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HF 548

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

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to government operations; appropriating money for general legislative
1.3and administrative expenses of state government; regulating state and local
1.4government operations; directing the Legislative Coordinating Commission
1.5to assist in fostering an understanding of ethnic and cultural diversity and
1.6assist in issues related to preparedness for terrorism and disasters; creating
1.7the position of poet laureate; imposing a temporary technology surcharge;
1.8establishing provisions for grants management; requiring a state Web site with
1.9a searchable database on state contracts and grants; promoting use of persons
1.10with disabilities for document imaging services; modifying secretary of state
1.11provisions; creating a state employees electronic health records pilot project;
1.12creating a sustainable growth working group; abolishing the Department of
1.13Employee Relations and transferring duties; establishing a state budget trends
1.14study commission; requiring best value contracts and procurement for certain
1.15purposes; requiring reports; amending Minnesota Statutes 2006, sections
1.163.303, by adding subdivisions; 4.035, subdivision 3; 5.12, subdivision 1;
1.1715.06, subdivision 2; 15B.17, subdivision 1; 16A.102, subdivision 4; 16A.103,
1.18subdivision 1e; 16A.1286, subdivision 2; 16A.695, subdivisions 2, 3, by
1.19adding subdivisions; 16B.055, subdivision 1; 16B.24, subdivision 5; 16B.35,
1.20subdivision 1; 16C.02, subdivisions 4, 12, 14, by adding subdivisions; 16C.03,
1.21subdivisions 2, 3, 4, 8, 16, by adding subdivisions; 16C.05, subdivisions 1,
1.222; 16C.08, subdivisions 2, 4, by adding subdivisions; 16C.10, subdivision
1.237; 16C.16, subdivision 5; 16C.26; 16C.27, subdivision 1; 16C.28; 43A.08,
1.24subdivision 2a; 43A.346, subdivision 1; 103D.811, subdivision 3; 103E.505,
1.25subdivision 5; 116A.13, subdivision 5; 123B.52, subdivision 1, by adding a
1.26subdivision; 160.17, by adding a subdivision; 160.262, by adding a subdivision;
1.27161.1419, subdivision 8; 161.32, by adding a subdivision; 161.3412, subdivision
1.281; 161.38, subdivision 4; 270B.14, by adding a subdivision; 270C.03, subdivision
1.291; 302A.821, subdivision 4; 308A.995, subdivision 4; 308B.121, subdivision
1.304; 308B.215, subdivision 2; 317A.823, subdivision 1; 321.0206; 321.0210;
1.31323A.1003; 336.1-110; 336.9-516; 336.9-525; 358.41; 358.42; 358.50; 359.085,
1.32subdivisions 2, 3; 365.37, by adding a subdivision; 374.13; 375.21, by adding
1.33a subdivision; 383C.094, by adding a subdivision; 412.311; 429.041, by
1.34adding a subdivision; 458D.21, by adding a subdivision; 469.015, by adding
1.35a subdivision; 469.068, subdivision 1, by adding a subdivision; 469.101, by
1.36adding a subdivision; 471.345, subdivision 5, by adding subdivisions; 473.523,
1.37by adding a subdivision; 473.756, subdivision 12; 477A.014, subdivision 4;
1.38491A.02, subdivision 4; 507.24, subdivision 2; 517.08, subdivisions 1b, 1c; Laws
1.392005, chapter 156, article 2, section 45; Laws 2006, chapter 253, section 22,
2.1subdivision 1; Laws 2006, chapter 282, article 14, section 5; proposing coding
2.2for new law in Minnesota Statutes, chapters 4; 5; 11A; 13; 16B; 16C; 161; 270C;
2.3308B; 321; repealing Minnesota Statutes 2006, sections 16A.102, subdivisions 1,
2.42, 3; 16B.055, subdivisions 2, 3; 16C.055, subdivision 1; 16C.08, subdivision
2.54a; 69.051, subdivision 1c; 359.085, subdivision 8.
2.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.7ARTICLE 1
2.8STATE GOVERNMENT APPROPRIATIONS

2.9
Section 1. SUMMARY OF APPROPRIATIONS.
2.10    The amounts shown in this section summarize direct appropriations, by fund, made
2.11in this article.
2.12
2008
2009
Total
2.13
General
$
357,713,000
$
319,107,000
$
676,820,000
2.14
Health Care Access
$
1,871,000
$
1,912,000
$
3,783,000
2.15
2.16
State Government Special
Revenue
2,119,000
2,124,000
4,243,000
2.17
Environmental
442,000
448,000
890,000
2.18
Remediation
250,000
250,000
500,000
2.19
Special Revenue
6,843,000
3,839,000
10,682,000
2.20
2.21
Highway User Tax
Distribution
2,139,000
2,183,000
4,322,000
2.22
Workers' Compensation
7,640,000
7,350,000
14,990,000
2.23
Total
$
379,017,000
$
337,213,000
$
716,230,000

2.24
Sec. 2. STATE GOVERNMENT APPROPRIATIONS.
2.25    The sums shown in the columns marked "appropriations" are appropriated to the
2.26agencies and for the purposes specified in this article. The appropriations are from the
2.27general fund, or another named fund, and are available for the fiscal years indicated
2.28for each purpose. The figures "2008" and "2009" used in this article mean that the
2.29appropriations listed under them are available for the fiscal year ending June 30, 2008, or
2.30June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
2.31year 2009. "The biennium" is fiscal years 2008 and 2009.
2.32
APPROPRIATIONS
2.33
Available for the Year
2.34
Ending June 30
2.35
2008
2009

2.36
Sec. 3. LEGISLATURE
2.37
Subdivision 1.Total Appropriation
$
76,494,000
$
71,544,000
3.1
Appropriations by Fund
3.2
2008
2009
3.3
General
76,316,000
71,366,000
3.4
Health Care Access
178,000
178,000
3.5The amounts that may be spent for each
3.6purpose are specified in the following
3.7subdivisions.
3.8
Subd. 2.Senate
26,320,000
23,677,000
3.9
Subd. 3.House of Representatives
33,168,000
31,746,000
3.10During the biennium ending June 30, 2009,
3.11any revenues received by the house of
3.12representatives from sponsorship notices in
3.13broadcast or print media are appropriated to
3.14the house of representatives.
3.15
Subd. 4.Legislative Coordinating Commission
16,988,000
16,121,000
3.16
Appropriations by Fund
3.17
General
16,810,000
15,943,000
3.18
Health Care Access
178,000
178,000
3.19(a) $5,624,000 the first year and $5,469,000
3.20the second year are for the Office of the
3.21Revisor of Statutes.
3.22(b) $1,257,000 the first year and $1,254,000
3.23the second year are for the Legislative
3.24Reference Library.
3.25(c) $5,719,000 the first year and $5,720,000
3.26the second year are for the Office of the
3.27Legislative Auditor.
3.28(d) $750,000 the first year is to the Legislative
3.29Coordinating Commission for a facilitated
3.30planning process relating to the Capitol
3.31building and the Capitol complex. The
3.32process must be conducted in cooperation
3.33with the Capitol Area Architectural and
3.34Planning Board and the commissioner
4.1of administration, and must include
4.2consideration of issues relating to renovation
4.3and possible expansion of the Capitol
4.4building, phasing strategies relating to
4.5renovation of the Capitol, and related Capitol
4.6complex planning issues. The process must
4.7include consideration of as many options as
4.8feasible relating to renovation of the Capitol
4.9and related Capitol complex buildings. The
4.10process must be completed by September
4.1130, 2007. Beginning October 1, 2007,
4.12the Legislative Coordinating Commission
4.13may transfer any unexpended balance from
4.14this appropriation to the commissioner of
4.15administration for additional planning and
4.16design for the renovation of the Capitol
4.17complex.
4.18(e) All legislative offices should, whenever
4.19possible, implement information technology
4.20systems that are compatible and work
4.21seamlessly across the legislature. Wherever
4.22possible, single systems should be
4.23implemented to avoid unnecessary
4.24duplication and inefficiency. The directors
4.25of information technology for the senate,
4.26house of representatives, and the Legislative
4.27Coordinating Commission must submit
4.28a written report describing their efforts
4.29to collaborate on implementing shared
4.30information technology systems. The report
4.31must be submitted to the chairs of the house
4.32of representatives and senate committees
4.33with jurisdiction over rules and to the
4.34Legislative Coordinating Commission on
4.35January 15, 2008, and January 15, 2009.

5.1
5.2
Sec. 4. GOVERNOR AND LIEUTENANT
GOVERNOR
$
3,679,000
$
3,777,000
5.3(a) This appropriation is to fund the Office of
5.4the Governor and Lieutenant Governor.
5.5$19,000 the first year and $19,000 the
5.6second year are for necessary expenses in
5.7the normal performance of the governor's
5.8and lieutenant governor's duties for which no
5.9other reimbursement is provided.
5.10(b) By September 1 of each year, the
5.11commissioner of finance shall report to
5.12the chairs of the senate Governmental
5.13Operations Budget Division and the house
5.14State Government Finance Division any
5.15personnel costs incurred by the Office of
5.16the Governor and Lieutenant Governor that
5.17were supported by appropriations to other
5.18agencies during the previous fiscal year.
5.19The Office of the Governor shall inform the
5.20chairs of the divisions before initiating any
5.21interagency agreements.

5.22
Sec. 5. STATE AUDITOR
$
9,234,000
$
9,220,000

5.23
Sec. 6. ATTORNEY GENERAL
$
26,182,000
$
27,113,000
5.24
Appropriations by Fund
5.25
2008
2009
5.26
General
24,068,000
24,994,000
5.27
5.28
State Government
Special Revenue
1,719,000
1,724,000
5.29
Environmental
145,000
145,000
5.30
Remediation
250,000
250,000

5.31
Sec. 7. SECRETARY OF STATE
$
9,029,000
$
6,517,000
5.32
Appropriations by Fund
5.33
2008
2009
6.1
General
6,185,000
6,517,000
6.2
Special Revenue
2,844,000
6.3(a) $310,000 of this appropriation must be
6.4transferred to the Help America Vote Act
6.5account and is designated as a portion of the
6.6match required by section 253(b)(5) of the
6.7Help America Vote Act.
6.8(b) $2,844,000 the first year is appropriated
6.9from the Help America Vote Act account for
6.10the purposes and uses authorized by federal
6.11law. This appropriation is available until
6.12June 30, 2009.
6.13(c) Notwithstanding Laws 2005, chapter
6.14162, section 34, subdivision 7, any balance
6.15remaining in the Help America Vote Act
6.16account after previous appropriations and the
6.17appropriations in this section is appropriated
6.18to the secretary of state for the purposes of
6.19the account. This appropriation is available
6.20until June 30, 2011.

6.21
6.22
Sec. 8. CAMPAIGN FINANCE AND PUBLIC
DISCLOSURE BOARD
$
714,000
$
735,000

6.23
Sec. 9. INVESTMENT BOARD
$
151,000
$
151,000

6.24
6.25
Sec. 10. OFFICE OF ENTERPRISE
TECHNOLOGY
$
10,943,000
$
7,739,000
6.26(a) $2,000,000 the first year is for the first
6.27phase of an electronic licensing system.
6.28This is a onetime appropriation. This
6.29appropriation carries forward to the second
6.30year.
6.31(b) $3,910,000 the first year and $3,910,000
6.32the second year are for information
6.33technology security. The base appropriation
7.1is $2,682,000 in fiscal year 2010 and
7.2$2,682,000 in fiscal year 2011.
7.3(c) $1,000,000 the first year is for small
7.4agency technology infrastructure projects.
7.5During the biennium, these amounts are
7.6intended to include hardware and software
7.7improvements for the Asian-Pacific Council,
7.8the Capitol Area Architectural and Planning
7.9Board, the Minnesota Library for the
7.10Blind, the Minnesota State Academies, and
7.11the Ombudsman for Mental Health and
7.12Disabilities.
7.13(d) $68,000 the first year is for an electronic
7.14documents study and report.
7.15(e) $200,000 the first year is for grants to be
7.16distributed to the counties participating in
7.17the development of the integrated financial
7.18system for enhancements to the system.
7.19Enhancements include:
7.20(1) systems to improve the tracking and
7.21reporting of state and federal grants;
7.22(2) electronic payments to vendors;
7.23(3) electronic posting of state payments to
7.24the financial system;
7.25(4) automating revenue collection and
7.26posting through check conversion, automatic
7.27clearing house transactions, or credit card
7.28processing;
7.29(5) improvements to county budgetary
7.30systems;
7.31(6) storage or linkage of electronic
7.32documents;
7.33(7) improved executive level reporting and
7.34extraction of data; and
8.1(8) improved information and reporting for
8.2audits.
8.3The grant funds shall be distributed on a pro
8.4rata basis to each of the counties participating
8.5in the development of the integrated financial
8.6system. The Minnesota Counties Computer
8.7Cooperative, acting as a fiscal agent for
8.8the participating counties, shall receive the
8.9grant money for the counties. The grants
8.10will only be distributed after $600,000 is
8.11expended or provided from other sources.
8.12The chief information officer may require
8.13a report or such other information as the
8.14chief information officer deems appropriate
8.15to verify that the requirements of this
8.16section have been met. This appropriation
8.17is available until June 30, 2011, and cancels
8.18on that date.
8.19The chief information officer shall report to
8.20the legislative committees and divisions with
8.21jurisdiction over state government policy
8.22and finance and economic development
8.23programs.

8.24
Sec. 11. ADMINISTRATIVE HEARINGS
$
7,823,000
$
7,540,000
8.25
Appropriations by Fund
8.26
2008
2009
8.27
General
283,000
290,000
8.28
8.29
Workers'
Compensation
7,540,000
7,250,000

8.30
Sec. 12. ADMINISTRATION
8.31
Subdivision 1.Total Appropriation
$
42,220,000
$
22,128,000
8.32The amounts that may be spent for each
8.33purpose are specified in the following
8.34subdivisions.
9.1
Subd. 2.State Facilities Services
14,496,000
11,208,000
9.2(a) $7,888,000 the first year and $7,888,000
9.3the second year are for office space costs of
9.4the legislature and veterans organizations,
9.5for ceremonial space, and for statutorily free
9.6space.
9.7(b) $2,500,000 the first year is to purchase
9.8and implement a Web-enabled, shared
9.9computer system to facilitate the state's real
9.10property portfolio management.
9.11(c) $885,000 the first year is for onetime
9.12funding of agency relocation expenses for
9.13the Department of Public Safety.
9.14
Subd. 3.State and Community Services
3,456,000
3,547,000
9.15(a) $60,000 the first year and $240,000 the
9.16second year are to fund activities to prepare
9.17for and promote the 2010 census. Base
9.18funding for this activity is $260,000 in fiscal
9.19year 2010 and $180,000 in fiscal year 2011.
9.20(b) $1,100,000 the first year and $1,100,000
9.21the second year are for the Land Management
9.22Information Center.
9.23(c) $196,000 the first year and $196,000 the
9.24second year are for the Office of the State
9.25Archaeologist.
9.26(d) $89,000 the first year is for the genetic
9.27information work group and report. This
9.28appropriation is available until June 30, 2009.
9.29
Subd. 4.Administrative Management Services
6,197,000
5,418,000
9.30(a) $125,000 the first year is to create an
9.31Office of Grants Management to standardize
9.32state grants management policies and
9.33procedures. For the fiscal year beginning
10.1July 1, 2008, the commissioner must
10.2deduct up to $125,000 from state grants
10.3to nongovernmental entities, as necessary
10.4to fund the commissioner's duties under
10.5new Minnesota Statutes, sections 16B.97
10.6and 16B.98. The amount deducted from
10.7appropriations for these grants is transferred
10.8to the commissioner for purposes of
10.9administering these sections.
10.10(b) $250,000 the first year and $250,000
10.11the second year are to establish a small
10.12agency resource team to consolidate and
10.13streamline the human resources and financial
10.14management activities for small state
10.15agencies, boards, and councils.
10.16(c) $700,000 the first year is a onetime
10.17appropriation for a targeted group business
10.18disparity study. The commissioner
10.19must cooperate with units of local
10.20government conducting similar studies. The
10.21commissioner shall ensure that the results of
10.22the study are kept current and that any new or
10.23upgraded accounting or procurement systems
10.24properly record purchases from minority and
10.25female-owned businesses through the use of
10.26state contracts, and the availability of bids
10.27from those businesses.
10.28(d) $74,000 the first year and $74,000
10.29the second year are for the Council on
10.30Developmental Disabilities.
10.31(e) $250,000 in fiscal year 2008 and $250,000
10.32in fiscal year 2009 are for a grant to the
10.33Council on Developmental Disabilities
10.34for the purpose of establishing a statewide
10.35self-advocacy network for persons with
11.1intellectual and developmental disabilities
11.2(ID/DD). The self-advocacy network shall:
11.3(1) ensure that persons with ID/DD are
11.4informed of their rights in employment,
11.5housing, transportation, voting, government
11.6policy, and other issues pertinent to the
11.7ID/DD community;
11.8(2) provide public education and awareness
11.9of the civil and human rights issues persons
11.10with ID/DD face;
11.11(3) provide funds, technical assistance, and
11.12other resources for self-advocacy groups
11.13across the state; and
11.14(4) organize systems of communications
11.15to facilitate an exchange of information
11.16between self-advocacy groups.
11.17This appropriation is in addition to any other
11.18appropriations and must be added to the base
11.19appropriation beginning in fiscal year 2010.
11.20(f) $75,000 is for purposes of promotion
11.21of document imaging work in government
11.22agencies to be done by persons with
11.23developmental disabilities.
11.24
Subd. 5.Fiscal Agent
1,000,000
11.25$1,000,000 is for a grant to Washington
11.26County for capital improvements detailed
11.27in the approved planned unit development
11.28for the Disabled Veteran's Rest Camp to
11.29provide increased capacity, amenities, access,
11.30and safety for Minnesota veterans. This
11.31appropriation is available until spent.
11.32
Subd. 6.Public Broadcasting
17,071,000
1,955,000
11.33(a) $9,750,000 is for grants to noncommercial
11.34television stations to assist with the continued
12.1conversion to a digital broadcast signal as
12.2mandated by the federal government. This
12.3appropriation must be used to assist each
12.4station to complete its digital production
12.5facilities and interconnect with other
12.6Minnesota public television stations. In
12.7order to qualify for these grants, a station
12.8must meet the criteria established for grants
12.9in Minnesota Statutes, section 129D.12,
12.10subdivision 2.
12.11(b) $3,000,000 is for grants to Minnesota
12.12Public Radio to assist with conversion to a
12.13digital broadcast signal.
12.14(c) $2,263,000 the first year and $963,000
12.15the second year are for matching grants for
12.16public television.
12.17(d) $398,000 the first year and $398,000
12.18the second year are for public television
12.19equipment grants. Equipment or matching
12.20grant allocations shall be made after
12.21considering the recommendations of the
12.22Minnesota Public Television Association.
12.23(e) $17,000 the first year and $17,000 the
12.24second year are for grants to the Twin Cities
12.25regional cable channel.
12.26(f) $413,000 in fiscal year 2008 and $287,000
12.27in fiscal year 2009 are for community service
12.28grants to public educational radio stations.
12.29(g) $400,000 in fiscal year 2008 and $100,000
12.30in fiscal year 2009 are for equipment grants
12.31to public educational radio stations.
12.32(h) The grants in paragraphs (f) and (g)
12.33must be allocated after considering the
12.34recommendations of the Association of
13.1Minnesota Public Educational Radio Stations
13.2under Minnesota Statutes, section 129D.14.
13.3(i) $830,000 the first year and $190,000
13.4the second year are for equipment grants to
13.5Minnesota Public Radio, Inc.
13.6(j) Any unencumbered balance remaining the
13.7first year for grants to public television or
13.8radio stations does not cancel and is available
13.9for the second year.

13.10
13.11
13.12
Sec. 13. CAPITOL AREA
ARCHITECTURAL AND PLANNING
BOARD
$
427,000
$
373,000
13.13$65,000 in fiscal year 2008 is for the
13.14decennial expenses related to the board's
13.15duties under Minnesota Statutes, section
13.16473.864, subdivisions 1 and 2. Money
13.17appropriated in fiscal year 2008 is available
13.18until June 30, 2009. This is a onetime
13.19appropriation.

13.20
Sec. 14. FINANCE
13.21
Subdivision 1.Total Appropriation
$
21,765,000
$
15,596,000
13.22The amounts that may be spent for each
13.23purpose are specified in the following
13.24subdivisions.
13.25
Subd. 2.State Financial Management
8,923,000
8,905,000
13.26$250,000 the first year is for the state's
13.27share of the cost of bankruptcy counsel
13.28representing joint interests of the state and
13.29the city of Duluth in the Northwest Airlines
13.30bankruptcy. This is a onetime appropriation.
13.31
13.32
Subd. 3.Information and Management
Services
12,842,000
6,691,000
14.1$6,319,000 the first year is for costs related to
14.2the Minnesota Accounting and Procurement
14.3System (MAPS).

14.4
Sec. 15. EMPLOYEE RELATIONS
$
5,895,000
$
5,839,000
14.5 $250,000 each year is for the Center for
14.6Health Care Purchasing Improvement. This
14.7is a onetime appropriation.

