Minnesota Legislature
Office of the Revisor of Statutes
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Minnesota Session Laws - 2003, 1st Special Session
Key: (1) language to be deleted (2) new language
CHAPTER 1-H.F.No. 1
An act relating to state government; appropriating
money for the general legislative and administrative
expenses of state government and economic development;
modifying provisions related to state and local
government operations; modifying certain fee and
revenue provisions; requiring certain contractor
bonding; requiring licensure of certain gambling
equipment sales persons; modifying provisions of
various state boards and commissions; modifying
certain insurance provisions; modifying certain
cosmetology provisions; modifying certain lawful
gambling provisions; requiring studies; amending
Minnesota Statutes 2002, sections 3.885, subdivision
1; 3.971, subdivision 2; 6.48; 6.49; 6.54; 6.55; 6.64;
6.65; 6.66; 6.67; 6.68, subdivision 1; 6.70; 6.71;
6.74; 8.06; 10A.01, subdivision 21; 10A.02, by adding
a subdivision; 10A.025, subdivision 2; 10A.03,
subdivision 1; 10A.04, subdivisions 1, 2, 4, 5, 6, by
adding a subdivision; 10A.34, subdivision 1a; 14.091;
14.48, by adding a subdivision; 16A.102, subdivision
1; 16A.11, subdivision 3; 16A.1285, subdivision 3;
16A.151, subdivision 5; 16A.17, by adding a
subdivision; 16A.40; 16A.501; 16A.642, subdivision 1;
16B.24, subdivision 5; 16B.35, subdivision 1; 16B.465,
subdivisions 1a, 7; 16B.47; 16B.48, subdivision 2;
16C.02, subdivision 6; 16C.03, by adding a
subdivision; 16C.05, subdivision 2, by adding a
subdivision; 16C.06, subdivision 1; 16C.08,
subdivisions 2, 3, 4, by adding a subdivision; 16C.10,
subdivision 7; 16D.08, subdivision 2; 16E.01,
subdivision 3; 16E.07, subdivision 9; 43A.17,
subdivision 9; 69.772, subdivision 2; 115A.929;
116J.8771; 197.608; 237.49; 237.52, subdivision 3;
237.701, subdivision 1; 240.03; 240.10; 240.15,
subdivision 6; 240.155, subdivision 1; 240A.03,
subdivision 10; 240A.04; 240A.06, subdivision 1;
256B.435, subdivision 2a; 268.186; 270.052; 270.44;
270A.07, subdivision 1; 289A.08, subdivision 16;
306.95; 349.12, subdivision 25, by adding a
subdivision; 349.151, subdivisions 4, 4b; 349.155,
subdivision 3; 349.16, subdivision 6; 349.161,
subdivisions 1, 4, 5; 349.162, subdivision 1; 349.163,
subdivisions 2, 6; 349.164, subdivision 4; 349.165,
subdivision 3; 349.166, subdivisions 1, 2; 349A.08,
subdivision 5; 403.02, subdivision 10; 403.06; 403.07,
subdivisions 1, 2, 3; 403.09, subdivision 1; 403.11;
403.113; 458D.17, subdivision 5; 471.696; 471.999;
473.891, subdivision 10, by adding a subdivision;
473.898, subdivisions 1, 3; 473.901; 473.902, by
adding a subdivision; 473.907, subdivision 1;
477A.014, subdivision 4; Laws 1998, chapter 366,
section 80, as amended; Laws 2002, chapter 331,
section 19; proposing coding for new law in Minnesota
Statutes, chapters 3A; 6; 16C; 43A; 60A; 326; 349;
repealing Minnesota Statutes 2002, sections 3.305,
subdivision 5; 3.971, subdivision 8; 3A.11; 4A.055;
6.77; 12.221, subdivision 5; 16A.87; 16B.50; 16C.07;
16E.09; 149A.97, subdivision 8; 155A.03, subdivisions
14, 15; 155A.07, subdivision 9; 163.10; 306.97;
Minnesota Rules, part 1950.1070.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
STATE GOVERNMENT APPROPRIATIONS
Section 1. [STATE GOVERNMENT APPROPRIATIONS.]
The sums shown in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or another fund named, to
the agencies and for the purposes specified in this act, to be
available for the fiscal years indicated for each purpose. The
figures "2003," "2004," and "2005," where used in this act, mean
that the appropriation or appropriations listed under them are
available for the year ending June 30, 2003, June 30, 2004, or
June 30, 2005, respectively.
SUMMARY BY FUND
2004 2005 TOTAL
General $ 264,857,000 $ 267,568,000 $ 532,425,000
For 2003 - $369,000
Health Care
Access 1,782,000 1,782,000 3,564,000
State Government
Special Revenue 25,024,000 31,629,000 56,653,000
Environmental 520,000 436,000 956,000
Remediation 484,000 484,000 968,000
Special Revenue 2,947,000 2,947,000 5,894,000
Highway User Tax
Distribution 2,097,000 2,097,000 4,194,000
Workers'
Compensation 7,286,000 7,349,000 14,635,000
TOTAL $ 304,997,000 $ 314,292,000 $ 619,289,000
APPROPRIATIONS
Available for the Year
Ending June 30
2004 2005
Sec. 2. LEGISLATURE
Subdivision 1. Total
Appropriation $58,328,000 $58,328,000
Summary by Fund
General 58,200,000 58,200,000
Health Care Access 128,000 128,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Senate
19,319,000 19,319,000
Subd. 3. House of Representatives
25,993,000 25,993,000
Subd. 4. Legislative
Coordinating Commission
13,016,000 13,016,000
Summary by Fund
General 12,888,000 12,888,000
Health Care Access 128,000 128,000
$5,023,000 the first year and
$5,023,000 the second year are for the
office of the revisor of statutes.
$1,086,000 the first year and
$1,086,000 the second year are for the
legislative reference library.
$4,623,000 the first year and
$4,623,000 the second year are for the
office of the legislative auditor.
$360,000 the first year and $360,000
the second year are for public
information television, Internet,
Intranet, and other transmission of
legislative activities. At least
one-half must go for programming to be
broadcast and transmitted to rural
Minnesota.
During the biennium ending June 30,
2005, the legislative coordinating
commission, the office of the
legislative auditor, and the office of
the revisor of statutes are not subject
to the limitations in uses of funds
provided under Minnesota Statutes,
section 16A.281.
During the biennium ending June 30,
2005, a legislative commission or
subcommittee of the legislative
coordinating commission may by
resolution adopt per diem payments for
members attending commission meetings
that are less than the payments
permitted by rules of the house of
representatives and the senate.
(a) If the legislative coordinating
commission requires employees under its
jurisdiction to take temporary leave
without pay during the biennium ending
June 30, 2005, the first 80 hours of
leave without pay in fiscal year 2004
and the first 80 hours of leave without
pay in fiscal year 2005 are governed by
this paragraph. The commission must
permit employees taking this leave to
continue accruing vacation and sick
leave, be eligible for paid holidays
and insurance benefits, accrue
seniority, and accrue service credit
and credited salary in state retirement
plans permitting service credits for
authorized leaves of absence as if the
employee had actually been employed
during the time of the leave. The
commission may make the employer
contribution to the employee's
retirement plan if the employee
participates in a defined contribution
plan. If the leave without pay is for
one full pay period or longer, any
holiday pay must be included in the
first payroll warrant after return from
the leave. Managers must attempt to
schedule leaves to meet the needs of
employees and the need to continue
efficient operation of their offices.
(b) Notwithstanding Minnesota Statutes,
section 43A.18, subdivisions 2 and 3,
the legislative coordinating commission
may require employees in the office of
the legislative auditor whose terms and
conditions of employment are determined
through the commissioner and managerial
compensation plans to take leave
without pay as described in paragraph
(a).
Sec. 3. GOVERNOR AND
LIEUTENANT GOVERNOR 3,586,000 3,586,000
This appropriation is to fund the
offices of the governor and lieutenant
governor.
$19,000 the first year and $19,000 the
second year are for necessary expenses
in the normal performance of the
governor's and lieutenant governor's
duties for which no other reimbursement
is provided.
By September 1 of each year, the
commissioner of finance shall report to
the chairs of the senate governmental
operations budget division and the
house state government finance division
any personnel costs incurred by the
office of the governor and lieutenant
governor that were supported by
appropriations to other agencies during
the previous fiscal year. The office
of the governor shall inform the chairs
of the divisions before initiating any
interagency agreements.
Sec. 4. STATE AUDITOR 8,306,000 8,306,000
Sec. 5. ATTORNEY GENERAL 24,800,000 24,779,000
Summary by Fund
General 22,559,000 22,559,000
State Government
Special Revenue 1,612,000 1,591,000
Environmental 145,000 145,000
Remediation 484,000 484,000
Sec. 6. SECRETARY OF STATE 5,912,000 6,032,000
For 2003 - $369,000
$369,000 is appropriated in fiscal year
2003 from the general fund to the
secretary of state for payment of the
attorney fees awarded by court order in
Zachman et al. vs. Kiffmeyer et al.
This is a onetime appropriation and not
added to the secretary of state's base
budget.
Sec. 7. CAMPAIGN FINANCE AND
PUBLIC DISCLOSURE BOARD 712,000 712,000
Sec. 8. INVESTMENT BOARD 2,167,000 2,167,000
Sec. 9. ADMINISTRATIVE HEARINGS 7,186,000 7,249,000
This appropriation is from the workers'
compensation fund.
Fee rates charged during fiscal years
2004 and 2005 by the Administrative Law
Division of the Office of
Administrative Hearings must be reduced
by ten percent from fiscal year 2003
levels.
Sec. 10. OFFICE OF STRATEGIC
AND LONG-RANGE PLANNING 3,314,000 3,314,000
$50,000 the first year and $50,000 the
second year are for a grant to the
Northern Counties Land Use Coordinating
Board for purposes of the pilot project
established in Laws 2002, chapter 373,
section 33. The pilot project is
extended until June 30, 2005. This is
a onetime appropriation.
Sec. 11. ADMINISTRATION
Subdivision 1. Total
Appropriation 21,422,000 20,922,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Operations Management
2,669,000 2,669,000
The commissioner of administration, in
consultation with heads of other
executive agencies, must identify state
agency: (1) telecommunication device
usage; and (2) vehicle usage, that is
not cost-efficient. The commissioner
must implement policies to reduce usage
that is found not to be
cost-efficient. The commissioner must
report to the legislature by January
15, 2004, on implementation of this
section, including savings achieved by
eliminating usage that is not
cost-efficient.
Subd. 3. Office of Technology
2,479,000 2,479,000
Subd. 4. Facilities Management
11,541,000 11,041,000
$7,888,000 the first year and
$7,888,000 the second year are for
office space costs of the legislature
and veterans organizations, for
ceremonial space, and for statutorily
free space.
$500,000 the first year is for onetime
funding of agency relocation expenses.
$2,050,000 in the first year and
$2,050,000 in the second year of the
balance in the facility repair and
replacement account in the state
government special revenue fund is
canceled to the general fund. This
amount is in addition to amounts
transferred under Minnesota Statutes,
section 16B.24, subdivision 5.
Subd. 5. Management Services
2,830,000 2,830,000
$196,000 the first year and $196,000
the second year are for the office of
the state archaeologist.
$74,000 the first year and $74,000 the
second year are for the developmental
disabilities council.
Subd. 6. Public Broadcasting
1,903,000 1,903,000
$1,175,000 the first year and
$1,175,000 the second year are for
matching grants for public television.
$203,000 the first year and $203,000
the second year are for public
television equipment grants.
Equipment or matching grant allocations
shall be made after considering the
recommendations of the Minnesota public
television association.
$17,000 the first year and $17,000 the
second year are for grants to the Twin
Cities regional cable channel.
$313,000 the first year and $313,000
the second year are for community
service grants to public educational
radio stations. The grants must be
allocated after considering the
recommendations of the association of
Minnesota public educational radio
stations under Minnesota Statutes,
section 129D.14.
$195,000 the first year and $195,000
the second year are for equipment
grants to Minnesota Public Radio, Inc.
Any unencumbered balance remaining the
first year for grants to public
television or radio stations does not
cancel and is available for the second
year.
Sec. 12. CAPITOL AREA ARCHITECTURAL
AND PLANNING BOARD 262,000 262,000
During the biennium ending June 30,
2005, money received by the board from
public agencies, as provided by
Minnesota Statutes, section 15.50,
subdivision 40, is appropriated to the
board.
Sec. 13. FINANCE
Subdivision 1. Total
Appropriation 15,216,000 15,216,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. State Financial Management
8,711,000 8,711,000
Subd. 3. Information and
Management Services
6,505,000 6,505,000
Sec. 14. EMPLOYEE RELATIONS
Subdivision 1. Total
Appropriation 6,188,000 6,188,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Employee Insurance
63,000 63,000
Subd. 3. Human Resources Management
6,125,000 6,125,000
The commissioner of employee relations
shall convene a work group to study the
structure of current human resources
processes and responsibilities related
to technology systems. The study
should include:
(1) an analysis of the current division
of labor for completing standard human
resource electronic transactions;
(2) opportunities for improvements to
the current structure that will create
more effective and efficient methods of
operation;
(3) the recommended course of action to
maximize the use of statewide systems
and resources; and
(4) a plan to address any fiscal impact
necessitated by the proposed plan.
The commissioner must provide a report
of findings to the chairs of the house
state government finance committee and
senate state government budget division
by January 19, 2004.
Subd. 4. Insurance Contingency Reserve
By June 30, 2005, the commissioner of
finance shall transfer $23,000,000 of
the contingency reserve within the
employee insurance trust fund
maintained under Minnesota Statutes,
section 43A.30, subdivision 6, to the
general fund.
Sec. 15. REVENUE
Subdivision 1. Total
Appropriation 93,442,000 97,596,000
Summary by Fund
General 89,316,000 93,554,000
Health Care Access 1,654,000 1,654,000
Highway User
Tax Distribution 2,097,000 2,097,000
Environmental 375,000 291,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Tax System Management
78,842,000 81,872,000
Summary by Fund
General 74,716,000 77,830,000
Health Care Access 1,654,000 1,654,000
Highway User
Tax Distribution 2,097,000 2,097,000
Environmental 375,000 291,000
$2,742,000 the first year and
$5,856,000 the second year are for
additional activities to identify and
collect tax liabilities from
individuals and businesses that
currently do not pay all taxes owed.
This initiative is expected to result
in new general fund revenues of
$59,838,000 for the biennium ending
June 30, 2005.
The department must report to the
chairs of the house ways and means and
senate finance committees by March 1,
2004, and January 15, 2005, on the
following performance indicators:
(1) the number of corporations
noncompliant with the corporate tax
system each year and the percentage and
dollar amounts of valid tax liabilities
collected;
(2) the number of businesses
noncompliant with the sales and use tax
system and the percentage and dollar
amounts of the valid tax liabilities
collected; and
(3) the number of individual
noncompliant cases resolved and the
percentage and dollar amounts of valid
tax liabilities collected.
The reports must also identify base
level expenditures and staff positions
related to compliance and audit
activities, including baseline
information as of January 1, 2002. The
information must be provided at the
budget activity level.
$30,000 from the general fund the first
year and $30,000 from the general fund
the second year are for the preparation
of the income tax sample.
Subd. 3. Accounts Receivable Management
14,600,000 15,724,000
$1,558,000 the first year and
$2,682,000 the second year are for
additional activities to identify and
collect tax liabilities from
individuals and businesses that
currently do not pay all taxes owed.
Sec. 16. MILITARY AFFAIRS
Subdivision 1. Total
Appropriation 12,279,000 12,279,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Maintenance of Training
Facilities
5,590,000 5,590,000
Subd. 3. General Support
1,757,000 1,757,000
Subd. 4. Enlistment Incentives
4,857,000 4,857,000
If appropriations for either year of
the biennium are insufficient, the
appropriation from the other year is
available. The appropriations for
enlistment incentives are available
until expended.
$500,000 of the appropriation in Laws
2001, First Special Session chapter 10,
article 1, section 17, subdivision 4,
for enlistment incentives is canceled
to the general fund.
Subd. 5. Emergency Services
75,000 75,000
These appropriations are for expenses
of military forces ordered to active
duty under Minnesota Statutes, chapter
192. If the appropriation for either
year is insufficient, the appropriation
for the other year is available for it.
Sec. 17. VETERANS AFFAIRS 4,188,000 4,138,000
$186,000 of the appropriation in Laws
1997, chapter 202, article 1, section
19, and Laws 1999, chapter 250, article
1, section 18, for the Gulf War bonus
program is canceled to the general fund.
$10,000 of the appropriation in Laws
1997, chapter 202, article 1, section
19, for the Park Rapids veterans
memorial is canceled to the general
fund.
$200,000 the first year and $150,000
the second year are for grants to
Vinland Center. This is a onetime
appropriation and does not become part
of the base.
Sec. 18. VETERANS OF FOREIGN
WARS 55,000 55,000
For carrying out the provisions of Laws
1945, chapter 455.
Sec. 19. MILITARY ORDER OF
THE PURPLE HEART 20,000 20,000
Sec. 20. DISABLED AMERICAN VETERANS 13,000 13,000
For carrying out the provisions of Laws
1941, chapter 425.
Sec. 21. GAMBLING CONTROL 2,728,000 2,526,000
Summary by Fund
General 202,000 -0-
Special Revenue 2,526,000 2,526,000
The general fund appropriation in
fiscal year 2004 is intended to assist
with the transition to fee-based
funding. The commissioner of finance
must approve the use of this onetime
appropriation and must require that it
be reimbursed to the general fund if
sufficient resources are available in
the special revenue fund.
The special revenue fund appropriation
is made from the lawful gambling
regulation account.
Sec. 22. RACING COMMISSION 525,000 421,000
Summary by Fund
General 104,000 -0-
Special Revenue 421,000 421,000
The general fund appropriation in
fiscal year 2004 is intended to assist
with the transition to fee-based
funding. The commissioner of finance
must approve the use of this onetime
appropriation and must require that it
be reimbursed to the general fund from
the special revenue fund.
The special revenue fund appropriation
is made from the racing and card
playing regulation account.
Sec. 23. STATE LOTTERY
Notwithstanding Minnesota Statutes,
section 349A.10, the operating budget
must not exceed $43,538,000 in fiscal
year 2004 and $43,538,000 in fiscal
year 2005 and thereafter. The savings
must be transferred 60 percent to the
general fund in the state treasury and
40 percent to the Minnesota environment
and natural resources trust fund in the
state treasury.
Sec. 24. AMATEUR SPORTS
COMMISSION 525,000 525,000
$225,000 the first year and $225,000
the second year may only be spent up to
the amount of offsetting fee revenue
generated by the commission under
Minnesota Statutes, section 240A.03.
Sec. 25. TORT CLAIMS 161,000 161,000
To be spent by the commissioner of
finance.
If the appropriation for either year is
insufficient, the appropriation for the
other year is available for it.
Sec. 26. MINNESOTA STATE
RETIREMENT SYSTEM 2,518,000 2,727,000
The amounts estimated to be needed for
each program are as follows:
(a) Legislators
2,150,000 2,300,000
Under Minnesota Statutes, sections
3A.03, subdivision 2; 3A.04,
subdivisions 3 and 4; and 3A.11.
(b) Constitutional Officers
368,000 427,000
Under Minnesota Statutes, sections
352C.031, subdivision 5; 352C.04,
subdivision 3; and 352C.09, subdivision
2.
If an appropriation in this section for
either year is insufficient, the
appropriation for the other year is
available for it.
Sec. 27. MINNEAPOLIS EMPLOYEES
RETIREMENT FUND 6,632,000 6,632,000
Sec. 28. GENERAL CONTINGENT
ACCOUNTS 1,500,000 500,000
Summary by Fund
General 1,000,000 -0-
State Government
Special Revenue 400,000 400,000
Workers'
Compensation 100,000 100,000
The appropriations in this section may
only be spent with the approval of the
governor after consultation with the
legislative advisory commission
pursuant to Minnesota Statutes, section
3.30.
If an appropriation in this section for
either year is insufficient, the
appropriation for the other year is
available for it.
Sec. 29. PUBLIC SAFETY 23,012,000 29,640,000
This appropriation is from the state
government special revenue fund for 911
emergency telecommunications services.
(a) Public Safety Answering Points
6,970,000 8,522,000
To be distributed as provided in
Minnesota Statutes, section 403.113,
subdivision 2.
This appropriation may only be used for
public safety answering points that
have implemented enhanced 911 service
or whose governmental agency has made a
binding commitment to the commissioner
of public safety to implement enhanced
911 service by January 1, 2008.
(b) Consolidation and Minimum Standards
Study
150,000 -0-
The public safety radio communication
system planning committee shall study
and make recommendations on the
feasibility of consolidating public
safety answering points. In making
recommendations, the planning committee
must consider a cost-benefit analysis
of consolidations, the impact on public
safety, interoperability issues, and
best practices models.
In addition, the planning committee
shall recommend minimum standards for
public safety answering points and
recommend possible funding incentives
for consolidation. The planning
committee shall report its findings to
the chairs of the senate crime
prevention and public safety committee,
the senate state government budget
division, and the house judiciary
policy and finance committee by January
15, 2004.
Sec. 30. [GENERAL REDUCTION.]
The commissioner of finance shall reduce general fund
appropriations to executive branch state agencies for state
agency operations in the biennium ending June 30, 2005, by
$17,581,000. The reduction to the Minnesota state colleges and
universities must not be more than $2,500,000. The reductions
to state constitutional officers must be the same percentage of
each officer's general fund appropriation.
Sec. 31. [SALE OF STATE LAND.]
Subdivision 1. [STATE LAND SALES.] The commissioner of
administration shall coordinate with the head of each department
or agency having control of state-owned land to identify and
sell at least $5,505,000 of state-owned land. Sales should be
completed according to law and as provided in this section as
soon as practicable but no later than June 30, 2005.
Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, or
any other law to the contrary, the commissioner may offer land
for public sale by only providing notice of lands or an offer of
sale of lands to state departments or agencies, the University
of Minnesota, cities, counties, towns, school districts, or
other public entities.
Subd. 2. [ANTICIPATED SAVINGS.] Notwithstanding Minnesota
Statutes, section 94.16, subdivision 3, or other law to the
contrary, the amount of the proceeds from the sale of land under
this section that exceeds the actual expenses of selling the
land must be deposited in the general fund, except as otherwise
provided by the commissioner of finance. Notwithstanding
Minnesota Statutes, section 94.11, the commissioner of finance
may establish the timing of payments for land purchased under
this section. If the total of all money deposited into the
general fund from the proceeds of the sale of land under this
section is anticipated to be less than $5,505,000, the governor
must allocate the amount of the difference as reductions to
general fund operating expenditures for other executive agencies
for the biennium ending June 30, 2005.
Subd. 3. [STATE LAND SALES FOR CONSIDERATION.] Based on
the inventory of state-owned land under Laws 2002, chapter 393,
section 36, the commissioner of administration with the
cooperation of the responsible agency head may consider the
following for sale under this section:
(1) the BCA property at 1246 University Avenue in St. Paul
with a public use classification of "to be determined"; and
(2) other land identified as surplus in the inventory of
state-owned land.
Subd. 4. [SALE OF STATE LANDS REVOLVING LOAN
FUND.] $180,075 is appropriated from the general fund in fiscal
year 2004 to the commissioner of administration for purposes of
paying the actual expenses of selling state-owned lands to
achieve the anticipated savings required in this section. From
the gross proceeds of land sales under this section, the
commissioner of administration must cancel the amount of the
appropriation in this subdivision to the general fund by June
30, 2005.
Sec. 32. [EFFECTIVE DATE.]
The appropriations for fiscal year 2003 are effective the
day following final enactment.
ARTICLE 2
STATE GOVERNMENT OPERATIONS
Section 1. Minnesota Statutes 2002, section 3.885,
subdivision 1, is amended to read:
Subdivision 1. [MEMBERSHIP.] The legislative commission on
planning and fiscal policy consists of 18 nine members of the
senate appointed by the subcommittee on committees of the
committee on rules and administration and nine members of the
house of representatives appointed by the legislative
coordinating commission speaker. Vacancies on the commission
are filled in the same manner as original appointments. The
commission shall elect a chair and a vice-chair from among its
members. The chair alternates between a member of the senate
and a member of the house in January of each odd-numbered year.
Sec. 2. Minnesota Statutes 2002, section 3.971,
subdivision 2, is amended to read:
Subd. 2. [STAFF; COMPENSATION.] The legislative auditor
shall establish a financial audits division and a program
evaluation division to fulfill the duties prescribed in this
section. Each division must may be supervised by a deputy
auditor, appointed by the legislative auditor, with the approval
of the commission, for a term coterminous with the legislative
auditor's term. The deputy auditors may be removed before the
expiration of their terms only for cause. The legislative
auditor and deputy auditors may each appoint a confidential
secretary to serve at pleasure. The salaries and benefits of
the legislative auditor, deputy auditors and confidential
secretaries shall be determined by the compensation plan
approved by the legislative coordinating commission. The deputy
auditors may perform and exercise the powers, duties and
responsibilities imposed by law on the legislative auditor when
authorized by the legislative auditor. The deputy auditors and
the confidential secretaries serve in the unclassified civil
service, but all other employees of the legislative auditor are
in the classified civil service. While in office, a person
appointed deputy for the financial audit division must hold an
active license as a certified public accountant.
Sec. 3. [3A.115]
The amount necessary to fund the retirement allowance
granted under this chapter to a former legislator upon
retirement is appropriated from the general fund to the director
to pay pension obligations due to the retiree. Retirement
allowances payable to retired legislators and their survivors
under this chapter must be adjusted in the same manner, at the
same times, and in the same amounts as are benefits payable from
the Minnesota postretirement investment fund to retirees of a
participating public pension fund.
Sec. 4. Minnesota Statutes 2002, section 6.48, is amended
to read:
6.48 [EXAMINATION OF COUNTIES; COST, FEES.]
All the powers and duties conferred and imposed upon the
state auditor shall be exercised and performed by the state
auditor in respect to the offices, institutions, public
property, and improvements of several counties of the state. At
least once in each year, if funds and personnel permit, the
state auditor shall may visit, without previous notice, each
county and make a thorough examination of all accounts and
records relating to the receipt and disbursement of the public
funds and the custody of the public funds and other
property. If the audit is performed by a private certified
public accountant, the state auditor may require additional
information from the private certified public accountant as the
state auditor deems in the public interest. The state auditor
may accept the audit or make additional examinations as the
state auditor deems to be in the public interest. The state
auditor shall prescribe and install systems of accounts and
financial reports that shall be uniform, so far as practicable,
for the same class of offices. A copy of the report of such
examination shall be filed and be subject to public inspection
in the office of the state auditor and another copy in the
office of the auditor of the county thus examined. The state
auditor may accept the records and audit, or any part thereof,
of the department of human services in lieu of examination of
the county social welfare funds, if such audit has been made
within any period covered by the state auditor's audit of the
other records of the county. If any such examination shall
disclose malfeasance, misfeasance, or nonfeasance in any office
of such county, such report shall be filed with the county
attorney of the county, and the county attorney shall institute
such civil and criminal proceedings as the law and the
protection of the public interests shall require.
The county receiving such any examination shall pay to the
state general fund, notwithstanding the provisions of section
16A.125, the total cost and expenses of such examinations,
including the salaries paid to the examiners while actually
engaged in making such examination. The state auditor on
deeming it advisable may bill counties, having a population of
200,000 or over, monthly for services rendered and the officials
responsible for approving and paying claims shall cause said
bill to be promptly paid. The general fund shall be credited
with all collections made for any such examinations.
Sec. 5. Minnesota Statutes 2002, section 6.49, is amended
to read:
6.49 [CITIES OF FIRST CLASS.]
All powers and duties conferred and imposed upon the state
auditor with respect to state and county officers, institutions,
property, and improvements are hereby extended to cities of the
first class. Copies of the written report of the state auditor
on the financial condition and accounts of such city shall be
filed in the state auditor's office, with the mayor, city
council, and city comptroller thereof, and with the city
commissioners, if such city have such officers. If such report
disclose malfeasance, misfeasance, or nonfeasance in office,
copies thereof shall be filed with the city attorney thereof and
with the county attorney of the county in which such city is
located, and these officials of the law shall institute such
proceedings, civil or criminal, as the law and the public
interest require.
The state auditor may shall bill said cities monthly for
services rendered, including any examination, and the officials
responsible for approving and paying claims shall cause said
bill to be promptly paid.
Sec. 6. Minnesota Statutes 2002, section 6.54, is amended
to read:
6.54 [EXAMINATION OF COUNTY AND MUNICIPAL RECORDS PURSUANT
TO PETITION.]
The registered voters in a county or home rule charter or
statutory city or the electors at an annual or special town
meeting of a town may petition the state auditor to examine the
books, records, accounts, and affairs of the county, home rule
charter or statutory city, town, or of any organizational unit,
activity, project, enterprise, or fund thereof; and the scope of
the examination may be limited by the petition, but the
examination shall cover, at least, all cash received and
disbursed and the transactions relating thereto, provided that
the state auditor shall not examine more than the six latest
years preceding the circulation of the petition, unless it
appears to the state auditor during the examination that the
audit period should be extended to permit a full recovery under
bonds furnished by public officers or employees, and may if it
appears to the auditor in the public interest confine the period
or the scope of audit or both period and scope of audit, to less
than that requested by the petition. In the case of a county or
home rule charter or statutory city, the petition shall be
signed by a number of registered voters at least equal to 20
percent of those voting in the last presidential election. The
eligible voters of any school district may petition the state
auditor, who shall be subject to the same restrictions regarding
the scope and period of audit, provided that the petition shall
be signed by at least ten eligible voters for each 50 resident
pupils in average daily membership during the preceding school
year as shown on the records in the office of the commissioner
of children, families, and learning. In the case of school
districts, the petition shall be signed by at least ten eligible
voters. At the time it is circulated, every petition shall
contain a statement that the cost of the audit will be borne by
the county, city, or school district as provided by law. Thirty
days before the petition is delivered to the state auditor it
shall be presented to the appropriate city or school district
clerk and the county auditor. The county auditor shall
determine and certify whether the petition is signed by the
required number of registered voters or eligible voters as the
case may be. The certificate shall be conclusive evidence
thereof in any action or proceeding for the recovery of the
costs, charges, and expenses of any examination made pursuant to
the petition.
Sec. 7. Minnesota Statutes 2002, section 6.55, is amended
to read:
6.55 [EXAMINATION OF RECORDS PURSUANT TO RESOLUTION OF
GOVERNING BODY.]
The governing body of any city, town, county or school
district, by appropriate resolution may ask the state auditor to
examine the books, records, accounts and affairs of their
government, or of any organizational unit, activity, project,
enterprise, or fund thereof; and the state auditor shall examine
the same upon receiving, pursuant to said resolution, a written
request signed by a majority of the members of the governing
body; and the governing body of any public utility commission,
or of any public corporation having a body politic and
corporate, or of any instrumentality joint or several of any
city, town, county, or school district, may request an audit of
its books, records, accounts and affairs in the same manner;
provided that the scope of the examination may be limited by the
request, but such examination shall cover, at least, all cash
received and disbursed and the transactions relating thereto.
Such written request shall be presented to the clerk, or
recording officer of such city, town, county, school district,
public utility commission, public corporation, or
instrumentality, before being presented to the state auditor,
who shall determine whether the same is signed by a majority of
the members of such governing body and, if found to be so
signed, shall certify such fact, and the fact that such
resolution was passed, which certificate shall be conclusive
evidence thereof in any action or proceedings for the recovery
of the costs, charges and expenses of any examination made
pursuant to such request. Nothing contained in any of the laws
of the state relating to the state auditor, shall be so
construed as to prevent any county, city, town, or school
district from employing a certified public accountant to examine
its books, records, accounts, and affairs. For the purposes of
this section, the governing body of a town is the town board.
Sec. 8. Minnesota Statutes 2002, section 6.64, is amended
to read:
6.64 [COOPERATION WITH PUBLIC ACCOUNTANTS; PUBLIC
ACCOUNTANT DEFINED.]
There shall be mutual cooperation between the state auditor
and public accountants in the performance of auditing,
accounting, and other related services for counties, cities,
towns, school districts, and other public corporations. For the
purposes of sections 6.64 to 6.71 the term public accountant
shall have the meaning ascribed to it in section 412.222.
Sec. 9. Minnesota Statutes 2002, section 6.65, is amended
to read:
6.65 [MINIMUM PROCEDURES FOR AUDITORS, PRESCRIBED.]
The state auditor shall prescribe minimum procedures and
the audit scope for auditing the books, records, accounts, and
affairs of counties and local governments in Minnesota. The
minimum scope for audits of all local governments must include
financial and legal compliance audits. Audits of all school
districts must include a determination of compliance with
uniform financial accounting and reporting standards. The state
auditor shall promulgate an audit guide for legal compliance
audits, in consultation with representatives of the state
auditor, the attorney general, towns, cities, counties, school
districts, and private sector public accountants.
Sec. 10. Minnesota Statutes 2002, section 6.66, is amended
to read:
6.66 [CERTAIN PRACTICES OF PUBLIC ACCOUNTANTS AUTHORIZED.]
Any public accountant may engage in the practice of
auditing the books, records, accounts, and affairs of counties,
cities, towns, school districts, and other public corporations
which are not otherwise required by law to be audited
exclusively by the state auditor.
Sec. 11. Minnesota Statutes 2002, section 6.67, is amended
to read:
6.67 [PUBLIC ACCOUNTANTS; REPORT OF EVIDENCE POINTING TO
MISCONDUCT.]
Whenever a public accountant in the course of auditing the
books and affairs of a county, city, town, school district, or
other public corporations, shall discover evidence pointing to
nonfeasance, misfeasance, or malfeasance, on the part of an
officer or employee in the conduct of duties and affairs, the
public accountant shall promptly make a report of such discovery
to the state auditor and the county attorney of the county in
which the governmental unit is situated and the public
accountant shall also furnish a copy of the report of audit upon
completion to said officers. The county attorney shall act on
such report in the same manner as required by law for reports
made to the county attorney by the state auditor.
Sec. 12. Minnesota Statutes 2002, section 6.68,
subdivision 1, is amended to read:
Subdivision 1. [REQUEST TO GOVERNING BODY.] If in an audit
of a county, city, town, school district, or other public
corporation, a public accountant has need of the assistance of
the state auditor, the accountant may obtain such assistance by
requesting the governing body of the governmental unit being
examined to request the state auditor to perform such auditing
or investigative services, or both, as the matter and the public
interest require.
Sec. 13. Minnesota Statutes 2002, section 6.70, is amended
to read:
6.70 [ACCESS TO REPORTS.]
The state auditor and the public accountants shall have
reasonable access to each other's audit reports, working papers,
and audit programs concerning audits made by each of counties,
cities, towns, school districts, and other public corporations.
Sec. 14. Minnesota Statutes 2002, section 6.71, is amended
to read:
6.71 [SCOPE OF AUDITOR'S INVESTIGATION.]
Whenever the governing body of a county, city, town, or
school district shall have requested a public accountant to make
an audit of its books and affairs, and such audit is in progress
or has been completed, and freeholders registered voters or
electors petition or the governing body requests or both the
state auditor to make an examination covering the same, or part
of the same, period, the state auditor may, in the public
interest, limit the scope of the examination to less than that
specified in section 6.54, but the scope shall cover, at least,
an investigation of those complaints which are within the state
auditor's powers and duties to investigate.
Sec. 15. Minnesota Statutes 2002, section 6.74, is amended
to read:
6.74 [INFORMATION COLLECTED FROM LOCAL GOVERNMENTS.]
The state auditor, or a designated agent, shall collect
annually from all city, county, and other local units of
government, information as to the assessment of property,
collection of taxes, receipts from licenses and other sources,
the expenditure of public funds for all purposes, borrowing,
debts, principal and interest payments on debts, and such other
information as may be needful. The data shall be supplied
upon blanks forms prescribed by the state auditor, and all
public officials so called upon shall fill out properly and
return promptly all blanks forms so transmitted. The state
auditor or assistants, may examine local records in order to
complete or verify the information.
Sec. 16. [6.78] [BEST PRACTICES REVIEWS.]
The state auditor shall conduct best practices reviews that
examine the procedures and practices used to deliver local
government services, determine the methods of local government
service delivery, identify variations in cost and effectiveness,
and identify practices to save money or provide more effective
service delivery. The state auditor shall recommend to local
governments service delivery methods and practices to improve
the cost-effectiveness of services. The state auditor shall
determine the local government services to be reviewed in
consultation with representatives of the Association of
Minnesota Counties, the League of Minnesota Cities, the
Association of Metropolitan Municipalities, the Minnesota
Association of Townships, the Minnesota Municipal Utilities
Association, and the Minnesota Association of School
Administrators.
[EFFECTIVE DATE.] This section is effective July 1, 2004.
Sec. 17. Minnesota Statutes 2002, section 8.06, is amended
to read:
8.06 [ATTORNEY FOR STATE OFFICERS, BOARDS, OR COMMISSIONS;
EMPLOY COUNSEL.]
The attorney general shall act as the attorney for all
state officers and all boards or commissions created by law in
all matters pertaining to their official duties. When requested
by the attorney general, it shall be the duty of any county
attorney of the state to appear within the county and act as
attorney for any such board, commission, or officer in any court
of such county. The attorney general may, upon request in
writing, employ, and fix the compensation of, a special attorney
for any such board, commission, or officer when, in the attorney
general's judgment, the public welfare will be promoted
thereby. Such special attorney's fees or salary shall be paid
from the appropriation made for such board, commission, or
officer. Except as herein provided, no board, commission, or
officer shall hereafter employ any attorney at the expense of
the state.
Whenever the attorney general, the governor, and the chief
justice of the supreme court shall certify, in writing, filed in
the office of the secretary of state, that it is necessary, in
the proper conduct of the legal business of the state, either
civil or criminal, that the state employ additional counsel, the
attorney general shall thereupon be authorized to employ such
counsel and, with the governor and the chief justice, fix the
additional counsel's compensation. The governor, if in the
governor's opinion the public interest requires such action, may
employ counsel to act in any action or proceeding if the
attorney general is in any way interested adversely to the
state. Except as herein stated, no additional counsel shall be
employed and the legal business of the state shall be performed
exclusively by the attorney general and the attorney general's
assistants.
Sec. 18. Minnesota Statutes 2002, section 10A.01,
subdivision 21, is amended to read:
Subd. 21. [LOBBYIST.] (a) "Lobbyist" means an individual:
(1) engaged for pay or other consideration, or authorized
to spend money by another individual, association, political
subdivision, or public higher education system, who spends more
than five hours in any month or more than $250, not including
the individual's own travel expenses and membership dues, of
more than $3,000 from all sources in any year, for the purpose
of attempting to influence legislative or administrative action,
or the official action of a metropolitan governmental unit, by
communicating or urging others to communicate with public or
local officials; or
(2) who spends more than $250, not including the
individual's own traveling expenses and membership dues, in any
year for the purpose of attempting to influence legislative or
administrative action, or the official action of a metropolitan
governmental unit, by communicating or urging others to
communicate with public or local officials.
(b) "Lobbyist" does not include:
(1) a public official;
(2) an employee of the state, including an employee of any
of the public higher education systems;
(3) an elected local official;
(4) a nonelected local official or an employee of a
political subdivision acting in an official capacity, unless the
nonelected official or employee of a political subdivision
spends more than 50 hours in any month attempting to influence
legislative or administrative action, or the official action of
a metropolitan governmental unit other than the political
subdivision employing the official or employee, by communicating
or urging others to communicate with public or local officials,
including time spent monitoring legislative or administrative
action, or the official action of a metropolitan governmental
unit, and related research, analysis, and compilation and
dissemination of information relating to legislative or
administrative policy in this state, or to the policies of
metropolitan governmental units;
(5) a party or the party's representative appearing in a
proceeding before a state board, commission, or agency of the
executive branch unless the board, commission, or agency is
taking administrative action;
(6) an individual while engaged in selling goods or
services to be paid for by public funds;
(7) a news medium or its employees or agents while engaged
in the publishing or broadcasting of news items, editorial
comments, or paid advertisements which directly or indirectly
urge official action;
(8) a paid expert witness whose testimony is requested by
the body before which the witness is appearing, but only to the
extent of preparing or delivering testimony; or
(9) a party or the party's representative appearing to
present a claim to the legislature and communicating to
legislators only by the filing of a claim form and supporting
documents and by appearing at public hearings on the claim.
(c) An individual who volunteers personal time to work
without pay or other consideration on a lobbying campaign, and
who does not spend more than the limit in paragraph (a), clause
(2), need not register as a lobbyist.
(d) An individual who provides administrative support to a
lobbyist and whose salary and administrative expenses
attributable to lobbying activities are reported as lobbying
expenses by the lobbyist, but who does not communicate or urge
others to communicate with public or local officials, need not
register as a lobbyist.
Sec. 19. Minnesota Statutes 2002, section 10A.02, is
amended by adding a subdivision to read:
Subd. 15. [DISPOSITION OF FEES.] The board must deposit
all fees collected under this chapter into the general fund in
the state treasury.
Sec. 20. Minnesota Statutes 2002, section 10A.025,
subdivision 2, is amended to read:
Subd. 2. [PENALTY FOR FALSE STATEMENTS.] A report or
statement required to be filed under this chapter must be signed
and certified as true by the individual required to file the
report. The signature may be an electronic signature consisting
of a password assigned by the board. An individual who signs
and certifies to be true a report or statement knowing it
contains false information or who knowingly omits required
information is guilty of a gross misdemeanor and subject to a
civil penalty imposed by the board of up to $3,000.
Sec. 21. Minnesota Statutes 2002, section 10A.03,
subdivision 1, is amended to read:
Subdivision 1. [FIRST REGISTRATION.] A lobbyist must file
a registration form with the board within five days after
becoming a lobbyist or being engaged by a new individual,
association, political subdivision, or public higher education
system.
Sec. 22. Minnesota Statutes 2002, section 10A.04,
subdivision 1, is amended to read:
Subdivision 1. [REPORTS REQUIRED.] A lobbyist must file
reports of the lobbyist's activities with the board as long as
the lobbyist continues to lobby. The report may be filed
electronically. A lobbyist may file a termination statement at
any time after ceasing to lobby.
[EFFECTIVE DATE.] This section is effective January 1, 2005.
Sec. 23. Minnesota Statutes 2002, section 10A.04,
subdivision 2, is amended to read:
Subd. 2. [TIME OF REPORTS.] Each report must cover the
time from the last day of the period covered by the last report
to 15 days before the current filing date. The reports must be
filed with the board by the following dates:
(1) January 15; and
(2) April 15; and
(3) July 15 June 15.
Sec. 24. Minnesota Statutes 2002, section 10A.04, is
amended by adding a subdivision to read:
Subd. 2a. [FEE.] On January 15 each year, each lobbyist
must pay a fee of $50 for each individual, association,
political subdivision, or public higher education system on
whose behalf the lobbyist is registered, except as otherwise
provided in this subdivision. The fee must be no more than
necessary to cover the cost of administering sections 10A.03 to
10A.06. The amount of the fee is subject to change each
biennium in accordance with the budget request made by the board.
This subdivision expires June 30, 2004.
Sec. 25. Minnesota Statutes 2002, section 10A.04,
subdivision 4, is amended to read:
Subd. 4. [CONTENT.] (a) A report under this section must
include information the board requires from the registration
form and the information required by this subdivision for the
reporting period.
