Minnesota Legislature
HF 749
1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to state government; appropriating money for 1.3 the general legislative and administrative expenses of 1.4 state government; modifying provisions related to 1.5 state government operations; requiring certain 1.6 contractor bonding; requiring licensure of certain 1.7 gambling equipment salespersons; modifying fee 1.8 provisions and providing for disposition of various 1.9 fees and other revenue; modifying provisions of 1.10 various state boards and commissions; authorizing 1.11 rulemaking; providing for a license fee for fireworks 1.12 retailers; requiring studies; modifying lawful 1.13 gambling provisions; amending Minnesota Statutes 2002, 1.14 sections 3.099, subdivision 3; 3.885, subdivision 1; 1.15 3.971, subdivision 2; 6.48; 6.49; 6.54; 6.55; 6.64; 1.16 6.65; 6.66; 6.67; 6.68, subdivision 1; 6.70; 6.71; 1.17 6.74; 8.06; 10A.02, by adding subdivisions; 10A.04, 1.18 subdivisions 2, 4, by adding a subdivision; 10A.09, 1.19 subdivision 6, by adding a subdivision; 10A.31, 1.20 subdivisions 1, 3, 4; 14.48, by adding a subdivision; 1.21 15.50, subdivision 1; 16A.11, subdivision 3; 16A.17, 1.22 by adding a subdivision; 16A.40; 16A.501; 16A.642, 1.23 subdivision 1; 16B.24, subdivision 5; 16B.35, 1.24 subdivision 1; 16B.465, subdivisions 1a, 7; 16B.47; 1.25 16B.48, subdivision 2; 16B.49; 16B.58, by adding a 1.26 subdivision; 16C.05, subdivision 2; 16C.08, 1.27 subdivisions 2, 3, 4, by adding a subdivision; 16C.09; 1.28 16C.10, subdivision 7; 16E.01, subdivision 3; 16E.07, 1.29 subdivision 9; 16E.09, subdivision 1; 69.772, 1.30 subdivision 2; 115A.929; 116J.8771; 136F.77, 1.31 subdivision 3; 179A.03, subdivision 7; 192.501, 1.32 subdivision 2; 197.608; 240.03; 240.10; 240.15, 1.33 subdivision 6; 240.155, subdivision 1; 240A.03, 1.34 subdivisions 10, 15; 240A.04; 240A.06, subdivision 1; 1.35 256B.435, subdivision 2a; 268.186; 270.052; 270.44; 1.36 270A.07, subdivision 1; 289A.08, subdivision 16; 1.37 306.95; 349.12, subdivisions 4, 18, 25, 34, by adding 1.38 subdivisions; 349.151, subdivisions 4, 4b, by adding a 1.39 subdivision; 349.153; 349.155, subdivision 3; 349.16, 1.40 subdivision 6, by adding a subdivision; 349.161, 1.41 subdivisions 1, 4, 5; 349.162, subdivision 1; 349.163, 1.42 subdivisions 2, 3, 6; 349.164, subdivision 4; 349.165, 1.43 subdivision 3; 349.166, subdivisions 1, 2; 349.167, 1.44 subdivision 6; 349.17, subdivisions 3, 6, 7, by adding 1.45 a subdivision; 349.1711, subdivision 2; 349.18, 1.46 subdivision 1; 349.19, by adding a subdivision; 2.1 349.191, subdivisions 1, 1a; 349.211, subdivision 1, 2.2 by adding subdivisions; 349A.08, subdivision 5; 2.3 352D.04, by adding a subdivision; 356.611, subdivision 2.4 1; 458D.17, subdivision 5; 471.696; 471.999; 474A.21; 2.5 477A.014, subdivision 4; 624.20, subdivision 1; Laws 2.6 1998, chapter 366, section 80, as amended; proposing 2.7 coding for new law in Minnesota Statutes, chapters 3A; 2.8 6; 10A; 15A; 16C; 43A; 326; 349; repealing Minnesota 2.9 Statutes 2002, sections 3.305, subdivision 5; 3.9222; 2.10 3.971, subdivision 8; 3A.11; 4A.055; 6.77; 12.221, 2.11 subdivision 5; 16A.151, subdivision 5; 16A.87; 16B.50; 2.12 16C.07; 43A.04, subdivision 10; 43A.047; 43A.17, 2.13 subdivision 9; 149A.97, subdivision 8; 163.10; 2.14 240A.08; 306.97; 349.2127, subdivision 9; Minnesota 2.15 Rules, part 1950.1070. 2.16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.17 ARTICLE 1 2.18 APPROPRIATIONS 2.19 Section 1. [STATE GOVERNMENT APPROPRIATIONS.] 2.20 The sums shown in the columns marked "APPROPRIATIONS" are 2.21 appropriated from the general fund, or another named fund, to 2.22 the agencies and for the purposes specified in this act, to be 2.23 available for the fiscal years indicated for each purpose. The 2.24 figures "2004" and "2005," where used in this act, mean that the 2.25 appropriation or appropriations listed under them are available 2.26 for the year ending June 30, 2004, or June 30, 2005, 2.27 respectively. The term "first year" means the fiscal year 2.28 ending June 30, 2004, and the term "second year" means the 2.29 fiscal year ending June 30, 2005. 2.30 SUMMARY BY FUND 2.31 2004 2005 TOTAL 2.32 General $ 261,933,000 $ 258,258,000 $ 520,191,000 2.33 Health Care 2.34 Access 1,782,000 1,782,000 3,564,000 2.35 State Government 2.36 Special Revenue 24,653,000 28,033,000 52,686,000 2.37 Environmental 332,000 248,000 580,000 2.38 Solid Waste 672,000 672,000 1,344,000 2.39 Special Revenue 2,947,000 2,947,000 5,894,000 2.40 Highway User Tax 2.41 Distribution 2,097,000 2,097,000 4,194,000 2.42 Workers' 2.43 Compensation 7,286,000 7,349,000 14,635,000 2.44 TOTAL $ 301,702,000 $ 301,386,000 $ 603,088,000 2.45 APPROPRIATIONS 3.1 Available for the Year 3.2 Ending June 30 3.3 2004 2005 3.4 Sec. 2. LEGISLATURE 3.5 Subdivision 1. Total 3.6 Appropriation $ 56,426,000 $ 56,427,000 3.7 Summary by Fund 3.8 General 56,298,000 56,299,000 3.9 Health Care Access 128,000 128,000 3.10 The amounts that may be spent from this 3.11 appropriation for each program are 3.12 specified in the following subdivisions. 3.13 Subd. 2. Senate 19,107,000 19,107,000 3.14 Subd. 3. House of 3.15 Representatives 26,135,000 26,136,000 3.16 Subd. 4. Legislative 3.17 Coordinating Commission 11,184,000 11,184,000 3.18 Summary by Fund 3.19 General 11,056,000 11,056,000 3.20 Health Care Access 128,000 128,000 3.21 During the biennium ending June 30, 3.22 2005, the legislative coordinating 3.23 commission, the office of the 3.24 legislative auditor, and the office of 3.25 the revisor of statutes are not subject 3.26 to the limitations in uses of funds 3.27 provided under Minnesota Statutes, 3.28 section 16A.281. 3.29 During the biennium ending June 30, 3.30 2005, a legislative commission or 3.31 subcommittee of the legislative 3.32 coordinating commission may by 3.33 resolution adopt per diem payments for 3.34 members attending commission meetings 3.35 that are less than the payments 3.36 permitted by rules of the house of 3.37 representatives and the senate. 3.38 Sec. 3. GOVERNOR AND 3.39 LIEUTENANT GOVERNOR 3,586,000 3,586,000 3.40 This appropriation is to fund the 3.41 office of the governor and lieutenant 3.42 governor. 3.43 $19,000 the first year and $19,000 the 3.44 second year are for necessary expenses 3.45 in the normal performance of the 3.46 governor's and lieutenant governor's 3.47 duties for which no other reimbursement 3.48 is provided. 3.49 Sec. 4. ATTORNEY GENERAL 21,816,000 21,795,000 3.50 Summary by Fund 3.51 General 20,059,000 20,059,000 4.1 State Government 4.2 Special Revenue 1,612,000 1,591,000 4.3 Environmental 145,000 145,000 4.4 Solid Waste 484,000 484,000 4.5 Sec. 5. STATE AUDITOR 8,376,000 8,376,000 4.6 Sec. 6. SECRETARY OF STATE 5,912,000 6,032,000 4.7 Sec. 7. CAMPAIGN FINANCE AND 4.8 PUBLIC DISCLOSURE BOARD 712,000 712,000 4.9 Sec. 8. INVESTMENT BOARD 2,167,000 2,167,000 4.10 Sec. 9. ADMINISTRATIVE 4.11 HEARINGS 7,186,000 7,249,000 4.12 This appropriation is from the workers' 4.13 compensation fund. 4.14 Fee rates charged during fiscal years 4.15 2004 and 2005 by the Administrative Law 4.16 Division of the Office of 4.17 Administrative Hearings must be reduced 4.18 by ten percent from fiscal year 2003 4.19 levels. 4.20 Sec. 10. OFFICE OF STRATEGIC 4.21 AND LONG-RANGE PLANNING 3,264,000 3,264,000 4.22 Sec. 11. ADMINISTRATION 4.23 Subdivision 1. Total 4.24 Appropriation 44,553,000 47,454,000 4.25 Summary by Fund 4.26 General 21,912,000 21,412,000 4.27 State Government 4.28 Special Revenue 22,641,000 26,042,000 4.29 The amounts that may be spent from this 4.30 appropriation for each program are 4.31 specified in the following subdivisions. 4.32 Subd. 2. Operations Management 4.33 2,669,000 2,669,000 4.34 Subd. 3. Office of Technology 4.35 2,479,000 2,479,000 4.36 Subd. 4. Intertechnologies 4.37 Group 4.38 22,641,000 26,042,000 4.39 This appropriation is from the state 4.40 government special revenue fund for 4.41 recurring costs of 911 emergency 4.42 telephone service. 4.43 Subd. 5. Facilities 4.44 Management 4.45 11,803,000 11,303,000 5.1 $7,888,000 the first year and 5.2 $7,888,000 the second year are for 5.3 office space costs of the legislature 5.4 and veterans organizations, for 5.5 ceremonial space, and for statutorily 5.6 free space. 5.7 $500,000 the first year is for onetime 5.8 funding of agency relocation expenses. 5.9 $262,000 the first year and $262,000 5.10 the second year are for administration 5.11 of the Capitol Area Architectural and 5.12 Planning Board. 5.13 $1,225,000 in the first year and 5.14 $1,225,000 in the second year of the 5.15 balance in the facility repair and 5.16 replacement account in the state 5.17 government special revenue fund is 5.18 canceled to the general fund. This 5.19 amount is in addition to amounts 5.20 transferred under Minnesota Statutes, 5.21 section 16B.24, subdivision 5. 5.22 Subd. 6. Management 5.23 Services 5.24 2,830,000 2,830,000 5.25 $196,000 the first year and $196,000 5.26 the second year are for the office of 5.27 the state archaeologist. 5.28 $74,000 the first year and $74,000 the 5.29 second year are for the developmental 5.30 disabilities council. 5.31 Subd. 7. Public Broadcasting 5.32 2,131,000 2,131,000 5.33 $1,378,000 the first year and 5.34 $1,378,000 the second year are for 5.35 public television. 5.36 $423,000 the first year and $423,000 5.37 the second year are for grants and 5.38 contracts with the senate and house of 5.39 representatives for public information 5.40 television, Internet, Intranet, and 5.41 other transmission of legislative 5.42 activities. At least one-half must go 5.43 for programming to be broadcast and 5.44 transmitted to rural Minnesota. 5.45 $17,000 the first year and $17,000 the 5.46 second year are for grants to the Twin 5.47 Cities regional cable channel. 5.48 $313,000 the first year and $313,000 5.49 the second year are for grants to 5.50 public educational radio stations 5.51 affiliated with the Association of 5.52 Minnesota Public Educational Radio 5.53 Stations. 5.54 Sec. 12. FINANCE 5.55 Subdivision 1. Total 5.56 Appropriation 15,216,000 15,216,000 6.1 The amounts that may be spent from this 6.2 appropriation for each program are 6.3 specified in the following subdivisions. 6.4 Subd. 2. State Financial Management 6.5 8,711,000 8,711,000 6.6 Subd. 3. Information and 6.7 Management Services 6.8 6,505,000 6,505,000 6.9 Sec. 13. EMPLOYEE RELATIONS 6.10 Subdivision 1. Total 6.11 Appropriation 6,118,000 6,118,000 6.12 The amounts that may be spent from this 6.13 appropriation for each program are 6.14 specified in the following subdivisions. 6.15 Subd. 2. Employee Insurance 6.16 63,000 63,000 6.17 Subd. 3. Human Resources Management 6.18 6,055,000 6,055,000 6.19 Sec. 14. REVENUE 6.20 Subdivision 1. Total 6.21 Appropriation 90,942,000 92,658,000 6.22 Summary by Fund 6.23 General 86,816,000 88,616,000 6.24 Health Care Access 1,654,000 1,654,000 6.25 Highway User 6.26 Tax Distribution 2,097,000 2,097,000 6.27 Environmental 187,000 103,000 6.28 Solid Waste 188,000 188,000 6.29 The amounts that may be spent from this 6.30 appropriation for each program are 6.31 specified in the following subdivisions. 6.32 Subd. 2. Tax System Management 6.33 77,038,000 78,254,000 6.34 Summary by Fund 6.35 General 72,912,000 74,212,000 6.36 Health Care Access 1,654,000 1,654,000 6.37 Highway User 6.38 Tax Distribution 2,097,000 2,097,000 6.39 Environmental 187,000 103,000 6.40 Solid Waste 188,000 188,000 6.41 $938,000 the first year and $2,238,000 7.1 the second year are for additional 7.2 activities to identify and collect tax 7.3 liabilities from individuals and 7.4 businesses that currently do not pay 7.5 all taxes owed. This initiative is 7.6 expected to result in new general fund 7.7 revenues of $32,400,000 for the 7.8 biennium ending June 30, 2005. 7.9 The department must report to the 7.10 chairs of the house ways and means and 7.11 senate finance committees by March 1, 7.12 2004, and January 15, 2005, on the 7.13 following performance indicators: 7.14 (1) the number of corporations 7.15 noncompliant with the corporate tax 7.16 system each year and the percentage and 7.17 dollar amounts of valid tax liabilities 7.18 collected; 7.19 (2) the number of businesses 7.20 noncompliant with the sales and use tax 7.21 system and the percentage and dollar 7.22 amounts of the valid tax liabilities 7.23 collected; and 7.24 (3) the number of individual 7.25 noncompliant cases resolved and the 7.26 percentage and dollar amounts of valid 7.27 tax liabilities collected. 7.28 The reports must also identify base 7.29 level expenditures and staff positions 7.30 related to compliance and audit 7.31 activities, including baseline 7.32 information as of January 1, 2002. The 7.33 information must be provided at the 7.34 budget activity level. 7.35 Subd. 3. Accounts Receivable 7.36 Management 7.37 13,904,000 14,404,000 7.38 $862,000 the first year and $1,362,000 7.39 the second year are for additional 7.40 activities to identify and collect tax 7.41 liabilities from individuals and 7.42 businesses that currently do not pay 7.43 all taxes owed. 7.44 Sec. 15. MILITARY AFFAIRS 7.45 Subdivision 1. Total 7.46 Appropriation 12,279,000 12,279,000 7.47 The amounts that may be spent from this 7.48 appropriation for each program are 7.49 specified in the following subdivisions. 7.50 Subd. 2. Maintenance of Training Facilities 7.51 5,590,000 5,590,000 7.52 Subd. 3. General Support 7.53 1,757,000 1,757,000 7.54 Subd. 4. Enlistment Incentives 8.1 4,857,000 4,857,000 8.2 If appropriations for either year of 8.3 the biennium are insufficient, the 8.4 appropriation from the other year is 8.5 available. The appropriations for 8.6 enlistment incentives are available 8.7 until expended. 8.8 Subd. 5. Emergency Services 8.9 75,000 75,000 8.10 These appropriations are for expenses 8.11 of military forces ordered to active 8.12 duty under Minnesota Statutes, chapter 8.13 192. If the appropriation for either 8.14 year is insufficient, the appropriation 8.15 for the other year is available for it. 8.16 Sec. 16. VETERANS AFFAIRS 3,988,000 3,988,000 8.17 Sec. 17. VETERANS OF FOREIGN 8.18 WARS 55,000 55,000 8.19 For carrying out the provisions of Laws 8.20 1945, chapter 455. 8.21 Sec. 18. MILITARY ORDER OF 8.22 THE PURPLE HEART 20,000 20,000 8.23 Sec. 19. DISABLED AMERICAN 8.24 VETERANS 13,000 13,000 8.25 For carrying out the provisions of Laws 8.26 1941, chapter 425. 8.27 Sec. 20. GAMBLING CONTROL 2,728,000 2,526,000 8.28 Summary by Fund 8.29 General 202,000 -0- 8.30 Special Revenue 2,526,000 2,526,000 8.31 The general fund appropriation in 8.32 fiscal year 2004 is intended to assist 8.33 with the transition to fee-based 8.34 funding. The commissioner of finance 8.35 must approve the use of this onetime 8.36 appropriation and may require that it 8.37 be reimbursed to the general fund if 8.38 sufficient resources are available in 8.39 the special revenue fund. 8.40 The special revenue fund appropriation 8.41 is made from the lawful gambling 8.42 regulation account. 8.43 Sec. 21. RACING COMMISSION 525,000 421,000 8.44 Summary by Fund 8.45 General 104,000 -0- 8.46 Special Revenue 421,000 421,000 8.47 The general fund appropriation in 8.48 fiscal year 2004 is intended to assist 8.49 with the transition to fee-based 8.50 funding. The commissioner of finance 9.1 must approve the use of this onetime 9.2 appropriation and may require that it 9.3 be reimbursed to the general fund if 9.4 sufficient resources are available in 9.5 the special revenue fund. 9.6 The special revenue fund appropriation 9.7 is made from the racing and card 9.8 playing regulation account. 9.9 Sec. 22. TORT CLAIMS 161,000 161,000 9.10 To be spent by the commissioner of 9.11 finance. 9.12 If the appropriation for either year is 9.13 insufficient, the appropriation for the 9.14 other year is available for it. 9.15 Sec. 23. MINNESOTA STATE 9.16 RETIREMENT SYSTEM 2,518,000 2,727,000 9.17 The amounts estimated to be needed for 9.18 each program are as follows: 9.19 (a) Legislators 9.20 2,150,000 2,300,000 9.21 (b) Constitutional Officers 9.22 368,000 427,000 9.23 Sec. 24. MINNEAPOLIS EMPLOYEES 9.24 RETIREMENT FUND 6,632,000 6,632,000 9.25 Sec. 25. AMATEUR SPORTS 9.26 COMMISSION 525,000 525,000 9.27 The appropriations in this section may 9.28 only be spent up to the amount of 9.29 offsetting fee revenue generated by the 9.30 commission under Minnesota Statutes, 9.31 section 240A.03. 9.32 Sec. 26. GENERAL CONTINGENT 9.33 ACCOUNTS 5,500,000 500,000 9.34 Summary by Fund 9.35 General 5,000,000 -0- 9.36 State Government 9.37 Special Revenue 400,000 400,000 9.38 Workers' 9.39 Compensation 100,000 100,000 9.40 The appropriations in this section may 9.41 only be spent with the approval of the 9.42 governor in accordance with the rules 9.43 of the legislative advisory commission 9.44 pursuant to Minnesota Statutes, section 9.45 3.30. 9.46 If an appropriation in this section for 9.47 either year is insufficient, the 9.48 appropriation for the other year is 9.49 available for it. 9.50 Sec. 27. [GOVERNMENT EFFICIENCIES.] 10.1 Subdivision 1. [TELECOMMUNICATION DEVICES.] The 10.2 commissioner of administration, in consultation with heads of 10.3 other executive agencies and with the chancellor of the 10.4 Minnesota state colleges and universities, must issue policies 10.5 to reduce telecommunication device usage and expenditures by 10.6 executive agencies and by the Minnesota state colleges and 10.7 universities. 10.8 Subd. 2. [VEHICLES.] (a) The commissioner of 10.9 administration, in consultation with heads of other executive 10.10 agencies and with the chancellor of the Minnesota state colleges 10.11 and universities, must issue policies to reduce ownership and 10.12 use of passenger vehicles and light duty trucks by executive 10.13 agencies and by the Minnesota state colleges and universities. 10.14 (b) The commissioner may sell vehicles owned by the state 10.15 motor pool and may order the sale of passenger vehicles and 10.16 light duty trucks owned by other executive agencies. The net 10.17 proceeds of these sales must be deposited in the general fund, 10.18 unless provided otherwise by the commissioner of finance. 10.19 Subd. 3. [TRANSFERS.] The commissioner of finance may 10.20 authorize the transfer to and deposit in the general fund of 10.21 money saved under subdivisions 1 and 2 from funds other than the 10.22 general fund. 10.23 Subd. 4. [SAVINGS.] (a) It is anticipated that the 10.24 efficiencies and deposits under subdivisions 1 to 3 will result 10.25 in general fund savings or revenues of at least $10,000,000 10.26 during the biennium ending June 30, 2005. General fund savings 10.27 and revenues that are achieved through actions taken under 10.28 section 28 may be applied to the savings requirements estimated 10.29 to be achieved under this section. The commissioner of finance, 10.30 in consultation with the commissioner of administration, must 10.31 reduce general fund appropriations to executive agencies and to 10.32 the Minnesota state colleges and universities by the amount of 10.33 savings estimated to be achieved under this section. 10.34 (b) If the commissioner of finance, in consultation with 10.35 the commissioner of administration, estimates that the 10.36 efficiencies and deposits achieved under this section will 11.1 result in general fund savings and revenues totaling less than 11.2 $10,000,000 during the biennium ending June 30, 2005, the 11.3 commissioner of finance must report to the legislature by 11.4 January 15, 2004, with proposed allocations of the amount of the 11.5 difference as reductions to general fund operating budgets of 11.6 executive agencies and the Minnesota state colleges and 11.7 universities for fiscal year 2005. The commissioner must 11.8 implement the proposed fiscal year 2005 executive agency 11.9 operating budget reductions unless the 2004 legislature enacts a 11.10 law providing otherwise. 11.11 Sec. 28. [PURCHASING SAVINGS.] 11.12 Subdivision 1. [POLICIES AND PROCEDURES.] The commissioner 11.13 of administration, in consultation with heads of other executive 11.14 agencies and with the chancellor of the Minnesota state colleges 11.15 and universities, must implement policies and procedures to 11.16 reduce expenditures on purchases of goods and services by 11.17 executive agencies and by the Minnesota state colleges and 11.18 universities. These policies and procedures may include 11.19 increased use of reverse auctions and other electronic 11.20 purchasing initiatives and use of authority under Minnesota 11.21 Statutes, section 16E.09, to pay initial costs associated with 11.22 certain initiatives, and may include reductions in specified 11.23 categories of purchases. 11.24 Subd. 2. [TRANSFERS.] The commissioner of finance may 11.25 authorize the transfer to and deposit in the general fund of 11.26 money saved under subdivision 1 from funds other than the 11.27 general fund. 11.28 Subd. 3. [SAVINGS.] (a) It is anticipated that actions 11.29 taken under subdivisions 1 and 2 will result in general fund 11.30 savings or revenues of at least $4,000,000 during the biennium 11.31 ending June 30, 2005. General fund savings and revenues that 11.32 are achieved through actions taken under section 27 may be 11.33 applied to the savings requirements estimated to be achieved 11.34 under this section. The commissioner of finance, in 11.35 consultation with the commissioner of administration, must 11.36 reduce general fund appropriations to executive agencies and to 12.1 the Minnesota state colleges and universities by the amount of 12.2 savings estimated to be achieved under this section. 12.3 (b) If the commissioner of finance, in consultation with 12.4 the commissioner of administration, estimates that the actions 12.5 taken under this section will result in general fund savings and 12.6 revenues totaling less than $4,000,000 during the biennium 12.7 ending June 30, 2005, the commissioner of finance must report to 12.8 the legislature by January 15, 2004, with proposed allocations 12.9 of the amount of the difference as reductions to general fund 12.10 operating budgets of executive agencies and the Minnesota state 12.11 colleges and universities for fiscal year 2005. The 12.12 commissioner must implement the proposed fiscal year 2005 12.13 executive agency operating budget reductions unless the 2004 12.14 legislature enacts a law providing otherwise. 12.15 Sec. 29. [PROCUREMENT EFFICIENCY REVOLVING LOAN FUND.] 12.16 $4,000,000 is appropriated as a loan from the general fund 12.17 in fiscal year 2004 to the commissioner of administration for 12.18 purposes of making investments related to achieving efficiencies 12.19 in purchases of state goods and services. This appropriation is 12.20 available only: (1) to the extent the necessary funds are not 12.21 available from the technology enterprise fund created in 12.22 Minnesota Statutes, section 16E.09; and (2) if the commissioners 12.23 of finance and administration determine that the loan can be 12.24 repaid to the general fund before June 30, 2005, through savings 12.25 in state purchases of goods and services, and the reductions in 12.26 general fund expenditures associated with these savings as 12.27 required by section 28. 12.28 Sec. 30. [INSURANCE.] 12.29 Subdivision 1. [CONTRIBUTION LIMIT.] Total employer 12.30 contributions for medical and dental coverage for eligible state 12.31 employees and dependents and for constitutional officers, 12.32 legislators, and dependents in each year of the biennium ending 12.33 June 30, 2005, shall not exceed the total amount contributed by 12.34 the state for that purpose in the fiscal year ending June 30, 12.35 2003. 12.36 Subd. 2. [SAVINGS.] It is anticipated that entities in the 13.1 executive, legislative, and judicial branches of state 13.2 government, including the Minnesota state colleges and 13.3 universities, will realize general fund operational savings of 13.4 at least $50,500,000 during the biennium ending June 30, 2005, 13.5 as a result of the insurance contribution freeze in subdivision 13.6 1. The commissioner of finance must reduce general fund 13.7 appropriations to executive, legislative, and judicial entities 13.8 and to the Minnesota state colleges and universities for the 13.9 biennium ending June 30, 2005, by a proportional amount of the 13.10 $50,500,000 general fund savings. 13.11 Sec. 31. [SALE OF STATE LAND.] 13.12 Subdivision 1. [STATE LAND SALES.] The commissioner of 13.13 administration shall coordinate with the head of each department 13.14 or agency having control of state-owned land to identify and 13.15 sell at least $3,430,000 of state-owned land. Sales should be 13.16 completed according to law and as provided in this section as 13.17 soon as practicable but no later than June 30, 2005. 13.18 Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, or 13.19 any other law to the contrary, the commissioner may offer land 13.20 for public sale without providing notice of lands or an offer of 13.21 sale of lands to state departments or agencies, the University 13.22 of Minnesota, cities, counties, towns, school districts, or 13.23 other public entities. 13.24 Subd. 2. [ANTICIPATED SAVINGS.] Notwithstanding Minnesota 13.25 Statutes, section 94.16, subdivision 3, the amount of the 13.26 proceeds from the sale of land under this section that exceeds 13.27 the actual expenses of selling the land must be deposited in the 13.28 general fund, except as otherwise provided by the commissioner 13.29 of finance. Notwithstanding Minnesota Statutes, section 94.11, 13.30 the commissioner of finance may establish the timing of payments 13.31 for land purchased under this section. If the total of all 13.32 money deposited into the general fund from the proceeds of the 13.33 sale of land under this section is anticipated to be less than 13.34 $3,430,000, the governor must allocate the amount of the 13.35 difference as reductions to general fund operating expenditures 13.36 for other executive agencies for the biennium ending June 30, 14.1 2005. 14.2 Sec. 32. [SECRETARY OF STATE APPROPRIATION.] 14.3 $369,000 is appropriated in fiscal year 2003 from the 14.4 general fund to the secretary of state for payment of the 14.5 attorney fees awarded by court order in Zachman et al. vs. 14.6 Kiffmeyer et al. This is a onetime appropriation and is not 14.7 added to the secretary of state's base budget. 14.8 Sec. 33. [REAL ESTATE FILING SURCHARGE.] 14.9 All funds collected during the fiscal year ending June 30, 14.10 2004, and funds collected in the fiscal year ending June 30, 14.11 2003, that carry forward into the fiscal year ending June 30, 14.12 2004, pursuant to the additional 50 cent surcharges imposed by 14.13 Laws 2001, First Special Session chapter 10, article 2, section 14.14 77, and Laws 2002, chapter 365, are appropriated to the 14.15 legislative coordinating commission for the real estate task 14.16 force established by Laws 2000, chapter 391, for the purposes 14.17 set forth in Laws 2001, First Special Session chapter 10, 14.18 article 2, sections 98 to 101. $25,000 from those funds are to 14.19 be retained by the legislative coordinating commission for the 14.20 services described in Laws 2001, First Special Session chapter 14.21 10, article 2, section 99. 14.22 Sec. 34. [EFFECTIVE DATE.] 14.23 Sections 26 and 32 are effective the day following final 14.24 enactment. 14.25 ARTICLE 2 14.26 STATE GOVERNMENT OPERATIONS 14.27 Section 1. Minnesota Statutes 2002, section 3.099, 14.28 subdivision 3, is amended to read: 14.29 Subd. 3. [LEADERS.]The senate committee on rules and14.30administration for the senate and the house committee on rules14.31and legislative administration for the house may each designate14.32for their respective body up to three leadership positions to14.33receive up to 140 percent of the compensation of other members.14.34 At the commencement of each biennial legislative session, 14.35 each house of the legislature shall adopt a resolution 14.36 designating its majority and minority leader. 15.1 The majority leader is the person elected by the caucus of 15.2 members in each house which is its largest political 15.3 affiliation. The minority leader is the person elected by the 15.4 caucus which is its second largest political affiliation. 