14.8
Sec. 16. REVENUE
14.9
Subdivision 1.Total Appropriation
$
127,970,000
$
123,224,000
14.10
Appropriations by Fund
14.11
2008
2009
14.12
General
123,841,000
119,004,000
14.13
Health Care Access
1,693,000
1,734,000
14.14
14.15
Highway User Tax
Distribution
2,139,000
2,183,000
14.16
Environmental
297,000
303,000
14.17The amounts that may be spent for each
14.18purpose are specified in subdivisions 2 and 3.
14.19
Subd. 2.Tax System Management
107,648,000
101,045,000
14.20
Appropriations by Fund
14.21
General
103,519,000
96,825,000
14.22
Health Care Access
1,693,000
1,734,000
14.23
14.24
Highway User Tax
Distribution
2,139,000
2,183,000
14.25
Environmental
297,000
303,000
14.26(a) $6,910,000 the first year and $8,704,000
14.27the second year are for additional activities
14.28to identify and collect tax liabilities from
14.29individuals and businesses that currently
14.30do not pay all taxes owed. This initiative
14.31is expected to result in new general fund
14.32revenues of $42,400,000 for the biennium
14.33ending June 30, 2009.
14.34(b) The department must report to the chairs
14.35of the house of representatives Ways and
15.1Means and senate Finance Committees by
15.2March 1, 2008, and January 15, 2009, on the
15.3following performance indicators:
15.4(1) the number of corporations noncompliant
15.5with the corporate tax system each year and
15.6the percentage and dollar amounts of valid
15.7tax liabilities collected;
15.8(2) the number of businesses noncompliant
15.9with the sales and use tax system and the
15.10percentage and dollar amount of the valid tax
15.11liabilities collected; and
15.12(3) the number of individual noncompliant
15.13cases resolved and the percentage and dollar
15.14amounts of valid tax liabilities collected.
15.15(c) The reports must also identify base-level
15.16expenditures and staff positions related to
15.17compliance and audit activities, including
15.18baseline information as of January 1, 2006.
15.19The information must be provided at the
15.20budget activity level.
15.21(d) $10,550,000 the first year is for the
15.22purchase and development of an integrated
15.23tax software package.
15.24(e) $75,000 the first year and $75,000 the
15.25second year are for grants to one or more
15.26nonprofit organizations, qualifying under
15.27section 501(c)(3) of the Internal Revenue
15.28Code of 1986, to coordinate, facilitate,
15.29encourage, and aid in the provision of
15.30taxpayer assistance services. For purposes
15.31of this paragraph, "taxpayer assistance
15.32services" means accounting and tax
15.33preparation services provided by volunteers
15.34to low-income and disadvantaged Minnesota
15.35residents to help them file federal and
16.1state income tax returns and Minnesota
16.2property tax refund claims and may include
16.3providing personal representation before
16.4the Department of Revenue and Internal
16.5Revenue Service.
16.6
Subd. 3.Accounts Receivable Management
20,322,000
22,179,000
16.7$1,750,000 the first year and $3,110,000
16.8the second year are for additional activities
16.9to identify and collect tax liabilities from
16.10individuals and businesses that currently
16.11do not pay all taxes owed. This initiative
16.12is expected to result in new general fund
16.13revenues of $60,000,000 for the biennium
16.14ending June 30, 2009.

16.15
Sec. 17. GAMBLING CONTROL
$
2,869,000
$
2,940,000
16.16These appropriations are from the lawful
16.17gambling regulation account in the special
16.18revenue fund.

16.19
Sec. 18. RACING COMMISSION
$
1,130,000
$
899,000
16.20(a) These appropriations are from racing
16.21and card playing regulation accounts in the
16.22special revenue fund.
16.23(b) $295,000 the first year and $64,000 the
16.24second year and thereafter are for information
16.25technology improvements implemented in
16.26consultation with the Office of Enterprise
16.27Technology as part of the small agency
16.28technology initiative.

16.29
Sec. 19. STATE LOTTERY
16.30Notwithstanding Minnesota Statutes, section
16.31349A.10, subdivision 3, the operating budget
17.1must not exceed $27,378,000 in fiscal year
17.22008 and $28,141,000 in fiscal year 2009.

17.3
Sec. 20. TORT CLAIMS
$
161,000
$
161,000
17.4To be spent by the commissioner of finance.
17.5If the appropriation for either year is
17.6insufficient, the appropriation for the other
17.7year is available for it.

17.8
17.9
Sec. 21. MINNESOTA STATE RETIREMENT
SYSTEM
17.10
Subdivision 1.Total Appropriation
$
1,608,000
$
1,649,000
17.11The amounts that may be spent for each
17.12purpose are specified in the following
17.13subdivisions.
17.14
Subd. 2.Legislators
1,170,000
1,200,000
17.15Under Minnesota Statutes, sections 3A.03,
17.16subdivision 2; 3A.04, subdivisions 3 and 4;
17.17and 3A.115.
17.18
Subd. 3. Constitutional Officers
438,000
449,000
17.19Under Minnesota Statutes, section 352C.001.
17.20If an appropriation in this section for either
17.21year is insufficient, the appropriation for the
17.22other year is available for it.

17.23
17.24
Sec. 22. MINNEAPOLIS EMPLOYEES
RETIREMENT FUND
$
9,000,000
$
9,000,000
17.25These amounts are estimated to be needed
17.26under Minnesota Statutes, section 422A.101,
17.27subdivision 3.

17.28
17.29
Sec. 23. TEACHERS RETIREMENT
ASSOCIATION
$
15,800,000
$
15,800,000
17.30The amounts estimated to be needed are as
17.31follows:
18.1
18.2
18.3
(a) Special direct state aid authorized under
Minnesota Statutes, section 354A.12, subdivisions
3a and 3c.
13,300,000
13,300,000
18.4
18.5
18.6
(b) Special direct state matching aid authorized
under Minnesota Statutes, section 354A.12,
subdivision 3b.
2,500,000
2,500,000

18.7
18.8
Sec. 24. ST. PAUL TEACHERS
RETIREMENT FUND
$
2,967,000
$
2,967,000
18.9The amounts estimated to be needed for
18.10special direct state aid to first class city
18.11teachers retirement funds authorized under
18.12Minnesota Statutes, section 354A.12,
18.13subdivisions 3a and 3c.

18.14
Sec. 25. AMATEUR SPORTS COMMISSION
$
370,000
$
372,000
18.15(a) Of this amount, $67,000 each year is to
18.16be used for an additional event development
18.17position. This is a onetime appropriation.
18.18The base budget for the Amateur Sports
18.19Commission shall be $220,000 in fiscal year
18.202010 and $220,000 in fiscal year 2011.
18.21(b) The amount available for appropriation
18.22to the commission under Laws 2005, chapter
18.23156, article 2, section 43, is reduced in the
18.24first year and the second year by the amounts
18.25appropriated in this section.

18.26
18.27
Sec. 26. COUNCIL ON BLACK
MINNESOTANS
$
325,000
$
333,000

18.28
18.29
Sec. 27. COUNCIL ON CHICANO/LATINO
AFFAIRS
$
308,000
$
314,000

18.30
18.31
Sec. 28. COUNCIL ON ASIAN-PACIFIC
MINNESOTANS
$
289,000
$
289,000

18.32
Sec. 29. INDIAN AFFAIRS COUNCIL
$
664,000
$
493,000
19.1(a) $80,000 in the first year is for the
19.2acquisition of an Indian burial site in
19.3Becker County. The Indian Affairs Council
19.4shall solicit donations from federal, state,
19.5nonprofit, private, and tribal sources for this
19.6purpose. This is a onetime appropriation and
19.7is available for expenditure until June 30,
19.82009.
19.9(b) $100,000 in the first year is for transfer to
19.10the director of the Minnesota Office of Higher
19.11Education for a grant for the Dakota/Ojibwe
19.12Language Revitalization Project to expand
19.13an existing pilot project to promote activities
19.14and programs that are specific to promoting
19.15revitalization of indigenous language for
19.16American Indian children who do not live
19.17on an Indian reservation. The pilot project
19.18shall focus on developing programs that
19.19meet the language needs of children in
19.20prekindergarten through grade 12. This is a
19.21onetime appropriation.

19.22
19.23
Sec. 30. GENERAL CONTINGENT
ACCOUNTS
$
1,000,000
$
500,000
19.24
Appropriations by Fund
19.25
2008
2009
19.26
General
500,000
-0-
19.27
19.28
State Government
Special Revenue
400,000
400,000
19.29
19.30
Workers'
Compensation
100,000
100,000
19.31(a) The appropriations in this section
19.32may only be spent with the approval of
19.33the governor after consultation with the
19.34Legislative Advisory Commission pursuant
19.35to Minnesota Statutes, section 3.30.
20.1(b) If an appropriation in this section for
20.2either year is insufficient, the appropriation
20.3for the other year is available for it.
20.4(c) If a contingent account appropriation
20.5is made in one fiscal year, it should be
20.6considered a biennial appropriation.

20.7    Sec. 31. MANAGERIAL POSITION REDUCTIONS.
20.8    The governor must reduce the number of deputy commissioners, assistant
20.9commissioners, and positions designated as unclassified under authority of Minnesota
20.10Statutes, section 43A.08, subdivision 1a, by an amount that will generate savings to the
20.11general fund of $7,292,000 in the biennium ending June 30, 2009, and $7,292,000 in the
20.12biennium ending June 30, 2011.

20.13    Sec. 32. BALANCE CARRIED FORWARD.
20.14    Notwithstanding Minnesota Statutes, section 16A.1522, subdivision 4, any positive
20.15unrestricted general fund budgetary balance as of June 30, 2007, is carried forward to the
20.16fiscal year ending June 30, 2008.

20.17ARTICLE 2
20.18STATE GOVERNMENT OPERATIONS

20.19    Section 1. Minnesota Statutes 2006, section 3.303, is amended by adding a subdivision
20.20to read:
20.21    Subd. 8. Ethnic heritage and new Americans. The commission shall undertake
20.22activities it determines are necessary to assist state government to foster an understanding
20.23and appreciation of ethnic and cultural diversity in Minnesota, to identify underutilized
20.24resources within the immigrant community, and to facilitate the full participation of
20.25immigrants in social, cultural, and political life in this state. The commission may
20.26appoint a working group under section 3.305, subdivision 6, to assist the commission in
20.27these duties. A working group under this subdivision may include legislators and public
20.28members. The commission may provide compensation for public members as provided
20.29in section 15.0575. In performing duties under this subdivision, the commission shall
20.30collaborate with the councils established in sections 3.9223, 3.9225, and 3.9226. This
20.31subdivision expires June 30, 2009.

21.1    Sec. 2. Minnesota Statutes 2006, section 3.303, is amended by adding a subdivision to
21.2read:
21.3    Subd. 9. Preparedness for terrorism and disasters. The commission shall
21.4undertake activities it determines are necessary to advise the legislature and oversee
21.5executive activities on issues related to homeland security, emergency management,
21.6man-made and natural disasters, terrorism, bioterrorism, public health emergencies, and
21.7vulnerabilities in public and private infrastructures. The commission may appoint a
21.8working group under section 3.305, subdivision 6, to assist the commission in these duties.
21.9A working group under this subdivision may include legislators and public members.
21.10The commission may provide compensation for public members as provided in section
21.1115.0575. This subdivision expires June 30, 2011.

21.12    Sec. 3. Minnesota Statutes 2006, section 4.035, subdivision 3, is amended to read:
21.13    Subd. 3. Expiration date. Unless an earlier date is specified by statute or by
21.14executive order, an executive order shall expire 90 days after the date that the governor
21.15who issued the order vacates leaves office.
21.16EFFECTIVE DATE.This section is effective the day following final enactment.

21.17    Sec. 4. [4.60] POET LAUREATE.
21.18    (a) The position of poet laureate of the state of Minnesota is established. The
21.19Minnesota Humanities Commission must solicit nominations for the poet laureate
21.20appointment and must make recommendations to the governor. After receiving
21.21recommendations from the Minnesota Humanities Commission, the governor shall
21.22appoint a state poet laureate and conduct appropriate ceremonies to honor the person
21.23appointed. The person appointed as poet laureate continues to serve in this position until
21.24the governor appoints another person.
21.25    (b) State agencies and officers are encouraged to use the services of the poet laureate
21.26for appropriate ceremonies and celebrations.

21.27    Sec. 5. Minnesota Statutes 2006, section 5.12, subdivision 1, is amended to read:
21.28    Subdivision 1. Fees. The secretary of state shall charge a fee of $5 for each
21.29certificate or certification of a copy of any document filed in the Office of the Secretary
21.30of State. The secretary of state shall charge a fee of $3 for a copy of an original filing of
21.31a corporation, limited partnership, assumed name, or trade or service mark, or for the
21.32complete record of a certificate of assumed name. The secretary of state shall charge a
21.33fee of $3 for a copy of any or all subsequent filings of a corporation, limited partnership,
22.1assumed name, or trade or service mark. The secretary of state shall charge a fee of $1 per
22.2page for copies of other nonuniform commercial code documents filed with the secretary of
22.3state. At the time of filing, the secretary of state may provide at the public counter, without
22.4charge, a copy of a filing, ten or fewer pages in length, to the person making the filing.

22.5    Sec. 6. [5.32] TEMPORARY TECHNOLOGY SURCHARGE.
22.6    Subdivision 1. Surcharge. For fiscal years 2008 and 2009, the following technology
22.7surcharges are imposed on the filing fees required under the following statutes:
22.8    (1) $25 for articles of incorporation filed under section 302A.151;
22.9    (2) $25 for articles of organization filed under section 322B.17;
22.10    (3) $25 for applications for certificates of authority to transact business in Minnesota
22.11filed under section 303.06;
22.12    (4) $20 for annual reports filed by non-Minnesota corporations under section
22.13303.14; and
22.14    (5) $50 for reinstatements to authority to transact business in Minnesota filed under
22.15section 303.19.
22.16    Subd. 2. Deposit. The surcharges listed in subdivision 1 shall be deposited into the
22.17uniform commercial code account.
22.18    Subd. 3. Expiration. This section expires June 30, 2009.

22.19    Sec. 7. [11A.27] REPORT ON INVESTMENT CONSULTANT ACTIVITIES
22.20AND DELIVERABLES.
22.21    (a) Annually, on or before November 1, the State Board of Investment shall file a
22.22report with the Legislative Reference Library on the activities and work product during
22.23that year of any investment consultants retained by the board.
22.24    (b) The report must include the following items:
22.25    (1) the total contract fee paid to each investment consultant;
22.26    (2) a listing of the projects in which the investment consultant was involved; and
22.27    (3) examples of the written work product provided by the investment consultant on
22.28those projects during the report coverage period.
22.29EFFECTIVE DATE.This section is effective June 30, 2007.

22.30    Sec. 8. [13.595] GRANTS.
22.31    Subdivision 1. Definitions. For purposes of this section, the following terms have
22.32the meanings given them.
23.1    (a) "Completion of the evaluation process" means that the granting agency has
23.2completed negotiating the grant agreement with the selected grantee.
23.3    (b) "Grant agreement" has the meaning given in section 16B.97, subdivision 1.
23.4    (c) "Grantee" means a person that applies for or receives a grant.
23.5    (d) "Granting agency" means the state agency that provides the grant.
23.6    (e) "Opened" means the act that occurs once the deadline for submitting a response
23.7to a proposal to the granting agency has been reached.
23.8    (f) "Request for proposal" means the data outlining the responsibilities the granting
23.9agency wants the grantee to assume.
23.10    (g) "Response" means the data submitted by a grantee as required by a request for
23.11proposal.
23.12    Subd. 2. Request for applications. Data created by a granting agency to create a
23.13request for proposal is classified as nonpublic until the request for proposal is published.
23.14To the extent that a granting agency involves persons outside the granting agency to create
23.15the request for proposal, the data remain nonpublic in the hands of all persons who may
23.16not further disseminate any data that are created or reviewed as part of the request for
23.17proposal development. At publication, the data in the request for proposal is public.
23.18    Subd. 3. Responses to request for proposals. (a) Responses submitted by a grantee
23.19are private or nonpublic until the responses are opened. Once the responses are opened,
23.20the name and address of the grantee and the amount requested is public. All other data in a
23.21response is private or nonpublic data until completion of the evaluation process. After a
23.22granting agency has completed the evaluation process, all remaining data in the responses
23.23is public with the exception of trade secret data as defined and classified in section 13.37.
23.24A statement by a grantee that the response is copyrighted or otherwise protected does
23.25not prevent public access to the response.
23.26    (b) If all responses are rejected prior to completion of the evaluation process,
23.27all data, other than that made public at the opening, remain private or nonpublic
23.28until a resolicitation of proposals results in completion of the evaluation process or a
23.29determination is made to abandon the grant. If the rejection occurs after the completion of
23.30the evaluation process, the data remain public. If a resolicitation of proposals does not
23.31occur within one year of the grant opening date, the remaining data become public.
23.32    Subd. 4. Evaluation data. (a) Data created or maintained by a granting agency as
23.33part of the evaluation process referred to in this section are protected nonpublic data until
23.34completion of the evaluation process at which time the data are public with the exception
23.35of trade secret data as defined and classified in section 13.37.
24.1    (b) If a granting agency asks individuals outside the granting agency to assist with
24.2the evaluation of the responses, the granting agency may share not public data in the
24.3responses with those individuals. The individuals participating in the evaluation may not
24.4further disseminate the not public data they review.

24.5    Sec. 9. Minnesota Statutes 2006, section 15.06, subdivision 2, is amended to read:
24.6    Subd. 2. Term of office; successor. The term of a commissioner shall end with the
24.7term of the office of governor. If the appointing authority is the governor In addition, the
24.8term shall end on the date the governor who appointed the commissioner if the governor
24.9vacates office. The appointing authority shall submit to the president of the senate
24.10the name of an appointee as permanent commissioner as provided by section 15.066,
24.11subdivision 2
, within 45 legislative days after the end of the term of a commissioner
24.12and within 45 legislative days after the occurrence of a vacancy. The appointee shall
24.13take office as permanent commissioner when the senate notifies the appointing authority
24.14that it has consented to the appointment. A commissioner shall serve at the pleasure of
24.15the appointing authority.
24.16EFFECTIVE DATE.This section is effective the day following final enactment.

24.17    Sec. 10. Minnesota Statutes 2006, section 15B.17, subdivision 1, is amended to read:
24.18    Subdivision 1. Proposals. (a) Before a state agency or other public body develops,
24.19to submit to the legislature and the governor, a budget proposal or plans for capital
24.20improvements within the Capitol Area to submit to the legislature and the governor,
24.21it must consult with the board.
24.22    (b) The public body must provide enough money for the board's review and planning
24.23if the board decides its review and planning services are necessary. Money received by the
24.24board under this subdivision is deposited in the special revenue fund and appropriated to
24.25the board.

24.26    Sec. 11. Minnesota Statutes 2006, section 16A.102, subdivision 4, is amended to read:
24.27    Subd. 4. Reporting information. When updated information is available At
24.28the time of a state revenue and expenditure forecast as specified in section 16A.103,
24.29subdivision 1
, and after the completion of a legislative session, the Department of Finance
24.30must report on revenue relative to personal income as specified in subdivision 1. The
24.31information must specify (1) the share of personal income to be collected in taxes and
24.32other revenues to pay for state and local government services and (2) the division of that
24.33revenue between state and local government revenues.

25.1    Sec. 12. Minnesota Statutes 2006, section 16A.103, subdivision 1e, is amended to read:
25.2    Subd. 1e. Economic information. The commissioner must review economic
25.3information including economic forecasts with legislative fiscal staff no later than two
25.4weeks before the forecast is released. The commissioner must invite the chairs and lead
25.5minority members of the senate State Government Finance Committee and the house
25.6Ways and Means Committee, and legislative fiscal staff to attend any meetings held with
25.7outside economic advisors. The commissioner must provide legislative fiscal staff with
25.8monthly economic forecast information received from outside sources.

25.9    Sec. 13. Minnesota Statutes 2006, section 16A.1286, subdivision 2, is amended to read:
25.10    Subd. 2. Billing procedures. The commissioner may bill up to $7,520,000 in
25.11each fiscal year for statewide systems services provided to state agencies, judicial branch
25.12agencies, the University of Minnesota, the Minnesota State Colleges and Universities,
25.13and other entities. Billing must be based only on usage of services relating to statewide
25.14systems provided by the Intertechnologies Division. Each agency shall transfer from
25.15agency operating appropriations to the statewide systems account the amount billed by
25.16the commissioner. Billing policies and procedures related to statewide systems services
25.17must be developed by the commissioner in consultation with the commissioners of
25.18employee relations and administration, the University of Minnesota, and the Minnesota
25.19State Colleges and Universities.

25.20    Sec. 14. Minnesota Statutes 2006, section 16A.695, subdivision 2, is amended to read:
25.21    Subd. 2. Leases and management contracts. (a) A public officer or agency that
25.22is authorized by law to lease or enter into a management contract with respect to state
25.23bond financed property shall comply with this subdivision. A reference to a lease or
25.24management contract in this subdivision includes any amendments, modifications, or
25.25alterations to the referenced lease or management contract and refers to the lease wherein
25.26the public officer or agency is the lessor of the state bond financed property and the other
25.27contracting party is the lessee.
25.28    (b) The lease or management contract may be entered into for the express purpose of
25.29carrying out a governmental program established or authorized by law and established by
25.30official action of the contracting public officer or agency, in accordance with orders of the
25.31commissioner intended to ensure the legality and tax-exempt status of bonds issued to
25.32finance the property, and with the approval of the commissioner. A lease or management
25.33contract, including any renewals that are solely at the option of the lessee, must be for a
25.34term substantially less than the useful life of the property, but may allow renewal beyond
26.1that term upon a determination by the lessor that the lessee has demonstrated that the use
26.2continues to carry out the governmental program. If the lessor and lessee do not renew the
26.3lease or management contract and if the lessee has contributed to the land and the capital
26.4improvements on the state bond financed property, the lessor may agree to reimburse the
26.5lessee for its investment in the land and capital improvements. The reimbursement may be
26.6paid, at the option of the lessor and lessee, at the time of nonrenewal without a requirement
26.7for a prior escrow of funds or at a later date and on additional terms agreed to by the lessor
26.8and the lessee. A lease or management contract must be terminable by the contracting
26.9public officer or agency if the other contracting party defaults under the contract or if the
26.10governmental program is terminated or changed, and must provide for program oversight
26.11by the contracting public officer or agency. The expiration or termination of a lease or
26.12management agreement does not require that the state bond proceeds be repaid or that
26.13the property be sold, so long as the property continues to be operated by, or on behalf of,
26.14the public officer or agency for the intended governmental program. Money received by
26.15the public officer or agency under the lease or management contract that is not needed
26.16to pay and not authorized to be used to pay operating costs of the property, or to pay the
26.17principal, interest, redemption premiums, and other expenses when due on debt related to
26.18the property other than state bonds, must be:
26.19    (1) paid to the commissioner in the same proportion as the state bond financing is
26.20to the total public debt financing for the property, excluding debt issued by a unit of
26.21government for which it has no financial liability;
26.22    (2) deposited in the state bond fund; and
26.23    (3) used to pay or redeem or defease bonds issued to finance the property in
26.24accordance with the commissioner's order authorizing their issuance.
26.25    The money paid to the commissioner is appropriated for this purpose.
26.26    (c) With the approval of the commissioner, a lease or management contract between
26.27a city and a nonprofit corporation under section 471.191, subdivision 1, need not require
26.28the lessee to pay rentals sufficient to pay the principal, interest, redemption premiums,
26.29and other expenses when due with respect to state bonds issued to acquire and better
26.30the facilities.
26.31EFFECTIVE DATE.This section is effective retroactively from January 1, 2006,
26.32and applies to leases, grant agreements, or management agreements entered into on or
26.33after that date.

