HF 3311

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the organization and operation of state 
  1.3             government; appropriating money for the general 
  1.4             administrative expenses of state government; modifying 
  1.5             provisions relating to state government operations; 
  1.6             modifying budget preparation provisions; providing for 
  1.7             reimbursement of the health care access fund; 
  1.8             requiring licensure of employees eligible to make 
  1.9             sales on behalf of gambling distributors; amending 
  1.10            Minnesota Statutes 1996, sections 3.3005, by adding a 
  1.11            subdivision; 16A.055, subdivision 6; 16A.10, as 
  1.12            amended; 16A.102, subdivisions 1 and 2; 16A.105; 
  1.13            16A.11, subdivisions 3 and 3a; 16A.501; 16A.72; 
  1.14            16B.04, subdivision 4; 16B.30; 17.03, subdivision 11; 
  1.15            43A.04, subdivision 1a; 43A.317, subdivision 8; 
  1.16            45.012; 84.027, subdivision 14; 116.03, subdivision 
  1.17            2a; 116J.011; 144.05, subdivision 2; 174.02, 
  1.18            subdivision 1a; 175.001, subdivision 6; 190.09, 
  1.19            subdivision 2; 196.05, subdivision 2; 216A.07, 
  1.20            subdivision 6; 268.0122, subdivision 6; 270.02, 
  1.21            subdivision 3a; 299A.01, subdivision 1a; 349.12, by 
  1.22            adding a subdivision; 349.151, subdivision 4; 349.155, 
  1.23            subdivision 3; 349.161; 349.169, subdivision 3; 
  1.24            363.05, subdivision 3; and 469.177, subdivision 11; 
  1.25            Minnesota Statutes 1997 Supplement, sections 3.986, 
  1.26            subdivisions 2 and 4; 3.987, subdivisions 1 and 2; 
  1.27            3.988, subdivision 3; 3.989, subdivision 2; 16A.103, 
  1.28            subdivision 1; 16A.11, subdivision 1; 16A.641, 
  1.29            subdivision 4; 120.0111; 241.01, subdivision 3b; 
  1.30            245.03, subdivision 2; and 273.1398, subdivision 8; 
  1.31            Laws 1997, chapter 202, article 1, section 35, as 
  1.32            amended; Laws 1997, Second Special Session chapter 2, 
  1.33            section 8; repealing Minnesota Statutes 1996, sections 
  1.34            3.971, subdivision 3; 15.90; 15.91; and 15.92; 
  1.35            Minnesota Statutes 1997 Supplement, sections 3.987, 
  1.36            subdivision 3; 3.989, subdivisions 1, 3, and 4; 
  1.37            14.431; 16A.11, subdivisions 3b and 3c; and 241.015. 
  1.38  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.39  Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
  1.40     The sums in the columns headed "APPROPRIATIONS" are 
  1.41  appropriated from the general fund, or another named fund, to 
  2.1   the agencies and for the purposes specified to be available for 
  2.2   the fiscal years indicated for each purpose. 
  2.3                           SUMMARY BY FUND
  2.4                                             1998         1999
  2.5   General                           $    1,015,000 $   29,266,000
  2.6   Special Revenue                            -0-           15,000
  2.7   Natural Resources                          -0-           25,000
  2.8   Game and Fish                              -0-           33,000
  2.9   Trunk Highway                              -0-           55,000
  2.10                                             APPROPRIATIONS 
  2.11                                         Available for the Year 
  2.12                                             Ending June 30 
  2.13                                            1998         1999 
  2.14  Sec. 2.  ATTORNEY GENERAL                  -0-       22,524,000
  2.15  Sec. 3.  OFFICE OF STRATEGIC AND
  2.16  LONG-RANGE PLANNING                       15,000      1,265,000
  2.17  $15,000 is appropriated in fiscal year 
  2.18  1998 and $65,000 is appropriated in 
  2.19  fiscal year 1999 for census-related 
  2.20  activities. 
  2.21  $1,200,000 in fiscal year 1999 is for 
  2.22  the development of a generic 
  2.23  environmental impact statement for 
  2.24  animal feedlots.  The environmental 
  2.25  quality board is to carry out this 
  2.26  effort in cooperation with the 
  2.27  Minnesota pollution control agency, 
  2.28  department of agriculture, and 
  2.29  department of health.  The 
  2.30  appropriation is available until June 
  2.31  30, 2000. 
  2.32  Sec. 4.  DEPARTMENT OF
  2.33  ADMINISTRATION                             -0-        5,170,000
  2.34  $5,000,000 is appropriated in fiscal 
  2.35  year 1999 for modifications of state 
  2.36  business systems to address year 2000 
  2.37  changes.  This appropriation is added 
  2.38  to the appropriation for technology 
  2.39  management in Laws 1997, chapter 202, 
  2.40  article 1, section 12, subdivision 7. 
  2.41  $150,000 is appropriated in fiscal year 
  2.42  1999 for the office of citizenship and 
  2.43  volunteer services for coordinating the 
  2.44  Minnesota Alliance with Youth 
  2.45  initiative. 
  2.46  $20,000 is appropriated in fiscal year 
  2.47  1999 for a commemorative portrait of 
  2.48  the governor for the state capitol. 
  2.49  Sec. 5.  DEPARTMENT OF FINANCE         1,000,000          -0-  
  2.50  $1,000,000 is appropriated in fiscal 
  2.51  year 1998 for a loan to the city of 
  2.52  Cambridge. 
  3.1   Sec. 6.  INSURANCE PREMIUM
  3.2   SUPPLEMENT                                 -0-          435,000
  3.3                           SUMMARY BY FUND
  3.4   General Fund            -0-           307,000
  3.5   Water Recreation        -0-            23,000
  3.6   Snowmobile              -0-             2,000
  3.7   Special Revenue         -0-            15,000
  3.8   Game and Fish           -0-            33,000
  3.9   Trunk Highway           -0-            55,000
  3.10  The amounts appropriated are to the 
  3.11  commissioner of finance for the second 
  3.12  year of the biennium for transfer to 
  3.13  agencies affected by cost increases due 
  3.14  to the extension of eligibility for 
  3.15  employer-paid premiums for health, 
  3.16  dental, and life insurance to part-time 
  3.17  seasonal employees as provided in 
  3.18  collective bargaining agreements for 
  3.19  the current biennium. 
  3.20  The schedule provided in the 1998 
  3.21  supplemental budget recommendation 
  3.22  detail page supporting the governor's 
  3.23  request for these appropriations must 
  3.24  be applied when determining base-level 
  3.25  funding of affected agencies for the 
  3.26  biennium ending June 30, 2001. 
  3.27     Sec. 7.  Minnesota Statutes 1996, section 3.3005, is 
  3.28  amended by adding a subdivision to read: 
  3.29     Subd. 2a.  [REVIEW OF FEDERAL FUNDS SPENDING 
  3.30  REQUEST.] Twenty days after a governor's budget request that 
  3.31  includes a request to spend federal money is submitted to the 
  3.32  legislature, a state agency may expend money included in that 
  3.33  request unless, within the 20-day period, a member of the 
  3.34  legislative advisory commission requests further review.  If a 
  3.35  legislative advisory commission member requests further review 
  3.36  of a federal funds spending request, the agency may not expend 
  3.37  the federal funds until the request has been satisfied and 
  3.38  withdrawn, the expenditure is approved in law, or the regular 
  3.39  session of the legislature is adjourned for the year. 
  3.40     Sec. 8.  Minnesota Statutes 1997 Supplement, section 3.986, 
  3.41  subdivision 2, is amended to read: 
  3.42     Subd. 2.  [LOCAL FISCAL IMPACT.] (a) "Local fiscal impact" 
  3.43  means increased or decreased costs or revenues that a political 
  3.44  subdivision would incur as a result of a law enacted after June 
  4.1   30, 1997, or rule proposed after June 30, 1998: 
  4.2      (1) that mandates a new program, eliminates an existing 
  4.3   mandated program, requires an increased level of service of an 
  4.4   existing program, or permits a decreased level of service in an 
  4.5   existing mandated program; 
  4.6      (2) that implements or interprets federal law and, by its 
  4.7   implementation or interpretation, increases or decreases program 
  4.8   or service levels beyond the level required by the federal law; 
  4.9      (3) that implements or interprets a statute or amendment 
  4.10  adopted or enacted pursuant to the approval of a statewide 
  4.11  ballot measure by the voters and, by its implementation or 
  4.12  interpretation, increases or decreases program or service levels 
  4.13  beyond the levels required by the ballot measure; 
  4.14     (4) that removes an option previously available to 
  4.15  political subdivisions, or adds an option previously unavailable 
  4.16  to political subdivisions, thus requiring higher program or 
  4.17  service levels or permitting lower program or service levels, or 
  4.18  prohibits a specific activity and so forces political 
  4.19  subdivisions to use a more costly alternative to provide a 
  4.20  mandated program or service; 
  4.21     (5) that requires that an existing program or service be 
  4.22  provided in a shorter time period and thus increases the cost of 
  4.23  the program or service, or permits an existing mandated program 
  4.24  or service to be provided in a longer time period, thus 
  4.25  permitting a decrease in the cost of the program or service; 
  4.26     (6) that adds new requirements to an existing optional 
  4.27  program or service and thus increases the cost of the program or 
  4.28  service because the political subdivisions have no reasonable 
  4.29  alternative other than to continue the optional program; 
  4.30     (7) that affects local revenue collections by changes in 
  4.31  property or sales and use tax exemptions; 
  4.32     (8) that requires costs previously incurred at local option 
  4.33  that have subsequently been mandated by the state; or 
  4.34     (9) that requires payment of a new fee or increases the 
  4.35  amount of an existing fee, or permits the elimination or 
  4.36  decrease of an existing fee mandated by the state. 
  5.1      (b) When state law is intended to achieve compliance with 
  5.2   federal law or court orders, state mandates shall be determined 
  5.3   as follows: 
  5.4      (1) if the federal law or court order is discretionary, the 
  5.5   state law is a state mandate; 
  5.6      (2) if the state law exceeds what is required by the 
  5.7   federal law or court order, only the provisions of the state law 
  5.8   that exceed the federal requirements are a state mandate; and 
  5.9      (3) if the state law does not exceed what is required by 
  5.10  the federal statute or regulation or court order, the state law 
  5.11  is not a state mandate. 
  5.12     Sec. 9.  Minnesota Statutes 1997 Supplement, section 3.986, 
  5.13  subdivision 4, is amended to read: 
  5.14     Subd. 4.  [POLITICAL SUBDIVISION.] A "political 
  5.15  subdivision" is a county, home rule charter or statutory city, 
  5.16  town, or other taxing district or municipal corporation. 
