Engrossments
Introduction		Posted on 03/03/2005
1st Engrossment		Posted on 04/20/2005
2nd Engrossment		Posted on 04/21/2005
3rd Engrossment		Posted on 04/25/2005
4th Engrossment		Posted on 05/25/2005

Conference Committee Reports
CCR-HF1481		Posted on 05/23/2005

A bill for an act
relating to government operations; appropriating money
for the general legislative and administrative
expenses of state government; regulating state and
local government operations; modifying provisions
related to public employment; ratifying certain labor
agreements and compensation plans; regulating
elections and campaign finance; regulating Minneapolis
teacher pensions; modifying provisions related to the
military and veterans; providing conforming
amendments; amending Minnesota Statutes 2004, sections
3.011; 3.012; 3.02; 10A.01, subdivisions 5, 21, 23,
26; 10A.025, by adding a subdivision; 10A.071,
subdivision 3; 10A.08; 10A.20, subdivisions 2, 5, by
adding a subdivision; 10A.27, subdivision 1; 10A.28,
subdivision 2; 10A.31, subdivisions 1, 3, 4, 5, 6a;
11A.04; 11A.07, subdivisions 4, 5; 11A.24, subdivision
6; 13.635, by adding a subdivision; 14.19; 15.054;
15B.17, subdivision 1; 16A.103, by adding a
subdivision; 16A.1286, subdivisions 2, 3; 16A.152,
subdivision 2; 16A.1522, subdivision 1; 16A.281;
16B.52, subdivision 1; 16C.10, subdivision 7; 16C.144;
16C.16, subdivision 1, by adding a subdivision;
16C.23, by adding a subdivision; 43A.183; 43A.23,
subdivision 1; 123B.63, subdivision 3; 126C.17,
subdivision 11; 190.16, by adding a subdivision;
192.19; 192.261, subdivisions 1, 2; 192.501,
subdivision 2; 193.29, subdivision 3; 193.30; 193.31;
197.608, subdivision 5; 200.02, subdivisions 7, 23, by
adding a subdivision; 201.022, by adding a
subdivision; 201.061, subdivision 3; 201.071,
subdivision 1; 201.091, subdivision 5; 203B.01,
subdivision 3; 203B.02, subdivision 1; 203B.04,
subdivisions 1, 4, by adding a subdivision; 203B.07,
subdivision 2; 203B.11, subdivision 1; 203B.12,
subdivision 2; 203B.20; 203B.21, subdivisions 1, 3;
203B.24, subdivision 1; 204B.10, subdivision 6;
204B.14, subdivision 2; 204B.16, subdivisions 1, 5;
204B.18, subdivision 1; 204B.22, subdivision 3;
204B.27, subdivisions 1, 3; 204B.33; 204C.05,
subdivision 1a, by adding a subdivision; 204C.08,
subdivision 1; 204C.24, subdivision 1; 204C.28,
subdivision 1; 204C.50, subdivisions 1, 2; 204D.03,
subdivision 1; 204D.14, subdivision 3; 204D.27,
subdivision 5; 205.10, subdivision 3; 205.175,
subdivision 2; 205A.05, subdivision 1; 205A.09,
subdivision 1; 206.56, subdivisions 2, 3, 7, 8, 9, by
adding subdivisions; 206.57, subdivisions 1, 5, by
adding a subdivision; 206.58, subdivision 1; 206.61,
subdivisions 4, 5; 206.64, subdivision 1; 206.80;
206.81; 206.82, subdivisions 1, 2; 206.83; 206.84,
subdivisions 1, 3, 6; 206.85, subdivision 1; 206.90,
subdivisions 1, 4, 5, 6, 8, 9; 208.03; 208.04,
subdivision 1; 208.05; 208.06; 208.07; 208.08;
211B.01, subdivision 3; 240A.02, subdivision 3;
354A.08; 354A.12, subdivisions 3a, 3b; 358.11; 373.40,
subdivision 2; 375.20; 394.25, by adding a
subdivision; 447.32, subdivision 4; 458.40; 462.357,
by adding a subdivision; 465.82, subdivision 2;
465.84; 469.053, subdivision 5; 469.0724; 469.190,
subdivision 5; 471.345, by adding a subdivision;
471.975; 473.147, by adding a subdivision; 475.521,
subdivision 2; 475.58, subdivisions 1, 1a; 475.59;
507.093; 507.24, subdivision 2; Laws 2000, chapter
461, article 4, section 4, as amended; proposing
coding for new law in Minnesota Statutes, chapters 3;
4; 5; 6; 8; 10A; 14; 15; 15B; 16A; 16B; 16C; 43A; 196;
197; 204D; 205; 205A; 206; 298; 354A; 471; 507;
proposing coding for new law as Minnesota Statutes,
chapter 471B; repealing Minnesota Statutes 2004,
sections 16A.151, subdivision 5; 16A.30; 16B.33;
43A.11, subdivision 2; 197.455, subdivision 3;
204B.22, subdivision 2; 204C.05, subdivisions 1a, 1b;
204C.50, subdivision 7; 205.175; 205A.09; 240A.08;
354A.28; Minnesota Rules, parts 4501.0300, subparts 1,
4; 4501.0500, subpart 4; 4501.0600; 4503.0200, subpart
4; 4503.0300, subpart 2; 4503.0400, subpart 2;
4503.0500, subpart 9; 4503.0800, subpart 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

STATE GOVERNMENT APPROPRIATIONS

Section 1. new text begin STATE GOVERNMENT APPROPRIATIONS.
new text end

The sums shown in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or another fund named, to
the agencies and for the purposes specified in this act, to be
available for the fiscal years indicated for each purpose. The
figures "2006" and "2007," where used in this act, mean that the
appropriation or appropriations listed under them are available
for the year ending June 30, 2006, or June 30, 2007,
respectively.

APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007

Sec. 2. LEGISLATURE

Subdivision 1.

Total
Appropriation $ 55,340,000 $ 55,341,000

Summary by Fund

General 55,212,000 55,213,000

Health Care Access 128,000 128,000

The limitations on use of funds
specified in Minnesota Statutes,
section 16A.281, does not apply to any
entity in the legislative branch during
the biennium ending June 30, 2007.

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Senate

17,644,000 17,645,000

During the biennium ending June 30,
2007, the senate may not reimburse a
member for monthly housing expenses for
more than six months in a calendar year.

Subd. 3.

House of Representatives

25,343,000 25,343,000

Subd. 4.

Legislative
Coordinating Commission

12,353,000 12,353,000

Summary by Fund

General 12,225,000 12,225,000

Health Care Access 128,000 128,000

$360,000 the first year and $360,000
the second year are for public
information television, Internet,
Intranet, and other transmission of
legislative activities.

The Legislative Coordinating
Commission, in consultation with the
house of representatives and senate,
shall recommend the allocation of funds
within this subdivision.

On July 1, 2005, the commissioner of
finance shall transfer $1,764,000 of
unspent fees from the special revenue
fund dedicated for the Electronic Real
Estate Recording Task Force to the
general fund.

On July 1, 2005, the commissioner of
finance shall transfer $3,329,000 of
the senate accumulated carryforward
account balance to the general fund.

Sec. 3. GOVERNOR AND
LIEUTENANT GOVERNOR 3,497,000 3,496,000

This appropriation is to fund the
offices of the governor and lieutenant
governor.

$19,000 the first year and $19,000 the
second year are for necessary expenses
in the normal performance of the
governor's and lieutenant governor's
duties for which no other reimbursement
is provided.

Sec. 4. STATE AUDITOR 9,266,000 9,303,000

$1,010,000 the first year and
$1,047,000 the second year are to
restore audit practice division
staffing levels that were reduced in
the previous biennium.

Sec. 5. ATTORNEY GENERAL 24,677,000 24,718,000

Summary by Fund

General 22,270,000 22,295,000

State Government
Special Revenue 1,778,000 1,794,000

Environmental 145,000 145,000

Remediation 484,000 484,000

Sec. 6.

SECRETARY OF STATE 5,867,000 6,038,000

Sec. 7.

CAMPAIGN FINANCE AND
PUBLIC DISCLOSURE BOARD 694,000 694,000

Sec. 8.

INVESTMENT BOARD 217,000 217,000

Sec. 9. ADMINISTRATIVE HEARINGS 7,714,000 7,620,000

Summary by Fund

General 262,000 262,000

Workers'
Compensation 7,452,000 7,358,000

Fee rates charged during fiscal years
2006 and 2007 by the Administrative Law
Division of the Office of
Administrative Hearings shall be those
approved by the commissioner of finance
pursuant to Minnesota Statutes, section
16A.126.

Sec. 10. ADMINISTRATION

Subdivision 1.

Total
Appropriation 28,394,000 21,442,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Technology Services

1,803,000 1,803,000

Subd. 3.

State Facilities Services

17,598,000 10,946,000

$6,652,000 the first year is for
onetime funding of agency relocation
expenses. The Department of Human
Services will obtain federal
reimbursement for associated relocation
expenses. This amount, estimated to be
$1,870,000, will be deposited in the
general fund.

$7,888,000 the first year and
$7,888,000 the second year are for
office space costs of the legislature
and veterans organizations, for
ceremonial space, and for statutorily
free space.

$2,000,000 of the balance in the state
building code account in the state
government special revenue fund is
canceled to the general fund.

$2,500,000 the first year and
$2,500,000 the second year of the
balance in the facilities repair and
replacement account in the special
revenue fund is canceled to the general
fund.

Subd. 4.

State and Community Services

2,665,000 2,465,000

$458,000 the first year and $258,000
the second year are for the Land
Management Information Center.

Subd. 5.

Administrative Management Services

4,662,000 4,562,000

$100,000 the first year is for a
onetime grant to Assistive Technology
of Minnesota to administer a microloan
program to support purchase of
equipment and devices for people with
disabilities and their families and
employers, and to develop the Access to
Telework program.

Subd. 6.

Public Broadcasting

1,666,000 1,666,000

$951,000 the first year and $951,000
the second year are for matching grants
for public television.

$393,000 the first year and $393,000
the second year are for public
television equipment grants.

Equipment or matching grant allocations
shall be made after considering the
recommendations of the Minnesota Public
Television Association.

$17,000 the first year and $17,000 the
second year are for grants to the Twin
Cities regional cable channel.

$305,000 the first year and $305,000
the second year are for community
service grants to public educational
radio stations. The grants must be
allocated after considering the
recommendations of the Association of
Minnesota Public Educational Radio
Stations under Minnesota Statutes,
section 129D.14.

Sec. 11.

CAPITOL AREA ARCHITECTURAL
AND PLANNING BOARD 262,000 262,000

Sec. 12. FINANCE

Subdivision 1.

Total
Appropriation 14,808,000 14,808,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

State Financial Management

8,447,000 8,447,000

Subd. 3.

Information and
Management Services

6,361,000 6,361,000

Sec. 13.

EMPLOYEE RELATIONS 5,667,000 5,556,000

Sec. 14. REVENUE

Subdivision 1.

Total
Appropriation 99,911,000 102,635,000

Summary by Fund

General 95,869,000 98,593,000

Health Care Access 1,654,000 1,654,000

Highway User
Tax Distribution 2,097,000 2,097,000

Environmental 291,000 291,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Tax System Management

83,497,000 85,591,000

Summary by Fund

General 79,455,000 81,549,000

Health Care Access 1,654,000 1,654,000

Highway User
Tax Distribution 2,097,000 2,097,000

Environmental 291,000 291,000

$5,096,000 the first year and
$6,190,000 the second year are for
additional activities to identify and
collect tax liabilities from
individuals and businesses that
currently do not pay all taxes owed.
This initiative is expected to result
in new general fund revenues of
$42,800,000 for the biennium ending
June 30, 2007.

The department must report to the
chairs of the house of representatives
Ways and Means and senate Finance
Committees by March 1, 2006, and
January 15, 2007, on the following
performance indicators:

(1) the number of corporations
noncompliant with the corporate tax
system each year and the percentage and
dollar amounts of valid tax liabilities
collected;

(2) the number of businesses
noncompliant with the sales and use tax
system and the percentage and dollar
amount of the valid tax liabilities
collected; and

(3) the number of individual
noncompliant cases resolved and the
percentage and dollar amounts of valid
tax liabilities collected.

The reports must also identify
base-level expenditures and staff
positions related to compliance and
audit activities, including baseline
information as of January 1, 2004. The
information must be provided at the
budget activity level.

Subd. 3.

Accounts Receivable Management

16,414,000 17,044,000

$690,000 the first year and $1,320,000
the second year are for additional
activities to identify and collect tax
liabilities from individuals and
businesses that currently do not pay
all taxes owed. This initiative is
expected to result in new general
revenues of $25,200,000 for the
biennium ending June 30, 2007.

Subd. 4.

Reduction

The commissioner of finance must reduce
the total appropriation in this section
by the amount the commissioner
determines was spent on replacement of
modular walls in the collection
division. This reduction must be
allocated to the collection division.

Sec. 15. MILITARY AFFAIRS

Subdivision 1.

Total
Appropriation 17,589,000 17,589,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Maintenance of Training
Facilities

5,590,000 5,590,000

Subd. 3.

General Support

1,792,000 1,792,000

$35,000 each year is to assist in the
operation and staffing of the National
Guard Youth Camp at Camp Ripley. This
appropriation is contingent on a
dollar-for-dollar match from nonstate
sources.

This appropriation is for fiscal year
2006 and fiscal year 2007 only and
should not be added to the base.

Subd. 4.

Enlistment Incentives

10,207,000 10,207,000

$3,850,000 each year is to provide the
additional amount needed for full
funding of the tuition reimbursement
program in Minnesota Statutes, section
192.501, subdivision 2.

$1,500,000 each year is for
reenlistment bonuses under Minnesota
Statutes, section 192.501, subdivision
1b.

If appropriations for either year of
the biennium are insufficient, the
appropriation from the other year is
available. The appropriations for
enlistment incentives are available
until expended.

Sec. 16. VETERANS AFFAIRS 4,382,000 4,282,000

$250,000 the first year and $250,000
the second year are for outreach to
underserved veterans including, but not
limited to, veterans of color, female
veterans, veterans of limited financial
means, and the dependents and survivors
of those veterans. This is a onetime
appropriation and must not be added to
the base. The commissioner must report
to the legislature by January 15, 2007,
on the results of the initiative,
including additional federal benefits
obtained as a result of the initiative.

$100,000 the first year is for grants
to provide services to veterans for
vocational rehabilitation,
developmental disabilities, or chemical
dependency.

Sec. 17. VETERANS OF FOREIGN
WARS 85,000 85,000

For carrying out the provisions of Laws
1945, chapter 455.

Sec. 18.

MILITARY ORDER OF
THE PURPLE HEART 25,000 25,000

Sec. 19. DISABLED AMERICAN VETERANS 53,000 53,000

For carrying out the provisions of Laws
1941, chapter 425.

Sec. 20. GAMBLING CONTROL 2,800,000 2,800,000

This appropriation is from the special
revenue fund and is made from the
lawful gambling regulation account.

Sec. 21. RACING COMMISSION 674,000 835,000

(a) This appropriation is from the
special revenue fund and is made from
the racing and card playing regulation
account.

(b) $253,000 for the fiscal year ending
June 30, 2006, and $414,000 for the
fiscal year ending June 30, 2007, are
from the racing and card playing
regulation account in the special
revenue fund. The Racing Commission
must file monthly expenditure reports
with the commissioner of finance for
money spent from the appropriation in
this paragraph.

(c) The racing commission may not hire
new employees or enter into new
contracts with money subject to
paragraph (b) before resolution of the
petition for judicial review filed by
the Columbus Concerned Citizens Group.

Sec. 22. STATE LOTTERY

Notwithstanding Minnesota Statutes,
section 349A.10, the operating budget
must not exceed $26,700,000 in fiscal
year 2006 and $27,350,000 in fiscal
year 2007 and thereafter.

On July 1, 2005, the director of the
State Lottery shall transfer unclaimed
prize funds in the amount of $2,187,000
accumulated prior to July 1, 2003, to
the state treasury. The prize funds,
that had not otherwise been
transferred, will be credited
$1,312,000, or 60 percent, to the
general fund and $875,000, or 40
percent, to the environment and natural
resources trust fund.

Sec. 23. TORT CLAIMS 161,000 161,000

To be spent by the commissioner of
finance.

If the appropriation for either year is
insufficient, the appropriation for the
other year is available for it.

Sec. 24. MINNESOTA STATE
RETIREMENT SYSTEM 1,176,000 1,205,000

The amounts estimated to be needed for
each program are as follows:

(a) Legislators

783,000 802,000

Under Minnesota Statutes, sections
3A.03, subdivision 2; 3A.04,
subdivisions 3 and 4; and 3A.115.

(b) Constitutional Officers

393,000 403,000

Under Minnesota Statutes, sections
352C.031, subdivision 5; 352C.04,
subdivision 3; and 352C.09, subdivision
2.

If an appropriation in this section for
either year is insufficient, the
appropriation for the other year is
available for it.

Sec. 25. MINNEAPOLIS EMPLOYEES
RETIREMENT FUND 8,065,000 8,065,000

The amounts estimated to be needed
under Minnesota Statutes, section
422A.101, subdivision 3.

Sec. 26. MINNEAPOLIS TEACHERS
RETIREMENT FUND 15,800,000 15,800,000

The amounts estimated to be needed are
as follows:

(a) Special direct state aid to first
class city teachers retirement funds

13,300,000 13,300,000

Authorized under Minnesota Statutes,
section 354A.12, subdivisions 3a and 3c.

(b) Special direct state matching aid
to Minneapolis Teachers Retirement Fund

2,500,000 2,500,000

Authorized under Minnesota Statutes,
section 354A.12, subdivision 3b.

Sec. 27. ST. PAUL TEACHERS
RETIREMENT FUND 2,967,000 2,967,000

The amounts estimated to be needed for
special direct state aid to first class
city teachers retirement funds
authorized under Minnesota Statutes,
section 354A.12, subdivisions 3a and 3c.

Sec. 28.

COUNCIL ON BLACK
MINNESOTANS 275,000 275,000

Sec. 29.

COUNCIL ON
CHICANO/LATINO AFFAIRS 268,000 268,000

Sec. 30.

COUNCIL ON
ASIAN-PACIFIC MINNESOTANS 237,000 237,000

Sec. 31. SHARED SERVICES ENCOURAGED

During the biennium ending June 30,
2007, the Council on Black Minnesotans,
the Council on Asian-Pacific
Minnesotans, and the Council on Affairs
of Chicano/Latino people are encouraged
to increase sharing of administrative
staff and office space.

Sec. 32.

INDIAN AFFAIRS
COUNCIL 470,000 470,000

Sec. 33. GENERAL CONTINGENT
ACCOUNTS 600,000 500,000

Summary by Fund

General 100,000 ...,...,...

State Government
Special Revenue 400,000 400,000

Workers'
Compensation 100,000 100,000

The appropriations in this section may
only be spent with the approval of the
governor after consultation with the
Legislative Advisory Commission
pursuant to Minnesota Statutes, section
3.30.

If an appropriation in this section for
either year is insufficient, the
appropriation for the other year is
available for it.

If a contingent account appropriation
is made in one fiscal year, it should
be considered a biennial appropriation.

Sec. 34. GRANTS

Grants made from appropriations in this
act must be divided so that payments
are made at least four times each year.

Sec. 35. RACING COMMISSION APPROPRIATION

$156,000 is appropriated to the
Minnesota Racing Commission from the
racing and card playing regulation
account in the special revenue fund for
the fiscal year ending June 30, 2005.
$113,000 of this appropriation is from
the interim license fee authorized by
Laws 2003, First Special Session
chapter 1, article 2, section 69, and
is intended to defray the regulatory
oversight and legal costs associated
with the class A license approved by
the commission on January 19, 2005.
This appropriation does not cancel, but
carries forward into the following
fiscal year. The racing commission may
not hire new employees or enter into
new contracts with money in this
section before resolution of the
petition for judicial review filed by
the Columbus Concerned Citizens Group.

This section is effective the day
following final enactment.

ARTICLE 2

STATE GOVERNMENT OPERATIONS

Section 1.

Minnesota Statutes 2004, section 3.011, is
amended to read:

3.011 SESSIONS.

The legislature shall meet at the seat of government on the
first Tuesday after the first Monday in January of each
odd-numbered year. When the first Monday in January falls on
January 1, it shall meet on the first Wednesday after the first
Monday. new text begin The legislature may not meet in regular session in an
even-numbered year before April 1.new text end It shall also meet when
called by the governor to meet in special session.

Sec. 2.

Minnesota Statutes 2004, section 3.012, is amended
to read:

3.012 LEGISLATIVE DAY.

A legislative day is a day when either house of the
legislature is called to order new text begin or when a standing committee of
either house of the legislature meetsnew text end . A legislative day begins
at seven o'clock a.m. and continues until seven o'clock a.m. of
the following calendar day.

Sec. 3.

new text begin [3.194] REVENUE FROM PUBLICATIONS; MEDIA
PRODUCTIONS.
new text end

new text begin (a) The house of representatives and the senate must:
new text end

new text begin (1) solicit paid advertising in weekly news magazines
published by legislative staff; and
new text end

new text begin (2) accept donations and solicit sponsorships for media
productions that provide the public access to legislative
proceedings.
new text end

new text begin (b) The house of representatives and the senate may accept
donations for weekly news magazines published by legislative
staff.
new text end

new text begin (c) The house of representatives and the senate may solicit
advertising in legislative directories published by legislative
staff.
new text end

new text begin (d) Revenue received by the house of representatives and
senate under this section is appropriated to the house of
representatives or the senate, as applicable.
new text end

Sec. 4.

new text begin [3.1941] PUBLIC INFORMATION.
new text end

new text begin The house of representatives and the senate must publish a
combined schedule of house and senate committee meetings and
floor sessions. The combined schedule must be based on the
electronic database-driven schedule system developed by the
house of representatives.
new text end

new text begin Any nonpartisan, weekly news magazine providing information
to the public about the legislature, the legislative process, or
legislative proceedings must be a joint printed publication of
the house of representatives and the senate. Editorial control
under this section is the responsibility of the house of
representatives.
new text end

Sec. 5.

new text begin [3.306] MEETING TIMES.
new text end

new text begin The house of representatives and the senate must adopt
rules that set one time as the regular hour of convening daily
sessions in both houses.
new text end

Sec. 6.

new text begin [3.3061] JOINT STANDING COMMITTEES.
new text end

new text begin The house of representatives and the senate are encouraged
to adopt rules that: (1) establish a system of joint standing
committees to consider and report on legislation and conduct
other legislative business, except that each house may establish
separately a committee on rules and administration and a
committee on ethics; or (2) provide that house and senate
committees with similar jurisdiction will meet at the same time,
to facilitate joint meetings.
new text end

Sec. 7.

new text begin [3.3062] WIRELESS INTERNET.
new text end

new text begin If nonstate funds are available, the Legislative
Coordinating Commission must establish wireless Internet service
in the Capitol building and the State Office Building, and must
make this service available to the public. The commission may
establish any necessary security features related to use of this
service.
new text end

Sec. 8.

new text begin [4.48] FAITH-BASED INITIATIVES.
new text end

new text begin The governor must designate an employee in the governor's
office to coordinate faith-based initiatives.
new text end

Sec. 9.

new text begin [5.31] STATEWIDE VOTER REGISTRATION SYSTEM.
new text end

new text begin The secretary of state may sell intellectual property
rights associated with the statewide voter registration system
to other states or to units of local government in other states.
new text end

Sec. 10.

new text begin [6.80] RULE AND LAW WAIVER REQUESTS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin (a) Except as provided in
paragraph (b), a local government unit may request the state
auditor to grant a waiver from one or more administrative rules
or a temporary, limited exemption from enforcement of state
procedural laws governing delivery of services by the local
government unit. Two or more local government units may submit
a joint application for a waiver or exemption under this section
if they propose to cooperate in providing a service or program
that is subject to the rule or law. Before submitting an
application to the state auditor, the governing body of the
local government unit must approve, in concept, the proposed
waiver or exemption at a meeting required to be public under
chapter 13D. A local government unit or two or more units
acting jointly may apply for a waiver or exemption on behalf of
a nonprofit organization providing services to clients whose
costs are paid by the unit or units. A waiver or exemption
granted to a nonprofit organization under this section applies
to services provided to all the organization's clients.
new text end

new text begin (b) A school district that is granted a variance from rules
of the commissioner of education under section 122A.163, need
not apply for a waiver of those rules under this section. A
school district may not seek a waiver of rules under this
section if the commissioner of education has authority to grant
a variance to the rules under section 122A.163. This paragraph
does not preclude a school district from being included in a
cooperative effort with another local government unit under this
section.
new text end

new text begin (c) Before petitioning the State Auditor's Office for an
exemption from an administrative rule, the petitioner must have
requested and been denied such an exemption from the appropriate
agency pursuant to sections 14.055 and 14.056.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin A local government unit requesting
a waiver of a rule or exemption from enforcement of a law under
this section shall present a written application to the state
auditor. The application must include:
new text end

new text begin (1) the name and address of the entity for whom a waiver of
a rule or exemption from enforcement of a law is being
requested;
new text end

new text begin (2) identification of the service or program at issue;
new text end

new text begin (3) identification of the administrative rule or the law
imposing a procedural requirement with respect to which the
waiver or exemption is sought;
new text end

new text begin (4) a description of the improved service outcome sought,
including an explanation of the effect of the waiver or
exemption in accomplishing that outcome, and why that outcome
cannot be accomplished under established rules or laws;
new text end

new text begin (5) information on the State Auditor's Office treatment on
similar cases;
new text end

new text begin (6) the name, address, and telephone number of any person,
business, or other government unit the petitioner knows would be
adversely affected by the grant of the petition; and
new text end

new text begin (7) a signed statement as to the accuracy of the facts
presented.
new text end

new text begin A copy of the application must be provided by the requesting
local government unit to the exclusive representative certified
under section 179A.12 to represent employees who provide the
service or program affected by the requested waiver or exemption.
new text end

new text begin Subd. 3. new text end

new text begin Review process. new text end

new text begin (a) Upon receipt of an
application from a local government unit, the state auditor
shall review the application. The state auditor shall dismiss
an application if the application proposes a waiver of rules or
exemption from enforcement of laws that would result in due
process violations, violations of federal law or the state or
federal constitution, or the loss of services to people who are
entitled to them.
new text end

new text begin (b) The state auditor shall determine whether a law from
which an exemption for enforcement is sought is a procedural
law, specifying how a local government unit is to achieve an
outcome, rather than a substantive law prescribing the outcome
or otherwise establishing policy. In making its determination,
the state auditor shall consider whether the law specifies such
requirements as:
new text end

new text begin (1) who must deliver a service;
new text end

new text begin (2) where the service must be delivered;
new text end

new text begin (3) to whom and in what form reports regarding the service
must be made; and
new text end

new text begin (4) how long or how often the service must be made
available to a given recipient.
new text end

new text begin (c) If the application is submitted by a local government
unit in the metropolitan area or the unit requests a waiver of a
rule or temporary, limited exemptions from enforcement of a
procedural law over which the Metropolitan Council or a
metropolitan agency has jurisdiction, the state auditor shall
also transmit a copy of the application to the council for
review and comment. The council shall report its comments to
the board within 60 days of the date the application was
transmitted to the council. The council may point out any
resources or technical assistance it may be able to provide a
local government unit submitting a request under this section.
new text end

new text begin (d) Within 15 days after receipt of the application, the
state auditor shall transmit a copy of it to the commissioner of
each agency having jurisdiction over a rule or law from which a
waiver or exemption is sought. The agency may mail a notice
that it has received an application for a waiver or exemption to
all persons who have registered with the agency under section
14.14, subdivision 1a, identifying the rule or law from which a
waiver or exemption is requested. If no agency has jurisdiction
over the rule or law, the state auditor shall transmit a copy of
the application to the attorney general. The agency shall
inform the state auditor of its agreement with or objection to
and grounds for objection to the waiver or exemption request
within 60 days of the date when the application was transmitted
to it. An agency's failure to do so is considered agreement to
the waiver or exemption. The state auditor shall decide whether
to grant a waiver or exemption at the end of the 60-day response
period. Interested persons may submit written comments to the
state auditor on the waiver or exemption request up to the end
of the 60-day response period.
new text end

new text begin (e) If the exclusive representative of the affected
employees of the requesting local government unit objects to the
waiver or exemption request, it may inform the state auditor of
the objection to and the grounds for the objection to the waiver
or exemption request within 60 days of the receipt of the
application.
new text end

new text begin Subd. 4. new text end

new text begin Hearing. new text end

new text begin If a state agency under subdivision 3,
paragraph (d), or the exclusive representative of the affected
employees under subdivision 3, paragraph (e), has objected to a
waiver or exemption request, the State Auditor's Office shall
set a date for a hearing on the applications. The hearing must
be conducted informally at a time and place determined by all
parties. Persons representing the local government unit shall
present their case for the waiver or exemption, and persons
representing the agency or the exclusive representative of the
affected employees shall explain their objection to it. The
state auditor may request additional information from the local
government unit or either objecting party. The state auditor
may also request, either before or at the hearing, information
or comments from representatives of business, labor, local
governments, state agencies, consultants, and members of the
public. If necessary, the hearing may be continued for a later
date. The state auditor may modify the terms of the waiver or
exemption request in arriving at the agreement required under
subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Conditions of agreements. new text end

new text begin (a) In determining
whether to grant a petition for a waiver of a rule or exemption
from enforcement of a law, the state auditor should consider the
following factors:
new text end

new text begin (1) whether there is a true and unique impediment under
current law to accomplishing the goal of the local government
unit;
new text end

new text begin (2) granting the waiver of a rule or exemption from
enforcement of law will only change procedural requirements of a
local government unit;
new text end

new text begin (3) the purpose of any rule or law that is waived is still
being met in another manner;
new text end

new text begin (4) granting the proposed waiver of a rule or exemption
from enforcement of a law would result in a more efficient means
of providing government services; and
new text end

new text begin (5) granting the proposed waiver will not have a
significant negative impact on other state government, local
government units, businesses, or citizens.
new text end

new text begin (b) If the state auditor grants a request for a waiver or
exemption, the state auditor and the local government unit shall
enter into an agreement providing for the delivery of the
service or program that is the subject of the application. The
agreement must specify desired outcomes, the reasons why the
desired outcomes cannot be met under current laws or rules, and
the means of measurement by which the state auditor will
determine whether the outcomes specified in the agreement have
been met. The agreement must specify the duration of the waiver
or exemption. The duration of a waiver from an administrative
rule may be for no less than two years and no more than four
years, subject to renewal if both parties agree. An exemption
from enforcement of a law terminates ten days after adjournment
of the regular legislative session held during the calendar year
following the year when the exemption is granted, unless the
legislature has acted to extend or make permanent the exemption.
new text end

new text begin (c) The state auditor must report any grants of waivers or
exemptions to the legislature, including the chairs of the
governmental operations and appropriate policy committees in the
house of representatives and senate and the governor within 30
days.
new text end

new text begin (d) The state auditor may reconsider or renegotiate the
agreement if the rule or law affected by the waiver or exemption
is amended or repealed during the term of the original
agreement. A waiver of a rule under this section has the effect
of a variance granted by an agency under section 14.055. A
local unit of government that is granted an exemption from
enforcement of a procedural requirement in state law under this
section is exempt from that law for the duration of the
exemption. The state auditor may require periodic reports from
the local government unit or conduct investigations of the
service or program.
new text end

new text begin Subd. 6. new text end

new text begin Enforcement. new text end

new text begin If the state auditor finds that
the local government unit is failing to comply with the terms of
the agreement under subdivision 5, the state auditor may rescind
the agreement. Upon the rescission, the local unit of
government becomes subject to the rules and laws covered by the
agreement.
new text end

new text begin Subd. 7. new text end

new text begin Access to data. new text end

new text begin If a local government unit,
through a cooperative program under this section, gains access
to data collected, created, received, or maintained by another
local government that is classified as not public, the unit
gaining access is governed by the same restrictions on access to
and use of the data as the unit that collected, created,
received, or maintained the data.
new text end

Sec. 11.

new text begin [8.065] PRIVATE ATTORNEY CONTRACTS.
new text end

new text begin The attorney general may not enter into a contract for
legal services in which the fees and expenses paid by the state
exceed, or can reasonably be expected to exceed, $1,000,000
unless the attorney general first submits the proposed contract
to the Legislative Advisory Commission, and waits at least 20
days to receive a possible recommendation from the commission.
new text end

Sec. 12.

