1.1 	A bill for an act
1.2 	relating to government; removing certain mandates in transportation, human 
1.3 	services, environment, public safety, local government, animal control, 
1.4 	education, taxes, and employment; suspending certain maintenance of effort 
1.5 	requirements; modifying sales tax exemption; modifying prevailing wage 
1.6 	provisions; repealing provision regarding aggregate value of benefits for 
1.7 	governmental unit group insurance; repealing comparable worth requirements;
1.8 	amending Minnesota Statutes 2010, sections 6.48; 13.202, subdivision 9; 
1.9 	103G.291, subdivisions 3, 4; 115A.931; 122A.414, subdivisions 1a, 4; 122A.60, 
1.10 	subdivisions 1, 1a, 4; 123B.02, subdivision 15; 126C.13, subdivision 5; 126C.44; 
1.11 	134.195, subdivision 8; 134.201, subdivisions 1, 5; 134.32, subdivision 3; 
1.12 	134.341; 134.355, subdivisions 2, 8; 134A.12; 162.02, subdivisions 1, 2, 10; 
1.13 	162.021, subdivision 1; 162.07, subdivision 2; 162.09, subdivisions 1, 2; 
1.14 	162.13, subdivision 2; 171.02, subdivision 2b; 171.321, subdivision 4; 177.42, 
1.15 	subdivisions 4, 6; 216B.2425, subdivision 2; 241.021, subdivision 1; 256M.01; 
1.16 	256M.30, subdivisions 1, 2; 257.69, subdivision 1; 297A.70, subdivisions 2, 3; 
1.17 	299A.77; 326B.133, subdivision 1; 331A.12; 347.14, subdivision 1; 347.565; 
1.18 	383B.914, subdivision 1; 462.355, subdivision 4; 465.719, subdivision 9; 
1.19 	471.697, by adding a subdivision; proposing coding for new law in Minnesota 
1.20 	Statutes, chapters 6; 275; repealing Minnesota Statutes 2010, sections 43A.04, 
1.21 	subdivision 10; 122A.61; 123B.05; 126C.12; 128C.15, subdivision 3; 134.34, 
1.22 	subdivisions 1, 3, 4, 7; 162.02, subdivisions 3, 3a, 3b; 162.09, subdivisions 3, 3a; 
1.23 	162.155; 174.75, subdivision 4; 216C.19, subdivision 1; 254A.08, subdivisions 
1.24 	1, 2; 256G.06; 256M.30, subdivision 5; 326B.145; 340A.403, subdivision 4; 
1.25 	346.13; 346.14; 346.15; 346.155, subdivision 9; 382.265; 388.24, subdivision 4; 
1.26 	395.14; 395.15; 395.16; 395.17; 395.18; 395.19; 395.20; 395.21; 395.22; 395.23; 
1.27 	395.24; 471.6161, subdivision 5; 471.661; 471.991; 471.992, subdivisions 1, 
1.28 	2, 4; 471.993; 471.994; 471.995; 471.9966; 471.997; 471.9981, subdivisions 
1.29 	5a, 5b, 6, 7; 471.999; 626.8468, subdivision 1; 626A.17; Laws 2010, chapter 
1.30 	351, section 72; Minnesota Rules, parts 3525.2340; 8820.2500; 8820.2700; 
1.31 	8820.3100, subparts 1, 2, 5, 6, 7a, 8, 9a, 10; 8820.3300; 8820.3400; 8820.4060; 
1.32 	8820.9920; 8820.9922; 8820.9926, subpart 1; 8820.9936; 8820.9946; 8820.9956; 
1.33 	8820.9961; 8820.9981; 8820.9986; 8820.9990; 8820.9995; 8885.0100; 
1.34 	8885.0200; 8885.0300.
1.35 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	TRANSPORTATION

2.3 	Section 1. Minnesota Statutes 2010, section 162.02, subdivision 1, is amended to read:
2.4 		Subdivision 1.Creation. There is created a county state-aid highway system which 
2.5 	must be established, located, constructed, reconstructed, improved, and maintained as 
2.6 	public highways by the counties under rules not inconsistent with this section made and 
2.7 	promulgated by the commissioner as provided in this chapter. The counties are vested 
2.8 	with the rights, title, easements, and their appurtenances, held by or vested in any of the 
2.9 	towns or municipal subdivisions or dedicated to the public use prior to the time a road or 
2.10 	portion of a road is taken over by the county as a county state-aid highway.

2.11 	Sec. 2. Minnesota Statutes 2010, section 162.02, subdivision 2, is amended to read:
2.12 		Subd. 2.Rules; advisory committee. (a) The rules shall be made and promulgated 
2.13 	by the commissioner acting with the advice of a committee selected by the several county 
2.14 	boards acting through the officers of the statewide association of county commissioners. 
2.15 	The committee shall be composed of nine members so selected that each member shall 
2.16 	be from a different state highway construction district. Not more than five of the nine 
2.17 	members of the committee shall be county commissioners. The remaining members shall 
2.18 	be county highway engineers. In the event that agreement cannot be reached on any rule, 
2.19 	the commissioner's determination shall be final. The rules shall be printed and copies 
2.20 	forwarded to the county engineers of the several counties. For the purposes of this section, 
2.21 	the expedited process for adopting rules established in section 14.389 may be used.
2.22 	(b) Notwithstanding section 15.059, subdivision 5, the committee does not expire.
2.23 	The commissioner shall adopt rules for establishment, location, designation, and 
2.24 	financial assistance to the county state-aid highway system. Such rules may not include 
2.25 	engineering or design standards for county state-aid highway construction, reconstruction, 
2.26 	and maintenance.

2.27 	Sec. 3. Minnesota Statutes 2010, section 162.02, subdivision 10, is amended to read:
2.28 		Subd. 10.Abandonment or revocation. County state-aid highways may be 
2.29 	abandoned, changed, or revoked by joint action of the county board and the commissioner. 
2.30 	If a county state-aid highway is established or located within the limits of a city, it shall 
2.31 	not be abandoned, changed, or revoked without the concurrence of the governing body of 
2.32 	such city; provided, that any county state-aid highway established or located within a city 
2.33 	may be abandoned, or revoked without concurrence if the city refuses or neglects for a 
3.1 	period of one year after submittal to approve plans for the construction of such highway 
3.2 	which plans conform to the construction standards provided in the commissioner's rules.

3.3 	Sec. 4. Minnesota Statutes 2010, section 162.021, subdivision 1, is amended to read:
3.4 		Subdivision 1.Establishment; rules. (a) The commissioner shall establish a natural 
3.5 	preservation routes category within the county state-aid highway system.
3.6 	(b) Natural preservation routes include those routes that possess particular scenic, 
3.7 	environmental, or historical characteristics, such as routes along lakes or through forests, 
3.8 	wetlands, or flood plains, that would be harmed by construction or reconstruction meeting 
3.9 	the engineering standards under section 162.07 or the rules adopted under that section. 
3.10 	(c) The commissioner shall adopt rules establishing minimum construction and 
3.11 	reconstruction standards that address public safety and reflect the function, lower traffic 
3.12 	volume, and slower speed on natural preservation routes. The rules may not establish 
3.13 	standards for natural preservation routes that are higher than the standards for national 
3.14 	forest highways within national forests and state park access roads within state parks. 
3.15 	Design standards specifying the width of vehicle recovery areas on forest highways, 
3.16 	forest and park roads, and on natural preservation routes must minimize harmful 
3.17 	environmental impact. Such rules may not include engineering or design standards for 
3.18 	natural preservation route construction, reconstruction, and maintenance.

3.19 	Sec. 5. Minnesota Statutes 2010, section 162.07, subdivision 2, is amended to read:
3.20 		Subd. 2.Money needs defined. For the purpose of this section, money needs 
3.21 	of each county are defined as the estimated total annual costs of constructing, over a 
3.22 	period of 25 years, the county state-aid highway system in that county. Costs incidental to 
3.23 	construction, or a specified portion thereof as set forth in the commissioner's rules may be 
3.24 	included in determining money needs. To avoid variances in costs due to differences in 
3.25 	construction policy, construction costs shall be estimated on the basis of the engineering 
3.26 	standards developed cooperatively by the commissioner and the county engineers of 
3.27 	the several counties.

3.28 	Sec. 6. Minnesota Statutes 2010, section 162.09, subdivision 1, is amended to read:
3.29 		Subdivision 1.Creation; mileage limitation; rules. (a) There is created a 
3.30 	municipal state-aid street system within statutory and home rule charter cities having 
3.31 	a population of 5,000 or more. The extent of the municipal state-aid street system for 
3.32 	a city shall not exceed:
4.1 	(1) 20 percent of the total miles of city streets and county roads partially or totally 
4.2 	within the jurisdiction of that city; plus
4.3 	(2) the mileage of all trunk highways reverted or turned back to the jurisdiction of 
4.4 	the city pursuant to law on and after July 1, 1965; plus
4.5 	(3) the mileage of county highways reverted or turned back to the jurisdiction of the 
4.6 	city pursuant to law on or after May 11, 1994.
4.7 	(b) For purposes of this subdivision, the total miles of city streets and county roads 
4.8 	within the jurisdiction of a city includes all miles of county highways turned back to that 
4.9 	city's jurisdiction on or after May 11, 1994.
4.10 	(c) The system shall be established, located, constructed, reconstructed, improved, 
4.11 	and maintained as public highways partially or totally within such cities under rules, not 
4.12 	inconsistent with this section, made and promulgated by the commissioner as hereinafter 
4.13 	provided.

4.14 	Sec. 7. Minnesota Statutes 2010, section 162.09, subdivision 2, is amended to read:
4.15 		Subd. 2.Rules; advisory committee. (a) The rules shall be made and promulgated 
4.16 	by the commissioner acting with the advice of a committee selected by the governing 
4.17 	bodies of such cities, acting through the officers of the statewide association of municipal 
4.18 	officials. The committee shall be composed of 12 members, so selected that there shall be 
4.19 	one member from each state highway construction district and in addition one member 
4.20 	from each city of the first class. Not more than six members of the committee shall be 
4.21 	elected officials of the cities. The remaining members of the committee shall be city 
4.22 	engineers. In the event that agreement cannot be reached on any rule the commissioner's 
4.23 	determination shall be final. The rules shall be printed and copies forwarded to the clerks 
4.24 	and engineers of the cities. For the purposes of this section, the expedited process for 
4.25 	adopting rules established in section 14.389 may be used.
4.26 	(b) Notwithstanding section 15.059, subdivision 5, the committee does not expire.
4.27 	The commissioner shall adopt rules for establishment, location, designation, and 
4.28 	financial assistance to the municipal state-aid street system. Such rules may not include 
4.29 	engineering or design standards for municipal state-aid street construction, reconstruction, 
4.30 	and maintenance.

