1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             the general legislative and administrative expenses of 
  1.4             state government; modifying provisions relating to 
  1.5             state and local government operations; modifying 
  1.6             election, retirement, and pension provisions; amending 
  1.7             Minnesota Statutes 2000, sections 3.3005, subdivisions 
  1.8             2, 3, 3a, 4, 5, by adding subdivisions; 3.85, 
  1.9             subdivision 3; 3.855, subdivision 3; 3.97, subdivision 
  1.10            3a; 3.979, by adding a subdivision; 3.98, subdivision 
  1.11            2; 3A.03, subdivision 2; 7.09, subdivision 1; 10A.31, 
  1.12            subdivision 3a, 7; 11A.18, subdivision 7; 13D.01, 
  1.13            subdivision 1; 15.0575, subdivision 3, as amended; 
  1.14            15.059, subdivision 3, as amended; 15A.0815, 
  1.15            subdivision 1, by adding a subdivision; 16A.06, by 
  1.16            adding a subdivision; 16A.10, by adding a subdivision; 
  1.17            16A.152, subdivision 7; 16B.25, subdivision 2; 16B.60, 
  1.18            subdivision 3, by adding subdivisions; 16B.61, 
  1.19            subdivision 1, as amended; 16B.65; 16B.70, by adding a 
  1.20            subdivision; 16B.88, subdivision 1; 16C.02, by adding 
  1.21            a subdivision; 16C.03, subdivision 2, by adding a 
  1.22            subdivision; 16C.04, by adding a subdivision; 16C.05, 
  1.23            subdivision 2; 16C.06, subdivisions 2, 3; 16C.081; 
  1.24            16C.22; 16E.04, subdivision 2, as amended; 43A.04, by 
  1.25            adding subdivisions; 43A.047; 69.011, subdivision 1; 
  1.26            79.34, subdivision 1; 103C.311, subdivision 1; 
  1.27            136F.07; 136F.40, subdivision 2; 179A.15; 190.06, 
  1.28            subdivision 1; 190.07; 192.501, subdivision 2; 
  1.29            193.144, subdivision 6; 193.145, subdivision 4; 
  1.30            193.148; 197.75, subdivisions 1, 2; 200.02, 
  1.31            subdivisions 7, 23; 201.016, subdivision 1a; 201.022; 
  1.32            202A.19, subdivision 1; 203B.04, subdivisions 1, 5; 
  1.33            203B.06, by adding a subdivision; 203B.07, subdivision 
  1.34            1; 203B.16, subdivision 1; 203B.17, subdivision 1; 
  1.35            204B.06, subdivision 1; 204B.07, subdivision 2; 
  1.36            204B.09, subdivisions 1, 3; 204B.20; 204B.22, 
  1.37            subdivisions 1, 3; 204B.23; 204B.27, by adding a 
  1.38            subdivision; 204B.28, subdivision 1; 204C.03, 
  1.39            subdivision 1; 204C.35; 204C.36, subdivisions 1, 3; 
  1.40            204D.04, subdivision 2; 204D.09; 204D.11, subdivision 
  1.41            4; 204D.24, subdivision 2; 205.13, subdivision 1a; 
  1.42            205.17, by adding a subdivision; 205.185, subdivision 
  1.43            3; 206.81; 211A.02, subdivision 4; 214.09, subdivision 
  1.44            3, as amended; 270A.07, subdivision 1; 317A.123, 
  1.45            subdivision 1; 317A.827, subdivision 2; 349.165, 
  1.46            subdivisions 1, 3; 352.01, subdivisions 2a, 2b, 11; 
  2.1             352.113, subdivisions 4, 6; 352.22, subdivision 8; 
  2.2             352.87, subdivisions 4, 5; 352.95, subdivisions 4, 5, 
  2.3             7; 352B.01, subdivisions 2, 3, 11; 352B.10, 
  2.4             subdivision 3; 352B.101; 353.01, subdivisions 1, 2, 
  2.5             2a, 2b, 6, 7, 11b, 12a, 16, by adding subdivisions; 
  2.6             353.27, subdivisions 2, 3, 4, 11; 353.86, subdivision 
  2.7             1; 354.05, subdivisions 2, 13; 354.41, subdivision 4; 
  2.8             354.52, subdivision 4; 354.534, subdivision 1; 
  2.9             354.536, subdivision 1; 354.539; 354A.011, 
  2.10            subdivisions 4, 24; 354A.098, subdivision 1; 354A.101, 
  2.11            subdivision 1; 354A.106; 354A.12, subdivision 5; 
  2.12            354A.31, subdivision 3; 354A.35, subdivision 4; 
  2.13            356.215, subdivision 4g; 356.24, subdivision 1; 
  2.14            356.55, subdivision 7; 356A.06, subdivision 5; 
  2.15            356A.08, subdivision 1; 357.18, subdivision 3; 358.10; 
  2.16            367.03, subdivision 6; 403.11, subdivision 1; 
  2.17            422A.155; 423B.01, by adding a subdivision; 423B.05, 
  2.18            by adding subdivisions; 424A.04, by adding a 
  2.19            subdivision; 473.13, by adding a subdivision; 490.121, 
  2.20            subdivision 4; 517.08, subdivisions 1b, 1c, as 
  2.21            amended; 574.26, subdivision 2; 645.44, by adding a 
  2.22            subdivision; Laws 1997, chapter 202, article 2, 
  2.23            section 61, as amended; Laws 1998, chapter 366, 
  2.24            section 80; Laws 1999, chapter 250, article 1, section 
  2.25            12, subdivision 3, as amended; Laws 2000, chapter 461, 
  2.26            article 10, section 3; proposing coding for new law in 
  2.27            Minnesota Statutes, chapters 3; 4A; 13; 16A; 16C; 16E; 
  2.28            200; 204B; 211B; 240A; 352; 352F; 353F; 354; 354A; 
  2.29            354B; 356; 383D; 473; proposing coding for new law as 
  2.30            Minnesota Statutes, chapters 116T; 423C; repealing 
  2.31            Minnesota Statutes 2000, sections 16A.67; 16A.6701; 
  2.32            16E.08; 43A.18, subdivision 5; 129D.06; 179A.07, 
  2.33            subdivision 7; 204B.06, subdivision 1a; 204C.15, 
  2.34            subdivision 2a; 246.18, subdivision 7; 354.41, 
  2.35            subdivision 9; 354A.026; Laws 1907, chapter 24; Laws 
  2.36            1913, chapters 318, 419; Laws 1917, chapter 196; Laws 
  2.37            1919, chapters 515, 523; Laws 1921, chapter 404; Laws 
  2.38            1923, chapter 61; Laws 1945, chapter 322; Laws 1959, 
  2.39            chapter 491; Laws 1959, chapter 568, as amended; Laws 
  2.40            1961, chapter 109; Extra Session Laws 1961, chapter 3; 
  2.41            Laws 1963, chapter 318, as amended; Laws 1965, chapter 
  2.42            519, as amended; Laws 1965, chapter 578, as amended; 
  2.43            Laws 1967, chapter 819, as amended; Laws 1967, chapter 
  2.44            824, as amended; Laws 1969, chapter 123, as amended; 
  2.45            Laws 1969, chapter 287; Laws 1971, chapter 542, as 
  2.46            amended; Laws 1975, chapter 57, as amended; Laws 1977, 
  2.47            chapter 164, section 2, as amended; Laws 1980, chapter 
  2.48            607, article XV, sections 8, as amended, 9, as 
  2.49            amended, 10, as amended; Laws 1988, chapter 572, 
  2.50            section 4; Laws 1988, chapter 574, section 3; Laws 
  2.51            1989, chapter 319, article 19, sections 6, as amended, 
  2.52            7, as amended; Laws 1990, chapter 589, article 1, 
  2.53            sections 5, as amended, 6, as amended; Laws 1992, 
  2.54            chapter 429; Laws 1992, chapter 454, section 2, as 
  2.55            amended; Laws 1992, chapter 471, article 2, as 
  2.56            amended; Laws 1993, chapter 125, as amended; Laws 
  2.57            1993, chapter 192, section 32; Laws 1994, chapter 591, 
  2.58            as amended; Laws 1994, chapter 632, article 3, section 
  2.59            14; Laws 1996, chapter 448, article 2, section 3; Laws 
  2.60            1996, chapter 448, article 3, section 1; Laws 1997, 
  2.61            chapter 233, article 4, sections 12, 13, 14, 15, 16, 
  2.62            17, 18, 19, 20, 21, 22; Laws 1998, chapter 390, 
  2.63            article 7, section 2; Laws 2000, chapter 461, article 
  2.64            17, sections 6, 7, 8, 9, 10, 11, 12, 13; Minnesota 
  2.65            Rules, part 8250.1400. 
  2.66  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.67                             ARTICLE 1 
  2.68                           APPROPRIATIONS 
  3.1   Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
  3.2      The sums shown in the columns marked "APPROPRIATIONS" are 
  3.3   appropriated from the general fund, or another fund named, to 
  3.4   the agencies and for the purposes specified in this act, to be 
  3.5   available for the fiscal years indicated for each purpose.  The 
  3.6   figures "2001," "2002," and "2003," where used in this act, mean 
  3.7   that the appropriation or appropriations listed under them are 
  3.8   available for the year ending June 30, 2001, June 30, 2002, or 
  3.9   June 30, 2003, respectively.  
  3.10                                             APPROPRIATIONS 
  3.11                                         Available for the Year 
  3.12                                             Ending June 30 
  3.13                                            2002         2003 
  3.14  Sec. 2.  LEGISLATURE 
  3.15  Subdivision 1.  Total  
  3.16  Appropriation                         67,776,000     68,773,000
  3.17                Summary by Fund
  3.18  General              67,626,000    68,623,000
  3.19  Health Care Access      150,000       150,000
  3.20  The amounts that may be spent from this 
  3.21  appropriation for each program are 
  3.22  specified in the following subdivisions.
  3.23  Subd. 2.  Senate                      24,021,000     22,918,000
  3.24  Subd. 3.  House of Representatives    28,035,000     30,318,000
  3.25  Subd. 4.  Legislative 
  3.26  Coordinating Commission               10,215,000     10,068,000
  3.27                Summary by Fund
  3.28  General              10,065,000     9,918,000
  3.29  Health Care Access      150,000       150,000
  3.30  Effective January 6, 2003, the salaries 
  3.31  of other constitutional officers are 
  3.32  set at the following percentages of the 
  3.33  salary of the governor:  
  3.34  attorney general - 95 percent; 
  3.35  state auditor - 85 percent; 
  3.36  secretary of state - 75 percent; 
  3.37  lieutenant governor - 65 percent. 
  3.38  The compensation council recommendation 
  3.39  of 2001 for legislators and 
  3.40  constitutional officers may not take 
  3.41  effect. 
  3.42  $6,420,000 the first year and 
  3.43  $6,535,000 the second year are for the 
  4.1   office of the revisor of statutes. 
  4.2   $1,242,000 the first year and 
  4.3   $1,273,000 the second year are for the 
  4.4   legislative reference library. 
  4.5   $5,505,000 the first year and 
  4.6   $5,469,000 the second year are for the 
  4.7   office of the legislative auditor and 
  4.8   legislative audit commission. 
  4.9   The legislative work group on 
  4.10  television coverage consists of two 
  4.11  members of the senate appointed by the 
  4.12  subcommittee on committees of the 
  4.13  committee on rules and administration, 
  4.14  two members of the house of 
  4.15  representatives appointed by the 
  4.16  speaker, and two members representing 
  4.17  the Minnesota public television 
  4.18  association appointed by the 
  4.19  association.  In an effort to take full 
  4.20  advantage of the new digital technology 
  4.21  and interconnection system to be 
  4.22  constructed by public television, the 
  4.23  work group must examine the best 
  4.24  management structure and distribution 
  4.25  format to provide gavel-to-gavel 
  4.26  coverage of house and senate sessions 
  4.27  and other legislative hearings of 
  4.28  public importance.  The group must make 
  4.29  specific recommendations regarding the 
  4.30  consolidation of television services 
  4.31  now being provided by the house and 
  4.32  senate, including the advisability and 
  4.33  practicality of having that coverage 
  4.34  provided by public television.  The 
  4.35  group must provide an interim report to 
  4.36  the legislature by February 1, 2002, 
  4.37  and submit a final report, including 
  4.38  budget recommendations, by January 10, 
  4.39  2003. 
  4.40  The legislative coordinating 
  4.41  commission, or a joint subcommittee 
  4.42  appointed by the commission for that 
  4.43  purpose, must investigate ways in which 
  4.44  the public information offices of the 
  4.45  senate and the house of representatives 
  4.46  might reduce costs and increase public 
  4.47  awareness by consolidating some or all 
  4.48  of their services, including, at a 
  4.49  minimum, the publication of a single 
  4.50  schedule for house and senate committee 
  4.51  meetings.  The commission must report 
  4.52  its findings and recommendations to the 
  4.53  legislature by February 1, 2002. 
  4.54  During the interim between the 2001 and 
  4.55  2002 legislative sessions, legislative 
  4.56  appointing authorities may work with 
  4.57  the department of employee relations to 
  4.58  place legislative staff on temporary 
  4.59  assignments in state agencies.  The 
  4.60  legislature is responsible for salary 
  4.61  and benefits of employees who choose 
  4.62  these temporary assignments.  Work 
  4.63  assignments and hours must be 
  4.64  negotiated by legislative appointing 
  4.65  authorities and the state agencies 
  4.66  getting interim use of legislative 
  5.1   staff.  Refusal of a commissioner to 
  5.2   find a suitable work assignment for 
  5.3   interested and qualified legislative 
  5.4   staff must be reported to the budget 
  5.5   committee chairs of the house and 
  5.6   senate that have jurisdiction over that 
  5.7   agency's budget. 
  5.8   Sec. 3.  GOVERNOR AND 
  5.9   LIEUTENANT GOVERNOR                    4,601,000      4,714,000
  5.10  This appropriation is to fund the 
  5.11  offices of the governor and lieutenant 
  5.12  governor.  
  5.13  $19,000 the first year and $19,000 the 
  5.14  second year are for necessary expenses 
  5.15  in the normal performance of the 
  5.16  governor's and lieutenant governor's 
  5.17  duties for which no other reimbursement 
  5.18  is provided. 
  5.19  By September 1 of each year, the 
  5.20  commissioner of finance shall report to 
  5.21  the chairs of the senate governmental 
  5.22  operations budget division and the 
  5.23  house state government finance division 
  5.24  any personnel costs incurred by the 
  5.25  office of the governor and lieutenant 
  5.26  governor that were supported by 
  5.27  appropriations to other agencies during 
  5.28  the previous fiscal year.  The office 
  5.29  of the governor shall inform the chairs 
  5.30  of the divisions before initiating any 
  5.31  interagency agreements. 
  5.32  The funds appropriated to the 
  5.33  governor's office for maintenance of 
  5.34  the governor's residence are 
  5.35  transferred to the department of 
  5.36  administration for the same purpose. 
  5.37  Sec. 4.  STATE AUDITOR                10,051,000     10,297,000
  5.38  Sec. 5.  STATE TREASURER               2,351,000      2,331,000
  5.39  $1,093,000 the first year and 
  5.40  $1,125,000 the second year are for the 
  5.41  treasurer to pay for banking services 
  5.42  by fees rather than by compensating 
  5.43  balances.  
  5.44  Sec. 6.  ATTORNEY GENERAL             29,278,000     29,911,000
  5.45                Summary by Fund
  5.46  General              26,825,000    27,406,000
  5.47  State Government
  5.48  Special Revenue       1,834,000     1,876,000
  5.49  Environmental           142,000       145,000 
  5.50  Solid Waste             477,000       484,000 
  5.51  Sec. 7.  SECRETARY OF STATE            7,410,000      7,465,000
  5.52  $1,306,000 the first year and 
  5.53  $1,054,000 the second year are for 
  5.54  uniform commercial code operating costs.
  6.1   The base funding for this activity is 
  6.2   $914,000 for fiscal year 2004 and 
  6.3   $861,000 for fiscal year 2005. 
  6.4   Sec. 8.  CAMPAIGN FINANCE AND 
  6.5   PUBLIC DISCLOSURE BOARD                  674,000        702,000
  6.6   For 2001 - $35,000
  6.7   $35,000 in fiscal year 2001 is for the 
  6.8   campaign finance and public disclosure 
  6.9   board for operating budget deficiencies.
  6.10  Sec. 9.  INVESTMENT BOARD              2,477,000      2,535,000
  6.11  Sec. 10.  ADMINISTRATIVE HEARINGS      7,444,000      7,941,000
  6.12  This appropriation is from the workers' 
  6.13  compensation fund. 
  6.14  Fee increases proposed for the Office 
  6.15  of Administrative Hearings by the 
  6.16  governor in the 2002-2003 state 
  6.17  government biennial budget document are 
  6.18  approved, as well as fee increases 
  6.19  necessary as a result of judicial 
  6.20  salary increases. 
  6.21  Sec. 11.  OFFICE OF STRATEGIC 
  6.22  AND LONG-RANGE PLANNING                5,621,000      4,988,000
  6.23  $170,000 the first year is to continue 
  6.24  the generic environmental impact 
  6.25  statement on animal agriculture.  Funds 
  6.26  not spent in the first year are 
  6.27  available in the second year. 
  6.28  $500,000 the first year is for one-time 
  6.29  grants of $50,000 each to regional 
  6.30  development commissions or, in regions 
  6.31  not served by regional development 
  6.32  commissions, to regional organizations 
  6.33  selected by the director, to support 
  6.34  planning work on behalf of local units 
  6.35  of government.  The planning work must 
  6.36  take into consideration any impacts on 
  6.37  private property rights and must 
  6.38  include at least one of the following:  
  6.39  (1) development of local zoning 
  6.40  ordinances; (2) land use plans; (3) 
  6.41  community or economic development 
  6.42  plans; (4) transportation and transit 
  6.43  plans; (5) solid waste management 
  6.44  plans; (6) wastewater management plans; 
  6.45  (7) workforce development plans; (8) 
  6.46  housing development plans and market 
  6.47  analyses; (9) rural health service and 
  6.48  senior nutrition plans; (10) natural 
  6.49  resources management plans; or (11) 
  6.50  development of a geographical 
  6.51  information systems database to serve a 
  6.52  region's needs, including hardware and 
  6.53  software purchases and related labor 
  6.54  costs.  State grant funds must be 
  6.55  matched on a dollar-for-dollar basis by 
  6.56  nonstate funds.  
  6.57  The office of strategic and long-range 
  6.58  planning, in consultation with the 
  6.59  department of natural resources and 
  6.60  appropriate and affected parties, must 
  7.1   prepare urban rivers sustainable 
  7.2   development draft guidelines along the 
  7.3   central business districts of rivers in 
  7.4   urban areas of the state.  The office 
  7.5   must: 
  7.6   (1) evaluate existing state and 
  7.7   municipal laws; 
  7.8   (2) evaluate the need for the 
  7.9   department of natural resources to have 
  7.10  authority to adopt rules to implement 
  7.11  the Mississippi river critical area 
  7.12  order (executive order 79-19); 
  7.13  (3) review federal legislation 
  7.14  affecting urban rivers; and 
  7.15  (4) identify the technical and 
  7.16  administrative procedures to guide 
  7.17  urban river development.  The draft 
  7.18  guidelines must be made available to 
  7.19  the environmental and economic 
  7.20  development policy committees of the 
  7.21  legislature, and to interested parties, 
  7.22  by January 15, 2002. 
  7.23  $100,000 the first year is for a grant 
  7.24  to support subregional comprehensive 
  7.25  planning by the N.M. I-35W Corridor 
  7.26  Coalition.  The appropriation is 
  7.27  available until June 30, 2003.  The 
  7.28  subregional work must include the 
  7.29  following components leading to a 
  7.30  coordinated subregional comprehensive 
  7.31  plan submission to the metropolitan 
  7.32  council in 2003:  (1) coordinated land 
  7.33  use plans; (2) coordinated economic 
  7.34  development and redevelopment 
  7.35  strategies focused on redefining 
  7.36  metropolitan competitiveness with 
  7.37  linkage to creating local job 
  7.38  opportunities and integrated housing, 
  7.39  transportation, and transit systems; 
  7.40  (3) coordinated transportation and 
  7.41  transit plans; (4) coordinated 
  7.42  workforce development plans; (5) 
  7.43  coordinated subregional housing 
  7.44  development plans and market analyses 
  7.45  ensuring healthy neighborhoods and 
  7.46  increased choice in lifecycle housing; 
  7.47  (6) coordinated natural resources 
  7.48  management plans; (7) expanded GIS 
  7.49  database management system focused on 
  7.50  improving subregional decision making 
  7.51  through access to better data and tools 
  7.52  for analysis as well as being 
  7.53  exportable to other regional and 
  7.54  subregional collaborative efforts; and 
  7.55  (8) establishment of a coalition 
  7.56  institute structured to utilize livable 
  7.57  community principles to address issues 
  7.58  of growth and infill, to support 
  7.59  standards for quality development, and 
  7.60  to create direct benefit for learning 
  7.61  experience and sharing with other 
  7.62  regional and subregional organizations 
  7.63  and agencies.  State grant funds must 
  7.64  be matched on a dollar-for-dollar basis 
  7.65  from nonstate funds.  Local planning 
  7.66  work supported by this appropriation 
  8.1   must adhere to the goals of sustainable 
  8.2   land use planning under Minnesota 
  8.3   Statutes, section 4A.08. 
  8.4   The director must create a competition 
  8.5   council.  The competition council must 
  8.6   make recommendations to the executive 
  8.7   and legislative branches on 
  8.8   opportunities, strategies, and best 
  8.9   practices for competitive delivery of 
  8.10  services or goods currently delivered 
  8.11  by government.  
  8.12  Sec. 12.  ADMINISTRATION 
  8.13  Subdivision 1.  Total 
  8.14  Appropriation                         67,557,000     46,971,000
  8.15  For 2001 - $75,000 
  8.16                Summary by Fund
  8.17  General              45,230,000    26,602,000
  8.18  For 2001 - $75,000 
  8.19  State Government 
  8.20  Special Revenue      22,027,000    20,369,000
  8.21  Special Revenue         300,000       -0- 
  8.22  The amounts that may be spent from this 
  8.23  appropriation for each program are 
  8.24  specified in the following subdivisions.
  8.25  Subd. 2.  Operations Management 
  8.26       3,632,000      3,745,000
  8.27  Subd. 3.  Office of Technology
  8.28      13,173,000      3,435,000
  8.29                Summary by Fund
  8.30  General              12,299,000     2,830,000
  8.31  State Government 
  8.32  Special Revenue         574,000       605,000
  8.33  Special Revenue         300,000         -0-  
  8.34  $300,000 in fiscal year 2002 is from 
  8.35  the unemployment insurance technology 
  8.36  initiative account in the special 
  8.37  revenue fund for a study of the 
  8.38  unemployment insurance technology 
  8.39  initiative project.  The study should 
  8.40  include an analysis of current business 
  8.41  processes, identification of 
  8.42  re-engineering opportunities, and 
  8.43  development of a project plan, and 
  8.44  should ensure integration with the 
  8.45  state's enterprise architecture.  The 
  8.46  study is the joint responsibility of 
  8.47  the office of technology and the 
  8.48  department of economic security 
  8.49  unemployment branch.  The study must be 
  8.50  completed no later than June 30, 2002.  
  8.51  Upon completion of the study, the 
  8.52  department of economic security may 
  9.1   begin immediate and independent 
  9.2   implementation of the full project plan.
  9.3   $9,400,000 is for deposit in the 
  9.4   technology enterprise fund.  From this 
  9.5   amount, the commissioner may spend up 
  9.6   to $864,000 for technology analysts in 
  9.7   the office of technology, up to 
  9.8   $1,489,000 for small agency 
  9.9   infrastructure, up to $5,400,000 for 
  9.10  completion of the income tax 
  9.11  re-engineering project in the 
  9.12  department of revenue, up to $1,200,000 
  9.13  for new income tax re-engineering 
  9.14  costs, and up to $40,000 for the local 
  9.15  area network at the capitol area 
  9.16  architectural and planning board. 
  9.17  For the fiscal year 2004-2005 biennium, 
  9.18  up to $540,000 each year may be added 
  9.19  to the base level funding for 
  9.20  technology analyst positions. 
  9.21  For the fiscal year 2004-2005 biennium, 
  9.22  up to a total of $500,000 may be added 
  9.23  to the base level funding for the 
  9.24  Capitol Area Architectural and Planning 
  9.25  Board, the Architecture and Engineering 
  9.26  Board, the Campaign Finance and Public 
  9.27  Disclosure Board, the Mediation 
  9.28  Services Bureau, the Minnesota Racing 
  9.29  Commission, the Sentencing Guidelines 
  9.30  Commission, the Department of Veterans 
  9.31  Affairs, and the Lawful Gambling 
  9.32  Control Board. 
  9.33  For the fiscal year 2004-2005 biennium, 
  9.34  up to $300,000 each year may be added 
  9.35  to the base level funding of the 
  9.36  Department of Revenue for the 
  9.37  operational costs related to the income 
  9.38  tax re-engineering project. 
  9.39  $1,179,000 from the state government 
  9.40  special revenue fund is for a transfer 
  9.41  to the board of chiropractic examiners, 
  9.42  the board of medical practice, the 
  9.43  board of nursing, and the board of 
  9.44  social work for the small agency 
  9.45  infrastructure project.  This 
  9.46  appropriation is available until June 
  9.47  30, 2003.  The commissioner shall 
  9.48  report on the progress of the small 
  9.49  agency infrastructure project to the 
  9.50  chairs of the legislative committees 
  9.51  responsible for this budget item by 
  9.52  January 15, 2002. 
  9.53  (a) The commissioner of administration 
  9.54  must contract with an entity outside of 
  9.55  state government to prepare a 
  9.56  supplemental evaluation, risk 
  9.57  assessment, and risk mitigation plan 
  9.58  for the CriMNet system.  The entity 
  9.59  performing this work must not have any 
  9.60  other direct or indirect financial 
  9.61  interest in the project. 
  9.62  (b) Before January 1, 2002, each 
  9.63  recipient of an appropriation for the 
  9.64  CriMNet system must, in consultation 
 10.1   with the commissioner of 
 10.2   administration, submit to the entity 
 10.3   selected under paragraph (a):  
 10.4   (1) a list of objectives the entity 
 10.5   expects to achieve with the money 
 10.6   appropriated to it; and 
 10.7   (2) a list of performance measures that 
 10.8   can be used to determine the extent to 
 10.9   which these objectives are being met. 
 10.10  (c) The evaluation, risk assessment, 
 10.11  and risk mitigation plan must 
 10.12  separately consider each component of 
 10.13  the project, including:  suspense 
 10.14  files, the integration backbone, the 
 10.15  Minnesota court information system, 
 10.16  photo imaging, livescan cardhandler, 
 10.17  predatory offender registration, CJDN 
 10.18  upgrade, statewide supervision, and 
 10.19  county planning and implementation 
 10.20  grants.  For each component, the 
 10.21  evaluation may also consider: 
 10.22  (1) the likelihood that each entity 
 10.23  will achieve its objectives within the 
 10.24  limits of the money appropriated; and 
 10.25  (2) the appropriateness of the 
 10.26  performance measures suggested by each 
 10.27  entity receiving an appropriation. 
 10.28  (d) Work on the evaluation, risk 
 10.29  assessment, and risk mitigation plan 
 10.30  must begin as soon as practicable but 
 10.31  no later than November 15, 2001.  The 
 10.32  results of the evaluation, risk 
 10.33  assessment, and risk mitigation plan 
 10.34  must be reported to the legislature, 
 10.35  the commissioner of administration, and 
 10.36  the chief justice of the supreme court 
 10.37  by March 15, 2002.  The final report 
 10.38  must include recommendations on changes 
 10.39  or improvements needed for each 
 10.40  component of the program and whether or 
 10.41  not a component should proceed.  A 
 10.42  recommendation not to proceed with a 
 10.43  component of the project is only 
 10.44  advisory.  Decisions regarding 
 10.45  proceeding with project components will 
 10.46  be made by the commissioner of public 
 10.47  safety in consultation with the policy 
 10.48  group. 
 10.49  (e) During the biennium ending June 30, 
 10.50  2003, Minnesota Statutes, section 
 10.51  16E.0465 does not apply to the CriMNet 
 10.52  system. 
 10.53  $468,000 the first year and $468,000 
 10.54  the second year are for ongoing costs 
 10.55  of the North Star II project under 
 10.56  Minnesota Statutes, section 16E.07. 
 10.57  $120,000 from the general fund is for 
 10.58  the Minnesota high technology 
 10.59  foundation for the Minnesota computers 
 10.60  for schools program.  The foundation 
 10.61  must provide a match of $1 of private 
 10.62  funds for every $1 of state funds 
 11.1   appropriated for the Minnesota 
 11.2   computers for schools program. 
 11.3   The office must establish the state 
 11.4   information architecture under 
 11.5   Minnesota Statutes, section 16E.04, 
 11.6   subdivision 2, by March 1, 2002. 
 11.7   Subd. 4.  Intertechnologies Group
 11.8       22,312,000     20,623,000
 11.9                 Summary by Fund
 11.10  General                 859,000       859,000
 11.11  State Government 
 11.12  Special Revenue      21,453,000    19,764,000
 11.13  $3,988,000 in fiscal year 2002 is from 
 11.14  the 911 fund under Minnesota Statutes, 
 11.15  section 403.11, for increased costs 
 11.16  associated with wireless-enhanced 911 
 11.17  and for reimbursements to providers for 
 11.18  prior period services not yet certified 
 11.19  by the public utilities commission. 
 11.20  The appropriation from the special 
 11.21  revenue fund is for recurring costs of 
 11.22  911 emergency telephone service. 
 11.23  Subd. 5.  Facilities Management
 11.24       11,689,000    11,929,000
 11.25  For 2001 - $75,000 
 11.26  $7,584,000 the first year and 
 11.27  $7,844,000 the second year are for 
 11.28  office space costs of the legislature 
 11.29  and veterans organizations, for 
 11.30  ceremonial space, and for statutorily 
 11.31  free space. 
 11.32  $2,000,000 of the balance in the state 
 11.33  building code account in the state 
 11.34  government special revenue fund as of 
 11.35  July 1, 2001, is canceled to the 
 11.36  general fund. 
 11.37  The unexpended balance in the parking 
 11.38  surcharge account in the state 
 11.39  government special revenue fund as of 
 11.40  July 1, 2001, is canceled to the 
 11.41  general fund. 
 11.42  A joint house-senate task force must be 
 11.43  appointed to study the allocation of 
 11.44  spaces in the State Office Building 
 11.45  parking ramp.  Members of the task 
 11.46  force must include a representative of 
 11.47  the house majority, the house minority, 
 11.48  the senate majority, the senate 
 11.49  minority, the legislative coordinating 
 11.50  commission, the legislative reference 
 11.51  library, the revisor's office, and the 
 11.52  secretary of state.  A report must be 
 11.53  presented to the chairs and lead 
 11.54  minority members of the house and 
 11.55  senate state government operations 
 11.56  committees, by October 15, 2001.  In 
 12.1   developing the report, the task force 
 12.2   must examine the issues of proportional 
 12.3   representation based on full-time staff 
 12.4   housed in the State Office Building, 
 12.5   safety, fringe benefits, recruitment 
 12.6   needs, and staff seniority, and may 
 12.7   consider other appropriate issues.  The 
 12.8   report must include a transition plan 
 12.9   for any recommended changes, and may 
 12.10  include recommendations regarding the 
 12.11  creation of additional secure parking 
 12.12  spaces. 
 12.13  The commissioner of administration and 
 12.14  the capitol area architectural and 
 12.15  planning board must investigate the 
 12.16  possibility and advisability of 
 12.17  locating a bookshop or giftshop in the 
 12.18  capitol and must report their findings 
 12.19  and recommendations to the legislature 
 12.20  by February 1, 2002. 
 12.21  $75,000 in fiscal year 2001 and 
 12.22  $125,000 in fiscal year 2002 are for 
 12.23  pursuing litigation to recover costs 
 12.24  associated with indoor air quality 
 12.25  issues at the Luverne veterans home. 
 12.26  Subd. 6.  Management Services
 12.27       3,684,000      3,907,000 
 12.28  $196,000 the first year and $196,000 
 12.29  the second year are for the office of 
 12.30  the state archaeologist. 
 12.31  $74,000 the first year and $74,000 the 
 12.32  second year are for the developmental 
 12.33  disabilities council. 
 12.34  The management analysis division, in 
 12.35  consultation with the Minnesota Amateur 
 12.36  Sports Commission, must report to the 
 12.37  legislature by January 15, 2002, a plan 
 12.38  for the commission to operate without a 
 12.39  state subsidy, beginning July 1, 2003.  
 12.40  The plan must describe:  (1) new 
 12.41  revenues the commission would obtain to 
 12.42  replace state subsidies; or (2) plans 
 12.43  for cost reductions so that anticipated 
 12.44  revenues would equal expenditures, 
 12.45  without state subsidies. 
 12.46  The management analysis division shall 
 12.47  conduct a study to assess the 
 12.48  feasibility of collecting fees for 
 12.49  services provided by the office of the 
 12.50  state archaeologist.  The management 
 12.51  analysis division shall submit a report 
 12.52  to the chair of the senate state 
 12.53  government, economic development and 
 12.54  the judiciary budget division and the 
 12.55  chair of the house of representatives 
 12.56  state government finance committees by 
 12.57  July 15, 2002. 
 12.58  $200,000 the first year and $100,000 
 12.59  the second year are for the STAR 
 12.60  program.  This is a one-time 
 12.61  appropriation.  
 13.1   Subd. 7.  Fiscal Agent
 13.2        1,937,000          2,000
 13.3   $35,000 the first year is for a grant 
 13.4   to the Longville city hall district to 
 13.5   complete construction of the Longville 
 13.6   city hall ambulance building. 
 13.7   $2,000 the first year and $2,000 the 
 13.8   second year are for the state 
 13.9   employees' band. 
 13.10  $1,900,000 the first year is for 
 13.11  deposit in the voting equipment grant 
 13.12  account. 
 13.13  Subd. 8.  Public Broadcasting
 13.14       11,130,000     3,330,000
 13.15  $1,450,000 the first year and 
 13.16  $1,450,000 the second year are for 
 13.17  matching grants for public television.  
 13.18  $600,000 the first year and $600,000 
 13.19  the second year are for public 
 13.20  television equipment grants.  
 13.21  $7,800,000 the first year is for grants 
 13.22  to noncommercial television stations to 
 13.23  assist with conversion to a digital 
 13.24  broadcast signal as mandated by the 
 13.25  federal government.  In order to 
 13.26  qualify for a grant, a station must 
 13.27  meet the criteria established for 
 13.28  grants in Minnesota Statutes, section 
 13.29  129D.12, subdivision 2. 
 13.30  Grants for the conversion to digital 
 13.31  television must not be distributed 
 13.32  except as agreed to in writing by the 
 13.33  commissioner of administration and the 
 13.34  Minnesota Public Television 
 13.35  Association.  The agreement must 
 13.36  include provisions specifying uses of 
 13.37  digital broadcast capability to serve 
 13.38  needs of state and local units of 
 13.39  government in a manner consistent with 
 13.40  project management analyses of the 
 13.41  Minnesota office of technology and, to 
 13.42  the greatest extent feasible, 
 13.43  integrating digital broadcast 
 13.44  infrastructure and use of spectrum with 
 13.45  existing and prospective statewide 
 13.46  information and communications 
 13.47  networks.  The agreement must be made 
 13.48  by January 15, 2002, or this 
 13.49  appropriation cancels. 
 13.50  To avoid duplication, a station using 
 13.51  money from this appropriation to 
 13.52  construct a tower must consult with 
 13.53  public radio stations in its area to 
 13.54  determine if they have a similar need.  
 13.55  If a public radio station has a similar 
 13.56  need, a cost benefit analysis must be 
 13.57  completed to determine if it is more 
 13.58  economically feasible to jointly 
 13.59  construct the new tower.  All parties 
 13.60  must share in the cost of construction 
 14.1   and maintenance of the tower. 
 14.2   Equipment or digital conversion grant 
 14.3   allocations shall be made after 
 14.4   considering the recommendations of the 
 14.5   Minnesota public television association.
 14.6   $441,000 the first year and $441,000 
 14.7   the second year are for grants and for 
 14.8   contracts with the senate and house of 
 14.9   representatives for public information 
 14.10  television, Internet, Intranet, and 
 14.11  other transmission of legislative 
 14.12  activities.  At least one-half must go 
 14.13  for programming to be broadcast and 
 14.14  transmitted to rural Minnesota. 
 14.15  $25,000 the first year and $25,000 the 
 14.16  second year are for grants to the Twin 
 14.17  Cities regional cable channel. 
 14.18  $320,000 the first year and $320,000 
 14.19  the second year are for community 
 14.20  service grants to public educational 
 14.21  radio stations. 
 14.22  $87,000 the first year and $87,000 the 
 14.23  second year are for equipment grants to 
 14.24  public educational radio stations.  The 
 14.25  grants must be allocated after 
 14.26  considering the recommendations of the 
 14.27  association of Minnesota public 
 14.28  educational radio stations under 
 14.29  Minnesota Statutes, section 129D.14. 
 14.30  $407,000 the first year and $407,000 
 14.31  the second year are for equipment 
 14.32  grants to Minnesota Public Radio, Inc. 
 14.33  If an appropriation for either year for 
 14.34  grants to public television or radio 
 14.35  stations is not sufficient, the 
 14.36  appropriation for the other year is 
 14.37  available for it. 
 14.38  Subd. 9.  Minneapolis-Guthrie 
 14.39  Theater
 14.40  The appropriation in Laws 2000, chapter 
 14.41  492, article 1, section 14, subdivision 
 14.42  3, may be used to predesign and begin 
 14.43  design of a new Guthrie Theater and 
 14.44  need not be used to acquire and prepare 
 14.45  a site for the theater nor to 
 14.46  construct, furnish, and equip it. 
 14.47  Sec. 13.  CAPITOL AREA ARCHITECTURAL 
 14.48  AND PLANNING BOARD                       315,000        323,000
 14.49  During the biennium ending June 30, 
 14.50  2003, money received by the board from 
 14.51  public agencies, as provided by 
 14.52  Minnesota Statutes, section 15.50, 
 14.53  subdivision 3, is appropriated to the 
 14.54  board. 
 14.55  Sec. 14.  FINANCE 
 14.56  Subdivision 1.  Total 
 14.57  Appropriation                         18,250,000     18,639,000
 15.1   The amounts that may be spent from this 
 15.2   appropriation for each program are 
 15.3   specified in the following subdivisions.
 15.4   Subd. 2.  State Financial Management 
 15.5        8,443,000      8,548,000
 15.6   Subd. 3.  Information and 
 15.7   Management Services 
 15.8        9,807,000     10,091,000
 15.9   The commissioners of finance and 
 15.10  administration shall study building 
 15.11  projects authorized for state 
 15.12  agencies.  The study shall include an 
 15.13  estimate of any change in operating 
 15.14  costs to agencies related to the 
 15.15  construction or major renovation of 
 15.16  facilities that have been authorized 
 15.17  since 1996.  The analysis may consider 
 15.18  a representative sample of projects and 
 15.19  must measure actual cost increases due 
 15.20  solely to building operations.  The 
 15.21  study shall also contain a comparison 
 15.22  of the cash flows of the projects 
 15.23  estimated by agencies at the time 
 15.24  projects were proposed to the 
 15.25  legislature and the actual cash flows 
 15.26  of the projects.  The commissioners 
 15.27  shall consult with the finance chair in 
 15.28  the senate and the ways and means chair 
 15.29  in the house on the methodology used in 
 15.30  the analysis and submit a final report 
 15.31  to the chairs by January 15, 2002.  The 
 15.32  commissioner of finance shall use the 
 15.33  results of the analysis of increased 
 15.34  operating costs in any planning budget 
 15.35  included under Minnesota Statutes, 
 15.36  section 16A.103. 
 15.37  Sec. 15.  EMPLOYEE RELATIONS 
 15.38  Subdivision 1.  Total 
 15.39  Appropriation                          8,245,000      8,470,000
 15.40  The amounts that may be spent from this 
 15.41  appropriation for each program are 
 15.42  specified in the following subdivisions.
 15.43  Subd. 2.  Employee Insurance
 15.44          70,000         70,000
 15.45  Subd. 3.  Human Resources Management
 15.46       8,175,000      8,400,000
 15.47  $25,000 the first year and $25,000 the 
 15.48  second year are for a grant to the 
 15.49  government training service. 
 15.50  $50,000 each year is for the training 
 15.51  and development resource center. 
 15.52  Sec. 16.  REVENUE 
 15.53  Subdivision 1.  Total  
 15.54  Appropriation                         95,259,000     96,549,000
 16.1                 Summary by Fund
 16.2   General              91,030,000    92,238,000
 16.3   Health Care Access    1,731,000     1,764,000
 16.4   Highway User 
 16.5   Tax Distribution      2,191,000     2,237,000
 16.6   Environmental           107,000       110,000
 16.7   Solid Waste             200,000       200,000 
 16.8   The amounts that may be spent from this 
 16.9   appropriation for each program are 
 16.10  specified in the following subdivisions.
 16.11  Subd. 2.  Tax System Management
 16.12      84,420,000     85,728,000
 16.13                Summary by Fund
 16.14  General              80,244,000    81,470,000
 16.15  Health Care Access    1,678,000     1,711,000
 16.16  Highway User 
 16.17  Tax Distribution      2,191,000     2,237,000
 16.18  Environmental           107,000       110,000
 16.19  Solid Waste             200,000       200,000 
 16.20  (a) $1,037,000 the first year and 
 16.21  $624,000 the second year is for an 
 16.22  initiative to identify and collect tax 
 16.23  liabilities from individuals and 
 16.24  businesses that currently do not pay 
 16.25  all taxes owed.  This initiative is 
 16.26  expected to result in new general fund 
 16.27  revenues of $20,000,000 for the 
 16.28  biennium ending June 30, 2003. 
 16.29  (b) $1,783,000 the first year and 
 16.30  $1,570,000 the second year is for an 
 16.31  initiative to increase audit and 
 16.32  collection activity in the income tax, 
 16.33  sales tax, and corporate tax areas.  
 16.34  This initiative is expected to result 
 16.35  in new general fund revenues of 
 16.36  $32,000,000 for the biennium ending 
 16.37  June 30, 2003. 
 16.38  (c) The department must report to the 
 16.39  chairs of the House Ways and Means and 
 16.40  Senate Finance Committees by January 
 16.41  15, 2002, and January 15, 2003, on the 
 16.42  following performance indicators: 
 16.43  (1) The number of debt cases referred 
 16.44  each year to the Internal Revenue 
 16.45  Service for recapture of Minnesota 
 16.46  state taxes from federal tax refunds 
 16.47  and the associated dollar amounts. 
 16.48  (2) The number of nonfiling 
 16.49  corporations brought into the corporate 
 16.50  tax system each year and the percentage 
 16.51  and dollar amounts of valid tax 
 16.52  liabilities collected. 
 17.1   (3) The number of nonfiling businesses 
 17.2   brought into the sales and use tax 
 17.3   system and the percentage and dollar 
 17.4   amounts of the valid tax liabilities 
 17.5   collected. 
 17.6   (4) The number of individual nonfiler 
 17.7   cases resolved and the percentage and 
 17.8   dollar amounts of valid tax liabilities 
 17.9   collected. 
 17.10  The reports must also identify base 
 17.11  level expenditures and staff positions 
 17.12  related to compliance and audit 
 17.13  activities, including baseline 
 17.14  information as of January 1, 2001.  The 
 17.15  information must be provided at the 
 17.16  budget activity level. 
 17.17  (d) Of the amounts appropriated in 
 17.18  paragraphs (a) and (b), the necessary 
 17.19  amount is transferred from the 
 17.20  commissioner of revenue to the 
 17.21  legislative auditor, not to exceed 
 17.22  $50,000, for an audit of the tax 
 17.23  collection activities.  The purpose of 
 17.24  this audit is to compare actual revenue 
 17.25  collections with the estimates of new 
 17.26  revenue collections submitted by the 
 17.27  department to the 2001 legislature.  
 17.28  The legislative auditor shall report 
 17.29  the findings of the audit to the 
 17.30  legislature by February 1, 2003. 
 17.31  Subd. 3.  Accounts Receivable Management
 17.32      10,839,000     10,821,000
 17.33                Summary by Fund
 17.34  General              10,786,000    10,768,000
 17.35  Health Care Access       53,000        53,000
 17.36  (a) $275,000 the first year and 
 17.37  $257,000 the second year are for an 
 17.38  initiative to identify and collect tax 
 17.39  liabilities from individuals and 
 17.40  businesses that currently do not pay 
 17.41  all taxes owed. 
 17.42  (b) $1,100,000 the first year and 
 17.43  $1,026,000 the second year are for an 
 17.44  initiative to increase audit and 
 17.45  collection activity in the income tax, 
 17.46  sales tax, and corporate tax areas. 
 17.47  Sec. 17.  MILITARY AFFAIRS  
 17.48  Subdivision 1.  Total 
 17.49  Appropriation                         14,121,000    14,021,000
 17.50  The amounts that may be spent from this 
 17.51  appropriation for each program are 
 17.52  specified in the following subdivisions.
 17.53  In fiscal year 2001, $186,000 in 
 17.54  general funds is transferred from Laws 
 17.55  1999, chapter 250, article 1, section 
 17.56  28, to the department of military 
 17.57  affairs to pay for higher than 
 18.1   anticipated fuel costs of the 
 18.2   department's training and community 
 18.3   center facilities.  These funds are 
 18.4   available until December 21, 2001. 
 18.5   Subd. 2.  Maintenance of Training 
 18.6   Facilities 
 18.7         7,141,000      7,244,000 
 18.8   Subd. 3.  General Support
 18.9         2,049,000      1,845,000 
 18.10  $75,000 the first year is to assist in 
 18.11  the operation and staffing of the 
 18.12  Minnesota national guard youth camp at 
 18.13  Camp Ripley.  This appropriation is 
 18.14  available until June 30, 2003, and is 
 18.15  contingent on its being matched by 
 18.16  money from other sources. 
 18.17  The department may not sell or lease 
 18.18  land in Ramsey county to the department 
 18.19  of transportation, nor may the 
 18.20  department locate a joint or shared 
 18.21  facility with the department of 
 18.22  transportation within the county. 
 18.23  Subd. 4.  Enlistment Incentives
 18.24        4,856,000      4,857,000 
 18.25  $4,856,000 the first year and 
 18.26  $4,857,000 the second is for enlistment 
 18.27  incentives. 
 18.28  If appropriations for either year of 
 18.29  the biennium are insufficient, the 
 18.30  appropriation from the other year is 
 18.31  available.  The appropriations for 
 18.32  enlistment incentives are available 
 18.33  until expended. 
 18.34  Subd. 5.  Emergency Services 
 18.35          75,000         75,000
 18.36  These appropriations are for expenses 
 18.37  of military forces ordered to active 
 18.38  duty under Minnesota Statutes, chapter 
 18.39  192.  If the appropriation for either 
 18.40  year is insufficient, the appropriation 
 18.41  for the other year is available for it. 
 18.42  Sec. 18.  VETERANS AFFAIRS             4,419,000      4,484,000
 18.43  Sec. 19.  VETERANS OF FOREIGN 
 18.44  WARS                                      55,000         55,000
 18.45  For carrying out the provisions of Laws 
 18.46  1945, chapter 455. 
 18.47  Sec. 20.  MILITARY ORDER OF 
 18.48  THE PURPLE HEART                          20,000         20,000
 18.49  Sec. 21.  DISABLED AMERICAN VETERANS      13,000         13,000
 18.50  For carrying out the provisions of Laws 
 18.51  1941, chapter 425. 
 19.1   Sec. 22.  GAMBLING CONTROL             2,419,000      2,522,000
 19.2   Sec. 23.  RACING COMMISSION              414,000        426,000
 19.3   Sec. 24.  BOARD OF THE ARTS        
 19.4   Subdivision 1.  Total             
 19.5   Appropriation                         13,118,000     13,142,000
 19.6   Any unencumbered balance remaining in 
 19.7   this section the first year does not 
 19.8   cancel but is available for the second 
 19.9   year of the biennium. 
 19.10  Subd. 2.  Operations and Services
 19.11        1,043,000      1,067,000 
 19.12  By January 15, 2002, the board must 
 19.13  report to the legislature the following 
 19.14  information for each group funded by 
 19.15  the board in fiscal year 2001 which had 
 19.16  annual operating expenses of $500,000 
 19.17  or more: 
 19.18  (1) the number of audience members 
 19.19  attending events produced or sponsored 
 19.20  by each arts organization and the type 
 19.21  of services provided; 
 19.22  (2) services that the group would not 
 19.23  have provided but for the state 
 19.24  funding; 
 19.25  (3) the effect of the state funding on 
 19.26  the quality of the service or artistic 
 19.27  experience provided to the public; and 
 19.28  (4) the amount of funding the group has 
 19.29  received from the board each year since 
 19.30  creation of the board. 
 19.31  Subd. 3.  Grants Program 
 19.32        8,540,000      8,540,000 
 19.33  Subd. 4.  Regional Arts Councils 
 19.34        3,535,000      3,535,000 
 19.35  Sec. 25.  MINNESOTA HUMANITIES 
 19.36  COMMISSION                             1,022,000      1,036,000
 19.37  Any unencumbered balance remaining in 
 19.38  the first year does not cancel but is 
 19.39  available for the second year of the 
 19.40  biennium. 
 19.41  The humanities commission must develop 
 19.42  a plan for the selection of a Minnesota 
 19.43  poet laureate.  The commission must 
 19.44  report the plan to the legislature by 
 19.45  February 1, 2002. 
 19.46  Sec. 26.  TORT CLAIMS                    275,000        275,000
 19.47  To be spent by the commissioner of 
 19.48  finance.  
 19.49  If the appropriation for either year is 
 19.50  insufficient, the appropriation for the 
 20.1   other year is available for it.  
 20.2   Sec. 27.  MINNESOTA STATE   
 20.3   RETIREMENT SYSTEM                      9,299,000      9,856,000
 20.4   The amounts estimated to be needed for 
 20.5   each program are as follows: 
 20.6   (a) Legislators 
 20.7        6,821,000      7,230,000
 20.8   Under Minnesota Statutes, sections 
 20.9   3A.03, subdivision 2; 3A.04, 
 20.10  subdivisions 3 and 4; and 3A.11. 
 20.11  (b) Constitutional Officers 
 20.12         355,000        376,000
 20.13  Under Minnesota Statutes, sections 
 20.14  352C.031, subdivision 5; 352C.04, 
 20.15  subdivision 3; and 352C.09, subdivision 
 20.16  2. 
 20.17  (c) Judges
 20.18       2,123,000      2,250,000 
 20.19  If an appropriation in this section for 
 20.20  either year is insufficient, the 
 20.21  appropriation for the other year is 
 20.22  available for it. 
 20.23  Sec. 28.  MINNEAPOLIS EMPLOYEES
 20.24  RETIREMENT FUND                        3,232,000      3,232,000 
 20.25  Sec. 29.  POLICE AND FIRE   
 20.26  AMORTIZATION AID                       6,345,000      6,345,000
 20.27  $4,925,000 the first year and 
 20.28  $4,925,000 the second year are to the 
 20.29  commissioner of revenue for state aid 
 20.30  to amortize the unfunded liability of 
 20.31  local police and salaried firefighters 
 20.32  relief associations under Minnesota 
 20.33  Statutes, section 423A.02. 
 20.34  $1,000,000 the first year and 
 20.35  $1,000,000 the second year are to the 
 20.36  commissioner of revenue for 
 20.37  supplemental state aid to amortize the 
 20.38  unfunded liability of local police and 
 20.39  salaried firefighters relief 
 20.40  associations under Minnesota Statutes, 
 20.41  section 423A.02, subdivision 1a. 
 20.42  $420,000 the first year and $420,000 
 20.43  the second year are to the commissioner 
 20.44  of revenue to pay reimbursements to 
 20.45  relief associations for firefighter 
 20.46  supplemental benefits paid under 
 20.47  Minnesota Statutes, section 424A.10. 
 20.48  Sec. 30.  BOARD OF GOVERNMENT 
 20.49  INNOVATION AND COOPERATION               512,000        518,000
 20.50  Sec. 31.  STATE LOTTERY                  750,000          -0-   
 20.51  $750,000 is from the lottery prize fund 
 20.52  to the commissioner of human services 
 21.1   for a grant to reconstruct Project 
 21.2   Turnabout in Granite Falls destroyed by 
 21.3   the Granite Falls tornado.  This 
 21.4   appropriation is available until June 
 21.5   30, 2003, and does not become part of 
 21.6   the base. 
 21.7   Sec. 32.  AMATEUR SPORTS
 21.8   COMMISSION                             1,257,000        677,000 
 21.9   $475,000 the first year is for making 
 21.10  matching grants for after school 
 21.11  enrichment grants as provided under 
 21.12  Minnesota Statutes, section 240A.12.  
 21.13  $25,000 is for a grant to the Range 
 21.14  Recreation Civic Center for bleacher 
 21.15  purchase. 
 21.16  $100,000 in fiscal year 2002 is for a 
 21.17  one-time grant to a nonprofit 
 21.18  corporation for operation of a shooting 
 21.19  sports program at a state-owned 
 21.20  facility.  The program funded through 
 21.21  this grant must be designed to train 
 21.22  participants and coaches in shooting 
 21.23  sports that are Olympic events.  This 
 21.24  appropriation is available until June 
 21.25  30, 2003. 
 21.26  Sec. 33.  GENERAL CONTINGENT 
 21.27  ACCOUNTS                               3,500,000      3,500,000
 21.28                Summary by Fund
 21.29  General               3,000,000     3,000,000
 21.30  State Government
 21.31  Special Revenue         400,000       400,000
 21.32  Workers'
 21.33  Compensation            100,000       100,000
 21.34  The appropriations in this section may 
 21.35  only be spent with the approval of the 
 21.36  governor after consultation with the 
 21.37  legislative advisory commission 
 21.38  pursuant to Minnesota Statutes, section 
 21.39  3.30. 
 21.40  If an appropriation in this section for 
 21.41  either year is insufficient, the 
 21.42  appropriation for the other year is 
 21.43  available for it.  
 21.44  The special revenue appropriation is 
 21.45  available to be transferred to the 
 21.46  attorney general when the costs to 
 21.47  provide legal services to the health 
 21.48  boards exceed the biennial 
 21.49  appropriation to the attorney general 
 21.50  from the special revenue fund and for 
 21.51  transfer to the health boards if 
 21.52  required for unforeseen expenditures of 
 21.53  an emergency nature.  The boards 
 21.54  receiving the additional services or 
 21.55  supplemental appropriations shall set 
 21.56  their fees to cover the costs. 
 21.57     Sec. 34.  [EFFECTIVE DATE.] 
 22.1      The appropriations for fiscal year 2001 are effective the 
 22.2   day following final enactment and are available until December 
 22.3   31, 2001.  All other appropriations are effective July 1, 2001. 
 22.4                              ARTICLE 2 
 22.5                     STATE GOVERNMENT OPERATIONS 
 22.6      Section 1.  Minnesota Statutes 2000, section 3.3005, 
 22.7   subdivision 2, is amended to read: 
 22.8      Subd. 2.  [GOVERNOR'S REQUEST TO LEGISLATURE.] A state 
 22.9   agency shall not expend money received by it under federal law 
 22.10  for any purpose unless a request to spend federal money from 
 22.11  that source for that purpose in that fiscal year has been 
 22.12  submitted by the governor to the legislature as a part of a 
 22.13  budget request submitted during or within ten days before the 
 22.14  start of a regular legislative session, or unless specifically 
 22.15  authorized by law or as provided by this section.  A budget 
 22.16  request submitted to the legislature according to this 
 22.17  subdivision must be submitted at least 20 days before the 
 22.18  deadline set by the legislature for legislative budget 
 22.19  committees to act on finance bills.  
 22.20     Sec. 2.  Minnesota Statutes 2000, section 3.3005, 
 22.21  subdivision 3, is amended to read: 
 22.22     Subd. 3.  [STATE MATCH.] If a request to spend federal 
 22.23  money is included in the governor's budget or spending the money 
 22.24  is authorized by law but the amount of federal money received 
 22.25  requires a state match greater than that included in the budget 
 22.26  request or authorized by law, the amount that requires an 
 22.27  additional state match may be allotted for expenditure after the 
 22.28  requirements of subdivision 5 or 6 are met. 
 22.29     Sec. 3.  Minnesota Statutes 2000, section 3.3005, 
 22.30  subdivision 3a, is amended to read: 
 22.31     Subd. 3a.  [CHANGE IN PURPOSE.] If a request to spend 
 22.32  federal money is included in a governor's budget request and 
 22.33  approved according to subdivision 2a, but the purpose for which 
 22.34  the money is to be used changes from the time of the request and 
 22.35  approval, the amount may be allotted for expenditure after a 
 22.36  revised request is submitted according to subdivision 2 or the 
 23.1   requirements of subdivision 5 or 6 are met. 
 23.2      Sec. 4.  Minnesota Statutes 2000, section 3.3005, is 
 23.3   amended by adding a subdivision to read: 
 23.4      Subd. 3b.  [INCREASE IN AMOUNT.] If a request to spend 
 23.5   federal money is included in a governor's budget request and 
 23.6   approved according to subdivision 2 or 5 and the amount of money 
 23.7   available increases after the request is made and authorized, 
 23.8   the additional amount may be allotted for expenditure after a 
 23.9   revised request is submitted according to subdivision 2, or the 
 23.10  requirements of subdivision 5 or 6 are met. 
 23.11     Sec. 5.  Minnesota Statutes 2000, section 3.3005, 
 23.12  subdivision 4, is amended to read: 
 23.13     Subd. 4.  [INTERIM PROCEDURES; URGENCIES.] If federal money 
 23.14  becomes available to the state for expenditure after the 
 23.15  deadline in subdivision 2 or while the legislature is not in 
 23.16  session, and the availability of money from that source or for 
 23.17  that purpose or in that fiscal year could not reasonably have 
 23.18  been anticipated and included in the governor's budget request, 
 23.19  and an urgency requires that all or part of the money be 
 23.20  allotted before the legislature reconvenes or prior to the end 
 23.21  of the 20-day period specified in subdivision 2, it may be 
 23.22  allotted to a state agency after the requirements of subdivision 
 23.23  5 are met. 
 23.24     Sec. 6.  Minnesota Statutes 2000, section 3.3005, 
 23.25  subdivision 5, is amended to read: 
 23.26     Subd. 5.  [LEGISLATIVE ADVISORY COMMISSION REVIEW.] Federal 
 23.27  money that becomes available under ~~subdivisions~~ subdivision 3 
 23.28  ~~and~~, 3a, 3b, or 4 may be allotted after the commissioner of 
 23.29  finance has submitted the request to the members of the 
 23.30  legislative advisory commission for their review and 
 23.31  recommendation for further review.  If a recommendation is not 
 23.32  made within ten days, no further review by the legislative 
 23.33  advisory commission is required, and the commissioner shall 
 23.34  approve or disapprove the request.  If a recommendation by any 
 23.35  member is for further review the governor shall submit the 
 23.36  request to the legislative advisory commission for its review 
 24.1   and recommendation.  Failure or refusal of the commission to 
 24.2   make a recommendation promptly is a negative recommendation.  
 24.3      Sec. 7.  Minnesota Statutes 2000, section 3.3005, is 
 24.4   amended by adding a subdivision to read: 
 24.5      Subd. 6.  [INTERIM PROCEDURES; NONURGENCIES.] If federal 
 24.6   money becomes available to the state for expenditure after the 
 24.7   deadline in subdivision 2 or while the legislature is not in 
 24.8   session, and subdivision 4 does not apply, a request to expend 
 24.9   the federal money may be submitted by the commissioner of 
 24.10  finance to members of the legislative advisory commission for 
 24.11  their review and recommendation.  This request must be submitted 
 24.12  by October 1 of any year.  If any member of the commission makes 
 24.13  a negative recommendation or a recommendation for further review 
 24.14  on a request by October 20 of the same year, the commissioner 
 24.15  shall not approve expenditure of that federal money.  If a 
 24.16  request to expend federal money submitted under this subdivision 
 24.17  receives a negative recommendation or a recommendation for 
 24.18  further review, the request may be submitted again under 
 24.19  subdivision 2.  If the members of the commission make a positive 
 24.20  recommendation or no recommendation, the commissioner shall 
 24.21  approve or disapprove the request and the federal money may be 
 24.22  allotted for expenditure.  
 24.23     Sec. 8.  Minnesota Statutes 2000, section 3.85, subdivision 
 24.24  3, is amended to read: 
 24.25     Subd. 3.  [MEMBERSHIP.] The commission consists of five 
 24.26  members of the senate appointed by the subcommittee on 
 24.27  committees of the committee on rules and administration and five 
 24.28  members of the house of representatives appointed by the 
 24.29  speaker.  Members shall be appointed at the commencement of each 
 24.30  regular session of the legislature for a two-year term beginning 
 24.31  January 16 of the first year of the regular session.  Members 
 24.32  continue to serve until their successors are appointed.  
 24.33  Vacancies that occur while the legislature is in session shall 
 24.34  be filled like regular appointments.  If the legislature is not 
 24.35  in session, senate vacancies shall be filled by the last 
 24.36  subcommittee on committees of the senate committee on rules and 
 25.1   administration or other appointing authority designated by the 
 25.2   senate rules, and house vacancies shall be filled by the last 
 25.3   speaker of the house, or if the speaker is not available, by the 
 25.4   last chair of the house rules committee. 
 25.5      Sec. 9.  Minnesota Statutes 2000, section 3.855, 
 25.6   subdivision 3, is amended to read: 
 25.7      Subd. 3.  [OTHER SALARIES AND COMPENSATION PLANS.] The 
 25.8   commission shall also: 
 25.9      (1) review and approve, reject, or modify a plan for 
 25.10  compensation and terms and conditions of employment prepared and 
 25.11  submitted by the commissioner of employee relations under 
 25.12  section 43A.18, subdivision 2, covering all state employees who 
 25.13  are not represented by an exclusive bargaining representative 
 25.14  and whose compensation is not provided for by chapter 43A or 
 25.15  other law; 
 25.16     (2) review and approve, reject, or modify a plan for total 
 25.17  compensation and terms and conditions of employment for 
 25.18  employees in positions identified as being managerial under 
 25.19  section 43A.18, subdivision 3, whose salaries and benefits are 
 25.20  not otherwise provided for in law or other plans established 
 25.21  under chapter 43A; 
 25.22     (3) review and approve, reject, or modify recommendations 
 25.23  for salaries submitted by the governor or other appointing 
 25.24  authority under section ~~43A.18~~ 15A.0815, subdivision 5, covering 
 25.25  agency head positions listed in section 15A.0815; 
 25.26     (4) review and approve, reject, or modify recommendations 
 25.27  for salaries of officials of higher education systems under 
 25.28  section 15A.081, ~~subdivision~~ subdivisions 7b and 7c; and 
 25.29     (5) review and approve, reject, or modify plans for 
 25.30  compensation, terms, and conditions of employment proposed under 
 25.31  section 43A.18, subdivisions 3a and 4. 
 25.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 25.33  following final enactment. 
 25.34     Sec. 10.  Minnesota Statutes 2000, section 3.97, 
 25.35  subdivision 3a, is amended to read: 
 25.36     Subd. 3a.  [EVALUATION TOPICS.] (a) The commission shall 
 26.1   periodically select topics for the legislative auditor to 
 26.2   evaluate.  Topics may include any agency, program, or activity 
 26.3   established by law to achieve a state purpose, or any topic that 
 26.4   affects the operation of state government, but the commission 
 26.5   shall give primary consideration to topics that are likely, upon 
 26.6   examination, to produce recommendations for cost savings, 
 26.7   increased productivity, or the elimination of duplication among 
 26.8   public agencies.  Legislators and legislative committees may 
 26.9   suggest topics for evaluation, but the legislative auditor shall 
 26.10  only conduct evaluations approved by the commission. 
 26.11     (b) The commission is requested to direct the auditor, in 
 26.12  response to a suggestion from an individual legislator of an 
 26.13  evaluation topic, to estimate the scope of the proposed 
 26.14  evaluation and the time required to complete it.  The estimate 
 26.15  must be reported to the legislator who submitted the suggestion 
 26.16  and to the commission.  The commission must determine within 60 
 26.17  days of receiving the estimate whether to proceed with the 
 26.18  suggested evaluation and must convey its decision to the 
 26.19  legislator along with the reasons for its decision. 
 26.20     Sec. 11.  Minnesota Statutes 2000, section 3.979, is 
 26.21  amended by adding a subdivision to read: 
 26.22     Subd. 5.  [COMMISSIONER'S OPINION; LEGISLATIVE AUDITOR 
 26.23  ACCESS TO DATA.] If, after the commissioner of administration 
 26.24  issues an opinion under section 13.072 that a person requesting 
 26.25  access to data held by a state agency is entitled to that 
 26.26  access, the state agency continues to refuse to provide the data 
 26.27  or the person making the request is told that the data sought 
 26.28  does not exist, the legislative audit commission may instruct 
 26.29  the legislative auditor to review all state agency data related 
 26.30  to the request.  Following the review, the legislative auditor 
 26.31  shall provide all public data obtained, if any, to the 
 26.32  legislative audit commission. 
 26.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
 26.34  and applies to commissioner's opinions issued after that date. 
