HF 1481

Conference Committee Report - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; appropriating money for
the general legislative and administrative expenses of
state government; modifying provisions related to
state and local government operations; amending
Minnesota Statutes 2004, sections 11A.04; 11A.07,
subdivisions 4, 5; 15B.17, subdivision 1; 16A.1286,
subdivisions 2, 3; 16A.152, subdivision 2; 16A.1522,
subdivision 1; repealing Minnesota Statutes 2004,
sections 16A.1522, subdivision 4; 16A.30.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

STATE GOVERNMENT APPROPRIATIONS

Section 1. new text begin STATE GOVERNMENT APPROPRIATIONS.
new text end

The sums shown in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or another fund named, to
the agencies and for the purposes specified in this act, to be
available for the fiscal years indicated for each purpose. The
figures "2006" and "2007," where used in this act, mean that the
appropriation or appropriations listed under them are available
for the year ending June 30, 2006, or June 30, 2007,
respectively.
SUMMARY BY FUND

2006 2007 TOTAL

General $ 288,451,000 $ 290,288,000 $ 578,739,000

Health Care
Access 1,782,000 1,782,000 3,564,000

State Government
Special Revenue 2,178,000 2,194,000 4,372,000

Environmental 436,000 436,000 872,000

Remediation 484,000 484,000 968,000

Special Revenue 3,221,000 3,221,000 6,442,000

Highway User Tax
Distribution 2,097,000 2,097,000 4,194,000

Workers'
Compensation 7,552,000 7,458,000 15,010,000

TOTAL $ 306,201,000 $ 307,960,000 $ 614,161,000

APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007

Sec. 2. LEGISLATURE

Subdivision 1.

Total
Appropriation $56,725,000 $56,725,000

Summary by Fund

General 56,597,000 56,597,000

Health Care Access 128,000 128,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Senate

18,836,000 18,836,000

Subd. 3.

House of Representatives

25,343,000 25,343,000

Subd. 4.

Legislative
Coordinating Commission

12,546,000 12,546,000

Summary by Fund

General 12,418,000 12,418,000

Health Care Access 128,000 128,000

$360,000 the first year and $360,000
the second year are for public
information television, Internet,
Intranet, and other transmission of
legislative activities.

The Legislative Coordinating
Commission, in consultation with the
house and senate, shall recommend the
allocation of funds within this
subdivision.

On July 1, 2005, the commissioner of
finance shall transfer $1,764,000 of
unspent fees from the special revenue
fund dedicated for the Electronic Real
Estate Recording Task Force to the
general fund.

On July 1, 2005, the commissioner of
finance shall transfer $9,577,000 of
the legislature's accumulated
carryforward account balances to the
general fund.

Sec. 3.

GOVERNOR AND
LIEUTENANT GOVERNOR 3,497,000 3,496,000

This appropriation is to fund the
offices of the governor and lieutenant
governor.

$19,000 the first year and $19,000 the
second year are for necessary expenses
in the normal performance of the
governor's and lieutenant governor's
duties for which no other reimbursement
is provided.

Sec. 4.

STATE AUDITOR 8,256,000 8,256,000

Sec. 5.

ATTORNEY GENERAL 24,677,000 24,718,000

Summary by Fund

General 22,270,000 22,295,000

State Government
Special Revenue 1,778,000 1,794,000

Environmental 145,000 145,000

Remediation 484,000 484,000

Sec. 6.

SECRETARY OF STATE 5,867,000 6,038,000

Sec. 7.

CAMPAIGN FINANCE AND
PUBLIC DISCLOSURE BOARD 694,000 694,000

Sec. 8.

INVESTMENT BOARD 217,000 217,000

Sec. 9.

ADMINISTRATIVE HEARINGS 7,452,000 7,358,000

This appropriation is from the workers'
compensation fund.

Sec. 10. ADMINISTRATION

Subdivision 1.

Total
Appropriation 21,941,000 21,941,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Technology Services

1,803,000 1,803,000

Subd. 3.

State Facilities Services

3,058,000 3,058,000

Subd. 4.

State and Community Services

2,727,000 2,727,000

Subd. 5.

Administrative Management Services

4,562,000 4,562,000

Subd. 6.

Fiscal Agent

9,791,000 9,791,000

$7,888,000 the first year and
$7,888,000 the second year are for
office space costs of the legislature
and veterans organizations, for
ceremonial space, and for statutorily
free space.