26.34    Sec. 15. Minnesota Statutes 2006, section 16A.695, subdivision 3, is amended to read:
27.1    Subd. 3. Sale of property. A public officer or agency shall not sell any state bond
27.2financed property unless the public officer or agency determines by official action that
27.3the property is no longer usable or needed by the public officer or agency to carry out
27.4the governmental program for which it was acquired or constructed, the sale is made as
27.5authorized by law, the sale is made for fair market value, and the sale is approved by the
27.6commissioner. If any state bonds issued to purchase or better the state bond financed
27.7property that is sold remain outstanding on the date of sale, the net proceeds of sale must
27.8be applied as follows:
27.9    (1) if the state bond financed property was acquired and bettered solely with state
27.10bond proceeds, the net proceeds of sale must be paid to the commissioner, and deposited
27.11in the state bond fund, and used to pay or redeem or defease the outstanding state bonds in
27.12accordance with the commissioner's order authorizing their issuance, and the proceeds are
27.13appropriated for this purpose treasury; or
27.14    (2) if the state bond financed property was acquired or bettered partly with state
27.15bond proceeds and partly with other money, the net proceeds of sale must be used: first, to
27.16pay to the state the amount of state bond proceeds used to acquire or better the property;
27.17second, to pay in full any outstanding public or private debt incurred to acquire or better
27.18the property; and third, to pay interested public and private entities, other than any
27.19public officer or agency or any private lender already paid in full, the amount of money
27.20contributed to the acquisition or betterment of the property; and fourth, any excess over the
27.21amount needed for those purposes must be divided in proportion to the shares contributed
27.22to the acquisition or betterment of the property and paid to the interested public and
27.23private entities, other than any private lender already paid in full, and the proceeds are
27.24appropriated for this purpose. In calculating the share contributed by each entity, the
27.25amount to be attributed to the owner of the property shall be the fair market value of the
27.26property that was bettered by state bond proceeds at the time the betterment began.
27.27    When all of the net proceeds of sale have been applied as provided in this
27.28subdivision, this section no longer applies to the property.
27.29EFFECTIVE DATE.This section is effective retroactively from January 1, 2006,
27.30and applies to leases, grant agreements, or management agreements entered into on or
27.31after that date.

27.32    Sec. 16. Minnesota Statutes 2006, section 16A.695, is amended by adding a
27.33subdivision to read:
27.34    Subd. 6. Match requirements. Recipients of grants from money appropriated
27.35from the bond proceeds fund may be required to demonstrate a commitment of money
28.1from nonstate sources. This matching money may be pledged payments that have been
28.2deposited into a segregated account or multiyear pledges that are converted into cash or
28.3cash equivalent through a loan or irrevocable letter of credit from a financial institution.
28.4The loan or irrevocable letter of credit may be secured by a lien on the state bond financed
28.5property.
28.6EFFECTIVE DATE.This section is effective retroactively from January 1, 2006,
28.7and applies to leases, grant agreements, or management agreements entered into on or
28.8after that date.

28.9    Sec. 17. Minnesota Statutes 2006, section 16A.695, is amended by adding a
28.10subdivision to read:
28.11    Subd. 7. Ground lease for state bond financed property. A public officer or
28.12agency, as lessee, may lease real property and improvements that are to be acquired or
28.13improved with state bond proceeds. The lease must be for a term equal to or longer than
28.14125 percent of the useful life of the property. The expiration of the lease upon the end of
28.15its term does not require that the state be repaid or that the property be sold and upon the
28.16expiration the real property and improvements are no longer state bond financed property.
28.17EFFECTIVE DATE.This section is effective retroactively from January 1, 2006,
28.18and applies to leases, grant agreements, or management agreements entered into on or
28.19after that date.

28.20    Sec. 18. Minnesota Statutes 2006, section 16A.695, is amended by adding a
28.21subdivision to read:
28.22    Subd. 8. General applicability. (a) This section establishes requirements for
28.23the receipt and use of general obligation grants and the ownership and operation of
28.24state bond-financed property. General obligation grants may only be issued and used to
28.25finance the acquisition and betterment of public lands and buildings and other public
28.26improvements of a capital nature that are used to operate a governmental program, and
28.27for predesign and design activities for specifically identified projects that involve the
28.28operation of a governmental program or activity. A general obligation grant may not be
28.29used for general operating expenses, staffing, or general master planning. A public officer
28.30or agency that is the recipient of a general obligation grant must comply with this section
28.31in its use of the general obligation grant and operation, management, lease, and sale
28.32of state bond-financed property. A public officer or agency that uses the proceeds of a
28.33general obligation grant for any unauthorized purpose or in violation of this section must
29.1immediately repay the outstanding balance of the grant to the commissioner, and a failure
29.2to comply authorizes the commissioner to recover the outstanding balance as a setoff
29.3against any state aid provided to the public officer or agency.
29.4    (b) This section does not create any new authority regarding the ownership,
29.5construction, rehabilitation, use, operation, lease management, or sale of state
29.6bond-financed property, or the operation of the governmental program that will be
29.7operated on the property. Any authority that is needed to enter into a management contract
29.8or lease of property, to sell property, or to operate a governmental program or carry out
29.9any activity contained in the law that appropriates money for a general obligation grant
29.10must be provided by as contained in some other law.
29.11EFFECTIVE DATE.This section is effective on and after July 1, 2007.

29.12    Sec. 19. Minnesota Statutes 2006, section 16A.695, is amended by adding a
29.13subdivision to read:
29.14    Subd. 9. Grant agreement. All general obligation grants must be evidenced by
29.15a grant agreement that specifies:
29.16    (1) how the general obligation grant will be used;
29.17    (2) the governmental program that will be operated on the state bond-financed
29.18property; and
29.19    (3) that the state bond-financed property must be operated in compliance with this
29.20section, all state and federal laws, and in a manner that will not cause the interest on the
29.21state general obligation bonds to be or become subject to federal income taxation for any
29.22reason. A grant agreement must comply with this section, the Minnesota Constitution,
29.23and all commissioner's orders, and also contain other provisions the commissioner of the
29.24agency making the grant deems appropriate. The commissioner shall draft and make
29.25available forms for grant agreements that satisfy the requirements of this subdivision.
29.26EFFECTIVE DATE.This section is effective on and after July 1, 2007.

29.27    Sec. 20. Minnesota Statutes 2006, section 16B.055, subdivision 1, is amended to read:
29.28    Subdivision 1. Governor's Advisory Council on Technology for People with
29.29Disabilities Federal Assistive Technology Act. (a) The Department of Administration
29.30shall serve as the lead agency to assist the Minnesota Governor's Advisory Council on
29.31Technology for People with Disabilities in carrying out all responsibilities pursuant to
29.32United States Code, title 29, section 2211 et seq., and any other responsibilities related
29.33to that program is designated as the lead agency to carry out all the responsibilities
30.1under the Assistive Technology Act of 1998, as provided by Public Law 108-364, as
30.2amended. The Minnesota Assistive Technology Advisory Council is established to fulfill
30.3the responsibilities required by the Assistive Technology Act, as provided by Public Law
30.4108-364, as amended. Because the existence of this council is required by federal law, this
30.5council does not expire and the expiration date provided in section 15.059, subdivision
30.65, does not apply.
30.7    (b) The governor shall appoint the membership of the council as required by the
30.8Assistive Technology Act of 1998, as provided by Public Law 108-364, as amended.
30.9After the governor has completed the appointments required by this subdivision, the
30.10commissioner of administration, or the commissioner's designee, shall convene the first
30.11meeting of the council following the appointments. Members shall serve two-year
30.12terms commencing July 1 of each odd-numbered year, and receive the compensation
30.13specified by the Assistive Technology Act of 1998, as provided by Public Law 108-364, as
30.14amended. The members of the council shall select their chair at the first meeting following
30.15their appointment.

30.16    Sec. 21. Minnesota Statutes 2006, section 16B.24, subdivision 5, is amended to read:
30.17    Subd. 5. Renting out state property. (a) Authority. The commissioner may rent
30.18out state property, real or personal, that is not needed for public use, if the rental is not
30.19otherwise provided for or prohibited by law. The property may not be rented out for
30.20more than five years at a time without the approval of the State Executive Council and
30.21may never be rented out for more than 25 years. A rental agreement may provide that
30.22the state will reimburse a tenant for a portion of capital improvements that the tenant
30.23makes to state real property if the state does not permit the tenant to renew the lease at
30.24the end of the rental agreement.
30.25    (b) Restrictions. Paragraph (a) does not apply to state trust fund lands, other state
30.26lands under the jurisdiction of the Department of Natural Resources, lands forfeited for
30.27delinquent taxes, lands acquired under section 298.22, or lands acquired under section
30.2841.56 which are under the jurisdiction of the Department of Agriculture.
30.29    (c) Rental of living accommodations. The commissioner shall establish rental rates
30.30for all living accommodations provided by the state for its employees. Money collected as
30.31rent by state agencies pursuant to this paragraph must be deposited in the state treasury
30.32and credited to the general fund.
30.33    (d) Lease of space in certain state buildings to state agencies. The commissioner
30.34may lease portions of the state-owned buildings in the Capitol complex, the Capitol
30.35Square Building, the Health Building, and the building at 1246 University Avenue, St.
31.1Paul, Minnesota, under the custodial control of the commissioner to state agencies and
31.2the court administrator on behalf of the judicial branch of state government and charge
31.3rent on the basis of space occupied. Notwithstanding any law to the contrary, all money
31.4collected as rent pursuant to the terms of this section shall be deposited in the state
31.5treasury. Money collected as rent to recover the bond interest costs of a building funded
31.6from the state bond proceeds fund shall be credited to the general fund. Money collected
31.7as rent to recover the depreciation costs of a building funded from the state bond proceeds
31.8fund and money collected as rent to recover capital expenditures from capital asset
31.9preservation and replacement appropriations and statewide building access appropriations
31.10shall be credited to a segregated asset preservation and replacement account in a special
31.11revenue fund. Fifty percent of the money credited to the account each fiscal year must
31.12be transferred to the general fund. The remaining money in the account is appropriated
31.13to the commissioner to be expended for asset preservation projects as determined by the
31.14commissioner. Money collected as rent to recover the depreciation and interest costs of
31.15a building built with other state dedicated funds shall be credited to the dedicated fund
31.16which funded the original acquisition or construction. All other money received shall be
31.17credited to the general services revolving fund.
31.18    (e) Lease of space in Andersen and Freeman buildings. The commissioner may
31.19lease space in the Elmer L. Andersen and Orville L. Freeman buildings to state agencies
31.20and charge rent on the basis of space occupied. Money collected as rent under this
31.21paragraph to fund future building repairs must be credited to a segregated account for each
31.22building in the special revenue fund and is appropriated to the commissioner to make
31.23the repairs. When the state acquires title to each building, the account for that building
31.24must be abolished and any balance remaining in the account must be transferred to the
31.25appropriate asset preservation and replacement account created under paragraph (d).

31.26    Sec. 22. Minnesota Statutes 2006, section 16B.35, subdivision 1, is amended to read:
31.27    Subdivision 1. Percent of appropriations for art. An appropriation for the
31.28construction or alteration of any state building may contain an amount not to exceed
31.29the lesser of $100,000 or one percent of the total appropriation for the building for the
31.30acquisition of works of art, excluding landscaping, which may be an integral part of the
31.31building or its grounds, attached to the building or grounds or capable of being displayed
31.32in other state buildings. If the appropriation for works of art is limited by the $100,000
31.33cap in this section, the appropriation for the construction or alteration of the building must
31.34be reduced to reflect the reduced amount that will be spent on works of art. Money used
31.35for this purpose is available only for the acquisition of works of art to be exhibited in areas
32.1of a building or its grounds accessible, on a regular basis, to members of the public. No
32.2more than ten percent of the total amount available each fiscal year under this subdivision
32.3may be used for administrative expenses, either by the commissioner of administration or
32.4by any other entity to whom the commissioner delegates administrative authority. For the
32.5purposes of this section "state building" means a building the construction or alteration of
32.6which is paid for wholly or in part by the state.
32.7EFFECTIVE DATE.This section is effective July 1, 2007. The repeal of the
32.8$100,000 limit in this section applies to appropriations made before, on, or after that date.

32.9    Sec. 23. [16B.97] GRANTS MANAGEMENT.
32.10    Subdivision 1. Grant agreement. (a) A grant agreement is a written instrument or
32.11electronic document defining a legal relationship between a granting agency and a grantee
32.12when the principal purpose of the relationship is to transfer cash or something of value
32.13to the recipient to support a public purpose authorized by law instead of acquiring by
32.14professional or technical contract, purchase, lease, or barter property or services for the
32.15direct benefit or use of the granting agency.
32.16    (b) This section does not apply to capital project grants to political subdivisions as
32.17defined by section 16A.86.
32.18    Subd. 2. Grants governance. The commissioner shall provide leadership and
32.19direction for policy related to grants management in Minnesota in order to foster more
32.20consistent, streamlined interaction between executive agencies, funders, and grantees that
32.21will enhance access to grant opportunities and information and lead to greater program
32.22accountability and transparency. The commissioner has the duties and powers stated in this
32.23section. An executive agency must do what the commissioner requires under this section.
32.24    Subd. 3. Discretionary powers. The commissioner has the authority to:
32.25    (1) review grants management practices and propose policy and procedure
32.26improvements to the governor, legislature, executive agencies, and the federal government;
32.27    (2) sponsor, support, and facilitate innovative and collaborative grants management
32.28projects with public and private organizations;
32.29    (3) review, recommend, and implement alternative strategies for grants management;
32.30    (4) collect and disseminate information, issue reports relating to grants management,
32.31and sponsor and conduct conferences and studies; and
32.32    (5) participate in conferences and other appropriate activities related to grants
32.33management issues.
32.34    Subd. 4. Duties. (a) The commissioner shall:
33.1    (1) create general grants management policies and procedures that are applicable to
33.2all executive agencies. The commissioner may approve exceptions to these policies and
33.3procedures for particular grant programs. Exceptions shall expire or be renewed after five
33.4years. Executive agencies shall retain management of individual grants programs;
33.5    (2) provide a central point of contact concerning statewide grants management
33.6policies and procedures;
33.7    (3) serve as a resource to executive agencies in such areas as training, evaluation,
33.8collaboration, and best practices in grants management;
33.9    (4) ensure grants management needs are considered in the development, upgrade,
33.10and use of statewide administrative systems and leverage existing technology wherever
33.11possible;
33.12    (5) oversee and approve future professional and technical service contracts and
33.13other information technology spending related to executive agency grants management
33.14activities;
33.15    (6) provide a central point of contact for comments about executive agencies
33.16violating statewide grants governance policies and about fraud and waste in grants
33.17processes;
33.18    (7) forward received comments to the appropriate agency for further action, and may
33.19follow up as necessary;
33.20    (8) provide a single listing of all available executive agency competitive grant
33.21opportunities and resulting grant recipients;
33.22    (9) selectively review development and implementation of executive agency grants,
33.23policies, and practices; and
33.24    (10) selectively review executive agency compliance with best practices.
33.25    (b) The commissioner may determine that it is cost-effective for agencies to develop
33.26and use shared grants management technology systems. This system would be governed
33.27under section 16E.01, subdivision 3, paragraph (b).

33.28    Sec. 24. [16B.98] GRANTS MANAGEMENT PROCESS.
33.29    Subdivision 1. Limitation. As a condition of receiving a grant from an appropriation
33.30of state funds, the recipient of the grant must agree to minimize administrative costs. The
33.31granting agency is responsible for negotiating appropriate limits to these costs so that the
33.32state derives the optimum benefit for grant funding.
33.33    Subd. 2. Ethical practices and conflict of interest. An employee of the executive
33.34branch involved directly or indirectly in grants processes, at any level, is subject to the
33.35code of ethics in section 43A.38.
34.1    Subd. 3. Conflict of interest. (a) The commissioner must develop policies
34.2regarding code of ethics and conflict of interest designed to prevent conflicts of interest for
34.3employees, committee members, or others involved in the recommendation, awarding,
34.4and administration of grants. The policies must apply to employees who are directly or
34.5indirectly in the grants process, which may include the following:
34.6    (1) developing request for proposals or evaluation criteria;
34.7    (2) drafting, recommending, awarding, amending, revising, or entering into grant
34.8agreements;
34.9    (3) evaluating or monitoring performance; or
34.10    (4) authorizing payments.
34.11    (b) The policies must include:
34.12    (1) a process to make all parties to the grant aware of policies and laws relating to
34.13conflict of interest, and training on how to avoid and address potential conflicts; and
34.14    (2) a process under which those who have a conflict of interest or a potential conflict
34.15of interest must disclose the matter.
34.16    (c) If the employee, appointing authority, or commissioner determines that a conflict
34.17of interest exists, the matter shall be assigned to another employee who does not have a
34.18conflict of interest. If it is not possible to assign the matter to an employee who does not
34.19have a conflict of interest, interested personnel shall be notified of the conflict and the
34.20employee may proceed with the assignment.
34.21    Subd. 4. Reporting of violations. A state employee who discovers evidence
34.22of violation of laws or rules governing grants is encouraged to report the violation or
34.23suspected violation to the employee's supervisor, the commissioner or the commissioner's
34.24designee, or the legislative auditor. The legislative auditor shall report to the Legislative
34.25Audit Commission if there are multiple complaints about the same agency. The auditor's
34.26report to the Legislative Audit Commission under this section must disclose only the
34.27number and type of violations alleged. An employee making a good faith report under this
34.28section has the protections provided for under section 181.932, prohibiting the employer
34.29from discriminating against the employee.
34.30    Subd. 5. Creation and validity of grant agreements. (a) A grant agreement is
34.31not valid and the state is not bound by the grant unless:
34.32    (1) the grant has been executed by the head of the agency or a delegate who is
34.33party to the grant; and
34.34    (2) the accounting system shows an encumbrance for the amount of the grant in
34.35accordance with policy approved by the commissioner.
35.1    (b) The combined grant agreement and amendments must not exceed five years
35.2without specific, written approval by the commissioner according to established policy,
35.3procedures, and standards, or unless the commissioner determines that a longer duration is
35.4in the best interest of the state.
35.5    (c) A fully executed copy of the grant agreement with all amendments and other
35.6required records relating to the grant must be kept on file at the granting agency for a time
35.7equal to that required of grantees in subdivision 8.
35.8    (d) Grant agreements must comply with policies established by the commissioner
35.9for minimum grant agreement standards and practices.
35.10    (e) The attorney general may periodically review and evaluate a sample of state
35.11agency grants to ensure compliance with applicable laws.
35.12    Subd. 6. Grant administration. A granting agency shall diligently administer
35.13and monitor any grant it has entered into.
35.14    Subd. 7. Grant payments. Payments to the grantee may not be issued until the
35.15grant agreement is fully executed.
35.16    Subd. 8. Audit. (a) A grant agreement made by an executive agency must include an
35.17audit clause that provides that the books, records, documents, and accounting procedures
35.18and practices of the grantee or other party that are relevant to the grant or transaction are
35.19subject to examination by the granting agency and either the legislative auditor or the state
35.20auditor, as appropriate, for a minimum of six years from the grant agreement end date,
35.21receipt and approval of all final reports, or the required period of time to satisfy all state
35.22and program retention requirements, whichever is later. If a grant agreement does not
35.23include an express audit clause, the audit authority under this subdivision is implied.
35.24    (b) If the granting agency is a local unit of government, and the governing body of
35.25the local unit of government requests that the state auditor examine the books, records,
35.26documents, and accounting procedures and practices of the grantee or other party
35.27according to this subdivision, the granting agency shall be liable for the cost of the
35.28examination. If the granting agency is a local unit of government, and the grantee or other
35.29party requests that the state auditor examine all books, records, documents, and accounting
35.30procedures and practices related to the grant, the grantee or other party that requested the
35.31examination shall be liable for the cost of the examination.
35.32    Subd. 9. Authority of attorney general. The attorney general may pursue
35.33remedies available by law to avoid the obligation of an agency to pay under a grant or to
35.34recover payments made if activities under the grant are so unsatisfactory, incomplete, or
35.35inconsistent that payment would involve unjust enrichment. The contrary opinion of the
35.36granting agency does not affect the power of the attorney general under this subdivision.
36.1    Subd. 10. Grants with Indian tribes and bands. Notwithstanding any other law,
36.2an agency may not require an Indian tribe or band to deny its sovereignty as a requirement
36.3or condition of a grant with an agency.

36.4    Sec. 25. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision
36.5to read:
36.6    Subd. 3a. Best and final offer. "Best and final offer" means an optional step in
36.7the solicitation process in which responders are requested to improve their response by
36.8methods including, but not limited to, the reduction of cost, clarification or modification of
36.9the response, or the provision of additional information.