 26.35     Sec. 12.  Minnesota Statutes 2000, section 3.98, 
 26.36  subdivision 2, is amended to read: 
 27.1      Subd. 2.  [CONTENTS.] (a) The fiscal note, where possible, 
 27.2   shall: 
 27.3      (1) cite the effect in dollar amounts; 
 27.4      (2) cite the statutory provisions affected; 
 27.5      (3) estimate the increase or decrease in revenues or 
 27.6   expenditures; 
 27.7      (4) include the costs which may be absorbed without 
 27.8   additional funds; ~~and~~ 
 27.9      (5) include the assumptions used in determining the cost 
 27.10  estimates; and 
 27.11     (6) specify any long-range implication. 
 27.12     (b) The fiscal note may comment on technical or mechanical 
 27.13  defects in the bill but shall express no opinions concerning the 
 27.14  merits of the proposal. 
 27.15     Sec. 13.  [3.99] [LEGISLATIVE COMMISSION ON METROPOLITAN 
 27.16  GOVERNMENT.] 
 27.17     Subdivision 1.  [ESTABLISHED.] The legislative commission 
 27.18  on metropolitan government is established to oversee the 
 27.19  metropolitan council's operating and capital budgets, work 
 27.20  program, and capital improvement program. 
 27.21     Subd. 2.  [MEMBERSHIP.] The commission consists of four 
 27.22  senators appointed by the senate subcommittee on committees of 
 27.23  the committee on rules and administration, three senators 
 27.24  appointed by the senate minority leader, four state 
 27.25  representatives appointed by the speaker of the house, and three 
 27.26  state representatives appointed by the house minority leader. 
 27.27  All members must reside in or represent a portion of the 
 27.28  seven-county metropolitan area.  The appointing authorities must 
 27.29  ensure balanced geographic representation.  Each appointing 
 27.30  authority must make appointments as soon as possible after the 
 27.31  opening of the next regular session of the legislature in each 
 27.32  odd-numbered year. 
 27.33     Subd. 3.  [TERMS; VACANCIES.] Members of the commission 
 27.34  serve for a two-year term beginning upon appointment and 
 27.35  expiring upon appointment of a successor after the opening of 
 27.36  the next regular session of the legislature in the odd-numbered 
 28.1   year.  A vacancy in the membership of the commission must be 
 28.2   filled for the unexpired term in a manner that will preserve the 
 28.3   representation established by this section. 
 28.4      Subd. 4.  [CHAIR.] The commission must meet as soon as 
 28.5   practicable after members are appointed in each odd-numbered 
 28.6   year to elect its chair and other officers as it may determine 
 28.7   necessary.  A chair serves a two-year term, expiring in the 
 28.8   odd-numbered year after a successor is elected.  The chair must 
 28.9   alternate biennially between the senate and the house. 
 28.10     Subd. 5.  [COMPENSATION.] Members serve without 
 28.11  compensation but may be reimbursed for their reasonable expenses 
 28.12  as members of the legislature. 
 28.13     Subd. 6.  [STAFF.] Legislative staff must provide 
 28.14  administrative and research assistance to the commission. 
 28.15     Subd. 7.  [MEETINGS; PROCEDURES.] The commission meets at 
 28.16  the call of the chair.  If there is a quorum, the commission may 
 28.17  take action by a simple majority vote of commission members 
 28.18  present. 
 28.19     Subd. 8.  [POWERS; DUTIES; METROPOLITAN COUNCIL LEVY, 
 28.20  BUDGET OVERSIGHT.] The commission must monitor, review, and make 
 28.21  recommendations to the metropolitan council and to the 
 28.22  legislature for the following calendar year on: 
 28.23     (1) the tax rate and dollar amount of the metropolitan 
 28.24  council's property tax levies and any proposed increases in the 
 28.25  rate or dollar amount of tax; 
 28.26     (2) any request for an increase in the debt of the 
 28.27  metropolitan council; 
 28.28     (3) the overall work and role of the metropolitan council; 
 28.29     (4) the metropolitan council's proposed operating and 
 28.30  capital budgets, work program, and capital improvement program; 
 28.31  and 
 28.32     (5) the metropolitan council's implementation of the 
 28.33  operating and capital budgets, work program, and capital 
 28.34  improvement program. 
 28.35     Subd. 9.  [POWERS; DUTIES; METROPOLITAN COUNCIL 
 28.36  APPOINTMENTS OVERSIGHT.] The commission must monitor 
 29.1   appointments to the metropolitan council and may make 
 29.2   recommendations on appointments to the nominating committee 
 29.3   under section 473.123, subdivision 3, or to the governor before 
 29.4   the governor makes the appointments.  The commission may also 
 29.5   make recommendations to the senate before appointments are 
 29.6   presented to the senate for its advice and consent. 
 29.7      Sec. 14.  [4A.055] [COMMISSION ON THE ECONOMIC STATUS OF 
 29.8   WOMEN.] 
 29.9      The director must provide staff, office space, and 
 29.10  administrative support for the commission on the economic status 
 29.11  of women. 
 29.12     Sec. 15.  Minnesota Statutes 2000, section 7.09, 
 29.13  subdivision 1, is amended to read: 
 29.14     Subdivision 1.  [PROCEDURE.] The state treasurer is 
 29.15  authorized to receive and accept, on behalf of the state, any 
 29.16  gift, bequest, devise, or endowment which may be made by any 
 29.17  person, by will, deed, gift, or otherwise, to or for the benefit 
 29.18  of the state, or any of its departments or agencies, or to or in 
 29.19  aid, or for the benefit, support, or maintenance of any 
 29.20  educational, charitable, or other institution maintained in 
 29.21  whole or in part by the state, or for the benefit of students, 
 29.22  employees, or inmates thereof, or for any proper state purpose 
 29.23  or function, and the money, property, or funds constituting such 
 29.24  gift, bequest, devise, or endowment.  No such gift, bequest, 
 29.25  devise, or endowment ~~whose value is equal to or exceeds $10,000~~ 
 29.26  shall be so accepted unless ~~the commissioner of finance and~~ the 
 29.27  state treasurer ~~determine~~ determines that it is for the interest 
 29.28  of the state to accept it, and approve of and direct the 
 29.29  acceptance.  ~~If the value is less than $10,000, only the state~~ 
 29.30  ~~treasurer need determine that it is for the interest of the~~ 
 29.31  ~~state to accept it, and approve of and direct the~~ 
 29.32  ~~acceptance.~~  If a gift, bequest, devise, or endowment is money 
 29.33  or other negotiable instruments, then the deposit of it does not 
 29.34  constitute acceptance.  In the event that the money or other 
 29.35  negotiable instruments are deposited but not approved, the 
 29.36  amount deposited must be refunded.  When, in order to effect the 
 30.1   purpose for which any gift, bequest, devise, or endowment has 
 30.2   been accepted, it is necessary to sell property so received, the 
 30.3   state treasurer, upon request of the authority in charge of the 
 30.4   agency, department, or institution concerned, may sell it at a 
 30.5   price which shall be fixed by the state board of investment. 
 30.6      Sec. 16.  Minnesota Statutes 2000, section 15.0575, 
 30.7   subdivision 3, as amended by Laws 2001, chapter 61, section 1, 
 30.8   is amended to read: 
 30.9      Subd. 3.  [COMPENSATION.] (a) Members of the boards may be 
 30.10  compensated at the rate of $55 a day spent on board activities, 
 30.11  when authorized by the board, plus expenses in the same manner 
 30.12  and amount as authorized by the commissioner's plan adopted 
 30.13  under section 43A.18, subdivision 2.  Members who, as a result 
 30.14  of time spent attending board meetings, incur child care 
 30.15  expenses that would not otherwise have been incurred, may be 
 30.16  reimbursed for those expenses upon board authorization.  
 30.17     (b) Members who are state employees or employees of the 
 30.18  political subdivisions of the state must not receive the daily 
 30.19  payment for activities that occur during working hours for which 
 30.20  they are compensated by the state or political subdivision.  
 30.21  However, a state or political subdivision employee may receive 
 30.22  the daily payment if the employee uses vacation time or 
 30.23  compensatory time accumulated in accordance with a collective 
 30.24  bargaining agreement or compensation plan for board activities.  
 30.25  Members who are state employees or employees of the political 
 30.26  subdivisions of the state may receive the expenses provided for 
 30.27  in this subdivision unless the expenses are reimbursed by 
 30.28  another source.  Members who are state employees or employees of 
 30.29  political subdivisions of the state may be reimbursed for child 
 30.30  care expenses only for time spent on board activities that are 
 30.31  outside their working hours. 
 30.32     (c) Each board must adopt internal standards prescribing 
 30.33  what constitutes a day spent on board activities for purposes of 
 30.34  making daily payments under this subdivision. 
 30.35     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
 30.36  and applies to service on or after that date. 
 31.1      Sec. 17.  Minnesota Statutes 2000, section 15.059, 
 31.2   subdivision 3, as amended by Laws 2001, chapter 61, section 2, 
 31.3   is amended to read: 
 31.4      Subd. 3.  [COMPENSATION.] (a) Members of the advisory 
 31.5   councils and committees may be compensated at the rate of $55 a 
 31.6   day spent on council or committee activities, when authorized by 
 31.7   the council or committee, plus expenses in the same manner and 
 31.8   amount as authorized by the commissioner's plan adopted under 
 31.9   section 43A.18, subdivision 2.  Members who, as a result of time 
 31.10  spent attending council or committee meetings, incur child care 
 31.11  expenses that would not otherwise have been incurred, may be 
 31.12  reimbursed for those expenses upon council or committee 
 31.13  authorization.  
 31.14     (b) Members who are state employees or employees of 
 31.15  political subdivisions must not receive the daily compensation 
 31.16  for activities that occur during working hours for which they 
 31.17  are compensated by the state or political subdivision.  However, 
 31.18  a state or political subdivision employee may receive the daily 
 31.19  payment if the employee uses vacation time or compensatory time 
 31.20  accumulated in accordance with a collective bargaining agreement 
 31.21  or compensation plan for council or committee activity.  Members 
 31.22  who are state employees or employees of the political 
 31.23  subdivisions of the state may receive the expenses provided for 
 31.24  in this section unless the expenses are reimbursed by another 
 31.25  source.  Members who are state employees or employees of 
 31.26  political subdivisions of the state may be reimbursed for child 
 31.27  care expenses only for time spent on board activities that are 
 31.28  outside their working hours. 
 31.29     (c) Each council and committee must adopt internal 
 31.30  standards prescribing what constitutes a day spent on council or 
 31.31  committee activities for purposes of making daily payments under 
 31.32  this subdivision. 
 31.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
 31.34  and applies to service on or after that date. 
 31.35     Sec. 18.  Minnesota Statutes 2000, section 15A.0815, 
 31.36  subdivision 1, is amended to read: 
 32.1      Subdivision 1.  [SALARY LIMITS.] The governor or other 
 32.2   appropriate appointing authority shall set the salary rates for 
 32.3   positions listed in this section within the salary limits listed 
 32.4   in subdivisions 2 to 4, subject to approval of the legislative 
 32.5   coordinating commission and the legislature as provided 
 32.6   by subdivision 5 and sections 3.855~~,~~ and 15A.081, subdivision 7b 
 32.7   ~~, and 43A.18, subdivision 5~~. 
 32.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 32.9   following final enactment. 
 32.10     Sec. 19.  Minnesota Statutes 2000, section 15A.0815, is 
 32.11  amended by adding a subdivision to read: 
 32.12     Subd. 5.  [APPOINTING AUTHORITIES TO RECOMMEND CERTAIN 
 32.13  SALARIES.] (a) The governor, or other appropriate appointing 
 32.14  authority, may submit to the legislative coordinating commission 
 32.15  recommendations for salaries within the salary limits for the 
 32.16  positions listed in subdivisions 2 to 4.  An appointing 
 32.17  authority may also propose additions or deletions of positions 
 32.18  from those listed. 
 32.19     (b) Before submitting the recommendations, the appointing 
 32.20  authority shall consult with the commissioner of employee 
 32.21  relations concerning the recommendations.  
 32.22     (c) In making recommendations, the appointing authority 
 32.23  shall consider the criteria established in section 43A.18, 
 32.24  subdivision 8, and the performance of individual incumbents.  
 32.25  The performance evaluation must include a review of an 
 32.26  incumbent's progress toward attainment of affirmative action 
 32.27  goals.  The appointing authority shall establish an objective 
 32.28  system for quantifying knowledge, abilities, duties, 
 32.29  responsibilities, and accountabilities, and in determining 
 32.30  recommendations, rate each position by this system. 
 32.31     (d) Before the appointing authority's recommended salaries 
 32.32  take effect, the recommendations must be reviewed and approved, 
 32.33  rejected, or modified by the legislative coordinating commission 
 32.34  and the legislature under section 3.855, subdivisions 2 and 3.  
 32.35  If, when the legislature is not in session, the commission fails 
 32.36  to reject or modify salary recommendations of the governor 
 33.1   within 30 calendar days of their receipt, the recommendations 
 33.2   are deemed to be approved. 
 33.3      (e) The appointing authority shall set the initial salary 
 33.4   of a head of a new agency or a chair of a new metropolitan board 
 33.5   or commission whose salary is not specifically prescribed by law 
 33.6   after consultation with the commissioner, whose recommendation 
 33.7   is advisory only.  The amount of the new salary must be 
 33.8   comparable to the salary of an agency head or commission chair 
 33.9   having similar duties and responsibilities. 
 33.10     (f) The salary of a newly appointed head of an agency or 
 33.11  chair of a metropolitan agency listed in subdivisions 2 to 4, 
 33.12  may be increased or decreased by the appointing authority from 
 33.13  the salary previously set for that position within 30 days of 
 33.14  the new appointment after consultation with the commissioner.  
 33.15  If the appointing authority increases a salary under this 
 33.16  paragraph, the appointing authority shall submit the new salary 
 33.17  to the legislative coordinating commission and the full 
 33.18  legislature for approval, modification, or rejection under 
 33.19  section 3.855, subdivisions 2 and 3.  If, when the legislature 
 33.20  is not in session, the commission fails to reject or modify 
 33.21  salary recommendations of the governor within 30 calendar days 
 33.22  of their receipt, the recommendations are deemed to be approved. 
 33.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 33.24  following final enactment. 
 33.25     Sec. 20.  Minnesota Statutes 2000, section 16A.06, is 
 33.26  amended by adding a subdivision to read: 
 33.27     Subd. 10.  [TECHNOLOGY BUDGET BOOK.] The department must 
 33.28  prepare a separate budget book containing all of the 
 33.29  administration's technology initiatives.  The book must be in 
 33.30  the same format as other biennial budget books. 
 33.31     Sec. 21.  Minnesota Statutes 2000, section 16A.10, is 
 33.32  amended by adding a subdivision to read: 
 33.33     Subd. 1c.  [PERFORMANCE MEASURES FOR CHANGE ITEMS.] For 
 33.34  each change item in the budget proposal requesting new or 
 33.35  increased funding, the budget document must present proposed 
 33.36  performance measures that can be used to determine if the new or 
 34.1   increased funding is accomplishing its goals. 
 34.2      Sec. 22.  [16A.1286] [STATEWIDE SYSTEMS ACCOUNT.] 
 34.3      Subdivision 1.  [CONTINUATION.] The statewide systems 
 34.4   account is a separate account in the special revenue fund.  All 
 34.5   money resulting from billings for statewide systems services 
 34.6   must be deposited in the account.  For the purposes of this 
 34.7   section, statewide systems includes the state accounting system, 
 34.8   payroll system, human resources systems, procurement system, and 
 34.9   related information access systems. 
 34.10     Subd. 2.  [BILLING PROCEDURES.] The commissioner may bill 
 34.11  up to $7,520,000 in each fiscal year for statewide systems 
 34.12  services provided to state agencies, judicial branch agencies, 
 34.13  the University of Minnesota, the Minnesota state colleges and 
 34.14  universities, and other entities.  Billing must be based only on 
 34.15  usage of services relating to statewide systems provided by the 
 34.16  intertechnologies division.  Each agency shall transfer from 
 34.17  agency operating appropriations to the statewide systems account 
 34.18  the amount billed by the commissioner.  Billing policies and 
 34.19  procedures related to statewide systems services must be 
 34.20  developed by the commissioner in consultation with the 
 34.21  commissioners of employee relations and administration, the 
 34.22  University of Minnesota, and the Minnesota state colleges and 
 34.23  universities. 
 34.24     Subd. 3.  [APPROPRIATION.] Money transferred into the 
 34.25  account is appropriated to the commissioner to pay for statewide 
 34.26  systems services during the biennium in which it is appropriated.
 34.27     Subd. 4.  [SUPERSEDE.] This section supersedes section 
 34.28  8.31, subdivision 2c. 
 34.29     Subd. 5.  [EXPIRATION.] This section expires June 30, 2003. 
 34.30     Sec. 23.  [16A.151] [PROCEEDS OF LITIGATION OR SETTLEMENT.] 
 34.31     Subdivision 1.  [STATE FUNDS; GENERAL FUND.] (a) This 
 34.32  subdivision applies, notwithstanding any law to the contrary, 
 34.33  except as provided in subdivision 2. 
 34.34     (b) A state official may not commence, pursue, or settle 
 34.35  litigation, or settle a matter that could have resulted in 
 34.36  litigation, in a manner that would result in money being 
 35.1   distributed to a person or entity other than the state. 
 35.2      (c) Money recovered by a state official in litigation or in 
 35.3   settlement of a matter that could have resulted in litigation is 
 35.4   state money and must be deposited in the general fund. 
 35.5      Subd. 2.  [EXCEPTIONS.] (a) If a state official litigates 
 35.6   or settles a matter on behalf of specific injured persons or 
 35.7   entities, this section does not prohibit distribution of money 
 35.8   to the specific injured persons or entities on whose behalf the 
 35.9   litigation or settlement efforts were initiated.  If money 
 35.10  recovered on behalf of injured persons or entities cannot 
 35.11  reasonably be distributed to those persons or entities because 
 35.12  they cannot readily be located or identified or because the cost 
 35.13  of distributing the money would outweigh the benefit to the 
 35.14  persons or entities, the money must be paid into the general 
 35.15  fund.  
 35.16     (b) Money recovered on behalf of a fund in the state 
 35.17  treasury other than the general fund may be deposited in that 
 35.18  fund. 
 35.19     (c) This section does not prohibit a state official from 
 35.20  distributing money to a person or entity other than the state in 
 35.21  litigation or potential litigation in which the state is a 
 35.22  defendant or potential defendant. 
 35.23     Subd. 3.  [DEFINITIONS.] For purposes of this section: 
 35.24     (1) "litigation" includes civil, criminal, and 
 35.25  administrative actions; 
 35.26     (2) "money recovered" includes actual damages, punitive or 
 35.27  exemplary damages, statutory damages, and civil and criminal 
 35.28  penalties; and 
 35.29     (3) "state official" means the attorney general, another 
 35.30  constitutional officer, an agency, or an agency employee, acting 
 35.31  in official capacity.  
 35.32     Sec. 24.  Minnesota Statutes 2000, section 16A.152, 
 35.33  subdivision 7, is amended to read: 
 35.34     Subd. 7.  [DELAY; REDUCTION.] The commissioner may delay 
 35.35  paying up to 15 percent of an appropriation to a special taxing 
 35.36  district or a system of higher education in that entity's fiscal 
 36.1   year for up to 60 days after the start of its next fiscal year.  
 36.2   The delayed amount is subject to allotment reduction under 
 36.3   subdivision ~~1~~ 4. 
 36.4      Sec. 25.  Minnesota Statutes 2000, section 16B.25, 
 36.5   subdivision 2, is amended to read: 
 36.6      Subd. 2.  [NOTICE.] Lost or abandoned property found on 
 36.7   state lands is placed in the custody of the commissioner.  If 
 36.8   the rightful owner is known, the owner must be notified by 
 36.9   certified mail and may reclaim the property on paying the 
 36.10  expenses of the search.  ~~If the owner is unknown, the~~ 
 36.11  ~~commissioner must give two weeks' published notice in the county~~ 
 36.12  ~~where the property was found.  Within six months following~~ 
 36.13  ~~publication, the rightful owner may receive the property on~~ 
 36.14  ~~paying the search expenses.~~  
 36.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 36.16  following final enactment. 
 36.17     Sec. 26.  Minnesota Statutes 2000, section 16B.60, 
 36.18  subdivision 3, is amended to read: 
 36.19     Subd. 3.  [MUNICIPALITY.] "Municipality" means a city, 
 36.20  county, or town ~~meeting the requirements of section 368.01,~~ 
 36.21  ~~subdivision 1~~, the University of Minnesota, or the state for 
 36.22  public buildings and state licensed facilities.  
 36.23     Sec. 27.  Minnesota Statutes 2000, section 16B.60, is 
 36.24  amended by adding a subdivision to read: 
 36.25     Subd. 12.  [DESIGNATE.] "Designate" means the formal 
 36.26  designation by a municipality's administrative authority of a 
 36.27  certified building official accepting responsibility for code 
 36.28  administration. 
 36.29     Sec. 28.  Minnesota Statutes 2000, section 16B.60, is 
 36.30  amended by adding a subdivision to read: 
 36.31     Subd. 13.  [ADMINISTRATIVE AUTHORITY.] "Administrative 
 36.32  authority" means a municipality's governing body or their 
 36.33  assigned administrative authority. 
 36.34     Sec. 29.  Minnesota Statutes 2000, section 16B.61, 
 36.35  subdivision 1, as amended by Laws 2001, chapter 207, section 1, 
 36.36  is amended to read: 
 37.1      Subdivision 1.  [ADOPTION OF CODE.] Subject to sections 
 37.2   16B.59 to 16B.75, the commissioner shall by rule establish a 
 37.3   code of standards for the construction, reconstruction, 
 37.4   alteration, and repair of buildings, governing matters of 
 37.5   structural materials, design and construction, fire protection, 
 37.6   health, sanitation, and safety, including design and 
 37.7   construction standards regarding heat loss control, 
 37.8   illumination, and climate control.  The code must also include 
 37.9   duties and responsibilities for code administration, including 
 37.10  procedures for administrative action, penalties, and suspension 
 37.11  and revocation of certification.  The code must conform insofar 
 37.12  as practicable to model building codes generally accepted and in 
 37.13  use throughout the United States, including a code for building 
 37.14  conservation.  In the preparation of the code, consideration 
 37.15  must be given to the existing statewide specialty codes 
 37.16  presently in use in the state.  Model codes with necessary 
 37.17  modifications and statewide specialty codes may be adopted by 
 37.18  reference.  The code must be based on the application of 
 37.19  scientific principles, approved tests, and professional 
 37.20  judgment.  To the extent possible, the code must be adopted in 
 37.21  terms of desired results instead of the means of achieving those 
 37.22  results, avoiding wherever possible the incorporation of 
 37.23  specifications of particular methods or materials.  To that end 
 37.24  the code must encourage the use of new methods and new 
 37.25  materials.  Except as otherwise provided in sections 16B.59 to 
 37.26  16B.75, the commissioner shall administer and enforce the 
 37.27  provisions of those sections. 
 37.28     The commissioner shall develop rules addressing the plan 
 37.29  review fee assessed to similar buildings without significant 
 37.30  modifications including provisions for use of building systems 
 37.31  as specified in the industrial/modular program specified in 
 37.32  section 16B.75.  Additional plan review fees associated with 
 37.33  similar plans must be based on costs commensurate with the 
 37.34  direct and indirect costs of the service. 
 37.35     Sec. 30.  Minnesota Statutes 2000, section 16B.65, is 
 37.36  amended to read: 
 38.1      16B.65 [BUILDING OFFICIALS.] 
 38.2      Subdivision 1.  [~~APPOINTMENTS~~ DESIGNATION.] ~~The governing~~ 
 38.3   ~~body of~~ By January 1, 2002, each municipality shall~~, unless~~ 
 38.4   ~~other means are already provided, appoint~~ designate a building 
 38.5   official to administer the code.  A municipality may designate 
 38.6   no more than one building official responsible for code 
 38.7   administration defined by each certification category 
 38.8   established in rule.  Two or more municipalities may combine in 
 38.9   the ~~appointment~~ designation of a ~~single~~ building official for 
 38.10  the purpose of administering the provisions of the code within 
 38.11  their communities.  In those municipalities for which no 
 38.12  building officials have been ~~appointed~~ designated, the state 
 38.13  building official~~, with the approval of the commissioner, may~~ 
 38.14  ~~appoint building officials to serve until the municipalities~~ 
 38.15  ~~have made an appointment.  If unable to make an appointment, the~~ 
 38.16  ~~state building official~~ may use whichever state employees ~~or~~ 
 38.17  ~~state agencies~~ are necessary to perform the duties of the 
 38.18  building official until the municipality makes a temporary or 
 38.19  permanent designation.  All costs incurred by virtue of ~~an~~ 
 38.20  ~~appointment by the state building official or~~ these services 
 38.21  rendered by state employees must be borne by the involved 
 38.22  municipality~~.~~ and receipts arising from ~~the appointment~~ these 
 38.23  services must be paid into the state treasury and credited to 
 38.24  the ~~special revenue~~ general fund.  
 38.25     Subd. 2.  [QUALIFICATIONS.] A building official, to be 
 38.26  eligible for ~~appointment~~ designation, must be certified and have 
 38.27  the experience in design, construction, and supervision which 
 38.28  the commissioner deems necessary and must be generally informed 
 38.29  on the quality and strength of building materials, accepted 
 38.30  building construction requirements, and the nature of equipment 
 38.31  and needs conducive to the safety, comfort, and convenience of 
 38.32  building occupants.  ~~Each building official must be certified~~ 
 38.33  ~~under this section, except that the qualifications outlined in~~ 
 38.34  ~~this section are not mandatory regarding any building official~~ 
 38.35  ~~in any municipality engaged in the administration of a building~~ 
 38.36  ~~code on May 27, 1971, and continuing that function through July~~ 
 39.1   ~~1, 1972~~ No person may be designated as a building official for a 
 39.2   municipality unless the commissioner determines that the 
 39.3   official is qualified as provided in subdivision 3.  
 39.4      Subd. 3.  [CERTIFICATION.] The commissioner shall:  
 39.5      (1) prepare and conduct written and practical examinations 
 39.6   to determine if a person is qualified pursuant to subdivision 2 
 39.7   to be a building official; 
 39.8      (2) accept documentation of successful completion of 
 39.9   testing programs developed by nationally recognized testing 
 39.10  agencies, as proof of qualification pursuant to subdivision 2; 
 39.11  or 
 39.12     (3) determine qualifications by both clauses (1) and (2).  
 39.13     Upon a determination of qualification under clause (1), 
 39.14  (2), or both of them, the commissioner shall issue a certificate 
 39.15  to the building official stating that the official is 
 39.16  certified.  Each person applying for examination and 
 39.17  certification pursuant to this section shall pay a nonrefundable 
 39.18  fee of $70.  The commissioner or a designee may establish 
 39.19  ~~classes~~ categories of certification that will recognize the 
 39.20  varying complexities of code enforcement in the municipalities 
 39.21  within the state.  ~~Except as provided by subdivision 2, no~~ 
 39.22  ~~person may act as a building official for a municipality unless~~ 
 39.23  ~~the commissioner determines that the official is qualified.~~  The 
 39.24  commissioner shall provide educational programs designed to 
 39.25  train and assist building officials in carrying out their 
 39.26  responsibilities. 
 39.27     The department of employee relations may, at the request of 
 39.28  the commissioner, provide statewide testing services. 
 39.29     Subd. 4.  [DUTIES.] Building officials shall, in the 
 39.30  municipality for which they are ~~appointed~~ designated, ~~attend to~~ 
 39.31  be responsible for all aspects of code administration for which 
 39.32  they are certified, including the issuance of all building 
 39.33  permits and the inspection of all manufactured home 
 39.34  installations.  The commissioner may direct a municipality with 
 39.35  a building official to perform services for another 
 39.36  municipality, and in that event the municipality being served 
 40.1   shall pay the municipality rendering the services the reasonable 
 40.2   costs of the services.  The costs may be subject to approval by 
 40.3   the commissioner.  
 40.4      Subd. 5.  [~~REMOVAL FROM OFFICE~~ OVERSIGHT COMMITTEE.] ~~Except~~ 
 40.5   ~~as otherwise provided for by law the commissioner may, upon~~ 
 40.6   ~~notice and hearing, direct the dismissal of a building official~~ 
 40.7   ~~when it appears to the commissioner by competent evidence that~~ 
 40.8   ~~the building official has consistently failed to act in the~~ 
 40.9   ~~public interest in the performance of duties.  Notice must be~~ 
 40.10  ~~provided and the hearing conducted in accordance with the~~ 
 40.11  ~~provisions of chapter 14 governing contested case proceedings.~~  
 40.12  ~~Nothing in this subdivision limits or otherwise affects the~~ 
 40.13  ~~authority of a municipality to dismiss or suspend a building~~ 
 40.14  ~~official at its discretion, except as otherwise provided for by~~ 
 40.15  ~~law.~~  (a) The commissioner shall establish a code administration 
 40.16  oversight committee to evaluate, mediate, and recommend to the 
 40.17  commissioner any administrative action, penalty, suspension, or 
 40.18  revocation with respect to complaints filed with or information 
 40.19  received by the commissioner alleging or indicating the 
 40.20  unauthorized performance of official duties or unauthorized use 
 40.21  of the title certified building official, or a violation of 
 40.22  statute, rule, or order that the commissioner has issued or is 
 40.23  empowered to enforce.  The committee consists of five certified 
 40.24  building officials, at least two of whom must be from 
 40.25  nonmetropolitan counties.  Committee members must be compensated 
 40.26  according to section 15.059, subdivision 3.  The commissioner's 
 40.27  designee shall act as an ex-officio member of the oversight 
 40.28  committee.  
 40.29     (b) If the commissioner has a reasonable basis to believe 
 40.30  that a person has engaged in an act or practice constituting the 
 40.31  unauthorized performance of official duties, the unauthorized 
 40.32  use of the title certified building official, or a violation of 
 40.33  a statute, rule, or order that the commissioner has issued or is 
 40.34  empowered to enforce, the commissioner may proceed with 
 40.35  administrative actions or penalties as described in subdivision 
 40.36  5a or suspension or revocation as described in subdivision 5b.  
 41.1      Subd. 5a.  [ADMINISTRATIVE ACTION AND PENALTIES.] The 
 41.2   commissioner shall, by rule, establish a graduated schedule of 
 41.3   administrative actions for violations of sections 16B.59 to 
 41.4   16B.75 and rules adopted under those sections.  The schedule 
 41.5   must be based on and reflect the culpability, frequency, and 
 41.6   severity of the violator's actions.  The commissioner may impose 
 41.7   a penalty from the schedule on a certification holder for a 
 41.8   violation of sections 16B.59 to 16B.75 and rules adopted under 
 41.9   those sections.  The penalty is in addition to any criminal 
 41.10  penalty imposed for the same violation.  Administrative monetary 
 41.11  penalties imposed by the commissioner must be paid to the 
 41.12  general fund.  
 41.13     Subd. 5b.  [SUSPENSION; REVOCATION.] Except as otherwise 
 41.14  provided for by law, the commissioner may, upon notice and 
 41.15  hearing, revoke or suspend or refuse to issue or reissue a 
 41.16  building official certification if the applicant, building 
 41.17  official, or certification holder: 
 41.18     (1) violates a provision of sections 16B.59 to 16B.75 or a 
 41.19  rule adopted under those sections; 
 41.20     (2) engages in fraud, deceit, or misrepresentation while 
 41.21  performing the duties of a certified building official; 
 41.22     (3) makes a false statement in an application submitted to 
 41.23  the commissioner or in a document required to be submitted to 
 41.24  the commissioner; or 
 41.25     (4) violates an order of the commissioner.  
 41.26     Notice must be provided and the hearing conducted in 
 41.27  accordance with the provisions of chapter 14 governing contested 
 41.28  case proceedings.  Nothing in this subdivision limits or 
 41.29  otherwise affects the authority of a municipality to dismiss or 
 41.30  suspend a building official at its discretion, except as 
 41.31  otherwise provided for by law. 
 41.32     Subd. 6.  [VACANCIES.] In the event that a ~~certified~~ 
 41.33  designated building official ~~vacates that~~ position is vacant 
 41.34  within a municipality, that municipality shall ~~appoint~~ designate 
 41.35  a certified building official to fill the vacancy as soon as 
 41.36  possible.  The commissioner must be notified of any vacancy or 
 42.1   designation in writing within 15 days.  If the municipality 
 42.2   fails to ~~appoint~~ designate a certified building official within 
 42.3   ~~90~~ 15 days of the occurrence of the vacancy, the state building 
 42.4   official may ~~make the appointment or~~ provide state employees to 
 42.5   serve that function as provided in subdivision 1 until the 
 42.6   municipality makes a temporary or permanent designation.  
 42.7   Municipalities must not issue permits without a designated 
 42.8   certified building official.  
 42.9      Subd. 7.  [CONTINUING EDUCATION.] Subject to sections 
 42.10  16B.59 to 16B.75, the commissioner may by rule establish or 
 42.11  approve continuing education programs for municipal building 
 42.12  officials dealing with matters of building code administration, 
 42.13  inspection, and enforcement.  
 42.14     ~~Effective January 1, 1985,~~ Each person certified as a 
 42.15  building official for the state must satisfactorily complete 
 42.16  applicable educational programs established or approved by the 
 42.17  commissioner every three calendar years to retain certification. 
 42.18     Each person certified as a building official must submit in 
 42.19  writing to the commissioner an application for renewal of 
 42.20  certification within 60 days of the last day of the third 
 42.21  calendar year following the last certificate issued.  Each 
 42.22  application for renewal must be accompanied by proof of 
 42.23  satisfactory completion of minimum continuing education 
 42.24  requirements and the certification renewal fee established by 
 42.25  the commissioner.  
 42.26     ~~For persons certified prior to January 1, 1985, the first~~ 
 42.27  ~~three-year period commences January 1, 1985.~~ 
 42.28     Sec. 31.  Minnesota Statutes 2000, section 16B.70, is 
 42.29  amended by adding a subdivision to read: 
 42.30     Subd. 3.  [REVENUE TO EQUAL COSTS.] Revenue received from 
 42.31  the surcharge imposed in subdivision 1 should approximately 
 42.32  equal the cost, including the overhead cost, of administering 
 42.33  sections 16B.59 to 16B.75.  By November 30 each year, the 
 42.34  commissioner must report to the commissioner of finance and to 
 42.35  the legislature on changes in the surcharge imposed in 
 42.36  subdivision 1 needed to comply with this policy.  In making this 
 43.1   report, the commissioner must assume that the services 
 43.2   associated with administering sections 16B.59 to 16B.75 will 
 43.3   continue to be provided at the same level provided during the 
 43.4   fiscal year in which the report is made. 
 43.5      Sec. 32.  Minnesota Statutes 2000, section 16B.88, 
 43.6   subdivision 1, is amended to read: 
 43.7      Subdivision 1.  [INFORMATION CENTER FOR VOLUNTEER 
 43.8   PROGRAMS.] (a) The office of citizenship and volunteer services 
 43.9   is under the supervision and administration of a director 
 43.10  appointed by the ~~commissioner~~ governor.  The office shall:  (1) 
 43.11  operate as a state information, technical assistance, and 
 43.12  promotion center for volunteer programs; and (2) promote and 
 43.13  facilitate citizen participation in local governance and public 
 43.14  problem solving. 
 43.15     (b) In furtherance of the mission in paragraph (a), clause 
 43.16  (2), the office shall: 
 43.17     (1) engage in education and other activities designed to 
 43.18  enhance the capacity of citizens to solve problems affecting 
 43.19  their communities; 
 43.20     (2) promote and support efforts by citizens, 
 43.21  community-based organizations, nonprofits, churches, and local 
 43.22  governments to collaborate in solving community problems; 
 43.23     (3) encourage local governments to provide increased 
 43.24  opportunities for citizen involvement in public decision making 
 43.25  and public problem solving; 
 43.26     (4) refer innovative approaches to encourage greater public 
 43.27  access to and involvement in state and local government 
 43.28  decisions to appropriate state and local government officials; 
 43.29     (5) encourage units of state and local government to 
 43.30  respond to citizen initiatives and ideas; 
 43.31     (6) promote processes for involving citizens in government 
 43.32  decisions; and 
 43.33     (7) recognize and publicize models of effective public 
 43.34  problem solving by citizens. 
 43.35     Sec. 33.  Minnesota Statutes 2000, section 16C.02, is 
 43.36  amended by adding a subdivision to read: 
 44.1      Subd. 10a.  [ORGANIZATIONAL CONFLICT OF 
 44.2   INTEREST.] "Organizational conflict of interest" means that 
 44.3   because of existing or planned activities or because of 
 44.4   relationships with other persons: 
 44.5      (1) the vendor is unable or potentially unable to render 
 44.6   impartial assistance or advice to the state; 
 44.7      (2) the vendor's objectivity in performing the contract 
 44.8   work is or might be otherwise impaired; or 
 44.9      (3) the vendor has an unfair advantage. 
 44.10     Sec. 34.  Minnesota Statutes 2000, section 16C.03, 
 44.11  subdivision 2, is amended to read: 
 44.12     Subd. 2.  [RULEMAKING AUTHORITY.] Subject to chapter 14, 
 44.13  the commissioner may adopt rules, consistent with this chapter 
 44.14  and chapter 16B, relating to the following topics: 
 44.15     (1) solicitations and responses to solicitations, bid 
 44.16  security, vendor errors, opening of responses, award of 
 44.17  contracts, tied bids, and award protest process; 
 44.18     (2) contract performance and failure to perform; 
 44.19     (3) authority to debar or suspend vendors, and 
 44.20  reinstatement of vendors; 
 44.21     (4) contract cancellation; ~~and~~ 
 44.22     (5) procurement from rehabilitation facilities; and 
 44.23     (6) organizational conflicts of interest. 
 44.24     Sec. 35.  Minnesota Statutes 2000, section 16C.03, is 
 44.25  amended by adding a subdivision to read: 
 44.26     Subd. 4a.  [COMMISSIONER APPROVAL.] Notwithstanding any law 
 44.27  to the contrary, after January 1, 2002, any contract entered 
 44.28  into by the department of transportation must be approved by the 
 44.29  commissioner, unless the commissioner has delegated approval 
 44.30  authority to the department of transportation under subdivision 
 44.31  16. 
 44.32     Sec. 36.  Minnesota Statutes 2000, section 16C.04, is 
 44.33  amended by adding a subdivision to read: 
 44.34     Subd. 3.  [ORGANIZATIONAL CONFLICTS OF INTEREST.] (a) The 
 44.35  commissioner shall make reasonable efforts to avoid, mitigate, 
 44.36  or neutralize organizational conflicts of interest.  To avoid an 
 45.1   organizational conflict of interest, the commissioner may 
 45.2   utilize methods including disqualifying a vendor from 
 45.3   eligibility for a contract award or canceling the contract if 
 45.4   the conflict is discovered after a contract has been issued.  To 
 45.5   mitigate or neutralize a conflict, the commissioner may use 
 45.6   methods such as revising the scope of work to be conducted, 
 45.7   allowing vendors to propose the exclusion of task areas that 
 45.8   create a conflict, or providing information to all vendors to 
 45.9   assure that all facts are known to all vendors.  
 45.10     (b) In instances where a conflict or potential conflict has 
 45.11  been identified and the commissioner determines that vital 
 45.12  operations of the state will be jeopardized if a contract with 
 45.13  the vendor is not established, the commissioner may waive the 
 45.14  requirements in paragraph (a). 
 45.15     Sec. 37.  Minnesota Statutes 2000, section 16C.05, 
 45.16  subdivision 2, is amended to read: 
 45.17     Subd. 2.  [CREATION AND VALIDITY OF CONTRACTS.] (a) A 
 45.18  contract is not valid and the state is not bound by it unless: 
 45.19     (1) it has first been executed by the head of the agency or 
 45.20  a delegate who is a party to the contract; 
 45.21     (2) it has been approved by the commissioner; 
 45.22     (3) it has been approved by the attorney general or a 
 45.23  delegate as to form and execution; 
 45.24     (4) the accounting system shows an obligation in an expense 
 45.25  budget or encumbrance for the amount of the contract liability; 
 45.26  and 
 45.27     (5) the combined contract and amendments shall not exceed 
 45.28  five years without specific, written approval by the 
 45.29  commissioner according to established policy, procedures, and 
 45.30  standards, or unless otherwise provided for by law.  The term of 
 45.31  the original contract must not exceed two years unless the 
 45.32  commissioner determines that a longer duration is in the best 
 45.33  interest of the state.  
 45.34     (b) Grants, interagency agreements, purchase orders, work 
 45.35  orders, and annual plans need not, in the discretion of the 
 45.36  commissioner and attorney general, require the signature of the 
 46.1   commissioner and/or the attorney general.  Bond purchase 
 46.2   agreements by the Minnesota public facilities authority do not 
 46.3   require the approval of the commissioner.  
 46.4      (c) A fully executed copy of every contract must be kept on 
 46.5   file at the contracting agency. 
 46.6      Sec. 38.  [16C.055] [BARTER ARRANGEMENTS LIMITED.] 
 46.7      Subdivision 1.  [REPORT.] By January 15, 2002, the 
 46.8   legislative auditor shall report to the legislature and governor 
 46.9   on agency use of barter agreements in furtherance of an agency's 
 46.10  mission.  The report shall list the type and approximate value 
 46.11  of each agency's agreement or agreements. 
 46.12     Subd. 2.  [RESTRICTION.] After July 1, 2002, an agency may 
 46.13  not contract or otherwise agree with a nongovernmental entity to 
 46.14  receive total nonmonetary consideration valued at more than 
 46.15  $100,000 in exchange for the agency providing nonmonetary 
 46.16  consideration, unless such an agreement is specifically 
 46.17  authorized by law.  This subdivision does not apply to the state 
 46.18  lottery. 
 46.19     Sec. 39.  Minnesota Statutes 2000, section 16C.06, 
 46.20  subdivision 2, is amended to read: 
 46.21     Subd. 2.  [SOLICITATION PROCESS.] (a) A formal solicitation 
 46.22  must be used to acquire all goods, service contracts, and 
 46.23  utilities estimated at or more than ~~$25,000~~ $50,000 unless 
 46.24  otherwise provided for.  All formal responses must be sealed 
 46.25  when they are received and must be opened in public at the hour 
 46.26  stated in the solicitation.  Formal responses must be 
 46.27  authenticated by the responder in a manner specified by the 
 46.28  commissioner.  
 46.29     (b) An informal solicitation may be used to acquire all 
 46.30  goods, service contracts, and utilities that are estimated at 
 46.31  less than ~~$25,000~~ $50,000.  The number of vendors required to 
 46.32  receive solicitations may be determined by the commissioner.  
 46.33  Informal responses must be authenticated by the responder in a 
 46.34  manner specified by the commissioner. 
 46.35     Sec. 40.  Minnesota Statutes 2000, section 16C.06, 
 46.36  subdivision 3, is amended to read: 
 47.1      Subd. 3.  [INFORMATION IN BIDS AND PROPOSALS.] (a) Only the 
 47.2   name of the vendor and dollar amounts specified in a response to 
 47.3   a request for bids shall be read at the time of opening.  Only 
 47.4   the name of the responding vendors to all requests for proposals 
 47.5   shall be read at the time of opening.  All other information 
 47.6   contained in a vendor's response to a bid is classified as 
 47.7   nonpublic data, as defined in section 13.02, and remains 
 47.8   nonpublic data until completion of the selection process.  All 
 47.9   other information contained in a vendor's response to a request 
 47.10  for proposal, other than the name of the vendor, is classified 
 47.11  as nonpublic data, as defined in section 13.02, and remains 
 47.12  nonpublic data until the completion of the evaluation process.  
 47.13     (b) All responses are public information at the time of the 
 47.14  award unless otherwise provided for.  All responses and 
 47.15  documents pertaining to the final award of an acquisition must 
 47.16  be retained and made a part of a permanent file or record and 
 47.17  remain open to public inspection, after award, unless otherwise 
 47.18  provided for by law. 
 47.19     (c) If the commissioner rejects all responses to a 
 47.20  solicitation, information in the responses, other than the 
 47.21  information made public pursuant to paragraph (a), remains 
 47.22  nonpublic data, as defined in section 13.02, until a selection 
 47.23  is made based on responses to a resolicitation of bids, the 
 47.24  evaluation process is completed based on responses to a 
 47.25  resolicitation of a request for proposals, or a determination is 
 47.26  made to abandon the purchase. 
 47.27     Sec. 41.  [16C.066] [COST-BENEFIT ANALYSIS.] 
 47.28     (a) The commissioner or an agency official to whom the 
 47.29  commissioner has delegated duties under section 16C.03, 
 47.30  subdivision 16, may not approve a contract or purchase of goods 
 47.31  or services for transit or other transportation purposes in an 
 47.32  amount greater than $10,000,000 unless a cost-benefit analysis 
 47.33  has been completed and shows a positive benefit to the public.  
 47.34  The management analysis division must perform or direct the 
 47.35  performance of the analysis.  A cost-benefit analysis must be 
 47.36  performed for a project if an aggregation of contracts or 
 48.1   purchases for a project exceeds $10,000,000. 
 48.2      (b) All cost-benefit analysis documents under this section, 
 48.3   including preliminary drafts and notes, are public data. 
 48.4      (c) This section applies to contracts for goods or services 
 48.5   that are expected to have a useful life of more than three 
 48.6   years.  This section does not apply for purchase of goods or 
 48.7   services for response to a natural disaster if an emergency has 
 48.8   been declared by the governor. 
 48.9      (d) This section expires June 30, 2003. 
 48.10     Sec. 42.  Minnesota Statutes 2000, section 16C.081, is 
 48.11  amended to read: 
 48.12     16C.081 [EXCEPTION FOR FEDERAL CONTRACTS.] 
 48.13     Notwithstanding any law to the contrary, ~~the commissioner~~ 
 48.14  ~~of transportation, commissioner of the pollution control agency,~~ 
 48.15  ~~or commissioner of natural resources~~ an agency may, when 
 48.16  required by a federal agency entering into an intergovernmental 
 48.17  contract, negotiate contract terms providing for full or partial 
 48.18  prepayment to the federal agency before work is performed or 
 48.19  services are provided. 
 48.20     Sec. 43.  Minnesota Statutes 2000, section 16C.22, is 
 48.21  amended to read: 
 48.22     16C.22 [DISTRICT HEATING.] 
 48.23     Notwithstanding any other law, general or special, the 
 48.24  commissioner is authorized to enter into or approve a written 
 48.25  agreement not to exceed 31 years with a district heating or 
 48.26  cooling utility that will specify, but not be limited to, the 
 48.27  appropriate terms and conditions for the interchange of district 
 48.28  heating or cooling services. 
 48.29     Sec. 44.  [16E.035] [TECHNOLOGY INVENTORY.] 
 48.30     The commissioner of administration must prepare an 
 48.31  inventory of technology owned or leased by state agencies.  The 
 48.32  inventory must include:  (1) information on how the technology 
 48.33  fits into the state's information technology architecture; and 
 48.34  (2) a projected replacement schedule.  The commissioner must 
 48.35  report the inventory to the legislative committees with primary 
 48.36  jurisdiction over state technology issues by July 1 of each 
 49.1   even-numbered year. 
 49.2      Sec. 45.  Minnesota Statutes 2000, section 16E.04, 
 49.3   subdivision 2, as amended by Laws 2001, chapter 7, section 11, 
 49.4   is amended to read: 
 49.5      Subd. 2.  [RESPONSIBILITIES.] (a) In addition to other 
 49.6   activities prescribed by law, the office shall carry out the 
 49.7   duties set out in this subdivision. 
 49.8      (b) The office shall develop and establish a state 
 49.9   information architecture to ensure that further state agency 
 49.10  development and purchase of information and communications 
 49.11  systems, equipment, and services is designed to ensure that 
 49.12  individual agency information systems complement and do not 
 49.13  needlessly duplicate or conflict with the systems of other 
 49.14  agencies.  When state agencies have need for the same or similar 
 49.15  public data, the commissioner, in coordination with the affected 
 49.16  agencies, shall promote the most efficient and cost-effective 
 49.17  method of producing and storing data for or sharing data between 
 49.18  those agencies.  The development of this information 
 49.19  architecture must include the establishment of standards and 
 49.20  guidelines to be followed by state agencies. 
 49.21     (c) The office shall assist state agencies in the planning 
 49.22  and management of information systems so that an individual 
 49.23  information system reflects and supports the state agency's 
 49.24  mission and the state's requirements and functions. 
 49.25     (d) The office shall review agency requests for legislative 
 49.26  appropriations for the development or purchase of information 
 49.27  systems equipment or software. 
 49.28     (e) The office shall review major purchases of information 
 49.29  systems equipment to: 
 49.30     (1) ensure that the equipment follows the standards and 
 49.31  guidelines of the state information architecture; 
 49.32     (2) ensure that the equipment is consistent with the 
 49.33  information management principles adopted by the information 
 49.34  policy council; 
 49.35     (3) evaluate whether the agency's proposed purchase 
 49.36  reflects a cost-effective policy regarding volume purchasing; 
 50.1   and 
 50.2      (4) ensure that the equipment is consistent with other 
 50.3   systems in other state agencies so that data can be shared among 
 50.4   agencies, unless the office determines that the agency 
 50.5   purchasing the equipment has special needs justifying the 
 50.6   inconsistency. 
 50.7      (f) The office shall review the operation of information 
 50.8   systems by state agencies and provide advice and assistance to 
 50.9   ensure that these systems are operated efficiently and 
 50.10  continually meet the standards and guidelines established by the 
 50.11  office.  The standards and guidelines must emphasize uniformity 
 50.12  that encourages information interchange, open systems 
 50.13  environments, and portability of information whenever 
 50.14  practicable and consistent with an agency's authority and 
 50.15  chapter 13.  ~~The office, in consultation with the legislative~~ 
 50.16  ~~reference library, shall recommend specific standards and~~ 
 50.17  ~~guidelines for each state agency within a time period fixed by~~ 
 50.18  ~~the office in regard to the following:~~ 
 50.19     ~~(1) establishing methods and systems directed at reducing~~ 
 50.20  ~~and ultimately eliminating redundant storage of data; and~~ 
 50.21     ~~(2) establishing information sales systems that utilize~~ 
 50.22  ~~licensing and royalty agreements to the greatest extent~~ 
 50.23  ~~possible, together with procedures for agency denial of requests~~ 
 50.24  ~~for licenses or royalty agreements by commercial users or~~ 
 50.25  ~~resellers of the information.  Section 3.751 does not apply to~~ 
 50.26  ~~those licensing and royalty agreements, and the agreements must~~ 
 50.27  ~~include provisions that section 3.751 does not apply and that~~ 
 50.28  ~~the state is immune from liability under the agreement.~~ 
 50.29     (g) The office shall conduct a comprehensive review at 
 50.30  least every three years of the information systems investments 
 50.31  that have been made by state agencies and higher education 
 50.32  institutions.  The review must include recommendations on any 
 50.33  information systems applications that could be provided in a 
 50.34  more cost-beneficial manner by an outside source.  The office 
 50.35  must report the results of its review to the legislature and the 
 50.36  governor. 
 51.1      ~~(h) The office shall report to the legislature by January~~ 
 51.2   ~~15 of each year on progress in implementing paragraph (f),~~ 
 51.3   ~~clauses (1) and (2).~~ 
 51.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 51.5   following final enactment. 
 51.6      Sec. 46.  [16E.0465] [TECHNOLOGY APPROVAL.] 
 51.7      Subdivision 1.  [APPLICATION.] This section applies to an 
 51.8   appropriation of more than $1,000,000 of state or federal funds 
 51.9   to a state agency for any information and communications 
 51.10  technology project or data processing device or system or for 
 51.11  any phase of such a project, device, or system.  For purposes of 
 51.12  this section, an appropriation of state or federal funds to a 
 51.13  state agency includes an appropriation:  
 51.14     (1) to the Minnesota state colleges and universities; 
 51.15     (2) to a constitutional officer; 
 51.16     (3) for a project that includes both a state agency and 
 51.17  units of local government; and 
 51.18     (4) to a state agency for grants to be made to other 
 51.19  entities. 
 51.20     Subd. 2.  [REQUIRED REVIEW AND APPROVAL.] (a) A state 
 51.21  agency receiving an appropriation for an information and 
 51.22  communications technology project or data processing device or 
 51.23  system subject to this section must divide the project into 
 51.24  phases. 
 51.25     (b) The commissioner of finance may not authorize the 
 51.26  encumbrance or expenditure of an appropriation of state funds to 
 51.27  a state agency for any phase of a project, device, or system 
 51.28  subject to this section unless the office of technology has 
 51.29  reviewed each phase of the project, device, or system, and based 
 51.30  on this review, the commissioner of administration has 
 51.31  determined for each phase that: 
 51.32     (1) the project is compatible with the state information 
 51.33  architecture and other policies and standards established by the 
 51.34  commissioner of administration; and 
 51.35     (2) the agency is able to accomplish the goals of the phase 
 51.36  of the project with the funds appropriated. 
 52.1      Subd. 3.  [ROLE OF COMMISSIONER.] Unless money is 
 52.2   appropriated directly to the commissioner of administration, the 
 52.3   role of the commissioner and the office of technology is to 
 52.4   review and approve projects under this section, and not to 
 52.5   design or implement the projects. 
 52.6      Sec. 47.  [16E.055] [COMMON WEB FORMAT.] 
 52.7      A state agency that implements electronic government 
 52.8   services for fees, licenses, sales, or other purposes must use a 
 52.9   common Web page format approved by the commissioner of 
 52.10  administration for those electronic government services.  The 
 52.11  commissioner may create a single entry site for all agencies to 
 52.12  use for electronic government services. 
 52.13     Sec. 48.  [16E.09] [TECHNOLOGY ENTERPRISE FUND.] 
 52.14     Subdivision 1.  [FUND ESTABLISHED.] A technology enterprise 
 52.15  fund is established.  Money deposited in the fund is 
 52.16  appropriated to the commissioner of administration for the 
 52.17  purpose of funding technology projects among government entities 
 52.18  that promote cooperation, innovation, and shared use of 
 52.19  technology and technology standards, and electronic government 
 52.20  services.  Savings generated by information technology and 
 52.21  communications projects may be deposited in the fund upon 
 52.22  agreement by the commissioner of administration and the 
 52.23  executive of the government entity generating the funds.  The 
 52.24  transfer of funds between state agencies is subject to the 
 52.25  approval of the commissioner of finance.  The commissioner of 
 52.26  finance shall notify the chairs of the committees funding the 
 52.27  affected state agencies of the transfers.  Funds are available 
 52.28  until June 30, 2005. 
 52.29     Subd. 2.  [TECHNOLOGY ENTERPRISE BOARD.] A technology 
 52.30  enterprise board is established to advise the state chief 
 52.31  information officer, the office of technology, the governor, the 
 52.32  executive branch, and the legislature regarding information 
 52.33  technology funding and expenditures from the technology 
 52.34  enterprise fund.  The board shall consist of up to 18 members 
 52.35  representing public and private entities with general expertise 
 52.36  in information technology and telecommunications initiatives and 
 53.1   planning.  The state chief information officer shall act as 
 53.2   chair and the office of technology shall provide necessary staff 
 53.3   support.  Nonlegislator members shall be appointed by the 
 53.4   governor, including one nominee representing the state executive 
 53.5   council, one nominee representing the supreme court, and one 
 53.6   nominee representing the higher education advisory council; and 
 53.7   seven at-large members representing the private sector with 
 53.8   experience in business.  The speaker of the house of 
 53.9   representatives and the senate subcommittee on committees shall 
 53.10  each appoint two legislators to the board.  Legislator members 
 53.11  serve at the pleasure of the appointing authority.  Membership 
 53.12  terms, compensation, and removal of nonlegislator board members 
 53.13  are governed by section 15.059, except that terms are three 
 53.14  years and the board expires on June 30, 2005. 
 53.15     Subd. 3.  [REPORT TO LEGISLATURE.] By February 1 each year, 
 53.16  the commissioner of administration shall report to the chairs of 
 53.17  the finance committees in the senate and house of 
 53.18  representatives with jurisdiction over governmental operations 
 53.19  on expenditures and activities under this section. 
 53.20     Subd. 4.  [EXPIRATION.] This section expires June 30, 2005. 
 53.21     Sec. 49.  Minnesota Statutes 2000, section 43A.04, is 
 53.22  amended by adding a subdivision to read: 
 53.23     Subd. 12.  [TOTAL COMPENSATION REPORTING.] (a) The 
 53.24  commissioner, in consultation with the commissioner of finance, 
 53.25  shall report to the governor and the legislature by January 15 
 53.26  each year on executive branch employee salary and benefits.  The 
 53.27  purpose of the report is to assist in effective long-range 
 53.28  planning and to provide data necessary to compute annual and 
 53.29  biennial costs related to the state workforce.  The report must 
 53.30  use data available in the biennial budget system and other 
 53.31  necessary sources.  The report also must be made available to 
 53.32  the public in an electronic format. 
 53.33     (b) The report must be organized by agency.  The report 
 53.34  must list the salary or hourly rate of pay for each agency 
 53.35  employee.  The report may list the employee by name or by an 
 53.36  identification number. 
 54.1      (c) The report must also include an estimate of the average 
 54.2   cost to the state of providing insurance and other benefits to a 
 54.3   state employee. 
 54.4      Sec. 50.  Minnesota Statutes 2000, section 43A.04, is 
 54.5   amended by adding a subdivision to read: 
 54.6      Subd. 13.  [COMBINED CHARITIES CAMPAIGN.] (a) The 
 54.7   commissioner shall administer the state employee combined 
 54.8   charities campaign.  This duty includes registration of combined 
 54.9   charitable organizations under section 309.501, and coordination 
 54.10  and administration of the process under which state employees 
 54.11  contribute to combined charitable organizations. 
 54.12     (b) The commissioner, in consultation with other 
 54.13  commissioners, shall appoint a voluntary board of state 
 54.14  employees to oversee the conduct of an annual combined charities 
 54.15  campaign.  The board must, to the extent possible, represent a 
 54.16  cross-section of state employee groups and geographic areas 
 54.17  where state employees are located.  The board shall provide 
 54.18  direction to the commissioner's employee assigned to administer 
 54.19  the annual campaign and shall approve any expenditure of state 
 54.20  funds appropriated for purposes of this subdivision. 
 54.21     Sec. 51.  Minnesota Statutes 2000, section 43A.047, is 
 54.22  amended to read: 
 54.23     43A.047 [CONTRACTED SERVICES.] 
 54.24     (a) Executive agencies, including the Minnesota state 
 54.25  colleges and universities system, must demonstrate that they 
 54.26  cannot use available staff before hiring outside consultants or 
 54.27  services.  If use of consultants is necessary, agencies are 
 54.28  encouraged to negotiate contracts that will involve permanent 
 54.29  staff, so as to upgrade and maximize training of state employees.
 54.30     (b) If agencies reduce operating budgets, agencies must 
 54.31  give priority to reducing spending on professional and technical 
 54.32  service contracts before laying off permanent employees. 
 54.33     ~~(c) Agencies must report to the commissioner of~~ 
 54.34  ~~administration by November 1 each year on implementation of this~~ 
 54.35  ~~section during the previous fiscal year.  The reports must~~ 
 54.36  ~~include amounts spent on professional and technical service~~ 
 55.1   ~~contracts during the previous fiscal year.  The commissioner~~ 
 55.2   ~~shall compile the reports into a uniform format and forward them~~ 
 55.3   ~~to the chairs of the senate finance and house ways and means~~ 
 55.4   ~~committees by November 15.~~ 
 55.5      Sec. 52.  Minnesota Statutes 2000, section 79.34, 
 55.6   subdivision 1, is amended to read: 
 55.7      Subdivision 1.  [CONDITIONS REQUIRING MEMBERSHIP.] The 
 55.8   nonprofit association known as the workers' compensation 
 55.9   reinsurance association may be incorporated under chapter 317A 
 55.10  with all the powers of a corporation formed under that chapter, 
 55.11  except that if the provisions of that chapter are inconsistent 
 55.12  with sections 79.34 to 79.40, sections 79.34 to 79.40 govern.  
 55.13  Each insurer as defined by section 79.01, subdivision 2, shall, 
 55.14  as a condition of its authority to transact workers' 
 55.15  compensation insurance in this state, be a member of the 
 55.16  reinsurance association and is bound by the plan of operation of 
 55.17  the reinsurance association; provided, that all affiliated 
 55.18  insurers within a holding company system as defined in chapter 
 55.19  60D are considered a single entity for purposes of the exercise 
 55.20  of all rights and duties of membership in the reinsurance 
 55.21  association.  Each self-insurer approved under section 176.181 
 55.22  and each political subdivision that self-insures shall, as a 
 55.23  condition of its authority to self-insure workers' compensation 
 55.24  liability in this state, be a member of the reinsurance 
 55.25  association and is bound by its plan of operation; provided that:
 55.26     (1) all affiliated companies within a holding company 
 55.27  system, as determined by the commissioner of labor and industry 
 55.28  in a manner consistent with the standards and definitions in 
 55.29  chapter 60D, are considered a single entity for purposes of the 
 55.30  exercise of all rights and duties of membership in the 
 55.31  reinsurance association; and 
 55.32     (2) all group self-insurers granted authority to 
 55.33  self-insure pursuant to section 176.181 are considered single 
 55.34  entities for purposes of the exercise of all the rights and 
 55.35  duties of membership in the reinsurance association.  As a 
 55.36  condition of its authority to self-insure workers' compensation 
 56.1   liability, and for losses incurred after December 31, 1983, the 
 56.2   state is a member of the reinsurance association and is bound by 
 56.3   its plan of operation.  The commissioner of employee relations 
 56.4   represents the state in the exercise of all the rights and 
 56.5   duties of membership in the reinsurance association.  ~~The state~~ 
 56.6   ~~treasurer shall pay the premium to the reinsurance association~~ 
 56.7   ~~from the state compensation revolving fund upon warrants of the~~ 
 56.8   ~~commissioner of employee relations, except that~~ The amounts 
 56.9   necessary to pay the state's premiums required for coverage by 
 56.10  the workers' compensation reinsurance association are 
 56.11  appropriated from the general fund to the commissioner of 
 56.12  employee relations.  The University of Minnesota shall pay its 
 56.13  portion of workers' compensation reinsurance premiums directly 
 56.14  to the workers' compensation reinsurance association.  For the 
 56.15  purposes of this section, "state" means the administrative 
 56.16  branch of state government, the legislative branch, the judicial 
 56.17  branch, the University of Minnesota, and any other entity whose 
 56.18  workers' compensation liability is paid from the state revolving 
 56.19  fund.  The commissioner of finance may calculate, prorate, and 
 56.20  charge a department or agency the portion of premiums paid to 
 56.21  the reinsurance association for employees who are paid wholly or 
 56.22  in part by federal funds, dedicated funds, or special revenue 
 56.23  funds.  The reinsurance association is not a state agency.  
 56.24  Actions of the reinsurance association and its board of 
 56.25  directors and actions of the commissioner of labor and industry 
 56.26  with respect to the reinsurance association are not subject to 
 56.27  chapters 13 and 15.  All property owned by the association is 
 56.28  exempt from taxation.  The reinsurance association is not 
 56.29  obligated to make any payments or pay any assessments to any 
 56.30  funds or pools established pursuant to this chapter or chapter 
 56.31  176 or any other law. 
 56.32     Sec. 53.  [116T.01] [DEFINITIONS.] 
 56.33     For purposes of this chapter: 
 56.34     (1) "board" means the board of directors of Northern 
 56.35  Technology Initiative, Inc.; and 
 56.36     (2) "corporation" means Northern Technology Initiative, Inc.
 57.1      Sec. 54.  [116T.02] [CORPORATION; MEMBERS; BOARD OF 
 57.2   DIRECTORS; POWERS.] 
 57.3      Subdivision 1.  [PUBLIC CORPORATION.] Northern Technology 
 57.4   Initiative, Inc. is a public corporation of the state and is not 
 57.5   subject to the laws governing a state agency except as provided 
 57.6   in this chapter.  The business of the corporation must be 
 57.7   conducted under the name "Northern Technology Initiative, Inc." 
 57.8      Subd. 2.  [PURPOSE.] Northern Technology Initiative, Inc. 
 57.9   is a regional economic initiative of Minnesota counties, 
 57.10  townships, home rule charter or statutory cities within 
 57.11  participating counties, economic development groups, state and 
 57.12  federal agencies, public and private post-secondary 
 57.13  institutions, and businesses.  The project area includes, at a 
 57.14  minimum, the counties of Carlton, Chisago, Isanti, Kanabec, and 
 57.15  Pine, but may be expanded as other contiguous counties elect to 
 57.16  participate.  The purpose of the corporation is to engage in an 
 57.17  integrated, jointly planned economic development effort with a 
 57.18  focus on encouraging growth among existing businesses and 
 57.19  attracting technology companies to the region served by the 
 57.20  corporation.  A home rule charter city, statutory city, county, 
 57.21  township, or other public entity participating in the initiative 
 57.22  may budget public funds for the initiative.  
 57.23     Subd. 3.  [BOARD OF DIRECTORS.] The corporation is governed 
 57.24  by a board of directors consisting of: 
 57.25     (1) a member of the governing body of each participating 
 57.26  county, appointed by the governing body; 
 57.27     (2) a member of the governing body of each participating 
 57.28  home rule charter or statutory city, appointed by the governing 
 57.29  body; 
 57.30     (3) the president of each participating post-secondary 
 57.31  institution; 
 57.32     (4) the commissioner of the department of trade and 
 57.33  economic development or an employee of the department designated 
 57.34  by the commissioner; and 
 57.35     (5) other members as may be provided by the bylaws adopted 
 57.36  and amended in accordance with subdivision 4. 