$1,175,000 the first year and
$1,175,000 the second year are for
matching grants for public television.

$203,000 the first year and $203,000
the second year are for public
television equipment grants.

Equipment or matching grant allocations
shall be made after considering the
recommendations of the Minnesota Public
Television Association.

$17,000 the first year and $17,000 the
second year are for grants to the Twin
Cities regional cable channel.

$313,000 the first year and $313,000
the second year are for community
service grants to public educational
radio stations. The grants must be
allocated after considering the
recommendations of the Association of
Minnesota Public Educational Radio
Stations under Minnesota Statutes,
section 129D.14.

$195,000 the first year and $195,000
the second year are for equipment
grants to Minnesota Public Radio, Inc.

Any unencumbered balance remaining in
the first year for grants to public
television or radio stations does not
cancel and is available for the second
year.

Sec. 11.

CAPITOL AREA ARCHITECTURAL
AND PLANNING BOARD 262,000 262,000

During the biennium ending June 30,
2007, money received by the board from
public agencies, as provided by
Minnesota Statutes, section 15B.17,
subdivision 1, is appropriated to the
board.

Sec. 12. FINANCE

Subdivision 1.

Total
Appropriation 14,808,000 14,808,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

State Financial Management

8,447,000 8,447,000

Subd. 3.

Information and
Management Services

6,361,000 6,361,000

Sec. 13.

EMPLOYEE RELATIONS 5,667,000 5,556,000

Sec. 14. REVENUE

Subdivision 1.

Total
Appropriation 99,911,000 102,635,000

Summary by Fund

General 95,869,000 98,593,000

Health Care Access 1,654,000 1,654,000

Highway User
Tax Distribution 2,097,000 2,097,000

Environmental 291,000 291,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Tax System Management

83,497,000 85,591,000

Summary by Fund

General 79,455,000 81,549,000

Health Care Access 1,654,000 1,654,000

Highway User
Tax Distribution 2,097,000 2,097,000

Environmental 291,000 291,000

$5,096,000 the first year and
$6,190,000 the second year are for
additional activities to identify and
collect tax liabilities from
individuals and businesses that
currently do not pay all taxes owed.
This initiative is expected to result
in new general fund revenues of
$42,800,000 for the biennium ending
June 30, 2007.

The department must report to the
chairs of the house Ways and Means and
senate Finance Committees by March 1,
2006, and January 15, 2007, on the
following performance indicators:

(1) the number of corporations
noncompliant with the corporate tax
system each year and the percentage and
dollar amounts of valid tax liabilities
collected;

(2) the number of businesses
noncompliant with the sales and use tax
system and the percentage and dollar
amount of the valid tax liabilities
collected; and

(3) the number of individual
noncompliant cases resolved and the
percentage and dollar amounts of valid
tax liabilities collected.

The reports must also identify base
level expenditures and staff positions
related to compliance and audit
activities, including baseline
information as of January 1, 2004. The
information must be provided at the
budget activity level.

Subd. 3.

Accounts Receivable Management

16,414,000 17,044,000

$690,000 the first year and $1,320,000
the second year are for additional
activities to identify and collect tax
liabilities from individuals and
businesses that currently do not pay
all taxes owed. This initiative is
expected to result in new general
revenues of $25,200,000 for the
biennium ending June 30,2007.

Sec. 15. MILITARY AFFAIRS

Subdivision 1.

Total
Appropriation 17,554,000 17,554,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Maintenance of Training
Facilities

5,590,000 5,590,000

Subd. 3.

General Support

1,757,000 1,757,000

Subd. 4.

Enlistment Incentives

10,207,000 10,207,000

If appropriations for either year of
the biennium are insufficient, the
appropriation from the other year is
available. The appropriations for
enlistment incentives are available
until expended.

Sec. 16.

VETERANS AFFAIRS 4,038,000 4,038,000

Sec. 17.

VETERANS OF FOREIGN
WARS 85,000 85,000

For carrying out the provisions of Laws
1945, chapter 455.

Sec. 18.

MILITARY ORDER OF
THE PURPLE HEART 25,000 25,000

Sec. 19.

DISABLED AMERICAN VETERANS 53,000 53,000

For carrying out the provisions of Laws
1941, chapter 425.

Sec. 20.

