in an 
 77.33  illegal business; 
 77.34     (4) owes $500 or more in delinquent taxes as defined in 
 77.35  section 270.72; 
 77.36     (5) had a sales and use tax permit revoked by the 
 78.1   commissioner of revenue within the past two years; or 
 78.2      (6) after demand, has not filed tax returns required by the 
 78.3   commissioner of revenue.  The board may deny or refuse to renew 
 78.4   a license under this chapter, and may revoke a license under 
 78.5   this chapter, if any of the conditions in this paragraph are 
 78.6   applicable to an affiliate or direct or indirect holder of more 
 78.7   than a five percent financial interest in the applicant or 
 78.8   licensee.  
 78.9      (b) In the case of licenses for organizations, the board 
 78.10  may not issue or renew a license under this chapter, and shall 
 78.11  revoke a license under this chapter, if the organization, or an 
 78.12  officer or member of the governing body of the organization:  
 78.13     (1) has been convicted of a felony or gross misdemeanor 
 78.14  within the five years before the issuance or renewal of the 
 78.15  license; 
 78.16     (2) has ever been convicted of a crime involving gambling; 
 78.17  or 
 78.18     (3) has had a license issued by the board or director 
 78.19  permanently revoked for violation of law or board rule. 
 78.20     Sec. 89.  Minnesota Statutes 2002, section 349.16, 
 78.21  subdivision 6, is amended to read: 
 78.22     Subd. 6.  [LICENSE CLASSIFICATIONS FEES.] The board may 
 78.23  issue four classes of organization licenses:  a class A license 
 78.24  authorizing all forms of lawful gambling; a class B license 
 78.25  authorizing all forms of lawful gambling except bingo; a class C 
 78.26  license authorizing bingo only, or bingo and pull-tabs if the 
 78.27  gross receipts for any combination of bingo and pull-tabs does 
 78.28  not exceed $50,000 per year; and a class D license authorizing 
 78.29  raffles only.  The board shall not charge a fee for an 
 78.30  organization license.  The board shall impose an annual fee of 
 78.31  $350 for an organization's license application.  Organizations 
 78.32  that expect to receive less than $100,000 in gross annual 
 78.33  receipts may request from the board a waiver of organization 
 78.34  license fees. 
 78.35     Sec. 90.  Minnesota Statutes 2002, section 349.161, 
 78.36  subdivision 1, is amended to read: 
 79.1      Subdivision 1.  [PROHIBITED ACTS; LICENSES REQUIRED.] (a) 
 79.2   No person may:  
 79.3      (1) sell, offer for sale, or furnish gambling equipment for 
 79.4   use within the state other than for lawful gambling exempt or 
 79.5   excluded from licensing, except to an organization licensed for 
 79.6   lawful gambling; 
 79.7      (2) sell, offer for sale, or furnish gambling equipment for 
 79.8   use within the state without having obtained a distributor 
 79.9   license or a distributor salesperson license under this section; 
 79.10     (3) sell, offer for sale, or furnish gambling equipment for 
 79.11  use within the state that is not purchased or obtained from a 
 79.12  manufacturer or distributor licensed under this chapter; or 
 79.13     (4) sell, offer for sale, or furnish gambling equipment for 
 79.14  use within the state that has the same serial number as another 
 79.15  item of gambling equipment of the same type sold or offered for 
 79.16  sale or furnished for use in the state by that distributor. 
 79.17     (b) No licensed distributor salesperson may sell, offer for 
 79.18  sale, or furnish gambling equipment for use within the state 
 79.19  without being employed by a licensed distributor or owning a 
 79.20  distributor license.  
 79.21     Sec. 91.  Minnesota Statutes 2002, section 349.161, 
 79.22  subdivision 4, is amended to read: 
 79.23     Subd. 4.  [FEES.] (a) The initial annual fee for a 
 79.24  distributor's license is $3,500 $6,000.  The initial term of a 
 79.25  distributor's license is one year.  Renewal licenses under this 
 79.26  section are valid for two years and the fee for the renewal 
 79.27  license is $7,000. 
 79.28     (b) The annual fee for a distributor salesperson license is 
 79.29  $100. 
 79.30     Sec. 92.  Minnesota Statutes 2002, section 349.161, 
 79.31  subdivision 5, is amended to read: 
 79.32     Subd. 5.  [PROHIBITION.] (a) No distributor, distributor 
 79.33  salesperson, or other employee of a distributor, may also be a 
 79.34  wholesale distributor of alcoholic beverages or an employee of a 
 79.35  wholesale distributor of alcoholic beverages. 
 79.36     (b) No distributor, distributor salesperson, or any 
 80.1   representative, agent, affiliate, or other employee of a 
 80.2   distributor, may:  (1) be involved in the conduct of lawful 
 80.3   gambling by an organization; (2) keep or assist in the keeping 
 80.4   of an organization's financial records, accounts, and 
 80.5   inventories; or (3) prepare or assist in the preparation of tax 
 80.6   forms and other reporting forms required to be submitted to the 
 80.7   state by an organization. 
 80.8      (c) No distributor, distributor salesperson, or any 
 80.9   representative, agent, affiliate, or other employee of a 
 80.10  distributor may provide a lessor of gambling premises any 
 80.11  compensation, gift, gratuity, premium, or other thing of value. 
 80.12     (d) No distributor, distributor salesperson, or any 
 80.13  representative, agent, affiliate, or other employee of a 
 80.14  distributor may participate in any gambling activity at any 
 80.15  gambling site or premises where gambling equipment purchased 
 80.16  from that distributor or distributor salesperson is being used 
 80.17  in the conduct of lawful gambling. 
 80.18     (e) No distributor, distributor salesperson, or any 
 80.19  representative, agent, affiliate, or other employee of a 
 80.20  distributor may alter or modify any gambling equipment, except 
 80.21  to add a "last ticket sold" prize sticker. 
 80.22     (f) No distributor, distributor salesperson, or any 
 80.23  representative, agent, affiliate, or other employee of a 
 80.24  distributor may:  (1) recruit a person to become a gambling 
 80.25  manager of an organization or identify to an organization a 
 80.26  person as a candidate to become gambling manager for the 
 80.27  organization; or (2) identify for an organization a potential 
 80.28  gambling location. 
 80.29     (g) No distributor or distributor salesperson may purchase 
 80.30  gambling equipment for resale to a person for use within the 
 80.31  state from any person not licensed as a manufacturer under 
 80.32  section 349.163. 
 80.33     (h) No distributor or distributor salesperson may sell 
 80.34  gambling equipment to any person for use in Minnesota other than 
 80.35  (i) a licensed organization or organization excluded or exempt 
 80.36  from licensing, or (ii) the governing body of an Indian tribe. 
 81.1      (i) No distributor or distributor salesperson may sell or 
 81.2   otherwise provide a pull-tab or tipboard deal with the symbol 
 81.3   required by section 349.163, subdivision 5, paragraph (h), 
 81.4   visible on the flare to any person other than in Minnesota to a 
 81.5   licensed organization or organization exempt from licensing. 
 81.6      Sec. 93.  Minnesota Statutes 2002, section 349.162, 
 81.7   subdivision 1, is amended to read: 
 81.8      Subdivision 1.  [STAMP REQUIRED.] (a) A distributor may not 
 81.9   sell, transfer, furnish, or otherwise provide to a person, and 
 81.10  no person may purchase, borrow, accept, or acquire from a 
 81.11  distributor gambling equipment for use within the state unless 
 81.12  the equipment has been registered with the board and has a 
 81.13  registration stamp affixed, except for gambling equipment not 
 81.14  stamped by the manufacturer pursuant to section 349.163, 
 81.15  subdivision 5 or 8.  The board shall charge a fee of five cents 
 81.16  for each stamp.  Each stamp must bear a registration number 
 81.17  assigned by the board.  A distributor or manufacturer is 
 81.18  entitled to a refund for unused registration stamps and 
 81.19  replacement for registration stamps which are defective or 
 81.20  canceled by the distributor or manufacturer. 
 81.21     (b) A manufacturer must return all unused registration 
 81.22  stamps in its possession to the board by February 1, 1995.  No 
 81.23  manufacturer may possess unaffixed registration stamps after 
 81.24  February 1, 1995. 
 81.25     (c) After February 1, 1996, no person may possess any 
 81.26  unplayed pull-tab or tipboard deals with a registration stamp 
 81.27  affixed to the flare or any unplayed paddleticket cards with a 
 81.28  registration stamp affixed to the master flare.  This paragraph 
 81.29  does not apply to unplayed pull-tab or tipboard deals with a 
 81.30  registration stamp affixed to the flare, or to unplayed 
 81.31  paddleticket cards with a registration stamp affixed to the 
 81.32  master flare, if the deals or cards are identified on a list of 
 81.33  existing inventory submitted by a licensed organization or a 
 81.34  licensed distributor, in a format prescribed by the commissioner 
 81.35  of revenue, to the commissioner of revenue on or before February 
 81.36  1, 1996.  Gambling equipment kept in violation of this paragraph 
 82.1   is contraband under section 349.2125. 