 58.1   The membership terms, compensation, removal, and filling of 
 58.2   vacancies of members of the board are governed by the bylaws of 
 58.3   the corporation. 
 58.4      Subd. 4.  [BYLAWS.] The board of directors shall adopt 
 58.5   bylaws and publish the bylaws and amendments to the bylaws in 
 58.6   the State Register.  The bylaws must provide for financial and 
 58.7   other contributions by participating entities to cover the 
 58.8   operation of the corporation. 
 58.9      Subd. 5.  [PLACES OF BUSINESS.] The board shall locate and 
 58.10  maintain the corporation's places of business within Carlton, 
 58.11  Chisago, Isanti, Kanabec, or Pine county. 
 58.12     Subd. 6.  [MEETINGS AND ACTIONS OF BOARD.] (a) The board 
 58.13  must meet at least twice a year and may hold additional meetings 
 58.14  upon giving notice in accordance with the bylaws of the 
 58.15  corporation.  Except as provided in subdivision 7, board 
 58.16  meetings are subject to chapter 13D. 
 58.17     (b) A conference among directors by any means of 
 58.18  communication through which the directors may simultaneously 
 58.19  hear each other during the conference constitutes a board 
 58.20  meeting if the number of directors participating in the 
 58.21  conference is sufficient to constitute a quorum for the 
 58.22  meeting.  Participation in a meeting by that means constitutes 
 58.23  presence in person at the meeting. 
 58.24     Subd. 7.  [CLOSED MEETINGS; RECORDING.] The board of 
 58.25  directors may, by a majority vote in a public meeting, decide to 
 58.26  hold a closed meeting for purposes of discussing data described 
 58.27  in subdivision 8 or security information, trade secret 
 58.28  information, or labor relations information, as defined in 
 58.29  section 13.37, subdivision 1.  The time and place of the closed 
 58.30  meeting must be announced at the public meeting.  A written roll 
 58.31  of members present at the closed meeting must be made available 
 58.32  to the public after the closed meeting.  The proceedings of a 
 58.33  closed meeting must be tape recorded.  The data on the tape are 
 58.34  nonpublic data or private data on individuals as defined in 
 58.35  section 13.02, subdivision 9 or 12, whichever is applicable. 
 58.36     Subd. 8.  [APPLICATION AND INVESTIGATIVE DATA.] Financial 
 59.1   data, statistics, and information furnished to the corporation 
 59.2   in connection with assistance or proposed assistance, including 
 59.3   credit reports; financial statements; statements of net worth; 
 59.4   income tax returns, either personal or corporate; and any other 
 59.5   business and personal financial records, are private data with 
 59.6   regard to data on individuals under section 13.02, subdivision 
 59.7   12, or nonpublic data with regard to data not on individuals 
 59.8   under section 13.02, subdivision 9. 
 59.9      Subd. 9.  [CONFLICT OF INTEREST.] A director, employee, or 
 59.10  officer of the corporation may not participate in or vote on a 
 59.11  decision of the board relating to an organization in which the 
 59.12  director has either a direct or indirect financial interest or a 
 59.13  conflict of interest as described in section 10A.07. 
 59.14     Subd. 10.  [TORT CLAIMS.] The corporation is a state agency 
 59.15  for purposes of section 3.736, except the corporation, not the 
 59.16  state, is responsible for paying for any tort liability. 
 59.17     Subd. 11.  [DATA PRACTICES AND RECORDS MANAGEMENT.] The 
 59.18  corporation is subject to chapter 13 and sections 15.17 and 
 59.19  138.163 to 138.226. 
 59.20     Sec. 55.  [116T.03] [CORPORATE PERSONNEL.] 
 59.21     Subdivision 1.  [GENERALLY.] The board shall appoint and 
 59.22  set the compensation for the executive director who serves as 
 59.23  chief executive officer of the corporation.  The compensation of 
 59.24  the executive director may not exceed 85 percent of the 
 59.25  governor's salary.  The board may designate the executive 
 59.26  director as its general agent.  Subject to the approval of the 
 59.27  board, the executive director shall employ staff consultants and 
 59.28  other agents necessary to carry out the mission of the 
 59.29  corporation. 
 59.30     Subd. 2.  [STATUS OF EMPLOYEES.] Employees, officers, and 
 59.31  directors of the corporation are not state employees, but are 
 59.32  covered by section 3.736 and, at the option of the board, 
 59.33  employees may participate in the state retirement plan for 
 59.34  employees in the unclassified service, the state deferred 
 59.35  compensation plan, and an insurance plan administered by the 
 59.36  commissioner of employee relations. 
 60.1      Sec. 56.  [116T.04] [POWERS AND DUTIES OF CORPORATION.] 
 60.2      Subdivision 1.  [GENERAL POWERS AND DUTIES.] (a) The 
 60.3   corporation has the powers granted to a nonprofit corporation by 
 60.4   section 317A.161, except as otherwise provided in this chapter. 
 60.5      (b) Except as specified in section 116T.02, subdivision 10, 
 60.6   the state is not liable for the obligations of the corporation. 
 60.7      (c) Section 317A.161 applies to this chapter and the 
 60.8   corporation in the same manner that it applies to business 
 60.9   corporations established under chapter 317A. 
 60.10     Subd. 2.  [RULES.] The corporation must publish in the 
 60.11  State Register any guidelines, policies, or eligibility criteria 
 60.12  prepared or adopted by the corporation for its programs. 
 60.13     Sec. 57.  [116T.05] [AUDITS.] 
 60.14     The corporation is subject to the auditing requirements of 
 60.15  sections 3.971 and 3.972. 
 60.16     Sec. 58.  [116T.06] [DISSOLUTION.] 
 60.17     In the event of dissolution of the corporation for any 
 60.18  reason, the bylaws must provide for return of the proceeds of 
 60.19  that liquidation and any wholly owned assets of the corporation 
 60.20  to the entities participating in Northern Technology Initiative, 
 60.21  Inc. in exchange for the assumption of all outstanding 
 60.22  obligations of the corporation. 
 60.23     Sec. 59.  Minnesota Statutes 2000, section 136F.07, is 
 60.24  amended to read: 
 60.25     136F.07 [CHANCELLOR.] 
 60.26     The board shall appoint a chancellor who shall serve in the 
 60.27  unclassified service.  The chancellor shall possess powers and 
 60.28  perform duties as delegated by the board.  The board shall set 
 60.29  the salary of the chancellor according to section ~~15A.0815~~ 
 60.30  15A.081, subdivision 7c. 
 60.31     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 60.32  following final enactment. 
 60.33     Sec. 60.  Minnesota Statutes 2000, section 136F.40, 
 60.34  subdivision 2, is amended to read: 
 60.35     Subd. 2.  [~~COMPENSATION~~ CONTRACTS.] ~~Notwithstanding any~~ 
 60.36  ~~other provision to the contrary, when establishing compensation~~ 
 61.1   ~~the board may provide, through a contract, a liquidated salary~~ 
 61.2   ~~amount or other compensation if a contract with a chancellor or~~ 
 61.3   ~~president is terminated by the board prior to its expiration.~~ 
 61.4      ~~Any benefits shall be excluded in computation of~~ 
 61.5   ~~retirement, insurance, and other benefits available through or~~ 
 61.6   ~~from the state.  Any benefits or additional compensation must be~~ 
 61.7   ~~as provided under the plan approved under section 43A.18,~~ 
 61.8   ~~subdivision 3a.~~ (a) The board may enter into a contract with the 
 61.9   chancellor, a vice-chancellor, or a president, containing terms 
 61.10  and conditions of employment.  The terms of the contract must be 
 61.11  authorized under a plan approved under section 43A.18, 
 61.12  subdivision 3a. 
 61.13     (b) Notwithstanding section 43A.17, subdivision 11, or 
 61.14  other law to the contrary, a contract under this section may 
 61.15  provide a liquidated salary amount or other compensation if a 
 61.16  contract is terminated by the board prior to its expiration. 
 61.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 61.18  following final enactment. 
 61.19     Sec. 61.  Minnesota Statutes 2000, section 179A.15, is 
 61.20  amended to read: 
 61.21     179A.15 [MEDIATION.] 
 61.22     Once notice has been given under section 179A.14, the 
 61.23  employer or the exclusive representative may petition the 
 61.24  commissioner for mediation services.  
 61.25     A petition by an employer shall be signed by the employer 
 61.26  or an authorized officer or agent.  A petition by an exclusive 
 61.27  representative shall be signed by its authorized officer.  All 
 61.28  petitions shall be ~~delivered to~~ served on the commissioner in 
 61.29  ~~person or sent by certified mail~~ writing.  The petition shall 
 61.30  state briefly the nature of the disagreement of the parties.  
 61.31  Upon receipt of a petition and upon concluding that mediation 
 61.32  would be useful, the commissioner shall fix a time and place for 
 61.33  a conference with the parties to negotiate the issues not agreed 
 61.34  upon, and shall then take the most expedient steps to bring 
 61.35  about a settlement, including assisting in negotiating and 
 61.36  drafting an agreement.  
 62.1      If the commissioner determines that mediation would be 
 62.2   useful in resolving a dispute, the commissioner may mediate the 
 62.3   dispute even if neither party has filed a petition for 
 62.4   mediation.  In these cases, the commissioner shall proceed as if 
 62.5   a petition had been filed.  
 62.6      The commissioner shall not furnish mediation services to 
 62.7   any employee or employee representative who is not certified as 
 62.8   an exclusive representative.  
 62.9      All parties shall respond to the summons of the 
 62.10  commissioner for conferences and shall continue in conference 
 62.11  until excused by the commissioner. 
 62.12     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 62.13  following final enactment. 
 62.14     Sec. 62.  Minnesota Statutes 2000, section 190.06, 
 62.15  subdivision 1, is amended to read: 
 62.16     Subdivision 1.  [COMPOSITION.] The militia shall consist of:
 62.17     (1) all able-bodied citizens of the state and other 
 62.18  able-bodied persons~~,~~ residing in the state who have or shall 
 62.19  have declared their intention to become citizens of the United 
 62.20  States, when so authorized by federal law, who comply with the 
 62.21  minimum age requirements for federal regular military service 
 62.22  under United States Code, title 10, section 505, and who are not 
 62.23  more than 45 years of age; provided, that the governor may, when 
 62.24  the governor deems it necessary for the defense of the state, 
 62.25  extend the maximum age for militia service to not more than 64 
 62.26  years; and 
 62.27     (2) persons who enlist in, are commissioned in, or are 
 62.28  otherwise appointed to the Minnesota national guard in 
 62.29  accordance with applicable federal law and regulation, including 
 62.30  enlisted members, warrant officers, and commissioned officers. 
 62.31     Sec. 63.  Minnesota Statutes 2000, section 190.07, is 
 62.32  amended to read: 
 62.33     190.07 [APPOINTMENT; QUALIFICATIONS; RANK.] 
 62.34     There shall be an adjutant general of the state who shall 
 62.35  be appointed by the governor.  The adjutant general shall be a 
 62.36  staff officer, who at the time of appointment shall be a 
 63.1   commissioned officer of the national guard of this state, with 
 63.2   not less than ten years military service in the ~~armed forces~~ 
 63.3   national guard of this state or the armed forces of the United 
 63.4   States, at least three of which shall have been commissioned and 
 63.5   who shall have reached the grade of a field officer.  
 63.6      The adjutant general shall hold at least the rank of major 
 63.7   general and may be promoted to and including the highest rank 
 63.8   authorized under federal law.  However, the adjutant 
 63.9   general ~~shall~~ may not be ~~appointed~~ promoted to the rank of major 
 63.10  general without having at least 20 years service in the 
 63.11  Minnesota national guard, at least one of which ~~one year~~ has 
 63.12  been in the rank of brigadier general.  
 63.13     The term of the adjutant general is seven years from the 
 63.14  date of appointment.  Section 15.06, subdivisions 3, 4, and 5, 
 63.15  governs filling of vacancies in the office of adjutant general.  
 63.16  The adjutant general shall not be removed from office during a 
 63.17  term except upon withdrawal of federal recognition or as 
 63.18  otherwise provided by the military laws of this state. 
 63.19     Sec. 64.  Minnesota Statutes 2000, section 192.501, 
 63.20  subdivision 2, is amended to read: 
 63.21     Subd. 2.  [TUITION AND TEXTBOOK REIMBURSEMENT GRANT 
 63.22  PROGRAM.] (a) The adjutant general shall establish a program to 
 63.23  provide tuition and textbook reimbursement grants to eligible 
 63.24  members of the Minnesota national guard within the limitations 
 63.25  of this subdivision. 
 63.26     (b) Eligibility is limited to a member of the national 
 63.27  guard who: 
 63.28     (1) is serving satisfactorily as defined by the adjutant 
 63.29  general; 
 63.30     (2) is attending a post-secondary educational institution, 
 63.31  as defined by section 136A.15, subdivision 6, including a 
 63.32  vocational or technical school operated or regulated by this 
 63.33  state or another state or province; and 
 63.34     (3) provides proof of satisfactory completion of 
 63.35  coursework, as defined by the adjutant general. 
 63.36     In addition, if a member of the Minnesota national guard is 
 64.1   killed in the line of state active service or federally funded 
 64.2   state active service, as defined in section 190.05, subdivisions 
 64.3   5a and 5b, the member's surviving spouse, and any surviving 
 64.4   dependent who has not yet reached 24 years of age, is eligible 
 64.5   for a tuition and textbook reimbursement grant. 
 64.6      The adjutant general may, within the limitations of this 
 64.7   paragraph and other applicable laws, determine additional 
 64.8   eligibility criteria for the grant, and must specify the 
 64.9   criteria in department regulations and publish changes as 
 64.10  necessary. 
 64.11     (c) The amount of a tuition and textbook reimbursement 
 64.12  grant must be specified on a schedule as determined and 
 64.13  published in department regulations by the adjutant general, but 
 64.14  is limited to a maximum of an amount equal to the greater of: 
 64.15     (1) ~~75~~ 80 percent of the cost of tuition for lower division 
 64.16  programs in the college of liberal arts at the twin cities 
 64.17  campus of the University of Minnesota in the most recent 
 64.18  academic year; or 
 64.19     (2) ~~50~~ 80 percent of the cost of tuition for the program in 
 64.20  which the person is enrolled at that Minnesota public 
 64.21  institution, or if that public institution is outside the state 
 64.22  of Minnesota, for the cost of a comparable program at the 
 64.23  University of Minnesota, except that in the case of a survivor 
 64.24  as defined in paragraph (b), the amount of the tuition and 
 64.25  textbook reimbursement grant for coursework satisfactorily 
 64.26  completed by the person is limited to 100 percent of the cost of 
 64.27  tuition for post-secondary courses at a Minnesota public 
 64.28  educational institution. 
 64.29     Paragraph (b) notwithstanding, a person is no longer 
 64.30  eligible for a grant under this subdivision once the person has 
 64.31  received grants under this subdivision for the equivalent of 208 
 64.32  quarter credits or 144 semester credits of coursework. 
 64.33     (d) Tuition and textbook reimbursement grants received 
 64.34  under this subdivision may not be considered by the Minnesota 
 64.35  higher education services office or by any other state board, 
 64.36  commission, or entity in determining a person's eligibility for 
 65.1   a scholarship or grant-in-aid under sections 136A.095 to 
 65.2   136A.1311. 
 65.3      (e) If a member fails to complete a term of enlistment 
 65.4   during which a tuition and textbook reimbursement grant was 
 65.5   paid, the adjutant general may seek to recoup a prorated amount 
 65.6   as determined by the adjutant general. 
 65.7      (f) The adjutant general shall maintain records and report 
 65.8   any findings to the legislature by March 1, 2003, on the impact 
 65.9   of increasing the reimbursement amounts under paragraph (c) 
 65.10  during the period July 1, 2001, through December 31, 2002. 
 65.11     (g) This paragraph, paragraph (f), and the amendments made 
 65.12  by this act to paragraph (c) expire June 30, 2003. 
 65.13     Sec. 65.  Minnesota Statutes 2000, section 193.144, 
 65.14  subdivision 6, is amended to read: 
 65.15     Subd. 6.  [DISPOSAL OF UNUSED SITE.] In case any land 
 65.16  acquired for armory site purposes hereunder has been donated to 
 65.17  such corporation or to the state of Minnesota by such county or 
 65.18  municipality or by other governmental agency except the state, 
 65.19  and in case such land or any part thereof shall thereafter not 
 65.20  be used for armory purposes for a continuous period of more than 
 65.21  ten years, not including the period of any war or other 
 65.22  emergency in which the armed forces of the state may be engaged, 
 65.23  the county or municipality may provide written notice to the 
 65.24  adjutant general and, if the property is not used for armory 
 65.25  purposes within one year from the notice, the adjutant general 
 65.26  shall reconvey the property to the donor county or 
 65.27  municipality.  The adjutant general may reconvey the property in 
 65.28  less than ten years, if the adjutant general determines that the 
 65.29  corporation or the state has no further interest in the property.
 65.30     Sec. 66.  Minnesota Statutes 2000, section 193.145, 
 65.31  subdivision 4, is amended to read: 
 65.32     Subd. 4.  [PAYMENTS BY ADJUTANT GENERAL.] Whether or not 
 65.33  bonds are issued, the adjutant general is hereby authorized to 
 65.34  pay to such corporation, out of any moneys which may from time 
 65.35  to time be appropriated to and for the military department and 
 65.36  not appropriated or set apart for any other specific purpose, 
 66.1   the sum of not less than $3,000 per year for each unit of the 
 66.2   national guard quartered in such armory when only one such unit 
 66.3   is so quartered, and the sum of not less than $2,000 per year 
 66.4   for each additional unit when more than one such unit is so 
 66.5   quartered, and may bind the office of the adjutant general, both 
 66.6   currently and in the future, by agreement to such corporation to 
 66.7   make such payments in a specific amount or amounts out of such 
 66.8   appropriations for a period of not more than 40 years. 
 66.9      Sec. 67.  Minnesota Statutes 2000, section 193.148, is 
 66.10  amended to read: 
 66.11     193.148 [CONVEYANCE TO STATE.] 
 66.12     When payment has been made of all indebtedness incurred by 
 66.13  such corporation or of all funds spent by the corporation 
 66.14  incident to the procurement, erection, equipment, and operation 
 66.15  of any armory built under the provisions of sections 193.141 to 
 66.16  193.149, including the payment in full of the principal and 
 66.17  interest of all bonds issued by such corporation to cover the 
 66.18  cost of such armory or the full repayment of any commission 
 66.19  funds expended for the construction of such armory, such 
 66.20  corporation shall transfer and convey such armory building and 
 66.21  the site thereof to the state of Minnesota, for military 
 66.22  purposes, to be administered as are other state-owned armories.  
 66.23     Any unencumbered balance then held by the commission 
 66.24  accruing to such armory shall be retained to be applied to the 
 66.25  future maintenance, repair, and equipment of armories. 
 66.26     Sec. 68.  Minnesota Statutes 2000, section 197.75, 
 66.27  subdivision 1, is amended to read: 
 66.28     Subdivision 1.  [BENEFITS; ELIGIBILITY.] The commissioner 
 66.29  of veterans affairs shall spend a biennial appropriation for 
 66.30  tuition of veterans, and for tuition, fees, board, room, books 
 66.31  and supplies of the children of veterans who have died as a 
 66.32  result of their service in the armed forces of the United States 
 66.33  as determined by the United States Veterans Administration or 
 66.34  other instrumentality of the United States, in the University of 
 66.35  Minnesota, a state university, a community college, a technical 
 66.36  college, or any other university of higher learning within the 
 67.1   state accredited by the North Central Association of Colleges 
 67.2   and Secondary Schools, a law college approved by the supreme 
 67.3   court, a nursing school approved by the state board of nursing, 
 67.4   or in a trade, business, or vocational school in the state 
 67.5   approved by the state department of children, families, and 
 67.6   learning, or in a theological seminary, for any course which 
 67.7   such veteran or child may elect.  Not more than ~~$350~~ $750 shall 
 67.8   be expended for the benefit of any individual veteran, and not 
 67.9   more than ~~$350~~ $750 in any fiscal year shall be expended for the 
 67.10  benefit of any child under this section, and the need for the 
 67.11  benefit shall be established and determined by the commissioner 
 67.12  of veterans affairs.  No child of any veteran shall make 
 67.13  application for the benefits provided in this section unless the 
 67.14  child resided in Minnesota for at least two years immediately 
 67.15  prior to the date of the application.  Children of veterans 
 67.16  eligible for benefits according to this section shall be 
 67.17  admitted to state institutions of university grade free of 
 67.18  tuition until they receive a bachelors or equivalent degree.  
 67.19  Payments of benefits shall be made directly to the institution 
 67.20  in which the course of instruction is given or to the individual 
 67.21  on forms prescribed by the commissioner. 
 67.22     Sec. 69.  Minnesota Statutes 2000, section 197.75, 
 67.23  subdivision 2, is amended to read: 
 67.24     Subd. 2.  [LIMITATIONS.] The benefits in subdivision 1 are 
 67.25  not available to a veteran who is entitled to the same or 
 67.26  similar benefits under a law or regulation of the United States, 
 67.27  ~~with the exceptions in paragraphs (a) and (b).~~ 
 67.28     ~~(a)~~ except that a veteran who has been eligible for and has 
 67.29  used up the benefits the veteran is entitled to under the laws 
 67.30  of the United States is entitled to the benefits provided for by 
 67.31  subdivision 1. 
 67.32     ~~(b) A veteran who has had less than ten years of~~ 
 67.33  ~~eligibility for educational assistance under federal law because~~ 
 67.34  ~~of the December 31, 1989, delimiting date and who has lost more~~ 
 67.35  ~~than four months of that eligibility is entitled to the benefits~~ 
 67.36  ~~provided for by subdivision 1.~~ 
 68.1      Sec. 70.  Minnesota Statutes 2000, section 214.09, 
 68.2   subdivision 3, as amended by Laws 2001, chapter 61, section 3, 
 68.3   is amended to read: 
 68.4      Subd. 3.  [COMPENSATION.] (a) Members of the boards may be 
 68.5   compensated at the rate of $55 a day spent on board activities, 
 68.6   when authorized by the board, plus expenses in the same manner 
 68.7   and amount as authorized by the commissioner's plan adopted 
 68.8   under section 43A.18, subdivision 2.  Members who, as a result 
 68.9   of time spent attending board meetings, incur child care 
 68.10  expenses that would not otherwise have been incurred, may be 
 68.11  reimbursed for those expenses upon board authorization.  
 68.12     (b) Members who are state employees or employees of the 
 68.13  political subdivisions of the state must not receive the daily 
 68.14  payment for activities that occur during working hours for which 
 68.15  they are also compensated by the state or political subdivision. 
 68.16  However, a state or political subdivision employee may receive 
 68.17  the daily payment if the employee uses vacation time or 
 68.18  compensatory time accumulated in accordance with a collective 
 68.19  bargaining agreement or compensation plan for board activity.  
 68.20  Members who are state employees or employees of the political 
 68.21  subdivisions of the state may receive the expenses provided for 
 68.22  in this subdivision unless the expenses are reimbursed by 
 68.23  another source.  Members who are state employees or employees of 
 68.24  political subdivisions of the state may be reimbursed for child 
 68.25  care expenses only for time spent on board activities that are 
 68.26  outside their working hours. 
 68.27     (c) Each board must adopt internal standards prescribing 
 68.28  what constitutes a day spent on board activities for purposes of 
 68.29  making daily payments under this subdivision. 
 68.30     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
 68.31  and applies to service on or after that date. 
 68.32     Sec. 71.  [240A.13] [SOCCER FIELD DEVELOPMENT.] 
 68.33     Subdivision 1.  [GRANTS.] The commission may make matching 
 68.34  grants to political subdivisions of the state to develop new 
 68.35  soccer fields for amateur athletics.  In awarding grants, the 
 68.36  commission shall give priority to proposals from multiple 
 69.1   applicants.  To the extent possible, over time, the commission 
 69.2   shall disperse grants equally among the state's congressional 
 69.3   districts. 
 69.4      Subd. 2.  [MATCHING CRITERIA.] Each grant for soccer field 
 69.5   development under this section must be matched by recipient 
 69.6   communities or institutions in accordance with this 
 69.7   subdivision.  A matching contribution may include an in-kind 
 69.8   contribution of land; access roadways and access roadway 
 69.9   improvements; and necessary utility services, landscaping, and 
 69.10  parking.  The first $20,000 of a grant must be matched equally 
 69.11  by the recipient.  The portion of a grant that is more than 
 69.12  $20,000 but not more than $75,000 must be matched by the 
 69.13  recipient at a rate double the amount of that portion of the 
 69.14  grant.  The portion of a grant that is more than $75,000 must be 
 69.15  matched by the recipient at a rate of three times the amount of 
 69.16  that portion of the grant. 
 69.17     Sec. 72.  Minnesota Statutes 2000, section 270A.07, 
 69.18  subdivision 1, is amended to read: 
 69.19     Subdivision 1.  [NOTIFICATION REQUIREMENT.] Any claimant 
 69.20  agency, seeking collection of a debt through setoff against a 
 69.21  refund due, shall submit to the commissioner information 
 69.22  indicating the amount of each debt and information identifying 
 69.23  the debtor, as required by section 270A.04, subdivision 3.  
 69.24     For each setoff of a debt against a refund due, the 
 69.25  commissioner shall charge a fee of $10.  The proceeds of fees 
 69.26  shall be allocated by depositing $2.55 of each $10 fee collected 
 69.27  into a department of revenue recapture revolving fund, and 
 69.28  depositing the remaining balance into the general fund.  The 
 69.29  sums deposited into the revolving fund are appropriated to the 
 69.30  commissioner for the purpose of administering the Revenue 
 69.31  Recapture Act. 
 69.32     The claimant agency shall notify the commissioner when a 
 69.33  debt has been satisfied or reduced by at least $200 within 30 
 69.34  days after satisfaction or reduction. 
 69.35     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue 
 69.36  recapture fees collected on or after July 1, 2001. 
 70.1      Sec. 73.  Minnesota Statutes 2000, section 317A.123, 
 70.2   subdivision 1, is amended to read: 
 70.3      Subdivision 1.  [STATEMENT.] A corporation may change its 
 70.4   registered office, designate or change its registered agent, or 
 70.5   state a change in the name of its registered agent, by filing 
 70.6   with the secretary of state a statement containing:  
 70.7      (1) the name of the corporation; 
 70.8      (2) if the address of its registered office is to be 
 70.9   changed, the new address of its registered office; 
 70.10     (3) if its registered agent is to be designated or changed, 
 70.11  the name of its new registered agent; 
 70.12     (4) if the name of its registered agent is to be changed, 
 70.13  the name of its registered agent as changed; 
 70.14     (5) a statement that the address of its registered office 
 70.15  and the address of the office of its registered agent, as 
 70.16  changed, will be identical; and 
 70.17     (6) a statement that the change of registered office or 
 70.18  registered agent was authorized by resolution approved by the 
 70.19  board. 
 70.20     The statement need not be accompanied by a filing fee if 
 70.21  the statement is being filed only to change the address of the 
 70.22  registered office. 
 70.23     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 70.24     Sec. 74.  Minnesota Statutes 2000, section 317A.827, 
 70.25  subdivision 2, is amended to read: 
 70.26     Subd. 2.  [REINSTATEMENT.] A corporation dissolved under 
 70.27  section 317A.823 may retroactively reinstate its corporate 
 70.28  existence by filing a single annual registration ~~and paying a~~ 
 70.29  ~~$25 fee~~.  Filing the annual registration with the secretary of 
 70.30  state:  
 70.31     (1) returns the corporation to active status as of the date 
 70.32  of the dissolution; 
 70.33     (2) validates contracts or other acts within the authority 
 70.34  of the articles, and the corporation is liable for those 
 70.35  contracts or acts; and 
 70.36     (3) restores to the corporation all assets and rights of 
 71.1   the corporation and its members to the extent they were held by 
 71.2   the corporation and its members before the dissolution occurred, 
 71.3   except to the extent that assets or rights were affected by acts 
 71.4   occurring after the dissolution or sold or otherwise distributed 
 71.5   after that time. 
 71.6      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 71.7   following final enactment. 
 71.8      Sec. 75.  Minnesota Statutes 2000, section 349.165, 
 71.9   subdivision 1, is amended to read: 
 71.10     Subdivision 1.  [PREMISES PERMIT REQUIRED; APPLICATION.] A 
 71.11  licensed organization may not conduct lawful gambling at any 
 71.12  site unless it has first obtained from the board a premises 
 71.13  permit for the site.  The board shall prescribe a form for 
 71.14  permit applications, and each application for a permit must be 
 71.15  submitted on a separate form.  ~~A~~ The premises permit issued by 
 71.16  the board ~~is valid for two years~~ runs concurrently with the 
 71.17  license of the organization unless the premises permit is 
 71.18  suspended, revoked, or voluntarily terminated by the 
 71.19  organization.  The board may by rule limit the number of 
 71.20  premises permits that may be issued to an organization. 
 71.21     Sec. 76.  Minnesota Statutes 2000, section 349.165, 
 71.22  subdivision 3, is amended to read: 
 71.23     Subd. 3.  [FEES.] (a) The board may issue four classes of 
 71.24  premises permits corresponding to the classes of licenses 
 71.25  authorized under section 349.16, subdivision 6.  The fee for 
 71.26  each class of permit is: 
 71.27     (1) $400 for a class A permit; 
 71.28     (2) $250 for a class B permit; 
 71.29     (3) $200 for a class C permit; and 
 71.30     (4) $150 for a class D permit. 
 71.31     (b) If a premises permit is issued during the second year 
 71.32  of an organization's license, the fee for each class of permit 
 71.33  is: 
 71.34     (1) $200 for a class A permit; 
 71.35     (2) $125 for a class B permit; 
 71.36     (3) $100 for a class C permit; and 
 72.1      (4) $75 for a class D permit. 
 72.2      Sec. 77.  Minnesota Statutes 2000, section 357.18, 
 72.3   subdivision 3, is amended to read: 
 72.4      Subd. 3.  [SURCHARGE.] In addition to the fees imposed in 
 72.5   subdivision 1, a ~~$4.50~~ $5 surcharge shall be collected:  on each 
 72.6   fee charged under subdivision 1, clauses (1) and (6), and for 
 72.7   each abstract certificate under subdivision 1, clause (4).  
 72.8   Fifty cents of each surcharge shall be retained by the county to 
 72.9   cover its administrative costs, 50 cents shall be appropriated 
 72.10  to the legislative coordinating commission for the task force on 
 72.11  electronic real estate recording created by Laws 2000, chapter 
 72.12  391, and $4 shall be paid to the state treasury and credited to 
 72.13  the general fund. 
 72.14     <b>[EFFECTIVE DATE.]</b> This section is effective only between 
 72.15  August 1, 2001, and June 30, 2003. 
 72.16     Sec. 78.  Minnesota Statutes 2000, section 403.11, 
 72.17  subdivision 1, is amended to read: 
 72.18     Subdivision 1.  [EMERGENCY TELEPHONE SERVICE FEE.] (a) Each 
 72.19  customer of a telephone company or communications carrier that 
 72.20  provides service capable of originating a 911 emergency 
 72.21  telephone call is assessed a fee to cover the costs of ongoing 
 72.22  maintenance and related improvements for trunking and central 
 72.23  office switching equipment for minimum 911 emergency telephone 
 72.24  service, plus administrative and staffing costs of the 
 72.25  department of administration related to managing the 911 
 72.26  emergency telephone service program.  Recurring charges by a 
 72.27  public utility providing telephone service for updating the 
 72.28  information required by section 403.07, subdivision 3, must be 
 72.29  paid by the commissioner of administration if the utility is 
 72.30  included in an approved 911 plan and the charges have been 
 72.31  certified and approved under subdivision 3.  The commissioner of 
 72.32  administration shall transfer an amount equal to two cents a 
 72.33  month from the fee assessed under this section on cellular and 
 72.34  other nonwire access services to the commissioner of public 
 72.35  safety for the purpose of offsetting the costs, including 
 72.36  administrative and staffing costs, incurred by the state patrol 
 73.1   division of the department of public safety in handling 911 
 73.2   emergency calls made from cellular phones.  Money remaining in 
 73.3   the 911 emergency telephone service account after all other 
 73.4   obligations are paid must not cancel and is carried forward to 
 73.5   subsequent years and may be appropriated from time to time to 
 73.6   the commissioner of administration to provide financial 
 73.7   assistance to counties for the improvement of local emergency 
 73.8   telephone services.  The improvements may include providing 
 73.9   access to minimum 911 service for telephone service subscribers 
 73.10  currently without access and upgrading existing 911 service to 
 73.11  include automatic number identification, local location 
 73.12  identification, automatic location identification, and other 
 73.13  improvements specified in revised county 911 plans approved by 
 73.14  the department. 
 73.15     (b) The fee ~~may not be less than eight cents nor more than~~ 
 73.16  ~~30~~ is 27 cents a month for each customer access line or other 
 73.17  basic access service, including trunk equivalents as designated 
 73.18  by the public utilities commission for access charge purposes 
 73.19  and including cellular and other nonwire access services.  The 
 73.20  fee must be the same for all customers.  
 73.21     (c) The fee must be collected by each company or carrier 
 73.22  providing service subject to the fee.  Fees are payable to and 
 73.23  must be submitted to the commissioner of administration monthly 
 73.24  before the 25th of each month following the month of collection, 
 73.25  except that fees may be submitted quarterly if less than $250 a 
 73.26  month is due, or annually if less than $25 a month is due.  
 73.27  Receipts must be deposited in the state treasury and credited to 
 73.28  a 911 emergency telephone service account in the special revenue 
 73.29  fund.  The money in the account may only be used for 911 
 73.30  telephone services as provided in paragraph (a).  
 73.31     (d) ~~The commissioner of administration, with the approval~~ 
 73.32  ~~of the commissioner of finance, shall establish the amount of~~ 
 73.33  ~~the fee within the limits specified and inform the companies and~~ 
 73.34  ~~carriers of the amount to be collected.  Companies and carriers~~ 
 73.35  ~~must be given a minimum of 45 days' notice of fee changes.~~ 
 73.36     ~~(e)~~ This subdivision does not apply to customers of a 
 74.1   telecommunications carrier as defined in section 237.01, 
 74.2   subdivision 6. 
 74.3      Sec. 79.  Minnesota Statutes 2000, section 473.13, is 
 74.4   amended by adding a subdivision to read: 
 74.5      Subd. 1b.  [REPORT ON CONSULTANTS.] The annual budget must 
 74.6   list by contract or project, expenditures for consultants and 
 74.7   professional, technical, and other similar services for the 
 74.8   preceding fiscal year and those proposed or anticipated in the 
 74.9   next year.  The council shall consult with the state auditor and 
 74.10  the legislative auditor on how to coherently and effectively 
 74.11  communicate in the budget information on professional services 
 74.12  contracts, including a detailed description of the: 
 74.13     (1) methods the council used to obtain consultant services; 
 74.14     (2) criteria used by the council to award the contract; 
 74.15     (3) number of consultants who sought the contract; 
 74.16     (4) total cost of the contract; 
 74.17     (5) duration of the contract; and 
 74.18     (6) source of the funds used to pay for the contract. 
 74.19     Sec. 80.  [473.246] [LEGISLATIVE COMMISSION ON METROPOLITAN 
 74.20  GOVERNMENT; REVIEW.] 
 74.21     The metropolitan council shall submit to the legislative 
 74.22  commission on metropolitan government information on the 
 74.23  council's tax rates and dollar amounts levied for the current 
 74.24  year, proposed property tax rates and levies, operating and 
 74.25  capital budgets, work program, capital improvement program, and 
 74.26  any other information requested by the commission, for review by 
 74.27  the legislative commission, as provided in section 3.99. 
 74.28     Sec. 81.  Minnesota Statutes 2000, section 517.08, 
 74.29  subdivision 1b, is amended to read: 
 74.30     Subd. 1b.  [TERM OF LICENSE; FEE; PREMARITAL EDUCATION.] 
 74.31  (a) The court administrator shall examine upon oath the party 
 74.32  applying for a license relative to the legality of the 
 74.33  contemplated marriage.  If at the expiration of a five-day 
 74.34  period, on being satisfied that there is no legal impediment to 
 74.35  it, including the restriction contained in section 259.13, the 
 74.36  court administrator shall issue the license, containing the full 
 75.1   names of the parties before and after marriage, and county and 
 75.2   state of residence, with the district court seal attached, and 
 75.3   make a record of the date of issuance.  The license shall be 
 75.4   valid for a period of six months.  In case of emergency or 
 75.5   extraordinary circumstances, a judge of the district court of 
 75.6   the county in which the application is made, may authorize the 
 75.7   license to be issued at any time before the expiration of the 
 75.8   five days.  Except as provided in paragraph (b), the court 
 75.9   administrator shall collect from the applicant a fee of $70 for 
 75.10  administering the oath, issuing, recording, and filing all 
 75.11  papers required, and preparing and transmitting to the state 
 75.12  registrar of vital statistics the reports of marriage required 
 75.13  by this section.  If the license should not be used within the 
 75.14  period of six months due to illness or other extenuating 
 75.15  circumstances, it may be surrendered to the court administrator 
 75.16  for cancellation, and in that case a new license shall issue 
 75.17  upon request of the parties of the original license without 
 75.18  fee.  A court administrator who knowingly issues or signs a 
 75.19  marriage license in any manner other than as provided in this 
 75.20  section shall pay to the parties aggrieved an amount not to 
 75.21  exceed $1,000. 
 75.22     (b) The marriage license fee for parties who have completed 
 75.23  at least 12 hours of premarital education is $20.  In order to 
 75.24  qualify for the reduced fee, the parties must submit a signed 
 75.25  and dated statement from the person who provided the premarital 
 75.26  education confirming that it was received.  The premarital 
 75.27  education must be provided by a licensed or ordained minister or 
 75.28  the minister's designee, a person authorized to solemnize 
 75.29  marriages under section 517.18, or a person authorized to 
 75.30  practice marriage and family therapy under section 148B.33.  The 
 75.31  education must include the use of a premarital inventory and the 
 75.32  teaching of communication and conflict management skills.  
 75.33     (c) The statement from the person who provided the 
 75.34  premarital education under paragraph (b) must be in the 
 75.35  following form:  
 75.36     "I, (name of educator), confirm that (names of both 
 76.1   parties) received at least 12 hours of premarital education that 
 76.2   included the use of a premarital inventory and the teaching of 
 76.3   communication and conflict management skills.  I am a licensed 
 76.4   or ordained minister, a person authorized to solemnize marriages 
 76.5   under Minnesota Statutes, section 517.18, or a person licensed 
 76.6   to practice marriage and family therapy under Minnesota 
 76.7   Statutes, section 148B.33." 
 76.8      The names of the parties in the educator's statement must 
 76.9   be identical to the legal names of the parties as they appear in 
 76.10  the marriage license application.  Notwithstanding section 
 76.11  138.17, the educator's statement must be retained for seven 
 76.12  years, after which time it may be destroyed.  
 76.13     ~~(b)~~ (d) If section 259.13 applies to the request for a 
 76.14  marriage license, the court administrator shall grant the 
 76.15  marriage license without the requested name change.  
 76.16  Alternatively, the court administrator may delay the granting of 
 76.17  the marriage license until the party with the conviction: 
 76.18     (1) certifies under oath that 30 days have passed since 
 76.19  service of the notice for a name change upon the prosecuting 
 76.20  authority and, if applicable, the attorney general and no 
 76.21  objection has been filed under section 259.13; or 
 76.22     (2) provides a certified copy of the court order granting 
 76.23  it.  The parties seeking the marriage license shall have the 
 76.24  right to choose to have the license granted without the name 
 76.25  change or to delay its granting pending further action on the 
 76.26  name change request. 
 76.27     Sec. 82.  Minnesota Statutes 2000, section 517.08, 
 76.28  subdivision 1c, as amended by Laws 2001, chapter 7, section 84, 
 76.29  is amended to read: 
 76.30     Subd. 1c.  [DISPOSITION OF LICENSE FEE.] (a) Of the 
 76.31  marriage license fee collected pursuant to subdivision 
 76.32  1b, paragraph (a), $15 must be retained by the county.  The 
 76.33  court administrator ~~shall~~ must pay $55 to the state treasurer to 
 76.34  be deposited as follows: 
 76.35     (1) $50 in the general fund; 
 76.36     (2) $3 in the special revenue fund to be appropriated to 
 77.1   the commissioner of children, families, and learning for 
 77.2   parenting time centers under section 119A.37; and 
 77.3      (3) $2 in the special revenue fund to be appropriated to 
 77.4   the commissioner of health for developing and implementing the 
 77.5   MN ENABL program under section 145.9255. 
 77.6      (b) Of the $20 fee under subdivision 1b, paragraph (b), $15 
 77.7   must be retained by the county.  The state court administrator 
 77.8   must pay $5 to the state treasurer to be distributed as provided 
 77.9   in paragraph (a), clauses (2) and (3). 
 77.10     Sec. 83.  Minnesota Statutes 2000, section 574.26, 
 77.11  subdivision 2, is amended to read: 
 77.12     Subd. 2.  [TERMS.] Except as provided in sections 574.263 
 77.13  and 574.264 or if the amount of the contract is ~~$10,000~~ $75,000 
 77.14  or less, a contract with a public body for the doing of any 
 77.15  public work is not valid unless the contractor gives (1) a 
 77.16  performance bond to the public body with whom the contractor 
 77.17  entered into the contract, for the use and benefit of the public 
 77.18  body to complete the contract according to its terms, and 
 77.19  conditioned on saving the public body harmless from all costs 
 77.20  and charges that may accrue on account of completing the 
 77.21  specified work, and (2) a payment bond for the use and benefit 
 77.22  of all persons furnishing labor and materials engaged under, or 
 77.23  to perform the contract, conditioned for the payment, as they 
 77.24  become due, of all just claims for the labor and materials.  
 77.25  Reasonable attorneys' fees, costs, and disbursements may be 
 77.26  awarded in an action to enforce claims under the act if the 
 77.27  action is successfully maintained or successfully appealed.  
 77.28     Sec. 84.  Minnesota Statutes 2000, section 645.44, is 
 77.29  amended by adding a subdivision to read: 
 77.30     Subd. 15a.  [MUST.] "Must" is mandatory. 
 77.31     Sec. 85.  Laws 1997, chapter 202, article 2, section 61, as 
 77.32  amended by Laws 1999, chapter 250, article 1, section 106, is 
 77.33  amended to read: 
 77.34     Sec. 61.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
 77.35     Appointing authorities in state government may allow each 
 77.36  employee to take an unpaid leave of absence for up to 160 hours 
 78.1   during the period ending June 30, ~~2001~~ 2005.  Each appointing 
 78.2   authority approving such a leave shall allow the employee to 
 78.3   continue accruing vacation and sick leave, be eligible for paid 
 78.4   holidays and insurance benefits, accrue seniority, and accrue 
 78.5   service credit in state retirement plans permitting service 
 78.6   credits for authorized leaves of absence as if the employee had 
 78.7   actually been employed during the time of the leave.  If the 
 78.8   leave of absence is for one full pay period or longer, any 
 78.9   holiday pay shall be included in the first payroll warrant after 
 78.10  return from the leave of absence.  The appointing authority 
 78.11  shall attempt to grant requests for unpaid leaves of absence 
 78.12  consistent with the need to continue efficient operation of the 
 78.13  agency.  However, each appointing authority shall retain 
 78.14  discretion to grant or refuse to grant requests for leaves of 
 78.15  absence and to schedule and cancel leaves, subject to applicable 
 78.16  provisions of collective bargaining agreements and compensation 
 78.17  plans. 
 78.18     Sec. 86.  Laws 1998, chapter 366, section 80, is amended to 
 78.19  read: 
 78.20     Sec. 80.  [SETTLEMENT DIVISION; TRANSFER OF JUDGES.] 
 78.21     The office of administrative hearings shall establish a 
 78.22  settlement division.  The workers' compensation judges at the 
 78.23  department of labor and industry, together with their support 
 78.24  staff, offices, furnishings, equipment, and supplies, are 
 78.25  transferred to the settlement division of the office of 
 78.26  administrative hearings.  Minnesota Statutes, section 15.039, 
 78.27  applies to the transfer of employees.  The settlement division 
 78.28  of the office of administrative hearings shall maintain offices 
 78.29  in either Hennepin or Ramsey county and the cities of ~~St. Paul,~~ 
 78.30  Duluth~~,~~ and Detroit Lakes.  The office of a judge in the 
 78.31  settlement division of the office of administrative hearings and 
 78.32  the support staff of the judge may be located in a building that 
 78.33  contains offices of the department of labor and industry.  The 
 78.34  seniority of a workers' compensation judge at the office of 
 78.35  administrative hearings, after the transfer, shall be based on 
 78.36  the total length of service as a judge at either agency.  For 
 79.1   purposes of the commissioner's plan under Minnesota Statutes, 
 79.2   section 43A.18, subdivision 2, all compensation judges at the 
 79.3   office of administrative hearings shall be considered to be in 
 79.4   the same employment condition, the same organizational unit and 
 79.5   qualified for work in either division. 
 79.6      Sec. 87.  Laws 1999, chapter 250, article 1, section 12, 
 79.7   subdivision 3, as amended by Laws 2000, chapter 488, article 12, 
 79.8   section 1, subdivision 1, is amended to read: 
 79.9   Subd. 3.  Office of Technology
 79.10       5,499,000      2,707,000
 79.11  The commissioner of administration 
 79.12  shall develop and submit to the chairs 
 79.13  of the senate governmental operations 
 79.14  budget division and the house state 
 79.15  government finance committee by January 
 79.16  15, 2000, a long-range plan identifying 
 79.17  the mission and goals of the office of 
 79.18  technology.  The appropriation for the 
 79.19  second year is not available until the 
 79.20  plan has been approved by a law enacted 
 79.21  at the 2000 regular session. 
 79.22                Summary by Fund
 79.23  General               5,071,000     2,707,000
 79.24  State Government 
 79.25  Special Revenue         168,000          -0- 
 79.26  Workers'
 79.27  Compensation            260,000          -0- 
 79.28  The amounts that may be spent from this 
 79.29  appropriation for each purpose are as 
 79.30  follows: 
 79.31  (a) Administrative Services
 79.32       2,871,000      2,707,000
 79.33  $468,000 the first year and $468,000 
 79.34  the second year are for ongoing costs 
 79.35  of the North Star II project under 
 79.36  Minnesota Statutes, section 16E.07. 
 79.37  (b) One-Stop Business Licensing
 79.38  $500,000 the first year is a one-time 
 79.39  appropriation for the one-stop business 
 79.40  licensing system project under 
 79.41  Minnesota Statutes, section 16E.08.  
 79.42  The commissioner shall report on the 
 79.43  progress of this project to the chairs 
 79.44  of the legislative committees 
 79.45  responsible for this budget item by 
 79.46  January 15, 2000, and 2001. Before the 
 79.47  system is put into operation, the 
 79.48  security information technology project 
 79.49  of the commissioner of administration 
 79.50  shall perform a security audit of the 
 79.51  system and submit a report on the audit 
 80.1   to the chairs of the governmental 
 80.2   operations budget division of the 
 80.3   senate and the state government finance 
 80.4   committee of the house of 
 80.5   representatives. 
 80.6   (c) Small Agency Infrastructure 
 80.7                 Summary by Fund
 80.8   General               1,700,000          -0-  
 80.9   State Government 
 80.10  Special Revenue         168,000          -0- 
 80.11  Workers'
 80.12  Compensation            260,000          -0- 
 80.13  This appropriation is for a one-time 
 80.14  transfer to eligible small agencies for 
 80.15  the small agency infrastructure 
 80.16  project.  The commissioner of 
 80.17  administration shall determine 
 80.18  priorities for which projects should be 
 80.19  funded, except that $323,000 is for the 
 80.20  public utilities commission.  An agency 
 80.21  whose strategic plan for information 
 80.22  technology was not approved before 
 80.23  April 1, 1999, may not receive money 
 80.24  from this appropriation.  This 
 80.25  appropriation is available until June 
 80.26  30, 2003.  ~~The commissioner shall~~ 
 80.27  ~~report on the progress of this project~~ 
 80.28  ~~to the chairs of the legislative~~ 
 80.29  ~~committees responsible for this budget~~ 
 80.30  ~~item by January 15, 2000, 2001, and~~ 
 80.31  ~~2002.~~ 
 80.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 80.33  following final enactment. 
 80.34     Sec. 88.  [APPLICATION.] 
 80.35     Sections 79 and 80 apply in the counties of Anoka, Carver, 
 80.36  Dakota, Hennepin, Ramsey, Scott, and Washington.  
 80.37     Sec. 89.  [INITIAL BOARD.] 
 80.38     The initial board of Northern Technology, Inc. consists of 
 80.39  the president of Pine Technical College and one member of each 
 80.40  of the governing bodies of Carlton, Chisago, Isanti, Kanabec, 
 80.41  and Pine counties, appointed by the governing bodies.  Members 
 80.42  of the initial board must be appointed within 30 days of the 
 80.43  effective date of this act and must adopt bylaws within 30 days 
 80.44  of the appointment of the last board member appointed under this 
 80.45  section.  Any additional board members required under the bylaws 
 80.46  or Minnesota Statutes, section 116T.02, subdivision 3, must take 
 80.47  office or be appointed within 30 days after the adoption of 
 80.48  bylaws under this section. 
 81.1      Sec. 90.  [HIAWATHA AVENUE LIGHT RAIL TRANSIT COST 
 81.2   CALCULATION.] 
 81.3      (a) The office of the legislative auditor shall prepare a 
 81.4   complete accounting of all federal, state, and local costs 
 81.5   relating to the Hiawatha avenue light rail transit line.  The 
 81.6   cost accounting must include: 
 81.7      (1) planning, environmental studies, and preliminary and 
 81.8   final design and engineering for the project; 
 81.9      (2) construction and other capital costs of the light rail 
 81.10  transit line when completed; 
 81.11     (3) improvements and repairs to and reconstruction of state 
 81.12  and local streets and highways incurred and anticipated as a 
 81.13  result of the project; 
 81.14     (4) all costs of utility relocation resulting from the 
 81.15  project; 
 81.16     (5) all costs incurred by the department of transportation 
 81.17  with respect to public information and communications about the 
 81.18  project; 
 81.19     (6) construction, acquisition, or lease of park-and-ride 
 81.20  facilities that would serve project riders, including costs of 
 81.21  relocating other public facilities to make room for those 
 81.22  park-and-ride facilities; 
 81.23     (7) projected costs of connecting the Hiawatha avenue light 
 81.24  rail transit line with commuter rail facilities; 
 81.25     (8) any costs necessitated by the project and included in 
 81.26  the project budget for the reconstruction of marked trunk 
 81.27  highway No. 55, to the extent not included under clause (3); and 
 81.28     (9) all public costs relating to the acquisition of real 
 81.29  property for the line and for the purchase and development of 
 81.30  real property adjacent to the project right-of-way. 
 81.31     (b) The legislative auditor shall submit an interim report 
 81.32  of the cost accounting to the legislature by March 1, 2002, and 
 81.33  shall submit a final report to the legislature by March 1, 2003. 
 81.34     Sec. 91.  [JESSE JAMES DAYS BLEACHERS.] 
 81.35     Notwithstanding Minnesota Statutes, section 16B.616, 
 81.36  subdivisions 3 and 4, the defeat of Jesse James committee, a 
 82.1   nonprofit corporation located in Northfield, Minnesota, need not 
 82.2   provide a signed certificate of compliance with bleacher safety 
 82.3   standards before January 1, 2003, with respect to bleachers 
 82.4   erected by the committee before August 1, 1999, for use during 
 82.5   the defeat of Jesse James days celebration week.  
 82.6      Sec. 92.  [PAY EQUITY STUDY.] 
 82.7      The commissioner of employee relations shall convene a work 
 82.8   group to examine the practices and progress of the local 
 82.9   government pay equity act.  The commissioner must report the 
 82.10  findings of the group to the legislature by January 15, 2002.  
 82.11     Sec. 93.  [SHALL/MUST.] 
 82.12     The revisor of statutes, in consultation with the directors 
 82.13  of house research and senate counsel and research, must report 
 82.14  to the house of representatives and senate rules committees and 
 82.15  the legislative coordinating commission by November 1, 2001, on 
 82.16  a proposal to change "shall" to "must" in Minnesota Statutes.  
 82.17     Sec. 94.  [LOCATING STATE AGENCIES.] 
 82.18     It is the policy of the Minnesota legislature to ensure 
 82.19  that state government services are available to all people of 
 82.20  our state. 
 82.21     Therefore, the office of strategic and long-range planning, 
 82.22  in cooperation with the departments of administration and 
 82.23  finance, shall develop criteria for the proper location of state 
 82.24  agencies or parts of state agencies.  The purpose of these 
 82.25  criteria will be to evaluate the advantages and disadvantages of 
 82.26  proposals to relocate and decentralize state services and 
 82.27  facilities. 
 82.28     The office shall report its recommendations to the senate 
 82.29  finance committee, senate capital investment committee, house 
 82.30  ways and means committee, and house capital investment committee 
 82.31  by January 15, 2002. 
 82.32     Sec. 95.  [RATIFICATIONS.] 
 82.33     Subdivision 1.  [UNREPRESENTED MANAGERS; MINNESOTA STATE 
 82.34  COLLEGES AND UNIVERSITIES.] The amendments to the plan for 
 82.35  administrators of the Minnesota state colleges and universities, 
 82.36  approved by the legislative coordinating commission subcommittee 
 83.1   on employee relations on July 21, 2000, are ratified. 
 83.2      Subd. 2.  [SALARIES FOR HEADS OF STATE AGENCIES.] The 
 83.3   proposal to increase the salaries of certain heads of state 
 83.4   agencies, approved by the legislative coordinating commission 
 83.5   subcommittee on employee relations on July 21, 2000, is ratified.
 83.6      Subd. 3.  [ENGINEERS.] The arbitration award and labor 
 83.7   agreement between the state of Minnesota and the Minnesota 
 83.8   government engineers council, approved by the legislative 
 83.9   coordinating commission subcommittee on employee relations on 
 83.10  September 8, 2000, are ratified. 
 83.11     Subd. 4.  [SALARIES FOR CERTAIN HEADS OF STATE 
 83.12  AGENCIES.] The proposals to increase the salaries of the 
 83.13  directors of the state board of investment and the teachers 
 83.14  retirement association, as approved by the legislative 
 83.15  coordinating commission subcommittee on employee relations on 
 83.16  September 8, 2000, are ratified. 
 83.17     <b>[EFFECTIVE DATE.]</b> This section is effective retroactively 
 83.18  to May 21, 2001. 
 83.19     Sec. 96.  [REVISOR'S INSTRUCTION.] 
 83.20     The revisor of statutes shall renumber Minnesota Statutes, 
 83.21  section 16B.88, as Minnesota Statutes, section 4.50. 
 83.22     Sec. 97.  [TRANSFERS.] 
 83.23     The office of citizenship and volunteer services is 
 83.24  transferred from the department of administration to the office 
 83.25  of the governor according to Minnesota Statutes, section 15.039. 
 83.26     Sec. 98.  [WORK PLAN APPROPRIATIONS.] 
 83.27     (a) $650,000 is appropriated from the surcharge collected 
 83.28  under Minnesota Statutes, section 357.18, subdivision 3, to the 
 83.29  legislative coordinating commission, to be made available to the 
 83.30  real estate task force established in accordance with Laws 2000, 
 83.31  chapter 391, for the expenses of the task force in carrying out 
 83.32  the work plan as described in the January 15, 2001, task force 
 83.33  report to the legislature.  This appropriation is available 
 83.34  until June 30, 2003, and is to be administered at the direction 
 83.35  of the chair of the task force, subject to the prior approval of 
 83.36  the task force. 
 84.1      (b) $500,000 is appropriated from the surcharge collected 
 84.2   under Minnesota Statutes, section 357.18, subdivision 3, to the 
 84.3   legislative coordinating commission, to be made available to the 
 84.4   task force for the development and implementation of pilot 
 84.5   electronic real estate projects in diverse counties as described 
 84.6   in the January 15, 2001, task force report to the legislature.  
 84.7   This appropriation is available until June 30, 2003. 
 84.8      Sec. 99.  [LEGISLATIVE COORDINATING COMMISSION; DUTIES; 
 84.9   APPROPRIATION.] 
 84.10     (a) The real estate task force established under Laws 2000, 
 84.11  chapter 391, may contract with the legislative coordinating 
 84.12  commission for the provision of administrative services to, the 
 84.13  preparation of requests for proposal, or the disbursement of 
 84.14  funds for the payment of vendors, salaries, and other expenses 
 84.15  of the task force. 
 84.16     (b) $50,000 is appropriated from the surcharge collected 
 84.17  under Minnesota Statutes, section 357.18, subdivision 3, to the 
 84.18  legislative coordinating commission for the purpose of paragraph 
 84.19  (a). 
 84.20     Sec. 100.  [DONATIONS.] 
 84.21     The real estate task force established under Laws 2000, 
 84.22  chapter 391, may accept donations of money or resources, 
 84.23  including loaned employees or other services.  The donations 
 84.24  must be under the sole control of the task force. 
 84.25     Sec. 101.  [LEGISLATIVE AND EXECUTIVE BRANCH ASSISTANCE.] 
 84.26     Whenever possible, legislative employees and agencies in 
 84.27  the executive branch shall assist the real estate task force 
 84.28  established under Laws 2000, chapter 391, in carrying out its 
 84.29  duties. 
 84.30     Sec. 102.  [REPEALER.] 
 84.31     (a) Minnesota Statutes 2000, sections 16E.08; 129D.06; and 
 84.32  179A.07, subdivision 7, are repealed. 
 84.33     (b) Minnesota Statutes 2000, sections 16A.67; 16A.6701; and 
 84.34  246.18, subdivision 7, are repealed. 
 84.35     (c) Minnesota Statutes 2000, section 43A.18, subdivision 5, 
 84.36  is repealed. 
 85.1      <b>[EFFECTIVE DATE.]</b> Paragraph (b) of this section is 
 85.2   effective December 31, 2001.  Paragraph (c) of this section is 
 85.3   effective the day following final enactment. 
 85.4      Sec. 103.  [EFFECTIVE DATE.] 
 85.5      Unless otherwise specified, this article is effective July 
 85.6   1, 2001. 
 85.7                              ARTICLE 3  
 85.8                  VARIOUS ADMINISTRATIVE PROVISIONS
 85.9      Section 1.  Minnesota Statutes 2000, section 3A.03, 
 85.10  subdivision 2, is amended to read: 
 85.11     Subd. 2.  [REFUND.] ~~(1)~~ (a) Any ~~person~~ former member who 
 85.12  has made contributions ~~pursuant to~~ under subdivision 1 and who 
 85.13  is no longer a member of the legislature is entitled to receive, 
 85.14  upon application to the director, a refund of all contributions 
 85.15  credited to the member's account with interest at an annual rate 
 85.16  of six percent compounded annually.  
 85.17     ~~(2)~~ (b) The refund of contributions as provided in clause 
 85.18  (1) terminates all rights of a former member of the legislature 
 85.19  or the survivors of the former member under this 
 85.20  chapter.  ~~Should~~ If the former member of the legislature 
 85.21  again ~~be~~ becomes a member of the legislature after having taken 
 85.22  a refund as provided ~~above~~ in paragraph (a), the member ~~shall~~ 
 85.23  must be considered a new member.  However, a new member may 
 85.24  reinstate the rights and credit for service forfeited~~,~~ 
 85.25  ~~provided~~ if the new member repays all refunds taken plus 
 85.26  interest at an annual rate of 8.5 percent compounded annually.  
 85.27     ~~(3)~~ (c) No person ~~shall~~ may be required to apply for or 
 85.28  to accept a refund. 
 85.29     Sec. 2.  Minnesota Statutes 2000, section 11A.18, 
 85.30  subdivision 7, is amended to read: 
 85.31     Subd. 7.  [PARTICIPATION AND FINANCIAL REPORTING IN FUND.] 
 85.32  (a) Each participating public retirement fund or plan which has 
 85.33  transferred money to the state board for investment in the 
 85.34  postretirement investment fund shall have an undivided 
 85.35  participation in the fund.  The participation on any valuation 
 85.36  date ~~shall~~ must be determined by adding to the participation on 
 86.1   the prior valuation date:  ~~(a)~~ (1) funds transferred in 
 86.2   accordance with subdivision 6~~, (b)~~; (2) the amount of required 
 86.3   investment income on its participation as defined in subdivision 
 86.4   9, ~~clause (1)(c)~~ paragraph (c), clause (1); and ~~(c)~~ (3) the 
 86.5   reserves for any benefit adjustment made as of the current 
 86.6   valuation date with the result adjusted for any mortality gains 
 86.7   or losses determined ~~pursuant to~~ under subdivision 11.  
 86.8      (b) The total fair market value of the postretirement fund 
 86.9   as of June 30 must be calculated in accordance with generally 
 86.10  accepted accounting principles.  The fair market value share of 
 86.11  each fund participating in the postretirement investment fund 
 86.12  must be allocated by adding to the fair market value at the 
 86.13  beginning of the fiscal year:  (1) 100 percent of the funds 
 86.14  transferred in accordance with subdivision 6; and (2) a pro rata 
 86.15  distribution of unrealized gains or losses, based on a weighted 
 86.16  percentage of participation at the end of each month of the 
 86.17  fiscal year. 
 86.18     Sec. 3.  [13.632] [TEACHERS RETIREMENT FUND ASSOCIATION 
 86.19  DATA; CERTAIN CITIES.] 
 86.20     Subdivision 1.  [BENEFICIARY AND SURVIVOR DATA.] The 
 86.21  following data on beneficiaries and survivors of the Minneapolis 
 86.22  teachers retirement fund association, the St. Paul teachers 
 86.23  retirement fund association, and the Duluth teachers retirement 
 86.24  fund association members are private data on individuals:  home 
 86.25  address, date of birth, direct deposit number, and tax 
 86.26  withholding data. 
 86.27     Subd. 2.  [LIMITS ON DISCLOSURE.] Required disclosure of 
 86.28  data about members, survivors, and beneficiaries is limited to 
 86.29  name, gross annuity or benefit amount, and type of annuity or 
 86.30  benefit awarded. 
 86.31     Sec. 4.  Minnesota Statutes 2000, section 352.01, 
 86.32  subdivision 2a, is amended to read: 
 86.33     Subd. 2a.  [INCLUDED EMPLOYEES.] (a) "State employee" 
 86.34  includes: 
 86.35     (1) employees of the Minnesota historical society; 
 86.36     (2) employees of the state horticultural society; 
 87.1      (3) employees of the Disabled American Veterans, Department 
 87.2   of Minnesota, Veterans of Foreign Wars, Department of Minnesota, 
 87.3   if employed before July 1, 1963; 
 87.4      (4) employees of the Minnesota crop improvement 
 87.5   association; 
 87.6      (5) employees of the adjutant general who are paid from 
 87.7   federal funds and who are not covered by any federal civilian 
 87.8   employees retirement system; 
 87.9      (6) employees of the Minnesota state colleges and 
 87.10  universities employed under the university or college activities 
 87.11  program; 
 87.12     (7) currently contributing employees covered by the system 
 87.13  who are temporarily employed by the legislature during a 
 87.14  legislative session or any currently contributing employee 
 87.15  employed for any special service as defined in subdivision 2b, 
 87.16  clause (8); 
 87.17     (8) employees of the armory building commission; 
 87.18     (9) employees of the legislature appointed without a limit 
 87.19  on the duration of their employment and persons employed or 
 87.20  designated by the legislature or by a legislative committee or 
 87.21  commission or other competent authority to conduct a special 
 87.22  inquiry, investigation, examination, or installation; 
 87.23     (10) trainees who are employed on a full-time established 
 87.24  training program performing the duties of the classified 
 87.25  position for which they will be eligible to receive immediate 
 87.26  appointment at the completion of the training period; 
 87.27     (11) employees of the Minnesota safety council; 
 87.28     (12) any employees on authorized leave of absence from the 
 87.29  transit operating division of the former metropolitan transit 
 87.30  commission who are employed by the labor organization which is 
 87.31  the exclusive bargaining agent representing employees of the 
 87.32  transit operating division; 
 87.33     (13) employees of the metropolitan council, metropolitan 
 87.34  parks and open space commission, metropolitan sports facilities 
 87.35  commission, metropolitan mosquito control commission, or 
 87.36  metropolitan radio board unless excluded or covered by another 
 88.1   public pension fund or plan under section 473.415, subdivision 
 88.2   3; 
 88.3      (14) judges of the tax court; 
 88.4      (15) personnel employed on June 30, 1992, by the University 
 88.5   of Minnesota in the management, operation, or maintenance of its 
 88.6   heating plant facilities, whose employment transfers to an 
 88.7   employer assuming operation of the heating plant facilities, so 
 88.8   long as the person is employed at the University of Minnesota 
 88.9   heating plant by that employer or by its successor organization; 
 88.10  and 
 88.11     (16) seasonal help in the classified service employed by 
 88.12  the department of revenue~~; and~~ 
 88.13     ~~(17) a person who renders teaching or other service for the~~ 
 88.14  ~~Minnesota state colleges and universities system and who also~~ 
 88.15  ~~renders service on a part-time basis for an employer with~~ 
 88.16  ~~employees covered by the general state employees retirement plan~~ 
 88.17  ~~of the Minnesota state retirement system, for all service with~~ 
 88.18  ~~the Minnesota state colleges and universities system, if the~~ 
 88.19  ~~person's nonteaching service comprises at least 50 percent of~~ 
 88.20  ~~the combined total salary received by the person as determined~~ 
 88.21  ~~by the chancellor of the Minnesota state colleges and~~ 
 88.22  ~~universities system or if the person is certified for general~~ 
 88.23  ~~state employees retirement plan coverage by the chancellor of~~ 
 88.24  ~~the Minnesota state colleges and universities system~~. 