GAMBLING CONTROL 2,800,000 2,800,000

This appropriation is from the special
revenue fund and is made from the
lawful gambling regulation account.

Sec. 21.

RACING COMMISSION 421,000 421,000

This appropriation is from the special
revenue fund and is made from the
racing and card playing regulation
account.

Sec. 22. STATE LOTTERY

Notwithstanding Minnesota Statutes,
section 349A.10, the operating budget
must not exceed $26,800,000 in fiscal
year 2006 and $27,400,000 in fiscal
year 2007 and thereafter.

On July 1, 2005, the director of the
State Lottery shall transfer unclaimed
prize funds in the amount of $2,187,000
accumulated prior to July 1, 2003, to
the state treasury. The prize funds,
that had not otherwise been
transferred, will be credited
$1,312,000, or 60 percent, to the
general fund and $875,000, or 40
percent, to the environment and natural
resources trust fund.

Sec. 23.

AMATEUR SPORTS
COMMISSION 300,000 300,000

Sec. 24.

TORT CLAIMS 161,000 161,000

To be spent by the commissioner of
finance.

If the appropriation for either year is
insufficient, the appropriation for the
other year is available for it.

Sec. 25.

MINNESOTA STATE
RETIREMENT SYSTEM 1,176,000 1,176,000

The amounts estimated to be needed for
each program are as follows:

(a) Legislators

783,000 802,000

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

(b) Constitutional Officers

393,000 403,000

Under Minnesota Statutes, sections
352C.031, subdivision 5; 352C.04,
subdivision 3; and 352C.09, subdivision
2.

If an appropriation in this section for
either year is insufficient, the
appropriation for the other year is
available for it.

Sec. 26.

MINNEAPOLIS EMPLOYEES
RETIREMENT FUND 8,065,000 8,065,000

The amounts estimated to be needed
under Minnesota Statutes, section
422A.101, subdivision 3.

Sec. 27.

MINNEAPOLIS TEACHERS
RETIREMENT FUND 15,800,000 15,800,000

The amounts estimated to be needed are
as follows:

(a) Special Direct State Aid to First
Class City Teachers Retirement Funds

13,300,000 13,300,000

Authorized under Minnesota Statutes,
section 354A.12, subdivisions 3a and 3c.

(b) Special Direct State Matching Aid
to Minneapolis Teachers Retirement Fund

2,500,000 2,500,000

Authorized under Minnesota Statutes,
section 354A.12, subdivision 3b.

Sec. 28.

ST. PAUL TEACHERS
RETIREMENT FUND 2,967,000 2,967,000

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

Sec. 29.

COUNCIL ON BLACK
MINNESOTANS 282,000 282,000

Sec. 30.

COUNCIL ON
CHICANO-LATINO AFFAIRS 275,000 275,000

Sec. 31.

COUNCIL ON
ASIAN-PACIFIC MINNESOTANS 243,000 243,000

Sec. 32.

INDIAN AFFAIRS
COUNCIL 482,000 482,000

Sec. 33.

GENERAL CONTINGENT
ACCOUNTS 1,500,000 500,000

Summary by Fund

General 1,000,000 -0-

State Government
Special Revenue 400,000 400,000

Workers'
Compensation 100,000 100,000

The appropriations in this section may
only be spent with the approval of the
governor after consultation with the
Legislative Advisory Commission
pursuant to Minnesota Statutes, section
3.30.

If an appropriation in this section for
either year is insufficient, the
appropriation for the other year is
available for it.

If a contingent account appropriation
is made in one fiscal year, it should
be considered a biennial appropriation.

ARTICLE 2

STATE GOVERNMENT OPERATIONS

Section 1.

Minnesota Statutes 2004, section 11A.04, is
amended to read:

11A.04 DUTIES AND POWERS.

The state board shall:

(1) Act as trustees for each fund for which it invests or
manages money in accordance with the standard of care set forth
in section 11A.09 if state assets are involved and in accordance
with chapter 356A if pension assets are involved.

(2) Formulate policies and procedures deemed necessary and
appropriate to carry out its functions. Procedures adopted by
the board must allow fund beneficiaries and members of the
public to become informed of proposed board actions. Procedures
and policies of the board are not subject to the Administrative
Procedure Act.

(3) Employ an executive director as provided in section
11A.07.

(4) Employ investment advisors and consultants as it deems
necessary.