15.5 Sec. 2. Minnesota Statutes 2002, section 3.885, 15.6 subdivision 1, is amended to read: 15.7 Subdivision 1. [MEMBERSHIP.] The legislative commission on 15.8 planning and fiscal policy consists of18nine members of the 15.9 senate appointed by the subcommittee on committees of the 15.10 committee on rules and administration and nine members of the 15.11 house of representatives appointed by thelegislative15.12coordinating commissionspeaker. Vacancies on the commission 15.13 are filled in the same manner as original appointments. The 15.14 commission shall elect a chair and a vice-chair from among its 15.15 members. The chair alternates between a member of the senate 15.16 and a member of the house in January of each odd-numbered year. 15.17 Sec. 3. Minnesota Statutes 2002, section 3.971, 15.18 subdivision 2, is amended to read: 15.19 Subd. 2. [STAFF; COMPENSATION.] The legislative auditor 15.20 shall establish a financial audits division and a program 15.21 evaluation division to fulfill the duties prescribed in this 15.22 section. Each divisionmustmay be supervised by a deputy 15.23 auditor, appointed by the legislative auditor, with the approval 15.24 of the commission, for a term coterminous with the legislative 15.25 auditor's term. The deputy auditors may be removed before the 15.26 expiration of their terms only for cause. The legislative 15.27 auditor and deputy auditors may each appoint a confidential 15.28 secretary to serve at pleasure. The salaries and benefits of 15.29 the legislative auditor, deputy auditors and confidential 15.30 secretaries shall be determined by the compensation plan 15.31 approved by the legislative coordinating commission. The deputy 15.32 auditors may perform and exercise the powers, duties and 15.33 responsibilities imposed by law on the legislative auditor when 15.34 authorized by the legislative auditor. The deputy auditors and 15.35 the confidential secretaries serve in the unclassified civil 15.36 service, but all other employees of the legislative auditor are 16.1 in the classified civil service. While in office, a person 16.2 appointed deputy for the financial audit division must hold an 16.3 active license as a certified public accountant. 16.4 Sec. 4. [3A.115] 16.5 The amount necessary to fund the retirement allowance 16.6 granted under this chapter to a former legislator upon 16.7 retirement is appropriated from the general fund to the director 16.8 to pay pension obligations due to the retiree. Retirement 16.9 allowances payable to retired legislators and their survivors 16.10 under this chapter must be adjusted in the same manner, at the 16.11 same times, and in the same amounts as are benefits payable from 16.12 the Minnesota postretirement investment fund to retirees of a 16.13 participating public pension fund. 16.14 Sec. 5. Minnesota Statutes 2002, section 6.48, is amended 16.15 to read: 16.16 6.48 [EXAMINATION OF COUNTIES; COST, FEES.] 16.17 All the powers and duties conferred and imposed upon the 16.18 state auditor shall be exercised and performed by the state 16.19 auditor in respect to the offices, institutions, public 16.20 property, and improvements of several counties of the state. At 16.21 least once in each year, if funds and personnel permit, the 16.22 state auditorshallmay visit, without previous notice, each 16.23 county and make a thorough examination of all accounts and 16.24 records relating to the receipt and disbursement of the public 16.25 funds and the custody of the public funds and other 16.26 property. If the audit is performed by a private certified 16.27 public accountant, the state auditor may require specific 16.28 additional information from the private certified public 16.29 accountant to resolve the specified issues or questions. The 16.30 state auditor may accept the audit or make additional 16.31 examinations as the state auditor deems to be in the public 16.32 interest. The state auditor shall prescribe and install systems 16.33 of accounts and financial reports that shall be uniform, so far 16.34 as practicable, for the same class of offices. A copy of the 16.35 report of such examination shall be filed and be subject to 16.36 public inspection in the office of the state auditor and another 17.1 copy in the office of the auditor of the county thus examined. 17.2 The state auditor may accept the records and audit, or any part 17.3 thereof, of the department of human services in lieu of 17.4 examination of the county social welfare funds, if such audit 17.5 has been made within any period covered by the state auditor's 17.6 audit of the other records of the county. If any such 17.7 examination shall disclose malfeasance, misfeasance, or 17.8 nonfeasance in any office of such county, such report shall be 17.9 filed with the county attorney of the county, and the county 17.10 attorney shall institute such civil and criminal proceedings as 17.11 the law and the protection of the public interests shall require. 17.12 The county receivingsuchany examination shall pay to the 17.13 state general fund, notwithstanding the provisions of section 17.14 16A.125, the total cost and expenses of such examinations, 17.15 including the salaries paid to the examiners while actually 17.16 engaged in making such examination. The state auditor on 17.17 deeming it advisable may bill counties, having a population of 17.18 200,000 or over, monthly for services rendered and the officials 17.19 responsible for approving and paying claims shall cause said 17.20 bill to be promptly paid. The general fund shall be credited 17.21 with all collections made for any such examinations. 17.22 Sec. 6. Minnesota Statutes 2002, section 6.49, is amended 17.23 to read: 17.24 6.49 [CITIES OF FIRST CLASS.] 17.25 All powers and duties conferred and imposed upon the state 17.26 auditor with respect to state and county officers, institutions, 17.27 property, and improvements are hereby extended to cities of the 17.28 first class. Copies of the written report of the state auditor 17.29 on the financial condition and accounts of such city shall be 17.30 filed in the state auditor's office, with the mayor, city 17.31 council, and city comptroller thereof, and with the city 17.32 commissioners, if such city have such officers. If such report 17.33 disclose malfeasance, misfeasance, or nonfeasance in office, 17.34 copies thereof shall be filed with the city attorney thereof and 17.35 with the county attorney of the county in which such city is 17.36 located, and these officials of the law shall institute such 18.1 proceedings, civil or criminal, as the law and the public 18.2 interest require. 18.3 The state auditormayshall bill said cities monthly for 18.4 services rendered, including any examination, and the officials 18.5 responsible for approving and paying claims shall cause said 18.6 bill to be promptly paid. 18.7 Sec. 7. Minnesota Statutes 2002, section 6.54, is amended 18.8 to read: 18.9 6.54 [EXAMINATION OF COUNTY AND MUNICIPAL RECORDS PURSUANT 18.10 TO PETITION.] 18.11 The registered voters in a county or home rule charter or 18.12 statutory city or the electors at an annual or special town 18.13 meeting of a town may petition the state auditor to examine the 18.14 books, records, accounts, and affairs of the county, home rule 18.15 charter or statutory city, town, or of any organizational unit, 18.16 activity, project, enterprise, or fund thereof; and the scope of 18.17 the examination may be limited by the petition, but the 18.18 examination shall cover, at least, all cash received and 18.19 disbursed and the transactions relating thereto, provided that 18.20 the state auditor shall not examine more than the six latest 18.21 years preceding the circulation of the petition, unless it 18.22 appears to the state auditor during the examination that the 18.23 audit period should be extended to permit a full recovery under 18.24 bonds furnished by public officers or employees, and may if it 18.25 appears to the auditor in the public interest confine the period 18.26 or the scope of audit or both period and scope of audit, to less 18.27 than that requested by the petition. In the case of a county or 18.28 home rule charter or statutory city, the petition shall be 18.29 signed by a number of registered voters at least equal to 20 18.30 percent of those voting in the last presidential election. The 18.31 eligible voters of any school district may petition the state 18.32 auditor, who shall be subject to the same restrictions regarding 18.33 the scope and period of audit, provided that the petition shall 18.34 be signed by at least ten eligible voters for each 50 resident 18.35 pupils in average daily membership during the preceding school 18.36 year as shown on the records in the office of the commissioner 19.1 of children, families, and learning. In the case of school 19.2 districts, the petition shall be signed by at least ten eligible 19.3 voters. At the time it is circulated, every petition shall 19.4 contain a statement that the cost of the audit will be borne by 19.5 the county, city, or school district as provided by law. Thirty 19.6 days before the petition is delivered to the state auditor it 19.7 shall be presented to the appropriate city or school district 19.8 clerk and the county auditor. The county auditor shall 19.9 determine and certify whether the petition is signed by the 19.10 required number of registered voters or eligible voters as the 19.11 case may be. The certificate shall be conclusive evidence 19.12 thereof in any action or proceeding for the recovery of the 19.13 costs, charges, and expenses of any examination made pursuant to 19.14 the petition. 19.15 Sec. 8. Minnesota Statutes 2002, section 6.55, is amended 19.16 to read: 19.17 6.55 [EXAMINATION OF RECORDS PURSUANT TO RESOLUTION OF 19.18 GOVERNING BODY.] 19.19 The governing body of any city, town, county or school 19.20 district, by appropriate resolution may ask the state auditor to 19.21 examine the books, records, accounts and affairs of their 19.22 government, or of any organizational unit, activity, project, 19.23 enterprise, or fund thereof; and the state auditor shall examine 19.24 the same upon receiving, pursuant to said resolution, a written 19.25 request signed by a majority of the members of the governing 19.26 body; and the governing body of any public utility commission, 19.27 or of any public corporation having a body politic and 19.28 corporate, or of any instrumentality joint or several of any 19.29 city, town, county, or school district, may request an audit of 19.30 its books, records, accounts and affairs in the same manner; 19.31 provided that the scope of the examination may be limited by the 19.32 request, but such examination shall cover, at least, all cash 19.33 received and disbursed and the transactions relating thereto. 19.34 Such written request shall be presented to the clerk, or 19.35 recording officer of such city, town, county, school district, 19.36 public utility commission, public corporation, or 20.1 instrumentality, before being presented to the state auditor, 20.2 who shall determine whether the same is signed by a majority of 20.3 the members of such governing body and, if found to be so 20.4 signed, shall certify such fact, and the fact that such 20.5 resolution was passed, which certificate shall be conclusive 20.6 evidence thereof in any action or proceedings for the recovery 20.7 of the costs, charges and expenses of any examination made 20.8 pursuant to such request. Nothing contained in any of the laws 20.9 of the state relating to the state auditor, shall be so 20.10 construed as to prevent any county, city, town, or school 20.11 district from employing a certified public accountant to examine 20.12 its books, records, accounts, and affairs. For the purposes of 20.13 this section, the governing body of a town is the town board. 20.14 Sec. 9. Minnesota Statutes 2002, section 6.64, is amended 20.15 to read: 20.16 6.64 [COOPERATION WITH PUBLIC ACCOUNTANTS; PUBLIC 20.17 ACCOUNTANT DEFINED.] 20.18 There shall be mutual cooperation between the state auditor 20.19 and public accountants in the performance of auditing, 20.20 accounting, and other related services for counties, cities, 20.21 towns, school districts, and other public corporations. For the 20.22 purposes of sections 6.64 to 6.71 the term public accountant 20.23 shall have the meaning ascribed to it in section 412.222. 20.24 Sec. 10. Minnesota Statutes 2002, section 6.65, is amended 20.25 to read: 20.26 6.65 [MINIMUM PROCEDURES FOR AUDITORS, PRESCRIBED.] 20.27 The state auditor shall prescribe minimum procedures and 20.28 the audit scope for auditing the books, records, accounts, and 20.29 affairs of counties and local governments in Minnesota. The 20.30 minimum scope for audits of all local governments must include 20.31 financial and legal compliance audits. Audits of all school 20.32 districts must include a determination of compliance with 20.33 uniform financial accounting and reporting standards. The state 20.34 auditor shall promulgate an audit guide for legal compliance 20.35 audits, in consultation with representatives of the state 20.36 auditor, the attorney general, towns, cities, counties, school 21.1 districts, and private sector public accountants. 21.2 Sec. 11. Minnesota Statutes 2002, section 6.66, is amended 21.3 to read: 21.4 6.66 [CERTAIN PRACTICES OF PUBLIC ACCOUNTANTS AUTHORIZED.] 21.5 Any public accountant may engage in the practice of 21.6 auditing the books, records, accounts, and affairs of counties, 21.7 cities, towns, school districts, and other public corporations 21.8 which are not otherwise required by law to be audited 21.9 exclusively by the state auditor. 21.10 Sec. 12. Minnesota Statutes 2002, section 6.67, is amended 21.11 to read: 21.12 6.67 [PUBLIC ACCOUNTANTS; REPORT OF EVIDENCE POINTING TO 21.13 MISCONDUCT.] 21.14 Whenever a public accountant in the course of auditing the 21.15 books and affairs of a county, city, town, school district, or 21.16 other public corporations, shall discover evidence pointing to 21.17 nonfeasance, misfeasance, or malfeasance, on the part of an 21.18 officer or employee in the conduct of duties and affairs, the 21.19 public accountant shall promptly make a report of such discovery 21.20 to the state auditor and the county attorney of the county in 21.21 which the governmental unit is situated and the public 21.22 accountant shall also furnish a copy of the report of audit upon 21.23 completion to said officers. The county attorney shall act on 21.24 such report in the same manner as required by law for reports 21.25 made to the county attorney by the state auditor. 21.26 Sec. 13. Minnesota Statutes 2002, section 6.68, 21.27 subdivision 1, is amended to read: 21.28 Subdivision 1. [REQUEST TO GOVERNING BODY.] If in an audit 21.29 of a county, city, town, school district, or other public 21.30 corporation, a public accountant has need of the assistance of 21.31 the state auditor, the accountant may obtain such assistance by 21.32 requesting the governing body of the governmental unit being 21.33 examined to request the state auditor to perform such auditing 21.34 or investigative services, or both, as the matter and the public 21.35 interest require. 21.36 Sec. 14. Minnesota Statutes 2002, section 6.70, is amended 22.1 to read: 22.2 6.70 [ACCESS TO REPORTS.] 22.3 The state auditor and the public accountants shall have 22.4 reasonable access to each other's audit reports, working papers, 22.5 and audit programs concerning audits made by each of counties, 22.6 cities, towns, school districts, and other public corporations. 22.7 Sec. 15. Minnesota Statutes 2002, section 6.71, is amended 22.8 to read: 22.9 6.71 [SCOPE OF AUDITOR'S INVESTIGATION.] 22.10 Whenever the governing body of a county, city, town, or 22.11 school district shall have requested a public accountant to make 22.12 an audit of its books and affairs, and such audit is in progress 22.13 or has been completed, andfreeholdersregistered voters or 22.14 electors petition or the governing body requests or both the 22.15 state auditor to make an examination covering the same, or part 22.16 of the same, period, the state auditor may, in the public 22.17 interest, limit the scope of the examination to less than that 22.18 specified in section 6.54, but the scope shall cover, at least, 22.19 an investigation of those complaints which are within the state 22.20 auditor's powers and duties to investigate. 22.21 Sec. 16. Minnesota Statutes 2002, section 6.74, is amended 22.22 to read: 22.23 6.74 [INFORMATION COLLECTED FROM LOCAL GOVERNMENTS.] 22.24 The state auditor, or a designated agent, shall collect 22.25 annually from all city, county, and other local units of 22.26 government, information as to the assessment of property, 22.27 collection of taxes, receipts from licenses and other sources, 22.28 the expenditure of public funds for all purposes, borrowing, 22.29 debts, principal and interest payments on debts, and such other 22.30 information as may be needful. The data shall be supplied 22.31 uponblanksforms prescribed by the state auditor, and all 22.32 public officials so called upon shall fill out properly and 22.33 return promptly allblanksforms so transmitted. The state 22.34 auditor or assistants, may examine local records in order to 22.35 complete or verify the information. 22.36 Sec. 17. [6.78] [BEST PRACTICES REVIEWS.] 23.1 The state auditor shall conduct best practices reviews that 23.2 examine the procedures and practices used to deliver local 23.3 government services, determine the methods of local government 23.4 service delivery, identify variations in cost and effectiveness, 23.5 and identify practices to save money or provide more effective 23.6 service delivery. The state auditor shall recommend to local 23.7 governments service delivery methods and practices to improve 23.8 the cost-effectiveness of services. The state auditor shall 23.9 determine the local government services to be reviewed in 23.10 consultation with representatives of the Association of 23.11 Minnesota Counties, the League of Minnesota Cities, the 23.12 Association of Metropolitan Municipalities, the Minnesota 23.13 Association of Townships, and the Minnesota Association of 23.14 School Administrators. 23.15 [EFFECTIVE DATE.] This section is effective July 1, 2004. 23.16 Sec. 18. [6.79] [EQUITABLE COMPENSATION COMPLIANCE.] 23.17 The state auditor may adopt rules under the Administrative 23.18 Procedure Act to ensure compliance with sections 471.991 to 23.19 471.999. 23.20 Sec. 19. Minnesota Statutes 2002, section 8.06, is amended 23.21 to read: 23.22 8.06 [ATTORNEY FOR STATE OFFICERS, BOARDS, OR COMMISSIONS; 23.23 EMPLOY COUNSEL.] 23.24 The attorney general shall act as the attorney for all 23.25 state officers and all boards or commissions created by law in 23.26 all matters pertaining to their official duties. When requested 23.27 by the attorney general, it shall be the duty of any county 23.28 attorney of the state to appear within the county and act as 23.29 attorney for any such board, commission, or officer in any court 23.30 of such county. The attorney general may, upon request in 23.31 writing, employ, and fix the compensation of, a special attorney 23.32 for any such board, commission, or officer when, in the attorney 23.33 general's judgment, the public welfare will be promoted 23.34 thereby. Such special attorney's fees or salary shall be paid 23.35 from the appropriation made for such board, commission, or 23.36 officer. Except as herein provided, no board, commission, or 24.1 officer shall hereafter employ any attorney at the expense of 24.2 the state. 24.3 Whenever the attorney general, the governor,andor the 24.4 chief justice of the supreme court shall certify, in writing, 24.5 filed in the office of the secretary of state, that it is 24.6 necessary, in the proper conduct of the legal business of the 24.7 state, either civil or criminal, that the state employ 24.8 additional counsel, the attorney general, the governor, or the 24.9 chief justice of the supreme court shall thereuponbe authorized24.10to employauthorize the employment of such counsel and, with the24.11governor and the chief justice,fix the additional counsel's 24.12 compensation. Except as herein stated, no additional counsel 24.13 shall be employed and the legal business of the state shall be 24.14 performed exclusively by the attorney general and the attorney 24.15 general's assistants. 24.16 Sec. 20. Minnesota Statutes 2002, section 10A.02, is 24.17 amended by adding a subdivision to read: 24.18 Subd. 15. [DISPOSITION OF FEES.] The board must deposit 24.19 all fees collected under this chapter into the general fund in 24.20 the state treasury. 24.21 Sec. 21. Minnesota Statutes 2002, section 10A.02, is 24.22 amended by adding a subdivision to read: 24.23 Subd. 16. [PROPOSED FEE CHANGES.] As part of its 24.24 submission of its biennial budget request, the board must 24.25 propose changes to the fees required in this chapter that will 24.26 be sufficient to recover the direct appropriation to the board. 24.27 The board must include in its recovery calculation seven percent 24.28 of the amounts designated by individuals for the state elections 24.29 campaign fund under section 10A.31, subdivision 4. 24.30 Sec. 22. Minnesota Statutes 2002, section 10A.04, 24.31 subdivision 2, is amended to read: 24.32 Subd. 2. [TIME OF REPORTS.] Each report must cover the 24.33 time from the last day of the period covered by the last report 24.34 to 15 days before the current filing date. The reports must be 24.35 filed with the board by the following dates: 24.36 (1) January 15; and 25.1 (2)April 15; and25.2(3) July 15May 30. 25.3 Sec. 23. Minnesota Statutes 2002, section 10A.04, 25.4 subdivision 4, is amended to read: 25.5 Subd. 4. [CONTENT.] (a) A report under this section must 25.6 include information the board requires from the registration 25.7 form and the information required by this subdivision for the 25.8 reporting period. 25.9 (b) A lobbyist must report the lobbyist's total 25.10 disbursements on lobbying, separately listing lobbying to 25.11 influence legislative action, lobbying to influence 25.12 administrative action, and lobbying to influence the official 25.13 actions of a metropolitan governmental unit, and a breakdown of 25.14 disbursements for each of those kinds of lobbying into 25.15 categories specified by the board, including but not limited to 25.16 the cost of publication and distribution of each publication 25.17 used in lobbying; other printing; media, including the cost of 25.18 production; postage; travel; fees, including allowances; 25.19 entertainment; telephone and telegraph; and other expenses. 25.20 (c) A lobbyist must report the amount and nature of each 25.21 gift, item, or benefit, excluding contributions to a candidate, 25.22 equal in value to $5 or more, given or paid to any official, as 25.23 defined in section 10A.071, subdivision 1, by the lobbyist or an 25.24 employer or employee of the lobbyist. The list must include the 25.25 name and address of each official to whom the gift, item, or 25.26 benefit was given or paid and the date it was given or paid. 25.27 (d) A lobbyist must report each original source of money in 25.28 excess of $500 in any year used for the purpose of lobbying to 25.29 influence legislative action, administrative action, or the 25.30 official action of a metropolitan governmental unit. The list 25.31 must include the name, address, and employer, or, if 25.32 self-employed, the occupation and principal place of business, 25.33 of each payer of money in excess of $500. 25.34 (e) On the report dueApril 15May 30, the lobbyist must 25.35 provide a general description of the subjects lobbied in the 25.36 previous 12 months. 26.1 Sec. 24. Minnesota Statutes 2002, section 10A.04, is 26.2 amended by adding a subdivision to read: 26.3 Subd. 9. [ELECTRONIC REPORTS.] Effective January 1, 2005, 26.4 a lobbyist may file a report required under this section 26.5 electronically with the board. 26.6 Sec. 25. [10A.045] [LOBBYIST AND PRINCIPAL REPORT FEES.] 26.7 Subdivision 1. [PURPOSE.] The purpose of this section is 26.8 to pay for the cost of administering sections 10A.03 to 10A.06 26.9 with fees collected from lobbyists to be used only for that 26.10 purpose. 26.11 Subd. 2. [FEE; USE; PROHIBITION.] Each lobbyist and 26.12 principal must pay a biennial fee of $225 by January 15 of every 26.13 odd-numbered year. Authorized unpaid volunteers of an 26.14 organization recognized as a 501(c)(3) charity by the Internal 26.15 Revenue Service are not required to pay this fee. The fees 26.16 collected under this section must not be more than the amount 26.17 necessary to administer the lobbyist registration and regulation 26.18 provisions of this chapter. A person who has not paid the fee 26.19 required by this section is prohibited from acting as a lobbyist. 26.20 Sec. 26. Minnesota Statutes 2002, section 10A.09, 26.21 subdivision 6, is amended to read: 26.22 Subd. 6. [SUPPLEMENTARY STATEMENT.] Each individual who is 26.23 required to file a statement of economic interest must file a 26.24 supplementary statement on April 15 of each year that the 26.25 individual remains in officeif information on the most recently26.26filed statement has changed. The supplementary statement, if26.27required,must include the amount of each honorarium in excess 26.28 of $50 received since the previous statement and the name and 26.29 address of the source of the honorarium. The board must 26.30 maintain a statement of economic interest submitted by an 26.31 officeholder in the same file with the statement submitted as a 26.32 candidate. 26.33 Sec. 27. Minnesota Statutes 2002, section 10A.09, is 26.34 amended by adding a subdivision to read: 26.35 Subd. 9. [FILING FEE.] A public official required to file 26.36 a statement of economic interest or an annual supplementary 27.1 statement with the board under this section must accompany the 27.2 statement with a $60 filing fee. A public official listed in 27.3 section 10A.01, subdivision 35, clause (2), is not required to 27.4 pay this fee. 27.5 Sec. 28. [10A.145] [REGISTRATION FEES.] 27.6 Subdivision 1. [REQUIREMENT.] (a) Each principal campaign 27.7 committee must pay to the board a registration fee when it 27.8 originally registers with the board and each time a nonjudicial 27.9 candidate for whom a committee is registered files for office. 27.10 The office with which the candidate files must collect the fee 27.11 when the candidate files and must deposit it into the general 27.12 fund in the state treasury. 27.13 (b) Each political committee, political fund, and party 27.14 unit must pay a registration fee to the board when it originally 27.15 registers with the board and by January 31 of each odd-numbered 27.16 year thereafter. 27.17 Subd. 2. [AMOUNT OF FEE.] The registration fees are as 27.18 follows: 27.19 (1) principal campaign committee for candidate for 27.20 nonjudicial statewide office, $1,000; 27.21 (2) principal campaign committee for candidate for state 27.22 senate, $500; 27.23 (3) principal campaign committee for candidate for state 27.24 house of representatives, $350; 27.25 (4) principal campaign committee for judicial candidate, 27.26 $250; 27.27 (5) political committee or political fund, two percent of 27.28 total expenditures, disbursements, and contributions made during 27.29 the prior two years; and 27.30 (6) party unit, 1-1/2 percent of total expenditures, 27.31 disbursements, and contributions made during the prior two years. 27.32 Subd. 3. [PROHIBITION.] A political committee, political 27.33 fund, or party unit may not accept a contribution or make an 27.34 expenditure, disbursement, or contribution unless the fee 27.35 required by this section has been paid. 27.36 Subd. 4. [TRANSITION.] Lobbyists, principals, principal 28.1 campaign committees, political committees, political funds, and 28.2 party units that are registered on the effective date of this 28.3 section must pay the fee for initial registration required by 28.4 this section or section 10A.045 within 60 days after the 28.5 effective date of this section. This subdivision expires August 28.6 1, 2004. 28.7 Sec. 29. Minnesota Statutes 2002, section 10A.31, 28.8 subdivision 1, is amended to read: 28.9 Subdivision 1. [DESIGNATION.] An individual resident of 28.10 this state who files an income tax return or a renter and 28.11 homeowner property tax refund return with the commissioner of 28.12 revenue may designate on their original return that$5up to $25 28.13 be paid from the general fund of the state into the state 28.14 elections campaign fund. If a husband and wife file a joint 28.15 return, each spouse may designate that$5up to $25 be paid. 28.16 The total designated amount is added to the amount due from the 28.17 filer or subtracted from the refund due the filer. No 28.18 individual is allowed to designate$5$25 more than once in any 28.19 year. The taxpayer may designate that the amount be paid into 28.20 the account of a political party or into the general account. 28.21 Sec. 30. Minnesota Statutes 2002, section 10A.31, 28.22 subdivision 3, is amended to read: 28.23 Subd. 3. [FORM.] The commissioner of revenue must provide 28.24 on the first page of the income tax form and the renter and 28.25 homeowner property tax refund return a space for the individual 28.26 to indicate a wish to pay$5up to an additional $25 ($10up to 28.27 an additional $50 if filing a joint return)from the general28.28fund of the stateto finance election campaigns. The form must 28.29 also contain language prepared by the commissioner that permits 28.30 the individual to direct the state to pay the$5additional up 28.31 to $25 (or$10additional up to $50 if filing a joint return) 28.32 to: (1) one of the major political parties; (2) any minor 28.33 political party that qualifies under subdivision 3a; or (3) all 28.34 qualifying candidates as provided by subdivision 7. The renter 28.35 and homeowner property tax refund return must include 28.36 instructions that the individual filing the return may 29.1 designate$5up to $25 on the return only if the individual has 29.2 not designated$5up to $25 on the income tax return. 