 88.25     (b) Employees specified in paragraph (a), clause (15), are 
 88.26  included employees under paragraph (a) if employer and employee 
 88.27  contributions are made in a timely manner in the amounts 
 88.28  required by section 352.04.  Employee contributions must be 
 88.29  deducted from salary.  Employer contributions are the sole 
 88.30  obligation of the employer assuming operation of the University 
 88.31  of Minnesota heating plant facilities or any successor 
 88.32  organizations to that employer. 
 88.33     Sec. 5.  Minnesota Statutes 2000, section 352.01, 
 88.34  subdivision 2b, is amended to read: 
 88.35     Subd. 2b.  [EXCLUDED EMPLOYEES.] "State employee" does not 
 88.36  include: 
 89.1      (1) ~~elective state officers;~~ 
 89.2      ~~(2)~~ students employed by the University of Minnesota, or 
 89.3   the state colleges and universities, ~~and community colleges~~ 
 89.4   unless approved for coverage by the board of regents or the 
 89.5   board of trustees of the Minnesota state colleges and 
 89.6   universities, as the case may be; 
 89.7      ~~(3)~~ (2) employees who are eligible for membership in the 
 89.8   state teachers retirement association, except employees of the 
 89.9   department of children, families, and learning who have chosen 
 89.10  or may choose to be covered by the general state employees 
 89.11  retirement plan of the Minnesota state retirement system instead 
 89.12  of the teachers retirement association; 
 89.13     ~~(4)~~ (3) employees of the University of Minnesota who are 
 89.14  excluded from coverage by action of the board of regents; 
 89.15     ~~(5)~~ (4) officers and enlisted personnel in the national 
 89.16  guard and the naval militia who are assigned to permanent 
 89.17  peacetime duty and who under federal law are or are required to 
 89.18  be members of a federal retirement system; 
 89.19     ~~(6)~~ (5) election officers; 
 89.20     ~~(7)~~ (6) persons who are engaged in public work for the 
 89.21  state but who are employed by contractors when the performance 
 89.22  of the contract is authorized by the legislature or other 
 89.23  competent authority; 
 89.24     ~~(8)~~ (7) officers and employees of the senate ~~and~~, or of the 
 89.25  house of representatives, or of a legislative committee or 
 89.26  commission who are temporarily employed; 
 89.27     ~~(9)~~ (8) receivers, jurors, notaries public, and court 
 89.28  employees who are not in the judicial branch as defined in 
 89.29  section 43A.02, subdivision 25, except referees and adjusters 
 89.30  employed by the department of labor and industry; 
 89.31     ~~(10)~~ (9) patient and inmate help in state charitable, 
 89.32  penal, and correctional institutions including the Minnesota 
 89.33  veterans home; 
 89.34     ~~(11)~~ (10) persons who are employed for professional 
 89.35  services where the service is incidental to their regular 
 89.36  professional duties and whose compensation is paid on a per diem 
 90.1   basis; 
 90.2      ~~(12)~~ (11) employees of the Sibley House Association; 
 90.3      ~~(13)~~ (12) the members of any state board or commission who 
 90.4   serve the state intermittently and are paid on a per diem basis; 
 90.5   the secretary, secretary-treasurer, and treasurer of those 
 90.6   boards if their compensation is $5,000 or less per year, or, if 
 90.7   they are legally prohibited from serving more than three years; 
 90.8   and the board of managers of the state agricultural society and 
 90.9   its treasurer unless the treasurer is also its full-time 
 90.10  secretary; 
 90.11     ~~(14)~~ (13) state troopers; 
 90.12     ~~(15)~~ (14) temporary employees of the Minnesota state fair 
 90.13  who are employed on or after July 1 for a period not to extend 
 90.14  beyond October 15 of that year; and persons who are employed at 
 90.15  any time by the state fair administration for special events 
 90.16  held on the fairgrounds; 
 90.17     ~~(16)~~ (15) emergency employees who are in the classified 
 90.18  service; except that if an emergency employee, within the same 
 90.19  pay period, becomes a provisional or probationary employee on 
 90.20  other than a temporary basis, the employee shall be considered a 
 90.21  "state employee" retroactively to the beginning of the pay 
 90.22  period; 
 90.23     ~~(17)~~ (16) persons who are described in section 352B.01, 
 90.24  subdivision 2, clauses (2) to (5); 
 90.25     ~~(18)~~ (17) temporary employees in the classified service, 
 90.26  and temporary employees in the unclassified service who are 
 90.27  appointed for a definite period of not more than six months 
 90.28  and who are employed less than six months in any one-year 
 90.29  period; 
 90.30     ~~(19)~~ (18) trainee employees, except those listed in 
 90.31  subdivision 2a, clause (10); 
 90.32     ~~(20)~~ (19) persons whose compensation is paid on a fee 
 90.33  basis; 
 90.34     ~~(21)~~ (20) state employees who are employed by the board of 
 90.35  trustees of the Minnesota state colleges and universities in 
 90.36  unclassified positions enumerated in section 43A.08, subdivision 
 91.1   1, clause (9); 
 91.2      (21) state employees who in any year have credit for 12 
 91.3   months service as teachers in the public schools of the state 
 91.4   and as teachers are members of the teachers retirement 
 91.5   association or a retirement system in St. Paul, Minneapolis, or 
 91.6   Duluth; 
 91.7      (22) employees of the adjutant general who are employed on 
 91.8   an unlimited intermittent or temporary basis in the 
 91.9   classified ~~and~~ or unclassified service for the support of army 
 91.10  and air national guard training facilities; 
 91.11     (23) chaplains and nuns who are excluded from coverage 
 91.12  under the federal Old Age, Survivors, Disability, and Health 
 91.13  Insurance Program for the performance of service as specified in 
 91.14  United States Code, title 42, section 410(a)(8)(A), as amended, 
 91.15  if no irrevocable election of coverage has been made under 
 91.16  section 3121(r) of the Internal Revenue Code of 1986, as amended 
 91.17  through December 31, 1992; 
 91.18     (24) examination monitors who are employed by departments, 
 91.19  agencies, commissions, and boards to conduct examinations 
 91.20  required by law; 
 91.21     (25) persons who are appointed to serve as members of 
 91.22  fact-finding commissions or adjustment panels, arbitrators, or 
 91.23  labor referees under chapter 179; 
 91.24     (26) temporary employees who are employed for limited 
 91.25  periods under any state or federal program for training or 
 91.26  rehabilitation, including persons who are employed for limited 
 91.27  periods from areas of economic distress ~~except~~, but not 
 91.28  including skilled and supervisory personnel and persons having 
 91.29  civil service status covered by the system; 
 91.30     (27) full-time students who are employed by the Minnesota 
 91.31  historical society intermittently during part of the year and 
 91.32  full-time during the summer months; 
 91.33     (28) temporary employees~~,~~ who are appointed for not more 
 91.34  than six months, of the metropolitan council and of any of its 
 91.35  statutory boards, if the board members are appointed by the 
 91.36  metropolitan council; 
 92.1      (29) persons who are employed in positions designated by 
 92.2   the department of employee relations as student workers; 
 92.3      (30) members of trades who are employed by the successor to 
 92.4   the metropolitan waste control commission ~~with~~, who have trade 
 92.5   union pension plan coverage under a collective bargaining 
 92.6   agreement, and who are first employed after June 1, 1977; 
 92.7      (31) persons who are employed in subsidized on-the-job 
 92.8   training, work experience, or public service employment as 
 92.9   enrollees under the federal Comprehensive Employment and 
 92.10  Training Act after March 30, 1978, unless the person has as of 
 92.11  the later of March 30, 1978, or the date of employment 
 92.12  sufficient service credit in the retirement system to meet the 
 92.13  minimum vesting requirements for a deferred annuity, or the 
 92.14  employer agrees in writing on forms prescribed by the director 
 92.15  to make the required employer contributions, including any 
 92.16  employer additional contributions, on account of that person 
 92.17  from revenue sources other than funds provided under the federal 
 92.18  Comprehensive Employment and Training Act, or the person agrees 
 92.19  in writing on forms prescribed by the director to make the 
 92.20  required employer contribution in addition to the required 
 92.21  employee contribution; 
 92.22     (32) off-duty peace officers while employed by the 
 92.23  metropolitan council; 
 92.24     (33) persons who are employed as full-time police officers 
 92.25  by the metropolitan council and as police officers are members 
 92.26  of the public employees police and fire fund; 
 92.27     (34) persons who are employed as full-time firefighters by 
 92.28  the department of military affairs and as firefighters are 
 92.29  members of the public employees police and fire fund; 
 92.30     (35) foreign citizens with a work permit of less than three 
 92.31  years, or an H-1b/JV visa valid for less than three years of 
 92.32  employment, unless notice of extension is supplied which allows 
 92.33  them to work for three or more years as of the date the 
 92.34  extension is granted, in which case they are eligible for 
 92.35  coverage from the date extended; and 
 92.36     (36) persons who are employed by the board of trustees of 
 93.1   the Minnesota state colleges and universities and who elect to 
 93.2   remain members of the public employees retirement association or 
 93.3   the Minneapolis employees retirement fund, whichever applies, 
 93.4   under section 136C.75.  
 93.5      Sec. 6.  Minnesota Statutes 2000, section 352.113, 
 93.6   subdivision 4, is amended to read: 
 93.7      Subd. 4.  [MEDICAL OR PSYCHOLOGICAL EXAMINATIONS; 
 93.8   AUTHORIZATION FOR PAYMENT OF BENEFIT.] An applicant shall 
 93.9   provide medical or psychological evidence to support an 
 93.10  application for total and permanent disability.  The director 
 93.11  shall have the employee examined by at least one additional 
 93.12  licensed chiropractor, physician, or psychologist designated by 
 93.13  the medical adviser.  The chiropractors, physicians, or 
 93.14  psychologists shall make written reports to the director 
 93.15  concerning the employee's disability including medical opinions 
 93.16  as to whether the employee is permanently and totally disabled 
 93.17  within the meaning of section 352.01, subdivision 17.  The 
 93.18  director shall also obtain written certification from the 
 93.19  employer stating whether the employment has ceased or whether 
 93.20  the employee is on sick leave of absence because of a disability 
 93.21  that will prevent further service to the employer and as a 
 93.22  consequence the employee is not entitled to compensation from 
 93.23  the employer.  The medical adviser shall consider the reports of 
 93.24  the physicians, psychologists, and chiropractors and any other 
 93.25  evidence supplied by the employee or other interested parties.  
 93.26  If the medical adviser finds the employee totally and 
 93.27  permanently disabled, the adviser shall make appropriate 
 93.28  recommendation to the director in writing together with the date 
 93.29  from which the employee has been totally disabled.  The director 
 93.30  shall then determine if the disability occurred within 180 days 
 93.31  of filing the application, while still in the employment of the 
 93.32  state, and the propriety of authorizing payment of a disability 
 93.33  benefit as provided in this section.  A terminated employee may 
 93.34  apply for a disability benefit within 180 days of termination as 
 93.35  long as the disability occurred while in the employment of the 
 93.36  state.  The fact that an employee is placed on leave of absence 
 94.1   without compensation because of disability does not bar that 
 94.2   employee from receiving a disability benefit.  Unless payment of 
 94.3   a disability benefit has terminated because the employee is no 
 94.4   longer totally disabled, or because the employee has reached 
 94.5   normal retirement age as provided in this section, the 
 94.6   disability benefit shall cease with the last payment received by 
 94.7   the disabled employee or which had accrued during the lifetime 
 94.8   of the employee unless there is a spouse surviving; in that 
 94.9   event the surviving spouse is entitled to the disability benefit 
 94.10  for the calendar month in which the disabled employee died. 
 94.11     Sec. 7.  Minnesota Statutes 2000, section 352.113, 
 94.12  subdivision 6, is amended to read: 
 94.13     Subd. 6.  [REGULAR MEDICAL OR PSYCHOLOGICAL EXAMINATIONS.] 
 94.14  At least once each year during the first five years following 
 94.15  the allowance of a disability benefit to any employee, and at 
 94.16  least once in every three-year period thereafter, the director 
 94.17  may require any disabled employee to undergo a medical or 
 94.18  psychological examination.  The examination must be made at the 
 94.19  place of residence of the employee, or at any place mutually 
 94.20  agreed upon, by a physician or physicians designated by the 
 94.21  medical adviser and engaged by the director.  If any examination 
 94.22  indicates to the medical adviser that the employee is no longer 
 94.23  permanently and totally disabled, or is engaged in or can engage 
 94.24  in a gainful occupation, payments of the disability benefit by 
 94.25  the fund must be discontinued.  The payments shall discontinue 
 94.26  as soon as the employee is reinstated to the payroll following 
 94.27  sick leave, but in no case shall payment be made for more than 
 94.28  60 days after the medical adviser finds that the employee is no 
 94.29  longer permanently and totally disabled. 
 94.30     Sec. 8.  Minnesota Statutes 2000, section 352.22, 
 94.31  subdivision 8, is amended to read: 
 94.32     Subd. 8.  [REFUND SPECIFICALLY LIMITED.] If a former 
 94.33  employee covered by the system does not apply for refund within 
 94.34  five years after the last deduction was taken from salary for 
 94.35  the retirement fund, and does not have enough service to qualify 
 94.36  for a deferred annuity, accumulated contributions must be 
 95.1   credited to and become a part of the retirement fund.  If the 
 95.2   former employee returns to state service and becomes a state 
 95.3   employee covered by the system, the amount credited to the 
 95.4   retirement fund, if more than ~~$2~~ $25, ~~shall~~ must be restored to 
 95.5   the individual account.  If the amount credited to the fund is 
 95.6   over ~~$2~~ $25 and the former employee applies for refund or an 
 95.7   annuity under section 352.72, the amount must be restored to the 
 95.8   former employee's individual account and a refund made or an 
 95.9   annuity paid, whichever applies. 
 95.10     Sec. 9.  Minnesota Statutes 2000, section 352.87, 
 95.11  subdivision 4, is amended to read: 
 95.12     Subd. 4.  [NON-JOB-RELATED DISABILITY BENEFITS.] An 
 95.13  eligible member described in subdivision 1~~, who is less than 55~~ 
 95.14  ~~years of age and~~ who becomes disabled and physically or mentally 
 95.15  unfit to perform the duties of the position because of sickness 
 95.16  or injury while not engaged in covered employment~~,~~ is entitled 
 95.17  to a disability benefit amount equivalent to an annuity computed 
 95.18  under subdivision 3 assuming the member has 15 years of service 
 95.19  qualifying under this section and waiving the minimum age 
 95.20  requirement.  If the eligible member becomes disabled under this 
 95.21  subdivision with more than 15 years of service covered under 
 95.22  this section, the eligible member is entitled to a disability 
 95.23  benefit amount equivalent to an annuity computed under 
 95.24  subdivision 3 based on all years of service credited under this 
 95.25  section and waiving the minimum age requirement. 
 95.26     Sec. 10.  Minnesota Statutes 2000, section 352.87, 
 95.27  subdivision 5, is amended to read: 
 95.28     Subd. 5.  [JOB-RELATED DISABILITY BENEFITS.] An eligible 
 95.29  member defined in subdivision 1~~, who is less than 55 years of~~ 
 95.30  ~~age and~~ who becomes disabled and physically or mentally unfit to 
 95.31  perform the duties of the position because of sickness or injury 
 95.32  while engaged in covered employment~~,~~ is entitled to a disability 
 95.33  benefit amount equivalent to an annuity computed under 
 95.34  subdivision 3 assuming the member has 20 years of service 
 95.35  qualifying under this section and waiving the minimum age 
 95.36  requirement.  An eligible member who becomes disabled under this 
 96.1   subdivision with more than 20 years of service credited under 
 96.2   this section is entitled to a disability benefit amount 
 96.3   equivalent to an annuity computed under subdivision 3 based on 
 96.4   all years of service credited under this section and waiving the 
 96.5   age requirement. 
 96.6      Sec. 11.  Minnesota Statutes 2000, section 352.95, 
 96.7   subdivision 4, is amended to read: 
 96.8      Subd. 4.  [MEDICAL OR PSYCHOLOGICAL EVIDENCE.] (a) An 
 96.9   applicant shall provide medical or psychological evidence to 
 96.10  support an application for disability benefits.  The director 
 96.11  shall have the employee examined by at least one additional 
 96.12  licensed physician or psychologist designated by the medical 
 96.13  adviser.  The physicians shall make written reports to the 
 96.14  director concerning the employee's disability, including medical 
 96.15  opinions as to whether the employee is disabled within the 
 96.16  meaning of this section.  The director shall also obtain written 
 96.17  certification from the employer stating whether the employee is 
 96.18  on sick leave of absence because of a disability that will 
 96.19  prevent further service to the employer, and as a consequence 
 96.20  the employee is not entitled to compensation from the employer.  
 96.21     (b) If on considering the physicians' reports and any other 
 96.22  evidence supplied by the employee or others, the medical adviser 
 96.23  finds the employee disabled within the meaning of this section, 
 96.24  the advisor shall make appropriate recommendation to the 
 96.25  director in writing, together with the date from which the 
 96.26  employee has been disabled.  The director shall then determine 
 96.27  the propriety of authorizing payment of a disability benefit as 
 96.28  provided in this section.  
 96.29     (c) Unless payment of a disability benefit has terminated 
 96.30  because the employee is no longer disabled, or because the 
 96.31  employee has reached age ~~62~~ 65 or the five-year anniversary of 
 96.32  the effective date of the disability benefit, whichever is 
 96.33  later, the disability benefit shall cease with the last payment 
 96.34  received by the disabled employee or which had accrued during 
 96.35  the employee's lifetime.  While disability benefits are paid, 
 96.36  the director has the right at reasonable times to require the 
 97.1   disabled employee to submit proof of the continuance of the 
 97.2   disability claimed.  If any examination indicates to the medical 
 97.3   adviser that the employee is no longer disabled, the disability 
 97.4   payment must be discontinued upon reinstatement to state service 
 97.5   or within 60 days of the finding, whichever is sooner.  
 97.6      Sec. 12.  Minnesota Statutes 2000, section 352.95, 
 97.7   subdivision 5, is amended to read: 
 97.8      Subd. 5.  [RETIREMENT STATUS AT NORMAL RETIREMENT AGE.] The 
 97.9   disability benefit paid to a disabled correctional employee 
 97.10  under this section shall terminate at the end of the month in 
 97.11  which the employee reaches age ~~62~~ 65, or the five-year 
 97.12  anniversary of the effective date of the disability benefit, 
 97.13  whichever is later.  If the disabled correctional employee is 
 97.14  still disabled when the employee reaches age ~~62~~ 65, or the 
 97.15  five-year anniversary of the effective date of the disability 
 97.16  benefit, whichever is later, the employee shall be deemed to be 
 97.17  a retired employee.  If the employee had elected an optional 
 97.18  annuity under subdivision 1a, the employee shall receive an 
 97.19  annuity in accordance with the terms of the optional annuity 
 97.20  previously elected.  If the employee had not elected an optional 
 97.21  annuity under subdivision 1a, the employee may within 90 days of 
 97.22  attaining age 65 or reaching the five-year anniversary of the 
 97.23  effective date of the disability benefit, whichever is later, 
 97.24  either elect to receive a normal retirement annuity computed in 
 97.25  the manner provided in section 352.93 or elect to receive an 
 97.26  optional annuity as provided in section 352.116, subdivision 3, 
 97.27  based on the same length of service as used in the calculation 
 97.28  of the disability benefit.  Election of an optional annuity must 
 97.29  be made within 90 days before attaining age 65 or reaching the 
 97.30  five-year anniversary of the effective date of the disability 
 97.31  benefit, whichever is later.  If an optional annuity is elected, 
 97.32  the optional annuity shall begin to accrue on the first of the 
 97.33  month following the month in which the employee reaches age 65 
 97.34  or the five-year anniversary of the effective date of the 
 97.35  disability benefit, whichever is later. 
 97.36     Sec. 13.  Minnesota Statutes 2000, section 352.95, 
 98.1   subdivision 7, is amended to read: 
 98.2      Subd. 7.  [RESUMPTION OF EMPLOYMENT.] If the disabled 
 98.3   employee resumes ~~a~~ gainful ~~occupation from which earnings are~~ 
 98.4   ~~less than the salary received at the date of disability or the~~ 
 98.5   ~~salary currently paid for similar positions, or if the employee~~ 
 98.6   ~~is entitled to receive workers' compensation benefits~~ work, the 
 98.7   disability benefit must be continued in an amount which when 
 98.8   added to current earnings and workers' compensation benefits 
 98.9   does not exceed the salary ~~received at the date of disability or~~ 
 98.10  ~~the salary currently paid for similar positions, whichever is~~ 
 98.11  ~~higher, if the disability benefit in that case does not exceed~~ 
 98.12  ~~the disability benefit originally authorized and in effect~~ rate 
 98.13  of the disabled employee at the date of disability as adjusted 
 98.14  by the same percentage increase in United States average wages 
 98.15  used by social security in calculating average indexed monthly 
 98.16  earnings for the same period. 
 98.17     Sec. 14.  Minnesota Statutes 2000, section 352B.01, 
 98.18  subdivision 11, is amended to read: 
 98.19     Subd. 11.  [AVERAGE MONTHLY SALARY.] "Average monthly 
 98.20  salary" means the average of the highest monthly salaries for 
 98.21  five years of service as a member.  Average monthly salary must 
 98.22  be based upon all allowable service if this service is less than 
 98.23  five years.  It does not include any lump-sum annual leave 
 98.24  payments and overtime payments made at the time of separation 
 98.25  from state service, any amounts of severance pay, or any reduced 
 98.26  salary paid during the period the person is entitled to workers' 
 98.27  compensation benefit payments for temporary disability.  A 
 98.28  member on leave of absence receiving temporary workers' 
 98.29  compensation payments and a reduced salary or no salary from the 
 98.30  employer who is entitled to allowable service credit for the 
 98.31  period of absence may make payment to the fund for the 
 98.32  difference between salary received, if any, and the salary the 
 98.33  member would normally receive if not on leave of absence during 
 98.34  the period.  The member shall pay an amount equal to the member 
 98.35  and employer contribution rate under section 352B.02, 
 98.36  subdivisions 1b and 1c, on the differential salary amount for 
 99.1   the period of the leave of absence.  The employing department, 
 99.2   at its option, may pay the employer amount on behalf of the 
 99.3   member.  Payment made under this subdivision must include 
 99.4   interest at the rate of 8.5 percent per year, and must be 
 99.5   completed within one year of the return from the leave of 
 99.6   absence. 
 99.7      Sec. 15.  Minnesota Statutes 2000, section 352B.10, 
 99.8   subdivision 3, is amended to read: 
 99.9      Subd. 3.  [ANNUAL AND SICK LEAVE; WORK AT LOWER PAY.] No 
 99.10  member shall receive any disability benefit payment when the 
 99.11  member has unused annual leave or sick leave or under any other 
 99.12  circumstances, when during the period of disability there has 
 99.13  been no impairment of salary.  Should the member or former 
 99.14  member resume gainful work ~~and earn less than the salary~~ 
 99.15  ~~received at the date of disability or the salary currently paid~~ 
 99.16  ~~for similar positions~~, the disability benefit must be continued 
 99.17  in an amount which when added to current earnings does not 
 99.18  exceed the salary rate received of the person at the date of 
 99.19  disability ~~or the salary currently paid for similar positions,~~ 
 99.20  ~~whichever is higher.  The disability benefit must not exceed the~~ 
 99.21  ~~disability benefit originally allowed~~ as adjusted by the same 
 99.22  percentage increase in United States average wages used by 
 99.23  social security in calculating average indexed monthly earnings 
 99.24  for the same period. 
 99.25     Sec. 16.  Minnesota Statutes 2000, section 352B.101, is 
 99.26  amended to read: 
 99.27     352B.101 [APPLICATION FOR DISABILITY BENEFIT.] 
 99.28     A member claiming a disability benefit must file a written 
 99.29  application for benefits in the office of the system in a form 
 99.30  and manner prescribed by the executive director.  The member 
 99.31  shall provide medical or psychological evidence to support the 
 99.32  application.  The benefit begins to accrue the day following the 
 99.33  start of disability or the day following the last day for which 
 99.34  the member was paid, whichever is later, but not earlier than 
 99.35  180 days before the date the application is filed with the 
 99.36  executive director. 
100.1      Sec. 17.  Minnesota Statutes 2000, section 354.05, 
100.2   subdivision 2, is amended to read: 
100.3      Subd. 2.  [TEACHER.] (a) "Teacher" means: 
100.4      (1) a person who renders service as a teacher, supervisor, 
100.5   principal, superintendent, librarian, nurse, counselor, social 
100.6   worker, therapist, or psychologist in the public schools of the 
100.7   state located outside of the corporate limits of the cities of 
100.8   the first class ~~or in the Minnesota state colleges and~~ 
100.9   ~~universities system,~~ or in any charitable, penal, or 
100.10  correctional institutions of a governmental subdivision, or who 
100.11  is engaged in educational administration in connection with the 
100.12  state public school system, ~~including the Minnesota state~~ 
100.13  ~~colleges and universities system,~~ but excluding the University 
100.14  of Minnesota, whether the position be a public office or an 
100.15  employment, not including members or officers of any general 
100.16  governing or managing board or body; 
100.17     (2) an employee of the teachers retirement association 
100.18  ~~unless the employee is covered by the Minnesota state retirement~~ 
100.19  ~~system due to prior employment by that system~~; 
100.20     (3) a person who renders teaching service on a part-time 
100.21  basis and who also renders other services for a single employing 
100.22  unit.  A person whose teaching service comprises at least 50 
100.23  percent of the combined employment salary is a member of the 
100.24  association for all services with the single employing unit.  If 
100.25  the person's teaching service comprises less than 50 percent of 
100.26  the combined employment salary, the executive director must 
100.27  determine whether all or none of the combined service is covered 
100.28  by the association~~.~~; or 
100.29     (4) a person who is not covered by the plans established 
100.30  under chapter 352D, 354A, or 354B and who is employed by the 
100.31  board of trustees of the Minnesota state colleges and 
100.32  universities system in an unclassified position as: 
100.33     (i) a president, vice-president, or dean; 
100.34     (ii) a manager or a professional in an academic or an 
100.35  academic support program other than specified in item (i); 
100.36     (iii) an administrative or a service support faculty 
101.1   position; or 
101.2      (iv) a teacher or a research assistant. 
101.3      (b) Teacher does not mean: 
101.4      (1) a person who works for a school or institution as an 
101.5   independent contractor as defined by the Internal Revenue 
101.6   Service; 
101.7      (2) a person employed in subsidized on-the-job training, 
101.8   work experience or public service employment as an enrollee 
101.9   under the federal Comprehensive Employment and Training Act from 
101.10  and after March 30, 1978, unless the person has, as of the later 
101.11  of March 30, 1978, or the date of employment, sufficient service 
101.12  credit in the retirement association to meet the minimum vesting 
101.13  requirements for a deferred retirement annuity, or the employer 
101.14  agrees in writing on forms prescribed by the executive director 
101.15  to make the required employer contributions, including any 
101.16  employer additional contributions, on account of that person 
101.17  from revenue sources other than funds provided under the federal 
101.18  Comprehensive Training and Employment Act, or the person agrees 
101.19  in writing on forms prescribed by the executive director to make 
101.20  the required employer contribution in addition to the required 
101.21  employee contribution; 
101.22     (3) a person holding a part-time adult supplementary 
101.23  technical college license who renders part-time teaching service 
101.24  or a customized trainer as defined by the Minnesota state 
101.25  colleges and universities system in a technical college if (i) 
101.26  the service is incidental to the regular nonteaching occupation 
101.27  of the person; and (ii) the applicable technical college 
101.28  stipulates annually in advance that the part-time teaching 
101.29  service or customized training service will not exceed 300 hours 
101.30  in a fiscal year and retains the stipulation in its records; and 
101.31  (iii) the part-time teaching service or customized training 
101.32  service actually does not exceed 300 hours in a fiscal year; or 
101.33     (4) a person exempt from licensure under section 122A.30. 
101.34     Sec. 18.  Minnesota Statutes 2000, section 354.52, 
101.35  subdivision 4, is amended to read: 
101.36     Subd. 4.  [REPORTING AND REMITTANCE REQUIREMENTS.] An 
102.1   employer shall remit all amounts due to the association and 
102.2   furnish a statement indicating the amount due and transmitted 
102.3   with any other information required by the executive director.  
102.4   If an amount due is not received by the association within ~~seven~~ 
102.5   14 calendar days of the payroll warrant, the amount accrues 
102.6   interest at an annual rate of 8.5 percent compounded annually 
102.7   from the due date until the amount is received by the 
102.8   association.  All amounts due and other employer obligations not 
102.9   remitted within 60 days of notification by the association must 
102.10  be certified to the commissioner of finance who shall deduct the 
102.11  amount from any state aid or appropriation amount applicable to 
102.12  the employing unit. 
102.13     Sec. 19.  Minnesota Statutes 2000, section 354A.011, 
102.14  subdivision 24, is amended to read: 
102.15     Subd. 24.  [SALARY; COVERED SALARY.] (a) "Salary" or 
102.16  "covered salary" means the entire compensation, upon which 
102.17  member contributions are required and made, that is paid to a 
102.18  teacher before ~~any allowable reductions permitted under the~~ 
102.19  ~~federal Internal Revenue Code of 1986, as amended, for employee~~ 
102.20  ~~selected fringe benefits, tax sheltered annuities, deferred~~ 
102.21  ~~compensation, or any combination of these items~~ deductions for 
102.22  deferred compensation, supplemental retirement plans, or other 
102.23  voluntary salary reduction programs. 
102.24     (b) "Salary" does not mean: 
102.25     (1) lump sum annual leave payments; 
102.26     (2) lump sum wellness and sick leave payments; 
102.27     (3) ~~payments in lieu of any employer-paid group insurance~~ 
102.28  ~~coverage~~ employer-paid amounts used by an employee toward the 
102.29  cost of insurance coverage, employer-paid fringe benefits, 
102.30  flexible spending accounts, cafeteria plans, health care expense 
102.31  accounts, day care expenses, or any payments in lieu of any 
102.32  employer-paid group insurance coverage, including the difference 
102.33  between single and family rates that may be paid to a member 
102.34  with single coverage, and certain amounts determined by the 
102.35  executive secretary or director to be ineligible; 
102.36     (4) ~~payments for the difference between single and family~~ 
103.1   ~~premium rates that may be paid to a member with single~~ 
103.2   ~~coverage~~ any form of payment made in lieu of any other 
103.3   employer-paid fringe benefit or expense; 
103.4      (5) ~~employer-paid fringe benefits including, but not~~ 
103.5   ~~limited to, flexible spending accounts, cafeteria plans, health~~ 
103.6   ~~care expense accounts, day care expenses, or automobile~~ 
103.7   ~~allowances and expenses~~ any form of severance payments; 
103.8      (6) workers' compensation payments; 
103.9      (7) disability insurance payments, including self-insured 
103.10  disability payments; 
103.11     ~~(6)~~ (8) payments to school principals and all other 
103.12  administrators for services in addition to the normal work year 
103.13  contract if these additional services are performed on an 
103.14  extended duty day, Saturday, Sunday, holiday, annual leave day, 
103.15  sick leave day, or any other nonduty day; 
103.16     ~~(7)~~ (9) payments under section 356.24, subdivision 1, 
103.17  clause (4)(ii); and 
103.18     ~~(8)~~ (10) payments made under section 122A.40, subdivision 
103.19  12, except for payments for sick leave accumulated under the 
103.20  provisions of a uniform school district policy that applies 
103.21  equally to all similarly situated persons in the district. 
103.22     Sec. 20.  [354A.107] [PAYMENT ACCEPTANCE ALLOWED.] 
103.23     The payment for the purchase of allowable service credit, 
103.24  or the repayment of a prior refund, or the payment of equivalent 
103.25  contributions for an eligible leave of absence, as permitted by 
103.26  law, by a member of the Minneapolis teachers retirement fund 
103.27  association, the St. Paul teachers retirement fund association, 
103.28  or the Duluth teachers retirement fund association, may be made 
103.29  with amounts transferred from a plan qualified under section 
103.30  401(a), 401(k), 403(a), 403(b), or 457(b) of the federal 
103.31  Internal Revenue Code of 1986, as amended from time to time, or 
103.32  amounts transferred from an individual retirement account if 
103.33  done solely in a manner that is eligible for treatment as a 
103.34  nontaxable rollover under the applicable federal law.  The 
103.35  rollover must be separately accounted for as member 
103.36  contributions that were not previously taxed.  Before accepting 
104.1   any transfers to which this section applies, the executive 
104.2   secretary or director must require the member to provide written 
104.3   documentation that the amounts to be transferred are eligible 
104.4   for tax-free rollover and qualify for that treatment under the 
104.5   federal Internal Revenue Code of 1986, as amended. 
104.6      Sec. 21.  [354A.108] [PAYMENT BY TEACHERS COLLECTING 
104.7   WORKERS' COMPENSATION.] 
104.8      (a) A member of the Duluth teachers retirement fund 
104.9   association who is receiving temporary workers' compensation 
104.10  payments related to the member's teaching service and who either 
104.11  is receiving a reduced salary from the employer or is receiving 
104.12  no salary from the employer is entitled to receive allowable 
104.13  service credit for the period of time that the member is 
104.14  receiving the workers' compensation payments upon making the 
104.15  required payment amount.  
104.16     (b) The required amount payable by the member must be 
104.17  calculated first by determining the differential salary amount, 
104.18  which is the difference between the salary received, if any, 
104.19  during the period of time that the member is collecting workers' 
104.20  compensation payments, and the salary that the member received 
104.21  for an identical length period immediately before collecting the 
104.22  workers' compensation payments.  The member shall pay an amount 
104.23  equal to the employee contribution rate under section 354A.12, 
104.24  subdivision 1, multiplied by the differential salary amount.  
104.25     (c) If the member makes the employee payment under this 
104.26  section, the employing unit shall make an employer payment to 
104.27  the Duluth teachers retirement fund association equal to the 
104.28  employer contribution rate under section 354A.12, subdivision 
104.29  2a, multiplied by the differential salary amount.  
104.30     (d) Payments made under this subdivision are payable 
104.31  without interest if paid by June 30 of the year during which the 
104.32  workers' compensation payments are received by the member.  If 
104.33  paid after June 30, payments made under this subdivision must 
104.34  include interest at the rate of 8.5 percent per year.  Payment 
104.35  under this section must be completed within one year of the 
104.36  termination of the workers' compensation payments to the member. 
105.1      Sec. 22.  Minnesota Statutes 2000, section 354A.12, 
105.2   subdivision 5, is amended to read: 
105.3      Subd. 5.  [~~EMPLOYEE~~ REPORTING AND REMITTANCE REQUIREMENTS.] 
105.4   (a) Each ~~school district~~ employing unit shall provide to the 
105.5   appropriate teachers retirement fund association ~~information~~ the 
105.6   following member data regarding all new or returning 
105.7   employees ~~on a form provided by the executive secretary or~~ 
105.8   ~~director~~ before the employee's first payroll date~~.~~ in a format 
105.9   approved by the executive secretary or director.  Data changes 
105.10  and the dates of those changes must be reported to the 
105.11  association on an ongoing basis for the payroll cycle in which 
105.12  they occur.  Data on the member includes: 
105.13     (1) legal name, address, date of birth, association member 
105.14  number, employer-assigned employee number, and social security 
105.15  number; 
105.16     (2) association status, including, but not limited to, 
105.17  basic, coordinated, exempt annuitant, exempt technical college 
105.18  teacher, or exempt independent contractor or consultant; 
105.19     (3) employment status, including, but not limited to, full 
105.20  time, part time, intermittent, substitute, or part-time 
105.21  mobility; 
105.22     (4) employment position, including, but not limited to, 
105.23  teacher, superintendent, principal, administrator, or other; 
105.24     (5) employment activity, including, but not limited to, 
105.25  hire, termination, resumption of employment, disability, or 
105.26  death; 
105.27     (6) leaves of absence; and 
105.28     (7) other information as may be required by the association.
105.29     (b) Each employing unit shall provide the following data to 
105.30  the appropriate association for each payroll cycle in a format 
105.31  approved by the executive secretary or director: 
105.32     (1) an association member number; 
105.33     (2) employer-assigned employee number; 
105.34     (3) social security number; 
105.35     (4) amount of each salary deduction; 
105.36     (5) amount of salary as defined in section 354A.011, 
106.1   subdivision 24, from which each deduction was made; 
106.2      (6) reason for payment; 
106.3      (7) service credit; 
106.4      (8) the beginning and ending dates of the payroll period 
106.5   covered and the date of actual payment; 
106.6      (9) fiscal year of salary earnings; 
106.7      (10) total remittance amount including employee, employer, 
106.8   and employer additional contributions; and 
106.9      (11) other information as may be required by the 
106.10  association. 
106.11     (c) On or before August 1 each year, each employing unit 
106.12  must report to the appropriate association giving an itemized 
106.13  summary for the preceding 12 months of the total amount that was 
106.14  withheld from the salaries of teachers for deductions and all 
106.15  other information required by the association. 
106.16     (d) An employing unit that does not comply with the 
106.17  reporting requirements under this section shall pay a fine of $5 
106.18  per calendar day until the association receives the required 
106.19  member data. 
106.20     (e) An employing unit shall remit all amounts that are due 
106.21  to the association and shall furnish for each pay period an 
106.22  itemized statement indicating the total amount that is due and 
106.23  is transmitted with any other information required by the 
106.24  association.  All amounts due and other employer obligations 
106.25  that are not remitted within 30 days of notification by the 
106.26  association must be certified by the director or secretary to 
106.27  the commissioner of finance, who shall deduct the amount from 
106.28  any state aid or appropriation amount applicable to the 
106.29  employing unit and shall transmit the deducted amount to the 
106.30  applicable association. 
106.31     Sec. 23.  Minnesota Statutes 2000, section 354A.31, 
106.32  subdivision 3, is amended to read: 
106.33     Subd. 3.  [RESUMPTION OF TEACHING AFTER COMMENCEMENT OF A 
106.34  RETIREMENT ANNUITY.] (a) Any person who retired and is receiving 
106.35  a coordinated program retirement annuity under the provisions of 
106.36  sections 354A.31 to 354A.41 or any person receiving a basic 
107.1   program retirement annuity under the governing sections in the 
107.2   articles of incorporation or bylaws and who has resumed teaching 
107.3   service for the school district in which the teachers retirement 
107.4   fund association exists is entitled to continue to receive 
107.5   retirement annuity payments, except that annuity payments must 
107.6   be reduced during the calendar year immediately following the 
107.7   calendar year in which the person's income from the teaching 
107.8   service is in an amount greater than the annual maximum earnings 
107.9   allowable for that age for the continued receipt of full benefit 
107.10  amounts monthly under the federal old age, survivors, and 
107.11  disability insurance program as set by the secretary of health 
107.12  and human services under United States Code, title 42, section 
107.13  403.  The amount of the reduction must be one-third the amount 
107.14  in excess of the applicable reemployment income maximum 
107.15  specified in this subdivision and must be deducted from the 
107.16  annuity payable for the calendar year immediately following the 
107.17  calendar year in which the excess amount was earned.  If the 
107.18  person has not yet reached the minimum age for the receipt of 
107.19  social security benefits, the maximum earnings for the person 
107.20  must be equal to the annual maximum earnings allowable for the 
107.21  minimum age for the receipt of social security benefits. 
107.22     (b) If the person is retired for only a fractional part of 
107.23  the calendar year during the initial year of retirement, the 
107.24  maximum reemployment income specified in this subdivision must 
107.25  be prorated for that calendar year. 
107.26     (c) After a person has reached the age of 70, no 
107.27  reemployment income maximum is applicable regardless of the 
107.28  amount of any compensation received for teaching service for the 
107.29  school district in which the teachers retirement fund 
107.30  association exists.  
107.31     (d) The amount of the retirement annuity reduction must be 
107.32  handled or disposed of as provided in section 356.58. 
107.33     (e) For the purpose of this subdivision, income from 
107.34  teaching service includes:  (i) all income for services 
107.35  performed as a consultant or independent contractor; or income 
107.36  resulting from working with the school district in any capacity; 
108.1   and (ii) the greater of either the income received or an amount 
108.2   based on the rate paid with respect to an administrative 
108.3   position, consultant, or independent contractor in the school 
108.4   district in which the teachers retirement fund association 
108.5   exists and at the same level as the position occupied by the 
108.6   person who resumes teaching service. 
108.7      (f) On or before February 15 of each year, each applicable 
108.8   employing unit shall report to the teachers retirement fund 
108.9   association the amount of postretirement income as defined in 
108.10  this subdivision, earned as a teacher, consultant, or 
108.11  independent contractor during the previous calendar year by each 
108.12  retiree of the teachers retirement fund association for teaching 
108.13  service performed after retirement.  The report must be in a 
108.14  format approved by the executive secretary or director. 
108.15     Sec. 24.  Minnesota Statutes 2000, section 354A.35, 
108.16  subdivision 4, is amended to read: 
108.17     Subd. 4.  [PAYMENT OF MINIMAL REFUND AND BENEFIT AMOUNTS.] 
108.18  If a coordinated member or former coordinated member dies 
108.19  without having designated a beneficiary or if the designated 
108.20  beneficiary dies without there existing any other designated 
108.21  beneficiary and prior to making application for the refund 
108.22  credited to the deceased coordinated member or coordinated 
108.23  former member, and if the amount of the refund does not 
108.24  exceed ~~$500~~ $1,500, the board in its discretion may, in absence 
108.25  of probate proceedings, make payment 90 days after the date of 
108.26  death of the coordinated member or former coordinated member to 
108.27  the surviving spouse of the deceased coordinated member or 
108.28  former coordinated member, or if none, to the next of kin as 
108.29  determined under the laws of descent of the state.  A payment 
108.30  under this subdivision shall be a bar to recovery by any other 
108.31  person or persons.  Any retirement annuity in any amount which 
108.32  has accrued at the time of the death of a coordinated retiree 
108.33  may be paid by the board in its discretion using the procedure 
108.34  set forth in this subdivision.  
108.35     Sec. 25.  [356.866] [CONVERSION OF LUMP-SUM POSTRETIREMENT 
108.36  AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 
109.1      Subdivision 1.  [LUMP-SUM POSTRETIREMENT PAYMENT 
109.2   CONVERSION.] For benefits paid after December 31, 2001, to 
109.3   eligible persons under sections 356.86 and 356.865, the amount 
109.4   of the most recent lump-sum benefit payable to an eligible 
109.5   recipient under sections 356.86 and 356.865, must be divided by 
109.6   12.  The result must be added to the monthly annuity or benefit 
109.7   otherwise payable to an eligible recipient, must become a 
109.8   permanent part of the benefit recipient's pension, and must be 
109.9   included in any pension benefit subject to future increases. 
109.10     Subd. 2.  [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 
109.11  POSTRETIREMENT INVESTMENT FUND.] Public employee retirement 
109.12  funds participating in the state board of investment 
109.13  postretirement investment fund shall transfer the required 
109.14  reserves for the postretirement conversion under subdivision 1 
109.15  to the postretirement investment fund by January 31, 2002. 
109.16     Sec. 26.  Minnesota Statutes 2000, section 356A.06, 
109.17  subdivision 5, is amended to read: 
109.18     Subd. 5.  [INVESTMENT BUSINESS RECIPIENT DISCLOSURE.] The 
109.19  chief administrative officer of a covered pension plan, with 
109.20  respect to investments made by the plan, and the executive 
109.21  director of the state board of investment, with respect to 
109.22  investments of plan assets made by the board, shall annually 
109.23  disclose in writing the recipients of investment business placed 
109.24  with or investment commissions allocated among commercial banks, 
109.25  investment bankers, brokerage organizations, or other investment 
109.26  managers.  The disclosure document must be prepared within 60 
109.27  days after the close of the fiscal year of the plan and must be 
109.28  available for public inspection during regular office hours at 
109.29  the office of the plan.  The disclosure document must also be 
109.30  filed with the executive director of the legislative commission 
109.31  on pensions and retirement within 90 days after the close of the 
109.32  fiscal year of the plan.  For the state board of investment and 
109.33  a first class city teacher retirement fund association, a 
109.34  disclosure document included as part of a regular annual report 
109.35  of the board or of the first class city teacher retirement fund 
109.36  association when filed with the executive director of the 
110.1   legislative commission on pensions and retirement is considered 
110.2   to have been filed on a timely basis. 
110.3      Sec. 27.  Minnesota Statutes 2000, section 490.121, 
110.4   subdivision 4, is amended to read: 
110.5      Subd. 4.  [ALLOWABLE SERVICE.] "Allowable service" means ~~a~~ 
110.6   ~~whole year, or any fraction thereof~~ any calendar month, subject 
110.7   to the service credit limit in subdivision 22, served as a judge 
110.8   at any time, or served as a referee in probate for all referees 
110.9   in probate who were in office prior to January 1, 1974. 
110.10     Sec. 28.  Laws 2000, chapter 461, article 10, section 3, is 
110.11  amended to read: 
110.12     Sec. 3.  [EFFECTIVE DATE.] 
110.13     Section 1 is effective on the day following final enactment.
110.14  Section 2 is effective on the first day of the first full pay 
110.15  period beginning after January 1, ~~2002~~ 2003. 
110.16     Sec. 29.  [REPEALER.] 
110.17     Minnesota Statutes 2000, section 354A.026, is repealed. 
110.18     Sec. 30.  [EFFECTIVE DATE.] 
110.19     (a) Sections 1 to 20, and 22 to 29 are effective on July 1, 
110.20  2001. 
110.21     (b) Section 21 is effective on May 1, 2001. 
110.22                             ARTICLE 4 
110.23      OPEN MEETING REQUIREMENT FOR LOCAL PUBLIC PENSION PLANS
110.24     Section 1.  Minnesota Statutes 2000, section 13D.01, 
110.25  subdivision 1, is amended to read: 
110.26     Subdivision 1.  [IN EXECUTIVE BRANCH, LOCAL GOVERNMENT.] 
110.27  All meetings, including executive sessions, must be open to the 
110.28  public 
110.29     (a) of a state 
110.30     (1) agency, 
110.31     (2) board, 
110.32     (3) commission, or 
110.33     (4) department, 
110.34  when required or permitted by law to transact public business in 
110.35  a meeting; ~~and~~ 
110.36     (b) of the governing body of a 
111.1      (1) school district however organized, 
111.2      (2) unorganized territory, 
111.3      (3) county, 
111.4      (4) statutory or home rule charter city, 
111.5      (5) town, or 
111.6      (6) other public body; ~~and~~ 
111.7      (c) of any 
111.8      (1) committee, 
111.9      (2) subcommittee, 
111.10     (3) board, 
111.11     (4) department, or 
111.12     (5) commission, 
111.13  of a public body; and 
111.14     (d) of the governing body or a committee of: 
111.15     (1) a statewide public pension plan defined in section 
111.16  356A.01, subdivision 24; or 
111.17     (2) a local public pension plan governed by section 69.77, 
111.18  sections 69.771 to 69.775, or chapter 354A, 422A, or 423B. 
111.19     Sec. 2.  Minnesota Statutes 2000, section 356A.08, 
111.20  subdivision 1, is amended to read: 
111.21     Subdivision 1.  [PUBLIC MEETINGS.] A meeting of the 
111.22  governing board of a covered ~~statewide~~ pension plan or of a 
111.23  committee of the governing board of the ~~statewide~~ covered 
111.24  pension plan is governed by chapter 13D. 
111.25     Sec. 3.  [EFFECTIVE DATE.] 
111.26     Sections 1 and 2 are effective the day following final 
111.27  enactment. 
111.28                             ARTICLE 5  
111.29                    POLICE STATE AID AMENDMENTS
111.30     Section 1.  Minnesota Statutes 2000, section 69.011, 
111.31  subdivision 1, is amended to read: 
111.32     Subdivision 1.  [DEFINITIONS.] Unless the language or 
111.33  context clearly indicates that a different meaning is intended, 
111.34  the following words and terms shall for the purposes of this 
111.35  chapter and chapters 423, 423A, 424 and 424A have the meanings 
111.36  ascribed to them: 
112.1      (a) "Commissioner" means the commissioner of revenue. 
112.2      (b) "Municipality" means ~~any~~: 
112.3      (1) a home rule charter or statutory city~~,~~; 
112.4      (2) an organized town ~~or~~; 
112.5      (3) a park district subject to chapter 398~~,~~; 
112.6      (4) the University of Minnesota~~, and,~~; 
112.7      (5) for purposes of the fire state aid program only, an 
112.8   American Indian tribal government entity located within a 
112.9   federally recognized American Indian reservation~~, and,~~; 
112.10     (6) for purposes of the police state aid program only, an 
112.11  American Indian tribal government with a tribal police 
112.12  department which exercises state arrest powers under section 
112.13  626.90, 626.91, 626.92, or 626.93; 
112.14     (7) for purposes of the police state aid program only, the 
112.15  metropolitan airports commission~~,~~ with respect to peace officers 
112.16  covered under chapter 422A~~, or~~; and 
112.17     (8) for purposes of the police state aid program only, the 
112.18  department of natural resources and the department of public 
112.19  safety with respect to peace officers covered under chapter 352B.
112.20     (c) "Minnesota Firetown Premium Report" means a form 
112.21  prescribed by the commissioner containing space for reporting by 
112.22  insurers of fire, lightning, sprinkler leakage and extended 
112.23  coverage premiums received upon risks located or to be performed 
112.24  in this state less return premiums and dividends. 
112.25     (d) "Firetown" means the area serviced by any municipality 
112.26  having a qualified fire department or a qualified incorporated 
112.27  fire department having a subsidiary volunteer firefighters' 
112.28  relief association. 
112.29     (e) "Market value" means latest available market value of 
112.30  all property in a taxing jurisdiction, whether the property is 
112.31  subject to taxation, or exempt from ad valorem taxation obtained 
112.32  from information which appears on abstracts filed with the 
112.33  commissioner of revenue or equalized by the state board of 
112.34  equalization. 
112.35     (f) "Minnesota Aid to Police Premium Report" means a form 
112.36  prescribed by the commissioner for reporting by each fire and 
113.1   casualty insurer of all premiums received upon direct business 
113.2   received by it in this state, or by its agents for it, in cash 
113.3   or otherwise, during the preceding calendar year, with reference 
113.4   to insurance written for insuring against the perils contained 
113.5   in auto insurance coverages as reported in the Minnesota 
113.6   business schedule of the annual financial statement which each 
113.7   insurer is required to file with the commissioner in accordance 
113.8   with the governing laws or rules less return premiums and 
113.9   dividends. 
113.10     (g) "Peace officer" means any person: 
113.11     (1) whose primary source of income derived from wages is 
113.12  from direct employment by a municipality or county as a law 
113.13  enforcement officer on a full-time basis of not less than 30 
113.14  hours per week; 
113.15     (2) who has been employed for a minimum of six months prior 
113.16  to December 31 preceding the date of the current year's 
113.17  certification under subdivision 2, clause (b); 
113.18     (3) who is sworn to enforce the general criminal laws of 
113.19  the state and local ordinances; 
113.20     (4) who is licensed by the peace officers standards and 
113.21  training board and is authorized to arrest with a warrant; and 
113.22     (5) who is a member of a local police relief association to 
113.23  which section 69.77 applies, the state patrol retirement plan, 
113.24  the public employees police and fire fund, or the Minneapolis 
113.25  employees retirement fund. 
113.26     (h) "Full-time equivalent number of peace officers 
113.27  providing contract service" means the integral or fractional 
113.28  number of peace officers which would be necessary to provide the 
113.29  contract service if all peace officers providing service were 
113.30  employed on a full-time basis as defined by the employing unit 
113.31  and the municipality receiving the contract service. 
113.32     (i) "Retirement benefits other than a service pension"  
113.33  means any disbursement authorized under section 424A.05, 
113.34  subdivision 3, clauses (2), (3), and (4).  
113.35     (j) "Municipal clerk, municipal clerk-treasurer, or county 
113.36  auditor" means the person who was elected or appointed to the 
114.1   specified position or, in the absence of the person, another 
114.2   person who is designated by the applicable governing body.  In a 
114.3   park district, the clerk is the secretary of the board of park 
114.4   district commissioners.  In the case of the University of 
114.5   Minnesota, the clerk is that official designated by the board of 
114.6   regents.  For the metropolitan airports commission, the clerk is 
114.7   the person designated by the commission.  For the department of 
114.8   natural resources or the department of public safety, the clerk 
114.9   is the respective commissioner.  For a tribal police department 
114.10  which exercises state arrest powers under section 626.90, 
114.11  626.91, 626.92, or 626.93, the clerk is the person designated by 
114.12  the applicable American Indian tribal government. 
114.13     Sec. 2.  [EFFECTIVE DATE.] 
114.14     Section 1 is effective the day following final enactment. 
114.15                             ARTICLE 6  
114.16                GENERALIZED SERVICE CREDIT PURCHASES
114.17     Section 1.  Minnesota Statutes 2000, section 352.01, 
114.18  subdivision 11, is amended to read: 
114.19     Subd. 11.  [ALLOWABLE SERVICE.] "Allowable service" means:  
114.20     (1) Service by an employee for which on or before July 1, 
114.21  1957, the employee was entitled to allowable service credit on 
114.22  the records of the system by reason of employee contributions in 
114.23  the form of salary deductions, payments in lieu of salary 
114.24  deductions, or in any other manner authorized by Minnesota 
114.25  Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239.
114.26     (2) Service by an employee for which on or before July 1, 
114.27  1961, the employee chose to obtain credit for service by making 
114.28  payments to the fund under Minnesota Statutes 1961, section 
114.29  352.24. 
114.30     (3) Except as provided in clauses (8) and (9), service by 
114.31  an employee after July 1, 1957, for any calendar month in which 
114.32  the employee is paid salary from which deductions are made, 
114.33  deposited, and credited in the fund, including deductions made, 
114.34  deposited, and credited as provided in section 352.041. 
114.35     (4) Except as provided in clauses (8) and (9), service by 
114.36  an employee after July 1, 1957, for any calendar month for which 
115.1   payments in lieu of salary deductions are made, deposited, and 
115.2   credited in the fund, as provided in section 352.27 and 
115.3   Minnesota Statutes 1957, section 352.021, subdivision 4. 
115.4      For purposes of clauses (3) and (4), except as provided in 
115.5   clauses (8) and (9), any salary paid for a fractional part of 
115.6   any calendar month, including the month of separation from state 
115.7   service, is deemed the compensation for the entire calendar 
115.8   month. 
115.9      (5) The period of absence from their duties by employees 
115.10  who are temporarily disabled because of injuries incurred in the 
115.11  performance of duties and for which disability the state is 
115.12  liable under the workers' compensation law until the date 
115.13  authorized by the director for the commencement of payments of a 
115.14  total and permanent disability benefit from the retirement fund. 
115.15     (6) Service covered by a refund repaid as provided in 
115.16  section 352.23 or 352D.05, subdivision 4, except service 
115.17  rendered as an employee of the adjutant general for which the 
115.18  person has credit with the federal civil service retirement 
115.19  system. 
115.20     (7) Service before July 1, 1978, by an employee of the 
115.21  transit operating division of the metropolitan transit 
115.22  commission or by an employee on an authorized leave of absence 
115.23  from the transit operating division of the metropolitan transit 
115.24  commission who is employed by the labor organization which is 
115.25  the exclusive bargaining agent representing employees of the 
115.26  transit operating division, which was credited by the 
115.27  metropolitan transit commission-transit operating division 
115.28  employees retirement fund or any of its predecessor plans or 
115.29  funds as past, intermediate, future, continuous, or allowable 
115.30  service as defined in the metropolitan transit 
115.31  commission-transit operating division employees retirement fund 
115.32  plan document in effect on December 31, 1977. 
115.33     (8) Service after July 1, 1983, by an employee who is 
115.34  employed on a part-time basis for less than 50 percent of full 
115.35  time, for which the employee is paid salary from which 
115.36  deductions are made, deposited, and credited in the fund, 
116.1   including deductions made, deposited, and credited as provided 
116.2   in section 352.041 or for which payments in lieu of salary 
116.3   deductions are made, deposited, and credited in the fund as 
116.4   provided in section 352.27 shall be credited on a fractional 
116.5   basis either by pay period, monthly, or annually based on the 
116.6   relationship that the percentage of salary earned bears to a 
116.7   full-time salary, with any salary paid for the fractional 
116.8   service credited on the basis of the rate of salary applicable 
116.9   for a full-time pay period, month, or a full-time year.  For 
116.10  periods of part-time service that is duplicated service credit, 
116.11  section 356.30, subdivision 1, clauses (i) and (j), govern. 
116.12     Allowable service determined and credited on a fractional 
116.13  basis shall be used in calculating the amount of benefits 
116.14  payable, but service as determined on a fractional basis must 
116.15  not be used in determining the length of service required for 
116.16  eligibility for benefits.  
116.17     (9) Any period of authorized leave of absence without pay 
116.18  that does not exceed one year and for which the employee 
116.19  obtained credit by payment to the fund in lieu of salary 
116.20  deductions.  To obtain credit, the employee shall pay an amount 
116.21  equal to the employee and employer contribution rate in section 
116.22  352.04, subdivisions 2 and 3, multiplied by the employee's 
116.23  hourly rate of salary on the date of return from leave of 
116.24  absence and by the days and months of the leave of absence 
116.25  without pay for which the employee wants allowable service 
116.26  credit.  The employing department, at its option, may pay the 
116.27  employer amount on behalf of its employees.  Payments made under 
116.28  this clause must include interest at an annual rate of 8.5 
116.29  percent compounded annually from the date of termination of the 
116.30  leave of absence to the date payment is made unless payment is 
116.31  completed within one year of the return from leave of absence. 
116.32     (10) A period purchased under section 356.555. 
116.33     Sec. 2.  Minnesota Statutes 2000, section 352B.01, 
116.34  subdivision 3, is amended to read: 
116.35     Subd. 3.  [ALLOWABLE SERVICE.] (a) "Allowable service" 
116.36  means:  
117.1      (1) for members defined in subdivision 2, clause (a), 
117.2   monthly service is granted for any month for which payments have 
117.3   been made to the state patrol retirement fund, and 
117.4      (2) for members defined in subdivision 2, clauses (b) and 
117.5   (c), service for which payments have been made to the state 
117.6   patrol retirement fund, service for which payments were made to 
117.7   the state police officers retirement fund after June 30, 1961, 
117.8   and all prior service which was credited to a member for service 
117.9   on or before June 30, 1961.  
117.10     (b) Allowable service also includes any period of absence 
117.11  from duty by a member who, by reason of injury incurred in the 
117.12  performance of duty, is temporarily disabled and for which 
117.13  disability the state is liable under the workers' compensation 
117.14  law, until the date authorized by the executive director for 
117.15  commencement of payment of a disability benefit or return to 
117.16  employment.  
117.17     (c) Allowable service also includes a period purchased 
117.18  under section 356.555. 
117.19     Sec. 3.  Minnesota Statutes 2000, section 353.01, 
117.20  subdivision 16, is amended to read: 
117.21     Subd. 16.  [ALLOWABLE SERVICE.] (a) "Allowable service" 
117.22  means service during years of actual membership in the course of 
117.23  which employee contributions were made, periods covered by 
117.24  payments in lieu of salary deductions under section 353.35, and 
117.25  service in years during which the public employee was not a 
117.26  member but for which the member later elected, while a member, 
117.27  to obtain credit by making payments to the fund as permitted by 
117.28  any law then in effect. 
117.29     (b) "Allowable service" also means a period of authorized 
117.30  leave of absence with pay from which deductions for employee 
117.31  contributions are made, deposited, and credited to the fund.  
117.32     (c) "Allowable service" also means a period of authorized 
117.33  leave of absence without pay that does not exceed one year, and 
117.34  during or for which a member obtained credit by payments to the 
117.35  fund made in place of salary deductions, provided that the 
117.36  payments are made in an amount or amounts based on the member's 
118.1   average salary on which deductions were paid for the last six 
118.2   months of public service, or for that portion of the last six 
118.3   months while the member was in public service, to apply to the 
118.4   period in either case immediately preceding commencement of the 
118.5   leave of absence.  If the employee elects to pay employee 
118.6   contributions for the period of any leave of absence without 
118.7   pay, or for any portion of the leave, the employee shall also, 
118.8   as a condition to the exercise of the election, pay to the fund 
118.9   an amount equivalent to both the required employer and 
118.10  additional employer contributions for the employee.  The payment 
118.11  must be made within one year from the expiration of the leave of 
118.12  absence or within 20 days after termination of public service 
118.13  under subdivision 11a.  The employer by appropriate action of 
118.14  its governing body, made a part of its official records, before 
118.15  the date of the first payment of the employee contribution, may 
118.16  certify to the association in writing its commitment to pay the 
118.17  employer and additional employer contributions from the proceeds 
118.18  of a tax levy made under section 353.28.  Payments under this 
118.19  paragraph must include interest at an annual rate of 8.5 percent 
118.20  compounded annually from the date of the termination of the 
118.21  leave of absence to the date payment is made.  An employee shall 
118.22  return to public service and receive a minimum of three months 
118.23  of allowable service to be eligible to pay employee and employer 
118.24  contributions for a subsequent authorized leave of absence 
118.25  without pay. 
118.26     (d) "Allowable service" also means a periodic, repetitive 
118.27  leave that is offered to all employees of a governmental 
118.28  subdivision.  The leave program may not exceed 208 hours per 
118.29  annual normal work cycle as certified to the association by the 
118.30  employer.  A participating member obtains service credit by 
118.31  making employee contributions in an amount or amounts based on 
118.32  the member's average salary that would have been paid if the 
118.33  leave had not been taken.  The employer shall pay the employer 
118.34  and additional employer contributions on behalf of the 
118.35  participating member.  The employee and the employer are 
118.36  responsible to pay interest on their respective shares at the 
119.1   rate of 8.5 percent a year, compounded annually, from the end of 
119.2   the normal cycle until full payment is made.  An employer shall 
119.3   also make the employer and additional employer contributions, 
119.4   plus 8.5 percent interest, compounded annually, on behalf of an 
119.5   employee who makes employee contributions but terminates public 
119.6   service.  The employee contributions must be made within one 
119.7   year after the end of the annual normal working cycle or within 
119.8   20 days after termination of public service, whichever is 
119.9   sooner.  The association shall prescribe the manner and forms to 
119.10  be used by a governmental subdivision in administering a 
119.11  periodic, repetitive leave. 
119.12     (e) "Allowable service" also means a period during which a 
119.13  member is on an authorized sick leave of absence, without pay, 
119.14  limited to one year.  An employee who has received one year of 
119.15  allowable service shall return to public service and receive a 
119.16  minimum of three months of allowable service to receive 
119.17  allowable service for a subsequent authorized sick leave of 
119.18  absence. 
119.19     (f) "Allowable service" also means an authorized temporary 
119.20  layoff under subdivision 12, limited to three months allowable 
119.21  service per authorized temporary layoff in one calendar year.  
119.22  An employee who has received the maximum service allowed for an 
119.23  authorized temporary layoff shall return to public service and 
119.24  receive a minimum of three months of allowable service to 
119.25  receive allowable service for a subsequent authorized temporary 
119.26  layoff. 
119.27     (g) Notwithstanding any law to the contrary, "allowable 
119.28  service" also means a parental leave.  The association shall 
119.29  grant a maximum of two months service credit for a parental 
119.30  leave, within six months after the birth or adoption, upon 
119.31  documentation from the member's governmental subdivision or 
119.32  presentation of a birth certificate or other evidence of birth 
119.33  or adoption to the association. 
119.34     (h) "Allowable service" also means a period during which a 
119.35  member is on an authorized leave of absence to enter military 
119.36  service, provided that the member returns to public service upon 
120.1   discharge from military service under section 192.262 and pays 
120.2   into the fund employee contributions based upon the employee's 
120.3   salary at the date of return from military service.  Payment 
120.4   must be made within five years of the date of discharge from the 
120.5   military service.  The amount of these contributions must be in 
120.6   accord with the contribution rates and salary limitations, if 
120.7   any, in effect during the leave, plus interest at an annual rate 
120.8   of 8.5 percent compounded annually from the date of return to 
120.9   public service to the date payment is made.  The matching 
120.10  employer contribution and additional employer contribution under 
120.11  section 353.27, subdivisions 3 and 3a, must be paid by the 
120.12  governmental subdivision employing the member upon return to 
120.13  public service if the member makes the employee contributions.  
120.14  The governmental subdivision involved may appropriate money for 
120.15  those payments.  A member may not receive credit for a voluntary 
120.16  extension of military service at the instance of the member 
120.17  beyond the initial period of enlistment, induction, or call to 
120.18  active duty. 