4.31 	Sec. 8. Minnesota Statutes 2010, section 162.13, subdivision 2, is amended to read:
4.32 		Subd. 2.Money needs defined. For the purpose of this section money needs of each 
4.33 	city having a population of 5,000 or more are defined as the estimated cost of constructing 
4.34 	and maintaining over a period of 25 years the municipal state-aid street system in such 
5.1 	city. Right-of-way costs and drainage shall be included in money needs. Lighting costs 
5.2 	and other costs incidental to construction and maintenance, or a specified portion of such 
5.3 	costs, as set forth in the commissioner's rules, may be included in determining money 
5.4 	needs. When a county locates a county state-aid highway over a portion of a street in any 
5.5 	such city and the remaining portion is designated as a municipal state-aid street only the 
5.6 	construction and maintenance costs of the portion of the street other than the portions taken 
5.7 	over by the county shall be included in the money needs of the city. To avoid variances 
5.8 	in costs due to differences in construction and maintenance policy, construction and 
5.9 	maintenance costs shall be estimated on the basis of the engineering standards developed 
5.10 	cooperatively by the commissioner and the engineers, or a committee thereof, of the cities.

5.11 	Sec. 9. RULEMAKING; ELIMINATION OF ENGINEERING STANDARDS.
 5.12 	(a) By December 31, 2011, the commissioner of transportation shall amend 
5.13 	Minnesota Rules to (1) eliminate any references to engineering and design standards 
5.14 	previously established by the commissioner under Minnesota Rules, chapter 8820; and (2) 
5.15 	identify approved engineering and design standards under Minnesota Rules, chapter 8820, 
5.16 	only as those standards developed by the several cities with respect to municipal state-aid 
5.17 	streets, or the several counties with respect to county state-aid highways.
5.18 	(b) The rules adopted by the commissioner under paragraph (a) are exempt from 
5.19 	the rulemaking provisions of Minnesota Statutes, chapter 14. The rules are subject to 
5.20 	Minnesota Statutes, section 14.386, except that, notwithstanding paragraph (b) of that 
5.21 	section, the rules continue in effect until repealed or superseded by other law or rule.

5.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

5.23 	Sec. 10.  REPEALER.
 5.24 	(a) Minnesota Statutes 2010, sections 162.02, subdivisions 3, 3a, and 3b; 162.09, 
5.25 	subdivisions 3 and 3a; 162.155; and 174.75, subdivision 4, are repealed.
5.26 	(b) Minnesota Rules, parts 8820.2500; 8820.2700; 8820.3100, subparts 1, 2, 5, 6, 
5.27 	7a, 8, 9a, and 10; 8820.3300; 8820.3400; 8820.4060; 8820.9920; 8820.9922; 8820.9926, 
5.28 	subpart 1; 8820.9936; 8820.9946; 8820.9956; 8820.9961; 8820.9981; 8820.9986; 
5.29 	8820.9990; and 8820.9995, are repealed.
5.30 	(c) Laws 2010, chapter 351, section 72, is repealed.

6.1 	ARTICLE 2
6.2 	HUMAN SERVICES

6.3 	Section 1. Minnesota Statutes 2010, section 256M.01, is amended to read:
6.4 	256M.01 CITATION.
6.5 	Sections 256M.01 to 256M.80 may be cited as the "Children and Community 
6.6 	Services Act." This act establishes a fund to address the needs of children, adolescents, 
6.7 	and adults within each county in accordance with a service plan entered into by the board 
6.8 	of county commissioners of each county and the commissioner. The service plan shall 
6.9 	specify the outcomes to be achieved, the general strategies to be employed, and the 
6.10 	respective state and county roles. The service plan shall be reviewed and updated every 
6.11 	two years, or sooner if both the state and the county deem it necessary.

6.12 	Sec. 2. Minnesota Statutes 2010, section 256M.30, subdivision 1, is amended to read:
6.13 		Subdivision 1.Service plan submitted to commissioner. Effective January 1, 
6.14 	2004, and each two-year period thereafter, Each county must have a biennial service 
6.15 	plan approved by the commissioner in order to receive funds. Counties may submit 
6.16 	multicounty or regional service plans.

6.17 	Sec. 3. Minnesota Statutes 2010, section 256M.30, subdivision 2, is amended to read:
6.18 		Subd. 2.Contents. The service plan shall be completed in a form prescribed by 
6.19 	the commissioner. The plan must include:
6.20 	(1) a statement of the needs of the children, adolescents, and adults who experience 
6.21 	the conditions defined in section 256M.10, subdivision 2, paragraph (a), and strengths and 
6.22 	resources available in the community to address those needs;
6.23 	(2) strategies the county will pursue to achieve the performance targets. Strategies 
6.24 	must include specification of how funds under this section and other community resources 
6.25 	will be used to achieve desired performance targets;
6.26 	(3) a description of the county's process to solicit public input and a summary of 
6.27 	that input;
6.28 	(4) beginning with the service plans submitted for the period from January 1, 
6.29 	2006, through December 31, 2007, performance targets on statewide indicators for each 
6.30 	county to measure outcomes of children's mental health, and child safety, permanency, 
6.31 	and well-being. The commissioner shall consult with counties and other stakeholders to 
6.32 	develop these indicators and collect baseline data to inform the establishment of individual 
6.33 	county performance targets for the 2006-2007 biennium and subsequent plans; and
7.1 	(5) a budget for services to be provided with funds under this section. The county 
7.2 	must budget at least 40 percent of funds appropriated under sections 256M.01 to 256M.80
7.3 	for services to ensure the mental health, safety, permanency, and well-being of children 
7.4 	from low-income families. The commissioner may reduce the portion of child and 
7.5 	community services funds that must be budgeted by a county for services to children in 
7.6 	low-income families if:
7.7 	(i) the incidence of children in low-income families within the county's population is 
7.8 	significantly below the statewide median; or
7.9 	(ii) the county has successfully achieved past performance targets for children's 
7.10 	mental health, and child safety, permanency, and well-being and its proposed service plan 
7.11 	is judged by the commissioner to provide an adequate level of service to the population 
7.12 	with less funding.

7.13 	Sec. 4.  REPEALER.
 7.14 	Minnesota Statutes 2010, section 256M.30, subdivision 5, is repealed.

7.15 	ARTICLE 3
7.16 	ENVIRONMENT

7.17 	Section 1. Minnesota Statutes 2010, section 103G.291, subdivision 3, is amended to 
7.18 	read:
7.19 		Subd. 3.Water supply plans; demand reduction. (a) Every public water supplier 
7.20 	serving more than 1,000 people must submit a water supply plan to the commissioner 
7.21 	for approval by January 1, 1996. In accordance with guidelines developed by the 
7.22 	commissioner, the plan must address projected demands, adequacy of the water supply 
7.23 	system and planned improvements, existing and future water sources, natural resource 
7.24 	impacts or limitations, emergency preparedness, water conservation, supply and demand 
7.25 	reduction measures, and allocation priorities that are consistent with section 103G.261. 
7.26 	Public water suppliers must update their plan and, upon notification, submit it to the 
7.27 	commissioner for approval every ten years.
7.28 	(b) The water supply plan in paragraph (a) is required for all communities in the 
7.29 	metropolitan area, as defined in section 473.121, with a municipal water supply system 
7.30 	and is a required element of the local comprehensive plan required under section 473.859. 
7.31 	Water supply plans or updates submitted after December 31, 2008, must be consistent 
7.32 	with the metropolitan area master water supply plan required under section 473.1565, 
7.33 	subdivision 1, paragraph (a), clause (2).
8.1 	(c) Public water suppliers serving more than 1,000 people must employ water 
8.2 	use demand reduction measures, including a conservation rate structure, as defined in 
8.3 	subdivision 4, paragraph (a), unless exempted under subdivision 4, paragraph (c), before 
8.4 	requesting approval from the commissioner of health under section 144.383, paragraph 
8.5 	(a), to construct a public water supply well or requesting an increase in the authorized 
8.6 	volume of appropriation. A public water supplier in the metropolitan area, as defined 
8.7 	in section 473.121, subdivision 2, that serves more than 1,000 people must include a 
8.8 	conservation rate structure, as defined in subdivision 4, paragraph (a), unless exempted 
8.9 	under subdivision 4, paragraph (c). Demand reduction measures must include evaluation 
8.10 	of conservation rate structures and a public education program that may include a toilet 
8.11 	and showerhead retrofit program.
8.12 	(d) Public water suppliers serving more than 1,000 people must submit records 
8.13 	that indicate the number of connections and amount of use by customer category and 
8.14 	volume of water unaccounted for with the annual report of water use required under 
8.15 	section 103G.281, subdivision 3.
8.16 	(e) For the purposes of this section, "public water supplier" means an entity 
8.17 	that owns, manages, or operates a public water supply, as defined in section 144.382, 
8.18 	subdivision 4.

8.19 	Sec. 2. Minnesota Statutes 2010, section 103G.291, subdivision 4, is amended to read:
8.20 		Subd. 4.Conservation rate structure required. (a) For the purposes of this 
8.21 	section, "conservation rate structure" means a rate structure that encourages conservation 
8.22 	and may include increasing block rates, seasonal rates, time of use rates, individualized 
8.23 	goal rates, or excess use rates. The rate structure must consider each residential unit as an 
8.24 	individual user in multiple-family dwellings.
8.25 	(b) To encourage conservation, a public water supplier serving more than 1,000 
8.26 	people in the metropolitan area, as defined in section 473.121, subdivision 2, that serves 
8.27 	more than 1,000 people shall use a conservation rate structure by January 1, 2010. All 
8.28 	remaining public water suppliers serving more than 1,000 people shall use a conservation 
8.29 	rate structure by January 1, 2013.
8.30 	(c) A public water supplier without the proper measuring equipment to track the 
8.31 	amount of water used by its users, as of July 1, 2008, is exempt from this subdivision and 
8.32 	the conservation rate structure requirement under subdivision 3, paragraph (c).