 82.2      Sec. 94.  Minnesota Statutes 2002, section 349.163, 
 82.3   subdivision 2, is amended to read: 
 82.4      Subd. 2.  [LICENSE; FEE.] The initial license under this 
 82.5   section is valid for one year.  The fee for the initial license 
 82.6   is $5,000.  Renewal licenses under this section are valid for 
 82.7   two years and the fee for the renewal license is $10,000.  The 
 82.8   annual fee for a manufacturer's license is $9,000. 
 82.9      Sec. 95.  Minnesota Statutes 2002, section 349.163, 
 82.10  subdivision 6, is amended to read: 
 82.11     Subd. 6.  [SAMPLES OF GAMBLING EQUIPMENT.] The board shall 
 82.12  require each licensed manufacturer to submit to the board one or 
 82.13  more samples of each item of gambling equipment the manufacturer 
 82.14  manufactures for use or resale in this state.  The board shall 
 82.15  inspect and test all the equipment it deems necessary to 
 82.16  determine the equipment's compliance with law and board rules.  
 82.17  Samples required under this subdivision must be approved by the 
 82.18  board before the equipment being sampled is shipped into or sold 
 82.19  for use or resale in this state.  The board shall impose a fee 
 82.20  of $25 for each item of gambling equipment that the manufacturer 
 82.21  submits for approval or for which the manufacturer requests 
 82.22  approval.  The board shall impose a fee of $100 for each sample 
 82.23  of gambling equipment that it tests.  The board may require 
 82.24  samples of gambling equipment to be tested by an independent 
 82.25  testing laboratory prior to submission to the board for 
 82.26  approval.  All costs of testing by an independent testing 
 82.27  laboratory must be borne by the manufacturer.  An independent 
 82.28  testing laboratory used by a manufacturer to test samples of 
 82.29  gambling equipment must be approved by the board before the 
 82.30  equipment is submitted to the laboratory for testing.  The board 
 82.31  may request the assistance of the commissioner of public safety 
 82.32  and the director of the state lottery in performing the tests. 
 82.33     Sec. 96.  Minnesota Statutes 2002, section 349.164, 
 82.34  subdivision 4, is amended to read: 
 82.35     Subd. 4.  [FEES; TERM OF LICENSE.] The initial annual fee 
 82.36  for a bingo hall license is $2,500 $4,000.  An initial license 
 83.1   under this section is valid for one year.  Renewal licenses 
 83.2   under this section are valid for two years and the fee for the 
 83.3   renewal license is $5,000. 
 83.4      Sec. 97.  Minnesota Statutes 2002, section 349.165, 
 83.5   subdivision 3, is amended to read: 
 83.6      Subd. 3.  [FEES.] (a) The board may issue four classes of 
 83.7   premises permits corresponding to the classes of licenses 
 83.8   authorized to organizations licensed under section 349.16, 
 83.9   subdivision 6.  The annual fee for each class of premises permit 
 83.10  is: $150. 
 83.11     (1) $400 for a class A permit; 
 83.12     (2) $250 for a class B permit; 
 83.13     (3) $200 for a class C permit; and 
 83.14     (4) $150 for a class D permit. 
 83.15     (b) If a premises permit is issued during the second year 
 83.16  of an organization's license, the fee for each class of permit 
 83.17  is: 
 83.18     (1) $200 for a class A permit; 
 83.19     (2) $125 for a class B permit; 
 83.20     (3) $100 for a class C permit; and 
 83.21     (4) $75 for a class D permit. 
 83.22     (b) In addition to the annual fee for a premises permit, an 
 83.23  organization must pay a monthly regulatory fee of 0.1 percent of 
 83.24  the organization's gross receipts from lawful gambling conducted 
 83.25  at that site.  The fee must be reported and paid on a monthly 
 83.26  basis in a format as determined by the commissioner of revenue, 
 83.27  and remitted to the commissioner of revenue along with the 
 83.28  organization's monthly tax return for that premises.  All 
 83.29  premises permit fees received by the commissioner of revenue 
 83.30  under this subdivision must be deposited in the lawful gambling 
 83.31  regulation account in the special revenue fund according to 
 83.32  section 349.151.  Failure to pay the monthly premises permit 
 83.33  fees in a timely manner may result in disciplinary action by the 
 83.34  board. 
 83.35     Sec. 98.  Minnesota Statutes 2002, section 349.166, 
 83.36  subdivision 1, is amended to read: 
 84.1      Subdivision 1.  [EXCLUSIONS.] (a) Bingo may be conducted 
 84.2   without a license and without complying with sections 349.168, 
 84.3   subdivisions 1 and 2; 349.17, subdivisions 1, 4, and 5; 349.18, 
 84.4   subdivision 1; and 349.19, if it is conducted:  
 84.5      (1) by an organization in connection with a county fair, 
 84.6   the state fair, or a civic celebration and is not conducted for 
 84.7   more than 12 consecutive days and is limited to no more than 
 84.8   four separate applications for activities applied for and 
 84.9   approved in a calendar year; or 
 84.10     (2) by an organization that conducts four or fewer bingo 
 84.11  occasions in a calendar year.  
 84.12     An organization that holds a license to conduct lawful 
 84.13  gambling under this chapter may not conduct bingo under this 
 84.14  subdivision.  
 84.15     (b) Bingo may be conducted within a nursing home or a 
 84.16  senior citizen housing project or by a senior citizen 
 84.17  organization if the prizes for a single bingo game do not exceed 
 84.18  $10, total prizes awarded at a single bingo occasion do not 
 84.19  exceed $200, no more than two bingo occasions are held by the 
 84.20  organization or at the facility each week, only members of the 
 84.21  organization or residents of the nursing home or housing project 
 84.22  are allowed to play in a bingo game, no compensation is paid for 
 84.23  any persons who conduct the bingo, and a manager is appointed to 
 84.24  supervise the bingo.  Bingo conducted under this paragraph is 
 84.25  exempt from sections 349.11 to 349.23, and the board may not 
 84.26  require an organization that conducts bingo under this 
 84.27  paragraph, or the manager who supervises the bingo, to register 
 84.28  or file a report with the board.  The gross receipts from bingo 
 84.29  conducted under the limitations of this subdivision are exempt 
 84.30  from taxation under chapter 297A.  
 84.31     (c) Raffles may be conducted by an organization without a 
 84.32  license and without complying with sections 349.154 to 349.165 
 84.33  and 349.167 to 349.213 if the value of all raffle prizes awarded 
 84.34  by the organization in a calendar year does not 
 84.35  exceed $750 $1,500.  
 84.36     (d) Except as provided in paragraph (b), the organization 
 85.1   must maintain all required records of excluded gambling activity 
 85.2   for 3-1/2 years. 
 85.3      Sec. 99.  Minnesota Statutes 2002, section 349.166, 
 85.4   subdivision 2, is amended to read: 
 85.5      Subd. 2.  [EXEMPTIONS.] (a) Lawful gambling may be 
 85.6   conducted by an organization without a license and without 
 85.7   complying with sections 349.168, subdivisions 1 and 2; 349.17, 
 85.8   subdivisions 4 and 5; 349.18, subdivision 1; and 349.19 if: 
 85.9      (1) the organization conducts lawful gambling on five or 
 85.10  fewer days in a calendar year; 
 85.11     (2) the organization does not award more than $50,000 in 
 85.12  prizes for lawful gambling in a calendar year; 
 85.13     (3) the organization pays a fee of $25 $50 to the board, 
 85.14  notifies the board in writing not less than 30 days before each 
 85.15  lawful gambling occasion of the date and location of the 
 85.16  occasion, or 60 days for an occasion held in the case of a city 
 85.17  of the first class, the types of lawful gambling to be 
 85.18  conducted, the prizes to be awarded, and receives an exemption 
 85.19  identification number; 
 85.20     (4) the organization notifies the local government unit 30 
 85.21  days before the lawful gambling occasion, or 60 days for an 
 85.22  occasion held in a city of the first class; 
 85.23     (5) the organization purchases all gambling equipment and 
 85.24  supplies from a licensed distributor; and 
 85.25     (6) the organization reports to the board, on a single-page 
 85.26  form prescribed by the board, within 30 days of each gambling 
 85.27  occasion, the gross receipts, prizes, expenses, expenditures of 
 85.28  net profits from the occasion, and the identification of the 
 85.29  licensed distributor from whom all gambling equipment was 
 85.30  purchased.  
 85.31     (b) If the organization fails to file a timely report as 
 85.32  required by paragraph (a), clause (3) or (6), the board shall 
 85.33  not issue any authorization, license, or permit to the 
 85.34  organization to conduct lawful gambling on an exempt, excluded, 
 85.35  or licensed basis until the report has been filed. 
 85.36     (c) Merchandise prizes must be valued at their fair market 
 86.1   value. 
 86.2      (d) Unused pull-tab and tipboard deals must be returned to 
 86.3   the distributor within seven working days after the end of the 
 86.4   lawful gambling occasion.  The distributor must accept and pay a 
 86.5   refund for all returns of unopened and undamaged deals returned 
 86.6   under this paragraph. 
 86.7      (e) An organization that is exempt from taxation on 
 86.8   purchases of pull-tabs and tipboards under section 297E.02, 
 86.9   subdivision 4, paragraph (b), clause (4), must return to the 
 86.10  distributor any tipboard or pull-tab deal no part of which is 
 86.11  used at the lawful gambling occasion for which it was purchased 
 86.12  by the organization. 