(b) A lobbyist must report the lobbyist's total
disbursements on lobbying, separately listing lobbying to
influence legislative action, lobbying to influence
administrative action, and lobbying to influence the official
actions of a metropolitan governmental unit, and a breakdown of
disbursements for each of those kinds of lobbying into
categories specified by the board, including but not limited to
the cost of publication and distribution of each publication
used in lobbying; other printing; media, including the cost of
production; postage; travel; fees, including allowances;
entertainment; telephone and telegraph; and other expenses.
(c) A lobbyist must report the amount and nature of each
gift, item, or benefit, excluding contributions to a candidate,
equal in value to $5 or more, given or paid to any official, as
defined in section 10A.071, subdivision 1, by the lobbyist or an
employer or employee of the lobbyist. The list must include the
name and address of each official to whom the gift, item, or
benefit was given or paid and the date it was given or paid.
(d) A lobbyist must report each original source of money in
excess of $500 in any year used for the purpose of lobbying to
influence legislative action, administrative action, or the
official action of a metropolitan governmental unit. The list
must include the name, address, and employer, or, if
self-employed, the occupation and principal place of business,
of each payer of money in excess of $500.
(e) On the report due April June 15, the lobbyist must
provide a general description of the subjects lobbied in the
previous 12 months.
Sec. 26. Minnesota Statutes 2002, section 10A.04,
subdivision 5, is amended to read:
Subd. 5. [LATE FILING.] The board must send a notice by
certified mail to any lobbyist or principal who fails after
seven days after a filing date imposed by this section to file a
report or statement or to pay a fee required by this section.
If a lobbyist or principal fails to file a report or pay a fee
within ten business days after the notice was sent, the board
may impose a late filing fee of $5 per day, not to exceed $100,
commencing with the 11th day after the notice was sent. The
board must send an additional notice by certified mail to any
lobbyist or principal who fails to file a report or pay a fee
within 14 days after the first notice was sent by the board that
the lobbyist or principal may be subject to a civil penalty for
failure to file the report or pay the fee. A lobbyist or
principal who fails to file a report or statement or pay a fee
within seven days after the second notice was sent by the board
is subject to a civil penalty imposed by the board of up to
$1,000.
Sec. 27. Minnesota Statutes 2002, section 10A.04,
subdivision 6, is amended to read:
Subd. 6. [PRINCIPAL REPORTS.] (a) A principal must report
to the board as required in this subdivision by March 15 for the
preceding calendar year. Along with the report, the principal
must pay a fee of $50, except as otherwise provided in this
subdivision. The fee must be no more than necessary to cover
the cost of administering sections 10A.03 to 10A.06. The amount
of the fee is subject to change each biennium in accordance with
the budget request made by the board.
(b) The principal must report the total amount, rounded to
the nearest $20,000, spent by the principal during the preceding
calendar year to influence legislative action, administrative
action, and the official action of metropolitan governmental
units.
(c) The principal must report under this subdivision a
total amount that includes:
(1) all direct payments by the principal to lobbyists in
this state;
(2) all expenditures for advertising, mailing, research,
analysis, compilation and dissemination of information, and
public relations campaigns related to legislative action,
administrative action, or the official action of metropolitan
governmental units in this state; and
(3) all salaries and administrative expenses attributable
to activities of the principal relating to efforts to influence
legislative action, administrative action, or the official
action of metropolitan governmental units in this state.
Sec. 28. Minnesota Statutes 2002, section 10A.34,
subdivision 1a, is amended to read:
Subd. 1a. [RECOVERING LATE FEES AND PENALTIES.] The board
may bring an action in the district court in Ramsey county to
recover a fee, late filing fee, or penalty imposed under this
chapter. Money recovered must be deposited in the general fund
of the state.
Sec. 29. Minnesota Statutes 2002, section 14.091, is
amended to read:
14.091 [PETITION; UNIT OF LOCAL GOVERNMENT.]
(a) The elected governing body of a statutory or home rule
city, a county, or a sanitary district may petition for
amendment or repeal of a rule or a specified portion of a rule.
The petition must be adopted by resolution of the elected
governing body and must be submitted in writing to the agency
and to the office of administrative hearings, must specify what
amendment or repeal is requested, and must demonstrate that one
of the following has become available since the adoption of the
rule in question:
(1) significant new evidence relating to the need for or
reasonableness of the rule; or
(2) less costly or intrusive methods of achieving the
purpose of the rule.
(b) Within 30 days of receiving a petition, an agency shall
reply to the petitioner in writing stating either that the
agency, within 90 days of the date of the reply, will give
notice under section 14.389 of intent to adopt the amendment or
repeal requested by the petitioner or that the agency does not
intend to amend or repeal the rule and has requested the office
of administrative hearings to review the petition. If the
agency intends to amend or repeal the rule in the manner
requested by the petitioner, the agency must use the process
under section 14.389 to amend or repeal the rule. Section
14.389, subdivision 5, applies.
(c) Upon receipt of an agency request under paragraph (b),
the chief administrative law judge shall assign an
administrative law judge, who was not involved when the rule or
portion of a rule that is the subject of the petition was
adopted or amended, to review the petition to determine whether
the petitioner has complied with the requirements of paragraph
(a). The petitioner, the agency, or any interested person, at
the option of any of them, may submit written material for the
assigned administrative law judge's consideration within ten
days of the chief administrative law judge's receipt of the
agency request. The administrative law judge shall dismiss the
petition if the judge determines that:
(1) the petitioner has not complied with the requirements
of paragraph (a);
(2) the rule is required to comply with a court order; or
(3) the rule is required by federal law or is required to
maintain authority to administer a federal program.
(d) If the administrative law judge assigned by the chief
administrative law judge determines that the petitioner has
complied with the requirements of paragraph (a), the
administrative law judge shall conduct a hearing and issue a
decision on the petition within 120 days of its receipt by the
office of administrative hearings. The agency shall give notice
of the hearing in the same manner required for notice of a
proposed rule hearing under section 14.14, subdivision 1a. At
the public hearing, the agency shall make an affirmative
presentation of facts establishing the need for and
reasonableness of the rule or portion of the rule in question.
If the administrative law judge determines that the agency has
not established the continued need for and reasonableness of the
rule or portion of the rule, the rule or portion of the rule
does not have the force of law, effective 90 days after the
administrative law judge's decision, unless the agency has
before then published notice in the State Register of intent to
amend or repeal the rule in accordance with paragraph (e).
(e) The agency may amend or repeal the rule in the manner
requested by the petitioner, or in another manner that the
administrative law judge has determined is needed and reasonable.
Amendments under this paragraph may be adopted under the
expedited process in section 14.389. Section 14.389,
subdivision 5, applies to this adoption. If the agency uses the
expedited process and no public hearing is required, the agency
must complete the amendment or repeal of the rule within 90 days
of the administrative law judge's decision under paragraph (d).
If a public hearing is required, the agency must complete the
amendment or repeal of the rule within 180 days of the
administrative law judge's decision under paragraph (d). A rule
or portion of a rule that is not amended or repealed in the time
prescribed by this paragraph does not have the force of law upon
expiration of the deadline. A rule that is amended within the
time prescribed in this paragraph has the force of law, as
amended.
(f) The chief administrative law judge shall report the
decision under paragraph (d) within 30 days to the chairs of the
house and senate committees having jurisdiction over
governmental operations and the chairs of the house and senate
committees having jurisdiction over the agency whose rule or
portion of a rule was the subject of the petition.
(g) The chief administrative law judge shall assess a
petitioner half the cost of processing a petition and conducting
a public hearing under paragraph (d).
(h) This section expires July 31, 2006.
Sec. 30. Minnesota Statutes 2002, section 14.48, is
amended by adding a subdivision to read:
Subd. 4. [MANDATORY RETIREMENT.] An administrative law
judge and compensation judge must retire upon attaining age 70.
The chief administrative law judge may appoint a retired
administrative law judge or compensation judge to hear any
proceeding that is properly assignable to an administrative law
judge or compensation judge. When a retired administrative law
judge or compensation judge undertakes this service, the retired
judge shall receive pay and expenses in the amount payable to
temporary administrative law judges or compensation judges
serving under section 14.49.
[EFFECTIVE DATE.] This section is effective June 30, 2003.
An administrative law judge or compensation judge who has
attained the age of 70 on or before that date must retire by
June 30, 2003.
Sec. 31. Minnesota Statutes 2002, section 16A.102,
subdivision 1, is amended to read:
Subdivision 1. [GOVERNOR'S RECOMMENDATION.] By the fourth
Tuesday in January of each odd-numbered year date specified in
section 16A.11, subdivision 1, for submission of parts one and
two of the governor's budget, the governor shall submit to the
legislature a recommended revenue target for the next two
bienniums. The recommended revenue target must specify:
(1) the maximum share of Minnesota personal income to be
collected in taxes and other revenues to pay for state and local
government services;
(2) the division of the share between state and local
government revenues; and
(3) the mix and rates of income, sales, and other state and
local taxes including property taxes and other revenues.
The recommendations must be based on the November forecast
prepared under section 16A.103.
Sec. 32. Minnesota Statutes 2002, section 16A.11,
subdivision 3, is amended to read:
Subd. 3. [PART TWO: DETAILED BUDGET.] (a) Part two of the
budget, the detailed budget estimates both of expenditures and
revenues, must contain any statements on the financial plan
which the governor believes desirable or which may be required
by the legislature. The detailed estimates shall include the
governor's budget arranged in tabular form.
(b) Tables listing expenditures for the next biennium must
show the appropriation base for each year as well as the
governor's total recommendation for that year for each
expenditure line. The appropriation base is the amount
appropriated for the second year of the current biennium,
adjusted in accordance with any provisions of law that specify
changes to the base.
(c) The detailed estimates must include a separate line
listing the total number of professional or technical service
contracts and the total cost of those professional and technical
service contracts for the prior biennium and the
projected number of professional or technical service contracts
and the projected costs of those contracts for the current and
upcoming biennium. They must also include a summary of the
personnel employed by the agency, reflected as full-time
equivalent positions, and the number of professional or
technical service consultants for the current biennium.
(c) (d) The detailed estimates for internal service funds
must include the number of full-time equivalents by program;
detail on any loans from the general fund, including dollar
amounts by program; proposed investments in technology or
equipment of $100,000 or more; an explanation of any operating
losses or increases in retained earnings; and a history of the
rates that have been charged, with an explanation of any rate
changes and the impact of the rate changes on affected agencies.
Sec. 33. Minnesota Statutes 2002, section 16A.1285,
subdivision 3, is amended to read:
Subd. 3. [DUTIES OF COMMISSIONER OF FINANCE.] The
commissioner of finance shall classify, monitor, analyze, and
report all departmental earnings that fall within the definition
established in subdivision 1. Specifically, the commissioner
shall:
(1) establish and maintain a classification system that
clearly defines and distinguishes categories and types of
departmental earnings and takes into account the purpose of the
various earnings types and the extent to which various earnings
types serve a public or private interest;
(2) prepare a biennial report that documents collection
costs, purposes, and yields of all departmental earnings, the
report to be submitted to the legislature on or before the
fourth Tuesday in January in each odd-numbered year and to
include estimated data for the year in which the report is
prepared, actual data for the two years immediately before, and
estimates for the two years immediately following; and
(3) prepare and maintain a detailed directory of all
departmental earnings.
In a year following the election of a governor who had not been
governor the previous year, the report required by clause (2)
must be submitted by the third Tuesday in February.
Sec. 34. Minnesota Statutes 2002, section 16A.151,
subdivision 5, is amended to read:
Subd. 5. [EXPIRATION.] This section expires June 30,
2004 2006.
Sec. 35. Minnesota Statutes 2002, section 16A.17, is
amended by adding a subdivision to read:
Subd. 10. [DIRECT DEPOSIT.] Notwithstanding section
177.23, the commissioner may require direct deposit for all
state employees that are being paid by the state payroll system.
Sec. 36. Minnesota Statutes 2002, section 16A.40, is
amended to read:
16A.40 [WARRANTS AND ELECTRONIC FUND TRANSFERS.]
Money must not be paid out of the state treasury except
upon the warrant of the commissioner or an electronic fund
transfer approved by the commissioner. Warrants must be drawn
on printed blanks that are in numerical order. The commissioner
shall enter, in numerical order in a warrant register, the
number, amount, date, and payee for every warrant issued.
The commissioner may require payees receiving more than ten
payments or $10,000 per year must to supply the commissioner
with their bank routing information to enable the payments to be
made through an electronic fund transfer.
Sec. 37. Minnesota Statutes 2002, section 16A.501, is
amended to read:
16A.501 [REPORT ON EXPENDITURE OF BOND PROCEEDS.]
The commissioner of finance must report annually to the
legislature on the degree to which entities receiving
appropriations for capital projects in previous omnibus capital
improvement acts have encumbered or expended that money. The
report must be submitted to the chairs of the house of
representatives ways and means committee and the senate finance
committee by February January 1 of each year.
Sec. 38. Minnesota Statutes 2002, section 16A.642,
subdivision 1, is amended to read:
Subdivision 1. [REPORTS.] (a) The commissioner of finance
shall report to the chairs of the senate committee on finance
and the house of representatives committees on ways and means
and on capital investment by February January 1 of each
odd-numbered year on the following:
(1) all laws authorizing the issuance of state bonds or
appropriating general fund money for state or local government
capital investment projects enacted more than four years before
February January 1 of that odd-numbered year; the projects
authorized to be acquired and constructed for which less than
100 percent of the authorized total cost has been expended,
encumbered, or otherwise obligated; the cost of contracts to be
let in accordance with existing plans and specifications shall
be considered expended for this report; and the amount of
general fund money appropriated but not spent or otherwise
obligated, and the amount of bonds not issued and bond proceeds
held but not previously expended, encumbered, or otherwise
obligated for these projects; and
(2) all laws authorizing the issuance of state bonds or
appropriating general fund money for state or local government
capital programs or projects other than those described in
clause (1), enacted more than four years before February January
1 of that odd-numbered year; and the amount of general fund
money appropriated but not spent or otherwise obligated, and the
amount of bonds not issued and bond proceeds held but not
previously expended, encumbered, or otherwise obligated for
these programs and projects.
(b) The commissioner shall also report on general fund
appropriations for capital projects, bond authorizations or bond
proceed balances that may be canceled because projects have been
canceled, completed, or otherwise concluded, or because the
purposes for which the money was appropriated or bonds were
authorized or issued have been canceled, completed, or otherwise
concluded. The general fund appropriations, bond authorizations
or bond proceed balances that are unencumbered or otherwise not
obligated that are reported by the commissioner under this
subdivision are canceled, effective July 1 of the year of the
report, unless specifically reauthorized by act of the
legislature.
Sec. 39. Minnesota Statutes 2002, section 16B.24,
subdivision 5, is amended to read:
Subd. 5. [RENTING OUT STATE PROPERTY.] (a) [AUTHORITY.]
The commissioner may rent out state property, real or personal,
that is not needed for public use, if the rental is not
otherwise provided for or prohibited by law. The property may
not be rented out for more than five years at a time without the
approval of the state executive council and may never be rented
out for more than 25 years. A rental agreement may provide that
the state will reimburse a tenant for a portion of capital
improvements that the tenant makes to state real property if the
state does not permit the tenant to renew the lease at the end
of the rental agreement.
(b) [RESTRICTIONS.] Paragraph (a) does not apply to state
trust fund lands, other state lands under the jurisdiction of
the department of natural resources, lands forfeited for
delinquent taxes, lands acquired under section 298.22, or lands
acquired under section 41.56 which are under the jurisdiction of
the department of agriculture.
(c) [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling
Chapel, located within the boundaries of Fort Snelling State
Park, is available for use only on payment of a rental fee. The
commissioner shall establish rental fees for both public and
private use. The rental fee for private use by an organization
or individual must reflect the reasonable value of equivalent
rental space. Rental fees collected under this section must be
deposited in the general fund.
(d) [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner
shall establish rental rates for all living accommodations
provided by the state for its employees. Money collected as
rent by state agencies pursuant to this paragraph must be
deposited in the state treasury and credited to the general fund.
(e) [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE
AGENCIES.] The commissioner may lease portions of the
state-owned buildings in the capitol complex, the capitol square
building, the health building, the Duluth government center, and
the building at 1246 University Avenue, St. Paul, Minnesota, to
state agencies and the court administrator on behalf of the
judicial branch of state government and charge rent on the basis
of space occupied. Notwithstanding any law to the contrary, all
money collected as rent pursuant to the terms of this section
shall be deposited in the state treasury. Money collected as
rent to recover the bond interest costs of a building funded
from the state bond proceeds fund shall be credited to the
general fund. Money collected as rent to recover the
depreciation costs of a building funded from the state bond
proceeds fund and money collected as rent to recover capital
expenditures from capital asset preservation and replacement
appropriations and statewide building access appropriations
shall be credited to a segregated account in a special revenue
fund. Fifty percent of the money credited to the account each
fiscal year must be transferred to the general fund. The
remaining money in the account is appropriated to the
commissioner to be expended for asset preservation projects as
determined by the commissioner. Money collected as rent to
recover the depreciation and interest costs of a building built
with other state dedicated funds shall be credited to the
dedicated fund which funded the original acquisition or
construction. All other money received shall be credited to the
general services revolving fund.
Sec. 40. Minnesota Statutes 2002, section 16B.35,
subdivision 1, is amended to read:
Subdivision 1. [PERCENT OF APPROPRIATIONS FOR ART.] An
appropriation for the construction or alteration of any state
building may contain an amount not to exceed the lesser of
$100,000 or one percent of the total appropriation for the
building for the acquisition of works of art, excluding
landscaping, which may be an integral part of the building or
its grounds, attached to the building or grounds or capable of
being displayed in other state buildings. If the appropriation
for works of art is limited by the $100,000 cap in this section,
the appropriation for the construction or alteration of the
building must be reduced to reflect the reduced amount that will
be spent on works of art. Money used for this purpose is
available only for the acquisition of works of art to be
exhibited in areas of a building or its grounds accessible, on a
regular basis, to members of the public. No more than ten
percent of the total amount available each fiscal year under
this subdivision may be used for administrative expenses, either
by the commissioner of administration or by any other entity to
whom the commissioner delegates administrative authority. For
the purposes of this section "state building" means a building
the construction or alteration of which is paid for wholly or in
part by the state.
Sec. 41. Minnesota Statutes 2002, section 16B.465,
subdivision 1a, is amended to read:
Subd. 1a. [CREATION.] Except as provided in subdivision 4,
the commissioner, through the state information infrastructure,
shall arrange for the provision of voice, data, video, and other
telecommunications transmission services to state agencies. The
state information infrastructure may also serve educational
institutions, including public schools as defined in section
120A.05, subdivisions 9, 11, 13, and 17, nonpublic, church or
religious organization schools that provide instruction in
compliance with sections 120A.22, 120A.24, and 120A.41, and
private colleges; public corporations; Indian tribal
governments; and state political subdivisions; and public
noncommercial educational television broadcast stations as
defined in section 129D.12, subdivision 2. It is not a
telephone company for purposes of chapter 237. The commissioner
may purchase, own, or lease any telecommunications network
facilities or equipment after first seeking bids or proposals
and having determined that the private sector cannot, will not,
or is unable to provide these services, facilities, or equipment
as bid or proposed in a reasonable or timely fashion consistent
with policy set forth in this section. The commissioner shall
not resell or sublease any services or facilities to nonpublic
entities except to serve private schools and colleges. The
commissioner has the responsibility for planning, development,
and operations of the state information infrastructure in order
to provide cost-effective telecommunications transmission
services to state information infrastructure users consistent
with the policy set forth in this section.
Sec. 42. Minnesota Statutes 2002, section 16B.465,
subdivision 7, is amended to read:
Subd. 7. [EXEMPTION.] The system is exempt from the
five-year limitation on contracts set by sections 16C.05,
subdivision 2, paragraph (a), clause (5) (b), 16C.08,
subdivision 3, clause (7) (5), and 16C.09, clause (6).
Sec. 43. Minnesota Statutes 2002, section 16B.47, is
amended to read:
16B.47 [MICROGRAPHICS.]
The commissioner shall may provide micrographics services
and products to meet agency needs. Within available resources,
the commissioner may also provide micrographic services to
political subdivisions. Agency plans and programs for
micrographics must be submitted to and receive the approval of
the commissioner prior to implementation. Upon the
commissioner's approval, subsidiary or independent microfilm
operations may be implemented in other state agencies. The
commissioner may direct that copies of official state documents
be distributed to official state depositories on microfilm.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 44. Minnesota Statutes 2002, section 16B.48,
subdivision 2, is amended to read:
Subd. 2. [PURPOSE OF FUNDS.] Money in the state treasury
credited to the general services revolving fund and money that
is deposited in the fund is appropriated annually to the
commissioner for the following purposes:
(1) to operate a central store and equipment service;
(2) to operate a central duplication and printing service;
(3) to operate the central mailing service, including
purchasing postage and related items and refunding postage
deposits;
(4) (3) to operate a documents service as prescribed by
section 16B.51;
(5) (4) to provide services for the maintenance, operation,
and upkeep of buildings and grounds managed by the commissioner
of administration;
(6) (5) to operate a materials handling service, including
interagency mail and product delivery, solid waste removal,
courier service, equipment rental, and vehicle and equipment
maintenance;
(7) (6) to provide analytical, statistical, and
organizational development services to state agencies, local
units of government, metropolitan and regional agencies, and
school districts;
(8) (7) to operate a records center and provide
micrographics products and services; and
(9) (8) to perform services for any other agency. Money
may be expended for this purpose only when directed by the
governor. The agency receiving the services shall reimburse the
fund for their cost, and the commissioner shall make the
appropriate transfers when requested. The term "services" as
used in this clause means compensation paid officers and
employees of the state government; supplies, materials,
equipment, and other articles and things used by or furnished to
an agency; and utility services and other services for the
maintenance, operation, and upkeep of buildings and offices of
the state government.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 45. Minnesota Statutes 2002, section 16C.02,
subdivision 6, is amended to read:
Subd. 6. [CONTRACT.] "Contract" means any written
instrument or electronic document containing the elements of
offer, acceptance, and consideration to which an agency is a
party, including an amendment to or extension of a contract.