Minnesota Statutes 2004, section 11A.04, is
amended to read:

11A.04 DUTIES AND POWERS.

The state board shall:

(1) Act as trustees for each fund for which it invests or
manages money in accordance with the standard of care set forth
in section 11A.09 if state assets are involved and in accordance
with chapter 356A if pension assets are involved.

(2) Formulate policies and procedures deemed necessary and
appropriate to carry out its functions. Procedures adopted by
the board must allow fund beneficiaries and members of the
public to become informed of proposed board actions. Procedures
and policies of the board are not subject to the Administrative
Procedure Act.

(3) Employ an executive director as provided in section
11A.07.

(4) Employ investment advisors and consultants as it deems
necessary.

(5) Prescribe policies concerning personal investments of
all employees of the board to prevent conflicts of interest.

(6) Maintain a record of its proceedings.

(7) As it deems necessary, establish advisory committees
subject to section 15.059 to assist the board in carrying out
its duties.

(8) Not permit state funds to be used for the underwriting
or direct purchase of municipal securities from the issuer or
the issuer's agent.

(9) Direct the commissioner of finance to sell property
other than money that has escheated to the state when the board
determines that sale of the property is in the best interest of
the state. Escheated property must be sold to the highest
bidder in the manner and upon terms and conditions prescribed by
the board.

(10) Undertake any other activities necessary to implement
the duties and powers set forth in this section.

(11) Establish a formula or formulas to measure management
performance and return on investment. Public pension funds in
the state shall utilize the formula or formulas developed by the
state board.

(12) Except as otherwise provided in article XI, section 8,
of the Constitution of the state of Minnesota, employ, at its
discretion, qualified private firms to invest and manage the
assets of funds over which the state board has investment
management responsibility. There is annually appropriated to
the state board, from the assets of the funds for which the
state board utilizes a private investment manager, sums
sufficient to pay the costs of employing private firms. Each
year, by January 15, the board shall report to the governor and
legislature on the cost and the investment performance of each
investment manager employed by the board.

(13) Adopt an investment policy statement that includes
investment objectives, asset allocation, and the investment
management structure for the retirement fund assets under its
control. The statement may be revised at the discretion of the
state board. The state board shall seek the advice of the
council regarding its investment policy statement. Adoption of
the statement is not subject to chapter 14.

new text begin There is annually appropriated to the state board, from the
assets of the funds for which the state board provides
investment services, sums sufficient to pay the costs of all
necessary expenses for the administration of the board. These
sums will be deposited in the State Board of Investment
operating account, which must be established by the commissioner
of finance.
new text end

Sec. 13.

Minnesota Statutes 2004, section 11A.07,
subdivision 4, is amended to read:

Subd. 4.

Duties and powers.

The director, at the
direction of the state board, shall:

(1) plan, direct, coordinate, and execute administrative
and investment functions in conformity with the policies and
directives of the state board and the requirements of this
chapter and of chapter 356A;

(2) new text begin prepare and submit biennial and annual budgets to the
board and with the approval of the board submit the budgets to
the Department of Finance;
new text end

new text begin (3) new text end employ professional and clerical staff as deleted text begin is deleted text end necessary
deleted text begin within the complement limits established by the legislaturedeleted text end .
Employees whose primary responsibility is to invest or manage
money or employees who hold positions designated as unclassified
under section 43A.08, subdivision 1a, are in the unclassified
service of the state. Other employees are in the classified
service;

deleted text begin (3) deleted text end new text begin (4) new text end report to the state board on all operations under
the director's control and supervision;

deleted text begin (4) deleted text end new text begin (5) new text end maintain accurate and complete records of
securities transactions and official activities;

deleted text begin (5) deleted text end new text begin (6) new text end establish a policy relating to the purchase and
sale of securities on the basis of competitive offerings or
bids. The policy is subject to board approval;

deleted text begin (6) deleted text end new text begin (7) new text end cause securities acquired to be kept in the custody
of the commissioner of finance or other depositories consistent
with chapter 356A, as the state board deems appropriate;

deleted text begin (7) deleted text end new text begin (8) new text end prepare and file with the director of the
Legislative Reference Library, by December 31 of each year, a
report summarizing the activities of the state board, the
council, and the director during the preceding fiscal year. The
report must be prepared so as to provide the legislature and the
people of the state with a clear, comprehensive summary of the
portfolio composition, the transactions, the total annual rate
of return, and the yield to the state treasury and to each of
the funds whose assets are invested by the state board, and the
recipients of business placed or commissions allocated among the
various commercial banks, investment bankers, and brokerage
organizations. The report must contain financial statements for
funds managed by the board prepared in accordance with generally
accepted accounting principles;

deleted text begin (8) deleted text end new text begin (9) new text end require state officials from any department or
agency to produce and provide access to any financial documents
the state board deems necessary in the conduct of its investment
activities;

deleted text begin (9) deleted text end new text begin (10) new text end receive and expend legislative appropriations; new text begin and
new text end

deleted text begin (10) deleted text end new text begin (11) new text end undertake any other activities necessary to
implement the duties and powers set forth in this subdivision
consistent with chapter 356A.

Sec. 14.

Minnesota Statutes 2004, section 11A.07,
subdivision 5, is amended to read:

Subd. 5.

Apportionment of expenses.

deleted text begin The executive
director shall apportion the actual expenses incurred by the
board on an accrual basis among the several funds whose assets
are invested by the board based on the weighted average assets
under management during each quarter. The charge to each fund
must be calculated, billed, and paid on a quarterly basis in
accordance with procedures for interdepartmental payments
established by the commissioner of finance. The amounts
necessary to pay these charges are appropriated from the
investment earnings of each fund. Receipts must be credited to
the general fund as nondedicated receipts. deleted text end new text begin The annual expenses
incurred by the state board will be apportioned among the state
general fund, the retirement funds administered by the Minnesota
State Retirement System, Public Employees Retirement
Association, and Teachers Retirement Association, and all other
funds as follows:
new text end

new text begin (1) on a biennial basis, the state board, in accordance
with biennial budget procedures established by the commissioner
of finance, may request a direct appropriation that represents
the portion of the state board's expenses necessary to provide
investment services to the state general fund. This
appropriation must be deposited in the State Board of Investment
operating account;
new text end

new text begin (2) the executive director shall apportion the actual
expenses incurred by the state board, less the charge to the
state general fund, among the funds whose assets are invested by
the state board, with the exception of the state general fund,
based on the weighted average assets under management during the
fiscal year. The amounts necessary to pay these charges are
apportioned from the investment earnings of each fund. Receipts
must be credited to the State Board of Investment operating
account;
new text end

new text begin (3) the actual expenses apportioned and charged to the
funds, with the exception of the state general fund and the
retirement funds administered by the Minnesota State Retirement
System, Public Employees Retirement Association, and Teachers
Retirement Association, must be calculated, billed, and paid on
a quarterly basis in accordance with procedures for
interdepartmental payments established by the commissioner of
finance; and
new text end

new text begin (4) the annual estimated expenses to be incurred by the
state board that will be payable by the retirement funds
administered by the Minnesota State Retirement System, Public
Employees Retirement Association, and Teachers Retirement
Association must be deposited in the State Board of Investment
operating account on the first business day of each fiscal
year. A reconciliation of the actual expenses compared to the
estimated costs must occur at the end of each fiscal year with
any surplus or deficit being credited or debited to each of the
respective funds. The state board must present a statement of
accrued actual expenses to each fund at the end of each quarter
during each fiscal year.
new text end

Sec. 15.

Minnesota Statutes 2004, section 11A.24,
subdivision 6, is amended to read:

Subd. 6.

Other investments.

(a) In addition to the
investments authorized in subdivisions 1 to 5, and subject to
the provisions in paragraph (b), the state board may invest
funds in:

(1) venture capital investment businesses through
participation in limited partnerships, trusts, private
placements, limited liability corporations, limited liability
companies, limited liability partnerships, and corporations;

(2) real estate ownership interests or loans secured by
mortgages or deeds of trust or shares of real estate investment
trusts through investment in limited partnerships, bank
sponsored collective funds, trusts, mortgage participation
agreements, and insurance company commingled accounts, including
separate accounts;

(3) regional and mutual funds through bank sponsored
collective funds and open-end investment companies registered
under the Federal Investment Company Act of 1940, and closed-end
mutual funds listed on an exchange regulated by a governmental
agency;

(4) resource investments through limited partnerships,
trusts, private placements, limited liability corporations,
limited liability companies, limited liability partnerships, and
corporations; and

(5) international securities.

(b) The investments authorized in paragraph (a) must
conform to the following provisions:

(1) the aggregate value of all investments made according
to paragraph (a), clauses (1) to (4), may not exceed 35 percent
of the market value of the fund for which the state board is
investing;

(2) there must be at least four unrelated owners of the
investment other than the state board for investments made under
paragraph (a), clause (1), (2), (3), or (4);

(3) state board participation in an investment vehicle is
limited to 20 percent thereof for investments made under
paragraph (a), clause (1), (2), (3), or (4); and

(4) state board participation in a limited partnership does
not include a general partnership interest or other interest
involving general liability. The state board may not engage in
any activity as a limited partner which creates general
liability.

new text begin (c) All financial, business, or proprietary data collected,
created, received, or maintained by the state board in
connection with investments authorized by paragraph (a), clause
(1), (2), or (4), are nonpublic data under section 13.02,
subdivision 9. As used in this paragraph, "financial, business,
or proprietary data" means data, as determined by the
responsible authority for the state board, that is of a
financial, business, or proprietary nature; and the release of
which could cause competitive harm to the state board, the legal
entity in which the state board has invested or has considered
an investment, the managing entity of an investment, or a
portfolio company in which the legal entity holds an interest.
As used in this section, "business data" is data described in
section 13.591, subdivision 1. Regardless of whether they could
be considered financial, business, or proprietary data, the
following data received, prepared, used, or retained by the
state board in connection with investments authorized by
paragraph (a), clause (1), (2), or (4), are public at all times:
new text end

new text begin (1) the name and industry group classification of the legal
entity in which the state board has invested or in which the
state board has considered an investment;
new text end

new text begin (2) the state board commitment amount, if any;
new text end

new text begin (3) the funded amount of the state board's commitment to
date, if any;
new text end

new text begin (4) the market value of the investment by the state board;
new text end

new text begin (5) the state board's internal rate of return for the
investment, including expenditures and receipts used in the
calculation of the investment's internal rate of return; and
new text end

new text begin (6) the age of the investment in years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 16.

Minnesota Statutes 2004, section 13.635, is
amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin State board of investment. new text end

new text begin Certain government
data of the State Board of Investment related to investments are
classified under section 11A.24, subdivision 6.
new text end

Sec. 17.

new text begin [14.127] LEGISLATIVE APPROVAL REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Cost thresholds. new text end

new text begin An agency must determine
if the cost of complying with a proposed rule in the first year
after the rule takes effect will exceed $15,000 for: (1) any
one business that has less than 50 full-time employees; or (2)
any one statutory or home rule charter city that has less than
ten full-time employees. For purposes of this section,
"business" means a business entity organized for profit or as a
nonprofit, and includes an individual, partnership, corporation,
joint venture, association, or cooperative.
new text end

new text begin Subd. 2. new text end

new text begin Agency determination. new text end

new text begin An agency must make the
determination required by subdivision 1 before the close of the
hearing record, or before the agency submits the record to the
administrative law judge if there is no hearing. The
administrative law judge must review and approve or disapprove
the agency determination under this section.
new text end

new text begin Subd. 3. new text end

new text begin Legislative approval required. new text end

new text begin If the agency
determines that the cost exceeds the threshold in subdivision 1,
or if the administrative law judge disapproves the agency's
determination that the cost does not exceed the threshold in
subdivision 1, any business that has less than 50 full-time
employees or any statutory or home rule charter city that has
less than ten full-time employees may file a written statement
with the agency claiming a temporary exemption from the rules.
Upon filing of such a statement with the agency, the rules do
not apply to that business or that city until the rules are
approved by a law enacted after the agency determination or
administrative law judge disapproval.
new text end

new text begin Subd. 4. new text end

new text begin Exceptions. new text end

new text begin (a) Subdivision 3 does not apply if
the administrative law judge approves an agency's determination
that the legislature has appropriated money to sufficiently fund
the expected cost of the rule upon the business or city proposed
to be regulated by the rule.
new text end

new text begin (b) Subdivision 3 does not apply if the administrative law
judge approves an agency's determination that the rule has been
proposed pursuant to a specific federal statutory or regulatory
mandate.
new text end

new text begin (c) This section does not apply if the rule is adopted
under section 14.388 or under another law specifying that the
rulemaking procedures of this chapter do not apply.
new text end

new text begin (d) This section does not apply to a rule adopted by the
Public Utilities Commission.
new text end

new text begin (e) Subdivision 3 does not apply if the governor waives
application of subdivision 3. The governor may issue a waiver
at any time, either before or after the rule would take effect,
but for the requirement of legislative approval. As soon as
possible after issuing a waiver under this paragraph, the
governor must send notice of the waiver to the speaker of the
house of representatives and the president of the senate and
must publish notice of this determination in the State Register.
new text end

new text begin Subd. 5.new text end

new text begin Severability.new text end

new text begin If an administrative law judge
determines that part of a proposed rule exceeds the threshold
specified in subdivision 1, but that a severable portion of a
proposed rule does not exceed the threshold in subdivision 1,
the administrative law judge may provide that the severable
portion of the rule that does not exceed the threshold may take
effect without legislative approval.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
This section applies to any rule for which the hearing record
has not closed before July 1, 2005, or, if there is no public
hearing, for which the agency has not submitted the record to
the administrative law judge before that date.
new text end

Sec. 18.

Minnesota Statutes 2004, section 14.19, is
amended to read:

14.19 DEADLINE TO COMPLETE RULEMAKING.

Within 180 days after issuance of the administrative law
judge's report or that of the chief administrative law judge,
the agency shall submit its notice of adoption, amendment, or
repeal to the State Register for publication. If the agency has
not submitted its notice to the State Register within 180 days,
the rule is automatically withdrawn. The agency may not adopt
the withdrawn rules without again following the procedures of
sections 14.05 to 14.28, with the exception of section 14.101,
if the noncompliance is approved by the chief administrative law
judge. The agency shall report to the Legislative Coordinating
Commission, other appropriate committees of the legislature, and
the governor its failure to adopt rules and the reasons for that
failure. The 180-day time limit of this section does not
include:

(1) any days used for review by the chief administrative
law judge or the commission if the review is required by law; deleted text begin or
deleted text end

(2) days during which the rule cannot be adopted, because
of votes by legislative committees under section 14.126new text begin ; or
new text end

new text begin (3) days during which the rule cannot be adopted because
approval of the legislature is required under section 14.127new text end .

Sec. 19.

Minnesota Statutes 2004, section 15.054, is
amended to read:

15.054 PUBLIC EMPLOYEES NOT TO PURCHASE MERCHANDISE FROM
GOVERNMENTAL AGENCIES; EXCEPTIONS; PENALTY.

No officer or employee of the state or any of its political
subdivisions shall sell or procure for sale or possess or
control for sale to any other officer or employee of the state
or subdivision, as appropriate, any property or materials owned
by the state or subdivision except pursuant to conditions
provided in this section. Property or materials owned by the
state or a subdivision and not needed for public purposes, may
be sold to an employee of the state or subdivision after
reasonable public notice at a public auction or by sealed
response, if the employee is not directly involved in the
auction or process pertaining to the administration and
collection of sealed responses. Requirements for reasonable
public notice may be prescribed by other law or ordinance so
long as at least one week's published notice is specified. An
employee of the state or a political subdivision may purchase no
more than one motor vehicle from the state deleted text begin in any 12-month
period deleted text end new text begin at any one auctionnew text end . A person violating the provisions of
this section is guilty of a misdemeanor. This section shall not
apply to the sale of property or materials acquired or produced
by the state or subdivision for sale to the general public in
the ordinary course of business. Nothing in this section shall
prohibit an employee of the state or a political subdivision
from selling or possessing for sale public property if the sale
or possession for sale is in the ordinary course of business or
normal course of the employee's duties.

Sec. 20.

new text begin [15.445] NOTIFICATION OF CERTAIN CHANGES TO
PROFESSIONAL LICENSURE LAWS AND RULES.
new text end

new text begin An executive agency under section 16A.011, subdivision 12,
that issues a professional license must notify all current
license holders of any changes made to laws or rules
administered by the agency under which a fine or other sanction
may be imposed on a noncompliant license holder. The agency
must notify all current license holders of the law or rule
changes by mail at their last known addresses on or before the
effective date of the changes.
new text end

Sec. 21.

new text begin [15.60] PUBLIC SAFETY OFFICERS; AMERICAN FLAG.
new text end

new text begin (a) A public employer may not forbid a peace officer or
firefighter from wearing a patch or pin depicting the flag of
the United States of America on the employee's uniform,
according to customary and standard flag etiquette. However, a
public employer may limit the size of a flag patch worn on a
uniform to no more than three inches by five inches.
new text end

new text begin (b) For purposes of this section:
new text end

new text begin (1) "peace officer" has the meaning given in section
626.84, subdivision 1, paragraph (c) or (f);
new text end

new text begin (2) "firefighter" means a person as defined in section
299A.41, subdivision 4, clause (3) or (4); and
new text end

new text begin (3) "public employer" has the meaning given in section
179A.03, subdivision 15, and also includes a municipal fire
department and an independent nonprofit firefighting corporation.
new text end

new text begin (c) A peace officer or firefighter who believes a public
employer is violating this section may request the attorney
general to issue an opinion on the issue. Upon such a request,
the attorney general must issue a written opinion, which is
binding, unless a court makes a contrary decision. If after
issuing an opinion, the attorney general determines that a
public employer continues to violate this section, the attorney
general may bring an action in district court to compel
compliance.
new text end

Sec. 22.

new text begin [15.701] SALARY DATA.
new text end

new text begin Every state agency, as defined in section 13.02,
subdivision 17, must annually provide notice of the names and
salaries of its three highest-paid employees. This notice may
be provided on the home page of the primary Web site maintained
by the state agency for a period of not less than 90 consecutive
days, in a publication of the state agency that is distributed
to residents of the state, or by publication in the State
Register.
new text end

Sec. 23.

new text begin [15B.055] PARKING SPACES.
new text end

new text begin To provide the public with greater access to legislative
proceedings, all parking spaces on Aurora Avenue in front of the
Capitol building must be reserved for the public.
new text end

Sec. 24.

Minnesota Statutes 2004, section 15B.17,
subdivision 1, is amended to read:

Subdivision 1.

Public bodies with proposals.

(a) Before
a state agency or other public body develops, to submit to the
legislature and the governor, a budget proposal or plans for
capital improvements within the Capitol Area, it must consult
with the board.

(b) The public body must provide enough money for the
board's review and planning if the board decides its review and
planning services are necessary. new text begin Money received by the board
under this subdivision and under section 15B.13, paragraph (e),
is appropriated to the board and does not cancel.
new text end

Sec. 25.

Minnesota Statutes 2004, section 16A.103, is
amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Report on expenditure increases. new text end

new text begin By January 10
of an odd-numbered year, the commissioner of finance must report
on those programs or components of programs for which
expenditures for the next biennium according to the forecast
issued the previous November are projected to increase more than
15 percent over the expenditures for that program in the current
biennium. The report must include an analysis of the factors
that are causing the increases in expenditures.
new text end

Sec. 26.

Minnesota Statutes 2004, section 16A.1286,
subdivision 2, is amended to read:

Subd. 2.

Billing procedures.

The commissioner may bill
up to $7,520,000 in each fiscal year for statewide systems
services provided to state agencies, judicial branch agencies,
the University of Minnesota, the Minnesota State Colleges and
Universities, and other entities. Billing must be based only on
usage of services relating to statewide systems deleted text begin provided by the
Intertechnologies Divisiondeleted text end . Each agency shall transfer from
agency operating appropriations to the statewide systems account
the amount billed by the commissioner. Billing policies and
procedures related to statewide systems services must be
developed by the commissioner in consultation with the
commissioners of employee relations and administration, the
University of Minnesota, and the Minnesota State Colleges and
Universities.

Sec. 27.

Minnesota Statutes 2004, section 16A.1286,
subdivision 3, is amended to read:

Subd. 3.

Appropriation.

Money transferred into the
account is appropriated to the commissioner to pay for statewide
systems services deleted text begin during the biennium in which it is appropriateddeleted text end .

Sec. 28.

Minnesota Statutes 2004, section 16A.152,
subdivision 2, is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the
basis of a forecast of general fund revenues and expenditures,
the commissioner of finance determines that there will be a
positive unrestricted budgetary general fund balance at the
close of the biennium, the commissioner of finance must allocate
money to the following accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1
until that account reaches $350,000,000;

(2) the budget reserve account established in subdivision
1a until that account reaches $653,000,000;

(3) the amount necessary to increase the aid payment
schedule for school district aids and credits payments in
section 127A.45 to not more than 90 percent new text begin rounded to the
nearest tenth of a percent without exceeding the amount
available and with any remaining funds deposited in the budget
reservenew text end ; and

(4) the amount necessary to restore all or a portion of the
net aid reductions under section 127A.441 and to reduce the
property tax revenue recognition shift under section 123B.75,
subdivision 5, paragraph (c), and Laws 2003, First Special
Session chapter 9, article 5, section 34, as amended by Laws
2003, First Special Session chapter 23, section 20, by the same
amount.

(b) The amounts necessary to meet the requirements of this
section are appropriated from the general fund within two weeks
after the forecast is released or, in the case of transfers
under paragraph (a), clauses (3) and (4), as necessary to meet
the appropriations schedules otherwise established in statute.

(c) To the extent that a positive unrestricted budgetary
general fund balance is projected, appropriations under this
section must be made before deleted text begin any transfer is made under deleted text end section
16A.1522 new text begin takes effectnew text end .

(d) The commissioner of finance shall certify the total
dollar amount of the reductions under paragraph (a), clauses (3)
and (4), to the commissioner of education. The commissioner of
education shall increase the aid payment percentage and reduce
the property tax shift percentage by these amounts and apply
those reductions to the current fiscal year and thereafter.

Sec. 29.

Minnesota Statutes 2004, section 16A.1522,
subdivision 1, is amended to read:

Subdivision 1.

Forecast.

If, on the basis of a forecast
of general fund revenues and expenditures in November of an
even-numbered year or February of an odd-numbered year, the
commissioner projects a positive unrestricted budgetary general
fund balance at the close of the biennium that exceeds one-half
of one percent of total general fund biennial revenues, the
commissioner shall designate the entire balance as available for
rebate to the taxpayers of this state. deleted text begin In forecasting,
projecting, or designating the unrestricted budgetary general
fund balance or general fund biennial revenue under this
section, the commissioner shall not include any balance or
revenue attributable to settlement payments received after July
1, 1998, and before July 1, 2001, as defined in Section IIB of
the settlement document, filed May 18, 1998, in State v. Philip
Morris, Inc., No. C1-94-8565 (Minnesota District Court, Second
Judicial District).
deleted text end

Sec. 30.

new text begin [16A.156] LIMIT ON ADMINISTRATIVE COSTS.
new text end

new text begin As a condition of receiving a grant from an appropriation
of state funds, the person or entity receiving the grant must
agree that no more than ten percent of the grant funds will be
spent for administrative purposes. This limit does not apply if
the commissioner of finance determines, after consulting with
the chairs of appropriate legislative budget committees, that
this limit is impracticable because the legislative intent in
appropriating money for the grant is that more than ten percent
of the grant is administrative in nature.
new text end

Sec. 31.

Minnesota Statutes 2004, section 16A.281, is
amended to read:

16A.281 APPROPRIATIONS TO LEGISLATURE.

Except as provided in this section, section 16A.28 applies
to appropriations made to the legislature, the senate, the house
of representatives, or its committees or commissions. An
appropriation made to the legislature, the senate, the house of
representatives, or a legislative commission or committee other
than a standing committee, if not spent during the first year,
may be spent during the second year of a biennium. An
unexpended balance not carried forward and remaining unexpended
and unencumbered at the end of a biennium lapses and shall be
returned to the fund from which appropriated. Balances may be
carried forward into the next biennium and credited to special
accounts to be used only as follows: (1) for nonrecurring
expenditures on investments that enhance efficiency or improve
effectiveness; (2) to pay expenses associated with deleted text begin special
deleted text end sessions, interim activities, public hearings, or other public
outreach efforts and related activities; and (3) to pay
severance costs of involuntary terminations. The approval of
the commissioner of finance under section 16A.28, subdivision 2,
does not apply to the legislature. An appropriation made to the
legislature, the senate, the house of representatives, or a
standing committee for all or part of a biennium may be spent in
either year of the biennium.

Sec. 32.

new text begin [16A.696] UNIVERSITY OF MINNESOTA AWARD OF
CAPITAL IMPROVEMENT CONTRACTS.
new text end

new text begin Notwithstanding any law to the contrary, any appropriation
for capital improvement projects for the University of Minnesota
is contingent on the University agreeing that contracts for the
projects will be awarded under the procedures in sections 16C.25
to 16C.28, except that the Board of Regents must perform
responsibilities assigned to the commissioner of administration.
new text end

Sec. 33.

new text begin [16B.296] TRANSFER OF REAL PROPERTY.
new text end

new text begin Unless otherwise provided by the commissioner, an agency
may not sell or otherwise transfer state-owned real property for
less than the appraised value, or if the property has not been
appraised, for less than the fair market value, as determined by
the commissioner. For purposes of this section, "agency"
includes the Minnesota State Colleges and Universities.
new text end

Sec. 34.

Minnesota Statutes 2004, section 16B.52,
subdivision 1, is amended to read:

Subdivision 1.

Permissible publications; pictures.

new text begin (a)
new text end No elected, administrative, or executive state officer, may have
printed, nor may the commissioner authorize the printing of, at
government expense, official reports and other publications
intended for general public circulation except those authorized
by law or included in the intent of the appropriation out of
which the cost will be defrayed.

new text begin (b) A publication printed at government expense by an
elected or appointed executive officer must contain only
material that provides information about the duties and
jurisdiction of the officer or the officer's organization, or
facilitates public access to services offered by the officer or
organization. All material in the publication must be directly
related to the legal functions, duties, and jurisdiction of the
public official or organization.
new text end

new text begin (c) new text end Executive officers shall, before presenting their
annual reports and other publications to the commissioner,
examine them and exclude from them pictures of elected and
administrative officials, and any other pictorial device
calculated to or tending to attribute the publication to an
individual instead of the department of state government from
which it emanates. All other engravings, maps, drawings and
illustrations must be excluded from the reports and
publications, except those the executive officers certify when
they present the reports for printing to be necessary and to
relate entirely to the transaction of the state's business, or
to be reasonably required to present for clear understanding the
substance of the report.

Sec. 35.

new text begin [16C.061] USED GOODS.
new text end

new text begin When acquiring goods, the commissioner or the agency making
the acquisition must consider purchasing used goods if used
goods may result in the best value for the purchasing entity.
new text end

Sec. 36.

new text begin [16C.064] COST-BENEFIT ANALYSIS.
new text end

new text begin (a) The commissioner or an agency official to whom the
commissioner has delegated duties under section 16C.03,
subdivision 16, may not approve a contract or purchase of goods
or services in an amount greater than $5,000,000 unless a
cost-benefit analysis has been completed and shows a positive
benefit to the public. The Management Analysis Division must
perform or direct the performance of the analysis. A
cost-benefit analysis must be performed for a project if an
aggregation of contracts or purchases for a project exceeds
$5,000,000.
new text end

new text begin (b) All cost-benefit analysis documents under this section,
including preliminary drafts and notes, are public data.
new text end

new text begin (c) If a cost-benefit analysis does not show a positive
benefit to the public, the governor may approve a contract or
purchase of goods or services if a cost-effectiveness study had
been done that shows the proposed project is the most effective
way to provide a necessary public good.
new text end

new text begin (d) This section applies to contracts for goods or services
that are expected to have a useful life of more than three
years. This section does not apply for purchase of goods or
services for response to a natural disaster if an emergency has
been declared by the governor.
new text end

Sec. 37.

Minnesota Statutes 2004, section 16C.10,
subdivision 7 is amended to read:

Subd. 7.

Reverse auction.

(a) For the purpose of this
subdivision, "reverse auction" means a purchasing process in
which vendors compete to provide goods deleted text begin or engineering design deleted text end or
computer services at the lowest selling price in an open and
interactive environment.

(b) The provisions of sections 13.591, subdivision 3, and
16C.06, subdivision 2, do not apply when the commissioner
determines that a reverse auction is the appropriate purchasing
process.

Sec. 38.

new text begin [16C.143] ENERGY FORWARD PRICING MECHANISMS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The following definitions
apply in this section:
new text end

new text begin (1) "energy" means natural gas, heating oil, propane, and
any other energy source except electricity used in state
facilities; and
new text end

new text begin (2) "forward pricing mechanism" means a contract or
financial instrument that obligates a state agency to buy or
sell a specified quantity of energy at a future date at a set
price.
new text end

new text begin Subd. 2. new text end

new text begin Authority. new text end

new text begin Notwithstanding any other law to the
contrary, the commissioner may use forward pricing mechanisms
for budget risk reduction.
new text end

new text begin Subd. 3. new text end

new text begin Conditions. new text end

new text begin Forward pricing mechanism
transactions must be made only under the following conditions:
new text end

new text begin (1) the quantity of energy affected by the forward pricing
mechanism must not exceed 90 percent of the estimated energy use
for the state agency for the same period, which shall not exceed
24 months; and
new text end

new text begin (2) a separate account must be established for each state
agency using a forward pricing mechanism.
new text end

new text begin Subd. 4.new text end

new text begin Written policies and procedures.new text end

new text begin Before
exercising the authority under this section, the commissioner
must develop written policies and procedures governing the use
of forward pricing mechanisms.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 39.

Minnesota Statutes 2004, section 16C.144, is
amended to read:

16C.144 GUARANTEED new text begin ENERGY new text end SAVINGS deleted text begin CONTRACTS deleted text end new text begin PROGRAMnew text end .

Subdivision 1.

Definitions.

The following definitions
apply to this section.

(a) "Utility" means electricity, natural gas, or other
energy resource, water, and wastewater.

(b) "Utility cost savings" means the difference between deleted text begin the
utility costs under the precontract conditions and deleted text end the utility
costs after deleted text begin the changes have been made under the contract. Such
savings shall be calculated in comparison to an established
baseline of utility costs deleted text end new text begin installation of the utility
cost-savings measures pursuant to the guaranteed energy savings
agreement and the baseline utility costs after baseline
adjustments have been madenew text end .

