3rd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
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 related to 1.5 state government operations; requiring certain 1.6 contractor bonding; requiring licensure of certain 1.7 gambling equipment salespersons; modifying fee 1.8 provisions and providing for disposition of various 1.9 fees and other revenue; modifying provisions of 1.10 various state boards and commissions; modifying 1.11 provisions relating to state debt collection; 1.12 authorizing rulemaking; providing for a license fee 1.13 for fireworks retailers; requiring studies; modifying 1.14 lawful gambling provisions; providing for early 1.15 retirement incentives and other employment provisions 1.16 for public employees; modifying public employee 1.17 retirement provisions; modifying various firefighters 1.18 relief association provisions; amending Minnesota 1.19 Statutes 2002, sections 3.885, subdivision 1; 3.971, 1.20 subdivision 2; 6.48; 6.49; 6.54; 6.55; 6.64; 6.65; 1.21 6.66; 6.67; 6.68, subdivision 1; 6.70; 6.71; 6.74; 1.22 8.06; 10A.02, by adding subdivisions; 10A.04, 1.23 subdivisions 2, 4, by adding a subdivision; 10A.09, 1.24 subdivision 6, by adding a subdivision; 10A.31, 1.25 subdivision 4; 11A.17, subdivision 2; 14.091; 14.48, 1.26 by adding a subdivision; 15.50, subdivision 1, as 1.27 amended; 16A.102, subdivision 1; 16A.11, subdivision 1.28 3; 16A.17, by adding a subdivision; 16A.40; 16A.501; 1.29 16A.642, subdivision 1; 16B.054; 16B.24, subdivisions 1.30 1, 5; 16B.33, subdivision 3; 16B.35, subdivision 1; 1.31 16B.465, subdivisions 1a, 7; 16B.47; 16B.48, 1.32 subdivision 2; 16B.49; 16B.58, by adding a 1.33 subdivision; 16B.61, subdivision 1a; 16B.62, 1.34 subdivision 1; 16C.05, subdivision 2; 16C.08, 1.35 subdivisions 2, 3, 4, by adding a subdivision; 16C.09; 1.36 16C.10, subdivisions 1, 5, 7; 16C.15; 16C.16, 1.37 subdivision 7; 16D.08, subdivision 2; 16D.10; 16E.01, 1.38 subdivision 3; 16E.07, subdivision 9; 16E.09, 1.39 subdivision 1; 43A.047; 69.772, subdivision 2; 1.40 115A.929; 116J.8771; 122A.46, subdivision 9; 179A.03, 1.41 subdivision 7; 192.501, subdivision 2; 197.608; 1.42 240.03; 240.10; 240.15, subdivision 6; 240.155, 1.43 subdivision 1; 240A.03, subdivisions 10, 15; 240A.04; 1.44 240A.06, subdivision 1; 256B.435, subdivision 2a; 1.45 268.186; 270.052; 270.44; 270A.07, subdivision 1; 1.46 306.95; 327A.01, subdivision 2; 349.12, subdivision 2.1 25, by adding a subdivision; 349.151, subdivisions 4, 2.2 4b; 349.155, subdivision 3; 349.16, subdivision 6; 2.3 349.161, subdivisions 1, 4, 5; 349.162, subdivision 1; 2.4 349.163, subdivisions 2, 6; 349.164, subdivision 4; 2.5 349.165, subdivision 3; 349.166, subdivisions 1, 2; 2.6 349A.08, subdivision 5; 352.96, subdivision 2; 2.7 352D.04, by adding a subdivision; 353.01, subdivisions 2.8 2d, 6; 353D.01, subdivision 2; 353D.02, by adding a 2.9 subdivision; 354.094, subdivision 1; 356.55, 2.10 subdivision 7; 356.611, subdivision 1; 356B.05; 2.11 383B.49; 383B.493; 423C.03, subdivision 3; 423C.08; 2.12 424A.02, subdivision 3; 458D.17, subdivision 5; 2.13 471.696; 471.999; 474A.21; 477A.014, subdivision 4; 2.14 Laws 1978, chapter 685, section 1, as amended; Laws 2.15 1978, chapter 685, section 2; Laws 1978, chapter 685, 2.16 section 3; Laws 1978, chapter 685, section 6; Laws 2.17 1998, chapter 366, section 80, as amended; Laws 1999, 2.18 chapter 222, article 16, section 16, as amended; Laws 2.19 2000, chapter 461, article 4, section 4; Laws 2000, 2.20 chapter 461, article 12, section 20, as amended; Laws 2.21 2000, chapter 461, article 19, section 6; Laws 2001 2.22 First Special Session chapter 10, article 6, section 2.23 21, as amended; proposing coding for new law in 2.24 Minnesota Statutes, chapters 3A; 6; 10A; 15A; 16C; 2.25 43A; 326; 349; repealing Minnesota Statutes 2002, 2.26 sections 3.305, subdivision 5; 3.9222; 3.971, 2.27 subdivision 8; 3A.11; 4A.055; 6.77; 12.221, 2.28 subdivision 5; 16A.151, subdivision 5; 16A.87; 16B.50; 2.29 16C.07; 16C.18, subdivision 1; 43A.04, subdivision 10; 2.30 43A.17, subdivision 9; 62J.07; 149A.97, subdivision 8; 2.31 163.10; 240A.08; 306.97; 354.541; 354A.109; Laws 1978, 2.32 chapter 685, section 5; Laws 2000, chapter 461, 2.33 article 19, section 6; Minnesota Rules, part 1950.1070. 2.34 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.35 ARTICLE 1 2.36 APPROPRIATIONS 2.37 Section 1. [STATE GOVERNMENT APPROPRIATIONS.] 2.38 The sums shown in the columns marked "APPROPRIATIONS" are 2.39 appropriated from the general fund, or another named fund, to 2.40 the agencies and for the purposes specified in this act, to be 2.41 available for the fiscal years indicated for each purpose. The 2.42 figures "2004" and "2005," where used in this act, mean that the 2.43 appropriation or appropriations listed under them are available 2.44 for the year ending June 30, 2004, or June 30, 2005, 2.45 respectively. The term "first year" means the fiscal year 2.46 ending June 30, 2004, and the term "second year" means the 2.47 fiscal year ending June 30, 2005. 2.48 SUMMARY BY FUND 2.49 2004 2005 TOTAL 2.50 General $ 261,933,000 $ 258,258,000 $ 520,191,000 2.51 Health Care 2.52 Access 1,782,000 1,782,000 3,564,000 3.1 State Government 3.2 Special Revenue 24,653,000 28,033,000 52,686,000 3.3 Environmental 520,000 436,000 956,000 3.4 Remediation 484,000 484,000 968,000 3.5 Solid Waste 672,000 672,000 1,344,000 3.6 Special Revenue 2,947,000 2,947,000 5,894,000 3.7 Highway User Tax 3.8 Distribution 2,097,000 2,097,000 4,194,000 3.9 Workers' 3.10 Compensation 7,286,000 7,349,000 14,635,000 3.11 TOTAL $ 301,702,000 $ 301,386,000 $ 603,088,000 3.12 APPROPRIATIONS 3.13 Available for the Year 3.14 Ending June 30 3.15 2004 2005 3.16 Sec. 2. LEGISLATURE 3.17 Subdivision 1. Total 3.18 Appropriation $ 56,426,000 $ 56,427,000 3.19 Summary by Fund 3.20 General 56,298,000 56,299,000 3.21 Health Care Access 128,000 128,000 3.22 The amounts that may be spent from this 3.23 appropriation for each program are 3.24 specified in the following subdivisions. 3.25 Subd. 2. Senate 19,107,000 19,107,000 3.26 Subd. 3. House of 3.27 Representatives 26,135,000 26,136,000 3.28 Subd. 4. Limit on Expenses 3.29 Notwithstanding any law to the 3.30 contrary, during the biennium ending 3.31 June 30, 2005: 3.32 (1) the house of representatives and 3.33 the senate may not pay per diem living 3.34 expenses to a member in an amount more 3.35 than $56; and 3.36 (2) the house of representatives and 3.37 the senate may not reimburse a member 3.38 for monthly housing expenses incurred 3.39 for more than six months in a calendar 3.40 year. 3.41 Subd. 5. Legislative 3.42 Coordinating Commission 11,184,000 11,184,000 3.43 Summary by Fund 3.44 General 11,056,000 11,056,000 3.45 Health Care Access 128,000 128,000 3.46 During the biennium ending June 30, 4.1 2005, the legislative coordinating 4.2 commission, the office of the 4.3 legislative auditor, and the office of 4.4 the revisor of statutes are not subject 4.5 to the limitations in uses of funds 4.6 provided under Minnesota Statutes, 4.7 section 16A.281. 4.8 During the biennium ending June 30, 4.9 2005, a legislative commission or 4.10 subcommittee of the legislative 4.11 coordinating commission may by 4.12 resolution adopt per diem payments for 4.13 members attending commission meetings 4.14 that are less than the payments 4.15 permitted by rules of the house of 4.16 representatives and the senate. 4.17 Sec. 3. GOVERNOR AND 4.18 LIEUTENANT GOVERNOR 3,586,000 3,586,000 4.19 This appropriation is to fund the 4.20 office of the governor and lieutenant 4.21 governor. 4.22 $19,000 the first year and $19,000 the 4.23 second year are for necessary expenses 4.24 in the normal performance of the 4.25 governor's and lieutenant governor's 4.26 duties for which no other reimbursement 4.27 is provided. 4.28 Sec. 4. ATTORNEY GENERAL 21,816,000 21,795,000 4.29 Summary by Fund 4.30 General 20,059,000 20,059,000 4.31 State Government 4.32 Special Revenue 1,612,000 1,591,000 4.33 Environmental 145,000 145,000 4.34 Remediation 484,000 484,000 4.35 Sec. 5. STATE AUDITOR 8,376,000 8,376,000 4.36 Sec. 6. SECRETARY OF STATE 5,912,000 6,032,000 4.37 Sec. 7. CAMPAIGN FINANCE AND 4.38 PUBLIC DISCLOSURE BOARD 712,000 712,000 4.39 Sec. 8. INVESTMENT BOARD 2,167,000 2,167,000 4.40 Sec. 9. ADMINISTRATIVE 4.41 HEARINGS 7,186,000 7,249,000 4.42 This appropriation is from the workers' 4.43 compensation fund. 4.44 Fee rates charged during fiscal years 4.45 2004 and 2005 by the Administrative Law 4.46 Division of the Office of 4.47 Administrative Hearings must be reduced 4.48 by ten percent from fiscal year 2003 4.49 levels. 4.50 Sec. 10. OFFICE OF STRATEGIC 4.51 AND LONG-RANGE PLANNING 3,264,000 3,264,000 4.52 $100,000 the first year and $100,000 5.1 the second year are for a grant to the 5.2 Northern Counties Land Use Coordinating 5.3 Board for purposes of the pilot project 5.4 established in Laws 2002, chapter 373, 5.5 section 33. The pilot project is 5.6 extended until June 30, 2005. 5.7 Sec. 11. ADMINISTRATION 5.8 Subdivision 1. Total 5.9 Appropriation 44,553,000 47,454,000 5.10 Summary by Fund 5.11 General 21,912,000 21,412,000 5.12 State Government 5.13 Special Revenue 22,641,000 26,042,000 5.14 The amounts that may be spent from this 5.15 appropriation for each program are 5.16 specified in the following subdivisions. 5.17 Subd. 2. Operations Management 5.18 2,669,000 2,669,000 5.19 Subd. 3. Office of Technology 5.20 2,479,000 2,479,000 5.21 Subd. 4. Intertechnologies 5.22 Group 5.23 22,641,000 26,042,000 5.24 This appropriation is from the state 5.25 government special revenue fund for 5.26 recurring costs of 911 emergency 5.27 telephone service. 5.28 Subd. 5. Facilities 5.29 Management 5.30 11,803,000 11,303,000 5.31 $7,888,000 the first year and 5.32 $7,888,000 the second year are for 5.33 office space costs of the legislature 5.34 and veterans organizations, for 5.35 ceremonial space, and for statutorily 5.36 free space. 5.37 $500,000 the first year is for onetime 5.38 funding of agency relocation expenses. 5.39 $262,000 the first year and $262,000 5.40 the second year are for administration 5.41 of the Capitol Area Architectural and 5.42 Planning Board. 5.43 $1,225,000 in the first year and 5.44 $1,225,000 in the second year of the 5.45 balance in the facility repair and 5.46 replacement account in the state 5.47 government special revenue fund is 5.48 canceled to the general fund. This 5.49 amount is in addition to amounts 5.50 transferred under Minnesota Statutes, 5.51 section 16B.24, subdivision 5. 6.1 Subd. 6. Management 6.2 Services 6.3 2,830,000 2,830,000 6.4 $196,000 the first year and $196,000 6.5 the second year are for the office of 6.6 the state archaeologist. 6.7 $74,000 the first year and $74,000 the 6.8 second year are for the developmental 6.9 disabilities council. 6.10 Subd. 7. Public Broadcasting 6.11 2,131,000 2,131,000 6.12 $1,378,000 the first year and 6.13 $1,378,000 the second year are for 6.14 public television. 6.15 $423,000 the first year and $423,000 6.16 the second year are for grants and 6.17 contracts with the senate and house of 6.18 representatives for public information 6.19 television, Internet, Intranet, and 6.20 other transmission of legislative 6.21 activities. At least one-half must go 6.22 for programming to be broadcast and 6.23 transmitted to rural Minnesota. 6.24 $17,000 the first year and $17,000 the 6.25 second year are for grants to the Twin 6.26 Cities regional cable channel. 6.27 $313,000 the first year and $313,000 6.28 the second year are for grants to 6.29 public educational radio stations 6.30 affiliated with the Association of 6.31 Minnesota Public Educational Radio 6.32 Stations. 6.33 Sec. 12. FINANCE 6.34 Subdivision 1. Total 6.35 Appropriation 15,216,000 15,216,000 6.36 The amounts that may be spent from this 6.37 appropriation for each program are 6.38 specified in the following subdivisions. 6.39 Subd. 2. State Financial Management 6.40 8,711,000 8,711,000 6.41 Subd. 3. Information and 6.42 Management Services 6.43 6,505,000 6,505,000 6.44 Sec. 13. EMPLOYEE RELATIONS 6.45 Subdivision 1. Total 6.46 Appropriation 6,118,000 6,118,000 6.47 The amounts that may be spent from this 6.48 appropriation for each program are 6.49 specified in the following subdivisions. 6.50 Subd. 2. Employee Insurance 7.1 63,000 63,000 7.2 Subd. 3. Human Resources Management 7.3 6,055,000 6,055,000 7.4 Sec. 14. REVENUE 7.5 Subdivision 1. Total 7.6 Appropriation 90,942,000 92,658,000 7.7 Summary by Fund 7.8 General 86,816,000 88,616,000 7.9 Health Care Access 1,654,000 1,654,000 7.10 Highway User 7.11 Tax Distribution 2,097,000 2,097,000 7.12 Environmental 375,000 291,000 7.13 The amounts that may be spent from this 7.14 appropriation for each program are 7.15 specified in the following subdivisions. 7.16 Subd. 2. Tax System Management 7.17 77,038,000 78,254,000 7.18 Summary by Fund 7.19 General 72,912,000 74,212,000 7.20 Health Care Access 1,654,000 1,654,000 7.21 Highway User 7.22 Tax Distribution 2,097,000 2,097,000 7.23 Environmental 375,000 291,000 7.24 $938,000 the first year and $2,238,000 7.25 the second year are for additional 7.26 activities to identify and collect tax 7.27 liabilities from individuals and 7.28 businesses that currently do not pay 7.29 all taxes owed. This initiative is 7.30 expected to result in new general fund 7.31 revenues of $32,400,000 for the 7.32 biennium ending June 30, 2005. 7.33 The department must report to the 7.34 chairs of the house ways and means and 7.35 senate finance committees by March 1, 7.36 2004, and January 15, 2005, on the 7.37 following performance indicators: 7.38 (1) the number of corporations 7.39 noncompliant with the corporate tax 7.40 system each year and the percentage and 7.41 dollar amounts of valid tax liabilities 7.42 collected; 7.43 (2) the number of businesses 7.44 noncompliant with the sales and use tax 7.45 system and the percentage and dollar 7.46 amounts of the valid tax liabilities 7.47 collected; and 7.48 (3) the number of individual 7.49 noncompliant cases resolved and the 8.1 percentage and dollar amounts of valid 8.2 tax liabilities collected. 8.3 The reports must also identify base 8.4 level expenditures and staff positions 8.5 related to compliance and audit 8.6 activities, including baseline 8.7 information as of January 1, 2002. The 8.8 information must be provided at the 8.9 budget activity level. 8.10 Subd. 3. Accounts Receivable 8.11 Management 8.12 13,904,000 14,404,000 8.13 $862,000 the first year and $1,362,000 8.14 the second year are for additional 8.15 activities to identify and collect tax 8.16 liabilities from individuals and 8.17 businesses that currently do not pay 8.18 all taxes owed. 8.19 Sec. 15. MILITARY AFFAIRS 8.20 Subdivision 1. Total 8.21 Appropriation 12,279,000 12,279,000 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. Maintenance of Training Facilities 8.26 5,590,000 5,590,000 8.27 Subd. 3. General Support 8.28 1,757,000 1,757,000 8.29 Subd. 4. Enlistment Incentives 8.30 4,857,000 4,857,000 8.31 If appropriations for either year of 8.32 the biennium are insufficient, the 8.33 appropriation from the other year is 8.34 available. The appropriations for 8.35 enlistment incentives are available 8.36 until expended. 8.37 Subd. 5. Emergency Services 8.38 75,000 75,000 8.39 These appropriations are for expenses 8.40 of military forces ordered to active 8.41 duty under Minnesota Statutes, chapter 8.42 192. If the appropriation for either 8.43 year is insufficient, the appropriation 8.44 for the other year is available for it. 8.45 Sec. 16. VETERANS AFFAIRS 3,988,000 3,988,000 8.46 Sec. 17. VETERANS OF FOREIGN 8.47 WARS 55,000 55,000 8.48 For carrying out the provisions of Laws 8.49 1945, chapter 455. 8.50 Sec. 18. MILITARY ORDER OF 9.1 THE PURPLE HEART 20,000 20,000 9.2 Sec. 19. DISABLED AMERICAN 9.3 VETERANS 13,000 13,000 9.4 For carrying out the provisions of Laws 9.5 1941, chapter 425. 9.6 Sec. 20. GAMBLING CONTROL 2,728,000 2,526,000 9.7 Summary by Fund 9.8 General 202,000 -0- 9.9 Special Revenue 2,526,000 2,526,000 9.10 The general fund appropriation in 9.11 fiscal year 2004 is intended to assist 9.12 with the transition to fee-based 9.13 funding. The commissioner of finance 9.14 must approve the use of this onetime 9.15 appropriation and may require that it 9.16 be reimbursed to the general fund if 9.17 sufficient resources are available in 9.18 the special revenue fund. 9.19 The special revenue fund appropriation 9.20 is made from the lawful gambling 9.21 regulation account. 9.22 Sec. 21. RACING COMMISSION 525,000 421,000 9.23 Summary by Fund 9.24 General 104,000 -0- 9.25 Special Revenue 421,000 421,000 9.26 The general fund appropriation in 9.27 fiscal year 2004 is intended to assist 9.28 with the transition to fee-based 9.29 funding. The commissioner of finance 9.30 must approve the use of this onetime 9.31 appropriation and may require that it 9.32 be reimbursed to the general fund if 9.33 sufficient resources are available in 9.34 the special revenue fund. 9.35 The special revenue fund appropriation 9.36 is made from the racing and card 9.37 playing regulation account. 9.38 Sec. 22. TORT CLAIMS 161,000 161,000 9.39 To be spent by the commissioner of 9.40 finance. 9.41 If the appropriation for either year is 9.42 insufficient, the appropriation for the 9.43 other year is available for it. 9.44 Sec. 23. MINNESOTA STATE 9.45 RETIREMENT SYSTEM 2,518,000 2,727,000 9.46 The amounts estimated to be needed for 9.47 each program are as follows: 9.48 (a) Legislators 9.49 2,150,000 2,300,000 10.1 (b) Constitutional Officers 10.2 368,000 427,000 10.3 Sec. 24. MINNEAPOLIS EMPLOYEES 10.4 RETIREMENT FUND 6,632,000 6,632,000 10.5 Sec. 25. AMATEUR SPORTS 10.6 COMMISSION 525,000 525,000 10.7 The appropriations in this section may 10.8 only be spent up to the amount of 10.9 offsetting fee revenue generated by the 10.10 commission under Minnesota Statutes, 10.11 section 240A.03. 10.12 Sec. 26. GENERAL CONTINGENT 10.13 ACCOUNTS 5,500,000 500,000 10.14 Summary by Fund 10.15 General 5,000,000 -0- 10.16 State Government 10.17 Special Revenue 400,000 400,000 10.18 Workers' 10.19 Compensation 100,000 100,000 10.20 The appropriations in this section may 10.21 only be spent with the approval of the 10.22 governor in accordance with the rules 10.23 of the legislative advisory commission 10.24 pursuant to Minnesota Statutes, section 10.25 3.30. 10.26 If an appropriation in this section for 10.27 either year is insufficient, the 10.28 appropriation for the other year is 10.29 available for it. 10.30 Sec. 27. [GOVERNMENT EFFICIENCIES.] 10.31 Subdivision 1. [TELECOMMUNICATION DEVICES.] The 10.32 commissioner of administration, in consultation with heads of 10.33 other executive agencies, must issue policies to reduce 10.34 telecommunication device usage and expenditures by executive 10.35 agencies other than the Minnesota state colleges and 10.36 universities. 10.37 Subd. 2. [VEHICLES.] (a) The commissioner of 10.38 administration, in consultation with heads of other executive 10.39 agencies, must issue policies to reduce ownership and use of 10.40 passenger vehicles and light duty trucks by executive agencies 10.41 other than the Minnesota state colleges and universities. 10.42 (b) The commissioner may sell vehicles owned by the state 10.43 motor pool and may order the sale of passenger vehicles and 10.44 light duty trucks owned by other executive agencies other than 11.1 the Minnesota state colleges and universities. The net proceeds 11.2 of these sales must be deposited in the general fund, unless 11.3 provided otherwise by the commissioner of finance. 11.4 Subd. 3. [TRANSFERS.] The commissioner of finance may 11.5 authorize the transfer to and deposit in the general fund of 11.6 money saved under subdivisions 1 and 2 from funds other than the 11.7 general fund. 11.8 Subd. 4. [SAVINGS.] (a) It is anticipated that the 11.9 efficiencies and deposits under subdivisions 1 to 3 will result 11.10 in general fund savings or revenues of at least $10,000,000 11.11 during the biennium ending June 30, 2005. General fund savings 11.12 and revenues that are achieved through actions taken under 11.13 section 28 may be applied to the savings requirements estimated 11.14 to be achieved under this section. The commissioner of finance, 11.15 in consultation with the commissioner of administration, must 11.16 reduce general fund appropriations to executive agencies other 11.17 than the Minnesota state colleges and universities by the amount 11.18 of savings estimated to be achieved under this section. 11.19 (b) If the commissioner of finance, in consultation with 11.20 the commissioner of administration, estimates that the 11.21 efficiencies and deposits achieved under this section will 11.22 result in general fund savings and revenues totaling less than 11.23 $10,000,000 during the biennium ending June 30, 2005, the 11.24 commissioner of finance must report to the legislature by 11.25 January 15, 2004, with proposed allocations of the amount of the 11.26 difference as reductions to general fund operating budgets of 11.27 executive agencies other than the Minnesota state colleges and 11.28 universities for fiscal year 2005. The commissioner must 11.29 implement the proposed fiscal year 2005 executive agency 11.30 operating budget reductions unless the 2004 legislature enacts a 11.31 law providing otherwise. 11.32 Sec. 28. [PURCHASING SAVINGS.] 11.33 Subdivision 1. [POLICIES AND PROCEDURES.] The commissioner 11.34 of administration, in consultation with heads of other executive 11.35 agencies, must implement policies and procedures to reduce 11.36 expenditures on purchases of goods and services by executive 12.1 agencies other than the Minnesota state colleges and 12.2 universities. These policies and procedures may include 12.3 increased use of reverse auctions and other electronic 12.4 purchasing initiatives and use of authority under Minnesota 12.5 Statutes, section 16E.09, to pay initial costs associated with 12.6 certain initiatives, and may include reductions in specified 12.7 categories of purchases. 12.8 Subd. 2. [TRANSFERS.] The commissioner of finance may 12.9 authorize the transfer to and deposit in the general fund of 12.10 money saved under subdivision 1 from funds other than the 12.11 general fund. 12.12 Subd. 3. [SAVINGS.] (a) It is anticipated that actions 12.13 taken under subdivisions 1 and 2 will result in general fund 12.14 savings or revenues of at least $4,000,000 during the biennium 12.15 ending June 30, 2005. General fund savings and revenues that 12.16 are achieved through actions taken under section 27 may be 12.17 applied to the savings requirements estimated to be achieved 12.18 under this section. The commissioner of finance, in 12.19 consultation with the commissioner of administration, must 12.20 reduce general fund appropriations to executive agencies other 12.21 than the Minnesota state colleges and universities by the amount 12.22 of savings estimated to be achieved under this section. 12.23 (b) If the commissioner of finance, in consultation with 12.24 the commissioner of administration, estimates that the actions 12.25 taken under this section will result in general fund savings and 12.26 revenues totaling less than $4,000,000 during the biennium 12.27 ending June 30, 2005, the commissioner of finance must report to 12.28 the legislature by January 15, 2004, with proposed allocations 12.29 of the amount of the difference as reductions to general fund 12.30 operating budgets of executive agencies other than the Minnesota 12.31 state colleges and universities for fiscal year 2005. The 12.32 commissioner must implement the proposed fiscal year 2005 12.33 executive agency operating budget reductions unless the 2004 12.34 legislature enacts a law providing otherwise. 12.35 Sec. 29. [PROCUREMENT EFFICIENCY REVOLVING LOAN FUND.] 12.36 $4,000,000 is appropriated as a loan from the general fund 13.1 in fiscal year 2004 to the commissioner of administration for 13.2 purposes of making investments related to achieving efficiencies 13.3 in purchases of state goods and services. This appropriation is 13.4 available only: (1) to the extent the necessary funds are not 13.5 available from the technology enterprise fund created in 13.6 Minnesota Statutes, section 16E.09; and (2) if the commissioners 13.7 of finance and administration determine that the loan can be 13.8 repaid to the general fund before June 30, 2005, through savings 13.9 in state purchases of goods and services, and the reductions in 13.10 general fund expenditures associated with these savings as 13.11 required by section 28. 13.12 Sec. 30. [INSURANCE.] 13.13 Subdivision 1. [CONTRIBUTION LIMIT.] Total employer 13.14 contributions for medical and dental coverage for eligible state 13.15 employees and dependents and for constitutional officers, 13.16 legislators, and dependents in each year of the biennium ending 13.17 June 30, 2005, shall not exceed the total amount contributed by 13.18 the state for that purpose in the fiscal year ending June 30, 13.19 2003. This section does not apply to the Minnesota state 13.20 colleges and universities. 13.21 Subd. 2. [SAVINGS.] It is anticipated that entities in the 13.22 executive, legislative, and judicial branches of state 13.23 government, not including the Minnesota state colleges and 13.24 universities, will realize general fund operational savings of 13.25 at least $46,240,000 during the biennium ending June 30, 2005, 13.26 as a result of the insurance contribution freeze in subdivision 13.27 1. The commissioner of finance must reduce general fund 13.28 appropriations to executive, legislative, and judicial entities, 13.29 not including the Minnesota state colleges and universities, for 13.30 the biennium ending June 30, 2005, by a proportional amount of 13.31 the $46,240,000 general fund savings. 13.32 Sec. 31. [SALE OF STATE LAND.] 13.33 Subdivision 1. [STATE LAND SALES.] The commissioner of 13.34 administration shall coordinate with the head of each department 13.35 or agency having control of state-owned land to identify and 13.36 sell at least $5,505,000 of state-owned land. Sales should be 14.1 completed according to law and as provided in this section as 14.2 soon as practicable but no later than June 30, 2005. 14.3 Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, or 14.4 any other law to the contrary, the commissioner may offer land 14.5 for public sale by only providing notice of lands or an offer of 14.6 sale of lands to state departments or agencies, the University 14.7 of Minnesota, cities, counties, towns, school districts, or 14.8 other public entities. 14.9 Subd. 2. [ANTICIPATED SAVINGS.] Notwithstanding Minnesota 14.10 Statutes, section 94.16, subdivision 3, or other law to the 14.11 contrary, the amount of the proceeds from the sale of land under 14.12 this section that exceeds the actual expenses of selling the 14.13 land must be deposited in the general fund, except as otherwise 14.14 provided by the commissioner of finance. Notwithstanding 14.15 Minnesota Statutes, section 94.11, the commissioner of finance 14.16 may establish the timing of payments for land purchased under 14.17 this section. If the total of all money deposited into the 14.18 general fund from the proceeds of the sale of land under this 14.19 section is anticipated to be less than $5,505,000, the governor 14.20 must allocate the amount of the difference as reductions to 14.21 general fund operating expenditures for other executive agencies 14.22 for the biennium ending June 30, 2005. 14.23 Subd. 3. [STATE LAND SALES FOR CONSIDERATION.] Based on 14.24 the inventory of state-owned land under Laws 2002, chapter 393, 14.25 section 36, the commissioner of administration with the 14.26 cooperation of the responsible agency head may consider the 14.27 following for sale under this section: 14.28 (1) the BCA property at 1246 University Avenue in St. Paul 14.29 with a public use classification of "to be determined"; and 14.30 (2) other land identified as surplus in the inventory of 14.31 state-owned land. 14.32 Subd. 4. [SALE OF STATE LANDS REVOLVING LOAN 14.33 FUND.] $180,075 is appropriated from the general fund in fiscal 14.34 year 2004 to the commissioner of administration for purposes of 14.35 paying the actual expenses of selling state-owned lands to 14.36 achieve the anticipated savings required in this section. From 15.1 the gross proceeds of land sales under this section, the 15.2 commissioner of administration must cancel the amount of the 15.3 appropriation in this subdivision to the general fund by June 15.4 30, 2005. 15.5 Sec. 32. [SECRETARY OF STATE APPROPRIATION.] 15.6 $369,000 is appropriated in fiscal year 2003 from the 15.7 general fund to the secretary of state for payment of the 15.8 attorney fees awarded by court order in Zachman et al. vs. 15.9 Kiffmeyer et al. This is a onetime appropriation and is not 15.10 added to the secretary of state's base budget. 15.11 Sec. 33. [REAL ESTATE FILING SURCHARGE.] 15.12 All funds collected during the fiscal year ending June 30, 15.13 2004, and funds collected in the fiscal year ending June 30, 15.14 2003, that carry forward into the fiscal year ending June 30, 15.15 2004, pursuant to the additional 50 cent surcharges imposed by 15.16 Laws 2001, First Special Session chapter 10, article 2, section 15.17 77, and Laws 2002, chapter 365, are appropriated to the 15.18 legislative coordinating commission for the real estate task 15.19 force established by Laws 2000, chapter 391, for the purposes 15.20 set forth in Laws 2001, First Special Session chapter 10, 15.21 article 2, sections 98 to 101. $25,000 from those funds are to 15.22 be retained by the legislative coordinating commission for the 15.23 services described in Laws 2001, First Special Session chapter 15.24 10, article 2, section 99. 15.25 Sec. 34. [LOTTERY.] 15.26 The director of the state lottery shall implement an 15.27 international game and a new lotto game, or take other steps 15.28 necessary to raise general fund revenue during the biennium 15.29 ending June 30, 2005, of at least $5,880,000 more than the 15.30 general fund revenue forecast in the governor's budget proposal 15.31 for the biennium ending June 30, 2005. 15.32 Sec. 35. [EFFECTIVE DATE.] 15.33 Sections 26 and 32 are effective the day following final 15.34 enactment. 15.35 ARTICLE 2 15.36 STATE GOVERNMENT OPERATIONS 16.1 Section 1. Minnesota Statutes 2002, section 3.885, 16.2 subdivision 1, is amended to read: 16.3 Subdivision 1. [MEMBERSHIP.] The legislative commission on 16.4 planning and fiscal policy consists of18nine members of the 16.5 senate appointed by the subcommittee on committees of the 16.6 committee on rules and administration and nine members of the 16.7 house of representatives appointed by thelegislative16.8coordinating commissionspeaker. Vacancies on the commission 16.9 are filled in the same manner as original appointments. The 16.10 commission shall elect a chair and a vice-chair from among its 16.11 members. The chair alternates between a member of the senate 16.12 and a member of the house in January of each odd-numbered year. 16.13 Sec. 2. Minnesota Statutes 2002, section 3.971, 16.14 subdivision 2, is amended to read: 16.15 Subd. 2. [STAFF; COMPENSATION.] The legislative auditor 16.16 shall establish a financial audits division and a program 16.17 evaluation division to fulfill the duties prescribed in this 16.18 section. Each divisionmustmay be supervised by a deputy 16.19 auditor, appointed by the legislative auditor, with the approval 16.20 of the commission, for a term coterminous with the legislative 16.21 auditor's term. The deputy auditors may be removed before the 16.22 expiration of their terms only for cause. The legislative 16.23 auditor and deputy auditors may each appoint a confidential 16.24 secretary to serve at pleasure. The salaries and benefits of 16.25 the legislative auditor, deputy auditors and confidential 16.26 secretaries shall be determined by the compensation plan 16.27 approved by the legislative coordinating commission. The deputy 16.28 auditors may perform and exercise the powers, duties and 16.29 responsibilities imposed by law on the legislative auditor when 16.30 authorized by the legislative auditor. The deputy auditors and 16.31 the confidential secretaries serve in the unclassified civil 16.32 service, but all other employees of the legislative auditor are 16.33 in the classified civil service. While in office, a person 16.34 appointed deputy for the financial audit division must hold an 16.35 active license as a certified public accountant. 16.36 Sec. 3. [3A.115] 17.1 The amount necessary to fund the retirement allowance 17.2 granted under this chapter to a former legislator upon 17.3 retirement is appropriated from the general fund to the director 17.4 to pay pension obligations due to the retiree. Retirement 17.5 allowances payable to retired legislators and their survivors 17.6 under this chapter must be adjusted in the same manner, at the 17.7 same times, and in the same amounts as are benefits payable from 17.8 the Minnesota postretirement investment fund to retirees of a 17.9 participating public pension fund. 17.10 Sec. 4. Minnesota Statutes 2002, section 6.48, is amended 17.11 to read: 17.12 6.48 [EXAMINATION OF COUNTIES; COST, FEES.] 17.13 All the powers and duties conferred and imposed upon the 17.14 state auditor shall be exercised and performed by the state 17.15 auditor in respect to the offices, institutions, public 17.16 property, and improvements of several counties of the state. At 17.17 least once in each year, if funds and personnel permit, the 17.18 state auditorshallmay visit, without previous notice, each 17.19 county and make a thorough examination of all accounts and 17.20 records relating to the receipt and disbursement of the public 17.21 funds and the custody of the public funds and other 17.22 property. If the audit is performed by a private certified 17.23 public accountant, the state auditor may require additional 17.24 information from the private certified public accountant as the 17.25 state auditor deems in the public interest. The state auditor 17.26 may accept the audit or make additional examinations as the 17.27 state auditor deems to be in the public interest. The state 17.28 auditor shall prescribe and install systems of accounts and 17.29 financial reports that shall be uniform, so far as practicable, 17.30 for the same class of offices. A copy of the report of such 17.31 examination shall be filed and be subject to public inspection 17.32 in the office of the state auditor and another copy in the 17.33 office of the auditor of the county thus examined. The state 17.34 auditor may accept the records and audit, or any part thereof, 17.35 of the department of human services in lieu of examination of 17.36 the county social welfare funds, if such audit has been made 18.1 within any period covered by the state auditor's audit of the 18.2 other records of the county. If any such examination shall 18.3 disclose malfeasance, misfeasance, or nonfeasance in any office 18.4 of such county, such report shall be filed with the county 18.5 attorney of the county, and the county attorney shall institute 18.6 such civil and criminal proceedings as the law and the 18.7 protection of the public interests shall require. 18.8 The county receivingsuchany examination shall pay to the 18.9 state general fund, notwithstanding the provisions of section 18.10 16A.125, the total cost and expenses of such examinations, 18.11 including the salaries paid to the examiners while actually 18.12 engaged in making such examination. The state auditor on 18.13 deeming it advisable may bill counties, having a population of 18.14 200,000 or over, monthly for services rendered and the officials 18.15 responsible for approving and paying claims shall cause said 18.16 bill to be promptly paid. The general fund shall be credited 18.17 with all collections made for any such examinations. 18.18 Sec. 5. Minnesota Statutes 2002, section 6.49, is amended 18.19 to read: 18.20 6.49 [CITIES OF FIRST CLASS.] 18.21 All powers and duties conferred and imposed upon the state 18.22 auditor with respect to state and county officers, institutions, 18.23 property, and improvements are hereby extended to cities of the 18.24 first class. Copies of the written report of the state auditor 18.25 on the financial condition and accounts of such city shall be 18.26 filed in the state auditor's office, with the mayor, city 18.27 council, and city comptroller thereof, and with the city 18.28 commissioners, if such city have such officers. If such report 18.29 disclose malfeasance, misfeasance, or nonfeasance in office, 18.30 copies thereof shall be filed with the city attorney thereof and 18.31 with the county attorney of the county in which such city is 18.32 located, and these officials of the law shall institute such 18.33 proceedings, civil or criminal, as the law and the public 18.34 interest require. 18.35 The state auditormayshall bill said cities monthly for 18.36 services rendered, including any examination, and the officials 19.1 responsible for approving and paying claims shall cause said 19.2 bill to be promptly paid. 19.3 Sec. 6. Minnesota Statutes 2002, section 6.54, is amended 19.4 to read: 19.5 6.54 [EXAMINATION OF COUNTY AND MUNICIPAL RECORDS PURSUANT 19.6 TO PETITION.] 19.7 The registered voters in a county or home rule charter or 19.8 statutory city or the electors at an annual or special town 19.9 meeting of a town may petition the state auditor to examine the 19.10 books, records, accounts, and affairs of the county, home rule 19.11 charter or statutory city, town, or of any organizational unit, 19.12 activity, project, enterprise, or fund thereof; and the scope of 19.13 the examination may be limited by the petition, but the 19.14 examination shall cover, at least, all cash received and 19.15 disbursed and the transactions relating thereto, provided that 19.16 the state auditor shall not examine more than the six latest 19.17 years preceding the circulation of the petition, unless it 19.18 appears to the state auditor during the examination that the 19.19 audit period should be extended to permit a full recovery under 19.20 bonds furnished by public officers or employees, and may if it 19.21 appears to the auditor in the public interest confine the period 19.22 or the scope of audit or both period and scope of audit, to less 19.23 than that requested by the petition. In the case of a county or 19.24 home rule charter or statutory city, the petition shall be 19.25 signed by a number of registered voters at least equal to 20 19.26 percent of those voting in the last presidential election. The 19.27 eligible voters of any school district may petition the state 19.28 auditor, who shall be subject to the same restrictions regarding 19.29 the scope and period of audit, provided that the petition shall 19.30 be signed by at least ten eligible voters for each 50 resident 19.31 pupils in average daily membership during the preceding school 19.32 year as shown on the records in the office of the commissioner 19.33 of children, families, and learning. In the case of school 19.34 districts, the petition shall be signed by at least ten eligible 19.35 voters. At the time it is circulated, every petition shall 19.36 contain a statement that the cost of the audit will be borne by 20.1 the county, city, or school district as provided by law. Thirty 20.2 days before the petition is delivered to the state auditor it 20.3 shall be presented to the appropriate city or school district 20.4 clerk and the county auditor. The county auditor shall 20.5 determine and certify whether the petition is signed by the 20.6 required number of registered voters or eligible voters as the 20.7 case may be. The certificate shall be conclusive evidence 20.8 thereof in any action or proceeding for the recovery of the 20.9 costs, charges, and expenses of any examination made pursuant to 20.10 the petition. 20.11 Sec. 7. Minnesota Statutes 2002, section 6.55, is amended 20.12 to read: 20.13 6.55 [EXAMINATION OF RECORDS PURSUANT TO RESOLUTION OF 20.14 GOVERNING BODY.] 20.15 The governing body of any city, town, county or school 20.16 district, by appropriate resolution may ask the state auditor to 20.17 examine the books, records, accounts and affairs of their 20.18 government, or of any organizational unit, activity, project, 20.19 enterprise, or fund thereof; and the state auditor shall examine 20.20 the same upon receiving, pursuant to said resolution, a written 20.21 request signed by a majority of the members of the governing 20.22 body; and the governing body of any public utility commission, 20.23 or of any public corporation having a body politic and 20.24 corporate, or of any instrumentality joint or several of any 20.25 city, town, county, or school district, may request an audit of 20.26 its books, records, accounts and affairs in the same manner; 20.27 provided that the scope of the examination may be limited by the 20.28 request, but such examination shall cover, at least, all cash 20.29 received and disbursed and the transactions relating thereto. 20.30 Such written request shall be presented to the clerk, or 20.31 recording officer of such city, town, county, school district, 20.32 public utility commission, public corporation, or 20.33 instrumentality, before being presented to the state auditor, 20.34 who shall determine whether the same is signed by a majority of 20.35 the members of such governing body and, if found to be so 20.36 signed, shall certify such fact, and the fact that such 21.1 resolution was passed, which certificate shall be conclusive 21.2 evidence thereof in any action or proceedings for the recovery 21.3 of the costs, charges and expenses of any examination made 21.4 pursuant to such request. Nothing contained in any of the laws 21.5 of the state relating to the state auditor, shall be so 21.6 construed as to prevent any county, city, town, or school 21.7 district from employing a certified public accountant to examine 21.8 its books, records, accounts, and affairs. For the purposes of 21.9 this section, the governing body of a town is the town board. 21.10 Sec. 8. Minnesota Statutes 2002, section 6.64, is amended 21.11 to read: 21.12 6.64 [COOPERATION WITH PUBLIC ACCOUNTANTS; PUBLIC 21.13 ACCOUNTANT DEFINED.] 21.14 There shall be mutual cooperation between the state auditor 21.15 and public accountants in the performance of auditing, 21.16 accounting, and other related services for counties, cities, 21.17 towns, school districts, and other public corporations. For the 21.18 purposes of sections 6.64 to 6.71 the term public accountant 21.19 shall have the meaning ascribed to it in section 412.222. 21.20 Sec. 9. Minnesota Statutes 2002, section 6.65, is amended 21.21 to read: 21.22 6.65 [MINIMUM PROCEDURES FOR AUDITORS, PRESCRIBED.] 21.23 The state auditor shall prescribe minimum procedures and 21.24 the audit scope for auditing the books, records, accounts, and 21.25 affairs of counties and local governments in Minnesota. The 21.26 minimum scope for audits of all local governments must include 21.27 financial and legal compliance audits. Audits of all school 21.28 districts must include a determination of compliance with 21.29 uniform financial accounting and reporting standards. The state 21.30 auditor shall promulgate an audit guide for legal compliance 21.31 audits, in consultation with representatives of the state 21.32 auditor, the attorney general, towns, cities, counties, school 21.33 districts, and private sector public accountants. 21.34 Sec. 10. Minnesota Statutes 2002, section 6.66, is amended 21.35 to read: 21.36 6.66 [CERTAIN PRACTICES OF PUBLIC ACCOUNTANTS AUTHORIZED.] 22.1 Any public accountant may engage in the practice of 22.2 auditing the books, records, accounts, and affairs of counties, 22.3 cities, towns, school districts, and other public corporations 22.4 which are not otherwise required by law to be audited 22.5 exclusively by the state auditor. 22.6 Sec. 11. Minnesota Statutes 2002, section 6.67, is amended 22.7 to read: 22.8 6.67 [PUBLIC ACCOUNTANTS; REPORT OF EVIDENCE POINTING TO 22.9 MISCONDUCT.] 22.10 Whenever a public accountant in the course of auditing the 22.11 books and affairs of a county, city, town, school district, or 22.12 other public corporations, shall discover evidence pointing to 22.13 nonfeasance, misfeasance, or malfeasance, on the part of an 22.14 officer or employee in the conduct of duties and affairs, the 22.15 public accountant shall promptly make a report of such discovery 22.16 to the state auditor and the county attorney of the county in 22.17 which the governmental unit is situated and the public 22.18 accountant shall also furnish a copy of the report of audit upon 22.19 completion to said officers. The county attorney shall act on 22.20 such report in the same manner as required by law for reports 22.21 made to the county attorney by the state auditor. 22.22 Sec. 12. Minnesota Statutes 2002, section 6.68, 22.23 subdivision 1, is amended to read: 22.24 Subdivision 1. [REQUEST TO GOVERNING BODY.] If in an audit 22.25 of a county, city, town, school district, or other public 22.26 corporation, a public accountant has need of the assistance of 22.27 the state auditor, the accountant may obtain such assistance by 22.28 requesting the governing body of the governmental unit being 22.29 examined to request the state auditor to perform such auditing 22.30 or investigative services, or both, as the matter and the public 22.31 interest require. 22.32 Sec. 13. Minnesota Statutes 2002, section 6.70, is amended 22.33 to read: 22.34 6.70 [ACCESS TO REPORTS.] 22.35 The state auditor and the public accountants shall have 22.36 reasonable access to each other's audit reports, working papers, 23.1 and audit programs concerning audits made by each of counties, 23.2 cities, towns, school districts, and other public corporations. 23.3 Sec. 14. Minnesota Statutes 2002, section 6.71, is amended 23.4 to read: 23.5 6.71 [SCOPE OF AUDITOR'S INVESTIGATION.] 23.6 Whenever the governing body of a county, city, town, or 23.7 school district shall have requested a public accountant to make 23.8 an audit of its books and affairs, and such audit is in progress 23.9 or has been completed, andfreeholdersregistered voters or 23.10 electors petition or the governing body requests or both the 23.11 state auditor to make an examination covering the same, or part 23.12 of the same, period, the state auditor may, in the public 23.13 interest, limit the scope of the examination to less than that 23.14 specified in section 6.54, but the scope shall cover, at least, 23.15 an investigation of those complaints which are within the state 23.16 auditor's powers and duties to investigate. 23.17 Sec. 15. Minnesota Statutes 2002, section 6.74, is amended 23.18 to read: 23.19 6.74 [INFORMATION COLLECTED FROM LOCAL GOVERNMENTS.] 23.20 The state auditor, or a designated agent, shall collect 23.21 annually from all city, county, and other local units of 23.22 government, information as to the assessment of property, 23.23 collection of taxes, receipts from licenses and other sources, 23.24 the expenditure of public funds for all purposes, borrowing, 23.25 debts, principal and interest payments on debts, and such other 23.26 information as may be needful. The data shall be supplied 23.27 uponblanksforms prescribed by the state auditor, and all 23.28 public officials so called upon shall fill out properly and 23.29 return promptly allblanksforms so transmitted. The state 23.30 auditor or assistants, may examine local records in order to 23.31 complete or verify the information. 23.32 Sec. 16. [6.78] [BEST PRACTICES REVIEWS.] 23.33 The state auditor shall conduct best practices reviews that 23.34 examine the procedures and practices used to deliver local 23.35 government services, determine the methods of local government 23.36 service delivery, identify variations in cost and effectiveness, 24.1 and identify practices to save money or provide more effective 24.2 service delivery. The state auditor shall recommend to local 24.3 governments service delivery methods and practices to improve 24.4 the cost-effectiveness of services. The state auditor shall 24.5 determine the local government services to be reviewed in 24.6 consultation with representatives of the Association of 24.7 Minnesota Counties, the League of Minnesota Cities, the 24.8 Association of Metropolitan Municipalities, the Minnesota 24.9 Association of Townships, the Minnesota Municipal Utilities 24.10 Association, and the Minnesota Association of School 24.11 Administrators. 24.12 [EFFECTIVE DATE.] This section is effective July 1, 2004. 24.13 Sec. 17. [6.79] [EQUITABLE COMPENSATION COMPLIANCE.] 24.14 The state auditor may adopt rules under the Administrative 24.15 Procedure Act to ensure compliance with sections 471.991 to 24.16 471.999. 24.17 Sec. 18. Minnesota Statutes 2002, section 8.06, is amended 24.18 to read: 24.19 8.06 [ATTORNEY FOR STATE OFFICERS, BOARDS, OR COMMISSIONS; 24.20 EMPLOY COUNSEL.] 24.21 The attorney general shall act as the attorney for all 24.22 state officers and all boards or commissions created by law in 24.23 all matters pertaining to their official duties. When requested 24.24 by the attorney general, it shall be the duty of any county 24.25 attorney of the state to appear within the county and act as 24.26 attorney for any such board, commission, or officer in any court 24.27 of such county. The attorney general may, upon request in 24.28 writing, employ, and fix the compensation of, a special attorney 24.29 for any such board, commission, or officer when, in the attorney 24.30 general's judgment, the public welfare will be promoted 24.31 thereby. Such special attorney's fees or salary shall be paid 24.32 from the appropriation made for such board, commission, or 24.33 officer. Except as herein provided, no board, commission, or 24.34 officer shall hereafter employ any attorney at the expense of 24.35 the state. 24.36 Whenever the attorney general, the governor,andor the 25.1 chief justice of the supreme court shall certify, in writing, 25.2 filed in the office of the secretary of state, that it is 25.3 necessary, in the proper conduct of the legal business of the 25.4 state, either civil or criminal, that the state employ 25.5 additional counsel, the attorney general, the governor, or the 25.6 chief justice of the supreme court shall thereuponbe authorized25.7to employauthorize the employment of such counsel and, with the25.8governor and the chief justice,fix the additional counsel's 25.9 compensation. Except as herein stated, no additional counsel 25.10 shall be employed and the legal business of the state shall be 25.11 performed exclusively by the attorney general and the attorney 25.12 general's assistants. 25.13 Sec. 19. Minnesota Statutes 2002, section 10A.02, is 25.14 amended by adding a subdivision to read: 25.15 Subd. 15. [DISPOSITION OF FEES.] The board must deposit 25.16 all fees collected under this chapter into the general fund in 25.17 the state treasury. 25.18 Sec. 20. Minnesota Statutes 2002, section 10A.02, is 25.19 amended by adding a subdivision to read: 25.20 Subd. 16. [PROPOSED FEE CHANGES.] As part of its 25.21 submission of its biennial budget request, the board must 25.22 propose changes to the fees required in this chapter that will 25.23 be sufficient to recover the direct appropriation to the board. 25.24 The board must include in its recovery calculation seven percent 25.25 of the amounts designated by individuals for the state elections 25.26 campaign fund under section 10A.31, subdivision 4. 25.27 Sec. 21. Minnesota Statutes 2002, section 10A.04, 25.28 subdivision 2, is amended to read: 25.29 Subd. 2. [TIME OF REPORTS.] Each report must cover the 25.30 time from the last day of the period covered by the last report 25.31 to 15 days before the current filing date. The reports must be 25.32 filed with the board by the following dates: 25.33 (1) January 15; and 25.34 (2)April 15; and25.35(3) July 15June 15. 25.36 Sec. 22. Minnesota Statutes 2002, section 10A.04, 26.1 subdivision 4, is amended to read: 26.2 Subd. 4. [CONTENT.] (a) A report under this section must 26.3 include information the board requires from the registration 26.4 form and the information required by this subdivision for the 26.5 reporting period. 26.6 (b) A lobbyist must report the lobbyist's total 26.7 disbursements on lobbying, separately listing lobbying to 26.8 influence legislative action, lobbying to influence 26.9 administrative action, and lobbying to influence the official 26.10 actions of a metropolitan governmental unit, and a breakdown of 26.11 disbursements for each of those kinds of lobbying into 26.12 categories specified by the board, including but not limited to 26.13 the cost of publication and distribution of each publication 26.14 used in lobbying; other printing; media, including the cost of 26.15 production; postage; travel; fees, including allowances; 26.16 entertainment; telephone and telegraph; and other expenses. 26.17 (c) A lobbyist must report the amount and nature of each 26.18 gift, item, or benefit, excluding contributions to a candidate, 26.19 equal in value to $5 or more, given or paid to any official, as 26.20 defined in section 10A.071, subdivision 1, by the lobbyist or an 26.21 employer or employee of the lobbyist. The list must include the 26.22 name and address of each official to whom the gift, item, or 26.23 benefit was given or paid and the date it was given or paid. 26.24 (d) A lobbyist must report each original source of money in 26.25 excess of $500 in any year used for the purpose of lobbying to 26.26 influence legislative action, administrative action, or the 26.27 official action of a metropolitan governmental unit. The list 26.28 must include the name, address, and employer, or, if 26.29 self-employed, the occupation and principal place of business, 26.30 of each payer of money in excess of $500. 26.31 (e) On the report dueApril 15June 15, the lobbyist must 26.32 provide a general description of the subjects lobbied in the 26.33 previous 12 months. 26.34 Sec. 23. Minnesota Statutes 2002, section 10A.04, is 26.35 amended by adding a subdivision to read: 26.36 Subd. 9. [ELECTRONIC REPORTS.] Effective January 1, 2005, 27.1 a lobbyist may file a report required under this section 27.2 electronically with the board. 27.3 Sec. 24. [10A.045] [LOBBYIST AND PRINCIPAL REPORT FEES.] 27.4 Subdivision 1. [PURPOSE.] The purpose of this section is 27.5 to pay for the cost of administering sections 10A.03 to 10A.06 27.6 with fees collected from lobbyists to be used only for that 27.7 purpose. 27.8 Subd. 2. [FEE; USE; PROHIBITION.] Each lobbyist and 27.9 principal must pay a biennial fee of $400 by January 15 of every 27.10 odd-numbered year. Authorized unpaid volunteers of an 27.11 organization recognized as a 501(c)(3) charity by the Internal 27.12 Revenue Service are not required to pay this fee. The fees 27.13 collected under this section must not be more than the amount 27.14 necessary to administer the lobbyist registration and regulation 27.15 provisions of this chapter. A person who has not paid the fee 27.16 required by this section is prohibited from acting as a lobbyist. 27.17 Sec. 25. Minnesota Statutes 2002, section 10A.09, 27.18 subdivision 6, is amended to read: 27.19 Subd. 6. [SUPPLEMENTARY STATEMENT.] Each individual who is 27.20 required to file a statement of economic interest must file a 27.21 supplementary statement on April 15 of each year that the 27.22 individual remains in officeif information on the most recently27.23filed statement has changed. The supplementary statement, if27.24required,must include the amount of each honorarium in excess 27.25 of $50 received since the previous statement and the name and 27.26 address of the source of the honorarium. The board must 27.27 maintain a statement of economic interest submitted by an 27.28 officeholder in the same file with the statement submitted as a 27.29 candidate. 27.30 Sec. 26. Minnesota Statutes 2002, section 10A.09, is 27.31 amended by adding a subdivision to read: 27.32 Subd. 9. [FILING FEE.] A public official required to file 27.33 a statement of economic interest or an annual supplementary 27.34 statement with the board under this section must accompany the 27.35 statement with a $65 filing fee. A public official listed in 27.36 section 10A.01, subdivision 35, clause (2), is not required to 28.1 pay this fee. 28.2 Sec. 27. [10A.145] [REGISTRATION FEES.] 28.3 Subdivision 1. [REQUIREMENT.] Each principal campaign 28.4 committee must pay to the board a registration fee when it 28.5 originally registers with the board and each time a nonjudicial 28.6 candidate for whom a committee is registered files for office. 28.7 The office with which the candidate files must collect the fee 28.8 when the candidate files and must deposit it into the general 28.9 fund in the state treasury. 28.10 Subd. 2. [AMOUNT OF FEE.] The registration fees are as 28.11 follows: 28.12 (1) principal campaign committee for candidate for 28.13 nonjudicial statewide office, $1,000; 28.14 (2) principal campaign committee for candidate for state 28.15 senate, $600; 28.16 (3) principal campaign committee for candidate for state 28.17 house of representatives, $300; 28.18 (4) principal campaign committee for judicial candidate, 28.19 $250. 28.20 Subd. 3. [TRANSITION.] Lobbyists, principals, and 28.21 principal campaign committees that are registered on the 28.22 effective date of this section must pay the fee for initial 28.23 registration required by this section or section 10A.045 within 28.24 60 days after the effective date of this section. This 28.25 subdivision expires August 1, 2004. 28.26 Sec. 28. Minnesota Statutes 2002, section 10A.31, 28.27 subdivision 4, is amended to read: 28.28 Subd. 4. [APPROPRIATION.](a)The amounts designated by 28.29 individuals for the state elections campaign fund, lessthree28.30 ten percent, are appropriated from the general fund, must be 28.31 transferred and credited to the appropriate account in the state 28.32 elections campaign fund, and are annually appropriated for 28.33 distribution as set forth in subdivisions 5, 5a, 6, and 7. The 28.34 remainingthreeten percent must be kept in the general fund for 28.35 administrative costs. 28.36(b) In addition to the amounts in paragraph (a), $1,500,00029.1for each general election is appropriated from the general fund29.2for transfer to the general account of the state elections29.3campaign fund.29.4 Sec. 29. Minnesota Statutes 2002, section 14.091, is 29.5 amended to read: 29.6 14.091 [PETITION; UNIT OF LOCAL GOVERNMENT.] 29.7 (a) The elected governing body of a statutory or home rule 29.8 city, a county, or a sanitary district may petition for 29.9 amendment or repeal of a rule or a specified portion of a rule. 29.10 The petition must be adopted by resolution of the elected 29.11 governing body and must be submitted in writing to the agency 29.12 and to the office of administrative hearings, must specify what 29.13 amendment or repeal is requested, and must demonstrate that one 29.14 of the following has become available since the adoption of the 29.15 rule in question: 29.16 (1) significant new evidence relating to the need for or 29.17 reasonableness of the rule; or 29.18 (2) less costly or intrusive methods of achieving the 29.19 purpose of the rule. 29.20 (b) Within 30 days of receiving a petition, an agency shall 29.21 reply to the petitioner in writing stating either that the 29.22 agency, within 90 days of the date of the reply, will give 29.23 notice under section 14.389 of intent to adopt the amendment or 29.24 repeal requested by the petitioner or that the agency does not 29.25 intend to amend or repeal the rule and has requested the office 29.26 of administrative hearings to review the petition. If the 29.27 agency intends to amend or repeal the rule in the manner 29.28 requested by the petitioner, the agency must use the process 29.29 under section 14.389 to amend or repeal the rule. Section 29.30 14.389, subdivision 5, applies. 29.31 (c) Upon receipt of an agency request under paragraph (b), 29.32 the chief administrative law judge shall assign an 29.33 administrative law judge, who was not involved when the rule or 29.34 portion of a rule that is the subject of the petition was 29.35 adopted or amended, to review the petition to determine whether 29.36 the petitioner has complied with the requirements of paragraph 30.1 (a). The petitioner, the agency, or any interested person, at 30.2 the option of any of them, may submit written material for the 30.3 assigned administrative law judge's consideration within ten 30.4 days of the chief administrative law judge's receipt of the 30.5 agency request. The administrative law judge shall dismiss the 30.6 petition if the judge determines that: 30.7 (1) the petitioner has not complied with the requirements 30.8 of paragraph (a); 30.9 (2) the rule is required to comply with a court order; or 30.10 (3) the rule is required by federal law or is required to 30.11 maintain authority to administer a federal program. 30.12 (d) If the administrative law judge assigned by the chief 30.13 administrative law judge determines that the petitioner has 30.14 complied with the requirements of paragraph (a), the 30.15 administrative law judge shall conduct a hearing and issue a 30.16 decision on the petition within 120 days of its receipt by the 30.17 office of administrative hearings. The agency shall give notice 30.18 of the hearing in the same manner required for notice of a 30.19 proposed rule hearing under section 14.14, subdivision 1a. At 30.20 the public hearing, the agency shall make an affirmative 30.21 presentation of facts establishing the need for and 30.22 reasonableness of the rule or portion of the rule in question. 30.23 If the administrative law judge determines that the agency has 30.24 not established the continued need for and reasonableness of the 30.25 rule or portion of the rule, the rule or portion of the rule 30.26 does not have the force of law, effective 90 days after the 30.27 administrative law judge's decision, unless the agency has 30.28 before then published notice in the State Register of intent to 30.29 amend or repeal the rule in accordance with paragraph (e). 30.30 (e) The agency may amend or repeal the rule in the manner 30.31 requested by the petitioner, or in another manner that the 30.32 administrative law judge has determined is needed and reasonable. 30.33 Amendments under this paragraph may be adopted under the 30.34 expedited process in section 14.389. Section 14.389, 30.35 subdivision 5, applies to this adoption. If the agency uses the 30.36 expedited process and no public hearing is required, the agency 31.1 must complete the amendment or repeal of the rule within 90 days 31.2 of the administrative law judge's decision under paragraph (d). 31.3 If a public hearing is required, the agency must complete the 31.4 amendment or repeal of the rule within 180 days of the 31.5 administrative law judge's decision under paragraph (d). A rule 31.6 or portion of a rule that is not amended or repealed in the time 31.7 prescribed by this paragraph does not have the force of law upon 31.8 expiration of the deadline. A rule that is amended within the 31.9 time prescribed in this paragraph has the force of law, as 31.10 amended. 31.11 (f) The chief administrative law judge shall report the 31.12 decision under paragraph (d) within 30 days to the chairs of the 31.13 house and senate committees having jurisdiction over 31.14 governmental operations and the chairs of the house and senate 31.15 committees having jurisdiction over the agency whose rule or 31.16 portion of a rule was the subject of the petition. 31.17 (g) The chief administrative law judge shall assess a 31.18 petitioner half the cost of processing a petition and conducting 31.19 a public hearing under paragraph (d). 31.20(h) This section expires July 31, 2006.31.21 Sec. 30. Minnesota Statutes 2002, section 14.48, is 31.22 amended by adding a subdivision to read: 31.23 Subd. 4. [MANDATORY RETIREMENT.] An administrative law 31.24 judge and compensation judge must retire upon attaining age 70. 31.25 The chief administrative law judge may appoint a retired 31.26 administrative law judge or compensation judge to hear any 31.27 proceeding that is properly assignable to an administrative law 31.28 judge or compensation judge. When a retired administrative law 31.29 judge or compensation judge undertakes this service, the retired 31.30 judge shall receive pay and expenses in the amount payable to 31.31 temporary administrative law judges or compensation judges 31.32 serving under section 14.49. 31.33 [EFFECTIVE DATE.] This section is effective June 30, 2003. 31.34 An administrative law judge or compensation judge who has 31.35 attained the age of 70 on or before that date must retire by 31.36 June 30, 2003. 32.1 Sec. 31. Minnesota Statutes 2002, section 15.50, 32.2 subdivision 1, as amended by Laws 2003, chapter 17, section 1, 32.3 subdivision 2, is amended to read: 32.4 Subd. 2. [MEMBERSHIP, APPOINTERS; OATH QUALIFIES.] (a) The 32.5 capitol area architectural and planning board, called the board 32.6 or the CAAPB in this chapter, is established within the 32.7 department of administration. The board has ten members. 32.8 (b) The lieutenant governor is a member. 32.9 (c) The governor must appoint four members. 32.10 (d) The mayor of St. Paul must appoint three members with 32.11 the advice and consent of the city council. One of the mayor's 32.12 appointees must be a resident of the planning council district 32.13 that includes the capitol area. 32.14 (e) The speaker of the house must appoint a member of the 32.15 house of representatives and the president of the senate must 32.16 appoint a senator. 32.17 (f) Each appointee must qualify by taking the oath of 32.18 office. 32.19 Sec. 32. Minnesota Statutes 2002, section 15.50, 32.20 subdivision 1, as amended by Laws 2003, chapter 17, section 1, 32.21 subdivision 4, is amended to read: 32.22 Subd. 4. [EXECUTIVE SECRETARY, CLASSIFIED PERSONNEL, 32.23 CONTRACTORS.] (a) The commissioner of administration, after 32.24 consulting with the board, must appoint an executive secretary 32.25 to serve the board. 32.26 (b) Theboardcommissioner may employ any other officers 32.27 and employeesitthe commissioner considers necessary. Those 32.28 employed under this paragraph are in the state classified civil 32.29 service. 32.30 (c) The board may contract for professional and other 32.31 similar services on the terms it considers desirable. 32.32 (d) The commissioner must provide administrative support to 32.33 the board. 32.34 Sec. 33. [15A.23] [POLITICAL SUBDIVISION COMPENSATION 32.35 LIMIT.] 32.36 (a) The salary and the value of all other forms of 33.1 compensation of a person employed by a political subdivision of 33.2 this state excluding a school district, or employed under 33.3 section 422A.03, may not exceed 95 percent of the salary of the 33.4 governor as set under section 15A.082, except as provided in 33.5 this section. For purposes of this subdivision, "political 33.6 subdivision of this state" includes a statutory or home rule 33.7 charter city, county, town, metropolitan or regional agency, or 33.8 other political subdivision, but does not include a hospital, 33.9 clinic, or health maintenance organization owned by such a 33.10 governmental unit. 33.11 (b) Deferred compensation and payroll allocations to 33.12 purchase an individual annuity contract for an employee are 33.13 included in determining the employee's salary. Other forms of 33.14 compensation which shall be included to determine an employee's 33.15 total compensation are all other direct and indirect items of 33.16 compensation which are not specifically excluded by this 33.17 section. Other forms of compensation which shall not be 33.18 included in a determination of an employee's total compensation 33.19 for the purposes of this section are: 33.20 (1) employee benefits that are also provided for the 33.21 majority of all other full-time employees of the political 33.22 subdivision, vacation and sick leave allowances, health and 33.23 dental insurance, disability insurance, term life insurance, and 33.24 pension benefits or like benefits the cost of which is borne by 33.25 the employee or which is not subject to tax as income under the 33.26 Internal Revenue Code of 1986; 33.27 (2) dues paid to organizations that are of a civic, 33.28 professional, educational, or governmental nature; and 33.29 (3) reimbursement for actual expenses incurred by the 33.30 employee which the governing body determines to be directly 33.31 related to the performance of job responsibilities, including 33.32 any relocation expenses paid during the initial year of 33.33 employment. 33.34 The value of other forms of compensation shall be the 33.35 annual cost to the political subdivision for the provision of 33.36 the compensation. 34.1 (c) The salary of a medical doctor or doctor of osteopathy 34.2 occupying a position that the governing body of the political 34.3 subdivision has determined requires an M.D. or D.O. degree is 34.4 excluded from the limitation in this section. 34.5 (d) The state auditor may increase the limitation in this 34.6 section for a position that the state auditor has determined 34.7 requires special expertise necessitating a higher salary to 34.8 attract or retain a qualified person. The state auditor shall 34.9 review each proposed increase giving due consideration to salary 34.10 rates paid to other persons with similar responsibilities in the 34.11 state and nation. 34.12 Before granting an increase in the limitation, the state 34.13 auditor must submit the proposed increase to the legislative 34.14 coordinating commission for its review and recommendation. The 34.15 recommendation is advisory only. If the commission fails to 34.16 make a recommendation with 30 days from its receipt of the 34.17 proposal, it is deemed to have made no recommendation. The 34.18 state auditor may charge and collect, pursuant to section 6.56, 34.19 a fee from political subdivisions proposing a limitation 34.20 increase to cover the cost incurred by the state auditor under 34.21 this subdivision. 34.22 Sec. 34. Minnesota Statutes 2002, section 16A.102, 34.23 subdivision 1, is amended to read: 34.24 Subdivision 1. [GOVERNOR'S RECOMMENDATION.] By thefourth34.25Tuesday in January of each odd-numbered yeardate specified in 34.26 section 16A.11, subdivision 1, for submission of parts one and 34.27 two of the governor's budget, the governor shall submit to the 34.28 legislature a recommended revenue target for the next two 34.29 bienniums. The recommended revenue target must specify: 34.30 (1) the maximum share of Minnesota personal income to be 34.31 collected in taxes and other revenues to pay for state and local 34.32 government services; 34.33 (2) the division of the share between state and local 34.34 government revenues; and 34.35 (3) the mix and rates of income, sales, and other state and 34.36 local taxes including property taxes and other revenues. 35.1 The recommendations must be based on the November forecast 35.2 prepared under section 16A.103. 35.3 Sec. 35. Minnesota Statutes 2002, section 16A.11, 35.4 subdivision 3, is amended to read: 35.5 Subd. 3. [PART TWO: DETAILED BUDGET.] (a) Part two of the 35.6 budget, the detailed budget estimates both of expenditures and 35.7 revenues, must contain any statements on the financial plan 35.8 which the governor believes desirable or which may be required 35.9 by the legislature. The detailed estimates shall include the 35.10 governor's budget arranged in tabular form. 35.11 (b) The detailed estimates must include a separate line 35.12 listingthe total number of professional or technical service35.13contracts andthe total cost ofthoseprofessional and technical 35.14 service contracts for the prior biennium and the 35.15 projectednumber of professional or technical service contracts35.16and the projectedcosts of those contracts for the current and 35.17 upcoming biennium. They must also include a summary of the 35.18 personnel employed by the agency, reflected as full-time 35.19 equivalent positions, and the number of professional or35.20technical service consultants for the current biennium. 35.21 (c) The detailed estimates for internal service funds must 35.22 include the number of full-time equivalents by program; detail 35.23 on any loans from the general fund, including dollar amounts by 35.24 program; proposed investments in technology or equipment of 35.25 $100,000 or more; an explanation of any operating losses or 35.26 increases in retained earnings; and a history of the rates that 35.27 have been charged, with an explanation of any rate changes and 35.28 the impact of the rate changes on affected agencies. 35.29 [EFFECTIVE DATE.] This section is effective the day 35.30 following final enactment. 35.31 Sec. 36. Minnesota Statutes 2002, section 16A.17, is 35.32 amended by adding a subdivision to read: 35.33 Subd. 10. [DIRECT DEPOSIT.] Notwithstanding section 35.34 177.23, the commissioner may require direct deposit for all 35.35 state employees that are being paid by the state payroll system. 35.36 Sec. 37. Minnesota Statutes 2002, section 16A.40, is 36.1 amended to read: 36.2 16A.40 [WARRANTS AND ELECTRONIC FUND TRANSFERS.] 36.3 Money must not be paid out of the state treasury except 36.4 upon the warrant of the commissioner or an electronic fund 36.5 transfer approved by the commissioner. Warrants must be drawn 36.6 on printed blanks that are in numerical order. The commissioner 36.7 shall enter, in numerical order in a warrant register, the 36.8 number, amount, date, and payee for every warrant issued. 36.9 The commissioner may require payeesreceiving more than ten36.10payments or $10,000 per year mustto supplythe commissioner36.11withtheir bank routing information to enable the payments to be 36.12 made through an electronic fund transfer. 36.13 Sec. 38. Minnesota Statutes 2002, section 16A.501, is 36.14 amended to read: 36.15 16A.501 [REPORT ON EXPENDITURE OF BOND PROCEEDS.] 36.16 The commissioner of finance must report annually to the 36.17 legislature on the degree to which entities receiving 36.18 appropriations for capital projects in previous omnibus capital 36.19 improvement acts have encumbered or expended that money. The 36.20 report must be submitted to the chairs of the house of 36.21 representatives ways and means committee and the senate finance 36.22 committee byFebruaryJanuary 1 of each year. 36.23 Sec. 39. Minnesota Statutes 2002, section 16A.642, 36.24 subdivision 1, is amended to read: 36.25 Subdivision 1. [REPORTS.] (a) The commissioner of finance 36.26 shall report to the chairs of the senate committee on finance 36.27 and the house of representatives committees on ways and means 36.28 and on capital investment byFebruaryJanuary 1 of each 36.29 odd-numbered year on the following: 36.30 (1) all laws authorizing the issuance of state bonds or 36.31 appropriating general fund money for state or local government 36.32 capital investment projects enacted more than four years before 36.33FebruaryJanuary 1 of that odd-numbered year; the projects 36.34 authorized to be acquired and constructed for which less than 36.35 100 percent of the authorized total cost has been expended, 36.36 encumbered, or otherwise obligated; the cost of contracts to be 37.1 let in accordance with existing plans and specifications shall 37.2 be considered expended for this report; and the amount of 37.3 general fund money appropriated but not spent or otherwise 37.4 obligated, and the amount of bonds not issued and bond proceeds 37.5 held but not previously expended, encumbered, or otherwise 37.6 obligated for these projects; and 37.7 (2) all laws authorizing the issuance of state bonds or 37.8 appropriating general fund money for state or local government 37.9 capital programs or projects other than those described in 37.10 clause (1), enacted more than four years beforeFebruaryJanuary 37.11 1 of that odd-numbered year; and the amount of general fund 37.12 money appropriated but not spent or otherwise obligated, and the 37.13 amount of bonds not issued and bond proceeds held but not 37.14 previously expended, encumbered, or otherwise obligated for 37.15 these programs and projects. 37.16 (b) The commissioner shall also report on general fund 37.17 appropriations for capital projects, bond authorizations or bond 37.18 proceed balances that may be canceled because projects have been 37.19 canceled, completed, or otherwise concluded, or because the 37.20 purposes for which the money was appropriated or bonds were 37.21 authorized or issued have been canceled, completed, or otherwise 37.22 concluded. The general fund appropriations, bond authorizations 37.23 or bond proceed balances that are unencumbered or otherwise not 37.24 obligated that are reported by the commissioner under this 37.25 subdivision are canceled, effective July 1 of the year of the 37.26 report, unless specifically reauthorized by act of the 37.27 legislature. 37.28 Sec. 40. Minnesota Statutes 2002, section 16B.054, is 37.29 amended to read: 37.30 16B.054 [DEVELOPMENTAL DISABILITIES.] 37.31 The department of administration is designated as the 37.32 responsible agency to assist the Minnesota governor's council on 37.33 developmental disabilities in carrying out all responsibilities 37.34 underUnited States Code, title 42, section 6021 et seq.the 37.35 Developmental Disabilities Assistance and Bill of Rights Act of 37.36 2000, also known as United States Code, title 42, sections 15001 38.1 to 15115, and Public Law 106-402 (October 30, 2000, 106th 38.2 Congress), as well as those responsibilities relating to the 38.3 program which are not delegated to the council. 38.4 Sec. 41. Minnesota Statutes 2002, section 16B.24, 38.5 subdivision 1, is amended to read: 38.6 Subdivision 1. [OPERATION AND MAINTENANCE OF BUILDINGS.] 38.7 The commissioner is authorized to maintain and operate the state 38.8 capitol building and grounds, subject to whatever standards and 38.9 policies are set for its appearance and cleanliness by the 38.10 capitol area architectural and planning board and the 38.11 commissioner under section 15.50, subdivision 2, clause (j), and 38.12 all other buildings, cafeterias, and grounds in state-owned 38.13 buildings in the capitol area under section 15.50, subdivision 38.14 2, clause (a), the state department of public safety, bureau of 38.15 criminal apprehension building in St. Paul, the state department 38.16 of health building in Minneapolis,the Duluth government38.17services center in Duluth,321 Grove Street buildings in St. 38.18 Paul, any other properties acquired by the department of 38.19 administration, and, when the commissioner considers it 38.20 advisable and practicable, any other building or premises owned 38.21 or rented by the state for the use of a state agency. The 38.22 commissioner shall assign and reassign office space in the 38.23 capitol and state buildings to make an equitable division of 38.24 available space among agencies. The commissioner shall 38.25 regularly update the long-range strategic plan for locating 38.26 agencies and shall follow the plan in assigning and reassigning 38.27 space to agencies. The plan must include locational and urban 38.28 design criteria, a cost-analysis method to be used in weighing 38.29 state ownership against leasing of space in specific instances, 38.30 and a transportation management plan. If the commissioner 38.31 determines that a deviation from the plan is necessary or 38.32 desirable in a specific instance, the commissioner shall provide 38.33 the legislature with a timely written explanation of the reasons 38.34 for the deviation. The power granted in this subdivision does 38.35 not apply to state hospitals or to educational, penal, 38.36 correctional, or other institutions not enumerated in this 39.1 subdivision the control of which is vested by law in some other 39.2 agency. 39.3 Sec. 42. Minnesota Statutes 2002, section 16B.24, 39.4 subdivision 5, is amended to read: 39.5 Subd. 5. [RENTING OUT STATE PROPERTY.] (a) [AUTHORITY.] 39.6 The commissioner may rent out state property, real or personal, 39.7 that is not needed for public use, if the rental is not 39.8 otherwise provided for or prohibited by law. The property may 39.9 not be rented out for more than five years at a time without the 39.10 approval of the state executive council and may never be rented 39.11 out for more than 25 years. A rental agreement may provide that 39.12 the state will reimburse a tenant for a portion of capital 39.13 improvements that the tenant makes to state real property if the 39.14 state does not permit the tenant to renew the lease at the end 39.15 of the rental agreement. 39.16 (b) [RESTRICTIONS.] Paragraph (a) does not apply to state 39.17 trust fund lands, other state lands under the jurisdiction of 39.18 the department of natural resources, lands forfeited for 39.19 delinquent taxes, lands acquired under section 298.22, or lands 39.20 acquired under section 41.56 which are under the jurisdiction of 39.21 the department of agriculture. 39.22 (c) [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling 39.23 Chapel, located within the boundaries of Fort Snelling State 39.24 Park, is available for use only on payment of a rental fee. The 39.25 commissioner shall establish rental fees for both public and 39.26 private use. The rental fee for private use by an organization 39.27 or individual must reflect the reasonable value of equivalent 39.28 rental space. Rental fees collected under this section must be 39.29 deposited in the general fund. 39.30 (d) [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner 39.31 shall establish rental rates for all living accommodations 39.32 provided by the state for its employees. Money collected as 39.33 rent by state agencies pursuant to this paragraph must be 39.34 deposited in the state treasury and credited to the general fund. 39.35 (e) [LEASE OF SPACE IN CERTAIN STATE BUILDINGS TO STATE 39.36 AGENCIES.] The commissioner may lease portions of the 40.1 state-owned buildings in the capitol complex, the capitol square 40.2 building, the health building,the Duluth government center,and 40.3 the building at 1246 University Avenue, St. Paul, Minnesota, to 40.4 state agencies and the court administrator on behalf of the 40.5 judicial branch of state government and charge rent on the basis 40.6 of space occupied. Notwithstanding any law to the contrary, all 40.7 money collected as rent pursuant to the terms of this section 40.8 shall be deposited in the state treasury. Money collected as 40.9 rent to recover the bond interest costs of a building funded 40.10 from the state bond proceeds fund shall be credited to the 40.11 general fund. Money collected as rent to recover the 40.12 depreciation costs of a building funded from the state bond 40.13 proceeds fund and money collected as rent to recover capital 40.14 expenditures from capital asset preservation and replacement 40.15 appropriations and statewide building access appropriations 40.16 shall be credited to a segregated account in a special revenue 40.17 fund. Fifty percent of the money credited to the account each 40.18 fiscal year must be transferred to the general fund. The 40.19 remaining money in the account is appropriated to the 40.20 commissioner to be expended for asset preservation projects as 40.21 determined by the commissioner. Money collected as rent to 40.22 recover the depreciation and interest costs of a building built 40.23 with other state dedicated funds shall be credited to the 40.24 dedicated fund which funded the original acquisition or 40.25 construction. All other money received shall be credited to the 40.26 general services revolving fund. 40.27 Sec. 43. Minnesota Statutes 2002, section 16B.33, 40.28 subdivision 3, is amended to read: 40.29 Subd. 3. [AGENCIES MUST REQUEST DESIGNER.] (a) 40.30 [APPLICATION.] Upon undertaking a project with an estimated cost 40.31 greater than$750,000$2,000,000 or a planning project with 40.32 estimated fees greater than$60,000$200,000, every user agency, 40.33 except the capitol area architectural and planning board, shall 40.34 submit a written request for a primary designer for its project 40.35 to the commissioner, who shall forward the request to the 40.36 board. The University of Minnesota and the Minnesota state 41.1 colleges and universities shall follow the process in 41.2 subdivision 3a to select designers for their projects. The 41.3 written request must include a description of the project, the 41.4 estimated cost of completing the project, a description of any 41.5 special requirements or unique features of the proposed project, 41.6 and other information which will assist the board in carrying 41.7 out its duties and responsibilities set forth in this section. 41.8 (b) [REACTIVATED PROJECT.] If a project for which a 41.9 designer has been selected by the board becomes inactive, 41.10 lapses, or changes as a result of project phasing, insufficient 41.11 appropriations, or other reasons, the commissioner, the 41.12 Minnesota state colleges and universities, or the University of 41.13 Minnesota may, if the project is reactivated, retain the same 41.14 designer to complete the project. 41.15 (c) [FEE LIMIT REACHED AFTER DESIGNER SELECTED.] If a 41.16 project initially estimated to be below the cost and planning 41.17 fee limits of this subdivision has its cost or planning fees 41.18 revised so that the limits are exceeded, the project must be 41.19 referred to the board for designer selection even if a primary 41.20 designer has already been selected. In this event, the board 41.21 may, without conducting interviews, elect to retain the 41.22 previously selected designer if it determines that the interests 41.23 of the state are best served by that decision and shall notify 41.24 the commissioner of its determination. 41.25 Sec. 44. Minnesota Statutes 2002, section 16B.35, 41.26 subdivision 1, is amended to read: 41.27 Subdivision 1. [PERCENT OF APPROPRIATIONS FOR ART.] An 41.28 appropriation for the construction or alteration of any state 41.29 building may contain an amount not to exceed the lesser of 41.30 $100,000 or one percent of the total appropriation for the 41.31 building for the acquisition of works of art, excluding 41.32 landscaping, which may be an integral part of the building or 41.33 its grounds, attached to the building or grounds or capable of 41.34 being displayed in other state buildings. If the appropriation 41.35 for works of art is limited by the $100,000 cap in this section, 41.36 the appropriation for the construction or alteration of the 42.1 building must be reduced to reflect the reduced amount that will 42.2 be spent on works of art. Money used for this purpose is 42.3 available only for the acquisition of works of art to be 42.4 exhibited in areas of a building or its grounds accessible, on a 42.5 regular basis, to members of the public. No more than ten 42.6 percent of the total amount available each fiscal year under 42.7 this subdivision may be used for administrative expenses, either 42.8 by the commissioner of administration or by any other entity to 42.9 whom the commissioner delegates administrative authority. For 42.10 the purposes of this section "state building" means a building 42.11 the construction or alteration of which is paid for wholly or in 42.12 part by the state. 42.13 Sec. 45. Minnesota Statutes 2002, section 16B.465, 42.14 subdivision 1a, is amended to read: 42.15 Subd. 1a. [CREATION.] Except as provided in subdivision 4, 42.16 the commissioner, through the state information infrastructure, 42.17 shall arrange for the provision of voice, data, video, and other 42.18 telecommunications transmission services to state agencies. The 42.19 state information infrastructure may also serve educational 42.20 institutions, including public schools as defined in section 42.21 120A.05, subdivisions 9, 11, 13, and 17, nonpublic, church or 42.22 religious organization schools that provide instruction in 42.23 compliance with sections 120A.22, 120A.24, and 120A.41, and 42.24 private colleges; public corporations; Indian tribal 42.25 governments;andstate political subdivisions; and public 42.26 noncommercial educational television broadcast stations as 42.27 defined in section 129D.12, subdivision 2. It is not a 42.28 telephone company for purposes of chapter 237. The commissioner 42.29 may purchase, own, or lease any telecommunications network 42.30 facilities or equipment after first seeking bids or proposals 42.31 and having determined that the private sector cannot, will not, 42.32 or is unable to provide these services, facilities, or equipment 42.33 as bid or proposed in a reasonable or timely fashion consistent 42.34 with policy set forth in this section. The commissioner shall 42.35 not resell or sublease any services or facilities to nonpublic 42.36 entities except to serve private schools and colleges. The 43.1 commissioner has the responsibility for planning, development, 43.2 and operations of the state information infrastructure in order 43.3 to provide cost-effective telecommunications transmission 43.4 services to state information infrastructure users consistent 43.5 with the policy set forth in this section. 43.6 Sec. 46. Minnesota Statutes 2002, section 16B.465, 43.7 subdivision 7, is amended to read: 43.8 Subd. 7. [EXEMPTION.] The system is exempt from the 43.9 five-year limitation on contracts set by sections 16C.05, 43.10 subdivision 2, paragraph(a), clause (5)(b), 16C.08, 43.11 subdivision 3, clause(7)(5), and 16C.09, clause(6)(5). 43.12 [EFFECTIVE DATE.] This section is effective the day 43.13 following final enactment. 43.14 Sec. 47. Minnesota Statutes 2002, section 16B.47, is 43.15 amended to read: 43.16 16B.47 [MICROGRAPHICS.] 43.17 The commissionershallmay provide micrographics services 43.18 and products to meet agency needs. Within available resources, 43.19 the commissioner may also provide micrographic services to 43.20 political subdivisions. Agency plans and programs for 43.21 micrographics must be submitted to and receive the approval of 43.22 the commissioner prior to implementation. Upon the 43.23 commissioner's approval, subsidiary or independent microfilm 43.24 operations may be implemented in other state agencies. The 43.25 commissioner may direct that copies of official state documents 43.26 be distributed to official state depositories on microfilm. 43.27 [EFFECTIVE DATE.] This section is effective the day 43.28 following final enactment. 43.29 Sec. 48. Minnesota Statutes 2002, section 16B.48, 43.30 subdivision 2, is amended to read: 43.31 Subd. 2. [PURPOSE OF FUNDS.] Money in the state treasury 43.32 credited to the general services revolving fund and money that 43.33 is deposited in the fund is appropriated annually to the 43.34 commissioner for the following purposes: 43.35 (1) to operate a central store and equipment service; 43.36 (2)to operate a central duplication and printing service;44.1(3)to operate the central mailing service, including 44.2 purchasing postage and related items and refunding postage 44.3 deposits; 44.4(4)(3) to operate a documents service as prescribed by 44.5 section 16B.51; 44.6(5)(4) to provide services for the maintenance, operation, 44.7 and upkeep of buildings and grounds managed by the commissioner 44.8 of administration; 44.9(6)(5) to operate a materials handling service, including 44.10 interagency mail and product delivery, solid waste removal, 44.11 courier service, equipment rental, and vehicle and equipment 44.12 maintenance; 44.13(7)(6) to provide analytical, statistical, and 44.14 organizational development services to state agencies, local 44.15 units of government, metropolitan and regional agencies, and 44.16 school districts; 44.17(8)(7) to operate a records center and provide 44.18 micrographics products and services; and 44.19(9)(8) to perform services for any other agency. Money 44.20 may be expended for this purpose only when directed by the 44.21 governor. The agency receiving the services shall reimburse the 44.22 fund for their cost, and the commissioner shall make the 44.23 appropriate transfers when requested. The term "services" as 44.24 used in this clause means compensation paid officers and 44.25 employees of the state government; supplies, materials, 44.26 equipment, and other articles and things used by or furnished to 44.27 an agency; and utility services and other services for the 44.28 maintenance, operation, and upkeep of buildings and offices of 44.29 the state government. 44.30 [EFFECTIVE DATE.] This section is effective the day 44.31 following final enactment. 44.32 Sec. 49. Minnesota Statutes 2002, section 16B.49, is 44.33 amended to read: 44.34 16B.49 [CENTRAL MAILING SYSTEM.] 44.35 The commissionershallmay maintain and operate for state 44.36 agencies, departments, institutions, and offices a central mail 45.1 handling unit. Official, outgoing mail for units in St. Paul 45.2mustmay be required to be delivered unstamped to the unit. The 45.3 unitshallmay also operate an interoffice mail distribution 45.4 system. The department may add personnel and acquire equipment 45.5 that may be necessary to operate the unit efficiently and 45.6 cost-effectively. Account must be kept of the postage required 45.7 on that mail, which is then a proper charge against the agency 45.8 delivering the mail. To provide funds for the payment of 45.9 postage, each agencyshallmay be required to make advance 45.10 payments to the commissioner sufficient to cover its postage 45.11 obligations for at least 60 days. For purposes of this section, 45.12 the Minnesota state colleges and universities is a state agency. 45.13 [EFFECTIVE DATE.] This section is effective the day 45.14 following final enactment. 45.15 Sec. 50. Minnesota Statutes 2002, section 16B.58, is 45.16 amended by adding a subdivision to read: 45.17 Subd. 6a. [PARKING RESTRICTIONS.] Notwithstanding any law 45.18 to the contrary: 45.19 (1) parking is prohibited in the terraces adjacent to the 45.20 carriage entrance on the south side of the capitol building; 45.21 (2) the ten parking spaces on Aurora Avenue closest to the 45.22 main entrance of the capitol building must be reserved for 45.23 parking by physically disabled persons displaying a certificate 45.24 issued under section 169.345; and 45.25 (3) the remainder of the parking spaces on Aurora Avenue 45.26 must be reserved for the general public during legislative 45.27 session. 45.28 Sec. 51. Minnesota Statutes 2002, section 16B.61, 45.29 subdivision 1a, is amended to read: 45.30 Subd. 1a. [ADMINISTRATION BY COMMISSIONER.] The 45.31 commissioner shall administer and enforce the State Building 45.32 Code as a municipality with respect to public buildings and 45.33 state licensed facilities in the state. The commissioner shall 45.34 establish appropriate permit, plan review, and inspection fees 45.35 for public buildings and state licensed facilities. Fees and 45.36 surcharges for public buildings and state licensed facilities 46.1 must be remitted to the commissioner, who shall deposit them in 46.2 the state treasury for credit to the special revenue fund. 46.3 Municipalities other than the state havinga contractualan 46.4 agreement with the commissioner for code administration and 46.5 enforcement service for public buildings and state licensed 46.6 facilities shall charge their customary fees, including 46.7 surcharge, to be paid directly to thecontractualjurisdiction 46.8 by the applicant seeking authorization to construct a public 46.9 building or a state licensed facility. The commissioner shall 46.10contractsign an agreement with a municipality other than the 46.11 state for plan review, code administration, and code enforcement 46.12 service for public buildings and state licensed facilities in 46.13 thecontractualjurisdiction if the building officials of the 46.14 municipality meet the requirements of section 16B.65 and wish to 46.15 provide those services and if the commissioner determines that 46.16 the municipality has enough adequately trained and qualified 46.17 building inspectors to provide those services for the 46.18 construction project. 46.19 The commissioner may direct the state building official to 46.20 assist a community that has been affected by a natural disaster 46.21 with building evaluation and other activities related to 46.22 building codes. 46.23 Administration and enforcement in a municipality under this 46.24 section must apply any optional provisions of the State Building 46.25 Code adopted by the municipality. A municipality adopting any 46.26 optional code provision shall notify the state building official 46.27 within 30 days of its adoption. 46.28 The commissioner shall administer and enforce the 46.29 provisions of the code relating to elevators statewide, except 46.30 as provided for under section 16B.747, subdivision 3. 46.31 Sec. 52. Minnesota Statutes 2002, section 16B.62, 46.32 subdivision 1, is amended to read: 46.33 Subdivision 1. [MUNICIPAL ENFORCEMENT.] The State Building 46.34 Code applies statewide and supersedes the building code of any 46.35 municipality. A municipality must not by ordinance or through 46.36 development agreement require building code provisions 47.1 regulating components or systems of any residential structure 47.2 that are different from any provision of the State Building 47.3 Code. A municipality may, with the approval of the state 47.4 building official, adopt an ordinance that is more restrictive 47.5 than the State Building Code where geological conditions warrant 47.6 a more restrictive ordinance. A municipality may appeal the 47.7 disapproval of a more restrictive ordinance to the 47.8 commissioner. An appeal under this subdivision is subject to 47.9 the schedule, fee, procedures, cost provisions, and appeal 47.10 rights set out in section 16B.67. The State Building Code does 47.11 not apply to agricultural buildings except with respect to state 47.12 inspections required or rulemaking authorized by sections 47.13 103F.141, 216C.19, subdivision 8, and 326.244. All 47.14 municipalities shall adopt and enforce the State Building Code 47.15 with respect to new construction within their respective 47.16 jurisdictions. 47.17 If a city has adopted or is enforcing the State Building 47.18 Code on June 3, 1977, or determines by ordinance after that date 47.19 to undertake enforcement, it shall enforce the code within the 47.20 city. A city may by ordinance and with permission of the 47.21 township board extend the enforcement of the code to contiguous 47.22 unincorporated territory not more than two miles distant from 47.23 its corporate limits in any direction if the code is not in 47.24 effect in the territory. Where two or more noncontiguous cities 47.25 which have elected to enforce the code have boundaries less than 47.26 four miles apart, each is authorized to enforce the code on its 47.27 side of a line equidistant between them. Once enforcement 47.28 authority is extended extraterritorially by ordinance, the 47.29 authority may continue to be exercised in the designated 47.30 territory even though another city less than four miles distant 47.31 later elects to enforce the code. After the extension, the city 47.32 may enforce the code in the designated area to the same extent 47.33 as if the property were situated within its corporate limits. 47.34 Enforcement of the code in an extended area outside a 47.35 city's corporate limits includes all rules, laws, and ordinances 47.36 associated with administration of the code. 48.1 A city which, on June 3, 1977, had not adopted the code may 48.2 not commence enforcement of the code within or outside of its 48.3 jurisdiction until it has provided written notice to the 48.4 commissioner, the county auditor, and the town clerk of each 48.5 town in which it intends to enforce the code. A public hearing 48.6 on the proposed enforcement must be held not less than 30 days 48.7 after the notice has been provided. Enforcement of the code by 48.8 the city outside of its jurisdiction commences on the first day 48.9 of January in the year following the notice and hearing. 48.10 Municipalities may provide for the issuance of permits, 48.11 inspection, and enforcement within their jurisdictions by means 48.12 which are convenient, and lawful, including by means of 48.13 contracts with other municipalities pursuant to section 471.59, 48.14 and with qualified individuals. The other municipalities or 48.15 qualified individuals may be reimbursed by retention or 48.16 remission of some or all of the building permit fee collected or 48.17 by other means. In areas of the state where inspection and 48.18 enforcement is unavailable from qualified employees of 48.19 municipalities, the commissioner shall train and designate 48.20 individuals available to carry out inspection and enforcement on 48.21 a fee basis. Nothing in this section prohibits a municipality 48.22 from adopting ordinances relating to zoning, subdivision, or 48.23 planning unless the ordinance conflicts with a provision of the 48.24 State Building Code that regulates components or systems of any 48.25 residential structure. 48.26 Sec. 53. [16C.045] [REPORTING OF VIOLATIONS] 48.27 A state employee who discovers evidence of violation of 48.28 laws or rules governing state contracts is encouraged to report 48.29 the violation or suspected violation to the employee's 48.30 supervisor, the commissioner or the commissioner's designee, or 48.31 the legislative auditor. The legislative auditor must report to 48.32 the legislative coordinating commission if there are multiple 48.33 complaints about the same agency. The auditor's report to the 48.34 legislative coordinating commission under this section must 48.35 disclose only the number and type of violations alleged. An 48.36 employee making a good faith report under this section is 49.1 covered by section 181.932, prohibiting the employer from 49.2 discriminating against the employee. 49.3 [EFFECTIVE DATE.] This section is effective the day 49.4 following final enactment. 49.5 Sec. 54. Minnesota Statutes 2002, section 16C.05, 49.6 subdivision 2, is amended to read: 49.7 Subd. 2. [CREATION AND VALIDITY OF CONTRACTS.] (a) A 49.8 contract is not valid and the state is not bound by it and no 49.9 agency, without the prior written approval of the commissioner, 49.10 may authorize work to begin on it unless: 49.11 (1) it has first been executed by the head of the agency or 49.12 a delegate who is a party to the contract; 49.13 (2) it has been approved by the commissioner; and 49.14 (3)it has been approved by the attorney general or a49.15delegate as to form and execution;49.16(4)the accounting system shows anobligation in an expense49.17budget orencumbrance for the amount of the contract liability;49.18and. 49.19(5)(b) The combined contract and amendmentsshallmust not 49.20 exceed five years without specific, written approval by the 49.21 commissioner according to established policy, procedures, and 49.22 standards, or unless otherwise provided for by law. The term of 49.23 the original contract must not exceed two years unless the 49.24 commissioner determines that a longer duration is in the best 49.25 interest of the state. Before approving a contract amendment or 49.26 extension, the commissioner must determine that: (1) the goods 49.27 or services to be obtained under the amendment or extension are 49.28 substantially similar to those in the original contract; and (2) 49.29 the contracting agency has demonstrated that the benefits to the 49.30 agency of full and open competition do not justify the time and 49.31 expense of a separate solicitation for the goods or services 49.32 included in the contract amendment or extension. When the 49.33 commissioner approves a contract amendment or extension, the 49.34 commissioner must post a summary of the approval on the 49.35 department's Web site for at least 60 days. The summary must 49.36 include the contract number, agency name, vendor, and the dollar 50.1 amount of the contract amendment or extension. 50.2(b)(c) Grants, interagency agreements, purchase orders, 50.3 work orders, and annual plans need not, in the discretion of the 50.4 commissioner and attorney general, require the signature of the 50.5 commissioner and/or the attorney general. A signature is not 50.6 required for work orders and amendments to work orders related 50.7 to department of transportation contracts. Bond purchase 50.8 agreements by the Minnesota public facilities authority do not 50.9 require the approval of the commissioner. 50.10(c)(d) A fully executed copy of every contract, amendments 50.11 to the contract, and performance evaluations relating to the 50.12 contract must be kept on file at the contracting agency for a 50.13 time equal to that specified for contract vendors and other 50.14 parties in subdivision 5. 50.15 (e) No action may be maintained by a contractor against an 50.16 employee or agency who discloses information about a current or 50.17 former contractor in a performance evaluation, including 50.18 performance evaluations required under section 16C.08, 50.19 subdivision 4a, unless the contractor demonstrates by clear and 50.20 convincing evidence that: 50.21 (1) the information was false and defamatory; 50.22 (2) the employee or agency knew or should have known the 50.23 information was false and acted with malicious intent to injure 50.24 the current or former contractor; and 50.25 (3) the information was acted upon in a manner that caused 50.26 harm to the current or former contractor. 50.27 [EFFECTIVE DATE.] This section is effective the day 50.28 following final enactment. 50.29 Sec. 55. Minnesota Statutes 2002, section 16C.08, 50.30 subdivision 2, is amended to read: 50.31 Subd. 2. [DUTIES OF CONTRACTING AGENCY.] (a) Before an 50.32 agency may seek approval of a professional or technical services 50.33 contract valued in excess of $5,000, it mustcertify to the50.34commissioner thatprovide the following: 50.35 (1) a description of how the proposed contract or amendment 50.36 is necessary and reasonable to advance the statutory mission of 51.1 the agency; 51.2 (2) a description of the agency's plan to notify firms or 51.3 individuals who may be available to perform the services called 51.4 for in the solicitation; and 51.5 (3) a description of the performance measures or other 51.6 tools that will be used to monitor and evaluate contract 51.7 performance. 51.8 (b) In addition to the information in paragraph (a), 51.9 clauses (1) to (3), the agency must certify that: 51.10 (1)no current state employee is able and available to51.11perform the services called for by the contract;51.12(2)the normal competitive bidding mechanisms will not 51.13 provide for adequate performance of the services; 51.14(3) the contractor has certified that the product of the51.15services will be original in character;51.16(4)(2) reasonable effortswerewill be made to publicize 51.17 the availability of the contract to the public; 51.18(5) the agency has received, reviewed, and accepted a51.19detailed work plan from the contractor for performance under the51.20contract, if applicable;51.21(6)(3) the agencyhas developed,will develop andfully51.22intends toimplement,a written plan providing for the 51.23 assignment of specific agency personnel to a monitoring and 51.24 liaison function, the periodic review of interim reports or 51.25 other indications of past performance, and the ultimate 51.26 utilization of the final product of the services;and51.27(7)(4) the agency will not allow the contractor to begin 51.28 work before the contract is fully executed unless an exception 51.29 has been approved by the commissioner and funds are fully 51.30 encumbered.; 51.31 (5) the contract will not establish an employment 51.32 relationship between the state or the agency and any persons 51.33 performing under the contract; and 51.34 (6) in the event the results of the contract work will be 51.35 carried out or continued by state employees upon completion of 51.36 the contract, the contractor is required to include state 52.1 employees in development and training, to the extent necessary 52.2 to ensure that after completion of the contract, state employees 52.3 can perform any ongoing work related to the same function. 52.4 (c) A contract establishes an employment relationship for 52.5 purposes of paragraph (b), clause (5), if, under federal laws 52.6 governing the distinction between an employee and an independent 52.7 contractor, a person would be considered an employee. 52.8 [EFFECTIVE DATE.] This section is effective the day 52.9 following final enactment. 52.10 Sec. 56. Minnesota Statutes 2002, section 16C.08, 52.11 subdivision 3, is amended to read: 52.12 Subd. 3. [PROCEDURE FOR PROFESSIONAL OR TECHNICAL SERVICES 52.13 CONTRACTS.] Before approving a proposed contract for 52.14 professional or technical services, the commissioner must 52.15 determine, at least, that: 52.16 (1) all provisions of subdivision 2 and section 16C.16 have 52.17 been verified or complied with; 52.18 (2) the agency has demonstrated that the work to be 52.19 performed under the contract is necessary to the agency's 52.20 achievement of its statutory responsibilities and there is 52.21 statutory authority to enter into the contract; 52.22 (3)the contract will not establish an employment52.23relationship between the state or the agency and any persons52.24performing under the contract;52.25(4)the contractor and agents are not employees of the 52.26 state; 52.27(5) no agency has previously performed or contracted for52.28the performance of tasks which would be substantially duplicated52.29under the proposed contract;52.30(6)(4) the contracting agency has specified a satisfactory 52.31 method of evaluating and using the results of the work to be 52.32 performed; and 52.33(7)(5) the combined contract and amendments will not 52.34 exceed five years, unless otherwise provided for by law. The 52.35 term of the original contract must not exceed two years unless 52.36 the commissioner determines that a longer duration is in the 53.1 best interest of the state. 53.2 [EFFECTIVE DATE.] This section is effective the day 53.3 following final enactment. 53.4 Sec. 57. Minnesota Statutes 2002, section 16C.08, 53.5 subdivision 4, is amended to read: 53.6 Subd. 4. [REPORTS.] (a) The commissioner shall submit to 53.7 the governor, the chairs of the house ways and means and senate 53.8 finance committees, and the legislative reference library a 53.9 yearly listing of all contracts for professional or technical 53.10 services executed. The report must identify the contractor, 53.11 contract amount, duration, and services to be provided. The 53.12 commissioner shall also issue yearly reports summarizing the 53.13 contract review activities of the department by fiscal year. 53.14 (b) The fiscal year report must be submitted by September 1 53.15 of each year and must: 53.16 (1) be sorted by agency and by contractor; 53.17 (2) show the aggregate value of contracts issued by each 53.18 agency and issued to each contractor; 53.19 (3) distinguish between contracts that are being issued for 53.20 the first time and contracts that are being extended; 53.21 (4) state the termination date of each contract;and53.22 (5) identify services by commodity code, including topics 53.23 such as contracts for training, contracts for research and 53.24 opinions, and contracts for computer systems; and 53.25 (6) identify which contracts were awarded without following 53.26 the solicitation process in this chapter because it was 53.27 determined that there was only a single source for the services. 53.28 (c) Within 30 days of final completion of a contract over 53.29$40,000$50,000 covered by this subdivision, the head of the 53.30 agency entering into the contract must submit a one-page report 53.31 to the commissioner who must submit a copy to the legislative 53.32 reference library. The report must: 53.33 (1) summarize the purpose of the contract, including why it 53.34 was necessary to enter into a contract; 53.35 (2) state the amount spent on the contract;and53.36 (3)explain why this amount was a cost-effective way to54.1enable the agency to provide its services or products better or54.2more efficientlybe accompanied by the performance evaluation 54.3 prepared in accordance with subdivision 4a; and 54.4 (4) if the contract was awarded without following the 54.5 solicitation process in this chapter because it was determined 54.6 that there was only a single source for the services, explain 54.7 why the agency determined there was only a single source for the 54.8 services. 54.9 [EFFECTIVE DATE.] This section is effective the day 54.10 following final enactment. 54.11 Sec. 58. Minnesota Statutes 2002, section 16C.08, is 54.12 amended by adding a subdivision to read: 54.13 Subd. 4a. [PERFORMANCE EVALUATION.] Upon completion of a 54.14 professional or technical services contract, an agency entering 54.15 into the contract must complete a written performance evaluation 54.16 of the work done under the contract. The evaluation must 54.17 include an appraisal of the contractor's timeliness, quality, 54.18 cost, and overall performance in meeting the terms and 54.19 objectives of the contract, and evaluate the extent to which the 54.20 contract was a cost-effective way to enable the agency to 54.21 provide its services or products better or more efficiently. 54.22 Contractors may request copies of evaluations prepared under 54.23 this subdivision and may respond in writing. Contractor 54.24 responses must be maintained with the contract file. 54.25 [EFFECTIVE DATE.] This section is effective the day 54.26 following final enactment. 54.27 Sec. 59. Minnesota Statutes 2002, section 16C.09, is 54.28 amended to read: 54.29 16C.09 [PROCEDURE FOR SERVICE CONTRACTS.] 54.30(a)Before entering into or approving a service contract, 54.31 the commissioner must determine, at least, that: 54.32 (1)no current state employee is able and available to54.33perform the services called for by the contract;54.34(2)the work to be performed under the contract is 54.35 necessary to the agency's achievement of its statutory 54.36 responsibilities and there is statutory authority to enter into 55.1 the contract; 55.2(3)(2) the contract will not establish an employment 55.3 relationship between the state or the agency and any persons 55.4 performing under the contract; 55.5(4)(3) the contractor and agents are not employees of the 55.6 state; 55.7(5)(4) the contracting agency has specified a satisfactory 55.8 method of evaluating and using the results of the work to be 55.9 performed; and 55.10(6)(5) the combined contract and amendments will not 55.11 exceed five years without specific, written approval by the 55.12 commissioner according to established policy, procedures, and 55.13 standards, or unless otherwise provided for by law. The term of 55.14 the original contract must not exceed two years, unless the 55.15 commissioner determines that a longer duration is in the best 55.16 interest of the state. 55.17(b) For purposes of paragraph (a), clause (1), employees55.18are available if qualified and:55.19(1) are already doing the work in question; or55.20(2) are on layoff status in classes that can do the work in55.21question.55.22An employee is not available if the employee is doing other55.23work, is retired, or has decided not to do the work in question.55.24 [EFFECTIVE DATE.] This section is effective the day 55.25 following final enactment. 55.26 Sec. 60. Minnesota Statutes 2002, section 16C.10, 55.27 subdivision 1, is amended to read: 55.28 Subdivision 1. [SINGLE SOURCE.] The solicitation process 55.29 described in this chapter is not required when there is clearly 55.30 and legitimately only a single source for the goods and services 55.31 and the commissioner determines that the price has been fairly 55.32 and reasonably established. Authority under this subdivision 55.33 may not be used for a contract for public relations or public 55.34 education services. A contract for these services may be 55.35 entered into only after issuing a request for proposals or a 55.36 request for bids. 56.1 Sec. 61. Minnesota Statutes 2002, section 16C.10, 56.2 subdivision 5, is amended to read: 56.3 Subd. 5. [SPECIFIC PURCHASES.] The solicitation process 56.4 described in this chapter is not required for acquisition of the 56.5 following: 56.6 (1) merchandise for resale purchased under policies 56.7 determined by the commissioner; 56.8 (2) farm and garden products which, as determined by the 56.9 commissioner, may be purchased at the prevailing market price on 56.10 the date of sale; 56.11 (3) goods and services from the Minnesota correctional 56.12 facilities; 56.13 (4) goods and services from rehabilitation facilities and 56.14sheltered workshopsextended employment providers that are 56.15 certified by the commissioner of economic security; 56.16 (5) goods and services for use by a community-based 56.17 facility operated by the commissioner of human services; 56.18 (6) goods purchased at auction or when submitting a sealed 56.19 bid at auction provided that before authorizing such an action, 56.20 the commissioner consult with the requesting agency to determine 56.21 a fair and reasonable value for the goods considering factors 56.22 including, but not limited to, costs associated with submitting 56.23 a bid, travel, transportation, and storage. This fair and 56.24 reasonable value must represent the limit of the state's bid; 56.25 and 56.26 (7) utility services where no competition exists or where 56.27 rates are fixed by law or ordinance. 56.28 Sec. 62. Minnesota Statutes 2002, section 16C.10, 56.29 subdivision 7, is amended to read: 56.30 Subd. 7. [REVERSE AUCTION.] (a) For the purpose of this 56.31 subdivision, "reverse auction" means a purchasing process in 56.32 which vendors compete to provide goods or services at the lowest 56.33 selling price in an open and interactive environment. 56.34 (b) The provisions of section 16C.06, subdivisions 2 and 3, 56.35 do not apply when the commissioner determines that a reverse 56.36 auction is the appropriate purchasing process. Notwithstanding 57.1 any contrary provision of sections 16C.26 to 16C.28, reverse 57.2 auctions are competitive bids and bid responses to reverse 57.3 auctions may be accepted instead of sealed bids, when the 57.4 commissioner determines that a reverse auction is the 57.5 appropriate purchasing process. 57.6 Sec. 63. Minnesota Statutes 2002, section 16C.15, is 57.7 amended to read: 57.8 16C.15 [SHELTERED WORKSHOPS AND SERVICES WORK ACTIVITY57.9PROGRAMSREHABILITATION FACILITIES AND EXTENDED EMPLOYMENT 57.10 PROVIDERS.] 57.11 The commissioner, in consultation with the commissioner of 57.12 economic security, shall prepare a list containing products and 57.13 services ofstate-certifiedcertified rehabilitation facilities,57.14sheltered workshops, and work activity programsand extended 57.15 employment providers as described in chapter 268A for 57.16 acquisition by state agencies and institutions. 57.17 Sec. 64. Minnesota Statutes 2002, section 16C.16, 57.18 subdivision 7, is amended to read: 57.19 Subd. 7. [ECONOMICALLY DISADVANTAGED AREAS.] (a) Except as 57.20 otherwise provided in paragraph (b), the commissioner may award 57.21 up to a six percent preference in the amount bid on state 57.22 procurement to small businesses located in an economically 57.23 disadvantaged area. 57.24 (b) The commissioner may award up to a four percent 57.25 preference in the amount bid on state construction to small 57.26 businesses located in an economically disadvantaged area. 57.27 (c) A business is located in an economically disadvantaged 57.28 area if: 57.29 (1) the owner resides in or the business is located in a 57.30 county in which the median income for married couples is less 57.31 than 70 percent of the state median income for married couples; 57.32 (2) the owner resides in or the business is located in an 57.33 area designated a labor surplus area by the United States 57.34 Department of Labor; or 57.35 (3) the business is a certified rehabilitation facility or 57.36work activity programextended employment provider as described 58.1 in chapter 268A. 58.2 (d) The commissioner may designate one or more areas 58.3 designated as targeted neighborhoods under section 469.202 or as 58.4 enterprise zones under section 469.167 as economically 58.5 disadvantaged areas for purposes of this subdivision if the 58.6 commissioner determines that this designation would further the 58.7 purposes of this section. If the owner of a small business 58.8 resides or is employed in a designated area, the small business 58.9 is eligible for any preference provided under this subdivision. 58.10 (e) The department of revenue shall gather data necessary 58.11 to make the determinations required by paragraph (c), clause 58.12 (1), and shall annually certify counties that qualify under 58.13 paragraph (c), clause (1). An area designated a labor surplus 58.14 area retains that status for 120 days after certified small 58.15 businesses in the area are notified of the termination of the 58.16 designation by the United States Department of Labor. 58.17 Sec. 65. Minnesota Statutes 2002, section 16D.08, 58.18 subdivision 2, is amended to read: 58.19 Subd. 2. [POWERS.] (a) In addition to the collection 58.20 remedies available to private collection agencies in this state, 58.21 the commissioner, with legal assistance from the attorney 58.22 general, may utilize any statutory authority granted to a 58.23 referring agency for purposes of collecting debt owed to that 58.24 referring agency. The commissioner may also delegate to the 58.25 enterprise the tax collection remedies in sections 270.06, 58.26 clauses (7) and (17), excluding the power to subpoena witnesses; 58.27 270.66; 270.69, excluding subdivisions 7 and 13; 270.70, 58.28 excluding subdivision 14; 270.7001 to 270.72; and 290.92, 58.29 subdivision 23, except that a continuous wage levy under section 58.30 290.92, subdivision 23, is only effective for 70 days, unless no 58.31 competing wage garnishments, executions, or levies are served 58.32 within the 70-day period, in which case a wage levy is 58.33 continuous until a competing garnishment, execution, or levy is 58.34 served in the second or a succeeding 70-day period, in which 58.35 case a continuous wage levy is effective for the remainder of 58.36 that period. A debtor who qualifies for cancellation of 59.1 collection costs under section 16D.11, subdivision 3, clause 59.2 (1), can apply to the commissioner for reduction or release of a 59.3 continuous wage levy, if the debtor establishes that the debtor 59.4 needs all or a portion of the wages being levied upon to pay for 59.5 essential living expenses, such as food, clothing, shelter, 59.6 medical care, or expenses necessary for maintaining employment. 59.7 The commissioner's determination not to reduce or release a 59.8 continuous wage levy is appealable to district court. The word 59.9 "tax" or "taxes" when used in the tax collection statutes listed 59.10 in this subdivision also means debts referred under this chapter. 59.11 (b) For debts other than state taxes,and child support, or59.12student loans, before any of the tax collection remedies listed59.13in this subdivision can be used, except for the remedies in59.14section 270.06, clauses (7) and (17),if the referring agency 59.15 has not already obtained a judgment or filed a lien,the59.16commissioner must first obtain a judgment against the debtor.59.17For student loans when the referring agency has not obtained a59.18judgment or filed a lien,before using the tax collection 59.19 remedies listed in this subdivision, except for the remedies in 59.20 section 270.06, clauses (7) and (17), the commissioner shall 59.21 give the debtor3090 days' notice in writing, whichmayshall 59.22 be servedin any manner permitted in section 270.68 for service59.23of a summons and complaintby both first class mail and 59.24 certified mail to the debtor's address as provided by the 59.25 referring agency. The notice must advise the debtor of the 59.26 debtor's right to request that the commissioner commence a court 59.27 action, and that if no such request is made within3090 days 59.28 after service of the notice, the commissioner may use these tax 59.29 collection remedies. If a timely request is made, the 59.30 commissioner shall obtain a judgment before using these tax 59.31 collection remedies. 59.32 [EFFECTIVE DATE.] This section is effective the day 59.33 following final enactment for all debts referred, whether 59.34 referred prior to or on or after the day following final 59.35 enactment. 59.36 Sec. 66. Minnesota Statutes 2002, section 16D.10, is 60.1 amended to read: 60.2 16D.10 [CASE REVIEWER.] 60.3 Subdivision 1. [DUTIES.] The commissioner shall make a 60.4 case reviewer available to debtors. The reviewer must be 60.5 available to answer a debtor's questions concerning the 60.6 collection process and to review the collection activity taken. 60.7 If the reviewer reasonably believes that the particular action 60.8 being taken is unreasonable or unfair, the reviewer may make 60.9 recommendations to the commissioner in regard to the collection 60.10 action. 60.11 Subd. 2. [AUTHORITY TO ISSUE DEBTOR ASSISTANCE ORDER.] On 60.12 application filed by a debtor with the case reviewer, in the 60.13 form, manner, and in the time prescribed by the commissioner, 60.14 and after thorough investigation, the case reviewer may issue a 60.15 debtor assistance order if, in the determination of the case 60.16 reviewer, the manner in which the state debt collection laws are 60.17 being administered is creating or will create an unjust and 60.18 inequitable result for the debtor. Debtor assistance orders 60.19 shall be governed by the provisions relating to taxpayer 60.20 assistance orders under section 270.273. 60.21 Subd. 3. [TRANSFER OF DUTIES TO TAXPAYER RIGHTS ADVOCATE.] 60.22 All duties and authority of the case reviewer under subdivisions 60.23 1 and 2 are transferred to the taxpayer rights advocate. 60.24 [EFFECTIVE DATE.] This section is effective the day 60.25 following final enactment. 60.26 Sec. 67. Minnesota Statutes 2002, section 16E.01, 60.27 subdivision 3, is amended to read: 60.28 Subd. 3. [DUTIES.] (a) The office shall: 60.29 (1) coordinate the efficient and effective use of available 60.30 federal, state, local, and private resources to develop 60.31 statewide information and communications technology and its 60.32 infrastructure; 60.33 (2) review state agency and intergovernmental information 60.34 and communications systems development efforts involving state 60.35 or intergovernmental funding, including federal funding, provide 60.36 information to the legislature regarding projects reviewed, and 61.1 recommend projects for inclusion in the governor's budget under 61.2 section 16A.11; 61.3 (3) encourage cooperation and collaboration among state and 61.4 local governments in developing intergovernmental communication 61.5 and information systems, and define the structure and 61.6 responsibilities of the information policy council; 61.7 (4) cooperate and collaborate with the legislative and 61.8 judicial branches in the development of information and 61.9 communications systems in those branches; 61.10 (5) continue the development of North Star, the state's 61.11 official comprehensive online service and information 61.12 initiative; 61.13 (6) promote and collaborate with the state's agencies in 61.14 the state's transition to an effectively competitive 61.15 telecommunications market; 61.16 (7) collaborate with entities carrying out education and 61.17 lifelong learning initiatives to assist Minnesotans in 61.18 developing technical literacy and obtaining access to ongoing 61.19 learning resources; 61.20 (8) promote and coordinate public information access and 61.21 network initiatives, consistent with chapter 13, to connect 61.22 Minnesota's citizens and communities to each other, to their 61.23 governments, and to the world; 61.24 (9) promote and coordinate electronic commerce initiatives 61.25 to ensure that Minnesota businesses and citizens can 61.26 successfully compete in the global economy; 61.27 (10) promote and coordinate the regular and periodic 61.28 reinvestment in the core information and communications 61.29 technology infrastructure so that state and local government 61.30 agencies can effectively and efficiently serve their customers; 61.31 (11) facilitate the cooperative development of standards 61.32 for information systems, electronic data practices and privacy, 61.33 and electronic commerce among international, national, state, 61.34 and local public and private organizations; and 61.35 (12) work with others to avoid unnecessary duplication of 61.36 existing services provided by other public and private 62.1 organizations while building on the existing governmental, 62.2 educational, business, health care, and economic development 62.3 infrastructures. 62.4 (b) The commissioner of administration in consultation with 62.5 the commissioner of finance may determine that it is 62.6 cost-effective for agencies to develop and use shared 62.7 information and communications technology systems for the 62.8 delivery of electronic government services. This determination 62.9 may be made if an agency proposes a new system that duplicates 62.10 an existing system, a system in development, or a system being 62.11 proposed by another agency. The commissioner of administration 62.12 shall establish reimbursement rates in cooperation with the 62.13 commissioner of finance to be billed to agencies and other 62.14 governmental entities sufficient to cover the actual 62.15 development, operating, maintenance, and administrative costs of 62.16 the shared systems. The methodology for billing may include 62.17 depositing such funds in the technology enterprise fund, the use 62.18 of interagency agreements, or other means as allowed by law. 62.19 Sec. 68. Minnesota Statutes 2002, section 16E.07, 62.20 subdivision 9, is amended to read: 62.21 Subd. 9. [AGGREGATION OF SERVICE DEMAND.] The office shall 62.22 identify opportunities to aggregate demand for technical 62.23 services required by government units for online activities and 62.24 may contract with governmental or nongovernmental entities to 62.25 provide services. These contracts are not subject to the 62.26 requirements of chapters 16B and 16C, except sections 16C.04, 62.2716C.07,16C.08, and 16C.09. 62.28 [EFFECTIVE DATE.] This section is effective the day 62.29 following final enactment. 62.30 Sec. 69. Minnesota Statutes 2002, section 16E.09, 62.31 subdivision 1, is amended to read: 62.32 Subdivision 1. [FUND ESTABLISHED.] A technology enterprise 62.33 fund is established. Money deposited in the fund is 62.34 appropriated to the commissioner of administration for the 62.35 purpose of funding technology projects among government entities 62.36 that promote cooperation, innovation, and shared use of 63.1 technology and technology standards, and electronic government 63.2 services. Savings generated by information technology and 63.3 communications projects or purchases, including rebates, 63.4 refunds, discounts, or other savings generated from aggregated 63.5 purchases of software, services, or technology products, may be 63.6 deposited in the fund upon agreement by the commissioner of 63.7 administration and the executive of the government entity 63.8 generating the funds. The commissioner of administration may 63.9 apply for and accept grants, contributions, or other gifts from 63.10 the federal government and other public or private sources for 63.11 deposit into the fund. The commissioner may accept paid 63.12 advertising for departmental publications, media productions, 63.13 state Web pages, and other informational materials. Unless 63.14 otherwise provided in statute, advertising revenues received 63.15 shall first be used to defray costs associated with production 63.16 and promotion of advertising activities and the remaining 63.17 balance shall be deposited into the fund. The commissioner may 63.18 not accept paid advertising from an elected official or 63.19 candidate for elected office. The transfer of funds between 63.20 state agencies is subject to the approval of the commissioner of 63.21 finance. The commissioner of finance shall notify the chairs of 63.22 the committees funding the affected state agencies of the 63.23 transfers. Funds are available until June 30, 2005. 63.24 Sec. 70. Minnesota Statutes 2002, section 43A.047, is 63.25 amended to read: 63.26 43A.047 [CONTRACTED SERVICES.] 63.27(a) Executive agencies, including the Minnesota state63.28colleges and universities system, must demonstrate that they63.29cannot use available staff before hiring outside consultants or63.30services. If use of consultants is necessary, agencies are63.31encouraged to negotiate contracts that will involve permanent63.32staff, so as to upgrade and maximize training of state employees.63.33(b)If agencies reduce operating budgets, agencies must 63.34 give priority to reducing spending on professional and technical 63.35 service contracts before laying off permanent employees. 63.36 Sec. 71. [43A.311] [DRUG PURCHASING PROGRAM.] 64.1 The commissioner of employee relations, in conjunction with 64.2 other state agencies, shall evaluate whether participation in a 64.3 multistate or multiagency drug purchasing program can reduce 64.4 costs or improve the operations of the drug benefit programs 64.5 administered by the department and other state agencies. The 64.6 commissioner and other state agencies may enter into a contract 64.7 with a vendor or other states for purposes of participating in a 64.8 multistate or multiagency drug purchasing program. 64.9 Sec. 72. Minnesota Statutes 2002, section 69.772, 64.10 subdivision 2, is amended to read: 64.11 Subd. 2. [DETERMINATION OF ACCRUED LIABILITY.] Each 64.12 firefighters' relief association which pays a service pension 64.13 when a retiring firefighter meets the minimum requirements for 64.14 entitlement to a service pension specified in section 424A.02 64.15 and which in its articles of incorporation or bylaws requires 64.16 service credit for a period of service of at least 20 years of 64.17 active service for a totally nonforfeitable service pension 64.18 shall determine the accrued liability of the special fund of the 64.19 firefighters' relief association relative to each activeor64.20deferredmember of the relief association, calculated 64.21 individually using the following table: 64.22 Cumulative Accrued 64.23 Year Liability 64.24 ............. ............. 64.25 1 $ 60 64.26 2 124 64.27 3 190 64.28 4 260 64.29 5 334 64.30 6 410 64.31 7 492 64.32 8 576 64.33 9 666 64.34 10 760 64.35 11 858 64.36 12 962 65.1 13 1070 65.2 14 1184 65.3 15 1304 65.4 16 1428 65.5 17 1560 65.6 18 1698 65.7 19 1844 65.8 20 2000 65.9 21 and thereafter 100 additional 65.10 per year 65.11 As set forth in the table the accrued liability for each 65.12 memberor deferred memberof the relief association corresponds 65.13 to the cumulative years of active service to the credit of the 65.14 member. The accrued liability of the special fund for each 65.15 activeor deferredmember is determined by multiplying the 65.16 accrued liability from the chart by the ratio of the lump sum 65.17 service pension amount currently provided for in the bylaws of 65.18 the relief association to a service pension of $100 per year of 65.19 service. If a member has fractional service as of December 31, 65.20 the figure for service credit to be used for the determination 65.21 of accrued liability pursuant to this section shall be rounded 65.22 to the nearest full year of service credit. The total accrued 65.23 liability of the special fund as of December 31 shall be the sum 65.24 of the accrued liability attributable to each activeor deferred65.25 member of the relief association. 65.26 To the extent that the state auditor considers it to be 65.27 necessary or practical, the state auditor may specify and issue 65.28 procedures, forms, or mathematical tables for use in performing 65.29 the calculations of the accrued liability for deferred members 65.30 pursuant to this subdivision. 65.31 Sec. 73. Minnesota Statutes 2002, section 115A.929, is 65.32 amended to read: 65.33 115A.929 [FEES; ACCOUNTING.] 65.34 Each political subdivision that provides for solid waste 65.35 management shall account for all revenue collected from waste 65.36 management fees, together with interest earned on revenue from 66.1 the fees, separately from other revenue collected by the 66.2 political subdivision and shall report revenue collected from 66.3 the fees and use of the revenue separately from other revenue 66.4 and use of revenue in any required financial report or audit. 66.5 Each political subdivision must file with the director, on or 66.6 before June 30 annually, the separate report of all revenue 66.7 collected from waste management fees, together with interest on 66.8 revenue from the fees, for the previous year. For the purposes 66.9 of this section, "waste management fees" means: 66.10 (1) all fees, charges, and surcharges collected under 66.11 sections 115A.919, 115A.921, and 115A.923; 66.12 (2) all tipping fees collected at waste management 66.13 facilities owned or operated by the political subdivision; 66.14 (3) all charges imposed by the political subdivision for 66.15 waste collection and management services; and 66.16 (4) any other fees, charges, or surcharges imposed on waste 66.17 or for the purpose of waste management, whether collected 66.18 directly from generators or indirectly through property taxes or 66.19 as part of utility or other charges for services provided by the 66.20 political subdivision. 66.21 Sec. 74. Minnesota Statutes 2002, section 116J.8771, is 66.22 amended to read: 66.23 116J.8771 [WAIVER.] 66.24 The capital access program is exempt from section 16C.05, 66.25 subdivision 2, paragraph(a), clause (5)(b). 66.26 [EFFECTIVE DATE.] This section is effective the day 66.27 following final enactment. 66.28 Sec. 75. Minnesota Statutes 2002, section 179A.03, 66.29 subdivision 7, is amended to read: 66.30 Subd. 7. [ESSENTIAL EMPLOYEE.] "Essential employee" means 66.31 firefighters, peace officers subject to licensure under sections 66.32 626.84 to 626.863, 911 system and police and fire department 66.33 public safety dispatchers, guards at correctional facilities, 66.34 confidential employees, supervisory employees, assistant county 66.35 attorneys, assistant city attorneys, principals, and assistant 66.36 principals. However, for state employees, "essential employee" 67.1 means all employees in law enforcement, health care 67.2 professionals, health care nonprofessionals, correctional 67.3 guards, professional engineering, and supervisory collective 67.4 bargaining units, irrespective of severance, and no other 67.5 employees. For University of Minnesota employees, "essential 67.6 employee" means all employees in law enforcement, nursing 67.7 professional and supervisory units, irrespective of severance, 67.8 and no other employees. "Firefighters" means salaried employees 67.9 of a fire department whose duties include, directly or 67.10 indirectly, controlling, extinguishing, preventing, detecting, 67.11 or investigating fires. Employees for whom the state court 67.12 administrator is the negotiating employer are not essential 67.13 employees. 67.14 [EFFECTIVE DATE.] This section is effective July 1, 2003. 67.15 Sec. 76. Minnesota Statutes 2002, section 192.501, 67.16 subdivision 2, is amended to read: 67.17 Subd. 2. [TUITION AND TEXTBOOK REIMBURSEMENT GRANT 67.18 PROGRAM.] (a) The adjutant general shall establish a program to 67.19 provide tuition and textbook reimbursement grants to eligible 67.20 members of the Minnesota national guard within the limitations 67.21 of this subdivision. 67.22 (b) Eligibility is limited to a member of the national 67.23 guard who: 67.24 (1) is serving satisfactorily as defined by the adjutant 67.25 general; 67.26 (2) is attending a post-secondary educational institution, 67.27 as defined by section 136A.15, subdivision 6, including a 67.28 vocational or technical school operated or regulated by this 67.29 state or another state or province; and 67.30 (3) provides proof of satisfactory completion of 67.31 coursework, as defined by the adjutant general. 67.32 In addition, if a member of the Minnesota national guard is 67.33 killed in the line of state active service or federally funded 67.34 state active service, as defined in section 190.05, subdivisions 67.35 5a and 5b, the member's surviving spouse, and any surviving 67.36 dependent who has not yet reached 24 years of age, is eligible 68.1 for a tuition and textbook reimbursement grant. 68.2 The adjutant general may, within the limitations of this 68.3 paragraph and other applicable laws, determine additional 68.4 eligibility criteria for the grant, and must specify the 68.5 criteria in department regulations and publish changes as 68.6 necessary. 68.7 (c) The amount of a tuition and textbook reimbursement 68.8 grant must be specified on a schedule as determined and 68.9 published in department regulations by the adjutant general, but 68.10 is limited to a maximum of an amount equal to the greater of: 68.11 (1) 80 percent of the cost of tuition for lower division 68.12 programs in the college of liberal arts at the twin cities 68.13 campus of the University of Minnesota in the most recent 68.14 academic year; or 68.15 (2) 80 percent of the cost of tuition for the program in 68.16 which the person is enrolled at that Minnesota public 68.17 institution, or if that public institution is outside the state 68.18 of Minnesota, for the cost of a comparable program at the 68.19 University of Minnesota, except that in the case of a survivor 68.20 as defined in paragraph (b), the amount of the tuition and 68.21 textbook reimbursement grant for coursework satisfactorily 68.22 completed by the person is limited to 100 percent of the cost of 68.23 tuition for post-secondary courses at a Minnesota public 68.24 educational institution. 68.25 Paragraph (b) notwithstanding, a person is no longer 68.26 eligible for a grant under this subdivision once the person has 68.27 received grants under this subdivision for the equivalent of 208 68.28 quarter credits or 144 semester credits of coursework. 68.29 (d) Tuition and textbook reimbursement grants received 68.30 under this subdivision may not be considered by the Minnesota 68.31 higher education services office or by any other state board, 68.32 commission, or entity in determining a person's eligibility for 68.33 a scholarship or grant-in-aid under sections 136A.095 to 68.34 136A.1311. 68.35 (e) If a member fails to complete a term of enlistment 68.36 during which a tuition and textbook reimbursement grant was 69.1 paid, the adjutant general may seek to recoup a prorated amount 69.2 as determined by the adjutant general. 69.3(f) The adjutant general shall maintain records and report69.4any findings to the legislature by March 1, 2003, on the impact69.5of increasing the reimbursement amounts under paragraph (c)69.6during the period July 1, 2001, through December 31, 2002.69.7(g) This paragraph, paragraph (f), and the amendments made69.8by Laws 2001, First Special Session chapter 10 to paragraph (c)69.9expire June 30, 2003.69.10 Sec. 77. Minnesota Statutes 2002, section 197.608, is 69.11 amended to read: 69.12 197.608 [VETERANS SERVICE OFFICE GRANT PROGRAM.] 69.13 Subdivision 1. [GRANT PROGRAM.] A veterans service office 69.14 grant program is established to be administered by the 69.15 commissioner of veterans affairs consisting of grants to 69.16 counties to enable them to enhance the effectiveness of their 69.17 veterans service offices. 69.18 Subd. 2. [RULE DEVELOPMENT.] The commissionerof veterans69.19affairsshall consult with the Minnesota association of county 69.20 veterans service officers in formulating rules to implement the 69.21 grant program. 69.22 Subd. 2a. [GRANT CYCLE.] Counties may become eligible to 69.23 receive grants on a three-year rotating basis according to a 69.24 schedule to be developed and announced in advance by the 69.25 commissioner. The schedule must list no more than one-third of 69.26 the counties in each year of the three-year cycle. A county may 69.27 be considered for a grant only in the year of its listing in the 69.28 schedule. 69.29 Subd. 3. [ELIGIBILITY.] (a) To be eligible for a grant 69.30 under this program, a county must:69.31(1)employ a county veterans service officer as authorized 69.32 by sections 197.60 and 197.606, who is certified to serve in 69.33 this position by the commissionerof veterans affairs;. 69.34(2) submit a written plan for the proposed expenditures to69.35enhance the functioning of the county veterans service office in69.36accordance with the program rules; and70.1(3) apply for the grant according to procedures to be70.2established for this program by the commissioner and receive70.3written approval from the commissioner for the grant in advance70.4of making the proposed expenditures.70.5 (b) A county that employs a newly hired county veterans 70.6 service officer who is serving an initial probationary period 70.7 and who has not been certified by the commissioner is eligible 70.8 to receive a grant under subdivision 2a. 70.9 (c) Except for the situation described in paragraph (b), a 70.10 county whose veterans service officer does not receive 70.11 certification during any year of the three-year cycle is not 70.12 eligible to receive a grant during the remainder of that cycle 70.13 or the next three-year cycle. 70.14 Subd. 4. [GRANTAPPLICATIONPROCESS.] (a)A grant70.15application must be submitted to the department of veterans70.16affairs according to procedures to be established by the70.17commissioner. The grant application must include a specific70.18description of the plan for enhancing the operation of the70.19county veterans service office.The commissioner shall determine 70.20 the process for awarding grants. A grant may be used only for 70.21 the purpose of enhancing the operations of the county veterans 70.22 service office. 70.23 (b) The commissioner shall provide a list of qualifying 70.24 uses for grant expenditures as developed in subdivision 5 and 70.25 shall approve a grantapplicationonlyif it meets the criteria70.26for eligibility as established and announced by the commissioner70.27 for a qualifying use and if there are sufficient funds remaining 70.28 in the grant program to cover the full amount of the grant.The70.29commissioner may request modification of a plan. If the70.30commissioner rejects a grant application, written reasons for70.31the rejection must be provided to the applicant county and the70.32county may modify the application and resubmit it.70.33 Subd. 5. [QUALIFYING USES.] The commissionerof veterans70.34affairsshalldetermine whether the plan specified in the grant70.35application will enable the applicant county to enhance the70.36effectiveness of its county veterans office.71.1Notwithstanding subdivision 3, clause (1), a county may71.2apply for and use a grant for the training and education71.3required by the commissioner for a newly employed county71.4veterans service officer's certificate, or for the continuing71.5education of other staffconsult with the Minnesota association 71.6 of county veterans service officers in developing a list of 71.7 qualifying uses for grants awarded under this program. 71.8 Subd. 6. [GRANT AMOUNT.] The amount of each grant must be 71.9 determined by the commissionerof veterans affairs, and may not 71.10 exceedthe lesser of:71.11(1) the amount specified in the grant application to be71.12expended on the plan for enhancing the effectiveness of the71.13county veterans service office; or71.14(2) the county's share of the total funds available under71.15the program, determined in the following manner:71.16 (i) $1,400, if the county's veteran population is less than 71.17 1,000, the county's grant share shall be $2,000; 71.18 (ii) $2,800, if the county's veteran population is 1,000 or 71.19 more but less than 3,000, the county's grant share shall be71.20$4,000; 71.21 (iii) $4,200, if the county's veteran population is 3,000 71.22 or more but less then 10,000, the county's grant share shall be71.23$6,000; or 71.24 (iv) $5,600, if the county's veteran population is 10,000 71.25 or more, the county's grant share shall be $8,000. 71.26In any year, only one-half of the counties in each of the71.27four veteran population categories (i) to (iv) may be awarded71.28grants. Grants shall be awarded on a first-come first-served71.29basis to counties submitting applications which meet the71.30commissioner's criteria as established in the rules. Any county71.31not receiving a grant in any given year shall receive priority71.32consideration for a grant the following year.71.33In any year, after a period of time to be determined by the71.34commissioner, any amounts remaining from undistributed county71.35grant shares may be reallocated to the other counties which have71.36submitted qualifying application.72.1 The veteran population of each county shall be determined 72.2 by the figure supplied by the United States Department of 72.3 Veterans Affairs, as adopted by the commissioner. 72.4 Subd. 7. [RECAPTURE.] If a county fails to use the grant 72.5 for the qualified use approved by the commissioner, the 72.6 commissioner shall seek recovery of the grant from the county 72.7 and the county must repay the grant amount. 72.8 Sec. 78. Minnesota Statutes 2002, section 240.03, is 72.9 amended to read: 72.10 240.03 [COMMISSION POWERS AND DUTIES.] 72.11 The commission has the following powers and duties: 72.12 (1) to regulate horse racing in Minnesota to ensure that it 72.13 is conducted in the public interest; 72.14 (2) to issue licenses as provided in this chapter; 72.15 (3) to enforce all laws and rules governing horse racing; 72.16 (4) to collect and distribute all taxes provided for in 72.17 this chapter; 72.18 (5) to conduct necessary investigations and inquiries and 72.19 compel the submission of information, documents, and records it 72.20 deems necessary to carry out its duties; 72.21 (6) to supervise the conduct of pari-mutuel betting on 72.22 horse racing; 72.23 (7) to employ and supervise personnel under this chapter; 72.24 (8) to determine the number of racing days to be held in 72.25 the state and at each licensed racetrack;and72.26 (9) to take all necessary steps to ensure the integrity of 72.27 racing in Minnesota.; and 72.28 (10) to impose fees on the racing and card playing 72.29 industries sufficient to recover the operating costs of the 72.30 commission with the approval of the legislature according to 72.31 section 16A.1283. Notwithstanding section 16A.1283, when the 72.32 legislature is not in session, the commissioner of finance may 72.33 grant interim approval for any new fees or adjustments to 72.34 existing fees that are not statutorily specified, until such 72.35 time as the legislature reconvenes and acts upon the new fees or 72.36 adjustments. As part of its biennial budget request, the 73.1 commission must propose changes to its fees that will be 73.2 sufficient to recover the operating costs of the commission. 73.3 Sec. 79. Minnesota Statutes 2002, section 240.10, is 73.4 amended to read: 73.5 240.10 [LICENSE FEES.] 73.6 The fee for a class A license is $10,000 per year. The fee 73.7 for a class B license is $100 for each assigned racing day on 73.8 which racing is actually conducted, and $50 for each day on 73.9 which simulcasting is authorized and actually takes place, plus 73.10 $10,000 per year if the class B license includes authorization 73.11 to operate a card club. The fee for a class D license is $50 73.12 for each assigned racing day on which racing is actually 73.13 conducted. Fees imposed on class B and class D licenses must be 73.14 paid to the commission at a time and in a manner as provided by 73.15 rule of the commission. 73.16 The commission shall by rule establish an annual license 73.17 fee for each occupation it licenses under section 240.08 but no 73.18 annual fee for a class C license may exceed $100. 73.19License fee payments received must be paid by the73.20commission to the state treasurer for deposit in the general73.21fund.73.22 Sec. 80. Minnesota Statutes 2002, section 240.15, 73.23 subdivision 6, is amended to read: 73.24 Subd. 6. [DISPOSITION OF PROCEEDS; ACCOUNT.] The 73.25 commission shall distribute all money received under this 73.26 section, and all money received from license fees and fines it 73.27 collects,as follows:according to this subdivision. All money 73.28 designated for deposit in the Minnesota breeders fund must be 73.29 paid into that fund for distribution under section 240.18 except 73.30 that all money generated by full racing card simulcasts must be 73.31 distributed as provided in section 240.18, subdivisions 2, 73.32 paragraph (d), clauses (1), (2), and (3); and 3. Revenue from 73.33 an admissions tax imposed under subdivision 1 must be paid to 73.34 the local unit of government at whose request it was imposed, at 73.35 times and in a manner the commission determines.All other73.36revenuesTaxes received under this sectionby the commission,74.1and all license fees, fines, and other revenue it receives,and 74.2 fines collected under section 240.22 must be paid to the state 74.3 treasurer for deposit in the general fund. All revenues from 74.4 licenses and other fees imposed by the commission must be 74.5 deposited in the state treasury and credited to a racing and 74.6 card playing regulation account in the special revenue fund. 74.7 Receipts in this account are available for the operations of the 74.8 commission up to the amount authorized in biennial 74.9 appropriations from the legislature. 74.10 Sec. 81. Minnesota Statutes 2002, section 240.155, 74.11 subdivision 1, is amended to read: 74.12 Subdivision 1. [REIMBURSEMENT ACCOUNT CREDIT.] Money 74.13 received by the commission as reimbursement for the costs of 74.14 services provided byassistantveterinarians, stewards, and 74.15 medical testing of horses must be deposited in the state 74.16 treasury and credited to a racing reimbursement account, except 74.17 as provided under subdivision 2. Receipts are appropriated to 74.18 the commission to pay the costs of providing the services. 74.19 Sec. 82. Minnesota Statutes 2002, section 240A.03, 74.20 subdivision 10, is amended to read: 74.21 Subd. 10. [USE AGREEMENTS AND FEES.] The commission may 74.22 lease, license, or enter into agreements and may fix, alter, 74.23 charge, and collect rentals, fees, and charges to persons for 74.24 the use, occupation, and availability of part or all of any 74.25 premises, property, or facilities under its ownership, 74.26 operation, or control.Fees charged by the commission are not74.27subject to section 16A.1285.The commission may also impose 74.28 other fees it deems appropriate with the approval of the 74.29 legislature according to section 16A.1283. Notwithstanding 74.30 section 16A.1283, when the legislature is not in session, the 74.31 commissioner of finance may grant interim approval of the fees, 74.32 until such time as the legislature reconvenes and acts upon the 74.33 fees. Revenues generated by the commission under this section 74.34 must be sufficient to offset the biennial appropriations it 74.35 receives from the legislature and must be deposited to the state 74.36 treasury and credited to the general fund. A use agreement may 75.1 provide that the other contracting party has exclusive use of 75.2 the premises at the times agreed upon. As part of its biennial 75.3 budget request, the commission must propose changes to its fees 75.4 that will be sufficient to recover the direct appropriation to 75.5 the commission. 75.6 Sec. 83. Minnesota Statutes 2002, section 240A.03, 75.7 subdivision 15, is amended to read: 75.8 Subd. 15. [ADVERTISING.] The commission may accept paid 75.9 advertising in its publications. Funds received from 75.10 advertisingare annually appropriated to the commission for its75.11publications. The commission must annually report the amount of75.12funds received under this subdivision to the chair of the house75.13of representatives ways and means and senate finance75.14committeesmust be deposited to the state treasury and credited 75.15 to the general fund. 75.16 Sec. 84. Minnesota Statutes 2002, section 240A.04, is 75.17 amended to read: 75.18 240A.04 [PROMOTION AND DEVELOPMENT OF AMATEUR SPORTS.] 75.19 In addition to the powers and duties granted under section 75.20 240A.03, the commissionshallmay: 75.21 (1) promote the development of olympic training centers; 75.22 (2) promote physical fitness by promoting participation in 75.23 sports; 75.24 (3) develop, foster, and coordinate physical fitness 75.25 services and programs; 75.26 (4) sponsor amateur sport workshops, clinics, and 75.27 conferences; 75.28 (5) provide recognition for outstanding developments, 75.29 achievements, and contributions to amateur sports; 75.30 (6) stimulate and promote amateur sport research; 75.31 (7) collect, disseminate, and communicate amateur sport 75.32 information; 75.33 (8) promote amateur sport and physical fitness programs in 75.34 schools and local communities; 75.35 (9) develop programs to promote personal health and 75.36 physical fitness by participation in amateur sports in 76.1 cooperation with medical, dental, sports medicine, and similar 76.2 professional societies; 76.3 (10) promote the development of recreational amateur sport 76.4 opportunities and activities in the state, including the means 76.5 of facilitating acquisition, financing, construction, and 76.6 rehabilitation of sports facilities for the holding of amateur 76.7 sporting events; 76.8 (11) promote national and international amateur sport 76.9 competitions and events; 76.10 (12) sanction or sponsor amateur sport competition; 76.11 (13) take membership in regional or national amateur sports 76.12 associations or organizations; and 76.13 (14) promote the mainstreaming and normalization of people 76.14 with physical disabilities and visual and hearing impairments in 76.15 amateur sports. 76.16 Sec. 85. Minnesota Statutes 2002, section 240A.06, 76.17 subdivision 1, is amended to read: 76.18 Subdivision 1. [SPONSORSHIP REQUIRED.] The commission 76.19shallmay sponsor and sanction a series of statewide amateur 76.20 athletic games patterned after the winter and summer Olympic 76.21 Games, with variations as required by facilities, equipment, and 76.22 expertise, and as necessary to include people with physical 76.23 disabilities and visual and hearing impairments. The games may 76.24 be held annually beginning in 1989, if money and facilities are 76.25 available, unless the time of the games would conflict with 76.26 other sporting events as the commission determines. 76.27 Sec. 86. Minnesota Statutes 2002, section 256B.435, 76.28 subdivision 2a, is amended to read: 76.29 Subd. 2a. [DURATION AND TERMINATION OF CONTRACTS.] (a) All 76.30 contracts entered into under this section are for a term of one 76.31 year. Either party may terminate this contract at any time 76.32 without cause by providing 90 calendar days' advance written 76.33 notice to the other party. Notwithstanding section 16C.05, 76.34 subdivisions 2, paragraph(a)(b), and 5, if neither party 76.35 provides written notice of termination, the contract shall be 76.36 renegotiated for additional one-year terms or the terms of the 77.1 existing contract will be extended for one year. The provisions 77.2 of the contract shall be renegotiated annually by the parties 77.3 prior to the expiration date of the contract. The parties may 77.4 voluntarily renegotiate the terms of the contract at any time by 77.5 mutual agreement. 77.6 (b) If a nursing facility fails to comply with the terms of 77.7 a contract, the commissioner shall provide reasonable notice 77.8 regarding the breach of contract and a reasonable opportunity 77.9 for the facility to come into compliance. If the facility fails 77.10 to come into compliance or to remain in compliance, the 77.11 commissioner may terminate the contract. If a contract is 77.12 terminated, provisions of section 256B.48, subdivision 1a, shall 77.13 apply. 77.14 [EFFECTIVE DATE.] This section is effective the day 77.15 following final enactment. 77.16 Sec. 87. Minnesota Statutes 2002, section 268.186, is 77.17 amended to read: 77.18 268.186 [RECORDS.] 77.19 (a) Each employer shall keep true and accurate records for 77.20 the periods of time and containing the information the 77.21 commissioner may require. For the purpose of administering this 77.22 chapter, the commissioner has the power to examine, or cause to 77.23 be supplied or copied, any books, correspondence, papers, 77.24 records, or memoranda that are relevant, whether the books, 77.25 correspondence, papers, records, or memoranda are the property 77.26 of or in the possession of the employer or any other person at 77.27 any reasonable time and as often as may be necessary. 77.28 (b) The commissioner may make summaries, compilations, 77.29 photographs, duplications, or reproductions of any records, or 77.30 reports that the commissioner considers advisable for the 77.31 preservation of the information contained therein. Any 77.32 summaries, compilations, photographs, duplications, or 77.33 reproductions shall be admissible in any proceeding under this 77.34 chapter.Regardless of any restrictions contained in section77.3516B.50,The commissioner may duplicate records, reports, 77.36 summaries, compilations, instructions, determinations, or any 78.1 other written or recorded matter pertaining to the 78.2 administration of this chapter. 78.3 (c) Regardless of any law to the contrary, the commissioner 78.4 may provide for the destruction of any records, reports, or 78.5 reproductions thereof, or other papers, that are more than two 78.6 years old, and that are no longer necessary for determining 78.7 employer liability or an applicant's unemployment benefit rights 78.8 or for the administration of this chapter, including any 78.9 required audit. The commissioner may provide for the 78.10 destruction or disposition of any record, report, or other paper 78.11 that has been photographed, duplicated, or reproduced. 78.12 [EFFECTIVE DATE.] This section is effective the day 78.13 following final enactment. 78.14 Sec. 88. Minnesota Statutes 2002, section 270.052, is 78.15 amended to read: 78.16 270.052 [AGREEMENT WITH INTERNAL REVENUE SERVICE.] 78.17 Pursuant to section 270B.12, the commissioner may enter 78.18 into an agreement with the Internal Revenue Service to identify 78.19 taxpayers who have refunds due from the department of revenue 78.20 and liabilities owing to the Internal Revenue Service. In 78.21 accordance with the procedures established in the agreement, the 78.22 Internal Revenue Service may levy against the refunds to be paid 78.23 by the department of revenue. For each refund levied upon, the 78.24 commissioner shall first deduct from the refund a fee of $20, 78.25 and then remit the refund or the amount of the levy, whichever 78.26 is less, to the Internal Revenue Service. The proceeds of fees 78.27 shall be deposited into the department of revenue recapture 78.28 revolving fund under section 270A.07, subdivision 1. 78.29 [EFFECTIVE DATE.] This section is effective the day 78.30 following final enactment. 78.31 Sec. 89. Minnesota Statutes 2002, section 270.44, is 78.32 amended to read: 78.33 270.44 [CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.] 78.34The board may establish reasonable fees or charges for78.35courses, examinations or materials, the proceeds of which shall78.36be used to finance the activities and operation of the board.79.1 The board shall charge the following fees: 79.2 (1) $105 for a senior accredited Minnesota assessor 79.3 license; 79.4 (2) $80 for an accredited Minnesota assessor license; 79.5 (3) $65 for a certified Minnesota assessor specialist 79.6 license; 79.7 (4) $55 for a certified Minnesota assessor license; 79.8 (5) $50 for a course challenge examination; 79.9 (6) $35 for grading a form appraisal; 79.10 (7) $60 for grading a narrative appraisal; 79.11 (8) $30 for a reinstatement fee; 79.12 (9) $25 for a record retention fee; 79.13 (10) $20 for an educational transcript; and 79.14 (11) $30 for all retests of board-sponsored educational 79.15 courses. 79.16 [EFFECTIVE DATE.] This section is effective for license 79.17 terms beginning on or after July 1, 2004, and for all other fees 79.18 imposed on or after July 1, 2004. 79.19 Sec. 90. Minnesota Statutes 2002, section 270A.07, 79.20 subdivision 1, is amended to read: 79.21 Subdivision 1. [NOTIFICATION REQUIREMENT.] Any claimant 79.22 agency, seeking collection of a debt through setoff against a 79.23 refund due, shall submit to the commissioner information 79.24 indicating the amount of each debt and information identifying 79.25 the debtor, as required by section 270A.04, subdivision 3. 79.26 For each setoff of a debt against a refund due, the 79.27 commissioner shall charge a fee of$10$15. The proceeds of 79.28 fees shall be allocated by depositing$2.55$4 of each$10$15 79.29 fee collected into a department of revenue recapture revolving 79.30 fund and depositing the remaining balance into the general 79.31 fund. The sums deposited into the revolving fund are 79.32 appropriated to the commissioner for the purpose of 79.33 administering the Revenue Recapture Act. 79.34 The claimant agency shall notify the commissioner when a 79.35 debt has been satisfied or reduced by at least $200 within 30 79.36 days after satisfaction or reduction. 80.1 [EFFECTIVE DATE.] This section is effective for refund 80.2 setoffs after June 30, 2003. 80.3 Sec. 91. Minnesota Statutes 2002, section 306.95, is 80.4 amended to read: 80.5 306.95 [DUTIES OF THE COUNTY AUDITOR.] 80.6 Subdivision 1. [NOTIFICATIONOF STATE AUDITOR.] Any county 80.7 auditor finding evidence of violations of this chapter when 80.8 reviewing reports or bonds filed by any person, firm, 80.9 partnership, association, or corporation operating a cemetery, 80.10 mausoleum, or columbarium must notify thestate auditor's office80.11 county attorney in a timely manner of such finding. 80.12 Subd. 2. [ANNUAL LETTER.] Every county auditor must file 80.13 an annual letter by May 31 with thestate auditor's office80.14 county attorney disclosing whether the county auditor has 80.15 detected any indications of violations of this chapter in the 80.16 reports or bonds which were filed or should have been filed. If 80.17 the county auditor has not detected from the information 80.18 supplied to the county auditor any such indications, that fact 80.19 must be reported to thestate auditorcounty attorney in the 80.20 annual letter. 80.21 Sec. 92. [326.992] [BOND REQUIREMENT; GAS, HEATING, 80.22 VENTILATION, AIR CONDITIONING, REFRIGERATION (G/HVACR) 80.23 CONTRACTORS.] 80.24 (a) A person contracting to do gas, heating, ventilation, 80.25 cooling, air conditioning, fuel burning, or refrigeration work 80.26 must give bond to the state in the amount of $25,000 for all 80.27 work entered into within the state. The bond must be for the 80.28 benefit of persons suffering financial loss by reason of the 80.29 contractor's failure to comply with the requirements of the 80.30 State Mechanical Code. A bond given to the state must be filed 80.31 with the commissioner of administration and is in lieu of all 80.32 other bonds to any political subdivision required for work 80.33 covered by this section. The bond must be written by a 80.34 corporate surety licensed to do business in the state. 80.35 (b) The commissioner of administration may charge each 80.36 person giving bond under this section an annual bond filing fee 81.1 of $25. The money must be deposited in the state government 81.2 special revenue fund and is appropriated to the commissioner to 81.3 cover the cost of administering the bond program. 81.4 Sec. 93. Minnesota Statutes 2002, section 327A.01, 81.5 subdivision 2, is amended to read: 81.6 Subd. 2. [BUILDING STANDARDS.] "Building standards" means 81.7 the materials and installation standards of the State Building 81.8 Code, adopted by the commissioner of administration pursuant to 81.9 sections 16B.59 to 16B.75,that isin effect at the time of the 81.10 construction or remodeling. 81.11 Sec. 94. Minnesota Statutes 2002, section 349.12, is 81.12 amended by adding a subdivision to read: 81.13 Subd. 11a. [DISTRIBUTOR SALESPERSON.] "Distributor 81.14 salesperson" means a person who in any manner receives orders 81.15 for gambling equipment or who solicits a licensed, exempt, or 81.16 excluded organization to purchase gambling equipment from a 81.17 licensed distributor. 81.18 Sec. 95. Minnesota Statutes 2002, section 349.12, 81.19 subdivision 25, is amended to read: 81.20 Subd. 25. [LAWFUL PURPOSE.] (a) "Lawful purpose" means one 81.21 or more of the following: 81.22 (1) any expenditure by or contribution to a 501(c)(3) or 81.23 festival organization, as defined in subdivision 15a, provided 81.24 that the organization and expenditure or contribution are in 81.25 conformity with standards prescribed by the board under section 81.26 349.154, which standards must apply to both types of 81.27 organizations in the same manner and to the same extent; 81.28 (2) a contribution to an individual or family suffering 81.29 from poverty, homelessness, or physical or mental disability, 81.30 which is used to relieve the effects of that poverty, 81.31 homelessness, or disability; 81.32 (3) a contribution to an individual for treatment for 81.33 delayed posttraumatic stress syndrome or a contribution to a 81.34 program recognized by the Minnesota department of human services 81.35 for the education, prevention, or treatment of compulsive 81.36 gambling; 82.1 (4) a contribution to or expenditure on a public or private 82.2 nonprofit educational institution registered with or accredited 82.3 by this state or any other state; 82.4 (5) a contribution to a scholarship fund for defraying the 82.5 cost of education to individuals where the funds are awarded 82.6 through an open and fair selection process; 82.7 (6) activities by an organization or a government entity 82.8 which recognize humanitarian or military service to the United 82.9 States, the state of Minnesota, or a community, subject to rules 82.10 of the board, provided that the rules must not include mileage 82.11 reimbursements in the computation of the per occasion 82.12 reimbursement limit and must impose no aggregate annual limit on 82.13 the amount of reasonable and necessary expenditures made to 82.14 support: 82.15 (i) members of a military marching or color guard unit for 82.16 activities conducted within the state; 82.17 (ii) members of an organization solely for services 82.18 performed by the members at funeral services; or 82.19 (iii) members of military marching, color guard, or honor 82.20 guard units may be reimbursed for participating in color guard, 82.21 honor guard, or marching unit events within the state or states 82.22 contiguous to Minnesota at a per participant rate of up to $35 82.23 per occasion; 82.24 (7) recreational, community, and athletic facilities and 82.25 activities intended primarily for persons under age 21, provided 82.26 that such facilities and activities do not discriminate on the 82.27 basis of gender and the organization complies with section 82.28 349.154; 82.29 (8) payment of local taxes authorized under this chapter, 82.30 taxes imposed by the United States on receipts from lawful 82.31 gambling, the taxes imposed by section 297E.02, subdivisions 1, 82.32 4, 5, and 6, and the tax imposed on unrelated business income by 82.33 section 290.05, subdivision 3; 82.34 (9) payment of real estate taxes and assessments on 82.35 permitted gambling premises wholly owned by the licensed 82.36 organization paying the taxes, or wholly leased by a licensed 83.1 veterans organization under a national charter recognized under 83.2 section 501(c)(19) of the Internal Revenue Code, not to exceed: 83.3 (i) for premises used for bingo, the amount that an 83.4 organization may expend under board rules on rent for bingo; and 83.5 (ii) $35,000 per year for premises used for other forms of 83.6 lawful gambling; 83.7 (10) a contribution to the United States, this state or any 83.8 of its political subdivisions, or any agency or instrumentality 83.9 thereof other than a direct contribution to a law enforcement or 83.10 prosecutorial agency; 83.11 (11) a contribution to or expenditure by a nonprofit 83.12 organization which is a church or body of communicants gathered 83.13 in common membership for mutual support and edification in 83.14 piety, worship, or religious observances; 83.15 (12) payment of the reasonable costs of an audit required 83.16 in section 297E.06, subdivision 4, provided the annual audit is 83.17 filed in a timely manner with the department of revenue; 83.18 (13) a contribution to or expenditure on a wildlife 83.19 management project that benefits the public at-large, provided 83.20 that the state agency with authority over that wildlife 83.21 management project approves the project before the contribution 83.22 or expenditure is made; 83.23 (14) expenditures, approved by the commissioner of natural 83.24 resources, by an organization for grooming and maintaining 83.25 snowmobile trails and all-terrain vehicle trails that are (1) 83.26 grant-in-aid trails established under section 85.019, or (2) 83.27 other trails open to public use, including purchase or lease of 83.28 equipment for this purpose; or 83.29 (15) conducting nutritional programs, food shelves, and 83.30 congregate dining programs primarily for persons who are age 62 83.31 or older or disabled; 83.32 (16) a contribution to a community arts organization, or an 83.33 expenditure to sponsor arts programs in the community, including 83.34 but not limited to visual, literary, performing, or musical 83.35 arts; 83.36 (17) payment of heat, water, sanitation, telephone, and 84.1 other utility bills for a building owned or leased by, and used 84.2 as the primary headquarters of, a veterans organization;or84.3 (18) expenditure by a veterans organization of up to $5,000 84.4 in a calendar year in net costs to the organization for meals 84.5 and other membership events, limited to members and spouses, 84.6 held in recognition of military service; or 84.7 (19) payment of fees authorized under this chapter imposed 84.8 by the state of Minnesota to conduct lawful gambling in 84.9 Minnesota. 84.10 (b) Notwithstanding paragraph (a), "lawful purpose" does 84.11 not include: 84.12 (1) any expenditure made or incurred for the purpose of 84.13 influencing the nomination or election of a candidate for public 84.14 office or for the purpose of promoting or defeating a ballot 84.15 question; 84.16 (2) any activity intended to influence an election or a 84.17 governmental decision-making process; 84.18 (3) the erection, acquisition, improvement, expansion, 84.19 repair, or maintenance of real property or capital assets owned 84.20 or leased by an organization, unless the board has first 84.21 specifically authorized the expenditures after finding that (i) 84.22 the real property or capital assets will be used exclusively for 84.23 one or more of the purposes in paragraph (a); (ii) with respect 84.24 to expenditures for repair or maintenance only, that the 84.25 property is or will be used extensively as a meeting place or 84.26 event location by other nonprofit organizations or community or 84.27 service groups and that no rental fee is charged for the use; 84.28 (iii) with respect to expenditures, including a mortgage payment 84.29 or other debt service payment, for erection or acquisition only, 84.30 that the erection or acquisition is necessary to replace with a 84.31 comparable building, a building owned by the organization and 84.32 destroyed or made uninhabitable by fire or natural disaster, 84.33 provided that the expenditure may be only for that part of the 84.34 replacement cost not reimbursed by insurance; (iv) with respect 84.35 to expenditures, including a mortgage payment or other debt 84.36 service payment, for erection or acquisition only, that the 85.1 erection or acquisition is necessary to replace with a 85.2 comparable building a building owned by the organization that 85.3 was acquired from the organization by eminent domain or sold by 85.4 the organization to a purchaser that the organization reasonably 85.5 believed would otherwise have acquired the building by eminent 85.6 domain, provided that the expenditure may be only for that part 85.7 of the replacement cost that exceeds the compensation received 85.8 by the organization for the building being replaced; or (v) with 85.9 respect to an expenditure to bring an existing building into 85.10 compliance with the Americans with Disabilities Act under item 85.11 (ii), an organization has the option to apply the amount of the 85.12 board-approved expenditure to the erection or acquisition of a 85.13 replacement building that is in compliance with the Americans 85.14 with Disabilities Act; 85.15 (4) an expenditure by an organization which is a 85.16 contribution to a parent organization, foundation, or affiliate 85.17 of the contributing organization, if the parent organization, 85.18 foundation, or affiliate has provided to the contributing 85.19 organization within one year of the contribution any money, 85.20 grants, property, or other thing of value; 85.21 (5) a contribution by a licensed organization to another 85.22 licensed organization unless the board has specifically 85.23 authorized the contribution. The board must authorize such a 85.24 contribution when requested to do so by the contributing 85.25 organization unless it makes an affirmative finding that the 85.26 contribution will not be used by the recipient organization for 85.27 one or more of the purposes in paragraph (a); or 85.28 (6) a contribution to a statutory or home rule charter 85.29 city, county, or town by a licensed organization with the 85.30 knowledge that the governmental unit intends to use the 85.31 contribution for a pension or retirement fund. 85.32 Sec. 96. Minnesota Statutes 2002, section 349.151, 85.33 subdivision 4, is amended to read: 85.34 Subd. 4. [POWERS AND DUTIES.] (a) The board has the 85.35 following powers and duties: 85.36 (1) to regulate lawful gambling to ensure it is conducted 86.1 in the public interest; 86.2 (2) to issue licenses to organizations, 86.3 distributors, distributor salespersons, bingo halls, 86.4 manufacturers, and gambling managers; 86.5 (3) to collect and deposit license, permit, and 86.6 registration fees due under this chapter; 86.7 (4) to receive reports required by this chapter and inspect 86.8 all premises, records, books, and other documents of 86.9 organizations, distributors, manufacturers, and bingo halls to 86.10 insure compliance with all applicable laws and rules; 86.11 (5) to make rules authorized by this chapter; 86.12 (6) to register gambling equipment and issue registration 86.13 stamps; 86.14 (7) to provide by rule for the mandatory posting by 86.15 organizations conducting lawful gambling of rules of play and 86.16 the odds and/or house percentage on each form of lawful 86.17 gambling; 86.18 (8) to report annually to the governor and legislature on 86.19 its activities and on recommended changes in the laws governing 86.20 gambling; 86.21 (9) to impose civil penalties of not more than $500 per 86.22 violation on organizations, distributors,employees eligible to86.23make sales on behalf of adistributor salespersons, 86.24 manufacturers, bingo halls, and gambling managers for failure to 86.25 comply with any provision of this chapter or any rule or order 86.26 of the board; 86.27 (10) to issue premises permits to organizations licensed to 86.28 conduct lawful gambling; 86.29 (11) to delegate to the director the authority to issue or 86.30 deny license and premises permit applications and renewals under 86.31 criteria established by the board; 86.32 (12) to suspend or revoke licenses and premises permits of 86.33 organizations, distributors, distributor salespersons, 86.34 manufacturers, bingo halls, or gambling managers as provided in 86.35 this chapter; 86.36 (13) to register employees of organizations licensed to 87.1 conduct lawful gambling; 87.2 (14) to require fingerprints from persons determined by 87.3 board rule to be subject to fingerprinting; 87.4 (15) to delegate to a compliance review group of the board 87.5 the authority to investigate alleged violations, issue consent 87.6 orders, and initiate contested cases on behalf of the board; 87.7 (16) to order organizations, distributors, distributor 87.8 salespersons, manufacturers, bingo halls, and gambling managers 87.9 to take corrective actions; and 87.10 (17) to take all necessary steps to ensure the integrity of 87.11 and public confidence in lawful gambling. 87.12 (b) The board, or director if authorized to act on behalf 87.13 of the board, may by citation assess any organization, 87.14 distributor, employee eligible to make sales on behalf of a 87.15 distributor, manufacturer, bingo hall licensee, or gambling 87.16 manager a civil penalty of not more than $500 per violation for 87.17 a failure to comply with any provision of this chapter or any 87.18 rule adopted or order issued by the board. Any organization, 87.19 distributor, bingo hall licensee, gambling manager, or 87.20 manufacturer assessed a civil penalty under this paragraph may 87.21 request a hearing before the board. Appeals of citations 87.22 imposing a civil penalty are not subject to the provisions of 87.23 the Administrative Procedure Act. 87.24 (c) Allfees andpenalties received by the board must be 87.25 deposited in the general fund. 87.26 (d) All fees imposed by the board under sections 349.16 to 87.27 349.165 must be deposited in the state treasury and credited to 87.28 a lawful gambling regulation account in the special revenue fund. 87.29 Receipts in this account are available for the operations of the 87.30 board up to the amount authorized in biennial appropriations 87.31 from the legislature. 87.32 Sec. 97. Minnesota Statutes 2002, section 349.151, 87.33 subdivision 4b, is amended to read: 87.34 Subd. 4b. [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 87.35 The board may by rule authorize but not require the use of 87.36 pull-tab dispensing devices. 88.1 (b) Rules adopted under paragraph (a): 88.2 (1) must limit the number of pull-tab dispensing devices on 88.3 any permitted premises to three; and 88.4 (2) must limit the use of pull-tab dispensing devices to a 88.5 permitted premises which is (i) a licensed premises for on-sales 88.6 of intoxicating liquor or 3.2 percent malt beverages; or (ii) a 88.7 licensed bingo hall that allows gambling only by persons 18 88.8 years or older. 88.9 (c) Notwithstanding rules adopted under paragraph (b), 88.10 pull-tab dispensing devices may be used in establishments 88.11 licensed for the off-sale of intoxicating liquor, other than 88.12 drugstores and general food stores licensed under section 88.13 340A.405, subdivision 1. 88.14(d) The director may charge a manufacturer a fee of up to88.15$5,000 per pull-tab dispensing device to cover the costs of88.16services provided by an independent testing laboratory to88.17perform testing and analysis of pull-tab dispensing devices.88.18The director shall deposit in a separate account in the state88.19treasury all money the director receives as reimbursement for88.20the costs of services provided by independent testing88.21laboratories that have entered into contracts with the state to88.22perform testing and analysis of pull-tab dispensing devices.88.23Money in the account is appropriated to the director to pay the88.24costs of services under those contracts.88.25 Sec. 98. Minnesota Statutes 2002, section 349.155, 88.26 subdivision 3, is amended to read: 88.27 Subd. 3. [MANDATORY DISQUALIFICATIONS.] (a) In the case of 88.28 licenses for manufacturers, distributors, distributor 88.29 salespersons, bingo halls, and gambling managers, the board may 88.30 not issue or renew a license under this chapter, and shall 88.31 revoke a license under this chapter, if the applicant or 88.32 licensee, or a director, officer, partner, governor, or person 88.33 in a supervisory or management position of the applicant or 88.34 licensee, or an employee eligible to make sales on behalf of the88.35applicant or licensee: 88.36 (1) has ever been convicted of a felony or a crime 89.1 involving gambling; 89.2 (2) has ever been convicted of (i) assault, (ii) a criminal 89.3 violation involving the use of a firearm, or (iii) making 89.4 terroristic threats; 89.5 (3) is or has ever been connected with or engaged in an 89.6 illegal business; 89.7 (4) owes $500 or more in delinquent taxes as defined in 89.8 section 270.72; 89.9 (5) had a sales and use tax permit revoked by the 89.10 commissioner of revenue within the past two years; or 89.11 (6) after demand, has not filed tax returns required by the 89.12 commissioner of revenue. The board may deny or refuse to renew 89.13 a license under this chapter, and may revoke a license under 89.14 this chapter, if any of the conditions in this paragraph are 89.15 applicable to an affiliate or direct or indirect holder of more 89.16 than a five percent financial interest in the applicant or 89.17 licensee. 89.18 (b) In the case of licenses for organizations, the board 89.19 may not issue or renew a license under this chapter, and shall 89.20 revoke a license under this chapter, if the organization, or an 89.21 officer or member of the governing body of the organization: 89.22 (1) has been convicted of a felony or gross misdemeanor 89.23 within the five years before the issuance or renewal of the 89.24 license; 89.25 (2) has ever been convicted of a crime involving gambling; 89.26 or 89.27 (3) has had a license issued by the board or director 89.28 permanently revoked for violation of law or board rule. 89.29 Sec. 99. Minnesota Statutes 2002, section 349.16, 89.30 subdivision 6, is amended to read: 89.31 Subd. 6. [LICENSECLASSIFICATIONSFEES.]The board may89.32issue four classes of organization licenses: a class A license89.33authorizing all forms of lawful gambling; a class B license89.34authorizing all forms of lawful gambling except bingo; a class C89.35license authorizing bingo only, or bingo and pull-tabs if the89.36gross receipts for any combination of bingo and pull-tabs does90.1not exceed $50,000 per year; and a class D license authorizing90.2raffles only.The board shallnot charge a fee for an90.3organizationimpose a fee of $100 for an organization's initial 90.4 license application. There is no charge for a renewal license. 90.5 Sec. 100. Minnesota Statutes 2002, section 349.161, 90.6 subdivision 1, is amended to read: 90.7 Subdivision 1. [PROHIBITED ACTS; LICENSES REQUIRED.] (a) 90.8 No person may: 90.9 (1) sell, offer for sale, or furnish gambling equipment for 90.10 use within the state other than for lawful gambling exempt or 90.11 excluded from licensing, except to an organization licensed for 90.12 lawful gambling; 90.13 (2) sell, offer for sale, or furnish gambling equipment for 90.14 use within the state without having obtained a distributor 90.15 license or a distributor salesperson license under this section; 90.16 (3) sell, offer for sale, or furnish gambling equipment for 90.17 use within the state that is not purchased or obtained from a 90.18 manufacturer or distributor licensed under this chapter; or 90.19 (4) sell, offer for sale, or furnish gambling equipment for 90.20 use within the state that has the same serial number as another 90.21 item of gambling equipment of the same type sold or offered for 90.22 sale or furnished for use in the state by that distributor. 90.23 (b) No licensed distributor salesperson may sell, offer for 90.24 sale, or furnish gambling equipment for use within the state 90.25 without being employed by a licensed distributor or owning a 90.26 distributor license. 90.27 Sec. 101. Minnesota Statutes 2002, section 349.161, 90.28 subdivision 4, is amended to read: 90.29 Subd. 4. [FEES.] (a) Theinitialannual fee for a 90.30 distributor's license is$3,500$6,000.The initial term of a90.31distributor's license is one year. Renewal licenses under this90.32section are valid for two years and the fee for the renewal90.33license is $7,000.90.34 (b) The annual fee for a distributor salesperson license is 90.35 $100. 90.36 Sec. 102. Minnesota Statutes 2002, section 349.161, 91.1 subdivision 5, is amended to read: 91.2 Subd. 5. [PROHIBITION.] (a) No distributor, distributor 91.3 salesperson, or other employee of a distributor, may also be a 91.4 wholesale distributor of alcoholic beverages or an employee of a 91.5 wholesale distributor of alcoholic beverages. 91.6 (b) No distributor, distributor salesperson, or any 91.7 representative, agent, affiliate, or other employee of a 91.8 distributor, may: (1) be involved in the conduct of lawful 91.9 gambling by an organization; (2) keep or assist in the keeping 91.10 of an organization's financial records, accounts, and 91.11 inventories; or (3) prepare or assist in the preparation of tax 91.12 forms and other reporting forms required to be submitted to the 91.13 state by an organization. 91.14 (c) No distributor, distributor salesperson, or any 91.15 representative, agent, affiliate, or other employee of a 91.16 distributor may provide a lessor of gambling premises any 91.17 compensation, gift, gratuity, premium, or other thing of value. 91.18 (d) No distributor, distributor salesperson, or any 91.19 representative, agent, affiliate, or other employee of a 91.20 distributor may participate in any gambling activity at any 91.21 gambling site or premises where gambling equipment purchased 91.22 from that distributor or distributor salesperson is being used 91.23 in the conduct of lawful gambling. 91.24 (e) No distributor, distributor salesperson, or any 91.25 representative, agent, affiliate, or other employee of a 91.26 distributor may alter or modify any gambling equipment, except 91.27 to add a "last ticket sold" prize sticker. 91.28 (f) No distributor, distributor salesperson, or any 91.29 representative, agent, affiliate, or other employee of a 91.30 distributor may: (1) recruit a person to become a gambling 91.31 manager of an organization or identify to an organization a 91.32 person as a candidate to become gambling manager for the 91.33 organization; or (2) identify for an organization a potential 91.34 gambling location. 91.35 (g) No distributor or distributor salesperson may purchase 91.36 gambling equipment for resale to a person for use within the 92.1 state from any person not licensed as a manufacturer under 92.2 section 349.163. 92.3 (h) No distributor or distributor salesperson may sell 92.4 gambling equipment to any person for use in Minnesota other than 92.5 (i) a licensed organization or organization excluded or exempt 92.6 from licensing, or (ii) the governing body of an Indian tribe. 92.7 (i) No distributor or distributor salesperson may sell or 92.8 otherwise provide a pull-tab or tipboard deal with the symbol 92.9 required by section 349.163, subdivision 5, paragraph (h), 92.10 visible on the flare to any person other than in Minnesota to a 92.11 licensed organization or organization exempt from licensing. 92.12 Sec. 103. Minnesota Statutes 2002, section 349.162, 92.13 subdivision 1, is amended to read: 92.14 Subdivision 1. [STAMP REQUIRED.] (a) A distributor may not 92.15 sell, transfer, furnish, or otherwise provide to a person, and 92.16 no person may purchase, borrow, accept, or acquire from a 92.17 distributor gambling equipment for use within the state unless 92.18 the equipment has been registered with the board and has a 92.19 registration stamp affixed, except for gambling equipment not 92.20 stamped by the manufacturer pursuant to section 349.163, 92.21 subdivision 5 or 8.The board shall charge a fee of five cents92.22for each stamp.Each stamp must bear a registration number 92.23 assigned by the board.A distributor or manufacturer is92.24entitled to a refund for unused registration stamps and92.25replacement for registration stamps which are defective or92.26canceled by the distributor or manufacturer.92.27 (b) A manufacturer must return all unused registration 92.28 stamps in its possession to the board by February 1, 1995. No 92.29 manufacturer may possess unaffixed registration stamps after 92.30 February 1, 1995. 92.31 (c) After February 1, 1996, no person may possess any 92.32 unplayed pull-tab or tipboard deals with a registration stamp 92.33 affixed to the flare or any unplayed paddleticket cards with a 92.34 registration stamp affixed to the master flare. This paragraph 92.35 does not apply to unplayed pull-tab or tipboard deals with a 92.36 registration stamp affixed to the flare, or to unplayed 93.1 paddleticket cards with a registration stamp affixed to the 93.2 master flare, if the deals or cards are identified on a list of 93.3 existing inventory submitted by a licensed organization or a 93.4 licensed distributor, in a format prescribed by the commissioner 93.5 of revenue, to the commissioner of revenue on or before February 93.6 1, 1996. Gambling equipment kept in violation of this paragraph 93.7 is contraband under section 349.2125. 93.8 Sec. 104. Minnesota Statutes 2002, section 349.163, 93.9 subdivision 2, is amended to read: 93.10 Subd. 2. [LICENSE; FEE.]The initial license under this93.11section is valid for one year. The fee for the initial license93.12is $5,000. Renewal licenses under this section are valid for93.13two years and the fee for the renewal license is $10,000.The 93.14 annual fee for a manufacturer's license is $9,000. 93.15 Sec. 105. Minnesota Statutes 2002, section 349.163, 93.16 subdivision 6, is amended to read: 93.17 Subd. 6. [SAMPLES OF GAMBLING EQUIPMENT.] The board shall 93.18 require each licensed manufacturer to submit to the board one or 93.19 more samples of each item of gambling equipment the manufacturer 93.20 manufactures for use or resale in this state. The board shall 93.21 inspect and test all the equipment it deems necessary to 93.22 determine the equipment's compliance with law and board rules. 93.23 Samples required under this subdivision must be approved by the 93.24 board before the equipment being sampled is shipped into or sold 93.25 for use or resale in this state. The board shall impose a fee 93.26 of $25 for each item of gambling equipment that the manufacturer 93.27 submits for approval or for which the manufacturer requests 93.28 approval. The board shall impose a fee of $100 for each sample 93.29 of gambling equipment that it tests. The board may require 93.30 samples of gambling equipment to be tested by an independent 93.31 testing laboratory prior to submission to the board for 93.32 approval. All costs of testing by an independent testing 93.33 laboratory must be borne by the manufacturer. An independent 93.34 testing laboratory used by a manufacturer to test samples of 93.35 gambling equipment must be approved by the board before the 93.36 equipment is submitted to the laboratory for testing. The board 94.1 may request the assistance of the commissioner of public safety 94.2 and the director of the state lottery in performing the tests. 94.3 Sec. 106. Minnesota Statutes 2002, section 349.164, 94.4 subdivision 4, is amended to read: 94.5 Subd. 4. [FEES; TERM OF LICENSE.] Theinitialannual fee 94.6 for a bingo hall license is$2,500$4,000.An initial license94.7under this section is valid for one year. Renewal licenses94.8under this section are valid for two years and the fee for the94.9renewal license is $5,000.94.10 Sec. 107. Minnesota Statutes 2002, section 349.165, 94.11 subdivision 3, is amended to read: 94.12 Subd. 3. [FEES.](a) The board may issue four classes of94.13premises permits corresponding to the classes of licenses94.14authorized under section 349.16, subdivision 6. The fee for94.15each class of permit is:94.16(1) $400 for a class A permit;94.17(2) $250 for a class B permit;94.18(3) $200 for a class C permit; and94.19(4) $150 for a class D permit.94.20(b) If a premises permit is issued during the second year94.21of an organization's license, the fee for each class of permit94.22is:94.23(1) $200 for a class A permit;94.24(2) $125 for a class B permit;94.25(3) $100 for a class C permit; and94.26(4) $75 for a class D permit.94.27 The monthly fee for a premises permit is 0.18 percent of 94.28 the organization's gross receipts from lawful gambling conducted 94.29 at that site. The fee shall be reported and paid on a monthly 94.30 basis in a format as determined by the commissioner of revenue, 94.31 and remitted to the commissioner of revenue along with the 94.32 organization's monthly tax return for that premises. All 94.33 premises permit fees received by the commissioner of revenue 94.34 pursuant to this subdivision must be deposited in the lawful 94.35 gambling regulation account of the special revenue fund 94.36 according to section 349.151. Failure to pay the monthly 95.1 premises permit fees in a timely manner may result in 95.2 disciplinary action by the board. 95.3 Sec. 108. Minnesota Statutes 2002, section 349.166, 95.4 subdivision 1, is amended to read: 95.5 Subdivision 1. [EXCLUSIONS.] (a) Bingo may be conducted 95.6 without a license and without complying with sections 349.168, 95.7 subdivisions 1 and 2; 349.17, subdivisions 1, 4, and 5; 349.18, 95.8 subdivision 1; and 349.19, if it is conducted: 95.9 (1) by an organization in connection with a county fair, 95.10 the state fair, or a civic celebration and is not conducted for 95.11 more than 12 consecutive days and is limited to no more than 95.12 four separate applications for activities applied for and 95.13 approved in a calendar year; or 95.14 (2) by an organization that conducts four or fewer bingo 95.15 occasions in a calendar year. 95.16 An organization that holds a license to conduct lawful 95.17 gambling under this chapter may not conduct bingo under this 95.18 subdivision. 95.19 (b) Bingo may be conducted within a nursing home or a 95.20 senior citizen housing project or by a senior citizen 95.21 organization if the prizes for a single bingo game do not exceed 95.22 $10, total prizes awarded at a single bingo occasion do not 95.23 exceed $200, no more than two bingo occasions are held by the 95.24 organization or at the facility each week, only members of the 95.25 organization or residents of the nursing home or housing project 95.26 are allowed to play in a bingo game, no compensation is paid for 95.27 any persons who conduct the bingo, and a manager is appointed to 95.28 supervise the bingo. Bingo conducted under this paragraph is 95.29 exempt from sections 349.11 to 349.23, and the board may not 95.30 require an organization that conducts bingo under this 95.31 paragraph, or the manager who supervises the bingo, to register 95.32 or file a report with the board. The gross receipts from bingo 95.33 conducted under the limitations of this subdivision are exempt 95.34 from taxation under chapter 297A. 95.35 (c) Raffles may be conducted by an organization without a 95.36 license and without complying with sections 349.154 to 349.165 96.1 and 349.167 to 349.213 if the value of all raffle prizes awarded 96.2 by the organization in a calendar year does not 96.3 exceed$750$1,500. 96.4 (d) Except as provided in paragraph (b), the organization 96.5 must maintain all required records of excluded gambling activity 96.6 for 3-1/2 years. 96.7 Sec. 109. Minnesota Statutes 2002, section 349.166, 96.8 subdivision 2, is amended to read: 96.9 Subd. 2. [EXEMPTIONS.] (a) Lawful gambling may be 96.10 conducted by an organization without a license and without 96.11 complying with sections 349.168, subdivisions 1 and 2; 349.17, 96.12 subdivisions 4 and 5; 349.18, subdivision 1; and 349.19 if: 96.13 (1) the organization conducts lawful gambling on five or 96.14 fewer days in a calendar year; 96.15 (2) the organization does not award more than $50,000 in 96.16 prizes for lawful gambling in a calendar year; 96.17 (3) the organization pays a fee of$25$50 to the board, 96.18 notifies the board in writing not less than 30 days before each 96.19 lawful gambling occasion of the date and location of the 96.20 occasion, or 60 days for an occasion held in the case of a city 96.21 of the first class, the types of lawful gambling to be 96.22 conducted, the prizes to be awarded, and receives an exemption 96.23 identification number; 96.24 (4) the organization notifies the local government unit 30 96.25 days before the lawful gambling occasion, or 60 days for an 96.26 occasion held in a city of the first class; 96.27 (5) the organization purchases all gambling equipment and 96.28 supplies from a licensed distributor; and 96.29 (6) the organization reports to the board, on a single-page 96.30 form prescribed by the board, within 30 days of each gambling 96.31 occasion, the gross receipts, prizes, expenses, expenditures of 96.32 net profits from the occasion, and the identification of the 96.33 licensed distributor from whom all gambling equipment was 96.34 purchased. 96.35 (b) If the organization fails to file a timely report as 96.36 required by paragraph (a), clause (3) or (6), the board shall 97.1 not issue any authorization, license, or permit to the 97.2 organization to conduct lawful gambling on an exempt, excluded, 97.3 or licensed basis until the report has been filed. 97.4 (c) Merchandise prizes must be valued at their fair market 97.5 value. 97.6 (d) Unused pull-tab and tipboard deals must be returned to 97.7 the distributor within seven working days after the end of the 97.8 lawful gambling occasion. The distributor must accept and pay a 97.9 refund for all returns of unopened and undamaged deals returned 97.10 under this paragraph. 97.11 (e) An organization that is exempt from taxation on 97.12 purchases of pull-tabs and tipboards under section 297E.02, 97.13 subdivision 4, paragraph (b), clause (4), must return to the 97.14 distributor any tipboard or pull-tab deal no part of which is 97.15 used at the lawful gambling occasion for which it was purchased 97.16 by the organization. 97.17 (f) The organization must maintain all required records of 97.18 exempt gambling activity for 3-1/2 years. 97.19 Sec. 110. [349.2113] 97.20 On or after January 1, 2004, a licensed organization may 97.21 not put into play a pull-tab or tipboard deal that provides for 97.22 a prize payout of greater than 85 percent of the ideal gross of 97.23 the deal. 97.24 Sec. 111. Minnesota Statutes 2002, section 349A.08, 97.25 subdivision 5, is amended to read: 97.26 Subd. 5. [PAYMENT; UNCLAIMED PRIZES.] A prize in the state 97.27 lottery must be claimed by the winner within one year of the 97.28 date of the drawing at which the prize was awarded or the last 97.29 day sales were authorized for a game where a prize was 97.30 determined in a manner other than by means of a drawing. If a 97.31 valid claim is not made for a prize payable directly by the 97.32 lottery by the end of this period, the prize money is considered 97.33 unclaimed and the winner of the prize shall have no further 97.34 claim to the prize. A prize won by a person who purchased the 97.35 winning ticket in violation of section 349A.12, subdivision 1, 97.36 or won by a person ineligible to be awarded a prize under 98.1 subdivision 7 must be treated as an unclaimed prize under this 98.2 section. The directorshallmust transfer70 percent ofall 98.3 unclaimed prize money at the end of each fiscal year from the 98.4 lottery cash flow accountas follows: of the 70 percent, 4098.5percent must be transferred to the Minnesota environment and98.6natural resources trust fund and 60 percent must be transferred98.7 to the general fund.The remaining 30 percent of the unclaimed98.8prize money must be added by the director to prize pools of98.9subsequent lottery games.98.10 Sec. 112. Minnesota Statutes 2002, section 352D.04, is 98.11 amended by adding a subdivision to read: 98.12 Subd. 3. [ADDITIONAL CONTRIBUTIONS.] The executive 98.13 director of the Minnesota state retirement system must allow a 98.14 participant in the unclassified program a onetime option, at the 98.15 time of hire, under which the employee contribution to the plan 98.16 is ten percent of salary. 98.17 Sec. 113. Minnesota Statutes 2002, section 356.611, 98.18 subdivision 1, is amended to read: 98.19 Subdivision 1. [STATE SALARY LIMITATIONS.] (a) 98.20 Notwithstanding any provision of law, bylaws, articles of 98.21 incorporation, retirement and disability allowance plan 98.22 agreements, or retirement plan contracts to the contrary, the 98.23 covered salary for pension purposes for a plan participant of a 98.24 covered retirement fund enumerated in section 356.30, 98.25 subdivision 3, may not exceed 95 percent of the salary 98.26 established for the governor under section 15A.082 at the time 98.27 the person received the salary. 98.28 (b) This section does not apply to a salary paid: 98.29 (1) to the governor; 98.30 (2) to an employee of a political subdivision in a position 98.31 that is excluded from the limit as specified under section 98.3243A.17, subdivision 915A.23; or 98.33 (3) to a state employee in a position for which the 98.34 commissioner of employee relations has approved a salary rate 98.35 that exceeds 95 percent of the governor's salary. 98.36 (c) The limited covered salary determined under this 99.1 section must be used in determining employee and employer 99.2 contributions and in determining retirement annuities and other 99.3 benefits under the respective covered retirement fund and under 99.4 this chapter. 99.5 Sec. 114. Minnesota Statutes 2002, section 458D.17, 99.6 subdivision 5, is amended to read: 99.7 Subd. 5. [AUDIT.] The board shall provide for and pay the 99.8 cost of an independent annual audit of its official books and 99.9 records by the statepublic examinerauditor or a certified 99.10 public accountant. 99.11 Sec. 115. Minnesota Statutes 2002, section 471.696, is 99.12 amended to read: 99.13 471.696 [FISCAL YEAR; DESIGNATION.] 99.14 Beginning in 1979, the fiscal year of a city and all of its 99.15 funds shall be the calendar year, except that a city may, by 99.16 resolution, provide that the fiscal year for city-owned nursing 99.17 homes be the reporting year designated by the commissioner of 99.18 human services. Beginning in 1994, the fiscal year of a town 99.19 and all of its funds shall be the calendar year.The state99.20auditor may upon request of a town and a showing of inability to99.21conform, extend the deadline for compliance with this section99.22for one year.99.23 Sec. 116. Minnesota Statutes 2002, section 471.999, is 99.24 amended to read: 99.25 471.999 [MAINTAINING PAY EQUITY; REPORT TO LEGISLATURE.] 99.26 (a) The state auditor shall monitor compliance by political 99.27 subdivisions with section 471.992, subdivision 1. The state 99.28 auditor may charge and collect a fee pursuant to section 6.56. 99.29 (b) Thecommissioner of employee relationsstate auditor 99.30 shall report to the legislature by January 1 of each year on the 99.31 status of compliance with section 471.992, subdivision 1, by 99.32 governmental subdivisions. 99.33 The report must include a list of the political 99.34 subdivisions in compliance with section 471.992, subdivision 1, 99.35 and the estimated cost of compliance. The report must also 99.36 include a list of political subdivisions found by the 100.1commissionerstate auditor to be not in compliance, the basis 100.2 for that finding, recommended changes to achieve compliance, 100.3 estimated cost of compliance, and recommended penalties, if 100.4 any. Thecommissioner'sauditor's report must include a list of 100.5 subdivisions that did not comply with the reporting requirements 100.6 of this section. Thecommissionerstate auditor may request, 100.7 and a subdivision shall provide, any additional information 100.8 needed for the preparation of a report under this subdivision. 100.9 (c) Notwithstanding any rule to the contrary, beginning in 100.10 2005, a political subdivision must report to the state auditor 100.11 on its compliance with the requirements of sections 471.991 to 100.12 471.999 no more frequently than once every five years. No 100.13 report from a political subdivision is required for 2003 and 100.14 2004. 100.15 Sec. 117. Minnesota Statutes 2002, section 474A.21, is 100.16 amended to read: 100.17 474A.21 [APPROPRIATION; RECEIPTS.] 100.18 Any application fees collected by the department under 100.19 sections 474A.01 to 474A.21 must be deposited ina separate100.20account inthe general fund. The amount necessary to refund 100.21 application deposits is appropriated to the departmentfrom the100.22separate account in the general fundfor that purpose. The 100.23 interest accruing on application deposits and any application 100.24 deposit not refunded as provided under section 474A.061, 100.25 subdivision 4, or 474A.091, subdivision 5, or forfeited as 100.26 provided under section 474A.131, subdivision 2, must be 100.27 deposited in thehousing trustgeneral fundaccount under100.28section 462A.201. 100.29 Sec. 118. Minnesota Statutes 2002, section 477A.014, 100.30 subdivision 4, is amended to read: 100.31 Subd. 4. [COSTS.] The director of the office of strategic 100.32 and long-range planning shall annually bill the commissioner of 100.33 revenue for one-half of the costs incurred by the state 100.34 demographer in the preparation of materials required by section 100.35 4A.02. The state auditor shall bill the commissioner of revenue 100.36 for the costs of best practices reviews and the services 101.1 provided by the government information division and the parts of 101.2 the constitutional office that are related to the government 101.3 information function, not to exceed $217,000 in fiscal year 1992 101.4 and $217,000 in fiscal year 1993 and thereafter. The 101.5 commissioner of administration shall bill the commissioner of 101.6 revenue for the costs of the local government records program 101.7 and the intergovernmental information systems activity, not to 101.8 exceed $201,100 in fiscal year 1992 and $205,800 in fiscal year 101.9 1993 and thereafter.The commissioner of employee relations101.10shall bill the commissioner of revenue for the costs of101.11administering the local government pay equity function, not to101.12exceed $56,000 in fiscal year 1992 and $55,000 in fiscal year101.131993 and thereafter.101.14 [EFFECTIVE DATE.] The requirement in this section for the 101.15 state auditor to bill for costs of best practices reviews is 101.16 effective July 1, 2004. The remainder of the section is 101.17 effective July 1, 2003. 101.18 Sec. 119. Laws 1998, chapter 366, section 80, as amended 101.19 by Laws 2001, First Special Session chapter 10, article 2, 101.20 section 86, is amended to read: 101.21 Sec. 80. [SETTLEMENT DIVISION; TRANSFER OF JUDGES.] 101.22 The office of administrative hearings shall establish a 101.23 settlement division. The workers' compensation judges at the 101.24 department of labor and industry, together with their support 101.25 staff, offices, furnishings, equipment, and supplies, are 101.26 transferred to the settlement division of the office of 101.27 administrative hearings. Minnesota Statutes, section 15.039, 101.28 applies to the transfer of employees. The settlement division 101.29 of the office of administrative hearings shall maintain offices 101.30 in either Hennepin or Ramsey county and thecitiescity of 101.31 Duluthand Detroit Lakes. The office of a judge in the 101.32 settlement division of the office of administrative hearings and 101.33 the support staff of the judge may be located in a building that 101.34 contains offices of the department of labor and industry. The 101.35 seniority of a workers' compensation judge at the office of 101.36 administrative hearings, after the transfer, shall be based on 102.1 the total length of service as a judge at either agency. For 102.2 purposes of the commissioner's plan under Minnesota Statutes, 102.3 section 43A.18, subdivision 2, all compensation judges at the 102.4 office of administrative hearings shall be considered to be in 102.5 the same employment condition, the same organizational unit and 102.6 qualified for work in either division. 102.7 Sec. 120. [TRANSFER OF DUTIES RELATING TO PAY EQUITY.] 102.8 The responsibilities relating to local government pay 102.9 equity under Minnesota Statutes, sections 471.991 to 471.999, 102.10 and Minnesota Rules, chapter 3920, are transferred from the 102.11 department of employee relations to the state auditor. 102.12 Minnesota Statutes, section 15.039, applies to the transfer of 102.13 responsibilities. 102.14 Sec. 121. [UNCLASSIFIED PLAN.] 102.15 The executive director of the Minnesota state retirement 102.16 system must offer persons who are participants in the 102.17 unclassified plan on the effective date of this section a 102.18 onetime option to choose the ten percent contribution level 102.19 specified in Minnesota Statutes, section 352D.04. 102.20 Sec. 122. [SALARY FREEZE.] 102.21 Subdivision 1. [SALARY INCREASES PROHIBITED.] (a) From the 102.22 effective date of this section through June 30, 2005, a state 102.23 employer must not increase the rate of salary or wages for any 102.24 employee. This section prohibits any increase including, but 102.25 not limited to, across-the-board increases, cost-of-living 102.26 adjustments, increases based on longevity, increases as a result 102.27 of step and lane changes, increases in the form of lump-sum 102.28 payments, increases in employer contributions to deferred 102.29 compensation plans, or any other pay grade adjustments of any 102.30 kind. For purposes of this section, salary or wages does not 102.31 include employer contributions toward the cost of medical or 102.32 dental insurance premiums provided that employee contributions 102.33 to the costs of medical or dental insurance premiums are not 102.34 decreased. 102.35 (b) This section does not prohibit an increase in the rate 102.36 of salary and wages for an employee who is promoted or 103.1 transferred to a position that the employer determines has 103.2 greater job responsibilities. 103.3 (c) Notwithstanding any law to the contrary, the terms of a 103.4 collective bargaining agreement in effect on June 30, 2003, may 103.5 not be extended after that date if the extension would increase 103.6 a salary in a manner prohibited by this section. 103.7 Subd. 2. [FUTURE CONTRACTS.] A contract or collective 103.8 bargaining agreement or compensation plan entered into after 103.9 June 30, 2005, must not provide a retroactive salary, or wage 103.10 increase that applies to a period before June 30, 2005, if that 103.11 increase would be prohibited by this section if granted before 103.12 June 30, 2005. 103.13 Subd. 3. [ARBITRATION AND STRIKES.] Notwithstanding any 103.14 law to the contrary: 103.15 (1) an employee may not legally strike due to a state 103.16 employer's refusal to grant a salary or wage increase if the 103.17 refusal is required to comply with this section; and 103.18 (2) neither a state employer nor an exclusive 103.19 representative may request interest arbitration in relation to 103.20 an increase in the rate of salary or wages that is prohibited by 103.21 this section, and an arbitrator may not issue an award that 103.22 would increase salary or wages in a manner prohibited by this 103.23 section. 103.24 Subd. 4. [DEFINITIONS.] For purposes of this section: 103.25 (1) "state employer" means an appointing authority in the 103.26 executive, legislative, or judicial branches as defined in 103.27 Minnesota Statutes, section 43A.02, subdivisions 5, 22, 25, and 103.28 27; and 103.29 (2) "employee" has the meaning given in Minnesota Statutes, 103.30 section 43A.02, subdivision 21. 103.31 Subd. 5. [RELATION TO OTHER LAW.] This section supersedes 103.32 Minnesota Statutes, chapter 179A, and any other law to the 103.33 contrary. It is not an unfair labor practice under Minnesota 103.34 Statutes, chapter 179A, for a state employer to take any action 103.35 required to comply with this section. 103.36 [EFFECTIVE DATE.] This section is effective July 1, 2003. 104.1 Sec. 123. [UNIVERSITY OF MINNESOTA; SALARY AND WAGE RATE 104.2 FREEZE RECOMMENDED.] 104.3 The legislature strongly recommends that the University of 104.4 Minnesota comply with section 122 as if it were defined as a 104.5 state employer under that section. 104.6 [EFFECTIVE DATE.] This section is effective July 1, 2003. 104.7 Sec. 124. [GAMBLING CONTROL; FEE TRANSITION.] 104.8 Effective July 1, 2003, all licensees regulated by the 104.9 gambling control board must begin paying the applicable fees 104.10 under Minnesota Statutes, sections 349.16 to 349.165. The 104.11 gambling control board shall provide a onetime, prorated credit 104.12 against these fees to licensees who paid for licenses before 104.13 July 1, 2003, that were to extend beyond July 1, 2003. 104.14 Sec. 125. [CARRYFORWARD.] 104.15 Notwithstanding Minnesota Statutes, section 16A.28, or 104.16 other law to the contrary, funds encumbered by the judicial or 104.17 executive branch for severance costs; unemployment compensation 104.18 costs; and health, dental, and life insurance continuation costs 104.19 resulting from state employee layoffs during the fiscal year 104.20 ending June 30, 2003, may be carried forward and may be spent 104.21 until January 1, 2004. 104.22 Sec. 126. [VACATION LIMIT.] 104.23 A state employee who takes voluntary unpaid leave of 104.24 absence during the biennium ending June 30, 2005, must be 104.25 allowed to accrue a vacation leave balance up to at least 300 104.26 hours through June 30, 2005. 104.27 Sec. 127. [GAMING STUDY.] 104.28 The director of the state lottery shall contract with an 104.29 independent entity to perform an analysis of the economic 104.30 effects of a gaming facility in the metropolitan area on 104.31 existing tribal gaming facilities located in or within 100 miles 104.32 of the metropolitan area. 104.33 Sec. 128. [LCC; LEAVE WITHOUT PAY.] 104.34 (a) If the legislative coordinating commission requires 104.35 employees under its jurisdiction to take temporary leave without 104.36 pay during the biennium ending June 30, 2005, the first 80 hours 105.1 of leave without pay in fiscal year 2004 and the first 80 hours 105.2 of leave without pay in fiscal year 2005 are governed by this 105.3 section. The commission must permit employees taking this leave 105.4 to continue accruing vacation and sick leave, be eligible for 105.5 paid holidays and insurance benefits, accrue seniority, and 105.6 accrue service credit and credited salary in state retirement 105.7 plans permitting service credits for authorized leaves of 105.8 absence as if the employee had actually been employed during the 105.9 time of the leave. The commission may make the employer 105.10 contribution to the employee's retirement plan if the employee 105.11 participates in a defined contribution plan. If the leave 105.12 without pay is for one full pay period or longer, any holiday 105.13 pay shall be included in the first payroll warrant after return 105.14 from the leave. Managers must attempt to schedule leaves to 105.15 meet the needs of employees and the need to continue efficient 105.16 operation of their offices. 105.17 (b) Notwithstanding Minnesota Statutes, section 43A.18, 105.18 subdivisions 2 and 3, the legislative coordinating commission 105.19 may require employees in the office of the legislative auditor 105.20 whose terms and conditions of employment are determined through 105.21 the commissioner and managerial compensation plans to take leave 105.22 without pay as described in paragraph (a). 105.23 Sec. 129. [OFFICIAL PUBLICATION STUDY.] 105.24 Representatives of local public corporations, as defined in 105.25 Minnesota Statutes, chapter 331A, must meet with representatives 105.26 of qualified newspapers and report to the legislature by January 105.27 15, 2004, on alternative means of official publication for local 105.28 public corporations. 105.29 Sec. 130. [TRAINING SERVICES.] 105.30 During the biennium ending June 30, 2005, state executive 105.31 agencies must consider using services provided by the government 105.32 training service before contracting with other outside vendors 105.33 for similar services. 105.34 Sec. 131. [CRIMNET FINANCIAL AUDIT.] 105.35 The legislative auditor must complete a financial audit of 105.36 all components and expenditures of the group of projects 106.1 generally referred to as CriMNet by January 31, 2004. The audit 106.2 must include a review of all contracts related to CriMNet for 106.3 compliance with state law, including the laws and guidelines 106.4 governing the issuance of contracts. 106.5 Sec. 132. [REVISOR'S INSTRUCTIONS.] 106.6 (a) In the next and subsequent editions of Minnesota 106.7 Statutes, the revisor of statutes shall replace the terms 106.8 "commissioner of employee relations" and "commissioner" with 106.9 "state auditor" in sections 471.991 to 471.999. In sections 106.10 affected by this instruction, the revisor may make changes 106.11 necessary to correct the cross-references, punctuation, grammar, 106.12 or structure of the remaining text and preserve its meaning. 106.13 (b) In the next and subsequent editions of Minnesota Rules, 106.14 chapter 3920, the revisor of statutes shall replace the terms 106.15 "department of employee relations" and "department" with "state 106.16 auditor." The revisor shall replace the address listed in 106.17 Minnesota Rules, part 3920.0100, subpart 11, with "525 Park 106.18 Street, Suite 400, Saint Paul, Minnesota 55103." In parts 106.19 affected by this instruction, the revisor may make changes 106.20 necessary to correct the cross-references, punctuation, grammar, 106.21 or structure of the remaining text and preserve its meaning. 106.22 Sec. 133. [REPEALER.] 106.23 (a) Minnesota Statutes 2002, sections 3.305, subdivision 5; 106.24 3.9222; 3A.11; 4A.055; 6.77; 16A.151, subdivision 5; 16A.87; 106.25 16C.18, subdivision 1; 43A.04, subdivision 10; 43A.17, 106.26 subdivision 9; 149A.97, subdivision 8; 163.10; 240A.08; and 106.27 306.97, are repealed. 106.28 (b) Minnesota Rules, part 1950.1070, is repealed effective 106.29 July 1, 2004. 106.30 (c) Minnesota Statutes 2002, sections 12.221, subdivision 106.31 5; 16B.50; and 16C.07, are repealed effective the day following 106.32 final enactment. 106.33 (d) Minnesota Statutes 2002, section 3.971, subdivision 8, 106.34 is repealed effective July 1, 2004. 106.35 (e) Minnesota Statutes 2002, section 62J.07, is repealed 106.36 effective July 1, 2005. 107.1 ARTICLE 3 107.2 STATE BOARD OF INVESTMENT 107.3 CHANGES 107.4 Section 1. Minnesota Statutes 2002, section 11A.17, 107.5 subdivision 2, is amended to read: 107.6 Subd. 2. [ASSETS.] The assets of the supplemental 107.7 investment fund shall consist of the money certified and 107.8 transmitted to the state board from the participating public 107.9 retirement plans and funds or from the board of the Minnesota 107.10 state colleges and universities under section 136F.45. The 107.11 assets must be used to purchase investment shares in the 107.12 investment accounts specified by the plan or fund. These 107.13 accounts must be valued at least on a monthly basis, but may be 107.14 valued more frequently as determined by the state board of 107.15 investment. 107.16 Sec. 2. Minnesota Statutes 2002, section 352.96, 107.17 subdivision 2, is amended to read: 107.18 Subd. 2. [PURCHASE OF SHARES.] The amount of compensation 107.19 so deferred may be used to purchase: 107.20 (1) shares in the Minnesota supplemental investment fund 107.21 established in section 11A.17 that are selected to be offered 107.22 under the plan by the state board of investment; 107.23 (2) saving accounts in federally insured financial 107.24 institutions; 107.25 (3) life insurance contracts, fixed annuity and variable 107.26 annuity contracts from companies that are subject to regulation 107.27 by the commissioner of commerce; 107.28 (4) investment options from open-end investment companies 107.29 registered under the federal Investment Company Act of 1940, 107.30 United States Code, title 15, sections 80a-1 to 80a-64; 107.31 (5) investment options from a firm that is a registered 107.32 investment advisor under the Investment Advisers Act of 1940, 107.33 United States Code, title 15, section 80b-1 to 80b-21; 107.34 (6) investment options of a bank as defined in United 107.35 States Code, title 15, section 80b-2, subsection (a), paragraph 107.36 (2), or a bank holding company as defined in the Bank Holding 108.1 Company Act of 1956, United States Code, title 12, section 1841, 108.2 subsection (a), paragraph (1); or 108.3 (7) a combination of clause (1), (2), (3), (4), (5), or 108.4 (6), as provided by the plan as specified by the participant. 108.5 All amounts contributed to the deferred compensation plan 108.6 and all earnings on those amounts will be held for the exclusive 108.7 benefit of the plan participants and beneficiaries. These 108.8 amounts will be held in trust, in custodial accounts, or in 108.9 qualifying annuity contracts as required by federal law and in 108.10 accordance with section 356A.06, subdivision 1. This 108.11 subdivision does not authorize an employer contribution, except 108.12 as authorized in section 356.24, subdivision 1, paragraph (a), 108.13 clause (5). The state, political subdivision, or other 108.14 employing unit is not responsible for any loss that may result 108.15 from investment of the deferred compensation. 108.16 Sec. 3. [EFFECTIVE DATE.] 108.17 Sections 1 and 2 are effective July 1, 2003. 108.18 ARTICLE 4 108.19 EARLY RETIREMENT INCENTIVE PROGRAMS 108.20 Section 1. [APPLICATION.] 108.21 Unless otherwise specified, this article applies to 108.22 governmental subdivisions as specified in Minnesota Statutes, 108.23 section 353.01, subdivision 6, and public employees providing 108.24 service to the applicable employer and covered by the public 108.25 employees retirement association general plan or police and fire 108.26 plan under Minnesota Statutes, chapter 353, or the public 108.27 employees retirement association local government correctional 108.28 service retirement plan under Minnesota Statutes, chapter 353E. 108.29 Sec. 2. [EMPLOYEE EXCLUSION.] 108.30 This article does not apply to any employee who provides 108.31 service to more than one governmental subdivision, or who earns 108.32 service credit during the time period covered by this article in 108.33 any Minnesota public employee plan, other than a volunteer fire 108.34 plan or a plan administered by the public employees retirement 108.35 association under conditions specified in this article. 108.36 Sec. 3. [PHASED RETIREMENT.] 109.1 (a) This section applies to a public employee who: 109.2 (1) on the effective date of this section is regularly 109.3 scheduled to work 1,040 or more hours a year in a position 109.4 covered by an applicable retirement plan; 109.5 (2) enters into an agreement with the governmental 109.6 subdivision to work a reduced schedule that is both: 109.7 (i) a reduction of at least 25 percent from the number of 109.8 regularly scheduled work hours; and 109.9 (ii) 1,040 hours or less in the covered position; and 109.10 (3) at the time of entering into the agreement under clause 109.11 (2), meets the age and service requirements necessary to receive 109.12 a retirement benefit from the applicable plan. 109.13 (b) Notwithstanding any law to the contrary, for service 109.14 under an agreement entered into under paragraph (a), an employee 109.15 agrees to terminate public employment meeting the requirements 109.16 of Minnesota Statutes, section 353.01, subdivision 11a, except 109.17 that the minimum 30-day break-in-service requirement under that 109.18 subdivision shall not apply, and agrees to reemployment with the 109.19 applicable governmental subdivision under terms and conditions 109.20 specified in this section. If an eligible public employee 109.21 commences receipt of an annuity from a plan specified in section 109.22 1, the provisions of Minnesota Statutes, section 353.37, 109.23 governing annuities of reemployed annuitants shall not apply for 109.24 the duration of the agreement. 109.25 (c) The number of hours worked, the work schedule, and the 109.26 duration of the phased retirement employment must be mutually 109.27 agreed to by the employee and the governmental subdivision. The 109.28 governmental subdivision may not require a person to waive any 109.29 rights under a collective bargaining agreement as a condition of 109.30 participation in this section. The governmental subdivision has 109.31 sole discretion to determine if, and the extent to which, phased 109.32 retirement under this section is available to an employee. 109.33 (d) Notwithstanding any law to the contrary, a person may 109.34 not earn service credit in the public employees retirement 109.35 association for employment covered under this section, and 109.36 employer contributions and payroll deductions for the retirement 110.1 fund must not be made based on earnings of a person working 110.2 under this section. No change shall be made to a monthly 110.3 annuity or retirement allowance based on employment under this 110.4 section. 110.5 (e) A person who works under this section and meets the 110.6 definition of public employee under Minnesota Statutes, section 110.7 179A.03, subdivision 14, is a member of the appropriate 110.8 bargaining unit, is covered by the appropriate collective 110.9 bargaining contract or personnel policy, and is eligible for 110.10 health care coverage as provided in the collective bargaining 110.11 contract or personnel policy. 110.12 (f) An agreement under this section may apply only to work 110.13 through June 30, 2005. 110.14 Sec. 4. [VOLUNTARY HOUR REDUCTION PLAN.] 110.15 (a) This section applies to a public employee who: 110.16 (1) on the effective date of this section is regularly 110.17 scheduled to work 1,040 or more hours a year in a position 110.18 covered by a pension plan administered by the public employees 110.19 retirement association; and 110.20 (2) enters into an agreement with a governmental 110.21 subdivision to work a reduced schedule of 1,040 or less hours in 110.22 the covered position. 110.23 (b) Notwithstanding any law to the contrary, for service 110.24 under an agreement entered into under paragraph (a), 110.25 contributions may be made to the applicable plan of the public 110.26 employees retirement association as if the employee had not 110.27 reduced hours. The employee must pay the employee contributions 110.28 and the employer must pay employer and additional employer 110.29 contributions necessary to bring the service credit and salary 110.30 up to the level prior to the voluntary reduction in hours. 110.31 Contributions must be made in a time and manner prescribed by 110.32 the executive director of the public employees retirement 110.33 association. 110.34 (c) The number of hours worked, the work schedule, and the 110.35 duration of the voluntary hour reduction must be mutually agreed 110.36 to by the employee and the governmental subdivision. The 111.1 governmental subdivision may not require a person to waive any 111.2 rights under a collective bargaining agreement as a condition of 111.3 participation under this section. The governmental subdivision 111.4 has sole discretion to determine if, and the extent to which, 111.5 voluntary hour reduction under this section is available to an 111.6 employee. 111.7 (d) A person who works under this section and meets the 111.8 definition of public employee under Minnesota Statutes, section 111.9 179A.03, subdivision 14, is a member of an appropriate 111.10 bargaining unit, is covered by an appropriate collective 111.11 bargaining contract or personnel policy, and is eligible for 111.12 health care coverage as provided in a collective bargaining 111.13 contract or personnel policy. 111.14 (e) An agreement under this section may apply only to work 111.15 through June 30, 2005. 111.16 Sec. 5. [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 111.17 (a) Governmental subdivisions may allow employees to take 111.18 unpaid leaves of absence between June 1, 2003, and June 30, 111.19 2005. Each governmental subdivision approving a leave shall 111.20 allow the employee to continue accruing vacation and sick leave, 111.21 be eligible for paid holidays and insurance benefits, accrue 111.22 seniority, and accrue service credit and credited salary in the 111.23 public employees retirement association as if the employee had 111.24 actually been employed during the time of leave. If the leave 111.25 of absence is for one full pay period or longer, any holiday pay 111.26 shall be included in the first payroll warrant after return from 111.27 the leave of absence. The governmental subdivision shall 111.28 attempt to grant requests for the unpaid leaves of absence 111.29 consistent with the need to continue efficient operation of the 111.30 governmental subdivision. However, each governmental 111.31 subdivision shall retain discretion to grant or refuse to grant 111.32 requests for leaves of absence and to schedule and cancel 111.33 leaves, subject to the applicable provisions of collective 111.34 bargaining agreements and personnel policy. 111.35 (b) To receive eligible service credit, the member shall 111.36 pay an amount equal to the applicable employee contribution 112.1 rates. If an employee pays the employee contribution for the 112.2 period of the leave under this section, the governmental 112.3 subdivision must pay the employer contribution and the 112.4 additional employer contribution. The governmental subdivision 112.5 may, at its discretion, pay employee, employer, and additional 112.6 employer contributions to the public employees retirement 112.7 association for the period of leave under this section. 112.8 Contributions must be made in a time and manner prescribed by 112.9 the executive director of the public employees retirement 112.10 association. 112.11 Sec. 6. [DESIGNATION OF POSITIONS; EMPLOYER DISCRETION.] 112.12 Before agreeing to an option under this article, a 112.13 governmental subdivision must designate the job classifications 112.14 or positions within job classifications that qualify for each 112.15 option. The governmental subdivision may modify this 112.16 designation at any time. Designation of positions eligible for 112.17 the options and participation of individual employees under this 112.18 article are at the sole discretion of the governmental 112.19 subdivision. Implementation of this article by the employer is 112.20 not an unfair labor practice under Minnesota Statutes, chapter 112.21 179A, or an unfair discriminatory practice under Minnesota 112.22 Statutes, chapter 363. 112.23 Sec. 7. [PROGRAM APPLICATION REQUIREMENTS.] 112.24 (a) No agreement between an eligible public employee and a 112.25 governmental subdivision under this article is effective unless 112.26 the employee acknowledges acceptance of the terms of the 112.27 agreement in writing on a form prescribed by the public 112.28 employees retirement association executive director. 112.29 (b) A copy of the signed agreement must be transmitted to 112.30 the public employees retirement association executive director 112.31 within 30 days after the agreement is executed. 112.32 Sec. 8. [RELATIONSHIP OF SECTIONS.] 112.33 (a) An employee covered by a phased retirement agreement 112.34 under section 3 may not be covered by the voluntary hour 112.35 reduction provisions of section 4 or by a voluntary unpaid leave 112.36 of absence agreement under section 5 during the same time period 113.1 or any later time period. 113.2 (b) An employee covered by the voluntary hour reduction 113.3 provisions of section 4: 113.4 (1) may not be covered by a phased retirement agreement 113.5 under section 3 during the same time period, but may be covered 113.6 by a phased retirement agreement under section 3 during a later 113.7 time period; and 113.8 (2) may be covered by the voluntary leave of absence 113.9 provision of section 5 during an earlier or later time period. 113.10 Sec. 9. [GOVERNMENTAL SUBDIVISION LIMITATION.] 113.11 Notwithstanding Minnesota Statutes, section 353.01, 113.12 subdivision 6, paragraph (b), to the contrary, for purposes of 113.13 this article, the public employees retirement association is not 113.14 a governmental subdivision. 113.15 Sec. 10. [EFFECTIVE DATE.] 113.16 Sections 1 to 9 are effective the day following final 113.17 enactment. 113.18 ARTICLE 5 113.19 PUBLIC EMPLOYEES RETIREMENT 113.20 ASSOCIATION CHANGES 113.21 Section 1. Minnesota Statutes 2002, section 353.01, 113.22 subdivision 2d, is amended to read: 113.23 Subd. 2d. [OPTIONAL MEMBERSHIP.] (a) Membership in the 113.24 association is optional by action of the individual employee for 113.25 the following public employees who meet the conditions set forth 113.26 in subdivision 2a: 113.27 (1) members of the coordinated plan who are also employees 113.28 of labor organizations as defined in section 353.017, 113.29 subdivision 1, for their employment by the labor organization 113.30 only if they elect to have membership under section 353.017, 113.31 subdivision 2; 113.32 (2) persons who are elected or persons who are appointed to 113.33 elected positions other than local governing body elected 113.34 positions who elect to participate by filing a written election 113.35 for membership; 113.36 (3) members of the association who are appointed by the 114.1 governor to be a state department head and who elect not to be 114.2 covered by the general state employees retirement plan of the 114.3 Minnesota state retirement system under section 352.021;and114.4 (4) city managers as defined in section 353.028, 114.5 subdivision 1, who do not elect to be excluded from membership 114.6 in the association under section 353.028, subdivision 2; and 114.7 (5) employees of the port authority of the city of St. Paul 114.8 who were at least age 45 on January 1, 2003, and who elect to 114.9 participate by filing a written election for membership. 114.10 (b) Membership in the association is optional by action of 114.11 the governmental subdivision for the employees of the following 114.12 governmental subdivisions under the conditions specified: 114.13 (1) the Minnesota association of townships if the board of 114.14 the association, at its option, certifies to the executive 114.15 director that its employees are to be included for purposes of 114.16 retirement coverage, in which case the status of the association 114.17 as a participating employer is permanent; and 114.18 (2) a county historical society if the county in which the 114.19 historical society is located, at its option, certifies to the 114.20 executive director that the employees of the historical society 114.21 are to be county employees for purposes of retirement coverage 114.22 under this chapter. The status as a county employee must be 114.23 accorded to all similarly situated county historical society 114.24 employees and, once established, must continue as long as a 114.25 person is an employee of the county historical society. 114.26 (c) For employees who are covered by paragraph (a), clause 114.27 (1), (2), or (3), or covered by paragraph (b), if the necessary 114.28 membership election is not made, the employee is excluded from 114.29 retirement coverage under this chapter. For employees who are 114.30 covered by paragraph (a), clause (4), if the necessary election 114.31 is not made, the employee must become a member and have 114.32 retirement coverage under this chapter. The option to become a 114.33 member, once exercised under this subdivision, may not be 114.34 withdrawn until termination of public service as defined under 114.35 subdivision 11a. 114.36 Sec. 2. Minnesota Statutes 2002, section 353.01, 115.1 subdivision 6, is amended to read: 115.2 Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 115.3 subdivision" means a county, city, town, school district within 115.4 this state, or a department or unit of state government, or any 115.5 public body whose revenues are derived from taxation, fees, 115.6 assessments or from other sources. 115.7 (b) Governmental subdivision also means the public 115.8 employees retirement association, the league of Minnesota 115.9 cities, the association of metropolitan municipalities, public 115.10 hospitals owned or operated by, or an integral part of, a 115.11 governmental subdivision or governmental subdivisions, the 115.12 association of Minnesota counties, the metropolitan intercounty 115.13 association, the Minnesota municipal utilities association, the 115.14 metropolitan airports commission, the Minneapolis employees 115.15 retirement fund for employment initially commenced after June 115.16 30, 1979, the range association of municipalities and schools, 115.17 soil and water conservation districts, economic development 115.18 authorities created or operating under sections 469.090 to 115.19 469.108, the port authority of the city of St. Paul, the Spring 115.20 Lake Park fire department, incorporated, the Red Wing 115.21 environmental learning center, and the Dakota county 115.22 agricultural society. 115.23 (c) Governmental subdivision does not mean any municipal 115.24 housing and redevelopment authority organized under the 115.25 provisions of sections 469.001 to 469.047; or any port authority 115.26 organized under sections 469.048 to 469.089 other than the port 115.27 authority of the city of St. Paul; or any hospital district 115.28 organized or reorganized prior to July 1, 1975, under sections 115.29 447.31 to 447.37 or the successor of the district, nor the 115.30 Minneapolis community development agency. 115.31 Sec. 3. Minnesota Statutes 2002, section 353D.01, 115.32 subdivision 2, is amended to read: 115.33 Subd. 2. [ELIGIBILITY.] (a) Eligibility to participate in 115.34 the defined contribution plan is available to: 115.35 (1) elected local government officials of a governmental 115.36 subdivision who elect to participate in the plan under section 116.1 353D.02, subdivision 1, and who, for the elected service 116.2 rendered to a governmental subdivision, are not members of the 116.3 public employees retirement association within the meaning of 116.4 section 353.01, subdivision 7; 116.5 (2) physicians who, if they did not elect to participate in 116.6 the plan under section 353D.02, subdivision 2, would meet the 116.7 definition of member under section 353.01, subdivision 7; 116.8 (3) basic and advanced life support emergency medical 116.9 service personnel employed by or providing services for any 116.10 public ambulance service or privately operated ambulance service 116.11 that receives an operating subsidy from a governmental entity 116.12 that elects to participate under section 353D.02, subdivision 3; 116.13and116.14 (4) members of a municipal rescue squad associated with 116.15 Litchfield in Meeker county, or of a county rescue squad 116.16 associated with Kandiyohi county, if an independent nonprofit 116.17 rescue squad corporation, incorporated under chapter 317A, 116.18 performing emergency management services, and if not affiliated 116.19 with a fire department or ambulance service and if its members 116.20 are not eligible for membership in that fire department's or 116.21 ambulance service's relief association or comparable pension 116.22 plan; and 116.23 (5) employees of the port authority of the city of St. Paul 116.24 who elect to participate in the plan under section 353D.02, 116.25 subdivision 5, and who are not members of the public employees 116.26 retirement association under section 353.01, subdivision 7. 116.27 (b) For purposes of this chapter, an elected local 116.28 government official includes a person appointed to fill a 116.29 vacancy in an elective office. Service as an elected local 116.30 government official only includes service for the governmental 116.31 subdivision for which the official was elected by the 116.32 public-at-large. Service as an elected local government 116.33 official ceases and eligibility to participate terminates when 116.34 the person ceases to be an elected official. An elected local 116.35 government official does not include an elected county sheriff. 116.36 (c)Elected local government officials, physicians, first117.1response personnel and emergency medical service personnel, and117.2rescue squad personnelIndividuals otherwise eligible to 117.3 participate in the plan under this subdivision who are currently 117.4 covered by a public or private pension plan because of their 117.5 employment or provision of services are not eligible to 117.6 participate in the public employees defined contribution plan. 117.7 (d) A former participant is a person who has terminated 117.8 eligible employment or service and has not withdrawn the value 117.9 of the person's individual account. 117.10 Sec. 4. Minnesota Statutes 2002, section 353D.02, is 117.11 amended by adding a subdivision to read: 117.12 Subd. 5. [ST. PAUL PORT AUTHORITY PERSONNEL.] Employees of 117.13 the port authority of the city of St. Paul who do not elect to 117.14 participate in the general employees retirement plan may elect 117.15 to participate in the plan by filing a membership application on 117.16 a form prescribed by the executive director of the association 117.17 authorizing contributions to be deducted from the employee's 117.18 salary. Participation begins on the first day of the pay period 117.19 for which the contributions were deducted or, if pay period 117.20 coverage dates are not provided, the date on which the 117.21 membership application or the contributions are received in the 117.22 office of the association, whichever is received first, if the 117.23 membership application is received by the association within 60 117.24 days of the receipt of the contributions. An election to 117.25 participate in the plan is irrevocable. 117.26 Sec. 5. [RED WING ENVIRONMENTAL LEARNING CENTER.] 117.27 (a) The legislature finds that the Red Wing environmental 117.28 learning center has a long and very close relationship with 117.29 independent school district No. 256, Red Wing, that Red Wing 117.30 environmental learning center employees have been treated as 117.31 independent school district No. 256, Red Wing, employees for 117.32 retirement coverage purposes for 33 years, and that the current 117.33 learning center employees would suffer a significant loss in 117.34 their pension benefit coverage if their membership in the 117.35 general employees retirement plan of the public employees 117.36 retirement association was disrupted. 118.1 (b) Notwithstanding the provisions of any other law to the 118.2 contrary, independent school district No. 256, Red Wing, may 118.3 certify to the executive director of the public employees 118.4 retirement association that employees of the Red Wing 118.5 environmental learning center are considered school district 118.6 employees solely for purposes of retirement coverage by the 118.7 general employees retirement plan under Minnesota Statutes, 118.8 chapter 353. This status must be accorded to all similarly 118.9 situated Red Wing environmental learning center employees. 118.10 Sec. 6. [PERA-GENERAL; PRIOR ST. PAUL PORT AUTHORITY 118.11 SERVICE CREDIT PURCHASE.] 118.12 Subdivision 1. [ELIGIBILITY.] A full-time salaried 118.13 employee or a permanent part-time salaried employee of the port 118.14 authority of the city of St. Paul who was employed by the port 118.15 authority during all or part of the period from July 1, 1993, to 118.16 July 1, 2003, and who is a member of the general employees 118.17 retirement plan of the public employees retirement association 118.18 may purchase allowable service credit from the general employees 118.19 retirement plan. 118.20 Subd. 2. [PURCHASABLE SERVICE; MAXIMUM.] (a) The service 118.21 credit that is purchasable under subdivision 1 is a period or 118.22 periods of employment by the port authority of the city of St. 118.23 Paul that would have been eligible service for coverage by the 118.24 general employees retirement plan of the public employees 118.25 retirement association if the service had been rendered after 118.26 July 1, 2003. 118.27 (b) The maximum period of allowable service credit in the 118.28 general employees retirement plan of the public employees 118.29 retirement association for purchase under this section is ten 118.30 years. 118.31 Subd. 3. [PURCHASE PAYMENT REQUIREMENT.] (a) To purchase 118.32 the service credit, the payment amount must be calculated under 118.33 Minnesota Statutes, section 356.55. 118.34 (b) Notwithstanding any provision of Minnesota Statutes, 118.35 section 356.55, to the contrary, the prior service credit 118.36 purchase payment may be made in whole or in part on an 119.1 institution-to-institution basis from a plan qualified under the 119.2 federal Internal Revenue Code, section 401(a), 401(k), or 119.3 414(h), or from an annuity qualified under the federal Internal 119.4 Revenue Code, section 403, or from a deferred compensation plan 119.5 under the federal Internal Revenue Code, section 457, to the 119.6 extent permitted by the applicable federal law. In no event may 119.7 a prior service credit purchase transfer be paid directly to the 119.8 person purchasing the service. 119.9 Subd. 4. [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An 119.10 eligible person described in subdivision 1 must provide any 119.11 documentation related to eligibility to make this service credit 119.12 purchase required by the executive director of the public 119.13 employees retirement association. 119.14 (b) Allowable service credit for the purchase period or 119.15 periods must be granted by the general employees retirement plan 119.16 of the public employees retirement association on behalf of the 119.17 eligible person upon receipt of the prior service credit 119.18 purchase payment amount. 119.19 Subd. 5. [SUNSET.] Authority to purchase service credit 119.20 under this section expires on December 31, 2004. 119.21 Sec. 7. [PRIOR SERVICE; VESTING.] 119.22 For purposes of vesting under Minnesota Statutes, section 119.23 353.29, subdivision 1, only, a full-time salaried employee or a 119.24 permanent part-time salaried employee of the port authority of 119.25 the city of St. Paul who was employed by the port authority on 119.26 July 1, 2003, and who is a member of the general employees 119.27 retirement plan of the public employees retirement association 119.28 may use months of employment with the port authority before that 119.29 date. This service may not be used to calculate a retirement 119.30 annuity or a disability benefit provided for under Minnesota 119.31 Statutes, chapter 353. 119.32 Sec. 8. [DEFINED CONTRIBUTION PLAN; ONETIME ELECTION.] 119.33 Employees of the port authority of the city of St. Paul who 119.34 do not exercise the right to become members of the general 119.35 employees retirement plan of the public employees retirement 119.36 association under section 1 may, by onetime election, choose to 120.1 participate in the public employees retirement association's 120.2 defined contribution plan under Minnesota Statutes, sections 120.3 353D.01 to 353D.12. The election is irrevocable. 120.4 Sec. 9. [EFFECTIVE DATE.] 120.5 (a) Section 2 with respect to the Red Wing environmental 120.6 learning center, and section 5 are effective the day after the 120.7 school board of independent school district No. 256, Red Wing, 120.8 and its chief clerical officer timely complete their compliance 120.9 with Minnesota Statutes, section 645.021, subdivisions 2 and 3, 120.10 and certification to the executive director of the public 120.11 employees retirement association. 120.12 (b) Section 2, with respect to the port authority of the 120.13 city of St. Paul, is effective the day following final enactment. 120.14 (c) Sections 1, 3, 4, 5, 7, and 8 are effective the day 120.15 following final enactment. 120.16 (d) Coverage by the general employees retirement plan of 120.17 the public employees retirement association under sections 1 and 120.18 2 commences July 1, 2003. 120.19 ARTICLE 6 120.20 PRIOR SERVICE CREDIT PURCHASE 120.21 PROVISIONS 120.22 Section 1. Minnesota Statutes 2002, section 356.55, 120.23 subdivision 7, is amended to read: 120.24 Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 120.25 PROCEDURE.] (a) This section expires and is repealed on July 120.26 1,20032004. 120.27 (b) Authority for any public pension plan to accept a prior 120.28 service credit payment that is calculated in a timely fashion 120.29 under this section expires on October 1,20032004. 120.30 Sec. 2. Laws 1999, chapter 222, article 16, section 16, as 120.31 amended by Laws 2002, chapter 392, article 7, section 1, is 120.32 amended to read: 120.33 Sec. 16. [REPEALER.] 120.34 Sections 1 to 13 are repealed on May 16,20032004. 120.35 Sec. 3. Laws 2000, chapter 461, article 4, section 4, is 120.36 amended to read: 121.1 Sec. 4. [EFFECTIVE DATE; SUNSET REPEALER.] 121.2 (a) Sections 1, 2, and 3 are effective on the day following 121.3 final enactment. 121.4 (b) Sections 1, 2, and 3 are repealed on May 16,20032004. 121.5 Sec. 4. Laws 2000, chapter 461, article 12, section 20, as 121.6 amended by Laws 2002, chapter 392, article 7, section 2, is 121.7 amended to read: 121.8 Sec. 20. [EFFECTIVE DATE.] 121.9 (a) Sections 4, 5, and 11 to 20 are effective on the day 121.10 following final enactment. 121.11 (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 121.12 following final enactment and apply retroactively to a faculty 121.13 member of the Lake Superior College who was granted an extended 121.14 leave of absence under article 19, section 4, of the united 121.15 technical college educators master agreement for the 1999-2000 121.16 academic year prior to March 20, 2000. 121.17 (c) Sections 5, 11, and 14, paragraph (c), expire on May 121.18 16,20032004. 121.19 Sec. 5. Laws 2001, First Special Session chapter 10, 121.20 article 6, section 21, as amended by Laws 2002, chapter 392, 121.21 article 7, section 3, is amended to read: 121.22 Sec. 21. [EXPIRATION DATE.] 121.23 (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 121.24 18, 19, and 20 expire May 16,20032004. 121.25 (b) Sections 9 and 15 expire May 16,20032004. 121.26 Sec. 6. [PERA-GENERAL; SERVICE CREDIT PURCHASE 121.27 AUTHORIZED.] 121.28 (a) Notwithstanding any provision of law to the contrary, 121.29 an eligible person described in paragraph (b), (c), or (d) is 121.30 authorized to purchase allowable service credit from the general 121.31 employees retirement plan of the public employees retirement 121.32 association under Minnesota Statutes, section 356.55 or 356.551, 121.33 for the applicable period of prior employment as a council 121.34 member of the city of St. Louis Park which was not credited by 121.35 the general employees retirement plan of the public employees 121.36 retirement association as indicated in paragraph (e). 122.1 (b) An eligible person is a person who: 122.2 (1) is a current member of the St. Louis Park city council 122.3 and is a current member of the general employees retirement plan 122.4 of the public employees retirement association; 122.5 (2) was born on September 26, 1941; 122.6 (3) became a St. Louis Park city council member on January 122.7 1, 1996; and 122.8 (4) was not a member of the general employees retirement 122.9 plan of the public employees retirement association for the 122.10 period January 1, 1996, to January 29, 2000. 122.11 (c) An eligible person is a person who: 122.12 (1) is a current member of the St. Louis Park city council 122.13 and is a current member of the general employees retirement plan 122.14 of the public employees retirement association; 122.15 (2) was born on October 8, 1949; 122.16 (3) became a St. Louis Park city council member on June 8, 122.17 1999; and 122.18 (4) was not a member of the general employees retirement 122.19 plan of the public employees retirement association for the 122.20 period June 8, 1999, to January 12, 2002. 122.21 (d) An eligible person is a person who: 122.22 (1) is a current member of the St. Louis Park city council 122.23 and is a current member of the general employees retirement plan 122.24 of the public employees retirement association; 122.25 (2) was born on June 4, 1964; 122.26 (3) became a St. Louis Park city council member on November 122.27 18, 1997; and 122.28 (4) was not a member of the general employees retirement 122.29 plan of the public employees retirement association for the 122.30 period November 18, 1997, to March 9, 2002. 122.31 (e) The allowable service credit purchase period is limited 122.32 to the period of St. Louis Park city council service that was 122.33 not covered by the general employees retirement plan of the 122.34 public employees retirement association. 122.35 (f) The eligible person must provide all relevant 122.36 documentation of the applicability of the requirements set forth 123.1 in paragraph (b), (c), or (d) and any other applicable 123.2 information that the executive director of the public employees 123.3 retirement association may request. 123.4 (g) Allowable service credit for the purchase period must 123.5 be granted by the general employees retirement plan of the 123.6 public employees retirement association to the eligible person 123.7 upon receipt of the prior service credit purchase payment amount. 123.8 (h) Notwithstanding Minnesota Statutes, section 356.55, 123.9 subdivision 5, or 356.551, subdivision 2, whichever applies, the 123.10 city of St. Louis Park is not permitted to pay any portion of 123.11 the service credit purchase payment amount. 123.12 (i) The prior service credit purchase authority expires on 123.13 July 1, 2004, or on the date of the termination of active St. 123.14 Louis Park city council service by the eligible person, 123.15 whichever occurs earlier. 123.16 Sec. 7. [REPEALER.] 123.17 Minnesota Statutes 2002, sections 354.541 and 354A.109, are 123.18 repealed May 16, 2004. 123.19 Sec. 8. [EFFECTIVE DATE.] 123.20 Sections 1 to 7 are effective the day following final 123.21 enactment. 123.22 ARTICLE 7 123.23 GENERAL RETIREMENT CHANGES 123.24 Section 1. Minnesota Statutes 2002, section 356B.05, is 123.25 amended to read: 123.26 356B.05 [PUBLIC PENSION ADMINISTRATION LEGISLATION.] 123.27 (a) Proposed administrative legislation recommended by or 123.28 on behalf of the Minnesota state retirement system, the public 123.29 employees retirement association, the teachers retirement 123.30 association, the Minneapolis employees retirement fund,ora 123.31 first class city teachers retirement fund association, or the 123.32 Minnesota state colleges and universities system must be 123.33 presented to the legislative commission on pensions and 123.34 retirement, the state and local governmental operations 123.35 committee of the senate, and the governmental operations and 123.36 veterans affairs policy committee of the house of 124.1 representatives on or before October 1 of each year in order for 124.2 the proposed administrative legislation to be acted upon during 124.3 the upcoming legislative session. The executive director or the 124.4 deputy executive director of the legislative commission on 124.5 pensions and retirement shall provide written comments on the 124.6 proposed administrative provisions to the public pension plans 124.7 by November 15 of each year. 124.8 (b) Proposed administrative legislation recommended by or 124.9 on behalf of a public employee pension plan or system under 124.10 paragraph (a) must address provisions: 124.11 (1) authorizing allowable service credit for leaves of 124.12 absence and related circumstances; 124.13 (2) governing offsets or deductions from the amount of 124.14 disability benefits; 124.15 (3) authorizing the purchase of allowable service credit 124.16 for prior uncredited periods; 124.17 (4) governing subsequent employment earnings by reemployed 124.18 annuitants; and 124.19 (5) authorizing retroactive effect for retirement annuity 124.20 or benefit applications. 124.21 (c) Where possible and desirable, taking into account the 124.22 differences among the public pension plans in existing law and 124.23 the unique characteristics of the individual public pension fund 124.24 memberships, uniform provisions relating to paragraph (b) for 124.25 all applicable public pension plans must be presented for 124.26 consideration during the legislative session. Supporting 124.27 documentation setting forth the policy rationale for each set of 124.28 uniform provisions must accompany the proposed administrative 124.29 legislation. 124.30 Sec. 2. [ACTUARIAL STUDY OF COSTS TO RESTRUCTURE TEACHER 124.31 PLANS.] 124.32 Subdivision 1. [STUDY MANDATED.] The actuary retained by 124.33 the legislative commission on pensions and retirement shall 124.34 prepare an additional actuarial valuation report, using the 124.35 results of the 2003 actuarial valuation reports prepared under 124.36 Minnesota Statutes, section 356.215, that considers the 125.1 feasibility of restructuring the Minnesota teachers retirement 125.2 association, the Minneapolis teachers retirement fund 125.3 association, the St. Paul teachers retirement fund association, 125.4 and the Duluth teachers retirement plan and fund association 125.5 into a new restructured fund. 125.6 Subd. 2. [CONTENTS OF STUDY.] The actuarial valuation 125.7 report must be based on the proposals put forth in the report 125.8 mandated by the legislature in Laws 2001, First Special Session 125.9 chapter 10, article 11, section 20, and filed February 15, 2002, 125.10 including changes to the postretirement adjustment, benefits, 125.11 and restructuring administrative costs and including asset 125.12 transfers. 125.13 Subd. 3. [INFORMATION PROVIDED.] The executive director of 125.14 the teachers retirement association, the executive secretary of 125.15 the Duluth teachers retirement fund association, the executive 125.16 director of the St. Paul teachers retirement fund association, 125.17 and the executive director of the Minneapolis teachers 125.18 retirement fund association must consult with the task force 125.19 established under Laws 2001, First Special Session chapter 10, 125.20 article 11, section 20, and must provide the commission-retained 125.21 actuary with all necessary information requested for the 125.22 preparation of this report. 125.23 Subd. 4. [COSTS.] The cost of the actuarial valuation 125.24 report mandated in this section will be paid by the pension 125.25 funds named in this legislation. The cost must be allocated 125.26 equally between the four pension funds. The executive director 125.27 of the Minneapolis teachers retirement fund association shall 125.28 serve as the fiscal agent for this study, shall pay its cost, 125.29 and shall be reimbursed by the other three retirement funds for 125.30 their appropriate share. 125.31 Subd. 5. [FILING DATE.] The report must be filed by 125.32 January 15, 2004, with the chair of the legislative commission 125.33 on pensions and retirement, the chair of the senate committee on 125.34 state and local government operations, and the chair of the 125.35 house committee on government operations and veterans affairs 125.36 policy. 126.1 Sec. 3. [EFFECTIVE DATE.] 126.2 Sections 1 and 2 are effective the day following final 126.3 enactment. 126.4 ARTICLE 8 126.5 MINNEAPOLIS FIREFIGHTERS RELIEF 126.6 ASSOCIATION CHANGES 126.7 Section 1. Minnesota Statutes 2002, section 423C.08, is 126.8 amended to read: 126.9 423C.08 [MEMBER CONTRIBUTION REFUND TO BENEFICIARY UPON 126.10 DEATH.] 126.11 If an active, deferred, or retired member of the 126.12 association dies and no survivor benefit is payable, the 126.13 designated beneficiary of the decedent or, if none, the legal 126.14 representative of the estate of the decedent is entitled, upon 126.15 application, to a refund. The refund shall be an amount equal 126.16 to the member contributions to the credit of the decedent, plus 126.17 interest on those contributions at an annual compounded rate of 126.18 five percent from the first day of the month following the date 126.19 of the contribution to the first day of the month following the 126.20 date of death of the decedent, reduced by the sum of any service 126.21 pension or disability benefit previously paid by the fund to the 126.22 decedent. 126.23 Sec. 2. [INTENT.] 126.24 Section 1 is intended to bring the Minneapolis firefighters 126.25 relief association's statutory provision which provides for a 126.26 refund of member contributions where the decedent does not leave 126.27 a surviving spouse or children in conformance with Minnesota 126.28 Statutes, section 423A.18. 126.29 Sec. 3. Minnesota Statutes 2002, section 423C.03, 126.30 subdivision 3, is amended to read: 126.31 Subd. 3. [COMPENSATION OF OFFICERS AND BOARD MEMBERS.] 126.32 Notwithstanding any other law to the contrary, the association 126.33 may provide for payment of the following salaries to its 126.34 officers and board members: 126.35 (1) the executive secretary may receive a salary not 126.36 exceeding3050 percent of the maximum salary of a first grade 127.1 firefighter; 127.2 (2) the president may receive a salary not exceeding ten 127.3 percent of the maximum salary of a first grade firefighter; and 127.4 (3) all other elected members of the board may receive a 127.5 salary not exceeding 2.5 percent of the maximum salary of a 127.6 first grade firefighter. 127.7 [EFFECTIVE DATE.] (a) The board of the Minneapolis 127.8 firefighters relief association may increase the salary of the 127.9 executive secretary subject to the maximum set forth in this 127.10 section. 127.11 (b) Any salary increase under paragraph (a) may be 127.12 effective on September 1, 2002, or any time thereafter as 127.13 designated by the relief association board. 127.14 Sec. 4. [EFFECTIVE DATE.] 127.15 Section 1 is effective retroactively from September 25, 127.16 2001. Section 2 is effective the day following final enactment. 127.17 ARTICLE 9 127.18 PLYMOUTH VOLUNTEER FIREFIGHTER RELIEF 127.19 ASSOCIATION CHANGES 127.20 Section 1. Laws 1978, chapter 685, section 1, as amended 127.21 by Laws 1979, chapter 201, section 41, is amended to read: 127.22 Section 1. [PLYMOUTH VOLUNTEER FIREFIGHTERS' RELIEF 127.23 ASSOCIATION.] 127.24 The bylaws of the Plymouth firefighter's relief association 127.25 may be amended to provide for payment of a disability pension in 127.26 an amountequal to $8.50 per month per year of service, to a127.27maximum of $255 per monthconsistent with the ancillary benefit 127.28 requirements specified in Minnesota Statutes, section 424A.02, 127.29 subdivision 9, to a firefighterqualified pursuant todetermined 127.30 to be disabled, as defined in the bylaws of the association and 127.31 under procedures specified in those bylaws. No member shall be 127.32 entitled to draw both a disability pension and a service pension. 127.33 Sec. 2. Laws 1978, chapter 685, section 2, is amended to 127.34 read: 127.35 Sec. 2. The Plymouth firefighter's relief association may 127.36 provide for a benefit to the surviving spouse of a volunteer 128.1 firefighter who died, providing that the surviving spouse 128.2 qualifies under the terms of the bylaws, such benefit to be paid128.3as the bylaws of the association may provide, except that the128.4bylaws may not provide for a spouse's benefit of more than128.5$127.50 per month, and provided the benefit shall cease as of128.6the date of the spouse's remarriageand the benefit is 128.7 consistent with ancillary benefit requirements specified in 128.8 Minnesota Statutes, section 424A.02, subdivision 9. 128.9 Sec. 3. Laws 1978, chapter 685, section 3, is amended to 128.10 read: 128.11 Sec. 3. The Plymouth firefighter's relief association may 128.12 pay a pension for the children of deceased members, as the 128.13 association's bylaws may provide, consistent with ancillary 128.14 benefit requirements specified in Minnesota Statutes, section 128.15 424A.02, subdivision 9. 128.16 Sec. 4. Laws 1978, chapter 685, section 6, is amended to 128.17 read: 128.18 Sec. 6. (a) The bylaws of the Plymouth firefighter's 128.19 relief association may further provide that when any active or 128.20 deferred member of the association or anypensioner who is a128.21former memberdisabilitant or service pension recipient dies, 128.22 there may be paid a death or funeral benefit to defray or assist 128.23 the family of the deceased with funeral expenses. 128.24 (b) A benefit paid under this section due to the death of 128.25 an active or deferred member must conform to Minnesota Statutes, 128.26 section 424A.02, subdivision 9. 128.27 (c) A death or funeral benefit may be paid under this 128.28 section to the family of a deceased disabilitant or service 128.29 pensioner notwithstanding Minnesota Statutes, section 424A.02, 128.30 subdivision 9, providing that liabilities relating to this 128.31 benefit are recognized in determinations of actuarial condition 128.32 and funding costs, as determined under section 69.772 or 69.773, 128.33 whichever is applicable. Notwithstanding any law to the 128.34 contrary, the association is authorized to use a load factor or 128.35 factors to recognize liabilities relating to funeral or death 128.36 benefits paid to the family of a deceased disabilitant or 129.1 service pensioner. Benefits are not payable under this 129.2 paragraph if the city council does not approve the load factor 129.3 or factors used in determinations of actuarial conditions and 129.4 funding costs. 129.5 Sec. 5. [REPEALER.] 129.6 Laws 1978, chapter 685, section 5, is repealed. 129.7 Sec. 6. [EFFECTIVE DATE.] 129.8 Sections 1 to 5 are effective on the day after the date on 129.9 which the Plymouth city council and the chief clerical officer 129.10 of the city of Plymouth complete in a timely manner their 129.11 compliance with Minnesota Statutes, section 645.021, 129.12 subdivisions 2 and 3. 129.13 ARTICLE 10 129.14 VOLUNTEER FIREFIGHTER RELIEF 129.15 ASSOCIATION CHANGES 129.16 Section 1. Minnesota Statutes 2002, section 424A.02, 129.17 subdivision 3, is amended to read: 129.18 Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) Annually 129.19 on or before August 1of each yearas part of the certification 129.20 of the financial requirements and minimum municipal 129.21 obligationmade pursuant todetermined under section 69.772, 129.22 subdivision 4, or 69.773, subdivision 5, as applicable, the 129.23 secretary or some other official of the relief association 129.24 designated in the bylaws of each relief association shall 129.25 calculate and certify to the governing body of the applicable 129.26 qualified municipality the average amount of available financing 129.27 per active covered firefighter for the most recent three-year 129.28 period. The amount of available financing shall include any 129.29 amounts of fire state aid received or receivable by the relief 129.30 association, any amounts of municipal contributions to the 129.31 relief association raised from levies on real estate or from 129.32 other available revenue sources exclusive of fire state aid, and 129.33 one-tenth of the amount of assets in excess of the accrued 129.34 liabilities of the relief association calculatedpursuant to129.35sectionsunder section 69.772, subdivision 2; 69.773, 129.36 subdivisions 2 and 4; or 69.774, subdivision 2, if any. 130.1 (b) The maximum service pension which the relief 130.2 association has authority to provide for in its bylaws for 130.3 payment to a member retiring after the calculation date when the 130.4 minimum age and service requirements specified in subdivision 1 130.5 are met must be determined using the table in paragraph (c) or 130.6 (d), whichever applies. 130.7 (c) For a relief association where the governing bylaws 130.8 provide for a monthly service pension to a retiring member, the 130.9 maximum monthly service pension amount per month for each year 130.10 of service credited that may be provided for in the bylaws is 130.11 the maximum service pension figure corresponding to the average 130.12 amount of available financing per active covered firefighter: 130.13 Minimum Average Amount of Maximum Service Pension 130.14 Available Financing per Amount Payable per Month 130.15 Firefighter for Each Year of Service 130.16 $... $ .25 130.17 42 .50 130.18 84 1.00 130.19 126 1.50 130.20 168 2.00 130.21 209 2.50 130.22 252 3.00 130.23 294 3.50 130.24 335 4.00 130.25 378 4.50 130.26 420 5.00 130.27 503 6.00 130.28 587 7.00 130.29 672 8.00 130.30 755 9.00 130.31 839 10.00 130.32 923 11.00 130.33 1007 12.00 130.34 1090 13.00 130.35 1175 14.00 130.36 1259 15.00 131.1 1342 16.00 131.2 1427 17.00 131.3 1510 18.00 131.4 1594 19.00 131.5 1677 20.00 131.6 1762 21.00 131.7 1845 22.00 131.8 1888 22.50 131.9 1929 23.00 131.10 2014 24.00 131.11 2098 25.00 131.12 2183 26.00 131.13 2267 27.00 131.14 2351 28.00 131.15 2436 29.00 131.16 2520 30.00 131.17 2604 31.00 131.18 2689 32.00 131.19 2773 33.00 131.20 2857 34.00 131.21 2942 35.00 131.22 3026 36.00 131.23 3110 37.00 131.2439633194 38.00 131.2540473278 39.00 131.2641373362 40.00 131.27Effective beginning December 31, 2000:131.2842273446 41.00 131.2943173530 42.00 131.3044073614 43.00 131.3144973698 44.00 131.32Effective beginning December 31, 2001:131.3345873782 45.00 131.3446773866 46.00 131.3547673950 47.00 131.3648574034 48.00 132.1Effective beginning December 31, 2002:132.249474118 49.00 132.350374202 50.00 132.451274286 51.00 132.552174370 52.00 132.6 Effective beginning December 31, 2003: 132.753074454 53.00 132.853974538 54.00 132.954874622 55.00 132.1055774706 56.00 132.11 (d) For a relief association in which the governing bylaws 132.12 provide for a lump sum service pension to a retiring member, the 132.13 maximum lump sum service pension amount for each year of service 132.14 credited that may be provided for in the bylaws is the maximum 132.15 service pension figure corresponding to the average amount of 132.16 available financing per active covered firefighter for the 132.17 applicable specified period: 132.18 Minimum Average Amount Maximum Lump Sum Service 132.19 of Available Financing Pension Amount Payable 132.20 per Firefighter for Each Year of Service 132.21 $.. $10 132.22 11 20 132.23 16 30 132.24 23 40 132.25 27 50 132.26 32 60 132.27 43 80 132.28 54 100 132.29 65 120 132.30 77 140 132.31 86 160 132.32 97 180 132.33 108 200 132.34 131 240 132.35 151 280 132.36 173 320 133.1 194 360 133.2 216 400 133.3 239 440 133.4 259 480 133.5 281 520 133.6 302 560 133.7 324 600 133.8 347 640 133.9 367 680 133.10 389 720 133.11 410 760 133.12 432 800 133.13 486 900 133.14 540 1000 133.15 594 1100 133.16 648 1200 133.17 702 1300 133.18 756 1400 133.19 810 1500 133.20 864 1600 133.21 918 1700 133.22 972 1800 133.23 1026 1900 133.24 1080 2000 133.25 1134 2100 133.26 1188 2200 133.27 1242 2300 133.28 1296 2400 133.29 1350 2500 133.30 1404 2600 133.31 1458 2700 133.32 1512 2800 133.33 1566 2900 133.34 1620 3000 133.35 1672 3100 133.36 1726 3200 134.1 1753 3250 134.2 1780 3300 134.3 1820 3375 134.4 1834 3400 134.5 1888 3500 134.6 1942 3600 134.7 1996 3700 134.8 2023 3750 134.9 2050 3800 134.10 2104 3900 134.11 2158 4000 134.12 2212 4100 134.13 2265 4200 134.14 2319 4300 134.15 2373 4400 134.16 2427 4500 134.17 2481 4600 134.18 2535 4700 134.19 2589 4800 134.20 2643 4900 134.21 2697 5000 134.22 2751 5100 134.23 2805 5200 134.24 2859 5300 134.25 2913 5400 134.26 2967 5500 134.27Effective beginning December 31, 2000:134.28 3021 5600 134.29 3075 5700 134.30 3129 5800 134.31 3183 5900 134.32 3237 6000 134.33Effective beginning December 31, 2001:134.34 3291 6100 134.35 3345 6200 134.36 3399 6300 135.1 3453 6400 135.2 3507 6500 135.3Effective beginning December 31, 2002:135.4 3561 6600 135.5 3615 6700 135.6 3669 6800 135.7 3723 6900 135.8 3777 7000 135.9 Effective beginning December 31, 2003: 135.10 3831 7100 135.11 3885 7200 135.12 3939 7300 135.13 3993 7400 135.14 4047 7500 135.15 (e) For a relief association in which the governing bylaws 135.16 provide for a monthly benefit service pension as an alternative 135.17 form of service pension payment to a lump sum service pension, 135.18 the maximum service pension amount for each pension payment type 135.19 must be determined using the applicable table contained in this 135.20 subdivision. 135.21 (f) If a relief association establishes a service pension 135.22 in compliance with the applicable maximum contained in paragraph 135.23 (c) or (d) and the minimum average amount of available financing 135.24 per active covered firefighter is subsequently reduced because 135.25 of a reduction in fire state aid or because of an increase in 135.26 the number of active firefighters, the relief association may 135.27 continue to provide the prior service pension amount specified 135.28 in its bylaws, but may not increase the service pension amount 135.29 until the minimum average amount of available financing per 135.30 firefighter under the table in paragraph (c) or (d), whichever 135.31 applies, permits. 135.32 (g) No relief association is authorized to provide a 135.33 service pension in an amount greater than the largest applicable 135.34 flexible service pension maximum amount even if the amount of 135.35 available financing per firefighter is greater than the 135.36 financing amount associated with the largest applicable flexible 136.1 service pension maximum. 136.2 Sec. 2. [BENEFIT RATIFICATION; WHITE BEAR LAKE.] 136.3 Notwithstanding Minnesota Statutes, section 424A.02, 136.4 subdivisions 3 and 3a, to the contrary, the service pension 136.5 amounts specified in the bylaws of the White Bear Lake fire 136.6 department relief association following bylaw amendments in 136.7 January 1999 and prior to the effective date of this section are 136.8 ratified. 136.9 Sec. 3. [EFFECTIVE DATE.] 136.10 Sections 1 and 2 are effective the day following final 136.11 enactment. 136.12 ARTICLE 11 136.13 LOCAL RETIREMENT CHANGES 136.14 Section 1. Minnesota Statutes 2002, section 383B.49, is 136.15 amended to read: 136.16 383B.49 [SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF 136.17 SHARES.] 136.18 When requested to do so, in writing, on forms provided by 136.19 the county, by a participant, surviving spouse, a guardian of a 136.20 surviving child or a personal representative, whichever is 136.21 applicable, the county of Hennepin shall redeem shares in the 136.22 accounts of the Minnesota supplemental investment fund standing 136.23 in a participant's share account record under the following 136.24 circumstances and in accordance with the laws and regulations 136.25 governing the Minnesota supplemental investment fund: 136.26 (1) A participant who is no longer employed by the county 136.27 of Hennepin is entitled to receive the cash realized on the 136.28 redemption of the shares to the credit of the participant's 136.29 share account record of the person. The participant may request 136.30 the redemption of all or a portion of the shares in the 136.31 participant's share account record of the person, but may not 136.32 request more than one redemption in any one calendar year. If 136.33 only a portion of the shares in the participant's share account 136.34 record is requested to be redeemed the person may request to 136.35 redeem not less than 20 percent of the shares in any one 136.36 calendar year and the redemption must be completed in no more 137.1 than five years. An election is irrevocable except that a 137.2 participant may request an amendment of the election to redeem 137.3 all of the person's remaining shares. All requests under this 137.4 paragraph are subject to application to and approval of the 137.5 Hennepin countyboardadministrator, initsthe sole 137.6 discretion of the administrator. 137.7 (2) In the event of the death of a participant leaving a 137.8 surviving spouse, the surviving spouse is entitled to receive 137.9 the cash realized on the redemption of all or a portion of the 137.10 shares in the participant's share account record of the deceased 137.11 spouse, but in no event may the spouse request more than one 137.12 redemption in each calendar year. If only a portion of the 137.13 shares in the participant's share account record is requested to 137.14 be redeemed, the surviving spouse may request the redemption of 137.15 not less than 20 percent of the shares in any one calendar 137.16 year. Redemption must be completed in no more than five years. 137.17 An election is irrevocable except that the surviving spouse may 137.18 request an amendment of the election to redeem all of the 137.19 participant's remaining shares. All requests under this 137.20 paragraph are subject to application to and approval of the 137.21 Hennepin countyboardadministrator, initsthe sole 137.22 discretion of the administrator. Upon the death of the 137.23 surviving spouse, any shares remaining in the participant's 137.24 share account record must be redeemed by the county of Hennepin 137.25 and the cash realized from the redemption distributed to the 137.26 estate of the surviving spouse. 137.27 (3) In the event of the death of a participant leaving no 137.28 surviving spouse, but leaving a minor surviving child or minor 137.29 surviving children, the guardianship estate of the minor child 137.30 is, or the guardianship estates of the minor children are, 137.31 entitled to receive the cash realized on the redemption of all 137.32 shares to the credit of the participant's share account record 137.33 of the deceased participant. In the event of minor surviving 137.34 children, the cash realized must be paid in equal shares to the 137.35 guardianship estates of the minor surviving children. 137.36 (4) In the event of the death of a participant leaving no 138.1 surviving spouse and no minor surviving children, the estate of 138.2 the deceased participant is entitled to receive the cash 138.3 realized on the redemption of all shares to the credit of the 138.4 participant's share account record of the deceased participant. 138.5 Sec. 2. Minnesota Statutes 2002, section 383B.493, is 138.6 amended to read: 138.7 383B.493 [WITHDRAWAL FROM PARTICIPATION.] 138.8 Notwithstanding Laws 1982, chapter 450, or any other law to 138.9 the contrary, a Hennepin county employee participating in the 138.10 Hennepin county supplemental retirement program pursuant to Laws 138.11 1982, chapter 450 may, in the event of an unforeseeable 138.12 emergency, apply to the county to discontinue participation in 138.13 the program. Employees who are no longer participating in the 138.14 program may apply for the redemption of all shares credited to 138.15 their share account record. Applications are subject to 138.16 approval of the Hennepin countyboard of commissioners138.17 administrator initsthe sole discretion of the administrator. 138.18 For the purposes of this section, the term "unforeseeable 138.19 emergency" shall mean a severe financial hardship to the 138.20 participant resulting from a sudden and unexpected illness or 138.21 accident of the participant or a person dependent upon the 138.22 participant, loss of participant's property due to casualty, or 138.23 other similar extraordinary and unforeseeable circumstances 138.24 arising as a result of events beyond the control of the 138.25 participant. Applications based on foreseeable expenditures 138.26 normally budgetable shall not be approved. A participant 138.27 exercising the option provided by this section shall be 138.28 ineligible for further participation in the supplemental 138.29 retirement program. 138.30 Sec. 3. [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 138.31 HOC POSTRETIREMENT ADJUSTMENT.] 138.32 In addition to the current pensions and other retirement 138.33 benefits payable, the pensions and retirement benefits payable 138.34 to retired police officers and firefighters and their surviving 138.35 spouses by the Eveleth police and fire trust fund are increased 138.36 by $100 per month. Increases are retroactive from January 1, 139.1 2003. 139.2 Sec. 4. [MARSHALL VOLUNTEER FIRE.] 139.3 Notwithstanding any provision of Minnesota Statutes, 139.4 section 424A.02, subdivision 7, or other law to the contrary, as 139.5 a pilot project, the Marshall volunteer firefighter relief 139.6 association may amend its bylaws to pay interest on deferred 139.7 lump sum payment pensions based on a rate determined annually by 139.8 the board of trustees based on the actual time weighted total 139.9 rate of return investment performance of the special fund as 139.10 reported by the office of the state auditor under Minnesota 139.11 Statutes, section 356.219, up to five percent, and applied 139.12 consistently for all deferred service pensioners. 139.13 Sec. 5. [EFFECTIVE DATE.] 139.14 (a) Sections 1 and 2 are effective upon approval by the 139.15 Hennepin county board of commissioners and compliance with 139.16 Minnesota Statutes, section 645.021. 139.17 (b) Section 3 is effective the day after the date on which 139.18 the Eveleth city council and the chief clerical officer of the 139.19 city of Eveleth comply with Minnesota Statutes, section 645.021, 139.20 subdivisions 2 and 3. 139.21 (c) Section 4 is effective the day after the date on which 139.22 the Marshall city council and the chief clerical officer of the 139.23 city of Marshall comply with Minnesota Statutes, section 139.24 645.021, subdivisions 2 and 3. 139.25 ARTICLE 12 139.26 PRIOR SERVICE CREDIT PURCHASE PROVISIONS 139.27 Section 1. Laws 2000, chapter 461, article 19, section 6, 139.28 is amended to read: 139.29 Sec. 6. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 139.30 UNCREDITED TEACHING SERVICE PERIODS.] 139.31 (a) An eligible person described in paragraph (b) is 139.32 entitled to purchase allowable service credit from the 139.33 Minneapolis teachers retirement fund association basic program 139.34 for the periods of teaching employment specified in paragraph 139.35 (c) by making the payment required under Minnesota Statutes, 139.36 section 356.55. 140.1 (b) An eligible person is a person who: 140.2 (1) was employed by special school district No. 1 140.3 (Minneapolis) as a long call reserve teacher from October 1972 140.4 to June 1973 and was covered by the Minneapolis employees 140.5 retirement fund; 140.6 (2) was employed by special school district No. 1 140.7 (Minneapolis) as a school social worker at Franklin junior high 140.8 school from August 28, 1973, through June 12, 1974, and from 140.9 August 29, 1974, through June 11, 1975, without retirement 140.10 coverage; 140.11 (3) was employed by special school district No. 1 140.12 (Minneapolis) as a school social worker at North high school 140.13 from August 29, 1975, through December 19, 1975, covered by the 140.14 Minneapolis teachers retirement fund association; 140.15 (4) was retained by special school district No. 1 140.16 (Minneapolis) in the capacity of a school social worker at North 140.17 high school as an hourly wage social worker from August 1976 140.18 through June 1983 without retirement coverage; and 140.19 (5) is currently employed by Hennepin county covered by the 140.20 public employees retirement association. 140.21 (c) The periods for allowable service credit purchase are 140.22 August 28, 1973, through June 12, 1974; and August 29, 1974, 140.23 through June 11, 1975. 140.24 (d) An eligible person must provide any relevant 140.25 documentation related to eligibility to make this service credit 140.26 purchase required by the executive director of the Minneapolis 140.27 teachers retirement fund association. 140.28 (e) Allowable service credit for the purchase periods must 140.29 be granted by the Minneapolis teachers retirement fund 140.30 association to the account of the eligible person upon receipt 140.31 of the prior service credit purchase payment amount. Authority 140.32 provided by this section is voided if payment is not made before 140.33 December 31, 2003, or before commencing receipt of an annuity 140.34 from the Minneapolis teachers retirement fund association, 140.35 whichever is earlier. 140.36 (f) The prior service credit purchase paymentamount shall141.1be computed by the actuary retained by the legislative141.2commission on pensions and retirement. Thatcomputation must 141.3 give recognition, in applying the process stated in Minnesota 141.4 Statutes, section 356.55,give recognitionto the liabilities 141.5 that would be created in the Minneapolis teachers retirement 141.6 fund association and other Minnesota public pension funds due to 141.7 the service credit purchase. 141.8 (g) Following receipt of that purchase payment amount, the 141.9 executive director of the Minneapolis teachers retirement fund 141.10 association shall allocate and transmit that amount to the 141.11 applicable pension administrations, as determined under 141.12 paragraph (f). 141.13 Sec. 2. [TEACHERS RETIREMENT ASSOCIATION; SERVICE CREDIT 141.14 PURCHASE FOR SABBATICAL LEAVES.] 141.15 (a) Notwithstanding Minnesota Statutes, section 354.092, or 141.16 any other law to the contrary, an eligible person described in 141.17 paragraph (b) is entitled to purchase not more than three years 141.18 of allowable service credit from the teachers retirement 141.19 association for sabbatical leave as defined in Minnesota 141.20 Statutes, section 122A.49. 141.21 (b) An eligible person is a person who: 141.22 (1) worked as a teacher for independent school district No. 141.23 191, Burnsville-Eagan-Savage; 141.24 (2) was on sabbatical leave at some time between January 1, 141.25 1982, and December 31, 1989; and 141.26 (3) did not receive service credit for time on sabbatical 141.27 leave because the leave was not properly reported to the 141.28 teachers retirement association. 141.29 (c) An eligible person described in paragraph (b) must 141.30 apply with the executive director of the teachers retirement 141.31 association to make a service credit purchase under this 141.32 section. The application must be in writing and must include 141.33 all necessary documentation of the applicability of this section 141.34 and any other relevant information that the executive director 141.35 may require. 141.36 (d) Allowable service credit for the purchase periods must 142.1 be granted by the teachers retirement association to the account 142.2 of an eligible person upon receipt of the portion of the prior 142.3 service credit purchase payment amount payable under paragraph 142.4 (e) in a lump sum by the applicable eligible person. 142.5 (e) Notwithstanding Minnesota Statutes, section 356.55 or 142.6 356.551, whichever is applicable, an eligible person may pay 142.7 before September 1, 2003, or the date of termination from 142.8 service, whichever is earlier, an amount equal to the employee 142.9 contribution rate or rates in effect during the applicable 142.10 sabbatical leave period or periods specified in paragraph (b) 142.11 applied to the actual salary rate or rates in effect during that 142.12 period or periods, plus annual compound interest at the rate of 142.13 8.5 percent from the midpoint of each applicable sabbatical 142.14 leave period, to the date on which the payment is actually 142.15 made. Independent school district No. 191 must pay the 142.16 remaining balance of the prior service credit purchase payment 142.17 amount calculated under Minnesota Statutes, section 356.55 or 142.18 356.551, whichever is applicable, within 30 days of the payment 142.19 by an eligible person. The executive director of the teachers 142.20 retirement association must notify the superintendent of 142.21 independent school district No. 191 of its payment amount and 142.22 payment due date if an eligible person makes the required 142.23 payment. 142.24 (f) If independent school district No. 191 fails to pay its 142.25 portion of the required prior service credit purchase payment 142.26 amount, the executive director of the teachers retirement 142.27 association must notify the commissioner of finance of that fact 142.28 and the commissioner of finance must order that the required 142.29 employer payment be deducted from the next subsequent payment or 142.30 payments of state education aid to the school district and be 142.31 transmitted to the teachers retirement association. 142.32 Sec. 3. [SPECIAL SCHOOL DISTRICT NO. 1; QUALIFIED 142.33 PART-TIME TEACHER PROGRAM RETROACTIVE COVERAGE.] 142.34 (a) An eligible individual is a teacher who: 142.35 (1) was born on March 10, 1950; 142.36 (2) is a basic plan member of the Minneapolis teachers 143.1 retirement fund association; 143.2 (3) first became a Minneapolis teachers retirement fund 143.3 association member in August 1972; and 143.4 (4) entered into a job sharing arrangement with another 143.5 Minneapolis teachers retirement fund association member for the 143.6 2001-2002 school year but failed to enter into a qualified 143.7 part-time teacher agreement for that school year. 143.8 (b) Notwithstanding any provision of Minnesota Statutes, 143.9 section 354A.094, to the contrary, an eligible individual 143.10 described in paragraph (a) is authorized to receive full-time 143.11 salary and service credit in the Minneapolis teachers retirement 143.12 fund association basic program for service under Minnesota 143.13 Statutes, section 354A.094, for the 2001-2002 school year, if 143.14 all conditions required by this section are met. 143.15 (c) To receive the full-time equivalent service and salary 143.16 credit for the 2001-2002 school year provided by this section, 143.17 an eligible individual described in paragraph (a) must pay the 143.18 applicable employee contribution under Minnesota Statutes, 143.19 section 354A.12, subdivision 1, on the difference between the 143.20 amount of the person's compensation from which employee 143.21 contributions were actually deducted and the amount of the 143.22 person's full-time equivalent salary under Minnesota Statutes, 143.23 section 354A.094, subdivision 4. The employee must pay 8.5 143.24 percent interest, compounded daily, on all employee 143.25 contributions required under this section, from the date the 143.26 contributions would have occurred if the individual were 143.27 employed on a full-time basis, until paid. 143.28 (d) If payment is made under paragraph (c), upon 143.29 notification from the Minneapolis teachers retirement fund 143.30 association, special school district No. 1, Minneapolis, must 143.31 pay the applicable employer and additional employer 143.32 contributions under Minnesota Statutes, section 354A.12, 143.33 subdivision 2a, on the difference between the person's full-time 143.34 equivalent salary and actual salary upon which contributions 143.35 were previously made for the eligible individual. The employer 143.36 must pay 8.5 percent interest, compounded daily, on all employer 144.1 and employer additional contributions required under this 144.2 section, from the date the contributions would have occurred if 144.3 the individual were employed on a full-time basis, until paid. 144.4 (e) Payments under this section must be made in a lump sum 144.5 to the Minneapolis teachers retirement fund association. 144.6 Payment under paragraph (c) must occur on or before June 30, 144.7 2003, or the effective date of retirement, whichever is 144.8 earlier. Payment by the employer under paragraph (d) must be 144.9 made within 30 days following payment by the eligible employee. 144.10 (f) The eligible person must provide any relevant 144.11 documentation that the Minneapolis teachers retirement fund 144.12 association may request. 144.13 Sec. 4. [EFFECTIVE DATE.] 144.14 This article is effective the day following final enactment. 144.15 ARTICLE 13 144.16 VARIOUS ONE PERSON AND SMALL GROUP 144.17 RETIREMENT CHANGES 144.18 Section 1. [TEACHERS RETIREMENT ASSOCIATION; COVERAGE 144.19 ELECTION OPTION DEADLINE EXTENSION.] 144.20 (a) Notwithstanding any provision of Minnesota Statutes, 144.21 section 354B.21, subdivision 2 or 3 to the contrary, an eligible 144.22 person described in paragraph (b) is entitled to elect to 144.23 continue retirement coverage by the teachers retirement 144.24 association. 144.25 (b) An eligible person is a person who: 144.26 (1) was born on May 5, 1960; 144.27 (2) was first employed as a teacher for the 1982-1983 144.28 school year; 144.29 (3) was employed as a teacher by independent school 144.30 district No. 345, New London-Spicer, from the 1984-1985 school 144.31 year until the 1994-1995 school year; 144.32 (4) was employed as a teacher by independent school 144.33 district No. 858, St. Charles, from the 1995-1996 school year 144.34 through the 2001-2002 school year; 144.35 (5) was employed by the Riverland community college on 144.36 August 22, 2002; and 145.1 (6) received a Minnesota state colleges and universities 145.2 system retirement plan election form on August 27, 2002, but did 145.3 not file the form by December 4, 2002, and received individual 145.4 retirement account retirement plan coverage by default. 145.5 (c) The election of teachers retirement coverage must be 145.6 made in writing by the eligible person and must be made on or 145.7 before September 1, 2003. 145.8 (d) If an election of teachers retirement association 145.9 coverage is made under this section, the Minnesota state 145.10 colleges and universities system shall transfer from the 145.11 individual retirement account plan member and employer 145.12 contributions equal to ten percent of the eligible person's 145.13 covered salary as an employee of the system from August 22, 145.14 2002, to the date of the coverage election under this section, 145.15 plus annual interest at the rate of 8.5 percent. Upon the 145.16 contribution transfer, the teachers retirement association shall 145.17 credit the eligible person with allowable and formula service 145.18 credit for the period August 22, 2002, to the date of the 145.19 coverage election. 145.20 Sec. 2. [EFFECTIVE DATE.] 145.21 Section 1 is effective on the day following final enactment. 145.22 ARTICLE 14 145.23 EXTENDED LEAVES 145.24 Section 1. Minnesota Statutes 2002, section 122A.46, 145.25 subdivision 9, is amended to read: 145.26 Subd. 9. [BENEFITS.] A teacher on an extended leave of 145.27 absence shall receive all of the health, accident, medical, 145.28 surgical and hospitalization insurance or benefits, for both the 145.29 teacher and the teacher's dependents, for which the teacher 145.30 would otherwise be eligible if not on an extended leave. A 145.31 teacher shall receive the coverage if such coverage is available 145.32 from the school district's insurer, if the teacher requests the 145.33 coverage, and if the teacher either (a) reimburses the district 145.34 for the full amount of the premium necessary to maintain the 145.35 coverage within one monthfollowingpreceding the district's 145.36 payment of the premium, or (b) if the district is wholly or 146.1 partially self-insured, pays the district, according to a 146.2 schedule agreed upon by the teacher and the school board, an 146.3 amount determined by the school board to be the amount that 146.4 would be charged for the coverage chosen by the teacher if the 146.5 school board purchased all health, accident, medical, surgical 146.6 and hospitalization coverage for its teachers from an 146.7 insurer. A school district may enter into an agreement with a 146.8 teacher in the district where the district agrees to pay all or 146.9 a portion of the premium for such coverage. Any such agreement 146.10 must include a sunset of eligibility to qualify for the payment. 146.11 [EFFECTIVE DATE.] This section is effective the day 146.12 following final enactment and applies to agreements in effect or 146.13 entered into after that date. The sunset date of eligibility 146.14 must not extend beyond June 30, 2005. The amendments to this 146.15 section expire on July 1, 2005. 146.16 Sec. 2. Minnesota Statutes 2002, section 354.094, 146.17 subdivision 1, is amended to read: 146.18 Subdivision 1. [SERVICE CREDIT CONTRIBUTIONS.] Upon 146.19 granting any extended leave of absence under section 122A.46 or 146.20 136F.43, the employing unit granting the leave must certify the 146.21 leave to the association on a form specified by the executive 146.22 director. A member granted an extended leave of absence under 146.23 section 122A.46 or 136F.43 may pay employee contributions and 146.24 receive allowable service credit toward annuities and other 146.25 benefits under this chapter, for each year of the leave, 146.26 provided that the member and the employing board make the 146.27 required employer contribution in any proportion they may agree 146.28 upon, during the period of the leave. The employer may enter 146.29 into an agreement with a teacher in the district under which all 146.30 or a portion of the employee's contribution is paid by the 146.31 employer. Any such agreement must include a sunset of 146.32 eligibility to qualify for the payment and must not be a part of 146.33 the collective bargaining agreement. The leave period must not 146.34 exceed five years. A member may not receive more than five 146.35 years of allowable service credit under this section. The 146.36 employee and employer contributions must be based upon the rates 147.1 of contribution prescribed by section 354.42 for the salary 147.2 received during the year immediately preceding the extended 147.3 leave. Payments for the years for which a member is receiving 147.4 service credit while on extended leave must be made on or before 147.5 the later of June 30 of each fiscal year for which service 147.6 credit is received or within 30 days after first notification of 147.7 the amount due, if requested by the member, is given by the 147.8 association. No payment is permitted after the following 147.9 September 30. Payments received after June 30 must include 147.10 interest at an annual rate of 8.5 percent from June 30 through 147.11 the end of the month in which payment is received. 147.12 Notwithstanding the provisions of any agreements to the 147.13 contrary, employee and employer contributions may not be made to 147.14 receive allowable service credit if the member does not have 147.15 full reinstatement rights as provided in section 122A.46 or 147.16 136F.43, both during and at the end of the extended leave. 147.17 Any school district paying the employee's retirement 147.18 contributions under this section shall forward to the applicable 147.19 retirement association or retirement fund a copy of the 147.20 agreement executed by the school district and the employee. 147.21 [EFFECTIVE DATE.] This section is effective the day 147.22 following final enactment and applies to agreements in effect or 147.23 entered into after that date. The sunset date of eligibility 147.24 must not extend beyond June 30, 2005. The amendments to this 147.25 section expire on July 1, 2005. 147.26 Sec. 3. [REPORT.] 147.27 By February 1, 2005, the executive director of the teachers 147.28 retirement association, the executive secretary of the Duluth 147.29 teachers retirement fund association, the executive director of 147.30 the St. Paul teachers retirement fund association, and the 147.31 executive director of the Minneapolis teachers retirement fund 147.32 association shall submit a report to the chair of the 147.33 legislative commission on pensions and retirement summarizing 147.34 the agreements entered into under Minnesota Statutes, section 147.35 354.094, subdivision 1, on or before December 31, 2004.