(5) Prescribe policies concerning personal investments of
all employees of the board to prevent conflicts of interest.

(6) Maintain a record of its proceedings.

(7) As it deems necessary, establish advisory committees
subject to section 15.059 to assist the board in carrying out
its duties.

(8) Not permit state funds to be used for the underwriting
or direct purchase of municipal securities from the issuer or
the issuer's agent.

(9) Direct the commissioner of finance to sell property
other than money that has escheated to the state when the board
determines that sale of the property is in the best interest of
the state. Escheated property must be sold to the highest
bidder in the manner and upon terms and conditions prescribed by
the board.

(10) Undertake any other activities necessary to implement
the duties and powers set forth in this section.

(11) Establish a formula or formulas to measure management
performance and return on investment. Public pension funds in
the state shall utilize the formula or formulas developed by the
state board.

(12) Except as otherwise provided in article XI, section 8,
of the Constitution of the state of Minnesota, employ, at its
discretion, qualified private firms to invest and manage the
assets of funds over which the state board has investment
management responsibility. There is annually appropriated to
the state board, from the assets of the funds for which the
state board utilizes a private investment manager, sums
sufficient to pay the costs of employing private firms. Each
year, by January 15, the board shall report to the governor and
legislature on the cost and the investment performance of each
investment manager employed by the board.

(13) Adopt an investment policy statement that includes
investment objectives, asset allocation, and the investment
management structure for the retirement fund assets under its
control. The statement may be revised at the discretion of the
state board. The state board shall seek the advice of the
council regarding its investment policy statement. Adoption of
the statement is not subject to chapter 14.

new text begin There is annually appropriated to the state board, from the
assets of the funds for which the state board provides
investment services, sums sufficient to pay the costs of all
necessary expenses for the administration of the board. These
sums will be deposited in the State Board of Investment
operating account, which must be established by the commissioner
of finance.
new text end

Sec. 2.

Minnesota Statutes 2004, section 11A.07,
subdivision 4, is amended to read:

Subd. 4.

Duties and powers.

The director, at the
direction of the state board, shall:

(1) plan, direct, coordinate, and execute administrative
and investment functions in conformity with the policies and
directives of the state board and the requirements of this
chapter and of chapter 356A;

(2) new text begin prepare and submit biennial and annual budgets to the
board and with the approval of the board submit the budgets to
the Department of Finance;
new text end

new text begin (3) new text end employ professional and clerical staff as deleted text begin is deleted text end necessary
deleted text begin within the complement limits established by the legislature deleted text end .
Employees whose primary responsibility is to invest or manage
money or employees who hold positions designated as unclassified
under section 43A.08, subdivision 1a, are in the unclassified
service of the state. Other employees are in the classified
service;

deleted text begin (3) deleted text end new text begin (4) new text end report to the state board on all operations under
the director's control and supervision;

deleted text begin (4) deleted text end new text begin (5) new text end maintain accurate and complete records of
securities transactions and official activities;

deleted text begin (5) deleted text end new text begin (6) new text end establish a policy relating to the purchase and
sale of securities on the basis of competitive offerings or
bids. The policy is subject to board approval;

deleted text begin (6) deleted text end new text begin (7) new text end cause securities acquired to be kept in the custody
of the commissioner of finance or other depositories consistent
with chapter 356A, as the state board deems appropriate;

deleted text begin (7) deleted text end new text begin (8) new text end prepare and file with the director of the
Legislative Reference Library, by December 31 of each year, a
report summarizing the activities of the state board, the
council, and the director during the preceding fiscal year. The
report must be prepared so as to provide the legislature and the
people of the state with a clear, comprehensive summary of the
portfolio composition, the transactions, the total annual rate
of return, and the yield to the state treasury and to each of
the funds whose assets are invested by the state board, and the
recipients of business placed or commissions allocated among the
various commercial banks, investment bankers, and brokerage
organizations. The report must contain financial statements for
funds managed by the board prepared in accordance with generally
accepted accounting principles;

deleted text begin (8) deleted text end new text begin (9) new text end require state officials from any department or
agency to produce and provide access to any financial documents
the state board deems necessary in the conduct of its investment
activities;

deleted text begin (9) deleted text end new text begin (10) new text end receive and expend legislative appropriations; new text begin and
new text end

deleted text begin (10) deleted text end new text begin (11) new text end undertake any other activities necessary to
implement the duties and powers set forth in this subdivision
consistent with chapter 356A.