Sec. 46. Minnesota Statutes 2002, section 16C.03, is
amended by adding a subdivision to read:
Subd. 17. [CONTRACT EXTENSION.] The term of a contract may
be extended for a time longer than the time specified in this
chapter, up to a total term of ten years, if the commissioner,
in consultation with the commissioner of finance, determines
that the contractor will incur upfront costs under the contract
that cannot be recovered within a two-year period and that will
provide cost savings to the state and that these costs will be
amortized over the life of the contract.
Sec. 47. [16C.045] [REPORTING OF VIOLATIONS.]
A state employee who discovers evidence of violation of
laws or rules governing state contracts is encouraged to report
the violation or suspected violation to the employee's
supervisor, the commissioner or the commissioner's designee, or
the legislative auditor. The legislative auditor must report to
the legislative audit commission if there are multiple
complaints about the same agency. The auditor's report to the
legislative audit commission under this section must disclose
only the number and type of violations alleged. An employee
making a good faith report under this section is covered by
section 181.932, prohibiting the employer from discriminating
against the employee.
Sec. 48. Minnesota Statutes 2002, section 16C.05,
subdivision 2, is amended to read:
Subd. 2. [CREATION AND VALIDITY OF CONTRACTS.] (a) A
contract is not valid and the state is not bound by it and no
agency, without the prior written approval of the commissioner
granted pursuant to subdivision 2a, may authorize work to begin
on it unless:
(1) it has first been executed by the head of the agency or
a delegate who is a party to the contract;
(2) it has been approved by the commissioner; and
(3) it has been approved by the attorney general or a
delegate as to form and execution;
(4) the accounting system shows an obligation in an expense
budget or encumbrance for the amount of the contract liability;
and.
(5) (b) The combined contract and amendments shall must not
exceed five years without specific, written approval by the
commissioner according to established policy, procedures, and
standards, or unless otherwise provided for by law. The term of
the original contract must not exceed two years unless the
commissioner determines that a longer duration is in the best
interest of the state.
(b) (c) Grants, interagency agreements, purchase orders,
work orders, and annual plans need not, in the discretion of the
commissioner and attorney general, require the signature of the
commissioner and/or the attorney general. A signature is not
required for work orders and amendments to work orders related
to department of transportation contracts. Bond purchase
agreements by the Minnesota public facilities authority do not
require the approval of the commissioner.
(c) (d) Amendments to contracts must entail tasks that are
substantially similar to those in the original contract or
involve tasks that are so closely related to the original
contract that it would be impracticable for a different
contractor to perform the work. The commissioner or an agency
official to whom the commissioner has delegated contracting
authority under section 16C.03, subdivision 16, must determine
that an amendment would serve the interest of the state better
than a new contract and would cost no more.
(e) A fully executed copy of every contract, amendments to
the contract, and performance evaluations relating to the
contract must be kept on file at the contracting agency for a
time equal to that specified for contract vendors and other
parties in subdivision 5.
(f) The attorney general must periodically review and
evaluate a sample of state agency contracts to ensure compliance
with laws.
Sec. 49. Minnesota Statutes 2002, section 16C.05, is
amended by adding a subdivision to read:
Subd. 2a. [EMERGENCY AUTHORIZATION.] The commissioner may
grant an agency approval to authorize work to begin on a
contract prior to the full execution of the contract in the
event of an emergency as defined in section 16C.10, subdivision
2.
Sec. 50. Minnesota Statutes 2002, section 16C.06,
subdivision 1, is amended to read:
Subdivision 1. [PUBLICATION REQUIREMENTS.] Notices of
solicitations for acquisitions estimated to be more than
$25,000, or $100,000 in the case of a department of
transportation acquisition, must be publicized in a manner
designated by the commissioner. To the extent practical, this
must include posting on a state Web site.
Sec. 51. Minnesota Statutes 2002, section 16C.08,
subdivision 2, is amended to read:
Subd. 2. [DUTIES OF CONTRACTING AGENCY.] (a) Before an
agency may seek approval of a professional or technical services
contract valued in excess of $5,000, it must certify to the
commissioner that provide the following:
(1) a description of how the proposed contract or amendment
is necessary and reasonable to advance the statutory mission of
the agency;
(2) a description of the agency's plan to notify firms or
individuals who may be available to perform the services called
for in the solicitation; and
(3) a description of the performance measures or other
tools that will be used to monitor and evaluate contract
performance.
(b) In addition to paragraph (a), the agency must certify
that:
(1) no current state employee is able and available to
perform the services called for by the contract;
(2) the normal competitive bidding mechanisms will not
provide for adequate performance of the services;
(3) the contractor has certified that the product of the
services will be original in character;
(4) reasonable efforts were will be made to publicize the
availability of the contract to the public;
(5) the agency has received, reviewed, and accepted a
detailed work plan from the contractor for performance under the
contract, if applicable;
(6) (4) the agency has developed, will develop and fully
intends to implement, a written plan providing for the
assignment of specific agency personnel to manage the contract,
including a monitoring and liaison function, the periodic review
of interim reports or other indications of past performance, and
the ultimate utilization of the final product of the
services; and
(7) (5) the agency will not allow the contractor to begin
work before the contract is fully executed unless an exception
under section 16C.05, subdivision 2a, has been granted by the
commissioner and funds are fully encumbered.;
(6) the contract will not establish an employment
relationship between the state or the agency and any persons
performing under the contract; and
(7) in the event the results of the contract work will be
carried out or continued by state employees upon completion of
the contract, the contractor is required to include state
employees in development and training, to the extent necessary
to ensure that after completion of the contract, state employees
can perform any ongoing work related to the same function.
(c) A contract establishes an employment relationship for
purposes of paragraph (b), clause (6), if, under federal laws
governing the distinction between an employee and an independent
contract, a person would be considered an employee.
Sec. 52. Minnesota Statutes 2002, section 16C.08,
subdivision 3, is amended to read:
Subd. 3. [PROCEDURE FOR PROFESSIONAL OR TECHNICAL SERVICES
CONTRACTS.] Before approving a proposed contract for
professional or technical services, the commissioner must
determine, at least, that:
(1) all provisions of subdivision 2 and section 16C.16 have
been verified or complied with;
(2) the agency has demonstrated that the work to be
performed under the contract is necessary to the agency's
achievement of its statutory responsibilities and there is
statutory authority to enter into the contract;
(3) the contract will not establish an employment
relationship between the state or the agency and any persons
performing under the contract;
(4) the contractor and agents are not employees of the
state;
(5) no agency has previously performed or contracted for
the performance of tasks which would be substantially duplicated
under the proposed contract;
(6) (4) the contracting agency has specified a satisfactory
method of evaluating and using the results of the work to be
performed; and
(7) (5) the combined contract and amendments will not
exceed five years, unless otherwise provided for by law. The
term of the original contract must not exceed two years unless
the commissioner determines that a longer duration is in the
best interest of the state.
Sec. 53. Minnesota Statutes 2002, section 16C.08,
subdivision 4, is amended to read:
Subd. 4. [REPORTS.] (a) The commissioner shall submit to
the governor, the chairs of the house ways and means and senate
finance committees, and the legislative reference library a
yearly listing of all contracts for professional or technical
services executed. The report must identify the contractor,
contract amount, duration, and services to be provided. The
commissioner shall also issue yearly reports summarizing the
contract review activities of the department by fiscal year.
(b) The fiscal year report must be submitted by September 1
of each year and must:
(1) be sorted by agency and by contractor;
(2) show the aggregate value of contracts issued by each
agency and issued to each contractor;
(3) distinguish between contracts that are being issued for
the first time and contracts that are being extended;
(4) state the termination date of each contract; and
(5) identify services by commodity code, including topics
such as contracts for training, contracts for research and
opinions, and contracts for computer systems.
(c) Within 30 days of final completion of a contract over
$40,000 $50,000 covered by this subdivision, the head of the
agency entering into the contract must submit a one-page report
to the commissioner who must submit a copy to the legislative
reference library. The report must:
(1) summarize the purpose of the contract, including why it
was necessary to enter into a contract;
(2) state the amount spent on the contract; and
(3) explain why this amount was a cost-effective way to
enable the agency to provide its services or products better or
more efficiently be accompanied by the performance evaluation
prepared according to subdivision 4a.
Sec. 54. Minnesota Statutes 2002, section 16C.08, is
amended by adding a subdivision to read:
Subd. 4a. [PERFORMANCE EVALUATION.] Upon completion of a
professional or technical services contract, an agency entering
into the contract must complete a written performance evaluation
of the work done under the contract. The evaluation must
include an appraisal of the contractor's timeliness, quality,
cost, and overall performance in meeting the terms and
objectives of the contract. Contractors may request copies of
evaluations prepared under this subdivision and may respond in
writing. Contractor responses must be maintained with the
contract file.
Sec. 55. [16C.085] [WAIVER.]
Notwithstanding sections 16C.08, 16C.09, 43A.047, or other
law to the contrary, the commissioner of administration may
enter into or approve a service contract for printing services
or services provided by the DocuComm division without
determining that no current state employee is able and available
to perform the services called for by the contract.
Sec. 56. Minnesota Statutes 2002, section 16C.10,
subdivision 7, is amended to read:
Subd. 7. [REVERSE AUCTION.] (a) For the purpose of this
subdivision, "reverse auction" means a purchasing process in
which vendors compete to provide goods or engineering design or
computer services at the lowest selling price in an open and
interactive environment.
(b) The provisions of section 16C.06, subdivisions 2 and 3,
do not apply when the commissioner determines that a reverse
auction is the appropriate purchasing process.
Sec. 57. Minnesota Statutes 2002, section 16D.08,
subdivision 2, is amended to read:
Subd. 2. [POWERS.] (a) In addition to the collection
remedies available to private collection agencies in this state,
the commissioner, with legal assistance from the attorney
general, may utilize any statutory authority granted to a
referring agency for purposes of collecting debt owed to that
referring agency. The commissioner may also delegate to the
enterprise use the tax collection remedies in sections 270.06,
clauses (7) and (17), excluding the power to subpoena witnesses;
270.66;, 270.67, subdivisions 2 and 4, 270.69, excluding
subdivisions 7 and 13; 270.70, excluding subdivision 14;
270.7001 to 270.72;, and 290.92, subdivision 23, except that a
continuous wage levy under section 290.92, subdivision 23, is
only effective for 70 days, unless no competing wage
garnishments, executions, or levies are served within the 70-day
period, in which case a wage levy is continuous until a
competing garnishment, execution, or levy is served in the
second or a succeeding 70-day period, in which case a continuous
wage levy is effective for the remainder of that period. A
debtor may take advantage of any administrative or appeal rights
contained in the listed sections. For administrative and appeal
rights for nontax debts, references to administrative appeals or
to the taxpayer rights advocate shall be construed to be
references to the case reviewer, references to tax court shall
be construed to mean district court, and offers in compromise
shall be submitted to the referring agency. A debtor who
qualifies for cancellation of collection costs under section
16D.11, subdivision 3, clause (1), can apply to the commissioner
for reduction or release of a continuous wage levy, if the
debtor establishes that the debtor needs all or a portion of the
wages being levied upon to pay for essential living expenses,
such as food, clothing, shelter, medical care, or expenses
necessary for maintaining employment. The commissioner's
determination not to reduce or release a continuous wage levy is
appealable to district court. The word "tax" or "taxes" when
used in the tax collection statutes listed in this subdivision
also means debts referred under this chapter.
(b) For debts other than state taxes, child support, or
student loans, before any of the tax collection remedies listed
in this subdivision can be used, except for the remedies in
section 270.06, clauses (7) and (17), if the referring agency
has not already obtained a judgment or filed a lien, the
commissioner must first obtain a judgment against the debtor.
For student loans when the referring agency has not obtained a
judgment or filed a lien, Before using the tax collection
remedies listed in this subdivision, except for the remedies in
section 270.06, clauses (7) and (17), the commissioner shall
give the debtor 30 days' notice in writing, which may be served
in any manner permitted in section 270.68 for service of a
summons and complaint. The notice must advise the debtor of the
debtor's right to request that the commissioner commence a court
action, and that if no such request is made within 30 days after
service of the notice, the commissioner may use these tax
collection remedies. If a timely request is made, the
commissioner shall obtain a judgment before using these tax
collection remedies. notice and demand for payment of the amount
due must be given to the person liable for the payment or
collection of the debt at least 30 days prior to the use of the
remedies. The notice must be sent to the person's last known
address and must include a brief statement that sets forth in
simple and nontechnical terms the amount and source of the debt,
the nature of the available collection remedies, and remedies
available to the debtor.
[EFFECTIVE DATE.] This section is effective the day
following final enactment for all debts referred, whether
referred prior to, on, or after the day following final
enactment.
Sec. 58. Minnesota Statutes 2002, section 16E.01,
subdivision 3, is amended to read:
Subd. 3. [DUTIES.] (a) The office shall:
(1) coordinate the efficient and effective use of available
federal, state, local, and private resources to develop
statewide information and communications technology and its
infrastructure;
(2) review state agency and intergovernmental information
and communications systems development efforts involving state
or intergovernmental funding, including federal funding, provide
information to the legislature regarding projects reviewed, and
recommend projects for inclusion in the governor's budget under
section 16A.11;
(3) encourage cooperation and collaboration among state and
local governments in developing intergovernmental communication
and information systems, and define the structure and
responsibilities of the information policy council;
(4) cooperate and collaborate with the legislative and
judicial branches in the development of information and
communications systems in those branches;
(5) continue the development of North Star, the state's
official comprehensive online service and information
initiative;
(6) promote and collaborate with the state's agencies in
the state's transition to an effectively competitive
telecommunications market;
(7) collaborate with entities carrying out education and
lifelong learning initiatives to assist Minnesotans in
developing technical literacy and obtaining access to ongoing
learning resources;
(8) promote and coordinate public information access and
network initiatives, consistent with chapter 13, to connect
Minnesota's citizens and communities to each other, to their
governments, and to the world;
(9) promote and coordinate electronic commerce initiatives
to ensure that Minnesota businesses and citizens can
successfully compete in the global economy;
(10) promote and coordinate the regular and periodic
reinvestment in the core information and communications
technology infrastructure so that state and local government
agencies can effectively and efficiently serve their customers;
(11) facilitate the cooperative development of standards
for information systems, electronic data practices and privacy,
and electronic commerce among international, national, state,
and local public and private organizations; and
(12) work with others to avoid unnecessary duplication of
existing services provided by other public and private
organizations while building on the existing governmental,
educational, business, health care, and economic development
infrastructures.
(b) The commissioner of administration in consultation with
the commissioner of finance may determine that it is
cost-effective for agencies to develop and use shared
information and communications technology systems for the
delivery of electronic government services. This determination
may be made if an agency proposes a new system that duplicates
an existing system, a system in development, or a system being
proposed by another agency. The commissioner of administration
shall establish reimbursement rates in cooperation with the
commissioner of finance to be billed to agencies and other
governmental entities sufficient to cover the actual
development, operating, maintenance, and administrative costs of
the shared systems. The methodology for billing may include the
use of interagency agreements, or other means as allowed by law.
Sec. 59. Minnesota Statutes 2002, section 16E.07,
subdivision 9, is amended to read:
Subd. 9. [AGGREGATION OF SERVICE DEMAND.] The office shall
identify opportunities to aggregate demand for technical
services required by government units for online activities and
may contract with governmental or nongovernmental entities to
provide services. These contracts are not subject to the
requirements of chapters 16B and 16C, except sections 16C.04,
16C.07, 16C.08, and 16C.09.
Sec. 60. Minnesota Statutes 2002, section 43A.17,
subdivision 9, is amended to read:
Subd. 9. [POLITICAL SUBDIVISION COMPENSATION LIMIT.] (a)
The salary and the value of all other forms of compensation of a
person employed by a statutory or home rule charter city,
county, town, metropolitan or regional agency, or other
political subdivision of this state, excluding a school
district, or employed under section 422A.03, may not exceed 95
percent of the salary of the governor as set under section
15A.082, except as provided in this subdivision. For purposes
of this subdivision, "political subdivision of this state"
includes a statutory or home rule charter city, county, town,
metropolitan or regional agency, or other political subdivision,
but does not include a hospital, clinic, or health maintenance
organization owned by such a governmental unit.
(b) Deferred compensation and payroll allocations to
purchase an individual annuity contract for an employee are
included in determining the employee's salary. Other forms of
compensation which shall be included to determine an employee's
total compensation are all other direct and indirect items of
compensation which are not specifically excluded by this
subdivision. Other forms of compensation which shall not be
included in a determination of an employee's total compensation
for the purposes of this subdivision are:
(1) employee benefits that are also provided for the
majority of all other full-time employees of the political
subdivision, vacation and sick leave allowances, health and
dental insurance, disability insurance, term life insurance, and
pension benefits or like benefits the cost of which is borne by
the employee or which is not subject to tax as income under the
Internal Revenue Code of 1986;
(2) dues paid to organizations that are of a civic,
professional, educational, or governmental nature; and
(3) reimbursement for actual expenses incurred by the
employee which the governing body determines to be directly
related to the performance of job responsibilities, including
any relocation expenses paid during the initial year of
employment.
The value of other forms of compensation shall be the
annual cost to the political subdivision for the provision of
the compensation.
(c) The salary of a medical doctor or doctor of osteopathy
occupying a position that the governing body of the political
subdivision has determined requires an M.D. or D.O. degree is
excluded from the limitation in this subdivision.
(d) The commissioner may increase the limitation in this
subdivision for a position that the commissioner has determined
requires special expertise necessitating a higher salary to
attract or retain a qualified person. The commissioner shall
review each proposed increase giving due consideration to salary
rates paid to other persons with similar responsibilities in the
state and nation. The commissioner may not increase the
limitation until the commissioner has presented the proposed
increase to the legislative coordinating commission and received
the commission's recommendation on it. The recommendation is
advisory only. If the commission does not give its
recommendation on a proposed increase within 30 days from its
receipt of the proposal, the commission is deemed to have
recommended approval made no recommendation.
Sec. 61. [43A.311] [DRUG PURCHASING PROGRAM.]
The commissioner of employee relations, in conjunction with
the commissioner of human services and other state agencies,
shall evaluate whether participation in a multistate or
multiagency drug purchasing program can reduce costs or improve
the operations of the drug benefit programs administered by the
department and other state agencies. The commissioner and other
state agencies may enter into a contract with a vendor or other
states for purposes of participating in a multistate or
multiagency drug purchasing program.
Sec. 62. Minnesota Statutes 2002, section 69.772,
subdivision 2, is amended to read:
Subd. 2. [DETERMINATION OF ACCRUED LIABILITY.] Each
firefighters' relief association which pays a service pension
when a retiring firefighter meets the minimum requirements for
entitlement to a service pension specified in section 424A.02
and which in its articles of incorporation or bylaws requires
service credit for a period of service of at least 20 years of
active service for a totally nonforfeitable service pension
shall determine the accrued liability of the special fund of the
firefighters' relief association relative to each active or
deferred member of the relief association, calculated
individually using the following table:
Cumulative Accrued
Year Liability
............. .............
1 $ 60
2 124
3 190
4 260
5 334
6 410
7 492
8 576
9 666
10 760
11 858
12 962
13 1070
14 1184
15 1304
16 1428
17 1560
18 1698
19 1844
20 2000
21 and thereafter 100 additional
per year
As set forth in the table the accrued liability for each
member or deferred member of the relief association corresponds
to the cumulative years of active service to the credit of the
member. The accrued liability of the special fund for each
active or deferred member is determined by multiplying the
accrued liability from the chart by the ratio of the lump sum
service pension amount currently provided for in the bylaws of
the relief association to a service pension of $100 per year of
service. If a member has fractional service as of December 31,
the figure for service credit to be used for the determination
of accrued liability pursuant to this section shall be rounded
to the nearest full year of service credit. The total accrued
liability of the special fund as of December 31 shall be the sum
of the accrued liability attributable to each active or deferred
member of the relief association.
To the extent that the state auditor considers it to be
necessary or practical, the state auditor may specify and issue
procedures, forms, or mathematical tables for use in performing
the calculations of the accrued liability for deferred members
pursuant to this subdivision.
Sec. 63. Minnesota Statutes 2002, section 115A.929, is
amended to read:
115A.929 [FEES; ACCOUNTING.]
Each political subdivision that provides for solid waste
management shall account for all revenue collected from waste
management fees, together with interest earned on revenue from
the fees, separately from other revenue collected by the
political subdivision and shall report revenue collected from
the fees and use of the revenue separately from other revenue
and use of revenue in any required financial report or audit.
Each political subdivision must file with the director, on or
before June 30 annually, the separate report of all revenue
collected from waste management fees, together with interest on
revenue from the fees, for the previous year. For the purposes
of this section, "waste management fees" means:
(1) all fees, charges, and surcharges collected under
sections 115A.919, 115A.921, and 115A.923;
(2) all tipping fees collected at waste management
facilities owned or operated by the political subdivision;
(3) all charges imposed by the political subdivision for
waste collection and management services; and
(4) any other fees, charges, or surcharges imposed on waste
or for the purpose of waste management, whether collected
directly from generators or indirectly through property taxes or
as part of utility or other charges for services provided by the
political subdivision.
Sec. 64. Minnesota Statutes 2002, section 116J.8771, is
amended to read:
116J.8771 [WAIVER.]
The capital access program is exempt from section 16C.05,
subdivision 2, paragraph (a), clause (5) (b).
Sec. 65. Minnesota Statutes 2002, section 197.608, is
amended to read:
197.608 [VETERANS SERVICE OFFICE GRANT PROGRAM.]
