Minnesota Legislature
HF 749
2nd 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; modifying 1.11 provisions relating to state debt collection; 1.12 authorizing rulemaking; providing for a license fee 1.13 for fireworks retailers; requiring studies; modifying 1.14 lawful gambling provisions; amending Minnesota 1.15 Statutes 2002, sections 3.099, subdivision 3; 3.885, 1.16 subdivision 1; 3.971, subdivision 2; 6.48; 6.49; 6.54; 1.17 6.55; 6.64; 6.65; 6.66; 6.67; 6.68, subdivision 1; 1.18 6.70; 6.71; 6.74; 8.06; 10A.02, by adding 1.19 subdivisions; 10A.04, subdivisions 2, 4, by adding a 1.20 subdivision; 10A.09, subdivision 6, by adding a 1.21 subdivision; 10A.31, subdivision 4; 14.48, by adding a 1.22 subdivision; 15.50, subdivision 1; 16A.11, subdivision 1.23 3; 16A.17, by adding a subdivision; 16A.40; 16A.501; 1.24 16A.642, subdivision 1; 16B.24, subdivision 5; 16B.35, 1.25 subdivision 1; 16B.465, subdivisions 1a, 7; 16B.47; 1.26 16B.48, subdivision 2; 16B.49; 16B.58, by adding a 1.27 subdivision; 16C.05, subdivision 2; 16C.08, 1.28 subdivisions 2, 3, 4, by adding a subdivision; 16C.09; 1.29 16C.10, subdivision 7; 16D.08, subdivision 2; 16D.10; 1.30 16E.01, subdivision 3; 16E.07, subdivision 9; 16E.09, 1.31 subdivision 1; 69.772, subdivision 2; 115A.929; 1.32 116J.8771; 136F.77, subdivision 3; 179A.03, 1.33 subdivision 7; 192.501, subdivision 2; 197.608; 1.34 240.03; 240.10; 240.15, subdivision 6; 240.155, 1.35 subdivision 1; 240A.03, subdivisions 10, 15; 240A.04; 1.36 240A.06, subdivision 1; 256B.435, subdivision 2a; 1.37 268.186; 270.052; 270.44; 270A.07, subdivision 1; 1.38 306.95; 349.12, subdivisions 4, 18, 25, by adding 1.39 subdivisions; 349.151, subdivisions 4, 4b; 349.153; 1.40 349.155, subdivision 3; 349.16, subdivision 6; 1.41 349.161, subdivisions 1, 4, 5; 349.162, subdivision 1; 1.42 349.163, subdivisions 2, 3, 6; 349.164, subdivision 4; 1.43 349.165, subdivision 3; 349.166, subdivisions 1, 2; 1.44 349.167, subdivision 6; 349.17, subdivisions 3, 6, 7, 1.45 by adding a subdivision; 349.18, subdivision 1; 1.46 349.19, by adding a subdivision; 349.191, subdivisions 2.1 1, 1a; 349.211, subdivision 1, by adding a 2.2 subdivision; 349A.08, subdivision 5; 352D.04, by 2.4 adding a subdivision; 356.611, subdivision 1; 458D.17, 2.5 subdivision 5; 471.696; 471.999; 474A.21; 477A.014, 2.6 subdivision 4; 624.20, subdivision 1; Laws 1998, 2.7 chapter 366, section 80, as amended; proposing coding 2.8 for new law in Minnesota Statutes, chapters 3A; 6; 2.9 10A; 15A; 16C; 43A; 326; 349; repealing Minnesota 2.10 Statutes 2002, sections 3.305, subdivision 5; 3.9222; 2.11 3.971, subdivision 8; 3A.11; 4A.055; 6.77; 12.221, 2.12 subdivision 5; 16A.151, subdivision 5; 16A.87; 16B.50; 2.13 16C.07; 43A.04, subdivision 10; 43A.047; 43A.17, 2.14 subdivision 9; 149A.97, subdivision 8; 163.10; 2.15 240A.08; 306.97; Minnesota 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 2.46 Available for the Year 3.1 Ending June 30 3.2 2004 2005 3.3 Sec. 2. LEGISLATURE 3.4 Subdivision 1. Total 3.5 Appropriation $ 56,426,000 $ 56,427,000 3.6 Summary by Fund 3.7 General 56,298,000 56,299,000 3.8 Health Care Access 128,000 128,000 3.9 The amounts that may be spent from this 3.10 appropriation for each program are 3.11 specified in the following subdivisions. 3.12 Subd. 2. Senate 19,107,000 19,107,000 3.13 Subd. 3. House of 3.14 Representatives 26,135,000 26,136,000 3.15 Subd. 4. Legislative 3.16 Coordinating Commission 11,184,000 11,184,000 3.17 Summary by Fund 3.18 General 11,056,000 11,056,000 3.19 Health Care Access 128,000 128,000 3.20 During the biennium ending June 30, 3.21 2005, the legislative coordinating 3.22 commission, the office of the 3.23 legislative auditor, and the office of 3.24 the revisor of statutes are not subject 3.25 to the limitations in uses of funds 3.26 provided under Minnesota Statutes, 3.27 section 16A.281. 3.28 During the biennium ending June 30, 3.29 2005, a legislative commission or 3.30 subcommittee of the legislative 3.31 coordinating commission may by 3.32 resolution adopt per diem payments for 3.33 members attending commission meetings 3.34 that are less than the payments 3.35 permitted by rules of the house of 3.36 representatives and the senate. 3.37 Sec. 3. GOVERNOR AND 3.38 LIEUTENANT GOVERNOR 3,586,000 3,586,000 3.39 This appropriation is to fund the 3.40 office of the governor and lieutenant 3.41 governor. 3.42 $19,000 the first year and $19,000 the 3.43 second year are for necessary expenses 3.44 in the normal performance of the 3.45 governor's and lieutenant governor's 3.46 duties for which no other reimbursement 3.47 is provided. 3.48 Sec. 4. ATTORNEY GENERAL 21,816,000 21,795,000 3.49 Summary by Fund 3.50 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 4, is amended to read: 28.9 Subd. 4. [APPROPRIATION.](a)The amounts designated by 28.10 individuals for the state elections campaign fund, lessthree28.11 ten percent, are appropriated from the general fund, must be 28.12 transferred and credited to the appropriate account in the state 28.13 elections campaign fund, and are annually appropriated for 28.14 distribution as set forth in subdivisions 5, 5a, 6, and 7. The 28.15 remainingthreeten percent must be kept in the general fund for 28.16 administrative costs. 28.17(b) In addition to the amounts in paragraph (a), $1,500,00028.18for each general election is appropriated from the general fund28.19for transfer to the general account of the state elections28.20campaign fund.28.21 Sec. 30. Minnesota Statutes 2002, section 14.48, is 28.22 amended by adding a subdivision to read: 28.23 Subd. 4. [MANDATORY RETIREMENT.] An administrative law 28.24 judge and compensation judge must retire upon attaining age 70. 28.25 The chief administrative law judge may appoint a retired 28.26 administrative law judge or compensation judge to hear any 28.27 proceeding that is properly assignable to an administrative law 28.28 judge or compensation judge. When a retired administrative law 28.29 judge or compensation judge undertakes this service, the retired 28.30 judge shall receive pay and expenses in the amount payable to 28.31 temporary administrative law judges or compensation judges 28.32 serving under section 14.49. 28.33 [EFFECTIVE DATE.] This section is effective June 30, 2003. 28.34 An administrative law judge or compensation judge who has 28.35 attained the age of 70 on or before that date must retire by 28.36 June 30, 2003. 29.1 Sec. 31. Minnesota Statutes 2002, section 15.50, 29.2 subdivision 1, is amended to read: 29.3 Subdivision 1. [PURPOSE, MEMBERS, OFFICERS.] (a) The 29.4 legislature finds that the purposes of the board are to (1) 29.5 preserve and enhance the dignity, beauty and architectural 29.6 integrity of the capitol, the buildings immediately adjacent to 29.7 it, the capitol grounds, and the capitol area; (2) protect, 29.8 enhance, and increase the open spaces within the capitol area 29.9 when deemed necessary and desirable for the improvement of the 29.10 public enjoyment thereof; (3) develop proper approaches to the 29.11 capitol area for pedestrian movement, the highway system, and 29.12 mass transit system so that the area achieves its maximum 29.13 importance and accessibility; and (4) establish a flexible 29.14 framework for growth of the capitol buildings which will be in 29.15 keeping with the spirit of the original design. 29.16 (b) The capitol area architectural and planning board, 29.17 herein referred to as the board, is established within the 29.18 department of administration. The board consists of ten 29.19 members. The lieutenant governor shall be a member of the 29.20 board. Four members shall be appointed by the governor; three 29.21 members, one of whom shall be a resident of the district 29.22 planning council area containing the capitol area, shall be 29.23 appointed by the mayor of the city of Saint Paul, with the 29.24 advice and consent of the city council. The speaker of the 29.25 house shall appoint a member of the house of representatives and 29.26 the president of the senate shall appoint one senator to be 29.27 members of the board. Each person appointed to the board shall 29.28 qualify by taking the oath of office. 29.29 (c) The lieutenant governor is the chair of the board. The 29.30 attorney general is the legal advisor to the board. The board 29.31 may elect a vice-chair who may preside at meetings in the 29.32 absence of the lieutenant governor and such other officers as it 29.33 may deem necessary to carry out its duties. 29.34 (d) The commissioner of administration, after consulting 29.35 with the board, shallselectappoint an executive secretary to 29.36 serve the board.ItThe commissioner may employ such other 30.1 officers and employees asitthe commissioner may deem 30.2 necessary, all of whom shall be in the classified service of the 30.3 state civil service. The board may contract for professional 30.4 and other similar service on such terms as it may deem 30.5 desirable. The commissioner must provide administrative support 30.6 to the board. 30.7 Sec. 32. [15A.23] [POLITICAL SUBDIVISION COMPENSATION 30.8 LIMIT.] 30.9 (a) The salary and the value of all other forms of 30.10 compensation of a person employed by a political subdivision of 30.11 this state excluding a school district, or employed under 30.12 section 422A.03, may not exceed 95 percent of the salary of the 30.13 governor as set under section 15A.082, except as provided in 30.14 this section. For purposes of this subdivision, "political 30.15 subdivision of this state" includes a statutory or home rule 30.16 charter city, county, town, metropolitan or regional agency, or 30.17 other political subdivision, but does not include a hospital, 30.18 clinic, or health maintenance organization owned by such a 30.19 governmental unit. 30.20 (b) Deferred compensation and payroll allocations to 30.21 purchase an individual annuity contract for an employee are 30.22 included in determining the employee's salary. Other forms of 30.23 compensation which shall be included to determine an employee's 30.24 total compensation are all other direct and indirect items of 30.25 compensation which are not specifically excluded by this 30.26 section. Other forms of compensation which shall not be 30.27 included in a determination of an employee's total compensation 30.28 for the purposes of this section are: 30.29 (1) employee benefits that are also provided for the 30.30 majority of all other full-time employees of the political 30.31 subdivision, vacation and sick leave allowances, health and 30.32 dental insurance, disability insurance, term life insurance, and 30.33 pension benefits or like benefits the cost of which is borne by 30.34 the employee or which is not subject to tax as income under the 30.35 Internal Revenue Code of 1986; 30.36 (2) dues paid to organizations that are of a civic, 31.1 professional, educational, or governmental nature; and 31.2 (3) reimbursement for actual expenses incurred by the 31.3 employee which the governing body determines to be directly 31.4 related to the performance of job responsibilities, including 31.5 any relocation expenses paid during the initial year of 31.6 employment. 31.7 The value of other forms of compensation shall be the 31.8 annual cost to the political subdivision for the provision of 31.9 the compensation. 31.10 (c) The salary of a medical doctor or doctor of osteopathy 31.11 occupying a position that the governing body of the political 31.12 subdivision has determined requires an M.D. or D.O. degree is 31.13 excluded from the limitation in this section. 31.14 (d) The state auditor may increase the limitation in this 31.15 section for a position that the state auditor has determined 31.16 requires special expertise necessitating a higher salary to 31.17 attract or retain a qualified person. The state auditor shall 31.18 review each proposed increase giving due consideration to salary 31.19 rates paid to other persons with similar responsibilities in the 31.20 state and nation. 31.21 Before granting an increase in the limitation, the state 31.22 auditor must submit the proposed increase to the legislative 31.23 coordinating commission for its review and recommendation. The 31.24 recommendation is advisory only. If the commission fails to 31.25 make a recommendation with 30 days from its receipt of the 31.26 proposal, it is deemed to have made no recommendation. The 31.27 state auditor may charge and collect, pursuant to section 6.56, 31.28 a fee from political subdivisions proposing a limitation 31.29 increase to cover the cost incurred by the state auditor under 31.30 this subdivision. 31.31 Sec. 33. Minnesota Statutes 2002, section 16A.11, 31.32 subdivision 3, is amended to read: 31.33 Subd. 3. [PART TWO: DETAILED BUDGET.] (a) Part two of the 31.34 budget, the detailed budget estimates both of expenditures and 31.35 revenues, must contain any statements on the financial plan 31.36 which the governor believes desirable or which may be required 32.1 by the legislature. The detailed estimates shall include the 32.2 governor's budget arranged in tabular form. 32.3 (b) The detailed estimates must include a separate line 32.4 listingthe total number of professional or technical service32.5contracts andthe total cost ofthoseprofessional and technical 32.6 service contracts for the prior biennium and the 32.7 projectednumber of professional or technical service contracts32.8and the projectedcosts of those contracts for the current and 32.9 upcoming biennium. They must also include a summary of the 32.10 personnel employed by the agency, reflected as full-time 32.11 equivalent positions, and the number of professional or32.12technical service consultants for the current biennium. 32.13 (c) The detailed estimates for internal service funds must 32.14 include the number of full-time equivalents by program; detail 32.15 on any loans from the general fund, including dollar amounts by 32.16 program; proposed investments in technology or equipment of 32.17 $100,000 or more; an explanation of any operating losses or 32.18 increases in retained earnings; and a history of the rates that 32.19 have been charged, with an explanation of any rate changes and 32.20 the impact of the rate changes on affected agencies. 32.21 [EFFECTIVE DATE.] This section is effective the day 32.22 following final enactment. 32.23 Sec. 34. Minnesota Statutes 2002, section 16A.17, is 32.24 amended by adding a subdivision to read: 32.25 Subd. 10. [DIRECT DEPOSIT.] Notwithstanding section 32.26 177.23, the commissioner may require direct deposit for all 32.27 state employees that are being paid by the state payroll system. 32.28 Sec. 35. Minnesota Statutes 2002, section 16A.40, is 32.29 amended to read: 32.30 16A.40 [WARRANTS AND ELECTRONIC FUND TRANSFERS.] 32.31 Money must not be paid out of the state treasury except 32.32 upon the warrant of the commissioner or an electronic fund 32.33 transfer approved by the commissioner. Warrants must be drawn 32.34 on printed blanks that are in numerical order. The commissioner 32.35 shall enter, in numerical order in a warrant register, the 32.36 number, amount, date, and payee for every warrant issued. 33.1 The commissioner may require payeesreceiving more than ten33.2payments or $10,000 per year mustto supplythe commissioner33.3withtheir bank routing information to enable the payments to be 33.4 made through an electronic fund transfer. 33.5 Sec. 36. Minnesota Statutes 2002, section 16A.501, is 33.6 amended to read: 33.7 16A.501 [REPORT ON EXPENDITURE OF BOND PROCEEDS.] 33.8 The commissioner of finance must report annually to the 33.9 legislature on the degree to which entities receiving 33.10 appropriations for capital projects in previous omnibus capital 33.11 improvement acts have encumbered or expended that money. The 33.12 report must be submitted to the chairs of the house of 33.13 representatives ways and means committee and the senate finance 33.14 committee byFebruaryJanuary 1 of each year. 33.15 Sec. 37. Minnesota Statutes 2002, section 16A.642, 33.16 subdivision 1, is amended to read: 33.17 Subdivision 1. [REPORTS.] (a) The commissioner of finance 33.18 shall report to the chairs of the senate committee on finance 33.19 and the house of representatives committees on ways and means 33.20 and on capital investment byFebruaryJanuary 1 of each 33.21 odd-numbered year on the following: 33.22 (1) all laws authorizing the issuance of state bonds or 33.23 appropriating general fund money for state or local government 33.24 capital investment projects enacted more than four years before 33.25FebruaryJanuary 1 of that odd-numbered year; the projects 33.26 authorized to be acquired and constructed for which less than 33.27 100 percent of the authorized total cost has been expended, 33.28 encumbered, or otherwise obligated; the cost of contracts to be 33.29 let in accordance with existing plans and specifications shall 33.30 be considered expended for this report; and the amount of 33.31 general fund money appropriated but not spent or otherwise 33.32 obligated, and the amount of bonds not issued and bond proceeds 33.33 held but not previously expended, encumbered, or otherwise 33.34 obligated for these projects; and 33.35 (2) all laws authorizing the issuance of state bonds or 33.36 appropriating general fund money for state or local government 34.1 capital programs or projects other than those described in 34.2 clause (1), enacted more than four years beforeFebruaryJanuary 34.3 1 of that odd-numbered year; and the amount of general fund 34.4 money appropriated but not spent or otherwise obligated, and the 34.5 amount of bonds not issued and bond proceeds held but not 34.6 previously expended, encumbered, or otherwise obligated for 34.7 these programs and projects. 34.8 (b) The commissioner shall also report on general fund 34.9 appropriations for capital projects, bond authorizations or bond 34.10 proceed balances that may be canceled because projects have been 34.11 canceled, completed, or otherwise concluded, or because the 34.12 purposes for which the money was appropriated or bonds were 34.13 authorized or issued have been canceled, completed, or otherwise 34.14 concluded. The general fund appropriations, bond authorizations 34.15 or bond proceed balances that are unencumbered or otherwise not 34.16 obligated that are reported by the commissioner under this 34.17 subdivision are canceled, effective July 1 of the year of the 34.18 report, unless specifically reauthorized by act of the 34.19 legislature. 34.20 Sec. 38. Minnesota Statutes 2002, section 16B.24, 34.21 subdivision 5, is amended to read: 34.22 Subd. 5. [RENTING OUT STATE PROPERTY.] (a) [AUTHORITY.] 34.23 The commissioner may rent out state property, real or personal, 34.24 that is not needed for public use, if the rental is not 34.25 otherwise provided for or prohibited by law. The property may 34.26 not be rented out for more than five years at a time without the 34.27 approval of the state executive council and may never be rented 34.28 out for more than 25 years. A rental agreement may provide that 34.29 the state will reimburse a tenant for a portion of capital 34.30 improvements that the tenant makes to state real property if the 34.31 state does not permit the tenant to renew the lease at the end 34.32 of the rental agreement. 34.33 (b) [RESTRICTIONS.] Paragraph (a) does not apply to state 34.34 trust fund lands, other state lands under the jurisdiction of 34.35 the department of natural resources, lands forfeited for 34.36 delinquent taxes, lands acquired under section 298.22, or lands 35.1 acquired under section 41.56 which are under the jurisdiction of 35.2 the department of agriculture. 35.3 (c) [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 35.4 Chapel, located within the boundaries of Fort Snelling State 35.5 Park, is available for use only on payment of a rental fee. The 35.6 commissioner shall establish rental fees for both public and 35.7 private use. The rental fee for private use by an organization 35.8 or individual must reflect the reasonable value of equivalent 35.9 rental space. Rental fees collected under this section must be 35.10 deposited in the general fund. 35.11 (d) [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 35.12 shall establish rental rates for all living accommodations 35.13 provided by the state for its employees. Money collected as 35.14 rent by state agencies pursuant to this paragraph must be 35.15 deposited in the state treasury and credited to the general fund. 35.16 (e) [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 35.17 AGENCIES.] The commissioner may lease portions of the 35.18 state-owned buildings in the capitol complex, the capitol square 35.19 building, the health building, the Duluth government center, and 35.20 the building at 1246 University Avenue, St. Paul, Minnesota, to 35.21 state agencies and the court administrator on behalf of the 35.22 judicial branch of state government and charge rent on the basis 35.23 of space occupied. Notwithstanding any law to the contrary, all 35.24 money collected as rent pursuant to the terms of this section 35.25 shall be deposited in the state treasury. Money collected as 35.26 rent to recover the bond interest costs of a building funded 35.27 from the state bond proceeds fund shall be credited to the 35.28 general fund. Money collected as rent to recover the 35.29 depreciation costs of a building funded from the state bond 35.30 proceeds fund and money collected as rent to recover capital 35.31 expenditures from capital asset preservation and replacement 35.32 appropriations and statewide building access appropriations 35.33 shall be credited to a segregated account in a special revenue 35.34 fund. Fifty percent of the money credited to the account each 35.35 fiscal year must be transferred to the general fund. The 35.36 remaining money in the account is appropriated to the 36.1 commissioner to be expended for asset preservation projects as 36.2 determined by the commissioner. Money collected as rent to 36.3 recover the depreciation and interest costs of a building built 36.4 with other state dedicated funds shall be credited to the 36.5 dedicated fund which funded the original acquisition or 36.6 construction. All other money received shall be credited to the 36.7 general services revolving fund. 36.8 Sec. 39. Minnesota Statutes 2002, section 16B.35, 36.9 subdivision 1, is amended to read: 36.10 Subdivision 1. [PERCENT OF APPROPRIATIONS FOR ART.] An 36.11 appropriation for the construction or alteration of any state 36.12 building may contain an amount not to exceed the lesser of 36.13 $100,000 or one percent of the total appropriation for the 36.14 building for the acquisition of works of art, excluding 36.15 landscaping, which may be an integral part of the building or 36.16 its grounds, attached to the building or grounds or capable of 36.17 being displayed in other state buildings. If the appropriation 36.18 for works of art is limited by the $100,000 cap in this section, 36.19 the appropriation for the construction or alteration of the 36.20 building must be reduced to reflect the reduced amount that will 36.21 be spent on works of art. Money used for this purpose is 36.22 available only for the acquisition of works of art to be 36.23 exhibited in areas of a building or its grounds accessible, on a 36.24 regular basis, to members of the public. No more than ten 36.25 percent of the total amount available each fiscal year under 36.26 this subdivision may be used for administrative expenses, either 36.27 by the commissioner of administration or by any other entity to 36.28 whom the commissioner delegates administrative authority. For 36.29 the purposes of this section "state building" means a building 36.30 the construction or alteration of which is paid for wholly or in 36.31 part by the state. 