Sec. 3.

Minnesota Statutes 2004, section 11A.07,
subdivision 5, is amended to read:

Subd. 5.

Apportionment of expenses.

deleted text begin The executive
director shall apportion the actual expenses incurred by the
board on an accrual basis among the several funds whose assets
are invested by the board based on the weighted average assets
under management during each quarter. The charge to each fund
must be calculated, billed, and paid on a quarterly basis in
accordance with procedures for interdepartmental payments
established by the commissioner of finance. The amounts
necessary to pay these charges are appropriated from the
investment earnings of each fund. Receipts must be credited to
the general fund as nondedicated receipts. deleted text end new text begin The annual expenses
incurred by the state board will be apportioned among the state
general fund, the retirement funds administered by the Minnesota
State Retirement System, Public Employees Retirement
Association, and Teachers Retirement Association, and all other
funds as follows:
new text end

new text begin (1) on a biennial basis, the state board, in accordance
with biennial budget procedures established by the commissioner
of finance, may request a direct appropriation that represents
the portion of the state board's expenses necessary to provide
investment services to the state general fund. This
appropriation must be deposited in the State Board of Investment
operating account;
new text end

new text begin (2) the executive director shall apportion the actual
expenses incurred by the state board, less the charge to the
state general fund, among the funds whose assets are invested by
the state board, with the exception of the state general fund,
based on the weighted average assets under management during the
fiscal year. The amounts necessary to pay these charges are
apportioned from the investment earnings of each fund. Receipts
must be credited to the State Board of Investment operating
account;
new text end

new text begin (3) the actual expenses apportioned and charged to the
funds, with the exception of the state general fund and the
retirement funds administered by the Minnesota State Retirement
System, Public Employees Retirement Association, and Teachers
Retirement Association, must be calculated, billed, and paid on
a quarterly basis in accordance with procedures for
interdepartmental payments established by the commissioner of
finance; and
new text end

new text begin (4) the annual estimated expenses to be incurred by the
state board that will be payable by the retirement funds
administered by the Minnesota State Retirement System, Public
Employees Retirement Association, and Teachers Retirement
Association must be deposited in the State Board of Investment
operating account on the first business day of each fiscal
year. A reconciliation of the actual expenses compared to the
estimated costs must occur at the end of each fiscal year with
any surplus or deficit being credited or debited to each of the
respective funds. The state board will present a statement of
accrued actual expenses to each fund at the end of each quarter
during each fiscal year.
new text end

Sec. 4.

Minnesota Statutes 2004, section 15B.17,
subdivision 1, is amended to read:

Subdivision 1.

Public bodies with proposals.

(a) Before
a state agency or other public body develops, to submit to the
legislature and the governor, a budget proposal or plans for
capital improvements within the Capitol Area, it must consult
with the board.

(b) The public body must provide enough money for the
board's review and planning if the board decides its review and
planning services are necessary. new text begin Money received by the board
under this subdivision and under section 15B.13, paragraph (e),
is appropriated to the board and does not cancel.
new text end

Sec. 5.

Minnesota Statutes 2004, section 16A.1286,
subdivision 2, is amended to read:

Subd. 2.

Billing procedures.

The commissioner may bill
up to $7,520,000 in each fiscal year for statewide systems
services provided to state agencies, judicial branch agencies,
the University of Minnesota, the Minnesota State Colleges and
Universities, and other entities. Billing must be based only on
usage of services relating to statewide systems deleted text begin provided by the
Intertechnologies Division deleted text end . Each agency shall transfer from
agency operating appropriations to the statewide systems account
the amount billed by the commissioner. Billing policies and
procedures related to statewide systems services must be
developed by the commissioner in consultation with the
commissioners of employee relations and administration, the
University of Minnesota, and the Minnesota State Colleges and
Universities.

Sec. 6.

Minnesota Statutes 2004, section 16A.1286,
subdivision 3, is amended to read:

Subd. 3.

Appropriation.

Money transferred into the
account is appropriated to the commissioner to pay for statewide
systems services deleted text begin during the biennium in which it is appropriated deleted text end .

Sec. 7.

