HF 548

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to government operations; appropriating money for general legislative
and administrative expenses of state government; regulating state and local
government operations; directing the Legislative Coordinating Commission to
assist in fostering an understanding of ethnic and cultural diversity and assist in
issues related to preparedness for terrorism and disasters; creating the position
of poet laureate; imposing a temporary technology surcharge; establishing
provisions for grants management; requiring a state Web site with a searchable
database on state contracts and grants; promoting use of persons with disabilities
for document imaging services; modifying secretary of state provisions;
creating a state employees electronic health records pilot project; abolishing the
Department of Employee Relations and transferring duties; establishing a state
budget trends study commission; requiring best value contracts and procurement
for certain purposes; requiring reports; amending Minnesota Statutes 2006,
sections 3.303, by adding subdivisions; 4.035, subdivision 3; 5.12, subdivision 1;
15.06, subdivision 2; 15B.17, subdivision 1; 16A.102, subdivision 4; 16A.103,
subdivision 1e; 16A.1286, subdivision 2; 16A.695, subdivisions 2, 3, by adding
subdivisions; 16B.24, subdivision 5; 16B.35, subdivision 1; 16C.02, subdivisions
4, 12, 14, by adding subdivisions; 16C.03, subdivisions 2, 3, 4, 8, 16, by adding
subdivisions; 16C.05, subdivisions 1, 2; 16C.08, subdivisions 2, 4, by adding
subdivisions; 16C.10, subdivision 7; 16C.26; 16C.27, subdivision 1; 16C.28;
43A.346, subdivision 1; 103D.811, subdivision 3; 103E.505, subdivision 5;
116A.13, subdivision 5; 123B.52, subdivision 1, by adding a subdivision;
160.17, by adding a subdivision; 160.262, by adding a subdivision; 161.1419,
subdivision 8; 161.32, by adding a subdivision; 161.3412, subdivision 1; 161.38,
subdivision 4; 270B.14, by adding a subdivision; 270C.03, subdivision 1;
302A.821, subdivision 4; 308A.995, subdivision 4; 308B.121, subdivision
4; 308B.215, subdivision 2; 317A.823, subdivision 1; 321.0206; 321.0210;
323A.1003; 336.1-110; 336.9-516; 336.9-525; 358.41; 358.42; 358.50; 359.085,
subdivisions 2, 3; 365.37, by adding a subdivision; 374.13; 375.21, by adding
a subdivision; 383C.094, by adding a subdivision; 412.311; 429.041, by
adding a subdivision; 458D.21, by adding a subdivision; 469.015, by adding
a subdivision; 469.068, subdivision 1, by adding a subdivision; 469.101, by
adding a subdivision; 471.345, subdivision 5, by adding subdivisions; 473.523,
by adding a subdivision; 473.756, subdivision 12; 477A.014, subdivision 4;
491A.02, subdivision 4; 507.24, subdivision 2; 517.08, subdivisions 1b, 1c;
Laws 2005, chapter 156, article 2, section 45; Laws 2006, chapter 253, section
22, subdivision 1; Laws 2006, chapter 282, article 14, section 5; proposing
coding for new law in Minnesota Statutes, chapters 4; 5; 11A; 13; 16B; 16C;
161; 270C; 308B; 321; repealing Minnesota Statutes 2006, sections 16A.102,
subdivisions 1, 2, 3; 16C.055, subdivision 1; 16C.08, subdivision 4a; 69.051,
subdivision 1c; 359.085, subdivision 8.

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

ARTICLE 1

STATE GOVERNMENT APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2008 new text end		new text begin 2009 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 351,093,000 new text end	new text begin $ new text end	new text begin 318,435,000 new text end	new text begin $ new text end	new text begin 669,528,000 new text end
new text begin Health Care Access new text end	new text begin $ new text end	new text begin 1,871,000 new text end	new text begin $ new text end	new text begin 1,912,000 new text end	new text begin $ new text end	new text begin 3,783,000 new text end
new text begin State Government Special Revenue new text end		new text begin 2,119,000 new text end		new text begin 2,124,000 new text end		new text begin 4,243,000 new text end
new text begin Environmental new text end		new text begin 442,000 new text end		new text begin 448,000 new text end		new text begin 890,000 new text end
new text begin Remediation new text end		new text begin 250,000 new text end		new text begin 250,000 new text end		new text begin 500,000 new text end
new text begin Special Revenue new text end		new text begin 6,843,000 new text end		new text begin 3,839,000 new text end		new text begin 10,682,000 new text end
new text begin Highway User Tax Distribution new text end		new text begin 2,139,000 new text end		new text begin 2,183,000 new text end		new text begin 4,322,000 new text end
new text begin Workers' Compensation new text end		new text begin 7,640,000 new text end		new text begin 7,350,000 new text end		new text begin 14,990,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 372,397,000 new text end	new text begin $ new text end	new text begin 336,541,000 new text end	new text begin $ new text end	new text begin 708,938,000 new text end

Sec. 2. new text begin STATE GOVERNMENT APPROPRIATIONS. new text end

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

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2008 new text end		new text begin 2009 new text end

Sec. 3. new text begin LEGISLATURE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 74,694,000 new text end

new text begin $ new text end

new text begin 71,544,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 74,516,000 new text end	new text begin 71,366,000 new text end
new text begin Health Care Access new text end	new text begin 178,000 new text end	new text begin 178,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Senate new text end

new text begin 25,820,000 new text end

new text begin 23,677,000 new text end

new text begin The base budget for the Senate shall
be $23,427,000 in fiscal year 2010 and
$23,427,000 in fiscal year 2011.
new text end

new text begin Subd. 3. new text end new text begin House of Representatives new text end

new text begin 32,686,000 new text end

new text begin 31,746,000 new text end

new text begin The base budget for the house of
representatives shall be $31,496,000 in fiscal
year 2010 and $31,496,000 in fiscal year
2011.
new text end

new text begin During the biennium ending June 30, 2009,
any revenues received by the house of
representatives from sponsorship notices in
broadcast or print media are appropriated to
the house of representatives.
new text end

new text begin Subd. 4. new text end new text begin Legislative Coordinating Commission new text end

new text begin 16,188,000 new text end

new text begin 16,121,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 16,010,000 new text end	new text begin 15,943,000 new text end
new text begin Health Care Access new text end	new text begin 178,000 new text end	new text begin 178,000 new text end

new text begin The base general fund budget for the
Legislative Coordinating Commission shall
be $15,893,000 in fiscal year 2010 and
$15,893,000 in fiscal year 2011.
new text end

new text begin (a) $5,624,000 the first year and $5,469,000
the second year are for the Office of the
Revisor of Statutes.
new text end

new text begin (b) $1,257,000 the first year and $1,254,000
the second year are for the Legislative
Reference Library.
new text end

new text begin (c) $5,719,000 the first year and $5,720,000
the second year are for the Office of the
Legislative Auditor.
new text end

new text begin (d) $250,000 the first year is to the Legislative
Coordinating Commission for a facilitated
planning process relating to the Capitol
building and the Capitol complex. The
process must be conducted in cooperation
with the Capitol Area Architectural and
Planning Board and the commissioner
of administration, and must include
consideration of issues relating to renovation
and possible expansion of the Capitol
building, phasing strategies relating to
renovation of the Capitol, and related Capitol
complex planning issues. The process must
include consideration of as many options as
feasible relating to renovation of the Capitol
and related Capitol complex buildings. The
process must be completed by September
30, 2007. Beginning October 1, 2007,
the Legislative Coordinating Commission
may transfer any unexpended balance from
this appropriation to the commissioner of
administration for additional planning and
design for the renovation of the Capitol
complex.
new text end

new text begin (e) All legislative offices should, whenever
possible, implement information technology
systems that are compatible and work
seamlessly across the legislature. Wherever
possible, single systems should be
implemented to avoid unnecessary
duplication and inefficiency. The directors
of information technology for the senate,
house of representatives, and the Legislative
Coordinating Commission must submit
a written report describing their efforts
to collaborate on implementing shared
information technology systems. The report
must be submitted to the chairs of the house
of representatives and senate committees
with jurisdiction over rules and to the
Legislative Coordinating Commission on
January 15, 2008, and January 15, 2009.
new text end

Sec. 4. new text begin GOVERNOR AND LIEUTENANT GOVERNOR new text end

new text begin $ new text end

new text begin 3,679,000 new text end

new text begin $ new text end

new text begin 3,777,000 new text end

new text begin (a) This appropriation is to fund the Office of
the Governor and Lieutenant Governor.
new text end

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

new text begin (b) By September 1 of each year, the
commissioner of finance shall report to
the chairs of the senate Governmental
Operations Budget Division and the house
State Government Finance Division any
personnel costs incurred by the Office of
the Governor and Lieutenant Governor that
were supported by appropriations to other
agencies during the previous fiscal year.
The Office of the Governor shall inform the
chairs of the divisions before initiating any
interagency agreements.
new text end

Sec. 5. new text begin STATE AUDITOR new text end

new text begin $ new text end

new text begin 9,234,000 new text end

new text begin $ new text end

new text begin 9,220,000 new text end

Sec. 6. new text begin ATTORNEY GENERAL new text end

new text begin $ new text end

new text begin 26,162,000 new text end

new text begin $ new text end

new text begin 27,093,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 24,048,000 new text end	new text begin 24,974,000 new text end
new text begin State Government Special Revenue new text end	new text begin 1,719,000 new text end	new text begin 1,724,000 new text end
new text begin Environmental new text end	new text begin 145,000 new text end	new text begin 145,000 new text end
new text begin Remediation new text end	new text begin 250,000 new text end	new text begin 250,000 new text end

Sec. 7. new text begin SECRETARY OF STATE new text end

new text begin $ new text end

new text begin 9,019,000 new text end

new text begin $ new text end

new text begin 6,497,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 6,175,000 new text end	new text begin 6,497,000 new text end
new text begin Special Revenue new text end	new text begin 2,844,000 new text end

new text begin (a) $310,000 of this appropriation must be
transferred to the Help America Vote Act
account and is designated as a portion of the
match required by section 253(b)(5) of the
Help America Vote Act.
new text end

new text begin (b) $2,844,000 the first year is appropriated
from the Help America Vote Act account for
the purposes and uses authorized by federal
law. This appropriation is available until
June 30, 2009.
new text end

new text begin (c) Notwithstanding Laws 2005, chapter
162, section 34, subdivision 7, any balance
remaining in the Help America Vote Act
account after previous appropriations and the
appropriations in this section is appropriated
to the secretary of state for the purposes of
the account. This appropriation is available
until June 30, 2011.
new text end

Sec. 8. new text begin CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD new text end

new text begin $ new text end

new text begin 714,000 new text end

new text begin $ new text end

new text begin 735,000 new text end

Sec. 9. new text begin INVESTMENT BOARD new text end

new text begin $ new text end

new text begin 151,000 new text end

new text begin $ new text end

new text begin 151,000 new text end

Sec. 10. new text begin OFFICE OF ENTERPRISE TECHNOLOGY new text end

new text begin $ new text end

new text begin 16,445,000 new text end

new text begin $ new text end

new text begin 7,829,000 new text end

new text begin (a) $7,500,000 the first year is for the first
phase of an electronic licensing system.
This is a onetime appropriation. This
appropriation carries forward to the second
year.
new text end

new text begin (b) $4,000,000 the first year and $4,000,000
the second year are for information
technology security. The base appropriation
is $2,500,000 in fiscal year 2010 and
$2,500,000 in fiscal year 2011.
new text end

new text begin (c) $1,000,000 the first year is for small
agency technology infrastructure projects.
During the biennium, these amounts are
intended to include hardware and software
improvements for the Asian-Pacific Council,
the Capitol Area Architectural and Planning
Board, the Minnesota Library for the
Blind, the Minnesota State Academies, and
the Ombudsman for Mental Health and
Disabilities.
new text end

new text begin (d) $180,000 the first year is for grants to be
distributed to the counties participating in
the development of the integrated financial
system for enhancements to the system.
Enhancements include:
new text end

new text begin (1) systems to improve the tracking and
reporting of state and federal grants;
new text end

new text begin (2) electronic payments to vendors;
new text end

new text begin (3) electronic posting of state payments to
the financial system;
new text end

new text begin (4) automating revenue collection and
posting through check conversion, automatic
clearing house transactions, or credit card
processing;
new text end

new text begin (5) improvements to county budgetary
systems;
new text end

new text begin (6) storage or linkage of electronic
documents;
new text end

new text begin (7) improved executive level reporting and
extraction of data; and
new text end

new text begin (8) improved information and reporting for
audits.
new text end

new text begin The grant funds shall be distributed on a pro
rata basis to each of the counties participating
in the development of the integrated financial
system. The Minnesota Counties Computer
Cooperative, acting as a fiscal agent for
the participating counties, shall receive the
grant money for the counties. The grants
will only be distributed after $540,000 is
expended or provided from other sources.
The chief information officer may require
a report or such other information as the
chief information officer deems appropriate
to verify that the requirements of this
section have been met. This appropriation
is available until June 30, 2011, and cancels
on that date.
new text end

new text begin The chief information officer shall report to
the legislative committees and divisions with
jurisdiction over state government policy
and finance and economic development
programs.
new text end

new text begin (e) By June 30, 2010, and June 30, 2011, the
commissioner of finance, in consultation with
the chief information officer, must determine
the savings attributable to implementing the
electronic licensing system in paragraph
(a) and the information technology security
improvements provided for in paragraph (b)
in fiscal year 2010 and 2011, respectively.
The savings are estimated to be $2,551,000
for the biennium. The commissioner must
deposit the amount determined for each year
in the general fund.
new text end

Sec. 11. new text begin ADMINISTRATIVE HEARINGS new text end

new text begin $ new text end

new text begin 7,823,000 new text end

new text begin $ new text end

new text begin 7,540,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 283,000 new text end	new text begin 290,000 new text end
new text begin Workers' Compensation new text end	new text begin 7,540,000 new text end	new text begin 7,250,000 new text end

Sec. 12. new text begin ADMINISTRATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 36,874,000 new text end

new text begin $ new text end

new text begin 21,723,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin State Facilities Services new text end

new text begin 14,496,000 new text end

new text begin 11,208,000 new text end

new text begin (a) $7,888,000 the first year and $7,888,000
the second year are for office space costs of
the legislature and veterans organizations,
for ceremonial space, and for statutorily free
space.
new text end

new text begin (b) $2,500,000 the first year is to purchase
and implement a Web-enabled, shared
computer system to facilitate the state's real
property portfolio management.
new text end

new text begin By June 30, 2010, and June 30, 2011, the
commissioner of finance, in consultation
with the commissioner of administration,
must determine the savings attributable to
implementing the real property portfolio
management system in fiscal year 2010
and 2011, respectively. The savings are
estimated to be $412,000 for the biennium.
The commissioner must deposit the amount
determined for each year in the general fund.
new text end

new text begin (c) $885,000 the first year is for onetime
funding of agency relocation expenses for
the Department of Public Safety.
new text end

new text begin Subd. 3. new text end new text begin State and Community Services new text end

new text begin 3,235,000 new text end

new text begin 3,342,000 new text end

new text begin (a) $60,000 the first year and $240,000 the
second year are to fund activities to prepare
for and promote the 2010 census. Base
funding for this activity is $260,000 in fiscal
year 2010 and $180,000 in fiscal year 2011.
new text end

new text begin (b) $889,000 the first year and $895,000 the
second year are for the Land Management
Information Center.
new text end

new text begin (c) $196,000 the first year and $196,000 the
second year are for the Office of the State
Archaeologist.
new text end

new text begin (d) $79,000 the first year is for the genetic
information work group and report. This
appropriation is available until June 30, 2009.
new text end

new text begin Subd. 4. new text end new text begin Administrative Management Services new text end

new text begin 5,672,000 new text end

new text begin 5,218,000 new text end

new text begin (a) $125,000 the first year is to create an
Office of Grants Management to standardize
state grants management policies and
procedures. For the fiscal year beginning
July 1, 2008, the commissioner must
deduct up to $125,000 from state grants
to nongovernmental entities, as necessary
to fund the commissioner's duties under
new Minnesota Statutes, sections 16B.97
and 16B.98. The amount deducted from
appropriations for these grants is transferred
to the commissioner for purposes of
administering these sections.
new text end

new text begin (b) $250,000 the first year and $250,000
the second year are to establish a small
agency resource team to consolidate and
streamline the human resources and financial
management activities for small state
agencies, boards, and councils.
new text end

new text begin (c) $500,000 the first year is a onetime
appropriation for a targeted group business
disparity study. The commissioner
must cooperate with units of local
government conducting similar studies. The
commissioner shall ensure that the results of
the study are kept current and that any new or
upgraded accounting or procurement systems
properly record purchases from minority and
female-owned businesses through the use of
state contracts, and the availability of bids
from those businesses.
new text end

new text begin (d) $74,000 the first year and $74,000
the second year are for the Council on
Developmental Disabilities.
new text end

new text begin (e) $140,000 in fiscal year 2008 and $140,000
in fiscal year 2009 are for a grant to the
Council on Developmental Disabilities
for the purpose of establishing a statewide
self-advocacy network for persons with
intellectual and developmental disabilities
(ID/DD). The self-advocacy network shall:
new text end

new text begin (1) ensure that persons with ID/DD are
informed of their rights in employment,
housing, transportation, voting, government
policy, and other issues pertinent to the
ID/DD community;
new text end

new text begin (2) provide public education and awareness
of the civil and human rights issues persons
with ID/DD face;
new text end

new text begin (3) provide funds, technical assistance, and
other resources for self-advocacy groups
across the state; and
new text end

new text begin (4) organize systems of communications
to facilitate an exchange of information
between self-advocacy groups.
new text end

new text begin This appropriation is in addition to any other
appropriations and must be added to the base
appropriation beginning in fiscal year 2010.
new text end

new text begin Subd. 5. new text end new text begin Fiscal Agent new text end

new text begin 500,000 new text end

new text begin $500,000 is for a grant to Washington
County for capital improvements detailed
in the approved planned unit development
for the Disabled Veteran's Rest Camp to
provide increased capacity, amenities, access,
and safety for Minnesota veterans. This
appropriation is available until spent.
new text end

new text begin Subd. 6. new text end new text begin Public Broadcasting new text end

new text begin 12,971,000 new text end

new text begin 1,955,000 new text end

new text begin (a) $6,650,000 is for grants to noncommercial
television stations to assist with the continued
conversion to a digital broadcast signal as
mandated by the federal government. This
appropriation must be used to assist each
station to complete its digital production
facilities and interconnect with other
Minnesota public television stations. In
order to qualify for these grants, a station
must meet the criteria established for grants
in Minnesota Statutes, section 129D.12,
subdivision 2.
new text end

new text begin (b) $2,000,000 is for grants to Minnesota
Public Radio to assist with conversion to a
digital broadcast signal.
new text end

new text begin (c) $2,461,000 the first year and $1,161,000
the second year are for matching grants for
public television.
new text end

new text begin (d) $200,000 the first year and $200,000
the second year are for public television
equipment grants. Equipment or matching
grant allocations shall be made after
considering the recommendations of the
Minnesota Public Television Association.
new text end

new text begin (e) $17,000 the first year and $17,000 the
second year are for grants to the Twin Cities
regional cable channel.
new text end

new text begin (f) $413,000 in fiscal year 2008 and $287,000
in fiscal year 2009 are for community service
grants to public educational radio stations.
new text end

new text begin (g) $400,000 in fiscal year 2008 and $100,000
in fiscal year 2009 are for equipment grants
to public educational radio stations.
new text end

new text begin (h) The grants in paragraphs (f) and (g)
must be allocated after considering the
recommendations of the Association of
Minnesota Public Educational Radio Stations
under Minnesota Statutes, section 129D.14.
new text end

new text begin (i) $830,000 the first year and $190,000
the second year are for equipment grants to
Minnesota Public Radio, Inc.
new text end

new text begin (j) Any unencumbered balance remaining the
first year for grants to public television or
radio stations does not cancel and is available
for the second year.
new text end