120.19     (i) For calculating benefits under sections 353.30, 353.31, 
120.20  353.32, and 353.33 for state officers and employees displaced by 
120.21  the Community Corrections Act, chapter 401, and transferred into 
120.22  county service under section 401.04, "allowable service" means 
120.23  combined years of allowable service as defined in paragraphs (a) 
120.24  to (i) and section 352.01, subdivision 11.  
120.25     (j) For a public employee who has prior service covered by 
120.26  a local police or firefighters relief association that has 
120.27  consolidated with the public employees retirement association or 
120.28  to which section 353.665 applies, and who has elected the type 
120.29  of benefit coverage provided by the public employees police and 
120.30  fire fund either under section 353A.08 following the 
120.31  consolidation or under section 353.665, subdivision 4, 
120.32  "applicable service" is a period of service credited by the 
120.33  local police or firefighters relief association as of the 
120.34  effective date of the consolidation based on law and on bylaw 
120.35  provisions governing the relief association on the date of the 
120.36  initiation of the consolidation procedure. 
121.1      (k) "Allowable service" also means a period purchased under 
121.2   section 356.555. 
121.3      Sec. 4.  Minnesota Statutes 2000, section 354.05, 
121.4   subdivision 13, is amended to read: 
121.5      Subd. 13.  [ALLOWABLE SERVICE.] "Allowable service" means: 
121.6      (1) Any service rendered by a teacher for which on or 
121.7   before July 1, 1957, the teacher's account in the retirement 
121.8   fund was credited by reason of employee contributions in the 
121.9   form of salary deductions, payments in lieu of salary 
121.10  deductions, or in any other manner authorized by Minnesota 
121.11  Statutes 1953, sections 135.01 to 135.13, as amended by Laws 
121.12  1955, chapters 361, 549, 550, 611 or 
121.13     (2) Any service rendered by a teacher for which on or 
121.14  before July 1, 1961, the teacher elected to obtain credit for 
121.15  service by making payments to the fund pursuant to Minnesota 
121.16  Statutes 1980, section 354.09 and section 354.51 or 
121.17     (3) Any service rendered by a teacher after July 1, 1957, 
121.18  for any calendar month when the member receives salary from 
121.19  which deductions are made, deposited and credited in the fund, 
121.20  or 
121.21     (4) Any service rendered by a person after July 1, 1957, 
121.22  for any calendar month where payments in lieu of salary 
121.23  deductions are made, deposited and credited into the fund as 
121.24  provided in Minnesota Statutes 1980, section 354.09, subdivision 
121.25  4, and section 354.53, or 
121.26     (5) Any service rendered by a teacher for which the teacher 
121.27  elected to obtain credit for service by making payments to the 
121.28  fund pursuant to Minnesota Statutes 1980, section 354.09, 
121.29  subdivisions 1 and 4, sections 354.50, 354.51, Minnesota 
121.30  Statutes 1957, section 135.41, subdivision 4, Minnesota Statutes 
121.31  1971, section 354.09, subdivision 2, or Minnesota Statutes, 1973 
121.32  Supplement, section 354.09, subdivision 3, or 
121.33     (6) Both service during years of actual membership in the 
121.34  course of which contributions were currently made and service in 
121.35  years during which the teacher was not a member but for which 
121.36  the teacher later elected to obtain credit by making payments to 
122.1   the fund as permitted by any law then in effect, or 
122.2      (7) Any service rendered where contributions were made and 
122.3   no allowable service credit was established because of the 
122.4   limitations contained in Minnesota Statutes 1957, section 
122.5   135.09, subdivision 2, as determined by the ratio between the 
122.6   amounts of money credited to the teacher's account in a fiscal 
122.7   year and the maximum retirement contribution allowable for that 
122.8   year, or 
122.9      (8) a period purchased under section 356.555.  
122.10     Sec. 5.  Minnesota Statutes 2000, section 354.534, 
122.11  subdivision 1, is amended to read: 
122.12     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) A 
122.13  teacher who has at least three years of allowable service credit 
122.14  with the teachers retirement association is entitled to purchase 
122.15  up to ten years of allowable and formula service credit for 
122.16  out-of-state teaching service by making payment under section 
122.17  356.55, provided the out-of-state teaching service was performed 
122.18  for an educational institution established and operated by 
122.19  another ~~state, governmental subdivision of another state, or the~~ 
122.20  ~~federal government~~ governmental jurisdiction and the teacher is 
122.21  not entitled to receive a current or deferred age and service 
122.22  retirement annuity or disability benefit and has not purchased 
122.23  service credit from another defined benefit public employee 
122.24  pension plan for that out-of-state teaching service. 
122.25     (b) For purposes of paragraph (a), "another governmental 
122.26  jurisdiction" means:  
122.27     (1) another state of the United States; 
122.28     (2) a governmental subdivision of another state of the 
122.29  United States; 
122.30     (3) the federal government; 
122.31     (4) a federally recognized American Indian tribe; or 
122.32     (5) a country other than the United States. 
122.33     Sec. 6.  Minnesota Statutes 2000, section 354.536, 
122.34  subdivision 1, is amended to read: 
122.35     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
122.36  teacher who has at least three years of allowable service credit 
123.1   with the teachers retirement association is entitled to purchase 
123.2   up to ten years of allowable and formula service credit for 
123.3   developmental achievement center, nonprofit community-based 
123.4   corporation, private, or parochial school teaching service by 
123.5   making payment under section 356.55, provided that the teacher 
123.6   is not entitled to receive a current or deferred age and service 
123.7   retirement annuity or disability benefit from the applicable 
123.8   employer-sponsored pension plan and has not purchased service 
123.9   credit from the applicable defined benefit employer-sponsored 
123.10  pension plan for that service. 
123.11     Sec. 7.  Minnesota Statutes 2000, section 354.539, is 
123.12  amended to read: 
123.13     354.539 [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO 
123.14  PURCHASE SERVICE CREDIT.] 
123.15     (a) Unless prohibited by or subject to a penalty under 
123.16  federal law, a teacher who is a participant in the college 
123.17  supplemental retirement plan established under chapter 354C may 
123.18  utilize the teacher's supplemental plan account to purchase 
123.19  service credit under sections 354.53, 354.533, 354.534, 354.535, 
123.20  354.536, 354.537, ~~and~~ 354.538, 354.541, and 354.542 or to repay 
123.21  a refund under section 354.50. 
123.22     (b) At the request of a member, if determined by the 
123.23  executive director to be eligible to purchase service credit, 
123.24  the executive director shall notify the board of the Minnesota 
123.25  state colleges and universities system of the cost of the 
123.26  purchase and shall request the transfer of funds from the 
123.27  member's college supplemental retirement account to the teachers 
123.28  retirement association.  Upon receipt of the full prior service 
123.29  credit purchase payment amount, the teachers retirement 
123.30  association shall grant the requested allowable and formula 
123.31  service credit. 
123.32     Sec. 8.  [354.541] [PRIOR UNIVERSITY OF MINNESOTA TEACHING 
123.33  SERVICE CREDIT PURCHASE.] 
123.34     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
123.35  teacher who has at least three years of allowable service credit 
123.36  with the teachers retirement association is entitled to purchase 
124.1   up to ten years of allowable and formula service credit for 
124.2   University of Minnesota teaching service by making payment under 
124.3   section 356.55, provided the teacher is not entitled to receive 
124.4   a current or deferred age and service retirement annuity or 
124.5   disability benefit and has not purchased service credit from 
124.6   another defined benefit public employee pension plan for that 
124.7   University of Minnesota teaching service.  
124.8      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
124.9   desires to purchase service credit under subdivision 1 must 
124.10  apply with the executive director to make the purchase.  The 
124.11  application must include all necessary documentation of the 
124.12  teacher's qualifications to make the purchase, signed written 
124.13  permission to allow the executive director to request and 
124.14  receive necessary verification of applicable facts and 
124.15  eligibility requirements, and any other relevant information 
124.16  that the executive director may require.  Payment must be made 
124.17  before the teacher's effective date of retirement. 
124.18     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
124.19  service credit for the purchase period must be granted by the 
124.20  teachers retirement association to the purchasing teacher on 
124.21  receipt of the purchase payment amount. 
124.22     Sec. 9.  [354.542] [PRIOR TEACHING SERVICE CREDIT PURCHASE 
124.23  BY IRAP MEMBERS WITH DEFERRED TEACHERS RETIREMENT ASSOCIATION 
124.24  CREDIT.] 
124.25     A person in covered employment under section 354B.20, 
124.26  subdivision 4, who is a participant in the individual retirement 
124.27  account plan authorized by chapter 354B and who has at least 
124.28  three years of allowable service credit with the teachers 
124.29  retirement association may purchase service credit as provided 
124.30  in sections 354.533 to 354.538 and 354.541. 
124.31     Sec. 10.  Minnesota Statutes 2000, section 354A.011, 
124.32  subdivision 4, is amended to read: 
124.33     Subd. 4.  [ALLOWABLE SERVICE.] "Allowable service" means 
124.34  any service rendered by a teacher during a period in which the 
124.35  teacher receives salary from which employee contribution salary 
124.36  deductions are made to and credited by the teachers retirement 
125.1   fund association ~~or~~, any service rendered by a person during any 
125.2   period where assessments or payments in lieu of salary 
125.3   deductions were made if authorized by any law or provision of 
125.4   the association's articles of incorporation or bylaws then in 
125.5   effect or pursuant to section 354A.091, 354A.092, 354A.093, or 
125.6   354A.094, or service credit purchased under section 356.555. 
125.7      Sec. 11.  Minnesota Statutes 2000, section 354A.098, 
125.8   subdivision 1, is amended to read: 
125.9      Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) A 
125.10  teacher who has at least three years of allowable service credit 
125.11  with one of the retirement fund associations under this chapter 
125.12  and who rendered out-of-state teaching service for an 
125.13  educational institution established and operated by another 
125.14  ~~state, governmental subdivision of another state, or the federal~~ 
125.15  ~~government~~ governmental entity specified in paragraph (b) is 
125.16  entitled to purchase up to ten years of allowable service credit 
125.17  for that out-of-state service by making payment under section 
125.18  356.55, provided the teacher is not entitled to receive a 
125.19  current or deferred age and service retirement annuity or 
125.20  disability benefit and has not purchased service credit from 
125.21  another defined benefit public employee pension plan for that 
125.22  out-of-state teaching service.  Payment must be made before the 
125.23  teacher's effective date of retirement.  
125.24     (b) An eligible governmental entity for purposes of 
125.25  paragraph (a) is: 
125.26     (1) another state of the United States; 
125.27     (2) a governmental subdivision of another state of the 
125.28  United States; 
125.29     (3) the federal government; 
125.30     (4) a federally recognized American Indian tribe; or 
125.31     (5) a public education institution in a foreign country. 
125.32     Sec. 12.  Minnesota Statutes 2000, section 354A.101, 
125.33  subdivision 1, is amended to read: 
125.34     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
125.35  teacher who has at least three years of allowable service credit 
125.36  with the teachers retirement fund association is entitled to 
126.1   purchase up to ten years of allowable service credit 
126.2   for developmental achievement center or nonprofit 
126.3   community-based corporation, private, or parochial school 
126.4   teaching service by making payment under section 356.55, 
126.5   provided that the teacher is not entitled to receive a current 
126.6   or deferred age and service retirement annuity or disability 
126.7   benefit from the applicable employer-sponsored pension plan and 
126.8   has not purchased service credit from the applicable defined 
126.9   benefit employer-sponsored pension plan for that service. 
126.10     Sec. 13.  Minnesota Statutes 2000, section 354A.106, is 
126.11  amended to read: 
126.12     354A.106 [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO 
126.13  PURCHASE SERVICE CREDIT.] 
126.14     (a) Unless prohibited by or subject to a penalty under 
126.15  federal law, a teacher who is a participant in the college 
126.16  supplemental retirement plan established under chapter 354C may 
126.17  utilize the teacher's supplemental plan account to purchase 
126.18  service credit under sections 354A.097, 354A.098, 354A.099, 
126.19  354A.101, 354A.102, 354A.103, ~~and~~ 354A.104, 354A.107, and 
126.20  354A.108, or to repay a refund under section 354A.38. 
126.21     (b) At the request of a member, if determined by the 
126.22  executive director of the applicable teachers retirement fund 
126.23  association to be eligible to purchase service credit, the 
126.24  executive director shall notify the board of the Minnesota state 
126.25  colleges and universities system of the cost of the purchase and 
126.26  shall request the transfer of funds from the member's college 
126.27  supplemental retirement account to the applicable teachers 
126.28  retirement fund association.  Upon receipt of the full prior 
126.29  service credit purchase payment amount, the applicable teachers 
126.30  retirement fund association shall grant the requested allowable 
126.31  and formula service credit. 
126.32     Sec. 14.  [354A.107] [PRIOR UNIVERSITY OF MINNESOTA 
126.33  TEACHING SERVICE CREDIT PURCHASE.] 
126.34     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
126.35  teacher who has at least three years of allowable service credit 
126.36  with the teachers retirement fund association is entitled to 
127.1   purchase up to ten years of allowable service credit for 
127.2   University of Minnesota teaching service by making payment under 
127.3   section 356.55, provided the teacher is not entitled to receive 
127.4   a current or deferred age and service retirement annuity or 
127.5   disability benefit and has not purchased service credit from 
127.6   another defined benefit public employee pension plan for that 
127.7   University of Minnesota teaching service.  
127.8      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
127.9   desires to purchase service credit under subdivision 1 must 
127.10  apply with the executive director to make the purchase.  The 
127.11  application must include all necessary documentation of the 
127.12  teacher's qualifications to make the purchase, signed written 
127.13  permission to allow the executive director to request and 
127.14  receive necessary verification of applicable facts and 
127.15  eligibility requirements, and any other relevant information 
127.16  that the executive director may require.  Payment must be made 
127.17  before the teacher's effective date of retirement. 
127.18     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
127.19  for the purchase period must be granted by the teachers 
127.20  retirement association to the purchasing teacher on receipt of 
127.21  the purchase payment amount. 
127.22     Sec. 15.  [354A.108] [PRIOR TEACHING SERVICE CREDIT 
127.23  PURCHASE BY IRAP MEMBERS WITH DEFERRED TEACHERS RETIREMENT 
127.24  ASSOCIATION CREDIT.] 
127.25     A teacher who is a participant in the individual retirement 
127.26  account plan authorized by chapter 354B and who has at least 
127.27  three years of allowable service credit with a teachers 
127.28  retirement fund association may purchase service credit as 
127.29  provided in sections 354A.091 to 354A.099 and 354A.101 to 
127.30  354A.107. 
127.31     Sec. 16.  Minnesota Statutes 2000, section 356.55, 
127.32  subdivision 7, is amended to read: 
127.33     Subd. 7.  [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 
127.34  PROCEDURE.] (a) This section expires and is repealed on July 
127.35  1, ~~2001~~ 2003. 
127.36     (b) Authority for any public pension plan to accept a prior 
128.1   service credit payment calculated in a timely fashion under this 
128.2   section expires on October 1, ~~2001~~ 2003. 
128.3      Sec. 17.  [356.555] [PARENTAL OR FAMILY LEAVE SERVICE 
128.4   CREDIT PURCHASE.] 
128.5      Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZATION.] (a)
128.6   Notwithstanding any provision to the contrary of the laws 
128.7   governing a plan enumerated in subdivision 4, a member of the 
128.8   pension plan who has at least three years of allowable service 
128.9   covered by the applicable pension plan and who was granted by 
128.10  the employer a parental leave of absence as defined in paragraph 
128.11  (b), or who was granted by the employer a family leave of 
128.12  absence as defined in paragraph (c), or who had a parental or 
128.13  family-related break in employment, as defined in paragraph (d), 
128.14  for which the person did not previously receive service credit 
128.15  or for which the person did not receive or purchase service 
128.16  credit from another defined benefit public employee pension 
128.17  plan, is entitled to purchase the actual period of the leave or 
128.18  of the break in service, up to five years, of allowable service 
128.19  credit in the applicable retirement plan.  The purchase payment 
128.20  amount is governed by section 356.55. 
128.21     (b) For purposes of this section, a parental leave of 
128.22  absence is a temporary period of interruption of or separation 
128.23  from active employment for the purposes of handling maternity or 
128.24  paternity duties that has been approved by the employing unit 
128.25  and that includes the right of reinstatement to employment. 
128.26     (c) For purposes of this section, a family leave of absence 
128.27  is a family leave under United States Code, title 42, section 
128.28  12631, as amended. 
128.29     (d) For purposes of this section, a parental or 
128.30  family-related break in employment is a period following a 
128.31  termination of active employment primarily for the purpose of 
128.32  the birth of a child, the adoption of a child, or the provision 
128.33  of care to a near relative or in-law, after which the person 
128.34  returned to the prior employing unit or to an employing unit 
128.35  covered by the same pension plan that provided retirement 
128.36  coverage immediately prior to the termination of employment. 
129.1      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A person who 
129.2   desires to purchase service credit under subdivision 1 must 
129.3   apply for the service credit purchase with the chief 
129.4   administrative officer of the enumerated pension plan.  The 
129.5   application must include all necessary documentation of the 
129.6   qualifications of the person to make the purchase, signed 
129.7   written permission to allow the chief administrative officer to 
129.8   request and receive necessary verification of all applicable 
129.9   facts and eligibility requirements, and any other relevant 
129.10  information that the chief administrative officer may require. 
129.11     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
129.12  in the applicable enumerated pension plan for the purchase 
129.13  period must be granted to the purchaser upon receipt of the 
129.14  purchase payment amount calculated under section 356.55.  
129.15  Payment of the purchase amount must be made before the person 
129.16  retires. 
129.17     Subd. 4.  [COVERED PENSION PLANS.] This section applies to 
129.18  the following pension plans: 
129.19     (1) general state employees retirement plan governed by 
129.20  chapter 352; 
129.21     (2) correctional state employees retirement plan governed 
129.22  by chapter 352; 
129.23     (3) general public employees retirement plan governed by 
129.24  chapter 353; 
129.25     (4) public employees police and fire plan governed by 
129.26  chapter 353; 
129.27     (5) teachers retirement plan governed by chapter 354; 
129.28     (6) Minneapolis teachers retirement fund association 
129.29  governed by chapter 354A; 
129.30     (7) Saint Paul teachers retirement fund association 
129.31  governed by chapter 354A; 
129.32     (8) Duluth teachers retirement fund association governed by 
129.33  chapter 354A; 
129.34     (9) Minneapolis employees retirement plan governed by 
129.35  chapter 422A; 
129.36     (10) Minneapolis police relief association governed by 
130.1   chapter 423B; and 
130.2      (11) Minneapolis fire department relief association 
130.3   governed by sections 69.25 to 69.53 and augmented by Laws 1959, 
130.4   chapters 213, 491, and 568, and other special local legislation. 
130.5      Sec. 18.  Minnesota Statutes 2000, section 422A.155, is 
130.6   amended to read: 
130.7      422A.155 [DETERMINATION OF SERVICE CREDIT.] 
130.8      (a) Notwithstanding the provisions of section 422A.15, 
130.9   subdivision 1, no employee of the contributing class of the 
130.10  Minneapolis employees retirement fund shall be entitled to 
130.11  receive a year of service credit during the employee's final 
130.12  year of service unless the employee is employed and has received 
130.13  compensation from the city of Minneapolis or other applicable 
130.14  employing unit during each of the calendar months making up the 
130.15  year for which the employee would usually be employed.  Any 
130.16  employee of the contributing class who is employed and receives 
130.17  compensation in fewer than the usual number of calendar months 
130.18  during the final year of service shall receive credit for that 
130.19  portion of a year that the employee's completed months of 
130.20  employment and receipt of compensation bears to the usual number 
130.21  of months which the employee would usually be employed.  
130.22     (b) Notwithstanding any provision of this chapter to the 
130.23  contrary, service credit also means a period purchased under 
130.24  section 356.555. 
130.25     Sec. 19.  Minnesota Statutes 2000, section 423B.01, is 
130.26  amended by adding a subdivision to read: 
130.27     Subd. 3a.  [ALLOWABLE SERVICE CREDIT.] "Allowable service 
130.28  credit" means: 
130.29     (1) service rendered as an active member; 
130.30     (2) service as an elected public official under section 
130.31  423B.03; 
130.32     (3) military service credited under section 423B.09, 
130.33  subdivision 3; and 
130.34     (4) a period of service purchased under section 356.555. 
130.35     Sec. 20.  [MINNEAPOLIS FIRE DEPARTMENT RELIEF ASSOCIATION; 
130.36  PARENTAL LEAVE PURCHASE.] 
131.1      Notwithstanding any provision of Minnesota Statutes, 
131.2   sections 69.25 to 69.53; Laws 1959, chapters 213, 491, and 568; 
131.3   or any other special local law governing the Minneapolis fire 
131.4   department relief association to the contrary, service credit 
131.5   for the purposes of calculating service pensions, disability 
131.6   benefits, or survivor benefits includes a period purchased under 
131.7   Minnesota Statutes, section 356.555. 
131.8      Sec. 21.  [EXPIRATION DATE.] 
131.9      (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 
131.10  18, 19, and 20 expire May 16, 2003. 
131.11     (b) Sections 9 and 15 expire May 16, 2002. 
131.12     Sec. 22.  [EFFECTIVE DATE.] 
131.13     (a) Sections 6 and 9 are effective the day following final 
131.14  enactment. 
131.15     (b) Sections 1 to 5, 7, 8, and 10 to 21 are effective July 
131.16  1, 2001. 
131.17                             ARTICLE 7  
131.18           POSTRETIREMENT HEALTH CARE INSURANCE COVERAGE
131.19     Section 1.  [352.98] [POSTRETIREMENT HEALTH CARE SAVINGS 
131.20  PLAN.] 
131.21     Subdivision 1.  [PLAN CREATED.] The Minnesota state 
131.22  retirement system shall establish a plan or plans, known as 
131.23  postretirement health care savings plans, through which public 
131.24  employers and employees may save to cover postretirement health 
131.25  care costs.  The Minnesota state retirement system shall make 
131.26  available one or more trusts, including a governmental trust or 
131.27  governmental trusts, authorized under the Internal Revenue Code 
131.28  to be eligible for tax-preferred or tax-free treatment through 
131.29  which employers and employees can save to cover postretirement 
131.30  health care costs.  
131.31     Subd. 2.  [CONTRACTING AUTHORIZED.] The Minnesota state 
131.32  retirement system is authorized to administer the plan and to 
131.33  contract with public and private entities to provide investment 
131.34  services, recordkeeping, benefit payments, and other functions 
131.35  necessary for the administration of the plan.  If allowed by the 
131.36  Minnesota state board of investment, the Minnesota state board 
132.1   of investment supplemental investment funds may be offered as 
132.2   investment options under the postretirement savings plan or 
132.3   plans.  
132.4      Subd. 3.  [CONTRIBUTIONS.] (a) Contributions to the plan 
132.5   shall be determined through a personnel policy or in a 
132.6   collective bargaining agreement of a public employer with the 
132.7   exclusive representative of the covered employees in an 
132.8   appropriate unit.  The Minnesota state retirement system may 
132.9   offer different types of trusts permitted under the Internal 
132.10  Revenue Code to best meet the needs of different employee units. 
132.11     (b) Contributions to the plan by or on behalf of the 
132.12  employee shall be held in trust for reimbursement of employee 
132.13  and dependent health-related expenses following retirement from 
132.14  public employment.  The Minnesota state retirement system shall 
132.15  maintain a separate account of the contributions made by or on 
132.16  behalf of each participant and the earnings thereon.  The 
132.17  Minnesota state retirement system shall make available a limited 
132.18  range of investment options, and each employee may direct the 
132.19  investment of the accumulations in the employee's account among 
132.20  the investment options made available by the Minnesota state 
132.21  retirement system.  At the request of a participating employer 
132.22  and employee group, the Minnesota state retirement system may 
132.23  determine how the assets of the affected employer and employee 
132.24  group should be invested.  
132.25     (c) This section does not obligate a public employer to 
132.26  meet and negotiate in good faith with the exclusive bargaining 
132.27  representative of any public employee group regarding an 
132.28  employer contribution to a postretirement health care savings 
132.29  plan authorized by this section and section 356.24, subdivision 
132.30  1, clause (7).  It is not the intent of the legislature to 
132.31  authorize the state to incur new funding obligations for the 
132.32  costs of retiree health care or the costs of administering 
132.33  retiree health care plans or accounts.  
132.34     Subd. 4.  [REIMBURSEMENT FOR HEALTH-RELATED 
132.35  EXPENSES.] Following termination of public service, the 
132.36  Minnesota state retirement system shall reimburse employees at 
133.1   least quarterly for submitted health-related expenses, until the 
133.2   employee exhausts the accumulation in the employee's account.  
133.3   If an employee dies prior to exhausting the employee's account 
133.4   balance, the employee's spouse or dependents shall be eligible 
133.5   to be reimbursed for health care expenses from the account until 
133.6   the account balance is exhausted.  If an account balance remains 
133.7   after the death of a participant and all of the participant's 
133.8   legal dependents, the remainder of the account shall be paid to 
133.9   the employee's beneficiaries or, if none, to the employee's 
133.10  estate.  
133.11     Subd. 5.  [FEES.] The Minnesota state retirement plan is 
133.12  authorized to charge uniform fees to participants to cover the 
133.13  ongoing cost of operating the plan.  Any fees not needed shall 
133.14  revert to participant accounts or be used to reduce plan fees 
133.15  the following year.  The Minnesota state retirement system is 
133.16  authorized to charge participating employers a fee, not to 
133.17  exceed one-sixth of the federal insurance contribution act 
133.18  savings realized by the employer as a result of participating in 
133.19  the plan, until the initial costs of establishing the plan or 
133.20  plans authorized by this section are recovered, or $75,000, 
133.21  whichever is less.  
133.22     Subd. 6.  [ADVISORY COMMITTEE.] (a) The Minnesota state 
133.23  retirement system shall establish a participant advisory 
133.24  committee for the plan, made up of one representative appointed 
133.25  by each employee unit participating in the plan.  Each 
133.26  participating unit shall be responsible for the expenses of its 
133.27  own representative.  
133.28     (b) The advisory committee shall meet at least twice per 
133.29  year and shall be consulted on plan offerings and vendor 
133.30  selection.  By October 1 of each year, the Minnesota state 
133.31  retirement system shall give the advisory committee a statement 
133.32  of fees collected and the use of the fees.  
133.33     Subd. 7.  [CONTRACTING WITH PRIVATE ENTITIES.] Nothing in 
133.34  this section shall prohibit employers from contracting with 
133.35  private entities to provide for postretirement health care 
133.36  reimbursement plans.  
134.1      Sec. 2.  Minnesota Statutes 2000, section 356.24, 
134.2   subdivision 1, is amended to read: 
134.3      Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
134.4   for a school district or other governmental subdivision or state 
134.5   agency to levy taxes for, or contribute public funds to a 
134.6   supplemental pension or deferred compensation plan that is 
134.7   established, maintained, and operated in addition to a primary 
134.8   pension program for the benefit of the governmental subdivision 
134.9   employees other than: 
134.10     (1) to a supplemental pension plan that was established, 
134.11  maintained, and operated before May 6, 1971; 
134.12     (2) to a plan that provides solely for group health, 
134.13  hospital, disability, or death benefits; 
134.14     (3) to the individual retirement account plan established 
134.15  by chapter 354B; 
134.16     (4) to a plan that provides solely for severance pay under 
134.17  section 465.72 to a retiring or terminating employee; 
134.18     (5) for employees other than personnel employed by the 
134.19  state university board or the community college board and 
134.20  covered by the board of trustees of the Minnesota state colleges 
134.21  and universities supplemental retirement plan under chapter 
134.22  354C, if provided for in a personnel policy of the public 
134.23  employer or in the collective bargaining agreement between the 
134.24  public employer and the exclusive representative of public 
134.25  employees in an appropriate unit, in an amount matching employee 
134.26  contributions on a dollar for dollar basis, but not to exceed an 
134.27  employer contribution of $2,000 a year per employee; 
134.28     (i) to the state of Minnesota deferred compensation plan 
134.29  under section 352.96; or 
134.30     (ii) in payment of the applicable portion of the 
134.31  contribution made to any investment eligible under section 
134.32  403(b) of the Internal Revenue Code, if the employing unit has 
134.33  complied with any applicable pension plan provisions of the 
134.34  Internal Revenue Code with respect to the tax-sheltered annuity 
134.35  program during the preceding calendar year; ~~or~~ 
134.36     (6) for personnel employed by the state university board or 
135.1   the community college board and not covered by clause (5), to 
135.2   the supplemental retirement plan under chapter 354C, if provided 
135.3   for in a personnel policy or in the collective bargaining 
135.4   agreement of the public employer with the exclusive 
135.5   representative of the covered employees in an appropriate unit, 
135.6   in an amount matching employee contributions on a dollar for 
135.7   dollar basis, but not to exceed an employer contribution of 
135.8   $2,700 a year for each employee; 
135.9      (7) to a supplemental plan or to a governmental trust to 
135.10  save for postretirement health care expenses qualified for 
135.11  tax-preferred treatment under the Internal Revenue Code, if 
135.12  provided for in a personnel policy or in the collective 
135.13  bargaining agreement of a public employer with the exclusive 
135.14  representative of the covered employees in an appropriate unit; 
135.15  or 
135.16     (8) to the laborer's national industrial pension fund for 
135.17  the employees of a governmental subdivision who are covered by a 
135.18  collective bargaining agreement that provides for coverage by 
135.19  that fund and that sets forth a fund contribution rate, but not 
135.20  to exceed an employer contribution of $2,000 per year per 
135.21  employee. 
135.22     Sec. 3.  [EFFECTIVE DATE.] 
135.23     Sections 1 and 2 are effective July 1, 2001. 
135.24                             ARTICLE 8
135.25         STATE PATROL RETIREMENT PLAN MEMBERSHIP EXPANSION
135.26     Section 1.  Minnesota Statutes 2000, section 352.01, 
135.27  subdivision 2b, is amended to read: 
135.28     Subd. 2b.  [EXCLUDED EMPLOYEES.] "State employee" does not 
135.29  include: 
135.30     (1) elective state officers; 
135.31     (2) students employed by the University of Minnesota, the 
135.32  state universities, and community colleges unless approved for 
135.33  coverage by the board of regents or the board of trustees of the 
135.34  Minnesota state colleges and universities, as the case may be; 
135.35     (3) employees who are eligible for membership in the state 
135.36  teachers retirement association except employees of the 
136.1   department of children, families, and learning who have chosen 
136.2   or may choose to be covered by the Minnesota state retirement 
136.3   system instead of the teachers retirement association; 
136.4      (4) employees of the University of Minnesota who are 
136.5   excluded from coverage by action of the board of regents; 
136.6      (5) officers and enlisted personnel in the national guard 
136.7   and the naval militia who are assigned to permanent peacetime 
136.8   duty and who under federal law are or are required to be members 
136.9   of a federal retirement system; 
136.10     (6) election officers; 
136.11     (7) persons engaged in public work for the state but 
136.12  employed by contractors when the performance of the contract is 
136.13  authorized by the legislature or other competent authority; 
136.14     (8) officers and employees of the senate and house of 
136.15  representatives or a legislative committee or commission who are 
136.16  temporarily employed; 
136.17     (9) receivers, jurors, notaries public, and court employees 
136.18  who are not in the judicial branch as defined in section 43A.02, 
136.19  subdivision 25, except referees and adjusters employed by the 
136.20  department of labor and industry; 
136.21     (10) patient and inmate help in state charitable, penal, 
136.22  and correctional institutions including the Minnesota veterans 
136.23  home; 
136.24     (11) persons employed for professional services where the 
136.25  service is incidental to regular professional duties and whose 
136.26  compensation is paid on a per diem basis; 
136.27     (12) employees of the Sibley House Association; 
136.28     (13) the members of any state board or commission who serve 
136.29  the state intermittently and are paid on a per diem basis; the 
136.30  secretary, secretary-treasurer, and treasurer of those boards if 
136.31  their compensation is $5,000 or less per year, or, if they are 
136.32  legally prohibited from serving more than three years; and the 
136.33  board of managers of the state agricultural society and its 
136.34  treasurer unless the treasurer is also its full-time secretary; 
136.35     (14) state troopers; 
136.36     (15) temporary employees of the Minnesota state fair 
137.1   employed on or after July 1 for a period not to extend beyond 
137.2   October 15 of that year; and persons employed at any time by the 
137.3   state fair administration for special events held on the 
137.4   fairgrounds; 
137.5      (16) emergency employees in the classified service; except 
137.6   that if an emergency employee, within the same pay period, 
137.7   becomes a provisional or probationary employee on other than a 
137.8   temporary basis, the employee shall be considered a "state 
137.9   employee" retroactively to the beginning of the pay period; 
137.10     (17) persons described in section 352B.01, subdivision 2, 
137.11  clauses (2) to ~~(5)~~ (6); 
137.12     (18) temporary employees in the classified service, and 
137.13  temporary employees in the unclassified service appointed for a 
137.14  definite period of not more than six months and employed less 
137.15  than six months in any one-year period; 
137.16     (19) trainee employees, except those listed in subdivision 
137.17  2a, clause (10); 
137.18     (20) persons whose compensation is paid on a fee basis; 
137.19     (21) state employees who in any year have credit for 12 
137.20  months service as teachers in the public schools of the state 
137.21  and as teachers are members of the teachers retirement 
137.22  association or a retirement system in St. Paul, Minneapolis, or 
137.23  Duluth; 
137.24     (22) employees of the adjutant general employed on an 
137.25  unlimited intermittent or temporary basis in the classified and 
137.26  unclassified service for the support of army and air national 
137.27  guard training facilities; 
137.28     (23) chaplains and nuns who are excluded from coverage 
137.29  under the federal Old Age, Survivors, Disability, and Health 
137.30  Insurance Program for the performance of service as specified in 
137.31  United States Code, title 42, section 410(a)(8)(A), as amended, 
137.32  if no irrevocable election of coverage has been made under 
137.33  section 3121(r) of the Internal Revenue Code of 1986, as amended 
137.34  through December 31, 1992; 
137.35     (24) examination monitors employed by departments, 
137.36  agencies, commissions, and boards to conduct examinations 
138.1   required by law; 
138.2      (25) persons appointed to serve as members of fact-finding 
138.3   commissions or adjustment panels, arbitrators, or labor referees 
138.4   under chapter 179; 
138.5      (26) temporary employees employed for limited periods under 
138.6   any state or federal program for training or rehabilitation 
138.7   including persons employed for limited periods from areas of 
138.8   economic distress except skilled and supervisory personnel and 
138.9   persons having civil service status covered by the system; 
138.10     (27) full-time students employed by the Minnesota 
138.11  historical society intermittently during part of the year and 
138.12  full-time during the summer months; 
138.13     (28) temporary employees, appointed for not more than six 
138.14  months, of the metropolitan council and of any of its statutory 
138.15  boards, if the board members are appointed by the metropolitan 
138.16  council; 
138.17     (29) persons employed in positions designated by the 
138.18  department of employee relations as student workers; 
138.19     (30) members of trades employed by the successor to the 
138.20  metropolitan waste control commission with trade union pension 
138.21  plan coverage under a collective bargaining agreement first 
138.22  employed after June 1, 1977; 
138.23     (31) persons employed in subsidized on-the-job training, 
138.24  work experience, or public service employment as enrollees under 
138.25  the federal Comprehensive Employment and Training Act after 
138.26  March 30, 1978, unless the person has as of the later of March 
138.27  30, 1978, or the date of employment sufficient service credit in 
138.28  the retirement system to meet the minimum vesting requirements 
138.29  for a deferred annuity, or the employer agrees in writing on 
138.30  forms prescribed by the director to make the required employer 
138.31  contributions, including any employer additional contributions, 
138.32  on account of that person from revenue sources other than funds 
138.33  provided under the federal Comprehensive Employment and Training 
138.34  Act, or the person agrees in writing on forms prescribed by the 
138.35  director to make the required employer contribution in addition 
138.36  to the required employee contribution; 
139.1      (32) off-duty peace officers while employed by the 
139.2   metropolitan council; 
139.3      (33) persons who are employed as full-time police officers 
139.4   by the metropolitan council and as police officers are members 
139.5   of the public employees police and fire fund; 
139.6      (34) persons who are employed as full-time firefighters by 
139.7   the department of military affairs and as firefighters are 
139.8   members of the public employees police and fire fund; 
139.9      (35) foreign citizens with a work permit of less than three 
139.10  years, or an H-1b/JV visa valid for less than three years of 
139.11  employment, unless notice of extension is supplied which allows 
139.12  them to work for three or more years as of the date the 
139.13  extension is granted, in which case they are eligible for 
139.14  coverage from the date extended; and 
139.15     (36) persons who are employed by the board of trustees of 
139.16  the Minnesota state colleges and universities and who elect to 
139.17  remain members of the public employees retirement association or 
139.18  the Minneapolis employees retirement fund, whichever applies, 
139.19  under section 136C.75. 
139.20     Sec. 2.  Minnesota Statutes 2000, section 352B.01, 
139.21  subdivision 2, is amended to read: 
139.22     Subd. 2.  [MEMBER.] "Member" means: 
139.23     ~~(a) persons referred to and~~ (1) a state patrol member 
139.24  currently employed after June 30, 1943, under ~~Laws 1929, chapter~~ 
139.25  ~~355, as amended or supplemented, currently employed~~ section 
139.26  299D.03 by the state, who is a peace officer under section 
139.27  626.84, and whose ~~salaries~~ salary or compensation is paid out of 
139.28  state funds; 
139.29     ~~(b)~~ (2) a conservation officer employed under section 
139.30  97A.201, currently employed by the state, whose salary or 
139.31  compensation is paid out of state funds; 
139.32     ~~(c)~~ (3) a crime bureau officer who was employed by the 
139.33  crime bureau and was a member of the highway patrolmen's 
139.34  retirement fund on July 1, 1978, whether or not that person has 
139.35  the power of arrest by warrant after that date, or who is 
139.36  employed as police personnel, with powers of arrest by warrant 
140.1   under section 299C.04, and who is currently employed by the 
140.2   state, and whose salary or compensation is paid out of state 
140.3   funds; 
140.4      ~~(d)~~ (4) a person who is employed by the state in the 
140.5   department of public safety in a data processing management 
140.6   position with salary or compensation paid from state funds, who 
140.7   was a crime bureau officer covered by the state patrol 
140.8   retirement plan on August 15, 1987, and who was initially hired 
140.9   in the data processing management position within the department 
140.10  during September 1987, or January 1988, with membership 
140.11  continuing for the duration of the person's employment in that 
140.12  position, whether or not the person has the power of arrest by 
140.13  warrant after August 15, 1987; ~~and~~ 
140.14     ~~(e)~~ (5) a public safety ~~employees~~ employee defined as a 
140.15  peace ~~officers~~ officer in section 626.84, subdivision 1, 
140.16  paragraph (c), and employed with the division of alcohol and 
140.17  gambling enforcement under section 299L.01; and 
140.18     (6) a fugitive apprehension unit officer after October 31, 
140.19  2000, employed by the office of special investigations of the 
140.20  department of corrections who is a peace officer under section 
140.21  626.84.  
140.22     Sec. 3.  [DISPOSITION OF CERTAIN CONTRIBUTIONS.] 
140.23     (a) The employee contributions for the period November 1, 
140.24  2000, to the effective date of this section for a person 
140.25  described in Minnesota Statutes, section 352B.01, subdivision 2, 
140.26  clause (6), must be transferred, with 8.5 percent per annum 
140.27  interest for the period from the date of the contribution to the 
140.28  date of transfer, from the general state employees retirement 
140.29  plan of the Minnesota state retirement system to the state 
140.30  patrol retirement fund. 
140.31     (b) The employer contributions associated with the employee 
140.32  contributions governed by paragraph (a) also must be transferred 
140.33  for the period from the date of the contribution to the date of 
140.34  transfer, with 8.5 percent per annum interest, from the general 
140.35  state employees retirement plan of the Minnesota state 
140.36  retirement system to the state patrol retirement fund. 
141.1      (c) A person described in Minnesota Statutes, section 
141.2   352B.01, subdivision 2, clause (6), must pay, by additional 
141.3   payroll deduction, to the state patrol retirement fund an amount 
141.4   equal to the difference between the transferred employee 
141.5   contributions and interest and the full member contribution 
141.6   under Minnesota Statutes, section 352B.02, subdivision 1a, plus 
141.7   8.5 percent per annum interest on the balance from March 1, 
141.8   2001, to the date the additional payment is complete.  The 
141.9   additional payment must be completed by December 31, 2001, or by 
141.10  the date of retirement, whichever is earlier. 
141.11     (d) The department of corrections, for each person 
141.12  described in Minnesota Statutes, section 352B.01, subdivision 2, 
141.13  clause (6), must pay, in a lump sum on July 1, 2001, to the 
141.14  state patrol retirement fund an amount equal to the difference 
141.15  between the transferred employer contributions and interest and 
141.16  the full employer contribution under Minnesota Statutes, section 
141.17  352B.02, subdivision 1c, plus 8.5 percent per annum interest on 
141.18  the amount from March 1, 2001, to July 1, 2001. 
141.19     Sec. 4.  [EFFECTIVE DATE.] 
141.20     Sections 1 and 2 are effective retroactively to November 1, 
141.21  2000.  Section 3 is effective the day following final enactment. 
141.22                             ARTICLE 9 
141.23           PRIVATIZED PUBLIC EMPLOYEE DISABILITY COVERAGE
141.24     Section 1.  [352F.051] [CONTINUATION OF DISABILITY 
141.25  COVERAGE.] 
141.26     Subdivision 1.  [ELIGIBILITY.] A terminated hospital 
141.27  employee who is totally and permanently disabled under section 
141.28  352.01, subdivision 17, and who had a medically documented 
141.29  preexisting condition of the disability before January 1, 1997, 
141.30  may apply under Minnesota Statutes 1996, section 352.113, 
141.31  subdivision 1, for a disability benefit. 
141.32     Subd. 2.  [CALCULATION OF BENEFITS.] A person qualifying 
141.33  under subdivision 1 is entitled to receive a disability benefit 
141.34  calculated under Minnesota Statutes 1996, section 352.113, 
141.35  subdivision 3.  The disability benefit must be augmented under 
141.36  section 352.72, subdivision 2, from January 1, 1997, to the date 
142.1   on which the disability benefit begins to accrue. 
142.2      Subd. 3.  [APPLICABILITY OF GENERAL LAW.] Except as 
142.3   otherwise provided, section 352.113 applies to a person who 
142.4   qualifies for disability under subdivision 1. 
142.5      Sec. 2.  [353F.051] [CONTINUATION OF DISABILITY COVERAGE.] 
142.6      Subdivision 1.  [ELIGIBILITY.] A terminated medical 
142.7   facility or other public employing unit employee who is totally 
142.8   and permanently disabled under Minnesota Statutes 1998, section 
142.9   353.01, subdivision 19, and who had a medically documented 
142.10  preexisting condition of the disability before the termination 
142.11  of coverage, may apply for a disability benefit. 
142.12     Subd. 2.  [CALCULATION OF BENEFITS.] A person qualifying 
142.13  under subdivision 1 is entitled to receive a disability benefit 
142.14  calculated under Minnesota Statutes 1998, section 353.33, 
142.15  subdivision 3.  The disability benefit must be augmented under 
142.16  Minnesota Statutes 1998, section 353.71, subdivision 2, from the 
142.17  date of termination to the date the disability benefit begins to 
142.18  accrue. 
142.19     Subd. 3.  [APPLICABILITY OF GENERAL LAW.] Except as 
142.20  otherwise provided, Minnesota Statutes 1998, section 353.33, 
142.21  applies to a person who qualifies for disability under 
142.22  subdivision 1. 
142.23     Sec. 3.  [EFFECTIVE DATE.] 
142.24     (a) Sections 1 and 2 are effective the day following final 
142.25  enactment. 
142.26     (b) A disability benefit under section 1 is payable 
142.27  retroactively to March 1, 2000, or to the first of the month 
142.28  next following the date on which the eligible person attempted 
142.29  to apply for a disability benefit from the general state 
142.30  employees retirement plan of the Minnesota state retirement 
142.31  system, whichever is later. 
142.32                             ARTICLE 10 
142.33                 PERA-GENERAL MEMBERSHIP INCLUSIONS
142.34     Section 1.  Minnesota Statutes 2000, section 353.01, 
142.35  subdivision 2a, is amended to read: 
142.36     Subd. 2a.  [INCLUDED EMPLOYEES.] Public employees whose 
143.1   salary from one governmental subdivision exceeds $425 in any 
143.2   month shall participate as members of the association.  If the 
143.3   salary of an employee is less than $425 in a subsequent month, 
143.4   the employee retains membership eligibility.  The following 
143.5   persons are considered public employees: 
143.6      (1) employees whose annual salary from one governmental 
143.7   subdivision exceeds a stipulation prepared in advance, in 
143.8   writing, to be not more than $5,100 per calendar year or per 
143.9   school year for school employees for employment expected to be 
143.10  of a full year's duration or more than the prorated portion of 
143.11  $5,100 per employment period expected to be of less than a full 
143.12  year's duration.  If compensation from one governmental 
143.13  subdivision to an employee under this clause exceeds $5,100 per 
143.14  calendar year or school year after being stipulated in advance 
143.15  not to exceed that amount, the stipulation is no longer valid 
143.16  and contributions must be made on behalf of the employee under 
143.17  section 353.27, subdivision 12, from the month in which the 
143.18  employee's salary first exceeded $425; 
143.19     (2) employees whose total salary from concurrent 
143.20  nontemporary positions in one governmental subdivision exceeds 
143.21  $425 in any month; 
143.22     (3) elected officers for service to which they were elected 
143.23  by the public-at-large, or persons appointed to fill a vacancy 
143.24  in an elective office, who elect to participate by filing an 
143.25  application for membership, but not for service on a joint or 
143.26  regional board that is a governmental subdivision under 
143.27  subdivision 6, paragraph (a), unless the salary earned for that 
143.28  service exceeds $425 in any month.  The option to become a 
143.29  member, once exercised, may not be withdrawn during the 
143.30  incumbency of the person in office; 
143.31     (4) members who are appointed by the governor to be a state 
143.32  department head and elect not to be covered by the Minnesota 
143.33  state retirement system under section 352.021; 
143.34     (5) employees of elected officers; 
143.35     (6) persons who elect to remain members under section 
143.36  480.181, subdivision 2; 
144.1      (7) employees of a school district who receive separate 
144.2   salaries for driving their own buses; 
144.3      (8) employees of the Minnesota association of townships 
144.4   when the board of the association, at its option, certifies to 
144.5   the executive director that its employees are to be included for 
144.6   purposes of retirement coverage, in which case coverage of all 
144.7   employees of the association is permanent; 
144.8      (9) employees of a county historical society who are county 
144.9   employees; 
144.10     (10) employees of a county historical society located in 
144.11  the county whom the county, at its option, certifies to the 
144.12  executive director to be county employees for purposes of 
144.13  retirement coverage under this chapter, which status must be 
144.14  accorded to all similarly situated county historical society 
144.15  employees and, once established, must continue as long as a 
144.16  person is an employee of the county historical society and is 
144.17  not excluded under subdivision 2b; ~~and~~ 
144.18     (11) employees who became members before July 1, 1988, 
144.19  based on the total salary of positions held in more than one 
144.20  governmental subdivision; and 
144.21     (12) full-time employees of the Dakota county agricultural 
144.22  society. 
144.23     Sec. 2.  Minnesota Statutes 2000, section 353.01, 
144.24  subdivision 2b, is amended to read: 
144.25     Subd. 2b.  [EXCLUDED EMPLOYEES.] The following public 
144.26  employees shall not participate as members of the association 
144.27  with retirement coverage by the public employees retirement plan 
144.28  or the public employees police and fire retirement plan: 
144.29     (1) elected public officers, or persons appointed to fill a 
144.30  vacancy in an elective office, who do not elect to participate 
144.31  in the association by filing an application for membership; 
144.32     (2) election officers; 
144.33     (3) patient and inmate personnel who perform services in 
144.34  charitable, penal, or correctional institutions of a 
144.35  governmental subdivision; 
144.36     (4) employees who are hired for a temporary position under 
145.1   subdivision 12a, and employees who resign from a nontemporary 
145.2   position and accept a temporary position within 30 days in the 
145.3   same governmental subdivision, but not those employees who are 
145.4   hired for an unlimited period but are serving a probationary 
145.5   period.  If the period of employment extends beyond six 
145.6   consecutive months and the employee earns more than $425 from 
145.7   one governmental subdivision in any one calendar month, the 
145.8   department head shall report the employee for membership and 
145.9   require employee deductions be made on behalf of the employee 
145.10  under section 353.27, subdivision 4. 
145.11     Membership eligibility of an employee who resigns or is 
145.12  dismissed from a temporary position and within 30 days accepts 
145.13  another temporary position in the same governmental subdivision 
145.14  is determined on the total length of employment rather than on 
145.15  each separate position.  Membership eligibility of an employee 
145.16  who holds concurrent temporary and nontemporary positions in one 
145.17  governmental subdivision is determined by the length of 
145.18  employment and salary of each separate position; 
145.19     (5) employees whose actual salary from one governmental 
145.20  subdivision does not exceed $425 per month, or whose annual 
145.21  salary from one governmental subdivision does not exceed a 
145.22  stipulation prepared in advance, in writing, that the salary 
145.23  must not exceed $5,100 per calendar year or per school year for 
145.24  school employees for employment expected to be of a full year's 
145.25  duration or more than the prorated portion of $5,100 per 
145.26  employment period for employment expected to be of less than a 
145.27  full year's duration; 
145.28     (6) employees who are employed by reason of work emergency 
145.29  caused by fire, flood, storm, or similar disaster; 
145.30     (7) employees who by virtue of their employment in one 
145.31  governmental subdivision are required by law to be a member of 
145.32  and to contribute to any of the plans or funds administered by 
145.33  the Minnesota state retirement system, the teachers retirement 
145.34  association, the Duluth teachers retirement fund association, 
145.35  the Minneapolis teachers retirement association, the St. Paul 
145.36  teachers retirement fund association, the Minneapolis employees 
146.1   retirement fund, or any police or firefighters relief 
146.2   association governed by section 69.77 that has not consolidated 
146.3   with the public employees retirement association, or any local 
146.4   police or firefighters consolidation account but who have not 
146.5   elected the type of benefit coverage provided by the public 
146.6   employees police and fire fund under sections 353A.01 to 
146.7   353A.10, or any persons covered by section 353.665, subdivision 
146.8   4, 5, or 6, who have not elected public employees police and 
146.9   fire plan benefit coverage.  This clause must not be construed 
146.10  to prevent a person from being a member of and contributing to 
146.11  the public employees retirement association and also belonging 
146.12  to and contributing to another public pension fund for other 
146.13  service occurring during the same period of time.  A person who 
146.14  meets the definition of "public employee" in subdivision 2 by 
146.15  virtue of other service occurring during the same period of time 
146.16  becomes a member of the association unless contributions are 
146.17  made to another public retirement fund on the salary based on 
146.18  the other service or to the teachers retirement association by a 
146.19  teacher as defined in section 354.05, subdivision 2; 
146.20     (8) persons who are excluded from coverage under the 
146.21  federal Old Age, Survivors, Disability, and Health Insurance 
146.22  Program for the performance of service as specified in United 
146.23  States Code, title 42, section 410(a)(8)(A), as amended through 
146.24  January 1, 1987, if no irrevocable election of coverage has been 
146.25  made under section 3121(r) of the Internal Revenue Code of 1954, 
146.26  as amended; 
146.27     (9) full-time students who are enrolled and are regularly 
146.28  attending classes at an accredited school, college, or 
146.29  university and who are part-time employees as defined by a 
146.30  governmental subdivision; 
146.31     (10) resident physicians, medical interns, and pharmacist 
146.32  residents and pharmacist interns who are serving in a degree or 
146.33  residency program in public hospitals; 
146.34     (11) students who are serving in an internship or residency 
146.35  program sponsored by an accredited educational institution; 
146.36     (12) persons who hold a part-time adult supplementary 
147.1   technical college license who render part-time teaching service 
147.2   in a technical college; 
147.3      (13) foreign citizens working for a governmental 
147.4   subdivision with a work permit of less than three years, or an 
147.5   H-1b visa valid for less than three years of employment.  Upon 
147.6   notice to the association that the work permit or visa extends 
147.7   beyond the three-year period, the foreign citizens are eligible 
147.8   for membership from the date of the extension; 
147.9      (14) public hospital employees who elected not to 
147.10  participate as members of the association before 1972 and who 
147.11  did not elect to participate from July 1, 1988, to October 1, 
147.12  1988; 
147.13     (15) except as provided in section 353.86, volunteer 
147.14  ambulance service personnel, as defined in subdivision 35, but 
147.15  persons who serve as volunteer ambulance service personnel may 
147.16  still qualify as public employees under subdivision 2 and may be 
147.17  members of the public employees retirement association and 
147.18  participants in the public employees retirement fund or the 
147.19  public employees police and fire fund on the basis of 
147.20  compensation received from public employment service other than 
147.21  service as volunteer ambulance service personnel; 
147.22     (16) except as provided in section 353.87, volunteer 
147.23  firefighters, as defined in subdivision 36, engaging in 
147.24  activities undertaken as part of volunteer firefighter duties; 
147.25  provided that a person who is a volunteer firefighter may still 
147.26  qualify as a public employee under subdivision 2 and may be a 
147.27  member of the public employees retirement association and a 
147.28  participant in the public employees retirement fund or the 
147.29  public employees police and fire fund on the basis of 
147.30  compensation received from public employment activities other 
147.31  than those as a volunteer firefighter; 
147.32     (17) pipefitters and associated trades personnel employed 
147.33  by independent school district No. 625, St. Paul, with 
147.34  coverage under a collective bargaining agreement by the 
147.35  pipefitters local 455 pension plan ~~under a collective bargaining~~ 
147.36  ~~agreement~~ who were either first employed after May 1, 1997, or, 
148.1   if first employed before May 2, 1997, elected to be excluded 
148.2   under Laws 1997, chapter 241, article 2, section 12; ~~and~~ 
148.3      (18) electrical workers, plumbers, carpenters, and 
148.4   associated trades personnel employed by independent school 
148.5   district No. 625, St. Paul, or the city of St. Paul, with 
148.6   coverage under a collective bargaining agreement by the 
148.7   electrical workers local 110 pension plan, the united 
148.8   association plumbers local 34 pension plan, or the carpenters 
148.9   local 87 pension plan ~~under a collective bargaining agreement~~ 
148.10  who were either first employed after May 1, 2000, or, if first 
148.11  employed before May 2, 2000, elected to be excluded under Laws 
148.12  2000, chapter 461, article 7, section 5~~.~~; 
148.13     (19) bricklayers, allied craftworkers, cement masons, 
148.14  glaziers, glassworkers, painters, allied tradesworkers, and 
148.15  plasterers employed by the city of St. Paul or independent 
148.16  school district No. 625, St. Paul, with coverage under a 
148.17  collective bargaining agreement by the bricklayers and allied 
148.18  craftworkers local 1 pension plan, the cement masons local 633 
148.19  pension plan, the glaziers and glassworkers local L-1324 pension 
148.20  plan, the painters and allied trades local 61 pension plan, or 
148.21  the Twin Cities plasterers local 265 pension plan who were 
148.22  either first employed after May 1, 2001, or if first employed 
148.23  before May 2, 2001, elected to be excluded under section 6; and 
148.24     (20) plumbers employed by the metropolitan airports 
148.25  commission, with coverage under a collective bargaining 
148.26  agreement by the plumbers local 34 pension plan, who either were 
148.27  first employed after May 1, 2001, or if first employed before 
148.28  May 2, 2001, elected to be excluded under section 6. 
148.29     Sec. 3.  Minnesota Statutes 2000, section 353.01, 
148.30  subdivision 6, is amended to read: 
148.31     Subd. 6.  [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 
148.32  subdivision" means a county, city, town, school district within 
148.33  this state, or a department or unit of state government, or any 
148.34  public body whose revenues are derived from taxation, fees, 
148.35  assessments or from other sources. 
148.36     (b) Governmental subdivision also means the public 
149.1   employees retirement association, the league of Minnesota 
149.2   cities, the association of metropolitan municipalities, public 
149.3   hospitals owned or operated by, or an integral part of, a 
149.4   governmental subdivision or governmental subdivisions, the 
149.5   association of Minnesota counties, the metropolitan intercounty 
149.6   association, the Minnesota municipal utilities association, the 
149.7   metropolitan airports commission, the Minneapolis employees 
149.8   retirement fund for employment initially commenced after June 
149.9   30, 1979, the range association of municipalities and schools, 
149.10  soil and water conservation districts, ~~and~~ economic development 
149.11  authorities created or operating under sections 469.090 to 
149.12  469.108, the Spring Lake Park fire department, incorporated, and 
149.13  the Dakota county agricultural society. 
149.14     (c) Governmental subdivision does not mean any municipal 
149.15  housing and redevelopment authority organized under the 
149.16  provisions of sections 469.001 to 469.047; or any port authority 
149.17  organized under sections 469.048 to 469.089; or any hospital 
149.18  district organized or reorganized prior to July 1, 1975, under 
149.19  sections 447.31 to 447.37 or the successor of the district, nor 
149.20  the Minneapolis community development agency.  
149.21     Sec. 4.  [383D.48] [METROPOLITAN INTER-COUNTY ASSOCIATION.] 
149.22     Notwithstanding any other law to the contrary, Dakota 
149.23  county may provide financial and accounting services, including 
149.24  payroll management and records, to the Metropolitan Inter-county 
149.25  Association.  Notwithstanding this section, Metropolitan 
149.26  Inter-county Association employees are not county employees for 
149.27  any purpose. 
149.28     Sec. 5.  [383D.49] [AGRICULTURAL SOCIETY.] 
149.29     Notwithstanding any other law to the contrary, Dakota 
149.30  county may provide financial and accounting services, including 
149.31  payroll management and records, to the Dakota county 
149.32  agricultural society and may determine that employees of the 
149.33  society are county employees for the purposes of section 471.61. 
149.34  Dakota county agricultural society employees are not county 
149.35  employees for any other purpose. 
149.36     Sec. 6.  [PUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN 
150.1   TRADES PERSONNEL.] 
150.2      Subdivision 1.  [EXCLUSION ELECTION.] (a) A bricklayer, 
150.3   allied craftworker, cement mason, glazier, glassworker, painter, 
150.4   allied tradesworker, or plasterer who is employed by the city of 
150.5   St. Paul or independent school district No. 625, St. Paul, on 
150.6   the effective date of this section and who has pension coverage 
150.7   under a collective bargaining agreement by the bricklayers and 
150.8   allied craftworkers local 1 pension plan, the cement masons 
150.9   local 633 pension plan, the glaziers and glassworkers local 
150.10  L-1324 pension plan, the painters and allied trades local 61 
150.11  pension plan, or the Twin Cities plasterers local 265 pension 
150.12  plan may elect to be excluded from pension coverage by the 
150.13  public employees retirement association. 
150.14     (b) A plumber who is employed by the metropolitan airports 
150.15  commission on the effective date of this section and who has 
150.16  pension coverage under a collective bargaining agreement by the 
150.17  plumbers local 34 pension plan may elect to be excluded from 
150.18  pension coverage by the public employees retirement association. 
150.19     (c) The exclusion election under this section must be made 
150.20  in writing on a form prescribed by the executive director of the 
150.21  public employees retirement association and must be filed with 
150.22  the executive director.  The exclusion election is irrevocable.  
150.23  Authority to make the coverage exclusion expires on January 1, 
150.24  2002. 
150.25     Subd. 2.  [ELIGIBILITY FOR MEMBER CONTRIBUTION REFUND.] A 
150.26  person who has less than three years of allowable service in the 
150.27  public employees retirement association and who elects the 
150.28  pension coverage exclusion under subdivision 1 is entitled to 
150.29  immediately apply for a refund under Minnesota Statutes, section 
150.30  353.34, subdivisions 1 and 2, following the effective date of 
150.31  the exclusion election. 
150.32     Subd. 3.  [DEFERRED ANNUITY ELIGIBILITY.] In lieu of the 
150.33  refund under subdivision 2, a person who elects the pension 
150.34  coverage exclusion under subdivision 1 is entitled to a deferred 
150.35  retirement annuity under Minnesota Statutes, sections 353.34, 
150.36  subdivision 3; and 353.71, subdivision 2, based on any length of 
151.1   allowable service credit under Minnesota Statutes, section 
151.2   353.01, subdivision 16, to the credit of the person as of the 
151.3   date of the coverage exclusion election. 
151.4      Sec. 7.  [DAKOTA COUNTY AGRICULTURAL SOCIETY EMPLOYEE 
151.5   PENSION CERTIFICATION.] 
151.6      Notwithstanding Minnesota Statutes, section 383D.49, the 
151.7   Dakota county board of commissioners may certify to the 
151.8   executive director of the public employees retirement 
151.9   association that full-time employees of the Dakota county 
151.10  agricultural society are county employees for purposes of 
151.11  retirement coverage under Minnesota Statutes, chapter 353, which 
151.12  status must be accorded to all similarly situated Dakota county 
151.13  agricultural society employees. 
151.14     Sec. 8.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
151.15     (a) Sections 1, 3, 4, and 5 are effective the day after the 
151.16  governing body of Dakota county and its chief clerical officer 
151.17  timely complete their compliance with Minnesota Statutes, 
151.18  section 645.021, subdivisions 2 and 3. 
151.19     (b) Section 7 is effective the day after the governing 
151.20  board of Dakota county and its chief clerical officer timely 
151.21  complete their compliance with Minnesota Statutes, section 
151.22  645.021, subdivisions 2 and 3, and certification to the 
151.23  executive director of the public employees retirement 
151.24  association. 
151.25     (c) Sections 2 and 6 are effective for bricklayers, allied 
151.26  craftworkers, cement masons, glaziers, glassworkers, painters, 
151.27  allied tradesworkers, and plasterers employed by the city of St. 
151.28  Paul or independent school district No. 625, St. Paul, as 
151.29  applicable, on the day following approval by majority vote of 
151.30  the St. Paul city council or governing board of independent 
151.31  school district No. 625, St. Paul, as applicable, and compliance 
151.32  with Minnesota Statutes, section 645.021. 
151.33     (d) Sections 2 and 6 are effective for plumbers employed by 
151.34  the metropolitan airports commission on the day following 
151.35  approval by majority vote of the metropolitan airports 
151.36  commission and compliance with Minnesota Statutes, section 
152.1   645.021. 
152.2                              ARTICLE 11 
152.3      REMEDIAL MEASURES FOR THE PERA-GENERAL FUNDING DEFICIENCY
152.4      Section 1.  Minnesota Statutes 2000, section 353.01, 
152.5   subdivision 1, is amended to read: 
152.6      Subdivision 1.  [TERMS.] Unless the language or context 
152.7   clearly indicates that a different meaning is intended, each of 
152.8   the following terms, for the purposes of this chapter, ~~shall~~ 
152.9   ~~be~~ has the meaning given ~~the meanings subjoined to them~~ it. 
