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2001 Minnesota Session Laws

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                              CHAPTER 10-S.F.No. 9 
                  An act relating to state government; appropriating 
                  money for the general legislative and administrative 
                  expenses of state government; modifying provisions 
                  relating to state and local government operations; 
                  modifying election, retirement, and pension 
                  provisions; amending Minnesota Statutes 2000, sections 
                  3.3005, subdivisions 2, 3, 3a, 4, 5, by adding 
                  subdivisions; 3.85, subdivision 3; 3.855, subdivision 
                  3; 3.97, subdivision 3a; 3.979, by adding a 
                  subdivision; 3.98, subdivision 2; 3A.03, subdivision 
                  2; 7.09, subdivision 1; 10A.31, subdivision 3a, 7; 
                  11A.18, subdivision 7; 13D.01, subdivision 1; 15.0575, 
                  subdivision 3, as amended; 15.059, subdivision 3, as 
                  amended; 15A.0815, subdivision 1, by adding a 
                  subdivision; 16A.06, by adding a subdivision; 16A.10, 
                  by adding a subdivision; 16A.152, subdivision 7; 
                  16B.25, subdivision 2; 16B.60, subdivision 3, by 
                  adding subdivisions; 16B.61, subdivision 1, as 
                  amended; 16B.65; 16B.70, by adding a subdivision; 
                  16B.88, subdivision 1; 16C.02, by adding a 
                  subdivision; 16C.03, subdivision 2, by adding a 
                  subdivision; 16C.04, by adding a subdivision; 16C.05, 
                  subdivision 2; 16C.06, subdivisions 2, 3; 16C.081; 
                  16C.22; 16E.04, subdivision 2, as amended; 43A.04, by 
                  adding subdivisions; 43A.047; 69.011, subdivision 1; 
                  79.34, subdivision 1; 103C.311, subdivision 1; 
                  136F.07; 136F.40, subdivision 2; 179A.15; 190.06, 
                  subdivision 1; 190.07; 192.501, subdivision 2; 
                  193.144, subdivision 6; 193.145, subdivision 4; 
                  193.148; 197.75, subdivisions 1, 2; 200.02, 
                  subdivisions 7, 23; 201.016, subdivision 1a; 201.022; 
                  202A.19, subdivision 1; 203B.04, subdivisions 1, 5; 
                  203B.06, by adding a subdivision; 203B.07, subdivision 
                  1; 203B.16, subdivision 1; 203B.17, subdivision 1; 
                  204B.06, subdivision 1; 204B.07, subdivision 2; 
                  204B.09, subdivisions 1, 3; 204B.20; 204B.22, 
                  subdivisions 1, 3; 204B.23; 204B.27, by adding a 
                  subdivision; 204B.28, subdivision 1; 204C.03, 
                  subdivision 1; 204C.35; 204C.36, subdivisions 1, 3; 
                  204D.04, subdivision 2; 204D.09; 204D.11, subdivision 
                  4; 204D.24, subdivision 2; 205.13, subdivision 1a; 
                  205.17, by adding a subdivision; 205.185, subdivision 
                  3; 206.81; 211A.02, subdivision 4; 214.09, subdivision 
                  3, as amended; 270A.07, subdivision 1; 317A.123, 
                  subdivision 1; 317A.827, subdivision 2; 349.165, 
                  subdivisions 1, 3; 352.01, subdivisions 2a, 2b, 11; 
                  352.113, subdivisions 4, 6; 352.22, subdivision 8; 
                  352.87, subdivisions 4, 5; 352.95, subdivisions 4, 5, 
                  7; 352B.01, subdivisions 2, 3, 11; 352B.10, 
                  subdivision 3; 352B.101; 353.01, subdivisions 1, 2, 
                  2a, 2b, 6, 7, 11b, 12a, 16, by adding subdivisions; 
                  353.27, subdivisions 2, 3, 4, 11; 353.86, subdivision 
                  1; 354.05, subdivisions 2, 13; 354.41, subdivision 4; 
                  354.52, subdivision 4; 354.534, subdivision 1; 
                  354.536, subdivision 1; 354.539; 354A.011, 
                  subdivisions 4, 24; 354A.098, subdivision 1; 354A.101, 
                  subdivision 1; 354A.106; 354A.12, subdivision 5; 
                  354A.31, subdivision 3; 354A.35, subdivision 4; 
                  356.215, subdivision 4g; 356.24, subdivision 1; 
                  356.55, subdivision 7; 356A.06, subdivision 5; 
                  356A.08, subdivision 1; 357.18, subdivision 3; 358.10; 
                  367.03, subdivision 6; 403.11, subdivision 1; 
                  422A.155; 423B.01, by adding a subdivision; 423B.05, 
                  by adding subdivisions; 424A.04, by adding a 
                  subdivision; 473.13, by adding a subdivision; 490.121, 
                  subdivision 4; 517.08, subdivisions 1b, 1c, as 
                  amended; 574.26, subdivision 2; 645.44, by adding a 
                  subdivision; Laws 1997, chapter 202, article 2, 
                  section 61, as amended; Laws 1998, chapter 366, 
                  section 80; Laws 1999, chapter 250, article 1, section 
                  12, subdivision 3, as amended; Laws 2000, chapter 461, 
                  article 10, section 3; proposing coding for new law in 
                  Minnesota Statutes, chapters 3; 4A; 13; 16A; 16C; 16E; 
                  200; 204B; 211B; 240A; 352; 352F; 353F; 354; 354A; 
                  354B; 356; 383D; 473; proposing coding for new law as 
                  Minnesota Statutes, chapters 116T; 423C; repealing 
                  Minnesota Statutes 2000, sections 16A.67; 16A.6701; 
                  16E.08; 43A.18, subdivision 5; 129D.06; 179A.07, 
                  subdivision 7; 204B.06, subdivision 1a; 204C.15, 
                  subdivision 2a; 246.18, subdivision 7; 354.41, 
                  subdivision 9; 354A.026; Laws 1907, chapter 24; Laws 
                  1913, chapters 318, 419; Laws 1917, chapter 196; Laws 
                  1919, chapters 515, 523; Laws 1921, chapter 404; Laws 
                  1923, chapter 61; Laws 1945, chapter 322; Laws 1959, 
                  chapter 491; Laws 1959, chapter 568, as amended; Laws 
                  1961, chapter 109; Extra Session Laws 1961, chapter 3; 
                  Laws 1963, chapter 318, as amended; Laws 1965, chapter 
                  519, as amended; Laws 1965, chapter 578, as amended; 
                  Laws 1967, chapter 819, as amended; Laws 1967, chapter 
                  824, as amended; Laws 1969, chapter 123, as amended; 
                  Laws 1969, chapter 287; Laws 1971, chapter 542, as 
                  amended; Laws 1975, chapter 57, as amended; Laws 1977, 
                  chapter 164, section 2, as amended; Laws 1980, chapter 
                  607, article XV, sections 8, as amended, 9, as 
                  amended, 10, as amended; Laws 1988, chapter 572, 
                  section 4; Laws 1988, chapter 574, section 3; Laws 
                  1989, chapter 319, article 19, sections 6, as amended, 
                  7, as amended; Laws 1990, chapter 589, article 1, 
                  sections 5, as amended, 6, as amended; Laws 1992, 
                  chapter 429; Laws 1992, chapter 454, section 2, as 
                  amended; Laws 1992, chapter 471, article 2, as 
                  amended; Laws 1993, chapter 125, as amended; Laws 
                  1993, chapter 192, section 32; Laws 1994, chapter 591, 
                  as amended; Laws 1994, chapter 632, article 3, section 
                  14; Laws 1996, chapter 448, article 2, section 3; Laws 
                  1996, chapter 448, article 3, section 1; Laws 1997, 
                  chapter 233, article 4, sections 12, 13, 14, 15, 16, 
                  17, 18, 19, 20, 21, 22; Laws 1998, chapter 390, 
                  article 7, section 2; Laws 2000, chapter 461, article 
                  17, sections 6, 7, 8, 9, 10, 11, 12, 13; Minnesota 
                  Rules, part 8250.1400. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                                 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 "2001," "2002," and "2003," where used in this act, mean 
        that the appropriation or appropriations listed under them are 
        available for the year ending June 30, 2001, June 30, 2002, or 
        June 30, 2003, respectively.  
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2002         2003 
        Sec. 2.  LEGISLATURE 
        Subdivision 1.  Total  
        Appropriation                         67,776,000     68,773,000
                      Summary by Fund
        General              67,626,000    68,623,000
        Health Care Access      150,000       150,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Senate                      24,021,000     22,918,000
        Subd. 3.  House of Representatives    28,035,000     30,318,000
        Subd. 4.  Legislative 
        Coordinating Commission               10,215,000     10,068,000
                      Summary by Fund
        General              10,065,000     9,918,000
        Health Care Access      150,000       150,000
        Effective January 6, 2003, the salaries 
        of other constitutional officers are 
        set at the following percentages of the 
        salary of the governor:  
        attorney general - 95 percent; 
        state auditor - 85 percent; 
        secretary of state - 75 percent; 
        lieutenant governor - 65 percent. 
        The compensation council recommendation 
        of 2001 for legislators and 
        constitutional officers may not take 
        effect. 
        $6,420,000 the first year and 
        $6,535,000 the second year are for the 
        office of the revisor of statutes. 
        $1,242,000 the first year and 
        $1,273,000 the second year are for the 
        legislative reference library. 
        $5,505,000 the first year and 
        $5,469,000 the second year are for the 
        office of the legislative auditor and 
        legislative audit commission. 
        The legislative work group on 
        television coverage consists of two 
        members of the senate appointed by the 
        subcommittee on committees of the 
        committee on rules and administration, 
        two members of the house of 
        representatives appointed by the 
        speaker, and two members representing 
        the Minnesota public television 
        association appointed by the 
        association.  In an effort to take full 
        advantage of the new digital technology 
        and interconnection system to be 
        constructed by public television, the 
        work group must examine the best 
        management structure and distribution 
        format to provide gavel-to-gavel 
        coverage of house and senate sessions 
        and other legislative hearings of 
        public importance.  The group must make 
        specific recommendations regarding the 
        consolidation of television services 
        now being provided by the house and 
        senate, including the advisability and 
        practicality of having that coverage 
        provided by public television.  The 
        group must provide an interim report to 
        the legislature by February 1, 2002, 
        and submit a final report, including 
        budget recommendations, by January 10, 
        2003. 
        The legislative coordinating 
        commission, or a joint subcommittee 
        appointed by the commission for that 
        purpose, must investigate ways in which 
        the public information offices of the 
        senate and the house of representatives 
        might reduce costs and increase public 
        awareness by consolidating some or all 
        of their services, including, at a 
        minimum, the publication of a single 
        schedule for house and senate committee 
        meetings.  The commission must report 
        its findings and recommendations to the 
        legislature by February 1, 2002. 
        During the interim between the 2001 and 
        2002 legislative sessions, legislative 
        appointing authorities may work with 
        the department of employee relations to 
        place legislative staff on temporary 
        assignments in state agencies.  The 
        legislature is responsible for salary 
        and benefits of employees who choose 
        these temporary assignments.  Work 
        assignments and hours must be 
        negotiated by legislative appointing 
        authorities and the state agencies 
        getting interim use of legislative 
        staff.  Refusal of a commissioner to 
        find a suitable work assignment for 
        interested and qualified legislative 
        staff must be reported to the budget 
        committee chairs of the house and 
        senate that have jurisdiction over that 
        agency's budget. 
        Sec. 3.  GOVERNOR AND 
        LIEUTENANT GOVERNOR                    4,601,000      4,714,000
        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. 
        The funds appropriated to the 
        governor's office for maintenance of 
        the governor's residence are 
        transferred to the department of 
        administration for the same purpose. 
        Sec. 4.  STATE AUDITOR                10,051,000     10,297,000
        Sec. 5.  STATE TREASURER               2,351,000      2,331,000
        $1,093,000 the first year and 
        $1,125,000 the second year are for the 
        treasurer to pay for banking services 
        by fees rather than by compensating 
        balances.  
        Sec. 6.  ATTORNEY GENERAL             29,278,000     29,911,000
                      Summary by Fund
        General              26,825,000    27,406,000
        State Government
        Special Revenue       1,834,000     1,876,000
        Environmental           142,000       145,000 
        Solid Waste             477,000       484,000 
        Sec. 7.  SECRETARY OF STATE            7,410,000      7,465,000
        $1,306,000 the first year and 
        $1,054,000 the second year are for 
        uniform commercial code operating costs.
        The base funding for this activity is 
        $914,000 for fiscal year 2004 and 
        $861,000 for fiscal year 2005. 
        Sec. 8.  CAMPAIGN FINANCE AND 
        PUBLIC DISCLOSURE BOARD                  674,000        702,000
        For 2001 - $35,000
        $35,000 in fiscal year 2001 is for the 
        campaign finance and public disclosure 
        board for operating budget deficiencies.
        Sec. 9.  INVESTMENT BOARD              2,477,000      2,535,000
        Sec. 10.  ADMINISTRATIVE HEARINGS      7,444,000      7,941,000
        This appropriation is from the workers' 
        compensation fund. 
        Fee increases proposed for the Office 
        of Administrative Hearings by the 
        governor in the 2002-2003 state 
        government biennial budget document are 
        approved, as well as fee increases 
        necessary as a result of judicial 
        salary increases. 
        Sec. 11.  OFFICE OF STRATEGIC 
        AND LONG-RANGE PLANNING                5,621,000      4,988,000
        $170,000 the first year is to continue 
        the generic environmental impact 
        statement on animal agriculture.  Funds 
        not spent in the first year are 
        available in the second year. 
        $500,000 the first year is for one-time 
        grants of $50,000 each to regional 
        development commissions or, in regions 
        not served by regional development 
        commissions, to regional organizations 
        selected by the director, to support 
        planning work on behalf of local units 
        of government.  The planning work must 
        take into consideration any impacts on 
        private property rights and must 
        include at least one of the following:  
        (1) development of local zoning 
        ordinances; (2) land use plans; (3) 
        community or economic development 
        plans; (4) transportation and transit 
        plans; (5) solid waste management 
        plans; (6) wastewater management plans; 
        (7) workforce development plans; (8) 
        housing development plans and market 
        analyses; (9) rural health service and 
        senior nutrition plans; (10) natural 
        resources management plans; or (11) 
        development of a geographical 
        information systems database to serve a 
        region's needs, including hardware and 
        software purchases and related labor 
        costs.  State grant funds must be 
        matched on a dollar-for-dollar basis by 
        nonstate funds.  
        The office of strategic and long-range 
        planning, in consultation with the 
        department of natural resources and 
        appropriate and affected parties, must 
        prepare urban rivers sustainable 
        development draft guidelines along the 
        central business districts of rivers in 
        urban areas of the state.  The office 
        must: 
        (1) evaluate existing state and 
        municipal laws; 
        (2) evaluate the need for the 
        department of natural resources to have 
        authority to adopt rules to implement 
        the Mississippi river critical area 
        order (executive order 79-19); 
        (3) review federal legislation 
        affecting urban rivers; and 
        (4) identify the technical and 
        administrative procedures to guide 
        urban river development.  The draft 
        guidelines must be made available to 
        the environmental and economic 
        development policy committees of the 
        legislature, and to interested parties, 
        by January 15, 2002. 
        $100,000 the first year is for a grant 
        to support subregional comprehensive 
        planning by the N.M. I-35W Corridor 
        Coalition.  The appropriation is 
        available until June 30, 2003.  The 
        subregional work must include the 
        following components leading to a 
        coordinated subregional comprehensive 
        plan submission to the metropolitan 
        council in 2003:  (1) coordinated land 
        use plans; (2) coordinated economic 
        development and redevelopment 
        strategies focused on redefining 
        metropolitan competitiveness with 
        linkage to creating local job 
        opportunities and integrated housing, 
        transportation, and transit systems; 
        (3) coordinated transportation and 
        transit plans; (4) coordinated 
        workforce development plans; (5) 
        coordinated subregional housing 
        development plans and market analyses 
        ensuring healthy neighborhoods and 
        increased choice in lifecycle housing; 
        (6) coordinated natural resources 
        management plans; (7) expanded GIS 
        database management system focused on 
        improving subregional decision making 
        through access to better data and tools 
        for analysis as well as being 
        exportable to other regional and 
        subregional collaborative efforts; and 
        (8) establishment of a coalition 
        institute structured to utilize livable 
        community principles to address issues 
        of growth and infill, to support 
        standards for quality development, and 
        to create direct benefit for learning 
        experience and sharing with other 
        regional and subregional organizations 
        and agencies.  State grant funds must 
        be matched on a dollar-for-dollar basis 
        from nonstate funds.  Local planning 
        work supported by this appropriation 
        must adhere to the goals of sustainable 
        land use planning under Minnesota 
        Statutes, section 4A.08. 
        The director must create a competition 
        council.  The competition council must 
        make recommendations to the executive 
        and legislative branches on 
        opportunities, strategies, and best 
        practices for competitive delivery of 
        services or goods currently delivered 
        by government.  
        Sec. 12.  ADMINISTRATION 
        Subdivision 1.  Total 
        Appropriation                         67,557,000     46,971,000
        For 2001 - $75,000 
                      Summary by Fund
        General              45,230,000    26,602,000
        For 2001 - $75,000 
        State Government 
        Special Revenue      22,027,000    20,369,000
        Special Revenue         300,000       -0- 
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Operations Management 
             3,632,000      3,745,000
        Subd. 3.  Office of Technology
            13,173,000      3,435,000
                      Summary by Fund
        General              12,299,000     2,830,000
        State Government 
        Special Revenue         574,000       605,000
        Special Revenue         300,000         -0-  
        $300,000 in fiscal year 2002 is from 
        the unemployment insurance technology 
        initiative account in the special 
        revenue fund for a study of the 
        unemployment insurance technology 
        initiative project.  The study should 
        include an analysis of current business 
        processes, identification of 
        re-engineering opportunities, and 
        development of a project plan, and 
        should ensure integration with the 
        state's enterprise architecture.  The 
        study is the joint responsibility of 
        the office of technology and the 
        department of economic security 
        unemployment branch.  The study must be 
        completed no later than June 30, 2002.  
        Upon completion of the study, the 
        department of economic security may 
        begin immediate and independent 
        implementation of the full project plan.
        $9,400,000 is for deposit in the 
        technology enterprise fund.  From this 
        amount, the commissioner may spend up 
        to $864,000 for technology analysts in 
        the office of technology, up to 
        $1,489,000 for small agency 
        infrastructure, up to $5,400,000 for 
        completion of the income tax 
        re-engineering project in the 
        department of revenue, up to $1,200,000 
        for new income tax re-engineering 
        costs, and up to $40,000 for the local 
        area network at the capitol area 
        architectural and planning board. 
        For the fiscal year 2004-2005 biennium, 
        up to $540,000 each year may be added 
        to the base level funding for 
        technology analyst positions. 
        For the fiscal year 2004-2005 biennium, 
        up to a total of $500,000 may be added 
        to the base level funding for the 
        Capitol Area Architectural and Planning 
        Board, the Architecture and Engineering 
        Board, the Campaign Finance and Public 
        Disclosure Board, the Mediation 
        Services Bureau, the Minnesota Racing 
        Commission, the Sentencing Guidelines 
        Commission, the Department of Veterans 
        Affairs, and the Lawful Gambling 
        Control Board. 
        For the fiscal year 2004-2005 biennium, 
        up to $300,000 each year may be added 
        to the base level funding of the 
        Department of Revenue for the 
        operational costs related to the income 
        tax re-engineering project. 
        $1,179,000 from the state government 
        special revenue fund is for a transfer 
        to the board of chiropractic examiners, 
        the board of medical practice, the 
        board of nursing, and the board of 
        social work for the small agency 
        infrastructure project.  This 
        appropriation is available until June 
        30, 2003.  The commissioner shall 
        report on the progress of the small 
        agency infrastructure project to the 
        chairs of the legislative committees 
        responsible for this budget item by 
        January 15, 2002. 
        (a) The commissioner of administration 
        must contract with an entity outside of 
        state government to prepare a 
        supplemental evaluation, risk 
        assessment, and risk mitigation plan 
        for the CriMNet system.  The entity 
        performing this work must not have any 
        other direct or indirect financial 
        interest in the project. 
        (b) Before January 1, 2002, each 
        recipient of an appropriation for the 
        CriMNet system must, in consultation 
        with the commissioner of 
        administration, submit to the entity 
        selected under paragraph (a):  
        (1) a list of objectives the entity 
        expects to achieve with the money 
        appropriated to it; and 
        (2) a list of performance measures that 
        can be used to determine the extent to 
        which these objectives are being met. 
        (c) The evaluation, risk assessment, 
        and risk mitigation plan must 
        separately consider each component of 
        the project, including:  suspense 
        files, the integration backbone, the 
        Minnesota court information system, 
        photo imaging, livescan cardhandler, 
        predatory offender registration, CJDN 
        upgrade, statewide supervision, and 
        county planning and implementation 
        grants.  For each component, the 
        evaluation may also consider: 
        (1) the likelihood that each entity 
        will achieve its objectives within the 
        limits of the money appropriated; and 
        (2) the appropriateness of the 
        performance measures suggested by each 
        entity receiving an appropriation. 
        (d) Work on the evaluation, risk 
        assessment, and risk mitigation plan 
        must begin as soon as practicable but 
        no later than November 15, 2001.  The 
        results of the evaluation, risk 
        assessment, and risk mitigation plan 
        must be reported to the legislature, 
        the commissioner of administration, and 
        the chief justice of the supreme court 
        by March 15, 2002.  The final report 
        must include recommendations on changes 
        or improvements needed for each 
        component of the program and whether or 
        not a component should proceed.  A 
        recommendation not to proceed with a 
        component of the project is only 
        advisory.  Decisions regarding 
        proceeding with project components will 
        be made by the commissioner of public 
        safety in consultation with the policy 
        group. 
        (e) During the biennium ending June 30, 
        2003, Minnesota Statutes, section 
        16E.0465 does not apply to the CriMNet 
        system. 
        $468,000 the first year and $468,000 
        the second year are for ongoing costs 
        of the North Star II project under 
        Minnesota Statutes, section 16E.07. 
        $120,000 from the general fund is for 
        the Minnesota high technology 
        foundation for the Minnesota computers 
        for schools program.  The foundation 
        must provide a match of $1 of private 
        funds for every $1 of state funds 
        appropriated for the Minnesota 
        computers for schools program. 
        The office must establish the state 
        information architecture under 
        Minnesota Statutes, section 16E.04, 
        subdivision 2, by March 1, 2002. 
        Subd. 4.  Intertechnologies Group
            22,312,000     20,623,000
                      Summary by Fund
        General                 859,000       859,000
        State Government 
        Special Revenue      21,453,000    19,764,000
        $3,988,000 in fiscal year 2002 is from 
        the 911 fund under Minnesota Statutes, 
        section 403.11, for increased costs 
        associated with wireless-enhanced 911 
        and for reimbursements to providers for 
        prior period services not yet certified 
        by the public utilities commission. 
        The appropriation from the special 
        revenue fund is for recurring costs of 
        911 emergency telephone service. 
        Subd. 5.  Facilities Management
             11,689,000    11,929,000
        For 2001 - $75,000 
        $7,584,000 the first year and 
        $7,844,000 the second year are for 
        office space costs of the legislature 
        and veterans organizations, for 
        ceremonial space, and for statutorily 
        free space. 
        $2,000,000 of the balance in the state 
        building code account in the state 
        government special revenue fund as of 
        July 1, 2001, is canceled to the 
        general fund. 
        The unexpended balance in the parking 
        surcharge account in the state 
        government special revenue fund as of 
        July 1, 2001, is canceled to the 
        general fund. 
        A joint house-senate task force must be 
        appointed to study the allocation of 
        spaces in the State Office Building 
        parking ramp.  Members of the task 
        force must include a representative of 
        the house majority, the house minority, 
        the senate majority, the senate 
        minority, the legislative coordinating 
        commission, the legislative reference 
        library, the revisor's office, and the 
        secretary of state.  A report must be 
        presented to the chairs and lead 
        minority members of the house and 
        senate state government operations 
        committees, by October 15, 2001.  In 
        developing the report, the task force 
        must examine the issues of proportional 
        representation based on full-time staff 
        housed in the State Office Building, 
        safety, fringe benefits, recruitment 
        needs, and staff seniority, and may 
        consider other appropriate issues.  The 
        report must include a transition plan 
        for any recommended changes, and may 
        include recommendations regarding the 
        creation of additional secure parking 
        spaces. 
        The commissioner of administration and 
        the capitol area architectural and 
        planning board must investigate the 
        possibility and advisability of 
        locating a bookshop or giftshop in the 
        capitol and must report their findings 
        and recommendations to the legislature 
        by February 1, 2002. 
        $75,000 in fiscal year 2001 and 
        $125,000 in fiscal year 2002 are for 
        pursuing litigation to recover costs 
        associated with indoor air quality 
        issues at the Luverne veterans home. 
        Subd. 6.  Management Services
             3,684,000      3,907,000 
        $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. 
        The management analysis division, in 
        consultation with the Minnesota Amateur 
        Sports Commission, must report to the 
        legislature by January 15, 2002, a plan 
        for the commission to operate without a 
        state subsidy, beginning July 1, 2003.  
        The plan must describe:  (1) new 
        revenues the commission would obtain to 
        replace state subsidies; or (2) plans 
        for cost reductions so that anticipated 
        revenues would equal expenditures, 
        without state subsidies. 
        The management analysis division shall 
        conduct a study to assess the 
        feasibility of collecting fees for 
        services provided by the office of the 
        state archaeologist.  The management 
        analysis division shall submit a report 
        to the chair of the senate state 
        government, economic development and 
        the judiciary budget division and the 
        chair of the house of representatives 
        state government finance committees by 
        July 15, 2002. 
        $200,000 the first year and $100,000 
        the second year are for the STAR 
        program.  This is a one-time 
        appropriation.  
        Subd. 7.  Fiscal Agent
             1,937,000          2,000
        $35,000 the first year is for a grant 
        to the Longville city hall district to 
        complete construction of the Longville 
        city hall ambulance building. * (The 
        preceding text beginning "$35,000 the 
        first year" was indicated as vetoed by 
        the governor.) 
        $2,000 the first year and $2,000 the 
        second year are for the state 
        employees' band. 
        $1,900,000 the first year is for 
        deposit in the voting equipment grant 
        account. 
        Subd. 8.  Public Broadcasting
             11,130,000     3,330,000
        $1,450,000 the first year and 
        $1,450,000 the second year are for 
        matching grants for public television.  
        $600,000 the first year and $600,000 
        the second year are for public 
        television equipment grants.  
        $7,800,000 the first year is for grants 
        to noncommercial television stations to 
        assist with conversion to a digital 
        broadcast signal as mandated by the 
        federal government.  In order to 
        qualify for a grant, a station must 
        meet the criteria established for 
        grants in Minnesota Statutes, section 
        129D.12, subdivision 2. 
        Grants for the conversion to digital 
        television must not be distributed 
        except as agreed to in writing by the 
        commissioner of administration and the 
        Minnesota Public Television 
        Association.  The agreement must 
        include provisions specifying uses of 
        digital broadcast capability to serve 
        needs of state and local units of 
        government in a manner consistent with 
        project management analyses of the 
        Minnesota office of technology and, to 
        the greatest extent feasible, 
        integrating digital broadcast 
        infrastructure and use of spectrum with 
        existing and prospective statewide 
        information and communications 
        networks.  The agreement must be made 
        by January 15, 2002, or this 
        appropriation cancels. 
        To avoid duplication, a station using 
        money from this appropriation to 
        construct a tower must consult with 
        public radio stations in its area to 
        determine if they have a similar need.  
        If a public radio station has a similar 
        need, a cost benefit analysis must be 
        completed to determine if it is more 
        economically feasible to jointly 
        construct the new tower.  All parties 
        must share in the cost of construction 
        and maintenance of the tower. 
        Equipment or digital conversion grant 
        allocations shall be made after 
        considering the recommendations of the 
        Minnesota public television association.
        $441,000 the first year and $441,000 
        the second year are for grants and for 
        contracts with the senate and house of 
        representatives 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. 
        $25,000 the first year and $25,000 the 
        second year are for grants to the Twin 
        Cities regional cable channel. 
        $320,000 the first year and $320,000 
        the second year are for community 
        service grants to public educational 
        radio stations. 
        $87,000 the first year and $87,000 the 
        second year are for equipment 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. 
        $407,000 the first year and $407,000 
        the second year are for equipment 
        grants to Minnesota Public Radio, Inc. 
        If an appropriation for either year for 
        grants to public television or radio 
        stations is not sufficient, the 
        appropriation for the other year is 
        available for it. 
        Subd. 9.  Minneapolis-Guthrie 
        Theater
        The appropriation in Laws 2000, chapter 
        492, article 1, section 14, subdivision 
        3, may be used to predesign and begin 
        design of a new Guthrie Theater and 
        need not be used to acquire and prepare 
        a site for the theater nor to 
        construct, furnish, and equip it. * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Sec. 13.  CAPITOL AREA ARCHITECTURAL 
        AND PLANNING BOARD                       315,000        323,000
        During the biennium ending June 30, 
        2003, money received by the board from 
        public agencies, as provided by 
        Minnesota Statutes, section 15.50, 
        subdivision 3, is appropriated to the 
        board. 
        Sec. 14.  FINANCE 
        Subdivision 1.  Total 
        Appropriation                         18,250,000     18,639,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  State Financial Management 
             8,443,000      8,548,000
        Subd. 3.  Information and 
        Management Services 
             9,807,000     10,091,000
        The commissioners of finance and 
        administration shall study building 
        projects authorized for state 
        agencies.  The study shall include an 
        estimate of any change in operating 
        costs to agencies related to the 
        construction or major renovation of 
        facilities that have been authorized 
        since 1996.  The analysis may consider 
        a representative sample of projects and 
        must measure actual cost increases due 
        solely to building operations.  The 
        study shall also contain a comparison 
        of the cash flows of the projects 
        estimated by agencies at the time 
        projects were proposed to the 
        legislature and the actual cash flows 
        of the projects.  The commissioners 
        shall consult with the finance chair in 
        the senate and the ways and means chair 
        in the house on the methodology used in 
        the analysis and submit a final report 
        to the chairs by January 15, 2002.  The 
        commissioner of finance shall use the 
        results of the analysis of increased 
        operating costs in any planning budget 
        included under Minnesota Statutes, 
        section 16A.103. 
        Sec. 15.  EMPLOYEE RELATIONS 
        Subdivision 1.  Total 
        Appropriation                          8,245,000      8,470,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Employee Insurance
                70,000         70,000
        Subd. 3.  Human Resources Management
             8,175,000      8,400,000
        $25,000 the first year and $25,000 the 
        second year are for a grant to the 
        government training service. 
        $50,000 each year is for the training 
        and development resource center. 
        Sec. 16.  REVENUE 
        Subdivision 1.  Total  
        Appropriation                         95,259,000     96,549,000
                      Summary by Fund
        General              91,030,000    92,238,000
        Health Care Access    1,731,000     1,764,000
        Highway User 
        Tax Distribution      2,191,000     2,237,000
        Environmental           107,000       110,000
        Solid Waste             200,000       200,000 
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Tax System Management
            84,420,000     85,728,000
                      Summary by Fund
        General              80,244,000    81,470,000
        Health Care Access    1,678,000     1,711,000
        Highway User 
        Tax Distribution      2,191,000     2,237,000
        Environmental           107,000       110,000
        Solid Waste             200,000       200,000 
        (a) $1,037,000 the first year and 
        $624,000 the second year is for an 
        initiative 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 $20,000,000 for the 
        biennium ending June 30, 2003. 
        (b) $1,783,000 the first year and 
        $1,570,000 the second year is for an 
        initiative to increase audit and 
        collection activity in the income tax, 
        sales tax, and corporate tax areas.  
        This initiative is expected to result 
        in new general fund revenues of 
        $32,000,000 for the biennium ending 
        June 30, 2003. 
        (c) The department must report to the 
        chairs of the House Ways and Means and 
        Senate Finance Committees by January 
        15, 2002, and January 15, 2003, on the 
        following performance indicators: 
        (1) The number of debt cases referred 
        each year to the Internal Revenue 
        Service for recapture of Minnesota 
        state taxes from federal tax refunds 
        and the associated dollar amounts. 
        (2) The number of nonfiling 
        corporations brought into the corporate 
        tax system each year and the percentage 
        and dollar amounts of valid tax 
        liabilities collected. 
        (3) The number of nonfiling businesses 
        brought into the sales and use tax 
        system and the percentage and dollar 
        amounts of the valid tax liabilities 
        collected. 
        (4) The number of individual nonfiler 
        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, 2001.  The 
        information must be provided at the 
        budget activity level. 
        (d) Of the amounts appropriated in 
        paragraphs (a) and (b), the necessary 
        amount is transferred from the 
        commissioner of revenue to the 
        legislative auditor, not to exceed 
        $50,000, for an audit of the tax 
        collection activities.  The purpose of 
        this audit is to compare actual revenue 
        collections with the estimates of new 
        revenue collections submitted by the 
        department to the 2001 legislature.  
        The legislative auditor shall report 
        the findings of the audit to the 
        legislature by February 1, 2003. 
        Subd. 3.  Accounts Receivable Management
            10,839,000     10,821,000
                      Summary by Fund
        General              10,786,000    10,768,000
        Health Care Access       53,000        53,000
        (a) $275,000 the first year and 
        $257,000 the second year are for an 
        initiative to identify and collect tax 
        liabilities from individuals and 
        businesses that currently do not pay 
        all taxes owed. 
        (b) $1,100,000 the first year and 
        $1,026,000 the second year are for an 
        initiative to increase audit and 
        collection activity in the income tax, 
        sales tax, and corporate tax areas. 
        Sec. 17.  MILITARY AFFAIRS  
        Subdivision 1.  Total 
        Appropriation                         14,121,000    14,021,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        In fiscal year 2001, $186,000 in 
        general funds is transferred from Laws 
        1999, chapter 250, article 1, section 
        28, to the department of military 
        affairs to pay for higher than 
        anticipated fuel costs of the 
        department's training and community 
        center facilities.  These funds are 
        available until December 21, 2001. 
        Subd. 2.  Maintenance of Training 
        Facilities 
              7,141,000      7,244,000 
        Subd. 3.  General Support
              2,049,000      1,845,000 
        $75,000 the first year is to assist in 
        the operation and staffing of the 
        Minnesota national guard youth camp at 
        Camp Ripley.  This appropriation is 
        available until June 30, 2003, and is 
        contingent on its being matched by 
        money from other sources. 
        The department may not sell or lease 
        land in Ramsey county to the department 
        of transportation, nor may the 
        department locate a joint or shared 
        facility with the department of 
        transportation within the county. 
        Subd. 4.  Enlistment Incentives
              4,856,000      4,857,000 
        $4,856,000 the first year and 
        $4,857,000 the second is for enlistment 
        incentives. 
        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. 
        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. 18.  VETERANS AFFAIRS             4,419,000      4,484,000
        Sec. 19.  VETERANS OF FOREIGN 
        WARS                                      55,000         55,000
        For carrying out the provisions of Laws 
        1945, chapter 455. 
        Sec. 20.  MILITARY ORDER OF 
        THE PURPLE HEART                          20,000         20,000
        Sec. 21.  DISABLED AMERICAN VETERANS      13,000         13,000
        For carrying out the provisions of Laws 
        1941, chapter 425. 
        Sec. 22.  GAMBLING CONTROL             2,419,000      2,522,000
        Sec. 23.  RACING COMMISSION              414,000        426,000
        Sec. 24.  BOARD OF THE ARTS        
        Subdivision 1.  Total             
        Appropriation                         13,118,000     13,142,000
        Any unencumbered balance remaining in 
        this section the first year does not 
        cancel but is available for the second 
        year of the biennium. 
        Subd. 2.  Operations and Services
              1,043,000      1,067,000 
        By January 15, 2002, the board must 
        report to the legislature the following 
        information for each group funded by 
        the board in fiscal year 2001 which had 
        annual operating expenses of $500,000 
        or more: 
        (1) the number of audience members 
        attending events produced or sponsored 
        by each arts organization and the type 
        of services provided; 
        (2) services that the group would not 
        have provided but for the state 
        funding; 
        (3) the effect of the state funding on 
        the quality of the service or artistic 
        experience provided to the public; and 
        (4) the amount of funding the group has 
        received from the board each year since 
        creation of the board. 
        Subd. 3.  Grants Program 
              8,540,000      8,540,000 
        Subd. 4.  Regional Arts Councils 
              3,535,000      3,535,000 
        Sec. 25.  MINNESOTA HUMANITIES 
        COMMISSION                             1,022,000      1,036,000
        Any unencumbered balance remaining in 
        the first year does not cancel but is 
        available for the second year of the 
        biennium. 
        The humanities commission must develop 
        a plan for the selection of a Minnesota 
        poet laureate.  The commission must 
        report the plan to the legislature by 
        February 1, 2002. 
        Sec. 26.  TORT CLAIMS                    275,000        275,000
        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. 27.  MINNESOTA STATE   
        RETIREMENT SYSTEM                      9,299,000      9,856,000
        The amounts estimated to be needed for 
        each program are as follows: 
        (a) Legislators 
             6,821,000      7,230,000
        Under Minnesota Statutes, sections 
        3A.03, subdivision 2; 3A.04, 
        subdivisions 3 and 4; and 3A.11. 
        (b) Constitutional Officers 
               355,000        376,000
        Under Minnesota Statutes, sections 
        352C.031, subdivision 5; 352C.04, 
        subdivision 3; and 352C.09, subdivision 
        2. 
        (c) Judges
             2,123,000      2,250,000 
        If an appropriation in this section for 
        either year is insufficient, the 
        appropriation for the other year is 
        available for it. 
        Sec. 28.  MINNEAPOLIS EMPLOYEES
        RETIREMENT FUND                        3,232,000      3,232,000 
        Sec. 29.  POLICE AND FIRE   
        AMORTIZATION AID                       6,345,000      6,345,000
        $4,925,000 the first year and 
        $4,925,000 the second year are to the 
        commissioner of revenue for state aid 
        to amortize the unfunded liability of 
        local police and salaried firefighters 
        relief associations under Minnesota 
        Statutes, section 423A.02. 
        $1,000,000 the first year and 
        $1,000,000 the second year are to the 
        commissioner of revenue for 
        supplemental state aid to amortize the 
        unfunded liability of local police and 
        salaried firefighters relief 
        associations under Minnesota Statutes, 
        section 423A.02, subdivision 1a. 
        $420,000 the first year and $420,000 
        the second year are to the commissioner 
        of revenue to pay reimbursements to 
        relief associations for firefighter 
        supplemental benefits paid under 
        Minnesota Statutes, section 424A.10. 
        Sec. 30.  BOARD OF GOVERNMENT 
        INNOVATION AND COOPERATION               512,000        518,000
        Sec. 31.  STATE LOTTERY                  750,000          -0-   
        $750,000 is from the lottery prize fund 
        to the commissioner of human services 
        for a grant to reconstruct Project 
        Turnabout in Granite Falls destroyed by 
        the Granite Falls tornado.  This 
        appropriation is available until June 
        30, 2003, and does not become part of 
        the base. 
        Sec. 32.  AMATEUR SPORTS
        COMMISSION                             1,257,000        677,000 
        $475,000 the first year is for making 
        matching grants for after school 
        enrichment grants as provided under 
        Minnesota Statutes, section 240A.12. * 
        (The preceding text beginning "$475,000 
        the first year" was indicated as vetoed 
        by the governor.) 
        $25,000 is for a grant to the Range 
        Recreation Civic Center for bleacher 
        purchase. * (The preceding text 
        beginning "$25,000 is for a grant" was 
        indicated as vetoed by the governor.) 
        $100,000 in fiscal year 2002 is for a 
        one-time grant to a nonprofit 
        corporation for operation of a shooting 
        sports program at a state-owned 
        facility.  The program funded through 
        this grant must be designed to train 
        participants and coaches in shooting 
        sports that are Olympic events.  This 
        appropriation is available until June 
        30, 2003. * (The preceding text 
        beginning "$100,000 in fiscal year 
        2002" was indicated as vetoed by the 
        governor.) 
        Sec. 33.  GENERAL CONTINGENT 
        ACCOUNTS                               3,500,000      3,500,000
                      Summary by Fund
        General               3,000,000     3,000,000
        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.  
        The special revenue appropriation is 
        available to be transferred to the 
        attorney general when the costs to 
        provide legal services to the health 
        boards exceed the biennial 
        appropriation to the attorney general 
        from the special revenue fund and for 
        transfer to the health boards if 
        required for unforeseen expenditures of 
        an emergency nature.  The boards 
        receiving the additional services or 
        supplemental appropriations shall set 
        their fees to cover the costs. 
           Sec. 34.  [EFFECTIVE DATE.] 
           The appropriations for fiscal year 2001 are effective the 
        day following final enactment and are available until December 
        31, 2001.  All other appropriations are effective July 1, 2001. 