8.33 	Sec. 3. Minnesota Statutes 2010, section 115A.931, is amended to read:
8.34 	115A.931 YARD WASTE PROHIBITION.
9.1 	(a) Except as authorized by the agency, in the metropolitan area after January 1, 
9.2 	1990, and outside the metropolitan area after January 1, 1992, a person may not place 
9.3 	yard waste:
9.4 	(1) in mixed municipal solid waste;
9.5 	(2) in a disposal facility; or
9.6 	(3) in a resource recovery facility except for the purposes of reuse, composting, or 
9.7 	cocomposting.
9.8 	(b) MS 2008 [Renumbered 115A.03, subd 38]
9.9 	(c) On or after January 1, 2010, a person may not place yard waste or 
9.10 	source-separated compostable materials generated in a metropolitan county in a plastic bag 
9.11 	delivered to a transfer station or compost facility unless the bag meets all the specifications 
9.12 	in ASTM Standard Specification for Compostable Plastics (D6400). For purposes of this 
9.13 	paragraph, "metropolitan county" has the meaning given in section 473.121, subdivision 
9.14 	4, and "ASTM" has the meaning given in section 296A.01, subdivision 6.
9.15 	(d) A person who immediately empties a plastic bag containing yard waste or 
9.16 	source-separated compostable materials delivered to a transfer station or compost facility 
9.17 	and removes the plastic bag from the transfer station or compost facility is exempt from 
9.18 	paragraph (c).
9.19 	(e) Residents of a city of the first class that currently contracts for the collection of 
9.20 	yard waste are exempt from paragraph (c) until January 1, 2013, if, by that date, the 
9.21 	city implements a citywide source-separated compostable materials collection program 
9.22 	using durable carts.

9.23 	Sec. 4. Minnesota Statutes 2010, section 216B.2425, subdivision 2, is amended to read:
9.24 		Subd. 2.List development; transmission projects report. (a) By November 
9.25 	1 of each odd-numbered year, a transmission projects report must be submitted to the 
9.26 	commission by each utility, organization, or company that:
9.27 	(1) is a public utility, a municipal utility, a cooperative electric association, the 
9.28 	generation and transmission organization that serves each utility or association, or a 
9.29 	transmission company; and
9.30 	(2) owns or operates electric transmission lines in Minnesota.
9.31 	(b) The report may be submitted jointly or individually to the commission.
9.32 	(c) The report must:
9.33 	(1) list specific present and reasonably foreseeable future inadequacies in the 
9.34 	transmission system in Minnesota;
9.35 	(2) identify alternative means of addressing each inadequacy listed;
10.1 	(3) identify general economic, environmental, and social issues associated with 
10.2 	each alternative; and
10.3 	(4) provide a summary of public input related to the list of inadequacies and the role 
10.4 	of local government officials and other interested persons in assisting to develop the list 
10.5 	and analyze alternatives.
10.6 	(d) To meet the requirements of this subdivision, reporting parties may rely on 
10.7 	available information and analysis developed by a regional transmission organization 
10.8 	or any subgroup of a regional transmission organization and may develop and include 
10.9 	additional information as necessary.

10.10 	Sec. 5.  REPEALER.
 10.11 	Minnesota Statutes 2010, section 216C.19, subdivision 1; and Minnesota Rules, 
10.12 	parts 8885.0100; 8885.0200; and 8885.0300, are repealed.

10.13 	ARTICLE 4
10.14 	PUBLIC SAFETY AND COURTS

10.15 	Section 1. Minnesota Statutes 2010, section 134A.12, is amended to read:
10.16 	134A.12 TAXABLE AS COSTS.
10.17 	The law library fee is a cost in the action and taxable as such, and is to be allotted 
10.18 	for the support of the library. If a county has a surplus in its law library fund, the surplus 
10.19 	funds may be allotted for costs relating to court facilities under section 484.77.

10.20 	Sec. 2. Minnesota Statutes 2010, section 241.021, subdivision 1, is amended to read:
10.21 		Subdivision 1.Correctional facilities; inspection; licensing. (a) Except as 
10.22 	provided in paragraph (b) paragraphs (b) and (g), the commissioner of corrections shall 
10.23 	inspect and license all correctional facilities throughout the state, whether public or private, 
10.24 	established and operated for the detention and confinement of persons detained or confined 
10.25 	therein according to law except to the extent that they are inspected or licensed by other 
10.26 	state regulating agencies. The commissioner shall promulgate pursuant to chapter 14, rules 
10.27 	establishing minimum standards for these facilities with respect to their management, 
10.28 	operation, physical condition, and the security, safety, health, treatment, and discipline 
10.29 	of persons detained or confined therein. Commencing September 1, 1980, no individual, 
10.30 	corporation, partnership, voluntary association, or other private organization legally 
10.31 	responsible for the operation of a correctional facility may operate the facility unless 
10.32 	licensed by the commissioner of corrections. Private adult correctional facilities shall have 
11.1 	the authority of section 624.714, subdivision 13, if the Department of Corrections licenses 
11.2 	the facility with such authority and the facility meets requirements of section 243.52. The 
11.3 	commissioner shall review the correctional facilities described in this subdivision at least 
11.4 	once every biennium, except as otherwise provided herein, to determine compliance with 
11.5 	the minimum standards established pursuant to this subdivision. The commissioner shall 
11.6 	grant a license to any facility found to conform to minimum standards or to any facility 
11.7 	which, in the commissioner's judgment, is making satisfactory progress toward substantial 
11.8 	conformity and the interests and well-being of the persons detained or confined therein 
11.9 	are protected. The commissioner may grant licensure up to two years. The commissioner 
11.10 	shall have access to the buildings, grounds, books, records, staff, and to persons detained 
11.11 	or confined in these facilities. The commissioner may require the officers in charge of 
11.12 	these facilities to furnish all information and statistics the commissioner deems necessary, 
11.13 	at a time and place designated by the commissioner. The commissioner may require that 
11.14 	any or all such information be provided through the Department of Corrections detention 
11.15 	information system. The education program offered in a correctional facility for the 
11.16 	detention or confinement of juvenile offenders must be approved by the commissioner of 
11.17 	education before the commissioner of corrections may grant a license to the facility.
11.18 	(b) For juvenile facilities licensed by the commissioner of human services, the 
11.19 	commissioner may inspect and certify programs based on certification standards set forth 
11.20 	in Minnesota Rules. For the purpose of this paragraph, "certification" has the meaning 
11.21 	given it in section 245A.02.
11.22 	(c) Any state agency which regulates, inspects, or licenses certain aspects of 
11.23 	correctional facilities shall, insofar as is possible, ensure that the minimum standards 
11.24 	it requires are substantially the same as those required by other state agencies which 
11.25 	regulate, inspect, or license the same aspects of similar types of correctional facilities, 
11.26 	although at different correctional facilities.
11.27 	(d) Nothing in this section shall be construed to limit the commissioner of 
11.28 	corrections' authority to promulgate rules establishing standards of eligibility for counties 
11.29 	to receive funds under sections 401.01 to 401.16, or to require counties to comply with 
11.30 	operating standards the commissioner establishes as a condition precedent for counties 
11.31 	to receive that funding.
11.32 	(e) When the commissioner finds that any facility described in paragraph (a), except 
11.33 	foster care facilities for delinquent children and youth as provided in subdivision 2, does 
11.34 	not substantially conform to the minimum standards established by the commissioner and 
11.35 	is not making satisfactory progress toward substantial conformance, the commissioner 
11.36 	shall promptly notify the chief executive officer and the governing board of the facility 
12.1 	of the deficiencies and order that they be remedied within a reasonable period of time. 
12.2 	The commissioner may by written order restrict the use of any facility which does not 
12.3 	substantially conform to minimum standards to prohibit the detention of any person 
12.4 	therein for more than 72 hours at one time. When, after due notice and hearing, the 
12.5 	commissioner finds that any facility described in this subdivision, except county jails and 
12.6 	lockups as provided in sections 641.26, 642.10, and 642.11, does not conform to minimum 
12.7 	standards, or is not making satisfactory progress toward substantial compliance therewith, 
12.8 	the commissioner may issue an order revoking the license of that facility. After revocation 
12.9 	of its license, that facility shall not be used until its license is renewed. When the 
12.10 	commissioner is satisfied that satisfactory progress towards substantial compliance with 
12.11 	minimum standard is being made, the commissioner may, at the request of the appropriate 
12.12 	officials of the affected facility supported by a written schedule for compliance, grant an 
12.13 	extension of time for a period not to exceed one year.
12.14 	(f) As used in this subdivision, "correctional facility" means any facility, including a 
12.15 	group home, having a residential component, the primary purpose of which is to serve 
12.16 	persons placed therein by a court, court services department, parole authority, or other 
12.17 	correctional agency having dispositional power over persons charged with, convicted, 
12.18 	or adjudicated to be guilty or delinquent.
12.19 	(g) Notwithstanding any law to the contrary, temporary detention facilities 
12.20 	and detoxification centers are not subject to the requirements of this section and the 
12.21 	corresponding rules promulgated by the commissioner.

12.22 	Sec. 3. Minnesota Statutes 2010, section 257.69, subdivision 1, is amended to read:
12.23 		Subdivision 1.Representation by counsel. In all proceedings under sections 
12.24 	257.51 to 257.74, any party may be represented by counsel. The county attorney shall 
12.25 	represent the public authority. The court shall may appoint counsel for a party who is 
12.26 	unable to pay timely for counsel in proceedings under sections 257.51 to 257.74.

12.27 	Sec. 4.  REPEALER.
 12.28 	Minnesota Statutes 2010, sections 254A.08, subdivisions 1 and 2; 256G.06; 388.24, 
12.29 	subdivision 4; 626.8468, subdivision 1; and 626A.17, are repealed.

