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Key: (1) language to be deleted (2) new language

                            CHAPTER 156-H.F.No. 1481 
                  An act relating to government operations; 
                  appropriating money for the general legislative and 
                  administrative expenses of state government; 
                  regulating state and local government operations; 
                  modifying provisions related to public employment; 
                  ratifying certain labor agreements and compensation 
                  plans; regulating elections and campaign finance; 
                  regulating Minneapolis teacher pensions; modifying 
                  provisions related to the military and veterans; 
                  authorizing rulemaking; amending Minnesota Statutes 
                  2004, sections 10A.01, subdivisions 5, 26, 35; 
                  10A.025, by adding a subdivision; 10A.071, subdivision 
                  3; 10A.08; 10A.20, subdivision 5; 10A.27, subdivision 
                  1; 10A.28, subdivision 2; 10A.31, subdivisions 4, 5; 
                  11A.24, subdivision 6; 13.635, by adding a 
                  subdivision; 14.19; 15.054; 15.06, by adding a 
                  subdivision; 16A.103, by adding a subdivision; 
                  16A.1286, subdivision 3; 16A.151, subdivision 2; 
                  16A.152, subdivision 2; 16A.1522, subdivision 1; 
                  16A.281; 16B.04, subdivision 2; 16B.33, subdivision 4; 
                  16B.48, subdivisions 4, 5; 16C.10, subdivision 7; 
                  16C.144; 16C.16, subdivision 1; 16C.26, subdivisions 
                  3, 4; 16C.28, subdivision 2; 16E.01, subdivisions 1, 
                  3; 16E.02; 16E.03, subdivisions 1, 2, 3, 7; 16E.04; 
                  16E.0465, subdivisions 1, 2; 16E.055; 16E.07, 
                  subdivision 8; 43A.23, subdivision 1; 190.16, by 
                  adding a subdivision; 192.19; 192.261, subdivision 2; 
                  192.501, subdivision 2; 193.29, subdivision 3; 193.30; 
                  193.31; 197.608, subdivision 5; 200.02, subdivisions 
                  7, 23, by adding a subdivision; 201.014, subdivision 
                  2; 201.061, subdivision 3; 201.071, subdivision 1; 
                  201.091, subdivisions 4, 5; 201.15; 203B.01, 
                  subdivision 3; 203B.04, subdivisions 1, 4, by adding a 
                  subdivision; 203B.07, subdivision 2; 203B.11, 
                  subdivision 1; 203B.12, subdivision 2; 203B.20; 
                  203B.21, subdivisions 1, 3; 203B.24, subdivision 1; 
                  204B.06, subdivisions 1, 4; 204B.10, subdivision 6; 
                  204B.14, subdivision 2; 204B.16, subdivisions 1, 5; 
                  204B.18, subdivision 1; 204B.24; 204B.27, subdivision 
                  1; 204C.05, subdivision 1a; 204C.06, subdivision 2; 
                  204C.07, subdivision 4, by adding a subdivision; 
                  204C.08, subdivision 1a; 204C.10; 204C.12, subdivision 
                  2; 204C.24, subdivision 1; 204C.28, subdivision 1; 
                  204C.50, subdivisions 1, 2; 204D.03, by adding a 
                  subdivision; 204D.14, subdivision 3; 204D.27, 
                  subdivision 5; 205.175, subdivision 2; 205A.09, 
                  subdivision 1; 206.57, subdivision 5; 208.03; 208.04, 
                  subdivision 1; 208.05; 208.06; 208.07; 208.08; 
                  211B.13, subdivision 1; 240A.03, subdivision 5, by 
                  adding a subdivision; 299C.65, subdivisions 1, 2; 
                  349A.10, subdivision 3; 359.01, by adding a 
                  subdivision; 383B.151; 403.36, subdivision 1; 447.32, 
                  subdivision 4; 471.895, subdivision 3; 471.975; 
                  507.093; 507.24, subdivision 2; 524.5-310; Laws 1998, 
                  chapter 404, section 15, subdivision 2, as amended; 
                  Laws 2000, chapter 461, article 4, section 4, as 
                  amended; proposing coding for new law in Minnesota 
                  Statutes, chapters 5; 6; 8; 10; 14; 15; 16B; 16C; 16E; 
                  43A; 168; 190; 298; 471; 507; repealing Minnesota 
                  Statutes 2004, sections 3.9222; 16A.151, subdivision 
                  5; 16A.30; 16B.48, subdivision 3; 16B.52; 16E.0465, 
                  subdivision 3; 43A.11, subdivision 2; 197.455, 
                  subdivision 3; 204C.50, subdivision 7; 471.68, 
                  subdivision 3; Minnesota Rules, parts 4501.0300, 
                  subparts 1, 4; 4501.0500, subpart 4; 4501.0600; 
                  4503.0200, subpart 4; 4503.0300, subpart 2; 4503.0400, 
                  subpart 2; 4503.0500, subpart 9; 4503.0800, subpart 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1
                        STATE GOVERNMENT APPROPRIATIONS
        Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another fund named, to 
        the agencies and for the purposes specified in this article, to 
        be available for the fiscal years indicated for each purpose.  
        The figures "2005," "2006," and "2007," where used in this 
        article, mean that the appropriation or appropriations listed 
        under them are available for the year ending June 30, 2005, June 
        30, 2006, or June 30, 2007, respectively.  
                                SUMMARY BY FUND
                                  2006          2007           TOTAL
        General            $  295,666,000 $  301,319,000 $  596,985,000
        Health Care 
        Access                  1,782,000      1,782,000      3,564,000
        State Government 
        Special Revenue         2,178,000      2,194,000      4,372,000
        Environmental             436,000        436,000        872,000
        Remediation               484,000        484,000        968,000
        Special Revenue         4,395,000      5,541,000      9,936,000
        Highway User Tax 
        Distribution            2,097,000      2,097,000      4,194,000
        Workers' 
        Compensation            7,552,000      7,458,000     15,010,000
        TOTAL              $  314,590,000 $  321,311,000 $  635,901,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2006         2007 
        Sec. 2.  LEGISLATURE 
        Subdivision 1.  Total  
        Appropriation                        $54,272,000    $62,042,000
                      Summary by Fund
        General              54,144,000    61,914,000
        Health Care Access      128,000       128,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Senate 
             17,965,000    20,654,000
        Subd. 3.  House of Representatives 
             24,177,000    27,790,000 
        During the biennium ending June 30, 
        2007, any revenues received by the 
        house of representatives from 
        sponsorship notices in broadcast or 
        print media are appropriated to the 
        house of representatives. 
        Subd. 4.  Legislative 
        Coordinating Commission    
             12,130,000    13,598,000
                      Summary by Fund
        General              12,002,000    13,470,000
        Health Care Access      128,000       128,000
        $360,000 the first year and $360,000 
        the second year are for public 
        information television, Internet, 
        Intranet, and other transmission of 
        legislative activities.  At least 
        one-half must go for programming to be 
        broadcast and transmitted to rural 
        Minnesota. 
        On July 1, 2005, the commissioner of 
        finance shall transfer $1,764,000 of 
        unspent fees from the special revenue 
        fund dedicated for the Electronic Real 
        Estate Recording Task Force to the 
        general fund. 
        On July 1, 2005, the commissioner of 
        finance shall cancel $2,500,000 of the 
        legislature's accumulated carryforward 
        account balances, divided equally 
        between the senate and house balances, 
        to the general fund.  
        $4,645,000 the first year and 
        $5,143,000 the second year are for the 
        Office of the Revisor of Statutes. 
        $1,016,000 the first year and 
        $1,154,000 the second year are for the 
        Legislative Reference Library. 
        $4,530,000 the first year and 
        $5,206,000 the second year are for the 
        Office of the Legislative Auditor. 
        During the biennium ending June 30, 
        2007, the commission shall study and 
        report to the legislature on all 
        matters relating to the economic status 
        of women in Minnesota, including:  (1) 
        the contributions of women to the 
        economy; (2) economic security of 
        homemakers and women in the labor 
        force; (3) opportunities for education 
        and vocational training; (4) employment 
        opportunities; (5) women's access to 
        benefits and services provided to 
        citizens of this state; and (6) laws 
        and business practices constituting 
        barriers to the full participation by 
        women in the economy.  The commission 
        shall also study the adequacy of 
        programs and services relating to 
        families in Minnesota.  The commission 
        shall communicate its findings and make 
        recommendations to the legislature on 
        an ongoing basis. 
        During the biennium ending June 30, 
        2007, the Legislative Coordinating 
        Commission must coordinate efforts of 
        the senate, house of representatives, 
        and the state chief information officer 
        to provide wireless Internet service in 
        the Capitol and the State Office 
        Building.  The commission may accept 
        nonstate funds to support the 
        installation and support of wireless 
        Internet access, which are appropriated 
        to the commission for this purpose.  
        Services provided by the chief 
        information officer under this 
        provision are available to the public.  
        Any provision of wireless Internet 
        access services under this provision 
        must include appropriate security 
        measures, and be coordinated with 
        overall state telecommunications and 
        security strategies and architectures. 
        Sec. 3.  GOVERNOR AND 
        LIEUTENANT GOVERNOR                    3,584,000      3,584,000
        This appropriation is to fund the 
        offices of the governor and lieutenant 
        governor.  
        $19,000 the first year and $19,000 the 
        second year are for necessary expenses 
        in the normal performance of the 
        governor's and lieutenant governor's 
        duties for which no other reimbursement 
        is provided. 
        By September 1 of each year, the 
        commissioner of finance shall report to 
        the chairs of the senate Governmental 
        Operations Budget Division and the 
        house State Government Finance Division 
        any personnel costs incurred by the 
        Office of the Governor and Lieutenant 
        Governor that were supported by 
        appropriations to other agencies during 
        the previous fiscal year.  The Office 
        of the Governor shall inform the chairs 
        of the divisions before initiating any 
        interagency agreements. 
        Sec. 4.  STATE AUDITOR                 8,273,000      8,273,000
        Sec. 5.  ATTORNEY GENERAL             25,152,000     25,192,000
                      Summary by Fund
        General              22,745,000    22,769,000
        State Government
        Special Revenue       1,778,000     1,794,000
        Environmental           145,000       145,000 
        Remediation             484,000       484,000 
        Sec. 6.  SECRETARY OF STATE            5,905,000      6,077,000
        $25,000 each year is for the use of the 
        task force established in Minnesota 
        Statutes, section 507.094, for the 
        purposes in that section.  $25,000 is 
        included in the base budget for fiscal 
        year 2008 for this purpose. 
        Sec. 7.  CAMPAIGN FINANCE AND 
        PUBLIC DISCLOSURE BOARD                  694,000        694,000
        Sec. 8.  INVESTMENT BOARD              2,167,000      2,167,000
        Sec. 9.  OFFICE OF ENTERPRISE
        TECHNOLOGY                             1,803,000      1,803,000
        Sec. 10.  ADMINISTRATIVE HEARINGS       7,714,000      7,620,000
                      Summary by Fund
        General                 262,000       262,000
        Workers'
        Compensation          7,452,000     7,358,000
        $203,000 the first year and $109,000 
        the second year are from the workers' 
        compensation fund for technology 
        improvements.  The base appropriation 
        for these improvements is $158,000 in 
        fiscal year 2008 and $165,000 in fiscal 
        year 2009. 
        For fiscal years 2006 and 2007, the 
        Administrative Law Division of the 
        Office of Administrative Hearings shall 
        charge the fees approved by the 
        commissioner of finance under Minnesota 
        Statutes, section 16A.126. 
        Sec. 11.  ADMINISTRATION 
        Subdivision 1.  Total      
        Appropriation                         25,558,000     20,375,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  State Facilities Services
             16,070,000     10,946,000
        $5,124,000 the first year is for 
        onetime funding of agency relocation 
        expenses.  The Department of Human 
        Services will obtain federal 
        reimbursement for associated relocation 
        expenses.  This amount, estimated to be 
        $1,870,000, will be deposited in the 
        general fund. 
        $7,888,000 the first year and 
        $7,888,000 the second year are for 
        office space costs of the legislature 
        and veterans organizations, for 
        ceremonial space, and for statutorily 
        free space.  
        $2,000,000 of the balance in the state 
        building code account in the state 
        government special revenue fund is 
        canceled to the general fund. 
        $1,950,000 the first year and 
        $1,950,000 the second year of the 
        balance in the facilities repair and 
        replacement account in the special 
        revenue fund is canceled to the general 
        fund.  This is a onetime cancellation.  
        Subd. 3.  State and Community Services
              2,921,000     3,012,000
        $714,000 the first year and $805,000 
        the second year are for the Land 
        Management Information Center.  The 
        base appropriation is $258,000 in 
        fiscal year 2008 and $258,000 in fiscal 
        year 2009. 
        $196,000 the first year and $196,000 
        the second year are for the Office of 
        the State Archaeologist. 
        Subd. 4.  Administrative Management Services
             4,712,000      4,562,000 
        $150,000 the first year is for a 
        onetime grant to Assistive Technology 
        of Minnesota to administer a microloan 
        program to support purchase of 
        equipment and devices for people with 
        disabilities and their families and 
        employers, and to develop the Access to 
        Telework program. This appropriation is 
        available until June 30, 2007. 
        $74,000 the first year and $74,000 the 
        second year are for the Developmental 
        Disabilities Council. 
        Subd. 5.  Public Broadcasting
              1,855,000     1,855,000
        $963,000 the first year and $963,000 
        the second year are for matching grants 
        for public television.  
        $398,000 the first year and $398,000 
        the second year are for public 
        television equipment grants.  
        Equipment or matching grant allocations 
        shall be made after considering the 
        recommendations of the Minnesota Public 
        Television Association. 
        $17,000 the first year and $17,000 the 
        second year are for grants to the Twin 
        Cities regional cable channel. 
        $287,000 the first year and $287,000 
        the second year are for community 
        service grants to public educational 
        radio stations.  The grants must be 
        allocated after considering the 
        recommendations of the Association of 
        Minnesota Public Educational Radio 
        Stations under Minnesota Statutes, 
        section 129D.14. 
        $190,000 the first year and $190,000 
        the second year are for equipment 
        grants to Minnesota Public Radio, Inc.  
        This appropriation is contingent on 
        Minnesota Public Radio, Inc. making 
        public a list containing the position 
        and salary of each employee and single 
        individual providing personal services 
        under a contract who is paid more than 
        $100,000 per year by Minnesota Public 
        Radio, Inc. or a related organization 
        as defined in Minnesota Statutes, 
        section 317A.011, subdivision 18. 
        Any unencumbered balance remaining the 
        first year for grants to public 
        television or radio stations does not 
        cancel and is available for the second 
        year. 
        Sec. 12.  CAPITOL AREA ARCHITECTURAL 
        AND PLANNING BOARD                       269,000        270,000
        During the biennium ending June 30, 
        2007, money received by the board from 
        public agencies, as provided by 
        Minnesota Statutes, section 15B.17, 
        subdivision 1, is appropriated to the 
        board. 
        Sec. 13.  FINANCE 
        Subdivision 1.  Total 
        Appropriation                         14,808,000     14,808,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        No later than June 30, 2006, and June 
        30, 2007, the commissioner of finance, 
        in consultation with the commissioner 
        of administration, must determine the 
        savings attributable to the "Drive to 
        Excellence" in fiscal year 2006 and 
        fiscal year 2007, respectively.  The 
        savings are estimated to be $1,000,000 
        for the biennium.  The commissioner 
        must deposit the amount determined for 
        each year in the general fund. 
        Subd. 2.  State Financial Management 
             8,447,000      8,447,000
        Subd. 3.  Information and 
        Management Services 
             6,361,000      6,361,000
        Up to $3,000,000 of the amounts billed 
        to state agencies under Minnesota 
        Statutes, section 16A.1286, for the 
        biennium ending June 30, 2005, and not 
        needed to provide statewide system 
        services during that time, must be 
        carried forward from fiscal year 2005 
        to fiscal year 2006.  On July 1, 2005, 
        the commissioner shall transfer that 
        amount to the general fund. 
        Sec. 14.  EMPLOYEE RELATIONS           5,667,000      5,556,000 
        Sec. 15.  REVENUE 
        Subdivision 1.  Total  
        Appropriation                        101,644,000    105,442,000
                      Summary by Fund
        General              97,602,000   101,400,000
        Health Care Access    1,654,000     1,654,000
        Highway User 
        Tax Distribution      2,097,000     2,097,000
        Environmental           291,000       291,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Tax System Management
            84,712,000     87,351,000
                      Summary by Fund
        General              80,670,000    83,309,000
        Health Care Access    1,654,000     1,654,000
        Highway User 
        Tax Distribution      2,097,000     2,097,000
        Environmental           291,000       291,000
        $6,311,000 the first year and 
        $7,950,000 the second year are for 
        additional activities to identify and 
        collect tax liabilities from 
        individuals and businesses that 
        currently do not pay all taxes owed.  
        This initiative is expected to result 
        in new general fund revenues of 
        $49,400,000 for the biennium ending 
        June 30, 2007. 
        The department must report to the 
        chairs of the house of representatives 
        Ways and Means and senate Finance 
        Committees by March 1, 2006, and 
        January 15, 2007, on the following 
        performance indicators: 
        (1) the number of corporations 
        noncompliant with the corporate tax 
        system each year and the percentage and 
        dollar amounts of valid tax liabilities 
        collected; 
        (2) the number of businesses 
        noncompliant with the sales and use tax 
        system and the percentage and dollar 
        amount of the valid tax liabilities 
        collected; and 
        (3) the number of individual 
        noncompliant cases resolved and the 
        percentage and dollar amounts of valid 
        tax liabilities collected. 
        The reports must also identify 
        base-level expenditures and staff 
        positions related to compliance and 
        audit activities, including baseline 
        information as of January 1, 2004.  The 
        information must be provided at the 
        budget activity level. 
        $30,000 the first year and $30,000 the 
        second year are for preparation of the 
        income tax sample. 
        Subd. 3.  Accounts Receivable Management
            16,932,000     18,091,000
        $1,208,000 the first year and 
        $2,367,000 the second year are for 
        additional activities to identify and 
        collect tax liabilities from 
        individuals and businesses that 
        currently do not pay all taxes owed.  
        This initiative is expected to result 
        in new general revenues of $41,300,000 
        for the biennium ending June 30, 2007. 
        The commissioner, in consultation with 
        other state agencies and local units of 
        government, shall develop 
        recommendations for:  (1) consolidating 
        and coordinating the collection of debt 
        owed to governmental units; (2) 
        eliminating the fragmentation of 
        contacts from government agencies with 
        debtors owing such debts; (3) reducing 
        the cost of collecting debt owed to 
        governmental units; and (4) the 
        collection of substantially larger 
        portions of the debt owed to all 
        government units. 
        The commissioner shall report the 
        recommendations to the governor and the 
        chairs of the legislative committees 
        with jurisdiction over the department 
        by February 15, 2006. 
        Sec. 16.  MILITARY AFFAIRS  
        Subdivision 1.  Total 
        Appropriation                         17,922,000     18,439,000
                      Summary by Fund
        General              17,584,000    17,584,000
        Special Revenue         338,000       855,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Maintenance of Training 
        Facilities 
              5,590,000      5,590,000 
        Subd. 3.  General Support
              1,787,000      1,787,000 
        $30,000 the first year and $30,000 the 
        second year are for the operation and 
        staffing of the Minnesota National 
        Guard Youth Camp at Camp Ripley.  This 
        is a onetime appropriation and must be 
        matched by nonstate sources. 
        Subd. 4.  Enlistment Incentives
             10,207,000     10,207,000 
        $3,850,000 each year is to provide the 
        additional amount needed for full 
        funding of the tuition reimbursement 
        program in Minnesota Statutes, section 
        192.501, subdivision 2. 
        $1,500,000 each year is for 
        reenlistment bonuses under Minnesota 
        Statutes, section 192.501, subdivision 
        1b. 
        $338,000 the first year and $855,000 
        the second year are from the account 
        established in new Minnesota Statutes, 
        section 190.19, for grants under that 
        section. 
        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. 
        Sec. 17.  VETERANS AFFAIRS             4,706,000      4,970,000
                      Summary by Fund
        General               4,369,000     4,115,000
        Special Revenue         337,000       855,000
        $357,000 the first year and $103,000 
        the second year are from the general 
        fund, and $337,000 the first year and 
        $855,000 the second year are from the 
        account established in Minnesota 
        Statutes, section 190.19, for:  (1) 
        veterans' services provided by Veterans 
        of Foreign Wars, the Military Order of 
        the Purple Heart, Disabled American 
        Veterans, and the Vietnam Veterans of 
        America; (2) grants for veterans' 
        services to the Vinland Center and the 
        Minnesota Assistance Council for 
        Veterans; and (3) an outreach and 
        assistance initiative for underserved 
        veterans.  The general fund portion of 
        this appropriation must first be used 
        for the base budget funding for the 
        organizations listed in clause (1). 
        Any balance in the first year does not 
        cancel but is available in the second 
        year. 
        In each fiscal year, the commissioner 
        of finance must distribute the amounts 
        received in the account established in 
        Minnesota Statutes, section 190.19, so 
        that the appropriations from the 
        account are divided equally between 
        this section and section 16, 
        subdivision 4. 
        Sec. 18.  GAMBLING CONTROL             2,800,000      2,800,000
        These appropriations are from the 
        lawful gambling regulation account in 
        the special revenue fund. 
        Sec. 19.  RACING COMMISSION              674,000        835,000
        (a) These appropriations are from the 
        racing and card playing regulation 
        account in the special revenue fund.  
        (b) $253,000 for the fiscal year ending 
        June 30, 2006, and $414,000 for the 
        fiscal year ending June 30, 2007, are 
        from the racing and card playing 
        regulation account in the special 
        revenue fund.  If the commission does 
        not spend all of the revenue from the 
        interim license fee authorized by Laws 
        2003, First Special Session chapter 1, 
        article 2, section 69, in fiscal year 
        2005 or fiscal year 2006, the 
        commission must reduce the amount of 
        fees charged to the feepayers in fiscal 
        year 2007 by the amount unspent.  The 
        Racing Commission must file monthly 
        expenditure reports with the 
        commissioner of finance for money spent 
        from the appropriation in this 
        paragraph. 
        (c) The racing commission may not hire 
        new employees or enter into new 
        contracts with money subject to 
        paragraph (b) before resolution of the 
        petition for judicial review filed by 
        the Columbus Concerned Citizens Group. 
        Sec. 20.  STATE LOTTERY
        Notwithstanding Minnesota Statutes, 
        section 349A.10, the operating budget 
        must not exceed $26,700,000 in fiscal 
        year 2006 and $27,350,000 in fiscal 
        year 2007.  
        On July 1, 2005, the director of the 
        State Lottery shall transfer unclaimed 
        prize funds accumulated before July 1, 
        2003, in the amount of $2,187,000, to 
        the general fund.  
        Sec. 21.  TORT CLAIMS                    161,000        161,000
        To be spent by the commissioner of 
        finance.  
        If the appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available for it.  
        Sec. 22.  MINNESOTA STATE   
        RETIREMENT SYSTEM                      1,176,000      1,205,000
        The amounts estimated to be needed for 
        each program are as follows: 
        (a) Legislators 
               783,000        802,000
        Under Minnesota Statutes, sections 
        3A.03, subdivision 2; 3A.04, 
        subdivisions 3 and 4; and 3A.115. 
        (b) Constitutional Officers 
               393,000        403,000
        Under Minnesota Statutes, sections 
        352C.031, subdivision 5; 352C.04, 
        subdivision 3; and 352C.09, subdivision 
        2. 
        If an appropriation in this section for 
        either year is insufficient, the 
        appropriation for the other year is 
        available for it. 
        Sec. 23.  MINNEAPOLIS EMPLOYEES
        RETIREMENT FUND                        8,065,000      8,065,000 
        The amounts estimated to be needed 
        under Minnesota Statutes, section 
        422A.101, subdivision 3. 
        Sec. 24.  MINNEAPOLIS TEACHERS
        RETIREMENT FUND                       15,800,000     15,800,000 
        The amounts estimated to be needed are 
        as follows: 
        (a) Special direct state aid to first
        class city teachers retirement funds
            13,300,000     13,300,000 
        Authorized under Minnesota Statutes, 
        section 354A.12, subdivisions 3a and 3c.
        (b) Special direct state matching aid
        to Minneapolis Teachers Retirement Fund
             2,500,000      2,500,000 
        Authorized under Minnesota Statutes, 
        section 354A.12, subdivision 3b. 
        Sec. 25.  ST. PAUL TEACHERS
        RETIREMENT FUND                        2,967,000      2,967,000 
        The amounts estimated to be needed for 
        special direct state aid to first class 
        city teachers retirement funds 
        authorized under Minnesota Statutes, 
        section 354A.12, subdivisions 3a and 3c.
        Sec. 26.  AMATEUR SPORTS
        COMMISSION                               300,000        206,000 
        Sec. 27.  COUNCIL ON BLACK  
        MINNESOTANS                              278,000        278,000 
        Sec. 28.  COUNCIL ON        
        CHICANO/LATINO AFFAIRS                   271,000        271,000 
        Sec. 29.  COUNCIL ON        
        ASIAN-PACIFIC MINNESOTANS                239,000        240,000 
        Sec. 30.  INDIAN AFFAIRS    
        COUNCIL                                  475,000        475,000 
        Sec. 31.  GENERAL CONTINGENT 
        ACCOUNTS                               1,000,000        500,000
                      Summary by Fund
        General                 500,000         -0-
        State Government
        Special Revenue         400,000       400,000
        Workers'
        Compensation            100,000       100,000
        The appropriations in this section may 
        only be spent with the approval of the 
        governor after consultation with the 
        Legislative Advisory Commission 
        pursuant to Minnesota Statutes, section 
        3.30. 
        If an appropriation in this section for 
        either year is insufficient, the 
        appropriation for the other year is 
        available for it.  
        If a contingent account appropriation 
        is made in one fiscal year, it should 
        be considered a biennial appropriation. 
        Sec. 32.  RACING COMMISSION APPROPRIATION 
        $156,000 in fiscal year 2005 is 
        appropriated to the Minnesota Racing 
        Commission from the special revenue 
        fund.  $113,000 of this amount is from 
        the interim license fee authorized by 
        Laws 2003, First Special Session 
        chapter 1, article 2, section 69, to 
        defray the regulatory oversight and 
        legal costs associated with the class A 
        license approved by the commission on 
        January 19, 2005.  Any unexpended 
        portion of this appropriation remains 
        available in fiscal year 2006. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
        Sec. 33.  DEPARTMENT OF 
        PUBLIC SAFETY                            246,000        196,000 
        These appropriations are for the costs 
        of issuing the "Support Our Troops" 
        license plates.  These appropriations 
        are from the vehicle services operating 
        account in the special revenue fund. 

                                   ARTICLE 2
                          STATE GOVERNMENT OPERATIONS
           Section 1.  [5.31] [STATEWIDE VOTER REGISTRATION SYSTEM.] 
           The secretary of state may sell intellectual property 
        rights associated with the statewide voter registration system 
        to other states or to units of local government in other states. 
        Receipts from the sale must be deposited in the state treasury 
        and credited to the Help America Vote Act account. 
           Sec. 2.  [6.755] [REPORTS TO THE LEGISLATURE.] 
           Section 3.195 applies to the state auditor.  For purposes 
        of determining whether members or employees of the legislature 
        wish to receive reports or publications prepared by the state 
        auditor, the state auditor may send a brief listing of reports 
        to each member.  The state auditor must deliver reports or 
        publications to the legislature electronically whenever it is 
        cost effective.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 3.  [6.79] [STATE MANDATES.] 
           A county, town, school district, or statutory or home rule 
        charter city may file a written resolution with the state 
        auditor objecting to a state mandate or making recommendations 
        for reforming a state mandate.  The state auditor must list on 
        the state auditor's Web site a list of all state mandates cited 
        in a resolution under this section, and the name of the unit of 
        local government citing the mandate. 
           Sec. 4.  [6.80] [RULE AND LAW WAIVER REQUESTS.] 
           Subdivision 1.  [GENERALLY.] (a) Except as provided in 
        paragraph (b), a local government unit may request the state 
        auditor to grant a waiver from one or more administrative rules 
        or a temporary, limited exemption from enforcement of state 
        procedural laws governing delivery of services by the local 
        government unit.  Two or more local government units may submit 
        a joint application for a waiver or exemption under this section 
        if they propose to cooperate in providing a service or program 
        that is subject to the rule or law.  Before submitting an 
        application to the state auditor, the governing body of the 
        local government unit must approve, in concept, the proposed 
        waiver or exemption at a meeting required to be public under 
        chapter 13D.  A local government unit or two or more units 
        acting jointly may apply for a waiver or exemption on behalf of 
        a nonprofit organization providing services to clients whose 
        costs are paid by the unit or units.  A waiver or exemption 
        granted to a nonprofit organization under this section applies 
        to services provided to all the organization's clients. 
           (b) A school district that is granted a variance from rules 
        of the commissioner of education under section 122A.163, need 
        not apply for a waiver of those rules under this section.  A 
        school district may not seek a waiver of rules under this 
        section if the commissioner of education has authority to grant 
        a variance to the rules under section 122A.163.  This paragraph 
        does not preclude a school district from being included in a 
        cooperative effort with another local government unit under this 
        section.  
           (c) Before petitioning the state auditor's office for an 
        exemption from an administrative rule, the petitioner must have 
        requested and been denied such an exemption from the appropriate 
        agency pursuant to sections 14.055 and 14.056. 
           Subd. 2.  [APPLICATION.] A local government unit requesting 
        a waiver of a rule or exemption from enforcement of a law under 
        this section shall present a written application to the state 
        auditor.  The application must include: 
           (1) the name and address of the entity for whom a waiver of 
        a rule or exemption from enforcement of a law is being 
        requested; 
           (2) identification of the service or program at issue; 
           (3) identification of the administrative rule or the law 
        imposing a procedural requirement with respect to which the 
        waiver or exemption is sought; 
           (4) a description of the improved service outcome sought, 
        including an explanation of the effect of the waiver or 
        exemption in accomplishing that outcome, and why that outcome 
        cannot be accomplished under established rules or laws; 
           (5) information on the state auditor's office treatment on 
        similar cases; 
           (6) the name, address, and telephone number of any person, 
        business, or other government unit the petitioner knows would be 
        adversely affected by the grant of the petition; and 
           (7) a signed statement as to the accuracy of the facts 
        presented. 