 86.13     (f) The organization must maintain all required records of 
 86.14  exempt gambling activity for 3-1/2 years. 
 86.15     Sec. 100.  [349.2113] [PRIZE PAYOUT LIMIT.] 
 86.16     On or after January 1, 2004, a licensed organization may 
 86.17  not put into play a pull-tab or tipboard deal that provides for 
 86.18  a prize payout of greater than 85 percent of the ideal gross of 
 86.19  the deal. 
 86.20     Sec. 101.  Minnesota Statutes 2002, section 349A.08, 
 86.21  subdivision 5, is amended to read: 
 86.22     Subd. 5.  [PAYMENT; UNCLAIMED PRIZES.] A prize in the state 
 86.23  lottery must be claimed by the winner within one year of the 
 86.24  date of the drawing at which the prize was awarded or the last 
 86.25  day sales were authorized for a game where a prize was 
 86.26  determined in a manner other than by means of a drawing.  If a 
 86.27  valid claim is not made for a prize payable directly by the 
 86.28  lottery by the end of this period, the prize money is considered 
 86.29  unclaimed and the winner of the prize shall have no further 
 86.30  claim to the prize.  A prize won by a person who purchased the 
 86.31  winning ticket in violation of section 349A.12, subdivision 1, 
 86.32  or won by a person ineligible to be awarded a prize under 
 86.33  subdivision 7 must be treated as an unclaimed prize under this 
 86.34  section.  The director shall must transfer 70 percent of all 
 86.35  unclaimed prize money at the end of each fiscal year from the 
 86.36  lottery cash flow account as follows:  of the 70 percent, 40 
 87.1   percent must be transferred to the Minnesota environment and 
 87.2   natural resources trust fund and 60 percent must be transferred 
 87.3   to the general fund.  The remaining 30 percent of the unclaimed 
 87.4   prize money must be added by the director to prize pools of 
 87.5   subsequent lottery games. 
 87.6      Sec. 102.  Minnesota Statutes 2002, section 403.02, 
 87.7   subdivision 10, is amended to read: 
 87.8      Subd. 10.  [COMMISSIONER.] "Commissioner" means the 
 87.9   commissioner of administration public safety. 
 87.10     Sec. 103.  Minnesota Statutes 2002, section 403.06, is 
 87.11  amended to read: 
 87.12     403.06 [DEPARTMENT DUTIES.] 
 87.13     Subdivision 1.  [DUTIES.] (a) The department of 
 87.14  administration commissioner shall coordinate the maintenance of 
 87.15  911 systems.  The department commissioner shall aid counties in 
 87.16  the formulation of concepts, methods, and procedures which will 
 87.17  improve the operation and maintenance of 911 systems.  The 
 87.18  department commissioner shall establish procedures for 
 87.19  determining and evaluating requests for variations from the 
 87.20  established design standards.  The department commissioner shall 
 87.21  respond to requests by wireless or wire line telecommunications 
 87.22  service providers or by counties or other governmental agencies 
 87.23  for system agreements, contracts, and tariff language promptly 
 87.24  and no later than within 45 days of the request unless otherwise 
 87.25  mutually agreed to by the parties.  
 87.26     (b) The department commissioner shall prepare a biennial 
 87.27  budget for maintaining the 911 system.  By December 15 of each 
 87.28  year, the department commissioner shall prepare an annual 
 87.29  submit a report to the legislature detailing the expenditures 
 87.30  for maintaining the 911 system, the 911 fees collected, the 
 87.31  balance of the 911 fund, and the 911-related administrative 
 87.32  expenses of the department commissioner.  The department 
 87.33  commissioner is authorized to expend funds money that have has 
 87.34  been appropriated to pay for the maintenance, enhancements, and 
 87.35  expansion of the 911 system. 
 87.36     Subd. 2.  [WAIVER.] Any county, other governmental agency, 
 88.1   wireless telecommunications service provider, or wire line 
 88.2   telecommunications service provider may petition the department 
 88.3   of administration commissioner for a waiver of all or portions 
 88.4   of the requirements.  A waiver may be granted upon a 
 88.5   demonstration by the petitioner that the requirement is 
 88.6   economically infeasible. 
 88.7      Sec. 104.  Minnesota Statutes 2002, section 403.07, 
 88.8   subdivision 1, is amended to read: 
 88.9      Subdivision 1.  [RULES.] The department of 
 88.10  administration commissioner shall establish and adopt in 
 88.11  accordance with chapter 14, rules for the administration of this 
 88.12  chapter and for the development of 911 systems in the state 
 88.13  including: 
 88.14     (1) design standards for 911 systems incorporating the 
 88.15  standards adopted pursuant to subdivision 2 for the seven-county 
 88.16  metropolitan area; and 
 88.17     (2) a procedure for determining and evaluating requests for 
 88.18  variations from the established design standards. 
 88.19     Sec. 105.  Minnesota Statutes 2002, section 403.07, 
 88.20  subdivision 2, is amended to read: 
 88.21     Subd. 2.  [DESIGN STANDARDS.] The metropolitan 911 board 
 88.22  shall establish and adopt design standards for the metropolitan 
 88.23  area 911 system and transmit them to the department of 
 88.24  administration commissioner for incorporation into the rules 
 88.25  adopted pursuant to this section. 
 88.26     Sec. 106.  Minnesota Statutes 2002, section 403.07, 
 88.27  subdivision 3, is amended to read: 
 88.28     Subd. 3.  [DATABASE.] In 911 systems that have been 
 88.29  approved by the department of administration commissioner for a 
 88.30  local location identification database, each wire line 
 88.31  telecommunications service provider shall provide current 
 88.32  customer names, service addresses, and telephone numbers to each 
 88.33  public safety answering point within the 911 system and shall 
 88.34  update the information according to a schedule prescribed by the 
 88.35  county 911 plan. Information provided under this subdivision 
 88.36  must be provided in accordance with the transactional record 
 89.1   disclosure requirements of the federal Electronic Communications 
 89.2   Privacy Act of 1986, United States Code, title 18, section 2703, 
 89.3   subsection (c), paragraph (1), subparagraph (B)(iv).  
 89.4      Sec. 107.  Minnesota Statutes 2002, section 403.09, 
 89.5   subdivision 1, is amended to read: 
 89.6      Subdivision 1.  [DEPARTMENT AUTHORITY.] At the request of 
 89.7   the department of administration commissioner of public safety, 
 89.8   the attorney general may commence proceedings in the district 
 89.9   court against any person or public or private body to enforce 
 89.10  the provisions of this chapter. 
 89.11     Sec. 108.  Minnesota Statutes 2002, section 403.11, is 
 89.12  amended to read: 
 89.13     403.11 [911 SYSTEM COST ACCOUNTING REQUIREMENTS; FEE.] 
 89.14     Subdivision 1.  [EMERGENCY TELECOMMUNICATIONS SERVICE FEE.] 
 89.15  (a) Each customer of a wireless or wire line telecommunications 
 89.16  service provider that furnishes service capable of originating a 
 89.17  911 emergency telephone call is assessed a fee to cover the 
 89.18  costs of ongoing maintenance and related improvements for 
 89.19  trunking and central office switching equipment for 911 
 89.20  emergency telecommunications service, plus administrative and 
 89.21  staffing costs of the department of administration commissioner 
 89.22  related to managing the 911 emergency telecommunications service 
 89.23  program.  Recurring charges by a wire line telecommunications 
 89.24  service provider for updating the information required by 
 89.25  section 403.07, subdivision 3, must be paid by the 
 89.26  commissioner of administration if the wire line 
 89.27  telecommunications service provider is included in an approved 
 89.28  911 plan and the charges are made pursuant to tariff, price 
 89.29  list, or contract.  The commissioner of administration shall 
 89.30  transfer an amount equal to two cents a month from The fee 
 89.31  assessed under this section on wireless telecommunications 
 89.32  services to the commissioner of public safety must also be used 
 89.33  for the purpose of offsetting the costs, including 
 89.34  administrative and staffing costs, incurred by the state patrol 
 89.35  division of the department of public safety in handling 911 
 89.36  emergency calls made from wireless phones.  
 90.1      (b) Money remaining in the 911 emergency telecommunications 
 90.2   service account after all other obligations are paid must not 
 90.3   cancel and is carried forward to subsequent years and may be 
 90.4   appropriated from time to time to the commissioner of 
 90.5   administration to provide financial assistance to counties for 
 90.6   the improvement of local emergency telecommunications services.  
 90.7   The improvements may include providing access to 911 service for 
 90.8   telecommunications service subscribers currently without access 
 90.9   and upgrading existing 911 service to include automatic number 
 90.10  identification, local location identification, automatic 
 90.11  location identification, and other improvements specified in 
 90.12  revised county 911 plans approved by the department commissioner.
 90.13     (c) The fee may not be less than eight cents nor more than 
 90.14  33 40 cents a month for each customer access line or other basic 
 90.15  access service, including trunk equivalents as designated by the 
 90.16  public utilities commission for access charge purposes and 
 90.17  including wireless telecommunications services.  With the 
 90.18  approval of the commissioner of finance, the commissioner of 
 90.19  administration public safety shall establish the amount of the 
 90.20  fee within the limits specified and inform the companies and 
 90.21  carriers of the amount to be collected.  When the revenue bonds 
 90.22  authorized under section 473.898, subdivision 1, have been fully 
 90.23  paid or defeased, the commissioner shall reduce the fee to 
 90.24  reflect that debt service on the bonds is no longer needed.  The 
 90.25  commissioner shall provide companies and carriers a minimum of 
 90.26  45 days' notice of each fee change.  For fiscal year 2003, the 
 90.27  commissioner of administration shall provide a minimum of 35 
 90.28  days' notice of each fee change.  The fee must be the same for 
 90.29  all customers.  