  5.17     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
  5.18  3.987, subdivision 1, is amended to read: 
  5.19     Subdivision 1.  [LOCAL IMPACT NOTES.] The commissioner of 
  5.20  finance shall coordinate the development of a local impact note 
  5.21  for any proposed legislation introduced after June 30, 1997, or 
  5.22  any rule proposed after June 30, 1998, upon request of the chair 
  5.23  or the ranking minority member of either legislative tax 
  5.24  committee.  The local impact note must be prepared as provided 
  5.25  in section 3.98, subdivision 2, and made available to the public 
  5.26  upon request.  If the action is among the exceptions listed in 
  5.27  section 3.988, a local impact note need not be requested nor 
  5.28  prepared.  The commissioner shall make a reasonable and timely 
  5.29  estimate of the local fiscal impact on each type of political 
  5.30  subdivision that would result from the proposed legislation.  
  5.31  The commissioner of finance may require any political 
  5.32  subdivision or the commissioner of an administrative agency of 
  5.33  the state to supply in a timely manner any information 
  5.34  determined to be necessary to determine local fiscal impact.  
  5.35  The political subdivision, its representative association, or 
  5.36  commissioner shall convey the requested information to the 
  6.1   commissioner of finance with a signed statement to the effect 
  6.2   that the information is accurate and complete to the best of its 
  6.3   ability.  The political subdivision, its representative 
  6.4   association, or commissioner, when requested, shall update its 
  6.5   determination of local fiscal impact based on actual cost or 
  6.6   revenue figures, improved estimates, or both. 
  6.7      Sec. 11.  Minnesota Statutes 1997 Supplement, section 
  6.8   3.987, subdivision 2, is amended to read: 
  6.9      Subd. 2.  [MANDATE EXPLANATIONS.] Any bill introduced in 
  6.10  the legislature after June 30, 1997, that seeks to impose 
  6.11  program or financial mandates on political subdivisions must 
  6.12  include At the time of a request for a local impact note, the 
  6.13  chair or ranking minority member of either legislative tax 
  6.14  committee shall request that the author of the bill for which 
  6.15  the local impact note is requested prepare an attachment from 
  6.16  the author that gives appropriate responses to the bill 
  6.17  responding to the following guidelines.  It must state and list: 
  6.18     (1) the policy goals that are sought to be attained, the 
  6.19  performance standards that are to be imposed, and an explanation 
  6.20  why the goals and standards will best be served by requiring 
  6.21  compliance by political subdivisions; 
  6.22     (2) performance standards that will allow political 
  6.23  subdivisions flexibility and innovation of method in achieving 
  6.24  those goals; 
  6.25     (3) the reasons for each prescribed standard and the 
  6.26  process by which each standard governs input such as staffing 
  6.27  and other administrative aspects of the program; 
  6.28     (4) the sources of additional revenue, in addition to 
  6.29  existing funding for similar programs, that are directly linked 
  6.30  to imposition of the mandates that will provide adequate and 
  6.31  stable funding for their requirements; 
  6.32     (5) what input has been obtained to ensure that the 
  6.33  implementing agencies have the capacity to carry out the 
  6.34  delegated responsibilities; and 
  6.35     (6) the reasons why less intrusive measures such as 
  6.36  financial incentives or voluntary compliance would not yield the 
  7.1   equity, efficiency, or desired level of statewide uniformity in 
  7.2   the proposed program; and 
  7.3      (7) the efforts put forth, if any, to involve political 
  7.4   subdivisions in the creation or development of the proposed 
  7.5   mandate. 
  7.6      Sec. 12.  Minnesota Statutes 1997 Supplement, section 
  7.7   3.988, subdivision 3, is amended to read: 
  7.8      Subd. 3.  [MISCELLANEOUS EXCEPTIONS.] A local impact 
  7.9   note or an attachment as provided in section 3.987, subdivision 
  7.10  2, need not be prepared for the cost of a mandated action if the 
  7.11  law, including a rulemaking, containing the mandate:  
  7.12     (1) accommodates a specific local request; 
  7.13     (2) results in no new local government duties; 
  7.14     (3) leads to revenue losses from exemptions to taxes; 
  7.15     (4) provided only clarifying or conforming, nonsubstantive 
  7.16  charges on local government; 
  7.17     (5) imposes additional net local costs that are minor (less 
  7.18  than $200 $200,000 for any single local government if the 
  7.19  mandate does not apply statewide or less 
  7.20  than $3,000,000 $5,000,000 if the mandate is statewide) and do 
  7.21  not cause a financial burden on local government; 
  7.22     (6) is a law or executive order enacted before July 1, 
  7.23  1997, or a rule initially implementing a law enacted before July 
  7.24  1, 1997; 
  7.25     (7) implements something other than a law or executive 
  7.26  order, such as a federal, court, or voter-approved mandate; 
  7.27     (8) defines a new crime or redefines an existing crime or 
  7.28  infraction; 
  7.29     (9) results in savings that equal or exceed costs; 
  7.30     (10) requires the holding of elections; 
  7.31     (11) ensures due process or equal protection; 
  7.32     (12) provides for the notification and conduct of public 
  7.33  meetings; 
  7.34     (13) establishes the procedures for administrative and 
  7.35  judicial review of actions taken by political subdivisions; 
  7.36     (14) protects the public from malfeasance, misfeasance, or 
  8.1   nonfeasance by officials of political subdivisions; 
  8.2      (15) relates directly to financial administration, 
  8.3   including the levy, assessment, and collection of taxes; 
  8.4      (16) relates directly to the preparation and submission of 
  8.5   financial audits necessary or performance reporting beneficial 
  8.6   to the administration of state laws; or 
  8.7      (17) requires uniform standards to apply to public and 
  8.8   private institutions without differentiation. 
  8.9      Sec. 13.  Minnesota Statutes 1997 Supplement, section 
  8.10  3.989, subdivision 2, is amended to read: 
  8.11     Subd. 2.  [REPORT.] The commissioner of finance shall 
  8.12  prepare by September 1, 1998 2000, and by September 1 of each 
  8.13  even-numbered year thereafter, a report by political 
  8.14  subdivisions of the costs of class A state local mandates 
  8.15  established after June 30, 1997.  
  8.16     The commissioner shall annually include the statewide total 
  8.17  of the statement of costs of class A local mandates after June 
  8.18  30, 1997, as a notation in the state biennial budget for the 
  8.19  next fiscal year.  
  8.20     Sec. 14.  Minnesota Statutes 1996, section 16A.055, 
  8.21  subdivision 6, is amended to read: 
  8.22     Subd. 6.  [MISSION; EFFICIENCY.] It is part of the 
  8.23  department's mission that within the department's resources the 
  8.24  commissioner shall endeavor to: 
  8.25     (1) prevent the waste or unnecessary spending of public 
  8.26  money; 
  8.27     (2) use innovative fiscal and human resource practices to 
  8.28  manage the state's resources and operate the department as 
  8.29  efficiently as possible; 
  8.30     (3) coordinate the department's activities wherever 
  8.31  appropriate with the activities of other governmental agencies; 
  8.32     (4) use technology where appropriate to increase agency 
  8.33  productivity, improve customer service, increase public access 
  8.34  to information about government, and increase public 
  8.35  participation in the business of government; 
  8.36     (5) utilize constructive and cooperative labor-management 
  9.1   practices to the extent otherwise required by chapters 43A and 
  9.2   179A; 
  9.3      (6) include specific objectives in report to the 
  9.4   legislature on the performance report required under section 
  9.5   15.91 to increase the efficiency of agency operations, when 
  9.6   appropriate and the accomplishment of agency goals in the 
  9.7   agency's biennial budget according to section 16A.10, 
  9.8   subdivision 1; and 
  9.9      (7) recommend to the legislature, in the performance report 
  9.10  of the department required under section 15.91, appropriate 
  9.11  changes in law necessary to carry out the mission and improve 
  9.12  the performance of the department. 
  9.13     Sec. 15.  Minnesota Statutes 1996, section 16A.10, as 
  9.14  amended by Laws 1997, chapter 202, article 2, section 12, is 
  9.15  amended to read: 
  9.16     16A.10 [BUDGET PREPARATION.] 
  9.17     Subdivision 1.  [BUDGET FORMAT.] In each even-numbered 
  9.18  calendar year the commissioner shall prepare budget forms and 
  9.19  instructions for all agencies, including guidelines for 
  9.20  reporting agency performance measures, subject to the approval 
  9.21  of the governor.  The commissioner shall request and receive 
  9.22  advisory recommendations from the chairs of the senate finance 
  9.23  committee and house of representatives ways and means committee 
  9.24  before adopting a format for the biennial budget document.  By 
  9.25  June 15, the commissioner shall send the proposed budget forms 
  9.26  to the appropriations and finance committees.  The committees 
  9.27  have until July 15 to give the commissioner their advisory 
  9.28  recommendations on possible improvements.  To facilitate this 
  9.29  consultation, the commissioner shall establish a working group 
  9.30  consisting of executive branch staff and designees of the chairs 
  9.31  of the senate finance and house of representatives ways and 
  9.32  means committees.  The commissioner must involve this group in 
  9.33  all stages of development of budget forms and instructions.  The 
  9.34  budget format must show actual expenditures and receipts for the 
  9.35  two most recent fiscal years, estimated expenditures and 
  9.36  receipts for the current fiscal year, and estimates for each 
 10.1   fiscal year of the next biennium.  Estimated expenditures must 
 10.2   be classified by funds and character of expenditures and may be 
 10.3   subclassified by programs and activities.  Agency revenue 
 10.4   estimates must show how the estimates were made and what factors 
 10.5   were used.  Receipts must be classified by funds, programs, and 
 10.6   activities.  Expenditure and revenue estimates must be based on 
 10.7   the law in existence at the time the estimates are prepared. 
 10.8      Subd. 1a.  [PURPOSE OF PERFORMANCE DATA.] Performance data 
 10.9   shall be presented in the budget proposal to: 
 10.10     (1) provide information so that the legislature can 
 10.11  determine the extent to which state programs are successful; 
 10.12     (2) encourage agencies to develop clear goals and 
 10.13  objectives for their programs; and 
 10.14     (3) strengthen accountability to Minnesotans by providing a 
 10.15  record of state government's performance in providing effective 
 10.16  and efficient services. 
 10.17     Subd. 1b.  [PERFORMANCE DATA FORMAT.] Agencies shall 
 10.18  present performance data that measures the performance of 
 10.19  programs in meeting program goals and objectives.  Measures 
 10.20  reported may include indicators of outputs, efficiency, 
 10.21  outcomes, and other measures relevant to understanding each 
 10.22  program.  Agencies shall present as much historical information 
 10.23  as needed to understand major trends and shall set targets for 
 10.24  future performance issues where feasible and appropriate.  The 
 10.25  information shall appropriately highlight agency performance 
 10.26  issues that would assist legislative review and decision making. 
 10.27     Subd. 2.  [BY OCTOBER 15 AND NOVEMBER 30.] By October 15 of 
 10.28  each even-numbered year, an agency must file the following with 
 10.29  the commissioner:  
 10.30     (1) budget estimates for the most recent and current fiscal 
 10.31  years; 
 10.32     (2) its upcoming biennial budget estimates; 
 10.33     (3) a comprehensive and integrated statement of agency 
 10.34  missions and outcome and performance measures; and 
 10.35     (4) a concise explanation of any planned changes in the 
 10.36  level of services or new activities. 