36.10    Sec. 26. Minnesota Statutes 2006, section 16C.02, subdivision 4, is amended to read:
36.11    Subd. 4. Best value. "Best value" describes a result intended in the acquisition of all
36.12goods and services. Price must be one of the evaluation criteria when acquiring goods
36.13and services. Other evaluation criteria may include, but are not limited to, environmental
36.14considerations, quality, and vendor performance. In achieving "best value" strategic
36.15sourcing tools, including but not limited to best and final offers, negotiations, contract
36.16consolidation, product standardization, and mandatory-use enterprise contracts shall be
36.17used at the commissioner's discretion.

36.18    Sec. 27. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision
36.19to read:
36.20    Subd. 6a. Enterprise procurement. "Enterprise procurement" means the process
36.21undertaken by the commissioner to leverage economies of scale of multiple end users to
36.22achieve cost savings and other favorable terms in contracts for goods and services.

36.23    Sec. 28. Minnesota Statutes 2006, section 16C.02, subdivision 12, is amended to read:
36.24    Subd. 12. Request for proposal or RFP. "Request for proposal" or "RFP" means a
36.25solicitation in which it is not advantageous to set forth all the actual, detailed requirements
36.26at the time of solicitation and responses are subject to negotiation negotiated to achieve
36.27best value for the state.

36.28    Sec. 29. Minnesota Statutes 2006, section 16C.02, subdivision 14, is amended to read:
36.29    Subd. 14. Response. "Response" means the offer received from a vendor in
36.30response to a solicitation. A response includes submissions commonly referred to as
36.31"offers," "bids," "quotes," or "proposals.," "best and final offers," or "negotiated offers."

37.1    Sec. 30. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision
37.2to read:
37.3    Subd. 20. Strategic sourcing. "Strategic sourcing" means methods used to
37.4analyze and reduce spending on goods and services, including but not limited to
37.5spend analysis, product standardization, contract consolidation, negotiations, multiple
37.6jurisdiction purchasing alliances, reverse and forward auctions, life-cycle costing, and
37.7other techniques.

37.8    Sec. 31. Minnesota Statutes 2006, section 16C.03, subdivision 2, is amended to read:
37.9    Subd. 2. Rulemaking authority. Subject to chapter 14, the commissioner may
37.10adopt rules, consistent with this chapter and chapter 16B, relating to the following topics:
37.11    (1) procurement process including solicitations and responses to solicitations, bid
37.12security, vendor errors, opening of responses, award of contracts, tied bids, and award
37.13protest process;
37.14    (2) contract performance and failure to perform;
37.15    (3) authority to debar or suspend vendors, and reinstatement of vendors;
37.16    (4) contract cancellation;
37.17    (5) procurement from rehabilitation facilities; and
37.18    (6) organizational conflicts of interest.

37.19    Sec. 32. Minnesota Statutes 2006, section 16C.03, subdivision 4, is amended to read:
37.20    Subd. 4. Contracting authority. The commissioner shall conduct all contracting by,
37.21for, and between agencies and perform all contract management and review functions for
37.22contracts, except those functions specifically delegated to be performed by the contracting
37.23agency, the attorney general, or otherwise provided for by law. The commissioner may
37.24require that agency staff participate in the development of enterprise procurements
37.25including the development of product standards, specifications and other requirements.

37.26    Sec. 33. Minnesota Statutes 2006, section 16C.03, subdivision 8, is amended to read:
37.27    Subd. 8. Policy and procedures. The commissioner is authorized to issue policies,
37.28procedures, and standards applicable to all acquisition activities by and for agencies.
37.29Consistent with the authority specified in this chapter, the commissioner shall develop
37.30and implement policies, procedures, and standards ensuring the optimal use of strategic
37.31sourcing techniques.

37.32    Sec. 34. Minnesota Statutes 2006, section 16C.03, subdivision 16, is amended to read:
38.1    Subd. 16. Delegation of duties. The commissioner may delegate duties imposed by
38.2this chapter to the head of an agency and to any subordinate of the agency head. Delegated
38.3duties shall be exercised in the name of the commissioner and under the commissioner's
38.4direct supervision and control. A delegation of duties may include, but is not limited to,
38.5allowing individuals within agencies to acquire goods, services, and utilities within dollar
38.6limitations and for designated types of acquisitions. Delegation of contract management
38.7and review functions must be filed with the secretary of state and may not, except with
38.8respect to delegations within the Department of Administration, exceed two years in
38.9duration. The commissioner may withdraw any delegation at the commissioner's sole
38.10discretion. The commissioner may require an agency head or subordinate to accept
38.11delegated responsibility to procure goods or services intended for the exclusive use of the
38.12agency receiving the delegation.

38.13    Sec. 35. [16C.046] WEB SITE WITH SEARCHABLE DATABASE ON STATE
38.14CONTRACTS AND GRANTS.
38.15    (a) The commissioner of administration must maintain a Web site with a searchable
38.16database providing the public with information on state contracts, including grant
38.17contracts. The database must include the following information for each state contract
38.18valued in excess of $25,000:
38.19    (1) the name and address of the entity receiving the contract;
38.20    (2) the name of the agency entering into the contract;
38.21    (3) whether the contract is:
38.22    (i) for goods;
38.23    (ii) for professional or technical services;
38.24    (iii) for services other than professional and technical services; or
38.25    (iv) a grant;
38.26    (4) a brief statement of the purpose of the contract or grant;
38.27    (5) the amount of the contract or grant and the fund from which this amount will be
38.28paid; and
38.29    (6) the dollar value of state contracts, other than grants, the entity has received in each
38.30fiscal year and the dollar value of state grants the entity has received in each fiscal year.
38.31    (b) Required information on a new contract or grant must be entered into the
38.32database within 30 days of the time the contract is entered into.
38.33    (c) For purposes of this section, a "grant" is a contract between a state agency and
38.34a recipient, the primary purpose of which is to transfer cash or a thing of value to the
38.35recipient to support a public purpose. Grant does not include payments to units of local
39.1government, payments to state employees, or payments made under laws providing for
39.2assistance to individuals.
39.3    (d) The database must include information on grants and contracts entered into
39.4beginning with fiscal year 2008 funds, and must retain that data for ten years.
39.5EFFECTIVE DATE.This section is effective January 1, 2008.

39.6    Sec. 36. Minnesota Statutes 2006, section 16C.05, subdivision 1, is amended to read:
39.7    Subdivision 1. Agency cooperation. Agencies shall fully cooperate with the
39.8commissioner in the management and review of state contracts and in the development
39.9and implementation of strategic sourcing techniques.

39.10    Sec. 37. Minnesota Statutes 2006, section 16C.05, subdivision 2, is amended to read:
39.11    Subd. 2. Creation and validity of contracts. (a) A contract is not valid and the state
39.12is not bound by it and no agency, without the prior written approval of the commissioner
39.13granted pursuant to subdivision 2a, may authorize work to begin on it unless:
39.14    (1) it has first been executed by the head of the agency or a delegate who is a party
39.15to the contract;
39.16    (2) it has been approved by the commissioner; and
39.17    (3) the accounting system shows an encumbrance for the amount of the contract
39.18liability, except as allowed by policy approved by the commissioner and commissioner of
39.19finance for routine, low-dollar procurements.
39.20    (b) The combined contract and amendments must not exceed five years without
39.21specific, written approval by the commissioner according to established policy, procedures,
39.22and standards, or unless otherwise provided for by law. The term of the original contract
39.23must not exceed two years unless the commissioner determines that a longer duration is
39.24in the best interest of the state.
39.25    (c) Grants, interagency agreements, purchase orders, work orders, and annual plans
39.26need not, in the discretion of the commissioner and attorney general, require the signature
39.27of the commissioner and/or the attorney general. A signature is not required for work
39.28orders and amendments to work orders related to Department of Transportation contracts.
39.29Bond purchase agreements by the Minnesota Public Facilities Authority do not require
39.30the approval of the commissioner.
39.31    (d) Amendments to contracts must entail tasks that are substantially similar to
39.32those in the original contract or involve tasks that are so closely related to the original
39.33contract that it would be impracticable for a different contractor to perform the work. The
39.34commissioner or an agency official to whom the commissioner has delegated contracting
40.1authority under section 16C.03, subdivision 16, must determine that an amendment would
40.2serve the interest of the state better than a new contract and would cost no more.
40.3    (e) A fully executed copy of every contract, amendments to the contract, and
40.4performance evaluations relating to the contract must be kept on file at the contracting
40.5agency for a time equal to that specified for contract vendors and other parties in
40.6subdivision 5.
40.7    (f) The attorney general must periodically review and evaluate a sample of state
40.8agency contracts to ensure compliance with laws.

40.9    Sec. 38. Minnesota Statutes 2006, section 16C.08, is amended by adding a subdivision
40.10to read:
40.11    Subd. 1a. Enterprise procurement. Notwithstanding section 15.061 or any
40.12other law, the commissioner shall, to the fullest extent practicable, conduct enterprise
40.13procurements that result in the establishment of professional or technical contracts for
40.14use by multiple state agencies. The commissioner is authorized to mandate use of any
40.15contract entered into as a result of an enterprise procurement process. Agencies shall fully
40.16cooperate in the development and use of contracts entered into under this section.

40.17    Sec. 39. Minnesota Statutes 2006, section 16C.08, subdivision 2, is amended to read:
40.18    Subd. 2. Duties of contracting agency. (a) Before an agency may seek approval of
40.19a professional or technical services contract valued in excess of $5,000, it must provide
40.20the following:
40.21    (1) a description of how the proposed contract or amendment is necessary and
40.22reasonable to advance the statutory mission of the agency;
40.23    (2) a description of the agency's plan to notify firms or individuals who may be
40.24available to perform the services called for in the solicitation; and
40.25    (3) a description of the performance measures or other tools that will be used to
40.26monitor and evaluate contract performance.; and
40.27    (4) an explanation detailing, if applicable, why this procurement is being pursued
40.28unilaterally by the agency and not as an enterprise procurement.
40.29    (b) In addition to paragraph (a), the agency must certify that:
40.30    (1) no current state employee is able and available to perform the services called
40.31for by the contract;
40.32    (2) the normal competitive bidding mechanisms will not provide for adequate
40.33performance of the services;
41.1    (3) reasonable efforts will be made to publicize the availability of the contract to
41.2the public;
41.3    (4) the agency will develop and implement a written plan providing for the
41.4assignment of specific agency personnel to manage the contract, including a monitoring
41.5and liaison function, the periodic review of interim reports or other indications of past
41.6performance, and the ultimate utilization of the final product of the services;
41.7    (5) the agency will not allow the contractor to begin work before the contract is fully
41.8executed unless an exception under section 16C.05, subdivision 2a, has been granted by
41.9the commissioner and funds are fully encumbered;
41.10    (6) the contract will not establish an employment relationship between the state or
41.11the agency and any persons performing under the contract; and
41.12    (7) in the event the results of the contract work will be carried out or continued by
41.13state employees upon completion of the contract, the contractor is required to include
41.14state employees in development and training, to the extent necessary to ensure that after
41.15completion of the contract, state employees can perform any ongoing work related to
41.16the same function.; and
41.17    (8) the agency will not contract out its previously eliminated jobs for four years
41.18without first considering the same former employees who are on the seniority unit layoff
41.19list who meet the minimum qualifications determined by the agency.
41.20    (c) A contract establishes an employment relationship for purposes of paragraph (b),
41.21clause (6), if, under federal laws governing the distinction between an employee and an
41.22independent contractor, a person would be considered an employee.

41.23    Sec. 40. Minnesota Statutes 2006, section 16C.08, subdivision 4, is amended to read:
41.24    Subd. 4. Reports. (a) The commissioner shall submit to the governor, the chairs of
41.25the house Ways and Means and senate Finance Committees, and the Legislative Reference
41.26Library a yearly listing of all contracts for professional or technical services executed.
41.27The report must identify the contractor, contract amount, duration, and services to be
41.28provided. The commissioner shall also issue yearly reports summarizing the contract
41.29review activities of the department by fiscal year.
41.30    (b) The fiscal year report must be submitted by September 1 of each year and must:
41.31    (1) be sorted by agency and by contractor;
41.32    (2) show the aggregate value of contracts issued by each agency and issued to each
41.33contractor;
41.34    (3) distinguish between contracts that are being issued for the first time and contracts
41.35that are being extended;
42.1    (4) state the termination date of each contract;
42.2    (5) identify services by commodity code, including topics such as contracts for
42.3training, contracts for research and opinions, and contracts for computer systems; and
42.4    (6) identify which contracts were awarded without following the solicitation process
42.5in this chapter because it was determined that there was only a single source for the
42.6services.
42.7    (c) Within 30 days of final completion of a contract over $50,000 covered by this
42.8subdivision, the head of the agency entering into the contract must submit a one-page
42.9report to the commissioner who must submit a copy to the Legislative Reference Library.
42.10The report must:
42.11    (1) summarize the purpose of the contract, including why it was necessary to enter
42.12into a contract;
42.13    (2) state the amount spent on the contract;
42.14    (3) be accompanied by the performance evaluation prepared according to subdivision
42.154a; and
42.16    (4) (3) if the contract was awarded without following the solicitation process in this
42.17chapter because it was determined that there was only a single source for the services,
42.18explain why the agency determined there was only a single source for the services.; and
42.19    (4) include a written performance evaluation of the work done under the contract.
42.20The evaluation must include an appraisal of the contractor's timeliness, quality, cost, and
42.21overall performance in meeting the terms and objectives of the contract. Contractors may
42.22request copies of evaluations prepared under this subdivision and may respond in writing.
42.23Contractor responses must be maintained with the contract file.

42.24    Sec. 41. Minnesota Statutes 2006, section 16C.08, is amended by adding a subdivision
42.25to read:
42.26    Subd. 4b. Limitations on actions. No action may be maintained by a contractor
42.27against an employee or agency who discloses information about a current or former
42.28contractor under subdivision 4, unless the contractor demonstrates by clear and convincing
42.29evidence that:
42.30    (1) the information was false and defamatory;
42.31    (2) the employee or agency knew or should have known the information was false
42.32and acted with malicious intent to injure the current or former contractor; and
42.33    (3) the information was acted upon in a manner that caused harm to the current or
42.34former contractor.

43.1    Sec. 42. [16C.086] CALL-CENTER.
43.2    An agency may not enter into a contract for operation of a call-center, or a contract
43.3whose primary purpose is to provide similar services answering or responding to telephone
43.4calls on behalf of an agency without determining if the service can be provided by state
43.5employees, and the services must be provided at offices located in the United States. For
43.6purposes of this section, "agency" includes the Minnesota State Colleges and Universities.
43.7EFFECTIVE DATE.This section is effective the day following final enactment,
43.8and applies to a contract entered into or renewed or otherwise extended after that date.

43.9    Sec. 43. Minnesota Statutes 2006, section 16C.10, subdivision 7, is amended to read:
43.10    Subd. 7. Reverse auction. (a) For the purpose of this subdivision, "reverse auction"
43.11means a purchasing process in which vendors compete to provide goods or computer
43.12services at the lowest selling price in an open and interactive environment. Reverse
43.13auctions may not be utilized to procure engineering design services or architectural
43.14services or to establish building and construction contracts under sections 16C.26 to
43.1516C.29.
43.16    (b) The provisions of sections 13.591, subdivision 3, and 16C.06, subdivision 2,
43.17do not apply when the commissioner determines that a reverse auction is the appropriate
43.18purchasing process.

43.19    Sec. 44. [16C.147] DOCUMENT IMAGING; USE OF PERSONS WITH
43.20DEVELOPMENTAL DISABILITIES.
43.21    The commissioner shall promote the use of persons with developmental disabilities
43.22to provide document imaging services for state and local government agencies.

43.23    Sec. 45. Minnesota Statutes 2006, section 16C.16, subdivision 5, is amended to read:
43.24    Subd. 5. Designation of targeted groups. (a) The commissioner of administration
43.25shall periodically designate businesses that are majority owned and operated by women,
43.26persons with a substantial physical disability, or specific minorities as targeted group
43.27businesses within purchasing categories as determined by the commissioner. A group
43.28may be targeted within a purchasing category if the commissioner determines there is a
43.29statistical disparity between the percentage of purchasing from businesses owned by
43.30group members and the representation of businesses owned by group members among all
43.31businesses in the state in the purchasing category.
43.32    (b) In addition to designations under paragraph (a), an individual business may be
43.33included as a targeted group business if the commissioner determines that inclusion is
44.1necessary to remedy discrimination against the owner based on race, gender, or disability
44.2in attempting to operate a business that would provide goods or services to public agencies.
44.3    (c) In addition to the designations under paragraphs (a) and (b), the commissioner of
44.4administration shall designate businesses that are majority owned and operated by veterans
44.5who have served in federal active service as defined in section 190.05, subdivision 5c, in
44.6support of Operation Enduring Freedom or Operation Iraqi Freedom as targeted group
44.7businesses within purchasing categories as determined by the commissioner. "Veteran"
44.8has the meaning given in section 197.447, and also includes both currently serving and
44.9honorably discharged members of the national guard and other military reserves.
44.10    (c) (d) The designations of purchasing categories and businesses under paragraphs
44.11(a) and, (b), and (c) are not rules for purposes of chapter 14, and are not subject to
44.12rulemaking procedures of that chapter.
44.13EFFECTIVE DATE.This section is effective July 1, 2007, and applies to
44.14procurement contract bid solicitations issued on and after that date.

44.15    Sec. 46. [16C.251] BEST AND FINAL OFFER.
44.16    A "best and final offer" solicitation process may not be used for building and
44.17construction contracts.

44.18    Sec. 47. Minnesota Statutes 2006, section 43A.08, subdivision 2a, is amended to read:
44.19    Subd. 2a. Temporary unclassified positions. The commissioner, upon request of
44.20an appointing authority, may authorize the temporary designation of a position in the
44.21unclassified service. The commissioner may make this authorization only for professional,
44.22managerial or supervisory positions which are fully anticipated to be of limited duration.
44.23An individual may not be employed by an appointing authority under this subdivision
44.24for more than 18 months.
44.25EFFECTIVE DATE.For individuals who are employed under section 43A.08,
44.26subdivision 2a, on the effective date of this section, the 18-month time limit under this
44.27section commences the day following final enactment.

44.28    Sec. 48. Minnesota Statutes 2006, section 43A.346, subdivision 1, is amended to read:
44.29    Subdivision 1. Definition. For purposes of this section, "state employee" means a
44.30person currently occupying a civil service position in the executive or legislative branch of
44.31state government, the Minnesota State Retirement System, or the Office of the Legislative
44.32Auditor, or a person employed by the Metropolitan Council.

45.1    Sec. 49. Minnesota Statutes 2006, section 161.1419, subdivision 8, is amended to read:
45.2    Subd. 8. Expiration. The commission expires on June 30, 2007 2012.
45.3EFFECTIVE DATE.This section is effective the day following final enactment.

45.4    Sec. 50. Minnesota Statutes 2006, section 270B.14, is amended by adding a
45.5subdivision to read:
45.6    Subd. 19. Disclosure to Department of Finance. The commissioner may disclose
45.7to the commissioner of finance returns or return information necessary in order to prepare
45.8a revenue forecast under section 16A.103.

45.9    Sec. 51. Minnesota Statutes 2006, section 270C.03, subdivision 1, is amended to read:
45.10    Subdivision 1. Powers and duties. The commissioner shall have and exercise
45.11the following powers and duties:
45.12    (1) administer and enforce the assessment and collection of taxes;
45.13    (2) make determinations, corrections, and assessments with respect to taxes,
45.14including interest, additions to taxes, and assessable penalties;
45.15    (3) use statistical or other sampling techniques consistent with generally accepted
45.16auditing standards in examining returns or records and making assessments;
45.17    (4) investigate the tax laws of other states and countries, and formulate and submit
45.18to the legislature such legislation as the commissioner may deem expedient to prevent
45.19evasions of state revenue laws and to secure just and equal taxation and improvement in
45.20the system of state revenue laws;
45.21    (5) consult and confer with the governor upon the subject of taxation, the
45.22administration of the laws in regard thereto, and the progress of the work of the
45.23department, and furnish the governor, from time to time, such assistance and information
45.24as the governor may require relating to tax matters;
45.25    (6) execute and administer any agreement with the secretary of the treasury or the
45.26Bureau of Alcohol, Tobacco, Firearms, and Explosives in the Department of Justice of the
45.27United States or a representative of another state regarding the exchange of information
45.28and administration of the state revenue laws;
45.29    (7) require town, city, county, and other public officers to report information as to the
45.30collection of taxes received from licenses and other sources, and such other information
45.31as may be needful in the work of the commissioner, in such form as the commissioner
45.32may prescribe;
45.33    (8) authorize the use of unmarked motor vehicles to conduct seizures or criminal
45.34investigations pursuant to the commissioner's authority; and
46.1    (9) maintain toll-free telephone access for taxpayer assistance for calls from
46.2locations within the state; and
46.3    (10) exercise other powers and authority and perform other duties required of or
46.4imposed upon the commissioner by law.
46.5EFFECTIVE DATE.This section is effective January 1, 2008.

46.6    Sec. 52. [270C.21] TAXPAYER ASSISTANCE GRANTS.
46.7    When the commissioner awards grants to nonprofit organizations to coordinate,
46.8facilitate, encourage, and aid in the provision of taxpayer assistance services, the
46.9commissioner must provide public notice of the grants in a timely manner so that the
46.10grant process is completed and grants are awarded by October 1, in order for recipient
46.11organizations to adequately plan expenditures for the filing season. At the time the
46.12commissioner provides public notice, the commissioner must also notify nonprofit
46.13organizations that received grants in the previous biennium.
46.14EFFECTIVE DATE.This section is effective the day following final enactment.