        A copy of the application must be provided by the requesting 
        local government unit to the exclusive representative certified 
        under section 179A.12 to represent employees who provide the 
        service or program affected by the requested waiver or exemption.
           Subd. 3.  [REVIEW PROCESS.] (a) Upon receipt of an 
        application from a local government unit, the state auditor 
        shall review the application.  The state auditor shall dismiss 
        an application if the application proposes a waiver of rules or 
        exemption from enforcement of laws that would result in due 
        process violations, violations of federal law or the state or 
        federal constitution, or the loss of services to people who are 
        entitled to them.  
           (b) The state auditor shall determine whether a law from 
        which an exemption for enforcement is sought is a procedural 
        law, specifying how a local government unit is to achieve an 
        outcome, rather than a substantive law prescribing the outcome 
        or otherwise establishing policy.  For the purposes of this 
        section, "procedural law" does not include a statutory notice 
        requirement.  In making the determination, the state auditor 
        shall consider whether the law specifies such requirements as:  
           (1) who must deliver a service; 
           (2) where the service must be delivered; 
           (3) to whom and in what form reports regarding the service 
        must be made; and 
           (4) how long or how often the service must be made 
        available to a given recipient.  
           (c) If the application requests a waiver of a rule or 
        temporary, limited exemptions from enforcement of a procedural 
        law over which the Metropolitan Council or a metropolitan agency 
        has jurisdiction, the state auditor shall also transmit a copy 
        of the application to the council or applicable metropolitan 
        agency, whichever has jurisdiction, for review and comment.  The 
        council or agency shall report its comments to the board within 
        60 days of the date the application was transmitted to the 
        council or agency.  The council or agency may point out any 
        resources or technical assistance it may be able to provide a 
        local government unit submitting a request under this section. 
           (d) Within 15 days after receipt of the application, the 
        state auditor shall transmit a copy of it to the commissioner of 
        each agency having jurisdiction over a rule or law from which a 
        waiver or exemption is sought.  The agency may mail a notice 
        that it has received an application for a waiver or exemption to 
        all persons who have registered with the agency under section 
        14.14, subdivision 1a, identifying the rule or law from which a 
        waiver or exemption is requested.  If no agency has jurisdiction 
        over the rule or law, the state auditor shall transmit a copy of 
        the application to the attorney general.  The agency shall 
        inform the state auditor of its agreement with or objection to 
        and grounds for objection to the waiver or exemption request 
        within 60 days of the date when the application was transmitted 
        to it.  An agency's failure to do so is considered agreement to 
        the waiver or exemption.  The state auditor shall decide whether 
        to grant a waiver or exemption at the end of the 60-day response 
        period.  Interested persons may submit written comments to the 
        state auditor on the waiver or exemption request up to the end 
        of the 60-day response period. 
           (e) If the exclusive representative of the affected 
        employees of the requesting local government unit objects to the 
        waiver or exemption request it may inform the state auditor of 
        the objection to and the grounds for the objection to the waiver 
        or exemption request within 60 days of the receipt of the 
        application. 
           Subd. 4.  [HEARING.] If a state agency under subdivision 3, 
        paragraph (d), or the exclusive representative of the affected 
        employees under subdivision 3, paragraph (e), has objected to a 
        waiver or exemption request, the state auditor's office shall 
        set a date for a hearing on the applications.  The hearing must 
        be conducted informally at a time and place determined by all 
        parties.  Persons representing the local government unit shall 
        present their case for the waiver or exemption, and persons 
        representing the agency or the exclusive representative of the 
        affected employees shall explain their objection to it.  The 
        state auditor may request additional information from the local 
        government unit or either objecting party.  The state auditor 
        may also request, either before or at the hearing, information 
        or comments from representatives of business, labor, local 
        governments, state agencies, consultants, and members of the 
        public.  If necessary, the hearing may be continued for a later 
        date.  The state auditor may modify the terms of the waiver or 
        exemption request in arriving at the agreement required under 
        subdivision 5. 
           Subd. 5.  [CONDITIONS OF AGREEMENTS.] (a) In determining 
        whether to grant a petition for a waiver of a rule or exemption 
        from enforcement of a law, the state auditor should consider the 
        following factors:  
           (1) whether there is a true and unique impediment under 
        current law to accomplishing the goal of the local government 
        unit; 
           (2) granting the waiver of a rule or exemption from 
        enforcement of law will only change procedural requirements of a 
        local government unit; 
           (3) the purpose of any rule or law that is waived is still 
        being met in another manner; 
           (4) granting the proposed waiver of a rule or exemption 
        from enforcement of a law would result in a more efficient means 
        of providing government services; and 
           (5) granting the proposed waiver will not have a 
        significant negative impact on other state government, local 
        government units, businesses, or citizens. 
           (b) If the state auditor grants a request for a waiver or 
        exemption, the state auditor and the local government unit shall 
        enter into an agreement providing for the delivery of the 
        service or program that is the subject of the application.  The 
        agreement must specify desired outcomes, the reasons why the 
        desired outcomes cannot be met under current laws or rules, and 
        the means of measurement by which the state auditor will 
        determine whether the outcomes specified in the agreement have 
        been met.  The agreement must specify the duration of the waiver 
        or exemption.  The duration of a waiver from an administrative 
        rule may be for no less than two years and no more than four 
        years, subject to renewal if both parties agree.  An exemption 
        from enforcement of a law terminates ten days after adjournment 
        of the regular legislative session held during the calendar year 
        following the year when the exemption is granted, unless the 
        legislature has acted to extend or make permanent the exemption. 
           (c) The state auditor must report any grants of waivers or 
        exemptions to the legislature, including the chairs of the 
        governmental operations and appropriate policy committees in the 
        house and senate, and the governor within 30 days. 
           (d) The state auditor may reconsider or renegotiate the 
        agreement if the rule or law affected by the waiver or exemption 
        is amended or repealed during the term of the original 
        agreement.  A waiver of a rule under this section has the effect 
        of a variance granted by an agency under section 14.055.  A 
        local unit of government that is granted an exemption from 
        enforcement of a procedural requirement in state law under this 
        section is exempt from that law for the duration of the 
        exemption.  The state auditor may require periodic reports from 
        the local government unit, or conduct investigations of the 
        service or program. 
           Subd. 6.  [ENFORCEMENT.] If the state auditor finds that 
        the local government unit is failing to comply with the terms of 
        the agreement under subdivision 5, the state auditor may rescind 
        the agreement.  Upon the rescission, the local unit of 
        government becomes subject to the rules and laws covered by the 
        agreement. 
           Subd. 7.  [ACCESS TO DATA.] If a local government unit, 
        through a cooperative program under this section, gains access 
        to data collected, created, received, or maintained by another 
        local government that is classified as not public, the unit 
        gaining access is governed by the same restrictions on access to 
        and use of the data as the unit that collected, created, 
        received, or maintained the data. 
           Sec. 5.  [8.065] [PRIVATE ATTORNEY CONTRACTS.] 
           The attorney general may not enter into a contract for 
        legal services in which the fees and expenses paid by the state 
        exceed, or can reasonably be expected to exceed, $1,000,000 
        unless the attorney general first submits the proposed contract 
        to the Legislative Advisory Commission, and waits at least 20 
        days to receive a possible recommendation from the commission. 
           Sec. 6.  [10.60] [PUBLIC WEB SITES AND PUBLICATIONS.] 
           Subdivision 1.  [DEFINITIONS.] For purposes of this section:
           (1) "political subdivision" means a county, statutory or 
        home rule charter city, town, school district, or other 
        municipal corporation, and the Metropolitan Council and a 
        metropolitan or regional agency; 
           (2) "publication" means a document printed with public 
        money by an elected or appointed official of a state agency or 
        political subdivision that is intended to be distributed 
        publicly outside of the state agency or political subdivision; 
           (3) "state agency" means an entity in the executive, 
        judicial, or legislative branch of state government; and 
           (4) "Web site" means a site maintained on the World Wide 
        Web that is available for unrestricted public access and that is 
        maintained with public money by an elected or appointed official 
        of a state agency or political subdivision. 
           Subd. 2.  [PURPOSE OF WEB SITE AND PUBLICATIONS.] The 
        purpose of a Web site and a publication must be to provide 
        information about the duties and jurisdiction of a state agency 
        or political subdivision or to facilitate access to public 
        services and information related to the responsibilities or 
        functions of the state agency or political subdivision. 
           Subd. 3.  [PROHIBITIONS.] (a) A Web site or publication 
        must not include pictures or other materials that tend to 
        attribute the Web site or publication to an individual or group 
        of individuals instead of to a public office, state agency, or 
        political subdivision.  A publication must not include the words 
        "with the compliments of" or contain letters of personal 
        greeting that promote an elected or appointed official of a 
        state agency or political subdivision. 
           (b) A Web site may not contain a link to a Weblog or site 
        maintained by a candidate, a political committee, a political 
        party or party unit, a principal campaign committee, or a state 
        committee.  Terms used in this paragraph have the meanings given 
        them in chapter 10A, except that "candidate" also includes a 
        candidate for an elected office of a political subdivision. 
           Subd. 4.  [PERMITTED MATERIAL.] (a) Material specified in 
        this subdivision may be included on a Web site or in a 
        publication, but only if the material complies with subdivision 
        2.  This subdivision is not a comprehensive list of material 
        that may be contained on a Web site or in a publication, if the 
        material complies with subdivision 2. 
           (b) A Web site or publication may include biographical 
        information about an elected or appointed official, a single 
        official photograph of the official, and photographs of the 
        official performing functions related to the office.  There is 
        no limitation on photographs, Webcasts, archives of Webcasts, 
        and audio or video files that facilitate access to information 
        or services or inform the public about the duties and 
        obligations of the office or that are intended to promote trade 
        or tourism.  A state Web site or publication may include 
        photographs or information involving civic or charitable work 
        done by the governor's spouse, provided that these activities 
        relate to the functions of the governor's office. 
           (c) A Web site or publication may include press releases, 
        proposals, policy positions, and other information directly 
        related to the legal functions, duties, and jurisdiction of a 
        public official or organization. 
           Subd. 5.  [OTHER STANDARDS.] This section does not prohibit 
        a state agency or political subdivision from adopting more 
        restrictive standards for the content of a Web site or 
        publication maintained by the agency or political subdivision. 
           Subd. 6.  [ENFORCEMENT.] Violation of this section is not a 
        crime and is not subject to civil penalty.  
           [EFFECTIVE DATE.] This section is effective for state 
        agencies July 1, 2005.  This section is effective for political 
        subdivisions July 1, 2006. 
           Sec. 7.  Minnesota Statutes 2004, section 11A.24, 
        subdivision 6, is amended to read: 
           Subd. 6.  [OTHER INVESTMENTS.] (a) In addition to the 
        investments authorized in subdivisions 1 to 5, and subject to 
        the provisions in paragraph (b), the state board may invest 
        funds in:  
           (1) venture capital investment businesses through 
        participation in limited partnerships, trusts, private 
        placements, limited liability corporations, limited liability 
        companies, limited liability partnerships, and corporations; 
           (2) real estate ownership interests or loans secured by 
        mortgages or deeds of trust or shares of real estate investment 
        trusts through investment in limited partnerships, bank 
        sponsored collective funds, trusts, mortgage participation 
        agreements, and insurance company commingled accounts, including 
        separate accounts; 
           (3) regional and mutual funds through bank sponsored 
        collective funds and open-end investment companies registered 
        under the Federal Investment Company Act of 1940, and closed-end 
        mutual funds listed on an exchange regulated by a governmental 
        agency; 
           (4) resource investments through limited partnerships, 
        trusts, private placements, limited liability corporations, 
        limited liability companies, limited liability partnerships, and 
        corporations; and 
           (5) international securities. 
           (b) The investments authorized in paragraph (a) must 
        conform to the following provisions:  
           (1) the aggregate value of all investments made according 
        to paragraph (a), clauses (1) to (4), may not exceed 35 percent 
        of the market value of the fund for which the state board is 
        investing; 
           (2) there must be at least four unrelated owners of the 
        investment other than the state board for investments made under 
        paragraph (a), clause (1), (2), (3), or (4); 
           (3) state board participation in an investment vehicle is 
        limited to 20 percent thereof for investments made under 
        paragraph (a), clause (1), (2), (3), or (4); and 
           (4) state board participation in a limited partnership does 
        not include a general partnership interest or other interest 
        involving general liability.  The state board may not engage in 
        any activity as a limited partner which creates general 
        liability.  
           (c) All financial, business, or proprietary data collected, 
        created, received, or maintained by the state board in 
        connection with investments authorized by paragraph (a), clause 
        (1), (2), or (4), are nonpublic data under section 13.02, 
        subdivision 9.  As used in this paragraph, "financial, business, 
        or proprietary data" means data, as determined by the 
        responsible authority for the state board, that is of a 
        financial, business, or proprietary nature, the release of which 
        could cause competitive harm to the state board, the legal 
        entity in which the state board has invested or has considered 
        an investment, the managing entity of an investment, or a 
        portfolio company in which the legal entity holds an interest.  
        As used in this section, "business data" is data described in 
        section 13.591, subdivision 1.  Regardless of whether they could 
        be considered financial, business, or proprietary data, the 
        following data received, prepared, used, or retained by the 
        state board in connection with investments authorized by 
        paragraph (a), clause (1), (2), or (4), are public at all times: 
           (1) the name and industry group classification of the legal 
        entity in which the state board has invested or in which the 
        state board has considered an investment; 
           (2) the state board commitment amount, if any; 
           (3) the funded amount of the state board's commitment to 
        date, if any; 
           (4) the market value of the investment by the state board; 
           (5) the state board's internal rate of return for the 
        investment, including expenditures and receipts used in the 
        calculation of the investment's internal rate of return; and 
           (6) the age of the investment in years. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 8.  Minnesota Statutes 2004, section 13.635, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [STATE BOARD OF INVESTMENT.] Certain government 
        data of the State Board of Investment related to investments are 
        classified under section 11A.24, subdivision 6. 
           Sec. 9.  [14.127] [LEGISLATIVE APPROVAL REQUIRED.] 
           Subdivision 1.  [COST THRESHOLDS.] An agency must determine 
        if the cost of complying with a proposed rule in the first year 
        after the rule takes effect will exceed $25,000 for:  (1) any 
        one business that has less than 50 full-time employees; or (2) 
        any one statutory or home rule charter city that has less than 
        ten full-time employees.  For purposes of this section, 
        "business" means a business entity organized for profit or as a 
        nonprofit, and includes an individual, partnership, corporation, 
        joint venture, association, or cooperative. 
           Subd. 2.  [AGENCY DETERMINATION.] An agency must make the 
        determination required by subdivision 1 before the close of the 
        hearing record, or before the agency submits the record to the 
        administrative law judge if there is no hearing.  The 
        administrative law judge must review and approve or disapprove 
        the agency determination under this section. 
           Subd. 3.  [LEGISLATIVE APPROVAL REQUIRED.] If the agency 
        determines that the cost exceeds the threshold in subdivision 1, 
        or if the administrative law judge disapproves the agency's 
        determination that the cost does not exceed the threshold in 
        subdivision 1, any business that has less than 50 full-time 
        employees or any statutory or home rule charter city that has 
        less than ten full-time employees may file a written statement 
        with the agency claiming a temporary exemption from the rules.  
        Upon filing of such a statement with the agency, the rules do 
        not apply to that business or that city until the rules are 
        approved by a law enacted after the agency determination or 
        administrative law judge disapproval. 
           Subd. 4.  [EXCEPTIONS.] (a) Subdivision 3 does not apply if 
        the administrative law judge approves an agency's determination 
        that the legislature has appropriated money to sufficiently fund 
        the expected cost of the rule upon the business or city proposed 
        to be regulated by the rule. 
           (b) Subdivision 3 does not apply if the administrative law 
        judge approves an agency's determination that the rule has been 
        proposed pursuant to a specific federal statutory or regulatory 
        mandate. 
           (c) This section does not apply if the rule is adopted 
        under section 14.388 or under another law specifying that the 
        rulemaking procedures of this chapter do not apply.  
           (d) This section does not apply to a rule adopted by the 
        Public Utilities Commission. 
           (e) Subdivision 3 does not apply if the governor waives 
        application of subdivision 3.  The governor may issue a waiver 
        at any time, either before or after the rule would take effect, 
        but for the requirement of legislative approval.  As soon as 
        possible after issuing a waiver under this paragraph, the 
        governor must send notice of the waiver to the speaker of the 
        house of representatives and the president of the senate and 
        must publish notice of this determination in the State Register. 
           Subd. 5.  [SEVERABILITY.] If an administrative law judge 
        determines that part of a proposed rule exceeds the threshold 
        specified in subdivision 1, but that a severable portion of a 
        proposed rule does not exceed the threshold in subdivision 1, 
        the administrative law judge may provide that the severable 
        portion of the rule that does not exceed the threshold may take 
        effect without legislative approval.  
           [EFFECTIVE DATE.] This section is effective July 1, 2005.  
        This section applies to any rule for which the hearing record 
        has not closed before July 1, 2005, or, if there is no public 
        hearing, for which the agency has not submitted the record to 
        the administrative law judge before that date. 
           Sec. 10.  Minnesota Statutes 2004, section 14.19, is 
        amended to read: 
           14.19 [DEADLINE TO COMPLETE RULEMAKING.] 
           Within 180 days after issuance of the administrative law 
        judge's report or that of the chief administrative law judge, 
        the agency shall submit its notice of adoption, amendment, or 
        repeal to the State Register for publication.  If the agency has 
        not submitted its notice to the State Register within 180 days, 
        the rule is automatically withdrawn.  The agency may not adopt 
        the withdrawn rules without again following the procedures of 
        sections 14.05 to 14.28, with the exception of section 14.101, 
        if the noncompliance is approved by the chief administrative law 
        judge.  The agency shall report to the Legislative Coordinating 
        Commission, other appropriate committees of the legislature, and 
        the governor its failure to adopt rules and the reasons for that 
        failure.  The 180-day time limit of this section does not 
        include:  
           (1) any days used for review by the chief administrative 
        law judge or the commission if the review is required by law; or 
           (2) days during which the rule cannot be adopted, because 
        of votes by legislative committees under section 14.126; or 
           (3) days during which the rule cannot be adopted because 
        approval of the legislature is required under section 14.127. 
           Sec. 11.  Minnesota Statutes 2004, section 15.054, is 
        amended to read: 
           15.054 [PUBLIC EMPLOYEES NOT TO PURCHASE MERCHANDISE FROM 
        GOVERNMENTAL AGENCIES; EXCEPTIONS; PENALTY.] 
           No officer or employee of the state or any of its political 
        subdivisions shall sell or procure for sale or possess or 
        control for sale to any other officer or employee of the state 
        or subdivision, as appropriate, any property or materials owned 
        by the state or subdivision except pursuant to conditions 
        provided in this section.  Property or materials owned by the 
        state or a subdivision and not needed for public purposes, may 
        be sold to an employee of the state or subdivision after 
        reasonable public notice at a public auction or by sealed 
        response, if the employee is not directly involved in the 
        auction or process pertaining to the administration and 
        collection of sealed responses.  Requirements for reasonable 
        public notice may be prescribed by other law or ordinance so 
        long as at least one week's published notice is specified.  An 
        employee of the state or a political subdivision may purchase no 
        more than one motor vehicle from the state in any 12-month 
        period at any one auction.  A person violating the provisions of 
        this section is guilty of a misdemeanor.  This section shall not 
        apply to the sale of property or materials acquired or produced 
        by the state or subdivision for sale to the general public in 
        the ordinary course of business.  Nothing in this section shall 
        prohibit an employee of the state or a political subdivision 
        from selling or possessing for sale public property if the sale 
        or possession for sale is in the ordinary course of business or 
        normal course of the employee's duties. 
           Sec. 12.  [15.60] [PUBLIC SAFETY OFFICERS; AMERICAN FLAG.] 
           (a) A public employer may not forbid a peace officer or 
        firefighter from wearing a patch or pin depicting the flag of 
        the United States of America on the employee's uniform, 
        according to customary and standard flag etiquette.  However, a 
        public employer may limit the size of a flag patch worn on a 
        uniform to no more than three inches by five inches. 
           (b) For purposes of this section: 
           (1) "peace officer" has the meaning given in section 
        626.84, subdivision 1, paragraph (c) or (f); 
           (2) "firefighter" means a person as defined in section 
        299A.41, subdivision 4, clause (3) or (4); and 
           (3) "public employer" has the meaning given in section 
        179A.03, subdivision 15, and also includes a municipal fire 
        department and an independent nonprofit firefighting corporation.
           (c) A peace officer or firefighter who believes a public 
        employer is violating this section may request the attorney 
        general to issue an opinion on the issue.  Upon request, the 
        attorney general must issue a written opinion, which is binding, 
        unless a court makes a contrary decision.  If after issuing an 
        opinion, the attorney general determines that a public employer 
        continues to violate this section, the attorney general may 
        bring an action in district court to compel compliance. 
           Sec. 13.  Minnesota Statutes 2004, section 16A.103, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [REPORT ON EXPENDITURE INCREASES.] By January 10 
        of an odd-numbered year, the commissioner of finance must report 
        on those programs or components of programs for which 
        expenditures for the next biennium according to the forecast 
        issued the previous November are projected to increase more than 
        15 percent over the expenditures for that program in the current 
        biennium.  The report must include an analysis of the factors 
        that are causing the increases in expenditures. 
           Sec. 14.  Minnesota Statutes 2004, section 16A.1286, 
        subdivision 3, is amended to read: 
           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.
           Sec. 15.  Minnesota Statutes 2004, section 16A.151, 
        subdivision 2, is amended to read: 
           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. 
           (d) State agencies may accept funds as directed by a 
        federal court for any restitution or monetary penalty under 
        United States Code, title 18, section 3663(a)(3) or United 
        States Code, title 18, section 3663A(a)(3).  Funds received must 
        be deposited in a special revenue account and are appropriated 
        to the commissioner of the agency for the purpose as directed by 
        the federal court. 
           (e) Subdivision 1 does not apply to a recovery or 
        settlement of less than $750,000. 
           Sec. 16.  Minnesota Statutes 2004, section 16A.152, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] (a) If on the 
        basis of a forecast of general fund revenues and expenditures, 
        the commissioner of finance determines that there will be a 
        positive unrestricted budgetary general fund balance at the 
        close of the biennium, the commissioner of finance must allocate 
        money to the following accounts and purposes in priority order: 
           (1) the cash flow account established in subdivision 1 
        until that account reaches $350,000,000; 
           (2) the budget reserve account established in subdivision 
        1a until that account reaches $653,000,000; 
           (3) the amount necessary to increase the aid payment 
        schedule for school district aids and credits payments in 
        section 127A.45 to not more than 90 percent rounded to the 
        nearest tenth of a percent without exceeding the amount 
        available and with any remaining funds deposited in the budget 
        reserve; and 
           (4) the amount necessary to restore all or a portion of the 
        net aid reductions under section 127A.441 and to reduce the 
        property tax revenue recognition shift under section 123B.75, 
        subdivision 5, paragraph (c), and Laws 2003, First Special 
        Session chapter 9, article 5, section 34, as amended by Laws 
        2003, First Special Session chapter 23, section 20, by the same 
        amount. 
           (b) The amounts necessary to meet the requirements of this 
        section are appropriated from the general fund within two weeks 
        after the forecast is released or, in the case of transfers 
        under paragraph (a), clauses (3) and (4), as necessary to meet 
        the appropriations schedules otherwise established in statute. 
           (c) To the extent that a positive unrestricted budgetary 
        general fund balance is projected, appropriations under this 
        section must be made before any transfer is made under section 
        16A.1522 takes effect. 
           (d) The commissioner of finance shall certify the total 
        dollar amount of the reductions under paragraph (a), clauses (3) 
        and (4), to the commissioner of education.  The commissioner of 
        education shall increase the aid payment percentage and reduce 
        the property tax shift percentage by these amounts and apply 
        those reductions to the current fiscal year and thereafter.  
           Sec. 17.  Minnesota Statutes 2004, section 16A.1522, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORECAST.] If, on the basis of a forecast 
        of general fund revenues and expenditures in November of an 
        even-numbered year or February of an odd-numbered year, the 
        commissioner projects a positive unrestricted budgetary general 
        fund balance at the close of the biennium that exceeds one-half 
        of one percent of total general fund biennial revenues, the 
        commissioner shall designate the entire balance as available for 
        rebate to the taxpayers of this state.  In forecasting, 
        projecting, or designating the unrestricted budgetary general 
        fund balance or general fund biennial revenue under this 
        section, the commissioner shall not include any balance or 
        revenue attributable to settlement payments received after July 
        1, 1998, and before July 1, 2001, as defined in Section IIB of 
        the settlement document, filed May 18, 1998, in State v. Philip 
        Morris, Inc., No. C1-94-8565 (Minnesota District Court, Second 
        Judicial District).  
           Sec. 18.  Minnesota Statutes 2004, section 16A.281, is 
        amended to read: 
           16A.281 [APPROPRIATIONS TO LEGISLATURE.] 
           Except as provided in this section, section 16A.28 applies 
        to appropriations made to the legislature, the senate, the house 
        of representatives, or its committees or commissions.  An 
        appropriation made to the legislature, the senate, the house of 
        representatives, or a legislative commission or committee other 
        than a standing committee, if not spent during the first year, 
        may be spent during the second year of a biennium.  An 
        unexpended balance not carried forward and remaining unexpended 
        and unencumbered at the end of a biennium lapses and shall be 
        returned to the fund from which appropriated.  Balances may be 
        carried forward into the next biennium and credited to special 
        accounts to be used only as follows:  (1) for nonrecurring 
        expenditures on investments that enhance efficiency or improve 
        effectiveness; (2) to pay expenses associated with special 
        sessions, interim activities, public hearings, or other public 
        outreach efforts and related activities; and (3) to pay 
        severance costs of involuntary terminations.  The approval of 
        the commissioner of finance under section 16A.28, subdivision 2, 
        does not apply to the legislature.  An appropriation made to the 
        legislature, the senate, the house of representatives, or a 
        standing committee for all or part of a biennium may be spent in 
        either year of the biennium. 
           Sec. 19.  [16B.296] [TRANSFER OF REAL PROPERTY.] 
           Notwithstanding any law to the contrary, real property 
        purchased in whole or in part with state funds may not be 
        transferred for less than the appraised value, or if the 
        property has not been appraised, for less than the fair market 
        value as determined by the commissioner of administration.  This 
        section does not apply to a department listed in section 15.01, 
        the Minnesota State Colleges and Universities, the University of 
        Minnesota, or a political subdivision of the state. 
           Sec. 20.  Minnesota Statutes 2004, section 16B.33, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DESIGNER SELECTION PROCESS.] (a)  [PUBLICITY.] 
        Upon receipt of a request from a user agency for a primary 
        designer, the board shall publicize the proposed project in 
        order to determine the identity of designers interested in the 
        design work on the project.  The board shall establish criteria 
        for the selection process and make this information public, and 
        shall compile data on and conduct interviews of designers.  The 
        board's selection criteria must include consideration of each 
        interested designer's performance on previous projects for the 
        state or any other person.  Upon completing the process, the 
        board shall select the primary designer and shall state its 
        reasons in writing.  If the board's vote for the selection of a 
        primary designer results in a tie vote, the nonvoting member 
        appointed under subdivision 2, paragraph (b), must vote for the 
        selection of the primary designer.  Notification to the 
        commissioner of the selection shall be made not more than 60 
        days after receipt from a user agency of a request for a primary 
        designer.  The commissioner shall promptly notify the designer 
        and the user agency.  The commissioner shall negotiate the 
        designer's fee and prepare the contract to be entered into 
        between the designer and the user agency.  
           (b)  [CONFLICT OF INTEREST.] A board member may not 
        participate in the review, discussion, or selection of a 
        designer or firm in which the member has a financial interest. 
           (c)  [SELECTION BY COMMISSIONER.] In the event the board 
        receives a request for a primary designer on a project, the 
        estimated cost of which is less than the limit established by 
        subdivision 3, or a planning project with estimated fees of less 
        than the limit established by subdivision 3, the board may 
        submit the request to the commissioner of administration, with 
        or without recommendations, and the commissioner shall thereupon 
        select the primary designer for the project.  
           (d)  [SECOND SELECTION.] If the designer selected for a 
        project declines the appointment or is unable to reach agreement 
        with the commissioner on the fee or the terms of the contract, 
        the commissioner shall, within 60 days after the first 
        appointment, request the board to make another selection.  
           (e)  [SIXTY DAYS TO SELECT.] If the board fails to make a 
        selection and forward its recommendation to the commissioner 
        within 60 days of the user agency's request for a designer, the 
        commissioner may appoint a designer to the project without the 
        recommendation of the board.  
           (f)  [LESS THAN SATISFACTORY PERFORMANCE.] The 
        commissioner, or the University of Minnesota and the Minnesota 
        State Colleges and Universities for projects under their 
        supervision, shall forward to the board a written report 
        describing each instance in which the performance of a designer 
        selected by the board or the commissioner has been less than 
        satisfactory.  Criteria for determining satisfaction include the 
        ability of the designer to complete design work on time, to 
        provide a design responsive to program needs within the 
        constraints of the budget, to solve design problems and achieve 
        a design consistent with the proposed function of the building, 
        to avoid costly design errors or omissions, and to observe the 
        construction work.  These reports are public data and are 
        available for inspection under section 13.03. 
           Sec. 21.  [16C.064] [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 in an amount greater than $50,000,000 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.  Money 
        appropriated for the contract or purchase must be used to pay 
        for the analysis.  A cost-benefit analysis must be performed for 
        a project if an aggregation of contracts or purchases for a 
        project exceeds $50,000,000. 
           (b) All cost-benefit analysis documents under this section, 
        including preliminary drafts and notes, are public data. 
           (c) If a cost-benefit analysis does not show a positive 
        benefit to the public, the governor may approve a contract or 
        purchase of goods or services if a cost-effectiveness study had 
        been done that shows the proposed project is the most effective 
        way to provide a necessary public good. 
           (d) 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.  This section does not apply to 
        contracts involving the Minnesota state colleges and 
        universities, state buildings, or state highways. 
           (e) This section is repealed effective July 1, 2008. 