 11.1      The commissioner shall prepare and file the budget 
 11.2   estimates for an agency failing to file them.  By November 30, 
 11.3   the commissioner shall send the final budget format, agency 
 11.4   budget plans or requests estimates for the next biennium, and 
 11.5   copies of the filed material to the ways and means and finance 
 11.6   committees, except that the commissioner shall not be required 
 11.7   to transmit information that identifies executive branch budget 
 11.8   decision items.  At this time, a list of each employee's name, 
 11.9   title, and salary must be available to the legislature, either 
 11.10  on paper or through electronic retrieval. 
 11.11     Subd. 3.  [DUTIES TO GOVERNOR-ELECT.] Immediately after the 
 11.12  election of a new governor, the commissioner shall report the 
 11.13  budget estimates and make available to the governor-elect all 
 11.14  department information, staff, and facilities relating to the 
 11.15  budget. 
 11.16     Sec. 16.  Minnesota Statutes 1996, section 16A.102, 
 11.17  subdivision 1, is amended to read: 
 11.18     Subdivision 1.  [GOVERNOR'S RECOMMENDATION.] By the fourth 
 11.19  Monday in January of each odd-numbered year, the governor shall 
 11.20  submit to the legislature a recommended revenue target for the 
 11.21  next two bienniums.  The recommended revenue target must specify:
 11.22     (1) the maximum share of Minnesota personal income to be 
 11.23  collected in taxes and other revenues to pay for state and local 
 11.24  government services; 
 11.25     (2) the division of the share between state and local 
 11.26  government revenues; and 
 11.27     (3) the appropriate mix and rates of income, sales, and 
 11.28  other state and local taxes and other revenues, other than 
 11.29  property taxes, and the amount of property taxes and the effect 
 11.30  of the recommendations on the incidence of the tax burden by 
 11.31  income class. 
 11.32  The recommendations must be based on the November forecast 
 11.33  prepared under section 16A.103. 
 11.34     Sec. 17.  Minnesota Statutes 1996, section 16A.102, 
 11.35  subdivision 2, is amended to read: 
 11.36     Subd. 2.  [LEGISLATIVE BUDGET RESOLUTION.] By March 15 21 
 12.1   of each odd-numbered year, the legislature shall by concurrent 
 12.2   resolution adopt revenue targets for the next two bienniums.  
 12.3   The resolution must specify: 
 12.4      (1) the maximum share of Minnesota personal income to be 
 12.5   collected in taxes and other revenues to pay for state and local 
 12.6   government services; 
 12.7      (2) the division of the share between state and local 
 12.8   government services; and 
 12.9      (3) the appropriate mix and rates of income, sales, and 
 12.10  other state and local taxes and other revenues, other than 
 12.11  property taxes, and the amount of property taxes and the effect 
 12.12  of the resolution on the incidence of the tax burden by income 
 12.13  class. 
 12.14  The resolution must be based on the February forecast prepared 
 12.15  under section 16A.103 and take into consideration the revenue 
 12.16  targets recommended by the governor under subdivision 1.  
 12.17     Sec. 18.  Minnesota Statutes 1997 Supplement, section 
 12.18  16A.103, subdivision 1, is amended to read: 
 12.19     Subdivision 1.  [STATE REVENUE AND EXPENDITURES.] In 
 12.20  February and November each year, the commissioner shall prepare 
 12.21  and deliver to the governor and legislature a forecast of state 
 12.22  revenue and expenditures.  The forecast must be delivered to the 
 12.23  governor and legislature no later than the end of the first week 
 12.24  of the month following its preparation.  The forecast must 
 12.25  assume the continuation of current laws and reasonable estimates 
 12.26  of projected growth in the national and state economies and 
 12.27  affected populations.  Revenue must be estimated for all sources 
 12.28  provided for in current law.  Expenditures must be estimated for 
 12.29  all obligations imposed by law and those projected to occur as a 
 12.30  result of inflation and variables outside the control of the 
 12.31  legislature.  In determining the rate of inflation, the 
 12.32  application of inflation, and the other variables to be included 
 12.33  in the expenditure part of the forecast, the commissioner must 
 12.34  consult with the chair of the senate state government finance 
 12.35  committee, the chair of the house committee on ways and means, 
 12.36  and house and senate fiscal staff.  In addition, the 
 13.1   commissioner shall forecast Minnesota personal income for each 
 13.2   of the years covered by the forecast and include these estimates 
 13.3   in the forecast documents.  A forecast prepared during the first 
 13.4   fiscal year of a biennium must cover that biennium and the next 
 13.5   biennium.  A forecast prepared during the second fiscal year of 
 13.6   a biennium must cover that biennium and the next two bienniums. 
 13.7      Sec. 19.  Minnesota Statutes 1996, section 16A.105, is 
 13.8   amended to read: 
 13.9      16A.105 [DEBT CAPACITY FORECAST.] 
 13.10     By December 1 of each even-numbered In February and 
 13.11  November of each year the governor commissioner shall submit to 
 13.12  the legislature prepare a debt capacity forecast to be delivered 
 13.13  to the governor and legislature according to section 16A.103, 
 13.14  subdivision 1.  The debt capacity forecast must include 
 13.15  statements of the indebtedness of the state for bonds, notes, 
 13.16  and other forms of long-term general obligation 
 13.17  indebtedness that are not accounted for in proprietary or 
 13.18  fiduciary funds, including general obligation bonds, moral 
 13.19  obligation bonds, revenue bonds, loans, grants payable, and 
 13.20  capital leases.  The forecast must show the actual amount of the 
 13.21  debt service for at least the past two completed fiscal years, 
 13.22  and the estimated amount for the current fiscal year and the 
 13.23  next six fiscal years, the debt authorized and unissued, the 
 13.24  condition of the sinking funds, and the borrowing capacity for 
 13.25  the next six fiscal years. 
 13.26     Sec. 20.  Minnesota Statutes 1997 Supplement, section 
 13.27  16A.11, subdivision 1, is amended to read: 
 13.28     Subdivision 1.  [WHEN.] The governor shall submit a 
 13.29  four-part three-part budget to the legislature.  Parts one and 
 13.30  two, the budget message and detailed operating budget, must be 
 13.31  submitted by the fourth Tuesday in January in each odd-numbered 
 13.32  year.  Part three, the detailed recommendations as to capital 
 13.33  expenditure, must be submitted as follows:  agency capital 
 13.34  budget requests by July 1 of each odd-numbered year, and 
 13.35  governor's recommendations by January 15 of each even-numbered 
 13.36  year.  Part four, the detailed recommendations as to information 
 14.1   technology expenditure, must be submitted at the same time the 
 14.2   governor submits the budget message to the legislature. 
 14.3      Sec. 21.  Minnesota Statutes 1996, section 16A.11, 
 14.4   subdivision 3, is amended to read: 
 14.5      Subd. 3.  [PART TWO:  DETAILED BUDGET.] Part two of the 
 14.6   budget, the detailed budget estimates both of expenditures and 
 14.7   revenues, shall contain any statements on the financial plan 
 14.8   which the governor believes desirable or which may be required 
 14.9   by the legislature.  Part of the budget must be prepared using 
 14.10  performance-based budgeting concepts.  In this subdivision, 
 14.11  "performance-based budgeting" means a budget system that 
 14.12  identifies agency outcomes and results and provides 
 14.13  comprehensive information regarding actual and proposed changes 
 14.14  in funding and outcomes.  The detailed estimates shall include 
 14.15  the governor's budget plan of each agency arranged in tabular 
 14.16  form so it may readily be compared with the governor's budget 
 14.17  for each agency.  They shall also include, as part of each 
 14.18  agency's organization chart, a summary of the personnel employed 
 14.19  by the agency, showing the reflected as full-time equivalent 
 14.20  positions for the current biennium, and the number of full-time 
 14.21  equivalent employees of all kinds employed by the agency on June 
 14.22  30 of the last complete fiscal year. 
 14.23     Sec. 22.  Minnesota Statutes 1996, section 16A.11, 
 14.24  subdivision 3a, is amended to read: 
 14.25     Subd. 3a.  [PART THREE:  DETAILED CAPITAL BUDGET.] The 
 14.26  detailed capital budget must include recommendations for capital 
 14.27  projects to be funded during the next six fiscal years.  It must 
 14.28  be submitted with projects rank ordered in two ways:  in order 
 14.29  of importance among all budget projects as 
 14.30  determined recommended by the governor, and in order of 
 14.31  importance among that agency's requests as determined by the 
 14.32  agency originating the request. 
 14.33     Sec. 23.  Minnesota Statutes 1996, section 16A.501, is 
 14.34  amended to read: 
 14.35     16A.501 [REPORT ON MATCHING MONEY.] 
 14.36     The commissioner of finance must report annually to the 
 15.1   legislature on the degree to which entities receiving 
 15.2   appropriations of bond proceeds contingent upon obtaining 
 15.3   matching money have been successful in raising have encumbered 
 15.4   or expended that money.  The report must be submitted to the 
 15.5   chairs of the house of representatives ways and means committee 
 15.6   and the senate finance committee by February 1 of each year. 
 15.7      Sec. 24.  Minnesota Statutes 1997 Supplement, section 
 15.8   16A.641, subdivision 4, is amended to read: 
 15.9      Subd. 4.  [SALE AND ISSUANCE.] State bonds must be sold and 
 15.10  issued upon sealed competitive bids in the manner and on the 
 15.11  terms and conditions determined by the commissioner in 
 15.12  accordance with the laws authorizing them and subject to the 
 15.13  approval of the attorney general, but not subject to chapter 14, 
 15.14  including section 14.386.  For each series, in addition to 
 15.15  provisions required by subdivision 3, the commissioner may 
 15.16  determine:  
 15.17     (1) the time, place, and notice of sale and method of 
 15.18  comparing bids; 
 15.19     (2) the price, not less than par for highway bonds; 
 15.20     (3) the principal amount and date of issue; 
 15.21     (4) the interest rates and payment dates; 
 15.22     (5) the maturity amounts and dates, not more than 20 years 
 15.23  from the date of issue, subject to subdivision 5; 
 15.24     (6) the terms, if any, on which the bonds may or must be 
 15.25  redeemed before maturity, including notice, times, and 
 15.26  redemption prices; and 
 15.27     (7) the form of the bonds and the method of execution, 
 15.28  delivery, payment, registration, conversion, and exchange, in 
 15.29  accordance with section 16A.672.  
 15.30     Sec. 25.  Minnesota Statutes 1996, section 16A.72, is 
 15.31  amended to read: 
 15.32     16A.72 [INCOME CREDITED TO GENERAL FUND; EXCEPTIONS.] 