46.15    Sec. 53. Minnesota Statutes 2006, section 302A.821, subdivision 4, is amended to read:
46.16    Subd. 4. Penalty; reinstatement. (a) A corporation that has failed to file a
46.17registration pursuant to the requirements of subdivision 2 must be dissolved by the
46.18secretary of state as described in paragraph (b).
46.19    (b) If the corporation has not filed the registration for two consecutive during
46.20any calendar years year, the secretary of state must issue a certificate of administrative
46.21dissolution and the certificate must be filed in the Office of the Secretary of State. The
46.22secretary of state shall send notice to the corporation that the corporation has been
46.23dissolved and that the corporation may be reinstated by filing a registration and a $25 fee.
46.24The notice must be given by United States mail unless the company has indicated to the
46.25secretary of state that they are willing to receive notice by electronic notification, in which
46.26case the secretary of state may give notice by mail or the indicated means. The secretary
46.27of state shall annually inform the attorney general and the commissioner of revenue of
46.28the methods by which the names of corporations dissolved under this section during the
46.29preceding year may be determined. The secretary of state must also make available in
46.30an electronic format the names of the dissolved corporations. A corporation dissolved in
46.31this manner is not entitled to the benefits of section 302A.781. The liability, if any, of the
46.32shareholders of a corporation dissolved in this manner shall be determined and limited in
47.1accordance with section 302A.557, except that the shareholders shall have no liability to
47.2any director of the corporation under section 302A.559, subdivision 2.
47.3    (c) After administrative dissolution, filing a registration and the $25 fee with the
47.4secretary of state:
47.5    (1) returns the corporation to good standing as of the date of the dissolution;
47.6    (2) validates contracts or other acts within the authority of the articles, and the
47.7corporation is liable for those contracts or acts; and
47.8    (3) restores to the corporation all assets and rights of the corporation to the extent
47.9they were held by the corporation before the dissolution occurred, except to the extent that
47.10assets or rights were affected by acts occurring after the dissolution or sold or otherwise
47.11distributed after that time.
47.12EFFECTIVE DATE.This section is effective January 1, 2008.

47.13    Sec. 54. Minnesota Statutes 2006, section 308A.995, subdivision 4, is amended to read:
47.14    Subd. 4. Penalty; dissolution. (a) A cooperative that has failed to file a registration
47.15pursuant to the requirements of this section by December 31 of the calendar year for which
47.16the registration was required must be dissolved by the secretary of state as described in
47.17paragraph (b).
47.18    (b) If the cooperative has not filed the registration by December 31 of that calendar
47.19year, the secretary of state must issue a certificate of involuntary dissolution, and the
47.20certificate must be filed in the Office of the Secretary of State. The secretary of state must
47.21annually inform the attorney general and the commissioner of revenue of the methods by
47.22which the names of cooperatives dissolved under this section during the preceding year
47.23may be determined. The secretary of state must also make available in an electronic
47.24format the names of the dissolved cooperatives. A cooperative dissolved in this manner is
47.25not entitled to the benefits of section 308A.981.
47.26EFFECTIVE DATE.This section is effective January 1, 2008.

47.27    Sec. 55. Minnesota Statutes 2006, section 308B.121, subdivision 4, is amended to read:
47.28    Subd. 4. Penalty; dissolution. (a) A cooperative that has failed to file a registration
47.29under the requirements of this section must be dissolved by the secretary of state as
47.30described in paragraph (b).
47.31    (b) If the cooperative has not filed the registration by December 31 of that calendar
47.32year, the secretary of state must issue a certificate of involuntary dissolution and the
47.33certificate must be filed in the Office of the Secretary of State. The secretary of state must
48.1annually inform the attorney general and the commissioner of revenue of the methods by
48.2which the names of cooperatives dissolved under this section during the preceding year
48.3may be determined. The secretary of state must also make available in an electronic
48.4format the names of the dissolved cooperatives. A cooperative dissolved in this manner is
48.5not entitled to the benefits of section 308B.971.
48.6EFFECTIVE DATE.This section is effective January 1, 2008.

48.7    Sec. 56. Minnesota Statutes 2006, section 308B.215, subdivision 2, is amended to read:
48.8    Subd. 2. Filing. The original articles and a designation of the cooperative's
48.9registered office and agent, including a registration form under section 308B.121, shall
48.10be filed with the secretary of state. The fee for filing the articles with the secretary of
48.11state is $60.
48.12EFFECTIVE DATE.This section is effective August 1, 2007.

48.13    Sec. 57. [308B.903] NOTICE OF INTENT TO DISSOLVE.
48.14    Before a cooperative begins dissolution, a notice of intent to dissolve must be filed
48.15with the secretary of state. The notice must contain:
48.16    (1) the name of the cooperative;
48.17    (2) the date and place of the members' meeting at which the resolution was
48.18approved; and
48.19    (3) a statement that the requisite vote of the members approved the proposed
48.20dissolution.
48.21EFFECTIVE DATE.This section is effective August 1, 2007.

48.22    Sec. 58. Minnesota Statutes 2006, section 317A.823, subdivision 1, is amended to read:
48.23    Subdivision 1. Annual registration. (a) The secretary of state must send annually
48.24to each corporation at the registered office of the corporation a postcard notice announcing
48.25the need to file the annual registration and informing the corporation that the annual
48.26registration may be filed online and that paper filings may also be made, and informing
48.27the corporation that failing to file the annual registration will result in an administrative
48.28dissolution of the corporation.
48.29    (b) Except for corporations to which paragraph (d) applies, Each calendar year
48.30beginning in the calendar year following the calendar year in which a corporation
48.31incorporates, a corporation must file with the secretary of state by December 31 of each
48.32calendar year a registration containing the information listed in paragraph (c).
49.1    (c) The registration must include:
49.2    (1) the name of the corporation;
49.3    (2) the address of its registered office;
49.4    (3) the name of its registered agent, if any; and
49.5    (4) the name and business address of the officer or other person exercising the
49.6principal functions of president of the corporation.
49.7    (d) The timely filing of an annual financial report and audit or an annual financial
49.8statement under section 69.051, subdivision 1 or 1a, by a volunteer firefighter relief
49.9association, as reflected in the notification by the state auditor under section 69.051,
49.10subdivision 1c
, constitutes presentation of the corporate registration. The secretary of state
49.11may reject the registration by the volunteer firefighter relief association. Rejection must
49.12occur if the information provided to the state auditor does not match the information
49.13in the records of the secretary of state. The volunteer firefighter relief association may
49.14amend the articles of incorporation as provided in sections 317A.131 to 317A.151 so
49.15that the information from the state auditor may be accepted for filing. The timely filing
49.16of an annual financial report and audit or an annual financial statement under section
49.1769.051, subdivision 1 or 1a, does not relieve the volunteer firefighter relief association
49.18of the requirement to file amendments to the articles of incorporation directly with the
49.19secretary of state.
49.20EFFECTIVE DATE.This section is effective August 1, 2007.

49.21    Sec. 59. Minnesota Statutes 2006, section 321.0206, is amended to read:
49.22321.0206 DELIVERY TO AND FILING OF RECORDS BY SECRETARY OF
49.23STATE; EFFECTIVE TIME AND DATE.
49.24    (a) A record authorized or required to be delivered to the secretary of state for filing
49.25under this chapter must be captioned to describe the record's purpose, be in a medium
49.26permitted by the secretary of state, and be delivered to the secretary of state. Unless the
49.27secretary of state determines that a record does not comply with the filing requirements
49.28of this chapter, and if the appropriate filing fees have been paid, the secretary of state
49.29shall file the record and:
49.30    (1) for a statement of dissociation, send:
49.31    (A) a copy of the filed statement to the person which the statement indicates has
49.32dissociated as a general partner; and
49.33    (B) a copy of the filed statement to the limited partnership;
49.34    (2) for a statement of withdrawal, send:
50.1    (A) a copy of the filed statement to the person on whose behalf the record was
50.2filed; and
50.3    (B) if the statement refers to an existing limited partnership, a copy of the filed
50.4statement to the limited partnership; and
50.5    (3) for all other records, send a copy of the filed record to the person on whose
50.6behalf the record was filed.
50.7    (b) Upon request and payment of a fee, the secretary of state shall send to the
50.8requester a certified copy of the requested record.
50.9    (c) Except as otherwise provided in sections 321.0116 and 321.0207, a record
50.10delivered to the secretary of state for filing under this chapter may specify an effective
50.11time and a delayed effective date. Except as otherwise provided in this chapter, a record
50.12filed by the secretary of state is effective:
50.13    (1) if the record does not specify an effective time and does not specify a delayed
50.14effective date, on the date and at the time the record is filed as evidenced by the secretary
50.15of state's endorsement of the date and time on the record;
50.16    (2) if the record specifies an effective time but not a delayed effective date, on the
50.17date the record is filed at the time specified in the record;
50.18    (3) if the record specifies a delayed effective date but not an effective time, at 12:01
50.19a.m. on the earlier of:
50.20    (A) the specified date; or
50.21    (B) the 30th day after the record is filed; or
50.22    (4) if the record specifies an effective time and a delayed effective date, at the
50.23specified time on the earlier of:
50.24    (A) the specified date; or
50.25    (B) the 30th day after the record is filed.
50.26    (d) The appropriate fees for filings under this chapter are:
50.27    (1) for filing a certificate of limited partnership, $100;
50.28    (2) for filing an amended certificate of limited partnership, $50;
50.29    (3) for filing any other record, other than the annual report required by section
50.30321.0210, for which no fee must be charged, required or permitted to be delivered for
50.31filing, $35;
50.32    (4) for filing a certificate requesting authority to transact business in Minnesota as a
50.33foreign limited partnership, $85;
50.34    (5) for filing an application of reinstatement, $25; and
50.35    (6) for filing a name reservation for a foreign limited partnership name, $35; and
51.1    (7) for filing any other record, other than the annual report required by section
51.2321.0210, for which no fee must be charged, required or permitted to be delivered for
51.3filing on a foreign limited partnership authorized to transact business in Minnesota, $50.
51.4EFFECTIVE DATE.This section is effective July 1, 2007.

51.5    Sec. 60. Minnesota Statutes 2006, section 321.0210, is amended to read:
51.6321.0210 ANNUAL REPORT FOR SECRETARY OF STATE.
51.7    (a) Subject to subsection (b):
51.8    (1) in each calendar year following the calendar year in which a limited partnership
51.9becomes subject to this chapter, the limited partnership must deliver to the secretary of
51.10state for filing an annual registration containing the information required by subsection
51.11(c); and
51.12    (2) in each calendar year following the calendar year in which there is first on file
51.13with the secretary of state a certificate of authority under section 321.0904 pertaining to a
51.14foreign limited partnership, the foreign limited partnership must deliver to the secretary of
51.15state for filing an annual registration containing the information required by subsection (c).
51.16    (b) A limited partnership's obligation under subsection (a) ends if the limited
51.17partnership delivers to the secretary of state for filing a statement of termination under
51.18section 321.0203 and the statement becomes effective under section 321.0206. A foreign
51.19limited partnership's obligation under subsection (a) ends if the secretary of state issues
51.20and files a certificate of revocation under section 321.0906 or if the foreign limited
51.21partnership delivers to the secretary of state for filing a notice of cancellation under
51.22section 321.0907(a) and that notice takes effect under section 321.0206. If a foreign
51.23limited partnership's obligations under subsection (a) end and later the secretary of state
51.24files, pursuant to section 321.0904, a new certificate of authority pertaining to that foreign
51.25limited partnership, subsection (a)(2), again applies to the foreign limited partnership and,
51.26for the purposes of subsection (a)(2), the calendar year of the new filing is treated as the
51.27calendar year in which a certificate of authority is first on file with the secretary of state.
51.28    (c) The annual registration must contain:
51.29    (1) the name of the limited partnership or foreign limited partnership;
51.30    (2) the address of its designated office and the name and street and mailing address
51.31of its agent for service of process in Minnesota and, if the agent is not an individual, the
51.32name, street and mailing address, and telephone number of an individual who may be
51.33contacted for purposes other than service of process with respect to the limited partnership;
52.1    (3) in the case of a limited partnership, the street and mailing address of its principal
52.2office; and
52.3    (4) in the case of a foreign limited partnership, the name of the state or other
52.4jurisdiction under whose law the foreign limited partnership is formed and any alternate
52.5name adopted under section 321.0905(a).
52.6    (d) The secretary of state shall:
52.7    (1) administratively dissolve under section 321.0809 a limited partnership that has
52.8failed to file a registration pursuant to subsection (a); and
52.9    (2) revoke under section 321.0906 the certificate of authority of a foreign limited
52.10partnership that has failed to file a registration pursuant to subsection (a).

52.11    Sec. 61. [321.0909] NAME CHANGES FILED IN HOME STATE.
52.12    A foreign limited partnership shall notify the secretary of state of any changes to the
52.13partnership name filed with the state of formation by filing a certificate from the state of
52.14formation certifying to the change of name.
52.15EFFECTIVE DATE.This section is effective August 1, 2007.

52.16    Sec. 62. Minnesota Statutes 2006, section 323A.1003, is amended to read:
52.17323A.1003 ANNUAL REGISTRATION.
52.18    (a) Each calendar year beginning in the calendar year following the calendar year
52.19in which a partnership files a statement of qualification or in which a foreign partnership
52.20becomes authorized to transact business in this state, the secretary of state must mail by
52.21first class mail an annual registration form to the street address of the partnership's chief
52.22executive office, if located in Minnesota, the office in this state, if the chief executive
52.23office is not located in Minnesota, or address of the registered agent of the partnership
52.24as shown on the records of the secretary of state when the chief executive office is not
52.25located in Minnesota and no other Minnesota office exists. The form must include the
52.26following notice:
52.27    "NOTICE: Failure to file this form by December 31 of this year will result in
52.28the revocation of the statement of qualification of this limited liability partnership
52.29without further notice from the secretary of state pursuant to Minnesota Statutes, section
52.30323A.1003, subsection (d) ."
52.31    (b) A limited liability partnership, and a foreign limited liability partnership
52.32authorized to transact business in this state, shall file an annual registration in the office
52.33of the secretary of state which contains:
53.1    (1) the name of the limited liability partnership and the state or other jurisdiction
53.2under whose laws the foreign limited liability partnership is formed;
53.3    (2) the street address, including the zip code, of the partnership's chief executive
53.4office and, if different, the street address, including the zip code, of an office of the
53.5partnership in this state, if any; and
53.6    (3) if the partnership does not have an office in this state, the name and street address,
53.7including the zip code, of the partnership's current agent for service of process; and
53.8    (4) if the agent for service of process under clause (3) is not an individual, the name,
53.9street address, and telephone number of an individual who may be contacted for purposes
53.10other than service of process with respect to the limited liability partnership.
53.11    (c) An annual registration must be filed once each calendar year beginning in the
53.12year following the calendar year in which a partnership files a statement of qualification or
53.13a foreign partnership becomes authorized to transact business in this state.
53.14    (d) The secretary of state must revoke the statement of qualification of a partnership
53.15that fails to file an annual registration when due or pay the required filing fee. The
53.16secretary of state must issue a certificate of revocation which must be filed in the office
53.17of the secretary of state. The secretary of state must also make available in an electronic
53.18format the names of the revoked limited liability companies.
53.19    (e) A revocation under subsection (d) only affects a partnership's status as a limited
53.20liability partnership and is not an event of dissolution of the partnership.
53.21    (f) A partnership whose statement of qualification has been revoked may apply to
53.22the secretary of state for reinstatement within one year after the effective date of the
53.23revocation. A partnership must file an annual registration to apply for reinstatement and
53.24pay a reinstatement fee of $135.
53.25    (g) A reinstatement under subsection (f) relates back to and takes effect as of
53.26the effective date of the revocation, and the partnership's status as a limited liability
53.27partnership continues as if the revocation had never occurred.

53.28    Sec. 63. Minnesota Statutes 2006, section 336.1-110, is amended to read:
53.29336.1-110 UNIFORM COMMERCIAL CODE ACCOUNT.
53.30    The Uniform Commercial Code account is established as an account in the state
53.31treasury. Fees that are not expressly set by statute but are charged by the secretary of state
53.32to offset the costs of providing a service under this chapter must be deposited in the state
53.33treasury and credited to the Uniform Commercial Code account.
53.34    Fees that are not expressly set by statute but are charged by the secretary of state
53.35to offset the costs of providing information contained in the computerized records
54.1maintained by the secretary of state must be deposited in the state treasury and credited to
54.2the Uniform Commercial Code account.
54.3    Money in the Uniform Commercial Code account is continuously appropriated to the
54.4secretary of state to implement and maintain the central filing system under this chapter,
54.5to provide, improve, and expand other online or remote lien and business entity filing,
54.6retrieval, and payment method services provided by the secretary of state, and to provide
54.7electronic access to other computerized records maintained by the secretary of state.

54.8    Sec. 64. Minnesota Statutes 2006, section 336.9-516, is amended to read:
54.9336.9-516 WHAT CONSTITUTES FILING; EFFECTIVENESS OF FILING.
54.10    (a) What constitutes filing. Except as otherwise provided in subsection (b),
54.11communication of a record to a filing office and tender of the filing fee or acceptance of
54.12the record by the filing office constitutes filing.
54.13    (b) Refusal to accept record; filing does not occur. Filing does not occur with
54.14respect to a record that a filing office refuses to accept because:
54.15    (1) the record is not communicated by a method or medium of communication
54.16authorized by the filing office. For purposes of filing office authorization, transmission of
54.17records using the Extensible Markup Language (XML) format is authorized by the filing
54.18office after the later of July 1, 2007, or the determination of the secretary of state that the
54.19central filing system is capable of receiving and processing these records;
54.20    (2) an amount equal to or greater than the applicable filing fee is not tendered;
54.21    (3) the filing office is unable to index the record because:
54.22    (A) in the case of an initial financing statement, the record does not provide a name
54.23for the debtor;
54.24    (B) in the case of an amendment or correction statement, the record:
54.25    (i) does not identify the initial financing statement as required by section 336.9-512
54.26or 336.9-518, as applicable; or
54.27    (ii) identifies an initial financing statement whose effectiveness has lapsed under
54.28section 336.9-515;
54.29    (C) in the case of an initial financing statement that provides the name of a debtor
54.30identified as an individual or an amendment that provides a name of a debtor identified as
54.31an individual which was not previously provided in the financing statement to which the
54.32record relates, the record does not identify the debtor's last name; or
54.33    (D) in the case of a record filed or recorded in the filing office described in section
54.34336.9-501(a)(1) , the record does not provide a sufficient description of the real property
54.35to which it relates;
55.1    (4) in the case of an initial financing statement or an amendment that adds a secured
55.2party of record, the record does not provide a name and mailing address for the secured
55.3party of record;
55.4    (5) in the case of an initial financing statement or an amendment that provides a
55.5name of a debtor which was not previously provided in the financing statement to which
55.6the amendment relates, the record does not:
55.7    (A) provide a mailing address for the debtor;
55.8    (B) indicate whether the debtor is an individual or an organization; or
55.9    (C) if the financing statement indicates that the debtor is an organization, provide:
55.10    (i) a type of organization for the debtor;
55.11    (ii) a jurisdiction of organization for the debtor; or
55.12    (iii) an organizational identification number for the debtor or indicate that the debtor
55.13has none;
55.14    (6) in the case of an assignment reflected in an initial financing statement under
55.15section 336.9-514(a) or an amendment filed under section 336.9-514(b), the record does
55.16not provide a name and mailing address for the assignee; or
55.17    (7) in the case of a continuation statement, the record is not filed within the
55.18six-month period prescribed by section 336.9-515(d).
55.19    (c) Rules applicable to subsection (b). For purposes of subsection (b):
55.20    (1) a record does not provide information if the filing office is unable to read or
55.21decipher the information; and
55.22    (2) a record that does not indicate that it is an amendment or identify an initial
55.23financing statement to which it relates, as required by section 336.9-512, 336.9-514, or
55.24336.9-518 , is an initial financing statement.
55.25    (d) Refusal to accept record; record effective as filed record. A record that is
55.26communicated to the filing office with tender of the filing fee, but which the filing office
55.27refuses to accept for a reason other than one set forth in subsection (b), is effective as a
55.28filed record except as against a purchaser of the collateral which gives value in reasonable
55.29reliance upon the absence of the record from the files.
55.30EFFECTIVE DATE.This section is effective August 1, 2007.

55.31    Sec. 65. Minnesota Statutes 2006, section 336.9-525, is amended to read:
55.32336.9-525 FEES.
55.33    (a) Initial financing statement or other record: general rule. Except as otherwise
55.34provided in subsection (d), the fee for filing and indexing a record under this part delivered
56.1on paper is $20 and for a record delivered by any electronic means is $15. $5 of the
56.2fee collected for each filing made online must be deposited in the uniform commercial
56.3code account.
56.4    (b) Number of names. The number of names required to be indexed does not
56.5affect the amount of the fee in subsection (a).
56.6    (c) Response to information request. The fee for responding to a request for
56.7information from the filing office, including for issuing a certificate showing whether there
56.8is on file any financing statement naming a particular debtor, delivered on paper is $20
56.9and for a record delivered by any electronic means is $15. $5 of the fee collected for each
56.10request delivered online must be deposited in the uniform commercial code account.
56.11    (d) Record of mortgage. This section does not require a fee with respect to a record
56.12of a mortgage which is effective as a financing statement filed as a fixture filing or as a
56.13financing statement covering as-extracted collateral or timber to be cut under section
56.14336.9-502(c) . However, the recording and satisfaction fees that otherwise would be
56.15applicable to the record of the mortgage apply.