Sec. 13. new text begin CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD new text end

new text begin $ new text end

new text begin 427,000 new text end

new text begin $ new text end

new text begin 373,000 new text end

new text begin $65,000 in fiscal year 2008 is for the
decennial expenses related to the board's
duties under Minnesota Statutes, section
473.864, subdivisions 1 and 2. Money
appropriated in fiscal year 2008 is available
until June 30, 2009. This is a onetime
appropriation.
new text end

Sec. 14. new text begin FINANCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 15,796,000 new text end

new text begin $ new text end

new text begin 15,596,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin State Financial Management new text end

new text begin 8,773,000 new text end

new text begin 8,905,000 new text end

new text begin $100,000 the first year is for the state's
share of the cost of bankruptcy counsel
representing joint interests of the state and
the city of Duluth in the Northwest Airlines
bankruptcy. This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end new text begin Information and Management Services new text end

new text begin 7,023,000 new text end

new text begin 6,691,000 new text end

new text begin $500,000 the first year is for costs related to
the Minnesota Accounting and Procurement
System (MAPS).
new text end

Sec. 15. new text begin EMPLOYEE RELATIONS new text end

new text begin $ new text end

new text begin 5,545,000 new text end

new text begin $ new text end

new text begin 5,589,000 new text end

Sec. 16. new text begin REVENUE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 129,420,000 new text end

new text begin $ new text end

new text begin 123,224,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 125,291,000 new text end	new text begin 119,004,000 new text end
new text begin Health Care Access new text end	new text begin 1,693,000 new text end	new text begin 1,734,000 new text end
new text begin Highway User Tax Distribution new text end	new text begin 2,139,000 new text end	new text begin 2,183,000 new text end
new text begin Environmental new text end	new text begin 297,000 new text end	new text begin 303,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in subdivisions 2 and 3.
new text end

new text begin Subd. 2. new text end new text begin Tax System Management new text end

new text begin 109,098,000 new text end

new text begin 101,045,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 104,969,000 new text end	new text begin 96,825,000 new text end
new text begin Health Care Access new text end	new text begin 1,693,000 new text end	new text begin 1,734,000 new text end
new text begin Highway User Tax Distribution new text end	new text begin 2,139,000 new text end	new text begin 2,183,000 new text end
new text begin Environmental new text end	new text begin 297,000 new text end	new text begin 303,000 new text end

new text begin (a) $6,910,000 the first year and $8,704,000
the second year are for additional activities
to identify and collect tax liabilities from
individuals and businesses that currently
do not pay all taxes owed. This initiative
is expected to result in new general fund
revenues of $42,400,000 for the biennium
ending June 30, 2009.
new text end

new text begin (b) The department must report to the chairs
of the house of representatives Ways and
Means and senate Finance Committees by
March 1, 2008, and January 15, 2009, on the
following performance indicators:
new text end

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

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

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

new text begin (c) The reports must also identify base-level
expenditures and staff positions related to
compliance and audit activities, including
baseline information as of January 1, 2006.
The information must be provided at the
budget activity level.
new text end

new text begin (d) $12,000,000 the first year is for the
purchase and development of an integrated
tax software package.
new text end

new text begin By June 30, 2010, and June 30, 2011, the
commissioner of finance, in consultation with
the commissioner of revenue, must determine
the savings attributable to implementing the
integrated tax software package in fiscal year
2010 and 2011, respectively. The savings are
estimated to be $1,975,000 for the biennium.
The commissioner must deposit the amount
determined for each year in the general fund.
new text end

new text begin (e) $75,000 the first year and $75,000 the
second year are for grants to one or more
nonprofit organizations, qualifying under
section 501(c)(3) of the Internal Revenue
Code of 1986, to coordinate, facilitate,
encourage, and aid in the provision of
taxpayer assistance services. For purposes
of this paragraph, "taxpayer assistance
services" means accounting and tax
preparation services provided by volunteers
to low-income and disadvantaged Minnesota
residents to help them file federal and
state income tax returns and Minnesota
property tax refund claims and may include
providing personal representation before
the Department of Revenue and Internal
Revenue Service.
new text end

new text begin Subd. 3. new text end new text begin Accounts Receivable Management new text end

new text begin 20,322,000 new text end

new text begin 22,179,000 new text end

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

Sec. 17. new text begin GAMBLING CONTROL new text end

new text begin $ new text end

new text begin 2,869,000 new text end

new text begin $ new text end

new text begin 2,940,000 new text end

new text begin These appropriations are from the lawful
gambling regulation account in the special
revenue fund.
new text end

Sec. 18. new text begin RACING COMMISSION new text end

new text begin $ new text end

new text begin 1,130,000 new text end

new text begin $ new text end

new text begin 899,000 new text end

new text begin (a) These appropriations are from racing
and card playing regulation accounts in the
special revenue fund.
new text end

new text begin (b) $295,000 the first year and $64,000 the
second year and thereafter are for information
technology improvements implemented in
consultation with the Office of Enterprise
Technology as part of the small agency
technology initiative.
new text end

Sec. 19. new text begin STATE LOTTERY new text end

new text begin Notwithstanding Minnesota Statutes, section
349A.10, subdivision 3, the operating budget
must not exceed $27,378,000 in fiscal year
2008 and $28,141,000 in fiscal year 2009.
new text end

Sec. 20. new text begin TORT CLAIMS new text end

new text begin $ new text end

new text begin 161,000 new text end

new text begin $ new text end

new text begin 161,000 new text end

new text begin To be spent by the commissioner of finance.
If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.
new text end

Sec. 21. new text begin MINNESOTA STATE RETIREMENT SYSTEM new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 1,608,000 new text end

new text begin $ new text end

new text begin 1,649,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Legislators new text end

new text begin 1,170,000 new text end

new text begin 1,200,000 new text end

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

new text begin Subd. 3. new text end new text begin Constitutional Officers new text end

new text begin 438,000 new text end

new text begin 449,000 new text end

new text begin Under Minnesota Statutes, section 352C.001.
new text end

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

Sec. 22. new text begin MINNEAPOLIS EMPLOYEES RETIREMENT FUND new text end

new text begin $ new text end

new text begin 9,000,000 new text end

new text begin $ new text end

new text begin 9,000,000 new text end

new text begin These amounts are estimated to be needed
under Minnesota Statutes, section 422A.101,
subdivision 3.
new text end

Sec. 23. new text begin TEACHERS RETIREMENT ASSOCIATION new text end

new text begin $ new text end

new text begin 15,800,000 new text end

new text begin $ new text end

new text begin 15,800,000 new text end

new text begin The amounts estimated to be needed are as
follows:
new text end

new text begin (a) Special direct state aid authorized under Minnesota Statutes, section 354A.12, subdivisions 3a and 3c. new text end

new text begin 13,300,000 new text end

new text begin 13,300,000 new text end

new text begin (b) Special direct state matching aid authorized under Minnesota Statutes, section 354A.12, subdivision 3b. new text end

new text begin 2,500,000 new text end

new text begin 2,500,000 new text end

Sec. 24. new text begin ST. PAUL TEACHERS RETIREMENT FUND new text end

new text begin $ new text end

new text begin 2,967,000 new text end

new text begin $ new text end

new text begin 2,967,000 new text end

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

Sec. 25. new text begin AMATEUR SPORTS COMMISSION new text end

new text begin $ new text end

new text begin 303,000 new text end

new text begin $ new text end

new text begin 305,000 new text end

new text begin (a) The base budget for the Amateur Sports
Commission shall be $220,000 in fiscal year
2010 and $220,000 in fiscal year 2011.
new text end

new text begin (b) The amount available for appropriation
to the commission under Laws 2005, chapter
156, article 2, section 43, is reduced in the
first year and the second year by the amounts
appropriated in this section.
new text end

Sec. 26. new text begin COUNCIL ON BLACK MINNESOTANS new text end

new text begin $ new text end

new text begin 325,000 new text end

new text begin $ new text end

new text begin 333,000 new text end

Sec. 27. new text begin COUNCIL ON CHICANO/LATINO AFFAIRS new text end

new text begin $ new text end

new text begin 308,000 new text end

new text begin $ new text end

new text begin 314,000 new text end

Sec. 28. new text begin COUNCIL ON ASIAN-PACIFIC MINNESOTANS new text end

new text begin $ new text end

new text begin 289,000 new text end

new text begin $ new text end

new text begin 289,000 new text end

Sec. 29. new text begin INDIAN AFFAIRS COUNCIL new text end

new text begin $ new text end

new text begin 654,000 new text end

new text begin $ new text end

new text begin 493,000 new text end

new text begin (a) $80,000 in the first year is for the
acquisition of an Indian burial site in
Becker County. The Indian Affairs Council
shall solicit donations from federal, state,
nonprofit, private, and tribal sources for this
purpose. This is a onetime appropriation and
is available for expenditure until June 30,
2009.
new text end

new text begin (b) $90,000 in the first year is for transfer to
the director of the Minnesota Office of Higher
Education for a grant for the Dakota/Ojibwe
Language Revitalization Project to expand
an existing pilot project to promote activities
and programs that are specific to promoting
revitalization of indigenous language for
American Indian children who do not live
on an Indian reservation. The pilot project
shall focus on developing programs that
meet the language needs of children in
prekindergarten through grade 12. This is a
onetime appropriation.
new text end

Sec. 30. new text begin GENERAL CONTINGENT ACCOUNTS new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin $ new text end

new text begin 500,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 500,000 new text end	new text begin -0- new text end
new text begin State Government Special Revenue new text end	new text begin 400,000 new text end	new text begin 400,000 new text end
new text begin Workers' Compensation new text end	new text begin 100,000 new text end	new text begin 100,000 new text end

new text begin (a) The appropriations in this section
may only be spent with the approval of
the governor after consultation with the
Legislative Advisory Commission pursuant
to Minnesota Statutes, section 3.30.
new text end

new text begin (b) If an appropriation in this section for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin (c) If a contingent account appropriation
is made in one fiscal year, it should be
considered a biennial appropriation.
new text end

Sec. 31. new text begin CARRYFORWARD AUTHORIZATION FOR TECHNOLOGY.
new text end

new text begin With the approval of the commissioner of finance, agencies may carry forward up to
$5,756,000 of unexpended and unencumbered nongrant operating balances from fiscal
year 2007 to fiscal year 2008. Money carried forward under this section must be deposited
in accounts in the special revenue fund. Money in the accounts created under this section
is appropriated to the commissioner of finance in fiscal year 2008 for onetime costs
associated with technology infrastructure and technology systems development projects.
The commissioner of finance must report to the legislative committees with jurisdiction
over finance regarding the use of the authority provided in this section, including a report
on July 15, 2007, regarding the money carried forward under this section and a report on
July 15, 2008, and July 15, 2009, regarding the uses of the money.
new text end

Sec. 32. new text begin BALANCE CARRIED FORWARD.
new text end

new text begin Notwithstanding Minnesota Statutes, section 16A.1522, subdivision 4, any positive
unrestricted general fund budgetary balance as of June 30, 2007, is carried forward to the
fiscal year ending June 30, 2008.
new text end

ARTICLE 2

STATE GOVERNMENT OPERATIONS

Section 1.

Minnesota Statutes 2006, section 3.303, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Ethnic heritage and new Americans. new text end

new text begin The commission shall undertake
activities it determines are necessary to assist state government to foster an understanding
and appreciation of ethnic and cultural diversity in Minnesota, to identify underutilized
resources within the immigrant community, and to facilitate the full participation of
immigrants in social, cultural, and political life in this state. The commission may
appoint a working group under section 3.305, subdivision 6, to assist the commission in
these duties. A working group under this subdivision may include legislators and public
members. The commission may provide compensation for public members as provided
in section 15.0575. In performing duties under this subdivision, the commission shall
collaborate with the councils established in sections 3.9223, 3.9225, and 3.9226. This
subdivision expires June 30, 2009.
new text end

Sec. 2.

Minnesota Statutes 2006, section 3.303, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Preparedness for terrorism and disasters. new text end

new text begin The commission shall
undertake activities it determines are necessary to advise the legislature and oversee
executive activities on issues related to homeland security, emergency management,
man-made and natural disasters, terrorism, bioterrorism, public health emergencies, and
vulnerabilities in public and private infrastructures. The commission may appoint a
working group under section 3.305, subdivision 6, to assist the commission in these duties.
A working group under this subdivision may include legislators and public members.
The commission may provide compensation for public members as provided in section
15.0575. This subdivision expires June 30, 2011.
new text end

Sec. 3.

Minnesota Statutes 2006, section 4.035, subdivision 3, is amended to read:

Subd. 3.

Expiration date.

Unless an earlier date is specified by statute or by
executive order, an executive order shall expire 90 days after the date that the governor
who issued the order deleted text begin vacates deleted text end new text begin leaves new text end office.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

new text begin [4.60] POET LAUREATE.
new text end

new text begin (a) The position of poet laureate of the state of Minnesota is established. The
Minnesota Humanities Commission must solicit nominations for the poet laureate
appointment and must make recommendations to the governor. After receiving
recommendations from the Minnesota Humanities Commission, the governor shall
appoint a state poet laureate and conduct appropriate ceremonies to honor the person
appointed. The person appointed as poet laureate continues to serve in this position until
the governor appoints another person.
new text end

new text begin (b) State agencies and officers are encouraged to use the services of the poet laureate
for appropriate ceremonies and celebrations.
new text end

Sec. 5.

Minnesota Statutes 2006, section 5.12, subdivision 1, is amended to read:

Subdivision 1.

Fees.

The secretary of state shall charge a fee of $5 for each
certificate or certification of a copy of any document filed in the Office of the Secretary
of State. The secretary of state shall charge a fee of $3 for a copy of an original filing of
a corporation, limited partnership, new text begin assumed name, or new text end trade or service mark deleted text begin , or for the
deleted text end deleted text begin complete record of a certificate of assumed name deleted text end . The secretary of state shall charge a
fee of $3 for a copy of any or all subsequent filings of a corporation, limited partnership,
new text begin assumed name, new text end or trade or service mark. The secretary of state shall charge a fee of $1 per
page for copies of other nonuniform commercial code documents filed with the secretary of
state. At the time of filing, the secretary of state may provide at the public counter, without
charge, a copy of a filing, ten or fewer pages in length, to the person making the filing.

Sec. 6.

new text begin [5.32] TEMPORARY TECHNOLOGY SURCHARGE.
new text end

new text begin Subdivision 1. new text end

new text begin Surcharge. new text end

new text begin For fiscal years 2008 and 2009, the following technology
surcharges are imposed on the filing fees required under the following statutes:
new text end

new text begin (1) $25 for articles of incorporation filed under section 302A.151;
new text end

new text begin (2) $25 for articles of organization filed under section 322B.17;
new text end

new text begin (3) $25 for applications for certificates of authority to transact business in Minnesota
filed under section 303.06;
new text end

new text begin (4) $20 for annual reports filed by non-Minnesota corporations under section
303.14; and
new text end

new text begin (5) $50 for reinstatements to authority to transact business in Minnesota filed under
section 303.19.
new text end

new text begin Subd. 2. new text end

new text begin Deposit. new text end

new text begin The surcharges listed in subdivision 1 shall be deposited into the
uniform commercial code account.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2009.
new text end

Sec. 7.

new text begin [11A.27] REPORT ON INVESTMENT CONSULTANT ACTIVITIES
AND DELIVERABLES.
new text end

new text begin (a) Annually, on or before November 1, the State Board of Investment shall file a
report with the Legislative Reference Library on the activities and work product during
that year of any investment consultants retained by the board.
new text end

new text begin (b) The report must include the following items:
new text end

new text begin (1) the total contract fee paid to each investment consultant;
new text end

new text begin (2) a listing of the projects in which the investment consultant was involved; and
new text end

new text begin (3) examples of the written work product provided by the investment consultant on
those projects during the report coverage period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2007.
new text end

Sec. 8.

new text begin [13.595] GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (a) "Completion of the evaluation process" means that the granting agency has
completed negotiating the grant agreement with the selected grantee.
new text end

new text begin (b) "Grant agreement" has the meaning given in section 16B.97, subdivision 1.
new text end

new text begin (c) "Grantee" means a person that applies for or receives a grant.
new text end

new text begin (d) "Granting agency" means the state agency that provides the grant.
new text end

new text begin (e) "Opened" means the act that occurs once the deadline for submitting a response
to a proposal to the granting agency has been reached.
new text end

new text begin (f) "Request for proposal" means the data outlining the responsibilities the granting
agency wants the grantee to assume.
new text end

new text begin (g) "Response" means the data submitted by a grantee as required by a request for
proposal.
new text end

new text begin Subd. 2. new text end

new text begin Request for applications. new text end

new text begin Data created by a granting agency to create a
request for proposal is classified as nonpublic until the request for proposal is published.
To the extent that a granting agency involves persons outside the granting agency to create
the request for proposal, the data remain nonpublic in the hands of all persons who may
not further disseminate any data that are created or reviewed as part of the request for
proposal development. At publication, the data in the request for proposal is public.
new text end

new text begin Subd. 3. new text end

new text begin Responses to request for proposals. new text end

new text begin (a) Responses submitted by a grantee
are private or nonpublic until the responses are opened. Once the responses are opened,
the name and address of the grantee and the amount requested is public. All other data in a
response is private or nonpublic data until completion of the evaluation process. After a
granting agency has completed the evaluation process, all remaining data in the responses
is public with the exception of trade secret data as defined and classified in section 13.37.
A statement by a grantee that the response is copyrighted or otherwise protected does
not prevent public access to the response.
new text end

new text begin (b) If all responses are rejected prior to completion of the evaluation process,
all data, other than that made public at the opening, remain private or nonpublic
until a resolicitation of proposals results in completion of the evaluation process or a
determination is made to abandon the grant. If the rejection occurs after the completion of
the evaluation process, the data remain public. If a resolicitation of proposals does not
occur within one year of the grant opening date, the remaining data become public.
new text end

new text begin Subd. 4. new text end

new text begin Evaluation data. new text end

new text begin (a) Data created or maintained by a granting agency as
part of the evaluation process referred to in this section are protected nonpublic data until
completion of the evaluation process at which time the data are public with the exception
of trade secret data as defined and classified in section 13.37.
new text end

new text begin (b) If a granting agency asks individuals outside the granting agency to assist with
the evaluation of the responses, the granting agency may share not public data in the
responses with those individuals. The individuals participating in the evaluation may not
further disseminate the not public data they review.
new text end

Sec. 9.

Minnesota Statutes 2006, section 15.06, subdivision 2, is amended to read:

Subd. 2.

Term of office; successor.

The term of a commissioner shall end with the
term of the office of governor. deleted text begin If the appointing authority is the governor deleted text end new text begin In addition new text end , the
term shall end deleted text begin on the date the governor who appointed the commissioner deleted text end new text begin if the governor new text end
vacates office. The appointing authority shall submit to the president of the senate
the name of an appointee as permanent commissioner as provided by section 15.066,
subdivision 2, within 45 legislative days after the end of the term of a commissioner
and within 45 legislative days after the occurrence of a vacancy. The appointee shall
take office as permanent commissioner when the senate notifies the appointing authority
that it has consented to the appointment. A commissioner shall serve at the pleasure of
the appointing authority.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2006, section 15B.17, subdivision 1, is amended to read:

Subdivision 1.