36.32 Sec. 40. Minnesota Statutes 2002, section 16B.465, 36.33 subdivision 1a, is amended to read: 36.34 Subd. 1a. [CREATION.] Except as provided in subdivision 4, 36.35 the commissioner, through the state information infrastructure, 36.36 shall arrange for the provision of voice, data, video, and other 37.1 telecommunications transmission services to state agencies. The 37.2 state information infrastructure may also serve educational 37.3 institutions, including public schools as defined in section 37.4 120A.05, subdivisions 9, 11, 13, and 17, nonpublic, church or 37.5 religious organization schools that provide instruction in 37.6 compliance with sections 120A.22, 120A.24, and 120A.41, and 37.7 private colleges; public corporations; Indian tribal 37.8 governments;andstate political subdivisions; and public 37.9 noncommercial educational television broadcast stations as 37.10 defined in section 129D.12, subdivision 2. It is not a 37.11 telephone company for purposes of chapter 237. The commissioner 37.12 may purchase, own, or lease any telecommunications network 37.13 facilities or equipment after first seeking bids or proposals 37.14 and having determined that the private sector cannot, will not, 37.15 or is unable to provide these services, facilities, or equipment 37.16 as bid or proposed in a reasonable or timely fashion consistent 37.17 with policy set forth in this section. The commissioner shall 37.18 not resell or sublease any services or facilities to nonpublic 37.19 entities except to serve private schools and colleges. The 37.20 commissioner has the responsibility for planning, development, 37.21 and operations of the state information infrastructure in order 37.22 to provide cost-effective telecommunications transmission 37.23 services to state information infrastructure users consistent 37.24 with the policy set forth in this section. 37.25 Sec. 41. Minnesota Statutes 2002, section 16B.465, 37.26 subdivision 7, is amended to read: 37.27 Subd. 7. [EXEMPTION.] The system is exempt from the 37.28 five-year limitation on contracts set by sections 16C.05, 37.29 subdivision 2, paragraph(a), clause (5)(b), 16C.08, 37.30 subdivision 3, clause(7)(5), and 16C.09, clause(6)(5). 37.31 [EFFECTIVE DATE.] This section is effective the day 37.32 following final enactment. 37.33 Sec. 42. Minnesota Statutes 2002, section 16B.47, is 37.34 amended to read: 37.35 16B.47 [MICROGRAPHICS.] 37.36 The commissionershallmay provide micrographics services 38.1 and products to meet agency needs. Within available resources, 38.2 the commissioner may also provide micrographic services to 38.3 political subdivisions. Agency plans and programs for 38.4 micrographics must be submitted to and receive the approval of 38.5 the commissioner prior to implementation. Upon the 38.6 commissioner's approval, subsidiary or independent microfilm 38.7 operations may be implemented in other state agencies. The 38.8 commissioner may direct that copies of official state documents 38.9 be distributed to official state depositories on microfilm. 38.10 [EFFECTIVE DATE.] This section is effective the day 38.11 following final enactment. 38.12 Sec. 43. Minnesota Statutes 2002, section 16B.48, 38.13 subdivision 2, is amended to read: 38.14 Subd. 2. [PURPOSE OF FUNDS.] Money in the state treasury 38.15 credited to the general services revolving fund and money that 38.16 is deposited in the fund is appropriated annually to the 38.17 commissioner for the following purposes: 38.18 (1) to operate a central store and equipment service; 38.19 (2)to operate a central duplication and printing service;38.20(3)to operate the central mailing service, including 38.21 purchasing postage and related items and refunding postage 38.22 deposits; 38.23(4)(3) to operate a documents service as prescribed by 38.24 section 16B.51; 38.25(5)(4) to provide services for the maintenance, operation, 38.26 and upkeep of buildings and grounds managed by the commissioner 38.27 of administration; 38.28(6)(5) to operate a materials handling service, including 38.29 interagency mail and product delivery, solid waste removal, 38.30 courier service, equipment rental, and vehicle and equipment 38.31 maintenance; 38.32(7)(6) to provide analytical, statistical, and 38.33 organizational development services to state agencies, local 38.34 units of government, metropolitan and regional agencies, and 38.35 school districts; 38.36(8)(7) to operate a records center and provide 39.1 micrographics products and services; and 39.2(9)(8) to perform services for any other agency. Money 39.3 may be expended for this purpose only when directed by the 39.4 governor. The agency receiving the services shall reimburse the 39.5 fund for their cost, and the commissioner shall make the 39.6 appropriate transfers when requested. The term "services" as 39.7 used in this clause means compensation paid officers and 39.8 employees of the state government; supplies, materials, 39.9 equipment, and other articles and things used by or furnished to 39.10 an agency; and utility services and other services for the 39.11 maintenance, operation, and upkeep of buildings and offices of 39.12 the state government. 39.13 [EFFECTIVE DATE.] This section is effective the day 39.14 following final enactment. 39.15 Sec. 44. Minnesota Statutes 2002, section 16B.49, is 39.16 amended to read: 39.17 16B.49 [CENTRAL MAILING SYSTEM.] 39.18 The commissionershallmay maintain and operate for state 39.19 agencies, departments, institutions, and offices a central mail 39.20 handling unit. Official, outgoing mail for units in St. Paul 39.21mustmay be required to be delivered unstamped to the unit. The 39.22 unitshallmay also operate an interoffice mail distribution 39.23 system. The department may add personnel and acquire equipment 39.24 that may be necessary to operate the unit efficiently and 39.25 cost-effectively. Account must be kept of the postage required 39.26 on that mail, which is then a proper charge against the agency 39.27 delivering the mail. To provide funds for the payment of 39.28 postage, each agencyshallmay be required to make advance 39.29 payments to the commissioner sufficient to cover its postage 39.30 obligations for at least 60 days. For purposes of this section, 39.31 the Minnesota state colleges and universities is a state agency. 39.32 [EFFECTIVE DATE.] This section is effective the day 39.33 following final enactment. 39.34 Sec. 45. Minnesota Statutes 2002, section 16B.58, is 39.35 amended by adding a subdivision to read: 39.36 Subd. 6a. [PARKING RESTRICTIONS.] Notwithstanding any law 40.1 to the contrary: 40.2 (1) parking is prohibited in the terraces adjacent to the 40.3 carriage entrance on the south side of the capitol building; 40.4 (2) the ten parking spaces on Aurora Avenue closest to the 40.5 main entrance of the capitol building must be reserved for 40.6 parking by physically disabled persons displaying a certificate 40.7 issued under section 169.345; and 40.8 (3) the remainder of the parking spaces on Aurora Avenue 40.9 must be reserved for the general public during legislative 40.10 session. 40.11 Sec. 46. [16C.045] [REPORTING OF VIOLATIONS] 40.12 A state employee who discovers evidence of violation of 40.13 laws or rules governing state contracts is encouraged to report 40.14 the violation or suspected violation to the employee's 40.15 supervisor, the commissioner or the commissioner's designee, or 40.16 the legislative auditor. The legislative auditor must report to 40.17 the legislative coordinating commission if there are multiple 40.18 complaints about the same agency. The auditor's report to the 40.19 legislative coordinating commission under this section must 40.20 disclose only the number and type of violations alleged. An 40.21 employee making a good faith report under this section is 40.22 covered by section 181.932, prohibiting the employer from 40.23 discriminating against the employee. 40.24 [EFFECTIVE DATE.] This section is effective the day 40.25 following final enactment. 40.26 Sec. 47. Minnesota Statutes 2002, section 16C.05, 40.27 subdivision 2, is amended to read: 40.28 Subd. 2. [CREATION AND VALIDITY OF CONTRACTS.] (a) A 40.29 contract is not valid and the state is not bound by it and no 40.30 agency, without the prior written approval of the commissioner, 40.31 may authorize work to begin on it unless: 40.32 (1) it has first been executed by the head of the agency or 40.33 a delegate who is a party to the contract; 40.34 (2) it has been approved by the commissioner; and 40.35 (3)it has been approved by the attorney general or a40.36delegate as to form and execution;41.1(4)the accounting system shows anobligation in an expense41.2budget orencumbrance for the amount of the contract liability;41.3and. 41.4(5)(b) The combined contract and amendmentsshallmust not 41.5 exceed five years without specific, written approval by the 41.6 commissioner according to established policy, procedures, and 41.7 standards, or unless otherwise provided for by law. The term of 41.8 the original contract must not exceed two years unless the 41.9 commissioner determines that a longer duration is in the best 41.10 interest of the state. Before approving a contract amendment or 41.11 extension, the commissioner must determine that: (1) the goods 41.12 or services to be obtained under the amendment or extension are 41.13 substantially similar to those in the original contract; and (2) 41.14 the contracting agency has demonstrated that the benefits to the 41.15 agency of full and open competition do not justify the time and 41.16 expense of a separate solicitation for the goods or services 41.17 included in the contract amendment or extension. When the 41.18 commissioner approves a contract amendment or extension, the 41.19 commissioner must post a summary of the approval on the 41.20 department's Web site for at least 60 days. The summary must 41.21 include the contract number, agency name, vendor, and the dollar 41.22 amount of the contract amendment or extension. 41.23(b)(c) Grants, interagency agreements, purchase orders, 41.24 work orders, and annual plans need not, in the discretion of the 41.25 commissioner and attorney general, require the signature of the 41.26 commissioner and/or the attorney general. A signature is not 41.27 required for work orders and amendments to work orders related 41.28 to department of transportation contracts. Bond purchase 41.29 agreements by the Minnesota public facilities authority do not 41.30 require the approval of the commissioner. 41.31(c)(d) A fully executed copy of every contract, amendments 41.32 to the contract, and performance evaluations relating to the 41.33 contract must be kept on file at the contracting agency for a 41.34 time equal to that specified for contract vendors and other 41.35 parties in subdivision 5. 41.36 (e) No action may be maintained by a contractor against an 42.1 employee or agency who discloses information about a current or 42.2 former contractor in a performance evaluation, including 42.3 performance evaluations required under section 16C.08, 42.4 subdivision 4a, unless the contractor demonstrates by clear and 42.5 convincing evidence that: 42.6 (1) the information was false and defamatory; 42.7 (2) the employee or agency knew or should have known the 42.8 information was false and acted with malicious intent to injure 42.9 the current or former contractor; and 42.10 (3) the information was acted upon in a manner that caused 42.11 harm to the current or former contractor. 42.12 [EFFECTIVE DATE.] This section is effective the day 42.13 following final enactment. 42.14 Sec. 48. Minnesota Statutes 2002, section 16C.08, 42.15 subdivision 2, is amended to read: 42.16 Subd. 2. [DUTIES OF CONTRACTING AGENCY.] (a) Before an 42.17 agency may seek approval of a professional or technical services 42.18 contract valued in excess of $5,000, it mustcertify to the42.19commissioner thatprovide the following: 42.20 (1) a description of how the proposed contract or amendment 42.21 is necessary and reasonable to advance the statutory mission of 42.22 the agency; 42.23 (2) a description of the agency's plan to notify firms or 42.24 individuals who may be available to perform the services called 42.25 for in the solicitation; and 42.26 (3) a description of the performance measures or other 42.27 tools that will be used to monitor and evaluate contract 42.28 performance. 42.29 (b) In addition to the information in paragraph (a), 42.30 clauses (1) to (3), the agency must certify that: 42.31 (1)no current state employee is able and available to42.32perform the services called for by the contract;42.33(2)the normal competitive bidding mechanisms will not 42.34 provide for adequate performance of the services; 42.35(3) the contractor has certified that the product of the42.36services will be original in character;43.1(4)(2) reasonable effortswerewill be made to publicize 43.2 the availability of the contract to the public; 43.3(5) the agency has received, reviewed, and accepted a43.4detailed work plan from the contractor for performance under the43.5contract, if applicable;43.6(6)(3) the agencyhas developed,will develop andfully43.7intends toimplement,a written plan providing for the 43.8 assignment of specific agency personnel to a monitoring and 43.9 liaison function, the periodic review of interim reports or 43.10 other indications of past performance, and the ultimate 43.11 utilization of the final product of the services;and43.12(7)(4) the agency will not allow the contractor to begin 43.13 work before the contract is fully executed unless an exception 43.14 has been approved by the commissioner and funds are fully 43.15 encumbered.; 43.16 (5) the contract will not establish an employment 43.17 relationship between the state or the agency and any persons 43.18 performing under the contract; and 43.19 (6) in the event the results of the contract work will be 43.20 carried out or continued by state employees upon completion of 43.21 the contract, the contractor is required to include state 43.22 employees in development and training, to the extent necessary 43.23 to ensure that after completion of the contract, state employees 43.24 can perform any ongoing work related to the same function. 43.25 (c) A contract establishes an employment relationship for 43.26 purposes of paragraph (b), clause (5), if, under federal laws 43.27 governing the distinction between an employee and an independent 43.28 contractor, a person would be considered an employee. 43.29 [EFFECTIVE DATE.] This section is effective the day 43.30 following final enactment. 43.31 Sec. 49. Minnesota Statutes 2002, section 16C.08, 43.32 subdivision 3, is amended to read: 43.33 Subd. 3. [PROCEDURE FOR PROFESSIONAL OR TECHNICAL SERVICES 43.34 CONTRACTS.] Before approving a proposed contract for 43.35 professional or technical services, the commissioner must 43.36 determine, at least, that: 44.1 (1) all provisions of subdivision 2 and section 16C.16 have 44.2 been verified or complied with; 44.3 (2) the agency has demonstrated that the work to be 44.4 performed under the contract is necessary to the agency's 44.5 achievement of its statutory responsibilities and there is 44.6 statutory authority to enter into the contract; 44.7 (3)the contract will not establish an employment44.8relationship between the state or the agency and any persons44.9performing under the contract;44.10(4)the contractor and agents are not employees of the 44.11 state; 44.12(5) no agency has previously performed or contracted for44.13the performance of tasks which would be substantially duplicated44.14under the proposed contract;44.15(6)(4) the contracting agency has specified a satisfactory 44.16 method of evaluating and using the results of the work to be 44.17 performed; and 44.18(7)(5) the combined contract and amendments will not 44.19 exceed five years, unless otherwise provided for by law. The 44.20 term of the original contract must not exceed two years unless 44.21 the commissioner determines that a longer duration is in the 44.22 best interest of the state. 44.23 [EFFECTIVE DATE.] This section is effective the day 44.24 following final enactment. 44.25 Sec. 50. Minnesota Statutes 2002, section 16C.08, 44.26 subdivision 4, is amended to read: 44.27 Subd. 4. [REPORTS.] (a) The commissioner shall submit to 44.28 the governor, the chairs of the house ways and means and senate 44.29 finance committees, and the legislative reference library a 44.30 yearly listing of all contracts for professional or technical 44.31 services executed. The report must identify the contractor, 44.32 contract amount, duration, and services to be provided. The 44.33 commissioner shall also issue yearly reports summarizing the 44.34 contract review activities of the department by fiscal year. 44.35 (b) The fiscal year report must be submitted by September 1 44.36 of each year and must: 45.1 (1) be sorted by agency and by contractor; 45.2 (2) show the aggregate value of contracts issued by each 45.3 agency and issued to each contractor; 45.4 (3) distinguish between contracts that are being issued for 45.5 the first time and contracts that are being extended; 45.6 (4) state the termination date of each contract; and 45.7 (5) identify services by commodity code, including topics 45.8 such as contracts for training, contracts for research and 45.9 opinions, and contracts for computer systems. 45.10 (c) Within 30 days of final completion of a contract over 45.11$40,000$50,000 covered by this subdivision, the head of the 45.12 agency entering into the contract must submit a one-page report 45.13 to the commissioner who must submit a copy to the legislative 45.14 reference library. The report must: 45.15 (1) summarize the purpose of the contract, including why it 45.16 was necessary to enter into a contract; 45.17 (2) state the amount spent on the contract; and 45.18 (3)explain why this amount was a cost-effective way to45.19enable the agency to provide its services or products better or45.20more efficientlybe accompanied by the performance evaluation 45.21 prepared in accordance with subdivision 4a. 45.22 [EFFECTIVE DATE.] This section is effective the day 45.23 following final enactment. 45.24 Sec. 51. Minnesota Statutes 2002, section 16C.08, is 45.25 amended by adding a subdivision to read: 45.26 Subd. 4a. [PERFORMANCE EVALUATION.] Upon completion of a 45.27 professional or technical services contract, an agency entering 45.28 into the contract must complete a written performance evaluation 45.29 of the work done under the contract. The evaluation must 45.30 include an appraisal of the contractor's timeliness, quality, 45.31 cost, and overall performance in meeting the terms and 45.32 objectives of the contract, and evaluate the extent to which the 45.33 contract was a cost-effective way to enable the agency to 45.34 provide its services or products better or more efficiently. 45.35 Contractors may request copies of evaluations prepared under 45.36 this subdivision and may respond in writing. Contractor 46.1 responses must be maintained with the contract file. 46.2 [EFFECTIVE DATE.] This section is effective the day 46.3 following final enactment. 46.4 Sec. 52. Minnesota Statutes 2002, section 16C.09, is 46.5 amended to read: 46.6 16C.09 [PROCEDURE FOR SERVICE CONTRACTS.] 46.7(a)Before entering into or approving a service contract, 46.8 the commissioner must determine, at least, that: 46.9 (1)no current state employee is able and available to46.10perform the services called for by the contract;46.11(2)the work to be performed under the contract is 46.12 necessary to the agency's achievement of its statutory 46.13 responsibilities and there is statutory authority to enter into 46.14 the contract; 46.15(3)(2) the contract will not establish an employment 46.16 relationship between the state or the agency and any persons 46.17 performing under the contract; 46.18(4)(3) the contractor and agents are not employees of the 46.19 state; 46.20(5)(4) the contracting agency has specified a satisfactory 46.21 method of evaluating and using the results of the work to be 46.22 performed; and 46.23(6)(5) the combined contract and amendments will not 46.24 exceed five years without specific, written approval by the 46.25 commissioner according to established policy, procedures, and 46.26 standards, or unless otherwise provided for by law. The term of 46.27 the original contract must not exceed two years, unless the 46.28 commissioner determines that a longer duration is in the best 46.29 interest of the state. 46.30(b) For purposes of paragraph (a), clause (1), employees46.31are available if qualified and:46.32(1) are already doing the work in question; or46.33(2) are on layoff status in classes that can do the work in46.34question.46.35An employee is not available if the employee is doing other46.36work, is retired, or has decided not to do the work in question.47.1 [EFFECTIVE DATE.] This section is effective the day 47.2 following final enactment. 47.3 Sec. 53. Minnesota Statutes 2002, section 16C.10, 47.4 subdivision 7, is amended to read: 47.5 Subd. 7. [REVERSE AUCTION.] (a) For the purpose of this 47.6 subdivision, "reverse auction" means a purchasing process in 47.7 which vendors compete to provide goods or services at the lowest 47.8 selling price in an open and interactive environment. 