                                   ARTICLE 2 
                          STATE GOVERNMENT OPERATIONS 
           Section 1.  Minnesota Statutes 2000, section 3.3005, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GOVERNOR'S REQUEST TO LEGISLATURE.] A state 
        agency shall not expend money received by it under federal law 
        for any purpose unless a request to spend federal money from 
        that source for that purpose in that fiscal year has been 
        submitted by the governor to the legislature as a part of a 
        budget request submitted during or within ten days before the 
        start of a regular legislative session, or unless specifically 
        authorized by law or as provided by this section.  A budget 
        request submitted to the legislature according to this 
        subdivision must be submitted at least 20 days before the 
        deadline set by the legislature for legislative budget 
        committees to act on finance bills.  
           Sec. 2.  Minnesota Statutes 2000, section 3.3005, 
        subdivision 3, is amended to read: 
           Subd. 3.  [STATE MATCH.] If a request to spend federal 
        money is included in the governor's budget or spending the money 
        is authorized by law but the amount of federal money received 
        requires a state match greater than that included in the budget 
        request or authorized by law, the amount that requires an 
        additional state match may be allotted for expenditure after the 
        requirements of subdivision 5 or 6 are met. 
           Sec. 3.  Minnesota Statutes 2000, section 3.3005, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [CHANGE IN PURPOSE.] If a request to spend 
        federal money is included in a governor's budget request and 
        approved according to subdivision 2a, but the purpose for which 
        the money is to be used changes from the time of the request and 
        approval, the amount may be allotted for expenditure after a 
        revised request is submitted according to subdivision 2 or the 
        requirements of subdivision 5 or 6 are met. 
           Sec. 4.  Minnesota Statutes 2000, section 3.3005, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [INCREASE IN AMOUNT.] If a request to spend 
        federal money is included in a governor's budget request and 
        approved according to subdivision 2 or 5 and the amount of money 
        available increases after the request is made and authorized, 
        the additional amount may be allotted for expenditure after a 
        revised request is submitted according to subdivision 2, or the 
        requirements of subdivision 5 or 6 are met. 
           Sec. 5.  Minnesota Statutes 2000, section 3.3005, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INTERIM PROCEDURES; URGENCIES.] If federal money 
        becomes available to the state for expenditure after the 
        deadline in subdivision 2 or while the legislature is not in 
        session, and the availability of money from that source or for 
        that purpose or in that fiscal year could not reasonably have 
        been anticipated and included in the governor's budget request, 
        and an urgency requires that all or part of the money be 
        allotted before the legislature reconvenes or prior to the end 
        of the 20-day period specified in subdivision 2, it may be 
        allotted to a state agency after the requirements of subdivision 
        5 are met. 
           Sec. 6.  Minnesota Statutes 2000, section 3.3005, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LEGISLATIVE ADVISORY COMMISSION REVIEW.] Federal 
        money that becomes available under subdivisions subdivision 3 
        and, 3a, 3b, or 4 may be allotted after the commissioner of 
        finance has submitted the request to the members of the 
        legislative advisory commission for their review and 
        recommendation for further review.  If a recommendation is not 
        made within ten days, no further review by the legislative 
        advisory commission is required, and the commissioner shall 
        approve or disapprove the request.  If a recommendation by any 
        member is for further review the governor shall submit the 
        request to the legislative advisory commission for its review 
        and recommendation.  Failure or refusal of the commission to 
        make a recommendation promptly is a negative recommendation.  
           Sec. 7.  Minnesota Statutes 2000, section 3.3005, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [INTERIM PROCEDURES; NONURGENCIES.] If federal 
        money becomes available to the state for expenditure after the 
        deadline in subdivision 2 or while the legislature is not in 
        session, and subdivision 4 does not apply, a request to expend 
        the federal money may be submitted by the commissioner of 
        finance to members of the legislative advisory commission for 
        their review and recommendation.  This request must be submitted 
        by October 1 of any year.  If any member of the commission makes 
        a negative recommendation or a recommendation for further review 
        on a request by October 20 of the same year, the commissioner 
        shall not approve expenditure of that federal money.  If a 
        request to expend federal money submitted under this subdivision 
        receives a negative recommendation or a recommendation for 
        further review, the request may be submitted again under 
        subdivision 2.  If the members of the commission make a positive 
        recommendation or no recommendation, the commissioner shall 
        approve or disapprove the request and the federal money may be 
        allotted for expenditure.  
           Sec. 8.  Minnesota Statutes 2000, section 3.85, subdivision 
        3, is amended to read: 
           Subd. 3.  [MEMBERSHIP.] The commission consists of five 
        members of the senate appointed by the subcommittee on 
        committees of the committee on rules and administration and five 
        members of the house of representatives appointed by the 
        speaker.  Members shall be appointed at the commencement of each 
        regular session of the legislature for a two-year term beginning 
        January 16 of the first year of the regular session.  Members 
        continue to serve until their successors are appointed.  
        Vacancies that occur while the legislature is in session shall 
        be filled like regular appointments.  If the legislature is not 
        in session, senate vacancies shall be filled by the last 
        subcommittee on committees of the senate committee on rules and 
        administration or other appointing authority designated by the 
        senate rules, and house vacancies shall be filled by the last 
        speaker of the house, or if the speaker is not available, by the 
        last chair of the house rules committee. 
           Sec. 9.  Minnesota Statutes 2000, section 3.855, 
        subdivision 3, is amended to read: 
           Subd. 3.  [OTHER SALARIES AND COMPENSATION PLANS.] The 
        commission shall also: 
           (1) review and approve, reject, or modify a plan for 
        compensation and terms and conditions of employment prepared and 
        submitted by the commissioner of employee relations under 
        section 43A.18, subdivision 2, covering all state employees who 
        are not represented by an exclusive bargaining representative 
        and whose compensation is not provided for by chapter 43A or 
        other law; 
           (2) review and approve, reject, or modify a plan for total 
        compensation and terms and conditions of employment for 
        employees in positions identified as being managerial under 
        section 43A.18, subdivision 3, whose salaries and benefits are 
        not otherwise provided for in law or other plans established 
        under chapter 43A; 
           (3) review and approve, reject, or modify recommendations 
        for salaries submitted by the governor or other appointing 
        authority under section 43A.18 15A.0815, subdivision 5, covering 
        agency head positions listed in section 15A.0815; 
           (4) review and approve, reject, or modify recommendations 
        for salaries of officials of higher education systems under 
        section 15A.081, subdivision subdivisions 7b and 7c; and 
           (5) review and approve, reject, or modify plans for 
        compensation, terms, and conditions of employment proposed under 
        section 43A.18, subdivisions 3a and 4. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 10.  Minnesota Statutes 2000, section 3.97, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [EVALUATION TOPICS.] (a) The commission shall 
        periodically select topics for the legislative auditor to 
        evaluate.  Topics may include any agency, program, or activity 
        established by law to achieve a state purpose, or any topic that 
        affects the operation of state government, but the commission 
        shall give primary consideration to topics that are likely, upon 
        examination, to produce recommendations for cost savings, 
        increased productivity, or the elimination of duplication among 
        public agencies.  Legislators and legislative committees may 
        suggest topics for evaluation, but the legislative auditor shall 
        only conduct evaluations approved by the commission. 
           (b) The commission is requested to direct the auditor, in 
        response to a suggestion from an individual legislator of an 
        evaluation topic, to estimate the scope of the proposed 
        evaluation and the time required to complete it.  The estimate 
        must be reported to the legislator who submitted the suggestion 
        and to the commission.  The commission must determine within 60 
        days of receiving the estimate whether to proceed with the 
        suggested evaluation and must convey its decision to the 
        legislator along with the reasons for its decision. 
           Sec. 11.  Minnesota Statutes 2000, section 3.979, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [COMMISSIONER'S OPINION; LEGISLATIVE AUDITOR 
        ACCESS TO DATA.] If, after the commissioner of administration 
        issues an opinion under section 13.072 that a person requesting 
        access to data held by a state agency is entitled to that 
        access, the state agency continues to refuse to provide the data 
        or the person making the request is told that the data sought 
        does not exist, the legislative audit commission may instruct 
        the legislative auditor to review all state agency data related 
        to the request.  Following the review, the legislative auditor 
        shall provide all public data obtained, if any, to the 
        legislative audit commission. 
           [EFFECTIVE DATE.] This section is effective July 1, 2001, 
        and applies to commissioner's opinions issued after that date. 
           Sec. 12.  Minnesota Statutes 2000, section 3.98, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTENTS.] (a) The fiscal note, where possible, 
        shall: 
           (1) cite the effect in dollar amounts; 
           (2) cite the statutory provisions affected; 
           (3) estimate the increase or decrease in revenues or 
        expenditures; 
           (4) include the costs which may be absorbed without 
        additional funds; and 
           (5) include the assumptions used in determining the cost 
        estimates; and 
           (6) specify any long-range implication. 
           (b) The fiscal note may comment on technical or mechanical 
        defects in the bill but shall express no opinions concerning the 
        merits of the proposal. 
           Sec. 13.  [3.8841] [LEGISLATIVE COMMISSION ON METROPOLITAN 
        GOVERNMENT.] 
           Subdivision 1.  [ESTABLISHED.] The legislative commission 
        on metropolitan government is established to oversee the 
        metropolitan council's operating and capital budgets, work 
        program, and capital improvement program. 
           Subd. 2.  [MEMBERSHIP.] The commission consists of four 
        senators appointed by the senate subcommittee on committees of 
        the committee on rules and administration, three senators 
        appointed by the senate minority leader, four state 
        representatives appointed by the speaker of the house, and three 
        state representatives appointed by the house minority leader. 
        All members must reside in or represent a portion of the 
        seven-county metropolitan area.  The appointing authorities must 
        ensure balanced geographic representation.  Each appointing 
        authority must make appointments as soon as possible after the 
        opening of the next regular session of the legislature in each 
        odd-numbered year. 
           Subd. 3.  [TERMS; VACANCIES.] Members of the commission 
        serve for a two-year term beginning upon appointment and 
        expiring upon appointment of a successor after the opening of 
        the next regular session of the legislature in the odd-numbered 
        year.  A vacancy in the membership of the commission must be 
        filled for the unexpired term in a manner that will preserve the 
        representation established by this section. 
           Subd. 4.  [CHAIR.] The commission must meet as soon as 
        practicable after members are appointed in each odd-numbered 
        year to elect its chair and other officers as it may determine 
        necessary.  A chair serves a two-year term, expiring in the 
        odd-numbered year after a successor is elected.  The chair must 
        alternate biennially between the senate and the house. 
           Subd. 5.  [COMPENSATION.] Members serve without 
        compensation but may be reimbursed for their reasonable expenses 
        as members of the legislature. 
           Subd. 6.  [STAFF.] Legislative staff must provide 
        administrative and research assistance to the commission. 
           Subd. 7.  [MEETINGS; PROCEDURES.] The commission meets at 
        the call of the chair.  If there is a quorum, the commission may 
        take action by a simple majority vote of commission members 
        present. 
           Subd. 8.  [POWERS; DUTIES; METROPOLITAN COUNCIL LEVY, 
        BUDGET OVERSIGHT.] The commission must monitor, review, and make 
        recommendations to the metropolitan council and to the 
        legislature for the following calendar year on: 
           (1) the tax rate and dollar amount of the metropolitan 
        council's property tax levies and any proposed increases in the 
        rate or dollar amount of tax; 
           (2) any request for an increase in the debt of the 
        metropolitan council; 
           (3) the overall work and role of the metropolitan council; 
           (4) the metropolitan council's proposed operating and 
        capital budgets, work program, and capital improvement program; 
        and 
           (5) the metropolitan council's implementation of the 
        operating and capital budgets, work program, and capital 
        improvement program. 
           Subd. 9.  [POWERS; DUTIES; METROPOLITAN COUNCIL 
        APPOINTMENTS OVERSIGHT.] The commission must monitor 
        appointments to the metropolitan council and may make 
        recommendations on appointments to the nominating committee 
        under section 473.123, subdivision 3, or to the governor before 
        the governor makes the appointments.  The commission may also 
        make recommendations to the senate before appointments are 
        presented to the senate for its advice and consent. 
           Sec. 14.  [4A.055] [COMMISSION ON THE ECONOMIC STATUS OF 
        WOMEN.] 
           The director must provide staff, office space, and 
        administrative support for the commission on the economic status 
        of women. 
           Sec. 15.  Minnesota Statutes 2000, section 7.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROCEDURE.] The state treasurer is 
        authorized to receive and accept, on behalf of the state, any 
        gift, bequest, devise, or endowment which may be made by any 
        person, by will, deed, gift, or otherwise, to or for the benefit 
        of the state, or any of its departments or agencies, or to or in 
        aid, or for the benefit, support, or maintenance of any 
        educational, charitable, or other institution maintained in 
        whole or in part by the state, or for the benefit of students, 
        employees, or inmates thereof, or for any proper state purpose 
        or function, and the money, property, or funds constituting such 
        gift, bequest, devise, or endowment.  No such gift, bequest, 
        devise, or endowment whose value is equal to or exceeds $10,000 
        shall be so accepted unless the commissioner of finance and the 
        state treasurer determine determines that it is for the interest 
        of the state to accept it, and approve of and direct the 
        acceptance.  If the value is less than $10,000, only the state 
        treasurer need determine that it is for the interest of the 
        state to accept it, and approve of and direct the 
        acceptance.  If a gift, bequest, devise, or endowment is money 
        or other negotiable instruments, then the deposit of it does not 
        constitute acceptance.  In the event that the money or other 
        negotiable instruments are deposited but not approved, the 
        amount deposited must be refunded.  When, in order to effect the 
        purpose for which any gift, bequest, devise, or endowment has 
        been accepted, it is necessary to sell property so received, the 
        state treasurer, upon request of the authority in charge of the 
        agency, department, or institution concerned, may sell it at a 
        price which shall be fixed by the state board of investment. 
           Sec. 16.  Minnesota Statutes 2000, section 15.0575, 
        subdivision 3, as amended by Laws 2001, chapter 61, section 1, 
        is amended to read: 
           Subd. 3.  [COMPENSATION.] (a) Members of the boards may be 
        compensated at the rate of $55 a day spent on board activities, 
        when authorized by the board, plus expenses in the same manner 
        and amount as authorized by the commissioner's plan adopted 
        under section 43A.18, subdivision 2.  Members who, as a result 
        of time spent attending board meetings, incur child care 
        expenses that would not otherwise have been incurred, may be 
        reimbursed for those expenses upon board authorization.  
           (b) Members who are state employees or employees of the 
        political subdivisions of the state must not receive the daily 
        payment for activities that occur during working hours for which 
        they are compensated by the state or political subdivision.  
        However, a state or political subdivision employee may receive 
        the daily payment if the employee uses vacation time or 
        compensatory time accumulated in accordance with a collective 
        bargaining agreement or compensation plan for board activities.  
        Members who are state employees or employees of the political 
        subdivisions of the state may receive the expenses provided for 
        in this subdivision unless the expenses are reimbursed by 
        another source.  Members who are state employees or employees of 
        political subdivisions of the state may be reimbursed for child 
        care expenses only for time spent on board activities that are 
        outside their working hours. 
           (c) Each board must adopt internal standards prescribing 
        what constitutes a day spent on board activities for purposes of 
        making daily payments under this subdivision. 
           [EFFECTIVE DATE.] This section is effective July 1, 2001, 
        and applies to service on or after that date. 
           Sec. 17.  Minnesota Statutes 2000, section 15.059, 
        subdivision 3, as amended by Laws 2001, chapter 61, section 2, 
        is amended to read: 
           Subd. 3.  [COMPENSATION.] (a) Members of the advisory 
        councils and committees may be compensated at the rate of $55 a 
        day spent on council or committee activities, when authorized by 
        the council or committee, plus expenses in the same manner and 
        amount as authorized by the commissioner's plan adopted under 
        section 43A.18, subdivision 2.  Members who, as a result of time 
        spent attending council or committee meetings, incur child care 
        expenses that would not otherwise have been incurred, may be 
        reimbursed for those expenses upon council or committee 
        authorization.  
           (b) Members who are state employees or employees of 
        political subdivisions must not receive the daily compensation 
        for activities that occur during working hours for which they 
        are compensated by the state or political subdivision.  However, 
        a state or political subdivision employee may receive the daily 
        payment if the employee uses vacation time or compensatory time 
        accumulated in accordance with a collective bargaining agreement 
        or compensation plan for council or committee activity.  Members 
        who are state employees or employees of the political 
        subdivisions of the state may receive the expenses provided for 
        in this section unless the expenses are reimbursed by another 
        source.  Members who are state employees or employees of 
        political subdivisions of the state may be reimbursed for child 
        care expenses only for time spent on board activities that are 
        outside their working hours. 
           (c) Each council and committee must adopt internal 
        standards prescribing what constitutes a day spent on council or 
        committee activities for purposes of making daily payments under 
        this subdivision. 
           [EFFECTIVE DATE.] This section is effective July 1, 2001, 
        and applies to service on or after that date. 
           Sec. 18.  Minnesota Statutes 2000, section 15A.0815, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SALARY LIMITS.] The governor or other 
        appropriate appointing authority shall set the salary rates for 
        positions listed in this section within the salary limits listed 
        in subdivisions 2 to 4, subject to approval of the legislative 
        coordinating commission and the legislature as provided 
        by subdivision 5 and sections 3.855, and 15A.081, subdivision 7b 
        , and 43A.18, subdivision 5. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 19.  Minnesota Statutes 2000, section 15A.0815, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [APPOINTING AUTHORITIES TO RECOMMEND CERTAIN 
        SALARIES.] (a) The governor, or other appropriate appointing 
        authority, may submit to the legislative coordinating commission 
        recommendations for salaries within the salary limits for the 
        positions listed in subdivisions 2 to 4.  An appointing 
        authority may also propose additions or deletions of positions 
        from those listed. 
           (b) Before submitting the recommendations, the appointing 
        authority shall consult with the commissioner of employee 
        relations concerning the recommendations.  
           (c) In making recommendations, the appointing authority 
        shall consider the criteria established in section 43A.18, 
        subdivision 8, and the performance of individual incumbents.  
        The performance evaluation must include a review of an 
        incumbent's progress toward attainment of affirmative action 
        goals.  The appointing authority shall establish an objective 
        system for quantifying knowledge, abilities, duties, 
        responsibilities, and accountabilities, and in determining 
        recommendations, rate each position by this system. 
           (d) Before the appointing authority's recommended salaries 
        take effect, the recommendations must be reviewed and approved, 
        rejected, or modified by the legislative coordinating commission 
        and the legislature under section 3.855, subdivisions 2 and 3.  
        If, when the legislature is not in session, the commission fails 
        to reject or modify salary recommendations of the governor 
        within 30 calendar days of their receipt, the recommendations 
        are deemed to be approved. 
           (e) The appointing authority shall set the initial salary 
        of a head of a new agency or a chair of a new metropolitan board 
        or commission whose salary is not specifically prescribed by law 
        after consultation with the commissioner, whose recommendation 
        is advisory only.  The amount of the new salary must be 
        comparable to the salary of an agency head or commission chair 
        having similar duties and responsibilities. 
           (f) The salary of a newly appointed head of an agency or 
        chair of a metropolitan agency listed in subdivisions 2 to 4, 
        may be increased or decreased by the appointing authority from 
        the salary previously set for that position within 30 days of 
        the new appointment after consultation with the commissioner.  
        If the appointing authority increases a salary under this 
        paragraph, the appointing authority shall submit the new salary 
        to the legislative coordinating commission and the full 
        legislature for approval, modification, or rejection under 
        section 3.855, subdivisions 2 and 3.  If, when the legislature 
        is not in session, the commission fails to reject or modify 
        salary recommendations of the governor within 30 calendar days 
        of their receipt, the recommendations are deemed to be approved. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 20.  Minnesota Statutes 2000, section 16A.06, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [TECHNOLOGY BUDGET BOOK.] The department must 
        prepare a separate budget book containing all of the 
        administration's technology initiatives.  The book must be in 
        the same format as other biennial budget books. 
           Sec. 21.  Minnesota Statutes 2000, section 16A.10, is 
        amended by adding a subdivision to read: 
           Subd. 1c.  [PERFORMANCE MEASURES FOR CHANGE ITEMS.] For 
        each change item in the budget proposal requesting new or 
        increased funding, the budget document must present proposed 
        performance measures that can be used to determine if the new or 
        increased funding is accomplishing its goals. 
           Sec. 22.  [16A.1286] [STATEWIDE SYSTEMS ACCOUNT.] 
           Subdivision 1.  [CONTINUATION.] The statewide systems 
        account is a separate account in the special revenue fund.  All 
        money resulting from billings for statewide systems services 
        must be deposited in the account.  For the purposes of this 
        section, statewide systems includes the state accounting system, 
        payroll system, human resources systems, procurement system, and 
        related information access systems. 
           Subd. 2.  [BILLING PROCEDURES.] The commissioner may bill 
        up to $7,520,000 in each fiscal year for statewide systems 
        services provided to state agencies, judicial branch agencies, 
        the University of Minnesota, the Minnesota state colleges and 
        universities, and other entities.  Billing must be based only on 
        usage of services relating to statewide systems provided by the 
        intertechnologies division.  Each agency shall transfer from 
        agency operating appropriations to the statewide systems account 
        the amount billed by the commissioner.  Billing policies and 
        procedures related to statewide systems services must be 
        developed by the commissioner in consultation with the 
        commissioners of employee relations and administration, the 
        University of Minnesota, and the Minnesota state colleges and 
        universities. 
           Subd. 3.  [APPROPRIATION.] Money transferred into the 
        account is appropriated to the commissioner to pay for statewide 
        systems services during the biennium in which it is appropriated.
           Subd. 4.  [SUPERSEDE.] This section supersedes section 
        8.31, subdivision 2c. 
           Subd. 5.  [EXPIRATION.] This section expires June 30, 2003. 
           Sec. 23.  [16A.151] [PROCEEDS OF LITIGATION OR SETTLEMENT.] 
           Subdivision 1.  [STATE FUNDS; GENERAL FUND.] (a) This 
        subdivision applies, notwithstanding any law to the contrary, 
        except as provided in subdivision 2. 
           (b) A state official may not commence, pursue, or settle 
        litigation, or settle a matter that could have resulted in 
        litigation, in a manner that would result in money being 
        distributed to a person or entity other than the state. 
           (c) Money recovered by a state official in litigation or in 
        settlement of a matter that could have resulted in litigation is 
        state money and must be deposited in the general fund. 
           Subd. 2.  [EXCEPTIONS.] (a) If a state official litigates 
        or settles a matter on behalf of specific injured persons or 
        entities, this section does not prohibit distribution of money 
        to the specific injured persons or entities on whose behalf the 
        litigation or settlement efforts were initiated.  If money 
        recovered on behalf of injured persons or entities cannot 
        reasonably be distributed to those persons or entities because 
        they cannot readily be located or identified or because the cost 
        of distributing the money would outweigh the benefit to the 
        persons or entities, the money must be paid into the general 
        fund.  
           (b) Money recovered on behalf of a fund in the state 
        treasury other than the general fund may be deposited in that 
        fund. 
           (c) This section does not prohibit a state official from 
        distributing money to a person or entity other than the state in 
        litigation or potential litigation in which the state is a 
        defendant or potential defendant. 
           Subd. 3.  [DEFINITIONS.] For purposes of this section: 
           (1) "litigation" includes civil, criminal, and 
        administrative actions; 
           (2) "money recovered" includes actual damages, punitive or 
        exemplary damages, statutory damages, and civil and criminal 
        penalties; and 
           (3) "state official" means the attorney general, another 
        constitutional officer, an agency, or an agency employee, acting 
        in official capacity.  
           Sec. 24.  Minnesota Statutes 2000, section 16A.152, 
        subdivision 7, is amended to read: 
           Subd. 7.  [DELAY; REDUCTION.] The commissioner may delay 
        paying up to 15 percent of an appropriation to a special taxing 
        district or a system of higher education in that entity's fiscal 
        year for up to 60 days after the start of its next fiscal year.  
        The delayed amount is subject to allotment reduction under 
        subdivision 1 4. 
           Sec. 25.  Minnesota Statutes 2000, section 16B.25, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NOTICE.] Lost or abandoned property found on 
        state lands is placed in the custody of the commissioner.  If 
        the rightful owner is known, the owner must be notified by 
        certified mail and may reclaim the property on paying the 
        expenses of the search.  If the owner is unknown, the 
        commissioner must give two weeks' published notice in the county 
        where the property was found.  Within six months following 
        publication, the rightful owner may receive the property on 
        paying the search expenses.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 26.  Minnesota Statutes 2000, section 16B.60, 
        subdivision 3, is amended to read: 
           Subd. 3.  [MUNICIPALITY.] "Municipality" means a city, 
        county, or town meeting the requirements of section 368.01, 
        subdivision 1, the University of Minnesota, or the state for 
        public buildings and state licensed facilities.  
           Sec. 27.  Minnesota Statutes 2000, section 16B.60, is 
        amended by adding a subdivision to read: 
           Subd. 12.  [DESIGNATE.] "Designate" means the formal 
        designation by a municipality's administrative authority of a 
        certified building official accepting responsibility for code 
        administration. 
           Sec. 28.  Minnesota Statutes 2000, section 16B.60, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [ADMINISTRATIVE AUTHORITY.] "Administrative 
        authority" means a municipality's governing body or their 
        assigned administrative authority. 
           Sec. 29.  Minnesota Statutes 2000, section 16B.61, 
        subdivision 1, as amended by Laws 2001, chapter 207, section 1, 
        is amended to read: 
           Subdivision 1.  [ADOPTION OF CODE.] Subject to sections 
        16B.59 to 16B.75, the commissioner shall by rule establish a 
        code of standards for the construction, reconstruction, 
        alteration, and repair of buildings, governing matters of 
        structural materials, design and construction, fire protection, 
        health, sanitation, and safety, including design and 
        construction standards regarding heat loss control, 
        illumination, and climate control.  The code must also include 
        duties and responsibilities for code administration, including 
        procedures for administrative action, penalties, and suspension 
        and revocation of certification.  The code must conform insofar 
        as practicable to model building codes generally accepted and in 
        use throughout the United States, including a code for building 
        conservation.  In the preparation of the code, consideration 
        must be given to the existing statewide specialty codes 
        presently in use in the state.  Model codes with necessary 
        modifications and statewide specialty codes may be adopted by 
        reference.  The code must be based on the application of 
        scientific principles, approved tests, and professional 
        judgment.  To the extent possible, the code must be adopted in 
        terms of desired results instead of the means of achieving those 
        results, avoiding wherever possible the incorporation of 
        specifications of particular methods or materials.  To that end 
        the code must encourage the use of new methods and new 
        materials.  Except as otherwise provided in sections 16B.59 to 
        16B.75, the commissioner shall administer and enforce the 
        provisions of those sections. 
           The commissioner shall develop rules addressing the plan 
        review fee assessed to similar buildings without significant 
        modifications including provisions for use of building systems 
        as specified in the industrial/modular program specified in 
        section 16B.75.  Additional plan review fees associated with 
        similar plans must be based on costs commensurate with the 
        direct and indirect costs of the service. 
           Sec. 30.  Minnesota Statutes 2000, section 16B.65, is 
        amended to read: 
           16B.65 [BUILDING OFFICIALS.] 
           Subdivision 1.  [APPOINTMENTS DESIGNATION.] The governing 
        body of By January 1, 2002, each municipality shall, unless 
        other means are already provided, appoint designate a building 
        official to administer the code.  A municipality may designate 
        no more than one building official responsible for code 
        administration defined by each certification category 
        established in rule.  Two or more municipalities may combine in 
        the appointment designation of a single building official for 
        the purpose of administering the provisions of the code within 
        their communities.  In those municipalities for which no 
        building officials have been appointed designated, the state 
        building official, with the approval of the commissioner, may 
        appoint building officials to serve until the municipalities 
        have made an appointment.  If unable to make an appointment, the 
        state building official may use whichever state employees or 
        state agencies are necessary to perform the duties of the 
        building official until the municipality makes a temporary or 
        permanent designation.  All costs incurred by virtue of an 
        appointment by the state building official or these services 
        rendered by state employees must be borne by the involved 
        municipality. and receipts arising from the appointment these 
        services must be paid into the state treasury and credited to 
        the special revenue general fund.  
           Subd. 2.  [QUALIFICATIONS.] A building official, to be 
        eligible for appointment designation, must be certified and have 
        the experience in design, construction, and supervision which 
        the commissioner deems necessary and must be generally informed 
        on the quality and strength of building materials, accepted 
        building construction requirements, and the nature of equipment 
        and needs conducive to the safety, comfort, and convenience of 
        building occupants.  Each building official must be certified 
        under this section, except that the qualifications outlined in 
        this section are not mandatory regarding any building official 
        in any municipality engaged in the administration of a building 
        code on May 27, 1971, and continuing that function through July 
        1, 1972 No person may be designated as a building official for a 
        municipality unless the commissioner determines that the 
        official is qualified as provided in subdivision 3.  
           Subd. 3.  [CERTIFICATION.] The commissioner shall:  
           (1) prepare and conduct written and practical examinations 
        to determine if a person is qualified pursuant to subdivision 2 
        to be a building official; 
           (2) accept documentation of successful completion of 
        testing programs developed by nationally recognized testing 
        agencies, as proof of qualification pursuant to subdivision 2; 
        or 
           (3) determine qualifications by both clauses (1) and (2).  
           Upon a determination of qualification under clause (1), 
        (2), or both of them, the commissioner shall issue a certificate 
        to the building official stating that the official is 
        certified.  Each person applying for examination and 
        certification pursuant to this section shall pay a nonrefundable 
        fee of $70.  The commissioner or a designee may establish 
        classes categories of certification that will recognize the 
        varying complexities of code enforcement in the municipalities 
        within the state.  Except as provided by subdivision 2, no 
        person may act as a building official for a municipality unless 
        the commissioner determines that the official is qualified.  The 
        commissioner shall provide educational programs designed to 
        train and assist building officials in carrying out their 
        responsibilities. 
           The department of employee relations may, at the request of 
        the commissioner, provide statewide testing services. 
           Subd. 4.  [DUTIES.] Building officials shall, in the 
        municipality for which they are appointed designated, attend to 
        be responsible for all aspects of code administration for which 
        they are certified, including the issuance of all building 
        permits and the inspection of all manufactured home 
        installations.  The commissioner may direct a municipality with 
        a building official to perform services for another 
        municipality, and in that event the municipality being served 
        shall pay the municipality rendering the services the reasonable 
        costs of the services.  The costs may be subject to approval by 
        the commissioner.  
           Subd. 5.  [REMOVAL FROM OFFICE OVERSIGHT COMMITTEE.] Except 
        as otherwise provided for by law the commissioner may, upon 
        notice and hearing, direct the dismissal of a building official 
        when it appears to the commissioner by competent evidence that 
        the building official has consistently failed to act in the 
        public interest in the performance of duties.  Notice must be 
        provided and the hearing conducted in accordance with the 
        provisions of chapter 14 governing contested case proceedings.  
        Nothing in this subdivision limits or otherwise affects the 
        authority of a municipality to dismiss or suspend a building 
        official at its discretion, except as otherwise provided for by 
        law.  (a) The commissioner shall establish a code administration 
        oversight committee to evaluate, mediate, and recommend to the 
        commissioner any administrative action, penalty, suspension, or 
        revocation with respect to complaints filed with or information 
        received by the commissioner alleging or indicating the 
        unauthorized performance of official duties or unauthorized use 
        of the title certified building official, or a violation of 
        statute, rule, or order that the commissioner has issued or is 
        empowered to enforce.  The committee consists of five certified 
        building officials, at least two of whom must be from 
        nonmetropolitan counties.  Committee members must be compensated 
        according to section 15.059, subdivision 3.  The commissioner's 
        designee shall act as an ex-officio member of the oversight 
        committee.  
           (b) If the commissioner has a reasonable basis to believe 
        that a person has engaged in an act or practice constituting the 
        unauthorized performance of official duties, the unauthorized 
        use of the title certified building official, or a violation of 
        a statute, rule, or order that the commissioner has issued or is 
        empowered to enforce, the commissioner may proceed with 
        administrative actions or penalties as described in subdivision 
        5a or suspension or revocation as described in subdivision 5b.  
           Subd. 5a.  [ADMINISTRATIVE ACTION AND PENALTIES.] The 
        commissioner shall, by rule, establish a graduated schedule of 
        administrative actions for violations of sections 16B.59 to 
        16B.75 and rules adopted under those sections.  The schedule 
        must be based on and reflect the culpability, frequency, and 
        severity of the violator's actions.  The commissioner may impose 
        a penalty from the schedule on a certification holder for a 
        violation of sections 16B.59 to 16B.75 and rules adopted under 
        those sections.  The penalty is in addition to any criminal 
        penalty imposed for the same violation.  Administrative monetary 
        penalties imposed by the commissioner must be paid to the 
        general fund.  
           Subd. 5b.  [SUSPENSION; REVOCATION.] Except as otherwise 
        provided for by law, the commissioner may, upon notice and 
        hearing, revoke or suspend or refuse to issue or reissue a 
        building official certification if the applicant, building 
        official, or certification holder: 
           (1) violates a provision of sections 16B.59 to 16B.75 or a 
        rule adopted under those sections; 
           (2) engages in fraud, deceit, or misrepresentation while 
        performing the duties of a certified building official; 
           (3) makes a false statement in an application submitted to 
        the commissioner or in a document required to be submitted to 
        the commissioner; or 
           (4) violates an order of the commissioner.  
           Notice must be provided and the hearing conducted in 
        accordance with the provisions of chapter 14 governing contested 
        case proceedings.  Nothing in this subdivision limits or 
        otherwise affects the authority of a municipality to dismiss or 
        suspend a building official at its discretion, except as 
        otherwise provided for by law. 
           Subd. 6.  [VACANCIES.] In the event that a certified 
        designated building official vacates that position is vacant 
        within a municipality, that municipality shall appoint designate 
        a certified building official to fill the vacancy as soon as 
        possible.  The commissioner must be notified of any vacancy or 
        designation in writing within 15 days.  If the municipality 
        fails to appoint designate a certified building official within 
        90 15 days of the occurrence of the vacancy, the state building 
        official may make the appointment or provide state employees to 
        serve that function as provided in subdivision 1 until the 
        municipality makes a temporary or permanent designation.  
        Municipalities must not issue permits without a designated 
        certified building official.  
           Subd. 7.  [CONTINUING EDUCATION.] Subject to sections 
        16B.59 to 16B.75, the commissioner may by rule establish or 
        approve continuing education programs for municipal building 
        officials dealing with matters of building code administration, 
        inspection, and enforcement.  
           Effective January 1, 1985, Each person certified as a 
        building official for the state must satisfactorily complete 
        applicable educational programs established or approved by the 
        commissioner every three calendar years to retain certification. 
           Each person certified as a building official must submit in 
        writing to the commissioner an application for renewal of 
        certification within 60 days of the last day of the third 
        calendar year following the last certificate issued.  Each 
        application for renewal must be accompanied by proof of 
        satisfactory completion of minimum continuing education 
        requirements and the certification renewal fee established by 
        the commissioner.  
           For persons certified prior to January 1, 1985, the first 
        three-year period commences January 1, 1985. 
           Sec. 31.  Minnesota Statutes 2000, section 16B.70, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [REVENUE TO EQUAL COSTS.] Revenue received from 
        the surcharge imposed in subdivision 1 should approximately 
        equal the cost, including the overhead cost, of administering 
        sections 16B.59 to 16B.75.  By November 30 each year, the 
        commissioner must report to the commissioner of finance and to 
        the legislature on changes in the surcharge imposed in 
        subdivision 1 needed to comply with this policy.  In making this 
        report, the commissioner must assume that the services 
        associated with administering sections 16B.59 to 16B.75 will 
        continue to be provided at the same level provided during the 
        fiscal year in which the report is made. 
           Sec. 32.  Minnesota Statutes 2000, section 16B.88, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INFORMATION CENTER FOR VOLUNTEER 
        PROGRAMS.] (a) The office of citizenship and volunteer services 
        is under the supervision and administration of a director 
        appointed by the commissioner governor.  The office shall:  (1) 
        operate as a state information, technical assistance, and 
        promotion center for volunteer programs; and (2) promote and 
        facilitate citizen participation in local governance and public 
        problem solving. 
           (b) In furtherance of the mission in paragraph (a), clause 
        (2), the office shall: 
           (1) engage in education and other activities designed to 
        enhance the capacity of citizens to solve problems affecting 
        their communities; 
           (2) promote and support efforts by citizens, 
        community-based organizations, nonprofits, churches, and local 
        governments to collaborate in solving community problems; 
           (3) encourage local governments to provide increased 
        opportunities for citizen involvement in public decision making 
        and public problem solving; 
           (4) refer innovative approaches to encourage greater public 
        access to and involvement in state and local government 
        decisions to appropriate state and local government officials; 
           (5) encourage units of state and local government to 
        respond to citizen initiatives and ideas; 
           (6) promote processes for involving citizens in government 
        decisions; and 
           (7) recognize and publicize models of effective public 
        problem solving by citizens. 
           Sec. 33.  Minnesota Statutes 2000, section 16C.02, is 
        amended by adding a subdivision to read: 
           Subd. 10a.  [ORGANIZATIONAL CONFLICT OF 
        INTEREST.] "Organizational conflict of interest" means that 
        because of existing or planned activities or because of 
        relationships with other persons: 
           (1) the vendor is unable or potentially unable to render 
        impartial assistance or advice to the state; 
           (2) the vendor's objectivity in performing the contract 
        work is or might be otherwise impaired; or 
           (3) the vendor has an unfair advantage. 
           Sec. 34.  Minnesota Statutes 2000, section 16C.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RULEMAKING AUTHORITY.] Subject to chapter 14, 
        the commissioner may adopt rules, consistent with this chapter 
        and chapter 16B, relating to the following topics: 
           (1) solicitations and responses to solicitations, bid 
        security, vendor errors, opening of responses, award of 
        contracts, tied bids, and award protest process; 
           (2) contract performance and failure to perform; 
           (3) authority to debar or suspend vendors, and 
        reinstatement of vendors; 
           (4) contract cancellation; and 
           (5) procurement from rehabilitation facilities; and 
           (6) organizational conflicts of interest. 
           Sec. 35.  Minnesota Statutes 2000, section 16C.03, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [COMMISSIONER APPROVAL.] Notwithstanding any law 
        to the contrary, after January 1, 2002, any contract entered 
        into by the department of transportation must be approved by the 
        commissioner, unless the commissioner has delegated approval 
        authority to the department of transportation under subdivision 
        16. 
           Sec. 36.  Minnesota Statutes 2000, section 16C.04, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [ORGANIZATIONAL CONFLICTS OF INTEREST.] (a) The 
        commissioner shall make reasonable efforts to avoid, mitigate, 
        or neutralize organizational conflicts of interest.  To avoid an 
        organizational conflict of interest, the commissioner may 
        utilize methods including disqualifying a vendor from 
        eligibility for a contract award or canceling the contract if 
        the conflict is discovered after a contract has been issued.  To 
        mitigate or neutralize a conflict, the commissioner may use 
        methods such as revising the scope of work to be conducted, 
        allowing vendors to propose the exclusion of task areas that 
        create a conflict, or providing information to all vendors to 
        assure that all facts are known to all vendors.  
           (b) In instances where a conflict or potential conflict has 
        been identified and the commissioner determines that vital 
        operations of the state will be jeopardized if a contract with 
        the vendor is not established, the commissioner may waive the 
        requirements in paragraph (a). 
           Sec. 37.  Minnesota Statutes 2000, 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 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; 
           (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) the combined contract and amendments shall 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) 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.  Bond purchase 
        agreements by the Minnesota public facilities authority do not 
        require the approval of the commissioner.  
           (c) A fully executed copy of every contract must be kept on 
        file at the contracting agency. 
           Sec. 38.  [16C.055] [BARTER ARRANGEMENTS LIMITED.] 
           Subdivision 1.  [REPORT.] By January 15, 2002, the 
        legislative auditor shall report to the legislature and governor 
        on agency use of barter agreements in furtherance of an agency's 
        mission.  The report shall list the type and approximate value 
        of each agency's agreement or agreements. 
           Subd. 2.  [RESTRICTION.] After July 1, 2002, an agency may 
        not contract or otherwise agree with a nongovernmental entity to 
        receive total nonmonetary consideration valued at more than 
        $100,000 in exchange for the agency providing nonmonetary 
        consideration, unless such an agreement is specifically 
        authorized by law.  This subdivision does not apply to the state 
        lottery. 
           Sec. 39.  Minnesota Statutes 2000, section 16C.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SOLICITATION PROCESS.] (a) A formal solicitation 
        must be used to acquire all goods, service contracts, and 
        utilities estimated at or more than $25,000 $50,000 unless 
        otherwise provided for.  All formal responses must be sealed 
        when they are received and must be opened in public at the hour 
        stated in the solicitation.  Formal responses must be 
        authenticated by the responder in a manner specified by the 
        commissioner.  
           (b) An informal solicitation may be used to acquire all 
        goods, service contracts, and utilities that are estimated at 
        less than $25,000 $50,000.  The number of vendors required to 
        receive solicitations may be determined by the commissioner.  
        Informal responses must be authenticated by the responder in a 
        manner specified by the commissioner. 
           Sec. 40.  Minnesota Statutes 2000, section 16C.06, 
        subdivision 3, is amended to read: 
           Subd. 3.  [INFORMATION IN BIDS AND PROPOSALS.] (a) Only the 
        name of the vendor and dollar amounts specified in a response to 
        a request for bids shall be read at the time of opening.  Only 
        the name of the responding vendors to all requests for proposals 
        shall be read at the time of opening.  All other information 
        contained in a vendor's response to a bid is classified as 
        nonpublic data, as defined in section 13.02, and remains 
        nonpublic data until completion of the selection process.  All 
        other information contained in a vendor's response to a request 
        for proposal, other than the name of the vendor, is classified 
        as nonpublic data, as defined in section 13.02, and remains 
        nonpublic data until the completion of the evaluation process.  
           (b) All responses are public information at the time of the 
        award unless otherwise provided for.  All responses and 
        documents pertaining to the final award of an acquisition must 
        be retained and made a part of a permanent file or record and 
        remain open to public inspection, after award, unless otherwise 
        provided for by law. 
           (c) If the commissioner rejects all responses to a 
        solicitation, information in the responses, other than the 
        information made public pursuant to paragraph (a), remains 
        nonpublic data, as defined in section 13.02, until a selection 
        is made based on responses to a resolicitation of bids, the 
        evaluation process is completed based on responses to a 
        resolicitation of a request for proposals, or a determination is 
        made to abandon the purchase. 
           Sec. 41.  [16C.066] [COST-BENEFIT ANALYSIS.] 
           (a) The commissioner or an agency official to whom the 
        commissioner has delegated duties under section 16C.03, 
        subdivision 16, may not approve a contract or purchase of goods 
        or services for transit or other transportation purposes in an 
        amount greater than $10,000,000 unless a cost-benefit analysis 
        has been completed and shows a positive benefit to the public.  
        The management analysis division must perform or direct the 
        performance of the analysis.  A cost-benefit analysis must be 
        performed for a project if an aggregation of contracts or 
        purchases for a project exceeds $10,000,000. 
           (b) All cost-benefit analysis documents under this section, 
        including preliminary drafts and notes, are public data. 
           (c) This section applies to contracts for goods or services 
        that are expected to have a useful life of more than three 
        years.  This section does not apply for purchase of goods or 
        services for response to a natural disaster if an emergency has 
        been declared by the governor. 
           (d) This section expires June 30, 2003. 
           Sec. 42.  Minnesota Statutes 2000, section 16C.081, is 
        amended to read: 
           16C.081 [EXCEPTION FOR FEDERAL CONTRACTS.] 
           Notwithstanding any law to the contrary, the commissioner 
        of transportation, commissioner of the pollution control agency, 
        or commissioner of natural resources an agency may, when 
        required by a federal agency entering into an intergovernmental 
        contract, negotiate contract terms providing for full or partial 
        prepayment to the federal agency before work is performed or 
        services are provided. 
           Sec. 43.  Minnesota Statutes 2000, section 16C.22, is 
        amended to read: 
           16C.22 [DISTRICT HEATING.] 
           Notwithstanding any other law, general or special, the 
        commissioner is authorized to enter into or approve a written 
        agreement not to exceed 31 years with a district heating or 
        cooling utility that will specify, but not be limited to, the 
        appropriate terms and conditions for the interchange of district 
        heating or cooling services. 
           Sec. 44.  [16E.035] [TECHNOLOGY INVENTORY.] 
           The commissioner of administration must prepare an 
        inventory of technology owned or leased by state agencies.  The 
        inventory must include:  (1) information on how the technology 
        fits into the state's information technology architecture; and 
        (2) a projected replacement schedule.  The commissioner must 
        report the inventory to the legislative committees with primary 
        jurisdiction over state technology issues by July 1 of each 
        even-numbered year. 
           Sec. 45.  Minnesota Statutes 2000, section 16E.04, 
        subdivision 2, as amended by Laws 2001, chapter 7, section 11, 
        is amended to read: 
           Subd. 2.  [RESPONSIBILITIES.] (a) In addition to other 
        activities prescribed by law, the office shall carry out the 
        duties set out in this subdivision. 
           (b) The office shall develop and establish a state 
        information architecture to ensure that further state agency 
        development and purchase of information and communications 
        systems, equipment, and services is designed to ensure that 
        individual agency information systems complement and do not 
        needlessly duplicate or conflict with the systems of other 
        agencies.  When state agencies have need for the same or similar 
        public data, the commissioner, in coordination with the affected 
        agencies, shall promote the most efficient and cost-effective 
        method of producing and storing data for or sharing data between 
        those agencies.  The development of this information 
        architecture must include the establishment of standards and 
        guidelines to be followed by state agencies. 
           (c) The office shall assist state agencies in the planning 
        and management of information systems so that an individual 
        information system reflects and supports the state agency's 
        mission and the state's requirements and functions. 
           (d) The office shall review agency requests for legislative 
        appropriations for the development or purchase of information 
        systems equipment or software. 
           (e) The office shall review major purchases of information 
        systems equipment to: 
           (1) ensure that the equipment follows the standards and 
        guidelines of the state information architecture; 
           (2) ensure that the equipment is consistent with the 
        information management principles adopted by the information 
        policy council; 
           (3) evaluate whether the agency's proposed purchase 
        reflects a cost-effective policy regarding volume purchasing; 
        and 
           (4) ensure that the equipment is consistent with other 
        systems in other state agencies so that data can be shared among 
        agencies, unless the office determines that the agency 
        purchasing the equipment has special needs justifying the 
        inconsistency. 
           (f) The office shall review the operation of information 
        systems by state agencies and provide advice and assistance to 
        ensure that these systems are operated efficiently and 
        continually meet the standards and guidelines established by the 
        office.  The standards and guidelines must emphasize uniformity 
        that encourages information interchange, open systems 
        environments, and portability of information whenever 
        practicable and consistent with an agency's authority and 
        chapter 13.  The office, in consultation with the legislative 
        reference library, shall recommend specific standards and 
        guidelines for each state agency within a time period fixed by 
        the office in regard to the following: 
           (1) establishing methods and systems directed at reducing 
        and ultimately eliminating redundant storage of data; and 
           (2) establishing information sales systems that utilize 
        licensing and royalty agreements to the greatest extent 
        possible, together with procedures for agency denial of requests 
        for licenses or royalty agreements by commercial users or 
        resellers of the information.  Section 3.751 does not apply to 
        those licensing and royalty agreements, and the agreements must 
        include provisions that section 3.751 does not apply and that 
        the state is immune from liability under the agreement. 
           (g) The office shall conduct a comprehensive review at 
        least every three years of the information systems investments 
        that have been made by state agencies and higher education 
        institutions.  The review must include recommendations on any 
        information systems applications that could be provided in a 
        more cost-beneficial manner by an outside source.  The office 
        must report the results of its review to the legislature and the 
        governor. 
           (h) The office shall report to the legislature by January 
        15 of each year on progress in implementing paragraph (f), 
        clauses (1) and (2). 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 46.  [16E.0465] [TECHNOLOGY APPROVAL.] 
           Subdivision 1.  [APPLICATION.] This section applies to an 
        appropriation of more than $1,000,000 of state or federal funds 
        to a state agency for any information and communications 
        technology project or data processing device or system or for 
        any phase of such a project, device, or system.  For purposes of 
        this section, an appropriation of state or federal funds to a 
        state agency includes an appropriation:  
           (1) to the Minnesota state colleges and universities; 
           (2) to a constitutional officer; 
           (3) for a project that includes both a state agency and 
        units of local government; and 
           (4) to a state agency for grants to be made to other 
        entities. 
           Subd. 2.  [REQUIRED REVIEW AND APPROVAL.] (a) A state 
        agency receiving an appropriation for an information and 
        communications technology project or data processing device or 
        system subject to this section must divide the project into 
        phases. 
           (b) The commissioner of finance may not authorize the 
        encumbrance or expenditure of an appropriation of state funds to 
        a state agency for any phase of a project, device, or system 
        subject to this section unless the office of technology has 
        reviewed each phase of the project, device, or system, and based 
        on this review, the commissioner of administration has 
        determined for each phase that: 
           (1) the project is compatible with the state information 
        architecture and other policies and standards established by the 
        commissioner of administration; and 
           (2) the agency is able to accomplish the goals of the phase 
        of the project with the funds appropriated. 
           Subd. 3.  [ROLE OF COMMISSIONER.] Unless money is 
        appropriated directly to the commissioner of administration, the 
        role of the commissioner and the office of technology is to 
        review and approve projects under this section, and not to 
        design or implement the projects. 
           Sec. 47.  [16E.055] [COMMON WEB FORMAT.] 
           A state agency that implements electronic government 
        services for fees, licenses, sales, or other purposes must use a 
        common Web page format approved by the commissioner of 
        administration for those electronic government services.  The 
        commissioner may create a single entry site for all agencies to 
        use for electronic government services. 
           Sec. 48.  [16E.09] [TECHNOLOGY ENTERPRISE FUND.] 
           Subdivision 1.  [FUND ESTABLISHED.] A technology enterprise 
        fund is established.  Money deposited in the fund is 
        appropriated to the commissioner of administration for the 
        purpose of funding technology projects among government entities 
        that promote cooperation, innovation, and shared use of 
        technology and technology standards, and electronic government 
        services.  Savings generated by information technology and 
        communications projects may be deposited in the fund upon 
        agreement by the commissioner of administration and the 
        executive of the government entity generating the funds.  The 
        transfer of funds between state agencies is subject to the 
        approval of the commissioner of finance.  The commissioner of 
        finance shall notify the chairs of the committees funding the 
        affected state agencies of the transfers.  Funds are available 
        until June 30, 2005. 
           Subd. 2.  [TECHNOLOGY ENTERPRISE BOARD.] A technology 
        enterprise board is established to advise the state chief 
        information officer, the office of technology, the governor, the 
        executive branch, and the legislature regarding information 
        technology funding and expenditures from the technology 
        enterprise fund.  The board shall consist of up to 18 members 
        representing public and private entities with general expertise 
        in information technology and telecommunications initiatives and 
        planning.  The state chief information officer shall act as 
        chair and the office of technology shall provide necessary staff 
        support.  Nonlegislator members shall be appointed by the 
        governor, including one nominee representing the state executive 
        council, one nominee representing the supreme court, and one 
        nominee representing the higher education advisory council; and 
        seven at-large members representing the private sector with 
        experience in business.  The speaker of the house of 
        representatives and the senate subcommittee on committees shall 
        each appoint two legislators to the board.  Legislator members 
        serve at the pleasure of the appointing authority.  Membership 
        terms, compensation, and removal of nonlegislator board members 
        are governed by section 15.059, except that terms are three 
        years and the board expires on June 30, 2005. 
           Subd. 3.  [REPORT TO LEGISLATURE.] By February 1 each year, 
        the commissioner of administration shall report to the chairs of 
        the finance committees in the senate and house of 
        representatives with jurisdiction over governmental operations 
        on expenditures and activities under this section. 
           Subd. 4.  [EXPIRATION.] This section expires June 30, 2005. 
           Sec. 49.  Minnesota Statutes 2000, section 43A.04, is 
        amended by adding a subdivision to read: 
           Subd. 12.  [TOTAL COMPENSATION REPORTING.] (a) The 
        commissioner, in consultation with the commissioner of finance, 
        shall report to the governor and the legislature by January 15 
        each year on executive branch employee salary and benefits.  The 
        purpose of the report is to assist in effective long-range 
        planning and to provide data necessary to compute annual and 
        biennial costs related to the state workforce.  The report must 
        use data available in the biennial budget system and other 
        necessary sources.  The report also must be made available to 
        the public in an electronic format. 
           (b) The report must be organized by agency.  The report 
        must list the salary or hourly rate of pay for each agency 
        employee.  The report may list the employee by name or by an 
        identification number. 
           (c) The report must also include an estimate of the average 
        cost to the state of providing insurance and other benefits to a 
        state employee. 
           Sec. 50.  Minnesota Statutes 2000, section 43A.04, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [COMBINED CHARITIES CAMPAIGN.] (a) The 
        commissioner shall administer the state employee combined 
        charities campaign.  This duty includes registration of combined 
        charitable organizations under section 309.501, and coordination 
        and administration of the process under which state employees 
        contribute to combined charitable organizations. 
           (b) The commissioner, in consultation with other 
        commissioners, shall appoint a voluntary board of state 
        employees to oversee the conduct of an annual combined charities 
        campaign.  The board must, to the extent possible, represent a 
        cross-section of state employee groups and geographic areas 
        where state employees are located.  The board shall provide 
        direction to the commissioner's employee assigned to administer 
        the annual campaign and shall approve any expenditure of state 
        funds appropriated for purposes of this subdivision. 
           Sec. 51.  Minnesota Statutes 2000, section 43A.047, is 
        amended to read: 
           43A.047 [CONTRACTED SERVICES.] 
           (a) Executive agencies, including the Minnesota state 
        colleges and universities system, must demonstrate that they 
        cannot use available staff before hiring outside consultants or 
        services.  If use of consultants is necessary, agencies are 
        encouraged to negotiate contracts that will involve permanent 
        staff, so as to upgrade and maximize training of state employees.
           (b) If agencies reduce operating budgets, agencies must 
        give priority to reducing spending on professional and technical 
        service contracts before laying off permanent employees. 
           (c) Agencies must report to the commissioner of 
        administration by November 1 each year on implementation of this 
        section during the previous fiscal year.  The reports must 
        include amounts spent on professional and technical service 
        contracts during the previous fiscal year.  The commissioner 
        shall compile the reports into a uniform format and forward them 
        to the chairs of the senate finance and house ways and means 
        committees by November 15. 
           Sec. 52.  Minnesota Statutes 2000, section 79.34, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONDITIONS REQUIRING MEMBERSHIP.] The 
        nonprofit association known as the workers' compensation 
        reinsurance association may be incorporated under chapter 317A 
        with all the powers of a corporation formed under that chapter, 
        except that if the provisions of that chapter are inconsistent 
        with sections 79.34 to 79.40, sections 79.34 to 79.40 govern.  
        Each insurer as defined by section 79.01, subdivision 2, shall, 
        as a condition of its authority to transact workers' 
        compensation insurance in this state, be a member of the 
        reinsurance association and is bound by the plan of operation of 
        the reinsurance association; provided, that all affiliated 
        insurers within a holding company system as defined in chapter 
        60D are considered a single entity for purposes of the exercise 
        of all rights and duties of membership in the reinsurance 
        association.  Each self-insurer approved under section 176.181 
        and each political subdivision that self-insures shall, as a 
        condition of its authority to self-insure workers' compensation 
        liability in this state, be a member of the reinsurance 
        association and is bound by its plan of operation; provided that:
           (1) all affiliated companies within a holding company 
        system, as determined by the commissioner of labor and industry 
        in a manner consistent with the standards and definitions in 
        chapter 60D, are considered a single entity for purposes of the 
        exercise of all rights and duties of membership in the 
        reinsurance association; and 
           (2) all group self-insurers granted authority to 
        self-insure pursuant to section 176.181 are considered single 
        entities for purposes of the exercise of all the rights and 
        duties of membership in the reinsurance association.  As a 
        condition of its authority to self-insure workers' compensation 
        liability, and for losses incurred after December 31, 1983, the 
        state is a member of the reinsurance association and is bound by 
        its plan of operation.  The commissioner of employee relations 
        represents the state in the exercise of all the rights and 
        duties of membership in the reinsurance association.  The state 
        treasurer shall pay the premium to the reinsurance association 
        from the state compensation revolving fund upon warrants of the 
        commissioner of employee relations, except that The amounts 
        necessary to pay the state's premiums required for coverage by 
        the workers' compensation reinsurance association are 
        appropriated from the general fund to the commissioner of 
        employee relations.  The University of Minnesota shall pay its 
        portion of workers' compensation reinsurance premiums directly 
        to the workers' compensation reinsurance association.  For the 
        purposes of this section, "state" means the administrative 
        branch of state government, the legislative branch, the judicial 
        branch, the University of Minnesota, and any other entity whose 
        workers' compensation liability is paid from the state revolving 
        fund.  The commissioner of finance may calculate, prorate, and 
        charge a department or agency the portion of premiums paid to 
        the reinsurance association for employees who are paid wholly or 
        in part by federal funds, dedicated funds, or special revenue 
        funds.  The reinsurance association is not a state agency.  
        Actions of the reinsurance association and its board of 
        directors and actions of the commissioner of labor and industry 
        with respect to the reinsurance association are not subject to 
        chapters 13 and 15.  All property owned by the association is 
        exempt from taxation.  The reinsurance association is not 
        obligated to make any payments or pay any assessments to any 
        funds or pools established pursuant to this chapter or chapter 
        176 or any other law. 
           Sec. 53.  [116T.01] [DEFINITIONS.] 
           For purposes of this chapter: 
           (1) "board" means the board of directors of Northern 
        Technology Initiative, Inc.; and 
           (2) "corporation" means Northern Technology Initiative, Inc.
           Sec. 54.  [116T.02] [CORPORATION; MEMBERS; BOARD OF 
        DIRECTORS; POWERS.] 
           Subdivision 1.  [PUBLIC CORPORATION.] Northern Technology 
        Initiative, Inc. is a public corporation of the state and is not 
        subject to the laws governing a state agency except as provided 
        in this chapter.  The business of the corporation must be 
        conducted under the name "Northern Technology Initiative, Inc." 
           Subd. 2.  [PURPOSE.] Northern Technology Initiative, Inc. 
        is a regional economic initiative of Minnesota counties, 
        townships, home rule charter or statutory cities within 
        participating counties, economic development groups, state and 
        federal agencies, public and private post-secondary 
        institutions, and businesses.  The project area includes, at a 
        minimum, the counties of Carlton, Chisago, Isanti, Kanabec, and 
        Pine, but may be expanded as other contiguous counties elect to 
        participate.  The purpose of the corporation is to engage in an 
        integrated, jointly planned economic development effort with a 
        focus on encouraging growth among existing businesses and 
        attracting technology companies to the region served by the 
        corporation.  A home rule charter city, statutory city, county, 
        township, or other public entity participating in the initiative 
        may budget public funds for the initiative.  
           Subd. 3.  [BOARD OF DIRECTORS.] The corporation is governed 
        by a board of directors consisting of: 
           (1) a member of the governing body of each participating 
        county, appointed by the governing body; 
           (2) a member of the governing body of each participating 
        home rule charter or statutory city, appointed by the governing 
        body; 
           (3) the president of each participating post-secondary 
        institution; 
           (4) the commissioner of the department of trade and 
        economic development or an employee of the department designated 
        by the commissioner; and 
           (5) other members as may be provided by the bylaws adopted 
        and amended in accordance with subdivision 4. 
        The membership terms, compensation, removal, and filling of 
        vacancies of members of the board are governed by the bylaws of 
        the corporation. 
           Subd. 4.  [BYLAWS.] The board of directors shall adopt 
        bylaws and publish the bylaws and amendments to the bylaws in 
        the State Register.  The bylaws must provide for financial and 
        other contributions by participating entities to cover the 
        operation of the corporation. 
           Subd. 5.  [PLACES OF BUSINESS.] The board shall locate and 
        maintain the corporation's places of business within Carlton, 
        Chisago, Isanti, Kanabec, or Pine county. 
           Subd. 6.  [MEETINGS AND ACTIONS OF BOARD.] (a) The board 
        must meet at least twice a year and may hold additional meetings 
        upon giving notice in accordance with the bylaws of the 
        corporation.  Except as provided in subdivision 7, board 
        meetings are subject to chapter 13D. 
           (b) A conference among directors by any means of 
        communication through which the directors may simultaneously 
        hear each other during the conference constitutes a board 
        meeting if the number of directors participating in the 
        conference is sufficient to constitute a quorum for the 
        meeting.  Participation in a meeting by that means constitutes 
        presence in person at the meeting. 
           Subd. 7.  [CLOSED MEETINGS; RECORDING.] The board of 
        directors may, by a majority vote in a public meeting, decide to 
        hold a closed meeting for purposes of discussing data described 
        in subdivision 8 or security information, trade secret 
        information, or labor relations information, as defined in 
        section 13.37, subdivision 1.  The time and place of the closed 
        meeting must be announced at the public meeting.  A written roll 
        of members present at the closed meeting must be made available 
        to the public after the closed meeting.  The proceedings of a 
        closed meeting must be tape recorded.  The data on the tape are 
        nonpublic data or private data on individuals as defined in 
        section 13.02, subdivision 9 or 12, whichever is applicable. 
           Subd. 8.  [APPLICATION AND INVESTIGATIVE DATA.] Financial 
        data, statistics, and information furnished to the corporation 
        in connection with assistance or proposed assistance, including 
        credit reports; financial statements; statements of net worth; 
        income tax returns, either personal or corporate; and any other 
        business and personal financial records, are private data with 
        regard to data on individuals under section 13.02, subdivision 
        12, or nonpublic data with regard to data not on individuals 
        under section 13.02, subdivision 9. 
           Subd. 9.  [CONFLICT OF INTEREST.] A director, employee, or 
        officer of the corporation may not participate in or vote on a 
        decision of the board relating to an organization in which the 
        director has either a direct or indirect financial interest or a 
        conflict of interest as described in section 10A.07. 
           Subd. 10.  [TORT CLAIMS.] The corporation is a state agency 
        for purposes of section 3.736, except the corporation, not the 
        state, is responsible for paying for any tort liability. 
           Subd. 11.  [DATA PRACTICES AND RECORDS MANAGEMENT.] The 
        corporation is subject to chapter 13 and sections 15.17 and 
        138.163 to 138.226. 
           Sec. 55.  [116T.03] [CORPORATE PERSONNEL.] 
           Subdivision 1.  [GENERALLY.] The board shall appoint and 
        set the compensation for the executive director who serves as 
        chief executive officer of the corporation.  The compensation of 
        the executive director may not exceed 85 percent of the 
        governor's salary.  The board may designate the executive 
        director as its general agent.  Subject to the approval of the 
        board, the executive director shall employ staff consultants and 
        other agents necessary to carry out the mission of the 
        corporation. 
           Subd. 2.  [STATUS OF EMPLOYEES.] Employees, officers, and 
        directors of the corporation are not state employees, but are 
        covered by section 3.736 and, at the option of the board, 
        employees may participate in the state retirement plan for 
        employees in the unclassified service, the state deferred 
        compensation plan, and an insurance plan administered by the 
        commissioner of employee relations. 
           Sec. 56.  [116T.04] [POWERS AND DUTIES OF CORPORATION.] 
           Subdivision 1.  [GENERAL POWERS AND DUTIES.] (a) The 
        corporation has the powers granted to a nonprofit corporation by 
        section 317A.161, except as otherwise provided in this chapter. 
           (b) Except as specified in section 116T.02, subdivision 10, 
        the state is not liable for the obligations of the corporation. 
           (c) Section 317A.161 applies to this chapter and the 
        corporation in the same manner that it applies to business 
        corporations established under chapter 317A. 
           Subd. 2.  [RULES.] The corporation must publish in the 
        State Register any guidelines, policies, or eligibility criteria 
        prepared or adopted by the corporation for its programs. 
           Sec. 57.  [116T.05] [AUDITS.] 
           The corporation is subject to the auditing requirements of 
        sections 3.971 and 3.972. 
           Sec. 58.  [116T.06] [DISSOLUTION.] 
           In the event of dissolution of the corporation for any 
        reason, the bylaws must provide for return of the proceeds of 
        that liquidation and any wholly owned assets of the corporation 
        to the entities participating in Northern Technology Initiative, 
        Inc. in exchange for the assumption of all outstanding 
        obligations of the corporation. 
           Sec. 59.  Minnesota Statutes 2000, section 136F.07, is 
        amended to read: 
           136F.07 [CHANCELLOR.] 
           The board shall appoint a chancellor who shall serve in the 
        unclassified service.  The chancellor shall possess powers and 
        perform duties as delegated by the board.  The board shall set 
        the salary of the chancellor according to section 15A.0815 
        15A.081, subdivision 7c. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 60.  Minnesota Statutes 2000, section 136F.40, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COMPENSATION CONTRACTS.] Notwithstanding any 
        other provision to the contrary, when establishing compensation 
        the board may provide, through a contract, a liquidated salary 
        amount or other compensation if a contract with a chancellor or 
        president is terminated by the board prior to its expiration. 
           Any benefits shall be excluded in computation of 
        retirement, insurance, and other benefits available through or 
        from the state.  Any benefits or additional compensation must be 
        as provided under the plan approved under section 43A.18, 
        subdivision 3a. (a) The board may enter into a contract with the 
        chancellor, a vice-chancellor, or a president, containing terms 
        and conditions of employment.  The terms of the contract must be 
        authorized under a plan approved under section 43A.18, 
        subdivision 3a. 
           (b) Notwithstanding section 43A.17, subdivision 11, or 
        other law to the contrary, a contract under this section may 
        provide a liquidated salary amount or other compensation if a 
        contract is terminated by the board prior to its expiration. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 61.  Minnesota Statutes 2000, section 179A.15, is 
        amended to read: 
           179A.15 [MEDIATION.] 
           Once notice has been given under section 179A.14, the 
        employer or the exclusive representative may petition the 
        commissioner for mediation services.  
           A petition by an employer shall be signed by the employer 
        or an authorized officer or agent.  A petition by an exclusive 
        representative shall be signed by its authorized officer.  All 
        petitions shall be delivered to served on the commissioner in 
        person or sent by certified mail writing.  The petition shall 
        state briefly the nature of the disagreement of the parties.  
        Upon receipt of a petition and upon concluding that mediation 
        would be useful, the commissioner shall fix a time and place for 
        a conference with the parties to negotiate the issues not agreed 
        upon, and shall then take the most expedient steps to bring 
        about a settlement, including assisting in negotiating and 
        drafting an agreement.  
           If the commissioner determines that mediation would be 
        useful in resolving a dispute, the commissioner may mediate the 
        dispute even if neither party has filed a petition for 
        mediation.  In these cases, the commissioner shall proceed as if 
        a petition had been filed.  
           The commissioner shall not furnish mediation services to 
        any employee or employee representative who is not certified as 
        an exclusive representative.  
           All parties shall respond to the summons of the 
        commissioner for conferences and shall continue in conference 
        until excused by the commissioner. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 62.  Minnesota Statutes 2000, section 190.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMPOSITION.] The militia shall consist of:
           (1) all able-bodied citizens of the state and other 
        able-bodied persons, residing in the state who have or shall 
        have declared their intention to become citizens of the United 
        States, when so authorized by federal law, who comply with the 
        minimum age requirements for federal regular military service 
        under United States Code, title 10, section 505, and who are not 
        more than 45 years of age; provided, that the governor may, when 
        the governor deems it necessary for the defense of the state, 
        extend the maximum age for militia service to not more than 64 
        years; and 
           (2) persons who enlist in, are commissioned in, or are 
        otherwise appointed to the Minnesota national guard in 
        accordance with applicable federal law and regulation, including 
        enlisted members, warrant officers, and commissioned officers. 
           Sec. 63.  Minnesota Statutes 2000, section 190.07, is 
        amended to read: 
           190.07 [APPOINTMENT; QUALIFICATIONS; RANK.] 
           There shall be an adjutant general of the state who shall 
        be appointed by the governor.  The adjutant general shall be a 
        staff officer, who at the time of appointment shall be a 
        commissioned officer of the national guard of this state, with 
        not less than ten years military service in the armed forces 
        national guard of this state or the armed forces of the United 
        States, at least three of which shall have been commissioned and 
        who shall have reached the grade of a field officer.  
           The adjutant general shall hold at least the rank of major 
        general and may be promoted to and including the highest rank 
        authorized under federal law.  However, the adjutant 
        general shall may not be appointed promoted to the rank of major 
        general without having at least 20 years service in the 
        Minnesota national guard, at least one of which one year has 
        been in the rank of brigadier general.  
           The term of the adjutant general is seven years from the 
        date of appointment.  Section 15.06, subdivisions 3, 4, and 5, 
        governs filling of vacancies in the office of adjutant general.  
        The adjutant general shall not be removed from office during a 
        term except upon withdrawal of federal recognition or as 
        otherwise provided by the military laws of this state. 
           Sec. 64.  Minnesota Statutes 2000, section 192.501, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TUITION AND TEXTBOOK REIMBURSEMENT GRANT 
        PROGRAM.] (a) The adjutant general shall establish a program to 
        provide tuition and textbook reimbursement grants to eligible 
        members of the Minnesota national guard within the limitations 
        of this subdivision. 
           (b) Eligibility is limited to a member of the national 
        guard who: 
           (1) is serving satisfactorily as defined by the adjutant 
        general; 
           (2) is attending a post-secondary educational institution, 
        as defined by section 136A.15, subdivision 6, including a 
        vocational or technical school operated or regulated by this 
        state or another state or province; and 
           (3) provides proof of satisfactory completion of 
        coursework, as defined by the adjutant general. 
           In addition, if a member of the Minnesota national guard is 
        killed in the line of state active service or federally funded 
        state active service, as defined in section 190.05, subdivisions 
        5a and 5b, the member's surviving spouse, and any surviving 
        dependent who has not yet reached 24 years of age, is eligible 
        for a tuition and textbook reimbursement grant. 
           The adjutant general may, within the limitations of this 
        paragraph and other applicable laws, determine additional 
        eligibility criteria for the grant, and must specify the 
        criteria in department regulations and publish changes as 
        necessary. 
           (c) The amount of a tuition and textbook reimbursement 
        grant must be specified on a schedule as determined and 
        published in department regulations by the adjutant general, but 
        is limited to a maximum of an amount equal to the greater of: 
           (1) 75 80 percent of the cost of tuition for lower division 
        programs in the college of liberal arts at the twin cities 
        campus of the University of Minnesota in the most recent 
        academic year; or 
           (2) 50 80 percent of the cost of tuition for the program in 
        which the person is enrolled at that Minnesota public 
        institution, or if that public institution is outside the state 
        of Minnesota, for the cost of a comparable program at the 
        University of Minnesota, except that in the case of a survivor 
        as defined in paragraph (b), the amount of the tuition and 
        textbook reimbursement grant for coursework satisfactorily 
        completed by the person is limited to 100 percent of the cost of 
        tuition for post-secondary courses at a Minnesota public 
        educational institution. 
           Paragraph (b) notwithstanding, a person is no longer 
        eligible for a grant under this subdivision once the person has 
        received grants under this subdivision for the equivalent of 208 
        quarter credits or 144 semester credits of coursework. 
           (d) Tuition and textbook reimbursement grants received 
        under this subdivision may not be considered by the Minnesota 
        higher education services office or by any other state board, 
        commission, or entity in determining a person's eligibility for 
        a scholarship or grant-in-aid under sections 136A.095 to 
        136A.1311. 
           (e) If a member fails to complete a term of enlistment 
        during which a tuition and textbook reimbursement grant was 
        paid, the adjutant general may seek to recoup a prorated amount 
        as determined by the adjutant general. 
           (f) The adjutant general shall maintain records and report 
        any findings to the legislature by March 1, 2003, on the impact 
        of increasing the reimbursement amounts under paragraph (c) 
        during the period July 1, 2001, through December 31, 2002. 
           (g) This paragraph, paragraph (f), and the amendments made 
        by this act to paragraph (c) expire June 30, 2003. 
           Sec. 65.  Minnesota Statutes 2000, section 193.144, 
        subdivision 6, is amended to read: 
           Subd. 6.  [DISPOSAL OF UNUSED SITE.] In case any land 
        acquired for armory site purposes hereunder has been donated to 
        such corporation or to the state of Minnesota by such county or 
        municipality or by other governmental agency except the state, 
        and in case such land or any part thereof shall thereafter not 
        be used for armory purposes for a continuous period of more than 
        ten years, not including the period of any war or other 
        emergency in which the armed forces of the state may be engaged, 
        the county or municipality may provide written notice to the 
        adjutant general and, if the property is not used for armory 
        purposes within one year from the notice, the adjutant general 
        shall reconvey the property to the donor county or 
        municipality.  The adjutant general may reconvey the property in 
        less than ten years, if the adjutant general determines that the 
        corporation or the state has no further interest in the property.
           Sec. 66.  Minnesota Statutes 2000, section 193.145, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PAYMENTS BY ADJUTANT GENERAL.] Whether or not 
        bonds are issued, the adjutant general is hereby authorized to 
        pay to such corporation, out of any moneys which may from time 
        to time be appropriated to and for the military department and 
        not appropriated or set apart for any other specific purpose, 
        the sum of not less than $3,000 per year for each unit of the 
        national guard quartered in such armory when only one such unit 
        is so quartered, and the sum of not less than $2,000 per year 
        for each additional unit when more than one such unit is so 
        quartered, and may bind the office of the adjutant general, both 
        currently and in the future, by agreement to such corporation to 
        make such payments in a specific amount or amounts out of such 
        appropriations for a period of not more than 40 years. 
           Sec. 67.  Minnesota Statutes 2000, section 193.148, is 
        amended to read: 
           193.148 [CONVEYANCE TO STATE.] 
           When payment has been made of all indebtedness incurred by 
        such corporation or of all funds spent by the corporation 
        incident to the procurement, erection, equipment, and operation 
        of any armory built under the provisions of sections 193.141 to 
        193.149, including the payment in full of the principal and 
        interest of all bonds issued by such corporation to cover the 
        cost of such armory or the full repayment of any commission 
        funds expended for the construction of such armory, such 
        corporation shall transfer and convey such armory building and 
        the site thereof to the state of Minnesota, for military 
        purposes, to be administered as are other state-owned armories.  
           Any unencumbered balance then held by the commission 
        accruing to such armory shall be retained to be applied to the 
        future maintenance, repair, and equipment of armories. 
           Sec. 68.  Minnesota Statutes 2000, section 197.75, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BENEFITS; ELIGIBILITY.] The commissioner 
        of veterans affairs shall spend a biennial appropriation for 
        tuition of veterans, and for tuition, fees, board, room, books 
        and supplies of the children of veterans who have died as a 
        result of their service in the armed forces of the United States 
        as determined by the United States Veterans Administration or 
        other instrumentality of the United States, in the University of 
        Minnesota, a state university, a community college, a technical 
        college, or any other university of higher learning within the 
        state accredited by the North Central Association of Colleges 
        and Secondary Schools, a law college approved by the supreme 
        court, a nursing school approved by the state board of nursing, 
        or in a trade, business, or vocational school in the state 
        approved by the state department of children, families, and 
        learning, or in a theological seminary, for any course which 
        such veteran or child may elect.  Not more than $350 $750 shall 
        be expended for the benefit of any individual veteran, and not 
        more than $350 $750 in any fiscal year shall be expended for the 
        benefit of any child under this section, and the need for the 
        benefit shall be established and determined by the commissioner 
        of veterans affairs.  No child of any veteran shall make 
        application for the benefits provided in this section unless the 
        child resided in Minnesota for at least two years immediately 
        prior to the date of the application.  Children of veterans 
        eligible for benefits according to this section shall be 
        admitted to state institutions of university grade free of 
        tuition until they receive a bachelors or equivalent degree.  
        Payments of benefits shall be made directly to the institution 
        in which the course of instruction is given or to the individual 
        on forms prescribed by the commissioner. 
           Sec. 69.  Minnesota Statutes 2000, section 197.75, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LIMITATIONS.] The benefits in subdivision 1 are 
        not available to a veteran who is entitled to the same or 
        similar benefits under a law or regulation of the United States, 
        with the exceptions in paragraphs (a) and (b). 
           (a) except that a veteran who has been eligible for and has 
        used up the benefits the veteran is entitled to under the laws 
        of the United States is entitled to the benefits provided for by 
        subdivision 1. 
           (b) A veteran who has had less than ten years of 
        eligibility for educational assistance under federal law because 
        of the December 31, 1989, delimiting date and who has lost more 
        than four months of that eligibility is entitled to the benefits 
        provided for by subdivision 1. 
           Sec. 70.  Minnesota Statutes 2000, section 214.09, 
        subdivision 3, as amended by Laws 2001, chapter 61, section 3, 
        is amended to read: 
           Subd. 3.  [COMPENSATION.] (a) Members of the boards may be 
        compensated at the rate of $55 a day spent on board activities, 
        when authorized by the board, plus expenses in the same manner 
        and amount as authorized by the commissioner's plan adopted 
        under section 43A.18, subdivision 2.  Members who, as a result 
        of time spent attending board meetings, incur child care 
        expenses that would not otherwise have been incurred, may be 
        reimbursed for those expenses upon board authorization.  
           (b) Members who are state employees or employees of the 
        political subdivisions of the state must not receive the daily 
        payment for activities that occur during working hours for which 
        they are also compensated by the state or political subdivision. 
        However, a state or political subdivision employee may receive 
        the daily payment if the employee uses vacation time or 
        compensatory time accumulated in accordance with a collective 
        bargaining agreement or compensation plan for board activity.  
        Members who are state employees or employees of the political 
        subdivisions of the state may receive the expenses provided for 
        in this subdivision unless the expenses are reimbursed by 
        another source.  Members who are state employees or employees of 
        political subdivisions of the state may be reimbursed for child 
        care expenses only for time spent on board activities that are 
        outside their working hours. 
           (c) Each board must adopt internal standards prescribing 
        what constitutes a day spent on board activities for purposes of 
        making daily payments under this subdivision. 
           [EFFECTIVE DATE.] This section is effective July 1, 2001, 
        and applies to service on or after that date. 
           Sec. 71.  [240A.13] [SOCCER FIELD DEVELOPMENT.] 
           Subdivision 1.  [GRANTS.] The commission may make matching 
        grants to political subdivisions of the state to develop new 
        soccer fields for amateur athletics.  In awarding grants, the 
        commission shall give priority to proposals from multiple 
        applicants.  To the extent possible, over time, the commission 
        shall disperse grants equally among the state's congressional 
        districts. 
           Subd. 2.  [MATCHING CRITERIA.] Each grant for soccer field 
        development under this section must be matched by recipient 
        communities or institutions in accordance with this 
        subdivision.  A matching contribution may include an in-kind 
        contribution of land; access roadways and access roadway 
        improvements; and necessary utility services, landscaping, and 
        parking.  The first $20,000 of a grant must be matched equally 
        by the recipient.  The portion of a grant that is more than 
        $20,000 but not more than $75,000 must be matched by the 
        recipient at a rate double the amount of that portion of the 
        grant.  The portion of a grant that is more than $75,000 must be 
        matched by the recipient at a rate of three times the amount of 
        that portion of the grant. 
           Sec. 72.  Minnesota Statutes 2000, 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.  The proceeds of fees 
        shall be allocated by depositing $2.55 of each $10 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 revenue 
        recapture fees collected on or after July 1, 2001. 
           Sec. 73.  Minnesota Statutes 2000, section 317A.123, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STATEMENT.] A corporation may change its 
        registered office, designate or change its registered agent, or 
        state a change in the name of its registered agent, by filing 
        with the secretary of state a statement containing:  
           (1) the name of the corporation; 
           (2) if the address of its registered office is to be 
        changed, the new address of its registered office; 
           (3) if its registered agent is to be designated or changed, 
        the name of its new registered agent; 
           (4) if the name of its registered agent is to be changed, 
        the name of its registered agent as changed; 
           (5) a statement that the address of its registered office 
        and the address of the office of its registered agent, as 
        changed, will be identical; and 
           (6) a statement that the change of registered office or 
        registered agent was authorized by resolution approved by the 
        board. 
           The statement need not be accompanied by a filing fee if 
        the statement is being filed only to change the address of the 
        registered office. 
           [EFFECTIVE DATE.] This section is effective July 1, 2002. 
           Sec. 74.  Minnesota Statutes 2000, section 317A.827, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REINSTATEMENT.] A corporation dissolved under 
        section 317A.823 may retroactively reinstate its corporate 
        existence by filing a single annual registration and paying a 
        $25 fee.  Filing the annual registration with the secretary of 
        state:  
           (1) returns the corporation to active status as of the date 
        of the dissolution; 
           (2) validates contracts or other acts within the authority 
        of the articles, and the corporation is liable for those 
        contracts or acts; and 
           (3) restores to the corporation all assets and rights of 
        the corporation and its members to the extent they were held by 
        the corporation and its members before the dissolution occurred, 
        except to the extent that assets or rights were affected by acts 
        occurring after the dissolution or sold or otherwise distributed 
        after that time. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 75.  Minnesota Statutes 2000, section 349.165, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PREMISES PERMIT REQUIRED; APPLICATION.] A 
        licensed organization may not conduct lawful gambling at any 
        site unless it has first obtained from the board a premises 
        permit for the site.  The board shall prescribe a form for 
        permit applications, and each application for a permit must be 
        submitted on a separate form.  A The premises permit issued by 
        the board is valid for two years runs concurrently with the 
        license of the organization unless the premises permit is 
        suspended, revoked, or voluntarily terminated by the 
        organization.  The board may by rule limit the number of 
        premises permits that may be issued to an organization. 
           Sec. 76.  Minnesota Statutes 2000, 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 under section 349.16, subdivision 6.  The fee for 
        each class of permit is: 
           (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. 
           Sec. 77.  Minnesota Statutes 2000, section 357.18, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SURCHARGE.] In addition to the fees imposed in 
        subdivision 1, a $4.50 $5 surcharge shall be collected:  on each 
        fee charged under subdivision 1, clauses (1) and (6), and for 
        each abstract certificate under subdivision 1, clause (4).  
        Fifty cents of each surcharge shall be retained by the county to 
        cover its administrative costs, 50 cents shall be appropriated 
        to the legislative coordinating commission for the task force on 
        electronic real estate recording created by Laws 2000, chapter 
        391, and $4 shall be paid to the state treasury and credited to 
        the general fund. 
           [EFFECTIVE DATE.] This section is effective only between 
        August 1, 2001, and June 30, 2003. 
           Sec. 78.  Minnesota Statutes 2000, section 403.11, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [EMERGENCY TELEPHONE SERVICE FEE.] (a) Each 
        customer of a telephone company or communications carrier that 
        provides 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 minimum 911 emergency telephone 
        service, plus administrative and staffing costs of the 
        department of administration related to managing the 911 
        emergency telephone service program.  Recurring charges by a 
        public utility providing telephone service for updating the 
        information required by section 403.07, subdivision 3, must be 
        paid by the commissioner of administration if the utility is 
        included in an approved 911 plan and the charges have been 
        certified and approved under subdivision 3.  The commissioner of 
        administration shall transfer an amount equal to two cents a 
        month from the fee assessed under this section on cellular and 
        other nonwire access services to the commissioner of public 
        safety 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 cellular phones.  Money remaining in 
        the 911 emergency telephone 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 
        telephone services.  The improvements may include providing 
        access to minimum 911 service for telephone 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. 
           (b) The fee may not be less than eight cents nor more than 
        30 is 27 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.  The 
        fee must be the same for all customers.  
           (c) The fee must be collected by each company or carrier 
        providing service 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 telephone service account in the special revenue 
        fund.  The money in the account may only be used for 911 
        telephone services as provided in paragraph (a).  
           (d) The commissioner of administration, with the approval 
        of the commissioner of finance, shall establish the amount of 
        the fee within the limits specified and inform the companies and 
        carriers of the amount to be collected.  Companies and carriers 
        must be given a minimum of 45 days' notice of fee changes. 
           (e) This subdivision does not apply to customers of a 
        telecommunications carrier as defined in section 237.01, 
        subdivision 6. 
           Sec. 79.  Minnesota Statutes 2000, section 473.13, is 
        amended by adding a subdivision to read: 
           Subd. 1c.  [REPORT ON CONSULTANTS.] The annual budget must 
        list by contract or project, expenditures for consultants and 
        professional, technical, and other similar services for the 
        preceding fiscal year and those proposed or anticipated in the 
        next year.  The council shall consult with the state auditor and 
        the legislative auditor on how to coherently and effectively 
        communicate in the budget information on professional services 
        contracts, including a detailed description of the: 
           (1) methods the council used to obtain consultant services; 
           (2) criteria used by the council to award the contract; 
           (3) number of consultants who sought the contract; 
           (4) total cost of the contract; 
           (5) duration of the contract; and 
           (6) source of the funds used to pay for the contract. 
           Sec. 80.  [473.246] [LEGISLATIVE COMMISSION ON METROPOLITAN 
        GOVERNMENT; REVIEW.] 
           The metropolitan council shall submit to the legislative 
        commission on metropolitan government information on the 
        council's tax rates and dollar amounts levied for the current 
        year, proposed property tax rates and levies, operating and 
        capital budgets, work program, capital improvement program, and 
        any other information requested by the commission, for review by 
        the legislative commission, as provided in section 3.8841. 
           Sec. 81.  Minnesota Statutes 2000, section 517.08, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  [TERM OF LICENSE; FEE; PREMARITAL EDUCATION.] 
        (a) The court administrator shall examine upon oath the party 
        applying for a license relative to the legality of the 
        contemplated marriage.  If at the expiration of a five-day 
        period, on being satisfied that there is no legal impediment to 
        it, including the restriction contained in section 259.13, the 
        court administrator shall issue the license, containing the full 
        names of the parties before and after marriage, and county and 
        state of residence, with the district court seal attached, and 
        make a record of the date of issuance.  The license shall be 
        valid for a period of six months.  In case of emergency or 
        extraordinary circumstances, a judge of the district court of 
        the county in which the application is made, may authorize the 
        license to be issued at any time before the expiration of the 
        five days.  Except as provided in paragraph (b), the court 
        administrator shall collect from the applicant a fee of $70 for 
        administering the oath, issuing, recording, and filing all 
        papers required, and preparing and transmitting to the state 
        registrar of vital statistics the reports of marriage required 
        by this section.  If the license should not be used within the 
        period of six months due to illness or other extenuating 
        circumstances, it may be surrendered to the court administrator 
        for cancellation, and in that case a new license shall issue 
        upon request of the parties of the original license without 
        fee.  A court administrator who knowingly issues or signs a 
        marriage license in any manner other than as provided in this 
        section shall pay to the parties aggrieved an amount not to 
        exceed $1,000. 
           (b) The marriage license fee for parties who have completed 
        at least 12 hours of premarital education is $20.  In order to 
        qualify for the reduced fee, the parties must submit a signed 
        and dated statement from the person who provided the premarital 
        education confirming that it was received.  The premarital 
        education must be provided by a licensed or ordained minister or 
        the minister's designee, a person authorized to solemnize 
        marriages under section 517.18, or a person authorized to 
        practice marriage and family therapy under section 148B.33.  The 
        education must include the use of a premarital inventory and the 
        teaching of communication and conflict management skills.  
           (c) The statement from the person who provided the 
        premarital education under paragraph (b) must be in the 
        following form:  
           "I, (name of educator), confirm that (names of both 
        parties) received at least 12 hours of premarital education that 
        included the use of a premarital inventory and the teaching of 
        communication and conflict management skills.  I am a licensed 
        or ordained minister, a person authorized to solemnize marriages 
        under Minnesota Statutes, section 517.18, or a person licensed 
        to practice marriage and family therapy under Minnesota 
        Statutes, section 148B.33." 
           The names of the parties in the educator's statement must 
        be identical to the legal names of the parties as they appear in 
        the marriage license application.  Notwithstanding section 
        138.17, the educator's statement must be retained for seven 
        years, after which time it may be destroyed.  
           (b) (d) If section 259.13 applies to the request for a 
        marriage license, the court administrator shall grant the 
        marriage license without the requested name change.  
        Alternatively, the court administrator may delay the granting of 
        the marriage license until the party with the conviction: 
           (1) certifies under oath that 30 days have passed since 
        service of the notice for a name change upon the prosecuting 
        authority and, if applicable, the attorney general and no 
        objection has been filed under section 259.13; or 
           (2) provides a certified copy of the court order granting 
        it.  The parties seeking the marriage license shall have the 
        right to choose to have the license granted without the name 
        change or to delay its granting pending further action on the 
        name change request. 
           Sec. 82.  Minnesota Statutes 2000, section 517.08, 
        subdivision 1c, as amended by Laws 2001, chapter 7, section 84, 
        is amended to read: 
           Subd. 1c.  [DISPOSITION OF LICENSE FEE.] (a) Of the 
        marriage license fee collected pursuant to subdivision 
        1b, paragraph (a), $15 must be retained by the county.  The 
        court administrator shall must pay $55 to the state treasurer to 
        be deposited as follows: 
           (1) $50 in the general fund; 
           (2) $3 in the special revenue fund to be appropriated to 
        the commissioner of children, families, and learning for 
        parenting time centers under section 119A.37; and 
           (3) $2 in the special revenue fund to be appropriated to 
        the commissioner of health for developing and implementing the 
        MN ENABL program under section 145.9255. 
           (b) Of the $20 fee under subdivision 1b, paragraph (b), $15 
        must be retained by the county.  The state court administrator 
        must pay $5 to the state treasurer to be distributed as provided 
        in paragraph (a), clauses (2) and (3). 
           Sec. 83.  Minnesota Statutes 2000, section 574.26, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TERMS.] Except as provided in sections 574.263 
        and 574.264 or if the amount of the contract is $10,000 $75,000 
        or less, a contract with a public body for the doing of any 
        public work is not valid unless the contractor gives (1) a 
        performance bond to the public body with whom the contractor 
        entered into the contract, for the use and benefit of the public 
        body to complete the contract according to its terms, and 
        conditioned on saving the public body harmless from all costs 
        and charges that may accrue on account of completing the 
        specified work, and (2) a payment bond for the use and benefit 
        of all persons furnishing labor and materials engaged under, or 
        to perform the contract, conditioned for the payment, as they 
        become due, of all just claims for the labor and materials.  
        Reasonable attorneys' fees, costs, and disbursements may be 
        awarded in an action to enforce claims under the act if the 
        action is successfully maintained or successfully appealed.  
           Sec. 84.  Minnesota Statutes 2000, section 645.44, is 
        amended by adding a subdivision to read: 
           Subd. 15a.  [MUST.] "Must" is mandatory. 
           Sec. 85.  Laws 1997, chapter 202, article 2, section 61, as 
        amended by Laws 1999, chapter 250, article 1, section 106, is 
        amended to read: 
           Sec. 61.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
           Appointing authorities in state government may allow each 
        employee to take an unpaid leave of absence for up to 160 hours 
        during the period ending June 30, 2001 2005.  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 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.  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 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 applicable 
        provisions of collective bargaining agreements and compensation 
        plans. 
           Sec. 86.  Laws 1998, chapter 366, section 80, 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 of St. Paul, 
        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. 87.  Laws 1999, chapter 250, article 1, section 12, 
        subdivision 3, as amended by Laws 2000, chapter 488, article 12, 
        section 1, subdivision 1, is amended to read: 
        Subd. 3.  Office of Technology
             5,499,000      2,707,000
        The commissioner of administration 
        shall develop and submit to the chairs 
        of the senate governmental operations 
        budget division and the house state 
        government finance committee by January 
        15, 2000, a long-range plan identifying 
        the mission and goals of the office of 
        technology.  The appropriation for the 
        second year is not available until the 
        plan has been approved by a law enacted 
        at the 2000 regular session. 
                      Summary by Fund
        General               5,071,000     2,707,000
        State Government 
        Special Revenue         168,000          -0- 
        Workers'
        Compensation            260,000          -0- 
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Administrative Services
             2,871,000      2,707,000
        $468,000 the first year and $468,000 
        the second year are for ongoing costs 
        of the North Star II project under 
        Minnesota Statutes, section 16E.07. 
        (b) One-Stop Business Licensing
        $500,000 the first year is a one-time 
        appropriation for the one-stop business 
        licensing system project under 
        Minnesota Statutes, section 16E.08.  
        The commissioner shall report on the 
        progress of this project to the chairs 
        of the legislative committees 
        responsible for this budget item by 
        January 15, 2000, and 2001. Before the 
        system is put into operation, the 
        security information technology project 
        of the commissioner of administration 
        shall perform a security audit of the 
        system and submit a report on the audit 
        to the chairs of the governmental 
        operations budget division of the 
        senate and the state government finance 
        committee of the house of 
        representatives. 
        (c) Small Agency Infrastructure 
                      Summary by Fund
        General               1,700,000          -0-  
        State Government 
        Special Revenue         168,000          -0- 
        Workers'
        Compensation            260,000          -0- 
        This appropriation is for a one-time 
        transfer to eligible small agencies for 
        the small agency infrastructure 
        project.  The commissioner of 
        administration shall determine 
        priorities for which projects should be 
        funded, except that $323,000 is for the 
        public utilities commission.  An agency 
        whose strategic plan for information 
        technology was not approved before 
        April 1, 1999, may not receive money 
        from this appropriation.  This 
        appropriation is available until June 
        30, 2003.  The commissioner shall 
        report on the progress of this project 
        to the chairs of the legislative 
        committees responsible for this budget 
        item by January 15, 2000, 2001, and 
        2002. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 88.  [APPLICATION.] 
           Sections 79 and 80 apply in the counties of Anoka, Carver, 
        Dakota, Hennepin, Ramsey, Scott, and Washington.  
           Sec. 89.  [INITIAL BOARD.] 
           The initial board of Northern Technology, Inc. consists of 
        the president of Pine Technical College and one member of each 
        of the governing bodies of Carlton, Chisago, Isanti, Kanabec, 
        and Pine counties, appointed by the governing bodies.  Members 
        of the initial board must be appointed within 30 days of the 
        effective date of this act and must adopt bylaws within 30 days 
        of the appointment of the last board member appointed under this 
        section.  Any additional board members required under the bylaws 
        or Minnesota Statutes, section 116T.02, subdivision 3, must take 
        office or be appointed within 30 days after the adoption of 
        bylaws under this section. 
           Sec. 90.  [HIAWATHA AVENUE LIGHT RAIL TRANSIT COST 
        CALCULATION.] 
           (a) The office of the legislative auditor shall prepare a 
        complete accounting of all federal, state, and local costs 
        relating to the Hiawatha avenue light rail transit line.  The 
        cost accounting must include: 
           (1) planning, environmental studies, and preliminary and 
        final design and engineering for the project; 
           (2) construction and other capital costs of the light rail 
        transit line when completed; 
           (3) improvements and repairs to and reconstruction of state 
        and local streets and highways incurred and anticipated as a 
        result of the project; 
           (4) all costs of utility relocation resulting from the 
        project; 
           (5) all costs incurred by the department of transportation 
        with respect to public information and communications about the 
        project; 
           (6) construction, acquisition, or lease of park-and-ride 
        facilities that would serve project riders, including costs of 
        relocating other public facilities to make room for those 
        park-and-ride facilities; 
           (7) projected costs of connecting the Hiawatha avenue light 
        rail transit line with commuter rail facilities; 
           (8) any costs necessitated by the project and included in 
        the project budget for the reconstruction of marked trunk 
        highway No. 55, to the extent not included under clause (3); and 
           (9) all public costs relating to the acquisition of real 
        property for the line and for the purchase and development of 
        real property adjacent to the project right-of-way. 
           (b) The legislative auditor shall submit an interim report 
        of the cost accounting to the legislature by March 1, 2002, and 
        shall submit a final report to the legislature by March 1, 2003. 
           Sec. 91.  [JESSE JAMES DAYS BLEACHERS.] 
           Notwithstanding Minnesota Statutes, section 16B.616, 
        subdivisions 3 and 4, the defeat of Jesse James committee, a 
        nonprofit corporation located in Northfield, Minnesota, need not 
        provide a signed certificate of compliance with bleacher safety 
        standards before January 1, 2003, with respect to bleachers 
        erected by the committee before August 1, 1999, for use during 
        the defeat of Jesse James days celebration week.  
           Sec. 92.  [PAY EQUITY STUDY.] 
           The commissioner of employee relations shall convene a work 
        group to examine the practices and progress of the local 
        government pay equity act.  The commissioner must report the 
        findings of the group to the legislature by January 15, 2002.  
           Sec. 93.  [SHALL/MUST.] 
           The revisor of statutes, in consultation with the directors 
        of house research and senate counsel and research, must report 
        to the house of representatives and senate rules committees and 
        the legislative coordinating commission by November 1, 2001, on 
        a proposal to change "shall" to "must" in Minnesota Statutes.  
           Sec. 94.  [LOCATING STATE AGENCIES.] 
           It is the policy of the Minnesota legislature to ensure 
        that state government services are available to all people of 
        our state. 
           Therefore, the office of strategic and long-range planning, 
        in cooperation with the departments of administration and 
        finance, shall develop criteria for the proper location of state 
        agencies or parts of state agencies.  The purpose of these 
        criteria will be to evaluate the advantages and disadvantages of 
        proposals to relocate and decentralize state services and 
        facilities. 
           The office shall report its recommendations to the senate 
        finance committee, senate capital investment committee, house 
        ways and means committee, and house capital investment committee 
        by January 15, 2002. 
           Sec. 95.  [RATIFICATIONS.] 
           Subdivision 1.  [UNREPRESENTED MANAGERS; MINNESOTA STATE 
        COLLEGES AND UNIVERSITIES.] The amendments to the plan for 
        administrators of the Minnesota state colleges and universities, 
        approved by the legislative coordinating commission subcommittee 
        on employee relations on July 21, 2000, are ratified. 
           Subd. 2.  [SALARIES FOR HEADS OF STATE AGENCIES.] The 
        proposal to increase the salaries of certain heads of state 
        agencies, approved by the legislative coordinating commission 
        subcommittee on employee relations on July 21, 2000, is ratified.
           Subd. 3.  [ENGINEERS.] The arbitration award and labor 
        agreement between the state of Minnesota and the Minnesota 
        government engineers council, approved by the legislative 
        coordinating commission subcommittee on employee relations on 
        September 8, 2000, are ratified. 
           Subd. 4.  [SALARIES FOR CERTAIN HEADS OF STATE 
        AGENCIES.] The proposals to increase the salaries of the 
        directors of the state board of investment and the teachers 
        retirement association, as approved by the legislative 
        coordinating commission subcommittee on employee relations on 
        September 8, 2000, are ratified. 
           [EFFECTIVE DATE.] This section is effective retroactively 
        to May 21, 2001. 
           Sec. 96.  [REVISOR'S INSTRUCTION.] 
           The revisor of statutes shall renumber Minnesota Statutes, 
        section 16B.88, as Minnesota Statutes, section 4.50. 
           Sec. 97.  [TRANSFERS.] 
           The office of citizenship and volunteer services is 
        transferred from the department of administration to the office 
        of the governor according to Minnesota Statutes, section 15.039. 
           Sec. 98.  [WORK PLAN APPROPRIATIONS.] 
           (a) $650,000 is appropriated from the surcharge collected 
        under Minnesota Statutes, section 357.18, subdivision 3, to the 
        legislative coordinating commission, to be made available to the 
        real estate task force established in accordance with Laws 2000, 
        chapter 391, for the expenses of the task force in carrying out 
        the work plan as described in the January 15, 2001, task force 
        report to the legislature.  This appropriation is available 
        until June 30, 2003, and is to be administered at the direction 
        of the chair of the task force, subject to the prior approval of 
        the task force. 
           (b) $500,000 is appropriated from the surcharge collected 
        under Minnesota Statutes, section 357.18, subdivision 3, to the 
        legislative coordinating commission, to be made available to the 
        task force for the development and implementation of pilot 
        electronic real estate projects in diverse counties as described 
        in the January 15, 2001, task force report to the legislature.  
        This appropriation is available until June 30, 2003. 
           Sec. 99.  [LEGISLATIVE COORDINATING COMMISSION; DUTIES; 
        APPROPRIATION.] 
           (a) The real estate task force established under Laws 2000, 
        chapter 391, may contract with the legislative coordinating 
        commission for the provision of administrative services to, the 
        preparation of requests for proposal, or the disbursement of 
        funds for the payment of vendors, salaries, and other expenses 
        of the task force. 
           (b) $50,000 is appropriated from the surcharge collected 
        under Minnesota Statutes, section 357.18, subdivision 3, to the 
        legislative coordinating commission for the purpose of paragraph 
        (a). 
           Sec. 100.  [DONATIONS.] 
           The real estate task force established under Laws 2000, 
        chapter 391, may accept donations of money or resources, 
        including loaned employees or other services.  The donations 
        must be under the sole control of the task force. 
           Sec. 101.  [LEGISLATIVE AND EXECUTIVE BRANCH ASSISTANCE.] 
           Whenever possible, legislative employees and agencies in 
        the executive branch shall assist the real estate task force 
        established under Laws 2000, chapter 391, in carrying out its 
        duties. 
           Sec. 102.  [REPEALER.] 
           (a) Minnesota Statutes 2000, sections 16E.08; 129D.06; and 
        179A.07, subdivision 7, are repealed. 
           (b) Minnesota Statutes 2000, sections 16A.67; 16A.6701; and 
        246.18, subdivision 7, are repealed. 
           (c) Minnesota Statutes 2000, section 43A.18, subdivision 5, 
        is repealed. 
           [EFFECTIVE DATE.] Paragraph (b) of this section is 
        effective December 31, 2001.  Paragraph (c) of this section is 
        effective the day following final enactment. 
           Sec. 103.  [EFFECTIVE DATE.] 
           Unless otherwise specified, this article is effective July 
        1, 2001. 