Proposals.

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

(b) The public body must provide enough money for the board's review and planning
if the board decides its review and planning services are necessary. new text begin Money received by the
board under this subdivision is deposited in the special revenue fund and appropriated to
the board.
new text end

Sec. 11.

Minnesota Statutes 2006, section 16A.102, subdivision 4, is amended to read:

Subd. 4.

Reporting information.

deleted text begin When updated information is available deleted text end At
the time of a state revenue and expenditure forecast as specified in section 16A.103,
subdivision 1, and after the completion of a legislative session, the Department of Finance
must report on revenue relative to personal income deleted text begin as specified in subdivision 1 deleted text end . new text begin The
information must specify (1) the share of personal income to be collected in taxes and
other revenues to pay for state and local government services and (2) the division of that
revenue between state and local government revenues.
new text end

Sec. 12.

Minnesota Statutes 2006, section 16A.103, subdivision 1e, is amended to read:

Subd. 1e.

Economic information.

The commissioner must review economic
information including economic forecasts with legislative fiscal staff no later than two
weeks before the forecast is released. The commissioner must invite the chairs and lead
minority members of the senate deleted text begin State Government deleted text end Finance Committee and the house
Ways and Means Committee, and legislative fiscal staff to attend any meetings held with
outside economic advisors. The commissioner must provide legislative fiscal staff with
monthly economic forecast information received from outside sources.

Sec. 13.

Minnesota Statutes 2006, section 16A.1286, subdivision 2, is amended to read:

Subd. 2.

Billing procedures.

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

Sec. 14.

Minnesota Statutes 2006, section 16A.695, subdivision 2, is amended to read:

Subd. 2.

Leases and management contracts.

(a) A public officer or agency that
is authorized by law to lease or enter into a management contract with respect to state
bond financed property shall comply with this subdivision. new text begin A reference to a lease or
management contract in this subdivision includes any amendments, modifications, or
alterations to the referenced lease or management contract and refers to the lease wherein
the public officer or agency is the lessor of the state bond financed property and the other
contracting party is the lessee.
new text end

(b) The lease or management contract may be entered into for the express purpose of
carrying out a governmental program established or authorized by law and established by
official action of the contracting public officer or agency, in accordance with orders of the
commissioner intended to ensure the legality and tax-exempt status of bonds issued to
finance the property, and with the approval of the commissioner. A lease or management
contract deleted text begin , including any renewals that are solely at the option of the lessee, deleted text end must be for a
term substantially less than the useful life of the property, but may allow renewal beyond
that term upon a determination by the lessor that the new text begin lessee has demonstrated that the new text end use
continues to carry out the governmental program. new text begin If the lessor and lessee do not renew the
lease or management contract and if the lessee has contributed to the land and the capital
improvements on the state bond financed property, the lessor may agree to reimburse the
lessee for its investment in the land and capital improvements. The reimbursement may be
paid, at the option of the lessor and lessee, at the time of nonrenewal without a requirement
for a prior escrow of funds or at a later date and on additional terms agreed to by the lessor
and the lessee. new text end A lease or management contract must be terminable by the contracting
public officer or agency if the other contracting party defaults under the contract or if the
governmental program is terminated or changed, and must provide for program oversight
by the contracting public officer or agency. new text begin The expiration or termination of a lease or
management agreement does not require that the state bond proceeds be repaid or that
the property be sold, so long as the property continues to be operated by, or on behalf of,
the public officer or agency for the intended governmental program. new text end Money received by
the public officer or agency under the lease or management contract that is not needed
to pay and not authorized to be used to pay operating costs of the property, or to pay the
principal, interest, redemption premiums, and other expenses when due on debt related to
the property other than state bonds, must be:

(1) paid to the commissioner in the same proportion as the state bond financing is
to the total public debt financing for the property, excluding debt issued by a unit of
government for which it has no financial liability;

(2) deposited in the state bond fund; and

(3) used to pay or redeem or defease bonds issued to finance the property in
accordance with the commissioner's order authorizing their issuance.

The money paid to the commissioner is appropriated for this purpose.

(c) With the approval of the commissioner, a lease or management contract between
a city and a nonprofit corporation under section 471.191, subdivision 1, need not require
the lessee to pay rentals sufficient to pay the principal, interest, redemption premiums,
and other expenses when due with respect to state bonds issued to acquire and better
the facilities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2006,
and applies to leases, grant agreements, or management agreements entered into on or
after that date.
new text end

Sec. 15.

Minnesota Statutes 2006, section 16A.695, subdivision 3, is amended to read:

Subd. 3.

Sale of property.

A public officer or agency shall not sell any state bond
financed property unless the public officer or agency determines by official action that
the property is no longer usable or needed by the public officer or agency to carry out
the governmental program for which it was acquired or constructed, the sale is made as
authorized by law, the sale is made for fair market value, and the sale is approved by the
commissioner. If any state bonds issued to purchase or better the state bond financed
property that is sold remain outstanding on the date of sale, the net proceeds of sale must
be applied as follows:

(1) if the state bond financed property was acquired and bettered solely with state
bond proceeds, the net proceeds of sale must be paid to the commissioner deleted text begin , deleted text end new text begin and new text end deposited
in the state deleted text begin bond fund, and used to pay or redeem or defease the outstanding state bonds in
accordance with the commissioner's order authorizing their issuance, and the proceeds are
appropriated for this purpose deleted text end new text begin treasury new text end ; or

(2) if the state bond financed property was acquired or bettered partly with state
bond proceeds and partly with other money, the net proceeds of sale must be used: first, to
pay to the state the amount of state bond proceeds used to acquire or better the property;
second, to pay in full any outstanding public or private debt incurred to acquire or better
the property; deleted text begin and deleted text end third, new text begin to pay interested public and private entities, other than any
public officer or agency or any private lender already paid in full, the amount of money
contributed to the acquisition or betterment of the property; and fourth, new text end any excess over the
amount needed for those purposes must be divided in proportion to the shares contributed
to the acquisition or betterment of the property and paid to the interested public and
private entities, other than any private lender already paid in full, and the proceeds are
appropriated for this purpose. In calculating the share contributed by each entity, the
amount to be attributed to the owner of the property shall be the fair market value of the
property that was bettered by state bond proceeds at the time the betterment began.

When all of the net proceeds of sale have been applied as provided in this
subdivision, this section no longer applies to the property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2006,
and applies to leases, grant agreements, or management agreements entered into on or
after that date.
new text end

Sec. 16.

Minnesota Statutes 2006, section 16A.695, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Match requirements. new text end

new text begin Recipients of grants from money appropriated
from the bond proceeds fund may be required to demonstrate a commitment of money
from nonstate sources. This matching money may be pledged payments that have been
deposited into a segregated account or multiyear pledges that are converted into cash or
cash equivalent through a loan or irrevocable letter of credit from a financial institution.
The loan or irrevocable letter of credit may be secured by a lien on the state bond financed
property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2006,
and applies to leases, grant agreements, or management agreements entered into on or
after that date.
new text end

Sec. 17.

Minnesota Statutes 2006, section 16A.695, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin Ground lease for state bond financed property. new text end

new text begin A public officer or
agency, as lessee, may lease real property and improvements that are to be acquired or
improved with state bond proceeds. The lease must be for a term equal to or longer than
125 percent of the useful life of the property. The expiration of the lease upon the end of
its term does not require that the state be repaid or that the property be sold and upon the
expiration the real property and improvements are no longer state bond financed property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2006,
and applies to leases, grant agreements, or management agreements entered into on or
after that date.
new text end

Sec. 18.

Minnesota Statutes 2006, section 16A.695, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin General applicability. new text end

new text begin (a) This section establishes requirements for
the receipt and use of general obligation grants and the ownership and operation of
state bond-financed property. General obligation grants may only be issued and used to
finance the acquisition and betterment of public lands and buildings and other public
improvements of a capital nature that are used to operate a governmental program, and
for predesign and design activities for specifically identified projects that involve the
operation of a governmental program or activity. A general obligation grant may not be
used for general operating expenses, staffing, or general master planning. A public officer
or agency that is the recipient of a general obligation grant must comply with this section
in its use of the general obligation grant and operation, management, lease, and sale
of state bond-financed property. A public officer or agency that uses the proceeds of a
general obligation grant for any unauthorized purpose or in violation of this section must
immediately repay the outstanding balance of the grant to the commissioner, and a failure
to comply authorizes the commissioner to recover the outstanding balance as a setoff
against any state aid provided to the public officer or agency.
new text end

new text begin (b) This section does not create any new authority regarding the ownership,
construction, rehabilitation, use, operation, lease management, or sale of state
bond-financed property, or the operation of the governmental program that will be
operated on the property. Any authority that is needed to enter into a management contract
or lease of property, to sell property, or to operate a governmental program or carry out
any activity contained in the law that appropriates money for a general obligation grant
must be provided by as contained in some other law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective on and after July 1, 2007.
new text end

Sec. 19.

Minnesota Statutes 2006, section 16A.695, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Grant agreement. new text end

new text begin All general obligation grants must be evidenced by
a grant agreement that specifies:
new text end

new text begin (1) how the general obligation grant will be used;
new text end

new text begin (2) the governmental program that will be operated on the state bond-financed
property; and
new text end

new text begin (3) that the state bond-financed property must be operated in compliance with this
section, all state and federal laws, and in a manner that will not cause the interest on the
state general obligation bonds to be or become subject to federal income taxation for any
reason. A grant agreement must comply with this section, the Minnesota Constitution,
and all commissioner's orders, and also contain other provisions the commissioner of the
agency making the grant deems appropriate. The commissioner shall draft and make
available forms for grant agreements that satisfy the requirements of this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective on and after July 1, 2007.
new text end

Sec. 20.

Minnesota Statutes 2006, section 16B.24, subdivision 5, is amended to read:

Subd. 5.

Renting out state property.

(a) Authority. The commissioner may rent
out state property, real or personal, that is not needed for public use, if the rental is not
otherwise provided for or prohibited by law. The property may not be rented out for
more than five years at a time without the approval of the State Executive Council and
may never be rented out for more than 25 years. A rental agreement may provide that
the state will reimburse a tenant for a portion of capital improvements that the tenant
makes to state real property if the state does not permit the tenant to renew the lease at
the end of the rental agreement.

(b) Restrictions. Paragraph (a) does not apply to state trust fund lands, other state
lands under the jurisdiction of the Department of Natural Resources, lands forfeited for
delinquent taxes, lands acquired under section 298.22, or lands acquired under section
41.56 which are under the jurisdiction of the Department of Agriculture.

(c) Rental of living accommodations. The commissioner shall establish rental rates
for all living accommodations provided by the state for its employees. Money collected as
rent by state agencies pursuant to this paragraph must be deposited in the state treasury
and credited to the general fund.

(d) Lease of space in certain state buildings to state agencies. The commissioner
may lease portions of the state-owned buildings deleted text begin in the Capitol complex, the Capitol
Square Building, the Health Building, and the building at 1246 University Avenue, St.
Paul, Minnesota, deleted text end new text begin under the custodial control of the commissioner new text end to state agencies and
the court administrator on behalf of the judicial branch of state government and charge
rent on the basis of space occupied. Notwithstanding any law to the contrary, all money
collected as rent pursuant to the terms of this section shall be deposited in the state
treasury. Money collected as rent to recover the bond interest costs of a building funded
from the state bond proceeds fund shall be credited to the general fund. Money collected
as rent to recover the depreciation costs of a building funded from the state bond proceeds
fund and money collected as rent to recover capital expenditures from capital asset
preservation and replacement appropriations and statewide building access appropriations
shall be credited to a segregated new text begin asset preservation and replacement new text end account in a special
revenue fund. Fifty percent of the money credited to the account each fiscal year must
be transferred to the general fund. The remaining money in the account is appropriated
to the commissioner to be expended for asset preservation projects as determined by the
commissioner. Money collected as rent to recover the depreciation and interest costs of
a building built with other state dedicated funds shall be credited to the dedicated fund
which funded the original acquisition or construction. All other money received shall be
credited to the general services revolving fund.

new text begin (e) Lease of space in Andersen and Freeman buildings. new text end new text begin The commissioner may
lease space in the Elmer L. Andersen and Orville L. Freeman buildings to state agencies
and charge rent on the basis of space occupied. Money collected as rent under this
paragraph to fund future building repairs must be credited to a segregated account for each
building in the special revenue fund and is appropriated to the commissioner to make
the repairs. When the state acquires title to each building, the account for that building
must be abolished and any balance remaining in the account must be transferred to the
appropriate asset preservation and replacement account created under paragraph (d).
new text end

Sec. 21.

Minnesota Statutes 2006, section 16B.35, subdivision 1, is amended to read:

Subdivision 1.

Percent of appropriations for art.

An appropriation for the
construction or alteration of any state building may contain an amount not to exceed
deleted text begin the lesser of $100,000 or deleted text end one percent of the total appropriation for the building for the
acquisition of works of art, excluding landscaping, which may be an integral part of the
building or its grounds, attached to the building or grounds or capable of being displayed
in other state buildings. deleted text begin If the appropriation for works of art is limited by the $100,000
cap in this section, the appropriation for the construction or alteration of the building must
be reduced to reflect the reduced amount that will be spent on works of art. deleted text end Money used
for this purpose is available only for the acquisition of works of art to be exhibited in areas
of a building or its grounds accessible, on a regular basis, to members of the public. No
more than ten percent of the total amount available each fiscal year under this subdivision
may be used for administrative expenses, either by the commissioner of administration or
by any other entity to whom the commissioner delegates administrative authority. For the
purposes of this section "state building" means a building the construction or alteration of
which is paid for wholly or in part by the state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007. The repeal of the
$100,000 limit in this section applies to appropriations made before, on, or after that date.
new text end

Sec. 22.

new text begin [16B.97] GRANTS MANAGEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Grant agreement. new text end

new text begin (a) A grant agreement is a written instrument or
electronic document defining a legal relationship between a granting agency and a grantee
when the principal purpose of the relationship is to transfer cash or something of value
to the recipient to support a public purpose authorized by law instead of acquiring by
professional or technical contract, purchase, lease, or barter property or services for the
direct benefit or use of the granting agency.
new text end

new text begin (b) This section does not apply to capital project grants to political subdivisions as
defined by section 16A.86.
new text end

new text begin Subd. 2. new text end

new text begin Grants governance. new text end

new text begin The commissioner shall provide leadership and
direction for policy related to grants management in Minnesota in order to foster more
consistent, streamlined interaction between executive agencies, funders, and grantees that
will enhance access to grant opportunities and information and lead to greater program
accountability and transparency. The commissioner has the duties and powers stated in this
section. An executive agency must do what the commissioner requires under this section.
new text end

new text begin Subd. 3. new text end

new text begin Discretionary powers. new text end

new text begin The commissioner has the authority to:
new text end

new text begin (1) review grants management practices and propose policy and procedure
improvements to the governor, legislature, executive agencies, and the federal government;
new text end

new text begin (2) sponsor, support, and facilitate innovative and collaborative grants management
projects with public and private organizations;
new text end

new text begin (3) review, recommend, and implement alternative strategies for grants management;
new text end

new text begin (4) collect and disseminate information, issue reports relating to grants management,
and sponsor and conduct conferences and studies; and
new text end

new text begin (5) participate in conferences and other appropriate activities related to grants
management issues.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin (a) The commissioner shall:
new text end

new text begin (1) create general grants management policies and procedures that are applicable to
all executive agencies. The commissioner may approve exceptions to these policies and
procedures for particular grant programs. Exceptions shall expire or be renewed after five
years. Executive agencies shall retain management of individual grants programs;
new text end

new text begin (2) provide a central point of contact concerning statewide grants management
policies and procedures;
new text end

new text begin (3) serve as a resource to executive agencies in such areas as training, evaluation,
collaboration, and best practices in grants management;
new text end

new text begin (4) ensure grants management needs are considered in the development, upgrade,
and use of statewide administrative systems and leverage existing technology wherever
possible;
new text end

new text begin (5) oversee and approve future professional and technical service contracts and
other information technology spending related to executive agency grants management
activities;
new text end

new text begin (6) provide a central point of contact for comments about executive agencies
violating statewide grants governance policies and about fraud and waste in grants
processes;
new text end

new text begin (7) forward received comments to the appropriate agency for further action, and may
follow up as necessary;
new text end

new text begin (8) provide a single listing of all available executive agency competitive grant
opportunities and resulting grant recipients;
new text end

new text begin (9) selectively review development and implementation of executive agency grants,
policies, and practices; and
new text end

new text begin (10) selectively review executive agency compliance with best practices.
new text end

new text begin (b) The commissioner may determine that it is cost-effective for agencies to develop
and use shared grants management technology systems. This system would be governed
under section 16E.01, subdivision 3, paragraph (b).
new text end

Sec. 23.

new text begin [16B.98] GRANTS MANAGEMENT PROCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Limitation. new text end

new text begin As a condition of receiving a grant from an appropriation
of state funds, the recipient of the grant must agree to minimize administrative costs. The
granting agency is responsible for negotiating appropriate limits to these costs so that the
state derives the optimum benefit for grant funding.
new text end

new text begin Subd. 2. new text end

new text begin Ethical practices and conflict of interest. new text end

new text begin An employee of the executive
branch involved directly or indirectly in grants processes, at any level, is subject to the
code of ethics in section 43A.38.
new text end

new text begin Subd. 3. new text end

new text begin Conflict of interest. new text end

new text begin (a) The commissioner must develop policies
regarding code of ethics and conflict of interest designed to prevent conflicts of interest for
employees, committee members, or others involved in the recommendation, awarding,
and administration of grants. The policies must apply to employees who are directly or
indirectly in the grants process, which may include the following:
new text end

new text begin (1) developing request for proposals or evaluation criteria;
new text end

new text begin (2) drafting, recommending, awarding, amending, revising, or entering into grant
agreements;
new text end

new text begin (3) evaluating or monitoring performance; or
new text end

new text begin (4) authorizing payments.
new text end

new text begin (b) The policies must include:
new text end

new text begin (1) a process to make all parties to the grant aware of policies and laws relating to
conflict of interest, and training on how to avoid and address potential conflicts; and
new text end

new text begin (2) a process under which those who have a conflict of interest or a potential conflict
of interest must disclose the matter.
new text end

new text begin (c) If the employee, appointing authority, or commissioner determines that a conflict
of interest exists, the matter shall be assigned to another employee who does not have a
conflict of interest. If it is not possible to assign the matter to an employee who does not
have a conflict of interest, interested personnel shall be notified of the conflict and the
employee may proceed with the assignment.
new text end

new text begin Subd. 4. new text end

new text begin Reporting of violations. new text end

new text begin A state employee who discovers evidence
of violation of laws or rules governing grants is encouraged to report the violation or
suspected violation to the employee's supervisor, the commissioner or the commissioner's
designee, or the legislative auditor. The legislative auditor shall report to the Legislative
Audit Commission if there are multiple complaints about the same agency. The auditor's
report to the Legislative Audit Commission under this section must disclose only the
number and type of violations alleged. An employee making a good faith report under this
section has the protections provided for under section 181.932, prohibiting the employer
from discriminating against the employee.
new text end

new text begin Subd. 5. new text end

new text begin Creation and validity of grant agreements. new text end

new text begin (a) A grant agreement is
not valid and the state is not bound by the grant unless:
new text end

new text begin (1) the grant has been executed by the head of the agency or a delegate who is
party to the grant; and
new text end

new text begin (2) the accounting system shows an encumbrance for the amount of the grant in
accordance with policy approved by the commissioner.
new text end

new text begin (b) The combined grant agreement and amendments must not exceed five years
without specific, written approval by the commissioner according to established policy,
procedures, and standards, or unless the commissioner determines that a longer duration is
in the best interest of the state.
new text end

new text begin (c) A fully executed copy of the grant agreement with all amendments and other
required records relating to the grant must be kept on file at the granting agency for a time
equal to that required of grantees in subdivision 8.
new text end

new text begin (d) Grant agreements must comply with policies established by the commissioner
for minimum grant agreement standards and practices.
new text end

new text begin (e) The attorney general may periodically review and evaluate a sample of state
agency grants to ensure compliance with applicable laws.
new text end

new text begin Subd. 6. new text end

new text begin Grant administration. new text end

new text begin A granting agency shall diligently administer
and monitor any grant it has entered into.
new text end

new text begin Subd. 7. new text end

new text begin Grant payments. new text end

new text begin Payments to the grantee may not be issued until the
grant agreement is fully executed.
new text end

new text begin Subd. 8. new text end

new text begin Audit. new text end

new text begin (a) A grant agreement made by an executive agency must include an
audit clause that provides that the books, records, documents, and accounting procedures
and practices of the grantee or other party that are relevant to the grant or transaction are
subject to examination by the granting agency and either the legislative auditor or the state
auditor, as appropriate, for a minimum of six years from the grant agreement end date,
receipt and approval of all final reports, or the required period of time to satisfy all state
and program retention requirements, whichever is later. If a grant agreement does not
include an express audit clause, the audit authority under this subdivision is implied.
new text end

new text begin (b) If the granting agency is a local unit of government, and the governing body of
the local unit of government requests that the state auditor examine the books, records,
documents, and accounting procedures and practices of the grantee or other party
according to this subdivision, the granting agency shall be liable for the cost of the
examination. If the granting agency is a local unit of government, and the grantee or other
party requests that the state auditor examine all books, records, documents, and accounting
procedures and practices related to the grant, the grantee or other party that requested the
examination shall be liable for the cost of the examination.
new text end

new text begin Subd. 9. new text end

new text begin Authority of attorney general. new text end

new text begin The attorney general may pursue
remedies available by law to avoid the obligation of an agency to pay under a grant or to
recover payments made if activities under the grant are so unsatisfactory, incomplete, or
inconsistent that payment would involve unjust enrichment. The contrary opinion of the
granting agency does not affect the power of the attorney general under this subdivision.
new text end

new text begin Subd. 10. new text end

new text begin Grants with Indian tribes and bands. new text end

new text begin Notwithstanding any other law,
an agency may not require an Indian tribe or band to deny its sovereignty as a requirement
or condition of a grant with an agency.
new text end

Sec. 24.

Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Best and final offer. new text end

new text begin "Best and final offer" means an optional step in
the solicitation process in which responders are requested to improve their response by
methods including, but not limited to, the reduction of cost, clarification or modification of
the response, or the provision of additional information.
new text end

Sec. 25.

Minnesota Statutes 2006, section 16C.02, subdivision 4, is amended to read:

Subd. 4.

Best value.

"Best value" describes a result intended in the acquisition of all
goods and services. Price must be one of the evaluation criteria when acquiring goods
and services. Other evaluation criteria may include, but are not limited to, environmental
considerations, quality, and vendor performance. new text begin In achieving "best value" strategic
sourcing tools, including but not limited to best and final offers, negotiations, contract
consolidation, product standardization, and mandatory-use enterprise contracts shall be
used at the commissioner's discretion.
new text end

Sec. 26.

Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision
to read:

new text begin Subd. 6a. new text end

new text begin Enterprise procurement. new text end

new text begin "Enterprise procurement" means the process
undertaken by the commissioner to leverage economies of scale of multiple end users to
achieve cost savings and other favorable terms in contracts for goods and services.
new text end

Sec. 27.

Minnesota Statutes 2006, section 16C.02, subdivision 12, is amended to read:

Subd. 12.

Request for proposal or RFP.

"Request for proposal" or "RFP" means a
solicitation in which it is not advantageous to set forth all the actual, detailed requirements
at the time of solicitation and responses are deleted text begin subject to negotiation deleted text end new text begin negotiated to achieve
best value for the state new text end .

Sec. 28.

Minnesota Statutes 2006, section 16C.02, subdivision 14, is amended to read:

Subd. 14.

Response.

"Response" means the offer received from a vendor in
response to a solicitation. A response includes submissions commonly referred to as
"offers," "bids," "quotes," deleted text begin or deleted text end "proposals deleted text begin . deleted text end new text begin ," "best and final offers," or "negotiated offers. new text end "

Sec. 29.

Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision
to read:

new text begin Subd. 20. new text end

new text begin Strategic sourcing. new text end

new text begin "Strategic sourcing" means methods used to
analyze and reduce spending on goods and services, including but not limited to
spend analysis, product standardization, contract consolidation, negotiations, multiple
jurisdiction purchasing alliances, reverse and forward auctions, life-cycle costing, and
other techniques.
new text end

Sec. 30.

Minnesota Statutes 2006, section 16C.03, subdivision 2, is amended to read:

Subd. 2.

Rulemaking authority.

Subject to chapter 14, the commissioner may
adopt rules, consistent with this chapter and chapter 16B, relating to the following topics:

(1) new text begin procurement process including new text end solicitations and responses to solicitations, bid
security, vendor errors, opening of responses, award of contracts, tied bids, and award
protest process;

(2) contract performance and failure to perform;

(3) authority to debar or suspend vendors, and reinstatement of vendors;

(4) contract cancellation;

(5) procurement from rehabilitation facilities; and

(6) organizational conflicts of interest.

Sec. 31.

Minnesota Statutes 2006, section 16C.03, subdivision 4, is amended to read:

Subd. 4.

Contracting authority.

The commissioner shall conduct all contracting by,
for, and between agencies and perform all contract management and review functions for
contracts, except those functions specifically delegated to be performed by the contracting
agency, the attorney general, or otherwise provided for by law. new text begin The commissioner may
require that agency staff participate in the development of enterprise procurements
including the development of product standards, specifications and other requirements.
new text end

Sec. 32.

Minnesota Statutes 2006, section 16C.03, subdivision 8, is amended to read:

Subd. 8.

Policy and procedures.

The commissioner is authorized to issue policies,
procedures, and standards applicable to all acquisition activities by and for agencies. new text begin
Consistent with the authority specified in this chapter, the commissioner shall develop
and implement policies, procedures, and standards ensuring the optimal use of strategic
sourcing techniques.
new text end

Sec. 33.

Minnesota Statutes 2006, section 16C.03, subdivision 16, is amended to read:

Subd. 16.

Delegation of duties.

The commissioner may delegate duties imposed by
this chapter to the head of an agency and to any subordinate of the agency head. Delegated
duties shall be exercised in the name of the commissioner and under the commissioner's
direct supervision and control. A delegation of duties may include, but is not limited to,
allowing individuals within agencies to acquire goods, services, and utilities within dollar
limitations and for designated types of acquisitions. Delegation of contract management
and review functions must be filed with the secretary of state and may not, except with
respect to delegations within the Department of Administration, exceed two years in
duration. The commissioner may withdraw any delegation at the commissioner's sole
discretion. new text begin The commissioner may require an agency head or subordinate to accept
delegated responsibility to procure goods or services intended for the exclusive use of the
agency receiving the delegation.
new text end

Sec. 34.

new text begin [16C.046] WEB SITE WITH SEARCHABLE DATABASE ON STATE
CONTRACTS AND GRANTS.
new text end

new text begin (a) The commissioner of administration must maintain a Web site with a searchable
database providing the public with information on state contracts, including grant
contracts. The database must include the following information for each state contract
valued in excess of $25,000:
new text end

new text begin (1) the name and address of the entity receiving the contract;
new text end

new text begin (2) the name of the agency entering into the contract;
new text end

new text begin (3) whether the contract is:
new text end

new text begin (i) for goods;
new text end

new text begin (ii) for professional or technical services;
new text end

new text begin (iii) for services other than professional and technical services; or
new text end

new text begin (iv) a grant;
new text end

new text begin (4) a brief statement of the purpose of the contract or grant;
new text end

new text begin (5) the amount of the contract or grant and the fund from which this amount will be
paid; and
new text end

new text begin (6) the dollar value of state contracts, other than grants, the entity has received in each
fiscal year and the dollar value of state grants the entity has received in each fiscal year.
new text end

new text begin (b) Required information on a new contract or grant must be entered into the
database within 30 days of the time the contract is entered into.
new text end

new text begin (c) For purposes of this section, a "grant" is a contract between a state agency and
a recipient, the primary purpose of which is to transfer cash or a thing of value to the
recipient to support a public purpose. Grant does not include payments to units of local
government, payments to state employees, or payments made under laws providing for
assistance to individuals.
new text end

new text begin (d) The database must include information on grants and contracts entered into
beginning with fiscal year 2008 funds, and must retain that data for ten years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 35.

Minnesota Statutes 2006, section 16C.05, subdivision 1, is amended to read:

Subdivision 1.

Agency cooperation.

Agencies shall fully cooperate with the
commissioner in the management and review of state contracts new text begin and in the development
and implementation of strategic sourcing techniques new text end .

Sec. 36.

Minnesota Statutes 2006, section 16C.05, subdivision 2, is amended to read:

Subd. 2.

Creation and validity of contracts.

(a) A contract is not valid and the state
is not bound by it and no agency, without the prior written approval of the commissioner
granted pursuant to subdivision 2a, may authorize work to begin on it unless:

(1) it has first been executed by the head of the agency or a delegate who is a party
to the contract;

(2) it has been approved by the commissioner; and

(3) the accounting system shows an encumbrance for the amount of the contract
liability new text begin , except as allowed by policy approved by the commissioner and commissioner of
finance for routine, low-dollar procurements new text end .

(b) The combined contract and amendments must not exceed five years without
specific, written approval by the commissioner according to established policy, procedures,
and standards, or unless otherwise provided for by law. The term of the original contract
must not exceed two years unless the commissioner determines that a longer duration is
in the best interest of the state.

(c) Grants, interagency agreements, purchase orders, work orders, and annual plans
need not, in the discretion of the commissioner and attorney general, require the signature
of the commissioner and/or the attorney general. A signature is not required for work
orders and amendments to work orders related to Department of Transportation contracts.
Bond purchase agreements by the Minnesota Public Facilities Authority do not require
the approval of the commissioner.

(d) Amendments to contracts must entail tasks that are substantially similar to
those in the original contract or involve tasks that are so closely related to the original
contract that it would be impracticable for a different contractor to perform the work. The
commissioner or an agency official to whom the commissioner has delegated contracting
authority under section 16C.03, subdivision 16, must determine that an amendment would
serve the interest of the state better than a new contract and would cost no more.

(e) A fully executed copy of every contract, amendments to the contract, and
performance evaluations relating to the contract must be kept on file at the contracting
agency for a time equal to that specified for contract vendors and other parties in
subdivision 5.

(f) The attorney general must periodically review and evaluate a sample of state
agency contracts to ensure compliance with laws.

Sec. 37.

Minnesota Statutes 2006, section 16C.08, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Enterprise procurement. new text end

new text begin Notwithstanding section 15.061 or any
other law, the commissioner shall, to the fullest extent practicable, conduct enterprise
procurements that result in the establishment of professional or technical contracts for
use by multiple state agencies. The commissioner is authorized to mandate use of any
contract entered into as a result of an enterprise procurement process. Agencies shall fully
cooperate in the development and use of contracts entered into under this section.
new text end

Sec. 38.

Minnesota Statutes 2006, section 16C.08, subdivision 2, is amended to read:

Subd. 2.

Duties of contracting agency.

(a) Before an agency may seek approval of
a professional or technical services contract valued in excess of $5,000, it must provide
the following:

(1) a description of how the proposed contract or amendment is necessary and
reasonable to advance the statutory mission of the agency;

(2) a description of the agency's plan to notify firms or individuals who may be
available to perform the services called for in the solicitation; deleted text begin and
deleted text end

(3) a description of the performance measures or other tools that will be used to
monitor and evaluate contract performance deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) an explanation detailing, if applicable, why this procurement is being pursued
unilaterally by the agency and not as an enterprise procurement.
new text end

(b) In addition to paragraph (a), the agency must certify that:

(1) no current state employee is able and available to perform the services called
for by the contract;

(2) the normal competitive bidding mechanisms will not provide for adequate
performance of the services;

(3) reasonable efforts will be made to publicize the availability of the contract to
the public;

(4) the agency will develop and implement a written plan providing for the
assignment of specific agency personnel to manage the contract, including a monitoring
and liaison function, the periodic review of interim reports or other indications of past
performance, and the ultimate utilization of the final product of the services;

(5) the agency will not allow the contractor to begin work before the contract is fully
executed unless an exception under section 16C.05, subdivision 2a, has been granted by
the commissioner and funds are fully encumbered;

(6) the contract will not establish an employment relationship between the state or
the agency and any persons performing under the contract; deleted text begin and
deleted text end

(7) in the event the results of the contract work will be carried out or continued by
state employees upon completion of the contract, the contractor is required to include
state employees in development and training, to the extent necessary to ensure that after
completion of the contract, state employees can perform any ongoing work related to
the same function deleted text begin . deleted text end new text begin ; and
new text end

new text begin (8) the agency will not contract out its previously eliminated jobs for four years
without first considering the same former employees who are on the seniority unit layoff
list who meet the minimum qualifications determined by the agency.
new text end

(c) A contract establishes an employment relationship for purposes of paragraph (b),
clause (6), if, under federal laws governing the distinction between an employee and an
independent contractor, a person would be considered an employee.

Sec. 39.

Minnesota Statutes 2006, section 16C.08, subdivision 4, is amended to read:

Subd. 4.

Reports.

(a) The commissioner shall submit to the governor, the chairs of
the house Ways and Means and senate Finance Committees, and the Legislative Reference
Library a yearly listing of all contracts for professional or technical services executed.
The report must identify the contractor, contract amount, duration, and services to be
provided. The commissioner shall also issue yearly reports summarizing the contract
review activities of the department by fiscal year.

(b) The fiscal year report must be submitted by September 1 of each year and must:

(1) be sorted by agency and by contractor;

(2) show the aggregate value of contracts issued by each agency and issued to each
contractor;

(3) distinguish between contracts that are being issued for the first time and contracts
that are being extended;

(4) state the termination date of each contract;

(5) identify services by commodity code, including topics such as contracts for
training, contracts for research and opinions, and contracts for computer systems; and

(6) identify which contracts were awarded without following the solicitation process
in this chapter because it was determined that there was only a single source for the
services.

(c) Within 30 days of final completion of a contract over $50,000 covered by this
subdivision, the head of the agency entering into the contract must submit a one-page
report to the commissioner who must submit a copy to the Legislative Reference Library.
The report must:

(1) summarize the purpose of the contract, including why it was necessary to enter
into a contract;

(2) state the amount spent on the contract;

deleted text begin (3) be accompanied by the performance evaluation prepared according to subdivision
4a; and
deleted text end

deleted text begin (4) deleted text end new text begin (3) new text end if the contract was awarded without following the solicitation process in this
chapter because it was determined that there was only a single source for the services,
explain why the agency determined there was only a single source for the services deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) include a written performance evaluation of the work done under the contract.
The evaluation must include an appraisal of the contractor's timeliness, quality, cost, and
overall performance in meeting the terms and objectives of the contract. Contractors may
request copies of evaluations prepared under this subdivision and may respond in writing.
Contractor responses must be maintained with the contract file.
new text end

Sec. 40.

Minnesota Statutes 2006, section 16C.08, is amended by adding a subdivision
to read:

new text begin Subd. 4b. new text end

new text begin Limitations on actions. new text end

new text begin No action may be maintained by a contractor
against an employee or agency who discloses information about a current or former
contractor under subdivision 4, unless the contractor demonstrates by clear and convincing
evidence that:
new text end

new text begin (1) the information was false and defamatory;
new text end

new text begin (2) the employee or agency knew or should have known the information was false
and acted with malicious intent to injure the current or former contractor; and
new text end

new text begin (3) the information was acted upon in a manner that caused harm to the current or
former contractor.
new text end

Sec. 41.

new text begin [16C.086] CALL-CENTER.
new text end

new text begin An agency may not enter into a contract for operation of a call-center, or a contract
whose primary purpose is to provide similar services answering or responding to telephone
calls on behalf of an agency without determining if the service can be provided by state
employees, and the services must be provided at offices located in the United States. For
purposes of this section, "agency" includes the Minnesota State Colleges and Universities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
and applies to a contract entered into or renewed or otherwise extended after that date.
new text end

Sec. 42.

Minnesota Statutes 2006, section 16C.10, subdivision 7, is amended to read:

Subd. 7.

Reverse auction.

(a) For the purpose of this subdivision, "reverse auction"
means a purchasing process in which vendors compete to provide goods or deleted text begin computer deleted text end
services at the lowest selling price in an open and interactive environment. new text begin Reverse
auctions may not be utilized to procure engineering design services or architectural
services or to establish building and construction contracts under sections 16C.26 to
16C.29.
new text end

(b) The provisions of sections 13.591, subdivision 3, and 16C.06, subdivision 2,
do not apply when the commissioner determines that a reverse auction is the appropriate
purchasing process.

Sec. 43.

new text begin [16C.147] DOCUMENT IMAGING; USE OF PERSONS WITH
DEVELOPMENTAL DISABILITIES.
new text end

new text begin The commissioner shall promote the use of persons with developmental disabilities
to provide document imaging services for state and local government agencies.
new text end

Sec. 44.

new text begin [16C.251] BEST AND FINAL OFFER.
new text end

new text begin A "best and final offer" solicitation process may not be used for building and
construction contracts.
new text end

Sec. 45.

Minnesota Statutes 2006, section 43A.346, subdivision 1, is amended to read:

Subdivision 1.

Definition.

For purposes of this section, "state employee" means a
person currently occupying a civil service position in the executive new text begin or legislative new text end branch of
state government, the Minnesota State Retirement System, or the Office of the Legislative
Auditor, or a person employed by the Metropolitan Council.

Sec. 46.

Minnesota Statutes 2006, section 161.1419, subdivision 8, is amended to read:

Subd. 8.

Expiration.

The commission expires on June 30, deleted text begin 2007 deleted text end new text begin 2012 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 47.

Minnesota Statutes 2006, section 270B.14, is amended by adding a
subdivision to read:

new text begin Subd. 19. new text end

new text begin Disclosure to Department of Finance. new text end

new text begin The commissioner may disclose
to the commissioner of finance returns or return information necessary in order to prepare
a revenue forecast under section 16A.103.
new text end

Sec. 48.

Minnesota Statutes 2006, section 270C.03, subdivision 1, is amended to read:

Subdivision 1.

Powers and duties.