47.9 (b) The provisions of section 16C.06, subdivisions 2 and 3, 47.10 do not apply when the commissioner determines that a reverse 47.11 auction is the appropriate purchasing process. Notwithstanding 47.12 any contrary provision of sections 16C.26 to 16C.28, reverse 47.13 auctions are competitive bids and bid responses to reverse 47.14 auctions may be accepted instead of sealed bids, when the 47.15 commissioner determines that a reverse auction is the 47.16 appropriate purchasing process. 47.17 Sec. 54. Minnesota Statutes 2002, section 16D.08, 47.18 subdivision 2, is amended to read: 47.19 Subd. 2. [POWERS.] (a) In addition to the collection 47.20 remedies available to private collection agencies in this state, 47.21 the commissioner, with legal assistance from the attorney 47.22 general, may utilize any statutory authority granted to a 47.23 referring agency for purposes of collecting debt owed to that 47.24 referring agency. The commissioner may also delegate to the 47.25 enterprise the tax collection remedies in sections 270.06, 47.26 clauses (7) and (17), excluding the power to subpoena witnesses; 47.27 270.66; 270.69, excluding subdivisions 7 and 13; 270.70, 47.28 excluding subdivision 14; 270.7001 to 270.72; and 290.92, 47.29 subdivision 23, except that a continuous wage levy under section 47.30 290.92, subdivision 23, is only effective for 70 days, unless no 47.31 competing wage garnishments, executions, or levies are served 47.32 within the 70-day period, in which case a wage levy is 47.33 continuous until a competing garnishment, execution, or levy is 47.34 served in the second or a succeeding 70-day period, in which 47.35 case a continuous wage levy is effective for the remainder of 47.36 that period. A debtor who qualifies for cancellation of 48.1 collection costs under section 16D.11, subdivision 3, clause 48.2 (1), can apply to the commissioner for reduction or release of a 48.3 continuous wage levy, if the debtor establishes that the debtor 48.4 needs all or a portion of the wages being levied upon to pay for 48.5 essential living expenses, such as food, clothing, shelter, 48.6 medical care, or expenses necessary for maintaining employment. 48.7 The commissioner's determination not to reduce or release a 48.8 continuous wage levy is appealable to district court. The word 48.9 "tax" or "taxes" when used in the tax collection statutes listed 48.10 in this subdivision also means debts referred under this chapter. 48.11 (b) For debts other than state taxes,and child support, or48.12student loans, before any of the tax collection remedies listed48.13in this subdivision can be used, except for the remedies in48.14section 270.06, clauses (7) and (17),if the referring agency 48.15 has not already obtained a judgment or filed a lien,the48.16commissioner must first obtain a judgment against the debtor.48.17For student loans when the referring agency has not obtained a48.18judgment or filed a lien,before using the tax collection 48.19 remedies listed in this subdivision, except for the remedies in 48.20 section 270.06, clauses (7) and (17), the commissioner shall 48.21 give the debtor3090 days' notice in writing, whichmayshall 48.22 be servedin any manner permitted in section 270.68 for service48.23of a summons and complaintby both first class mail and 48.24 certified mail to the debtor's address as provided by the 48.25 referring agency. The notice must advise the debtor of the 48.26 debtor's right to request that the commissioner commence a court 48.27 action, and that if no such request is made within3090 days 48.28 after service of the notice, the commissioner may use these tax 48.29 collection remedies. If a timely request is made, the 48.30 commissioner shall obtain a judgment before using these tax 48.31 collection remedies. 48.32 [EFFECTIVE DATE.] This section is effective the day 48.33 following final enactment for all debts referred, whether 48.34 referred prior to or on or after the day following final 48.35 enactment. 48.36 Sec. 55. Minnesota Statutes 2002, section 16D.10, is 49.1 amended to read: 49.2 16D.10 [CASE REVIEWER.] 49.3 Subdivision 1. [DUTIES.] The commissioner shall make a 49.4 case reviewer available to debtors. The reviewer must be 49.5 available to answer a debtor's questions concerning the 49.6 collection process and to review the collection activity taken. 49.7 If the reviewer reasonably believes that the particular action 49.8 being taken is unreasonable or unfair, the reviewer may make 49.9 recommendations to the commissioner in regard to the collection 49.10 action. 49.11 Subd. 2. [AUTHORITY TO ISSUE DEBTOR ASSISTANCE ORDER.] On 49.12 application filed by a debtor with the case reviewer, in the 49.13 form, manner, and in the time prescribed by the commissioner, 49.14 and after thorough investigation, the case reviewer may issue a 49.15 debtor assistance order if, in the determination of the case 49.16 reviewer, the manner in which the state debt collection laws are 49.17 being administered is creating or will create an unjust and 49.18 inequitable result for the debtor. Debtor assistance orders 49.19 shall be governed by the provisions relating to taxpayer 49.20 assistance orders under section 270.273. 49.21 Subd. 3. [TRANSFER OF DUTIES TO TAXPAYER RIGHTS ADVOCATE.] 49.22 All duties and authority of the case reviewer under subdivisions 49.23 1 and 2 are transferred to the taxpayer rights advocate. 49.24 [EFFECTIVE DATE.] This section is effective the day 49.25 following final enactment. 49.26 Sec. 56. Minnesota Statutes 2002, section 16E.01, 49.27 subdivision 3, is amended to read: 49.28 Subd. 3. [DUTIES.] (a) The office shall: 49.29 (1) coordinate the efficient and effective use of available 49.30 federal, state, local, and private resources to develop 49.31 statewide information and communications technology and its 49.32 infrastructure; 49.33 (2) review state agency and intergovernmental information 49.34 and communications systems development efforts involving state 49.35 or intergovernmental funding, including federal funding, provide 49.36 information to the legislature regarding projects reviewed, and 50.1 recommend projects for inclusion in the governor's budget under 50.2 section 16A.11; 50.3 (3) encourage cooperation and collaboration among state and 50.4 local governments in developing intergovernmental communication 50.5 and information systems, and define the structure and 50.6 responsibilities of the information policy council; 50.7 (4) cooperate and collaborate with the legislative and 50.8 judicial branches in the development of information and 50.9 communications systems in those branches; 50.10 (5) continue the development of North Star, the state's 50.11 official comprehensive online service and information 50.12 initiative; 50.13 (6) promote and collaborate with the state's agencies in 50.14 the state's transition to an effectively competitive 50.15 telecommunications market; 50.16 (7) collaborate with entities carrying out education and 50.17 lifelong learning initiatives to assist Minnesotans in 50.18 developing technical literacy and obtaining access to ongoing 50.19 learning resources; 50.20 (8) promote and coordinate public information access and 50.21 network initiatives, consistent with chapter 13, to connect 50.22 Minnesota's citizens and communities to each other, to their 50.23 governments, and to the world; 50.24 (9) promote and coordinate electronic commerce initiatives 50.25 to ensure that Minnesota businesses and citizens can 50.26 successfully compete in the global economy; 50.27 (10) promote and coordinate the regular and periodic 50.28 reinvestment in the core information and communications 50.29 technology infrastructure so that state and local government 50.30 agencies can effectively and efficiently serve their customers; 50.31 (11) facilitate the cooperative development of standards 50.32 for information systems, electronic data practices and privacy, 50.33 and electronic commerce among international, national, state, 50.34 and local public and private organizations; and 50.35 (12) work with others to avoid unnecessary duplication of 50.36 existing services provided by other public and private 51.1 organizations while building on the existing governmental, 51.2 educational, business, health care, and economic development 51.3 infrastructures. 51.4 (b) The commissioner of administration in consultation with 51.5 the commissioner of finance may determine that it is 51.6 cost-effective for agencies to develop and use shared 51.7 information and communications technology systems for the 51.8 delivery of electronic government services. This determination 51.9 may be made if an agency proposes a new system that duplicates 51.10 an existing system, a system in development, or a system being 51.11 proposed by another agency. The commissioner of administration 51.12 shall establish reimbursement rates in cooperation with the 51.13 commissioner of finance to be billed to agencies and other 51.14 governmental entities sufficient to cover the actual 51.15 development, operating, maintenance, and administrative costs of 51.16 the shared systems. The methodology for billing may include 51.17 depositing such funds in the technology enterprise fund, the use 51.18 of interagency agreements, or other means as allowed by law. 51.19 Sec. 57. Minnesota Statutes 2002, section 16E.07, 51.20 subdivision 9, is amended to read: 51.21 Subd. 9. [AGGREGATION OF SERVICE DEMAND.] The office shall 51.22 identify opportunities to aggregate demand for technical 51.23 services required by government units for online activities and 51.24 may contract with governmental or nongovernmental entities to 51.25 provide services. These contracts are not subject to the 51.26 requirements of chapters 16B and 16C, except sections 16C.04, 51.2716C.07,16C.08, and 16C.09. 51.28 [EFFECTIVE DATE.] This section is effective the day 51.29 following final enactment. 51.30 Sec. 58. Minnesota Statutes 2002, section 16E.09, 51.31 subdivision 1, is amended to read: 51.32 Subdivision 1. [FUND ESTABLISHED.] A technology enterprise 51.33 fund is established. Money deposited in the fund is 51.34 appropriated to the commissioner of administration for the 51.35 purpose of funding technology projects among government entities 51.36 that promote cooperation, innovation, and shared use of 52.1 technology and technology standards, and electronic government 52.2 services. Savings generated by information technology and 52.3 communications projects or purchases, including rebates, 52.4 refunds, discounts, or other savings generated from aggregated 52.5 purchases of software, services, or technology products, may be 52.6 deposited in the fund upon agreement by the commissioner of 52.7 administration and the executive of the government entity 52.8 generating the funds. The commissioner of administration may 52.9 apply for and accept grants, contributions, or other gifts from 52.10 the federal government and other public or private sources for 52.11 deposit into the fund. The commissioner may accept paid 52.12 advertising for departmental publications, media productions, 52.13 state Web pages, and other informational materials. Unless 52.14 otherwise provided in statute, advertising revenues received 52.15 shall first be used to defray costs associated with production 52.16 and promotion of advertising activities and the remaining 52.17 balance shall be deposited into the fund. The commissioner may 52.18 not accept paid advertising from an elected official or 52.19 candidate for elected office. The transfer of funds between 52.20 state agencies is subject to the approval of the commissioner of 52.21 finance. The commissioner of finance shall notify the chairs of 52.22 the committees funding the affected state agencies of the 52.23 transfers. Funds are available until June 30, 2005. 52.24 Sec. 59. [43A.311] [DRUG PURCHASING PROGRAM.] 52.25 The commissioner of employee relations, in conjunction with 52.26 other state agencies, shall evaluate whether participation in a 52.27 multistate or multiagency drug purchasing program can reduce 52.28 costs or improve the operations of the drug benefit programs 52.29 administered by the department and other state agencies. The 52.30 commissioner and other state agencies must enter into a contract 52.31 with a vendor or other states for purposes of participating in a 52.32 multistate or multiagency drug purchasing program. 52.33 Sec. 60. Minnesota Statutes 2002, section 69.772, 52.34 subdivision 2, is amended to read: 52.35 Subd. 2. [DETERMINATION OF ACCRUED LIABILITY.] Each 52.36 firefighters' relief association which pays a service pension 53.1 when a retiring firefighter meets the minimum requirements for 53.2 entitlement to a service pension specified in section 424A.02 53.3 and which in its articles of incorporation or bylaws requires 53.4 service credit for a period of service of at least 20 years of 53.5 active service for a totally nonforfeitable service pension 53.6 shall determine the accrued liability of the special fund of the 53.7 firefighters' relief association relative to each activeor53.8deferredmember of the relief association, calculated 53.9 individually using the following table: 53.10 Cumulative Accrued 53.11 Year Liability 53.12 ............. ............. 53.13 1 $ 60 53.14 2 124 53.15 3 190 53.16 4 260 53.17 5 334 53.18 6 410 53.19 7 492 53.20 8 576 53.21 9 666 53.22 10 760 53.23 11 858 53.24 12 962 53.25 13 1070 53.26 14 1184 53.27 15 1304 53.28 16 1428 53.29 17 1560 53.30 18 1698 53.31 19 1844 53.32 20 2000 53.33 21 and thereafter 100 additional 53.34 per year 53.35 As set forth in the table the accrued liability for each 53.36 memberor deferred memberof the relief association corresponds 54.1 to the cumulative years of active service to the credit of the 54.2 member. The accrued liability of the special fund for each 54.3 activeor deferredmember is determined by multiplying the 54.4 accrued liability from the chart by the ratio of the lump sum 54.5 service pension amount currently provided for in the bylaws of 54.6 the relief association to a service pension of $100 per year of 54.7 service. If a member has fractional service as of December 31, 54.8 the figure for service credit to be used for the determination 54.9 of accrued liability pursuant to this section shall be rounded 54.10 to the nearest full year of service credit. The total accrued 54.11 liability of the special fund as of December 31 shall be the sum 54.12 of the accrued liability attributable to each activeor deferred54.13 member of the relief association. 54.14 To the extent that the state auditor considers it to be 54.15 necessary or practical, the state auditor may specify and issue 54.16 procedures, forms, or mathematical tables for use in performing 54.17 the calculations of the accrued liability for deferred members 54.18 pursuant to this subdivision. 54.19 Sec. 61. Minnesota Statutes 2002, section 115A.929, is 54.20 amended to read: 54.21 115A.929 [FEES; ACCOUNTING.] 54.22 Each political subdivision that provides for solid waste 54.23 management shall account for all revenue collected from waste 54.24 management fees, together with interest earned on revenue from 54.25 the fees, separately from other revenue collected by the 54.26 political subdivision and shall report revenue collected from 54.27 the fees and use of the revenue separately from other revenue 54.28 and use of revenue in any required financial report or audit. 54.29 Each political subdivision must file with the director, on or 54.30 before June 30 annually, the separate report of all revenue 54.31 collected from waste management fees, together with interest on 54.32 revenue from the fees, for the previous year. For the purposes 54.33 of this section, "waste management fees" means: 54.34 (1) all fees, charges, and surcharges collected under 54.35 sections 115A.919, 115A.921, and 115A.923; 54.36 (2) all tipping fees collected at waste management 55.1 facilities owned or operated by the political subdivision; 55.2 (3) all charges imposed by the political subdivision for 55.3 waste collection and management services; and 55.4 (4) any other fees, charges, or surcharges imposed on waste 55.5 or for the purpose of waste management, whether collected 55.6 directly from generators or indirectly through property taxes or 55.7 as part of utility or other charges for services provided by the 55.8 political subdivision. 55.9 Sec. 62. Minnesota Statutes 2002, section 116J.8771, is 55.10 amended to read: 55.11 116J.8771 [WAIVER.] 55.12 The capital access program is exempt from section 16C.05, 55.13 subdivision 2, paragraph(a), clause (5)(b). 55.14 [EFFECTIVE DATE.] This section is effective the day 55.15 following final enactment. 55.16 Sec. 63. Minnesota Statutes 2002, section 136F.77, 55.17 subdivision 3, is amended to read: 55.18 Subd. 3. [NO ABROGATION.] Nothing in this section shall 55.19 abrogate the provisions ofsections 43A.047 andsection 136F.581. 55.20 [EFFECTIVE DATE.] This section is effective the day 55.21 following final enactment. 55.22 Sec. 64. Minnesota Statutes 2002, section 179A.03, 55.23 subdivision 7, is amended to read: 55.24 Subd. 7. [ESSENTIAL EMPLOYEE.] "Essential employee" means 55.25 firefighters, peace officers subject to licensure under sections 55.26 626.84 to 626.863, 911 system and police and fire department 55.27 public safety dispatchers, guards at correctional facilities, 55.28 confidential employees, supervisory employees, assistant county 55.29 attorneys, assistant city attorneys, principals, and assistant 55.30 principals. However, for state employees, "essential employee" 55.31 means all employees in law enforcement, health care 55.32 professionals, health care nonprofessionals, correctional 55.33 guards, professional engineering, and supervisory collective 55.34 bargaining units, irrespective of severance, and no other 55.35 employees. For University of Minnesota employees, "essential 55.36 employee" means all employees in law enforcement, nursing 56.1 professional and supervisory units, irrespective of severance, 56.2 and no other employees. "Firefighters" means salaried employees 56.3 of a fire department whose duties include, directly or 56.4 indirectly, controlling, extinguishing, preventing, detecting, 56.5 or investigating fires. Employees for whom the state court 56.6 administrator is the negotiating employer are not essential 56.7 employees. 56.8 [EFFECTIVE DATE.] This section is effective July 1, 2003. 56.9 Sec. 65. Minnesota Statutes 2002, section 192.501, 56.10 subdivision 2, is amended to read: 56.11 Subd. 2. [TUITION AND TEXTBOOK REIMBURSEMENT GRANT 56.12 PROGRAM.] (a) The adjutant general shall establish a program to 56.13 provide tuition and textbook reimbursement grants to eligible 56.14 members of the Minnesota national guard within the limitations 56.15 of this subdivision. 56.16 (b) Eligibility is limited to a member of the national 56.17 guard who: 56.18 (1) is serving satisfactorily as defined by the adjutant 56.19 general; 56.20 (2) is attending a post-secondary educational institution, 56.21 as defined by section 136A.15, subdivision 6, including a 56.22 vocational or technical school operated or regulated by this 56.23 state or another state or province; and 56.24 (3) provides proof of satisfactory completion of 56.25 coursework, as defined by the adjutant general. 56.26 In addition, if a member of the Minnesota national guard is 56.27 killed in the line of state active service or federally funded 56.28 state active service, as defined in section 190.05, subdivisions 56.29 5a and 5b, the member's surviving spouse, and any surviving 56.30 dependent who has not yet reached 24 years of age, is eligible 56.31 for a tuition and textbook reimbursement grant. 56.32 The adjutant general may, within the limitations of this 56.33 paragraph and other applicable laws, determine additional 56.34 eligibility criteria for the grant, and must specify the 56.35 criteria in department regulations and publish changes as 56.36 necessary. 57.1 (c) The amount of a tuition and textbook reimbursement 57.2 grant must be specified on a schedule as determined and 57.3 published in department regulations by the adjutant general, but 57.4 is limited to a maximum of an amount equal to the greater of: 57.5 (1) 80 percent of the cost of tuition for lower division 57.6 programs in the college of liberal arts at the twin cities 57.7 campus of the University of Minnesota in the most recent 57.8 academic year; or 57.9 (2) 80 percent of the cost of tuition for the program in 57.10 which the person is enrolled at that Minnesota public 57.11 institution, or if that public institution is outside the state 57.12 of Minnesota, for the cost of a comparable program at the 57.13 University of Minnesota, except that in the case of a survivor 57.14 as defined in paragraph (b), the amount of the tuition and 57.15 textbook reimbursement grant for coursework satisfactorily 57.16 completed by the person is limited to 100 percent of the cost of 57.17 tuition for post-secondary courses at a Minnesota public 57.18 educational institution. 57.19 Paragraph (b) notwithstanding, a person is no longer 57.20 eligible for a grant under this subdivision once the person has 57.21 received grants under this subdivision for the equivalent of 208 57.22 quarter credits or 144 semester credits of coursework. 57.23 (d) Tuition and textbook reimbursement grants received 57.24 under this subdivision may not be considered by the Minnesota 57.25 higher education services office or by any other state board, 57.26 commission, or entity in determining a person's eligibility for 57.27 a scholarship or grant-in-aid under sections 136A.095 to 57.28 136A.1311. 57.29 (e) If a member fails to complete a term of enlistment 57.30 during which a tuition and textbook reimbursement grant was 57.31 paid, the adjutant general may seek to recoup a prorated amount 57.32 as determined by the adjutant general. 57.33(f) The adjutant general shall maintain records and report57.34any findings to the legislature by March 1, 2003, on the impact57.35of increasing the reimbursement amounts under paragraph (c)57.36during the period July 1, 2001, through December 31, 2002.58.1(g) This paragraph, paragraph (f), and the amendments made58.2by Laws 2001, First Special Session chapter 10 to paragraph (c)58.3expire June 30, 2003.58.4 Sec. 66. Minnesota Statutes 2002, section 197.608, is 58.5 amended to read: 58.6 197.608 [VETERANS SERVICE OFFICE GRANT PROGRAM.] 