56.16    Sec. 66. Minnesota Statutes 2006, section 358.41, is amended to read:
56.17358.41 DEFINITIONS.
56.18    As used in sections 358.41 to 358.49:
56.19    (1) "Notarial act" means any act that a notary public of this state is authorized to
56.20perform, and includes taking an acknowledgment, administering an oath or affirmation,
56.21taking a verification upon oath or affirmation, witnessing or attesting a signature, certifying
56.22or attesting a copy, and noting a protest of a negotiable instrument. A notary public may
56.23perform a notarial act by electronic means.
56.24    (2) "Acknowledgment" means a declaration by a person that the person has executed
56.25an instrument or electronic record for the purposes stated therein and, if the instrument
56.26or electronic record is executed in a representative capacity, that the person signed
56.27the instrument with proper authority and executed it as the act of the person or entity
56.28represented and identified therein.
56.29    (3) "Verification upon oath or affirmation" means a declaration that a statement is
56.30true made by a person upon oath or affirmation.
56.31    (4) "In a representative capacity" means:
56.32    (i) for and on behalf of a corporation, partnership, limited liability company, trust, or
56.33other entity, as an authorized officer, agent, partner, trustee, or other representative;
56.34    (ii) as a public officer, personal representative, guardian, or other representative,
56.35in the capacity recited in the instrument;
57.1    (iii) as an attorney in fact for a principal; or
57.2    (iv) in any other capacity as an authorized representative of another.
57.3    (5) "Notarial officer" means a notary public or other officer authorized to perform
57.4notarial acts.
57.5    (6) "Electronic signature" means an electronic sound, symbol, or process attached
57.6to or logically associated with a record and executed or adopted by a person with the
57.7intent to sign the record.
57.8    (7) "Electronic record" means a record created, generated, sent, communicated,
57.9received, or stored by electronic means.
57.10EFFECTIVE DATE.This section is effective August 1, 2007.

57.11    Sec. 67. Minnesota Statutes 2006, section 358.42, is amended to read:
57.12358.42 NOTARIAL ACTS.
57.13    (a) In taking an acknowledgment, the notarial officer must determine, either from
57.14personal knowledge or from satisfactory evidence, that the person appearing before the
57.15officer and making the acknowledgment is the person whose true signature is on the
57.16instrument or electronic record.
57.17    (b) In taking a verification upon oath or affirmation, the notarial officer must
57.18determine, either from personal knowledge or from satisfactory evidence, that the person
57.19appearing before the officer and making the verification is the person whose true signature
57.20is made in the presence of the officer on the statement verified.
57.21    (c) In witnessing or attesting a signature the notarial officer must determine, either
57.22from personal knowledge or from satisfactory evidence, that the signature is that of the
57.23person appearing before the officer and named therein. When witnessing or attesting a
57.24signature, the officer must be present when the signature is made.
57.25    (d) In certifying or attesting a copy of a document, electronic record, or other item,
57.26the notarial officer must determine that the proffered copy is a full, true, and accurate
57.27transcription or reproduction of that which was copied.
57.28    (e) In making or noting a protest of a negotiable instrument or electronic record the
57.29notarial officer must determine the matters set forth in section 336.3-505.
57.30    (f) A notarial officer has satisfactory evidence that a person is the person whose true
57.31signature is on a document or electronic record if that person (i) is personally known to
57.32the notarial officer, (ii) is identified upon the oath or affirmation of a credible witness
57.33personally known to the notarial officer, or (iii) is identified on the basis of identification
57.34documents.
58.1EFFECTIVE DATE.This section is effective August 1, 2007.

58.2    Sec. 68. Minnesota Statutes 2006, section 358.50, is amended to read:
58.3358.50 EFFECT OF ACKNOWLEDGMENT.
58.4    An acknowledgment made in a representative capacity for and on behalf of a
58.5corporation, partnership, limited liability company, trust, or other entity and certified
58.6substantially in the form prescribed in this chapter is prima facie evidence that the
58.7instrument or electronic record was executed and delivered with proper authority.
58.8EFFECTIVE DATE.This section is effective August 1, 2007.

58.9    Sec. 69. Minnesota Statutes 2006, section 359.085, subdivision 2, is amended to read:
58.10    Subd. 2. Verifications. In taking a verification upon oath or affirmation, the notarial
58.11officer must determine, either from personal knowledge or from satisfactory evidence, that
58.12the person appearing before the officer and making the verification is the person whose
58.13true signature is made in the presence of the officer on the statement verified.
58.14EFFECTIVE DATE.This section is effective August 1, 2007.

58.15    Sec. 70. Minnesota Statutes 2006, section 359.085, subdivision 3, is amended to read:
58.16    Subd. 3. Witnessing or attesting signatures. In witnessing or attesting a signature,
58.17the notarial officer must determine, either from personal knowledge or from satisfactory
58.18evidence, that the signature is that of the person appearing before the officer and named in
58.19the document or electronic record. When witnessing or attesting a signature, the officer
58.20must be present when the signature is made.
58.21EFFECTIVE DATE.This section is effective August 1, 2007.

58.22    Sec. 71. Minnesota Statutes 2006, section 477A.014, subdivision 4, is amended to read:
58.23    Subd. 4. Costs. The director of the Office of Strategic and Long-Range Planning
58.24shall annually bill the commissioner of revenue for one-half of the costs incurred by the
58.25state demographer in the preparation of materials required by section 4A.02. The state
58.26auditor shall bill the commissioner of revenue for the costs of best practices reviews
58.27and the services provided by the Government Information Division and the parts of the
58.28constitutional office that are related to the government information function, and for
58.29the services provided by the Tax Increment Financing Investment and Finance Division
58.30required by section 469.3201, not to exceed $217,000 $614,000 each fiscal year. The
59.1commissioner of administration shall bill the commissioner of revenue for the costs of
59.2the local government records program and the intergovernmental information systems
59.3activity, not to exceed $205,800 each fiscal year. The commissioner of employee relations
59.4shall bill the commissioner of revenue for the costs of administering the local government
59.5pay equity function, not to exceed $55,000 each fiscal year.

59.6    Sec. 72. Minnesota Statutes 2006, section 491A.02, subdivision 4, is amended to read:
59.7    Subd. 4. Representation. (a) A corporation, partnership, limited liability company,
59.8sole proprietorship, or association may be represented in conciliation court by an officer,
59.9manager, or partner or an agent in the case of a condominium, cooperative, or townhouse
59.10association, or may appoint a natural person who is an employee or commercial property
59.11manager to appear on its behalf or settle a claim in conciliation court. The state or a
59.12political subdivision of the state may be represented in conciliation court by an employee
59.13of the pertinent governmental unit without a written authorization. The state also may be
59.14represented in conciliation court by an employee of the Division of Risk Management of
59.15the Department of Administration without a written authorization. Representation under
59.16this subdivision does not constitute the practice of law for purposes of section 481.02,
59.17subdivision 8
. In the case of an officer, employee, commercial property manager, or
59.18agent of a condominium, cooperative, or townhouse association, an authorized power
59.19of attorney, corporate authorization resolution, corporate bylaw, or other evidence of
59.20authority acceptable to the court must be filed with the claim or presented at the hearing.
59.21This subdivision also applies to appearances in district court by a corporation or limited
59.22liability company with five or fewer shareholders or members and to any condominium,
59.23cooperative, or townhouse association, if the action was removed from conciliation court.
59.24    (b) "Commercial property manager" means a corporation, partnership, or limited
59.25liability company or its employees who are hired by the owner of commercial real
59.26estate to perform a broad range of administrative duties at the property including tenant
59.27relations matters, leasing, repairs, maintenance, the negotiation and resolution of tenant
59.28disputes, and related matters. In order to appear in conciliation court, a property manager's
59.29employees must possess a real estate license under section 82.20 and be authorized by the
59.30owner of the property to settle all disputes with tenants and others within the jurisdictional
59.31limits of conciliation court.
59.32    (c) A commercial property manager who is appointed to settle a claim in conciliation
59.33court may not charge or collect a separate fee for services rendered under paragraph (a).

59.34    Sec. 73. Minnesota Statutes 2006, section 507.24, subdivision 2, is amended to read:
60.1    Subd. 2. Original signatures required. (a) Unless otherwise provided by law, an
60.2instrument affecting real estate that is to be recorded as provided in this section or other
60.3applicable law must contain the original signatures of the parties who execute it and of the
60.4notary public or other officer taking an acknowledgment. However, a financing statement
60.5that is recorded as a filing pursuant to section 336.9-502(b) need not contain: (1) the
60.6signatures of the debtor or the secured party; or (2) an acknowledgment.
60.7    (b)(1) Any electronic instruments, including signatures and seals, affecting real
60.8estate may only be recorded as part of a pilot project for the electronic filing of real
60.9estate documents implemented by the task force created in Laws 2000, chapter 391, or
60.10by the Electronic Real Estate Recording Task Force created under section 507.094. The
60.11Electronic Real Estate Recording Task Force created under section 507.094 may amend
60.12standards set by the task force created in Laws 2000, chapter 391, and may set new or
60.13additional standards and establish pilot projects to the full extent permitted in section
60.14507.094, subdivision 2, paragraph (b). Documents recorded in conformity with those
60.15standards and in those pilot projects are deemed to meet the requirements of this section.
60.16    (2)(i) A county that participated in the pilot project for the electronic filing of real
60.17estate documents under the task force created in Laws 2000, chapter 391, may continue to
60.18record or file documents electronically, if:
60.19    (1) (A) the county complies with standards adopted by the task force; and
60.20    (2) (B) the county uses software that was validated by the task force.
60.21    (ii) A county that did not participate in the pilot project may record or file a real
60.22estate document electronically, if:
60.23    (i) (A) the document to be recorded or filed is of a type included in the pilot project
60.24for the electronic filing of real estate documents under the task force created in Laws
60.252000, chapter 391;
60.26    (ii) (B) the county complies with the standards adopted by the task force;
60.27    (iii) (C) the county uses software that was validated by the task force; and
60.28    (iv) (D) the task force created under section 507.094, votes to accept a written
60.29certification of compliance with paragraph (b), clause (2), of this section by the county
60.30board and county recorder of the county to implement electronic filing under this section.
60.31    (c) Notices filed pursuant to section 168A.141, subdivisions 1 and 3, need not
60.32contain an acknowledgment.

60.33    Sec. 74. Minnesota Statutes 2006, section 517.08, subdivision 1b, is amended to read:
60.34    Subd. 1b. Term of license; fee; premarital education. (a) The local registrar
60.35shall examine upon oath the party applying for a license relative to the legality of the
61.1contemplated marriage. If at the expiration of a five-day period, on being satisfied that
61.2there is no legal impediment to it, including the restriction contained in section 259.13, the
61.3local registrar shall issue the license, containing the full names of the parties before and
61.4after marriage, and county and state of residence, with the county seal attached, and make a
61.5record of the date of issuance. The license shall be valid for a period of six months. In case
61.6of emergency or extraordinary circumstances, a judge of the district court of the county in
61.7which the application is made, may authorize the license to be issued at any time before
61.8the expiration of the five days. Except as provided in paragraph (b), the local registrar shall
61.9collect from the applicant a fee of $100 $110 for administering the oath, issuing, recording,
61.10and filing all papers required, and preparing and transmitting to the state registrar of vital
61.11statistics the reports of marriage required by this section. If the license should not be used
61.12within the period of six months due to illness or other extenuating circumstances, it may
61.13be surrendered to the local registrar for cancellation, and in that case a new license shall
61.14issue upon request of the parties of the original license without fee. A local registrar who
61.15knowingly issues or signs a marriage license in any manner other than as provided in this
61.16section shall pay to the parties aggrieved an amount not to exceed $1,000.
61.17    (b) The marriage license fee for parties who have completed at least 12 hours of
61.18premarital education is $30 $40. In order to qualify for the reduced license fee, the
61.19parties must submit at the time of applying for the marriage license a signed and dated
61.20statement from the person who provided the premarital education confirming that it was
61.21received. The premarital education must be provided by a licensed or ordained minister
61.22or the minister's designee, a person authorized to solemnize marriages under section
61.23517.18 , or a person authorized to practice marriage and family therapy under section
61.24148B.33 . The education must include the use of a premarital inventory and the teaching of
61.25communication and conflict management skills.
61.26    (c) The statement from the person who provided the premarital education under
61.27paragraph (b) must be in the following form:
61.28    "I, (name of educator), confirm that (names of both parties) received at least 12
61.29hours of premarital education that included the use of a premarital inventory and the
61.30teaching of communication and conflict management skills. I am a licensed or ordained
61.31minister, a person authorized to solemnize marriages under Minnesota Statutes, section
61.32517.18 , or a person licensed to practice marriage and family therapy under Minnesota
61.33Statutes, section 148B.33."
61.34    The names of the parties in the educator's statement must be identical to the legal
61.35names of the parties as they appear in the marriage license application. Notwithstanding
62.1section 138.17, the educator's statement must be retained for seven years, after which
62.2time it may be destroyed.
62.3    (d) If section 259.13 applies to the request for a marriage license, the local registrar
62.4shall grant the marriage license without the requested name change. Alternatively, the local
62.5registrar may delay the granting of the marriage license until the party with the conviction:
62.6    (1) certifies under oath that 30 days have passed since service of the notice for a
62.7name change upon the prosecuting authority and, if applicable, the attorney general and no
62.8objection has been filed under section 259.13; or
62.9    (2) provides a certified copy of the court order granting it. The parties seeking the
62.10marriage license shall have the right to choose to have the license granted without the
62.11name change or to delay its granting pending further action on the name change request.

62.12    Sec. 75. Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:
62.13    Subd. 1c. Disposition of license fee. (a) Of the marriage license fee collected
62.14pursuant to subdivision 1b, paragraph (a), $15 $25 must be retained by the county. The
62.15local registrar must pay $85 to the commissioner of finance to be deposited as follows:
62.16    (1) $50 in the general fund;
62.17    (2) $3 in the special revenue fund to be appropriated to the commissioner of
62.18education for parenting time centers under section 119A.37;
62.19    (3) $2 in the special revenue fund to be appropriated to the commissioner of health
62.20for developing and implementing the MN ENABL program under section 145.9255;
62.21    (4) $25 in the special revenue fund is appropriated to the commissioner of
62.22employment and economic development for the displaced homemaker program under
62.23section 116L.96; and
62.24    (5) $5 in the special revenue fund is appropriated to the commissioner of human
62.25services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under
62.26section 256.742.
62.27    (b) Of the $30 $40 fee under subdivision 1b, paragraph (b), $15 $25 must be retained
62.28by the county. The local registrar must pay $15 to the commissioner of finance to be
62.29deposited as follows:
62.30    (1) $5 as provided in paragraph (a), clauses (2) and (3); and
62.31    (2) $10 in the special revenue fund is appropriated to the commissioner of
62.32employment and economic development for the displaced homemaker program under
62.33section 116L.96.
62.34    (c) The increase in the marriage license fee under paragraph (a) provided for in Laws
62.352004, chapter 273, and disbursement of the increase in that fee to the special fund for the
63.1Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a),
63.2clause (5), is contingent upon the receipt of federal funding under United States Code, title
63.342, section 1315, for purposes of the initiative.

63.4    Sec. 76. Laws 2005, chapter 156, article 2, section 45, is amended to read:
63.5    Sec. 45. SALE OF STATE LAND.
63.6    Subdivision 1. State land sales. The commissioner of administration shall
63.7coordinate with the head of each department or agency having control of state-owned land
63.8to identify and sell at least $6,440,000 of state-owned land. Sales should be completed
63.9according to law and as provided in this section as soon as practicable but no later than
63.10June 30, 2007 2009. Notwithstanding Minnesota Statutes, sections 16B.281 and 16B.282,
63.1194.09 and 94.10, or any other law to the contrary, the commissioner may offer land
63.12for public sale by only providing notice of lands or an offer of sale of lands to state
63.13departments or agencies, the University of Minnesota, cities, counties, towns, school
63.14districts, or other public entities.
63.15    Subd. 2. Anticipated savings. Notwithstanding Minnesota Statutes, section
63.1694.16, subdivision 3 , or other law to the contrary, the amount of the proceeds from the
63.17sale of land under this section that exceeds the actual expenses of selling the land must
63.18be deposited in the general fund, except as otherwise provided by the commissioner of
63.19finance. Notwithstanding Minnesota Statutes, section 94.11 or 16B.283, the commissioner
63.20of finance may establish the timing of payments for land purchased under this section. If
63.21the total of all money deposited into the general fund from the proceeds of the sale of land
63.22under this section is anticipated to be less than $6,440,000, the governor must allocate the
63.23amount of the difference as reductions to general fund operating expenditures for other
63.24executive agencies for the biennium ending June 30, 2007 2009.
63.25    Subd. 3. Sale of state lands revolving loan fund. $290,000 is appropriated from
63.26the general fund in fiscal year 2006 to the commissioner of administration for purposes
63.27of paying the actual expenses of selling state-owned lands to achieve the anticipated
63.28savings required in this section. From the gross proceeds of land sales under this section,
63.29the commissioner of administration must cancel the amount of the appropriation in this
63.30subdivision to the general fund by June 30, 2007 2009.

63.31    Sec. 77. Laws 2006, chapter 253, section 22, subdivision 1, is amended to read:
63.32    Subdivision 1. Genetic information; work group. (a) The commissioner must
63.33create a work group to develop principles for public policy on the use of genetic
63.34information. The work group must include representatives of state government, including
64.1the judicial branch, local government, prosecutors, public defenders, the American Civil
64.2Liberties Union - Minnesota, the Citizens Council on Health Care, the University of
64.3Minnesota Center on Bioethics, the Minnesota Medical Association, the Mayo Clinic
64.4and Foundation, the March of Dimes, and representatives of employers, researchers,
64.5epidemiologists, laboratories, and insurance companies.
64.6    (b) The commissioner of administration and the work group must conduct reviews
64.7of the topics in paragraphs (c) to (f), in light of the issues raised in the report on treatment
64.8of genetic information under state law required by Laws 2005, chapter 163, section 87.
64.9The commissioner must report the results, including any recommendations for legislative
64.10changes, to the chairs of the house Civil Law Committee and the senate Judiciary
64.11Committee and the ranking minority members of those committees by January 15, 2008
64.122009.
64.13    (c) The commissioner and the work group must determine whether changes are
64.14needed in Minnesota Statutes, section 144.69, dealing with collection of information
64.15from cancer patients and their relatives.
64.16    (d) The commissioner and the work group must make recommendations whether
64.17all relatives affected by a formal three-generation pedigree created by the Department of
64.18Health should be able to access the entire data set, rather than only allowing individuals
64.19access to the data of which they are the subject.
64.20    (e) The commissioner and the work group must identify, and may make
64.21recommendations among, options for resolving questions of secondary uses of genetic
64.22information.
64.23    (f) The commissioner and the work group must make recommendations whether
64.24legislative changes are needed regarding access to DNA test results and the specimens
64.25used to create the test results held by the Bureau of Criminal Apprehension as part of
64.26a criminal investigation.

64.27    Sec. 78. Laws 2006, chapter 282, article 14, section 5, is amended to read:
64.28
64.29
Sec. 5. OFFICE OF ADMINISTRATIVE
HEARINGS
320,000
64.30From the workers' compensation fund for
64.31costs associated with the relocation of
64.32offices to St. Paul. The commissioner
64.33of administration shall take all steps as
64.34necessary to complete the renovation of
64.35the Stassen Building for these purposes by
65.1January 1, 2008. Minnesota Statutes, section
65.216B.33, subdivision 3 , does not apply if
65.3the estimated cost of construction exceeds
65.4$2,000,000. This is a onetime appropriation.
65.5This appropriation is available until spent.
65.6Beginning in fiscal year 2009 and for all
65.7fiscal years thereafter, the appropriation base
65.8for the workers' compensation fund for the
65.9Office of Administrative Hearings is reduced
65.10by $297,000 to reflect savings in rent costs
65.11due to the relocation of offices to St. Paul.
65.12EFFECTIVE DATE.This section is effective the day following final enactment.

65.13    Sec. 79. FORD BUILDING.
65.14    The Ford Building at 117 University Avenue in St. Paul may not be demolished
65.15during the biennium ending June 30, 2009.

65.16    Sec. 80. ELECTRONIC DOCUMENTS STUDY AND REPORT.
65.17    Subdivision 1. Study. The chief information officer of the state, in consultation with
65.18the state archivist and legislative reference librarian, shall study how electronic documents
65.19and the mechanisms and processes for accessing and reading electronic data can be created,
65.20maintained, exchanged, and preserved by the state in a manner that encourages appropriate
65.21government control, access, choice, and interoperability. The study must consider, but
65.22not be limited to, the policies of other states and nations, management guidelines for state
65.23archives as they pertain to electronic documents, public access to information, expected
65.24storage life of electronic documents, costs of implementation, and potential savings. The
65.25chief information officer shall solicit comments from stakeholders, including, but not
65.26limited to, the legislative auditor, attorney general, librarians, state services for the blind,
65.27representatives of the Minnesota Historical Society, other historians, and the media. The
65.28chief information officer shall also solicit comments from members of the public.
65.29    Subd. 2. Report and recommendations. The chief information officer shall
65.30report the officer's findings and recommendations to the chairs of the senate State and
65.31Local Government Operations and Oversight Committee; the house of representatives
65.32Government Operations, Reform, Technology and Elections Committee; and the senate
65.33and house of representatives State Government Finance Divisions by January 15, 2008.

66.1    Sec. 81. STATE EMPLOYEES ELECTRONIC HEALTH RECORDS PILOT
66.2PROJECT.
66.3    Subdivision 1. Project established. The Minnesota State Colleges and Universities
66.4Board of Trustees (MnSCU), in collaboration with the commissioner of employee relations
66.5shall establish an enterprise-wide pilot project to provide consumer-owned electronic
66.6personal health records to MnSCU employees and all participants in the state employee
66.7group insurance program. If the Department of Employee Relations is abolished, then the
66.8Minnesota State Colleges and Universities Board of Trustees shall work in collaboration
66.9with the commissioner of the department responsible for administration of the state
66.10employee group insurance program.
66.11    Subd. 2. Project goals. The goal of the project is to provide consumer-owned
66.12electronic personal health records that are portable among health care providers, health
66.13plan companies, and employers in order to control costs, improve quality, and enhance
66.14safety, and to demonstrate the feasibility of a statewide health information exchange.
66.15The pilot project shall coordinate to the extent possible with other health information
66.16consumer engagement initiatives in Minnesota designed to support the goal of statewide
66.17health information exchange. The electronic personal health records may provide, but
66.18are not limited to, the following:
66.19    (1) access to electronic medical records;
66.20    (2) prescription and appointment information;
66.21    (3) information regarding health education, public health, and health cost
66.22management; and
66.23    (4) privacy, security, and compliance with HIPAA; Minnesota Statutes, chapter 13;
66.24Minnesota Statutes, section 144.335; and other state law related to data privacy.