(c) deleted text begin "Established baseline" means the precontract utilities,
operations, and maintenance costs.
deleted text end

deleted text begin (d) deleted text end new text begin "Baseline" means the preagreement utilities,
operations, and maintenance costs.
new text end

new text begin (d) new text end "Utility cost-savings measure" means a measure that
produces utility cost savings and/or operation and maintenance
cost savings.

(e) "Operation and maintenance cost savings" means a
measurable deleted text begin decrease in deleted text end new text begin difference between operation and
maintenance costs after the installation of the utility
cost-savings measures pursuant to the guaranteed energy savings
agreement and the baseline new text end operation and maintenance costs deleted text begin that
is a direct result of the implementation of one or more utility
cost-savings measures but does deleted text end new text begin after inflation adjustments have
been made. Operation and maintenance costs savings shall new text end not
include savings from in-house staff labor. deleted text begin Such savings shall
be calculated in comparison to an established baseline of
operation and maintenance costs.
deleted text end

(f) "Guaranteed new text begin energy new text end savings deleted text begin contract deleted text end new text begin agreement new text end " means deleted text begin a
contract deleted text end new text begin an agreement new text end for the deleted text begin evaluation, recommendation, and
deleted text end installation of one or more utility cost-savings measures new text begin that
includes the qualified provider's guarantee as required under
subdivision 2new text end . deleted text begin The contract must provide that all payments are
to be made over time but not to exceed ten years from the date
of final installation, and the savings are guaranteed to the
extent necessary to make payments for the utility cost-savings
measures.
deleted text end

(g) "Baseline adjustments" means adjusting the deleted text begin established
deleted text end new text begin utility cost savings new text end baselines deleted text begin in paragraphs (b) and
(d) deleted text end new text begin annually new text end for changes in the following variables:

(1) utility rates;

(2) number of days in the utility billing cycle;

(3) square footage of the facility;

(4) operational schedule of the facility;

(5) facility temperature set points;

(6) weather; and

(7) amount of equipment or lighting utilized in the
facility.

(h) new text begin "Inflation adjustment" means adjusting the operation
and maintenance cost-savings baseline annually for inflation.
new text end

new text begin (i) new text end "Lease purchase deleted text begin contract deleted text end new text begin agreement new text end " means deleted text begin a
contract deleted text end new text begin an agreement new text end obligating the state to make regular lease
payments to satisfy the lease costs of the utility cost-savings
measures until the final payment, after which time the utility
cost-savings measures become the sole property of the state of
Minnesota.

deleted text begin (i) deleted text end new text begin (j) new text end "Qualified provider" means a person or business
experienced in the design, implementation, and installation of
utility cost-savings measures.

deleted text begin (j) deleted text end new text begin (k) new text end "Engineering report" means a report prepared by a
professional engineer licensed by the state of Minnesota
summarizing estimates of all costs of installations,
modifications, or remodeling, including costs of design,
engineering, installation, maintenance, repairs, and estimates
of the amounts by which utility and operation and maintenance
costs will be reduced.

deleted text begin (k) deleted text end new text begin (l) new text end "Capital cost avoidance" means money expended by a
state agency to pay for utility cost-savings measures with a
guaranteed savings deleted text begin contract deleted text end new text begin agreement new text end so long as the measures
that are being implemented to achieve the new text begin utility, operation,
and maintenance new text end cost savings are a significant portion of an
overall project new text begin as determined by the commissionernew text end .

deleted text begin (l) deleted text end new text begin (m) new text end "Guaranteed new text begin energy new text end savings deleted text begin contracting deleted text end new text begin program
new text end guidelines" means policies, procedures, and requirements of
guaranteed savings deleted text begin contracts deleted text end new text begin agreements new text end established by the
Department of Administration deleted text begin upon enacting this legislationdeleted text end .

Subd. 2.

Guaranteed new text begin energy new text end savings deleted text begin contract deleted text end new text begin agreementnew text end .

The commissioner may enter into a guaranteed new text begin energy new text end savings
deleted text begin contract deleted text end new text begin agreement new text end with a qualified provider if:

(1) the qualified provider is selected through a
competitive process in accordance with the guaranteed new text begin energy
new text end savings deleted text begin contracting deleted text end new text begin program new text end guidelines within the Department of
Administration;

(2) the qualified provider agrees to submit an engineering
report prior to the execution of the guaranteed new text begin energy new text end savings
deleted text begin contract deleted text end new text begin agreement. The cost of the engineering report may be
considered as part of the implementation costs if the
commissioner enters into a guaranteed energy savings agreement
with the providernew text end ;

(3) new text begin the term of the guaranteed energy savings agreement
shall not exceed 15 years from the date of final installation;
new text end

new text begin (4) new text end the commissioner finds that the amount it would spend
on the utility cost-savings measures recommended in the
engineering report will not exceed the amount to be saved in
utility operation and maintenance costs over deleted text begin ten deleted text end new text begin 15 new text end years from
the date of implementation of utility cost-savings measures;

deleted text begin (4) deleted text end new text begin (5) new text end the qualified provider provides a written guarantee
that the new text begin annual new text end utility, operation, and maintenance cost savings
new text begin during the term of the guaranteed energy savings agreement new text end will
meet or exceed the deleted text begin costs of the guaranteed savings contract
deleted text end new text begin annual payments due under a lease purchase agreementnew text end . The
qualified provider shall reimburse the state for any shortfall
of guaranteed utilitynew text begin , operation, and maintenance new text end cost savings;
and

deleted text begin (5) deleted text end new text begin (6) new text end the qualified provider gives a sufficient bond in
accordance with section 574.26 to the commissioner for the
faithful implementation and installation of the utility
cost-savings measures.

Subd. 3.

Lease purchase deleted text begin contract deleted text end new text begin agreementnew text end .

The
commissioner may enter into a lease purchase agreement with any
party for the implementation of utility cost-savings measures in
accordance with deleted text begin an engineering report deleted text end new text begin the guaranteed energy
savings agreementnew text end . The implementation costs of the utility
cost-savings measures recommended in the engineering report
shall not exceed the amount to be saved in utility and operation
and maintenance costs over the term of the lease purchase
agreement. The term of the lease purchase agreement shall not
exceed deleted text begin ten deleted text end new text begin 15 new text end years new text begin from the date of final installationnew text end . The
lease is assignable in accordance with terms approved by the
commissioner of finance.

Subd. 4.

Use of capital cost avoidance.

The affected
state agency may contribute funds for capital cost avoidance for
guaranteed new text begin energy new text end savings deleted text begin contracts deleted text end new text begin agreementsnew text end . Use of capital
cost avoidance is subject to the guaranteed new text begin energy new text end savings
deleted text begin contracting deleted text end new text begin program new text end guidelines within the Department of
Administration.

Subd. 5.

Report.

By January 15 of 2005 and 2007, the
commissioner of administration shall submit to the commissioner
of finance and the chairs of the senate and house of
representatives capital investment committees a list of projects
in the agency that have been funded using guaranteed energy
savings, as outlined in this section, during the preceding
biennium. For each guaranteed new text begin energy new text end savings deleted text begin contract deleted text end new text begin agreement
new text end entered into, the commissioner of administration shall contract
with an independent third party to evaluate the
cost-effectiveness of each utility cost-savings measure
implemented to ensure that such measures were the least-cost
measures available. For the purposes of this section,
"independent third party" means an entity not affiliated with
the qualified provider, that is not involved in creating or
providing conservation project services to that provider, and
that has expertise (or access to expertise) in energy savings
practices.

deleted text begin Subd. 6.deleted text end

deleted text begin Contract limits.deleted text end

deleted text begin Contracts may not be entered
into after June 30, 2007.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 40.

Minnesota Statutes 2004, section 16C.16,
subdivision 1, is amended to read:

Subdivision 1.

Small business procurements.

new text begin (a) new text end The
commissioner shall for each fiscal year ensure that small
businesses receive at least 25 percent of the value of
anticipated total state procurement of goods and services,
including printing and construction. The commissioner shall
divide the procurements so designated into contract award units
of economically feasible production runs in order to facilitate
offers or bids from small businesses.

new text begin (b) The commissioner must avoid awarding a master contract
on an exclusive basis if awarding the contract on that basis
excludes small businesses. When feasible, when entering into a
master contract, the commissioner must attempt to negotiate
contract terms that allow agencies the option of purchasing from
small businesses, particularly small businesses that are
geographically proximate to the entity making the purchase.
new text end

new text begin (c) new text end In making the annual designation of such procurements
the commissioner shall attempt (1) to vary the included
procurements so that a variety of goods and services produced by
different small businesses are obtained each year, and (2) to
designate small business procurements in a manner that will
encourage proportional distribution of such awards among the
geographical regions of the state. To promote the geographical
distribution of awards, the commissioner may designate a portion
of the small business procurement for award to bidders from a
specified congressional district or other geographical region
specified by the commissioner. The failure of the commissioner
to designate particular procurements shall not be deemed to
prohibit or discourage small businesses from seeking the
procurement award through the normal process.

Sec. 41.

Minnesota Statutes 2004, section 16C.16, is
amended by adding a subdivision to read:

new text begin Subd. 7a. new text end

new text begin Vehicle purchases. new text end

new text begin For purposes of state
purchasing, the commissioner may award a bid preference to motor
vehicles manufactured in Minnesota. The amount of the
preference must be the same as the amount of the preference
awarded to businesses located in an economically disadvantaged
area.
new text end

Sec. 42.

Minnesota Statutes 2004, section 16C.23, is
amended by adding a subdivision to read:

new text begin Subd. 6a. new text end

new text begin Computers for schools. new text end

new text begin The commissioner may
transfer state surplus computers to Minnesota Computers for
Schools for refurbishing and distribution to any school, school
system, college, or university in Minnesota.
new text end

Sec. 43.

new text begin [16C.231] SURPLUS PROPERTY.
new text end

new text begin Notwithstanding any law to the contrary, the commissioner
may sell a surplus gun used by a state trooper to the trooper
who used the gun in the course of employment. The sale price
must be the fair market value of the gun, as determined by the
commissioner.
new text end

Sec. 44.

Minnesota Statutes 2004, section 240A.02,
subdivision 3, is amended to read:

Subd. 3.

Staff.

The deleted text begin commission deleted text end new text begin governor new text end shall appoint an
executive director, who new text begin serves at the pleasure of the governor.
The executive director new text end may hire other employees authorized by
the commission. The executive director is in the unclassified
service under section 43A.08.

Sec. 45.

new text begin [298.215] IRON RANGE RESOURCES AND
REHABILITATION; EARLY SEPARATION INCENTIVE PROGRAM
AUTHORIZATION.
new text end

new text begin (a) Notwithstanding any law to the contrary, the
commissioner of iron range resources and rehabilitation, in
consultation with the commissioner of employee relations, may
offer a targeted early separation incentive program for
employees of the commissioner who have attained the age of 60
years and have at least five years of allowable service credit
under chapter 352, or who have received credit for at least 30
years of allowable service under the provisions of chapter 352.
new text end

new text begin (b) The early separation incentive program may include one
or more of the following:
new text end

new text begin (1) employer-paid postseparation health, medical, and
dental insurance until age 65; and
new text end

new text begin (2) cash incentives that may, but are not required to be,
used to purchase additional years of service credit through the
Minnesota State Retirement System, to the extent that the
purchases are otherwise authorized by law.
new text end

new text begin (c) The commissioner of iron range resources and
rehabilitation shall establish eligibility requirements for
employees to receive an incentive.
new text end

new text begin (d) The commissioner of iron range resources and
rehabilitation, consistent with the established program
provisions under paragraph (b), and with the eligibility
requirements under paragraph (c), may designate specific
programs or employees as eligible to be offered the incentive
program.
new text end

new text begin (e) Acceptance of the offered incentive must be voluntary
on the part of the employee and must be in writing. The
incentive may only be offered at the sole discretion of the
commissioner of iron range resources and rehabilitation.
new text end

new text begin (f) The cost of the incentive is payable solely by funds
made available to the commissioner of iron range resources and
rehabilitation by law, but only on prior approval of the
expenditures by a majority of the Iron Range Resources and
Rehabilitation Board.
new text end

new text begin (g) This section and section 298.216 are repealed June 30,
2006.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 46.

new text begin [298.216] APPLICATION OF OTHER LAWS.
new text end

new text begin Unilateral implementation of section 298.215 by the
commissioner of iron range resources and rehabilitation is not
an unfair labor practice under chapter 179A.
new text end

Sec. 47.

Minnesota Statutes 2004, section 471.345, is
amended by adding a subdivision to read:

new text begin Subd. 19. new text end

new text begin Used supplies, materials, and equipment. new text end

new text begin When
acquiring supplies, materials, or equipment, a municipality must
consider purchasing used goods if used goods may result in the
best value for the municipality.
new text end

Sec. 48.

new text begin [471.661] OUT-OF-STATE TRAVEL.
new text end

new text begin No elected official of a statutory or home rule charter
city, county, town, school district, regional agency, or other
political subdivision of the state may incur more than $1,000 in
publicly paid costs for a trip outside of Minnesota unless the
costs are approved by a roll-call vote at a public meeting of
the governing board held before the trip.
new text end

Sec. 49.

new text begin [471.701] SALARY DATA.
new text end

new text begin A city or county with a population of more than 15,000 must
annually notify its residents of the names and salaries of its
three highest-paid employees. This notice may be provided on
the homepage of the primary Web site maintained by the political
subdivision for a period of not less than 90 consecutive days,
in a publication of the political subdivision that is
distributed to all residents in the political subdivision, or as
part of the annual notice of proposed property taxes prepared
under section 275.065.
new text end

Sec. 50. new text begin BUILDING LEASE.
new text end

new text begin Notwithstanding any provision of Minnesota Statutes,
section 16B.24, or other law or rule to the contrary, the
commissioner of administration may, without approval of the
State Executive Council, enter into a lease of up to ten years
with a private tenant for use of the state-owned building at 168
Aurora Avenue in the city of St. Paul as a child care and
after-school activity facility. If leased to a faith-based
organization, the program may not promote any particular faith
and must operate in a nondiscriminatory manner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 51. new text begin SALE OF STATE LAND.
new text end

new text begin Subdivision 1. new text end

new text begin State land sales. new text end

new text begin The commissioner of
administration shall coordinate with the head of each department
or agency having control of state-owned land to identify and
sell at least $6,440,000 of state-owned land. Sales should be
completed according to law and as provided in this section as
soon as practicable but no later than June 30, 2007.
Notwithstanding Minnesota Statutes, sections 16B.281 and
16B.282, 94.09 and 94.10, or any other law to the contrary, the
commissioner may offer land for public sale by only providing
notice of lands or an offer of sale of lands to state
departments or agencies, the University of Minnesota, cities,
counties, towns, school districts, or other public entities.
new text end

new text begin Subd. 2. new text end

new text begin Anticipated savings. new text end

new text begin Notwithstanding Minnesota
Statutes, section 94.16, subdivision 3, or other law to the
contrary, the amount of the proceeds from the sale of land under
this section that exceeds the actual expenses of selling the
land must be deposited in the general fund, except as otherwise
provided by the commissioner of finance. Notwithstanding
Minnesota Statutes, section 94.11 or 16B.283, the commissioner
of finance may establish the timing of payments for land
purchased under this section. If the total of all money
deposited into the general fund from the proceeds of the sale of
land under this section is anticipated to be less than
$6,440,000, the governor must allocate the amount of the
difference as reductions to general fund operating expenditures
for other executive agencies for the biennium ending June 30,
2007.
new text end

new text begin Subd. 3. new text end

new text begin Sale of state lands revolving loan
fund. new text end

new text begin $290,000 is appropriated from the general fund in fiscal
year 2006 to the commissioner of administration for purposes of
paying the actual expenses of selling state-owned lands to
achieve the anticipated savings required in this section. From
the gross proceeds of land sales under this section, the
commissioner of administration must cancel the amount of the
appropriation in this subdivision to the general fund by June
30, 2007.
new text end

Sec. 52. new text begin STUDY OF STATE VEHICLES.
new text end

new text begin The commissioner of administration must issue a request for
proposal seeking a private entity to conduct an independent
study of all light vehicles owned by executive branch agencies,
including constitutional offices but not the Minnesota State
Colleges and Universities. The study must include:
new text end

new text begin (1) an inventory of state-owned vehicles, detailing the
type and model of each vehicle, the primary location of each
vehicle, and the primary agency to which each vehicle is
assigned;
new text end

new text begin (2) the cost to the state of purchasing, maintaining, and
operating various types of state-owned vehicles; and
new text end

new text begin (3) an evaluation of the desirability of centralizing the
responsibility for state fleet management in an office of fleet
management within the Department of Administration.
new text end

new text begin The contractor must report the results of the study to the
legislature by January 15, 2006.
new text end

Sec. 53. new text begin REQUEST FOR PROPOSAL; VEHICLES.
new text end

new text begin If the commissioner determines it would be in the best
interests of the state, the commissioner of administration must
issue a request for proposal, seeking a private entity to assume
responsibility for maintenance and management of all vehicles
owned by executive branch agencies. For purposes of this
section, "executive branch agencies" includes constitutional
offices, but not the Minnesota State Colleges and Universities.
The commissioner may expand the scope of the request for
proposal to include private ownership of some or all of the
state vehicles covered by this section.
new text end

Sec. 54. new text begin REQUEST FOR PROPOSAL; FORD BUILDING.
new text end

new text begin The commissioner of administration must issue a request for
proposal, seeking a private entity to lease the Ford Building at
117 University Avenue in St. Paul. Notwithstanding any law to
the contrary, the lease may be for a term of up to 20 years.
The lease documents must provide that the tenant may not tear
down the building and may not alter the historic features of the
facade of the building.
new text end

Sec. 55. new text begin REQUEST FOR PROPOSAL; REAL ESTATE.
new text end

new text begin By October 1, 2005, the commissioner of administration must
issue a request for proposal, seeking a private entity to
assume, at no cost to the state, some or all of the
commissioner's responsibilities for providing real estate
management services to state agencies, including leasing
state-owned space under custodial control of the Department of
Administration to state agencies, arranging for leases of
non-state-owned space on behalf of state agencies, relocation of
state agencies, and sale and rental of state-owned property to
others. Notwithstanding any law to the contrary, the
commissioner may enter into a contract with a private entity to
provide these services, beginning no later than July 1, 2006.
new text end

Sec. 56. new text begin TRAINING SERVICES.
new text end

new text begin During the biennium ending June 30, 2007, state executive
agencies must consider using services provided by the Government
Training Services before contracting with other outside vendors
for similar services.
new text end

Sec. 57. new text begin ASSESSMENT OF PUBLIC ACCESS TO INTERNET-BASED
GOVERNMENT INFORMATION.
new text end

new text begin The commissioner of administration, in partnership with an
institution or institutions of higher education located in
Minnesota, shall assess public access to Internet-based
governmental information and applications and the availability
of Internet access for citizens to perform other Internet-based
activities such as applying for jobs or citizenship, college
entrance scholarships, and other activities that promote
self-sufficiency and civic participation. The commissioner
shall report the results to the legislature by August 1, 2006.
new text end

Sec. 58. new text begin STUDY OF WATER AND SEWER BILLING.
new text end

new text begin The League of Minnesota Cities is requested to convene a
working group to study issues relating to collection of
delinquent water and sewer bills from owners, lessees, and
occupants of rental property. The working group should include
representatives of cities, owners of rental property, municipal
utilities, and tenants. The working group is requested to
report its findings and recommendations to the legislature by
January 15, 2006.
new text end

Sec. 59. new text begin PORTRAITS.
new text end

new text begin The Capitol Area Architectural and Planning Board, in
consultation with the Minnesota Historical Society, must request
the Smithsonian Institution to extend the period during which
the portraits of Julie Finch Gilbert and Cass Gilbert are
displayed in the Capitol building. In negotiating an extension
of the loan period, the board must request that the portraits
remain on display in the Capitol when they are not being
publicly displayed elsewhere, but must recognize that it is
desirable for the portraits to be displayed in other buildings
designed by Cass Gilbert, in conjunction with centennial
celebrations for those buildings.
new text end

Sec. 60. new text begin COYA KNUTSON MEMORIALS.
new text end

new text begin The commissioner of administration shall establish
memorials in the Capitol building and in the city of Oklee
honoring Coya Knutson, who:
new text end

new text begin (1) served two terms in the Minnesota House of
Representatives, representing Red Lake, Pennington, and
Clearwater Counties;
new text end

new text begin (2) was elected to the United States House of
Representatives in 1954, becoming the first woman elected from
Minnesota to the United States Congress;
new text end

new text begin (3) was reelected to Congress in 1956; and
new text end

new text begin (4) died on October 10, 1996.
new text end

new text begin With respect to the memorial in the Capitol building, the
commissioner, with the assistance and approval of the Capitol
Area Architectural and Planning Board, shall select an
appropriate site, establish design criteria, choose a design,
and supervise construction. With respect to the memorial in
Oklee, the commissioner shall request the governing body of the
city of Oklee to designate an appropriate site and, in
consultation with the governing body, establish design criteria,
choose a design, and supervise construction.
new text end

Sec. 61. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 16A.151, subdivision 5;
16A.30; and 240A.08, are repealed. Minnesota Statutes 2004,
section 16B.33, is repealed June 30, 2007.
new text end

ARTICLE 3

PUBLIC EMPLOYMENT

Section 1.

Minnesota Statutes 2004, section 43A.23,
subdivision 1, is amended to read:

Subdivision 1.

General.

The commissioner is authorized
to request bids deleted text begin from carriers or to negotiate with carriers deleted text end and
to enter into contracts with deleted text begin carriers deleted text end new text begin parties new text end which in the
judgment of the commissioner are best qualified to deleted text begin underwrite
and deleted text end new text begin provide new text end service new text begin to new text end the benefit plans. Contracts entered
into deleted text begin with carriers deleted text end are not subject to the requirements of
sections 16C.16 to 16C.19. The commissioner may negotiate
premium rates and coverage deleted text begin provisions with all carriers licensed
under chapters 62A, 62C, and 62D. The commissioner may also
negotiate reasonable restrictions to be applied to all carriers
under chapters 62A, 62C, and 62Ddeleted text end . Contracts to underwrite the
benefit plans must be bid or negotiated separately from
contracts to service the benefit plans, which may be awarded
only on the basis of competitive bids. The commissioner shall
consider the cost of the plans, conversion options relating to
the contracts, service capabilities, character, financial
position, and reputation of the carriers, and any other factors
which the commissioner deems appropriate. Each benefit contract
must be for a uniform term of at least one year, but may be made
automatically renewable from term to term in the absence of
notice of termination by either party. deleted text begin The commissioner shall,
to the extent feasible, make hospital and medical benefits
available from at least one carrier licensed to do business
pursuant to each of chapters 62A, 62C, and 62D. The
commissioner need not provide health maintenance organization
services to an employee who resides in an area which is not
served by a licensed health maintenance organization. The
commissioner may refuse to allow a health maintenance
organization to continue as a carrier. The commissioner may
elect not to offer all three types of carriers if there are no
bids or no acceptable bids by that type of carrier or if the
offering of additional carriers would result in substantial
additional administrative costs.deleted text end A carrier licensed under
chapter 62A is exempt from the taxes imposed by chapter 297I on
premiums paid to it by the state.

All self-insured hospital and medical service products must
comply with coverage mandates, data reporting, and consumer
protection requirements applicable to the licensed carrier
administering the product, had the product been insured,
including chapters 62J, 62M, and 62Q. Any self-insured products
that limit coverage to a network of providers or provide
different levels of coverage between network and nonnetwork
providers shall comply with section 62D.123 and geographic
access standards for health maintenance organizations adopted by
the commissioner of health in rule under chapter 62D.

Sec. 2.

new text begin [43A.346] POSTRETIREMENT OPTION.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section,
"employee" means a person currently occupying a civil service
position in the executive branch of state government, the
Minnesota State Retirement System, or the Office of the
Legislative Auditor, or a person employed by the Metropolitan
Council.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin This section applies to a state or
Metropolitan Council employee who:
new text end

new text begin (1) for at least the five years immediately preceding
separation under clause (2), has been regularly scheduled to
work 1,044 or more hours per year in a position covered by a
pension plan administered by the Minnesota State Retirement
System or the Public Employees Retirement Association;
new text end

new text begin (2) terminates state or Metropolitan Council employment;
new text end

new text begin (3) at the time of termination under clause (2), meets the
age and service requirements necessary to receive an unreduced
retirement annuity from the plan and satisfies requirements for
the commencement of the retirement annuity or, for an employee
under the unclassified employees retirement plan, meets the age
and service requirements necessary to receive an unreduced
retirement annuity from the plan and satisfies requirements for
the commencement of the retirement annuity or elects a lump-sum
payment; and
new text end

new text begin (4) agrees to accept a postretirement option position with
the same or a different appointing authority, working a reduced
schedule that is both (i) a reduction of at least 25 percent
from the employee's number of regularly scheduled work hours;
and (ii) 1,044 hours or less in state or Metropolitan Council
service.
new text end

new text begin Subd. 3. new text end

new text begin Unclassified service. new text end

new text begin Notwithstanding any law
to the contrary, state postretirement option positions shall be
in the unclassified service but shall not be covered by the
Minnesota State Retirement System unclassified employees plan.
new text end

new text begin Subd. 4. new text end

new text begin Annuity reduction not applicable.
new text end

new text begin Notwithstanding any law to the contrary, when an eligible state
employee in a postretirement option position under this section
commences receipt of the annuity, the provisions of section
352.115, subdivision 10, or 353.37 governing annuities of
reemployed annuitants, shall not apply for the duration of
employment in the position.
new text end

new text begin Subd. 5. new text end

new text begin Appointing authority discretion. new text end

new text begin The appointing
authority has sole discretion to determine if and the extent to
which a postretirement option position under this section is
available to a state employee. Any offer of such a position
must be made in writing to the employee by the appointing
authority on a form prescribed by the Department of Employee
Relations and the Minnesota State Retirement System or the
Public Employees Retirement Association. The appointing
authority may not require a person to waive any rights under a
collective bargaining agreement or unrepresented employee
compensation plan as a condition of participation.
new text end

new text begin Subd. 6. new text end

new text begin Duration. new text end

new text begin Postretirement option employment
shall be for an initial period not to exceed one year. During
that period, the appointing authority may not modify the
conditions specified in the written offer without the employee's
agreement, except as required by law or by the collective
bargaining agreement or compensation plan applicable to the
employee. At the end of the initial period, the appointing
authority has sole discretion to determine if the offer of a
postretirement option position will be renewed, renewed with
modifications, or terminated. Postretirement option employment
may be renewed for periods of up to one year, not to exceed a
total duration of five years. No person shall be employed in
one or a combination of postretirement option positions under
this section for a total of more than five years.
new text end

new text begin Subd. 7. new text end

new text begin Copy to fund. new text end

new text begin The appointing authority shall
provide the Minnesota State Retirement System or the Public
Employees Retirement Association with a copy of the offer, the
employee's acceptance of the terms, and any subsequent renewal
agreement.
new text end

new text begin Subd. 8. new text end

new text begin No service credit. new text end

new text begin Notwithstanding any law to
the contrary, a person may not earn service credit in the
Minnesota State Retirement System or the Public Employees
Retirement Association for employment covered under this
section, and employer contributions and payroll deductions for
the retirement fund must not be made based on earnings of a
person working under this section. No change shall be made to a
monthly annuity or retirement allowance based on employment
under this section.
new text end

new text begin Subd. 9. new text end

new text begin Insurance contribution. new text end

new text begin Notwithstanding any law
to the contrary, the appointing authority must make an employer
insurance contribution for a person who is employed in a
postretirement option position under this section and who is not
receiving any other state-paid or Metropolitan Council-paid
employer insurance contribution. The amount of the contribution
must be equal to the percent time worked in the postretirement
option position (hours scheduled to be worked annually divided
by 2,088) times 1.5 times the full employer contribution for
employee-only health and dental coverage. The appointing
authority must contribute that amount to a health reimbursement
arrangement.
new text end

new text begin Subd. 10. new text end

new text begin Subsequent employment. new text end

new text begin If a person has been in
a postretirement option position and accepts any other position
in state or Metropolitan Council-paid service, in the subsequent
state or Metropolitan Council-paid employment the person may not
earn service credit in the Minnesota State Retirement System or
Public Employees Retirement Association, no employer
contributions or payroll deductions for the retirement fund
shall be made, and the provisions of section 352.115,
subdivision 10, or section 353.37, shall apply.
new text end

Sec. 3. new text begin VOLUNTARY UNPAID LEAVE OF ABSENCE.
new text end

new text begin (a) Appointing authorities in state government may allow
each employee to take unpaid leaves of absence for up to 1,040
hours between July 1, 2005, and June 30, 2007. Each appointing
authority approving such a leave shall allow the employee to
continue accruing vacation and sick leave, be eligible for paid
holidays and insurance benefits, accrue seniority, and, if
payments are made under paragraph (b), accrue service credit and
credited salary in the state retirement plans as if the employee
had actually been employed during the time of leave. An
employee covered by the unclassified plan may voluntarily make
the employee contributions to the unclassified plan during the
leave of absence. If the employee makes these contributions,
the appointing authority must make the employer contribution.
If the leave of absence is for one full pay period or longer,
any holiday pay shall be included in the first payroll warrant
after return from the leave of absence. The appointing
authority shall attempt to grant requests for the unpaid leaves
of absence consistent with the need to continue efficient
operation of the agency. However, each appointing authority
shall retain discretion to grant or refuse to grant requests for
leaves of absence and to schedule and cancel leaves, subject to
the applicable provisions of collective bargaining agreements
and compensation plans.
new text end

new text begin (b) To receive eligible service credit and credited salary
in a defined benefit plan, the member shall pay an amount equal
to the applicable employee contribution rates. If an employee
pays the employee contribution for the period of the leave under
this section, the appointing authority must pay the employer
contribution. The appointing authority may, at its discretion,
pay the employee contributions. Contributions must be made in a
time and manner prescribed by the executive director of the
applicable pension plan.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 4. new text begin LABOR AGREEMENTS AND COMPENSATION PLANS.
new text end

new text begin Subdivision 1. new text end

new text begin American federation of state, county, and
municipal employees. new text end

new text begin The arbitration award and labor agreement
between the state of Minnesota and the American Federation of
State, County, and Municipal Employees, unit 8, approved by the
Legislative Coordinating Commission Subcommittee on Employee
Relations on June 14, 2004, is ratified.
new text end

new text begin Subd. 2. new text end

new text begin Minnesota law enforcement association;
arbitration award. new text end

new text begin The arbitration award between the state of
Minnesota and the Minnesota Law Enforcement Association,
approved by the Legislative Coordinating Commission Subcommittee
on Employee Relations on June 14, 2004, is ratified.
new text end

new text begin Subd. 3. new text end

new text begin Higher education services office; compensation
plan. new text end

new text begin The compensation plan for unrepresented employees of the
Higher Education Services Office, approved by the Legislative
Coordinating Commission Subcommittee on Employee Relations on
June 14, 2004, is ratified.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota law enforcement association;
bargaining agreement. new text end

new text begin The collective bargaining agreement
between the state of Minnesota and the Minnesota Law Enforcement
Association, submitted to the Legislative Coordinating
Commission Subcommittee on Employee Relations on September 29,
2004, and implemented after 30 days on October 30, 2004, is
ratified.
new text end

new text begin Subd. 5. new text end

new text begin Inter faculty organization. new text end

new text begin The collective
bargaining agreement between the state of Minnesota and the
Inter Faculty Organization, submitted to the Legislative
Coordinating Commission Subcommittee on Employee Relations on
September 29, 2004, and implemented after 30 days on October 29,
2004, is ratified.
new text end

new text begin Subd. 6. new text end

new text begin Minnesota nurses association. new text end

new text begin The arbitration
award and the collective bargaining agreement between the state
of Minnesota and the Minnesota Nurses Association, approved by
the Legislative Coordinating Commission Subcommittee on Employee
Relations on December 20, 2004, is ratified.
new text end

new text begin Subd. 7. new text end

new text begin Teachers retirement association. new text end

new text begin The proposal
to increase the salary of the executive director of the Teachers
Retirement Association, as modified and approved by the
Legislative Coordinating Commission Subcommittee on Employee
Relations on December 20, 2004, is ratified.
new text end

new text begin Subd. 8. new text end

new text begin Minnesota state retirement system. new text end

new text begin The proposal
to increase the salary of the executive director of the
Minnesota State Retirement System, as modified and approved by
the Legislative Coordinating Commission Subcommittee on Employee
Relations on December 20, 2004, is ratified.
new text end

new text begin Subd. 9.new text end

new text begin Public employees retirement association.new text end

new text begin The
proposal to increase the salary of the executive director of the
Public Employees Retirement Association, as modified and
approved by the Legislative Coordinating Commission Subcommittee
on Employee Relations on December 20, 2004, is ratified.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