Subdivision 1. [GRANT PROGRAM.] A veterans service office
grant program is established to be administered by the
commissioner of veterans affairs consisting of grants to
counties to enable them to enhance the effectiveness of their
veterans service offices.
Subd. 2. [RULE DEVELOPMENT.] The commissioner of veterans
affairs shall consult with the Minnesota association of county
veterans service officers in formulating rules to implement the
grant program.
Subd. 2a. [GRANT CYCLE.] Counties may become eligible to
receive grants on a three-year rotating basis according to a
schedule to be developed and announced in advance by the
commissioner. The schedule must list no more than one-third of
the counties in each year of the three-year cycle. A county may
be considered for a grant only in the year of its listing in the
schedule.
Subd. 3. [ELIGIBILITY.] (a) To be eligible for a grant
under this program, a county must:
(1) employ a county veterans service officer as authorized
by sections 197.60 and 197.606, who is certified to serve in
this position by the commissioner of veterans affairs;.
(2) submit a written plan for the proposed expenditures to
enhance the functioning of the county veterans service office in
accordance with the program rules; and
(3) apply for the grant according to procedures to be
established for this program by the commissioner and receive
written approval from the commissioner for the grant in advance
of making the proposed expenditures.
(b) A county that employs a newly hired county veterans
service officer who is serving an initial probationary period
and who has not been certified by the commissioner is eligible
to receive a grant under subdivision 2a.
(c) Except for the situation described in paragraph (b), a
county whose veterans service officer does not receive
certification during any year of the three-year cycle is not
eligible to receive a grant during the remainder of that cycle
or the next three-year cycle.
Subd. 4. [GRANT APPLICATION PROCESS.] (a) A grant
application must be submitted to the department of veterans
affairs according to procedures to be established by the
commissioner. The grant application must include a specific
description of the plan for enhancing the operation of the
county veterans service office. The commissioner shall determine
the process for awarding grants. A grant may be used only for
the purpose of enhancing the operations of the county veterans
service office.
(b) The commissioner shall provide a list of qualifying
uses for grant expenditures as developed in subdivision 5 and
shall approve a grant application only if it meets the criteria
for eligibility as established and announced by the commissioner
for a qualifying use and if there are sufficient funds remaining
in the grant program to cover the full amount of the grant. The
commissioner may request modification of a plan. If the
commissioner rejects a grant application, written reasons for
the rejection must be provided to the applicant county and the
county may modify the application and resubmit it.
Subd. 5. [QUALIFYING USES.] The commissioner of veterans
affairs shall determine whether the plan specified in the grant
application will enable the applicant county to enhance the
effectiveness of its county veterans office.
Notwithstanding subdivision 3, clause (1), a county may
apply for and use a grant for the training and education
required by the commissioner for a newly employed county
veterans service officer's certificate, or for the continuing
education of other staff consult with the Minnesota association
of county veterans service officers in developing a list of
qualifying uses for grants awarded under this program.
Subd. 6. [GRANT AMOUNT.] The amount of each grant must be
determined by the commissioner of veterans affairs, and may not
exceed the lesser of:
(1) the amount specified in the grant application to be
expended on the plan for enhancing the effectiveness of the
county veterans service office; or
(2) the county's share of the total funds available under
the program, determined in the following manner:
(i) (1) $1,400, if the county's veteran population is less
than 1,000, the county's grant share shall be $2,000;
(ii) (2) $2,800, if the county's veteran population is
1,000 or more but less than 3,000, the county's grant share
shall be $4,000;
(iii) (3) $4,200, if the county's veteran population is
3,000 or more but less then 10,000, the county's grant share
shall be $6,000; or
(iv) (4) $5,600, if the county's veteran population is
10,000 or more, the county's grant share shall be $8,000.
In any year, only one-half of the counties in each of the
four veteran population categories (i) to (iv) may be awarded
grants. Grants shall be awarded on a first-come first-served
basis to counties submitting applications which meet the
commissioner's criteria as established in the rules. Any county
not receiving a grant in any given year shall receive priority
consideration for a grant the following year.
In any year, after a period of time to be determined by the
commissioner, any amounts remaining from undistributed county
grant shares may be reallocated to the other counties which have
submitted qualifying application.
The veteran population of each county shall be determined
by the figure supplied by the United States Department of
Veterans Affairs, as adopted by the commissioner.
Subd. 7. [RECAPTURE.] If a county fails to use the grant
for the qualified use approved by the commissioner, the
commissioner shall seek recovery of the grant from the county
and the county must repay the grant amount.
Sec. 66. Minnesota Statutes 2002, section 237.49, is
amended to read:
237.49 [COMBINED LOCAL ACCESS SURCHARGE.]
Each local telephone company shall collect from each
subscriber an amount per telephone access line representing the
total of the surcharges required under sections 237.52, 237.70,
and 403.11. Amounts collected must be remitted to the
department of administration commissioner of public safety in
the manner prescribed in section 403.11. The department of
administration commissioner of public safety shall divide the
amounts received proportional to the individual surcharges and
deposit them in the appropriate accounts. The commissioner of
public safety may recover from the agencies receiving the
surcharges the personnel and administrative costs to collect and
distribute the surcharge. A company or the billing agent for a
company shall list the surcharges as one amount on a billing
statement sent to a subscriber.
Sec. 67. Minnesota Statutes 2002, section 237.52,
subdivision 3, is amended to read:
Subd. 3. [COLLECTION.] Every telephone company or
communications carrier that provides service capable of
originating a telecommunications relay call, including cellular
communications and other nonwire access services, in this state
shall collect the charges established by the commission under
subdivision 2 and transfer amounts collected to the commissioner
of administration public safety in the same manner as provided
in section 403.11, subdivision 1, paragraph (d). The
commissioner of administration public safety must deposit the
receipts in the fund established in subdivision 1.
Sec. 68. Minnesota Statutes 2002, section 237.701,
subdivision 1, is amended to read:
Subdivision 1. [FUND CREATED; AUTHORIZED EXPENDITURES.]
The telephone assistance fund is created as a separate account
in the state treasury to consist of amounts received by
the department of administration commissioner of public safety
representing the surcharge authorized by section 237.70,
subdivision 6, and amounts earned on the fund assets. Money in
the fund may be used only for:
(1) reimbursement to telephone companies for expenses and
credits allowed in section 237.70, subdivision 7, paragraph (d),
clause (5);
(2) reimbursement of the administrative expenses of the
department of human services to implement sections 237.69 to
237.71, not to exceed $314,000 annually;
(3) reimbursement of the administrative expenses of the
commission not to exceed $25,000 annually; and
(4) reimbursement of the statewide indirect cost of the
commission.
Sec. 69. Minnesota Statutes 2002, section 240.03, is
amended to read:
240.03 [COMMISSION POWERS AND DUTIES.]
The commission has the following powers and duties:
(1) to regulate horse racing in Minnesota to ensure that it
is conducted in the public interest;
(2) to issue licenses as provided in this chapter;
(3) to enforce all laws and rules governing horse racing;
(4) to collect and distribute all taxes provided for in
this chapter;
(5) to conduct necessary investigations and inquiries and
compel the submission of information, documents, and records it
deems necessary to carry out its duties;
(6) to supervise the conduct of pari-mutuel betting on
horse racing;
(7) to employ and supervise personnel under this chapter;
(8) to determine the number of racing days to be held in
the state and at each licensed racetrack; and
(9) to take all necessary steps to ensure the integrity of
racing in Minnesota.; and
(10) to impose fees on the racing and card playing
industries sufficient to recover the operating costs of the
commission with the approval of the legislature according to
section 16A.1283. Notwithstanding section 16A.1283, when the
legislature is not in session, the commissioner of finance may
grant interim approval for any new fees or adjustments to
existing fees that are not statutorily specified, until such
time as the legislature reconvenes and acts upon the new fees or
adjustments. As part of its biennial budget request, the
commission must propose changes to its fees that will be
sufficient to recover the operating costs of the commission.
Sec. 70. Minnesota Statutes 2002, section 240.10, is
amended to read:
240.10 [LICENSE FEES.]
The fee for a class A license is $10,000 $253,000 per year
and must be remitted on July 1. The fee for a class B license
is $100 $500 for each assigned racing day on which racing is
actually conducted, and $50 $100 for each day on which
simulcasting is authorized and actually takes place, plus
$10,000 per year if the class B license includes authorization
to operate a card club must be remitted on July 1. Included
herein are all days assigned to be conducted after January 1,
2003. The fee for a class D license is $50 for each assigned
racing day on which racing is actually conducted. Fees imposed
on class B and class D licenses must be paid to the commission
at a time and in a manner as provided by rule of the commission.
The commission shall by rule establish an annual license
fee for each occupation it licenses under section 240.08 but no
annual fee for a class C license may exceed $100.
License fee payments received must be paid by the
commission to the state treasurer for deposit in the general
fund.
Sec. 71. Minnesota Statutes 2002, section 240.15,
subdivision 6, is amended to read:
Subd. 6. [DISPOSITION OF PROCEEDS; ACCOUNT.] The
commission shall distribute all money received under this
section, and all money received from license fees and fines it
collects, as follows: according to this subdivision. All money
designated for deposit in the Minnesota breeders fund must be
paid into that fund for distribution under section 240.18 except
that all money generated by full racing card simulcasts must be
distributed as provided in section 240.18, subdivisions 2,
paragraph (d), clauses (1), (2), and (3); and 3. Revenue from
an admissions tax imposed under subdivision 1 must be paid to
the local unit of government at whose request it was imposed, at
times and in a manner the commission determines. All other
revenues Taxes received under this section by the commission,
and all license fees, fines, and other revenue it receives, and
fines collected under section 240.22 must be paid to the state
treasurer for deposit in the general fund. All revenues from
licenses and other fees imposed by the commission must be
deposited in the state treasury and credited to a racing and
card playing regulation account in the special revenue fund.
Receipts in this account are available for the operations of the
commission up to the amount authorized in biennial
appropriations from the legislature.
Sec. 72. Minnesota Statutes 2002, section 240.155,
subdivision 1, is amended to read:
Subdivision 1. [REIMBURSEMENT ACCOUNT CREDIT.] Money
received by the commission as reimbursement for the costs of
services provided by assistant veterinarians, stewards, and
medical testing of horses must be deposited in the state
treasury and credited to a racing reimbursement account, except
as provided under subdivision 2. Receipts are appropriated to
the commission to pay the costs of providing the services.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 73. Minnesota Statutes 2002, section 240A.03,
subdivision 10, is amended to read:
Subd. 10. [USE AGREEMENTS AND FEES.] The commission may
lease, license, or enter into agreements and may fix, alter,
charge, and collect rentals, fees, and charges to persons for
the use, occupation, and availability of part or all of any
premises, property, or facilities under its ownership,
operation, or control. Fees charged by the commission are not
subject to section 16A.1285. The commission may also impose
other fees it deems appropriate with the approval of the
legislature according to section 16A.1283. Notwithstanding
section 16A.1283, when the legislature is not in session, the
commissioner of finance may grant interim approval of the fees,
until such time as the legislature reconvenes and acts upon the
fees. A use agreement may provide that the other contracting
party has exclusive use of the premises at the times agreed upon.
Sec. 74. Minnesota Statutes 2002, section 240A.04, is
amended to read:
240A.04 [PROMOTION AND DEVELOPMENT OF AMATEUR SPORTS.]
In addition to the powers and duties granted under section
240A.03, the commission shall may:
(1) promote the development of olympic training centers;
(2) promote physical fitness by promoting participation in
sports;
(3) develop, foster, and coordinate physical fitness
services and programs;
(4) sponsor amateur sport workshops, clinics, and
conferences;
(5) provide recognition for outstanding developments,
achievements, and contributions to amateur sports;
(6) stimulate and promote amateur sport research;
(7) collect, disseminate, and communicate amateur sport
information;
(8) promote amateur sport and physical fitness programs in
schools and local communities;
(9) develop programs to promote personal health and
physical fitness by participation in amateur sports in
cooperation with medical, dental, sports medicine, and similar
professional societies;
(10) promote the development of recreational amateur sport
opportunities and activities in the state, including the means
of facilitating acquisition, financing, construction, and
rehabilitation of sports facilities for the holding of amateur
sporting events;
(11) promote national and international amateur sport
competitions and events;
(12) sanction or sponsor amateur sport competition;
(13) take membership in regional or national amateur sports
associations or organizations; and
(14) promote the mainstreaming and normalization of people
with physical disabilities and visual and hearing impairments in
amateur sports.
Sec. 75. Minnesota Statutes 2002, section 240A.06,
subdivision 1, is amended to read:
Subdivision 1. [SPONSORSHIP REQUIRED.] The commission
shall may sponsor and sanction a series of statewide amateur
athletic games patterned after the winter and summer Olympic
Games, with variations as required by facilities, equipment, and
expertise, and as necessary to include people with physical
disabilities and visual and hearing impairments. The games may
be held annually beginning in 1989, if money and facilities are
available, unless the time of the games would conflict with
other sporting events as the commission determines.
Sec. 76. Minnesota Statutes 2002, section 256B.435,
subdivision 2a, is amended to read:
Subd. 2a. [DURATION AND TERMINATION OF CONTRACTS.] (a) All
contracts entered into under this section are for a term of one
year. Either party may terminate this contract at any time
without cause by providing 90 calendar days' advance written
notice to the other party. Notwithstanding section 16C.05,
subdivisions 2, paragraph (a) (b), and 5, if neither party
provides written notice of termination, the contract shall be
renegotiated for additional one-year terms or the terms of the
existing contract will be extended for one year. The provisions
of the contract shall be renegotiated annually by the parties
prior to the expiration date of the contract. The parties may
voluntarily renegotiate the terms of the contract at any time by
mutual agreement.
(b) If a nursing facility fails to comply with the terms of
a contract, the commissioner shall provide reasonable notice
regarding the breach of contract and a reasonable opportunity
for the facility to come into compliance. If the facility fails
to come into compliance or to remain in compliance, the
commissioner may terminate the contract. If a contract is
terminated, provisions of section 256B.48, subdivision 1a, shall
apply.
Sec. 77. Minnesota Statutes 2002, section 268.186, is
amended to read:
268.186 [RECORDS.]
(a) Each employer shall keep true and accurate records for
the periods of time and containing the information the
commissioner may require. For the purpose of administering this
chapter, the commissioner has the power to examine, or cause to
be supplied or copied, any books, correspondence, papers,
records, or memoranda that are relevant, whether the books,
correspondence, papers, records, or memoranda are the property
of or in the possession of the employer or any other person at
any reasonable time and as often as may be necessary.
(b) The commissioner may make summaries, compilations,
photographs, duplications, or reproductions of any records, or
reports that the commissioner considers advisable for the
preservation of the information contained therein. Any
summaries, compilations, photographs, duplications, or
reproductions shall be admissible in any proceeding under this
chapter. Regardless of any restrictions contained in section
16B.50, The commissioner may duplicate records, reports,
summaries, compilations, instructions, determinations, or any
other written or recorded matter pertaining to the
administration of this chapter.
(c) Regardless of any law to the contrary, the commissioner
may provide for the destruction of any records, reports, or
reproductions thereof, or other papers, that are more than two
years old, and that are no longer necessary for determining
employer liability or an applicant's unemployment benefit rights
or for the administration of this chapter, including any
required audit. The commissioner may provide for the
destruction or disposition of any record, report, or other paper
that has been photographed, duplicated, or reproduced.
Sec. 78. Minnesota Statutes 2002, section 270.052, is
amended to read:
270.052 [AGREEMENT WITH INTERNAL REVENUE SERVICE.]
Pursuant to section 270B.12, the commissioner may enter
into an agreement with the Internal Revenue Service to identify
taxpayers who have refunds due from the department of revenue
and liabilities owing to the Internal Revenue Service. In
accordance with the procedures established in the agreement, the
Internal Revenue Service may levy against the refunds to be paid
by the department of revenue. For each refund levied upon, the
commissioner shall first deduct from the refund a fee of $20,
and then remit the refund or the amount of the levy, whichever
is less, to the Internal Revenue Service. The proceeds of fees
shall be deposited into the department of revenue recapture
revolving fund under section 270A.07, subdivision 1.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 79. Minnesota Statutes 2002, section 270.44, is
amended to read:
270.44 [CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.]
The board may establish reasonable fees or charges for
courses, examinations or materials, the proceeds of which shall
be used to finance the activities and operation of the
board. shall charge the following fees:
(1) $105 for a senior accredited Minnesota assessor
license;
(2) $80 for an accredited Minnesota assessor license;
(3) $65 for a certified Minnesota assessor specialist
license;
(4) $55 for a certified Minnesota assessor license;
(5) $50 for a course challenge examination;
(6) $35 for grading a form appraisal;
(7) $60 for grading a narrative appraisal;
(8) $30 for a reinstatement fee;
(9) $25 for a record retention fee;
(10) $20 for an educational transcript; and
(11) $30 for all retests of board-sponsored educational
courses.
[EFFECTIVE DATE.] This section is effective for license
terms beginning on or after July 1, 2004, and for all other fees
imposed on or after July 1, 2004.
Sec. 80. Minnesota Statutes 2002, section 270A.07,
subdivision 1, is amended to read:
Subdivision 1. [NOTIFICATION REQUIREMENT.] Any claimant
agency, seeking collection of a debt through setoff against a
refund due, shall submit to the commissioner information
indicating the amount of each debt and information identifying
the debtor, as required by section 270A.04, subdivision 3.
For each setoff of a debt against a refund due, the
commissioner shall charge a fee of $10 $15. The proceeds of
fees shall be allocated by depositing $2.55 $4 of each $10 $15
fee collected into a department of revenue recapture revolving
fund and depositing the remaining balance into the general
fund. The sums deposited into the revolving fund are
appropriated to the commissioner for the purpose of
administering the Revenue Recapture Act.
The claimant agency shall notify the commissioner when a
debt has been satisfied or reduced by at least $200 within 30
days after satisfaction or reduction.
[EFFECTIVE DATE.] This section is effective for refund
setoffs after June 30, 2003.
Sec. 81. Minnesota Statutes 2002, section 289A.08,
subdivision 16, is amended to read:
Subd. 16. [TAX REFUND OR RETURN PREPARERS; ELECTRONIC
FILING; PAPER FILING FEE IMPOSED.] (a) A "tax refund or return
preparer," as defined in section 289A.60, subdivision 13,
paragraph (g), who prepared more than 500 Minnesota individual
income tax returns for the prior calendar year must file all
Minnesota individual income tax returns prepared for the current
calendar year by electronic means.
(b) For tax returns prepared for the tax year beginning in
2001, the "500" in paragraph (a) is reduced to 250.
(c) For tax returns prepared for tax years beginning after
December 31, 2001, the "500" in paragraph (a) is reduced to 100.
(d) Paragraph (a) does not apply to a return if the
taxpayer has indicated on the return that the taxpayer did not
want the return filed by electronic means.
(e) For each return that is not filed electronically by a
tax refund or return preparer under this subdivision, including
returns filed under paragraph (d), a paper filing fee of $5 is
imposed upon the preparer. The fee is collected from the
preparer in the same manner as income tax.
[EFFECTIVE DATE.] This section is effective for returns
filed for tax years beginning after December 31, 2002.
Sec. 82. Minnesota Statutes 2002, section 306.95, is
amended to read:
306.95 [DUTIES OF THE COUNTY AUDITOR.]
Subdivision 1. [NOTIFICATION OF STATE AUDITOR.] Any county
auditor finding evidence of violations of this chapter when
reviewing reports or bonds filed by any person, firm,
partnership, association, or corporation operating a cemetery,
mausoleum, or columbarium must notify the state auditor's office
county attorney in a timely manner of such finding.
Subd. 2. [ANNUAL LETTER.] Every county auditor must file
an annual letter by May 31 with the state auditor's office
county attorney disclosing whether the county auditor has
detected any indications of violations of this chapter in the
reports or bonds which were filed or should have been filed. If
the county auditor has not detected from the information
supplied to the county auditor any such indications, that fact
must be reported to the state auditor county attorney in the
annual letter.
Sec. 83. [326.992] [BOND REQUIREMENT; GAS, HEATING,
VENTILATION, AIR CONDITIONING, REFRIGERATION (G/HVACR)
CONTRACTORS.]
(a) A person contracting to do gas, heating, ventilation,
cooling, air conditioning, fuel burning, or refrigeration work
must give bond to the state in the amount of $25,000 for all
work entered into within the state. The bond must be for the
benefit of persons suffering financial loss by reason of the
contractor's failure to comply with the requirements of the
State Mechanical Code. A bond given to the state must be filed
with the commissioner of administration and is in lieu of all
other bonds to any political subdivision required for work
covered by this section. The bond must be written by a
corporate surety licensed to do business in the state.
(b) The commissioner of administration may charge each
person giving bond under this section an annual bond filing fee
of $15. The money must be deposited in a special revenue fund
and is appropriated to the commissioner to cover the cost of
administering the bond program.
Sec. 84. Minnesota Statutes 2002, section 349.12, is
amended by adding a subdivision to read:
Subd. 11a. [DISTRIBUTOR SALESPERSON.] "Distributor
salesperson" means a person who in any manner receives orders
for gambling equipment or who solicits a licensed, exempt, or
excluded organization to purchase gambling equipment from a
licensed distributor.