13.1 	ARTICLE 5
13.2 	GENERAL LOCAL GOVERNMENT

13.3 	Section 1. Minnesota Statutes 2010, section 6.48, is amended to read:
13.4 	6.48 EXAMINATION OF COUNTIES; COST, FEES.
13.5 	(a) All the powers and duties conferred and imposed upon the state auditor shall 
13.6 	be exercised and performed by the state auditor in respect to the offices, institutions, 
13.7 	public property, and improvements of several counties of the state. At least once in each 
13.8 	year, if funds and personnel permit, the state auditor may visit, without previous notice, 
13.9 	each county and make a thorough examination of all accounts and records relating to the 
13.10 	receipt and disbursement of the public funds and the custody of the public funds and 
13.11 	other property. If the audit is performed by a private certified public accountant, the state 
13.12 	auditor may require additional information from the private certified public accountant as 
13.13 	the state auditor deems in the public interest. The state auditor may accept the audit or 
13.14 	make additional examinations as the state auditor deems to be in the public interest. The 
13.15 	state auditor shall prescribe and install systems of accounts and financial reports that shall 
13.16 	be uniform, so far as practicable, for the same class of offices. A copy of the report of 
13.17 	such examination shall be filed and be subject to public inspection in the office of the state 
13.18 	auditor and another copy in the office of the auditor of the county thus examined. The state 
13.19 	auditor may accept the records and audit, or any part thereof, of the Department of Human 
13.20 	Services in lieu of examination of the county social welfare funds, if such audit has been 
13.21 	made within any period covered by the state auditor's audit of the other records of the 
13.22 	county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance 
13.23 	in any office of such county, such report shall be filed with the county attorney of the 
13.24 	county, and the county attorney shall institute such civil and criminal proceedings as the 
13.25 	law and the protection of the public interests shall require.
13.26 	(b) The county receiving any examination shall pay to the state general fund, 
13.27 	notwithstanding the provisions of section 16A.125, the total cost and expenses of such 
13.28 	examinations, including the salaries paid to the examiners while actually engaged in 
13.29 	making such examination. The state auditor on deeming it advisable may bill counties, 
13.30 	having a population of 200,000 or over, monthly for services rendered and the officials 
13.31 	responsible for approving and paying claims shall cause said bill to be promptly paid. The 
13.32 	general fund shall be credited with all collections made for any such examinations. 
13.33 	(c) Notwithstanding paragraph (a), a county may provide for an audit to be 
13.34 	performed by a private certified public accountant. The audit performed under this 
13.35 	paragraph must meet the standards and be in the form required by the state auditor. 
14.1 	The state auditor may require additional information from the private certified public 
14.2 	accountant as the state auditor deems in the public interest, but the state auditor must 
14.3 	accept the audit unless the state auditor determines that it does not meet recognized 
14.4 	auditing industry standards. A county audited by a private public accountant cannot be 
14.5 	required to pay to the state general fund any costs for state auditor services.

14.6 	Sec. 2. [6.485] FEDERAL SINGLE AUDIT.
14.7 	A political subdivision that prepares a single audit that meets the requirements in 
14.8 	United States Code, title 31, section 7501 et seq., may submit the audit to the state auditor 
14.9 	to satisfy the audit requirements of this chapter.

14.10 	Sec. 3. Minnesota Statutes 2010, section 13.202, subdivision 9, is amended to read:
14.11 		Subd. 9.Municipal rights. (a) Self-insurer claims. Disclosure of information 
14.12 	about individual claims filed by the employees of a municipality which is a self-insurer is 
14.13 	governed by section 471.617, subdivision 5.
14.14 	(b) Meetings of governing bodies. Treatment of data discussed at meetings of 
14.15 	governing bodies is governed by section 13D.05.
14.16 	(c) Job evaluation system reports. Treatment of reports containing the results of 
14.17 	job evaluation systems is governed by section 471.995.
14.18 	(d) Pay equity compliance. Implementation reports of equitable compensation 
14.19 	plans are classified by section 471.9981, subdivision 5b.

14.20 	Sec. 4. Minnesota Statutes 2010, section 299A.77, is amended to read:
14.21 	299A.77 ALCOHOL ENFORCEMENT ACCOUNT; APPROPRIATION.
14.22 	(a) An alcohol enforcement account is created in the special revenue fund, consisting 
14.23 	of money credited to the account by law. Money in the account may be appropriated 
14.24 	by law for (1) costs of the Alcohol and Gambling Division related to administration 
14.25 	and enforcement of sections 340A.403, subdivision 4;340A.414, subdivision 1a;, and 
14.26 	340A.504, subdivision 7; and (2) costs of the State Patrol.
14.27 	(b) The commissioner shall transfer from the account to the trunk highway fund 
14.28 	$3,500,000 in fiscal year 2004 and $3,700,000 in fiscal year 2005, or so much thereof as 
14.29 	is necessary to pay costs of adding State Patrol positions.

14.30 	Sec. 5. Minnesota Statutes 2010, section 326B.133, subdivision 1, is amended to read:
14.31 		Subdivision 1.Designation.  Each municipality shall may designate a building 
14.32 	official to administer the code. A municipality may designate no more than one building 
15.1 	official responsible for code administration defined by each certification category created 
15.2 	by statute or rule. Two or more municipalities may combine in the designation of a 
15.3 	building official for the purpose of administering the provisions of the code within their 
15.4 	communities. In those municipalities for which no building officials have been designated, 
15.5 	the state building official may use whichever state employees are necessary to perform 
15.6 	the duties of the building official until the municipality makes a temporary or permanent 
15.7 	designation. All costs incurred by virtue of these services rendered by state employees 
15.8 	must be borne by the involved municipality and receipts arising from these services must 
15.9 	be paid to the commissioner.

15.10 	Sec. 6. Minnesota Statutes 2010, section 331A.12, is amended to read:
15.11 	331A.12 WEB SITE PUBLICATION OF LOCAL TRANSPORTATION RFP.
15.12 		Subdivision 1.Definitions. (a) The terms defined in this subdivision and section 
15.13 	331A.01 apply to this section.  
15.14 	(b) "Web site" means a specific, addressable location provided on a server connected 
15.15 	to the Internet and hosting World Wide Web pages and other files that are generally 
15.16 	accessible on the Internet all or most of the day.
15.17 		Subd. 2.Designation. At the meeting of the governing body of the local public 
15.18 	corporation political subdivision at which the governing body must designate its official 
15.19 	newspaper for the year, the governing body may designate in the same manner publication 
15.20 	of transportation projects, proceedings, official notices, and summaries on the local public 
15.21 	corporation's political subdivision's Web site. Publication on the Web site may be used 
15.22 	in place of or in addition to any other required form of publication. Each year after 
15.23 	designating publication on the Web site for transportation projects, proceedings, official 
15.24 	notices, and summaries, the local public corporation political subdivision must publish in 
15.25 	a qualified newspaper in the jurisdiction and on the Web site, notice that the local public 
15.26 	corporation political subdivision will publish any advertisements for bids, proceedings, 
15.27 	official notices, and summaries on its Web site.
15.28 		Subd. 3.Form, time for publication same. A local public corporation political 
15.29 	subdivision that publishes on its Web site under this section must post the information in 
15.30 	substantially the same format and for the same period of time as required for publication 
15.31 	in an official newspaper or other print publication.
15.32 		Subd. 4.Record retention. A local public corporation political subdivision that 
15.33 	publishes notice on its Web site under this section must ensure that a permanent record of 
15.34 	publication is maintained in a form accessible by the public.
16.1 		Subd. 5.Print copies. When a political subdivision publishes exclusively on the 
16.2 	Web site, it must also make print copies of all published documents available at the main 
16.3 	office of the political subdivision, any other government offices designated by the political 
16.4 	subdivision, all public libraries within the jurisdiction, and by mail upon request.
16.5 		Subd. 6.Newspaper notice of Web site publication. Each year after designating 
16.6 	alternative publication on the Web site, the political subdivision must publish notice of 
16.7 	the alternative means of publication in a qualified newspaper in the jurisdiction and on 
16.8 	the Web site.

16.9 	Sec. 7. Minnesota Statutes 2010, section 383B.914, subdivision 1, is amended to read:
16.10 		Subdivision 1.Health system human resources system. Persons employed at the 
16.11 	corporation created shall be subject to a human resources system that is designed to offer 
16.12 	appropriate benefits to workers employed in a health care setting. This human resources 
16.13 	system shall replace the general county human resources system prescribed in sections 
16.14 	383B.26 to 383B.42, and any rules related to it. The corporation shall have the authority 
16.15 	to establish all personnel policies and practices, negotiate applicable labor agreements, 
16.16 	and set all levels of compensation and benefits which are considered appropriate by the 
16.17 	board except as limited in this section. The human resources system is subject to the 
16.18 	following human resources requirements:
16.19 	(1) determine compensation according to the pay equity requirements under sections 
16.20 	471.991 to 471.999;
16.21 	(2) (1) provide preferences for veterans according to the Veterans Preference Act 
16.22 	under sections 197.455, 197.46, and 375.63; and
16.23 	(3) (2) provide an appeals process for an individual who is discharged, demoted, 
16.24 	or suspended.

16.25 	Sec. 8. Minnesota Statutes 2010, section 462.355, subdivision 4, is amended to read:
16.26 		Subd. 4.Interim ordinance. (a) If a municipality is conducting studies or has 
16.27 	authorized a study to be conducted or has held or has scheduled a hearing for the purpose 
16.28 	of considering adoption or amendment of a comprehensive plan or official controls 
16.29 	as defined in section 462.352, subdivision 15, or if new territory for which plans or 
16.30 	controls have not been adopted is annexed to a municipality, The governing body of the 
16.31 	municipality may adopt an interim ordinance applicable to all or part of its jurisdiction 
16.32 	for the purpose of protecting the planning process and the health, safety and welfare of its 
16.33 	citizens. The interim ordinance may regulate, restrict, or prohibit any use, development, 
17.1 	or subdivision within the jurisdiction or a portion thereof for a period not to exceed one 
17.2 	year from the date it is effective.
17.3 	(b) If a proposed interim ordinance purports to regulate, restrict, or prohibit activities 
17.4 	relating to livestock production, a public hearing must be held following a ten-day notice 
17.5 	given by publication in a newspaper of general circulation in the municipality before 
17.6 	the interim ordinance takes effect.
17.7 	(c) The period of an interim ordinance applicable to an area that is affected by 
17.8 	a city's master plan for a municipal airport may be extended for such additional periods 
17.9 	as the municipality may deem appropriate, not exceeding a total additional period of 18 
17.10 	months. In all other cases, no interim ordinance may halt, delay, or impede a subdivision 
17.11 	that has been given preliminary approval, nor may any interim ordinance extend the 
17.12 	time deadline for agency action set forth in section 15.99 with respect to any application 
17.13 	filed prior to the effective date of the interim ordinance. The governing body of the 
17.14 	municipality may extend the interim ordinance after a public hearing and written findings 
17.15 	have been adopted based upon one or more of the conditions in clause (1), (2), or (3). 
17.16 	The public hearing must be held at least 15 days but not more than 30 days before the 
17.17 	expiration of the interim ordinance, and notice of the hearing must be published at least 
17.18 	ten days before the hearing. The interim ordinance may be extended for the following 
17.19 	conditions and durations, but, except as provided in clause (3), an interim ordinance may 
17.20 	not be extended more than an additional 18 months:
17.21 	(1) up to an additional 120 days following the receipt of the final approval or review 
17.22 	by a federal, state, or metropolitan agency when the approval is required by law and the 
17.23 	review or approval has not been completed and received by the municipality at least 30 
17.24 	days before the expiration of the interim ordinance;
17.25 	(2) up to an additional 120 days following the completion of any other process 
17.26 	required by a state statute, federal law, or court order, when the process is not completed at 
17.27 	least 30 days before the expiration of the interim ordinance; or
17.28 	(3) up to an additional one year if the municipality has not adopted a comprehensive 
17.29 	plan under this section at the time the interim ordinance is enacted.