ARTICLE 4

STATE MANDATES

Section 1.

new text begin [471B.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For purposes of this chapter, the
terms defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Local government. new text end

new text begin "Local government" means a
county, town, school district, or statutory or home rule charter
city.
new text end

new text begin Subd. 3. new text end

new text begin Local government of the same kind. new text end

new text begin "Local
government of the same kind" means any category of the
following: all cities, all counties, all school districts, or
all towns.
new text end

new text begin Subd. 4. new text end

new text begin Same class. new text end

new text begin "Same class" means all cities of
the same class.
new text end

new text begin Subd. 5. new text end

new text begin School district. new text end

new text begin "School district" means a
common, independent, or special school district and excludes
charter schools.
new text end

new text begin Subd. 6. new text end

new text begin State mandate. new text end

new text begin "State mandate" means a state
law or rule specifically directed at or related to local
government structure, operation, services, programs, or
financing that:
new text end

new text begin (1) imposes a cost on a local government, whether or not
the state appropriates money for the local government to cover
the total costs of the mandate, or specifically authorizes the
local government to impose a tax or fee to cover the costs;
new text end

new text begin (2) decreases revenue available to a local government
without a commensurate decrease in services and programs
required by the law or rule;
new text end

new text begin (3) makes a local government, or its officers or employees,
civilly or criminally liable for failure to follow or enforce
the law or rule;
new text end

new text begin (4) restricts the ability of a local government to
establish services, programs, policies, plans, or goals, or
restricts its ability to raise revenue or finance its services,
programs, policies, plans, or goals; or
new text end

new text begin (5) implements or interprets federal law and, by its
implementation or interpretation, increases or decreases
program, service, or funding levels.
new text end

Sec. 2.

new text begin [471B.02] REFORM OR OPT OUT RESOLUTION AND
PROCEDURES.
new text end

new text begin Subdivision 1. new text end

new text begin Local procedure. new text end

new text begin (a) A local government
may, by written resolution of the governing body after public
notice and hearing, propose that a state mandate imposed on all
local governments of the same kind or class should not apply to
it. A local government also may include in a resolution
recommendations for reforming a mandate. A local government
must adopt a separate resolution for each mandate that it
proposes should not apply to it. The resolution must:
new text end

new text begin (1) specifically cite the state law or rule that imposes
the mandate on the local government;
new text end

new text begin (2) identify any costs of complying with the mandate and
the total amount of federal and state funds available for
complying with the mandate;
new text end

new text begin (3) state the reasons the local government needs to opt out
of the state mandate and may recommend mandate reforms to
achieve greater efficiencies; and
new text end

new text begin (4) indicate how the local government will otherwise meet
the objectives of the mandate or why the objectives do not apply
to the local government.
new text end

new text begin (b) Before voting on the resolution, the governing body
must give adequate public notice of the proposed resolution,
including information on whether state or federal funding for
the local government might be adversely affected. The governing
body must hold at least one public hearing on the proposed
resolution and afford the public opportunity for comment. The
governing body must encourage public participation in the
hearing in order to determine the extent of public support for
the proposed resolution.
new text end

new text begin (c) The proponent of the proposed resolution at least must
identify at the hearing:
new text end

new text begin (1) the costs of complying with the mandate that exceed the
state and federal funds allocated to the district for purposes
of the mandate and recommend reforms for achieving greater
efficiencies;
new text end

new text begin (2) any potential loss of state or federal revenue that
might result from opting out of the state mandate;
new text end

new text begin (3) other policy issues or effects that might result;
new text end

new text begin (4) the purposes for which the mandate was imposed;
new text end

new text begin (5) any persons or categories of person who will be
adversely affected if the mandate is not complied with; and
new text end

new text begin (6) the costs and benefits of the mandate compared to the
costs and benefits of inaction.
new text end

new text begin (d) A local government that adopts a resolution must file
the resolution with the state auditor. At the time of filing,
the local government must pay the state auditor a fee to cover
actual costs the state auditor incurs in performing the duties
under this section. The amount of the fee is as follows:
new text end

new text begin (1) for each resolution filed by a local government with a
population over 100,000, $500;
new text end

new text begin (2) for each resolution filed by a local government with a
population over 20,000 and not more than 100,000, $350;
new text end

new text begin (3) for each resolution filed by a local government with a
population over 10,000 and not more than 20,000, $200; and
new text end

new text begin (4) for each resolution filed by a local government with a
population of not more than 10,000, $50.
new text end

new text begin All fees collected under this section are appropriated to the
state auditor for the purposes of this section. On July 1,
2005, and each July 1 thereafter, using the powers granted under
chapter 6, the auditor must determine the actual costs of
performing the duties under this section and adjust the amount
of the fee to reflect the auditor's actual costs.
new text end

new text begin Subd. 2. new text end

new text begin State procedure. new text end

new text begin The state auditor must:
new text end

new text begin (1) list on the state auditor's Web site all state mandates
cited in a resolution filed with the state auditor, identifying
for each mandate the local governments that adopted and filed a
resolution to opt out of a mandate, and whether the threshold
under subdivision 3 for opting out is met;
new text end

new text begin (2) keep a running total of the number and percent of local
governments of the same kind and, if applicable, same class,
that have filed a resolution to opt out; and
new text end

new text begin (3) notify the legislature when the threshold under
subdivision 3 for opting out is met.
new text end

new text begin Subd. 3. new text end

new text begin Threshold and certification for opting out;
legislative oversight. new text end

new text begin (a) The state auditor must notify the
house of representatives and senate when the auditor certifies
that the minimum number of local governments of the same kind,
and, if applicable, same class, file resolutions under the
requirements of this chapter. The minimum number is set in
paragraph (c). The legislature must consider at least seven
certified opt out or reform proposals from each government of
the same kind or class listed in paragraph (c) submitted as a
notice from the auditor delivered to the legislature before the
regular session convenes in any year. The resolutions shall not
have any effect for implementation unless approved by law under
this subdivision.
new text end

new text begin (b) The house of representatives and senate must adopt
rules ensuring that bills to specifically address at least seven
mandates for which the minimum number of resolutions have been
filed are given a priority status and presented to the house and
senate for consideration and action by that body in a timely
manner during the regular session that year.
new text end

new text begin (c) The minimum number of local governments of the same
kind or class are:
new text end

new text begin (1) six counties;
new text end

new text begin (2) 25 home rule charter cities;
new text end

new text begin (3) 50 statutory cities;
new text end

new text begin (4) two cities of the first class;
new text end

new text begin (5) 14 cities of the second class;
new text end

new text begin (6) 11 cities of the third class;
new text end

new text begin (7) 50 cities of the fourth class;
new text end

new text begin (8) 75 towns; and
new text end

new text begin (9) 24 school districts.
new text end

new text begin Subd. 4. new text end

new text begin Opt out or reform implementation and later
opting out or reforms. new text end

new text begin After initial opt-out resolutions are
approved by the legislature and take effect, other local
governments of the same kind and, if applicable, same class, may
file resolutions to opt out of the same mandate. The
later-filed resolutions must be consistent with the law enacted
in response to the initial opt-out resolutions and later-filed
resolutions are only effective to the extent authorized by that
law. Each of these takes effect 30 days after the auditor
accepts the filing.
new text end

ARTICLE 5

MINNEAPOLIS TEACHER PENSIONS

Section 1.

Minnesota Statutes 2004, section 354A.08, is
amended to read:

354A.08 AUTHORIZED INVESTMENTS.

new text begin (a) new text end A teachers retirement fund association may receive,
hold, and dispose of real estate or personal property acquired
by it, whether the acquisition was by purchase, or any other
lawful means, as provided in this chapter or in the
association's articles of incorporation. In addition to other
authorized real estate investments, an association may also
invest funds in Minnesota situs nonfarm real estate ownership
interests or loans secured by mortgages or deeds of trust.

new text begin (b) All or a portion of the assets of a first class city
teacher retirement fund association may be invested by the State
Board of Investment under section 11A.14.
new text end

Sec. 2.

Minnesota Statutes 2004, section 354A.12,
subdivision 3a, is amended to read:

Subd. 3a.

Special direct state aid to first class city
teachers retirement fund associations.

(a) deleted text begin In fiscal year 1998,
the state shall pay $4,827,000 to the St. Paul Teachers
Retirement Fund Association, $17,954,000 to the Minneapolis
Teachers Retirement Fund Association, and $486,000 to the Duluth
Teachers Retirement Fund Association.deleted text end In each deleted text begin subsequent deleted text end fiscal
year, deleted text begin these payments deleted text end new text begin the state shall pay new text end to the first class city
teachers retirement fund associations deleted text begin must be $2,827,000
deleted text end new text begin $2,967,000 new text end for new text begin the new text end St. Pauldeleted text begin , $12,954,000 deleted text end new text begin Teachers Retirement
Fund Association and $13,300,000 new text end for new text begin the new text end Minneapolisdeleted text begin , and
$486,000 for Duluth deleted text end new text begin Teachers Retirement Fund Associationnew text end .

(b) The direct state aids under this subdivision are
payable October 1 annually. The commissioner of finance shall
pay the direct state aid. The amount required under this
subdivision is appropriated annually from the general fund to
the commissioner of finance.

new text begin (c) The direct state aid for the Minneapolis Teachers
Retirement Fund Association is governed by section 354A.121.
new text end

Sec. 3.

Minnesota Statutes 2004, section 354A.12,
subdivision 3b, is amended to read:

Subd. 3b.

Special direct state matching aid to the
minneapolis teachers retirement fund association.

(a) Special
School District No. 1 may make an additional employer
contribution to the Minneapolis Teachers Retirement Fund
Association. The city of Minneapolis may make a contribution to
the Minneapolis Teachers Retirement Fund Association. This
contribution may be made by a levy of the board of estimate and
taxation of the city of Minneapolis and the levy, if made, is
classified as that of a special taxing district for purposes of
sections 275.065 and 276.04, and for all other property tax
purposes.

(b) For every $1,000 contributed in equal proportion by
Special School District No. 1 and by the city of Minneapolis to
the Minneapolis Teachers Retirement Fund Association under
paragraph (a), the state shall pay to the Minneapolis Teachers
Retirement Fund Association $1,000, but not to exceed $2,500,000
in total in fiscal year 1994. The superintendent of Special
School District No. 1, the mayor of the city of Minneapolis, and
the executive director of the Minneapolis Teachers Retirement
Fund Association shall jointly certify to the commissioner of
finance the total amount that has been contributed by Special
School District No. 1 and by the city of Minneapolis to the
Minneapolis Teachers Retirement Fund Association. Any
certification to the commissioner of education must be made
quarterly. If the total certifications for a fiscal year exceed
the maximum annual direct state matching aid amount in any
quarter, the amount of direct state matching aid payable to the
Minneapolis Teachers Retirement Fund Association must be limited
to the balance of the maximum annual direct state matching aid
amount available. The amount required under this paragraph,
subject to the maximum direct state matching aid amount, is
appropriated annually to the commissioner of finance. new text begin The state
matching aid is governed by section 354A.121.
new text end

Sec. 4.

new text begin [354A.121] INVESTMENT PROCEDURES FOR STATE AID TO
MINNEAPOLIS TEACHERS RETIREMENT PLAN.
new text end

new text begin (a) Notwithstanding any provision of law to the contrary,
special direct state aid to the Minneapolis Teachers Retirement
Fund Association under section 354A.12, subdivision 3a or 3b,
and amortization or supplementary amortization state aid
reallocated to the Minneapolis Teachers Retirement Fund
Association, must be transferred and invested as provided in
this section.
new text end

new text begin (b) State aid for the Minneapolis Teachers Retirement Fund
Association referenced in paragraph (a) must be transferred to
the executive director of the State Board of Investment for
investment.
new text end

new text begin (c) If the assets of the Minneapolis teachers retirement
fund other than the assets invested by the State Board of
Investment are insufficient to pay retirement annuities and
benefits that are due and payable or the reasonable and
necessary administrative expenses of the retirement plan that
are due and payable, the executive director of the State Board
of Investment shall transfer the required amount to meet that
insufficiency to the chief administrative officer of the
Minneapolis Teachers Retirement Fund Association.
new text end

new text begin (d) For purposes of annual actuarial valuations and annual
financial reports, the shares in the Minnesota supplemental
investment fund owned by the Minneapolis teachers retirement
fund must be considered an asset of the Minneapolis teachers
retirement fund.
new text end

Sec. 5.

new text begin [354A.281] MINNEAPOLIS TEACHERS RETIREMENT FUND
ASSOCIATION; POSTRETIREMENT ADJUSTMENTS.
new text end

new text begin On January 1, 2006, and every January 1 thereafter,
eligible annuitants and benefit recipients of the Minneapolis
Teachers Retirement Fund Association are entitled to a
percentage postretirement adjustment equal to the percentage
adjustment payable under section 11A.18. Eligibility for a
postretirement adjustment must be governed by section 11A.18,
subdivision 9, paragraphs (c), clause (2), and (e).
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes, section 354A.28, is repealed.
new text end

new text begin (b) Article 30, sections 30.3, 30.4, and 30.5, of the
restated articles of incorporation of the Minneapolis Teachers
Retirement Fund Association are repealed.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 are effective July 1, 2005.
new text end

ARTICLE 6

MILITARY

Section 1.

Minnesota Statutes 2004, section 43A.183, is
amended to read:

43A.183 PAYMENT OF SALARY DIFFERENTIAL FOR RESERVE FORCES
WHO REPORTED FOR ACTIVE SERVICE.

(a) Each agency head shall pay to each eligible member of
the National Guard or other reserve component of the new text begin United
States new text end Armed Forces deleted text begin of the United States deleted text end an amount equal to the
deleted text begin difference between the member's basic active duty military
salary and the salary the member would be paid as an active
state employee, including any adjustments the member would have
received if not on leave of absence deleted text end new text begin person's salary differential
for each month or portion of month that the person is ordered to
serve in active military service. The person's salary
differential is calculated as the difference between:
new text end

new text begin (1) the person's monthly total gross earnings as an active
state employee, excluding any overtime pay received but
including all other earnings, averaged over the last three full
months of the person's active state employment prior to
reporting to active military service, and including any
additional salary or earnings adjustments that the person would
have received at anytime during the person's military leave had
the person been serving as an active state employee during that
time; and
new text end

new text begin (2) the person's monthly base pay in active military
servicenew text end .

This payment may be made only to a person deleted text begin whose basic
active duty military salary is less than the salary the person
would be paid as an active state employee deleted text end new text begin for whom the amount in
clause (1) is greater than the amount in clause (2)new text end . Payments
must be made at the intervals at which the member received pay
as a state employeenew text begin , except that any back pay due under this
section may be paid as a lump sumnew text end . Payment under this section
must not extend beyond four years from the date the employee
reported for active service, plus any additional time the
employee may be legally required to serve. new text begin An eligible member
of the National Guard or other reserve component of the United
States Armed Forces may apply for the pay differential benefits
authorized under this section prior to, during, or following the
person's active military service on or after May 29, 2003.
new text end

(b) An eligible member of the reserve components of the
new text begin United States new text end Armed Forces deleted text begin of the United States deleted text end is a reservist
or National Guard member who was an employee of the state of
Minnesota at the time the member deleted text begin reported deleted text end new text begin took military leave
under section 192.261 to report new text end for active new text begin military new text end service.

(c) For deleted text begin the deleted text end purposes of this section, an employee of the
state is an employee of the executive, judicial, or legislative
branch of state government or an employee of the Minnesota State
Retirement System, the Public Employee Retirement Association,
or the Teachers Retirement Association.

(d) For purposes of this section, the term "active service"
has the meaning given in section 190.05, subdivision 5, but
excludes service performed exclusively for purposes of:

(1) basic combat training, advanced individual training,
annual training, and periodic inactive duty training;

(2) special training periodically made available to reserve
members; deleted text begin and
deleted text end

(3) service performed in accordance with section 190.08,
subdivision 3new text begin ; and
new text end

new text begin (4) service performed as part of the active guard/reserve
program pursuant to United States Code, title 32, section
502(f), or other applicable authoritynew text end .

(e) The agency head must continue the employee's enrollment
in health and dental coverage, and the employer contribution
toward that coverage, until the employee deleted text begin is covered by health
and dental coverage provided by the armed forces deleted text end new text begin reports for
active military servicenew text end . If the employee had elected dependent
coverage for health or dental coverage as of the time that the
employee reported for active service, the agency head must offer
the employee the option to continue the dependent coverage at
the employee's own expense. The agency head must permit the
employee to continue participating in any pretax account in
which the employee participated when the employee reported for
active service, to the extent of employee pay available for that
purpose. new text begin An employee who has opted to continue a permitted
benefit may cancel that continuation at anytime during the
person's military leave by written notification from the
employee, or from the employee's designated attorney-in-fact
under a power of attorney, to the agency head or the
commissioner of employee relations.
new text end

(f) new text begin The agency head must periodically inform in writing all
agency personnel who are or may be members of the reserve
component of the United States Armed Forces of the benefits
provided under this section and of the procedures relevant to
securing those benefits, including, but not limited to, any
procedures regarding the continuation and discontinuation of any
optional deductions. It will suffice to meet this requirement
if the agency head posts the information on the agency Web site
in a highly recognizable manner that can be easily found and
understood by the employees to whom it might apply.
new text end

new text begin Upon being ordered to active duty, the employee must notify
the agency head of that order in a timely manner and must
provide to the agency head the name of and contact information
for the employee's designated attorney-in-fact under a power of
attorney. Prior to the commencement of the employee's military
leave, the agency head must ensure the agency's receipt of that
information and immediately convey that information to the
commissioners of finance and employee relations, including any
subsequent change in that designation by the employee. When
communicating with the employee during the person's military
leave, the agency head and the commissioners of finance and
employee relations must immediately provide a copy of the
communication to the employee's designated attorney-in-fact.
Those officials must also honor requests for information or
other appropriate directives from that designee on behalf of the
employee during the employee's military leave.
new text end

new text begin (g) new text end The commissioners of employee relations and finance
shall adopt procedures required to implement this section. The
procedures are exempt from chapter 14.

deleted text begin (g) deleted text end new text begin (h) new text end This section does not apply to a judge, legislator,
or constitutional officer of the executive branch.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies to state employees serving
in active military service on or after May 29, 2003.
new text end

Sec. 2.

Minnesota Statutes 2004, section 190.16, is
amended by adding a subdivision to read:

new text begin Subd. 6a. new text end

new text begin Rental of camp ripley facilities. new text end

new text begin The adjutant
general or the adjutant general's designee may rent buildings or
other facilities at Camp Ripley to persons under terms and
conditions specified by the adjutant general or designee.
Subject to any prohibitions or restrictions in any agreement
between the United States and the state of Minnesota, proceeds
of rentals under this subdivision must be applied as follows:
new text end

new text begin (1) payment of increased utilities, maintenance, or other
costs directly attributable to the rental;
new text end

new text begin (2) other operating and maintenance or repair costs for the
building or facility being rented; and
new text end

new text begin (3) maintenance and improvement of buildings or other
facilities at Camp Ripley.
new text end

new text begin Rentals under this subdivision must be made under terms and
conditions that do not conflict with the use of Camp Ripley for
military purposes.
new text end

Sec. 3.

Minnesota Statutes 2004, section 192.19, is
amended to read:

192.19 RETIRED MEMBERS MAY BE ORDERED TO ACTIVE DUTY.

The commander-in-chief or the adjutant general may assign
officers, warrant officers, and enlisted personnel on the
retired list, with their consent, to temporary active service in
recruiting, upon courts-martial, courts of inquiry and boards,
to staff duty not involving service with troops, or in charge of
a military reservation left temporarily without officers. Such
personnel while so assigned shall receive the full pay and
allowances of their grades at time of retirementnew text begin , except that
the commander-in-chief or the adjutant general may authorize pay
and allowances in a higher grade when it is considered
appropriate based on special skills or experience of the person
being assigned to temporary active servicenew text end .

Sec. 4.

Minnesota Statutes 2004, section 192.261,
subdivision 1, is amended to read:

Subdivision 1.

Leave of absence without pay.

Subject to
the conditions hereinafter prescribed, any officer or employee
of the state or of any political subdivision, municipal
corporation, or other public agency of the state who engages in
active service in time of war or other emergency declared by
proper authority in any of the military or naval forces of the
state or of the United States for which leave is not otherwise
allowed by law shall be entitled to leave of absence from the
officer's or employee's public office or employment without pay
during such service, with right of reinstatement as hereinafter
provided. Such leave of absence without pay, whether heretofore
or hereafter, shall not extend beyond four years plus such
additional time in each case as such an officer or employee may
be required to serve pursuant to law. This shall not be
construed to preclude the allowance of leave with pay for such
service to any person entitled thereto under section new text begin 43A.183,
new text end 192.26new text begin , or 471.975new text end . Nothing in this section contained shall
affect any of the provisions or application of section 352.27
nor of section 192.26 to 192.264, or any laws amendatory
thereof, insofar as such sections pertain to the state employees
retirement association or its members.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies to state employees serving
in active military service on or after May 29, 2003.
new text end

Sec. 5.

Minnesota Statutes 2004, section 192.261,
subdivision 2, is amended to read:

Subd. 2.

Reinstatement.

Except as otherwise hereinafter
provided, upon the completion of such service such officer or
employee shall be reinstated in the public position, which was
held at the time of entry into such service, or a public
position of like seniority, status, and pay if such is available
at the same salary which the officer or employee would have
received if the leave had not been taken, upon the following
conditions: (1) that the position has not been abolished or
that the term thereof, if limited, has not expired; (2) that the
officer or employee is not physically or mentally disabled from
performing the duties of such position; (3) that the officer or
employee makes written application for reinstatement to the
appointing authority within 90 days after termination of such
service, or 90 days after discharge from hospitalization or
medical treatment which immediately follows the termination of,
and results from, such service; provided such application shall
be made within one year and 90 days after termination of such
service notwithstanding such hospitalization or medical
treatment; (4) that the officer or employee submits an honorable
discharge or other form of release by proper authority
indicating that the officer's or employee's military or naval
service was satisfactory. Upon such reinstatement the officer
or employee shall have the same rights with respect to accrued
and future seniority status, efficiency rating, vacation, sick
leave, and other benefits as if that officer or employee had
been actually employed during the time of such leave. new text begin The
officer or employee reinstated under this section is entitled to
vacation and sick leave with pay as provided in any applicable
civil service rules, collective bargaining agreement, or
compensation plan, and accumulates vacation and sick leave from
the time the person enters active military service until the
date of reinstatement without regard to any otherwise applicable
limits on civil service rules limiting the number of days which
may be accumulated.new text end No officer or employee so reinstated shall
be removed or discharged within one year thereafter except for
cause, after notice and hearing; but this shall not operate to
extend a term of service limited by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies to any public officer or
public employee serving in active military service on or after
September 11, 2001.
new text end

Sec. 6.

Minnesota Statutes 2004, section 192.501,
subdivision 2, is amended to read:

Subd. 2.

Tuition and textbook reimbursement grant
program.

(a) The adjutant general shall establish a program to
provide tuition and textbook reimbursement grants to eligible
members of the Minnesota National Guard within the limitations
of this subdivision.

(b) Eligibility is limited to a member of the National
Guard who:

(1) is serving satisfactorily as defined by the adjutant
general;

(2) is attending a postsecondary educational institution,
as defined by section 136A.15, subdivision 6, including a
vocational or technical school operated or regulated by this
state or another state or province; and

(3) provides proof of satisfactory completion of
coursework, as defined by the adjutant general.

deleted text begin In addition,deleted text end new text begin (c) Notwithstanding paragraph (b), clause (1),
for a person who:
new text end

new text begin (1) has satisfactorily completed the person's service
contract in the Minnesota National Guard or the portion of it
involving selective reserve status, for which any part of that
service was spent serving honorably in federal active service or
federally funded state active service since September 11, 2001,
the person's eligibility is extended for a period of two years,
plus an amount of time equal to the duration of that person's
active service, subject to the credit hours limit in paragraph
(h); or
new text end

new text begin (2) has served honorably in the Minnesota National Guard
and has been separated or discharged from that organization due
to a service-connected injury, disease, or disability, the
eligibility period is extended for eight years beyond the date
of separation, subject to the credit hours limit in paragraph
(h).
new text end

new text begin (d) Notwithstanding paragraph (b), clause (1), a member or
former member of the Minnesota National Guard who is eligible
for tuition and textbook reimbursement grant benefits under this
section and has eligibility remaining under the credit hours
limit in paragraph (h), and who has a service-connected
disability rating of 30 percent or more as certified by the
United States Department of Veterans Affairs, may transfer the
person's remaining eligibility to the person's spouse for use in
place of the member or former member, subject to the credit
hours limit in paragraph (h) for the member and spouse combined,
and subject to any time limits applicable to the member or
former member. Notwithstanding any such transfer of grant
benefits by the member or former member to the person's spouse,
the person may revoke that transfer at anytime; however, any
such revocation does not restore the credit hours of eligibility
already used by the spouse.
new text end

new text begin (e) new text end If a member of the Minnesota National Guard is killed
in the line of state active service or federally funded state
active service, deleted text begin as defined in section 190.05, subdivisions 5a
and 5b,deleted text end the member's surviving spouse, and any surviving
dependent who has not yet reached 24 years of age, is eligible
for a tuition and textbook reimbursement grantnew text begin , with each
eligible person independently subject to the credit hours limit
in paragraph (h)new text end .

new text begin (f) new text end The adjutant general may, within the limitations of
deleted text begin this paragraph deleted text end new text begin paragraphs (b) to (e) new text end and other applicable laws,
determine additional eligibility criteria for the grant, and
must specify the criteria in department regulations and publish
changes as necessary.

deleted text begin (c) deleted text end new text begin (g) new text end The amount of a tuition and textbook reimbursement
grant must be specified on a schedule as determined and
published in department regulations by the adjutant general, but
is limited to a maximum of an amount equal to the greater of:

(1) up to 100 percent of the cost of tuition for lower
division programs in the College of Liberal Arts at the Twin
Cities campus of the University of Minnesota in the most recent
academic year; or

(2) up to 100 percent of the cost of tuition for the
program in which the person is enrolled at that Minnesota public
institution, or if that public institution is outside the state
of Minnesota, for the cost of a comparable program at the
University of Minnesota, except that in the case of a survivor
as defined in paragraph (b), the amount of the tuition and
textbook reimbursement grant for coursework satisfactorily
completed by the person is limited to 100 percent of the cost of
tuition for postsecondary courses at a Minnesota public
educational institution.

deleted text begin Paragraph deleted text end new text begin (h) Paragraphs new text end (b) new text begin to (f) new text end notwithstanding, a
person is no longer eligible for a grant under this subdivision
once the person has received grants under this subdivision for
the equivalent of 208 quarter credits or 144 semester credits of
coursework.

deleted text begin (d) deleted text end new text begin (i) new text end Tuition and textbook reimbursement grants received
under this subdivision may not be considered by the Minnesota
Higher Education Services Office or by any other state board,
commission, or entity in determining a person's eligibility for
a scholarship or grant-in-aid under sections 136A.095 to
136A.1311.

deleted text begin (e) deleted text end new text begin (j) new text end If a member fails to complete a term of enlistment
during which a tuition and textbook reimbursement grant was
paid, the adjutant general may seek to recoup a prorated amount
as determined by the adjutant general. new text begin However, this authority
does not apply to a person whose separation from the Minnesota
National Guard is due to a medical condition or financial
hardship.
new text end

new text begin (k) For purposes of this section, the terms "active
service," "state active service," "federally funded state active
service," and "federal active service" have the meanings given
in section 190.05, subdivisions 5 to 5c, respectively, except
that for purposes of paragraph (c), clause (1), these terms
exclude service performed exclusively for purposes of:
new text end

new text begin (1) basic combat training, advanced individual training,
annual training, and periodic inactive duty training;
new text end

new text begin (2) special training periodically made available to reserve
members;
new text end

new text begin (3) service performed in accordance with section 190.08,
subdivision 3; and
new text end

new text begin (4) service performed as part of the active guard/reserve
program pursuant to United States Code, title 32, section
502(f), or other applicable authority.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies to persons who have served
in the Minnesota National Guard at anytime since September 11,
2001, and if the person has died in the line of service, to the
person's surviving spouse and dependents as well.
new text end

Sec. 7.

Minnesota Statutes 2004, section 193.29,
subdivision 3, is amended to read:

Subd. 3.

Joint boards.

In all cases in which more than
one company or other unit of the military forces shall occupy
the same armory, the armory board shall consist of
deleted text begin officers deleted text end new text begin military personnel new text end assigned to the units or
organizations quartered therein. The adjutant general shall
designate by order from time to time the representatives of each
unit quartered therein to comprise the armory board for each
armory. In the discretion of the adjutant general, the
membership of the board may be comprised of officers, warrant
officers, and enlisted personnel and may be changed from time to
time so as to give the several organizations quartered therein
proper representation on the board.

Sec. 8.

Minnesota Statutes 2004, section 193.30, is
amended to read:

193.30 deleted text begin COMMANDING OFFICERS deleted text end new text begin MANAGEMENT new text end OF ARMORY BOARD.

The senior deleted text begin officer deleted text end new text begin member new text end on each armory board shall be the
chair, and the junior deleted text begin officer deleted text end new text begin member new text end thereof shall be the
recorder. A record of the proceedings of the board shall be
kept, and all motions offered, whether seconded or not, shall be
put to a vote and the result recorded. In the case of a tie
vote the adjutant general, upon the request of any member, shall
decide. The governor may make and alter rules for the
government of armory boards, officers, and other persons having
charge of armories, arsenals, or other military property of the
state.

Sec. 9.

Minnesota Statutes 2004, section 193.31, is
amended to read:

193.31 deleted text begin SENIOR OFFICER TO deleted text end CONTROL new text begin OF new text end DRILL HALL.