 90.30     (d) The fee must be collected by each wireless or wire line 
 90.31  telecommunications service provider subject to the fee.  Fees 
 90.32  are payable to and must be submitted to the commissioner of 
 90.33  administration monthly before the 25th of each month following 
 90.34  the month of collection, except that fees may be submitted 
 90.35  quarterly if less than $250 a month is due, or annually if less 
 90.36  than $25 a month is due.  Receipts must be deposited in the 
 91.1   state treasury and credited to a 911 emergency 
 91.2   telecommunications service account in the special revenue fund.  
 91.3   The money in the account may only be used for 911 
 91.4   telecommunications services as provided in paragraph (a). 
 91.5      (e) This subdivision does not apply to customers of 
 91.6   interexchange carriers. 
 91.7      (f) The installation and recurring charges for integrating 
 91.8   wireless 911 calls into enhanced 911 systems must be paid by the 
 91.9   commissioner if the 911 service provider is included in the 
 91.10  statewide design plan and the charges are made pursuant to 
 91.11  tariff, price list, or contract. 
 91.12     Subd. 3.  [METHOD OF PAYMENT.] (a) Any wireless or wire 
 91.13  line telecommunications service provider incurring reimbursable 
 91.14  costs under subdivision 1 shall submit an invoice itemizing rate 
 91.15  elements by county or service area to the commissioner of 
 91.16  administration for 911 services furnished under tariff, price 
 91.17  list, or contract.  Any wireless or wire line telecommunications 
 91.18  service provider is eligible to receive payment for 911 services 
 91.19  rendered according to the terms and conditions specified in the 
 91.20  contract.  Competitive local exchange carriers holding 
 91.21  certificates of authority from the public utilities commission 
 91.22  are eligible to receive payment for recurring 911 services 
 91.23  provided after July 1, 2001.  The commissioner shall pay the 
 91.24  invoice within 30 days following receipt of the invoice unless 
 91.25  the commissioner notifies the service provider that the 
 91.26  commissioner disputes the invoice.  
 91.27     (b) The commissioner of administration shall estimate the 
 91.28  amount required to reimburse wireless and wire line 
 91.29  telecommunications service providers for the state's obligations 
 91.30  under subdivision 1 and the governor shall include the estimated 
 91.31  amount in the biennial budget request.  
 91.32     Subd. 3a.  [TIMELY CERTIFICATION.] A certification must be 
 91.33  submitted to the commissioner of administration no later than 
 91.34  two years after commencing a new or additional eligible 911 
 91.35  service.  Any wireless or wire line telecommunications service 
 91.36  provider incurring reimbursable costs under this section at any 
 92.1   time before January 1, 2003, may certify those costs for payment 
 92.2   to the commissioner of administration according to this section 
 92.3   for a period of 90 days after January 1, 2003.  During this 
 92.4   period, the commissioner of administration shall reimburse any 
 92.5   wireless or wire line telecommunications service provider for 
 92.6   approved, certified costs without regard to any contrary 
 92.7   provision of this subdivision. 
 92.8      Subd. 3b.  [CERTIFICATION.] All wireless and wire line 
 92.9   telecommunications service providers shall submit a 
 92.10  self-certification form signed by an officer of the company to 
 92.11  the department commissioner with invoices for payment of an 
 92.12  initial or changed service described in the service provider's 
 92.13  911 contract.  The self-certification shall affirm that the 911 
 92.14  service contracted for is being provided and the costs invoiced 
 92.15  for the service are true and correct.  All certifications are 
 92.16  subject to verification and audit. 
 92.17     Subd. 3c.  [AUDIT.] If the commissioner of administration 
 92.18  determines that an audit is necessary to document the 
 92.19  certification described in subdivision 3b, the wireless or wire 
 92.20  line telecommunications service provider must contract with an 
 92.21  independent certified public accountant to conduct the audit.  
 92.22  The audit must be conducted according to generally accepted 
 92.23  accounting principles.  The wireless or wire line 
 92.24  telecommunications service provider is responsible for any costs 
 92.25  associated with the audit. 
 92.26     Subd. 4.  [LOCAL RECURRING COSTS.] Recurring costs of 
 92.27  telecommunications equipment and services at public safety 
 92.28  answering points must be borne by the local governmental agency 
 92.29  operating the public safety answering point or allocated 
 92.30  pursuant to section 403.10, subdivision 3.  Costs attributable 
 92.31  to local government electives for services not otherwise 
 92.32  addressed under section 403.11 or 403.113 must be borne by the 
 92.33  governmental agency requesting the elective service. 
 92.34     Subd. 5.  [TARIFF NOTIFICATION.] Wire line 
 92.35  telecommunications service providers or wireless 
 92.36  telecommunications service providers holding eligible 
 93.1   telecommunications carrier status shall give notice to the 
 93.2   department of administration commissioner and any other affected 
 93.3   governmental agency of tariff or price list changes related to 
 93.4   911 service at the same time that the filing is made with the 
 93.5   public utilities commission. 
 93.6      Sec. 109.  Minnesota Statutes 2002, section 403.113, is 
 93.7   amended to read: 
 93.8      403.113 [ENHANCED 911 SERVICE COSTS; FEE.] 
 93.9      Subdivision 1.  [FEE.] (a) Each customer receiving service 
 93.10  from a wireless or wire line telecommunications service provider 
 93.11  is assessed a fee to fund implementation, operation, 
 93.12  maintenance, enhancement, and expansion of enhanced 911 service, 
 93.13  including acquisition of necessary equipment and the costs of 
 93.14  the commissioner to administer the program.  The actual fee 
 93.15  assessed under section 403.11 and the enhanced 911 service fee 
 93.16  must be collected as one amount and may not exceed the amount 
 93.17  specified in section 403.11, subdivision 1, paragraph (c). 
 93.18     (b) The enhanced 911 service fee must be collected and 
 93.19  deposited in the same manner as the fee in section 403.11 and 
 93.20  used solely for the purposes of paragraph (a) and subdivision 3. 
 93.21     (c) The commissioner of the department of administration, 
 93.22  in consultation with counties and 911 system users, shall 
 93.23  determine the amount of the enhanced 911 service fee and.  The 
 93.24  fee must include at least 10 cents per month to be distributed 
 93.25  under subdivision 2.  The commissioner shall inform wireless and 
 93.26  wire line telecommunications service providers that provide 
 93.27  service capable of originating a 911 emergency telephone call of 
 93.28  the total amount of the 911 service fees in the same manner as 
 93.29  provided in section 403.11. 
 93.30     Subd. 2.  [DISTRIBUTION OF MONEY.] (a) After payment of the 
 93.31  costs of the department of administration commissioner to 
 93.32  administer the program, the commissioner shall distribute the 
 93.33  money collected under this section as follows: 
 93.34     (1) one-half of the amount equally to all qualified 
 93.35  counties, and after October 1, 1997, to all qualified counties, 
 93.36  existing ten public safety answering points operated by the 
 94.1   Minnesota state patrol, and each governmental entity operating 
 94.2   the individual public safety answering points serving the 
 94.3   metropolitan airports commission, the Red Lake Indian 
 94.4   Reservation, and the University of Minnesota police department; 
 94.5   and 
 94.6      (2) the remaining one-half to qualified counties and cities 
 94.7   with existing 911 systems based on each county's or city's 
 94.8   percentage of the total population of qualified counties and 
 94.9   cities.  The population of a qualified city with an existing 
 94.10  system must be deducted from its county's population when 
 94.11  calculating the county's share under this clause if the city 
 94.12  seeks direct distribution of its share. 
 94.13     (b) A county's share under subdivision 1 must be shared pro 
 94.14  rata between the county and existing city systems in the 
 94.15  county.  A county or city or other governmental entity as 
 94.16  described in paragraph (a), clause (1), shall deposit money 
 94.17  received under this subdivision in an interest-bearing fund or 
 94.18  account separate from the governmental entity's general fund and 
 94.19  may use money in the fund or account only for the purposes 
 94.20  specified in subdivision 3. 
 94.21     (c) A county or city or other governmental entity as 
 94.22  described in paragraph (a), clause (1), is not qualified to 
 94.23  share in the distribution of money for enhanced 911 service if 
 94.24  it has not implemented enhanced 911 service before December 31, 
 94.25  1998. 
 94.26     (d) For the purposes of this subdivision, "existing city 
 94.27  system" means a city 911 system that provides at least basic 911 
 94.28  service and that was implemented on or before April 1, 1993.  