                                   ARTICLE 3  
                       VARIOUS ADMINISTRATIVE PROVISIONS
           Section 1.  Minnesota Statutes 2000, section 3A.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REFUND.] (1) (a) Any person former member who 
        has made contributions pursuant to under subdivision 1 and who 
        is no longer a member of the legislature is entitled to receive, 
        upon application to the director, a refund of all contributions 
        credited to the member's account with interest at an annual rate 
        of six percent compounded annually.  
           (2) (b) The refund of contributions as provided in clause 
        (1) terminates all rights of a former member of the legislature 
        or the survivors of the former member under this 
        chapter.  Should If the former member of the legislature 
        again be becomes a member of the legislature after having taken 
        a refund as provided above in paragraph (a), the member shall 
        must be considered a new member.  However, a new member may 
        reinstate the rights and credit for service forfeited, 
        provided if the new member repays all refunds taken plus 
        interest at an annual rate of 8.5 percent compounded annually.  
           (3) (c) No person shall may be required to apply for or 
        to accept a refund. 
           Sec. 2.  Minnesota Statutes 2000, section 11A.18, 
        subdivision 7, is amended to read: 
           Subd. 7.  [PARTICIPATION AND FINANCIAL REPORTING IN FUND.] 
        (a) Each participating public retirement fund or plan which has 
        transferred money to the state board for investment in the 
        postretirement investment fund shall have an undivided 
        participation in the fund.  The participation on any valuation 
        date shall must be determined by adding to the participation on 
        the prior valuation date:  (a) (1) funds transferred in 
        accordance with subdivision 6, (b); (2) the amount of required 
        investment income on its participation as defined in subdivision 
        9, clause (1)(c) paragraph (c), clause (1); and (c) (3) the 
        reserves for any benefit adjustment made as of the current 
        valuation date with the result adjusted for any mortality gains 
        or losses determined pursuant to under subdivision 11.  
           (b) The total fair market value of the postretirement fund 
        as of June 30 must be calculated in accordance with generally 
        accepted accounting principles.  The fair market value share of 
        each fund participating in the postretirement investment fund 
        must be allocated by adding to the fair market value at the 
        beginning of the fiscal year:  (1) 100 percent of the funds 
        transferred in accordance with subdivision 6; and (2) a pro rata 
        distribution of unrealized gains or losses, based on a weighted 
        percentage of participation at the end of each month of the 
        fiscal year. 
           Sec. 3.  [13.632] [TEACHERS RETIREMENT FUND ASSOCIATION 
        DATA; CERTAIN CITIES.] 
           Subdivision 1.  [BENEFICIARY AND SURVIVOR DATA.] The 
        following data on beneficiaries and survivors of the Minneapolis 
        teachers retirement fund association, the St. Paul teachers 
        retirement fund association, and the Duluth teachers retirement 
        fund association members are private data on individuals:  home 
        address, date of birth, direct deposit number, and tax 
        withholding data. 
           Subd. 2.  [LIMITS ON DISCLOSURE.] Required disclosure of 
        data about members, survivors, and beneficiaries is limited to 
        name, gross annuity or benefit amount, and type of annuity or 
        benefit awarded. 
           Sec. 4.  Minnesota Statutes 2000, section 352.01, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [INCLUDED EMPLOYEES.] (a) "State employee" 
        includes: 
           (1) employees of the Minnesota historical society; 
           (2) employees of the state horticultural society; 
           (3) employees of the Disabled American Veterans, Department 
        of Minnesota, Veterans of Foreign Wars, Department of Minnesota, 
        if employed before July 1, 1963; 
           (4) employees of the Minnesota crop improvement 
        association; 
           (5) employees of the adjutant general who are paid from 
        federal funds and who are not covered by any federal civilian 
        employees retirement system; 
           (6) employees of the Minnesota state colleges and 
        universities employed under the university or college activities 
        program; 
           (7) currently contributing employees covered by the system 
        who are temporarily employed by the legislature during a 
        legislative session or any currently contributing employee 
        employed for any special service as defined in subdivision 2b, 
        clause (8); 
           (8) employees of the armory building commission; 
           (9) employees of the legislature appointed without a limit 
        on the duration of their employment and persons employed or 
        designated by the legislature or by a legislative committee or 
        commission or other competent authority to conduct a special 
        inquiry, investigation, examination, or installation; 
           (10) trainees who are employed on a full-time established 
        training program performing the duties of the classified 
        position for which they will be eligible to receive immediate 
        appointment at the completion of the training period; 
           (11) employees of the Minnesota safety council; 
           (12) any employees on authorized leave of absence from the 
        transit operating division of the former metropolitan transit 
        commission who are employed by the labor organization which is 
        the exclusive bargaining agent representing employees of the 
        transit operating division; 
           (13) employees of the metropolitan council, metropolitan 
        parks and open space commission, metropolitan sports facilities 
        commission, metropolitan mosquito control commission, or 
        metropolitan radio board unless excluded or covered by another 
        public pension fund or plan under section 473.415, subdivision 
        3; 
           (14) judges of the tax court; 
           (15) personnel employed on June 30, 1992, by the University 
        of Minnesota in the management, operation, or maintenance of its 
        heating plant facilities, whose employment transfers to an 
        employer assuming operation of the heating plant facilities, so 
        long as the person is employed at the University of Minnesota 
        heating plant by that employer or by its successor organization; 
        and 
           (16) seasonal help in the classified service employed by 
        the department of revenue; and 
           (17) a person who renders teaching or other service for the 
        Minnesota state colleges and universities system and who also 
        renders service on a part-time basis for an employer with 
        employees covered by the general state employees retirement plan 
        of the Minnesota state retirement system, for all service with 
        the Minnesota state colleges and universities system, if the 
        person's nonteaching service comprises at least 50 percent of 
        the combined total salary received by the person as determined 
        by the chancellor of the Minnesota state colleges and 
        universities system or if the person is certified for general 
        state employees retirement plan coverage by the chancellor of 
        the Minnesota state colleges and universities system. 
           (b) Employees specified in paragraph (a), clause (15), are 
        included employees under paragraph (a) if employer and employee 
        contributions are made in a timely manner in the amounts 
        required by section 352.04.  Employee contributions must be 
        deducted from salary.  Employer contributions are the sole 
        obligation of the employer assuming operation of the University 
        of Minnesota heating plant facilities or any successor 
        organizations to that employer. 
           Sec. 5.  Minnesota Statutes 2000, section 352.01, 
        subdivision 2b, is amended to read: 
           Subd. 2b.  [EXCLUDED EMPLOYEES.] "State employee" does not 
        include: 
           (1) elective state officers; 
           (2) students employed by the University of Minnesota, or 
        the state colleges and universities, and community colleges 
        unless approved for coverage by the board of regents or the 
        board of trustees of the Minnesota state colleges and 
        universities, as the case may be; 
           (3) (2) employees who are eligible for membership in the 
        state teachers retirement association, except employees of the 
        department of children, families, and learning who have chosen 
        or may choose to be covered by the general state employees 
        retirement plan of the Minnesota state retirement system instead 
        of the teachers retirement association; 
           (4) (3) employees of the University of Minnesota who are 
        excluded from coverage by action of the board of regents; 
           (5) (4) officers and enlisted personnel in the national 
        guard and the naval militia who are assigned to permanent 
        peacetime duty and who under federal law are or are required to 
        be members of a federal retirement system; 
           (6) (5) election officers; 
           (7) (6) persons who are engaged in public work for the 
        state but who are employed by contractors when the performance 
        of the contract is authorized by the legislature or other 
        competent authority; 
           (8) (7) officers and employees of the senate and, or of the 
        house of representatives, or of a legislative committee or 
        commission who are temporarily employed; 
           (9) (8) receivers, jurors, notaries public, and court 
        employees who are not in the judicial branch as defined in 
        section 43A.02, subdivision 25, except referees and adjusters 
        employed by the department of labor and industry; 
           (10) (9) patient and inmate help in state charitable, 
        penal, and correctional institutions including the Minnesota 
        veterans home; 
           (11) (10) persons who are employed for professional 
        services where the service is incidental to their regular 
        professional duties and whose compensation is paid on a per diem 
        basis; 
           (12) (11) employees of the Sibley House Association; 
           (13) (12) the members of any state board or commission who 
        serve the state intermittently and are paid on a per diem basis; 
        the secretary, secretary-treasurer, and treasurer of those 
        boards if their compensation is $5,000 or less per year, or, if 
        they are legally prohibited from serving more than three years; 
        and the board of managers of the state agricultural society and 
        its treasurer unless the treasurer is also its full-time 
        secretary; 
           (14) (13) state troopers; 
           (15) (14) temporary employees of the Minnesota state fair 
        who are employed on or after July 1 for a period not to extend 
        beyond October 15 of that year; and persons who are employed at 
        any time by the state fair administration for special events 
        held on the fairgrounds; 
           (16) (15) emergency employees who are in the classified 
        service; except that if an emergency employee, within the same 
        pay period, becomes a provisional or probationary employee on 
        other than a temporary basis, the employee shall be considered a 
        "state employee" retroactively to the beginning of the pay 
        period; 
           (17) (16) persons who are described in section 352B.01, 
        subdivision 2, clauses (2) to (5); 
           (18) (17) temporary employees in the classified service, 
        and temporary employees in the unclassified service who are 
        appointed for a definite period of not more than six months 
        and who are employed less than six months in any one-year 
        period; 
           (19) (18) trainee employees, except those listed in 
        subdivision 2a, clause (10); 
           (20) (19) persons whose compensation is paid on a fee 
        basis; 
           (21) (20) state employees who are employed by the board of 
        trustees of the Minnesota state colleges and universities in 
        unclassified positions enumerated in section 43A.08, subdivision 
        1, clause (9); 
           (21) state employees who in any year have credit for 12 
        months service as teachers in the public schools of the state 
        and as teachers are members of the teachers retirement 
        association or a retirement system in St. Paul, Minneapolis, or 
        Duluth; 
           (22) employees of the adjutant general who are employed on 
        an unlimited intermittent or temporary basis in the 
        classified and or unclassified service for the support of army 
        and air national guard training facilities; 
           (23) chaplains and nuns who are excluded from coverage 
        under the federal Old Age, Survivors, Disability, and Health 
        Insurance Program for the performance of service as specified in 
        United States Code, title 42, section 410(a)(8)(A), as amended, 
        if no irrevocable election of coverage has been made under 
        section 3121(r) of the Internal Revenue Code of 1986, as amended 
        through December 31, 1992; 
           (24) examination monitors who are employed by departments, 
        agencies, commissions, and boards to conduct examinations 
        required by law; 
           (25) persons who are appointed to serve as members of 
        fact-finding commissions or adjustment panels, arbitrators, or 
        labor referees under chapter 179; 
           (26) temporary employees who are employed for limited 
        periods under any state or federal program for training or 
        rehabilitation, including persons who are employed for limited 
        periods from areas of economic distress except, but not 
        including skilled and supervisory personnel and persons having 
        civil service status covered by the system; 
           (27) full-time students who are employed by the Minnesota 
        historical society intermittently during part of the year and 
        full-time during the summer months; 
           (28) temporary employees, who are appointed for not more 
        than six months, of the metropolitan council and of any of its 
        statutory boards, if the board members are appointed by the 
        metropolitan council; 
           (29) persons who are employed in positions designated by 
        the department of employee relations as student workers; 
           (30) members of trades who are employed by the successor to 
        the metropolitan waste control commission with, who have trade 
        union pension plan coverage under a collective bargaining 
        agreement, and who are first employed after June 1, 1977; 
           (31) persons who are employed in subsidized on-the-job 
        training, work experience, or public service employment as 
        enrollees under the federal Comprehensive Employment and 
        Training Act after March 30, 1978, unless the person has as of 
        the later of March 30, 1978, or the date of employment 
        sufficient service credit in the retirement system to meet the 
        minimum vesting requirements for a deferred annuity, or the 
        employer agrees in writing on forms prescribed by the director 
        to make the required employer contributions, including any 
        employer additional contributions, on account of that person 
        from revenue sources other than funds provided under the federal 
        Comprehensive Employment and Training Act, or the person agrees 
        in writing on forms prescribed by the director to make the 
        required employer contribution in addition to the required 
        employee contribution; 
           (32) off-duty peace officers while employed by the 
        metropolitan council; 
           (33) persons who are employed as full-time police officers 
        by the metropolitan council and as police officers are members 
        of the public employees police and fire fund; 
           (34) persons who are employed as full-time firefighters by 
        the department of military affairs and as firefighters are 
        members of the public employees police and fire fund; 
           (35) foreign citizens with a work permit of less than three 
        years, or an H-1b/JV visa valid for less than three years of 
        employment, unless notice of extension is supplied which allows 
        them to work for three or more years as of the date the 
        extension is granted, in which case they are eligible for 
        coverage from the date extended; and 
           (36) persons who are employed by the board of trustees of 
        the Minnesota state colleges and universities and who elect to 
        remain members of the public employees retirement association or 
        the Minneapolis employees retirement fund, whichever applies, 
        under section 136C.75.  
           Sec. 6.  Minnesota Statutes 2000, section 352.113, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MEDICAL OR PSYCHOLOGICAL EXAMINATIONS; 
        AUTHORIZATION FOR PAYMENT OF BENEFIT.] An applicant shall 
        provide medical or psychological evidence to support an 
        application for total and permanent disability.  The director 
        shall have the employee examined by at least one additional 
        licensed chiropractor, physician, or psychologist designated by 
        the medical adviser.  The chiropractors, physicians, or 
        psychologists shall make written reports to the director 
        concerning the employee's disability including medical opinions 
        as to whether the employee is permanently and totally disabled 
        within the meaning of section 352.01, subdivision 17.  The 
        director shall also obtain written certification from the 
        employer stating whether the employment has ceased or whether 
        the employee is on sick leave of absence because of a disability 
        that will prevent further service to the employer and as a 
        consequence the employee is not entitled to compensation from 
        the employer.  The medical adviser shall consider the reports of 
        the physicians, psychologists, and chiropractors and any other 
        evidence supplied by the employee or other interested parties.  
        If the medical adviser finds the employee totally and 
        permanently disabled, the adviser shall make appropriate 
        recommendation to the director in writing together with the date 
        from which the employee has been totally disabled.  The director 
        shall then determine if the disability occurred within 180 days 
        of filing the application, while still in the employment of the 
        state, and the propriety of authorizing payment of a disability 
        benefit as provided in this section.  A terminated employee may 
        apply for a disability benefit within 180 days of termination as 
        long as the disability occurred while in the employment of the 
        state.  The fact that an employee is placed on leave of absence 
        without compensation because of disability does not bar that 
        employee from receiving a disability benefit.  Unless payment of 
        a disability benefit has terminated because the employee is no 
        longer totally disabled, or because the employee has reached 
        normal retirement age as provided in this section, the 
        disability benefit shall cease with the last payment received by 
        the disabled employee or which had accrued during the lifetime 
        of the employee unless there is a spouse surviving; in that 
        event the surviving spouse is entitled to the disability benefit 
        for the calendar month in which the disabled employee died. 
           Sec. 7.  Minnesota Statutes 2000, section 352.113, 
        subdivision 6, is amended to read: 
           Subd. 6.  [REGULAR MEDICAL OR PSYCHOLOGICAL EXAMINATIONS.] 
        At least once each year during the first five years following 
        the allowance of a disability benefit to any employee, and at 
        least once in every three-year period thereafter, the director 
        may require any disabled employee to undergo a medical or 
        psychological examination.  The examination must be made at the 
        place of residence of the employee, or at any place mutually 
        agreed upon, by a physician or physicians designated by the 
        medical adviser and engaged by the director.  If any examination 
        indicates to the medical adviser that the employee is no longer 
        permanently and totally disabled, or is engaged in or can engage 
        in a gainful occupation, payments of the disability benefit by 
        the fund must be discontinued.  The payments shall discontinue 
        as soon as the employee is reinstated to the payroll following 
        sick leave, but in no case shall payment be made for more than 
        60 days after the medical adviser finds that the employee is no 
        longer permanently and totally disabled. 
           Sec. 8.  Minnesota Statutes 2000, section 352.22, 
        subdivision 8, is amended to read: 
           Subd. 8.  [REFUND SPECIFICALLY LIMITED.] If a former 
        employee covered by the system does not apply for refund within 
        five years after the last deduction was taken from salary for 
        the retirement fund, and does not have enough service to qualify 
        for a deferred annuity, accumulated contributions must be 
        credited to and become a part of the retirement fund.  If the 
        former employee returns to state service and becomes a state 
        employee covered by the system, the amount credited to the 
        retirement fund, if more than $2 $25, shall must be restored to 
        the individual account.  If the amount credited to the fund is 
        over $2 $25 and the former employee applies for refund or an 
        annuity under section 352.72, the amount must be restored to the 
        former employee's individual account and a refund made or an 
        annuity paid, whichever applies. 
           Sec. 9.  Minnesota Statutes 2000, section 352.87, 
        subdivision 4, is amended to read: 
           Subd. 4.  [NON-JOB-RELATED DISABILITY BENEFITS.] An 
        eligible member described in subdivision 1, who is less than 55 
        years of age and who becomes disabled and physically or mentally 
        unfit to perform the duties of the position because of sickness 
        or injury while not engaged in covered employment, is entitled 
        to a disability benefit amount equivalent to an annuity computed 
        under subdivision 3 assuming the member has 15 years of service 
        qualifying under this section and waiving the minimum age 
        requirement.  If the eligible member becomes disabled under this 
        subdivision with more than 15 years of service covered under 
        this section, the eligible member is entitled to a disability 
        benefit amount equivalent to an annuity computed under 
        subdivision 3 based on all years of service credited under this 
        section and waiving the minimum age requirement. 
           Sec. 10.  Minnesota Statutes 2000, section 352.87, 
        subdivision 5, is amended to read: 
           Subd. 5.  [JOB-RELATED DISABILITY BENEFITS.] An eligible 
        member defined in subdivision 1, who is less than 55 years of 
        age and who becomes disabled and physically or mentally unfit to 
        perform the duties of the position because of sickness or injury 
        while engaged in covered employment, is entitled to a disability 
        benefit amount equivalent to an annuity computed under 
        subdivision 3 assuming the member has 20 years of service 
        qualifying under this section and waiving the minimum age 
        requirement.  An eligible member who becomes disabled under this 
        subdivision with more than 20 years of service credited under 
        this section is entitled to a disability benefit amount 
        equivalent to an annuity computed under subdivision 3 based on 
        all years of service credited under this section and waiving the 
        age requirement. 
           Sec. 11.  Minnesota Statutes 2000, section 352.95, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MEDICAL OR PSYCHOLOGICAL EVIDENCE.] (a) An 
        applicant shall provide medical or psychological evidence to 
        support an application for disability benefits.  The director 
        shall have the employee examined by at least one additional 
        licensed physician or psychologist designated by the medical 
        adviser.  The physicians shall make written reports to the 
        director concerning the employee's disability, including medical 
        opinions as to whether the employee is disabled within the 
        meaning of this section.  The director shall also obtain written 
        certification from the employer stating whether the employee is 
        on sick leave of absence because of a disability that will 
        prevent further service to the employer, and as a consequence 
        the employee is not entitled to compensation from the employer.  
           (b) If on considering the physicians' reports and any other 
        evidence supplied by the employee or others, the medical adviser 
        finds the employee disabled within the meaning of this section, 
        the advisor shall make appropriate recommendation to the 
        director in writing, together with the date from which the 
        employee has been disabled.  The director shall then determine 
        the propriety of authorizing payment of a disability benefit as 
        provided in this section.  
           (c) Unless payment of a disability benefit has terminated 
        because the employee is no longer disabled, or because the 
        employee has reached age 62 65 or the five-year anniversary of 
        the effective date of the disability benefit, whichever is 
        later, the disability benefit shall cease with the last payment 
        received by the disabled employee or which had accrued during 
        the employee's lifetime.  While disability benefits are paid, 
        the director has the right at reasonable times to require the 
        disabled employee to submit proof of the continuance of the 
        disability claimed.  If any examination indicates to the medical 
        adviser that the employee is no longer disabled, the disability 
        payment must be discontinued upon reinstatement to state service 
        or within 60 days of the finding, whichever is sooner.  
           Sec. 12.  Minnesota Statutes 2000, section 352.95, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RETIREMENT STATUS AT NORMAL RETIREMENT AGE.] The 
        disability benefit paid to a disabled correctional employee 
        under this section shall terminate at the end of the month in 
        which the employee reaches age 62 65, or the five-year 
        anniversary of the effective date of the disability benefit, 
        whichever is later.  If the disabled correctional employee is 
        still disabled when the employee reaches age 62 65, or the 
        five-year anniversary of the effective date of the disability 
        benefit, whichever is later, the employee shall be deemed to be 
        a retired employee.  If the employee had elected an optional 
        annuity under subdivision 1a, the employee shall receive an 
        annuity in accordance with the terms of the optional annuity 
        previously elected.  If the employee had not elected an optional 
        annuity under subdivision 1a, the employee may within 90 days of 
        attaining age 65 or reaching the five-year anniversary of the 
        effective date of the disability benefit, whichever is later, 
        either elect to receive a normal retirement annuity computed in 
        the manner provided in section 352.93 or elect to receive an 
        optional annuity as provided in section 352.116, subdivision 3, 
        based on the same length of service as used in the calculation 
        of the disability benefit.  Election of an optional annuity must 
        be made within 90 days before attaining age 65 or reaching the 
        five-year anniversary of the effective date of the disability 
        benefit, whichever is later.  If an optional annuity is elected, 
        the optional annuity shall begin to accrue on the first of the 
        month following the month in which the employee reaches age 65 
        or the five-year anniversary of the effective date of the 
        disability benefit, whichever is later. 
           Sec. 13.  Minnesota Statutes 2000, section 352.95, 
        subdivision 7, is amended to read: 
           Subd. 7.  [RESUMPTION OF EMPLOYMENT.] If the disabled 
        employee resumes a gainful occupation from which earnings are 
        less than the salary received at the date of disability or the 
        salary currently paid for similar positions, or if the employee 
        is entitled to receive workers' compensation benefits work, the 
        disability benefit must be continued in an amount which when 
        added to current earnings and workers' compensation benefits 
        does not exceed the salary received at the date of disability or 
        the salary currently paid for similar positions, whichever is 
        higher, if the disability benefit in that case does not exceed 
        the disability benefit originally authorized and in effect rate 
        of the disabled employee at the date of disability as adjusted 
        by the same percentage increase in United States average wages 
        used by social security in calculating average indexed monthly 
        earnings for the same period. 
           Sec. 14.  Minnesota Statutes 2000, section 352B.01, 
        subdivision 11, is amended to read: 
           Subd. 11.  [AVERAGE MONTHLY SALARY.] "Average monthly 
        salary" means the average of the highest monthly salaries for 
        five years of service as a member.  Average monthly salary must 
        be based upon all allowable service if this service is less than 
        five years.  It does not include any lump-sum annual leave 
        payments and overtime payments made at the time of separation 
        from state service, any amounts of severance pay, or any reduced 
        salary paid during the period the person is entitled to workers' 
        compensation benefit payments for temporary disability.  A 
        member on leave of absence receiving temporary workers' 
        compensation payments and a reduced salary or no salary from the 
        employer who is entitled to allowable service credit for the 
        period of absence may make payment to the fund for the 
        difference between salary received, if any, and the salary the 
        member would normally receive if not on leave of absence during 
        the period.  The member shall pay an amount equal to the member 
        and employer contribution rate under section 352B.02, 
        subdivisions 1b and 1c, on the differential salary amount for 
        the period of the leave of absence.  The employing department, 
        at its option, may pay the employer amount on behalf of the 
        member.  Payment made under this subdivision must include 
        interest at the rate of 8.5 percent per year, and must be 
        completed within one year of the return from the leave of 
        absence. 
           Sec. 15.  Minnesota Statutes 2000, section 352B.10, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ANNUAL AND SICK LEAVE; WORK AT LOWER PAY.] No 
        member shall receive any disability benefit payment when the 
        member has unused annual leave or sick leave or under any other 
        circumstances, when during the period of disability there has 
        been no impairment of salary.  Should the member or former 
        member resume gainful work and earn less than the salary 
        received at the date of disability or the salary currently paid 
        for similar positions, the disability benefit must be continued 
        in an amount which when added to current earnings does not 
        exceed the salary rate received of the person at the date of 
        disability or the salary currently paid for similar positions, 
        whichever is higher.  The disability benefit must not exceed the 
        disability benefit originally allowed as adjusted by the same 
        percentage increase in United States average wages used by 
        social security in calculating average indexed monthly earnings 
        for the same period. 
           Sec. 16.  Minnesota Statutes 2000, section 352B.101, is 
        amended to read: 
           352B.101 [APPLICATION FOR DISABILITY BENEFIT.] 
           A member claiming a disability benefit must file a written 
        application for benefits in the office of the system in a form 
        and manner prescribed by the executive director.  The member 
        shall provide medical or psychological evidence to support the 
        application.  The benefit begins to accrue the day following the 
        start of disability or the day following the last day for which 
        the member was paid, whichever is later, but not earlier than 
        180 days before the date the application is filed with the 
        executive director. 
           Sec. 17.  Minnesota Statutes 2000, section 354.05, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TEACHER.] (a) "Teacher" means: 
           (1) a person who renders service as a teacher, supervisor, 
        principal, superintendent, librarian, nurse, counselor, social 
        worker, therapist, or psychologist in the public schools of the 
        state located outside of the corporate limits of the cities of 
        the first class or in the Minnesota state colleges and 
        universities system, or in any charitable, penal, or 
        correctional institutions of a governmental subdivision, or who 
        is engaged in educational administration in connection with the 
        state public school system, including the Minnesota state 
        colleges and universities system, but excluding the University 
        of Minnesota, whether the position be a public office or an 
        employment, not including members or officers of any general 
        governing or managing board or body; 
           (2) an employee of the teachers retirement association 
        unless the employee is covered by the Minnesota state retirement 
        system due to prior employment by that system; 
           (3) a person who renders teaching service on a part-time 
        basis and who also renders other services for a single employing 
        unit.  A person whose teaching service comprises at least 50 
        percent of the combined employment salary is a member of the 
        association for all services with the single employing unit.  If 
        the person's teaching service comprises less than 50 percent of 
        the combined employment salary, the executive director must 
        determine whether all or none of the combined service is covered 
        by the association.; or 
           (4) a person who is not covered by the plans established 
        under chapter 352D, 354A, or 354B and who is employed by the 
        board of trustees of the Minnesota state colleges and 
        universities system in an unclassified position as: 
           (i) a president, vice-president, or dean; 
           (ii) a manager or a professional in an academic or an 
        academic support program other than specified in item (i); 
           (iii) an administrative or a service support faculty 
        position; or 
           (iv) a teacher or a research assistant. 
           (b) Teacher does not mean: 
           (1) a person who works for a school or institution as an 
        independent contractor as defined by the Internal Revenue 
        Service; 
           (2) a person employed in subsidized on-the-job training, 
        work experience or public service employment as an enrollee 
        under the federal Comprehensive Employment and Training Act from 
        and after March 30, 1978, unless the person has, as of the later 
        of March 30, 1978, or the date of employment, sufficient service 
        credit in the retirement association to meet the minimum vesting 
        requirements for a deferred retirement annuity, or the employer 
        agrees in writing on forms prescribed by the executive director 
        to make the required employer contributions, including any 
        employer additional contributions, on account of that person 
        from revenue sources other than funds provided under the federal 
        Comprehensive Training and Employment Act, or the person agrees 
        in writing on forms prescribed by the executive director to make 
        the required employer contribution in addition to the required 
        employee contribution; 
           (3) a person holding a part-time adult supplementary 
        technical college license who renders part-time teaching service 
        or a customized trainer as defined by the Minnesota state 
        colleges and universities system in a technical college if (i) 
        the service is incidental to the regular nonteaching occupation 
        of the person; and (ii) the applicable technical college 
        stipulates annually in advance that the part-time teaching 
        service or customized training service will not exceed 300 hours 
        in a fiscal year and retains the stipulation in its records; and 
        (iii) the part-time teaching service or customized training 
        service actually does not exceed 300 hours in a fiscal year; or 
           (4) a person exempt from licensure under section 122A.30. 
           Sec. 18.  Minnesota Statutes 2000, section 354.52, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REPORTING AND REMITTANCE REQUIREMENTS.] An 
        employer shall remit all amounts due to the association and 
        furnish a statement indicating the amount due and transmitted 
        with any other information required by the executive director.  
        If an amount due is not received by the association within seven 
        14 calendar days of the payroll warrant, the amount accrues 
        interest at an annual rate of 8.5 percent compounded annually 
        from the due date until the amount is received by the 
        association.  All amounts due and other employer obligations not 
        remitted within 60 days of notification by the association must 
        be certified to the commissioner of finance who shall deduct the 
        amount from any state aid or appropriation amount applicable to 
        the employing unit. 
           Sec. 19.  Minnesota Statutes 2000, section 354A.011, 
        subdivision 24, is amended to read: 
           Subd. 24.  [SALARY; COVERED SALARY.] (a) "Salary" or 
        "covered salary" means the entire compensation, upon which 
        member contributions are required and made, that is paid to a 
        teacher before any allowable reductions permitted under the 
        federal Internal Revenue Code of 1986, as amended, for employee 
        selected fringe benefits, tax sheltered annuities, deferred 
        compensation, or any combination of these items deductions for 
        deferred compensation, supplemental retirement plans, or other 
        voluntary salary reduction programs. 
           (b) "Salary" does not mean: 
           (1) lump sum annual leave payments; 
           (2) lump sum wellness and sick leave payments; 
           (3) payments in lieu of any employer-paid group insurance 
        coverage employer-paid amounts used by an employee toward the 
        cost of insurance coverage, employer-paid fringe benefits, 
        flexible spending accounts, cafeteria plans, health care expense 
        accounts, day care expenses, or any payments in lieu of any 
        employer-paid group insurance coverage, including the difference 
        between single and family rates that may be paid to a member 
        with single coverage, and certain amounts determined by the 
        executive secretary or director to be ineligible; 
           (4) payments for the difference between single and family 
        premium rates that may be paid to a member with single 
        coverage any form of payment made in lieu of any other 
        employer-paid fringe benefit or expense; 
           (5) employer-paid fringe benefits including, but not 
        limited to, flexible spending accounts, cafeteria plans, health 
        care expense accounts, day care expenses, or automobile 
        allowances and expenses any form of severance payments; 
           (6) workers' compensation payments; 
           (7) disability insurance payments, including self-insured 
        disability payments; 
           (6) (8) payments to school principals and all other 
        administrators for services in addition to the normal work year 
        contract if these additional services are performed on an 
        extended duty day, Saturday, Sunday, holiday, annual leave day, 
        sick leave day, or any other nonduty day; 
           (7) (9) payments under section 356.24, subdivision 1, 
        clause (4)(ii); and 
           (8) (10) payments made under section 122A.40, subdivision 
        12, except for payments for sick leave accumulated under the 
        provisions of a uniform school district policy that applies 
        equally to all similarly situated persons in the district. 
           Sec. 20.  [354A.107] [PAYMENT ACCEPTANCE ALLOWED.] 
           The payment for the purchase of allowable service credit, 
        or the repayment of a prior refund, or the payment of equivalent 
        contributions for an eligible leave of absence, as permitted by 
        law, by a member of the Minneapolis teachers retirement fund 
        association, the St. Paul teachers retirement fund association, 
        or the Duluth teachers retirement fund association, may be made 
        with amounts transferred from a plan qualified under section 
        401(a), 401(k), 403(a), 403(b), or 457(b) of the federal 
        Internal Revenue Code of 1986, as amended from time to time, or 
        amounts transferred from an individual retirement account if 
        done solely in a manner that is eligible for treatment as a 
        nontaxable rollover under the applicable federal law.  The 
        rollover must be separately accounted for as member 
        contributions that were not previously taxed.  Before accepting 
        any transfers to which this section applies, the executive 
        secretary or director must require the member to provide written 
        documentation that the amounts to be transferred are eligible 
        for tax-free rollover and qualify for that treatment under the 
        federal Internal Revenue Code of 1986, as amended. 
           Sec. 21.  [354A.108] [PAYMENT BY TEACHERS COLLECTING 
        WORKERS' COMPENSATION.] 
           (a) A member of the Duluth teachers retirement fund 
        association who is receiving temporary workers' compensation 
        payments related to the member's teaching service and who either 
        is receiving a reduced salary from the employer or is receiving 
        no salary from the employer is entitled to receive allowable 
        service credit for the period of time that the member is 
        receiving the workers' compensation payments upon making the 
        required payment amount.  
           (b) The required amount payable by the member must be 
        calculated first by determining the differential salary amount, 
        which is the difference between the salary received, if any, 
        during the period of time that the member is collecting workers' 
        compensation payments, and the salary that the member received 
        for an identical length period immediately before collecting the 
        workers' compensation payments.  The member shall pay an amount 
        equal to the employee contribution rate under section 354A.12, 
        subdivision 1, multiplied by the differential salary amount.  
           (c) If the member makes the employee payment under this 
        section, the employing unit shall make an employer payment to 
        the Duluth teachers retirement fund association equal to the 
        employer contribution rate under section 354A.12, subdivision 
        2a, multiplied by the differential salary amount.  
           (d) Payments made under this subdivision are payable 
        without interest if paid by June 30 of the year during which the 
        workers' compensation payments are received by the member.  If 
        paid after June 30, payments made under this subdivision must 
        include interest at the rate of 8.5 percent per year.  Payment 
        under this section must be completed within one year of the 
        termination of the workers' compensation payments to the member. 
           Sec. 22.  Minnesota Statutes 2000, section 354A.12, 
        subdivision 5, is amended to read: 
           Subd. 5.  [EMPLOYEE REPORTING AND REMITTANCE REQUIREMENTS.] 
        (a) Each school district employing unit shall provide to the 
        appropriate teachers retirement fund association information the 
        following member data regarding all new or returning 
        employees on a form provided by the executive secretary or 
        director before the employee's first payroll date. in a format 
        approved by the executive secretary or director.  Data changes 
        and the dates of those changes must be reported to the 
        association on an ongoing basis for the payroll cycle in which 
        they occur.  Data on the member includes: 
           (1) legal name, address, date of birth, association member 
        number, employer-assigned employee number, and social security 
        number; 
           (2) association status, including, but not limited to, 
        basic, coordinated, exempt annuitant, exempt technical college 
        teacher, or exempt independent contractor or consultant; 
           (3) employment status, including, but not limited to, full 
        time, part time, intermittent, substitute, or part-time 
        mobility; 
           (4) employment position, including, but not limited to, 
        teacher, superintendent, principal, administrator, or other; 
           (5) employment activity, including, but not limited to, 
        hire, termination, resumption of employment, disability, or 
        death; 
           (6) leaves of absence; and 
           (7) other information as may be required by the association.
           (b) Each employing unit shall provide the following data to 
        the appropriate association for each payroll cycle in a format 
        approved by the executive secretary or director: 
           (1) an association member number; 
           (2) employer-assigned employee number; 
           (3) social security number; 
           (4) amount of each salary deduction; 
           (5) amount of salary as defined in section 354A.011, 
        subdivision 24, from which each deduction was made; 
           (6) reason for payment; 
           (7) service credit; 
           (8) the beginning and ending dates of the payroll period 
        covered and the date of actual payment; 
           (9) fiscal year of salary earnings; 
           (10) total remittance amount including employee, employer, 
        and employer additional contributions; and 
           (11) other information as may be required by the 
        association. 
           (c) On or before August 1 each year, each employing unit 
        must report to the appropriate association giving an itemized 
        summary for the preceding 12 months of the total amount that was 
        withheld from the salaries of teachers for deductions and all 
        other information required by the association. 
           (d) An employing unit that does not comply with the 
        reporting requirements under this section shall pay a fine of $5 
        per calendar day until the association receives the required 
        member data. 
           (e) An employing unit shall remit all amounts that are due 
        to the association and shall furnish for each pay period an 
        itemized statement indicating the total amount that is due and 
        is transmitted with any other information required by the 
        association.  All amounts due and other employer obligations 
        that are not remitted within 30 days of notification by the 
        association must be certified by the director or secretary to 
        the commissioner of finance, who shall deduct the amount from 
        any state aid or appropriation amount applicable to the 
        employing unit and shall transmit the deducted amount to the 
        applicable association. 
           Sec. 23.  Minnesota Statutes 2000, section 354A.31, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RESUMPTION OF TEACHING AFTER COMMENCEMENT OF A 
        RETIREMENT ANNUITY.] (a) Any person who retired and is receiving 
        a coordinated program retirement annuity under the provisions of 
        sections 354A.31 to 354A.41 or any person receiving a basic 
        program retirement annuity under the governing sections in the 
        articles of incorporation or bylaws and who has resumed teaching 
        service for the school district in which the teachers retirement 
        fund association exists is entitled to continue to receive 
        retirement annuity payments, except that annuity payments must 
        be reduced during the calendar year immediately following the 
        calendar year in which the person's income from the teaching 
        service is in an amount greater than the annual maximum earnings 
        allowable for that age for the continued receipt of full benefit 
        amounts monthly under the federal old age, survivors, and 
        disability insurance program as set by the secretary of health 
        and human services under United States Code, title 42, section 
        403.  The amount of the reduction must be one-third the amount 
        in excess of the applicable reemployment income maximum 
        specified in this subdivision and must be deducted from the 
        annuity payable for the calendar year immediately following the 
        calendar year in which the excess amount was earned.  If the 
        person has not yet reached the minimum age for the receipt of 
        social security benefits, the maximum earnings for the person 
        must be equal to the annual maximum earnings allowable for the 
        minimum age for the receipt of social security benefits. 
           (b) If the person is retired for only a fractional part of 
        the calendar year during the initial year of retirement, the 
        maximum reemployment income specified in this subdivision must 
        be prorated for that calendar year. 
           (c) After a person has reached the age of 70, no 
        reemployment income maximum is applicable regardless of the 
        amount of any compensation received for teaching service for the 
        school district in which the teachers retirement fund 
        association exists.  
           (d) The amount of the retirement annuity reduction must be 
        handled or disposed of as provided in section 356.58. 
           (e) For the purpose of this subdivision, income from 
        teaching service includes:  (i) all income for services 
        performed as a consultant or independent contractor; or income 
        resulting from working with the school district in any capacity; 
        and (ii) the greater of either the income received or an amount 
        based on the rate paid with respect to an administrative 
        position, consultant, or independent contractor in the school 
        district in which the teachers retirement fund association 
        exists and at the same level as the position occupied by the 
        person who resumes teaching service. 
           (f) On or before February 15 of each year, each applicable 
        employing unit shall report to the teachers retirement fund 
        association the amount of postretirement income as defined in 
        this subdivision, earned as a teacher, consultant, or 
        independent contractor during the previous calendar year by each 
        retiree of the teachers retirement fund association for teaching 
        service performed after retirement.  The report must be in a 
        format approved by the executive secretary or director. 
           Sec. 24.  Minnesota Statutes 2000, section 354A.35, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PAYMENT OF MINIMAL REFUND AND BENEFIT AMOUNTS.] 
        If a coordinated member or former coordinated member dies 
        without having designated a beneficiary or if the designated 
        beneficiary dies without there existing any other designated 
        beneficiary and prior to making application for the refund 
        credited to the deceased coordinated member or coordinated 
        former member, and if the amount of the refund does not 
        exceed $500 $1,500, the board in its discretion may, in absence 
        of probate proceedings, make payment 90 days after the date of 
        death of the coordinated member or former coordinated member to 
        the surviving spouse of the deceased coordinated member or 
        former coordinated member, or if none, to the next of kin as 
        determined under the laws of descent of the state.  A payment 
        under this subdivision shall be a bar to recovery by any other 
        person or persons.  Any retirement annuity in any amount which 
        has accrued at the time of the death of a coordinated retiree 
        may be paid by the board in its discretion using the procedure 
        set forth in this subdivision.  
           Sec. 25.  [356.866] [CONVERSION OF LUMP-SUM POSTRETIREMENT 
        AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 
           Subdivision 1.  [LUMP-SUM POSTRETIREMENT PAYMENT 
        CONVERSION.] For benefits paid after December 31, 2001, to 
        eligible persons under sections 356.86 and 356.865, the amount 
        of the most recent lump-sum benefit payable to an eligible 
        recipient under sections 356.86 and 356.865, must be divided by 
        12.  The result must be added to the monthly annuity or benefit 
        otherwise payable to an eligible recipient, must become a 
        permanent part of the benefit recipient's pension, and must be 
        included in any pension benefit subject to future increases. 
           Subd. 2.  [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 
        POSTRETIREMENT INVESTMENT FUND.] Public employee retirement 
        funds participating in the state board of investment 
        postretirement investment fund shall transfer the required 
        reserves for the postretirement conversion under subdivision 1 
        to the postretirement investment fund by January 31, 2002. 
           Sec. 26.  Minnesota Statutes 2000, section 356A.06, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INVESTMENT BUSINESS RECIPIENT DISCLOSURE.] The 
        chief administrative officer of a covered pension plan, with 
        respect to investments made by the plan, and the executive 
        director of the state board of investment, with respect to 
        investments of plan assets made by the board, shall annually 
        disclose in writing the recipients of investment business placed 
        with or investment commissions allocated among commercial banks, 
        investment bankers, brokerage organizations, or other investment 
        managers.  The disclosure document must be prepared within 60 
        days after the close of the fiscal year of the plan and must be 
        available for public inspection during regular office hours at 
        the office of the plan.  The disclosure document must also be 
        filed with the executive director of the legislative commission 
        on pensions and retirement within 90 days after the close of the 
        fiscal year of the plan.  For the state board of investment and 
        a first class city teacher retirement fund association, a 
        disclosure document included as part of a regular annual report 
        of the board or of the first class city teacher retirement fund 
        association when filed with the executive director of the 
        legislative commission on pensions and retirement is considered 
        to have been filed on a timely basis. 
           Sec. 27.  Minnesota Statutes 2000, section 490.121, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ALLOWABLE SERVICE.] "Allowable service" means a 
        whole year, or any fraction thereof any calendar month, subject 
        to the service credit limit in subdivision 22, served as a judge 
        at any time, or served as a referee in probate for all referees 
        in probate who were in office prior to January 1, 1974. 
           Sec. 28.  Laws 2000, chapter 461, article 10, section 3, is 
        amended to read: 
           Sec. 3.  [EFFECTIVE DATE.] 
           Section 1 is effective on the day following final enactment.
        Section 2 is effective on the first day of the first full pay 
        period beginning after January 1, 2002 2003. 
           Sec. 29.  [REPEALER.] 
           Minnesota Statutes 2000, section 354A.026, is repealed. 
           Sec. 30.  [EFFECTIVE DATE.] 
           (a) Sections 1 to 20, and 22 to 29 are effective on July 1, 
        2001. 
           (b) Section 21 is effective on May 1, 2001. 