 15.33     All income, including fees or receipts of any nature, shall 
 15.34  be credited to the general fund, except:  
 15.35     (1) federal aid; 
 15.36     (2) contributions, or reimbursements received for any 
 16.1   account of any division or department for which an appropriation 
 16.2   is made by law; 
 16.3      (3) income to the University of Minnesota; 
 16.4      (4) income to revolving funds now established in 
 16.5   institutions under the control of the commissioners of 
 16.6   corrections or human services; 
 16.7      (5) investment earnings resulting from the master lease 
 16.8   program, except that the amount credited to another fund or 
 16.9   account may not exceed the amount of the additional expense 
 16.10  incurred by that fund or account through participation in the 
 16.11  master lease program; 
 16.12     (6) investment earnings resulting from any gift, donation, 
 16.13  device, endowment, trust, or court ordered or approved escrow 
 16.14  account or trust fund, which should be credited to the fund or 
 16.15  account and appropriated for the purpose for which it was 
 16.16  received; 
 16.17     (7) receipts from the operation of patients' and inmates' 
 16.18  stores and vending machines, which shall be deposited in the 
 16.19  social welfare fund in each institution for the benefit of the 
 16.20  patients and inmates; 
 16.21     (7) (8) money received in payment for services of inmate 
 16.22  labor employed in the industries carried on in the state 
 16.23  correctional facilities which receipts shall be credited to the 
 16.24  current expense fund of those facilities; 
 16.25     (8) (9) as provided in sections 16B.57 and 85.22; 
 16.26     (9) (10) income to the Minnesota historical society; 
 16.27     (10) (11) the percent of income collected by a private 
 16.28  collection agency and retained by the collection agency as its 
 16.29  collection fee; or 
 16.30     (11) (12) as otherwise provided by law. 
 16.31     Sec. 26.  Minnesota Statutes 1996, section 16B.04, 
 16.32  subdivision 4, is amended to read: 
 16.33     Subd. 4.  [MISSION; EFFICIENCY.] It is part of the 
 16.34  department's mission that within the department's resources the 
 16.35  commissioner shall endeavor to: 
 16.36     (1) prevent the waste or unnecessary spending of public 
 17.1   money; 
 17.2      (2) use innovative fiscal and human resource practices to 
 17.3   manage the state's resources and operate the department as 
 17.4   efficiently as possible; 
 17.5      (3) coordinate the department's activities wherever 
 17.6   appropriate with the activities of other governmental agencies; 
 17.7      (4) use technology where appropriate to increase agency 
 17.8   productivity, improve customer service, increase public access 
 17.9   to information about government, and increase public 
 17.10  participation in the business of government; 
 17.11     (5) utilize constructive and cooperative labor-management 
 17.12  practices to the extent otherwise required by chapters 43A and 
 17.13  179A; 
 17.14     (6) include specific objectives in report to the 
 17.15  legislature on the performance report required under section 
 17.16  15.91 to increase the efficiency of agency operations, when 
 17.17  appropriate and the accomplishment of agency goals in the 
 17.18  agency's biennial budget according to section 16A.10, 
 17.19  subdivision 1; and 
 17.20     (7) recommend to the legislature, in the performance report 
 17.21  of the department required under section 15.91, appropriate 
 17.22  changes in law necessary to carry out the mission and improve 
 17.23  the performance of the department. 
 17.24     Sec. 27.  Minnesota Statutes 1996, section 16B.30, is 
 17.25  amended to read: 
 17.26     16B.30 [GENERAL AUTHORITY.] 
 17.27     (a) Subject to other provisions in this chapter, the 
 17.28  commissioner shall supervise and control the making of all 
 17.29  contracts for the construction of buildings and for other 
 17.30  capital improvements to state buildings and structures, other 
 17.31  than buildings and structures under the control of the board of 
 17.32  trustees of the Minnesota state colleges and 
 17.33  universities.  Except as provided in paragraph (b), a state 
 17.34  agency may not undertake improvements of a capital nature 
 17.35  without specific legislative authority. 
 17.36     (b) Notwithstanding paragraph (a), specific legislative 
 18.1   authority is not required for projects financed with operating 
 18.2   appropriations or agency receipts that: 
 18.3      (1) are undertaken for asset preservation or code 
 18.4   compliance purposes; 
 18.5      (2) do not materially increase the net square footage of a 
 18.6   facility; and 
 18.7      (3) do not increase the cost of facility programs. 
 18.8      Sec. 28.  Minnesota Statutes 1996, section 17.03, 
 18.9   subdivision 11, is amended to read: 
 18.10     Subd. 11.  [MISSION; EFFICIENCY.] It is part of the 
 18.11  department's mission that within the department's resources the 
 18.12  commissioner shall endeavor to: 
 18.13     (1) prevent the waste or unnecessary spending of public 
 18.14  money; 
 18.15     (2) use innovative fiscal and human resource practices to 
 18.16  manage the state's resources and operate the department as 
 18.17  efficiently as possible; 
 18.18     (3) coordinate the department's activities wherever 
 18.19  appropriate with the activities of other governmental agencies; 
 18.20     (4) use technology where appropriate to increase agency 
 18.21  productivity, improve customer service, increase public access 
 18.22  to information about government, and increase public 
 18.23  participation in the business of government; 
 18.24     (5) utilize constructive and cooperative labor-management 
 18.25  practices to the extent otherwise required by chapters 43A and 
 18.26  179A; 
 18.27     (6) include specific objectives in report to the 
 18.28  legislature on the performance report required under section 
 18.29  15.91 to increase the efficiency of agency operations, when 
 18.30  appropriate and the accomplishment of agency goals in the 
 18.31  agency's biennial budget according to section 16A.10, 
 18.32  subdivision 1; and 
 18.33     (7) recommend to the legislature, in the performance report 
 18.34  of the department required under section 15.91, appropriate 
 18.35  changes in law necessary to carry out the mission and improve 
 18.36  the performance of the department. 
 19.1      Sec. 29.  Minnesota Statutes 1996, section 43A.04, 
 19.2   subdivision 1a, is amended to read: 
 19.3      Subd. 1a.  [MISSION; EFFICIENCY.] It is part of the 
 19.4   department's mission that within the department's resources the 
 19.5   commissioner shall endeavor to: 
 19.6      (1) prevent the waste or unnecessary spending of public 
 19.7   money; 
 19.8      (2) use innovative fiscal and human resource practices to 
 19.9   manage the state's resources and operate the department as 
 19.10  efficiently as possible; 
 19.11     (3) coordinate the department's activities wherever 
 19.12  appropriate with the activities of other governmental agencies; 
 19.13     (4) use technology where appropriate to increase agency 
 19.14  productivity, improve customer service, increase public access 
 19.15  to information about government, and increase public 
 19.16  participation in the business of government; 
 19.17     (5) utilize constructive and cooperative labor-management 
 19.18  practices to the extent otherwise required by chapters 43A and 
 19.19  179A; 
 19.20     (6) include specific objectives in report to the 
 19.21  legislature on the performance report required under section 
 19.22  15.91 to increase the efficiency of agency operations, when 
 19.23  appropriate and the accomplishment of agency goals in the 
 19.24  agency's biennial budget according to section 16A.10, 
 19.25  subdivision 1; and 
 19.26     (7) recommend to the legislature, in the performance report 
 19.27  of the department required under section 15.91, appropriate 
 19.28  changes in law necessary to carry out the mission and improve 
 19.29  the performance of the department. 
 19.30     Sec. 30.  Minnesota Statutes 1996, section 43A.317, 
 19.31  subdivision 8, is amended to read: 
 19.32     Subd. 8.  [PREMIUMS.] (a)  [PAYMENTS.] Employers enrolled 
 19.33  in the program shall pay premiums according to terms established 
 19.34  by the commissioner.  If an employer fails to make the required 
 19.35  payments, the commissioner may cancel coverage and pursue other 
 19.36  civil remedies. 
 20.1      (b)  [RATING METHOD.] The commissioner shall determine the 
 20.2   premium rates and rating method for the program.  The rating 
 20.3   method for eligible small employers must meet or exceed the 
 20.4   requirements of chapter 62L.  The rating methods must recover in 
 20.5   premiums all of the ongoing costs for state administration and 
 20.6   for maintenance of a premium stability and claim fluctuation 
 20.7   reserve.  Premiums must be established so as to recover and 
 20.8   repay within five years after July 1, 1993, any direct 
 20.9   appropriations received to provide start-up administrative 
 20.10  costs.  Premiums must be established so as to recover and repay 
 20.11  within five years after July 1, 1993, any direct appropriations 
 20.12  received to establish initial reserves.  On June 30, 1999, after 
 20.13  paying all necessary and reasonable expenses, the commissioner 
 20.14  must apply up to $2,075,000 of any remaining balance in the 
 20.15  Minnesota employees' insurance trust fund to repayment of any 
 20.16  amounts drawn or expended for this program from the health care 
 20.17  access fund. 
 20.18     (c)  [TAXES AND ASSESSMENTS.] To the extent that the 
 20.19  program operates as a self-insured group, the premiums paid to 
 20.20  the program are not subject to the premium taxes imposed by 
 20.21  sections 60A.15 and 60A.198, but the program is subject to a 
 20.22  Minnesota comprehensive health association assessment under 
 20.23  section 62E.11. 
 20.24     Sec. 31.  Minnesota Statutes 1996, section 45.012, is 
 20.25  amended to read: 
 20.26     45.012 [COMMISSIONER.] 
 20.27     (a) The department of commerce is under the supervision and 
 20.28  control of the commissioner of commerce.  The commissioner is 
 20.29  appointed by the governor in the manner provided by section 
 20.30  15.06.  
 20.31     (b) Data that is received by the commissioner or the 
 20.32  commissioner's designee by virtue of membership or participation 
 20.33  in an association, group, or organization that is not otherwise 
 20.34  subject to chapter 13 is confidential or protected nonpublic 
 20.35  data but may be shared with the department employees as the 
 20.36  commissioner considers appropriate.  The commissioner may 
 21.1   release the data to any person, agency, or the public if the 
 21.2   commissioner determines that the access will aid the law 
 21.3   enforcement process, promote public health or safety, or dispel 
 21.4   widespread rumor or unrest.  
 21.5      (c) It is part of the department's mission that within the 
 21.6   department's resources the commissioner shall endeavor to: 
 21.7      (1) prevent the waste or unnecessary spending of public 
 21.8   money; 
 21.9      (2) use innovative fiscal and human resource practices to 
 21.10  manage the state's resources and operate the department as 
 21.11  efficiently as possible; 
 21.12     (3) coordinate the department's activities wherever 
 21.13  appropriate with the activities of other governmental agencies; 
 21.14     (4) use technology where appropriate to increase agency 
 21.15  productivity, improve customer service, increase public access 
 21.16  to information about government, and increase public 
 21.17  participation in the business of government; 
 21.18     (5) utilize constructive and cooperative labor-management 
 21.19  practices to the extent otherwise required by chapters 43A and 
 21.20  179A; 
 21.21     (6) include specific objectives in report to the 
 21.22  legislature on the performance report required under section 
 21.23  15.91 to increase the efficiency of agency operations, when 
 21.24  appropriate and the accomplishment of agency goals in the 
 21.25  agency's biennial budget according to section 16A.10, 
 21.26  subdivision 1; and 
 21.27     (7) recommend to the legislature, in the performance report 
 21.28  of the department required under section 15.91, appropriate 
 21.29  changes in law necessary to carry out the mission and improve 
 21.30  the performance of the department. 