 94.29     Subd. 3.  [LOCAL EXPENDITURES.] (a) Money distributed under 
 94.30  subdivision 2 for enhanced 911 service may be spent on enhanced 
 94.31  911 system costs for the purposes stated in subdivision 1, 
 94.32  paragraph (a).  In addition, money may be spent to lease, 
 94.33  purchase, lease-purchase, or maintain enhanced 911 equipment, 
 94.34  including telephone equipment; recording equipment; computer 
 94.35  hardware; computer software for database provisioning, 
 94.36  addressing, mapping, and any other software necessary for 
 95.1   automatic location identification or local location 
 95.2   identification; trunk lines; selective routing equipment; the 
 95.3   master street address guide; dispatcher public safety answering 
 95.4   point equipment proficiency and operational skills; pay for 
 95.5   long-distance charges incurred due to transferring 911 calls to 
 95.6   other jurisdictions; and the equipment necessary within the 
 95.7   public safety answering point for community alert systems and to 
 95.8   notify and communicate with the emergency services requested by 
 95.9   the 911 caller. 
 95.10     (b) Money distributed for enhanced 911 service may not be 
 95.11  spent on: 
 95.12     (1) purchasing or leasing of real estate or cosmetic 
 95.13  additions to or remodeling of communications centers; 
 95.14     (2) mobile communications vehicles, fire engines, 
 95.15  ambulances, law enforcement vehicles, or other emergency 
 95.16  vehicles; 
 95.17     (3) signs, posts, or other markers related to addressing or 
 95.18  any costs associated with the installation or maintenance of 
 95.19  signs, posts, or markers. 
 95.20     Subd. 4.  [AUDITS.] Each county and city or other 
 95.21  governmental entity as described in subdivision 2, paragraph 
 95.22  (a), clause (1), shall conduct an annual audit on the use of 
 95.23  funds distributed to it for enhanced 911 service.  A copy of 
 95.24  each audit report must be submitted to the commissioner of 
 95.25  administration. 
 95.26     Sec. 110.  Minnesota Statutes 2002, section 458D.17, 
 95.27  subdivision 5, is amended to read: 
 95.28     Subd. 5.  [AUDIT.] The board shall provide for and pay the 
 95.29  cost of an independent annual audit of its official books and 
 95.30  records by the state public examiner auditor or a certified 
 95.31  public accountant. 
 95.32     Sec. 111.  Minnesota Statutes 2002, section 471.696, is 
 95.33  amended to read: 
 95.34     471.696 [FISCAL YEAR; DESIGNATION.] 
 95.35     Beginning in 1979, the fiscal year of a city and all of its 
 95.36  funds shall be the calendar year, except that a city may, by 
 96.1   resolution, provide that the fiscal year for city-owned nursing 
 96.2   homes be the reporting year designated by the commissioner of 
 96.3   human services.  Beginning in 1994, the fiscal year of a town 
 96.4   and all of its funds shall be the calendar year.  The state 
 96.5   auditor may upon request of a town and a showing of inability to 
 96.6   conform, extend the deadline for compliance with this section 
 96.7   for one year. 
 96.8      Sec. 112.  Minnesota Statutes 2002, section 471.999, is 
 96.9   amended to read: 
 96.10     471.999 [REPORT TO LEGISLATURE.] 
 96.11     The commissioner of employee relations shall report to the 
 96.12  legislature by January 1 of each year on the status of 
 96.13  compliance with section 471.992, subdivision 1, by governmental 
 96.14  subdivisions. 
 96.15     The report must include a list of the political 
 96.16  subdivisions in compliance with section 471.992, subdivision 1, 
 96.17  and the estimated cost of compliance.  The report must also 
 96.18  include a list of political subdivisions found by the 
 96.19  commissioner to be not in compliance, the basis for that 
 96.20  finding, recommended changes to achieve compliance, estimated 
 96.21  cost of compliance, and recommended penalties, if any.  The 
 96.22  commissioner's report must include a list of subdivisions that 
 96.23  did not comply with the reporting requirements of this section.  
 96.24  The commissioner may request, and a subdivision shall provide, 
 96.25  any additional information needed for the preparation of a 
 96.26  report under this subdivision. 
 96.27     Notwithstanding any rule to the contrary, beginning in 
 96.28  2005, a political subdivision must report on its compliance with 
 96.29  the requirements of sections 471.991 to 471.999 no more 
 96.30  frequently than once every five years.  No report from a 
 96.31  political subdivision is required for 2003 and 2004. 
 96.32     Sec. 113.  Minnesota Statutes 2002, section 473.891, 
 96.33  subdivision 10, is amended to read: 
 96.34     Subd. 10.  [SECOND PHASE.] "Second phase" means the 
 96.35  metropolitan radio board building subsystems for providing 
 96.36  assistance to local government units building subsystems in the 
 97.1   metropolitan area that did not build their own subsystems in the 
 97.2   first phase. 
 97.3      Sec. 114.  Minnesota Statutes 2002, section 473.891, is 
 97.4   amended by adding a subdivision to read: 
 97.5      Subd. 11.  [THIRD PHASE.] "Third phase" means an extension 
 97.6   of the backbone system to serve the southeast and central 
 97.7   districts of the state patrol. 
 97.8      Sec. 115.  Minnesota Statutes 2002, section 473.898, 
 97.9   subdivision 1, is amended to read: 
 97.10     Subdivision 1.  [AUTHORIZATION.] After consulting with the 
 97.11  commissioner of finance, the council, if requested by a vote of 
 97.12  at least two-thirds of all of the members of the metropolitan 
 97.13  radio board public safety radio communication system planning 
 97.14  committee established under section 473.097, may, by resolution, 
 97.15  authorize the issuance of its revenue bonds for any of the 
 97.16  following purposes to: 
 97.17     (1) provide funds for regionwide mutual aid and emergency 
 97.18  medical services communications; 
 97.19     (2) provide funds for the elements of the first phase of 
 97.20  the regionwide public safety radio communications system that 
 97.21  the board determines are of regionwide benefit and support 
 97.22  mutual aid and emergency medical services communication 
 97.23  including, but not limited to, costs of master controllers of 
 97.24  the backbone; 
 97.25     (3) provide money for the second phase of the public safety 
 97.26  radio communication system; or 
 97.27     (4) provide money for the third phase of the public safety 
 97.28  radio communication system; 
 97.29     (5) to the extent money is available after meeting the 
 97.30  needs described in clauses (1) to (3), provide money to 
 97.31  reimburse local units of government for amounts expended for 
 97.32  capital improvements to the first phase system previously paid 
 97.33  for by the local government units; or 
 97.34     (6) refund bonds issued under this section. 
 97.35     Sec. 116.  Minnesota Statutes 2002, section 473.898, 
 97.36  subdivision 3, is amended to read: 
 98.1      Subd. 3.  [LIMITATIONS.] (a) The principal amount of the 
 98.2   bonds issued pursuant to subdivision 1, exclusive of any 
 98.3   original issue discount, shall not exceed the amount of 
 98.4   $10,000,000 plus the amount the council determines necessary to 
 98.5   pay the costs of issuance, fund reserves, debt service, and pay 
 98.6   for any bond insurance or other credit enhancement. 
 98.7      (b) In addition to the amount authorized under paragraph 
 98.8   (a), the council may issue bonds under subdivision 1 in a 
 98.9   principal amount of $3,306,300, plus the amount the council 
 98.10  determines necessary to pay the cost of issuance, fund reserves, 
 98.11  debt service, and any bond insurance or other credit 
 98.12  enhancement.  The proceeds of bonds issued under this paragraph 
 98.13  may not be used to finance portable or subscriber radio sets. 
 98.14     (c) In addition to the amount authorized under paragraphs 
 98.15  (a) and (b), the council may issue bonds under subdivision 1 in 
 98.16  a principal amount of $12,000,000 $18,000,000, plus the amount 
 98.17  the council determines necessary to pay the costs of issuance, 
 98.18  fund reserves, debt service, and any bond insurance or other 
 98.19  credit enhancement.  The proceeds of bonds issued under this 
 98.20  paragraph must be used to pay up to 30 50 percent of the cost to 
 98.21  a local government unit of building a subsystem and may not be 
 98.22  used to finance portable or subscriber radio sets.  The bond 
 98.23  proceeds may be used to make improvements to an existing 800 MHz 
 98.24  radio system that will interoperate with the regionwide public 
 98.25  safety radio communication system, provided that the 
 98.26  improvements conform to the board's plan and technical 
 98.27  standards.  The council must time the sale and issuance of the 
 98.28  bonds so that the debt service on the bonds can be covered by 
 98.29  the additional revenue that will become available in the fiscal 
 98.30  year ending June 30, 2005, generated under section 403.11 and 
 98.31  appropriated under section 473.901.  
 98.32     (d) In addition to the amount authorized under paragraphs 
 98.33  (a) to (c), the council may issue bonds under subdivision 1 in a 
 98.34  principal amount of up to $27,000,000, plus the amount the 
 98.35  council determines necessary to pay the costs of issuance, fund 
 98.36  reserves, debt service, and any bond insurance or other credit 
 99.1   enhancement.  The proceeds of bonds issued under this paragraph 
 99.2   are appropriated to the commissioner of public safety for phase 
 99.3   three of the public safety radio communication system.  In 
 99.4   anticipation of the receipt by the commissioner of public safety 
 99.5   of the bond proceeds, the metropolitan radio board may advance 
 99.6   money from its operating appropriation to the commissioner of 
 99.7   public safety to pay for design and preliminary engineering for 
 99.8   phase three.  The commissioner of public safety must return 
 99.9   these amounts to the metropolitan radio board when the bond 
 99.10  proceeds are received. 