                                   ARTICLE 4 
            OPEN MEETING REQUIREMENT FOR LOCAL PUBLIC PENSION PLANS
           Section 1.  Minnesota Statutes 2000, section 13D.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [IN EXECUTIVE BRANCH, LOCAL GOVERNMENT.] 
        All meetings, including executive sessions, must be open to the 
        public 
           (a) of a state 
           (1) agency, 
           (2) board, 
           (3) commission, or 
           (4) department, 
        when required or permitted by law to transact public business in 
        a meeting; and 
           (b) of the governing body of a 
           (1) school district however organized, 
           (2) unorganized territory, 
           (3) county, 
           (4) statutory or home rule charter city, 
           (5) town, or 
           (6) other public body; and 
           (c) of any 
           (1) committee, 
           (2) subcommittee, 
           (3) board, 
           (4) department, or 
           (5) commission, 
        of a public body; and 
           (d) of the governing body or a committee of: 
           (1) a statewide public pension plan defined in section 
        356A.01, subdivision 24; or 
           (2) a local public pension plan governed by section 69.77, 
        sections 69.771 to 69.775, or chapter 354A, 422A, or 423B. 
           Sec. 2.  Minnesota Statutes 2000, section 356A.08, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PUBLIC MEETINGS.] A meeting of the 
        governing board of a covered statewide pension plan or of a 
        committee of the governing board of the statewide covered 
        pension plan is governed by chapter 13D. 
           Sec. 3.  [EFFECTIVE DATE.] 
           Sections 1 and 2 are effective the day following final 
        enactment. 

                                   ARTICLE 5  
                          POLICE STATE AID AMENDMENTS
           Section 1.  Minnesota Statutes 2000, section 69.011, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] Unless the language or 
        context clearly indicates that a different meaning is intended, 
        the following words and terms shall for the purposes of this 
        chapter and chapters 423, 423A, 424 and 424A have the meanings 
        ascribed to them: 
           (a) "Commissioner" means the commissioner of revenue. 
           (b) "Municipality" means any: 
           (1) a home rule charter or statutory city,; 
           (2) an organized town or; 
           (3) a park district subject to chapter 398,; 
           (4) the University of Minnesota, and,; 
           (5) for purposes of the fire state aid program only, an 
        American Indian tribal government entity located within a 
        federally recognized American Indian reservation, and,; 
           (6) for purposes of the police state aid program only, an 
        American Indian tribal government with a tribal police 
        department which exercises state arrest powers under section 
        626.90, 626.91, 626.92, or 626.93; 
           (7) for purposes of the police state aid program only, the 
        metropolitan airports commission, with respect to peace officers 
        covered under chapter 422A, or; and 
           (8) for purposes of the police state aid program only, the 
        department of natural resources and the department of public 
        safety with respect to peace officers covered under chapter 352B.
           (c) "Minnesota Firetown Premium Report" means a form 
        prescribed by the commissioner containing space for reporting by 
        insurers of fire, lightning, sprinkler leakage and extended 
        coverage premiums received upon risks located or to be performed 
        in this state less return premiums and dividends. 
           (d) "Firetown" means the area serviced by any municipality 
        having a qualified fire department or a qualified incorporated 
        fire department having a subsidiary volunteer firefighters' 
        relief association. 
           (e) "Market value" means latest available market value of 
        all property in a taxing jurisdiction, whether the property is 
        subject to taxation, or exempt from ad valorem taxation obtained 
        from information which appears on abstracts filed with the 
        commissioner of revenue or equalized by the state board of 
        equalization. 
           (f) "Minnesota Aid to Police Premium Report" means a form 
        prescribed by the commissioner for reporting by each fire and 
        casualty insurer of all premiums received upon direct business 
        received by it in this state, or by its agents for it, in cash 
        or otherwise, during the preceding calendar year, with reference 
        to insurance written for insuring against the perils contained 
        in auto insurance coverages as reported in the Minnesota 
        business schedule of the annual financial statement which each 
        insurer is required to file with the commissioner in accordance 
        with the governing laws or rules less return premiums and 
        dividends. 
           (g) "Peace officer" means any person: 
           (1) whose primary source of income derived from wages is 
        from direct employment by a municipality or county as a law 
        enforcement officer on a full-time basis of not less than 30 
        hours per week; 
           (2) who has been employed for a minimum of six months prior 
        to December 31 preceding the date of the current year's 
        certification under subdivision 2, clause (b); 
           (3) who is sworn to enforce the general criminal laws of 
        the state and local ordinances; 
           (4) who is licensed by the peace officers standards and 
        training board and is authorized to arrest with a warrant; and 
           (5) who is a member of a local police relief association to 
        which section 69.77 applies, the state patrol retirement plan, 
        the public employees police and fire fund, or the Minneapolis 
        employees retirement fund. 
           (h) "Full-time equivalent number of peace officers 
        providing contract service" means the integral or fractional 
        number of peace officers which would be necessary to provide the 
        contract service if all peace officers providing service were 
        employed on a full-time basis as defined by the employing unit 
        and the municipality receiving the contract service. 
           (i) "Retirement benefits other than a service pension"  
        means any disbursement authorized under section 424A.05, 
        subdivision 3, clauses (2), (3), and (4).  
           (j) "Municipal clerk, municipal clerk-treasurer, or county 
        auditor" means the person who was elected or appointed to the 
        specified position or, in the absence of the person, another 
        person who is designated by the applicable governing body.  In a 
        park district, the clerk is the secretary of the board of park 
        district commissioners.  In the case of the University of 
        Minnesota, the clerk is that official designated by the board of 
        regents.  For the metropolitan airports commission, the clerk is 
        the person designated by the commission.  For the department of 
        natural resources or the department of public safety, the clerk 
        is the respective commissioner.  For a tribal police department 
        which exercises state arrest powers under section 626.90, 
        626.91, 626.92, or 626.93, the clerk is the person designated by 
        the applicable American Indian tribal government. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective the day following final enactment. 

                                   ARTICLE 6  
                      GENERALIZED SERVICE CREDIT PURCHASES
           Section 1.  Minnesota Statutes 2000, section 352.01, 
        subdivision 11, is amended to read: 
           Subd. 11.  [ALLOWABLE SERVICE.] "Allowable service" means:  
           (1) Service by an employee for which on or before July 1, 
        1957, the employee was entitled to allowable service credit on 
        the records of the system by reason of employee contributions in 
        the form of salary deductions, payments in lieu of salary 
        deductions, or in any other manner authorized by Minnesota 
        Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239.
           (2) Service by an employee for which on or before July 1, 
        1961, the employee chose to obtain credit for service by making 
        payments to the fund under Minnesota Statutes 1961, section 
        352.24. 
           (3) Except as provided in clauses (8) and (9), service by 
        an employee after July 1, 1957, for any calendar month in which 
        the employee is paid salary from which deductions are made, 
        deposited, and credited in the fund, including deductions made, 
        deposited, and credited as provided in section 352.041. 
           (4) Except as provided in clauses (8) and (9), service by 
        an employee after July 1, 1957, for any calendar month for which 
        payments in lieu of salary deductions are made, deposited, and 
        credited in the fund, as provided in section 352.27 and 
        Minnesota Statutes 1957, section 352.021, subdivision 4. 
           For purposes of clauses (3) and (4), except as provided in 
        clauses (8) and (9), any salary paid for a fractional part of 
        any calendar month, including the month of separation from state 
        service, is deemed the compensation for the entire calendar 
        month. 
           (5) The period of absence from their duties by employees 
        who are temporarily disabled because of injuries incurred in the 
        performance of duties and for which disability the state is 
        liable under the workers' compensation law until the date 
        authorized by the director for the commencement of payments of a 
        total and permanent disability benefit from the retirement fund. 
           (6) Service covered by a refund repaid as provided in 
        section 352.23 or 352D.05, subdivision 4, except service 
        rendered as an employee of the adjutant general for which the 
        person has credit with the federal civil service retirement 
        system. 
           (7) Service before July 1, 1978, by an employee of the 
        transit operating division of the metropolitan transit 
        commission or by an employee on an authorized leave of absence 
        from the transit operating division of the metropolitan transit 
        commission who is employed by the labor organization which is 
        the exclusive bargaining agent representing employees of the 
        transit operating division, which was credited by the 
        metropolitan transit commission-transit operating division 
        employees retirement fund or any of its predecessor plans or 
        funds as past, intermediate, future, continuous, or allowable 
        service as defined in the metropolitan transit 
        commission-transit operating division employees retirement fund 
        plan document in effect on December 31, 1977. 
           (8) Service after July 1, 1983, by an employee who is 
        employed on a part-time basis for less than 50 percent of full 
        time, for which the employee is paid salary from which 
        deductions are made, deposited, and credited in the fund, 
        including deductions made, deposited, and credited as provided 
        in section 352.041 or for which payments in lieu of salary 
        deductions are made, deposited, and credited in the fund as 
        provided in section 352.27 shall be credited on a fractional 
        basis either by pay period, monthly, or annually based on the 
        relationship that the percentage of salary earned bears to a 
        full-time salary, with any salary paid for the fractional 
        service credited on the basis of the rate of salary applicable 
        for a full-time pay period, month, or a full-time year.  For 
        periods of part-time service that is duplicated service credit, 
        section 356.30, subdivision 1, clauses (i) and (j), govern. 
           Allowable service determined and credited on a fractional 
        basis shall be used in calculating the amount of benefits 
        payable, but service as determined on a fractional basis must 
        not be used in determining the length of service required for 
        eligibility for benefits.  
           (9) Any period of authorized leave of absence without pay 
        that does not exceed one year and for which the employee 
        obtained credit by payment to the fund in lieu of salary 
        deductions.  To obtain credit, the employee shall pay an amount 
        equal to the employee and employer contribution rate in section 
        352.04, subdivisions 2 and 3, multiplied by the employee's 
        hourly rate of salary on the date of return from leave of 
        absence and by the days and months of the leave of absence 
        without pay for which the employee wants allowable service 
        credit.  The employing department, at its option, may pay the 
        employer amount on behalf of its employees.  Payments made under 
        this clause must include interest at an annual rate of 8.5 
        percent compounded annually from the date of termination of the 
        leave of absence to the date payment is made unless payment is 
        completed within one year of the return from leave of absence. 
           (10) A period purchased under section 356.555. 
           Sec. 2.  Minnesota Statutes 2000, section 352B.01, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ALLOWABLE SERVICE.] (a) "Allowable service" 
        means:  
           (1) for members defined in subdivision 2, clause (a), 
        monthly service is granted for any month for which payments have 
        been made to the state patrol retirement fund, and 
           (2) for members defined in subdivision 2, clauses (b) and 
        (c), service for which payments have been made to the state 
        patrol retirement fund, service for which payments were made to 
        the state police officers retirement fund after June 30, 1961, 
        and all prior service which was credited to a member for service 
        on or before June 30, 1961.  
           (b) Allowable service also includes any period of absence 
        from duty by a member who, by reason of injury incurred in the 
        performance of duty, is temporarily disabled and for which 
        disability the state is liable under the workers' compensation 
        law, until the date authorized by the executive director for 
        commencement of payment of a disability benefit or return to 
        employment.  
           (c) Allowable service also includes a period purchased 
        under section 356.555. 
           Sec. 3.  Minnesota Statutes 2000, section 353.01, 
        subdivision 16, is amended to read: 
           Subd. 16.  [ALLOWABLE SERVICE.] (a) "Allowable service" 
        means service during years of actual membership in the course of 
        which employee contributions were made, periods covered by 
        payments in lieu of salary deductions under section 353.35, and 
        service in years during which the public employee was not a 
        member but for which the member later elected, while a member, 
        to obtain credit by making payments to the fund as permitted by 
        any law then in effect. 
           (b) "Allowable service" also means a period of authorized 
        leave of absence with pay from which deductions for employee 
        contributions are made, deposited, and credited to the fund.  
           (c) "Allowable service" also means a period of authorized 
        leave of absence without pay that does not exceed one year, and 
        during or for which a member obtained credit by payments to the 
        fund made in place of salary deductions, provided that the 
        payments are made in an amount or amounts based on the member's 
        average salary on which deductions were paid for the last six 
        months of public service, or for that portion of the last six 
        months while the member was in public service, to apply to the 
        period in either case immediately preceding commencement of the 
        leave of absence.  If the employee elects to pay employee 
        contributions for the period of any leave of absence without 
        pay, or for any portion of the leave, the employee shall also, 
        as a condition to the exercise of the election, pay to the fund 
        an amount equivalent to both the required employer and 
        additional employer contributions for the employee.  The payment 
        must be made within one year from the expiration of the leave of 
        absence or within 20 days after termination of public service 
        under subdivision 11a.  The employer by appropriate action of 
        its governing body, made a part of its official records, before 
        the date of the first payment of the employee contribution, may 
        certify to the association in writing its commitment to pay the 
        employer and additional employer contributions from the proceeds 
        of a tax levy made under section 353.28.  Payments under this 
        paragraph must include interest at an annual rate of 8.5 percent 
        compounded annually from the date of the termination of the 
        leave of absence to the date payment is made.  An employee shall 
        return to public service and receive a minimum of three months 
        of allowable service to be eligible to pay employee and employer 
        contributions for a subsequent authorized leave of absence 
        without pay. 
           (d) "Allowable service" also means a periodic, repetitive 
        leave that is offered to all employees of a governmental 
        subdivision.  The leave program may not exceed 208 hours per 
        annual normal work cycle as certified to the association by the 
        employer.  A participating member obtains service credit by 
        making employee contributions in an amount or amounts based on 
        the member's average salary that would have been paid if the 
        leave had not been taken.  The employer shall pay the employer 
        and additional employer contributions on behalf of the 
        participating member.  The employee and the employer are 
        responsible to pay interest on their respective shares at the 
        rate of 8.5 percent a year, compounded annually, from the end of 
        the normal cycle until full payment is made.  An employer shall 
        also make the employer and additional employer contributions, 
        plus 8.5 percent interest, compounded annually, on behalf of an 
        employee who makes employee contributions but terminates public 
        service.  The employee contributions must be made within one 
        year after the end of the annual normal working cycle or within 
        20 days after termination of public service, whichever is 
        sooner.  The association shall prescribe the manner and forms to 
        be used by a governmental subdivision in administering a 
        periodic, repetitive leave. 
           (e) "Allowable service" also means a period during which a 
        member is on an authorized sick leave of absence, without pay, 
        limited to one year.  An employee who has received one year of 
        allowable service shall return to public service and receive a 
        minimum of three months of allowable service to receive 
        allowable service for a subsequent authorized sick leave of 
        absence. 
           (f) "Allowable service" also means an authorized temporary 
        layoff under subdivision 12, limited to three months allowable 
        service per authorized temporary layoff in one calendar year.  
        An employee who has received the maximum service allowed for an 
        authorized temporary layoff shall return to public service and 
        receive a minimum of three months of allowable service to 
        receive allowable service for a subsequent authorized temporary 
        layoff. 
           (g) Notwithstanding any law to the contrary, "allowable 
        service" also means a parental leave.  The association shall 
        grant a maximum of two months service credit for a parental 
        leave, within six months after the birth or adoption, upon 
        documentation from the member's governmental subdivision or 
        presentation of a birth certificate or other evidence of birth 
        or adoption to the association. 
           (h) "Allowable service" also means a period during which a 
        member is on an authorized leave of absence to enter military 
        service, provided that the member returns to public service upon 
        discharge from military service under section 192.262 and pays 
        into the fund employee contributions based upon the employee's 
        salary at the date of return from military service.  Payment 
        must be made within five years of the date of discharge from the 
        military service.  The amount of these contributions must be in 
        accord with the contribution rates and salary limitations, if 
        any, in effect during the leave, plus interest at an annual rate 
        of 8.5 percent compounded annually from the date of return to 
        public service to the date payment is made.  The matching 
        employer contribution and additional employer contribution under 
        section 353.27, subdivisions 3 and 3a, must be paid by the 
        governmental subdivision employing the member upon return to 
        public service if the member makes the employee contributions.  
        The governmental subdivision involved may appropriate money for 
        those payments.  A member may not receive credit for a voluntary 
        extension of military service at the instance of the member 
        beyond the initial period of enlistment, induction, or call to 
        active duty. 
           (i) For calculating benefits under sections 353.30, 353.31, 
        353.32, and 353.33 for state officers and employees displaced by 
        the Community Corrections Act, chapter 401, and transferred into 
        county service under section 401.04, "allowable service" means 
        combined years of allowable service as defined in paragraphs (a) 
        to (i) and section 352.01, subdivision 11.  
           (j) For a public employee who has prior service covered by 
        a local police or firefighters relief association that has 
        consolidated with the public employees retirement association or 
        to which section 353.665 applies, and who has elected the type 
        of benefit coverage provided by the public employees police and 
        fire fund either under section 353A.08 following the 
        consolidation or under section 353.665, subdivision 4, 
        "applicable service" is a period of service credited by the 
        local police or firefighters relief association as of the 
        effective date of the consolidation based on law and on bylaw 
        provisions governing the relief association on the date of the 
        initiation of the consolidation procedure. 
           (k) "Allowable service" also means a period purchased under 
        section 356.555. 
           Sec. 4.  Minnesota Statutes 2000, section 354.05, 
        subdivision 13, is amended to read: 
           Subd. 13.  [ALLOWABLE SERVICE.] "Allowable service" means: 
           (1) Any service rendered by a teacher for which on or 
        before July 1, 1957, the teacher's account in the retirement 
        fund was credited by reason of employee contributions in the 
        form of salary deductions, payments in lieu of salary 
        deductions, or in any other manner authorized by Minnesota 
        Statutes 1953, sections 135.01 to 135.13, as amended by Laws 
        1955, chapters 361, 549, 550, 611 or 
           (2) Any service rendered by a teacher for which on or 
        before July 1, 1961, the teacher elected to obtain credit for 
        service by making payments to the fund pursuant to Minnesota 
        Statutes 1980, section 354.09 and section 354.51 or 
           (3) Any service rendered by a teacher after July 1, 1957, 
        for any calendar month when the member receives salary from 
        which deductions are made, deposited and credited in the fund, 
        or 
           (4) Any service rendered by a person after July 1, 1957, 
        for any calendar month where payments in lieu of salary 
        deductions are made, deposited and credited into the fund as 
        provided in Minnesota Statutes 1980, section 354.09, subdivision 
        4, and section 354.53, or 
           (5) Any service rendered by a teacher for which the teacher 
        elected to obtain credit for service by making payments to the 
        fund pursuant to Minnesota Statutes 1980, section 354.09, 
        subdivisions 1 and 4, sections 354.50, 354.51, Minnesota 
        Statutes 1957, section 135.41, subdivision 4, Minnesota Statutes 
        1971, section 354.09, subdivision 2, or Minnesota Statutes, 1973 
        Supplement, section 354.09, subdivision 3, or 
           (6) Both service during years of actual membership in the 
        course of which contributions were currently made and service in 
        years during which the teacher was not a member but for which 
        the teacher later elected to obtain credit by making payments to 
        the fund as permitted by any law then in effect, or 
           (7) Any service rendered where contributions were made and 
        no allowable service credit was established because of the 
        limitations contained in Minnesota Statutes 1957, section 
        135.09, subdivision 2, as determined by the ratio between the 
        amounts of money credited to the teacher's account in a fiscal 
        year and the maximum retirement contribution allowable for that 
        year, or 
           (8) a period purchased under section 356.555.  
           Sec. 5.  Minnesota Statutes 2000, section 354.534, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) A 
        teacher who has at least three years of allowable service credit 
        with the teachers retirement association is entitled to purchase 
        up to ten years of allowable and formula service credit for 
        out-of-state teaching service by making payment under section 
        356.55, provided the out-of-state teaching service was performed 
        for an educational institution established and operated by 
        another state, governmental subdivision of another state, or the 
        federal government governmental jurisdiction and the teacher is 
        not entitled to receive a current or deferred age and service 
        retirement annuity or disability benefit and has not purchased 
        service credit from another defined benefit public employee 
        pension plan for that out-of-state teaching service. 
           (b) For purposes of paragraph (a), "another governmental 
        jurisdiction" means:  
           (1) another state of the United States; 
           (2) a governmental subdivision of another state of the 
        United States; 
           (3) the federal government; 
           (4) a federally recognized American Indian tribe; or 
           (5) a country other than the United States. 
           Sec. 6.  Minnesota Statutes 2000, section 354.536, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
        teacher who has at least three years of allowable service credit 
        with the teachers retirement association is entitled to purchase 
        up to ten years of allowable and formula service credit for 
        developmental achievement center, nonprofit community-based 
        corporation, private, or parochial school teaching service by 
        making payment under section 356.55, provided that the teacher 
        is not entitled to receive a current or deferred age and service 
        retirement annuity or disability benefit from the applicable 
        employer-sponsored pension plan and has not purchased service 
        credit from the applicable defined benefit employer-sponsored 
        pension plan for that service. 
           Sec. 7.  Minnesota Statutes 2000, section 354.539, is 
        amended to read: 
           354.539 [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO 
        PURCHASE SERVICE CREDIT.] 
           (a) Unless prohibited by or subject to a penalty under 
        federal law, a teacher who is a participant in the college 
        supplemental retirement plan established under chapter 354C may 
        utilize the teacher's supplemental plan account to purchase 
        service credit under sections 354.53, 354.533, 354.534, 354.535, 
        354.536, 354.537, and 354.538, 354.541, and 354.542 or to repay 
        a refund under section 354.50. 
           (b) At the request of a member, if determined by the 
        executive director to be eligible to purchase service credit, 
        the executive director shall notify the board of the Minnesota 
        state colleges and universities system of the cost of the 
        purchase and shall request the transfer of funds from the 
        member's college supplemental retirement account to the teachers 
        retirement association.  Upon receipt of the full prior service 
        credit purchase payment amount, the teachers retirement 
        association shall grant the requested allowable and formula 
        service credit. 
           Sec. 8.  [354.541] [PRIOR UNIVERSITY OF MINNESOTA TEACHING 
        SERVICE CREDIT PURCHASE.] 
           Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
        teacher who has at least three years of allowable service credit 
        with the teachers retirement association is entitled to purchase 
        up to ten years of allowable and formula service credit for 
        University of Minnesota teaching service by making payment under 
        section 356.55, provided the teacher is not entitled to receive 
        a current or deferred age and service retirement annuity or 
        disability benefit and has not purchased service credit from 
        another defined benefit public employee pension plan for that 
        University of Minnesota teaching service.  
           Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
        desires to purchase service credit under subdivision 1 must 
        apply with the executive director to make the purchase.  The 
        application must include all necessary documentation of the 
        teacher's qualifications to make the purchase, signed written 
        permission to allow the executive director to request and 
        receive necessary verification of applicable facts and 
        eligibility requirements, and any other relevant information 
        that the executive director may require.  Payment must be made 
        before the teacher's effective date of retirement. 
           Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
        service credit for the purchase period must be granted by the 
        teachers retirement association to the purchasing teacher on 
        receipt of the purchase payment amount. 
           Sec. 9.  [354.542] [PRIOR TEACHING SERVICE CREDIT PURCHASE 
        BY IRAP MEMBERS WITH DEFERRED TEACHERS RETIREMENT ASSOCIATION 
        CREDIT.] 
           A person in covered employment under section 354B.20, 
        subdivision 4, who is a participant in the individual retirement 
        account plan authorized by chapter 354B and who has at least 
        three years of allowable service credit with the teachers 
        retirement association may purchase service credit as provided 
        in sections 354.533 to 354.538 and 354.541. 
           Sec. 10.  Minnesota Statutes 2000, section 354A.011, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ALLOWABLE SERVICE.] "Allowable service" means 
        any service rendered by a teacher during a period in which the 
        teacher receives salary from which employee contribution salary 
        deductions are made to and credited by the teachers retirement 
        fund association or, any service rendered by a person during any 
        period where assessments or payments in lieu of salary 
        deductions were made if authorized by any law or provision of 
        the association's articles of incorporation or bylaws then in 
        effect or pursuant to section 354A.091, 354A.092, 354A.093, or 
        354A.094, or service credit purchased under section 356.555. 
           Sec. 11.  Minnesota Statutes 2000, section 354A.098, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) A 
        teacher who has at least three years of allowable service credit 
        with one of the retirement fund associations under this chapter 
        and who rendered out-of-state teaching service for an 
        educational institution established and operated by another 
        state, governmental subdivision of another state, or the federal 
        government governmental entity specified in paragraph (b) is 
        entitled to purchase up to ten years of allowable service credit 
        for that out-of-state service by making payment under section 
        356.55, provided the teacher is not entitled to receive a 
        current or deferred age and service retirement annuity or 
        disability benefit and has not purchased service credit from 
        another defined benefit public employee pension plan for that 
        out-of-state teaching service.  Payment must be made before the 
        teacher's effective date of retirement.  
           (b) An eligible governmental entity for purposes of 
        paragraph (a) is: 
           (1) another state of the United States; 
           (2) a governmental subdivision of another state of the 
        United States; 
           (3) the federal government; 
           (4) a federally recognized American Indian tribe; or 
           (5) a public education institution in a foreign country. 
           Sec. 12.  Minnesota Statutes 2000, section 354A.101, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
        teacher who has at least three years of allowable service credit 
        with the teachers retirement fund association is entitled to 
        purchase up to ten years of allowable service credit 
        for developmental achievement center or nonprofit 
        community-based corporation, private, or parochial school 
        teaching service by making payment under section 356.55, 
        provided that the teacher is not entitled to receive a current 
        or deferred age and service retirement annuity or disability 
        benefit from the applicable employer-sponsored pension plan and 
        has not purchased service credit from the applicable defined 
        benefit employer-sponsored pension plan for that service. 
           Sec. 13.  Minnesota Statutes 2000, section 354A.106, is 
        amended to read: 
           354A.106 [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO 
        PURCHASE SERVICE CREDIT.] 
           (a) Unless prohibited by or subject to a penalty under 
        federal law, a teacher who is a participant in the college 
        supplemental retirement plan established under chapter 354C may 
        utilize the teacher's supplemental plan account to purchase 
        service credit under sections 354A.097, 354A.098, 354A.099, 
        354A.101, 354A.102, 354A.103, and 354A.104, 354A.109, and 
        354A.1095, or to repay a refund under section 354A.38. 
           (b) At the request of a member, if determined by the 
        executive director of the applicable teachers retirement fund 
        association to be eligible to purchase service credit, the 
        executive director shall notify the board of the Minnesota state 
        colleges and universities system of the cost of the purchase and 
        shall request the transfer of funds from the member's college 
        supplemental retirement account to the applicable teachers 
        retirement fund association.  Upon receipt of the full prior 
        service credit purchase payment amount, the applicable teachers 
        retirement fund association shall grant the requested allowable 
        and formula service credit. 
           Sec. 14.  [354A.109] [PRIOR UNIVERSITY OF MINNESOTA 
        TEACHING SERVICE CREDIT PURCHASE.] 
           Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
        teacher who has at least three years of allowable service credit 
        with the teachers retirement fund association is entitled to 
        purchase up to ten years of allowable service credit for 
        University of Minnesota teaching service by making payment under 
        section 356.55, provided the teacher is not entitled to receive 
        a current or deferred age and service retirement annuity or 
        disability benefit and has not purchased service credit from 
        another defined benefit public employee pension plan for that 
        University of Minnesota teaching service.  
           Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
        desires to purchase service credit under subdivision 1 must 
        apply with the executive director to make the purchase.  The 
        application must include all necessary documentation of the 
        teacher's qualifications to make the purchase, signed written 
        permission to allow the executive director to request and 
        receive necessary verification of applicable facts and 
        eligibility requirements, and any other relevant information 
        that the executive director may require.  Payment must be made 
        before the teacher's effective date of retirement. 
           Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
        for the purchase period must be granted by the teachers 
        retirement association to the purchasing teacher on receipt of 
        the purchase payment amount. 
           Sec. 15.  [354A.1095] [PRIOR TEACHING SERVICE CREDIT 
        PURCHASE BY IRAP MEMBERS WITH DEFERRED TEACHERS RETIREMENT 
        ASSOCIATION CREDIT.] 
           A teacher who is a participant in the individual retirement 
        account plan authorized by chapter 354B and who has at least 
        three years of allowable service credit with a teachers 
        retirement fund association may purchase service credit as 
        provided in sections 354A.091 to 354A.099, 354A.101 to 
        354A.106, and 354A.109. 
           Sec. 16.  Minnesota Statutes 2000, section 356.55, 
        subdivision 7, is amended to read: 
           Subd. 7.  [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 
        PROCEDURE.] (a) This section expires and is repealed on July 
        1, 2001 2003. 
           (b) Authority for any public pension plan to accept a prior 
        service credit payment calculated in a timely fashion under this 
        section expires on October 1, 2001 2003. 
           Sec. 17.  [356.555] [PARENTAL OR FAMILY LEAVE SERVICE 
        CREDIT PURCHASE.] 
           Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZATION.] (a)
        Notwithstanding any provision to the contrary of the laws 
        governing a plan enumerated in subdivision 4, a member of the 
        pension plan who has at least three years of allowable service 
        covered by the applicable pension plan and who was granted by 
        the employer a parental leave of absence as defined in paragraph 
        (b), or who was granted by the employer a family leave of 
        absence as defined in paragraph (c), or who had a parental or 
        family-related break in employment, as defined in paragraph (d), 
        for which the person did not previously receive service credit 
        or for which the person did not receive or purchase service 
        credit from another defined benefit public employee pension 
        plan, is entitled to purchase the actual period of the leave or 
        of the break in service, up to five years, of allowable service 
        credit in the applicable retirement plan.  The purchase payment 
        amount is governed by section 356.55. 
           (b) For purposes of this section, a parental leave of 
        absence is a temporary period of interruption of or separation 
        from active employment for the purposes of handling maternity or 
        paternity duties that has been approved by the employing unit 
        and that includes the right of reinstatement to employment. 
           (c) For purposes of this section, a family leave of absence 
        is a family leave under United States Code, title 42, section 
        12631, as amended. 
           (d) For purposes of this section, a parental or 
        family-related break in employment is a period following a 
        termination of active employment primarily for the purpose of 
        the birth of a child, the adoption of a child, or the provision 
        of care to a near relative or in-law, after which the person 
        returned to the prior employing unit or to an employing unit 
        covered by the same pension plan that provided retirement 
        coverage immediately prior to the termination of employment. 
           Subd. 2.  [APPLICATION AND DOCUMENTATION.] A person who 
        desires to purchase service credit under subdivision 1 must 
        apply for the service credit purchase with the chief 
        administrative officer of the enumerated pension plan.  The 
        application must include all necessary documentation of the 
        qualifications of the person to make the purchase, signed 
        written permission to allow the chief administrative officer to 
        request and receive necessary verification of all applicable 
        facts and eligibility requirements, and any other relevant 
        information that the chief administrative officer may require. 
           Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
        in the applicable enumerated pension plan for the purchase 
        period must be granted to the purchaser upon receipt of the 
        purchase payment amount calculated under section 356.55.  
        Payment of the purchase amount must be made before the person 
        retires. 
           Subd. 4.  [COVERED PENSION PLANS.] This section applies to 
        the following pension plans: 
           (1) general state employees retirement plan governed by 
        chapter 352; 
           (2) correctional state employees retirement plan governed 
        by chapter 352; 
           (3) general public employees retirement plan governed by 
        chapter 353; 
           (4) public employees police and fire plan governed by 
        chapter 353; 
           (5) teachers retirement plan governed by chapter 354; 
           (6) Minneapolis teachers retirement fund association 
        governed by chapter 354A; 
           (7) Saint Paul teachers retirement fund association 
        governed by chapter 354A; 
           (8) Duluth teachers retirement fund association governed by 
        chapter 354A; 
           (9) Minneapolis employees retirement plan governed by 
        chapter 422A; 
           (10) Minneapolis police relief association governed by 
        chapter 423B; and 
           (11) Minneapolis fire department relief association 
        governed by sections 69.25 to 69.53 and augmented by Laws 1959, 
        chapters 213, 491, and 568, and other special local legislation. 
           Sec. 18.  Minnesota Statutes 2000, section 422A.155, is 
        amended to read: 
           422A.155 [DETERMINATION OF SERVICE CREDIT.] 
           (a) Notwithstanding the provisions of section 422A.15, 
        subdivision 1, no employee of the contributing class of the 
        Minneapolis employees retirement fund shall be entitled to 
        receive a year of service credit during the employee's final 
        year of service unless the employee is employed and has received 
        compensation from the city of Minneapolis or other applicable 
        employing unit during each of the calendar months making up the 
        year for which the employee would usually be employed.  Any 
        employee of the contributing class who is employed and receives 
        compensation in fewer than the usual number of calendar months 
        during the final year of service shall receive credit for that 
        portion of a year that the employee's completed months of 
        employment and receipt of compensation bears to the usual number 
        of months which the employee would usually be employed.  
           (b) Notwithstanding any provision of this chapter to the 
        contrary, service credit also means a period purchased under 
        section 356.555. 
           Sec. 19.  Minnesota Statutes 2000, section 423B.01, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [ALLOWABLE SERVICE CREDIT.] "Allowable service 
        credit" means: 
           (1) service rendered as an active member; 
           (2) service as an elected public official under section 
        423B.03; 
           (3) military service credited under section 423B.09, 
        subdivision 3; and 
           (4) a period of service purchased under section 356.555. 
           Sec. 20.  [MINNEAPOLIS FIRE DEPARTMENT RELIEF ASSOCIATION; 
        PARENTAL LEAVE PURCHASE.] 
           Notwithstanding any provision of Minnesota Statutes, 
        sections 69.25 to 69.53; Laws 1959, chapters 213, 491, and 568; 
        or any other special local law governing the Minneapolis fire 
        department relief association to the contrary, service credit 
        for the purposes of calculating service pensions, disability 
        benefits, or survivor benefits includes a period purchased under 
        Minnesota Statutes, section 356.555. 
           Sec. 21.  [EXPIRATION DATE.] 
           (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 
        18, 19, and 20 expire May 16, 2003. 
           (b) Sections 9 and 15 expire May 16, 2002. 
           Sec. 22.  [EFFECTIVE DATE.] 
           (a) Sections 6 and 9 are effective the day following final 
        enactment. 
           (b) Sections 1 to 5, 7, 8, and 10 to 21 are effective July 
        1, 2001. 