The senior deleted text begin officer deleted text end new text begin member new text end of any company or other
organization assembling at an armory for drill or instruction
shall have control of the drill hall or other portion of the
premises used therefor during such occupancy, subject to the
rules prescribed for its use and the orders of that deleted text begin officer's
deleted text end new text begin member's new text end superior. Any person who intrudes contrary to orders,
or who interrupts, molests, or insults any troops so assembled,
or who refuses to leave the premises when properly requested so
to do, shall be guilty of a misdemeanor. Nothing in this
section shall prevent reasonable inspection of the premises by
the proper municipal officer, or by the lessor thereof in
accordance with the terms of the lease.

Sec. 10.

Minnesota Statutes 2004, section 471.975, is
amended to read:

471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.

(a) Except as provided in paragraph (b), a statutory or
home rule charter city, county, town, or other political
subdivision may pay to each eligible member of the National
Guard or other reserve component of the armed forces of the
United States an amount equal to the difference between the
member's basic active duty military salary and the salary the
member would be paid as an active political subdivision
employee, including any adjustments the member would have
received if not on leave of absence. This payment may be made
only to a person whose basic active duty military salary is less
than the salary the person would be paid as an active political
subdivision employee. Back pay authorized by this section may
be paid in a lump sum. Payment under this section must not
extend beyond four years from the date the employee reported for
active service, plus any additional time the employee may be
legally required to serve.

(b) Subject to the limits under paragraph (g), each school
district shall pay to each eligible member of the National Guard
or other reserve component of the armed forces of the United
States an amount equal to the difference between the member's
basic active duty military salary and the salary the member
would be paid as an active school district employee, including
any adjustments the member would have received if not on leave
of absence. The pay differential must be based on a comparison
between the member's daily rate of active duty pay, calculated
by dividing the member's military monthly salary by the number
of paid days in the month, and the member's daily rate of pay
for the member's school district salary, calculated by dividing
the member's total school district salary by the number of
contract days. The member's salary as a school district
employee must include the member's basic salary and any
additional salary the member earns from the school district for
cocurricular activities. The differential payment under this
paragraph must be the difference between the daily rates of
military pay times the number of school district contract days
the member misses because of military active duty. This payment
may be made only to a person whose basic active duty military
salary is less than the salary the person would be paid as an
active school district employee. Payments may be made at the
intervals at which the member received pay as a school district
employee. Payment under this section must not extend beyond
four years from the date the employee reported for active
service, plus any additional time the employee may be legally
required to serve.

(c) An eligible member of the reserve components of the
armed forces of the United States is a reservist or National
Guard member who was an employee of a political subdivision at
the time the member reported for active service on or after May
29, 2003, or who is on active service on May 29, 2003.

(d) deleted text begin Notwithstanding other obligations under law and deleted text end Except
as provided in paragraph (e) new text begin and elsewhere in Minnesota
Statutesnew text end , a statutory or home rule charter city, county, town,
or other political subdivision has total discretion regarding
employee benefit continuation for a member who reports for
active service and the terms and conditions of any benefit.

(e) A school district must continue the employee's
enrollment in health and dental coverage, and the employer
contribution toward that coverage, until the employee is covered
by health and dental coverage provided by the armed forces. If
the employee had elected dependent coverage for health or dental
coverage as of the time that the employee reported for active
service, a school district must offer the employee the option to
continue the dependent coverage at the employee's own expense.
A school district must permit the employee to continue
participating in any pretax account in which the employee
participated when the employee reported for active service, to
the extent of employee pay available for that purpose.

(f) For purposes of this section, "active service" has the
meaning given in section 190.05, subdivision 5, but excludes
service performed exclusively for purposes of:

(1) basic combat training, advanced individual training,
annual training, and periodic inactive duty training;

(2) special training periodically made available to reserve
members; and

(3) service performed in accordance with section 190.08,
subdivision 3.

(g) A school district making payments under paragraph (b)
shall place a sum equal to any difference between the amount of
salary that would have been paid to the employee who is
receiving the payments and the amount of salary being paid to
substitutes for that employee into a special fund that must be
used to pay or partially pay the deployed employee's payments
under paragraph (b). A school district is required to pay only
this amount to the deployed school district employee.

new text begin EFFECTIVE DATE. new text end

ARTICLE 7

VETERANS

Section 1.

new text begin [196.28] HEPATITIS C EDUCATIONAL MATERIALS.
new text end

new text begin The commissioner of veterans affairs may develop and make
available to physicians, other health care providers, veterans,
and other persons at high risk for hepatitis C (HCV) educational
materials, in written and electronic forms, on the diagnosis,
treatment, and prevention of HCV. The educational materials may
include recommendations of the federal Centers for Disease
Control and Prevention and any other person or entity having
knowledge on HCV, including the American Liver Foundation. The
materials shall be written in terms understandable by members of
the general public.
new text end

Sec. 2.

Minnesota Statutes 2004, section 197.608,
subdivision 5, is amended to read:

Subd. 5.

Qualifying uses.

The commissioner shall consult
with the Minnesota Association of County Veterans Service
Officers in developing a list of qualifying uses for grants
awarded under this program. new text begin The commissioner is authorized to
use any unexpended funding for this program to provide training
and education for county veterans service officers.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 3.

new text begin [197.80] LIMITATION ON CONDEMNATION.
new text end

new text begin No county in the metropolitan area may acquire by eminent
domain property owned or leased and operated by a nonprofit
organization and primarily used to provide recreational
opportunities to disabled veterans and their families.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2004, section 394.25, is
amended by adding a subdivision to read:

new text begin Subd. 3d.new text end

new text begin Nonprofit recreational property for use by
disabled veterans.new text end

new text begin Property located in a county in the
metropolitan area with a population of less than 500,000, and
owned or leased and operated by a nonprofit organization, and
primarily used to provide recreational opportunities for
disabled veterans and their families is a legal conforming use
for purposes of zoning controls. Improvements to such property
shall be allowed under the terms of a planned unit development
permit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2004, section 462.357, is
amended by adding a subdivision to read:

new text begin Subd. 1g.new text end

new text begin Nonprofit recreational property for use by
disabled veterans.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2004, section 473.147, is
amended by adding a subdivision to read:

new text begin Subd. 1a.new text end

new text begin Disabled veterans rest camp excluded from
regional recreational open space system.new text end

new text begin Property occupied by
the Disabled Veterans Rest Camp on Big Marine Lake in Washington
County is excluded from the regional recreational open space
system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 7.

Laws 2000, chapter 461, article 4, section 4, as
amended by Laws 2003, First Special Session chapter 12, article
6, section 3, and Laws 2004, chapter 267, article 17, section 7,
is amended to read:

Sec. 4new text begin EFFECTIVE DATEnew text end deleted text begin ; SUNSET REPEALERdeleted text end new text begin .
new text end

deleted text begin (a) deleted text end Sections 1, 2, and 3 are effective deleted text begin on deleted text end the day following
final enactment.

deleted text begin (b) Sections 1, 2, and 3, are repealed on May 16, 2006.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 8. new text begin RESTRICTIONS LIMITED.
new text end

new text begin No county may take any action to encumber or restrict
ingress or egress below levels permissible on January 1, 2005,
to property located in a county in the metropolitan area with a
population of less than 500,000, and owned or leased and
operated by a nonprofit organization, and primarily used to
provide recreational opportunities to disabled veterans and
their families.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 9. new text begin DISABLED VETERANS CAMP REQUIREMENTS.
new text end

new text begin The Disabled Veterans Rest Camp on Big Marine Lake in
Washington County ("The Camp") must develop and promote camp
features and amenities for veterans who are disabled or have
limited physical capabilities. The camp shall modify its
operating policies and procedures to include provisions for the
regular rotation of the use of campsites, cabins, and parking
spots for travel trailers, limiting the time that any one
veteran can use the cabin and campsites especially when there is
a waiting list of veterans with service-connected disabilities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 10. new text begin PLAQUE HONORING VETERANS OF THE PERSIAN GULF
WAR.
new text end

new text begin A memorial plaque may be placed in the court of honor on
the capitol grounds to recognize the valiant service to our
nation by the thousands of brave men and women who served
honorably as members of the United States Armed Forces during
the Persian Gulf War. The plaque must be furnished by a person
or organization other than the Department of Veterans Affairs
and must be approved by the commissioner of veterans affairs and
the Capitol Area Architectural and Planning Board.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 43A.11, subdivision 2;
and 197.455, subdivision 3, are repealed.
new text end

ARTICLE 8

ELECTRONIC REAL ESTATE RECORDING

Section 1.

Minnesota Statutes 2004, section 507.093, is
amended to read:

507.093 STANDARDS FOR DOCUMENTS TO BE RECORDED OR FILED.

(a) The following standards are imposed on documents to be
recorded with the county recorder or filed with the registrar of
titles:

(1) The document shall consist of one or more individual
sheets measuring no larger than 8.5 inches by 14 inches.

(2) The form of the document shall be printed, typewritten,
or computer generated in black ink and the form of the document
shall not be smaller than 8-point type.

(3) The document shall be on white paper of not less than
20-pound weight with no background color, images, or writing and
shall have a clear border of approximately one-half inch on the
top, bottom, and each side.

(4) The first page of the document shall contain a blank
space at the top measuring three inches, as measured from the
top of the page. The right half to be used by the county
recorder for recording information or registrar of titles for
filing information and the left half to be used by the county
auditor or treasurer for certification.

(5) The title of the document shall be prominently
displayed at the top of the first page below the blank space
referred to in clause (4).

(6) No additional sheet shall be attached or affixed to a
page that covers up any information or printed part of the form.

(7) A document presented for recording or filing must be
sufficiently legible to reproduce a readable copy using the
county recorder's or registrar of title's current method of
reproduction.

new text begin (b) new text end The standards in deleted text begin this deleted text end paragraph new text begin (a) new text end do not apply to a
document that is recorded or filed as part of a pilot project
for the electronic filing of real estate documents implemented
by the task force created in Laws 2000, chapter 391new text begin , or under
the Electronic Real Estate Recording Task Force created under
section 507.094. A county that participated in the pilot
project for the electronic filing of real estate documents under
the task force created in Laws 2000, chapter 391, may continue
to record or file documents electronically, if:
new text end

new text begin (1) the county complies with standards adopted by that task
force; and
new text end

new text begin (2) the county uses software that was validated by that
task force. A county that did not participate in the pilot
project may record or file a real estate document
electronically, if:
new text end

new text begin (i) the document to be recorded or filed is of a type
included in the pilot project for the electronic filing of real
estate documents under the task force created in Laws 2000,
chapter 391;
new text end

new text begin (ii) the county complies with the standards adopted by the
task force;
new text end

new text begin (iii) the county uses software that was validated by the
task force; and
new text end

new text begin (iv) the task force created under section 507.094 accepts
by a vote of the task force a written certification of
compliance by the county board and county recorder of the county
to implement electronic filing under this sectionnew text end .

deleted text begin (b) deleted text end new text begin (c) new text end The recording or filing fee for a document that
does not conform to the standards in paragraph (a) shall be
increased as provided in sections 357.18, subdivision 5; 508.82;
and 508A.82.

deleted text begin (c) deleted text end new text begin (d) new text end The recorder or registrar shall refund the
recording or filing fee to the applicant if the real estate
documents are not filed or registered within 30 days after
receipt, or as otherwise provided by section 386.30.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 2.

new text begin [507.094] ELECTRONIC REAL ESTATE RECORDING TASK
FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Creation; membership. new text end

new text begin (a) The Electronic
Real Estate Recording Task Force is created to study and make
recommendations for the establishment of a system for the
electronic filing and recording of real estate documents.
new text end

new text begin (b) The task force consists of 18 members. The secretary
of state shall serve as the chair of the task force. The
state's chief information officer, as designated under section
16E.02, or the officer's designee, shall serve as the vice-chair
of the task force. Members who are appointed under this section
shall serve for a term of three years beginning July 1, 2005.
The task force must include:
new text end

new text begin (1) four county government officials appointed by the
Association of County Officers, including two county recorders,
one county auditor, and one county treasurer;
new text end

new text begin (2) two county board members recommended by the Association
of Minnesota Counties and appointed by the chair, including one
board member from within the seven-county metropolitan area and
one board member from outside the seven-county metropolitan
area;
new text end

new text begin (3) seven members from the private sector recommended by
their industries and appointed by the chair, including
representatives of:
new text end

new text begin (i) real estate attorneys, real estate agents, and public
and private land surveyors;
new text end

new text begin (ii) mortgage companies, and other real estate lenders; and
new text end

new text begin (iii) technical and industry experts in electronic commerce
and electronic records management and preservation;
new text end

new text begin (4) a representative selected by the Minnesota Historical
Society; and
new text end

new text begin (5) two representatives of title companies.
new text end

new text begin (c) The task force may refer items to subcommittees. The
chair shall appoint the membership of a subcommittee. An
individual may be appointed to serve on a subcommittee without
serving on the task force.
new text end

new text begin Subd. 2. new text end

new text begin Study and recommendations. new text end

new text begin (a) The task force
shall complete the work of the task force created by Laws 2000,
chapter 391, to study and make recommendations regarding
implementation of a system for electronic filing and recording
of real estate documents and shall consider:
new text end

new text begin (1) technology and computer needs;
new text end

new text begin (2) legal issues such as authenticity, security, timing and
priority of recordings, and the relationship between electronic
and paper recorder systems;
new text end

new text begin (3) cost-effectiveness of electronic recording systems;
new text end

new text begin (4) a timetable and plan for implementing an electronic
recording system, considering types of documents and entities
using the system and volume of recordings;
new text end

new text begin (5) permissive versus mandatory systems; and
new text end

new text begin (6) other relevant issues identified by the task force.
new text end

new text begin The task force shall review the Uniform Electronic
Recording Act as drafted by the National Conference of
Commissioners on Uniform State Laws and recommend alternative
structures for the permanent Commission on Electronic Real
Estate Recording Standards.
new text end

new text begin (b) The task force may commence establishing standards for
the electronic recording of the remaining residential real
estate deed and mortgage documents and establish pilot projects
to complete the testing and functions of the task force
established in Laws 2000, chapter 391.
new text end

new text begin (c) The task force shall submit a report to the legislature
by January 15 of each year during its existence reporting on the
progress toward the goals provided in this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Donations; reimbursement. new text end

new text begin The task force may
accept donations of money or resources, including loaned
employees or other services. The donations are appropriated to
the task force and must be under the sole control of the task
force.
new text end

new text begin Subd. 4. new text end

new text begin Legislative coordinating commission;
duties. new text end

new text begin The task force may contract with the Legislative
Coordinating Commission for the provision of administrative
services to the task force, the preparation of requests for
proposal, or the disbursement of funds for the payment of
vendors, salaries, and other expenses of the task force.
new text end

new text begin Subd. 5.new text end

new text begin Expiration.new text end

new text begin The task force expires June 30,
2008.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 3.

Minnesota Statutes 2004, section 507.24,
subdivision 2, is amended to read:

Subd. 2.

Original signatures required.

new text begin (a) new text end Unless
otherwise provided by law, an instrument affecting real estate
that is to be recorded as provided in this section or other
applicable law must contain the original signatures of the
parties who execute it and of the notary public or other officer
taking an acknowledgment. However, a financing statement that
is recorded as a filing pursuant to section 336.9-502(b) need
not contain: (1) the signatures of the debtor or the secured
party; or (2) an acknowledgment.

new text begin (b) new text end Any electronic instruments, including signatures and
seals, affecting real estate may only be recorded as part of a
pilot project for the electronic filing of real estate documents
implemented by the task force created in Laws 2000, chapter
391deleted text begin .deleted text end new text begin , or by the Electronic Real Estate Recording Task Force
created under section 507.094. A county that participated in
the pilot project for the electronic filing of real estate
documents under the task force created in Laws 2000, chapter
391, may continue to record or file documents electronically, if:
new text end

new text begin (1) the county complies with standards adopted by the task
force; and
new text end

new text begin (2) the county uses software that was validated by the task
force.
new text end

new text begin A county that did not participate in the pilot project may
record or file a real estate document electronically, if:
new text end

new text begin (ii) the county complies with the standards adopted by the
task force;
new text end

new text begin (iii) the county uses software that was validated by the
task force; and
new text end

new text begin (c) new text end Notices filed pursuant to section 168A.141,
subdivisions 1 and 3, need not contain an acknowledgment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 4. new text begin APPROPRIATION.
new text end

new text begin $25,000 in fiscal year 2006 and $25,000 in fiscal year 2007
are appropriated from the general fund to the Legislative
Coordinating Commission for the task force under Minnesota
Statutes, section 507.094, subdivision 4. The base for this
program is $25,000 in fiscal year 2008 and zero in future fiscal
years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

ARTICLE 9

ELECTIONS AND CAMPAIGN FINANCE

Section 1.

Minnesota Statutes 2004, section 3.02, is
amended to read:

3.02 EVIDENCE OF MEMBERSHIP.

For all purposes of organization of either house of the
legislature, a certificate of election to it, duly executed by
the secretary of state, is prima facie evidence of the right to
membership of the person named in it. new text begin The secretary of state
shall issue the certificate of election in duplicate and shall
file and retain one copy for the official records of the state
and present one copy to each legislator.
new text end

Sec. 2.

Minnesota Statutes 2004, section 10A.01,
subdivision 5, is amended to read:

Subd. 5.

Associated business.

"Associated business"
means an associationnew text begin , corporation, partnership, limited
liability company, limited liability partnership, or other
organized legal entity new text end from which the individual receives
compensation in excess of $50, except for actual and reasonable
expenses, in any month as a director, officer, owner, member,
partner, employer or employee, or whose securities the
individual holds worth $2,500 or more at fair market value.

Sec. 3.

Minnesota Statutes 2004, section 10A.01,
subdivision 21, is amended to read:

Subd. 21.

Lobbyist.

(a) "Lobbyist" means an individual:

(1) engaged for pay or other consideration of more than
$3,000 from all sources in any year for the purpose of
attempting to influence legislative or administrative action, or
the official action of a metropolitan governmental unit, by
communicating or urging others to communicate with public or
local officials; or

(2) who spends more than $250, not including the
individual's own traveling expenses and membership dues, in any
year for the purpose of attempting to influence legislative or
administrative action, or the official action of a metropolitan
governmental unit, by communicating or urging others to
communicate with public or local officials.

(b) "Lobbyist" does not include:

(1) a public official;

(2) an employee of the state, including an employee of any
of the public higher education systems;

(3) an elected local official;

(4) a nonelected local official or an employee of a
political subdivision acting in an official capacity, unless the
nonelected official or employee of a political subdivision
spends more than deleted text begin 50 deleted text end new text begin ten new text end hours in any month attempting to
influence legislative or administrative action, or the official
action of a metropolitan governmental unit other than the
political subdivision employing the official or employee, by
communicating or urging others to communicate with public or
local officials, including time spent monitoring legislative or
administrative action, or the official action of a metropolitan
governmental unit, and related research, analysis, and
compilation and dissemination of information relating to
legislative or administrative policy in this state, or to the
policies of metropolitan governmental unitsnew text begin , but not including
travel time related to these actionsnew text end ;

(5) a party or the party's representative appearing in a
proceeding before a state board, commission, or agency of the
executive branch unless the board, commission, or agency is
taking administrative action;

(6) an individual while engaged in selling goods or
services to be paid for by public funds;

(7) a news medium or its employees or agents while engaged
in the publishing or broadcasting of news items, editorial
comments, or paid advertisements which directly or indirectly
urge official action;

(8) a paid expert witness whose testimony is requested by
the body before which the witness is appearing, but only to the
extent of preparing or delivering testimony; or

(9) a party or the party's representative appearing to
present a claim to the legislature and communicating to
legislators only by the filing of a claim form and supporting
documents and by appearing at public hearings on the claim.

(c) An individual who volunteers personal time to work
without pay or other consideration on a lobbying campaign, and
who does not spend more than the limit in paragraph (a), clause
(2), need not register as a lobbyist.

(d) An individual who provides administrative support to a
lobbyist and whose salary and administrative expenses
attributable to lobbying activities are reported as lobbying
expenses by the lobbyist, but who does not communicate or urge
others to communicate with public or local officials, need not
register as a lobbyist.

Sec. 4.

Minnesota Statutes 2004, section 10A.01,
subdivision 23, is amended to read:

Subd. 23.

Major political party.

"Major political party"
meansnew text begin :
new text end

new text begin (1) new text end a major political party as defined in section 200.02,
subdivision 7deleted text begin .deleted text end new text begin ; or
new text end

new text begin (2) a political party that maintains a party organization
in the state, political subdivision, or precinct in question and
that has presented at least 45 candidates for election to the
office of state representative, 23 candidates for election to
the office of state senator, four candidates for the office of
representative in Congress, and one candidate for each of the
following offices: governor and lieutenant governor, attorney
general, secretary of state, and state auditor at the last
preceding state general election for those offices. A political
party that presents the required candidates at a state general
election described in this clause becomes a major political
party as of January 1 following that election and retains its
major party status notwithstanding that the party fails to
present the required candidates at the following state general
election. A major political party that fails to present the
required candidates at the following state general election
loses major party status as of December 31 following the most
recent state general election.
new text end

Sec. 5.

Minnesota Statutes 2004, section 10A.01,
subdivision 26, is amended to read:

Subd. 26.

Noncampaign disbursement.

"Noncampaign
disbursement" means a purchase or payment of money or anything
of value made, or an advance of credit incurred, or a donation
in kind received, by a principal campaign committee for any of
the following purposes:

(1) payment for accounting and legal services;

(2) return of a contribution to the source;

(3) repayment of a loan made to the principal campaign
committee by that committee;

(4) return of a public subsidy;

(5) payment for food, beverages, entertainment, and
facility rental for a fund-raising event;

(6) services for a constituent by a member of the
legislature or a constitutional officer in the executive branch,
new text begin including the costs of preparing and distributing a suggestion
or idea solicitation to constituents,new text end performed from the
beginning of the term of office to adjournment sine die of the
legislature in the election year for the office held, and half
the cost of services for a constituent by a member of the
legislature or a constitutional officer in the executive branch
performed from adjournment sine die to 60 days after adjournment
sine die;

(7) payment for food and beverages provided to campaign
volunteers while they are engaged in campaign activities;

(8) payment of expenses incurred by elected or appointed
leaders of a legislative caucus in carrying out their leadership
responsibilities;

(9) payment by a principal campaign committee of the
candidate's expenses for serving in public office, other than
for personal uses;

(10) costs of child care for the candidate's children when
campaigning;

(11) fees paid to attend a campaign school;

(12) costs of a postelection party during the election year
when a candidate's name will no longer appear on a ballot or the
general election is concluded, whichever occurs first;

(13) interest on loans paid by a principal campaign
committee on outstanding loans;

(14) filing fees;

(15) post-general election thank-you notes or
advertisements in the news media;

(16) the cost of campaign material purchased to replace
defective campaign material, if the defective material is
destroyed without being used;

(17) contributions to a party unit; deleted text begin and
deleted text end

(18) other purchases or payments specified in board rules
or advisory opinions as being for any purpose other than to
influence the nomination or election of a candidate or to
promote or defeat a ballot questionnew text begin ; and
new text end

new text begin (19) payments for attending a state or national convention
and payments for funeral gifts or memorialsnew text end .

The board must determine whether an activity involves a
noncampaign disbursement within the meaning of this subdivision.

A noncampaign disbursement is considered to be made in the
year in which the candidate made the purchase of goods or
services or incurred an obligation to pay for goods or services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactive to
February 28, 1978.
new text end

Sec. 6.

Minnesota Statutes 2004, section 10A.025, is
amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Electronic filing. new text end

new text begin A report or statement
required to be filed under this chapter may be filed
electronically. The board shall adopt rules to regulate
electronic filing and to ensure that the electronic filing
process is secure.
new text end

Sec. 7.

Minnesota Statutes 2004, section 10A.071,
subdivision 3, is amended to read:

Subd. 3.

Exceptions.

(a) The prohibitions in this
section do not apply if the gift is:

(1) a contribution as defined in section 10A.01,
subdivision 11;

(2) services to assist an official in the performance of
official duties, including but not limited to providing advice,
consultation, information, and communication in connection with
legislation, and services to constituents;

(3) services of insignificant monetary value;

(4) a plaque or similar memento recognizing individual
services in a field of specialty or to a charitable cause;

(5) a trinket or memento of insignificant value;

(6) informational material of unexceptional value; deleted text begin or
deleted text end

(7) food or a beverage given at a reception, meal, or
meeting away from the recipient's place of work by an
organization before whom the recipient appears to make a speech
or answer questions as part of a programnew text begin ; or
new text end

new text begin (8) food or a beverage of a nominal value given at a
reception to which all relevant members of the legislature have
been invitednew text end .

(b) The prohibitions in this section do not apply if the
gift is given:

(1) because of the recipient's membership in a group, a
majority of whose members are not officials, and an equivalent
gift is given to the other members of the group; or

(2) by a lobbyist or principal who is a member of the
family of the recipient, unless the gift is given on behalf of
someone who is not a member of that family.

Sec. 8.

Minnesota Statutes 2004, section 10A.08, is
amended to read:

10A.08 REPRESENTATION DISCLOSURE.

A public official who represents a client for a fee before
an individual, board, commission, or agency that has rulemaking
authority in a hearing conducted under chapter 14, must disclose
the official's participation in the action to the board within
14 days after the appearance. The board must send a notice by
certified mail to any public official who fails to disclose the
participation within 14 days after the appearance. If the
public official fails to disclose the participation within ten
business days after the notice was sent, the board may impose a
late filing fee of $5 per day, not to exceed $100, starting on
the 11th day after the notice was sent. new text begin The board must send an
additional notice by certified mail to a public official who
fails to disclose the participation within 14 days after the
first notice was sent by the board that the public official may
be subject to a civil penalty for failure to disclose the
participation. A public official who fails to disclose the
participation within seven days after the second notice was sent
by the board is subject to a civil penalty imposed by the board
of up to $1,000.
new text end

Sec. 9.

new text begin [10A.175] EXPENDITURES FOR HOUSING.
new text end

new text begin A legislator may use funds from the legislator's principal
campaign committee to pay for housing expenses incurred due to
attending a session of the legislature. These expenditures are
noncampaign disbursements.
new text end

Sec. 10.

Minnesota Statutes 2004, section 10A.20,
subdivision 2, is amended to read:

Subd. 2.

Time for filing.

(a) The reports must be filed
with the board on or before January 31 of each year and
additional reports must be filed as required and in accordance
with paragraphs (b) and (c).

(b) In each year in which the name of the candidate is on
the ballot, the report of the principal campaign committee must
be filed 15 days before a primary and ten days before a general
election, seven days before a special primary and a special
election, and ten days after a special election cyclenew text begin , except as
otherwise provided by subdivision 3bnew text end .

(c) In each general election year, a political committee,
political fund, or party unit must file reports 15 days before a
primary and ten days before a general election.

Sec. 11.

Minnesota Statutes 2004, section 10A.20, is
amended by adding a subdivision to read:

new text begin Subd. 3b. new text end

new text begin Report by candidate without primary
opposition. new text end

new text begin Notwithstanding the provisions of subdivision 3, if
a candidate does not have an opponent at a primary or special
primary, the candidate's principal campaign committee must file,
15 days before a primary and seven days before a special
primary, a report containing only the following:
new text end

new text begin (1) the amount of liquid assets on hand at the beginning of
the reporting period;
new text end

new text begin (2) the sum of contributions to the principal campaign
committee during the reporting period;
new text end

new text begin (3) the sum of all expenditures made by or on behalf of the
principal campaign committee during the reporting period; and
new text end

new text begin (4) the information required by subdivision 3, paragraph
(b).
new text end

Sec. 12.

Minnesota Statutes 2004, section 10A.20,
subdivision 5, is amended to read:

Subd. 5.

Preelection reports.

In a statewide election
any loan, contribution, or contributions from any one source
totaling $2,000 or more, or in any judicial district or
legislative election totaling more than $400, received between
the last day covered in the last report before an election and
the election must be reported to the board in one of the
following ways:

(1) in person within 48 hours after its receipt;

(2) by telegram or mailgram within 48 hours after its
receipt; deleted text begin or
deleted text end

(3) by certified mail sent within 48 hours after its
receiptnew text begin ; or
new text end

new text begin (4) by electronic means sent within 48 hours after its
receiptnew text end .

These loans and contributions must also be reported in the
next required report.

The 48-hour notice requirement does not apply with respect
to a primary in which the statewide or legislative candidate is
unopposed.

Sec. 13.

Minnesota Statutes 2004, section 10A.27,
subdivision 1, is amended to read:

Subdivision 1.

Contribution limits.

(a) Except as
provided in subdivision 2, a candidate must not permit the
candidate's principal campaign committee to accept aggregate
contributions made or delivered by any individual, political
committee, or political fund in excess of the following:

(1) to candidates for governor and lieutenant governor
running together, $2,000 in an election year for the office
sought and $500 in other years;

(2) to a candidate for attorney general, $1,000 in an
election year for the office sought and $200 in other years;

(3) to a candidate for the office of secretary of state or
state auditor, $500 in an election year for the office sought
and $100 in other years;

(4) to a candidate for state senator, $500 in an election
year for the office sought and $100 in other years; and

(5) to a candidate for state representative, $500 in an
election year for the office sought and $100 in the other year.

(b) The following deliveries are not subject to the
bundling limitation in this subdivision:

(1) delivery of contributions collected by a member of the
candidate's principal campaign committee, such as a block worker
or a volunteer who hosts a fund-raising event, to the
committee's treasurer; and

(2) a delivery made by an individual on behalf of the
individual's spouse.

(c) A new text begin lobbyist,new text end political committeenew text begin , political party unit,
new text end or political fund must not make a contribution a candidate is
prohibited from accepting.

Sec. 14.

Minnesota Statutes 2004, section 10A.28,
subdivision 2, is amended to read:

Subd. 2.

Exceeding contribution limits.

deleted text begin A political
committee, political fund, or principal campaign committee that
makes a contribution, or a candidate who permits the candidate's
principal campaign committee to accept contributions, in excess
of the limits imposed by section 10A.27 is subject to a civil
penalty of up to four times the amount by which the contribution
exceeded the limits. deleted text end new text begin The following are subject to a civil
penalty of up to four times the amount by which a contribution
exceeds the applicable limits:
new text end

new text begin (1) a lobbyist, political committee, or political fund that
makes a contribution in excess of the limits imposed by section
10A.27, subdivisions 1 and 8;
new text end

new text begin (2) a principal campaign committee that makes a
contribution in excess of the limits imposed by section 10A.27,
subdivision 2;
new text end

new text begin (3) a political party unit that makes a contribution in
excess of the limits imposed by section 10A.27, subdivisions 2
and 8; or
new text end

new text begin (4) a candidate who permits the candidate's principal
campaign committee to accept contributions in excess of the
limits imposed by section 10A.27.
new text end

Sec. 15.

Minnesota Statutes 2004, section 10A.31,
subdivision 1, is amended to read:

Subdivision 1.

Designation.

An individual resident of
this state who files an income tax return or a renter and
homeowner property tax refund return with the commissioner of
revenue may designate on their original return that deleted text begin $5 be paid
from the general fund of the state deleted text end new text begin $1 to $25, or $1 to $50 if
the return is filed jointly, be added to the tax or deducted
from the refund that would otherwise be payable by or to the
individual and paid new text end into the state elections campaign fund. deleted text begin If
a husband and wife file a joint return, each spouse may
designate that $5 be paid. No individual is allowed to
designate $5 more than once in any year.deleted text end The taxpayer may
designate that the amount be paid into the account of a
political party or into the general account. new text begin Designations made
under this section are not eligible for refund under section
290.06, subdivision 23.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with
designations made on income tax returns filed for tax years
beginning after December 31, 2004, and property tax refund
returns based on property taxes payable in 2006 or rent
constituting property taxes paid in 2005.
new text end

Sec. 16.