17.30 	Sec. 9. Minnesota Statutes 2010, section 465.719, subdivision 9, is amended to read:
17.31 		Subd. 9.Application of other laws. A corporation created by a political subdivision 
17.32 	under this section must comply with every law that applies to the political subdivision, 
17.33 	as if the corporation is a part of the political subdivision, unless the resolution ratifying 
17.34 	creation of the corporation specifically exempts the corporation from part or all of a law. 
17.35 	If the resolution exempts the corporation from part or all of a law, the resolution must 
18.1 	make a detailed and specific finding as to why the corporation cannot fulfill its purpose if 
18.2 	the corporation is subject to that law. A corporation may not be exempted from chapter 
18.3 	13D, the Minnesota Open Meeting Law, sections 138.163 to 138.25, governing records 
18.4 	management, or chapter 13, the Minnesota Government Data Practices Act. Any affected 
18.5 	or interested person may bring an action in district court to void the resolution on the 
18.6 	grounds that the findings are not sufficiently detailed and specific, or that the corporation 
18.7 	can fulfill its purpose if it is subject to the law from which the resolution exempts the 
18.8 	corporation. Laws that apply to a political subdivision that also apply to a corporation 
18.9 	created by a political subdivision under this subdivision include, but are not limited to:
18.10 	(1) chapter 13D, the Minnesota Open Meeting Law;
18.11 	(2) chapter 13, the Minnesota Government Data Practices Act;
18.12 	(3) section 471.345, the Uniform Municipal Contracting Law;
18.13 	(4) sections 43A.17, limiting the compensation of employees based on the governor's 
18.14 	salary; 471.991 to 471.999, providing for equitable pay;, and 465.72 and 465.722, 
18.15 	governing severance pay;
18.16 	(5) if the corporation issues debt, its debt is included in the political subdivision's 
18.17 	debt limit if it would be included if issued by the political subdivision, and issuance of the 
18.18 	debt is subject to the election and other requirements of chapter 475 and section 471.69;
18.19 	(6) section 471.895, prohibiting acceptance of gifts from interested parties, and 
18.20 	sections 471.87 to 471.89, relating to interests in contracts;
18.21 	(7) chapter 466, relating to municipal tort liability;
18.22 	(8) chapter 118A, requiring deposit insurance or bond or pledged collateral for 
18.23 	deposits;
18.24 	(9) chapter 118A, restricting investments;
18.25 	(10) section 471.346, requiring ownership of vehicles to be identified;
18.26 	(11) sections 471.38 to 471.41, requiring claims to be in writing, itemized, and 
18.27 	approved by the governing board before payment can be made; and
18.28 	(12) the corporation cannot make advances of pay, make or guarantee loans to 
18.29 	employees, or provide in-kind benefits unless authorized by law.

18.30 	Sec. 10. Minnesota Statutes 2010, section 471.697, is amended by adding a subdivision 
18.31 	to read:
18.32 		Subd. 3.Federal single audit. A city or town that prepares a single audit that meets 
18.33 	the requirements in United States Code, title 31, section 7501 et seq., may submit the audit 
18.34 	to the state auditor to satisfy the requirements of this section.

19.1 	Sec. 11.  REPEALER.
 19.2 	Minnesota Statutes 2010, sections 43A.04, subdivision 10; 128C.15, subdivision 3; 
19.3 	326B.145; 340A.403, subdivision 4; 382.265; 395.14; 395.15; 395.16; 395.17; 395.18; 
19.4 	395.19; 395.20; 395.21; 395.22; 395.23; 395.24; 471.6161, subdivision 5; 471.661; 
19.5 	471.991; 471.992, subdivisions 1, 2, and 4; 471.993; 471.994; 471.995; 471.9966; 
19.6 	471.997; 471.9981, subdivisions 5a, 5b, 6, and 7; and 471.999, are repealed.

19.7 	ARTICLE 6
19.8 	ANIMAL CONTROL

19.9 	Section 1. Minnesota Statutes 2010, section 347.14, subdivision 1, is amended to read:
19.10 		Subdivision 1.Seizure; impoundment; presumption. Any person may seize, 
19.11 	impound, or restrain any unlicensed dog which the person may find running at large. The 
19.12 	fact that a dog is without a license attached to a collar shall be presumptive evidence that 
19.13 	the dog is unlicensed. The sheriff and sheriff's deputies or other police officer shall may
19.14 	seize, impound or restrain any dog for which no license has been issued and for which one 
19.15 	is required. Any officer who shall seize, restrain, impound, or kill any dog found in any 
19.16 	place without a license, as required under sections 347.09 to 347.20, upon delivery of such 
19.17 	dog or carcass and the proper disposal of the carcass and after making a report to the town 
19.18 	or city treasurer of the town or city in which the dog was seized or killed, showing that the 
19.19 	dog did not have a license, shall receive therefor a payment of $2, the same to be made 
19.20 	from any funds in the town or city treasury not otherwise appropriated.
19.21 	The county auditor shall reimburse the town for any expense incurred under section 
19.22 	347.10 and shall charge such expense to the dog license fund.

19.23 	Sec. 2. Minnesota Statutes 2010, section 347.565, is amended to read:
19.24 	347.565 APPLICABILITY.
19.25 	Sections 347.50 to 347.56must may be enforced by animal control authorities or 
19.26 	law enforcement agencies, whether or not these sections have been adopted into local 
19.27 	ordinance.

19.28 	Sec. 3.  REPEALER.
 19.29 	Minnesota Statutes 2010, sections 346.13; 346.14; 346.15; and 346.155, subdivision 
19.30 	9, are repealed.

20.1 	ARTICLE 7
20.2 	EDUCATION

20.3 	Section 1. Minnesota Statutes 2010, section 122A.414, subdivision 1a, is amended to 
20.4 	read:
20.5 		Subd. 1a.Transitional planning year. (a) To be eligible to participate in an 
20.6 	alternative teacher professional pay system, a school district, intermediate school district, 
20.7 	or site, at least one school year before it expects to fully implement an alternative pay 
20.8 	system, must:
20.9 	(1) submit to the department a letter of intent executed by the school district or 
20.10 	intermediate school district and the exclusive representative of the teachers to complete a 
20.11 	plan preparing for full implementation, consistent with subdivision 2, that may include, 
20.12 	among other activities, training to evaluate teacher performance, a restructured school 
20.13 	day to develop integrated ongoing site-based professional development activities, release 
20.14 	time to develop an alternative pay system agreement, and teacher and staff training on 
20.15 	using multiple data sources; and
20.16 	(2) agree to use up to two percent of basic revenue for staff development purposes, 
20.17 	consistent with sections section122A.60and 122A.61, to develop the alternative teacher 
20.18 	professional pay system agreement under this section.
20.19 	(b) To be eligible to participate in an alternative teacher professional pay system, a 
20.20 	charter school, at least one school year before it expects to fully implement an alternative 
20.21 	pay system, must:
20.22 	(1) submit to the department a letter of intent executed by the charter school and the 
20.23 	charter school board of directors;
20.24 	(2) submit the record of a formal vote by the teachers employed at the charter 
20.25 	school indicating at least 70 percent of all teachers agree to implement the alternative 
20.26 	pay system; and
20.27 	(3) agree to use up to two percent of basic revenue for staff development purposes, 
20.28 	consistent with sections section122A.60and 122A.61, to develop the alternative teacher 
20.29 	professional pay system.
20.30 	(c) The commissioner may waive the planning year if the commissioner determines, 
20.31 	based on the criteria under subdivision 2, that the school district, intermediate school 
20.32 	district, site or charter school is ready to fully implement an alternative pay system.

20.33 	EFFECTIVE DATE. This section is effective July 1, 2011.

20.34 	Sec. 2. Minnesota Statutes 2010, section 122A.414, subdivision 4, is amended to read:
21.1 		Subd. 4.Planning and staff development. A school district that qualifies to 
21.2 	participate in the alternative teacher professional pay system transitional planning year 
21.3 	under subdivision 1a may use up to two percent of its general education basic revenue 
21.4 	that would otherwise be reserved under section 122A.61 for complying with the planning 
21.5 	and staff development activities under this section.

21.6 	EFFECTIVE DATE. This section is effective July 1, 2011.

21.7 	Sec. 3. Minnesota Statutes 2010, section 122A.60, subdivision 1, is amended to read:
21.8 		Subdivision 1.Staff development committee. A school board must use the revenue 
21.9 	authorized in section 122A.61 for in-service education for programs under section 
21.10 	120B.22, subdivision 2, or for staff development plans may implement a staff development 
21.11 	plan under this section. If a school board implements a plan under this section, the board 
21.12 	must establish an advisory staff development committee to develop the plan, assist site 
21.13 	professional development teams in developing a site plan consistent with the goals of the 
21.14 	plan, and evaluate staff development efforts at the site level. A majority of the advisory 
21.15 	committee and the site professional development team must be teachers representing 
21.16 	various grade levels, subject areas, and special education. The advisory committee must 
21.17 	also include nonteaching staff, parents, and administrators.

21.18 	EFFECTIVE DATE. This section is effective July 1, 2011.

21.19 	Sec. 4. Minnesota Statutes 2010, section 122A.60, subdivision 1a, is amended to read:
21.20 		Subd. 1a.Effective staff development activities. (a) Staff development activities
21.21 	implemented under this section must:
21.22 	(1) focus on the school classroom and research-based strategies that improve student 
21.23 	learning;
21.24 	(2) provide opportunities for teachers to practice and improve their instructional 
21.25 	skills over time;
21.26 	(3) provide opportunities for teachers to use student data as part of their daily work 
21.27 	to increase student achievement;
21.28 	(4) enhance teacher content knowledge and instructional skills;
21.29 	(5) align with state and local academic standards;
21.30 	(6) provide opportunities to build professional relationships, foster collaboration 
21.31 	among principals and staff who provide instruction, and provide opportunities for 
21.32 	teacher-to-teacher mentoring; and
22.1 	(7) align with the plan of the district or site for an alternative teacher professional 
22.2 	pay system.
22.3 	Staff development activities may include curriculum development and curriculum training 
22.4 	programs, and activities that provide teachers and other members of site-based teams 
22.5 	training to enhance team performance. The school district also may implement other 
22.6 	staff development activities required by law and activities associated with professional 
22.7 	teacher compensation models.
22.8 	(b) Release time provided for teachers to supervise students on field trips and school 
22.9 	activities, or independent tasks not associated with enhancing the teacher's knowledge 
22.10 	and instructional skills, such as preparing report cards, calculating grades, or organizing 
22.11 	classroom materials, may not be counted as staff development time that is financed with 
22.12 	staff development reserved revenue under section 122A.61.

22.13 	EFFECTIVE DATE. This section is effective July 1, 2011.

22.14 	Sec. 5. Minnesota Statutes 2010, section 122A.60, subdivision 4, is amended to read:
22.15 		Subd. 4.Staff development report. (a) By October 15 of each year, the a district 
22.16 	and implementing a staff development plan under this section, in conjunction with its 
22.17 	site staff development committees, shall write and submit a report of staff development 
22.18 	activities and expenditures for the previous year, in the form and manner determined by 
22.19 	the commissioner. The report, signed by the district superintendent and staff development 
22.20 	chair, must include assessment and evaluation data indicating progress toward district and 
22.21 	site staff development goals based on teaching and learning outcomes, including the 
22.22 	percentage of teachers and other staff involved in instruction who participate in effective 
22.23 	staff development activities under subdivision 3.
22.24 	(b) The report must break down expenditures for:
22.25 	(1) curriculum development and curriculum training programs; and
22.26 	(2) staff development training models, workshops, and conferences, and the cost of 
22.27 	releasing teachers or providing substitute teachers for staff development purposes.
22.28 	The report also must indicate whether the expenditures were incurred at the district 
22.29 	level or the school site level, and whether the school site expenditures were made possible 
22.30 	by grants to school sites that demonstrate exemplary use of allocated staff development 
22.31 	revenue. These expenditures must be reported using the uniform financial and accounting 
22.32 	and reporting standards.
23.1 	(c) The commissioner shall report the staff development progress and expenditure 
23.2 	data to the house of representatives and senate committees having jurisdiction over 
23.3 	education by February 15 each year.

23.4 	EFFECTIVE DATE. This section is effective July 1, 2011.

23.5 	Sec. 6. Minnesota Statutes 2010, section 123B.02, subdivision 15, is amended to read:
23.6 		Subd. 15.Annuity contract; payroll allocation. (a) At the request of an employee 
23.7 	and as part of the employee's compensation arrangement, the board may purchase an 
23.8 	individual annuity contract for an employee for retirement or other purposes and may 
23.9 	make payroll allocations in accordance with such arrangement for the purpose of paying 
23.10 	the entire premium due and to become due under such contract. The allocation must be 
23.11 	made in a manner which will qualify the annuity premiums, or a portion thereof, for the 
23.12 	benefit afforded under section 403(b) of the current Federal Internal Revenue Code or any 
23.13 	equivalent provision of subsequent federal income tax law. The employee shall own such 
23.14 	contract and the employee's rights under the contract shall be nonforfeitable except for 
23.15 	failure to pay premiums. Section 122A.40 shall not be applicable hereto and the board shall 
23.16 	have no liability thereunder because of its purchase of any individual annuity contracts. 
23.17 	This statute shall be applied in a nondiscriminatory manner to employees of the school 
23.18 	district. The identity and number of the available vendors under federal Internal Revenue 
23.19 	Code section 403(b) is not a term and condition of employment under section 179A.03.
23.20 	(b) When considering vendors under paragraph (a), the school district and the 
23.21 	exclusive representative of the employees shall consider all of the following:
23.22 	(1) the vendor's ability to comply with all employer requirements imposed by 
23.23 	section 403(b) of the Internal Revenue Code of 1986 and its subsequent amendments, 
23.24 	other provisions of the Internal Revenue Code of 1986 that apply to section 403(b) of the 
23.25 	Internal Revenue Code, and any regulation adopted in relation to these laws;
23.26 	(2) the vendor's experience in providing 403(b) plans;
23.27 	(3) the vendor's potential effectiveness in providing client services attendant to 
23.28 	its plan and in relation to cost;
23.29 	(4) the nature and extent of rights and benefits offered under the vendor's plan;
23.30 	(5) the suitability of the rights and benefits offered under the vendor's plan;
23.31 	(6) the vendor's ability to provide the rights and benefits offered under its plan; and
23.32 	(7) the vendor's financial stability.

23.33 	EFFECTIVE DATE. This section is effective July 1, 2011, and applies to contracts 
23.34 	entered into on or after that date.

24.1 	Sec. 7. Minnesota Statutes 2010, section 126C.13, subdivision 5, is amended to read:
24.2 		Subd. 5.Uses of revenue. Except as provided in sections 126C.10, subdivision 14; 
24.3 	126C.12;, and 126C.15, general education revenue may be used during the regular school 
24.4 	year and the summer for general and special school purposes. 

24.5 	EFFECTIVE DATE. This section is effective July 1, 2011.

24.6 	Sec. 8. Minnesota Statutes 2010, section 126C.44, is amended to read:
24.7 	126C.44 SAFE SCHOOLS LEVY.
24.8 	(a) Each district may make a levy on all taxable property located within the district 
24.9 	for the purposes specified in this section. The maximum amount which may be levied 
24.10 	for all costs under this section shall be equal to $30 multiplied by the district's adjusted 
24.11 	marginal cost pupil units for the school year. The proceeds of the levy must be reserved and 
24.12 	used for directly funding the following purposes or for reimbursing the cities and counties 
24.13 	who contract with the district for the following purposes: (1) to pay the costs incurred for 
24.14 	the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
24.15 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
24.16 	as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools; 
24.17 	(3) to pay the costs for a gang resistance education training curriculum in the district's 
24.18 	schools; (4) to pay the costs for security in the district's schools and on school property; (5) 
24.19 	to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary 
24.20 	opt-in suicide prevention tools, and violence prevention measures taken by the school 
24.21 	district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed 
24.22 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
24.23 	dependency counselors to help provide early responses to problems. For expenditures 
24.24 	under clause (1), the district must initially attempt to contract for services to be provided 
24.25 	by peace officers or sheriffs with the police department of each city or the sheriff's 
24.26 	department of the county within the district containing the school receiving the services. If 
24.27 	a local police department or a county sheriff's department does not wish to provide the 
24.28 	necessary services, the district may contract for these services with any other police or 
24.29 	sheriff's department located entirely or partially within the school district's boundaries.
24.30 	(b) A school district that is a member of an intermediate school district may 
24.31 	include in its authority under this section the costs associated with safe schools activities 
24.32 	authorized under paragraph (a) for intermediate school district programs. This authority 
24.33 	must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 
25.1 	This authority is in addition to any other authority authorized under this section. Revenue 
25.2 	raised under this paragraph must be transferred to the intermediate school district.
25.3 	(c) A school district must set aside at least $3 per adjusted marginal cost pupil 
25.4 	unit of the safe schools levy proceeds for the purposes authorized under paragraph (a), 
25.5 	clause (6). The district must annually certify either that: (1) its total spending on services 
25.6 	provided by the employees listed in paragraph (a), clause (6), is not less than the sum of 
25.7 	its expenditures for these purposes, excluding amounts spent under this section, in the 
25.8 	previous year plus the amount spent under this section; or (2) that the district's full-time 
25.9 	equivalent number of employees listed in paragraph (a), clause (6), is not less than the 
25.10 	number for the previous year.

25.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.12 	Sec. 9. Minnesota Statutes 2010, section 134.195, subdivision 8, is amended to read:
25.13 		Subd. 8.Funding. The ordinance or resolution establishing the library shall 
25.14 	provide for joint financing of the library by the school district and the city. The city shall 
25.15 	provide at least the minimum dollar amount established in section 134.34, subdivision 
25.16 	1. The school district shall provide money for staff and materials for the library at least 
25.17 	in proportion to the use related to curriculum, as determined by the circulation statistics 
25.18 	of the library. Neither the city nor the school district shall reduce the financial support 
25.19 	provided for operation of library or media services below the level of support provided in 
25.20 	the preceding year. 

25.21 	EFFECTIVE DATE. This section is effective July 1, 2011.

25.22 	Sec. 10. Minnesota Statutes 2010, section 134.201, subdivision 1, is amended to read:
25.23 		Subdivision 1.Establishment. Regional public library districts may be established 
25.24 	under this section in the areas of the existing Great River Regional Library System and 
25.25 	the East Central Regional Library System. The geographic boundaries shall be those 
25.26 	established by the commissioner of education under Minnesota Statutes 2010, section 
25.27 	134.34, subdivision 3. 