                                   ARTICLE 7  
                 POSTRETIREMENT HEALTH CARE INSURANCE COVERAGE
           Section 1.  [352.98] [POSTRETIREMENT HEALTH CARE SAVINGS 
        PLAN.] 
           Subdivision 1.  [PLAN CREATED.] The Minnesota state 
        retirement system shall establish a plan or plans, known as 
        postretirement health care savings plans, through which public 
        employers and employees may save to cover postretirement health 
        care costs.  The Minnesota state retirement system shall make 
        available one or more trusts, including a governmental trust or 
        governmental trusts, authorized under the Internal Revenue Code 
        to be eligible for tax-preferred or tax-free treatment through 
        which employers and employees can save to cover postretirement 
        health care costs.  
           Subd. 2.  [CONTRACTING AUTHORIZED.] The Minnesota state 
        retirement system is authorized to administer the plan and to 
        contract with public and private entities to provide investment 
        services, recordkeeping, benefit payments, and other functions 
        necessary for the administration of the plan.  If allowed by the 
        Minnesota state board of investment, the Minnesota state board 
        of investment supplemental investment funds may be offered as 
        investment options under the postretirement savings plan or 
        plans.  
           Subd. 3.  [CONTRIBUTIONS.] (a) Contributions to the plan 
        shall be determined through a personnel policy or in a 
        collective bargaining agreement of a public employer with the 
        exclusive representative of the covered employees in an 
        appropriate unit.  The Minnesota state retirement system may 
        offer different types of trusts permitted under the Internal 
        Revenue Code to best meet the needs of different employee units. 
           (b) Contributions to the plan by or on behalf of the 
        employee shall be held in trust for reimbursement of employee 
        and dependent health-related expenses following retirement from 
        public employment.  The Minnesota state retirement system shall 
        maintain a separate account of the contributions made by or on 
        behalf of each participant and the earnings thereon.  The 
        Minnesota state retirement system shall make available a limited 
        range of investment options, and each employee may direct the 
        investment of the accumulations in the employee's account among 
        the investment options made available by the Minnesota state 
        retirement system.  At the request of a participating employer 
        and employee group, the Minnesota state retirement system may 
        determine how the assets of the affected employer and employee 
        group should be invested.  
           (c) This section does not obligate a public employer to 
        meet and negotiate in good faith with the exclusive bargaining 
        representative of any public employee group regarding an 
        employer contribution to a postretirement health care savings 
        plan authorized by this section and section 356.24, subdivision 
        1, clause (7).  It is not the intent of the legislature to 
        authorize the state to incur new funding obligations for the 
        costs of retiree health care or the costs of administering 
        retiree health care plans or accounts.  
           Subd. 4.  [REIMBURSEMENT FOR HEALTH-RELATED 
        EXPENSES.] Following termination of public service, the 
        Minnesota state retirement system shall reimburse employees at 
        least quarterly for submitted health-related expenses, until the 
        employee exhausts the accumulation in the employee's account.  
        If an employee dies prior to exhausting the employee's account 
        balance, the employee's spouse or dependents shall be eligible 
        to be reimbursed for health care expenses from the account until 
        the account balance is exhausted.  If an account balance remains 
        after the death of a participant and all of the participant's 
        legal dependents, the remainder of the account shall be paid to 
        the employee's beneficiaries or, if none, to the employee's 
        estate.  
           Subd. 5.  [FEES.] The Minnesota state retirement plan is 
        authorized to charge uniform fees to participants to cover the 
        ongoing cost of operating the plan.  Any fees not needed shall 
        revert to participant accounts or be used to reduce plan fees 
        the following year.  The Minnesota state retirement system is 
        authorized to charge participating employers a fee, not to 
        exceed one-sixth of the federal insurance contribution act 
        savings realized by the employer as a result of participating in 
        the plan, until the initial costs of establishing the plan or 
        plans authorized by this section are recovered, or $75,000, 
        whichever is less.  
           Subd. 6.  [ADVISORY COMMITTEE.] (a) The Minnesota state 
        retirement system shall establish a participant advisory 
        committee for the plan, made up of one representative appointed 
        by each employee unit participating in the plan.  Each 
        participating unit shall be responsible for the expenses of its 
        own representative.  
           (b) The advisory committee shall meet at least twice per 
        year and shall be consulted on plan offerings and vendor 
        selection.  By October 1 of each year, the Minnesota state 
        retirement system shall give the advisory committee a statement 
        of fees collected and the use of the fees.  
           Subd. 7.  [CONTRACTING WITH PRIVATE ENTITIES.] Nothing in 
        this section shall prohibit employers from contracting with 
        private entities to provide for postretirement health care 
        reimbursement plans.  
           Sec. 2.  Minnesota Statutes 2000, section 356.24, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
        for a school district or other governmental subdivision or state 
        agency to levy taxes for, or contribute public funds to a 
        supplemental pension or deferred compensation plan that is 
        established, maintained, and operated in addition to a primary 
        pension program for the benefit of the governmental subdivision 
        employees other than: 
           (1) to a supplemental pension plan that was established, 
        maintained, and operated before May 6, 1971; 
           (2) to a plan that provides solely for group health, 
        hospital, disability, or death benefits; 
           (3) to the individual retirement account plan established 
        by chapter 354B; 
           (4) to a plan that provides solely for severance pay under 
        section 465.72 to a retiring or terminating employee; 
           (5) for employees other than personnel employed by the 
        state university board or the community college board and 
        covered by the board of trustees of the Minnesota state colleges 
        and universities supplemental retirement plan under chapter 
        354C, if provided for in a personnel policy of the public 
        employer or in the collective bargaining agreement between the 
        public employer and the exclusive representative of public 
        employees in an appropriate unit, in an amount matching employee 
        contributions on a dollar for dollar basis, but not to exceed an 
        employer contribution of $2,000 a year per employee; 
           (i) to the state of Minnesota deferred compensation plan 
        under section 352.96; or 
           (ii) in payment of the applicable portion of the 
        contribution made to any investment eligible under section 
        403(b) of the Internal Revenue Code, if the employing unit has 
        complied with any applicable pension plan provisions of the 
        Internal Revenue Code with respect to the tax-sheltered annuity 
        program during the preceding calendar year; or 
           (6) for personnel employed by the state university board or 
        the community college board and not covered by clause (5), to 
        the supplemental retirement plan under chapter 354C, if provided 
        for in a personnel policy or in the collective bargaining 
        agreement of the public employer with the exclusive 
        representative of the covered employees in an appropriate unit, 
        in an amount matching employee contributions on a dollar for 
        dollar basis, but not to exceed an employer contribution of 
        $2,700 a year for each employee; 
           (7) to a supplemental plan or to a governmental trust to 
        save for postretirement health care expenses qualified for 
        tax-preferred treatment under the Internal Revenue Code, if 
        provided for in a personnel policy or in the collective 
        bargaining agreement of a public employer with the exclusive 
        representative of the covered employees in an appropriate unit; 
        or 
           (8) to the laborer's national industrial pension fund for 
        the employees of a governmental subdivision who are covered by a 
        collective bargaining agreement that provides for coverage by 
        that fund and that sets forth a fund contribution rate, but not 
        to exceed an employer contribution of $2,000 per year per 
        employee. 
           Sec. 3.  [EFFECTIVE DATE.] 
           Sections 1 and 2 are effective July 1, 2001. 

                                   ARTICLE 8
               STATE PATROL RETIREMENT PLAN MEMBERSHIP EXPANSION
           Section 1.  Minnesota Statutes 2000, section 352.01, 
        subdivision 2b, is amended to read: 
           Subd. 2b.  [EXCLUDED EMPLOYEES.] "State employee" does not 
        include: 
           (1) elective state officers; 
           (2) students employed by the University of Minnesota, the 
        state universities, and community colleges unless approved for 
        coverage by the board of regents or the board of trustees of the 
        Minnesota state colleges and universities, as the case may be; 
           (3) employees who are eligible for membership in the state 
        teachers retirement association except employees of the 
        department of children, families, and learning who have chosen 
        or may choose to be covered by the Minnesota state retirement 
        system instead of the teachers retirement association; 
           (4) employees of the University of Minnesota who are 
        excluded from coverage by action of the board of regents; 
           (5) officers and enlisted personnel in the national guard 
        and the naval militia who are assigned to permanent peacetime 
        duty and who under federal law are or are required to be members 
        of a federal retirement system; 
           (6) election officers; 
           (7) persons engaged in public work for the state but 
        employed by contractors when the performance of the contract is 
        authorized by the legislature or other competent authority; 
           (8) officers and employees of the senate and house of 
        representatives or a legislative committee or commission who are 
        temporarily employed; 
           (9) receivers, jurors, notaries public, and court employees 
        who are not in the judicial branch as defined in section 43A.02, 
        subdivision 25, except referees and adjusters employed by the 
        department of labor and industry; 
           (10) patient and inmate help in state charitable, penal, 
        and correctional institutions including the Minnesota veterans 
        home; 
           (11) persons employed for professional services where the 
        service is incidental to regular professional duties and whose 
        compensation is paid on a per diem basis; 
           (12) employees of the Sibley House Association; 
           (13) the members of any state board or commission who serve 
        the state intermittently and are paid on a per diem basis; the 
        secretary, secretary-treasurer, and treasurer of those boards if 
        their compensation is $5,000 or less per year, or, if they are 
        legally prohibited from serving more than three years; and the 
        board of managers of the state agricultural society and its 
        treasurer unless the treasurer is also its full-time secretary; 
           (14) state troopers; 
           (15) temporary employees of the Minnesota state fair 
        employed on or after July 1 for a period not to extend beyond 
        October 15 of that year; and persons employed at any time by the 
        state fair administration for special events held on the 
        fairgrounds; 
           (16) emergency employees in the classified service; except 
        that if an emergency employee, within the same pay period, 
        becomes a provisional or probationary employee on other than a 
        temporary basis, the employee shall be considered a "state 
        employee" retroactively to the beginning of the pay period; 
           (17) persons described in section 352B.01, subdivision 2, 
        clauses (2) to (5) (6); 
           (18) temporary employees in the classified service, and 
        temporary employees in the unclassified service appointed for a 
        definite period of not more than six months and employed less 
        than six months in any one-year period; 
           (19) trainee employees, except those listed in subdivision 
        2a, clause (10); 
           (20) persons whose compensation is paid on a fee basis; 
           (21) state employees who in any year have credit for 12 
        months service as teachers in the public schools of the state 
        and as teachers are members of the teachers retirement 
        association or a retirement system in St. Paul, Minneapolis, or 
        Duluth; 
           (22) employees of the adjutant general employed on an 
        unlimited intermittent or temporary basis in the classified and 
        unclassified service for the support of army and air national 
        guard training facilities; 
           (23) chaplains and nuns who are excluded from coverage 
        under the federal Old Age, Survivors, Disability, and Health 
        Insurance Program for the performance of service as specified in 
        United States Code, title 42, section 410(a)(8)(A), as amended, 
        if no irrevocable election of coverage has been made under 
        section 3121(r) of the Internal Revenue Code of 1986, as amended 
        through December 31, 1992; 
           (24) examination monitors employed by departments, 
        agencies, commissions, and boards to conduct examinations 
        required by law; 
           (25) persons appointed to serve as members of fact-finding 
        commissions or adjustment panels, arbitrators, or labor referees 
        under chapter 179; 
           (26) temporary employees employed for limited periods under 
        any state or federal program for training or rehabilitation 
        including persons employed for limited periods from areas of 
        economic distress except skilled and supervisory personnel and 
        persons having civil service status covered by the system; 
           (27) full-time students employed by the Minnesota 
        historical society intermittently during part of the year and 
        full-time during the summer months; 
           (28) temporary employees, appointed for not more than six 
        months, of the metropolitan council and of any of its statutory 
        boards, if the board members are appointed by the metropolitan 
        council; 
           (29) persons employed in positions designated by the 
        department of employee relations as student workers; 
           (30) members of trades employed by the successor to the 
        metropolitan waste control commission with trade union pension 
        plan coverage under a collective bargaining agreement first 
        employed after June 1, 1977; 
           (31) persons employed in subsidized on-the-job training, 
        work experience, or public service employment as enrollees under 
        the federal Comprehensive Employment and Training Act after 
        March 30, 1978, unless the person has as of the later of March 
        30, 1978, or the date of employment sufficient service credit in 
        the retirement system to meet the minimum vesting requirements 
        for a deferred annuity, or the employer agrees in writing on 
        forms prescribed by the director to make the required employer 
        contributions, including any employer additional contributions, 
        on account of that person from revenue sources other than funds 
        provided under the federal Comprehensive Employment and Training 
        Act, or the person agrees in writing on forms prescribed by the 
        director to make the required employer contribution in addition 
        to the required employee contribution; 
           (32) off-duty peace officers while employed by the 
        metropolitan council; 
           (33) persons who are employed as full-time police officers 
        by the metropolitan council and as police officers are members 
        of the public employees police and fire fund; 
           (34) persons who are employed as full-time firefighters by 
        the department of military affairs and as firefighters are 
        members of the public employees police and fire fund; 
           (35) foreign citizens with a work permit of less than three 
        years, or an H-1b/JV visa valid for less than three years of 
        employment, unless notice of extension is supplied which allows 
        them to work for three or more years as of the date the 
        extension is granted, in which case they are eligible for 
        coverage from the date extended; and 
           (36) persons who are employed by the board of trustees of 
        the Minnesota state colleges and universities and who elect to 
        remain members of the public employees retirement association or 
        the Minneapolis employees retirement fund, whichever applies, 
        under section 136C.75. 
           Sec. 2.  Minnesota Statutes 2000, section 352B.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MEMBER.] "Member" means: 
           (a) persons referred to and (1) a state patrol member 
        currently employed after June 30, 1943, under Laws 1929, chapter 
        355, as amended or supplemented, currently employed section 
        299D.03 by the state, who is a peace officer under section 
        626.84, and whose salaries salary or compensation is paid out of 
        state funds; 
           (b) (2) a conservation officer employed under section 
        97A.201, currently employed by the state, whose salary or 
        compensation is paid out of state funds; 
           (c) (3) a crime bureau officer who was employed by the 
        crime bureau and was a member of the highway patrolmen's 
        retirement fund on July 1, 1978, whether or not that person has 
        the power of arrest by warrant after that date, or who is 
        employed as police personnel, with powers of arrest by warrant 
        under section 299C.04, and who is currently employed by the 
        state, and whose salary or compensation is paid out of state 
        funds; 
           (d) (4) a person who is employed by the state in the 
        department of public safety in a data processing management 
        position with salary or compensation paid from state funds, who 
        was a crime bureau officer covered by the state patrol 
        retirement plan on August 15, 1987, and who was initially hired 
        in the data processing management position within the department 
        during September 1987, or January 1988, with membership 
        continuing for the duration of the person's employment in that 
        position, whether or not the person has the power of arrest by 
        warrant after August 15, 1987; and 
           (e) (5) a public safety employees employee defined as a 
        peace officers officer in section 626.84, subdivision 1, 
        paragraph (c), and employed with the division of alcohol and 
        gambling enforcement under section 299L.01; and 
           (6) a fugitive apprehension unit officer after October 31, 
        2000, employed by the office of special investigations of the 
        department of corrections who is a peace officer under section 
        626.84.  
           Sec. 3.  [DISPOSITION OF CERTAIN CONTRIBUTIONS.] 
           (a) The employee contributions for the period November 1, 
        2000, to the effective date of this section for a person 
        described in Minnesota Statutes, section 352B.01, subdivision 2, 
        clause (6), must be transferred, with 8.5 percent per annum 
        interest for the period from the date of the contribution to the 
        date of transfer, from the general state employees retirement 
        plan of the Minnesota state retirement system to the state 
        patrol retirement fund. 
           (b) The employer contributions associated with the employee 
        contributions governed by paragraph (a) also must be transferred 
        for the period from the date of the contribution to the date of 
        transfer, with 8.5 percent per annum interest, from the general 
        state employees retirement plan of the Minnesota state 
        retirement system to the state patrol retirement fund. 
           (c) A person described in Minnesota Statutes, section 
        352B.01, subdivision 2, clause (6), must pay, by additional 
        payroll deduction, to the state patrol retirement fund an amount 
        equal to the difference between the transferred employee 
        contributions and interest and the full member contribution 
        under Minnesota Statutes, section 352B.02, subdivision 1a, plus 
        8.5 percent per annum interest on the balance from March 1, 
        2001, to the date the additional payment is complete.  The 
        additional payment must be completed by December 31, 2001, or by 
        the date of retirement, whichever is earlier. 
           (d) The department of corrections, for each person 
        described in Minnesota Statutes, section 352B.01, subdivision 2, 
        clause (6), must pay, in a lump sum on July 1, 2001, to the 
        state patrol retirement fund an amount equal to the difference 
        between the transferred employer contributions and interest and 
        the full employer contribution under Minnesota Statutes, section 
        352B.02, subdivision 1c, plus 8.5 percent per annum interest on 
        the amount from March 1, 2001, to July 1, 2001. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 and 2 are effective retroactively to November 1, 
        2000.  Section 3 is effective the day following final enactment. 

                                   ARTICLE 9 
                 PRIVATIZED PUBLIC EMPLOYEE DISABILITY COVERAGE
           Section 1.  [352F.051] [CONTINUATION OF DISABILITY 
        COVERAGE.] 
           Subdivision 1.  [ELIGIBILITY.] A terminated hospital 
        employee who is totally and permanently disabled under section 
        352.01, subdivision 17, and who had a medically documented 
        preexisting condition of the disability before January 1, 1997, 
        may apply under Minnesota Statutes 1996, section 352.113, 
        subdivision 1, for a disability benefit. 
           Subd. 2.  [CALCULATION OF BENEFITS.] A person qualifying 
        under subdivision 1 is entitled to receive a disability benefit 
        calculated under Minnesota Statutes 1996, section 352.113, 
        subdivision 3.  The disability benefit must be augmented under 
        section 352.72, subdivision 2, from January 1, 1997, to the date 
        on which the disability benefit begins to accrue. 
           Subd. 3.  [APPLICABILITY OF GENERAL LAW.] Except as 
        otherwise provided, section 352.113 applies to a person who 
        qualifies for disability under subdivision 1. 
           Sec. 2.  [353F.051] [CONTINUATION OF DISABILITY COVERAGE.] 
           Subdivision 1.  [ELIGIBILITY.] A terminated medical 
        facility or other public employing unit employee who is totally 
        and permanently disabled under Minnesota Statutes 1998, section 
        353.01, subdivision 19, and who had a medically documented 
        preexisting condition of the disability before the termination 
        of coverage, may apply for a disability benefit. 
           Subd. 2.  [CALCULATION OF BENEFITS.] A person qualifying 
        under subdivision 1 is entitled to receive a disability benefit 
        calculated under Minnesota Statutes 1998, section 353.33, 
        subdivision 3.  The disability benefit must be augmented under 
        Minnesota Statutes 1998, section 353.71, subdivision 2, from the 
        date of termination to the date the disability benefit begins to 
        accrue. 
           Subd. 3.  [APPLICABILITY OF GENERAL LAW.] Except as 
        otherwise provided, Minnesota Statutes 1998, section 353.33, 
        applies to a person who qualifies for disability under 
        subdivision 1. 
           Sec. 3.  [EFFECTIVE DATE.] 
           (a) Sections 1 and 2 are effective the day following final 
        enactment. 
           (b) A disability benefit under section 1 is payable 
        retroactively to March 1, 2000, or to the first of the month 
        next following the date on which the eligible person attempted 
        to apply for a disability benefit from the general state 
        employees retirement plan of the Minnesota state retirement 
        system, whichever is later. 

                                   ARTICLE 10 
                       PERA-GENERAL MEMBERSHIP INCLUSIONS
           Section 1.  Minnesota Statutes 2000, section 353.01, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [INCLUDED EMPLOYEES.] Public employees whose 
        salary from one governmental subdivision exceeds $425 in any 
        month shall participate as members of the association.  If the 
        salary of an employee is less than $425 in a subsequent month, 
        the employee retains membership eligibility.  The following 
        persons are considered public employees: 
           (1) employees whose annual salary from one governmental 
        subdivision exceeds a stipulation prepared in advance, in 
        writing, to be not more than $5,100 per calendar year or per 
        school year for school employees for employment expected to be 
        of a full year's duration or more than the prorated portion of 
        $5,100 per employment period expected to be of less than a full 
        year's duration.  If compensation from one governmental 
        subdivision to an employee under this clause exceeds $5,100 per 
        calendar year or school year after being stipulated in advance 
        not to exceed that amount, the stipulation is no longer valid 
        and contributions must be made on behalf of the employee under 
        section 353.27, subdivision 12, from the month in which the 
        employee's salary first exceeded $425; 
           (2) employees whose total salary from concurrent 
        nontemporary positions in one governmental subdivision exceeds 
        $425 in any month; 
           (3) elected officers for service to which they were elected 
        by the public-at-large, or persons appointed to fill a vacancy 
        in an elective office, who elect to participate by filing an 
        application for membership, but not for service on a joint or 
        regional board that is a governmental subdivision under 
        subdivision 6, paragraph (a), unless the salary earned for that 
        service exceeds $425 in any month.  The option to become a 
        member, once exercised, may not be withdrawn during the 
        incumbency of the person in office; 
           (4) members who are appointed by the governor to be a state 
        department head and elect not to be covered by the Minnesota 
        state retirement system under section 352.021; 
           (5) employees of elected officers; 
           (6) persons who elect to remain members under section 
        480.181, subdivision 2; 
           (7) employees of a school district who receive separate 
        salaries for driving their own buses; 
           (8) employees of the Minnesota association of townships 
        when the board of the association, at its option, certifies to 
        the executive director that its employees are to be included for 
        purposes of retirement coverage, in which case coverage of all 
        employees of the association is permanent; 
           (9) employees of a county historical society who are county 
        employees; 
           (10) employees of a county historical society located in 
        the county whom the county, at its option, certifies to the 
        executive director to be county employees for purposes of 
        retirement coverage under this chapter, which status must be 
        accorded to all similarly situated county historical society 
        employees and, once established, must continue as long as a 
        person is an employee of the county historical society and is 
        not excluded under subdivision 2b; and 
           (11) employees who became members before July 1, 1988, 
        based on the total salary of positions held in more than one 
        governmental subdivision; and 
           (12) full-time employees of the Dakota county agricultural 
        society. 
           Sec. 2.  Minnesota Statutes 2000, section 353.01, 
        subdivision 2b, is amended to read: 
           Subd. 2b.  [EXCLUDED EMPLOYEES.] The following public 
        employees shall not participate as members of the association 
        with retirement coverage by the public employees retirement plan 
        or the public employees police and fire retirement plan: 
           (1) elected public officers, or persons appointed to fill a 
        vacancy in an elective office, who do not elect to participate 
        in the association by filing an application for membership; 
           (2) election officers; 
           (3) patient and inmate personnel who perform services in 
        charitable, penal, or correctional institutions of a 
        governmental subdivision; 
           (4) employees who are hired for a temporary position under 
        subdivision 12a, and employees who resign from a nontemporary 
        position and accept a temporary position within 30 days in the 
        same governmental subdivision, but not those employees who are 
        hired for an unlimited period but are serving a probationary 
        period.  If the period of employment extends beyond six 
        consecutive months and the employee earns more than $425 from 
        one governmental subdivision in any one calendar month, the 
        department head shall report the employee for membership and 
        require employee deductions be made on behalf of the employee 
        under section 353.27, subdivision 4. 
           Membership eligibility of an employee who resigns or is 
        dismissed from a temporary position and within 30 days accepts 
        another temporary position in the same governmental subdivision 
        is determined on the total length of employment rather than on 
        each separate position.  Membership eligibility of an employee 
        who holds concurrent temporary and nontemporary positions in one 
        governmental subdivision is determined by the length of 
        employment and salary of each separate position; 
           (5) employees whose actual salary from one governmental 
        subdivision does not exceed $425 per month, or whose annual 
        salary from one governmental subdivision does not exceed a 
        stipulation prepared in advance, in writing, that the salary 
        must not exceed $5,100 per calendar year or per school year for 
        school employees for employment expected to be of a full year's 
        duration or more than the prorated portion of $5,100 per 
        employment period for employment expected to be of less than a 
        full year's duration; 
           (6) employees who are employed by reason of work emergency 
        caused by fire, flood, storm, or similar disaster; 
           (7) employees who by virtue of their employment in one 
        governmental subdivision are required by law to be a member of 
        and to contribute to any of the plans or funds administered by 
        the Minnesota state retirement system, the teachers retirement 
        association, the Duluth teachers retirement fund association, 
        the Minneapolis teachers retirement association, the St. Paul 
        teachers retirement fund association, the Minneapolis employees 
        retirement fund, or any police or firefighters relief 
        association governed by section 69.77 that has not consolidated 
        with the public employees retirement association, or any local 
        police or firefighters consolidation account but who have not 
        elected the type of benefit coverage provided by the public 
        employees police and fire fund under sections 353A.01 to 
        353A.10, or any persons covered by section 353.665, subdivision 
        4, 5, or 6, who have not elected public employees police and 
        fire plan benefit coverage.  This clause must not be construed 
        to prevent a person from being a member of and contributing to 
        the public employees retirement association and also belonging 
        to and contributing to another public pension fund for other 
        service occurring during the same period of time.  A person who 
        meets the definition of "public employee" in subdivision 2 by 
        virtue of other service occurring during the same period of time 
        becomes a member of the association unless contributions are 
        made to another public retirement fund on the salary based on 
        the other service or to the teachers retirement association by a 
        teacher as defined in section 354.05, subdivision 2; 
           (8) persons who are excluded from coverage under the 
        federal Old Age, Survivors, Disability, and Health Insurance 
        Program for the performance of service as specified in United 
        States Code, title 42, section 410(a)(8)(A), as amended through 
        January 1, 1987, if no irrevocable election of coverage has been 
        made under section 3121(r) of the Internal Revenue Code of 1954, 
        as amended; 
           (9) full-time students who are enrolled and are regularly 
        attending classes at an accredited school, college, or 
        university and who are part-time employees as defined by a 
        governmental subdivision; 
           (10) resident physicians, medical interns, and pharmacist 
        residents and pharmacist interns who are serving in a degree or 
        residency program in public hospitals; 
           (11) students who are serving in an internship or residency 
        program sponsored by an accredited educational institution; 
           (12) persons who hold a part-time adult supplementary 
        technical college license who render part-time teaching service 
        in a technical college; 
           (13) foreign citizens working for a governmental 
        subdivision with a work permit of less than three years, or an 
        H-1b visa valid for less than three years of employment.  Upon 
        notice to the association that the work permit or visa extends 
        beyond the three-year period, the foreign citizens are eligible 
        for membership from the date of the extension; 
           (14) public hospital employees who elected not to 
        participate as members of the association before 1972 and who 
        did not elect to participate from July 1, 1988, to October 1, 
        1988; 
           (15) except as provided in section 353.86, volunteer 
        ambulance service personnel, as defined in subdivision 35, but 
        persons who serve as volunteer ambulance service personnel may 
        still qualify as public employees under subdivision 2 and may be 
        members of the public employees retirement association and 
        participants in the public employees retirement fund or the 
        public employees police and fire fund on the basis of 
        compensation received from public employment service other than 
        service as volunteer ambulance service personnel; 
           (16) except as provided in section 353.87, volunteer 
        firefighters, as defined in subdivision 36, engaging in 
        activities undertaken as part of volunteer firefighter duties; 
        provided that a person who is a volunteer firefighter may still 
        qualify as a public employee under subdivision 2 and may be a 
        member of the public employees retirement association and a 
        participant in the public employees retirement fund or the 
        public employees police and fire fund on the basis of 
        compensation received from public employment activities other 
        than those as a volunteer firefighter; 
           (17) pipefitters and associated trades personnel employed 
        by independent school district No. 625, St. Paul, with 
        coverage under a collective bargaining agreement by the 
        pipefitters local 455 pension plan under a collective bargaining 
        agreement who were either first employed after May 1, 1997, or, 
        if first employed before May 2, 1997, elected to be excluded 
        under Laws 1997, chapter 241, article 2, section 12; and 
           (18) electrical workers, plumbers, carpenters, and 
        associated trades personnel employed by independent school 
        district No. 625, St. Paul, or the city of St. Paul, with 
        coverage under a collective bargaining agreement by the 
        electrical workers local 110 pension plan, the united 
        association plumbers local 34 pension plan, or the carpenters 
        local 87 pension plan under a collective bargaining agreement 
        who were either first employed after May 1, 2000, or, if first 
        employed before May 2, 2000, elected to be excluded under Laws 
        2000, chapter 461, article 7, section 5.; 
           (19) bricklayers, allied craftworkers, cement masons, 
        glaziers, glassworkers, painters, allied tradesworkers, and 
        plasterers employed by the city of St. Paul or independent 
        school district No. 625, St. Paul, with coverage under a 
        collective bargaining agreement by the bricklayers and allied 
        craftworkers local 1 pension plan, the cement masons local 633 
        pension plan, the glaziers and glassworkers local L-1324 pension 
        plan, the painters and allied trades local 61 pension plan, or 
        the Twin Cities plasterers local 265 pension plan who were 
        either first employed after May 1, 2001, or if first employed 
        before May 2, 2001, elected to be excluded under section 6; and 
           (20) plumbers employed by the metropolitan airports 
        commission, with coverage under a collective bargaining 
        agreement by the plumbers local 34 pension plan, who either were 
        first employed after May 1, 2001, or if first employed before 
        May 2, 2001, elected to be excluded under section 6. 
           Sec. 3.  Minnesota Statutes 2000, section 353.01, 
        subdivision 6, is amended to read: 
           Subd. 6.  [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 
        subdivision" means a county, city, town, school district within 
        this state, or a department or unit of state government, or any 
        public body whose revenues are derived from taxation, fees, 
        assessments or from other sources. 
           (b) Governmental subdivision also means the public 
        employees retirement association, the league of Minnesota 
        cities, the association of metropolitan municipalities, public 
        hospitals owned or operated by, or an integral part of, a 
        governmental subdivision or governmental subdivisions, the 
        association of Minnesota counties, the metropolitan intercounty 
        association, the Minnesota municipal utilities association, the 
        metropolitan airports commission, the Minneapolis employees 
        retirement fund for employment initially commenced after June 
        30, 1979, the range association of municipalities and schools, 
        soil and water conservation districts, and economic development 
        authorities created or operating under sections 469.090 to 
        469.108, the Spring Lake Park fire department, incorporated, and 
        the Dakota county agricultural society. 
           (c) Governmental subdivision does not mean any municipal 
        housing and redevelopment authority organized under the 
        provisions of sections 469.001 to 469.047; or any port authority 
        organized under sections 469.048 to 469.089; or any hospital 
        district organized or reorganized prior to July 1, 1975, under 
        sections 447.31 to 447.37 or the successor of the district, nor 
        the Minneapolis community development agency.  
           Sec. 4.  [383D.48] [METROPOLITAN INTER-COUNTY ASSOCIATION.] 
           Notwithstanding any other law to the contrary, Dakota 
        county may provide financial and accounting services, including 
        payroll management and records, to the Metropolitan Inter-county 
        Association.  Notwithstanding this section, Metropolitan 
        Inter-county Association employees are not county employees for 
        any purpose. 
           Sec. 5.  [383D.49] [AGRICULTURAL SOCIETY.] 
           Notwithstanding any other law to the contrary, Dakota 
        county may provide financial and accounting services, including 
        payroll management and records, to the Dakota county 
        agricultural society and may determine that employees of the 
        society are county employees for the purposes of section 471.61. 
        Dakota county agricultural society employees are not county 
        employees for any other purpose. 
           Sec. 6.  [PUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN 
        TRADES PERSONNEL.] 
           Subdivision 1.  [EXCLUSION ELECTION.] (a) A bricklayer, 
        allied craftworker, cement mason, glazier, glassworker, painter, 
        allied tradesworker, or plasterer who is employed by the city of 
        St. Paul or independent school district No. 625, St. Paul, on 
        the effective date of this section and who has pension coverage 
        under a collective bargaining agreement by the bricklayers and 
        allied craftworkers local 1 pension plan, the cement masons 
        local 633 pension plan, the glaziers and glassworkers local 
        L-1324 pension plan, the painters and allied trades local 61 
        pension plan, or the Twin Cities plasterers local 265 pension 
        plan may elect to be excluded from pension coverage by the 
        public employees retirement association. 
           (b) A plumber who is employed by the metropolitan airports 
        commission on the effective date of this section and who has 
        pension coverage under a collective bargaining agreement by the 
        plumbers local 34 pension plan may elect to be excluded from 
        pension coverage by the public employees retirement association. 
           (c) The exclusion election under this section must be made 
        in writing on a form prescribed by the executive director of the 
        public employees retirement association and must be filed with 
        the executive director.  The exclusion election is irrevocable.  
        Authority to make the coverage exclusion expires on January 1, 
        2002. 
           Subd. 2.  [ELIGIBILITY FOR MEMBER CONTRIBUTION REFUND.] A 
        person who has less than three years of allowable service in the 
        public employees retirement association and who elects the 
        pension coverage exclusion under subdivision 1 is entitled to 
        immediately apply for a refund under Minnesota Statutes, section 
        353.34, subdivisions 1 and 2, following the effective date of 
        the exclusion election. 
           Subd. 3.  [DEFERRED ANNUITY ELIGIBILITY.] In lieu of the 
        refund under subdivision 2, a person who elects the pension 
        coverage exclusion under subdivision 1 is entitled to a deferred 
        retirement annuity under Minnesota Statutes, sections 353.34, 
        subdivision 3; and 353.71, subdivision 2, based on any length of 
        allowable service credit under Minnesota Statutes, section 
        353.01, subdivision 16, to the credit of the person as of the 
        date of the coverage exclusion election. 
           Sec. 7.  [DAKOTA COUNTY AGRICULTURAL SOCIETY EMPLOYEE 
        PENSION CERTIFICATION.] 
           Notwithstanding Minnesota Statutes, section 383D.49, the 
        Dakota county board of commissioners may certify to the 
        executive director of the public employees retirement 
        association that full-time employees of the Dakota county 
        agricultural society are county employees for purposes of 
        retirement coverage under Minnesota Statutes, chapter 353, which 
        status must be accorded to all similarly situated Dakota county 
        agricultural society employees. 
           Sec. 8.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
           (a) Sections 1, 3, 4, and 5 are effective the day after the 
        governing body of Dakota county and its chief clerical officer 
        timely complete their compliance with Minnesota Statutes, 
        section 645.021, subdivisions 2 and 3. 
           (b) Section 7 is effective the day after the governing 
        board of Dakota county and its chief clerical officer timely 
        complete their compliance with Minnesota Statutes, section 
        645.021, subdivisions 2 and 3, and certification to the 
        executive director of the public employees retirement 
        association. 
           (c) Sections 2 and 6 are effective for bricklayers, allied 
        craftworkers, cement masons, glaziers, glassworkers, painters, 
        allied tradesworkers, and plasterers employed by the city of St. 
        Paul or independent school district No. 625, St. Paul, as 
        applicable, on the day following approval by majority vote of 
        the St. Paul city council or governing board of independent 
        school district No. 625, St. Paul, as applicable, and compliance 
        with Minnesota Statutes, section 645.021. 
           (d) Sections 2 and 6 are effective for plumbers employed by 
        the metropolitan airports commission on the day following 
        approval by majority vote of the metropolitan airports 
        commission and compliance with Minnesota Statutes, section 
        645.021. 