 99.11     Sec. 117.  Minnesota Statutes 2002, section 473.901, is 
 99.12  amended to read: 
 99.13     473.901 [ADMINISTRATION DEPARTMENT APPROPRIATION; 
 99.14  TRANSFERS; BUDGET.] 
 99.15     Subdivision 1.  [STANDING APPROPRIATION; COSTS COVERED.] 
 99.16  For each fiscal year beginning with the fiscal year commencing 
 99.17  July 1, 1997, the amount necessary to pay the following costs is 
 99.18  appropriated to the commissioner of administration public safety 
 99.19  from the 911 emergency telephone telecommunications service 
 99.20  account established under section 403.11: 
 99.21     (1) debt service costs and reserves for bonds issued 
 99.22  pursuant to section 473.898; 
 99.23     (2) repayment of the right-of-way acquisition loans; 
 99.24     (3) costs of design, construction, maintenance of, and 
 99.25  improvements to those elements of the first and, second, and 
 99.26  third phases that support mutual aid communications and 
 99.27  emergency medical services; 
 99.28     (4) recurring charges for leased sites and equipment for 
 99.29  those elements of the first and, second, and third phases that 
 99.30  support mutual aid and emergency medical communication services; 
 99.31  or 
 99.32     (5) aid to local units of government for sites and 
 99.33  equipment in support of mutual aid and emergency medical 
 99.34  communications services. 
 99.35     This appropriation shall be used to pay annual debt service 
 99.36  costs and reserves for bonds issued pursuant to section 473.898 
100.1   prior to use of fee money to pay other costs eligible under this 
100.2   subdivision.  In no event shall the appropriation for each 
100.3   fiscal year exceed an amount equal to four cents a month for 
100.4   each customer access line or other basic access service, 
100.5   including trunk equivalents as designated by the public 
100.6   utilities commission for access charge purposes and including 
100.7   cellular and other nonwire access services, in the fiscal year.  
100.8   Beginning July 1, 2004, this amount will increase to 5.5 13 
100.9   cents a month.  
100.10     Subd. 2.  [RADIO BOARD BUDGET.] The metropolitan council 
100.11  shall transmit the annual budget of the radio board to the 
100.12  commissioner of administration public safety no later than 
100.13  December 15 of each year.  The commissioner of administration 
100.14  shall include all eligible costs approved by the radio board for 
100.15  the regionwide public safety communication system in its the 
100.16  commissioner's request for legislative appropriations from the 
100.17  911 emergency telephone telecommunications service fee account.  
100.18  All eligible costs approved by the radio board shall be included 
100.19  in the commissioner of administration's appropriation request.  
100.20     Subd. 3.  [MONTHLY APPROPRIATION TRANSFERS.] Each month, 
100.21  before the 25th day of the month, the commissioner of 
100.22  administration shall transmit to the metropolitan council 1/12 
100.23  of its total approved appropriation for the regionwide public 
100.24  safety communication system. 
100.25     Subd. 4.  [IMPLEMENTATION OF PHASES THREE TO SIX.] To 
100.26  implement phases three to six of the statewide public safety 
100.27  radio communication system, the commissioner of public safety 
100.28  shall contract with the commissioner of transportation to 
100.29  construct, own, operate, maintain, and enhance the elements of 
100.30  phases three to six identified in the plan developed under 
100.31  section 473.907.  The commissioner of transportation, under 
100.32  appropriate state law, shall contract for, or procure by 
100.33  purchase or lease (including joint purchase and lease 
100.34  agreements), construction, installation of materials, supplies 
100.35  and equipment, and other services as may be needed to build, 
100.36  operate, and maintain phases three to six of the system. 
101.1      Sec. 118.  Minnesota Statutes 2002, section 473.902, is 
101.2   amended by adding a subdivision to read: 
101.3      Subd. 6.  [OPERATING COSTS OF PHASES THREE TO SIX.] (a) The 
101.4   ongoing costs of the commissioner in operating phases three to 
101.5   six of the statewide public safety radio communication system 
101.6   shall be allocated among and paid by the following users, all in 
101.7   accordance with the statewide public safety radio communication 
101.8   system plan developed by the planning committee under section 
101.9   473.907: 
101.10     (1) the state of Minnesota for its operations using the 
101.11  system; 
101.12     (2) all local government units using the system; and 
101.13     (3) other eligible users of the system. 
101.14     (b) Each local government and other eligible users of 
101.15  phases three to six of the system shall pay to the commissioner 
101.16  all sums charged under this section, at the times and in the 
101.17  manner determined by the commissioner.  The governing body of 
101.18  each local government shall take all action that may be 
101.19  necessary to provide the funds required for these payments and 
101.20  to make the payments when due.  
101.21     (c) If the governing body of any local government using 
101.22  phase three, four, five, or six of the system fails to meet any 
101.23  payment to the commissioner under this subdivision when due, the 
101.24  commissioner may certify to the auditor of the county in which 
101.25  the government unit is located the amount required for payment 
101.26  of the amount due with interest at six percent per year.  The 
101.27  auditor shall levy and extend the amount due, with interest, as 
101.28  a tax upon all taxable property in the government unit for the 
101.29  next calendar year, free from any existing limitations imposed 
101.30  by law or charter.  This tax shall be collected in the same 
101.31  manner as the general taxes of the government unit, and the 
101.32  proceeds of the tax, when collected, shall be paid by the county 
101.33  treasurer to the commissioner and credited to the government 
101.34  unit for which the tax was levied. 
101.35     Sec. 119.  Minnesota Statutes 2002, section 473.907, 
101.36  subdivision 1, is amended to read: 
102.1      Subdivision 1.  [PLANNING COMMITTEE.] (a) The commissioner 
102.2   of public safety shall convene and chair a planning committee to 
102.3   develop a project plan for a statewide, shared, trunked public 
102.4   safety radio communication system. 
102.5      (b) The planning committee consists of the following 
102.6   members or their designees: 
102.7      (1) the commissioner of public safety; 
102.8      (2) the commissioner of transportation; 
102.9      (3) the commissioner of administration; 
102.10     (4) the commissioner of natural resources; 
102.11     (5) the chair of the metropolitan radio board; 
102.12     (6) the president of the Minnesota sheriffs' association; 
102.13     (7) a representative of the league of Minnesota cities from 
102.14  the metropolitan area; and 
102.15     (8) a representative of the league of Minnesota cities from 
102.16  greater Minnesota; and 
102.17     (9) a representative of the association of Minnesota 
102.18  counties from greater Minnesota. 
102.19     Additionally, the commissioner of finance or a designee 
102.20  shall serve on the committee as a nonvoting member.  
102.21     (c) The planning committee must implement the project plan 
102.22  and establish the statewide, shared trunked radio and 
102.23  communications system.  The commissioner of public safety is 
102.24  designated as the chair of the planning committee.  The 
102.25  commissioner of public safety and the planning committee have 
102.26  overall responsibility for the successful completion of 
102.27  statewide communications infrastructure system integration. 
102.28     (d) The planning committee must establish one or more 
102.29  advisory groups for the purpose of advising on the plan, design, 
102.30  implementation and administration of the statewide, shared 
102.31  trunked radio and communications system.  At least one such 
102.32  group must consist of the following members: 
102.33     (1) the chair of the metropolitan radio board or a 
102.34  designee; 
102.35     (2) the chief of the Minnesota state patrol; 
102.36     (3) a representative of the Minnesota state sheriffs' 
103.1   association; 
103.2      (4) a representative of the Minnesota chiefs of police 
103.3   association; and 
103.4      (5) a representative of the Minnesota fire chiefs' 
103.5   association. 
103.6      Sec. 120.  Minnesota Statutes 2002, section 477A.014, 
103.7   subdivision 4, is amended to read: 
103.8      Subd. 4.  [COSTS.] The director of the office of strategic 
103.9   and long-range planning shall annually bill the commissioner of 
103.10  revenue for one-half of the costs incurred by the state 
103.11  demographer in the preparation of materials required by section 
103.12  4A.02.  The state auditor shall bill the commissioner of revenue 
103.13  for the costs of best practices reviews and the services 
103.14  provided by the government information division and the parts of 
103.15  the constitutional office that are related to the government 
103.16  information function, not to exceed $217,000 in fiscal year 1992 
103.17  and $217,000 in each fiscal year 1993 and thereafter.  The 
103.18  commissioner of administration shall bill the commissioner of 
103.19  revenue for the costs of the local government records program 
103.20  and the intergovernmental information systems activity, not to 
103.21  exceed $201,100 in fiscal year 1992 and $205,800 in each fiscal 
103.22  year 1993 and thereafter.  The commissioner of employee 
103.23  relations shall bill the commissioner of revenue for the costs 
103.24  of administering the local government pay equity function, not 
103.25  to exceed $56,000 in fiscal year 1992 and $55,000 in each fiscal 
103.26  year 1993 and thereafter.  
103.27     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004.  