Minnesota Statutes 2004, section 10A.31,
subdivision 3, is amended to read:

Subd. 3.

Form.

The commissioner of revenue must provide
on deleted text begin the first page of deleted text end the income tax form and the renter and
homeowner property tax refund return a space for the individual
to indicate a wish to pay deleted text begin $5 ($10 deleted text end new text begin $1 to $25, or $1 to $50 new text end if
filing a joint return deleted text begin ) from the general fund of the state deleted text end new text begin ,new text end to
finance election campaigns. The form must also contain language
prepared by the commissioner that permits the individual to
direct the deleted text begin state to pay the $5 (or $10 if filing a joint return)
deleted text end new text begin designation new text end to: (1) one of the major political parties; (2) any
minor political party that qualifies under subdivision 3a; or
(3) all qualifying candidates as provided by subdivision 7. deleted text begin The
renter and homeowner property tax refund return must include
instructions that the individual filing the return may designate
$5 on the return only if the individual has not designated $5 on
the income tax return.
deleted text end

new text begin EFFECTIVE DATE. new text end

Sec. 17.

Minnesota Statutes 2004, section 10A.31,
subdivision 4, is amended to read:

Subd. 4.

Appropriation.

deleted text begin (a) deleted text end The amounts designated by
individuals for the state elections campaign fund, less three
percent, deleted text begin are appropriated from the general fund,deleted text end must be
transferred and credited to the appropriate account in the state
elections campaign fund, and are annually appropriated for
distribution as set forth in subdivisions 5, 5a, 6, and 7. The
remaining three percent must be kept in the deleted text begin general deleted text end new text begin state
elections campaign new text end fund for administrative costs.

deleted text begin (b) In addition to the amounts in paragraph (a), $1,500,000
for each general election is appropriated from the general fund
for transfer to the general account of the state elections
campaign fund.
deleted text end

Of this appropriation, $65,000 each fiscal year must be set
aside to pay assessments made by the Office of Administrative
Hearings under section 211B.37. Amounts remaining after all
assessments have been paid must be canceled to the general
account.

new text begin EFFECTIVE DATE. new text end

new text begin The changes to paragraph (a) are
effective beginning with designations made on income tax returns
filed for tax years beginning after December 31, 2004, and
property tax refund returns based on property taxes payable in
2006 or rent constituting property taxes paid in 2005. The
changes to paragraph (b) are effective for appropriations for
general elections occurring after December 31, 2004.
new text end

Sec. 18.

Minnesota Statutes 2004, section 10A.31,
subdivision 5, is amended to read:

Subd. 5.

Allocation.

(a) [GENERAL ACCOUNT.] In each
calendar year the money in the general account must be allocated
to candidates as follows:

(1) 21 percent for the offices of governor and lieutenant
governor together;

(2) 4.2 percent for the office of attorney general;

(3) 2.4 percent each for the offices of secretary of state
and state auditor;

(4) in each calendar year during the period in which state
senators serve a four-year term, 23-1/3 percent for the office
of state senator, and 46-2/3 percent for the office of state
representative; and

(5) in each calendar year during the period in which state
senators serve a two-year term, 35 percent each for the offices
of state senator and state representative.

(b) [PARTY ACCOUNT.] In each calendar year the money in
each party account must be allocated as follows:

(1) 14 percent for the offices of governor and lieutenant
governor together;

(2) 2.8 percent for the office of attorney general;

(3) 1.6 percent each for the offices of secretary of state
and state auditor;

(4) in each calendar year during the period in which state
senators serve a four-year term, deleted text begin 23-1/3 deleted text end new text begin 28-1/3 new text end percent for the
office of state senator, and deleted text begin 46-2/3 deleted text end new text begin 51-2/3 new text end percent for the
office of state representative; new text begin and
new text end

(5) in each calendar year during the period in which state
senators serve a two-year term, deleted text begin 35 deleted text end new text begin 40 new text end percent each for the
offices of state senator and state representativedeleted text begin ; and
deleted text end

deleted text begin (6) ten percent for the state committee of a political
partydeleted text end .

deleted text begin Money allocated to each state committee under clause (6)
must be deposited in a separate account and must be spent for
only those items enumerated in section 10A.275. Money allocated
to a state committee under clause (6) must be paid to the
committee by the board as it is received in the account on a
monthly basis, with payment on the 15th day of the calendar
month following the month in which the returns were processed by
the Department of Revenue, provided that these distributions
would be equal to 90 percent of the amount of money indicated in
the Department of Revenue's weekly unedited reports of income
tax returns and property tax refund returns processed in the
month, as notified by the Department of Revenue to the board.
The amounts paid to each state committee are subject to biennial
adjustment and settlement at the time of each certification
required of the commissioner of revenue under subdivisions 7 and
10. If the total amount of payments received by a state
committee for the period reflected on a certification by the
Department of Revenue is different from the amount that should
have been received during the period according to the
certification, each subsequent monthly payment must be increased
or decreased to the fullest extent possible until the amount of
the overpayment is recovered or the underpayment is distributed.
deleted text end

Sec. 19.

Minnesota Statutes 2004, section 10A.31,
subdivision 6a, is amended to read:

Subd. 6a.

Party account money not distributed.

Money
from a party account not distributed to candidates for state
senator or representative in any election year must be returned
to the general fund of the state, except that the subsidy from
the party account an unopposed candidate would otherwise have
been eligible to receive must be paid to the state committee of
the candidate's political party to be deposited in a special
account deleted text begin under subdivision 5, paragraph (b), clause (6),deleted text end and used
for only those items permitted under section 10A.275. Money
from a party account not distributed to candidates for other
offices in an election year must be returned to the party
account for reallocation to candidates as provided in
subdivision 5, paragraph (b), in the following year.

Sec. 20.

new text begin [10A.375] EXPENDITURES FOR FOOD.
new text end

new text begin A legislative candidate may use funds from the candidate's
principal campaign committee to pay for food consumed by the
candidate while campaigning. These expenditures are noncampaign
disbursements.
new text end

Sec. 21.

Minnesota Statutes 2004, section 200.02,
subdivision 7, is amended to read:

Subd. 7.

Major political party.

(a) "Major political
party" means a political party that maintains a party
organization in the state, political division or precinct in
question and that has presented at least one candidate for
election to the office of:

(1) governor and lieutenant governor, secretary of state,
state auditor, or attorney general at the last preceding state
general election for those offices; or

(2) presidential elector or U.S. senator at the last
preceding state general election for presidential electors; and

whose candidate received votes in each county in that
election and received votes from not less than five percent of
the total number of individuals who voted in that election.

(b) "Major political party" also means a political party
that maintains a party organization in the state, political
subdivision, or precinct in question and whose members present
to the secretary of state new text begin at any time before the close of filing
for the state partisan primary ballot new text end a petition for a place on
the state partisan primary ballot, which petition contains
signatures of a number of the party members equal to at least
five percent of the total number of individuals who voted in the
preceding state general election.

(c) A political party whose candidate receives a sufficient
number of votes at a state general election described in
paragraph (a) becomes a major political party as of January 1
following that election and retains its major party status
deleted text begin notwithstanding that deleted text end new text begin for at least two state general elections
even if new text end the party fails to present a candidate who receives the
number and percentage of votes required under paragraph (a)
at deleted text begin the following deleted text end new text begin subsequent new text end state general deleted text begin election deleted text end new text begin electionsnew text end .

(d) A major political party whose candidates fail to
receive the number and percentage of votes required under
paragraph (a) at deleted text begin either deleted text end new text begin each of two consecutive new text end state general
deleted text begin election deleted text end new text begin elections new text end described by paragraph (a) loses major party
status as of December 31 following the deleted text begin most recent deleted text end new text begin later of the
two consecutive new text end state general deleted text begin election deleted text end new text begin electionsnew text end .

Sec. 22.

Minnesota Statutes 2004, section 200.02,
subdivision 23, is amended to read:

Subd. 23.

Minor political party.

(a) "Minor political
party" means a political party that is not a major political
party as defined by subdivision 7 and that has adopted a state
constitution, designated a state party chair, held a state
convention in the last two years, filed with the secretary of
state no later than December 31 following the most recent state
general election a certification that the party has met the
foregoing requirements, and met the requirements of paragraph
(b) or (e), as applicable.

(b) To be considered a minor party in all elections
statewide, the political party must have presented at least one
candidate for election to the office of:

(1) governor and lieutenant governor, secretary of state,
state auditor, or attorney general, at the last preceding state
general election for those offices; or

(2) presidential elector or U.S. senator at the preceding
state general election for presidential electors; and

who received votes in each county that in the aggregate equal at
least one percent of the total number of individuals who voted
in the election, or its members must have presented to the
secretary of state new text begin at any time before the close of filing for
the state partisan primary ballot new text end a nominating petition in a
form prescribed by the secretary of state containing the
signatures of party members in a number equal to at least one
percent of the total number of individuals who voted in the
preceding state general election.

(c) A political party whose candidate receives a sufficient
number of votes at a state general election described in
paragraph (b) becomes a minor political party as of January 1
following that election and retains its minor party status
deleted text begin notwithstanding that deleted text end new text begin for at least two state general elections
even if new text end the party fails to present a candidate who receives the
number and percentage of votes required under paragraph (b)
at deleted text begin the following deleted text end new text begin subsequent new text end state general deleted text begin election deleted text end new text begin electionsnew text end .

(d) A minor political party whose candidates fail to
receive the number and percentage of votes required under
paragraph (b) at deleted text begin either deleted text end new text begin each of two consecutive new text end state general
deleted text begin election deleted text end new text begin elections new text end described by paragraph (b) loses minor party
status as of December 31 following the deleted text begin most recent deleted text end new text begin later of the
two consecutive new text end state general deleted text begin election deleted text end new text begin electionsnew text end .

(e) To be considered a minor party in an election in a
legislative district, the political party must have presented at
least one candidate for a legislative office in that district
who received votes from at least ten percent of the total number
of individuals who voted for that office, or its members must
have presented to the secretary of state a nominating petition
in a form prescribed by the secretary of state containing the
signatures of party members in a number equal to at least ten
percent of the total number of individuals who voted in the
preceding state general election for that legislative office.

Sec. 23.

Minnesota Statutes 2004, section 200.02, is
amended by adding a subdivision to read:

new text begin Subd. 24. new text end

new text begin Metropolitan area. new text end

new text begin "Metropolitan area" means
the counties of Ramsey, Hennepin, Anoka, Washington, Dakota,
Scott, Carver, Wright, Sherburne, Isanti, and Chisago.
new text end

Sec. 24.

Minnesota Statutes 2004, section 201.022, is
amended by adding a subdivision to read:

new text begin Subd. 3.new text end

new text begin Consultation with local
officials.new text end

new text begin Representatives of local election officials shall be
consulted in the development of the statewide voter registration
system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 25.

Minnesota Statutes 2004, section 201.061,
subdivision 3, is amended to read:

Subd. 3.

Election day registration.

An individual who is
eligible to vote may register on election day by appearing in
person at the polling place for the precinct in which the
individual maintains residence, by completing a registration
application, making an oath in the form prescribed by the
secretary of state and providing proof of residence. An
individual may prove residence for purposes of registering by:

(1) presenting a driver's license or Minnesota
identification card issued pursuant to section 171.07;

(2) presenting any document approved by the secretary of
state as proper identification;

(3) presenting one of the following:

(i) a current valid student identification card from a
postsecondary educational institution in Minnesota, if a list of
students from that institution has been prepared under section
135A.17 and certified to the county auditor in the manner
provided in rules of the secretary of state; or

(ii) a current student fee statement that contains the
student's valid address in the precinct together with a picture
identification card; or

(4) having a voter who is registered to vote in the
precinct sign an oath in the presence of the election judge
vouching that the voter personally knows that the individual is
a resident of the precinct. A voter who has been vouched for on
election day may not sign a proof of residence oath vouching for
any other individual on that election day. new text begin A voter who is
registered to vote in the precinct may sign up to 15
proof-of-residence oaths on any election day. The oath required
by this subdivision and Minnesota Rules, part 8200.9939, must be
attached to the voter registration application and the
information on the oath must be recorded on the records of both
the voter registering on election day and the voter who is
vouching for the person's residence, and entered into the
statewide voter registration system by the county auditor when
the voter registration application is entered into that system.
new text end

For tribal band members deleted text begin living on an Indian reservationdeleted text end , an
individual may prove residence for purposes of registering by
presenting an identification card issued by the tribal
government of a tribe recognized by the Bureau of Indian
Affairs, United States Department of the Interior, that contains
the name, deleted text begin street deleted text end address, signature, and picture of the
individual. deleted text begin The county auditor of each county having territory
within the reservation shall maintain a record of the number of
election day registrations accepted under this section.
deleted text end

A county, school district, or municipality may require that
an election judge responsible for election day registration
initial each completed registration application.

Sec. 26.

Minnesota Statutes 2004, section 201.071,
subdivision 1, is amended to read:

Subdivision 1.

Form.

A voter registration application
must be of suitable size and weight for mailing and contain
spaces for the following required information: voter's first
name, middle name, and last name; voter's previous name, if any;
voter's current address; voter's previous address, if any;
voter's date of birth; voter's municipality and county of
residence; voter's telephone number, if provided by the voter;
date of registration; current and valid Minnesota driver's
license number or Minnesota state identification number, or if
the voter has no current and valid Minnesota driver's license or
Minnesota state identification, the last four digits of the
voter's Social Security number; and voter's signature. The
registration application may include the voter's e-mail address,
if provided by the voter, and the voter's interest in serving as
an election judge, if indicated by the voter. The application
must also contain the following certification of voter
eligibility:

"I certify that I:

(1) will be at least 18 years old on election day;

(2) am a citizen of the United States;

(3) will have resided in Minnesota for 20 days immediately
preceding election day;

(4) maintain residence at the address given on the
registration form;

(5) am not under court-ordered guardianship of the person
where I have not retained the right to vote;

(6) have not been found by a court to be legally
incompetent to vote;

(7) have not been convicted of a felony without having my
civil rights restored; and

(8) have read and understand the following statement: that
giving false information is a felony punishable by not more than
five years imprisonment or a fine of not more than $10,000, or
both."

The certification must include boxes for the voter to
respond to the following questions:

"(1) Are you a citizen of the United States?" and

"(2) Will you be 18 years old on or before election day?"

And the instruction:

"If you checked 'no' to either of these questions, do not
complete this form."

The form of the voter registration application and the
certification of voter eligibility must be as provided in this
subdivision and approved by the secretary of state. Voter
registration forms authorized by the National Voter Registration
Act deleted text begin may deleted text end new text begin must new text end also be accepted as valid. new text begin The federal postcard
application form must also be accepted as valid if it is not
deficient and the voter is eligible to register in Minnesota.
new text end

An individual may use a voter registration application to
apply to register to vote in Minnesota or to change information
on an existing registration.

Sec. 27.

Minnesota Statutes 2004, section 201.091,
subdivision 5, is amended to read:

Subd. 5.

Copy of list to registered voter.

The county
auditors and the secretary of state shall provide copies of the
public information lists in electronic or other media to any
voter registered in Minnesota within ten days of receiving a
written new text begin or electronic new text end request accompanied by payment of the cost
of reproduction. The county auditors and the secretary of state
shall make a copy of the list available for public inspection
without cost. An individual who inspects or acquires a copy of
a public information list may not use any information contained
in it for purposes unrelated to elections, political activities,
or law enforcement.

Sec. 28.

Minnesota Statutes 2004, section 203B.01,
subdivision 3, is amended to read:

Subd. 3.

Military.

"Military" means the Army, Navy, Air
Force, Marine Corps, Coast Guard or Merchant Marine of the
United Statesnew text begin , and all other uniformed services as defined in
United States Code, title 42, section 1973ff-6new text end .

Sec. 29.

Minnesota Statutes 2004, section 203B.02,
subdivision 1, is amended to read:

Subdivision 1.

deleted text begin unable to go to deleted text end new text begin absence from new text end polling
place.

new text begin (a) new text end Any eligible voter who deleted text begin reasonably deleted text end expects to be
deleted text begin unable to go to deleted text end new text begin absent from new text end the polling place on election day in
the precinct where the individual maintains residence deleted text begin because of
absence from the precinct, illness, disability, religious
discipline, observance of a religious holiday, or service as an
election judge in another precinct deleted text end may vote deleted text begin by absentee ballot
deleted text end new text begin in person at any location where absentee ballots may be cast
pursuant to sections 203B.081 and 203B.085, during the 18 days
preceding any election. This subdivision does not apply to a
special election to fill a vacancy in office pursuant to
sections 204D.17 to 204D.27 not held concurrently with a state
primary or general election new text end as provided in sections 203B.04 to
203B.15.

new text begin (b) Any eligible voter who reasonably expects to be unable
to go to the polling place on election day in the precinct where
the individual maintains residence because of absence from the
precinct, illness, disability, religious discipline, observance
of a religious holiday, or service as an election judge in
another precinct may vote by absentee ballot as provided in
sections 203B.04 to 203B.15.
new text end

Sec. 30.

Minnesota Statutes 2004, section 203B.04,
subdivision 1, is amended to read:

Subdivision 1.

Application procedures.

Except as
otherwise allowed by subdivision 2, an application for absentee
ballots for any election may be submitted at any time not less
than one day before the day of that election. The county
auditor shall prepare absentee ballot application forms in the
format provided deleted text begin in the rules of deleted text end new text begin by new text end the secretary of statenew text begin ,
notwithstanding rules on absentee ballot forms,new text end and shall
furnish them to any person on request. new text begin By January 1 of each
even-numbered year, the secretary of state shall make the forms
to be used available to auditors through electronic means.new text end An
application submitted pursuant to this subdivision shall be in
writing and shall be submitted to:

(a) the county auditor of the county where the applicant
maintains residence; or

(b) the municipal clerk of the municipality, or school
district if applicable, where the applicant maintains residence.

An application shall be approved if it is timely received,
signed and dated by the applicant, contains the applicant's name
and residence and mailing addresses, and states that the
applicant is eligible to vote by absentee ballot for one of the
reasons specified in section 203B.02. The application may
contain a request for the voter's date of birth, which must not
be made available for public inspection. An application may be
submitted to the county auditor or municipal clerk by an
electronic facsimile device. An application mailed or returned
in person to the county auditor or municipal clerk on behalf of
a voter by a person other than the voter must be deposited in
the mail or returned in person to the county auditor or
municipal clerk within ten days after it has been dated by the
voter and no later than six days before the election. The
absentee ballot applications or a list of persons applying for
an absentee ballot may not be made available for public
inspection until the close of voting on election day.

An application under this subdivision may contain an
application under subdivision 5 to automatically receive an
absentee ballot application.

Sec. 31.

Minnesota Statutes 2004, section 203B.04,
subdivision 4, is amended to read:

Subd. 4.

Registration at time of application.

An
eligible voter who is not registered to vote but who is
otherwise eligible to vote by absentee ballot may register by
including a completed voter registration card with the absentee
ballot. The individual shall present proof of residence as
required by section 201.061, subdivision 3, to the individual
who witnesses the marking of the absentee ballots. new text begin A military
voter, as defined in section 203B.01, may register in this
manner if voting pursuant to sections 203B.04 to 203B.15, or may
register pursuant to sections 203B.16 to 203B.27.
new text end

Sec. 32.

Minnesota Statutes 2004, section 203B.04, is
amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Ongoing absentee status; termination. new text end

new text begin (a) An
eligible voter may apply to a county auditor or municipal clerk
for status as an ongoing absentee voter who reasonably expects
to meet the requirements of section 203B.02, subdivision 1.
Each applicant must automatically be provided with an absentee
ballot application for each ensuing election other than an
election by mail conducted under section 204B.45, and must have
the status of ongoing absentee voter indicated on the voter's
registration record.
new text end

new text begin (b) Ongoing absentee voter status ends on:
new text end

new text begin (1) the voter's written request;
new text end

new text begin (2) the voter's death;
new text end

new text begin (3) return of an ongoing absentee ballot as undeliverable;
new text end

new text begin (4) a change in the voter's status so that the voter is not
eligible to vote under section 201.15 or 201.155; or
new text end

new text begin (5) placement of the voter's registration on inactive
status under section 201.171.
new text end

Sec. 33.

Minnesota Statutes 2004, section 203B.07,
subdivision 2, is amended to read:

Subd. 2.

Design of envelopes.

The return envelope shall
be of sufficient size to conveniently enclose and contain the
ballot envelope and a voter registration card folded along its
perforations. The return envelope shall be designed to open on
the leftnew text begin -new text end hand end new text begin and, notwithstanding any rule to the contrary,
the design must provide an additional flap that when sealed,
conceals the signature, identification, and other information.
Election officials may open the flap at any time after receiving
the returned ballot to inspect the returned certificate for
completeness or to ascertain other informationnew text end . A certificate
of eligibility to vote by absentee ballot shall be printed on
the deleted text begin right hand three-fourths of the deleted text end back of the envelope. The
certificate shall contain a statement to be signed and sworn by
the voter indicating that the voter meets all of the
requirements established by law for voting by absentee ballot.
The certificate shall also contain a statement signed by a
person who is registered to vote in Minnesota or by a notary
public or other individual authorized to administer oaths
stating that:

(a) the ballots were displayed to that individual unmarked;

(b) the voter marked the ballots in that individual's
presence without showing how they were marked, or, if the voter
was physically unable to mark them, that the voter directed
another individual to mark them; and

(c) if the voter was not previously registered, the voter
has provided proof of residence as required by section 201.061,
subdivision 3.

The county auditor or municipal clerk shall affix first
class postage to the return envelopes.

Sec. 34.

Minnesota Statutes 2004, section 203B.11,
subdivision 1, is amended to read:

Subdivision 1.

Generally.

Each full-time municipal clerk
new text begin or school district clerk new text end who has authority under section 203B.05
to administer absentee voting laws shall designate election
judges to deliver absentee ballots in accordance with this
section. The county auditor deleted text begin may deleted text end new text begin must new text end also designate election
judges to perform the duties in this section. A ballot may be
delivered only to an eligible voter who is a temporary or
permanent resident or patient in a health care facility or
hospital located in the municipality in which the voter
maintains residence. The ballots shall be delivered by two
election judges, each of whom is affiliated with a different
major political party. When the election judges deliver or
return ballots as provided in this section, they shall travel
together in the same vehicle. Both election judges shall be
present when an applicant completes the certificate of
eligibility and marks the absentee ballots, and may assist an
applicant as provided in section 204C.15. The election judges
shall deposit the return envelopes containing the marked
absentee ballots in a sealed container and return them to the
clerk on the same day that they are delivered and marked.

Sec. 35.

Minnesota Statutes 2004, section 203B.12,
subdivision 2, is amended to read:

Subd. 2.

Examination of return envelopes.

Two or more
election judges shall examine each return envelope and shall
mark it accepted or rejected in the manner provided in this
subdivision. If a ballot has been prepared under section
204B.12, subdivision 2a, or 204B.41, the election judges shall
not begin removing ballot envelopes from the return envelopes
until 8:00 p.m. on election day, either in the polling place or
at an absentee ballot board established under section 203B.13.

The election judges shall mark the return envelope
"Accepted" and initial or sign the return envelope below the
word "Accepted" if the election judges or a majority of them are
satisfied that:

(1) the voter's name and address on the return envelope are
the same as the information provided on the absentee ballot
application;

(2) the voter's signature on the return envelope is the
genuine signature of the individual who made the application for
ballots and the certificate has been completed as prescribed in
the directions for casting an absentee ballotnew text begin , except that if a
person other than the voter applied for the absentee ballot
under applicable Minnesota Rules, the signature is not required
to matchnew text end ;

(3) the voter is registered and eligible to vote in the
precinct or has included a properly completed voter registration
application in the return envelope; and

(4) the voter has not already voted at that election,
either in person or by absentee ballot.

new text begin There is no other reason for rejecting an absentee ballot.
In particular, failure to place the envelope within the security
envelope before placing it in the outer white envelope is not a
reason to reject an absentee ballot.
new text end

The return envelope from accepted ballots must be preserved
and returned to the county auditor.

If all or a majority of the election judges examining
return envelopes find that an absent voter has failed to meet
one of the requirements prescribed in clauses (1) to (4), they
shall mark the return envelope "Rejected," initial or sign it
below the word "Rejected," and return it to the county auditor.

Sec. 36.

Minnesota Statutes 2004, section 203B.20, is
amended to read:

203B.20 CHALLENGES.

Except as provided in this section, the eligibility or
residence of a voter whose application for absentee ballots is
recorded under section 203B.19 may be challenged in the manner
set forth by section 201.195. The county auditor or municipal
clerk shall not be required to serve a copy of the petition and
notice of hearing on the challenged voternew text begin , unless the absentee
ballot application was submitted on behalf of a voter by an
individual authorized under section 203B.17, subdivision 1,
paragraph (a), in which case the county auditor must attempt to
notify the individual who submitted the application of the
challenge. The county auditor may contact other registered
voters to request information that may resolve any discrepancies
appearing in the applicationnew text end . All reasonable doubt shall be
resolved in favor of the validity of the application. If the
voter's challenge is affirmed, the county auditor shall provide
the challenged voter with a copy of the petition and the
decision and shall inform the voter of the right to appeal as
provided in section 201.195.

Sec. 37.

Minnesota Statutes 2004, section 203B.21,
subdivision 1, is amended to read:

Subdivision 1.

Form.

Absentee ballots under sections
203B.16 to 203B.27 shall conform to the requirements of the
Minnesota Election Law, except that modifications in the size or
form of ballots or envelopes may be made if necessary to satisfy
the requirements of the United States postal servicenew text begin , and the
design must provide an additional flap that when sealed,
conceals the signature, identification, and other information.
The flap must be perforated to permit election officials to
inspect the returned certificate for completeness or to
ascertain other information at any time after receiving the
returned ballot without opening the return envelopenew text end .

Sec. 38.

Minnesota Statutes 2004, section 203B.21,
subdivision 3, is amended to read:

Subd. 3.

Back of return envelope.

On the back of the
return envelope an affidavit form shall appear with space for:

(a) The voter's address of present or former residence in
Minnesota;

(b) A statement indicating the category described in
section 203B.16 to which the voter belongs;

(d) A statement that the voter personally marked the
ballots without showing them to anyone, or if physically unable
to mark them, that the voter directed another individual to mark
them; and

(e) The voter's military identification card number,
passport number, or, if the voter does not have a valid passport
or identification card, the signature and certification of an
individual authorized to administer oaths new text begin under federal law or
the law of the place where the oath was administered new text end or deleted text begin a
deleted text end commissioned or noncommissioned deleted text begin officer deleted text end new text begin personnel new text end of the
military not below the rank of sergeant or its equivalent.

new text begin The affidavit shall also contain a signed and dated oath in
the form required by section 705 of the Help America Vote Act,
Public Law 107-252, which must read:
new text end

new text begin "I swear or affirm, under penalty of perjury, that:
new text end

new text begin I am a member of the uniformed services or merchant marine
on active duty or an eligible spouse or dependent of such a
member; a United States citizen temporarily residing outside the
United States; or other United States citizen residing outside
the United States; and I am a United States citizen, at least 18
years of age (or will be by the date of the election), and I am
eligible to vote in the requested jurisdiction; I have not been
convicted of a felony, or other disqualifying offense, or been
adjudicated mentally incompetent, or, if so, my voting rights
have been reinstated; and I am not registering, requesting a
ballot, or voting in any other jurisdiction in the United States
except the jurisdiction cited in this voting form. In voting, I
have marked and sealed my ballot in private and have not allowed
any person to observe the marking of the ballot, except for
those authorized to assist voters under state or federal law. I
have not been influenced.
new text end

new text begin My signature and date below indicate when I completed this
document.
new text end

new text begin The information on this form is true, accurate, and
complete to the best of my knowledge. I understand that a
material misstatement of fact in completion of this document may
constitute grounds for a conviction for perjury."
new text end

Sec. 39.

Minnesota Statutes 2004, section 203B.24,
subdivision 1, is amended to read:

Subdivision 1.

Check of voter eligibility; proper
execution of affidavit.

Upon receipt of an absentee ballot
returned as provided in sections 203B.16 to 203B.27, the
election judges shall compare the voter's name with the names
appearing on their copy of the application records to insure
that the ballot is from a voter eligible to cast an absentee
ballot under sections 203B.16 to 203B.27. deleted text begin Any discrepancy or
disqualifying fact shall be noted on the envelope by the
election judges.deleted text end new text begin The election judges shall mark the return
envelope "Accepted" and initial or sign the return envelope
below the word "Accepted" if the election judges are satisfied
that:
new text end

new text begin (1) the voter's name on the return envelope appears in
substantially the same form as on the application records
provided to the election judges by the county auditor;
new text end

new text begin (2) the voter has signed the federal oath prescribed
pursuant to section 705(b)(2) of the Help America Vote Act,
Public Law 107-252;
new text end

new text begin (3) the voter has set forth the voter's military
identification number or passport number or, if those numbers do
not appear, a person authorized to administer oaths under
federal law or the law of the place where the oath was
administered or a witness who is military personnel with a rank
at or above the rank of sergeant or its equivalent has signed
the ballot; and
new text end

new text begin (4) the voter has not already voted at that election,
either in person or by absentee ballot.
new text end

new text begin An absentee ballot case pursuant to sections 203B.16 to
203B.27 may only be rejected for the lack of one of clauses (1)
to (4). In particular, failure to place the envelope within the
security envelope before placing it in the outer white envelope
is not a reason to reject an absentee ballot.
new text end

new text begin Election judges must note the reason for rejection on the
back of the envelope in the space provided for that purpose.
new text end

Failure to return unused ballots shall not invalidate a
marked ballot, but a ballot shall not be counted if the
affidavit on the return envelope is not properly executed. In
all other respects the provisions of the Minnesota Election Law
governing deposit and counting of ballots shall apply.

Sec. 40.

Minnesota Statutes 2004, section 204B.10,
subdivision 6, is amended to read:

Subd. 6.

Ineligible voter.

Upon receipt of a certified
copy of a final judgment or order of a court of competent
jurisdiction that a person who has filed an affidavit of
candidacy or who has been nominated by petition:

(1) has been convicted of treason or a felony and the
person's civil rights have not been restored;

(2) is under guardianship of the person; or

(3) has been found by a court of law to be legally
incompetent;

the filing officer shall notify the person by certified mail at
the address shown on the affidavit or petition, andnew text begin , for offices
other than president of the United States, vice-president of the
United States, United States senator, and United States
representative in Congress,new text end shall not certify the person's name
to be placed on the ballot. The actions of a filing officer
under this subdivision are subject to judicial review under
section 204B.44.

Sec. 41.

Minnesota Statutes 2004, section 204B.14,
subdivision 2, is amended to read:

Subd. 2.

Separate precincts; combined polling place.

(a)
The following shall constitute at least one election precinct:

(1) each city ward; and

(2) each town and each statutory city.

(b) A single, accessible, combined polling place may be
established no later than June 1 of any year:

(1) for any city of the third or fourth class, any town, or
any city having territory in more than one county, in which all
the voters of the city or town shall cast their ballots;

(2) for two contiguous precincts in the same municipality
that have a combined total of fewer than 500 registered voters;
or

(3) for up to four contiguous municipalities located
entirely outside the metropolitan area, as defined by section
deleted text begin 473.121, subdivision 2 deleted text end new text begin 200.02, subdivision 24new text end , that are
contained in the same county.