           Sec. 22.  Minnesota Statutes 2004, section 16C.10, 
        subdivision 7 is amended to read:  
           Subd. 7.  [REVERSE AUCTION.] (a) For the purpose of this 
        subdivision, "reverse auction" means a purchasing process in 
        which vendors compete to provide goods or engineering design or 
        computer services at the lowest selling price in an open and 
        interactive environment. 
           (b) The provisions of sections 13.591, subdivision 3, and 
        16C.06, subdivision 2, do not apply when the commissioner 
        determines that a reverse auction is the appropriate purchasing 
        process.  
           Sec. 23.  [16C.143] [ENERGY FORWARD PRICING MECHANISMS.] 
           Subdivision 1.  [DEFINITIONS.] The following definitions 
        apply in this section: 
           (1) "energy" means natural gas, heating oil, propane, and 
        any other energy source except electricity used in state 
        facilities; and 
           (2) "forward pricing mechanism" means a contract or 
        financial instrument that obligates a state agency to buy or 
        sell a specified quantity of energy at a future date at a set 
        price. 
           Subd. 2.  [AUTHORITY.] Notwithstanding any other law to the 
        contrary, the commissioner may use forward pricing mechanisms 
        for budget risk reduction. 
           Subd. 3.  [CONDITIONS.] Forward pricing mechanism 
        transactions must be made only under the following conditions: 
           (1) the quantity of energy affected by the forward pricing 
        mechanism must not exceed 90 percent of the estimated energy use 
        for the state agency for the same period, which shall not exceed 
        24 months; and 
           (2) a separate account must be established for each state 
        agency using a forward pricing mechanism. 
           Subd. 4.  [WRITTEN POLICIES AND PROCEDURES.] Before 
        exercising the authority under this section, the commissioner 
        must develop written policies and procedures governing the use 
        of forward pricing mechanisms.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 24.  Minnesota Statutes 2004, section 16C.144, is 
        amended to read: 
           16C.144 [GUARANTEED ENERGY SAVINGS CONTRACTS PROGRAM.] 
           Subdivision 1.  [DEFINITIONS.] The following definitions 
        apply to this section.  
           (a) "Utility" means electricity, natural gas, or other 
        energy resource, water, and wastewater. 
           (b) "Utility cost savings" means the difference between the 
        utility costs under the precontract conditions and the utility 
        costs after the changes have been made under the contract.  Such 
        savings shall be calculated in comparison to an established 
        baseline of utility costs installation of the utility 
        cost-savings measures pursuant to the guaranteed energy savings 
        agreement and the baseline utility costs after baseline 
        adjustments have been made. 
           (c) "Established baseline" means the precontract utilities, 
        operations, and maintenance costs.  
           (d) "Baseline" means the preagreement utilities, 
        operations, and maintenance costs. 
           (d) "Utility cost-savings measure" means a measure that 
        produces utility cost savings and/or or operation and 
        maintenance cost savings.  
           (e) "Operation and maintenance cost savings" means a 
        measurable decrease in difference between operation and 
        maintenance costs after the installation of the utility 
        cost-savings measures pursuant to the guaranteed energy savings 
        agreement and the baseline operation and maintenance costs that 
        is a direct result of the implementation of one or more utility 
        cost-savings measures but does after inflation adjustments have 
        been made.  Operation and maintenance costs savings shall not 
        include savings from in-house staff labor.  Such savings shall 
        be calculated in comparison to an established baseline of 
        operation and maintenance costs. 
           (f) "Guaranteed energy savings contract agreement" means a 
        contract an agreement for the evaluation, recommendation, and 
        installation of one or more utility cost-savings measures that 
        includes the qualified provider's guarantee as required under 
        subdivision 2.  The contract must provide that all payments are 
        to be made over time but not to exceed ten years from the date 
        of final installation, and the savings are guaranteed to the 
        extent necessary to make payments for the utility cost-savings 
        measures.  
           (g) "Baseline adjustments" means adjusting the established 
        utility cost savings baselines in paragraphs (b) and 
        (d) annually for changes in the following variables: 
           (1) utility rates; 
           (2) number of days in the utility billing cycle; 
           (3) square footage of the facility; 
           (4) operational schedule of the facility; 
           (5) facility temperature set points; 
           (6) weather; and 
           (7) amount of equipment or lighting utilized in the 
        facility.  
           (h) "Inflation adjustment" means adjusting the operation 
        and maintenance cost-savings baseline annually for inflation. 
           (i) "Lease purchase contract agreement" means a 
        contract an agreement obligating the state to make regular lease 
        payments to satisfy the lease costs of the utility cost-savings 
        measures until the final payment, after which time the utility 
        cost-savings measures become the sole property of the state of 
        Minnesota.  
           (i) (j) "Qualified provider" means a person or business 
        experienced in the design, implementation, and installation of 
        utility cost-savings measures. 
           (j) (k) "Engineering report" means a report prepared by a 
        professional engineer licensed by the state of Minnesota 
        summarizing estimates of all costs of installations, 
        modifications, or remodeling, including costs of design, 
        engineering, installation, maintenance, repairs, and estimates 
        of the amounts by which utility and operation and maintenance 
        costs will be reduced.  
           (k) (l) "Capital cost avoidance" means money expended by a 
        state agency to pay for utility cost-savings measures with a 
        guaranteed savings contract agreement so long as the measures 
        that are being implemented to achieve the utility, operation, 
        and maintenance cost savings are a significant portion of an 
        overall project as determined by the commissioner. 
           (l) (m) "Guaranteed energy savings contracting program 
        guidelines" means policies, procedures, and requirements of 
        guaranteed savings contracts agreements established by the 
        Department of Administration upon enacting this legislation. 
           Subd. 2.  [GUARANTEED ENERGY SAVINGS CONTRACT AGREEMENT.] 
        The commissioner may enter into a guaranteed energy savings 
        contract agreement with a qualified provider if: 
           (1) the qualified provider is selected through a 
        competitive process in accordance with the guaranteed energy 
        savings contracting program guidelines within the Department of 
        Administration; 
           (2) the qualified provider agrees to submit an engineering 
        report prior to the execution of the guaranteed energy savings 
        contract agreement.  The cost of the engineering report may be 
        considered as part of the implementation costs if the 
        commissioner enters into a guaranteed energy savings agreement 
        with the provider; 
           (3) the term of the guaranteed energy savings agreement 
        shall not exceed 15 years from the date of final installation; 
           (4) the commissioner finds that the amount it would spend 
        on the utility cost-savings measures recommended in the 
        engineering report will not exceed the amount to be saved in 
        utility operation and maintenance costs over ten 15 years from 
        the date of implementation of utility cost-savings measures; 
           (4) (5) the qualified provider provides a written guarantee 
        that the annual utility, operation, and maintenance cost savings 
        during the term of the guaranteed energy savings agreement will 
        meet or exceed the costs of the guaranteed savings contract 
        annual payments due under a lease purchase agreement.  The 
        qualified provider shall reimburse the state for any shortfall 
        of guaranteed utility, operation, and maintenance cost savings; 
        and 
           (5) (6) the qualified provider gives a sufficient bond in 
        accordance with section 574.26 to the commissioner for the 
        faithful implementation and installation of the utility 
        cost-savings measures.  
           Subd. 3.  [LEASE PURCHASE CONTRACT AGREEMENT.] The 
        commissioner may enter into a lease purchase agreement with any 
        party for the implementation of utility cost-savings measures in 
        accordance with an engineering report the guaranteed energy 
        savings agreement.  The implementation costs of the utility 
        cost-savings measures recommended in the engineering report 
        shall not exceed the amount to be saved in utility and operation 
        and maintenance costs over the term of the lease purchase 
        agreement.  The term of the lease purchase agreement shall not 
        exceed ten 15 years from the date of final installation.  The 
        lease is assignable in accordance with terms approved by the 
        commissioner of finance. 
           Subd. 4.  [USE OF CAPITAL COST AVOIDANCE.] The affected 
        state agency may contribute funds for capital cost avoidance for 
        guaranteed energy savings contracts agreements.  Use of capital 
        cost avoidance is subject to the guaranteed energy savings 
        contracting program guidelines within the Department of 
        Administration. 
           Subd. 5.  [REPORT.] By January 15 of 2005 and, 2007, the 
        commissioner of administration shall submit to the commissioner 
        of finance and the chairs of the senate and house of 
        representatives capital investment committees a list of projects 
        in the agency that have been funded using guaranteed energy 
        savings, as outlined in this section, during the preceding 
        biennium.  For each guaranteed energy savings contract agreement 
        entered into, the commissioner of administration shall contract 
        with an independent third party to evaluate the 
        cost-effectiveness of each utility cost-savings measure 
        implemented to ensure that such measures were the least-cost 
        measures available.  For the purposes of this section, 
        "independent third party" means an entity not affiliated with 
        the qualified provider, that is not involved in creating or 
        providing conservation project services to that provider, and 
        that has expertise (or access to expertise) in energy savings 
        practices.  
           Subd. 6.  [CONTRACT LIMITS.] Contracts may not be entered 
        into after June 30, 2007. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 25.  Minnesota Statutes 2004, section 16C.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SMALL BUSINESS PROCUREMENTS.] (a) The 
        commissioner shall for each fiscal year ensure that small 
        businesses receive at least 25 percent of the value of 
        anticipated total state procurement of goods and services, 
        including printing and construction.  The commissioner shall 
        divide the procurements so designated into contract award units 
        of economically feasible production runs in order to facilitate 
        offers or bids from small businesses.  
           (b) The commissioner must solicit and encourage Minnesota 
        small businesses to submit responses or bids when the 
        commissioner is entering into master contracts.  If 
        cost-effective, when entering into a master contract, the 
        commissioner must attempt to negotiate contract terms that allow 
        agencies the option of purchasing from small businesses, 
        particularly small businesses that are geographically proximate 
        to the entity making the purchase. 
           (c) In making the annual designation of such procurements 
        the commissioner shall attempt (1) to vary the included 
        procurements so that a variety of goods and services produced by 
        different small businesses are obtained each year, and (2) to 
        designate small business procurements in a manner that will 
        encourage proportional distribution of such awards among the 
        geographical regions of the state.  To promote the geographical 
        distribution of awards, the commissioner may designate a portion 
        of the small business procurement for award to bidders from a 
        specified congressional district or other geographical region 
        specified by the commissioner.  The failure of the commissioner 
        to designate particular procurements shall not be deemed to 
        prohibit or discourage small businesses from seeking the 
        procurement award through the normal process.  
           Sec. 26.  [16C.231] [SURPLUS PROPERTY.] 
           Notwithstanding section 15.054 or 16C.23, the commissioner 
        may sell a surplus gun used by a state trooper to the trooper 
        who used the gun in the course of employment.  The sale price 
        must be the fair market value of the gun, as determined by the 
        commissioner. 
           Sec. 27.  Minnesota Statutes 2004, section 16C.26, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PUBLICATION OF NOTICE; EXPENDITURES OVER 
        $15,000 $25,000.] If the amount of an expenditure is estimated 
        to exceed $15,000 $25,000, sealed bids must be solicited by 
        public notice inserted at least once in a newspaper or trade 
        journal not less than seven days before the final date of 
        submitting bids in a manner designated by the commissioner.  The 
        commissioner shall designate the newspaper or trade journal for 
        that publication and may designate different newspapers or 
        journals according to the nature of the purchase or 
        contract.  To the extent practical, this must include posting on 
        a state Web site.  For expenditures over $50,000, the 
        commissioner shall also solicit sealed bids by sending providing 
        notices by mail to all prospective bidders known to the 
        commissioner and by posting notice on a public bulletin board in 
        the commissioner's office a state Web site at least five seven 
        days before the final date of submitting bids.  All bids over 
        $50,000 must be sealed when they are received and must be opened 
        in public at the hour stated in the notice.  All original bids 
        and all documents pertaining to the award of a contract must be 
        retained and made a part of a permanent file or record and 
        remain open to public inspection. 
           Sec. 28.  Minnesota Statutes 2004, section 16C.26, 
        subdivision 4, is amended to read: 
           Subd. 4.  [BUILDING AND CONSTRUCTION CONTRACTS; 
        $15,000 $50,000 OR LESS.] All contracts, the amount of which is 
        estimated to be $15,000 or less, may be made either upon 
        competitive bids or in the open market, in the discretion of the 
        commissioner.  So far as practicable, however, they must be 
        based on at least three competitive bids which must be 
        permanently recorded.  An informal bid may be used for building, 
        construction, and repair contracts that are estimated at less 
        than $50,000.  Informal bids must be authenticated by the bidder 
        in a manner specified by the commissioner. 
           Sec. 29.  Minnesota Statutes 2004, section 16C.28, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ALTERATIONS AND ERASURES.] A bid containing an 
        alteration or erasure of any price contained in the bid which is 
        used in determining the lowest responsible bid must be rejected 
        unless the alteration or erasure is corrected under this 
        subdivision in a manner that is clear and authenticated by an 
        authorized representative of the responder.  An alteration or 
        erasure may be crossed out and the correction printed in ink or 
        typewritten adjacent to it and initialed in ink by the person 
        signing the bid by an authorized representative of the responder.
           Sec. 30.  [168.1298] [SPECIAL "SUPPORT OUR TROOPS" LICENSE 
        PLATES.] 
           Subdivision 1.  [GENERAL REQUIREMENTS AND PROCEDURES.] (a) 
        The commissioner shall issue special "Support Our Troops" 
        license plates to an applicant who: 
           (1) is an owner of a passenger automobile, one-ton pickup 
        truck, recreational vehicle, or motorcycle; 
           (2) pays a fee of $10 to cover the costs of handling and 
        manufacturing the plates; 
           (3) pays the registration tax required under section 
        168.013; 
           (4) pays the fees required under this chapter; 
           (5) contributes a minimum of $30 annually to the Minnesota 
        "Support Our Troops" account established in section 190.19; and 
           (6) complies with laws and rules governing registration and 
        licensing of vehicles and drivers. 
           (b) The license application under this section must 
        indicate that the annual contribution specified under paragraph 
        (a), clause (5), is a minimum contribution to receive the plates 
        and that the applicant may make an additional contribution to 
        the account. 
           Subd. 2.  [DESIGN.] After consultation with interested 
        groups, the adjutant general and the commissioner of veterans 
        affairs shall design the special plate, subject to the approval 
        of the commissioner. 
           Subd. 3.  [NO REFUND.] Contributions under this section 
        must not be refunded. 
           Subd. 4.  [PLATE TRANSFERS.] Notwithstanding section 
        168.12, subdivision 1, on payment of a transfer fee of $5, 
        plates issued under this section may be transferred to another 
        passenger automobile, one-ton pickup truck, recreational 
        vehicle, or motorcycle owned by the individual to whom the 
        special plates were issued. 
           Subd. 5.  [CONTRIBUTION AND FEES CREDITED.] Contributions 
        under subdivision 1, paragraph (a), clause (5), must be paid to 
        the commissioner and credited to the Minnesota "Support Our 
        Troops" account established in section 190.19.  The fees 
        collected under this section must be deposited in the vehicle 
        services operating account in the special revenue fund. 
           Subd. 6.  [RECORD.] The commissioner shall maintain a 
        record of the number of plates issued under this section. 
           Sec. 31.  [190.19] [MINNESOTA "SUPPORT OUR TROOPS" 
        ACCOUNT.] 
           Subdivision 1.  [ESTABLISHMENT.] The Minnesota "Support Our 
        Troops" account is established in the special revenue fund.  The 
        account shall consist of contributions from private sources and 
        appropriations. 
           Subd. 2.  [USES.] (a) Money appropriated from the Minnesota 
        "Support Our Troops" account may be used for: 
           (1) grants directly to eligible individuals; 
           (2) grants to one or more eligible foundations for the 
        purpose of making grants to eligible individuals, as provided in 
        this section; or 
           (3) veterans' services. 
           (b) The term, "eligible individual" includes any person who 
        is: 
           (1) a member of the Minnesota National Guard or a reserve 
        unit based in Minnesota who has been called to active service as 
        defined in section 190.05, subdivision 5; 
           (2) a Minnesota resident who is a member of a military 
        reserve unit not based in Minnesota, if the member is called to 
        active service as defined in section 190.05, subdivision 5; 
           (3) any other Minnesota resident performing active service 
        for any branch of the military of the United States; and 
           (4) members of the immediate family of an individual 
        identified in clause (1), (2), or (3).  For purposes of this 
        clause, "immediate family" means the individual's spouse and 
        minor children and, if they are dependents of the member of the 
        military, the member's parents, grandparents, siblings, 
        stepchildren, and adult children. 
           (c) The term "eligible foundation" includes any 
        organization that: 
           (1) is a tax-exempt organization under section 501(c)(3) of 
        the Internal Revenue Code; 
           (2) has articles of incorporation under chapter 317A 
        specifying the purpose of the organization as including the 
        provision of financial assistance to members of the Minnesota 
        National Guard and other United States armed forces reserves and 
        their families and survivors; and 
           (3) agrees in writing to distribute any grant money 
        received from the adjutant general under this section to 
        eligible individuals as defined in this section and in 
        accordance with any written policies and rules the adjutant 
        general may impose as conditions of the grant to the foundation. 
           (d) The maximum grant awarded to an eligible individual in 
        a calendar year with funds from the Minnesota "Support Our 
        Troops" account, either through an eligible institution or 
        directly from the adjutant general, may not exceed $2,000. 
           Subd. 3.  [ANNUAL REPORT.] The adjutant general must report 
        by February 1, 2007, and each year thereafter, to the chairs and 
        ranking minority members of the legislative committees and 
        divisions with jurisdiction over military and veterans' affairs 
        on the number, amounts, and use of grants made by the adjutant 
        general from the Minnesota "Support Our Troops" account in the 
        previous year. 
           Sec. 32.  Minnesota Statutes 2004, section 240A.03, 
        subdivision 5, is amended to read: 
           Subd. 5.  [EXEMPTION OF PROPERTY.] Real or personal 
        property acquired, owned, leased, controlled, used, or occupied 
        by the commission for the purposes of amateur sports facilities 
        is declared to be acquired, owned, leased, controlled, used, and 
        occupied for public, governmental, and municipal purposes, and 
        is exempt from ad valorem taxation by the state or any political 
        subdivision of the state, provided that the properties are 
        subject to special assessments levied by a political subdivision 
        for a local improvement in amounts proportionate to and not 
        exceeding the special benefit received by the properties from 
        the improvement.  The exemption from ad valorem taxation under 
        this subdivision does not apply to land that is leased by the 
        commission to any entity, public or private.  No possible use of 
        any of the properties in any manner different from their use 
        under sections 240A.01 to 240A.07 at the time may be considered 
        in determining the special benefit received by the properties.  
        Assessments are subject to confirmation by the commission, whose 
        determination of the benefits is subject to court review.  
        Notwithstanding the provisions of section 272.01, subdivision 2, 
        or 273.19, real or personal property leased by the commission to 
        another person for uses related to the purposes of sections 
        240A.01 to 240A.07 is exempt from taxation regardless of the 
        length of the lease. 
           Sec. 33.  Minnesota Statutes 2004, section 240A.03, is 
        amended by adding a subdivision to read: 
           Subd. 16.  [FINANCIAL REPORTS.] By January 15 of each year, 
        the commission must report to the chairs of the legislative 
        committees with jurisdiction over the commission and its 
        finances regarding the revenue received by the commission from 
        leases in the previous fiscal year.  The report must detail 
        revenue received from individual lessees and costs incurred by 
        the commission for maintenance and operation of the leased 
        property.  The report must also estimate the revenue from leases 
        for the current and following fiscal years. 
           Sec. 34.  [298.215] [IRON RANGE RESOURCES AND 
        REHABILITATION; EARLY SEPARATION INCENTIVE PROGRAM 
        AUTHORIZATION.] 
           (a) Notwithstanding any law to the contrary, the 
        commissioner of iron range resources and rehabilitation, in 
        consultation with the commissioner of employee relations, may 
        offer a targeted early separation incentive program for 
        employees of the commissioner who have attained the age of 60 
        years and have at least five years of allowable service credit 
        under chapter 352, or who have received credit for at least 30 
        years of allowable service under the provisions of chapter 352. 
           (b) The early separation incentive program may include one 
        or more of the following: 
           (1) employer-paid postseparation health, medical, and 
        dental insurance until age 65; and 
           (2) cash incentives that may, but are not required to be, 
        used to purchase additional years of service credit through the 
        Minnesota State Retirement System, to the extent that the 
        purchases are otherwise authorized by law. 
           (c) The commissioner of iron range resources and 
        rehabilitation shall establish eligibility requirements for 
        employees to receive an incentive. 
           (d) The commissioner of iron range resources and 
        rehabilitation, consistent with the established program 
        provisions under paragraph (b), and with the eligibility 
        requirements under paragraph (c), may designate specific 
        programs or employees as eligible to be offered the incentive 
        program. 
           (e) Acceptance of the offered incentive must be voluntary 
        on the part of the employee and must be in writing.  The 
        incentive may only be offered at the sole discretion of the 
        commissioner of iron range resources and rehabilitation. 
           (f) The cost of the incentive is payable solely by funds 
        made available to the commissioner of iron range resources and 
        rehabilitation by law, but only on prior approval of the 
        expenditures by a majority of the Iron Range Resources and 
        Rehabilitation Board. 
           (g) This section and section 298.216 are repealed June 30, 
        2006. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 35.  [298.216] [APPLICATION OF OTHER LAWS.] 
           Unilateral implementation of section 298.215 by the 
        commissioner of iron range resources and rehabilitation is not 
        an unfair labor practice under chapter 179A. 
           Sec. 36.  Minnesota Statutes 2004, section 349A.10, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LOTTERY OPERATIONS.] (a) The director shall 
        establish a lottery operations account in the lottery fund.  The 
        director shall pay all costs of operating the lottery, including 
        payroll costs or amounts transferred to the state treasury for 
        payroll costs, but not including lottery prizes, from the 
        lottery operating account.  The director shall credit to the 
        lottery operations account amounts sufficient to pay the 
        operating costs of the lottery. 
           (b) Except as provided in paragraph (e), the director may 
        not credit in any fiscal year thereafter amounts to the lottery 
        operations account which when totaled exceed 15 nine percent of 
        gross revenue to the lottery fund in that fiscal year.  In 
        computing total amounts credited to the lottery operations 
        account under this paragraph the director shall disregard 
        amounts transferred to or retained by lottery retailers as sales 
        commissions or other compensation. 
           (c) The director of the lottery may not expend after July 
        1, 1991, more than 2-3/4 percent of gross revenues in a fiscal 
        year for contracts for the preparation, publication, and 
        placement of advertising. 
           (d) Except as the director determines, the lottery is not 
        subject to chapter 16A relating to budgeting, payroll, and the 
        purchase of goods and services. 
           (e) In addition to the amounts credited to the lottery 
        operations account under paragraph (b), the director is 
        authorized, if necessary, to meet the current obligations of the 
        lottery and to credit up to 25 percent of an amount equal to the 
        average annual amount which was authorized to be credited to the 
        lottery operations account for the previous three fiscal years 
        but was not needed to meet the obligations of the lottery. 
           Sec. 37.  Minnesota Statutes 2004, section 359.01, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [APPLICATION.] The secretary of state shall 
        prepare the application form for a commission.  The form may 
        request personal information about the applicant, including, but 
        not limited to, relevant civil litigation, occupational license 
        history, and criminal background, if any.  For the purposes of 
        this section, "criminal background" includes, but is not limited 
        to, criminal charges, arrests, indictments, pleas, and 
        convictions.  
           Sec. 38.  [471.661] [OUT-OF-STATE TRAVEL.] 
           By January 1, 2006, the governing body of each statutory or 
        home rule charter city, county, school district, regional 
        agency, or other political subdivision, except a town, must 
        develop a policy that controls travel outside the state of 
        Minnesota for the applicable elected officials of the relevant 
        unit of government.  The policy must be approved by a recorded 
        vote and specify: 
           (1) when travel outside the state is appropriate; 
           (2) applicable expense limits; and 
           (3) procedures for approval of the travel. 
           The policy must be made available for public inspection 
        upon request and reviewed annually.  Subsequent changes to the 
        policy must be approved by a recorded vote. 
           Sec. 39.  [471.701] [SALARY DATA.] 
           A city or county with a population of more than 15,000 must 
        annually notify its residents of the positions and base salaries 
        of its three highest-paid employees.  This notice may be 
        provided on the homepage of the primary Web site maintained by 
        the political subdivision for a period of not less than 90 
        consecutive days, in a publication of the political subdivision 
        that is distributed to all residents in the political 
        subdivision, or as part of the annual notice of proposed 
        property taxes prepared under section 275.065. 
           Sec. 40.  Minnesota Statutes 2004, section 507.093, is 
        amended to read: 
           507.093 [STANDARDS FOR DOCUMENTS TO BE RECORDED OR FILED.] 
           (a) The following standards are imposed on documents to be 
        recorded with the county recorder or filed with the registrar of 
        titles: 
           (1) The document shall consist of one or more individual 
        sheets measuring no larger than 8.5 inches by 14 inches. 
           (2) The form of the document shall be printed, typewritten, 
        or computer generated in black ink and the form of the document 
        shall not be smaller than 8-point type.  
           (3) The document shall be on white paper of not less than 
        20-pound weight with no background color, images, or writing and 
        shall have a clear border of approximately one-half inch on the 
        top, bottom, and each side.  
           (4) The first page of the document shall contain a blank 
        space at the top measuring three inches, as measured from the 
        top of the page.  The right half to be used by the county 
        recorder for recording information or registrar of titles for 
        filing information and the left half to be used by the county 
        auditor or treasurer for certification.  
           (5) The title of the document shall be prominently 
        displayed at the top of the first page below the blank space 
        referred to in clause (4).  
           (6) No additional sheet shall be attached or affixed to a 
        page that covers up any information or printed part of the form. 
           (7) A document presented for recording or filing must be 
        sufficiently legible to reproduce a readable copy using the 
        county recorder's or registrar of title's current method of 
        reproduction.  
           (b) The standards in this paragraph (a) do not apply to a 
        document that is recorded or filed as part of a pilot project 
        for the electronic filing of real estate documents implemented 
        by the task force created in Laws 2000, chapter 391, and 
        continued by standards established by the Electronic Real Estate 
        Recording Task Force created under section 507.094.  A county 
        that participated in the pilot project for the electronic filing 
        of real estate documents under the task force created in Laws 
        2000, chapter 391, may continue to record or file documents 
        electronically, if: 
           (1) the county complies with standards adopted by that task 
        force; and 
           (2) the county uses software that was validated by that 
        task force.  
           (c) A county that did not participate in the pilot project 
        may record or file a real estate document electronically, if: 
           (i) the document to be recorded or filed is of a type 
        included in the pilot project for the electronic filing of real 
        estate documents under the task force created in Laws 2000, 
        chapter 391; 
           (ii) the county complies with the standards adopted by the 
        task force; 
           (iii) the county uses software that was validated by the 
        task force; and 
           (iv) the task force created under section 507.094 votes to 
        accept a written certification of compliance with paragraph (b), 
        clause (2), of this section by the county board and county 
        recorder of the county to implement electronic filing under this 
        section.  
           (b) The recording or filing fee for a document that does 
        not conform to the standards in paragraph (a) shall be increased 
        as provided in sections 357.18, subdivision 5; 508.82; and 
        508A.82. 
           (c) The recorder or registrar shall refund the recording or 
        filing fee to the applicant if the real estate documents are not 
        filed or registered within 30 days after receipt, or as 
        otherwise provided by section 386.30. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment.  
           Sec. 41.  [507.094] [ELECTRONIC REAL ESTATE RECORDING TASK 
        FORCE.] 
           Subdivision 1.  [CREATION; MEMBERSHIP.] (a) The Electronic 
        Real Estate Recording Task Force established under this section 
        shall continue the work of the task force established under Laws 
        2000, chapter 391, to implement and make recommendations for 
        implementation of electronic filing and recording of real estate 
        documents. 
           (b) The task force consists of 17 members.  The secretary 
        of state is a member and the chair of the task force and shall 
        convene the first meeting of the task force.  Members who are 
        appointed under this section shall serve for a term of three 
        years beginning July 1, 2005.  The task force must include: 
           (1) four county government officials appointed by the 
        Association of County Officers, including two county recorders, 
        one county auditor, and one county treasurer; 
           (2) two county board members appointed by the Association 
        of Minnesota Counties, including one board member from within 
        the seven-county metropolitan area and one board member from 
        outside the seven-county metropolitan area; 
           (3) seven members from the private sector recommended by 
        their industries and appointed by the governor, including 
        representatives of: 
           (i) real estate attorneys, real estate agents; 
           (ii) mortgage companies, and other real estate lenders; and 
           (iii) technical and industry experts in electronic commerce 
        and electronic records management and preservation who are not 
        vendors of real estate related services to counties; 
           (4) a nonvoting representative selected by the Minnesota 
        Historical Society; and 
           (5) two representatives of title companies. 
           (c) The task force may refer items to subcommittees.  The 
        chair shall recommend and the task force shall appoint the 
        membership of a subcommittee.  An individual may be appointed to 
        serve on a subcommittee without serving on the task force. 
           Subd. 2.  [STUDY AND RECOMMENDATIONS.] (a) The task force 
        shall continue the work of the task force created by Laws 2000, 
        chapter 391, and make recommendations regarding implementation 
        of a system for electronic filing and recording of real estate 
        documents and shall consider: 
           (1) technology and computer needs; 
           (2) legal issues such as authenticity, security, timing and 
        priority of recordings, and the relationship between electronic 
        and paper recorder systems; 
           (3) a timetable and plan for implementing electronic 
        recording, considering types of documents and entities using 
        electronic recording; 
           (4) permissive versus mandatory systems; and 
           (5) other relevant issues identified by the task force. 
           The task force shall review the Uniform Electronic 
        Recording Act as drafted by the National Conference of 
        Commissioners on Uniform State Laws and the Property Records 
        Industry Association position statement on the Uniform Real 
        Property Electronic Recording Act and recommend alternative 
        structures for the permanent Commission on Electronic Real 
        Estate Recording Standards. 
           (b) The task force may commence establishing standards for 
        the electronic recording of the remaining residential real 
        estate deed and mortgage documents and establish pilot projects 
        to complete the testing and functions of the task force 
        established in Laws 2000, chapter 391, after considering 
        national standards from the Mortgage Industry Standards 
        Maintenance Organization, the Property Records Industry 
        Association, or other recognized national groups. 