Sec. 85. Minnesota Statutes 2002, section 349.12,
subdivision 25, is amended to read:
Subd. 25. [LAWFUL PURPOSE.] (a) "Lawful purpose" means one
or more of the following:
(1) any expenditure by or contribution to a 501(c)(3) or
festival organization, as defined in subdivision 15a, provided
that the organization and expenditure or contribution are in
conformity with standards prescribed by the board under section
349.154, which standards must apply to both types of
organizations in the same manner and to the same extent;
(2) a contribution to an individual or family suffering
from poverty, homelessness, or physical or mental disability,
which is used to relieve the effects of that poverty,
homelessness, or disability;
(3) a contribution to an individual for treatment for
delayed posttraumatic stress syndrome or a contribution to a
program recognized by the Minnesota department of human services
for the education, prevention, or treatment of compulsive
gambling;
(4) a contribution to or expenditure on a public or private
nonprofit educational institution registered with or accredited
by this state or any other state;
(5) a contribution to a scholarship fund for defraying the
cost of education to individuals where the funds are awarded
through an open and fair selection process;
(6) activities by an organization or a government entity
which recognize humanitarian or military service to the United
States, the state of Minnesota, or a community, subject to rules
of the board, provided that the rules must not include mileage
reimbursements in the computation of the per occasion
reimbursement limit and must impose no aggregate annual limit on
the amount of reasonable and necessary expenditures made to
support:
(i) members of a military marching or color guard unit for
activities conducted within the state;
(ii) members of an organization solely for services
performed by the members at funeral services; or
(iii) members of military marching, color guard, or honor
guard units may be reimbursed for participating in color guard,
honor guard, or marching unit events within the state or states
contiguous to Minnesota at a per participant rate of up to $35
per occasion;
(7) recreational, community, and athletic facilities and
activities intended primarily for persons under age 21, provided
that such facilities and activities do not discriminate on the
basis of gender and the organization complies with section
349.154;
(8) payment of local taxes authorized under this chapter,
taxes imposed by the United States on receipts from lawful
gambling, the taxes imposed by section 297E.02, subdivisions 1,
4, 5, and 6, and the tax imposed on unrelated business income by
section 290.05, subdivision 3;
(9) payment of real estate taxes and assessments on
permitted gambling premises wholly owned by the licensed
organization paying the taxes, or wholly leased by a licensed
veterans organization under a national charter recognized under
section 501(c)(19) of the Internal Revenue Code, not to exceed:
(i) for premises used for bingo, the amount that an
organization may expend under board rules on rent for bingo; and
(ii) $35,000 per year for premises used for other forms of
lawful gambling;
(10) a contribution to the United States, this state or any
of its political subdivisions, or any agency or instrumentality
thereof other than a direct contribution to a law enforcement or
prosecutorial agency;
(11) a contribution to or expenditure by a nonprofit
organization which is a church or body of communicants gathered
in common membership for mutual support and edification in
piety, worship, or religious observances;
(12) payment of the reasonable costs of an audit required
in section 297E.06, subdivision 4, provided the annual audit is
filed in a timely manner with the department of revenue;
(13) a contribution to or expenditure on a wildlife
management project that benefits the public at-large, provided
that the state agency with authority over that wildlife
management project approves the project before the contribution
or expenditure is made;
(14) expenditures, approved by the commissioner of natural
resources, by an organization for grooming and maintaining
snowmobile trails and all-terrain vehicle trails that are (1)
grant-in-aid trails established under section 85.019, or (2)
other trails open to public use, including purchase or lease of
equipment for this purpose; or
(15) conducting nutritional programs, food shelves, and
congregate dining programs primarily for persons who are age 62
or older or disabled;
(16) a contribution to a community arts organization, or an
expenditure to sponsor arts programs in the community, including
but not limited to visual, literary, performing, or musical
arts;
(17) payment of heat, water, sanitation, telephone, and
other utility bills for a building owned or leased by, and used
as the primary headquarters of, a veterans organization; or
(18) expenditure by a veterans organization of up to $5,000
in a calendar year in net costs to the organization for meals
and other membership events, limited to members and spouses,
held in recognition of military service; or
(19) payment of fees authorized under this chapter imposed
by the state of Minnesota to conduct lawful gambling in
Minnesota.
(b) Notwithstanding paragraph (a), "lawful purpose" does
not include:
(1) any expenditure made or incurred for the purpose of
influencing the nomination or election of a candidate for public
office or for the purpose of promoting or defeating a ballot
question;
(2) any activity intended to influence an election or a
governmental decision-making process;
(3) the erection, acquisition, improvement, expansion,
repair, or maintenance of real property or capital assets owned
or leased by an organization, unless the board has first
specifically authorized the expenditures after finding that (i)
the real property or capital assets will be used exclusively for
one or more of the purposes in paragraph (a); (ii) with respect
to expenditures for repair or maintenance only, that the
property is or will be used extensively as a meeting place or
event location by other nonprofit organizations or community or
service groups and that no rental fee is charged for the use;
(iii) with respect to expenditures, including a mortgage payment
or other debt service payment, for erection or acquisition only,
that the erection or acquisition is necessary to replace with a
comparable building, a building owned by the organization and
destroyed or made uninhabitable by fire or natural disaster,
provided that the expenditure may be only for that part of the
replacement cost not reimbursed by insurance; (iv) with respect
to expenditures, including a mortgage payment or other debt
service payment, for erection or acquisition only, that the
erection or acquisition is necessary to replace with a
comparable building a building owned by the organization that
was acquired from the organization by eminent domain or sold by
the organization to a purchaser that the organization reasonably
believed would otherwise have acquired the building by eminent
domain, provided that the expenditure may be only for that part
of the replacement cost that exceeds the compensation received
by the organization for the building being replaced; or (v) with
respect to an expenditure to bring an existing building into
compliance with the Americans with Disabilities Act under item
(ii), an organization has the option to apply the amount of the
board-approved expenditure to the erection or acquisition of a
replacement building that is in compliance with the Americans
with Disabilities Act;
(4) an expenditure by an organization which is a
contribution to a parent organization, foundation, or affiliate
of the contributing organization, if the parent organization,
foundation, or affiliate has provided to the contributing
organization within one year of the contribution any money,
grants, property, or other thing of value;
(5) a contribution by a licensed organization to another
licensed organization unless the board has specifically
authorized the contribution. The board must authorize such a
contribution when requested to do so by the contributing
organization unless it makes an affirmative finding that the
contribution will not be used by the recipient organization for
one or more of the purposes in paragraph (a); or
(6) a contribution to a statutory or home rule charter
city, county, or town by a licensed organization with the
knowledge that the governmental unit intends to use the
contribution for a pension or retirement fund.
Sec. 86. Minnesota Statutes 2002, section 349.151,
subdivision 4, is amended to read:
Subd. 4. [POWERS AND DUTIES.] (a) The board has the
following powers and duties:
(1) to regulate lawful gambling to ensure it is conducted
in the public interest;
(2) to issue licenses to organizations,
distributors, distributor salespersons, bingo halls,
manufacturers, and gambling managers;
(3) to collect and deposit license, permit, and
registration fees due under this chapter;
(4) to receive reports required by this chapter and inspect
all premises, records, books, and other documents of
organizations, distributors, manufacturers, and bingo halls to
insure compliance with all applicable laws and rules;
(5) to make rules authorized by this chapter;
(6) to register gambling equipment and issue registration
stamps;
(7) to provide by rule for the mandatory posting by
organizations conducting lawful gambling of rules of play and
the odds and/or house percentage on each form of lawful
gambling;
(8) to report annually to the governor and legislature on
its activities and on recommended changes in the laws governing
gambling;
(9) to impose civil penalties of not more than $500 per
violation on organizations, distributors, employees eligible to
make sales on behalf of a distributor salespersons,
manufacturers, bingo halls, and gambling managers for failure to
comply with any provision of this chapter or any rule or order
of the board;
(10) to issue premises permits to organizations licensed to
conduct lawful gambling;
(11) to delegate to the director the authority to issue or
deny license and premises permit applications and renewals under
criteria established by the board;
(12) to suspend or revoke licenses and premises permits of
organizations, distributors, distributor salespersons,
manufacturers, bingo halls, or gambling managers as provided in
this chapter;
(13) to register employees of organizations licensed to
conduct lawful gambling;
(14) to require fingerprints from persons determined by
board rule to be subject to fingerprinting;
(15) to delegate to a compliance review group of the board
the authority to investigate alleged violations, issue consent
orders, and initiate contested cases on behalf of the board;
(16) to order organizations, distributors, distributor
salespersons, manufacturers, bingo halls, and gambling managers
to take corrective actions; and
(17) to take all necessary steps to ensure the integrity of
and public confidence in lawful gambling.
(b) The board, or director if authorized to act on behalf
of the board, may by citation assess any organization,
distributor, employee eligible to make sales on behalf of a
distributor, manufacturer, bingo hall licensee, or gambling
manager a civil penalty of not more than $500 per violation for
a failure to comply with any provision of this chapter or any
rule adopted or order issued by the board. Any organization,
distributor, bingo hall licensee, gambling manager, or
manufacturer assessed a civil penalty under this paragraph may
request a hearing before the board. Appeals of citations
imposing a civil penalty are not subject to the provisions of
the Administrative Procedure Act.
(c) All fees and penalties received by the board must be
deposited in the general fund.
(d) All fees imposed by the board under sections 349.16 to
349.165 must be deposited in the state treasury and credited to
a lawful gambling regulation account in the special revenue fund.
Receipts in this account are available for the operations of the
board up to the amount authorized in biennial appropriations
from the legislature.
Sec. 87. Minnesota Statutes 2002, section 349.151,
subdivision 4b, is amended to read:
Subd. 4b. [PULL-TAB SALES FROM DISPENSING DEVICES.] (a)
The board may by rule authorize but not require the use of
pull-tab dispensing devices.
(b) Rules adopted under paragraph (a):
(1) must limit the number of pull-tab dispensing devices on
any permitted premises to three; and
(2) must limit the use of pull-tab dispensing devices to a
permitted premises which is (i) a licensed premises for on-sales
of intoxicating liquor or 3.2 percent malt beverages; or (ii) a
licensed bingo hall that allows gambling only by persons 18
years or older.
(c) Notwithstanding rules adopted under paragraph (b),
pull-tab dispensing devices may be used in establishments
licensed for the off-sale of intoxicating liquor, other than
drugstores and general food stores licensed under section
340A.405, subdivision 1.
(d) The director may charge a manufacturer a fee of up to
$5,000 per pull-tab dispensing device to cover the costs of
services provided by an independent testing laboratory to
perform testing and analysis of pull-tab dispensing devices.
The director shall deposit in a separate account in the state
treasury all money the director receives as reimbursement for
the costs of services provided by independent testing
laboratories that have entered into contracts with the state to
perform testing and analysis of pull-tab dispensing devices.
Money in the account is appropriated to the director to pay the
costs of services under those contracts.
Sec. 88. Minnesota Statutes 2002, section 349.155,
subdivision 3, is amended to read:
Subd. 3. [MANDATORY DISQUALIFICATIONS.] (a) In the case of
licenses for manufacturers, distributors, distributor
salespersons, bingo halls, and gambling managers, the board may
not issue or renew a license under this chapter, and shall
revoke a license under this chapter, if the applicant or
licensee, or a director, officer, partner, governor, or person
in a supervisory or management position of the applicant or
licensee, or an employee eligible to make sales on behalf of the
applicant or licensee:
(1) has ever been convicted of a felony or a crime
involving gambling;
(2) has ever been convicted of (i) assault, (ii) a criminal
violation involving the use of a firearm, or (iii) making
terroristic threats;
(3) is or has ever been connected with or engaged in an
illegal business;
(4) owes $500 or more in delinquent taxes as defined in
section 270.72;
(5) had a sales and use tax permit revoked by the
commissioner of revenue within the past two years; or
(6) after demand, has not filed tax returns required by the
commissioner of revenue. The board may deny or refuse to renew
a license under this chapter, and may revoke a license under
this chapter, if any of the conditions in this paragraph are
applicable to an affiliate or direct or indirect holder of more
than a five percent financial interest in the applicant or
licensee.
(b) In the case of licenses for organizations, the board
may not issue or renew a license under this chapter, and shall
revoke a license under this chapter, if the organization, or an
officer or member of the governing body of the organization:
(1) has been convicted of a felony or gross misdemeanor
within the five years before the issuance or renewal of the
license;
(2) has ever been convicted of a crime involving gambling;
or
(3) has had a license issued by the board or director
permanently revoked for violation of law or board rule.
Sec. 89. Minnesota Statutes 2002, section 349.16,
subdivision 6, is amended to read:
Subd. 6. [LICENSE CLASSIFICATIONS FEES.] The board may
issue four classes of organization licenses: a class A license
authorizing all forms of lawful gambling; a class B license
authorizing all forms of lawful gambling except bingo; a class C
license authorizing bingo only, or bingo and pull-tabs if the
gross receipts for any combination of bingo and pull-tabs does
not exceed $50,000 per year; and a class D license authorizing
raffles only. The board shall not charge a fee for an
organization license. The board shall impose an annual fee of
$350 for an organization's license application. Organizations
that expect to receive less than $100,000 in gross annual
receipts may request from the board a waiver of organization
license fees.
Sec. 90. Minnesota Statutes 2002, section 349.161,
subdivision 1, is amended to read:
Subdivision 1. [PROHIBITED ACTS; LICENSES REQUIRED.] (a)
No person may:
(1) sell, offer for sale, or furnish gambling equipment for
use within the state other than for lawful gambling exempt or
excluded from licensing, except to an organization licensed for
lawful gambling;
(2) sell, offer for sale, or furnish gambling equipment for
use within the state without having obtained a distributor
license or a distributor salesperson license under this section;
(3) sell, offer for sale, or furnish gambling equipment for
use within the state that is not purchased or obtained from a
manufacturer or distributor licensed under this chapter; or
(4) sell, offer for sale, or furnish gambling equipment for
use within the state that has the same serial number as another
item of gambling equipment of the same type sold or offered for
sale or furnished for use in the state by that distributor.
(b) No licensed distributor salesperson may sell, offer for
sale, or furnish gambling equipment for use within the state
without being employed by a licensed distributor or owning a
distributor license.
Sec. 91. Minnesota Statutes 2002, section 349.161,
subdivision 4, is amended to read:
Subd. 4. [FEES.] (a) The initial annual fee for a
distributor's license is $3,500 $6,000. The initial term of a
distributor's license is one year. Renewal licenses under this
section are valid for two years and the fee for the renewal
license is $7,000.
(b) The annual fee for a distributor salesperson license is
$100.
Sec. 92. Minnesota Statutes 2002, section 349.161,
subdivision 5, is amended to read:
Subd. 5. [PROHIBITION.] (a) No distributor, distributor
salesperson, or other employee of a distributor, may also be a
wholesale distributor of alcoholic beverages or an employee of a
wholesale distributor of alcoholic beverages.
(b) No distributor, distributor salesperson, or any
representative, agent, affiliate, or other employee of a
distributor, may: (1) be involved in the conduct of lawful
gambling by an organization; (2) keep or assist in the keeping
of an organization's financial records, accounts, and
inventories; or (3) prepare or assist in the preparation of tax
forms and other reporting forms required to be submitted to the
state by an organization.
(c) No distributor, distributor salesperson, or any
representative, agent, affiliate, or other employee of a
distributor may provide a lessor of gambling premises any
compensation, gift, gratuity, premium, or other thing of value.
(d) No distributor, distributor salesperson, or any
representative, agent, affiliate, or other employee of a
distributor may participate in any gambling activity at any
gambling site or premises where gambling equipment purchased
from that distributor or distributor salesperson is being used
in the conduct of lawful gambling.
(e) No distributor, distributor salesperson, or any
representative, agent, affiliate, or other employee of a
distributor may alter or modify any gambling equipment, except
to add a "last ticket sold" prize sticker.
(f) No distributor, distributor salesperson, or any
representative, agent, affiliate, or other employee of a
distributor may: (1) recruit a person to become a gambling
manager of an organization or identify to an organization a
person as a candidate to become gambling manager for the
organization; or (2) identify for an organization a potential
gambling location.
(g) No distributor or distributor salesperson may purchase
gambling equipment for resale to a person for use within the
state from any person not licensed as a manufacturer under
section 349.163.
(h) No distributor or distributor salesperson may sell
gambling equipment to any person for use in Minnesota other than
(i) a licensed organization or organization excluded or exempt
from licensing, or (ii) the governing body of an Indian tribe.
(i) No distributor or distributor salesperson may sell or
otherwise provide a pull-tab or tipboard deal with the symbol
required by section 349.163, subdivision 5, paragraph (h),
visible on the flare to any person other than in Minnesota to a
licensed organization or organization exempt from licensing.
Sec. 93. Minnesota Statutes 2002, section 349.162,
subdivision 1, is amended to read:
Subdivision 1. [STAMP REQUIRED.] (a) A distributor may not
sell, transfer, furnish, or otherwise provide to a person, and
no person may purchase, borrow, accept, or acquire from a
distributor gambling equipment for use within the state unless
the equipment has been registered with the board and has a
registration stamp affixed, except for gambling equipment not
stamped by the manufacturer pursuant to section 349.163,
subdivision 5 or 8. The board shall charge a fee of five cents
for each stamp. Each stamp must bear a registration number
assigned by the board. A distributor or manufacturer is
entitled to a refund for unused registration stamps and
replacement for registration stamps which are defective or
canceled by the distributor or manufacturer.
(b) A manufacturer must return all unused registration
stamps in its possession to the board by February 1, 1995. No
manufacturer may possess unaffixed registration stamps after
February 1, 1995.
(c) After February 1, 1996, no person may possess any
unplayed pull-tab or tipboard deals with a registration stamp
affixed to the flare or any unplayed paddleticket cards with a
registration stamp affixed to the master flare. This paragraph
does not apply to unplayed pull-tab or tipboard deals with a
registration stamp affixed to the flare, or to unplayed
paddleticket cards with a registration stamp affixed to the
master flare, if the deals or cards are identified on a list of
existing inventory submitted by a licensed organization or a
licensed distributor, in a format prescribed by the commissioner
of revenue, to the commissioner of revenue on or before February
1, 1996. Gambling equipment kept in violation of this paragraph
is contraband under section 349.2125.
Sec. 94. Minnesota Statutes 2002, section 349.163,
subdivision 2, is amended to read:
Subd. 2. [LICENSE; FEE.] The initial license under this
section is valid for one year. The fee for the initial license
is $5,000. Renewal licenses under this section are valid for
two years and the fee for the renewal license is $10,000. The
annual fee for a manufacturer's license is $9,000.
Sec. 95. Minnesota Statutes 2002, section 349.163,
subdivision 6, is amended to read:
Subd. 6. [SAMPLES OF GAMBLING EQUIPMENT.] The board shall
require each licensed manufacturer to submit to the board one or
more samples of each item of gambling equipment the manufacturer
manufactures for use or resale in this state. The board shall
inspect and test all the equipment it deems necessary to
determine the equipment's compliance with law and board rules.
Samples required under this subdivision must be approved by the
board before the equipment being sampled is shipped into or sold
for use or resale in this state. The board shall impose a fee
of $25 for each item of gambling equipment that the manufacturer
submits for approval or for which the manufacturer requests
approval. The board shall impose a fee of $100 for each sample
of gambling equipment that it tests. The board may require
samples of gambling equipment to be tested by an independent
testing laboratory prior to submission to the board for
approval. All costs of testing by an independent testing
laboratory must be borne by the manufacturer. An independent
testing laboratory used by a manufacturer to test samples of
gambling equipment must be approved by the board before the
equipment is submitted to the laboratory for testing. The board
may request the assistance of the commissioner of public safety
and the director of the state lottery in performing the tests.
Sec. 96. Minnesota Statutes 2002, section 349.164,
subdivision 4, is amended to read:
Subd. 4. [FEES; TERM OF LICENSE.] The initial annual fee
for a bingo hall license is $2,500 $4,000. An initial license
under this section is valid for one year. Renewal licenses
under this section are valid for two years and the fee for the
renewal license is $5,000.
Sec. 97. Minnesota Statutes 2002, section 349.165,
subdivision 3, is amended to read:
Subd. 3. [FEES.] (a) The board may issue four classes of
premises permits corresponding to the classes of licenses
authorized to organizations licensed under section 349.16,
subdivision 6. The annual fee for each class of premises permit
is: $150.
(1) $400 for a class A permit;
(2) $250 for a class B permit;
(3) $200 for a class C permit; and
(4) $150 for a class D permit.
(b) If a premises permit is issued during the second year
of an organization's license, the fee for each class of permit
is:
(1) $200 for a class A permit;
(2) $125 for a class B permit;
(3) $100 for a class C permit; and
(4) $75 for a class D permit.
(b) In addition to the annual fee for a premises permit, an
organization must pay a monthly regulatory fee of 0.1 percent of
the organization's gross receipts from lawful gambling conducted
at that site. The fee must be reported and paid on a monthly
basis in a format as determined by the commissioner of revenue,
and remitted to the commissioner of revenue along with the
organization's monthly tax return for that premises. All
premises permit fees received by the commissioner of revenue
under this subdivision must be deposited in the lawful gambling
regulation account in the special revenue fund according to
section 349.151. Failure to pay the monthly premises permit
fees in a timely manner may result in disciplinary action by the
board.
Sec. 98. Minnesota Statutes 2002, section 349.166,
subdivision 1, is amended to read:
Subdivision 1. [EXCLUSIONS.] (a) Bingo may be conducted
without a license and without complying with sections 349.168,
subdivisions 1 and 2; 349.17, subdivisions 1, 4, and 5; 349.18,
subdivision 1; and 349.19, if it is conducted:
(1) by an organization in connection with a county fair,
the state fair, or a civic celebration and is not conducted for
more than 12 consecutive days and is limited to no more than
four separate applications for activities applied for and
approved in a calendar year; or
(2) by an organization that conducts four or fewer bingo
occasions in a calendar year.
An organization that holds a license to conduct lawful
gambling under this chapter may not conduct bingo under this
subdivision.
(b) Bingo may be conducted within a nursing home or a
senior citizen housing project or by a senior citizen
organization if the prizes for a single bingo game do not exceed
$10, total prizes awarded at a single bingo occasion do not
exceed $200, no more than two bingo occasions are held by the
organization or at the facility each week, only members of the
organization or residents of the nursing home or housing project
are allowed to play in a bingo game, no compensation is paid for
any persons who conduct the bingo, and a manager is appointed to
supervise the bingo. Bingo conducted under this paragraph is
exempt from sections 349.11 to 349.23, and the board may not
require an organization that conducts bingo under this
paragraph, or the manager who supervises the bingo, to register
or file a report with the board. The gross receipts from bingo
conducted under the limitations of this subdivision are exempt
from taxation under chapter 297A.