152.10     Sec. 2.  Minnesota Statutes 2000, section 353.01, 
152.11  subdivision 2, is amended to read: 
152.12     Subd. 2.  [PUBLIC EMPLOYEE.] "Public employee" means ~~an~~ a 
152.13  governmental employee performing personal services for a 
152.14  governmental subdivision ~~under~~ defined in subdivision 6, whose 
152.15  salary is paid, in whole or in part, from revenue derived from 
152.16  taxation, fees, assessments, or from other sources.  The 
152.17  term ~~also~~ includes ~~special~~ the classes of persons described or 
152.18  listed in subdivision 2a~~, but~~.  The term also includes persons 
152.19  who elect association membership under subdivision 2d, paragraph 
152.20  (a), and persons for whom the applicable governmental 
152.21  subdivision had elected association membership under subdivision 
152.22  2d, paragraph (b).  The term excludes ~~special~~ the classes of 
152.23  persons listed in subdivision 2b for purposes of membership in 
152.24  the association.  ~~Public employee does not include independent~~ 
152.25  ~~contractors and their employees.  A reemployed annuitant under~~ 
152.26  ~~section 353.37 must not be considered to be a public employee~~ 
152.27  ~~for purposes of that reemployment.~~ 
152.28     Sec. 3.  Minnesota Statutes 2000, section 353.01, 
152.29  subdivision 2a, is amended to read: 
152.30     Subd. 2a.  [INCLUDED EMPLOYEES.] (a) Public employees ~~whose~~ 
152.31  ~~salary from one governmental subdivision exceeds $425 in any~~ 
152.32  ~~month shall participate as members of the association.  If the~~ 
152.33  ~~salary of an employee is less than $425 in a subsequent month,~~ 
152.34  ~~the employee retains membership eligibility.  The following~~ 
152.35  ~~persons are considered public employees:~~ 
152.36     ~~(1) employees whose annual salary from one governmental~~ 
153.1   ~~subdivision exceeds a stipulation prepared in advance, in~~ 
153.2   ~~writing, to be not more than $5,100 per calendar year or per~~ 
153.3   ~~school year for school employees for employment expected to be~~ 
153.4   ~~of a full year's duration or more than the prorated portion of~~ 
153.5   ~~$5,100 per employment period expected to be of less than a full~~ 
153.6   ~~year's duration.  If compensation from one governmental~~ 
153.7   ~~subdivision to an employee under this clause exceeds $5,100 per~~ 
153.8   ~~calendar year or school year after being stipulated in advance~~ 
153.9   ~~not to exceed that amount, the stipulation is no longer valid~~ 
153.10  ~~and contributions must be made on behalf of the employee under~~ 
153.11  ~~section 353.27, subdivision 12, from the month in which the~~ 
153.12  ~~employee's salary first exceeded $425;~~ 
153.13     ~~(2) employees whose total salary from concurrent~~ 
153.14  ~~nontemporary positions in one governmental subdivision exceeds~~ 
153.15  ~~$425 in any month;~~ 
153.16     ~~(3) elected officers for service to which they were elected~~ 
153.17  ~~by the public-at-large, or persons appointed to fill a vacancy~~ 
153.18  ~~in an elective office, who elect to participate by filing an~~ 
153.19  ~~application for membership, but not for service on a joint or~~ 
153.20  ~~regional board that is a governmental subdivision under~~ 
153.21  ~~subdivision 6, paragraph (a), unless the salary earned for that~~ 
153.22  ~~service exceeds $425 in any month.  The option to become a~~ 
153.23  ~~member, once exercised, may not be withdrawn during the~~ 
153.24  ~~incumbency of the person in office;~~ 
153.25     ~~(4) members who are appointed by the governor to be a state~~ 
153.26  ~~department head and elect not to be covered by the Minnesota~~ 
153.27  ~~state retirement system under section 352.021;~~ 
153.28     ~~(5) employees of elected officers;~~ 
153.29     ~~(6) persons who elect to remain members under section~~ 
153.30  ~~480.181, subdivision 2;~~ 
153.31     ~~(7) employees of a school district who receive separate~~ 
153.32  ~~salaries for driving their own buses;~~ 
153.33     ~~(8) employees of the Minnesota association of townships~~ 
153.34  ~~when the board of the association, at its option, certifies to~~ 
153.35  ~~the executive director that its employees are to be included for~~ 
153.36  ~~purposes of retirement coverage, in which case coverage of all~~ 
154.1   ~~employees of the association is permanent;~~ 
154.2      ~~(9) employees of a county historical society who are county~~ 
154.3   ~~employees;~~ 
154.4      ~~(10) employees of a county historical society located in~~ 
154.5   ~~the county whom the county, at its option, certifies to the~~ 
154.6   ~~executive director to be county employees for purposes of~~ 
154.7   ~~retirement coverage under this chapter, which status must be~~ 
154.8   ~~accorded to all similarly situated county historical society~~ 
154.9   ~~employees and, once established, must continue as long as a~~ 
154.10  ~~person is an employee of the county historical society and is~~ 
154.11  ~~not excluded under subdivision 2b; and~~ 
154.12     ~~(11) employees who became members before July 1, 1988,~~ 
154.13  ~~based on the total salary of positions held in more than one~~ 
154.14  ~~governmental subdivision.~~ shall participate as members of the 
154.15  association with retirement coverage by the public employees 
154.16  retirement plan or the public employees police and fire 
154.17  retirement plan under this chapter, or the local government 
154.18  correctional employees retirement plan under chapter 353E, 
154.19  whichever applies, as a condition of their employment on the 
154.20  first day of employment unless they: 
154.21     (1) are specifically excluded under subdivision 2b; 
154.22     (2) do not exercise their option to elect retirement 
154.23  coverage in the association as provided in subdivision 2d, 
154.24  paragraph (a); or 
154.25     (3) are employees of the governmental subdivisions listed 
154.26  in subdivision 2d, paragraph (b), where the governmental 
154.27  subdivision has not elected to participate as a governmental 
154.28  subdivision covered by the association. 
154.29     (b) A public employee who was a member of the association 
154.30  on June 30, 2002, based on employment that qualified for 
154.31  membership coverage by the public employees retirement plan or 
154.32  the public employees police and fire plan under this chapter, or 
154.33  the local government correctional employees retirement plan 
154.34  under chapter 353E as of June 30, 2002, retains that membership 
154.35  until the employee terminates public employment under 
154.36  subdivision 11a or terminates membership under subdivision 11b. 
155.1      Sec. 4.  Minnesota Statutes 2000, section 353.01, 
155.2   subdivision 2b, is amended to read: 
155.3      Subd. 2b.  [EXCLUDED EMPLOYEES.] The following public 
155.4   employees ~~shall~~ are not eligible to participate as members of 
155.5   the association with retirement coverage by the public employees 
155.6   retirement plan, the local government correctional employees 
155.7   retirement plan under chapter 353E, or the public employees 
155.8   police and fire retirement plan: 
155.9      (1) ~~elected~~ public officers, other than county sheriffs, 
155.10  who are elected to a governing body, or persons who are 
155.11  appointed to fill a vacancy in an elective office~~, who do not~~ 
155.12  ~~elect to participate in the association by filing an application~~ 
155.13  ~~for membership~~ of a governing body, whose term of office first 
155.14  commences on or after July 1, 2002, for the service to be 
155.15  rendered in that elective position.  Elected governing body 
155.16  officials who were active members of the association's 
155.17  coordinated or basic retirement plans as of June 30, 2002, 
155.18  continue participation throughout incumbency in office until 
155.19  termination of public service occurs as defined in subdivision 
155.20  11a; 
155.21     (2) election officers or election judges; 
155.22     (3) patient and inmate personnel who perform services ~~in~~ 
155.23  ~~charitable, penal, or correctional institutions of~~ for a 
155.24  governmental subdivision; 
155.25     (4) employees who are hired for a temporary position under 
155.26  subdivision 12a, and employees who resign from a nontemporary 
155.27  position and accept a temporary position within 30 days in the 
155.28  same governmental subdivision~~, but not those~~.  An employer must 
155.29  not apply the definition of temporary position so as to exclude 
155.30  employees who are hired ~~for an unlimited period~~ to fill 
155.31  positions that are permanent or that are for an unspecified 
155.32  period but who are serving a probationary period at the start of 
155.33  the employment.  If the period of employment extends beyond six 
155.34  consecutive months ~~and the employee earns more than $425 from~~ 
155.35  ~~one governmental subdivision in any one calendar month~~, the 
155.36  department head shall report the employee for membership and 
156.1   require employee deductions be made on behalf of the employee 
156.2   under section 353.27, subdivision 4. 
156.3      The membership eligibility of an employee who resigns or is 
156.4   dismissed from a temporary position and within 30 days accepts 
156.5   another temporary position in the same governmental subdivision 
156.6   is determined on the total length of employment rather than on 
156.7   each separate position.  Membership eligibility of an employee 
156.8   who holds concurrent temporary and nontemporary positions in one 
156.9   governmental subdivision is determined by the length of 
156.10  employment and salary of each separate position; 
156.11     (5) ~~employees whose actual salary from one governmental~~ 
156.12  ~~subdivision does not exceed $425 per month, or whose annual~~ 
156.13  ~~salary from one governmental subdivision does not exceed a~~ 
156.14  ~~stipulation prepared in advance, in writing, that the salary~~ 
156.15  ~~must not exceed $5,100 per calendar year or per school year for~~ 
156.16  ~~school employees for employment expected to be of a full year's~~ 
156.17  ~~duration or more than the prorated portion of $5,100 per~~ 
156.18  ~~employment period for employment expected to be of less than a~~ 
156.19  ~~full year's duration;~~ 
156.20     ~~(6)~~ employees who are employed by reason of work emergency 
156.21  caused by fire, flood, storm, or similar disaster; 
156.22     ~~(7)~~ (6) employees who by virtue of their employment in one 
156.23  governmental subdivision are required by law to be a member of 
156.24  and to contribute to any of the plans or funds administered by 
156.25  the Minnesota state retirement system, the teachers retirement 
156.26  association, the Duluth teachers retirement fund association, 
156.27  the Minneapolis teachers retirement association, the St. Paul 
156.28  teachers retirement fund association, the Minneapolis employees 
156.29  retirement fund, or any police or firefighters relief 
156.30  association governed by section 69.77 that has not consolidated 
156.31  with the public employees retirement association, or any local 
156.32  police or firefighters consolidation account but who have not 
156.33  elected the type of benefit coverage provided by the public 
156.34  employees police and fire fund under sections 353A.01 to 
156.35  353A.10, or any persons covered by section 353.665, subdivision 
156.36  4, 5, or 6, who have not elected public employees police and 
157.1   fire plan benefit coverage.  This clause must not be construed 
157.2   to prevent a person from being a member of and contributing to 
157.3   the public employees retirement association and also belonging 
157.4   to and contributing to another public pension fund for other 
157.5   service occurring during the same period of time.  A person who 
157.6   meets the definition of "public employee" in subdivision 2 by 
157.7   virtue of other service occurring during the same period of time 
157.8   becomes a member of the association unless contributions are 
157.9   made to another public retirement fund on the salary based on 
157.10  the other service or to the teachers retirement association by a 
157.11  teacher as defined in section 354.05, subdivision 2; 
157.12     ~~(8)~~ (7) persons who are members of a religious order and 
157.13  are excluded from coverage under the federal Old Age, Survivors, 
157.14  Disability, and Health Insurance Program for the performance of 
157.15  service as specified in United States Code, title 42, section 
157.16  410(a)(8)(A), as amended through January 1, 1987, if no 
157.17  irrevocable election of coverage has been made under section 
157.18  3121(r) of the Internal Revenue Code of 1954, as amended; 
157.19     ~~(9) full-time students who~~ (8) employees who at the time 
157.20  they are hired by a governmental subdivision are enrolled ~~and~~ on 
157.21  a full-time basis to attend or are ~~regularly~~ attending classes 
157.22  at an accredited school, college, or university ~~and who are~~ 
157.23  ~~part-time employees as defined by a governmental subdivision~~ in 
157.24  an undergraduate, graduate, or professional-technical program, 
157.25  or a public or charter high school, if the employment is 
157.26  predicated on the student status of the individual; 
157.27     ~~(10)~~ (9) resident physicians, medical interns, and 
157.28  pharmacist residents and pharmacist interns who are serving in a 
157.29  degree or residency program in public hospitals; 
157.30     ~~(11)~~ (10) students who are serving in an internship or 
157.31  residency program sponsored by an accredited educational 
157.32  institution; 
157.33     ~~(12)~~ (11) persons who hold a part-time adult supplementary 
157.34  technical college license who render part-time teaching service 
157.35  in a technical college; 
157.36     ~~(13)~~ (12) foreign citizens working for a governmental 
158.1   subdivision with a work permit of less than three years, or an 
158.2   H-1b visa valid for less than three years of employment.  Upon 
158.3   notice to the association that the work permit or visa extends 
158.4   beyond the three-year period, the foreign citizens are eligible 
158.5   for membership from the date of the extension; 
158.6      ~~(14)~~ (13) public hospital employees who elected not to 
158.7   participate as members of the association before 1972 and who 
158.8   did not elect to participate from July 1, 1988, to October 1, 
158.9   1988; 
158.10     ~~(15)~~ (14) except as provided in section 353.86, volunteer 
158.11  ambulance service personnel, as defined in subdivision 35, but 
158.12  persons who serve as volunteer ambulance service personnel may 
158.13  still qualify as public employees under subdivision 2 and may be 
158.14  members of the public employees retirement association and 
158.15  participants in the public employees retirement fund or the 
158.16  public employees police and fire fund, whichever applies, on the 
158.17  basis of compensation received from public employment service 
158.18  other than service as volunteer ambulance service personnel; 
158.19     ~~(16)~~ (15) except as provided in section 353.87, volunteer 
158.20  firefighters, as defined in subdivision 36, engaging in 
158.21  activities undertaken as part of volunteer firefighter duties; 
158.22  provided that a person who is a volunteer firefighter may still 
158.23  qualify as a public employee under subdivision 2 and may be a 
158.24  member of the public employees retirement association and a 
158.25  participant in the public employees retirement fund or the 
158.26  public employees police and fire fund, whichever applies, on the 
158.27  basis of compensation received from public employment activities 
158.28  other than those as a volunteer firefighter; 
158.29     ~~(17)~~ (16) pipefitters and associated trades personnel 
158.30  employed by independent school district No. 625, St. Paul, with 
158.31  coverage by the pipefitters local 455 pension plan under a 
158.32  collective bargaining agreement who were either first employed 
158.33  after May 1, 1997, or, if first employed before May 2, 1997, 
158.34  elected to be excluded under Laws 1997, chapter 241, article 2, 
158.35  section 12; ~~and~~ 
158.36     ~~(18)~~ (17) electrical workers, plumbers, carpenters, and 
159.1   associated trades personnel employed by independent school 
159.2   district No. 625, St. Paul, or the city of St. Paul, ~~with~~ who 
159.3   have retirement coverage by the electrical workers local 110 
159.4   pension plan, the united association plumbers local 34 pension 
159.5   plan, or the carpenters local 87 pension plan under a collective 
159.6   bargaining agreement who were either first employed after May 1, 
159.7   2000, or, if first employed before May 2, 2000, elected to be 
159.8   excluded under Laws 2000, chapter 461, article 7, section 5~~.~~; 
159.9      (18) employees who are hired after June 30, 2002, to fill 
159.10  seasonal positions under subdivision 12b which are limited in 
159.11  duration by the employer to 185 consecutive calendar days or 
159.12  less in each business year of the governmental subdivision; 
159.13     (19) persons who are provided supported employment or 
159.14  work-study positions by a governmental subdivision and who 
159.15  participate in an employment or industries program maintained 
159.16  for the benefit of these persons where the governmental 
159.17  subdivision limits the position's duration to three years or 
159.18  less, including persons participating in a federal or state 
159.19  subsidized on-the-job training, work experience, senior citizen, 
159.20  youth, or unemployment relief program where the training or work 
159.21  experience is not provided as a part of, or for, future 
159.22  permanent public employment; 
159.23     (20) independent contractors and the employees of 
159.24  independent contractors; and 
159.25     (21) reemployed annuitants of the association during the 
159.26  course of that reemployment. 
159.27     Sec. 5.  Minnesota Statutes 2000, section 353.01, is 
159.28  amended by adding a subdivision to read: 
159.29     Subd. 2d.  [OPTIONAL MEMBERSHIP.] (a) Membership in the 
159.30  association is optional by action of the individual employee for 
159.31  the following public employees who meet the conditions set forth 
159.32  in subdivision 2a: 
159.33     (1) members of the coordinated plan who are also employees 
159.34  of labor organizations as defined in section 353.017, 
159.35  subdivision 1, for their employment by the labor organization 
159.36  only if they elect to have membership under section 353.017, 
160.1   subdivision 2; 
160.2      (2) persons who are elected or persons who are appointed to 
160.3   elected positions other than local governing body elected 
160.4   positions who elect to participate by filing a written election 
160.5   for membership; 
160.6      (3) members of the association who are appointed by the 
160.7   governor to be a state department head and who elect not to be 
160.8   covered by the general state employees retirement plan of the 
160.9   Minnesota state retirement system under section 352.021; and 
160.10     (4) city managers as defined in section 353.028, 
160.11  subdivision 1, who do not elect to be excluded from membership 
160.12  in the association under section 353.028, subdivision 2. 
160.13     (b) Membership in the association is optional by action of 
160.14  the governmental subdivision for the employees of the following 
160.15  governmental subdivisions under the conditions specified: 
160.16     (1) the Minnesota association of townships if the board of 
160.17  the association, at its option, certifies to the executive 
160.18  director that its employees are to be included for purposes of 
160.19  retirement coverage, in which case the status of the association 
160.20  as a participating employer is permanent; and 
160.21     (2) a county historical society if the county in which the 
160.22  historical society is located, at its option, certifies to the 
160.23  executive director that the employees of the historical society 
160.24  are to be county employees for purposes of retirement coverage 
160.25  under this chapter.  The status as a county employee must be 
160.26  accorded to all similarly situated county historical society 
160.27  employees and, once established, must continue as long as a 
160.28  person is an employee of the county historical society. 
160.29     (c) For employees who are covered by paragraph (a), clause 
160.30  (1), (2), or (3), or covered by paragraph (b), if the necessary 
160.31  membership election is not made, the employee is excluded from 
160.32  retirement coverage under this chapter.  For employees who are 
160.33  covered by paragraph (a), clause (4), if the necessary election 
160.34  is not made, the employee must become a member and have 
160.35  retirement coverage under this chapter.  The option to become a 
160.36  member, once exercised under this subdivision, may not be 
161.1   withdrawn until termination of public service as defined under 
161.2   subdivision 11a. 
161.3      Sec. 6.  Minnesota Statutes 2000, section 353.01, 
161.4   subdivision 7, is amended to read: 
161.5      Subd. 7.  [MEMBER.] "Member" means a person who accepts 
161.6   employment as a "public employee" under subdivision 2, who is an 
161.7   employee who works in one or more positions that require or 
161.8   allow membership in the association under subdivision 2a or 
161.9   2d, for whom contributions have been withheld from salary and 
161.10  who is not covered by the plan established in chapter 353D or 
161.11  excluded under subdivision 2b.  A person who is a member remains 
161.12  a member while performing services as a public employee and 
161.13  while on an authorized leave of absence or an authorized 
161.14  temporary layoff. 
161.15     Sec. 7.  Minnesota Statutes 2000, section 353.01, 
161.16  subdivision 11b, is amended to read: 
161.17     Subd. 11b.  [TERMINATION OF MEMBERSHIP.] (a) "Termination 
161.18  of membership" means the conclusion of membership in the 
161.19  association and occurs: 
161.20     (1) upon termination of public service under subdivision 
161.21  11a; 
161.22     (2) ~~when a member who is a part-time employee is excluded~~ 
161.23  ~~from membership as a full-time student under subdivision 2b,~~ 
161.24  ~~clause (9);~~ 
161.25     ~~(3)~~ when a member does not return to work within 30 days of 
161.26  the expiration of an authorized temporary layoff under 
161.27  subdivision 12 or an authorized leave of absence under 
161.28  subdivision 31~~.  If the employee subsequently returns to a~~ 
161.29  ~~position in the same governmental subdivision, the employee~~ 
161.30  ~~shall not again be required to earn a salary in excess of $425~~ 
161.31  ~~per month, unless the employee has taken a refund of accumulated~~ 
161.32  ~~employee deductions plus interest under section 353.34,~~ 
161.33  ~~subdivision 1~~ as evidenced by the appropriate record filed by 
161.34  the governmental subdivision; or 
161.35     ~~(4)~~ (3) when a person files a written election to 
161.36  discontinue employee deductions under section 353.27, 
162.1   subdivision 7, paragraph (a), clause (1). 
162.2      (b) The termination of membership must be reported to the 
162.3   association by the governmental subdivision. 
162.4      Sec. 8.  Minnesota Statutes 2000, section 353.01, 
162.5   subdivision 12a, is amended to read: 
162.6      Subd. 12a.  [TEMPORARY POSITION.] (1) "Temporary position" 
162.7   means an employment position predetermined by the employer at 
162.8   the time of hiring to be a period of six months or less ~~or~~.  
162.9   Temporary position also means an employment position occupied by 
162.10  a person hired by the employer as a temporary replacement who is 
162.11  employed for a predetermined period of six months or less. 
162.12     (2) "Temporary position" does not mean an employment 
162.13  position for ~~an unlimited period~~ a specified term in which a 
162.14  person serves a probationary period ~~or works an irregular~~ 
162.15  ~~schedule~~ as a requirement for subsequent employment on a 
162.16  permanent or unlimited basis. 
162.17     Sec. 9.  Minnesota Statutes 2000, section 353.01, is 
162.18  amended by adding a subdivision to read: 
162.19     Subd. 12b.  [SEASONAL POSITION.] "Seasonal position" means 
162.20  a position where the nature of the work or its duration are 
162.21  related to a specific season or seasons of the year, regardless 
162.22  of whether or not the employing agency anticipates that the same 
162.23  employee will return to the position each season in which it 
162.24  becomes available.  The entire period of employment in a 
162.25  business year must be used to determine whether or not a 
162.26  position may be excluded as seasonal when there is less than a 
162.27  30-day break between one seasonal position and a subsequent 
162.28  seasonal position for employment with the same governmental 
162.29  employer.  Seasonal positions include, but are not limited to, 
162.30  coaching athletic activities or employment to plow snow or to 
162.31  maintain roads or parks, or to operate skating rinks, ski 
162.32  lodges, golf courses, or swimming pools. 
162.33     Sec. 10.  Minnesota Statutes 2000, section 353.01, 
162.34  subdivision 16, is amended to read: 
162.35     Subd. 16.  [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 
162.36  "Allowable service" means: 
163.1      (1) service during years of actual membership in the course 
163.2   of which employee contributions were made, periods covered by 
163.3   payments in lieu of salary deductions under section 353.35~~, and~~; 
163.4      (2) service in years during which the public employee was 
163.5   not a member but for which the member later elected, while a 
163.6   member, to obtain credit by making payments to the fund as 
163.7   permitted by any law then in effect~~.~~; 
163.8      ~~(b) "Allowable service" also means~~ (3) a period of 
163.9   authorized leave of absence with pay from which deductions for 
163.10  employee contributions are made, deposited, and credited to the 
163.11  fund~~.~~; 
163.12     ~~(c) "Allowable service" also means~~ (4) a period of 
163.13  authorized personal, parental, or medical leave of absence 
163.14  without pay, including a leave of absence covered under the 
163.15  federal Family Medical Leave Act, that does not exceed one year, 
163.16  and during or for which a member obtained full or fractional 
163.17  service credit for each month in the leave period by payments to 
163.18  the fund made in place of salary deductions~~, provided that~~.  The 
163.19  payments ~~are~~ must be made in an amount or amounts based on the 
163.20  member's average salary on which deductions were paid for the 
163.21  last six months of public service, or for that portion of the 
163.22  last six months while the member was in public service, to apply 
163.23  to the period in either case that immediately ~~preceding~~ precedes 
163.24  the commencement of the leave of absence.  If the employee 
163.25  elects to pay the employee contributions for the period of 
163.26  any authorized personal, parental, or medical leave of absence 
163.27  without pay, or for any portion of the leave, the employee shall 
163.28  also, as a condition to the exercise of the election, pay to the 
163.29  fund an amount equivalent to ~~both~~ the required employer and the 
163.30  additional employer contributions, if any, for the employee.  
163.31  The payment must be made within one year from the expiration of 
163.32  the leave of absence or within 20 days after termination of 
163.33  public service under subdivision 11a.  The employer, if by 
163.34  appropriate action of its governing body, which is made a part 
163.35  of its official records, and which is adopted before the date of 
163.36  the first payment of the employee contribution, may certify to 
164.1   the association in writing its commitment to pay the employer 
164.2   and additional employer contributions from the proceeds of a tax 
164.3   levy made under section 353.28.  Payments under this paragraph 
164.4   must include interest at an annual rate of 8.5 percent 
164.5   compounded annually from the date of the termination of the 
164.6   leave of absence to the date payment is made.  An employee shall 
164.7   return to public service and ~~receive~~ render a minimum of three 
164.8   months of allowable service in order to be eligible to pay 
164.9   employee and employer contributions for a subsequent authorized 
164.10  leave of absence without pay.  Upon payment, the employee must 
164.11  be granted allowable service credit for full calendar months or 
164.12  fractions of a month during the leave period as described in 
164.13  paragraph (d), clauses (1) and (2), based on the salary or the 
164.14  compensated hours used in computing the payment amount; 
164.15     ~~(d) "Allowable service" also means~~ (5) a periodic, 
164.16  repetitive leave that is offered to all employees of a 
164.17  governmental subdivision.  The leave program may not exceed 208 
164.18  hours per annual normal work cycle as certified to the 
164.19  association by the employer.  A participating member obtains 
164.20  service credit by making employee contributions in an amount or 
164.21  amounts based on the member's average salary that would have 
164.22  been paid if the leave had not been taken.  The employer shall 
164.23  pay the employer and additional employer contributions on behalf 
164.24  of the participating member.  The employee and the employer are 
164.25  responsible to pay interest on their respective shares at the 
164.26  rate of 8.5 percent a year, compounded annually, from the end of 
164.27  the normal cycle until full payment is made.  An employer shall 
164.28  also make the employer and additional employer contributions, 
164.29  plus 8.5 percent interest, compounded annually, on behalf of an 
164.30  employee who makes employee contributions but terminates public 
164.31  service.  The employee contributions must be made within one 
164.32  year after the end of the annual normal working cycle or within 
164.33  20 days after termination of public service, whichever is 
164.34  sooner.  The association shall prescribe the manner and forms to 
164.35  be used by a governmental subdivision in administering a 
164.36  periodic, repetitive leave.  Upon payment, the member must be 
165.1   granted allowable service credit for full calendar months or 
165.2   fractions of a month during the leave period as described in 
165.3   paragraph (d), clauses (1) and (2), based on the salary or the 
165.4   compensated hours used in computing the payment amount; 
165.5      ~~(e) "Allowable service" also means a period during which a~~ 
165.6   ~~member is on an authorized sick leave of absence, without pay,~~ 
165.7   ~~limited to one year.  An employee who has received one year of~~ 
165.8   ~~allowable service shall return to public service and receive a~~ 
165.9   ~~minimum of three months of allowable service to receive~~ 
165.10  ~~allowable service for a subsequent authorized sick leave of~~ 
165.11  ~~absence.~~ 
165.12     ~~(f) "Allowable service" also means~~ (6) an authorized 
165.13  temporary layoff under subdivision 12~~,~~.  For temporary layoffs 
165.14  that begin before January 1, 2002, allowable service credit is 
165.15  limited to three months allowable service per authorized 
165.16  temporary layoff in one calendar year.  ~~An employee who has~~ 
165.17  ~~received the maximum service allowed for an authorized temporary~~ 
165.18  ~~layoff shall return to public service and receive a minimum of~~ 
165.19  ~~three months of allowable service to receive allowable service~~ 
165.20  ~~for a subsequent authorized temporary layoff.~~  For temporary 
165.21  layoffs that begin on or after January 1, 2002, allowable 
165.22  service credit for the calendar month in which the member does 
165.23  not receive salary due to the layoff must be determined using 
165.24  the following formula: 
165.25     (i) members who earned one month of allowable service 
165.26  credit for each of the nine calendar months of compensated 
165.27  employment with the governmental subdivision authorizing the 
165.28  layoff that immediately preceded the layoff shall receive one 
165.29  month of allowable service credit, limited to three months of 
165.30  allowable service credit per year, for each month of the 
165.31  temporary layoff; or 
165.32     (ii) members who earned less than nine months of allowable 
165.33  service credit in the year of compensated employment with the 
165.34  governmental subdivision authorizing the layoff that immediately 
165.35  preceded the layoff shall receive allowable service credit on a 
165.36  fractional basis for each month of the authorized layoff, 
166.1   limited to three months of allowable service credit, determined 
166.2   by dividing the total number of months of service credit earned 
166.3   for the compensated employment by nine and multiplying the 
166.4   resulting number by the total number of months in the layoff 
166.5   period that are not compensated; or 
166.6      ~~(g) Notwithstanding any law to the contrary, "allowable~~ 
166.7   ~~service" also means a parental leave.  The association shall~~ 
166.8   ~~grant a maximum of two months service credit for a parental~~ 
166.9   ~~leave, within six months after the birth or adoption, upon~~ 
166.10  ~~documentation from the member's governmental subdivision or~~ 
166.11  ~~presentation of a birth certificate or other evidence of birth~~ 
166.12  ~~or adoption to the association.~~ 
166.13     ~~(h) "Allowable service" also means~~ (7) a period during 
166.14  which a member is on an authorized leave of absence to enter 
166.15  military service in the armed forces of the United States, 
166.16  provided that the member returns to public service upon 
166.17  discharge from military service under section 192.262 and pays 
166.18  into the fund employee contributions based upon the employee's 
166.19  salary at the date of return from military service.  Payment 
166.20  must be made within three times the length of the military leave 
166.21  period, or five years of the date of discharge from the military 
166.22  service, whichever is less.  The amount of these contributions 
166.23  must be in accord with the contribution rates and salary 
166.24  limitations, if any, in effect during the leave, plus interest 
166.25  at an annual rate of 8.5 percent compounded annually from the 
166.26  date of return to public service to the date payment is made.  
166.27  The matching employer contribution and additional employer 
166.28  contribution under section 353.27, subdivisions 3 and 3a, must 
166.29  be paid by the governmental subdivision employing the member 
166.30  upon return to public service if the member makes the employee 
166.31  contributions.  The governmental subdivision involved may 
166.32  appropriate money for those payments.  A member may not receive 
166.33  credit for a voluntary extension of military service at the 
166.34  instance of the member beyond the initial period of enlistment, 
166.35  induction, or call to active duty.  Upon payment, the employee 
166.36  must be granted allowable service credit for full calendar 
167.1   months or fractions of a month during the leave period as 
167.2   described in paragraph (d), clauses (1) and (2), based on the 
167.3   salary or compensated hours used in computing the payment amount.
167.4      ~~(i)~~ (b) For calculating benefits under sections 353.30, 
167.5   353.31, 353.32, and 353.33 for state officers and employees 
167.6   displaced by the Community Corrections Act, chapter 401, and 
167.7   transferred into county service under section 401.04, "allowable 
167.8   service" means combined years of allowable service as defined in 
167.9   ~~paragraphs~~ paragraph (a) ~~to (i)~~, clauses (1) to (6), and section 
167.10  352.01, subdivision 11.  
167.11     ~~(j)~~ (c) For a public employee who has prior service covered 
167.12  by a local police or firefighters relief association that has 
167.13  consolidated with the public employees retirement association or 
167.14  to which section 353.665 applies, and who has elected the type 
167.15  of benefit coverage provided by the public employees police and 
167.16  fire fund either under section 353A.08 following the 
167.17  consolidation or under section 353.665, subdivision 4, 
167.18  "applicable service" is a period of service credited by the 
167.19  local police or firefighters relief association as of the 
167.20  effective date of the consolidation based on law and on bylaw 
167.21  provisions governing the relief association on the date of the 
167.22  initiation of the consolidation procedure. 
167.23     (d) For persons who, after January 1, 2002, either first 
167.24  become members or terminated membership under subdivision 11b, 
167.25  and again become members, of the public employees retirement 
167.26  plan, the public employees police and fire plan under this 
167.27  chapter, or the local government correctional employee 
167.28  retirement plan under chapter 353E, whichever applies, 
167.29  "allowable service" means credit for compensated hours from 
167.30  which deductions are made, or for which payments are made in 
167.31  lieu of salary deductions as provided under this subdivision, 
167.32  and which are deposited and credited in the fund as provided in 
167.33  section 353.27, determined as follows: 
167.34     (1) one month of allowable service credit for each month 
167.35  during which the employee has received salary for 80 or more 
167.36  compensated hours; or 
168.1      (2) a fraction of one month of allowable service for each 
168.2   month for which the employee has received salary for less than 
168.3   80 compensated hours equal to the percentage relationship that 
168.4   the number of compensated hours bear to 80 hours. 
168.5      (e) Elected officials and other public employees who are 
168.6   compensated solely on an annual basis shall be granted a full 
168.7   year of credit for each year for which compensation is earned. 
168.8      (f) Allowable service that is determined and credited on a 
168.9   fractional basis must be used only in calculating the amount of 
168.10  benefits payable.  In determining the length of service required 
168.11  for vesting, a member shall be granted a month of service credit 
168.12  for each month in which the member received compensation from 
168.13  which employee contributions were deducted.  For periods of 
168.14  part-time service that are duplicated service credit, section 
168.15  356.30, subdivision 1, paragraphs (g) and (h), govern. 
168.16     (g) No member shall receive more than 12 months of 
168.17  allowable service credit in a year either for vesting purposes 
168.18  or for benefit calculation purposes. 
168.19     Sec. 11.  Minnesota Statutes 2000, section 353.01, is 
168.20  amended by adding a subdivision to read: 
168.21     Subd. 38.  [BUSINESS YEAR.] "Business year" means the first 
168.22  day of the first full pay period through the last day of the 
168.23  last full pay period of the 12-month fiscal year applicable to 
168.24  the respective governmental subdivision. 
168.25     Sec. 12.  Minnesota Statutes 2000, section 353.01, is 
168.26  amended by adding a subdivision to read: 
168.27     Subd. 39.  [COMPENSATED HOURS.] "Compensated hours" means 
168.28  the hours during which an employee performs services in one or 
168.29  more positions for a single governmental subdivision for which 
168.30  the employee receives compensation.  The term also includes the 
168.31  following: 
168.32     (1) paid holiday hours for which the employee is not 
168.33  required to work; 
168.34     (2) paid used sick leave hours; 
168.35     (3) paid used personal leave hours and vacation hours; and 
168.36     (4) the paid hours drawn from accrued compensatory time. 
169.1      Sec. 13.  Minnesota Statutes 2000, section 353.27, 
169.2   subdivision 2, is amended to read: 
169.3      Subd. 2.  [EMPLOYEE CONTRIBUTION.] (a) The employee 
169.4   contribution is ~~an~~ the following applicable percentage of total 
169.5   salary amount ~~(1)~~ for a "basic member" ~~equal to 8.75 percent of~~ 
169.6   ~~total salary;~~ and ~~(2)~~ for a "coordinated member" ~~equal to 4.75~~ 
169.7   ~~percent of total salary.~~: 
169.8                            Basic Program     Coordinated Program
169.9   Before January 1, 2002          8.75                  4.75  
169.10  Effective January 1, 2002       9.10                  5.10  
169.11     (b) These contributions must be made by deduction from 
169.12  salary in the manner provided in subdivision 4.  Where any 
169.13  portion of a member's salary is paid from other than public 
169.14  funds, such member's employee contribution must be based on the 
169.15  total salary received from all sources. 
169.16     Sec. 14.  Minnesota Statutes 2000, section 353.27, 
169.17  subdivision 3, is amended to read: 
169.18     Subd. 3.  [EMPLOYER CONTRIBUTION.] (a) The employer 
169.19  contribution is ~~an~~ the following applicable percentage of total 
169.20  salary amount ~~equal to the employee contribution under~~ 
169.21  ~~subdivision 2.~~: 
169.22                          Basic Program      Coordinated Program  
169.23  Before January 1, 2002        8.75                  4.75 
169.24  Effective January 1, 2002     9.10                  5.10  
169.25     (b) This contribution must be made from funds available to 
169.26  the employing subdivision by the means and in the manner 
169.27  provided in section 353.28. 
169.28     Sec. 15.  Minnesota Statutes 2000, section 353.27, 
169.29  subdivision 4, is amended to read: 
169.30     Subd. 4.  [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS; 
169.31  MEMBER STATUS.] (a) A representative authorized by the head of 
169.32  each department shall deduct employee contributions from the 
169.33  salary of each employee who qualifies for membership under this 
169.34  chapter and remit payment in a manner prescribed by the 
169.35  executive director for the aggregate amount of the employee 
169.36  contributions, the employer contributions and the additional 
170.1   employer contributions to be received within 14 calendar days.  
170.2   The head of each department or the person's designee shall for 
170.3   each pay period submit to the association a salary deduction 
170.4   report in the format prescribed by the executive director.  Data 
170.5   to be submitted as part of salary deduction reporting must 
170.6   include, but are not limited to:  
170.7      (1) the legal names and social security numbers of 
170.8   employees who are members; 
170.9      (2) the amount of each employee's salary deduction; 
170.10     (3) the amount of salary from which each deduction was 
170.11  made; 
170.12     (4) the beginning and ending dates of the payroll period 
170.13  covered and the date of actual payment; ~~and~~ 
170.14     (5) adjustments or corrections covering past pay periods; 
170.15  and 
170.16     (6) the number of compensated hours of each employee during 
170.17  the payroll period.  
170.18     (b) Employers must furnish the data required for enrollment 
170.19  for each new employee who qualifies for membership in the format 
170.20  prescribed by the executive director.  The required enrollment 
170.21  data on new employees must be submitted to the association prior 
170.22  to or concurrent with the submission of the initial employee 
170.23  salary deduction.  The employer shall also report to the 
170.24  association all member employment status changes, such as leaves 
170.25  of absence, terminations, and death, and the effective dates of 
170.26  those changes, on an ongoing basis for the payroll cycle in 
170.27  which they occur.  The employer shall furnish data, forms, and 
170.28  reports as may be required by the executive director for proper 
170.29  administration of the retirement system.  Before implementing 
170.30  new or different computerized reporting requirements, the 
170.31  executive director shall give appropriate advance notice to 
170.32  governmental subdivisions to allow time for system modifications.
170.33     (c) Notwithstanding paragraph (a), the association may 
170.34  provide for less frequent reporting and payments for small 
170.35  employers. 
170.36     Sec. 16.  Minnesota Statutes 2000, section 353.27, 
171.1   subdivision 11, is amended to read: 
171.2      Subd. 11.  [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 
171.3   INFORMATION.] All governmental subdivisions shall furnish 
171.4   promptly such other information relative to the employment 
171.5   status of all employees or former employees, including but not 
171.6   limited to payroll abstracts pertaining to all past and present 
171.7   employees, as may be requested by the association or its 
171.8   executive director, including schedules of salaries applicable 
171.9   to various categories of employment, and the number of actual or 
171.10  estimated compensated hours for employees.  In the event payroll 
171.11  abstract records have been lost or destroyed, for whatever 
171.12  reason or in whatever manner, so that such schedules of salaries 
171.13  cannot be furnished therefrom, the employing governmental 
171.14  subdivision, in lieu thereof, shall furnish to the association 
171.15  an estimate of the earnings of any employee or former employee 
171.16  for any period as may be requested by the association or its 
171.17  executive director. Should the association receive such 
171.18  schedules of estimated earnings, the executive director is 
171.19  hereby authorized to use the same as a basis for making whatever 
171.20  computations might be necessary for determining obligations of 
171.21  the employee and employer to the retirement fund.  If estimates 
171.22  are not furnished by the employer pursuant to the request of the 
171.23  association or its executive director, the association may 
171.24  estimate the obligations of the employee and employer to the 
171.25  retirement fund based upon such records as are in its 
171.26  possession.  Where payroll abstracts have been lost or 
171.27  destroyed, the governmental agency need not furnish any 
171.28  information pertaining to employment prior to July 1, 1963. The 
171.29  association shall make no estimate of any obligation of any 
171.30  employee, former employee, or employer covering employment prior 
171.31  to July 1, 1963. 
171.32     Sec. 17.  Minnesota Statutes 2000, section 353.86, 
171.33  subdivision 1, is amended to read: 
171.34     Subdivision 1.  [PARTICIPATION.] Volunteer ambulance 
171.35  service personnel, as defined in section 353.01, subdivision 35, 
171.36  who are or become members of and participants in the public 
172.1   employees retirement fund or the public employees police and 
172.2   fire fund before July 1, 2002, and make contributions to either 
172.3   of those funds based on compensation for service other than 
172.4   volunteer ambulance service may elect to participate in that 
172.5   same fund with respect to compensation received for volunteer 
172.6   ambulance service, provided that the volunteer ambulance service 
172.7   is not credited to another public or private pension plan 
172.8   including the public employees retirement plan established by 
172.9   chapter 353D and provided further that the volunteer ambulance 
172.10  service is rendered for the same governmental unit for which the 
172.11  nonvolunteer ambulance service is rendered. 
172.12     Sec. 18.  Minnesota Statutes 2000, section 356.215, 
172.13  subdivision 4g, is amended to read: 
172.14     Subd. 4g.  [AMORTIZATION CONTRIBUTIONS.] (a) In addition to 
172.15  the exhibit indicating the level normal cost, the actuarial 
172.16  valuation must contain an exhibit indicating the additional 
172.17  annual contribution sufficient to amortize the unfunded 
172.18  actuarial accrued liability.  For funds governed by chapters 3A, 
172.19  352, 352B, 352C, 353, 354, 354A, and 490, the additional 
172.20  contribution must be calculated on a level percentage of covered 
172.21  payroll basis by the established date for full funding in effect 
172.22  when the valuation is prepared.  For funds governed by chapter 
172.23  3A, sections 352.90 through 352.951, chapters 352B, 352C, 
172.24  sections 353.63 through 353.68, and chapters 353C, 354A, and 
172.25  490, the level percent additional contribution must be 
172.26  calculated assuming annual payroll growth of 6.5 percent.  For 
172.27  funds governed by sections 352.01 through 352.86 and chapter 
172.28  354, the level percent additional contribution must be 
172.29  calculated assuming an annual payroll growth of five percent.  
172.30  For the fund governed by sections 353.01 through 353.46, the 
172.31  level percent additional contribution must be calculated 
172.32  assuming an annual payroll growth of six percent.  For all other 
172.33  funds, the additional annual contribution must be calculated on 
172.34  a level annual dollar amount basis. 
172.35     (b) For any fund other than the Minneapolis employees 
172.36  retirement fund and the public employees retirement association 
173.1   general plan, ~~after the first actuarial valuation date occurring~~ 
173.2   ~~after June 1, 1989,~~ if there has not been a change in the 
173.3   actuarial assumptions used for calculating the actuarial accrued 
173.4   liability of the fund, a change in the benefit plan governing 
173.5   annuities and benefits payable from the fund, a change in the 
173.6   actuarial cost method used in calculating the actuarial accrued 
173.7   liability of all or a portion of the fund, or a combination of 
173.8   the three, which change or changes by themselves without 
173.9   inclusion of any other items of increase or decrease produce a 
173.10  net increase in the unfunded actuarial accrued liability of the 
173.11  fund, the established date for full funding ~~for the first~~ 
173.12  ~~actuarial valuation made after June 1, 1989, and each successive~~ 
173.13  ~~actuarial valuation~~ is the first actuarial valuation date 
173.14  occurring after June 1, 2020.  
173.15     (c) For any fund or plan other than the Minneapolis 
173.16  employees retirement fund and the public employees retirement 
173.17  association general plan, ~~after the first actuarial valuation~~ 
173.18  ~~date occurring after June 1, 1989,~~ if there has been a change in 
173.19  any or all of the actuarial assumptions used for calculating the 
173.20  actuarial accrued liability of the fund, a change in the benefit 
173.21  plan governing annuities and benefits payable from the fund, a 
173.22  change in the actuarial cost method used in calculating the 
173.23  actuarial accrued liability of all or a portion of the fund, or 
173.24  a combination of the three, and the change or changes, by 
173.25  themselves and without inclusion of any other items of increase 
173.26  or decrease, produce a net increase in the unfunded actuarial 
173.27  accrued liability in the fund, the established date for full 
173.28  funding must be determined using the following procedure:  
173.29     (i) the unfunded actuarial accrued liability of the fund 
173.30  must be determined in accordance with the plan provisions 
173.31  governing annuities and retirement benefits and the actuarial 
173.32  assumptions in effect before an applicable change; 
173.33     (ii) the level annual dollar contribution or level 
173.34  percentage, whichever is applicable, needed to amortize the 
173.35  unfunded actuarial accrued liability amount determined under 
173.36  item (i) by the established date for full funding in effect 
174.1   before the change must be calculated using the interest 
174.2   assumption specified in subdivision 4d in effect before the 
174.3   change; 
174.4      (iii) the unfunded actuarial accrued liability of the fund 
174.5   must be determined in accordance with any new plan provisions 
174.6   governing annuities and benefits payable from the fund and any 
174.7   new actuarial assumptions and the remaining plan provisions 
174.8   governing annuities and benefits payable from the fund and 
174.9   actuarial assumptions in effect before the change; 
174.10     (iv) the level annual dollar contribution or level 
174.11  percentage, whichever is applicable, needed to amortize the 
174.12  difference between the unfunded actuarial accrued liability 
174.13  amount calculated under item (i) and the unfunded actuarial 
174.14  accrued liability amount calculated under item (iii) over a 
174.15  period of 30 years from the end of the plan year in which the 
174.16  applicable change is effective must be calculated using the 
174.17  applicable interest assumption specified in subdivision 4d in 
174.18  effect after any applicable change; 
174.19     (v) the level annual dollar or level percentage 
174.20  amortization contribution under item (iv) must be added to the 
174.21  level annual dollar amortization contribution or level 
174.22  percentage calculated under item (ii); 
174.23     (vi) the period in which the unfunded actuarial accrued 
174.24  liability amount determined in item (iii) is amortized by the 
174.25  total level annual dollar or level percentage amortization 
174.26  contribution computed under item (v) must be calculated using 
174.27  the interest assumption specified in subdivision 4d in effect 
174.28  after any applicable change, rounded to the nearest integral 
174.29  number of years, but not to exceed 30 years from the end of the 
174.30  plan year in which the determination of the established date for 
174.31  full funding using the procedure set forth in this clause is 
174.32  made and not to be less than the period of years beginning in 
174.33  the plan year in which the determination of the established date 
174.34  for full funding using the procedure set forth in this clause is 
174.35  made and ending by the date for full funding in effect before 
174.36  the change; and 
175.1      (vii) the period determined under item (vi) must be added 
175.2   to the date as of which the actuarial valuation was prepared and 
175.3   the date obtained is the new established date for full funding.  
175.4      (d) For the Minneapolis employees retirement fund, the 
175.5   established date for full funding is June 30, 2020. 
175.6      (e) For the public employees retirement association general 
175.7   plan, the established date for full funding is June 30, 2031. 
175.8      (f) For the retirement plans for which the annual actuarial 
175.9   valuation indicates an excess of valuation assets over the 
175.10  actuarial accrued liability, the valuation assets in excess of 
175.11  the actuarial accrued liability must be recognized as a 
175.12  reduction in the current contribution requirements by an amount 
175.13  equal to the amortization of the excess expressed as a level 
175.14  percentage of pay over a 30-year period beginning anew with each 
175.15  annual actuarial valuation of the plan. 
175.16     Sec. 19.  [IMPLEMENTATION PLAN; MAJOR STATEWIDE RETIREMENT 
175.17  SYSTEM ADMINISTRATIVE SERVICES CONSOLIDATION.] 
175.18     (a) Based on the July 15, 2001, report required under Laws 
175.19  1999, chapter 222, article 22, section 5, the executive 
175.20  directors of the Minnesota state retirement system, the public 
175.21  employees retirement association, and the teachers retirement 
175.22  association jointly shall prepare a report detailing the 
175.23  implementation steps that would be necessary to consolidate the 
175.24  administrations of the three systems into a single 
175.25  administrative structure if the legislature subsequently 
175.26  determines that such a consolidation would be in the best 
175.27  interests of the state, its taxpayers, and its public employees. 
175.28     (b) The report must include the draft proposed legislation 
175.29  that would be required to effect an administrative consolidation 
175.30  as well as a detailed schedule and timetable of the completion 
175.31  steps for a consolidation. 
175.32     (c) The report must be filed by February 15, 2003, with the 
175.33  chair of the legislative commission on pensions and retirement, 
175.34  the chair of the senate committee on state and local government 
175.35  operations, and the chair of the house committee on government 
175.36  operations and veterans affairs policy. 
176.1      Sec. 20.  [IMPLEMENTATION PLAN; AGGREGATION OF TEACHER 
176.2   RETIREMENT PLANS.] 
176.3      (a) The executive director of the teachers retirement 
176.4   association, the secretary of the Duluth teachers retirement 
176.5   fund association, the executive director of the Minneapolis 
176.6   teachers retirement fund association, and the secretary of the 
176.7   St. Paul teachers retirement fund association jointly shall 
176.8   prepare a report detailing the steps that would be necessary to 
176.9   create a restructured teacher retirement plan if the legislature 
176.10  subsequently determines that this restructuring would be in the 
176.11  best interests of the state, its taxpayers, and the public 
176.12  education community.  
176.13     (b) In preparing the report, the pension plan 
176.14  administrators must establish and consult with a task force.  
176.15  The task force must consist of representatives of the affected 
176.16  employing units and representatives of the collective bargaining 
176.17  organizations representing members of the affected pension plans.
176.18     (c) The report must include the draft proposed legislation 
176.19  that would be required to create a restructured teacher 
176.20  retirement plan as well as a detailed schedule and timetable of 
176.21  the completion steps for the creation of a restructured teacher 
176.22  retirement plan. 
176.23     (d) The report must be filed by February 15, 2002, with the 
176.24  chair of the legislative commission on pensions and retirement, 
176.25  the chair of the senate committee on state and local government 
176.26  operations, and the chair of the house committee on government 
176.27  operations and veterans affairs policy. 
176.28     Sec. 21.  [PERA-GENERAL FINANCING STUDY.] 
176.29     The report prepared by the consulting actuary retained by 
176.30  the legislative commission on pensions and retirement under 
176.31  Minnesota Statutes, section 3.85, subdivision 11, paragraph (d), 
176.32  following the completion of the July 1, 2001, actuarial 
176.33  valuations must include a specific finding on the adequacy of 
176.34  the financial support rates of the general employees retirement 
176.35  plan of the public employees retirement association and a 
176.36  specific recommendation on any needed increase in those 
177.1   financial support rates. 
177.2      Sec. 22.  [EFFECTIVE DATE.] 
177.3      (a) Section 4, as it relates to the exclusion of school 
177.4   district employees, is effective June 30, 2001. 
177.5      (b) Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, and 17 are 
177.6   effective July 1, 2002. 
177.7      (c) Section 18 is effective for actuarial valuations 
177.8   prepared after June 1, 2001. 
177.9      (d) Sections 12, 13, 14, 15, and 16 are effective July 1, 
177.10  2001.  
177.11     (e) Sections 19, 20, and 21 are effective the day following 
177.12  final enactment. 
177.13                             ARTICLE 12 
177.14                    MINNESOTA STATE COLLEGES AND
177.15             UNIVERSITIES SYSTEM RETIREMENT PROVISIONS
177.16     Section 1.  Minnesota Statutes 2000, section 354.41, 
177.17  subdivision 4, is amended to read: 
177.18     Subd. 4.  [MEMBERSHIP ELIGIBILITY FOR LABOR ORGANIZATION 
177.19  EMPLOYEES.] (a) A person who is a member on an authorized leave 
177.20  of absence and is employed as an employee or officer by ~~the~~ 
177.21  ~~Minnesota federation of teachers or its affiliated branches~~ 
177.22  ~~within the state, the Minnesota education association, the~~ 
177.23  ~~Minnesota association of school principals, the Minnesota~~ 
177.24  ~~association of secondary school principals or the Minnesota~~ a 
177.25  labor organization that is the exclusive bargaining agent or the 
177.26  labor organization's state affiliate representing teachers 
177.27  covered by this chapter or by an association of school 
177.28  administrators may elect to be a coordinated member of the 
177.29  association based on that employment, subject to the limitations 
177.30  set forth in subdivisions 4a and 4b.  However, no person is 
177.31  entitled to membership under this section if the person also is 
177.32  a member of a teachers retirement association in a city of the 
177.33  first class organized under chapter 354A for the same period of 
177.34  service.  
177.35     (b) The election must be made within 90 days of commencing 
177.36  employment by the labor organization. 
178.1      Sec. 2.  [354B.32] [TRANSFER OF FUNDS TO IRAP.] 
178.2      A participant in the individual retirement account plan 
178.3   established in this chapter who has less than ten years of 
178.4   allowable service under the teachers retirement association or 
178.5   the teachers retirement fund association may elect to transfer 
178.6   an amount equal to the participant's accumulated member 
178.7   contributions to the teachers retirement association or the 
178.8   teachers retirement fund association, plus compound interest at 
178.9   the rate of six percent per annum, to the individual retirement 
178.10  account plan.  The transfers are irrevocable fund to fund 
178.11  transfers, and in no event may the participant receive direct 
178.12  payment of the money transferred prior to retirement.  If a 
178.13  participant elects the contribution transfer, all of the 
178.14  participant's allowable and formula service credit in the 
178.15  teachers retirement association or the teachers retirement fund 
178.16  association associated with the transferred amount is forfeited. 
178.17     The executive director of the teachers retirement 
178.18  association and the chief administrative officers of the 
178.19  teachers retirement fund associations, in cooperation with the 
178.20  chancellor of the Minnesota state colleges and universities 
178.21  system, shall notify participants who are eligible to transfer 
178.22  of their right to transfer and the amount that they are eligible 
178.23  to transfer, and shall, upon request, provide forms to implement 
178.24  the transfer.  The chancellor of the Minnesota state colleges 
178.25  and universities system shall assist the teachers retirement 
178.26  association and the teachers retirement fund associations in 
178.27  developing transfer forms and in implementing the transfers.  
178.28     Authority to elect a transfer under this section expires on 
178.29  July 1, 2004. 
178.30     Sec. 3.  [REPEALER.] 
178.31     Minnesota Statutes 2000, section 354.41, subdivision 9, is 
178.32  repealed. 
178.33     Sec. 4.  [EFFECTIVE DATE.] 
178.34     (a) Sections 1 to 3 are effective the day following final 
178.35  enactment. 
178.36     (b) Coverage under section 1 applies to employment as an 
179.1   officer of the interfaculty organization on or after July 1, 
179.2   1996. 
179.3                              ARTICLE 13 
179.4            CLOSED CHARTER SCHOOL RETIREMENT CONTRIBUTIONS
179.5      Section 1.  [STUDY BY THE LEGISLATIVE COMMISSION ON 
179.6   PENSIONS AND RETIREMENT.] 
179.7      (a) The legislative commission on pensions and retirement 
179.8   shall study and recommend the appropriate mechanism for 
179.9   recovering unpaid member and employer retirement plan 
179.10  contributions from charter schools that cease operations. 
179.11     (b) The report must include the draft proposed legislation 
179.12  that would be required to implement the mechanism recommended by 
179.13  the commission. 
179.14     (c) The report must be filed by February 15, 2002, with the 
179.15  chairs of the senate committees on state and local government 
179.16  operations and education and with the chairs of the house 
179.17  committees on governmental operations and veterans affairs 
179.18  policy and education. 
179.19     Sec. 2.  [EFFECTIVE DATE.] 
179.20     Section 1 is effective the day following final enactment. 
179.21                             ARTICLE 14 
179.22              LOCAL POLICE AND PAID FIRE PENSION PLANS
179.23     Section 1.  Minnesota Statutes 2000, section 423B.05, is 
179.24  amended by adding a subdivision to read: 
179.25     Subd. 4.  [RIGHT TO PARTICIPATE BY MAIL-IN BALLOT.] Active 
179.26  members, retired members, and surviving spouse members of the 
179.27  relief association have the right to participate in the election 
179.28  of board members of the association by mail-in ballot. 
179.29     Sec. 2.  Minnesota Statutes 2000, section 423B.05, is 
179.30  amended by adding a subdivision to read: 
179.31     Subd. 5.  [MAIL-IN REFERENDUM ON VOTING BY MAIL.] (a) The 
179.32  board of the association is authorized to submit the following 
179.33  question in a binding member referendum to be conducted by mail: 
179.34           "Shall the bylaws of the Minneapolis police relief 
179.35           association be amended to allow future proposed
179.36           amendments to the bylaws of the relief association
180.1            to be approved by a vote of relief association members
180.2            by mail?
180.3                                       Yes ........
180.4                                       No ........"
180.5      (b) The board of the relief association shall conduct the 
180.6   referendum by mailing a printed copy of the referendum question 
180.7   and of the ballot to all active members, retired members, and 
180.8   surviving spouse members in accordance with the voting 
180.9   procedures that the board of the relief association used in the 
180.10  most recent board election prior to March 1, 2001. 
180.11     (c) Before submitting the referendum question to a vote by 
180.12  the relief association membership, the relief association board 
180.13  shall solicit the opinions of relief association members for the 
180.14  question and against the question.  The solicitation for member 
180.15  comments must be included in the next regular relief association 
180.16  communication to relief association members following the 
180.17  proposal of the bylaw amendment and on the Web site of the 
180.18  relief association.  The comment period continues for 30 days.  
180.19  The executive director of the relief association shall prepare a 
180.20  summary of the comments of relief association members for and 
180.21  against the question in a fair and impartial manner.  A draft of 
180.22  the summary document must be placed on the Web site of the 
180.23  relief association for five days.  If a relief association board 
180.24  member challenges the objectivity of the draft summary, the 
180.25  draft summary must be reviewed by a neutral third party.  The 
180.26  neutral third party must be an accredited professional 
180.27  mediator.  The relief association executive director shall 
180.28  include the recommendations of the neutral third party in the 
180.29  final summary document.  The written summary prepared by the 
180.30  relief association executive director must be included with the 
180.31  question and the ballot mailed to relief association members. 
180.32     (d) Balloting procedures must be designed to maintain 
180.33  secrecy as to the identity of voting members.  The receipt of 
180.34  returned ballots and the counting of those ballots must be 
180.35  conducted by an accounting firm designated by the relief 
180.36  association board to perform those functions. 
181.1      (e) For adoption, the question must receive favorable votes 
181.2   from two-thirds of the relief association members who return 
181.3   ballots on the question. 
181.4      (f) If the question in paragraph (a) is approved in the 
181.5   referendum, future bylaw amendments must be conducted in the 
181.6   same manner as provided in this subdivision. 
181.7      Sec. 3.  [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 
181.8   HOC POSTRETIREMENT ADJUSTMENT.] 
181.9      In addition to the current pensions and other retirement 
181.10  benefits payable, the pensions and retirement benefits payable 
181.11  to retired police officers and firefighters and their surviving 
181.12  spouses by the Eveleth police and fire trust fund are increased 
181.13  by $100 per month.  Increases are retroactive to January 1, 2001.
181.14     Sec. 4.  [EFFECTIVE DATE.] 
181.15     (a) Sections 1 and 2 are effective on the day following 
181.16  final enactment. 
181.17     (b) If the referendum question in section 2 is approved, no 
181.18  proposed bylaw amendment may be submitted for membership 
181.19  approval by mail until January 1, 2002. 
181.20     (c) Section 3 is effective on the day after the date on 
181.21  which the Eveleth city council and the chief clerical officer of 
181.22  the city of Eveleth complete in a timely manner their compliance 
181.23  with Minnesota Statutes, section 645.021, subdivisions 2 and 3. 
181.24                             ARTICLE 15 
181.25            MINNEAPOLIS FIREFIGHTERS RELIEF ASSOCIATION
181.26               BENEFIT PLAN CODIFICATION AND REVISION
181.27     Section 1.  [423C.01] [MINNEAPOLIS FIREFIGHTERS RELIEF 
181.28  ASSOCIATION; DEFINITIONS.] 
181.29     Subdivision 1.  [TERMS.] For purposes of this chapter, 
181.30  unless the context clearly indicates otherwise, the terms 
181.31  defined in this section have the meanings given them. 
181.32     Subd. 2.  [ACTIVE MEMBER.] "Active member" means a person 
181.33  who was hired and duly appointed by the city of Minneapolis 
181.34  before June 15, 1980, as a firefighter who is regularly entered 
181.35  on the fire department payroll and who serves on active duty. 
181.36     Subd. 3.  [ACTIVE MEMBER PERCENTAGE.] "Active member 
182.1   percentage" means the total number of units accrued by active 
182.2   members divided by the sum of the total number of units to which 
182.3   eligible members are entitled and active members have accrued. 
182.4      Subd. 4.  [ACTUARIAL EQUIVALENT OR ACTUARIALLY 
182.5   EQUIVALENT.] "Actuarial equivalent" or "actuarially equivalent" 
182.6   means the condition of one annuity or benefit having an equal 
182.7   actuarial present value as another annuity or benefit determined 
182.8   as of a given date at a specified age with each actuarial 
182.9   present value based on the appropriate mortality table adopted 
182.10  by the board based on the experience of the special fund and 
182.11  approved by the actuary retained by the legislative commission 
182.12  on pensions and retirement and using the applicable 
182.13  preretirement or postretirement interest rate assumptions 
182.14  specified in section 356.216. 
182.15     Subd. 5.  [AGE.] "Age" means a person's age at the person's 
182.16  latest birthday. 
182.17     Subd. 6.  [ANNUAL POSTRETIREMENT ADJUSTMENT.] "Annual 
182.18  postretirement adjustment" means the payment of a lump-sum, 
182.19  postretirement benefit pursuant to section 423C.06, subdivision 
182.20  1, to an eligible member on June 1 following the determination 
182.21  date in any year. 
182.22     Subd. 7.  [ASSOCIATION.] "Association" means the 
182.23  Minneapolis firefighters relief association.  
182.24     Subd. 8.  [BOARD.] "Board" means the board established in 
182.25  section 423C.03 to govern the association. 
182.26     Subd. 9.  [CITY.] "City" means the city of Minneapolis. 
182.27     Subd. 10.  [DEFERRED MEMBER.] "Deferred member" means a 
182.28  person who served on active duty and was regularly entered on 
182.29  the fire department payroll and separated from active service 
182.30  prior to attaining 50 years of age and is entitled to receive a 
182.31  service pension upon reaching age 50 under the law existing at 
182.32  the time the member separated from active service for at least 
182.33  five years. 
182.34     Subd. 11.  [DEPENDENT.] "Dependent" means: 
182.35     (1) a biological or adopted child of a deceased, active, or 
182.36  retired member who is unmarried and under the age of 18; 
183.1      (2) a biological or adopted child of a deceased, active, or 
183.2   retired member who is between the ages of 18 and 22 and is 
183.3   enrolled full time at an accredited educational institution 
183.4   approved by the board; or 
183.5      (3) a biological child of an active or retired member 
183.6   conceived during the active or retired member's lifetime and 
183.7   born after the active or retired member's death. 
183.8      Subd. 12.  [DETERMINATION DATE.] "Determination date" means 
183.9   December 31 of each year. 
183.10     Subd. 13.  [DISABILITY.] "Disability" has the meaning 
183.11  specified in the bylaws of the relief association on April 1, 
183.12  2001. 
183.13     Subd. 14.  [DISCHARGE.] "Discharge" means a complete 
183.14  separation from and termination of active service as a member of 
183.15  the fire department. 
183.16     Subd. 15.  [ELIGIBLE MEMBER.] "Eligible member" means: 
183.17     (1) for purposes of section 423C.06, subdivision 1, a 
183.18  person, including a service pensioner, a disability pensioner, a 
183.19  survivor, or dependent of a deceased active member, service 
183.20  pensioner, or disability pensioner, who received a pension or 
183.21  benefit from the relief association during the 12 months before 
183.22  the determination date.  A person who received a pension or 
183.23  benefit for the entire 12 months before the determination date 
183.24  is eligible for a full annual postretirement payment.  A person 
183.25  who received a pension or benefit for less than 12 months before 
183.26  the determination date is eligible for a prorated annual 
183.27  postretirement payment; and 
183.28     (2) for purposes of section 423C.06, subdivision 4, a 
183.29  person who receives a service, survivor, or disability pension 
183.30  payable from the special fund of the association. 
183.31     Subd. 16.  [ENROLLED FULL TIME.] "Enrolled full time" means 
183.32  the situation of an individual who is in full-time attendance as 
183.33  a student at an educational institution, as determined by the 
183.34  board of trustees of the relief association in light of the 
183.35  standards and practices of the school involved.  A person who is 
183.36  paid by the person's employer while attending school at the 
184.1   request of that employer may not be considered to be a full-time 
184.2   student.  A person may be considered a full-time student during 
184.3   a period of up to four months of nonattendance during any 
184.4   12-month period if the person shows to the satisfaction of the 
184.5   board of trustees that the person intends to continue in 
184.6   full-time school attendance immediately upon the conclusion of 
184.7   the nonattendance period. 
184.8      Subd. 17.  [EXCESS INVESTMENT INCOME.] "Excess investment 
184.9   income" means the amount, if any, by which the time-weighted 
184.10  total rate of return earned by the special fund in the prior 
184.11  five fiscal years has exceeded the actual percentage increase in 
184.12  the current monthly salary of a first grade firefighter in the 
184.13  most recent fiscal year plus two percent.  The excess investment 
184.14  income must be expressed as a dollar amount and may not exceed 
184.15  one percent of the total assets of the special fund except when 
184.16  the actuarial value of assets of the special fund, according to 
184.17  the most recent annual actuarial valuation prepared in 
184.18  accordance with sections 356.215 and 356.216, is greater than 
184.19  102 percent of its actuarial accrued liabilities, in which case 
184.20  the amount must not exceed 1.5 percent of the assets of the 
184.21  special fund.  
184.22     Subd. 18.  [FIRE DEPARTMENT.] "Fire department" means the 
184.23  Minneapolis fire department. 
184.24     Subd. 19.  [FUND.] "Fund" means the special fund of the 
184.25  relief association. 
184.26     Subd. 20.  [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess 
184.27  asset amount payment" means the payment of an additional 
184.28  postretirement payment under section 423C.06, subdivision 4, to 
184.29  an eligible member on June 1 following the determination date in 
184.30  the given year. 
184.31     Subd. 21.  [NET TOTAL EXCESS ASSET AMOUNT.] "Net total 
184.32  excess asset amount" means the total excess asset amount stated 
184.33  in dollars and multiplied by one minus the active member 
184.34  percentage. 
184.35     Subd. 22.  [PERIOD OF SERVICE.] "Period of service" means: 
184.36     (1) any service rendered by a firefighter for any calendar 
185.1   month when the member receives salary from which deductions are 
185.2   made, deposited, and credited to the special fund.  Leaves of 
185.3   absence of more than 90 days, except those granted because of 
185.4   disability due to sickness or accident or to enable a member to 
185.5   accept an appointive position in the fire department, shall be 
185.6   excluded in computing a member's period of service; 
185.7      (2) any period in which the member, after entering the fire 
185.8   department, leaves to enter the military forces of the United 
185.9   States in a time of war or national emergency and subsequently 
185.10  receives an honorable discharge from the military or leaves to 
185.11  render fire prevention services to the United States government 
185.12  in a time of war or national emergency, provided the member who 
185.13  serves either applies for reinstatement in or resumes active 
185.14  duty in the fire department within six months.  During any 
185.15  period of military or fire prevention service, the individual 
185.16  shall not be considered an active member.  Any period of service 
185.17  a member qualifies for under this clause is limited as follows: 
185.18     (i) credit shall be granted for service rendered subsequent 
185.19  to July 1, 1961, but the credit shall not exceed six calendar 
185.20  years; 
185.21     (ii) no credit shall be granted for service rendered 
185.22  subsequent to July 1, 1961, if the period of service rendered 
185.23  prior to July 1, 1961, equals or exceeds six calendar years; and 
185.24     (iii) if the period of service prior to July 1, 1961, is 
185.25  less than six calendar years, credit for service subsequent to 
185.26  July 1, 1961, shall be added to the prior service, but in no 
185.27  case shall total service credit exceed six calendar years. 