58.7 Subdivision 1. [GRANT PROGRAM.] A veterans service office 58.8 grant program is established to be administered by the 58.9 commissioner of veterans affairs consisting of grants to 58.10 counties to enable them to enhance the effectiveness of their 58.11 veterans service offices. 58.12 Subd. 2. [RULE DEVELOPMENT.] The commissionerof veterans58.13affairsshall consult with the Minnesota association of county 58.14 veterans service officers in formulating rules to implement the 58.15 grant program. 58.16 Subd. 2a. [GRANT CYCLE.] Counties may become eligible to 58.17 receive grants on a three-year rotating basis according to a 58.18 schedule to be developed and announced in advance by the 58.19 commissioner. The schedule must list no more than one-third of 58.20 the counties in each year of the three-year cycle. A county may 58.21 be considered for a grant only in the year of its listing in the 58.22 schedule. 58.23 Subd. 3. [ELIGIBILITY.] (a) To be eligible for a grant 58.24 under this program, a county must:58.25(1)employ a county veterans service officer as authorized 58.26 by sections 197.60 and 197.606, who is certified to serve in 58.27 this position by the commissionerof veterans affairs;. 58.28(2) submit a written plan for the proposed expenditures to58.29enhance the functioning of the county veterans service office in58.30accordance with the program rules; and58.31(3) apply for the grant according to procedures to be58.32established for this program by the commissioner and receive58.33written approval from the commissioner for the grant in advance58.34of making the proposed expenditures.58.35 (b) A county that employs a newly hired county veterans 58.36 service officer who is serving an initial probationary period 59.1 and who has not been certified by the commissioner is eligible 59.2 to receive a grant under subdivision 2a. 59.3 (c) Except for the situation described in paragraph (b), a 59.4 county whose veterans service officer does not receive 59.5 certification during any year of the three-year cycle is not 59.6 eligible to receive a grant during the remainder of that cycle 59.7 or the next three-year cycle. 59.8 Subd. 4. [GRANTAPPLICATIONPROCESS.] (a)A grant59.9application must be submitted to the department of veterans59.10affairs according to procedures to be established by the59.11commissioner. The grant application must include a specific59.12description of the plan for enhancing the operation of the59.13county veterans service office.The commissioner shall determine 59.14 the process for awarding grants. A grant may be used only for 59.15 the purpose of enhancing the operations of the county veterans 59.16 service office. 59.17 (b) The commissioner shall provide a list of qualifying 59.18 uses for grant expenditures as developed in subdivision 5 and 59.19 shall approve a grantapplicationonlyif it meets the criteria59.20for eligibility as established and announced by the commissioner59.21 for a qualifying use and if there are sufficient funds remaining 59.22 in the grant program to cover the full amount of the grant.The59.23commissioner may request modification of a plan. If the59.24commissioner rejects a grant application, written reasons for59.25the rejection must be provided to the applicant county and the59.26county may modify the application and resubmit it.59.27 Subd. 5. [QUALIFYING USES.] The commissionerof veterans59.28affairsshalldetermine whether the plan specified in the grant59.29application will enable the applicant county to enhance the59.30effectiveness of its county veterans office.59.31Notwithstanding subdivision 3, clause (1), a county may59.32apply for and use a grant for the training and education59.33required by the commissioner for a newly employed county59.34veterans service officer's certificate, or for the continuing59.35education of other staffconsult with the Minnesota association 59.36 of county veterans service officers in developing a list of 60.1 qualifying uses for grants awarded under this program. 60.2 Subd. 6. [GRANT AMOUNT.] The amount of each grant must be 60.3 determined by the commissionerof veterans affairs, and may not 60.4 exceedthe lesser of:60.5(1) the amount specified in the grant application to be60.6expended on the plan for enhancing the effectiveness of the60.7county veterans service office; or60.8(2) the county's share of the total funds available under60.9the program, determined in the following manner:60.10 (i) $1,400, if the county's veteran population is less than 60.11 1,000, the county's grant share shall be $2,000; 60.12 (ii) $2,800, if the county's veteran population is 1,000 or 60.13 more but less than 3,000, the county's grant share shall be60.14$4,000; 60.15 (iii) $4,200, if the county's veteran population is 3,000 60.16 or more but less then 10,000, the county's grant share shall be60.17$6,000; or 60.18 (iv) $5,600, if the county's veteran population is 10,000 60.19 or more, the county's grant share shall be $8,000. 60.20In any year, only one-half of the counties in each of the60.21four veteran population categories (i) to (iv) may be awarded60.22grants. Grants shall be awarded on a first-come first-served60.23basis to counties submitting applications which meet the60.24commissioner's criteria as established in the rules. Any county60.25not receiving a grant in any given year shall receive priority60.26consideration for a grant the following year.60.27In any year, after a period of time to be determined by the60.28commissioner, any amounts remaining from undistributed county60.29grant shares may be reallocated to the other counties which have60.30submitted qualifying application.60.31 The veteran population of each county shall be determined 60.32 by the figure supplied by the United States Department of 60.33 Veterans Affairs, as adopted by the commissioner. 60.34 Subd. 7. [RECAPTURE.] If a county fails to use the grant 60.35 for the qualified use approved by the commissioner, the 60.36 commissioner shall seek recovery of the grant from the county 61.1 and the county must repay the grant amount. 61.2 Sec. 67. Minnesota Statutes 2002, section 240.03, is 61.3 amended to read: 61.4 240.03 [COMMISSION POWERS AND DUTIES.] 61.5 The commission has the following powers and duties: 61.6 (1) to regulate horse racing in Minnesota to ensure that it 61.7 is conducted in the public interest; 61.8 (2) to issue licenses as provided in this chapter; 61.9 (3) to enforce all laws and rules governing horse racing; 61.10 (4) to collect and distribute all taxes provided for in 61.11 this chapter; 61.12 (5) to conduct necessary investigations and inquiries and 61.13 compel the submission of information, documents, and records it 61.14 deems necessary to carry out its duties; 61.15 (6) to supervise the conduct of pari-mutuel betting on 61.16 horse racing; 61.17 (7) to employ and supervise personnel under this chapter; 61.18 (8) to determine the number of racing days to be held in 61.19 the state and at each licensed racetrack;and61.20 (9) to take all necessary steps to ensure the integrity of 61.21 racing in Minnesota.; and 61.22 (10) to impose fees on the racing and card playing 61.23 industries sufficient to recover the operating costs of the 61.24 commission with the approval of the legislature according to 61.25 section 16A.1283. Notwithstanding section 16A.1283, when the 61.26 legislature is not in session, the commissioner of finance may 61.27 grant interim approval for any new fees or adjustments to 61.28 existing fees that are not statutorily specified, until such 61.29 time as the legislature reconvenes and acts upon the new fees or 61.30 adjustments. As part of its biennial budget request, the 61.31 commission must propose changes to its fees that will be 61.32 sufficient to recover the operating costs of the commission. 61.33 Sec. 68. Minnesota Statutes 2002, section 240.10, is 61.34 amended to read: 61.35 240.10 [LICENSE FEES.] 61.36 The fee for a class A license is $10,000 per year. The fee 62.1 for a class B license is $100 for each assigned racing day on 62.2 which racing is actually conducted, and $50 for each day on 62.3 which simulcasting is authorized and actually takes place, plus 62.4 $10,000 per year if the class B license includes authorization 62.5 to operate a card club. The fee for a class D license is $50 62.6 for each assigned racing day on which racing is actually 62.7 conducted. Fees imposed on class B and class D licenses must be 62.8 paid to the commission at a time and in a manner as provided by 62.9 rule of the commission. 62.10 The commission shall by rule establish an annual license 62.11 fee for each occupation it licenses under section 240.08 but no 62.12 annual fee for a class C license may exceed $100. 62.13License fee payments received must be paid by the62.14commission to the state treasurer for deposit in the general62.15fund.62.16 Sec. 69. Minnesota Statutes 2002, section 240.15, 62.17 subdivision 6, is amended to read: 62.18 Subd. 6. [DISPOSITION OF PROCEEDS; ACCOUNT.] The 62.19 commission shall distribute all money received under this 62.20 section, and all money received from license fees and fines it 62.21 collects,as follows:according to this subdivision. All money 62.22 designated for deposit in the Minnesota breeders fund must be 62.23 paid into that fund for distribution under section 240.18 except 62.24 that all money generated by full racing card simulcasts must be 62.25 distributed as provided in section 240.18, subdivisions 2, 62.26 paragraph (d), clauses (1), (2), and (3); and 3. Revenue from 62.27 an admissions tax imposed under subdivision 1 must be paid to 62.28 the local unit of government at whose request it was imposed, at 62.29 times and in a manner the commission determines.All other62.30revenuesTaxes received under this sectionby the commission,62.31and all license fees, fines, and other revenue it receives,and 62.32 fines collected under section 240.22 must be paid to the state 62.33 treasurer for deposit in the general fund. All revenues from 62.34 licenses and other fees imposed by the commission must be 62.35 deposited in the state treasury and credited to a racing and 62.36 card playing regulation account in the special revenue fund. 63.1 Receipts in this account are available for the operations of the 63.2 commission up to the amount authorized in biennial 63.3 appropriations from the legislature. 63.4 Sec. 70. Minnesota Statutes 2002, section 240.155, 63.5 subdivision 1, is amended to read: 63.6 Subdivision 1. [REIMBURSEMENT ACCOUNT CREDIT.] Money 63.7 received by the commission as reimbursement for the costs of 63.8 services provided byassistantveterinarians, stewards, and 63.9 medical testing of horses must be deposited in the state 63.10 treasury and credited to a racing reimbursement account, except 63.11 as provided under subdivision 2. Receipts are appropriated to 63.12 the commission to pay the costs of providing the services. 63.13 Sec. 71. Minnesota Statutes 2002, section 240A.03, 63.14 subdivision 10, is amended to read: 63.15 Subd. 10. [USE AGREEMENTS AND FEES.] The commission may 63.16 lease, license, or enter into agreements and may fix, alter, 63.17 charge, and collect rentals, fees, and charges to persons for 63.18 the use, occupation, and availability of part or all of any 63.19 premises, property, or facilities under its ownership, 63.20 operation, or control.Fees charged by the commission are not63.21subject to section 16A.1285.The commission may also impose 63.22 other fees it deems appropriate with the approval of the 63.23 legislature according to section 16A.1283. Notwithstanding 63.24 section 16A.1283, when the legislature is not in session, the 63.25 commissioner of finance may grant interim approval of the fees, 63.26 until such time as the legislature reconvenes and acts upon the 63.27 fees. Revenues generated by the commission under this section 63.28 must be sufficient to offset the biennial appropriations it 63.29 receives from the legislature and must be deposited to the state 63.30 treasury and credited to the general fund. A use agreement may 63.31 provide that the other contracting party has exclusive use of 63.32 the premises at the times agreed upon. As part of its biennial 63.33 budget request, the commission must propose changes to its fees 63.34 that will be sufficient to recover the direct appropriation to 63.35 the commission. 63.36 Sec. 72. Minnesota Statutes 2002, section 240A.03, 64.1 subdivision 15, is amended to read: 64.2 Subd. 15. [ADVERTISING.] The commission may accept paid 64.3 advertising in its publications. Funds received from 64.4 advertisingare annually appropriated to the commission for its64.5publications. The commission must annually report the amount of64.6funds received under this subdivision to the chair of the house64.7of representatives ways and means and senate finance64.8committeesmust be deposited to the state treasury and credited 64.9 to the general fund. 64.10 Sec. 73. Minnesota Statutes 2002, section 240A.04, is 64.11 amended to read: 64.12 240A.04 [PROMOTION AND DEVELOPMENT OF AMATEUR SPORTS.] 64.13 In addition to the powers and duties granted under section 64.14 240A.03, the commissionshallmay: 64.15 (1) promote the development of olympic training centers; 64.16 (2) promote physical fitness by promoting participation in 64.17 sports; 64.18 (3) develop, foster, and coordinate physical fitness 64.19 services and programs; 64.20 (4) sponsor amateur sport workshops, clinics, and 64.21 conferences; 64.22 (5) provide recognition for outstanding developments, 64.23 achievements, and contributions to amateur sports; 64.24 (6) stimulate and promote amateur sport research; 64.25 (7) collect, disseminate, and communicate amateur sport 64.26 information; 64.27 (8) promote amateur sport and physical fitness programs in 64.28 schools and local communities; 64.29 (9) develop programs to promote personal health and 64.30 physical fitness by participation in amateur sports in 64.31 cooperation with medical, dental, sports medicine, and similar 64.32 professional societies; 64.33 (10) promote the development of recreational amateur sport 64.34 opportunities and activities in the state, including the means 64.35 of facilitating acquisition, financing, construction, and 64.36 rehabilitation of sports facilities for the holding of amateur 65.1 sporting events; 65.2 (11) promote national and international amateur sport 65.3 competitions and events; 65.4 (12) sanction or sponsor amateur sport competition; 65.5 (13) take membership in regional or national amateur sports 65.6 associations or organizations; and 65.7 (14) promote the mainstreaming and normalization of people 65.8 with physical disabilities and visual and hearing impairments in 65.9 amateur sports. 65.10 Sec. 74. Minnesota Statutes 2002, section 240A.06, 65.11 subdivision 1, is amended to read: 65.12 Subdivision 1. [SPONSORSHIP REQUIRED.] The commission 65.13shallmay sponsor and sanction a series of statewide amateur 65.14 athletic games patterned after the winter and summer Olympic 65.15 Games, with variations as required by facilities, equipment, and 65.16 expertise, and as necessary to include people with physical 65.17 disabilities and visual and hearing impairments. The games may 65.18 be held annually beginning in 1989, if money and facilities are 65.19 available, unless the time of the games would conflict with 65.20 other sporting events as the commission determines. 65.21 Sec. 75. Minnesota Statutes 2002, section 256B.435, 65.22 subdivision 2a, is amended to read: 65.23 Subd. 2a. [DURATION AND TERMINATION OF CONTRACTS.] (a) All 65.24 contracts entered into under this section are for a term of one 65.25 year. Either party may terminate this contract at any time 65.26 without cause by providing 90 calendar days' advance written 65.27 notice to the other party. Notwithstanding section 16C.05, 65.28 subdivisions 2, paragraph(a)(b), and 5, if neither party 65.29 provides written notice of termination, the contract shall be 65.30 renegotiated for additional one-year terms or the terms of the 65.31 existing contract will be extended for one year. The provisions 65.32 of the contract shall be renegotiated annually by the parties 65.33 prior to the expiration date of the contract. The parties may 65.34 voluntarily renegotiate the terms of the contract at any time by 65.35 mutual agreement. 65.36 (b) If a nursing facility fails to comply with the terms of 66.1 a contract, the commissioner shall provide reasonable notice 66.2 regarding the breach of contract and a reasonable opportunity 66.3 for the facility to come into compliance. If the facility fails 66.4 to come into compliance or to remain in compliance, the 66.5 commissioner may terminate the contract. If a contract is 66.6 terminated, provisions of section 256B.48, subdivision 1a, shall 66.7 apply. 66.8 [EFFECTIVE DATE.] This section is effective the day 66.9 following final enactment. 66.10 Sec. 76. Minnesota Statutes 2002, section 268.186, is 66.11 amended to read: 66.12 268.186 [RECORDS.] 66.13 (a) Each employer shall keep true and accurate records for 66.14 the periods of time and containing the information the 66.15 commissioner may require. For the purpose of administering this 66.16 chapter, the commissioner has the power to examine, or cause to 66.17 be supplied or copied, any books, correspondence, papers, 66.18 records, or memoranda that are relevant, whether the books, 66.19 correspondence, papers, records, or memoranda are the property 66.20 of or in the possession of the employer or any other person at 66.21 any reasonable time and as often as may be necessary. 66.22 (b) The commissioner may make summaries, compilations, 66.23 photographs, duplications, or reproductions of any records, or 66.24 reports that the commissioner considers advisable for the 66.25 preservation of the information contained therein. Any 66.26 summaries, compilations, photographs, duplications, or 66.27 reproductions shall be admissible in any proceeding under this 66.28 chapter.Regardless of any restrictions contained in section66.2916B.50,The commissioner may duplicate records, reports, 66.30 summaries, compilations, instructions, determinations, or any 66.31 other written or recorded matter pertaining to the 66.32 administration of this chapter. 66.33 (c) Regardless of any law to the contrary, the commissioner 66.34 may provide for the destruction of any records, reports, or 66.35 reproductions thereof, or other papers, that are more than two 66.36 years old, and that are no longer necessary for determining 67.1 employer liability or an applicant's unemployment benefit rights 67.2 or for the administration of this chapter, including any 67.3 required audit. The commissioner may provide for the 67.4 destruction or disposition of any record, report, or other paper 67.5 that has been photographed, duplicated, or reproduced. 67.6 [EFFECTIVE DATE.] This section is effective the day 67.7 following final enactment. 67.8 Sec. 77. Minnesota Statutes 2002, section 270.052, is 67.9 amended to read: 67.10 270.052 [AGREEMENT WITH INTERNAL REVENUE SERVICE.] 67.11 Pursuant to section 270B.12, the commissioner may enter 67.12 into an agreement with the Internal Revenue Service to identify 67.13 taxpayers who have refunds due from the department of revenue 67.14 and liabilities owing to the Internal Revenue Service. In 67.15 accordance with the procedures established in the agreement, the 67.16 Internal Revenue Service may levy against the refunds to be paid 67.17 by the department of revenue. For each refund levied upon, the 67.18 commissioner shall first deduct from the refund a fee of $20, 67.19 and then remit the refund or the amount of the levy, whichever 67.20 is less, to the Internal Revenue Service. The proceeds of fees 67.21 shall be deposited into the department of revenue recapture 67.22 revolving fund under section 270A.07, subdivision 1. 67.23 [EFFECTIVE DATE.] This section is effective the day 67.24 following final enactment. 67.25 Sec. 78. Minnesota Statutes 2002, section 270.44, is 67.26 amended to read: 67.27 270.44 [CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.] 67.28The board may establish reasonable fees or charges for67.29courses, examinations or materials, the proceeds of which shall67.30be used to finance the activities and operation of the board.67.31 The board shall charge the following fees: 67.32 (1) $105 for a senior accredited Minnesota assessor 67.33 license; 67.34 (2) $80 for an accredited Minnesota assessor license; 67.35 (3) $65 for a certified Minnesota assessor specialist 67.36 license; 68.1 (4) $55 for a certified Minnesota assessor license; 68.2 (5) $50 for a course challenge examination; 68.3 (6) $35 for grading a form appraisal; 68.4 (7) $60 for grading a narrative appraisal; 68.5 (8) $30 for a reinstatement fee; 68.6 (9) $25 for a record retention fee; 68.7 (10) $20 for an educational transcript; and 68.8 (11) $30 for all retests of board-sponsored educational 68.9 courses. 68.10 [EFFECTIVE DATE.] This section is effective for license 68.11 terms beginning on or after July 1, 2004, and for all other fees 68.12 imposed on or after July 1, 2004. 68.13 Sec. 79. Minnesota Statutes 2002, section 270A.07, 68.14 subdivision 1, is amended to read: 68.15 Subdivision 1. [NOTIFICATION REQUIREMENT.] Any claimant 68.16 agency, seeking collection of a debt through setoff against a 68.17 refund due, shall submit to the commissioner information 68.18 indicating the amount of each debt and information identifying 68.19 the debtor, as required by section 270A.04, subdivision 3. 68.20 For each setoff of a debt against a refund due, the 68.21 commissioner shall charge a fee of$10$15. The proceeds of 68.22 fees shall be allocated by depositing$2.55$4 of each$10$15 68.23 fee collected into a department of revenue recapture revolving 68.24 fund and depositing the remaining balance into the general 68.25 fund. The sums deposited into the revolving fund are 68.26 appropriated to the commissioner for the purpose of 68.27 administering the Revenue Recapture Act. 68.28 The claimant agency shall notify the commissioner when a 68.29 debt has been satisfied or reduced by at least $200 within 30 68.30 days after satisfaction or reduction. 68.31 [EFFECTIVE DATE.] This section is effective for refund 68.32 setoffs after June 30, 2003. 68.33 Sec. 80. Minnesota Statutes 2002, section 306.95, is 68.34 amended to read: 68.35 306.95 [DUTIES OF THE COUNTY AUDITOR.] 68.36 Subdivision 1. [NOTIFICATIONOF STATE AUDITOR.] Any county 69.1 auditor finding evidence of violations of this chapter when 69.2 reviewing reports or bonds filed by any person, firm, 69.3 partnership, association, or corporation operating a cemetery, 69.4 mausoleum, or columbarium must notify thestate auditor's office69.5 county attorney in a timely manner of such finding. 