 21.31     Sec. 32.  Minnesota Statutes 1996, section 84.027, 
 21.32  subdivision 14, is amended to read: 
 21.33     Subd. 14.  [MISSION; EFFICIENCY.] It is part of the 
 21.34  department's mission that within the department's resources the 
 21.35  commissioner shall endeavor to: 
 21.36     (1) prevent the waste or unnecessary spending of public 
 22.1   money; 
 22.2      (2) use innovative fiscal and human resource practices to 
 22.3   manage the state's resources and operate the department as 
 22.4   efficiently as possible; 
 22.5      (3) coordinate the department's activities wherever 
 22.6   appropriate with the activities of other governmental agencies; 
 22.7      (4) use technology where appropriate to increase agency 
 22.8   productivity, improve customer service, increase public access 
 22.9   to information about government, and increase public 
 22.10  participation in the business of government; 
 22.11     (5) utilize constructive and cooperative labor-management 
 22.12  practices to the extent otherwise required by chapters 43A and 
 22.13  179A; 
 22.14     (6) include specific objectives in report to the 
 22.15  legislature on the performance report required under section 
 22.16  15.91 to increase the efficiency of agency operations, when 
 22.17  appropriate and the accomplishment of agency goals in the 
 22.18  agency's biennial budget according to section 16A.10, 
 22.19  subdivision 1; and 
 22.20     (7) recommend to the legislature, in the performance report 
 22.21  of the department required under section 15.91, appropriate 
 22.22  changes in law necessary to carry out the mission and improve 
 22.23  the performance of the department. 
 22.24     Sec. 33.  Minnesota Statutes 1996, section 116.03, 
 22.25  subdivision 2a, is amended to read: 
 22.26     Subd. 2a.  [MISSION; EFFICIENCY.] It is part of the 
 22.27  agency's mission that within the agency's resources the 
 22.28  commissioner and the members of the agency shall endeavor to: 
 22.29     (1) prevent the waste or unnecessary spending of public 
 22.30  money; 
 22.31     (2) use innovative fiscal and human resource practices to 
 22.32  manage the state's resources and operate the agency as 
 22.33  efficiently as possible; 
 22.34     (3) coordinate the agency's activities wherever appropriate 
 22.35  with the activities of other governmental agencies; 
 22.36     (4) use technology where appropriate to increase agency 
 23.1   productivity, improve customer service, increase public access 
 23.2   to information about government, and increase public 
 23.3   participation in the business of government; 
 23.4      (5) utilize constructive and cooperative labor-management 
 23.5   practices to the extent otherwise required by chapters 43A and 
 23.6   179A; 
 23.7      (6) include specific objectives in report to the 
 23.8   legislature on the performance report required under section 
 23.9   15.91 to increase the efficiency of agency operations, when 
 23.10  appropriate and the accomplishment of agency goals in the 
 23.11  agency's biennial budget according to section 16A.10, 
 23.12  subdivision 1; and 
 23.13     (7) recommend to the legislature, in the performance report 
 23.14  of the agency required under section 15.91, appropriate changes 
 23.15  in law necessary to carry out the mission and improve the 
 23.16  performance of the agency. 
 23.17     Sec. 34.  Minnesota Statutes 1996, section 116J.011, is 
 23.18  amended to read: 
 23.19     116J.011 [MISSION.] 
 23.20     The mission of the department of trade and economic 
 23.21  development is to employ all of the available state government 
 23.22  resources to facilitate an economic environment that produces 
 23.23  net new job growth in excess of the national average and to 
 23.24  increase nonresident and resident tourism revenues.  It is part 
 23.25  of the department's mission that within the department's 
 23.26  resources the commissioner shall endeavor to: 
 23.27     (1) prevent the waste or unnecessary spending of public 
 23.28  money; 
 23.29     (2) use innovative fiscal and human resource practices to 
 23.30  manage the state's resources and operate the department as 
 23.31  efficiently as possible; 
 23.32     (3) coordinate the department's activities wherever 
 23.33  appropriate with the activities of other governmental agencies; 
 23.34     (4) use technology where appropriate to increase agency 
 23.35  productivity, improve customer service, increase public access 
 23.36  to information about government, and increase public 
 24.1   participation in the business of government; 
 24.2      (5) utilize constructive and cooperative labor-management 
 24.3   practices to the extent otherwise required by chapters 43A and 
 24.4   179A; 
 24.5      (6) include specific objectives in report to the 
 24.6   legislature on the performance report required under section 
 24.7   15.91 to increase the efficiency of agency operations, when 
 24.8   appropriate and the accomplishment of agency goals in the 
 24.9   agency's biennial budget according to section 16A.10, 
 24.10  subdivision 1; and 
 24.11     (7) recommend to the legislature, in the performance report 
 24.12  of the department required under section 15.91, appropriate 
 24.13  changes in law necessary to carry out the mission and improve 
 24.14  the performance of the department. 
 24.15     Sec. 35.  Minnesota Statutes 1997 Supplement, section 
 24.16  120.0111, is amended to read: 
 24.17     120.0111 [MISSION STATEMENT.] 
 24.18     The mission of public education in Minnesota, a system for 
 24.19  lifelong learning, is to ensure individual academic achievement, 
 24.20  an informed citizenry, and a highly productive work force.  This 
 24.21  system focuses on the learner, promotes and values diversity, 
 24.22  provides participatory decision making, ensures accountability, 
 24.23  models democratic principles, creates and sustains a climate for 
 24.24  change, provides personalized learning environments, encourages 
 24.25  learners to reach their maximum potential, and integrates and 
 24.26  coordinates human services for learners.  The public schools of 
 24.27  this state shall serve the needs of the students by cooperating 
 24.28  with the students' parents and legal guardians to develop the 
 24.29  students' intellectual capabilities and lifework skills in a 
 24.30  safe and positive environment.  It is part of the department's 
 24.31  mission that within the department's resources the commissioner 
 24.32  shall endeavor to: 
 24.33     (1) prevent the waste or unnecessary spending of public 
 24.34  money; 
 24.35     (2) use innovative fiscal and human resource practices to 
 24.36  manage the state's resources and operate the department as 
 25.1   efficiently as possible; 
 25.2      (3) coordinate the department's activities wherever 
 25.3   appropriate with the activities of other governmental agencies; 
 25.4      (4) use technology where appropriate to increase agency 
 25.5   productivity, improve customer service, increase public access 
 25.6   to information about government, and increase public 
 25.7   participation in the business of government; 
 25.8      (5) utilize constructive and cooperative labor-management 
 25.9   practices to the extent otherwise required by chapters 43A and 
 25.10  179A; 
 25.11     (6) include specific objectives in report to the 
 25.12  legislature on the performance report required under section 
 25.13  15.91 to increase the efficiency of agency operations, when 
 25.14  appropriate and the accomplishment of agency goals in the 
 25.15  agency's biennial budget according to section 16A.10, 
 25.16  subdivision 1; and 
 25.17     (7) recommend to the legislature, in the performance report 
 25.18  of the department required under section 15.91, appropriate 
 25.19  changes in law necessary to carry out the mission and improve 
 25.20  the performance of the department. 
 25.21     Sec. 36.  Minnesota Statutes 1996, section 144.05, 
 25.22  subdivision 2, is amended to read: 
 25.23     Subd. 2.  [MISSION; EFFICIENCY.] It is part of the 
 25.24  department's mission that within the department's resources the 
 25.25  commissioner shall endeavor to: 
 25.26     (1) prevent the waste or unnecessary spending of public 
 25.27  money; 
 25.28     (2) use innovative fiscal and human resource practices to 
 25.29  manage the state's resources and operate the department as 
 25.30  efficiently as possible; 
 25.31     (3) coordinate the department's activities wherever 
 25.32  appropriate with the activities of other governmental agencies; 
 25.33     (4) use technology where appropriate to increase agency 
 25.34  productivity, improve customer service, increase public access 
 25.35  to information about government, and increase public 
 25.36  participation in the business of government; 
 26.1      (5) utilize constructive and cooperative labor-management 
 26.2   practices to the extent otherwise required by chapters 43A and 
 26.3   179A; 
 26.4      (6) include specific objectives in report to the 
 26.5   legislature on the performance report required under section 
 26.6   15.91 to increase the efficiency of agency operations, when 
 26.7   appropriate and the accomplishment of agency goals in the 
 26.8   agency's biennial budget according to section 16A.10, 
 26.9   subdivision 1; and 
 26.10     (7) recommend to the legislature, in the performance report 
 26.11  of the department required under section 15.91, appropriate 
 26.12  changes in law necessary to carry out the mission and improve 
 26.13  the performance of the department. 
 26.14     Sec. 37.  Minnesota Statutes 1996, section 174.02, 
 26.15  subdivision 1a, is amended to read: 
 26.16     Subd. 1a.  [MISSION; EFFICIENCY.] It is part of the 
 26.17  department's mission that within the department's resources the 
 26.18  commissioner shall endeavor to: 
 26.19     (1) prevent the waste or unnecessary spending of public 
 26.20  money; 
 26.21     (2) use innovative fiscal and human resource practices to 
 26.22  manage the state's resources and operate the department as 
 26.23  efficiently as possible; 
 26.24     (3) coordinate the department's activities wherever 
 26.25  appropriate with the activities of other governmental agencies; 
 26.26     (4) use technology where appropriate to increase agency 
 26.27  productivity, improve customer service, increase public access 
 26.28  to information about government, and increase public 
 26.29  participation in the business of government; 
 26.30     (5) utilize constructive and cooperative labor-management 
 26.31  practices to the extent otherwise required by chapters 43A and 
 26.32  179A; 
 26.33     (6) include specific objectives in report to the 
 26.34  legislature on the performance report required under section 
 26.35  15.91 to increase the efficiency of agency operations, when 
 26.36  appropriate and the accomplishment of agency goals in the 
 27.1   agency's biennial budget according to section 16A.10, 
 27.2   subdivision 1; and 
 27.3      (7) recommend to the legislature, in the performance report 
 27.4   of the department required under section 15.91, appropriate 
 27.5   changes in law necessary to carry out the mission and improve 
 27.6   the performance of the department. 
 27.7      Sec. 38.  Minnesota Statutes 1996, section 175.001, 
 27.8   subdivision 6, is amended to read: 
 27.9      Subd. 6.  [MISSION; EFFICIENCY.] It is part of the 
 27.10  department's mission that within the department's resources the 
 27.11  commissioner shall endeavor to: 
 27.12     (1) prevent the waste or unnecessary spending of public 
 27.13  money; 
 27.14     (2) use innovative fiscal and human resource practices to 
 27.15  manage the state's resources and operate the department as 
 27.16  efficiently as possible; 
 27.17     (3) coordinate the department's activities wherever 
 27.18  appropriate with the activities of other governmental agencies; 
 27.19     (4) use technology where appropriate to increase agency 
 27.20  productivity, improve customer service, increase public access 
 27.21  to information about government, and increase public 
 27.22  participation in the business of government; 
 27.23     (5) utilize constructive and cooperative labor-management 
 27.24  practices to the extent otherwise required by chapters 43A and 
 27.25  179A; 
 27.26     (6) include specific objectives in report to the 
 27.27  legislature on the performance report required under section 
 27.28  15.91 to increase the efficiency of agency operations, when 
 27.29  appropriate and the accomplishment of agency goals in the 
 27.30  agency's biennial budget according to section 16A.10, 
 27.31  subdivision 1; and 
 27.32     (7) recommend to the legislature, in the performance report 
 27.33  of the department required under section 15.91, appropriate 
 27.34  changes in law necessary to carry out the mission and improve 
 27.35  the performance of the department. 