A copy of the ordinance or resolution establishing a
combined polling place must be filed with the county auditor
within 30 days after approval by the governing body. A polling
place combined under clause (3) must be approved by the
governing body of each participating municipality. A
municipality withdrawing from participation in a combined
polling place must do so by filing a resolution of withdrawal
with the county auditor no later than May 1 of any year.

The secretary of state shall provide a separate polling
place roster for each precinct served by the combined polling
place. A single set of election judges may be appointed to
serve at a combined polling place. The number of election
judges required must be based on the total number of persons
voting at the last similar election in all precincts to be
voting at the combined polling place. Separate ballot boxes
must be provided for the ballots from each precinct. The
results of the election must be reported separately for each
precinct served by the combined polling place, except in a
polling place established under clause (2) where one of the
precincts has fewer than ten registered voters, in which case
the results of that precinct must be reported in the manner
specified by the secretary of state.

Sec. 42.

Minnesota Statutes 2004, section 204B.16,
subdivision 1, is amended to read:

Subdivision 1.

Authority; location.

new text begin (a) new text end The governing
body of each municipality and of each county with precincts in
unorganized territory shall designate by ordinance or resolution
a polling place for each election precinct. Polling places must
be designated and ballots must be distributed so that no one is
required to go to more than one polling place to vote in a
school district and municipal election held on the same day.
The polling place for a precinct in a city or in a school
district located in whole or in part in the metropolitan area
defined by section deleted text begin 473.121 deleted text end new text begin 200.02, subdivision 24,new text end shall be
located within the boundaries of the precinct or within 3,000
feet of one of those boundaries unless a single polling place is
designated for a city pursuant to section 204B.14, subdivision
2, or a school district pursuant to section 205A.11. The
polling place for a precinct in unorganized territory may be
located outside the precinct at a place which is convenient to
the voters of the precinct. If no suitable place is available
within a town or within a school district located outside the
metropolitan area defined by section deleted text begin 473.121 deleted text end new text begin 200.02, subdivision
24new text end , then the polling place for a town or school district may be
located outside the town or school district within five miles of
one of the boundaries of the town or school district.

new text begin (b) Each polling place serving precincts in which, in
aggregate, there were more than 100 voters in the most recent
similar election, must be to the extent the governing body
determines it is practicable, at least 750 square feet, with an
additional 60 square feet for each 150 voters in excess of 400
that voted in the most recent similar election.
new text end

Sec. 43.

Minnesota Statutes 2004, section 204B.16,
subdivision 5, is amended to read:

Subd. 5.

Access by elderly and deleted text begin handicapped deleted text end new text begin persons with
disabilitiesnew text end .

Each polling place shall be accessible to and
usable by elderly new text begin individuals new text end and deleted text begin physically handicapped
deleted text end individuals new text begin with disabilitiesnew text end . A polling place is deemed to be
accessible and usable if it complies with the standards in
paragraphs (a) to (f).

(a) At least one set of doors must have a minimum width of
deleted text begin 31 deleted text end new text begin 32 new text end inches if the doors must be used to enter or leave the
polling place.

(b) Any curb adjacent to the main entrance to a polling
place must have curb cuts or temporary ramps. Where the main
entrance is not the accessible entrance, any curb adjacent to
the accessible entrance must also have curb cuts or temporary
ramps.

(c) Where the main entrance is not the accessible entrance,
a sign shall be posted at the main entrance giving directions to
the accessible entrance.

(d) At least one set of stairs must have a temporary
handrail and ramp if stairs must be used to enter or leave the
polling place.

(e) No barrier in the polling place may impede the path of
deleted text begin the physically handicapped deleted text end new text begin persons with disabilities new text end to the
voting booth.

(f) At least one deleted text begin handicapped deleted text end parking space new text begin for persons with
disabilitiesnew text end , which may be temporarily so designated by the
municipality for the day of the election, must be available near
the accessible entrance.

The doorway, handrails, ramps, and handicapped parking
provided pursuant to this subdivision must conform to the
standards specified in the State Building Code for accessibility
by deleted text begin handicapped deleted text end persons new text begin with disabilitiesnew text end .

A governing body shall designate as polling places only
those places which meet the standards prescribed in this
subdivision unless no available place within a precinct is
accessible or can be made accessible.

Sec. 44.

Minnesota Statutes 2004, section 204B.18,
subdivision 1, is amended to read:

Subdivision 1.

Boothsnew text begin ; voting stationsnew text end .

Each polling
place must contain deleted text begin a number of deleted text end new text begin at least two new text end voting booths deleted text begin in
proportion to the number of individuals eligible to vote in the
precinct deleted text end new text begin or self-contained voting stations plus one additional
voting booth or self-contained voting station for each 150
voters in excess of 200 registered in the precinctnew text end . Each
booth new text begin or station new text end must be at least six feet high, three feet deep
and two feet wide with a shelf at least two feet long and one
foot wide placed at a convenient height for writing. The
booth new text begin or station new text end shall deleted text begin be provided with a door or
curtains deleted text end new text begin permit the voter to vote privately and independentlynew text end .
Each deleted text begin accessible deleted text end polling place must have at least one accessible
voting booth or other accessible voting station new text begin and beginning
with federal and state elections held after December 31, 2005,
and county, municipal, and school district elections held after
December 31, 2007, one voting system that conforms to section
301(a)(3)(B) of the Help America Vote Act, Public Law 107-252new text end .
All booths or stations must be constructed so that a voter is
free from observation while marking ballots. deleted text begin In all other
polling places every effort must be made to provide at least one
accessible voting booth or other accessible voting station.
deleted text end During the hours of voting, the booths or stations must have
instructions, a pencil, and other supplies needed to mark the
ballots. deleted text begin If needed,deleted text end A chair must be provided for elderly deleted text begin and
handicapped deleted text end voters new text begin and voters with disabilities new text end to use while
voting new text begin or waiting to vote. Stable flat writing surfaces must
also be made available to voters who are completing
election-related formsnew text end . All ballot boxes, voting booths, voting
stations, and election judges must be in open public view in the
polling place.

Sec. 45.

Minnesota Statutes 2004, section 204B.22,
subdivision 3, is amended to read:

Subd. 3.

Minimum number deleted text begin required in certain precincts deleted text end new text begin of
election judgesnew text end .

At each deleted text begin state primary or state general
deleted text end election in precincts deleted text begin using an electronic voting system with
marking devices and deleted text end in which more than 400 votes were cast at
the last similar election, the minimum number of election judges
is three plus one judge to demonstrate the use of the voting
machine or devicenew text begin , and the number of additional election judges
to be appointed is one for every 200 votes cast in that precinct
in the most recent similar general electionnew text end .

Sec. 46.

Minnesota Statutes 2004, section 204B.27,
subdivision 1, is amended to read:

Subdivision 1.

Blank forms.

At least deleted text begin 25 deleted text end new text begin 14 new text end days before
every state election the secretary of state shall transmit to
each county auditor deleted text begin a sufficient number of blank county abstract
forms and other deleted text end new text begin examples of any new text end blank forms new text begin to be used as new text end the
secretary of state deems necessary for the conduct of the
election. new text begin County abstract forms may be provided to auditors
electronically via the Minnesota State Election Reporting System
maintained by the secretary of state, and must be available at
least one week prior to the election.
new text end

Sec. 47.

Minnesota Statutes 2004, section 204B.27,
subdivision 3, is amended to read:

Subd. 3.

Instruction posters.

At least 25 days before
every state electionnew text begin ,new text end the secretary of state shall prepare and
furnish to the county auditor of each county deleted text begin in which paper
ballots are used,deleted text end voter instruction posters printed in large
type upon cards or heavy paper. The instruction posters must
contain the information needed to enable the voters to cast
their deleted text begin paper deleted text end ballots quickly and correctly and indicate the types
of assistance available for elderly and handicapped voters. Two
instruction posters shall be furnished for each precinct deleted text begin in
which paper ballots are useddeleted text end . new text begin The secretary of state shall also
provide posters informing voters of eligibility requirements to
vote and of identification and proofs accepted for election day
registration. Posters furnished by the secretary of state must
also include all information required to be posted by the Help
America Vote Act, including: instructions on how to vote,
including how to cast a vote; instructions for mail-in
registrants and first-time voters; general information on voting
rights under applicable federal and state laws, and instructions
on how to contact the appropriate officials if these rights are
alleged to have been violated; and general information on
federal and state laws regarding prohibitions on acts of fraud
and misrepresentation.
new text end

Sec. 48.

Minnesota Statutes 2004, section 204B.33, is
amended to read:

204B.33 NOTICE OF FILING.

(a) Between June 1 and July 1 in each even numbered year,
the secretary of state shall notify each county auditor of the
offices to be voted for in that county at the next state general
election for which candidates file with the secretary of state.
The notice shall include the time and place of filing for those
offices new text begin and for judicial offices shall list the name of the
incumbent, if any, currently holding the seat to be voted fornew text end .
Within ten days after notification by the secretary of state,
each county auditor shall notify each municipal clerk in the
county of all the offices to be voted for in the county at that
election and the time and place for filing for those offices.
The county auditors and municipal clerks shall promptly post a
copy of that notice in their offices.

(b) At least two weeks before the first day to file an
affidavit of candidacy, the county auditor shall publish a
notice stating the first and last dates on which affidavits of
candidacy may be filed in the county auditor's office and the
closing time for filing on the last day for filing. The county
auditor shall post a similar notice at least ten days before the
first day to file affidavits of candidacy.

Sec. 49.

Minnesota Statutes 2004, section 204C.05,
subdivision 1a, is amended to read:

Subd. 1a.

Elections; organized town.

The governing body
of a town with less than 500 inhabitants according to the most
recent federal decennial census, which is located outside the
metropolitan area as defined in section deleted text begin 473.121 deleted text end new text begin 200.02new text end ,
subdivision deleted text begin 2 deleted text end new text begin 24new text end , may fix a later time for voting to begin at
state primary, special, or general elections, if approved by a
vote of the town electors at the annual town meeting. The
question of shorter voting hours must be included in the notice
of the annual town meeting before the question may be submitted
to the electors at the meeting. The later time may not be later
than 10:00 a.m. for special, primary, or general elections. The
town clerk shall either post or publish notice of the changed
hours and notify the county auditor of the change 30 days before
the election.

Sec. 50.

Minnesota Statutes 2004, section 204C.08,
subdivision 1, is amended to read:

Subdivision 1.

Display of flagnew text begin ; "vote here" signnew text end .

new text begin (a)
new text end Upon their arrival at the polling place on the day of election,
the election judges shall cause the national flag to be
displayed on a suitable staff at the entrance to the polling
place. The flag shall be displayed continuously during the
hours of voting and the election judges shall attest to that
fact by signing the flag certification statement on the precinct
summary statement. The election judges shall receive no
compensation for any time during which they intentionally fail
to display the flag as required by this subdivision.

new text begin (b) The election judges shall, immediately after displaying
the flag pursuant to paragraph (a), post the following:
new text end

new text begin (1) a "Vote Here" sign conspicuously near the flag, which
must be of a size not less than two feet high by four feet wide,
with letters printed in red in a font size of no less than
576-point type, against a white background; and
new text end

new text begin (2) within the building, if the polling place has more than
one room, signs indicating by arrows the direction in which to
proceed in order to reach the room containing the polling place.
new text end

Sec. 51.

Minnesota Statutes 2004, section 204C.24,
subdivision 1, is amended to read:

Subdivision 1.

Information requirements.

Precinct
summary statements shall be submitted by the election judges in
every precinct. For deleted text begin state deleted text end new text begin all new text end elections, the election judges
shall complete three or more copies of the summary statements,
and each copy shall contain the following information for each
kind of ballot:

(a) the number of votes each candidate received or the
number of yes and no votes on each question, the number of
undervotes or partially blank ballots, and the number of
overvotes or partially defective ballots with respect to each
office or question;

(b) the number of totally blank ballots, the number of
totally defective ballots, the number of spoiled ballots, and
the number of unused ballots;

(d) the number of voters registering on election day in
that precinct; and

(e) the signatures of the election judges who counted the
ballots certifying that all of the ballots cast were properly
piled, checked, and counted; and that the numbers entered by the
election judges on the summary statements correctly show the
number of votes cast for each candidate and for and against each
question.

At least two copies of the summary statement must be
prepared for elections not held on the same day as the state
elections.

Sec. 52.

Minnesota Statutes 2004, section 204C.28,
subdivision 1, is amended to read:

Subdivision 1.

County auditor.

Every county auditor
shall remain at the auditor's office to receive delivery of the
returns, to permit public inspection of the summary statements,
and to tabulate the votes until all have been tabulated and the
results made known, or until 24 hours have elapsed since the end
of the hours for voting, whichever occurs first. new text begin Every county
auditor shall keep a book in which, in the presence of the
municipal clerk or the election judges who deliver the returns,
the auditor shall make a record of all materials delivered, the
time of delivery, and the names of the municipal clerk or
election judges who made delivery. The county auditor shall
file the book and all envelopes containing ballots in a safe and
secure place with envelope seals unbroken. Access to the book
and ballots shall be strictly controlled. Accountability and a
record of access shall be maintained by the county auditor
during the period for contesting elections or, if a contest is
filed, until the contest has been finally determined.
Thereafter, the book shall be retained in the auditor's office
for the same period as the ballots as provided in section
204B.40.
new text end

The county auditor shall file all envelopes containing
ballots in a safe place with seals unbroken. If the envelopes
were previously opened by proper authority for examination or
recount, the county auditor shall have the envelopes sealed
again and signed by the individuals who made the inspection or
recount. The envelopes may be opened by the county canvassing
board if necessary to procure election returns that the election
judges inadvertently may have sealed in the envelopes with the
ballots. In that case, the envelopes shall be sealed again and
signed in the same manner as otherwise provided in this
subdivision.

Sec. 53.

Minnesota Statutes 2004, section 204C.50,
subdivision 1, is amended to read:

Subdivision 1.

Selection for review; notice.

(a)
new text begin Postelection review under this section must be conducted only on
the election for president, senator or representative in
Congress, constitutional offices, and legislative offices.
new text end

new text begin (b) new text end The Office of the Secretary of State shall, within
three days after each state general election beginning in 2006,
randomly select 80 precincts for postelection review as defined
in this section. The precincts must be selected so that an
equal number of precincts are selected in each congressional
district of the state. Of the precincts in each congressional
district, at least five must have had more than 500 votes cast,
and at least two must have had fewer than 500 votes cast. The
secretary of state must promptly provide notices of which
precincts are chosen to the election administration officials
who are responsible for the conduct of elections in those
precincts.

deleted text begin (b) deleted text end new text begin (c) new text end One week before the state general election
beginning in 2006, the secretary of state must post on the
office Web site the date, time, and location at which precincts
will be randomly chosen for review under this section. The
chair of each major political party may appoint a designee to
observe the random selection process.

Sec. 54.

Minnesota Statutes 2004, section 204C.50,
subdivision 2, is amended to read:

Subd. 2.

Scope and conduct of review.

Each review is
limited to federal and state offices and must consist of at
least the following:

(a) The election officials immediately responsible for a
precinct chosen for review must conduct the following review and
submit the results in writing to the State Canvassing Board
before it meets to canvass the election:

(1) a hand tally of the paper ballots new text begin or electronic ballot
marker recordnew text end , of whatever kind used in that precinct, for each
contested election;

(2) a recount using the actual machine and software used on
election day, if a precinct-count or central-count automated
voting system was used; and

(3) a comparison of the hand tally with the reported
results for the precinct in the county canvassing board report,
as well as the actual tape of any automated tabulation produced
by any precinct-count or central-count optical scan equipment
that may have been used to tabulate votes cast in that precinct.

(b) The staff of the Office of the Secretary of State shall
conduct or directly supervise a review of the procedures used by
the election officials at all levels for a precinct chosen for
review, including an inspection of the materials retained for
the official 22-month retention period, such as the rosters, the
incident log, and the ballots themselves. The staff must submit
a written report to the secretary of state before the next
regularly scheduled meeting of the State Canvassing Board.

Sec. 55.

Minnesota Statutes 2004, section 204D.03,
subdivision 1, is amended to read:

Subdivision 1.

State primary.

new text begin (a) new text end The state primary
shall be held on the first Tuesday after the second Monday in
September in each even-numbered year to select the nominees of
the major political parties for partisan offices and the
nominees for nonpartisan offices to be filled at the state
general election, other than presidential electors.

new text begin (b) If in any municipality or county there are no partisan
or nonpartisan offices for which nominees must be selected at
the state primary, no state primary shall be held in the
municipality or county. However, no later than 15 days after
the close of filings, the municipal clerk or county auditor in
such a municipality or county must post a notice in the office,
and send a copy of the notice to the secretary of state, stating
that no primary will be held in the municipality or county
because there are no partisan or nonpartisan offices for which
nominees must be selected in the municipality or county.
new text end

Sec. 56.

Minnesota Statutes 2004, section 204D.14,
subdivision 3, is amended to read:

Subd. 3.

Uncontested judicial offices.

Judicial
offices new text begin for a specific court new text end for which there is only one
candidate filed must appear after all new text begin other new text end judicial offices new text begin for
that same court new text end on the canary ballot.

Sec. 57.

Minnesota Statutes 2004, section 204D.27,
subdivision 5, is amended to read:

Subd. 5.

Canvass; special primary; state canvassing
board.

Not later than four days after the returns of the county
canvassing boards are certified to the secretary of state, the
State Canvassing Board shall complete its canvass of the special
primary. The secretary of state shall then promptly certify to
the county auditors the names of the nominated individualsnew text begin ,
prepare notices of nomination,new text end and notify each nominee of the
nomination.

Sec. 58.

new text begin [205.135] ELECTION REPORTING SYSTEM; CANDIDATE
FILING.
new text end

new text begin Subdivision 1. new text end

new text begin Even-numbered year. new text end

new text begin For regularly
scheduled municipal elections held in an even-numbered year, the
municipal clerk must provide the offices and questions to be
voted on in the municipality and the list of candidates for each
office to the county auditor for entry into the election
reporting system provided by the secretary of state no later
than 46 days prior to the election. The county auditor must
delegate, at the request of the municipality, the duty to enter
the information into the system to the municipal clerk.
new text end

new text begin Subd. 2. new text end

new text begin Odd-numbered year. new text end

new text begin For regularly scheduled
municipal elections held in an odd-numbered year, the municipal
clerk or county auditor must enter the offices and questions to
be voted on in the municipality and the list of candidates for
each office into the election reporting system no later than 46
days prior to the election.
new text end

Sec. 59.

Minnesota Statutes 2004, section 205.175,
subdivision 2, is amended to read:

Subd. 2.

Metropolitan area municipalities.

The governing
body of a municipality which is located within a metropolitan
county deleted text begin as defined by section 473.121 deleted text end new text begin included in the definition
of metropolitan area in section 200.02, subdivision 24,new text end may
designate the time during which the polling places will remain
open for voting at the next succeeding and all subsequent
municipal elections, provided that the polling places shall open
no later than 10:00 a.m. and shall close no earlier than 8:00
p.m. The resolution shall remain in force until it is revoked
by the municipal governing body.

Sec. 60.

new text begin [205.187] ELECTION REPORTING SYSTEM; PRECINCT
VOTES.
new text end

new text begin Subdivision 1. new text end

new text begin Even-numbered year. new text end

new text begin For regularly
scheduled municipal elections held in an even-numbered year, the
county auditor must enter the votes in each precinct for the
questions and offices voted on in the municipal election into
the election reporting system provided by the secretary of state.
new text end

new text begin Subd. 2. new text end

new text begin Odd-numbered year. new text end

new text begin For regularly scheduled
municipal elections held in an odd-numbered year, the municipal
clerk or county auditor must enter the votes in each precinct
for the offices and questions voted on in the municipality into
the election reporting system provided by the secretary of state.
new text end

Sec. 61.

new text begin [205A.075] ELECTION REPORTING SYSTEM; CANDIDATE
FILING.
new text end

new text begin Subdivision 1. new text end

new text begin Even-numbered year. new text end

new text begin For regularly
scheduled school district elections held in an even-numbered
year, the school district clerk must provide the offices and
questions to be voted on in the school district and the list of
candidates for each office to the county auditor for entry into
the election reporting system provided by the secretary of state
no later than 47 days prior to the election.
new text end

new text begin Subd. 2. new text end

new text begin Odd-numbered year. new text end

new text begin For regularly scheduled
school district elections held in an odd-numbered year, the
school district clerk or county auditor must enter the offices
and questions to be voted on in the school district and the list
of candidates for each office into the election reporting system
provided by the secretary of state no later than 47 days prior
to the election.
new text end

Sec. 62.

new text begin [205A.076] ELECTION REPORTING SYSTEM; PRECINCT
VOTES.
new text end

new text begin Subdivision 1. new text end

new text begin Even-numbered year. new text end

new text begin For regularly
scheduled school district elections held in an even-numbered
year, the county auditor must enter the votes in each precinct
for the questions and offices voted on in the school district
election into the election reporting system provided by the
secretary of state.
new text end

new text begin Subd. 2. new text end

new text begin Odd-numbered year. new text end

new text begin For regularly scheduled
school district elections held in an odd-numbered year, the
school district clerk or county auditor must enter the votes in
each precinct for the offices and questions voted on in the
school district into the election reporting system provided by
the secretary of state.
new text end

Sec. 63.

Minnesota Statutes 2004, section 205A.09,
subdivision 1, is amended to read:

Subdivision 1.

Metropolitan area school districts.

At a
school district election in a school district located in whole
or in part within a metropolitan county deleted text begin as defined by section
473.121 deleted text end new text begin included in the definition of metropolitan area in
section 200.02, subdivision 24new text end , the school board, by resolution
adopted before giving notice of the election, may designate the
time during which the polling places will remain open for voting
at the next succeeding and all later school district elections.
The polling places must open no later than 10:00 a.m. and close
no earlier than 8:00 p.m. The resolution shall remain in force
until it is revoked by the school board.

Sec. 64.

Minnesota Statutes 2004, section 206.56,
subdivision 2, is amended to read:

Subd. 2.

Automatic tabulating equipment.

"Automatic
tabulating equipment" includes deleted text begin apparatus deleted text end new text begin machines, resident
firmware, and programmable memory units new text end necessary to new text begin optically
scan,new text end automatically examinenew text begin ,new text end and count votes designated on
ballot cardsdeleted text begin , and data processing machines which can be used for
counting ballots and tabulating resultsdeleted text end .

Sec. 65.

Minnesota Statutes 2004, section 206.56,
subdivision 3, is amended to read:

Subd. 3.

Ballot.

"Ballot" includes deleted text begin ballot cards and
deleted text end paper ballotsnew text begin , ballot cards, the paper ballot marked by an
electronic marking device, and the data securely transmitted
electronically to the optical scan machine in the precinct from
a machine that creates an individual, discrete paper record of
each votenew text end .

Sec. 66.

Minnesota Statutes 2004, section 206.56,
subdivision 7, is amended to read:

Subd. 7.

Counting center.

"Counting center" means a
place selected by the governing body of a municipality where deleted text begin an
deleted text end new text begin a central count new text end electronic voting system is used for the
automatic processing and counting of ballots.

Sec. 67.

Minnesota Statutes 2004, section 206.56,
subdivision 8, is amended to read:

Subd. 8.

Electronic voting system.

"Electronic voting
system" means a system in which the voter records votes by means
of marking a ballot, deleted text begin which is designed deleted text end so that votes may be
counted by automatic tabulating equipment at a counting
center new text begin or in the precinct or polling place where the ballot is
castnew text end .

new text begin An electronic voting system includes automatic tabulating
equipment; nonelectronic ballot markers; electronic ballot
markers, including electronic ballot display, audio ballot
reader, and devices by which the voter will register the voter's
voting intent; software used to program automatic tabulators and
layout ballots; computer programs used to accumulate precinct
results; ballots; secrecy folders; system documentation; and
system testing results.
new text end

Sec. 68.

Minnesota Statutes 2004, section 206.56,
subdivision 9, is amended to read:

Subd. 9.

new text begin manual new text end marking device.

" new text begin Manual new text end marking device"
means any approved device for new text begin directly new text end marking a ballot new text begin by hand
new text end with inknew text begin , pencil,new text end or other substance which will enable the
ballot to be tabulated by means of automatic tabulating
equipment.

Sec. 69.

Minnesota Statutes 2004, section 206.56, is
amended by adding a subdivision to read:

new text begin Subd. 9a. new text end

new text begin Electronic ballot marker. new text end

new text begin "Electronic ballot
marker" means equipment that is part of an electronic voting
system that uses an electronic ballot display or audio ballot
reader to: (1) mark a nonelectronic ballot with votes selected
by a voter; or (2) securely transmit a ballot to the optical
scan machine in the precinct from a machine that creates an
individual, discrete paper record of each vote.
new text end

Sec. 70.

Minnesota Statutes 2004, section 206.56, is
amended by adding a subdivision to read:

new text begin Subd. 9b. new text end

new text begin Assistive voting technology. new text end

new text begin "Assistive voting
technology" means touch-activated screen, buttons, keypad,
sip-and-puff input device, keyboard, earphones, or any other
device used with an electronic ballot marker that assists voters
to use an audio or electronic ballot display in order to select
votes.
new text end

Sec. 71.

Minnesota Statutes 2004, section 206.56, is
amended by adding a subdivision to read:

new text begin Subd. 9c. new text end

new text begin Electronic ballot display. new text end

new text begin "Electronic ballot
display" means a graphic representation of a ballot on a
computer monitor or screen on which a voter may make vote
choices for candidates and questions for the purpose of marking
a nonelectronic ballot or for the purpose of securely
transmitting a ballot to the optical scan machine in the
precinct from a machine that creates an individual, discrete
paper record of each vote.
new text end

Sec. 72.

Minnesota Statutes 2004, section 206.56, is
amended by adding a subdivision to read:

new text begin Subd. 9d. new text end

new text begin Audio ballot reader. new text end

new text begin "Audio ballot reader"
means an audio representation of a ballot that can be used with
other assistive voting technology to permit a voter to mark
votes on a nonelectronic ballot or to securely transmit a ballot
to the optical scan machine in the precinct from a machine that
creates an individual, discrete paper record of each vote using
an electronic ballot marker.
new text end

Sec. 73.

Minnesota Statutes 2004, section 206.57,
subdivision 1, is amended to read:

Subdivision 1.

Examination and report by secretary of
state; approval.

A vendor of an electronic voting system may
apply to the secretary of state to examine the system and to
report as to its compliance with the requirements of law and as
to its accuracy, durability, efficiency, and capacity to
register the will of voters. The secretary of state or a
designee shall examine the system submitted and file a report on
it in the Office of the Secretary of State. Examination is not
required of every individual machine or counting device, but
only of each type of electronic voting system before its
adoption, use, or purchase and before its continued use after
significant changes have been made in an approved system. The
examination must include the ballot programmingdeleted text begin ,deleted text end new text begin ; electronic
ballot marking, including all assistive technologies intended to
be used with the system;new text end vote countingdeleted text begin ,deleted text end new text begin ;new text end and vote accumulation
functions of each voting system.

If the report of the secretary of state or the secretary's
designee concludes that the kind of system examined complies
with the requirements of sections 206.55 to 206.90 and can be
used safely, the system shall be deemed approved by the
secretary of state, and may be adopted and purchased for use at
elections in this state. A voting system not approved by the
secretary of state may not be used at an election in this
state. The secretary of state may adopt permanent rules
consistent with sections 206.55 to 206.90 relating to the
examination and use of electronic voting systems.

Sec. 74.

Minnesota Statutes 2004, section 206.57,
subdivision 5, is amended to read:

Subd. 5.

Voting system for disabled voters.

new text begin In federal
and state elections held new text end after December 31, 2005, new text begin and in county,
municipal, and school district elections held after December 31,
2007,new text end the voting method used in each polling place must include
a voting system that is accessible for individuals with
disabilities, including nonvisual accessibility for the blind
and visually impaired in a manner that provides the same
opportunity for access and participation, including privacy and
independence, as for other voters.

Sec. 75.

Minnesota Statutes 2004, section 206.57, is
amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Election assistance commission standards. new text end

new text begin If,
prior to January 1, 2006, the federal Election Assistance
Commission has not established standards for an electronic
ballot marker or other voting system component that is required
to enable a voting system to meet the requirements of
subdivision 5, the secretary of state may certify the voting
system on an experimental basis pending the completion of
federal standards, notwithstanding subdivision 6. Within two
years after the Election Assistance Commission issues standards
for a voting system component used in a voting system authorized
under this subdivision, the secretary of state must review or
reexamine the voting system to determine whether the system
conforms to federal standards.
new text end

Sec. 76.

Minnesota Statutes 2004, section 206.58,
subdivision 1, is amended to read:

Subdivision 1.

Municipalities.

new text begin (a) new text end The governing body of
a municipality, at a regular meeting or at a special meeting
called for the purpose, deleted text begin may deleted text end new text begin must new text end provide for the use of deleted text begin an deleted text end new text begin at
least one new text end electronic voting system new text begin that conforms to the
requirements of section 301(a)(3)(B) of the Help America Vote
Act, Public Law 107-252,new text end in deleted text begin one or more precincts deleted text end new text begin each polling
place new text end and at all elections deleted text begin in the precinctsdeleted text end , subject to approval
by the county auditor. new text begin This paragraph applies to federal and
state elections held after December 31, 2005, and to county,
municipal, and school district elections held after December 31,
2007.
new text end

new text begin (b) new text end The governing body shall disseminate information to the
public about the use of a new voting system at least 60 days
prior to the election and shall provide for instruction of
voters with a demonstration voting system in a public place for
the six weeks immediately prior to the first election at which
the new voting system will be used.

new text begin (c) new text end No system may be adopted or used unless it has been
approved by the secretary of state pursuant to section 206.57.

Sec. 77.

new text begin [206.585] STATE VOTING SYSTEMS CONTRACTS.
new text end

new text begin The secretary of state shall establish a working group
including representatives of county auditors, municipal clerks,
and members of the disabilities community to assist in
developing a request for proposals and subsequent state voting
systems contracts. Each contract should, if practical, include
provisions for maintenance of the equipment purchased. Counties
and municipalities may purchase voting systems and obtain
related election services from the state contracts. The voting
systems contracts shall address precinct-based optical scan
voting equipment, ballot marking equipment for persons with
disabilities and other voters, and assistive voting machines
that combine voting methods used for persons with disabilities
with precinct-based optical scan voting machines.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 78.

Minnesota Statutes 2004, section 206.61,
subdivision 4, is amended to read:

Subd. 4.

Order of candidates.

On the "State Partisan
Primary Ballot" prepared for primary elections, and on the white
ballot prepared for the general election, the order of the names
of nominees or names of candidates for election shall be the
same as required for paper ballots. More than one column or row
may be used for the same office or party. new text begin Electronic ballot
display and audio ballot readers must conform to the candidate
order on the optical scan ballot used in the precinct.
new text end

Sec. 79.

Minnesota Statutes 2004, section 206.61,
subdivision 5, is amended to read:

Subd. 5.

Alternation.

The provisions of the election
laws requiring the alternation of names of candidates must be
observed as far as practicable by changing the order of the
names on an electronic voting system in the various precincts so
that each name appears on the machines or marking devices used
in a municipality substantially an equal number of times in the
first, last, and in each intermediate place in the list or group
in which they belong. However, the arrangement of candidates'
names must be the same on all voting systems used in the same
precinct. If the number of names to be alternated exceeds the
number of precincts, the election official responsible for
providing the ballots, in accordance with subdivision 1, shall
determine by lot the alternation of names.

new text begin If an electronic ballot marker is used with a paper ballot
that is not an optical scan ballot card, the manner of
alternation of candidate names on the paper ballot must be as
prescribed for optical scan ballots in this subdivision. If a
machine is used to securely transmit a ballot to the optical
scan machine in the precinct from a machine that creates an
individual, discrete paper record of each vote, the manner of
alternation of candidate names on the transmitting machine must
be as prescribed for optical scan ballots in this subdivision.
new text end

Sec. 80.