29.3 Sec. 31. Minnesota Statutes 2002, section 10A.31, 29.4 subdivision 4, is amended to read: 29.5 Subd. 4. [APPROPRIATION.](a)The amounts designated by 29.6 individuals for the state elections campaign fund, lessthree29.7 ten percent, are appropriated from the general fund, must be 29.8 transferred and credited to the appropriate account in the state 29.9 elections campaign fund, and are annually appropriated for 29.10 distribution as set forth in subdivisions 5, 5a, 6, and 7. The 29.11 remainingthreeten percent must be kept in the general fund for 29.12 administrative costs. 29.13(b) In addition to the amounts in paragraph (a), $1,500,00029.14for each general election is appropriated from the general fund29.15for transfer to the general account of the state elections29.16campaign fund.29.17 Sec. 32. Minnesota Statutes 2002, section 14.48, is 29.18 amended by adding a subdivision to read: 29.19 Subd. 4. [MANDATORY RETIREMENT.] An administrative law 29.20 judge and compensation judge must retire upon attaining age 70. 29.21 The chief administrative law judge may appoint a retired 29.22 administrative law judge or compensation judge to hear any 29.23 proceeding that is properly assignable to an administrative law 29.24 judge or compensation judge. When a retired administrative law 29.25 judge or compensation judge undertakes this service, the retired 29.26 judge shall receive pay and expenses in the amount payable to 29.27 temporary administrative law judges or compensation judges 29.28 serving under section 14.49. 29.29 [EFFECTIVE DATE.] This section is effective June 30, 2003. 29.30 An administrative law judge or compensation judge who has 29.31 attained the age of 70 on or before that date must retire by 29.32 June 30, 2003. 29.33 Sec. 33. Minnesota Statutes 2002, section 15.50, 29.34 subdivision 1, is amended to read: 29.35 Subdivision 1. [PURPOSE, MEMBERS, OFFICERS.] (a) The 29.36 legislature finds that the purposes of the board are to (1) 30.1 preserve and enhance the dignity, beauty and architectural 30.2 integrity of the capitol, the buildings immediately adjacent to 30.3 it, the capitol grounds, and the capitol area; (2) protect, 30.4 enhance, and increase the open spaces within the capitol area 30.5 when deemed necessary and desirable for the improvement of the 30.6 public enjoyment thereof; (3) develop proper approaches to the 30.7 capitol area for pedestrian movement, the highway system, and 30.8 mass transit system so that the area achieves its maximum 30.9 importance and accessibility; and (4) establish a flexible 30.10 framework for growth of the capitol buildings which will be in 30.11 keeping with the spirit of the original design. 30.12 (b) The capitol area architectural and planning board, 30.13 herein referred to as the board, is established within the 30.14 department of administration. The board consists of ten 30.15 members. The lieutenant governor shall be a member of the 30.16 board. Four members shall be appointed by the governor; three 30.17 members, one of whom shall be a resident of the district 30.18 planning council area containing the capitol area, shall be 30.19 appointed by the mayor of the city of Saint Paul, with the 30.20 advice and consent of the city council. The speaker of the 30.21 house shall appoint a member of the house of representatives and 30.22 the president of the senate shall appoint one senator to be 30.23 members of the board. Each person appointed to the board shall 30.24 qualify by taking the oath of office. 30.25 (c) The lieutenant governor is the chair of the board. The 30.26 attorney general is the legal advisor to the board. The board 30.27 may elect a vice-chair who may preside at meetings in the 30.28 absence of the lieutenant governor and such other officers as it 30.29 may deem necessary to carry out its duties. 30.30 (d) The commissioner of administration, after consulting 30.31 with the board, shallselectappoint an executive secretary to 30.32 serve the board.ItThe commissioner may employ such other 30.33 officers and employees asitthe commissioner may deem 30.34 necessary, all of whom shall be in the classified service of the 30.35 state civil service. The board may contract for professional 30.36 and other similar service on such terms as it may deem 31.1 desirable. The commissioner must provide administrative support 31.2 to the board. 31.3 Sec. 34. [15A.23] [POLITICAL SUBDIVISION COMPENSATION 31.4 LIMIT.] 31.5 (a) The salary and the value of all other forms of 31.6 compensation of a person employed by a political subdivision of 31.7 this state excluding a school district, or employed under 31.8 section 422A.03, may not exceed 95 percent of the salary of the 31.9 governor as set under section 15A.082, except as provided in 31.10 this section. For purposes of this subdivision, "political 31.11 subdivision of this state" includes a statutory or home rule 31.12 charter city, county, town, metropolitan or regional agency, or 31.13 other political subdivision, but does not include a hospital, 31.14 clinic, or health maintenance organization owned by such a 31.15 governmental unit. 31.16 (b) Deferred compensation and payroll allocations to 31.17 purchase an individual annuity contract for an employee are 31.18 included in determining the employee's salary. Other forms of 31.19 compensation which shall be included to determine an employee's 31.20 total compensation are all other direct and indirect items of 31.21 compensation which are not specifically excluded by this 31.22 section. Other forms of compensation which shall not be 31.23 included in a determination of an employee's total compensation 31.24 for the purposes of this section are: 31.25 (1) employee benefits that are also provided for the 31.26 majority of all other full-time employees of the political 31.27 subdivision, vacation and sick leave allowances, health and 31.28 dental insurance, disability insurance, term life insurance, and 31.29 pension benefits or like benefits the cost of which is borne by 31.30 the employee or which is not subject to tax as income under the 31.31 Internal Revenue Code of 1986; 31.32 (2) dues paid to organizations that are of a civic, 31.33 professional, educational, or governmental nature; and 31.34 (3) reimbursement for actual expenses incurred by the 31.35 employee which the governing body determines to be directly 31.36 related to the performance of job responsibilities, including 32.1 any relocation expenses paid during the initial year of 32.2 employment. 32.3 The value of other forms of compensation shall be the 32.4 annual cost to the political subdivision for the provision of 32.5 the compensation. 32.6 (c) The salary of a medical doctor or doctor of osteopathy 32.7 occupying a position that the governing body of the political 32.8 subdivision has determined requires an M.D. or D.O. degree is 32.9 excluded from the limitation in this section. 32.10 (d) The state auditor may increase the limitation in this 32.11 section for a position that the state auditor has determined 32.12 requires special expertise necessitating a higher salary to 32.13 attract or retain a qualified person. The state auditor shall 32.14 review each proposed increase giving due consideration to salary 32.15 rates paid to other persons with similar responsibilities in the 32.16 state and nation. 32.17 Before granting an increase in the limitation, the state 32.18 auditor must submit the proposed increase to the legislative 32.19 coordinating commission for its review and recommendation. The 32.20 recommendation is advisory only. If the commission fails to 32.21 make a recommendation with 30 days from its receipt of the 32.22 proposal, it is deemed to have made no recommendation. The 32.23 state auditor may charge and collect, pursuant to section 6.56, 32.24 a fee from political subdivisions proposing a limitation 32.25 increase to cover the cost incurred by the state auditor under 32.26 this subdivision. 32.27 Sec. 35. Minnesota Statutes 2002, section 16A.11, 32.28 subdivision 3, is amended to read: 32.29 Subd. 3. [PART TWO: DETAILED BUDGET.] (a) Part two of the 32.30 budget, the detailed budget estimates both of expenditures and 32.31 revenues, must contain any statements on the financial plan 32.32 which the governor believes desirable or which may be required 32.33 by the legislature. The detailed estimates shall include the 32.34 governor's budget arranged in tabular form. 32.35 (b) The detailed estimates must include a separate line 32.36 listingthe total number of professional or technical service33.1contracts andthe total cost ofthoseprofessional and technical 33.2 service contracts for the prior biennium and the 33.3 projectednumber of professional or technical service contracts33.4and the projectedcosts of those contracts for the current and 33.5 upcoming biennium. They must also include a summary of the 33.6 personnel employed by the agency, reflected as full-time 33.7 equivalent positions, and the number of professional or33.8technical service consultants for the current biennium. 33.9 (c) The detailed estimates for internal service funds must 33.10 include the number of full-time equivalents by program; detail 33.11 on any loans from the general fund, including dollar amounts by 33.12 program; proposed investments in technology or equipment of 33.13 $100,000 or more; an explanation of any operating losses or 33.14 increases in retained earnings; and a history of the rates that 33.15 have been charged, with an explanation of any rate changes and 33.16 the impact of the rate changes on affected agencies. 33.17 [EFFECTIVE DATE.] This section is effective the day 33.18 following final enactment. 33.19 Sec. 36. Minnesota Statutes 2002, section 16A.17, is 33.20 amended by adding a subdivision to read: 33.21 Subd. 10. [DIRECT DEPOSIT.] Notwithstanding section 33.22 177.23, the commissioner may require direct deposit for all 33.23 state employees that are being paid by the state payroll system. 33.24 Sec. 37. Minnesota Statutes 2002, section 16A.40, is 33.25 amended to read: 33.26 16A.40 [WARRANTS AND ELECTRONIC FUND TRANSFERS.] 33.27 Money must not be paid out of the state treasury except 33.28 upon the warrant of the commissioner or an electronic fund 33.29 transfer approved by the commissioner. Warrants must be drawn 33.30 on printed blanks that are in numerical order. The commissioner 33.31 shall enter, in numerical order in a warrant register, the 33.32 number, amount, date, and payee for every warrant issued. 33.33 The commissioner may require payeesreceiving more than ten33.34payments or $10,000 per year mustto supplythe commissioner33.35withtheir bank routing information to enable the payments to be 33.36 made through an electronic fund transfer. 34.1 Sec. 38. Minnesota Statutes 2002, section 16A.501, is 34.2 amended to read: 34.3 16A.501 [REPORT ON EXPENDITURE OF BOND PROCEEDS.] 34.4 The commissioner of finance must report annually to the 34.5 legislature on the degree to which entities receiving 34.6 appropriations for capital projects in previous omnibus capital 34.7 improvement acts have encumbered or expended that money. The 34.8 report must be submitted to the chairs of the house of 34.9 representatives ways and means committee and the senate finance 34.10 committee byFebruaryJanuary 1 of each year. 34.11 Sec. 39. Minnesota Statutes 2002, section 16A.642, 34.12 subdivision 1, is amended to read: 34.13 Subdivision 1. [REPORTS.] (a) The commissioner of finance 34.14 shall report to the chairs of the senate committee on finance 34.15 and the house of representatives committees on ways and means 34.16 and on capital investment byFebruaryJanuary 1 of each 34.17 odd-numbered year on the following: 34.18 (1) all laws authorizing the issuance of state bonds or 34.19 appropriating general fund money for state or local government 34.20 capital investment projects enacted more than four years before 34.21FebruaryJanuary 1 of that odd-numbered year; the projects 34.22 authorized to be acquired and constructed for which less than 34.23 100 percent of the authorized total cost has been expended, 34.24 encumbered, or otherwise obligated; the cost of contracts to be 34.25 let in accordance with existing plans and specifications shall 34.26 be considered expended for this report; and the amount of 34.27 general fund money appropriated but not spent or otherwise 34.28 obligated, and the amount of bonds not issued and bond proceeds 34.29 held but not previously expended, encumbered, or otherwise 34.30 obligated for these projects; and 34.31 (2) all laws authorizing the issuance of state bonds or 34.32 appropriating general fund money for state or local government 34.33 capital programs or projects other than those described in 34.34 clause (1), enacted more than four years beforeFebruaryJanuary 34.35 1 of that odd-numbered year; and the amount of general fund 34.36 money appropriated but not spent or otherwise obligated, and the 35.1 amount of bonds not issued and bond proceeds held but not 35.2 previously expended, encumbered, or otherwise obligated for 35.3 these programs and projects. 35.4 (b) The commissioner shall also report on general fund 35.5 appropriations for capital projects, bond authorizations or bond 35.6 proceed balances that may be canceled because projects have been 35.7 canceled, completed, or otherwise concluded, or because the 35.8 purposes for which the money was appropriated or bonds were 35.9 authorized or issued have been canceled, completed, or otherwise 35.10 concluded. The general fund appropriations, bond authorizations 35.11 or bond proceed balances that are unencumbered or otherwise not 35.12 obligated that are reported by the commissioner under this 35.13 subdivision are canceled, effective July 1 of the year of the 35.14 report, unless specifically reauthorized by act of the 35.15 legislature. 35.16 Sec. 40. Minnesota Statutes 2002, section 16B.24, 35.17 subdivision 5, is amended to read: 35.18 Subd. 5. [RENTING OUT STATE PROPERTY.] (a) [AUTHORITY.] 35.19 The commissioner may rent out state property, real or personal, 35.20 that is not needed for public use, if the rental is not 35.21 otherwise provided for or prohibited by law. The property may 35.22 not be rented out for more than five years at a time without the 35.23 approval of the state executive council and may never be rented 35.24 out for more than 25 years. A rental agreement may provide that 35.25 the state will reimburse a tenant for a portion of capital 35.26 improvements that the tenant makes to state real property if the 35.27 state does not permit the tenant to renew the lease at the end 35.28 of the rental agreement. 35.29 (b) [RESTRICTIONS.] Paragraph (a) does not apply to state 35.30 trust fund lands, other state lands under the jurisdiction of 35.31 the department of natural resources, lands forfeited for 35.32 delinquent taxes, lands acquired under section 298.22, or lands 35.33 acquired under section 41.56 which are under the jurisdiction of 35.34 the department of agriculture. 35.35 (c) [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 35.36 Chapel, located within the boundaries of Fort Snelling State 36.1 Park, is available for use only on payment of a rental fee. The 36.2 commissioner shall establish rental fees for both public and 36.3 private use. The rental fee for private use by an organization 36.4 or individual must reflect the reasonable value of equivalent 36.5 rental space. Rental fees collected under this section must be 36.6 deposited in the general fund. 36.7 (d) [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 36.8 shall establish rental rates for all living accommodations 36.9 provided by the state for its employees. Money collected as 36.10 rent by state agencies pursuant to this paragraph must be 36.11 deposited in the state treasury and credited to the general fund. 36.12 (e) [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 36.13 AGENCIES.] The commissioner may lease portions of the 36.14 state-owned buildings in the capitol complex, the capitol square 36.15 building, the health building, the Duluth government center, and 36.16 the building at 1246 University Avenue, St. Paul, Minnesota, to 36.17 state agencies and the court administrator on behalf of the 36.18 judicial branch of state government and charge rent on the basis 36.19 of space occupied. Notwithstanding any law to the contrary, all 36.20 money collected as rent pursuant to the terms of this section 36.21 shall be deposited in the state treasury. Money collected as 36.22 rent to recover the bond interest costs of a building funded 36.23 from the state bond proceeds fund shall be credited to the 36.24 general fund. Money collected as rent to recover the 36.25 depreciation costs of a building funded from the state bond 36.26 proceeds fund and money collected as rent to recover capital 36.27 expenditures from capital asset preservation and replacement 36.28 appropriations and statewide building access appropriations 36.29 shall be credited to a segregated account in a special revenue 36.30 fund. Fifty percent of the money credited to the account each 36.31 fiscal year must be transferred to the general fund. The 36.32 remaining money in the account is appropriated to the 36.33 commissioner to be expended for asset preservation projects as 36.34 determined by the commissioner. Money collected as rent to 36.35 recover the depreciation and interest costs of a building built 36.36 with other state dedicated funds shall be credited to the 37.1 dedicated fund which funded the original acquisition or 37.2 construction. All other money received shall be credited to the 37.3 general services revolving fund. 37.4 Sec. 41. Minnesota Statutes 2002, section 16B.35, 37.5 subdivision 1, is amended to read: 37.6 Subdivision 1. [PERCENT OF APPROPRIATIONS FOR ART.] An 37.7 appropriation for the construction or alteration of any state 37.8 building may contain an amount not to exceed the lesser of 37.9 $100,000 or one percent of the total appropriation for the 37.10 building for the acquisition of works of art, excluding 37.11 landscaping, which may be an integral part of the building or 37.12 its grounds, attached to the building or grounds or capable of 37.13 being displayed in other state buildings. If the appropriation 37.14 for works of art is limited by the $100,000 cap in this section, 37.15 the appropriation for the construction or alteration of the 37.16 building must be reduced to reflect the reduced amount that will 37.17 be spent on works of art. Money used for this purpose is 37.18 available only for the acquisition of works of art to be 37.19 exhibited in areas of a building or its grounds accessible, on a 37.20 regular basis, to members of the public. No more than ten 37.21 percent of the total amount available each fiscal year under 37.22 this subdivision may be used for administrative expenses, either 37.23 by the commissioner of administration or by any other entity to 37.24 whom the commissioner delegates administrative authority. For 37.25 the purposes of this section "state building" means a building 37.26 the construction or alteration of which is paid for wholly or in 37.27 part by the state. 37.28 Sec. 42. Minnesota Statutes 2002, section 16B.465, 37.29 subdivision 1a, is amended to read: 37.30 Subd. 1a. [CREATION.] Except as provided in subdivision 4, 37.31 the commissioner, through the state information infrastructure, 37.32 shall arrange for the provision of voice, data, video, and other 37.33 telecommunications transmission services to state agencies. The 37.34 state information infrastructure may also serve educational 37.35 institutions, including public schools as defined in section 37.36 120A.05, subdivisions 9, 11, 13, and 17, nonpublic, church or 38.1 religious organization schools that provide instruction in 38.2 compliance with sections 120A.22, 120A.24, and 120A.41, and 38.3 private colleges; public corporations; Indian tribal 38.4 governments;andstate political subdivisions; and public 38.5 noncommercial educational television broadcast stations as 38.6 defined in section 129D.12, subdivision 2. It is not a 38.7 telephone company for purposes of chapter 237. The commissioner 38.8 may purchase, own, or lease any telecommunications network 38.9 facilities or equipment after first seeking bids or proposals 38.10 and having determined that the private sector cannot, will not, 38.11 or is unable to provide these services, facilities, or equipment 38.12 as bid or proposed in a reasonable or timely fashion consistent 38.13 with policy set forth in this section. The commissioner shall 38.14 not resell or sublease any services or facilities to nonpublic 38.15 entities except to serve private schools and colleges. The 38.16 commissioner has the responsibility for planning, development, 38.17 and operations of the state information infrastructure in order 38.18 to provide cost-effective telecommunications transmission 38.19 services to state information infrastructure users consistent 38.20 with the policy set forth in this section. 38.21 Sec. 43. Minnesota Statutes 2002, section 16B.465, 38.22 subdivision 7, is amended to read: 38.23 Subd. 7. [EXEMPTION.] The system is exempt from the 38.24 five-year limitation on contracts set by sections 16C.05, 38.25 subdivision 2, paragraph(a), clause (5)(b), 16C.08, 38.26 subdivision 3, clause(7)(5), and 16C.09, clause(6)(5). 38.27 [EFFECTIVE DATE.] This section is effective the day 38.28 following final enactment. 38.29 Sec. 44. Minnesota Statutes 2002, section 16B.47, is 38.30 amended to read: 38.31 16B.47 [MICROGRAPHICS.] 38.32 The commissionershallmay provide micrographics services 38.33 and products to meet agency needs. Within available resources, 38.34 the commissioner may also provide micrographic services to 38.35 political subdivisions. Agency plans and programs for 38.36 micrographics must be submitted to and receive the approval of 39.1 the commissioner prior to implementation. Upon the 39.2 commissioner's approval, subsidiary or independent microfilm 39.3 operations may be implemented in other state agencies. The 39.4 commissioner may direct that copies of official state documents 39.5 be distributed to official state depositories on microfilm. 39.6 [EFFECTIVE DATE.] This section is effective the day 39.7 following final enactment. 39.8 Sec. 45. Minnesota Statutes 2002, section 16B.48, 39.9 subdivision 2, is amended to read: 39.10 Subd. 2. [PURPOSE OF FUNDS.] Money in the state treasury 39.11 credited to the general services revolving fund and money that 39.12 is deposited in the fund is appropriated annually to the 39.13 commissioner for the following purposes: 39.14 (1) to operate a central store and equipment service; 39.15 (2)to operate a central duplication and printing service;39.16(3)to operate the central mailing service, including 39.17 purchasing postage and related items and refunding postage 39.18 deposits; 39.19(4)(3) to operate a documents service as prescribed by 39.20 section 16B.51; 39.21(5)(4) to provide services for the maintenance, operation, 39.22 and upkeep of buildings and grounds managed by the commissioner 39.23 of administration; 39.24(6)(5) to operate a materials handling service, including 39.25 interagency mail and product delivery, solid waste removal, 39.26 courier service, equipment rental, and vehicle and equipment 39.27 maintenance; 39.28(7)(6) to provide analytical, statistical, and 39.29 organizational development services to state agencies, local 39.30 units of government, metropolitan and regional agencies, and 39.31 school districts; 39.32(8)(7) to operate a records center and provide 39.33 micrographics products and services; and 39.34(9)(8) to perform services for any other agency. Money 39.35 may be expended for this purpose only when directed by the 39.36 governor. The agency receiving the services shall reimburse the 40.1 fund for their cost, and the commissioner shall make the 40.2 appropriate transfers when requested. The term "services" as 40.3 used in this clause means compensation paid officers and 40.4 employees of the state government; supplies, materials, 40.5 equipment, and other articles and things used by or furnished to 40.6 an agency; and utility services and other services for the 40.7 maintenance, operation, and upkeep of buildings and offices of 40.8 the state government. 40.9 [EFFECTIVE DATE.] This section is effective the day 40.10 following final enactment. 40.11 Sec. 46. Minnesota Statutes 2002, section 16B.49, is 40.12 amended to read: 40.13 16B.49 [CENTRAL MAILING SYSTEM.] 40.14 The commissionershallmay maintain and operate for state 40.15 agencies, departments, institutions, and offices a central mail 40.16 handling unit. Official, outgoing mail for units in St. Paul 40.17mustmay be required to be delivered unstamped to the unit. The 40.18 unitshallmay also operate an interoffice mail distribution 40.19 system. The department may add personnel and acquire equipment 40.20 that may be necessary to operate the unit efficiently and 40.21 cost-effectively. Account must be kept of the postage required 40.22 on that mail, which is then a proper charge against the agency 40.23 delivering the mail. To provide funds for the payment of 40.24 postage, each agencyshallmay be required to make advance 40.25 payments to the commissioner sufficient to cover its postage 40.26 obligations for at least 60 days. For purposes of this section, 40.27 the Minnesota state colleges and universities is a state agency. 40.28 [EFFECTIVE DATE.] This section is effective the day 40.29 following final enactment. 40.30 Sec. 47. Minnesota Statutes 2002, section 16B.58, is 40.31 amended by adding a subdivision to read: 40.32 Subd. 6a. [PARKING RESTRICTIONS.] Notwithstanding any law 40.33 to the contrary: 40.34 (1) parking is prohibited in the terraces adjacent to the 40.35 carriage entrance on the south side of the capitol building; 40.36 (2) the ten parking spaces on Aurora Avenue closest to the 41.1 main entrance of the capitol building must be reserved for 41.2 parking by physically disabled persons displaying a certificate 41.3 issued under section 169.345; and 41.4 (3) the remainder of the parking spaces on Aurora Avenue 41.5 must be reserved for the general public during legislative 41.6 session. 41.7 Sec. 48. [16C.045] [REPORTING OF VIOLATIONS] 41.8 A state employee who discovers evidence of violation of 41.9 laws or rules governing state contracts is encouraged to report 41.10 the violation or suspected violation to the employee's 41.11 supervisor, the commissioner or the commissioner's designee, or 41.12 the legislative auditor. The legislative auditor must report to 41.13 the legislative coordinating commission if there are multiple 41.14 complaints about the same agency. The auditor's report to the 41.15 legislative coordinating commission under this section must 41.16 disclose only the number and type of violations alleged. An 41.17 employee making a good faith report under this section is 41.18 covered by section 181.932, prohibiting the employer from 41.19 discriminating against the employee. 41.20 [EFFECTIVE DATE.] This section is effective the day 41.21 following final enactment. 41.22 Sec. 49. Minnesota Statutes 2002, section 16C.05, 41.23 subdivision 2, is amended to read: 41.24 Subd. 2. [CREATION AND VALIDITY OF CONTRACTS.] (a) A 41.25 contract is not valid and the state is not bound by it and no 41.26 agency, without the prior written approval of the commissioner, 41.27 may authorize work to begin on it unless: 41.28 (1) it has first been executed by the head of the agency or 41.29 a delegate who is a party to the contract; 41.30 (2) it has been approved by the commissioner; and 41.31 (3)it has been approved by the attorney general or a41.32delegate as to form and execution;41.33(4)the accounting system shows anobligation in an expense41.34budget orencumbrance for the amount of the contract liability;41.35and. 41.36(5)(b) The combined contract and amendmentsshallmust not 42.1 exceed five years without specific, written approval by the 42.2 commissioner according to established policy, procedures, and 42.3 standards, or unless otherwise provided for by law. The term of 42.4 the original contract must not exceed two years unless the 42.5 commissioner determines that a longer duration is in the best 42.6 interest of the state. Before approving a contract amendment or 42.7 extension, the commissioner must determine that: (1) the goods 42.8 or services to be obtained under the amendment or extension are 42.9 substantially similar to those in the original contract; and (2) 42.10 the contracting agency has demonstrated that the benefits to the 42.11 agency of full and open competition do not justify the time and 42.12 expense of a separate solicitation for the goods or services 42.13 included in the contract amendment or extension. When the 42.14 commissioner approves a contract amendment or extension, the 42.15 commissioner must post a summary of the approval on the 42.16 department's Web site for at least 60 days. The summary must 42.17 include the contract number, agency name, vendor, and the dollar 42.18 amount of the contract amendment or extension. 