69.6 Subd. 2. [ANNUAL LETTER.] Every county auditor must file 69.7 an annual letter by May 31 with thestate auditor's office69.8 county attorney disclosing whether the county auditor has 69.9 detected any indications of violations of this chapter in the 69.10 reports or bonds which were filed or should have been filed. If 69.11 the county auditor has not detected from the information 69.12 supplied to the county auditor any such indications, that fact 69.13 must be reported to thestate auditorcounty attorney in the 69.14 annual letter. 69.15 Sec. 81. [326.992] [BOND REQUIREMENT; GAS, HEATING, 69.16 VENTILATION, AIR CONDITIONING, REFRIGERATION (G/HVACR) 69.17 CONTRACTORS.] 69.18 (a) A person contracting to do gas, heating, ventilation, 69.19 cooling, air conditioning, fuel burning, or refrigeration work 69.20 must give bond to the state in the amount of $25,000 for all 69.21 work entered into within the state. The bond must be for the 69.22 benefit of persons suffering financial loss by reason of the 69.23 contractor's failure to comply with the requirements of the 69.24 State Mechanical Code. A bond given to the state must be filed 69.25 with the commissioner of administration and is in lieu of all 69.26 other bonds to any political subdivision required for work 69.27 covered by this section. The bond must be written by a 69.28 corporate surety licensed to do business in the state. 69.29 (b) The commissioner of administration may charge each 69.30 person giving bond under this section an annual bond filing fee 69.31 of $25. The money must be deposited in the state government 69.32 special revenue fund and is appropriated to the commissioner to 69.33 cover the cost of administering the bond program. 69.34 Sec. 82. Minnesota Statutes 2002, section 349.12, is 69.35 amended by adding a subdivision to read: 69.36 Subd. 11a. [DISTRIBUTOR SALESPERSON.] "Distributor 70.1 salesperson" means a person who in any manner receives orders 70.2 for gambling equipment or who solicits a licensed, exempt, or 70.3 excluded organization to purchase gambling equipment from a 70.4 licensed distributor. 70.5 Sec. 83. Minnesota Statutes 2002, section 349.12, 70.6 subdivision 25, is amended to read: 70.7 Subd. 25. [LAWFUL PURPOSE.] (a) "Lawful purpose" means one 70.8 or more of the following: 70.9 (1) any expenditure by or contribution to a 501(c)(3) or 70.10 festival organization, as defined in subdivision 15a, provided 70.11 that the organization and expenditure or contribution are in 70.12 conformity with standards prescribed by the board under section 70.13 349.154, which standards must apply to both types of 70.14 organizations in the same manner and to the same extent; 70.15 (2) a contribution to an individual or family suffering 70.16 from poverty, homelessness, or physical or mental disability, 70.17 which is used to relieve the effects of that poverty, 70.18 homelessness, or disability; 70.19 (3) a contribution to an individual for treatment for 70.20 delayed posttraumatic stress syndrome or a contribution to a 70.21 program recognized by the Minnesota department of human services 70.22 for the education, prevention, or treatment of compulsive 70.23 gambling; 70.24 (4) a contribution to or expenditure on a public or private 70.25 nonprofit educational institution registered with or accredited 70.26 by this state or any other state; 70.27 (5) a contribution to a scholarship fund for defraying the 70.28 cost of education to individuals where the funds are awarded 70.29 through an open and fair selection process; 70.30 (6) activities by an organization or a government entity 70.31 which recognize humanitarian or military service to the United 70.32 States, the state of Minnesota, or a community, subject to rules 70.33 of the board, provided that the rules must not include mileage 70.34 reimbursements in the computation of the per occasion 70.35 reimbursement limit and must impose no aggregate annual limit on 70.36 the amount of reasonable and necessary expenditures made to 71.1 support: 71.2 (i) members of a military marching or color guard unit for 71.3 activities conducted within the state; 71.4 (ii) members of an organization solely for services 71.5 performed by the members at funeral services; or 71.6 (iii) members of military marching, color guard, or honor 71.7 guard units may be reimbursed for participating in color guard, 71.8 honor guard, or marching unit events within the state or states 71.9 contiguous to Minnesota at a per participant rate of up to $35 71.10 per occasion; 71.11 (7) recreational, community, and athletic facilities and 71.12 activities intended primarily for persons under age 21, provided 71.13 that such facilities and activities do not discriminate on the 71.14 basis of gender and the organization complies with section 71.15 349.154; 71.16 (8) payment of local taxes authorized under this chapter, 71.17 taxes imposed by the United States on receipts from lawful 71.18 gambling, the taxes imposed by section 297E.02, subdivisions 1, 71.19 4, 5, and 6, and the tax imposed on unrelated business income by 71.20 section 290.05, subdivision 3; 71.21 (9) payment of real estate taxes and assessments on 71.22 permitted gambling premises wholly owned by the licensed 71.23 organization paying the taxes, or wholly leased by a licensed 71.24 veterans organization under a national charter recognized under 71.25 section 501(c)(19) of the Internal Revenue Code, not to exceed: 71.26 (i) for premises used for bingo, the amount that an 71.27 organization may expend under board rules on rent for bingo; and 71.28 (ii) $35,000 per year for premises used for other forms of 71.29 lawful gambling; 71.30 (10) a contribution to the United States, this state or any 71.31 of its political subdivisions, or any agency or instrumentality 71.32 thereof other than a direct contribution to a law enforcement or 71.33 prosecutorial agency; 71.34 (11) a contribution to or expenditure by a nonprofit 71.35 organization which is a church or body of communicants gathered 71.36 in common membership for mutual support and edification in 72.1 piety, worship, or religious observances; 72.2 (12) payment of the reasonable costs of an audit required 72.3 in section 297E.06, subdivision 4, provided the annual audit is 72.4 filed in a timely manner with the department of revenue; 72.5 (13) a contribution to or expenditure on a wildlife 72.6 management project that benefits the public at-large, provided 72.7 that the state agency with authority over that wildlife 72.8 management project approves the project before the contribution 72.9 or expenditure is made; 72.10 (14) expenditures, approved by the commissioner of natural 72.11 resources, by an organization for grooming and maintaining 72.12 snowmobile trails and all-terrain vehicle trails that are (1) 72.13 grant-in-aid trails established under section 85.019, or (2) 72.14 other trails open to public use, including purchase or lease of 72.15 equipment for this purpose; or 72.16 (15) conducting nutritional programs, food shelves, and 72.17 congregate dining programs primarily for persons who are age 62 72.18 or older or disabled; 72.19 (16) a contribution to a community arts organization, or an 72.20 expenditure to sponsor arts programs in the community, including 72.21 but not limited to visual, literary, performing, or musical 72.22 arts; 72.23 (17) payment of heat, water, sanitation, telephone, and 72.24 other utility bills for a building owned or leased by, and used 72.25 as the primary headquarters of, a veterans organization;or72.26 (18) expenditure by a veterans organization of up to $5,000 72.27 in a calendar year in net costs to the organization for meals 72.28 and other membership events, limited to members and spouses, 72.29 held in recognition of military service; or 72.30 (19) payment of fees authorized under this chapter imposed 72.31 by the state of Minnesota to conduct lawful gambling in 72.32 Minnesota. 72.33 (b) Notwithstanding paragraph (a), "lawful purpose" does 72.34 not include: 72.35 (1) any expenditure made or incurred for the purpose of 72.36 influencing the nomination or election of a candidate for public 73.1 office or for the purpose of promoting or defeating a ballot 73.2 question; 73.3 (2) any activity intended to influence an election or a 73.4 governmental decision-making process; 73.5 (3) the erection, acquisition, improvement, expansion, 73.6 repair, or maintenance of real property or capital assets owned 73.7 or leased by an organization, unless the board has first 73.8 specifically authorized the expenditures after finding that (i) 73.9 the real property or capital assets will be used exclusively for 73.10 one or more of the purposes in paragraph (a); (ii) with respect 73.11 to expenditures for repair or maintenance only, that the 73.12 property is or will be used extensively as a meeting place or 73.13 event location by other nonprofit organizations or community or 73.14 service groups and that no rental fee is charged for the use; 73.15 (iii) with respect to expenditures, including a mortgage payment 73.16 or other debt service payment, for erection or acquisition only, 73.17 that the erection or acquisition is necessary to replace with a 73.18 comparable building, a building owned by the organization and 73.19 destroyed or made uninhabitable by fire or natural disaster, 73.20 provided that the expenditure may be only for that part of the 73.21 replacement cost not reimbursed by insurance; (iv) with respect 73.22 to expenditures, including a mortgage payment or other debt 73.23 service payment, for erection or acquisition only, that the 73.24 erection or acquisition is necessary to replace with a 73.25 comparable building a building owned by the organization that 73.26 was acquired from the organization by eminent domain or sold by 73.27 the organization to a purchaser that the organization reasonably 73.28 believed would otherwise have acquired the building by eminent 73.29 domain, provided that the expenditure may be only for that part 73.30 of the replacement cost that exceeds the compensation received 73.31 by the organization for the building being replaced; or (v) with 73.32 respect to an expenditure to bring an existing building into 73.33 compliance with the Americans with Disabilities Act under item 73.34 (ii), an organization has the option to apply the amount of the 73.35 board-approved expenditure to the erection or acquisition of a 73.36 replacement building that is in compliance with the Americans 74.1 with Disabilities Act; 74.2 (4) an expenditure by an organization which is a 74.3 contribution to a parent organization, foundation, or affiliate 74.4 of the contributing organization, if the parent organization, 74.5 foundation, or affiliate has provided to the contributing 74.6 organization within one year of the contribution any money, 74.7 grants, property, or other thing of value; 74.8 (5) a contribution by a licensed organization to another 74.9 licensed organization unless the board has specifically 74.10 authorized the contribution. The board must authorize such a 74.11 contribution when requested to do so by the contributing 74.12 organization unless it makes an affirmative finding that the 74.13 contribution will not be used by the recipient organization for 74.14 one or more of the purposes in paragraph (a); or 74.15 (6) a contribution to a statutory or home rule charter 74.16 city, county, or town by a licensed organization with the 74.17 knowledge that the governmental unit intends to use the 74.18 contribution for a pension or retirement fund. 74.19 Sec. 84. Minnesota Statutes 2002, section 349.151, 74.20 subdivision 4, is amended to read: 74.21 Subd. 4. [POWERS AND DUTIES.] (a) The board has the 74.22 following powers and duties: 74.23 (1) to regulate lawful gambling to ensure it is conducted 74.24 in the public interest; 74.25 (2) to issue licenses to organizations, 74.26 distributors, distributor salespersons, bingo halls, 74.27 manufacturers, and gambling managers; 74.28 (3) to collect and deposit license, permit, and 74.29 registration fees due under this chapter; 74.30 (4) to receive reports required by this chapter and inspect 74.31 all premises, records, books, and other documents of 74.32 organizations, distributors, manufacturers, and bingo halls to 74.33 insure compliance with all applicable laws and rules; 74.34 (5) to make rules authorized by this chapter; 74.35 (6) to register gambling equipment and issue registration 74.36 stamps; 75.1 (7) to provide by rule for the mandatory posting by 75.2 organizations conducting lawful gambling of rules of play and 75.3 the odds and/or house percentage on each form of lawful 75.4 gambling; 75.5 (8) to report annually to the governor and legislature on 75.6 its activities and on recommended changes in the laws governing 75.7 gambling; 75.8 (9) to impose civil penalties of not more than $500 per 75.9 violation on organizations, distributors,employees eligible to75.10make sales on behalf of adistributor salespersons, 75.11 manufacturers, bingo halls, and gambling managers for failure to 75.12 comply with any provision of this chapter or any rule or order 75.13 of the board; 75.14 (10) to issue premises permits to organizations licensed to 75.15 conduct lawful gambling; 75.16 (11) to delegate to the director the authority to issue or 75.17 deny license and premises permit applications and renewals under 75.18 criteria established by the board; 75.19 (12) to suspend or revoke licenses and premises permits of 75.20 organizations, distributors, distributor salespersons, 75.21 manufacturers, bingo halls, or gambling managers as provided in 75.22 this chapter; 75.23 (13) to register employees of organizations licensed to 75.24 conduct lawful gambling; 75.25 (14) to require fingerprints from persons determined by 75.26 board rule to be subject to fingerprinting; 75.27 (15) to delegate to a compliance review group of the board 75.28 the authority to investigate alleged violations, issue consent 75.29 orders, and initiate contested cases on behalf of the board; 75.30 (16) to order organizations, distributors, distributor 75.31 salespersons, manufacturers, bingo halls, and gambling managers 75.32 to take corrective actions; and 75.33 (17) to take all necessary steps to ensure the integrity of 75.34 and public confidence in lawful gambling. 75.35 (b) The board, or director if authorized to act on behalf 75.36 of the board, may by citation assess any organization, 76.1 distributor, employee eligible to make sales on behalf of a 76.2 distributor, manufacturer, bingo hall licensee, or gambling 76.3 manager a civil penalty of not more than $500 per violation for 76.4 a failure to comply with any provision of this chapter or any 76.5 rule adopted or order issued by the board. Any organization, 76.6 distributor, bingo hall licensee, gambling manager, or 76.7 manufacturer assessed a civil penalty under this paragraph may 76.8 request a hearing before the board. Appeals of citations 76.9 imposing a civil penalty are not subject to the provisions of 76.10 the Administrative Procedure Act. 76.11 (c) Allfees andpenalties received by the board must be 76.12 deposited in the general fund. 76.13 (d) All fees imposed by the board under sections 349.16 to 76.14 349.165 must be deposited in the state treasury and credited to 76.15 a lawful gambling regulation account in the special revenue fund. 76.16 Receipts in this account are available for the operations of the 76.17 board up to the amount authorized in biennial appropriations 76.18 from the legislature. 76.19 Sec. 85. Minnesota Statutes 2002, section 349.151, 76.20 subdivision 4b, is amended to read: 76.21 Subd. 4b. [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 76.22 The board may by rule authorize but not require the use of 76.23 pull-tab dispensing devices. 76.24 (b) Rules adopted under paragraph (a): 76.25 (1) must limit the number of pull-tab dispensing devices on 76.26 any permitted premises to three; and 76.27 (2) must limit the use of pull-tab dispensing devices to a 76.28 permitted premises which is (i) a licensed premises for on-sales 76.29 of intoxicating liquor or 3.2 percent malt beverages; or (ii) a 76.30 licensed bingo hall that allows gambling only by persons 18 76.31 years or older. 76.32 (c) Notwithstanding rules adopted under paragraph (b), 76.33 pull-tab dispensing devices may be used in establishments 76.34 licensed for the off-sale of intoxicating liquor, other than 76.35 drugstores and general food stores licensed under section 76.36 340A.405, subdivision 1. 77.1(d) The director may charge a manufacturer a fee of up to77.2$5,000 per pull-tab dispensing device to cover the costs of77.3services provided by an independent testing laboratory to77.4perform testing and analysis of pull-tab dispensing devices.77.5The director shall deposit in a separate account in the state77.6treasury all money the director receives as reimbursement for77.7the costs of services provided by independent testing77.8laboratories that have entered into contracts with the state to77.9perform testing and analysis of pull-tab dispensing devices.77.10Money in the account is appropriated to the director to pay the77.11costs of services under those contracts.77.12 Sec. 86. Minnesota Statutes 2002, section 349.155, 77.13 subdivision 3, is amended to read: 77.14 Subd. 3. [MANDATORY DISQUALIFICATIONS.] (a) In the case of 77.15 licenses for manufacturers, distributors, distributor 77.16 salespersons, bingo halls, and gambling managers, the board may 77.17 not issue or renew a license under this chapter, and shall 77.18 revoke a license under this chapter, if the applicant or 77.19 licensee, or a director, officer, partner, governor, or person 77.20 in a supervisory or management position of the applicant or 77.21 licensee, or an employee eligible to make sales on behalf of the77.22applicant or licensee: 77.23 (1) has ever been convicted of a felony or a crime 77.24 involving gambling; 77.25 (2) has ever been convicted of (i) assault, (ii) a criminal 77.26 violation involving the use of a firearm, or (iii) making 77.27 terroristic threats; 77.28 (3) is or has ever been connected with or engaged in an 77.29 illegal business; 77.30 (4) owes $500 or more in delinquent taxes as defined in 77.31 section 270.72; 77.32 (5) had a sales and use tax permit revoked by the 77.33 commissioner of revenue within the past two years; or 77.34 (6) after demand, has not filed tax returns required by the 77.35 commissioner of revenue. The board may deny or refuse to renew 77.36 a license under this chapter, and may revoke a license under 78.1 this chapter, if any of the conditions in this paragraph are 78.2 applicable to an affiliate or direct or indirect holder of more 78.3 than a five percent financial interest in the applicant or 78.4 licensee. 78.5 (b) In the case of licenses for organizations, the board 78.6 may not issue or renew a license under this chapter, and shall 78.7 revoke a license under this chapter, if the organization, or an 78.8 officer or member of the governing body of the organization: 78.9 (1) has been convicted of a felony or gross misdemeanor 78.10 within the five years before the issuance or renewal of the 78.11 license; 78.12 (2) has ever been convicted of a crime involving gambling; 78.13 or 78.14 (3) has had a license issued by the board or director 78.15 permanently revoked for violation of law or board rule. 78.16 Sec. 87. Minnesota Statutes 2002, section 349.16, 78.17 subdivision 6, is amended to read: 78.18 Subd. 6. [LICENSECLASSIFICATIONSFEES.]The board may78.19issue four classes of organization licenses: a class A license78.20authorizing all forms of lawful gambling; a class B license78.21authorizing all forms of lawful gambling except bingo; a class C78.22license authorizing bingo only, or bingo and pull-tabs if the78.23gross receipts for any combination of bingo and pull-tabs does78.24not exceed $50,000 per year; and a class D license authorizing78.25raffles only.The board shallnot charge a fee for an78.26organizationimpose a fee of $100 for an organization's initial 78.27 license application. There is no charge for a renewal license. 78.28 Sec. 88. Minnesota Statutes 2002, section 349.161, 78.29 subdivision 1, is amended to read: 78.30 Subdivision 1. [PROHIBITED ACTS; LICENSES REQUIRED.] (a) 78.31 No person may: 78.32 (1) sell, offer for sale, or furnish gambling equipment for 78.33 use within the state other than for lawful gambling exempt or 78.34 excluded from licensing, except to an organization licensed for 78.35 lawful gambling; 78.36 (2) sell, offer for sale, or furnish gambling equipment for 79.1 use within the state without having obtained a distributor 79.2 license or a distributor salesperson license under this section; 79.3 (3) sell, offer for sale, or furnish gambling equipment for 79.4 use within the state that is not purchased or obtained from a 79.5 manufacturer or distributor licensed under this chapter; or 79.6 (4) sell, offer for sale, or furnish gambling equipment for 79.7 use within the state that has the same serial number as another 79.8 item of gambling equipment of the same type sold or offered for 79.9 sale or furnished for use in the state by that distributor. 79.10 (b) No licensed distributor salesperson may sell, offer for 79.11 sale, or furnish gambling equipment for use within the state 79.12 without being employed by a licensed distributor or owning a 79.13 distributor license. 79.14 Sec. 89. Minnesota Statutes 2002, section 349.161, 79.15 subdivision 4, is amended to read: 79.16 Subd. 4. [FEES.] (a) Theinitialannual fee for a 79.17 distributor's license is$3,500$6,000.The initial term of a79.18distributor's license is one year. Renewal licenses under this79.19section are valid for two years and the fee for the renewal79.20license is $7,000.79.21 (b) The annual fee for a distributor salesperson license is 79.22 $100. 79.23 Sec. 90. Minnesota Statutes 2002, section 349.161, 79.24 subdivision 5, is amended to read: 79.25 Subd. 5. [PROHIBITION.] (a) No distributor, distributor 79.26 salesperson, or other employee of a distributor, may also be a 79.27 wholesale distributor of alcoholic beverages or an employee of a 79.28 wholesale distributor of alcoholic beverages. 