Minnesota Statutes 2004, section 16A.152,
subdivision 2, is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the
basis of a new text begin November new text end forecast of general fund revenues and
expenditures, the commissioner of finance determines that there
will be a positive unrestricted budgetary general fund balance
at the close of the biennium, the commissioner of finance must
allocate money to the following accounts and purposes in
priority order:

(1) the cash flow account established in subdivision 1
until that account reaches $350,000,000;

(2) the budget reserve account established in subdivision
1a until that account reaches $653,000,000;

(3) the amount necessary to increase the aid payment
schedule for school district aids and credits payments in
section 127A.45 to not more than 90 percent new text begin rounded to the
nearest tenth of a percent new text end ; and

(4) the amount necessary to restore all or a portion of the
net aid reductions under section 127A.441 and to reduce the
property tax revenue recognition shift under section 123B.75,
subdivision 5, paragraph (c), and Laws 2003, First Special
Session chapter 9, article 5, section 34, as amended by Laws
2003, First Special Session chapter 23, section 20, by the same
amount.

(b) The amounts necessary to meet the requirements of this
section are appropriated from the general fund within two weeks
after the forecast is released or, in the case of transfers
under paragraph (a), clauses (3) and (4), as necessary to meet
the appropriations schedules otherwise established in statute.

(c) To the extent that a positive unrestricted budgetary
general fund balance is projected, appropriations under this
section must be made before deleted text begin any transfer is made under deleted text end section
16A.1522 new text begin takes effect new text end .

(d) The commissioner of finance shall certify the total
dollar amount of the reductions under paragraph (a), clauses (3)
and (4), to the commissioner of education. The commissioner of
education shall increase the aid payment percentage and reduce
the property tax shift percentage by these amounts and apply
those reductions to the current fiscal year and thereafter.

Sec. 8.

Minnesota Statutes 2004, section 16A.1522,
subdivision 1, is amended to read:

Subdivision 1.

Forecast.

If, on the basis of a forecast
of general fund revenues and expenditures in November of an
even-numbered year or February of an odd-numbered year, the
commissioner projects a positive unrestricted budgetary general
fund balance at the close of the biennium that exceeds one-half
of one percent of total general fund biennial revenues, the
commissioner shall designate the entire balance as available for
rebate to the taxpayers of this state. deleted text begin In forecasting,
projecting, or designating the unrestricted budgetary general
fund balance or general fund biennial revenue under this
section, the commissioner shall not include any balance or
revenue attributable to settlement payments received after July
1, 1998, and before July 1, 2001, as defined in Section IIB of
the settlement document, filed May 18, 1998, in State v. Philip
Morris, Inc., No. C1-94-8565 (Minnesota District Court, Second
Judicial District).
deleted text end

Sec. 9. new text begin VOLUNTARY UNPAID LEAVE OF ABSENCE.
new text end

new text begin (a) Appointing authorities in state government may allow
each employee to take unpaid leaves of absence for up to 1,040
hours between July 1, 2005, and June 30, 2007. The 1,040-hour
limit replaces, and is not in addition to, limits set in prior
laws. Each appointing authority approving such a leave shall
allow the employee to continue accruing vacation and sick leave,
be eligible for paid holidays and insurance benefits, accrue
seniority, and accrue service credit and credited salary in the
state retirement plans as if the employee had actually been
employed during the time of leave. An employee covered by the
unclassified plan may voluntarily make the employee
contributions to the unclassified plan during the leave of
absence. If the employee makes these contributions, the
appointing authority must make the employer contribution. If
the leave of absence is for one full pay period or longer, any
holiday pay shall be included in the first payroll warrant after
return from the leave of absence. The appointing authority
shall attempt to grant requests for the unpaid leaves of absence
consistent with the need to continue efficient operation of the
agency. However, each appointing authority shall retain
discretion to grant or refuse to grant requests for leaves of
absence and to schedule and cancel leaves, subject to the
applicable provisions of collective bargaining agreements and
compensation plans.
new text end

new text begin (b) To receive eligible service credit and credited salary
in a defined benefit plan, the member shall pay an amount equal
to the applicable employee contribution rates. If an employee
pays the employee contribution for the period of the leave under
this section, the appointing authority must pay the employer
contribution. The appointing authority may, at its discretion,
pay the employee contributions. Contributions must be made in a
time and manner prescribed by the executive director of the
Minnesota State Retirement Association.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 10. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 16A.1522, subdivision 4;
and 16A.30, are repealed.
new text end