(c) Raffles may be conducted by an organization without a
license and without complying with sections 349.154 to 349.165
and 349.167 to 349.213 if the value of all raffle prizes awarded
by the organization in a calendar year does not
exceed $750 $1,500.
(d) Except as provided in paragraph (b), the organization
must maintain all required records of excluded gambling activity
for 3-1/2 years.
Sec. 99. Minnesota Statutes 2002, section 349.166,
subdivision 2, is amended to read:
Subd. 2. [EXEMPTIONS.] (a) Lawful gambling may be
conducted by an organization without a license and without
complying with sections 349.168, subdivisions 1 and 2; 349.17,
subdivisions 4 and 5; 349.18, subdivision 1; and 349.19 if:
(1) the organization conducts lawful gambling on five or
fewer days in a calendar year;
(2) the organization does not award more than $50,000 in
prizes for lawful gambling in a calendar year;
(3) the organization pays a fee of $25 $50 to the board,
notifies the board in writing not less than 30 days before each
lawful gambling occasion of the date and location of the
occasion, or 60 days for an occasion held in the case of a city
of the first class, the types of lawful gambling to be
conducted, the prizes to be awarded, and receives an exemption
identification number;
(4) the organization notifies the local government unit 30
days before the lawful gambling occasion, or 60 days for an
occasion held in a city of the first class;
(5) the organization purchases all gambling equipment and
supplies from a licensed distributor; and
(6) the organization reports to the board, on a single-page
form prescribed by the board, within 30 days of each gambling
occasion, the gross receipts, prizes, expenses, expenditures of
net profits from the occasion, and the identification of the
licensed distributor from whom all gambling equipment was
purchased.
(b) If the organization fails to file a timely report as
required by paragraph (a), clause (3) or (6), the board shall
not issue any authorization, license, or permit to the
organization to conduct lawful gambling on an exempt, excluded,
or licensed basis until the report has been filed.
(c) Merchandise prizes must be valued at their fair market
value.
(d) Unused pull-tab and tipboard deals must be returned to
the distributor within seven working days after the end of the
lawful gambling occasion. The distributor must accept and pay a
refund for all returns of unopened and undamaged deals returned
under this paragraph.
(e) An organization that is exempt from taxation on
purchases of pull-tabs and tipboards under section 297E.02,
subdivision 4, paragraph (b), clause (4), must return to the
distributor any tipboard or pull-tab deal no part of which is
used at the lawful gambling occasion for which it was purchased
by the organization.
(f) The organization must maintain all required records of
exempt gambling activity for 3-1/2 years.
Sec. 100. [349.2113] [PRIZE PAYOUT LIMIT.]
On or after January 1, 2004, a licensed organization may
not put into play a pull-tab or tipboard deal that provides for
a prize payout of greater than 85 percent of the ideal gross of
the deal.
Sec. 101. Minnesota Statutes 2002, section 349A.08,
subdivision 5, is amended to read:
Subd. 5. [PAYMENT; UNCLAIMED PRIZES.] A prize in the state
lottery must be claimed by the winner within one year of the
date of the drawing at which the prize was awarded or the last
day sales were authorized for a game where a prize was
determined in a manner other than by means of a drawing. If a
valid claim is not made for a prize payable directly by the
lottery by the end of this period, the prize money is considered
unclaimed and the winner of the prize shall have no further
claim to the prize. A prize won by a person who purchased the
winning ticket in violation of section 349A.12, subdivision 1,
or won by a person ineligible to be awarded a prize under
subdivision 7 must be treated as an unclaimed prize under this
section. The director shall must transfer 70 percent of all
unclaimed prize money at the end of each fiscal year from the
lottery cash flow account as follows: of the 70 percent, 40
percent must be transferred to the Minnesota environment and
natural resources trust fund and 60 percent must be transferred
to the general fund. The remaining 30 percent of the unclaimed
prize money must be added by the director to prize pools of
subsequent lottery games.
Sec. 102. Minnesota Statutes 2002, section 403.02,
subdivision 10, is amended to read:
Subd. 10. [COMMISSIONER.] "Commissioner" means the
commissioner of administration public safety.
Sec. 103. Minnesota Statutes 2002, section 403.06, is
amended to read:
403.06 [DEPARTMENT DUTIES.]
Subdivision 1. [DUTIES.] (a) The department of
administration commissioner shall coordinate the maintenance of
911 systems. The department commissioner shall aid counties in
the formulation of concepts, methods, and procedures which will
improve the operation and maintenance of 911 systems. The
department commissioner shall establish procedures for
determining and evaluating requests for variations from the
established design standards. The department commissioner shall
respond to requests by wireless or wire line telecommunications
service providers or by counties or other governmental agencies
for system agreements, contracts, and tariff language promptly
and no later than within 45 days of the request unless otherwise
mutually agreed to by the parties.
(b) The department commissioner shall prepare a biennial
budget for maintaining the 911 system. By December 15 of each
year, the department commissioner shall prepare an annual
submit a report to the legislature detailing the expenditures
for maintaining the 911 system, the 911 fees collected, the
balance of the 911 fund, and the 911-related administrative
expenses of the department commissioner. The department
commissioner is authorized to expend funds money that have has
been appropriated to pay for the maintenance, enhancements, and
expansion of the 911 system.
Subd. 2. [WAIVER.] Any county, other governmental agency,
wireless telecommunications service provider, or wire line
telecommunications service provider may petition the department
of administration commissioner for a waiver of all or portions
of the requirements. A waiver may be granted upon a
demonstration by the petitioner that the requirement is
economically infeasible.
Sec. 104. Minnesota Statutes 2002, section 403.07,
subdivision 1, is amended to read:
Subdivision 1. [RULES.] The department of
administration commissioner shall establish and adopt in
accordance with chapter 14, rules for the administration of this
chapter and for the development of 911 systems in the state
including:
(1) design standards for 911 systems incorporating the
standards adopted pursuant to subdivision 2 for the seven-county
metropolitan area; and
(2) a procedure for determining and evaluating requests for
variations from the established design standards.
Sec. 105. Minnesota Statutes 2002, section 403.07,
subdivision 2, is amended to read:
Subd. 2. [DESIGN STANDARDS.] The metropolitan 911 board
shall establish and adopt design standards for the metropolitan
area 911 system and transmit them to the department of
administration commissioner for incorporation into the rules
adopted pursuant to this section.
Sec. 106. Minnesota Statutes 2002, section 403.07,
subdivision 3, is amended to read:
Subd. 3. [DATABASE.] In 911 systems that have been
approved by the department of administration commissioner for a
local location identification database, each wire line
telecommunications service provider shall provide current
customer names, service addresses, and telephone numbers to each
public safety answering point within the 911 system and shall
update the information according to a schedule prescribed by the
county 911 plan. Information provided under this subdivision
must be provided in accordance with the transactional record
disclosure requirements of the federal Electronic Communications
Privacy Act of 1986, United States Code, title 18, section 2703,
subsection (c), paragraph (1), subparagraph (B)(iv).
Sec. 107. Minnesota Statutes 2002, section 403.09,
subdivision 1, is amended to read:
Subdivision 1. [DEPARTMENT AUTHORITY.] At the request of
the department of administration commissioner of public safety,
the attorney general may commence proceedings in the district
court against any person or public or private body to enforce
the provisions of this chapter.
Sec. 108. Minnesota Statutes 2002, section 403.11, is
amended to read:
403.11 [911 SYSTEM COST ACCOUNTING REQUIREMENTS; FEE.]
Subdivision 1. [EMERGENCY TELECOMMUNICATIONS SERVICE FEE.]
(a) Each customer of a wireless or wire line telecommunications
service provider that furnishes service capable of originating a
911 emergency telephone call is assessed a fee to cover the
costs of ongoing maintenance and related improvements for
trunking and central office switching equipment for 911
emergency telecommunications service, plus administrative and
staffing costs of the department of administration commissioner
related to managing the 911 emergency telecommunications service
program. Recurring charges by a wire line telecommunications
service provider for updating the information required by
section 403.07, subdivision 3, must be paid by the
commissioner of administration if the wire line
telecommunications service provider is included in an approved
911 plan and the charges are made pursuant to tariff, price
list, or contract. The commissioner of administration shall
transfer an amount equal to two cents a month from The fee
assessed under this section on wireless telecommunications
services to the commissioner of public safety must also be used
for the purpose of offsetting the costs, including
administrative and staffing costs, incurred by the state patrol
division of the department of public safety in handling 911
emergency calls made from wireless phones.
(b) Money remaining in the 911 emergency telecommunications
service account after all other obligations are paid must not
cancel and is carried forward to subsequent years and may be
appropriated from time to time to the commissioner of
administration to provide financial assistance to counties for
the improvement of local emergency telecommunications services.
The improvements may include providing access to 911 service for
telecommunications service subscribers currently without access
and upgrading existing 911 service to include automatic number
identification, local location identification, automatic
location identification, and other improvements specified in
revised county 911 plans approved by the department commissioner.
(c) The fee may not be less than eight cents nor more than
33 40 cents a month for each customer access line or other basic
access service, including trunk equivalents as designated by the
public utilities commission for access charge purposes and
including wireless telecommunications services. With the
approval of the commissioner of finance, the commissioner of
administration public safety shall establish the amount of the
fee within the limits specified and inform the companies and
carriers of the amount to be collected. When the revenue bonds
authorized under section 473.898, subdivision 1, have been fully
paid or defeased, the commissioner shall reduce the fee to
reflect that debt service on the bonds is no longer needed. The
commissioner shall provide companies and carriers a minimum of
45 days' notice of each fee change. For fiscal year 2003, the
commissioner of administration shall provide a minimum of 35
days' notice of each fee change. The fee must be the same for
all customers.
(d) The fee must be collected by each wireless or wire line
telecommunications service provider subject to the fee. Fees
are payable to and must be submitted to the commissioner of
administration monthly before the 25th of each month following
the month of collection, except that fees may be submitted
quarterly if less than $250 a month is due, or annually if less
than $25 a month is due. Receipts must be deposited in the
state treasury and credited to a 911 emergency
telecommunications service account in the special revenue fund.
The money in the account may only be used for 911
telecommunications services as provided in paragraph (a).
(e) This subdivision does not apply to customers of
interexchange carriers.
(f) The installation and recurring charges for integrating
wireless 911 calls into enhanced 911 systems must be paid by the
commissioner if the 911 service provider is included in the
statewide design plan and the charges are made pursuant to
tariff, price list, or contract.
Subd. 3. [METHOD OF PAYMENT.] (a) Any wireless or wire
line telecommunications service provider incurring reimbursable
costs under subdivision 1 shall submit an invoice itemizing rate
elements by county or service area to the commissioner of
administration for 911 services furnished under tariff, price
list, or contract. Any wireless or wire line telecommunications
service provider is eligible to receive payment for 911 services
rendered according to the terms and conditions specified in the
contract. Competitive local exchange carriers holding
certificates of authority from the public utilities commission
are eligible to receive payment for recurring 911 services
provided after July 1, 2001. The commissioner shall pay the
invoice within 30 days following receipt of the invoice unless
the commissioner notifies the service provider that the
commissioner disputes the invoice.
(b) The commissioner of administration shall estimate the
amount required to reimburse wireless and wire line
telecommunications service providers for the state's obligations
under subdivision 1 and the governor shall include the estimated
amount in the biennial budget request.
Subd. 3a. [TIMELY CERTIFICATION.] A certification must be
submitted to the commissioner of administration no later than
two years after commencing a new or additional eligible 911
service. Any wireless or wire line telecommunications service
provider incurring reimbursable costs under this section at any
time before January 1, 2003, may certify those costs for payment
to the commissioner of administration according to this section
for a period of 90 days after January 1, 2003. During this
period, the commissioner of administration shall reimburse any
wireless or wire line telecommunications service provider for
approved, certified costs without regard to any contrary
provision of this subdivision.
Subd. 3b. [CERTIFICATION.] All wireless and wire line
telecommunications service providers shall submit a
self-certification form signed by an officer of the company to
the department commissioner with invoices for payment of an
initial or changed service described in the service provider's
911 contract. The self-certification shall affirm that the 911
service contracted for is being provided and the costs invoiced
for the service are true and correct. All certifications are
subject to verification and audit.
Subd. 3c. [AUDIT.] If the commissioner of administration
determines that an audit is necessary to document the
certification described in subdivision 3b, the wireless or wire
line telecommunications service provider must contract with an
independent certified public accountant to conduct the audit.
The audit must be conducted according to generally accepted
accounting principles. The wireless or wire line
telecommunications service provider is responsible for any costs
associated with the audit.
Subd. 4. [LOCAL RECURRING COSTS.] Recurring costs of
telecommunications equipment and services at public safety
answering points must be borne by the local governmental agency
operating the public safety answering point or allocated
pursuant to section 403.10, subdivision 3. Costs attributable
to local government electives for services not otherwise
addressed under section 403.11 or 403.113 must be borne by the
governmental agency requesting the elective service.
Subd. 5. [TARIFF NOTIFICATION.] Wire line
telecommunications service providers or wireless
telecommunications service providers holding eligible
telecommunications carrier status shall give notice to the
department of administration commissioner and any other affected
governmental agency of tariff or price list changes related to
911 service at the same time that the filing is made with the
public utilities commission.
Sec. 109. Minnesota Statutes 2002, section 403.113, is
amended to read:
403.113 [ENHANCED 911 SERVICE COSTS; FEE.]
Subdivision 1. [FEE.] (a) Each customer receiving service
from a wireless or wire line telecommunications service provider
is assessed a fee to fund implementation, operation,
maintenance, enhancement, and expansion of enhanced 911 service,
including acquisition of necessary equipment and the costs of
the commissioner to administer the program. The actual fee
assessed under section 403.11 and the enhanced 911 service fee
must be collected as one amount and may not exceed the amount
specified in section 403.11, subdivision 1, paragraph (c).
(b) The enhanced 911 service fee must be collected and
deposited in the same manner as the fee in section 403.11 and
used solely for the purposes of paragraph (a) and subdivision 3.
(c) The commissioner of the department of administration,
in consultation with counties and 911 system users, shall
determine the amount of the enhanced 911 service fee and. The
fee must include at least 10 cents per month to be distributed
under subdivision 2. The commissioner shall inform wireless and
wire line telecommunications service providers that provide
service capable of originating a 911 emergency telephone call of
the total amount of the 911 service fees in the same manner as
provided in section 403.11.
Subd. 2. [DISTRIBUTION OF MONEY.] (a) After payment of the
costs of the department of administration commissioner to
administer the program, the commissioner shall distribute the
money collected under this section as follows:
(1) one-half of the amount equally to all qualified
counties, and after October 1, 1997, to all qualified counties,
existing ten public safety answering points operated by the
Minnesota state patrol, and each governmental entity operating
the individual public safety answering points serving the
metropolitan airports commission, the Red Lake Indian
Reservation, and the University of Minnesota police department;
and
(2) the remaining one-half to qualified counties and cities
with existing 911 systems based on each county's or city's
percentage of the total population of qualified counties and
cities. The population of a qualified city with an existing
system must be deducted from its county's population when
calculating the county's share under this clause if the city
seeks direct distribution of its share.
(b) A county's share under subdivision 1 must be shared pro
rata between the county and existing city systems in the
county. A county or city or other governmental entity as
described in paragraph (a), clause (1), shall deposit money
received under this subdivision in an interest-bearing fund or
account separate from the governmental entity's general fund and
may use money in the fund or account only for the purposes
specified in subdivision 3.
(c) A county or city or other governmental entity as
described in paragraph (a), clause (1), is not qualified to
share in the distribution of money for enhanced 911 service if
it has not implemented enhanced 911 service before December 31,
1998.
(d) For the purposes of this subdivision, "existing city
system" means a city 911 system that provides at least basic 911
service and that was implemented on or before April 1, 1993.
Subd. 3. [LOCAL EXPENDITURES.] (a) Money distributed under
subdivision 2 for enhanced 911 service may be spent on enhanced
911 system costs for the purposes stated in subdivision 1,
paragraph (a). In addition, money may be spent to lease,
purchase, lease-purchase, or maintain enhanced 911 equipment,
including telephone equipment; recording equipment; computer
hardware; computer software for database provisioning,
addressing, mapping, and any other software necessary for
automatic location identification or local location
identification; trunk lines; selective routing equipment; the
master street address guide; dispatcher public safety answering
point equipment proficiency and operational skills; pay for
long-distance charges incurred due to transferring 911 calls to
other jurisdictions; and the equipment necessary within the
public safety answering point for community alert systems and to
notify and communicate with the emergency services requested by
the 911 caller.
(b) Money distributed for enhanced 911 service may not be
spent on:
(1) purchasing or leasing of real estate or cosmetic
additions to or remodeling of communications centers;
(2) mobile communications vehicles, fire engines,
ambulances, law enforcement vehicles, or other emergency
vehicles;
(3) signs, posts, or other markers related to addressing or
any costs associated with the installation or maintenance of
signs, posts, or markers.
Subd. 4. [AUDITS.] Each county and city or other
governmental entity as described in subdivision 2, paragraph
(a), clause (1), shall conduct an annual audit on the use of
funds distributed to it for enhanced 911 service. A copy of
each audit report must be submitted to the commissioner of
administration.
Sec. 110. Minnesota Statutes 2002, section 458D.17,
subdivision 5, is amended to read:
Subd. 5. [AUDIT.] The board shall provide for and pay the
cost of an independent annual audit of its official books and
records by the state public examiner auditor or a certified
public accountant.
Sec. 111. Minnesota Statutes 2002, section 471.696, is
amended to read:
471.696 [FISCAL YEAR; DESIGNATION.]
Beginning in 1979, the fiscal year of a city and all of its
funds shall be the calendar year, except that a city may, by
resolution, provide that the fiscal year for city-owned nursing
homes be the reporting year designated by the commissioner of
human services. Beginning in 1994, the fiscal year of a town
and all of its funds shall be the calendar year. The state
auditor may upon request of a town and a showing of inability to
conform, extend the deadline for compliance with this section
for one year.
Sec. 112. Minnesota Statutes 2002, section 471.999, is
amended to read:
471.999 [REPORT TO LEGISLATURE.]
The commissioner of employee relations shall report to the
legislature by January 1 of each year on the status of
compliance with section 471.992, subdivision 1, by governmental
subdivisions.
The report must include a list of the political
subdivisions in compliance with section 471.992, subdivision 1,
and the estimated cost of compliance. The report must also
include a list of political subdivisions found by the
commissioner to be not in compliance, the basis for that
finding, recommended changes to achieve compliance, estimated
cost of compliance, and recommended penalties, if any. The
commissioner's report must include a list of subdivisions that
did not comply with the reporting requirements of this section.
The commissioner may request, and a subdivision shall provide,
any additional information needed for the preparation of a
report under this subdivision.
Notwithstanding any rule to the contrary, beginning in
2005, a political subdivision must report on its compliance with
the requirements of sections 471.991 to 471.999 no more
frequently than once every five years. No report from a
political subdivision is required for 2003 and 2004.
Sec. 113. Minnesota Statutes 2002, section 473.891,
subdivision 10, is amended to read:
Subd. 10. [SECOND PHASE.] "Second phase" means the
metropolitan radio board building subsystems for providing
assistance to local government units building subsystems in the
metropolitan area that did not build their own subsystems in the
first phase.
Sec. 114. Minnesota Statutes 2002, section 473.891, is
amended by adding a subdivision to read:
Subd. 11. [THIRD PHASE.] "Third phase" means an extension
of the backbone system to serve the southeast and central
districts of the state patrol.
Sec. 115. Minnesota Statutes 2002, section 473.898,
subdivision 1, is amended to read:
Subdivision 1. [AUTHORIZATION.] After consulting with the
commissioner of finance, the council, if requested by a vote of
at least two-thirds of all of the members of the metropolitan
radio board public safety radio communication system planning
committee established under section 473.097, may, by resolution,
authorize the issuance of its revenue bonds for any of the
following purposes to:
(1) provide funds for regionwide mutual aid and emergency
medical services communications;
(2) provide funds for the elements of the first phase of
the regionwide public safety radio communications system that
the board determines are of regionwide benefit and support
mutual aid and emergency medical services communication
including, but not limited to, costs of master controllers of
the backbone;
(3) provide money for the second phase of the public safety
radio communication system; or
(4) provide money for the third phase of the public safety
radio communication system;
(5) to the extent money is available after meeting the
needs described in clauses (1) to (3), provide money to
reimburse local units of government for amounts expended for
capital improvements to the first phase system previously paid
for by the local government units; or
(6) refund bonds issued under this section.
Sec. 116. Minnesota Statutes 2002, section 473.898,
subdivision 3, is amended to read:
Subd. 3. [LIMITATIONS.] (a) The principal amount of the
bonds issued pursuant to subdivision 1, exclusive of any
original issue discount, shall not exceed the amount of
$10,000,000 plus the amount the council determines necessary to
pay the costs of issuance, fund reserves, debt service, and pay
for any bond insurance or other credit enhancement.
(b) In addition to the amount authorized under paragraph
(a), the council may issue bonds under subdivision 1 in a
principal amount of $3,306,300, plus the amount the council
determines necessary to pay the cost of issuance, fund reserves,
debt service, and any bond insurance or other credit
enhancement. The proceeds of bonds issued under this paragraph
may not be used to finance portable or subscriber radio sets.