79.29 (b) No distributor, distributor salesperson, or any 79.30 representative, agent, affiliate, or other employee of a 79.31 distributor, may: (1) be involved in the conduct of lawful 79.32 gambling by an organization; (2) keep or assist in the keeping 79.33 of an organization's financial records, accounts, and 79.34 inventories; or (3) prepare or assist in the preparation of tax 79.35 forms and other reporting forms required to be submitted to the 79.36 state by an organization. 80.1 (c) No distributor, distributor salesperson, or any 80.2 representative, agent, affiliate, or other employee of a 80.3 distributor may provide a lessor of gambling premises any 80.4 compensation, gift, gratuity, premium, or other thing of value. 80.5 (d) No distributor, distributor salesperson, or any 80.6 representative, agent, affiliate, or other employee of a 80.7 distributor may participate in any gambling activity at any 80.8 gambling site or premises where gambling equipment purchased 80.9 from that distributor or distributor salesperson is being used 80.10 in the conduct of lawful gambling. 80.11 (e) No distributor, distributor salesperson, or any 80.12 representative, agent, affiliate, or other employee of a 80.13 distributor may alter or modify any gambling equipment, except 80.14 to add a "last ticket sold" prize sticker. 80.15 (f) No distributor, distributor salesperson, or any 80.16 representative, agent, affiliate, or other employee of a 80.17 distributor may: (1) recruit a person to become a gambling 80.18 manager of an organization or identify to an organization a 80.19 person as a candidate to become gambling manager for the 80.20 organization; or (2) identify for an organization a potential 80.21 gambling location. 80.22 (g) No distributor or distributor salesperson may purchase 80.23 gambling equipment for resale to a person for use within the 80.24 state from any person not licensed as a manufacturer under 80.25 section 349.163. 80.26 (h) No distributor or distributor salesperson may sell 80.27 gambling equipment to any person for use in Minnesota other than 80.28 (i) a licensed organization or organization excluded or exempt 80.29 from licensing, or (ii) the governing body of an Indian tribe. 80.30 (i) No distributor or distributor salesperson may sell or 80.31 otherwise provide a pull-tab or tipboard deal with the symbol 80.32 required by section 349.163, subdivision 5, paragraph (h), 80.33 visible on the flare to any person other than in Minnesota to a 80.34 licensed organization or organization exempt from licensing. 80.35 Sec. 91. Minnesota Statutes 2002, section 349.162, 80.36 subdivision 1, is amended to read: 81.1 Subdivision 1. [STAMP REQUIRED.] (a) A distributor may not 81.2 sell, transfer, furnish, or otherwise provide to a person, and 81.3 no person may purchase, borrow, accept, or acquire from a 81.4 distributor gambling equipment for use within the state unless 81.5 the equipment has been registered with the board and has a 81.6 registration stamp affixed, except for gambling equipment not 81.7 stamped by the manufacturer pursuant to section 349.163, 81.8 subdivision 5 or 8.The board shall charge a fee of five cents81.9for each stamp.Each stamp must bear a registration number 81.10 assigned by the board.A distributor or manufacturer is81.11entitled to a refund for unused registration stamps and81.12replacement for registration stamps which are defective or81.13canceled by the distributor or manufacturer.81.14 (b) A manufacturer must return all unused registration 81.15 stamps in its possession to the board by February 1, 1995. No 81.16 manufacturer may possess unaffixed registration stamps after 81.17 February 1, 1995. 81.18 (c) After February 1, 1996, no person may possess any 81.19 unplayed pull-tab or tipboard deals with a registration stamp 81.20 affixed to the flare or any unplayed paddleticket cards with a 81.21 registration stamp affixed to the master flare. This paragraph 81.22 does not apply to unplayed pull-tab or tipboard deals with a 81.23 registration stamp affixed to the flare, or to unplayed 81.24 paddleticket cards with a registration stamp affixed to the 81.25 master flare, if the deals or cards are identified on a list of 81.26 existing inventory submitted by a licensed organization or a 81.27 licensed distributor, in a format prescribed by the commissioner 81.28 of revenue, to the commissioner of revenue on or before February 81.29 1, 1996. Gambling equipment kept in violation of this paragraph 81.30 is contraband under section 349.2125. 81.31 Sec. 92. Minnesota Statutes 2002, section 349.163, 81.32 subdivision 2, is amended to read: 81.33 Subd. 2. [LICENSE; FEE.]The initial license under this81.34section is valid for one year. The fee for the initial license81.35is $5,000. Renewal licenses under this section are valid for81.36two years and the fee for the renewal license is $10,000.The 82.1 annual fee for a manufacturer's license is $9,000. 82.2 Sec. 93. Minnesota Statutes 2002, section 349.163, 82.3 subdivision 6, is amended to read: 82.4 Subd. 6. [SAMPLES OF GAMBLING EQUIPMENT.] The board shall 82.5 require each licensed manufacturer to submit to the board one or 82.6 more samples of each item of gambling equipment the manufacturer 82.7 manufactures for use or resale in this state. The board shall 82.8 inspect and test all the equipment it deems necessary to 82.9 determine the equipment's compliance with law and board rules. 82.10 Samples required under this subdivision must be approved by the 82.11 board before the equipment being sampled is shipped into or sold 82.12 for use or resale in this state. The board shall impose a fee 82.13 of $25 for each item of gambling equipment that the manufacturer 82.14 submits for approval or for which the manufacturer requests 82.15 approval. The board shall impose a fee of $100 for each sample 82.16 of gambling equipment that it tests. The board may require 82.17 samples of gambling equipment to be tested by an independent 82.18 testing laboratory prior to submission to the board for 82.19 approval. All costs of testing by an independent testing 82.20 laboratory must be borne by the manufacturer. An independent 82.21 testing laboratory used by a manufacturer to test samples of 82.22 gambling equipment must be approved by the board before the 82.23 equipment is submitted to the laboratory for testing. The board 82.24 may request the assistance of the commissioner of public safety 82.25 and the director of the state lottery in performing the tests. 82.26 Sec. 94. Minnesota Statutes 2002, section 349.164, 82.27 subdivision 4, is amended to read: 82.28 Subd. 4. [FEES; TERM OF LICENSE.] Theinitialannual fee 82.29 for a bingo hall license is$2,500$4,000.An initial license82.30under this section is valid for one year. Renewal licenses82.31under this section are valid for two years and the fee for the82.32renewal license is $5,000.82.33 Sec. 95. Minnesota Statutes 2002, section 349.165, 82.34 subdivision 3, is amended to read: 82.35 Subd. 3. [FEES.](a) The board may issue four classes of82.36premises permits corresponding to the classes of licenses83.1authorized under section 349.16, subdivision 6. The fee for83.2each class of permit is:83.3(1) $400 for a class A permit;83.4(2) $250 for a class B permit;83.5(3) $200 for a class C permit; and83.6(4) $150 for a class D permit.83.7(b) If a premises permit is issued during the second year83.8of an organization's license, the fee for each class of permit83.9is:83.10(1) $200 for a class A permit;83.11(2) $125 for a class B permit;83.12(3) $100 for a class C permit; and83.13(4) $75 for a class D permit.83.14 The monthly fee for a premises permit is 0.18 percent of 83.15 the organization's gross receipts from lawful gambling conducted 83.16 at that site. The fee shall be reported and paid on a monthly 83.17 basis in a format as determined by the commissioner of revenue, 83.18 and remitted to the commissioner of revenue along with the 83.19 organization's monthly tax return for that premises. All 83.20 premises permit fees received by the commissioner of revenue 83.21 pursuant to this subdivision must be deposited in the lawful 83.22 gambling regulation account of the special revenue fund 83.23 according to section 349.151. Failure to pay the monthly 83.24 premises permit fees in a timely manner may result in 83.25 disciplinary action by the board. 83.26 Sec. 96. Minnesota Statutes 2002, section 349.166, 83.27 subdivision 1, is amended to read: 83.28 Subdivision 1. [EXCLUSIONS.] (a) Bingo may be conducted 83.29 without a license and without complying with sections 349.168, 83.30 subdivisions 1 and 2; 349.17, subdivisions 1, 4, and 5; 349.18, 83.31 subdivision 1; and 349.19, if it is conducted: 83.32 (1) by an organization in connection with a county fair, 83.33 the state fair, or a civic celebration and is not conducted for 83.34 more than 12 consecutive days and is limited to no more than 83.35 four separate applications for activities applied for and 83.36 approved in a calendar year; or 84.1 (2) by an organization that conducts four or fewer bingo 84.2 occasions in a calendar year. 84.3 An organization that holds a license to conduct lawful 84.4 gambling under this chapter may not conduct bingo under this 84.5 subdivision. 84.6 (b) Bingo may be conducted within a nursing home or a 84.7 senior citizen housing project or by a senior citizen 84.8 organization if the prizes for a single bingo game do not exceed 84.9 $10, total prizes awarded at a single bingo occasion do not 84.10 exceed $200, no more than two bingo occasions are held by the 84.11 organization or at the facility each week, only members of the 84.12 organization or residents of the nursing home or housing project 84.13 are allowed to play in a bingo game, no compensation is paid for 84.14 any persons who conduct the bingo, and a manager is appointed to 84.15 supervise the bingo. Bingo conducted under this paragraph is 84.16 exempt from sections 349.11 to 349.23, and the board may not 84.17 require an organization that conducts bingo under this 84.18 paragraph, or the manager who supervises the bingo, to register 84.19 or file a report with the board. The gross receipts from bingo 84.20 conducted under the limitations of this subdivision are exempt 84.21 from taxation under chapter 297A. 84.22 (c) Raffles may be conducted by an organization without a 84.23 license and without complying with sections 349.154 to 349.165 84.24 and 349.167 to 349.213 if the value of all raffle prizes awarded 84.25 by the organization in a calendar year does not 84.26 exceed$750$1,500. 84.27 (d) Except as provided in paragraph (b), the organization 84.28 must maintain all required records of excluded gambling activity 84.29 for 3-1/2 years. 84.30 Sec. 97. Minnesota Statutes 2002, section 349.166, 84.31 subdivision 2, is amended to read: 84.32 Subd. 2. [EXEMPTIONS.] (a) Lawful gambling may be 84.33 conducted by an organization without a license and without 84.34 complying with sections 349.168, subdivisions 1 and 2; 349.17, 84.35 subdivisions 4 and 5; 349.18, subdivision 1; and 349.19 if: 84.36 (1) the organization conducts lawful gambling on five or 85.1 fewer days in a calendar year; 85.2 (2) the organization does not award more than $50,000 in 85.3 prizes for lawful gambling in a calendar year; 85.4 (3) the organization pays a fee of$25$50 to the board, 85.5 notifies the board in writing not less than 30 days before each 85.6 lawful gambling occasion of the date and location of the 85.7 occasion, or 60 days for an occasion held in the case of a city 85.8 of the first class, the types of lawful gambling to be 85.9 conducted, the prizes to be awarded, and receives an exemption 85.10 identification number; 85.11 (4) the organization notifies the local government unit 30 85.12 days before the lawful gambling occasion, or 60 days for an 85.13 occasion held in a city of the first class; 85.14 (5) the organization purchases all gambling equipment and 85.15 supplies from a licensed distributor; and 85.16 (6) the organization reports to the board, on a single-page 85.17 form prescribed by the board, within 30 days of each gambling 85.18 occasion, the gross receipts, prizes, expenses, expenditures of 85.19 net profits from the occasion, and the identification of the 85.20 licensed distributor from whom all gambling equipment was 85.21 purchased. 85.22 (b) If the organization fails to file a timely report as 85.23 required by paragraph (a), clause (3) or (6), the board shall 85.24 not issue any authorization, license, or permit to the 85.25 organization to conduct lawful gambling on an exempt, excluded, 85.26 or licensed basis until the report has been filed. 85.27 (c) Merchandise prizes must be valued at their fair market 85.28 value. 85.29 (d) Unused pull-tab and tipboard deals must be returned to 85.30 the distributor within seven working days after the end of the 85.31 lawful gambling occasion. The distributor must accept and pay a 85.32 refund for all returns of unopened and undamaged deals returned 85.33 under this paragraph. 85.34 (e) An organization that is exempt from taxation on 85.35 purchases of pull-tabs and tipboards under section 297E.02, 85.36 subdivision 4, paragraph (b), clause (4), must return to the 86.1 distributor any tipboard or pull-tab deal no part of which is 86.2 used at the lawful gambling occasion for which it was purchased 86.3 by the organization. 86.4 (f) The organization must maintain all required records of 86.5 exempt gambling activity for 3-1/2 years. 86.6 Sec. 98. [349.2113] 86.7 On or after January 1, 2004, a licensed organization may 86.8 not put into play a pull-tab or tipboard deal that provides for 86.9 a prize payout of greater than 85 percent of the ideal gross of 86.10 the deal. 86.11 Sec. 99. Minnesota Statutes 2002, section 349A.08, 86.12 subdivision 5, is amended to read: 86.13 Subd. 5. [PAYMENT; UNCLAIMED PRIZES.] A prize in the state 86.14 lottery must be claimed by the winner within one year of the 86.15 date of the drawing at which the prize was awarded or the last 86.16 day sales were authorized for a game where a prize was 86.17 determined in a manner other than by means of a drawing. If a 86.18 valid claim is not made for a prize payable directly by the 86.19 lottery by the end of this period, the prize money is considered 86.20 unclaimed and the winner of the prize shall have no further 86.21 claim to the prize. A prize won by a person who purchased the 86.22 winning ticket in violation of section 349A.12, subdivision 1, 86.23 or won by a person ineligible to be awarded a prize under 86.24 subdivision 7 must be treated as an unclaimed prize under this 86.25 section. The directorshallmust transfer70 percent ofall 86.26 unclaimed prize money at the end of each fiscal year from the 86.27 lottery cash flow accountas follows: of the 70 percent, 4086.28percent must be transferred to the Minnesota environment and86.29natural resources trust fund and 60 percent must be transferred86.30 to the general fund.The remaining 30 percent of the unclaimed86.31prize money must be added by the director to prize pools of86.32subsequent lottery games.86.33 Sec. 100. Minnesota Statutes 2002, section 352D.04, is 86.34 amended by adding a subdivision to read: 86.35 Subd. 3. [ADDITIONAL CONTRIBUTIONS.] The executive 86.36 director of the Minnesota state retirement system must allow a 87.1 participant in the unclassified program a onetime option, at the 87.2 time of hire, under which the employee contribution to the plan 87.3 is ten percent of salary. 87.4 Sec. 101. Minnesota Statutes 2002, section 356.611, 87.5 subdivision 1, is amended to read: 87.6 Subdivision 1. [STATE SALARY LIMITATIONS.] (a) 87.7 Notwithstanding any provision of law, bylaws, articles of 87.8 incorporation, retirement and disability allowance plan 87.9 agreements, or retirement plan contracts to the contrary, the 87.10 covered salary for pension purposes for a plan participant of a 87.11 covered retirement fund enumerated in section 356.30, 87.12 subdivision 3, may not exceed 95 percent of the salary 87.13 established for the governor under section 15A.082 at the time 87.14 the person received the salary. 87.15 (b) This section does not apply to a salary paid: 87.16 (1) to the governor; 87.17 (2) to an employee of a political subdivision in a position 87.18 that is excluded from the limit as specified under section 87.1943A.17, subdivision 915A.23; or 87.20 (3) to a state employee in a position for which the 87.21 commissioner of employee relations has approved a salary rate 87.22 that exceeds 95 percent of the governor's salary. 87.23 (c) The limited covered salary determined under this 87.24 section must be used in determining employee and employer 87.25 contributions and in determining retirement annuities and other 87.26 benefits under the respective covered retirement fund and under 87.27 this chapter. 87.28 Sec. 102. Minnesota Statutes 2002, section 458D.17, 87.29 subdivision 5, is amended to read: 87.30 Subd. 5. [AUDIT.] The board shall provide for and pay the 87.31 cost of an independent annual audit of its official books and 87.32 records by the statepublic examinerauditor or a certified 87.33 public accountant. 87.34 Sec. 103. Minnesota Statutes 2002, section 471.696, is 87.35 amended to read: 87.36 471.696 [FISCAL YEAR; DESIGNATION.] 88.1 Beginning in 1979, the fiscal year of a city and all of its 88.2 funds shall be the calendar year, except that a city may, by 88.3 resolution, provide that the fiscal year for city-owned nursing 88.4 homes be the reporting year designated by the commissioner of 88.5 human services. Beginning in 1994, the fiscal year of a town 88.6 and all of its funds shall be the calendar year.The state88.7auditor may upon request of a town and a showing of inability to88.8conform, extend the deadline for compliance with this section88.9for one year.88.10 Sec. 104. Minnesota Statutes 2002, section 471.999, is 88.11 amended to read: 88.12 471.999 [MAINTAINING PAY EQUITY; REPORT TO LEGISLATURE.] 88.13 (a) The state auditor shall monitor compliance by political 88.14 subdivisions with section 471.992, subdivision 1. The state 88.15 auditor may charge and collect a fee pursuant to section 6.56. 88.16 (b) Thecommissioner of employee relationsstate auditor 88.17 shall report to the legislature by January 1 of each year on the 88.18 status of compliance with section 471.992, subdivision 1, by 88.19 governmental subdivisions. 88.20 The report must include a list of the political 88.21 subdivisions in compliance with section 471.992, subdivision 1, 88.22 and the estimated cost of compliance. The report must also 88.23 include a list of political subdivisions found by the 88.24commissionerstate auditor to be not in compliance, the basis 88.25 for that finding, recommended changes to achieve compliance, 88.26 estimated cost of compliance, and recommended penalties, if 88.27 any. Thecommissioner'sauditor's report must include a list of 88.28 subdivisions that did not comply with the reporting requirements 88.29 of this section. Thecommissionerstate auditor may request, 88.30 and a subdivision shall provide, any additional information 88.31 needed for the preparation of a report under this subdivision. 88.32 (c) Notwithstanding any rule to the contrary, beginning in 88.33 2005, a political subdivision must report to the state auditor 88.34 on its compliance with the requirements of sections 471.991 to 88.35 471.999 no more frequently than once every five years. No 88.36 report from a political subdivision is required for 2003 and 89.1 2004. 89.2 Sec. 105. Minnesota Statutes 2002, section 474A.21, is 89.3 amended to read: 89.4 474A.21 [APPROPRIATION; RECEIPTS.] 89.5 Any application fees collected by the department under 89.6 sections 474A.01 to 474A.21 must be deposited ina separate89.7account inthe general fund. The amount necessary to refund 89.8 application deposits is appropriated to the departmentfrom the89.9separate account in the general fundfor that purpose. The 89.10 interest accruing on application deposits and any application 89.11 deposit not refunded as provided under section 474A.061, 89.12 subdivision 4, or 474A.091, subdivision 5, or forfeited as 89.13 provided under section 474A.131, subdivision 2, must be 89.14 deposited in thehousing trustgeneral fundaccount under89.15section 462A.201. 89.16 Sec. 106. Minnesota Statutes 2002, section 477A.014, 89.17 subdivision 4, is amended to read: 89.18 Subd. 4. [COSTS.] The director of the office of strategic 89.19 and long-range planning shall annually bill the commissioner of 89.20 revenue for one-half of the costs incurred by the state 89.21 demographer in the preparation of materials required by section 89.22 4A.02. The state auditor shall bill the commissioner of revenue 89.23 for the costs of best practices reviews and the services 89.24 provided by the government information division and the parts of 89.25 the constitutional office that are related to the government 89.26 information function, not to exceed $217,000 in fiscal year 1992 89.27 and $217,000 in fiscal year 1993 and thereafter. The 89.28 commissioner of administration shall bill the commissioner of 89.29 revenue for the costs of the local government records program 89.30 and the intergovernmental information systems activity, not to 89.31 exceed $201,100 in fiscal year 1992 and $205,800 in fiscal year 89.32 1993 and thereafter.The commissioner of employee relations89.33shall bill the commissioner of revenue for the costs of89.34administering the local government pay equity function, not to89.35exceed $56,000 in fiscal year 1992 and $55,000 in fiscal year89.361993 and thereafter.90.1 [EFFECTIVE DATE.] The requirement in this section for the 90.2 state auditor to bill for costs of best practices reviews is 90.3 effective July 1, 2004. The remainder of the section is 90.4 effective July 1, 2003. 90.5 Sec. 107. Minnesota Statutes 2002, section 624.20, 90.6 subdivision 1, is amended to read: 90.7 Subdivision 1. (a) As used in sections 624.20 to 624.25, 90.8 the term "fireworks" means any substance or combination of 90.9 substances or article prepared for the purpose of producing a 90.10 visible or an audible effect by combustion, explosion, 90.11 deflagration, or detonation, and includes blank cartridges, toy 90.12 cannons, and toy canes in which explosives are used, the type of 90.13 balloons which require fire underneath to propel them, 90.14 firecrackers, torpedoes, skyrockets, Roman candles, daygo bombs, 90.15 sparklers other than those specified in paragraph (c), or other 90.16 fireworks of like construction, and any fireworks containing any 90.17 explosive or inflammable compound, or any tablets or other 90.18 device containing any explosive substance and commonly used as 90.19 fireworks. 