           (c) The task force shall submit a report to the legislature 
        by January 15 of each year during its existence reporting on the 
        progress toward the goals provided in this subdivision. 
           Subd. 3.  [DONATIONS; REIMBURSEMENT.] The task force may 
        accept donations of money or resources, including loaned 
        employees or other services.  The donations are appropriated to 
        the task force and must be under the sole control of the task 
        force.  
           Subd. 4.  [EXPIRATION.] This section expires June 30, 2008. 
           [EFFECTIVE DATE.] This section is effective July 1, 2005. 
           Sec. 42.  Minnesota Statutes 2004, section 507.24, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ORIGINAL SIGNATURES REQUIRED.] (a) Unless 
        otherwise provided by law, an instrument affecting real estate 
        that is to be recorded as provided in this section or other 
        applicable law must contain the original signatures of the 
        parties who execute it and of the notary public or other officer 
        taking an acknowledgment.  However, a financing statement that 
        is recorded as a filing pursuant to section 336.9-502(b) need 
        not contain:  (1) the signatures of the debtor or the secured 
        party; or (2) an acknowledgment.  
           (b) Any electronic instruments, including signatures and 
        seals, affecting real estate may only be recorded as part of a 
        pilot project for the electronic filing of real estate documents 
        implemented by the task force created in Laws 2000, chapter 
        391., or by the Electronic Real Estate Recording Task Force 
        created under section 507.094.  A county that participated in 
        the pilot project for the electronic filing of real estate 
        documents under the task force created in Laws 2000, chapter 
        391, may continue to record or file documents electronically, if:
           (1) the county complies with standards adopted by the task 
        force; and 
           (2) the county uses software that was validated by the task 
        force. 
        A county that did not participate in the pilot project may 
        record or file a real estate document electronically, if: 
           (i) the document to be recorded or filed is of a type 
        included in the pilot project for the electronic filing of real 
        estate documents under the task force created in Laws 2000, 
        chapter 391; 
           (ii) the county complies with the standards adopted by the 
        task force; 
           (iii) the county uses software that was validated by the 
        task force; and 
           (iv) the task force created under section 507.094, votes to 
        accept a written certification of compliance with paragraph (b), 
        clause (2), of this section by the county board and county 
        recorder of the county to implement electronic filing under this 
        section.  
           (c) Notices filed pursuant to section 168A.141, 
        subdivisions 1 and 3, need not contain an acknowledgment. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 43.  Laws 1998, chapter 404, section 15, subdivision 
        2, as amended by Laws 2005, chapter 20, article 1, section 40, 
        is amended to read: 
        Subd. 2.  National Sports Center                      4,800,000 
        $1,700,000 is to purchase and develop 
        land adjacent to the National Sports 
        Center in Blaine for use as athletic 
        fields. 
        $3,100,000 is to develop the National 
        Children's Golf Course.  The primary 
        purpose of the National Children's Golf 
        Course is to serve youth of 18 years 
        and younger.  Market rates must be 
        charged for adult golf. 
        The Minnesota Amateur Sports Commission 
        may lease up to 20 percent of the area 
        of the land purchased with money from 
        the general fund appropriations in this 
        subdivision for a term of up to 30 
        years to one or more governmental or 
        private entities for any use by the 
        lessee, whether public or private, so 
        long as the use provides some benefit 
        to amateur sports.  The commission must 
        submit proposed leases for the land 
        described in this subdivision to the 
        chairs of the legislative committees 
        with jurisdiction over state government 
        policy and finance for review at least 
        30 days before the leases may be 
        entered into by the commission.  Up to 
        $300,000 of lease payments received by 
        the commission are each fiscal year is 
        appropriated to the commission for the 
        purposes specified in Minnesota 
        Statutes, chapter 240A.  The land 
        purchased from the general fund 
        appropriations may be used for any 
        amateur sport. 
           [EFFECTIVE DATE.] This section is effective retroactively 
        on the effective date of Laws 2005, chapter 20, article 1, 
        section 40. 
           Sec. 44.  [BUILDING LEASE.] 
           Notwithstanding any provision of Minnesota Statutes, 
        section 16B.24, or other law or rule to the contrary, the 
        commissioner of administration may, without approval of the 
        State Executive Council, enter into a lease of up to ten years 
        with a private tenant for use of the state-owned building at 168 
        Aurora Avenue in the city of St. Paul as a child care and 
        after-school activity facility.  If leased to a faith-based 
        organization, the program may not promote any particular faith 
        and must operate in a nondiscriminatory manner.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 45.  [SALE OF STATE LAND.] 
           Subdivision 1.  [STATE LAND SALES.] The commissioner of 
        administration shall coordinate with the head of each department 
        or agency having control of state-owned land to identify and 
        sell at least $6,440,000 of state-owned land.  Sales should be 
        completed according to law and as provided in this section as 
        soon as practicable but no later than June 30, 2007.  
        Notwithstanding Minnesota Statutes, sections 16B.281 and 
        16B.282, 94.09 and 94.10, or any other law to the contrary, the 
        commissioner may offer land for public sale by only providing 
        notice of lands or an offer of sale of lands to state 
        departments or agencies, the University of Minnesota, cities, 
        counties, towns, school districts, or other public entities. 
           Subd. 2.  [ANTICIPATED SAVINGS.] Notwithstanding Minnesota 
        Statutes, section 94.16, subdivision 3, or other law to the 
        contrary, the amount of the proceeds from the sale of land under 
        this section that exceeds the actual expenses of selling the 
        land must be deposited in the general fund, except as otherwise 
        provided by the commissioner of finance.  Notwithstanding 
        Minnesota Statutes, section 94.11 or 16B.283, the commissioner 
        of finance may establish the timing of payments for land 
        purchased under this section.  If the total of all money 
        deposited into the general fund from the proceeds of the sale of 
        land under this section is anticipated to be less than 
        $6,440,000, the governor must allocate the amount of the 
        difference as reductions to general fund operating expenditures 
        for other executive agencies for the biennium ending June 30, 
        2007.  
           Subd. 3.  [SALE OF STATE LANDS REVOLVING LOAN 
        FUND.] $290,000 is appropriated from the general fund in fiscal 
        year 2006 to the commissioner of administration for purposes of 
        paying the actual expenses of selling state-owned lands to 
        achieve the anticipated savings required in this section.  From 
        the gross proceeds of land sales under this section, the 
        commissioner of administration must cancel the amount of the 
        appropriation in this subdivision to the general fund by June 
        30, 2007. 
           Sec. 46.  [FORD BUILDING.] 
           The Ford Building at 117 University Avenue in St. Paul may 
        not be demolished during the biennium ending June 30, 2007.  By 
        January 15, 2006, the commissioner of administration, in 
        consultation with interested legislators, private sector real 
        estate professionals, historic preservation specialists, and 
        representatives of the city of St. Paul, neighboring property, 
        and St. Paul neighborhood associations, must report to the 
        legislature with recommendations regarding potential means of 
        preserving and using the Ford Building.  The report must include:
           (1) availability of potential lessees for the building; 
           (2) constraints on leasing the building, including the 
        requirement to pay off any state general obligation bonds 
        previously used in maintaining or rehabilitating the building; 
        and 
           (3) the cost of restoring and rehabilitating the building, 
        and the feasibility of various means of paying these costs, 
        including potential use of revenue bonds. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 47.  [STATE HEALTH CARE PURCHASING AUTHORITY.] 
           Subdivision 1.  [PURCHASING AUTHORITY CREATED.] By December 
        15, 2005, the commissioner of employee relations, in 
        consultation with the commissioners of health, human services, 
        labor and industry, corrections, commerce, and administration 
        and the Minnesota Comprehensive Health Association board of 
        directors, may enter into interagency agreements regarding the 
        formation of the Minnesota Health Care Purchasing Authority for 
        the purpose of implementing a unified strategy and joint 
        purchasing of health care services for the state of Minnesota.  
        The strategy shall include implementing a process that examines 
        the health care purchasing decisions and coverage in terms of 
        cost and medical efficacy based on reliable research evidence to 
        ensure access to appropriate and necessary health care.  By 
        December 15, 2005, the commissioners shall submit to the 
        legislature a report and draft legislation for the creation of 
        the purchasing authority responsible for all state purchasing of 
        health care.  
           Subd. 2.  [PRINCIPLES OF STATE PURCHASING.] The purchasing 
        authority shall prepare and submit to the governor and 
        legislature an annual report and plan for the unified purchasing 
        of health care services.  The plan must:  
           (1) promote personal choice and responsibility; 
           (2) encourage and promote better health of patients and 
        residents of the state; 
           (3) provide incentives to privately based health plans and 
        health care delivery systems to improve efficiency and quality; 
           (4) use community standards and measurement methods for 
        determining the value of specific health care services based on 
        quality and performance; and 
           (5) separate the health care purchasing functions of state 
        government from those activities relating to regulation and 
        delivery of services, but require consistent use of uniform 
        quality and performance standards and methods for purchasing, 
        regulation, and delivery of health care services.  
           Subd. 3.  [PURCHASING AND COVERAGE GUIDELINES.] The 
        purchasing authority shall convene a panel of health care policy 
        experts and health care providers to establish a process to 
        select evidence-based guidelines based on sound research 
        evidence and implement an integrated approach using these 
        guidelines for purchasing decisions and coverage design. 
           Subd. 4.  [PUBLIC AND PRIVATE PURCHASERS.] (a) The 
        purchasing authority shall prepare and submit to the governor 
        and legislature by December 15, 2005, a plan for permitting 
        public employers, including school districts, cities, counties, 
        and other governmental entities, to purchase a secure benefit 
        set with the state purchasing authority.  The secure benefit set 
        must include the services described under subdivision 6. 
           (b) Notwithstanding any laws to the contrary, the 
        commissioner of employee relations may expand the range of 
        health coverage options available to purchase under the public 
        employees insurance program established under Minnesota 
        Statutes, section 43A.316, including the option to purchase the 
        secure benefit set as defined under subdivision 6.  Under this 
        option, public employers may purchase health coverage for their 
        employees through the public employees insurance program 
        beginning July 1, 2006.  
           (c) The purchasing authority shall include in the plan 
        described in paragraph (a) recommendations for: 
           (1) a process for permitting nursing homes and other 
        long-term care providers to purchase the secure benefit set with 
        the assistance of the state health care purchasing authority as 
        part of a separate risk pool; and 
           (2) a process for permitting individuals to purchase the 
        secure benefit set as part of a separate risk pool through the 
        state health care purchasing authority beginning January 1, 2009.
           Subd. 5.  [COORDINATION AND COMMON STANDARDS FOR STATE 
        PURCHASING AND REGULATION.] The purchasing authority, in 
        consultation with all state agencies, boards, and commissioners 
        that have responsibility for purchasing or for regulating 
        individuals and organizations that provide health coverage or 
        deliver health care services, shall prepare and submit to the 
        governor and legislature by December 15, 2005, a report and 
        draft legislation that will: 
           (1) require all state purchasing and regulatory 
        requirements to use common standards and measurement methods for 
        quality and performance; and 
           (2) provide for the coordination of health care purchasing 
        strategies and activities administered by the state, including, 
        but not limited to, the state employees group insurance plan, 
        the public employees insurance program, purchasing activities 
        for public and private employers and individuals established 
        under subdivision 4, and health care programs administered by 
        the commissioner of human services or the commissioner of health.
           Subd. 6.  [SECURE BENEFIT SET DEVELOPMENT.] The purchasing 
        authority, in consultation with a panel of health care policy 
        experts, shall define a secure benefit set that includes 
        coverage for preventive health services, as specified in 
        preventive services guidelines for children and adults developed 
        by the Institute for Clinical Systems Improvement, prescription 
        drug coverage, and catastrophic coverage.  Nothing in this 
        section authorizes the purchasing authority to change the 
        benefits covered by the medical assistance, MinnesotaCare, or 
        general assistance medical care programs to the extent these 
        benefits are specified in state or federal law. 
           Subd. 7.  [SPECIAL POPULATIONS.] In developing a plan for 
        the unified purchasing of health care services and a secure 
        benefit set, the purchasing authority must take into account the 
        needs of special populations, including, but not limited to, 
        persons who are elderly or disabled and persons with chronic 
        conditions.  
           Subd. 8.  [COST AND QUALITY DISCLOSURE.] The purchasing 
        authority, in cooperation with organizations representing 
        consumers, employers, physicians and other health professionals, 
        hospitals, long-term care facilities, health plan companies, 
        quality improvement organizations, research and education 
        institutions, and other appropriate constituencies, shall 
        identify and contract with a private, nonprofit organization to 
        serve as a statewide source of comparative information on health 
        care costs and quality.  
           Sec. 48.  [TRAINING SERVICES.] 
           During the biennium ending June 30, 2007, state executive 
        branch agencies must consider using services provided by 
        Government Training Services before contracting with other 
        outside vendors for similar services. 
           Sec. 49.  [STUDY OF WATER AND SEWER BILLING.] 
           The director of the Legislative Coordinating Commission 
        must provide administrative support to a working group to study 
        issues relating to collection of delinquent water and sewer 
        bills from owners, lessees, and occupants of rental property.  
        The group consists of the following members: 
           (1) two representatives of cities; 
           (2) two representatives of residential rental property 
        owners; 
           (3) one representative of tenants; 
           (4) one legislator from the majority caucus of the house of 
        representatives appointed by the speaker, and one legislator 
        from the minority caucus of the house appointed by the minority 
        leader; 
           (5) one representative of the majority and minority 
        caucuses of the senate, appointed by the senate subcommittee on 
        committees; and 
           (6) one public member appointed by the speaker of the house 
        of representatives and one public member appointed by the 
        majority leader of the senate. 
           Members specified in clauses (1) to (3) must be appointed 
        jointly by the speaker of the house of representatives and the 
        majority leader of the senate. 
           The working group must report findings and recommendations 
        to the legislature by January 15, 2006.  This section expires on 
        the day following the date the working group submits its report. 
           Sec. 50.  [PORTRAITS.] 
           The Capitol Area Architectural and Planning Board, in 
        consultation with the Minnesota Historical Society, must request 
        the Smithsonian Institution to extend the period during which 
        the portraits of Julia Finch Gilbert and Cass Gilbert are 
        displayed in the Capitol building.  In negotiating an extension 
        of the loan period, the board must request that the portraits 
        remain on display in the Capitol when they are not being 
        publicly displayed elsewhere, but must recognize that it is 
        desirable for the portraits to be displayed in other buildings 
        designed by Cass Gilbert, in conjunction with centennial 
        celebrations for those buildings.  
           Sec. 51. [COYA KNUTSON MEMORIAL.] 
           The commissioner of administration shall establish a 
        memorial in the Capitol building honoring Coya Knutson.  The 
        commissioner, with the assistance and approval of the Capitol 
        Area Architectural and Planning Board, shall select an 
        appropriate site.  The commissioner may accept donations from 
        nonstate sources for the memorial, and this money is 
        appropriated to the commissioner for purposes of the memorial. 
           Sec. 52.  [REPEALER.] 
           (a) Minnesota Statutes 2004, sections 3.9222; 16A.151, 
        subdivision 5; 16A.30; and 16B.52, are repealed.  
           (b) Minnesota Statutes 2004, section 471.68, subdivision 3, 
        is repealed effective July 1, 2006. 

                                   ARTICLE 3 
                               PUBLIC EMPLOYMENT
           Section 1.  Minnesota Statutes 2004, section 43A.23, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL.] The commissioner is authorized 
        to request bids from carriers or to negotiate with carriers and 
        to enter into contracts with carriers parties which in the 
        judgment of the commissioner are best qualified to underwrite 
        and provide service to the benefit plans.  Contracts entered 
        into with carriers are not subject to the requirements of 
        sections 16C.16 to 16C.19.  The commissioner may negotiate 
        premium rates and coverage provisions with all carriers licensed 
        under chapters 62A, 62C, and 62D.  The commissioner may also 
        negotiate reasonable restrictions to be applied to all carriers 
        under chapters 62A, 62C, and 62D.  Contracts to underwrite the 
        benefit plans must be bid or negotiated separately from 
        contracts to service the benefit plans, which may be awarded 
        only on the basis of competitive bids.  The commissioner shall 
        consider the cost of the plans, conversion options relating to 
        the contracts, service capabilities, character, financial 
        position, and reputation of the carriers, and any other factors 
        which the commissioner deems appropriate.  Each benefit contract 
        must be for a uniform term of at least one year, but may be made 
        automatically renewable from term to term in the absence of 
        notice of termination by either party.  The commissioner shall, 
        to the extent feasible, make hospital and medical benefits 
        available from at least one carrier licensed to do business 
        pursuant to each of chapters 62A, 62C, and 62D.  The 
        commissioner need not provide health maintenance organization 
        services to an employee who resides in an area which is not 
        served by a licensed health maintenance organization.  The 
        commissioner may refuse to allow a health maintenance 
        organization to continue as a carrier.  The commissioner may 
        elect not to offer all three types of carriers if there are no 
        bids or no acceptable bids by that type of carrier or if the 
        offering of additional carriers would result in substantial 
        additional administrative costs.  A carrier licensed under 
        chapter 62A is exempt from the taxes imposed by chapter 297I on 
        premiums paid to it by the state. 
           All self-insured hospital and medical service products must 
        comply with coverage mandates, data reporting, and consumer 
        protection requirements applicable to the licensed carrier 
        administering the product, had the product been insured, 
        including chapters 62J, 62M, and 62Q.  Any self-insured products 
        that limit coverage to a network of providers or provide 
        different levels of coverage between network and nonnetwork 
        providers shall comply with section 62D.123 and geographic 
        access standards for health maintenance organizations adopted by 
        the commissioner of health in rule under chapter 62D. 
           Sec. 2.  [43A.346] [POSTRETIREMENT OPTION.] 
           Subdivision 1.  [DEFINITION.] For purposes of this section, 
        "state employee" means a person currently occupying a civil 
        service position in the executive branch of state government, 
        the Minnesota State Retirement System, or the Office of the 
        Legislative Auditor, or a person employed by the Metropolitan 
        Council. 
           Subd. 2.  [ELIGIBILITY.] This section applies to a state or 
        Metropolitan Council employee who: 
           (1) for at least the five years immediately preceding 
        separation under clause (2), has been regularly scheduled to 
        work 1,044 or more hours per year in a position covered by a 
        pension plan administered by the Minnesota State Retirement 
        System or the Public Employees Retirement Association; 
           (2) terminates state or Metropolitan Council employment; 
           (3) at the time of termination under clause (2), meets the 
        age and service requirements necessary to receive an unreduced 
        retirement annuity from the plan and satisfies requirements for 
        the commencement of the retirement annuity or, for an employee 
        under the unclassified employees retirement plan, meets the age 
        and service requirements necessary to receive an unreduced 
        retirement annuity from the plan and satisfies requirements for 
        the commencement of the retirement annuity or elects a lump-sum 
        payment; and 
           (4) agrees to accept a postretirement option position with 
        the same or a different appointing authority, working a reduced 
        schedule that is both (i) a reduction of at least 25 percent 
        from the employee's number of regularly scheduled work hours; 
        and (ii) 1,044 hours or less in state or Metropolitan Council 
        service. 
           Subd. 3.  [UNCLASSIFIED SERVICE.] Notwithstanding any law 
        to the contrary, state postretirement option positions shall be 
        in the unclassified service but shall not be covered by the 
        Minnesota State Retirement System unclassified employees plan.  
           Subd. 4.  [ANNUITY REDUCTION NOT APPLICABLE.] 
        Notwithstanding any law to the contrary, when an eligible state 
        employee in a postretirement option position under this section 
        commences receipt of the annuity, the provisions of section 
        352.115, subdivision 10, or 353.37 governing annuities of 
        reemployed annuitants, shall not apply for the duration of 
        employment in the position. 
           Subd. 5.  [APPOINTING AUTHORITY DISCRETION.] The appointing 
        authority has sole discretion to determine if and the extent to 
        which a postretirement option position under this section is 
        available to a state employee.  Any offer of such a position 
        must be made in writing to the employee by the appointing 
        authority on a form prescribed by the Department of Employee 
        Relations and the Minnesota State Retirement System or the 
        Public Employees Retirement Association.  The appointing 
        authority may not require a person to waive any rights under a 
        collective bargaining agreement or unrepresented employee 
        compensation plan as a condition of participation. 
           Subd. 6.  [DURATION.] Postretirement option employment 
        shall be for an initial period not to exceed one year.  During 
        that period, the appointing authority may not modify the 
        conditions specified in the written offer without the employee's 
        agreement, except as required by law or by the collective 
        bargaining agreement or compensation plan applicable to the 
        employee.  At the end of the initial period, the appointing 
        authority has sole discretion to determine if the offer of a 
        postretirement option position will be renewed, renewed with 
        modifications, or terminated.  Postretirement option employment 
        may be renewed for periods of up to one year, not to exceed a 
        total duration of five years.  No person shall be employed in 
        one or a combination of postretirement option positions under 
        this section for a total of more than five years. 
           Subd. 7.  [COPY TO FUND.] The appointing authority shall 
        provide the Minnesota State Retirement System or the Public 
        Employees Retirement Association with a copy of the offer, the 
        employee's acceptance of the terms, and any subsequent renewal 
        agreement. 
           Subd. 8.  [NO SERVICE CREDIT.] Notwithstanding any law to 
        the contrary, a person may not earn service credit in the 
        Minnesota State Retirement System or the Public Employees 
        Retirement Association for employment covered under this 
        section, and employer contributions and payroll deductions for 
        the retirement fund must not be made based on earnings of a 
        person working under this section.  No change shall be made to a 
        monthly annuity or retirement allowance based on employment 
        under this section. 
           Subd. 9.  [INSURANCE CONTRIBUTION.] Notwithstanding any law 
        to the contrary, the appointing authority must make an employer 
        insurance contribution for a person who is employed in a 
        postretirement option position under this section and who is not 
        receiving any other state-paid or Metropolitan Council-paid 
        employer insurance contribution.  The amount of the contribution 
        must be equal to the percent time worked in the postretirement 
        option position (hours scheduled to be worked annually divided 
        by 2,088) times 1.5 times the full employer contribution for 
        employee-only health and dental coverage.  The appointing 
        authority must contribute that amount to a health reimbursement 
        arrangement. 
           Subd. 10.  [SUBSEQUENT EMPLOYMENT.] If a person has been in 
        a postretirement option position and accepts any other position 
        in state or Metropolitan Council-paid service, in the subsequent 
        state or Metropolitan Council-paid employment the person may not 
        earn service credit in the Minnesota State Retirement System or 
        Public Employees Retirement Association, no employer 
        contributions or payroll deductions for the retirement fund 
        shall be made, and the provisions of section 352.115, 
        subdivision 10, or section 353.37, shall apply. 
           Sec. 3.  [VOLUNTARY HOUR REDUCTION PLAN.] 
           (a) This section applies to a state employee who: 
           (1) on the effective date of this section is regularly 
        scheduled to work 1,044 or more hours a year in a position 
        covered by a pension plan administered by the Minnesota state 
        retirement system; and 
           (2) enters into an agreement with the appointing authority 
        to work a reduced schedule of 1,044 hours or less in the covered 
        position. 
           (b) Notwithstanding any law to the contrary, for service 
        under an agreement entered into under paragraph (a), 
        contributions may be made to the applicable plan of the 
        Minnesota state retirement system as if the employee had not 
        reduced hours.  The employee must pay the additional employee 
        contributions and the employer must pay the additional employer 
        contributions necessary to bring the service credit and salary 
        up to the level prior to the voluntary reduction in hours.  
        Contributions must be made in a time and manner prescribed by 
        the executive director of the Minnesota state retirement system. 
           (c) The amount of hours worked, the work schedule, and the 
        duration of the voluntary hour reduction must be mutually agreed 
        to by the employee and the appointing authority.  The appointing 
        authority may not require a person to waive any rights under a 
        collective bargaining agreement as a condition of participation 
        under this section.  The appointing authority has sole 
        discretion to determine if and the extent to which voluntary 
        hour reduction under this section is available to an employee.  
           (d) A person who works under this section is a member of 
        the appropriate bargaining unit; is covered by the appropriate 
        collective bargaining contract or compensation plan; and is 
        eligible for health care coverage as provided in the collective 
        bargaining contract or compensation plan. 
           (e) An agreement under this section may apply only to work 
        through June 30, 2007. 
           Sec. 4.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
           (a) Appointing authorities in state government may allow 
        each employee to take unpaid leaves of absence for up to 1,040 
        hours between July 1, 2005, and June 30, 2007.  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, if 
        payments are made under paragraph (b), accrue service credit and 
        credited salary in the state retirement plans as if the employee 
        had actually been employed during the time of leave.  An 
        employee covered by the unclassified plan may voluntarily make 
        the employee contributions to the unclassified plan during the 
        leave of absence.  If the employee makes these contributions, 
        the appointing authority must make the employer contribution.  
        If the leave of absence is for one full pay period or longer, 
        any holiday pay shall be included in the first payroll warrant 
        after return from the leave of absence.  The appointing 
        authority shall attempt to grant requests for the unpaid leaves 
        of absence consistent with the need to continue efficient 
        operation of the agency.  However, each appointing authority 
        shall retain discretion to grant or refuse to grant requests for 
        leaves of absence and to schedule and cancel leaves, subject to 
        the applicable provisions of collective bargaining agreements 
        and compensation plans. 
           (b) To receive eligible service credit and credited salary 
        in a defined benefit plan, the member shall pay an amount equal 
        to the applicable employee contribution rates.  If an employee 
        pays the employee contribution for the period of the leave under 
        this section, the appointing authority must pay the employer 
        contribution.  The appointing authority may, at its discretion, 
        pay the employee contributions.  Contributions must be made in a 
        time and manner prescribed by the executive director of the 
        applicable pension plan. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 5.  [LABOR AGREEMENTS AND COMPENSATION PLANS.] 
           Subdivision 1.  [AMERICAN FEDERATION OF STATE, COUNTY, AND 
        MUNICIPAL EMPLOYEES.] The arbitration award and labor agreement 
        between the state of Minnesota and the American Federation of 
        State, County, and Municipal Employees, unit 8, approved by the 
        Legislative Coordinating Commission Subcommittee on Employee 
        Relations on June 14, 2004, is ratified. 
           Subd. 2.  [MINNESOTA LAW ENFORCEMENT ASSOCIATION; 
        ARBITRATION AWARD.] The arbitration award between the state of 
        Minnesota and the Minnesota Law Enforcement Association, 
        approved by the Legislative Coordinating Commission Subcommittee 
        on Employee Relations on June 14, 2004, is ratified. 
           Subd. 3.  [HIGHER EDUCATION SERVICES OFFICE; COMPENSATION 
        PLAN.] The compensation plan for unrepresented employees of the 
        Higher Education Services Office, approved by the Legislative 
        Coordinating Commission Subcommittee on Employee Relations on 
        June 14, 2004, is ratified. 
           Subd. 4.  [MINNESOTA LAW ENFORCEMENT ASSOCIATION; 
        BARGAINING AGREEMENT.] The collective bargaining agreement 
        between the state of Minnesota and the Minnesota Law Enforcement 
        Association, submitted to the Legislative Coordinating 
        Commission Subcommittee on Employee Relations on September 29, 
        2004, and implemented after 30 days on October 30, 2004, is 
        ratified. 
           Subd. 5.  [INTER FACULTY ORGANIZATION.] The collective 
        bargaining agreement between the state of Minnesota and the 
        Inter Faculty Organization, submitted to the Legislative 
        Coordinating Commission Subcommittee on Employee Relations on 
        September 29, 2004, and implemented after 30 days on October 29, 
        2004, is ratified. 
           Subd. 6.  [MINNESOTA NURSES ASSOCIATION.] The arbitration 
        award and the collective bargaining agreement between the state 
        of Minnesota and the Minnesota Nurses Association, approved by 
        the Legislative Coordinating Commission Subcommittee on Employee 
        Relations on December 20, 2004, is ratified. 
           Subd. 7.  [TEACHERS RETIREMENT ASSOCIATION.] The proposal 
        to increase the salary of the executive director of the Teachers 
        Retirement Association, as modified and approved by the 
        Legislative Coordinating Commission Subcommittee on Employee 
        Relations on December 20, 2004, is ratified. 
           Subd. 8.  [MINNESOTA STATE RETIREMENT SYSTEM.] The proposal 
        to increase the salary of the executive director of the 
        Minnesota State Retirement System, as modified and approved by 
        the Legislative Coordinating Commission Subcommittee on Employee 
        Relations on December 20, 2004, is ratified. 
           Subd. 9.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION.] The 
        proposal to increase the salary of the executive director of the 
        Public Employees Retirement Association, as modified and 
        approved by the Legislative Coordinating Commission Subcommittee 
        on Employee Relations on December 20, 2004, is ratified. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 

                                   ARTICLE 4 
                             MILITARY AND VETERANS
           Section 1.  Minnesota Statutes 2004, section 190.16, is 
        amended by adding a subdivision to read: 
           Subd. 6a.  [RENTAL OF CAMP RIPLEY FACILITIES.] The adjutant 
        general or the adjutant general's designee may rent buildings or 
        other facilities at Camp Ripley to persons under terms and 
        conditions specified by the adjutant general or designee.  
        Subject to any prohibitions or restrictions in any agreement 
        between the United States and the state of Minnesota, proceeds 
        of rentals under this subdivision must be applied as follows: 
           (1) payment of increased utilities, maintenance, or other 
        costs directly attributable to the rental; 
           (2) other operating and maintenance or repair costs for the 
        building or facility being rented; and 
           (3) maintenance and improvement of buildings or other 
        facilities at Camp Ripley. 
        Rentals under this subdivision must be made under terms and 
        conditions that do not conflict with the use of Camp Ripley for 
        military purposes. 
           Sec. 2.  Minnesota Statutes 2004, section 192.19, is 
        amended to read: 
           192.19 [RETIRED MEMBERS MAY BE ORDERED TO ACTIVE DUTY.] 