42.19(b)(c) Grants, interagency agreements, purchase orders, 42.20 work orders, and annual plans need not, in the discretion of the 42.21 commissioner and attorney general, require the signature of the 42.22 commissioner and/or the attorney general. A signature is not 42.23 required for work orders and amendments to work orders related 42.24 to department of transportation contracts. Bond purchase 42.25 agreements by the Minnesota public facilities authority do not 42.26 require the approval of the commissioner. 42.27(c)(d) A fully executed copy of every contract, amendments 42.28 to the contract, and performance evaluations relating to the 42.29 contract must be kept on file at the contracting agency for a 42.30 time equal to that specified for contract vendors and other 42.31 parties in subdivision 5. 42.32 (e) No action may be maintained by a contractor against an 42.33 employee or agency who discloses information about a current or 42.34 former contractor in a performance evaluation, including 42.35 performance evaluations required under section 16C.08, 42.36 subdivision 4a, unless the contractor demonstrates by clear and 43.1 convincing evidence that: 43.2 (1) the information was false and defamatory; 43.3 (2) the employee or agency knew or should have known the 43.4 information was false and acted with malicious intent to injure 43.5 the current or former contractor; and 43.6 (3) the information was acted upon in a manner that caused 43.7 harm to the current or former contractor. 43.8 [EFFECTIVE DATE.] This section is effective the day 43.9 following final enactment. 43.10 Sec. 50. Minnesota Statutes 2002, section 16C.08, 43.11 subdivision 2, is amended to read: 43.12 Subd. 2. [DUTIES OF CONTRACTING AGENCY.] (a) Before an 43.13 agency may seek approval of a professional or technical services 43.14 contract valued in excess of $5,000, it mustcertify to the43.15commissioner thatprovide the following: 43.16 (1) a description of how the proposed contract or amendment 43.17 is necessary and reasonable to advance the statutory mission of 43.18 the agency; 43.19 (2) a description of the agency's plan to notify firms or 43.20 individuals who may be available to perform the services called 43.21 for in the solicitation; and 43.22 (3) a description of the performance measures or other 43.23 tools that will be used to monitor and evaluate contract 43.24 performance. 43.25 (b) In addition to the information in paragraph (a), 43.26 clauses (1) to (3), the agency must certify that: 43.27 (1)no current state employee is able and available to43.28perform the services called for by the contract;43.29(2)the normal competitive bidding mechanisms will not 43.30 provide for adequate performance of the services; 43.31(3) the contractor has certified that the product of the43.32services will be original in character;43.33(4)(2) reasonable effortswerewill be made to publicize 43.34 the availability of the contract to the public; 43.35(5) the agency has received, reviewed, and accepted a43.36detailed work plan from the contractor for performance under the44.1contract, if applicable;44.2(6)(3) the agencyhas developed,will develop andfully44.3intends toimplement,a written plan providing for the 44.4 assignment of specific agency personnel to a monitoring and 44.5 liaison function, the periodic review of interim reports or 44.6 other indications of past performance, and the ultimate 44.7 utilization of the final product of the services;and44.8(7)(4) the agency will not allow the contractor to begin 44.9 work before the contract is fully executed unless an exception 44.10 has been approved by the commissioner and funds are fully 44.11 encumbered.; 44.12 (5) the contract will not establish an employment 44.13 relationship between the state or the agency and any persons 44.14 performing under the contract; and 44.15 (6) in the event the results of the contract work will be 44.16 carried out or continued by state employees upon completion of 44.17 the contract, the contractor is required to include state 44.18 employees in development and training, to the extent necessary 44.19 to ensure that after completion of the contract, state employees 44.20 can perform any ongoing work related to the same function. 44.21 (c) A contract establishes an employment relationship for 44.22 purposes of paragraph (b), clause (5), if, under federal laws 44.23 governing the distinction between an employee and an independent 44.24 contractor, a person would be considered an employee. 44.25 [EFFECTIVE DATE.] This section is effective the day 44.26 following final enactment. 44.27 Sec. 51. Minnesota Statutes 2002, section 16C.08, 44.28 subdivision 3, is amended to read: 44.29 Subd. 3. [PROCEDURE FOR PROFESSIONAL OR TECHNICAL SERVICES 44.30 CONTRACTS.] Before approving a proposed contract for 44.31 professional or technical services, the commissioner must 44.32 determine, at least, that: 44.33 (1) all provisions of subdivision 2 and section 16C.16 have 44.34 been verified or complied with; 44.35 (2) the agency has demonstrated that the work to be 44.36 performed under the contract is necessary to the agency's 45.1 achievement of its statutory responsibilities and there is 45.2 statutory authority to enter into the contract; 45.3 (3)the contract will not establish an employment45.4relationship between the state or the agency and any persons45.5performing under the contract;45.6(4)the contractor and agents are not employees of the 45.7 state; 45.8(5) no agency has previously performed or contracted for45.9the performance of tasks which would be substantially duplicated45.10under the proposed contract;45.11(6)(4) the contracting agency has specified a satisfactory 45.12 method of evaluating and using the results of the work to be 45.13 performed; and 45.14(7)(5) the combined contract and amendments will not 45.15 exceed five years, unless otherwise provided for by law. The 45.16 term of the original contract must not exceed two years unless 45.17 the commissioner determines that a longer duration is in the 45.18 best interest of the state. 45.19 [EFFECTIVE DATE.] This section is effective the day 45.20 following final enactment. 45.21 Sec. 52. Minnesota Statutes 2002, section 16C.08, 45.22 subdivision 4, is amended to read: 45.23 Subd. 4. [REPORTS.] (a) The commissioner shall submit to 45.24 the governor, the chairs of the house ways and means and senate 45.25 finance committees, and the legislative reference library a 45.26 yearly listing of all contracts for professional or technical 45.27 services executed. The report must identify the contractor, 45.28 contract amount, duration, and services to be provided. The 45.29 commissioner shall also issue yearly reports summarizing the 45.30 contract review activities of the department by fiscal year. 45.31 (b) The fiscal year report must be submitted by September 1 45.32 of each year and must: 45.33 (1) be sorted by agency and by contractor; 45.34 (2) show the aggregate value of contracts issued by each 45.35 agency and issued to each contractor; 45.36 (3) distinguish between contracts that are being issued for 46.1 the first time and contracts that are being extended; 46.2 (4) state the termination date of each contract; and 46.3 (5) identify services by commodity code, including topics 46.4 such as contracts for training, contracts for research and 46.5 opinions, and contracts for computer systems. 46.6 (c) Within 30 days of final completion of a contract over 46.7$40,000$50,000 covered by this subdivision, the head of the 46.8 agency entering into the contract must submit a one-page report 46.9 to the commissioner who must submit a copy to the legislative 46.10 reference library. The report must: 46.11 (1) summarize the purpose of the contract, including why it 46.12 was necessary to enter into a contract; 46.13 (2) state the amount spent on the contract; and 46.14 (3)explain why this amount was a cost-effective way to46.15enable the agency to provide its services or products better or46.16more efficientlybe accompanied by the performance evaluation 46.17 prepared in accordance with subdivision 4a. 46.18 [EFFECTIVE DATE.] This section is effective the day 46.19 following final enactment. 46.20 Sec. 53. Minnesota Statutes 2002, section 16C.08, is 46.21 amended by adding a subdivision to read: 46.22 Subd. 4a. [PERFORMANCE EVALUATION.] Upon completion of a 46.23 professional or technical services contract, an agency entering 46.24 into the contract must complete a written performance evaluation 46.25 of the work done under the contract. The evaluation must 46.26 include an appraisal of the contractor's timeliness, quality, 46.27 cost, and overall performance in meeting the terms and 46.28 objectives of the contract, and evaluate the extent to which the 46.29 contract was a cost-effective way to enable the agency to 46.30 provide its services or products better or more efficiently. 46.31 Contractors may request copies of evaluations prepared under 46.32 this subdivision and may respond in writing. Contractor 46.33 responses must be maintained with the contract file. 46.34 [EFFECTIVE DATE.] This section is effective the day 46.35 following final enactment. 46.36 Sec. 54. Minnesota Statutes 2002, section 16C.09, is 47.1 amended to read: 47.2 16C.09 [PROCEDURE FOR SERVICE CONTRACTS.] 47.3(a)Before entering into or approving a service contract, 47.4 the commissioner must determine, at least, that: 47.5 (1)no current state employee is able and available to47.6perform the services called for by the contract;47.7(2)the work to be performed under the contract is 47.8 necessary to the agency's achievement of its statutory 47.9 responsibilities and there is statutory authority to enter into 47.10 the contract; 47.11(3)(2) the contract will not establish an employment 47.12 relationship between the state or the agency and any persons 47.13 performing under the contract; 47.14(4)(3) the contractor and agents are not employees of the 47.15 state; 47.16(5)(4) the contracting agency has specified a satisfactory 47.17 method of evaluating and using the results of the work to be 47.18 performed; and 47.19(6)(5) the combined contract and amendments will not 47.20 exceed five years without specific, written approval by the 47.21 commissioner according to established policy, procedures, and 47.22 standards, or unless otherwise provided for by law. The term of 47.23 the original contract must not exceed two years, unless the 47.24 commissioner determines that a longer duration is in the best 47.25 interest of the state. 47.26(b) For purposes of paragraph (a), clause (1), employees47.27are available if qualified and:47.28(1) are already doing the work in question; or47.29(2) are on layoff status in classes that can do the work in47.30question.47.31An employee is not available if the employee is doing other47.32work, is retired, or has decided not to do the work in question.47.33 [EFFECTIVE DATE.] This section is effective the day 47.34 following final enactment. 47.35 Sec. 55. Minnesota Statutes 2002, section 16C.10, 47.36 subdivision 7, is amended to read: 48.1 Subd. 7. [REVERSE AUCTION.] (a) For the purpose of this 48.2 subdivision, "reverse auction" means a purchasing process in 48.3 which vendors compete to provide goods or services at the lowest 48.4 selling price in an open and interactive environment. 48.5 (b) The provisions of section 16C.06, subdivisions 2 and 3, 48.6 do not apply when the commissioner determines that a reverse 48.7 auction is the appropriate purchasing process. Notwithstanding 48.8 any contrary provision of sections 16C.26 to 16C.28, reverse 48.9 auctions are competitive bids and bid responses to reverse 48.10 auctions may be accepted instead of sealed bids, when the 48.11 commissioner determines that a reverse auction is the 48.12 appropriate purchasing process. 48.13 Sec. 56. Minnesota Statutes 2002, section 16E.01, 48.14 subdivision 3, is amended to read: 48.15 Subd. 3. [DUTIES.] (a) The office shall: 48.16 (1) coordinate the efficient and effective use of available 48.17 federal, state, local, and private resources to develop 48.18 statewide information and communications technology and its 48.19 infrastructure; 48.20 (2) review state agency and intergovernmental information 48.21 and communications systems development efforts involving state 48.22 or intergovernmental funding, including federal funding, provide 48.23 information to the legislature regarding projects reviewed, and 48.24 recommend projects for inclusion in the governor's budget under 48.25 section 16A.11; 48.26 (3) encourage cooperation and collaboration among state and 48.27 local governments in developing intergovernmental communication 48.28 and information systems, and define the structure and 48.29 responsibilities of the information policy council; 48.30 (4) cooperate and collaborate with the legislative and 48.31 judicial branches in the development of information and 48.32 communications systems in those branches; 48.33 (5) continue the development of North Star, the state's 48.34 official comprehensive online service and information 48.35 initiative; 48.36 (6) promote and collaborate with the state's agencies in 49.1 the state's transition to an effectively competitive 49.2 telecommunications market; 49.3 (7) collaborate with entities carrying out education and 49.4 lifelong learning initiatives to assist Minnesotans in 49.5 developing technical literacy and obtaining access to ongoing 49.6 learning resources; 49.7 (8) promote and coordinate public information access and 49.8 network initiatives, consistent with chapter 13, to connect 49.9 Minnesota's citizens and communities to each other, to their 49.10 governments, and to the world; 49.11 (9) promote and coordinate electronic commerce initiatives 49.12 to ensure that Minnesota businesses and citizens can 49.13 successfully compete in the global economy; 49.14 (10) promote and coordinate the regular and periodic 49.15 reinvestment in the core information and communications 49.16 technology infrastructure so that state and local government 49.17 agencies can effectively and efficiently serve their customers; 49.18 (11) facilitate the cooperative development of standards 49.19 for information systems, electronic data practices and privacy, 49.20 and electronic commerce among international, national, state, 49.21 and local public and private organizations; and 49.22 (12) work with others to avoid unnecessary duplication of 49.23 existing services provided by other public and private 49.24 organizations while building on the existing governmental, 49.25 educational, business, health care, and economic development 49.26 infrastructures. 49.27 (b) The commissioner of administration in consultation with 49.28 the commissioner of finance may determine that it is 49.29 cost-effective for agencies to develop and use shared 49.30 information and communications technology systems for the 49.31 delivery of electronic government services. This determination 49.32 may be made if an agency proposes a new system that duplicates 49.33 an existing system, a system in development, or a system being 49.34 proposed by another agency. The commissioner of administration 49.35 shall establish reimbursement rates in cooperation with the 49.36 commissioner of finance to be billed to agencies and other 50.1 governmental entities sufficient to cover the actual 50.2 development, operating, maintenance, and administrative costs of 50.3 the shared systems. The methodology for billing may include 50.4 depositing such funds in the technology enterprise fund, the use 50.5 of interagency agreements, or other means as allowed by law. 50.6 Sec. 57. Minnesota Statutes 2002, section 16E.07, 50.7 subdivision 9, is amended to read: 50.8 Subd. 9. [AGGREGATION OF SERVICE DEMAND.] The office shall 50.9 identify opportunities to aggregate demand for technical 50.10 services required by government units for online activities and 50.11 may contract with governmental or nongovernmental entities to 50.12 provide services. These contracts are not subject to the 50.13 requirements of chapters 16B and 16C, except sections 16C.04, 50.1416C.07,16C.08, and 16C.09. 50.15 [EFFECTIVE DATE.] This section is effective the day 50.16 following final enactment. 50.17 Sec. 58. Minnesota Statutes 2002, section 16E.09, 50.18 subdivision 1, is amended to read: 50.19 Subdivision 1. [FUND ESTABLISHED.] A technology enterprise 50.20 fund is established. Money deposited in the fund is 50.21 appropriated to the commissioner of administration for the 50.22 purpose of funding technology projects among government entities 50.23 that promote cooperation, innovation, and shared use of 50.24 technology and technology standards, and electronic government 50.25 services. Savings generated by information technology and 50.26 communications projects or purchases, including rebates, 50.27 refunds, discounts, or other savings generated from aggregated 50.28 purchases of software, services, or technology products, may be 50.29 deposited in the fund upon agreement by the commissioner of 50.30 administration and the executive of the government entity 50.31 generating the funds. The commissioner of administration may 50.32 apply for and accept grants, contributions, or other gifts from 50.33 the federal government and other public or private sources for 50.34 deposit into the fund. The commissioner may accept paid 50.35 advertising for departmental publications, media productions, 50.36 state Web pages, and other informational materials. Unless 51.1 otherwise provided in statute, advertising revenues received 51.2 shall first be used to defray costs associated with production 51.3 and promotion of advertising activities and the remaining 51.4 balance shall be deposited into the fund. The commissioner may 51.5 not accept paid advertising from an elected official or 51.6 candidate for elected office. The transfer of funds between 51.7 state agencies is subject to the approval of the commissioner of 51.8 finance. The commissioner of finance shall notify the chairs of 51.9 the committees funding the affected state agencies of the 51.10 transfers. Funds are available until June 30, 2005. 51.11 Sec. 59. [43A.311] [DRUG PURCHASING PROGRAM.] 51.12 The commissioner of employee relations, in conjunction with 51.13 other state agencies, shall evaluate whether participation in a 51.14 multistate or multiagency drug purchasing program can reduce 51.15 costs or improve the operations of the drug benefit programs 51.16 administered by the department and other state agencies. The 51.17 commissioner and other state agencies must enter into a contract 51.18 with a vendor or other states for purposes of participating in a 51.19 multistate or multiagency drug purchasing program. 51.20 Sec. 60. Minnesota Statutes 2002, section 69.772, 51.21 subdivision 2, is amended to read: 51.22 Subd. 2. [DETERMINATION OF ACCRUED LIABILITY.] Each 51.23 firefighters' relief association which pays a service pension 51.24 when a retiring firefighter meets the minimum requirements for 51.25 entitlement to a service pension specified in section 424A.02 51.26 and which in its articles of incorporation or bylaws requires 51.27 service credit for a period of service of at least 20 years of 51.28 active service for a totally nonforfeitable service pension 51.29 shall determine the accrued liability of the special fund of the 51.30 firefighters' relief association relative to each activeor51.31deferredmember of the relief association, calculated 51.32 individually using the following table: 51.33 Cumulative Accrued 51.34 Year Liability 51.35 ............. ............. 51.36 1 $ 60 52.1 2 124 52.2 3 190 52.3 4 260 52.4 5 334 52.5 6 410 52.6 7 492 52.7 8 576 52.8 9 666 52.9 10 760 52.10 11 858 52.11 12 962 52.12 13 1070 52.13 14 1184 52.14 15 1304 52.15 16 1428 52.16 17 1560 52.17 18 1698 52.18 19 1844 52.19 20 2000 52.20 21 and thereafter 100 additional 52.21 per year 52.22 As set forth in the table the accrued liability for each 52.23 memberor deferred memberof the relief association corresponds 52.24 to the cumulative years of active service to the credit of the 52.25 member. The accrued liability of the special fund for each 52.26 activeor deferredmember is determined by multiplying the 52.27 accrued liability from the chart by the ratio of the lump sum 52.28 service pension amount currently provided for in the bylaws of 52.29 the relief association to a service pension of $100 per year of 52.30 service. If a member has fractional service as of December 31, 52.31 the figure for service credit to be used for the determination 52.32 of accrued liability pursuant to this section shall be rounded 52.33 to the nearest full year of service credit. The total accrued 52.34 liability of the special fund as of December 31 shall be the sum 52.35 of the accrued liability attributable to each activeor deferred52.36 member of the relief association. 53.1 To the extent that the state auditor considers it to be 53.2 necessary or practical, the state auditor may specify and issue 53.3 procedures, forms, or mathematical tables for use in performing 53.4 the calculations of the accrued liability for deferred members 53.5 pursuant to this subdivision. 53.6 Sec. 61. Minnesota Statutes 2002, section 115A.929, is 53.7 amended to read: 53.8 115A.929 [FEES; ACCOUNTING.] 53.9 Each political subdivision that provides for solid waste 53.10 management shall account for all revenue collected from waste 53.11 management fees, together with interest earned on revenue from 53.12 the fees, separately from other revenue collected by the 53.13 political subdivision and shall report revenue collected from 53.14 the fees and use of the revenue separately from other revenue 53.15 and use of revenue in any required financial report or audit. 53.16 Each political subdivision must file with the director, on or 53.17 before June 30 annually, the separate report of all revenue 53.18 collected from waste management fees, together with interest on 53.19 revenue from the fees, for the previous year. For the purposes 53.20 of this section, "waste management fees" means: 53.21 (1) all fees, charges, and surcharges collected under 53.22 sections 115A.919, 115A.921, and 115A.923; 53.23 (2) all tipping fees collected at waste management 53.24 facilities owned or operated by the political subdivision; 53.25 (3) all charges imposed by the political subdivision for 53.26 waste collection and management services; and 53.27 (4) any other fees, charges, or surcharges imposed on waste 53.28 or for the purpose of waste management, whether collected 53.29 directly from generators or indirectly through property taxes or 53.30 as part of utility or other charges for services provided by the 53.31 political subdivision. 53.32 Sec. 62. Minnesota Statutes 2002, section 116J.8771, is 53.33 amended to read: 53.34 116J.8771 [WAIVER.] 53.35 The capital access program is exempt from section 16C.05, 53.36 subdivision 2, paragraph(a), clause (5)(b). 54.1 [EFFECTIVE DATE.] This section is effective the day 54.2 following final enactment. 54.3 Sec. 63. Minnesota Statutes 2002, section 136F.77, 54.4 subdivision 3, is amended to read: 54.5 Subd. 3. [NO ABROGATION.] Nothing in this section shall 54.6 abrogate the provisions ofsections 43A.047 andsection 136F.581. 54.7 [EFFECTIVE DATE.] This section is effective the day 54.8 following final enactment. 54.9 Sec. 64. Minnesota Statutes 2002, section 179A.03, 54.10 subdivision 7, is amended to read: 54.11 Subd. 7. [ESSENTIAL EMPLOYEE.] "Essential employee" means 54.12 firefighters, peace officers subject to licensure under sections 54.13 626.84 to 626.863, 911 system and police and fire department 54.14 public safety dispatchers, guards at correctional facilities, 54.15 confidential employees, supervisory employees, assistant county 54.16 attorneys, assistant city attorneys, principals, and assistant 54.17 principals. However, for state employees, "essential employee" 54.18 means all employees in law enforcement, health care 54.19 professionals, health care nonprofessionals, correctional 54.20 guards, professional engineering, and supervisory collective 54.21 bargaining units, irrespective of severance, and no other 54.22 employees. For University of Minnesota employees, "essential 54.23 employee" means all employees in law enforcement, nursing 54.24 professional and supervisory units, irrespective of severance, 54.25 and no other employees. "Firefighters" means salaried employees 54.26 of a fire department whose duties include, directly or 54.27 indirectly, controlling, extinguishing, preventing, detecting, 54.28 or investigating fires. Employees for whom the state court 54.29 administrator is the negotiating employer are not essential 54.30 employees. 54.31 [EFFECTIVE DATE.] This section is effective July 1, 2003. 54.32 Sec. 65. Minnesota Statutes 2002, section 192.501, 54.33 subdivision 2, is amended to read: 54.34 Subd. 2. [TUITION AND TEXTBOOK REIMBURSEMENT GRANT 54.35 PROGRAM.] (a) The adjutant general shall establish a program to 54.36 provide tuition and textbook reimbursement grants to eligible 55.1 members of the Minnesota national guard within the limitations 55.2 of this subdivision. 55.3 (b) Eligibility is limited to a member of the national 55.4 guard who: 55.5 (1) is serving satisfactorily as defined by the adjutant 55.6 general; 55.7 (2) is attending a post-secondary educational institution, 55.8 as defined by section 136A.15, subdivision 6, including a 55.9 vocational or technical school operated or regulated by this 55.10 state or another state or province; and 55.11 (3) provides proof of satisfactory completion of 55.12 coursework, as defined by the adjutant general. 55.13 In addition, if a member of the Minnesota national guard is 55.14 killed in the line of state active service or federally funded 55.15 state active service, as defined in section 190.05, subdivisions 55.16 5a and 5b, the member's surviving spouse, and any surviving 55.17 dependent who has not yet reached 24 years of age, is eligible 55.18 for a tuition and textbook reimbursement grant. 55.19 The adjutant general may, within the limitations of this 55.20 paragraph and other applicable laws, determine additional 55.21 eligibility criteria for the grant, and must specify the 55.22 criteria in department regulations and publish changes as 55.23 necessary. 55.24 (c) The amount of a tuition and textbook reimbursement 55.25 grant must be specified on a schedule as determined and 55.26 published in department regulations by the adjutant general, but 55.27 is limited to a maximum of an amount equal to the greater of: 55.28 (1) 80 percent of the cost of tuition for lower division 55.29 programs in the college of liberal arts at the twin cities 55.30 campus of the University of Minnesota in the most recent 55.31 academic year; or 55.32 (2) 80 percent of the cost of tuition for the program in 55.33 which the person is enrolled at that Minnesota public 55.34 institution, or if that public institution is outside the state 55.35 of Minnesota, for the cost of a comparable program at the 55.36 University of Minnesota, except that in the case of a survivor 56.1 as defined in paragraph (b), the amount of the tuition and 56.2 textbook reimbursement grant for coursework satisfactorily 56.3 completed by the person is limited to 100 percent of the cost of 56.4 tuition for post-secondary courses at a Minnesota public 56.5 educational institution. 56.6 Paragraph (b) notwithstanding, a person is no longer 56.7 eligible for a grant under this subdivision once the person has 56.8 received grants under this subdivision for the equivalent of 208 56.9 quarter credits or 144 semester credits of coursework. 56.10 (d) Tuition and textbook reimbursement grants received 56.11 under this subdivision may not be considered by the Minnesota 56.12 higher education services office or by any other state board, 56.13 commission, or entity in determining a person's eligibility for 56.14 a scholarship or grant-in-aid under sections 136A.095 to 56.15 136A.1311. 56.16 (e) If a member fails to complete a term of enlistment 56.17 during which a tuition and textbook reimbursement grant was 56.18 paid, the adjutant general may seek to recoup a prorated amount 56.19 as determined by the adjutant general. 56.20(f) The adjutant general shall maintain records and report56.21any findings to the legislature by March 1, 2003, on the impact56.22of increasing the reimbursement amounts under paragraph (c)56.23during the period July 1, 2001, through December 31, 2002.56.24(g) This paragraph, paragraph (f), and the amendments made56.25by Laws 2001, First Special Session chapter 10 to paragraph (c)56.26expire June 30, 2003.56.27 Sec. 66. Minnesota Statutes 2002, section 197.608, is 56.28 amended to read: 56.29 197.608 [VETERANS SERVICE OFFICE GRANT PROGRAM.] 56.30 Subdivision 1. [GRANT PROGRAM.] A veterans service office 56.31 grant program is established to be administered by the 56.32 commissioner of veterans affairs consisting of grants to 56.33 counties to enable them to enhance the effectiveness of their 56.34 veterans service offices. 56.35 Subd. 2. [RULE DEVELOPMENT.] The commissionerof veterans56.36affairsshall consult with the Minnesota association of county 57.1 veterans service officers in formulating rules to implement the 57.2 grant program. 