185.28     Subd. 23.  [RETIRED MEMBER.] "Retired member" means a 
185.29  former active member who has terminated active service with the 
185.30  fire department and is entitled to receive a pension or benefit 
185.31  under this chapter or any predecessor law. 
185.32     Subd. 24.  [RELIEF ASSOCIATION.] "Relief association" means 
185.33  the Minneapolis firefighters relief association. 
185.34     Subd. 25.  [SURVIVING SPOUSE MEMBER.] "Surviving spouse 
185.35  member" means a person who was: 
185.36     (1) legally married to, and residing with, an active, 
186.1   deferred, or retired member both during the time the member was 
186.2   regularly entered on the payroll and serving on active duty in 
186.3   the fire department and at the time of the member's death; 
186.4      (2) not in a common law marriage; and 
186.5      (3) in the event the person was married to a retired or 
186.6   deferred member, married to that retired or deferred member for 
186.7   at least two years prior to the member's discharge from the fire 
186.8   department. 
186.9      Subd. 26.  [TIME-WEIGHTED TOTAL RATE OF 
186.10  RETURN.] "Time-weighted total rate of return" means the 
186.11  percentage amount determined by using the formula or formulas 
186.12  established by the state board of investment under section 
186.13  11A.04, clause (11), and in effect on January 1, 1987. 
186.14     Subd. 27.  [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess 
186.15  asset amount" means the difference, if positive, expressed in 
186.16  dollars, between the special fund's market value of assets after 
186.17  any deductions required by section 423C.06, subdivision 3, and 
186.18  110 percent of the actuarial accrued liabilities based on the 
186.19  actuarial valuation indicated in paragraph (b). 
186.20     (b) The total excess asset amount in paragraph (a) exists 
186.21  if the actuarial liability funding ratio, according to the most 
186.22  recent annual actuarial valuation of the special fund prepared 
186.23  in accordance with sections 69.77, 356.215, and 356.216, with 
186.24  adjustments required by section 423C.06, subdivision 3, equals 
186.25  or exceeds 110 percent. 
186.26     Subd. 28.  [UNIT.] "Unit" means 1/80 of the maximum monthly 
186.27  salary of a first grade firefighter on the first day of the 
186.28  month in which the pension benefits provided by this chapter are 
186.29  paid. 
186.30     Sec. 2.  [423C.02] [MINNEAPOLIS FIREFIGHTERS RELIEF 
186.31  ASSOCIATION.] 
186.32     Subdivision 1.  [CREATION.] The active and retired members 
186.33  of the fire department and their surviving spouses shall 
186.34  maintain the association.  The association shall be duly 
186.35  incorporated under chapter 317A.  The corporation shall have 
186.36  perpetual corporate existence.  The association shall create, 
187.1   maintain, and administer those funds and accounts as set forth 
187.2   in section 423C.04 for the benefit of its members, surviving 
187.3   spouses, and dependents.  The sources of revenue for each fund 
187.4   and account are governed by section 423C.04.  The authorized 
187.5   disbursements from each fund and account are governed by 
187.6   sections 423C.04, 423C.05, and 423C.06. 
187.7      Subd. 2.  [MEMBERSHIP.] Active members, deferred members, 
187.8   retired members, and surviving spouse members as defined in 
187.9   section 423C.01 are members of the association. 
187.10     Subd. 3.  [MANAGEMENT OF ASSOCIATION.] The board created in 
187.11  section 423C.03 shall manage, control, and operate the 
187.12  association, including the funds and accounts set forth in 
187.13  section 423C.04, according to this chapter, other applicable 
187.14  law, and the association's articles of incorporation and its 
187.15  bylaws.  Notwithstanding section 423A.01, subdivision 2, or any 
187.16  other law to the contrary, the board shall continue to govern 
187.17  the association until there are fewer than 100 members receiving 
187.18  benefits under this chapter.  Thereafter, the special fund shall 
187.19  become a trust fund according to section 423A.01, subdivision 2. 
187.20     Subd. 4.  [DISPOSITION OF ASSETS UPON CONCLUSION OF BENEFIT 
187.21  PAYMENTS.] Upon the death of the last benefit recipient and the 
187.22  certification by the chief administrative officer of the city to 
187.23  the state auditor of the absence of any remaining person 
187.24  entitled to a benefit under this chapter, all assets of the 
187.25  association or trust fund, whichever applies, shall revert to 
187.26  the city.  The city shall only use these assets for firefighting 
187.27  expenditure purposes. 
187.28     Sec. 3.  [423C.03] [BOARD MEMBERSHIP; ELECTIONS; DUTIES; 
187.29  COMPENSATION; BOND; MEETINGS; POWERS.] 
187.30     Subdivision 1.  [BOARD COMPOSITION AND ELECTIONS.] The 
187.31  board shall consist of two persons appointed by the city and ten 
187.32  other members selected by the members.  Elections for active and 
187.33  retired positions on the board shall be conducted pursuant to 
187.34  the association's bylaws.  
187.35     Subd. 2.  [BOARD OFFICERS.] The officers of the association 
187.36  shall consist of a president, one or more vice-presidents, an 
188.1   executive secretary, a treasurer, an assistant executive 
188.2   secretary, and an assistant treasurer.  Only elected members of 
188.3   the board are eligible to be officers.  Officers shall have 
188.4   those duties and responsibilities as set forth in this chapter, 
188.5   other applicable law, and the association's bylaws.  Officers 
188.6   shall be compensated as provided in subdivision 3.  All officers 
188.7   shall be elected in even years at the association's annual 
188.8   meeting.  Officers shall hold their office for a term of two 
188.9   years unless they are removed from the board before their 
188.10  two-year term expires. 
188.11     Subd. 3.  [COMPENSATION OF OFFICERS AND BOARD 
188.12  MEMBERS.] Notwithstanding any other law to the contrary, the 
188.13  association may provide for payment of the following salaries to 
188.14  its officers and board members: 
188.15     (1) the executive secretary may receive a salary not 
188.16  exceeding 30 percent of the maximum salary of a first grade 
188.17  firefighter; 
188.18     (2) the president may receive a salary not exceeding ten 
188.19  percent of the maximum salary of a first grade firefighter; and 
188.20     (3) all other elected members of the board may receive a 
188.21  salary not exceeding 2.5 percent of the maximum salary of a 
188.22  first grade firefighter. 
188.23     Subd. 4.  [BOND FOR EXECUTIVE SECRETARY AND TREASURER.] (a) 
188.24  The executive secretary and the treasurer must furnish to the 
188.25  relief association a corporate bond for the faithful performance 
188.26  of the duties of that office in an amount as the board of 
188.27  trustees from time to time may determine, subject to the minimum 
188.28  amount specified in section 69.051, subdivision 2. 
188.29     (b) The relief association must pay the premiums on these 
188.30  bonds from the general fund of the relief association. 
188.31     Subd. 5.  [MEETINGS.] Each December, the board shall hold 
188.32  an annual meeting.  All other meetings of the board shall be 
188.33  held as provided in the association's articles or bylaws.  Board 
188.34  members may participate in a board meeting by any means of 
188.35  communication through which the trustee, other board members 
188.36  participating, and all other board members physically present at 
189.1   the meeting may simultaneously hear each other during the 
189.2   meeting.  Participating in a meeting by these means is the same 
189.3   thing as being physically present at the meeting.  
189.4      Subd. 6.  [ADDITIONAL BOARD POWERS.] In addition to the 
189.5   powers granted the board by this chapter, chapter 317A, other 
189.6   applicable state and federal law, and its articles and bylaws, 
189.7   the board shall authorize and create a board of examiners.  
189.8      The board of examiners shall investigate and report on all 
189.9   applications for disability pensions and make recommendations as 
189.10  to the amount to be paid to each applicant; investigate and 
189.11  report on all disability pensioners and make recommendations as 
189.12  to the amount of pension to be paid to them, from year to year; 
189.13  and investigate and report on all applications for service 
189.14  pensions and claims for relief.  This board shall consist of a 
189.15  competent physician selected by the association and at least 
189.16  three members of the relief association on active duty with the 
189.17  fire department. 
189.18     Sec. 4.  [423C.04] [ASSOCIATION FUNDS AND ACCOUNTS.] 
189.19     Subdivision 1.  [DUTIES.] The association shall create, 
189.20  maintain, and administer the funds and accounts in this 
189.21  section.  The sources of revenue and authorized disbursements of 
189.22  each fund and account are governed by this section. 
189.23     Subd. 2.  [SPECIAL FUND; PURPOSE AND SOURCES OF 
189.24  REVENUE.] (a) The special fund may only be used to pay for 
189.25  defined and contingent benefits as set forth in sections 423C.05 
189.26  and 423C.06; compensation for officers and board members as set 
189.27  forth in section 423C.03, subdivision 3; expenses of officers 
189.28  and employees of the association in connection with the 
189.29  protection of the special fund; and expenses of operating, 
189.30  administering, and maintaining the association as authorized by 
189.31  this chapter, section 69.80, or other applicable law.  
189.32     (b) The special fund is derived from the following sources: 
189.33     (1) receipts from the state, including, but not limited to, 
189.34  any fire state aid, any fire insurance premium surcharge amount, 
189.35  or any additional amortization state aid; 
189.36     (2) all money derived from taxation by the city under 
190.1   section 69.77 for the support of the association and for the 
190.2   payment of benefits set forth in sections 423C.05 and 423C.06; 
190.3      (3) an amount equal to the minimum percentage specified in 
190.4   section 69.77, subdivision 2a, of the salary of a first grade 
190.5   firefighter deducted from the monthly salary of each active 
190.6   member; and 
190.7      (4) the proceeds of the investment of special fund assets. 
190.8      Subd. 3.  [GENERAL FUND.] The general fund is separate and 
190.9   distinct from the special fund.  The general fund may, 
190.10  consistent with applicable law, be expended for those purposes 
190.11  deemed appropriate by the relief association.  The city finance 
190.12  officer shall deduct from each active member's biweekly payroll 
190.13  check a sum equal to one-half of one percent of the maximum 
190.14  biweekly salary of a first grade firefighter.  This sum shall be 
190.15  forwarded to the association's treasurer and deposited in the 
190.16  general fund.  The general fund shall also consist of receipts 
190.17  from private sources, such as gifts, charges, fundraising 
190.18  projects, and dues paid by members; investment of, earnings on, 
190.19  and interest of the general fund; and all other sources.  Money 
190.20  received from other sources may also be deposited in the general 
190.21  fund. 
190.22     Subd. 4.  [HEALTH INSURANCE ACCOUNTS.] Notwithstanding any 
190.23  law to the contrary, contributions of active members of the 
190.24  association with at least 25 years of service made after the 
190.25  25th year of service must be deposited in a separate account and 
190.26  used to pay health care costs of the individual member upon 
190.27  retirement.  The board shall adopt rules regarding the frequency 
190.28  and amounts of distributions from these accounts.  A member with 
190.29  an account established pursuant to this section is entitled, 
190.30  upon retirement or disability, to receive periodic distributions 
190.31  from the account, in the amount and with the frequency specified 
190.32  by the retiring member consistent with the board's rules. 
190.33     Sec. 5.  [423C.05] [DEFINED BENEFITS.] 
190.34     Subdivision 1.  [DUTIES.] The association is authorized to 
190.35  and shall pay the benefits in this section to its members in 
190.36  accordance with this section.  All benefits authorized in this 
191.1   section shall be paid from the association's special fund. 
191.2      Subd. 2.  [SERVICE PENSION.] (a) An active member who has 
191.3   performed duty for the fire department for five years or more, 
191.4   upon written application after retiring from duty and reaching 
191.5   at least age 50, is entitled to be paid monthly for life a 
191.6   service pension under paragraph (b). 
191.7      (b) Based on the percentage that the actuarial value of 
191.8   assets of the special fund equal to the actuarial accrued 
191.9   liabilities of the special fund according to the most recent 
191.10  annual actuarial valuation of the relief association prepared in 
191.11  accordance with sections 356.215 and 356.216, the amount of the 
191.12  service pension is as follows: 
191.13  Length of    Service        Service          Service
191.14  allowable    pension        pension          pension
191.15  service      payable if     payable          payable if  
191.16  credit       under 90       if greater       greater
191.17               percent        than 89.99       than 92.49  
191.18                              percent and      percent  
191.19                              less than                    
191.20                              92.5 percent              
191.21   5 years         -            8.0 units       8.0 units 
191.22   6 years         -            9.6 units       9.6 units 
191.23   7 years         -           11.2 units      11.2 units 
191.24   8 years         -           12.8 units      12.8 units 
191.25   9 years         -           14.4 units      14.4 units 
191.26  10 years    16.0 units       16.0 units      16.0 units
191.27  11 years    17.6 units       17.6 units      17.6 units 
191.28  12 years    19.2 units       19.2 units      19.2 units  
191.29  13 years    20.8 units       20.8 units      20.8 units  
191.30  14 years    22.4 units       22.4 units      22.4 units  
191.31  15 years    24.0 units       24.0 units      24.0 units 
191.32  16 years    25.6 units       25.6 units      25.6 units 
191.33  17 years    27.2 units       27.2 units      27.2 units 
191.34  18 years    28.8 units       28.8 units      28.8 units 
191.35  19 years    30.4 units       30.4 units      30.4 units 
191.36  20 years    33.0 units       33.5 units      34.0 units 
192.1   21 years    34.6 units       35.1 units      35.6 units 
192.2   22 years    36.2 units       37.7 units      37.2 units 
192.3   23 years    37.8 units       38.3 units      38.8 units 
192.4   24 years    39.4 units       39.9 units      40.4 units 
192.5   25 years 
192.6    or more    41.0 units       41.5 units      42.0 units
192.7      (c) A member entitled to a benefit under this subdivision 
192.8   may elect to have it paid as an optional retirement annuity 
192.9   pursuant to the conditions set forth in subdivision 8.  A member 
192.10  receiving a benefit pursuant to subdivision 5 or 6 shall not 
192.11  simultaneously be entitled to a benefit under this subdivision. 
192.12     Subd. 3.  [CALCULATION OF SERVICE PENSION FOR DEFERRED 
192.13  MEMBERS.] An association member who has performed services for 
192.14  the fire department for five years or more but has not reached 
192.15  the age of 50 years shall be eligible to retire from the 
192.16  department, without forfeiting service pension rights.  The 
192.17  member shall, upon application, be placed on the association's 
192.18  deferred pension roll.  The association shall, upon board 
192.19  approval, pay the pension of any member on the deferred pension 
192.20  roll who has attained 50 years of age from the date the 
192.21  application is approved.  The pension shall be paid in 
192.22  accordance with the schedule in subdivision 2.  Any person 
192.23  making this application waives all other rights, claims, or 
192.24  demands against the association for any cause that may have 
192.25  arisen from or that may be attributable to the person's service 
192.26  in the fire department.  A member entitled to a benefit under 
192.27  this subdivision may elect to have the benefit paid as an 
192.28  optional retirement annuity pursuant to the conditions set forth 
192.29  in subdivision 7.  
192.30     Subd. 4.  [TEMPORARY DISABILITY PENSION.] An active member 
192.31  who, by sickness or accident, becomes temporarily disabled from 
192.32  performing firefighter duties for the fire department shall be 
192.33  entitled to a temporary disability pension.  No allowance for 
192.34  disability shall be made unless notice of the disability and an 
192.35  application for benefits is made by or on behalf of the disabled 
192.36  member within 90 days after the beginning of the disability.  
193.1   This application shall include a certificate from a qualified 
193.2   medical professional setting forth the cause, nature, and extent 
193.3   of the disability.  This certificate must also conclude that the 
193.4   disability was incurred or sustained while the member was in the 
193.5   service of the fire department.  The board shall utilize the 
193.6   board of examiners established pursuant to section 423C.03, 
193.7   subdivision 6, to investigate and report on an application for 
193.8   benefits pursuant to this section and make recommendations as to 
193.9   eligibility and the benefit amount to be paid.  A member 
193.10  entitled to a disability pension shall receive benefits in the 
193.11  amount and manner determined by the board. 
193.12     Subd. 5.  [SERVICE-RELATED PERMANENT DISABILITY 
193.13  PENSION.] An active member who becomes permanently disabled as 
193.14  the result of a service-related disease or injury shall, upon 
193.15  application and approval of the board, be entitled to a pension 
193.16  of 42 units or in the amount determined under subdivision 8.  
193.17  The application for service-related permanent disability shall 
193.18  include a certificate from a qualified medical professional 
193.19  setting forth the permanent nature of the disability or disease 
193.20  and that it was service related.  The board shall utilize the 
193.21  board of examiners established pursuant to section 423C.03, 
193.22  subdivision 6, to investigate and make recommendations on an 
193.23  application for a pension pursuant to this subdivision. 
193.24     Subd. 6.  [NON-SERVICE-RELATED PERMANENT DISABILITY 
193.25  PENSION.] An active member who, by sickness or accident, becomes 
193.26  permanently disabled from performing firefighter duties for the 
193.27  fire department shall be entitled to a permanent disability 
193.28  pension.  No allowance for disability shall be made unless 
193.29  notice of the disability and an application for benefits is made 
193.30  by or on behalf of the disabled member within 90 days after the 
193.31  beginning of the disability.  This application shall include a 
193.32  certificate from a qualified medical professional setting forth 
193.33  the cause, nature, and extent of the disability.  The board 
193.34  shall utilize the board of examiners established pursuant to 
193.35  section 423C.03, subdivision 6, to investigate and report on an 
193.36  application for benefits pursuant to this section and make 
194.1   recommendations as to eligibility and the benefit amount to be 
194.2   paid.  A member entitled to a disability pension shall receive 
194.3   benefits in the amount and manner determined by the board, not 
194.4   to exceed 41 units. 
194.5      Subd. 7.  [SURVIVING SPOUSE AND DEPENDENT 
194.6   PENSIONS.] Notwithstanding any other law to the contrary, when a 
194.7   service pensioner, disability pensioner, deferred pensioner, or 
194.8   active member of the association dies, recipient beneficiaries 
194.9   are entitled to a pension or pensions, as follows: 
194.10     (1) to a surviving spouse, a pension of 22 units per month; 
194.11     (2) a surviving spouse of a deceased service pensioner, 
194.12  disability pensioner, or deferred pensioner who is otherwise not 
194.13  qualified for a pension may receive a benefit if the surviving 
194.14  spouse was legally married to the decedent for a period of two 
194.15  years and was residing with the decedent at the time of death.  
194.16  The surviving spouse benefit provided in this clause is the same 
194.17  as that provided to those who meet the definition of surviving 
194.18  spouse under section 423C.01, subdivision 25, except that if the 
194.19  surviving spouse is younger than the decedent, the surviving 
194.20  spouse benefit must be actuarially equivalent to a surviving 
194.21  spouse benefit that would have been paid to the member's spouse 
194.22  had the member been married to a person of the same or greater 
194.23  age than the member's age prior to retirement.  A benefit paid 
194.24  in this circumstance may be less than 17 units notwithstanding 
194.25  the minimum set out in this clause; 
194.26     (3) to each dependent, if the dependent's other parent is 
194.27  living, a pension not to exceed eight units per month.  
194.28  Dependents between the ages of 18 and 22 may continue to receive 
194.29  a pension upon board determination that the dependent complies 
194.30  with the requirements of section 423C.01, subdivision 11, and 
194.31  applicable association bylaws, except that if the dependent 
194.32  marries before the age of 22 years the pension shall cease as of 
194.33  the date of the marriage.  The board shall make the final 
194.34  determination with respect to eligibility for benefits and 
194.35  compliance with section 423C.01, subdivision 11; 
194.36     (4) each dependent of a deceased member after the death of 
195.1   the dependent's other parent, or in the event the other parent 
195.2   predeceases the member, is entitled to receive a pension in the 
195.3   amount the board deems necessary to properly support each 
195.4   dependent until the dependent reaches the age of not less than 
195.5   16 and not more than 18 years.  Dependents between the ages of 
195.6   18 and 22 may be entitled to continue receiving a pension upon 
195.7   board determination that the dependent complies with the 
195.8   requirements of section 423C.01, subdivision 11, and applicable 
195.9   association bylaws, except that if the dependent marries before 
195.10  the age of 22 years the pension shall cease as of the date of 
195.11  the marriage.  The board shall make the final determination with 
195.12  respect to eligibility for benefits and compliance; and 
195.13     (5) the total pension payable to a surviving spouse and all 
195.14  dependents of a deceased member shall in no event exceed 41 
195.15  units per month. 
195.16     Subd. 8.  [OPTIONAL RETIREMENT ANNUITY ELECTION.] A member 
195.17  of the association who retires under subdivision 2 or becomes 
195.18  disabled under subdivision 6 may elect an optional retirement 
195.19  annuity prior to the receipt of any benefits.  The optional 
195.20  retirement annuity may be a 50 percent, 75 percent, or 100 
195.21  percent joint survivor annuity without reinstatement in the 
195.22  event the designated beneficiary predeceases the member or a 
195.23  joint and survivor annuity with reinstatement in the event the 
195.24  member predeceases the designated beneficiary.  An optional 
195.25  retirement annuity must be actuarially equivalent to the service 
195.26  pension and automatic survivor coverage otherwise payable to the 
195.27  retired member and the member's beneficiaries.  Once selected, 
195.28  the optional annuity is irrevocable. 
195.29     Subd. 9.  [ALTERNATIVE SERVICE PENSION FOR UNMARRIED 
195.30  MEMBER.] A retired member who is not legally married on 
195.31  September 1, 1997, and remains unmarried on the effective date 
195.32  of this article may select a service pension of 42.3 units in 
195.33  lieu of a service pension under subdivision 2.  
195.34     Sec. 6.  [423C.06] [INVESTMENT-RELATED POSTRETIREMENT 
195.35  ADJUSTMENTS.] 
195.36     Subdivision 1.  [ANNUAL ADJUSTMENTS.] Notwithstanding the 
196.1   provisions of chapter 69, or any other law to the contrary, the 
196.2   association may provide annual postretirement payments to 
196.3   eligible members under this section.  No provision of or payment 
196.4   made under this section may be interpreted or relied upon by any 
196.5   member of the association to guarantee or entitle a member to 
196.6   annual postretirement adjustments for any period when the 
196.7   requirements in this section have not been met. 
196.8      Subd. 2.  [ACTUARIAL ASSETS OF SPECIAL FUND LESS THAN 102 
196.9   PERCENT.] (a) When the actuarial assets of the special fund in 
196.10  any year are less than 102 percent of its accrued liabilities 
196.11  according to the most recent annual actuarial valuation of the 
196.12  special fund prepared in accordance with sections 356.215 and 
196.13  356.216, investment-related postretirement adjustments shall be 
196.14  determined and paid pursuant to this subdivision.  Payment of 
196.15  the annual postretirement adjustment may be made only if there 
196.16  is excess investment income. 
196.17     (b) The board shall determine by May 1 of each year whether 
196.18  or not the special fund has excess investment income.  The 
196.19  amount of excess investment income, if any, must be stated as a 
196.20  dollar amount and reported by the executive secretary to the 
196.21  mayor and governing body of the city, the state auditor, the 
196.22  commissioner of finance, and the executive director of the 
196.23  legislative commission on pensions and retirement.  The dollar 
196.24  amount of excess investment income up to one percent of the 
196.25  assets of the special fund must be applied for the purpose 
196.26  specified in paragraph (c).  Excess investment income must not 
196.27  be considered as income to or assets of the special fund for 
196.28  actuarial valuations of the special fund for that year under 
196.29  this section and sections 69.77, 356.215, and 356.216, except to 
196.30  offset the annual postretirement adjustment.  Additional 
196.31  investment income is any realized or unrealized investment 
196.32  income other than the excess investment income and must be 
196.33  included in the actuarial valuations performed under this 
196.34  section and sections 69.77, 356.215, and 356.216. 
196.35     (c) The amount determined under paragraph (b) must be 
196.36  applied as follows:  the association shall apply the first 
197.1   one-half of one percent of assets that constitute excess 
197.2   investment income to the payment of an annual postretirement 
197.3   adjustment to eligible members and the second one-half of one 
197.4   percent of assets which constitute excess investment income 
197.5   shall be applied to reduce the state amortization state aid or 
197.6   supplementary amortization state aid payments otherwise due the 
197.7   association under section 423A.02 for the current calendar 
197.8   year.  The amounts of all payments to eligible members shall not 
197.9   exceed one-half of one percent of the assets of the fund.  The 
197.10  amount of each eligible member's postretirement adjustment shall 
197.11  be calculated by dividing the total number of units to which 
197.12  eligible members are entitled into the excess investment income 
197.13  available for distribution to eligible members, and then 
197.14  multiplying that result by the number of units to which each 
197.15  eligible member is entitled.  If this amount exceeds the total 
197.16  monthly benefit that the eligible member was entitled to in the 
197.17  prior year under the terms of this chapter, the association 
197.18  shall pay the eligible member the lesser amount.  Payment of the 
197.19  annual postretirement adjustment must be in a lump-sum amount on 
197.20  June 1 following the determination date in any year.  In the 
197.21  event an eligible member dies prior to the payment of the annual 
197.22  postretirement adjustment, the executive secretary shall pay the 
197.23  eligible member's estate the amount to which the member was 
197.24  entitled. 
197.25     Subd. 3.  [ACTUARIAL ASSETS OF SPECIAL FUND 102 PERCENT OR 
197.26  MORE.] (a) When the actuarial assets of the special fund in any 
197.27  year are 102 percent or more of its accrued liabilities 
197.28  according to the most recent annual actuarial valuation of the 
197.29  special fund prepared in accordance with sections 356.215 and 
197.30  356.216, an investment-related postretirement adjustment shall 
197.31  be determined and paid pursuant to this subdivision.  Payment of 
197.32  the annual postretirement adjustment may only be made if there 
197.33  is excess investment income. 
197.34     (b) The board shall determine by May 1 of each year whether 
197.35  or not the special fund has excess investment income.  The 
197.36  amount of excess investment income, if any, must be stated as a 
198.1   dollar amount and reported by the executive secretary to the 
198.2   mayor and governing body of the city, the state auditor, the 
198.3   commissioner of finance, and the executive director of the 
198.4   legislative commission on pensions and retirement.  The dollar 
198.5   amount of excess investment income up to 1-1/2 percent of the 
198.6   assets of the fund must be applied for the purpose specified in 
198.7   paragraph (c).  Excess investment income must not be considered 
198.8   as income to or assets of the special fund for actuarial 
198.9   valuations of the special fund for that year under this section 
198.10  and sections 69.77, 356.215, and 356.216, except to offset the 
198.11  annual postretirement adjustment.  Additional investment income 
198.12  is any realized or unrealized investment income other than the 
198.13  excess investment income and must be included in the actuarial 
198.14  valuations performed under this section and sections 69.77, 
198.15  356.215, and 356.216. 
198.16     (c) The amount determined under paragraph (b) must be 
198.17  applied as follows:  the association shall apply the 1-1/2 
198.18  percent of assets that constitute excess investment income to 
198.19  the payment of an annual postretirement adjustment to eligible 
198.20  members.  The amount of each eligible member's postretirement 
198.21  adjustment shall be calculated by dividing the total number of 
198.22  units to which eligible members are entitled into the excess 
198.23  investment income available for distribution to eligible 
198.24  members, and then multiplying that result by the number of units 
198.25  to which each eligible member is entitled.  Payment of the 
198.26  annual postretirement adjustment must be in a lump-sum amount on 
198.27  June 1 following the determination date in any year.  In the 
198.28  event an eligible member dies prior to the payment of the annual 
198.29  postretirement adjustment, the executive secretary shall pay the 
198.30  eligible member's estate the amount to which the member was 
198.31  entitled. 
198.32     Subd. 4.  [ACTUARIAL ASSETS OF SPECIAL FUND 110 PERCENT OR 
198.33  MORE.] (a) When the actuarial assets of the special fund in any 
198.34  year are 110 percent or more of its accrued liabilities 
198.35  according to the most recent annual actuarial valuation of the 
198.36  special fund prepared in accordance with sections 356.215 and 
199.1   356.216, an investment-related postretirement adjustment shall 
199.2   be determined and paid pursuant to this subdivision.  Payment of 
199.3   the annual postretirement adjustment may be made only if a total 
199.4   excess asset amount exists. 
199.5      (b) The board shall determine by May 1 of each year whether 
199.6   the special fund has a total excess asset amount for that year.  
199.7   If a total excess asset amount exists for the given year, the 
199.8   net total asset amount shall be determined.  The executive 
199.9   secretary shall report the total excess asset amount and net 
199.10  total excess asset amount to the mayor and governing body of the 
199.11  city, the state auditor, the commissioner of finance, and the 
199.12  executive director of the legislative commission on pensions and 
199.13  retirement.  The portion of the net excess asset amount which is 
199.14  distributed under this subdivision shall not be considered 
199.15  income to or assets of the special fund for actuarial valuations 
199.16  of the special fund for that year under sections 69.77, 356.215, 
199.17  and 356.216 and Laws 2000, chapter 461, except to offset the 
199.18  amount distributed. 
199.19     (c) Twenty percent of the net total excess asset amount 
199.20  determined under paragraph (b) is available for excess asset 
199.21  amount payments under paragraph (d). 
199.22     (d) Except as limited under paragraph (e), the net excess 
199.23  asset amount payment to an eligible member is equal to the 
199.24  amount determined under paragraph (c) multiplied by the units 
199.25  applicable to the eligible member and divided by the total units 
199.26  of all eligible members. 
199.27     (e) A member who is an eligible member for the entire 12 
199.28  months before the determination date is eligible for a full 
199.29  excess asset amount payment pursuant to paragraph (d).  A member 
199.30  who is an eligible member for less than 12 months before the 
199.31  determination date is eligible for a prorated excess asset 
199.32  amount payment.  If an eligible member dies before the 
199.33  determination date and before the excess asset amount payment 
199.34  commences, the association shall pay the eligible member's 
199.35  excess asset amount payment to the eligible member's surviving 
199.36  spouse or, if no surviving spouse, to the eligible member's 
200.1   estate. 
200.2      (f) The excess asset amount payments determined under this 
200.3   subdivision commence on June 1 following the determination 
200.4   date.  The board may disburse payments to eligible members in a 
200.5   lump sum, 12 monthly installments, or any other manner that the 
200.6   board determines. 
200.7      Subd. 5.  [REPORT ON ANNUAL POSTRETIREMENT 
200.8   ADJUSTMENTS.] The executive secretary shall submit a report on 
200.9   the amount of all postretirement adjustments made under this 
200.10  section and the manner in which those payments were determined 
200.11  to the state auditor, the executive director of the legislative 
200.12  commission on pensions and retirement, and the city clerk. 
200.13     Subd. 6.  [CITY TAX LEVY.] If in any year after the 
200.14  actuarial value of special fund assets, according to the most 
200.15  recent annual actuarial valuation prepared in accordance with 
200.16  sections 356.215 and 356.216, is greater than 102 percent of the 
200.17  actuarial accrued liabilities of the special fund and 
200.18  subsequently the actuarial value of assets is less than 100 
200.19  percent of the actuarial accrued liabilities according to the 
200.20  most recent annual actuarial valuation prepared according to 
200.21  sections 356.215 and 356.216, the city of Minneapolis is not 
200.22  required to levy a property tax to fund any deficit unless the 
200.23  fund has two successive years when the actuarial value of assets 
200.24  is less than 100 percent of the actuarial accrued liabilities 
200.25  according to the most recent annual actuarial valuation prepared 
200.26  according to sections 356.215 and 356.216. 
200.27     Sec. 7.  [423C.07] [ACTUARIAL VALUATION DATE.] 
200.28     Notwithstanding section 69.77, subdivision 2h, 356.215, or 
200.29  356.216, the annual actuarial valuation of the association must 
200.30  be completed by May 1 of each year. 
200.31     Sec. 8.  [423C.08] [MEMBER CONTRIBUTION REFUND TO 
200.32  BENEFICIARY UPON DEATH.] 
200.33     If an active, deferred, or retired member of the 
200.34  association dies and no survivor benefit is payable, the 
200.35  designated beneficiary of the decedent or, if none, the legal 
200.36  representative of the estate of the decedent is entitled, upon 
201.1   application, to a refund.  The refund shall be an amount equal 
201.2   to the member contributions to the credit of the decedent, plus 
201.3   interest on those contributions at an annual compounded rate of 
201.4   five percent from the first day of the month following the date 
201.5   of death of the decedent, reduced by the sum of any service 
201.6   pension or disability benefit previously paid by the fund to the 
201.7   decedent. 
201.8      Sec. 9.  [423C.09] [PAYMENTS EXEMPT FROM PROCESS.] 
201.9      All payments made, or to be made, by the association under 
201.10  this chapter shall be totally exempt from garnishment, 
201.11  execution, or other legal process, except as provided in section 
201.12  518.58, 518.581, or 518.6111.  No person entitled to a payment 
201.13  shall have the right to assign the name, nor shall the 
201.14  association have authority to recognize any assignment or to pay 
201.15  any sum on account thereof.  Any attempt to transfer any right 
201.16  or claim, or any part thereof, shall be void. 
201.17     Sec. 10.  [423C.10] [LAW GOVERNING PENSIONS AND BENEFITS.] 
201.18     A service pension or other retirement benefit for or on 
201.19  behalf of a member of the Minneapolis firefighters relief 
201.20  association must be calculated under the laws, articles of 
201.21  incorporation, or relief association bylaws in effect on the day 
201.22  that the active member terminated active employment in the 
201.23  Minneapolis fire department as a firefighter. 
201.24     Sec. 11.  [423C.11] [WORKERS' COMPENSATION ACT NOT 
201.25  AFFECTED.] 
201.26     This chapter shall not be construed as abridging, 
201.27  repealing, or amending the laws of this state relating to the 
201.28  provisions of the law commonly known as the Workers' 
201.29  Compensation Act. 
201.30     Sec. 12.  [423C.12] [RIGHT TO REDUCE PENSIONS.] 
201.31     The relief association has the right and retains the right 
201.32  to reduce the amount of pensions and benefits paid from its 
201.33  special fund and to reduce and otherwise adjust those pensions 
201.34  and benefits.  For any pension or benefit that was reduced, the 
201.35  relief association has the right and retains the right to 
201.36  increase or otherwise adjust these pensions or benefits within 
202.1   the limits of this chapter.  
202.2      Sec. 13.  [423C.13] [FINANCE DIRECTOR TO FILE REPORT WITH 
202.3   THE REVENUE COMMISSIONER.] 
202.4      (a) On or before March 1 each year, the Minneapolis finance 
202.5   director shall file with the county auditor and the commissioner 
202.6   of revenue a certificate stating that the Minneapolis 
202.7   firefighters relief association exists and including any other 
202.8   information that the commissioner or auditor may require. 
202.9      (b) The commissioner of revenue shall provide the 
202.10  Minneapolis finance director with the necessary documents for 
202.11  the city of Minneapolis and the Minneapolis firefighters relief 
202.12  association to carry out its duties and to receive the benefits 
202.13  of sections 69.011 to 69.051, 297I.05, and 297I.10. 
202.14     Sec. 14.  [423C.14] [STATE AUDITOR TO EXAMINE BOOKS.] 
202.15     (a) The state auditor, annually, shall examine the books 
202.16  and accounts of the secretary and of the treasurer of the 
202.17  Minneapolis firefighters relief association. 
202.18     (b) If the state auditor finds that any money in the 
202.19  special fund of the relief association was expended for purposes 
202.20  that were not authorized by this chapter, the state auditor 
202.21  shall report that to the governor, who shall then direct the 
202.22  commissioner of finance not to issue any further warrants to the 
202.23  relief association until the state auditor reports that the 
202.24  money which was unlawfully expended has been replaced.  The 
202.25  governor additionally may take such further action as the 
202.26  emergency may demand. 
202.27     Sec. 15.  [423C.15] [ACTUARIAL PROVISIONS.] 
202.28     Subdivision 1.  [CITY NORMAL COST CONTRIBUTION ADJUSTMENT.] 
202.29  Notwithstanding sections 69.77, 356.215, and 356.216, or other 
202.30  law to the contrary, the required city contributions toward the 
202.31  association's normal cost, as determined by the actuary, are 
202.32  reduced below that otherwise payable by the full amount of 
202.33  active member contributions required by law to be directed to 
202.34  the association's health insurance escrow account rather than to 
202.35  the special fund. 
202.36     Subd. 2.  [SUSPENSION OF NORMAL COST 
203.1   CONTRIBUTIONS.] Notwithstanding the provisions of section 69.77, 
203.2   or any other law to the contrary, if a total excess asset amount 
203.3   exists, as defined in section 423C.01, subdivision 27, paragraph 
203.4   (a), the city is not required to make a contribution to the fund 
203.5   for the normal cost of active members. 
203.6      Subd. 3.  [AMORTIZATION TREATMENT.] Notwithstanding section 
203.7   69.77, subdivision 2b, 356.215, 356.216, or any other law to the 
203.8   contrary, if the actuarial report for the Minneapolis 
203.9   firefighters relief association indicates an unfunded actuarial 
203.10  accrued liability, the unfunded obligation is to be amortized on 
203.11  a level dollar basis by December 31 of the year occurring 15 
203.12  years later.  If subsequent actuarial valuations determine a net 
203.13  actuarial experience loss incurred during the year which ended 
203.14  as of the day before the most recent actuarial valuation date, 
203.15  any unfunded liability due to that loss is to be amortized on a 
203.16  level dollar basis by December 31 of the year occurring 15 years 
203.17  later. 
203.18     Subd. 4.  [LIMITATION.] Notwithstanding subdivision 3, the 
203.19  amortization period may not exceed the average life expectancy 
203.20  of the remaining members. 
203.21     Sec. 16.  [EFFECT ON ACCRUED BENEFITS AND BENEFITS 
203.22  PAYABLE.] 
203.23     (a) The legislature intends by this article to recodify the 
203.24  prior local laws applicable to the Minneapolis firefighters 
203.25  relief association. 
203.26     (b) This article is not intended to increase or reduce the 
203.27  pensions or benefits currently payable to pension and benefit 
203.28  recipients of the Minneapolis firefighters relief association, 
203.29  except as provided in Minnesota Statutes, section 423C.05, 
203.30  subdivision 9.  All pensions and benefits payable from the 
203.31  Minneapolis firefighters relief association in force on the 
203.32  effective date of this section as reflected in the records of 
203.33  the relief association as of that date continue. 
203.34     (c) This article is not intended to modify, impair, or 
203.35  diminish the pension or benefit entitlements accrued or service 
203.36  credited to active or deferred members of the Minneapolis 
204.1   firefighters relief association on the effective date of this 
204.2   article as reflected in the records of the relief association as 
204.3   of that date.  If the secretary of the relief association 
204.4   determines that any provision of this article, except as 
204.5   provided in Minnesota Statutes, section 423C.05, subdivision 9, 
204.6   does function to modify, impair, or diminish the pension or 
204.7   benefit entitlements that had been accrued or service that had 
204.8   been credited to an active or deferred relief association 
204.9   member, the secretary shall certify that determination and a 
204.10  recommendation as to the required legislative correction, if 
204.11  any, to the chairs of the legislative commission on pensions and 
204.12  retirement, the house governmental operations committee, the 
204.13  senate governmental operations committee, and the executive 
204.14  director of the legislative commission on pensions and 
204.15  retirement. 
204.16     Sec. 17.  [REPEALER.] 
204.17     (a) Laws 1907, chapter 24; Laws 1913, chapters 318 and 419; 
204.18  Laws 1917, chapter 196; Laws 1919, chapters 515 and 523; Laws 
204.19  1921, chapter 404; Laws 1923, chapter 61; and Laws 1945, chapter 
204.20  322, are repealed. 
204.21     (b) Laws 1959, chapter 491, is repealed.  Laws 1959, 
204.22  chapter 568, as amended by Extra Session Laws 1961, chapter 3, 
204.23  section 1; and Laws 1973, chapter 361, section 1, is repealed. 
204.24     (c) Laws 1961, chapter 109, and Extra Session Laws 1961, 
204.25  chapter 3, are repealed.  Laws 1963, chapter 318, as amended by 
204.26  Laws 1965, chapter 578, section 1; Laws 1967, chapter 824, 
204.27  section 1; and Laws 1969, chapter 287, sections 1 and 2, is 
204.28  repealed.  Laws 1965, chapter 519, as amended by Laws 1967, 
204.29  chapter 819, section 1; Laws 1969, chapter 123, sections 1 and 
204.30  2; Laws 1975, chapter 57, section 1; Laws 1977, chapter 164, 
204.31  section 2; Laws 1990, chapter 589, article 1, section 5; Laws 
204.32  1992, chapter 454, sections 2 and 3; Laws 1994, chapter 591, 
204.33  article 1, section 1; Laws 1996, chapter 448, article 3, section 
204.34  1; and Laws 1997, chapter 233, article 4, section 12, is 
204.35  repealed.  Laws 1965, chapter 578, as amended by Laws 1967, 
204.36  chapter 824, section 1; and Laws 1969, chapter 287, section 1, 
205.1   is repealed.  Laws 1967, chapter 819, as amended by Laws 1969, 
205.2   chapter 123, section 1; Laws 1975, chapter 57, section 1; Laws 
205.3   1977, chapter 164, section 2; Laws 1990, chapter 589, article 1, 
205.4   section 5; Laws 1992, chapter 454, sections 2 and 3; Laws 1994, 
205.5   chapter 591, article 1, section 1; Laws 1996, chapter 448, 
205.6   article 3, section 1; and Laws 1997, chapter 233, article 4, 
205.7   section 12, is repealed.  Laws 1967, chapter 824, as amended by 
205.8   Laws 1969, chapter 287, section 1, is repealed.  Laws 1969, 
205.9   chapter 123, as amended by Laws 1975, chapter 57, section 1; 
205.10  Laws 1977, chapter 164, section 2; Laws 1990, chapter 589, 
205.11  article 1, section 5; Laws 1992, chapter 454, sections 2 and 3; 
205.12  Laws 1994, chapter 591, article 1, section 1; Laws 1996, chapter 
205.13  448, article 3, section 1; and Laws 1997, chapter 233, article 
205.14  4, section 12, is repealed.  Laws 1969, chapter 287, is repealed.
205.15     (d) Laws 1971, chapter 542, as amended by Laws 1993, 
205.16  chapter 125, article 1, section 1, is repealed.  Laws 1975, 
205.17  chapter 57, as amended by Laws 1977, chapter 164, section 2; 
205.18  Laws 1990, chapter 589, article 1, section 5; Laws 1992, chapter 
205.19  454, sections 2 and 3; Laws 1995, chapter 591, article 1, 
205.20  section 1; Laws 1996, chapter 448, article 3, section 1; and 
205.21  Laws 1997, chapter 233, article 4, section 12, is repealed.  
205.22  Laws 1977, chapter 164, section 2, as amended by Laws 1990, 
205.23  chapter 589, article 1, section 5; Laws 1992, chapter 454, 
205.24  sections 2 and 3; Laws 1994, chapter 591, article 1, section 1; 
205.25  Laws 1996, chapter 448, article 3, section 1; and Laws 1997, 
205.26  chapter 233, article 4, section 12, is repealed. 
205.27     (e) Laws 1980, chapter 607, article XV, sections 8, as 
205.28  amended by Laws 1992, chapter 471, article 2, section 2; 9, as 
205.29  amended by Laws 1987, chapter 322, section 6; Laws 1987, chapter 
205.30  372, article 2, section 5; Laws 1992, chapter 471, article 2, 
205.31  section 2; and Laws 1993, chapter 125, article 1, section 1; and 
205.32  10, as amended by Laws 1992, chapter 471, article 2, section 3, 
205.33  is repealed.  Laws 1988, chapters 572, section 4; and 574, 
205.34  section 3, are repealed.  Laws 1989, chapter 319, article 19, 
205.35  sections 6, as amended by Laws 1992, chapter 471, article 2, 
205.36  section 4; and 7, as amended by Laws 1990, chapter 570, article 
206.1   12, section 63; Laws 1992, chapter 471, article 2, sections 5 
206.2   and 6; Laws 1996, chapter 438, article 4, sections 12 and 13; 
206.3   and Laws 1997, chapter 233, article 4, sections 13 to 16, is 
206.4   repealed. 
206.5      (f) Laws 1990, chapter 589, article 1, sections 5, as 
206.6   amended by Laws 1996, chapter 448, article 3, section 1; and 
206.7   Laws 1997, chapter 233, article 4, section 12; and 6, as amended 
206.8   by Laws 1992, chapter 471, article 2, section 7, is repealed.  
206.9   Laws 1992, chapter 429, is repealed.  Laws 1992, chapter 454, 
206.10  section 2, as amended by Laws 1994, chapter 591, article 1, 
206.11  section 1; Laws 1996, chapter 448, article 3, section 1; and 
206.12  Laws 1997, chapter 233, article 4, section 12, is repealed.  
206.13  Laws 1992, chapter 471, article 2, as amended by Laws 1996, 
206.14  chapter 438, article 4, sections 12 and 13; and Laws 1997, 
206.15  chapter 233, article 4, sections 13 and 15, is repealed.  Laws 
206.16  1993, chapter 125, as amended by Laws 1997, chapter 233, article 
206.17  4, section 17, is repealed.  Laws 1993, chapter 192, section 32, 
206.18  is repealed.  Laws 1994, chapter 591, as amended by Laws 1997, 
206.19  chapter 233, article 4, section 12, is repealed.  Laws 1994, 
206.20  chapter 632, article 3, section 14; Laws 1996, chapter 448, 
206.21  articles 2, section 3; and 3, section 1; Laws 1997, chapter 233, 
206.22  article 4, sections 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, and 
206.23  22; Laws 1998, chapter 390, article 7, section 2; and Laws 2000, 
206.24  chapter 461, article 17, sections 6, 7, 8, 9, 10, 11, 12, and 
206.25  13, are repealed. 
206.26     Sec. 18.  [EFFECTIVE DATE.] 
206.27     Sections 1 to 16 are effective on July 1, 2001, or on the 
206.28  day after the city council of the city of Minneapolis and its 
206.29  chief clerical officer timely complete their compliance with 
206.30  Minnesota Statutes, section 645.021, subdivisions 2 and 3, 
206.31  whichever is later. 
206.32                             ARTICLE 16 
206.33        VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION PROVISIONS
206.34     Section 1.  Minnesota Statutes 2000, section 424A.04, is 
206.35  amended by adding a subdivision to read:  
206.36     Subd. 3.  [CONDITIONS ON RELIEF ASSOCIATION 
207.1   CONSULTANTS.] (a) If a volunteer firefighter relief association 
207.2   hires or contracts with a consultant to provide legal or 
207.3   financial advice, the association shall obtain and the 
207.4   consultant shall provide a copy of the consultant's certificate 
207.5   of insurance. 
207.6      (b) A consultant is any person who is employed under 
207.7   contract to provide legal or financial advice and who is or who 
207.8   represents to the volunteer firefighter relief association that 
207.9   the person is: 
207.10     (1) an actuary; 
207.11     (2) a licensed public accountant or a certified public 
207.12  accountant; 
207.13     (3) an attorney; 
207.14     (4) an investment advisor or manager, or an investment 
207.15  counselor; 
207.16     (5) an investment advisor or manager selection consultant; 
207.17     (6) a pension benefit design advisor or consultant; or 
207.18     (7) any other financial consultant. 
207.19     Sec. 2.  [EFFECTIVE DATE.] 
207.20     Section 1 is effective July 1, 2001. 
207.21                             ARTICLE 17 
207.22         ONE PERSON OR SMALL GROUP SERVICE CREDIT PURCHASES
207.23     Section 1.  [TEACHERS RETIREMENT ASSOCIATION; SABBATICAL 
207.24  LEAVE OF ABSENCE SERVICE CREDIT PURCHASE.] 
207.25     (a) An eligible person described in paragraph (b) is 
207.26  entitled to purchase 0.34 of a year of allowable and formula 
207.27  service credit from the teachers retirement association. 
207.28     (b) An eligible person is a person who: 
207.29     (1) was born on August 7, 1942; 
207.30     (2) was employed by independent school district No. 11, 
207.31  Anoka-Hennepin, on August 28, 1970; 
207.32     (3) was on a sabbatical leave of absence from July 1, 1977, 
207.33  to June 30, 1978; and 
207.34     (4) due to inadvertent clerical error by independent school 
207.35  district No. 11, Anoka-Hennepin, did not have full contributions 
207.36  for the sabbatical leave made in a timely fashion and 0.654 of a 
208.1   year of service credit was credited rather than one year of 
208.2   service for the sabbatical leave. 
208.3      (c) To purchase the service credit under this section, the 
208.4   eligible person must pay to the teachers retirement association 
208.5   the amount of the shortage in member contributions for the 
208.6   sabbatical leave period plus interest from June 30, 1978, to the 
208.7   date on which payment is made at an annual compound rate of 8.5 
208.8   percent.  Authority to make this payment expires on July 1, 
208.9   2002, or the date of termination of service, whichever is 
208.10  earlier. 
208.11     (d) If the eligible person makes the payment required in 
208.12  paragraph (c) in a timely manner, independent school district 
208.13  No. 11, Anoka-Hennepin, may pay the balance of the full prior 
208.14  service credit purchase payment amount calculated under 
208.15  Minnesota Statutes, section 356.55 or 356.551, whichever 
208.16  applies.  If independent school district No. 11, Anoka-Hennepin, 
208.17  does not pay the balance within 30 days of notification by the 
208.18  executive director of the teachers retirement association of the 
208.19  payment of the member contribution payment by the eligible 
208.20  person under paragraph (c), the executive director shall notify 
208.21  the commissioner of finance of that fact and the commissioner 
208.22  shall deduct from any state aid payable to independent school 
208.23  district No. 11, Anoka-Hennepin, that amount, plus interest on 
208.24  that amount of 1.5 percent per month for each month or portion 
208.25  of a month that has elapsed from the effective date of this 
208.26  section. 
208.27     (e) The eligible person shall provide any relevant 
208.28  documentation related to eligibility to make this service credit 
208.29  purchase that is required by the executive director of the 
208.30  teachers retirement association. 
208.31     Sec. 2.  [TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF 
208.32  EXTENDED LEAVE OF ABSENCE SERVICE CREDIT.] 
208.33     (a) An eligible person, as described in paragraph (b), is 
208.34  entitled to purchase allowable and formula service credit in the 
208.35  teachers retirement association for the period specified in 
208.36  paragraph (c) by making the payment specified in Minnesota 
209.1   Statutes, section 356.55. 
209.2      (b) An eligible person is a person who: 
209.3      (1) was born on May 25, 1948; 
209.4      (2) was employed by the Hutchinson public schools for 26 
209.5   years; 
209.6      (3) was granted an extended leave of absence on May 27, 
209.7   1997; and 
209.8      (4) due to a clerical error within the person's electrical 
209.9   business, omitted payment of contributions under Minnesota 
209.10  Statutes, section 354.094, for the 1997-1998 school year. 
209.11     (c) The prior service credit purchase period is the 
209.12  1997-1998, 1998-1999, and 1999-2000 school years. 
209.13     (d) The service credit purchase authority expires on August 
209.14  31, 2001, or the date of the person's retirement, whichever is 
209.15  earlier. 
209.16     Sec. 3.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PURCHASE 
209.17  OF PREVIOUSLY UNCREDITED WHITE BEAR LAKE PUBLIC SCHOOL CLERICAL 
209.18  SERVICE.] 
209.19     (a) An eligible person described in paragraph (b) is 
209.20  entitled to receive credit for one year of allowable service 
209.21  from the public employees retirement association on August 31, 
209.22  2001. 
209.23     (b) An eligible person is a person who: 
209.24     (1) was born on July 24, 1939; 
209.25     (2) was initially employed by independent school district 
209.26  No. 624, White Bear Lake, as a casual clerical employee on March 
209.27  15, 1971; 
209.28     (3) was subsequently employed as a full-time clerical 
209.29  employee by independent school district No. 624, White Bear 
209.30  Lake, from the 1973-1974 school year until the 1990-1991 school 
209.31  year; 
209.32     (4) was subsequently employed as a teacher by independent 
209.33  school district No. 624, White Bear Lake, from August 26, 1991; 
209.34  and 
209.35     (5) was not included in coverage by the public employees 
209.36  retirement association for full-time clerical employment during 
210.1   the 1973-1974 school year. 
210.2      (c) The prior service credit purchase payment must be 
210.3   determined under Minnesota Statutes, section 356.55 or 356.551, 
210.4   whichever provision is in effect, and must include the impact of 
210.5   the purchase on the eligible person's prospective retirement 
210.6   annuity from the teachers retirement association.  
210.7   Notwithstanding any provision of Minnesota Statutes, section 
210.8   356.55 or 356.551, to the contrary, independent school district 
210.9   No. 624, White Bear Lake, is obligated to pay the full required 
210.10  service credit payment, including any amount attributable to the 
210.11  teachers retirement association.  If the school district does 
210.12  not make payment of the service credit purchase amount by August 
210.13  31, 2001, the executive director of the public employees 
210.14  retirement association and the executive director of the 
210.15  teachers retirement association shall notify the commissioner of 
210.16  finance of the school district's failure.  Following 
210.17  notification, the commissioner of finance shall deduct the 
210.18  required amount from any state aid otherwise payable to 
210.19  independent school district No. 624, White Bear Lake, and shall 
210.20  transfer the appropriate amounts to the public employees 
210.21  retirement fund and the teachers retirement fund. 
210.22     (d) The eligible person must provide the executive director 
210.23  of the public employees retirement association with necessary 
210.24  documentation of the applicability of this section and with any 
210.25  other relevant information that the executive director may 
210.26  require. 
210.27     Sec. 4.  [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION; 
210.28  SERVICE CREDIT PURCHASE AUTHORIZATION.] 
210.29     (a) Notwithstanding any provision of law to the contrary, 
210.30  an eligible person described in paragraph (b) is authorized to 
210.31  purchase allowable service credit under procedures specified in 
210.32  Minnesota Statutes, section 356.55 or 356.551, whichever is in 
210.33  effect, from the Minneapolis teachers retirement fund 
210.34  association for the period described in paragraph (c). 
210.35     (b) An eligible person is a person who: 
210.36     (1) was born on July 21, 1941; 
211.1      (2) initially was employed as a teacher by independent 
211.2   school district No. 281, Robbinsdale, in December 1962; 
211.3      (3) began employment as a teacher in special school 
211.4   district No. 1, Minneapolis, in August 1985; 
211.5      (4) currently is a special education teacher at the Webster 
211.6   open school; and 
211.7      (5) had no retirement contributions or social security 
211.8   contributions withheld from compensation by special school 
211.9   district No. 1, Minneapolis, for the 1985-1986 school year. 
211.10     (c) The allowable service credit purchase period is the 
211.11  1985-1986 school year. 
211.12     (d) The eligible person must provide all relevant 
211.13  documentation of the applicability of the requirements set forth 
211.14  in paragraph (b) and any other applicable information that the 
211.15  executive director of the Minneapolis teachers retirement fund 
211.16  association may request. 
211.17     (e) Allowable service credit for the purchase period must 
211.18  be granted by the Minneapolis teachers retirement fund 
211.19  association to the eligible person upon the receipt of the 
211.20  payment amounts.  If the service credit purchase created 
211.21  additional liabilities in the teachers retirement association, 
211.22  the applicable portion of the full payment amounts must be 
211.23  transferred to that association. 
211.24     (f) The prior service credit purchase authority expires on 
211.25  September 1, 2001, or on the date of the termination of active 
211.26  teaching service with special school district No. 1, 
211.27  Minneapolis, by the eligible person, whichever occurs earlier. 
211.28     Sec. 5.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PAYMENT 
211.29  OF OMITTED SALARY DEDUCTIONS.] 
211.30     Subdivision 1.  [APPLICATION.] A person who was born on 
211.31  February 1, 1961, who was employed by Lac qui Parle county in 
211.32  March 1989, June 1989, and July 1989, but who first had public 
211.33  employees retirement association member contributions deducted 
211.34  in August 1989, is entitled to purchase service credit from the 
211.35  public employees retirement association for the service in 
211.36  March, June, and July 1989. 
212.1      Subd. 2.  [PAYMENT.] (a) The purchase payment amount for 
212.2   the service credit purchase authorized in subdivision 1 is 
212.3   governed by Minnesota Statutes, section 356.55 or 356.551, 
212.4   whichever is applicable. 
212.5      (b) To purchase the allowable service credit, the eligible 
212.6   person must pay an amount equal to the employee contribution 
212.7   rate or rates in effect during the service credit purchase 
212.8   period applied to the actual salary in effect during that 
212.9   period, plus 8.5 percent compound annual interest from the date 
212.10  the contributions should have been made until the date of actual 
212.11  payment. 
212.12     (c) Upon receipt of the payment by the eligible person as 
212.13  specified under paragraph (b), the executive director of the 
212.14  public employees retirement association shall notify the chief 
212.15  administrative officer of Lac qui Parle county of that fact.  
212.16  Within 30 days of that notification, Lac qui Parle county shall 
212.17  pay to the public employees retirement association the balance 
212.18  of the service credit purchase payment amount under Minnesota 
212.19  Statutes, section 356.55 or 356.551, whichever is in effect, 
212.20  that is not paid by the eligible person. 
212.21     (d) If Lac qui Parle county does not make the payments 
212.22  required by paragraph (c) in a timely fashion, the executive 
212.23  director of the public employees retirement association shall 
212.24  notify the commissioner of finance, who shall then deduct the 
212.25  required amounts from any state aid payable to the county, plus 
212.26  interest at the rate of one percent per month or part of a month 
212.27  that has elapsed since the date on which the eligible person 
212.28  made payment under paragraph (b). 
212.29     Subd. 3.  [APPLICATION; DOCUMENTATION.] A person described 
212.30  in subdivision 1 must apply to the executive director of the 
212.31  public employees retirement association to make the purchase.  
212.32  The application must be on a form provided by the executive 
212.33  director and must include all necessary documentation of the 
212.34  applicability of this section and any other relevant information 
212.35  that the executive director may require. 
212.36     Subd. 4.  [LIMITATION.] Authority under this section 
213.1   expires on July 1, 2002, or upon termination of service, 
213.2   whichever is earlier. 
213.3      Sec. 6.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PAYMENT 
213.4   OF OMITTED SALARY DEDUCTION.] 
213.5      Subdivision 1.  [APPLICATION.] (a) An eligible person 
213.6   described in paragraph (b) and an eligible person described in 
213.7   paragraph (c) are authorized to purchase service credit in the 
213.8   public employees retirement association general plan for the 
213.9   period specified in paragraph (d). 
213.10     (b) An eligible person is a person who: 
213.11     (1) was born on February 11, 1948; 
213.12     (2) is currently a member of the public employees 
213.13  retirement association general plan; and 
213.14     (3) is currently employed by the Minneapolis park board and 
213.15  was first employed by that board on March 8, 1983. 
213.16     (c) An eligible person is a person who: 
213.17     (1) was born on August 12, 1936; 
213.18     (2) is currently a member of the public employees 
213.19  retirement association general plan; and 
213.20     (3) is currently employed by the Minneapolis park board and 
213.21  was first employed by that board on April 4, 1983. 
213.22     (d) The service credit purchase period is any period of 
213.23  previously uncredited service, unless properly excluded under 
213.24  law, during which the eligible person in paragraph (b) or (c), 
213.25  as applicable, was employed by the Minneapolis park board 
213.26  following the date on which, under applicable requirements of 
213.27  public employees retirement association law, the applicable 
213.28  eligible person should have been reported for plan membership. 
213.29     Subd. 2.  [PAYMENT.] The purchase payment for the service 
213.30  credit purchases authorized in subdivision 1 is governed by 
213.31  Minnesota Statutes, section 356.55 or 356.551, whichever is 
213.32  applicable. 
213.33     Subd. 3.  [DOCUMENTATION.] A person described in 
213.34  subdivision 1 must apply to the executive director of the public 
213.35  employees retirement association to make the purchase.  The 
213.36  application must be in writing and must include all necessary 
214.1   documentation of the applicability of this section and any other 
214.2   relevant information required by the executive director.  
214.3      Subd. 4.  [APPLICATION DATE.] Authority to purchase service 
214.4   credit under this section terminates on January 1, 2002, or upon 
214.5   termination of the applicable person from service. 
214.6      Sec. 7.  [PERA-COORDINATED RETIREMENT PLAN; SERVICE CREDIT 
214.7   PURCHASE AUTHORIZED.] 
214.8      (a) Notwithstanding any provision of law to the contrary, 
214.9   an eligible person described in paragraph (b) is authorized to 
214.10  purchase allowable service credit from the coordinated plan of 
214.11  the public employees retirement system for the period described 
214.12  in paragraph (c) by making a prior service credit purchase 
214.13  payment required under Minnesota Statutes, section 356.55 or 
214.14  356.551, whichever is applicable.  Notwithstanding the authority 
214.15  in these sections, neither the Minneapolis employees retirement 
214.16  fund nor the city of Minneapolis is authorized to pay any 
214.17  portion of the purchase payment amount. 
214.18     (b) An eligible person is a person who: 
214.19     (1) is a current employee of the Minneapolis employees 
214.20  retirement fund and is a current member of the coordinated plan 
214.21  of the public employees retirement association and an inactive 
214.22  member of the unclassified retirement plan of the Minnesota 
214.23  state retirement system; 
214.24     (2) was born on April 26, 1949; 
214.25     (3) was employed as a full-time instructor temporary 
214.26  classification on August 15, 1981, by the accounting department, 
214.27  Carlson school of management, University of Minnesota; and 
214.28     (4) was subsequently reappointed annually as a full-time 
214.29  instructor temporary classification for an additional three 
214.30  years and terminated employment on August 14, 1985. 
214.31     (c) The allowable service credit purchase period is the 
214.32  period described in paragraph (b), clauses (3) and (4). 
214.33     (d) The eligible person must provide all relevant 
214.34  documentation of the applicability of the requirements in 
214.35  paragraph (b) and any other applicable information that the 
214.36  executive director of the public employees retirement 
215.1   association may request. 
215.2      (e) Allowable service credit for the purchase period must 
215.3   be granted by the coordinated plan of the public employees 
215.4   retirement fund to the eligible person upon receipt of the prior 
215.5   service credit purchase payment amount. 
215.6      (f) The prior service credit purchase authority expires on 
215.7   July 1, 2002, or on the date of termination of active service 
215.8   covered by the public employees retirement association by the 
215.9   eligible person, whichever occurs earlier. 
215.10     Sec. 8.  [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; PURCHASE 
215.11  OF PRIOR SERVICE CREDIT.] 
215.12     Subdivision 1.  [AUTHORIZATION.] A member of the public 
215.13  employees retirement association police and fire plan who was 
215.14  born on August 2, 1951, who was employed by the city of Brainerd 
215.15  as a police officer before February 29, 1996, and who has at 
215.16  least three years of allowable service credit with the public 
215.17  employees retirement association police and fire fund is 
215.18  entitled to purchase up to ten years of allowable service credit 
215.19  for employment by the city of Brainerd as a full-time police 
215.20  officer in a position that was not covered by the police and 
215.21  fire fund but was covered by a local relief association governed 
215.22  by Minnesota Statutes, section 69.77.  This authorization 
215.23  applies notwithstanding any contrary provision of Minnesota 
215.24  Statutes, section 353A.10.  To purchase service credit, an 
215.25  eligible person must make payments required under Minnesota 
215.26  Statutes, section 356.55 or 356.551, whichever is applicable.  
215.27  This authorization applies only if the person is not entitled to 
215.28  receive a current or deferred service pension or retirement 
215.29  annuity or a current disability benefit from another Minnesota 
215.30  public pension plan, including a local police relief 
215.31  association, for that service. 
215.32     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A person who 
215.33  desires to purchase service credit under subdivision 1 must 
215.34  apply in writing with the executive director of the public 
215.35  employees retirement association to make the purchase.  The 
215.36  application must include all necessary documentation of the 
216.1   person's qualifications to make the purchase, signed written 
216.2   permission to allow the executive director to request and 
216.3   receive necessary verification of applicable facts and 
216.4   eligibility requirements, and any other relevant information 
216.5   that the executive director may require. 
216.6      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
216.7   for the purchase period must be granted by the public employees 
216.8   retirement association to the purchasing person only upon 
216.9   receipt of the purchase payment amount.  Payment must be made 
216.10  before the person's effective date of retirement. 
216.11     Sec. 9.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PURCHASE 
216.12  OF SERVICE FOR UNCREDITED SERVICE AS A MEMBER OF THE ST. PAUL 
216.13  CITY COUNCIL.] 
216.14     Subdivision 1.  [APPLICABILITY.] This section applies to a 
216.15  person: 
216.16     (1) who was born September 10, 1938; 
216.17     (2) who began service as a member of the St. Paul city 
216.18  council in 1970; 
216.19     (3) who was eligible for membership in the public employees 
216.20  retirement association for the period from July 1, 1974, to 
216.21  March 31, 1975; 
216.22     (4) for whom no employer contributions were paid and no 
216.23  employee contributions deducted by the city of St. Paul for the 
216.24  period described in clause (3); and 
216.25     (5) who retired September 1, 2000, and is currently 
216.26  receiving retirement annuities from the St. Paul teachers 
216.27  retirement fund association, the public employees retirement 
216.28  association general plan, and the Minnesota state retirement 
216.29  system general plan. 