                                   ARTICLE 11 
           REMEDIAL MEASURES FOR THE PERA-GENERAL FUNDING DEFICIENCY
           Section 1.  Minnesota Statutes 2000, section 353.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TERMS.] Unless the language or context 
        clearly indicates that a different meaning is intended, each of 
        the following terms, for the purposes of this chapter, shall 
        be has the meaning given the meanings subjoined to them it. 
           Sec. 2.  Minnesota Statutes 2000, section 353.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PUBLIC EMPLOYEE.] "Public employee" means an a 
        governmental employee performing personal services for a 
        governmental subdivision under defined in subdivision 6, whose 
        salary is paid, in whole or in part, from revenue derived from 
        taxation, fees, assessments, or from other sources.  The 
        term also includes special the classes of persons described or 
        listed in subdivision 2a, but.  The term also includes persons 
        who elect association membership under subdivision 2d, paragraph 
        (a), and persons for whom the applicable governmental 
        subdivision had elected association membership under subdivision 
        2d, paragraph (b).  The term excludes special the classes of 
        persons listed in subdivision 2b for purposes of membership in 
        the association.  Public employee does not include independent 
        contractors and their employees.  A reemployed annuitant under 
        section 353.37 must not be considered to be a public employee 
        for purposes of that reemployment. 
           Sec. 3.  Minnesota Statutes 2000, section 353.01, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [INCLUDED EMPLOYEES.] (a) Public employees whose 
        salary from one governmental subdivision exceeds $425 in any 
        month shall participate as members of the association.  If the 
        salary of an employee is less than $425 in a subsequent month, 
        the employee retains membership eligibility.  The following 
        persons are considered public employees: 
           (1) employees whose annual salary from one governmental 
        subdivision exceeds a stipulation prepared in advance, in 
        writing, to be not more than $5,100 per calendar year or per 
        school year for school employees for employment expected to be 
        of a full year's duration or more than the prorated portion of 
        $5,100 per employment period expected to be of less than a full 
        year's duration.  If compensation from one governmental 
        subdivision to an employee under this clause exceeds $5,100 per 
        calendar year or school year after being stipulated in advance 
        not to exceed that amount, the stipulation is no longer valid 
        and contributions must be made on behalf of the employee under 
        section 353.27, subdivision 12, from the month in which the 
        employee's salary first exceeded $425; 
           (2) employees whose total salary from concurrent 
        nontemporary positions in one governmental subdivision exceeds 
        $425 in any month; 
           (3) elected officers for service to which they were elected 
        by the public-at-large, or persons appointed to fill a vacancy 
        in an elective office, who elect to participate by filing an 
        application for membership, but not for service on a joint or 
        regional board that is a governmental subdivision under 
        subdivision 6, paragraph (a), unless the salary earned for that 
        service exceeds $425 in any month.  The option to become a 
        member, once exercised, may not be withdrawn during the 
        incumbency of the person in office; 
           (4) members who are appointed by the governor to be a state 
        department head and elect not to be covered by the Minnesota 
        state retirement system under section 352.021; 
           (5) employees of elected officers; 
           (6) persons who elect to remain members under section 
        480.181, subdivision 2; 
           (7) employees of a school district who receive separate 
        salaries for driving their own buses; 
           (8) employees of the Minnesota association of townships 
        when the board of the association, at its option, certifies to 
        the executive director that its employees are to be included for 
        purposes of retirement coverage, in which case coverage of all 
        employees of the association is permanent; 
           (9) employees of a county historical society who are county 
        employees; 
           (10) employees of a county historical society located in 
        the county whom the county, at its option, certifies to the 
        executive director to be county employees for purposes of 
        retirement coverage under this chapter, which status must be 
        accorded to all similarly situated county historical society 
        employees and, once established, must continue as long as a 
        person is an employee of the county historical society and is 
        not excluded under subdivision 2b; and 
           (11) employees who became members before July 1, 1988, 
        based on the total salary of positions held in more than one 
        governmental subdivision. shall participate as members of the 
        association with retirement coverage by the public employees 
        retirement plan or the public employees police and fire 
        retirement plan under this chapter, or the local government 
        correctional employees retirement plan under chapter 353E, 
        whichever applies, as a condition of their employment on the 
        first day of employment unless they: 
           (1) are specifically excluded under subdivision 2b; 
           (2) do not exercise their option to elect retirement 
        coverage in the association as provided in subdivision 2d, 
        paragraph (a); or 
           (3) are employees of the governmental subdivisions listed 
        in subdivision 2d, paragraph (b), where the governmental 
        subdivision has not elected to participate as a governmental 
        subdivision covered by the association. 
           (b) A public employee who was a member of the association 
        on June 30, 2002, based on employment that qualified for 
        membership coverage by the public employees retirement plan or 
        the public employees police and fire plan under this chapter, or 
        the local government correctional employees retirement plan 
        under chapter 353E as of June 30, 2002, retains that membership 
        until the employee terminates public employment under 
        subdivision 11a or terminates membership under subdivision 11b. 
           Sec. 4.  Minnesota Statutes 2000, section 353.01, 
        subdivision 2b, is amended to read: 
           Subd. 2b.  [EXCLUDED EMPLOYEES.] The following public 
        employees shall are not eligible to participate as members of 
        the association with retirement coverage by the public employees 
        retirement plan, the local government correctional employees 
        retirement plan under chapter 353E, or the public employees 
        police and fire retirement plan: 
           (1) elected public officers, other than county sheriffs, 
        who are elected to a governing body, or persons who are 
        appointed to fill a vacancy in an elective office, who do not 
        elect to participate in the association by filing an application 
        for membership of a governing body, whose term of office first 
        commences on or after July 1, 2002, for the service to be 
        rendered in that elective position.  Elected governing body 
        officials who were active members of the association's 
        coordinated or basic retirement plans as of June 30, 2002, 
        continue participation throughout incumbency in office until 
        termination of public service occurs as defined in subdivision 
        11a; 
           (2) election officers or election judges; 
           (3) patient and inmate personnel who perform services in 
        charitable, penal, or correctional institutions of for a 
        governmental subdivision; 
           (4) employees who are hired for a temporary position under 
        subdivision 12a, and employees who resign from a nontemporary 
        position and accept a temporary position within 30 days in the 
        same governmental subdivision, but not those.  An employer must 
        not apply the definition of temporary position so as to exclude 
        employees who are hired for an unlimited period to fill 
        positions that are permanent or that are for an unspecified 
        period but who are serving a probationary period at the start of 
        the employment.  If the period of employment extends beyond six 
        consecutive months and the employee earns more than $425 from 
        one governmental subdivision in any one calendar month, the 
        department head shall report the employee for membership and 
        require employee deductions be made on behalf of the employee 
        under section 353.27, subdivision 4. 
           The membership eligibility of an employee who resigns or is 
        dismissed from a temporary position and within 30 days accepts 
        another temporary position in the same governmental subdivision 
        is determined on the total length of employment rather than on 
        each separate position.  Membership eligibility of an employee 
        who holds concurrent temporary and nontemporary positions in one 
        governmental subdivision is determined by the length of 
        employment and salary of each separate position; 
           (5) employees whose actual salary from one governmental 
        subdivision does not exceed $425 per month, or whose annual 
        salary from one governmental subdivision does not exceed a 
        stipulation prepared in advance, in writing, that the salary 
        must not exceed $5,100 per calendar year or per school year for 
        school employees for employment expected to be of a full year's 
        duration or more than the prorated portion of $5,100 per 
        employment period for employment expected to be of less than a 
        full year's duration; 
           (6) employees who are employed by reason of work emergency 
        caused by fire, flood, storm, or similar disaster; 
           (7) (6) employees who by virtue of their employment in one 
        governmental subdivision are required by law to be a member of 
        and to contribute to any of the plans or funds administered by 
        the Minnesota state retirement system, the teachers retirement 
        association, the Duluth teachers retirement fund association, 
        the Minneapolis teachers retirement association, the St. Paul 
        teachers retirement fund association, the Minneapolis employees 
        retirement fund, or any police or firefighters relief 
        association governed by section 69.77 that has not consolidated 
        with the public employees retirement association, or any local 
        police or firefighters consolidation account but who have not 
        elected the type of benefit coverage provided by the public 
        employees police and fire fund under sections 353A.01 to 
        353A.10, or any persons covered by section 353.665, subdivision 
        4, 5, or 6, who have not elected public employees police and 
        fire plan benefit coverage.  This clause must not be construed 
        to prevent a person from being a member of and contributing to 
        the public employees retirement association and also belonging 
        to and contributing to another public pension fund for other 
        service occurring during the same period of time.  A person who 
        meets the definition of "public employee" in subdivision 2 by 
        virtue of other service occurring during the same period of time 
        becomes a member of the association unless contributions are 
        made to another public retirement fund on the salary based on 
        the other service or to the teachers retirement association by a 
        teacher as defined in section 354.05, subdivision 2; 
           (8) (7) persons who are members of a religious order and 
        are excluded from coverage under the federal Old Age, Survivors, 
        Disability, and Health Insurance Program for the performance of 
        service as specified in United States Code, title 42, section 
        410(a)(8)(A), as amended through January 1, 1987, if no 
        irrevocable election of coverage has been made under section 
        3121(r) of the Internal Revenue Code of 1954, as amended; 
           (9) full-time students who (8) employees who at the time 
        they are hired by a governmental subdivision are enrolled and on 
        a full-time basis to attend or are regularly attending classes 
        at an accredited school, college, or university and who are 
        part-time employees as defined by a governmental subdivision in 
        an undergraduate, graduate, or professional-technical program, 
        or a public or charter high school, if the employment is 
        predicated on the student status of the individual; 
           (10) (9) resident physicians, medical interns, and 
        pharmacist residents and pharmacist interns who are serving in a 
        degree or residency program in public hospitals; 
           (11) (10) students who are serving in an internship or 
        residency program sponsored by an accredited educational 
        institution; 
           (12) (11) persons who hold a part-time adult supplementary 
        technical college license who render part-time teaching service 
        in a technical college; 
           (13) (12) foreign citizens working for a governmental 
        subdivision with a work permit of less than three years, or an 
        H-1b visa valid for less than three years of employment.  Upon 
        notice to the association that the work permit or visa extends 
        beyond the three-year period, the foreign citizens are eligible 
        for membership from the date of the extension; 
           (14) (13) public hospital employees who elected not to 
        participate as members of the association before 1972 and who 
        did not elect to participate from July 1, 1988, to October 1, 
        1988; 
           (15) (14) except as provided in section 353.86, volunteer 
        ambulance service personnel, as defined in subdivision 35, but 
        persons who serve as volunteer ambulance service personnel may 
        still qualify as public employees under subdivision 2 and may be 
        members of the public employees retirement association and 
        participants in the public employees retirement fund or the 
        public employees police and fire fund, whichever applies, on the 
        basis of compensation received from public employment service 
        other than service as volunteer ambulance service personnel; 
           (16) (15) except as provided in section 353.87, volunteer 
        firefighters, as defined in subdivision 36, engaging in 
        activities undertaken as part of volunteer firefighter duties; 
        provided that a person who is a volunteer firefighter may still 
        qualify as a public employee under subdivision 2 and may be a 
        member of the public employees retirement association and a 
        participant in the public employees retirement fund or the 
        public employees police and fire fund, whichever applies, on the 
        basis of compensation received from public employment activities 
        other than those as a volunteer firefighter; 
           (17) (16) pipefitters and associated trades personnel 
        employed by independent school district No. 625, St. Paul, with 
        coverage by the pipefitters local 455 pension plan under a 
        collective bargaining agreement who were either first employed 
        after May 1, 1997, or, if first employed before May 2, 1997, 
        elected to be excluded under Laws 1997, chapter 241, article 2, 
        section 12; and 
           (18) (17) electrical workers, plumbers, carpenters, and 
        associated trades personnel employed by independent school 
        district No. 625, St. Paul, or the city of St. Paul, with who 
        have retirement coverage by the electrical workers local 110 
        pension plan, the united association plumbers local 34 pension 
        plan, or the carpenters local 87 pension plan under a collective 
        bargaining agreement who were either first employed after May 1, 
        2000, or, if first employed before May 2, 2000, elected to be 
        excluded under Laws 2000, chapter 461, article 7, section 5.; 
           (18) employees who are hired after June 30, 2002, to fill 
        seasonal positions under subdivision 12b which are limited in 
        duration by the employer to 185 consecutive calendar days or 
        less in each business year of the governmental subdivision; 
           (19) persons who are provided supported employment or 
        work-study positions by a governmental subdivision and who 
        participate in an employment or industries program maintained 
        for the benefit of these persons where the governmental 
        subdivision limits the position's duration to three years or 
        less, including persons participating in a federal or state 
        subsidized on-the-job training, work experience, senior citizen, 
        youth, or unemployment relief program where the training or work 
        experience is not provided as a part of, or for, future 
        permanent public employment; 
           (20) independent contractors and the employees of 
        independent contractors; and 
           (21) reemployed annuitants of the association during the 
        course of that reemployment. 
           Sec. 5.  Minnesota Statutes 2000, section 353.01, is 
        amended by adding a subdivision to read: 
           Subd. 2d.  [OPTIONAL MEMBERSHIP.] (a) Membership in the 
        association is optional by action of the individual employee for 
        the following public employees who meet the conditions set forth 
        in subdivision 2a: 
           (1) members of the coordinated plan who are also employees 
        of labor organizations as defined in section 353.017, 
        subdivision 1, for their employment by the labor organization 
        only if they elect to have membership under section 353.017, 
        subdivision 2; 
           (2) persons who are elected or persons who are appointed to 
        elected positions other than local governing body elected 
        positions who elect to participate by filing a written election 
        for membership; 
           (3) members of the association who are appointed by the 
        governor to be a state department head and who elect not to be 
        covered by the general state employees retirement plan of the 
        Minnesota state retirement system under section 352.021; and 
           (4) city managers as defined in section 353.028, 
        subdivision 1, who do not elect to be excluded from membership 
        in the association under section 353.028, subdivision 2. 
           (b) Membership in the association is optional by action of 
        the governmental subdivision for the employees of the following 
        governmental subdivisions under the conditions specified: 
           (1) the Minnesota association of townships if the board of 
        the association, at its option, certifies to the executive 
        director that its employees are to be included for purposes of 
        retirement coverage, in which case the status of the association 
        as a participating employer is permanent; and 
           (2) a county historical society if the county in which the 
        historical society is located, at its option, certifies to the 
        executive director that the employees of the historical society 
        are to be county employees for purposes of retirement coverage 
        under this chapter.  The status as a county employee must be 
        accorded to all similarly situated county historical society 
        employees and, once established, must continue as long as a 
        person is an employee of the county historical society. 
           (c) For employees who are covered by paragraph (a), clause 
        (1), (2), or (3), or covered by paragraph (b), if the necessary 
        membership election is not made, the employee is excluded from 
        retirement coverage under this chapter.  For employees who are 
        covered by paragraph (a), clause (4), if the necessary election 
        is not made, the employee must become a member and have 
        retirement coverage under this chapter.  The option to become a 
        member, once exercised under this subdivision, may not be 
        withdrawn until termination of public service as defined under 
        subdivision 11a. 
           Sec. 6.  Minnesota Statutes 2000, section 353.01, 
        subdivision 7, is amended to read: 
           Subd. 7.  [MEMBER.] "Member" means a person who accepts 
        employment as a "public employee" under subdivision 2, who is an 
        employee who works in one or more positions that require or 
        allow membership in the association under subdivision 2a or 
        2d, for whom contributions have been withheld from salary and 
        who is not covered by the plan established in chapter 353D or 
        excluded under subdivision 2b.  A person who is a member remains 
        a member while performing services as a public employee and 
        while on an authorized leave of absence or an authorized 
        temporary layoff. 
           Sec. 7.  Minnesota Statutes 2000, section 353.01, 
        subdivision 11b, is amended to read: 
           Subd. 11b.  [TERMINATION OF MEMBERSHIP.] (a) "Termination 
        of membership" means the conclusion of membership in the 
        association and occurs: 
           (1) upon termination of public service under subdivision 
        11a; 
           (2) when a member who is a part-time employee is excluded 
        from membership as a full-time student under subdivision 2b, 
        clause (9); 
           (3) when a member does not return to work within 30 days of 
        the expiration of an authorized temporary layoff under 
        subdivision 12 or an authorized leave of absence under 
        subdivision 31.  If the employee subsequently returns to a 
        position in the same governmental subdivision, the employee 
        shall not again be required to earn a salary in excess of $425 
        per month, unless the employee has taken a refund of accumulated 
        employee deductions plus interest under section 353.34, 
        subdivision 1 as evidenced by the appropriate record filed by 
        the governmental subdivision; or 
           (4) (3) when a person files a written election to 
        discontinue employee deductions under section 353.27, 
        subdivision 7, paragraph (a), clause (1). 
           (b) The termination of membership must be reported to the 
        association by the governmental subdivision. 
           Sec. 8.  Minnesota Statutes 2000, section 353.01, 
        subdivision 12a, is amended to read: 
           Subd. 12a.  [TEMPORARY POSITION.] (1) "Temporary position" 
        means an employment position predetermined by the employer at 
        the time of hiring to be a period of six months or less or.  
        Temporary position also means an employment position occupied by 
        a person hired by the employer as a temporary replacement who is 
        employed for a predetermined period of six months or less. 
           (2) "Temporary position" does not mean an employment 
        position for an unlimited period a specified term in which a 
        person serves a probationary period or works an irregular 
        schedule as a requirement for subsequent employment on a 
        permanent or unlimited basis. 
           Sec. 9.  Minnesota Statutes 2000, section 353.01, is 
        amended by adding a subdivision to read: 
           Subd. 12b.  [SEASONAL POSITION.] "Seasonal position" means 
        a position where the nature of the work or its duration are 
        related to a specific season or seasons of the year, regardless 
        of whether or not the employing agency anticipates that the same 
        employee will return to the position each season in which it 
        becomes available.  The entire period of employment in a 
        business year must be used to determine whether or not a 
        position may be excluded as seasonal when there is less than a 
        30-day break between one seasonal position and a subsequent 
        seasonal position for employment with the same governmental 
        employer.  Seasonal positions include, but are not limited to, 
        coaching athletic activities or employment to plow snow or to 
        maintain roads or parks, or to operate skating rinks, ski 
        lodges, golf courses, or swimming pools. 
           Sec. 10.  Minnesota Statutes 2000, section 353.01, 
        subdivision 16, is amended to read: 
           Subd. 16.  [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 
        "Allowable service" means: 
           (1) service during years of actual membership in the course 
        of which employee contributions were made, periods covered by 
        payments in lieu of salary deductions under section 353.35, and; 
           (2) service in years during which the public employee was 
        not a member but for which the member later elected, while a 
        member, to obtain credit by making payments to the fund as 
        permitted by any law then in effect.; 
           (b) "Allowable service" also means (3) a period of 
        authorized leave of absence with pay from which deductions for 
        employee contributions are made, deposited, and credited to the 
        fund.; 
           (c) "Allowable service" also means (4) a period of 
        authorized personal, parental, or medical leave of absence 
        without pay, including a leave of absence covered under the 
        federal Family Medical Leave Act, that does not exceed one year, 
        and during or for which a member obtained full or fractional 
        service credit for each month in the leave period by payments to 
        the fund made in place of salary deductions, provided that.  The 
        payments are must be made in an amount or amounts based on the 
        member's average salary on which deductions were paid for the 
        last six months of public service, or for that portion of the 
        last six months while the member was in public service, to apply 
        to the period in either case that immediately preceding precedes 
        the commencement of the leave of absence.  If the employee 
        elects to pay the employee contributions for the period of 
        any authorized personal, parental, or medical leave of absence 
        without pay, or for any portion of the leave, the employee shall 
        also, as a condition to the exercise of the election, pay to the 
        fund an amount equivalent to both the required employer and the 
        additional employer contributions, if any, for the employee.  
        The payment must be made within one year from the expiration of 
        the leave of absence or within 20 days after termination of 
        public service under subdivision 11a.  The employer, if by 
        appropriate action of its governing body, which is made a part 
        of its official records, and which is adopted before the date of 
        the first payment of the employee contribution, may certify to 
        the association in writing its commitment to pay the employer 
        and additional employer contributions from the proceeds of a tax 
        levy made under section 353.28.  Payments under this paragraph 
        must include interest at an annual rate of 8.5 percent 
        compounded annually from the date of the termination of the 
        leave of absence to the date payment is made.  An employee shall 
        return to public service and receive render a minimum of three 
        months of allowable service in order to be eligible to pay 
        employee and employer contributions for a subsequent authorized 
        leave of absence without pay.  Upon payment, the employee must 
        be granted allowable service credit for full calendar months or 
        fractions of a month during the leave period as described in 
        paragraph (d), clauses (1) and (2), based on the salary or the 
        compensated hours used in computing the payment amount; 
           (d) "Allowable service" also means (5) a periodic, 
        repetitive leave that is offered to all employees of a 
        governmental subdivision.  The leave program may not exceed 208 
        hours per annual normal work cycle as certified to the 
        association by the employer.  A participating member obtains 
        service credit by making employee contributions in an amount or 
        amounts based on the member's average salary that would have 
        been paid if the leave had not been taken.  The employer shall 
        pay the employer and additional employer contributions on behalf 
        of the participating member.  The employee and the employer are 
        responsible to pay interest on their respective shares at the 
        rate of 8.5 percent a year, compounded annually, from the end of 
        the normal cycle until full payment is made.  An employer shall 
        also make the employer and additional employer contributions, 
        plus 8.5 percent interest, compounded annually, on behalf of an 
        employee who makes employee contributions but terminates public 
        service.  The employee contributions must be made within one 
        year after the end of the annual normal working cycle or within 
        20 days after termination of public service, whichever is 
        sooner.  The association shall prescribe the manner and forms to 
        be used by a governmental subdivision in administering a 
        periodic, repetitive leave.  Upon payment, the member must be 
        granted allowable service credit for full calendar months or 
        fractions of a month during the leave period as described in 
        paragraph (d), clauses (1) and (2), based on the salary or the 
        compensated hours used in computing the payment amount; 
           (e) "Allowable service" also means a period during which a 
        member is on an authorized sick leave of absence, without pay, 
        limited to one year.  An employee who has received one year of 
        allowable service shall return to public service and receive a 
        minimum of three months of allowable service to receive 
        allowable service for a subsequent authorized sick leave of 
        absence. 
           (f) "Allowable service" also means (6) an authorized 
        temporary layoff under subdivision 12,.  For temporary layoffs 
        that begin before January 1, 2002, allowable service credit is 
        limited to three months allowable service per authorized 
        temporary layoff in one calendar year.  An employee who has 
        received the maximum service allowed for an authorized temporary 
        layoff shall return to public service and receive a minimum of 
        three months of allowable service to receive allowable service 
        for a subsequent authorized temporary layoff.  For temporary 
        layoffs that begin on or after January 1, 2002, allowable 
        service credit for the calendar month in which the member does 
        not receive salary due to the layoff must be determined using 
        the following formula: 
           (i) members who earned one month of allowable service 
        credit for each of the nine calendar months of compensated 
        employment with the governmental subdivision authorizing the 
        layoff that immediately preceded the layoff shall receive one 
        month of allowable service credit, limited to three months of 
        allowable service credit per year, for each month of the 
        temporary layoff; or 
           (ii) members who earned less than nine months of allowable 
        service credit in the year of compensated employment with the 
        governmental subdivision authorizing the layoff that immediately 
        preceded the layoff shall receive allowable service credit on a 
        fractional basis for each month of the authorized layoff, 
        limited to three months of allowable service credit, determined 
        by dividing the total number of months of service credit earned 
        for the compensated employment by nine and multiplying the 
        resulting number by the total number of months in the layoff 
        period that are not compensated; or 
           (g) Notwithstanding any law to the contrary, "allowable 
        service" also means a parental leave.  The association shall 
        grant a maximum of two months service credit for a parental 
        leave, within six months after the birth or adoption, upon 
        documentation from the member's governmental subdivision or 
        presentation of a birth certificate or other evidence of birth 
        or adoption to the association. 
           (h) "Allowable service" also means (7) a period during 
        which a member is on an authorized leave of absence to enter 
        military service in the armed forces of the United States, 
        provided that the member returns to public service upon 
        discharge from military service under section 192.262 and pays 
        into the fund employee contributions based upon the employee's 
        salary at the date of return from military service.  Payment 
        must be made within three times the length of the military leave 
        period, or five years of the date of discharge from the military 
        service, whichever is less.  The amount of these contributions 
        must be in accord with the contribution rates and salary 
        limitations, if any, in effect during the leave, plus interest 
        at an annual rate of 8.5 percent compounded annually from the 
        date of return to public service to the date payment is made.  
        The matching employer contribution and additional employer 
        contribution under section 353.27, subdivisions 3 and 3a, must 
        be paid by the governmental subdivision employing the member 
        upon return to public service if the member makes the employee 
        contributions.  The governmental subdivision involved may 
        appropriate money for those payments.  A member may not receive 
        credit for a voluntary extension of military service at the 
        instance of the member beyond the initial period of enlistment, 
        induction, or call to active duty.  Upon payment, the employee 
        must be granted allowable service credit for full calendar 
        months or fractions of a month during the leave period as 
        described in paragraph (d), clauses (1) and (2), based on the 
        salary or compensated hours used in computing the payment amount.
           (i) (b) For calculating benefits under sections 353.30, 
        353.31, 353.32, and 353.33 for state officers and employees 
        displaced by the Community Corrections Act, chapter 401, and 
        transferred into county service under section 401.04, "allowable 
        service" means combined years of allowable service as defined in 
        paragraphs paragraph (a) to (i), clauses (1) to (6), and section 
        352.01, subdivision 11.  
           (j) (c) For a public employee who has prior service covered 
        by a local police or firefighters relief association that has 
        consolidated with the public employees retirement association or 
        to which section 353.665 applies, and who has elected the type 
        of benefit coverage provided by the public employees police and 
        fire fund either under section 353A.08 following the 
        consolidation or under section 353.665, subdivision 4, 
        "applicable service" is a period of service credited by the 
        local police or firefighters relief association as of the 
        effective date of the consolidation based on law and on bylaw 
        provisions governing the relief association on the date of the 
        initiation of the consolidation procedure. 
           (d) For persons who, after January 1, 2002, either first 
        become members or terminated membership under subdivision 11b, 
        and again become members, of the public employees retirement 
        plan, the public employees police and fire plan under this 
        chapter, or the local government correctional employee 
        retirement plan under chapter 353E, whichever applies, 
        "allowable service" means credit for compensated hours from 
        which deductions are made, or for which payments are made in 
        lieu of salary deductions as provided under this subdivision, 
        and which are deposited and credited in the fund as provided in 
        section 353.27, determined as follows: 
           (1) one month of allowable service credit for each month 
        during which the employee has received salary for 80 or more 
        compensated hours; or 
           (2) a fraction of one month of allowable service for each 
        month for which the employee has received salary for less than 
        80 compensated hours equal to the percentage relationship that 
        the number of compensated hours bear to 80 hours. 
           (e) Elected officials and other public employees who are 
        compensated solely on an annual basis shall be granted a full 
        year of credit for each year for which compensation is earned. 
           (f) Allowable service that is determined and credited on a 
        fractional basis must be used only in calculating the amount of 
        benefits payable.  In determining the length of service required 
        for vesting, a member shall be granted a month of service credit 
        for each month in which the member received compensation from 
        which employee contributions were deducted.  For periods of 
        part-time service that are duplicated service credit, section 
        356.30, subdivision 1, paragraphs (g) and (h), govern. 
           (g) No member shall receive more than 12 months of 
        allowable service credit in a year either for vesting purposes 
        or for benefit calculation purposes. 
           Sec. 11.  Minnesota Statutes 2000, section 353.01, is 
        amended by adding a subdivision to read: 
           Subd. 38.  [BUSINESS YEAR.] "Business year" means the first 
        day of the first full pay period through the last day of the 
        last full pay period of the 12-month fiscal year applicable to 
        the respective governmental subdivision. 
           Sec. 12.  Minnesota Statutes 2000, section 353.01, is 
        amended by adding a subdivision to read: 
           Subd. 39.  [COMPENSATED HOURS.] "Compensated hours" means 
        the hours during which an employee performs services in one or 
        more positions for a single governmental subdivision for which 
        the employee receives compensation.  The term also includes the 
        following: 
           (1) paid holiday hours for which the employee is not 
        required to work; 
           (2) paid used sick leave hours; 
           (3) paid used personal leave hours and vacation hours; and 
           (4) the paid hours drawn from accrued compensatory time. 
           Sec. 13.  Minnesota Statutes 2000, section 353.27, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EMPLOYEE CONTRIBUTION.] (a) The employee 
        contribution is an the following applicable percentage of total 
        salary amount (1) for a "basic member" equal to 8.75 percent of 
        total salary; and (2) for a "coordinated member" equal to 4.75 
        percent of total salary.: 
                                 Basic Program     Coordinated Program
        Before January 1, 2002          8.75                  4.75  
        Effective January 1, 2002       9.10                  5.10  
           (b) These contributions must be made by deduction from 
        salary in the manner provided in subdivision 4.  Where any 
        portion of a member's salary is paid from other than public 
        funds, such member's employee contribution must be based on the 
        total salary received from all sources. 
           Sec. 14.  Minnesota Statutes 2000, section 353.27, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EMPLOYER CONTRIBUTION.] (a) The employer 
        contribution is an the following applicable percentage of total 
        salary amount equal to the employee contribution under 
        subdivision 2.: 
                                Basic Program      Coordinated Program  
        Before January 1, 2002        8.75                  4.75 
        Effective January 1, 2002     9.10                  5.10  
           (b) This contribution must be made from funds available to 
        the employing subdivision by the means and in the manner 
        provided in section 353.28. 
           Sec. 15.  Minnesota Statutes 2000, section 353.27, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS; 
        MEMBER STATUS.] (a) A representative authorized by the head of 
        each department shall deduct employee contributions from the 
        salary of each employee who qualifies for membership under this 
        chapter and remit payment in a manner prescribed by the 
        executive director for the aggregate amount of the employee 
        contributions, the employer contributions and the additional 
        employer contributions to be received within 14 calendar days.  
        The head of each department or the person's designee shall for 
        each pay period submit to the association a salary deduction 
        report in the format prescribed by the executive director.  Data 
        to be submitted as part of salary deduction reporting must 
        include, but are not limited to:  
           (1) the legal names and social security numbers of 
        employees who are members; 
           (2) the amount of each employee's salary deduction; 
           (3) the amount of salary from which each deduction was 
        made; 
           (4) the beginning and ending dates of the payroll period 
        covered and the date of actual payment; and 
           (5) adjustments or corrections covering past pay periods; 
        and 
           (6) the number of compensated hours of each employee during 
        the payroll period.  
           (b) Employers must furnish the data required for enrollment 
        for each new employee who qualifies for membership in the format 
        prescribed by the executive director.  The required enrollment 
        data on new employees must be submitted to the association prior 
        to or concurrent with the submission of the initial employee 
        salary deduction.  The employer shall also report to the 
        association all member employment status changes, such as leaves 
        of absence, terminations, and death, and the effective dates of 
        those changes, on an ongoing basis for the payroll cycle in 
        which they occur.  The employer shall furnish data, forms, and 
        reports as may be required by the executive director for proper 
        administration of the retirement system.  Before implementing 
        new or different computerized reporting requirements, the 
        executive director shall give appropriate advance notice to 
        governmental subdivisions to allow time for system modifications.
           (c) Notwithstanding paragraph (a), the association may 
        provide for less frequent reporting and payments for small 
        employers. 
           Sec. 16.  Minnesota Statutes 2000, section 353.27, 
        subdivision 11, is amended to read: 
           Subd. 11.  [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 
        INFORMATION.] All governmental subdivisions shall furnish 
        promptly such other information relative to the employment 
        status of all employees or former employees, including but not 
        limited to payroll abstracts pertaining to all past and present 
        employees, as may be requested by the association or its 
        executive director, including schedules of salaries applicable 
        to various categories of employment, and the number of actual or 
        estimated compensated hours for employees.  In the event payroll 
        abstract records have been lost or destroyed, for whatever 
        reason or in whatever manner, so that such schedules of salaries 
        cannot be furnished therefrom, the employing governmental 
        subdivision, in lieu thereof, shall furnish to the association 
        an estimate of the earnings of any employee or former employee 
        for any period as may be requested by the association or its 
        executive director. Should the association receive such 
        schedules of estimated earnings, the executive director is 
        hereby authorized to use the same as a basis for making whatever 
        computations might be necessary for determining obligations of 
        the employee and employer to the retirement fund.  If estimates 
        are not furnished by the employer pursuant to the request of the 
        association or its executive director, the association may 
        estimate the obligations of the employee and employer to the 
        retirement fund based upon such records as are in its 
        possession.  Where payroll abstracts have been lost or 
        destroyed, the governmental agency need not furnish any 
        information pertaining to employment prior to July 1, 1963. The 
        association shall make no estimate of any obligation of any 
        employee, former employee, or employer covering employment prior 
        to July 1, 1963. 
           Sec. 17.  Minnesota Statutes 2000, section 353.86, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PARTICIPATION.] Volunteer ambulance 
        service personnel, as defined in section 353.01, subdivision 35, 
        who are or become members of and participants in the public 
        employees retirement fund or the public employees police and 
        fire fund before July 1, 2002, and make contributions to either 
        of those funds based on compensation for service other than 
        volunteer ambulance service may elect to participate in that 
        same fund with respect to compensation received for volunteer 
        ambulance service, provided that the volunteer ambulance service 
        is not credited to another public or private pension plan 
        including the public employees retirement plan established by 
        chapter 353D and provided further that the volunteer ambulance 
        service is rendered for the same governmental unit for which the 
        nonvolunteer ambulance service is rendered. 
           Sec. 18.  Minnesota Statutes 2000, section 356.215, 
        subdivision 4g, is amended to read: 
           Subd. 4g.  [AMORTIZATION CONTRIBUTIONS.] (a) In addition to 
        the exhibit indicating the level normal cost, the actuarial 
        valuation must contain an exhibit indicating the additional 
        annual contribution sufficient to amortize the unfunded 
        actuarial accrued liability.  For funds governed by chapters 3A, 
        352, 352B, 352C, 353, 354, 354A, and 490, the additional 
        contribution must be calculated on a level percentage of covered 
        payroll basis by the established date for full funding in effect 
        when the valuation is prepared.  For funds governed by chapter 
        3A, sections 352.90 through 352.951, chapters 352B, 352C, 
        sections 353.63 through 353.68, and chapters 353C, 354A, and 
        490, the level percent additional contribution must be 
        calculated assuming annual payroll growth of 6.5 percent.  For 
        funds governed by sections 352.01 through 352.86 and chapter 
        354, the level percent additional contribution must be 
        calculated assuming an annual payroll growth of five percent.  
        For the fund governed by sections 353.01 through 353.46, the 
        level percent additional contribution must be calculated 
        assuming an annual payroll growth of six percent.  For all other 
        funds, the additional annual contribution must be calculated on 
        a level annual dollar amount basis. 
           (b) For any fund other than the Minneapolis employees 
        retirement fund and the public employees retirement association 
        general plan, after the first actuarial valuation date occurring 
        after June 1, 1989, if there has not been a change in the 
        actuarial assumptions used for calculating the actuarial accrued 
        liability of the fund, a change in the benefit plan governing 
        annuities and benefits payable from the fund, a change in the 
        actuarial cost method used in calculating the actuarial accrued 
        liability of all or a portion of the fund, or a combination of 
        the three, which change or changes by themselves without 
        inclusion of any other items of increase or decrease produce a 
        net increase in the unfunded actuarial accrued liability of the 
        fund, the established date for full funding for the first 
        actuarial valuation made after June 1, 1989, and each successive 
        actuarial valuation is the first actuarial valuation date 
        occurring after June 1, 2020.  
           (c) For any fund or plan other than the Minneapolis 
        employees retirement fund and the public employees retirement 
        association general plan, after the first actuarial valuation 
        date occurring after June 1, 1989, if there has been a change in 
        any or all of the actuarial assumptions used for calculating the 
        actuarial accrued liability of the fund, a change in the benefit 
        plan governing annuities and benefits payable from the fund, a 
        change in the actuarial cost method used in calculating the 
        actuarial accrued liability of all or a portion of the fund, or 
        a combination of the three, and the change or changes, by 
        themselves and without inclusion of any other items of increase 
        or decrease, produce a net increase in the unfunded actuarial 
        accrued liability in the fund, the established date for full 
        funding must be determined using the following procedure:  
           (i) the unfunded actuarial accrued liability of the fund 
        must be determined in accordance with the plan provisions 
        governing annuities and retirement benefits and the actuarial 
        assumptions in effect before an applicable change; 
           (ii) the level annual dollar contribution or level 
        percentage, whichever is applicable, needed to amortize the 
        unfunded actuarial accrued liability amount determined under 
        item (i) by the established date for full funding in effect 
        before the change must be calculated using the interest 
        assumption specified in subdivision 4d in effect before the 
        change; 
           (iii) the unfunded actuarial accrued liability of the fund 
        must be determined in accordance with any new plan provisions 
        governing annuities and benefits payable from the fund and any 
        new actuarial assumptions and the remaining plan provisions 
        governing annuities and benefits payable from the fund and 
        actuarial assumptions in effect before the change; 
           (iv) the level annual dollar contribution or level 
        percentage, whichever is applicable, needed to amortize the 
        difference between the unfunded actuarial accrued liability 
        amount calculated under item (i) and the unfunded actuarial 
        accrued liability amount calculated under item (iii) over a 
        period of 30 years from the end of the plan year in which the 
        applicable change is effective must be calculated using the 
        applicable interest assumption specified in subdivision 4d in 
        effect after any applicable change; 
           (v) the level annual dollar or level percentage 
        amortization contribution under item (iv) must be added to the 
        level annual dollar amortization contribution or level 
        percentage calculated under item (ii); 
           (vi) the period in which the unfunded actuarial accrued 
        liability amount determined in item (iii) is amortized by the 
        total level annual dollar or level percentage amortization 
        contribution computed under item (v) must be calculated using 
        the interest assumption specified in subdivision 4d in effect 
        after any applicable change, rounded to the nearest integral 
        number of years, but not to exceed 30 years from the end of the 
        plan year in which the determination of the established date for 
        full funding using the procedure set forth in this clause is 
        made and not to be less than the period of years beginning in 
        the plan year in which the determination of the established date 
        for full funding using the procedure set forth in this clause is 
        made and ending by the date for full funding in effect before 
        the change; and 
           (vii) the period determined under item (vi) must be added 
        to the date as of which the actuarial valuation was prepared and 
        the date obtained is the new established date for full funding.  
           (d) For the Minneapolis employees retirement fund, the 
        established date for full funding is June 30, 2020. 
           (e) For the public employees retirement association general 
        plan, the established date for full funding is June 30, 2031. 
           (f) For the retirement plans for which the annual actuarial 
        valuation indicates an excess of valuation assets over the 
        actuarial accrued liability, the valuation assets in excess of 
        the actuarial accrued liability must be recognized as a 
        reduction in the current contribution requirements by an amount 
        equal to the amortization of the excess expressed as a level 
        percentage of pay over a 30-year period beginning anew with each 
        annual actuarial valuation of the plan. 
           Sec. 19.  [IMPLEMENTATION PLAN; MAJOR STATEWIDE RETIREMENT 
        SYSTEM ADMINISTRATIVE SERVICES CONSOLIDATION.] 
           (a) Based on the July 15, 2001, report required under Laws 
        1999, chapter 222, article 22, section 5, the executive 
        directors of the Minnesota state retirement system, the public 
        employees retirement association, and the teachers retirement 
        association jointly shall prepare a report detailing the 
        implementation steps that would be necessary to consolidate the 
        administrations of the three systems into a single 
        administrative structure if the legislature subsequently 
        determines that such a consolidation would be in the best 
        interests of the state, its taxpayers, and its public employees. 
           (b) The report must include the draft proposed legislation 
        that would be required to effect an administrative consolidation 
        as well as a detailed schedule and timetable of the completion 
        steps for a consolidation. 
           (c) The report must be filed by February 15, 2003, with the 
        chair of the legislative commission on pensions and retirement, 
        the chair of the senate committee on state and local government 
        operations, and the chair of the house committee on government 
        operations and veterans affairs policy. 
           Sec. 20.  [IMPLEMENTATION PLAN; AGGREGATION OF TEACHER 
        RETIREMENT PLANS.] 
           (a) The executive director of the teachers retirement 
        association, the secretary of the Duluth teachers retirement 
        fund association, the executive director of the Minneapolis 
        teachers retirement fund association, and the secretary of the 
        St. Paul teachers retirement fund association jointly shall 
        prepare a report detailing the steps that would be necessary to 
        create a restructured teacher retirement plan if the legislature 
        subsequently determines that this restructuring would be in the 
        best interests of the state, its taxpayers, and the public 
        education community.  
           (b) In preparing the report, the pension plan 
        administrators must establish and consult with a task force.  
        The task force must consist of representatives of the affected 
        employing units and representatives of the collective bargaining 
        organizations representing members of the affected pension plans.
           (c) The report must include the draft proposed legislation 
        that would be required to create a restructured teacher 
        retirement plan as well as a detailed schedule and timetable of 
        the completion steps for the creation of a restructured teacher 
        retirement plan. 
           (d) The report must be filed by February 15, 2002, with the 
        chair of the legislative commission on pensions and retirement, 
        the chair of the senate committee on state and local government 
        operations, and the chair of the house committee on government 
        operations and veterans affairs policy. 
           Sec. 21.  [PERA-GENERAL FINANCING STUDY.] 
           The report prepared by the consulting actuary retained by 
        the legislative commission on pensions and retirement under 
        Minnesota Statutes, section 3.85, subdivision 11, paragraph (d), 
        following the completion of the July 1, 2001, actuarial 
        valuations must include a specific finding on the adequacy of 
        the financial support rates of the general employees retirement 
        plan of the public employees retirement association and a 
        specific recommendation on any needed increase in those 
        financial support rates. 
           Sec. 22.  [EFFECTIVE DATE.] 
           (a) Section 4, as it relates to the exclusion of school 
        district employees, is effective June 30, 2001. 
           (b) Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, and 17 are 
        effective July 1, 2002. 
           (c) Section 18 is effective for actuarial valuations 
        prepared after June 1, 2001. 
           (d) Sections 12, 13, 14, 15, and 16 are effective July 1, 
        2001.  
           (e) Sections 19, 20, and 21 are effective the day following 
        final enactment. 

                                   ARTICLE 12 
                          MINNESOTA STATE COLLEGES AND
                   UNIVERSITIES SYSTEM RETIREMENT PROVISIONS
           Section 1.  Minnesota Statutes 2000, section 354.41, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MEMBERSHIP ELIGIBILITY FOR LABOR ORGANIZATION 
        EMPLOYEES.] (a) A person who is a member on an authorized leave 
        of absence and is employed as an employee or officer by the 
        Minnesota federation of teachers or its affiliated branches 
        within the state, the Minnesota education association, the 
        Minnesota association of school principals, the Minnesota 
        association of secondary school principals or the Minnesota a 
        labor organization that is the exclusive bargaining agent or the 
        labor organization's state affiliate representing teachers 
        covered by this chapter or by an association of school 
        administrators may elect to be a coordinated member of the 
        association based on that employment, subject to the limitations 
        set forth in subdivisions 4a and 4b.  However, no person is 
        entitled to membership under this section if the person also is 
        a member of a teachers retirement association in a city of the 
        first class organized under chapter 354A for the same period of 
        service.  
           (b) The election must be made within 90 days of commencing 
        employment by the labor organization. 
           Sec. 2.  [354B.32] [TRANSFER OF FUNDS TO IRAP.] 
           A participant in the individual retirement account plan 
        established in this chapter who has less than ten years of 
        allowable service under the teachers retirement association or 
        the teachers retirement fund association may elect to transfer 
        an amount equal to the participant's accumulated member 
        contributions to the teachers retirement association or the 
        teachers retirement fund association, plus compound interest at 
        the rate of six percent per annum, to the individual retirement 
        account plan.  The transfers are irrevocable fund to fund 
        transfers, and in no event may the participant receive direct 
        payment of the money transferred prior to retirement.  If a 
        participant elects the contribution transfer, all of the 
        participant's allowable and formula service credit in the 
        teachers retirement association or the teachers retirement fund 
        association associated with the transferred amount is forfeited. 
           The executive director of the teachers retirement 
        association and the chief administrative officers of the 
        teachers retirement fund associations, in cooperation with the 
        chancellor of the Minnesota state colleges and universities 
        system, shall notify participants who are eligible to transfer 
        of their right to transfer and the amount that they are eligible 
        to transfer, and shall, upon request, provide forms to implement 
        the transfer.  The chancellor of the Minnesota state colleges 
        and universities system shall assist the teachers retirement 
        association and the teachers retirement fund associations in 
        developing transfer forms and in implementing the transfers.  
           Authority to elect a transfer under this section expires on 
        July 1, 2004. 
           Sec. 3.  [REPEALER.] 
           Minnesota Statutes 2000, section 354.41, subdivision 9, is 
        repealed. 
           Sec. 4.  [EFFECTIVE DATE.] 
           (a) Sections 1 to 3 are effective the day following final 
        enactment. 
           (b) Coverage under section 1 applies to employment as an 
        officer of the interfaculty organization on or after July 1, 
        1996. 

                                   ARTICLE 13 
                 CLOSED CHARTER SCHOOL RETIREMENT CONTRIBUTIONS
           Section 1.  [STUDY BY THE LEGISLATIVE COMMISSION ON 
        PENSIONS AND RETIREMENT.] 
           (a) The legislative commission on pensions and retirement 
        shall study and recommend the appropriate mechanism for 
        recovering unpaid member and employer retirement plan 
        contributions from charter schools that cease operations. 
           (b) The report must include the draft proposed legislation 
        that would be required to implement the mechanism recommended by 
        the commission. 
           (c) The report must be filed by February 15, 2002, with the 
        chairs of the senate committees on state and local government 
        operations and education and with the chairs of the house 
        committees on governmental operations and veterans affairs 
        policy and education. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective the day following final enactment. 

                                   ARTICLE 14 
                    LOCAL POLICE AND PAID FIRE PENSION PLANS
           Section 1.  Minnesota Statutes 2000, section 423B.05, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [RIGHT TO PARTICIPATE BY MAIL-IN BALLOT.] Active 
        members, retired members, and surviving spouse members of the 
        relief association have the right to participate in the election 
        of board members of the association by mail-in ballot. 
           Sec. 2.  Minnesota Statutes 2000, section 423B.05, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [MAIL-IN REFERENDUM ON VOTING BY MAIL.] (a) The 
        board of the association is authorized to submit the following 
        question in a binding member referendum to be conducted by mail: 
                 "Shall the bylaws of the Minneapolis police relief 
                 association be amended to allow future proposed
                 amendments to the bylaws of the relief association
                 to be approved by a vote of relief association members
                 by mail?
                                            Yes ........
                                            No ........"
           (b) The board of the relief association shall conduct the 
        referendum by mailing a printed copy of the referendum question 
        and of the ballot to all active members, retired members, and 
        surviving spouse members in accordance with the voting 
        procedures that the board of the relief association used in the 
        most recent board election prior to March 1, 2001. 
           (c) Before submitting the referendum question to a vote by 
        the relief association membership, the relief association board 
        shall solicit the opinions of relief association members for the 
        question and against the question.  The solicitation for member 
        comments must be included in the next regular relief association 
        communication to relief association members following the 
        proposal of the bylaw amendment and on the Web site of the 
        relief association.  The comment period continues for 30 days.  
        The executive director of the relief association shall prepare a 
        summary of the comments of relief association members for and 
        against the question in a fair and impartial manner.  A draft of 
        the summary document must be placed on the Web site of the 
        relief association for five days.  If a relief association board 
        member challenges the objectivity of the draft summary, the 
        draft summary must be reviewed by a neutral third party.  The 
        neutral third party must be an accredited professional 
        mediator.  The relief association executive director shall 
        include the recommendations of the neutral third party in the 
        final summary document.  The written summary prepared by the 
        relief association executive director must be included with the 
        question and the ballot mailed to relief association members. 
           (d) Balloting procedures must be designed to maintain 
        secrecy as to the identity of voting members.  The receipt of 
        returned ballots and the counting of those ballots must be 
        conducted by an accounting firm designated by the relief 
        association board to perform those functions. 
           (e) For adoption, the question must receive favorable votes 
        from two-thirds of the relief association members who return 
        ballots on the question. 
           (f) If the question in paragraph (a) is approved in the 
        referendum, future bylaw amendments must be conducted in the 
        same manner as provided in this subdivision. 
           Sec. 3.  [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 
        HOC POSTRETIREMENT ADJUSTMENT.] 
           In addition to the current pensions and other retirement 
        benefits payable, the pensions and retirement benefits payable 
        to retired police officers and firefighters and their surviving 
        spouses by the Eveleth police and fire trust fund are increased 
        by $100 per month.  Increases are retroactive to January 1, 2001.
           Sec. 4.  [EFFECTIVE DATE.] 
           (a) Sections 1 and 2 are effective on the day following 
        final enactment. 
           (b) If the referendum question in section 2 is approved, no 
        proposed bylaw amendment may be submitted for membership 
        approval by mail until January 1, 2002. 
           (c) Section 3 is effective on the day after the date on 
        which the Eveleth city council and the chief clerical officer of 
        the city of Eveleth complete in a timely manner their compliance 
        with Minnesota Statutes, section 645.021, subdivisions 2 and 3. 