           The commander-in-chief or the adjutant general may assign 
        officers, warrant officers, and enlisted personnel on the 
        retired list, with their consent, to temporary active service in 
        recruiting, upon courts-martial, courts of inquiry and boards, 
        to staff duty not involving service with troops, or in charge of 
        a military reservation left temporarily without officers.  Such 
        personnel while so assigned shall receive the full pay and 
        allowances of their grades at time of retirement, except that 
        the commander-in-chief or the adjutant general may authorize pay 
        and allowances in a higher grade when it is considered 
        appropriate based on special skills or experience of the person 
        being assigned to temporary active service. 
           Sec. 3.  Minnesota Statutes 2004, section 192.261, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REINSTATEMENT.] Except as otherwise hereinafter 
        provided, upon the completion of such service such officer or 
        employee shall be reinstated in the public position, which was 
        held at the time of entry into such service, or a public 
        position of like seniority, status, and pay if such is available 
        at the same salary which the officer or employee would have 
        received if the leave had not been taken, upon the following 
        conditions:  (1) that the position has not been abolished or 
        that the term thereof, if limited, has not expired; (2) that the 
        officer or employee is not physically or mentally disabled from 
        performing the duties of such position; (3) that the officer or 
        employee makes written application for reinstatement to the 
        appointing authority within 90 days after termination of such 
        service, or 90 days after discharge from hospitalization or 
        medical treatment which immediately follows the termination of, 
        and results from, such service; provided such application shall 
        be made within one year and 90 days after termination of such 
        service notwithstanding such hospitalization or medical 
        treatment; (4) that the officer or employee submits an honorable 
        discharge or other form of release by proper authority 
        indicating that the officer's or employee's military or naval 
        service was satisfactory.  Upon such reinstatement the officer 
        or employee shall have the same rights with respect to accrued 
        and future seniority status, efficiency rating, vacation, sick 
        leave, and other benefits as if that officer or employee had 
        been actually employed during the time of such leave.  The 
        officer or employee reinstated under this section is entitled to 
        vacation and sick leave with pay as provided in any applicable 
        civil service rules, collective bargaining agreement, or 
        compensation plan, and accumulates vacation and sick leave from 
        the time the person enters active military service until the 
        date of reinstatement without regard to any otherwise applicable 
        limits on civil service rules limiting the number of days which 
        may be accumulated.  No officer or employee so reinstated shall 
        be removed or discharged within one year thereafter except for 
        cause, after notice and hearing; but this shall not operate to 
        extend a term of service limited by law. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment and applies to any public officer or 
        public employee serving in active military service on or after 
        September 11, 2001. 
           Sec. 4.  Minnesota Statutes 2004, 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 postsecondary 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, (c) Notwithstanding paragraph (b), clause (1), 
        for a person who: 
           (1) has satisfactorily completed the person's service 
        contract in the Minnesota National Guard or the portion of it 
        involving selective reserve status, for which any part of that 
        service was spent serving honorably in federal active service or 
        federally funded state active service since September 11, 2001, 
        the person's eligibility is extended for a period of two years, 
        plus an amount of time equal to the duration of that person's 
        active service, subject to the credit hours limit in paragraph 
        (g); or 
           (2) has served honorably in the Minnesota National Guard 
        and has been separated or discharged from that organization due 
        to a service-connected injury, disease, or disability, the 
        eligibility period is extended for eight years beyond the date 
        of separation, subject to the credit hours limit in paragraph 
        (g). 
           (d) 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, with each 
        eligible person independently subject to the credit hours limit 
        in paragraph (g). 
           (e) The adjutant general may, within the limitations of 
        this paragraph paragraphs (b) to (d) 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) (f) 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) up to 100 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) up to 100 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) (d), 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 postsecondary courses at a Minnesota public 
        educational institution. 
           Paragraph (g) Paragraphs (b) to (e) 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) (h) 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) (i) 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.  However, this authority 
        does not apply to a person whose separation from the Minnesota 
        National Guard is due to a medical condition or financial 
        hardship. 
           (j) For purposes of this section, the terms "active 
        service," "state active service," "federally funded state active 
        service," and "federal active service" have the meanings given 
        in section 190.05, subdivisions 5 to 5c, respectively, except 
        that for purposes of paragraph (c), clause (1), these terms 
        exclude service performed exclusively for purposes of: 
           (1) basic combat training, advanced individual training, 
        annual training, and periodic inactive duty training; 
           (2) special training periodically made available to reserve 
        members; 
           (3) service performed in accordance with section 190.08, 
        subdivision 3; and 
           (4) service performed as part of the active guard/reserve 
        program pursuant to United States Code, title 32, section 
        502(f), or other applicable authority. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment and applies to persons who have served 
        in the Minnesota National Guard at anytime since September 11, 
        2001, and if the person has died in the line of service, to the 
        person's surviving spouse and dependents. 
           Sec. 5.  Minnesota Statutes 2004, section 193.29, 
        subdivision 3, is amended to read: 
           Subd. 3.  [JOINT BOARDS.] In all cases in which more than 
        one company or other unit of the military forces shall occupy 
        the same armory, the armory board shall consist of 
        officers military personnel assigned to the units or 
        organizations quartered therein.  The adjutant general shall 
        designate by order from time to time the representatives of each 
        unit quartered therein to comprise the armory board for each 
        armory.  In the discretion of the adjutant general, the 
        membership of the board may be comprised of officers, warrant 
        officers, and enlisted personnel and may be changed from time to 
        time so as to give the several organizations quartered therein 
        proper representation on the board. 
           Sec. 6.  Minnesota Statutes 2004, section 193.30, is 
        amended to read: 
           193.30 [COMMANDING OFFICERS MANAGEMENT OF ARMORY BOARD.] 
           The senior officer member on each armory board shall be the 
        chair, and the junior officer member thereof shall be the 
        recorder.  A record of the proceedings of the board shall be 
        kept, and all motions offered, whether seconded or not, shall be 
        put to a vote and the result recorded.  In the case of a tie 
        vote the adjutant general, upon the request of any member, shall 
        decide.  The governor may make and alter rules for the 
        government of armory boards, officers, and other persons having 
        charge of armories, arsenals, or other military property of the 
        state.  
           Sec. 7.  Minnesota Statutes 2004, section 193.31, is 
        amended to read: 
           193.31 [SENIOR OFFICER TO CONTROL OF DRILL HALL.] 
           The senior officer member of any company or other 
        organization assembling at an armory for drill or instruction 
        shall have control of the drill hall or other portion of the 
        premises used therefor during such occupancy, subject to the 
        rules prescribed for its use and the orders of that officer's 
        member's superior.  Any person who intrudes contrary to orders, 
        or who interrupts, molests, or insults any troops so assembled, 
        or who refuses to leave the premises when properly requested so 
        to do, shall be guilty of a misdemeanor.  Nothing in this 
        section shall prevent reasonable inspection of the premises by 
        the proper municipal officer, or by the lessor thereof in 
        accordance with the terms of the lease. 
           Sec. 8.  Minnesota Statutes 2004, section 197.608, 
        subdivision 5, is amended to read: 
           Subd. 5.  [QUALIFYING USES.] The commissioner shall consult 
        with the Minnesota Association of County Veterans Service 
        Officers in developing a list of qualifying uses for grants 
        awarded under this program.  The commissioner is authorized to 
        use any unexpended funding for this program to provide training 
        and education for county veterans service officers. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 9.  Minnesota Statutes 2004, section 471.975, is 
        amended to read: 
           471.975 [MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.] 
           (a) Except as provided in paragraph (b), a statutory or 
        home rule charter city, county, town, or other political 
        subdivision may pay to each eligible member of the National 
        Guard or other reserve component of the armed forces of the 
        United States an amount equal to the difference between the 
        member's basic active duty military salary and the salary the 
        member would be paid as an active political subdivision 
        employee, including any adjustments the member would have 
        received if not on leave of absence.  This payment may be made 
        only to a person whose basic active duty military salary is less 
        than the salary the person would be paid as an active political 
        subdivision employee.  Back pay authorized by this section may 
        be paid in a lump sum.  Payment under this section must not 
        extend beyond four years from the date the employee reported for 
        active service, plus any additional time the employee may be 
        legally required to serve. 
           (b) Subject to the limits under paragraph (g), each school 
        district shall pay to each eligible member of the National Guard 
        or other reserve component of the armed forces of the United 
        States an amount equal to the difference between the member's 
        basic active duty military salary and the salary the member 
        would be paid as an active school district employee, including 
        any adjustments the member would have received if not on leave 
        of absence.  The pay differential must be based on a comparison 
        between the member's daily rate of active duty pay, calculated 
        by dividing the member's military monthly salary by the number 
        of paid days in the month, and the member's daily rate of pay 
        for the member's school district salary, calculated by dividing 
        the member's total school district salary by the number of 
        contract days.  The member's salary as a school district 
        employee must include the member's basic salary and any 
        additional salary the member earns from the school district for 
        cocurricular activities.  The differential payment under this 
        paragraph must be the difference between the daily rates of 
        military pay times the number of school district contract days 
        the member misses because of military active duty.  This payment 
        may be made only to a person whose basic active duty military 
        salary is less than the salary the person would be paid as an 
        active school district employee.  Payments may be made at the 
        intervals at which the member received pay as a school district 
        employee.  Payment under this section must not extend beyond 
        four years from the date the employee reported for active 
        service, plus any additional time the employee may be legally 
        required to serve. 
           (c) An eligible member of the reserve components of the 
        armed forces of the United States is a reservist or National 
        Guard member who was an employee of a political subdivision at 
        the time the member reported for active service on or after May 
        29, 2003, or who is on active service on May 29, 2003. 
           (d) Notwithstanding other obligations under law and Except 
        as provided in paragraph (e) and elsewhere in Minnesota 
        Statutes, a statutory or home rule charter city, county, town, 
        or other political subdivision has total discretion regarding 
        employee benefit continuation for a member who reports for 
        active service and the terms and conditions of any benefit. 
           (e) A school district must continue the employee's 
        enrollment in health and dental coverage, and the employer 
        contribution toward that coverage, until the employee is covered 
        by health and dental coverage provided by the armed forces.  If 
        the employee had elected dependent coverage for health or dental 
        coverage as of the time that the employee reported for active 
        service, a school district must offer the employee the option to 
        continue the dependent coverage at the employee's own expense.  
        A school district must permit the employee to continue 
        participating in any pretax account in which the employee 
        participated when the employee reported for active service, to 
        the extent of employee pay available for that purpose. 
           (f) For purposes of this section, "active service" has the 
        meaning given in section 190.05, subdivision 5, but excludes 
        service performed exclusively for purposes of: 
           (1) basic combat training, advanced individual training, 
        annual training, and periodic inactive duty training; 
           (2) special training periodically made available to reserve 
        members; and 
           (3) service performed in accordance with section 190.08, 
        subdivision 3. 
           (g) A school district making payments under paragraph (b) 
        shall place a sum equal to any difference between the amount of 
        salary that would have been paid to the employee who is 
        receiving the payments and the amount of salary being paid to 
        substitutes for that employee into a special fund that must be 
        used to pay or partially pay the deployed employee's payments 
        under paragraph (b).  A school district is required to pay only 
        this amount to the deployed school district employee. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment and applies to any public officer or 
        public employee serving in active military service on or after 
        September 11, 2001. 
           Sec. 10.  Laws 2000, chapter 461, article 4, section 4, as 
        amended by Laws 2003, First Special Session chapter 12, article 
        6, section 3, and Laws 2004, chapter 267, article 17, section 7, 
        is amended to read:  
           Sec. 4.  [EFFECTIVE DATE; SUNSET REPEALER.] 
           (a) Sections 1, 2, and 3 are effective on the day following 
        final enactment.  
           (b) Sections 1, 2, and 3, are repealed on May 16, 2006 2007.
           Sec. 11.  [PLAQUE HONORING VETERANS OF THE PERSIAN GULF 
        WAR.] 
           A memorial plaque may be placed in the court of honor on 
        the capitol grounds to recognize the valiant service to our 
        nation by the thousands of brave men and women who served 
        honorably as members of the United States Armed Forces during 
        the Persian Gulf War.  The plaque must be furnished by a person 
        or organization other than the Department of Veterans Affairs 
        and must be approved by the commissioner of veterans affairs and 
        the Capitol Area Architectural and Planning Board. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 12.  [REPEALER.] 
           Minnesota Statutes 2004, sections 43A.11, subdivision 2; 
        and 197.455, subdivision 3, are repealed. 

                                   ARTICLE 5 
                        OFFICE OF ENTERPRISE TECHNOLOGY 
           Section 1.  Minnesota Statutes 2004, section 10A.01, 
        subdivision 35, is amended to read: 
           Subd. 35.  [PUBLIC OFFICIAL.] "Public official" means any: 
           (1) member of the legislature; 
           (2) individual employed by the legislature as secretary of 
        the senate, legislative auditor, chief clerk of the house, 
        revisor of statutes, or researcher, legislative analyst, or 
        attorney in the Office of Senate Counsel and Research or House 
        Research; 
           (3) constitutional officer in the executive branch and the 
        officer's chief administrative deputy; 
           (4) solicitor general or deputy, assistant, or special 
        assistant attorney general; 
           (5) commissioner, deputy commissioner, or assistant 
        commissioner of any state department or agency as listed in 
        section 15.01 or 15.06, or the state chief information officer; 
           (6) member, chief administrative officer, or deputy chief 
        administrative officer of a state board or commission that has 
        either the power to adopt, amend, or repeal rules under chapter 
        14, or the power to adjudicate contested cases or appeals under 
        chapter 14; 
           (7) individual employed in the executive branch who is 
        authorized to adopt, amend, or repeal rules under chapter 14 or 
        adjudicate contested cases under chapter 14; 
           (8) executive director of the State Board of Investment; 
           (9) deputy of any official listed in clauses (7) and (8); 
           (10) judge of the Workers' Compensation Court of Appeals; 
           (11) administrative law judge or compensation judge in the 
        State Office of Administrative Hearings or referee in the 
        Department of Employment and Economic Development; 
           (12) member, regional administrator, division director, 
        general counsel, or operations manager of the metropolitan 
        council; 
           (13) member or chief administrator of a metropolitan 
        agency; 
           (14) director of the Division of Alcohol and Gambling 
        Enforcement in the Department of Public Safety; 
           (15) member or executive director of the Higher Education 
        Facilities Authority; 
           (16) member of the board of directors or president of 
        Minnesota Technology, Inc.; or 
           (17) member of the board of directors or executive director 
        of the Minnesota State High School League. 
           Sec. 2.  Minnesota Statutes 2004, section 15.06, is amended 
        by adding a subdivision to read: 
           Subd. 1a.  [APPLICATION TO OFFICE OF ENTERPRISE 
        TECHNOLOGY.] For the purposes of this section, references to 
        "commissioner" include the chief information officer of the 
        Office of Enterprise Technology. 
           Sec. 3.  Minnesota Statutes 2004, section 16B.04, 
        subdivision 2, is amended to read: 
           Subd. 2.  [POWERS AND DUTIES, GENERAL.] Subject to other 
        provisions of this chapter, the commissioner is authorized to:  
           (1) supervise, control, review, and approve all state 
        contracts and purchasing; 
           (2) provide agencies with supplies and equipment and 
        operate all central store or supply rooms serving more than one 
        agency; 
           (3) approve all computer plans and contracts, and oversee 
        the state's data processing system; 
           (4) investigate and study the management and organization 
        of agencies, and reorganize them when necessary to ensure their 
        effective and efficient operation; 
           (5) (4) manage and control state property, real and 
        personal; 
           (6) (5) maintain and operate all state buildings, as 
        described in section 16B.24, subdivision 1; 
           (7) (6) supervise, control, review, and approve all capital 
        improvements to state buildings and the capitol building and 
        grounds; 
           (8) (7) provide central duplicating, printing, and mail 
        facilities; 
           (9) (8) oversee publication of official documents and 
        provide for their sale; 
           (10) (9) manage and operate parking facilities for state 
        employees and a central motor pool for travel on state business; 
           (11) (10) establish and administer a State Building Code; 
        and 
           (12) (11) provide rental space within the capitol complex 
        for a private day care center for children of state employees.  
        The commissioner shall contract for services as provided in this 
        chapter.  The commissioner shall report back to the legislature 
        by October 1, 1984, with the recommendation to implement the 
        private day care operation.  
           Sec. 4.  Minnesota Statutes 2004, section 16B.48, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REIMBURSEMENTS.] Except as specifically provided 
        otherwise by law, each agency shall reimburse intertechnologies 
        and the general services revolving funds for the cost of all 
        services, supplies, materials, labor, and depreciation of 
        equipment, including reasonable overhead costs, which the 
        commissioner is authorized and directed to furnish an agency.  
        The cost of all publications or other materials produced by the 
        commissioner and financed from the general services revolving 
        fund must include reasonable overhead costs.  The commissioner 
        of administration shall report the rates to be charged for each 
        the general services revolving fund funds no later than July 1 
        each year to the chair of the committee or division in the 
        senate and house of representatives with primary jurisdiction 
        over the budget of the Department of Administration.  The 
        commissioner of finance shall make appropriate transfers to the 
        revolving funds described in this section when requested by the 
        commissioner of administration.  The commissioner of 
        administration may make allotments, encumbrances, and, with the 
        approval of the commissioner of finance, disbursements in 
        anticipation of such transfers.  In addition, the commissioner 
        of administration, with the approval of the commissioner of 
        finance, may require an agency to make advance payments to the 
        revolving funds in this section sufficient to cover the agency's 
        estimated obligation for a period of at least 60 days.  All 
        reimbursements and other money received by the commissioner of 
        administration under this section must be deposited in the 
        appropriate revolving fund.  Any earnings remaining in the fund 
        established to account for the documents service prescribed by 
        section 16B.51 at the end of each fiscal year not otherwise 
        needed for present or future operations, as determined by the 
        commissioners of administration and finance, must be transferred 
        to the general fund.  
           Sec. 5.  Minnesota Statutes 2004, section 16B.48, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LIQUIDATION.] If the intertechnologies or 
        general services revolving fund is funds are abolished or 
        liquidated, the total net profit from the operation of each fund 
        must be distributed to the various funds from which purchases 
        were made.  The amount to be distributed to each fund must bear 
        to the net profit the same ratio as the total purchases from 
        each fund bears to the total purchases from all the funds during 
        the same period of time.  
           Sec. 6.  Minnesota Statutes 2004, section 16E.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PURPOSE CREATION; CHIEF INFORMATION 
        OFFICER.] The Office of Enterprise Technology, referred to in 
        this chapter as the "office," is under the supervision of the 
        commissioner of administration an agency in the executive branch 
        headed by the state chief information officer.  The appointment 
        of the chief information officer is subject to the advice and 
        consent of the senate under section 15.066.  
           Subd. 1a.  [RESPONSIBILITIES.] The office shall 
        provide oversight, leadership, and direction for information and 
        communications telecommunications technology policy and the 
        management, delivery, and security of information and 
        telecommunications technology systems and services in 
        Minnesota.  The office shall coordinate manage strategic 
        investments in information and communications telecommunications 
        technology systems and services to encourage the development of 
        a technically literate society and, to ensure sufficient access 
        to and efficient delivery of government services, and to 
        maximize benefits for the state government as an enterprise.  
           Sec. 7.  Minnesota Statutes 2004, section 16E.01, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DUTIES.] (a) The office shall: 
           (1) coordinate manage the efficient and effective use of 
        available federal, state, local, and private public-private 
        resources to develop statewide information and communications 
        telecommunications technology systems and services and its 
        infrastructure; 
           (2) review approve state agency and intergovernmental 
        information and communications telecommunications technology 
        systems and services development efforts involving state or 
        intergovernmental funding, including federal funding, provide 
        information to the legislature regarding projects reviewed, and 
        recommend projects for inclusion in the governor's budget under 
        section 16A.11; 
           (3) encourage ensure cooperation and collaboration among 
        state and local governments in developing intergovernmental 
        communication and information and telecommunications technology 
        systems and services, and define the structure and 
        responsibilities of the Information Policy Council a 
        representative governance structure; 
           (4) cooperate and collaborate with the legislative and 
        judicial branches in the development of information and 
        communications systems in those branches; 
           (5) continue the development of North Star, the state's 
        official comprehensive on-line service and information 
        initiative; 
           (6) promote and collaborate with the state's agencies in 
        the state's transition to an effectively competitive 
        telecommunications market; 
           (7) collaborate with entities carrying out education and 
        lifelong learning initiatives to assist Minnesotans in 
        developing technical literacy and obtaining access to ongoing 
        learning resources; 
           (8) promote and coordinate public information access and 
        network initiatives, consistent with chapter 13, to connect 
        Minnesota's citizens and communities to each other, to their 
        governments, and to the world; 
           (9) promote and coordinate electronic commerce initiatives 
        to ensure that Minnesota businesses and citizens can 
        successfully compete in the global economy; 
           (10) manage and promote and coordinate the regular and 
        periodic reinvestment in the core information and communications 
        telecommunications technology systems and services 
        infrastructure so that state and local government agencies can 
        effectively and efficiently serve their customers; 
           (11) facilitate the cooperative development of and ensure 
        compliance with standards and policies for information and 
        telecommunications technology systems and services, electronic 
        data practices and privacy, and electronic commerce among 
        international, national, state, and local public and private 
        organizations; and 
           (12) work with others to avoid eliminate unnecessary 
        duplication of existing information and telecommunications 
        technology systems and services provided by other public and 
        private organizations while building on the existing 
        governmental, educational, business, health care, and economic 
        development infrastructures; 
           (13) identify, sponsor, develop, and execute shared 
        information and telecommunications technology projects and 
        ongoing operations; and 
           (14) ensure overall security of the state's information and 
        technology systems and services. 
           (b) The commissioner of administration chief information 
        officer in consultation with the commissioner of finance may 
        must determine that when it is cost-effective for agencies to 
        develop and use shared information and communications 
        telecommunications technology systems and services for the 
        delivery of electronic government services.  This determination 
        may be made if an agency proposes a new system that duplicates 
        an existing system, a system in development, or a system being 
        proposed by another agency.  The commissioner of 
        administration chief information officer may require agencies to 
        use shared information and telecommunications technology systems 
        and services.  The chief information officer shall establish 
        reimbursement rates in cooperation with the commissioner of 
        finance to be billed to agencies and other governmental entities 
        sufficient to cover the actual development, operating, 
        maintenance, and administrative costs of the shared systems.  
        The methodology for billing may include the use of interagency 
        agreements, or other means as allowed by law. 
           Sec. 8.  Minnesota Statutes 2004, section 16E.02, is 
        amended to read: 
           16E.02 [OFFICE OF ENTERPRISE TECHNOLOGY; STRUCTURE AND 
        PERSONNEL.] 
           Subdivision 1.  [OFFICE MANAGEMENT AND STRUCTURE.] (a) The 
        commissioner of administration chief information officer is 
        appointed by the governor.  The chief information officer serves 
        in the unclassified service at the pleasure of the governor.  
        The chief information officer must have experience leading 
        enterprise-level information technology organizations.  The 
        chief information officer is the state's chief information 
        officer and information and telecommunications technology 
        advisor to the governor. 
           (b) The chief information officer may appoint other 
        employees of the office.  The staff of the office must include 
        individuals knowledgeable in information and communications 
        telecommunications technology systems and services and 
        individuals with specialized training in information security.  
           Subd. 1a.  [ACCOUNTABILITY.] The chief information officer 
        reports to the governor.  The chief information officer must 
        consult regularly with the commissioners of administration, 
        finance, human services, revenue, and other commissioners as 
        designated by the governor, on technology projects, standards, 
        and services as well as management of resources and staff 
        utilization. 
           Subd. 2.  [INTERGOVERNMENTAL PARTICIPATION.] The 
        commissioner of administration chief information officer or the 
        commissioner's chief information officer's designee shall serve 
        as a member of the Minnesota Education Telecommunications 
        Council, the Geographic Information Systems Council, and the 
        Library Planning Task Force, or their respective successor 
        organizations, and as a nonvoting member of Minnesota 
        Technology, Inc. and the Minnesota Health Data Institute as a 
        nonvoting member. 
           Subd. 3.  [ADMINISTRATIVE SUPPORT.] The commissioner of 
        administration must provide office space and administrative 
        support services to the office.  The office must reimburse the 
        commissioner for these services. 
           Sec. 9.  Minnesota Statutes 2004, section 16E.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
        16E.03 to 16E.05 chapter 16E, the following terms have the 
        meanings given them. 
           (a) "Information and telecommunications technology systems 
        and services" means all computing and telecommunications 
        hardware and software, the activities undertaken to secure that 
        hardware and software, and the activities undertaken to acquire, 
        transport, process, analyze, store, and disseminate information 
        electronically.  "Information and telecommunications technology 
        systems and services" includes all proposed expenditures for 
        computing and telecommunications hardware and software, security 
        for that hardware and software, and related consulting or other 
        professional services. 
           (a) (b) "Information and communications telecommunications 
        technology project" means the development or acquisition of 
        information and communications technology devices and systems, 
        but does not include the state information infrastructure or its 
        contractors. 
           (b) "Data processing device or system" means equipment or 
        computer programs, including computer hardware, firmware, 
        software, and communication protocols, used in connection with 
        the processing of information through electronic data processing 
        means, and includes data communication devices used in 
        connection with computer facilities for the transmission of data.
        an effort to acquire or produce information and 
        telecommunications technology systems and services. 
           (c) "Telecommunications" means voice, video, and data 
        electronic transmissions transported by wire, wireless, 
        fiber-optic, radio, or other available transport technology. 
           (d) "Cyber security" means the protection of data and 
        systems in networks connected to the Internet. 
           (c) (e) "State agency" means an agency in the executive 
        branch of state government and includes the Minnesota Higher 
        Education Services Office, but does not include the Minnesota 
        State Colleges and Universities unless specifically provided 
        elsewhere in this chapter. 
           Sec. 10.  Minnesota Statutes 2004, section 16E.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COMMISSIONER'S CHIEF INFORMATION OFFICER 
        RESPONSIBILITY.] The commissioner chief information officer 
        shall coordinate the state's information and communications 
        telecommunications technology systems and services to serve the 
        needs of the state government.  The commissioner chief 
        information officer shall:  
           (1) coordinate the design of a master plan for information 
        and communications telecommunications technology systems and 
        services in the state and its political subdivisions and shall 
        report on the plan to the governor and legislature at the 
        beginning of each regular session; 
           (2) coordinate, review, and approve all information and 
        communications telecommunications technology plans and contracts 
        projects and oversee the state's information and communications 
        telecommunications technology systems and services; 
           (3) establish and enforce compliance with standards for 
        information and communications telecommunications technology 
        systems and services that encourage competition are 
        cost-effective and support open systems environments and that 
        are compatible with state, national, and international 
        standards; and 
           (4) maintain a library of systems and programs developed by 
        the state and its political subdivisions for use by agencies of 
        government; 
           (5) direct and manage the shared operations of the state's 
        information and telecommunications technology systems and 
        services; and 
           (6) establish and enforce standards and ensure acquisition 
        of hardware and software necessary to protect data and systems 
        in state agency networks connected to the Internet. 
           Sec. 11.  Minnesota Statutes 2004, section 16E.03, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EVALUATION AND APPROVAL.] A state agency may not 
        undertake an information and communications telecommunications 
        technology project until it has been evaluated according to the 
        procedures developed under subdivision 4.  The governor or 
        governor's designee chief information officer shall give written 
        approval of the proposed project.  If the proposed project is 
        not approved When notified by the chief information officer that 
        a project has not been approved, the commissioner of finance 
        shall cancel the unencumbered balance of any appropriation 
        allotted for the project.  This subdivision does not apply to 
        acquisitions or development of information and communications 
        systems that have anticipated total cost of less than $100,000. 
        The Minnesota State Colleges and Universities shall submit for 
        approval any project related to acquisitions or development of 
        information and communications systems that has a total 
        anticipated cost of more than $250,000. 
           Sec. 12.  Minnesota Statutes 2004, section 16E.03, 
        subdivision 7, is amended to read: 
           Subd. 7.  [DATA CYBER SECURITY SYSTEMS.] In consultation 
        with the attorney general and appropriate agency heads, the 
        commissioner chief information officer shall develop data cyber 
        security policies, guidelines, and standards, and the 
        commissioner of administration shall install and administer 
        state data security systems on the state's centralized computer 
        facility facilities consistent with these policies, guidelines, 
        standards, and state law to ensure the integrity of 
        computer-based and other data and to ensure applicable 
        limitations on access to data, consistent with the public's 
        right to know as defined in chapter 13.  The chief information 
        officer is responsible for overall security of state agency 
        networks connected to the Internet.  Each department or agency 
        head is responsible for the security of the department's or 
        agency's data within the guidelines of established enterprise 
        policy. 
           Sec. 13.  Minnesota Statutes 2004, section 16E.04, is 
        amended to read: 
           16E.04 [INFORMATION AND COMMUNICATIONS TELECOMMUNICATIONS 
        TECHNOLOGY POLICY.] 
           Subdivision 1.  [DEVELOPMENT.] The office shall coordinate 
        with state agencies in developing and establishing develop, 
        establish, and enforce policies and standards for state agencies 
        to follow in developing and purchasing information and 
        communications telecommunications technology systems and 
        services and training appropriate persons in their use.  The 
        office shall develop, promote, and coordinate manage state 
        technology, architecture, standards and guidelines, information 
        needs analysis techniques, contracts for the purchase of 
        equipment and services, and training of state agency personnel 
        on these issues. 
           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 chief information officer, in 
        coordination with the affected agencies, shall promote manage 
        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.  The office shall ensure compliance with the 
        architecture. 
           (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.  The office 
        shall review and approve agency technology plans to ensure 
        consistency with enterprise information and telecommunications 
        technology strategy. 
           (d) The office shall review and approve agency requests for 
        legislative appropriations funding for the development or 
        purchase of information systems equipment or software before the 
        requests may be included in the governor's budget. 
           (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) (3) 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 securely 
        and continually meet the standards and guidelines established by 
        the office.  The standards and guidelines must emphasize 
        uniformity that is cost-effective for the enterprise, that 
        encourages information interchange, open systems environments, 
        and portability of information whenever practicable and 
        consistent with an agency's authority and chapter 13.  
           (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. 
           Subd. 3.  [RISK ASSESSMENT AND MITIGATION.] (a) A risk 
        assessment and risk mitigation plan are required for an all 
        information systems development project estimated to cost more 
        than $1,000,000 that is projects undertaken by a state agency in 
        the executive or judicial branch or by a constitutional officer. 