216.30     Subd. 2.  [PURCHASE OF SERVICE.] (a) A person described in 
216.31  subdivision 1 may purchase service credit under Minnesota 
216.32  Statutes, section 356.55, in the public employees retirement 
216.33  association general plan for the period described in subdivision 
216.34  1, clause (3). 
216.35     (b) To purchase the allowable service credit, the eligible 
216.36  person must pay an amount equal to the employee contribution 
217.1   rate or rates in effect during the service credit purchase 
217.2   period applied to the actual salary in effect during that 
217.3   period, plus 8.5 percent compound annual interest from the date 
217.4   the contributions should have been made until the date of actual 
217.5   payment. 
217.6      (c) Upon receipt of the payment under paragraph (b) by the 
217.7   eligible person, the executive director of the public employees 
217.8   retirement association shall notify the chief administrative 
217.9   officer of the city of St. Paul of that fact.  Within 30 days of 
217.10  that notification, the city of St. Paul shall pay to the public 
217.11  employees retirement association the balance of the service 
217.12  credit purchase payment amount under Minnesota Statutes, section 
217.13  356.55, that is not paid by the eligible person. 
217.14     (d) If the city of St. Paul does not make the payments 
217.15  required by paragraph (c) in a timely fashion, the executive 
217.16  director of the public employees retirement association shall 
217.17  notify the commissioner of finance, who shall then deduct the 
217.18  required amounts from any state aid payable to the city, plus 
217.19  interest at the rate of one percent per month or part of a month 
217.20  that has elapsed since the date on which the eligible person 
217.21  made payment under paragraph (b). 
217.22     Subd. 3.  [APPLICATION; DOCUMENTATION.] A person described 
217.23  in subdivision 1 must apply to the executive director of the 
217.24  public employees retirement association to make the purchase.  
217.25  The application must be on a form provided by the executive 
217.26  director and must include all necessary documentation of the 
217.27  applicability of this section and any other relevant information 
217.28  that the executive director may require. 
217.29     Subd. 4.  [LIMITATION.] Authority under this section 
217.30  expires on September 1, 2001. 
217.31     Subd. 5.  [BENEFIT REVISION DATE.] The annuity of the 
217.32  eligible individual under subdivision 1 is to be revised on the 
217.33  first day of the month following the month in which the full 
217.34  purchase price determined under subdivision 2 is received by the 
217.35  public employees retirement association. 
217.36     Subd. 6.  [LUMP-SUM PAYMENT.] The public employees 
218.1   retirement association shall also pay the person described in 
218.2   subdivision 1 a lump-sum amount equal to the difference between 
218.3   the annuity received from the association from September 1, 
218.4   2000, to the date of payment for the service credit and the 
218.5   amount the person would have received with the additional 
218.6   service credit purchased under this section. 
218.7      Sec. 10.  [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; PURCHASE 
218.8   OF SERVICE CREDIT FOR EMPLOYEE ERRONEOUSLY ENROLLED IN 
218.9   PERA-GENERAL.] 
218.10     (a) Notwithstanding any provision of law to the contrary, 
218.11  because the legislature determines that the township made a 
218.12  mistake in 1983 concerning the retirement coverage of the 
218.13  part-time town constable, an eligible person described in 
218.14  paragraph (b) is authorized to elect to transfer past service 
218.15  credit for the period May 5, 1983, to August 29, 1987, in the 
218.16  general employee retirement plan of the public employees 
218.17  retirement association to the public employees police and fire 
218.18  retirement plan.  The transfer includes the transfer of assets 
218.19  provided for in paragraph (c).  The transfer occurs following 
218.20  the receipt by the executive director of the public employees 
218.21  retirement association of the payment amounts specified in 
218.22  paragraphs (d) and (e). 
218.23     (b) An eligible person is a person who: 
218.24     (1) was born on October 23, 1956; 
218.25     (2) was hired as a part-time town constable by White Bear 
218.26  township from May 5, 1983, to August 29, 1987; and 
218.27     (3) was covered by the general employees retirement plan of 
218.28  the public employees retirement association rather than the 
218.29  public employees police and fire retirement plan for this public 
218.30  safety employer service.  
218.31     (c) Assets equal to 86.31 percent of the actuarial accrued 
218.32  liability of the general employees retirement plan of the public 
218.33  employees retirement association determined with respect to the 
218.34  eligible person by the actuary retained by the legislative 
218.35  commission on pensions and retirement in accordance with 
218.36  Minnesota Statutes, section 356.215, must be transferred from 
219.1   the general employees retirement fund to the public employees 
219.2   police and fire retirement fund.  The expense of the legislative 
219.3   commission on pensions and retirement related to these 
219.4   calculations must be reimbursed by the public employees police 
219.5   and fire fund.  The transfer of assets must be made within 30 
219.6   days of the date on which the eligible employee elects to 
219.7   transfer past service credit to the public employees police and 
219.8   fire retirement plan. 
219.9      (d) To obtain the service credit transfer under this 
219.10  section, the eligible person must pay to the public employees 
219.11  police and fire retirement plan the difference between the 
219.12  member contribution rate of the general employees retirement 
219.13  plan of the public employees retirement association and the 
219.14  member contribution rate of the public employees police and fire 
219.15  retirement plan for the period May 5, 1983, to August 29, 1987, 
219.16  applied to the eligible person's average salary for that period, 
219.17  plus 8.5 percent compound annual interest on the total from July 
219.18  1, 1985, to the date of payment.  Authority for the eligible 
219.19  person to make the payment under this paragraph expires on July 
219.20  1, 2002. 
219.21     (e) If the eligible person makes the required payment under 
219.22  paragraph (d) in a timely manner, the executive director of the 
219.23  public employees retirement association shall notify the 
219.24  clerk-treasurer of White Bear township of that fact.  Within 30 
219.25  days of that notification, White Bear township shall pay to the 
219.26  public employees police and fire fund:  (1) the balance of the 
219.27  payment amount calculated under Minnesota Statutes, section 
219.28  356.55 or 356.551, whichever is in effect, that exceeds the 
219.29  total of the amount transferred under paragraph (c) and the 
219.30  amount paid by the eligible person under paragraph (d); and (2) 
219.31  the cost associated with the actuarial calculation under 
219.32  paragraph (c).  If White Bear township does not make the payment 
219.33  required by this paragraph in a timely fashion, the executive 
219.34  director of the public employees retirement association shall 
219.35  notify the commissioner of finance of that fact, who shall then 
219.36  deduct the required amount from any subsequent state aid or 
220.1   other state payments to the township, plus interest at the rate 
220.2   of one percent per month or a part of a month that has elapsed 
220.3   since the date on which the eligible person made payment under 
220.4   paragraph (d). 
220.5      (f) The eligible person must elect to make the service 
220.6   credit transfer on a form prescribed by the executive director 
220.7   of the public employees retirement association.  The eligible 
220.8   person must supply all necessary documentation of the 
220.9   applicability of this section and any other relevant information 
220.10  that the executive director may require. 
220.11     (g) Authority under this section expires on July 1, 2002, 
220.12  or upon the retirement of the eligible person from the general 
220.13  employees retirement plan of the public employees retirement 
220.14  association or from the public employees police and fire 
220.15  retirement plan, whichever is earlier.  
220.16     Sec. 11.  [REPEALER.] 
220.17     Section 8 is repealed effective May 16, 2002. 
220.18     Sec. 12.  [EFFECTIVE DATE.] 
220.19     Sections 1 to 10 are effective the day following final 
220.20  enactment. 
220.21                             ARTICLE 18
220.22                             ELECTIONS
220.23     Section 1.  Minnesota Statutes 2000, section 10A.31, 
220.24  subdivision 3a, is amended to read: 
220.25     Subd. 3a.  [QUALIFICATION OF POLITICAL PARTIES.] (a) A 
220.26  major political party qualifies for inclusion on the income tax 
220.27  form and property tax refund return as provided in subdivision 3 
220.28  if it qualifies as a major political party by July 1 of the 
220.29  taxable year. 
220.30     (b) A minor political party qualifies for inclusion on the 
220.31  income tax form and property tax refund return as provided in 
220.32  subdivision 3 if ~~the secretary of state certifies to the~~ 
220.33  ~~commissioner of revenue~~ it qualifies as a minor party statewide 
220.34  by July 1 of the taxable year ~~that the party satisfies the~~ 
220.35  ~~following conditions:~~  
220.36     ~~(1) in the last general election, the party ran a candidate~~ 
221.1   ~~for the office of governor and lieutenant governor, secretary of~~ 
221.2   ~~state, state auditor, or attorney general, who received votes in~~ 
221.3   ~~each county that in the aggregate total at least one percent of~~ 
221.4   ~~the total number of individuals who voted in the election;~~ 
221.5      ~~(2) it is a political party, not a principal campaign~~ 
221.6   ~~committee; and~~ 
221.7      ~~(3) it has held a state convention in the last two years~~ 
221.8   ~~and an officer of the party has filed with the secretary of~~ 
221.9   ~~state a certification to that effect~~. 
221.10     (c) The secretary of state shall notify each major and 
221.11  minor political party by the first Monday in January of each 
221.12  odd-numbered year of the conditions necessary for the party to 
221.13  participate in income tax form and property tax refund return 
221.14  programs. 
221.15     (d) The secretary of state shall notify each political 
221.16  party, the commissioner of revenue, and the campaign finance and 
221.17  public disclosure board by July 1 of each year and following 
221.18  certification of the results of each general election of the 
221.19  political parties that qualify for inclusion on the income tax 
221.20  form and property tax refund return as provided in subdivision 3.
221.21     Sec. 2.  Minnesota Statutes 2000, section 10A.31, 
221.22  subdivision 7, is amended to read: 
221.23     Subd. 7.  [DISTRIBUTION OF GENERAL ACCOUNT.] (a) ~~Within two~~ 
221.24  ~~weeks after certification by the state canvassing board of~~ As 
221.25  soon as the board has obtained the results of the ~~general~~ 
221.26  primary election from the secretary of state, but no later than 
221.27  one week after certification of the primary results by the state 
221.28  canvassing board, the board must distribute the available money 
221.29  in the general account, as certified by the commissioner of 
221.30  revenue on ~~November~~ September 1 and according to allocations set 
221.31  forth in subdivision 5, in equal amounts to all candidates of a 
221.32  major political party whose names are to appear on the ballot in 
221.33  the general election and who: 
221.34     (1) have signed a spending limit agreement under section 
221.35  10A.322; 
221.36     (2) have filed the affidavit of contributions required by 
222.1   section 10A.323; 
222.2      (3) have filed the agreement required under paragraph (c); 
222.3   and 
222.4      ~~(3)~~ (4) were opposed in either the primary election or the 
222.5   general election~~; and~~.  
222.6      ~~(4) are either a candidate for statewide office who~~ 
222.7   ~~received at least five percent of the votes cast in the general~~ 
222.8   ~~election for that office or a candidate for legislative office~~ 
222.9   ~~who received at least ten percent of the votes cast in the~~ 
222.10  ~~general election for that seat.~~ 
222.11     (b) The public subsidy under this subdivision may not be 
222.12  paid in an amount that would cause the sum of the public subsidy 
222.13  paid from the party account plus the public subsidy paid from 
222.14  the general account to exceed 50 percent of the expenditure 
222.15  limit for the candidate or 50 percent of the expenditure limit 
222.16  that would have applied to the candidate if the candidate had 
222.17  not been freed from expenditure limits under section 10A.25, 
222.18  subdivision 10.  Money from the general account not paid to a 
222.19  candidate because of the 50 percent limit must be distributed 
222.20  equally among all other qualifying candidates for the same 
222.21  office until all have reached the 50 percent limit or the 
222.22  balance in the general account is exhausted. 
222.23     (c) No later than one week after the primary results have 
222.24  been certified by the state canvassing board, a candidate 
222.25  wishing to receive money distributed by the board under this 
222.26  subdivision must execute and file an agreement with the board.  
222.27  The agreement must provide that: 
222.28     (1) if the candidate does not expend or promise to disburse 
222.29  50 percent of the money distributed by the board under this 
222.30  subdivision no later than the end of the final reporting period 
222.31  preceding the general election, then the candidate agrees to 
222.32  repay to the board the remainder of the money distributed to the 
222.33  candidate under this subdivision no later than six months 
222.34  following the date of the general election; and 
222.35     (2) the candidate agrees to reimburse the board for all 
222.36  reasonable costs, including litigation costs, incurred in 
223.1   collecting any amount due following that date. 
223.2      If the board determines that a candidate has failed to 
223.3   repay money as required by an agreement under this subdivision, 
223.4   the board may not distribute any additional money to the 
223.5   candidate under this subdivision until the entirety of the 
223.6   unexpended money is repaid or discharged. 
223.7      Sec. 3.  Minnesota Statutes 2000, section 103C.311, 
223.8   subdivision 1, is amended to read: 
223.9      Subdivision 1.  [SUPERVISORS ELECTED AT LARGE.] (a) The 
223.10  district board, after the initial election has been held, shall, 
223.11  with the approval of the state board, divide a district into 
223.12  five supervisor districts for purposes of nomination for 
223.13  election.  At each election after the division, one or more 
223.14  supervisors shall be nominated from each supervisor district.  A 
223.15  supervisor must be a resident of the supervisor district to be 
223.16  elected. 
223.17     (b) If the boundary of a soil and water conservation 
223.18  district has been substantially changed by a division of the 
223.19  district, the district shall be divided into five supervisor 
223.20  districts for nomination purposes.  
223.21     (c) This subdivision does not disqualify a supervisor 
223.22  during the term for which the supervisor was elected or 
223.23  nominated for election.  Supervisors nominated from the 
223.24  supervisor districts shall be included on the ballot for 
223.25  election from the entire area included in the soil and water 
223.26  conservation district.  
223.27     (d) A certified copy of the minutes or the resolution of 
223.28  the supervisors establishing supervisor districts must be 
223.29  promptly filed by the chair of the district board with the 
223.30  county auditor of the counties where the district is located and 
223.31  with the state board. 
223.32     Sec. 4.  Minnesota Statutes 2000, section 200.02, 
223.33  subdivision 7, is amended to read: 
223.34     Subd. 7.  [MAJOR POLITICAL PARTY.] (a) "Major political 
223.35  party" means a political party that maintains a party 
223.36  organization in the state, political division or precinct in 
224.1   question and~~: (a) which~~ that has presented at least one 
224.2   candidate for election to ~~a partisan office~~ the office of: 
224.3      (1) governor and lieutenant governor, secretary of state, 
224.4   state auditor, or attorney general at the last preceding state 
224.5   general election for those offices; or 
224.6      (2) presidential elector or U.S. senator at the last 
224.7   preceding state general election~~, which~~ for presidential 
224.8   electors; and 
224.9      whose candidate received votes in each county in that 
224.10  election and received votes from not less than five percent of 
224.11  the total number of individuals who voted in that election~~; or~~. 
224.12     (b) "Major political party" also means a political party 
224.13  that maintains a party organization in the state, political 
224.14  subdivision, or precinct in question and whose members present 
224.15  to the secretary of state a petition for a place on the state 
224.16  partisan primary ballot, which petition contains signatures of a 
224.17  number of the party members equal to at least five percent of 
224.18  the total number of individuals who voted in the preceding state 
224.19  general election. 
224.20     (c) A political party whose candidate receives a sufficient 
224.21  number of votes at a state general election described in 
224.22  paragraph (a) becomes a major political party as of January 1 
224.23  following that election and retains its major party status 
224.24  notwithstanding that the party fails to present a candidate who 
224.25  receives the number and percentage of votes required under 
224.26  paragraph (a) at the following state general election. 
224.27     (d) A major political party whose candidates fail to 
224.28  receive the number and percentage of votes required under 
224.29  paragraph (a) at either state general election described by 
224.30  paragraph (a) loses major party status as of December 31 
224.31  following the most recent state general election. 
224.32     Sec. 5.  Minnesota Statutes 2000, section 200.02, 
224.33  subdivision 23, is amended to read: 
224.34     Subd. 23.  [MINOR POLITICAL PARTY.] (a) "Minor political 
224.35  party" means a political party that is not a major political 
224.36  party as defined by subdivision 7 and that has adopted a state 
225.1   constitution, designated a state party chair, held a state 
225.2   convention in the last two years, filed with the secretary of 
225.3   state no later than December 31 following the most recent state 
225.4   general election a certification that the party has met the 
225.5   foregoing requirements, and met the requirements of paragraph 
225.6   (b) or ~~(c)~~ (e), as applicable. 
225.7      (b) To be considered a minor party in all elections 
225.8   statewide, the political party must have presented at least one 
225.9   candidate for ~~a partisan office voted on statewide~~ election to 
225.10  the office of: 
225.11     (1) governor and lieutenant governor, secretary of state, 
225.12  state auditor, or attorney general, at the last preceding state 
225.13  general election for those offices; or 
225.14     (2) presidential elector or U.S. senator at the preceding 
225.15  state general election for presidential electors; and 
225.16     who received votes in each county that in the aggregate 
225.17  equal at least one percent of the total number of individuals 
225.18  who voted in the election, or its members must have presented to 
225.19  the secretary of state a nominating petition in a form 
225.20  prescribed by the secretary of state containing the signatures 
225.21  of party members in a number equal to at least one percent of 
225.22  the total number of individuals who voted in the preceding state 
225.23  general election. 
225.24     (c) A political party whose candidate receives a sufficient 
225.25  number of votes at a state general election described in 
225.26  paragraph (b) becomes a minor political party as of January 1 
225.27  following that election and retains its minor party status 
225.28  notwithstanding that the party fails to present a candidate who 
225.29  receives the number and percentage of votes required under 
225.30  paragraph (b) at the following state general election. 
225.31     (d) A minor political party whose candidates fail to 
225.32  receive the number and percentage of votes required under 
225.33  paragraph (b) at either state general election described by 
225.34  paragraph (b) loses minor party status as of December 31 
225.35  following the most recent state general election. 
225.36     ~~(c)~~ (e) To be considered a minor party in an election in a 
226.1   legislative district, the political party must have presented at 
226.2   least one candidate for a legislative office in that district 
226.3   who received votes from at least ten percent of the total number 
226.4   of individuals who voted for that office, or its members must 
226.5   have presented to the secretary of state a nominating petition 
226.6   in a form prescribed by the secretary of state containing the 
226.7   signatures of party members in a number equal to at least ten 
226.8   percent of the total number of individuals who voted in the 
226.9   preceding state general election for that legislative office. 
226.10     Sec. 6.  [200.039] [PETITION REQUIREMENTS FOR BALLOT 
226.11  QUESTIONS.] 
226.12     If a statute: 
226.13     (1) provides that a ballot question may or must be placed 
226.14  on the ballot when a specified number of individuals have signed 
226.15  a petition; and 
226.16     (2) specifies the number of individuals required under the 
226.17  statute as a percentage of the individuals who voted in a 
226.18  previous election, the statute must be construed to mean that 
226.19  the petition must be signed by a number of current voters equal 
226.20  to the required percentage specified in the statute.  The 
226.21  statute must not be construed to restrict the eligibility to 
226.22  sign the petition to only those individuals who were eligible to 
226.23  cast ballots or who did cast ballots in the previous election. 
226.24     Sec. 7.  Minnesota Statutes 2000, section 201.016, 
226.25  subdivision 1a, is amended to read: 
226.26     Subd. 1a.  [VIOLATIONS; PENALTY.] (a) The county auditor 
226.27  shall mail a violation notice to any voter who the county 
226.28  auditor can determine has voted in a precinct other than the 
226.29  precinct in which the voter maintains residence.  The notice 
226.30  must be in the form provided by the secretary of state.  The 
226.31  county auditor shall also change the status of the voter in the 
226.32  statewide registration system to "challenged" and the voter 
226.33  shall be required to provide proof of residence to either the 
226.34  county auditor or to the election judges in the voter's precinct 
226.35  before voting in the next election.  Any of the forms authorized 
226.36  by section 201.061 for registration at the polling place may be 
227.1   used for this purpose. 
227.2      (b) A voter who votes in a precinct other than the precinct 
227.3   in which the voter maintains residence after receiving an 
227.4   initial violation notice as provided in this subdivision is 
227.5   guilty of a petty misdemeanor.  ~~Any subsequent violation~~ 
227.6      (c) A voter who votes in a precinct other than the precinct 
227.7   in which the voter maintains residence after having been found 
227.8   to have committed a petty misdemeanor under paragraph (b) is 
227.9   guilty of a misdemeanor. 
227.10     (d) Reliance by the voter on inaccurate information 
227.11  regarding the location of the voter's polling place provided by 
227.12  the state, county, or municipality is an affirmative defense to 
227.13  a prosecution under this subdivision. 
227.14     Sec. 8.  Minnesota Statutes 2000, section 201.022, is 
227.15  amended to read: 
227.16     201.022 [STATEWIDE REGISTRATION SYSTEM.] 
227.17     Subdivision 1.  [ESTABLISHMENT.] The secretary of state 
227.18  shall ~~develop and implement~~ maintain a statewide voter 
227.19  registration system to facilitate voter registration and to 
227.20  provide a central database containing voter registration 
227.21  information from around the state.  The system must be 
227.22  accessible to the county auditor of each county in the state.  
227.23     Subd. 2.  [RULES.] The secretary of state shall make 
227.24  permanent rules necessary to administer the system required in 
227.25  subdivision 1.  The rules must at least:  
227.26     (1) provide for voters to submit their registration to any 
227.27  county auditor, the secretary of state, or the department of 
227.28  public safety; 
227.29     (2) provide for the establishment and maintenance of a 
227.30  central database for all voter registration information; 
227.31     (3) provide procedures for entering data into the statewide 
227.32  registration system; 
227.33     (4) provide for interaction with the computerized driver's 
227.34  license records of the department of public safety; 
227.35     (5) allow the offices of all county auditors and the 
227.36  secretary of state to add, modify, and delete information from 
228.1   the system to provide for accurate and up-to-date records; 
228.2      (6) allow the offices of all county auditors and the 
228.3   secretary of state's office to have access to the statewide 
228.4   registration system for review and search capabilities; 
228.5      (7) provide security and protection of all information in 
228.6   the statewide registration system and to ensure that 
228.7   unauthorized entry is not allowed; 
228.8      (8) provide a system for each county to identify the 
228.9   precinct to which a voter should be assigned for voting 
228.10  purposes; and 
228.11     (9) ~~prescribe a procedure for phasing in or converting~~ 
228.12  ~~existing computerized records to the statewide registration~~ 
228.13  ~~system;~~ 
228.14     ~~(10)~~ prescribe a procedure for the return of completed 
228.15  voter registration forms from the department of public safety to 
228.16  the secretary of state or the county auditor~~; and~~. 
228.17     ~~(11) provide alternate procedures, effective until December~~ 
228.18  ~~31, 1990, for updating voter records and producing polling place~~ 
228.19  ~~rosters for counties.  The secretary of state shall determine no~~ 
228.20  ~~later than June 1, 1990, whether these alternate procedures will~~ 
228.21  ~~be required.~~ 
228.22     Sec. 9.  Minnesota Statutes 2000, section 202A.19, 
228.23  subdivision 1, is amended to read: 
228.24     Subdivision 1.  [LIMITS ON LOCAL GOVERNMENT MEETINGS.] 
228.25  No special taxing district governing body, school board, county 
228.26  board of commissioners, township board, or city council may 
228.27  conduct a meeting after 6:00 p.m. on the day of a major 
228.28  political party precinct caucus.  As used in this subdivision, 
228.29  "special taxing district" has the meaning given in section 
228.30  275.066. 
228.31     Sec. 10.  Minnesota Statutes 2000, section 203B.04, 
228.32  subdivision 1, is amended to read: 
228.33     Subdivision 1.  [APPLICATION PROCEDURES.] Except as 
228.34  otherwise allowed by subdivision 2, an application for absentee 
228.35  ballots for any election may be submitted at any time not less 
228.36  than one day before the day of that election.  The county 
229.1   auditor shall prepare absentee ballot application forms in the 
229.2   format provided in the rules of the secretary of state and shall 
229.3   furnish them to any person on request.  An application submitted 
229.4   pursuant to this subdivision shall be in writing and shall be 
229.5   submitted to:  
229.6      (a) the county auditor of the county where the applicant 
229.7   maintains residence; or 
229.8      (b) the municipal clerk of the municipality, or school 
229.9   district if applicable, where the applicant maintains residence. 
229.10     An application shall be approved if it is timely received, 
229.11  signed and dated by the applicant, contains the applicant's name 
229.12  and residence and mailing addresses, and states that the 
229.13  applicant is eligible to vote by absentee ballot for one of the 
229.14  reasons specified in section 203B.02.  The application may 
229.15  contain a request for the voter's date of birth, which must not 
229.16  be made available for public inspection.  An application may be 
229.17  submitted to the county auditor or municipal clerk by an 
229.18  electronic facsimile device~~, at the discretion of the auditor or~~ 
229.19  ~~clerk~~.  An application mailed or returned in person to the 
229.20  county auditor or municipal clerk on behalf of a voter by a 
229.21  person other than the voter must be deposited in the mail or 
229.22  returned in person to the county auditor or municipal clerk 
229.23  within ten days after it has been dated by the voter and no 
229.24  later than six days before the election.  The absentee ballot 
229.25  applications or a list of persons applying for an absentee 
229.26  ballot may not be made available for public inspection until the 
229.27  close of voting on election day.  
229.28     An application under this subdivision may contain an 
229.29  application under subdivision 5 to automatically receive an 
229.30  absentee ballot application. 
229.31     Sec. 11.  Minnesota Statutes 2000, section 203B.04, 
229.32  subdivision 5, is amended to read: 
229.33     Subd. 5.  [PERMANENT ILLNESS OR DISABILITY.] (a) An 
229.34  eligible voter who reasonably expects to be permanently unable 
229.35  to go to the polling place on election day because of illness or 
229.36  disability may apply to a county auditor or municipal clerk 
230.1   under this section to automatically receive an absentee ballot 
230.2   application before each election, other than an election by mail 
230.3   conducted under section 204B.45, and to have the status as a 
230.4   permanent absentee voter indicated on the voter's registration 
230.5   record. 
230.6      (b) The secretary of state shall adopt rules governing 
230.7   procedures under this subdivision. 
230.8      Sec. 12.  Minnesota Statutes 2000, section 203B.06, is 
230.9   amended by adding a subdivision to read: 
230.10     Subd. 3a.  [UNOFFICIAL BALLOTS.] If no official ballots are 
230.11  ready at the time absentee balloting is scheduled to begin or 
230.12  the supply is exhausted before absentee balloting ends, the 
230.13  county auditor or municipal clerk shall prepare unofficial 
230.14  ballots, printed or written as nearly as practicable in the form 
230.15  of the official ballots.  These ballots may be used until the 
230.16  official ballots are available. 
230.17     Sec. 13.  Minnesota Statutes 2000, section 203B.07, 
230.18  subdivision 1, is amended to read: 
230.19     Subdivision 1.  [DELIVERY OF ENVELOPES, DIRECTIONS.] The 
230.20  county auditor or the municipal clerk shall prepare, print, and 
230.21  transmit a return envelope, a ballot envelope, and a copy of the 
230.22  directions for casting an absentee ballot to each applicant 
230.23  whose application for absentee ballots is accepted pursuant to 
230.24  section 203B.04.  The directions for casting an absentee ballot 
230.25  shall be printed in at least 14-point bold type with heavy 
230.26  leading and may be printed on the ballot envelope.  When a 
230.27  person requests the directions in Braille or on cassette tape, 
230.28  the county auditor or municipal clerk shall provide them in the 
230.29  form requested.  The secretary of state shall prepare Braille 
230.30  and cassette copies and make them available.  
230.31     When a voter registration card is sent to the applicant as 
230.32  provided in section 203B.06, subdivision 4, the directions or 
230.33  registration card shall include instructions for registering to 
230.34  vote.  
230.35     Sec. 14.  Minnesota Statutes 2000, section 203B.16, 
230.36  subdivision 1, is amended to read: 
231.1      Subdivision 1.  [MILITARY SERVICE; TEMPORARY RESIDENCE 
231.2   OUTSIDE UNITED STATES.] Sections 203B.16 to 203B.27 provide 
231.3   alternative voting procedures for eligible voters who are absent 
231.4   from the precinct where they maintain residence because they are:
231.5      ~~(a)~~ (1) either in the military or the spouses or dependents 
231.6   of individuals serving in the military; or 
231.7      ~~(b)~~ (2) temporarily outside the territorial limits of the 
231.8   United States. 
231.9      Sections 203B.16 to 203B.27 are intended to implement the 
231.10  federal Uniformed and Overseas Citizens Absentee Voting Act, 
231.11  United States Code, title 42, section 1973ff. 
231.12     Sec. 15.  Minnesota Statutes 2000, section 203B.17, 
231.13  subdivision 1, is amended to read: 
231.14     Subdivision 1.  [SUBMISSION OF APPLICATION.] (a) An 
231.15  application for absentee ballots for a voter described in 
231.16  section 203B.16 may be submitted in writing or by electronic 
231.17  facsimile device, or by electronic mail upon determination by 
231.18  the secretary of state that security concerns have been 
231.19  adequately addressed.  An application for absentee ballots for a 
231.20  voter described in section 203B.16 may be submitted by that 
231.21  voter or by that voter's parent, spouse, sister, brother, or 
231.22  child over the age of 18 years.  For purposes of an application 
231.23  under this subdivision, a person's social security number, no 
231.24  matter how it is designated, qualifies as the person's military 
231.25  identification number if the person is in the military. 
231.26     (b) An application for a voter described in section 
231.27  203B.16, subdivision 1, shall be submitted to the county auditor 
231.28  of the county where the voter maintains residence. 
231.29     (c) An application for a voter described in section 
231.30  203B.16, subdivision 2, shall be submitted to the county auditor 
231.31  of the county where the voter last maintained residence in 
231.32  Minnesota. 
231.33     (d) An application for absentee ballots for a primary shall 
231.34  also constitute an application for absentee ballots for ~~the~~ any 
231.35  ensuing general or special election conducted during the same 
231.36  calendar year in which the application is received. 
232.1      (e) There shall be no limitation of time for filing and 
232.2   receiving applications for ballots under sections 203B.16 to 
232.3   203B.27.  
232.4      Sec. 16.  Minnesota Statutes 2000, section 204B.06, 
232.5   subdivision 1, is amended to read: 
232.6      Subdivision 1.  [FORM OF AFFIDAVIT.] (a) An affidavit of 
232.7   candidacy shall state the name of the office sought and shall 
232.8   state that the candidate:  
232.9      ~~(a)~~ (1) is an eligible voter; 
232.10     ~~(b)~~ (2) has no other affidavit on file as a candidate for 
232.11  any office at the same primary or next ensuing general election, 
232.12  except that a candidate for soil and water conservation district 
232.13  supervisor in a district not located in whole or in part in 
232.14  Anoka, Hennepin, Ramsey, or Washington county, may also have on 
232.15  file an affidavit of candidacy for mayor or council member of a 
232.16  statutory or home rule charter city of not more than 2,500 
232.17  population contained in whole or in part in the soil and water 
232.18  conservation district or for town supervisor in a town of not 
232.19  more than 2,500 population contained in whole or in part in the 
232.20  soil and water conservation district; and 
232.21     ~~(c)~~ (3) is, or will be on assuming the office, 21 years of 
232.22  age or more, and will have maintained residence in the district 
232.23  from which the candidate seeks election for 30 days before the 
232.24  general election. 
232.25     An affidavit of candidacy must include a statement that the 
232.26  candidate's name as written on the affidavit for ballot 
232.27  designation is the candidate's true name or the name by which 
232.28  the candidate is commonly and generally known in the community. 
232.29     An affidavit of candidacy for partisan office shall also 
232.30  state the name of the candidate's political party or political 
232.31  principle, stated in three words or less.  
232.32     (b) This subdivision does not apply to a candidate for 
232.33  president or vice-president of the United States. 
232.34     Sec. 17.  Minnesota Statutes 2000, section 204B.07, 
232.35  subdivision 2, is amended to read: 
232.36     Subd. 2.  [PETITIONS FOR PRESIDENTIAL ELECTORS.] On 
233.1   petitions nominating presidential electors, the names of the 
233.2   candidates for president and vice-president shall be added to 
233.3   the political party or political principle stated on the 
233.4   petition.  One petition may be filed to nominate a slate of 
233.5   presidential electors equal in number to the number of electors 
233.6   to which the state is entitled.  This subdivision does not apply 
233.7   to candidates for presidential elector nominated by major 
233.8   political parties.  Major party candidates for presidential 
233.9   elector are certified under section 208.03. 
233.10     Sec. 18.  Minnesota Statutes 2000, section 204B.09, 
233.11  subdivision 1, is amended to read: 
233.12     Subdivision 1.  [CANDIDATES IN STATE AND COUNTY GENERAL 
233.13  ELECTIONS.] (a) Except as otherwise provided by this 
233.14  subdivision, affidavits of candidacy and nominating petitions 
233.15  for county, state, and federal offices filled at the state 
233.16  general election shall be filed not more than 70 days nor less 
233.17  than 56 days before the state primary.  The affidavit may be 
233.18  prepared and signed at any time between 60 days before the 
233.19  filing period opens and the last day of the filing period. 
233.20     (b) Notwithstanding other law to the contrary, the 
233.21  affidavit of candidacy must be signed in the presence of a 
233.22  notarial officer or an individual authorized to administer oaths 
233.23  under section 358.10. 
233.24     (c) This provision does not apply to candidates for 
233.25  presidential elector nominated by major political parties.  
233.26  Major party candidates for presidential elector are certified 
233.27  under section 208.03.  Other candidates for presidential 
233.28  electors may file petitions on or before the state primary day.  
233.29  Nominating petitions to fill vacancies in nominations shall be 
233.30  filed as provided in section 204B.13.  No affidavit or petition 
233.31  shall be accepted later than 5:00 p.m. on the last day for 
233.32  filing. 
233.33     (d) Affidavits and petitions for offices to be voted on in 
233.34  only one county shall be filed with the county auditor of that 
233.35  county.  Affidavits and petitions for offices to be voted on in 
233.36  more than one county shall be filed with the secretary of state. 
234.1      Sec. 19.  Minnesota Statutes 2000, section 204B.09, 
234.2   subdivision 3, is amended to read: 
234.3      Subd. 3.  [WRITE-IN CANDIDATES.] (a) A candidate for state 
234.4   or federal office who wants write-in votes for the candidate to 
234.5   be counted must file a written request with the filing office 
234.6   for the office sought no later than the day before the general 
234.7   election.  The filing officer shall provide copies of the form 
234.8   to make the request.  
234.9      (b) A candidate for president of the United States who 
234.10  files a request under this subdivision must include the name of 
234.11  a candidate for vice-president of the United States.  The 
234.12  request must also include the name of at least one candidate for 
234.13  presidential elector.  The total number of names of candidates 
234.14  for presidential elector on the request may not exceed the total 
234.15  number of electoral votes to be cast by Minnesota in the 
234.16  presidential election. 
234.17     (c) A candidate for governor who files a request under this 
234.18  subdivision must include the name of a candidate for lieutenant 
234.19  governor. 
234.20     Sec. 20.  Minnesota Statutes 2000, section 204B.20, is 
234.21  amended to read: 
234.22     204B.20 [ELECTION BOARD; ~~CHAIR~~ HEAD ELECTION JUDGE; 
234.23  DUTIES.] 
234.24     The election judges appointed to serve in an election 
234.25  precinct shall constitute the election board for that precinct.  
234.26  The appointing authority shall designate one of the election 
234.27  judges in each precinct to serve as the ~~chair of the election~~ 
234.28  ~~board~~ head election judge.  The ~~chair~~ head election judge shall 
234.29  assign specific duties to the election judges of that precinct 
234.30  as necessary or convenient to complete forms, obtain signatures, 
234.31  and perform all the other duties required of election judges.  
234.32     Sec. 21.  Minnesota Statutes 2000, section 204B.22, 
234.33  subdivision 1, is amended to read: 
234.34     Subdivision 1.  [MINIMUM NUMBER REQUIRED.] (a) A minimum of 
234.35  three election judges shall be appointed for each precinct.  In 
234.36  a combined polling place under section 204B.14, subdivision 2, 
235.1   at least one judge must be appointed from each municipality in 
235.2   the combined polling place, provided that not less than three 
235.3   judges shall be appointed for each combined polling place.  The 
235.4   appointing authorities may appoint election judges for any 
235.5   precinct in addition to the number required by this subdivision 
235.6   including additional election judges to count ballots after 
235.7   voting has ended. 
235.8      (b) An election judge may serve for all or part of election 
235.9   day, at the discretion of the appointing authority, as long as 
235.10  the minimum number of judges required is always present.  The 
235.11  head election judge designated under section 204B.20 must serve 
235.12  for all of election day and be present in the polling place 
235.13  unless another election judge has been designated by the head 
235.14  election judge to perform the functions of the head election 
235.15  judge during any absence. 
235.16     Sec. 22.  Minnesota Statutes 2000, section 204B.22, 
235.17  subdivision 3, is amended to read: 
235.18     Subd. 3.  [MINIMUM NUMBER REQUIRED IN CERTAIN PRECINCTS.] 
235.19  At each state primary or state general election in precincts 
235.20  using ~~lever voting machines or~~ an electronic voting system with 
235.21  marking devices and in which more than 400 votes were cast at 
235.22  the last similar election, the minimum number of election judges 
235.23  is three plus one judge to demonstrate the use of the voting 
235.24  machine or device. 
235.25     Sec. 23.  Minnesota Statutes 2000, section 204B.23, is 
235.26  amended to read: 
235.27     204B.23 [VACANCIES AMONG ELECTION JUDGES.] 
235.28     A vacancy on an election board occurs when any election 
235.29  judge who is a member of that board:  
235.30     (a) Fails to arrive at the polling place within 30 minutes 
235.31  after the time when the polling place is scheduled to open; 
235.32     (b) Becomes unable to perform the duties of the office 
235.33  after assuming those duties; or 
235.34     (c) For any reason fails or refuses to perform the duties 
235.35  of the office as assigned by the ~~chair of the election board~~ 
235.36  head election judge. 
236.1      When a vacancy occurs, the remaining election judges of the 
236.2   precinct shall elect an individual to fill the vacancy subject 
236.3   to the provisions of section 204B.19.  When possible the 
236.4   election judges shall elect individuals who have been trained as 
236.5   election judges pursuant to section 204B.25.  The oath signed by 
236.6   the new election judge shall indicate that the new election 
236.7   judge was elected to fill a vacancy.  The municipal clerk may 
236.8   assign election judges to fill vacancies as they occur. 
236.9      Sec. 24.  Minnesota Statutes 2000, section 204B.27, is 
236.10  amended by adding a subdivision to read: 
236.11     Subd. 11.  [TRANSLATION OF VOTING INSTRUCTIONS.] The 
236.12  secretary of state may develop voting instructions in languages 
236.13  other than English, to be posted and made available in polling 
236.14  places during elections.  The state demographer shall determine 
236.15  and report to the secretary of state the languages that are so 
236.16  common in this state that there is a need for translated voting 
236.17  instructions. 
236.18     Sec. 25.  Minnesota Statutes 2000, section 204B.28, 
236.19  subdivision 1, is amended to read: 
236.20     Subdivision 1.  [MEETING WITH ELECTION OFFICIALS.] At least 
236.21  12 weeks before each regularly scheduled general election, each 
236.22  county auditor shall conduct a meeting with local election 
236.23  officials to review the procedures for the election.  The county 
236.24  auditor may require the ~~chairs of the election boards~~ head 
236.25  election judges in the county to attend this meeting. 
236.26     Sec. 26.  [204B.48] [VOTING EQUIPMENT GRANT ACCOUNT.] 
236.27     Subdivision 1.  [ACCOUNT CREATED.] A voting equipment grant 
236.28  account is created in the state treasury to provide grants to 
236.29  political subdivisions to purchase precinct based optical scan 
236.30  ballot tabulation equipment.  The equipment must permit the 
236.31  voter to verify and correct any errors on the ballot, including 
236.32  both undervotes and overvotes.  Any grants made by the federal 
236.33  government to the state to improve election administration or 
236.34  equipment must be credited to the account.  
236.35     Subd. 2.  [APPLICATION.] The commissioner of administration 
236.36  may make a grant from the account to a political subdivision 
237.1   only after receiving an application from the political 
237.2   subdivision and a recommendation from the secretary of state 
237.3   concerning the application.  The application must contain the 
237.4   following information: 
237.5      (1) the date the application is submitted; 
237.6      (2) the name of the political subdivision; 
237.7      (3) the name and title of the individual who prepared the 
237.8   application; 
237.9      (4) the type of voting system currently used in each 
237.10  precinct in the political subdivision; 
237.11     (5) if the current system is an optical scan system, the 
237.12  date the system was acquired and at what cost; 
237.13     (6) the total number of registered voters, as of the date 
237.14  of the application, in each precinct in the political 
237.15  subdivision; 
237.16     (7) the total amount of the grant requested; 
237.17     (8) the total amount and source of the political 
237.18  subdivision's money to be used to match a grant from the 
237.19  account; 
237.20     (9) the type of voting system to be acquired with the grant 
237.21  money and whether the voting system will permit individuals with 
237.22  disabilities to cast a secret ballot; 
237.23     (10) the proposed schedule for purchasing and implementing 
237.24  the new voting system and the precincts in which the new voting 
237.25  system would be used; 
237.26     (11) the proposed schedule for training election 
237.27  administrators and election judges to operate the new voting 
237.28  system; 
237.29     (12) a proposed plan to educate voters, the media, and the 
237.30  general public concerning the new voting system; 
237.31     (13) the names and contact information for the individuals 
237.32  and offices of the political subdivision responsible for 
237.33  communications and reporting to the commissioner of 
237.34  administration regarding the administration and implementation 
237.35  of the grant by the political subdivision, authorizing the 
237.36  purchase of voting systems, and implementing the training and 
238.1   education plan for the voting system; 
238.2      (14) whether the political subdivision has previously 
238.3   applied for a grant from the account and the disposition of that 
238.4   application; 
238.5      (15) a certified statement by the political subdivision 
238.6   that the grant will be used only to purchase precinct based 
238.7   optical scan ballot tabulation equipment, that the political 
238.8   subdivision will provide a dollar-for-dollar match that will not 
238.9   come from state or federal money, and that the political 
238.10  subdivision has insufficient resources to purchase the voting 
238.11  system without obtaining a grant from the account. 
238.12     The commissioner of administration must forward a copy of 
238.13  the application to the secretary of state. 
238.14     Subd. 3.  [EVALUATION AND APPROVAL.] In evaluating the 
238.15  application, the commissioner of administration may consider 
238.16  only the information set forth in the application and is not 
238.17  subject to chapter 14.  If the commissioner of administration 
238.18  determines that the application has been fully and properly 
238.19  completed, and that there is a sufficient balance in the account 
238.20  to fund the grant, either in whole or in part, the commissioner, 
238.21  after receiving the recommendation of the secretary of state, 
238.22  may approve the application. 
238.23     Subd. 4.  [PAYMENT.] The commissioner of administration may 
238.24  then pay the grant to the political subdivision after certifying 
238.25  that: 
238.26     (1) the grant will be used only to purchase the kind of 
238.27  ballot tabulation equipment prescribed by subdivision 1, which 
238.28  may include equipment that makes it possible for individuals 
238.29  with disabilities to cast a secret ballot; 
238.30     (2) the political subdivision to receive the grant has 
238.31  insufficient resources available to purchase the equipment; and 
238.32     (3) the recipient of the grant will provide a 
238.33  dollar-for-dollar match, which may not come from state or 
238.34  federal money. 
238.35     Sec. 27.  Minnesota Statutes 2000, section 204C.03, 
238.36  subdivision 1, is amended to read: 
239.1      Subdivision 1.  [SCHOOL DISTRICTS; COUNTIES; 
239.2   MUNICIPALITIES; SPECIAL TAXING DISTRICTS.] No special taxing 
239.3   district governing body, school board, county board of 
239.4   commissioners, city council, or town board of supervisors shall 
239.5   conduct a meeting between 6:00 p.m. and 8:00 p.m. on the day 
239.6   that an election is held within the boundaries of the special 
239.7   taxing district, school district, county, city, or town.  As 
239.8   used in this subdivision, "special taxing district" has the 
239.9   meaning given in section 275.066. 
239.10     Sec. 28.  Minnesota Statutes 2000, section 204C.35, is 
239.11  amended to read: 
239.12     204C.35 [~~LEGISLATIVE AND~~ FEDERAL, STATE, AND JUDICIAL 
239.13  RACES.] 
239.14     Subdivision 1.  [AUTOMATIC RECOUNTS.] (a) In a state 
239.15  primary when the difference between the votes cast for the 
239.16  candidates for nomination to a statewide federal office, state 
239.17  constitutional office, statewide judicial office, congressional 
239.18  office, state legislative office, or ~~to a~~ district judicial 
239.19  office ~~is 100 or less, the difference~~: 
239.20     (1) is less than ~~ten~~ one-half of one percent of the total 
239.21  number of votes counted for that nomination; or 
239.22     (2) is ten votes or less and the total number of votes cast 
239.23  for the nomination is 400 votes or less; 
239.24  and the difference determines the nomination, the canvassing 
239.25  board with responsibility for declaring the results for that 
239.26  office shall recount the vote.  
239.27     (b) In a state general election when the difference between 
239.28  the votes of a candidate who would otherwise be declared elected 
239.29  to a statewide federal office, state constitutional office, 
239.30  statewide judicial office, congressional office, state 
239.31  legislative office, or ~~to a~~ district judicial office and the 
239.32  votes of any other candidate for that office: 
239.33     (1) is ~~100 or~~ less than one-half of one percent of the 
239.34  total number of votes counted for that office; or 
239.35     (2) is ten votes or less if the total number of votes cast 
239.36  for the office is 400 votes or less, 
240.1   the canvassing board shall recount the votes. 
240.2      (c) A recount ~~shall~~ must not delay any other part of the 
240.3   canvass.  The results of the recount ~~shall~~ must be certified by 
240.4   the canvassing board as soon as possible.  
240.5      (d) Time for notice of a contest for an office which is 
240.6   recounted pursuant to this section shall begin to run upon 
240.7   certification of the results of the recount by the canvassing 
240.8   board.  
240.9      (e) A losing candidate may waive a recount required 
240.10  pursuant to this section by filing a written notice of waiver 
240.11  with the canvassing board. 
240.12     Subd. 2.  [OPTIONAL RECOUNT.] (a) A losing candidate for 
240.13  nomination or election to a statewide federal office, state 
240.14  constitutional office, statewide judicial office, congressional 
240.15  office, state legislative office, or ~~to a~~ district ~~court~~ 
240.16  judicial office may request a recount in a manner provided in 
240.17  this section at the candidate's own expense when the vote 
240.18  difference is greater than the difference required by this 
240.19  section.  The votes shall be recounted as provided in this 
240.20  section if the candidate files a request during the time for 
240.21  filing notice of contest of the primary or election for which a 
240.22  recount is sought.  
240.23     (b) The requesting candidate shall file with the filing 
240.24  officer a bond, cash, or surety in an amount set by the filing 
240.25  officer for the payment of the recount expenses.  The requesting 
240.26  candidate is responsible for the following expenses:  the 
240.27  compensation of the secretary of state, or designees, and any 
240.28  election judge, municipal clerk, county auditor, administrator, 
240.29  or other personnel who participate in the recount; the costs of 
240.30  computer operation, preparation of ballot counting equipment, 
240.31  necessary supplies and travel related to the recount; the 
240.32  compensation of the appropriate canvassing board and costs of 
240.33  preparing for the canvass of recount results; and any attorney 
240.34  fees incurred in connection with the recount by the governing 
240.35  body responsible for the recount. 
240.36     Sec. 29.  Minnesota Statutes 2000, section 204C.36, 
241.1   subdivision 1, is amended to read: 
241.2      Subdivision 1.  [REQUIRED RECOUNTS.] (a) Except as provided 
241.3   in paragraph (b), a losing candidate for nomination or election 
241.4   to a county, municipal, or school district office may request a 
241.5   recount of the votes cast for the nomination or election to that 
241.6   office if the difference between the vote cast for that 
241.7   candidate and for a winning candidate for nomination or election 
241.8   is~~:~~  
241.9      ~~(a) Five votes or less when the total vote cast for~~ 
241.10  ~~nomination or election to that office is 100 votes or less;~~ 
241.11     ~~(b) Ten votes or less when the total vote cast for~~ 
241.12  ~~nomination or election to that office is more than 100 but not~~ 
241.13  ~~more than 500 votes;~~ 
241.14     ~~(c) Twenty votes or less when the total vote cast for~~ 
241.15  ~~nomination or election to that office is more than 500 but not~~ 
241.16  ~~more than 2,000 votes;~~ 
241.17     ~~(d) One percent of the votes or less when the total vote~~ 
241.18  ~~cast for nomination or election to that office is more than~~ 
241.19  ~~2,000 but less than 10,000 votes; or~~ 
241.20     ~~(e) One hundred votes or less when the total vote cast for~~ 
241.21  ~~nomination or election to that office is 10,000 votes or~~ 
241.22  ~~more.~~ less than one-half of one percent of the total votes 
241.23  counted for that office.  In case of offices where two or more 
241.24  seats are being filled from among all the candidates for the 
241.25  office, the one-half of one percent difference is between the 
241.26  elected candidate with the fewest votes and the candidate with 
241.27  the most votes from among the candidates who were not elected.  
241.28     (b) A losing candidate for nomination or election to a 
241.29  county, municipal, or school district office may request a 
241.30  recount of the votes cast for nomination or election to that 
241.31  office if the difference between the vote cast for that 
241.32  candidate and for a winning candidate for nomination or election 
241.33  is ten votes or less, and the total number of votes cast for the 
241.34  nomination or election of all candidates is no more than 400.  
241.35  In cases of offices where two or more seats are being filled 
241.36  from among all the candidates for the office, the ten vote 
242.1   difference is between the elected candidate with the fewest 
242.2   votes and the candidate with the most votes from among the 
242.3   candidates who were not elected. 
242.4      (c) Candidates for county offices shall file a written 
242.5   request for the recount with the county auditor.  Candidates for 
242.6   municipal or school district offices shall file a written 
242.7   request with the municipal or school district clerk as 
242.8   appropriate.  All requests shall be filed during the time for 
242.9   notice of contest of the primary or election for which a recount 
242.10  is sought.  
242.11     (d) Upon receipt of a request made pursuant to this 
242.12  section, the county auditor shall recount the votes for a county 
242.13  office at the expense of the county, the governing body of the 
242.14  municipality shall recount the votes for a municipal office at 
242.15  the expense of the municipality, and the school board of the 
242.16  school district shall recount the votes for a school district 
242.17  office at the expense of the school district.  
242.18     Sec. 30.  Minnesota Statutes 2000, section 204C.36, 
242.19  subdivision 3, is amended to read: 
242.20     Subd. 3.  [DISCRETIONARY BALLOT QUESTION RECOUNTS.] A 
242.21  recount may be conducted for a ballot question when the 
242.22  difference between the votes for and the votes against the 
242.23  question is less than or equal to the difference provided in 
242.24  subdivision 1~~, clauses (a) to (e)~~.  A recount may be requested 
242.25  by any person eligible to vote on the ballot question.  A 
242.26  written request for a recount must be filed with the filing 
242.27  officer of the county, municipality, or school district placing 
242.28  the question on the ballot and must be accompanied by a petition 
242.29  containing the signatures of 25 voters eligible to vote on the 
242.30  question.  If the difference between the votes for and the votes 
242.31  against the question is greater than the difference provided in 
242.32  subdivision 1, ~~clauses (a) to (e),~~ the person requesting the 
242.33  recount shall also file with the filing officer of the county, 
242.34  municipality, or school district a bond, cash, or surety in an 
242.35  amount set by the appropriate governing body for the payment of 
242.36  recount expenses.  The written request, petition, and any bond, 
243.1   cash, or surety required must be filed during the time for 
243.2   notice of contest for the election for which the recount is 
243.3   requested.  
243.4      Sec. 31.  Minnesota Statutes 2000, section 204D.04, 
243.5   subdivision 2, is amended to read: 
243.6      Subd. 2.  [INSTRUCTIONS TO PRINTER; PRINTER'S BOND.] (a) 
243.7   The official charged with the preparation and distribution of 
243.8   the ballots shall prepare instructions to the printer for 
243.9   rotation of the names of candidates and for layout of the ballot.
243.10     (b) Except as provided in paragraph (c), the instructions 
243.11  shall be approved by the legal advisor of the official before 
243.12  delivery to the printer. 
243.13     (c) The legal advisor of a town official is only required 
243.14  to approve instructions regarding the rotation of the names of 
243.15  candidates on the ballot. 
243.16     (d) Before a contract exceeding $1,000 is awarded for 
243.17  printing ballots, the printer shall furnish a sufficient bond, 
243.18  letter of credit, or certified check, acceptable to the official 
243.19  responsible for printing the ballots, conditioned on printing 
243.20  the ballots in conformity with the Minnesota Election Law and 
243.21  the instructions delivered.  The official responsible for 
243.22  printing the ballots shall set the amount of the bond, letter of 
243.23  credit, or certified check in an amount equal to the value of 
243.24  the purchase.  
243.25     Sec. 32.  Minnesota Statutes 2000, section 204D.09, is 
243.26  amended to read: 
243.27     204D.09 [EXAMPLE BALLOTS; SAMPLE PRIMARY BALLOTS.] 
243.28     Subdivision 1.  [EXAMPLE BALLOT.] (a) No later than June 1 
243.29  of each year, the secretary of state shall supply each auditor 
243.30  with a copy of an example ballot.  The example ballot must 
243.31  illustrate the format required for the ballots used in the 
243.32  primary and general elections that year. 
243.33     (b) The county auditor shall distribute copies of the 
243.34  example ballot to municipal and school district clerks in 
243.35  municipalities and school districts holding elections that 
243.36  year.  The official ballot must conform in all respects to the 
244.1   example ballot. 
244.2      Subd. 2.  [SAMPLE BALLOT.] At least two weeks before the 
244.3   state primary the county auditor shall prepare a sample state 
244.4   partisan primary ballot and a sample state and county 
244.5   nonpartisan primary ballot for public inspection.  The names of 
244.6   all of the candidates to be voted for in the county shall be 
244.7   placed on the sample ballots, with the names of the candidates 
244.8   for each office arranged alphabetically according to the 
244.9   surname.  Only one sample state partisan primary ballot and one 
244.10  sample state and county nonpartisan ballot shall be prepared for 
244.11  any county.  The county auditor shall post the sample ballots in 
244.12  a conspicuous place in the auditor's office and shall cause them 
244.13  to be published at least one week before the state primary in at 
244.14  least one newspaper of general circulation in the county. 
244.15     Sec. 33.  Minnesota Statutes 2000, section 204D.11, 
244.16  subdivision 4, is amended to read: 
244.17     Subd. 4.  [SPECIAL FEDERAL WHITE BALLOT.] (a) The names of 
244.18  all candidates for the offices of president and vice-president 
244.19  of the United States and senator and representative in Congress 
244.20  shall be placed on a ballot printed on white paper which shall 
244.21  be known as the "special federal white ballot." 
244.22     (b) This ballot shall be prepared by the county auditor in 
244.23  the same manner as the white ballot and shall be subject to the 
244.24  rules adopted by the secretary of state pursuant to subdivision 
244.25  1.  This ballot must be prepared and furnished in accordance 
244.26  with the federal Uniformed and Overseas Citizens Absentee Voting 
244.27  Act, United States Code, title 42, section 1973ff. 
244.28     (c) The special federal white ballot shall be the only 
244.29  ballot sent to citizens of the United States who are eligible to 
244.30  vote by absentee ballot for federal candidates in Minnesota. 
244.31     Sec. 34.  Minnesota Statutes 2000, section 204D.24, 
244.32  subdivision 2, is amended to read: 
244.33     Subd. 2.  [VOTER REGISTRATION.] An individual may register 
244.34  to vote at a special primary or special election at any time 
244.35  before the day that the polling place rosters for the special 
244.36  primary or special election are prepared by the secretary of 
245.1   state.  The secretary of state shall provide the county auditors 
245.2   with notice of this date at least seven days before the printing 
245.3   of the rosters.  This subdivision does not apply to a special 
245.4   election held on the same day as the ~~presidential primary,~~ state 
245.5   primary, state general election, or the regularly scheduled 
245.6   primary or general election of a municipality, school district, 
245.7   or special district.  
245.8      Sec. 35.  Minnesota Statutes 2000, section 205.13, 
245.9   subdivision 1a, is amended to read: 
245.10     Subd. 1a.  [FILING PERIOD.] ~~An affidavit of candidacy for a~~ 
245.11  ~~town office to be elected in March must be filed not more than~~ 
245.12  ~~eight weeks nor less than six weeks before the town election.~~  
245.13  In municipalities nominating candidates at a municipal primary, 
245.14  an affidavit of candidacy for a city office or town office voted 
245.15  on in November must be filed not more than 70 days nor less than 
245.16  56 days before the first Tuesday after the second Monday in 
245.17  September preceding the municipal general election.  In all 
245.18  other municipalities, an affidavit of candidacy must be filed 
245.19  not more than 70 days and not less than 56 days before the 
245.20  municipal general election. 
245.21     Sec. 36.  Minnesota Statutes 2000, section 205.17, is 
245.22  amended by adding a subdivision to read: 
245.23     Subd. 7.  [EXAMPLE BALLOT.] No later than 30 days before 
245.24  absentee ballots must be prepared and delivered under section 
245.25  204B.35 for use in a town general election conducted in March, 
245.26  the secretary of state shall supply each town clerk in a town 
245.27  conducting a March general election with a copy of an example 
245.28  ballot.  The example ballot must illustrate the format required 
245.29  for the ballots used in the general election that year. 
245.30     Sec. 37.  Minnesota Statutes 2000, section 205.185, 
245.31  subdivision 3, is amended to read: 
245.32     Subd. 3.  [CANVASS OF RETURNS, CERTIFICATE OF ELECTION, 
245.33  BALLOTS, DISPOSITION.] (a) Within seven days after an election, 
245.34  the governing body of a city conducting any election or the 
245.35  governing body of a town conducting the general election in 
245.36  November shall canvass the returns and declare the results of 
246.1   the election.  The governing body of a town conducting the 
246.2   general election in March shall canvass the returns and declare 
246.3   the results of the election within two days after an election.  
246.4      (b) After the time for contesting elections has passed, the 
246.5   municipal clerk shall issue a certificate of election to each 
246.6   successful candidate.  In case of a contest, the certificate 
246.7   shall not be issued until the outcome of the contest has been 
246.8   determined by the proper court.  
246.9      (c) In case of a tie vote, the governing body shall 
246.10  determine the result by lot. The clerk shall certify the results 
246.11  of the election to the county auditor, and the clerk shall be 
246.12  the final custodian of the ballots and the returns of the 
246.13  election. 
246.14     Sec. 38.  Minnesota Statutes 2000, section 206.81, is 
246.15  amended to read: 
246.16     206.81 [ELECTRONIC VOTING SYSTEMS; EXPERIMENTAL USE.] 
246.17     (a) The secretary of state may license an electronic voting 
246.18  system for experimental use at an election prior to its approval 
246.19  for general use. 
246.20     (b) The secretary of state must license one or more 
246.21  touch-sensitive direct recording electronic voting systems for 
246.22  experimental use at an election before their approval for 
246.23  general use and may impose restrictions on their use.  At least 
246.24  one voting system licensed under this paragraph must permit 
246.25  sighted persons to vote and at least one system must permit a 
246.26  blind or visually impaired voter to cast a ballot independently 
246.27  and privately. 
246.28     (c) Experimental use must be observed by the secretary of 
246.29  state or the secretary's designee and the results observed must 
246.30  be considered at any subsequent proceedings for approval for 
246.31  general use. 
246.32     (d) The secretary of state may adopt rules consistent with 
246.33  sections 206.55 to 206.90 relating to experimental use.  The 
246.34  extent of experimental use must be determined by the secretary 
246.35  of state. 
246.36     Sec. 39.  Minnesota Statutes 2000, section 211A.02, 
247.1   subdivision 4, is amended to read: 
247.2      Subd. 4.  [CONGRESSIONAL CANDIDATES.] Candidates for 
247.3   election to the United States House of Representatives or Senate 
247.4   and any political committees raising money and making 
247.5   disbursements exclusively on behalf of any one of those 
247.6   candidates may file copies of their financial disclosures 
247.7   required by federal law in lieu of the financial statement 
247.8   required by this section.  A candidate or committee whose report 
247.9   is published on the Federal Election Commission Web site has 
247.10  complied with the filing requirements of this section. 
247.11     Sec. 40.  [211B.205] [PARTICIPATION IN PUBLIC PARADES.] 
247.12     If a public parade allows candidates, a candidate must be 
247.13  allowed to participate for a fee that is not greater than the 
247.14  amount that is charged to other units participating in the 
247.15  parade. 
247.16     Sec. 41.  Minnesota Statutes 2000, section 358.10, is 
247.17  amended to read: 
247.18     358.10 [OFFICIALS MAY ADMINISTER, WHEN.] 
247.19     (a) All persons holding office under any law of this state, 
247.20  or under the charter or ordinances of any municipal corporation 
247.21  thereof, including judges and clerks of election, and all 
247.22  committee members, commissioners, trustees, referees, 
247.23  appraisers, assessors, and all others authorized or required by 
247.24  law to act or report upon any matter of fact, ~~shall~~ have the 
247.25  power to administer ~~such~~ oaths ~~as~~ they ~~may~~ deem necessary to the 
247.26  proper discharge of their respective duties.  
247.27     (b) Any employee of the secretary of state designated by 
247.28  the secretary of state has the power to administer oaths to an 
247.29  individual who wishes to file with the secretary of state an 
247.30  affidavit of candidacy, nominating petition, declaration of 
247.31  intent to be a write-in candidate, or any other document 
247.32  relating to the conduct of elections. 
247.33     Sec. 42.  Minnesota Statutes 2000, section 367.03, 
247.34  subdivision 6, is amended to read: 
247.35     Subd. 6.  [VACANCIES.] (a) When a vacancy occurs in a town 
247.36  office, the town board shall fill the vacancy by appointment.  
248.1   Except as provided in paragraph (b), the person appointed shall 
248.2   hold office until the next annual town election, when a 
248.3   successor shall be elected for the unexpired term.  
248.4      (b) When a vacancy occurs in a town office: 
248.5      (1) with more than one year remaining in the term; and 
248.6      (2) on or after the 14th day before the first day to file 
248.7   an affidavit of candidacy for the town election; 
248.8   the vacancy must be filled by appointment.  The person appointed 
248.9   serves until the next annual town election following the 
248.10  election for which affidavits of candidacy are to be filed, when 
248.11  a successor shall be elected for the unexpired term. 
248.12     (c) A vacancy in the office of supervisor ~~shall~~ must be 
248.13  filled by an appointment committee comprised of the remaining 
248.14  supervisors and the town clerk ~~until the next annual town~~ 
248.15  ~~election, when a successor shall be elected for the unexpired~~ 
248.16  ~~term~~.  
248.17     (d) Any person appointed to fill the vacancy in the office 
248.18  of supervisor must, upon assuming the office, be an eligible 
248.19  voter, be 21 years of age, and have resided in the town for at 
248.20  least 30 days.  
248.21     (e) When, because of a vacancy, more than one supervisor is 
248.22  to be chosen at the same election, candidates for the offices of 
248.23  supervisor shall file for one of the specific terms being filled.
248.24     (f) Law enforcement vacancies ~~shall~~ must be filled by 
248.25  appointment by the town board. 
248.26     Sec. 43.  [APPLICATION OF NEW DEFINITIONS OF MAJOR AND 
248.27  MINOR POLITICAL PARTY.] 
248.28     Notwithstanding the amendments in this article to Minnesota 
248.29  Statutes, section 200.02, subdivisions 7 and 23: 
248.30     (1) a political party that qualified as a major political 
248.31  party as a result of the votes cast for candidates of that party 
248.32  on November 7, 2000, remains a major political party through 
248.33  December 31, 2002, and may retain its status after that date by 
248.34  complying with Minnesota Statutes, section 200.02, subdivision 
248.35  7; 
248.36     (2) a major political party that ceased to qualify as a 
249.1   major political party as a result of votes cast for candidates 
249.2   of that party on November 7, 2000, does not become a major 
249.3   political party as a result of this article until it qualifies 
249.4   at a subsequent state general election; 
249.5      (3) a minor political party that ceased to qualify as a 
249.6   minor political party under Minnesota Statutes, section 200.02, 
249.7   subdivision 23, or as a political party under Minnesota 
249.8   Statutes, section 200.02, subdivision 6, as a result of the 
249.9   votes cast for candidates of that party on November 7, 2000, 
249.10  does not become a minor political party or a political party as 
249.11  a result of this article until it qualifies at a subsequent 
249.12  state general election. 
249.13     Sec. 44.  [REPEALER.] 
249.14     (a) Minnesota Statutes 2000, sections 204B.06, subdivision 
249.15  1a, and 204C.15, subdivision 2a, are repealed. 
249.16     (b) Minnesota Rules, part 8250.1400, is repealed. 
249.17     Sec. 45.  [EFFECTIVE DATE.] 
249.18     Sections 1 to 25 and 27 to 44 are effective January 1, 2002.
249.19  Section 26 is effective July 1, 2001.