                                   ARTICLE 15 
                  MINNEAPOLIS FIREFIGHTERS RELIEF ASSOCIATION
                     BENEFIT PLAN CODIFICATION AND REVISION
           Section 1.  [423C.01] [MINNEAPOLIS FIREFIGHTERS RELIEF 
        ASSOCIATION; DEFINITIONS.] 
           Subdivision 1.  [TERMS.] For purposes of this chapter, 
        unless the context clearly indicates otherwise, the terms 
        defined in this section have the meanings given them. 
           Subd. 2.  [ACTIVE MEMBER.] "Active member" means a person 
        who was hired and duly appointed by the city of Minneapolis 
        before June 15, 1980, as a firefighter who is regularly entered 
        on the fire department payroll and who serves on active duty. 
           Subd. 3.  [ACTIVE MEMBER PERCENTAGE.] "Active member 
        percentage" means the total number of units accrued by active 
        members divided by the sum of the total number of units to which 
        eligible members are entitled and active members have accrued. 
           Subd. 4.  [ACTUARIAL EQUIVALENT OR ACTUARIALLY 
        EQUIVALENT.] "Actuarial equivalent" or "actuarially equivalent" 
        means the condition of one annuity or benefit having an equal 
        actuarial present value as another annuity or benefit determined 
        as of a given date at a specified age with each actuarial 
        present value based on the appropriate mortality table adopted 
        by the board based on the experience of the special fund and 
        approved by the actuary retained by the legislative commission 
        on pensions and retirement and using the applicable 
        preretirement or postretirement interest rate assumptions 
        specified in section 356.216. 
           Subd. 5.  [AGE.] "Age" means a person's age at the person's 
        latest birthday. 
           Subd. 6.  [ANNUAL POSTRETIREMENT ADJUSTMENT.] "Annual 
        postretirement adjustment" means the payment of a lump-sum, 
        postretirement benefit pursuant to section 423C.06, subdivision 
        1, to an eligible member on June 1 following the determination 
        date in any year. 
           Subd. 7.  [ASSOCIATION.] "Association" means the 
        Minneapolis firefighters relief association.  
           Subd. 8.  [BOARD.] "Board" means the board established in 
        section 423C.03 to govern the association. 
           Subd. 9.  [CITY.] "City" means the city of Minneapolis. 
           Subd. 10.  [DEFERRED MEMBER.] "Deferred member" means a 
        person who served on active duty and was regularly entered on 
        the fire department payroll and separated from active service 
        prior to attaining 50 years of age and is entitled to receive a 
        service pension upon reaching age 50 under the law existing at 
        the time the member separated from active service for at least 
        five years. 
           Subd. 11.  [DEPENDENT.] "Dependent" means: 
           (1) a biological or adopted child of a deceased, active, or 
        retired member who is unmarried and under the age of 18; 
           (2) a biological or adopted child of a deceased, active, or 
        retired member who is between the ages of 18 and 22 and is 
        enrolled full time at an accredited educational institution 
        approved by the board; or 
           (3) a biological child of an active or retired member 
        conceived during the active or retired member's lifetime and 
        born after the active or retired member's death. 
           Subd. 12.  [DETERMINATION DATE.] "Determination date" means 
        December 31 of each year. 
           Subd. 13.  [DISABILITY.] "Disability" has the meaning 
        specified in the bylaws of the relief association on April 1, 
        2001. 
           Subd. 14.  [DISCHARGE.] "Discharge" means a complete 
        separation from and termination of active service as a member of 
        the fire department. 
           Subd. 15.  [ELIGIBLE MEMBER.] "Eligible member" means: 
           (1) for purposes of section 423C.06, subdivision 1, a 
        person, including a service pensioner, a disability pensioner, a 
        survivor, or dependent of a deceased active member, service 
        pensioner, or disability pensioner, who received a pension or 
        benefit from the relief association during the 12 months before 
        the determination date.  A person who received a pension or 
        benefit for the entire 12 months before the determination date 
        is eligible for a full annual postretirement payment.  A person 
        who received a pension or benefit for less than 12 months before 
        the determination date is eligible for a prorated annual 
        postretirement payment; and 
           (2) for purposes of section 423C.06, subdivision 4, a 
        person who receives a service, survivor, or disability pension 
        payable from the special fund of the association. 
           Subd. 16.  [ENROLLED FULL TIME.] "Enrolled full time" means 
        the situation of an individual who is in full-time attendance as 
        a student at an educational institution, as determined by the 
        board of trustees of the relief association in light of the 
        standards and practices of the school involved.  A person who is 
        paid by the person's employer while attending school at the 
        request of that employer may not be considered to be a full-time 
        student.  A person may be considered a full-time student during 
        a period of up to four months of nonattendance during any 
        12-month period if the person shows to the satisfaction of the 
        board of trustees that the person intends to continue in 
        full-time school attendance immediately upon the conclusion of 
        the nonattendance period. 
           Subd. 17.  [EXCESS INVESTMENT INCOME.] "Excess investment 
        income" means the amount, if any, by which the time-weighted 
        total rate of return earned by the special fund in the prior 
        five fiscal years has exceeded the actual percentage increase in 
        the current monthly salary of a first grade firefighter in the 
        most recent fiscal year plus two percent.  The excess investment 
        income must be expressed as a dollar amount and may not exceed 
        one percent of the total assets of the special fund except when 
        the actuarial value of assets of the special fund, according to 
        the most recent annual actuarial valuation prepared in 
        accordance with sections 356.215 and 356.216, is greater than 
        102 percent of its actuarial accrued liabilities, in which case 
        the amount must not exceed 1.5 percent of the assets of the 
        special fund.  
           Subd. 18.  [FIRE DEPARTMENT.] "Fire department" means the 
        Minneapolis fire department. 
           Subd. 19.  [FUND.] "Fund" means the special fund of the 
        relief association. 
           Subd. 20.  [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess 
        asset amount payment" means the payment of an additional 
        postretirement payment under section 423C.06, subdivision 4, to 
        an eligible member on June 1 following the determination date in 
        the given year. 
           Subd. 21.  [NET TOTAL EXCESS ASSET AMOUNT.] "Net total 
        excess asset amount" means the total excess asset amount stated 
        in dollars and multiplied by one minus the active member 
        percentage. 
           Subd. 22.  [PERIOD OF SERVICE.] "Period of service" means: 
           (1) any service rendered by a firefighter for any calendar 
        month when the member receives salary from which deductions are 
        made, deposited, and credited to the special fund.  Leaves of 
        absence of more than 90 days, except those granted because of 
        disability due to sickness or accident or to enable a member to 
        accept an appointive position in the fire department, shall be 
        excluded in computing a member's period of service; 
           (2) any period in which the member, after entering the fire 
        department, leaves to enter the military forces of the United 
        States in a time of war or national emergency and subsequently 
        receives an honorable discharge from the military or leaves to 
        render fire prevention services to the United States government 
        in a time of war or national emergency, provided the member who 
        serves either applies for reinstatement in or resumes active 
        duty in the fire department within six months.  During any 
        period of military or fire prevention service, the individual 
        shall not be considered an active member.  Any period of service 
        a member qualifies for under this clause is limited as follows: 
           (i) credit shall be granted for service rendered subsequent 
        to July 1, 1961, but the credit shall not exceed six calendar 
        years; 
           (ii) no credit shall be granted for service rendered 
        subsequent to July 1, 1961, if the period of service rendered 
        prior to July 1, 1961, equals or exceeds six calendar years; and 
           (iii) if the period of service prior to July 1, 1961, is 
        less than six calendar years, credit for service subsequent to 
        July 1, 1961, shall be added to the prior service, but in no 
        case shall total service credit exceed six calendar years. 
           Subd. 23.  [RETIRED MEMBER.] "Retired member" means a 
        former active member who has terminated active service with the 
        fire department and is entitled to receive a pension or benefit 
        under this chapter or any predecessor law. 
           Subd. 24.  [RELIEF ASSOCIATION.] "Relief association" means 
        the Minneapolis firefighters relief association. 
           Subd. 25.  [SURVIVING SPOUSE MEMBER.] "Surviving spouse 
        member" means a person who was: 
           (1) legally married to, and residing with, an active, 
        deferred, or retired member both during the time the member was 
        regularly entered on the payroll and serving on active duty in 
        the fire department and at the time of the member's death; 
           (2) not in a common law marriage; and 
           (3) in the event the person was married to a retired or 
        deferred member, married to that retired or deferred member for 
        at least two years prior to the member's discharge from the fire 
        department. 
           Subd. 26.  [TIME-WEIGHTED TOTAL RATE OF 
        RETURN.] "Time-weighted total rate of return" means the 
        percentage amount determined by using the formula or formulas 
        established by the state board of investment under section 
        11A.04, clause (11), and in effect on January 1, 1987. 
           Subd. 27.  [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess 
        asset amount" means the difference, if positive, expressed in 
        dollars, between the special fund's market value of assets after 
        any deductions required by section 423C.06, subdivision 3, and 
        110 percent of the actuarial accrued liabilities based on the 
        actuarial valuation indicated in paragraph (b). 
           (b) The total excess asset amount in paragraph (a) exists 
        if the actuarial liability funding ratio, according to the most 
        recent annual actuarial valuation of the special fund prepared 
        in accordance with sections 69.77, 356.215, and 356.216, with 
        adjustments required by section 423C.06, subdivision 3, equals 
        or exceeds 110 percent. 
           Subd. 28.  [UNIT.] "Unit" means 1/80 of the maximum monthly 
        salary of a first grade firefighter on the first day of the 
        month in which the pension benefits provided by this chapter are 
        paid. 
           Sec. 2.  [423C.02] [MINNEAPOLIS FIREFIGHTERS RELIEF 
        ASSOCIATION.] 
           Subdivision 1.  [CREATION.] The active and retired members 
        of the fire department and their surviving spouses shall 
        maintain the association.  The association shall be duly 
        incorporated under chapter 317A.  The corporation shall have 
        perpetual corporate existence.  The association shall create, 
        maintain, and administer those funds and accounts as set forth 
        in section 423C.04 for the benefit of its members, surviving 
        spouses, and dependents.  The sources of revenue for each fund 
        and account are governed by section 423C.04.  The authorized 
        disbursements from each fund and account are governed by 
        sections 423C.04, 423C.05, and 423C.06. 
           Subd. 2.  [MEMBERSHIP.] Active members, deferred members, 
        retired members, and surviving spouse members as defined in 
        section 423C.01 are members of the association. 
           Subd. 3.  [MANAGEMENT OF ASSOCIATION.] The board created in 
        section 423C.03 shall manage, control, and operate the 
        association, including the funds and accounts set forth in 
        section 423C.04, according to this chapter, other applicable 
        law, and the association's articles of incorporation and its 
        bylaws.  Notwithstanding section 423A.01, subdivision 2, or any 
        other law to the contrary, the board shall continue to govern 
        the association until there are fewer than 100 members receiving 
        benefits under this chapter.  Thereafter, the special fund shall 
        become a trust fund according to section 423A.01, subdivision 2. 
           Subd. 4.  [DISPOSITION OF ASSETS UPON CONCLUSION OF BENEFIT 
        PAYMENTS.] Upon the death of the last benefit recipient and the 
        certification by the chief administrative officer of the city to 
        the state auditor of the absence of any remaining person 
        entitled to a benefit under this chapter, all assets of the 
        association or trust fund, whichever applies, shall revert to 
        the city.  The city shall only use these assets for firefighting 
        expenditure purposes. 
           Sec. 3.  [423C.03] [BOARD MEMBERSHIP; ELECTIONS; DUTIES; 
        COMPENSATION; BOND; MEETINGS; POWERS.] 
           Subdivision 1.  [BOARD COMPOSITION AND ELECTIONS.] The 
        board shall consist of two persons appointed by the city and ten 
        other members selected by the members.  Elections for active and 
        retired positions on the board shall be conducted pursuant to 
        the association's bylaws.  
           Subd. 2.  [BOARD OFFICERS.] The officers of the association 
        shall consist of a president, one or more vice-presidents, an 
        executive secretary, a treasurer, an assistant executive 
        secretary, and an assistant treasurer.  Only elected members of 
        the board are eligible to be officers.  Officers shall have 
        those duties and responsibilities as set forth in this chapter, 
        other applicable law, and the association's bylaws.  Officers 
        shall be compensated as provided in subdivision 3.  All officers 
        shall be elected in even years at the association's annual 
        meeting.  Officers shall hold their office for a term of two 
        years unless they are removed from the board before their 
        two-year term expires. 
           Subd. 3.  [COMPENSATION OF OFFICERS AND BOARD 
        MEMBERS.] Notwithstanding any other law to the contrary, the 
        association may provide for payment of the following salaries to 
        its officers and board members: 
           (1) the executive secretary may receive a salary not 
        exceeding 30 percent of the maximum salary of a first grade 
        firefighter; 
           (2) the president may receive a salary not exceeding ten 
        percent of the maximum salary of a first grade firefighter; and 
           (3) all other elected members of the board may receive a 
        salary not exceeding 2.5 percent of the maximum salary of a 
        first grade firefighter. 
           Subd. 4.  [BOND FOR EXECUTIVE SECRETARY AND TREASURER.] (a) 
        The executive secretary and the treasurer must furnish to the 
        relief association a corporate bond for the faithful performance 
        of the duties of that office in an amount as the board of 
        trustees from time to time may determine, subject to the minimum 
        amount specified in section 69.051, subdivision 2. 
           (b) The relief association must pay the premiums on these 
        bonds from the general fund of the relief association. 
           Subd. 5.  [MEETINGS.] Each December, the board shall hold 
        an annual meeting.  All other meetings of the board shall be 
        held as provided in the association's articles or bylaws.  Board 
        members may participate in a board meeting by any means of 
        communication through which the trustee, other board members 
        participating, and all other board members physically present at 
        the meeting may simultaneously hear each other during the 
        meeting.  Participating in a meeting by these means is the same 
        thing as being physically present at the meeting.  
           Subd. 6.  [ADDITIONAL BOARD POWERS.] In addition to the 
        powers granted the board by this chapter, chapter 317A, other 
        applicable state and federal law, and its articles and bylaws, 
        the board shall authorize and create a board of examiners.  
           The board of examiners shall investigate and report on all 
        applications for disability pensions and make recommendations as 
        to the amount to be paid to each applicant; investigate and 
        report on all disability pensioners and make recommendations as 
        to the amount of pension to be paid to them, from year to year; 
        and investigate and report on all applications for service 
        pensions and claims for relief.  This board shall consist of a 
        competent physician selected by the association and at least 
        three members of the relief association on active duty with the 
        fire department. 
           Sec. 4.  [423C.04] [ASSOCIATION FUNDS AND ACCOUNTS.] 
           Subdivision 1.  [DUTIES.] The association shall create, 
        maintain, and administer the funds and accounts in this 
        section.  The sources of revenue and authorized disbursements of 
        each fund and account are governed by this section. 
           Subd. 2.  [SPECIAL FUND; PURPOSE AND SOURCES OF 
        REVENUE.] (a) The special fund may only be used to pay for 
        defined and contingent benefits as set forth in sections 423C.05 
        and 423C.06; compensation for officers and board members as set 
        forth in section 423C.03, subdivision 3; expenses of officers 
        and employees of the association in connection with the 
        protection of the special fund; and expenses of operating, 
        administering, and maintaining the association as authorized by 
        this chapter, section 69.80, or other applicable law.  
           (b) The special fund is derived from the following sources: 
           (1) receipts from the state, including, but not limited to, 
        any fire state aid, any fire insurance premium surcharge amount, 
        or any additional amortization state aid; 
           (2) all money derived from taxation by the city under 
        section 69.77 for the support of the association and for the 
        payment of benefits set forth in sections 423C.05 and 423C.06; 
           (3) an amount equal to the minimum percentage specified in 
        section 69.77, subdivision 2a, of the salary of a first grade 
        firefighter deducted from the monthly salary of each active 
        member; and 
           (4) the proceeds of the investment of special fund assets. 
           Subd. 3.  [GENERAL FUND.] The general fund is separate and 
        distinct from the special fund.  The general fund may, 
        consistent with applicable law, be expended for those purposes 
        deemed appropriate by the relief association.  The city finance 
        officer shall deduct from each active member's biweekly payroll 
        check a sum equal to one-half of one percent of the maximum 
        biweekly salary of a first grade firefighter.  This sum shall be 
        forwarded to the association's treasurer and deposited in the 
        general fund.  The general fund shall also consist of receipts 
        from private sources, such as gifts, charges, fundraising 
        projects, and dues paid by members; investment of, earnings on, 
        and interest of the general fund; and all other sources.  Money 
        received from other sources may also be deposited in the general 
        fund. 
           Subd. 4.  [HEALTH INSURANCE ACCOUNTS.] Notwithstanding any 
        law to the contrary, contributions of active members of the 
        association with at least 25 years of service made after the 
        25th year of service must be deposited in a separate account and 
        used to pay health care costs of the individual member upon 
        retirement.  The board shall adopt rules regarding the frequency 
        and amounts of distributions from these accounts.  A member with 
        an account established pursuant to this section is entitled, 
        upon retirement or disability, to receive periodic distributions 
        from the account, in the amount and with the frequency specified 
        by the retiring member consistent with the board's rules. 
           Sec. 5.  [423C.05] [DEFINED BENEFITS.] 
           Subdivision 1.  [DUTIES.] The association is authorized to 
        and shall pay the benefits in this section to its members in 
        accordance with this section.  All benefits authorized in this 
        section shall be paid from the association's special fund. 
           Subd. 2.  [SERVICE PENSION.] (a) An active member who has 
        performed duty for the fire department for five years or more, 
        upon written application after retiring from duty and reaching 
        at least age 50, is entitled to be paid monthly for life a 
        service pension under paragraph (b). 
           (b) Based on the percentage that the actuarial value of 
        assets of the special fund equal to the actuarial accrued 
        liabilities of the special fund according to the most recent 
        annual actuarial valuation of the relief association prepared in 
        accordance with sections 356.215 and 356.216, the amount of the 
        service pension is as follows: 
        Length of    Service        Service          Service
        allowable    pension        pension          pension
        service      payable if     payable          payable if  
        credit       under 90       if greater       greater
                     percent        than 89.99       than 92.49  
                                    percent and      percent  
                                    less than                    
                                    92.5 percent              
         5 years         -            8.0 units       8.0 units 
         6 years         -            9.6 units       9.6 units 
         7 years         -           11.2 units      11.2 units 
         8 years         -           12.8 units      12.8 units 
         9 years         -           14.4 units      14.4 units 
        10 years    16.0 units       16.0 units      16.0 units
        11 years    17.6 units       17.6 units      17.6 units 
        12 years    19.2 units       19.2 units      19.2 units  
        13 years    20.8 units       20.8 units      20.8 units  
        14 years    22.4 units       22.4 units      22.4 units  
        15 years    24.0 units       24.0 units      24.0 units 
        16 years    25.6 units       25.6 units      25.6 units 
        17 years    27.2 units       27.2 units      27.2 units 
        18 years    28.8 units       28.8 units      28.8 units 
        19 years    30.4 units       30.4 units      30.4 units 
        20 years    33.0 units       33.5 units      34.0 units 
        21 years    34.6 units       35.1 units      35.6 units 
        22 years    36.2 units       37.7 units      37.2 units 
        23 years    37.8 units       38.3 units      38.8 units 
        24 years    39.4 units       39.9 units      40.4 units 
        25 years 
         or more    41.0 units       41.5 units      42.0 units
           (c) A member entitled to a benefit under this subdivision 
        may elect to have it paid as an optional retirement annuity 
        pursuant to the conditions set forth in subdivision 8.  A member 
        receiving a benefit pursuant to subdivision 5 or 6 shall not 
        simultaneously be entitled to a benefit under this subdivision. 
           Subd. 3.  [CALCULATION OF SERVICE PENSION FOR DEFERRED 
        MEMBERS.] An association member who has performed services for 
        the fire department for five years or more but has not reached 
        the age of 50 years shall be eligible to retire from the 
        department, without forfeiting service pension rights.  The 
        member shall, upon application, be placed on the association's 
        deferred pension roll.  The association shall, upon board 
        approval, pay the pension of any member on the deferred pension 
        roll who has attained 50 years of age from the date the 
        application is approved.  The pension shall be paid in 
        accordance with the schedule in subdivision 2.  Any person 
        making this application waives all other rights, claims, or 
        demands against the association for any cause that may have 
        arisen from or that may be attributable to the person's service 
        in the fire department.  A member entitled to a benefit under 
        this subdivision may elect to have the benefit paid as an 
        optional retirement annuity pursuant to the conditions set forth 
        in subdivision 7.  
           Subd. 4.  [TEMPORARY DISABILITY PENSION.] An active member 
        who, by sickness or accident, becomes temporarily disabled from 
        performing firefighter duties for the fire department shall be 
        entitled to a temporary disability pension.  No allowance for 
        disability shall be made unless notice of the disability and an 
        application for benefits is made by or on behalf of the disabled 
        member within 90 days after the beginning of the disability.  
        This application shall include a certificate from a qualified 
        medical professional setting forth the cause, nature, and extent 
        of the disability.  This certificate must also conclude that the 
        disability was incurred or sustained while the member was in the 
        service of the fire department.  The board shall utilize the 
        board of examiners established pursuant to section 423C.03, 
        subdivision 6, to investigate and report on an application for 
        benefits pursuant to this section and make recommendations as to 
        eligibility and the benefit amount to be paid.  A member 
        entitled to a disability pension shall receive benefits in the 
        amount and manner determined by the board. 
           Subd. 5.  [SERVICE-RELATED PERMANENT DISABILITY 
        PENSION.] An active member who becomes permanently disabled as 
        the result of a service-related disease or injury shall, upon 
        application and approval of the board, be entitled to a pension 
        of 42 units or in the amount determined under subdivision 8.  
        The application for service-related permanent disability shall 
        include a certificate from a qualified medical professional 
        setting forth the permanent nature of the disability or disease 
        and that it was service related.  The board shall utilize the 
        board of examiners established pursuant to section 423C.03, 
        subdivision 6, to investigate and make recommendations on an 
        application for a pension pursuant to this subdivision. 
           Subd. 6.  [NON-SERVICE-RELATED PERMANENT DISABILITY 
        PENSION.] An active member who, by sickness or accident, becomes 
        permanently disabled from performing firefighter duties for the 
        fire department shall be entitled to a permanent disability 
        pension.  No allowance for disability shall be made unless 
        notice of the disability and an application for benefits is made 
        by or on behalf of the disabled member within 90 days after the 
        beginning of the disability.  This application shall include a 
        certificate from a qualified medical professional setting forth 
        the cause, nature, and extent of the disability.  The board 
        shall utilize the board of examiners established pursuant to 
        section 423C.03, subdivision 6, to investigate and report on an 
        application for benefits pursuant to this section and make 
        recommendations as to eligibility and the benefit amount to be 
        paid.  A member entitled to a disability pension shall receive 
        benefits in the amount and manner determined by the board, not 
        to exceed 41 units. 
           Subd. 7.  [SURVIVING SPOUSE AND DEPENDENT 
        PENSIONS.] Notwithstanding any other law to the contrary, when a 
        service pensioner, disability pensioner, deferred pensioner, or 
        active member of the association dies, recipient beneficiaries 
        are entitled to a pension or pensions, as follows: 
           (1) to a surviving spouse, a pension of 22 units per month; 
           (2) a surviving spouse of a deceased service pensioner, 
        disability pensioner, or deferred pensioner who is otherwise not 
        qualified for a pension may receive a benefit if the surviving 
        spouse was legally married to the decedent for a period of two 
        years and was residing with the decedent at the time of death.  
        The surviving spouse benefit provided in this clause is the same 
        as that provided to those who meet the definition of surviving 
        spouse under section 423C.01, subdivision 25, except that if the 
        surviving spouse is younger than the decedent, the surviving 
        spouse benefit must be actuarially equivalent to a surviving 
        spouse benefit that would have been paid to the member's spouse 
        had the member been married to a person of the same or greater 
        age than the member's age prior to retirement.  A benefit paid 
        in this circumstance may be less than 17 units notwithstanding 
        the minimum set out in this clause; 
           (3) to each dependent, if the dependent's other parent is 
        living, a pension not to exceed eight units per month.  
        Dependents between the ages of 18 and 22 may continue to receive 
        a pension upon board determination that the dependent complies 
        with the requirements of section 423C.01, subdivision 11, and 
        applicable association bylaws, except that if the dependent 
        marries before the age of 22 years the pension shall cease as of 
        the date of the marriage.  The board shall make the final 
        determination with respect to eligibility for benefits and 
        compliance with section 423C.01, subdivision 11; 
           (4) each dependent of a deceased member after the death of 
        the dependent's other parent, or in the event the other parent 
        predeceases the member, is entitled to receive a pension in the 
        amount the board deems necessary to properly support each 
        dependent until the dependent reaches the age of not less than 
        16 and not more than 18 years.  Dependents between the ages of 
        18 and 22 may be entitled to continue receiving a pension upon 
        board determination that the dependent complies with the 
        requirements of section 423C.01, subdivision 11, and applicable 
        association bylaws, except that if the dependent marries before 
        the age of 22 years the pension shall cease as of the date of 
        the marriage.  The board shall make the final determination with 
        respect to eligibility for benefits and compliance; and 
           (5) the total pension payable to a surviving spouse and all 
        dependents of a deceased member shall in no event exceed 41 
        units per month. 
           Subd. 8.  [OPTIONAL RETIREMENT ANNUITY ELECTION.] A member 
        of the association who retires under subdivision 2 or becomes 
        disabled under subdivision 6 may elect an optional retirement 
        annuity prior to the receipt of any benefits.  The optional 
        retirement annuity may be a 50 percent, 75 percent, or 100 
        percent joint survivor annuity without reinstatement in the 
        event the designated beneficiary predeceases the member or a 
        joint and survivor annuity with reinstatement in the event the 
        member predeceases the designated beneficiary.  An optional 
        retirement annuity must be actuarially equivalent to the service 
        pension and automatic survivor coverage otherwise payable to the 
        retired member and the member's beneficiaries.  Once selected, 
        the optional annuity is irrevocable. 
           Subd. 9.  [ALTERNATIVE SERVICE PENSION FOR UNMARRIED 
        MEMBER.] A retired member who is not legally married on 
        September 1, 1997, and remains unmarried on the effective date 
        of this article may select a service pension of 42.3 units in 
        lieu of a service pension under subdivision 2.  
           Sec. 6.  [423C.06] [INVESTMENT-RELATED POSTRETIREMENT 
        ADJUSTMENTS.] 
           Subdivision 1.  [ANNUAL ADJUSTMENTS.] Notwithstanding the 
        provisions of chapter 69, or any other law to the contrary, the 
        association may provide annual postretirement payments to 
        eligible members under this section.  No provision of or payment 
        made under this section may be interpreted or relied upon by any 
        member of the association to guarantee or entitle a member to 
        annual postretirement adjustments for any period when the 
        requirements in this section have not been met. 
           Subd. 2.  [ACTUARIAL ASSETS OF SPECIAL FUND LESS THAN 102 
        PERCENT.] (a) When the actuarial assets of the special fund in 
        any year are less than 102 percent of its accrued liabilities 
        according to the most recent annual actuarial valuation of the 
        special fund prepared in accordance with sections 356.215 and 
        356.216, investment-related postretirement adjustments shall be 
        determined and paid pursuant to this subdivision.  Payment of 
        the annual postretirement adjustment may be made only if there 
        is excess investment income. 
           (b) The board shall determine by May 1 of each year whether 
        or not the special fund has excess investment income.  The 
        amount of excess investment income, if any, must be stated as a 
        dollar amount and reported by the executive secretary to the 
        mayor and governing body of the city, the state auditor, the 
        commissioner of finance, and the executive director of the 
        legislative commission on pensions and retirement.  The dollar 
        amount of excess investment income up to one percent of the 
        assets of the special fund must be applied for the purpose 
        specified in paragraph (c).  Excess investment income must not 
        be considered as income to or assets of the special fund for 
        actuarial valuations of the special fund for that year under 
        this section and sections 69.77, 356.215, and 356.216, except to 
        offset the annual postretirement adjustment.  Additional 
        investment income is any realized or unrealized investment 
        income other than the excess investment income and must be 
        included in the actuarial valuations performed under this 
        section and sections 69.77, 356.215, and 356.216. 
           (c) The amount determined under paragraph (b) must be 
        applied as follows:  the association shall apply the first 
        one-half of one percent of assets that constitute excess 
        investment income to the payment of an annual postretirement 
        adjustment to eligible members and the second one-half of one 
        percent of assets which constitute excess investment income 
        shall be applied to reduce the state amortization state aid or 
        supplementary amortization state aid payments otherwise due the 
        association under section 423A.02 for the current calendar 
        year.  The amounts of all payments to eligible members shall not 
        exceed one-half of one percent of the assets of the fund.  The 
        amount of each eligible member's postretirement adjustment shall 
        be calculated by dividing the total number of units to which 
        eligible members are entitled into the excess investment income 
        available for distribution to eligible members, and then 
        multiplying that result by the number of units to which each 
        eligible member is entitled.  If this amount exceeds the total 
        monthly benefit that the eligible member was entitled to in the 
        prior year under the terms of this chapter, the association 
        shall pay the eligible member the lesser amount.  Payment of the 
        annual postretirement adjustment must be in a lump-sum amount on 
        June 1 following the determination date in any year.  In the 
        event an eligible member dies prior to the payment of the annual 
        postretirement adjustment, the executive secretary shall pay the 
        eligible member's estate the amount to which the member was 
        entitled. 
           Subd. 3.  [ACTUARIAL ASSETS OF SPECIAL FUND 102 PERCENT OR 
        MORE.] (a) When the actuarial assets of the special fund in any 
        year are 102 percent or more of its accrued liabilities 
        according to the most recent annual actuarial valuation of the 
        special fund prepared in accordance with sections 356.215 and 
        356.216, an investment-related postretirement adjustment shall 
        be determined and paid pursuant to this subdivision.  Payment of 
        the annual postretirement adjustment may only be made if there 
        is excess investment income. 
           (b) The board shall determine by May 1 of each year whether 
        or not the special fund has excess investment income.  The 
        amount of excess investment income, if any, must be stated as a 
        dollar amount and reported by the executive secretary to the 
        mayor and governing body of the city, the state auditor, the 
        commissioner of finance, and the executive director of the 
        legislative commission on pensions and retirement.  The dollar 
        amount of excess investment income up to 1-1/2 percent of the 
        assets of the fund must be applied for the purpose specified in 
        paragraph (c).  Excess investment income must not be considered 
        as income to or assets of the special fund for actuarial 
        valuations of the special fund for that year under this section 
        and sections 69.77, 356.215, and 356.216, except to offset the 
        annual postretirement adjustment.  Additional investment income 
        is any realized or unrealized investment income other than the 
        excess investment income and must be included in the actuarial 
        valuations performed under this section and sections 69.77, 
        356.215, and 356.216. 
           (c) The amount determined under paragraph (b) must be 
        applied as follows:  the association shall apply the 1-1/2 
        percent of assets that constitute excess investment income to 
        the payment of an annual postretirement adjustment to eligible 
        members.  The amount of each eligible member's postretirement 
        adjustment shall be calculated by dividing the total number of 
        units to which eligible members are entitled into the excess 
        investment income available for distribution to eligible 
        members, and then multiplying that result by the number of units 
        to which each eligible member is entitled.  Payment of the 
        annual postretirement adjustment must be in a lump-sum amount on 
        June 1 following the determination date in any year.  In the 
        event an eligible member dies prior to the payment of the annual 
        postretirement adjustment, the executive secretary shall pay the 
        eligible member's estate the amount to which the member was 
        entitled. 
           Subd. 4.  [ACTUARIAL ASSETS OF SPECIAL FUND 110 PERCENT OR 
        MORE.] (a) When the actuarial assets of the special fund in any 
        year are 110 percent or more of its accrued liabilities 
        according to the most recent annual actuarial valuation of the 
        special fund prepared in accordance with sections 356.215 and 
        356.216, an investment-related postretirement adjustment shall 
        be determined and paid pursuant to this subdivision.  Payment of 
        the annual postretirement adjustment may be made only if a total 
        excess asset amount exists. 
           (b) The board shall determine by May 1 of each year whether 
        the special fund has a total excess asset amount for that year.  
        If a total excess asset amount exists for the given year, the 
        net total asset amount shall be determined.  The executive 
        secretary shall report the total excess asset amount and net 
        total excess asset amount to the mayor and governing body of the 
        city, the state auditor, the commissioner of finance, and the 
        executive director of the legislative commission on pensions and 
        retirement.  The portion of the net excess asset amount which is 
        distributed under this subdivision shall not be considered 
        income to or assets of the special fund for actuarial valuations 
        of the special fund for that year under sections 69.77, 356.215, 
        and 356.216 and Laws 2000, chapter 461, except to offset the 
        amount distributed. 
           (c) Twenty percent of the net total excess asset amount 
        determined under paragraph (b) is available for excess asset 
        amount payments under paragraph (d). 
           (d) Except as limited under paragraph (e), the net excess 
        asset amount payment to an eligible member is equal to the 
        amount determined under paragraph (c) multiplied by the units 
        applicable to the eligible member and divided by the total units 
        of all eligible members. 
           (e) A member who is an eligible member for the entire 12 
        months before the determination date is eligible for a full 
        excess asset amount payment pursuant to paragraph (d).  A member 
        who is an eligible member for less than 12 months before the 
        determination date is eligible for a prorated excess asset 
        amount payment.  If an eligible member dies before the 
        determination date and before the excess asset amount payment 
        commences, the association shall pay the eligible member's 
        excess asset amount payment to the eligible member's surviving 
        spouse or, if no surviving spouse, to the eligible member's 
        estate. 
           (f) The excess asset amount payments determined under this 
        subdivision commence on June 1 following the determination 
        date.  The board may disburse payments to eligible members in a 
        lump sum, 12 monthly installments, or any other manner that the 
        board determines. 
           Subd. 5.  [REPORT ON ANNUAL POSTRETIREMENT 
        ADJUSTMENTS.] The executive secretary shall submit a report on 
        the amount of all postretirement adjustments made under this 
        section and the manner in which those payments were determined 
        to the state auditor, the executive director of the legislative 
        commission on pensions and retirement, and the city clerk. 
           Subd. 6.  [CITY TAX LEVY.] If in any year after the 
        actuarial value of special fund assets, according to the most 
        recent annual actuarial valuation prepared in accordance with 
        sections 356.215 and 356.216, is greater than 102 percent of the 
        actuarial accrued liabilities of the special fund and 
        subsequently the actuarial value of assets is less than 100 
        percent of the actuarial accrued liabilities according to the 
        most recent annual actuarial valuation prepared according to 
        sections 356.215 and 356.216, the city of Minneapolis is not 
        required to levy a property tax to fund any deficit unless the 
        fund has two successive years when the actuarial value of assets 
        is less than 100 percent of the actuarial accrued liabilities 
        according to the most recent annual actuarial valuation prepared 
        according to sections 356.215 and 356.216. 
           Sec. 7.  [423C.07] [ACTUARIAL VALUATION DATE.] 
           Notwithstanding section 69.77, subdivision 2h, 356.215, or 
        356.216, the annual actuarial valuation of the association must 
        be completed by May 1 of each year. 
           Sec. 8.  [423C.08] [MEMBER CONTRIBUTION REFUND TO 
        BENEFICIARY UPON DEATH.] 
           If an active, deferred, or retired member of the 
        association dies and no survivor benefit is payable, the 
        designated beneficiary of the decedent or, if none, the legal 
        representative of the estate of the decedent is entitled, upon 
        application, to a refund.  The refund shall be an amount equal 
        to the member contributions to the credit of the decedent, plus 
        interest on those contributions at an annual compounded rate of 
        five percent from the first day of the month following the date 
        of death of the decedent, reduced by the sum of any service 
        pension or disability benefit previously paid by the fund to the 
        decedent. 
           Sec. 9.  [423C.09] [PAYMENTS EXEMPT FROM PROCESS.] 
           All payments made, or to be made, by the association under 
        this chapter shall be totally exempt from garnishment, 
        execution, or other legal process, except as provided in section 
        518.58, 518.581, or 518.6111.  No person entitled to a payment 
        shall have the right to assign the name, nor shall the 
        association have authority to recognize any assignment or to pay 
        any sum on account thereof.  Any attempt to transfer any right 
        or claim, or any part thereof, shall be void. 
           Sec. 10.  [423C.10] [LAW GOVERNING PENSIONS AND BENEFITS.] 
           A service pension or other retirement benefit for or on 
        behalf of a member of the Minneapolis firefighters relief 
        association must be calculated under the laws, articles of 
        incorporation, or relief association bylaws in effect on the day 
        that the active member terminated active employment in the 
        Minneapolis fire department as a firefighter. 
           Sec. 11.  [423C.11] [WORKERS' COMPENSATION ACT NOT 
        AFFECTED.] 
           This chapter shall not be construed as abridging, 
        repealing, or amending the laws of this state relating to the 
        provisions of the law commonly known as the Workers' 
        Compensation Act. 
           Sec. 12.  [423C.12] [RIGHT TO REDUCE PENSIONS.] 
           The relief association has the right and retains the right 
        to reduce the amount of pensions and benefits paid from its 
        special fund and to reduce and otherwise adjust those pensions 
        and benefits.  For any pension or benefit that was reduced, the 
        relief association has the right and retains the right to 
        increase or otherwise adjust these pensions or benefits within 
        the limits of this chapter.  
           Sec. 13.  [423C.13] [FINANCE DIRECTOR TO FILE REPORT WITH 
        THE REVENUE COMMISSIONER.] 
           (a) On or before March 1 each year, the Minneapolis finance 
        director shall file with the county auditor and the commissioner 
        of revenue a certificate stating that the Minneapolis 
        firefighters relief association exists and including any other 
        information that the commissioner or auditor may require. 
           (b) The commissioner of revenue shall provide the 
        Minneapolis finance director with the necessary documents for 
        the city of Minneapolis and the Minneapolis firefighters relief 
        association to carry out its duties and to receive the benefits 
        of sections 69.011 to 69.051, 297I.05, and 297I.10. 
           Sec. 14.  [423C.14] [STATE AUDITOR TO EXAMINE BOOKS.] 
           (a) The state auditor, annually, shall examine the books 
        and accounts of the secretary and of the treasurer of the 
        Minneapolis firefighters relief association. 
           (b) If the state auditor finds that any money in the 
        special fund of the relief association was expended for purposes 
        that were not authorized by this chapter, the state auditor 
        shall report that to the governor, who shall then direct the 
        commissioner of finance not to issue any further warrants to the 
        relief association until the state auditor reports that the 
        money which was unlawfully expended has been replaced.  The 
        governor additionally may take such further action as the 
        emergency may demand. 
           Sec. 15.  [423C.15] [ACTUARIAL PROVISIONS.] 
           Subdivision 1.  [CITY NORMAL COST CONTRIBUTION ADJUSTMENT.] 
        Notwithstanding sections 69.77, 356.215, and 356.216, or other 
        law to the contrary, the required city contributions toward the 
        association's normal cost, as determined by the actuary, are 
        reduced below that otherwise payable by the full amount of 
        active member contributions required by law to be directed to 
        the association's health insurance escrow account rather than to 
        the special fund. 
           Subd. 2.  [SUSPENSION OF NORMAL COST 
        CONTRIBUTIONS.] Notwithstanding the provisions of section 69.77, 
        or any other law to the contrary, if a total excess asset amount 
        exists, as defined in section 423C.01, subdivision 27, paragraph 
        (a), the city is not required to make a contribution to the fund 
        for the normal cost of active members. 
           Subd. 3.  [AMORTIZATION TREATMENT.] Notwithstanding section 
        69.77, subdivision 2b, 356.215, 356.216, or any other law to the 
        contrary, if the actuarial report for the Minneapolis 
        firefighters relief association indicates an unfunded actuarial 
        accrued liability, the unfunded obligation is to be amortized on 
        a level dollar basis by December 31 of the year occurring 15 
        years later.  If subsequent actuarial valuations determine a net 
        actuarial experience loss incurred during the year which ended 
        as of the day before the most recent actuarial valuation date, 
        any unfunded liability due to that loss is to be amortized on a 
        level dollar basis by December 31 of the year occurring 15 years 
        later. 
           Subd. 4.  [LIMITATION.] Notwithstanding subdivision 3, the 
        amortization period may not exceed the average life expectancy 
        of the remaining members. 
           Sec. 16.  [EFFECT ON ACCRUED BENEFITS AND BENEFITS 
        PAYABLE.] 
           (a) The legislature intends by this article to recodify the 
        prior local laws applicable to the Minneapolis firefighters 
        relief association. 
           (b) This article is not intended to increase or reduce the 
        pensions or benefits currently payable to pension and benefit 
        recipients of the Minneapolis firefighters relief association, 
        except as provided in Minnesota Statutes, section 423C.05, 
        subdivision 9.  All pensions and benefits payable from the 
        Minneapolis firefighters relief association in force on the 
        effective date of this section as reflected in the records of 
        the relief association as of that date continue. 
           (c) This article is not intended to modify, impair, or 
        diminish the pension or benefit entitlements accrued or service 
        credited to active or deferred members of the Minneapolis 
        firefighters relief association on the effective date of this 
        article as reflected in the records of the relief association as 
        of that date.  If the secretary of the relief association 
        determines that any provision of this article, except as 
        provided in Minnesota Statutes, section 423C.05, subdivision 9, 
        does function to modify, impair, or diminish the pension or 
        benefit entitlements that had been accrued or service that had 
        been credited to an active or deferred relief association 
        member, the secretary shall certify that determination and a 
        recommendation as to the required legislative correction, if 
        any, to the chairs of the legislative commission on pensions and 
        retirement, the house governmental operations committee, the 
        senate governmental operations committee, and the executive 
        director of the legislative commission on pensions and 
        retirement. 
           Sec. 17.  [REPEALER.] 
           (a) Laws 1907, chapter 24; Laws 1913, chapters 318 and 419; 
        Laws 1917, chapter 196; Laws 1919, chapters 515 and 523; Laws 
        1921, chapter 404; Laws 1923, chapter 61; and Laws 1945, chapter 
        322, are repealed. 
           (b) Laws 1959, chapter 491, is repealed.  Laws 1959, 
        chapter 568, as amended by Extra Session Laws 1961, chapter 3, 
        section 1; and Laws 1973, chapter 361, section 1, is repealed. 
           (c) Laws 1961, chapter 109, and Extra Session Laws 1961, 
        chapter 3, are repealed.  Laws 1963, chapter 318, as amended by 
        Laws 1965, chapter 578, section 1; Laws 1967, chapter 824, 
        section 1; and Laws 1969, chapter 287, sections 1 and 2, is 
        repealed.  Laws 1965, chapter 519, as amended by Laws 1967, 
        chapter 819, section 1; Laws 1969, chapter 123, sections 1 and 
        2; Laws 1975, chapter 57, section 1; Laws 1977, chapter 164, 
        section 2; Laws 1990, chapter 589, article 1, section 5; Laws 
        1992, chapter 454, sections 2 and 3; Laws 1994, chapter 591, 
        article 1, section 1; Laws 1996, chapter 448, article 3, section 
        1; and Laws 1997, chapter 233, article 4, section 12, is 
        repealed.  Laws 1965, chapter 578, as amended by Laws 1967, 
        chapter 824, section 1; and Laws 1969, chapter 287, section 1, 
        is repealed.  Laws 1967, chapter 819, as amended by Laws 1969, 
        chapter 123, section 1; Laws 1975, chapter 57, section 1; Laws 
        1977, chapter 164, section 2; Laws 1990, chapter 589, article 1, 
        section 5; Laws 1992, chapter 454, sections 2 and 3; Laws 1994, 
        chapter 591, article 1, section 1; Laws 1996, chapter 448, 
        article 3, section 1; and Laws 1997, chapter 233, article 4, 
        section 12, is repealed.  Laws 1967, chapter 824, as amended by 
        Laws 1969, chapter 287, section 1, is repealed.  Laws 1969, 
        chapter 123, as amended by Laws 1975, chapter 57, section 1; 
        Laws 1977, chapter 164, section 2; Laws 1990, chapter 589, 
        article 1, section 5; Laws 1992, chapter 454, sections 2 and 3; 
        Laws 1994, chapter 591, article 1, section 1; Laws 1996, chapter 
        448, article 3, section 1; and Laws 1997, chapter 233, article 
        4, section 12, is repealed.  Laws 1969, chapter 287, is repealed.
           (d) Laws 1971, chapter 542, as amended by Laws 1993, 
        chapter 125, article 1, section 1, is repealed.  Laws 1975, 
        chapter 57, as amended by Laws 1977, chapter 164, section 2; 
        Laws 1990, chapter 589, article 1, section 5; Laws 1992, chapter 
        454, sections 2 and 3; Laws 1995, chapter 591, article 1, 
        section 1; Laws 1996, chapter 448, article 3, section 1; and 
        Laws 1997, chapter 233, article 4, section 12, is repealed.  
        Laws 1977, chapter 164, section 2, as amended by Laws 1990, 
        chapter 589, article 1, section 5; Laws 1992, chapter 454, 
        sections 2 and 3; Laws 1994, chapter 591, article 1, section 1; 
        Laws 1996, chapter 448, article 3, section 1; and Laws 1997, 
        chapter 233, article 4, section 12, is repealed. 
           (e) Laws 1980, chapter 607, article XV, sections 8, as 
        amended by Laws 1992, chapter 471, article 2, section 2; 9, as 
        amended by Laws 1987, chapter 322, section 6; Laws 1987, chapter 
        372, article 2, section 5; Laws 1992, chapter 471, article 2, 
        section 2; and Laws 1993, chapter 125, article 1, section 1; and 
        10, as amended by Laws 1992, chapter 471, article 2, section 3, 
        is repealed.  Laws 1988, chapters 572, section 4; and 574, 
        section 3, are repealed.  Laws 1989, chapter 319, article 19, 
        sections 6, as amended by Laws 1992, chapter 471, article 2, 
        section 4; and 7, as amended by Laws 1990, chapter 570, article 
        12, section 63; Laws 1992, chapter 471, article 2, sections 5 
        and 6; Laws 1996, chapter 438, article 4, sections 12 and 13; 
        and Laws 1997, chapter 233, article 4, sections 13 to 16, is 
        repealed. 
           (f) Laws 1990, chapter 589, article 1, sections 5, as 
        amended by Laws 1996, chapter 448, article 3, section 1; and 
        Laws 1997, chapter 233, article 4, section 12; and 6, as amended 
        by Laws 1992, chapter 471, article 2, section 7, is repealed.  
        Laws 1992, chapter 429, is repealed.  Laws 1992, chapter 454, 
        section 2, as amended by Laws 1994, chapter 591, article 1, 
        section 1; Laws 1996, chapter 448, article 3, section 1; and 
        Laws 1997, chapter 233, article 4, section 12, is repealed.  
        Laws 1992, chapter 471, article 2, as amended by Laws 1996, 
        chapter 438, article 4, sections 12 and 13; and Laws 1997, 
        chapter 233, article 4, sections 13 and 15, is repealed.  Laws 
        1993, chapter 125, as amended by Laws 1997, chapter 233, article 
        4, section 17, is repealed.  Laws 1993, chapter 192, section 32, 
        is repealed.  Laws 1994, chapter 591, as amended by Laws 1997, 
        chapter 233, article 4, section 12, is repealed.  Laws 1994, 
        chapter 632, article 3, section 14; Laws 1996, chapter 448, 
        articles 2, section 3; and 3, section 1; Laws 1997, chapter 233, 
        article 4, sections 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, and 
        22; Laws 1998, chapter 390, article 7, section 2; and Laws 2000, 
        chapter 461, article 17, sections 6, 7, 8, 9, 10, 11, 12, and 
        13, are repealed. 
           Sec. 18.  [EFFECTIVE DATE.] 
           Sections 1 to 16 are effective on July 1, 2001, or on the 
        day after the city council of the city of Minneapolis and its 
        chief clerical officer timely complete their compliance with 
        Minnesota Statutes, section 645.021, subdivisions 2 and 3, 
        whichever is later. 

                                   ARTICLE 16 
              VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION PROVISIONS
           Section 1.  Minnesota Statutes 2000, section 424A.04, is 
        amended by adding a subdivision to read:  
           Subd. 3.  [CONDITIONS ON RELIEF ASSOCIATION 
        CONSULTANTS.] (a) If a volunteer firefighter relief association 
        hires or contracts with a consultant to provide legal or 
        financial advice, the association shall obtain and the 
        consultant shall provide a copy of the consultant's certificate 
        of insurance. 
           (b) A consultant is any person who is employed under 
        contract to provide legal or financial advice and who is or who 
        represents to the volunteer firefighter relief association that 
        the person is: 
           (1) an actuary; 
           (2) a licensed public accountant or a certified public 
        accountant; 
           (3) an attorney; 
           (4) an investment advisor or manager, or an investment 
        counselor; 
           (5) an investment advisor or manager selection consultant; 
           (6) a pension benefit design advisor or consultant; or 
           (7) any other financial consultant. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective July 1, 2001. 

                                   ARTICLE 17 
               ONE PERSON OR SMALL GROUP SERVICE CREDIT PURCHASES
           Section 1.  [TEACHERS RETIREMENT ASSOCIATION; SABBATICAL 
        LEAVE OF ABSENCE SERVICE CREDIT PURCHASE.] 
           (a) An eligible person described in paragraph (b) is 
        entitled to purchase 0.34 of a year of allowable and formula 
        service credit from the teachers retirement association. 
           (b) An eligible person is a person who: 
           (1) was born on August 7, 1942; 
           (2) was employed by independent school district No. 11, 
        Anoka-Hennepin, on August 28, 1970; 
           (3) was on a sabbatical leave of absence from July 1, 1977, 
        to June 30, 1978; and 
           (4) due to inadvertent clerical error by independent school 
        district No. 11, Anoka-Hennepin, did not have full contributions 
        for the sabbatical leave made in a timely fashion and 0.654 of a 
        year of service credit was credited rather than one year of 
        service for the sabbatical leave. 
           (c) To purchase the service credit under this section, the 
        eligible person must pay to the teachers retirement association 
        the amount of the shortage in member contributions for the 
        sabbatical leave period plus interest from June 30, 1978, to the 
        date on which payment is made at an annual compound rate of 8.5 
        percent.  Authority to make this payment expires on July 1, 
        2002, or the date of termination of service, whichever is 
        earlier. 
           (d) If the eligible person makes the payment required in 
        paragraph (c) in a timely manner, independent school district 
        No. 11, Anoka-Hennepin, may pay the balance of the full prior 
        service credit purchase payment amount calculated under 
        Minnesota Statutes, section 356.55 or 356.551, whichever 
        applies.  If independent school district No. 11, Anoka-Hennepin, 
        does not pay the balance within 30 days of notification by the 
        executive director of the teachers retirement association of the 
        payment of the member contribution payment by the eligible 
        person under paragraph (c), the executive director shall notify 
        the commissioner of finance of that fact and the commissioner 
        shall deduct from any state aid payable to independent school 
        district No. 11, Anoka-Hennepin, that amount, plus interest on 
        that amount of 1.5 percent per month for each month or portion 
        of a month that has elapsed from the effective date of this 
        section. 
           (e) The eligible person shall provide any relevant 
        documentation related to eligibility to make this service credit 
        purchase that is required by the executive director of the 
        teachers retirement association. 
           Sec. 2.  [TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF 
        EXTENDED LEAVE OF ABSENCE SERVICE CREDIT.] 
           (a) An eligible person, as described in paragraph (b), is 
        entitled to purchase allowable and formula service credit in the 
        teachers retirement association for the period specified in 
        paragraph (c) by making the payment specified in Minnesota 
        Statutes, section 356.55. 
           (b) An eligible person is a person who: 
           (1) was born on May 25, 1948; 
           (2) was employed by the Hutchinson public schools for 26 
        years; 
           (3) was granted an extended leave of absence on May 27, 
        1997; and 
           (4) due to a clerical error within the person's electrical 
        business, omitted payment of contributions under Minnesota 
        Statutes, section 354.094, for the 1997-1998 school year. 
           (c) The prior service credit purchase period is the 
        1997-1998, 1998-1999, and 1999-2000 school years. 
           (d) The service credit purchase authority expires on August 
        31, 2001, or the date of the person's retirement, whichever is 
        earlier. 
           Sec. 3.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PURCHASE 
        OF PREVIOUSLY UNCREDITED WHITE BEAR LAKE PUBLIC SCHOOL CLERICAL 
        SERVICE.] 
           (a) An eligible person described in paragraph (b) is 
        entitled to receive credit for one year of allowable service 
        from the public employees retirement association on August 31, 
        2001. 
           (b) An eligible person is a person who: 
           (1) was born on July 24, 1939; 
           (2) was initially employed by independent school district 
        No. 624, White Bear Lake, as a casual clerical employee on March 
        15, 1971; 
           (3) was subsequently employed as a full-time clerical 
        employee by independent school district No. 624, White Bear 
        Lake, from the 1973-1974 school year until the 1990-1991 school 
        year; 
           (4) was subsequently employed as a teacher by independent 
        school district No. 624, White Bear Lake, from August 26, 1991; 
        and 
           (5) was not included in coverage by the public employees 
        retirement association for full-time clerical employment during 
        the 1973-1974 school year. 
           (c) The prior service credit purchase payment must be 
        determined under Minnesota Statutes, section 356.55 or 356.551, 
        whichever provision is in effect, and must include the impact of 
        the purchase on the eligible person's prospective retirement 
        annuity from the teachers retirement association.  
        Notwithstanding any provision of Minnesota Statutes, section 
        356.55 or 356.551, to the contrary, independent school district 
        No. 624, White Bear Lake, is obligated to pay the full required 
        service credit payment, including any amount attributable to the 
        teachers retirement association.  If the school district does 
        not make payment of the service credit purchase amount by August 
        31, 2001, the executive director of the public employees 
        retirement association and the executive director of the 
        teachers retirement association shall notify the commissioner of 
        finance of the school district's failure.  Following 
        notification, the commissioner of finance shall deduct the 
        required amount from any state aid otherwise payable to 
        independent school district No. 624, White Bear Lake, and shall 
        transfer the appropriate amounts to the public employees 
        retirement fund and the teachers retirement fund. 
           (d) The eligible person must provide the executive director 
        of the public employees retirement association with necessary 
        documentation of the applicability of this section and with any 
        other relevant information that the executive director may 
        require. 
           Sec. 4.  [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION; 
        SERVICE CREDIT PURCHASE AUTHORIZATION.] 
           (a) Notwithstanding any provision of law to the contrary, 
        an eligible person described in paragraph (b) is authorized to 
        purchase allowable service credit under procedures specified in 
        Minnesota Statutes, section 356.55 or 356.551, whichever is in 
        effect, from the Minneapolis teachers retirement fund 
        association for the period described in paragraph (c). 
           (b) An eligible person is a person who: 
           (1) was born on July 21, 1941; 
           (2) initially was employed as a teacher by independent 
        school district No. 281, Robbinsdale, in December 1962; 
           (3) began employment as a teacher in special school 
        district No. 1, Minneapolis, in August 1985; 
           (4) currently is a special education teacher at the Webster 
        open school; and 
           (5) had no retirement contributions or social security 
        contributions withheld from compensation by special school 
        district No. 1, Minneapolis, for the 1985-1986 school year. 
           (c) The allowable service credit purchase period is the 
        1985-1986 school year. 
           (d) The eligible person must provide all relevant 
        documentation of the applicability of the requirements set forth 
        in paragraph (b) and any other applicable information that the 
        executive director of the Minneapolis teachers retirement fund 
        association may request. 
           (e) Allowable service credit for the purchase period must 
        be granted by the Minneapolis teachers retirement fund 
        association to the eligible person upon the receipt of the 
        payment amounts.  If the service credit purchase created 
        additional liabilities in the teachers retirement association, 
        the applicable portion of the full payment amounts must be 
        transferred to that association. 
           (f) The prior service credit purchase authority expires on 
        September 1, 2001, or on the date of the termination of active 
        teaching service with special school district No. 1, 
        Minneapolis, by the eligible person, whichever occurs earlier. 
           Sec. 5.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PAYMENT 
        OF OMITTED SALARY DEDUCTIONS.] 
           Subdivision 1.  [APPLICATION.] A person who was born on 
        February 1, 1961, who was employed by Lac qui Parle county in 
        March 1989, June 1989, and July 1989, but who first had public 
        employees retirement association member contributions deducted 
        in August 1989, is entitled to purchase service credit from the 
        public employees retirement association for the service in 
        March, June, and July 1989. 
           Subd. 2.  [PAYMENT.] (a) The purchase payment amount for 
        the service credit purchase authorized in subdivision 1 is 
        governed by Minnesota Statutes, section 356.55 or 356.551, 
        whichever is applicable. 
           (b) To purchase the allowable service credit, the eligible 
        person must pay an amount equal to the employee contribution 
        rate or rates in effect during the service credit purchase 
        period applied to the actual salary in effect during that 
        period, plus 8.5 percent compound annual interest from the date 
        the contributions should have been made until the date of actual 
        payment. 
           (c) Upon receipt of the payment by the eligible person as 
        specified under paragraph (b), the executive director of the 
        public employees retirement association shall notify the chief 
        administrative officer of Lac qui Parle county of that fact.  
        Within 30 days of that notification, Lac qui Parle county shall 
        pay to the public employees retirement association the balance 
        of the service credit purchase payment amount under Minnesota 
        Statutes, section 356.55 or 356.551, whichever is in effect, 
        that is not paid by the eligible person. 
           (d) If Lac qui Parle county does not make the payments 
        required by paragraph (c) in a timely fashion, the executive 
        director of the public employees retirement association shall 
        notify the commissioner of finance, who shall then deduct the 
        required amounts from any state aid payable to the county, plus 
        interest at the rate of one percent per month or part of a month 
        that has elapsed since the date on which the eligible person 
        made payment under paragraph (b). 
           Subd. 3.  [APPLICATION; DOCUMENTATION.] A person described 
        in subdivision 1 must apply to the executive director of the 
        public employees retirement association to make the purchase.  
        The application must be on a form provided by the executive 
        director and must include all necessary documentation of the 
        applicability of this section and any other relevant information 
        that the executive director may require. 
           Subd. 4.  [LIMITATION.] Authority under this section 
        expires on July 1, 2002, or upon termination of service, 
        whichever is earlier. 
           Sec. 6.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PAYMENT 
        OF OMITTED SALARY DEDUCTION.] 
           Subdivision 1.  [APPLICATION.] (a) An eligible person 
        described in paragraph (b) and an eligible person described in 
        paragraph (c) are authorized to purchase service credit in the 
        public employees retirement association general plan for the 
        period specified in paragraph (d). 
           (b) An eligible person is a person who: 
           (1) was born on February 11, 1948; 
           (2) is currently a member of the public employees 
        retirement association general plan; and 
           (3) is currently employed by the Minneapolis park board and 
        was first employed by that board on March 8, 1983. 
           (c) An eligible person is a person who: 
           (1) was born on August 12, 1936; 
           (2) is currently a member of the public employees 
        retirement association general plan; and 
           (3) is currently employed by the Minneapolis park board and 
        was first employed by that board on April 4, 1983. 
           (d) The service credit purchase period is any period of 
        previously uncredited service, unless properly excluded under 
        law, during which the eligible person in paragraph (b) or (c), 
        as applicable, was employed by the Minneapolis park board 
        following the date on which, under applicable requirements of 
        public employees retirement association law, the applicable 
        eligible person should have been reported for plan membership. 
           Subd. 2.  [PAYMENT.] The purchase payment for the service 
        credit purchases authorized in subdivision 1 is governed by 
        Minnesota Statutes, section 356.55 or 356.551, whichever is 
        applicable. 
           Subd. 3.  [DOCUMENTATION.] A person described in 
        subdivision 1 must apply to the executive director of the public 
        employees retirement association to make the purchase.  The 
        application must be in writing and must include all necessary 
        documentation of the applicability of this section and any other 
        relevant information required by the executive director.  
           Subd. 4.  [APPLICATION DATE.] Authority to purchase service 
        credit under this section terminates on January 1, 2002, or upon 
        termination of the applicable person from service. 
           Sec. 7.  [PERA-COORDINATED RETIREMENT PLAN; SERVICE CREDIT 
        PURCHASE AUTHORIZED.] 
           (a) Notwithstanding any provision of law to the contrary, 
        an eligible person described in paragraph (b) is authorized to 
        purchase allowable service credit from the coordinated plan of 
        the public employees retirement system for the period described 
        in paragraph (c) by making a prior service credit purchase 
        payment required under Minnesota Statutes, section 356.55 or 
        356.551, whichever is applicable.  Notwithstanding the authority 
        in these sections, neither the Minneapolis employees retirement 
        fund nor the city of Minneapolis is authorized to pay any 
        portion of the purchase payment amount. 
           (b) An eligible person is a person who: 
           (1) is a current employee of the Minneapolis employees 
        retirement fund and is a current member of the coordinated plan 
        of the public employees retirement association and an inactive 
        member of the unclassified retirement plan of the Minnesota 
        state retirement system; 
           (2) was born on April 26, 1949; 
           (3) was employed as a full-time instructor temporary 
        classification on August 15, 1981, by the accounting department, 
        Carlson school of management, University of Minnesota; and 
           (4) was subsequently reappointed annually as a full-time 
        instructor temporary classification for an additional three 
        years and terminated employment on August 14, 1985. 
           (c) The allowable service credit purchase period is the 
        period described in paragraph (b), clauses (3) and (4). 
           (d) The eligible person must provide all relevant 
        documentation of the applicability of the requirements in 
        paragraph (b) and any other applicable information that the 
        executive director of the public employees retirement 
        association may request. 
           (e) Allowable service credit for the purchase period must 
        be granted by the coordinated plan of the public employees 
        retirement fund to the eligible person upon receipt of the prior 
        service credit purchase payment amount. 
           (f) The prior service credit purchase authority expires on 
        July 1, 2002, or on the date of termination of active service 
        covered by the public employees retirement association by the 
        eligible person, whichever occurs earlier. 
           Sec. 8.  [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; PURCHASE 
        OF PRIOR SERVICE CREDIT.] 
           Subdivision 1.  [AUTHORIZATION.] A member of the public 
        employees retirement association police and fire plan who was 
        born on August 2, 1951, who was employed by the city of Brainerd 
        as a police officer before February 29, 1996, and who has at 
        least three years of allowable service credit with the public 
        employees retirement association police and fire fund is 
        entitled to purchase up to ten years of allowable service credit 
        for employment by the city of Brainerd as a full-time police 
        officer in a position that was not covered by the police and 
        fire fund but was covered by a local relief association governed 
        by Minnesota Statutes, section 69.77.  This authorization 
        applies notwithstanding any contrary provision of Minnesota 
        Statutes, section 353A.10.  To purchase service credit, an 
        eligible person must make payments required under Minnesota 
        Statutes, section 356.55 or 356.551, whichever is applicable.  
        This authorization applies only if the person is not entitled to 
        receive a current or deferred service pension or retirement 
        annuity or a current disability benefit from another Minnesota 
        public pension plan, including a local police relief 
        association, for that service. 
           Subd. 2.  [APPLICATION AND DOCUMENTATION.] A person who 
        desires to purchase service credit under subdivision 1 must 
        apply in writing with the executive director of the public 
        employees retirement association to make the purchase.  The 
        application must include all necessary documentation of the 
        person's qualifications to make the purchase, signed written 
        permission to allow the executive director to request and 
        receive necessary verification of applicable facts and 
        eligibility requirements, and any other relevant information 
        that the executive director may require. 
           Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
        for the purchase period must be granted by the public employees 
        retirement association to the purchasing person only upon 
        receipt of the purchase payment amount.  Payment must be made 
        before the person's effective date of retirement. 
           Sec. 9.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PURCHASE 
        OF SERVICE FOR UNCREDITED SERVICE AS A MEMBER OF THE ST. PAUL 
        CITY COUNCIL.] 
           Subdivision 1.  [APPLICABILITY.] This section applies to a 
        person: 
           (1) who was born September 10, 1938; 
           (2) who began service as a member of the St. Paul city 
        council in 1970; 
           (3) who was eligible for membership in the public employees 
        retirement association for the period from July 1, 1974, to 
        March 31, 1975; 
           (4) for whom no employer contributions were paid and no 
        employee contributions deducted by the city of St. Paul for the 
        period described in clause (3); and 
           (5) who retired September 1, 2000, and is currently 
        receiving retirement annuities from the St. Paul teachers 
        retirement fund association, the public employees retirement 
        association general plan, and the Minnesota state retirement 
        system general plan. 
           Subd. 2.  [PURCHASE OF SERVICE.] (a) A person described in 
        subdivision 1 may purchase service credit under Minnesota 
        Statutes, section 356.55, in the public employees retirement 
        association general plan for the period described in subdivision 
        1, clause (3). 
           (b) To purchase the allowable service credit, the eligible 
        person must pay an amount equal to the employee contribution 
        rate or rates in effect during the service credit purchase 
        period applied to the actual salary in effect during that 
        period, plus 8.5 percent compound annual interest from the date 
        the contributions should have been made until the date of actual 
        payment. 
           (c) Upon receipt of the payment under paragraph (b) by the 
        eligible person, the executive director of the public employees 
        retirement association shall notify the chief administrative 
        officer of the city of St. Paul of that fact.  Within 30 days of 
        that notification, the city of St. Paul shall pay to the public 
        employees retirement association the balance of the service 
        credit purchase payment amount under Minnesota Statutes, section 
        356.55, that is not paid by the eligible person. 
           (d) If the city of St. Paul does not make the payments 
        required by paragraph (c) in a timely fashion, the executive 
        director of the public employees retirement association shall 
        notify the commissioner of finance, who shall then deduct the 
        required amounts from any state aid payable to the city, plus 
        interest at the rate of one percent per month or part of a month 
        that has elapsed since the date on which the eligible person 
        made payment under paragraph (b). 
           Subd. 3.  [APPLICATION; DOCUMENTATION.] A person described 
        in subdivision 1 must apply to the executive director of the 
        public employees retirement association to make the purchase.  
        The application must be on a form provided by the executive 
        director and must include all necessary documentation of the 
        applicability of this section and any other relevant information 
        that the executive director may require. 
           Subd. 4.  [LIMITATION.] Authority under this section 
        expires on September 1, 2001. 
           Subd. 5.  [BENEFIT REVISION DATE.] The annuity of the 
        eligible individual under subdivision 1 is to be revised on the 
        first day of the month following the month in which the full 
        purchase price determined under subdivision 2 is received by the 
        public employees retirement association. 
           Subd. 6.  [LUMP-SUM PAYMENT.] The public employees 
        retirement association shall also pay the person described in 
        subdivision 1 a lump-sum amount equal to the difference between 
        the annuity received from the association from September 1, 
        2000, to the date of payment for the service credit and the 
        amount the person would have received with the additional 
        service credit purchased under this section. 
           Sec. 10.  [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; PURCHASE 
        OF SERVICE CREDIT FOR EMPLOYEE ERRONEOUSLY ENROLLED IN 
        PERA-GENERAL.] 
           (a) Notwithstanding any provision of law to the contrary, 
        because the legislature determines that the township made a 
        mistake in 1983 concerning the retirement coverage of the 
        part-time town constable, an eligible person described in 
        paragraph (b) is authorized to elect to transfer past service 
        credit for the period May 5, 1983, to August 29, 1987, in the 
        general employee retirement plan of the public employees 
        retirement association to the public employees police and fire 
        retirement plan.  The transfer includes the transfer of assets 
        provided for in paragraph (c).  The transfer occurs following 
        the receipt by the executive director of the public employees 
        retirement association of the payment amounts specified in 
        paragraphs (d) and (e). 
           (b) An eligible person is a person who: 
           (1) was born on October 23, 1956; 
           (2) was hired as a part-time town constable by White Bear 
        township from May 5, 1983, to August 29, 1987; and 
           (3) was covered by the general employees retirement plan of 
        the public employees retirement association rather than the 
        public employees police and fire retirement plan for this public 
        safety employer service.  
           (c) Assets equal to 86.31 percent of the actuarial accrued 
        liability of the general employees retirement plan of the public 
        employees retirement association determined with respect to the 
        eligible person by the actuary retained by the legislative 
        commission on pensions and retirement in accordance with 
        Minnesota Statutes, section 356.215, must be transferred from 
        the general employees retirement fund to the public employees 
        police and fire retirement fund.  The expense of the legislative 
        commission on pensions and retirement related to these 
        calculations must be reimbursed by the public employees police 
        and fire fund.  The transfer of assets must be made within 30 
        days of the date on which the eligible employee elects to 
        transfer past service credit to the public employees police and 
        fire retirement plan. 
           (d) To obtain the service credit transfer under this 
        section, the eligible person must pay to the public employees 
        police and fire retirement plan the difference between the 
        member contribution rate of the general employees retirement 
        plan of the public employees retirement association and the 
        member contribution rate of the public employees police and fire 
        retirement plan for the period May 5, 1983, to August 29, 1987, 
        applied to the eligible person's average salary for that period, 
        plus 8.5 percent compound annual interest on the total from July 
        1, 1985, to the date of payment.  Authority for the eligible 
        person to make the payment under this paragraph expires on July 
        1, 2002. 
           (e) If the eligible person makes the required payment under 
        paragraph (d) in a timely manner, the executive director of the 
        public employees retirement association shall notify the 
        clerk-treasurer of White Bear township of that fact.  Within 30 
        days of that notification, White Bear township shall pay to the 
        public employees police and fire fund:  (1) the balance of the 
        payment amount calculated under Minnesota Statutes, section 
        356.55 or 356.551, whichever is in effect, that exceeds the 
        total of the amount transferred under paragraph (c) and the 
        amount paid by the eligible person under paragraph (d); and (2) 
        the cost associated with the actuarial calculation under 
        paragraph (c).  If White Bear township does not make the payment 
        required by this paragraph in a timely fashion, the executive 
        director of the public employees retirement association shall 
        notify the commissioner of finance of that fact, who shall then 
        deduct the required amount from any subsequent state aid or 
        other state payments to the township, plus interest at the rate 
        of one percent per month or a part of a month that has elapsed 
        since the date on which the eligible person made payment under 
        paragraph (d). 
           (f) The eligible person must elect to make the service 
        credit transfer on a form prescribed by the executive director 
        of the public employees retirement association.  The eligible 
        person must supply all necessary documentation of the 
        applicability of this section and any other relevant information 
        that the executive director may require. 
           (g) Authority under this section expires on July 1, 2002, 
        or upon the retirement of the eligible person from the general 
        employees retirement plan of the public employees retirement 
        association or from the public employees police and fire 
        retirement plan, whichever is earlier.  
           Sec. 11.  [REPEALER.] 
           Section 8 is repealed effective May 16, 2002. 
           Sec. 12.  [EFFECTIVE DATE.] 
           Sections 1 to 10 are effective the day following final 
        enactment. 