57.3 Subd. 2a. [GRANT CYCLE.] Counties may become eligible to 57.4 receive grants on a three-year rotating basis according to a 57.5 schedule to be developed and announced in advance by the 57.6 commissioner. The schedule must list no more than one-third of 57.7 the counties in each year of the three-year cycle. A county may 57.8 be considered for a grant only in the year of its listing in the 57.9 schedule. 57.10 Subd. 3. [ELIGIBILITY.] (a) To be eligible for a grant 57.11 under this program, a county must:57.12(1)employ a county veterans service officer as authorized 57.13 by sections 197.60 and 197.606, who is certified to serve in 57.14 this position by the commissionerof veterans affairs;. 57.15(2) submit a written plan for the proposed expenditures to57.16enhance the functioning of the county veterans service office in57.17accordance with the program rules; and57.18(3) apply for the grant according to procedures to be57.19established for this program by the commissioner and receive57.20written approval from the commissioner for the grant in advance57.21of making the proposed expenditures.57.22 (b) A county that employs a newly hired county veterans 57.23 service officer who is serving an initial probationary period 57.24 and who has not been certified by the commissioner is eligible 57.25 to receive a grant under subdivision 2a. 57.26 (c) Except for the situation described in paragraph (b), a 57.27 county whose veterans service officer does not receive 57.28 certification during any year of the three-year cycle is not 57.29 eligible to receive a grant during the remainder of that cycle 57.30 or the next three-year cycle. 57.31 Subd. 4. [GRANTAPPLICATIONPROCESS.] (a)A grant57.32application must be submitted to the department of veterans57.33affairs according to procedures to be established by the57.34commissioner. The grant application must include a specific57.35description of the plan for enhancing the operation of the57.36county veterans service office.The commissioner shall determine 58.1 the process for awarding grants. A grant may be used only for 58.2 the purpose of enhancing the operations of the county veterans 58.3 service office. 58.4 (b) The commissioner shall provide a list of qualifying 58.5 uses for grant expenditures as developed in subdivision 5 and 58.6 shall approve a grantapplicationonlyif it meets the criteria58.7for eligibility as established and announced by the commissioner58.8 for a qualifying use and if there are sufficient funds remaining 58.9 in the grant program to cover the full amount of the grant.The58.10commissioner may request modification of a plan. If the58.11commissioner rejects a grant application, written reasons for58.12the rejection must be provided to the applicant county and the58.13county may modify the application and resubmit it.58.14 Subd. 5. [QUALIFYING USES.] The commissionerof veterans58.15affairsshalldetermine whether the plan specified in the grant58.16application will enable the applicant county to enhance the58.17effectiveness of its county veterans office.58.18Notwithstanding subdivision 3, clause (1), a county may58.19apply for and use a grant for the training and education58.20required by the commissioner for a newly employed county58.21veterans service officer's certificate, or for the continuing58.22education of other staffconsult with the Minnesota association 58.23 of county veterans service officers in developing a list of 58.24 qualifying uses for grants awarded under this program. 58.25 Subd. 6. [GRANT AMOUNT.] The amount of each grant must be 58.26 determined by the commissionerof veterans affairs, and may not 58.27 exceedthe lesser of:58.28(1) the amount specified in the grant application to be58.29expended on the plan for enhancing the effectiveness of the58.30county veterans service office; or58.31(2) the county's share of the total funds available under58.32the program, determined in the following manner:58.33 (i) $1,400, if the county's veteran population is less than 58.34 1,000, the county's grant share shall be $2,000; 58.35 (ii) $2,800, if the county's veteran population is 1,000 or 58.36 more but less than 3,000, the county's grant share shall be59.1$4,000; 59.2 (iii) $4,200, if the county's veteran population is 3,000 59.3 or more but less then 10,000, the county's grant share shall be59.4$6,000; or 59.5 (iv) $5,600, if the county's veteran population is 10,000 59.6 or more, the county's grant share shall be $8,000. 59.7In any year, only one-half of the counties in each of the59.8four veteran population categories (i) to (iv) may be awarded59.9grants. Grants shall be awarded on a first-come first-served59.10basis to counties submitting applications which meet the59.11commissioner's criteria as established in the rules. Any county59.12not receiving a grant in any given year shall receive priority59.13consideration for a grant the following year.59.14In any year, after a period of time to be determined by the59.15commissioner, any amounts remaining from undistributed county59.16grant shares may be reallocated to the other counties which have59.17submitted qualifying application.59.18 The veteran population of each county shall be determined 59.19 by the figure supplied by the United States Department of 59.20 Veterans Affairs, as adopted by the commissioner. 59.21 Subd. 7. [RECAPTURE.] If a county fails to use the grant 59.22 for the qualified use approved by the commissioner, the 59.23 commissioner shall seek recovery of the grant from the county 59.24 and the county must repay the grant amount. 59.25 Sec. 67. Minnesota Statutes 2002, section 240.03, is 59.26 amended to read: 59.27 240.03 [COMMISSION POWERS AND DUTIES.] 59.28 The commission has the following powers and duties: 59.29 (1) to regulate horse racing in Minnesota to ensure that it 59.30 is conducted in the public interest; 59.31 (2) to issue licenses as provided in this chapter; 59.32 (3) to enforce all laws and rules governing horse racing; 59.33 (4) to collect and distribute all taxes provided for in 59.34 this chapter; 59.35 (5) to conduct necessary investigations and inquiries and 59.36 compel the submission of information, documents, and records it 60.1 deems necessary to carry out its duties; 60.2 (6) to supervise the conduct of pari-mutuel betting on 60.3 horse racing; 60.4 (7) to employ and supervise personnel under this chapter; 60.5 (8) to determine the number of racing days to be held in 60.6 the state and at each licensed racetrack;and60.7 (9) to take all necessary steps to ensure the integrity of 60.8 racing in Minnesota.; and 60.9 (10) to impose fees on the racing and card playing 60.10 industries sufficient to recover the operating costs of the 60.11 commission with the approval of the legislature according to 60.12 section 16A.1283. Notwithstanding section 16A.1283, when the 60.13 legislature is not in session, the commissioner of finance may 60.14 grant interim approval for any new fees or adjustments to 60.15 existing fees that are not statutorily specified, until such 60.16 time as the legislature reconvenes and acts upon the new fees or 60.17 adjustments. As part of its biennial budget request, the 60.18 commission must propose changes to its fees that will be 60.19 sufficient to recover the operating costs of the commission. 60.20 Sec. 68. Minnesota Statutes 2002, section 240.10, is 60.21 amended to read: 60.22 240.10 [LICENSE FEES.] 60.23 The fee for a class A license is $10,000 per year. The fee 60.24 for a class B license is $100 for each assigned racing day on 60.25 which racing is actually conducted, and $50 for each day on 60.26 which simulcasting is authorized and actually takes place, plus 60.27 $10,000 per year if the class B license includes authorization 60.28 to operate a card club. The fee for a class D license is $50 60.29 for each assigned racing day on which racing is actually 60.30 conducted. Fees imposed on class B and class D licenses must be 60.31 paid to the commission at a time and in a manner as provided by 60.32 rule of the commission. 60.33 The commission shall by rule establish an annual license 60.34 fee for each occupation it licenses under section 240.08 but no 60.35 annual fee for a class C license may exceed $100. 60.36License fee payments received must be paid by the61.1commission to the state treasurer for deposit in the general61.2fund.61.3 Sec. 69. Minnesota Statutes 2002, section 240.15, 61.4 subdivision 6, is amended to read: 61.5 Subd. 6. [DISPOSITION OF PROCEEDS; ACCOUNT.] The 61.6 commission shall distribute all money received under this 61.7 section, and all money received from license fees and fines it 61.8 collects,as follows:according to this subdivision. All money 61.9 designated for deposit in the Minnesota breeders fund must be 61.10 paid into that fund for distribution under section 240.18 except 61.11 that all money generated by full racing card simulcasts must be 61.12 distributed as provided in section 240.18, subdivisions 2, 61.13 paragraph (d), clauses (1), (2), and (3); and 3. Revenue from 61.14 an admissions tax imposed under subdivision 1 must be paid to 61.15 the local unit of government at whose request it was imposed, at 61.16 times and in a manner the commission determines.All other61.17revenuesTaxes received under this sectionby the commission,61.18and all license fees, fines, and other revenue it receives,and 61.19 fines collected under section 240.22 must be paid to the state 61.20 treasurer for deposit in the general fund. All revenues from 61.21 licenses and other fees imposed by the commission must be 61.22 deposited in the state treasury and credited to a racing and 61.23 card playing regulation account in the special revenue fund. 61.24 Receipts in this account are available for the operations of the 61.25 commission up to the amount authorized in biennial 61.26 appropriations from the legislature. 61.27 Sec. 70. Minnesota Statutes 2002, section 240.155, 61.28 subdivision 1, is amended to read: 61.29 Subdivision 1. [REIMBURSEMENT ACCOUNT CREDIT.] Money 61.30 received by the commission as reimbursement for the costs of 61.31 services provided byassistantveterinarians, stewards, and 61.32 medical testing of horses must be deposited in the state 61.33 treasury and credited to a racing reimbursement account, except 61.34 as provided under subdivision 2. Receipts are appropriated to 61.35 the commission to pay the costs of providing the services. 61.36 Sec. 71. Minnesota Statutes 2002, section 240A.03, 62.1 subdivision 10, is amended to read: 62.2 Subd. 10. [USE AGREEMENTS AND FEES.] The commission may 62.3 lease, license, or enter into agreements and may fix, alter, 62.4 charge, and collect rentals, fees, and charges to persons for 62.5 the use, occupation, and availability of part or all of any 62.6 premises, property, or facilities under its ownership, 62.7 operation, or control.Fees charged by the commission are not62.8subject to section 16A.1285.The commission may also impose 62.9 other fees it deems appropriate with the approval of the 62.10 legislature according to section 16A.1283. Notwithstanding 62.11 section 16A.1283, when the legislature is not in session, the 62.12 commissioner of finance may grant interim approval of the fees, 62.13 until such time as the legislature reconvenes and acts upon the 62.14 fees. Revenues generated by the commission under this section 62.15 must be sufficient to offset the biennial appropriations it 62.16 receives from the legislature and must be deposited to the state 62.17 treasury and credited to the general fund. A use agreement may 62.18 provide that the other contracting party has exclusive use of 62.19 the premises at the times agreed upon. As part of its biennial 62.20 budget request, the commission must propose changes to its fees 62.21 that will be sufficient to recover the direct appropriation to 62.22 the commission. 62.23 Sec. 72. Minnesota Statutes 2002, section 240A.03, 62.24 subdivision 15, is amended to read: 62.25 Subd. 15. [ADVERTISING.] The commission may accept paid 62.26 advertising in its publications. Funds received from 62.27 advertisingare annually appropriated to the commission for its62.28publications. The commission must annually report the amount of62.29funds received under this subdivision to the chair of the house62.30of representatives ways and means and senate finance62.31committeesmust be deposited to the state treasury and credited 62.32 to the general fund. 62.33 Sec. 73. Minnesota Statutes 2002, section 240A.04, is 62.34 amended to read: 62.35 240A.04 [PROMOTION AND DEVELOPMENT OF AMATEUR SPORTS.] 62.36 In addition to the powers and duties granted under section 63.1 240A.03, the commissionshallmay: 63.2 (1) promote the development of olympic training centers; 63.3 (2) promote physical fitness by promoting participation in 63.4 sports; 63.5 (3) develop, foster, and coordinate physical fitness 63.6 services and programs; 63.7 (4) sponsor amateur sport workshops, clinics, and 63.8 conferences; 63.9 (5) provide recognition for outstanding developments, 63.10 achievements, and contributions to amateur sports; 63.11 (6) stimulate and promote amateur sport research; 63.12 (7) collect, disseminate, and communicate amateur sport 63.13 information; 63.14 (8) promote amateur sport and physical fitness programs in 63.15 schools and local communities; 63.16 (9) develop programs to promote personal health and 63.17 physical fitness by participation in amateur sports in 63.18 cooperation with medical, dental, sports medicine, and similar 63.19 professional societies; 63.20 (10) promote the development of recreational amateur sport 63.21 opportunities and activities in the state, including the means 63.22 of facilitating acquisition, financing, construction, and 63.23 rehabilitation of sports facilities for the holding of amateur 63.24 sporting events; 63.25 (11) promote national and international amateur sport 63.26 competitions and events; 63.27 (12) sanction or sponsor amateur sport competition; 63.28 (13) take membership in regional or national amateur sports 63.29 associations or organizations; and 63.30 (14) promote the mainstreaming and normalization of people 63.31 with physical disabilities and visual and hearing impairments in 63.32 amateur sports. 63.33 Sec. 74. Minnesota Statutes 2002, section 240A.06, 63.34 subdivision 1, is amended to read: 63.35 Subdivision 1. [SPONSORSHIP REQUIRED.] The commission 63.36shallmay sponsor and sanction a series of statewide amateur 64.1 athletic games patterned after the winter and summer Olympic 64.2 Games, with variations as required by facilities, equipment, and 64.3 expertise, and as necessary to include people with physical 64.4 disabilities and visual and hearing impairments. The games may 64.5 be held annually beginning in 1989, if money and facilities are 64.6 available, unless the time of the games would conflict with 64.7 other sporting events as the commission determines. 64.8 Sec. 75. Minnesota Statutes 2002, section 256B.435, 64.9 subdivision 2a, is amended to read: 64.10 Subd. 2a. [DURATION AND TERMINATION OF CONTRACTS.] (a) All 64.11 contracts entered into under this section are for a term of one 64.12 year. Either party may terminate this contract at any time 64.13 without cause by providing 90 calendar days' advance written 64.14 notice to the other party. Notwithstanding section 16C.05, 64.15 subdivisions 2, paragraph(a)(b), and 5, if neither party 64.16 provides written notice of termination, the contract shall be 64.17 renegotiated for additional one-year terms or the terms of the 64.18 existing contract will be extended for one year. The provisions 64.19 of the contract shall be renegotiated annually by the parties 64.20 prior to the expiration date of the contract. The parties may 64.21 voluntarily renegotiate the terms of the contract at any time by 64.22 mutual agreement. 64.23 (b) If a nursing facility fails to comply with the terms of 64.24 a contract, the commissioner shall provide reasonable notice 64.25 regarding the breach of contract and a reasonable opportunity 64.26 for the facility to come into compliance. If the facility fails 64.27 to come into compliance or to remain in compliance, the 64.28 commissioner may terminate the contract. If a contract is 64.29 terminated, provisions of section 256B.48, subdivision 1a, shall 64.30 apply. 64.31 [EFFECTIVE DATE.] This section is effective the day 64.32 following final enactment. 64.33 Sec. 76. Minnesota Statutes 2002, section 268.186, is 64.34 amended to read: 64.35 268.186 [RECORDS.] 64.36 (a) Each employer shall keep true and accurate records for 65.1 the periods of time and containing the information the 65.2 commissioner may require. For the purpose of administering this 65.3 chapter, the commissioner has the power to examine, or cause to 65.4 be supplied or copied, any books, correspondence, papers, 65.5 records, or memoranda that are relevant, whether the books, 65.6 correspondence, papers, records, or memoranda are the property 65.7 of or in the possession of the employer or any other person at 65.8 any reasonable time and as often as may be necessary. 65.9 (b) The commissioner may make summaries, compilations, 65.10 photographs, duplications, or reproductions of any records, or 65.11 reports that the commissioner considers advisable for the 65.12 preservation of the information contained therein. Any 65.13 summaries, compilations, photographs, duplications, or 65.14 reproductions shall be admissible in any proceeding under this 65.15 chapter.Regardless of any restrictions contained in section65.1616B.50,The commissioner may duplicate records, reports, 65.17 summaries, compilations, instructions, determinations, or any 65.18 other written or recorded matter pertaining to the 65.19 administration of this chapter. 65.20 (c) Regardless of any law to the contrary, the commissioner 65.21 may provide for the destruction of any records, reports, or 65.22 reproductions thereof, or other papers, that are more than two 65.23 years old, and that are no longer necessary for determining 65.24 employer liability or an applicant's unemployment benefit rights 65.25 or for the administration of this chapter, including any 65.26 required audit. The commissioner may provide for the 65.27 destruction or disposition of any record, report, or other paper 65.28 that has been photographed, duplicated, or reproduced. 65.29 [EFFECTIVE DATE.] This section is effective the day 65.30 following final enactment. 65.31 Sec. 77. Minnesota Statutes 2002, section 270.052, is 65.32 amended to read: 65.33 270.052 [AGREEMENT WITH INTERNAL REVENUE SERVICE.] 65.34 Pursuant to section 270B.12, the commissioner may enter 65.35 into an agreement with the Internal Revenue Service to identify 65.36 taxpayers who have refunds due from the department of revenue 66.1 and liabilities owing to the Internal Revenue Service. In 66.2 accordance with the procedures established in the agreement, the 66.3 Internal Revenue Service may levy against the refunds to be paid 66.4 by the department of revenue. For each refund levied upon, the 66.5 commissioner shall first deduct from the refund a fee of $20, 66.6 and then remit the refund or the amount of the levy, whichever 66.7 is less, to the Internal Revenue Service. The proceeds of fees 66.8 shall be deposited into the department of revenue recapture 66.9 revolving fund under section 270A.07, subdivision 1. 66.10 [EFFECTIVE DATE.] This section is effective the day 66.11 following final enactment. 66.12 Sec. 78. Minnesota Statutes 2002, section 270.44, is 66.13 amended to read: 66.14 270.44 [CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.] 66.15The board may establish reasonable fees or charges for66.16courses, examinations or materials, the proceeds of which shall66.17be used to finance the activities and operation of the board.66.18 The board shall charge the following fees: 66.19 (1) $105 for a senior accredited Minnesota assessor 66.20 license; 66.21 (2) $80 for an accredited Minnesota assessor license; 66.22 (3) $65 for a certified Minnesota assessor specialist 66.23 license; 66.24 (4) $55 for a certified Minnesota assessor license; 66.25 (5) $50 for a course challenge examination; 66.26 (6) $35 for grading a form appraisal; 66.27 (7) $60 for grading a narrative appraisal; 66.28 (8) $30 for a reinstatement fee; 66.29 (9) $25 for a record retention fee; 66.30 (10) $20 for an educational transcript; and 66.31 (11) $30 for all retests of board-sponsored educational 66.32 courses. 66.33 [EFFECTIVE DATE.] This section is effective for license 66.34 terms beginning on or after July 1, 2004, and for all other fees 66.35 imposed on or after July 1, 2004. 66.36 Sec. 79. Minnesota Statutes 2002, section 270A.07, 67.1 subdivision 1, is amended to read: 67.2 Subdivision 1. [NOTIFICATION REQUIREMENT.] Any claimant 67.3 agency, seeking collection of a debt through setoff against a 67.4 refund due, shall submit to the commissioner information 67.5 indicating the amount of each debt and information identifying 67.6 the debtor, as required by section 270A.04, subdivision 3. 67.7 For each setoff of a debt against a refund due, the 67.8 commissioner shall charge a fee of$10$15. The proceeds of 67.9 fees shall be allocated by depositing$2.55$4 of each$10$15 67.10 fee collected into a department of revenue recapture revolving 67.11 fund and depositing the remaining balance into the general 67.12 fund. The sums deposited into the revolving fund are 67.13 appropriated to the commissioner for the purpose of 67.14 administering the Revenue Recapture Act. 67.15 The claimant agency shall notify the commissioner when a 67.16 debt has been satisfied or reduced by at least $200 within 30 67.17 days after satisfaction or reduction. 67.18 [EFFECTIVE DATE.] This section is effective for refund 67.19 setoffs after June 30, 2003. 67.20 Sec. 80. Minnesota Statutes 2002, section 289A.08, 67.21 subdivision 16, is amended to read: 67.22 Subd. 16. [TAX REFUND OR RETURN PREPARERS; ELECTRONIC 67.23 FILING; PAPER FILING FEE IMPOSED.] (a) A "tax refund or return 67.24 preparer," as defined in section 289A.60, subdivision 13, 67.25 paragraph (g), who prepared more than 500 Minnesota individual 67.26 income tax returns for the prior calendar year must file all 67.27 Minnesota individual income tax returns prepared for the current 67.28 calendar year by electronic means. 67.29 (b) For tax returns prepared for the tax year beginning in 67.30 2001, the "500" in paragraph (a) is reduced to 250. 67.31 (c) For tax returns prepared for tax years beginning after 67.32 December 31, 2001, the "500" in paragraph (a) is reduced to 100. 67.33 (d) Paragraph (a) does not apply to a return if the 67.34 taxpayer has indicated on the return that the taxpayer did not 67.35 want the return filed by electronic means. 67.36 (e) For each return that is not filed electronically by a 68.1 tax refund or return preparer under this subdivision, including 68.2 returns filed under paragraph (d), a paper filing fee of $5 is 68.3 imposed upon the preparer. The fee is collected from the 68.4 preparer in the same manner as income tax. If the department of 68.5 revenue requires that a return be filed in writing, no fee shall 68.6 be imposed upon the preparer. 68.7 [EFFECTIVE DATE.] This section is effective for returns 68.8 filed for tax years beginning after December 31, 2002. 68.9 Sec. 81. Minnesota Statutes 2002, section 306.95, is 68.10 amended to read: 68.11 306.95 [DUTIES OF THE COUNTY AUDITOR.] 68.12 Subdivision 1. [NOTIFICATIONOF STATE AUDITOR.] Any county 68.13 auditor finding evidence of violations of this chapter when 68.14 reviewing reports or bonds filed by any person, firm, 68.15 partnership, association, or corporation operating a cemetery, 68.16 mausoleum, or columbarium must notify thestate auditor's office68.17 county attorney in a timely manner of such finding. 68.18 Subd. 2. [ANNUAL LETTER.] Every county auditor must file 68.19 an annual letter by May 31 with thestate auditor's office68.20 county attorney disclosing whether the county auditor has 68.21 detected any indications of violations of this chapter in the 68.22 reports or bonds which were filed or should have been filed. If 68.23 the county auditor has not detected from the information 68.24 supplied to the county auditor any such indications, that fact 68.25 must be reported to thestate auditorcounty attorney in the 68.26 annual letter. 68.27 Sec. 82. [326.992] [BOND REQUIREMENT; GAS, HEATING, 68.28 VENTILATION, AIR CONDITIONING, REFRIGERATION (G/HVACR) 68.29 CONTRACTORS.] 68.30 (a) A person contracting to do gas, heating, ventilation, 68.31 cooling, air conditioning, fuel burning, or refrigeration work 68.32 must give bond to the state in the amount of $25,000 for all 68.33 work entered into within the state. The bond must be for the 68.34 benefit of persons suffering financial loss by reason of the 68.35 contractor's failure to comply with the requirements of the 68.36 State Mechanical Code. A bond given to the state must be filed 69.1 with the commissioner of administration and is in lieu of all 69.2 other bonds to any political subdivision required for work 69.3 covered by this section. The bond must be written by a 69.4 corporate surety licensed to do business in the state. 69.5 (b) The commissioner of administration may charge each 69.6 person giving bond under this section an annual bond filing fee 69.7 of $25. The money must be deposited in the state government 69.8 special revenue fund and is appropriated to the commissioner to 69.9 cover the cost of administering the bond program. 69.10 Sec. 83. Minnesota Statutes 2002, section 349.12, is 69.11 amended by adding a subdivision to read: 69.12 Subd. 11a. [DISTRIBUTOR SALESPERSON.] "Distributor 69.13 salesperson" means a person who in any manner receives orders 69.14 for gambling equipment or who solicits a licensed, exempt, or 69.15 excluded organization to purchase gambling equipment from a 69.16 licensed distributor. 69.17 Sec. 84. Minnesota Statutes 2002, section 349.12, 69.18 subdivision 25, is amended to read: 69.19 Subd. 25. [LAWFUL PURPOSE.] (a) "Lawful purpose" means one 69.20 or more of the following: 69.21 (1) any expenditure by or contribution to a 501(c)(3) or 69.22 festival organization, as defined in subdivision 15a, provided 69.23 that the organization and expenditure or contribution are in 69.24 conformity with standards prescribed by the board under section 69.25 349.154, which standards must apply to both types of 69.26 organizations in the same manner and to the same extent; 69.27 (2) a contribution to an individual or family suffering 69.28 from poverty, homelessness, or physical or mental disability, 69.29 which is used to relieve the effects of that poverty, 69.30 homelessness, or disability; 69.31 (3) a contribution to an individual for treatment for 69.32 delayed posttraumatic stress syndrome or a contribution to a 69.33 program recognized by the Minnesota department of human services 69.34 for the education, prevention, or treatment of compulsive 69.35 gambling; 69.36 (4) a contribution to or expenditure on a public or private 70.1 nonprofit educational institution registered with or accredited 70.2 by this state or any other state; 70.3 (5) a contribution to a scholarship fund for defraying the 70.4 cost of education to individuals where the funds are awarded 70.5 through an open and fair selection process; 70.6 (6) activities by an organization or a government entity 70.7 which recognize humanitarian or military service to the United 70.8 States, the state of Minnesota, or a community, subject to rules 70.9 of the board, provided that the rules must not include mileage 70.10 reimbursements in the computation of the per occasion 70.11 reimbursement limit and must impose no aggregate annual limit on 70.12 the amount of reasonable and necessary expenditures made to 70.13 support: 70.14 (i) members of a military marching or color guard unit for 70.15 activities conducted within the state; 70.16 (ii) members of an organization solely for services 70.17 performed by the members at funeral services; or 70.18 (iii) members of military marching, color guard, or honor 70.19 guard units may be reimbursed for participating in color guard, 70.20 honor guard, or marching unit events within the state or states 70.21 contiguous to Minnesota at a per participant rate of up to $35 70.22 per occasion; 70.23 (7) recreational, community, and athletic facilities and 70.24 activities intended primarily for persons under age 21, provided 70.25 that such facilities and activities do not discriminate on the 70.26 basis of gender and the organization complies with section 70.27 349.154; 70.28 (8) payment of local taxes authorized under this chapter, 70.29 taxes imposed by the United States on receipts from lawful 70.30 gambling, the taxes imposed by section 297E.02, subdivisions 1, 70.31 4, 5, and 6, and the tax imposed on unrelated business income by 70.32 section 290.05, subdivision 3; 70.33 (9) payment of real estate taxes and assessments on 70.34 permitted gambling premises wholly owned by the licensed 70.35 organization paying the taxes, or wholly leased by a licensed 70.36 veterans organization under a national charter recognized under 71.1 section 501(c)(19) of the Internal Revenue Code, not to exceed: 71.2 (i) for premises used for bingo, the amount that an 71.3 organization may expend under board rules on rent for bingo; and 71.4 (ii) $35,000 per year for premises used for other forms of 71.5 lawful gambling; 71.6 (10) a contribution to the United States, this state or any 71.7 of its political subdivisions, or any agency or instrumentality 71.8 thereof other than a direct contribution to a law enforcement or 71.9 prosecutorial agency; 71.10 (11) a contribution to or expenditure by a nonprofit 71.11 organization which is a church or body of communicants gathered 71.12 in common membership for mutual support and edification in 71.13 piety, worship, or religious observances; 71.14 (12) payment of the reasonable costs of an audit required 71.15 in section 297E.06, subdivision 4, provided the annual audit is 71.16 filed in a timely manner with the department of revenue; 71.17 (13) a contribution to or expenditure on a wildlife 71.18 management project that benefits the public at-large, provided 71.19 that the state agency with authority over that wildlife 71.20 management project approves the project before the contribution 71.21 or expenditure is made; 71.22 (14) expenditures, approved by the commissioner of natural 71.23 resources, by an organization for grooming and maintaining 71.24 snowmobile trails and all-terrain vehicle trails that are (1) 71.25 grant-in-aid trails established under section 85.019, or (2) 71.26 other trails open to public use, including purchase or lease of 71.27 equipment for this purpose; or 71.28 (15) conducting nutritional programs, food shelves, and 71.29 congregate dining programs primarily for persons who are age 62 71.30 or older or disabled; 71.31 (16) a contribution to a community arts organization, or an 71.32 expenditure to sponsor arts programs in the community, including 71.33 but not limited to visual, literary, performing, or musical 71.34 arts; 71.35 (17) payment of heat, water, sanitation, telephone, and 71.36 other utility bills for a building owned or leased by, and used 72.1 as the primary headquarters of, a veterans organization;or72.2 (18) expenditure by a veterans organization of up to $5,000 72.3 in a calendar year in net costs to the organization for meals 72.4 and other membership events, limited to members and spouses, 72.5 held in recognition of military service; or 72.6 (19) payment of fees authorized under this chapter imposed 72.7 by the state of Minnesota to conduct lawful gambling in 72.8 Minnesota. 