The commissioner shall have and exercise
the following powers and duties:

(1) administer and enforce the assessment and collection of taxes;

(2) make determinations, corrections, and assessments with respect to taxes,
including interest, additions to taxes, and assessable penalties;

(3) use statistical or other sampling techniques consistent with generally accepted
auditing standards in examining returns or records and making assessments;

(4) investigate the tax laws of other states and countries, and formulate and submit
to the legislature such legislation as the commissioner may deem expedient to prevent
evasions of state revenue laws and to secure just and equal taxation and improvement in
the system of state revenue laws;

(5) consult and confer with the governor upon the subject of taxation, the
administration of the laws in regard thereto, and the progress of the work of the
department, and furnish the governor, from time to time, such assistance and information
as the governor may require relating to tax matters;

(6) execute and administer any agreement with the secretary of the treasury or the
Bureau of Alcohol, Tobacco, Firearms, and Explosives in the Department of Justice of the
United States or a representative of another state regarding the exchange of information
and administration of the state revenue laws;

(7) require town, city, county, and other public officers to report information as to the
collection of taxes received from licenses and other sources, and such other information
as may be needful in the work of the commissioner, in such form as the commissioner
may prescribe;

(8) authorize the use of unmarked motor vehicles to conduct seizures or criminal
investigations pursuant to the commissioner's authority; deleted text begin and
deleted text end

(9) new text begin maintain toll-free telephone access for taxpayer assistance for calls from
locations within the state; and
new text end

new text begin (10) new text end exercise other powers and authority and perform other duties required of or
imposed upon the commissioner by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 49.

new text begin [270C.21] TAXPAYER ASSISTANCE GRANTS.
new text end

new text begin When the commissioner awards grants to nonprofit organizations to coordinate,
facilitate, encourage, and aid in the provision of taxpayer assistance services, the
commissioner must provide public notice of the grants in a timely manner so that the
grant process is completed and grants are awarded by October 1, in order for recipient
organizations to adequately plan expenditures for the filing season. At the time the
commissioner provides public notice, the commissioner must also notify nonprofit
organizations that received grants in the previous biennium.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 50.

Minnesota Statutes 2006, section 302A.821, subdivision 4, is amended to read:

Subd. 4.

Penalty; reinstatement.

(a) A corporation that has failed to file a
registration pursuant to the requirements of subdivision 2 must be dissolved by the
secretary of state as described in paragraph (b).

(b) If the corporation has not filed the registration deleted text begin for deleted text end deleted text begin two consecutive deleted text end new text begin during
any new text end calendar deleted text begin years deleted text end new text begin year new text end , the secretary of state must issue a certificate of administrative
dissolution and the certificate must be filed in the Office of the Secretary of State. deleted text begin The
secretary of state shall send notice to the corporation that the corporation has been
dissolved and that the corporation may be reinstated by filing a registration and a $25 fee.
The notice must be given by United States mail unless the company has indicated to the
secretary of state that they are willing to receive notice by electronic notification, in which
case the secretary of state may give notice by mail or the indicated means. The secretary
of state shall annually inform the attorney general and the commissioner of revenue of
the methods by which the names of corporations dissolved under this section during the
preceding year may be determined. deleted text end The secretary of state must deleted text begin also deleted text end make available in
an electronic format the names of the dissolved corporations. A corporation dissolved in
this manner is not entitled to the benefits of section 302A.781. The liability, if any, of the
shareholders of a corporation dissolved in this manner shall be determined and limited in
accordance with section 302A.557, except that the shareholders shall have no liability to
any director of the corporation under section 302A.559, subdivision 2.

(c) After administrative dissolution, filing a registration and the $25 fee with the
secretary of state:

(1) returns the corporation to good standing as of the date of the dissolution;

(2) validates contracts or other acts within the authority of the articles, and the
corporation is liable for those contracts or acts; and

(3) restores to the corporation all assets and rights of the corporation to the extent
they were held by the corporation before the dissolution occurred, except to the extent that
assets or rights were affected by acts occurring after the dissolution or sold or otherwise
distributed after that time.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 51.

Minnesota Statutes 2006, section 308A.995, subdivision 4, is amended to read:

Subd. 4.

Penalty; dissolution.

(a) A cooperative that has failed to file a registration
pursuant to the requirements of this section by December 31 of the calendar year for which
the registration was required must be dissolved by the secretary of state as described in
paragraph (b).

(b) If the cooperative has not filed the registration by December 31 of that calendar
year, the secretary of state must issue a certificate of involuntary dissolution, and the
certificate must be filed in the Office of the Secretary of State. deleted text begin The secretary of state must
annually inform the attorney general and the commissioner of revenue of the methods by
which the names of cooperatives dissolved under this section during the preceding year
may be determined. deleted text end The secretary of state must deleted text begin also deleted text end make available in an electronic
format the names of the dissolved cooperatives. A cooperative dissolved in this manner is
not entitled to the benefits of section 308A.981.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 52.

Minnesota Statutes 2006, section 308B.121, subdivision 4, is amended to read:

Subd. 4.

Penalty; dissolution.

(a) A cooperative that has failed to file a registration
under the requirements of this section must be dissolved by the secretary of state as
described in paragraph (b).

(b) If the cooperative has not filed the registration by December 31 of that calendar
year, the secretary of state must issue a certificate of involuntary dissolution and the
certificate must be filed in the Office of the Secretary of State. deleted text begin The secretary of state must
annually inform the attorney general and the commissioner of revenue of the methods by
which the names of cooperatives dissolved under this section during the preceding year
may be determined. The secretary of state must also make available in an electronic
format the names of the dissolved cooperatives. deleted text end A cooperative dissolved in this manner is
not entitled to the benefits of section 308B.971.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 53.

Minnesota Statutes 2006, section 308B.215, subdivision 2, is amended to read:

Subd. 2.

Filing.

The original articles and a designation of the cooperative's
registered office and agent deleted text begin , including a registration form under section 308B.121, deleted text end shall
be filed with the secretary of state. The fee for filing the articles with the secretary of
state is $60.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007.
new text end

Sec. 54.

new text begin [308B.903] NOTICE OF INTENT TO DISSOLVE.
new text end

new text begin Before a cooperative begins dissolution, a notice of intent to dissolve must be filed
with the secretary of state. The notice must contain:
new text end

new text begin (1) the name of the cooperative;
new text end

new text begin (2) the date and place of the members' meeting at which the resolution was
approved; and
new text end

new text begin (3) a statement that the requisite vote of the members approved the proposed
dissolution.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007.
new text end

Sec. 55.

Minnesota Statutes 2006, section 317A.823, subdivision 1, is amended to read:

Subdivision 1.

Annual registration.

(a) The secretary of state must send annually
to each corporation at the registered office of the corporation a postcard notice announcing
the need to file the annual registration and informing the corporation that the annual
registration may be filed online and that paper filings may also be made, and informing
the corporation that failing to file the annual registration will result in an administrative
dissolution of the corporation.

(b) deleted text begin Except for corporations to which paragraph (d) applies, deleted text end Each calendar year
beginning in the calendar year following the calendar year in which a corporation
incorporates, a corporation must file with the secretary of state by December 31 of each
calendar year a registration containing the information listed in paragraph (c).

(c) The registration must include:

(1) the name of the corporation;

(2) the address of its registered office;

(3) the name of its registered agent, if any; and

(4) the name and business address of the officer or other person exercising the
principal functions of president of the corporation.

deleted text begin (d) The timely filing of an annual financial report and audit or an annual financial
statement under section deleted text begin 69.051, subdivision 1 deleted text end or 1a, by a volunteer firefighter relief
association, as reflected in the notification by the state auditor under section deleted text begin 69.051,
subdivision 1c deleted text end , constitutes presentation of the corporate registration. The secretary of state
may reject the registration by the volunteer firefighter relief association. Rejection must
occur if the information provided to the state auditor does not match the information
in the records of the secretary of state. The volunteer firefighter relief association may
amend the articles of incorporation as provided in sections to so
that the information from the state auditor may be accepted for filing. The timely filing
of an annual financial report and audit or an annual financial statement under section
deleted text begin 69.051, subdivision 1 deleted text end or 1a, does not relieve the volunteer firefighter relief association
of the requirement to file amendments to the articles of incorporation directly with the
secretary of state.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007.
new text end

Sec. 56.

Minnesota Statutes 2006, section 321.0206, is amended to read:

321.0206 DELIVERY TO AND FILING OF RECORDS BY SECRETARY OF
STATE; EFFECTIVE TIME AND DATE.

(a) A record authorized or required to be delivered to the secretary of state for filing
under this chapter must be captioned to describe the record's purpose, be in a medium
permitted by the secretary of state, and be delivered to the secretary of state. Unless the
secretary of state determines that a record does not comply with the filing requirements
of this chapter, and if the appropriate filing fees have been paid, the secretary of state
shall file the record and:

(1) for a statement of dissociation, send:

(A) a copy of the filed statement to the person which the statement indicates has
dissociated as a general partner; and

(B) a copy of the filed statement to the limited partnership;

(2) for a statement of withdrawal, send:

(A) a copy of the filed statement to the person on whose behalf the record was
filed; and

(B) if the statement refers to an existing limited partnership, a copy of the filed
statement to the limited partnership; and

(3) for all other records, send a copy of the filed record to the person on whose
behalf the record was filed.

(b) Upon request and payment of a fee, the secretary of state shall send to the
requester a certified copy of the requested record.

(c) Except as otherwise provided in sections 321.0116 and 321.0207, a record
delivered to the secretary of state for filing under this chapter may specify an effective
time and a delayed effective date. Except as otherwise provided in this chapter, a record
filed by the secretary of state is effective:

(1) if the record does not specify an effective time and does not specify a delayed
effective date, on the date and at the time the record is filed as evidenced by the secretary
of state's endorsement of the date and time on the record;

(2) if the record specifies an effective time but not a delayed effective date, on the
date the record is filed at the time specified in the record;

(3) if the record specifies a delayed effective date but not an effective time, at 12:01
a.m. on the earlier of:

(A) the specified date; or

(B) the 30th day after the record is filed; or

(4) if the record specifies an effective time and a delayed effective date, at the
specified time on the earlier of:

(A) the specified date; or

(B) the 30th day after the record is filed.

(d) The appropriate fees for filings under this chapter are:

(1) for filing a certificate of limited partnership, $100;

(2) for filing an amended certificate of limited partnership, $50;

(3) for filing any other record new text begin , other than the annual report required by section
321.0210, for which no fee must be charged, new text end required or permitted to be delivered for
filing, $35;

(4) for filing a certificate requesting authority to transact business in Minnesota as a
foreign limited partnership, $85;

(5) for filing an application of reinstatement, $25; deleted text begin and
deleted text end

(6) new text begin for filing a name reservation for a foreign limited partnership name, $35; and
new text end

new text begin (7) new text end for filing any other record new text begin , other than the annual report required by section
321.0210, for which no fee must be charged, new text end required or permitted to be delivered for
filing on a foreign limited partnership authorized to transact business in Minnesota, $50.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 57.

Minnesota Statutes 2006, section 321.0210, is amended to read:

321.0210 ANNUAL REPORT FOR SECRETARY OF STATE.

(a) Subject to subsection (b):

(1) in each calendar year following the calendar year in which a limited partnership
becomes subject to this chapter, the limited partnership must deliver to the secretary of
state for filing an annual registration containing the information required by subsection
(c); and

(2) in each calendar year following the calendar year in which there is first on file
with the secretary of state a certificate of authority under section 321.0904 pertaining to a
foreign limited partnership, the foreign limited partnership must deliver to the secretary of
state for filing an annual registration containing the information required by subsection (c).

(b) A limited partnership's obligation under subsection (a) ends if the limited
partnership delivers to the secretary of state for filing a statement of termination under
section 321.0203 and the statement becomes effective under section 321.0206. A foreign
limited partnership's obligation under subsection (a) ends if the secretary of state issues
and files a certificate of revocation under section 321.0906 or if the foreign limited
partnership delivers to the secretary of state for filing a notice of cancellation under
section 321.0907(a) and that notice takes effect under section 321.0206. If a foreign
limited partnership's obligations under subsection (a) end and later the secretary of state
files, pursuant to section 321.0904, a new certificate of authority pertaining to that foreign
limited partnership, subsection (a)(2), again applies to the foreign limited partnership and,
for the purposes of subsection (a)(2), the calendar year of the new filing is treated as the
calendar year in which a certificate of authority is first on file with the secretary of state.

(c) The annual registration must contain:

(1) the name of the limited partnership or foreign limited partnership;

(2) the address of its designated office and the name and street and mailing address
of its agent for service of process in Minnesota new text begin and, if the agent is not an individual, the
name, street and mailing address, and telephone number of an individual who may be
contacted for purposes other than service of process with respect to the limited partnership new text end ;

(3) in the case of a limited partnership, the street and mailing address of its principal
office; and

(4) in the case of a foreign limited partnership, the name of the state or other
jurisdiction under whose law the foreign limited partnership is formed and any alternate
name adopted under section 321.0905(a).

(d) The secretary of state shall:

(1) administratively dissolve under section 321.0809 a limited partnership that has
failed to file a registration pursuant to subsection (a); and

(2) revoke under section 321.0906 the certificate of authority of a foreign limited
partnership that has failed to file a registration pursuant to subsection (a).

Sec. 58.

new text begin [321.0909] NAME CHANGES FILED IN HOME STATE.
new text end

new text begin A foreign limited partnership shall notify the secretary of state of any changes to the
partnership name filed with the state of formation by filing a certificate from the state of
formation certifying to the change of name.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007.
new text end

Sec. 59.

Minnesota Statutes 2006, section 323A.1003, is amended to read:

323A.1003 ANNUAL REGISTRATION.

(a) Each calendar year beginning in the calendar year following the calendar year
in which a partnership files a statement of qualification or in which a foreign partnership
becomes authorized to transact business in this state, the secretary of state must mail by
first class mail an annual registration form to the street address of the partnership's chief
executive office, if located in Minnesota, the office in this state, if the chief executive
office is not located in Minnesota, or address of the registered agent of the partnership
as shown on the records of the secretary of state when the chief executive office is not
located in Minnesota and no other Minnesota office exists. The form must include the
following notice:

"NOTICE: Failure to file this form by December 31 of this year will result in
the revocation of the statement of qualification of this limited liability partnership
without further notice from the secretary of state pursuant to Minnesota Statutes, section
323A.1003, subsection (d)."

(b) A limited liability partnership, and a foreign limited liability partnership
authorized to transact business in this state, shall file an annual registration in the office
of the secretary of state which contains:

(1) the name of the limited liability partnership and the state or other jurisdiction
under whose laws the foreign limited liability partnership is formed;

(2) the street address, including the zip code, of the partnership's chief executive
office and, if different, the street address, including the zip code, of an office of the
partnership in this state, if any; deleted text begin and
deleted text end

(3) if the partnership does not have an office in this state, the name and street address,
including the zip code, of the partnership's current agent for service of process new text begin ; and
new text end

new text begin (4) if the agent for service of process under clause (3) is not an individual, the name,
street address, and telephone number of an individual who may be contacted for purposes
other than service of process with respect to the limited liability partnership new text end .

(c) An annual registration must be filed once each calendar year beginning in the
year following the calendar year in which a partnership files a statement of qualification or
a foreign partnership becomes authorized to transact business in this state.

(d) The secretary of state must revoke the statement of qualification of a partnership
that fails to file an annual registration when due or pay the required filing fee. The
secretary of state must issue a certificate of revocation which must be filed in the office
of the secretary of state. The secretary of state must also make available in an electronic
format the names of the revoked limited liability companies.

(e) A revocation under subsection (d) only affects a partnership's status as a limited
liability partnership and is not an event of dissolution of the partnership.

(f) A partnership whose statement of qualification has been revoked may apply to
the secretary of state for reinstatement within one year after the effective date of the
revocation. A partnership must file an annual registration to apply for reinstatement and
pay a reinstatement fee of $135.

(g) A reinstatement under subsection (f) relates back to and takes effect as of
the effective date of the revocation, and the partnership's status as a limited liability
partnership continues as if the revocation had never occurred.

Sec. 60.

Minnesota Statutes 2006, section 336.1-110, is amended to read:

336.1-110 UNIFORM COMMERCIAL CODE ACCOUNT.

The Uniform Commercial Code account is established as an account in the state
treasury. Fees that are not expressly set by statute but are charged by the secretary of state
to offset the costs of providing a service under this chapter must be deposited in the state
treasury and credited to the Uniform Commercial Code account.

Fees that are not expressly set by statute but are charged by the secretary of state
to offset the costs of providing information contained in the computerized records
maintained by the secretary of state must be deposited in the state treasury and credited to
the Uniform Commercial Code account.

Money in the Uniform Commercial Code account is continuously appropriated to the
secretary of state to implement and maintain the central filing system under this chapter new text begin ,
to provide, improve, and expand other online or remote lien and business entity filing,
retrieval, and payment method services provided by the secretary of state, new text end and to provide
electronic access to other computerized records maintained by the secretary of state.

Sec. 61.

Minnesota Statutes 2006, section 336.9-516, is amended to read:

336.9-516 WHAT CONSTITUTES FILING; EFFECTIVENESS OF FILING.

(a) What constitutes filing. Except as otherwise provided in subsection (b),
communication of a record to a filing office and tender of the filing fee or acceptance of
the record by the filing office constitutes filing.

(b) Refusal to accept record; filing does not occur. Filing does not occur with
respect to a record that a filing office refuses to accept because:

(1) the record is not communicated by a method or medium of communication
authorized by the filing office new text begin . For purposes of filing office authorization, transmission of
records using the Extensible Markup Language (XML) format is authorized by the filing
office after the later of July 1, 2007, or the determination of the secretary of state that the
central filing system is capable of receiving and processing these records new text end ;

(2) an amount equal to or greater than the applicable filing fee is not tendered;

(3) the filing office is unable to index the record because:

(A) in the case of an initial financing statement, the record does not provide a name
for the debtor;

(B) in the case of an amendment or correction statement, the record:

(i) does not identify the initial financing statement as required by section 336.9-512
or 336.9-518, as applicable; or

(ii) identifies an initial financing statement whose effectiveness has lapsed under
section 336.9-515;

(C) in the case of an initial financing statement that provides the name of a debtor
identified as an individual or an amendment that provides a name of a debtor identified as
an individual which was not previously provided in the financing statement to which the
record relates, the record does not identify the debtor's last name; or

(D) in the case of a record filed or recorded in the filing office described in section
336.9-501(a)(1), the record does not provide a sufficient description of the real property
to which it relates;

(4) in the case of an initial financing statement or an amendment that adds a secured
party of record, the record does not provide a name and mailing address for the secured
party of record;

(5) in the case of an initial financing statement or an amendment that provides a
name of a debtor which was not previously provided in the financing statement to which
the amendment relates, the record does not:

(A) provide a mailing address for the debtor;

(B) indicate whether the debtor is an individual or an organization; or

(C) if the financing statement indicates that the debtor is an organization, provide:

(i) a type of organization for the debtor;

(ii) a jurisdiction of organization for the debtor; or

(iii) an organizational identification number for the debtor or indicate that the debtor
has none;

(6) in the case of an assignment reflected in an initial financing statement under
section 336.9-514(a) or an amendment filed under section 336.9-514(b), the record does
not provide a name and mailing address for the assignee; or

(7) in the case of a continuation statement, the record is not filed within the
six-month period prescribed by section 336.9-515(d).

(c) Rules applicable to subsection (b). For purposes of subsection (b):

(1) a record does not provide information if the filing office is unable to read or
decipher the information; and

(2) a record that does not indicate that it is an amendment or identify an initial
financing statement to which it relates, as required by section 336.9-512, 336.9-514, or
336.9-518, is an initial financing statement.

(d) Refusal to accept record; record effective as filed record. A record that is
communicated to the filing office with tender of the filing fee, but which the filing office
refuses to accept for a reason other than one set forth in subsection (b), is effective as a
filed record except as against a purchaser of the collateral which gives value in reasonable
reliance upon the absence of the record from the files.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007.
new text end

Sec. 62.

Minnesota Statutes 2006, section 336.9-525, is amended to read:

336.9-525 FEES.

(a) Initial financing statement or other record: general rule. Except as otherwise
provided in subsection (d), the fee for filing and indexing a record under this part deleted text begin delivered
on paper deleted text end is $20 deleted text begin and for a record delivered by any electronic means is $15 deleted text end . new text begin $5 of the
fee collected for each filing made online must be deposited in the uniform commercial
code account. new text end

(b) Number of names. The number of names required to be indexed does not
affect the amount of the fee in subsection (a).