90.20 (b) The term "fireworks" shall not include toy pistols, toy 90.21 guns, in which paper caps containing 25/100 grains or less of 90.22 explosive compound are used and toy pistol caps which contain 90.23 less than 20/100 grains of explosive mixture. 90.24 (c) The term also does not include wire or wood sparklers 90.25 of not more than 100 grams of mixture per item, other sparkling 90.26 items which are nonexplosive and nonaerial and contain 75 grams 90.27 or less of chemical mixture per tube or a total of 200 grams or 90.28 less for multiple tubes, snakes and glow worms, smoke devices, 90.29 or trick noisemakers which include paper streamers, party 90.30 poppers, string poppers, snappers, and drop pops, each 90.31 consisting of not more than twenty-five hundredths grains of 90.32 explosive mixture. The use of items listed in this paragraph is 90.33 not permitted on public property. This paragraph does not 90.34 authorize the purchase of items listed in it by persons younger 90.35 than 18 years of age. The age of a purchaser of items listed in 90.36 this paragraph must be verified by photographic identification. 91.1 (d) A local unit of government may impose an annual license 91.2 fee for the retail sale of items authorized under paragraph 91.3 (c). The annual license fee of each retail seller that is in 91.4 the business of selling only the items authorized under 91.5 paragraph (c) may not exceed $350, and the annual license of 91.6 each other retail seller may not exceed $100. A local unit of 91.7 government may not: 91.8 (1) impose any fee or charge, other than the fee authorized 91.9 by this paragraph or a tax imposed under section 297A.99, on the 91.10 retail sale of items authorized under paragraph (c); 91.11 (2) prohibit or restrict the display of items for retail 91.12 sale authorized under paragraph (c); or 91.13 (3) impose on a retail seller any financial guarantee 91.14 requirements, including bonding or insurance provisions, 91.15 containing restrictions or conditions not imposed on the same 91.16 basis on all other business licensees. 91.17 [EFFECTIVE DATE.] This section is effective the day 91.18 following final enactment. 91.19 Sec. 108. Laws 1998, chapter 366, section 80, as amended 91.20 by Laws 2001, First Special Session chapter 10, article 2, 91.21 section 86, is amended to read: 91.22 Sec. 80. [SETTLEMENT DIVISION; TRANSFER OF JUDGES.] 91.23 The office of administrative hearings shall establish a 91.24 settlement division. The workers' compensation judges at the 91.25 department of labor and industry, together with their support 91.26 staff, offices, furnishings, equipment, and supplies, are 91.27 transferred to the settlement division of the office of 91.28 administrative hearings. Minnesota Statutes, section 15.039, 91.29 applies to the transfer of employees. The settlement division 91.30 of the office of administrative hearings shall maintain offices 91.31 in either Hennepin or Ramsey county and thecitiescity of 91.32 Duluthand Detroit Lakes. The office of a judge in the 91.33 settlement division of the office of administrative hearings and 91.34 the support staff of the judge may be located in a building that 91.35 contains offices of the department of labor and industry. The 91.36 seniority of a workers' compensation judge at the office of 92.1 administrative hearings, after the transfer, shall be based on 92.2 the total length of service as a judge at either agency. For 92.3 purposes of the commissioner's plan under Minnesota Statutes, 92.4 section 43A.18, subdivision 2, all compensation judges at the 92.5 office of administrative hearings shall be considered to be in 92.6 the same employment condition, the same organizational unit and 92.7 qualified for work in either division. 92.8 Sec. 109. [TRANSFER OF DUTIES RELATING TO PAY EQUITY.] 92.9 The responsibilities relating to local government pay 92.10 equity under Minnesota Statutes, sections 471.991 to 471.999, 92.11 and Minnesota Rules, chapter 3920, are transferred from the 92.12 department of employee relations to the state auditor. 92.13 Minnesota Statutes, section 15.039, applies to the transfer of 92.14 responsibilities. 92.15 Sec. 110. [UNCLASSIFIED PLAN.] 92.16 The executive director of the Minnesota state retirement 92.17 system must offer persons who are participants in the 92.18 unclassified plan on the effective date of this section a 92.19 onetime option to choose the ten percent contribution level 92.20 specified in Minnesota Statutes, section 352D.04. 92.21 Sec. 111. [SALARY FREEZE.] 92.22 Subdivision 1. [SALARY INCREASES PROHIBITED.] (a) From the 92.23 effective date of this section through June 30, 2005, a state 92.24 employer must not increase the rate of salary or wages for any 92.25 employee. This section prohibits any increase including, but 92.26 not limited to, across-the-board increases, cost-of-living 92.27 adjustments, increases based on longevity, increases as a result 92.28 of step and lane changes, increases in the form of lump-sum 92.29 payments, increases in employer contributions to deferred 92.30 compensation plans, or any other pay grade adjustments of any 92.31 kind. For purposes of this section, salary or wages does not 92.32 include employer contributions toward the cost of medical or 92.33 dental insurance premiums provided that employee contributions 92.34 to the costs of medical or dental insurance premiums are not 92.35 decreased. 92.36 (b) This section does not prohibit an increase in the rate 93.1 of salary and wages for an employee who is promoted or 93.2 transferred to a position that the employer determines has 93.3 greater job responsibilities. 93.4 (c) Notwithstanding any law to the contrary, the terms of a 93.5 collective bargaining agreement in effect on June 30, 2003, may 93.6 not be extended after that date if the extension would increase 93.7 a salary in a manner prohibited by this section. 93.8 Subd. 2. [FUTURE CONTRACTS.] A contract or collective 93.9 bargaining agreement or compensation plan entered into after 93.10 June 30, 2005, must not provide a retroactive salary, or wage 93.11 increase that applies to a period before June 30, 2005, if that 93.12 increase would be prohibited by this section if granted before 93.13 June 30, 2005. 93.14 Subd. 3. [ARBITRATION AND STRIKES.] Notwithstanding any 93.15 law to the contrary: 93.16 (1) an employee may not legally strike due to a state 93.17 employer's refusal to grant a salary or wage increase if the 93.18 refusal is required to comply with this section; and 93.19 (2) neither a state employer nor an exclusive 93.20 representative may request interest arbitration in relation to 93.21 an increase in the rate of salary or wages that is prohibited by 93.22 this section, and an arbitrator may not issue an award that 93.23 would increase salary or wages in a manner prohibited by this 93.24 section. 93.25 Subd. 4. [DEFINITIONS.] For purposes of this section: 93.26 (1) "state employer" means an appointing authority in the 93.27 executive, legislative, or judicial branches as defined in 93.28 Minnesota Statutes, section 43A.02, subdivisions 5, 22, 25, and 93.29 27; and 93.30 (2) "employee" has the meaning given in Minnesota Statutes, 93.31 section 43A.02, subdivision 21. 93.32 Subd. 5. [RELATION TO OTHER LAW.] This section supersedes 93.33 Minnesota Statutes, chapter 179A, and any other law to the 93.34 contrary. It is not an unfair labor practice under Minnesota 93.35 Statutes, chapter 179A, for a state employer to take any action 93.36 required to comply with this section. 94.1 [EFFECTIVE DATE.] This section is effective July 1, 2003. 94.2 Sec. 112. [UNIVERSITY OF MINNESOTA; SALARY AND WAGE RATE 94.3 FREEZE RECOMMENDED.] 94.4 The legislature strongly recommends that the University of 94.5 Minnesota comply with section 111 as if it were defined as a 94.6 state employer under that section. 94.7 [EFFECTIVE DATE.] This section is effective July 1, 2003. 94.8 Sec. 113. [GAMBLING CONTROL; FEE TRANSITION.] 94.9 Effective July 1, 2003, all licensees regulated by the 94.10 gambling control board must begin paying the applicable fees 94.11 under Minnesota Statutes, sections 349.16 to 349.165. The 94.12 gambling control board shall provide a onetime, prorated credit 94.13 against these fees to licensees who paid for licenses before 94.14 July 1, 2003, that were to extend beyond July 1, 2003. 94.15 Sec. 114. [CARRYFORWARD.] 94.16 Notwithstanding Minnesota Statutes, section 16A.28, or 94.17 other law to the contrary, funds encumbered by the judicial or 94.18 executive branch for severance costs; unemployment compensation 94.19 costs; and health, dental, and life insurance continuation costs 94.20 resulting from state employee layoffs during the fiscal year 94.21 ending June 30, 2003, may be carried forward and may be spent 94.22 until January 1, 2004. 94.23 Sec. 115. [VACATION LIMIT.] 94.24 A state employee who takes voluntary unpaid leave of 94.25 absence during the biennium ending June 30, 2005, must be 94.26 allowed to accrue a vacation leave balance up to at least 300 94.27 hours through June 30, 2005. 94.28 Sec. 116. [GAMING STUDY.] 94.29 The director of the state lottery shall contract with an 94.30 independent entity to perform an analysis of the economic 94.31 effects of a gaming facility in the metropolitan area on 94.32 existing tribal gaming facilities located in or within 100 miles 94.33 of the metropolitan area. 94.34 Sec. 117. [LCC; LEAVE WITHOUT PAY.] 94.35 (a) If the legislative coordinating commission requires 94.36 employees under its jurisdiction to take temporary leave without 95.1 pay during the biennium ending June 30, 2005, the first 80 hours 95.2 of leave without pay in fiscal year 2004 and the first 80 hours 95.3 of leave without pay in fiscal year 2005 are governed by this 95.4 section. The commission must permit employees taking this leave 95.5 to continue accruing vacation and sick leave, be eligible for 95.6 paid holidays and insurance benefits, accrue seniority, and 95.7 accrue service credit and credited salary in state retirement 95.8 plans permitting service credits for authorized leaves of 95.9 absence as if the employee had actually been employed during the 95.10 time of the leave. The commission may make the employer 95.11 contribution to the employee's retirement plan if the employee 95.12 participates in a defined contribution plan. If the leave 95.13 without pay is for one full pay period or longer, any holiday 95.14 pay shall be included in the first payroll warrant after return 95.15 from the leave. Managers must attempt to schedule leaves to 95.16 meet the needs of employees and the need to continue efficient 95.17 operation of their offices. 95.18 (b) Notwithstanding Minnesota Statutes, section 43A.18, 95.19 subdivisions 2 and 3, the legislative coordinating commission 95.20 may require employees in the office of the legislative auditor 95.21 whose terms and conditions of employment are determined through 95.22 the commissioner and managerial compensation plans to take leave 95.23 without pay as described in paragraph (a). 95.24 Sec. 118. [OFFICIAL PUBLICATION STUDY.] 95.25 Representatives of local public corporations, as defined in 95.26 Minnesota Statutes, chapter 331A, must meet with representatives 95.27 of qualified newspapers and report to the legislature by January 95.28 15, 2004, on alternative means of official publication for local 95.29 public corporations. 95.30 Sec. 119. [TRAINING SERVICES.] 95.31 During the biennium ending June 30, 2005, state executive 95.32 agencies must consider using services provided by the government 95.33 training service before contracting with other outside vendors 95.34 for similar services. 95.35 Sec. 120. [REVISOR'S INSTRUCTIONS.] 95.36 (a) In the next and subsequent editions of Minnesota 96.1 Statutes, the revisor of statutes shall replace the terms 96.2 "commissioner of employee relations" and "commissioner" with 96.3 "state auditor" in sections 471.991 to 471.999. In sections 96.4 affected by this instruction, the revisor may make changes 96.5 necessary to correct the cross-references, punctuation, grammar, 96.6 or structure of the remaining text and preserve its meaning. 96.7 (b) In the next and subsequent editions of Minnesota Rules, 96.8 chapter 3920, the revisor of statutes shall replace the terms 96.9 "department of employee relations" and "department" with "state 96.10 auditor." The revisor shall replace the address listed in 96.11 Minnesota Rules, part 3920.0100, subpart 11, with "525 Park 96.12 Street, Suite 400, Saint Paul, Minnesota 55103." In parts 96.13 affected by this instruction, the revisor may make changes 96.14 necessary to correct the cross-references, punctuation, grammar, 96.15 or structure of the remaining text and preserve its meaning. 96.16 Sec. 121. [REPEALER.] 96.17 (a) Minnesota Statutes 2002, sections 3.305, subdivision 5; 96.18 3.9222; 3A.11; 4A.055; 6.77; 16A.151, subdivision 5; 16A.87; 96.19 43A.04, subdivision 10; 43A.17, subdivision 9; 149A.97, 96.20 subdivision 8; 163.10; 240A.08; and 306.97, are repealed. 96.21 (b) Minnesota Rules, part 1950.1070, is repealed effective 96.22 July 1, 2004. 96.23 (c) Minnesota Statutes 2002, sections 12.221, subdivision 96.24 5; 16B.50; 16C.07; and 43A.047, are repealed effective the day 96.25 following final enactment. 96.26 (d) Minnesota Statutes 2002, section 3.971, subdivision 8, 96.27 is repealed effective July 1, 2004. 96.28 ARTICLE 3 96.29 LINKED BINGO 96.30 Section 1. Minnesota Statutes 2002, section 349.12, 96.31 subdivision 4, is amended to read: 96.32 Subd. 4. [BINGO.] "Bingo" means a game where each player 96.33 has a bingo hard card or bingo paper sheet, for which a 96.34 consideration has been paid, and played in accordance with this 96.35 chapter and with rules of the board for the conduct of 96.36 bingo. Bingo also includes a linked bingo game. 97.1 Sec. 2. Minnesota Statutes 2002, section 349.12, 97.2 subdivision 18, is amended to read: 97.3 Subd. 18. [GAMBLING EQUIPMENT.] "Gambling equipment" 97.4 means: bingo hard cards or paper sheets, linked bingo paper 97.5 sheets, devices for selecting bingo numbers, pull-tabs, jar 97.6 tickets, paddlewheels, paddlewheel tables, paddletickets, 97.7 paddleticket cards, tipboards, tipboard tickets, and pull-tab 97.8 dispensing devices. 97.9 Sec. 3. Minnesota Statutes 2002, section 349.12, is 97.10 amended by adding a subdivision to read: 97.11 Subd. 25a. [LINKED BINGO GAME.] "Linked bingo game" means 97.12 a bingo game played at two or more locations where licensed 97.13 organizations are authorized to conduct bingo, where there is a 97.14 common prize pool and a common selection of numbers or symbols 97.15 conducted at one location, and where the results of the 97.16 selection are transmitted to all participating locations by 97.17 satellite, telephone, or other means by a linked bingo game 97.18 provider. 97.19 Sec. 4. Minnesota Statutes 2002, section 349.12, is 97.20 amended by adding a subdivision to read: 97.21 Subd. 25b. [LINKED BINGO GAME PROVIDER.] "Linked bingo 97.22 game provider" means any person who provides the means to link 97.23 bingo prizes in a linked bingo game, who provides linked bingo 97.24 paper sheets to the participating organizations, who provides 97.25 linked bingo prize management, and who provides the linked bingo 97.26 game system. 97.27 Sec. 5. Minnesota Statutes 2002, section 349.12, is 97.28 amended by adding a subdivision to read: 97.29 Subd. 25c. [LINKED BINGO GAME SYSTEM.] "Linked bingo game 97.30 system" means the equipment used by the linked bingo provider to 97.31 conduct, transmit, and track a linked bingo game. The system 97.32 must be approved by the board before its use in this state and 97.33 it must have dial-up or other capability to permit the board to 97.34 monitor its operation remotely. 97.35 Sec. 6. Minnesota Statutes 2002, section 349.12, is 97.36 amended by adding a subdivision to read: 98.1 Subd. 25d. [LINKED BINGO PRIZE POOL.] "Linked bingo prize 98.2 pool" means the total of all prize money that each participating 98.3 organization has contributed to the linked bingo game prize. No 98.4 participating organization may contribute more than $300 per 98.5 bingo occasion to a linked bingo prize pool. 98.6 Sec. 7. Minnesota Statutes 2002, section 349.151, 98.7 subdivision 4, is amended to read: 98.8 Subd. 4. [POWERS AND DUTIES.] (a) The board has the 98.9 following powers and duties: 98.10 (1) to regulate lawful gambling to ensure it is conducted 98.11 in the public interest; 98.12 (2) to issue licenses to organizations, distributors, bingo 98.13 halls, manufacturers, linked bingo game providers, and gambling 98.14 managers; 98.15 (3) to collect and deposit license, permit, and 98.16 registration fees due under this chapter; 98.17 (4) to receive reports required by this chapter and inspect 98.18 all premises, records, books, and other documents of 98.19 organizations, distributors, manufacturers, linked bingo game 98.20 providers, and bingo halls to insure compliance with all 98.21 applicable laws and rules; 98.22 (5) to make rules authorized by this chapter; 98.23 (6) to register gambling equipment and issue registration 98.24 stamps; 98.25 (7) to provide by rule for the mandatory posting by 98.26 organizations conducting lawful gambling of rules of play and 98.27 the odds and/or house percentage on each form of lawful 98.28 gambling; 98.29 (8) to report annually to the governor and legislature on 98.30 its activities and on recommended changes in the laws governing 98.31 gambling; 98.32 (9) to impose civil penalties of not more than $500 per 98.33 violation on organizations, distributors, employees eligible to 98.34 make sales on behalf of a distributor, manufacturers, bingo 98.35 halls, linked bingo game providers, and gambling managers for 98.36 failure to comply with any provision of this chapter or any rule 99.1 or order of the board; 99.2 (10) to issue premises permits to organizations licensed to 99.3 conduct lawful gambling; 99.4 (11) to delegate to the director the authority to issue or 99.5 deny license and premises permit applications and renewals under 99.6 criteria established by the board; 99.7 (12) to suspend or revoke licenses and premises permits of 99.8 organizations, distributors, manufacturers, bingo halls, linked 99.9 bingo game providers, or gambling managers as provided in this 99.10 chapter; 99.11 (13) to register employees of organizations licensed to 99.12 conduct lawful gambling; 99.13 (14) to require fingerprints from persons determined by 99.14 board rule to be subject to fingerprinting; 99.15 (15) to delegate to a compliance review group of the board 99.16 the authority to investigate alleged violations, issue consent 99.17 orders, and initiate contested cases on behalf of the board; 99.18 (16) to order organizations, distributors, manufacturers, 99.19 bingo halls, linked bingo game providers, and gambling managers 99.20 to take corrective actions; and 99.21 (17) to take all necessary steps to ensure the integrity of 99.22 and public confidence in lawful gambling. 99.23 (b) The board, or director if authorized to act on behalf 99.24 of the board, may by citation assess any organization, 99.25 distributor, employee eligible to make sales on behalf of a 99.26 distributor, manufacturer, bingo hall licensee, linked bingo 99.27 game provider, or gambling manager a civil penalty of not more 99.28 than $500 per violation for a failure to comply with any 99.29 provision of this chapter or any rule adopted or order issued by 99.30 the board. Any organization, distributor, bingo hall licensee, 99.31 gambling manager, linked bingo game provider, or manufacturer 99.32 assessed a civil penalty under this paragraph may request a 99.33 hearing before the board. Appeals of citations imposing a civil 99.34 penalty are not subject to the provisions of the Administrative 99.35 Procedure Act. 99.36 (c) All fees and penalties received by the board must be 100.1 deposited in the general fund. 100.2 Sec. 8. Minnesota Statutes 2002, section 349.153, is 100.3 amended to read: 100.4 349.153 [CONFLICT OF INTEREST.] 100.5 (a) A person may not serve on the board, be the director, 100.6 or be an employee of the board who has an interest in any 100.7 corporation, association, limited liability company, or 100.8 partnership that is licensed by the board as a distributor, 100.9 manufacturer, linked bingo game provider, orabingo hall under 100.10 section 349.164. 100.11 (b) A member of the board, the director, or an employee of 100.12 the board may not accept employment with, receive compensation 100.13 directly or indirectly from, or enter into a contractual 100.14 relationship with an organization that conducts lawful gambling, 100.15 a distributor, a linked bingo game provider, a bingo hall, or a 100.16 manufacturer while employed with or a member of the board or 100.17 within one year after terminating employment with or leaving the 100.18 board. 100.19 (c) A distributor, bingo hall, manufacturer, linked bingo 100.20 game provider, or organization licensed to conduct lawful 100.21 gambling may not hire a former employee, director, or member of 100.22 the gambling control board for one year after the employee, 100.23 director, or member has terminated employment with or left the 100.24 gambling control board. 100.25 Sec. 9. Minnesota Statutes 2002, section 349.155, 100.26 subdivision 3, is amended to read: 100.27 Subd. 3. [MANDATORY DISQUALIFICATIONS.] (a) In the case of 100.28 licenses for manufacturers, distributors, bingo halls, linked 100.29 bingo game providers, and gambling managers, the board may not 100.30 issue or renew a license under this chapter, and shall revoke a 100.31 license under this chapter, if the applicant or licensee, or a 100.32 director, officer, partner, governor, person in a supervisory or 100.33 management position of the applicant or licensee, or an employee 100.34 eligible to make sales on behalf of the applicant or licensee: 100.35 (1) has ever been convicted of a felony or a crime 100.36 involving gambling; 101.1 (2) has ever been convicted of (i) assault, (ii) a criminal 101.2 violation involving the use of a firearm, or (iii) making 101.3 terroristic threats; 101.4 (3) is or has ever been connected with or engaged in an 101.5 illegal business; 101.6 (4) owes $500 or more in delinquent taxes as defined in 101.7 section 270.72; 101.8 (5) had a sales and use tax permit revoked by the 101.9 commissioner of revenue within the past two years; or 101.10 (6) after demand, has not filed tax returns required by the 101.11 commissioner of revenue. The board may deny or refuse to renew 101.12 a license under this chapter, and may revoke a license under 101.13 this chapter, if any of the conditions in this paragraph are 101.14 applicable to an affiliate or direct or indirect holder of more 101.15 than a five percent financial interest in the applicant or 101.16 licensee. 