72.9 (b) Notwithstanding paragraph (a), "lawful purpose" does 72.10 not include: 72.11 (1) any expenditure made or incurred for the purpose of 72.12 influencing the nomination or election of a candidate for public 72.13 office or for the purpose of promoting or defeating a ballot 72.14 question; 72.15 (2) any activity intended to influence an election or a 72.16 governmental decision-making process; 72.17 (3) the erection, acquisition, improvement, expansion, 72.18 repair, or maintenance of real property or capital assets owned 72.19 or leased by an organization, unless the board has first 72.20 specifically authorized the expenditures after finding that (i) 72.21 the real property or capital assets will be used exclusively for 72.22 one or more of the purposes in paragraph (a); (ii) with respect 72.23 to expenditures for repair or maintenance only, that the 72.24 property is or will be used extensively as a meeting place or 72.25 event location by other nonprofit organizations or community or 72.26 service groups and that no rental fee is charged for the use; 72.27 (iii) with respect to expenditures, including a mortgage payment 72.28 or other debt service payment, for erection or acquisition only, 72.29 that the erection or acquisition is necessary to replace with a 72.30 comparable building, a building owned by the organization and 72.31 destroyed or made uninhabitable by fire or natural disaster, 72.32 provided that the expenditure may be only for that part of the 72.33 replacement cost not reimbursed by insurance; (iv) with respect 72.34 to expenditures, including a mortgage payment or other debt 72.35 service payment, for erection or acquisition only, that the 72.36 erection or acquisition is necessary to replace with a 73.1 comparable building a building owned by the organization that 73.2 was acquired from the organization by eminent domain or sold by 73.3 the organization to a purchaser that the organization reasonably 73.4 believed would otherwise have acquired the building by eminent 73.5 domain, provided that the expenditure may be only for that part 73.6 of the replacement cost that exceeds the compensation received 73.7 by the organization for the building being replaced; or (v) with 73.8 respect to an expenditure to bring an existing building into 73.9 compliance with the Americans with Disabilities Act under item 73.10 (ii), an organization has the option to apply the amount of the 73.11 board-approved expenditure to the erection or acquisition of a 73.12 replacement building that is in compliance with the Americans 73.13 with Disabilities Act; 73.14 (4) an expenditure by an organization which is a 73.15 contribution to a parent organization, foundation, or affiliate 73.16 of the contributing organization, if the parent organization, 73.17 foundation, or affiliate has provided to the contributing 73.18 organization within one year of the contribution any money, 73.19 grants, property, or other thing of value; 73.20 (5) a contribution by a licensed organization to another 73.21 licensed organization unless the board has specifically 73.22 authorized the contribution. The board must authorize such a 73.23 contribution when requested to do so by the contributing 73.24 organization unless it makes an affirmative finding that the 73.25 contribution will not be used by the recipient organization for 73.26 one or more of the purposes in paragraph (a); or 73.27 (6) a contribution to a statutory or home rule charter 73.28 city, county, or town by a licensed organization with the 73.29 knowledge that the governmental unit intends to use the 73.30 contribution for a pension or retirement fund. 73.31 Sec. 85. Minnesota Statutes 2002, section 349.151, 73.32 subdivision 4, is amended to read: 73.33 Subd. 4. [POWERS AND DUTIES.] (a) The board has the 73.34 following powers and duties: 73.35 (1) to regulate lawful gambling to ensure it is conducted 73.36 in the public interest; 74.1 (2) to issue licenses to organizations, 74.2 distributors, distributor salespersons, bingo halls, 74.3 manufacturers, and gambling managers; 74.4 (3) to collect and deposit license, permit, and 74.5 registration fees due under this chapter; 74.6 (4) to receive reports required by this chapter and inspect 74.7 all premises, records, books, and other documents of 74.8 organizations, distributors, manufacturers, and bingo halls to 74.9 insure compliance with all applicable laws and rules; 74.10 (5) to make rules authorized by this chapter; 74.11 (6) to register gambling equipment and issue registration 74.12 stamps; 74.13 (7) to provide by rule for the mandatory posting by 74.14 organizations conducting lawful gambling of rules of play and 74.15 the odds and/or house percentage on each form of lawful 74.16 gambling; 74.17 (8) to report annually to the governor and legislature on 74.18 its activities and on recommended changes in the laws governing 74.19 gambling; 74.20 (9) to impose civil penalties of not more than $500 per 74.21 violation on organizations, distributors,employees eligible to74.22make sales on behalf of adistributor salespersons, 74.23 manufacturers, bingo halls, and gambling managers for failure to 74.24 comply with any provision of this chapter or any rule or order 74.25 of the board; 74.26 (10) to issue premises permits to organizations licensed to 74.27 conduct lawful gambling; 74.28 (11) to delegate to the director the authority to issue or 74.29 deny license and premises permit applications and renewals under 74.30 criteria established by the board; 74.31 (12) to suspend or revoke licenses and premises permits of 74.32 organizations, distributors, distributor salespersons, 74.33 manufacturers, bingo halls, or gambling managers as provided in 74.34 this chapter; 74.35 (13) to register employees of organizations licensed to 74.36 conduct lawful gambling; 75.1 (14) to require fingerprints from persons determined by 75.2 board rule to be subject to fingerprinting; 75.3 (15) to delegate to a compliance review group of the board 75.4 the authority to investigate alleged violations, issue consent 75.5 orders, and initiate contested cases on behalf of the board; 75.6 (16) to order organizations, distributors, distributor 75.7 salespersons, manufacturers, bingo halls, and gambling managers 75.8 to take corrective actions; and 75.9 (17) to take all necessary steps to ensure the integrity of 75.10 and public confidence in lawful gambling. 75.11 (b) The board, or director if authorized to act on behalf 75.12 of the board, may by citation assess any organization, 75.13 distributor, employee eligible to make sales on behalf of a 75.14 distributor, manufacturer, bingo hall licensee, or gambling 75.15 manager a civil penalty of not more than $500 per violation for 75.16 a failure to comply with any provision of this chapter or any 75.17 rule adopted or order issued by the board. Any organization, 75.18 distributor, bingo hall licensee, gambling manager, or 75.19 manufacturer assessed a civil penalty under this paragraph may 75.20 request a hearing before the board. Appeals of citations 75.21 imposing a civil penalty are not subject to the provisions of 75.22 the Administrative Procedure Act. 75.23 (c) Allfees andpenalties received by the board must be 75.24 deposited in the general fund. 75.25 (d) All fees imposed by the board under sections 349.16 to 75.26 349.165 must be deposited in the state treasury and credited to 75.27 a lawful gambling regulation account in the special revenue fund. 75.28 Receipts in this account are available for the operations of the 75.29 board up to the amount authorized in biennial appropriations 75.30 from the legislature. 75.31 Sec. 86. Minnesota Statutes 2002, section 349.151, 75.32 subdivision 4b, is amended to read: 75.33 Subd. 4b. [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 75.34 The board may by rule authorize but not require the use of 75.35 pull-tab dispensing devices. 75.36 (b) Rules adopted under paragraph (a): 76.1 (1) must limit the number of pull-tab dispensing devices on 76.2 any permitted premises to three; and 76.3 (2) must limit the use of pull-tab dispensing devices to a 76.4 permitted premises which is (i) a licensed premises for on-sales 76.5 of intoxicating liquor or 3.2 percent malt beverages; or (ii) a 76.6 licensed bingo hall that allows gambling only by persons 18 76.7 years or older. 76.8 (c) Notwithstanding rules adopted under paragraph (b), 76.9 pull-tab dispensing devices may be used in establishments 76.10 licensed for the off-sale of intoxicating liquor, other than 76.11 drugstores and general food stores licensed under section 76.12 340A.405, subdivision 1. 76.13(d) The director may charge a manufacturer a fee of up to76.14$5,000 per pull-tab dispensing device to cover the costs of76.15services provided by an independent testing laboratory to76.16perform testing and analysis of pull-tab dispensing devices.76.17The director shall deposit in a separate account in the state76.18treasury all money the director receives as reimbursement for76.19the costs of services provided by independent testing76.20laboratories that have entered into contracts with the state to76.21perform testing and analysis of pull-tab dispensing devices.76.22Money in the account is appropriated to the director to pay the76.23costs of services under those contracts.76.24 Sec. 87. Minnesota Statutes 2002, section 349.155, 76.25 subdivision 3, is amended to read: 76.26 Subd. 3. [MANDATORY DISQUALIFICATIONS.] (a) In the case of 76.27 licenses for manufacturers, distributors, distributor 76.28 salespersons, bingo halls, and gambling managers, the board may 76.29 not issue or renew a license under this chapter, and shall 76.30 revoke a license under this chapter, if the applicant or 76.31 licensee, or a director, officer, partner, governor, or person 76.32 in a supervisory or management position of the applicant or 76.33 licensee, or an employee eligible to make sales on behalf of the76.34applicant or licensee: 76.35 (1) has ever been convicted of a felony or a crime 76.36 involving gambling; 77.1 (2) has ever been convicted of (i) assault, (ii) a criminal 77.2 violation involving the use of a firearm, or (iii) making 77.3 terroristic threats; 77.4 (3) is or has ever been connected with or engaged in an 77.5 illegal business; 77.6 (4) owes $500 or more in delinquent taxes as defined in 77.7 section 270.72; 77.8 (5) had a sales and use tax permit revoked by the 77.9 commissioner of revenue within the past two years; or 77.10 (6) after demand, has not filed tax returns required by the 77.11 commissioner of revenue. The board may deny or refuse to renew 77.12 a license under this chapter, and may revoke a license under 77.13 this chapter, if any of the conditions in this paragraph are 77.14 applicable to an affiliate or direct or indirect holder of more 77.15 than a five percent financial interest in the applicant or 77.16 licensee. 77.17 (b) In the case of licenses for organizations, the board 77.18 may not issue or renew a license under this chapter, and shall 77.19 revoke a license under this chapter, if the organization, or an 77.20 officer or member of the governing body of the organization: 77.21 (1) has been convicted of a felony or gross misdemeanor 77.22 within the five years before the issuance or renewal of the 77.23 license; 77.24 (2) has ever been convicted of a crime involving gambling; 77.25 or 77.26 (3) has had a license issued by the board or director 77.27 permanently revoked for violation of law or board rule. 77.28 Sec. 88. Minnesota Statutes 2002, section 349.16, 77.29 subdivision 6, is amended to read: 77.30 Subd. 6. [LICENSECLASSIFICATIONSFEES.]The board may77.31issue four classes of organization licenses: a class A license77.32authorizing all forms of lawful gambling; a class B license77.33authorizing all forms of lawful gambling except bingo; a class C77.34license authorizing bingo only, or bingo and pull-tabs if the77.35gross receipts for any combination of bingo and pull-tabs does77.36not exceed $50,000 per year; and a class D license authorizing78.1raffles only.The board shallnot charge a fee for an78.2organizationimpose a fee of $100 for an organization's initial 78.3 license application. There is no charge for a renewal license. 78.4 Sec. 89. Minnesota Statutes 2002, section 349.16, is 78.5 amended by adding a subdivision to read: 78.6 Subd. 11. [AGREEMENT TO PAY TAXES.] A 501(c)(3) 78.7 organization which is recognized by federal law, regulation, or 78.8 other ruling as a quasi-governmental organization that would 78.9 otherwise be exempt from one or more taxes under chapter 297E 78.10 must agree to pay all taxes under chapter 297E on lawful 78.11 gambling conducted by the organization as a condition of 78.12 receiving or renewing a license or premises permit. 78.13 Sec. 90. Minnesota Statutes 2002, section 349.161, 78.14 subdivision 1, is amended to read: 78.15 Subdivision 1. [PROHIBITED ACTS; LICENSES REQUIRED.] (a) 78.16 No person may: 78.17 (1) sell, offer for sale, or furnish gambling equipment for 78.18 use within the state other than for lawful gambling exempt or 78.19 excluded from licensing, except to an organization licensed for 78.20 lawful gambling; 78.21 (2) sell, offer for sale, or furnish gambling equipment for 78.22 use within the state without having obtained a distributor 78.23 license or a distributor salesperson license under this section; 78.24 (3) sell, offer for sale, or furnish gambling equipment for 78.25 use within the state that is not purchased or obtained from a 78.26 manufacturer or distributor licensed under this chapter; or 78.27 (4) sell, offer for sale, or furnish gambling equipment for 78.28 use within the state that has the same serial number as another 78.29 item of gambling equipment of the same type sold or offered for 78.30 sale or furnished for use in the state by that distributor. 78.31 (b) No licensed distributor salesperson may sell, offer for 78.32 sale, or furnish gambling equipment for use within the state 78.33 without being employed by a licensed distributor or owning a 78.34 distributor license. 78.35 Sec. 91. Minnesota Statutes 2002, section 349.161, 78.36 subdivision 4, is amended to read: 79.1 Subd. 4. [FEES.] (a) Theinitialannual fee for a 79.2 distributor's license is$3,500$6,000.The initial term of a79.3distributor's license is one year. Renewal licenses under this79.4section are valid for two years and the fee for the renewal79.5license is $7,000.79.6 (b) The annual fee for a distributor salesperson license is 79.7 $100. 79.8 Sec. 92. Minnesota Statutes 2002, section 349.161, 79.9 subdivision 5, is amended to read: 79.10 Subd. 5. [PROHIBITION.] (a) No distributor, distributor 79.11 salesperson, or other employee of a distributor, may also be a 79.12 wholesale distributor of alcoholic beverages or an employee of a 79.13 wholesale distributor of alcoholic beverages. 79.14 (b) No distributor, distributor salesperson, or any 79.15 representative, agent, affiliate, or other employee of a 79.16 distributor, may: (1) be involved in the conduct of lawful 79.17 gambling by an organization; (2) keep or assist in the keeping 79.18 of an organization's financial records, accounts, and 79.19 inventories; or (3) prepare or assist in the preparation of tax 79.20 forms and other reporting forms required to be submitted to the 79.21 state by an organization. 79.22 (c) No distributor, distributor salesperson, or any 79.23 representative, agent, affiliate, or other employee of a 79.24 distributor may provide a lessor of gambling premises any 79.25 compensation, gift, gratuity, premium, or other thing of value. 79.26 (d) No distributor, distributor salesperson, or any 79.27 representative, agent, affiliate, or other employee of a 79.28 distributor may participate in any gambling activity at any 79.29 gambling site or premises where gambling equipment purchased 79.30 from that distributor or distributor salesperson is being used 79.31 in the conduct of lawful gambling. 79.32 (e) No distributor, distributor salesperson, or any 79.33 representative, agent, affiliate, or other employee of a 79.34 distributor may alter or modify any gambling equipment, except 79.35 to add a "last ticket sold" prize sticker. 79.36 (f) No distributor, distributor salesperson, or any 80.1 representative, agent, affiliate, or other employee of a 80.2 distributor may: (1) recruit a person to become a gambling 80.3 manager of an organization or identify to an organization a 80.4 person as a candidate to become gambling manager for the 80.5 organization; or (2) identify for an organization a potential 80.6 gambling location. 80.7 (g) No distributor or distributor salesperson may purchase 80.8 gambling equipment for resale to a person for use within the 80.9 state from any person not licensed as a manufacturer under 80.10 section 349.163. 80.11 (h) No distributor or distributor salesperson may sell 80.12 gambling equipment to any person for use in Minnesota other than 80.13 (i) a licensed organization or organization excluded or exempt 80.14 from licensing, or (ii) the governing body of an Indian tribe. 80.15 (i) No distributor or distributor salesperson may sell or 80.16 otherwise provide a pull-tab or tipboard deal with the symbol 80.17 required by section 349.163, subdivision 5, paragraph (h), 80.18 visible on the flare to any person other than in Minnesota to a 80.19 licensed organization or organization exempt from licensing. 80.20 Sec. 93. Minnesota Statutes 2002, section 349.162, 80.21 subdivision 1, is amended to read: 80.22 Subdivision 1. [STAMP REQUIRED.] (a) A distributor may not 80.23 sell, transfer, furnish, or otherwise provide to a person, and 80.24 no person may purchase, borrow, accept, or acquire from a 80.25 distributor gambling equipment for use within the state unless 80.26 the equipment has been registered with the board and has a 80.27 registration stamp affixed, except for gambling equipment not 80.28 stamped by the manufacturer pursuant to section 349.163, 80.29 subdivision 5 or 8.The board shall charge a fee of five cents80.30for each stamp.Each stamp must bear a registration number 80.31 assigned by the board.A distributor or manufacturer is80.32entitled to a refund for unused registration stamps and80.33replacement for registration stamps which are defective or80.34canceled by the distributor or manufacturer.80.35 (b) A manufacturer must return all unused registration 80.36 stamps in its possession to the board by February 1, 1995. No 81.1 manufacturer may possess unaffixed registration stamps after 81.2 February 1, 1995. 81.3 (c) After February 1, 1996, no person may possess any 81.4 unplayed pull-tab or tipboard deals with a registration stamp 81.5 affixed to the flare or any unplayed paddleticket cards with a 81.6 registration stamp affixed to the master flare. This paragraph 81.7 does not apply to unplayed pull-tab or tipboard deals with a 81.8 registration stamp affixed to the flare, or to unplayed 81.9 paddleticket cards with a registration stamp affixed to the 81.10 master flare, if the deals or cards are identified on a list of 81.11 existing inventory submitted by a licensed organization or a 81.12 licensed distributor, in a format prescribed by the commissioner 81.13 of revenue, to the commissioner of revenue on or before February 81.14 1, 1996. Gambling equipment kept in violation of this paragraph 81.15 is contraband under section 349.2125. 81.16 Sec. 94. Minnesota Statutes 2002, section 349.163, 81.17 subdivision 2, is amended to read: 81.18 Subd. 2. [LICENSE; FEE.]The initial license under this81.19section is valid for one year. The fee for the initial license81.20is $5,000. Renewal licenses under this section are valid for81.21two years and the fee for the renewal license is $10,000.The 81.22 annual fee for a manufacturer's license is $9,000. 81.23 Sec. 95. Minnesota Statutes 2002, section 349.163, 81.24 subdivision 6, is amended to read: 81.25 Subd. 6. [SAMPLES OF GAMBLING EQUIPMENT.] The board shall 81.26 require each licensed manufacturer to submit to the board one or 81.27 more samples of each item of gambling equipment the manufacturer 81.28 manufactures for use or resale in this state. The board shall 81.29 inspect and test all the equipment it deems necessary to 81.30 determine the equipment's compliance with law and board rules. 81.31 Samples required under this subdivision must be approved by the 81.32 board before the equipment being sampled is shipped into or sold 81.33 for use or resale in this state. The board shall impose a fee 81.34 of $25 for each item of gambling equipment that the manufacturer 81.35 submits for approval or for which the manufacturer requests 81.36 approval. The board shall impose a fee of $100 for each sample 82.1 of gambling equipment that it tests. The board may require 82.2 samples of gambling equipment to be tested by an independent 82.3 testing laboratory prior to submission to the board for 82.4 approval. All costs of testing by an independent testing 82.5 laboratory must be borne by the manufacturer. An independent 82.6 testing laboratory used by a manufacturer to test samples of 82.7 gambling equipment must be approved by the board before the 82.8 equipment is submitted to the laboratory for testing. The board 82.9 may request the assistance of the commissioner of public safety 82.10 and the director of the state lottery in performing the tests. 82.11 Sec. 96. Minnesota Statutes 2002, section 349.164, 82.12 subdivision 4, is amended to read: 82.13 Subd. 4. [FEES; TERM OF LICENSE.] Theinitialannual fee 82.14 for a bingo hall license is$2,500$4,000.An initial license82.15under this section is valid for one year. Renewal licenses82.16under this section are valid for two years and the fee for the82.17renewal license is $5,000.82.18 Sec. 97. Minnesota Statutes 2002, section 349.165, 82.19 subdivision 3, is amended to read: 82.20 Subd. 3. [FEES.](a) The board may issue four classes of82.21premises permits corresponding to the classes of licenses82.22authorized under section 349.16, subdivision 6. The fee for82.23each class of permit is:82.24(1) $400 for a class A permit;82.25(2) $250 for a class B permit;82.26(3) $200 for a class C permit; and82.27(4) $150 for a class D permit.82.28(b) If a premises permit is issued during the second year82.29of an organization's license, the fee for each class of permit82.30is:82.31(1) $200 for a class A permit;82.32(2) $125 for a class B permit;82.33(3) $100 for a class C permit; and82.34(4) $75 for a class D permit.82.35 The monthly fee for a premises permit is 0.18 percent of 82.36 the organization's gross receipts from lawful gambling conducted 83.1 at that site. The fee shall be reported and paid on a monthly 83.2 basis in a format as determined by the commissioner of revenue, 83.3 and remitted to the commissioner of revenue along with the 83.4 organization's monthly tax return for that premises. All 83.5 premises permit fees received by the commissioner of revenue 83.6 pursuant to this subdivision must be deposited in the lawful 83.7 gambling regulation account of the special revenue fund 83.8 according to section 349.151. Failure to pay the monthly 83.9 premises permit fees in a timely manner may result in 83.10 disciplinary action by the board. 83.11 Sec. 98. Minnesota Statutes 2002, section 349.166, 83.12 subdivision 1, is amended to read: 83.13 Subdivision 1. [EXCLUSIONS.] (a) Bingo may be conducted 83.14 without a license and without complying with sections 349.168, 83.15 subdivisions 1 and 2; 349.17, subdivisions 1, 4, and 5; 349.18, 83.16 subdivision 1; and 349.19, if it is conducted: 83.17 (1) by an organization in connection with a county fair, 83.18 the state fair, or a civic celebration and is not conducted for 83.19 more than 12 consecutive days and is limited to no more than 83.20 four separate applications for activities applied for and 83.21 approved in a calendar year; or 83.22 (2) by an organization that conducts four or fewer bingo 83.23 occasions in a calendar year. 83.24 An organization that holds a license to conduct lawful 83.25 gambling under this chapter may not conduct bingo under this 83.26 subdivision. 83.27 (b) Bingo may be conducted within a nursing home or a 83.28 senior citizen housing project or by a senior citizen 83.29 organization if the prizes for a single bingo game do not exceed 83.30 $10, total prizes awarded at a single bingo occasion do not 83.31 exceed $200, no more than two bingo occasions are held by the 83.32 organization or at the facility each week, only members of the 83.33 organization or residents of the nursing home or housing project 83.34 are allowed to play in a bingo game, no compensation is paid for 83.35 any persons who conduct the bingo, and a manager is appointed to 83.36 supervise the bingo. Bingo conducted under this paragraph is 84.1 exempt from sections 349.11 to 349.23, and the board may not 84.2 require an organization that conducts bingo under this 84.3 paragraph, or the manager who supervises the bingo, to register 84.4 or file a report with the board. The gross receipts from bingo 84.5 conducted under the limitations of this subdivision are exempt 84.6 from taxation under chapter 297A. 84.7 (c) Raffles may be conducted by an organization without a 84.8 license and without complying with sections 349.154 to 349.165 84.9 and 349.167 to 349.213 if the value of all raffle prizes awarded 84.10 by the organization in a calendar year does not 84.11 exceed$750$1,500. 84.12 (d) Except as provided in paragraph (b), the organization 84.13 must maintain all required records of excluded gambling activity 84.14 for 3-1/2 years. 84.15 Sec. 99. Minnesota Statutes 2002, section 349.166, 84.16 subdivision 2, is amended to read: 84.17 Subd. 2. [EXEMPTIONS.] (a) Lawful gambling may be 84.18 conducted by an organization without a license and without 84.19 complying with sections 349.168, subdivisions 1 and 2; 349.17, 84.20 subdivisions 4 and 5; 349.18, subdivision 1; and 349.19 if: 84.21 (1) the organization conducts lawful gambling on five or 84.22 fewer days in a calendar year; 84.23 (2) the organization does not award more than $50,000 in 84.24 prizes for lawful gambling in a calendar year; 84.25 (3) the organization pays a fee of$25$50 to the board, 84.26 notifies the board in writing not less than 30 days before each 84.27 lawful gambling occasion of the date and location of the 84.28 occasion, or 60 days for an occasion held in the case of a city 84.29 of the first class, the types of lawful gambling to be 84.30 conducted, the prizes to be awarded, and receives an exemption 84.31 identification number; 84.32 (4) the organization notifies the local government unit 30 84.33 days before the lawful gambling occasion, or 60 days for an 84.34 occasion held in a city of the first class; 84.35 (5) the organization purchases all gambling equipment and 84.36 supplies from a licensed distributor; and 85.1 (6) the organization reports to the board, on a single-page 85.2 form prescribed by the board, within 30 days of each gambling 85.3 occasion, the gross receipts, prizes, expenses, expenditures of 85.4 net profits from the occasion, and the identification of the 85.5 licensed distributor from whom all gambling equipment was 85.6 purchased. 