 27.36     Sec. 39.  Minnesota Statutes 1996, section 190.09, 
 28.1   subdivision 2, is amended to read: 
 28.2      Subd. 2.  [MISSION; EFFICIENCY.] It is part of the 
 28.3   department's mission that within the department's resources the 
 28.4   adjutant general shall endeavor to: 
 28.5      (1) prevent the waste or unnecessary spending of public 
 28.6   money; 
 28.7      (2) use innovative fiscal and human resource practices to 
 28.8   manage the state's resources and operate the department as 
 28.9   efficiently as possible; 
 28.10     (3) coordinate the department's activities wherever 
 28.11  appropriate with the activities of other governmental agencies; 
 28.12     (4) use technology where appropriate to increase agency 
 28.13  productivity, improve customer service, increase public access 
 28.14  to information about government, and increase public 
 28.15  participation in the business of government; 
 28.16     (5) utilize constructive and cooperative labor-management 
 28.17  practices to the extent otherwise required by chapters 43A and 
 28.18  179A; 
 28.19     (6) include specific objectives in report to the 
 28.20  legislature on the performance report required under section 
 28.21  15.91 to increase the efficiency of agency operations, when 
 28.22  appropriate and the accomplishment of agency goals in the 
 28.23  agency's biennial budget according to section 16A.10, 
 28.24  subdivision 1; and 
 28.25     (7) recommend to the legislature, in the performance report 
 28.26  of the department required under section 15.91, appropriate 
 28.27  changes in law necessary to carry out the mission and improve 
 28.28  the performance of the department. 
 28.29     Sec. 40.  Minnesota Statutes 1996, section 196.05, 
 28.30  subdivision 2, is amended to read: 
 28.31     Subd. 2.  [MISSION; EFFICIENCY.] It is part of the 
 28.32  department's mission that within the department's resources the 
 28.33  commissioner shall endeavor to: 
 28.34     (1) prevent the waste or unnecessary spending of public 
 28.35  money; 
 28.36     (2) use innovative fiscal and human resource practices to 
 29.1   manage the state's resources and operate the department as 
 29.2   efficiently as possible; 
 29.3      (3) coordinate the department's activities wherever 
 29.4   appropriate with the activities of other governmental agencies; 
 29.5      (4) use technology where appropriate to increase agency 
 29.6   productivity, improve customer service, increase public access 
 29.7   to information about government, and increase public 
 29.8   participation in the business of government; 
 29.9      (5) utilize constructive and cooperative labor-management 
 29.10  practices to the extent otherwise required by chapters 43A and 
 29.11  179A; 
 29.12     (6) include specific objectives in report to the 
 29.13  legislature on the performance report required under section 
 29.14  15.91 to increase the efficiency of agency operations, when 
 29.15  appropriate and the accomplishment of agency goals in the 
 29.16  agency's biennial budget according to section 16A.10, 
 29.17  subdivision 1; and 
 29.18     (7) recommend to the legislature, in the performance report 
 29.19  of the department required under section 15.91, appropriate 
 29.20  changes in law necessary to carry out the mission and improve 
 29.21  the performance of the department. 
 29.22     Sec. 41.  Minnesota Statutes 1996, section 216A.07, 
 29.23  subdivision 6, is amended to read: 
 29.24     Subd. 6.  [MISSION; EFFICIENCY.] It is part of the 
 29.25  department's mission that within the department's resources the 
 29.26  commissioner shall endeavor to: 
 29.27     (1) prevent the waste or unnecessary spending of public 
 29.28  money; 
 29.29     (2) use innovative fiscal and human resource practices to 
 29.30  manage the state's resources and operate the department as 
 29.31  efficiently as possible; 
 29.32     (3) coordinate the department's activities wherever 
 29.33  appropriate with the activities of other governmental agencies; 
 29.34     (4) use technology where appropriate to increase agency 
 29.35  productivity, improve customer service, increase public access 
 29.36  to information about government, and increase public 
 30.1   participation in the business of government; 
 30.2      (5) utilize constructive and cooperative labor-management 
 30.3   practices to the extent otherwise required by chapters 43A and 
 30.4   179A; 
 30.5      (6) include specific objectives in report to the 
 30.6   legislature on the performance report required under section 
 30.7   15.91 to increase the efficiency of agency operations, when 
 30.8   appropriate and the accomplishment of agency goals in the 
 30.9   agency's biennial budget according to section 16A.10, 
 30.10  subdivision 1; and 
 30.11     (7) recommend to the legislature, in the performance report 
 30.12  of the department required under section 15.91, appropriate 
 30.13  changes in law necessary to carry out the mission and improve 
 30.14  the performance of the department. 
 30.15     Sec. 42.  Minnesota Statutes 1997 Supplement, section 
 30.16  241.01, subdivision 3b, is amended to read: 
 30.17     Subd. 3b.  [MISSION; EFFICIENCY.] It is part of the 
 30.18  department's mission that within the department's resources the 
 30.19  commissioner shall endeavor to: 
 30.20     (1) prevent the waste or unnecessary spending of public 
 30.21  money; 
 30.22     (2) use innovative fiscal and human resource practices to 
 30.23  manage the state's resources and operate the department as 
 30.24  efficiently as possible; 
 30.25     (3) coordinate the department's activities wherever 
 30.26  appropriate with the activities of other governmental agencies; 
 30.27     (4) use technology where appropriate to increase agency 
 30.28  productivity, improve service to the public, increase public 
 30.29  access to information about government, and increase public 
 30.30  participation in the business of government; 
 30.31     (5) utilize constructive and cooperative labor-management 
 30.32  practices to the extent otherwise required by chapters 43A and 
 30.33  179A; 
 30.34     (6) include specific objectives in report to the 
 30.35  legislature on the performance report required under sections 
 30.36  15.91 and 241.015 to increase the efficiency of agency 
 31.1   operations, when appropriate and the accomplishment of agency 
 31.2   goals in the agency's biennial budget according to section 
 31.3   16A.10, subdivision 1; and 
 31.4      (7) recommend to the legislature, in the performance report 
 31.5   of the department required under sections 15.91 and 241.015, 
 31.6   appropriate changes in law necessary to carry out the 
 31.7   mission and improve the performance of the department. 
 31.8      Sec. 43.  Minnesota Statutes 1997 Supplement, section 
 31.9   245.03, subdivision 2, is amended to read: 
 31.10     Subd. 2.  [MISSION; EFFICIENCY.] It is part of the 
 31.11  department's mission that within the department's resources the 
 31.12  commissioner shall endeavor to: 
 31.13     (1) prevent the waste or unnecessary spending of public 
 31.14  money; 
 31.15     (2) use innovative fiscal and human resource practices to 
 31.16  manage the state's resources and operate the department as 
 31.17  efficiently as possible, including the authority to consolidate 
 31.18  different nonentitlement grant programs, having similar 
 31.19  functions or serving similar populations, as may be determined 
 31.20  by the commissioner, while protecting the original purposes of 
 31.21  the programs.  Nonentitlement grant funds consolidated by the 
 31.22  commissioner shall be reflected in the department's biennial 
 31.23  budget.  With approval of the commissioner, vendors who are 
 31.24  eligible for funding from any of the commissioner's granting 
 31.25  authority under section 256.01, subdivision 2, paragraph (1), 
 31.26  clause (f), may submit a single application for a grant 
 31.27  agreement including multiple awards; 
 31.28     (3) coordinate the department's activities wherever 
 31.29  appropriate with the activities of other governmental agencies; 
 31.30     (4) use technology where appropriate to increase agency 
 31.31  productivity, improve customer service, increase public access 
 31.32  to information about government, and increase public 
 31.33  participation in the business of government; 
 31.34     (5) utilize constructive and cooperative labor-management 
 31.35  practices to the extent otherwise required by chapters 43A and 
 31.36  179A; 
 32.1      (6) include specific objectives in report to the 
 32.2   legislature on the performance report required under section 
 32.3   15.91 to increase the efficiency of agency operations, when 
 32.4   appropriate and the accomplishment of agency goals in the 
 32.5   agency's biennial budget according to section 16A.10, 
 32.6   subdivision 1; and 
 32.7      (7) recommend to the legislature, in the performance report 
 32.8   of the department required under section 15.91, appropriate 
 32.9   changes in law necessary to carry out the mission and improve 
 32.10  the performance of the department. 
 32.11     Sec. 44.  Minnesota Statutes 1996, section 268.0122, 
 32.12  subdivision 6, is amended to read: 
 32.13     Subd. 6.  [MISSION; EFFICIENCY.] It is part of the 
 32.14  department's mission that within the department's resources the 
 32.15  commissioner shall endeavor to: 
 32.16     (1) prevent the waste or unnecessary spending of public 
 32.17  money; 
 32.18     (2) use innovative fiscal and human resource practices to 
 32.19  manage the state's resources and operate the department as 
 32.20  efficiently as possible; 
 32.21     (3) coordinate the department's activities wherever 
 32.22  appropriate with the activities of other governmental agencies; 
 32.23     (4) use technology where appropriate to increase agency 
 32.24  productivity, improve customer service, increase public access 
 32.25  to information about government, and increase public 
 32.26  participation in the business of government; 
 32.27     (5) utilize constructive and cooperative labor-management 
 32.28  practices to the extent otherwise required by chapters 43A and 
 32.29  179A; 
 32.30     (6) include specific objectives in report to the 
 32.31  legislature on the performance report required under section 
 32.32  15.91 to increase the efficiency of agency operations, when 
 32.33  appropriate and the accomplishment of agency goals in the 
 32.34  agency's biennial budget according to section 16A.10, 
 32.35  subdivision 1; and 
 32.36     (7) recommend to the legislature, in the performance report 
 33.1   of the department required under section 15.91, appropriate 
 33.2   changes in law necessary to carry out the mission and improve 
 33.3   the performance of the department. 
 33.4      Sec. 45.  Minnesota Statutes 1996, section 270.02, 
 33.5   subdivision 3a, is amended to read: 
 33.6      Subd. 3a.  [MISSION; EFFICIENCY.] It is part of the 
 33.7   department's mission that within the department's resources the 
 33.8   commissioner shall endeavor to: 
 33.9      (1) prevent the waste or unnecessary spending of public 
 33.10  money; 
 33.11     (2) use innovative fiscal and human resource practices to 
 33.12  manage the state's resources and operate the department as 
 33.13  efficiently as possible; 
 33.14     (3) coordinate the department's activities wherever 
 33.15  appropriate with the activities of other governmental agencies; 
 33.16     (4) use technology where appropriate to increase agency 
 33.17  productivity, improve customer service, increase public access 
 33.18  to information about government, and increase public 
 33.19  participation in the business of government; 
 33.20     (5) utilize constructive and cooperative labor-management 
 33.21  practices to the extent otherwise required by chapters 43A and 
 33.22  179A; 
 33.23     (6) include specific objectives in report to the 
 33.24  legislature on the performance report required under section 
 33.25  15.91 to increase the efficiency of agency operations, when 
 33.26  appropriate and the accomplishment of agency goals in the 
 33.27  agency's biennial budget according to section 16A.10, 
 33.28  subdivision 1; and 
 33.29     (7) recommend to the legislature, in the performance report 
 33.30  of the department required under section 15.91, appropriate 
 33.31  changes in law necessary to carry out the mission and improve 
 33.32  the performance of the department. 