103.28     Sec. 121.  Laws 1998, chapter 366, section 80, as amended 
103.29  by Laws 2001, First Special Session chapter 10, article 2, 
103.30  section 86, is amended to read: 
103.31     Sec. 80.  [SETTLEMENT DIVISION; TRANSFER OF JUDGES.] 
103.32     The office of administrative hearings shall establish a 
103.33  settlement division.  The workers' compensation judges at the 
103.34  department of labor and industry, together with their support 
103.35  staff, offices, furnishings, equipment, and supplies, are 
103.36  transferred to the settlement division of the office of 
104.1   administrative hearings.  Minnesota Statutes, section 15.039, 
104.2   applies to the transfer of employees.  The settlement division 
104.3   of the office of administrative hearings shall maintain offices 
104.4   in either Hennepin or Ramsey county and the cities city of 
104.5   Duluth and Detroit Lakes.  The office of a judge in the 
104.6   settlement division of the office of administrative hearings and 
104.7   the support staff of the judge may be located in a building that 
104.8   contains offices of the department of labor and industry.  The 
104.9   seniority of a workers' compensation judge at the office of 
104.10  administrative hearings, after the transfer, shall be based on 
104.11  the total length of service as a judge at either agency.  For 
104.12  purposes of the commissioner's plan under Minnesota Statutes, 
104.13  section 43A.18, subdivision 2, all compensation judges at the 
104.14  office of administrative hearings shall be considered to be in 
104.15  the same employment condition, the same organizational unit and 
104.16  qualified for work in either division. 
104.17     Sec. 122.  [TRANSITION; RETROACTIVE PAYMENT.] 
104.18     A lobbyist who was registered under Minnesota Statutes, 
104.19  section 10A.04, subdivision 2, on January 15, 2003, or a 
104.20  principal who was required to file a report under Minnesota 
104.21  Statutes, section 10A.04, subdivision 6, by March 15, 2003, must 
104.22  pay no later than August 1, 2003, a fee in the amount that would 
104.23  have been required under those sections had the fees imposed by 
104.24  this act been in effect at those times. 
104.25     Sec. 123.  [REAL ESTATE FILING SURCHARGE.] 
104.26     All funds collected during the fiscal year ending June 30, 
104.27  2004, and funds collected in the fiscal year ending June 30, 
104.28  2003, that carry forward into the fiscal year ending June 30, 
104.29  2004, pursuant to the additional 50-cent surcharges imposed by 
104.30  Laws 2001, First Special Session chapter 10, article 2, section 
104.31  77, and Laws 2002, chapter 365, are appropriated to the 
104.32  legislative coordinating commission for the real estate task 
104.33  force established by Laws 2000, chapter 391, for the purposes 
104.34  set forth in Laws 2001, First Special Session chapter 10, 
104.35  article 2, sections 98 to 101.  $25,000 from those funds are to 
104.36  be retained by the legislative coordinating commission for the 
105.1   services described in Laws 2001, First Special Session chapter 
105.2   10, article 2, section 99. 
105.3      Sec. 124.  [STUDY OF EMERGENCY MEDICAL SERVICES 
105.4   PREPAREDNESS.] 
105.5      The department of public safety shall seek grant funding 
105.6   from federal, state, and private sources.  If awarded funds, the 
105.7   department shall conduct a study of Minnesota's emergency 
105.8   medical service preparedness and its relationship to the 
105.9   department's overall homeland security planning.  The study must 
105.10  analyze the coordination of responses to emergencies, financial 
105.11  stability of the industries involved in providing prehospital 
105.12  emergency care, effect of primary service area determinations, 
105.13  availability in response to terroristic activity, and authority 
105.14  of governmental subdivisions in determining the level of care.  
105.15  The department shall report its findings to the chairs of the 
105.16  senate health and family security committee and crime prevention 
105.17  and public safety committee and the chairs of the house of 
105.18  representatives health and human services policy committee and 
105.19  judiciary policy and finance committee by July 1, 2004. 
105.20     Sec. 125.  [TRANSFER OF RESPONSIBILITIES.] 
105.21     The responsibilities of the commissioner of administration 
105.22  to provide 911 emergency telecommunications services under 
105.23  Minnesota Statutes, chapter 403, are transferred to the 
105.24  commissioner of public safety under Minnesota Statutes, section 
105.25  15.039.  The transfer may be completed in one or more phases as 
105.26  provided in an agreement between the commissioners of 
105.27  administration and public safety, but no later than the first 
105.28  Monday in January 2004. 
105.29     Sec. 126.  [GAMBLING CONTROL; FEE TRANSITION.] 
105.30     Effective July 1, 2003, all licensees regulated by the 
105.31  gambling control board must begin paying the applicable fees 
105.32  under Minnesota Statutes, sections 349.16 to 349.165.  The 
105.33  gambling control board shall provide a onetime, prorated credit 
105.34  against these fees to licensees who paid for licenses before 
105.35  July 1, 2003, that were to extend beyond July 1, 2003.  
105.36     Sec. 127.  [CARRYFORWARD.] 
106.1      Notwithstanding Minnesota Statutes, section 16A.28, or 
106.2   other law to the contrary, funds encumbered by the judicial or 
106.3   executive agency for severance costs; unemployment compensation 
106.4   costs; and health, dental, and life insurance continuation costs 
106.5   resulting from state employee layoffs during the fiscal year 
106.6   ending June 30, 2003, may be carried forward and may be spent 
106.7   until January 1, 2004. 
106.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
106.9   following final enactment. 
106.10     Sec. 128.  [VACATION LIMIT.] 
106.11     A state employee in the unclassified service who takes 
106.12  voluntary unpaid leave of absence during the biennium ending 
106.13  June 30, 2005, must be allowed to accrue a vacation leave 
106.14  balance up to at least 300 hours through June 30, 2005.  
106.15     Sec. 129.  [GAMING STUDY.] 
106.16     If the legislature authorizes the state lottery to operate 
106.17  a gaming facility in the metropolitan area, the director of the 
106.18  state lottery shall contract with an independent entity to 
106.19  perform an analysis of the economic effects of the facility on 
106.20  existing tribal gaming facilities located in or within 100 miles 
106.21  of the metropolitan area. 
106.22     Sec. 130.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
106.23     (a) Appointing authorities in state government may allow 
106.24  each employee to take unpaid leaves of absence for up to 1,040 
106.25  hours between June 1, 2003, and June 30, 2005.  The 1,040 hour 
106.26  limit replaces, and is not in addition to, limits set in prior 
106.27  laws.  Each appointing authority approving such a leave shall 
106.28  allow the employee to continue accruing vacation and sick leave, 
106.29  be eligible for paid holidays and insurance benefits, accrue 
106.30  seniority, and accrue service credit and credited salary in the 
106.31  state retirement plans as if the employee had actually been 
106.32  employed during the time of leave.  An employee covered by the 
106.33  unclassified plan may voluntarily make the employee 
106.34  contributions to the unclassified plan during the leave of 
106.35  absence.  If the employee makes these contributions, the 
106.36  appointing authority must make the employer contribution.  If 
107.1   the leave of absence is for one full pay period or longer, any 
107.2   holiday pay shall be included in the first payroll warrant after 
107.3   return from the leave of absence.  The appointing authority 
107.4   shall attempt to grant requests for the unpaid leaves of absence 
107.5   consistent with the need to continue efficient operation of the 
107.6   agency.  However, each appointing authority shall retain 
107.7   discretion to grant or refuse to grant requests for leaves of 
107.8   absence and to schedule and cancel leaves, subject to the 
107.9   applicable provisions of collective bargaining agreements and 
107.10  compensation plans. 
107.11     (b) To receive eligible service credit and credited salary 
107.12  in a defined benefit plan, the member shall pay an amount equal 
107.13  to the applicable employee contribution rates.  If an employee 
107.14  pays the employee contribution for the period of the leave under 
107.15  this section, the appointing authority must pay the employer 
107.16  contribution.  The appointing authority may, at its discretion, 
107.17  pay the employee contributions.  Contributions must be made in a 
107.18  time and manner prescribed by the executive director of the 
107.19  Minnesota state retirement association. 
107.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
107.21  following final enactment. 
107.22     Sec. 131.  [OFFICIAL PUBLICATION STUDY.] 
107.23     Representatives of local public corporations, as defined in 
107.24  Minnesota Statutes, chapter 331A, must meet with representatives 
107.25  of qualified newspapers and report to the legislature by January 
107.26  15, 2004, on alternative means of official publication for local 
107.27  public corporations. 
107.28     Sec. 132.  [TRAINING SERVICES.] 
107.29     During the biennium ending June 30, 2005, state executive 
107.30  agencies must consider using services provided by the government 
107.31  training service before contracting with other outside vendors 
107.32  for similar services. 
107.33     Sec. 133.  [CRIMNET FINANCIAL AUDIT.] 
107.34     The legislative auditor must complete a financial audit of 
107.35  all components and expenditures of the group of projects 
107.36  generally referred to as CriMNet by March 1, 2004.  The audit 
108.1   must include a review of all contracts related to CriMNet for 
108.2   compliance with state law, including the laws and guidelines 
108.3   governing the issuance of contracts. 
108.4      Sec. 134.  [FEE SCHEDULE.] 
108.5      The campaign finance and public disclosure board, in 
108.6   consultation with lobbyists, political committees, political 
108.7   funds, principal campaign committees, and party units, shall 
108.8   develop an equitable schedule of fees to be imposed on them to 
108.9   recover the costs incurred by the board in regulating them.  The 
108.10  board must submit the recommended fee schedule to the 
108.11  legislature by January 15, 2004. 