                                   ARTICLE 18
                                   ELECTIONS
           Section 1.  Minnesota Statutes 2000, section 10A.31, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [QUALIFICATION OF POLITICAL PARTIES.] (a) A 
        major political party qualifies for inclusion on the income tax 
        form and property tax refund return as provided in subdivision 3 
        if it qualifies as a major political party by July 1 of the 
        taxable year. 
           (b) A minor political party qualifies for inclusion on the 
        income tax form and property tax refund return as provided in 
        subdivision 3 if the secretary of state certifies to the 
        commissioner of revenue it qualifies as a minor party statewide 
        by July 1 of the taxable year that the party satisfies the 
        following conditions:  
           (1) in the last general election, the party ran a candidate 
        for the office of governor and lieutenant governor, secretary of 
        state, state auditor, or attorney general, who received votes in 
        each county that in the aggregate total at least one percent of 
        the total number of individuals who voted in the election; 
           (2) it is a political party, not a principal campaign 
        committee; and 
           (3) it has held a state convention in the last two years 
        and an officer of the party has filed with the secretary of 
        state a certification to that effect. 
           (c) The secretary of state shall notify each major and 
        minor political party by the first Monday in January of each 
        odd-numbered year of the conditions necessary for the party to 
        participate in income tax form and property tax refund return 
        programs. 
           (d) The secretary of state shall notify each political 
        party, the commissioner of revenue, and the campaign finance and 
        public disclosure board by July 1 of each year and following 
        certification of the results of each general election of the 
        political parties that qualify for inclusion on the income tax 
        form and property tax refund return as provided in subdivision 3.
           Sec. 2.  Minnesota Statutes 2000, section 10A.31, 
        subdivision 7, is amended to read: 
           Subd. 7.  [DISTRIBUTION OF GENERAL ACCOUNT.] (a) Within two 
        weeks after certification by the state canvassing board of As 
        soon as the board has obtained the results of the general 
        primary election from the secretary of state, but no later than 
        one week after certification of the primary results by the state 
        canvassing board, the board must distribute the available money 
        in the general account, as certified by the commissioner of 
        revenue on November September 1 and according to allocations set 
        forth in subdivision 5, in equal amounts to all candidates of a 
        major political party whose names are to appear on the ballot in 
        the general election and who: 
           (1) have signed a spending limit agreement under section 
        10A.322; 
           (2) have filed the affidavit of contributions required by 
        section 10A.323; 
           (3) have filed the agreement required under paragraph (c); 
        and 
           (3) (4) were opposed in either the primary election or the 
        general election; and.  
           (4) are either a candidate for statewide office who 
        received at least five percent of the votes cast in the general 
        election for that office or a candidate for legislative office 
        who received at least ten percent of the votes cast in the 
        general election for that seat. 
           (b) The public subsidy under this subdivision may not be 
        paid in an amount that would cause the sum of the public subsidy 
        paid from the party account plus the public subsidy paid from 
        the general account to exceed 50 percent of the expenditure 
        limit for the candidate or 50 percent of the expenditure limit 
        that would have applied to the candidate if the candidate had 
        not been freed from expenditure limits under section 10A.25, 
        subdivision 10.  Money from the general account not paid to a 
        candidate because of the 50 percent limit must be distributed 
        equally among all other qualifying candidates for the same 
        office until all have reached the 50 percent limit or the 
        balance in the general account is exhausted. 
           (c) No later than one week after the primary results have 
        been certified by the state canvassing board, a candidate 
        wishing to receive money distributed by the board under this 
        subdivision must execute and file an agreement with the board.  
        The agreement must provide that: 
           (1) if the candidate does not expend or promise to disburse 
        50 percent of the money distributed by the board under this 
        subdivision no later than the end of the final reporting period 
        preceding the general election, then the candidate agrees to 
        repay to the board the remainder of the money distributed to the 
        candidate under this subdivision no later than six months 
        following the date of the general election; and 
           (2) the candidate agrees to reimburse the board for all 
        reasonable costs, including litigation costs, incurred in 
        collecting any amount due following that date. 
           If the board determines that a candidate has failed to 
        repay money as required by an agreement under this subdivision, 
        the board may not distribute any additional money to the 
        candidate under this subdivision until the entirety of the 
        unexpended money is repaid or discharged. 
           Sec. 3.  Minnesota Statutes 2000, section 103C.311, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SUPERVISORS ELECTED AT LARGE.] (a) The 
        district board, after the initial election has been held, shall, 
        with the approval of the state board, divide a district into 
        five supervisor districts for purposes of nomination for 
        election.  At each election after the division, one or more 
        supervisors shall be nominated from each supervisor district.  A 
        supervisor must be a resident of the supervisor district to be 
        elected. 
           (b) If the boundary of a soil and water conservation 
        district has been substantially changed by a division of the 
        district, the district shall be divided into five supervisor 
        districts for nomination purposes.  
           (c) This subdivision does not disqualify a supervisor 
        during the term for which the supervisor was elected or 
        nominated for election.  Supervisors nominated from the 
        supervisor districts shall be included on the ballot for 
        election from the entire area included in the soil and water 
        conservation district.  
           (d) A certified copy of the minutes or the resolution of 
        the supervisors establishing supervisor districts must be 
        promptly filed by the chair of the district board with the 
        county auditor of the counties where the district is located and 
        with the state board. 
           Sec. 4.  Minnesota Statutes 2000, section 200.02, 
        subdivision 7, is amended to read: 
           Subd. 7.  [MAJOR POLITICAL PARTY.] (a) "Major political 
        party" means a political party that maintains a party 
        organization in the state, political division or precinct in 
        question and: (a) which that has presented at least one 
        candidate for election to a partisan office the office of: 
           (1) governor and lieutenant governor, secretary of state, 
        state auditor, or attorney general at the last preceding state 
        general election for those offices; or 
           (2) presidential elector or U.S. senator at the last 
        preceding state general election, which for presidential 
        electors; and 
           whose candidate received votes in each county in that 
        election and received votes from not less than five percent of 
        the total number of individuals who voted in that election; or. 
           (b) "Major political party" also means a political party 
        that maintains a party organization in the state, political 
        subdivision, or precinct in question and whose members present 
        to the secretary of state a petition for a place on the state 
        partisan primary ballot, which petition contains signatures of a 
        number of the party members equal to at least five percent of 
        the total number of individuals who voted in the preceding state 
        general election. 
           (c) A political party whose candidate receives a sufficient 
        number of votes at a state general election described in 
        paragraph (a) becomes a major political party as of January 1 
        following that election and retains its major party status 
        notwithstanding that the party fails to present a candidate who 
        receives the number and percentage of votes required under 
        paragraph (a) at the following state general election. 
           (d) A major political party whose candidates fail to 
        receive the number and percentage of votes required under 
        paragraph (a) at either state general election described by 
        paragraph (a) loses major party status as of December 31 
        following the most recent state general election. 
           Sec. 5.  Minnesota Statutes 2000, section 200.02, 
        subdivision 23, is amended to read: 
           Subd. 23.  [MINOR POLITICAL PARTY.] (a) "Minor political 
        party" means a political party that is not a major political 
        party as defined by subdivision 7 and that has adopted a state 
        constitution, designated a state party chair, held a state 
        convention in the last two years, filed with the secretary of 
        state no later than December 31 following the most recent state 
        general election a certification that the party has met the 
        foregoing requirements, and met the requirements of paragraph 
        (b) or (c) (e), as applicable. 
           (b) To be considered a minor party in all elections 
        statewide, the political party must have presented at least one 
        candidate for a partisan office voted on statewide election to 
        the office of: 
           (1) governor and lieutenant governor, secretary of state, 
        state auditor, or attorney general, at the last preceding state 
        general election for those offices; or 
           (2) presidential elector or U.S. senator at the preceding 
        state general election for presidential electors; and 
           who received votes in each county that in the aggregate 
        equal at least one percent of the total number of individuals 
        who voted in the election, or its members must have presented to 
        the secretary of state a nominating petition in a form 
        prescribed by the secretary of state containing the signatures 
        of party members in a number equal to at least one percent of 
        the total number of individuals who voted in the preceding state 
        general election. 
           (c) A political party whose candidate receives a sufficient 
        number of votes at a state general election described in 
        paragraph (b) becomes a minor political party as of January 1 
        following that election and retains its minor party status 
        notwithstanding that the party fails to present a candidate who 
        receives the number and percentage of votes required under 
        paragraph (b) at the following state general election. 
           (d) A minor political party whose candidates fail to 
        receive the number and percentage of votes required under 
        paragraph (b) at either state general election described by 
        paragraph (b) loses minor party status as of December 31 
        following the most recent state general election. 
           (c) (e) To be considered a minor party in an election in a 
        legislative district, the political party must have presented at 
        least one candidate for a legislative office in that district 
        who received votes from at least ten percent of the total number 
        of individuals who voted for that office, or its members must 
        have presented to the secretary of state a nominating petition 
        in a form prescribed by the secretary of state containing the 
        signatures of party members in a number equal to at least ten 
        percent of the total number of individuals who voted in the 
        preceding state general election for that legislative office. 
           Sec. 6.  [200.039] [PETITION REQUIREMENTS FOR BALLOT 
        QUESTIONS.] 
           If a statute: 
           (1) provides that a ballot question may or must be placed 
        on the ballot when a specified number of individuals have signed 
        a petition; and 
           (2) specifies the number of individuals required under the 
        statute as a percentage of the individuals who voted in a 
        previous election, the statute must be construed to mean that 
        the petition must be signed by a number of current voters equal 
        to the required percentage specified in the statute.  The 
        statute must not be construed to restrict the eligibility to 
        sign the petition to only those individuals who were eligible to 
        cast ballots or who did cast ballots in the previous election. 
           Sec. 7.  Minnesota Statutes 2000, section 201.016, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [VIOLATIONS; PENALTY.] (a) The county auditor 
        shall mail a violation notice to any voter who the county 
        auditor can determine has voted in a precinct other than the 
        precinct in which the voter maintains residence.  The notice 
        must be in the form provided by the secretary of state.  The 
        county auditor shall also change the status of the voter in the 
        statewide registration system to "challenged" and the voter 
        shall be required to provide proof of residence to either the 
        county auditor or to the election judges in the voter's precinct 
        before voting in the next election.  Any of the forms authorized 
        by section 201.061 for registration at the polling place may be 
        used for this purpose. 
           (b) A voter who votes in a precinct other than the precinct 
        in which the voter maintains residence after receiving an 
        initial violation notice as provided in this subdivision is 
        guilty of a petty misdemeanor.  Any subsequent violation 
           (c) A voter who votes in a precinct other than the precinct 
        in which the voter maintains residence after having been found 
        to have committed a petty misdemeanor under paragraph (b) is 
        guilty of a misdemeanor. 
           (d) Reliance by the voter on inaccurate information 
        regarding the location of the voter's polling place provided by 
        the state, county, or municipality is an affirmative defense to 
        a prosecution under this subdivision. 
           Sec. 8.  Minnesota Statutes 2000, section 201.022, is 
        amended to read: 
           201.022 [STATEWIDE REGISTRATION SYSTEM.] 
           Subdivision 1.  [ESTABLISHMENT.] The secretary of state 
        shall develop and implement maintain a statewide voter 
        registration system to facilitate voter registration and to 
        provide a central database containing voter registration 
        information from around the state.  The system must be 
        accessible to the county auditor of each county in the state.  
           Subd. 2.  [RULES.] The secretary of state shall make 
        permanent rules necessary to administer the system required in 
        subdivision 1.  The rules must at least:  
           (1) provide for voters to submit their registration to any 
        county auditor, the secretary of state, or the department of 
        public safety; 
           (2) provide for the establishment and maintenance of a 
        central database for all voter registration information; 
           (3) provide procedures for entering data into the statewide 
        registration system; 
           (4) provide for interaction with the computerized driver's 
        license records of the department of public safety; 
           (5) allow the offices of all county auditors and the 
        secretary of state to add, modify, and delete information from 
        the system to provide for accurate and up-to-date records; 
           (6) allow the offices of all county auditors and the 
        secretary of state's office to have access to the statewide 
        registration system for review and search capabilities; 
           (7) provide security and protection of all information in 
        the statewide registration system and to ensure that 
        unauthorized entry is not allowed; 
           (8) provide a system for each county to identify the 
        precinct to which a voter should be assigned for voting 
        purposes; and 
           (9) prescribe a procedure for phasing in or converting 
        existing computerized records to the statewide registration 
        system; 
           (10) prescribe a procedure for the return of completed 
        voter registration forms from the department of public safety to 
        the secretary of state or the county auditor; and. 
           (11) provide alternate procedures, effective until December 
        31, 1990, for updating voter records and producing polling place 
        rosters for counties.  The secretary of state shall determine no 
        later than June 1, 1990, whether these alternate procedures will 
        be required. 
           Sec. 9.  Minnesota Statutes 2000, section 202A.19, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LIMITS ON LOCAL GOVERNMENT MEETINGS.] 
        No special taxing district governing body, school board, county 
        board of commissioners, township board, or city council may 
        conduct a meeting after 6:00 p.m. on the day of a major 
        political party precinct caucus.  As used in this subdivision, 
        "special taxing district" has the meaning given in section 
        275.066. 
           Sec. 10.  Minnesota Statutes 2000, section 203B.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION PROCEDURES.] Except as 
        otherwise allowed by subdivision 2, an application for absentee 
        ballots for any election may be submitted at any time not less 
        than one day before the day of that election.  The county 
        auditor shall prepare absentee ballot application forms in the 
        format provided in the rules of the secretary of state and shall 
        furnish them to any person on request.  An application submitted 
        pursuant to this subdivision shall be in writing and shall be 
        submitted to:  
           (a) the county auditor of the county where the applicant 
        maintains residence; or 
           (b) the municipal clerk of the municipality, or school 
        district if applicable, where the applicant maintains residence. 
           An application shall be approved if it is timely received, 
        signed and dated by the applicant, contains the applicant's name 
        and residence and mailing addresses, and states that the 
        applicant is eligible to vote by absentee ballot for one of the 
        reasons specified in section 203B.02.  The application may 
        contain a request for the voter's date of birth, which must not 
        be made available for public inspection.  An application may be 
        submitted to the county auditor or municipal clerk by an 
        electronic facsimile device, at the discretion of the auditor or 
        clerk.  An application mailed or returned in person to the 
        county auditor or municipal clerk on behalf of a voter by a 
        person other than the voter must be deposited in the mail or 
        returned in person to the county auditor or municipal clerk 
        within ten days after it has been dated by the voter and no 
        later than six days before the election.  The absentee ballot 
        applications or a list of persons applying for an absentee 
        ballot may not be made available for public inspection until the 
        close of voting on election day.  
           An application under this subdivision may contain an 
        application under subdivision 5 to automatically receive an 
        absentee ballot application. 
           Sec. 11.  Minnesota Statutes 2000, section 203B.04, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PERMANENT ILLNESS OR DISABILITY.] (a) An 
        eligible voter who reasonably expects to be permanently unable 
        to go to the polling place on election day because of illness or 
        disability may apply to a county auditor or municipal clerk 
        under this section to automatically receive an absentee ballot 
        application before each election, other than an election by mail 
        conducted under section 204B.45, and to have the status as a 
        permanent absentee voter indicated on the voter's registration 
        record. 
           (b) The secretary of state shall adopt rules governing 
        procedures under this subdivision. 
           Sec. 12.  Minnesota Statutes 2000, section 203B.06, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [UNOFFICIAL BALLOTS.] If no official ballots are 
        ready at the time absentee balloting is scheduled to begin or 
        the supply is exhausted before absentee balloting ends, the 
        county auditor or municipal clerk shall prepare unofficial 
        ballots, printed or written as nearly as practicable in the form 
        of the official ballots.  These ballots may be used until the 
        official ballots are available. 
           Sec. 13.  Minnesota Statutes 2000, section 203B.07, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DELIVERY OF ENVELOPES, DIRECTIONS.] The 
        county auditor or the municipal clerk shall prepare, print, and 
        transmit a return envelope, a ballot envelope, and a copy of the 
        directions for casting an absentee ballot to each applicant 
        whose application for absentee ballots is accepted pursuant to 
        section 203B.04.  The directions for casting an absentee ballot 
        shall be printed in at least 14-point bold type with heavy 
        leading and may be printed on the ballot envelope.  When a 
        person requests the directions in Braille or on cassette tape, 
        the county auditor or municipal clerk shall provide them in the 
        form requested.  The secretary of state shall prepare Braille 
        and cassette copies and make them available.  
           When a voter registration card is sent to the applicant as 
        provided in section 203B.06, subdivision 4, the directions or 
        registration card shall include instructions for registering to 
        vote.  
           Sec. 14.  Minnesota Statutes 2000, section 203B.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MILITARY SERVICE; TEMPORARY RESIDENCE 
        OUTSIDE UNITED STATES.] Sections 203B.16 to 203B.27 provide 
        alternative voting procedures for eligible voters who are absent 
        from the precinct where they maintain residence because they are:
           (a) (1) either in the military or the spouses or dependents 
        of individuals serving in the military; or 
           (b) (2) temporarily outside the territorial limits of the 
        United States. 
           Sections 203B.16 to 203B.27 are intended to implement the 
        federal Uniformed and Overseas Citizens Absentee Voting Act, 
        United States Code, title 42, section 1973ff. 
           Sec. 15.  Minnesota Statutes 2000, section 203B.17, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SUBMISSION OF APPLICATION.] (a) An 
        application for absentee ballots for a voter described in 
        section 203B.16 may be submitted in writing or by electronic 
        facsimile device, or by electronic mail upon determination by 
        the secretary of state that security concerns have been 
        adequately addressed.  An application for absentee ballots for a 
        voter described in section 203B.16 may be submitted by that 
        voter or by that voter's parent, spouse, sister, brother, or 
        child over the age of 18 years.  For purposes of an application 
        under this subdivision, a person's social security number, no 
        matter how it is designated, qualifies as the person's military 
        identification number if the person is in the military. 
           (b) An application for a voter described in section 
        203B.16, subdivision 1, shall be submitted to the county auditor 
        of the county where the voter maintains residence. 
           (c) An application for a voter described in section 
        203B.16, subdivision 2, shall be submitted to the county auditor 
        of the county where the voter last maintained residence in 
        Minnesota. 
           (d) An application for absentee ballots for a primary shall 
        also constitute an application for absentee ballots for the any 
        ensuing general or special election conducted during the same 
        calendar year in which the application is received. 
           (e) There shall be no limitation of time for filing and 
        receiving applications for ballots under sections 203B.16 to 
        203B.27.  
           Sec. 16.  Minnesota Statutes 2000, section 204B.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORM OF AFFIDAVIT.] (a) An affidavit of 
        candidacy shall state the name of the office sought and shall 
        state that the candidate:  
           (a) (1) is an eligible voter; 
           (b) (2) has no other affidavit on file as a candidate for 
        any office at the same primary or next ensuing general election, 
        except that a candidate for soil and water conservation district 
        supervisor in a district not located in whole or in part in 
        Anoka, Hennepin, Ramsey, or Washington county, may also have on 
        file an affidavit of candidacy for mayor or council member of a 
        statutory or home rule charter city of not more than 2,500 
        population contained in whole or in part in the soil and water 
        conservation district or for town supervisor in a town of not 
        more than 2,500 population contained in whole or in part in the 
        soil and water conservation district; and 
           (c) (3) is, or will be on assuming the office, 21 years of 
        age or more, and will have maintained residence in the district 
        from which the candidate seeks election for 30 days before the 
        general election. 
           An affidavit of candidacy must include a statement that the 
        candidate's name as written on the affidavit for ballot 
        designation is the candidate's true name or the name by which 
        the candidate is commonly and generally known in the community. 
           An affidavit of candidacy for partisan office shall also 
        state the name of the candidate's political party or political 
        principle, stated in three words or less.  
           (b) This subdivision does not apply to a candidate for 
        president or vice-president of the United States. 
           Sec. 17.  Minnesota Statutes 2000, section 204B.07, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PETITIONS FOR PRESIDENTIAL ELECTORS.] On 
        petitions nominating presidential electors, the names of the 
        candidates for president and vice-president shall be added to 
        the political party or political principle stated on the 
        petition.  One petition may be filed to nominate a slate of 
        presidential electors equal in number to the number of electors 
        to which the state is entitled.  This subdivision does not apply 
        to candidates for presidential elector nominated by major 
        political parties.  Major party candidates for presidential 
        elector are certified under section 208.03. 
           Sec. 18.  Minnesota Statutes 2000, section 204B.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CANDIDATES IN STATE AND COUNTY GENERAL 
        ELECTIONS.] (a) Except as otherwise provided by this 
        subdivision, affidavits of candidacy and nominating petitions 
        for county, state, and federal offices filled at the state 
        general election shall be filed not more than 70 days nor less 
        than 56 days before the state primary.  The affidavit may be 
        prepared and signed at any time between 60 days before the 
        filing period opens and the last day of the filing period. 
           (b) Notwithstanding other law to the contrary, the 
        affidavit of candidacy must be signed in the presence of a 
        notarial officer or an individual authorized to administer oaths 
        under section 358.10. 
           (c) This provision does not apply to candidates for 
        presidential elector nominated by major political parties.  
        Major party candidates for presidential elector are certified 
        under section 208.03.  Other candidates for presidential 
        electors may file petitions on or before the state primary day.  
        Nominating petitions to fill vacancies in nominations shall be 
        filed as provided in section 204B.13.  No affidavit or petition 
        shall be accepted later than 5:00 p.m. on the last day for 
        filing. 
           (d) Affidavits and petitions for offices to be voted on in 
        only one county shall be filed with the county auditor of that 
        county.  Affidavits and petitions for offices to be voted on in 
        more than one county shall be filed with the secretary of state. 
           Sec. 19.  Minnesota Statutes 2000, section 204B.09, 
        subdivision 3, is amended to read: 
           Subd. 3.  [WRITE-IN CANDIDATES.] (a) A candidate for state 
        or federal office who wants write-in votes for the candidate to 
        be counted must file a written request with the filing office 
        for the office sought no later than the day before the general 
        election.  The filing officer shall provide copies of the form 
        to make the request.  
           (b) A candidate for president of the United States who 
        files a request under this subdivision must include the name of 
        a candidate for vice-president of the United States.  The 
        request must also include the name of at least one candidate for 
        presidential elector.  The total number of names of candidates 
        for presidential elector on the request may not exceed the total 
        number of electoral votes to be cast by Minnesota in the 
        presidential election. 
           (c) A candidate for governor who files a request under this 
        subdivision must include the name of a candidate for lieutenant 
        governor. 
           Sec. 20.  Minnesota Statutes 2000, section 204B.20, is 
        amended to read: 
           204B.20 [ELECTION BOARD; CHAIR HEAD ELECTION JUDGE; 
        DUTIES.] 
           The election judges appointed to serve in an election 
        precinct shall constitute the election board for that precinct.  
        The appointing authority shall designate one of the election 
        judges in each precinct to serve as the chair of the election 
        board head election judge.  The chair head election judge shall 
        assign specific duties to the election judges of that precinct 
        as necessary or convenient to complete forms, obtain signatures, 
        and perform all the other duties required of election judges.  
           Sec. 21.  Minnesota Statutes 2000, section 204B.22, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MINIMUM NUMBER REQUIRED.] (a) A minimum of 
        three election judges shall be appointed for each precinct.  In 
        a combined polling place under section 204B.14, subdivision 2, 
        at least one judge must be appointed from each municipality in 
        the combined polling place, provided that not less than three 
        judges shall be appointed for each combined polling place.  The 
        appointing authorities may appoint election judges for any 
        precinct in addition to the number required by this subdivision 
        including additional election judges to count ballots after 
        voting has ended. 
           (b) An election judge may serve for all or part of election 
        day, at the discretion of the appointing authority, as long as 
        the minimum number of judges required is always present.  The 
        head election judge designated under section 204B.20 must serve 
        for all of election day and be present in the polling place 
        unless another election judge has been designated by the head 
        election judge to perform the functions of the head election 
        judge during any absence. 
           Sec. 22.  Minnesota Statutes 2000, section 204B.22, 
        subdivision 3, is amended to read: 
           Subd. 3.  [MINIMUM NUMBER REQUIRED IN CERTAIN PRECINCTS.] 
        At each state primary or state general election in precincts 
        using lever voting machines or an electronic voting system with 
        marking devices and in which more than 400 votes were cast at 
        the last similar election, the minimum number of election judges 
        is three plus one judge to demonstrate the use of the voting 
        machine or device. 
           Sec. 23.  Minnesota Statutes 2000, section 204B.23, is 
        amended to read: 
           204B.23 [VACANCIES AMONG ELECTION JUDGES.] 
           A vacancy on an election board occurs when any election 
        judge who is a member of that board:  
           (a) Fails to arrive at the polling place within 30 minutes 
        after the time when the polling place is scheduled to open; 
           (b) Becomes unable to perform the duties of the office 
        after assuming those duties; or 
           (c) For any reason fails or refuses to perform the duties 
        of the office as assigned by the chair of the election board 
        head election judge. 
           When a vacancy occurs, the remaining election judges of the 
        precinct shall elect an individual to fill the vacancy subject 
        to the provisions of section 204B.19.  When possible the 
        election judges shall elect individuals who have been trained as 
        election judges pursuant to section 204B.25.  The oath signed by 
        the new election judge shall indicate that the new election 
        judge was elected to fill a vacancy.  The municipal clerk may 
        assign election judges to fill vacancies as they occur. 
           Sec. 24.  Minnesota Statutes 2000, section 204B.27, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [TRANSLATION OF VOTING INSTRUCTIONS.] The 
        secretary of state may develop voting instructions in languages 
        other than English, to be posted and made available in polling 
        places during elections.  The state demographer shall determine 
        and report to the secretary of state the languages that are so 
        common in this state that there is a need for translated voting 
        instructions. 
           Sec. 25.  Minnesota Statutes 2000, section 204B.28, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEETING WITH ELECTION OFFICIALS.] At least 
        12 weeks before each regularly scheduled general election, each 
        county auditor shall conduct a meeting with local election 
        officials to review the procedures for the election.  The county 
        auditor may require the chairs of the election boards head 
        election judges in the county to attend this meeting. 
           Sec. 26.  [204B.48] [VOTING EQUIPMENT GRANT ACCOUNT.] 
           Subdivision 1.  [ACCOUNT CREATED.] A voting equipment grant 
        account is created in the state treasury to provide grants to 
        political subdivisions to purchase precinct based optical scan 
        ballot tabulation equipment.  The equipment must permit the 
        voter to verify and correct any errors on the ballot, including 
        both undervotes and overvotes.  Any grants made by the federal 
        government to the state to improve election administration or 
        equipment must be credited to the account.  
           Subd. 2.  [APPLICATION.] The commissioner of administration 
        may make a grant from the account to a political subdivision 
        only after receiving an application from the political 
        subdivision and a recommendation from the secretary of state 
        concerning the application.  The application must contain the 
        following information: 
           (1) the date the application is submitted; 
           (2) the name of the political subdivision; 
           (3) the name and title of the individual who prepared the 
        application; 
           (4) the type of voting system currently used in each 
        precinct in the political subdivision; 
           (5) if the current system is an optical scan system, the 
        date the system was acquired and at what cost; 
           (6) the total number of registered voters, as of the date 
        of the application, in each precinct in the political 
        subdivision; 
           (7) the total amount of the grant requested; 
           (8) the total amount and source of the political 
        subdivision's money to be used to match a grant from the 
        account; 
           (9) the type of voting system to be acquired with the grant 
        money and whether the voting system will permit individuals with 
        disabilities to cast a secret ballot; 
           (10) the proposed schedule for purchasing and implementing 
        the new voting system and the precincts in which the new voting 
        system would be used; 
           (11) the proposed schedule for training election 
        administrators and election judges to operate the new voting 
        system; 
           (12) a proposed plan to educate voters, the media, and the 
        general public concerning the new voting system; 
           (13) the names and contact information for the individuals 
        and offices of the political subdivision responsible for 
        communications and reporting to the commissioner of 
        administration regarding the administration and implementation 
        of the grant by the political subdivision, authorizing the 
        purchase of voting systems, and implementing the training and 
        education plan for the voting system; 
           (14) whether the political subdivision has previously 
        applied for a grant from the account and the disposition of that 
        application; 
           (15) a certified statement by the political subdivision 
        that the grant will be used only to purchase precinct based 
        optical scan ballot tabulation equipment, that the political 
        subdivision will provide a dollar-for-dollar match that will not 
        come from state or federal money, and that the political 
        subdivision has insufficient resources to purchase the voting 
        system without obtaining a grant from the account. 
           The commissioner of administration must forward a copy of 
        the application to the secretary of state. 
           Subd. 3.  [EVALUATION AND APPROVAL.] In evaluating the 
        application, the commissioner of administration may consider 
        only the information set forth in the application and is not 
        subject to chapter 14.  If the commissioner of administration 
        determines that the application has been fully and properly 
        completed, and that there is a sufficient balance in the account 
        to fund the grant, either in whole or in part, the commissioner, 
        after receiving the recommendation of the secretary of state, 
        may approve the application. 
           Subd. 4.  [PAYMENT.] The commissioner of administration may 
        then pay the grant to the political subdivision after certifying 
        that: 
           (1) the grant will be used only to purchase the kind of 
        ballot tabulation equipment prescribed by subdivision 1, which 
        may include equipment that makes it possible for individuals 
        with disabilities to cast a secret ballot; 
           (2) the political subdivision to receive the grant has 
        insufficient resources available to purchase the equipment; and 
           (3) the recipient of the grant will provide a 
        dollar-for-dollar match, which may not come from state or 
        federal money. 
           Sec. 27.  Minnesota Statutes 2000, section 204C.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCHOOL DISTRICTS; COUNTIES; 
        MUNICIPALITIES; SPECIAL TAXING DISTRICTS.] No special taxing 
        district governing body, school board, county board of 
        commissioners, city council, or town board of supervisors shall 
        conduct a meeting between 6:00 p.m. and 8:00 p.m. on the day 
        that an election is held within the boundaries of the special 
        taxing district, school district, county, city, or town.  As 
        used in this subdivision, "special taxing district" has the 
        meaning given in section 275.066. 
           Sec. 28.  Minnesota Statutes 2000, section 204C.35, is 
        amended to read: 
           204C.35 [LEGISLATIVE AND FEDERAL, STATE, AND JUDICIAL 
        RACES.] 
           Subdivision 1.  [AUTOMATIC RECOUNTS.] (a) In a state 
        primary when the difference between the votes cast for the 
        candidates for nomination to a statewide federal office, state 
        constitutional office, statewide judicial office, congressional 
        office, state legislative office, or to a district judicial 
        office is 100 or less, the difference: 
           (1) is less than ten one-half of one percent of the total 
        number of votes counted for that nomination; or 
           (2) is ten votes or less and the total number of votes cast 
        for the nomination is 400 votes or less; 
        and the difference determines the nomination, the canvassing 
        board with responsibility for declaring the results for that 
        office shall recount the vote.  
           (b) In a state general election when the difference between 
        the votes of a candidate who would otherwise be declared elected 
        to a statewide federal office, state constitutional office, 
        statewide judicial office, congressional office, state 
        legislative office, or to a district judicial office and the 
        votes of any other candidate for that office: 
           (1) is 100 or less than one-half of one percent of the 
        total number of votes counted for that office; or 
           (2) is ten votes or less if the total number of votes cast 
        for the office is 400 votes or less, 
        the canvassing board shall recount the votes. 
           (c) A recount shall must not delay any other part of the 
        canvass.  The results of the recount shall must be certified by 
        the canvassing board as soon as possible.  
           (d) Time for notice of a contest for an office which is 
        recounted pursuant to this section shall begin to run upon 
        certification of the results of the recount by the canvassing 
        board.  
           (e) A losing candidate may waive a recount required 
        pursuant to this section by filing a written notice of waiver 
        with the canvassing board. 
           Subd. 2.  [OPTIONAL RECOUNT.] (a) A losing candidate for 
        nomination or election to a statewide federal office, state 
        constitutional office, statewide judicial office, congressional 
        office, state legislative office, or to a district court 
        judicial office may request a recount in a manner provided in 
        this section at the candidate's own expense when the vote 
        difference is greater than the difference required by this 
        section.  The votes shall be recounted as provided in this 
        section if the candidate files a request during the time for 
        filing notice of contest of the primary or election for which a 
        recount is sought.  
           (b) The requesting candidate shall file with the filing 
        officer a bond, cash, or surety in an amount set by the filing 
        officer for the payment of the recount expenses.  The requesting 
        candidate is responsible for the following expenses:  the 
        compensation of the secretary of state, or designees, and any 
        election judge, municipal clerk, county auditor, administrator, 
        or other personnel who participate in the recount; the costs of 
        computer operation, preparation of ballot counting equipment, 
        necessary supplies and travel related to the recount; the 
        compensation of the appropriate canvassing board and costs of 
        preparing for the canvass of recount results; and any attorney 
        fees incurred in connection with the recount by the governing 
        body responsible for the recount. 
           Sec. 29.  Minnesota Statutes 2000, section 204C.36, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIRED RECOUNTS.] (a) Except as provided 
        in paragraph (b), a losing candidate for nomination or election 
        to a county, municipal, or school district office may request a 
        recount of the votes cast for the nomination or election to that 
        office if the difference between the vote cast for that 
        candidate and for a winning candidate for nomination or election 
        is:  
           (a) Five votes or less when the total vote cast for 
        nomination or election to that office is 100 votes or less; 
           (b) Ten votes or less when the total vote cast for 
        nomination or election to that office is more than 100 but not 
        more than 500 votes; 
           (c) Twenty votes or less when the total vote cast for 
        nomination or election to that office is more than 500 but not 
        more than 2,000 votes; 
           (d) One percent of the votes or less when the total vote 
        cast for nomination or election to that office is more than 
        2,000 but less than 10,000 votes; or 
           (e) One hundred votes or less when the total vote cast for 
        nomination or election to that office is 10,000 votes or 
        more. less than one-half of one percent of the total votes 
        counted for that office.  In case of offices where two or more 
        seats are being filled from among all the candidates for the 
        office, the one-half of one percent difference is between the 
        elected candidate with the fewest votes and the candidate with 
        the most votes from among the candidates who were not elected.  
           (b) A losing candidate for nomination or election to a 
        county, municipal, or school district office may request a 
        recount of the votes cast for nomination or election to that 
        office if the difference between the vote cast for that 
        candidate and for a winning candidate for nomination or election 
        is ten votes or less, and the total number of votes cast for the 
        nomination or election of all candidates is no more than 400.  
        In cases of offices where two or more seats are being filled 
        from among all the candidates for the office, the ten vote 
        difference is between the elected candidate with the fewest 
        votes and the candidate with the most votes from among the 
        candidates who were not elected. 
           (c) Candidates for county offices shall file a written 
        request for the recount with the county auditor.  Candidates for 
        municipal or school district offices shall file a written 
        request with the municipal or school district clerk as 
        appropriate.  All requests shall be filed during the time for 
        notice of contest of the primary or election for which a recount 
        is sought.  
           (d) Upon receipt of a request made pursuant to this 
        section, the county auditor shall recount the votes for a county 
        office at the expense of the county, the governing body of the 
        municipality shall recount the votes for a municipal office at 
        the expense of the municipality, and the school board of the 
        school district shall recount the votes for a school district 
        office at the expense of the school district.  
           Sec. 30.  Minnesota Statutes 2000, section 204C.36, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DISCRETIONARY BALLOT QUESTION RECOUNTS.] A 
        recount may be conducted for a ballot question when the 
        difference between the votes for and the votes against the 
        question is less than or equal to the difference provided in 
        subdivision 1, clauses (a) to (e).  A recount may be requested 
        by any person eligible to vote on the ballot question.  A 
        written request for a recount must be filed with the filing 
        officer of the county, municipality, or school district placing 
        the question on the ballot and must be accompanied by a petition 
        containing the signatures of 25 voters eligible to vote on the 
        question.  If the difference between the votes for and the votes 
        against the question is greater than the difference provided in 
        subdivision 1, clauses (a) to (e), the person requesting the 
        recount shall also file with the filing officer of the county, 
        municipality, or school district a bond, cash, or surety in an 
        amount set by the appropriate governing body for the payment of 
        recount expenses.  The written request, petition, and any bond, 
        cash, or surety required must be filed during the time for 
        notice of contest for the election for which the recount is 
        requested.  
           Sec. 31.  Minnesota Statutes 2000, section 204D.04, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INSTRUCTIONS TO PRINTER; PRINTER'S BOND.] (a) 
        The official charged with the preparation and distribution of 
        the ballots shall prepare instructions to the printer for 
        rotation of the names of candidates and for layout of the ballot.
           (b) Except as provided in paragraph (c), the instructions 
        shall be approved by the legal advisor of the official before 
        delivery to the printer. 
           (c) The legal advisor of a town official is only required 
        to approve instructions regarding the rotation of the names of 
        candidates on the ballot. 
           (d) Before a contract exceeding $1,000 is awarded for 
        printing ballots, the printer shall furnish a sufficient bond, 
        letter of credit, or certified check, acceptable to the official 
        responsible for printing the ballots, conditioned on printing 
        the ballots in conformity with the Minnesota Election Law and 
        the instructions delivered.  The official responsible for 
        printing the ballots shall set the amount of the bond, letter of 
        credit, or certified check in an amount equal to the value of 
        the purchase.  
           Sec. 32.  Minnesota Statutes 2000, section 204D.09, is 
        amended to read: 
           204D.09 [EXAMPLE BALLOTS; SAMPLE PRIMARY BALLOTS.] 
           Subdivision 1.  [EXAMPLE BALLOT.] (a) No later than June 1 
        of each year, the secretary of state shall supply each auditor 
        with a copy of an example ballot.  The example ballot must 
        illustrate the format required for the ballots used in the 
        primary and general elections that year. 
           (b) The county auditor shall distribute copies of the 
        example ballot to municipal and school district clerks in 
        municipalities and school districts holding elections that 
        year.  The official ballot must conform in all respects to the 
        example ballot. 
           Subd. 2.  [SAMPLE BALLOT.] At least two weeks before the 
        state primary the county auditor shall prepare a sample state 
        partisan primary ballot and a sample state and county 
        nonpartisan primary ballot for public inspection.  The names of 
        all of the candidates to be voted for in the county shall be 
        placed on the sample ballots, with the names of the candidates 
        for each office arranged alphabetically according to the 
        surname.  Only one sample state partisan primary ballot and one 
        sample state and county nonpartisan ballot shall be prepared for 
        any county.  The county auditor shall post the sample ballots in 
        a conspicuous place in the auditor's office and shall cause them 
        to be published at least one week before the state primary in at 
        least one newspaper of general circulation in the county. 
           Sec. 33.  Minnesota Statutes 2000, section 204D.11, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SPECIAL FEDERAL WHITE BALLOT.] (a) The names of 
        all candidates for the offices of president and vice-president 
        of the United States and senator and representative in Congress 
        shall be placed on a ballot printed on white paper which shall 
        be known as the "special federal white ballot." 
           (b) This ballot shall be prepared by the county auditor in 
        the same manner as the white ballot and shall be subject to the 
        rules adopted by the secretary of state pursuant to subdivision 
        1.  This ballot must be prepared and furnished in accordance 
        with the federal Uniformed and Overseas Citizens Absentee Voting 
        Act, United States Code, title 42, section 1973ff. 
           (c) The special federal white ballot shall be the only 
        ballot sent to citizens of the United States who are eligible to 
        vote by absentee ballot for federal candidates in Minnesota. 
           Sec. 34.  Minnesota Statutes 2000, section 204D.24, 
        subdivision 2, is amended to read: 
           Subd. 2.  [VOTER REGISTRATION.] An individual may register 
        to vote at a special primary or special election at any time 
        before the day that the polling place rosters for the special 
        primary or special election are prepared by the secretary of 
        state.  The secretary of state shall provide the county auditors 
        with notice of this date at least seven days before the printing 
        of the rosters.  This subdivision does not apply to a special 
        election held on the same day as the presidential primary, state 
        primary, state general election, or the regularly scheduled 
        primary or general election of a municipality, school district, 
        or special district.  
           Sec. 35.  Minnesota Statutes 2000, section 205.13, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [FILING PERIOD.] An affidavit of candidacy for a 
        town office to be elected in March must be filed not more than 
        eight weeks nor less than six weeks before the town election.  
        In municipalities nominating candidates at a municipal primary, 
        an affidavit of candidacy for a city office or town office voted 
        on in November must be filed not more than 70 days nor less than 
        56 days before the first Tuesday after the second Monday in 
        September preceding the municipal general election.  In all 
        other municipalities, an affidavit of candidacy must be filed 
        not more than 70 days and not less than 56 days before the 
        municipal general election. 
           Sec. 36.  Minnesota Statutes 2000, section 205.17, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [EXAMPLE BALLOT.] No later than 30 days before 
        absentee ballots must be prepared and delivered under section 
        204B.35 for use in a town general election conducted in March, 
        the secretary of state shall supply each town clerk in a town 
        conducting a March general election with a copy of an example 
        ballot.  The example ballot must illustrate the format required 
        for the ballots used in the general election that year. 
           Sec. 37.  Minnesota Statutes 2000, section 205.185, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CANVASS OF RETURNS, CERTIFICATE OF ELECTION, 
        BALLOTS, DISPOSITION.] (a) Within seven days after an election, 
        the governing body of a city conducting any election or the 
        governing body of a town conducting the general election in 
        November shall canvass the returns and declare the results of 
        the election.  The governing body of a town conducting the 
        general election in March shall canvass the returns and declare 
        the results of the election within two days after an election.  
           (b) After the time for contesting elections has passed, the 
        municipal clerk shall issue a certificate of election to each 
        successful candidate.  In case of a contest, the certificate 
        shall not be issued until the outcome of the contest has been 
        determined by the proper court.  
           (c) In case of a tie vote, the governing body shall 
        determine the result by lot. The clerk shall certify the results 
        of the election to the county auditor, and the clerk shall be 
        the final custodian of the ballots and the returns of the 
        election. 
           Sec. 38.  Minnesota Statutes 2000, section 206.81, is 
        amended to read: 
           206.81 [ELECTRONIC VOTING SYSTEMS; EXPERIMENTAL USE.] 
           (a) The secretary of state may license an electronic voting 
        system for experimental use at an election prior to its approval 
        for general use. 
           (b) The secretary of state must license one or more 
        touch-sensitive direct recording electronic voting systems for 
        experimental use at an election before their approval for 
        general use and may impose restrictions on their use.  At least 
        one voting system licensed under this paragraph must permit 
        sighted persons to vote and at least one system must permit a 
        blind or visually impaired voter to cast a ballot independently 
        and privately. 
           (c) Experimental use must be observed by the secretary of 
        state or the secretary's designee and the results observed must 
        be considered at any subsequent proceedings for approval for 
        general use. 
           (d) The secretary of state may adopt rules consistent with 
        sections 206.55 to 206.90 relating to experimental use.  The 
        extent of experimental use must be determined by the secretary 
        of state. 
           Sec. 39.  Minnesota Statutes 2000, section 211A.02, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CONGRESSIONAL CANDIDATES.] Candidates for 
        election to the United States House of Representatives or Senate 
        and any political committees raising money and making 
        disbursements exclusively on behalf of any one of those 
        candidates may file copies of their financial disclosures 
        required by federal law in lieu of the financial statement 
        required by this section.  A candidate or committee whose report 
        is published on the Federal Election Commission Web site has 
        complied with the filing requirements of this section. 
           Sec. 40.  [211B.205] [PARTICIPATION IN PUBLIC PARADES.] 
           If a public parade allows candidates, a candidate must be 
        allowed to participate for a fee that is not greater than the 
        amount that is charged to other units participating in the 
        parade. 
           Sec. 41.  Minnesota Statutes 2000, section 358.10, is 
        amended to read: 
           358.10 [OFFICIALS MAY ADMINISTER, WHEN.] 
           (a) All persons holding office under any law of this state, 
        or under the charter or ordinances of any municipal corporation 
        thereof, including judges and clerks of election, and all 
        committee members, commissioners, trustees, referees, 
        appraisers, assessors, and all others authorized or required by 
        law to act or report upon any matter of fact, shall have the 
        power to administer such oaths as they may deem necessary to the 
        proper discharge of their respective duties.  
           (b) Any employee of the secretary of state designated by 
        the secretary of state has the power to administer oaths to an 
        individual who wishes to file with the secretary of state an 
        affidavit of candidacy, nominating petition, declaration of 
        intent to be a write-in candidate, or any other document 
        relating to the conduct of elections. 
           Sec. 42.  Minnesota Statutes 2000, section 367.03, 
        subdivision 6, is amended to read: 
           Subd. 6.  [VACANCIES.] (a) When a vacancy occurs in a town 
        office, the town board shall fill the vacancy by appointment.  
        Except as provided in paragraph (b), the person appointed shall 
        hold office until the next annual town election, when a 
        successor shall be elected for the unexpired term.  
           (b) When a vacancy occurs in a town office: 
           (1) with more than one year remaining in the term; and 
           (2) on or after the 14th day before the first day to file 
        an affidavit of candidacy for the town election; 
        the vacancy must be filled by appointment.  The person appointed 
        serves until the next annual town election following the 
        election for which affidavits of candidacy are to be filed, when 
        a successor shall be elected for the unexpired term. 
           (c) A vacancy in the office of supervisor shall must be 
        filled by an appointment committee comprised of the remaining 
        supervisors and the town clerk until the next annual town 
        election, when a successor shall be elected for the unexpired 
        term.  
           (d) Any person appointed to fill the vacancy in the office 
        of supervisor must, upon assuming the office, be an eligible 
        voter, be 21 years of age, and have resided in the town for at 
        least 30 days.  
           (e) When, because of a vacancy, more than one supervisor is 
        to be chosen at the same election, candidates for the offices of 
        supervisor shall file for one of the specific terms being filled.
           (f) Law enforcement vacancies shall must be filled by 
        appointment by the town board. 
           Sec. 43.  [APPLICATION OF NEW DEFINITIONS OF MAJOR AND 
        MINOR POLITICAL PARTY.] 
           Notwithstanding the amendments in this article to Minnesota 
        Statutes, section 200.02, subdivisions 7 and 23: 
           (1) a political party that qualified as a major political 
        party as a result of the votes cast for candidates of that party 
        on November 7, 2000, remains a major political party through 
        December 31, 2002, and may retain its status after that date by 
        complying with Minnesota Statutes, section 200.02, subdivision 
        7; 
           (2) a major political party that ceased to qualify as a 
        major political party as a result of votes cast for candidates 
        of that party on November 7, 2000, does not become a major 
        political party as a result of this article until it qualifies 
        at a subsequent state general election; 
           (3) a minor political party that ceased to qualify as a 
        minor political party under Minnesota Statutes, section 200.02, 
        subdivision 23, or as a political party under Minnesota 
        Statutes, section 200.02, subdivision 6, as a result of the 
        votes cast for candidates of that party on November 7, 2000, 
        does not become a minor political party or a political party as 
        a result of this article until it qualifies at a subsequent 
        state general election. 
           Sec. 44.  [REPEALER.] 
           (a) Minnesota Statutes 2000, sections 204B.06, subdivision 
        1a, and 204C.15, subdivision 2a, are repealed. 
           (b) Minnesota Rules, part 8250.1400, is repealed. 
           Sec. 45.  [EFFECTIVE DATE.] 
           Sections 1 to 25 and 27 to 44 are effective January 1, 2002.
        Section 26 is effective July 1, 2001. 
           Presented to the governor June 30, 2001 
           Signed by the governor June 30, 2001, 8:50 p.m.

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