 33.33     Sec. 46.  Minnesota Statutes 1997 Supplement, section 
 33.34  273.1398, subdivision 8, is amended to read: 
 33.35     Subd. 8.  [APPROPRIATION.] (a) An amount sufficient to pay 
 33.36  the aids and credits provided under this section for school 
 34.1   districts, intermediate school districts, or any group of school 
 34.2   districts levying as a single taxing entity, is annually 
 34.3   appropriated from the general fund to the commissioner of 
 34.4   children, families, and learning.  An amount sufficient to pay 
 34.5   the aids and credits provided under this section for counties, 
 34.6   cities, towns, and special taxing districts is annually 
 34.7   appropriated from the general fund to the commissioner of 
 34.8   revenue.  A jurisdiction's aid amount may be increased or 
 34.9   decreased based on any prior year adjustments for homestead 
 34.10  credit or other property tax credit or aid programs. 
 34.11     (b) The commissioner of finance shall bill the commissioner 
 34.12  of revenue for the cost of preparation of local impact notes as 
 34.13  required by section 3.987 only to the extent to which those 
 34.14  costs exceed those costs incurred in fiscal year 1997 and for 
 34.15  any other new costs attributable to the local impact note 
 34.16  function required by section 3.987, not to exceed $100,000 in 
 34.17  fiscal year 1998 and $200,000 in fiscal year 1999 and thereafter 
 34.18  annually. 
 34.19     The commissioner of revenue shall deduct the amount billed 
 34.20  under this paragraph from aid payments to be made to cities and 
 34.21  counties under subdivision 2 on a pro rata basis.  The amount 
 34.22  deducted under this paragraph is appropriated to the 
 34.23  commissioner of finance for the preparation of local impact 
 34.24  notes.  
 34.25     Sec. 47.  Minnesota Statutes 1996, section 299A.01, 
 34.26  subdivision 1a, is amended to read: 
 34.27     Subd. 1a.  [MISSION; EFFICIENCY.] It is part of the 
 34.28  department's mission that within the department's resources the 
 34.29  commissioner shall endeavor to: 
 34.30     (1) prevent the waste or unnecessary spending of public 
 34.31  money; 
 34.32     (2) use innovative fiscal and human resource practices to 
 34.33  manage the state's resources and operate the department as 
 34.34  efficiently as possible; 
 34.35     (3) coordinate the department's activities wherever 
 34.36  appropriate with the activities of other governmental agencies; 
 35.1      (4) use technology where appropriate to increase agency 
 35.2   productivity, improve customer service, increase public access 
 35.3   to information about government, and increase public 
 35.4   participation in the business of government; 
 35.5      (5) utilize constructive and cooperative labor-management 
 35.6   practices to the extent otherwise required by chapters 43A and 
 35.7   179A; 
 35.8      (6) include specific objectives in report to the 
 35.9   legislature on the performance report required under section 
 35.10  15.91 to increase the efficiency of agency operations, when 
 35.11  appropriate and the accomplishment of agency goals in the 
 35.12  agency's biennial budget according to section 16A.10, 
 35.13  subdivision 1; and 
 35.14     (7) recommend to the legislature, in the performance report 
 35.15  of the department required under section 15.91, appropriate 
 35.16  changes in law necessary to carry out the mission and improve 
 35.17  the performance of the department. 
 35.18     Sec. 48.  Minnesota Statutes 1996, section 349.12, is 
 35.19  amended by adding a subdivision to read: 
 35.20     Subd. 11a.  [EMPLOYEE ELIGIBLE TO MAKE SALES ON BEHALF OF A 
 35.21  DISTRIBUTOR.] "Employee eligible to make sales on behalf of a 
 35.22  distributor" means a person who in any manner receives orders 
 35.23  for gambling equipment or who solicits a licensed, exempt, or 
 35.24  excluded organization to purchase lawful gambling equipment from 
 35.25  a licensed distributor. 
 35.26     Sec. 49.  Minnesota Statutes 1996, section 349.151, 
 35.27  subdivision 4, is amended to read: 
 35.28     Subd. 4.  [POWERS AND DUTIES.] (a) The board has the 
 35.29  following powers and duties:  
 35.30     (1) to regulate lawful gambling to ensure it is conducted 
 35.31  in the public interest; 
 35.32     (2) to issue licenses to organizations, 
 35.33  distributors, employees eligible to make sales on behalf of a 
 35.34  distributor, bingo halls, manufacturers, and gambling managers; 
 35.35     (3) to collect and deposit license, permit, and 
 35.36  registration fees due under this chapter; 
 36.1      (4) to receive reports required by this chapter and inspect 
 36.2   all premises, records, books, and other documents of 
 36.3   organizations, distributors, employees eligible to make sales on 
 36.4   behalf of a distributor, manufacturers, and bingo halls to 
 36.5   insure compliance with all applicable laws and rules; 
 36.6      (5) to make rules authorized by this chapter; 
 36.7      (6) to register gambling equipment and issue registration 
 36.8   stamps; 
 36.9      (7) to provide by rule for the mandatory posting by 
 36.10  organizations conducting lawful gambling of rules of play and 
 36.11  the odds and/or house percentage on each form of lawful 
 36.12  gambling; 
 36.13     (8) to report annually to the governor and legislature on 
 36.14  its activities and on recommended changes in the laws governing 
 36.15  gambling; 
 36.16     (9) to impose civil penalties of not more than $500 per 
 36.17  violation on organizations, distributors, employees eligible to 
 36.18  make sales on behalf of a distributor, manufacturers, bingo 
 36.19  halls, and gambling managers for failure to comply with any 
 36.20  provision of this chapter or any rule or order of the board; 
 36.21     (10) to issue premises permits to organizations licensed to 
 36.22  conduct lawful gambling; 
 36.23     (11) to delegate to the director the authority to issue or 
 36.24  deny license and premises permit applications and renewals under 
 36.25  criteria established by the board; 
 36.26     (12) to suspend or revoke licenses and premises permits of 
 36.27  organizations, distributors, employees eligible to make sales on 
 36.28  behalf of a distributor, manufacturers, bingo halls, or gambling 
 36.29  managers as provided in this chapter; 
 36.30     (13) to register employees of organizations licensed to 
 36.31  conduct lawful gambling; 
 36.32     (14) to require fingerprints from persons determined by 
 36.33  board rule to be subject to fingerprinting; 
 36.34     (15) to delegate to a compliance review group of the board 
 36.35  the authority to investigate alleged violations, issue consent 
 36.36  orders, and initiate contested cases on behalf of the board; 
 37.1      (16) to order organizations, distributors, employees 
 37.2   eligible to make sales on behalf of a distributor, 
 37.3   manufacturers, bingo halls, and gambling managers to take 
 37.4   corrective actions; and 
 37.5      (17) to take all necessary steps to ensure the integrity of 
 37.6   and public confidence in lawful gambling.  
 37.7      (b) The board, or director if authorized to act on behalf 
 37.8   of the board, may by citation assess any organization, 
 37.9   distributor, employee eligible to make sales on behalf of a 
 37.10  distributor, manufacturer, bingo hall licensee, or gambling 
 37.11  manager a civil penalty of not more than $500 per violation for 
 37.12  a failure to comply with any provision of this chapter or any 
 37.13  rule adopted or order issued by the board.  Any organization, 
 37.14  distributor, employee eligible to make sales on behalf of a 
 37.15  distributor, bingo hall licensee, gambling manager, or 
 37.16  manufacturer assessed a civil penalty under this paragraph may 
 37.17  request a hearing before the board.  Appeals of citations 
 37.18  imposing a civil penalty are not subject to the provisions of 
 37.19  the administrative procedure act.  
 37.20     (c) All fees and penalties received by the board must be 
 37.21  deposited in the general fund. 
 37.22     Sec. 50.  Minnesota Statutes 1996, section 349.155, 
 37.23  subdivision 3, is amended to read: 
 37.24     Subd. 3.  [MANDATORY DISQUALIFICATIONS.] (a) In the case of 
 37.25  licenses for manufacturers, distributors, employees eligible to 
 37.26  make sales on behalf of a distributor, bingo halls, and gambling 
 37.27  managers, the board may not issue or renew a license under this 
 37.28  chapter, and shall revoke a license under this chapter, if the 
 37.29  applicant or licensee, or a director, officer, partner, 
 37.30  governor, person in a supervisory or management position of the 
 37.31  applicant or licensee, or an employee eligible to make sales on 
 37.32  behalf of the applicant or licensee: 
 37.33     (1) has ever been convicted of a felony or a crime 
 37.34  involving gambling; 
 37.35     (2) has ever been convicted of (i) assault, (ii) a criminal 
 37.36  violation involving the use of a firearm, or (iii) making 
 38.1   terroristic threats; 
 38.2      (3) is or has ever been connected with or engaged in an 
 38.3   illegal business; 
 38.4      (4) owes $500 or more in delinquent taxes as defined in 
 38.5   section 270.72; 
 38.6      (5) had a sales and use tax permit revoked by the 
 38.7   commissioner of revenue within the past two years; or 
 38.8      (6) after demand, has not filed tax returns required by the 
 38.9   commissioner of revenue.  The board may deny or refuse to renew 
 38.10  a license under this chapter, and may revoke a license under 
 38.11  this chapter, if any of the conditions in this paragraph are 
 38.12  applicable to an affiliate or direct or indirect holder of more 
 38.13  than a five percent financial interest in the applicant or 
 38.14  licensee.  
 38.15     (b) In the case of licenses for organizations, the board 
 38.16  may not issue or renew a license under this chapter, and shall 
 38.17  revoke a license under this chapter, if the organization, or an 
 38.18  officer or member of the governing body of the organization:  
 38.19     (1) has been convicted of a felony or gross misdemeanor 
 38.20  within the five years before the issuance or renewal of the 
 38.21  license; 
 38.22     (2) has ever been convicted of a crime involving gambling; 
 38.23  or 
 38.24     (3) has had a license issued by the board or director 
 38.25  permanently revoked for violation of law or board rule. 