        The commissioner of administration chief information officer 
        must contract with an entity outside of state government to 
        conduct the initial assessment and prepare the mitigation plan 
        for a project estimated to cost more than $5,000,000.  The 
        outside entity conducting the risk assessment and preparing the 
        mitigation plan must not have any other direct or indirect 
        financial interest in the project.  The risk assessment and risk 
        mitigation plan must provide for periodic monitoring by the 
        commissioner until the project is completed. 
           (b) The risk assessment and risk mitigation plan must be 
        paid for with money appropriated for the information systems 
        development and telecommunications technology project.  The 
        chief information officer must notify the commissioner of 
        finance when work has begun on a project and must identify the 
        proposed budget for the project.  The commissioner of finance 
        shall ensure that no more than ten percent of the amount 
        anticipated to proposed budget be spent on the project, other 
        than the money spent on the risk assessment and risk mitigation 
        plan, may be is spent until the risk assessment and mitigation 
        plan are reported to the commissioner of administration chief 
        information officer and the commissioner chief information 
        officer has approved the risk mitigation plan. 
           Sec. 14.  Minnesota Statutes 2004, section 16E.0465, 
        subdivision 1, is amended to read:  
           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 
        telecommunications 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) (2) for a project that includes both a state agency and 
        units of local government; and 
           (4) (3) to a state agency for grants to be made to other 
        entities. 
           Sec. 15.  Minnesota Statutes 2004, section 16E.0465, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REQUIRED REVIEW AND APPROVAL.] (a) A state 
        agency receiving an appropriation for an information and 
        communications telecommunications 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 Enterprise 
        Technology has reviewed each phase of the project, device, or 
        system, and based on this review, the commissioner of 
        administration chief information officer 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 chief information officer; and 
           (2) the agency is able to accomplish the goals of the phase 
        of the project with the funds appropriated; and 
           (3) the project supports the enterprise information 
        technology strategy. 
           Sec. 16.  Minnesota Statutes 2004, section 16E.055, is 
        amended to read: 
           16E.055 [COMMON WEB FORMAT ELECTRONIC GOVERNMENT SERVICES.] 
           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 the single entry site created by the 
        chief information officer for all agencies to use for electronic 
        government services.  
           Sec. 17.  Minnesota Statutes 2004, section 16E.07, 
        subdivision 8, is amended to read: 
           Subd. 8.  [SECURE TRANSACTION SYSTEM.] The office shall 
        plan and develop a secure transaction system to support delivery 
        of government services electronically.  A state agency that 
        implements electronic government services for fees, licenses, 
        sales, or other purposes must use the secure transaction system 
        developed in accordance with this section. 
           Sec. 18.  [16E.14] [ENTERPRISE TECHNOLOGY REVOLVING FUND.] 
           Subdivision 1.  [CREATION.] The enterprise technology 
        revolving fund is created in the state treasury. 
           Subd. 2.  [APPROPRIATION AND USES OF FUND.] Money in the 
        enterprise technology revolving fund is appropriated annually to 
        the chief information officer to operate information and 
        telecommunications services, including management, consultation, 
        and design services. 
           Subd. 3.  [REIMBURSEMENTS.] Except as specifically provided 
        otherwise by law, each agency shall reimburse the enterprise 
        technology revolving fund for the cost of all services, 
        supplies, materials, labor, and depreciation of equipment, 
        including reasonable overhead costs, which the chief information 
        officer is authorized and directed to furnish an agency.  The 
        chief information officer shall report the rates to be charged 
        for the revolving fund no later than July 1 each year to the 
        chair of the committee or division in the senate and house of 
        representatives with primary jurisdiction over the budget of the 
        Office of Enterprise Technology.  
           Subd. 4.  [CASH FLOW.] The commissioner of finance shall 
        make appropriate transfers to the revolving fund when requested 
        by the chief information officer.  The chief information officer 
        may make allotments and encumbrances in anticipation of such 
        transfers.  In addition, the chief information officer, with the 
        approval of the commissioner of finance, may require an agency 
        to make advance payments to the revolving fund sufficient to 
        cover the office's estimated obligation for a period of at least 
        60 days.  All reimbursements and other money received by the 
        chief information officer under this section must be deposited 
        in the enterprise technology revolving fund.  
           Subd. 5.  [LIQUIDATION.] If the enterprise technology 
        revolving fund is abolished or liquidated, the total net profit 
        from the operation of the fund must be distributed to the 
        various funds from which purchases were made.  The amount to be 
        distributed to each fund must bear to the net profit the same 
        ratio as the total purchases from each fund bears to the total 
        purchases from all the funds during the same period of time. 
           Sec. 19.  Minnesota Statutes 2004, section 299C.65, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP, DUTIES.] (a) The Criminal and 
        Juvenile Justice Information Policy Group consists of the 
        commissioner of corrections, the commissioner of public safety, 
        the commissioner of administration state chief information 
        officer, the commissioner of finance, and four members of the 
        judicial branch appointed by the chief justice of the Supreme 
        Court.  The policy group may appoint additional, nonvoting 
        members as necessary from time to time. 
           (b) The commissioner of public safety is designated as the 
        chair of the policy group.  The commissioner and the policy 
        group have overall responsibility for the successful completion 
        of statewide criminal justice information system integration 
        (CriMNet).  The policy group may hire a program manager to 
        manage the CriMNet projects and to be responsible for the 
        day-to-day operations of CriMNet.  The policy group must ensure 
        that generally accepted project management techniques are 
        utilized for each CriMNet project, including: 
           (1) clear sponsorship; 
           (2) scope management; 
           (3) project planning, control, and execution; 
           (4) continuous risk assessment and mitigation; 
           (5) cost management; 
           (6) quality management reviews; 
           (7) communications management; and 
           (8) proven methodology. 
           (c) Products and services for CriMNet project management, 
        system design, implementation, and application hosting must be 
        acquired using an appropriate procurement process, which 
        includes: 
           (1) a determination of required products and services; 
           (2) a request for proposal development and identification 
        of potential sources; 
           (3) competitive bid solicitation, evaluation, and 
        selection; and 
           (4) contract administration and close-out. 
           (d) The policy group shall study and make recommendations 
        to the governor, the Supreme Court, and the legislature on:  
           (1) a framework for integrated criminal justice information 
        systems, including the development and maintenance of a 
        community data model for state, county, and local criminal 
        justice information; 
           (2) the responsibilities of each entity within the criminal 
        and juvenile justice systems concerning the collection, 
        maintenance, dissemination, and sharing of criminal justice 
        information with one another; 
           (3) actions necessary to ensure that information maintained 
        in the criminal justice information systems is accurate and 
        up-to-date; 
           (4) the development of an information system containing 
        criminal justice information on gross misdemeanor-level and 
        felony-level juvenile offenders that is part of the integrated 
        criminal justice information system framework; 
           (5) the development of an information system containing 
        criminal justice information on misdemeanor arrests, 
        prosecutions, and convictions that is part of the integrated 
        criminal justice information system framework; 
           (6) comprehensive training programs and requirements for 
        all individuals in criminal justice agencies to ensure the 
        quality and accuracy of information in those systems; 
           (7) continuing education requirements for individuals in 
        criminal justice agencies who are responsible for the 
        collection, maintenance, dissemination, and sharing of criminal 
        justice data; 
           (8) a periodic audit process to ensure the quality and 
        accuracy of information contained in the criminal justice 
        information systems; 
           (9) the equipment, training, and funding needs of the state 
        and local agencies that participate in the criminal justice 
        information systems; 
           (10) the impact of integrated criminal justice information 
        systems on individual privacy rights; 
           (11) the impact of proposed legislation on the criminal 
        justice system, including any fiscal impact, need for training, 
        changes in information systems, and changes in processes; 
           (12) the collection of data on race and ethnicity in 
        criminal justice information systems; 
           (13) the development of a tracking system for domestic 
        abuse orders for protection; 
           (14) processes for expungement, correction of inaccurate 
        records, destruction of records, and other matters relating to 
        the privacy interests of individuals; and 
           (15) the development of a database for extended 
        jurisdiction juvenile records and whether the records should be 
        public or private and how long they should be retained.  
           Sec. 20.  Minnesota Statutes 2004, section 299C.65, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REPORT, TASK FORCE.] (a) The policy group shall 
        file an annual report with the governor, Supreme Court, and 
        chairs and ranking minority members of the senate and house 
        committees and divisions with jurisdiction over criminal justice 
        funding and policy by December 1 of each year.  
           (b) The report must make recommendations concerning any 
        legislative changes or appropriations that are needed to ensure 
        that the criminal justice information systems operate accurately 
        and efficiently.  To assist them in developing their 
        recommendations, the policy group shall appoint a task force 
        consisting of its members or their designees and the following 
        additional members:  
           (1) the director of the Office of Strategic and Long-Range 
        Planning; 
           (2) two sheriffs recommended by the Minnesota Sheriffs 
        Association; 
           (3) two police chiefs recommended by the Minnesota Chiefs 
        of Police Association; 
           (4) two county attorneys recommended by the Minnesota 
        County Attorneys Association; 
           (5) two city attorneys recommended by the Minnesota League 
        of Cities; 
           (6) two public defenders appointed by the Board of Public 
        Defense; 
           (7) two district judges appointed by the Conference of 
        Chief Judges, one of whom is currently assigned to the juvenile 
        court; 
           (8) two community corrections administrators recommended by 
        the Minnesota Association of Counties, one of whom represents a 
        community corrections act county; 
           (9) two probation officers; 
           (10) four public members, one of whom has been a victim of 
        crime, and two who are representatives of the private business 
        community who have expertise in integrated information systems; 
           (11) two court administrators; 
           (12) one member of the house of representatives appointed 
        by the speaker of the house; 
           (13) one member of the senate appointed by the majority 
        leader; 
           (14) the attorney general or a designee; 
           (15) the commissioner of administration state chief 
        information officer or a designee; 
           (16) an individual recommended by the Minnesota League of 
        Cities; and 
           (17) an individual recommended by the Minnesota Association 
        of Counties. 
        In making these appointments, the appointing authority shall 
        select members with expertise in integrated data systems or best 
        practices.  
           (c) The commissioner of public safety may appoint 
        additional, nonvoting members to the task force as necessary 
        from time to time. 
           Sec. 21.  Minnesota Statutes 2004, section 403.36, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP.] (a) The commissioner of 
        public safety shall convene and chair the Statewide Radio Board 
        to develop a project plan for a statewide, shared, trunked 
        public safety radio communication system.  The system may be 
        referred to as "Allied Radio Matrix for Emergency Response," or 
        "ARMER." 
           (b) The board consists of the following members or their 
        designees: 
           (1) the commissioner of public safety; 
           (2) the commissioner of transportation; 
           (3) the commissioner of administration state chief 
        information officer; 
           (4) the commissioner of natural resources; 
           (5) the chief of the Minnesota State Patrol; 
           (6) the commissioner of health; 
           (7) the commissioner of finance; 
           (8) two elected city officials, one from the nine-county 
        metropolitan area and one from Greater Minnesota, appointed by 
        the governing body of the League of Minnesota Cities; 
           (9) two elected county officials, one from the nine-county 
        metropolitan area and one from Greater Minnesota, appointed by 
        the governing body of the Association of Minnesota Counties; 
           (10) two sheriffs, one from the nine-county metropolitan 
        area and one from Greater Minnesota, appointed by the governing 
        body of the Minnesota Sheriffs' Association; 
           (11) two chiefs of police, one from the nine-county 
        metropolitan area and one from Greater Minnesota, appointed by 
        the governor after considering recommendations made by the 
        Minnesota Chiefs' of Police Association; 
           (12) two fire chiefs, one from the nine-county metropolitan 
        area and one from Greater Minnesota, appointed by the governor 
        after considering recommendations made by the Minnesota Fire 
        Chiefs' Association; 
           (13) two representatives of emergency medical service 
        providers, one from the nine-county metropolitan area and one 
        from Greater Minnesota, appointed by the governor after 
        considering recommendations made by the Minnesota Ambulance 
        Association; 
           (14) the chair of the Metropolitan Radio Board; and 
           (15) a representative of Greater Minnesota elected by those 
        units of government in phase three and any subsequent phase of 
        development as defined in the statewide, shared radio and 
        communication plan, who have submitted a plan to the Statewide 
        Radio Board and where development has been initiated. 
           (c) The Statewide Radio Board shall coordinate the 
        appointment of board members representing Greater Minnesota with 
        the appointing authorities and may designate the geographic 
        region or regions from which an appointed board member is 
        selected where necessary to provide representation from 
        throughout the state.  
           Sec. 22.  [TRANSFER OF DUTIES.] 
           Responsibilities of the commissioner of administration for 
        state telecommunications systems, state information 
        infrastructure, and electronic conduct of state business under 
        Minnesota Statutes, sections 16B.405; 16B.44; 16B.46; 16B.465; 
        16B.466; and 16B.467, are transferred to the Office of 
        Enterprise Technology.  All positions in the Office of 
        Technology and the Intertechnologies Group are transferred to 
        the Office of Enterprise Technology.  Minnesota Statutes, 
        section 15.039, applies to the transfer of responsibilities in 
        this section. 
           Sec. 23.  [REVISOR INSTRUCTION.] 
           In the next and subsequent editions of Minnesota Statutes, 
        the revisor of statutes shall: 
           (1) substitute the term "chief information officer" for 
        "commissioner" and "commissioner of administration" in the 
        following sections:  16B.405; 16B.44; 16B.46; 16B.465; 16B.466; 
        16B.467; 16E.03, subdivisions 4, 5, 6, and 8; 16E.035; and 
        16E.07, subdivision 4; 
           (2) substitute the term "Office of Enterprise Technology" 
        for the term "Office of Technology"; and 
           (3) recodify the following sections into chapter 16E:  
        16B.405; 16B.44; 16B.46; 16B.465; 16B.466; and 16B.467. 
           Sec. 24.  [REPEALER.] 
           Minnesota Statutes 2004, sections 16B.48, subdivision 3; 
        and 16E.0465, subdivision 3, are repealed. 

                                   ARTICLE 6 
                         ELECTIONS AND CAMPAIGN FINANCE 
           Section 1.  Minnesota Statutes 2004, section 10A.01, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ASSOCIATED BUSINESS.] "Associated business" 
        means an association, corporation, partnership, limited 
        liability company, limited liability partnership, or other 
        organized legal entity from which the individual receives 
        compensation in excess of $50, except for actual and reasonable 
        expenses, in any month as a director, officer, owner, member, 
        partner, employer or employee, or whose securities the 
        individual holds worth $2,500 or more at fair market value. 
           Sec. 2.  Minnesota Statutes 2004, section 10A.01, 
        subdivision 26, is amended to read: 
           Subd. 26.  [NONCAMPAIGN DISBURSEMENT.] "Noncampaign 
        disbursement" means a purchase or payment of money or anything 
        of value made, or an advance of credit incurred, or a donation 
        in kind received, by a principal campaign committee for any of 
        the following purposes: 
           (1) payment for accounting and legal services; 
           (2) return of a contribution to the source; 
           (3) repayment of a loan made to the principal campaign 
        committee by that committee; 
           (4) return of a public subsidy; 
           (5) payment for food, beverages, entertainment, and 
        facility rental for a fund-raising event; 
           (6) services for a constituent by a member of the 
        legislature or a constitutional officer in the executive branch, 
        including the costs of preparing and distributing a suggestion 
        or idea solicitation to constituents, performed from the 
        beginning of the term of office to adjournment sine die of the 
        legislature in the election year for the office held, and half 
        the cost of services for a constituent by a member of the 
        legislature or a constitutional officer in the executive branch 
        performed from adjournment sine die to 60 days after adjournment 
        sine die; 
           (7) payment for food and beverages provided to campaign 
        consumed by a candidate or volunteers while they are engaged in 
        campaign activities; 
           (8) payment for food or a beverage consumed while attending 
        a reception or meeting directly related to legislative duties; 
           (9) payment of expenses incurred by elected or appointed 
        leaders of a legislative caucus in carrying out their leadership 
        responsibilities; 
           (9) (10) payment by a principal campaign committee of the 
        candidate's expenses for serving in public office, other than 
        for personal uses; 
           (10) (11) costs of child care for the candidate's children 
        when campaigning; 
           (11) (12) fees paid to attend a campaign school; 
           (12) (13) costs of a postelection party during the election 
        year when a candidate's name will no longer appear on a ballot 
        or the general election is concluded, whichever occurs first; 
           (13) (14) interest on loans paid by a principal campaign 
        committee on outstanding loans; 
           (14) (15) filing fees; 
           (15) (16) post-general election thank-you notes or 
        advertisements in the news media; 
           (16) (17) the cost of campaign material purchased to 
        replace defective campaign material, if the defective material 
        is destroyed without being used; 
           (17) (18) contributions to a party unit; and 
           (18) (19) payments for funeral gifts or memorials; and 
           (20) other purchases or payments specified in board rules 
        or advisory opinions as being for any purpose other than to 
        influence the nomination or election of a candidate or to 
        promote or defeat a ballot question. 
           The board must determine whether an activity involves a 
        noncampaign disbursement within the meaning of this subdivision. 
           A noncampaign disbursement is considered to be made in the 
        year in which the candidate made the purchase of goods or 
        services or incurred an obligation to pay for goods or services. 
           Sec. 3.  Minnesota Statutes 2004, section 10A.025, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [ELECTRONIC FILING.] A report or statement 
        required to be filed under this chapter may be filed 
        electronically.  The board shall adopt rules to regulate 
        electronic filing and to ensure that the electronic filing 
        process is secure. 
           Sec. 4.  Minnesota Statutes 2004, section 10A.071, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXCEPTIONS.] (a) The prohibitions in this 
        section do not apply if the gift is: 
           (1) a contribution as defined in section 10A.01, 
        subdivision 11; 
           (2) services to assist an official in the performance of 
        official duties, including but not limited to providing advice, 
        consultation, information, and communication in connection with 
        legislation, and services to constituents; 
           (3) services of insignificant monetary value; 
           (4) a plaque or similar memento recognizing individual 
        services in a field of specialty or to a charitable cause; 
           (5) a trinket or memento of insignificant value costing $5 
        or less; 
           (6) informational material of unexceptional value; or 
           (7) food or a beverage given at a reception, meal, or 
        meeting away from the recipient's place of work by an 
        organization before whom the recipient appears to make a speech 
        or answer questions as part of a program. 
           (b) The prohibitions in this section do not apply if the 
        gift is given: 
           (1) because of the recipient's membership in a group, a 
        majority of whose members are not officials, and an equivalent 
        gift is given to the other members of the group; or 
           (2) by a lobbyist or principal who is a member of the 
        family of the recipient, unless the gift is given on behalf of 
        someone who is not a member of that family. 
           Sec. 5.  Minnesota Statutes 2004, section 10A.08, is 
        amended to read: 
           10A.08 [REPRESENTATION DISCLOSURE.] 
           A public official who represents a client for a fee before 
        an individual, board, commission, or agency that has rulemaking 
        authority in a hearing conducted under chapter 14, must disclose 
        the official's participation in the action to the board within 
        14 days after the appearance.  The board must send a notice by 
        certified mail to any public official who fails to disclose the 
        participation within 14 days after the appearance.  If the 
        public official fails to disclose the participation within ten 
        business days after the notice was sent, the board may impose a 
        late filing fee of $5 per day, not to exceed $100, starting on 
        the 11th day after the notice was sent.  The board must send an 
        additional notice by certified mail to a public official who 
        fails to disclose the participation within 14 days after the 
        first notice was sent by the board that the public official may 
        be subject to a civil penalty for failure to disclose the 
        participation.  A public official who fails to disclose the 
        participation within seven days after the second notice was sent 
        by the board is subject to a civil penalty imposed by the board 
        of up to $1,000. 
           Sec. 6.  Minnesota Statutes 2004, section 10A.20, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PREELECTION REPORTS.] In a statewide election 
        any loan, contribution, or contributions from any one source 
        totaling $2,000 or more, or in any judicial district or 
        legislative election totaling more than $400, received between 
        the last day covered in the last report before an election and 
        the election must be reported to the board in one of the 
        following ways: 
           (1) in person within 48 hours after its receipt; 
           (2) by telegram or mailgram within 48 hours after its 
        receipt; or 
           (3) by certified mail sent within 48 hours after its 
        receipt; or 
           (4) by electronic means sent within 48 hours after its 
        receipt. 
           These loans and contributions must also be reported in the 
        next required report. 
           The 48-hour notice requirement does not apply with respect 
        to a primary in which the statewide or legislative candidate is 
        unopposed. 
           Sec. 7.  Minnesota Statutes 2004, section 10A.27, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONTRIBUTION LIMITS.] (a) Except as 
        provided in subdivision 2, a candidate must not permit the 
        candidate's principal campaign committee to accept aggregate 
        contributions made or delivered by any individual, political 
        committee, or political fund in excess of the following: 
           (1) to candidates for governor and lieutenant governor 
        running together, $2,000 in an election year for the office 
        sought and $500 in other years; 
           (2) to a candidate for attorney general, $1,000 in an 
        election year for the office sought and $200 in other years; 
           (3) to a candidate for the office of secretary of state or 
        state auditor, $500 in an election year for the office sought 
        and $100 in other years; 
           (4) to a candidate for state senator, $500 in an election 
        year for the office sought and $100 in other years; and 
           (5) to a candidate for state representative, $500 in an 
        election year for the office sought and $100 in the other year. 
           (b) The following deliveries are not subject to the 
        bundling limitation in this subdivision: 
           (1) delivery of contributions collected by a member of the 
        candidate's principal campaign committee, such as a block worker 
        or a volunteer who hosts a fund-raising event, to the 
        committee's treasurer; and 
           (2) a delivery made by an individual on behalf of the 
        individual's spouse.  
           (c) A lobbyist, political committee, political party unit, 
        or political fund must not make a contribution a candidate is 
        prohibited from accepting. 
           Sec. 8.  Minnesota Statutes 2004, section 10A.28, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXCEEDING CONTRIBUTION LIMITS.] A political 
        committee, political fund, or principal campaign committee that 
        makes a contribution, or a candidate who permits the candidate's 
        principal campaign committee to accept contributions, in excess 
        of the limits imposed by section 10A.27 is subject to a civil 
        penalty of up to four times the amount by which the contribution 
        exceeded the limits. The following are subject to a civil 
        penalty of up to four times the amount by which a contribution 
        exceeds the applicable limits: 
           (1) a lobbyist, political committee, or political fund that 
        makes a contribution in excess of the limits imposed by section 
        10A.27, subdivisions 1 and 8; 
           (2) a principal campaign committee that makes a 
        contribution in excess of the limits imposed by section 10A.27, 
        subdivision 2; 
           (3) a political party unit that makes a contribution in 
        excess of the limits imposed by section 10A.27, subdivisions 2 
        and 8; or 
           (4) a candidate who permits the candidate's principal 
        campaign committee to accept contributions in excess of the 
        limits imposed by section 10A.27. 
           Sec. 9.  Minnesota Statutes 2004, section 10A.31, 
        subdivision 4, is amended to read: 
           Subd. 4.  [APPROPRIATION.] (a) The amounts designated by 
        individuals for the state elections campaign fund, less three 
        percent, are appropriated from the general fund, must be 
        transferred and credited to the appropriate account in the state 
        elections campaign fund, and are annually appropriated for 
        distribution as set forth in subdivisions 5, 5a, 6, and 7.  The 
        remaining three percent must be kept in the general fund for 
        administrative costs.  
           (b) In addition to the amounts in paragraph 
        (a), $1,500,000 $1,250,000 for each general election is 
        appropriated from the general fund for transfer to the general 
        account of the state elections campaign fund. 
           Of this appropriation, $65,000 each fiscal year must be set 
        aside to pay assessments made by the Office of Administrative 
        Hearings under section 211B.37.  Amounts remaining after all 
        assessments have been paid must be canceled to the general 
        account. 
           Sec. 10.  Minnesota Statutes 2004, section 10A.31, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ALLOCATION.] (a)  [GENERAL ACCOUNT.] In each 
        calendar year the money in the general account must be allocated 
        to candidates as follows: 
           (1) 21 percent for the offices of governor and lieutenant 
        governor together; 
           (2) 4.2 percent for the office of attorney general; 
           (3) 2.4 percent each for the offices of secretary of state 
        and state auditor; 
           (4) in each calendar year during the period in which state 
        senators serve a four-year term, 23-1/3 percent for the office 
        of state senator, and 46-2/3 percent for the office of state 
        representative; and 
           (5) in each calendar year during the period in which state 
        senators serve a two-year term, 35 percent each for the offices 
        of state senator and state representative. 
           (b)  [PARTY ACCOUNT.] In each calendar year the money in 
        each party account must be allocated as follows: 
           (1) 14 percent for the offices of governor and lieutenant 
        governor together; 
           (2) 2.8 percent for the office of attorney general; 
           (3) 1.6 percent each for the offices of secretary of state 
        and state auditor; 
           (4) in each calendar year during the period in which state 
        senators serve a four-year term, 23-1/3 percent for the office 
        of state senator, and 46-2/3 percent for the office of state 
        representative; 
           (5) in each calendar year during the period in which state 
        senators serve a two-year term, 35 percent each for the offices 
        of state senator and state representative; and 
           (6) ten percent or $50,000, whichever is less, for the 
        state committee of a political party; one-third of any amount in 
        excess of that allocated to the state committee of a political 
        party under this clause must be allocated to the office of state 
        senator and two-thirds must be allocated to the office of state 
        representative under clause (4). 
           Money allocated to each state committee under clause (6) 
        must be deposited in a separate account and must be spent for 
        only those items enumerated in section 10A.275.  Money allocated 
        to a state committee under clause (6) must be paid to the 
        committee by the board as it is received in the account on a 
        monthly basis, with payment on the 15th day of the calendar 
        month following the month in which the returns were processed by 
        the Department of Revenue, provided that these distributions 
        would be equal to 90 percent of the amount of money indicated in 
        the Department of Revenue's weekly unedited reports of income 
        tax returns and property tax refund returns processed in the 
        month, as notified by the Department of Revenue to the board.  
        The amounts paid to each state committee are subject to biennial 
        adjustment and settlement at the time of each certification 
        required of the commissioner of revenue under subdivisions 7 and 
        10.  If the total amount of payments received by a state 
        committee for the period reflected on a certification by the 
        Department of Revenue is different from the amount that should 
        have been received during the period according to the 
        certification, each subsequent monthly payment must be increased 
        or decreased to the fullest extent possible until the amount of 
        the overpayment is recovered or the underpayment is distributed. 
           Sec. 11.  Minnesota Statutes 2004, 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 that has presented at least one candidate for 
        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 last 
        preceding state general election 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. 
           (b) "Major political party" also means a political party 
        that maintains a party organization in the state, political 
        subdivision, or precinct in question and that has presented at 
        least 45 candidates for election to the office of state 
        representative, 23 candidates for election to the office of 
        state senator, four candidates for election to the office of 
        representative in Congress, and one candidate for election to 
        each of the following offices: governor and lieutenant governor, 
        attorney general, secretary of state, and state auditor, at the 
        last preceding state general election for those offices. 
           (c) "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 at any time before the close of filing 
        for the state partisan primary ballot 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) (d) A political party whose candidate receives a 
        sufficient number of votes at a state general election described 
        in paragraph (a) or a political party that presents candidates 
        at an election as required by paragraph (b) becomes a major 
        political party as of January 1 following that election and 
        retains its major party status notwithstanding that for at least 
        two state general elections even if the party fails to present a 
        candidate who receives the number and percentage of votes 
        required under paragraph (a) or fails to present candidates as 
        required by paragraph (b) at the following subsequent state 
        general election elections. 
           (d) (e) A major political party whose candidates fail to 
        receive the number and percentage of votes required under 
        paragraph (a) and that fails to present candidates as required 
        by paragraph (b) at either each of two consecutive state general 
        election elections described by paragraph (a) or (b), 
        respectively, loses major party status as of December 31 
        following the most recent later of the two consecutive state 
        general election elections. 
           Sec. 12.  Minnesota Statutes 2004, 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 (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 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 at any time before the close of filing 
        for the state partisan primary ballot 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 for at least two state general elections 
        even if the party fails to present a candidate who receives the 
        number and percentage of votes required under paragraph (b) 
        at the following subsequent state general election elections. 
           (d) A minor political party whose candidates fail to 
        receive the number and percentage of votes required under 
        paragraph (b) at either each of two consecutive state general 
        election elections described by paragraph (b) loses minor party 
        status as of December 31 following the most recent later of the 
        two consecutive state general election elections. 
           (e) A minor party that qualifies to be a major party loses 
        its status as a minor party at the time it becomes a major 
        party.  Votes received by the candidates of a major party must 
        be counted in determining whether the party received sufficient 
        votes to qualify as a minor party, notwithstanding that the 
        party does not receive sufficient votes to retain its major 
        party status.  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. 13.  Minnesota Statutes 2004, section 200.02, is 
        amended by adding a subdivision to read: 
           Subd. 24.  [METROPOLITAN AREA.] "Metropolitan area" means 
        the counties of Anoka, Carver, Chisago, Dakota, Hennepin, 
        Isanti, Ramsey, Scott, Sherburne, Washington, and Wright. 
           Sec. 14.  Minnesota Statutes 2004, section 201.014, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NOT ELIGIBLE.] The following individuals are not 
        eligible to vote.  Any individual:  
           (a) Convicted of treason or any felony whose civil rights 
        have not been restored; 
           (b) Under a guardianship of the person in which the court 
        order provides that the ward does not retain revokes the ward's 
        right to vote; or 
           (c) Found by a court of law to be legally incompetent. 
           Sec. 15.  Minnesota Statutes 2004, section 201.061, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELECTION DAY REGISTRATION.] (a) An individual 
        who is eligible to vote may register on election day by 
        appearing in person at the polling place for the precinct in 
        which the individual maintains residence, by completing a 
        registration application, making an oath in the form prescribed 
        by the secretary of state and providing proof of residence.  An 
        individual may prove residence for purposes of registering by: 
           (1) presenting a driver's license or Minnesota 
        identification card issued pursuant to section 171.07; 
           (2) presenting any document approved by the secretary of 
        state as proper identification; 
           (3) presenting one of the following: 
           (i) a current valid student identification card from a 
        postsecondary educational institution in Minnesota, if a list of 
        students from that institution has been prepared under section 
        135A.17 and certified to the county auditor in the manner 
        provided in rules of the secretary of state; or 
           (ii) a current student fee statement that contains the 
        student's valid address in the precinct together with a picture 
        identification card; or 
           (4) having a voter who is registered to vote in the 
        precinct, or who is an employee employed by and working in a 
        residential facility in the precinct and vouching for a resident 
        in the facility, sign an oath in the presence of the election 
        judge vouching that the voter or employee personally knows that 
        the individual is a resident of the precinct.  A voter who has 
        been vouched for on election day may not sign a proof of 
        residence oath vouching for any other individual on that 
        election day.  A voter who is registered to vote in the precinct 
        may sign up to 15 proof-of-residence oaths on any election day.  