25.28 	EFFECTIVE DATE. This section is effective July 1, 2011.

25.29 	Sec. 11. Minnesota Statutes 2010, section 134.201, subdivision 5, is amended to read:
25.30 		Subd. 5.General levy authority. The board may levy for operation of public 
25.31 	library service. This levy shall replace levies for operation of public library service by 
26.1 	cities and counties authorized in section 134.07. The amount levied shall be spread on the 
26.2 	net tax capacity of all taxable property in the district at a uniform tax rate. 
26.3 	(a) The maximum amount that may be levied by a board under this section is the 
26.4 	greater of:
26.5 	(1) the statewide average local support per capita for public library services for the 
26.6 	most recent reporting period available, as certified by the commissioner of education, 
26.7 	multiplied by the population of the district according to the most recent estimate of the 
26.8 	state demographer or the Metropolitan Council; or
26.9 	(2) the total amount for public library services provided by participating counties 
26.10 	and cities under section 134.34, subdivision 4, during the year preceding the first year of 
26.11 	operation. 
26.12 	(b) For its first year of operation, the board shall levy an amount not less than the 
26.13 	total dollar amount for library services provided by participating cities and counties during 
26.14 	the preceding year under section 134.34, subdivision 4. 

26.15 	EFFECTIVE DATE. This section is effective July 1, 2011.

26.16 	Sec. 12. Minnesota Statutes 2010, section 134.32, subdivision 3, is amended to read:
26.17 		Subd. 3.Regional library basic system support grants. It shall provide regional 
26.18 	library basic system support grants to regional public library systems which meet the 
26.19 	requirements of section 134.34, to assist those systems in providing basic system services.

26.20 	EFFECTIVE DATE. This section is effective July 1, 2011.

26.21 	Sec. 13. Minnesota Statutes 2010, section 134.341, is amended to read:
26.22 	134.341 COUNTY FINANCIAL SUPPORT.
26.23 	To ensure the availability of public library service to all people, every county shall 
26.24 	provide financial support for public library services at no less than minimum amounts as 
26.25 	specified in section 134.34 and shall participate in the regional public library system to 
26.26 	which it is assigned by the commissioner of education under section 134.34, subdivision 3. 
26.27 	Each county board of commissioners shall appoint at least one county resident to serve as a 
26.28 	representative on the regional public library system board and may appoint more than one 
26.29 	representative under terms and conditions of the regional public library system contract. 

26.30 	EFFECTIVE DATE. This section is effective July 1, 2011.

26.31 	Sec. 14. Minnesota Statutes 2010, section 134.355, subdivision 2, is amended to read:
27.1 		Subd. 2.Grant application. Any regional public library system which qualifies 
27.2 	according to the provisions of section 134.34 may apply for an annual grant for regional 
27.3 	library basic system support. Regional public library districts under section 134.201 may 
27.4 	not compensate board members using grant funds. The amount of each grant for each 
27.5 	fiscal year shall be calculated as provided in this section. 

27.6 	EFFECTIVE DATE. This section is effective July 1, 2011.

27.7 	Sec. 15. Minnesota Statutes 2010, section 134.355, subdivision 8, is amended to read:
27.8 		Subd. 8.Eligibility. A regional public library system may apply for regional library 
27.9 	telecommunications aid. The aid must be used for data and video access maintenance, 
27.10 	equipment, or installation of telecommunication lines. To be eligible, a regional public 
27.11 	library system must be officially designated by the commissioner of education as a 
27.12 	regional public library system as defined in section 134.34, subdivision 3, and each of 
27.13 	its participating cities and counties must meet local support levels defined in section 
27.14 	134.34, subdivision 1. A public library building that receives aid under this section must 
27.15 	be open a minimum of 20 hours per week. 

27.16 	EFFECTIVE DATE. This section is effective July 1, 2011.

27.17 	Sec. 16. Minnesota Statutes 2010, section 171.02, subdivision 2b, is amended to read:
27.18 		Subd. 2b.Exception for type III vehicle drivers. (a) Notwithstanding subdivision 
27.19 	2, the holder of a class A, B, C, or D driver's license, without a school bus endorsement, 
27.20 	may operate a type III vehicle described in section 169.011, subdivision 71, paragraph (h), 
27.21 	under the conditions in paragraphs (b) through (o).
27.22 	(b) The operator is an employee of the entity that owns, leases, or contracts for 
27.23 	the school bus.
27.24 	(c) The operator's employer has adopted and implemented a policy that provides for 
27.25 	annual training and certification of the operator in:
27.26 	(1) safe operation of a type III vehicle;
27.27 	(2) understanding student behavior, including issues relating to students with 
27.28 	disabilities;
27.29 	(3) encouraging orderly conduct of students on the bus and handling incidents of 
27.30 	misconduct appropriately;
27.31 	(4) knowing and understanding relevant laws, rules of the road, and local school 
27.32 	bus safety policies;
27.33 	(5) handling emergency situations;
28.1 	(6) proper use of seat belts and child safety restraints;
28.2 	(7) performance of pretrip vehicle inspections;
28.3 	(8) safe loading and unloading of students, including, but not limited to:
28.4 	(i) utilizing a safe location for loading and unloading students at the curb, on the 
28.5 	nontraffic side of the roadway, or at off-street loading areas, driveways, yards, and other 
28.6 	areas to enable the student to avoid hazardous conditions;
28.7 	(ii) refraining from loading and unloading students in a vehicular traffic lane, on the 
28.8 	shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;
28.9 	(iii) avoiding a loading or unloading location that would require a pupil to cross a 
28.10 	road, or ensuring that the driver or an aide personally escort the pupil across the road if it 
28.11 	is not reasonably feasible to avoid such a location;
28.12 	(iv) placing the type III vehicle in "park" during loading and unloading; and
28.13 	(v) escorting a pupil across the road under item (iii) only after the motor is stopped, 
28.14 	the ignition key is removed, the brakes are set, and the vehicle is otherwise rendered 
28.15 	immobile; and
28.16 	(9) compliance with paragraph (k), concerning reporting certain convictions to the 
28.17 	employer within ten days of the date of conviction.
28.18 	(d) A background check or background investigation of the operator has been 
28.19 	conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03 
28.20 	for school district employees; section 144.057 or chapter 245C for day care employees; or 
28.21 	section 171.321, subdivision 3, for all other persons operating a type III vehicle under 
28.22 	this subdivision.
28.23 	(e) Operators shall submit to a physical examination as required by section 171.321, 
28.24 	subdivision 2.
28.25 	(f) The operator's employer requires preemployment drug testing of applicants for 
28.26 	operator positions. Current operators must comply with the employer's policy under 
28.27 	section 181.951, subdivisions 2, 4, and 5. Notwithstanding any law to the contrary, the 
28.28 	operator's employer may use a Breathalyzer or similar device to fulfill random alcohol 
28.29 	testing requirements.
28.30 	(g) The operator's driver's license is verified annually by the entity that owns, leases, 
28.31 	or contracts for the type III vehicle as required under section 171.321, subdivision 5.
28.32 	(h) A person who sustains a conviction, as defined under section 609.02, of violating 
28.33 	section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked 
28.34 	under sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of 
28.35 	violating or whose driver's license is revoked under a similar statute or ordinance of 
29.1 	another state, is precluded from operating a type III vehicle for five years from the date 
29.2 	of conviction.
29.3 	(i) A person who has ever been convicted of a disqualifying offense as defined in 
29.4 	section 171.3215, subdivision 1, paragraph (c), may not operate a type III vehicle under 
29.5 	this subdivision.
29.6 	(j) A person who sustains a conviction, as defined under section 609.02, of a moving 
29.7 	offense in violation of chapter 169 within three years of the first of three other moving 
29.8 	offenses is precluded from operating a type III vehicle for one year from the date of 
29.9 	the last conviction.
29.10 	(k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) 
29.11 	while employed by the entity that owns, leases, or contracts for the school bus, shall report 
29.12 	the conviction to the employer within ten days of the date of the conviction.
29.13 	(l) Students riding the type III vehicle must have training required under section 
29.14 	123B.90, subdivision 2.
29.15 	(m) Documentation of meeting the requirements listed in this subdivision must be 
29.16 	maintained under separate file at the business location for each type III vehicle operator. 
29.17 	The business manager, school board, governing body of a nonpublic school, or any 
29.18 	other entity that owns, leases, or contracts for the type III vehicle operating under this 
29.19 	subdivision is responsible for maintaining these files for inspection.
29.20 	(n) The type III vehicle must bear a current certificate of inspection issued under 
29.21 	section 169.451.
29.22 	(o) An employee of a school or of a school district, who is not employed for the sole 
29.23 	purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f).

29.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

29.25 	Sec. 17. Minnesota Statutes 2010, section 171.321, subdivision 4, is amended to read:
29.26 		Subd. 4.Training. (a) No person shall drive a class A, B, C, or D school bus when 
29.27 	transporting school children to or from school or upon a school-related trip or activity 
29.28 	without having demonstrated sufficient skills and knowledge to transport students in 
29.29 	a safe and legal manner.
29.30 	(b) A bus driver must have training or experience that allows the driver to meet at 
29.31 	least the following competencies:
29.32 	(1) safely operate the type of school bus the driver will be driving;
29.33 	(2) understand student behavior, including issues relating to students with 
29.34 	disabilities;
30.1 	(3) encourage orderly conduct of students on the bus and handle incidents of 
30.2 	misconduct appropriately;
30.3 	(4) know and understand relevant laws, rules of the road, and local school bus 
30.4 	safety policies;
30.5 	(5) handle emergency situations; and
30.6 	(6) safely load and unload students.
30.7 	(c) The commissioner of public safety shall develop a comprehensive model 
30.8 	school bus driver training program and model assessments for school bus driver training 
30.9 	competencies, which are not subject to chapter 14. A school district, nonpublic school, or 
30.10 	private contractor may use alternative assessments for bus driver training competencies 
30.11 	with the approval of the commissioner of public safety. A driver may receive at least eight 
30.12 	hours of school bus in-service training any year, as an alternative to being assessed for bus 
30.13 	driver competencies after the initial year of being assessed for bus driver competencies. 
30.14 	The employer shall keep the assessment or a record of the in-service training for the 
30.15 	current period available for inspection by representatives of the commissioner.
30.16 	(d) A school district, nonpublic school, or private contractor shall provide in-service 
30.17 	training annually to each school bus driver. This paragraph does not apply to a driver who 
30.18 	exclusively transports students under section 171.02, subdivision 2b.

30.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.20 	Sec. 18.  REPEALER.
 30.21 	(a) Minnesota Statutes 2010, sections 122A.61; 123B.05; 126C.12; and 134.34, 
30.22 	subdivisions 1, 3, 4, and 7, are repealed.
30.23 	(b) Minnesota Rules, part 3525.2340, is repealed.