 38.26     Sec. 51.  Minnesota Statutes 1996, section 349.161, is 
 38.27  amended to read: 
 38.28     349.161 [DISTRIBUTOR LICENSES; LICENSES FOR EMPLOYEES 
 38.29  ELIGIBLE TO MAKE SALES ON BEHALF OF A DISTRIBUTOR.] 
 38.30     Subdivision 1.  [PROHIBITED ACTS; LICENSES REQUIRED.] No 
 38.31  person may:  
 38.32     (1) sell, offer for sale, or furnish gambling equipment for 
 38.33  use within the state other than for lawful gambling exempt or 
 38.34  excluded from licensing, except to an organization licensed for 
 38.35  lawful gambling; 
 38.36     (2) sell, offer for sale, or furnish gambling equipment for 
 39.1   use within the state without having obtained a distributor 
 39.2   license or a license as an employee eligible to make sales on 
 39.3   behalf of a distributor under this section; 
 39.4      (3) sell, offer for sale, or furnish gambling equipment for 
 39.5   use within the state that is not purchased or obtained from a 
 39.6   manufacturer or distributor licensed under this chapter; or 
 39.7      (4) sell, offer for sale, or furnish gambling equipment for 
 39.8   use within the state that has the same serial number as another 
 39.9   item of gambling equipment of the same type sold or offered for 
 39.10  sale or furnished for use in the state by that distributor.  
 39.11     Subd. 2.  [LICENSE APPLICATION.] The board may issue 
 39.12  licenses for the sale of gambling equipment to persons who meet 
 39.13  the qualifications of this section if the board determines that 
 39.14  a license is consistent with the purpose of sections 349.11 to 
 39.15  349.22.  Applications must be on a form the board prescribes. 
 39.16     Subd. 4.  [FEES AND TERM OF LICENSE.] The annual fee for a 
 39.17  distributor's license is $3,500.  The annual fee for an employee 
 39.18  eligible to make sales on behalf of a distributor license is 
 39.19  $25.  The employee eligible to make sales on behalf of a 
 39.20  distributor license runs concurrently with the license of the 
 39.21  distributor unless the employee eligible to make sales on behalf 
 39.22  of a distributor license is suspended or revoked.  If an 
 39.23  employee eligible to make sales on behalf of a distributor 
 39.24  discontinues employment with the licensed distributor, the 
 39.25  employee eligible to make sales on behalf of a distributor 
 39.26  license expires on the date that the employment terminates.  
 39.27     Subd. 5.  [PROHIBITION.] (a) No distributor, or employee of 
 39.28  a distributor, may also be a wholesale distributor of alcoholic 
 39.29  beverages or an employee of a wholesale distributor of alcoholic 
 39.30  beverages. 
 39.31     (b) No distributor, or any representative, agent, 
 39.32  affiliate, or employee of a distributor, may: (1) be involved in 
 39.33  the conduct of lawful gambling by an organization; (2) keep or 
 39.34  assist in the keeping of an organization's financial records, 
 39.35  accounts, and inventories; or (3) prepare or assist in the 
 39.36  preparation of tax forms and other reporting forms required to 
 40.1   be submitted to the state by an organization. 
 40.2      (c) No distributor or any representative, agent, affiliate, 
 40.3   or employee of a distributor may provide a lessor of gambling 
 40.4   premises any compensation, gift, gratuity, premium, or other 
 40.5   thing of value. 
 40.6      (d) No distributor or any representative, agent, affiliate, 
 40.7   or employee of a distributor may participate in any gambling 
 40.8   activity at any gambling site or premises where gambling 
 40.9   equipment purchased from that distributor is being used in the 
 40.10  conduct of lawful gambling. 
 40.11     (e) No distributor or any representative, agent, affiliate, 
 40.12  or employee of a distributor may alter or modify any gambling 
 40.13  equipment, except to add a "last ticket sold" prize sticker. 
 40.14     (f) No distributor or any representative, agent, affiliate, 
 40.15  or employee of a distributor may:  (1) recruit a person to 
 40.16  become a gambling manager of an organization or identify to an 
 40.17  organization a person as a candidate to become gambling manager 
 40.18  for the organization; or (2) identify for an organization a 
 40.19  potential gambling location. 
 40.20     (g) No distributor may purchase gambling equipment for 
 40.21  resale to a person for use within the state from any person not 
 40.22  licensed as a manufacturer under section 349.163. 
 40.23     (h) No distributor or employee eligible to make sales on 
 40.24  behalf of a distributor may sell gambling equipment to any 
 40.25  person for use in Minnesota other than (i) a licensed 
 40.26  organization or organization excluded or exempt from licensing, 
 40.27  or (ii) the governing body of an Indian tribe. 
 40.28     (i) No distributor or employee eligible to make sales on 
 40.29  behalf of a distributor may sell or otherwise provide a pull-tab 
 40.30  or tipboard deal with the symbol required by section 349.163, 
 40.31  subdivision 5, paragraph (h), visible on the flare to any person 
 40.32  other than in Minnesota to a licensed organization or 
 40.33  organization exempt from licensing. 
 40.34     Subd. 8.  [EMPLOYEES OF DISTRIBUTORS.] Licensed 
 40.35  distributors shall provide the board upon request with the names 
 40.36  and home addresses of all employees.  Each distributor and 
 41.1   employee of a distributor must have in their possession a 
 41.2   picture identification card approved by the board.  No person 
 41.3   other than an employee of a licensed distributor eligible to 
 41.4   make sales on behalf of a distributor shall make any sales on 
 41.5   behalf of a licensed distributor.  No employee eligible to make 
 41.6   sales on behalf of a distributor may be employed by more than 
 41.7   one licensed distributor at a time. 
 41.8      Sec. 52.  Minnesota Statutes 1996, section 349.169, 
 41.9   subdivision 3, is amended to read: 
 41.10     Subd. 3.  [SALES AT FILED PRICES.] No manufacturer may sell 
 41.11  to a distributor, and no distributor or person eligible to make 
 41.12  sales on behalf of a distributor may sell to an organization, 
 41.13  any gambling equipment for any price other than a price the 
 41.14  manufacturer or distributor has filed with the director under 
 41.15  subdivision 1, exclusive of transportation costs. 
 41.16     Sec. 53.  Minnesota Statutes 1996, section 363.05, 
 41.17  subdivision 3, is amended to read: 
 41.18     Subd. 3.  [MISSION; EFFICIENCY.] It is part of the 
 41.19  department's mission that within the department's resources the 
 41.20  commissioner shall endeavor to: 
 41.21     (1) prevent the waste or unnecessary spending of public 
 41.22  money; 
 41.23     (2) use innovative fiscal and human resource practices to 
 41.24  manage the state's resources and operate the department as 
 41.25  efficiently as possible; 
 41.26     (3) coordinate the department's activities wherever 
 41.27  appropriate with the activities of other governmental agencies; 
 41.28     (4) use technology where appropriate to increase agency 
 41.29  productivity, improve customer service, increase public access 
 41.30  to information about government, and increase public 
 41.31  participation in the business of government; 
 41.32     (5) utilize constructive and cooperative labor-management 
 41.33  practices to the extent otherwise required by chapters 43A and 
 41.34  179A; 
 41.35     (6) include specific objectives in report to the 
 41.36  legislature on the performance report required under section 
 42.1   15.91 to increase the efficiency of agency operations, when 
 42.2   appropriate and the accomplishment of agency goals in the 
 42.3   agency's biennial budget according to section 16A.10, 
 42.4   subdivision 1; and 
 42.5      (7) recommend to the legislature, in the performance report 
 42.6   of the department required under section 15.91, appropriate 
 42.7   changes in law necessary to carry out the mission and improve 
 42.8   the performance of the department. 
 42.9      Sec. 54.  Minnesota Statutes 1996, section 469.177, 
 42.10  subdivision 11, is amended to read: 
 42.11     Subd. 11.  [DEDUCTION FOR ENFORCEMENT COSTS; 
 42.12  APPROPRIATION.] (a) The county treasurer shall deduct an amount 
 42.13  equal to 0.1 0.25 percent of any increment distributed to an 
 42.14  authority or municipality.  The county treasurer shall pay the 
 42.15  amount deducted to the state treasurer for deposit in the state 
 42.16  general fund. 
 42.17     (b) The amounts deducted and paid under paragraph (a) are 
 42.18  appropriated to the state auditor for the cost of (1) the 
 42.19  financial reporting of tax increment financing information and 
 42.20  (2) the cost of examining and auditing of authorities' use of 
 42.21  tax increment financing as provided under section 469.1771, 
 42.22  subdivision 1.  Notwithstanding section 16A.28 or any other law 
 42.23  to the contrary, this appropriation does not cancel and remains 
 42.24  available until spent.  
 42.25     Sec. 55.  Laws 1997, chapter 202, article 1, section 35, as 
 42.26  amended by Laws 1997, chapter 246, section 34, and Laws 1997, 
 42.27  Second Special Session chapter 2, section 24, is amended to read:
 42.28  Sec. 35.  BOND SALE SCHEDULE 
 42.29  The commissioner of finance shall 
 42.30  schedule the sale of state general 
 42.31  obligation bonds so that, during the 
 42.32  biennium ending June 30, 1999, no more 
 42.33  than $565,457,000 $569,184,000 will 
 42.34  need to be transferred from the general 
 42.35  fund to the state bond fund to pay 
 42.36  principal and interest due and to 
 42.37  become due on outstanding state general 
 42.38  obligation bonds.  During the biennium, 
 42.39  before each sale of state general 
 42.40  obligation bonds, the commissioner of 
 42.41  finance shall calculate the amount of 
 42.42  debt service payments needed on bonds 
 42.43  previously issued and shall estimate 
 43.1   the amount of debt service payments 
 43.2   that will be needed on the bonds 
 43.3   scheduled to be sold, the commissioner 
 43.4   shall adjust the amount of bonds 
 43.5   scheduled to be sold so as to remain 
 43.6   within the limit set by this section.  
 43.7   The amount needed to make the debt 
 43.8   service payments is appropriated from 
 43.9   the general fund as provided in 
 43.10  Minnesota Statutes, section 16A.641.  
 43.11     Sec. 56.  Laws 1997, Second Special Session chapter 2, 
 43.12  section 8, is amended to read: 
 43.13  Sec. 8.  STRATEGIC AND LONG-RANGE
 43.14  PLANNING                                                100,000
 43.15  This is a one-time appropriation from 
 43.16  the general fund to develop an 
 43.17  application for federal empowerment 
 43.18  zone and enterprise credits for local 
 43.19  communities and not-for-profit 
 43.20  organizations assist local communities 
 43.21  and not-for-profit organizations in 
 43.22  developing long-range strategic 
 43.23  community planning efforts and in 
 43.24  applying for grant dollars to support 
 43.25  local planning and implementation 
 43.26  efforts. 
 43.27     Sec. 57.  [REPEALER.] 
 43.28     Minnesota Statutes 1996, sections 3.971, subdivision 3; 
 43.29  15.90; 15.91; and 15.92; and Minnesota Statutes 1997 Supplement, 
 43.30  sections 3.987, subdivision 3; 3.989, subdivisions 1, 3, and 4; 
 43.31  14.431; 16A.11, subdivisions 3b and 3c; and 241.015, are 
 43.32  repealed. 
 43.33     Sec. 58.  [EFFECTIVE DATE.] 
 43.34     Sections 1 to 53 and 55 to 57 are effective the day 
 43.35  following final enactment.  Section 54 is effective for 
 43.36  increments distributed to an authority or municipality after 
 43.37  June 30, 1998.