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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.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569