1.1 	A bill for an act
1.2 	relating to legislature; regulating the Legislative Audit Commission;amending 
1.3 	Minnesota Statutes 2004, sections 3.97, subdivisions 2, 3a; 3.9741, subdivision 
1.4 	1; 37.06; repealing Minnesota Statutes 2004, sections 3.97, subdivision 3; 3.979, 
1.5 	subdivision 5.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 3.97, subdivision 2, is amended to read:
1.8 		Subd. 2.Membership; terms; meetings; compensation; powers. The Legislative 
1.9 	Audit Commission consists of:
1.10 	(1) ~~the majority leader~~three members of the senate ~~and the president of the senate or~~ 
1.11 	~~their designees~~ appointed by the senate committee on committees;
1.12 	(2) ~~the chair~~three members of the senate ~~Committee on Governmental Operations~~ 
1.13 	~~and reform or a designee who is a member of the committee~~ appointed by the senate 
1.14 	minority leader;
1.15 	(3) ~~a chair of a senate Committee on Finance designated by the majority leader~~ three 
1.16 	members of the house appointed by the speaker of the house; and
1.17 	(4) ~~four~~three members of the ~~senate~~house appointed by the ~~senate~~house minority 
1.18 	leader~~;~~.
1.19 	~~(5) the speaker of the house and the chair of the house Committee on Rules or~~ 
1.20 	~~their designees;~~
1.21 	~~(6) the chair of the house Committee on Governmental Operations and Gaming or a~~ 
1.22 	~~designee who is a member of the committee;~~
1.23 	~~(7) the chair of the house Ways and Means Committee or a designee who is a~~ 
1.24 	~~member of the committee; and~~
1.25 	~~(8) four members of the house appointed by the house minority leader.~~
2.1 	~~The appointed members of the commission shall serve for a term commencing upon~~ 
2.2 	~~appointment and expiring at the opening of the next regular session of the legislature in~~ 
2.3 	~~the odd-numbered year and until a successor is appointed. A vacancy in the membership~~ 
2.4 	~~of the commission shall be filled for the unexpired term in a manner that will preserve~~ 
2.5 	~~the representation established by this subdivision.~~ Members shall serve until replaced, 
2.6 	or until they are not members of the legislative body from which they were appointed. 
2.7 	Appointing authorities shall fill vacancies on the commission within 30 days of a vacancy 
2.8 	being created.
2.9 	The commission shall meet in January of each odd-numbered year to elect its chair 
2.10 	and ~~other officers as it may determine necessary~~ vice-chair. ~~A chair~~They shall serve 
2.11 	~~a two-year term, expiring on January 1 in the odd-numbered year following election,~~ 
2.12 	~~and~~ until ~~a successor is~~successors are elected. The chair and vice-chair shall alternate 
2.13 	biennially between the senate and the house. The commission shall meet at the call of the 
2.14 	chair ~~or the executive secretary~~. The members shall serve without compensation but be 
2.15 	reimbursed for their reasonable expenses as members of the legislature. The commission 
2.16 	may exercise the powers prescribed by section  3.153. 

2.17 	Sec. 2. Minnesota Statutes 2004, section 3.97, subdivision 3a, is amended to read:
2.18 		Subd. 3a.Evaluation topics. ~~(a)~~ The commission shall periodically select topics for 
2.19 	the legislative auditor to evaluate. Topics may include any agency, program, or activity 
2.20 	established by law to achieve a state purpose, or any topic that affects the operation of 
2.21 	state government, but the commission shall give primary consideration to topics that 
2.22 	are likely, upon examination, to produce recommendations for cost savings, increased 
2.23 	productivity, or the elimination of duplication among public agencies. Legislators and 
2.24 	legislative committees may suggest topics for evaluation, but the legislative auditor shall 
2.25 	only conduct evaluations approved by the commission.
2.26 	~~(b) The commission is requested to direct the auditor, in response to a suggestion~~ 
2.27 	~~from an individual legislator of an evaluation topic, to estimate the scope of the proposed~~ 
2.28 	~~evaluation and the time required to complete it. The estimate must be reported to the~~ 
2.29 	~~legislator who submitted the suggestion and to the commission. The commission must~~ 
2.30 	~~determine within 60 days of receiving the estimate whether to proceed with the suggested~~ 
2.31 	~~evaluation and must convey its decision to the legislator along with the reasons for its~~ 
2.32 	~~decision.~~

2.33 	Sec. 3. Minnesota Statutes 2004, section 3.9741, subdivision 1, is amended to read:
3.1 		Subdivision 1.Metropolitan Commission. Upon the audit of the financial accounts 
3.2 	and affairs of a commission under section  473.595,  473.604, or  473.703, the affected 
3.3 	Metropolitan Commission is liable to the state for the total cost and expenses of the 
3.4 	audit, including the salaries paid to the examiners while actually engaged in making 
3.5 	the examination. The legislative auditor may bill the Metropolitan Commission either 
3.6 	monthly or at the completion of the audit. All collections received for the audits must ~~be~~ 
3.7 	~~deposited in the general fund~~ be added to the appropriation for the legislative auditor. 

3.8 	Sec. 4. Minnesota Statutes 2004, section 37.06, is amended to read:
3.9 	37.06 SECRETARY; LEGISLATIVE AUDITOR; DUTIES; REPORT.
3.10 	The secretary shall keep a complete record of the proceedings of the annual meetings 
3.11 	of the State Agricultural Society and all meetings of the board of managers and any 
3.12 	committee of the board, keep all accounts of the society other than those kept by the 
3.13 	treasurer of the society, and perform other duties as directed by the board of managers. On 
3.14 	or before December 31 each year, the secretary shall report to the governor for the fiscal 
3.15 	year ending October 31 all the proceedings of the society during the current year and its 
3.16 	financial condition as appears from its books. This report must contain a full, detailed 
3.17 	statement of all receipts and expenditures during the year.
3.18 	The books and accounts of the society for the fiscal year must be examined and 
3.19 	audited annually by the legislative auditor. The cost of the examination must be paid by 
3.20 	the society to the state and ~~credited~~must be added to the ~~general fund~~ appropriation 
3.21 	for the legislative auditor.
3.22 	A summary of this examination, certified by the legislative auditor, must be 
3.23 	appended to the secretary's report, along with the legislative auditor's recommendations 
3.24 	and the proceedings of the first annual meeting of the society held following the secretary's 
3.25 	report, including addresses made at the meeting as directed by the board of managers. The 
3.26 	summary, recommendations, and proceedings must be printed in the same manner as the 
3.27 	reports of state officers. Copies of the report must be printed annually and distributed as 
3.28 	follows: to each society or association entitled to membership in the society, to each 
3.29 	newspaper in the state, and the remaining copies as directed by the board of managers.

3.30 	Sec. 5.  REPEALER.
 3.31 	Minnesota Statutes 2004, sections 3.97, subdivision 3; and 3.979, subdivision 5, are 
3.32 	repealed.