108.12     Sec. 135.  [REVISOR'S INSTRUCTION.] 
108.13     The revisor of statutes shall renumber each section of 
108.14  Minnesota Statutes listed in column A with the number listed in 
108.15  column B.  The revisor shall also make necessary cross-reference 
108.16  changes consistent with the renumbering. 
108.17         Column A                          Column B
108.18         473.891                           403.21
108.19         473.893                           403.22
108.20         473.894                           403.23
108.21         473.895                           403.24
108.22         473.896                           403.25
108.23         473.897                           403.26
108.24         473.898                           403.27
108.25         473.899                           403.28
108.26         473.900                           403.29
108.27         473.901                           403.30
108.28         473.902                           403.31
108.29         473.903                           403.32
108.30         473.904                           403.33
108.31         473.905                           403.34
108.32         473.906                           403.35
108.33         473.907                           403.36
108.34     Sec. 136.  [REPEALER.] 
108.35     (a) Minnesota Statutes 2002, sections 3.305, subdivision 5; 
108.36  3A.11; 4A.055; 6.77; 16A.87; 16E.09; 149A.97, subdivision 8; 
109.1   163.10; and 306.97, are repealed. 
109.2      (b) Minnesota Rules, part 1950.1070, is repealed effective 
109.3   July 1, 2004. 
109.4      (c) Minnesota Statutes 2002, sections 12.221, subdivision 
109.5   5; 16B.50; and 16C.07, are repealed effective the day following 
109.6   final enactment. 
109.7      (d) Minnesota Statutes 2002, section 3.971, subdivision 8, 
109.8   is repealed effective July 1, 2004. 
109.9                              ARTICLE 3 
109.10                ECONOMIC DEVELOPMENT APPROPRIATIONS 
109.11  Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
109.12     The sums shown in the columns marked "APPROPRIATIONS" are 
109.13  appropriated from the general fund, or another named fund, to 
109.14  the agencies and for the purposes specified in this act, to be 
109.15  available for the fiscal years indicated for each purpose.  The 
109.16  figures "2004" and "2005," where used in this act, mean that the 
109.17  appropriation or appropriations listed under them are available 
109.18  for the year ending June 30, 2004, or June 30, 2005, 
109.19  respectively.  The term "first year" means the fiscal year 
109.20  ending June 30, 2004, and the term "second year" means the 
109.21  fiscal year ending June 30, 2005. 
109.22                          SUMMARY BY FUND
109.23                            2004          2005           TOTAL
109.24  General            $   31,091,000 $   30,364,000 $   61,455,000
109.25  Petroleum Tank 
109.26  Cleanup                 1,084,000      1,084,000      2,168,000
109.27  Workers'  
109.28  Compensation              615,000        835,000      1,450,000
109.29  TOTAL              $   32,790,000 $   32,283,000 $   65,073,000
109.30                                             APPROPRIATIONS 
109.31                                         Available for the Year 
109.32                                             Ending June 30 
109.33                                            2004         2005 
109.34  Sec. 2.  COMMERCE 
109.35  Subdivision 1.  Total 
109.36  Appropriation                     $   25,856,000 $   25,349,000
109.37                Summary by Fund
109.38  General              24,157,000    23,430,000
109.39  Petroleum    
110.1   Cleanup               1,084,000     1,084,000
110.2   Workers'     
110.3   Compensation            615,000       835,000
110.4   The amounts that may be spent from this 
110.5   appropriation for each program are 
110.6   specified in the following subdivisions.
110.7   Subd. 2.  Financial        
110.8   Examinations          
110.9        5,997,000      5,994,000
110.10  Subd. 3.  Petroleum Tank Release 
110.11  Cleanup Board            
110.12       1,084,000      1,084,000
110.13  This appropriation is from the 
110.14  petroleum tank release cleanup fund. 
110.15  Subd. 4.  Administrative Services 
110.16       5,518,000      5,518,000
110.17  The commissioner of commerce, after 
110.18  July 1, 2003, and before June 30, 2005, 
110.19  shall sell the unclaimed property 
110.20  identified by the legislative auditor 
110.21  in Finding 1 of the auditor's 
110.22  management letter dated March 20, 
110.23  2003.  To the degree this property has 
110.24  not been held for the three-year period 
110.25  required by law prior to sale, that 
110.26  three-year requirement is waived as to 
110.27  this property, and the commissioner 
110.28  shall sell the property. 
110.29  Subd. 5.  Market Assurance    
110.30       6,402,000      5,897,000
110.31                Summary by Fund
110.32  General               5,787,000     5,062,000
110.33  Workers' Compensation   615,000       835,000
110.34  Subd. 6.  Energy and 
110.35  Telecommunications                
110.36       4,349,000      4,349,000
110.37  After July 1, 2003, but before 
110.38  September 30, 2003, the commissioner of 
110.39  finance shall transfer $2,500,000 of 
110.40  the unexpended balance in the 
110.41  contractor's recovery fund established 
110.42  under Minnesota Statutes, section 
110.43  326.975, subdivision 1, to the general 
110.44  fund. 
110.45  Subd. 7.  Weights and 
110.46  Measurement     
110.47       2,506,000      2,507,000
110.48  The fees proposed in the 2004-2005 
110.49  biennial budget for the weights and 
110.50  measurement division are approved. 
111.1   Of the unexpended balance in the 
111.2   liquefied petroleum gas account 
111.3   established under Minnesota Statutes, 
111.4   section 239.785, $500,000 is 
111.5   transferred to the general fund. 
111.6   Sec. 3.  BOARD OF ACCOUNTANCY            577,000        577,000 
111.7   Sec. 4.  BOARD OF ARCHITECTURE, 
111.8   ENGINEERING, LAND SURVEYING, 
111.9   LANDSCAPE ARCHITECTURE, 
111.10  GEOSCIENCE, AND INTERIOR 
111.11  DESIGN                                   785,000        785,000 
111.12  Sec. 5.  BOARD OF BARBER    
111.13  EXAMINERS                                127,000        127,000 
111.14  Sec. 6.  PUBLIC UTILITIES  
111.15  COMMISSION                             4,163,000      4,163,000 
111.16  Sec. 7.  COUNCIL ON BLACK  
111.17  MINNESOTANS                              282,000        282,000 
111.18  Sec. 8.  COUNCIL ON        
111.19  CHICANO-LATINO AFFAIRS                   275,000        275,000 
111.20  Sec. 9.  COUNCIL ON 
111.21  ASIAN-PACIFIC MINNESOTANS                243,000        243,000 
111.22  Sec. 10.  INDIAN AFFAIRS    
111.23  COUNCIL                                  482,000        482,000 
111.24                             ARTICLE 4 
111.25                 ECONOMIC DEVELOPMENT AND COMMERCE 
111.26     Section 1.  [60A.035] [GOVERNMENT CONTROLLED OR OWNED 
111.27  COMPANY PROHIBITED FROM TRANSACTING BUSINESS.] 
111.28     (a) No insurance company the voting control or ownership of 
111.29  which is held in whole or substantial part by any government or 
111.30  governmental agency or entity having a tax exemption under 
111.31  section 501(c)(27)(B) or 115 of the Internal Revenue Code of 
111.32  1986 or which is operated for or by any such government or 
111.33  agency or entity having a tax exemption under section 
111.34  501(c)(27)(B) or 115 of the Internal Revenue Code of 1986 is 
111.35  authorized to transact insurance in this state.  Membership in a 
111.36  mutual company, subscribership in a reciprocal insurer, 
111.37  ownership of stock of an insurer by the alien property custodian 
111.38  or similar official of the United States, or supervision of an 
111.39  insurer by public insurance supervisory authority is not 
111.40  considered to be an ownership, control, or operation of the 
111.41  insurer for the purposes of this section. 
111.42     (b) This section does not apply to an insurance company if 
111.43  its sole insurance business in this state is providing workers' 
112.1   compensation insurance and associated employers' liability 
112.2   coverage to an employer principally located in the insurer's 
112.3   state of domicile whose employee may receive benefits under 
112.4   section 176.041, subdivision 4, provided the operations of the 
112.5   employer are for fewer than 30 consecutive days in this state 
112.6   and provided the employer has no other significant contacts with 
112.7   this state. 
112.8      (c) This section does not apply to a fund established under 
112.9   section 16B.85, subdivision 2. 
112.10     Sec. 2.  Laws 2002, chapter 331, section 19, is amended to 
112.11  read:  
112.12     Sec. 19.  [EFFECTIVE DATE.] 
112.13     Sections 16 and 17 are effective July 1, 2003 2004. 
112.14     Sec. 3.  [AMBULANCE SERVICE LIABILITY INSURANCE STUDY.] 
112.15     The commissioner of commerce shall study the availability 
112.16  and cost to ambulance services of vehicle and malpractice 
112.17  insurance and the factors influencing cost increases.  The 
112.18  commissioner shall report the results of this study and 
112.19  recommendations on means to ensure continued availability of 
112.20  affordable insurance to the legislature by January 10, 2004. 
112.21     Sec. 4.  [REPEALER.] 
112.22     Minnesota Statutes, section 155A.03, subdivisions 14 and 
112.23  15; and 155A.07, subdivision 9, are repealed.