(c) Response to information request. The fee for responding to a request for
information from the filing office, including for issuing a certificate showing whether there
is on file any financing statement naming a particular debtor, deleted text begin delivered on paper deleted text end is $20
deleted text begin and for a record delivered by any electronic means is $15 deleted text end . new text begin $5 of the fee collected for each
request delivered online must be deposited in the uniform commercial code account. new text end

(d) Record of mortgage. This section does not require a fee with respect to a record
of a mortgage which is effective as a financing statement filed as a fixture filing or as a
financing statement covering as-extracted collateral or timber to be cut under section
336.9-502(c). However, the recording and satisfaction fees that otherwise would be
applicable to the record of the mortgage apply.

Sec. 63.

Minnesota Statutes 2006, section 358.41, is amended to read:

358.41 DEFINITIONS.

As used in sections 358.41 to 358.49:

(1) "Notarial act" means any act that a notary public of this state is authorized to
perform, and includes taking an acknowledgment, administering an oath or affirmation,
taking a verification upon oath or affirmation, witnessing or attesting a signature, certifying
or attesting a copy, and noting a protest of a negotiable instrument. A notary public may
perform a notarial act by electronic means.

(2) "Acknowledgment" means a declaration by a person that the person has executed
an instrument or electronic record for the purposes stated therein and, if the instrument
or electronic record is executed in a representative capacity, that the person signed
the instrument with proper authority and executed it as the act of the person or entity
represented and identified therein.

(3) "Verification upon oath or affirmation" means a declaration that a statement is
true made by a person upon oath or affirmation.

(4) "In a representative capacity" means:

(i) for and on behalf of a corporation, partnership, new text begin limited liability company, new text end trust, or
other entity, as an authorized officer, agent, partner, trustee, or other representative;

(ii) as a public officer, personal representative, guardian, or other representative,
in the capacity recited in the instrument;

(iii) as an attorney in fact for a principal; or

(iv) in any other capacity as an authorized representative of another.

(5) "Notarial officer" means a notary public or other officer authorized to perform
notarial acts.

(6) "Electronic signature" means an electronic sound, symbol, or process attached
to or logically associated with a record and executed or adopted by a person with the
intent to sign the record.

(7) "Electronic record" means a record created, generated, sent, communicated,
received, or stored by electronic means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007.
new text end

Sec. 64.

Minnesota Statutes 2006, section 358.42, is amended to read:

358.42 NOTARIAL ACTS.

(a) In taking an acknowledgment, the notarial officer must determine, either from
personal knowledge or from satisfactory evidence, that the person appearing before the
officer and making the acknowledgment is the person whose true signature is on the
instrument or electronic record.

(b) In taking a verification upon oath or affirmation, the notarial officer must
determine, either from personal knowledge or from satisfactory evidence, that the person
appearing before the officer and making the verification is the person whose true signature
is new text begin made in the presence of the officer new text end on the statement verified.

(c) In witnessing or attesting a signature the notarial officer must determine, either
from personal knowledge or from satisfactory evidence, that the signature is that of the
person appearing before the officer and named therein. new text begin When witnessing or attesting a
signature, the officer must be present when the signature is made.
new text end

(d) In certifying or attesting a copy of a document, electronic record, or other item,
the notarial officer must determine that the proffered copy is a full, true, and accurate
transcription or reproduction of that which was copied.

(e) In making or noting a protest of a negotiable instrument or electronic record the
notarial officer must determine the matters set forth in section 336.3-505.

(f) A notarial officer has satisfactory evidence that a person is the person whose true
signature is on a document or electronic record if that person (i) is personally known to
the notarial officer, (ii) is identified upon the oath or affirmation of a credible witness
personally known to the notarial officer, or (iii) is identified on the basis of identification
documents.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007.
new text end

Sec. 65.

Minnesota Statutes 2006, section 358.50, is amended to read:

358.50 EFFECT OF ACKNOWLEDGMENT.

An acknowledgment made in a representative capacity for and on behalf of a
corporation, partnership, new text begin limited liability company, new text end trust, or other entity and certified
substantially in the form prescribed in this chapter is prima facie evidence that the
instrument or electronic record was executed and delivered with proper authority.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007.
new text end

Sec. 66.

Minnesota Statutes 2006, section 359.085, subdivision 2, is amended to read:

Subd. 2.

Verifications.

In taking a verification upon oath or affirmation, the notarial
officer must determine, either from personal knowledge or from satisfactory evidence, that
the person appearing before the officer and making the verification is the person whose
true signature is new text begin made in the presence of the officer new text end on the statement verified.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007.
new text end

Sec. 67.

Minnesota Statutes 2006, section 359.085, subdivision 3, is amended to read:

Subd. 3.

Witnessing or attesting signatures.

In witnessing or attesting a signature,
the notarial officer must determine, either from personal knowledge or from satisfactory
evidence, that the signature is that of the person appearing before the officer and named in
the document or electronic record. new text begin When witnessing or attesting a signature, the officer
must be present when the signature is made.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007.
new text end

Sec. 68.

Minnesota Statutes 2006, section 477A.014, subdivision 4, is amended to read:

Subd. 4.

Costs.

The director of the Office of Strategic and Long-Range Planning
shall annually bill the commissioner of revenue for one-half of the costs incurred by the
state demographer in the preparation of materials required by section 4A.02. The state
auditor shall bill the commissioner of revenue for the costs of best practices reviews
and the services provided by the Government Information Division and the parts of the
constitutional office that are related to the government information function, new text begin and for
the services provided by the Tax Increment Financing Investment and Finance Division
required by section 469.3201, new text end not to exceed deleted text begin $217,000 deleted text end new text begin $614,000 new text end each fiscal year. The
commissioner of administration shall bill the commissioner of revenue for the costs of
the local government records program and the intergovernmental information systems
activity, not to exceed $205,800 each fiscal year. The commissioner of employee relations
shall bill the commissioner of revenue for the costs of administering the local government
pay equity function, not to exceed $55,000 each fiscal year.

Sec. 69.

Minnesota Statutes 2006, section 491A.02, subdivision 4, is amended to read:

Subd. 4.

Representation.

(a) A corporation, partnership, limited liability company,
sole proprietorship, or association may be represented in conciliation court by an officer,
manager, or partner or an agent in the case of a condominium, cooperative, or townhouse
association, or may appoint a natural person who is an employee or commercial property
manager to appear on its behalf or settle a claim in conciliation court. The state or a
political subdivision of the state may be represented in conciliation court by an employee
of the pertinent governmental unit without a written authorization. new text begin The state also may be
represented in conciliation court by an employee of the Division of Risk Management of
the Department of Administration without a written authorization. new text end Representation under
this subdivision does not constitute the practice of law for purposes of section 481.02,
subdivision 8. In the case of an officer, employee, commercial property manager, or
agent of a condominium, cooperative, or townhouse association, an authorized power
of attorney, corporate authorization resolution, corporate bylaw, or other evidence of
authority acceptable to the court must be filed with the claim or presented at the hearing.
This subdivision also applies to appearances in district court by a corporation or limited
liability company with five or fewer shareholders or members and to any condominium,
cooperative, or townhouse association, if the action was removed from conciliation court.

(b) "Commercial property manager" means a corporation, partnership, or limited
liability company or its employees who are hired by the owner of commercial real
estate to perform a broad range of administrative duties at the property including tenant
relations matters, leasing, repairs, maintenance, the negotiation and resolution of tenant
disputes, and related matters. In order to appear in conciliation court, a property manager's
employees must possess a real estate license under section 82.20 and be authorized by the
owner of the property to settle all disputes with tenants and others within the jurisdictional
limits of conciliation court.

(c) A commercial property manager who is appointed to settle a claim in conciliation
court may not charge or collect a separate fee for services rendered under paragraph (a).

Sec. 70.

Minnesota Statutes 2006, section 507.24, subdivision 2, is amended to read:

Subd. 2.

Original signatures required.

(a) Unless otherwise provided by law, an
instrument affecting real estate that is to be recorded as provided in this section or other
applicable law must contain the original signatures of the parties who execute it and of the
notary public or other officer taking an acknowledgment. However, a financing statement
that is recorded as a filing pursuant to section 336.9-502(b) need not contain: (1) the
signatures of the debtor or the secured party; or (2) an acknowledgment.

(b) new text begin (1) new text end Any electronic instruments, including signatures and seals, affecting real
estate may only be recorded as part of a pilot project for the electronic filing of real
estate documents implemented by the task force created in Laws 2000, chapter 391, or
by the Electronic Real Estate Recording Task Force created under section 507.094. new text begin The
Electronic Real Estate Recording Task Force created under section 507.094 may amend
standards set by the task force created in Laws 2000, chapter 391, and may set new or
additional standards and establish pilot projects to the full extent permitted in section
507.094, subdivision 2, paragraph (b). Documents recorded in conformity with those
standards and in those pilot projects are deemed to meet the requirements of this section.
new text end

new text begin (2)(i) new text end A county that participated in the pilot project for the electronic filing of real
estate documents under the task force created in Laws 2000, chapter 391, may continue to
record or file documents electronically, if:

deleted text begin (1) deleted text end new text begin (A) new text end the county complies with standards adopted by the task force; and

deleted text begin (2) deleted text end new text begin (B) new text end the county uses software that was validated by the task force.

new text begin (ii) new text end A county that did not participate in the pilot project may record or file a real
estate document electronically, if:

deleted text begin (i) deleted text end new text begin (A) new text end the document to be recorded or filed is of a type included in the pilot project
for the electronic filing of real estate documents under the task force created in Laws
2000, chapter 391;

deleted text begin (ii) deleted text end new text begin (B) new text end the county complies with the standards adopted by the task force;

deleted text begin (iii) deleted text end new text begin (C) new text end the county uses software that was validated by the task force; and

deleted text begin (iv) deleted text end new text begin (D) new text end the task force created under section 507.094, votes to accept a written
certification of compliance with paragraph (b), clause (2), of this section by the county
board and county recorder of the county to implement electronic filing under this section.

(c) Notices filed pursuant to section 168A.141, subdivisions 1 and 3, need not
contain an acknowledgment.

Sec. 71.

Minnesota Statutes 2006, section 517.08, subdivision 1b, is amended to read:

Subd. 1b.

Term of license; fee; premarital education.

(a) The local registrar
shall examine upon oath the party applying for a license relative to the legality of the
contemplated marriage. If at the expiration of a five-day period, on being satisfied that
there is no legal impediment to it, including the restriction contained in section 259.13, the
local registrar shall issue the license, containing the full names of the parties before and
after marriage, and county and state of residence, with the county seal attached, and make a
record of the date of issuance. The license shall be valid for a period of six months. In case
of emergency or extraordinary circumstances, a judge of the district court of the county in
which the application is made, may authorize the license to be issued at any time before
the expiration of the five days. Except as provided in paragraph (b), the local registrar shall
collect from the applicant a fee of deleted text begin $100 deleted text end new text begin $110 new text end for administering the oath, issuing, recording,
and filing all papers required, and preparing and transmitting to the state registrar of vital
statistics the reports of marriage required by this section. If the license should not be used
within the period of six months due to illness or other extenuating circumstances, it may
be surrendered to the local registrar for cancellation, and in that case a new license shall
issue upon request of the parties of the original license without fee. A local registrar who
knowingly issues or signs a marriage license in any manner other than as provided in this
section shall pay to the parties aggrieved an amount not to exceed $1,000.

(b) The marriage license fee for parties who have completed at least 12 hours of
premarital education is deleted text begin $30 deleted text end new text begin $40 new text end . In order to qualify for the reduced new text begin license new text end fee, the
parties must submit new text begin at the time of applying for the marriage license new text end a signed and dated
statement from the person who provided the premarital education confirming that it was
received. The premarital education must be provided by a licensed or ordained minister
or the minister's designee, a person authorized to solemnize marriages under section
517.18, or a person authorized to practice marriage and family therapy under section
148B.33. The education must include the use of a premarital inventory and the teaching of
communication and conflict management skills.

(c) The statement from the person who provided the premarital education under
paragraph (b) must be in the following form:

"I, (name of educator), confirm that (names of both parties) received at least 12
hours of premarital education that included the use of a premarital inventory and the
teaching of communication and conflict management skills. I am a licensed or ordained
minister, a person authorized to solemnize marriages under Minnesota Statutes, section
517.18, or a person licensed to practice marriage and family therapy under Minnesota
Statutes, section 148B.33."

The names of the parties in the educator's statement must be identical to the legal
names of the parties as they appear in the marriage license application. Notwithstanding
section 138.17, the educator's statement must be retained for seven years, after which
time it may be destroyed.

(d) If section 259.13 applies to the request for a marriage license, the local registrar
shall grant the marriage license without the requested name change. Alternatively, the local
registrar may delay the granting of the marriage license until the party with the conviction:

(1) certifies under oath that 30 days have passed since service of the notice for a
name change upon the prosecuting authority and, if applicable, the attorney general and no
objection has been filed under section 259.13; or

(2) provides a certified copy of the court order granting it. The parties seeking the
marriage license shall have the right to choose to have the license granted without the
name change or to delay its granting pending further action on the name change request.

Sec. 72.

Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:

Subd. 1c.

Disposition of license fee.

(a) Of the marriage license fee collected
pursuant to subdivision 1b, paragraph (a), deleted text begin $15 deleted text end new text begin $25 new text end must be retained by the county. The
local registrar must pay $85 to the commissioner of finance to be deposited as follows:

(1) $50 in the general fund;

(2) $3 in the special revenue fund to be appropriated to the commissioner of
education for parenting time centers under section 119A.37;

(3) $2 in the special revenue fund to be appropriated to the commissioner of health
for developing and implementing the MN ENABL program under section 145.9255;

(4) $25 in the special revenue fund is appropriated to the commissioner of
employment and economic development for the displaced homemaker program under
section 116L.96; and

(5) $5 in the special revenue fund is appropriated to the commissioner of human
services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under
section 256.742.

(b) Of the deleted text begin $30 deleted text end new text begin $40 new text end fee under subdivision 1b, paragraph (b), deleted text begin $15 deleted text end new text begin $25 new text end must be retained
by the county. The local registrar must pay $15 to the commissioner of finance to be
deposited as follows:

(1) $5 as provided in paragraph (a), clauses (2) and (3); and

(2) $10 in the special revenue fund is appropriated to the commissioner of
employment and economic development for the displaced homemaker program under
section 116L.96.

(c) The increase in the marriage license fee under paragraph (a) provided for in Laws
2004, chapter 273, and disbursement of the increase in that fee to the special fund for the
Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a),
clause (5), is contingent upon the receipt of federal funding under United States Code, title
42, section 1315, for purposes of the initiative.

Sec. 73.

Laws 2005, chapter 156, article 2, section 45, is amended to read:

Sec. 45. SALE OF STATE LAND.

Subdivision 1.

State land sales.

The commissioner of administration shall
coordinate with the head of each department or agency having control of state-owned land
to identify and sell at least $6,440,000 of state-owned land. Sales should be completed
according to law and as provided in this section as soon as practicable but no later than
June 30, deleted text begin 2007 deleted text end new text begin 2009 new text end . Notwithstanding Minnesota Statutes, sections 16B.281 and 16B.282,
94.09 and 94.10, or any other law to the contrary, the commissioner may offer land
for public sale by only providing notice of lands or an offer of sale of lands to state
departments or agencies, the University of Minnesota, cities, counties, towns, school
districts, or other public entities.

Subd. 2.

Anticipated savings.

Notwithstanding Minnesota Statutes, section
94.16, subdivision 3, or other law to the contrary, the amount of the proceeds from the
sale of land under this section that exceeds the actual expenses of selling the land must
be deposited in the general fund, except as otherwise provided by the commissioner of
finance. Notwithstanding Minnesota Statutes, section 94.11 or 16B.283, the commissioner
of finance may establish the timing of payments for land purchased under this section. If
the total of all money deposited into the general fund from the proceeds of the sale of land
under this section is anticipated to be less than $6,440,000, the governor must allocate the
amount of the difference as reductions to general fund operating expenditures for other
executive agencies for the biennium ending June 30, deleted text begin 2007 deleted text end new text begin 2009 new text end .

Subd. 3.

Sale of state lands revolving loan fund.

$290,000 is appropriated from
the general fund in fiscal year 2006 to the commissioner of administration for purposes
of paying the actual expenses of selling state-owned lands to achieve the anticipated
savings required in this section. From the gross proceeds of land sales under this section,
the commissioner of administration must cancel the amount of the appropriation in this
subdivision to the general fund by June 30, deleted text begin 2007 deleted text end new text begin 2009 new text end .

Sec. 74.

Laws 2006, chapter 253, section 22, subdivision 1, is amended to read:

Subdivision 1.

Genetic information; work group.

(a) The commissioner must
create a work group to develop principles for public policy on the use of genetic
information. The work group must include representatives of state government, including
the judicial branch, local government, prosecutors, public defenders, the American Civil
Liberties Union - Minnesota, the Citizens Council on Health Care, the University of
Minnesota Center on Bioethics, the Minnesota Medical Association, the Mayo Clinic
and Foundation, the March of Dimes, and representatives of employers, researchers,
epidemiologists, laboratories, and insurance companies.

(b) The commissioner of administration and the work group must conduct reviews
of the topics in paragraphs (c) to (f), in light of the issues raised in the report on treatment
of genetic information under state law required by Laws 2005, chapter 163, section 87.
The commissioner must report the results, including any recommendations for legislative
changes, to the chairs of the house Civil Law Committee and the senate Judiciary
Committee and the ranking minority members of those committees by January 15, deleted text begin 2008 deleted text end new text begin
2009 new text end .

(c) The commissioner and the work group must determine whether changes are
needed in Minnesota Statutes, section 144.69, dealing with collection of information
from cancer patients and their relatives.

(d) The commissioner and the work group must make recommendations whether
all relatives affected by a formal three-generation pedigree created by the Department of
Health should be able to access the entire data set, rather than only allowing individuals
access to the data of which they are the subject.

(e) The commissioner and the work group must identify, and may make
recommendations among, options for resolving questions of secondary uses of genetic
information.

(f) The commissioner and the work group must make recommendations whether
legislative changes are needed regarding access to DNA test results and the specimens
used to create the test results held by the Bureau of Criminal Apprehension as part of
a criminal investigation.

Sec. 75.