85.7 (b) If the organization fails to file a timely report as 85.8 required by paragraph (a), clause (3) or (6), the board shall 85.9 not issue any authorization, license, or permit to the 85.10 organization to conduct lawful gambling on an exempt, excluded, 85.11 or licensed basis until the report has been filed. 85.12 (c) Merchandise prizes must be valued at their fair market 85.13 value. 85.14 (d) Unused pull-tab and tipboard deals must be returned to 85.15 the distributor within seven working days after the end of the 85.16 lawful gambling occasion. The distributor must accept and pay a 85.17 refund for all returns of unopened and undamaged deals returned 85.18 under this paragraph. 85.19 (e) An organization that is exempt from taxation on 85.20 purchases of pull-tabs and tipboards under section 297E.02, 85.21 subdivision 4, paragraph (b), clause (4), must return to the 85.22 distributor any tipboard or pull-tab deal no part of which is 85.23 used at the lawful gambling occasion for which it was purchased 85.24 by the organization. 85.25 (f) The organization must maintain all required records of 85.26 exempt gambling activity for 3-1/2 years. 85.27 Sec. 100. [349.2113] 85.28 On or after January 1, 2004, a licensed organization may 85.29 not put into play a pull-tab or tipboard deal that provides for 85.30 a prize payout of greater than 85 percent of the ideal gross of 85.31 the deal. 85.32 Sec. 101. Minnesota Statutes 2002, section 349A.08, 85.33 subdivision 5, is amended to read: 85.34 Subd. 5. [PAYMENT; UNCLAIMED PRIZES.] A prize in the state 85.35 lottery must be claimed by the winner within one year of the 85.36 date of the drawing at which the prize was awarded or the last 86.1 day sales were authorized for a game where a prize was 86.2 determined in a manner other than by means of a drawing. If a 86.3 valid claim is not made for a prize payable directly by the 86.4 lottery by the end of this period, the prize money is considered 86.5 unclaimed and the winner of the prize shall have no further 86.6 claim to the prize. A prize won by a person who purchased the 86.7 winning ticket in violation of section 349A.12, subdivision 1, 86.8 or won by a person ineligible to be awarded a prize under 86.9 subdivision 7 must be treated as an unclaimed prize under this 86.10 section. The directorshallmust transfer70 percent ofall 86.11 unclaimed prize money at the end of each fiscal year from the 86.12 lottery cash flow accountas follows: of the 70 percent, 4086.13percent must be transferred to the Minnesota environment and86.14natural resources trust fund and 60 percent must be transferred86.15 to the general fund.The remaining 30 percent of the unclaimed86.16prize money must be added by the director to prize pools of86.17subsequent lottery games.86.18 Sec. 102. Minnesota Statutes 2002, section 352D.04, is 86.19 amended by adding a subdivision to read: 86.20 Subd. 3. [ADDITIONAL CONTRIBUTIONS.] The executive 86.21 director of the Minnesota state retirement system must allow a 86.22 participant in the unclassified program a onetime option, at the 86.23 time of hire, under which the employee contribution to the plan 86.24 is ten percent of salary. 86.25 Sec. 103. Minnesota Statutes 2002, section 356.611, 86.26 subdivision 1, is amended to read: 86.27 Subdivision 1. [STATE SALARY LIMITATIONS.] (a) 86.28 Notwithstanding any provision of law, bylaws, articles of 86.29 incorporation, retirement and disability allowance plan 86.30 agreements, or retirement plan contracts to the contrary, the 86.31 covered salary for pension purposes for a plan participant of a 86.32 covered retirement fund enumerated in section 356.30, 86.33 subdivision 3, may not exceed 95 percent of the salary 86.34 established for the governor under section 15A.082 at the time 86.35 the person received the salary. 86.36 (b) This section does not apply to a salary paid: 87.1 (1) to the governor; 87.2 (2) to an employee of a political subdivision in a position 87.3 that is excluded from the limit as specified under section 87.443A.17, subdivision 915A.23; or 87.5 (3) to a state employee in a position for which the 87.6 commissioner of employee relations has approved a salary rate 87.7 that exceeds 95 percent of the governor's salary. 87.8 (c) The limited covered salary determined under this 87.9 section must be used in determining employee and employer 87.10 contributions and in determining retirement annuities and other 87.11 benefits under the respective covered retirement fund and under 87.12 this chapter. 87.13 Sec. 104. Minnesota Statutes 2002, section 458D.17, 87.14 subdivision 5, is amended to read: 87.15 Subd. 5. [AUDIT.] The board shall provide for and pay the 87.16 cost of an independent annual audit of its official books and 87.17 records by the statepublic examinerauditor or a certified 87.18 public accountant. 87.19 Sec. 105. Minnesota Statutes 2002, section 471.696, is 87.20 amended to read: 87.21 471.696 [FISCAL YEAR; DESIGNATION.] 87.22 Beginning in 1979, the fiscal year of a city and all of its 87.23 funds shall be the calendar year, except that a city may, by 87.24 resolution, provide that the fiscal year for city-owned nursing 87.25 homes be the reporting year designated by the commissioner of 87.26 human services. Beginning in 1994, the fiscal year of a town 87.27 and all of its funds shall be the calendar year.The state87.28auditor may upon request of a town and a showing of inability to87.29conform, extend the deadline for compliance with this section87.30for one year.87.31 Sec. 106. Minnesota Statutes 2002, section 471.999, is 87.32 amended to read: 87.33 471.999 [MAINTAINING PAY EQUITY; REPORT TO LEGISLATURE.] 87.34 (a) The state auditor shall monitor compliance by political 87.35 subdivisions with section 471.992, subdivision 1. The state 87.36 auditor may charge and collect a fee pursuant to section 6.56. 88.1 (b) Thecommissioner of employee relationsstate auditor 88.2 shall report to the legislature by January 1 of each year on the 88.3 status of compliance with section 471.992, subdivision 1, by 88.4 governmental subdivisions. 88.5 The report must include a list of the political 88.6 subdivisions in compliance with section 471.992, subdivision 1, 88.7 and the estimated cost of compliance. The report must also 88.8 include a list of political subdivisions found by the 88.9commissionerstate auditor to be not in compliance, the basis 88.10 for that finding, recommended changes to achieve compliance, 88.11 estimated cost of compliance, and recommended penalties, if 88.12 any. Thecommissioner'sauditor's report must include a list of 88.13 subdivisions that did not comply with the reporting requirements 88.14 of this section. Thecommissionerstate auditor may request, 88.15 and a subdivision shall provide, any additional information 88.16 needed for the preparation of a report under this subdivision. 88.17 (c) Notwithstanding any rule to the contrary, beginning in 88.18 2005, a political subdivision must report to the commissioner on 88.19 its compliance with the requirements of sections 471.991 to 88.20 471.999 no more frequently than once every five years. No 88.21 report from a political subdivision is required for 2003 and 88.22 2004. 88.23 Sec. 107. Minnesota Statutes 2002, section 474A.21, is 88.24 amended to read: 88.25 474A.21 [APPROPRIATION; RECEIPTS.] 88.26 Any application fees collected by the department under 88.27 sections 474A.01 to 474A.21 must be deposited ina separate88.28account inthe general fund. The amount necessary to refund 88.29 application deposits is appropriated to the departmentfrom the88.30separate account in the general fundfor that purpose. The 88.31 interest accruing on application deposits and any application 88.32 deposit not refunded as provided under section 474A.061, 88.33 subdivision 4, or 474A.091, subdivision 5, or forfeited as 88.34 provided under section 474A.131, subdivision 2, must be 88.35 deposited in thehousing trustgeneral fundaccount under88.36section 462A.201. 89.1 Sec. 108. Minnesota Statutes 2002, section 477A.014, 89.2 subdivision 4, is amended to read: 89.3 Subd. 4. [COSTS.] The director of the office of strategic 89.4 and long-range planning shall annually bill the commissioner of 89.5 revenue for one-half of the costs incurred by the state 89.6 demographer in the preparation of materials required by section 89.7 4A.02. The state auditor shall bill the commissioner of revenue 89.8 for the costs of best practices reviews and the services 89.9 provided by the government information division and the parts of 89.10 the constitutional office that are related to the government 89.11 information function, not to exceed $217,000 in fiscal year 1992 89.12 and $217,000 in fiscal year 1993 and thereafter. The 89.13 commissioner of administration shall bill the commissioner of 89.14 revenue for the costs of the local government records program 89.15 and the intergovernmental information systems activity, not to 89.16 exceed $201,100 in fiscal year 1992 and $205,800 in fiscal year 89.17 1993 and thereafter.The commissioner of employee relations89.18shall bill the commissioner of revenue for the costs of89.19administering the local government pay equity function, not to89.20exceed $56,000 in fiscal year 1992 and $55,000 in fiscal year89.211993 and thereafter.89.22 [EFFECTIVE DATE.] The requirement in this section for the 89.23 state auditor to bill for costs of best practices reviews is 89.24 effective July 1, 2004. The remainder of the section is 89.25 effective July 1, 2003. 89.26 Sec. 109. Minnesota Statutes 2002, section 624.20, 89.27 subdivision 1, is amended to read: 89.28 Subdivision 1. (a) As used in sections 624.20 to 624.25, 89.29 the term "fireworks" means any substance or combination of 89.30 substances or article prepared for the purpose of producing a 89.31 visible or an audible effect by combustion, explosion, 89.32 deflagration, or detonation, and includes blank cartridges, toy 89.33 cannons, and toy canes in which explosives are used, the type of 89.34 balloons which require fire underneath to propel them, 89.35 firecrackers, torpedoes, skyrockets, Roman candles, daygo bombs, 89.36 sparklers other than those specified in paragraph (c), or other 90.1 fireworks of like construction, and any fireworks containing any 90.2 explosive or inflammable compound, or any tablets or other 90.3 device containing any explosive substance and commonly used as 90.4 fireworks. 90.5 (b) The term "fireworks" shall not include toy pistols, toy 90.6 guns, in which paper caps containing 25/100 grains or less of 90.7 explosive compound are used and toy pistol caps which contain 90.8 less than 20/100 grains of explosive mixture. 90.9 (c) The term also does not include wire or wood sparklers 90.10 of not more than 100 grams of mixture per item, other sparkling 90.11 items which are nonexplosive and nonaerial and contain 75 grams 90.12 or less of chemical mixture per tube or a total of 200 grams or 90.13 less for multiple tubes, snakes and glow worms, smoke devices, 90.14 or trick noisemakers which include paper streamers, party 90.15 poppers, string poppers, snappers, and drop pops, each 90.16 consisting of not more than twenty-five hundredths grains of 90.17 explosive mixture. The use of items listed in this paragraph is 90.18 not permitted on public property. This paragraph does not 90.19 authorize the purchase of items listed in it by persons younger 90.20 than 18 years of age. The age of a purchaser of items listed in 90.21 this paragraph must be verified by photographic identification. 90.22 (d) A local unit of government may impose an annual license 90.23 fee for the retail sale of items authorized under paragraph 90.24 (c). The annual license fee of each retail seller that is in 90.25 the business of selling only the items authorized under 90.26 paragraph (c) may not exceed $350, and the annual license of 90.27 each other retail seller may not exceed $100. A local unit of 90.28 government may not: 90.29 (1) impose any fee or charge, other than the fee authorized 90.30 by this paragraph, on the retail sale of items authorized under 90.31 paragraph (c); 90.32 (2) prohibit or restrict the display of items for retail 90.33 sale authorized under paragraph (c); or 90.34 (3) impose on a retail seller any financial guarantee 90.35 requirements, including bonding or insurance provisions, 90.36 containing restrictions or conditions not imposed on the same 91.1 basis on all other business licensees. 91.2 [EFFECTIVE DATE.] This section is effective the day 91.3 following final enactment. 91.4 Sec. 110. Laws 1998, chapter 366, section 80, as amended 91.5 by Laws 2001, First Special Session chapter 10, article 2, 91.6 section 86, is amended to read: 91.7 Sec. 80. [SETTLEMENT DIVISION; TRANSFER OF JUDGES.] 91.8 The office of administrative hearings shall establish a 91.9 settlement division. The workers' compensation judges at the 91.10 department of labor and industry, together with their support 91.11 staff, offices, furnishings, equipment, and supplies, are 91.12 transferred to the settlement division of the office of 91.13 administrative hearings. Minnesota Statutes, section 15.039, 91.14 applies to the transfer of employees. The settlement division 91.15 of the office of administrative hearings shall maintain offices 91.16 in either Hennepin or Ramsey county and thecitiescity of 91.17 Duluthand Detroit Lakes. The office of a judge in the 91.18 settlement division of the office of administrative hearings and 91.19 the support staff of the judge may be located in a building that 91.20 contains offices of the department of labor and industry. The 91.21 seniority of a workers' compensation judge at the office of 91.22 administrative hearings, after the transfer, shall be based on 91.23 the total length of service as a judge at either agency. For 91.24 purposes of the commissioner's plan under Minnesota Statutes, 91.25 section 43A.18, subdivision 2, all compensation judges at the 91.26 office of administrative hearings shall be considered to be in 91.27 the same employment condition, the same organizational unit and 91.28 qualified for work in either division. 91.29 Sec. 111. [TRANSFER OF DUTIES RELATING TO PAY EQUITY.] 91.30 The responsibilities relating to local government pay 91.31 equity under Minnesota Statutes, sections 471.991 to 471.999, 91.32 and Minnesota Rules, chapter 3920, are transferred from the 91.33 department of employee relations to the state auditor. 91.34 Minnesota Statutes, section 15.039, applies to the transfer of 91.35 responsibilities. 91.36 Sec. 112. [UNCLASSIFIED PLAN.] 92.1 The executive director of the Minnesota state retirement 92.2 system must offer persons who are participants in the 92.3 unclassified plan on the effective date of this section a 92.4 onetime option to choose the ten percent contribution level 92.5 specified in Minnesota Statutes, section 352D.04. 92.6 Sec. 113. [SALARY FREEZE.] 92.7 Subdivision 1. [SALARY INCREASES PROHIBITED.] (a) From the 92.8 effective date of this section through June 30, 2005, a state 92.9 employer must not increase the rate of salary or wages for any 92.10 employee. This section prohibits any increase including, but 92.11 not limited to, across-the-board increases, cost-of-living 92.12 adjustments, increases based on longevity, increases as a result 92.13 of step and lane changes, increases in the form of lump-sum 92.14 payments, increases in employer contributions to deferred 92.15 compensation plans, or any other pay grade adjustments of any 92.16 kind. For purposes of this section, salary or wages does not 92.17 include employer contributions toward the cost of medical or 92.18 dental insurance premiums provided that employee contributions 92.19 to the costs of medical or dental insurance premiums are not 92.20 decreased. 92.21 (b) This section does not prohibit an increase in the rate 92.22 of salary and wages for an employee who is promoted or 92.23 transferred to a position that the employer determines has 92.24 greater job responsibilities. 92.25 (c) Notwithstanding any law to the contrary, the terms of a 92.26 collective bargaining agreement in effect on June 30, 2003, may 92.27 not be extended after that date if the extension would increase 92.28 a salary in a manner prohibited by this section. 92.29 Subd. 2. [FUTURE CONTRACTS.] A contract or collective 92.30 bargaining agreement or compensation plan entered into after 92.31 June 30, 2005, must not provide a retroactive salary, or wage 92.32 increase that applies to a period before June 30, 2005, if that 92.33 increase would be prohibited by this section if granted before 92.34 June 30, 2005. 92.35 Subd. 3. [ARBITRATION AND STRIKES.] Notwithstanding any 92.36 law to the contrary: 93.1 (1) an employee may not legally strike due to a state 93.2 employer's refusal to grant a salary or wage increase if the 93.3 refusal is required to comply with this section; and 93.4 (2) neither a state employer nor an exclusive 93.5 representative may request interest arbitration in relation to 93.6 an increase in the rate of salary or wages that is prohibited by 93.7 this section, and an arbitrator may not issue an award that 93.8 would increase salary or wages in a manner prohibited by this 93.9 section. 93.10 Subd. 4. [DEFINITIONS.] For purposes of this section: 93.11 (1) "state employer" means an appointing authority in the 93.12 executive, legislative, or judicial branches as defined in 93.13 Minnesota Statutes, section 43A.02, subdivisions 5, 22, 25, and 93.14 27; and 93.15 (2) "employee" has the meaning given in Minnesota Statutes, 93.16 section 43A.02, subdivision 21. 93.17 Subd. 5. [RELATION TO OTHER LAW.] This section supersedes 93.18 Minnesota Statutes, chapter 179A, and any other law to the 93.19 contrary. It is not an unfair labor practice under Minnesota 93.20 Statutes, chapter 179A, for a state employer to take any action 93.21 required to comply with this section. 93.22 [EFFECTIVE DATE.] This section is effective July 1, 2003. 93.23 Sec. 114. [UNIVERSITY OF MINNESOTA; SALARY AND WAGE RATE 93.24 FREEZE RECOMMENDED.] 93.25 The legislature strongly recommends that the University of 93.26 Minnesota comply with section 113 as if it were defined as a 93.27 state employer under that section. 93.28 [EFFECTIVE DATE.] This section is effective July 1, 2003. 93.29 Sec. 115. [GAMBLING CONTROL; FEE TRANSITION.] 93.30 Effective July 1, 2003, all licensees regulated by the 93.31 gambling control board must begin paying the applicable fees 93.32 under Minnesota Statutes, sections 349.16 to 349.165. The 93.33 gambling control board shall provide a onetime, prorated credit 93.34 against these fees to licensees who paid for licenses before 93.35 July 1, 2003, that were to extend beyond July 1, 2003. 93.36 Sec. 116. [CARRYFORWARD.] 94.1 Notwithstanding Minnesota Statutes, section 16A.28, or 94.2 other law to the contrary, funds encumbered by the judicial or 94.3 executive branch for severance costs; unemployment compensation 94.4 costs; and health, dental, and life insurance continuation costs 94.5 resulting from state employee layoffs during the fiscal year 94.6 ending June 30, 2003, may be carried forward and may be spent 94.7 until January 1, 2004. 94.8 Sec. 117. [VACATION LIMIT.] 94.9 A state employee who takes voluntary unpaid leave of 94.10 absence during the biennium ending June 30, 2005, must be 94.11 allowed to accrue a vacation leave balance up to at least 300 94.12 hours through June 30, 2005. 94.13 Sec. 118. [GAMING STUDY.] 94.14 The director of the state lottery shall contract with an 94.15 independent entity to perform an analysis of the economic 94.16 effects of a gaming facility in the metropolitan area on 94.17 existing tribal gaming facilities located in or within 100 miles 94.18 of the metropolitan area. 94.19 Sec. 119. [LCC; LEAVE WITHOUT PAY.] 94.20 (a) If the legislative coordinating commission requires 94.21 employees under its jurisdiction to take temporary leave without 94.22 pay during the biennium ending June 30, 2005, the first 80 hours 94.23 of leave without pay in fiscal year 2004 and the first 80 hours 94.24 of leave without pay in fiscal year 2005 are governed by this 94.25 section. The commission must permit employees taking this leave 94.26 to continue accruing vacation and sick leave, be eligible for 94.27 paid holidays and insurance benefits, accrue seniority, and 94.28 accrue service credit and credited salary in state retirement 94.29 plans permitting service credits for authorized leaves of 94.30 absence as if the employee had actually been employed during the 94.31 time of the leave. The commission may make the employer 94.32 contribution to the employee's retirement plan if the employee 94.33 participates in a defined contribution plan. If the leave 94.34 without pay is for one full pay period or longer, any holiday 94.35 pay shall be included in the first payroll warrant after return 94.36 from the leave. Managers must attempt to schedule leaves to 95.1 meet the needs of employees and the need to continue efficient 95.2 operation of their offices. 95.3 (b) Notwithstanding Minnesota Statutes, section 43A.18, 95.4 subdivisions 2 and 3, the legislative coordinating commission 95.5 may require employees in the office of the legislative auditor 95.6 whose terms and conditions of employment are determined through 95.7 the commissioner and managerial compensation plans to take leave 95.8 without pay as described in paragraph (a). 95.9 Sec. 120. [OFFICIAL PUBLICATION STUDY.] 95.10 Representatives of local public corporations, as defined in 95.11 Minnesota Statutes, chapter 331A, must meet with representatives 95.12 of qualified newspapers and report to the legislature by January 95.13 15, 2004, on alternative means of official publication for local 95.14 public corporations. 95.15 Sec. 121. [TRAINING SERVICES.] 95.16 During the biennium ending June 30, 2005, state executive 95.17 agencies must consider using services provided by the government 95.18 training service before contracting with other outside vendors 95.19 for similar services. 95.20 Sec. 122. [REVISOR'S INSTRUCTIONS.] 95.21 (a) In the next and subsequent editions of Minnesota 95.22 Statutes, the revisor of statutes shall replace the terms 95.23 "commissioner of employee relations" and "commissioner" with 95.24 "state auditor" in sections 471.991 to 471.999. In sections 95.25 affected by this instruction, the revisor may make changes 95.26 necessary to correct the cross-references, punctuation, grammar, 95.27 or structure of the remaining text and preserve its meaning. 95.28 (b) In the next and subsequent editions of Minnesota Rules, 95.29 chapter 3920, the revisor of statutes shall replace the terms 95.30 "department of employee relations" and "department" with "state 95.31 auditor." The revisor shall replace the address listed in 95.32 Minnesota Rules, part 3920.0100, subpart 11, with "525 Park 95.33 Street, Suite 400, Saint Paul, Minnesota 55103." In parts 95.34 affected by this instruction, the revisor may make changes 95.35 necessary to correct the cross-references, punctuation, grammar, 95.36 or structure of the remaining text and preserve its meaning. 96.1 Sec. 123. [REPEALER.] 96.2 (a) Minnesota Statutes 2002, sections 3.305, subdivision 5; 96.3 3.9222; 3A.11; 4A.055; 6.77; 16A.151, subdivision 5; 16A.87; 96.4 43A.04, subdivision 10; 43A.17, subdivision 9; 149A.97, 96.5 subdivision 8; 163.10; 240A.08; and 306.97, are repealed. 96.6 (b) Minnesota Rules, part 1950.1070, is repealed effective 96.7 July 1, 2004. 96.8 (c) Minnesota Statutes 2002, sections 12.221, subdivision 96.9 5; 16B.50; 16C.07; and 43A.047, are repealed effective the day 96.10 following final enactment. 96.11 (d) Minnesota Statutes 2002, section 3.971, subdivision 8, 96.12 is repealed effective July 1, 2004. 96.13 ARTICLE 3 96.14 LINKED BINGO 96.15 Section 1. Minnesota Statutes 2002, section 349.12, 96.16 subdivision 4, is amended to read: 96.17 Subd. 4. [BINGO.] "Bingo" means a game where each player 96.18 has a bingo hard card or bingo paper sheet, for which a 96.19 consideration has been paid, and played in accordance with this 96.20 chapter and with rules of the board for the conduct of 96.21 bingo. Bingo also includes a linked bingo game. 96.22 Sec. 2. Minnesota Statutes 2002, section 349.12, 96.23 subdivision 18, is amended to read: 96.24 Subd. 18. [GAMBLING EQUIPMENT.] "Gambling equipment" 96.25 means: bingo hard cards or paper sheets, linked bingo paper 96.26 sheets, devices for selecting bingo numbers, pull-tabs, jar 96.27 tickets, paddlewheels, paddlewheel tables, paddletickets, 96.28 paddleticket cards, tipboards, tipboard tickets, and pull-tab 96.29 dispensing devices. 96.30 Sec. 3. Minnesota Statutes 2002, section 349.12, is 96.31 amended by adding a subdivision to read: 96.32 Subd. 25a. [LINKED BINGO GAME.] "Linked bingo game" means 96.33 a bingo game played at two or more locations where licensed 96.34 organizations are authorized to conduct bingo, where there is a 96.35 common prize pool and a common selection of numbers or symbols 96.36 conducted at one location, and where the results of the 97.1 selection are transmitted to all participating locations by 97.2 satellite, telephone, or other means by a linked bingo game 97.3 provider. 97.4 Sec. 4. Minnesota Statutes 2002, section 349.12, is 97.5 amended by adding a subdivision to read: 97.6 Subd. 25b. [LINKED BINGO GAME PROVIDER.] "Linked bingo 97.7 game provider" means any person who provides the means to link 97.8 bingo prizes in a linked bingo game, who provides linked bingo 97.9 paper sheets to the participating organizations, who provides 97.10 linked bingo prize management, and who provides the linked bingo 97.11 game system. 97.12 Sec. 5. Minnesota Statutes 2002, section 349.12, is 97.13 amended by adding a subdivision to read: 97.14 Subd. 25c. [LINKED BINGO GAME SYSTEM.] "Linked bingo game 97.15 system" means the equipment used by the linked bingo provider to 97.16 conduct, transmit, and track a linked bingo game. The system 97.17 must be approved by the board before its use in this state and 97.18 it must have dial-up or other capability to permit the board to 97.19 monitor its operation remotely. 97.20 Sec. 6. Minnesota Statutes 2002, section 349.12, is 97.21 amended by adding a subdivision to read: 97.22 Subd. 25d. [LINKED BINGO PRIZE POOL.] "Linked bingo prize 97.23 pool" means the total of all prize money that each participating 97.24 organization has contributed to the linked bingo game prize. No 97.25 participating organization may contribute more than $300 per 97.26 bingo occasion to a linked bingo prize pool. 97.27 Sec. 7. Minnesota Statutes 2002, section 349.151, 97.28 subdivision 4, is amended to read: 97.29 Subd. 4. [POWERS AND DUTIES.] (a) The board has the 97.30 following powers and duties: 97.31 (1) to regulate lawful gambling to ensure it is conducted 97.32 in the public interest; 97.33 (2) to issue licenses to organizations, distributors, bingo 97.34 halls, manufacturers, linked bingo game providers, and gambling 97.35 managers; 97.36 (3) to collect and deposit license, permit, and 98.1 registration fees due under this chapter; 98.2 (4) to receive reports required by this chapter and inspect 98.3 all premises, records, books, and other documents of 98.4 organizations, distributors, manufacturers, linked bingo game 98.5 providers, and bingo halls to insure compliance with all 98.6 applicable laws and rules; 98.7 (5) to make rules authorized by this chapter; 98.8 (6) to register gambling equipment and issue registration 98.9 stamps; 98.10 (7) to provide by rule for the mandatory posting by 98.11 organizations conducting lawful gambling of rules of play and 98.12 the odds and/or house percentage on each form of lawful 98.13 gambling; 98.14 (8) to report annually to the governor and legislature on 98.15 its activities and on recommended changes in the laws governing 98.16 gambling; 98.17 (9) to impose civil penalties of not more than $500 per 98.18 violation on organizations, distributors, employees eligible to 98.19 make sales on behalf of a distributor, manufacturers, bingo 98.20 halls, linked bingo game providers, and gambling managers for 98.21 failure to comply with any provision of this chapter or any rule 98.22 or order of the board; 98.23 (10) to issue premises permits to organizations licensed to 98.24 conduct lawful gambling; 98.25 (11) to delegate to the director the authority to issue or 98.26 deny license and premises permit applications and renewals under 98.27 criteria established by the board; 98.28 (12) to suspend or revoke licenses and premises permits of 98.29 organizations, distributors, manufacturers, bingo halls, linked 98.30 bingo game providers, or gambling managers as provided in this 98.31 chapter; 98.32 (13) to register employees of organizations licensed to 98.33 conduct lawful gambling; 98.34 (14) to require fingerprints from persons determined by 98.35 board rule to be subject to fingerprinting; 98.36 (15) to delegate to a compliance review group of the board 99.1 the authority to investigate alleged violations, issue consent 99.2 orders, and initiate contested cases on behalf of the board; 99.3 (16) to order organizations, distributors, manufacturers, 99.4 bingo halls, linked bingo game providers, and gambling managers 99.5 to take corrective actions; and 99.6 (17) to take all necessary steps to ensure the integrity of 99.7 and public confidence in lawful gambling. 