30.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.25 	ARTICLE 8
30.26 	TAXES

30.27 	Section 1. [275.761] MAINTENANCE OF EFFORT AND MATCHING 
30.28 	REQUIREMENTS SUSPENDED.
30.29 	(a) Notwithstanding any law to the contrary and except as provided in paragraphs (b) 
30.30 	and (c), all maintenance of effort and matching fund requirements for counties, including 
30.31 	but not limited to those under sections 116L.872, 119B.11, 134.34, 145.882, 145A.131, 
30.32 	245.4835, 245.714, 254B.03, 256B.0625, 256F.10, and 256F.13, are suspended for the 
30.33 	taxes payable years that levy limits are in effect.
31.1 	(b) This section does not permit a county to suspend or otherwise reduce a 
31.2 	maintenance of effort or matching fund requirement to the extent that the suspension 
31.3 	or reduction would:
31.4 	(1) require the state to expend additional money or incur additional costs; or
31.5 	(2) cause a reduction in the receipt by the state or the county of federal funds.
31.6 	(c) The commissioner of finance may determine the maintenance of effort and 
31.7 	matching funding requirements that are not permitted, in whole or in part, to be suspended 
31.8 	or reduced under paragraph (b). The commissioner shall publish these determinations 
31.9 	on the department's Web site and no county may suspend or reduce a maintenance of 
31.10 	effort or matching fund requirement that the commissioner determines is not subject to 
31.11 	suspension or reduction.

31.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

31.13 	Sec. 2. Minnesota Statutes 2010, section 297A.70, subdivision 2, is amended to read:
31.14 		Subd. 2.Sales to government. (a) All sales, except those listed in paragraph (b), 
31.15 	to the following governments and political subdivisions, or to the listed agencies or 
31.16 	instrumentalities of governments and political subdivisions, are exempt:
31.17 	(1) the United States and its agencies and instrumentalities;
31.18 	(2) school districts, the University of Minnesota, state universities, community 
31.19 	colleges, technical colleges, state academies, and the Perpich Minnesota Center for 
31.20 	Arts Education, and an instrumentality of a political subdivision that is accredited as an 
31.21 	optional/special function school by the North Central Association of Colleges and Schools;
31.22 	(3) hospitals and nursing homes owned and operated by political subdivisions of 
31.23 	the state of tangible personal property and taxable services used at or by hospitals and 
31.24 	nursing homes;
31.25 	(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip 
31.26 	operations provided for in section 473.4051;
31.27 	(5) (4) other states or political subdivisions of other states, if the sale would be 
31.28 	exempt from taxation if it occurred in that state; and
31.29 	(6) (5) sales to public libraries, public library systems, multicounty, multitype library 
31.30 	systems as defined in section 134.001, county law libraries under chapter 134A, state 
31.31 	agency libraries, the state library under section 480.09, and the Legislative Reference 
31.32 	Library; and
31.33 	(6) goods and services purchased by a political subdivision of the state of Minnesota, 
31.34 	except for items purchased for the provision of goods or services that are:
31.35 	(i) generally provided by a private business; and
32.1 	(ii) taxable purchases if made by a private business engaged in the same activity.
32.2 	(b) This exemption does not apply to the sales of the following products and services:
32.3 	(1) building, construction, or reconstruction materials purchased by a contractor 
32.4 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
32.5 	guaranteed maximum price covering both labor and materials for use in the construction, 
32.6 	alteration, or repair of a building or facility;
32.7 	(2) construction materials purchased by tax exempt entities or their contractors to 
32.8 	be used in constructing buildings or facilities which will not be used principally by the 
32.9 	tax exempt entities;
32.10 	(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, 
32.11 	except for leases entered into by the United States or its agencies or instrumentalities, 
32.12 	or by a political subdivision; or
32.13 	(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), 
32.14 	clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in 
32.15 	section 297A.67, subdivision 2, except for lodging, prepared food, candy, soft drinks, 
32.16 	and alcoholic beverages purchased directly by the United States or its agencies or 
32.17 	instrumentalities.
32.18 	(c) As used in this subdivision, "school districts" means public school entities and 
32.19 	districts of every kind and nature organized under the laws of the state of Minnesota, and 
32.20 	any instrumentality of a school district, as defined in section 471.59 "goods or services 
32.21 	that are generally provided by a private business" include, but are not limited to, goods 
32.22 	and services generally provided by liquor stores, gas and electric utilities, golf courses, 
32.23 	marinas, health and fitness centers, campgrounds, cafes, and laundromats. "Goods and 
32.24 	services that are generally provided by a private business" do not include housing, sewer 
32.25 	and water services, wastewater treatment, ambulances and other public safety services, 
32.26 	chore or homemaking services provided to elderly or disabled individuals, or road and 
32.27 	street maintenance or lighting.

32.28 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
32.29 	June 30, 2011.

32.30 	Sec. 3. Minnesota Statutes 2010, section 297A.70, subdivision 3, is amended to read:
32.31 		Subd. 3.Sales of certain goods and services to government. (a) The following 
32.32 	sales to or use by the specified persons, governments, and political subdivisions of the 
32.33 	state are exempt:
32.34 	(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and 
32.35 	fire apparatus to a political subdivision;
33.1 	(2) machinery and equipment, except for motor vehicles, used directly for mixed 
33.2 	municipal solid waste management services at a solid waste disposal facility as defined in 
33.3 	section 115A.03, subdivision 10;
33.4 	(3) chore and homemaking services to a political subdivision of the state to be 
33.5 	provided to elderly or disabled individuals;
33.6 	(4) telephone services to the Office of Enterprise Technology that are used to provide 
33.7 	telecommunications services through the enterprise technology revolving fund;
33.8 	(5) (2) firefighter personal protective equipment as defined in paragraph (b), if 
33.9 	purchased or authorized by and for the use of an organized fire department, fire protection 
33.10 	district, or fire company regularly charged with the responsibility of providing fire 
33.11 	protection to the state or a political subdivision;
33.12 	(6) (3) bullet-resistant body armor that provides the wearer with ballistic and trauma 
33.13 	protection, if purchased by a law enforcement agency of the state or a political subdivision 
33.14 	of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1;
33.15 	(7) (4) motor vehicles purchased or leased by political subdivisions of the state if the 
33.16 	vehicles are exempt from registration under section 168.012, subdivision 1, paragraph (b), 
33.17 	exempt from taxation under section 473.448, or exempt from the motor vehicle sales tax 
33.18 	under section 297B.03, clause (12);
33.19 	(8) equipment designed to process, dewater, and recycle biosolids for wastewater 
33.20 	treatment facilities of political subdivisions, and materials incidental to installation of 
33.21 	that equipment;
33.22 	(9) sales to a town of gravel and of machinery, equipment, and accessories, except 
33.23 	motor vehicles, used exclusively for road and bridge maintenance, and (5) leases by a 
33.24 	town of motor vehicles exempt from tax under section 297B.03, clause (10);
33.25 	(10) (6) the removal of trees, bushes, or shrubs for the construction and maintenance 
33.26 	of roads, trails, or firebreaks when purchased by an agency of the state or a political 
33.27 	subdivision of the state; and
33.28 	(11) (7) purchases by the Metropolitan Council or the Department of Transportation 
33.29 	of vehicles and repair parts to equip operations provided for in section 174.90, including, 
33.30 	but not limited to, the Northstar Corridor Rail project.
33.31 	(b) For purposes of this subdivision, "firefighters personal protective equipment" 
33.32 	means helmets, including face shields, chin straps, and neck liners; bunker coats and 
33.33 	pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets; 
33.34 	protective coveralls; goggles; self-contained breathing apparatus; canister filter masks; 
33.35 	personal alert safety systems; spanner belts; optical or thermal imaging search devices; 
33.36 	and all safety equipment required by the Occupational Safety and Health Administration.
34.1 	(c) For purchases of items listed in paragraph (a), clause (11), the tax must be 
34.2 	imposed and collected as if the rate under section 297A.62, subdivision 1, applied and 
34.3 	then refunded in the manner provided in section 297A.75.

34.4 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
34.5 	June 30, 2011.

34.6 	ARTICLE 9
34.7 	EMPLOYMENT

34.8 	Section 1. Minnesota Statutes 2010, section 177.42, subdivision 4, is amended to read:
34.9 		Subd. 4.Prevailing hours of labor. "Prevailing hours of labor" means the hours 
34.10 	of labor per day and per week worked within the area by a larger number of workers of 
34.11 	the same class than are employed within the area for any other number of hours per day 
34.12 	and per week. The prevailing hours of labor may not be more than eight hours per day 
34.13 	or more than 40 hours per week.

34.14 	Sec. 2. Minnesota Statutes 2010, section 177.42, subdivision 6, is amended to read:
34.15 		Subd. 6.Prevailing wage rate. "Prevailing wage rate" means the hourly basic 
34.16 	rate of pay plus the contribution paid to or for the largest number of median hourly 
34.17 	compensation paid to workers engaged in the same class of labor within the area. The 
34.18 	median hourly compensation includes the hourly basic rate plus the contribution for 
34.19 	medical or hospital care, pensions on retirement or death, compensation for injuries or 
34.20 	illness resulting from occupational activity, or insurance to provide any of the foregoing, 
34.21 	for unemployment benefits, life insurance, disability and sickness insurance, or accident 
34.22 	insurance, for vacation and holiday pay, for defraying the costs of apprenticeship or other 
34.23 	similar programs, or for other bona fide fringe benefits, but only where the contractor or 
34.24 	subcontractor is not required by other federal, state, or local law to provide any of those 
34.25 	benefits, the amount of:
34.26 	(1) the rate of contribution irrevocably made by a contractor or subcontractor to a 
34.27 	trustee or to a third person under a fund, plan, or program; and
34.28 	(2) the rate of costs to the contractor or subcontractor that may be reasonably 
34.29 	anticipated in providing benefits to laborers and mechanics pursuant to an enforceable 
34.30 	commitment to carry out a financially responsible plan or program which was 
34.31 	communicated in writing to the laborers and mechanics affected.
34.32 	"Prevailing wage rate" includes, for the purposes of section 177.44, rental rates for 
34.33 	truck hire paid to those who own and operate the truck.
35.1 	The prevailing wage rate may not be less than a reasonable and living wage.