66.25    Sec. 82. SUSTAINABLE GROWTH WORKING GROUP.
66.26    Subdivision 1. Creation. The sustainable growth working group consists of the
66.27following members:
66.28    (1) two senators, including one member of the minority caucus, appointed by the
66.29Subcommittee on Committees of the Committee on Rules and Administration;
66.30    (2) two members of the house of representatives, one appointed by the speaker
66.31and one appointed by the minority leader;
66.32    (3) commissioners of the following agencies, or their designees: Department of
66.33Natural Resources, Department of Transportation, Department of Employment and
66.34Economic Development, Minnesota Housing Finance Agency, and the Minnesota
67.1Pollution Control Agency; and the chair of the Metropolitan Council or the chair's
67.2designee;
67.3    (4) up to 12 public members who have an interest in promoting sustainable
67.4communities in Minnesota, including up to six public members appointed by the speaker
67.5of the house of representatives and up to six public members appointed by the majority
67.6leader of the senate. The appointing authorities must use their best efforts to include at
67.7least one representative from each of the following sectors: business, environmental,
67.8energy, affordable housing, transportation, local government, planning, and philanthropic.
67.9    The membership of the working group must include balanced representation from
67.10rural, urban, and suburban areas of the state. The commissioners of administration,
67.11agriculture, and commerce must consult with and advise the working group in the
67.12development of its recommendations.
67.13    Subd. 2. Duties. The working group must identify strategies, recommendations, and
67.14a process for implementing state-level coordination of state and local policies, programs,
67.15and regulations in the areas of housing, transportation, natural resource preservation,
67.16capital development, economic development, sustainability, and preservation of the
67.17environment. The working group must identify sustainable development principles that
67.18will guide decision making in Minnesota. The working group must gather information
67.19and develop strategies relative to the strategic use of state resources, to be consistent with
67.20statewide goals of sustainable development. The working group must report proposed
67.21strategies, recommendations, and a process for implementation to the legislature and the
67.22governor by February 1, 2008. In its report to the legislature and the governor, the working
67.23group must identify its source of funding.
67.24    Subd. 3. Administrative provisions. (a) The commissioner of administration
67.25must convene the initial meeting. Upon request of the working group, the commissioner
67.26must provide meeting space and administrative services for the group. The Office of
67.27Geographic and Demographic Analysis must provide staff support for the working group.
67.28The members of the working group must elect a chair.
67.29    (b) Members of the working group serve without compensation but may be
67.30reimbursed for expenses under Minnesota Statutes, section 15.059.
67.31    (c) The working group expires June 30, 2008.
67.32    (d) The working group may accept gifts and grants, which are accepted on behalf
67.33of the state and constitute donations to the state. Funds received are appropriated to the
67.34commissioner of administration for purposes of the working group.

67.35    Sec. 83. TRAINING SERVICES.
68.1    During the biennium ending June 30, 2009, state executive branch agencies must
68.2consider using services provided by government training services before contracting with
68.3other outside vendors for similar services.

68.4    Sec. 84. DEPARTMENT OF EMPLOYEE RELATIONS ABOLISHED; DUTIES
68.5TRANSFERRED.
68.6    (a) The Department of Employee Relations and the position of the commissioner
68.7of employee relations are abolished as of June 1, 2008. Duties of the Department of
68.8Employee Relations and the commissioner of employee relations are transferred on or
68.9before June 1, 2008, to the commissioner of finance, except as follows:
68.10    (1) duties relating to administration of the state employees workers' compensation
68.11program are transferred on or before June 1, 2008, to the commissioner of administration;
68.12and
68.13    (2) duties relating to health care purchasing improvement under Minnesota Statutes,
68.14section 43A.312, are transferred on or before June 1, 2008, to the commissioner of health.
68.15    (b) The commissioner of employee relations, in consultation with the commissioner
68.16of finance, may specify one or more dates before June 1, 2008, on which any or all of the
68.17transfers provided in paragraph (a) will occur.
68.18    (c) The governor may, in consultation with the commissioner of employee relations,
68.19the commissioner of finance, the commissioner of administration, and the director of the
68.20Office of Enterprise Technology, transfer other duties of the Department of Employee
68.21Relations to other state agencies in order to most effectively and efficiently accomplish the
68.22reorganization required by this act.
68.23    (d) Transfer of duties under this section is subject to Minnesota Statutes, section
68.2415.039.
68.25    (e) In addition to any other protection, no employee in the classified service shall
68.26suffer job loss, have a salary reduced, or have employment benefits reduced as a result of
68.27a reorganization mandated or recommended under authority of this section. No action
68.28taken after June 1, 2009, shall be considered a result of reorganization for the purposes
68.29of this section.
68.30EFFECTIVE DATE.This section is effective the day following final enactment.

68.31    Sec. 85. STATE BUDGET TRENDS STUDY COMMISSION.
68.32    (a) The State Budget Trends Study Commission is established for the purpose
68.33of completing a study of the implications of state demographic trends for future state
68.34budget conditions, including both expected revenue collections and spending for state
69.1government services and local services supported by state revenues. The commission
69.2shall consist of 15 public members, including five members appointed by the governor;
69.3five members appointed by the senate Subcommittee on Committees of the Committee
69.4on Rules and Administration; four members appointed by the speaker of the house of
69.5representatives; and one member appointed by the minority leader of the house of
69.6representatives. The respective appointing authorities must complete their appointments
69.7under this section within 30 days of the effective date of this section. The commissioner of
69.8finance must convene the commission within 30 days of the completion of appointments
69.9under this section. The members shall select their chair at the first meeting. When making
69.10appointments under this section, the appointing authorities must consider the education
69.11and expertise of appointees in fields such as public finance, demography, and public
69.12administration.
69.13    (b) Per diem and expense payments to members, removal of members, and vacancies
69.14are governed by Minnesota Statutes, section 15.059.
69.15    (c) The commissioners of finance and revenue must provide data, analysis, and staff
69.16support required by the commission to complete the study, including, but not limited to,
69.17the effect of expected demographic changes over the next 25 years on state tax bases and
69.18on existing state programs and appropriations. In preparing the study, the commission
69.19shall consult with and use the services of the state demographer to estimate the changing
69.20profile of the Minnesota population by age and other factors relevant to the study. The
69.21commission may also contract with appropriate consultants and experts as needed to
69.22complete the study.
69.23    (d) In completing the study, the commission must consider:
69.24    (1) the effect of expected demographic changes over the next 25 years on the tax
69.25base and revenue collections for state income and sales tax, or other state taxes;
69.26    (2) estimates of tax revenue collections for the years 2012, 2017, 2022, 2027, and
69.272032, taking into account the sensitivity of the results for changes in estimated migration
69.28rates, labor force participation by older individuals, and other shares of capital versus labor;
69.29    (3) the effect of demographic trends on entitlement programs and other large state
69.30appropriations relative to current budget commitments;
69.31    (4) relative trends in spending for state programs including trends identified in the
69.32fast growing expenditures report completed under Minnesota Statutes, section 16A.103,
69.33subdivision 4; and
69.34    (5) the structure of the state budget with regard to budget stability and flexibility.
69.35    (e) The commission may make recommendations for state tax or budget policy
69.36changes, including recommendations for changes in tax base, mix of tax types, state
70.1and local finance relationships, entitlements, or budget structure. The commission shall
70.2present preliminary results to the chairs of the legislative committees with jurisdiction
70.3over finance and taxes by February 1, 2008, and a final written report to the same chairs by
70.4January 15, 2009, in compliance with Minnesota Statutes, sections 3.195 and 3.197.
70.5    (f) This section expires on June 30, 2009.

70.6    Sec. 86. REVISOR'S INSTRUCTION.
70.7    In the next and subsequent editions of Minnesota Statutes and Minnesota Rules, the
70.8revisor of statutes must replace references to the Department of Employee Relations and
70.9commissioner of employee relations with references to the appropriate department and
70.10commissioner specified in section 86. The revisor of statutes, in consultation with affected
70.11commissioners of state agencies, must prepare a bill for introduction in the 2008 legislative
70.12session making other statutory changes needed to implement or conform with section 86.
70.13EFFECTIVE DATE.This section is effective the day following final enactment.

70.14    Sec. 87. REPEALER.
70.15Minnesota Statutes 2006, sections 16A.102, subdivisions 1, 2, and 3; 16B.055,
70.16subdivisions 2 and 3; 16C.055, subdivision 1; 16C.08, subdivision 4a; 69.051, subdivision
70.171c; and 359.085, subdivision 8, are repealed.

70.18ARTICLE 3
70.19BEST VALUE CONTRACTS

70.20    Section 1. Minnesota Statutes 2006, section 16C.02, is amended by adding a
70.21subdivision to read:
70.22    Subd. 4a. Best value; construction. For purposes of construction, building,
70.23alteration, improvement, or repair services, "best value" describes the result determined by
70.24a procurement method that considers price and performance criteria, which may include,
70.25but are not limited to:
70.26    (1) the quality of the vendor's or contractor's performance on previous projects;
70.27    (2) the timeliness of the vendor's or contractor's performance on previous projects;
70.28    (3) the level of customer satisfaction with the vendor's or contractor's performance
70.29on previous projects;
70.30    (4) the vendor's or contractor's record of performing previous projects on budget and
70.31ability to minimize cost overruns;
70.32    (5) the vendor's or contractor's ability to minimize change orders;
71.1    (6) the vendor's or contractor's ability to prepare appropriate project plans;
71.2    (7) the vendor's or contractor's technical capacities;
71.3    (8) the individual qualifications of the contractor's key personnel; or
71.4    (9) the vendor's or contractor's ability to assess and minimize risks.
71.5    "Performance on previous projects" does not include the exercise or assertion of a
71.6person's legal rights. This definition does not apply to sections 16C.32, 16C.33, 16C.34,
71.7and 16C.35.

71.8    Sec. 2. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision
71.9to read:
71.10    Subd. 20. Vendor. "Vendor" means a business, including a construction contractor
71.11or a natural person, and includes both if the natural person is engaged in a business.

71.12    Sec. 3. Minnesota Statutes 2006, section 16C.03, subdivision 3, is amended to read:
71.13    Subd. 3. Acquisition authority. The commissioner shall acquire all goods, services,
71.14and utilities needed by agencies. The commissioner shall acquire goods, services, and
71.15utilities by requests for bids, requests for proposals, reverse auctions as provided in
71.16section 16C.10, subdivision 7, or other methods provided by law, unless a section of law
71.17requires a particular method of acquisition to be used. The commissioner shall make all
71.18decisions regarding acquisition activities. The determination of the acquisition method
71.19and all decisions involved in the acquisition process, unless otherwise provided for by
71.20law, shall be based on best value which includes an evaluation of price and may include
71.21other considerations including, but not limited to, environmental considerations, quality,
71.22and vendor performance. A best value determination must be based on the evaluation
71.23criteria detailed in the solicitation document. If criteria other than price are used, the
71.24solicitation document must state the relative importance of price and other factors. Unless
71.25it is determined by the commissioner that an alternative solicitation method provided by
71.26law should be used to determine best value, a request for bid must be used to solicit
71.27formal responses for all building and construction contracts. Any or all responses may
71.28be rejected. When using the request for bid process, the bid must be awarded to the
71.29lowest responsive and responsible bidder, taking into consideration conformity with
71.30the specifications, terms of delivery, the purpose for which the contract or purchase is
71.31intended, the status and capability of the vendor, and other considerations imposed in the
71.32request for bids. The commissioner may decide which is the lowest responsible bidder
71.33for all purchases and may use the principles of life-cycle costing, where appropriate, in
72.1determining the lowest overall bid. The duties set forth in this subdivision are subject to
72.2delegation pursuant to this section.

72.3    Sec. 4. Minnesota Statutes 2006, section 16C.03, is amended by adding a subdivision
72.4to read:
72.5    Subd. 3a. Acquisition authority; construction contracts. For all building and
72.6construction contracts, the commissioner shall award contracts pursuant to section
72.716C.28, and "best value" shall be defined and applied as set forth in sections 16C.02,
72.8subdivision 4a, and 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
72.9The duties set forth in this subdivision are subject to delegation pursuant to this section.
72.10The commissioner shall establish procedures for developing and awarding best value
72.11requests for proposals for construction projects. The criteria to be used to evaluate the
72.12proposals must be included in the solicitation document and must be evaluated in an open
72.13and competitive manner.

72.14    Sec. 5. Minnesota Statutes 2006, section 16C.03, is amended by adding a subdivision
72.15to read:
72.16    Subd. 19. Training. Any personnel administering procurement procedures for a
72.17user of best value procurement or any consultant retained by a local unit of government to
72.18prepare or evaluate solicitation documents must be trained, either by the department or
72.19through other training, in the request for proposals process for best value contracting for
72.20construction projects. The commissioner may establish a training program for state and
72.21local officials, and vendors and contractors, on best value procurement for construction
72.22projects, including those governed by section 16C.28. If the commissioner establishes
72.23such a training program, the state may charge a fee for providing training.

72.24    Sec. 6. Minnesota Statutes 2006, section 16C.26, is amended to read:
72.2516C.26 COMPETITIVE BIDS OR PROPOSALS.
72.26    Subdivision 1. Application. Except as otherwise provided by sections 16C.10,
72.2716C.26 and 16C.27, all contracts for building and construction or repairs must be based on
72.28competitive bids or proposals. "Competitive proposals" specifically refers to the method
72.29of procurement described in section 16C.28, subdivision 1, paragraph (a), clause (2),
72.30and paragraph (c).
72.31    Subd. 2. Requirement contracts. Standard requirement price contracts for building
72.32and construction must be established by competitive bids as provided in subdivision 1.
72.33The standard requirement price contracts may contain escalation clauses and may provide
73.1for a negotiated price increase or decrease based upon a demonstrable industrywide or
73.2regional increase or decrease in the vendor's costs or for the addition of similar products or
73.3replacement items not significant to the total value of existing contracts. The term of these
73.4contracts may not exceed five years including all extensions.
73.5    Subd. 3. Publication of notice; expenditures over $25,000. If the amount of an
73.6expenditure is estimated to exceed $25,000, bids or proposals must be solicited by public
73.7notice in a manner designated by the commissioner. To the extent practical, this must
73.8include posting on a state Web site. For expenditures over $50,000, when a call for bids is
73.9issued, the commissioner shall solicit sealed bids by providing notices to all prospective
73.10bidders known to the commissioner by posting notice on a state Web site at least seven
73.11days before the final date of submitting bids. All bids over $50,000 must be sealed when
73.12they are received and must be opened in public at the hour stated in the notice. All
73.13proposals responsive to a request for proposals according to section 16C.28, subdivision
73.141, paragraph (a), clause (2), and paragraph (c), shall be submitted and evaluated in the
73.15manner described in the request for proposals, regardless of the dollar amount. All original
73.16bids and proposals and all documents pertaining to the award of a contract must be retained
73.17and made a part of a permanent file or record and remain open to public inspection.
73.18    Subd. 4. Building and construction contracts; $50,000 or less. An informal bid
73.19may be used for building, construction, and repair contracts that are estimated at less than
73.20$50,000. Informal bids must be authenticated by the bidder in a manner specified by the
73.21commissioner. Alternatively, a request for proposals may be issued according to section
73.2216C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c), for such contracts.
73.23    Subd. 5. Standard specifications, security. Contracts must be based on the
73.24standard specifications prescribed and enforced by the commissioner under this chapter,
73.25unless otherwise expressly provided or as authorized under section 16C.28, subdivision
73.261, paragraph (a), clause (2), and paragraph (c). Each bidder for a contract vendor or
73.27contractor must furnish security approved by the commissioner to ensure the making of
73.28the contract being bid for.
73.29    Subd. 6. Noncompetitive bids. Agencies are encouraged to contract with small
73.30targeted group businesses designated under section 16C.16 when entering into contracts
73.31that are not subject to competitive bidding procedures.

73.32    Sec. 7. Minnesota Statutes 2006, section 16C.27, subdivision 1, is amended to read:
73.33    Subdivision 1. Single source of supply. Competitive bidding is or proposals are not
73.34required for contracts clearly and legitimately limited to a single source of supply, and the
73.35contract price may be best established by direct negotiation.

74.1    Sec. 8. Minnesota Statutes 2006, section 16C.28, is amended to read:
74.216C.28 CONTRACTS; AWARD.
74.3    Subdivision 1. Lowest responsible bidder Award requirements. (a) All state
74.4building and construction contracts entered into by or under the supervision of the
74.5commissioner or an agency for which competitive bids or proposals are required must
74.6be awarded to the lowest responsible bidder, taking into consideration conformity with
74.7the specifications, terms of delivery, the purpose for which the contract is intended, the
74.8status and capability of the vendor, and other considerations imposed in the call for bids.
74.9The commissioner may decide which is the lowest responsible bidder for all contracts
74.10and may use the principles of life cycle costing, where appropriate, in determining the
74.11lowest overall bid. The head of the interested agency shall make the decision, subject
74.12to the approval of the commissioner. Any or all bids may be rejected. In a case where
74.13competitive bids are required and where all bids are rejected, new bids, if solicited, must
74.14be called for as in the first instance, unless otherwise provided by law. may be awarded to
74.15either of the following:
74.16    (1) the lowest responsible bidder, taking into consideration conformity with the
74.17specifications, terms of delivery, the purpose for which the contract is intended, the status
74.18and capability of the vendor or contractor, other considerations imposed in the call for
74.19bids, and, where appropriate, principles of life-cycle costing; or
74.20    (2) the vendor or contractor offering the best value, taking into account the
74.21specifications of the request for proposals, the price and performance criteria as set forth
74.22in section 16C.02, subdivision 4a, and described in the solicitation document.
74.23    (b) The vendor or contractor must secure bonding, commercial general insurance
74.24coverage, and workers' compensation insurance coverage under paragraph (a), clause
74.25(1) or (2). The commissioner shall determine whether to use the procurement process
74.26described in paragraph (a), clause (1), or the procurement process described in paragraph
74.27(a), clause (2), and paragraph (c). If the commissioner uses the method in paragraph
74.28(a), clause (2), and paragraph (c), the head of the agency shall determine which vendor
74.29or contractor offers the best value, subject to the approval of the commissioner. Any
74.30or all bids or proposals may be rejected.
74.31    (c) When using the procurement process described in subdivision 1, paragraph (a),
74.32clause (2), the solicitation document must state the relative weight of price and other
74.33selection criteria. The award must be made to the vendor or contractor offering the
74.34best value applying the weighted selection criteria. If an interview of the vendor's or
74.35contractor's personnel is one of the selection criteria, the relative weight of the interview
74.36shall be stated in the solicitation document and applied accordingly.
75.1    Subd. 1a. Establishment and purpose. (a) The state recognizes the importance of
75.2the inclusion of a best value contracting system for construction as an alternative to the
75.3current low-bid system of procurement. In order to accomplish that goal, state and local
75.4governmental entities shall be able to choose the best value system in different phases.
75.5    (b) "Best value" means the procurement method defined in section 16C.02,
75.6subdivision 4a.
75.7    (c) The following entities are eligible to participate in phase I:
75.8    (1) state agencies;
75.9    (2) counties;
75.10    (3) cities; and
75.11    (4) school districts with the highest 25 percent enrollment of students in the state.
75.12Phase I begins on the effective date of this section.
75.13    (d) The following entities are eligible to participate in phase II:
75.14    (1) those entities included in phase I; and
75.15    (2) school districts with the highest 50 percent enrollment of students in the state.
75.16Phase II begins two years from the effective date of this section.
75.17    (e) The following entities are eligible to participate in phase III:
75.18    (1) all entities included in phases I and II; and
75.19    (2) all other townships, school districts, and political subdivisions in the state.
75.20Phase III begins three years from the effective date of this section.
75.21    (f) The commissioner or any agency for which competitive bids or proposals are
75.22required may not use best value contracting as defined in section 16C.02, subdivision 4a,
75.23for more than one project annually, or 20 percent of its projects, whichever is greater, in
75.24each of the first three fiscal years in which best value construction contracting is used.
75.25    Subd. 2. Alterations and erasures. A bid containing an alteration or erasure of
75.26any price contained in the bid which is used in determining the lowest responsible bid
75.27must be rejected unless the alteration or erasure is corrected in a manner that is clear and
75.28authenticated by an authorized representative of the responder. An alteration or erasure
75.29may be crossed out and the correction printed in ink or typewritten adjacent to it and
75.30initialed by an authorized representative of the responder.
75.31    Subd. 3. Special circumstances. The commissioner may reject the bid or proposal
75.32of any bidder vendor or contractor who has failed to perform a previous contract with
75.33the state. In the case of identical low bids from two or more bidders, the commissioner
75.34may use negotiated procurement methods with the tied low bidders for that particular
75.35transaction so long as the price paid does not exceed the low tied bid price. The
76.1commissioner may award contracts to more than one bidder vendor or contractor in
76.2accordance with subdivision 1, if doing so does not decrease the service level or diminish
76.3the effect of competition.
76.4    Subd. 4. Record. A record must be kept of all bids or proposals, including names of
76.5bidders, amounts of bids or proposals, and each successful bid or proposal. This record is
76.6open to public inspection, subject to section 13.591 and other applicable law.
76.7    Subd. 5. Preferences not cumulative. The preferences under sections 16B.121,
76.816C.06, subdivision 7 , and 16C.16 apply, but are not cumulative. The total percentage
76.9of preference granted on a contract may not exceed the highest percentage of preference
76.10allowed for that contract under any one of those sections.