99.8 (b) The board, or director if authorized to act on behalf 99.9 of the board, may by citation assess any organization, 99.10 distributor, employee eligible to make sales on behalf of a 99.11 distributor, manufacturer, bingo hall licensee, linked bingo 99.12 game provider, or gambling manager a civil penalty of not more 99.13 than $500 per violation for a failure to comply with any 99.14 provision of this chapter or any rule adopted or order issued by 99.15 the board. Any organization, distributor, bingo hall licensee, 99.16 gambling manager, linked bingo game provider, or manufacturer 99.17 assessed a civil penalty under this paragraph may request a 99.18 hearing before the board. Appeals of citations imposing a civil 99.19 penalty are not subject to the provisions of the Administrative 99.20 Procedure Act. 99.21 (c) All fees and penalties received by the board must be 99.22 deposited in the general fund. 99.23 Sec. 8. Minnesota Statutes 2002, section 349.153, is 99.24 amended to read: 99.25 349.153 [CONFLICT OF INTEREST.] 99.26 (a) A person may not serve on the board, be the director, 99.27 or be an employee of the board who has an interest in any 99.28 corporation, association, limited liability company, or 99.29 partnership that is licensed by the board as a distributor, 99.30 manufacturer, linked bingo game provider, orabingo hall under 99.31 section 349.164. 99.32 (b) A member of the board, the director, or an employee of 99.33 the board may not accept employment with, receive compensation 99.34 directly or indirectly from, or enter into a contractual 99.35 relationship with an organization that conducts lawful gambling, 99.36 a distributor, a linked bingo game provider, a bingo hall, or a 100.1 manufacturer while employed with or a member of the board or 100.2 within one year after terminating employment with or leaving the 100.3 board. 100.4 (c) A distributor, bingo hall, manufacturer, linked bingo 100.5 game provider, or organization licensed to conduct lawful 100.6 gambling may not hire a former employee, director, or member of 100.7 the gambling control board for one year after the employee, 100.8 director, or member has terminated employment with or left the 100.9 gambling control board. 100.10 Sec. 9. Minnesota Statutes 2002, section 349.155, 100.11 subdivision 3, is amended to read: 100.12 Subd. 3. [MANDATORY DISQUALIFICATIONS.] (a) In the case of 100.13 licenses for manufacturers, distributors, bingo halls, linked 100.14 bingo game providers, and gambling managers, the board may not 100.15 issue or renew a license under this chapter, and shall revoke a 100.16 license under this chapter, if the applicant or licensee, or a 100.17 director, officer, partner, governor, person in a supervisory or 100.18 management position of the applicant or licensee, or an employee 100.19 eligible to make sales on behalf of the applicant or licensee: 100.20 (1) has ever been convicted of a felony or a crime 100.21 involving gambling; 100.22 (2) has ever been convicted of (i) assault, (ii) a criminal 100.23 violation involving the use of a firearm, or (iii) making 100.24 terroristic threats; 100.25 (3) is or has ever been connected with or engaged in an 100.26 illegal business; 100.27 (4) owes $500 or more in delinquent taxes as defined in 100.28 section 270.72; 100.29 (5) had a sales and use tax permit revoked by the 100.30 commissioner of revenue within the past two years; or 100.31 (6) after demand, has not filed tax returns required by the 100.32 commissioner of revenue. The board may deny or refuse to renew 100.33 a license under this chapter, and may revoke a license under 100.34 this chapter, if any of the conditions in this paragraph are 100.35 applicable to an affiliate or direct or indirect holder of more 100.36 than a five percent financial interest in the applicant or 101.1 licensee. 101.2 (b) In the case of licenses for organizations, the board 101.3 may not issue or renew a license under this chapter, and shall 101.4 revoke a license under this chapter, if the organization, or an 101.5 officer or member of the governing body of the organization: 101.6 (1) has been convicted of a felony or gross misdemeanor 101.7 within the five years before the issuance or renewal of the 101.8 license; 101.9 (2) has ever been convicted of a crime involving gambling; 101.10 or 101.11 (3) has had a license issued by the board or director 101.12 permanently revoked for violation of law or board rule. 101.13 Sec. 10. Minnesota Statutes 2002, section 349.163, 101.14 subdivision 3, is amended to read: 101.15 Subd. 3. [PROHIBITED SALES.] (a) A manufacturer may not: 101.16 (1) sell gambling equipment for use or resale within the 101.17 state to any person not licensed as a distributor, except that 101.18 gambling equipment used exclusively in a linked bingo game may 101.19 be sold to a licensed linked bingo game provider; or 101.20 (2) sell gambling equipment to a distributor in this state 101.21 that has the same serial number as another item of gambling 101.22 equipment of the same type that is sold by that manufacturer for 101.23 use or resale in this state. 101.24 (b) A manufacturer, affiliate of a manufacturer, or person 101.25 acting as a representative or agent of a manufacturer may not 101.26 provide a lessor of gambling premises or an appointed official 101.27 any compensation, gift, gratuity, premium, contribution, or 101.28 other thing of value. 101.29 (c) A manufacturer may not sell or otherwise provide a 101.30 pull-tab or tipboard deal with the symbol required by 101.31 subdivision 5, paragraph (h), imprinted on the flare to any 101.32 person other than a licensed distributor unless the manufacturer 101.33 first renders the symbol permanently invisible. 101.34 Sec. 11. [349.1635] [LINKED BINGO GAME PROVIDER LICENSE.] 101.35 Subdivision 1. [LICENSE REQUIRED.] No person may do any of 101.36 the following without having first obtained a license from the 102.1 board: 102.2 (1) provide the means to link prizes in a linked bingo 102.3 game; 102.4 (2) provide linked bingo game prize management; 102.5 (3) provide the linked bingo game system; or 102.6 (4) provide linked bingo game paper sheets to an 102.7 organization. 102.8 Subd. 2. [LICENSE APPLICATION.] The board may issue a 102.9 license to a linked bingo game provider who meets the 102.10 qualifications of this chapter and the rules adopted by the 102.11 board. The application shall be on a form prescribed by the 102.12 board. The license is valid for two years and the fee for a 102.13 linked bingo game provider license is $5,000 per year. 102.14 Subd. 3. [ATTACHMENTS TO APPLICATION.] An applicant for a 102.15 linked bingo game provider license must attach to its 102.16 application: 102.17 (1) evidence of a bond in the principal amount of $250,000 102.18 payable to the state of Minnesota conditioned on the payment of 102.19 all linked bingo game prizes and any other money due and payable 102.20 under this chapter; 102.21 (2) detailed plans and specifications for the operation of 102.22 the linked bingo game and the linked bingo game system; and 102.23 (3) any other information required by the board by rule. 102.24 Subd. 4. [PROHIBITION.] (a) Except for services associated 102.25 exclusively with a linked bingo game, a linked bingo game 102.26 provider may not participate or assist in the conduct of lawful 102.27 gambling by an organization. No linked bingo game provider may: 102.28 (1) also be licensed as a bingo hall or hold any financial 102.29 or managerial interest in a bingo hall; 102.30 (2) also be licensed as a distributor or hold any financial 102.31 or managerial interest in a distributor; 102.32 (3) sell or lease linked bingo game equipment to any person 102.33 not licensed as an organization; 102.34 (4) purchase gambling equipment to be used exclusively in a 102.35 linked bingo game from any person not licensed as a manufacturer 102.36 under section 349.163; or 103.1 (5) provide an organization, a lessor of gambling premises, 103.2 or an appointed official any compensation, gift, gratuity, 103.3 premium, or contribution. 103.4 (b) Employees of the board and the division of alcohol and 103.5 gambling enforcement may inspect the books, records, inventory, 103.6 and business premises of a licensed linked bingo game provider 103.7 without notice during the normal business hours of the linked 103.8 bingo game provider. The board may charge a linked bingo game 103.9 provider for the actual cost of conducting scheduled or 103.10 unscheduled inspections of the licensee's facilities. 103.11 Sec. 12. Minnesota Statutes 2002, section 349.166, 103.12 subdivision 1, is amended to read: 103.13 Subdivision 1. [EXCLUSIONS.] (a) Bingo, with the exception 103.14 of linked bingo games, may be conducted without a license and 103.15 without complying with sections 349.168, subdivisions 1 and 2; 103.16 349.17, subdivisions 1, 4, and 5; 349.18, subdivision 1; and 103.17 349.19, if it is conducted: 103.18 (1) by an organization in connection with a county fair, 103.19 the state fair, or a civic celebration and is not conducted for 103.20 more than 12 consecutive days and is limited to no more than 103.21 four separate applications for activities applied for and 103.22 approved in a calendar year; or 103.23 (2) by an organization that conducts four or fewer bingo 103.24 occasions in a calendar year. 103.25 An organization that holds a license to conduct lawful 103.26 gambling under this chapter may not conduct bingo under this 103.27 subdivision. 103.28 (b) Bingo may be conducted within a nursing home or a 103.29 senior citizen housing project or by a senior citizen 103.30 organization if the prizes for a single bingo game do not exceed 103.31 $10, total prizes awarded at a single bingo occasion do not 103.32 exceed $200, no more than two bingo occasions are held by the 103.33 organization or at the facility each week, only members of the 103.34 organization or residents of the nursing home or housing project 103.35 are allowed to play in a bingo game, no compensation is paid for 103.36 any persons who conduct the bingo, and a manager is appointed to 104.1 supervise the bingo. Bingo conducted under this paragraph is 104.2 exempt from sections 349.11 to 349.23, and the board may not 104.3 require an organization that conducts bingo under this 104.4 paragraph, or the manager who supervises the bingo, to register 104.5 or file a report with the board. The gross receipts from bingo 104.6 conducted under the limitations of this subdivision are exempt 104.7 from taxation under chapter 297A. 104.8 (c) Raffles may be conducted by an organization without a 104.9 license and without complying with sections 349.154 to 349.165 104.10 and 349.167 to 349.213 if the value of all raffle prizes awarded 104.11 by the organization in a calendar year does not exceed $750. 104.12 (d) Except as provided in paragraph (b), the organization 104.13 must maintain all required records of excluded gambling activity 104.14 for 3-1/2 years. 104.15 Sec. 13. Minnesota Statutes 2002, section 349.166, 104.16 subdivision 2, is amended to read: 104.17 Subd. 2. [EXEMPTIONS.] (a) Lawful gambling, with the 104.18 exception of linked bingo games, may be conducted by an 104.19 organization without a license and without complying with 104.20 sections 349.168, subdivisions 1 and 2; 349.17, subdivisions 4 104.21 and 5; 349.18, subdivision 1; and 349.19 if: 104.22 (1) the organization conducts lawful gambling on five or 104.23 fewer days in a calendar year; 104.24 (2) the organization does not award more than $50,000 in 104.25 prizes for lawful gambling in a calendar year; 104.26 (3) the organization pays a fee of $25 to the board, 104.27 notifies the board in writing not less than 30 days before each 104.28 lawful gambling occasion of the date and location of the 104.29 occasion, or 60 days for an occasion held in the case of a city 104.30 of the first class, the types of lawful gambling to be 104.31 conducted, the prizes to be awarded, and receives an exemption 104.32 identification number; 104.33 (4) the organization notifies the local government unit 30 104.34 days before the lawful gambling occasion, or 60 days for an 104.35 occasion held in a city of the first class; 104.36 (5) the organization purchases all gambling equipment and 105.1 supplies from a licensed distributor; and 105.2 (6) the organization reports to the board, on a single-page 105.3 form prescribed by the board, within 30 days of each gambling 105.4 occasion, the gross receipts, prizes, expenses, expenditures of 105.5 net profits from the occasion, and the identification of the 105.6 licensed distributor from whom all gambling equipment was 105.7 purchased. 105.8 (b) If the organization fails to file a timely report as 105.9 required by paragraph (a), clause (3) or (6), the board shall 105.10 not issue any authorization, license, or permit to the 105.11 organization to conduct lawful gambling on an exempt, excluded, 105.12 or licensed basis until the report has been filed. 105.13 (c) Merchandise prizes must be valued at their fair market 105.14 value. 105.15 (d) Unused pull-tab and tipboard deals must be returned to 105.16 the distributor within seven working days after the end of the 105.17 lawful gambling occasion. The distributor must accept and pay a 105.18 refund for all returns of unopened and undamaged deals returned 105.19 under this paragraph. 105.20 (e) An organization that is exempt from taxation on 105.21 purchases of pull-tabs and tipboards under section 297E.02, 105.22 subdivision 4, paragraph (b), clause (4), must return to the 105.23 distributor any tipboard or pull-tab deal no part of which is 105.24 used at the lawful gambling occasion for which it was purchased 105.25 by the organization. 105.26 (f) The organization must maintain all required records of 105.27 exempt gambling activity for 3-1/2 years. 105.28 Sec. 14. Minnesota Statutes 2002, section 349.167, 105.29 subdivision 6, is amended to read: 105.30 Subd. 6. [RECRUITMENT OF GAMBLING MANAGERS.] No 105.31 organization may seek or accept assistance from a manufacturer 105.32or, distributor, or linked bingo game provider, or a 105.33 representative, agent, affiliate, or employee of a manufacturer 105.34or, distributor, or linked bingo game provider, in identifying 105.35 or recruiting candidates to become a gambling manager for the 105.36 organization. 106.1 Sec. 15. Minnesota Statutes 2002, section 349.17, 106.2 subdivision 3, is amended to read: 106.3 Subd. 3. [WINNERS.] Each bingo winner must be determined 106.4 and every prize shall be awarded and delivered the same day on 106.5 which the bingo occasion is conducted, except that prizes won in 106.6 a linked bingo game must be delivered within three business days 106.7 of the day on which the occasion was conducted. 106.8 Sec. 16. Minnesota Statutes 2002, section 349.17, 106.9 subdivision 6, is amended to read: 106.10 Subd. 6. [CONDUCT OF BINGO.] (a) Each bingo hard card and 106.11 paper sheets must have five horizontal rows of spaces with each 106.12 row except one having five numbers. The center row must have 106.13 four numbers and the center space marked "free." Each column 106.14 must have one of the letters B-I-N-G-O in order at the top. 106.15 Bingo paper sheets may also have numbers that are not preprinted 106.16 but are filled in by players. 106.17 (b) A game of bingo begins with the first letter and number 106.18 called. Each player must cover or mark with a liquid dauber the 106.19 numbers when bingo balls, similarly numbered, are randomly 106.20 drawn, announced, and displayed to the players, either manually 106.21 or with a flashboard and monitor. The game is won when a player 106.22 has covered or marked a previously designated arrangement of 106.23 numbers on the card or sheet and declared bingo. The game is 106.24 completed when a winning card or sheet is verified and a prize 106.25 awarded, except that prizes won in linked bingo games may be 106.26 awarded pursuant to subdivision 3. 106.27 Sec. 17. Minnesota Statutes 2002, section 349.17, 106.28 subdivision 7, is amended to read: 106.29 Subd. 7. [NOON HOUR BINGO.] Notwithstanding subdivisions 1 106.30 and 3, an organization may conduct bingo subject to the 106.31 following restrictions: 106.32 (1) the bingo is conducted only between the hours of 11:00 106.33 a.m. and 2:00 p.m.; 106.34 (2) the bingo is conducted at a site the organization owns 106.35 or leases and which has a license for the sale of intoxicating 106.36 beverages on the premises under chapter 340A; 107.1 (3) the bingo is limited to one progressive bingo game per 107.2 site as defined by section 349.211, subdivision 2; 107.3 (4) the bingo is conducted using only bingo paper sheets; 107.4and107.5 (5) if the premises are leased, the rent may not exceed $25 107.6 per day for each day bingo is conducted; and 107.7 (6) linked bingo games may not be conducted at a noon hour 107.8 bingo occasion. 107.9 Sec. 18. Minnesota Statutes 2002, section 349.17, is 107.10 amended by adding a subdivision to read: 107.11 Subd. 8. [LINKED BINGO GAMES.] (a) A licensed organization 107.12 may conduct or participate in a linked bingo game in association 107.13 with one or more other licensed organizations. 107.14 (b) Each participating licensed organization shall 107.15 contribute to each prize awarded in a linked bingo game in an 107.16 amount not to exceed $300 per occasion. 107.17 (c) The board may adopt rules to: 107.18 (1) specify the manner in which a linked bingo game must be 107.19 played and how the linked bingo prizes must be awarded; 107.20 (2) specify the records to be maintained by a linked bingo 107.21 game provider; 107.22 (3) require the submission of periodic reports by the 107.23 linked bingo game provider and specify the content of the 107.24 reports; 107.25 (4) establish the qualifications required to be licensed as 107.26 a linked bingo game provider; and 107.27 (5) any other matter involving the operation of a linked 107.28 bingo game. 107.29 Sec. 19. Minnesota Statutes 2002, section 349.18, 107.30 subdivision 1, is amended to read: 107.31 Subdivision 1. [LEASE OR OWNERSHIP REQUIRED.] (a) An 107.32 organization may conduct lawful gambling only on premises it 107.33 owns or leases. Leases must be on a form prescribed by the 107.34 board. Except for leases entered into before August 1, 1994, 107.35 the term of the lease may not begin before the effective date of 107.36 the premises permit and must expire on the same day that the 108.1 premises permit expires. Copies of all leases must be made 108.2 available to employees of the board and the division of alcohol 108.3 and gambling enforcement on request. A lease may not provide 108.4 for payments determined directly or indirectly by the receipts 108.5 or profits from lawful gambling. The board may prescribe by 108.6 rule limits on the amount of rent which an organization may pay 108.7 to a lessor for premises leased for lawful gambling provided 108.8 that no rule of the board may prescribe a limit of less than 108.9 $1,000 per month on rent paid for premises used for lawful 108.10 gambling other than bingo. Any rule adopted by the board 108.11 limiting the amount of rent to be paid may only be effective for 108.12 leases entered into, or renewed, after the effective date of the 108.13 rule. 108.14 (b) No person, distributor, manufacturer, lessor, linked 108.15 bingo game provider, or organization other than the licensed 108.16 organization leasing the space may conduct any activity other 108.17 than the sale or serving of food and beverages on the leased 108.18 premises during times when lawful gambling is being conducted on 108.19 the premises. 108.20 (c) At a site where the leased premises consists of an area 108.21 on or behind a bar at which alcoholic beverages are sold and 108.22 employees of the lessor are employed by the organization as 108.23 pull-tab sellers at the site, pull-tabs and tipboard tickets may 108.24 be sold and redeemed by those employees at any place on or 108.25 behind the bar, but the tipboards and receptacles for pull-tabs 108.26 and cash drawers for lawful gambling receipts must be maintained 108.27 only within the leased premises. 108.28 (d) Employees of a lessor may participate in lawful 108.29 gambling on the premises provided (1) if pull-tabs or tipboards 108.30 are sold, the organization voluntarily posts, or is required to 108.31 post, the major prizes as specified in section 349.172; and (2) 108.32 any employee of the lessor participating in lawful gambling is 108.33 not a gambling employee for the organization conducting lawful 108.34 gambling on the premises. 108.35 (e) A gambling employee may purchase pull-tabs at the site 108.36 of the employee's place of employment provided: 109.1 (1) the organization voluntarily posts, or is required to 109.2 post, the major prizes for pull-tab or tipboard games as 109.3 specified in section 349.172; and 109.4 (2) the employee is not involved in the sale of pull-tabs 109.5 at that site. 109.6 (f) At a leased site where an organization uses a 109.7 paddlewheel consisting of 30 numbers or less or a tipboard 109.8 consisting of 30 tickets or less, tickets may be sold throughout 109.9 the permitted premises, but winning tickets must be redeemed, 109.10 the paddlewheel must be located, and the tipboard seal must be 109.11 opened within the leased premises. 109.12 Sec. 20. Minnesota Statutes 2002, section 349.19, is 109.13 amended by adding a subdivision to read: 109.14 Subd. 2b. [LINKED BINGO PRIZE POOL ACCOUNT.] A licensed 109.15 organization participating in a linked bingo game must maintain 109.16 a separate account in a bank for the deposit of the 109.17 organization's portion of the linked bingo game prize pool. The 109.18 name of the bank, the account number, and authorization for 109.19 electronic funds transfer must be provided by the organization 109.20 to the linked bingo game provider. Deposits must be made into 109.21 the account by the organization as designated by the linked 109.22 bingo game provider. Money in the account must be available to 109.23 the linked bingo game provider at all times by electronic funds 109.24 transfer, unless the linked bingo game provider agrees to the 109.25 transfer of the funds by other means. 109.26 Sec. 21. Minnesota Statutes 2002, section 349.191, 109.27 subdivision 1, is amended to read: 109.28 Subdivision 1. [CREDIT RESTRICTION.] A manufacturer may 109.29 not offer or extend to a distributor, a linked bingo game 109.30 provider may not offer or extend to an organization, and a 109.31 distributor may not offer or extend to an organization, credit 109.32 for a period of more than 30 days for the sale or lease of any 109.33 gambling equipment. No right of action exists for the 109.34 collection of any claim based on credit prohibited by this 109.35 subdivision. The 30-day period allowed by this subdivision 109.36 begins with the day immediately following the day of invoice and 110.1 includes all successive days, including Sundays and holidays, to 110.2 and including the 30th successive day. 110.3 Sec. 22. Minnesota Statutes 2002, section 349.191, 110.4 subdivision 1a, is amended to read: 110.5 Subd. 1a. [CREDIT AND SALES TO DELINQUENT ORGANIZATIONS.] 110.6 (a) If a distributor or linked bingo game provider does not 110.7 receive payment in full from an organization within 35 days of 110.8 the day immediately following the date of the invoice, the 110.9 distributor or linked bingo game provider must notify the board 110.10 in writing of the delinquency on the next business day. 110.11 (b) If a distributor or linked bingo game provider who has 110.12 notified the board under paragraph (a) has not received payment 110.13 in full from the organization within 60 days of the notification 110.14 under paragraph (a), the distributor or linked bingo game 110.15 provider must notify the board of the continuing delinquency. 110.16 (c) On receipt of a notice under paragraph (a), the board 110.17 shall order all distributors and linked bingo game providers 110.18 that until further notice from the board, they may sell gambling 110.19 equipment to the delinquent organizations only on a cash basis 110.20 with no credit extended. On receipt of a notice under paragraph 110.21 (b), the board shall order all distributors and linked bingo 110.22 game providers not to sell any gambling equipment to the 110.23 delinquent organization. 110.24 (d) No distributor or linked bingo game provider may extend 110.25 credit or sell gambling equipment to an organization in 110.26 violation of an order under paragraph (c) until the board has 110.27 authorized such credit or sale. 110.28 Sec. 23. Minnesota Statutes 2002, section 349.211, 110.29 subdivision 1, is amended to read: 110.30 Subdivision 1. [BINGO.] Except as provided in 110.31subdivisionsubdivisions 1a and 2, prizes for a single bingo 110.32 game may not exceed $200 except prizes for a cover-all game, 110.33 which may exceed $200 if the aggregate value of all cover-all 110.34 prizes in a bingo occasion does not exceed $1,000. Total prizes 110.35 awarded at a bingo occasion may not exceed $2,500, unless a 110.36 cover-all game is played in which case the limit is $3,500. A 111.1 prize may be determined based on the value of the bingo packet 111.2 sold to the player. For purposes of this subdivision, a 111.3 cover-all game is one in which a player must cover all spaces 111.4 except a single free space to win. 111.5 Sec. 24. Minnesota Statutes 2002, section 349.211, is 111.6 amended by adding a subdivision to read: 111.7 Subd. 1a. [LINKED BINGO PRIZES.] Prizes for a linked bingo 111.8 game shall be limited as follows: 111.9 (1) no organization may contribute more than $300 per 111.10 occasion to a linked bingo game prize pool; and 111.11 (2) if an organization contributes to a linked bingo game 111.12 prize pool, the organization's aggregate value of cover-all 111.13 prizes available during the bingo occasion must be reduced by 111.14 the amount contributed to the linked bingo game prize pool. 111.15 ARTICLE 4 111.16 TIPBOARDS 111.17 Section 1. Minnesota Statutes 2002, section 349.12, 111.18 subdivision 34, is amended to read: 111.19 Subd. 34. [TIPBOARD.] "Tipboard" means a board, placard or 111.20 other device containing a seal that conceals the winning number 111.21 or symbol, and that serves as the game flare for a tipboard 111.22 game, or a board or placard that is not required to contain a 111.23 seal, but for which the winning numbers are determined in whole 111.24 or in part by the outcome of one or more professional sporting 111.25 events. 111.26 Sec. 2. Minnesota Statutes 2002, section 349.151, is 111.27 amended by adding a subdivision to read: 111.28 Subd. 4c. [RULES.] The board may adopt rules for the 111.29 conduct of tipboards for which the winning numbers are 111.30 determined in whole or in part by the outcome of one or more 111.31 professional sporting events. The rules must provide for 111.32 operation procedures, internal control standards, posted 111.33 information, records, and reports. The rules must provide for 111.34 the award of prizes, method of payout, wagers, determination of 111.35 winners, and the specifications of these tipboards. Cash or 111.36 merchandise prizes may be awarded in these tipboards. 112.1 Sec. 3. Minnesota Statutes 2002, section 349.1711, 112.2 subdivision 2, is amended to read: 112.3 Subd. 2. [DETERMINATION OF WINNERS.] When the 112.4 predesignated numbers or symbols have all been purchased, or all 112.5 of the tipboard tickets for that game have been sold, the seal 112.6 must be removed to reveal a number or symbol that determines 112.7 which of the predesignated numbers or symbols is the winning 112.8 number or symbol. A tipboard may also contain consolation 112.9 winners, or winning chances that are determined in whole or in 112.10 part by the outcome of one or more professional sporting events, 112.11 that need not be determined by the use of the seal. 112.12 Sec. 4. Minnesota Statutes 2002, section 349.211, is 112.13 amended by adding a subdivision to read: 112.14 Subd. 2d. [SPORTS BOARDS.] The maximum prize which may be 112.15 awarded for a tipboard for which the winning numbers are 112.16 determined in whole or in part by the outcome of one or more 112.17 professional sporting events is $500. A chance for such a board 112.18 may not be sold for more than $10. 112.19 Sec. 5. [REPEALER.] 112.20 Minnesota Statutes 2002, section 349.2127, subdivision 9, 112.21 is repealed.