101.17 (b) In the case of licenses for organizations, the board 101.18 may not issue or renew a license under this chapter, and shall 101.19 revoke a license under this chapter, if the organization, or an 101.20 officer or member of the governing body of the organization: 101.21 (1) has been convicted of a felony or gross misdemeanor 101.22 within the five years before the issuance or renewal of the 101.23 license; 101.24 (2) has ever been convicted of a crime involving gambling; 101.25 or 101.26 (3) has had a license issued by the board or director 101.27 permanently revoked for violation of law or board rule. 101.28 Sec. 10. Minnesota Statutes 2002, section 349.163, 101.29 subdivision 3, is amended to read: 101.30 Subd. 3. [PROHIBITED SALES.] (a) A manufacturer may not: 101.31 (1) sell gambling equipment for use or resale within the 101.32 state to any person not licensed as a distributor, except that 101.33 gambling equipment used exclusively in a linked bingo game may 101.34 be sold to a licensed linked bingo game provider; or 101.35 (2) sell gambling equipment to a distributor in this state 101.36 that has the same serial number as another item of gambling 102.1 equipment of the same type that is sold by that manufacturer for 102.2 use or resale in this state. 102.3 (b) A manufacturer, affiliate of a manufacturer, or person 102.4 acting as a representative or agent of a manufacturer may not 102.5 provide a lessor of gambling premises or an appointed official 102.6 any compensation, gift, gratuity, premium, contribution, or 102.7 other thing of value. 102.8 (c) A manufacturer may not sell or otherwise provide a 102.9 pull-tab or tipboard deal with the symbol required by 102.10 subdivision 5, paragraph (h), imprinted on the flare to any 102.11 person other than a licensed distributor unless the manufacturer 102.12 first renders the symbol permanently invisible. 102.13 Sec. 11. [349.1635] [LINKED BINGO GAME PROVIDER LICENSE.] 102.14 Subdivision 1. [LICENSE REQUIRED.] No person may do any of 102.15 the following without having first obtained a license from the 102.16 board: 102.17 (1) provide the means to link prizes in a linked bingo 102.18 game; 102.19 (2) provide linked bingo game prize management; 102.20 (3) provide the linked bingo game system; or 102.21 (4) provide linked bingo game paper sheets to an 102.22 organization. 102.23 Subd. 2. [LICENSE APPLICATION.] The board may issue a 102.24 license to a linked bingo game provider who meets the 102.25 qualifications of this chapter and the rules adopted by the 102.26 board. The application shall be on a form prescribed by the 102.27 board. The license is valid for two years and the fee for a 102.28 linked bingo game provider license is $5,000 per year. 102.29 Subd. 3. [ATTACHMENTS TO APPLICATION.] An applicant for a 102.30 linked bingo game provider license must attach to its 102.31 application: 102.32 (1) evidence of a bond in the principal amount of $250,000 102.33 payable to the state of Minnesota conditioned on the payment of 102.34 all linked bingo game prizes and any other money due and payable 102.35 under this chapter; 102.36 (2) detailed plans and specifications for the operation of 103.1 the linked bingo game and the linked bingo game system; and 103.2 (3) any other information required by the board by rule. 103.3 Subd. 4. [PROHIBITION.] (a) Except for services associated 103.4 exclusively with a linked bingo game, a linked bingo game 103.5 provider may not participate or assist in the conduct of lawful 103.6 gambling by an organization. No linked bingo game provider may: 103.7 (1) also be licensed as a bingo hall or hold any financial 103.8 or managerial interest in a bingo hall; 103.9 (2) also be licensed as a distributor or hold any financial 103.10 or managerial interest in a distributor; 103.11 (3) sell or lease linked bingo game equipment to any person 103.12 not licensed as an organization; 103.13 (4) purchase gambling equipment to be used exclusively in a 103.14 linked bingo game from any person not licensed as a manufacturer 103.15 under section 349.163; or 103.16 (5) provide an organization, a lessor of gambling premises, 103.17 or an appointed official any compensation, gift, gratuity, 103.18 premium, or contribution. 103.19 (b) Employees of the board and the division of alcohol and 103.20 gambling enforcement may inspect the books, records, inventory, 103.21 and business premises of a licensed linked bingo game provider 103.22 without notice during the normal business hours of the linked 103.23 bingo game provider. The board may charge a linked bingo game 103.24 provider for the actual cost of conducting scheduled or 103.25 unscheduled inspections of the licensee's facilities. 103.26 Sec. 12. Minnesota Statutes 2002, section 349.166, 103.27 subdivision 1, is amended to read: 103.28 Subdivision 1. [EXCLUSIONS.] (a) Bingo, with the exception 103.29 of linked bingo games, may be conducted without a license and 103.30 without complying with sections 349.168, subdivisions 1 and 2; 103.31 349.17, subdivisions 1, 4, and 5; 349.18, subdivision 1; and 103.32 349.19, if it is conducted: 103.33 (1) by an organization in connection with a county fair, 103.34 the state fair, or a civic celebration and is not conducted for 103.35 more than 12 consecutive days and is limited to no more than 103.36 four separate applications for activities applied for and 104.1 approved in a calendar year; or 104.2 (2) by an organization that conducts four or fewer bingo 104.3 occasions in a calendar year. 104.4 An organization that holds a license to conduct lawful 104.5 gambling under this chapter may not conduct bingo under this 104.6 subdivision. 104.7 (b) Bingo may be conducted within a nursing home or a 104.8 senior citizen housing project or by a senior citizen 104.9 organization if the prizes for a single bingo game do not exceed 104.10 $10, total prizes awarded at a single bingo occasion do not 104.11 exceed $200, no more than two bingo occasions are held by the 104.12 organization or at the facility each week, only members of the 104.13 organization or residents of the nursing home or housing project 104.14 are allowed to play in a bingo game, no compensation is paid for 104.15 any persons who conduct the bingo, and a manager is appointed to 104.16 supervise the bingo. Bingo conducted under this paragraph is 104.17 exempt from sections 349.11 to 349.23, and the board may not 104.18 require an organization that conducts bingo under this 104.19 paragraph, or the manager who supervises the bingo, to register 104.20 or file a report with the board. The gross receipts from bingo 104.21 conducted under the limitations of this subdivision are exempt 104.22 from taxation under chapter 297A. 104.23 (c) Raffles may be conducted by an organization without a 104.24 license and without complying with sections 349.154 to 349.165 104.25 and 349.167 to 349.213 if the value of all raffle prizes awarded 104.26 by the organization in a calendar year does not exceed $750. 104.27 (d) Except as provided in paragraph (b), the organization 104.28 must maintain all required records of excluded gambling activity 104.29 for 3-1/2 years. 104.30 Sec. 13. Minnesota Statutes 2002, section 349.166, 104.31 subdivision 2, is amended to read: 104.32 Subd. 2. [EXEMPTIONS.] (a) Lawful gambling, with the 104.33 exception of linked bingo games, may be conducted by an 104.34 organization without a license and without complying with 104.35 sections 349.168, subdivisions 1 and 2; 349.17, subdivisions 4 104.36 and 5; 349.18, subdivision 1; and 349.19 if: 105.1 (1) the organization conducts lawful gambling on five or 105.2 fewer days in a calendar year; 105.3 (2) the organization does not award more than $50,000 in 105.4 prizes for lawful gambling in a calendar year; 105.5 (3) the organization pays a fee of $25 to the board, 105.6 notifies the board in writing not less than 30 days before each 105.7 lawful gambling occasion of the date and location of the 105.8 occasion, or 60 days for an occasion held in the case of a city 105.9 of the first class, the types of lawful gambling to be 105.10 conducted, the prizes to be awarded, and receives an exemption 105.11 identification number; 105.12 (4) the organization notifies the local government unit 30 105.13 days before the lawful gambling occasion, or 60 days for an 105.14 occasion held in a city of the first class; 105.15 (5) the organization purchases all gambling equipment and 105.16 supplies from a licensed distributor; and 105.17 (6) the organization reports to the board, on a single-page 105.18 form prescribed by the board, within 30 days of each gambling 105.19 occasion, the gross receipts, prizes, expenses, expenditures of 105.20 net profits from the occasion, and the identification of the 105.21 licensed distributor from whom all gambling equipment was 105.22 purchased. 105.23 (b) If the organization fails to file a timely report as 105.24 required by paragraph (a), clause (3) or (6), the board shall 105.25 not issue any authorization, license, or permit to the 105.26 organization to conduct lawful gambling on an exempt, excluded, 105.27 or licensed basis until the report has been filed. 105.28 (c) Merchandise prizes must be valued at their fair market 105.29 value. 105.30 (d) Unused pull-tab and tipboard deals must be returned to 105.31 the distributor within seven working days after the end of the 105.32 lawful gambling occasion. The distributor must accept and pay a 105.33 refund for all returns of unopened and undamaged deals returned 105.34 under this paragraph. 105.35 (e) An organization that is exempt from taxation on 105.36 purchases of pull-tabs and tipboards under section 297E.02, 106.1 subdivision 4, paragraph (b), clause (4), must return to the 106.2 distributor any tipboard or pull-tab deal no part of which is 106.3 used at the lawful gambling occasion for which it was purchased 106.4 by the organization. 106.5 (f) The organization must maintain all required records of 106.6 exempt gambling activity for 3-1/2 years. 106.7 Sec. 14. Minnesota Statutes 2002, section 349.167, 106.8 subdivision 6, is amended to read: 106.9 Subd. 6. [RECRUITMENT OF GAMBLING MANAGERS.] No 106.10 organization may seek or accept assistance from a manufacturer 106.11or, distributor, or linked bingo game provider, or a 106.12 representative, agent, affiliate, or employee of a manufacturer 106.13or, distributor, or linked bingo game provider, in identifying 106.14 or recruiting candidates to become a gambling manager for the 106.15 organization. 106.16 Sec. 15. Minnesota Statutes 2002, section 349.17, 106.17 subdivision 3, is amended to read: 106.18 Subd. 3. [WINNERS.] Each bingo winner must be determined 106.19 and every prize shall be awarded and delivered the same day on 106.20 which the bingo occasion is conducted, except that prizes won in 106.21 a linked bingo game must be delivered within three business days 106.22 of the day on which the occasion was conducted. 106.23 Sec. 16. Minnesota Statutes 2002, section 349.17, 106.24 subdivision 6, is amended to read: 106.25 Subd. 6. [CONDUCT OF BINGO.] (a) Each bingo hard card and 106.26 paper sheets must have five horizontal rows of spaces with each 106.27 row except one having five numbers. The center row must have 106.28 four numbers and the center space marked "free." Each column 106.29 must have one of the letters B-I-N-G-O in order at the top. 106.30 Bingo paper sheets may also have numbers that are not preprinted 106.31 but are filled in by players. 106.32 (b) A game of bingo begins with the first letter and number 106.33 called. Each player must cover or mark with a liquid dauber the 106.34 numbers when bingo balls, similarly numbered, are randomly 106.35 drawn, announced, and displayed to the players, either manually 106.36 or with a flashboard and monitor. The game is won when a player 107.1 has covered or marked a previously designated arrangement of 107.2 numbers on the card or sheet and declared bingo. The game is 107.3 completed when a winning card or sheet is verified and a prize 107.4 awarded, except that prizes won in linked bingo games may be 107.5 awarded pursuant to subdivision 3. 107.6 Sec. 17. Minnesota Statutes 2002, section 349.17, 107.7 subdivision 7, is amended to read: 107.8 Subd. 7. [NOON HOUR BINGO.] Notwithstanding subdivisions 1 107.9 and 3, an organization may conduct bingo subject to the 107.10 following restrictions: 107.11 (1) the bingo is conducted only between the hours of 11:00 107.12 a.m. and 2:00 p.m.; 107.13 (2) the bingo is conducted at a site the organization owns 107.14 or leases and which has a license for the sale of intoxicating 107.15 beverages on the premises under chapter 340A; 107.16 (3) the bingo is limited to one progressive bingo game per 107.17 site as defined by section 349.211, subdivision 2; 107.18 (4) the bingo is conducted using only bingo paper sheets; 107.19and107.20 (5) if the premises are leased, the rent may not exceed $25 107.21 per day for each day bingo is conducted; and 107.22 (6) linked bingo games may not be conducted at a noon hour 107.23 bingo occasion. 107.24 Sec. 18. Minnesota Statutes 2002, section 349.17, is 107.25 amended by adding a subdivision to read: 107.26 Subd. 8. [LINKED BINGO GAMES.] (a) A licensed organization 107.27 may conduct or participate in a linked bingo game in association 107.28 with one or more other licensed organizations. 107.29 (b) Each participating licensed organization shall 107.30 contribute to each prize awarded in a linked bingo game in an 107.31 amount not to exceed $300 per occasion. 107.32 (c) The board may adopt rules to: 107.33 (1) specify the manner in which a linked bingo game must be 107.34 played and how the linked bingo prizes must be awarded; 107.35 (2) specify the records to be maintained by a linked bingo 107.36 game provider; 108.1 (3) require the submission of periodic reports by the 108.2 linked bingo game provider and specify the content of the 108.3 reports; 108.4 (4) establish the qualifications required to be licensed as 108.5 a linked bingo game provider; and 108.6 (5) any other matter involving the operation of a linked 108.7 bingo game. 108.8 Sec. 19. Minnesota Statutes 2002, section 349.18, 108.9 subdivision 1, is amended to read: 108.10 Subdivision 1. [LEASE OR OWNERSHIP REQUIRED.] (a) An 108.11 organization may conduct lawful gambling only on premises it 108.12 owns or leases. Leases must be on a form prescribed by the 108.13 board. Except for leases entered into before August 1, 1994, 108.14 the term of the lease may not begin before the effective date of 108.15 the premises permit and must expire on the same day that the 108.16 premises permit expires. Copies of all leases must be made 108.17 available to employees of the board and the division of alcohol 108.18 and gambling enforcement on request. A lease may not provide 108.19 for payments determined directly or indirectly by the receipts 108.20 or profits from lawful gambling. The board may prescribe by 108.21 rule limits on the amount of rent which an organization may pay 108.22 to a lessor for premises leased for lawful gambling provided 108.23 that no rule of the board may prescribe a limit of less than 108.24 $1,000 per month on rent paid for premises used for lawful 108.25 gambling other than bingo. Any rule adopted by the board 108.26 limiting the amount of rent to be paid may only be effective for 108.27 leases entered into, or renewed, after the effective date of the 108.28 rule. 108.29 (b) No person, distributor, manufacturer, lessor, linked 108.30 bingo game provider, or organization other than the licensed 108.31 organization leasing the space may conduct any activity other 108.32 than the sale or serving of food and beverages on the leased 108.33 premises during times when lawful gambling is being conducted on 108.34 the premises. 108.35 (c) At a site where the leased premises consists of an area 108.36 on or behind a bar at which alcoholic beverages are sold and 109.1 employees of the lessor are employed by the organization as 109.2 pull-tab sellers at the site, pull-tabs and tipboard tickets may 109.3 be sold and redeemed by those employees at any place on or 109.4 behind the bar, but the tipboards and receptacles for pull-tabs 109.5 and cash drawers for lawful gambling receipts must be maintained 109.6 only within the leased premises. 109.7 (d) Employees of a lessor may participate in lawful 109.8 gambling on the premises provided (1) if pull-tabs or tipboards 109.9 are sold, the organization voluntarily posts, or is required to 109.10 post, the major prizes as specified in section 349.172; and (2) 109.11 any employee of the lessor participating in lawful gambling is 109.12 not a gambling employee for the organization conducting lawful 109.13 gambling on the premises. 109.14 (e) A gambling employee may purchase pull-tabs at the site 109.15 of the employee's place of employment provided: 109.16 (1) the organization voluntarily posts, or is required to 109.17 post, the major prizes for pull-tab or tipboard games as 109.18 specified in section 349.172; and 109.19 (2) the employee is not involved in the sale of pull-tabs 109.20 at that site. 109.21 (f) At a leased site where an organization uses a 109.22 paddlewheel consisting of 30 numbers or less or a tipboard 109.23 consisting of 30 tickets or less, tickets may be sold throughout 109.24 the permitted premises, but winning tickets must be redeemed, 109.25 the paddlewheel must be located, and the tipboard seal must be 109.26 opened within the leased premises. 109.27 Sec. 20. Minnesota Statutes 2002, section 349.19, is 109.28 amended by adding a subdivision to read: 109.29 Subd. 2b. [LINKED BINGO PRIZE POOL ACCOUNT.] A licensed 109.30 organization participating in a linked bingo game must maintain 109.31 a separate account in a bank for the deposit of the 109.32 organization's portion of the linked bingo game prize pool. The 109.33 name of the bank, the account number, and authorization for 109.34 electronic funds transfer must be provided by the organization 109.35 to the linked bingo game provider. Deposits must be made into 109.36 the account by the organization as designated by the linked 110.1 bingo game provider. Money in the account must be available to 110.2 the linked bingo game provider at all times by electronic funds 110.3 transfer, unless the linked bingo game provider agrees to the 110.4 transfer of the funds by other means. 110.5 Sec. 21. Minnesota Statutes 2002, section 349.191, 110.6 subdivision 1, is amended to read: 110.7 Subdivision 1. [CREDIT RESTRICTION.] A manufacturer may 110.8 not offer or extend to a distributor, a linked bingo game 110.9 provider may not offer or extend to an organization, and a 110.10 distributor may not offer or extend to an organization, credit 110.11 for a period of more than 30 days for the sale or lease of any 110.12 gambling equipment. No right of action exists for the 110.13 collection of any claim based on credit prohibited by this 110.14 subdivision. The 30-day period allowed by this subdivision 110.15 begins with the day immediately following the day of invoice and 110.16 includes all successive days, including Sundays and holidays, to 110.17 and including the 30th successive day. 110.18 Sec. 22. Minnesota Statutes 2002, section 349.191, 110.19 subdivision 1a, is amended to read: 110.20 Subd. 1a. [CREDIT AND SALES TO DELINQUENT ORGANIZATIONS.] 110.21 (a) If a distributor or linked bingo game provider does not 110.22 receive payment in full from an organization within 35 days of 110.23 the day immediately following the date of the invoice, the 110.24 distributor or linked bingo game provider must notify the board 110.25 in writing of the delinquency on the next business day. 110.26 (b) If a distributor or linked bingo game provider who has 110.27 notified the board under paragraph (a) has not received payment 110.28 in full from the organization within 60 days of the notification 110.29 under paragraph (a), the distributor or linked bingo game 110.30 provider must notify the board of the continuing delinquency. 110.31 (c) On receipt of a notice under paragraph (a), the board 110.32 shall order all distributors and linked bingo game providers 110.33 that until further notice from the board, they may sell gambling 110.34 equipment to the delinquent organizations only on a cash basis 110.35 with no credit extended. On receipt of a notice under paragraph 110.36 (b), the board shall order all distributors and linked bingo 111.1 game providers not to sell any gambling equipment to the 111.2 delinquent organization. 111.3 (d) No distributor or linked bingo game provider may extend 111.4 credit or sell gambling equipment to an organization in 111.5 violation of an order under paragraph (c) until the board has 111.6 authorized such credit or sale. 111.7 Sec. 23. Minnesota Statutes 2002, section 349.211, 111.8 subdivision 1, is amended to read: 111.9 Subdivision 1. [BINGO.] Except as provided in 111.10subdivisionsubdivisions 1a and 2, prizes for a single bingo 111.11 game may not exceed $200 except prizes for a cover-all game, 111.12 which may exceed $200 if the aggregate value of all cover-all 111.13 prizes in a bingo occasion does not exceed $1,000. Total prizes 111.14 awarded at a bingo occasion may not exceed $2,500, unless a 111.15 cover-all game is played in which case the limit is $3,500. A 111.16 prize may be determined based on the value of the bingo packet 111.17 sold to the player. For purposes of this subdivision, a 111.18 cover-all game is one in which a player must cover all spaces 111.19 except a single free space to win. 111.20 Sec. 24. Minnesota Statutes 2002, section 349.211, is 111.21 amended by adding a subdivision to read: 111.22 Subd. 1a. [LINKED BINGO PRIZES.] Prizes for a linked bingo 111.23 game shall be limited as follows: 111.24 (1) no organization may contribute more than $300 per 111.25 occasion to a linked bingo game prize pool; and 111.26 (2) if an organization contributes to a linked bingo game 111.27 prize pool, the organization's aggregate value of cover-all 111.28 prizes available during the bingo occasion must be reduced by 111.29 the amount contributed to the linked bingo game prize pool.