        This limitation does not apply to an employee of a residential 
        facility described in this clause.  The secretary of state shall 
        provide a form for election judges to use in recording the 
        number of individuals for whom a voter signs proof-of-residence 
        oaths on election day.  The form must include space for the 
        maximum number of individuals for whom a voter may sign 
        proof-of-residence oaths.  For each proof-of-residence oath, the 
        form must include a statement that the voter is registered to 
        vote in the precinct, personally knows that the individual is a 
        resident of the precinct, and is making the statement on oath.  
        The form must include a space for the voter's printed name, 
        signature, telephone number, and address. 
           The oath required by this subdivision and Minnesota Rules, 
        part 8200.9939, must be attached to the voter registration 
        application and the information on the oath must be recorded on 
        the records of both the voter registering on election day and 
        the voter who is vouching for the person's residence, and 
        entered into the statewide voter registration system by the 
        county auditor when the voter registration application is 
        entered into that system. 
           (b) The operator of a residential facility shall prepare a 
        list of the names of its employees currently working in the 
        residential facility and the address of the residential 
        facility.  The operator shall certify the list and provide it to 
        the appropriate county auditor no less than 20 days before each 
        election for use in election day registration.  
           (c) "Residential facility" means transitional housing as 
        defined in section 119A.43, subdivision 1; a supervised living 
        facility licensed by the commissioner of health under section 
        144.50, subdivision 6; a nursing home as defined in section 
        144A.01, subdivision 5; a residence registered with the 
        commissioner of health as a housing with services establishment 
        as defined in section 144D.01, subdivision 4; a veterans home 
        operated by the board of directors of the Minnesota Veterans 
        Homes under chapter 198; a residence licensed by the 
        commissioner of human services to provide a residential program 
        as defined in section 245A.02, subdivision 14; a residential 
        facility for persons with a developmental disability licensed by 
        the commissioner of human services under section 252.28; group 
        residential housing as defined in section 256I.03, subdivision 
        3; a shelter for battered women as defined in section 611A.37, 
        subdivision 4; or a supervised publicly or privately operated 
        shelter or dwelling designed to provide temporary living 
        accommodations for the homeless. 
           (d) For tribal band members living on an Indian 
        reservation, an individual may prove residence for purposes of 
        registering by presenting an identification card issued by the 
        tribal government of a tribe recognized by the Bureau of Indian 
        Affairs, United States Department of the Interior, that contains 
        the name, street address, signature, and picture of the 
        individual.  The county auditor of each county having territory 
        within the reservation shall maintain a record of the number of 
        election day registrations accepted under this section. 
           (e) A county, school district, or municipality may require 
        that an election judge responsible for election day registration 
        initial each completed registration application. 
           Sec. 16.  Minnesota Statutes 2004, section 201.071, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORM.] A voter registration application 
        must be of suitable size and weight for mailing and contain 
        spaces for the following required information:  voter's first 
        name, middle name, and last name; voter's previous name, if any; 
        voter's current address; voter's previous address, if any; 
        voter's date of birth; voter's municipality and county of 
        residence; voter's telephone number, if provided by the voter; 
        date of registration; current and valid Minnesota driver's 
        license number or Minnesota state identification number, or if 
        the voter has no current and valid Minnesota driver's license or 
        Minnesota state identification, the last four digits of the 
        voter's Social Security number; and voter's signature.  The 
        registration application may include the voter's e-mail address, 
        if provided by the voter, and the voter's interest in serving as 
        an election judge, if indicated by the voter.  The application 
        must also contain the following certification of voter 
        eligibility: 
           "I certify that I: 
           (1) will be at least 18 years old on election day; 
           (2) am a citizen of the United States; 
           (3) will have resided in Minnesota for 20 days immediately 
        preceding election day; 
           (4) maintain residence at the address given on the 
        registration form; 
           (5) am not under court-ordered guardianship of the person 
        where I have not retained the in which the court order revokes 
        my right to vote; 
           (6) have not been found by a court to be legally 
        incompetent to vote; 
           (7) have not the right to vote because, if I have been 
        convicted of a felony without having my civil rights restored, 
        my felony sentence has expired (been completed) or I have been 
        discharged from my sentence; and 
           (8) have read and understand the following statement:  that 
        giving false information is a felony punishable by not more than 
        five years imprisonment or a fine of not more than $10,000, or 
        both." 
           The certification must include boxes for the voter to 
        respond to the following questions:  
           "(1) Are you a citizen of the United States?" and 
           "(2) Will you be 18 years old on or before election day?" 
           And the instruction: 
           "If you checked 'no' to either of these questions, do not 
        complete this form." 
           The form of the voter registration application and the 
        certification of voter eligibility must be as provided in this 
        subdivision and approved by the secretary of state.  Voter 
        registration forms authorized by the National Voter Registration 
        Act may must also be accepted as valid.  The federal postcard 
        application form must also be accepted as valid if it is not 
        deficient and the voter is eligible to register in Minnesota.  
           An individual may use a voter registration application to 
        apply to register to vote in Minnesota or to change information 
        on an existing registration. 
           Sec. 17.  Minnesota Statutes 2004, section 201.091, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PUBLIC INFORMATION LISTS.] The county auditor 
        shall make available for inspection a public information list 
        which must contain the name, address, year of birth, and voting 
        history of each registered voter in the county.  The telephone 
        number must be included on the list if provided by the voter.  
        The public information list may also include information on 
        voting districts.  The county auditor may adopt reasonable rules 
        governing access to the list.  No individual inspecting the 
        public information list shall tamper with or alter it in any 
        manner.  No individual who inspects the public information list 
        or who acquires a list of registered voters prepared from the 
        public information list may use any information contained in the 
        list for purposes unrelated to elections, political activities, 
        or law enforcement.  The secretary of state may provide copies 
        of the public information lists and other information from the 
        statewide registration system for uses related to elections, 
        political activities, or in response to a law enforcement 
        inquiry from a public official concerning a failure to comply 
        with any criminal statute or any state or local tax statute. 
           Before inspecting the public information list or obtaining 
        a list of voters or other information from the list, the 
        individual shall provide identification to the public official 
        having custody of the public information list and shall state in 
        writing that any information obtained from the list will not be 
        used for purposes unrelated to elections, political activities, 
        or law enforcement.  Requests to examine or obtain information 
        from the public information lists or the statewide registration 
        system must be made and processed in the manner provided in the 
        rules of the secretary of state. 
           Upon receipt of a written request and a copy of the court 
        order statement signed by the voter that withholding the voter's 
        name from the public information list is required for the safety 
        of the voter or the voter's family, the secretary of state and 
        county auditor must withhold from the public information list 
        the name of any a registered voter placed under court-ordered 
        protection.  
           Sec. 18.  Minnesota Statutes 2004, section 201.091, 
        subdivision 5, is amended to read: 
           Subd. 5.  [COPY OF LIST TO REGISTERED VOTER.] The county 
        auditors and the secretary of state shall provide copies of the 
        public information lists in electronic or other media to any 
        voter registered in Minnesota within ten days of receiving a 
        written or electronic request accompanied by payment of the cost 
        of reproduction.  The county auditors and the secretary of state 
        shall make a copy of the list available for public inspection 
        without cost.  An individual who inspects or acquires a copy of 
        a public information list may not use any information contained 
        in it for purposes unrelated to elections, political activities, 
        or law enforcement.  
           Sec. 19.  Minnesota Statutes 2004, section 201.15, is 
        amended to read: 
           201.15 [DISTRICT JUDGE, REPORT GUARDIANSHIPS AND 
        COMMITMENTS.] 
           Subdivision 1.  [GUARDIANSHIPS AND INCOMPETENTS.] Pursuant 
        to the Help America Vote Act of 2002, Public Law 107-252, the 
        state court administrator shall report monthly by electronic 
        means to the secretary of state the name, address, and date of 
        birth of each individual 18 years of age or over, who during the 
        month preceding the date of the report:  
           (a) was placed under a guardianship of the person in which 
        the court order provides that the ward does not retain revokes 
        the ward's right to vote; or 
           (b) was adjudged legally incompetent. 
           The court administrator shall also report the same 
        information for each individual transferred to the jurisdiction 
        of the court who meets a condition specified in clause (a) or 
        (b).  The secretary of state shall determine if any of the 
        persons in the report is registered to vote and shall prepare a 
        list of those registrants for the county auditor.  The county 
        auditor shall change the status on the record in the statewide 
        registration system of any individual named in the report to 
        indicate that the individual is not eligible to reregister or 
        vote. 
           Subd. 2.  [RESTORATION TO CAPACITY GUARDIANSHIP TERMINATION 
        OR MODIFICATION.] Pursuant to the Help America Vote Act of 2002, 
        Public Law 107-252, the state court administrator shall report 
        monthly by electronic means to the secretary of state the name, 
        address, and date of birth of each individual transferred from 
        whose guardianship to conservatorship or who is restored to 
        capacity by the court was modified to restore the ward's right 
        to vote or whose guardianship was terminated by order of the 
        court under section 524.5-317 after being ineligible to vote for 
        any of the reasons specified in subdivision 1.  The secretary of 
        state shall determine if any of the persons in the report is 
        registered to vote and shall prepare a list of those registrants 
        for the county auditor.  The county auditor shall change the 
        status on the voter's record in the statewide registration 
        system to "active." 
           Sec. 20.  Minnesota Statutes 2004, section 203B.01, 
        subdivision 3, is amended to read: 
           Subd. 3.  [MILITARY.] "Military" means the Army, Navy, Air 
        Force, Marine Corps, Coast Guard or Merchant Marine of the 
        United States, and all other uniformed services as defined in 
        United States Code, title 42, section 1973ff-6.  
           Sec. 21.  Minnesota Statutes 2004, 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 by the secretary of state, 
        notwithstanding rules on absentee ballot forms, and shall 
        furnish them to any person on request.  By January 1 of each 
        even-numbered year, the secretary of state shall make the forms 
        to be used available to auditors through electronic means.  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.  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. 22.  Minnesota Statutes 2004, section 203B.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REGISTRATION AT TIME OF APPLICATION.] An 
        eligible voter who is not registered to vote but who is 
        otherwise eligible to vote by absentee ballot may register by 
        including a completed voter registration card with the absentee 
        ballot.  The individual shall present proof of residence as 
        required by section 201.061, subdivision 3, to the individual 
        who witnesses the marking of the absentee ballots.  A military 
        voter, as defined in section 203B.01, may register in this 
        manner if voting pursuant to sections 203B.04 to 203B.15, or may 
        register pursuant to sections 203B.16 to 203B.27.  
           Sec. 23.  Minnesota Statutes 2004, section 203B.04, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [ONGOING ABSENTEE STATUS; TERMINATION.] (a) An 
        eligible voter may apply to a county auditor or municipal clerk 
        for status as an ongoing absentee voter who reasonably expects 
        to meet the requirements of section 203B.02, subdivision 1.  
        Each applicant must automatically be provided with an absentee 
        ballot application for each ensuing election other than an 
        election by mail conducted under section 204B.45, and must have 
        the status of ongoing absentee voter indicated on the voter's 
        registration record. 
           (b) Ongoing absentee voter status ends on: 
           (1) the voter's written request; 
           (2) the voter's death; 
           (3) return of an ongoing absentee ballot as undeliverable; 
           (4) a change in the voter's status so that the voter is not 
        eligible to vote under section 201.15 or 201.155; or 
           (5) placement of the voter's registration on inactive 
        status under section 201.171. 
           Sec. 24.  Minnesota Statutes 2004, section 203B.07, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DESIGN OF ENVELOPES.] The return envelope shall 
        be of sufficient size to conveniently enclose and contain the 
        ballot envelope and a voter registration card folded along its 
        perforations.  The return envelope shall be designed to open on 
        the left-hand end.  Notwithstanding any rule to the contrary, 
        the return envelope must be designed in one of the following 
        ways: 
           (1) it must be of sufficient size to contain an additional 
        envelope that when sealed, conceals the signature, 
        identification, and other information; or 
           (2) it must provide an additional flap that when sealed, 
        conceals the signature, identification, and other information. 
        Election officials may open the flap or the additional envelope 
        at any time after receiving the returned ballot to inspect the 
        returned certificate for completeness or to ascertain other 
        information.  A certificate of eligibility to vote by absentee 
        ballot shall be printed on the right hand three-fourths of the 
        back of the envelope.  The certificate shall contain a statement 
        to be signed and sworn by the voter indicating that the voter 
        meets all of the requirements established by law for voting by 
        absentee ballot.  The certificate shall also contain a statement 
        signed by a person who is registered to vote in Minnesota or by 
        a notary public or other individual authorized to administer 
        oaths stating that:  
           (a) the ballots were displayed to that individual unmarked; 
           (b) the voter marked the ballots in that individual's 
        presence without showing how they were marked, or, if the voter 
        was physically unable to mark them, that the voter directed 
        another individual to mark them; and 
           (c) if the voter was not previously registered, the voter 
        has provided proof of residence as required by section 201.061, 
        subdivision 3.  
           The county auditor or municipal clerk shall affix first 
        class postage to the return envelopes.  
           Sec. 25.  Minnesota Statutes 2004, section 203B.11, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERALLY.] Each full-time municipal clerk 
        or school district clerk who has authority under section 203B.05 
        to administer absentee voting laws shall designate election 
        judges to deliver absentee ballots in accordance with this 
        section.  The county auditor may must also designate election 
        judges to perform the duties in this section.  A ballot may be 
        delivered only to an eligible voter who is a temporary or 
        permanent resident or patient in a health care facility or 
        hospital located in the municipality in which the voter 
        maintains residence.  The ballots shall be delivered by two 
        election judges, each of whom is affiliated with a different 
        major political party.  When the election judges deliver or 
        return ballots as provided in this section, they shall travel 
        together in the same vehicle.  Both election judges shall be 
        present when an applicant completes the certificate of 
        eligibility and marks the absentee ballots, and may assist an 
        applicant as provided in section 204C.15.  The election judges 
        shall deposit the return envelopes containing the marked 
        absentee ballots in a sealed container and return them to the 
        clerk on the same day that they are delivered and marked. 
           Sec. 26.  Minnesota Statutes 2004, section 203B.12, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXAMINATION OF RETURN ENVELOPES.] Two or more 
        election judges shall examine each return envelope and shall 
        mark it accepted or rejected in the manner provided in this 
        subdivision.  If a ballot has been prepared under section 
        204B.12, subdivision 2a, or 204B.41, the election judges shall 
        not begin removing ballot envelopes from the return envelopes 
        until 8:00 p.m. on election day, either in the polling place or 
        at an absentee ballot board established under section 203B.13. 
           The election judges shall mark the return envelope 
        "Accepted" and initial or sign the return envelope below the 
        word "Accepted" if the election judges or a majority of them are 
        satisfied that:  
           (1) the voter's name and address on the return envelope are 
        the same as the information provided on the absentee ballot 
        application; 
           (2) the voter's signature on the return envelope is the 
        genuine signature of the individual who made the application for 
        ballots and the certificate has been completed as prescribed in 
        the directions for casting an absentee ballot, except that if a 
        person other than the voter applied for the absentee ballot 
        under applicable Minnesota Rules, the signature is not required 
        to match; 
           (3) the voter is registered and eligible to vote in the 
        precinct or has included a properly completed voter registration 
        application in the return envelope; and 
           (4) the voter has not already voted at that election, 
        either in person or by absentee ballot.  
           There is no other reason for rejecting an absentee ballot.  
        In particular, failure to place the envelope within the security 
        envelope before placing it in the outer white envelope is not a 
        reason to reject an absentee ballot. 
           The return envelope from accepted ballots must be preserved 
        and returned to the county auditor.  
           If all or a majority of the election judges examining 
        return envelopes find that an absent voter has failed to meet 
        one of the requirements prescribed in clauses (1) to (4), they 
        shall mark the return envelope "Rejected," initial or sign it 
        below the word "Rejected," and return it to the county auditor.  
           Sec. 27.  Minnesota Statutes 2004, section 203B.20, is 
        amended to read: 
           203B.20 [CHALLENGES.] 
           Except as provided in this section, the eligibility or 
        residence of a voter whose application for absentee ballots is 
        recorded under section 203B.19 may be challenged in the manner 
        set forth by section 201.195.  The county auditor or municipal 
        clerk shall not be required to serve a copy of the petition and 
        notice of hearing on the challenged voter.  If the absentee 
        ballot application was submitted on behalf of a voter by an 
        individual authorized under section 203B.17, subdivision 1, 
        paragraph (a), the county auditor must attempt to notify the 
        individual who submitted the application of the challenge.  The 
        county auditor may contact other registered voters to request 
        information that may resolve any discrepancies appearing in the 
        application.  All reasonable doubt shall be resolved in favor of 
        the validity of the application.  If the voter's challenge is 
        affirmed, the county auditor shall provide the challenged voter 
        with a copy of the petition and the decision and shall inform 
        the voter of the right to appeal as provided in section 201.195. 
           Sec. 28.  Minnesota Statutes 2004, section 203B.21, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORM.] Absentee ballots under sections 
        203B.16 to 203B.27 shall conform to the requirements of the 
        Minnesota Election Law, except that modifications in the size or 
        form of ballots or envelopes may be made if necessary to satisfy 
        the requirements of the United States postal service.  The 
        return envelope must be designed in one of the following ways: 
           (1) it must be of sufficient size to contain an additional 
        envelope that when sealed, conceals the signature, 
        identification, and other information; or 
           (2) it must provide an additional flap that when sealed, 
        conceals the signature, identification, and other information. 
        The flap or the additional envelope must be perforated to permit 
        election officials to inspect the returned certificate for 
        completeness or to ascertain other information at any time after 
        receiving the returned ballot without opening the return 
        envelope. 
           Sec. 29.  Minnesota Statutes 2004, section 203B.21, 
        subdivision 3, is amended to read: 
           Subd. 3.  [BACK OF RETURN ENVELOPE.] On the back of the 
        return envelope an affidavit form shall appear with space for:  
           (a) The voter's address of present or former residence in 
        Minnesota; 
           (b) A statement indicating the category described in 
        section 203B.16 to which the voter belongs; 
           (c) A statement that the voter has not cast and will not 
        cast another absentee ballot in the same election or elections; 
           (d) A statement that the voter personally marked the 
        ballots without showing them to anyone, or if physically unable 
        to mark them, that the voter directed another individual to mark 
        them; and 
           (e) The voter's military identification card number, 
        passport number, or, if the voter does not have a valid passport 
        or identification card, the signature and certification of an 
        individual authorized to administer oaths under federal law or 
        the law of the place where the oath was administered or a 
        commissioned or noncommissioned officer personnel of the 
        military not below the rank of sergeant or its equivalent. 
           The affidavit shall also contain a signed and dated oath in 
        the form required by section 705 of the Help America Vote Act, 
        Public Law 107-252, which must read: 
           "I swear or affirm, under penalty of perjury, that: 
           I am a member of the uniformed services or merchant marine 
        on active duty or an eligible spouse or dependent of such a 
        member; a United States citizen temporarily residing outside the 
        United States; or other United States citizen residing outside 
        the United States; and I am a United States citizen, at least 18 
        years of age (or will be by the date of the election), and I am 
        eligible to vote in the requested jurisdiction; I have not been 
        convicted of a felony, or other disqualifying offense, or been 
        adjudicated mentally incompetent, or, if so, my voting rights 
        have been reinstated; and I am not registering, requesting a 
        ballot, or voting in any other jurisdiction in the United States 
        except the jurisdiction cited in this voting form.  In voting, I 
        have marked and sealed my ballot in private and have not allowed 
        any person to observe the marking of the ballot, except for 
        those authorized to assist voters under state or federal law.  I 
        have not been influenced. 
           My signature and date below indicate when I completed this 
        document. 
           The information on this form is true, accurate, and 
        complete to the best of my knowledge.  I understand that a 
        material misstatement of fact in completion of this document may 
        constitute grounds for a conviction for perjury." 
           Sec. 30.  Minnesota Statutes 2004, section 203B.24, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CHECK OF VOTER ELIGIBILITY; PROPER 
        EXECUTION OF AFFIDAVIT.] Upon receipt of an absentee ballot 
        returned as provided in sections 203B.16 to 203B.27, the 
        election judges shall compare the voter's name with the names 
        appearing on their copy of the application records to insure 
        that the ballot is from a voter eligible to cast an absentee 
        ballot under sections 203B.16 to 203B.27.  Any discrepancy or 
        disqualifying fact shall be noted on the envelope by the 
        election judges.  The election judges shall mark the return 
        envelope "Accepted" and initial or sign the return envelope 
        below the word "Accepted" if the election judges are satisfied 
        that: 
           (1) the voter's name on the return envelope appears in 
        substantially the same form as on the application records 
        provided to the election judges by the county auditor; 
           (2) the voter has signed the federal oath prescribed 
        pursuant to section 705(b)(2) of the Help America Vote Act, 
        Public Law 107-252; 
           (3) the voter has set forth the voter's military 
        identification number or passport number or, if those numbers do 
        not appear, a person authorized to administer oaths under 
        federal law or the law of the place where the oath was 
        administered or a witness who is military personnel with a rank 
        at or above the rank of sergeant or its equivalent has signed 
        the ballot; and 
           (4) the voter has not already voted at that election, 
        either in person or by absentee ballot. 
           An absentee ballot cast pursuant to sections 203B.16 to 
        203B.27 may only be rejected for the lack of one of clauses (1) 
        to (4).  In particular, failure to place the envelope within the 
        security envelope before placing it in the outer white envelope 
        is not a reason to reject an absentee ballot. 
           Election judges must note the reason for rejection on the 
        back of the envelope in the space provided for that purpose. 
           Failure to return unused ballots shall not invalidate a 
        marked ballot, but a ballot shall not be counted if the 
        affidavit on the return envelope is not properly executed.  In 
        all other respects the provisions of the Minnesota Election Law 
        governing deposit and counting of ballots shall apply.  
           Sec. 31.  Minnesota Statutes 2004, 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, except 
        as provided in subdivision 4, shall state that the candidate:  
           (1) is an eligible voter; 
           (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 
           (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) Candidates for president or vice-president of the 
        United States are not required to file an affidavit of candidacy 
        for office and this subdivision does not apply to those 
        candidates. 
           Sec. 32.  Minnesota Statutes 2004, section 204B.06, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PARTICULAR FEDERAL OFFICES.] Candidates for 
        president or vice-president of the United States are not 
        required to file an affidavit of candidacy for office.  
        Candidates who seek nomination for the following offices office 
        of United States senator or representative shall state the 
        following additional information on the affidavit:  
           (a) (1) for United States senator, that the candidate will 
        be an inhabitant of this state when elected and will be 30 years 
        of age or older and a citizen of the United States for not less 
        than nine years on the next January 3 or, in the case of an 
        election to fill a vacancy, within 21 days after the special 
        election; and 
           (b) (2) for United States representative, that the 
        candidate will be an inhabitant of this state when elected and 
        will be 25 years of age or older and a citizen of the United 
        States for not less than seven years on the next January 3 or, 
        in the case of an election to fill a vacancy, within 21 days 
        after the special election;. 
           Subd. 4a.  [STATE AND LOCAL OFFICES.] Candidates who seek 
        nomination for the following offices shall state the following 
        additional information on the affidavit: 
           (c) (1) for governor or lieutenant governor, that on the 
        first Monday of the next January the candidate will be 25 years 
        of age or older and, on the day of the state general election, a 
        resident of Minnesota for not less than one year; 
           (d) (2) for Supreme Court justice, Court of Appeals judge, 
        or district court judge, that the candidate is learned in the 
        law; 
           (e) (3) for county, municipal, school district, or special 
        district office, that the candidate meets any other 
        qualifications for that office prescribed by law; 
           (f) (4) for senator or representative in the legislature, 
        that on the day of the general or special election to fill the 
        office the candidate will have resided not less than one year in 
        the state and not less than six months in the legislative 
        district from which the candidate seeks election. 
           Sec. 33.  Minnesota Statutes 2004, section 204B.10, 
        subdivision 6, is amended to read: 
           Subd. 6.  [INELIGIBLE VOTER.] Upon receipt of a certified 
        copy of a final judgment or order of a court of competent 
        jurisdiction that a person who has filed an affidavit of 
        candidacy or who has been nominated by petition: 
           (1) has been convicted of treason or a felony and the 
        person's civil rights have not been restored; 
           (2) is under guardianship of the person in which the court 
        order revokes the ward's right to vote; or 
           (3) has been found by a court of law to be legally 
        incompetent; 
        the filing officer shall notify the person by certified mail at 
        the address shown on the affidavit or petition, and, for offices 
        other than President of the United States, Vice President of the 
        United States, United States Senator, and United States 
        Representative in Congress, shall not certify the person's name 
        to be placed on the ballot.  The actions of a filing officer 
        under this subdivision are subject to judicial review under 
        section 204B.44. 
           Sec. 34.  Minnesota Statutes 2004, section 204B.14, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SEPARATE PRECINCTS; COMBINED POLLING PLACE.] (a) 
        The following shall constitute at least one election precinct:  
           (1) each city ward; and 
           (2) each town and each statutory city.  
           (b) A single, accessible, combined polling place may be 
        established no later than June 1 of any year: 
           (1) for any city of the third or fourth class, any town, or 
        any city having territory in more than one county, in which all 
        the voters of the city or town shall cast their ballots; 
           (2) for two contiguous precincts in the same municipality 
        that have a combined total of fewer than 500 registered voters; 
        or 
           (3) for up to four contiguous municipalities located 
        entirely outside the metropolitan area, as defined by section 
        473.121, subdivision 2 200.02, subdivision 24, that are 
        contained in the same county. 
           A copy of the ordinance or resolution establishing a 
        combined polling place must be filed with the county auditor 
        within 30 days after approval by the governing body.  A polling 
        place combined under clause (3) must be approved by the 
        governing body of each participating municipality.  A 
        municipality withdrawing from participation in a combined 
        polling place must do so by filing a resolution of withdrawal 
        with the county auditor no later than May 1 of any year. 
           The secretary of state shall provide a separate polling 
        place roster for each precinct served by the combined polling 
        place.  A single set of election judges may be appointed to 
        serve at a combined polling place.  The number of election 
        judges required must be based on the total number of persons 
        voting at the last similar election in all precincts to be 
        voting at the combined polling place.  Separate ballot boxes 
        must be provided for the ballots from each precinct.  The 
        results of the election must be reported separately for each 
        precinct served by the combined polling place, except in a 
        polling place established under clause (2) where one of the 
        precincts has fewer than ten registered voters, in which case 
        the results of that precinct must be reported in the manner 
        specified by the secretary of state.  
           Sec. 35.  Minnesota Statutes 2004, section 204B.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY; LOCATION.] The governing body 
        of each municipality and of each county with precincts in 
        unorganized territory shall designate by ordinance or resolution 
        a polling place for each election precinct.  Polling places must 
        be designated and ballots must be distributed so that no one is 
        required to go to more than one polling place to vote in a 
        school district and municipal election held on the same day.  
        The polling place for a precinct in a city or in a school 
        district located in whole or in part in the metropolitan area 
        defined by section 473.121 200.02, subdivision 24, shall be 
        located within the boundaries of the precinct or within 3,000 
        feet of one of those boundaries unless a single polling place is 
        designated for a city pursuant to section 204B.14, subdivision 
        2, or a school district pursuant to section 205A.11.  The 
        polling place for a precinct in unorganized territory may be 
        located outside the precinct at a place which is convenient to 
        the voters of the precinct.  If no suitable place is available 
        within a town or within a school district located outside the 
        metropolitan area defined by section 473.121 200.02, subdivision 
        24, then the polling place for a town or school district may be 
        located outside the town or school district within five miles of 
        one of the boundaries of the town or school district. 
           Sec. 36.  Minnesota Statutes 2004, section 204B.16, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ACCESS BY ELDERLY AND HANDICAPPED PERSONS WITH 
        DISABILITIES.] Each polling place shall be accessible to and 
        usable by elderly individuals and physically handicapped 
        individuals with disabilities.  A polling place is deemed to be 
        accessible and usable if it complies with the standards in 
        paragraphs (a) to (f).  
           (a) At least one set of doors must have a minimum width of 
        31 32 inches if the doors must be used to enter or leave the 
        polling place.  
           (b) Any curb adjacent to the main entrance to a polling 
        place must have curb cuts or temporary ramps.  Where the main 
        entrance is not the accessible entrance, any curb adjacent to 
        the accessible entrance must also have curb cuts or temporary 
        ramps.  
           (c) Where the main entrance is not the accessible entrance, 
        a sign shall be posted at the main entrance giving directions to 
        the accessible entrance.  
           (d) At least one set of stairs must have a temporary 
        handrail and ramp if stairs must be used to enter or leave the 
        polling place.  
           (e) No barrier in the polling place may impede the path of 
        the physically handicapped persons with disabilities to the 
        voting booth.  
           (f) At least one handicapped parking space for persons with 
        disabilities, which may be temporarily so designated by the 
        municipality for the day of the election, must be available near 
        the accessible entrance.  
           The doorway, handrails, ramps, and handicapped parking 
        provided pursuant to this subdivision must conform to the 
        standards specified in the State Building Code for accessibility 
        by handicapped persons with disabilities.  
           A governing body shall designate as polling places only 
        those places which meet the standards prescribed in this 
        subdivision unless no available place within a precinct is 
        accessible or can be made accessible. 
           Sec. 37.  Minnesota Statutes 2004, section 204B.18, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BOOTHS; VOTING STATIONS.] Each polling 
        place must contain a number of voting booths or voting stations 
        in proportion to the number of individuals eligible to vote in 
        the precinct.  Each booth or station must be at least six feet 
        high, three feet deep and two feet wide with a shelf at least 
        two feet long and one foot wide placed at a convenient height 
        for writing.  The booth or station shall be provided with a door 
        or curtains permit the voter to vote privately and independently.