Laws 2006, chapter 282, article 14, section 5, is amended to read:

Sec. 5. OFFICE OF ADMINISTRATIVE HEARINGS

320,000

From the workers' compensation fund for
costs associated with the relocation of
offices to St. Paul. The commissioner
of administration shall take all steps as
necessary to complete the renovation of
the Stassen Building for these purposes by
January 1, 2008. Minnesota Statutes, section
16B.33, subdivision 3, does not apply if
the estimated cost of construction exceeds
$2,000,000. This is a onetime appropriation. new text begin
This appropriation is available until spent.
new text end

Beginning in fiscal year 2009 and for all
fiscal years thereafter, the appropriation base
for the workers' compensation fund for the
Office of Administrative Hearings is reduced
by $297,000 to reflect savings in rent costs
due to the relocation of offices to St. Paul.

new text begin EFFECTIVE DATE. new text end

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

Sec. 76. new text begin FORD BUILDING.
new text end

new text begin The Ford Building at 117 University Avenue in St. Paul may not be demolished
during the biennium ending June 30, 2009.
new text end

Sec. 77. new text begin ELECTRONIC DOCUMENTS STUDY AND REPORT.
new text end

new text begin Subdivision 1. new text end

new text begin Study. new text end

new text begin The chief information officer of the state, in consultation with
the state archivist and legislative reference librarian, shall study how electronic documents
and the mechanisms and processes for accessing and reading electronic data can be created,
maintained, exchanged, and preserved by the state in a manner that encourages appropriate
government control, access, choice, and interoperability. The study must consider, but
not be limited to, the policies of other states and nations, management guidelines for state
archives as they pertain to electronic documents, public access to information, expected
storage life of electronic documents, costs of implementation, and potential savings. The
chief information officer shall solicit comments from stakeholders, including, but not
limited to, the legislative auditor, attorney general, librarians, state services for the blind,
representatives of the Minnesota Historical Society, other historians, and the media. The
chief information officer shall also solicit comments from members of the public.
new text end

new text begin Subd. 2. new text end

new text begin Report and recommendations. new text end

new text begin The chief information officer shall
report the officer's findings and recommendations to the chairs of the senate State and
Local Government Operations and Oversight Committee; the house of representatives
Government Operations, Reform, Technology and Elections Committee; and the senate
and house of representatives State Government Finance Divisions by January 15, 2008.
new text end

Sec. 78. new text begin STATE EMPLOYEES ELECTRONIC HEALTH RECORDS PILOT
PROJECT.
new text end

new text begin Subdivision 1. new text end

new text begin Project established. new text end

new text begin The Minnesota State Colleges and Universities
Board of Trustees (MnSCU), in collaboration with the commissioner of employee
relations may establish an enterprise-wide pilot project to provide consumer-owned
electronic personal health records to MnSCU employees and all participants in the state
employee group insurance program.
new text end

new text begin Subd. 2. new text end

new text begin Project goals. new text end

new text begin The goal of the project is to provide consumer-owned
electronic personal health records that are portable among health care providers, health
plan companies, and employers in order to control costs, improve quality, and enhance
safety, and to demonstrate the feasibility of a statewide health information exchange. The
electronic personal health records may provide, but are not limited to, the following:
new text end

new text begin (1) access to electronic medical records;
new text end

new text begin (2) prescription and appointment information;
new text end

new text begin (3) information regarding health education, public health, and health cost
management; and
new text end

new text begin (4) privacy, security, and compliance with HIPAA; Minnesota Statutes, chapter 13;
Minnesota Statutes, section 144.335; and other state law related to data privacy.
new text end

Sec. 79. new text begin TRAINING SERVICES.
new text end

new text begin During the biennium ending June 30, 2009, state executive branch agencies must
consider using services provided by government training services before contracting with
other outside vendors for similar services.
new text end

Sec. 80. new text begin DEPARTMENT OF EMPLOYEE RELATIONS ABOLISHED; DUTIES
TRANSFERRED.
new text end

new text begin (a) The Department of Employee Relations and the position of the commissioner
of employee relations are abolished as of June 1, 2008. Duties of the Department of
Employee Relations and the commissioner of employee relations are transferred on or
before June 1, 2008, to the commissioner of finance, except as follows:
new text end

new text begin (1) duties relating to administration of the state employees workers' compensation
program are transferred on or before June 1, 2008, to the commissioner of administration;
and
new text end

new text begin (2) duties relating to health care purchasing improvement under Minnesota Statutes,
section 43A.312, are transferred on or before June 1, 2008, to the commissioner of health.
new text end

new text begin (b) The commissioner of employee relations, in consultation with the commissioner
of finance, may specify one or more dates before June 1, 2008, on which any or all of the
transfers provided in paragraph (a) will occur.
new text end

new text begin (c) The governor may, in consultation with the commissioner of employee relations,
the commissioner of finance, the commissioner of administration, and the director of the
Office of Enterprise Technology, transfer other duties of the Department of Employee
Relations to other state agencies in order to most effectively and efficiently accomplish the
reorganization required by this act.
new text end

new text begin (d) Transfer of duties under this section is subject to Minnesota Statutes, section
15.039.
new text end

new text begin (e) In addition to any other protection, no employee in the classified service shall
suffer job loss, have a salary reduced, or have employment benefits reduced as a result of
a reorganization mandated or recommended under authority of this section. No action
taken after June 1, 2009, shall be considered a result of reorganization for the purposes
of this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 81. new text begin STATE BUDGET TRENDS STUDY COMMISSION.
new text end

new text begin (a) The State Budget Trends Study Commission is established for the purpose
of completing a study of the implications of state demographic trends for future state
budget conditions, including both expected revenue collections and spending for state
government services and local services supported by state revenues. The commission
shall consist of 15 public members, including five members appointed by the governor;
five members appointed by the senate Subcommittee on Committees of the Committee
on Rules and Administration; four members appointed by the speaker of the house of
representatives; and one member appointed by the minority leader of the house of
representatives. The respective appointing authorities must complete their appointments
under this section within 30 days of the effective date of this section. The commissioner of
finance must convene the commission within 30 days of the completion of appointments
under this section. The members shall select their chair at the first meeting. When making
appointments under this section, the appointing authorities must consider the education
and expertise of appointees in fields such as public finance, demography, and public
administration.
new text end

new text begin (b) Per diem and expense payments to members, removal of members, and vacancies
are governed by Minnesota Statutes, section 15.059.
new text end

new text begin (c) The commissioners of finance and revenue must provide data, analysis, and staff
support required by the commission to complete the study, including, but not limited to,
the effect of expected demographic changes over the next 25 years on state tax bases and
on existing state programs and appropriations. In preparing the study, the commission
shall consult with and use the services of the state demographer to estimate the changing
profile of the Minnesota population by age and other factors relevant to the study. The
commission may also contract with appropriate consultants and experts as needed to
complete the study.
new text end

new text begin (d) In completing the study, the commission must consider:
new text end

new text begin (1) the effect of expected demographic changes over the next 25 years on the tax
base and revenue collections for state income and sales tax, or other state taxes;
new text end

new text begin (2) estimates of tax revenue collections for the years 2012, 2017, 2022, 2027, and
2032, taking into account the sensitivity of the results for changes in estimated migration
rates, labor force participation by older individuals, and other shares of capital versus labor;
new text end

new text begin (3) the effect of demographic trends on entitlement programs and other large state
appropriations relative to current budget commitments;
new text end

new text begin (4) relative trends in spending for state programs including trends identified in the
fast growing expenditures report completed under Minnesota Statutes, section 16A.103,
subdivision 4; and
new text end

new text begin (5) the structure of the state budget with regard to budget stability and flexibility.
new text end

new text begin (e) The commission may make recommendations for state tax or budget policy
changes, including recommendations for changes in tax base, mix of tax types, state
and local finance relationships, entitlements, or budget structure. The commission shall
present preliminary results to the chairs of the legislative committees with jurisdiction
over finance and taxes by February 1, 2008, and a final written report to the same chairs by
January 15, 2009, in compliance with Minnesota Statutes, sections 3.195 and 3.197.
new text end

new text begin (f) This section expires on June 30, 2009.
new text end

Sec. 82. new text begin FINANCING OF ELECTRONIC LICENSING SYSTEM.
new text end

new text begin The state chief information officer shall study the feasibility of alternative financing
options for the purpose of developing and maintaining an electronic system for business
and occupational licenses. The chief information officer must report the results of the
study to the chairs of the senate State Government Budget Division and the house of
representatives State Government Finance Division by January 15, 2008.
new text end

Sec. 83. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In the next and subsequent editions of Minnesota Statutes and Minnesota Rules, the
revisor of statutes must replace references to the Department of Employee Relations and
commissioner of employee relations with references to the appropriate department and
commissioner specified in section 80. The revisor of statutes, in consultation with affected
commissioners of state agencies, must prepare a bill for introduction in the 2008 legislative
session making other statutory changes needed to implement or conform with section 80.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 84. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 16A.102, subdivisions 1, 2, and 3; 16C.055,
subdivision 1; 16C.08, subdivision 4a; 69.051, subdivision 1c; and 359.085, subdivision
8, new text end new text begin are repealed.
new text end

ARTICLE 3

BEST VALUE CONTRACTS

Section 1.

Minnesota Statutes 2006, section 16C.02, is amended by adding a
subdivision to read:

new text begin Subd. 4a. new text end

new text begin Best value; construction. new text end

new text begin For purposes of construction, building,
alteration, improvement, or repair services, "best value" describes the result determined by
a procurement method that considers price and performance criteria, which may include,
but are not limited to:
new text end

new text begin (1) the quality of the vendor's or contractor's performance on previous projects;
new text end

new text begin (2) the timeliness of the vendor's or contractor's performance on previous projects;
new text end

new text begin (3) the level of customer satisfaction with the vendor's or contractor's performance
on previous projects;
new text end

new text begin (4) the vendor's or contractor's record of performing previous projects on budget and
ability to minimize cost overruns;
new text end

new text begin (5) the vendor's or contractor's ability to minimize change orders;
new text end

new text begin (6) the vendor's or contractor's ability to prepare appropriate project plans;
new text end

new text begin (7) the vendor's or contractor's technical capacities;
new text end

new text begin (8) the individual qualifications of the contractor's key personnel; or
new text end

new text begin (9) the vendor's or contractor's ability to assess and minimize risks.
new text end

new text begin "Performance on previous projects" does not include the exercise or assertion of a
person's legal rights. This definition does not apply to sections 16C.32, 16C.33, 16C.34,
and 16C.35.
new text end

Sec. 2.

Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision
to read:

new text begin Subd. 20. new text end

new text begin Vendor. new text end

new text begin "Vendor" means a business, including a construction contractor
or a natural person, and includes both if the natural person is engaged in a business.
new text end

Sec. 3.

Minnesota Statutes 2006, section 16C.03, subdivision 3, is amended to read:

Subd. 3.

Acquisition authority.

The commissioner shall acquire all goods, services,
and utilities needed by agencies. The commissioner shall acquire goods, services, and
utilities by requests for bids, requests for proposals, reverse auctions as provided in
section 16C.10, subdivision 7, or other methods provided by law, unless a section of law
requires a particular method of acquisition to be used. The commissioner shall make all
decisions regarding acquisition activities. The determination of the acquisition method
and all decisions involved in the acquisition process, unless otherwise provided for by
law, shall be based on best value which includes an evaluation of price and may include
other considerations including, but not limited to, environmental considerations, quality,
and vendor performance. A best value determination must be based on the evaluation
criteria detailed in the solicitation document. If criteria other than price are used, the
solicitation document must state the relative importance of price and other factors. deleted text begin Unless
it is determined by the commissioner that an alternative solicitation method provided by
law should be used to determine best value, a request for bid must be used to solicit
formal responses for all building and construction contracts. deleted text end Any or all responses may
be rejected. When using the request for bid process, the bid must be awarded to the
lowest responsive and responsible bidder, taking into consideration conformity with
the specifications, terms of delivery, the purpose for which the contract or purchase is
intended, the status and capability of the vendor, and other considerations imposed in the
request for bids. The commissioner may decide which is the lowest responsible bidder
for all purchases and may use the principles of life-cycle costing, where appropriate, in
determining the lowest overall bid. The duties set forth in this subdivision are subject to
delegation pursuant to this section.

Sec. 4.

Minnesota Statutes 2006, section 16C.03, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Acquisition authority; construction contracts. new text end

new text begin For all building and
construction contracts, the commissioner shall award contracts pursuant to section
16C.28, and "best value" shall be defined and applied as set forth in sections 16C.02,
subdivision 4a, and 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
The duties set forth in this subdivision are subject to delegation pursuant to this section.
The commissioner shall establish procedures for developing and awarding best value
requests for proposals for construction projects. The criteria to be used to evaluate the
proposals must be included in the solicitation document and must be evaluated in an open
and competitive manner.
new text end

Sec. 5.

Minnesota Statutes 2006, section 16C.03, is amended by adding a subdivision
to read:

new text begin Subd. 19. new text end

new text begin Training. new text end

new text begin Any personnel administering procurement procedures for a
user of best value procurement or any consultant retained by a local unit of government to
prepare or evaluate solicitation documents must be trained, either by the department or
through other training, in the request for proposals process for best value contracting for
construction projects. The commissioner may establish a training program for state and
local officials, and vendors and contractors, on best value procurement for construction
projects, including those governed by section 16C.28. If the commissioner establishes
such a training program, the state may charge a fee for providing training.
new text end

Sec. 6.

Minnesota Statutes 2006, section 16C.26, is amended to read:

16C.26 COMPETITIVE BIDS new text begin OR PROPOSALS new text end .

Subdivision 1.

Application.

Except as otherwise provided by sections new text begin 16C.10, new text end
16C.26 and 16C.27, all contracts for building and construction or repairs must be based on
competitive bids new text begin or proposals. "Competitive proposals" specifically refers to the method
of procurement described in section 16C.28, subdivision 1, paragraph (a), clause (2),
and paragraph (c) new text end .

Subd. 2.

Requirement contracts.

Standard requirement price contracts for building
and construction must be established by competitive bids as provided in subdivision 1.
The standard requirement price contracts may contain escalation clauses and may provide
for a negotiated price increase or decrease based upon a demonstrable industrywide or
regional increase or decrease in the vendor's costs or for the addition of similar products or
replacement items not significant to the total value of existing contracts. The term of these
contracts may not exceed five years including all extensions.

Subd. 3.

Publication of notice; expenditures over $25,000.

If the amount of an
expenditure is estimated to exceed $25,000, bids new text begin or proposals new text end must be solicited by public
notice in a manner designated by the commissioner. To the extent practical, this must
include posting on a state Web site. For expenditures over $50,000, new text begin when a call for bids is
issued, new text end the commissioner shall solicit sealed bids by providing notices to all prospective
bidders known to the commissioner by posting notice on a state Web site at least seven
days before the final date of submitting bids. All bids over $50,000 must be sealed when
they are received and must be opened in public at the hour stated in the notice. new text begin All
proposals responsive to a request for proposals according to section 16C.28, subdivision
1, paragraph (a), clause (2), and paragraph (c), shall be submitted and evaluated in the
manner described in the request for proposals, regardless of the dollar amount. new text end All original
bids new text begin and proposals new text end and all documents pertaining to the award of a contract must be retained
and made a part of a permanent file or record and remain open to public inspection.

Subd. 4.

Building and construction contracts; $50,000 or less.

An informal bid
may be used for building, construction, and repair contracts that are estimated at less than
$50,000. Informal bids must be authenticated by the bidder in a manner specified by the
commissioner. new text begin Alternatively, a request for proposals may be issued according to section
16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c), for such contracts.
new text end

Subd. 5.

Standard specifications, security.

Contracts must be based on the
standard specifications prescribed and enforced by the commissioner under this chapter,
unless otherwise expressly provided new text begin or as authorized under section 16C.28, subdivision
1, paragraph (a), clause (2), and paragraph (c) new text end . Each deleted text begin bidder for a contract deleted text end new text begin vendor or
contractor new text end must furnish security approved by the commissioner to ensure the making of
the contract being bid for.

Subd. 6.

Noncompetitive bids.

Agencies are encouraged to contract with small
targeted group businesses designated under section 16C.16 when entering into contracts
that are not subject to competitive bidding procedures.

Sec. 7.

Minnesota Statutes 2006, section 16C.27, subdivision 1, is amended to read:

Subdivision 1.

Single source of supply.

Competitive bidding deleted text begin is deleted text end new text begin or proposals are new text end not
required for contracts clearly and legitimately limited to a single source of supply, and the
contract price may be best established by direct negotiation.

Sec. 8.

Minnesota Statutes 2006, section 16C.28, is amended to read:

16C.28 CONTRACTS; AWARD.

Subdivision 1.

deleted text begin Lowest responsible bidder deleted text end new text begin Award requirements new text end .

new text begin (a) new text end All state
building and construction contracts entered into by or under the supervision of the
commissioner or an agency for which competitive bids new text begin or proposals new text end are required deleted text begin must
be awarded to the lowest responsible bidder, taking into consideration conformity with
the specifications, terms of delivery, the purpose for which the contract is intended, the
status and capability of the vendor, and other considerations imposed in the call for bids.
The commissioner may decide which is the lowest responsible bidder for all contracts
and may use the principles of life cycle costing, where appropriate, in determining the
lowest overall bid. The head of the interested agency shall make the decision, subject
to the approval of the commissioner. Any or all bids may be rejected. In a case where
competitive bids are required and where all bids are rejected, new bids, if solicited, must
be called for as in the first instance, unless otherwise provided by law. deleted text end new text begin may be awarded to
either of the following:
new text end

new text begin (1) the lowest responsible bidder, taking into consideration conformity with the
specifications, terms of delivery, the purpose for which the contract is intended, the status
and capability of the vendor or contractor, other considerations imposed in the call for
bids, and, where appropriate, principles of life-cycle costing; or
new text end

new text begin (2) the vendor or contractor offering the best value, taking into account the
specifications of the request for proposals, the price and performance criteria as set forth
in section 16C.02, subdivision 4a, and described in the solicitation document.
new text end

new text begin (b) The vendor or contractor must secure bonding, commercial general insurance
coverage, and workers' compensation insurance coverage under paragraph (a), clause
(1) or (2). The commissioner shall determine whether to use the procurement process
described in paragraph (a), clause (1), or the procurement process described in paragraph
(a), clause (2), and paragraph (c). If the commissioner uses the method in paragraph
(a), clause (2), and paragraph (c), the head of the agency shall determine which vendor
or contractor offers the best value, subject to the approval of the commissioner. Any
or all bids or proposals may be rejected.
new text end

new text begin (c) When using the procurement process described in subdivision 1, paragraph (a),
clause (2), the solicitation document must state the relative weight of price and other
selection criteria. The award must be made to the vendor or contractor offering the
best value applying the weighted selection criteria. If an interview of the vendor's or
contractor's personnel is one of the selection criteria, the relative weight of the interview
shall be stated in the solicitation document and applied accordingly.
new text end

new text begin Subd. 1a. new text end

new text begin Establishment and purpose. new text end

new text begin (a) The state recognizes the importance of
the inclusion of a best value contracting system for construction as an alternative to the
current low-bid system of procurement. In order to accomplish that goal, state and local
governmental entities shall be able to choose the best value system in different phases.
new text end

new text begin (b) "Best value" means the procurement method defined in section 16C.02,
subdivision 4a.
new text end

new text begin (c) The following entities are eligible to participate in phase I:
new text end

new text begin (1) state agencies;
new text end

new text begin (2) counties;
new text end

new text begin (3) cities; and
new text end

new text begin (4) school districts with the highest 25 percent enrollment of students in the state.
new text end

new text begin Phase I begins on the effective date of this section.
new text end

new text begin (d) The following entities are eligible to participate in phase II:
new text end

new text begin (1) those entities included in phase I; and
new text end

new text begin (2) school districts with the highest 50 percent enrollment of students in the state.
new text end

new text begin Phase II begins two years from the effective date of this section.
new text end

new text begin (e) The following entities are eligible to participate in phase III:
new text end

new text begin (1) all entities included in phases I and II; and
new text end

new text begin (2) all other townships, school districts, and political subdivisions in the state.
new text end

new text begin Phase III begins three years from the effective date of this section.
new text end

new text begin (f) The commissioner or any agency for which competitive bids or proposals are
required may not use best value contracting as defined in section 16C.02, subdivision 4a,
for more than one project annually, or 20 percent of its projects, whichever is greater, in
each of the first three fiscal years in which best value construction contracting is used.
new text end

Subd. 2.

Alterations and erasures.