76.11    Sec. 9. Minnesota Statutes 2006, section 103D.811, subdivision 3, is amended to read:
76.12    Subd. 3. Awarding of contract. (a) At a time and place specified in the bid notice,
76.13the managers may accept or reject any or all bids and may award the contract to the lowest
76.14responsible bidder. The bidder to whom the contract is to be awarded must give a bond,
76.15with ample security, conditioned by satisfactory completion of the contract.
76.16    (b) Bids must not be considered which in the aggregate exceed by more than 30
76.17percent the total estimated cost of construction or implementation.
76.18    (c) As an alternative to the procurement method described in paragraph (a), the
76.19managers may issue a request for proposals and award the contract to the vendor or
76.20contractor offering the best value as described in section 16C.28, subdivision 1, paragraph
76.21(a), clause (2), and paragraph (c).
76.22    (d) The contract must be in writing and be accompanied by or refer to the plans and
76.23specifications for the work to be done as prepared by the engineer for the watershed
76.24district. The plans and specifications shall become a part of the contract.
76.25    (d) (e) The contract shall be approved by the managers and signed by the president,
76.26secretary, and contractor.

76.27    Sec. 10. Minnesota Statutes 2006, section 103E.505, subdivision 5, is amended to read:
76.28    Subd. 5. How contract may be awarded. The contract may be awarded in one
76.29job, in sections, or separately for labor and material and must may be let to the lowest
76.30responsible bidder. Alternatively, the contract may be awarded to the vendor or contractor
76.31offering the best value under a request for proposals as described in section 16C.28,
76.32subdivision 1, paragraph (a), clause (2), and paragraph (c).

76.33    Sec. 11. Minnesota Statutes 2006, section 116A.13, subdivision 5, is amended to read:
77.1    Subd. 5. How job may be let. The job may be let in one job, or in sections, or
77.2separately for labor and material, and shall may be let to the lowest responsible bidder or
77.3bidders therefor. Alternatively, the contract may be awarded to the vendor or contractor
77.4offering the best value under a request for proposals as described in section 16C.28,
77.5subdivision 1, paragraph (a), clause (2), and paragraph (c).

77.6    Sec. 12. Minnesota Statutes 2006, section 123B.52, subdivision 1, is amended to read:
77.7    Subdivision 1. Contracts. A contract for work or labor, or for the purchase of
77.8furniture, fixtures, or other property, except books registered under the copyright laws, or
77.9for the construction or repair of school houses, the estimated cost or value of which shall
77.10exceed that specified in section 471.345, subdivision 3, must not be made by the school
77.11board without first advertising for bids or proposals by two weeks' published notice in the
77.12official newspaper. This notice must state the time and place of receiving bids and contain
77.13a brief description of the subject matter.
77.14    Additional publication in the official newspaper or elsewhere may be made as the
77.15board shall deem necessary.
77.16    After taking into consideration conformity with the specifications, terms of delivery,
77.17and other conditions imposed in the call for bids, every such contract for which a call for
77.18bids has been issued must be awarded to the lowest responsible bidder, be duly executed
77.19in writing, and be otherwise conditioned as required by law. The person to whom the
77.20contract is awarded shall give a sufficient bond to the board for its faithful performance.
77.21Notwithstanding section 574.26 or any other law to the contrary, on a contract limited
77.22to the purchase of a finished tangible product, a board may require, at its discretion, a
77.23performance bond of a contractor in the amount the board considers necessary. A record
77.24must be kept of all bids, with names of bidders and amount of bids, and with the successful
77.25bid indicated thereon. A bid containing an alteration or erasure of any price contained in
77.26the bid which is used in determining the lowest responsible bid must be rejected unless the
77.27alteration or erasure is corrected as provided in this section. An alteration or erasure may
77.28be crossed out and the correction thereof printed in ink or typewritten adjacent thereto and
77.29initialed in ink by the person signing the bid. In the case of identical low bids from two or
77.30more bidders, the board may, at its discretion, utilize negotiated procurement methods
77.31with the tied low bidders for that particular transaction, so long as the price paid does not
77.32exceed the low tied bid price. In the case where only a single bid is received, the board
77.33may, at its discretion, negotiate a mutually agreeable contract with the bidder so long as
77.34the price paid does not exceed the original bid. If no satisfactory bid is received, the
77.35board may readvertise. Standard requirement price contracts established for supplies or
78.1services to be purchased by the district must be established by competitive bids. Such
78.2standard requirement price contracts may contain escalation clauses and may provide for a
78.3negotiated price increase or decrease based upon a demonstrable industrywide or regional
78.4increase or decrease in the vendor's costs. Either party to the contract may request that the
78.5other party demonstrate such increase or decrease. The term of such contracts must not
78.6exceed two years with an option on the part of the district to renew for an additional two
78.7years. Contracts for the purchase of perishable food items, except milk for school lunches
78.8and vocational training programs, in any amount may be made by direct negotiation
78.9by obtaining two or more written quotations for the purchase or sale, when possible,
78.10without advertising for bids or otherwise complying with the requirements of this section
78.11or section 471.345, subdivision 3. All quotations obtained shall be kept on file for a
78.12period of at least one year after receipt.
78.13    Every contract made without compliance with the provisions of this section shall be
78.14void. Except in the case of the destruction of buildings or injury thereto, where the public
78.15interest would suffer by delay, contracts for repairs may be made without advertising
78.16for bids.

78.17    Sec. 13. Minnesota Statutes 2006, section 123B.52, is amended by adding a
78.18subdivision to read:
78.19    Subd. 1b. Best value alternative. As an alternative to the procurement method
78.20described in subdivision 1, a contract for construction, building, alteration, improvement,
78.21or repair work may be awarded to the vendor or contractor offering the best value under a
78.22request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause
78.23(2), and paragraph (c).

78.24    Sec. 14. Minnesota Statutes 2006, section 160.17, is amended by adding a subdivision
78.25to read:
78.26    Subd. 2a. Best value alternative. As an alternative to the procurement method
78.27referenced in subdivision 2, counties or towns may issue a request for proposal and award
78.28the contract to the vendor or contractor offering the best value as described in section
78.2916C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

78.30    Sec. 15. Minnesota Statutes 2006, section 160.262, is amended by adding a subdivision
78.31to read:
78.32    Subd. 5. Best value alternative. As an alternative to the procurement method
78.33described in subdivision 4, the commissioner may allow for the award of design-build
79.1contracts for the projects described in subdivision 4 to the vendor or contractor offering
79.2the best value under a request for proposals as described in section 16C.28, subdivision 1,
79.3paragraph (a), clause (2), and paragraph (c).

79.4    Sec. 16. Minnesota Statutes 2006, section 161.32, is amended by adding a subdivision
79.5to read:
79.6    Subd. 1f. Best value alternative. As an alternative to the procurement method
79.7described in subdivisions 1a to 1e, the commissioner may issue a request for proposals
79.8and award the contract to the vendor or contractor offering the best value as described in
79.9section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

79.10    Sec. 17. [161.3206] BEST VALUE CONTRACTING AUTHORITY.
79.11    Notwithstanding sections 16C.25, 161.32, 161.321, or any other law to the contrary,
79.12the commissioner may solicit and award all contracts, other than design-build contracts
79.13governed by section 161.3412, for a project on the basis of a best value selection process
79.14as defined in section 16C.02, subdivision 4a. Section 16C.08 does not apply to this section.

79.15    Sec. 18. Minnesota Statutes 2006, section 161.3412, subdivision 1, is amended to read:
79.16    Subdivision 1. Best value selection for design-build contracts. Notwithstanding
79.17sections 16C.25, 161.32, and 161.321, or any other law to the contrary, the commissioner
79.18may solicit and award a design-build contract for a project on the basis of a best value
79.19selection process. Section 16C.08 does not apply to design-build contracts to which the
79.20commissioner is a party.

79.21    Sec. 19. Minnesota Statutes 2006, section 161.38, subdivision 4, is amended to read:
79.22    Subd. 4. Effects on other law of public contract with commissioner. Whenever
79.23the road authority of any city enters into an agreement with the commissioner pursuant
79.24to this section, and a portion of the cost is to be assessed against benefited property,
79.25the letting of a public contract by the commissioner for the work shall be deemed to
79.26comply with statutory or charter provisions requiring the city (1) to advertise for bids
79.27before awarding a contract for a public improvement, (2) to let the contract to the lowest
79.28responsible bidder or to the vendor or contractor offering the best value, and (3) to require
79.29a performance bond to be filed by the contractor before undertaking the work. The
79.30contract so let by the commissioner and the performance bond required of the contractor
79.31by the commissioner shall be considered to be the contract and bond of the city for the
79.32purposes of complying with the requirements of any applicable law or charter provision,
80.1and the bond shall inure to the benefit of the city and operate for their protection to the
80.2same extent as though they were parties thereto.

80.3    Sec. 20. Minnesota Statutes 2006, section 365.37, is amended by adding a subdivision
80.4to read:
80.5    Subd. 2a. Best value alternative. As an alternative to the procurement method
80.6described in subdivision 2, a contract for construction, building, alteration, improvement,
80.7or repair work may be awarded to the vendor or contractor offering the best value under a
80.8request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause
80.9(2), and paragraph (c).

80.10    Sec. 21. Minnesota Statutes 2006, section 374.13, is amended to read:
80.11374.13 TO ADVERTISE FOR BIDS.
80.12    Subdivision 1. Bidding process. When the plans and specifications are completed
80.13and approved by the city council and the county board, the commission shall, after notice
80.14appropriate to inform possible bidders, obtain bids or proposals for all or any portion of
80.15the work or materials, or both, to be done, performed, or furnished in the construction of
80.16the building. All bids or proposals shall be sealed by the bidders or proposers and filed
80.17with the commission at or before the time specified for the opening of bids or proposals.
80.18At the time and place specified for the opening of bids or proposals, the commission shall
80.19meet, open the bids or proposals, tabulate them, and award the contract or contracts to the
80.20responsible bidder whose bid or proposal is the most favorable to the city or county, or
80.21reject all bids and proposals. If all bids or proposals are rejected, the commission may,
80.22after similar notice, obtain more bids or proposals or may modify or change the plans and
80.23specifications and submit the modified plans and specifications to the city council and the
80.24county board for approval. When the modified or changed plans and specifications are
80.25satisfactory to both the city council and the county board, the plans and specifications
80.26shall be returned to the commission and the commission shall proceed again, after similar
80.27notice, to obtain bids or proposals. Any contract awarded by the commission shall be
80.28subject to approval by the city council and the county board.
80.29    Subd. 2. Best value alternative. As an alternative to the procurement method
80.30described in subdivision 1, the commission may issue a request for proposals and award
80.31the contract to the vendor or contractor offering the best value as described in section
80.3216C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

81.1    Sec. 22. Minnesota Statutes 2006, section 375.21, is amended by adding a subdivision
81.2to read:
81.3    Subd. 1b. Best value alternative. As an alternative to the procurement method
81.4described in subdivision 1, a county board may award a contract for construction, building,
81.5alteration, improvement, or repair work to the vendor or contractor offering the best value
81.6under a request for proposals as described in section 16C.28, subdivision 1, paragraph
81.7(a), clause (2), and paragraph (c).

81.8    Sec. 23. Minnesota Statutes 2006, section 383C.094, is amended by adding a
81.9subdivision to read:
81.10    Subd. 1a. Contracts in excess of $500; best value alternative. As an alternative to
81.11the procurement method described in subdivision 1, the contract may be awarded to the
81.12vendor or contractor offering the best value under a request for proposals as described in
81.13section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

81.14    Sec. 24. Minnesota Statutes 2006, section 412.311, is amended to read:
81.15412.311 CONTRACTS.
81.16    Subdivision 1. Lowest responsible bidder. Except as provided in sections 471.87
81.17to 471.89, no member of a council shall be directly or indirectly interested in any contract
81.18made by the council. Whenever the amount of a contract for the purchase of merchandise,
81.19materials or equipment or for any kind of construction work undertaken by the city is
81.20estimated to exceed the amount specified by section 471.345, subdivision 3, the contract
81.21shall be let to the lowest responsible bidder, after notice has been published once in the
81.22official newspaper at least ten days in advance of the last day for the submission of bids. If
81.23the amount of the contract exceeds $1,000, it shall be entered into only after compliance
81.24with section 471.345.
81.25    Subd. 2. Best value alternative. As an alternative to the procurement method
81.26described in subdivision 1, a contract for construction, building, alteration, improvement,
81.27or repair work may be awarded to the vendor or contractor offering the best value under a
81.28request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause
81.29(2), and paragraph (c).

81.30    Sec. 25. Minnesota Statutes 2006, section 429.041, is amended by adding a subdivision
81.31to read:
81.32    Subd. 2a. Best value alternative. As an alternative to the procurement method
81.33described in subdivision 2, the council may issue a request for proposals and award the
82.1contract to the vendor or contractor offering the best value as described in section 16C.28,
82.2subdivision 1, paragraph (a), clause (2), and paragraph (c).

82.3    Sec. 26. Minnesota Statutes 2006, section 458D.21, is amended by adding a
82.4subdivision to read:
82.5    Subd. 2a. Contracts in excess of $5,000; best value alternative. As an alternative
82.6to the procurement method described in subdivision 2, the board may issue a request for
82.7proposals and award the contract to the vendor or contractor offering the best value as
82.8described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

82.9    Sec. 27. Minnesota Statutes 2006, section 469.015, is amended by adding a subdivision
82.10to read:
82.11    Subd. 1a. Best value alternative. As an alternative to the procurement method
82.12described in subdivision 1, the authority may issue a request for proposals and award the
82.13contract to the vendor or contractor offering the best value under a request for proposals as
82.14described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

82.15    Sec. 28. Minnesota Statutes 2006, section 469.068, subdivision 1, is amended to read:
82.16    Subdivision 1. Contracts; bids; bonds. All construction work and every purchase
82.17of equipment, supplies, or materials necessary in carrying out the purposes of sections
82.18469.048 to 469.068, that involve the expenditure of $1,000 or more, shall be awarded by
82.19contract as provided in this subdivision or in subdivision 1a. Before receiving bids under
82.20sections 469.048 to 469.068, the authority shall publish, once a week for two consecutive
82.21weeks in the official newspaper of the port's city, a notice that bids will be received for the
82.22construction work, or purchase of equipment, supplies, or materials. The notice shall state
82.23the nature of the work, and the terms and conditions upon which the contract is to be let
82.24and name a time and place where the bids will be received, opened, and read publicly,
82.25which time shall be not less than seven days after the date of the last publication. After
82.26the bids have been received, opened, read publicly, and recorded, the commissioners
82.27shall award the contract to the lowest responsible bidder, reserving the right to reject
82.28any or all bids. The contract shall be executed in writing and the person to whom the
82.29contract is awarded shall give sufficient bond to the board for its faithful performance. If
82.30no satisfactory bid is received, the port authority may readvertise, or, by an affirmative
82.31vote of two of its commissioners in the case of a three-member commission, or five of
82.32its members in the case of a seven-member commission, may authorize the authority
82.33to perform any part or parts of any construction work by day labor under conditions it
83.1prescribes. The commissioners may establish reasonable qualifications to determine
83.2the fitness and responsibility of bidders, and require bidders to meet the qualifications
83.3before bids are accepted. If the commissioners by a two-thirds or five-sevenths vote
83.4declare that an emergency exists requiring the immediate purchase of any equipment or
83.5material or supplies at a cost in excess of $1,000, but not exceeding $5,000, in amount,
83.6or making of emergency repairs, it shall not be necessary to advertise for bids, but the
83.7material, equipment, or supplies may be purchased in the open market at the lowest price
83.8obtainable, or the emergency repairs may be contracted for or performed without securing
83.9formal competitive bids. An emergency, for purposes of this section, is unforeseen
83.10circumstances or conditions which result in the jeopardizing of human life or property.
83.11    In all contracts involving the employment of labor, the commissioners shall stipulate
83.12conditions they deem reasonable, as to the hours of labor and wages and may stipulate as
83.13to the residence of employees to be employed by the contractors.
83.14    Bonds shall be required from contractors for any works of construction as provided
83.15in and subject to all the provisions of sections 574.26 to 574.31.

83.16    Sec. 29. Minnesota Statutes 2006, section 469.068, is amended by adding a subdivision
83.17to read:
83.18    Subd. 1a. Contracts; best value alternative. As an alternative to the procurement
83.19method described in subdivision 1, a contract may be awarded to the vendor or contractor
83.20offering the best value under a request for proposals as described in section 16C.28,
83.21subdivision 1, paragraph (a), clause (2), and paragraph (c).

83.22    Sec. 30. Minnesota Statutes 2006, section 469.101, is amended by adding a subdivision
83.23to read:
83.24    Subd. 5a. Construction contracts. For all contracts for construction, alteration,
83.25repair, or maintenance work, the authority may award contracts to the vendor offering the
83.26best value, and "best value" shall be defined and applied as set forth in sections 16C.02,
83.27subdivision 4a, and 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
83.28Alternatively, the authority may award all contracts for construction, alteration, repair,
83.29or maintenance work to the lowest responsible bidder, reserving the right to reject any
83.30or all bids.

83.31    Sec. 31. Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision
83.32to read:
84.1    Subd. 3a. Contracts over $50,000; best value alternative. As an alternative to the
84.2procurement method described in subdivision 3, municipalities may award a contract for
84.3construction, alteration, repair, or maintenance work to the vendor or contractor offering
84.4the best value under a request for proposals as described in section 16C.28, subdivision 1,
84.5paragraph (a), clause (2), and paragraph (c).

84.6    Sec. 32. Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision
84.7to read:
84.8    Subd. 4a. Contracts from $10,000 to $50,000; best value alternative. As an
84.9alternative to the procurement method described in subdivision 4, municipalities may
84.10award a contract for construction, alteration, repair, or maintenance work to the vendor or
84.11contractor offering the best value under a request for proposals as described in section
84.1216C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

84.13    Sec. 33. Minnesota Statutes 2006, section 471.345, subdivision 5, is amended to read:
84.14    Subd. 5. Contracts less than $10,000. If the amount of the contract is estimated
84.15to be $10,000 or less, the contract may be made either upon quotation or in the open
84.16market, in the discretion of the governing body. If the contract is made upon quotation
84.17it shall be based, so far as practicable, on at least two quotations which shall be kept on
84.18file for a period of at least one year after their receipt. Alternatively, municipalities may
84.19award a contract for construction, alteration, repair, or maintenance work to the vendor or
84.20contractor offering the best value under a request for proposals as described in section
84.2116C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

84.22    Sec. 34. Minnesota Statutes 2006, section 473.523, is amended by adding a subdivision
84.23to read:
84.24    Subd. 1a. Contracts over $50,000; best value alternative. As an alternative to
84.25the procurement method described in subdivision 1, the council may issue a request for
84.26proposals and award the contract to the vendor or contractor offering the best value
84.27under a request for proposals as described in section 16C.28, subdivision 1, paragraph
84.28(a), clause (2), and paragraph (c).

84.29    Sec. 35. Minnesota Statutes 2006, section 473.756, subdivision 12, is amended to read:
84.30    Subd. 12. Contracts. The authority may enter into a development agreement with
84.31the team, the county, or any other entity relating to the construction, financing, and use of
84.32the ballpark and related facilities and public infrastructure. The authority may contract
85.1for materials, supplies, and equipment in accordance with sections 471.345 and 473.754,
85.2except that the authority, with the consent of the county, may employ or contract with
85.3persons, firms, or corporations to perform one or more or all of the functions of architect,
85.4engineer, or construction manager with respect to all or any part of the ballpark and
85.5public infrastructure. Alternatively, at the request of the team and with the consent of the
85.6county, the authority shall authorize the team to provide for the design and construction
85.7of the ballpark and related public infrastructure, subject to terms of Laws 2006, chapter
85.8257. The construction manager may enter into contracts with contractors for labor,
85.9materials, supplies, and equipment for the construction of the ballpark and related public
85.10infrastructure through the process of public bidding, except that the construction manager
85.11may, with the consent of the authority or the team:
85.12    (1) narrow the listing of eligible bidders to those which the construction manager
85.13determines to possess sufficient expertise to perform the intended functions;
85.14    (2) award contracts to the contractors that the construction manager determines
85.15provide the best value under a request for proposals as described in section 16C.28,
85.16subdivision 1, paragraph (a), clause (2), and paragraph (c), which are not required to be
85.17the lowest responsible bidder; and
85.18    (3) for work the construction manager determines to be critical to the completion
85.19schedule, award contracts on the basis of competitive proposals or perform work with
85.20its own forces without soliciting competitive bids if the construction manager provides
85.21evidence of competitive pricing.
85.22The authority shall require that the construction manager certify, before the contract is
85.23signed, a fixed and stipulated construction price and completion date to the authority
85.24and post a performance bond in an amount at least equal to 100 percent of the certified
85.25price, to cover any costs which may be incurred in excess of the certified price, including
85.26but not limited to costs incurred by the authority or loss of revenues resulting from
85.27incomplete construction on the completion date. The authority may secure surety bonds
85.28as provided in section 574.26, securing payment of just claims in connection with all
85.29public work undertaken by it. Persons entitled to the protection of the bonds may enforce
85.30them as provided in sections 574.28 to 574.32, and shall not be entitled to a lien on any
85.31property of the authority under the provisions of sections 514.01 to 514.16. Contracts for
85.32construction and operation of the ballpark must include programs, including Youthbuild,
85.33to provide for participation by small local businesses and businesses owned by people of
85.34color, and the inclusion of women and people of color in the workforces of contractors
85.35and ballpark operators. The construction of the ballpark is a "project" as that term is
86.1defined in section 177.42, subdivision 2, and is subject to the prevailing wage law under
86.2sections 177.41 to 177.43.