(c) In addition to the amount authorized under paragraphs
(a) and (b), the council may issue bonds under subdivision 1 in
a principal amount of $12,000,000 $18,000,000, plus the amount
the council determines necessary to pay the costs of issuance,
fund reserves, debt service, and any bond insurance or other
credit enhancement. The proceeds of bonds issued under this
paragraph must be used to pay up to 30 50 percent of the cost to
a local government unit of building a subsystem and may not be
used to finance portable or subscriber radio sets. The bond
proceeds may be used to make improvements to an existing 800 MHz
radio system that will interoperate with the regionwide public
safety radio communication system, provided that the
improvements conform to the board's plan and technical
standards. The council must time the sale and issuance of the
bonds so that the debt service on the bonds can be covered by
the additional revenue that will become available in the fiscal
year ending June 30, 2005, generated under section 403.11 and
appropriated under section 473.901.
(d) In addition to the amount authorized under paragraphs
(a) to (c), the council may issue bonds under subdivision 1 in a
principal amount of up to $27,000,000, plus the amount the
council determines necessary to pay the costs of issuance, fund
reserves, debt service, and any bond insurance or other credit
enhancement. The proceeds of bonds issued under this paragraph
are appropriated to the commissioner of public safety for phase
three of the public safety radio communication system. In
anticipation of the receipt by the commissioner of public safety
of the bond proceeds, the metropolitan radio board may advance
money from its operating appropriation to the commissioner of
public safety to pay for design and preliminary engineering for
phase three. The commissioner of public safety must return
these amounts to the metropolitan radio board when the bond
proceeds are received.
Sec. 117. Minnesota Statutes 2002, section 473.901, is
amended to read:
473.901 [ADMINISTRATION DEPARTMENT APPROPRIATION;
TRANSFERS; BUDGET.]
Subdivision 1. [STANDING APPROPRIATION; COSTS COVERED.]
For each fiscal year beginning with the fiscal year commencing
July 1, 1997, the amount necessary to pay the following costs is
appropriated to the commissioner of administration public safety
from the 911 emergency telephone telecommunications service
account established under section 403.11:
(1) debt service costs and reserves for bonds issued
pursuant to section 473.898;
(2) repayment of the right-of-way acquisition loans;
(3) costs of design, construction, maintenance of, and
improvements to those elements of the first and, second, and
third phases that support mutual aid communications and
emergency medical services;
(4) recurring charges for leased sites and equipment for
those elements of the first and, second, and third phases that
support mutual aid and emergency medical communication services;
or
(5) aid to local units of government for sites and
equipment in support of mutual aid and emergency medical
communications services.
This appropriation shall be used to pay annual debt service
costs and reserves for bonds issued pursuant to section 473.898
prior to use of fee money to pay other costs eligible under this
subdivision. In no event shall the appropriation for each
fiscal year exceed an amount equal to four cents a month for
each customer access line or other basic access service,
including trunk equivalents as designated by the public
utilities commission for access charge purposes and including
cellular and other nonwire access services, in the fiscal year.
Beginning July 1, 2004, this amount will increase to 5.5 13
cents a month.
Subd. 2. [RADIO BOARD BUDGET.] The metropolitan council
shall transmit the annual budget of the radio board to the
commissioner of administration public safety no later than
December 15 of each year. The commissioner of administration
shall include all eligible costs approved by the radio board for
the regionwide public safety communication system in its the
commissioner's request for legislative appropriations from the
911 emergency telephone telecommunications service fee account.
All eligible costs approved by the radio board shall be included
in the commissioner of administration's appropriation request.
Subd. 3. [MONTHLY APPROPRIATION TRANSFERS.] Each month,
before the 25th day of the month, the commissioner of
administration shall transmit to the metropolitan council 1/12
of its total approved appropriation for the regionwide public
safety communication system.
Subd. 4. [IMPLEMENTATION OF PHASES THREE TO SIX.] To
implement phases three to six of the statewide public safety
radio communication system, the commissioner of public safety
shall contract with the commissioner of transportation to
construct, own, operate, maintain, and enhance the elements of
phases three to six identified in the plan developed under
section 473.907. The commissioner of transportation, under
appropriate state law, shall contract for, or procure by
purchase or lease (including joint purchase and lease
agreements), construction, installation of materials, supplies
and equipment, and other services as may be needed to build,
operate, and maintain phases three to six of the system.
Sec. 118. Minnesota Statutes 2002, section 473.902, is
amended by adding a subdivision to read:
Subd. 6. [OPERATING COSTS OF PHASES THREE TO SIX.] (a) The
ongoing costs of the commissioner in operating phases three to
six of the statewide public safety radio communication system
shall be allocated among and paid by the following users, all in
accordance with the statewide public safety radio communication
system plan developed by the planning committee under section
473.907:
(1) the state of Minnesota for its operations using the
system;
(2) all local government units using the system; and
(3) other eligible users of the system.
(b) Each local government and other eligible users of
phases three to six of the system shall pay to the commissioner
all sums charged under this section, at the times and in the
manner determined by the commissioner. The governing body of
each local government shall take all action that may be
necessary to provide the funds required for these payments and
to make the payments when due.
(c) If the governing body of any local government using
phase three, four, five, or six of the system fails to meet any
payment to the commissioner under this subdivision when due, the
commissioner may certify to the auditor of the county in which
the government unit is located the amount required for payment
of the amount due with interest at six percent per year. The
auditor shall levy and extend the amount due, with interest, as
a tax upon all taxable property in the government unit for the
next calendar year, free from any existing limitations imposed
by law or charter. This tax shall be collected in the same
manner as the general taxes of the government unit, and the
proceeds of the tax, when collected, shall be paid by the county
treasurer to the commissioner and credited to the government
unit for which the tax was levied.
Sec. 119. Minnesota Statutes 2002, section 473.907,
subdivision 1, is amended to read:
Subdivision 1. [PLANNING COMMITTEE.] (a) The commissioner
of public safety shall convene and chair a planning committee to
develop a project plan for a statewide, shared, trunked public
safety radio communication system.
(b) The planning committee consists of the following
members or their designees:
(1) the commissioner of public safety;
(2) the commissioner of transportation;
(3) the commissioner of administration;
(4) the commissioner of natural resources;
(5) the chair of the metropolitan radio board;
(6) the president of the Minnesota sheriffs' association;
(7) a representative of the league of Minnesota cities from
the metropolitan area; and
(8) a representative of the league of Minnesota cities from
greater Minnesota; and
(9) a representative of the association of Minnesota
counties from greater Minnesota.
Additionally, the commissioner of finance or a designee
shall serve on the committee as a nonvoting member.
(c) The planning committee must implement the project plan
and establish the statewide, shared trunked radio and
communications system. The commissioner of public safety is
designated as the chair of the planning committee. The
commissioner of public safety and the planning committee have
overall responsibility for the successful completion of
statewide communications infrastructure system integration.
(d) The planning committee must establish one or more
advisory groups for the purpose of advising on the plan, design,
implementation and administration of the statewide, shared
trunked radio and communications system. At least one such
group must consist of the following members:
(1) the chair of the metropolitan radio board or a
designee;
(2) the chief of the Minnesota state patrol;
(3) a representative of the Minnesota state sheriffs'
association;
(4) a representative of the Minnesota chiefs of police
association; and
(5) a representative of the Minnesota fire chiefs'
association.
Sec. 120. Minnesota Statutes 2002, section 477A.014,
subdivision 4, is amended to read:
Subd. 4. [COSTS.] The director of the office of strategic
and long-range planning shall annually bill the commissioner of
revenue for one-half of the costs incurred by the state
demographer in the preparation of materials required by section
4A.02. The state auditor shall bill the commissioner of revenue
for the costs of best practices reviews and the services
provided by the government information division and the parts of
the constitutional office that are related to the government
information function, not to exceed $217,000 in fiscal year 1992
and $217,000 in each fiscal year 1993 and thereafter. The
commissioner of administration shall bill the commissioner of
revenue for the costs of the local government records program
and the intergovernmental information systems activity, not to
exceed $201,100 in fiscal year 1992 and $205,800 in each fiscal
year 1993 and thereafter. The commissioner of employee
relations shall bill the commissioner of revenue for the costs
of administering the local government pay equity function, not
to exceed $56,000 in fiscal year 1992 and $55,000 in each fiscal
year 1993 and thereafter.
[EFFECTIVE DATE.] This section is effective July 1, 2004.
Sec. 121. Laws 1998, chapter 366, section 80, as amended
by Laws 2001, First Special Session chapter 10, article 2,
section 86, is amended to read:
Sec. 80. [SETTLEMENT DIVISION; TRANSFER OF JUDGES.]
The office of administrative hearings shall establish a
settlement division. The workers' compensation judges at the
department of labor and industry, together with their support
staff, offices, furnishings, equipment, and supplies, are
transferred to the settlement division of the office of
administrative hearings. Minnesota Statutes, section 15.039,
applies to the transfer of employees. The settlement division
of the office of administrative hearings shall maintain offices
in either Hennepin or Ramsey county and the cities city of
Duluth and Detroit Lakes. The office of a judge in the
settlement division of the office of administrative hearings and
the support staff of the judge may be located in a building that
contains offices of the department of labor and industry. The
seniority of a workers' compensation judge at the office of
administrative hearings, after the transfer, shall be based on
the total length of service as a judge at either agency. For
purposes of the commissioner's plan under Minnesota Statutes,
section 43A.18, subdivision 2, all compensation judges at the
office of administrative hearings shall be considered to be in
the same employment condition, the same organizational unit and
qualified for work in either division.
Sec. 122. [TRANSITION; RETROACTIVE PAYMENT.]
A lobbyist who was registered under Minnesota Statutes,
section 10A.04, subdivision 2, on January 15, 2003, or a
principal who was required to file a report under Minnesota
Statutes, section 10A.04, subdivision 6, by March 15, 2003, must
pay no later than August 1, 2003, a fee in the amount that would
have been required under those sections had the fees imposed by
this act been in effect at those times.
Sec. 123. [REAL ESTATE FILING SURCHARGE.]
All funds collected during the fiscal year ending June 30,
2004, and funds collected in the fiscal year ending June 30,
2003, that carry forward into the fiscal year ending June 30,
2004, pursuant to the additional 50-cent surcharges imposed by
Laws 2001, First Special Session chapter 10, article 2, section
77, and Laws 2002, chapter 365, are appropriated to the
legislative coordinating commission for the real estate task
force established by Laws 2000, chapter 391, for the purposes
set forth in Laws 2001, First Special Session chapter 10,
article 2, sections 98 to 101. $25,000 from those funds are to
be retained by the legislative coordinating commission for the
services described in Laws 2001, First Special Session chapter
10, article 2, section 99.
Sec. 124. [STUDY OF EMERGENCY MEDICAL SERVICES
PREPAREDNESS.]
The department of public safety shall seek grant funding
from federal, state, and private sources. If awarded funds, the
department shall conduct a study of Minnesota's emergency
medical service preparedness and its relationship to the
department's overall homeland security planning. The study must
analyze the coordination of responses to emergencies, financial
stability of the industries involved in providing prehospital
emergency care, effect of primary service area determinations,
availability in response to terroristic activity, and authority
of governmental subdivisions in determining the level of care.
The department shall report its findings to the chairs of the
senate health and family security committee and crime prevention
and public safety committee and the chairs of the house of
representatives health and human services policy committee and
judiciary policy and finance committee by July 1, 2004.
Sec. 125. [TRANSFER OF RESPONSIBILITIES.]
The responsibilities of the commissioner of administration
to provide 911 emergency telecommunications services under
Minnesota Statutes, chapter 403, are transferred to the
commissioner of public safety under Minnesota Statutes, section
15.039. The transfer may be completed in one or more phases as
provided in an agreement between the commissioners of
administration and public safety, but no later than the first
Monday in January 2004.
Sec. 126. [GAMBLING CONTROL; FEE TRANSITION.]
Effective July 1, 2003, all licensees regulated by the
gambling control board must begin paying the applicable fees
under Minnesota Statutes, sections 349.16 to 349.165. The
gambling control board shall provide a onetime, prorated credit
against these fees to licensees who paid for licenses before
July 1, 2003, that were to extend beyond July 1, 2003.
Sec. 127. [CARRYFORWARD.]
Notwithstanding Minnesota Statutes, section 16A.28, or
other law to the contrary, funds encumbered by the judicial or
executive agency for severance costs; unemployment compensation
costs; and health, dental, and life insurance continuation costs
resulting from state employee layoffs during the fiscal year
ending June 30, 2003, may be carried forward and may be spent
until January 1, 2004.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 128. [VACATION LIMIT.]
A state employee in the unclassified service who takes
voluntary unpaid leave of absence during the biennium ending
June 30, 2005, must be allowed to accrue a vacation leave
balance up to at least 300 hours through June 30, 2005.
Sec. 129. [GAMING STUDY.]
If the legislature authorizes the state lottery to operate
a gaming facility in the metropolitan area, the director of the
state lottery shall contract with an independent entity to
perform an analysis of the economic effects of the facility on
existing tribal gaming facilities located in or within 100 miles
of the metropolitan area.
Sec. 130. [VOLUNTARY UNPAID LEAVE OF ABSENCE.]
(a) Appointing authorities in state government may allow
each employee to take unpaid leaves of absence for up to 1,040
hours between June 1, 2003, and June 30, 2005. The 1,040 hour
limit replaces, and is not in addition to, limits set in prior
laws. Each appointing authority approving such a leave shall
allow the employee to continue accruing vacation and sick leave,
be eligible for paid holidays and insurance benefits, accrue
seniority, and accrue service credit and credited salary in the
state retirement plans as if the employee had actually been
employed during the time of leave. An employee covered by the
unclassified plan may voluntarily make the employee
contributions to the unclassified plan during the leave of
absence. If the employee makes these contributions, the
appointing authority must make the employer contribution. If
the leave of absence is for one full pay period or longer, any
holiday pay shall be included in the first payroll warrant after
return from the leave of absence. The appointing authority
shall attempt to grant requests for the unpaid leaves of absence
consistent with the need to continue efficient operation of the
agency. However, each appointing authority shall retain
discretion to grant or refuse to grant requests for leaves of
absence and to schedule and cancel leaves, subject to the
applicable provisions of collective bargaining agreements and
compensation plans.
(b) To receive eligible service credit and credited salary
in a defined benefit plan, the member shall pay an amount equal
to the applicable employee contribution rates. If an employee
pays the employee contribution for the period of the leave under
this section, the appointing authority must pay the employer
contribution. The appointing authority may, at its discretion,
pay the employee contributions. Contributions must be made in a
time and manner prescribed by the executive director of the
Minnesota state retirement association.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 131. [OFFICIAL PUBLICATION STUDY.]
Representatives of local public corporations, as defined in
Minnesota Statutes, chapter 331A, must meet with representatives
of qualified newspapers and report to the legislature by January
15, 2004, on alternative means of official publication for local
public corporations.
Sec. 132. [TRAINING SERVICES.]
During the biennium ending June 30, 2005, state executive
agencies must consider using services provided by the government
training service before contracting with other outside vendors
for similar services.
Sec. 133. [CRIMNET FINANCIAL AUDIT.]
The legislative auditor must complete a financial audit of
all components and expenditures of the group of projects
generally referred to as CriMNet by March 1, 2004. The audit
must include a review of all contracts related to CriMNet for
compliance with state law, including the laws and guidelines
governing the issuance of contracts.
Sec. 134. [FEE SCHEDULE.]
The campaign finance and public disclosure board, in
consultation with lobbyists, political committees, political
funds, principal campaign committees, and party units, shall
develop an equitable schedule of fees to be imposed on them to
recover the costs incurred by the board in regulating them. The
board must submit the recommended fee schedule to the
legislature by January 15, 2004.
Sec. 135. [REVISOR'S INSTRUCTION.]
The revisor of statutes shall renumber each section of
Minnesota Statutes listed in column A with the number listed in
column B. The revisor shall also make necessary cross-reference
changes consistent with the renumbering.
Column A Column B
473.891 403.21
473.893 403.22
473.894 403.23
473.895 403.24
473.896 403.25
473.897 403.26
473.898 403.27
473.899 403.28
473.900 403.29
473.901 403.30
473.902 403.31
473.903 403.32
473.904 403.33
473.905 403.34
473.906 403.35
473.907 403.36
Sec. 136. [REPEALER.]
(a) Minnesota Statutes 2002, sections 3.305, subdivision 5;
3A.11; 4A.055; 6.77; 16A.87; 16E.09; 149A.97, subdivision 8;
163.10; and 306.97, are repealed.
(b) Minnesota Rules, part 1950.1070, is repealed effective
July 1, 2004.
(c) Minnesota Statutes 2002, sections 12.221, subdivision
5; 16B.50; and 16C.07, are repealed effective the day following
final enactment.
(d) Minnesota Statutes 2002, section 3.971, subdivision 8,
is repealed effective July 1, 2004.
ARTICLE 3
ECONOMIC DEVELOPMENT APPROPRIATIONS
Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.]
The sums shown in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or another named fund, to
the agencies and for the purposes specified in this act, to be
available for the fiscal years indicated for each purpose. The
figures "2004" and "2005," where used in this act, mean that the
appropriation or appropriations listed under them are available
for the year ending June 30, 2004, or June 30, 2005,
respectively. The term "first year" means the fiscal year
ending June 30, 2004, and the term "second year" means the
fiscal year ending June 30, 2005.
SUMMARY BY FUND
2004 2005 TOTAL
General $ 31,091,000 $ 30,364,000 $ 61,455,000
Petroleum Tank
Cleanup 1,084,000 1,084,000 2,168,000
Workers'
Compensation 615,000 835,000 1,450,000
TOTAL $ 32,790,000 $ 32,283,000 $ 65,073,000
APPROPRIATIONS
Available for the Year
Ending June 30
2004 2005
Sec. 2. COMMERCE
Subdivision 1. Total
Appropriation $ 25,856,000 $ 25,349,000
Summary by Fund
General 24,157,000 23,430,000
Petroleum
Cleanup 1,084,000 1,084,000
Workers'
Compensation 615,000 835,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Financial
Examinations
5,997,000 5,994,000
Subd. 3. Petroleum Tank Release
Cleanup Board
1,084,000 1,084,000
This appropriation is from the
petroleum tank release cleanup fund.
Subd. 4. Administrative Services
5,518,000 5,518,000
The commissioner of commerce, after
July 1, 2003, and before June 30, 2005,
shall sell the unclaimed property
identified by the legislative auditor
in Finding 1 of the auditor's
management letter dated March 20,
2003. To the degree this property has
not been held for the three-year period
required by law prior to sale, that
three-year requirement is waived as to
this property, and the commissioner
shall sell the property.
Subd. 5. Market Assurance
6,402,000 5,897,000
Summary by Fund
General 5,787,000 5,062,000
Workers' Compensation 615,000 835,000
Subd. 6. Energy and
Telecommunications
4,349,000 4,349,000
After July 1, 2003, but before
September 30, 2003, the commissioner of
finance shall transfer $2,500,000 of
the unexpended balance in the
contractor's recovery fund established
under Minnesota Statutes, section
326.975, subdivision 1, to the general
fund.
Subd. 7. Weights and
Measurement
2,506,000 2,507,000
The fees proposed in the 2004-2005
biennial budget for the weights and
measurement division are approved.
Of the unexpended balance in the
liquefied petroleum gas account
established under Minnesota Statutes,
section 239.785, $500,000 is
transferred to the general fund.
Sec. 3. BOARD OF ACCOUNTANCY 577,000 577,000
Sec. 4. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR
DESIGN 785,000 785,000
Sec. 5. BOARD OF BARBER
EXAMINERS 127,000 127,000
Sec. 6. PUBLIC UTILITIES
COMMISSION 4,163,000 4,163,000
Sec. 7. COUNCIL ON BLACK
MINNESOTANS 282,000 282,000
Sec. 8. COUNCIL ON
CHICANO-LATINO AFFAIRS 275,000 275,000
Sec. 9. COUNCIL ON
ASIAN-PACIFIC MINNESOTANS 243,000 243,000
Sec. 10. INDIAN AFFAIRS
COUNCIL 482,000 482,000
ARTICLE 4
ECONOMIC DEVELOPMENT AND COMMERCE
Section 1. [60A.035] [GOVERNMENT CONTROLLED OR OWNED
COMPANY PROHIBITED FROM TRANSACTING BUSINESS.]
(a) No insurance company the voting control or ownership of
which is held in whole or substantial part by any government or
governmental agency or entity having a tax exemption under
section 501(c)(27)(B) or 115 of the Internal Revenue Code of
1986 or which is operated for or by any such government or
agency or entity having a tax exemption under section
501(c)(27)(B) or 115 of the Internal Revenue Code of 1986 is
authorized to transact insurance in this state. Membership in a
mutual company, subscribership in a reciprocal insurer,
ownership of stock of an insurer by the alien property custodian
or similar official of the United States, or supervision of an
insurer by public insurance supervisory authority is not
considered to be an ownership, control, or operation of the
insurer for the purposes of this section.
(b) This section does not apply to an insurance company if
its sole insurance business in this state is providing workers'
compensation insurance and associated employers' liability
coverage to an employer principally located in the insurer's
state of domicile whose employee may receive benefits under
section 176.041, subdivision 4, provided the operations of the
employer are for fewer than 30 consecutive days in this state
and provided the employer has no other significant contacts with
this state.
(c) This section does not apply to a fund established under
section 16B.85, subdivision 2.
Sec. 2. Laws 2002, chapter 331, section 19, is amended to
read:
Sec. 19. [EFFECTIVE DATE.]
Sections 16 and 17 are effective July 1, 2003 2004.
Sec. 3. [AMBULANCE SERVICE LIABILITY INSURANCE STUDY.]
The commissioner of commerce shall study the availability
and cost to ambulance services of vehicle and malpractice
insurance and the factors influencing cost increases. The
commissioner shall report the results of this study and
recommendations on means to ensure continued availability of
affordable insurance to the legislature by January 10, 2004.
Sec. 4. [REPEALER.]
Minnesota Statutes, sections 155A.03, subdivisions 14 and
15; and 155A.07, subdivision 9, are repealed.
Presented to the governor May 24, 2003
Signed by the governor May 28, 2003, 4:10 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes