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HF 1481

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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  1.1                          A bill for an act 
  1.2             relating to government operations; appropriating money 
  1.3             for the general legislative and administrative 
  1.4             expenses of state government; regulating state and 
  1.5             local government operations; modifying provisions 
  1.6             related to public employment; ratifying certain labor 
  1.7             agreements and compensation plans; regulating 
  1.8             elections and campaign finance; regulating Minneapolis 
  1.9             teacher pensions; modifying provisions related to the 
  1.10            military and veterans; providing conforming 
  1.11            amendments; amending Minnesota Statutes 2004, sections 
  1.12            3.011; 3.012; 3.02; 3.9223, subdivision 5; 3.9225, 
  1.13            subdivision 5; 3.9226, subdivision 5; 10A.01, 
  1.14            subdivisions 5, 21, 23, 26; 10A.025, by adding a 
  1.15            subdivision; 10A.071, subdivision 3; 10A.08; 10A.20, 
  1.16            subdivisions 2, 5, by adding a subdivision; 10A.27, 
  1.17            subdivision 1; 10A.28, subdivision 2; 10A.31, 
  1.18            subdivisions 1, 3, 4, 5, 6a; 11A.04; 11A.07, 
  1.19            subdivisions 4, 5; 11A.24, subdivision 6; 13.635, by 
  1.20            adding a subdivision; 14.19; 15.054; 15B.17, 
  1.21            subdivision 1; 16A.103, by adding a subdivision; 
  1.22            16A.1286, subdivisions 2, 3; 16A.152, subdivision 2; 
  1.23            16A.1522, subdivision 1; 16A.281; 16B.52, subdivision 
  1.24            1; 16C.10, subdivision 7; 16C.144; 16C.16, subdivision 
  1.25            1, by adding a subdivision; 16C.23, by adding a 
  1.26            subdivision; 43A.183; 43A.23, subdivision 1; 123B.63, 
  1.27            subdivision 3; 126C.17, subdivision 11; 190.16, by 
  1.28            adding a subdivision; 192.19; 192.261, subdivisions 1, 
  1.29            2; 192.501, subdivision 2; 193.29, subdivision 3; 
  1.30            193.30; 193.31; 197.608, subdivision 5; 200.02, 
  1.31            subdivisions 7, 23, by adding a subdivision; 201.022, 
  1.32            by adding a subdivision; 201.061, subdivision 3; 
  1.33            201.071, subdivision 1; 201.091, subdivision 5; 
  1.34            203B.01, subdivision 3; 203B.02, subdivision 1; 
  1.35            203B.04, subdivisions 1, 4, by adding a subdivision; 
  1.36            203B.07, subdivision 2; 203B.11, subdivision 1; 
  1.37            203B.12, subdivision 2; 203B.20; 203B.21, subdivisions 
  1.38            1, 3; 203B.24, subdivision 1; 204B.10, subdivision 6; 
  1.39            204B.14, subdivision 2; 204B.16, subdivisions 1, 5; 
  1.40            204B.18, subdivision 1; 204B.22, subdivision 3; 
  1.41            204B.27, subdivisions 1, 3; 204B.33; 204C.05, 
  1.42            subdivision 1a, by adding a subdivision; 204C.08, 
  1.43            subdivision 1; 204C.24, subdivision 1; 204C.28, 
  1.44            subdivision 1; 204C.50, subdivisions 1, 2; 204D.03, 
  1.45            subdivision 1; 204D.14, subdivision 3; 204D.27, 
  1.46            subdivision 5; 205.10, subdivision 3; 205.175, 
  2.1             subdivision 2; 205A.05, subdivision 1; 205A.09, 
  2.2             subdivision 1; 206.56, subdivisions 2, 3, 7, 8, 9, by 
  2.3             adding subdivisions; 206.57, subdivisions 1, 5, by 
  2.4             adding a subdivision; 206.58, subdivision 1; 206.61, 
  2.5             subdivisions 4, 5; 206.64, subdivision 1; 206.80; 
  2.6             206.81; 206.82, subdivisions 1, 2; 206.83; 206.84, 
  2.7             subdivisions 1, 3, 6; 206.85, subdivision 1; 206.90, 
  2.8             subdivisions 1, 4, 5, 6, 8, 9; 208.03; 208.04, 
  2.9             subdivision 1; 208.05; 208.06; 208.07; 208.08; 
  2.10            211B.01, subdivision 3; 240A.02, subdivision 3; 
  2.11            354A.08; 354A.12, subdivisions 3a, 3b; 358.11; 373.40, 
  2.12            subdivision 2; 375.20; 394.25, by adding a 
  2.13            subdivision; 447.32, subdivision 4; 458.40; 462.357, 
  2.14            by adding a subdivision; 465.82, subdivision 2; 
  2.15            465.84; 469.053, subdivision 5; 469.0724; 469.190, 
  2.16            subdivision 5; 471.345, by adding a subdivision; 
  2.17            471.975; 473.147, by adding a subdivision; 475.521, 
  2.18            subdivision 2; 475.58, subdivisions 1, 1a; 475.59; 
  2.19            Laws 2000, chapter 461, article 4, section 4, as 
  2.20            amended; proposing coding for new law in Minnesota 
  2.21            Statutes, chapters 3; 4; 5; 6; 8; 14; 15; 15B; 16A; 
  2.22            16B; 16C; 43A; 196; 197; 204D; 205; 205A; 206; 298; 
  2.23            354A; 471; proposing coding for new law as Minnesota 
  2.24            Statutes, chapter 471B; repealing Minnesota Statutes 
  2.25            2004, sections 3.9222; 16A.151, subdivision 5; 16A.30; 
  2.26            16B.33; 43A.11, subdivision 2; 197.455, subdivision 3; 
  2.27            204B.22, subdivision 2; 204C.05, subdivisions 1a, 1b; 
  2.28            204C.50, subdivision 7; 205.175; 205A.09; 240A.08; 
  2.29            354A.28; Minnesota Rules, parts 4501.0300, subparts 1, 
  2.30            4; 4501.0500, subpart 4; 4501.0600; 4503.0200, subpart 
  2.31            4; 4503.0300, subpart 2; 4503.0400, subpart 2; 
  2.32            4503.0500, subpart 9; 4503.0800, subpart 1. 
  2.33  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.34                             ARTICLE 1
  2.35                  STATE GOVERNMENT APPROPRIATIONS
  2.36  Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
  2.37     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.38  appropriated from the general fund, or another fund named, to 
  2.39  the agencies and for the purposes specified in this act, to be 
  2.40  available for the fiscal years indicated for each purpose.  The 
  2.41  figures "2006" and "2007," where used in this act, mean that the 
  2.42  appropriation or appropriations listed under them are available 
  2.43  for the year ending June 30, 2006, or June 30, 2007, 
  2.44  respectively.  
  2.45                                             APPROPRIATIONS 
  2.46                                         Available for the Year 
  2.47                                             Ending June 30 
  2.48                                            2006         2007 
  2.49  Sec. 2.  LEGISLATURE 
  2.50  Subdivision 1.  Total 
  2.51  Appropriation                     $   55,340,000 $   55,341,000
  2.52                Summary by Fund
  2.53  General              55,212,000    55,213,000
  3.1   Health Care Access      128,000       128,000
  3.2   The limitations on use of funds 
  3.3   specified in Minnesota Statutes, 
  3.4   section 16A.281, does not apply to any 
  3.5   entity in the legislative branch during 
  3.6   the biennium ending June 30, 2007. 
  3.7   The amounts that may be spent from this 
  3.8   appropriation for each program are 
  3.9   specified in the following subdivisions.
  3.10  Subd. 2.  Senate 
  3.11        17,644,000    17,645,000
  3.12  During the biennium ending June 30, 
  3.13  2007, the senate may not reimburse a 
  3.14  member for monthly housing expenses for 
  3.15  more than six months in a calendar year.
  3.16  Subd. 3.  House of Representatives 
  3.17       25,343,000    25,343,000 
  3.18  Subd. 4.  Legislative 
  3.19  Coordinating Commission    
  3.20       12,353,000    12,353,000
  3.21                Summary by Fund
  3.22  General              12,225,000    12,225,000
  3.23  Health Care Access      128,000       128,000
  3.24  $360,000 the first year and $360,000 
  3.25  the second year are for public 
  3.26  information television, Internet, 
  3.27  Intranet, and other transmission of 
  3.28  legislative activities. 
  3.29  The Legislative Coordinating 
  3.30  Commission, in consultation with the 
  3.31  house of representatives and senate, 
  3.32  shall recommend the allocation of funds 
  3.33  within this subdivision. 
  3.34  On July 1, 2005, the commissioner of 
  3.35  finance shall transfer $1,764,000 of 
  3.36  unspent fees from the special revenue 
  3.37  fund dedicated for the Electronic Real 
  3.38  Estate Recording Task Force to the 
  3.39  general fund. 
  3.40  On July 1, 2005, the commissioner of 
  3.41  finance shall transfer $3,329,000 of 
  3.42  the senate accumulated carryforward 
  3.43  account balance to the general fund. 
  3.44  Sec. 3.  GOVERNOR AND 
  3.45  LIEUTENANT GOVERNOR                    3,497,000      3,496,000
  3.46  This appropriation is to fund the 
  3.47  offices of the governor and lieutenant 
  3.48  governor.  
  3.49  $19,000 the first year and $19,000 the 
  3.50  second year are for necessary expenses 
  3.51  in the normal performance of the 
  3.52  governor's and lieutenant governor's 
  4.1   duties for which no other reimbursement 
  4.2   is provided. 
  4.3   Sec. 4.  STATE AUDITOR                 9,266,000      9,303,000
  4.4   $1,010,000 the first year and 
  4.5   $1,047,000 the second year are to 
  4.6   restore audit practice division 
  4.7   staffing levels that were reduced in 
  4.8   the previous biennium. 
  4.9   Sec. 5.  ATTORNEY GENERAL             24,677,000     24,718,000
  4.10                Summary by Fund
  4.11  General              22,270,000    22,295,000
  4.12  State Government
  4.13  Special Revenue       1,778,000     1,794,000
  4.14  Environmental           145,000       145,000 
  4.15  Remediation             484,000       484,000 
  4.16  Sec. 6.  SECRETARY OF STATE            5,867,000      6,038,000
  4.17  Sec. 7.  CAMPAIGN FINANCE AND 
  4.18  PUBLIC DISCLOSURE BOARD                  694,000        694,000
  4.19  Sec. 8.  INVESTMENT BOARD                217,000        217,000
  4.20  Sec. 9.  ADMINISTRATIVE HEARINGS       7,714,000      7,620,000
  4.21                Summary by Fund
  4.22  General                 262,000       262,000
  4.23  Workers'
  4.24  Compensation          7,452,000     7,358,000
  4.25  Fee rates charged during fiscal years 
  4.26  2006 and 2007 by the Administrative Law 
  4.27  Division of the Office of 
  4.28  Administrative Hearings shall be those 
  4.29  approved by the commissioner of finance 
  4.30  pursuant to Minnesota Statutes, section 
  4.31  16A.126. 
  4.32  Sec. 10.  ADMINISTRATION 
  4.33  Subdivision 1.  Total      
  4.34  Appropriation                         28,394,000     21,442,000
  4.35  The amounts that may be spent from this 
  4.36  appropriation for each program are 
  4.37  specified in the following subdivisions.
  4.38  Subd. 2.  Technology Services   
  4.39       1,803,000      1,803,000
  4.40  Subd. 3.  State Facilities Services
  4.41       17,598,000     10,946,000
  4.42  $6,652,000 the first year is for 
  4.43  onetime funding of agency relocation 
  4.44  expenses.  The Department of Human 
  4.45  Services will obtain federal 
  4.46  reimbursement for associated relocation 
  4.47  expenses.  This amount, estimated to be 
  5.1   $1,870,000, will be deposited in the 
  5.2   general fund. 
  5.3   $7,888,000 the first year and 
  5.4   $7,888,000 the second year are for 
  5.5   office space costs of the legislature 
  5.6   and veterans organizations, for 
  5.7   ceremonial space, and for statutorily 
  5.8   free space.  
  5.9   $2,000,000 of the balance in the state 
  5.10  building code account in the state 
  5.11  government special revenue fund is 
  5.12  canceled to the general fund. 
  5.13  $2,500,000 the first year and 
  5.14  $2,500,000 the second year of the 
  5.15  balance in the facilities repair and 
  5.16  replacement account in the special 
  5.17  revenue fund is canceled to the general 
  5.18  fund. 
  5.19  Subd. 4.  State and Community Services
  5.20        2,665,000     2,465,000
  5.21  $458,000 the first year and $258,000 
  5.22  the second year are for the Land 
  5.23  Management Information Center. 
  5.24  Subd. 5.  Administrative Management Services
  5.25       4,662,000      4,562,000 
  5.26  $100,000 the first year is for a 
  5.27  onetime grant to Assistive Technology 
  5.28  of Minnesota to administer a microloan 
  5.29  program to support purchase of 
  5.30  equipment and devices for people with 
  5.31  disabilities and their families and 
  5.32  employers, and to develop the Access to 
  5.33  Telework program. 
  5.34  Subd. 6. Public Broadcasting 
  5.35        1,666,000     1,666,000
  5.36  $951,000 the first year and $951,000 
  5.37  the second year are for matching grants 
  5.38  for public television. 
  5.39  $393,000 the first year and $393,000 
  5.40  the second year are for public 
  5.41  television equipment grants. 
  5.42  Equipment or matching grant allocations 
  5.43  shall be made after considering the 
  5.44  recommendations of the Minnesota Public 
  5.45  Television Association. 
  5.46  $17,000 the first year and $17,000 the 
  5.47  second year are for grants to the Twin 
  5.48  Cities regional cable channel. 
  5.49  $305,000 the first year and $305,000 
  5.50  the second year are for community 
  5.51  service grants to public educational 
  5.52  radio stations.  The grants must be 
  5.53  allocated after considering the 
  5.54  recommendations of the Association of 
  5.55  Minnesota Public Educational Radio 
  6.1   Stations under Minnesota Statutes, 
  6.2   section 129D.14. 
  6.3   Sec. 11.  CAPITOL AREA ARCHITECTURAL
  6.4   AND PLANNING BOARD                       262,000        262,000
  6.5   Sec. 12.  FINANCE 
  6.6   Subdivision 1.  Total 
  6.7   Appropriation                         14,808,000     14,808,000
  6.8   The amounts that may be spent from this 
  6.9   appropriation for each program are 
  6.10  specified in the following subdivisions.
  6.11  Subd. 2.  State Financial Management 
  6.12       8,447,000      8,447,000
  6.13  Subd. 3.  Information and 
  6.14  Management Services 
  6.15       6,361,000      6,361,000
  6.16  Sec. 13.  EMPLOYEE RELATIONS           5,667,000      5,556,000 
  6.17  Sec. 14.  REVENUE 
  6.18  Subdivision 1.  Total  
  6.19  Appropriation                         99,911,000    102,635,000
  6.20                Summary by Fund
  6.21  General              95,869,000    98,593,000
  6.22  Health Care Access    1,654,000     1,654,000
  6.23  Highway User 
  6.24  Tax Distribution      2,097,000     2,097,000
  6.25  Environmental           291,000       291,000
  6.26  The amounts that may be spent from this 
  6.27  appropriation for each program are 
  6.28  specified in the following subdivisions.
  6.29  Subd. 2.  Tax System Management
  6.30      83,497,000     85,591,000
  6.31                Summary by Fund
  6.32  General              79,455,000    81,549,000
  6.33  Health Care Access    1,654,000     1,654,000
  6.34  Highway User 
  6.35  Tax Distribution      2,097,000     2,097,000
  6.36  Environmental           291,000       291,000
  6.37  $5,096,000 the first year and 
  6.38  $6,190,000 the second year are for 
  6.39  additional activities to identify and 
  6.40  collect tax liabilities from 
  6.41  individuals and businesses that 
  6.42  currently do not pay all taxes owed.  
  6.43  This initiative is expected to result 
  6.44  in new general fund revenues of 
  6.45  $42,800,000 for the biennium ending 
  6.46  June 30, 2007. 
  7.1   The department must report to the 
  7.2   chairs of the house of representatives 
  7.3   Ways and Means and senate Finance 
  7.4   Committees by March 1, 2006, and 
  7.5   January 15, 2007, on the following 
  7.6   performance indicators: 
  7.7   (1) the number of corporations 
  7.8   noncompliant with the corporate tax 
  7.9   system each year and the percentage and 
  7.10  dollar amounts of valid tax liabilities 
  7.11  collected; 
  7.12  (2) the number of businesses 
  7.13  noncompliant with the sales and use tax 
  7.14  system and the percentage and dollar 
  7.15  amount of the valid tax liabilities 
  7.16  collected; and 
  7.17  (3) the number of individual 
  7.18  noncompliant cases resolved and the 
  7.19  percentage and dollar amounts of valid 
  7.20  tax liabilities collected. 
  7.21  The reports must also identify 
  7.22  base-level expenditures and staff 
  7.23  positions related to compliance and 
  7.24  audit activities, including baseline 
  7.25  information as of January 1, 2004.  The 
  7.26  information must be provided at the 
  7.27  budget activity level. 
  7.28  Subd. 3.  Accounts Receivable Management
  7.29      16,414,000     17,044,000
  7.30  $690,000 the first year and $1,320,000 
  7.31  the second year are for additional 
  7.32  activities to identify and collect tax 
  7.33  liabilities from individuals and 
  7.34  businesses that currently do not pay 
  7.35  all taxes owed.  This initiative is 
  7.36  expected to result in new general 
  7.37  revenues of $25,200,000 for the 
  7.38  biennium ending June 30, 2007. 
  7.39  Subd. 4.  Reduction
  7.40  The commissioner of finance must reduce 
  7.41  the total appropriation in this section 
  7.42  by the amount the commissioner 
  7.43  determines was spent on replacement of 
  7.44  modular walls in the collection 
  7.45  division.  This reduction must be 
  7.46  allocated to the collection division. 
  7.47  Sec. 15.  MILITARY AFFAIRS  
  7.48  Subdivision 1.  Total 
  7.49  Appropriation                         17,589,000     17,589,000
  7.50  The amounts that may be spent from this 
  7.51  appropriation for each program are 
  7.52  specified in the following subdivisions.
  7.53  Subd. 2.  Maintenance of Training 
  7.54  Facilities 
  7.55        5,590,000      5,590,000 
  7.56  Subd. 3.  General Support
  8.1         1,792,000      1,792,000 
  8.2   $35,000 each year is to assist in the 
  8.3   operation and staffing of the National 
  8.4   Guard Youth Camp at Camp Ripley.  This 
  8.5   appropriation is contingent on a 
  8.6   dollar-for-dollar match from nonstate 
  8.7   sources. 
  8.8   This appropriation is for fiscal year 
  8.9   2006 and fiscal year 2007 only and 
  8.10  should not be added to the base. 
  8.11  Subd. 4.  Enlistment Incentives
  8.12       10,207,000     10,207,000 
  8.13  $3,850,000 each year is to provide the 
  8.14  additional amount needed for full 
  8.15  funding of the tuition reimbursement 
  8.16  program in Minnesota Statutes, section 
  8.17  192.501, subdivision 2. 
  8.18  $1,500,000 each year is for 
  8.19  reenlistment bonuses under Minnesota 
  8.20  Statutes, section 192.501, subdivision 
  8.21  1b. 
  8.22  If appropriations for either year of 
  8.23  the biennium are insufficient, the 
  8.24  appropriation from the other year is 
  8.25  available.  The appropriations for 
  8.26  enlistment incentives are available 
  8.27  until expended. 
  8.28  Sec. 16.  VETERANS AFFAIRS             4,382,000      4,282,000
  8.29  $250,000 the first year and $250,000 
  8.30  the second year are for outreach to 
  8.31  underserved veterans including, but not 
  8.32  limited to, veterans of color, female 
  8.33  veterans, veterans of limited financial 
  8.34  means, and the dependents and survivors 
  8.35  of those veterans.  This is a onetime 
  8.36  appropriation and must not be added to 
  8.37  the base.  The commissioner must report 
  8.38  to the legislature by January 15, 2007, 
  8.39  on the results of the initiative, 
  8.40  including additional federal benefits 
  8.41  obtained as a result of the initiative. 
  8.42  $100,000 the first year is for grants 
  8.43  to provide services to veterans for 
  8.44  vocational rehabilitation, 
  8.45  developmental disabilities, or chemical 
  8.46  dependency. 
  8.47  Sec. 17.  VETERANS OF FOREIGN 
  8.48  WARS                                      85,000         85,000
  8.49  For carrying out the provisions of Laws 
  8.50  1945, chapter 455. 
  8.51  Sec. 18.  MILITARY ORDER OF 
  8.52  THE PURPLE HEART                          25,000         25,000
  8.53  Sec. 19.  DISABLED AMERICAN VETERANS      53,000         53,000
  8.54  For carrying out the provisions of Laws 
  8.55  1941, chapter 425. 
  9.1   Sec. 20.  GAMBLING CONTROL             2,800,000      2,800,000
  9.2   This appropriation is from the special 
  9.3   revenue fund and is made from the 
  9.4   lawful gambling regulation account. 
  9.5   Sec. 21.  RACING COMMISSION              674,000        835,000
  9.6   (a) This appropriation is from the 
  9.7   special revenue fund and is made from 
  9.8   the racing and card playing regulation 
  9.9   account. 
  9.10  (b) $253,000 for the fiscal year ending 
  9.11  June 30, 2006, and $414,000 for the 
  9.12  fiscal year ending June 30, 2007, are 
  9.13  from the racing and card playing 
  9.14  regulation account in the special 
  9.15  revenue fund.  The Racing Commission 
  9.16  must file monthly expenditure reports 
  9.17  with the commissioner of finance for 
  9.18  money spent from the appropriation in 
  9.19  this paragraph. 
  9.20  (c) The racing commission may not hire 
  9.21  new employees or enter into new 
  9.22  contracts with money subject to 
  9.23  paragraph (b) before resolution of the 
  9.24  petition for judicial review filed by 
  9.25  the Columbus Concerned Citizens Group. 
  9.26  Sec. 22.  STATE LOTTERY
  9.27  Notwithstanding Minnesota Statutes, 
  9.28  section 349A.10, the operating budget 
  9.29  must not exceed $26,700,000 in fiscal 
  9.30  year 2006 and $27,350,000 in fiscal 
  9.31  year 2007 and thereafter. 
  9.32  On July 1, 2005, the director of the 
  9.33  State Lottery shall transfer unclaimed 
  9.34  prize funds in the amount of $2,187,000 
  9.35  accumulated prior to July 1, 2003, to 
  9.36  the state treasury.  The prize funds, 
  9.37  that had not otherwise been 
  9.38  transferred, will be credited 
  9.39  $1,312,000, or 60 percent, to the 
  9.40  general fund and $875,000, or 40 
  9.41  percent, to the environment and natural 
  9.42  resources trust fund. 
  9.43  Sec. 23.  TORT CLAIMS                    161,000        161,000
  9.44  To be spent by the commissioner of 
  9.45  finance.  
  9.46  If the appropriation for either year is 
  9.47  insufficient, the appropriation for the 
  9.48  other year is available for it.  
  9.49  Sec. 24.  MINNESOTA STATE   
  9.50  RETIREMENT SYSTEM                      1,176,000      1,205,000
  9.51  The amounts estimated to be needed for 
  9.52  each program are as follows: 
  9.53  (a) Legislators 
  9.54         783,000        802,000
  9.55  Under Minnesota Statutes, sections 
 10.1   3A.03, subdivision 2; 3A.04, 
 10.2   subdivisions 3 and 4; and 3A.115. 
 10.3   (b) Constitutional Officers 
 10.4          393,000        403,000
 10.5   Under Minnesota Statutes, sections 
 10.6   352C.031, subdivision 5; 352C.04, 
 10.7   subdivision 3; and 352C.09, subdivision 
 10.8   2. 
 10.9   If an appropriation in this section for 
 10.10  either year is insufficient, the 
 10.11  appropriation for the other year is 
 10.12  available for it. 
 10.13  Sec. 25.  MINNEAPOLIS EMPLOYEES
 10.14  RETIREMENT FUND                        8,065,000      8,065,000 
 10.15  The amounts estimated to be needed 
 10.16  under Minnesota Statutes, section 
 10.17  422A.101, subdivision 3. 
 10.18  Sec. 26.  MINNEAPOLIS TEACHERS
 10.19  RETIREMENT FUND                       15,800,000     15,800,000 
 10.20  The amounts estimated to be needed are 
 10.21  as follows: 
 10.22  (a) Special direct state aid to first
 10.23  class city teachers retirement funds
 10.24      13,300,000     13,300,000 
 10.25  Authorized under Minnesota Statutes, 
 10.26  section 354A.12, subdivisions 3a and 3c.
 10.27  (b) Special direct state matching aid
 10.28  to Minneapolis Teachers Retirement Fund
 10.29       2,500,000      2,500,000 
 10.30  Authorized under Minnesota Statutes, 
 10.31  section 354A.12, subdivision 3b. 
 10.32  Sec. 27.  ST. PAUL TEACHERS
 10.33  RETIREMENT FUND                        2,967,000      2,967,000 
 10.34  The amounts estimated to be needed for 
 10.35  special direct state aid to first class 
 10.36  city teachers retirement funds 
 10.37  authorized under Minnesota Statutes, 
 10.38  section 354A.12, subdivisions 3a and 3c.
 10.39  Sec. 28.  COUNCIL ON BLACK  
 10.40  MINNESOTANS                              275,000        275,000 
 10.41  Sec. 29.  COUNCIL ON        
 10.42  CHICANO/LATINO AFFAIRS                   268,000        268,000 
 10.43  Sec. 30.  COUNCIL ON        
 10.44  ASIAN-PACIFIC MINNESOTANS                237,000        237,000 
 10.45  Sec. 31.  SHARED SERVICES ENCOURAGED 
 10.46  During the biennium ending June 30, 
 10.47  2007, the Council on Black Minnesotans, 
 10.48  the Council on Asian-Pacific 
 10.49  Minnesotans, and the Council on Affairs 
 10.50  of Chicano/Latino people are encouraged 
 11.1   to increase sharing of administrative 
 11.2   staff and office space. 
 11.3   Sec. 32.  INDIAN AFFAIRS    
 11.4   COUNCIL                                  470,000        470,000 
 11.5   Sec. 33.  GENERAL CONTINGENT 
 11.6   ACCOUNTS                                 600,000        500,000
 11.7                 Summary by Fund
 11.8   General                 100,000   ...,...,...
 11.9   State Government
 11.10  Special Revenue         400,000       400,000
 11.11  Workers'
 11.12  Compensation            100,000       100,000
 11.13  The appropriations in this section may 
 11.14  only be spent with the approval of the 
 11.15  governor after consultation with the 
 11.16  Legislative Advisory Commission 
 11.17  pursuant to Minnesota Statutes, section 
 11.18  3.30. 
 11.19  If an appropriation in this section for 
 11.20  either year is insufficient, the 
 11.21  appropriation for the other year is 
 11.22  available for it.  
 11.23  If a contingent account appropriation 
 11.24  is made in one fiscal year, it should 
 11.25  be considered a biennial appropriation. 
 11.26  Sec. 34.  GRANTS
 11.27  Grants made from appropriations in this 
 11.28  act must be divided so that payments 
 11.29  are made at least four times each year. 
 11.30  Sec. 35.  RACING COMMISSION APPROPRIATION 
 11.31  $156,000 is appropriated to the 
 11.32  Minnesota Racing Commission from the 
 11.33  racing and card playing regulation 
 11.34  account in the special revenue fund for 
 11.35  the fiscal year ending June 30, 2005.  
 11.36  $113,000 of this appropriation is from 
 11.37  the interim license fee authorized by 
 11.38  Laws 2003, First Special Session 
 11.39  chapter 1, article 2, section 69, and 
 11.40  is intended to defray the regulatory 
 11.41  oversight and legal costs associated 
 11.42  with the class A license approved by 
 11.43  the commission on January 19, 2005.  
 11.44  This appropriation does not cancel, but 
 11.45  carries forward into the following 
 11.46  fiscal year.  The racing commission may 
 11.47  not hire new employees or enter into 
 11.48  new contracts with money in this 
 11.49  section before resolution of the 
 11.50  petition for judicial review filed by 
 11.51  the Columbus Concerned Citizens Group.  
 11.52  This section is effective the day 
 11.53  following final enactment. 
 11.54                             ARTICLE 2
 11.55                    STATE GOVERNMENT OPERATIONS
 12.1      Section 1.  Minnesota Statutes 2004, section 3.011, is 
 12.2   amended to read: 
 12.3      3.011 [SESSIONS.] 
 12.4      The legislature shall meet at the seat of government on the 
 12.5   first Tuesday after the first Monday in January of each 
 12.6   odd-numbered year.  When the first Monday in January falls on 
 12.7   January 1, it shall meet on the first Wednesday after the first 
 12.8   Monday.  The legislature may not meet in regular session in an 
 12.9   even-numbered year before April 1.  It shall also meet when 
 12.10  called by the governor to meet in special session.  
 12.11     Sec. 2.  Minnesota Statutes 2004, section 3.012, is amended 
 12.12  to read: 
 12.13     3.012 [LEGISLATIVE DAY.] 
 12.14     A legislative day is a day when either house of the 
 12.15  legislature is called to order or when a standing committee of 
 12.16  either house of the legislature meets.  A legislative day begins 
 12.17  at seven o'clock a.m. and continues until seven o'clock a.m. of 
 12.18  the following calendar day. 
 12.19     Sec. 3.  [3.194] [REVENUE FROM PUBLICATIONS; MEDIA 
 12.20  PRODUCTIONS.] 
 12.21     (a) The house of representatives and the senate must: 
 12.22     (1) solicit paid advertising in weekly news magazines 
 12.23  published by legislative staff; and 
 12.24     (2) accept donations and solicit sponsorships for media 
 12.25  productions that provide the public access to legislative 
 12.26  proceedings. 
 12.27     (b) The house of representatives and the senate may accept 
 12.28  donations for weekly news magazines published by legislative 
 12.29  staff. 
 12.30     (c) The house of representatives and the senate may solicit 
 12.31  advertising in legislative directories published by legislative 
 12.32  staff. 
 12.33     (d) Revenue received by the house of representatives and 
 12.34  senate under this section is appropriated to the house of 
 12.35  representatives or the senate, as applicable.  
 12.36     Sec. 4.  [3.1941] [PUBLIC INFORMATION.] 
 13.1      The house of representatives and the senate must publish a 
 13.2   combined schedule of house and senate committee meetings and 
 13.3   floor sessions.  The combined schedule must be based on the 
 13.4   electronic database-driven schedule system developed by the 
 13.5   house of representatives. 
 13.6      Any nonpartisan, weekly news magazine providing information 
 13.7   to the public about the legislature, the legislative process, or 
 13.8   legislative proceedings must be a joint printed publication of 
 13.9   the house of representatives and the senate.  Editorial control 
 13.10  under this section is the responsibility of the house of 
 13.11  representatives. 
 13.12     Sec. 5.  [3.306] [MEETING TIMES.] 
 13.13     The house of representatives and the senate must adopt 
 13.14  rules that set one time as the regular hour of convening daily 
 13.15  sessions in both houses. 
 13.16     Sec. 6.  [3.3061] [JOINT STANDING COMMITTEES.] 
 13.17     The house of representatives and the senate are encouraged 
 13.18  to adopt rules that:  (1) establish a system of joint standing 
 13.19  committees to consider and report on legislation and conduct 
 13.20  other legislative business, except that each house may establish 
 13.21  separately a committee on rules and administration and a 
 13.22  committee on ethics; or (2) provide that house and senate 
 13.23  committees with similar jurisdiction will meet at the same time, 
 13.24  to facilitate joint meetings. 
 13.25     Sec. 7.  [3.3062] [WIRELESS INTERNET.] 
 13.26     If nonstate funds are available, the Legislative 
 13.27  Coordinating Commission must establish wireless Internet service 
 13.28  in the Capitol building and the State Office Building, and must 
 13.29  make this service available to the public.  The commission may 
 13.30  establish any necessary security features related to use of this 
 13.31  service. 
 13.32     Sec. 8.  Minnesota Statutes 2004, section 3.9223, 
 13.33  subdivision 5, is amended to read: 
 13.34     Subd. 5.  [POWERS.] The council may contract in its own 
 13.35  name.  Contracts must be approved by a majority of the members 
 13.36  of the council and executed by the chair and the executive 
 14.1   director.  The council may apply for, receive, and expend in its 
 14.2   own name grants and gifts of money consistent with the power and 
 14.3   duties specified in this section.  
 14.4      The council governor shall appoint an executive director 
 14.5   who is experienced in administrative activities and familiar 
 14.6   with the problems and needs of Chicano/Latino people.  The 
 14.7   council may delegate to the executive director powers and duties 
 14.8   under this section that do not require council approval.  The 
 14.9   executive director and council staff serve in the unclassified 
 14.10  service.  The executive director may be removed at any time by a 
 14.11  majority vote of the entire council the governor.  The executive 
 14.12  director shall recommend to the council the appropriate staffing 
 14.13  necessary to carry out its duties.  The commissioner of 
 14.14  administration shall provide the council with necessary 
 14.15  administrative services.  
 14.16     Sec. 9.  Minnesota Statutes 2004, section 3.9225, 
 14.17  subdivision 5, is amended to read: 
 14.18     Subd. 5.  [POWERS.] The council may contract in its own 
 14.19  name, but no money shall be accepted or received as a loan nor 
 14.20  indebtedness incurred except as otherwise provided by law.  
 14.21  Contracts shall be approved by a majority of the members of the 
 14.22  council and executed by the chair and the executive director.  
 14.23  The council may apply for, receive, and expend in its own name 
 14.24  grants and gifts of money consistent with the power and duties 
 14.25  specified in subdivisions 1 to 7. 
 14.26     The council governor shall appoint an executive director 
 14.27  who is experienced in administrative activities and familiar 
 14.28  with the problems and needs of Black people.  The council may 
 14.29  delegate to the executive director powers and duties under 
 14.30  subdivisions 1 to 7 which do not require council approval.  The 
 14.31  executive director serves in the unclassified service and may be 
 14.32  removed at any time by the council governor.  The executive 
 14.33  director shall recommend to the council, and the council may 
 14.34  appoint the appropriate staff necessary to carry out its 
 14.35  duties.  Staff members serve in the unclassified service.  The 
 14.36  commissioner of administration shall provide the council with 
 15.1   necessary administrative services.  
 15.2      Sec. 10.  Minnesota Statutes 2004, section 3.9226, 
 15.3   subdivision 5, is amended to read: 
 15.4      Subd. 5.  [POWERS.] (a) The council may contract in its own 
 15.5   name but may not accept or receive a loan or incur indebtedness 
 15.6   except as otherwise provided by law.  Contracts must be approved 
 15.7   by a majority of the members of the council and executed by the 
 15.8   chair and the executive director.  The council may apply for, 
 15.9   receive, and expend in its own name grants and gifts of money 
 15.10  consistent with the powers and duties specified in this section. 
 15.11     (b) The council governor shall appoint an executive 
 15.12  director who is experienced in administrative activities and 
 15.13  familiar with the problems and needs of Asian-Pacific people.  
 15.14  The council may delegate to the executive director powers and 
 15.15  duties under this section that do not require council approval.  
 15.16  The executive director serves in the unclassified service and 
 15.17  may be removed at any time by the council governor.  The 
 15.18  executive director shall appoint the appropriate staff necessary 
 15.19  to carry out the duties of the council.  All staff members serve 
 15.20  in the unclassified service.  The commissioner of administration 
 15.21  shall provide the council with necessary administrative services.
 15.22     Sec. 11.  [4.48] [FAITH-BASED INITIATIVES.] 
 15.23     The governor must designate an employee in the governor's 
 15.24  office to coordinate faith-based initiatives. 
 15.25     Sec. 12.  [5.31] [STATEWIDE VOTER REGISTRATION SYSTEM.] 
 15.26     The secretary of state may sell intellectual property 
 15.27  rights associated with the statewide voter registration system 
 15.28  to other states or to units of local government in other states. 
 15.29     Sec. 13.  [6.80] [RULE AND LAW WAIVER REQUESTS.] 
 15.30     Subdivision 1.  [GENERALLY.] (a) Except as provided in 
 15.31  paragraph (b), a local government unit may request the state 
 15.32  auditor to grant a waiver from one or more administrative rules 
 15.33  or a temporary, limited exemption from enforcement of state 
 15.34  procedural laws governing delivery of services by the local 
 15.35  government unit.  Two or more local government units may submit 
 15.36  a joint application for a waiver or exemption under this section 
 16.1   if they propose to cooperate in providing a service or program 
 16.2   that is subject to the rule or law.  Before submitting an 
 16.3   application to the state auditor, the governing body of the 
 16.4   local government unit must approve, in concept, the proposed 
 16.5   waiver or exemption at a meeting required to be public under 
 16.6   chapter 13D.  A local government unit or two or more units 
 16.7   acting jointly may apply for a waiver or exemption on behalf of 
 16.8   a nonprofit organization providing services to clients whose 
 16.9   costs are paid by the unit or units.  A waiver or exemption 
 16.10  granted to a nonprofit organization under this section applies 
 16.11  to services provided to all the organization's clients. 
 16.12     (b) A school district that is granted a variance from rules 
 16.13  of the commissioner of education under section 122A.163, need 
 16.14  not apply for a waiver of those rules under this section.  A 
 16.15  school district may not seek a waiver of rules under this 
 16.16  section if the commissioner of education has authority to grant 
 16.17  a variance to the rules under section 122A.163.  This paragraph 
 16.18  does not preclude a school district from being included in a 
 16.19  cooperative effort with another local government unit under this 
 16.20  section.  
 16.21     (c) Before petitioning the State Auditor's Office for an 
 16.22  exemption from an administrative rule, the petitioner must have 
 16.23  requested and been denied such an exemption from the appropriate 
 16.24  agency pursuant to sections 14.055 and 14.056. 
 16.25     Subd. 2.  [APPLICATION.] A local government unit requesting 
 16.26  a waiver of a rule or exemption from enforcement of a law under 
 16.27  this section shall present a written application to the state 
 16.28  auditor.  The application must include: 
 16.29     (1) the name and address of the entity for whom a waiver of 
 16.30  a rule or exemption from enforcement of a law is being 
 16.31  requested; 
 16.32     (2) identification of the service or program at issue; 
 16.33     (3) identification of the administrative rule or the law 
 16.34  imposing a procedural requirement with respect to which the 
 16.35  waiver or exemption is sought; 
 16.36     (4) a description of the improved service outcome sought, 
 17.1   including an explanation of the effect of the waiver or 
 17.2   exemption in accomplishing that outcome, and why that outcome 
 17.3   cannot be accomplished under established rules or laws; 
 17.4      (5) information on the State Auditor's Office treatment on 
 17.5   similar cases; 
 17.6      (6) the name, address, and telephone number of any person, 
 17.7   business, or other government unit the petitioner knows would be 
 17.8   adversely affected by the grant of the petition; and 
 17.9      (7) a signed statement as to the accuracy of the facts 
 17.10  presented. 
 17.11  A copy of the application must be provided by the requesting 
 17.12  local government unit to the exclusive representative certified 
 17.13  under section 179A.12 to represent employees who provide the 
 17.14  service or program affected by the requested waiver or exemption.
 17.15     Subd. 3.  [REVIEW PROCESS.] (a) Upon receipt of an 
 17.16  application from a local government unit, the state auditor 
 17.17  shall review the application.  The state auditor shall dismiss 
 17.18  an application if the application proposes a waiver of rules or 
 17.19  exemption from enforcement of laws that would result in due 
 17.20  process violations, violations of federal law or the state or 
 17.21  federal constitution, or the loss of services to people who are 
 17.22  entitled to them.  
 17.23     (b) The state auditor shall determine whether a law from 
 17.24  which an exemption for enforcement is sought is a procedural 
 17.25  law, specifying how a local government unit is to achieve an 
 17.26  outcome, rather than a substantive law prescribing the outcome 
 17.27  or otherwise establishing policy.  In making its determination, 
 17.28  the state auditor shall consider whether the law specifies such 
 17.29  requirements as:  
 17.30     (1) who must deliver a service; 
 17.31     (2) where the service must be delivered; 
 17.32     (3) to whom and in what form reports regarding the service 
 17.33  must be made; and 
 17.34     (4) how long or how often the service must be made 
 17.35  available to a given recipient. 
 17.36     (c) If the application is submitted by a local government 
 18.1   unit in the metropolitan area or the unit requests a waiver of a 
 18.2   rule or temporary, limited exemptions from enforcement of a 
 18.3   procedural law over which the Metropolitan Council or a 
 18.4   metropolitan agency has jurisdiction, the state auditor shall 
 18.5   also transmit a copy of the application to the council for 
 18.6   review and comment.  The council shall report its comments to 
 18.7   the board within 60 days of the date the application was 
 18.8   transmitted to the council.  The council may point out any 
 18.9   resources or technical assistance it may be able to provide a 
 18.10  local government unit submitting a request under this section. 
 18.11     (d) Within 15 days after receipt of the application, the 
 18.12  state auditor shall transmit a copy of it to the commissioner of 
 18.13  each agency having jurisdiction over a rule or law from which a 
 18.14  waiver or exemption is sought.  The agency may mail a notice 
 18.15  that it has received an application for a waiver or exemption to 
 18.16  all persons who have registered with the agency under section 
 18.17  14.14, subdivision 1a, identifying the rule or law from which a 
 18.18  waiver or exemption is requested.  If no agency has jurisdiction 
 18.19  over the rule or law, the state auditor shall transmit a copy of 
 18.20  the application to the attorney general.  The agency shall 
 18.21  inform the state auditor of its agreement with or objection to 
 18.22  and grounds for objection to the waiver or exemption request 
 18.23  within 60 days of the date when the application was transmitted 
 18.24  to it.  An agency's failure to do so is considered agreement to 
 18.25  the waiver or exemption.  The state auditor shall decide whether 
 18.26  to grant a waiver or exemption at the end of the 60-day response 
 18.27  period.  Interested persons may submit written comments to the 
 18.28  state auditor on the waiver or exemption request up to the end 
 18.29  of the 60-day response period. 
 18.30     (e) If the exclusive representative of the affected 
 18.31  employees of the requesting local government unit objects to the 
 18.32  waiver or exemption request, it may inform the state auditor of 
 18.33  the objection to and the grounds for the objection to the waiver 
 18.34  or exemption request within 60 days of the receipt of the 
 18.35  application. 
 18.36     Subd. 4.  [HEARING.] If a state agency under subdivision 3, 
 19.1   paragraph (d), or the exclusive representative of the affected 
 19.2   employees under subdivision 3, paragraph (e), has objected to a 
 19.3   waiver or exemption request, the State Auditor's Office shall 
 19.4   set a date for a hearing on the applications.  The hearing must 
 19.5   be conducted informally at a time and place determined by all 
 19.6   parties.  Persons representing the local government unit shall 
 19.7   present their case for the waiver or exemption, and persons 
 19.8   representing the agency or the exclusive representative of the 
 19.9   affected employees shall explain their objection to it.  The 
 19.10  state auditor may request additional information from the local 
 19.11  government unit or either objecting party.  The state auditor 
 19.12  may also request, either before or at the hearing, information 
 19.13  or comments from representatives of business, labor, local 
 19.14  governments, state agencies, consultants, and members of the 
 19.15  public.  If necessary, the hearing may be continued for a later 
 19.16  date.  The state auditor may modify the terms of the waiver or 
 19.17  exemption request in arriving at the agreement required under 
 19.18  subdivision 5. 
 19.19     Subd. 5.  [CONDITIONS OF AGREEMENTS.] (a) In determining 
 19.20  whether to grant a petition for a waiver of a rule or exemption 
 19.21  from enforcement of a law, the state auditor should consider the 
 19.22  following factors:  
 19.23     (1) whether there is a true and unique impediment under 
 19.24  current law to accomplishing the goal of the local government 
 19.25  unit; 
 19.26     (2) granting the waiver of a rule or exemption from 
 19.27  enforcement of law will only change procedural requirements of a 
 19.28  local government unit; 
 19.29     (3) the purpose of any rule or law that is waived is still 
 19.30  being met in another manner; 
 19.31     (4) granting the proposed waiver of a rule or exemption 
 19.32  from enforcement of a law would result in a more efficient means 
 19.33  of providing government services; and 
 19.34     (5) granting the proposed waiver will not have a 
 19.35  significant negative impact on other state government, local 
 19.36  government units, businesses, or citizens. 
 20.1      (b) If the state auditor grants a request for a waiver or 
 20.2   exemption, the state auditor and the local government unit shall 
 20.3   enter into an agreement providing for the delivery of the 
 20.4   service or program that is the subject of the application.  The 
 20.5   agreement must specify desired outcomes, the reasons why the 
 20.6   desired outcomes cannot be met under current laws or rules, and 
 20.7   the means of measurement by which the state auditor will 
 20.8   determine whether the outcomes specified in the agreement have 
 20.9   been met.  The agreement must specify the duration of the waiver 
 20.10  or exemption.  The duration of a waiver from an administrative 
 20.11  rule may be for no less than two years and no more than four 
 20.12  years, subject to renewal if both parties agree.  An exemption 
 20.13  from enforcement of a law terminates ten days after adjournment 
 20.14  of the regular legislative session held during the calendar year 
 20.15  following the year when the exemption is granted, unless the 
 20.16  legislature has acted to extend or make permanent the exemption. 
 20.17     (c) The state auditor must report any grants of waivers or 
 20.18  exemptions to the legislature, including the chairs of the 
 20.19  governmental operations and appropriate policy committees in the 
 20.20  house of representatives and senate and the governor within 30 
 20.21  days. 
 20.22     (d) The state auditor may reconsider or renegotiate the 
 20.23  agreement if the rule or law affected by the waiver or exemption 
 20.24  is amended or repealed during the term of the original 
 20.25  agreement.  A waiver of a rule under this section has the effect 
 20.26  of a variance granted by an agency under section 14.055.  A 
 20.27  local unit of government that is granted an exemption from 
 20.28  enforcement of a procedural requirement in state law under this 
 20.29  section is exempt from that law for the duration of the 
 20.30  exemption.  The state auditor may require periodic reports from 
 20.31  the local government unit or conduct investigations of the 
 20.32  service or program. 
 20.33     Subd. 6.  [ENFORCEMENT.] If the state auditor finds that 
 20.34  the local government unit is failing to comply with the terms of 
 20.35  the agreement under subdivision 5, the state auditor may rescind 
 20.36  the agreement.  Upon the rescission, the local unit of 
 21.1   government becomes subject to the rules and laws covered by the 
 21.2   agreement. 
 21.3      Subd. 7.  [ACCESS TO DATA.] If a local government unit, 
 21.4   through a cooperative program under this section, gains access 
 21.5   to data collected, created, received, or maintained by another 
 21.6   local government that is classified as not public, the unit 
 21.7   gaining access is governed by the same restrictions on access to 
 21.8   and use of the data as the unit that collected, created, 
 21.9   received, or maintained the data. 
 21.10     Sec. 14.  [8.065] [PRIVATE ATTORNEY CONTRACTS.] 
 21.11     The attorney general may not enter into a contract for 
 21.12  legal services in which the fees and expenses paid by the state 
 21.13  exceed, or can reasonably be expected to exceed, $1,000,000 
 21.14  unless the attorney general first submits the proposed contract 
 21.15  to the Legislative Advisory Commission, and waits at least 20 
 21.16  days to receive a possible recommendation from the commission. 
 21.17     Sec. 15.  Minnesota Statutes 2004, section 11A.04, is 
 21.18  amended to read: 
 21.19     11A.04 [DUTIES AND POWERS.] 
 21.20     The state board shall: 
 21.21     (1) Act as trustees for each fund for which it invests or 
 21.22  manages money in accordance with the standard of care set forth 
 21.23  in section 11A.09 if state assets are involved and in accordance 
 21.24  with chapter 356A if pension assets are involved. 
 21.25     (2) Formulate policies and procedures deemed necessary and 
 21.26  appropriate to carry out its functions.  Procedures adopted by 
 21.27  the board must allow fund beneficiaries and members of the 
 21.28  public to become informed of proposed board actions.  Procedures 
 21.29  and policies of the board are not subject to the Administrative 
 21.30  Procedure Act. 
 21.31     (3) Employ an executive director as provided in section 
 21.32  11A.07. 
 21.33     (4) Employ investment advisors and consultants as it deems 
 21.34  necessary. 
 21.35     (5) Prescribe policies concerning personal investments of 
 21.36  all employees of the board to prevent conflicts of interest. 
 22.1      (6) Maintain a record of its proceedings. 
 22.2      (7) As it deems necessary, establish advisory committees 
 22.3   subject to section 15.059 to assist the board in carrying out 
 22.4   its duties. 
 22.5      (8) Not permit state funds to be used for the underwriting 
 22.6   or direct purchase of municipal securities from the issuer or 
 22.7   the issuer's agent. 
 22.8      (9) Direct the commissioner of finance to sell property 
 22.9   other than money that has escheated to the state when the board 
 22.10  determines that sale of the property is in the best interest of 
 22.11  the state.  Escheated property must be sold to the highest 
 22.12  bidder in the manner and upon terms and conditions prescribed by 
 22.13  the board. 
 22.14     (10) Undertake any other activities necessary to implement 
 22.15  the duties and powers set forth in this section. 
 22.16     (11) Establish a formula or formulas to measure management 
 22.17  performance and return on investment.  Public pension funds in 
 22.18  the state shall utilize the formula or formulas developed by the 
 22.19  state board. 
 22.20     (12) Except as otherwise provided in article XI, section 8, 
 22.21  of the Constitution of the state of Minnesota, employ, at its 
 22.22  discretion, qualified private firms to invest and manage the 
 22.23  assets of funds over which the state board has investment 
 22.24  management responsibility.  There is annually appropriated to 
 22.25  the state board, from the assets of the funds for which the 
 22.26  state board utilizes a private investment manager, sums 
 22.27  sufficient to pay the costs of employing private firms.  Each 
 22.28  year, by January 15, the board shall report to the governor and 
 22.29  legislature on the cost and the investment performance of each 
 22.30  investment manager employed by the board.  
 22.31     (13) Adopt an investment policy statement that includes 
 22.32  investment objectives, asset allocation, and the investment 
 22.33  management structure for the retirement fund assets under its 
 22.34  control.  The statement may be revised at the discretion of the 
 22.35  state board.  The state board shall seek the advice of the 
 22.36  council regarding its investment policy statement.  Adoption of 
 23.1   the statement is not subject to chapter 14. 
 23.2      There is annually appropriated to the state board, from the 
 23.3   assets of the funds for which the state board provides 
 23.4   investment services, sums sufficient to pay the costs of all 
 23.5   necessary expenses for the administration of the board.  These 
 23.6   sums will be deposited in the State Board of Investment 
 23.7   operating account, which must be established by the commissioner 
 23.8   of finance. 
 23.9      Sec. 16.  Minnesota Statutes 2004, section 11A.07, 
 23.10  subdivision 4, is amended to read: 
 23.11     Subd. 4.  [DUTIES AND POWERS.] The director, at the 
 23.12  direction of the state board, shall: 
 23.13     (1) plan, direct, coordinate, and execute administrative 
 23.14  and investment functions in conformity with the policies and 
 23.15  directives of the state board and the requirements of this 
 23.16  chapter and of chapter 356A; 
 23.17     (2) prepare and submit biennial and annual budgets to the 
 23.18  board and with the approval of the board submit the budgets to 
 23.19  the Department of Finance; 
 23.20     (3) employ professional and clerical staff as is necessary 
 23.21  within the complement limits established by the legislature.  
 23.22  Employees whose primary responsibility is to invest or manage 
 23.23  money or employees who hold positions designated as unclassified 
 23.24  under section 43A.08, subdivision 1a, are in the unclassified 
 23.25  service of the state.  Other employees are in the classified 
 23.26  service; 
 23.27     (3) (4) report to the state board on all operations under 
 23.28  the director's control and supervision; 
 23.29     (4) (5) maintain accurate and complete records of 
 23.30  securities transactions and official activities; 
 23.31     (5) (6) establish a policy relating to the purchase and 
 23.32  sale of securities on the basis of competitive offerings or 
 23.33  bids.  The policy is subject to board approval; 
 23.34     (6) (7) cause securities acquired to be kept in the custody 
 23.35  of the commissioner of finance or other depositories consistent 
 23.36  with chapter 356A, as the state board deems appropriate; 
 24.1      (7) (8) prepare and file with the director of the 
 24.2   Legislative Reference Library, by December 31 of each year, a 
 24.3   report summarizing the activities of the state board, the 
 24.4   council, and the director during the preceding fiscal year.  The 
 24.5   report must be prepared so as to provide the legislature and the 
 24.6   people of the state with a clear, comprehensive summary of the 
 24.7   portfolio composition, the transactions, the total annual rate 
 24.8   of return, and the yield to the state treasury and to each of 
 24.9   the funds whose assets are invested by the state board, and the 
 24.10  recipients of business placed or commissions allocated among the 
 24.11  various commercial banks, investment bankers, and brokerage 
 24.12  organizations.  The report must contain financial statements for 
 24.13  funds managed by the board prepared in accordance with generally 
 24.14  accepted accounting principles; 
 24.15     (8) (9) require state officials from any department or 
 24.16  agency to produce and provide access to any financial documents 
 24.17  the state board deems necessary in the conduct of its investment 
 24.18  activities; 
 24.19     (9) (10) receive and expend legislative appropriations; and 
 24.20     (10) (11) undertake any other activities necessary to 
 24.21  implement the duties and powers set forth in this subdivision 
 24.22  consistent with chapter 356A. 
 24.23     Sec. 17.  Minnesota Statutes 2004, section 11A.07, 
 24.24  subdivision 5, is amended to read: 
 24.25     Subd. 5.  [APPORTIONMENT OF EXPENSES.] The executive 
 24.26  director shall apportion the actual expenses incurred by the 
 24.27  board on an accrual basis among the several funds whose assets 
 24.28  are invested by the board based on the weighted average assets 
 24.29  under management during each quarter.  The charge to each fund 
 24.30  must be calculated, billed, and paid on a quarterly basis in 
 24.31  accordance with procedures for interdepartmental payments 
 24.32  established by the commissioner of finance.  The amounts 
 24.33  necessary to pay these charges are appropriated from the 
 24.34  investment earnings of each fund.  Receipts must be credited to 
 24.35  the general fund as nondedicated receipts.  The annual expenses 
 24.36  incurred by the state board will be apportioned among the state 
 25.1   general fund, the retirement funds administered by the Minnesota 
 25.2   State Retirement System, Public Employees Retirement 
 25.3   Association, and Teachers Retirement Association, and all other 
 25.4   funds as follows: 
 25.5      (1) on a biennial basis, the state board, in accordance 
 25.6   with biennial budget procedures established by the commissioner 
 25.7   of finance, may request a direct appropriation that represents 
 25.8   the portion of the state board's expenses necessary to provide 
 25.9   investment services to the state general fund.  This 
 25.10  appropriation must be deposited in the State Board of Investment 
 25.11  operating account; 
 25.12     (2) the executive director shall apportion the actual 
 25.13  expenses incurred by the state board, less the charge to the 
 25.14  state general fund, among the funds whose assets are invested by 
 25.15  the state board, with the exception of the state general fund, 
 25.16  based on the weighted average assets under management during the 
 25.17  fiscal year.  The amounts necessary to pay these charges are 
 25.18  apportioned from the investment earnings of each fund.  Receipts 
 25.19  must be credited to the State Board of Investment operating 
 25.20  account; 
 25.21     (3) the actual expenses apportioned and charged to the 
 25.22  funds, with the exception of the state general fund and the 
 25.23  retirement funds administered by the Minnesota State Retirement 
 25.24  System, Public Employees Retirement Association, and Teachers 
 25.25  Retirement Association, must be calculated, billed, and paid on 
 25.26  a quarterly basis in accordance with procedures for 
 25.27  interdepartmental payments established by the commissioner of 
 25.28  finance; and 
 25.29     (4) the annual estimated expenses to be incurred by the 
 25.30  state board that will be payable by the retirement funds 
 25.31  administered by the Minnesota State Retirement System, Public 
 25.32  Employees Retirement Association, and Teachers Retirement 
 25.33  Association must be deposited in the State Board of Investment 
 25.34  operating account on the first business day of each fiscal 
 25.35  year.  A reconciliation of the actual expenses compared to the 
 25.36  estimated costs must occur at the end of each fiscal year with 
 26.1   any surplus or deficit being credited or debited to each of the 
 26.2   respective funds.  The state board must present a statement of 
 26.3   accrued actual expenses to each fund at the end of each quarter 
 26.4   during each fiscal year. 
 26.5      Sec. 18.  Minnesota Statutes 2004, section 11A.24, 
 26.6   subdivision 6, is amended to read: 
 26.7      Subd. 6.  [OTHER INVESTMENTS.] (a) In addition to the 
 26.8   investments authorized in subdivisions 1 to 5, and subject to 
 26.9   the provisions in paragraph (b), the state board may invest 
 26.10  funds in:  
 26.11     (1) venture capital investment businesses through 
 26.12  participation in limited partnerships, trusts, private 
 26.13  placements, limited liability corporations, limited liability 
 26.14  companies, limited liability partnerships, and corporations; 
 26.15     (2) real estate ownership interests or loans secured by 
 26.16  mortgages or deeds of trust or shares of real estate investment 
 26.17  trusts through investment in limited partnerships, bank 
 26.18  sponsored collective funds, trusts, mortgage participation 
 26.19  agreements, and insurance company commingled accounts, including 
 26.20  separate accounts; 
 26.21     (3) regional and mutual funds through bank sponsored 
 26.22  collective funds and open-end investment companies registered 
 26.23  under the Federal Investment Company Act of 1940, and closed-end 
 26.24  mutual funds listed on an exchange regulated by a governmental 
 26.25  agency; 
 26.26     (4) resource investments through limited partnerships, 
 26.27  trusts, private placements, limited liability corporations, 
 26.28  limited liability companies, limited liability partnerships, and 
 26.29  corporations; and 
 26.30     (5) international securities. 
 26.31     (b) The investments authorized in paragraph (a) must 
 26.32  conform to the following provisions:  
 26.33     (1) the aggregate value of all investments made according 
 26.34  to paragraph (a), clauses (1) to (4), may not exceed 35 percent 
 26.35  of the market value of the fund for which the state board is 
 26.36  investing; 
 27.1      (2) there must be at least four unrelated owners of the 
 27.2   investment other than the state board for investments made under 
 27.3   paragraph (a), clause (1), (2), (3), or (4); 
 27.4      (3) state board participation in an investment vehicle is 
 27.5   limited to 20 percent thereof for investments made under 
 27.6   paragraph (a), clause (1), (2), (3), or (4); and 
 27.7      (4) state board participation in a limited partnership does 
 27.8   not include a general partnership interest or other interest 
 27.9   involving general liability.  The state board may not engage in 
 27.10  any activity as a limited partner which creates general 
 27.11  liability.  
 27.12     (c) All financial, business, or proprietary data collected, 
 27.13  created, received, or maintained by the state board in 
 27.14  connection with investments authorized by paragraph (a), clause 
 27.15  (1), (2), or (4), are nonpublic data under section 13.02, 
 27.16  subdivision 9.  As used in this paragraph, "financial, business, 
 27.17  or proprietary data" means data; as determined by the 
 27.18  responsible authority for the state board, that is of a 
 27.19  financial, business, or proprietary nature; and the release of 
 27.20  which could cause competitive harm to the state board, the legal 
 27.21  entity in which the state board has invested or has considered 
 27.22  an investment, the managing entity of an investment, or a 
 27.23  portfolio company in which the legal entity holds an interest.  
 27.24  As used in this section, "business data" is data described in 
 27.25  section 13.591, subdivision 1. Regardless of whether they could 
 27.26  be considered financial, business, or proprietary data, the 
 27.27  following data received, prepared, used, or retained by the 
 27.28  state board in connection with investments authorized by 
 27.29  paragraph (a), clause (1), (2), or (4), are public at all times: 
 27.30     (1) the name and industry group classification of the legal 
 27.31  entity in which the state board has invested or in which the 
 27.32  state board has considered an investment; 
 27.33     (2) the state board commitment amount, if any; 
 27.34     (3) the funded amount of the state board's commitment to 
 27.35  date, if any; 
 27.36     (4) the market value of the investment by the state board; 
 28.1      (5) the state board's internal rate of return for the 
 28.2   investment, including expenditures and receipts used in the 
 28.3   calculation of the investment's internal rate of return; and 
 28.4      (6) the age of the investment in years. 
 28.5      [EFFECTIVE DATE.] This section is effective the day 
 28.6   following final enactment. 
 28.7      Sec. 19.  Minnesota Statutes 2004, section 13.635, is 
 28.8   amended by adding a subdivision to read: 
 28.9      Subd. 1a.  [STATE BOARD OF INVESTMENT.] Certain government 
 28.10  data of the State Board of Investment related to investments are 
 28.11  classified under section 11A.24, subdivision 6. 
 28.12     Sec. 20.  [14.127] [LEGISLATIVE APPROVAL REQUIRED.] 
 28.13     Subdivision 1.  [COST THRESHOLDS.] An agency must determine 
 28.14  if the cost of complying with a proposed rule in the first year 
 28.15  after the rule takes effect will exceed $15,000 for:  (1) any 
 28.16  one business that has less than 50 full-time employees; or (2) 
 28.17  any one statutory or home rule charter city that has less than 
 28.18  ten full-time employees.  For purposes of this section, 
 28.19  "business" means a business entity organized for profit or as a 
 28.20  nonprofit, and includes an individual, partnership, corporation, 
 28.21  joint venture, association, or cooperative. 
 28.22     Subd. 2.  [AGENCY DETERMINATION.] An agency must make the 
 28.23  determination required by subdivision 1 before the close of the 
 28.24  hearing record, or before the agency submits the record to the 
 28.25  administrative law judge if there is no hearing.  The 
 28.26  administrative law judge must review and approve or disapprove 
 28.27  the agency determination under this section. 
 28.28     Subd. 3.  [LEGISLATIVE APPROVAL REQUIRED.] If the agency 
 28.29  determines that the cost exceeds the threshold in subdivision 1, 
 28.30  or if the administrative law judge disapproves the agency's 
 28.31  determination that the cost does not exceed the threshold in 
 28.32  subdivision 1, any business that has less than 50 full-time 
 28.33  employees or any statutory or home rule charter city that has 
 28.34  less than ten full-time employees may file a written statement 
 28.35  with the agency claiming a temporary exemption from the rules.  
 28.36  Upon filing of such a statement with the agency, the rules do 
 29.1   not apply to that business or that city until the rules are 
 29.2   approved by a law enacted after the agency determination or 
 29.3   administrative law judge disapproval. 
 29.4      Subd. 4.  [EXCEPTIONS.] (a) Subdivision 3 does not apply if 
 29.5   the administrative law judge approves an agency's determination 
 29.6   that the legislature has appropriated money to sufficiently fund 
 29.7   the expected cost of the rule upon the business or city proposed 
 29.8   to be regulated by the rule. 
 29.9      (b) Subdivision 3 does not apply if the administrative law 
 29.10  judge approves an agency's determination that the rule has been 
 29.11  proposed pursuant to a specific federal statutory or regulatory 
 29.12  mandate. 
 29.13     (c) This section does not apply if the rule is adopted 
 29.14  under section 14.388 or under another law specifying that the 
 29.15  rulemaking procedures of this chapter do not apply.  
 29.16     (d) This section does not apply to a rule adopted by the 
 29.17  Public Utilities Commission. 
 29.18     (e) Subdivision 3 does not apply if the governor waives 
 29.19  application of subdivision 3.  The governor may issue a waiver 
 29.20  at any time, either before or after the rule would take effect, 
 29.21  but for the requirement of legislative approval.  As soon as 
 29.22  possible after issuing a waiver under this paragraph, the 
 29.23  governor must send notice of the waiver to the speaker of the 
 29.24  house of representatives and the president of the senate and 
 29.25  must publish notice of this determination in the State Register. 
 29.26     Subd. 5.  [SEVERABILITY.] If an administrative law judge 
 29.27  determines that part of a proposed rule exceeds the threshold 
 29.28  specified in subdivision 1, but that a severable portion of a 
 29.29  proposed rule does not exceed the threshold in subdivision 1, 
 29.30  the administrative law judge may provide that the severable 
 29.31  portion of the rule that does not exceed the threshold may take 
 29.32  effect without legislative approval.  
 29.33     [EFFECTIVE DATE.] This section is effective July 1, 2005.  
 29.34  This section applies to any rule for which the hearing record 
 29.35  has not closed before July 1, 2005, or, if there is no public 
 29.36  hearing, for which the agency has not submitted the record to 
 30.1   the administrative law judge before that date. 
 30.2      Sec. 21.  Minnesota Statutes 2004, section 14.19, is 
 30.3   amended to read: 
 30.4      14.19 [DEADLINE TO COMPLETE RULEMAKING.] 
 30.5      Within 180 days after issuance of the administrative law 
 30.6   judge's report or that of the chief administrative law judge, 
 30.7   the agency shall submit its notice of adoption, amendment, or 
 30.8   repeal to the State Register for publication.  If the agency has 
 30.9   not submitted its notice to the State Register within 180 days, 
 30.10  the rule is automatically withdrawn.  The agency may not adopt 
 30.11  the withdrawn rules without again following the procedures of 
 30.12  sections 14.05 to 14.28, with the exception of section 14.101, 
 30.13  if the noncompliance is approved by the chief administrative law 
 30.14  judge.  The agency shall report to the Legislative Coordinating 
 30.15  Commission, other appropriate committees of the legislature, and 
 30.16  the governor its failure to adopt rules and the reasons for that 
 30.17  failure.  The 180-day time limit of this section does not 
 30.18  include:  
 30.19     (1) any days used for review by the chief administrative 
 30.20  law judge or the commission if the review is required by law; or 
 30.21     (2) days during which the rule cannot be adopted, because 
 30.22  of votes by legislative committees under section 14.126; or 
 30.23     (3) days during which the rule cannot be adopted because 
 30.24  approval of the legislature is required under section 14.127. 
 30.25     Sec. 22.  Minnesota Statutes 2004, section 15.054, is 
 30.26  amended to read: 
 30.27     15.054 [PUBLIC EMPLOYEES NOT TO PURCHASE MERCHANDISE FROM 
 30.28  GOVERNMENTAL AGENCIES; EXCEPTIONS; PENALTY.] 
 30.29     No officer or employee of the state or any of its political 
 30.30  subdivisions shall sell or procure for sale or possess or 
 30.31  control for sale to any other officer or employee of the state 
 30.32  or subdivision, as appropriate, any property or materials owned 
 30.33  by the state or subdivision except pursuant to conditions 
 30.34  provided in this section.  Property or materials owned by the 
 30.35  state or a subdivision and not needed for public purposes, may 
 30.36  be sold to an employee of the state or subdivision after 
 31.1   reasonable public notice at a public auction or by sealed 
 31.2   response, if the employee is not directly involved in the 
 31.3   auction or process pertaining to the administration and 
 31.4   collection of sealed responses.  Requirements for reasonable 
 31.5   public notice may be prescribed by other law or ordinance so 
 31.6   long as at least one week's published notice is specified.  An 
 31.7   employee of the state or a political subdivision may purchase no 
 31.8   more than one motor vehicle from the state in any 12-month 
 31.9   period at any one auction.  A person violating the provisions of 
 31.10  this section is guilty of a misdemeanor.  This section shall not 
 31.11  apply to the sale of property or materials acquired or produced 
 31.12  by the state or subdivision for sale to the general public in 
 31.13  the ordinary course of business.  Nothing in this section shall 
 31.14  prohibit an employee of the state or a political subdivision 
 31.15  from selling or possessing for sale public property if the sale 
 31.16  or possession for sale is in the ordinary course of business or 
 31.17  normal course of the employee's duties. 
 31.18     Sec. 23.  [15.445] [NOTIFICATION OF CERTAIN CHANGES TO 
 31.19  PROFESSIONAL LICENSURE LAWS AND RULES.] 
 31.20     An executive agency under section 16A.011, subdivision 12, 
 31.21  that issues a professional license must notify all current 
 31.22  license holders of any changes made to laws or rules 
 31.23  administered by the agency under which a fine or other sanction 
 31.24  may be imposed on a noncompliant license holder.  The agency 
 31.25  must notify all current license holders of the law or rule 
 31.26  changes by mail at their last known addresses on or before the 
 31.27  effective date of the changes. 
 31.28     Sec. 24.  [15.60] [PUBLIC SAFETY OFFICERS; AMERICAN FLAG.] 
 31.29     (a) A public employer may not forbid a peace officer or 
 31.30  firefighter from wearing a patch or pin depicting the flag of 
 31.31  the United States of America on the employee's uniform, 
 31.32  according to customary and standard flag etiquette.  However, a 
 31.33  public employer may limit the size of a flag patch worn on a 
 31.34  uniform to no more than three inches by five inches. 
 31.35     (b) For purposes of this section: 
 31.36     (1) "peace officer" has the meaning given in section 
 32.1   626.84, subdivision 1, paragraph (c) or (f); 
 32.2      (2) "firefighter" means a person as defined in section 
 32.3   299A.41, subdivision 4, clause (3) or (4); and 
 32.4      (3) "public employer" has the meaning given in section 
 32.5   179A.03, subdivision 15, and also includes a municipal fire 
 32.6   department and an independent nonprofit firefighting corporation.
 32.7      (c) A peace officer or firefighter who believes a public 
 32.8   employer is violating this section may request the attorney 
 32.9   general to issue an opinion on the issue.  Upon such a request, 
 32.10  the attorney general must issue a written opinion, which is 
 32.11  binding, unless a court makes a contrary decision.  If after 
 32.12  issuing an opinion, the attorney general determines that a 
 32.13  public employer continues to violate this section, the attorney 
 32.14  general may bring an action in district court to compel 
 32.15  compliance. 
 32.16     Sec. 25.  [15B.055] [PARKING SPACES.] 
 32.17     To provide the public with greater access to legislative 
 32.18  proceedings, all parking spaces on Aurora Avenue in front of the 
 32.19  Capitol building must be reserved for the public. 
 32.20     Sec. 26.  Minnesota Statutes 2004, section 15B.17, 
 32.21  subdivision 1, is amended to read: 
 32.22     Subdivision 1.  [PUBLIC BODIES WITH PROPOSALS.] (a) Before 
 32.23  a state agency or other public body develops, to submit to the 
 32.24  legislature and the governor, a budget proposal or plans for 
 32.25  capital improvements within the Capitol Area, it must consult 
 32.26  with the board. 
 32.27     (b) The public body must provide enough money for the 
 32.28  board's review and planning if the board decides its review and 
 32.29  planning services are necessary.  Money received by the board 
 32.30  under this subdivision and under section 15B.13, paragraph (e), 
 32.31  is appropriated to the board and does not cancel. 
 32.32     Sec. 27.  Minnesota Statutes 2004, section 16A.103, is 
 32.33  amended by adding a subdivision to read: 
 32.34     Subd. 4.  [REPORT ON EXPENDITURE INCREASES.] By January 10 
 32.35  of an odd-numbered year, the commissioner of finance must report 
 32.36  on those programs or components of programs for which 
 33.1   expenditures for the next biennium according to the forecast 
 33.2   issued the previous November are projected to increase more than 
 33.3   15 percent over the expenditures for that program in the current 
 33.4   biennium.  The report must include an analysis of the factors 
 33.5   that are causing the increases in expenditures. 
 33.6      Sec. 28.  Minnesota Statutes 2004, section 16A.1286, 
 33.7   subdivision 2, is amended to read: 
 33.8      Subd. 2.  [BILLING PROCEDURES.] The commissioner may bill 
 33.9   up to $7,520,000 in each fiscal year for statewide systems 
 33.10  services provided to state agencies, judicial branch agencies, 
 33.11  the University of Minnesota, the Minnesota State Colleges and 
 33.12  Universities, and other entities.  Billing must be based only on 
 33.13  usage of services relating to statewide systems provided by the 
 33.14  Intertechnologies Division.  Each agency shall transfer from 
 33.15  agency operating appropriations to the statewide systems account 
 33.16  the amount billed by the commissioner.  Billing policies and 
 33.17  procedures related to statewide systems services must be 
 33.18  developed by the commissioner in consultation with the 
 33.19  commissioners of employee relations and administration, the 
 33.20  University of Minnesota, and the Minnesota State Colleges and 
 33.21  Universities. 
 33.22     Sec. 29.  Minnesota Statutes 2004, section 16A.1286, 
 33.23  subdivision 3, is amended to read: 
 33.24     Subd. 3.  [APPROPRIATION.] Money transferred into the 
 33.25  account is appropriated to the commissioner to pay for statewide 
 33.26  systems services during the biennium in which it is appropriated.
 33.27     Sec. 30.  Minnesota Statutes 2004, section 16A.152, 
 33.28  subdivision 2, is amended to read: 
 33.29     Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] (a) If on the 
 33.30  basis of a forecast of general fund revenues and expenditures, 
 33.31  the commissioner of finance determines that there will be a 
 33.32  positive unrestricted budgetary general fund balance at the 
 33.33  close of the biennium, the commissioner of finance must allocate 
 33.34  money to the following accounts and purposes in priority order: 
 33.35     (1) the cash flow account established in subdivision 1 
 33.36  until that account reaches $350,000,000; 
 34.1      (2) the budget reserve account established in subdivision 
 34.2   1a until that account reaches $653,000,000; 
 34.3      (3) the amount necessary to increase the aid payment 
 34.4   schedule for school district aids and credits payments in 
 34.5   section 127A.45 to not more than 90 percent rounded to the 
 34.6   nearest tenth of a percent without exceeding the amount 
 34.7   available and with any remaining funds deposited in the budget 
 34.8   reserve; and 
 34.9      (4) the amount necessary to restore all or a portion of the 
 34.10  net aid reductions under section 127A.441 and to reduce the 
 34.11  property tax revenue recognition shift under section 123B.75, 
 34.12  subdivision 5, paragraph (c), and Laws 2003, First Special 
 34.13  Session chapter 9, article 5, section 34, as amended by Laws 
 34.14  2003, First Special Session chapter 23, section 20, by the same 
 34.15  amount. 
 34.16     (b) The amounts necessary to meet the requirements of this 
 34.17  section are appropriated from the general fund within two weeks 
 34.18  after the forecast is released or, in the case of transfers 
 34.19  under paragraph (a), clauses (3) and (4), as necessary to meet 
 34.20  the appropriations schedules otherwise established in statute. 
 34.21     (c) To the extent that a positive unrestricted budgetary 
 34.22  general fund balance is projected, appropriations under this 
 34.23  section must be made before any transfer is made under section 
 34.24  16A.1522 takes effect. 
 34.25     (d) The commissioner of finance shall certify the total 
 34.26  dollar amount of the reductions under paragraph (a), clauses (3) 
 34.27  and (4), to the commissioner of education.  The commissioner of 
 34.28  education shall increase the aid payment percentage and reduce 
 34.29  the property tax shift percentage by these amounts and apply 
 34.30  those reductions to the current fiscal year and thereafter.  
 34.31     Sec. 31.  Minnesota Statutes 2004, section 16A.1522, 
 34.32  subdivision 1, is amended to read: 
 34.33     Subdivision 1.  [FORECAST.] If, on the basis of a forecast 
 34.34  of general fund revenues and expenditures in November of an 
 34.35  even-numbered year or February of an odd-numbered year, the 
 34.36  commissioner projects a positive unrestricted budgetary general 
 35.1   fund balance at the close of the biennium that exceeds one-half 
 35.2   of one percent of total general fund biennial revenues, the 
 35.3   commissioner shall designate the entire balance as available for 
 35.4   rebate to the taxpayers of this state.  In forecasting, 
 35.5   projecting, or designating the unrestricted budgetary general 
 35.6   fund balance or general fund biennial revenue under this 
 35.7   section, the commissioner shall not include any balance or 
 35.8   revenue attributable to settlement payments received after July 
 35.9   1, 1998, and before July 1, 2001, as defined in Section IIB of 
 35.10  the settlement document, filed May 18, 1998, in State v. Philip 
 35.11  Morris, Inc., No. C1-94-8565 (Minnesota District Court, Second 
 35.12  Judicial District).  
 35.13     Sec. 32.  [16A.156] [LIMIT ON ADMINISTRATIVE COSTS.] 
 35.14     As a condition of receiving a grant from an appropriation 
 35.15  of state funds, the person or entity receiving the grant must 
 35.16  agree that no more than ten percent of the grant funds will be 
 35.17  spent for administrative purposes.  This limit does not apply if 
 35.18  the commissioner of finance determines, after consulting with 
 35.19  the chairs of appropriate legislative budget committees, that 
 35.20  this limit is impracticable because the legislative intent in 
 35.21  appropriating money for the grant is that more than ten percent 
 35.22  of the grant is administrative in nature. 
 35.23     Sec. 33.  Minnesota Statutes 2004, section 16A.281, is 
 35.24  amended to read: 
 35.25     16A.281 [APPROPRIATIONS TO LEGISLATURE.] 
 35.26     Except as provided in this section, section 16A.28 applies 
 35.27  to appropriations made to the legislature, the senate, the house 
 35.28  of representatives, or its committees or commissions.  An 
 35.29  appropriation made to the legislature, the senate, the house of 
 35.30  representatives, or a legislative commission or committee other 
 35.31  than a standing committee, if not spent during the first year, 
 35.32  may be spent during the second year of a biennium.  An 
 35.33  unexpended balance not carried forward and remaining unexpended 
 35.34  and unencumbered at the end of a biennium lapses and shall be 
 35.35  returned to the fund from which appropriated.  Balances may be 
 35.36  carried forward into the next biennium and credited to special 
 36.1   accounts to be used only as follows:  (1) for nonrecurring 
 36.2   expenditures on investments that enhance efficiency or improve 
 36.3   effectiveness; (2) to pay expenses associated with special 
 36.4   sessions, interim activities, public hearings, or other public 
 36.5   outreach efforts and related activities; and (3) to pay 
 36.6   severance costs of involuntary terminations.  The approval of 
 36.7   the commissioner of finance under section 16A.28, subdivision 2, 
 36.8   does not apply to the legislature.  An appropriation made to the 
 36.9   legislature, the senate, the house of representatives, or a 
 36.10  standing committee for all or part of a biennium may be spent in 
 36.11  either year of the biennium. 
 36.12     Sec. 34.  [16A.696] [UNIVERSITY OF MINNESOTA AWARD OF 
 36.13  CAPITAL IMPROVEMENT CONTRACTS.] 
 36.14     Notwithstanding any law to the contrary, any appropriation 
 36.15  for capital improvement projects for the University of Minnesota 
 36.16  is contingent on the University agreeing that contracts for the 
 36.17  projects will be awarded under the procedures in sections 16C.25 
 36.18  to 16C.28, except that the Board of Regents must perform 
 36.19  responsibilities assigned to the commissioner of administration. 
 36.20     Sec. 35.  [16B.296] [TRANSFER OF REAL PROPERTY.] 
 36.21     Unless otherwise provided by the commissioner, an agency 
 36.22  may not sell or otherwise transfer state-owned real property for 
 36.23  less than the appraised value, or if the property has not been 
 36.24  appraised, for less than the fair market value, as determined by 
 36.25  the commissioner.  For purposes of this section, "agency" 
 36.26  includes the Minnesota State Colleges and Universities. 
 36.27     Sec. 36.  Minnesota Statutes 2004, section 16B.52, 
 36.28  subdivision 1, is amended to read: 
 36.29     Subdivision 1.  [PERMISSIBLE PUBLICATIONS; PICTURES.] (a) 
 36.30  No elected, administrative, or executive state officer, may have 
 36.31  printed, nor may the commissioner authorize the printing of, at 
 36.32  government expense, official reports and other publications 
 36.33  intended for general public circulation except those authorized 
 36.34  by law or included in the intent of the appropriation out of 
 36.35  which the cost will be defrayed.  
 36.36     (b) A publication printed at government expense by an 
 37.1   elected or appointed executive officer must contain only 
 37.2   material that provides information about the duties and 
 37.3   jurisdiction of the officer or the officer's organization, or 
 37.4   facilitates public access to services offered by the officer or 
 37.5   organization.  All material in the publication must be directly 
 37.6   related to the legal functions, duties, and jurisdiction of the 
 37.7   public official or organization.  
 37.8      (c) Executive officers shall, before presenting their 
 37.9   annual reports and other publications to the commissioner, 
 37.10  examine them and exclude from them pictures of elected and 
 37.11  administrative officials, and any other pictorial device 
 37.12  calculated to or tending to attribute the publication to an 
 37.13  individual instead of the department of state government from 
 37.14  which it emanates.  All other engravings, maps, drawings and 
 37.15  illustrations must be excluded from the reports and 
 37.16  publications, except those the executive officers certify when 
 37.17  they present the reports for printing to be necessary and to 
 37.18  relate entirely to the transaction of the state's business, or 
 37.19  to be reasonably required to present for clear understanding the 
 37.20  substance of the report.  
 37.21     Sec. 37.  [16C.061] [USED GOODS.] 
 37.22     When acquiring goods, the commissioner or the agency making 
 37.23  the acquisition must consider purchasing used goods if used 
 37.24  goods may result in the best value for the purchasing entity.  
 37.25     Sec. 38.  [16C.064] [COST-BENEFIT ANALYSIS.] 
 37.26     (a) The commissioner or an agency official to whom the 
 37.27  commissioner has delegated duties under section 16C.03, 
 37.28  subdivision 16, may not approve a contract or purchase of goods 
 37.29  or services in an amount greater than $5,000,000 unless a 
 37.30  cost-benefit analysis has been completed and shows a positive 
 37.31  benefit to the public.  The Management Analysis Division must 
 37.32  perform or direct the performance of the analysis.  A 
 37.33  cost-benefit analysis must be performed for a project if an 
 37.34  aggregation of contracts or purchases for a project exceeds 
 37.35  $5,000,000. 
 37.36     (b) All cost-benefit analysis documents under this section, 
 38.1   including preliminary drafts and notes, are public data. 
 38.2      (c) If a cost-benefit analysis does not show a positive 
 38.3   benefit to the public, the governor may approve a contract or 
 38.4   purchase of goods or services if a cost-effectiveness study had 
 38.5   been done that shows the proposed project is the most effective 
 38.6   way to provide a necessary public good. 
 38.7      (d) This section applies to contracts for goods or services 
 38.8   that are expected to have a useful life of more than three 
 38.9   years.  This section does not apply for purchase of goods or 
 38.10  services for response to a natural disaster if an emergency has 
 38.11  been declared by the governor. 
 38.12     Sec. 39.  Minnesota Statutes 2004, section 16C.10, 
 38.13  subdivision 7 is amended to read:  
 38.14     Subd. 7.  [REVERSE AUCTION.] (a) For the purpose of this 
 38.15  subdivision, "reverse auction" means a purchasing process in 
 38.16  which vendors compete to provide goods or engineering design or 
 38.17  computer services at the lowest selling price in an open and 
 38.18  interactive environment. 
 38.19     (b) The provisions of sections 13.591, subdivision 3, and 
 38.20  16C.06, subdivision 2, do not apply when the commissioner 
 38.21  determines that a reverse auction is the appropriate purchasing 
 38.22  process.  
 38.23     Sec. 40.  [16C.143] [ENERGY FORWARD PRICING MECHANISMS.] 
 38.24     Subdivision 1.  [DEFINITIONS.] The following definitions 
 38.25  apply in this section: 
 38.26     (1) "energy" means natural gas, heating oil, propane, and 
 38.27  any other energy source except electricity used in state 
 38.28  facilities; and 
 38.29     (2) "forward pricing mechanism" means a contract or 
 38.30  financial instrument that obligates a state agency to buy or 
 38.31  sell a specified quantity of energy at a future date at a set 
 38.32  price. 
 38.33     Subd. 2.  [AUTHORITY.] Notwithstanding any other law to the 
 38.34  contrary, the commissioner may use forward pricing mechanisms 
 38.35  for budget risk reduction. 
 38.36     Subd. 3.  [CONDITIONS.] Forward pricing mechanism 
 39.1   transactions must be made only under the following conditions: 
 39.2      (1) the quantity of energy affected by the forward pricing 
 39.3   mechanism must not exceed 90 percent of the estimated energy use 
 39.4   for the state agency for the same period, which shall not exceed 
 39.5   24 months; and 
 39.6      (2) a separate account must be established for each state 
 39.7   agency using a forward pricing mechanism. 
 39.8      Subd. 4.  [WRITTEN POLICIES AND PROCEDURES.] Before 
 39.9   exercising the authority under this section, the commissioner 
 39.10  must develop written policies and procedures governing the use 
 39.11  of forward pricing mechanisms.  
 39.12     [EFFECTIVE DATE.] This section is effective the day 
 39.13  following final enactment. 
 39.14     Sec. 41.  Minnesota Statutes 2004, section 16C.144, is 
 39.15  amended to read: 
 39.16     16C.144 [GUARANTEED ENERGY SAVINGS CONTRACTS PROGRAM.] 
 39.17     Subdivision 1.  [DEFINITIONS.] The following definitions 
 39.18  apply to this section.  
 39.19     (a) "Utility" means electricity, natural gas, or other 
 39.20  energy resource, water, and wastewater. 
 39.21     (b) "Utility cost savings" means the difference between the 
 39.22  utility costs under the precontract conditions and the utility 
 39.23  costs after the changes have been made under the contract.  Such 
 39.24  savings shall be calculated in comparison to an established 
 39.25  baseline of utility costs installation of the utility 
 39.26  cost-savings measures pursuant to the guaranteed energy savings 
 39.27  agreement and the baseline utility costs after baseline 
 39.28  adjustments have been made. 
 39.29     (c) "Established baseline" means the precontract utilities, 
 39.30  operations, and maintenance costs.  
 39.31     (d) "Baseline" means the preagreement utilities, 
 39.32  operations, and maintenance costs. 
 39.33     (d) "Utility cost-savings measure" means a measure that 
 39.34  produces utility cost savings and/or operation and maintenance 
 39.35  cost savings.  
 39.36     (e) "Operation and maintenance cost savings" means a 
 40.1   measurable decrease in difference between operation and 
 40.2   maintenance costs after the installation of the utility 
 40.3   cost-savings measures pursuant to the guaranteed energy savings 
 40.4   agreement and the baseline operation and maintenance costs that 
 40.5   is a direct result of the implementation of one or more utility 
 40.6   cost-savings measures but does after inflation adjustments have 
 40.7   been made.  Operation and maintenance costs savings shall not 
 40.8   include savings from in-house staff labor.  Such savings shall 
 40.9   be calculated in comparison to an established baseline of 
 40.10  operation and maintenance costs. 
 40.11     (f) "Guaranteed energy savings contract agreement" means a 
 40.12  contract an agreement for the evaluation, recommendation, and 
 40.13  installation of one or more utility cost-savings measures that 
 40.14  includes the qualified provider's guarantee as required under 
 40.15  subdivision 2.  The contract must provide that all payments are 
 40.16  to be made over time but not to exceed ten years from the date 
 40.17  of final installation, and the savings are guaranteed to the 
 40.18  extent necessary to make payments for the utility cost-savings 
 40.19  measures.  
 40.20     (g) "Baseline adjustments" means adjusting the established 
 40.21  utility cost savings baselines in paragraphs (b) and 
 40.22  (d) annually for changes in the following variables: 
 40.23     (1) utility rates; 
 40.24     (2) number of days in the utility billing cycle; 
 40.25     (3) square footage of the facility; 
 40.26     (4) operational schedule of the facility; 
 40.27     (5) facility temperature set points; 
 40.28     (6) weather; and 
 40.29     (7) amount of equipment or lighting utilized in the 
 40.30  facility.  
 40.31     (h) "Inflation adjustment" means adjusting the operation 
 40.32  and maintenance cost-savings baseline annually for inflation. 
 40.33     (i) "Lease purchase contract agreement" means a 
 40.34  contract an agreement obligating the state to make regular lease 
 40.35  payments to satisfy the lease costs of the utility cost-savings 
 40.36  measures until the final payment, after which time the utility 
 41.1   cost-savings measures become the sole property of the state of 
 41.2   Minnesota.  
 41.3      (i) (j) "Qualified provider" means a person or business 
 41.4   experienced in the design, implementation, and installation of 
 41.5   utility cost-savings measures. 
 41.6      (j) (k) "Engineering report" means a report prepared by a 
 41.7   professional engineer licensed by the state of Minnesota 
 41.8   summarizing estimates of all costs of installations, 
 41.9   modifications, or remodeling, including costs of design, 
 41.10  engineering, installation, maintenance, repairs, and estimates 
 41.11  of the amounts by which utility and operation and maintenance 
 41.12  costs will be reduced.  
 41.13     (k) (l) "Capital cost avoidance" means money expended by a 
 41.14  state agency to pay for utility cost-savings measures with a 
 41.15  guaranteed savings contract agreement so long as the measures 
 41.16  that are being implemented to achieve the utility, operation, 
 41.17  and maintenance cost savings are a significant portion of an 
 41.18  overall project as determined by the commissioner. 
 41.19     (l) (m) "Guaranteed energy savings contracting program 
 41.20  guidelines" means policies, procedures, and requirements of 
 41.21  guaranteed savings contracts agreements established by the 
 41.22  Department of Administration upon enacting this legislation. 
 41.23     Subd. 2.  [GUARANTEED ENERGY SAVINGS CONTRACT AGREEMENT.] 
 41.24  The commissioner may enter into a guaranteed energy savings 
 41.25  contract agreement with a qualified provider if: 
 41.26     (1) the qualified provider is selected through a 
 41.27  competitive process in accordance with the guaranteed energy 
 41.28  savings contracting program guidelines within the Department of 
 41.29  Administration; 
 41.30     (2) the qualified provider agrees to submit an engineering 
 41.31  report prior to the execution of the guaranteed energy savings 
 41.32  contract agreement.  The cost of the engineering report may be 
 41.33  considered as part of the implementation costs if the 
 41.34  commissioner enters into a guaranteed energy savings agreement 
 41.35  with the provider; 
 41.36     (3) the term of the guaranteed energy savings agreement 
 42.1   shall not exceed 15 years from the date of final installation; 
 42.2      (4) the commissioner finds that the amount it would spend 
 42.3   on the utility cost-savings measures recommended in the 
 42.4   engineering report will not exceed the amount to be saved in 
 42.5   utility operation and maintenance costs over ten 15 years from 
 42.6   the date of implementation of utility cost-savings measures; 
 42.7      (4) (5) the qualified provider provides a written guarantee 
 42.8   that the annual utility, operation, and maintenance cost savings 
 42.9   during the term of the guaranteed energy savings agreement will 
 42.10  meet or exceed the costs of the guaranteed savings contract 
 42.11  annual payments due under a lease purchase agreement.  The 
 42.12  qualified provider shall reimburse the state for any shortfall 
 42.13  of guaranteed utility, operation, and maintenance cost savings; 
 42.14  and 
 42.15     (5) (6) the qualified provider gives a sufficient bond in 
 42.16  accordance with section 574.26 to the commissioner for the 
 42.17  faithful implementation and installation of the utility 
 42.18  cost-savings measures.  
 42.19     Subd. 3.  [LEASE PURCHASE CONTRACT AGREEMENT.] The 
 42.20  commissioner may enter into a lease purchase agreement with any 
 42.21  party for the implementation of utility cost-savings measures in 
 42.22  accordance with an engineering report the guaranteed energy 
 42.23  savings agreement.  The implementation costs of the utility 
 42.24  cost-savings measures recommended in the engineering report 
 42.25  shall not exceed the amount to be saved in utility and operation 
 42.26  and maintenance costs over the term of the lease purchase 
 42.27  agreement.  The term of the lease purchase agreement shall not 
 42.28  exceed ten 15 years from the date of final installation.  The 
 42.29  lease is assignable in accordance with terms approved by the 
 42.30  commissioner of finance. 
 42.31     Subd. 4.  [USE OF CAPITAL COST AVOIDANCE.] The affected 
 42.32  state agency may contribute funds for capital cost avoidance for 
 42.33  guaranteed energy savings contracts agreements.  Use of capital 
 42.34  cost avoidance is subject to the guaranteed energy savings 
 42.35  contracting program guidelines within the Department of 
 42.36  Administration. 
 43.1      Subd. 5.  [REPORT.] By January 15 of 2005 and 2007, the 
 43.2   commissioner of administration shall submit to the commissioner 
 43.3   of finance and the chairs of the senate and house of 
 43.4   representatives capital investment committees a list of projects 
 43.5   in the agency that have been funded using guaranteed energy 
 43.6   savings, as outlined in this section, during the preceding 
 43.7   biennium.  For each guaranteed energy savings contract agreement 
 43.8   entered into, the commissioner of administration shall contract 
 43.9   with an independent third party to evaluate the 
 43.10  cost-effectiveness of each utility cost-savings measure 
 43.11  implemented to ensure that such measures were the least-cost 
 43.12  measures available.  For the purposes of this section, 
 43.13  "independent third party" means an entity not affiliated with 
 43.14  the qualified provider, that is not involved in creating or 
 43.15  providing conservation project services to that provider, and 
 43.16  that has expertise (or access to expertise) in energy savings 
 43.17  practices.  
 43.18     Subd. 6.  [CONTRACT LIMITS.] Contracts may not be entered 
 43.19  into after June 30, 2007. 
 43.20     [EFFECTIVE DATE.] This section is effective the day 
 43.21  following final enactment. 
 43.22     Sec. 42.  Minnesota Statutes 2004, section 16C.16, 
 43.23  subdivision 1, is amended to read: 
 43.24     Subdivision 1.  [SMALL BUSINESS PROCUREMENTS.] (a) The 
 43.25  commissioner shall for each fiscal year ensure that small 
 43.26  businesses receive at least 25 percent of the value of 
 43.27  anticipated total state procurement of goods and services, 
 43.28  including printing and construction.  The commissioner shall 
 43.29  divide the procurements so designated into contract award units 
 43.30  of economically feasible production runs in order to facilitate 
 43.31  offers or bids from small businesses.  
 43.32     (b) The commissioner must avoid awarding a master contract 
 43.33  on an exclusive basis if awarding the contract on that basis 
 43.34  excludes small businesses.  When feasible, when entering into a 
 43.35  master contract, the commissioner must attempt to negotiate 
 43.36  contract terms that allow agencies the option of purchasing from 
 44.1   small businesses, particularly small businesses that are 
 44.2   geographically proximate to the entity making the purchase. 
 44.3      (c) In making the annual designation of such procurements 
 44.4   the commissioner shall attempt (1) to vary the included 
 44.5   procurements so that a variety of goods and services produced by 
 44.6   different small businesses are obtained each year, and (2) to 
 44.7   designate small business procurements in a manner that will 
 44.8   encourage proportional distribution of such awards among the 
 44.9   geographical regions of the state.  To promote the geographical 
 44.10  distribution of awards, the commissioner may designate a portion 
 44.11  of the small business procurement for award to bidders from a 
 44.12  specified congressional district or other geographical region 
 44.13  specified by the commissioner.  The failure of the commissioner 
 44.14  to designate particular procurements shall not be deemed to 
 44.15  prohibit or discourage small businesses from seeking the 
 44.16  procurement award through the normal process.  
 44.17     Sec. 43.  Minnesota Statutes 2004, section 16C.16, is 
 44.18  amended by adding a subdivision to read: 
 44.19     Subd. 7a.  [VEHICLE PURCHASES.] For purposes of state 
 44.20  purchasing, the commissioner may award a bid preference to motor 
 44.21  vehicles manufactured in Minnesota.  The amount of the 
 44.22  preference must be the same as the amount of the preference 
 44.23  awarded to businesses located in an economically disadvantaged 
 44.24  area. 
 44.25     Sec. 44.  Minnesota Statutes 2004, section 16C.23, is 
 44.26  amended by adding a subdivision to read:  
 44.27     Subd. 6a.  [COMPUTERS FOR SCHOOLS.] The commissioner may 
 44.28  transfer state surplus computers to Minnesota Computers for 
 44.29  Schools for refurbishing and distribution to any school, school 
 44.30  system, college, or university in Minnesota.  
 44.31     Sec. 45.  [16C.231] [SURPLUS PROPERTY.] 
 44.32     Notwithstanding any law to the contrary, the commissioner 
 44.33  may sell a surplus gun used by a state trooper to the trooper 
 44.34  who used the gun in the course of employment.  The sale price 
 44.35  must be the fair market value of the gun, as determined by the 
 44.36  commissioner. 
 45.1      Sec. 46.  Minnesota Statutes 2004, section 240A.02, 
 45.2   subdivision 3, is amended to read: 
 45.3      Subd. 3.  [STAFF.] The commission governor shall appoint an 
 45.4   executive director, who serves at the pleasure of the governor.  
 45.5   The executive director may hire other employees authorized by 
 45.6   the commission.  The executive director is in the unclassified 
 45.7   service under section 43A.08. 
 45.8      Sec. 47.  [298.215] [IRON RANGE RESOURCES AND 
 45.9   REHABILITATION; EARLY SEPARATION INCENTIVE PROGRAM 
 45.10  AUTHORIZATION.] 
 45.11     (a) Notwithstanding any law to the contrary, the 
 45.12  commissioner of iron range resources and rehabilitation, in 
 45.13  consultation with the commissioner of employee relations, may 
 45.14  offer a targeted early separation incentive program for 
 45.15  employees of the commissioner who have attained the age of 60 
 45.16  years and have at least five years of allowable service credit 
 45.17  under chapter 352, or who have received credit for at least 30 
 45.18  years of allowable service under the provisions of chapter 352. 
 45.19     (b) The early separation incentive program may include one 
 45.20  or more of the following: 
 45.21     (1) employer-paid postseparation health, medical, and 
 45.22  dental insurance until age 65; and 
 45.23     (2) cash incentives that may, but are not required to be, 
 45.24  used to purchase additional years of service credit through the 
 45.25  Minnesota State Retirement System, to the extent that the 
 45.26  purchases are otherwise authorized by law. 
 45.27     (c) The commissioner of iron range resources and 
 45.28  rehabilitation shall establish eligibility requirements for 
 45.29  employees to receive an incentive. 
 45.30     (d) The commissioner of iron range resources and 
 45.31  rehabilitation, consistent with the established program 
 45.32  provisions under paragraph (b), and with the eligibility 
 45.33  requirements under paragraph (c), may designate specific 
 45.34  programs or employees as eligible to be offered the incentive 
 45.35  program. 
 45.36     (e) Acceptance of the offered incentive must be voluntary 
 46.1   on the part of the employee and must be in writing.  The 
 46.2   incentive may only be offered at the sole discretion of the 
 46.3   commissioner of iron range resources and rehabilitation. 
 46.4      (f) The cost of the incentive is payable solely by funds 
 46.5   made available to the commissioner of iron range resources and 
 46.6   rehabilitation by law, but only on prior approval of the 
 46.7   expenditures by a majority of the Iron Range Resources and 
 46.8   Rehabilitation Board. 
 46.9      (g) This section and section 298.216 are repealed June 30, 
 46.10  2006. 
 46.11     [EFFECTIVE DATE.] This section is effective the day 
 46.12  following final enactment. 
 46.13     Sec. 48.  [298.216] [APPLICATION OF OTHER LAWS.] 
 46.14     Unilateral implementation of section 298.215 by the 
 46.15  commissioner of iron range resources and rehabilitation is not 
 46.16  an unfair labor practice under chapter 179A. 
 46.17     Sec. 49.  Minnesota Statutes 2004, section 471.345, is 
 46.18  amended by adding a subdivision to read: 
 46.19     Subd. 19.  [USED SUPPLIES, MATERIALS, AND EQUIPMENT.] When 
 46.20  acquiring supplies, materials, or equipment, a municipality must 
 46.21  consider purchasing used goods if used goods may result in the 
 46.22  best value for the municipality.  
 46.23     Sec. 50.  [471.661] [OUT-OF-STATE TRAVEL.] 
 46.24     No elected official of a statutory or home rule charter 
 46.25  city, county, town, school district, regional agency, or other 
 46.26  political subdivision of the state may incur more than $1,000 in 
 46.27  publicly paid costs for a trip outside of Minnesota unless the 
 46.28  costs are approved by a roll-call vote at a public meeting of 
 46.29  the governing board held before the trip. 
 46.30     Sec. 51.  [471.701] [SALARY DATA.] 
 46.31     A city or county with a population of more than 15,000 must 
 46.32  annually notify its residents of the names and salaries of its 
 46.33  three highest-paid employees.  This notice may be provided on 
 46.34  the homepage of the primary Web site maintained by the political 
 46.35  subdivision for a period of not less than 90 consecutive days, 
 46.36  in a publication of the political subdivision that is 
 47.1   distributed to all residents in the political subdivision, or as 
 47.2   part of the annual notice of proposed property taxes prepared 
 47.3   under section 275.065. 
 47.4      Sec. 52.  [BUILDING LEASE.] 
 47.5      Notwithstanding any provision of Minnesota Statutes, 
 47.6   section 16B.24, or other law or rule to the contrary, the 
 47.7   commissioner of administration may, without approval of the 
 47.8   State Executive Council, enter into a lease of up to ten years 
 47.9   with a private tenant for use of the state-owned building at 168 
 47.10  Aurora Avenue in the city of St. Paul as a child care and 
 47.11  after-school activity facility.  If leased to a faith-based 
 47.12  organization, the program may not promote any particular faith 
 47.13  and must operate in a nondiscriminatory manner.  
 47.14     [EFFECTIVE DATE.] This section is effective the day 
 47.15  following final enactment. 
 47.16     Sec. 53.  [SALE OF STATE LAND.] 
 47.17     Subdivision 1.  [STATE LAND SALES.] The commissioner of 
 47.18  administration shall coordinate with the head of each department 
 47.19  or agency having control of state-owned land to identify and 
 47.20  sell at least $6,440,000 of state-owned land.  Sales should be 
 47.21  completed according to law and as provided in this section as 
 47.22  soon as practicable but no later than June 30, 2007.  
 47.23  Notwithstanding Minnesota Statutes, sections 16B.281 and 
 47.24  16B.282, 94.09 and 94.10, or any other law to the contrary, the 
 47.25  commissioner may offer land for public sale by only providing 
 47.26  notice of lands or an offer of sale of lands to state 
 47.27  departments or agencies, the University of Minnesota, cities, 
 47.28  counties, towns, school districts, or other public entities. 
 47.29     Subd. 2.  [ANTICIPATED SAVINGS.] Notwithstanding Minnesota 
 47.30  Statutes, section 94.16, subdivision 3, or other law to the 
 47.31  contrary, the amount of the proceeds from the sale of land under 
 47.32  this section that exceeds the actual expenses of selling the 
 47.33  land must be deposited in the general fund, except as otherwise 
 47.34  provided by the commissioner of finance.  Notwithstanding 
 47.35  Minnesota Statutes, section 94.11 or 16B.283, the commissioner 
 47.36  of finance may establish the timing of payments for land 
 48.1   purchased under this section.  If the total of all money 
 48.2   deposited into the general fund from the proceeds of the sale of 
 48.3   land under this section is anticipated to be less than 
 48.4   $6,440,000, the governor must allocate the amount of the 
 48.5   difference as reductions to general fund operating expenditures 
 48.6   for other executive agencies for the biennium ending June 30, 
 48.7   2007.  
 48.8      Subd. 3.  [SALE OF STATE LANDS REVOLVING LOAN 
 48.9   FUND.] $290,000 is appropriated from the general fund in fiscal 
 48.10  year 2006 to the commissioner of administration for purposes of 
 48.11  paying the actual expenses of selling state-owned lands to 
 48.12  achieve the anticipated savings required in this section.  From 
 48.13  the gross proceeds of land sales under this section, the 
 48.14  commissioner of administration must cancel the amount of the 
 48.15  appropriation in this subdivision to the general fund by June 
 48.16  30, 2007. 
 48.17     Sec. 54.  [STUDY OF STATE VEHICLES.] 
 48.18     The commissioner of administration must issue a request for 
 48.19  proposal seeking a private entity to conduct an independent 
 48.20  study of all light vehicles owned by executive branch agencies, 
 48.21  including constitutional offices but not the Minnesota State 
 48.22  Colleges and Universities.  The study must include: 
 48.23     (1) an inventory of state-owned vehicles, detailing the 
 48.24  type and model of each vehicle, the primary location of each 
 48.25  vehicle, and the primary agency to which each vehicle is 
 48.26  assigned; 
 48.27     (2) the cost to the state of purchasing, maintaining, and 
 48.28  operating various types of state-owned vehicles; and 
 48.29     (3) an evaluation of the desirability of centralizing the 
 48.30  responsibility for state fleet management in an office of fleet 
 48.31  management within the Department of Administration. 
 48.32     The contractor must report the results of the study to the 
 48.33  legislature by January 15, 2006. 
 48.34     Sec. 55.  [REQUEST FOR PROPOSAL; VEHICLES.] 
 48.35     If the commissioner determines it would be in the best 
 48.36  interests of the state, the commissioner of administration must 
 49.1   issue a request for proposal, seeking a private entity to assume 
 49.2   responsibility for maintenance and management of all vehicles 
 49.3   owned by executive branch agencies.  For purposes of this 
 49.4   section, "executive branch agencies" includes constitutional 
 49.5   offices, but not the Minnesota State Colleges and Universities.  
 49.6   The commissioner may expand the scope of the request for 
 49.7   proposal to include private ownership of some or all of the 
 49.8   state vehicles covered by this section. 
 49.9      Sec. 56.  [REQUEST FOR PROPOSAL; FORD BUILDING.] 
 49.10     The commissioner of administration must issue a request for 
 49.11  proposal, seeking a private entity to lease the Ford Building at 
 49.12  117 University Avenue in St. Paul.  Notwithstanding any law to 
 49.13  the contrary, the lease may be for a term of up to 20 years.  
 49.14  The lease documents must provide that the tenant may not tear 
 49.15  down the building and may not alter the historic features of the 
 49.16  facade of the building. 
 49.17     Sec. 57.  [REQUEST FOR PROPOSAL; REAL ESTATE.] 
 49.18     By October 1, 2005, the commissioner of administration must 
 49.19  issue a request for proposal, seeking a private entity to 
 49.20  assume, at no cost to the state, some or all of the 
 49.21  commissioner's responsibilities for providing real estate 
 49.22  management services to state agencies, including leasing 
 49.23  state-owned space under custodial control of the Department of 
 49.24  Administration to state agencies, arranging for leases of 
 49.25  non-state-owned space on behalf of state agencies, relocation of 
 49.26  state agencies, and sale and rental of state-owned property to 
 49.27  others.  Notwithstanding any law to the contrary, the 
 49.28  commissioner may enter into a contract with a private entity to 
 49.29  provide these services, beginning no later than July 1, 2006. 
 49.30     Sec. 58.  [TRAINING SERVICES.] 
 49.31     During the biennium ending June 30, 2007, state executive 
 49.32  agencies must consider using services provided by the Government 
 49.33  Training Services before contracting with other outside vendors 
 49.34  for similar services. 
 49.35     Sec. 59.  [ASSESSMENT OF PUBLIC ACCESS TO INTERNET-BASED 
 49.36  GOVERNMENT INFORMATION.] 
 50.1      The commissioner of administration, in partnership with an 
 50.2   institution or institutions of higher education located in 
 50.3   Minnesota, shall assess public access to Internet-based 
 50.4   governmental information and applications and the availability 
 50.5   of Internet access for citizens to perform other Internet-based 
 50.6   activities such as applying for jobs or citizenship, college 
 50.7   entrance scholarships, and other activities that promote 
 50.8   self-sufficiency and civic participation.  The commissioner 
 50.9   shall report the results to the legislature by August 1, 2006. 
 50.10     Sec. 60.  [STUDY OF WATER AND SEWER BILLING.] 
 50.11     The League of Minnesota Cities is requested to convene a 
 50.12  working group to study issues relating to collection of 
 50.13  delinquent water and sewer bills from owners, lessees, and 
 50.14  occupants of rental property.  The working group should include 
 50.15  representatives of cities, owners of rental property, municipal 
 50.16  utilities, and tenants.  The working group is requested to 
 50.17  report its findings and recommendations to the legislature by 
 50.18  January 15, 2006. 
 50.19     Sec. 61.  [PORTRAITS.] 
 50.20     The Capitol Area Architectural and Planning Board, in 
 50.21  consultation with the Minnesota Historical Society, must request 
 50.22  the Smithsonian Institution to extend the period during which 
 50.23  the portraits of Julie Finch Gilbert and Cass Gilbert are 
 50.24  displayed in the Capitol building.  In negotiating an extension 
 50.25  of the loan period, the board must request that the portraits 
 50.26  remain on display in the Capitol when they are not being 
 50.27  publicly displayed elsewhere, but must recognize that it is 
 50.28  desirable for the portraits to be displayed in other buildings 
 50.29  designed by Cass Gilbert, in conjunction with centennial 
 50.30  celebrations for those buildings.  
 50.31     Sec. 62.  [COYA KNUTSON MEMORIALS.] 
 50.32     The commissioner of administration shall establish 
 50.33  memorials in the Capitol building and in the city of Oklee 
 50.34  honoring Coya Knutson, who:  
 50.35     (1) served two terms in the Minnesota House of 
 50.36  Representatives, representing Red Lake, Pennington, and 
 51.1   Clearwater Counties; 
 51.2      (2) was elected to the United States House of 
 51.3   Representatives in 1954, becoming the first woman elected from 
 51.4   Minnesota to the United States Congress; 
 51.5      (3) was reelected to Congress in 1956; and 
 51.6      (4) died on October 10, 1996.  
 51.7      With respect to the memorial in the Capitol building, the 
 51.8   commissioner, with the assistance and approval of the Capitol 
 51.9   Area Architectural and Planning Board, shall select an 
 51.10  appropriate site, establish design criteria, choose a design, 
 51.11  and supervise construction.  With respect to the memorial in 
 51.12  Oklee, the commissioner shall request the governing body of the 
 51.13  city of Oklee to designate an appropriate site and, in 
 51.14  consultation with the governing body, establish design criteria, 
 51.15  choose a design, and supervise construction. 
 51.16     Sec. 63.  [REPEALER.] 
 51.17     Minnesota Statutes 2004, sections 3.9222; 16A.151, 
 51.18  subdivision 5; 16A.30; and 240A.08, are repealed.  Minnesota 
 51.19  Statutes 2004, section 16B.33, is repealed June 30, 2007.  
 51.20                             ARTICLE 3 
 51.21                         PUBLIC EMPLOYMENT
 51.22     Section 1.  Minnesota Statutes 2004, section 43A.23, 
 51.23  subdivision 1, is amended to read: 
 51.24     Subdivision 1.  [GENERAL.] The commissioner is authorized 
 51.25  to request bids from carriers or to negotiate with carriers and 
 51.26  to enter into contracts with carriers parties which in the 
 51.27  judgment of the commissioner are best qualified to underwrite 
 51.28  and provide service to the benefit plans.  Contracts entered 
 51.29  into with carriers are not subject to the requirements of 
 51.30  sections 16C.16 to 16C.19.  The commissioner may negotiate 
 51.31  premium rates and coverage provisions with all carriers licensed 
 51.32  under chapters 62A, 62C, and 62D.  The commissioner may also 
 51.33  negotiate reasonable restrictions to be applied to all carriers 
 51.34  under chapters 62A, 62C, and 62D.  Contracts to underwrite the 
 51.35  benefit plans must be bid or negotiated separately from 
 51.36  contracts to service the benefit plans, which may be awarded 
 52.1   only on the basis of competitive bids.  The commissioner shall 
 52.2   consider the cost of the plans, conversion options relating to 
 52.3   the contracts, service capabilities, character, financial 
 52.4   position, and reputation of the carriers, and any other factors 
 52.5   which the commissioner deems appropriate.  Each benefit contract 
 52.6   must be for a uniform term of at least one year, but may be made 
 52.7   automatically renewable from term to term in the absence of 
 52.8   notice of termination by either party.  The commissioner shall, 
 52.9   to the extent feasible, make hospital and medical benefits 
 52.10  available from at least one carrier licensed to do business 
 52.11  pursuant to each of chapters 62A, 62C, and 62D.  The 
 52.12  commissioner need not provide health maintenance organization 
 52.13  services to an employee who resides in an area which is not 
 52.14  served by a licensed health maintenance organization.  The 
 52.15  commissioner may refuse to allow a health maintenance 
 52.16  organization to continue as a carrier.  The commissioner may 
 52.17  elect not to offer all three types of carriers if there are no 
 52.18  bids or no acceptable bids by that type of carrier or if the 
 52.19  offering of additional carriers would result in substantial 
 52.20  additional administrative costs.  A carrier licensed under 
 52.21  chapter 62A is exempt from the taxes imposed by chapter 297I on 
 52.22  premiums paid to it by the state. 
 52.23     All self-insured hospital and medical service products must 
 52.24  comply with coverage mandates, data reporting, and consumer 
 52.25  protection requirements applicable to the licensed carrier 
 52.26  administering the product, had the product been insured, 
 52.27  including chapters 62J, 62M, and 62Q.  Any self-insured products 
 52.28  that limit coverage to a network of providers or provide 
 52.29  different levels of coverage between network and nonnetwork 
 52.30  providers shall comply with section 62D.123 and geographic 
 52.31  access standards for health maintenance organizations adopted by 
 52.32  the commissioner of health in rule under chapter 62D. 
 52.33     Sec. 2.  [43A.346] [POSTRETIREMENT OPTION.] 
 52.34     Subdivision 1.  [DEFINITION.] For purposes of this section, 
 52.35  "employee" means a person currently occupying a civil service 
 52.36  position in the executive branch of state government, the 
 53.1   Minnesota State Retirement System, or the Office of the 
 53.2   Legislative Auditor, or a person employed by the Metropolitan 
 53.3   Council. 
 53.4      Subd. 2.  [ELIGIBILITY.] This section applies to a state or 
 53.5   Metropolitan Council employee who: 
 53.6      (1) for at least the five years immediately preceding 
 53.7   separation under clause (2), has been regularly scheduled to 
 53.8   work 1,044 or more hours per year in a position covered by a 
 53.9   pension plan administered by the Minnesota State Retirement 
 53.10  System or the Public Employees Retirement Association; 
 53.11     (2) terminates state or Metropolitan Council employment; 
 53.12     (3) at the time of termination under clause (2), meets the 
 53.13  age and service requirements necessary to receive an unreduced 
 53.14  retirement annuity from the plan and satisfies requirements for 
 53.15  the commencement of the retirement annuity or, for an employee 
 53.16  under the unclassified employees retirement plan, meets the age 
 53.17  and service requirements necessary to receive an unreduced 
 53.18  retirement annuity from the plan and satisfies requirements for 
 53.19  the commencement of the retirement annuity or elects a lump-sum 
 53.20  payment; and 
 53.21     (4) agrees to accept a postretirement option position with 
 53.22  the same or a different appointing authority, working a reduced 
 53.23  schedule that is both (i) a reduction of at least 25 percent 
 53.24  from the employee's number of regularly scheduled work hours; 
 53.25  and (ii) 1,044 hours or less in state or Metropolitan Council 
 53.26  service. 
 53.27     Subd. 3.  [UNCLASSIFIED SERVICE.] Notwithstanding any law 
 53.28  to the contrary, state postretirement option positions shall be 
 53.29  in the unclassified service but shall not be covered by the 
 53.30  Minnesota State Retirement System unclassified employees plan.  
 53.31     Subd. 4.  [ANNUITY REDUCTION NOT APPLICABLE.] 
 53.32  Notwithstanding any law to the contrary, when an eligible state 
 53.33  employee in a postretirement option position under this section 
 53.34  commences receipt of the annuity, the provisions of section 
 53.35  352.115, subdivision 10, or 353.37 governing annuities of 
 53.36  reemployed annuitants, shall not apply for the duration of 
 54.1   employment in the position. 
 54.2      Subd. 5.  [APPOINTING AUTHORITY DISCRETION.] The appointing 
 54.3   authority has sole discretion to determine if and the extent to 
 54.4   which a postretirement option position under this section is 
 54.5   available to a state employee.  Any offer of such a position 
 54.6   must be made in writing to the employee by the appointing 
 54.7   authority on a form prescribed by the Department of Employee 
 54.8   Relations and the Minnesota State Retirement System or the 
 54.9   Public Employees Retirement Association.  The appointing 
 54.10  authority may not require a person to waive any rights under a 
 54.11  collective bargaining agreement or unrepresented employee 
 54.12  compensation plan as a condition of participation. 
 54.13     Subd. 6.  [DURATION.] Postretirement option employment 
 54.14  shall be for an initial period not to exceed one year.  During 
 54.15  that period, the appointing authority may not modify the 
 54.16  conditions specified in the written offer without the employee's 
 54.17  agreement, except as required by law or by the collective 
 54.18  bargaining agreement or compensation plan applicable to the 
 54.19  employee.  At the end of the initial period, the appointing 
 54.20  authority has sole discretion to determine if the offer of a 
 54.21  postretirement option position will be renewed, renewed with 
 54.22  modifications, or terminated.  Postretirement option employment 
 54.23  may be renewed for periods of up to one year, not to exceed a 
 54.24  total duration of five years.  No person shall be employed in 
 54.25  one or a combination of postretirement option positions under 
 54.26  this section for a total of more than five years. 
 54.27     Subd. 7.  [COPY TO FUND.] The appointing authority shall 
 54.28  provide the Minnesota State Retirement System or the Public 
 54.29  Employees Retirement Association with a copy of the offer, the 
 54.30  employee's acceptance of the terms, and any subsequent renewal 
 54.31  agreement. 
 54.32     Subd. 8.  [NO SERVICE CREDIT.] Notwithstanding any law to 
 54.33  the contrary, a person may not earn service credit in the 
 54.34  Minnesota State Retirement System or the Public Employees 
 54.35  Retirement Association for employment covered under this 
 54.36  section, and employer contributions and payroll deductions for 
 55.1   the retirement fund must not be made based on earnings of a 
 55.2   person working under this section.  No change shall be made to a 
 55.3   monthly annuity or retirement allowance based on employment 
 55.4   under this section. 
 55.5      Subd. 9.  [INSURANCE CONTRIBUTION.] Notwithstanding any law 
 55.6   to the contrary, the appointing authority must make an employer 
 55.7   insurance contribution for a person who is employed in a 
 55.8   postretirement option position under this section and who is not 
 55.9   receiving any other state-paid or Metropolitan Council-paid 
 55.10  employer insurance contribution.  The amount of the contribution 
 55.11  must be equal to the percent time worked in the postretirement 
 55.12  option position (hours scheduled to be worked annually divided 
 55.13  by 2,088) times 1.5 times the full employer contribution for 
 55.14  employee-only health and dental coverage.  The appointing 
 55.15  authority must contribute that amount to a health reimbursement 
 55.16  arrangement. 
 55.17     Subd. 10.  [SUBSEQUENT EMPLOYMENT.] If a person has been in 
 55.18  a postretirement option position and accepts any other position 
 55.19  in state or Metropolitan Council-paid service, in the subsequent 
 55.20  state or Metropolitan Council-paid employment the person may not 
 55.21  earn service credit in the Minnesota State Retirement System or 
 55.22  Public Employees Retirement Association, no employer 
 55.23  contributions or payroll deductions for the retirement fund 
 55.24  shall be made, and the provisions of section 352.115, 
 55.25  subdivision 10, or section 353.37, shall apply. 
 55.26     Sec. 3.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
 55.27     (a) Appointing authorities in state government may allow 
 55.28  each employee to take unpaid leaves of absence for up to 1,040 
 55.29  hours between July 1, 2005, and June 30, 2007.  Each appointing 
 55.30  authority approving such a leave shall allow the employee to 
 55.31  continue accruing vacation and sick leave, be eligible for paid 
 55.32  holidays and insurance benefits, accrue seniority, and, if 
 55.33  payments are made under paragraph (b), accrue service credit and 
 55.34  credited salary in the state retirement plans as if the employee 
 55.35  had actually been employed during the time of leave.  An 
 55.36  employee covered by the unclassified plan may voluntarily make 
 56.1   the employee contributions to the unclassified plan during the 
 56.2   leave of absence.  If the employee makes these contributions, 
 56.3   the appointing authority must make the employer contribution.  
 56.4   If the leave of absence is for one full pay period or longer, 
 56.5   any holiday pay shall be included in the first payroll warrant 
 56.6   after return from the leave of absence.  The appointing 
 56.7   authority shall attempt to grant requests for the unpaid leaves 
 56.8   of absence consistent with the need to continue efficient 
 56.9   operation of the agency.  However, each appointing authority 
 56.10  shall retain discretion to grant or refuse to grant requests for 
 56.11  leaves of absence and to schedule and cancel leaves, subject to 
 56.12  the applicable provisions of collective bargaining agreements 
 56.13  and compensation plans. 
 56.14     (b) To receive eligible service credit and credited salary 
 56.15  in a defined benefit plan, the member shall pay an amount equal 
 56.16  to the applicable employee contribution rates.  If an employee 
 56.17  pays the employee contribution for the period of the leave under 
 56.18  this section, the appointing authority must pay the employer 
 56.19  contribution.  The appointing authority may, at its discretion, 
 56.20  pay the employee contributions.  Contributions must be made in a 
 56.21  time and manner prescribed by the executive director of the 
 56.22  applicable pension plan. 
 56.23     [EFFECTIVE DATE.] This section is effective the day 
 56.24  following final enactment. 
 56.25     Sec. 4.  [LABOR AGREEMENTS AND COMPENSATION PLANS.] 
 56.26     Subdivision 1.  [AMERICAN FEDERATION OF STATE, COUNTY, AND 
 56.27  MUNICIPAL EMPLOYEES.] The arbitration award and labor agreement 
 56.28  between the state of Minnesota and the American Federation of 
 56.29  State, County, and Municipal Employees, unit 8, approved by the 
 56.30  Legislative Coordinating Commission Subcommittee on Employee 
 56.31  Relations on June 14, 2004, is ratified. 
 56.32     Subd. 2.  [MINNESOTA LAW ENFORCEMENT ASSOCIATION; 
 56.33  ARBITRATION AWARD.] The arbitration award between the state of 
 56.34  Minnesota and the Minnesota Law Enforcement Association, 
 56.35  approved by the Legislative Coordinating Commission Subcommittee 
 56.36  on Employee Relations on June 14, 2004, is ratified. 
 57.1      Subd. 3.  [HIGHER EDUCATION SERVICES OFFICE; COMPENSATION 
 57.2   PLAN.] The compensation plan for unrepresented employees of the 
 57.3   Higher Education Services Office, approved by the Legislative 
 57.4   Coordinating Commission Subcommittee on Employee Relations on 
 57.5   June 14, 2004, is ratified. 
 57.6      Subd. 4.  [MINNESOTA LAW ENFORCEMENT ASSOCIATION; 
 57.7   BARGAINING AGREEMENT.] The collective bargaining agreement 
 57.8   between the state of Minnesota and the Minnesota Law Enforcement 
 57.9   Association, submitted to the Legislative Coordinating 
 57.10  Commission Subcommittee on Employee Relations on September 29, 
 57.11  2004, and implemented after 30 days on October 30, 2004, is 
 57.12  ratified. 
 57.13     Subd. 5.  [INTER FACULTY ORGANIZATION.] The collective 
 57.14  bargaining agreement between the state of Minnesota and the 
 57.15  Inter Faculty Organization, submitted to the Legislative 
 57.16  Coordinating Commission Subcommittee on Employee Relations on 
 57.17  September 29, 2004, and implemented after 30 days on October 29, 
 57.18  2004, is ratified. 
 57.19     Subd. 6.  [MINNESOTA NURSES ASSOCIATION.] The arbitration 
 57.20  award and the collective bargaining agreement between the state 
 57.21  of Minnesota and the Minnesota Nurses Association, approved by 
 57.22  the Legislative Coordinating Commission Subcommittee on Employee 
 57.23  Relations on December 20, 2004, is ratified. 
 57.24     Subd. 7.  [TEACHERS RETIREMENT ASSOCIATION.] The proposal 
 57.25  to increase the salary of the executive director of the Teachers 
 57.26  Retirement Association, as modified and approved by the 
 57.27  Legislative Coordinating Commission Subcommittee on Employee 
 57.28  Relations on December 20, 2004, is ratified. 
 57.29     Subd. 8.  [MINNESOTA STATE RETIREMENT SYSTEM.] The proposal 
 57.30  to increase the salary of the executive director of the 
 57.31  Minnesota State Retirement System, as modified and approved by 
 57.32  the Legislative Coordinating Commission Subcommittee on Employee 
 57.33  Relations on December 20, 2004, is ratified. 
 57.34     Subd. 9.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION.] The 
 57.35  proposal to increase the salary of the executive director of the 
 57.36  Public Employees Retirement Association, as modified and 
 58.1   approved by the Legislative Coordinating Commission Subcommittee 
 58.2   on Employee Relations on December 20, 2004, is ratified. 
 58.3      [EFFECTIVE DATE.] This section is effective the day 
 58.4   following final enactment. 
 58.5                              ARTICLE 4 
 58.6                            STATE MANDATES
 58.7      Section 1.  [471B.01] [DEFINITIONS.] 
 58.8      Subdivision 1.  [SCOPE.] For purposes of this chapter, the 
 58.9   terms defined in this section have the meanings given them. 
 58.10     Subd. 2.  [LOCAL GOVERNMENT.] "Local government" means a 
 58.11  county, town, school district, or statutory or home rule charter 
 58.12  city. 
 58.13     Subd. 3.  [LOCAL GOVERNMENT OF THE SAME KIND.] "Local 
 58.14  government of the same kind" means any category of the 
 58.15  following:  all cities, all counties, all school districts, or 
 58.16  all towns. 
 58.17     Subd. 4.  [SAME CLASS.] "Same class" means all cities of 
 58.18  the same class. 
 58.19     Subd. 5.  [SCHOOL DISTRICT.] "School district" means a 
 58.20  common, independent, or special school district and excludes 
 58.21  charter schools. 
 58.22     Subd. 6.  [STATE MANDATE.] "State mandate" means a state 
 58.23  law or rule specifically directed at or related to local 
 58.24  government structure, operation, services, programs, or 
 58.25  financing that: 
 58.26     (1) imposes a cost on a local government, whether or not 
 58.27  the state appropriates money for the local government to cover 
 58.28  the total costs of the mandate, or specifically authorizes the 
 58.29  local government to impose a tax or fee to cover the costs; 
 58.30     (2) decreases revenue available to a local government 
 58.31  without a commensurate decrease in services and programs 
 58.32  required by the law or rule; 
 58.33     (3) makes a local government, or its officers or employees, 
 58.34  civilly or criminally liable for failure to follow or enforce 
 58.35  the law or rule; 
 58.36     (4) restricts the ability of a local government to 
 59.1   establish services, programs, policies, plans, or goals, or 
 59.2   restricts its ability to raise revenue or finance its services, 
 59.3   programs, policies, plans, or goals; or 
 59.4      (5) implements or interprets federal law and, by its 
 59.5   implementation or interpretation, increases or decreases 
 59.6   program, service, or funding levels. 
 59.7      Sec. 2.  [471B.02] [REFORM OR OPT OUT RESOLUTION AND 
 59.8   PROCEDURES.] 
 59.9      Subdivision 1.  [LOCAL PROCEDURE.] (a) A local government 
 59.10  may, by written resolution of the governing body after public 
 59.11  notice and hearing, propose that a state mandate imposed on all 
 59.12  local governments of the same kind or class, except a state 
 59.13  mandate under section 471B.03, should not apply to it.  A local 
 59.14  government also may include in a resolution recommendations for 
 59.15  reforming a mandate.  A local government must adopt a separate 
 59.16  resolution for each mandate under section 471B.03, that it 
 59.17  proposes should not apply to it.  The resolution must: 
 59.18     (1) specifically cite the state law or rule that imposes 
 59.19  the mandate on the local government; 
 59.20     (2) identify any costs of complying with the mandate and 
 59.21  the total amount of federal and state funds available for 
 59.22  complying with the mandate; 
 59.23     (3) state the reasons the local government needs to opt out 
 59.24  of the state mandate and may recommend mandate reforms to 
 59.25  achieve greater efficiencies; and 
 59.26     (4) indicate how the local government will otherwise meet 
 59.27  the objectives of the mandate or why the objectives do not apply 
 59.28  to the local government. 
 59.29     (b) Before voting on the resolution, the governing body 
 59.30  must give adequate public notice of the proposed resolution, 
 59.31  including information on whether state or federal funding for 
 59.32  the local government might be adversely affected.  The governing 
 59.33  body must hold at least one public hearing on the proposed 
 59.34  resolution and afford the public opportunity for comment.  The 
 59.35  governing body must encourage public participation in the 
 59.36  hearing in order to determine the extent of public support for 
 60.1   the proposed resolution. 
 60.2      (c) The proponent of the proposed resolution at least must 
 60.3   identify at the hearing: 
 60.4      (1) the costs of complying with the mandate that exceed the 
 60.5   state and federal funds allocated to the district for purposes 
 60.6   of the mandate and recommend reforms for achieving greater 
 60.7   efficiencies; 
 60.8      (2) any potential loss of state or federal revenue that 
 60.9   might result from opting out of the state mandate; 
 60.10     (3) other policy issues or effects that might result; 
 60.11     (4) the purposes for which the mandate was imposed; 
 60.12     (5) any persons or categories of person who will be 
 60.13  adversely affected if the mandate is not complied with; and 
 60.14     (6) the costs and benefits of the mandate compared to the 
 60.15  costs and benefits of inaction. 
 60.16     (d) A local government that adopts a resolution must file 
 60.17  the resolution with the state auditor.  At the time of filing, 
 60.18  the local government must pay the state auditor a fee to cover 
 60.19  actual costs the state auditor incurs in performing the duties 
 60.20  under this section.  The amount of the fee is as follows: 
 60.21     (1) for each resolution filed by a local government with a 
 60.22  population over 100,000, $500; 
 60.23     (2) for each resolution filed by a local government with a 
 60.24  population over 20,000 and not more than 100,000, $350; 
 60.25     (3) for each resolution filed by a local government with a 
 60.26  population over 10,000 and not more than 20,000, $200; and 
 60.27     (4) for each resolution filed by a local government with a 
 60.28  population of not more than 10,000, $50. 
 60.29  All fees collected under this section are appropriated to the 
 60.30  state auditor for the purposes of this section.  On July 1, 
 60.31  2005, and each July 1 thereafter, using the powers granted under 
 60.32  chapter 6, the auditor must determine the actual costs of 
 60.33  performing the duties under this section and adjust the amount 
 60.34  of the fee to reflect the auditor's actual costs. 
 60.35     Subd. 2.  [STATE PROCEDURE.] The state auditor must: 
 60.36     (1) list on the state auditor's Web site all state mandates 
 61.1   cited in a resolution filed with the state auditor, identifying 
 61.2   for each mandate the local governments that adopted and filed a 
 61.3   resolution to opt out of a mandate, and whether the threshold 
 61.4   under subdivision 3 for opting out is met; 
 61.5      (2) keep a running total of the number and percent of local 
 61.6   governments of the same kind and, if applicable, same class, 
 61.7   that have filed a resolution to opt out; and 
 61.8      (3) notify the legislature when the threshold under 
 61.9   subdivision 3 for opting out is met.  
 61.10     Subd. 3.  [THRESHOLD AND CERTIFICATION FOR OPTING OUT; 
 61.11  LEGISLATIVE OVERSIGHT.] (a) The state auditor must notify the 
 61.12  house of representatives and senate when the auditor certifies 
 61.13  that the minimum number of local governments of the same kind, 
 61.14  and, if applicable, same class, file resolutions under the 
 61.15  requirements of this chapter.  The minimum number is set in 
 61.16  paragraph (c).  The legislature may consider at least seven 
 61.17  certified opt out or reform proposals from each government of 
 61.18  the same kind or class listed in paragraph (c) submitted as a 
 61.19  notice from the auditor delivered to the legislature before the 
 61.20  regular session convenes in any year.  The resolutions shall not 
 61.21  have any effect for implementation unless approved by law under 
 61.22  this subdivision. 
 61.23     (b) The house of representatives and senate may adopt rules 
 61.24  ensuring that bills to specifically address at least seven 
 61.25  mandates for which the minimum number of resolutions have been 
 61.26  filed are given a priority status and presented to the house and 
 61.27  senate for consideration and action by that body in a timely 
 61.28  manner during the regular session that year. 
 61.29     (c) The minimum number of local governments of the same 
 61.30  kind or class are: 
 61.31     (1) six counties; 
 61.32     (2) 25 home rule charter cities; 
 61.33     (3) 50 statutory cities; 
 61.34     (4) two cities of the first class; 
 61.35     (5) 14 cities of the second class; 
 61.36     (6) 11 cities of the third class; 
 62.1      (7) 50 cities of the fourth class; 
 62.2      (8) 75 towns; and 
 62.3      (9) 24 school districts. 
 62.4      Subd. 4.  [OPT OUT OR REFORM IMPLEMENTATION AND LATER 
 62.5   OPTING OUT OR REFORMS.] After initial opt-out resolutions are 
 62.6   approved by the legislature and take effect, other local 
 62.7   governments of the same kind and, if applicable, same class, may 
 62.8   file resolutions to opt out of the same mandate.  The 
 62.9   later-filed resolutions must be consistent with the law enacted 
 62.10  in response to the initial opt-out resolutions and later-filed 
 62.11  resolutions are only effective to the extent authorized by that 
 62.12  law.  Each of these takes effect 30 days after the auditor 
 62.13  accepts the filing. 
 62.14                             ARTICLE 5 
 62.15                    MINNEAPOLIS TEACHER PENSIONS 
 62.16     Section 1.  Minnesota Statutes 2004, section 354A.08, is 
 62.17  amended to read: 
 62.18     354A.08 [AUTHORIZED INVESTMENTS.] 
 62.19     (a) A teachers retirement fund association may receive, 
 62.20  hold, and dispose of real estate or personal property acquired 
 62.21  by it, whether the acquisition was by purchase, or any other 
 62.22  lawful means, as provided in this chapter or in the 
 62.23  association's articles of incorporation.  In addition to other 
 62.24  authorized real estate investments, an association may also 
 62.25  invest funds in Minnesota situs nonfarm real estate ownership 
 62.26  interests or loans secured by mortgages or deeds of trust. 
 62.27     (b) All or a portion of the assets of a first class city 
 62.28  teacher retirement fund association may be invested by the State 
 62.29  Board of Investment under section 11A.14.  
 62.30     Sec. 2.  Minnesota Statutes 2004, section 354A.12, 
 62.31  subdivision 3a, is amended to read: 
 62.32     Subd. 3a.  [SPECIAL DIRECT STATE AID TO FIRST CLASS CITY 
 62.33  TEACHERS RETIREMENT FUND ASSOCIATIONS.] (a) In fiscal year 1998, 
 62.34  the state shall pay $4,827,000 to the St. Paul Teachers 
 62.35  Retirement Fund Association, $17,954,000 to the Minneapolis 
 62.36  Teachers Retirement Fund Association, and $486,000 to the Duluth 
 63.1   Teachers Retirement Fund Association.  In each subsequent fiscal 
 63.2   year, these payments the state shall pay to the first class city 
 63.3   teachers retirement fund associations must be $2,827,000 
 63.4   $2,967,000 for the St. Paul, $12,954,000 Teachers Retirement 
 63.5   Fund Association and $13,300,000 for the Minneapolis, and 
 63.6   $486,000 for Duluth Teachers Retirement Fund Association. 
 63.7      (b) The direct state aids under this subdivision are 
 63.8   payable October 1 annually.  The commissioner of finance shall 
 63.9   pay the direct state aid.  The amount required under this 
 63.10  subdivision is appropriated annually from the general fund to 
 63.11  the commissioner of finance. 
 63.12     (c) The direct state aid for the Minneapolis Teachers 
 63.13  Retirement Fund Association is governed by section 354A.121.  
 63.14     Sec. 3.  Minnesota Statutes 2004, section 354A.12, 
 63.15  subdivision 3b, is amended to read: 
 63.16     Subd. 3b.  [SPECIAL DIRECT STATE MATCHING AID TO THE 
 63.17  MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION.] (a) Special 
 63.18  School District No. 1 may make an additional employer 
 63.19  contribution to the Minneapolis Teachers Retirement Fund 
 63.20  Association.  The city of Minneapolis may make a contribution to 
 63.21  the Minneapolis Teachers Retirement Fund Association.  This 
 63.22  contribution may be made by a levy of the board of estimate and 
 63.23  taxation of the city of Minneapolis and the levy, if made, is 
 63.24  classified as that of a special taxing district for purposes of 
 63.25  sections 275.065 and 276.04, and for all other property tax 
 63.26  purposes. 
 63.27     (b) For every $1,000 contributed in equal proportion by 
 63.28  Special School District No. 1 and by the city of Minneapolis to 
 63.29  the Minneapolis Teachers Retirement Fund Association under 
 63.30  paragraph (a), the state shall pay to the Minneapolis Teachers 
 63.31  Retirement Fund Association $1,000, but not to exceed $2,500,000 
 63.32  in total in fiscal year 1994.  The superintendent of Special 
 63.33  School District No. 1, the mayor of the city of Minneapolis, and 
 63.34  the executive director of the Minneapolis Teachers Retirement 
 63.35  Fund Association shall jointly certify to the commissioner of 
 63.36  finance the total amount that has been contributed by Special 
 64.1   School District No. 1 and by the city of Minneapolis to the 
 64.2   Minneapolis Teachers Retirement Fund Association.  Any 
 64.3   certification to the commissioner of education must be made 
 64.4   quarterly.  If the total certifications for a fiscal year exceed 
 64.5   the maximum annual direct state matching aid amount in any 
 64.6   quarter, the amount of direct state matching aid payable to the 
 64.7   Minneapolis Teachers Retirement Fund Association must be limited 
 64.8   to the balance of the maximum annual direct state matching aid 
 64.9   amount available.  The amount required under this paragraph, 
 64.10  subject to the maximum direct state matching aid amount, is 
 64.11  appropriated annually to the commissioner of finance.  The state 
 64.12  matching aid is governed by section 354A.121.  
 64.13     (c) The commissioner of finance may prescribe the form of 
 64.14  the certifications required under paragraph (b). 
 64.15     Sec. 4.  [354A.121] [INVESTMENT PROCEDURES FOR STATE AID TO 
 64.16  MINNEAPOLIS TEACHERS RETIREMENT PLAN.] 
 64.17     (a) Notwithstanding any provision of law to the contrary, 
 64.18  special direct state aid to the Minneapolis Teachers Retirement 
 64.19  Fund Association under section 354A.12, subdivision 3a or 3b, 
 64.20  and amortization or supplementary amortization state aid 
 64.21  reallocated to the Minneapolis Teachers Retirement Fund 
 64.22  Association, must be transferred and invested as provided in 
 64.23  this section. 
 64.24     (b) State aid for the Minneapolis Teachers Retirement Fund 
 64.25  Association referenced in paragraph (a) must be transferred to 
 64.26  the executive director of the State Board of Investment for 
 64.27  investment in the Minnesota supplemental investment fund.  The 
 64.28  Minneapolis Teachers Retirement Fund Association state aid 
 64.29  amounts and any investment return obtained on those amounts must 
 64.30  be invested in the income share account unless the executive 
 64.31  director of the State Board of Investment, after appropriate 
 64.32  consultation with the board of trustees of the Minneapolis 
 64.33  Teachers Retirement Fund Association, determines that the amount 
 64.34  should be invested in a different account.  The executive 
 64.35  director of the State Board of Investment, after appropriate 
 64.36  consultation with the board, may transfer amounts between 
 65.1   accounts in the Minnesota supplemental investment fund.  
 65.2      (c) If the assets of the Minneapolis teachers retirement 
 65.3   fund other than the assets to the credit of the Minneapolis 
 65.4   teachers retirement fund in the Minnesota supplemental 
 65.5   investment fund are insufficient to pay retirement annuities and 
 65.6   benefits that are due and payable or the reasonable and 
 65.7   necessary administrative expenses of the retirement plan that 
 65.8   are due and payable, the executive director of the State Board 
 65.9   of Investment shall transfer the required amount to meet that 
 65.10  insufficiency to the chief administrative officer of the 
 65.11  Minneapolis Teachers Retirement Fund Association. 
 65.12     (d) For purposes of annual actuarial valuations and annual 
 65.13  financial reports, the shares in the Minnesota supplemental 
 65.14  investment fund owned by the Minneapolis teachers retirement 
 65.15  fund must be considered an asset of the Minneapolis teachers 
 65.16  retirement fund. 
 65.17     Sec. 5.  [354A.281] [MINNEAPOLIS TEACHERS RETIREMENT FUND 
 65.18  ASSOCIATION; POSTRETIREMENT ADJUSTMENTS.] 
 65.19     On January 1, 2006, and every January 1 thereafter, 
 65.20  eligible annuitants and benefit recipients of the Minneapolis 
 65.21  Teachers Retirement Fund Association are entitled to a 
 65.22  percentage postretirement adjustment equal to the percentage 
 65.23  adjustment payable under section 11A.18.  Eligibility for a 
 65.24  postretirement adjustment must be governed by section 11A.18, 
 65.25  subdivision 9, paragraphs (c), clause (2), and (e).  
 65.26     Sec. 6.  [REPEALER.] 
 65.27     (a) Minnesota Statutes, section 354A.28, is repealed.  
 65.28     (b) Article 30, sections 30.3, 30.4, and 30.5, of the 
 65.29  restated articles of incorporation of the Minneapolis Teachers 
 65.30  Retirement Fund Association are repealed. 
 65.31     Sec. 7.  [EFFECTIVE DATE.] 
 65.32     Sections 1 to 6 are effective July 1, 2005. 
 65.33                             ARTICLE 6 
 65.34                              MILITARY 
 65.35     Section 1.  Minnesota Statutes 2004, section 43A.183, is 
 65.36  amended to read: 
 66.1      43A.183 [PAYMENT OF SALARY DIFFERENTIAL FOR RESERVE FORCES 
 66.2   WHO REPORTED FOR ACTIVE SERVICE.] 
 66.3      (a) Each agency head shall pay to each eligible member of 
 66.4   the National Guard or other reserve component of the United 
 66.5   States Armed Forces of the United States an amount equal to the 
 66.6   difference between the member's basic active duty military 
 66.7   salary and the salary the member would be paid as an active 
 66.8   state employee, including any adjustments the member would have 
 66.9   received if not on leave of absence person's salary differential 
 66.10  for each month or portion of month that the person is ordered to 
 66.11  serve in active military service.  The person's salary 
 66.12  differential is calculated as the difference between: 
 66.13     (1) the person's monthly total gross earnings as an active 
 66.14  state employee, excluding any overtime pay received but 
 66.15  including all other earnings, averaged over the last three full 
 66.16  months of the person's active state employment prior to 
 66.17  reporting to active military service, and including any 
 66.18  additional salary or earnings adjustments that the person would 
 66.19  have received at anytime during the person's military leave had 
 66.20  the person been serving as an active state employee during that 
 66.21  time; and 
 66.22     (2) the person's monthly base pay in active military 
 66.23  service.  
 66.24     This payment may be made only to a person whose basic 
 66.25  active duty military salary is less than the salary the person 
 66.26  would be paid as an active state employee for whom the amount in 
 66.27  clause (1) is greater than the amount in clause (2).  Payments 
 66.28  must be made at the intervals at which the member received pay 
 66.29  as a state employee, except that any back pay due under this 
 66.30  section may be paid as a lump sum.  Payment under this section 
 66.31  must not extend beyond four years from the date the employee 
 66.32  reported for active service, plus any additional time the 
 66.33  employee may be legally required to serve.  An eligible member 
 66.34  of the National Guard or other reserve component of the United 
 66.35  States Armed Forces may apply for the pay differential benefits 
 66.36  authorized under this section prior to, during, or following the 
 67.1   person's active military service on or after May 29, 2003. 
 67.2      (b) An eligible member of the reserve components of the 
 67.3   United States Armed Forces of the United States is a reservist 
 67.4   or National Guard member who was an employee of the state of 
 67.5   Minnesota at the time the member reported took military leave 
 67.6   under section 192.261 to report for active military service. 
 67.7      (c) For the purposes of this section, an employee of the 
 67.8   state is an employee of the executive, judicial, or legislative 
 67.9   branch of state government or an employee of the Minnesota State 
 67.10  Retirement System, the Public Employee Retirement Association, 
 67.11  or the Teachers Retirement Association. 
 67.12     (d) For purposes of this section, the term "active service" 
 67.13  has the meaning given in section 190.05, subdivision 5, but 
 67.14  excludes service performed exclusively for purposes of: 
 67.15     (1) basic combat training, advanced individual training, 
 67.16  annual training, and periodic inactive duty training; 
 67.17     (2) special training periodically made available to reserve 
 67.18  members; and 
 67.19     (3) service performed in accordance with section 190.08, 
 67.20  subdivision 3; and 
 67.21     (4) service performed as part of the active guard/reserve 
 67.22  program pursuant to United States Code, title 32, section 
 67.23  502(f), or other applicable authority. 
 67.24     (e) The agency head must continue the employee's enrollment 
 67.25  in health and dental coverage, and the employer contribution 
 67.26  toward that coverage, until the employee is covered by health 
 67.27  and dental coverage provided by the armed forces reports for 
 67.28  active military service.  If the employee had elected dependent 
 67.29  coverage for health or dental coverage as of the time that the 
 67.30  employee reported for active service, the agency head must offer 
 67.31  the employee the option to continue the dependent coverage at 
 67.32  the employee's own expense.  The agency head must permit the 
 67.33  employee to continue participating in any pretax account in 
 67.34  which the employee participated when the employee reported for 
 67.35  active service, to the extent of employee pay available for that 
 67.36  purpose.  An employee who has opted to continue a permitted 
 68.1   benefit may cancel that continuation at anytime during the 
 68.2   person's military leave by written notification from the 
 68.3   employee, or from the employee's designated attorney-in-fact 
 68.4   under a power of attorney, to the agency head or the 
 68.5   commissioner of employee relations. 
 68.6      (f) The agency head must periodically inform in writing all 
 68.7   agency personnel who are or may be members of the reserve 
 68.8   component of the United States Armed Forces of the benefits 
 68.9   provided under this section and of the procedures relevant to 
 68.10  securing those benefits, including, but not limited to, any 
 68.11  procedures regarding the continuation and discontinuation of any 
 68.12  optional deductions.  It will suffice to meet this requirement 
 68.13  if the agency head posts the information on the agency Web site 
 68.14  in a highly recognizable manner that can be easily found and 
 68.15  understood by the employees to whom it might apply.  
 68.16     Upon being ordered to active duty, the employee must notify 
 68.17  the agency head of that order in a timely manner and must 
 68.18  provide to the agency head the name of and contact information 
 68.19  for the employee's designated attorney-in-fact under a power of 
 68.20  attorney.  Prior to the commencement of the employee's military 
 68.21  leave, the agency head must ensure the agency's receipt of that 
 68.22  information and immediately convey that information to the 
 68.23  commissioners of finance and employee relations, including any 
 68.24  subsequent change in that designation by the employee.  When 
 68.25  communicating with the employee during the person's military 
 68.26  leave, the agency head and the commissioners of finance and 
 68.27  employee relations must immediately provide a copy of the 
 68.28  communication to the employee's designated attorney-in-fact. 
 68.29  Those officials must also honor requests for information or 
 68.30  other appropriate directives from that designee on behalf of the 
 68.31  employee during the employee's military leave. 
 68.32     (g) The commissioners of employee relations and finance 
 68.33  shall adopt procedures required to implement this section.  The 
 68.34  procedures are exempt from chapter 14. 
 68.35     (g) (h) This section does not apply to a judge, legislator, 
 68.36  or constitutional officer of the executive branch. 
 69.1      [EFFECTIVE DATE.] This section is effective the day 
 69.2   following final enactment and applies to state employees serving 
 69.3   in active military service on or after May 29, 2003. 
 69.4      Sec. 2.  Minnesota Statutes 2004, section 190.16, is 
 69.5   amended by adding a subdivision to read: 
 69.6      Subd. 6a.  [RENTAL OF CAMP RIPLEY FACILITIES.] The adjutant 
 69.7   general or the adjutant general's designee may rent buildings or 
 69.8   other facilities at Camp Ripley to persons under terms and 
 69.9   conditions specified by the adjutant general or designee.  
 69.10  Subject to any prohibitions or restrictions in any agreement 
 69.11  between the United States and the state of Minnesota, proceeds 
 69.12  of rentals under this subdivision must be applied as follows: 
 69.13     (1) payment of increased utilities, maintenance, or other 
 69.14  costs directly attributable to the rental; 
 69.15     (2) other operating and maintenance or repair costs for the 
 69.16  building or facility being rented; and 
 69.17     (3) maintenance and improvement of buildings or other 
 69.18  facilities at Camp Ripley. 
 69.19  Rentals under this subdivision must be made under terms and 
 69.20  conditions that do not conflict with the use of Camp Ripley for 
 69.21  military purposes. 
 69.22     Sec. 3.  Minnesota Statutes 2004, section 192.19, is 
 69.23  amended to read: 
 69.24     192.19 [RETIRED MEMBERS MAY BE ORDERED TO ACTIVE DUTY.] 
 69.25     The commander-in-chief or the adjutant general may assign 
 69.26  officers, warrant officers, and enlisted personnel on the 
 69.27  retired list, with their consent, to temporary active service in 
 69.28  recruiting, upon courts-martial, courts of inquiry and boards, 
 69.29  to staff duty not involving service with troops, or in charge of 
 69.30  a military reservation left temporarily without officers.  Such 
 69.31  personnel while so assigned shall receive the full pay and 
 69.32  allowances of their grades at time of retirement, except that 
 69.33  the commander-in-chief or the adjutant general may authorize pay 
 69.34  and allowances in a higher grade when it is considered 
 69.35  appropriate based on special skills or experience of the person 
 69.36  being assigned to temporary active service. 
 70.1      Sec. 4.  Minnesota Statutes 2004, section 192.261, 
 70.2   subdivision 1, is amended to read: 
 70.3      Subdivision 1.  [LEAVE OF ABSENCE WITHOUT PAY.] Subject to 
 70.4   the conditions hereinafter prescribed, any officer or employee 
 70.5   of the state or of any political subdivision, municipal 
 70.6   corporation, or other public agency of the state who engages in 
 70.7   active service in time of war or other emergency declared by 
 70.8   proper authority in any of the military or naval forces of the 
 70.9   state or of the United States for which leave is not otherwise 
 70.10  allowed by law shall be entitled to leave of absence from the 
 70.11  officer's or employee's public office or employment without pay 
 70.12  during such service, with right of reinstatement as hereinafter 
 70.13  provided.  Such leave of absence without pay, whether heretofore 
 70.14  or hereafter, shall not extend beyond four years plus such 
 70.15  additional time in each case as such an officer or employee may 
 70.16  be required to serve pursuant to law.  This shall not be 
 70.17  construed to preclude the allowance of leave with pay for such 
 70.18  service to any person entitled thereto under section 43A.183, 
 70.19  192.26, or 471.975.  Nothing in this section contained shall 
 70.20  affect any of the provisions or application of section 352.27 
 70.21  nor of section 192.26 to 192.264, or any laws amendatory 
 70.22  thereof, insofar as such sections pertain to the state employees 
 70.23  retirement association or its members. 
 70.24     [EFFECTIVE DATE.] This section is effective the day 
 70.25  following final enactment and applies to state employees serving 
 70.26  in active military service on or after May 29, 2003. 
 70.27     Sec. 5.  Minnesota Statutes 2004, section 192.261, 
 70.28  subdivision 2, is amended to read: 
 70.29     Subd. 2.  [REINSTATEMENT.] Except as otherwise hereinafter 
 70.30  provided, upon the completion of such service such officer or 
 70.31  employee shall be reinstated in the public position, which was 
 70.32  held at the time of entry into such service, or a public 
 70.33  position of like seniority, status, and pay if such is available 
 70.34  at the same salary which the officer or employee would have 
 70.35  received if the leave had not been taken, upon the following 
 70.36  conditions:  (1) that the position has not been abolished or 
 71.1   that the term thereof, if limited, has not expired; (2) that the 
 71.2   officer or employee is not physically or mentally disabled from 
 71.3   performing the duties of such position; (3) that the officer or 
 71.4   employee makes written application for reinstatement to the 
 71.5   appointing authority within 90 days after termination of such 
 71.6   service, or 90 days after discharge from hospitalization or 
 71.7   medical treatment which immediately follows the termination of, 
 71.8   and results from, such service; provided such application shall 
 71.9   be made within one year and 90 days after termination of such 
 71.10  service notwithstanding such hospitalization or medical 
 71.11  treatment; (4) that the officer or employee submits an honorable 
 71.12  discharge or other form of release by proper authority 
 71.13  indicating that the officer's or employee's military or naval 
 71.14  service was satisfactory.  Upon such reinstatement the officer 
 71.15  or employee shall have the same rights with respect to accrued 
 71.16  and future seniority status, efficiency rating, vacation, sick 
 71.17  leave, and other benefits as if that officer or employee had 
 71.18  been actually employed during the time of such leave.  The 
 71.19  officer or employee reinstated under this section is entitled to 
 71.20  vacation and sick leave with pay as provided in any applicable 
 71.21  civil service rules, collective bargaining agreement, or 
 71.22  compensation plan, and accumulates vacation and sick leave from 
 71.23  the time the person enters active military service until the 
 71.24  date of reinstatement without regard to any otherwise applicable 
 71.25  limits on civil service rules limiting the number of days which 
 71.26  may be accumulated.  No officer or employee so reinstated shall 
 71.27  be removed or discharged within one year thereafter except for 
 71.28  cause, after notice and hearing; but this shall not operate to 
 71.29  extend a term of service limited by law. 
 71.30     [EFFECTIVE DATE.] This section is effective the day 
 71.31  following final enactment and applies to any public officer or 
 71.32  public employee serving in active military service on or after 
 71.33  September 11, 2001. 
 71.34     Sec. 6.  Minnesota Statutes 2004, section 192.501, 
 71.35  subdivision 2, is amended to read: 
 71.36     Subd. 2.  [TUITION AND TEXTBOOK REIMBURSEMENT GRANT 
 72.1   PROGRAM.] (a) The adjutant general shall establish a program to 
 72.2   provide tuition and textbook reimbursement grants to eligible 
 72.3   members of the Minnesota National Guard within the limitations 
 72.4   of this subdivision. 
 72.5      (b) Eligibility is limited to a member of the National 
 72.6   Guard who: 
 72.7      (1) is serving satisfactorily as defined by the adjutant 
 72.8   general; 
 72.9      (2) is attending a postsecondary educational institution, 
 72.10  as defined by section 136A.15, subdivision 6, including a 
 72.11  vocational or technical school operated or regulated by this 
 72.12  state or another state or province; and 
 72.13     (3) provides proof of satisfactory completion of 
 72.14  coursework, as defined by the adjutant general. 
 72.15     In addition, (c) Notwithstanding paragraph (b), clause (1), 
 72.16  for a person who: 
 72.17     (1) has satisfactorily completed the person's service 
 72.18  contract in the Minnesota National Guard or the portion of it 
 72.19  involving selective reserve status, for which any part of that 
 72.20  service was spent serving honorably in federal active service or 
 72.21  federally funded state active service since September 11, 2001, 
 72.22  the person's eligibility is extended for a period of two years, 
 72.23  plus an amount of time equal to the duration of that person's 
 72.24  active service, subject to the credit hours limit in paragraph 
 72.25  (h); or 
 72.26     (2) has served honorably in the Minnesota National Guard 
 72.27  and has been separated or discharged from that organization due 
 72.28  to a service-connected injury, disease, or disability, the 
 72.29  eligibility period is extended for eight years beyond the date 
 72.30  of separation, subject to the credit hours limit in paragraph 
 72.31  (h). 
 72.32     (d) Notwithstanding paragraph (b), clause (1), a member or 
 72.33  former member of the Minnesota National Guard who is eligible 
 72.34  for tuition and textbook reimbursement grant benefits under this 
 72.35  section and has eligibility remaining under the credit hours 
 72.36  limit in paragraph (h), and who has a service-connected 
 73.1   disability rating of 30 percent or more as certified by the 
 73.2   United States Department of Veterans Affairs, may transfer the 
 73.3   person's remaining eligibility to the person's spouse for use in 
 73.4   place of the member or former member, subject to the credit 
 73.5   hours limit in paragraph (h) for the member and spouse combined, 
 73.6   and subject to any time limits applicable to the member or 
 73.7   former member.  Notwithstanding any such transfer of grant 
 73.8   benefits by the member or former member to the person's spouse, 
 73.9   the person may revoke that transfer at anytime; however, any 
 73.10  such revocation does not restore the credit hours of eligibility 
 73.11  already used by the spouse. 
 73.12     (e) If a member of the Minnesota National Guard is killed 
 73.13  in the line of state active service or federally funded state 
 73.14  active service, as defined in section 190.05, subdivisions 5a 
 73.15  and 5b, the member's surviving spouse, and any surviving 
 73.16  dependent who has not yet reached 24 years of age, is eligible 
 73.17  for a tuition and textbook reimbursement grant, with each 
 73.18  eligible person independently subject to the credit hours limit 
 73.19  in paragraph (h). 
 73.20     (f) The adjutant general may, within the limitations of 
 73.21  this paragraph paragraphs (b) to (e) and other applicable laws, 
 73.22  determine additional eligibility criteria for the grant, and 
 73.23  must specify the criteria in department regulations and publish 
 73.24  changes as necessary. 
 73.25     (c) (g) The amount of a tuition and textbook reimbursement 
 73.26  grant must be specified on a schedule as determined and 
 73.27  published in department regulations by the adjutant general, but 
 73.28  is limited to a maximum of an amount equal to the greater of: 
 73.29     (1) up to 100 percent of the cost of tuition for lower 
 73.30  division programs in the College of Liberal Arts at the Twin 
 73.31  Cities campus of the University of Minnesota in the most recent 
 73.32  academic year; or 
 73.33     (2) up to 100 percent of the cost of tuition for the 
 73.34  program in which the person is enrolled at that Minnesota public 
 73.35  institution, or if that public institution is outside the state 
 73.36  of Minnesota, for the cost of a comparable program at the 
 74.1   University of Minnesota, except that in the case of a survivor 
 74.2   as defined in paragraph (b), the amount of the tuition and 
 74.3   textbook reimbursement grant for coursework satisfactorily 
 74.4   completed by the person is limited to 100 percent of the cost of 
 74.5   tuition for postsecondary courses at a Minnesota public 
 74.6   educational institution. 
 74.7      Paragraph (h) Paragraphs (b) to (f) notwithstanding, a 
 74.8   person is no longer eligible for a grant under this subdivision 
 74.9   once the person has received grants under this subdivision for 
 74.10  the equivalent of 208 quarter credits or 144 semester credits of 
 74.11  coursework. 
 74.12     (d) (i) Tuition and textbook reimbursement grants received 
 74.13  under this subdivision may not be considered by the Minnesota 
 74.14  Higher Education Services Office or by any other state board, 
 74.15  commission, or entity in determining a person's eligibility for 
 74.16  a scholarship or grant-in-aid under sections 136A.095 to 
 74.17  136A.1311. 
 74.18     (e) (j) If a member fails to complete a term of enlistment 
 74.19  during which a tuition and textbook reimbursement grant was 
 74.20  paid, the adjutant general may seek to recoup a prorated amount 
 74.21  as determined by the adjutant general.  However, this authority 
 74.22  does not apply to a person whose separation from the Minnesota 
 74.23  National Guard is due to a medical condition or financial 
 74.24  hardship. 
 74.25     (k) For purposes of this section, the terms "active 
 74.26  service," "state active service," "federally funded state active 
 74.27  service," and "federal active service" have the meanings given 
 74.28  in section 190.05, subdivisions 5 to 5c, respectively, except 
 74.29  that for purposes of paragraph (c), clause (1), these terms 
 74.30  exclude service performed exclusively for purposes of: 
 74.31     (1) basic combat training, advanced individual training, 
 74.32  annual training, and periodic inactive duty training; 
 74.33     (2) special training periodically made available to reserve 
 74.34  members; 
 74.35     (3) service performed in accordance with section 190.08, 
 74.36  subdivision 3; and 
 75.1      (4) service performed as part of the active guard/reserve 
 75.2   program pursuant to United States Code, title 32, section 
 75.3   502(f), or other applicable authority. 
 75.4      [EFFECTIVE DATE.] This section is effective the day 
 75.5   following final enactment and applies to persons who have served 
 75.6   in the Minnesota National Guard at anytime since September 11, 
 75.7   2001, and if the person has died in the line of service, to the 
 75.8   person's surviving spouse and dependents as well. 
 75.9      Sec. 7.  Minnesota Statutes 2004, section 193.29, 
 75.10  subdivision 3, is amended to read: 
 75.11     Subd. 3.  [JOINT BOARDS.] In all cases in which more than 
 75.12  one company or other unit of the military forces shall occupy 
 75.13  the same armory, the armory board shall consist of 
 75.14  officers military personnel assigned to the units or 
 75.15  organizations quartered therein.  The adjutant general shall 
 75.16  designate by order from time to time the representatives of each 
 75.17  unit quartered therein to comprise the armory board for each 
 75.18  armory.  In the discretion of the adjutant general, the 
 75.19  membership of the board may be comprised of officers, warrant 
 75.20  officers, and enlisted personnel and may be changed from time to 
 75.21  time so as to give the several organizations quartered therein 
 75.22  proper representation on the board. 
 75.23     Sec. 8.  Minnesota Statutes 2004, section 193.30, is 
 75.24  amended to read: 
 75.25     193.30 [COMMANDING OFFICERS MANAGEMENT OF ARMORY BOARD.] 
 75.26     The senior officer member on each armory board shall be the 
 75.27  chair, and the junior officer member thereof shall be the 
 75.28  recorder.  A record of the proceedings of the board shall be 
 75.29  kept, and all motions offered, whether seconded or not, shall be 
 75.30  put to a vote and the result recorded.  In the case of a tie 
 75.31  vote the adjutant general, upon the request of any member, shall 
 75.32  decide.  The governor may make and alter rules for the 
 75.33  government of armory boards, officers, and other persons having 
 75.34  charge of armories, arsenals, or other military property of the 
 75.35  state.  
 75.36     Sec. 9.  Minnesota Statutes 2004, section 193.31, is 
 76.1   amended to read: 
 76.2      193.31 [SENIOR OFFICER TO CONTROL OF DRILL HALL.] 
 76.3      The senior officer member of any company or other 
 76.4   organization assembling at an armory for drill or instruction 
 76.5   shall have control of the drill hall or other portion of the 
 76.6   premises used therefor during such occupancy, subject to the 
 76.7   rules prescribed for its use and the orders of that officer's 
 76.8   member's superior.  Any person who intrudes contrary to orders, 
 76.9   or who interrupts, molests, or insults any troops so assembled, 
 76.10  or who refuses to leave the premises when properly requested so 
 76.11  to do, shall be guilty of a misdemeanor.  Nothing in this 
 76.12  section shall prevent reasonable inspection of the premises by 
 76.13  the proper municipal officer, or by the lessor thereof in 
 76.14  accordance with the terms of the lease. 
 76.15     Sec. 10.  Minnesota Statutes 2004, section 471.975, is 
 76.16  amended to read: 
 76.17     471.975 [MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.] 
 76.18     (a) Except as provided in paragraph (b), a statutory or 
 76.19  home rule charter city, county, town, or other political 
 76.20  subdivision may pay to each eligible member of the National 
 76.21  Guard or other reserve component of the armed forces of the 
 76.22  United States an amount equal to the difference between the 
 76.23  member's basic active duty military salary and the salary the 
 76.24  member would be paid as an active political subdivision 
 76.25  employee, including any adjustments the member would have 
 76.26  received if not on leave of absence.  This payment may be made 
 76.27  only to a person whose basic active duty military salary is less 
 76.28  than the salary the person would be paid as an active political 
 76.29  subdivision employee.  Back pay authorized by this section may 
 76.30  be paid in a lump sum.  Payment under this section must not 
 76.31  extend beyond four years from the date the employee reported for 
 76.32  active service, plus any additional time the employee may be 
 76.33  legally required to serve. 
 76.34     (b) Subject to the limits under paragraph (g), each school 
 76.35  district shall pay to each eligible member of the National Guard 
 76.36  or other reserve component of the armed forces of the United 
 77.1   States an amount equal to the difference between the member's 
 77.2   basic active duty military salary and the salary the member 
 77.3   would be paid as an active school district employee, including 
 77.4   any adjustments the member would have received if not on leave 
 77.5   of absence.  The pay differential must be based on a comparison 
 77.6   between the member's daily rate of active duty pay, calculated 
 77.7   by dividing the member's military monthly salary by the number 
 77.8   of paid days in the month, and the member's daily rate of pay 
 77.9   for the member's school district salary, calculated by dividing 
 77.10  the member's total school district salary by the number of 
 77.11  contract days.  The member's salary as a school district 
 77.12  employee must include the member's basic salary and any 
 77.13  additional salary the member earns from the school district for 
 77.14  cocurricular activities.  The differential payment under this 
 77.15  paragraph must be the difference between the daily rates of 
 77.16  military pay times the number of school district contract days 
 77.17  the member misses because of military active duty.  This payment 
 77.18  may be made only to a person whose basic active duty military 
 77.19  salary is less than the salary the person would be paid as an 
 77.20  active school district employee.  Payments may be made at the 
 77.21  intervals at which the member received pay as a school district 
 77.22  employee.  Payment under this section must not extend beyond 
 77.23  four years from the date the employee reported for active 
 77.24  service, plus any additional time the employee may be legally 
 77.25  required to serve. 
 77.26     (c) An eligible member of the reserve components of the 
 77.27  armed forces of the United States is a reservist or National 
 77.28  Guard member who was an employee of a political subdivision at 
 77.29  the time the member reported for active service on or after May 
 77.30  29, 2003, or who is on active service on May 29, 2003. 
 77.31     (d) Notwithstanding other obligations under law and Except 
 77.32  as provided in paragraph (e) and elsewhere in Minnesota 
 77.33  Statutes, a statutory or home rule charter city, county, town, 
 77.34  or other political subdivision has total discretion regarding 
 77.35  employee benefit continuation for a member who reports for 
 77.36  active service and the terms and conditions of any benefit. 
 78.1      (e) A school district must continue the employee's 
 78.2   enrollment in health and dental coverage, and the employer 
 78.3   contribution toward that coverage, until the employee is covered 
 78.4   by health and dental coverage provided by the armed forces.  If 
 78.5   the employee had elected dependent coverage for health or dental 
 78.6   coverage as of the time that the employee reported for active 
 78.7   service, a school district must offer the employee the option to 
 78.8   continue the dependent coverage at the employee's own expense.  
 78.9   A school district must permit the employee to continue 
 78.10  participating in any pretax account in which the employee 
 78.11  participated when the employee reported for active service, to 
 78.12  the extent of employee pay available for that purpose. 
 78.13     (f) For purposes of this section, "active service" has the 
 78.14  meaning given in section 190.05, subdivision 5, but excludes 
 78.15  service performed exclusively for purposes of: 
 78.16     (1) basic combat training, advanced individual training, 
 78.17  annual training, and periodic inactive duty training; 
 78.18     (2) special training periodically made available to reserve 
 78.19  members; and 
 78.20     (3) service performed in accordance with section 190.08, 
 78.21  subdivision 3. 
 78.22     (g) A school district making payments under paragraph (b) 
 78.23  shall place a sum equal to any difference between the amount of 
 78.24  salary that would have been paid to the employee who is 
 78.25  receiving the payments and the amount of salary being paid to 
 78.26  substitutes for that employee into a special fund that must be 
 78.27  used to pay or partially pay the deployed employee's payments 
 78.28  under paragraph (b).  A school district is required to pay only 
 78.29  this amount to the deployed school district employee. 
 78.30     [EFFECTIVE DATE.] This section is effective the day 
 78.31  following final enactment and applies to any public officer or 
 78.32  public employee serving in active military service on or after 
 78.33  September 11, 2001. 
 78.34                             ARTICLE 7 
 78.35                              VETERANS 
 78.36     Section 1.  [196.28] [HEPATITIS C EDUCATIONAL MATERIALS.] 
 79.1      The commissioner of veterans affairs may develop and make 
 79.2   available to physicians, other health care providers, veterans, 
 79.3   and other persons at high risk for hepatitis C (HCV) educational 
 79.4   materials, in written and electronic forms, on the diagnosis, 
 79.5   treatment, and prevention of HCV.  The educational materials may 
 79.6   include recommendations of the federal Centers for Disease 
 79.7   Control and Prevention and any other person or entity having 
 79.8   knowledge on HCV, including the American Liver Foundation.  The 
 79.9   materials shall be written in terms understandable by members of 
 79.10  the general public. 
 79.11     Sec. 2.  Minnesota Statutes 2004, section 197.608, 
 79.12  subdivision 5, is amended to read: 
 79.13     Subd. 5.  [QUALIFYING USES.] The commissioner shall consult 
 79.14  with the Minnesota Association of County Veterans Service 
 79.15  Officers in developing a list of qualifying uses for grants 
 79.16  awarded under this program. The commissioner is authorized to 
 79.17  use any unexpended funding for this program to provide training 
 79.18  and education for county veterans service officers. 
 79.19     [EFFECTIVE DATE.] This section is effective the day 
 79.20  following final enactment. 
 79.21     Sec. 3.  [197.80] [LIMITATION ON CONDEMNATION.] 
 79.22     No county in the metropolitan area may acquire by eminent 
 79.23  domain property owned or leased and operated by a nonprofit 
 79.24  organization and primarily used to provide recreational 
 79.25  opportunities to disabled veterans and their families. 
 79.26     [EFFECTIVE DATE.] This section is effective the day 
 79.27  following final enactment. 
 79.28     Sec. 4.  Minnesota Statutes 2004, section 394.25, is 
 79.29  amended by adding a subdivision to read: 
 79.30     Subd. 3d.  [NONPROFIT RECREATIONAL PROPERTY FOR USE BY 
 79.31  DISABLED VETERANS.] Property located in a county in the 
 79.32  metropolitan area with a population of less than 500,000, and 
 79.33  owned or leased and operated by a nonprofit organization, and 
 79.34  primarily used to provide recreational opportunities for 
 79.35  disabled veterans and their families is a legal conforming use 
 79.36  for purposes of zoning controls.  Improvements to such property 
 80.1   shall be allowed under the terms of a planned unit development 
 80.2   permit.  
 80.3      [EFFECTIVE DATE.] This section is effective the day 
 80.4   following final enactment. 
 80.5      Sec. 5.  Minnesota Statutes 2004, section 462.357, is 
 80.6   amended by adding a subdivision to read: 
 80.7      Subd. 1g.  [NONPROFIT RECREATIONAL PROPERTY FOR USE BY 
 80.8   DISABLED VETERANS.] Property located in a county in the 
 80.9   metropolitan area with a population of less than 500,000, and 
 80.10  owned or leased and operated by a nonprofit organization, and 
 80.11  primarily used to provide recreational opportunities for 
 80.12  disabled veterans and their families is a legal conforming use 
 80.13  for purposes of zoning controls.  Improvements to such property 
 80.14  shall be allowed under the terms of a planned unit development 
 80.15  permit.  
 80.16     [EFFECTIVE DATE.] This section is effective the day 
 80.17  following final enactment. 
 80.18     Sec. 6.  Minnesota Statutes 2004, section 473.147, is 
 80.19  amended by adding a subdivision to read: 
 80.20     Subd. 1a.  [DISABLED VETERANS REST CAMP EXCLUDED FROM 
 80.21  REGIONAL RECREATIONAL OPEN SPACE SYSTEM.] Property occupied by 
 80.22  the Disabled Veterans Rest Camp on Big Marine Lake in Washington 
 80.23  County is excluded from the regional recreational open space 
 80.24  system. 
 80.25     [EFFECTIVE DATE.] This section is effective the day 
 80.26  following final enactment. 
 80.27     Sec. 7.  Laws 2000, chapter 461, article 4, section 4, as 
 80.28  amended by Laws 2003, First Special Session chapter 12, article 
 80.29  6, section 3, and Laws 2004, chapter 267, article 17, section 7, 
 80.30  is amended to read: 
 80.31     Sec. 4.  [EFFECTIVE DATE; SUNSET REPEALER.] 
 80.32     (a) Sections 1, 2, and 3 are effective on the day following 
 80.33  final enactment. 
 80.34     (b) Sections 1, 2, and 3, are repealed on May 16, 2006. 
 80.35     [EFFECTIVE DATE.] This section is effective the day 
 80.36  following final enactment. 
 81.1      Sec. 8.  [RESTRICTIONS LIMITED.] 
 81.2      No county may take any action to encumber or restrict 
 81.3   ingress or egress below levels permissible on January 1, 2005, 
 81.4   to property located in a county in the metropolitan area with a 
 81.5   population of less than 500,000, and owned or leased and 
 81.6   operated by a nonprofit organization, and primarily used to 
 81.7   provide recreational opportunities to disabled veterans and 
 81.8   their families. 
 81.9      [EFFECTIVE DATE.] This section is effective the day 
 81.10  following final enactment. 
 81.11     Sec. 9.  [DISABLED VETERANS CAMP REQUIREMENTS.] 
 81.12     The Disabled Veterans Rest Camp on Big Marine Lake in 
 81.13  Washington County ("The Camp") must develop and promote camp 
 81.14  features and amenities for veterans who are disabled or have 
 81.15  limited physical capabilities.  The camp shall modify its 
 81.16  operating policies and procedures to include provisions for the 
 81.17  regular rotation of the use of campsites, cabins, and parking 
 81.18  spots for travel trailers, limiting the time that any one 
 81.19  veteran can use the cabin and campsites especially when there is 
 81.20  a waiting list of veterans with service-connected disabilities. 
 81.21     [EFFECTIVE DATE.] This section is effective the day 
 81.22  following final enactment. 
 81.23     Sec. 10.  [PLAQUE HONORING VETERANS OF THE PERSIAN GULF 
 81.24  WAR.] 
 81.25     A memorial plaque may be placed in the court of honor on 
 81.26  the capitol grounds to recognize the valiant service to our 
 81.27  nation by the thousands of brave men and women who served 
 81.28  honorably as members of the United States Armed Forces during 
 81.29  the Persian Gulf War.  The plaque must be furnished by a person 
 81.30  or organization other than the Department of Veterans Affairs 
 81.31  and must be approved by the commissioner of veterans affairs and 
 81.32  the Capitol Area Architectural and Planning Board. 
 81.33     [EFFECTIVE DATE.] This section is effective the day 
 81.34  following final enactment. 
 81.35     Sec. 11.  [REPEALER.] 
 81.36     Minnesota Statutes 2004, sections 43A.11, subdivision 2; 
 82.1   and 197.455, subdivision 3, are repealed. 
 82.2                              ARTICLE 8 
 82.3                    ELECTIONS AND CAMPAIGN FINANCE
 82.4      Section 1.  Minnesota Statutes 2004, section 3.02, is 
 82.5   amended to read: 
 82.6      3.02 [EVIDENCE OF MEMBERSHIP.] 
 82.7      For all purposes of organization of either house of the 
 82.8   legislature, a certificate of election to it, duly executed by 
 82.9   the secretary of state, is prima facie evidence of the right to 
 82.10  membership of the person named in it.  The secretary of state 
 82.11  shall issue the certificate of election in duplicate and shall 
 82.12  file and retain one copy for the official records of the state 
 82.13  and present one copy to each legislator. 
 82.14     Sec. 2.  Minnesota Statutes 2004, section 10A.01, 
 82.15  subdivision 5, is amended to read: 
 82.16     Subd. 5.  [ASSOCIATED BUSINESS.] "Associated business" 
 82.17  means an association, corporation, partnership, limited 
 82.18  liability company, limited liability partnership, or other 
 82.19  organized legal entity from which the individual receives 
 82.20  compensation in excess of $50, except for actual and reasonable 
 82.21  expenses, in any month as a director, officer, owner, member, 
 82.22  partner, employer or employee, or whose securities the 
 82.23  individual holds worth $2,500 or more at fair market value. 
 82.24     Sec. 3.  Minnesota Statutes 2004, section 10A.01, 
 82.25  subdivision 21, is amended to read: 
 82.26     Subd. 21.  [LOBBYIST.] (a) "Lobbyist" means an individual: 
 82.27     (1) engaged for pay or other consideration of more than 
 82.28  $3,000 from all sources in any year for the purpose of 
 82.29  attempting to influence legislative or administrative action, or 
 82.30  the official action of a metropolitan governmental unit, by 
 82.31  communicating or urging others to communicate with public or 
 82.32  local officials; or 
 82.33     (2) who spends more than $250, not including the 
 82.34  individual's own traveling expenses and membership dues, in any 
 82.35  year for the purpose of attempting to influence legislative or 
 82.36  administrative action, or the official action of a metropolitan 
 83.1   governmental unit, by communicating or urging others to 
 83.2   communicate with public or local officials. 
 83.3      (b) "Lobbyist" does not include: 
 83.4      (1) a public official; 
 83.5      (2) an employee of the state, including an employee of any 
 83.6   of the public higher education systems; 
 83.7      (3) an elected local official; 
 83.8      (4) a nonelected local official or an employee of a 
 83.9   political subdivision acting in an official capacity, unless the 
 83.10  nonelected official or employee of a political subdivision 
 83.11  spends more than 50 ten hours in any month attempting to 
 83.12  influence legislative or administrative action, or the official 
 83.13  action of a metropolitan governmental unit other than the 
 83.14  political subdivision employing the official or employee, by 
 83.15  communicating or urging others to communicate with public or 
 83.16  local officials, including time spent monitoring legislative or 
 83.17  administrative action, or the official action of a metropolitan 
 83.18  governmental unit, and related research, analysis, and 
 83.19  compilation and dissemination of information relating to 
 83.20  legislative or administrative policy in this state, or to the 
 83.21  policies of metropolitan governmental units, but not including 
 83.22  travel time related to these actions; 
 83.23     (5) a party or the party's representative appearing in a 
 83.24  proceeding before a state board, commission, or agency of the 
 83.25  executive branch unless the board, commission, or agency is 
 83.26  taking administrative action; 
 83.27     (6) an individual while engaged in selling goods or 
 83.28  services to be paid for by public funds; 
 83.29     (7) a news medium or its employees or agents while engaged 
 83.30  in the publishing or broadcasting of news items, editorial 
 83.31  comments, or paid advertisements which directly or indirectly 
 83.32  urge official action; 
 83.33     (8) a paid expert witness whose testimony is requested by 
 83.34  the body before which the witness is appearing, but only to the 
 83.35  extent of preparing or delivering testimony; or 
 83.36     (9) a party or the party's representative appearing to 
 84.1   present a claim to the legislature and communicating to 
 84.2   legislators only by the filing of a claim form and supporting 
 84.3   documents and by appearing at public hearings on the claim. 
 84.4      (c) An individual who volunteers personal time to work 
 84.5   without pay or other consideration on a lobbying campaign, and 
 84.6   who does not spend more than the limit in paragraph (a), clause 
 84.7   (2), need not register as a lobbyist. 
 84.8      (d) An individual who provides administrative support to a 
 84.9   lobbyist and whose salary and administrative expenses 
 84.10  attributable to lobbying activities are reported as lobbying 
 84.11  expenses by the lobbyist, but who does not communicate or urge 
 84.12  others to communicate with public or local officials, need not 
 84.13  register as a lobbyist. 
 84.14     Sec. 4.  Minnesota Statutes 2004, section 10A.01, 
 84.15  subdivision 23, is amended to read: 
 84.16     Subd. 23.  [MAJOR POLITICAL PARTY.] "Major political party" 
 84.17  means: 
 84.18     (1) a major political party as defined in section 200.02, 
 84.19  subdivision 7.; or 
 84.20     (2) a political party that maintains a party organization 
 84.21  in the state, political subdivision, or precinct in question and 
 84.22  that has presented at least 45 candidates for election to the 
 84.23  office of state representative, 23 candidates for election to 
 84.24  the office of state senator, four candidates for the office of 
 84.25  representative in Congress, and one candidate for each of the 
 84.26  following offices:  governor and lieutenant governor, attorney 
 84.27  general, secretary of state, and state auditor at the last 
 84.28  preceding state general election for those offices.  A political 
 84.29  party that presents the required candidates at a state general 
 84.30  election described in this clause becomes a major political 
 84.31  party as of January 1 following that election and retains its 
 84.32  major party status notwithstanding that the party fails to 
 84.33  present the required candidates at the following state general 
 84.34  election.  A major political party that fails to present the 
 84.35  required candidates at the following state general election 
 84.36  loses major party status as of December 31 following the most 
 85.1   recent state general election. 
 85.2      Sec. 5.  Minnesota Statutes 2004, section 10A.01, 
 85.3   subdivision 26, is amended to read: 
 85.4      Subd. 26.  [NONCAMPAIGN DISBURSEMENT.] "Noncampaign 
 85.5   disbursement" means a purchase or payment of money or anything 
 85.6   of value made, or an advance of credit incurred, or a donation 
 85.7   in kind received, by a principal campaign committee for any of 
 85.8   the following purposes: 
 85.9      (1) payment for accounting and legal services; 
 85.10     (2) return of a contribution to the source; 
 85.11     (3) repayment of a loan made to the principal campaign 
 85.12  committee by that committee; 
 85.13     (4) return of a public subsidy; 
 85.14     (5) payment for food, beverages, entertainment, and 
 85.15  facility rental for a fund-raising event; 
 85.16     (6) services for a constituent by a member of the 
 85.17  legislature or a constitutional officer in the executive branch, 
 85.18  including the costs of preparing and distributing a suggestion 
 85.19  or idea solicitation to constituents, performed from the 
 85.20  beginning of the term of office to adjournment sine die of the 
 85.21  legislature in the election year for the office held, and half 
 85.22  the cost of services for a constituent by a member of the 
 85.23  legislature or a constitutional officer in the executive branch 
 85.24  performed from adjournment sine die to 60 days after adjournment 
 85.25  sine die; 
 85.26     (7) payment for food and beverages provided to campaign 
 85.27  volunteers while they are engaged in campaign activities; 
 85.28     (8) payment of expenses incurred by elected or appointed 
 85.29  leaders of a legislative caucus in carrying out their leadership 
 85.30  responsibilities; 
 85.31     (9) payment by a principal campaign committee of the 
 85.32  candidate's expenses for serving in public office, other than 
 85.33  for personal uses; 
 85.34     (10) costs of child care for the candidate's children when 
 85.35  campaigning; 
 85.36     (11) fees paid to attend a campaign school; 
 86.1      (12) costs of a postelection party during the election year 
 86.2   when a candidate's name will no longer appear on a ballot or the 
 86.3   general election is concluded, whichever occurs first; 
 86.4      (13) interest on loans paid by a principal campaign 
 86.5   committee on outstanding loans; 
 86.6      (14) filing fees; 
 86.7      (15) post-general election thank-you notes or 
 86.8   advertisements in the news media; 
 86.9      (16) the cost of campaign material purchased to replace 
 86.10  defective campaign material, if the defective material is 
 86.11  destroyed without being used; 
 86.12     (17) contributions to a party unit; and 
 86.13     (18) other purchases or payments specified in board rules 
 86.14  or advisory opinions as being for any purpose other than to 
 86.15  influence the nomination or election of a candidate or to 
 86.16  promote or defeat a ballot question; and 
 86.17     (19) payments for attending a state or national convention 
 86.18  and payments for funeral gifts or memorials. 
 86.19     The board must determine whether an activity involves a 
 86.20  noncampaign disbursement within the meaning of this subdivision. 
 86.21     A noncampaign disbursement is considered to be made in the 
 86.22  year in which the candidate made the purchase of goods or 
 86.23  services or incurred an obligation to pay for goods or services. 
 86.24     [EFFECTIVE DATE.] This section is effective retroactive to 
 86.25  February 28, 1978. 
 86.26     Sec. 6.  Minnesota Statutes 2004, section 10A.025, is 
 86.27  amended by adding a subdivision to read: 
 86.28     Subd. 1a.  [ELECTRONIC FILING.] A report or statement 
 86.29  required to be filed under this chapter may be filed 
 86.30  electronically.  The board shall adopt rules to regulate 
 86.31  electronic filing and to ensure that the electronic filing 
 86.32  process is secure. 
 86.33     Sec. 7.  Minnesota Statutes 2004, section 10A.071, 
 86.34  subdivision 3, is amended to read: 
 86.35     Subd. 3.  [EXCEPTIONS.] (a) The prohibitions in this 
 86.36  section do not apply if the gift is: 
 87.1      (1) a contribution as defined in section 10A.01, 
 87.2   subdivision 11; 
 87.3      (2) services to assist an official in the performance of 
 87.4   official duties, including but not limited to providing advice, 
 87.5   consultation, information, and communication in connection with 
 87.6   legislation, and services to constituents; 
 87.7      (3) services of insignificant monetary value; 
 87.8      (4) a plaque or similar memento recognizing individual 
 87.9   services in a field of specialty or to a charitable cause; 
 87.10     (5) a trinket or memento of insignificant value; 
 87.11     (6) informational material of unexceptional value; or 
 87.12     (7) food or a beverage given at a reception, meal, or 
 87.13  meeting away from the recipient's place of work by an 
 87.14  organization before whom the recipient appears to make a speech 
 87.15  or answer questions as part of a program; or 
 87.16     (8) food or a beverage of a nominal value given at a 
 87.17  reception to which all relevant members of the legislature have 
 87.18  been invited. 
 87.19     (b) The prohibitions in this section do not apply if the 
 87.20  gift is given: 
 87.21     (1) because of the recipient's membership in a group, a 
 87.22  majority of whose members are not officials, and an equivalent 
 87.23  gift is given to the other members of the group; or 
 87.24     (2) by a lobbyist or principal who is a member of the 
 87.25  family of the recipient, unless the gift is given on behalf of 
 87.26  someone who is not a member of that family. 
 87.27     Sec. 8.  Minnesota Statutes 2004, section 10A.08, is 
 87.28  amended to read: 
 87.29     10A.08 [REPRESENTATION DISCLOSURE.] 
 87.30     A public official who represents a client for a fee before 
 87.31  an individual, board, commission, or agency that has rulemaking 
 87.32  authority in a hearing conducted under chapter 14, must disclose 
 87.33  the official's participation in the action to the board within 
 87.34  14 days after the appearance.  The board must send a notice by 
 87.35  certified mail to any public official who fails to disclose the 
 87.36  participation within 14 days after the appearance.  If the 
 88.1   public official fails to disclose the participation within ten 
 88.2   business days after the notice was sent, the board may impose a 
 88.3   late filing fee of $5 per day, not to exceed $100, starting on 
 88.4   the 11th day after the notice was sent.  The board must send an 
 88.5   additional notice by certified mail to a public official who 
 88.6   fails to disclose the participation within 14 days after the 
 88.7   first notice was sent by the board that the public official may 
 88.8   be subject to a civil penalty for failure to disclose the 
 88.9   participation.  A public official who fails to disclose the 
 88.10  participation within seven days after the second notice was sent 
 88.11  by the board is subject to a civil penalty imposed by the board 
 88.12  of up to $1,000. 
 88.13     Sec. 9.  Minnesota Statutes 2004, section 10A.20, 
 88.14  subdivision 2, is amended to read: 
 88.15     Subd. 2.  [TIME FOR FILING.] (a) The reports must be filed 
 88.16  with the board on or before January 31 of each year and 
 88.17  additional reports must be filed as required and in accordance 
 88.18  with paragraphs (b) and (c).  
 88.19     (b) In each year in which the name of the candidate is on 
 88.20  the ballot, the report of the principal campaign committee must 
 88.21  be filed 15 days before a primary and ten days before a general 
 88.22  election, seven days before a special primary and a special 
 88.23  election, and ten days after a special election cycle, except as 
 88.24  otherwise provided by subdivision 3b.  
 88.25     (c) In each general election year, a political committee, 
 88.26  political fund, or party unit must file reports 15 days before a 
 88.27  primary and ten days before a general election.  
 88.28     Sec. 10.  Minnesota Statutes 2004, section 10A.20, is 
 88.29  amended by adding a subdivision to read: 
 88.30     Subd. 3b.  [REPORT BY CANDIDATE WITHOUT PRIMARY 
 88.31  OPPOSITION.] Notwithstanding the provisions of subdivision 3, if 
 88.32  a candidate does not have an opponent at a primary or special 
 88.33  primary, the candidate's principal campaign committee must file, 
 88.34  15 days before a primary and seven days before a special 
 88.35  primary, a report containing only the following: 
 88.36     (1) the amount of liquid assets on hand at the beginning of 
 89.1   the reporting period; 
 89.2      (2) the sum of contributions to the principal campaign 
 89.3   committee during the reporting period; 
 89.4      (3) the sum of all expenditures made by or on behalf of the 
 89.5   principal campaign committee during the reporting period; and 
 89.6      (4) the information required by subdivision 3, paragraph 
 89.7   (b). 
 89.8      Sec. 11.  Minnesota Statutes 2004, section 10A.20, 
 89.9   subdivision 5, is amended to read: 
 89.10     Subd. 5.  [PREELECTION REPORTS.] In a statewide election 
 89.11  any loan, contribution, or contributions from any one source 
 89.12  totaling $2,000 or more, or in any judicial district or 
 89.13  legislative election totaling more than $400, received between 
 89.14  the last day covered in the last report before an election and 
 89.15  the election must be reported to the board in one of the 
 89.16  following ways: 
 89.17     (1) in person within 48 hours after its receipt; 
 89.18     (2) by telegram or mailgram within 48 hours after its 
 89.19  receipt; or 
 89.20     (3) by certified mail sent within 48 hours after its 
 89.21  receipt; or 
 89.22     (4) by electronic means sent within 48 hours after its 
 89.23  receipt. 
 89.24     These loans and contributions must also be reported in the 
 89.25  next required report. 
 89.26     The 48-hour notice requirement does not apply with respect 
 89.27  to a primary in which the statewide or legislative candidate is 
 89.28  unopposed. 
 89.29     Sec. 12.  Minnesota Statutes 2004, section 10A.27, 
 89.30  subdivision 1, is amended to read: 
 89.31     Subdivision 1.  [CONTRIBUTION LIMITS.] (a) Except as 
 89.32  provided in subdivision 2, a candidate must not permit the 
 89.33  candidate's principal campaign committee to accept aggregate 
 89.34  contributions made or delivered by any individual, political 
 89.35  committee, or political fund in excess of the following: 
 89.36     (1) to candidates for governor and lieutenant governor 
 90.1   running together, $2,000 in an election year for the office 
 90.2   sought and $500 in other years; 
 90.3      (2) to a candidate for attorney general, $1,000 in an 
 90.4   election year for the office sought and $200 in other years; 
 90.5      (3) to a candidate for the office of secretary of state or 
 90.6   state auditor, $500 in an election year for the office sought 
 90.7   and $100 in other years; 
 90.8      (4) to a candidate for state senator, $500 in an election 
 90.9   year for the office sought and $100 in other years; and 
 90.10     (5) to a candidate for state representative, $500 in an 
 90.11  election year for the office sought and $100 in the other year. 
 90.12     (b) The following deliveries are not subject to the 
 90.13  bundling limitation in this subdivision: 
 90.14     (1) delivery of contributions collected by a member of the 
 90.15  candidate's principal campaign committee, such as a block worker 
 90.16  or a volunteer who hosts a fund-raising event, to the 
 90.17  committee's treasurer; and 
 90.18     (2) a delivery made by an individual on behalf of the 
 90.19  individual's spouse.  
 90.20     (c) A lobbyist, political committee, political party unit, 
 90.21  or political fund must not make a contribution a candidate is 
 90.22  prohibited from accepting. 
 90.23     Sec. 13.  Minnesota Statutes 2004, section 10A.28, 
 90.24  subdivision 2, is amended to read: 
 90.25     Subd. 2.  [EXCEEDING CONTRIBUTION LIMITS.] A political 
 90.26  committee, political fund, or principal campaign committee that 
 90.27  makes a contribution, or a candidate who permits the candidate's 
 90.28  principal campaign committee to accept contributions, in excess 
 90.29  of the limits imposed by section 10A.27 is subject to a civil 
 90.30  penalty of up to four times the amount by which the contribution 
 90.31  exceeded the limits. The following are subject to a civil 
 90.32  penalty of up to four times the amount by which a contribution 
 90.33  exceeds the applicable limits: 
 90.34     (1) a lobbyist, political committee, or political fund that 
 90.35  makes a contribution in excess of the limits imposed by section 
 90.36  10A.27, subdivisions 1 and 8; 
 91.1      (2) a principal campaign committee that makes a 
 91.2   contribution in excess of the limits imposed by section 10A.27, 
 91.3   subdivision 2; 
 91.4      (3) a political party unit that makes a contribution in 
 91.5   excess of the limits imposed by section 10A.27, subdivisions 2 
 91.6   and 8; or 
 91.7      (4) a candidate who permits the candidate's principal 
 91.8   campaign committee to accept contributions in excess of the 
 91.9   limits imposed by section 10A.27. 
 91.10     Sec. 14.  Minnesota Statutes 2004, section 10A.31, 
 91.11  subdivision 1, is amended to read: 
 91.12     Subdivision 1.  [DESIGNATION.] An individual resident of 
 91.13  this state who files an income tax return or a renter and 
 91.14  homeowner property tax refund return with the commissioner of 
 91.15  revenue may designate on their original return that $5 be paid 
 91.16  from the general fund of the state $1 to $25, or $1 to $50 if 
 91.17  the return is filed jointly, be added to the tax or deducted 
 91.18  from the refund that would otherwise be payable by or to the 
 91.19  individual and paid into the state elections campaign fund.  If 
 91.20  a husband and wife file a joint return, each spouse may 
 91.21  designate that $5 be paid.  No individual is allowed to 
 91.22  designate $5 more than once in any year.  The taxpayer may 
 91.23  designate that the amount be paid into the account of a 
 91.24  political party or into the general account.  Designations made 
 91.25  under this section are not eligible for refund under section 
 91.26  290.06, subdivision 23.  
 91.27     [EFFECTIVE DATE.] This section is effective beginning with 
 91.28  designations made on income tax returns filed for tax years 
 91.29  beginning after December 31, 2004, and property tax refund 
 91.30  returns based on property taxes payable in 2006 or rent 
 91.31  constituting property taxes paid in 2005. 
 91.32     Sec. 15.  Minnesota Statutes 2004, section 10A.31, 
 91.33  subdivision 3, is amended to read: 
 91.34     Subd. 3.  [FORM.] The commissioner of revenue must provide 
 91.35  on the first page of the income tax form and the renter and 
 91.36  homeowner property tax refund return a space for the individual 
 92.1   to indicate a wish to pay $5 ($10 $1 to $25, or $1 to $50 if 
 92.2   filing a joint return) from the general fund of the state, to 
 92.3   finance election campaigns.  The form must also contain language 
 92.4   prepared by the commissioner that permits the individual to 
 92.5   direct the state to pay the $5 (or $10 if filing a joint return) 
 92.6   designation to:  (1) one of the major political parties; (2) any 
 92.7   minor political party that qualifies under subdivision 3a; or 
 92.8   (3) all qualifying candidates as provided by subdivision 7.  The 
 92.9   renter and homeowner property tax refund return must include 
 92.10  instructions that the individual filing the return may designate 
 92.11  $5 on the return only if the individual has not designated $5 on 
 92.12  the income tax return. 
 92.13     [EFFECTIVE DATE.] This section is effective beginning with 
 92.14  designations made on income tax returns filed for tax years 
 92.15  beginning after December 31, 2004, and property tax refund 
 92.16  returns based on property taxes payable in 2006 or rent 
 92.17  constituting property taxes paid in 2005. 
 92.18     Sec. 16.  Minnesota Statutes 2004, section 10A.31, 
 92.19  subdivision 4, is amended to read: 
 92.20     Subd. 4.  [APPROPRIATION.] (a) The amounts designated by 
 92.21  individuals for the state elections campaign fund, less three 
 92.22  percent, are appropriated from the general fund, must be 
 92.23  transferred and credited to the appropriate account in the state 
 92.24  elections campaign fund, and are annually appropriated for 
 92.25  distribution as set forth in subdivisions 5, 5a, 6, and 7.  The 
 92.26  remaining three percent must be kept in the general state 
 92.27  elections campaign fund for administrative costs.  
 92.28     (b) In addition to the amounts in paragraph (a), $1,500,000 
 92.29  for each general election is appropriated from the general fund 
 92.30  for transfer to the general account of the state elections 
 92.31  campaign fund. 
 92.32     Of this appropriation, $65,000 each fiscal year must be set 
 92.33  aside to pay assessments made by the Office of Administrative 
 92.34  Hearings under section 211B.37.  Amounts remaining after all 
 92.35  assessments have been paid must be canceled to the general 
 92.36  account. 
 93.1      [EFFECTIVE DATE.] The changes to paragraph (a) are 
 93.2   effective beginning with designations made on income tax returns 
 93.3   filed for tax years beginning after December 31, 2004, and 
 93.4   property tax refund returns based on property taxes payable in 
 93.5   2006 or rent constituting property taxes paid in 2005.  The 
 93.6   changes to paragraph (b) are effective for appropriations for 
 93.7   general elections occurring after December 31, 2004. 
 93.8      Sec. 17.  Minnesota Statutes 2004, section 10A.31, 
 93.9   subdivision 5, is amended to read: 
 93.10     Subd. 5.  [ALLOCATION.] (a)  [GENERAL ACCOUNT.] In each 
 93.11  calendar year the money in the general account must be allocated 
 93.12  to candidates as follows: 
 93.13     (1) 21 percent for the offices of governor and lieutenant 
 93.14  governor together; 
 93.15     (2) 4.2 percent for the office of attorney general; 
 93.16     (3) 2.4 percent each for the offices of secretary of state 
 93.17  and state auditor; 
 93.18     (4) in each calendar year during the period in which state 
 93.19  senators serve a four-year term, 23-1/3 percent for the office 
 93.20  of state senator, and 46-2/3 percent for the office of state 
 93.21  representative; and 
 93.22     (5) in each calendar year during the period in which state 
 93.23  senators serve a two-year term, 35 percent each for the offices 
 93.24  of state senator and state representative. 
 93.25     (b)  [PARTY ACCOUNT.] In each calendar year the money in 
 93.26  each party account must be allocated as follows: 
 93.27     (1) 14 percent for the offices of governor and lieutenant 
 93.28  governor together; 
 93.29     (2) 2.8 percent for the office of attorney general; 
 93.30     (3) 1.6 percent each for the offices of secretary of state 
 93.31  and state auditor; 
 93.32     (4) in each calendar year during the period in which state 
 93.33  senators serve a four-year term, 23-1/3 28-1/3 percent for the 
 93.34  office of state senator, and 46-2/3 51-2/3 percent for the 
 93.35  office of state representative; and 
 93.36     (5) in each calendar year during the period in which state 
 94.1   senators serve a two-year term, 35 40 percent each for the 
 94.2   offices of state senator and state representative; and 
 94.3      (6) ten percent for the state committee of a political 
 94.4   party. 
 94.5      Money allocated to each state committee under clause (6) 
 94.6   must be deposited in a separate account and must be spent for 
 94.7   only those items enumerated in section 10A.275.  Money allocated 
 94.8   to a state committee under clause (6) must be paid to the 
 94.9   committee by the board as it is received in the account on a 
 94.10  monthly basis, with payment on the 15th day of the calendar 
 94.11  month following the month in which the returns were processed by 
 94.12  the Department of Revenue, provided that these distributions 
 94.13  would be equal to 90 percent of the amount of money indicated in 
 94.14  the Department of Revenue's weekly unedited reports of income 
 94.15  tax returns and property tax refund returns processed in the 
 94.16  month, as notified by the Department of Revenue to the board.  
 94.17  The amounts paid to each state committee are subject to biennial 
 94.18  adjustment and settlement at the time of each certification 
 94.19  required of the commissioner of revenue under subdivisions 7 and 
 94.20  10.  If the total amount of payments received by a state 
 94.21  committee for the period reflected on a certification by the 
 94.22  Department of Revenue is different from the amount that should 
 94.23  have been received during the period according to the 
 94.24  certification, each subsequent monthly payment must be increased 
 94.25  or decreased to the fullest extent possible until the amount of 
 94.26  the overpayment is recovered or the underpayment is distributed. 
 94.27     Sec. 18.  Minnesota Statutes 2004, section 10A.31, 
 94.28  subdivision 6a, is amended to read: 
 94.29     Subd. 6a.  [PARTY ACCOUNT MONEY NOT DISTRIBUTED.] Money 
 94.30  from a party account not distributed to candidates for state 
 94.31  senator or representative in any election year must be returned 
 94.32  to the general fund of the state, except that the subsidy from 
 94.33  the party account an unopposed candidate would otherwise have 
 94.34  been eligible to receive must be paid to the state committee of 
 94.35  the candidate's political party to be deposited in a special 
 94.36  account under subdivision 5, paragraph (b), clause (6), and used 
 95.1   for only those items permitted under section 10A.275.  Money 
 95.2   from a party account not distributed to candidates for other 
 95.3   offices in an election year must be returned to the party 
 95.4   account for reallocation to candidates as provided in 
 95.5   subdivision 5, paragraph (b), in the following year. 
 95.6      Sec. 19.  Minnesota Statutes 2004, section 200.02, 
 95.7   subdivision 7, is amended to read: 
 95.8      Subd. 7.  [MAJOR POLITICAL PARTY.] (a) "Major political 
 95.9   party" means a political party that maintains a party 
 95.10  organization in the state, political division or precinct in 
 95.11  question and that has presented at least one candidate for 
 95.12  election to the office of: 
 95.13     (1) governor and lieutenant governor, secretary of state, 
 95.14  state auditor, or attorney general at the last preceding state 
 95.15  general election for those offices; or 
 95.16     (2) presidential elector or U.S. senator at the last 
 95.17  preceding state general election for presidential electors; and 
 95.18     whose candidate received votes in each county in that 
 95.19  election and received votes from not less than five percent of 
 95.20  the total number of individuals who voted in that election. 
 95.21     (b) "Major political party" also means a political party 
 95.22  that maintains a party organization in the state, political 
 95.23  subdivision, or precinct in question and whose members present 
 95.24  to the secretary of state at any time before the close of filing 
 95.25  for the state partisan primary ballot a petition for a place on 
 95.26  the state partisan primary ballot, which petition contains 
 95.27  signatures of a number of the party members equal to at least 
 95.28  five percent of the total number of individuals who voted in the 
 95.29  preceding state general election. 
 95.30     (c) A political party whose candidate receives a sufficient 
 95.31  number of votes at a state general election described in 
 95.32  paragraph (a) becomes a major political party as of January 1 
 95.33  following that election and retains its major party status 
 95.34  notwithstanding that for at least two state general elections 
 95.35  even if the party fails to present a candidate who receives the 
 95.36  number and percentage of votes required under paragraph (a) 
 96.1   at the following subsequent state general election elections. 
 96.2      (d) A major political party whose candidates fail to 
 96.3   receive the number and percentage of votes required under 
 96.4   paragraph (a) at either each of two consecutive state general 
 96.5   election elections described by paragraph (a) loses major party 
 96.6   status as of December 31 following the most recent later of the 
 96.7   two consecutive state general election elections. 
 96.8      Sec. 20.  Minnesota Statutes 2004, section 200.02, 
 96.9   subdivision 23, is amended to read: 
 96.10     Subd. 23.  [MINOR POLITICAL PARTY.] (a) "Minor political 
 96.11  party" means a political party that is not a major political 
 96.12  party as defined by subdivision 7 and that has adopted a state 
 96.13  constitution, designated a state party chair, held a state 
 96.14  convention in the last two years, filed with the secretary of 
 96.15  state no later than December 31 following the most recent state 
 96.16  general election a certification that the party has met the 
 96.17  foregoing requirements, and met the requirements of paragraph 
 96.18  (b) or (e), as applicable. 
 96.19     (b) To be considered a minor party in all elections 
 96.20  statewide, the political party must have presented at least one 
 96.21  candidate for election to the office of: 
 96.22     (1) governor and lieutenant governor, secretary of state, 
 96.23  state auditor, or attorney general, at the last preceding state 
 96.24  general election for those offices; or 
 96.25     (2) presidential elector or U.S. senator at the preceding 
 96.26  state general election for presidential electors; and 
 96.27  who received votes in each county that in the aggregate equal at 
 96.28  least one percent of the total number of individuals who voted 
 96.29  in the election, or its members must have presented to the 
 96.30  secretary of state at any time before the close of filing for 
 96.31  the state partisan primary ballot a nominating petition in a 
 96.32  form prescribed by the secretary of state containing the 
 96.33  signatures of party members in a number equal to at least one 
 96.34  percent of the total number of individuals who voted in the 
 96.35  preceding state general election. 
 96.36     (c) A political party whose candidate receives a sufficient 
 97.1   number of votes at a state general election described in 
 97.2   paragraph (b) becomes a minor political party as of January 1 
 97.3   following that election and retains its minor party status 
 97.4   notwithstanding that for at least two state general elections 
 97.5   even if the party fails to present a candidate who receives the 
 97.6   number and percentage of votes required under paragraph (b) 
 97.7   at the following subsequent state general election elections. 
 97.8      (d) A minor political party whose candidates fail to 
 97.9   receive the number and percentage of votes required under 
 97.10  paragraph (b) at either each of two consecutive state general 
 97.11  election elections described by paragraph (b) loses minor party 
 97.12  status as of December 31 following the most recent later of the 
 97.13  two consecutive state general election elections. 
 97.14     (e) To be considered a minor party in an election in a 
 97.15  legislative district, the political party must have presented at 
 97.16  least one candidate for a legislative office in that district 
 97.17  who received votes from at least ten percent of the total number 
 97.18  of individuals who voted for that office, or its members must 
 97.19  have presented to the secretary of state a nominating petition 
 97.20  in a form prescribed by the secretary of state containing the 
 97.21  signatures of party members in a number equal to at least ten 
 97.22  percent of the total number of individuals who voted in the 
 97.23  preceding state general election for that legislative office. 
 97.24     Sec. 21.  Minnesota Statutes 2004, section 200.02, is 
 97.25  amended by adding a subdivision to read: 
 97.26     Subd. 24.  [METROPOLITAN AREA.] "Metropolitan area" means 
 97.27  the counties of Ramsey, Hennepin, Anoka, Washington, Dakota, 
 97.28  Scott, Carver, Wright, Sherburne, Isanti, and Chisago. 
 97.29     Sec. 22.  Minnesota Statutes 2004, section 201.022, is 
 97.30  amended by adding a subdivision to read: 
 97.31     Subd. 3.  [CONSULTATION WITH LOCAL 
 97.32  OFFICIALS.] Representatives of local election officials shall be 
 97.33  consulted in the development of the statewide voter registration 
 97.34  system.  
 97.35     [EFFECTIVE DATE.] This section is effective the day 
 97.36  following final enactment. 
 98.1      Sec. 23.  Minnesota Statutes 2004, section 201.061, 
 98.2   subdivision 3, is amended to read: 
 98.3      Subd. 3.  [ELECTION DAY REGISTRATION.] An individual who is 
 98.4   eligible to vote may register on election day by appearing in 
 98.5   person at the polling place for the precinct in which the 
 98.6   individual maintains residence, by completing a registration 
 98.7   application, making an oath in the form prescribed by the 
 98.8   secretary of state and providing proof of residence.  An 
 98.9   individual may prove residence for purposes of registering by: 
 98.10     (1) presenting a driver's license or Minnesota 
 98.11  identification card issued pursuant to section 171.07; 
 98.12     (2) presenting any document approved by the secretary of 
 98.13  state as proper identification; 
 98.14     (3) presenting one of the following: 
 98.15     (i) a current valid student identification card from a 
 98.16  postsecondary educational institution in Minnesota, if a list of 
 98.17  students from that institution has been prepared under section 
 98.18  135A.17 and certified to the county auditor in the manner 
 98.19  provided in rules of the secretary of state; or 
 98.20     (ii) a current student fee statement that contains the 
 98.21  student's valid address in the precinct together with a picture 
 98.22  identification card; or 
 98.23     (4) having a voter who is registered to vote in the 
 98.24  precinct sign an oath in the presence of the election judge 
 98.25  vouching that the voter personally knows that the individual is 
 98.26  a resident of the precinct.  A voter who has been vouched for on 
 98.27  election day may not sign a proof of residence oath vouching for 
 98.28  any other individual on that election day.  A voter who is 
 98.29  registered to vote in the precinct may sign up to 15 
 98.30  proof-of-residence oaths on any election day.  The oath required 
 98.31  by this subdivision and Minnesota Rules, part 8200.9939, must be 
 98.32  attached to the voter registration application and the 
 98.33  information on the oath must be recorded on the records of both 
 98.34  the voter registering on election day and the voter who is 
 98.35  vouching for the person's residence, and entered into the 
 98.36  statewide voter registration system by the county auditor when 
 99.1   the voter registration application is entered into that system. 
 99.2      For tribal band members living on an Indian reservation, an 
 99.3   individual may prove residence for purposes of registering by 
 99.4   presenting an identification card issued by the tribal 
 99.5   government of a tribe recognized by the Bureau of Indian 
 99.6   Affairs, United States Department of the Interior, that contains 
 99.7   the name, street address, signature, and picture of the 
 99.8   individual.  The county auditor of each county having territory 
 99.9   within the reservation shall maintain a record of the number of 
 99.10  election day registrations accepted under this section. 
 99.11     A county, school district, or municipality may require that 
 99.12  an election judge responsible for election day registration 
 99.13  initial each completed registration application. 
 99.14     Sec. 24.  Minnesota Statutes 2004, section 201.071, 
 99.15  subdivision 1, is amended to read: 
 99.16     Subdivision 1.  [FORM.] A voter registration application 
 99.17  must be of suitable size and weight for mailing and contain 
 99.18  spaces for the following required information:  voter's first 
 99.19  name, middle name, and last name; voter's previous name, if any; 
 99.20  voter's current address; voter's previous address, if any; 
 99.21  voter's date of birth; voter's municipality and county of 
 99.22  residence; voter's telephone number, if provided by the voter; 
 99.23  date of registration; current and valid Minnesota driver's 
 99.24  license number or Minnesota state identification number, or if 
 99.25  the voter has no current and valid Minnesota driver's license or 
 99.26  Minnesota state identification, the last four digits of the 
 99.27  voter's Social Security number; and voter's signature.  The 
 99.28  registration application may include the voter's e-mail address, 
 99.29  if provided by the voter, and the voter's interest in serving as 
 99.30  an election judge, if indicated by the voter.  The application 
 99.31  must also contain the following certification of voter 
 99.32  eligibility: 
 99.33     "I certify that I: 
 99.34     (1) will be at least 18 years old on election day; 
 99.35     (2) am a citizen of the United States; 
 99.36     (3) will have resided in Minnesota for 20 days immediately 
100.1   preceding election day; 
100.2      (4) maintain residence at the address given on the 
100.3   registration form; 
100.4      (5) am not under court-ordered guardianship of the person 
100.5   where I have not retained the right to vote; 
100.6      (6) have not been found by a court to be legally 
100.7   incompetent to vote; 
100.8      (7) have not been convicted of a felony without having my 
100.9   civil rights restored; and 
100.10     (8) have read and understand the following statement:  that 
100.11  giving false information is a felony punishable by not more than 
100.12  five years imprisonment or a fine of not more than $10,000, or 
100.13  both." 
100.14     The certification must include boxes for the voter to 
100.15  respond to the following questions:  
100.16     "(1) Are you a citizen of the United States?" and 
100.17     "(2) Will you be 18 years old on or before election day?" 
100.18     And the instruction: 
100.19     "If you checked 'no' to either of these questions, do not 
100.20  complete this form." 
100.21     The form of the voter registration application and the 
100.22  certification of voter eligibility must be as provided in this 
100.23  subdivision and approved by the secretary of state.  Voter 
100.24  registration forms authorized by the National Voter Registration 
100.25  Act may must also be accepted as valid.  The federal postcard 
100.26  application form must also be accepted as valid if it is not 
100.27  deficient and the voter is eligible to register in Minnesota.  
100.28     An individual may use a voter registration application to 
100.29  apply to register to vote in Minnesota or to change information 
100.30  on an existing registration. 
100.31     Sec. 25.  Minnesota Statutes 2004, section 201.091, 
100.32  subdivision 5, is amended to read: 
100.33     Subd. 5.  [COPY OF LIST TO REGISTERED VOTER.] The county 
100.34  auditors and the secretary of state shall provide copies of the 
100.35  public information lists in electronic or other media to any 
100.36  voter registered in Minnesota within ten days of receiving a 
101.1   written or electronic request accompanied by payment of the cost 
101.2   of reproduction.  The county auditors and the secretary of state 
101.3   shall make a copy of the list available for public inspection 
101.4   without cost.  An individual who inspects or acquires a copy of 
101.5   a public information list may not use any information contained 
101.6   in it for purposes unrelated to elections, political activities, 
101.7   or law enforcement.  
101.8      Sec. 26.  Minnesota Statutes 2004, section 203B.01, 
101.9   subdivision 3, is amended to read: 
101.10     Subd. 3.  [MILITARY.] "Military" means the Army, Navy, Air 
101.11  Force, Marine Corps, Coast Guard or Merchant Marine of the 
101.12  United States, and all other uniformed services as defined in 
101.13  United States Code, title 42, section 1973ff-6.  
101.14     Sec. 27.  Minnesota Statutes 2004, section 203B.02, 
101.15  subdivision 1, is amended to read: 
101.16     Subdivision 1.  [UNABLE TO GO TO ABSENCE FROM POLLING 
101.17  PLACE.] (a) Any eligible voter who reasonably expects to be 
101.18  unable to go to absent from the polling place on election day in 
101.19  the precinct where the individual maintains residence because of 
101.20  absence from the precinct, illness, disability, religious 
101.21  discipline, observance of a religious holiday, or service as an 
101.22  election judge in another precinct may vote by absentee ballot 
101.23  in person at any location where absentee ballots may be cast 
101.24  pursuant to sections 203B.081 and 203B.085, during the 18 days 
101.25  preceding any election.  This subdivision does not apply to a 
101.26  special election to fill a vacancy in office pursuant to 
101.27  sections 204D.17 to 204D.27 not held concurrently with a state 
101.28  primary or general election as provided in sections 203B.04 to 
101.29  203B.15. 
101.30     (b) Any eligible voter who reasonably expects to be unable 
101.31  to go to the polling place on election day in the precinct where 
101.32  the individual maintains residence because of absence from the 
101.33  precinct, illness, disability, religious discipline, observance 
101.34  of a religious holiday, or service as an election judge in 
101.35  another precinct may vote by absentee ballot as provided in 
101.36  sections 203B.04 to 203B.15. 
102.1      Sec. 28.  Minnesota Statutes 2004, section 203B.04, 
102.2   subdivision 1, is amended to read: 
102.3      Subdivision 1.  [APPLICATION PROCEDURES.] Except as 
102.4   otherwise allowed by subdivision 2, an application for absentee 
102.5   ballots for any election may be submitted at any time not less 
102.6   than one day before the day of that election.  The county 
102.7   auditor shall prepare absentee ballot application forms in the 
102.8   format provided in the rules of by the secretary of state, 
102.9   notwithstanding rules on absentee ballot forms, and shall 
102.10  furnish them to any person on request.  By January 1 of each 
102.11  even-numbered year, the secretary of state shall make the forms 
102.12  to be used available to auditors through electronic means.  An 
102.13  application submitted pursuant to this subdivision shall be in 
102.14  writing and shall be submitted to:  
102.15     (a) the county auditor of the county where the applicant 
102.16  maintains residence; or 
102.17     (b) the municipal clerk of the municipality, or school 
102.18  district if applicable, where the applicant maintains residence. 
102.19     An application shall be approved if it is timely received, 
102.20  signed and dated by the applicant, contains the applicant's name 
102.21  and residence and mailing addresses, and states that the 
102.22  applicant is eligible to vote by absentee ballot for one of the 
102.23  reasons specified in section 203B.02.  The application may 
102.24  contain a request for the voter's date of birth, which must not 
102.25  be made available for public inspection.  An application may be 
102.26  submitted to the county auditor or municipal clerk by an 
102.27  electronic facsimile device.  An application mailed or returned 
102.28  in person to the county auditor or municipal clerk on behalf of 
102.29  a voter by a person other than the voter must be deposited in 
102.30  the mail or returned in person to the county auditor or 
102.31  municipal clerk within ten days after it has been dated by the 
102.32  voter and no later than six days before the election.  The 
102.33  absentee ballot applications or a list of persons applying for 
102.34  an absentee ballot may not be made available for public 
102.35  inspection until the close of voting on election day.  
102.36     An application under this subdivision may contain an 
103.1   application under subdivision 5 to automatically receive an 
103.2   absentee ballot application. 
103.3      Sec. 29.  Minnesota Statutes 2004, section 203B.04, 
103.4   subdivision 4, is amended to read: 
103.5      Subd. 4.  [REGISTRATION AT TIME OF APPLICATION.] An 
103.6   eligible voter who is not registered to vote but who is 
103.7   otherwise eligible to vote by absentee ballot may register by 
103.8   including a completed voter registration card with the absentee 
103.9   ballot.  The individual shall present proof of residence as 
103.10  required by section 201.061, subdivision 3, to the individual 
103.11  who witnesses the marking of the absentee ballots.  A military 
103.12  voter, as defined in section 203B.01, may register in this 
103.13  manner if voting pursuant to sections 203B.04 to 203B.15, or may 
103.14  register pursuant to sections 203B.16 to 203B.27.  
103.15     Sec. 30.  Minnesota Statutes 2004, section 203B.04, is 
103.16  amended by adding a subdivision to read: 
103.17     Subd. 6.  [ONGOING ABSENTEE STATUS; TERMINATION.] (a) An 
103.18  eligible voter may apply to a county auditor or municipal clerk 
103.19  for status as an ongoing absentee voter who reasonably expects 
103.20  to meet the requirements of section 203B.02, subdivision 1.  
103.21  Each applicant must automatically be provided with an absentee 
103.22  ballot application for each ensuing election other than an 
103.23  election by mail conducted under section 204B.45, and must have 
103.24  the status of ongoing absentee voter indicated on the voter's 
103.25  registration record. 
103.26     (b) Ongoing absentee voter status ends on: 
103.27     (1) the voter's written request; 
103.28     (2) the voter's death; 
103.29     (3) return of an ongoing absentee ballot as undeliverable; 
103.30     (4) a change in the voter's status so that the voter is not 
103.31  eligible to vote under section 201.15 or 201.155; or 
103.32     (5) placement of the voter's registration on inactive 
103.33  status under section 201.171. 
103.34     Sec. 31.  Minnesota Statutes 2004, section 203B.07, 
103.35  subdivision 2, is amended to read: 
103.36     Subd. 2.  [DESIGN OF ENVELOPES.] The return envelope shall 
104.1   be of sufficient size to conveniently enclose and contain the 
104.2   ballot envelope and a voter registration card folded along its 
104.3   perforations.  The return envelope shall be designed to open on 
104.4   the left-hand end and, notwithstanding any rule to the contrary, 
104.5   the design must provide an additional flap that when sealed, 
104.6   conceals the signature, identification, and other information.  
104.7   Election officials may open the flap at any time after receiving 
104.8   the returned ballot to inspect the returned certificate for 
104.9   completeness or to ascertain other information.  A certificate 
104.10  of eligibility to vote by absentee ballot shall be printed on 
104.11  the right hand three-fourths of the back of the envelope.  The 
104.12  certificate shall contain a statement to be signed and sworn by 
104.13  the voter indicating that the voter meets all of the 
104.14  requirements established by law for voting by absentee ballot.  
104.15  The certificate shall also contain a statement signed by a 
104.16  person who is registered to vote in Minnesota or by a notary 
104.17  public or other individual authorized to administer oaths 
104.18  stating that:  
104.19     (a) the ballots were displayed to that individual unmarked; 
104.20     (b) the voter marked the ballots in that individual's 
104.21  presence without showing how they were marked, or, if the voter 
104.22  was physically unable to mark them, that the voter directed 
104.23  another individual to mark them; and 
104.24     (c) if the voter was not previously registered, the voter 
104.25  has provided proof of residence as required by section 201.061, 
104.26  subdivision 3.  
104.27     The county auditor or municipal clerk shall affix first 
104.28  class postage to the return envelopes.  
104.29     Sec. 32.  Minnesota Statutes 2004, section 203B.11, 
104.30  subdivision 1, is amended to read: 
104.31     Subdivision 1.  [GENERALLY.] Each full-time municipal clerk 
104.32  or school district clerk who has authority under section 203B.05 
104.33  to administer absentee voting laws shall designate election 
104.34  judges to deliver absentee ballots in accordance with this 
104.35  section.  The county auditor may must also designate election 
104.36  judges to perform the duties in this section.  A ballot may be 
105.1   delivered only to an eligible voter who is a temporary or 
105.2   permanent resident or patient in a health care facility or 
105.3   hospital located in the municipality in which the voter 
105.4   maintains residence.  The ballots shall be delivered by two 
105.5   election judges, each of whom is affiliated with a different 
105.6   major political party.  When the election judges deliver or 
105.7   return ballots as provided in this section, they shall travel 
105.8   together in the same vehicle.  Both election judges shall be 
105.9   present when an applicant completes the certificate of 
105.10  eligibility and marks the absentee ballots, and may assist an 
105.11  applicant as provided in section 204C.15.  The election judges 
105.12  shall deposit the return envelopes containing the marked 
105.13  absentee ballots in a sealed container and return them to the 
105.14  clerk on the same day that they are delivered and marked. 
105.15     Sec. 33.  Minnesota Statutes 2004, section 203B.12, 
105.16  subdivision 2, is amended to read: 
105.17     Subd. 2.  [EXAMINATION OF RETURN ENVELOPES.] Two or more 
105.18  election judges shall examine each return envelope and shall 
105.19  mark it accepted or rejected in the manner provided in this 
105.20  subdivision.  If a ballot has been prepared under section 
105.21  204B.12, subdivision 2a, or 204B.41, the election judges shall 
105.22  not begin removing ballot envelopes from the return envelopes 
105.23  until 8:00 p.m. on election day, either in the polling place or 
105.24  at an absentee ballot board established under section 203B.13. 
105.25     The election judges shall mark the return envelope 
105.26  "Accepted" and initial or sign the return envelope below the 
105.27  word "Accepted" if the election judges or a majority of them are 
105.28  satisfied that:  
105.29     (1) the voter's name and address on the return envelope are 
105.30  the same as the information provided on the absentee ballot 
105.31  application; 
105.32     (2) the voter's signature on the return envelope is the 
105.33  genuine signature of the individual who made the application for 
105.34  ballots and the certificate has been completed as prescribed in 
105.35  the directions for casting an absentee ballot, except that if a 
105.36  person other than the voter applied for the absentee ballot 
106.1   under applicable Minnesota Rules, the signature is not required 
106.2   to match; 
106.3      (3) the voter is registered and eligible to vote in the 
106.4   precinct or has included a properly completed voter registration 
106.5   application in the return envelope; and 
106.6      (4) the voter has not already voted at that election, 
106.7   either in person or by absentee ballot.  
106.8      There is no other reason for rejecting an absentee ballot.  
106.9   In particular, failure to place the envelope within the security 
106.10  envelope before placing it in the outer white envelope is not a 
106.11  reason to reject an absentee ballot. 
106.12     The return envelope from accepted ballots must be preserved 
106.13  and returned to the county auditor.  
106.14     If all or a majority of the election judges examining 
106.15  return envelopes find that an absent voter has failed to meet 
106.16  one of the requirements prescribed in clauses (1) to (4), they 
106.17  shall mark the return envelope "Rejected," initial or sign it 
106.18  below the word "Rejected," and return it to the county auditor.  
106.19     Sec. 34.  Minnesota Statutes 2004, section 203B.20, is 
106.20  amended to read: 
106.21     203B.20 [CHALLENGES.] 
106.22     Except as provided in this section, the eligibility or 
106.23  residence of a voter whose application for absentee ballots is 
106.24  recorded under section 203B.19 may be challenged in the manner 
106.25  set forth by section 201.195.  The county auditor or municipal 
106.26  clerk shall not be required to serve a copy of the petition and 
106.27  notice of hearing on the challenged voter, unless the absentee 
106.28  ballot application was submitted on behalf of a voter by an 
106.29  individual authorized under section 203B.17, subdivision 1, 
106.30  paragraph (a), in which case the county auditor must attempt to 
106.31  notify the individual who submitted the application of the 
106.32  challenge.  The county auditor may contact other registered 
106.33  voters to request information that may resolve any discrepancies 
106.34  appearing in the application.  All reasonable doubt shall be 
106.35  resolved in favor of the validity of the application.  If the 
106.36  voter's challenge is affirmed, the county auditor shall provide 
107.1   the challenged voter with a copy of the petition and the 
107.2   decision and shall inform the voter of the right to appeal as 
107.3   provided in section 201.195.  
107.4      Sec. 35.  Minnesota Statutes 2004, section 203B.21, 
107.5   subdivision 1, is amended to read: 
107.6      Subdivision 1.  [FORM.] Absentee ballots under sections 
107.7   203B.16 to 203B.27 shall conform to the requirements of the 
107.8   Minnesota Election Law, except that modifications in the size or 
107.9   form of ballots or envelopes may be made if necessary to satisfy 
107.10  the requirements of the United States postal service, and the 
107.11  design must provide an additional flap that when sealed, 
107.12  conceals the signature, identification, and other information.  
107.13  The flap must be perforated to permit election officials to 
107.14  inspect the returned certificate for completeness or to 
107.15  ascertain other information at any time after receiving the 
107.16  returned ballot without opening the return envelope. 
107.17     Sec. 36.  Minnesota Statutes 2004, section 203B.21, 
107.18  subdivision 3, is amended to read: 
107.19     Subd. 3.  [BACK OF RETURN ENVELOPE.] On the back of the 
107.20  return envelope an affidavit form shall appear with space for:  
107.21     (a) The voter's address of present or former residence in 
107.22  Minnesota; 
107.23     (b) A statement indicating the category described in 
107.24  section 203B.16 to which the voter belongs; 
107.25     (c) A statement that the voter has not cast and will not 
107.26  cast another absentee ballot in the same election or elections; 
107.27     (d) A statement that the voter personally marked the 
107.28  ballots without showing them to anyone, or if physically unable 
107.29  to mark them, that the voter directed another individual to mark 
107.30  them; and 
107.31     (e) The voter's military identification card number, 
107.32  passport number, or, if the voter does not have a valid passport 
107.33  or identification card, the signature and certification of an 
107.34  individual authorized to administer oaths under federal law or 
107.35  the law of the place where the oath was administered or a 
107.36  commissioned or noncommissioned officer personnel of the 
108.1   military not below the rank of sergeant or its equivalent. 
108.2      The affidavit shall also contain a signed and dated oath in 
108.3   the form required by section 705 of the Help America Vote Act, 
108.4   Public Law 107-252, which must read: 
108.5      "I swear or affirm, under penalty of perjury, that: 
108.6      I am a member of the uniformed services or merchant marine 
108.7   on active duty or an eligible spouse or dependent of such a 
108.8   member; a United States citizen temporarily residing outside the 
108.9   United States; or other United States citizen residing outside 
108.10  the United States; and I am a United States citizen, at least 18 
108.11  years of age (or will be by the date of the election), and I am 
108.12  eligible to vote in the requested jurisdiction; I have not been 
108.13  convicted of a felony, or other disqualifying offense, or been 
108.14  adjudicated mentally incompetent, or, if so, my voting rights 
108.15  have been reinstated; and I am not registering, requesting a 
108.16  ballot, or voting in any other jurisdiction in the United States 
108.17  except the jurisdiction cited in this voting form.  In voting, I 
108.18  have marked and sealed my ballot in private and have not allowed 
108.19  any person to observe the marking of the ballot, except for 
108.20  those authorized to assist voters under state or federal law.  I 
108.21  have not been influenced. 
108.22     My signature and date below indicate when I completed this 
108.23  document. 
108.24     The information on this form is true, accurate, and 
108.25  complete to the best of my knowledge.  I understand that a 
108.26  material misstatement of fact in completion of this document may 
108.27  constitute grounds for a conviction for perjury." 
108.28     Sec. 37.  Minnesota Statutes 2004, section 203B.24, 
108.29  subdivision 1, is amended to read: 
108.30     Subdivision 1.  [CHECK OF VOTER ELIGIBILITY; PROPER 
108.31  EXECUTION OF AFFIDAVIT.] Upon receipt of an absentee ballot 
108.32  returned as provided in sections 203B.16 to 203B.27, the 
108.33  election judges shall compare the voter's name with the names 
108.34  appearing on their copy of the application records to insure 
108.35  that the ballot is from a voter eligible to cast an absentee 
108.36  ballot under sections 203B.16 to 203B.27.  Any discrepancy or 
109.1   disqualifying fact shall be noted on the envelope by the 
109.2   election judges.  The election judges shall mark the return 
109.3   envelope "Accepted" and initial or sign the return envelope 
109.4   below the word "Accepted" if the election judges are satisfied 
109.5   that: 
109.6      (1) the voter's name on the return envelope appears in 
109.7   substantially the same form as on the application records 
109.8   provided to the election judges by the county auditor; 
109.9      (2) the voter has signed the federal oath prescribed 
109.10  pursuant to section 705(b)(2) of the Help America Vote Act, 
109.11  Public Law 107-252; 
109.12     (3) the voter has set forth the voter's military 
109.13  identification number or passport number or, if those numbers do 
109.14  not appear, a person authorized to administer oaths under 
109.15  federal law or the law of the place where the oath was 
109.16  administered or a witness who is military personnel with a rank 
109.17  at or above the rank of sergeant or its equivalent has signed 
109.18  the ballot; and 
109.19     (4) the voter has not already voted at that election, 
109.20  either in person or by absentee ballot. 
109.21     An absentee ballot case pursuant to sections 203B.16 to 
109.22  203B.27 may only be rejected for the lack of one of clauses (1) 
109.23  to (4).  In particular, failure to place the envelope within the 
109.24  security envelope before placing it in the outer white envelope 
109.25  is not a reason to reject an absentee ballot. 
109.26     Election judges must note the reason for rejection on the 
109.27  back of the envelope in the space provided for that purpose. 
109.28     Failure to return unused ballots shall not invalidate a 
109.29  marked ballot, but a ballot shall not be counted if the 
109.30  affidavit on the return envelope is not properly executed.  In 
109.31  all other respects the provisions of the Minnesota Election Law 
109.32  governing deposit and counting of ballots shall apply.  
109.33     Sec. 38.  Minnesota Statutes 2004, section 204B.10, 
109.34  subdivision 6, is amended to read: 
109.35     Subd. 6.  [INELIGIBLE VOTER.] Upon receipt of a certified 
109.36  copy of a final judgment or order of a court of competent 
110.1   jurisdiction that a person who has filed an affidavit of 
110.2   candidacy or who has been nominated by petition: 
110.3      (1) has been convicted of treason or a felony and the 
110.4   person's civil rights have not been restored; 
110.5      (2) is under guardianship of the person; or 
110.6      (3) has been found by a court of law to be legally 
110.7   incompetent; 
110.8   the filing officer shall notify the person by certified mail at 
110.9   the address shown on the affidavit or petition, and, for offices 
110.10  other than president of the United States, vice-president of the 
110.11  United States, United States senator, and United States 
110.12  representative in Congress, shall not certify the person's name 
110.13  to be placed on the ballot.  The actions of a filing officer 
110.14  under this subdivision are subject to judicial review under 
110.15  section 204B.44. 
110.16     Sec. 39.  Minnesota Statutes 2004, section 204B.14, 
110.17  subdivision 2, is amended to read: 
110.18     Subd. 2.  [SEPARATE PRECINCTS; COMBINED POLLING PLACE.] (a) 
110.19  The following shall constitute at least one election precinct:  
110.20     (1) each city ward; and 
110.21     (2) each town and each statutory city.  
110.22     (b) A single, accessible, combined polling place may be 
110.23  established no later than June 1 of any year: 
110.24     (1) for any city of the third or fourth class, any town, or 
110.25  any city having territory in more than one county, in which all 
110.26  the voters of the city or town shall cast their ballots; 
110.27     (2) for two contiguous precincts in the same municipality 
110.28  that have a combined total of fewer than 500 registered voters; 
110.29  or 
110.30     (3) for up to four contiguous municipalities located 
110.31  entirely outside the metropolitan area, as defined by section 
110.32  473.121, subdivision 2 200.02, subdivision 24, that are 
110.33  contained in the same county. 
110.34     A copy of the ordinance or resolution establishing a 
110.35  combined polling place must be filed with the county auditor 
110.36  within 30 days after approval by the governing body.  A polling 
111.1   place combined under clause (3) must be approved by the 
111.2   governing body of each participating municipality.  A 
111.3   municipality withdrawing from participation in a combined 
111.4   polling place must do so by filing a resolution of withdrawal 
111.5   with the county auditor no later than May 1 of any year. 
111.6      The secretary of state shall provide a separate polling 
111.7   place roster for each precinct served by the combined polling 
111.8   place.  A single set of election judges may be appointed to 
111.9   serve at a combined polling place.  The number of election 
111.10  judges required must be based on the total number of persons 
111.11  voting at the last similar election in all precincts to be 
111.12  voting at the combined polling place.  Separate ballot boxes 
111.13  must be provided for the ballots from each precinct.  The 
111.14  results of the election must be reported separately for each 
111.15  precinct served by the combined polling place, except in a 
111.16  polling place established under clause (2) where one of the 
111.17  precincts has fewer than ten registered voters, in which case 
111.18  the results of that precinct must be reported in the manner 
111.19  specified by the secretary of state.  
111.20     Sec. 40.  Minnesota Statutes 2004, section 204B.16, 
111.21  subdivision 1, is amended to read: 
111.22     Subdivision 1.  [AUTHORITY; LOCATION.] (a) The governing 
111.23  body of each municipality and of each county with precincts in 
111.24  unorganized territory shall designate by ordinance or resolution 
111.25  a polling place for each election precinct.  Polling places must 
111.26  be designated and ballots must be distributed so that no one is 
111.27  required to go to more than one polling place to vote in a 
111.28  school district and municipal election held on the same day.  
111.29  The polling place for a precinct in a city or in a school 
111.30  district located in whole or in part in the metropolitan area 
111.31  defined by section 473.121 200.02, subdivision 24, shall be 
111.32  located within the boundaries of the precinct or within 3,000 
111.33  feet of one of those boundaries unless a single polling place is 
111.34  designated for a city pursuant to section 204B.14, subdivision 
111.35  2, or a school district pursuant to section 205A.11.  The 
111.36  polling place for a precinct in unorganized territory may be 
112.1   located outside the precinct at a place which is convenient to 
112.2   the voters of the precinct.  If no suitable place is available 
112.3   within a town or within a school district located outside the 
112.4   metropolitan area defined by section 473.121 200.02, subdivision 
112.5   24, then the polling place for a town or school district may be 
112.6   located outside the town or school district within five miles of 
112.7   one of the boundaries of the town or school district. 
112.8      (b) Each polling place serving precincts in which, in 
112.9   aggregate, there were more than 100 voters in the most recent 
112.10  similar election, must be to the extent the governing body 
112.11  determines it is practicable, at least 750 square feet, with an 
112.12  additional 60 square feet for each 150 voters in excess of 400 
112.13  that voted in the most recent similar election. 
112.14     Sec. 41.  Minnesota Statutes 2004, section 204B.16, 
112.15  subdivision 5, is amended to read: 
112.16     Subd. 5.  [ACCESS BY ELDERLY AND HANDICAPPED PERSONS WITH 
112.17  DISABILITIES.] Each polling place shall be accessible to and 
112.18  usable by elderly individuals and physically handicapped 
112.19  individuals with disabilities.  A polling place is deemed to be 
112.20  accessible and usable if it complies with the standards in 
112.21  paragraphs (a) to (f).  
112.22     (a) At least one set of doors must have a minimum width of 
112.23  31 32 inches if the doors must be used to enter or leave the 
112.24  polling place.  
112.25     (b) Any curb adjacent to the main entrance to a polling 
112.26  place must have curb cuts or temporary ramps.  Where the main 
112.27  entrance is not the accessible entrance, any curb adjacent to 
112.28  the accessible entrance must also have curb cuts or temporary 
112.29  ramps.  
112.30     (c) Where the main entrance is not the accessible entrance, 
112.31  a sign shall be posted at the main entrance giving directions to 
112.32  the accessible entrance.  
112.33     (d) At least one set of stairs must have a temporary 
112.34  handrail and ramp if stairs must be used to enter or leave the 
112.35  polling place.  
112.36     (e) No barrier in the polling place may impede the path of 
113.1   the physically handicapped persons with disabilities to the 
113.2   voting booth.  
113.3      (f) At least one handicapped parking space for persons with 
113.4   disabilities, which may be temporarily so designated by the 
113.5   municipality for the day of the election, must be available near 
113.6   the accessible entrance.  
113.7      The doorway, handrails, ramps, and handicapped parking 
113.8   provided pursuant to this subdivision must conform to the 
113.9   standards specified in the State Building Code for accessibility 
113.10  by handicapped persons with disabilities.  
113.11     A governing body shall designate as polling places only 
113.12  those places which meet the standards prescribed in this 
113.13  subdivision unless no available place within a precinct is 
113.14  accessible or can be made accessible. 
113.15     Sec. 42.  Minnesota Statutes 2004, section 204B.18, 
113.16  subdivision 1, is amended to read: 
113.17     Subdivision 1.  [BOOTHS; VOTING STATIONS.] Each polling 
113.18  place must contain a number of at least two voting booths in 
113.19  proportion to the number of individuals eligible to vote in the 
113.20  precinct or self-contained voting stations plus one additional 
113.21  voting booth or self-contained voting station for each 150 
113.22  voters in excess of 200 registered in the precinct.  Each 
113.23  booth or station must be at least six feet high, three feet deep 
113.24  and two feet wide with a shelf at least two feet long and one 
113.25  foot wide placed at a convenient height for writing.  The 
113.26  booth or station shall be provided with a door or 
113.27  curtains permit the voter to vote privately and independently.  
113.28  Each accessible polling place must have at least one accessible 
113.29  voting booth or other accessible voting station and beginning 
113.30  with federal and state elections held after December 31, 2005, 
113.31  and county, municipal, and school district elections held after 
113.32  December 31, 2007, one voting system that conforms to section 
113.33  301(a)(3)(B) of the Help America Vote Act, Public Law 107-252.  
113.34  All booths or stations must be constructed so that a voter is 
113.35  free from observation while marking ballots.  In all other 
113.36  polling places every effort must be made to provide at least one 
114.1   accessible voting booth or other accessible voting station.  
114.2   During the hours of voting, the booths or stations must have 
114.3   instructions, a pencil, and other supplies needed to mark the 
114.4   ballots.  If needed, A chair must be provided for elderly and 
114.5   handicapped voters and voters with disabilities to use while 
114.6   voting or waiting to vote.  Stable flat writing surfaces must 
114.7   also be made available to voters who are completing 
114.8   election-related forms.  All ballot boxes, voting booths, voting 
114.9   stations, and election judges must be in open public view in the 
114.10  polling place. 
114.11     Sec. 43.  Minnesota Statutes 2004, section 204B.22, 
114.12  subdivision 3, is amended to read: 
114.13     Subd. 3.  [MINIMUM NUMBER REQUIRED IN CERTAIN PRECINCTS OF 
114.14  ELECTION JUDGES.] At each state primary or state general 
114.15  election in precincts using an electronic voting system with 
114.16  marking devices and in which more than 400 votes were cast at 
114.17  the last similar election, the minimum number of election judges 
114.18  is three plus one judge to demonstrate the use of the voting 
114.19  machine or device, and the number of additional election judges 
114.20  to be appointed is one for every 200 votes cast in that precinct 
114.21  in the most recent similar general election. 
114.22     Sec. 44.  Minnesota Statutes 2004, section 204B.27, 
114.23  subdivision 1, is amended to read: 
114.24     Subdivision 1.  [BLANK FORMS.] At least 25 14 days before 
114.25  every state election the secretary of state shall transmit to 
114.26  each county auditor a sufficient number of blank county abstract 
114.27  forms and other examples of any blank forms to be used as the 
114.28  secretary of state deems necessary for the conduct of the 
114.29  election.  County abstract forms may be provided to auditors 
114.30  electronically via the Minnesota State Election Reporting System 
114.31  maintained by the secretary of state, and must be available at 
114.32  least one week prior to the election.  
114.33     Sec. 45.  Minnesota Statutes 2004, section 204B.27, 
114.34  subdivision 3, is amended to read: 
114.35     Subd. 3.  [INSTRUCTION POSTERS.] At least 25 days before 
114.36  every state election, the secretary of state shall prepare and 
115.1   furnish to the county auditor of each county in which paper 
115.2   ballots are used, voter instruction posters printed in large 
115.3   type upon cards or heavy paper.  The instruction posters must 
115.4   contain the information needed to enable the voters to cast 
115.5   their paper ballots quickly and correctly and indicate the types 
115.6   of assistance available for elderly and handicapped voters.  Two 
115.7   instruction posters shall be furnished for each precinct in 
115.8   which paper ballots are used.  The secretary of state shall also 
115.9   provide posters informing voters of eligibility requirements to 
115.10  vote and of identification and proofs accepted for election day 
115.11  registration.  Posters furnished by the secretary of state must 
115.12  also include all information required to be posted by the Help 
115.13  America Vote Act, including:  instructions on how to vote, 
115.14  including how to cast a vote; instructions for mail-in 
115.15  registrants and first-time voters; general information on voting 
115.16  rights under applicable federal and state laws, and instructions 
115.17  on how to contact the appropriate officials if these rights are 
115.18  alleged to have been violated; and general information on 
115.19  federal and state laws regarding prohibitions on acts of fraud 
115.20  and misrepresentation.  
115.21     Sec. 46.  Minnesota Statutes 2004, section 204B.33, is 
115.22  amended to read: 
115.23     204B.33 [NOTICE OF FILING.] 
115.24     (a) Between June 1 and July 1 in each even numbered year, 
115.25  the secretary of state shall notify each county auditor of the 
115.26  offices to be voted for in that county at the next state general 
115.27  election for which candidates file with the secretary of state.  
115.28  The notice shall include the time and place of filing for those 
115.29  offices and for judicial offices shall list the name of the 
115.30  incumbent, if any, currently holding the seat to be voted for.  
115.31  Within ten days after notification by the secretary of state, 
115.32  each county auditor shall notify each municipal clerk in the 
115.33  county of all the offices to be voted for in the county at that 
115.34  election and the time and place for filing for those offices.  
115.35  The county auditors and municipal clerks shall promptly post a 
115.36  copy of that notice in their offices. 
116.1      (b) At least two weeks before the first day to file an 
116.2   affidavit of candidacy, the county auditor shall publish a 
116.3   notice stating the first and last dates on which affidavits of 
116.4   candidacy may be filed in the county auditor's office and the 
116.5   closing time for filing on the last day for filing.  The county 
116.6   auditor shall post a similar notice at least ten days before the 
116.7   first day to file affidavits of candidacy. 
116.8      Sec. 47.  Minnesota Statutes 2004, section 204C.05, 
116.9   subdivision 1a, is amended to read: 
116.10     Subd. 1a.  [ELECTIONS; ORGANIZED TOWN.] The governing body 
116.11  of a town with less than 500 inhabitants according to the most 
116.12  recent federal decennial census, which is located outside the 
116.13  metropolitan area as defined in section 473.121 200.02, 
116.14  subdivision 2 24, may fix a later time for voting to begin at 
116.15  state primary, special, or general elections, if approved by a 
116.16  vote of the town electors at the annual town meeting.  The 
116.17  question of shorter voting hours must be included in the notice 
116.18  of the annual town meeting before the question may be submitted 
116.19  to the electors at the meeting.  The later time may not be later 
116.20  than 10:00 a.m. for special, primary, or general elections.  The 
116.21  town clerk shall either post or publish notice of the changed 
116.22  hours and notify the county auditor of the change 30 days before 
116.23  the election. 
116.24     Sec. 48.  Minnesota Statutes 2004, section 204C.08, 
116.25  subdivision 1, is amended to read: 
116.26     Subdivision 1.  [DISPLAY OF FLAG; "VOTE HERE" SIGN.] (a) 
116.27  Upon their arrival at the polling place on the day of election, 
116.28  the election judges shall cause the national flag to be 
116.29  displayed on a suitable staff at the entrance to the polling 
116.30  place.  The flag shall be displayed continuously during the 
116.31  hours of voting and the election judges shall attest to that 
116.32  fact by signing the flag certification statement on the precinct 
116.33  summary statement.  The election judges shall receive no 
116.34  compensation for any time during which they intentionally fail 
116.35  to display the flag as required by this subdivision. 
116.36     (b) The election judges shall, immediately after displaying 
117.1   the flag pursuant to paragraph (a), post the following: 
117.2      (1) a "Vote Here" sign conspicuously near the flag, which 
117.3   must be of a size not less than two feet high by four feet wide, 
117.4   with letters printed in red in a font size of no less than 
117.5   576-point type, against a white background; and 
117.6      (2) within the building, if the polling place has more than 
117.7   one room, signs indicating by arrows the direction in which to 
117.8   proceed in order to reach the room containing the polling place. 
117.9      Sec. 49.  Minnesota Statutes 2004, section 204C.24, 
117.10  subdivision 1, is amended to read: 
117.11     Subdivision 1.  [INFORMATION REQUIREMENTS.] Precinct 
117.12  summary statements shall be submitted by the election judges in 
117.13  every precinct.  For state all elections, the election judges 
117.14  shall complete three or more copies of the summary statements, 
117.15  and each copy shall contain the following information for each 
117.16  kind of ballot:  
117.17     (a) the number of votes each candidate received or the 
117.18  number of yes and no votes on each question, the number of 
117.19  undervotes or partially blank ballots, and the number of 
117.20  overvotes or partially defective ballots with respect to each 
117.21  office or question; 
117.22     (b) the number of totally blank ballots, the number of 
117.23  totally defective ballots, the number of spoiled ballots, and 
117.24  the number of unused ballots; 
117.25     (c) the number of individuals who voted at the election in 
117.26  the precinct; 
117.27     (d) the number of voters registering on election day in 
117.28  that precinct; and 
117.29     (e) the signatures of the election judges who counted the 
117.30  ballots certifying that all of the ballots cast were properly 
117.31  piled, checked, and counted; and that the numbers entered by the 
117.32  election judges on the summary statements correctly show the 
117.33  number of votes cast for each candidate and for and against each 
117.34  question. 
117.35     At least two copies of the summary statement must be 
117.36  prepared for elections not held on the same day as the state 
118.1   elections. 
118.2      Sec. 50.  Minnesota Statutes 2004, section 204C.28, 
118.3   subdivision 1, is amended to read: 
118.4      Subdivision 1.  [COUNTY AUDITOR.] Every county auditor 
118.5   shall remain at the auditor's office to receive delivery of the 
118.6   returns, to permit public inspection of the summary statements, 
118.7   and to tabulate the votes until all have been tabulated and the 
118.8   results made known, or until 24 hours have elapsed since the end 
118.9   of the hours for voting, whichever occurs first.  Every county 
118.10  auditor shall keep a book in which, in the presence of the 
118.11  municipal clerk or the election judges who deliver the returns, 
118.12  the auditor shall make a record of all materials delivered, the 
118.13  time of delivery, and the names of the municipal clerk or 
118.14  election judges who made delivery.  The county auditor shall 
118.15  file the book and all envelopes containing ballots in a safe and 
118.16  secure place with envelope seals unbroken.  Access to the book 
118.17  and ballots shall be strictly controlled.  Accountability and a 
118.18  record of access shall be maintained by the county auditor 
118.19  during the period for contesting elections or, if a contest is 
118.20  filed, until the contest has been finally determined.  
118.21  Thereafter, the book shall be retained in the auditor's office 
118.22  for the same period as the ballots as provided in section 
118.23  204B.40. 
118.24     The county auditor shall file all envelopes containing 
118.25  ballots in a safe place with seals unbroken.  If the envelopes 
118.26  were previously opened by proper authority for examination or 
118.27  recount, the county auditor shall have the envelopes sealed 
118.28  again and signed by the individuals who made the inspection or 
118.29  recount.  The envelopes may be opened by the county canvassing 
118.30  board if necessary to procure election returns that the election 
118.31  judges inadvertently may have sealed in the envelopes with the 
118.32  ballots.  In that case, the envelopes shall be sealed again and 
118.33  signed in the same manner as otherwise provided in this 
118.34  subdivision.  
118.35     Sec. 51.  Minnesota Statutes 2004, section 204C.50, 
118.36  subdivision 1, is amended to read: 
119.1      Subdivision 1.  [SELECTION FOR REVIEW; NOTICE.] (a) 
119.2   Postelection review under this section must be conducted only on 
119.3   the election for president, senator or representative in 
119.4   Congress, constitutional offices, and legislative offices. 
119.5      (b) The Office of the Secretary of State shall, within 
119.6   three days after each state general election beginning in 2006, 
119.7   randomly select 80 precincts for postelection review as defined 
119.8   in this section.  The precincts must be selected so that an 
119.9   equal number of precincts are selected in each congressional 
119.10  district of the state.  Of the precincts in each congressional 
119.11  district, at least five must have had more than 500 votes cast, 
119.12  and at least two must have had fewer than 500 votes cast.  The 
119.13  secretary of state must promptly provide notices of which 
119.14  precincts are chosen to the election administration officials 
119.15  who are responsible for the conduct of elections in those 
119.16  precincts. 
119.17     (b) (c) One week before the state general election 
119.18  beginning in 2006, the secretary of state must post on the 
119.19  office Web site the date, time, and location at which precincts 
119.20  will be randomly chosen for review under this section.  The 
119.21  chair of each major political party may appoint a designee to 
119.22  observe the random selection process. 
119.23     Sec. 52.  Minnesota Statutes 2004, section 204C.50, 
119.24  subdivision 2, is amended to read: 
119.25     Subd. 2.  [SCOPE AND CONDUCT OF REVIEW.] Each review is 
119.26  limited to federal and state offices and must consist of at 
119.27  least the following: 
119.28     (a) The election officials immediately responsible for a 
119.29  precinct chosen for review must conduct the following review and 
119.30  submit the results in writing to the State Canvassing Board 
119.31  before it meets to canvass the election: 
119.32     (1) a hand tally of the paper ballots or electronic ballot 
119.33  marker record, of whatever kind used in that precinct, for each 
119.34  contested election; 
119.35     (2) a recount using the actual machine and software used on 
119.36  election day, if a precinct-count or central-count automated 
120.1   voting system was used; and 
120.2      (3) a comparison of the hand tally with the reported 
120.3   results for the precinct in the county canvassing board report, 
120.4   as well as the actual tape of any automated tabulation produced 
120.5   by any precinct-count or central-count optical scan equipment 
120.6   that may have been used to tabulate votes cast in that precinct. 
120.7      (b) The staff of the Office of the Secretary of State shall 
120.8   conduct or directly supervise a review of the procedures used by 
120.9   the election officials at all levels for a precinct chosen for 
120.10  review, including an inspection of the materials retained for 
120.11  the official 22-month retention period, such as the rosters, the 
120.12  incident log, and the ballots themselves.  The staff must submit 
120.13  a written report to the secretary of state before the next 
120.14  regularly scheduled meeting of the State Canvassing Board. 
120.15     Sec. 53.  Minnesota Statutes 2004, section 204D.03, 
120.16  subdivision 1, is amended to read: 
120.17     Subdivision 1.  [STATE PRIMARY.] (a) The state primary 
120.18  shall be held on the first Tuesday after the second Monday in 
120.19  September in each even-numbered year to select the nominees of 
120.20  the major political parties for partisan offices and the 
120.21  nominees for nonpartisan offices to be filled at the state 
120.22  general election, other than presidential electors.  
120.23     (b) If in any municipality or county there are no partisan 
120.24  or nonpartisan offices for which nominees must be selected at 
120.25  the state primary, no state primary shall be held in the 
120.26  municipality or county.  However, no later than 15 days after 
120.27  the close of filings, the municipal clerk or county auditor in 
120.28  such a municipality or county must post a notice in the office, 
120.29  and send a copy of the notice to the secretary of state, stating 
120.30  that no primary will be held in the municipality or county 
120.31  because there are no partisan or nonpartisan offices for which 
120.32  nominees must be selected in the municipality or county. 
120.33     Sec. 54.  Minnesota Statutes 2004, section 204D.14, 
120.34  subdivision 3, is amended to read: 
120.35     Subd. 3.  [UNCONTESTED JUDICIAL OFFICES.] Judicial 
120.36  offices for a specific court for which there is only one 
121.1   candidate filed must appear after all other judicial offices for 
121.2   that same court on the canary ballot. 
121.3      Sec. 55.  Minnesota Statutes 2004, section 204D.27, 
121.4   subdivision 5, is amended to read: 
121.5      Subd. 5.  [CANVASS; SPECIAL PRIMARY; STATE CANVASSING 
121.6   BOARD.] Not later than four days after the returns of the county 
121.7   canvassing boards are certified to the secretary of state, the 
121.8   State Canvassing Board shall complete its canvass of the special 
121.9   primary.  The secretary of state shall then promptly certify to 
121.10  the county auditors the names of the nominated individuals, 
121.11  prepare notices of nomination, and notify each nominee of the 
121.12  nomination.  
121.13     Sec. 56.  [205.135] [ELECTION REPORTING SYSTEM; CANDIDATE 
121.14  FILING.] 
121.15     Subdivision 1.  [EVEN-NUMBERED YEAR.] For regularly 
121.16  scheduled municipal elections held in an even-numbered year, the 
121.17  municipal clerk must provide the offices and questions to be 
121.18  voted on in the municipality and the list of candidates for each 
121.19  office to the county auditor for entry into the election 
121.20  reporting system provided by the secretary of state no later 
121.21  than 46 days prior to the election.  The county auditor must 
121.22  delegate, at the request of the municipality, the duty to enter 
121.23  the information into the system to the municipal clerk. 
121.24     Subd. 2.  [ODD-NUMBERED YEAR.] For regularly scheduled 
121.25  municipal elections held in an odd-numbered year, the municipal 
121.26  clerk or county auditor must enter the offices and questions to 
121.27  be voted on in the municipality and the list of candidates for 
121.28  each office into the election reporting system no later than 46 
121.29  days prior to the election. 
121.30     Sec. 57.  Minnesota Statutes 2004, section 205.175, 
121.31  subdivision 2, is amended to read: 
121.32     Subd. 2.  [METROPOLITAN AREA MUNICIPALITIES.] The governing 
121.33  body of a municipality which is located within a metropolitan 
121.34  county as defined by section 473.121 included in the definition 
121.35  of metropolitan area in section 200.02, subdivision 24, may 
121.36  designate the time during which the polling places will remain 
122.1   open for voting at the next succeeding and all subsequent 
122.2   municipal elections, provided that the polling places shall open 
122.3   no later than 10:00 a.m. and shall close no earlier than 8:00 
122.4   p.m.  The resolution shall remain in force until it is revoked 
122.5   by the municipal governing body. 
122.6      Sec. 58.  [205.187] [ELECTION REPORTING SYSTEM; PRECINCT 
122.7   VOTES.] 
122.8      Subdivision 1.  [EVEN-NUMBERED YEAR.] For regularly 
122.9   scheduled municipal elections held in an even-numbered year, the 
122.10  county auditor must enter the votes in each precinct for the 
122.11  questions and offices voted on in the municipal election into 
122.12  the election reporting system provided by the secretary of state.
122.13     Subd. 2.  [ODD-NUMBERED YEAR.] For regularly scheduled 
122.14  municipal elections held in an odd-numbered year, the municipal 
122.15  clerk or county auditor must enter the votes in each precinct 
122.16  for the offices and questions voted on in the municipality into 
122.17  the election reporting system provided by the secretary of state.
122.18     Sec. 59.  [205A.075] [ELECTION REPORTING SYSTEM; CANDIDATE 
122.19  FILING.] 
122.20     Subdivision 1.  [EVEN-NUMBERED YEAR.] For regularly 
122.21  scheduled school district elections held in an even-numbered 
122.22  year, the school district clerk must provide the offices and 
122.23  questions to be voted on in the school district and the list of 
122.24  candidates for each office to the county auditor for entry into 
122.25  the election reporting system provided by the secretary of state 
122.26  no later than 47 days prior to the election. 
122.27     Subd. 2.  [ODD-NUMBERED YEAR.] For regularly scheduled 
122.28  school district elections held in an odd-numbered year, the 
122.29  school district clerk or county auditor must enter the offices 
122.30  and questions to be voted on in the school district and the list 
122.31  of candidates for each office into the election reporting system 
122.32  provided by the secretary of state no later than 47 days prior 
122.33  to the election. 
122.34     Sec. 60.  [205A.076] [ELECTION REPORTING SYSTEM; PRECINCT 
122.35  VOTES.] 
122.36     Subdivision 1.  [EVEN-NUMBERED YEAR.] For regularly 
123.1   scheduled school district elections held in an even-numbered 
123.2   year, the county auditor must enter the votes in each precinct 
123.3   for the questions and offices voted on in the school district 
123.4   election into the election reporting system provided by the 
123.5   secretary of state. 
123.6      Subd. 2.  [ODD-NUMBERED YEAR.] For regularly scheduled 
123.7   school district elections held in an odd-numbered year, the 
123.8   school district clerk or county auditor must enter the votes in 
123.9   each precinct for the offices and questions voted on in the 
123.10  school district into the election reporting system provided by 
123.11  the secretary of state. 
123.12     Sec. 61.  Minnesota Statutes 2004, section 205A.09, 
123.13  subdivision 1, is amended to read: 
123.14     Subdivision 1.  [METROPOLITAN AREA SCHOOL DISTRICTS.] At a 
123.15  school district election in a school district located in whole 
123.16  or in part within a metropolitan county as defined by section 
123.17  473.121 included in the definition of metropolitan area in 
123.18  section 200.02, subdivision 24, the school board, by resolution 
123.19  adopted before giving notice of the election, may designate the 
123.20  time during which the polling places will remain open for voting 
123.21  at the next succeeding and all later school district elections.  
123.22  The polling places must open no later than 10:00 a.m. and close 
123.23  no earlier than 8:00 p.m.  The resolution shall remain in force 
123.24  until it is revoked by the school board. 
123.25     Sec. 62.  Minnesota Statutes 2004, section 206.56, 
123.26  subdivision 2, is amended to read: 
123.27     Subd. 2.  [AUTOMATIC TABULATING EQUIPMENT.] "Automatic 
123.28  tabulating equipment" includes apparatus machines, resident 
123.29  firmware, and programmable memory units necessary to optically 
123.30  scan, automatically examine, and count votes designated on 
123.31  ballot cards, and data processing machines which can be used for 
123.32  counting ballots and tabulating results.  
123.33     Sec. 63.  Minnesota Statutes 2004, section 206.56, 
123.34  subdivision 3, is amended to read: 
123.35     Subd. 3.  [BALLOT.] "Ballot" includes ballot cards and 
123.36  paper ballots, ballot cards, the paper ballot marked by an 
124.1   electronic marking device, and the data securely transmitted 
124.2   electronically to the optical scan machine in the precinct from 
124.3   a machine that creates an individual, discrete paper record of 
124.4   each vote.  
124.5      Sec. 64.  Minnesota Statutes 2004, section 206.56, 
124.6   subdivision 7, is amended to read: 
124.7      Subd. 7.  [COUNTING CENTER.] "Counting center" means a 
124.8   place selected by the governing body of a municipality where an 
124.9   a central count electronic voting system is used for the 
124.10  automatic processing and counting of ballots.  
124.11     Sec. 65.  Minnesota Statutes 2004, section 206.56, 
124.12  subdivision 8, is amended to read: 
124.13     Subd. 8.  [ELECTRONIC VOTING SYSTEM.] "Electronic voting 
124.14  system" means a system in which the voter records votes by means 
124.15  of marking a ballot, which is designed so that votes may be 
124.16  counted by automatic tabulating equipment at a counting 
124.17  center or in the precinct or polling place where the ballot is 
124.18  cast. 
124.19     An electronic voting system includes automatic tabulating 
124.20  equipment; nonelectronic ballot markers; electronic ballot 
124.21  markers, including electronic ballot display, audio ballot 
124.22  reader, and devices by which the voter will register the voter's 
124.23  voting intent; software used to program automatic tabulators and 
124.24  layout ballots; computer programs used to accumulate precinct 
124.25  results; ballots; secrecy folders; system documentation; and 
124.26  system testing results.  
124.27     Sec. 66.  Minnesota Statutes 2004, section 206.56, 
124.28  subdivision 9, is amended to read: 
124.29     Subd. 9.  [MANUAL MARKING DEVICE.] "Manual marking device" 
124.30  means any approved device for directly marking a ballot by hand 
124.31  with ink, pencil, or other substance which will enable the 
124.32  ballot to be tabulated by means of automatic tabulating 
124.33  equipment.  
124.34     Sec. 67.  Minnesota Statutes 2004, section 206.56, is 
124.35  amended by adding a subdivision to read: 
124.36     Subd. 9a.  [ELECTRONIC BALLOT MARKER.] "Electronic ballot 
125.1   marker" means equipment that is part of an electronic voting 
125.2   system that uses an electronic ballot display or audio ballot 
125.3   reader to:  (1) mark a nonelectronic ballot with votes selected 
125.4   by a voter; or (2) securely transmit a ballot to the optical 
125.5   scan machine in the precinct from a machine that creates an 
125.6   individual, discrete paper record of each vote. 
125.7      Sec. 68.  Minnesota Statutes 2004, section 206.56, is 
125.8   amended by adding a subdivision to read: 
125.9      Subd. 9b.  [ASSISTIVE VOTING TECHNOLOGY.] "Assistive voting 
125.10  technology" means touch-activated screen, buttons, keypad, 
125.11  sip-and-puff input device, keyboard, earphones, or any other 
125.12  device used with an electronic ballot marker that assists voters 
125.13  to use an audio or electronic ballot display in order to select 
125.14  votes. 
125.15     Sec. 69.  Minnesota Statutes 2004, section 206.56, is 
125.16  amended by adding a subdivision to read: 
125.17     Subd. 9c.  [ELECTRONIC BALLOT DISPLAY.] "Electronic ballot 
125.18  display" means a graphic representation of a ballot on a 
125.19  computer monitor or screen on which a voter may make vote 
125.20  choices for candidates and questions for the purpose of marking 
125.21  a nonelectronic ballot or for the purpose of securely 
125.22  transmitting a ballot to the optical scan machine in the 
125.23  precinct from a machine that creates an individual, discrete 
125.24  paper record of each vote. 
125.25     Sec. 70.  Minnesota Statutes 2004, section 206.56, is 
125.26  amended by adding a subdivision to read: 
125.27     Subd. 9d.  [AUDIO BALLOT READER.] "Audio ballot reader" 
125.28  means an audio representation of a ballot that can be used with 
125.29  other assistive voting technology to permit a voter to mark 
125.30  votes on a nonelectronic ballot or to securely transmit a ballot 
125.31  to the optical scan machine in the precinct from a machine that 
125.32  creates an individual, discrete paper record of each vote using 
125.33  an electronic ballot marker. 
125.34     Sec. 71.  Minnesota Statutes 2004, section 206.57, 
125.35  subdivision 1, is amended to read: 
125.36     Subdivision 1.  [EXAMINATION AND REPORT BY SECRETARY OF 
126.1   STATE; APPROVAL.] A vendor of an electronic voting system may 
126.2   apply to the secretary of state to examine the system and to 
126.3   report as to its compliance with the requirements of law and as 
126.4   to its accuracy, durability, efficiency, and capacity to 
126.5   register the will of voters.  The secretary of state or a 
126.6   designee shall examine the system submitted and file a report on 
126.7   it in the Office of the Secretary of State.  Examination is not 
126.8   required of every individual machine or counting device, but 
126.9   only of each type of electronic voting system before its 
126.10  adoption, use, or purchase and before its continued use after 
126.11  significant changes have been made in an approved system.  The 
126.12  examination must include the ballot programming,; electronic 
126.13  ballot marking, including all assistive technologies intended to 
126.14  be used with the system; vote counting,; and vote accumulation 
126.15  functions of each voting system. 
126.16     If the report of the secretary of state or the secretary's 
126.17  designee concludes that the kind of system examined complies 
126.18  with the requirements of sections 206.55 to 206.90 and can be 
126.19  used safely, the system shall be deemed approved by the 
126.20  secretary of state, and may be adopted and purchased for use at 
126.21  elections in this state.  A voting system not approved by the 
126.22  secretary of state may not be used at an election in this 
126.23  state.  The secretary of state may adopt permanent rules 
126.24  consistent with sections 206.55 to 206.90 relating to the 
126.25  examination and use of electronic voting systems.  
126.26     Sec. 72.  Minnesota Statutes 2004, section 206.57, 
126.27  subdivision 5, is amended to read: 
126.28     Subd. 5.  [VOTING SYSTEM FOR DISABLED VOTERS.] In federal 
126.29  and state elections held after December 31, 2005, and in county, 
126.30  municipal, and school district elections held after December 31, 
126.31  2007, the voting method used in each polling place must include 
126.32  a voting system that is accessible for individuals with 
126.33  disabilities, including nonvisual accessibility for the blind 
126.34  and visually impaired in a manner that provides the same 
126.35  opportunity for access and participation, including privacy and 
126.36  independence, as for other voters. 
127.1      Sec. 73.  Minnesota Statutes 2004, section 206.57, is 
127.2   amended by adding a subdivision to read: 
127.3      Subd. 7.  [ELECTION ASSISTANCE COMMISSION STANDARDS.] If, 
127.4   prior to January 1, 2006, the federal Election Assistance 
127.5   Commission has not established standards for an electronic 
127.6   ballot marker or other voting system component that is required 
127.7   to enable a voting system to meet the requirements of 
127.8   subdivision 5, the secretary of state may certify the voting 
127.9   system on an experimental basis pending the completion of 
127.10  federal standards, notwithstanding subdivision 6.  Within two 
127.11  years after the Election Assistance Commission issues standards 
127.12  for a voting system component used in a voting system authorized 
127.13  under this subdivision, the secretary of state must review or 
127.14  reexamine the voting system to determine whether the system 
127.15  conforms to federal standards. 
127.16     Sec. 74.  Minnesota Statutes 2004, section 206.58, 
127.17  subdivision 1, is amended to read: 
127.18     Subdivision 1.  [MUNICIPALITIES.] (a) The governing body of 
127.19  a municipality, at a regular meeting or at a special meeting 
127.20  called for the purpose, may must provide for the use of an at 
127.21  least one electronic voting system that conforms to the 
127.22  requirements of section 301(a)(3)(B) of the Help America Vote 
127.23  Act, Public Law 107-252, in one or more precincts each polling 
127.24  place and at all elections in the precincts, subject to approval 
127.25  by the county auditor.  This paragraph applies to federal and 
127.26  state elections held after December 31, 2005, and to county, 
127.27  municipal, and school district elections held after December 31, 
127.28  2007. 
127.29     (b) The governing body shall disseminate information to the 
127.30  public about the use of a new voting system at least 60 days 
127.31  prior to the election and shall provide for instruction of 
127.32  voters with a demonstration voting system in a public place for 
127.33  the six weeks immediately prior to the first election at which 
127.34  the new voting system will be used.  
127.35     (c) No system may be adopted or used unless it has been 
127.36  approved by the secretary of state pursuant to section 206.57. 
128.1      Sec. 75.  [206.585] [STATE VOTING SYSTEMS CONTRACTS.] 
128.2      The secretary of state shall establish a working group 
128.3   including representatives of county auditors, municipal clerks, 
128.4   and members of the disabilities community to assist in 
128.5   developing a request for proposals and subsequent state voting 
128.6   systems contracts.  Each contract should, if practical, include 
128.7   provisions for maintenance of the equipment purchased.  Counties 
128.8   and municipalities may purchase voting systems and obtain 
128.9   related election services from the state contracts.  The voting 
128.10  systems contracts shall address precinct-based optical scan 
128.11  voting equipment, ballot marking equipment for persons with 
128.12  disabilities and other voters, and assistive voting machines 
128.13  that combine voting methods used for persons with disabilities 
128.14  with precinct-based optical scan voting machines.  
128.15     [EFFECTIVE DATE.] This section is effective the day 
128.16  following final enactment. 
128.17     Sec. 76.  Minnesota Statutes 2004, section 206.61, 
128.18  subdivision 4, is amended to read: 
128.19     Subd. 4.  [ORDER OF CANDIDATES.] On the "State Partisan 
128.20  Primary Ballot" prepared for primary elections, and on the white 
128.21  ballot prepared for the general election, the order of the names 
128.22  of nominees or names of candidates for election shall be the 
128.23  same as required for paper ballots.  More than one column or row 
128.24  may be used for the same office or party.  Electronic ballot 
128.25  display and audio ballot readers must conform to the candidate 
128.26  order on the optical scan ballot used in the precinct. 
128.27     Sec. 77.  Minnesota Statutes 2004, section 206.61, 
128.28  subdivision 5, is amended to read: 
128.29     Subd. 5.  [ALTERNATION.] The provisions of the election 
128.30  laws requiring the alternation of names of candidates must be 
128.31  observed as far as practicable by changing the order of the 
128.32  names on an electronic voting system in the various precincts so 
128.33  that each name appears on the machines or marking devices used 
128.34  in a municipality substantially an equal number of times in the 
128.35  first, last, and in each intermediate place in the list or group 
128.36  in which they belong.  However, the arrangement of candidates' 
129.1   names must be the same on all voting systems used in the same 
129.2   precinct.  If the number of names to be alternated exceeds the 
129.3   number of precincts, the election official responsible for 
129.4   providing the ballots, in accordance with subdivision 1, shall 
129.5   determine by lot the alternation of names. 
129.6      If an electronic ballot marker is used with a paper ballot 
129.7   that is not an optical scan ballot card, the manner of 
129.8   alternation of candidate names on the paper ballot must be as 
129.9   prescribed for optical scan ballots in this subdivision.  If a 
129.10  machine is used to securely transmit a ballot to the optical 
129.11  scan machine in the precinct from a machine that creates an 
129.12  individual, discrete paper record of each vote, the manner of 
129.13  alternation of candidate names on the transmitting machine must 
129.14  be as prescribed for optical scan ballots in this subdivision.  
129.15     Sec. 78.  Minnesota Statutes 2004, section 206.64, 
129.16  subdivision 1, is amended to read: 
129.17     Subdivision 1.  [GENERAL PROVISIONS FOR ELECTRONIC SYSTEM 
129.18  VOTING.] Each electronic voting system booth must be placed and 
129.19  protected so that it is accessible to only one voter at a time 
129.20  and is in full view of all the election judges and challengers 
129.21  at the polling place.  The election judges shall admit one 
129.22  individual at a time to each booth after determining that the 
129.23  individual is eligible to vote.  Voting by electronic voting 
129.24  system must be secret, except for voters who need request 
129.25  assistance.  A voter may remain inside the voting booth for 
129.26  three minutes the time reasonably required for the voter to 
129.27  complete the ballot.  A voter who refuses to leave the voting 
129.28  booth after a reasonable amount of time, but not less than three 
129.29  minutes, must be removed by the election judges. 
129.30     Sec. 79.  [206.65] [SYSTEMS REQUIRED IN POLLING PLACES; 
129.31  CO-LOCATION OF PRECINCTS.] 
129.32     In federal and state elections held after December 31, 
129.33  2005, and in county, municipal, and school district elections 
129.34  held after December 31, 2007, each polling place must be 
129.35  equipped with an electronic voting system equipped for 
129.36  individuals with disabilities.  Precincts that share a polling 
130.1   place with other precincts pursuant to section 204B.14, 
130.2   subdivision 4, may share voting equipment.  Notwithstanding 
130.3   section 204B.14, upon written request to and approval by the 
130.4   secretary of state, the responsible municipal clerks may 
130.5   co-locate noncontiguous precincts located in one or more 
130.6   counties into one convenient polling place.  To the extent that 
130.7   an election includes offices for more than one jurisdiction, 
130.8   operating costs are to be allocated among those jurisdictions. 
130.9      For the purposes of this section, "operating costs" include 
130.10  actual county and municipal costs for hardware maintenance, 
130.11  election day technical support, software licensing, system 
130.12  programming, voting system testing, training of county and 
130.13  municipal staff in the use of the assistive voting systems, 
130.14  transportation of the assistive voting systems to and from the 
130.15  polling places, and storage of the assistive voting systems 
130.16  between elections.  
130.17     [EFFECTIVE DATE.] This section is effective the day 
130.18  following final enactment. 
130.19     Sec. 80.  Minnesota Statutes 2004, section 206.80, is 
130.20  amended to read: 
130.21     206.80 [ELECTRONIC VOTING SYSTEMS.] 
130.22     (a) An electronic voting system may not be employed unless 
130.23  it: 
130.24     (1) permits every voter to vote in secret; 
130.25     (2) permits every voter to vote for all candidates and 
130.26  questions for whom or upon which the voter is legally entitled 
130.27  to vote; 
130.28     (3) provides for write-in voting when authorized; 
130.29     (4) rejects by means of the automatic tabulating 
130.30  equipment automatically, except as provided in section 206.84 
130.31  with respect to write-in votes, all votes for an office or 
130.32  question when the number of votes cast on it exceeds the number 
130.33  which the voter is entitled to cast; 
130.34     (5) permits a voter at a primary election to select 
130.35  secretly the party for which the voter wishes to vote; and 
130.36     (6) rejects, by means of the automatic tabulating 
131.1   equipment, automatically all votes cast in a primary election by 
131.2   a voter when the voter votes for candidates of more than one 
131.3   party.; and 
131.4      (7) provides every voter an opportunity to electronically 
131.5   verify votes and to change votes or correct any error before the 
131.6   voter's ballot is cast and counted, produces either a permanent 
131.7   paper record or a paper ballot that is then cast by the voter 
131.8   that is preserved as an official record available for use in any 
131.9   recount. 
131.10     (b) An electronic voting system purchased on or after the 
131.11  effective date of this section may not be employed unless it 
131.12  accepts and tabulates, in the precinct or at a counting center, 
131.13  a marked optical scan ballot or creates a marked optical scan 
131.14  ballot that can be tabulated in the precinct or at a counting 
131.15  center by an optical scan machine certified for use in this 
131.16  state, or is a machine that securely transmits a vote 
131.17  electronically to an optical scan machine in the precinct while 
131.18  creating a paper record of each vote.  
131.19     [EFFECTIVE DATE.] This section is effective the day 
131.20  following final enactment. 
131.21     Sec. 81.  Minnesota Statutes 2004, section 206.81, is 
131.22  amended to read: 
131.23     206.81 [ELECTRONIC VOTING SYSTEMS; EXPERIMENTAL USE.] 
131.24     (a) The secretary of state may approve certify an 
131.25  electronic voting system for experimental use at an election 
131.26  prior to its approval for general use. 
131.27     (b) The secretary of state must approve one or more direct 
131.28  recording electronic voting systems for experimental use at an 
131.29  election before their approval for general use and may impose 
131.30  restrictions on their use.  At least one voting system approved 
131.31  under this paragraph must permit sighted persons to vote and at 
131.32  least one system must permit a blind or visually impaired voter 
131.33  to cast a ballot independently and privately.  
131.34     (c) Experimental use must be observed by the secretary of 
131.35  state or the secretary's designee and the results observed must 
131.36  be considered at any subsequent proceedings for approval for 
132.1   general use. 
132.2      (d) (c) The secretary of state may adopt rules consistent 
132.3   with sections 206.55 to 206.90 relating to experimental use.  
132.4   The extent of experimental use must be determined by the 
132.5   secretary of state. 
132.6      Sec. 82.  Minnesota Statutes 2004, section 206.82, 
132.7   subdivision 1, is amended to read: 
132.8      Subdivision 1.  [PROGRAM.] A program or programs for use in 
132.9   an election conducted by means of an electronic voting system or 
132.10  using an electronic ballot marker shall be prepared at the 
132.11  direction of the county auditor or municipal clerk who is 
132.12  responsible for the conduct of the election and shall be 
132.13  independently verified by a competent person designated by that 
132.14  official.  The term "competent person" as used in this section 
132.15  means a person who can demonstrate knowledge as a computer 
132.16  programmer and who is other than and wholly independent of any 
132.17  person operating or employed by the counting center or the 
132.18  corporation or other preparer of the program.  A test deck 
132.19  prepared by a competent person shall be used for independent 
132.20  verification of the program; it shall test the maximum digits 
132.21  used in totaling the returns and shall be usable by insertion 
132.22  during the tabulation process as well as prior to tabulation.  A 
132.23  test deck must also be prepared using the electronic ballot 
132.24  marker program and must also be used to verify that all valid 
132.25  votes counted by the vote tabulator may be selected using the 
132.26  electronic ballot marker.  The secretary of state shall adopt 
132.27  rules further specifying test procedures.  
132.28     Sec. 83.  Minnesota Statutes 2004, section 206.82, 
132.29  subdivision 2, is amended to read: 
132.30     Subd. 2.  [PLAN.] The municipal clerk in a municipality 
132.31  where an electronic voting system is used and the county auditor 
132.32  of a county in which an electronic voting system is used in more 
132.33  than one municipality and the county auditor of a county in 
132.34  which a counting center serving more than one municipality is 
132.35  located shall prepare a plan which indicates acquisition of 
132.36  sufficient facilities, computer time, and professional services 
133.1   and which describes the proposed manner of complying with 
133.2   section 206.80.  The plan must be signed, notarized, and 
133.3   submitted to the secretary of state more than 60 days before the 
133.4   first election at which the municipality uses an electronic 
133.5   voting system.  Prior to July 1 of each subsequent general 
133.6   election year, the clerk or auditor shall submit to the 
133.7   secretary of state notification of any changes to the plan on 
133.8   file with the secretary of state.  The secretary of state shall 
133.9   review each plan for its sufficiency and may request technical 
133.10  assistance from the Department of Administration or other agency 
133.11  which may be operating as the central computer authority.  The 
133.12  secretary of state shall notify each reporting authority of the 
133.13  sufficiency or insufficiency of its plan within 20 days of 
133.14  receipt of the plan.  The attorney general, upon request of the 
133.15  secretary of state, may seek a district court order requiring an 
133.16  election official to fulfill duties imposed by this subdivision 
133.17  or by rules promulgated pursuant to this section.  
133.18     Sec. 84.  Minnesota Statutes 2004, section 206.83, is 
133.19  amended to read: 
133.20     206.83 [TESTING OF VOTING SYSTEMS.] 
133.21     The official in charge of elections shall within 14 days 
133.22  prior to election day have the voting system tested to ascertain 
133.23  that the system will correctly mark or securely transmit to the 
133.24  optical scan machine in the precinct ballots using all methods 
133.25  supported by the system, including through assistive technology, 
133.26  and count the votes cast for all candidates and on all questions 
133.27  within 14 days prior to election day.  Public notice of the time 
133.28  and place of the test must be given at least two days in advance 
133.29  by publication once in official newspapers.  The test must be 
133.30  observed by at least two election judges, who are not of the 
133.31  same major political party, and must be open to representatives 
133.32  of the political parties, candidates, the press, and the 
133.33  public.  The test must be conducted by (1) processing a 
133.34  preaudited group of ballots punched or marked to record a 
133.35  predetermined number of valid votes for each candidate and on 
133.36  each question, and must include for each office one or more 
134.1   ballot cards which have votes in excess of the number allowed by 
134.2   law in order to test the ability of the voting system tabulator 
134.3   and electronic ballot marker to reject those votes; and (2) 
134.4   processing an additional test deck of ballots marked using the 
134.5   electronic ballot marker to be employed in the precinct, 
134.6   including ballots marked or securely transmitted to the optical 
134.7   scan machine in the precinct using the electronic ballot 
134.8   display, audio ballot reader, and each of the assistive voting 
134.9   peripheral devices used with the electronic ballot marker.  If 
134.10  any error is detected, the cause must be ascertained and 
134.11  corrected and an errorless count must be made before the voting 
134.12  system may be used in the election.  After the completion of the 
134.13  test, the programs used and ballot cards must be sealed, 
134.14  retained, and disposed of as provided for paper ballots. 
134.15     Sec. 85.  Minnesota Statutes 2004, section 206.84, 
134.16  subdivision 1, is amended to read: 
134.17     Subdivision 1.  [INSTRUCTION OF JUDGES, VOTERS.] The 
134.18  officials in charge of elections shall determine procedures to 
134.19  instruct election judges and voters in the use of electronic 
134.20  voting system manual marking devices and the electronic ballot 
134.21  marker, including assistive peripheral devices.  
134.22     Sec. 86.  Minnesota Statutes 2004, section 206.84, 
134.23  subdivision 3, is amended to read: 
134.24     Subd. 3.  [BALLOTS.] The ballot information must be in the 
134.25  same order provided for paper ballots, except that the 
134.26  information may be in vertical or horizontal rows, or on a 
134.27  number of separate pages.  The secretary of state shall provide 
134.28  by rule for standard ballot formats for electronic voting 
134.29  systems.  Electronic ballot displays and audio ballot readers 
134.30  shall be in the order provided for on the optical scan ballot.  
134.31  Electronic ballot displays may employ zooms or other devices as 
134.32  assistive voting technology.  Audio ballot readers may employ 
134.33  rewinds or audio cues as assistive voting technology.  
134.34     Ballot cards may contain special printed marks and holes as 
134.35  required for proper positioning and reading of the ballots by 
134.36  electronic vote counting equipment.  Ballot cards must contain 
135.1   an identification of the precinct for which they have been 
135.2   prepared which can be read visually and which can be tabulated 
135.3   by the automatic tabulating equipment. 
135.4      Sec. 87.  Minnesota Statutes 2004, section 206.84, 
135.5   subdivision 6, is amended to read: 
135.6      Subd. 6.  [DUTIES OF OFFICIAL IN CHARGE.] The official in 
135.7   charge of elections in each municipality where an electronic 
135.8   voting system is used shall have the voting systems put in 
135.9   order, set, adjusted, and made ready for voting when delivered 
135.10  to the election precincts.  The official shall also provide each 
135.11  precinct with a container for transporting ballot cards to the 
135.12  counting location after the polls close.  The container shall be 
135.13  of sturdy material to protect the ballots from all reasonably 
135.14  foreseeable hazards including auto collisions.  The election 
135.15  judges shall meet at the polling place at least one hour before 
135.16  the time for opening the polls.  Before the polls open the 
135.17  election judges shall compare the ballot cards used with the 
135.18  sample ballots, electronic ballot displays, and audio ballot 
135.19  reader furnished to see that the names, numbers, and letters on 
135.20  both agree and shall certify to that fact on forms provided for 
135.21  the purpose.  The certification must be filed with the election 
135.22  returns.  
135.23     Sec. 88.  [206.845] [BALLOT RECORDING AND COUNTING 
135.24  SECURITY.] 
135.25     Subdivision 1.  [PERMITTED AND PROHIBITED MODES OF 
135.26  TRANSFER.] Ballot recording and counting systems must be secured 
135.27  physically and electronically against unauthorized access.  
135.28  Except for wired connections within the polling place, ballot 
135.29  recording and counting systems must not be connected to, or 
135.30  operated on, directly or indirectly, any electronic network 
135.31  including internal office networks, LANs, the Internet, or the 
135.32  World Wide Web.  Wireless communications may not be used in any 
135.33  way in a vote recording or vote counting system.  Wireless, 
135.34  device-to-device capability is not allowed.  No connection by 
135.35  modem is allowed. 
135.36     Transfer of information from the ballot recording or 
136.1   counting system to another system for network or broadcast must 
136.2   be made by disk, tape, or other physical means of communication 
136.3   other than direct or indirect electronic connection of the vote 
136.4   recording or vote counting system. 
136.5      Subd. 2.  [TRANSMIT TO CENTRAL REPORTING LOCATION.] After 
136.6   the close of the polls, counties employing precinct ballot 
136.7   counting devices may telephonically or electronically transmit 
136.8   the accumulated tally for each device to a central reporting 
136.9   location.  The transmission must not be made using the precinct 
136.10  counting or recording device but must be made independently of 
136.11  that device.  Before making a telephonic or electronic 
136.12  transmission, the precinct election officer must create a 
136.13  printed record of the results of the election for that 
136.14  precinct.  During the canvassing period, the results transmitted 
136.15  telephonically or electronically must be considered unofficial 
136.16  until a complete reconciliation of the results has been 
136.17  performed. 
136.18     Sec. 89.  Minnesota Statutes 2004, section 206.85, 
136.19  subdivision 1, is amended to read: 
136.20     Subdivision 1.  [DUTIES OF RESPONSIBLE OFFICIAL.] The 
136.21  official in charge of elections in a municipality where an 
136.22  electronic voting system is used at a counting center must:  
136.23     (a) be present or personally represented throughout the 
136.24  counting center proceedings; 
136.25     (b) be responsible for acquiring sufficient facilities and 
136.26  personnel to ensure timely and lawful processing of votes; 
136.27     (c) be responsible for the proper training of all personnel 
136.28  participating in counting center proceedings and deputize all 
136.29  personnel who are not otherwise election judges; 
136.30     (d) maintain actual control over all proceedings and be 
136.31  responsible for the lawful execution of all proceedings in the 
136.32  counting center whether or not by experts; 
136.33     (e) be responsible for assuring the lawful retention and 
136.34  storage of ballots and read-outs; and 
136.35     (f) arrange for observation by the public and by 
136.36  candidates' representatives of counting center procedures by 
137.1   publishing the exact location of the counting center in a legal 
137.2   newspaper at least once during the week preceding the week of 
137.3   election and in the newspaper of widest circulation once on the 
137.4   day preceding the election, or once the week preceding the 
137.5   election if the newspaper is a weekly.  
137.6      The official may make arrangements with news reporters 
137.7   which permit prompt reporting of election results but which do 
137.8   not interfere with the timely and lawful completion of counting 
137.9   procedures.  
137.10     Sec. 90.  Minnesota Statutes 2004, section 206.90, 
137.11  subdivision 1, is amended to read: 
137.12     Subdivision 1.  [DEFINITION.] For the purposes of this 
137.13  section, "optical scan voting system" means an electronic voting 
137.14  system approved for use under sections 206.80 to 206.81 in which 
137.15  the voter records votes by marking with a pencil or other 
137.16  writing instrument device, including an electronic ballot 
137.17  marker, a ballot on which the names of candidates, office 
137.18  titles, party designation in a partisan primary or election, and 
137.19  a statement of any question accompanied by the words "Yes" and 
137.20  "No" are printed. 
137.21     Sec. 91.  Minnesota Statutes 2004, section 206.90, 
137.22  subdivision 4, is amended to read: 
137.23     Subd. 4.  [ABSENTEE VOTING.] An optical scan voting system 
137.24  may be used for absentee voting.  The county auditor may supply 
137.25  an appropriate marking instrument to the voter along with the 
137.26  ballot. 
137.27     Sec. 92.  Minnesota Statutes 2004, section 206.90, 
137.28  subdivision 5, is amended to read: 
137.29     Subd. 5.  [INSTRUCTION OF JUDGES, VOTERS.] In instructing 
137.30  judges and voters under section 206.84, subdivision 1, officials 
137.31  in charge of election precincts using optical scan voting 
137.32  systems shall include instruction on the proper mark for 
137.33  recording votes on ballot cards marked with a pencil or other 
137.34  writing instrument and the insertion by the voter of the ballot 
137.35  card into automatic tabulating equipment that examines and 
137.36  counts votes as the ballot card is deposited into the ballot box.
138.1      Officials shall include instruction on the insertion by the 
138.2   voter of the ballot card into an electronic ballot marker that 
138.3   can examine votes before the ballot card is deposited into the 
138.4   ballot box. 
138.5      Sec. 93.  Minnesota Statutes 2004, section 206.90, 
138.6   subdivision 6, is amended to read: 
138.7      Subd. 6.  [BALLOTS.] In precincts using optical scan voting 
138.8   systems, a single ballot card on which all ballot information is 
138.9   included must be printed in black ink on white colored material 
138.10  except that marks not to be read by the automatic tabulating 
138.11  equipment may be printed in another color ink.  
138.12     On the front of the ballot must be printed the words 
138.13  "Official Ballot" and the date of the election and lines for the 
138.14  initials of at least two election judges. 
138.15     When optical scan ballots are used, the offices to be 
138.16  elected must appear in the following order:  federal offices; 
138.17  state legislative offices; constitutional offices; proposed 
138.18  constitutional amendments; county offices and questions; 
138.19  municipal offices and questions; school district offices and 
138.20  questions; special district offices and questions; and judicial 
138.21  offices. 
138.22     On optical scan ballots, the names of candidates and the 
138.23  words "yes" and "no" for ballot questions must be printed as 
138.24  close to their corresponding vote targets as possible. 
138.25     The line on an optical scan ballot for write-in votes must 
138.26  contain the words "write-in, if any." 
138.27     If a primary ballot contains both a partisan ballot and a 
138.28  nonpartisan ballot, the instructions to voters must include a 
138.29  statement that reads substantially as follows:  "THIS BALLOT 
138.30  CARD CONTAINS A PARTISAN BALLOT AND A NONPARTISAN BALLOT.  ON 
138.31  THE PARTISAN BALLOT YOU ARE PERMITTED TO VOTE FOR CANDIDATES OF 
138.32  ONE POLITICAL PARTY ONLY."  If a primary ballot contains 
138.33  political party columns on both sides of the ballot, the 
138.34  instructions to voters must include a statement that reads 
138.35  substantially as follows:  "ADDITIONAL POLITICAL PARTIES ARE 
138.36  PRINTED ON THE OTHER SIDE OF THIS BALLOT.  VOTE FOR ONE 
139.1   POLITICAL PARTY ONLY."  At the bottom of each political party 
139.2   column on the primary ballot, the ballot must contain a 
139.3   statement that reads substantially as follows:  "CONTINUE VOTING 
139.4   ON THE NONPARTISAN BALLOT."  The instructions in section 
139.5   204D.08, subdivision 4, do not apply to optical scan partisan 
139.6   primary ballots.  Electronic ballot displays and audio ballot 
139.7   readers must follow the order of offices and questions on the 
139.8   optical scan or paper ballot used in the same precinct, or the 
139.9   sample ballot posted for that precinct. 
139.10     Sec. 94.  Minnesota Statutes 2004, section 206.90, 
139.11  subdivision 8, is amended to read: 
139.12     Subd. 8.  [DUTIES OF ELECTION OFFICIALS.] The official in 
139.13  charge of elections in each municipality where an optical scan 
139.14  voting system is used shall have the electronic ballot marker 
139.15  that examines and marks votes on ballot cards or the machine 
139.16  that securely transmits a ballot to the optical scan machine in 
139.17  the precinct and the automatic tabulating equipment that 
139.18  examines and counts votes as ballot cards are deposited into 
139.19  ballot boxes put in order, set, adjusted, and made ready for 
139.20  voting when delivered to the election precincts. 
139.21     Sec. 95.  Minnesota Statutes 2004, section 206.90, 
139.22  subdivision 9, is amended to read: 
139.23     Subd. 9.  [SPOILED BALLOT CARDS.] Automatic tabulating 
139.24  equipment and electronic ballot markers must be capable of 
139.25  examining a ballot card for defects and returning it to the 
139.26  voter before it is counted and deposited into the ballot box and 
139.27  must be programmed to return as a spoiled ballot a ballot card 
139.28  with votes for an office or question which exceed the number 
139.29  which the voter is entitled to cast and at a primary a ballot 
139.30  card with votes for candidates of more than one party. 
139.31     Sec. 96.  Minnesota Statutes 2004, section 208.03, is 
139.32  amended to read: 
139.33     208.03 [NOMINATION OF PRESIDENTIAL ELECTORS.] 
139.34     Presidential electors for the major political parties of 
139.35  this state shall be nominated by delegate conventions called and 
139.36  held under the supervision of the respective state central 
140.1   committees of the parties of this state.  On or before primary 
140.2   election day the chair of the major political party shall 
140.3   certify to the secretary of state the names of the persons 
140.4   nominated as presidential electors, the names of eight alternate 
140.5   presidential electors, and the names of the party candidates for 
140.6   president and vice-president. 
140.7      Sec. 97.  Minnesota Statutes 2004, section 208.04, 
140.8   subdivision 1, is amended to read: 
140.9      Subdivision 1.  [FORM OF PRESIDENTIAL BALLOTS.] When 
140.10  presidential electors and alternates are to be voted for, a vote 
140.11  cast for the party candidates for president and vice-president 
140.12  shall be deemed a vote for that party's electors and alternates 
140.13  as filed with the secretary of state.  The secretary of state 
140.14  shall certify the names of all duly nominated presidential and 
140.15  vice-presidential candidates to the county auditors of the 
140.16  counties of the state.  Each county auditor, subject to the 
140.17  rules of the secretary of state, shall cause the names of the 
140.18  candidates of each major political party and the candidates 
140.19  nominated by petition to be printed in capital letters, set in 
140.20  type of the same size and style as for candidates on the state 
140.21  white ballot, before the party designation.  To the left of, and 
140.22  on the same line with the names of the candidates for president 
140.23  and vice-president, near the margin, shall be placed a square or 
140.24  box, in which the voters may indicate their choice by marking an 
140.25  "X."  
140.26     The form for the presidential ballot and the relative 
140.27  position of the several candidates shall be determined by the 
140.28  rules applicable to other state officers.  The state ballot, 
140.29  with the required heading, shall be printed on the same piece of 
140.30  paper and shall be below the presidential ballot with a blank 
140.31  space between one inch in width. 
140.32     Sec. 98.  Minnesota Statutes 2004, section 208.05, is 
140.33  amended to read: 
140.34     208.05 [STATE CANVASSING BOARD.] 
140.35     The State Canvassing Board at its meeting on the second 
140.36  Tuesday after each state general election shall open and canvass 
141.1   the returns made to the secretary of state for presidential 
141.2   electors and alternates, prepare a statement of the number of 
141.3   votes cast for the persons receiving votes for these offices, 
141.4   and declare the person or persons receiving the highest number 
141.5   of votes for each office duly elected.  When it appears that 
141.6   more than the number of persons to be elected as presidential 
141.7   electors or alternates have the highest and an equal number of 
141.8   votes, the secretary of state, in the presence of the board 
141.9   shall decide by lot which of the persons shall be declared 
141.10  elected.  The governor shall transmit to each person declared 
141.11  elected a certificate of election, signed by the governor, 
141.12  sealed with the state seal, and countersigned by the secretary 
141.13  of state.  
141.14     Sec. 99.  Minnesota Statutes 2004, section 208.06, is 
141.15  amended to read: 
141.16     208.06 [ELECTORS TO MEET AT CAPITOL; FILLING OF VACANCIES.] 
141.17     The presidential electors and alternate presidential 
141.18  electors, before 12:00 M. on the day before that fixed by 
141.19  Congress for the electors to vote for president and 
141.20  vice-president of the United States, shall notify the governor 
141.21  that they are at the State Capitol and ready at the proper time 
141.22  to fulfill their duties as electors.  The governor shall deliver 
141.23  to the electors present a certificate of the names of all the 
141.24  electors.  If any elector named therein fails to appear before 
141.25  9:00 a.m. on the day, and at the place, fixed for voting for 
141.26  president and vice-president of the United States, an alternate, 
141.27  chosen from among the alternates by lot, shall be appointed to 
141.28  act for that elector.  If more than eight alternates are 
141.29  necessary, the electors present shall, in the presence of the 
141.30  governor, immediately elect by ballot a person to fill the 
141.31  vacancy.  If more than the number of persons required have the 
141.32  highest and an equal number of votes, the governor, in the 
141.33  presence of the electors attending, shall decide by lot which of 
141.34  those persons shall be elected. 
141.35     Sec. 100.  Minnesota Statutes 2004, section 208.07, is 
141.36  amended to read: 
142.1      208.07 [CERTIFICATE OF ELECTORS.] 
142.2      Immediately after the vacancies have been filled, the 
142.3   original electors and alternates present shall certify to the 
142.4   governor the names of the persons elected to complete their 
142.5   number, and the governor shall at once cause written notice to 
142.6   be given to each person elected to fill a vacancy.  The persons 
142.7   so chosen shall be presidential electors and shall meet and act 
142.8   with the other electors. 
142.9      Sec. 101.  Minnesota Statutes 2004, section 208.08, is 
142.10  amended to read: 
142.11     208.08 [ELECTORS TO MEET AT STATE CAPITOL.] 
142.12     The original, alternate, and substituted presidential 
142.13  electors, at 12:00 M., shall meet in the executive chamber at 
142.14  the State Capitol and shall perform all the duties imposed upon 
142.15  them as electors by the Constitution and laws of the United 
142.16  States and this state.  
142.17     Each elector, as a condition of having been chosen under 
142.18  the name of the party of a presidential and a vice-presidential 
142.19  candidate, is obligated to vote for those candidates.  The 
142.20  elector shall speak aloud or affirm in a nonverbal manner the 
142.21  name of the candidate for president and for vice-president for 
142.22  whom the elector is voting and then confirm that vote by written 
142.23  public ballot. 
142.24     If an elector fails to cast a ballot for the presidential 
142.25  or vice-presidential candidate of the party under whose name the 
142.26  elector was chosen, the elector's vote or abstention is 
142.27  invalidated and an alternate presidential elector, chosen by lot 
142.28  from among the alternates, shall cast a ballot in the name of 
142.29  the elector for the presidential and vice-presidential candidate 
142.30  of the party under whose name the elector was chosen.  The 
142.31  invalidation of an elector's vote or abstention on the ballot 
142.32  for president or vice-president does not apply if the 
142.33  presidential candidate under whose party's name the elector was 
142.34  chosen has without condition released the elector or has died or 
142.35  become mentally disabled. 
142.36     Sec. 102.  Minnesota Statutes 2004, section 211B.01, 
143.1   subdivision 3, is amended to read: 
143.2      Subd. 3.  [CANDIDATE.] "Candidate" means an individual who 
143.3   seeks nomination or election to a federal, statewide, 
143.4   legislative, judicial, or local office including special 
143.5   districts, school districts, towns, home rule charter and 
143.6   statutory cities, and counties, except candidates for president 
143.7   and vice-president of the United States. 
143.8      Sec. 103.  Minnesota Statutes 2004, section 358.11, is 
143.9   amended to read: 
143.10     358.11 [OATHS, WHERE FILED.] 
143.11     Except as otherwise provided by law, the oath required to 
143.12  be taken and subscribed by any person shall be filed as follows: 
143.13     (1) if that of an officer of the state, whether elective or 
143.14  appointive, executive, legislative, or judicial, with the 
143.15  secretary of state; 
143.16     (2) if of a county officer, or an officer chosen within or 
143.17  for any county, with the county auditor; 
143.18     (3) if of a city officer, with the clerk or recorder of the 
143.19  municipality; 
143.20     (4) if of a town officer, with the town clerk; 
143.21     (5) if of a school district officer, with the clerk of the 
143.22  district; 
143.23     (6) if of a person appointed by, or made responsible to, a 
143.24  court in any action or proceeding therein, with the court 
143.25  administrator of such court; 
143.26     (7) if that of a person appointed by any state, county, or 
143.27  other officer for a special service in connection with official 
143.28  duties, with such officer.  
143.29     If the person taking such oath be also required to give 
143.30  bond, the oath shall be attached to or endorsed upon such bond 
143.31  and filed therewith, in lieu of other filing. 
143.32     Sec. 104.  Minnesota Statutes 2004, section 447.32, 
143.33  subdivision 4, is amended to read: 
143.34     Subd. 4.  [CANDIDATES; BALLOTS; CERTIFYING ELECTION.] A 
143.35  person who wants to be a candidate for the hospital board shall 
143.36  file an affidavit of candidacy for the election either as member 
144.1   at large or as a member representing the city or town where the 
144.2   candidate resides.  The affidavit of candidacy must be filed 
144.3   with the city or town clerk not more than ten weeks 70 days nor 
144.4   less than eight weeks 56 days before the first Tuesday after the 
144.5   second first Monday in September November of the year in which 
144.6   the general election is held.  The city or town clerk must 
144.7   forward the affidavits of candidacy to the clerk of the hospital 
144.8   district or, for the first election, the clerk of the most 
144.9   populous city or town immediately after the last day of the 
144.10  filing period.  A candidate may withdraw from the election by 
144.11  filing an affidavit of withdrawal with the clerk of the district 
144.12  no later than 5:00 p.m. two days after the last day to file 
144.13  affidavits of candidacy. 
144.14     Voting must be by secret ballot.  The clerk shall prepare, 
144.15  at the expense of the district, necessary ballots for the 
144.16  election of officers.  Ballots must be printed on tan paper and 
144.17  prepared as provided in the rules of the secretary of state.  
144.18  The ballots must be marked and initialed by at least two judges 
144.19  as official ballots and used exclusively at the election.  Any 
144.20  proposition to be voted on may be printed on the ballot provided 
144.21  for the election of officers.  The hospital board may also 
144.22  authorize the use of voting systems subject to chapter 206.  
144.23  Enough election judges may be appointed to receive the votes at 
144.24  each polling place.  The election judges shall act as clerks of 
144.25  election, count the ballots cast, and submit them to the board 
144.26  for canvass.  
144.27     After canvassing the election, the board shall issue a 
144.28  certificate of election to the candidate who received the 
144.29  largest number of votes cast for each office.  The clerk shall 
144.30  deliver the certificate to the person entitled to it in person 
144.31  or by certified mail.  Each person certified shall file an 
144.32  acceptance and oath of office in writing with the clerk within 
144.33  30 days after the date of delivery or mailing of the 
144.34  certificate.  The board may fill any office as provided in 
144.35  subdivision 1 if the person elected fails to qualify within 30 
144.36  days, but qualification is effective if made before the board 
145.1   acts to fill the vacancy. 
145.2      Sec. 105.  [APPROPRIATIONS.] 
145.3      Subdivision 1.  [ASSISTIVE VOTING EQUIPMENT; OPERATING 
145.4   COSTS.] (a) $25,000,000 is appropriated from the Help America 
145.5   Vote Act account to the secretary of state for grants to 
145.6   counties to purchase electronic voting systems equipped for 
145.7   individuals with disabilities that meet the requirements of 
145.8   section 301(a) of the Help America Vote Act, Public Law 107-252, 
145.9   and Minnesota Statutes, sections 206.80, and 206.57, subdivision 
145.10  5, and have been certified by the secretary of state under 
145.11  Minnesota Statutes, section 206.57.  The secretary of state 
145.12  shall make a grant to each county in the amount of $6,100 times 
145.13  the number of precincts in the county as certified by the 
145.14  county, which must not be more than the number of precincts used 
145.15  by the county in the state general election of 2004; plus $6,100 
145.16  to purchase an electronic voting system to be used by the county 
145.17  auditor for absentee and mail balloting, until the $25,000,000 
145.18  is exhausted.  These funds may be used either for the purchase 
145.19  of ballot marking equipment for persons with disabilities and 
145.20  other voters, or assistive voting machines that combine voting 
145.21  methods used for persons with disabilities with precinct-based 
145.22  optical scan voting machines.  Any unused funds must be set 
145.23  aside in a segregated account for future purchases of voting 
145.24  equipment complying with the Help America Vote Act and Minnesota 
145.25  law. 
145.26     (b)(1) For the purposes of this paragraph, "operating 
145.27  costs" include actual county and municipal costs for hardware 
145.28  maintenance, election day technical support, software licensing, 
145.29  system programming, voting system testing, training of county or 
145.30  municipal staff in the use of the assistive voting system, 
145.31  transportation of the assistive voting systems to and from the 
145.32  polling places, and storage of the assistive voting systems 
145.33  between elections. 
145.34     (2) $2,500,000 is appropriated to the secretary of state 
145.35  for grants to counties to defray the operating costs of the 
145.36  assistive voting equipment.  Each county may submit a request 
146.1   for no more than $600 per polling place per year until the 
146.2   appropriation is exhausted. 
146.3      Subd. 2.  [OPTIC SCAN EQUIPMENT.] $6,000,000 is 
146.4   appropriated from the Help America Vote Act account to the 
146.5   secretary of state for grants to counties to purchase optical 
146.6   scan voting equipment.  Counties are eligible for these funds to 
146.7   the extent that they decide to purchase ballot marking machines 
146.8   and as a result do not have sufficient federal funds remaining 
146.9   to also purchase a compatible precinct-based optical scan 
146.10  machine or central count machine.  These grants will be 
146.11  allocated to counties at a rate of $3,000 per eligible precinct 
146.12  until the appropriation is exhausted with priority in the 
146.13  payment of grants to be given to counties currently using hand 
146.14  and central count voting systems and counties using 
146.15  precinct-count optical scan voting systems incompatible with 
146.16  assistive voting systems or ballot marking machines. 
146.17     Subd. 3.  [SECRETARY OF STATE ELECTION 
146.18  ADMINISTRATION.] $5,000,000 is appropriated from the Help 
146.19  America Vote Act account to the secretary of state for further 
146.20  development of the statewide voter registration system and for 
146.21  training of local election officials, education of the public, 
146.22  and other election administration improvements permitted by the 
146.23  Help America Vote Act.  
146.24     Subd. 4.  [SURPLUS VOTING EQUIPMENT TO BE MADE 
146.25  AVAILABLE.] (a) If any county or municipality purchases or 
146.26  receives new voting system equipment under this section, it must 
146.27  make the equipment being replaced, if any, available on a 
146.28  first-come, first-served basis at no charge for transfer to any 
146.29  other county or municipality which has not previously used that 
146.30  type or model of equipment.  A county receiving equipment under 
146.31  this subdivision must also make any equipment being replaced 
146.32  similarly available to any other county or municipality. 
146.33     (b) The secretary of state shall establish, for information 
146.34  only, a page on its Web site on which counties making equipment 
146.35  available pursuant to this subdivision must post the basic 
146.36  specifications of the equipment along with contact information 
147.1   for the staff person in the county or municipality responsible 
147.2   for the equipment.  All transfer transactions are strictly 
147.3   between and among the counties and municipalities. 
147.4      [EFFECTIVE DATE.] This section is effective the day 
147.5   following final enactment. 
147.6      Sec. 106.  [FEDERAL FUNDS FOR ACCESS BY DISABLED 
147.7   INDIVIDUALS.] 
147.8      The secretary of state is authorized to apply for funds 
147.9   pursuant to sections 261 to 265 of the Help America Vote Act, 
147.10  Public Law 107-252, to ensure access for individuals with 
147.11  disabilities.  No further appropriation by the legislature is 
147.12  required for the receipt of those funds from the federal 
147.13  Department of Health and Human Services or for the distribution 
147.14  to local units of government of those funds by the secretary of 
147.15  state for that purpose, notwithstanding contrary provisions in 
147.16  Laws 2003, First Special Session chapter 7, section 1. 
147.17     Sec. 107.  [LOCAL EQUIPMENT PLANS.] 
147.18     (a) The county auditor shall convene a working group of all 
147.19  city and town election officials in each county to create a 
147.20  local equipment plan.  The working group must continue to meet 
147.21  until the plan is completed, which must be no later than 
147.22  September 15, 2005; or 45 days after state certification of 
147.23  assistive voting systems, whichever is later.  The plan must:  
147.24     (1) contain procedures to implement voting systems as 
147.25  defined in Minnesota Statutes, section 206.80 in each polling 
147.26  location; 
147.27     (2) define who is responsible for any capital or operating 
147.28  costs related to election equipment not covered by federal money 
147.29  from the Help America Vote Act account; and 
147.30     (3) outline how the federal money from the Help America 
147.31  Vote Act account will be spent. 
147.32     (b) A county plan must provide funding to purchase either 
147.33  precinct-based optical scan voting equipment, or assistive 
147.34  voting machines that combine voting methods used for persons 
147.35  with disabilities with precinct-based optical scan voting 
147.36  machines for any precinct whose city or town requests it, if the 
148.1   requesting city or town agrees with the county on who will be 
148.2   responsible for operating and replacement costs related to the 
148.3   use of the precinct-based equipment. 
148.4      (c) The plan must be submitted to the secretary of state 
148.5   for review and comment.  The county board of commissioners must 
148.6   adopt the local equipment plan after a public hearing.  Money 
148.7   from the Help America Vote Act account may not be expended until 
148.8   the plan is adopted.  The county auditor shall file the adopted 
148.9   local equipment plan with the secretary of state. 
148.10     (d) To receive a grant under this section, the county must 
148.11  apply to the secretary of state on forms prescribed by the 
148.12  secretary of state and must set forth how the grant money will 
148.13  be spent pursuant to the plan.  A county may submit more than 
148.14  one grant application, so long as the appropriation remains 
148.15  available and the total amount granted to the county does not 
148.16  exceed the county's allocation.  
148.17     [EFFECTIVE DATE.] This section is effective the day 
148.18  following final enactment. 
148.19     Sec. 108.  [REPORT.] 
148.20     Each county receiving a grant under this article must 
148.21  report to the secretary of state by March 15, 2006, the amount 
148.22  spent for the purchase of each kind of electronic voting system 
148.23  and for operating costs of the systems purchased.  The secretary 
148.24  of state shall compile this information and report it to the 
148.25  legislature by April 15, 2006. 
148.26     Sec. 109.  [RANDOM AUDITS.] 
148.27     Notwithstanding Minnesota Statutes, section 10A.02, 
148.28  subdivision 9, the Campaign Finance and Public Disclosure Board 
148.29  must perform only random inspections of material filed with the 
148.30  board during the biennium ending June 30, 2007. 
148.31     Sec. 110.  [REPEALER.] 
148.32     Minnesota Statutes 2004, sections 204B.22, subdivision 2; 
148.33  and 204C.50, subdivision 7, are repealed. 
148.34     Minnesota Rules, parts 4501.0300, subparts 1 and 4; 
148.35  4501.0500, subpart 4; 4501.0600; 4503.0200, subpart 4; 
148.36  4503.0300, subpart 2; 4503.0400, subpart 2; 4503.0500, subpart 
149.1   9; and 4503.0800, subpart 1, are repealed. 
149.2                              ARTICLE 9 
149.3               PERIODIC STATE AND LOCAL ELECTION DATES 
149.4      Section 1.  [204D.035] [PERIODIC ELECTION DAY.] 
149.5      Subdivision 1.  [SHORT TITLE.] This section may be referred 
149.6   to as the "Periodic Election Day Act of 2005." 
149.7      Subd. 2.  [ELECTIONS COVERED.] This section applies to all 
149.8   state, county, municipal, school district, and any other 
149.9   political subdivision elections held in the state of Minnesota, 
149.10  and elections on ballot questions, except for (1) elections held 
149.11  to fill a vacancy in office and required by statute to be held 
149.12  sooner than the next day designated in subdivision 3, or (2) 
149.13  elections conducted by mail. 
149.14     Subd. 3.  [ELECTIONS ON DESIGNATED DAYS.] (a) 
149.15  Notwithstanding other law to the contrary, elections subject to 
149.16  subdivision 2 may be held only on the following days: 
149.17     (1) the fourth Tuesday in January; 
149.18     (2) the second Tuesday in March; 
149.19     (3) the third Tuesday in May; 
149.20     (4) the first Tuesday after the second Monday in September; 
149.21  and 
149.22     (5) the first Tuesday after the first Monday in November. 
149.23     (b) The time period in which a special election must be 
149.24  conducted under any other law or charter provision must be 
149.25  extended to conform to the requirements of this subdivision. 
149.26     Subd. 4.  [PRIMARY DATE IF NOT SPECIFIED.] If other law 
149.27  provides for a primary to take place for a particular office but 
149.28  does not specify the date of the primary, the primary may be 
149.29  held on one of the days specified in subdivision 3, paragraph 
149.30  (a), clauses (1) to (4).  The general election for the office 
149.31  must be held on the date listed in subdivision 3 that 
149.32  immediately follows the date chosen for the primary. 
149.33     Subd. 5.  [ELECTION TIMES AND POLLING PLACES.] An election 
149.34  held in a jurisdiction on one of the days specified in 
149.35  subdivision 3 must be held during the hours determined under 
149.36  section 204C.05.  The governing body of the municipality must 
150.1   set the polling place locations to be used for each precinct in 
150.2   all elections in any calendar year before the start of that 
150.3   calendar year. 
150.4      Subd. 6.  [APPLICABLE LAWS.] Except as otherwise provided 
150.5   by this section, Minnesota election law remains applicable to 
150.6   elections held on any of the days listed in subdivision 3. 
150.7      Sec. 2.  [EFFECTIVE DATE.] 
150.8      This article is effective January 1, 2006. 
150.9                              ARTICLE 10 
150.10                       CONFORMING AMENDMENTS 
150.11     Section 1.  Minnesota Statutes 2004, section 123B.63, 
150.12  subdivision 3, is amended to read: 
150.13     Subd. 3.  [CAPITAL PROJECT LEVY REFERENDUM.] A district may 
150.14  levy the local tax rate approved by a majority of the electors 
150.15  voting on the question to provide funds for an approved 
150.16  project.  The election must take place no more than five years 
150.17  before the estimated date of commencement of the project.  The 
150.18  referendum must be held on a date set by the board specified in 
150.19  section 204D.035, subdivision 3.  A referendum for a project not 
150.20  receiving a positive review and comment by the commissioner 
150.21  under section 123B.71 must be approved by at least 60 percent of 
150.22  the voters at the election.  The referendum may be called by the 
150.23  school board and may be held: 
150.24     (1) separately, before an election for the issuance of 
150.25  obligations for the project under chapter 475; or 
150.26     (2) in conjunction with an election for the issuance of 
150.27  obligations for the project under chapter 475; or 
150.28     (3) notwithstanding section 475.59, as a conjunctive 
150.29  question authorizing both the capital project levy and the 
150.30  issuance of obligations for the project under chapter 475.  Any 
150.31  obligations authorized for a project may be issued within five 
150.32  years of the date of the election. 
150.33     The ballot must provide a general description of the 
150.34  proposed project, state the estimated total cost of the project, 
150.35  state whether the project has received a positive or negative 
150.36  review and comment from the commissioner, state the maximum 
151.1   amount of the capital project levy as a percentage of net tax 
151.2   capacity, state the amount that will be raised by that local tax 
151.3   rate in the first year it is to be levied, and state the maximum 
151.4   number of years that the levy authorization will apply. 
151.5      The ballot must contain a textual portion with the 
151.6   information required in this section and a question stating 
151.7   substantially the following: 
151.8      "Shall the capital project levy proposed by the board of 
151.9   .......... School District No. .......... be approved?" 
151.10     If approved, the amount provided by the approved local tax 
151.11  rate applied to the net tax capacity for the year preceding the 
151.12  year the levy is certified may be certified for the number of 
151.13  years approved. 
151.14     In the event a conjunctive question proposes to authorize 
151.15  both the capital project levy and the issuance of obligations 
151.16  for the project, appropriate language authorizing the issuance 
151.17  of obligations must also be included in the question.  
151.18     The district must notify the commissioner of the results of 
151.19  the referendum. 
151.20     Sec. 2.  Minnesota Statutes 2004, section 126C.17, 
151.21  subdivision 11, is amended to read: 
151.22     Subd. 11.  [REFERENDUM DATE.] (a) Except for a referendum 
151.23  held under paragraph (b), any referendum under this section held 
151.24  on a day other than the first Tuesday after the first Monday in 
151.25  November must be conducted by mail in accordance with section 
151.26  204B.46.  Notwithstanding subdivision 9, paragraph (b), to the 
151.27  contrary, in the case of a referendum conducted by mail under 
151.28  this paragraph, the notice required by subdivision 9, paragraph 
151.29  (b), must be prepared and delivered by first-class mail at least 
151.30  20 days before the referendum. 
151.31     (b) In addition to the referenda allowed in subdivision 9, 
151.32  clause (a), the commissioner may grant authority to a district 
151.33  to hold a referendum on a different day if the district is in 
151.34  statutory operating debt and has an approved plan or has 
151.35  received an extension from the department to file a plan to 
151.36  eliminate the statutory operating debt.  A referendum must be 
152.1   held on a date specified in section 204D.035, subdivision 3.  
152.2      (c) The commissioner must approve, deny, or modify each 
152.3   district's request for a referendum levy on a different day 
152.4   within 60 days of receiving the request from a district. 
152.5      Sec. 3.  Minnesota Statutes 2004, section 204C.05, is 
152.6   amended by adding a subdivision to read: 
152.7      Subd. 1c.  [ELECTIONS; MUNICIPALITIES AND SCHOOL 
152.8   DISTRICTS.] The governing body of a municipality or school 
152.9   district may, by resolution, designate the hours during which 
152.10  the polling places will remain open for voting at the next 
152.11  succeeding and all later municipal or school district elections 
152.12  that are not held at the same time as the state primary or state 
152.13  general election.  All polling places must be open at least 
152.14  between the hours of 10:00 a.m. and 8:00 p.m.  The resolution 
152.15  remains in effect until revoked by the governing board or until 
152.16  a petition from voters is filed under this subdivision.  If a 
152.17  petition requesting longer voting hours for any election is 
152.18  signed by a number of voters equal to ten percent of the votes 
152.19  cast in the last municipal or school district general election, 
152.20  whichever applies, and filed with the appropriate municipal or 
152.21  school district clerk no later than 30 days before an election, 
152.22  the polling places for that election must open at 7:00 a.m. and 
152.23  close at 8:00 p.m.  The municipal or school district clerk must 
152.24  give ten days published and posted notice of the change in hours 
152.25  and notify the appropriate county auditors of the change. 
152.26     Sec. 4.  Minnesota Statutes 2004, section 205.10, 
152.27  subdivision 3, is amended to read: 
152.28     Subd. 3.  [PROHIBITION.] No A special election authorized 
152.29  under subdivision 1 may be held within 40 days after the state 
152.30  general election only on one of the dates specified in section 
152.31  204D.035, subdivision 3. 
152.32     Sec. 5.  [205.176] [VOTING HOURS.] 
152.33     In all municipal elections the hours for voting must be 
152.34  determined as provided in section 204C.05 except for an election 
152.35  at which only township offices are to be elected. 
152.36     Sec. 6.  Minnesota Statutes 2004, section 205A.05, 
153.1   subdivision 1, is amended to read: 
153.2      Subdivision 1.  [QUESTIONS.] Special elections must be held 
153.3   for a school district on a question on which the voters are 
153.4   authorized by law to pass judgment.  The school board may on its 
153.5   own motion call a special election to vote on any matter 
153.6   requiring approval of the voters of a district.  Upon petition 
153.7   of 50 or more voters of the school district or five percent of 
153.8   the number of voters voting at the preceding regular school 
153.9   district election, the school board shall by resolution call a 
153.10  special election to vote on any matter requiring approval of the 
153.11  voters of a district.  A question is carried only with the 
153.12  majority in its favor required by law.  The election officials 
153.13  for a special election are the same as for the most recent 
153.14  school district general election unless changed according to 
153.15  law.  Otherwise, special elections must be conducted and the 
153.16  returns made in the manner provided for the school district 
153.17  general election.  A special election may not be held during the 
153.18  30 days before and the 30 days after the state primary, during 
153.19  the 30 days before and the 40 days after the state general 
153.20  election.  In addition, a special election may not be held 
153.21  during the 20 days before and the 20 days after any regularly 
153.22  scheduled election of a municipality wholly or partially within 
153.23  the school district.  A special election under this subdivision 
153.24  must be held only on one of the dates specified in section 
153.25  204D.035, subdivision 3.  Notwithstanding any other law to the 
153.26  contrary, the time period in which a special election must be 
153.27  conducted under any other law may be extended by the school 
153.28  board to conform with the requirements of this subdivision. 
153.29     Sec. 7.  [205A.095] [HOURS FOR VOTING.] 
153.30     The hours for voting in school district elections must be 
153.31  determined as provided in section 204C.05. 
153.32     Sec. 8.  Minnesota Statutes 2004, section 373.40, 
153.33  subdivision 2, is amended to read: 
153.34     Subd. 2.  [APPLICATION OF ELECTION REQUIREMENT.] (a) Bonds 
153.35  issued by a county to finance capital improvements under an 
153.36  approved capital improvement plan are not subject to the 
154.1   election requirements of section 375.18 or 475.58.  The bonds 
154.2   must be approved by vote of at least three-fifths of the members 
154.3   of the county board.  In the case of a metropolitan county, the 
154.4   bonds must be approved by vote of at least two-thirds of the 
154.5   members of the county board. 
154.6      (b) Before issuance of bonds qualifying under this section, 
154.7   the county must publish a notice of its intention to issue the 
154.8   bonds and the date and time of a hearing to obtain public 
154.9   comment on the matter.  The notice must be published in the 
154.10  official newspaper of the county or in a newspaper of general 
154.11  circulation in the county.  The notice must be published at 
154.12  least 14, but not more than 28, days before the date of the 
154.13  hearing. 
154.14     (c) A county may issue the bonds only upon obtaining the 
154.15  approval of a majority of the voters voting on the question of 
154.16  issuing the obligations, if a petition requesting a vote on the 
154.17  issuance is signed by voters equal to five percent of the votes 
154.18  cast in the county in the last general election and is filed 
154.19  with the county auditor within 30 days after the public 
154.20  hearing.  The commissioner of revenue shall prepare a suggested 
154.21  form of the question to be presented at the election.  The 
154.22  election may be held only on one of the dates specified in 
154.23  section 204D.035, subdivision 3. 
154.24     Sec. 9.  Minnesota Statutes 2004, section 375.20, is 
154.25  amended to read: 
154.26     375.20 [BALLOT QUESTIONS.] 
154.27     If the county board may do an act, incur a debt, 
154.28  appropriate money for a purpose, or exercise any other power or 
154.29  authority, only if authorized by a vote of the people, the 
154.30  question may be submitted at a special or general election, by a 
154.31  resolution specifying the matter or question to be voted upon. 
154.32  If the question is to authorize the appropriation of money, 
154.33  creation of a debt, or levy of a tax, it shall state the 
154.34  amount.  Notice of the election shall be given as in the case of 
154.35  special elections.  If the question submitted is adopted, the 
154.36  board shall pass an appropriate resolution to carry it into 
155.1   effect.  In the election the form of the ballot shall be:  "In 
155.2   favor of (here state the substance of the resolution to be 
155.3   submitted), Yes ......  No......," with a square opposite each 
155.4   of the words "yes" and "no," in one of which the voter shall 
155.5   mark an "X" to indicate a choice.  The county board may call a 
155.6   special county election upon a question to be held within 60 
155.7   days on any date specified in section 204D.035, subdivision 3, 
155.8   after a resolution to that effect is adopted by the county 
155.9   board.  Upon the adoption of the resolution the county auditor 
155.10  shall post and publish notices of the election, as required by 
155.11  section 204D.22, subdivisions 2 and 3.  The election shall be 
155.12  conducted and the returns canvassed in the manner prescribed by 
155.13  sections 204D.20 to 204D.27, so far as practicable. 
155.14     Sec. 10.  Minnesota Statutes 2004, section 458.40, is 
155.15  amended to read: 
155.16     458.40 [MUST VOTE TO ISSUE BONDS IF CHARTER SAYS SO.] 
155.17     If a charter adopted under the Minnesota Constitution, 
155.18  article IV, section 36, article XI, section 4, or article XII, 
155.19  section 5, has a provision that requires the question of the 
155.20  issuance of bonds to be submitted to the electors, the provision 
155.21  prevails over sections 458.36 to 458.40.  The question must be 
155.22  submitted to voters on one of the dates specified in section 
155.23  204D.035, subdivision 3, notwithstanding any contrary provision 
155.24  in the charter regarding the date of submission. 
155.25     Sec. 11.  Minnesota Statutes 2004, section 465.82, 
155.26  subdivision 2, is amended to read: 
155.27     Subd. 2.  [CONTENTS OF PLAN.] The plan must state:  
155.28     (1) the specific cooperative activities the units will 
155.29  engage in during the first two years of the venture; 
155.30     (2) the steps to be taken to effect the merger of the 
155.31  governmental units, with completion no later than four years 
155.32  after the process begins; 
155.33     (3) the steps by which a single governing body will be 
155.34  created or, when the entire territory of a unit will be 
155.35  apportioned between or among two or more units contiguous to the 
155.36  unit that is to be apportioned, the steps to be taken by the 
156.1   governing bodies of the remaining units to provide for 
156.2   representation of the residents of the apportioned unit; 
156.3      (4) changes in services provided, facilities used, and 
156.4   administrative operations and staffing required to effect the 
156.5   preliminary cooperative activities and the final merger, and a 
156.6   two-, five-, and ten-year projection of expenditures for each 
156.7   unit if it combined and if it remained separate; 
156.8      (5) treatment of employees of the merging governmental 
156.9   units, specifically including provisions for reassigning 
156.10  employees, dealing with exclusive representatives, and providing 
156.11  financial incentives to encourage early retirements; 
156.12     (6) financial arrangements for the merger, specifically 
156.13  including responsibility for debt service on outstanding 
156.14  obligations of the merging units; 
156.15     (7) one- and two-year impact analyses, prepared by the 
156.16  granting state agency at the request of the local government 
156.17  unit, of major state aid revenues received for each unit if it 
156.18  combined and if it remained separate, including an impact 
156.19  analysis, prepared by the Department of Revenue, of any property 
156.20  tax revenue implications associated with tax increment financing 
156.21  districts and fiscal disparities under chapter 276A or 473F 
156.22  resulting from the merger; 
156.23     (8) procedures for a referendum to be held on a date 
156.24  specified in section 204D.035, subdivision 3, before the 
156.25  proposed combination to approve combining the local government 
156.26  units, specifically stating whether a majority of those voting 
156.27  in each district proposed for combination or a majority of those 
156.28  voting on the question in the entire area proposed for 
156.29  combination is needed to pass the referendum; and 
156.30     (9) a time schedule for implementation. 
156.31     Notwithstanding clause (3) or any other law to the 
156.32  contrary, all current members of the governing bodies of the 
156.33  local government units that propose to combine under sections 
156.34  465.81 to 465.86 may serve on the initial governing body of the 
156.35  combined unit until a gradual reduction in membership is 
156.36  achieved by foregoing election of new members when terms expire 
157.1   until the number permitted by other law is reached. 
157.2      Sec. 12.  Minnesota Statutes 2004, section 465.84, is 
157.3   amended to read: 
157.4      465.84 [REFERENDUM.] 
157.5      During the first or second year of cooperation, a 
157.6   referendum on the question of combination must be conducted.  
157.7   The referendum must be on a date specified in section 204D.035, 
157.8   subdivision 3, and called by the governing bodies of the units 
157.9   that propose to combine.  The referendum must be conducted 
157.10  according to the Minnesota Election Law, as defined in section 
157.11  200.01.  If the referendum fails, the same question or a 
157.12  modified question may be submitted the following year.  If the 
157.13  referendum fails again, the same question may not be submitted.  
157.14  Referendums shall be conducted on the same date in all local 
157.15  government units. 
157.16     Sec. 13.  Minnesota Statutes 2004, section 469.053, 
157.17  subdivision 5, is amended to read: 
157.18     Subd. 5.  [REVERSE REFERENDUM.] A city may increase its 
157.19  levy for port authority purposes under subdivision 4 only as 
157.20  provided in this subdivision.  Its city council must first pass 
157.21  a resolution stating the proposed amount of levy increase.  The 
157.22  city must then publish the resolution together with a notice of 
157.23  public hearing on the resolution for two successive weeks in its 
157.24  official newspaper or, if none exists, in a newspaper of general 
157.25  circulation in the city.  The hearing must be held two to four 
157.26  weeks after the first publication.  After the hearing, the city 
157.27  council may decide to take no action or may adopt a resolution 
157.28  authorizing the proposed increase or a lesser increase.  A 
157.29  resolution authorizing an increase must be published in the 
157.30  city's official newspaper or, if none exists, in a newspaper of 
157.31  general circulation in the city.  The resolution is not 
157.32  effective if a petition requesting a referendum on the 
157.33  resolution is filed with the city clerk within 30 days of 
157.34  publication of the resolution.  The petition must be signed by 
157.35  voters equaling five percent of the votes cast in the city in 
157.36  the last general election.  The resolution is effective if 
158.1   approved by a majority of those voting on the question.  The 
158.2   commissioner of revenue shall prepare a suggested form of 
158.3   referendum question.  The referendum must be held at a special 
158.4   or general election before October 1 on a date specified in 
158.5   section 204D.035, subdivision 3, of the year for which the levy 
158.6   increase is proposed. 
158.7      Sec. 14.  Minnesota Statutes 2004, section 469.0724, is 
158.8   amended to read: 
158.9      469.0724 [GENERAL OBLIGATION BONDS.] 
158.10     The port authority of Cannon Falls or Redwood Falls must 
158.11  not proceed with the sale of general obligation tax supported 
158.12  bonds until the city council by resolution approves the proposed 
158.13  issuance.  The resolution must be published in the official 
158.14  newspaper.  If, within 30 days after the publication, a petition 
158.15  signed by voters equal in number to ten percent of the number of 
158.16  voters at the last regular city election is filed with the city 
158.17  clerk, the city and port authority must not issue the general 
158.18  obligation tax supported bonds until the proposition has been 
158.19  approved by a majority of the votes cast on the question at a 
158.20  regular or special election held on one of the dates specified 
158.21  in section 204D.035, subdivision 3. 
158.22     Sec. 15.  Minnesota Statutes 2004, section 469.190, 
158.23  subdivision 5, is amended to read: 
158.24     Subd. 5.  [REVERSE REFERENDUM.] If the county board passes 
158.25  a resolution under subdivision 4 to impose the tax, the 
158.26  resolution must be published for two successive weeks in a 
158.27  newspaper of general circulation within the unorganized 
158.28  territory, together with a notice fixing a date for a public 
158.29  hearing on the proposed tax. 
158.30     The hearing must be held not less than two weeks nor more 
158.31  than four weeks after the first publication of the notice.  
158.32  After the public hearing, the county board may determine to take 
158.33  no further action, or may adopt a resolution authorizing the tax 
158.34  as originally proposed or approving a lesser rate of tax.  The 
158.35  resolution must be published in a newspaper of general 
158.36  circulation within the unorganized territory.  The voters of the 
159.1   unorganized territory may request a referendum on the proposed 
159.2   tax by filing a petition with the county auditor within 30 days 
159.3   after the resolution is published.  The petition must be signed 
159.4   by voters who reside in the unorganized territory.  The number 
159.5   of signatures must equal at least five percent of the number of 
159.6   persons voting in the unorganized territory in the last general 
159.7   election.  If such a petition is timely filed, the resolution is 
159.8   not effective until it has been submitted to the voters residing 
159.9   in the unorganized territory at a general or special election 
159.10  held on one of the dates specified in section 204D.035, 
159.11  subdivision 3, and a majority of votes cast on the question of 
159.12  approving the resolution are in the affirmative.  The 
159.13  commissioner of revenue shall prepare a suggested form of 
159.14  question to be presented at the referendum.  
159.15     Sec. 16.  Minnesota Statutes 2004, section 475.521, 
159.16  subdivision 2, is amended to read: 
159.17     Subd. 2.  [ELECTION REQUIREMENT.] (a) Bonds issued by a 
159.18  city to finance capital improvements under an approved capital 
159.19  improvements plan are not subject to the election requirements 
159.20  of section 475.58.  The bonds are subject to the net debt limits 
159.21  under section 475.53.  The bonds must be approved by an 
159.22  affirmative vote of three-fifths of the members of a five-member 
159.23  city council.  In the case of a city council having more than 
159.24  five members, the bonds must be approved by a vote of at least 
159.25  two-thirds of the city council. 
159.26     (b) Before the issuance of bonds qualifying under this 
159.27  section, the city must publish a notice of its intention to 
159.28  issue the bonds and the date and time of the hearing to obtain 
159.29  public comment on the matter.  The notice must be published in 
159.30  the official newspaper of the city or in a newspaper of general 
159.31  circulation in the city.  Additionally, the notice may be posted 
159.32  on the official Web site, if any, of the city.  The notice must 
159.33  be published at least 14 but not more than 28 days before the 
159.34  date of the hearing. 
159.35     (c) A city may issue the bonds only after obtaining the 
159.36  approval of a majority of the voters voting on the question of 
160.1   issuing the obligations, if a petition requesting a vote on the 
160.2   issuance is signed by voters equal to five percent of the votes 
160.3   cast in the city in the last general election and is filed with 
160.4   the city clerk within 30 days after the public hearing.  The 
160.5   commissioner of revenue shall prepare a suggested form of the 
160.6   question to be presented at the election.  The election must be 
160.7   held on one of the dates specified in section 204D.035, 
160.8   subdivision 3. 
160.9      Sec. 17.  Minnesota Statutes 2004, section 475.58, 
160.10  subdivision 1, is amended to read: 
160.11     Subdivision 1.  [APPROVAL BY ELECTORS; EXCEPTIONS.] 
160.12  Obligations authorized by law or charter may be issued by any 
160.13  municipality upon obtaining the approval of a majority of the 
160.14  electors voting at a special or general election held on one of 
160.15  the dates specified in section 204D.035, subdivision 3, on the 
160.16  question of issuing the obligations, but an election shall not 
160.17  be required to authorize obligations issued: 
160.18     (1) to pay any unpaid judgment against the municipality; 
160.19     (2) for refunding obligations; 
160.20     (3) for an improvement or improvement program, which 
160.21  obligation is payable wholly or partly from the proceeds of 
160.22  special assessments levied upon property specially benefited by 
160.23  the improvement or by an improvement within the improvement 
160.24  program, or of taxes levied upon the increased value of property 
160.25  within a district for the development of which the improvement 
160.26  is undertaken, including obligations which are the general 
160.27  obligations of the municipality, if the municipality is entitled 
160.28  to reimbursement in whole or in part from the proceeds of such 
160.29  special assessments or taxes and not less than 20 percent of the 
160.30  cost of the improvement or the improvement program is to be 
160.31  assessed against benefited property or is to be paid from the 
160.32  proceeds of federal grant funds or a combination thereof, or is 
160.33  estimated to be received from such taxes within the district; 
160.34     (4) payable wholly from the income of revenue producing 
160.35  conveniences; 
160.36     (5) under the provisions of a home rule charter which 
161.1   permits the issuance of obligations of the municipality without 
161.2   election; 
161.3      (6) under the provisions of a law which permits the 
161.4   issuance of obligations of a municipality without an election; 
161.5      (7) to fund pension or retirement fund liabilities pursuant 
161.6   to section 475.52, subdivision 6; 
161.7      (8) under a capital improvement plan under section 373.40; 
161.8   and 
161.9      (9) under sections 469.1813 to 469.1815 (property tax 
161.10  abatement authority bonds), if the proceeds of the bonds are not 
161.11  used for a purpose prohibited under section 469.176, subdivision 
161.12  4g, paragraph (b). 
161.13     Sec. 18.  Minnesota Statutes 2004, section 475.58, 
161.14  subdivision 1a, is amended to read: 
161.15     Subd. 1a.  [RESUBMISSION LIMITATION.] If the electors do 
161.16  not approve the issuing of obligations at an election required 
161.17  by subdivision 1, the question of authorizing the obligations 
161.18  for the same purpose and in the same amount may not be submitted 
161.19  to the electors within a period of until a special or general 
161.20  election held on a date specified in section 204D.035, 
161.21  subdivision 3, and not sooner than 180 days from the date the 
161.22  election was held.  If the question of authorizing the 
161.23  obligations for the same purpose and in the same amount is not 
161.24  approved a second time it may not be submitted to the electors 
161.25  within a period of one year after the second election. 
161.26     Sec. 19.  Minnesota Statutes 2004, section 475.59, is 
161.27  amended to read: 
161.28     475.59 [MANNER OF SUBMISSION; NOTICE.] 
161.29     When the governing body of a municipality resolves to issue 
161.30  bonds for any purpose requiring the approval of the electors, it 
161.31  shall provide for submission of the proposition of their 
161.32  issuance at a general or special election held on a date 
161.33  specified in section 204D.035, subdivision 3, or at a town or 
161.34  common school district meeting.  Notice of such election or 
161.35  meeting shall be given in the manner required by law and shall 
161.36  state the maximum amount and the purpose of the proposed issue.  
162.1   In any school district, the school board or board of education 
162.2   may, according to its judgment and discretion, submit as a 
162.3   single ballot question or as two or more separate questions in 
162.4   the notice of election and ballots the proposition of their 
162.5   issuance for any one or more of the following, stated 
162.6   conjunctively or in the alternative:  acquisition or enlargement 
162.7   of sites, acquisition, betterment, erection, furnishing, 
162.8   equipping of one or more new schoolhouses, remodeling, 
162.9   repairing, improving, adding to, betterment, furnishing, 
162.10  equipping of one or more existing schoolhouses.  In any city, 
162.11  town, or county, the governing body may, according to its 
162.12  judgment and discretion, submit as a single ballot question or 
162.13  as two or more separate questions in the notice of election and 
162.14  ballots the proposition of their issuance, stated conjunctively 
162.15  or in the alternative, for the acquisition, construction, or 
162.16  improvement of any facilities at one or more locations. 
162.17     Sec. 20.  [REPEALER.] 
162.18     Minnesota Statutes 2004, sections 204C.05, subdivisions 1a 
162.19  and 1b; 205.175; and 205A.09, are repealed. 
162.20     Sec. 21.  [EFFECTIVE DATE.] 
162.21     This article is effective January 1, 2006.  Section 17 is 
162.22  effective for obligations authorized at an election held after 
162.23  January 1, 2006.