A bid containing an alteration or erasure of
any price contained in the bid which is used in determining the lowest responsible bid
must be rejected unless the alteration or erasure is corrected in a manner that is clear and
authenticated by an authorized representative of the responder. An alteration or erasure
may be crossed out and the correction printed in ink or typewritten adjacent to it and
initialed by an authorized representative of the responder.

Subd. 3.

Special circumstances.

The commissioner may reject the bid new text begin or proposal
new text end of any deleted text begin bidder deleted text end new text begin vendor or contractor new text end who has failed to perform a previous contract with
the state. In the case of identical low bids from two or more bidders, the commissioner
may use negotiated procurement methods with the tied low bidders for that particular
transaction so long as the price paid does not exceed the low tied bid price. The
commissioner may award contracts to more than one deleted text begin bidder deleted text end new text begin vendor or contractor new text end in
accordance with subdivision 1, if doing so does not decrease the service level or diminish
the effect of competition.

Subd. 4.

Record.

A record must be kept of all bids new text begin or proposals new text end , including names of
bidders, amounts of bids new text begin or proposals new text end , and each successful bid new text begin or proposal new text end . This record is
open to public inspection new text begin , subject to section 13.591 and other applicable law new text end .

Subd. 5.

Preferences not cumulative.

The preferences under sections 16B.121,
16C.06, subdivision 7, and 16C.16 apply, but are not cumulative. The total percentage
of preference granted on a contract may not exceed the highest percentage of preference
allowed for that contract under any one of those sections.

Sec. 9.

Minnesota Statutes 2006, section 103D.811, subdivision 3, is amended to read:

Subd. 3.

Awarding of contract.

(a) At a time and place specified in the bid notice,
the managers may accept or reject any or all bids and may award the contract to the lowest
responsible bidder. The bidder to whom the contract is to be awarded must give a bond,
with ample security, conditioned by satisfactory completion of the contract.

(b) Bids must not be considered which in the aggregate exceed by more than 30
percent the total estimated cost of construction or implementation.

(c) new text begin As an alternative to the procurement method described in paragraph (a), the
managers may issue a request for proposals and award the contract to the vendor or
contractor offering the best value as described in section 16C.28, subdivision 1, paragraph
(a), clause (2), and paragraph (c).
new text end

new text begin (d) new text end The contract must be in writing and be accompanied by or refer to the plans and
specifications for the work to be done as prepared by the engineer for the watershed
district. The plans and specifications shall become a part of the contract.

deleted text begin (d) deleted text end new text begin (e) new text end The contract shall be approved by the managers and signed by the president,
secretary, and contractor.

Sec. 10.

Minnesota Statutes 2006, section 103E.505, subdivision 5, is amended to read:

Subd. 5.

How contract may be awarded.

The contract may be awarded in one
job, in sections, or separately for labor and material and deleted text begin must deleted text end new text begin may new text end be let to the lowest
responsible bidder. new text begin Alternatively, the contract may be awarded to the vendor or contractor
offering the best value under a request for proposals as described in section 16C.28,
subdivision 1, paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 11.

Minnesota Statutes 2006, section 116A.13, subdivision 5, is amended to read:

Subd. 5.

How job may be let.

The job may be let in one job, or in sections, or
separately for labor and material, and deleted text begin shall deleted text end new text begin may new text end be let to the lowest responsible bidder or
bidders therefor. new text begin Alternatively, the contract may be awarded to the vendor or contractor
offering the best value under a request for proposals as described in section 16C.28,
subdivision 1, paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 12.

Minnesota Statutes 2006, section 123B.52, subdivision 1, is amended to read:

Subdivision 1.

Contracts.

A contract for work or labor, or for the purchase of
furniture, fixtures, or other property, except books registered under the copyright laws, or
for the construction or repair of school houses, the estimated cost or value of which shall
exceed that specified in section 471.345, subdivision 3, must not be made by the school
board without first advertising for bids or proposals by two weeks' published notice in the
official newspaper. This notice must state the time and place of receiving bids and contain
a brief description of the subject matter.

Additional publication in the official newspaper or elsewhere may be made as the
board shall deem necessary.

After taking into consideration conformity with the specifications, terms of delivery,
and other conditions imposed in the call for bids, every such contract new text begin for which a call for
bids has been issued new text end must be awarded to the lowest responsible bidder, be duly executed
in writing, and be otherwise conditioned as required by law. The person to whom the
contract is awarded shall give a sufficient bond to the board for its faithful performance.
Notwithstanding section 574.26 or any other law to the contrary, on a contract limited
to the purchase of a finished tangible product, a board may require, at its discretion, a
performance bond of a contractor in the amount the board considers necessary. A record
must be kept of all bids, with names of bidders and amount of bids, and with the successful
bid indicated thereon. A bid containing an alteration or erasure of any price contained in
the bid which is used in determining the lowest responsible bid must be rejected unless the
alteration or erasure is corrected as provided in this section. An alteration or erasure may
be crossed out and the correction thereof printed in ink or typewritten adjacent thereto and
initialed in ink by the person signing the bid. In the case of identical low bids from two or
more bidders, the board may, at its discretion, utilize negotiated procurement methods
with the tied low bidders for that particular transaction, so long as the price paid does not
exceed the low tied bid price. In the case where only a single bid is received, the board
may, at its discretion, negotiate a mutually agreeable contract with the bidder so long as
the price paid does not exceed the original bid. If no satisfactory bid is received, the
board may readvertise. Standard requirement price contracts established for supplies or
services to be purchased by the district must be established by competitive bids. Such
standard requirement price contracts may contain escalation clauses and may provide for a
negotiated price increase or decrease based upon a demonstrable industrywide or regional
increase or decrease in the vendor's costs. Either party to the contract may request that the
other party demonstrate such increase or decrease. The term of such contracts must not
exceed two years with an option on the part of the district to renew for an additional two
years. Contracts for the purchase of perishable food items, except milk for school lunches
and vocational training programs, in any amount may be made by direct negotiation
by obtaining two or more written quotations for the purchase or sale, when possible,
without advertising for bids or otherwise complying with the requirements of this section
or section 471.345, subdivision 3. All quotations obtained shall be kept on file for a
period of at least one year after receipt.

Every contract made without compliance with the provisions of this section shall be
void. Except in the case of the destruction of buildings or injury thereto, where the public
interest would suffer by delay, contracts for repairs may be made without advertising
for bids.

Sec. 13.

Minnesota Statutes 2006, section 123B.52, is amended by adding a
subdivision to read:

new text begin Subd. 1b. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 1, a contract for construction, building, alteration, improvement,
or repair work may be awarded to the vendor or contractor offering the best value under a
request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause
(2), and paragraph (c).
new text end

Sec. 14.

Minnesota Statutes 2006, section 160.17, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
referenced in subdivision 2, counties or towns may issue a request for proposal and award
the contract to the vendor or contractor offering the best value as described in section
16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 15.

Minnesota Statutes 2006, section 160.262, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 4, the commissioner may allow for the award of design-build
contracts for the projects described in subdivision 4 to the vendor or contractor offering
the best value under a request for proposals as described in section 16C.28, subdivision 1,
paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 16.

Minnesota Statutes 2006, section 161.32, is amended by adding a subdivision
to read:

new text begin Subd. 1f. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivisions 1a to 1e, the commissioner may issue a request for proposals
and award the contract to the vendor or contractor offering the best value as described in
section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 17.

new text begin [161.3206] BEST VALUE CONTRACTING AUTHORITY.
new text end

new text begin Notwithstanding sections 16C.25, 161.32, 161.321, or any other law to the contrary,
the commissioner may solicit and award all contracts, other than design-build contracts
governed by section 161.3412, for a project on the basis of a best value selection process
as defined in section 16C.02, subdivision 4a. Section 16C.08 does not apply to this section.
new text end

Sec. 18.

Minnesota Statutes 2006, section 161.3412, subdivision 1, is amended to read:

Subdivision 1.

Best value selection new text begin for design-build contracts new text end .

Notwithstanding
sections 16C.25, 161.32, and 161.321, or any other law to the contrary, the commissioner
may solicit and award a design-build contract for a project on the basis of a best value
selection process. Section 16C.08 does not apply to design-build contracts to which the
commissioner is a party.

Sec. 19.

Minnesota Statutes 2006, section 161.38, subdivision 4, is amended to read:

Subd. 4.

Effects on other law of public contract with commissioner.

Whenever
the road authority of any city enters into an agreement with the commissioner pursuant
to this section, and a portion of the cost is to be assessed against benefited property,
the letting of a public contract by the commissioner for the work shall be deemed to
comply with statutory or charter provisions requiring the city (1) to advertise for bids
before awarding a contract for a public improvement, (2) to let the contract to the lowest
responsible bidder new text begin or to the vendor or contractor offering the best value new text end , and (3) to require
a performance bond to be filed by the contractor before undertaking the work. The
contract so let by the commissioner and the performance bond required of the contractor
by the commissioner shall be considered to be the contract and bond of the city for the
purposes of complying with the requirements of any applicable law or charter provision,
and the bond shall inure to the benefit of the city and operate for their protection to the
same extent as though they were parties thereto.

Sec. 20.

Minnesota Statutes 2006, section 365.37, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 2, a contract for construction, building, alteration, improvement,
or repair work may be awarded to the vendor or contractor offering the best value under a
request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause
(2), and paragraph (c).
new text end

Sec. 21.

Minnesota Statutes 2006, section 374.13, is amended to read:

374.13 TO ADVERTISE FOR BIDS.

new text begin Subdivision 1. new text end

new text begin Bidding process. new text end

When the plans and specifications are completed
and approved by the city council and the county board, the commission shall, after notice
appropriate to inform possible bidders, obtain bids or proposals for all or any portion of
the work or materials, or both, to be done, performed, or furnished in the construction of
the building. All bids or proposals shall be sealed by the bidders or proposers and filed
with the commission at or before the time specified for the opening of bids or proposals.
At the time and place specified for the opening of bids or proposals, the commission shall
meet, open the bids or proposals, tabulate them, and award the contract or contracts to the
responsible bidder whose bid or proposal is the most favorable to the city or county, or
reject all bids and proposals. If all bids or proposals are rejected, the commission may,
after similar notice, obtain more bids or proposals or may modify or change the plans and
specifications and submit the modified plans and specifications to the city council and the
county board for approval. When the modified or changed plans and specifications are
satisfactory to both the city council and the county board, the plans and specifications
shall be returned to the commission and the commission shall proceed again, after similar
notice, to obtain bids or proposals. Any contract awarded by the commission shall be
subject to approval by the city council and the county board.

new text begin Subd. 2. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 1, the commission may issue a request for proposals and award
the contract to the vendor or contractor offering the best value as described in section
16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 22.

Minnesota Statutes 2006, section 375.21, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 1, a county board may award a contract for construction, building,
alteration, improvement, or repair work to the vendor or contractor offering the best value
under a request for proposals as described in section 16C.28, subdivision 1, paragraph
(a), clause (2), and paragraph (c).
new text end

Sec. 23.

Minnesota Statutes 2006, section 383C.094, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Contracts in excess of $500; best value alternative. new text end

new text begin As an alternative to
the procurement method described in subdivision 1, the contract may be awarded to the
vendor or contractor offering the best value under a request for proposals as described in
section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 24.

Minnesota Statutes 2006, section 412.311, is amended to read:

412.311 CONTRACTS.

new text begin Subdivision 1. new text end

new text begin Lowest responsible bidder. new text end

Except as provided in sections 471.87
to 471.89, no member of a council shall be directly or indirectly interested in any contract
made by the council. Whenever the amount of a contract for the purchase of merchandise,
materials or equipment or for any kind of construction work undertaken by the city is
estimated to exceed the amount specified by section 471.345, subdivision 3, the contract
shall be let to the lowest responsible bidder, after notice has been published once in the
official newspaper at least ten days in advance of the last day for the submission of bids. If
the amount of the contract exceeds $1,000, it shall be entered into only after compliance
with section 471.345.

new text begin Subd. 2. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 1, a contract for construction, building, alteration, improvement,
or repair work may be awarded to the vendor or contractor offering the best value under a
request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause
(2), and paragraph (c).
new text end

Sec. 25.

Minnesota Statutes 2006, section 429.041, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 2, the council may issue a request for proposals and award the
contract to the vendor or contractor offering the best value as described in section 16C.28,
subdivision 1, paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 26.

Minnesota Statutes 2006, section 458D.21, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Contracts in excess of $5,000; best value alternative. new text end

new text begin As an alternative
to the procurement method described in subdivision 2, the board may issue a request for
proposals and award the contract to the vendor or contractor offering the best value as
described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 27.

Minnesota Statutes 2006, section 469.015, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 1, the authority may issue a request for proposals and award the
contract to the vendor or contractor offering the best value under a request for proposals as
described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 28.

Minnesota Statutes 2006, section 469.068, subdivision 1, is amended to read:

Subdivision 1.

Contracts; bids; bonds.

All construction work and every purchase
of equipment, supplies, or materials necessary in carrying out the purposes of sections
469.048 to 469.068, that involve the expenditure of $1,000 or more, shall be awarded by
contract as provided in this subdivision new text begin or in subdivision 1a new text end . Before receiving bids under
sections 469.048 to 469.068, the authority shall publish, once a week for two consecutive
weeks in the official newspaper of the port's city, a notice that bids will be received for the
construction work, or purchase of equipment, supplies, or materials. The notice shall state
the nature of the work, and the terms and conditions upon which the contract is to be let
and name a time and place where the bids will be received, opened, and read publicly,
which time shall be not less than seven days after the date of the last publication. After
the bids have been received, opened, read publicly, and recorded, the commissioners
shall award the contract to the lowest responsible bidder, reserving the right to reject
any or all bids. The contract shall be executed in writing and the person to whom the
contract is awarded shall give sufficient bond to the board for its faithful performance. If
no satisfactory bid is received, the port authority may readvertise, or, by an affirmative
vote of two of its commissioners in the case of a three-member commission, or five of
its members in the case of a seven-member commission, may authorize the authority
to perform any part or parts of any construction work by day labor under conditions it
prescribes. The commissioners may establish reasonable qualifications to determine
the fitness and responsibility of bidders, and require bidders to meet the qualifications
before bids are accepted. If the commissioners by a two-thirds or five-sevenths vote
declare that an emergency exists requiring the immediate purchase of any equipment or
material or supplies at a cost in excess of $1,000, but not exceeding $5,000, in amount,
or making of emergency repairs, it shall not be necessary to advertise for bids, but the
material, equipment, or supplies may be purchased in the open market at the lowest price
obtainable, or the emergency repairs may be contracted for or performed without securing
formal competitive bids. An emergency, for purposes of this section, is unforeseen
circumstances or conditions which result in the jeopardizing of human life or property.

In all contracts involving the employment of labor, the commissioners shall stipulate
conditions they deem reasonable, as to the hours of labor and wages and may stipulate as
to the residence of employees to be employed by the contractors.

Bonds shall be required from contractors for any works of construction as provided
in and subject to all the provisions of sections 574.26 to 574.31.

Sec. 29.

Minnesota Statutes 2006, section 469.068, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Contracts; best value alternative. new text end

new text begin As an alternative to the procurement
method described in subdivision 1, a contract may be awarded to the vendor or contractor
offering the best value under a request for proposals as described in section 16C.28,
subdivision 1, paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 30.

Minnesota Statutes 2006, section 469.101, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Construction contracts. new text end

new text begin For all contracts for construction, alteration,
repair, or maintenance work, the authority may award contracts to the vendor offering the
best value, and "best value" shall be defined and applied as set forth in sections 16C.02,
subdivision 4a, and 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
Alternatively, the authority may award all contracts for construction, alteration, repair,
or maintenance work to the lowest responsible bidder, reserving the right to reject any
or all bids.
new text end

Sec. 31.

Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Contracts over $50,000; best value alternative. new text end

new text begin As an alternative to the
procurement method described in subdivision 3, municipalities may award a contract for
construction, alteration, repair, or maintenance work to the vendor or contractor offering
the best value under a request for proposals as described in section 16C.28, subdivision 1,
paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 32.

Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Contracts from $10,000 to $50,000; best value alternative. new text end

new text begin As an
alternative to the procurement method described in subdivision 4, municipalities may
award a contract for construction, alteration, repair, or maintenance work to the vendor or
contractor offering the best value under a request for proposals as described in section
16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 33.

Minnesota Statutes 2006, section 471.345, subdivision 5, is amended to read:

Subd. 5.

Contracts less than $10,000.

If the amount of the contract is estimated
to be $10,000 or less, the contract may be made either upon quotation or in the open
market, in the discretion of the governing body. If the contract is made upon quotation
it shall be based, so far as practicable, on at least two quotations which shall be kept on
file for a period of at least one year after their receipt. new text begin Alternatively, municipalities may
award a contract for construction, alteration, repair, or maintenance work to the vendor or
contractor offering the best value under a request for proposals as described in section
16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
new text end

Sec. 34.

Minnesota Statutes 2006, section 473.523, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Contracts over $50,000; best value alternative. new text end

new text begin As an alternative to
the procurement method described in subdivision 1, the council may issue a request for
proposals and award the contract to the vendor or contractor offering the best value
under a request for proposals as described in section 16C.28, subdivision 1, paragraph
(a), clause (2), and paragraph (c).
new text end

Sec. 35.

Minnesota Statutes 2006, section 473.756, subdivision 12, is amended to read:

Subd. 12.

Contracts.

The authority may enter into a development agreement with
the team, the county, or any other entity relating to the construction, financing, and use of
the ballpark and related facilities and public infrastructure. The authority may contract
for materials, supplies, and equipment in accordance with sections 471.345 and 473.754,
except that the authority, with the consent of the county, may employ or contract with
persons, firms, or corporations to perform one or more or all of the functions of architect,
engineer, or construction manager with respect to all or any part of the ballpark and
public infrastructure. Alternatively, at the request of the team and with the consent of the
county, the authority shall authorize the team to provide for the design and construction
of the ballpark and related public infrastructure, subject to terms of Laws 2006, chapter
257. The construction manager may enter into contracts with contractors for labor,
materials, supplies, and equipment for the construction of the ballpark and related public
infrastructure through the process of public bidding, except that the construction manager
may, with the consent of the authority or the team:

(1) narrow the listing of eligible bidders to those which the construction manager
determines to possess sufficient expertise to perform the intended functions;

(2) award contracts to the contractors that the construction manager determines
provide the best value new text begin under a request for proposals as described in section 16C.28,
subdivision 1, paragraph (a), clause (2), and paragraph (c) new text end , which are not required to be
the lowest responsible bidder; and

(3) for work the construction manager determines to be critical to the completion
schedule, award contracts on the basis of competitive proposals or perform work with
its own forces without soliciting competitive bids if the construction manager provides
evidence of competitive pricing.

The authority shall require that the construction manager certify, before the contract is
signed, a fixed and stipulated construction price and completion date to the authority
and post a performance bond in an amount at least equal to 100 percent of the certified
price, to cover any costs which may be incurred in excess of the certified price, including
but not limited to costs incurred by the authority or loss of revenues resulting from
incomplete construction on the completion date. The authority may secure surety bonds
as provided in section 574.26, securing payment of just claims in connection with all
public work undertaken by it. Persons entitled to the protection of the bonds may enforce
them as provided in sections 574.28 to 574.32, and shall not be entitled to a lien on any
property of the authority under the provisions of sections 514.01 to 514.16. Contracts for
construction and operation of the ballpark must include programs, including Youthbuild,
to provide for participation by small local businesses and businesses owned by people of
color, and the inclusion of women and people of color in the workforces of contractors
and ballpark operators. The construction of the ballpark is a "project" as that term is
defined in section 177.42, subdivision 2, and is subject to the prevailing wage law under
sections 177.41 to 177.43.