        Each accessible polling place must have at least one accessible 
        voting booth or other accessible voting station and beginning 
        with federal and state elections held after December 31, 2005, 
        and county, municipal, and school district elections held after 
        December 31, 2007, one voting system that conforms to section 
        301(a)(3)(B) of the Help America Vote Act, Public Law 107-252.  
        All booths or stations must be constructed so that a voter is 
        free from observation while marking ballots.  In all other 
        polling places every effort must be made to provide at least one 
        accessible voting booth or other accessible voting station.  
        During the hours of voting, the booths or stations must have 
        instructions, a pencil, and other supplies needed to mark the 
        ballots.  If needed, A chair must be provided for elderly and 
        handicapped voters and voters with disabilities to use while 
        voting or waiting to vote.  Stable flat writing surfaces must 
        also be made available to voters who are completing 
        election-related forms.  All ballot boxes, voting booths, voting 
        stations, and election judges must be in open public view in the 
        polling place. 
           Sec. 38.  Minnesota Statutes 2004, section 204B.24, is 
        amended to read: 
           204B.24 [ELECTION JUDGES; OATH.] 
           Each election judge shall sign the following oath before 
        assuming the duties of the office:  
           "I .......... solemnly swear that I will perform the duties 
        of election judge according to law and the best of my ability 
        and will diligently endeavor to prevent fraud, deceit and abuse 
        in conducting this election.  I will perform my duties in a fair 
        and impartial manner and not attempt to create an advantage for 
        my party or for any candidate." 
           The oath shall be attached to the summary statement of the 
        election returns of that precinct.  If there is no individual 
        present who is authorized to administer oaths, the election 
        judges may administer the oath to each other. 
           Sec. 39.  Minnesota Statutes 2004, section 204B.27, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BLANK FORMS.] At least 25 14 days before 
        every state election the secretary of state shall transmit to 
        each county auditor a sufficient number of blank county abstract 
        forms and other examples of any blank forms to be used as the 
        secretary of state deems necessary for the conduct of the 
        election.  County abstract forms may be provided to auditors 
        electronically via the Minnesota State Election Reporting System 
        maintained by the secretary of state, and must be available at 
        least one week prior to the election.  
           Sec. 40.  Minnesota Statutes 2004, section 204C.05, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [ELECTIONS; ORGANIZED TOWN.] The governing body 
        of a town with less than 500 inhabitants according to the most 
        recent federal decennial census, which is located outside the 
        metropolitan area as defined in section 473.121 200.02, 
        subdivision 2 24, may fix a later time for voting to begin at 
        state primary, special, or general elections, if approved by a 
        vote of the town electors at the annual town meeting.  The 
        question of shorter voting hours must be included in the notice 
        of the annual town meeting before the question may be submitted 
        to the electors at the meeting.  The later time may not be later 
        than 10:00 a.m. for special, primary, or general elections.  The 
        town clerk shall either post or publish notice of the changed 
        hours and notify the county auditor of the change 30 days before 
        the election. 
           Sec. 41.  Minnesota Statutes 2004, section 204C.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INDIVIDUALS ALLOWED IN POLLING PLACE; 
        IDENTIFICATION.] (a) Representatives of the secretary of state's 
        office, the county auditor's office, and the municipal or school 
        district clerk's office may be present at the polling place to 
        observe election procedures.  Except for these representatives, 
        election judges, sergeants-at-arms, and challengers, an 
        individual may remain inside the polling place during voting 
        hours only while voting or registering to vote, providing proof 
        of residence for an individual who is registering to vote, or 
        assisting a handicapped voter or a voter who is unable to read 
        English.  During voting hours no one except individuals 
        receiving, marking, or depositing ballots shall approach within 
        six feet of a voting booth, unless lawfully authorized to do so 
        by an election judge.  
           (b) Teachers and elementary or secondary school students 
        participating in an educational activity authorized by section 
        204B.27, subdivision 7, may be present at the polling place 
        during voting hours. 
           (c) Each official on duty in the polling place must wear an 
        identification badge that shows their role in the election 
        process.  The badge must not show their party affiliation. 
           Sec. 42.  Minnesota Statutes 2004, section 204C.07, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [RESIDENCE REQUIREMENT.] A challenger must be a 
        resident of this state. 
           Sec. 43.  Minnesota Statutes 2004, section 204C.07, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RESTRICTIONS ON CONDUCT.] An election judge may 
        not be appointed as a challenger.  The election judges shall 
        permit challengers appointed pursuant to this section to be 
        present in the polling place during the hours of voting and to 
        remain there until the votes are counted and the results 
        declared.  No challenger shall handle or inspect registration 
        cards, files, or lists.  Challengers shall not prepare in any 
        manner any list of individuals who have or have not voted.  They 
        shall not attempt to influence voting in any manner.  They shall 
        not converse with a voter except to determine, in the presence 
        of an election judge, whether the voter is eligible to vote in 
        the precinct.  
           Sec. 44.  Minnesota Statutes 2004, section 204C.08, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [VOTER'S BILL OF RIGHTS.] The county auditor 
        shall prepare and provide to each polling place sufficient 
        copies of a poster setting forth the Voter's Bill of Rights as 
        set forth in this section.  Before the hours of voting are 
        scheduled to begin, the election judges shall post it in a 
        conspicuous location or locations in the polling place.  The 
        Voter's Bill of Rights is as follows: 
                            "VOTER'S BILL OF RIGHTS
           For all persons residing in this state who meet federal 
        voting eligibility requirements: 
           (1) You have the right to be absent from work for the 
        purpose of voting during the morning of election day.  
           (2) If you are in line at your polling place any time 
        between 7:00 a.m. and 8:00 p.m., you have the right to vote.  
           (3) If you can provide the required proof of residence, you 
        have the right to register to vote and to vote on election day.  
           (4) If you are unable to sign your name, you have the right 
        to orally confirm your identity with an election judge and to 
        direct another person to sign your name for you. 
           (5) You have the right to request special assistance when 
        voting.  
           (6) If you need assistance, you may be accompanied into the 
        voting booth by a person of your choice, except by an agent of 
        your employer or union or a candidate.  
           (7) You have the right to bring your minor children into 
        the polling place and into the voting booth with you.  
           (8) If you have been convicted of a felony but your civil 
        rights have been restored your felony sentence has expired (been 
        completed) or you have been discharged from your sentence, you 
        have the right to vote.  
           (9) If you are under a guardianship, you have the right to 
        vote, unless the court order revokes your right to vote. 
           (10) You have the right to vote without anyone in the 
        polling place trying to influence your vote.  
           (10) (11) If you make a mistake or spoil your ballot before 
        it is submitted, you have the right to receive a replacement 
        ballot and vote.  
           (11) (12) You have the right to file a written complaint at 
        your polling place if you are dissatisfied with the way an 
        election is being run.  
           (12) (13) You have the right to take a sample ballot into 
        the voting booth with you.  
           (13) (14) You have the right to take a copy of this Voter's 
        Bill of Rights into the voting booth with you." 
           Sec. 45.  Minnesota Statutes 2004, section 204C.10, is 
        amended to read: 
           204C.10 [PERMANENT REGISTRATION; VERIFICATION OF 
        REGISTRATION.] 
           (a) An individual seeking to vote shall sign a polling 
        place roster which states that the individual is at least 18 
        years of age, a citizen of the United States, has resided in 
        Minnesota for 20 days immediately preceding the election, 
        maintains residence at the address shown, is not under a 
        guardianship in which the individual has not retained court 
        order revokes the individual's right to vote, has not been found 
        by a court of law to be legally incompetent to vote or convicted 
        of a felony without having civil rights restored, is registered 
        and has not already voted in the election.  The roster must also 
        state:  "I understand that deliberately providing false 
        information is a felony punishable by not more than five years 
        imprisonment and a fine of not more than $10,000, or both."  
           (b) A judge may, before the applicant signs the roster, 
        confirm the applicant's name, address, and date of birth.  
           (c) After the applicant signs the roster, the judge shall 
        give the applicant a voter's receipt.  The voter shall deliver 
        the voter's receipt to the judge in charge of ballots as proof 
        of the voter's right to vote, and thereupon the judge shall hand 
        to the voter the ballot.  The voters' receipts must be 
        maintained during the time for notice of filing an election 
        contest. 
           Sec. 46.  Minnesota Statutes 2004, section 204C.12, 
        subdivision 2, is amended to read: 
           Subd. 2.  [STATEMENT OF GROUNDS; OATH.] The challenger 
        shall state the ground for the challenge, and A challenger must 
        be a resident of this state.  The secretary of state shall 
        prepare a form that challengers must complete and sign when 
        making a challenge.  The form must include space to state the 
        ground for the challenge, a statement that the challenge is 
        based on the challenger's personal knowledge, and a statement 
        that the challenge is made under oath.  The form must include a 
        space for the challenger's printed name, signature, telephone 
        number, and address. 
           An election judge shall administer to the challenged 
        individual the following oath: 
           "Do you solemnly swear that you will fully and truly answer 
        all questions put to you concerning your eligibility to vote at 
        this election?"  
           The election judge shall then ask the challenged individual 
        sufficient questions to test that individual's residence and 
        right to vote. 
           Sec. 47.  Minnesota Statutes 2004, section 204C.24, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INFORMATION REQUIREMENTS.] Precinct 
        summary statements shall be submitted by the election judges in 
        every precinct.  For state all elections, the election judges 
        shall complete three or more copies of the summary statements, 
        and each copy shall contain the following information for each 
        kind of ballot:  
           (a) the number of votes each candidate received or the 
        number of yes and no votes on each question, the number of 
        undervotes or partially blank ballots, and the number of 
        overvotes or partially defective ballots with respect to each 
        office or question; 
           (b) the number of totally blank ballots, the number of 
        totally defective ballots, the number of spoiled ballots, and 
        the number of unused ballots; 
           (c) the number of individuals who voted at the election in 
        the precinct; 
           (d) the number of voters registering on election day in 
        that precinct; and 
           (e) the signatures of the election judges who counted the 
        ballots certifying that all of the ballots cast were properly 
        piled, checked, and counted; and that the numbers entered by the 
        election judges on the summary statements correctly show the 
        number of votes cast for each candidate and for and against each 
        question. 
           At least two copies of the summary statement must be 
        prepared for elections not held on the same day as the state 
        elections. 
           Sec. 48.  Minnesota Statutes 2004, section 204C.28, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COUNTY AUDITOR.] Every county auditor 
        shall remain at the auditor's office to receive delivery of the 
        returns, to permit public inspection of the summary statements, 
        and to tabulate the votes until all have been tabulated and the 
        results made known, or until 24 hours have elapsed since the end 
        of the hours for voting, whichever occurs first.  Every county 
        auditor shall, in the presence of the municipal clerk or the 
        election judges who deliver the returns, make a record of all 
        materials delivered, the time of delivery, and the names of the 
        municipal clerk or election judges who made delivery.  The 
        county auditor shall file the record and all envelopes 
        containing ballots in a safe and secure place with envelope 
        seals unbroken.  Access to the record and ballots shall be 
        strictly controlled.  Accountability and a record of access 
        shall be maintained by the county auditor during the period for 
        contesting elections or, if a contest is filed, until the 
        contest has been finally determined.  Thereafter, the record 
        shall be retained in the auditor's office for the same period as 
        the ballots as provided in section 204B.40. 
           The county auditor shall file all envelopes containing 
        ballots in a safe place with seals unbroken.  If the envelopes 
        were previously opened by proper authority for examination or 
        recount, the county auditor shall have the envelopes sealed 
        again and signed by the individuals who made the inspection or 
        recount.  The envelopes may be opened by the county canvassing 
        board if necessary to procure election returns that the election 
        judges inadvertently may have sealed in the envelopes with the 
        ballots.  In that case, the envelopes shall be sealed again and 
        signed in the same manner as otherwise provided in this 
        subdivision.  
           Sec. 49.  Minnesota Statutes 2004, section 204C.50, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SELECTION FOR REVIEW; NOTICE.] (a) 
        Postelection review under this section must be conducted only on 
        the election for president, senator or representative in 
        Congress, constitutional offices, and legislative offices. 
           (b) The Office of the Secretary of State shall, within 
        three days after each state general election beginning in 2006, 
        randomly select 80 precincts for postelection review as defined 
        in this section.  The precincts must be selected so that an 
        equal number of precincts are selected in each congressional 
        district of the state.  Of the precincts in each congressional 
        district, at least five must have had more than 500 votes cast, 
        and at least two must have had fewer than 500 votes cast.  The 
        secretary of state must promptly provide notices of which 
        precincts are chosen to the election administration officials 
        who are responsible for the conduct of elections in those 
        precincts. 
           (b) (c) One week before the state general election 
        beginning in 2006, the secretary of state must post on the 
        office Web site the date, time, and location at which precincts 
        will be randomly chosen for review under this section.  The 
        chair of each major political party may appoint a designee to 
        observe the random selection process. 
           Sec. 50.  Minnesota Statutes 2004, section 204C.50, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SCOPE AND CONDUCT OF REVIEW.] Each review is 
        limited to federal and state offices and must consist of at 
        least the following: 
           (a) The election officials immediately responsible for a 
        precinct chosen for review must conduct the following review and 
        submit the results in writing to the State Canvassing Board 
        before it meets to canvass the election: 
           (1) a hand tally of the paper ballots or electronic ballot 
        marker record, of whatever kind used in that precinct, for each 
        contested election; 
           (2) a recount using the actual machine and software used on 
        election day, if a precinct-count or central-count automated 
        voting system was used; and 
           (3) a comparison of the hand tally with the reported 
        results for the precinct in the county canvassing board report, 
        as well as the actual tape of any automated tabulation produced 
        by any precinct-count or central-count optical scan equipment 
        that may have been used to tabulate votes cast in that precinct. 
           (b) The staff of the Office of the Secretary of State shall 
        conduct or directly supervise a review of the procedures used by 
        the election officials at all levels for a precinct chosen for 
        review, including an inspection of the materials retained for 
        the official 22-month retention period, such as the rosters, the 
        incident log, and the ballots themselves.  The staff must submit 
        a written report to the secretary of state before the next 
        regularly scheduled meeting of the State Canvassing Board. 
           Sec. 51.  Minnesota Statutes 2004, section 204D.03, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [EXCEPTION; CERTAIN PARTISAN CANDIDATES.] (a) If 
        no more than one candidate files for nomination by a major 
        political party for a partisan office, the candidate who filed 
        must be declared the nominee upon the close of filing.  If every 
        candidate for a partisan office has been declared the nominee 
        upon the close of filing, the office must be omitted from the 
        state primary ballot.  If all offices, both partisan and 
        nonpartisan, have been omitted from the state primary ballot in 
        a municipality or county, the governing body of the municipality 
        or county may decide that the state primary will not be 
        conducted in that municipality or county.  
           (b) Within 15 days after the close of filing, each 
        municipal clerk or county auditor whose governing body has 
        decided not to conduct the state primary shall post notice that 
        the offices have been so omitted and the state primary canceled 
        and shall send a copy of the notice to the secretary of state. 
           Sec. 52.  Minnesota Statutes 2004, section 204D.14, 
        subdivision 3, is amended to read: 
           Subd. 3.  [UNCONTESTED JUDICIAL OFFICES.] Judicial 
        offices for a specific court for which there is only one 
        candidate filed must appear after all other judicial offices for 
        that same court on the canary ballot. 
           Sec. 53.  Minnesota Statutes 2004, section 204D.27, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CANVASS; SPECIAL PRIMARY; STATE CANVASSING 
        BOARD.] Not later than four days after the returns of the county 
        canvassing boards are certified to the secretary of state, the 
        State Canvassing Board shall complete its canvass of the special 
        primary.  The secretary of state shall then promptly certify to 
        the county auditors the names of the nominated individuals, 
        prepare notices of nomination, and notify each nominee of the 
        nomination.  
           Sec. 54.  Minnesota Statutes 2004, section 205.175, 
        subdivision 2, is amended to read: 
           Subd. 2.  [METROPOLITAN AREA MUNICIPALITIES.] The governing 
        body of a municipality which is located within a metropolitan 
        county as defined by section 473.121 included in the definition 
        of metropolitan area in section 200.02, subdivision 24, may 
        designate the time during which the polling places will remain 
        open for voting at the next succeeding and all subsequent 
        municipal elections, provided that the polling places shall open 
        no later than 10:00 a.m. and shall close no earlier than 8:00 
        p.m.  The resolution shall remain in force until it is revoked 
        by the municipal governing body. 
           Sec. 55.  Minnesota Statutes 2004, section 205A.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [METROPOLITAN AREA SCHOOL DISTRICTS.] At a 
        school district election in a school district located in whole 
        or in part within a metropolitan county as defined by section 
        473.121 included in the definition of metropolitan area in 
        section 200.02, subdivision 24, the school board, by resolution 
        adopted before giving notice of the election, may designate the 
        time during which the polling places will remain open for voting 
        at the next succeeding and all later school district elections.  
        The polling places must open no later than 10:00 a.m. and close 
        no earlier than 8:00 p.m.  The resolution shall remain in force 
        until it is revoked by the school board. 
           Sec. 56.  Minnesota Statutes 2004, section 206.57, 
        subdivision 5, is amended to read: 
           Subd. 5.  [VOTING SYSTEM FOR DISABLED VOTERS.] In federal 
        and state elections held after December 31, 2005, and in county, 
        municipal, and school district elections held after December 31, 
        2007, the voting method used in each polling place must include 
        a voting system that is accessible for individuals with 
        disabilities, including nonvisual accessibility for the blind 
        and visually impaired in a manner that provides the same 
        opportunity for access and participation, including privacy and 
        independence, as for other voters. 
           Sec. 57.  Minnesota Statutes 2004, section 208.03, is 
        amended to read: 
           208.03 [NOMINATION OF PRESIDENTIAL ELECTORS.] 
           Presidential electors for the major political parties of 
        this state shall be nominated by delegate conventions called and 
        held under the supervision of the respective state central 
        committees of the parties of this state.  On or before primary 
        election day the chair of the major political party shall 
        certify to the secretary of state the names of the persons 
        nominated as presidential electors, the names of eight alternate 
        presidential electors, and the names of the party candidates for 
        president and vice-president. 
           Sec. 58.  Minnesota Statutes 2004, section 208.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORM OF PRESIDENTIAL BALLOTS.] When 
        presidential electors and alternates are to be voted for, a vote 
        cast for the party candidates for president and vice-president 
        shall be deemed a vote for that party's electors and alternates 
        as filed with the secretary of state.  The secretary of state 
        shall certify the names of all duly nominated presidential and 
        vice-presidential candidates to the county auditors of the 
        counties of the state.  Each county auditor, subject to the 
        rules of the secretary of state, shall cause the names of the 
        candidates of each major political party and the candidates 
        nominated by petition to be printed in capital letters, set in 
        type of the same size and style as for candidates on the state 
        white ballot, before the party designation.  To the left of, and 
        on the same line with the names of the candidates for president 
        and vice-president, near the margin, shall be placed a square or 
        box, in which the voters may indicate their choice by marking an 
        "X."  
           The form for the presidential ballot and the relative 
        position of the several candidates shall be determined by the 
        rules applicable to other state officers.  The state ballot, 
        with the required heading, shall be printed on the same piece of 
        paper and shall be below the presidential ballot with a blank 
        space between one inch in width. 
           Sec. 59.  Minnesota Statutes 2004, section 208.05, is 
        amended to read: 
           208.05 [STATE CANVASSING BOARD.] 
           The State Canvassing Board at its meeting on the second 
        Tuesday after each state general election shall open and canvass 
        the returns made to the secretary of state for presidential 
        electors and alternates, prepare a statement of the number of 
        votes cast for the persons receiving votes for these offices, 
        and declare the person or persons receiving the highest number 
        of votes for each office duly elected.  When it appears that 
        more than the number of persons to be elected as presidential 
        electors or alternates have the highest and an equal number of 
        votes, the secretary of state, in the presence of the board 
        shall decide by lot which of the persons shall be declared 
        elected.  The governor shall transmit to each person declared 
        elected a certificate of election, signed by the governor, 
        sealed with the state seal, and countersigned by the secretary 
        of state.  
           Sec. 60.  Minnesota Statutes 2004, section 208.06, is 
        amended to read: 
           208.06 [ELECTORS TO MEET AT CAPITOL; FILLING OF VACANCIES.] 
           The presidential electors and alternate presidential 
        electors, before 12:00 M. on the day before that fixed by 
        Congress for the electors to vote for president and 
        vice-president of the United States, shall notify the governor 
        that they are at the State Capitol and ready at the proper time 
        to fulfill their duties as electors.  The governor shall deliver 
        to the electors present a certificate of the names of all the 
        electors.  If any elector named therein fails to appear before 
        9:00 a.m. on the day, and at the place, fixed for voting for 
        president and vice-president of the United States, an alternate, 
        chosen from among the alternates by lot, shall be appointed to 
        act for that elector.  If more than eight alternates are 
        necessary, the electors present shall, in the presence of the 
        governor, immediately elect by ballot a person to fill the 
        vacancy.  If more than the number of persons required have the 
        highest and an equal number of votes, the governor, in the 
        presence of the electors attending, shall decide by lot which of 
        those persons shall be elected. 
           Sec. 61.  Minnesota Statutes 2004, section 208.07, is 
        amended to read: 
           208.07 [CERTIFICATE OF ELECTORS.] 
           Immediately after the vacancies have been filled, the 
        original electors and alternates present shall certify to the 
        governor the names of the persons elected to complete their 
        number, and the governor shall at once cause written notice to 
        be given to each person elected to fill a vacancy.  The persons 
        so chosen shall be presidential electors and shall meet and act 
        with the other electors. 
           Sec. 62.  Minnesota Statutes 2004, section 208.08, is 
        amended to read: 
           208.08 [ELECTORS TO MEET AT STATE CAPITOL.] 
           The original, alternate, and substituted presidential 
        electors, at 12:00 M., shall meet in the executive chamber at 
        the State Capitol and shall perform all the duties imposed upon 
        them as electors by the Constitution and laws of the United 
        States and this state.  
           Each elector, as a condition of having been chosen under 
        the name of the party of a presidential and a vice-presidential 
        candidate, is obligated to vote for those candidates.  The 
        elector shall speak aloud or affirm in a nonverbal manner the 
        name of the candidate for president and for vice-president for 
        whom the elector is voting and then confirm that vote by written 
        public ballot. 
           If an elector fails to cast a ballot for the presidential 
        or vice-presidential candidate of the party under whose name the 
        elector was chosen, the elector's vote or abstention is 
        invalidated and an alternate presidential elector, chosen by lot 
        from among the alternates, shall cast a ballot in the name of 
        the elector for the presidential and vice-presidential candidate 
        of the party under whose name the elector was chosen.  The 
        invalidation of an elector's vote or abstention on the ballot 
        for president or vice-president does not apply if the 
        presidential candidate under whose party's name the elector was 
        chosen has without condition released the elector or has died or 
        become mentally disabled. 
           Sec. 63.  Minnesota Statutes 2004, section 211B.13, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BRIBERY, ADVANCING MONEY, AND TREATING 
        PROHIBITED.] A person who willfully, directly or indirectly, 
        advances, pays, gives, promises, or lends any money, food, 
        liquor, clothing, entertainment, or other thing of monetary 
        value, or who offers, promises, or endeavors to obtain any 
        money, position, appointment, employment, or other valuable 
        consideration, to or for a person, in order to induce a voter to 
        refrain from voting, or to vote in a particular way, at an 
        election, is guilty of a felony.  This section does not prevent 
        a candidate from stating publicly preference for or support of 
        another candidate to be voted for at the same primary or 
        election.  Refreshments of food or nonalcoholic beverages of 
        nominal having a value up to $5 consumed on the premises at a 
        private gathering or public meeting are not prohibited under 
        this section.  
           Sec. 64.  Minnesota Statutes 2004, section 383B.151, is 
        amended to read: 
           383B.151 [FINANCIAL INTEREST FORBIDDEN.] 
           No official, person authorized to make purchases, or county 
        employee shall be financially interested, either directly or 
        indirectly, in any contract or purchase order for any goods, 
        materials, supplies, equipment or contracted service furnished 
        to or used by any department, board, commission or agency of the 
        county government.  No public official, person authorized to 
        make purchases, or county employee may accept or receive, 
        directly or indirectly from any person, firm or corporation to 
        which any contract or purchase order may be awarded any money or 
        anything of value whatsoever or any promise, obligation or 
        contract for future reward or compensation, except as authorized 
        under section 10A.071, subdivision 3, or 471.895, subdivision 
        3.  Any violation of the provisions of this section shall be a 
        gross misdemeanor. 
           Sec. 65.  Minnesota Statutes 2004, section 447.32, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CANDIDATES; BALLOTS; CERTIFYING ELECTION.] A 
        person who wants to be a candidate for the hospital board shall 
        file an affidavit of candidacy for the election either as member 
        at large or as a member representing the city or town where the 
        candidate resides.  The affidavit of candidacy must be filed 
        with the city or town clerk not more than ten weeks 70 days nor 
        less than eight weeks 56 days before the first Tuesday after the 
        second first Monday in September November of the year in which 
        the general election is held.  The city or town clerk must 
        forward the affidavits of candidacy to the clerk of the hospital 
        district or, for the first election, the clerk of the most 
        populous city or town immediately after the last day of the 
        filing period.  A candidate may withdraw from the election by 
        filing an affidavit of withdrawal with the clerk of the district 
        no later than 5:00 p.m. two days after the last day to file 
        affidavits of candidacy. 
           Voting must be by secret ballot.  The clerk shall prepare, 
        at the expense of the district, necessary ballots for the 
        election of officers.  Ballots must be printed on tan paper and 
        prepared as provided in the rules of the secretary of state.  
        The ballots must be marked and initialed by at least two judges 
        as official ballots and used exclusively at the election.  Any 
        proposition to be voted on may be printed on the ballot provided 
        for the election of officers.  The hospital board may also 
        authorize the use of voting systems subject to chapter 206.  
        Enough election judges may be appointed to receive the votes at 
        each polling place.  The election judges shall act as clerks of 
        election, count the ballots cast, and submit them to the board 
        for canvass.  
           After canvassing the election, the board shall issue a 
        certificate of election to the candidate who received the 
        largest number of votes cast for each office.  The clerk shall 
        deliver the certificate to the person entitled to it in person 
        or by certified mail.  Each person certified shall file an 
        acceptance and oath of office in writing with the clerk within 
        30 days after the date of delivery or mailing of the 
        certificate.  The board may fill any office as provided in 
        subdivision 1 if the person elected fails to qualify within 30 
        days, but qualification is effective if made before the board 
        acts to fill the vacancy. 
           Sec. 66.  Minnesota Statutes 2004, section 471.895, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXCEPTIONS.] (a) The prohibitions in this 
        section do not apply if the gift is: 
           (1) a contribution as defined in section 211A.01, 
        subdivision 5; 
           (2) services to assist an official in the performance of 
        official duties, including but not limited to providing advice, 
        consultation, information, and communication in connection with 
        legislation, and services to constituents; 
           (3) services of insignificant monetary value; 
           (4) a plaque or similar memento recognizing individual 
        services in a field of specialty or to a charitable cause; 
           (5) a trinket or memento of insignificant value costing $5 
        or less; 
           (6) informational material of unexceptional value; or 
           (7) food or a beverage given at a reception, meal, or 
        meeting away from the recipient's place of work by an 
        organization before whom the recipient appears to make a speech 
        or answer questions as part of a program. 
           (b) The prohibitions in this section do not apply if the 
        gift is given: 
           (1) because of the recipient's membership in a group, a 
        majority of whose members are not local officials, and an 
        equivalent gift is given or offered to the other members of the 
        group; 
           (2) by an interested person who is a member of the family 
        of the recipient, unless the gift is given on behalf of someone 
        who is not a member of that family; or 
           (3) by a national or multistate organization of 
        governmental organizations or public officials, if a majority of 
        the dues to the organization are paid from public funds, to 
        attendees at a conference sponsored by that organization, if the 
        gift is food or a beverage given at a reception or meal and an 
        equivalent gift is given or offered to all other attendees. 
           Sec. 67.  Minnesota Statutes 2004, section 524.5-310, is 
        amended to read: 
           524.5-310 [FINDINGS; ORDER OF APPOINTMENT.] 
           (a) The court may appoint a limited or unlimited guardian 
        for a respondent only if it finds by clear and convincing 
        evidence that: 
           (1) the respondent is an incapacitated person; and 
           (2) the respondent's identified needs cannot be met by less 
        restrictive means, including use of appropriate technological 
        assistance. 
           (b) Alternatively, the court, with appropriate findings, 
        may treat the petition as one for a protective order under 
        section 524.5-401, enter any other appropriate order, or dismiss 
        the proceeding. 
           (c) The court shall grant to a guardian only those powers 
        necessitated by the ward's limitations and demonstrated needs 
        and, whenever feasible, make appointive and other orders that 
        will encourage the development of the ward's maximum 
        self-reliance and independence.  Any power not specifically 
        granted to the guardian, following a written finding by the 
        court of a demonstrated need for that power, is retained by the 
        ward.  
           (d) Within 14 days after an appointment, a guardian shall 
        send or deliver to the ward, and counsel if represented at the 
        hearing, a copy of the order of appointment accompanied by a 
        notice which advises the ward of the right to appeal the 
        guardianship appointment in the time and manner provided by the 
        Rules of Appellate Procedure. 
           (e) Each year, within 30 days after the anniversary date of 
        an appointment, a guardian shall send or deliver to the ward a 
        notice of the right to request termination or modification of 
        the guardianship and notice of the status of the ward's right to 
        vote. 
           Sec. 68.  [REPEALER.] 
           Minnesota Statutes 2004, section 204C.50, subdivision 7, is 
        repealed. 
           Minnesota Rules, parts 4501.0300, subparts 1 and 4; 
        4501.0500, subpart 4; 4501.0600; 4503.0200, subpart 4; 
        4503.0300, subpart 2; 4503.0400, subpart 2; 4503.0500, subpart 
        9; and 4503.0800, subpart 1, are repealed. 
           Presented to the governor May 31, 2005 
           Signed by the governor June 3, 2005, 4:55 p.m.

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