Minnesota Statutes 2004, section 206.64,
subdivision 1, is amended to read:

Subdivision 1.

General provisions for electronic system
voting.

Each electronic voting system booth must be placed and
protected so that it is accessible to only one voter at a time
and is in full view of all the election judges and challengers
at the polling place. The election judges shall admit one
individual at a time to each booth after determining that the
individual is eligible to vote. Voting by electronic voting
system must be secret, except for voters who deleted text begin need deleted text end new text begin request
new text end assistance. A voter may remain inside the voting booth for
deleted text begin three minutes deleted text end new text begin the time reasonably required for the voter to
complete the ballotnew text end . A voter who refuses to leave the voting
booth after new text begin a reasonable amount of time, but not less than new text end three
minutesnew text begin ,new text end must be removed by the election judges.

Sec. 81.

new text begin [206.65] SYSTEMS REQUIRED IN POLLING PLACES;
CO-LOCATION OF PRECINCTS.
new text end

new text begin In federal and state elections held after December 31,
2005, and in county, municipal, and school district elections
held after December 31, 2007, each polling place must be
equipped with an electronic voting system equipped for
individuals with disabilities. Precincts that share a polling
place with other precincts pursuant to section 204B.14,
subdivision 4, may share voting equipment. Notwithstanding
section 204B.14, upon written request to and approval by the
secretary of state, the responsible municipal clerks may
co-locate noncontiguous precincts located in one or more
counties into one convenient polling place. To the extent that
an election includes offices for more than one jurisdiction,
operating costs are to be allocated among those jurisdictions.
new text end

new text begin For the purposes of this section, "operating costs" include
actual county and municipal costs for hardware maintenance,
election day technical support, software licensing, system
programming, voting system testing, training of county and
municipal staff in the use of the assistive voting systems,
transportation of the assistive voting systems to and from the
polling places, and storage of the assistive voting systems
between elections.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 82.

Minnesota Statutes 2004, section 206.80, is
amended to read:

206.80 ELECTRONIC VOTING SYSTEMS.

new text begin (a) new text end An electronic voting system may not be employed unless
it:

(1) permits every voter to vote in secret;

(2) permits every voter to vote for all candidates and
questions for whom or upon which the voter is legally entitled
to vote;

(3) provides for write-in voting when authorized;

(4) rejects deleted text begin by means of the automatic tabulating
equipment deleted text end new text begin automaticallynew text end , except as provided in section 206.84
with respect to write-in votes, all votes for an office or
question when the number of votes cast on it exceeds the number
which the voter is entitled to cast;

(5) permits a voter at a primary election to select
secretly the party for which the voter wishes to vote; deleted text begin and
deleted text end

(6) rejectsdeleted text begin , by means of the automatic tabulating
equipment,deleted text end new text begin automatically new text end all votes cast in a primary election by
a voter when the voter votes for candidates of more than one
partydeleted text begin .deleted text end new text begin ; and
new text end

new text begin (7) provides every voter an opportunity to electronically
verify votes and to change votes or correct any error before the
voter's ballot is cast and counted, produces either a permanent
paper record or a paper ballot that is then cast by the voter
that is preserved as an official record available for use in any
recount.
new text end

new text begin (b) An electronic voting system purchased on or after the
effective date of this section may not be employed unless it
accepts and tabulates, in the precinct or at a counting center,
a marked optical scan ballot or creates a marked optical scan
ballot that can be tabulated in the precinct or at a counting
center by an optical scan machine certified for use in this
state, or is a machine that securely transmits a vote
electronically to an optical scan machine in the precinct while
creating a paper record of each vote.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 83.

Minnesota Statutes 2004, section 206.81, is
amended to read:

206.81 ELECTRONIC VOTING SYSTEMS; EXPERIMENTAL USE.

(a) The secretary of state may deleted text begin approve deleted text end new text begin certify new text end an
electronic voting system for experimental use at an election
prior to its approval for general use.

(b) deleted text begin The secretary of state must approve one or more direct
recording electronic voting systems for experimental use at an
election before their approval for general use and may impose
restrictions on their use. At least one voting system approved
under this paragraph must permit sighted persons to vote and at
least one system must permit a blind or visually impaired voter
to cast a ballot independently and privately.
deleted text end

deleted text begin (c) deleted text end Experimental use must be observed by the secretary of
state or the secretary's designee and the results observed must
be considered at any subsequent proceedings for approval for
general use.

deleted text begin (d) deleted text end new text begin (c) new text end The secretary of state may adopt rules consistent
with sections 206.55 to 206.90 relating to experimental use.
The extent of experimental use must be determined by the
secretary of state.

Sec. 84.

Minnesota Statutes 2004, section 206.82,
subdivision 1, is amended to read:

Subdivision 1.

Program.

A program new text begin or programs new text end for use in
an election conducted by means of an electronic voting system new text begin or
using an electronic ballot marker new text end shall be prepared at the
direction of the county auditor or municipal clerk who is
responsible for the conduct of the election and shall be
independently verified by a competent person designated by that
official. The term "competent person" as used in this section
means a person who can demonstrate knowledge as a computer
programmer and who is other than and wholly independent of any
person operating or employed by the counting center or the
corporation or other preparer of the program. A test deck
prepared by a competent person shall be used for independent
verification of the program; it shall test the maximum digits
used in totaling the returns and shall be usable by insertion
during the tabulation process as well as prior to tabulation. new text begin A
test deck must also be prepared using the electronic ballot
marker program and must also be used to verify that all valid
votes counted by the vote tabulator may be selected using the
electronic ballot marker.new text end The secretary of state shall adopt
rules further specifying test procedures.

Sec. 85.

Minnesota Statutes 2004, section 206.82,
subdivision 2, is amended to read:

Subd. 2.

Plan.

The municipal clerk in a municipality
where an electronic voting system is used and the county auditor
of a county in which new text begin an electronic voting system is used in more
than one municipality and the county auditor of a county in
which new text end a counting center serving more than one municipality is
located shall prepare a plan which indicates acquisition of
sufficient facilities, computer time, and professional services
and which describes the proposed manner of complying with
section 206.80. The plan must be signed, notarized, and
submitted to the secretary of state more than 60 days before the
first election at which the municipality uses an electronic
voting system. Prior to July 1 of each subsequent general
election year, the clerk or auditor shall submit to the
secretary of state notification of any changes to the plan on
file with the secretary of state. The secretary of state shall
review each plan for its sufficiency and may request technical
assistance from the Department of Administration or other agency
which may be operating as the central computer authority. The
secretary of state shall notify each reporting authority of the
sufficiency or insufficiency of its plan within 20 days of
receipt of the plan. The attorney general, upon request of the
secretary of state, may seek a district court order requiring an
election official to fulfill duties imposed by this subdivision
or by rules promulgated pursuant to this section.

Sec. 86.

Minnesota Statutes 2004, section 206.83, is
amended to read:

206.83 TESTING OF VOTING SYSTEMS.

The official in charge of elections shall new text begin within 14 days
prior to election day new text end have the voting system tested to ascertain
that the system will correctly new text begin mark or securely transmit to the
optical scan machine in the precinct ballots using all methods
supported by the system, including through assistive technology,
and new text end count the votes cast for all candidates and on all questions
deleted text begin within 14 days prior to election daydeleted text end . Public notice of the time
and place of the test must be given at least two days in advance
by publication once in official newspapers. The test must be
observed by at least two election judges, who are not of the
same major political party, and must be open to representatives
of the political parties, candidates, the press, and the
public. The test must be conducted by new text begin (1) new text end processing a
preaudited group of ballots punched or marked to record a
predetermined number of valid votes for each candidate and on
each question, and must include for each office one or more
ballot cards which have votes in excess of the number allowed by
law in order to test the ability of the voting system new text begin tabulator
and electronic ballot marker new text end to reject those votesnew text begin ; and (2)
processing an additional test deck of ballots marked using the
electronic ballot marker to be employed in the precinct,
including ballots marked or securely transmitted to the optical
scan machine in the precinct using the electronic ballot
display, audio ballot reader, and each of the assistive voting
peripheral devices used with the electronic ballot markernew text end . If
any error is detected, the cause must be ascertained and
corrected and an errorless count must be made before the voting
system may be used in the election. After the completion of the
test, the programs used and ballot cards must be sealed,
retained, and disposed of as provided for paper ballots.

Sec. 87.

Minnesota Statutes 2004, section 206.84,
subdivision 1, is amended to read:

Subdivision 1.

Instruction of judges, voters.

The
officials in charge of elections shall determine procedures to
instruct election judges and voters in the use of electronic
voting system new text begin manual new text end marking devices new text begin and the electronic ballot
marker, including assistive peripheral devicesnew text end .

Sec. 88.

Minnesota Statutes 2004, section 206.84,
subdivision 3, is amended to read:

Subd. 3.

Ballots.

The ballot information must be in the
same order provided for paper ballots, except that the
information may be in vertical or horizontal rows, or on a
number of separate pages. The secretary of state shall provide
by rule for standard ballot formats for electronic voting
systems. new text begin Electronic ballot displays and audio ballot readers
shall be in the order provided for on the optical scan ballot.
Electronic ballot displays may employ zooms or other devices as
assistive voting technology. Audio ballot readers may employ
rewinds or audio cues as assistive voting technology.
new text end

Ballot cards may contain special printed marks deleted text begin and holes deleted text end as
required for proper positioning and reading of the ballots by
electronic vote counting equipment. Ballot cards must contain
an identification of the precinct for which they have been
prepared which can be read visually and which can be tabulated
by the automatic tabulating equipment.

Sec. 89.

Minnesota Statutes 2004, section 206.84,
subdivision 6, is amended to read:

Subd. 6.

Duties of official in charge.

The official in
charge of elections in each municipality where an electronic
voting system is used shall have the voting systems put in
order, set, adjusted, and made ready for voting when delivered
to the election precincts. The official shall also provide each
precinct with a container for transporting ballot cards to the
counting location after the polls close. The container shall be
of sturdy material to protect the ballots from all reasonably
foreseeable hazards including auto collisions. The election
judges shall meet at the polling place at least one hour before
the time for opening the polls. Before the polls open the
election judges shall compare the ballot cards used with the
sample ballotsnew text begin , electronic ballot displays, and audio ballot
reader new text end furnished to see that the names, numbers, and letters on
both agree and shall certify to that fact on forms provided for
the purpose. The certification must be filed with the election
returns.

Sec. 90.

new text begin [206.845] BALLOT RECORDING AND COUNTING
SECURITY.
new text end

new text begin Subdivision 1. new text end

new text begin Permitted and prohibited modes of
transfer. new text end

new text begin Ballot recording and counting systems must be secured
physically and electronically against unauthorized access.
Except for wired connections within the polling place, ballot
recording and counting systems must not be connected to, or
operated on, directly or indirectly, any electronic network
including internal office networks, LANs, the Internet, or the
World Wide Web. Wireless communications may not be used in any
way in a vote recording or vote counting system. Wireless,
device-to-device capability is not allowed. No connection by
modem is allowed.
new text end

new text begin Transfer of information from the ballot recording or
counting system to another system for network or broadcast must
be made by disk, tape, or other physical means of communication
other than direct or indirect electronic connection of the vote
recording or vote counting system.
new text end

new text begin Subd. 2. new text end

new text begin Transmit to central reporting location. new text end

new text begin After
the close of the polls, counties employing precinct ballot
counting devices may telephonically or electronically transmit
the accumulated tally for each device to a central reporting
location. The transmission must not be made using the precinct
counting or recording device but must be made independently of
that device. Before making a telephonic or electronic
transmission, the precinct election officer must create a
printed record of the results of the election for that
precinct. During the canvassing period, the results transmitted
telephonically or electronically must be considered unofficial
until a complete reconciliation of the results has been
performed.
new text end

Sec. 91.

Minnesota Statutes 2004, section 206.85,
subdivision 1, is amended to read:

Subdivision 1.

Duties of responsible official.

The
official in charge of elections in a municipality where an
electronic voting system is used new text begin at a counting center new text end must:

(a) be present or personally represented throughout the
counting center proceedings;

(b) be responsible for acquiring sufficient facilities and
personnel to ensure timely and lawful processing of votes;

(c) be responsible for the proper training of all personnel
participating in counting center proceedings and deputize all
personnel who are not otherwise election judges;

(d) maintain actual control over all proceedings and be
responsible for the lawful execution of all proceedings in the
counting center whether or not by experts;

(e) be responsible for assuring the lawful retention and
storage of ballots and read-outs; and

(f) arrange for observation by the public and by
candidates' representatives of counting center procedures by
publishing the exact location of the counting center in a legal
newspaper at least once during the week preceding the week of
election and in the newspaper of widest circulation once on the
day preceding the election, or once the week preceding the
election if the newspaper is a weekly.

The official may make arrangements with news reporters
which permit prompt reporting of election results but which do
not interfere with the timely and lawful completion of counting
procedures.

Sec. 92.

Minnesota Statutes 2004, section 206.90,
subdivision 1, is amended to read:

Subdivision 1.

Definition.

For the purposes of this
section, "optical scan voting system" means an electronic voting
system approved for use under sections 206.80 to 206.81 in which
the voter records votes by marking with a pencil or other
deleted text begin writing instrument deleted text end new text begin device, including an electronic ballot
marker,new text end a ballot on which the names of candidates, office
titles, party designation in a partisan primary or election, and
a statement of any question accompanied by the words "Yes" and
"No" are printed.

Sec. 93.

Minnesota Statutes 2004, section 206.90,
subdivision 4, is amended to read:

Subd. 4.

Absentee voting.

An optical scan voting system
may be used for absentee voting. deleted text begin The county auditor may supply
an appropriate marking instrument to the voter along with the
ballot.
deleted text end

Sec. 94.

Minnesota Statutes 2004, section 206.90,
subdivision 5, is amended to read:

Subd. 5.

Instruction of judges, voters.

In instructing
judges and voters under section 206.84, subdivision 1, officials
in charge of election precincts using optical scan voting
systems shall include instruction on the proper mark for
recording votes on ballot cards marked with a pencil or other
writing instrument and the insertion by the voter of the ballot
card into automatic tabulating equipment that examines and
counts votes as the ballot card is deposited into the ballot box.

new text begin Officials shall include instruction on the insertion by the
voter of the ballot card into an electronic ballot marker that
can examine votes before the ballot card is deposited into the
ballot box.
new text end

Sec. 95.

Minnesota Statutes 2004, section 206.90,
subdivision 6, is amended to read:

Subd. 6.

Ballots.

In precincts using optical scan voting
systems, a single ballot card on which all ballot information is
included must be printed in black ink on white colored material
except that marks not to be read by the automatic tabulating
equipment may be printed in another color ink.

On the front of the ballot must be printed the words
"Official Ballot" and the date of the election and lines for the
initials of at least two election judges.

When optical scan ballots are used, the offices to be
elected must appear in the following order: federal offices;
state legislative offices; constitutional offices; proposed
constitutional amendments; county offices and questions;
municipal offices and questions; school district offices and
questions; special district offices and questions; and judicial
offices.

On optical scan ballots, the names of candidates and the
words "yes" and "no" for ballot questions must be printed as
close to their corresponding vote targets as possible.

The line on an optical scan ballot for write-in votes must
contain the words "write-in, if any."

If a primary ballot contains both a partisan ballot and a
nonpartisan ballot, the instructions to voters must include a
statement that reads substantially as follows: "THIS BALLOT
CARD CONTAINS A PARTISAN BALLOT AND A NONPARTISAN BALLOT. ON
THE PARTISAN BALLOT YOU ARE PERMITTED TO VOTE FOR CANDIDATES OF
ONE POLITICAL PARTY ONLY." If a primary ballot contains
political party columns on both sides of the ballot, the
instructions to voters must include a statement that reads
substantially as follows: "ADDITIONAL POLITICAL PARTIES ARE
PRINTED ON THE OTHER SIDE OF THIS BALLOT. VOTE FOR ONE
POLITICAL PARTY ONLY." At the bottom of each political party
column on the primary ballot, the ballot must contain a
statement that reads substantially as follows: "CONTINUE VOTING
ON THE NONPARTISAN BALLOT." The instructions in section
204D.08, subdivision 4, do not apply to optical scan partisan
primary ballots. new text begin Electronic ballot displays and audio ballot
readers must follow the order of offices and questions on the
optical scan or paper ballot used in the same precinct, or the
sample ballot posted for that precinct.
new text end

Sec. 96.

Minnesota Statutes 2004, section 206.90,
subdivision 8, is amended to read:

Subd. 8.

Duties of election officials.

The official in
charge of elections in each municipality where an optical scan
voting system is used shall have new text begin the electronic ballot marker
that examines and marks votes on ballot cards or the machine
that securely transmits a ballot to the optical scan machine in
the precinct and new text end the automatic tabulating equipment that
examines and counts votes as ballot cards are deposited into
ballot boxes put in order, set, adjusted, and made ready for
voting when delivered to the election precincts.

Sec. 97.

Minnesota Statutes 2004, section 206.90,
subdivision 9, is amended to read:

Subd. 9.

Spoiled ballot cards.

Automatic tabulating
equipment new text begin and electronic ballot markers must be new text end capable of
examining a ballot card for defects and returning it to the
voter before it is counted and deposited into the ballot box new text begin and
new text end must be programmed to return as a spoiled ballot a ballot card
with votes for an office or question which exceed the number
which the voter is entitled to cast and at a primary a ballot
card with votes for candidates of more than one party.

Sec. 98.

Minnesota Statutes 2004, section 208.03, is
amended to read:

208.03 NOMINATION OF PRESIDENTIAL ELECTORS.

Presidential electors for the major political parties of
this state shall be nominated by delegate conventions called and
held under the supervision of the respective state central
committees of the parties of this state. On or before primary
election day the chair of the major political party shall
certify to the secretary of state the names of the persons
nominated as presidential electorsnew text begin , the names of eight alternate
presidential electors,new text end and the names of the party candidates for
president and vice-president.

Sec. 99.

Minnesota Statutes 2004, section 208.04,
subdivision 1, is amended to read:

Subdivision 1.

Form of presidential ballots.

When
presidential electors new text begin and alternates new text end are to be voted for, a vote
cast for the party candidates for president and vice-president
shall be deemed a vote for that party's electors new text begin and alternates
new text end as filed with the secretary of state. The secretary of state
shall certify the names of all duly nominated presidential and
vice-presidential candidates to the county auditors of the
counties of the state. Each county auditor, subject to the
rules of the secretary of state, shall cause the names of the
candidates of each major political party and the candidates
nominated by petition to be printed in capital letters, set in
type of the same size and style as for candidates on the state
white ballot, before the party designation. To the left of, and
on the same line with the names of the candidates for president
and vice-president, near the margin, shall be placed a square or
box, in which the voters may indicate their choice by marking an
"X."

The form for the presidential ballot and the relative
position of the several candidates shall be determined by the
rules applicable to other state officers. The state ballot,
with the required heading, shall be printed on the same piece of
paper and shall be below the presidential ballot with a blank
space between one inch in width.

Sec. 100.

Minnesota Statutes 2004, section 208.05, is
amended to read:

208.05 STATE CANVASSING BOARD.

The State Canvassing Board at its meeting on the second
Tuesday after each state general election shall open and canvass
the returns made to the secretary of state for presidential
electors new text begin and alternatesnew text end , prepare a statement of the number of
votes cast for the persons receiving votes for these offices,
and declare the person or persons receiving the highest number
of votes for each office duly elected. When it appears that
more than the number of persons to be elected as presidential
electors new text begin or alternates new text end have the highest and an equal number of
votes, the secretary of state, in the presence of the board
shall decide by lot which of the persons shall be declared
elected. The governor shall transmit to each person declared
elected a certificate of election, signed by the governor,
sealed with the state seal, and countersigned by the secretary
of state.

Sec. 101.

Minnesota Statutes 2004, section 208.06, is
amended to read:

208.06 ELECTORS TO MEET AT CAPITOL; FILLING OF VACANCIES.

The presidential electors new text begin and alternate presidential
electorsnew text end , before 12:00 M. on the day before that fixed by
Congress for the electors to vote for president and
vice-president of the United States, shall notify the governor
that they are at the State Capitol and ready at the proper time
to fulfill their duties as electors. The governor shall deliver
to the electors present a certificate of the names of all the
electors. If any elector named therein fails to appear before
9:00 a.m. on the day, and at the place, fixed for voting for
president and vice-president of the United States, new text begin an alternate,
chosen from among the alternates by lot, shall be appointed to
act for that elector. If more than eight alternates are
necessary,new text end the electors present shall, in the presence of the
governor, immediately elect by ballot a person to fill the
vacancy. If more than the number of persons required have the
highest and an equal number of votes, the governor, in the
presence of the electors attending, shall decide by lot which of
those persons shall be elected.

Sec. 102.

Minnesota Statutes 2004, section 208.07, is
amended to read:

208.07 CERTIFICATE OF ELECTORS.

Immediately after the vacancies have been filled, the
original electors new text begin and alternates new text end present shall certify to the
governor the names of the persons elected to complete their
number, and the governor shall at once cause written notice to
be given to each person elected to fill a vacancy. The persons
so chosen shall be presidential electors and shall meet and act
with the other electors.

Sec. 103.

Minnesota Statutes 2004, section 208.08, is
amended to read:

208.08 ELECTORS TO MEET AT STATE CAPITOL.

The originalnew text begin , alternate,new text end and substituted presidential
electors, at 12:00 M., shall meet in the executive chamber at
the State Capitol and shall perform all the duties imposed upon
them as electors by the Constitution and laws of the United
States and this state.

new text begin Each elector, as a condition of having been chosen under
the name of the party of a presidential and a vice-presidential
candidate, is obligated to vote for those candidates. The
elector shall speak aloud or affirm in a nonverbal manner the
name of the candidate for president and for vice-president for
whom the elector is voting and then confirm that vote by written
public ballot.
new text end

new text begin If an elector fails to cast a ballot for the presidential
or vice-presidential candidate of the party under whose name the
elector was chosen, the elector's vote or abstention is
invalidated and an alternate presidential elector, chosen by lot
from among the alternates, shall cast a ballot in the name of
the elector for the presidential and vice-presidential candidate
of the party under whose name the elector was chosen. The
invalidation of an elector's vote or abstention on the ballot
for president or vice-president does not apply if the
presidential candidate under whose party's name the elector was
chosen has without condition released the elector or has died or
become mentally disabled.
new text end

Sec. 104.

Minnesota Statutes 2004, section 211B.01,
subdivision 3, is amended to read:

Subd. 3.

Candidate.

"Candidate" means an individual who
seeks nomination or election to a deleted text begin federal,deleted text end statewide,
legislative, judicial, or local office including special
districts, school districts, towns, home rule charter and
statutory cities, and countiesdeleted text begin , except candidates for president
and vice-president of the United Statesdeleted text end .

Sec. 105.

Minnesota Statutes 2004, section 358.11, is
amended to read:

358.11 OATHS, WHERE FILED.

Except as otherwise provided by law, the oath required to
be taken and subscribed by any person shall be filed as follows:

(1) if that of an officer of the state, whether elective or
appointive, new text begin executive, legislative, or judicial,new text end with the
secretary of state;

(2) if of a county officer, or an officer chosen within or
for any county, with the county auditor;

(3) if of a city officer, with the clerk or recorder of the
municipality;

(4) if of a town officer, with the town clerk;

(5) if of a school district officer, with the clerk of the
district;

(6) if of a person appointed by, or made responsible to, a
court in any action or proceeding therein, with the court
administrator of such court;

(7) if that of a person appointed by any state, county, or
other officer for a special service in connection with official
duties, with such officer.

If the person taking such oath be also required to give
bond, the oath shall be attached to or endorsed upon such bond
and filed therewith, in lieu of other filing.

Sec. 106.

Minnesota Statutes 2004, section 447.32,
subdivision 4, is amended to read:

Subd. 4.

Candidates; ballots; certifying election.

A
person who wants to be a candidate for the hospital board shall
file an affidavit of candidacy for the election either as member
at large or as a member representing the city or town where the
candidate resides. The affidavit of candidacy must be filed
with the city or town clerk not more than deleted text begin ten weeks deleted text end new text begin 70 days new text end nor
less than deleted text begin eight weeks deleted text end new text begin 56 days new text end before the new text begin first new text end Tuesday after the
deleted text begin second deleted text end new text begin first new text end Monday in deleted text begin September deleted text end new text begin November new text end of the year in which
the general election is held. The city or town clerk must
forward the affidavits of candidacy to the clerk of the hospital
district or, for the first election, the clerk of the most
populous city or town immediately after the last day of the
filing period. A candidate may withdraw from the election by
filing an affidavit of withdrawal with the clerk of the district
no later than 5:00 p.m. two days after the last day to file
affidavits of candidacy.

Voting must be by secret ballot. The clerk shall prepare,
at the expense of the district, necessary ballots for the
election of officers. Ballots must be printed on tan paper and
prepared as provided in the rules of the secretary of state.
The ballots must be marked and initialed by at least two judges
as official ballots and used exclusively at the election. Any
proposition to be voted on may be printed on the ballot provided
for the election of officers. The hospital board may also
authorize the use of voting systems subject to chapter 206.
Enough election judges may be appointed to receive the votes at
each polling place. The election judges shall act as clerks of
election, count the ballots cast, and submit them to the board
for canvass.

After canvassing the election, the board shall issue a
certificate of election to the candidate who received the
largest number of votes cast for each office. The clerk shall
deliver the certificate to the person entitled to it in person
or by certified mail. Each person certified shall file an
acceptance and oath of office in writing with the clerk within
30 days after the date of delivery or mailing of the
certificate. The board may fill any office as provided in
subdivision 1 if the person elected fails to qualify within 30
days, but qualification is effective if made before the board
acts to fill the vacancy.

Sec. 107. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Assistive voting equipment; operating
costs. new text end

new text begin (a) $25,000,000 is appropriated from the Help America
Vote Act account to the secretary of state for grants to
counties to purchase electronic voting systems equipped for
individuals with disabilities that meet the requirements of
section 301(a) of the Help America Vote Act, Public Law 107-252,
and Minnesota Statutes, sections 206.80, and 206.57, subdivision
5, and have been certified by the secretary of state under
Minnesota Statutes, section 206.57. The secretary of state
shall make a grant to each county in the amount of $6,100 times
the number of precincts in the county as certified by the
county, which must not be more than the number of precincts used
by the county in the state general election of 2004; plus $6,100
to purchase an electronic voting system to be used by the county
auditor for absentee and mail balloting, until the $25,000,000
is exhausted. These funds may be used either for the purchase
of ballot marking equipment for persons with disabilities and
other voters, or assistive voting machines that combine voting
methods used for persons with disabilities with precinct-based
optical scan voting machines. Any unused funds must be set
aside in a segregated account for future purchases of voting
equipment complying with the Help America Vote Act and Minnesota
law.
new text end

new text begin (b)(1) For the purposes of this paragraph, "operating
costs" include actual county and municipal costs for hardware
maintenance, election day technical support, software licensing,
system programming, voting system testing, training of county or
municipal staff in the use of the assistive voting system,
transportation of the assistive voting systems to and from the
polling places, and storage of the assistive voting systems
between elections.
new text end

new text begin (2) $2,500,000 is appropriated to the secretary of state
for grants to counties to defray the operating costs of the
assistive voting equipment. Each county may submit a request
for no more than $600 per polling place per year until the
appropriation is exhausted.
new text end

new text begin Subd. 2. new text end

new text begin Optic scan equipment. new text end

new text begin $6,000,000 is
appropriated from the Help America Vote Act account to the
secretary of state for grants to counties to purchase optical
scan voting equipment. Counties are eligible for these funds to
the extent that they decide to purchase ballot marking machines
and as a result do not have sufficient federal funds remaining
to also purchase a compatible precinct-based optical scan
machine or central count machine. These grants will be
allocated to counties at a rate of $3,000 per eligible precinct
until the appropriation is exhausted with priority in the
payment of grants to be given to counties currently using hand
and central count voting systems and counties using
precinct-count optical scan voting systems incompatible with
assistive voting systems or ballot marking machines.
new text end

new text begin Subd. 3. new text end

new text begin Secretary of state election
administration. new text end

new text begin $5,000,000 is appropriated from the Help
America Vote Act account to the secretary of state for further
development of the statewide voter registration system and for
training of local election officials, education of the public,
and other election administration improvements permitted by the
Help America Vote Act.
new text end

new text begin Subd. 4.new text end

new text begin Surplus voting equipment to be made
available.new text end

new text begin (a) If any county or municipality purchases or
receives new voting system equipment under this section, it must
make the equipment being replaced, if any, available on a
first-come, first-served basis at no charge for transfer to any
other county or municipality which has not previously used that
type or model of equipment. A county receiving equipment under
this subdivision must also make any equipment being replaced
similarly available to any other county or municipality.
new text end

new text begin (b) The secretary of state shall establish, for information
only, a page on its Web site on which counties making equipment
available pursuant to this subdivision must post the basic
specifications of the equipment along with contact information
for the staff person in the county or municipality responsible
for the equipment. All transfer transactions are strictly
between and among the counties and municipalities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 108. new text begin FEDERAL FUNDS FOR ACCESS BY DISABLED
INDIVIDUALS.
new text end

new text begin The secretary of state is authorized to apply for funds
pursuant to sections 261 to 265 of the Help America Vote Act,
Public Law 107-252, to ensure access for individuals with
disabilities. No further appropriation by the legislature is
required for the receipt of those funds from the federal
Department of Health and Human Services or for the distribution
to local units of government of those funds by the secretary of
state for that purpose, notwithstanding contrary provisions in
Laws 2003, First Special Session chapter 7, section 1.
new text end

Sec. 109. new text begin LOCAL EQUIPMENT PLANS.
new text end

new text begin (a) The county auditor shall convene a working group of all
city and town election officials in each county to create a
local equipment plan. The working group must continue to meet
until the plan is completed, which must be no later than
September 15, 2005; or 45 days after state certification of
assistive voting systems, whichever is later. The plan must:
new text end

new text begin (1) contain procedures to implement voting systems as
defined in Minnesota Statutes, section 206.80 in each polling
location;
new text end

new text begin (2) define who is responsible for any capital or operating
costs related to election equipment not covered by federal money
from the Help America Vote Act account; and
new text end

new text begin (3) outline how the federal money from the Help America
Vote Act account will be spent.
new text end

new text begin (b) A county plan must provide funding to purchase either
precinct-based optical scan voting equipment, or assistive
voting machines that combine voting methods used for persons
with disabilities with precinct-based optical scan voting
machines for any precinct whose city or town requests it, if the
requesting city or town agrees with the county on who will be
responsible for operating and replacement costs related to the
use of the precinct-based equipment.
new text end

new text begin (c) The plan must be submitted to the secretary of state
for review and comment. The county board of commissioners must
adopt the local equipment plan after a public hearing. Money
from the Help America Vote Act account may not be expended until
the plan is adopted. The county auditor shall file the adopted
local equipment plan with the secretary of state.
new text end

new text begin (d) To receive a grant under this section, the county must
apply to the secretary of state on forms prescribed by the
secretary of state and must set forth how the grant money will
be spent pursuant to the plan. A county may submit more than
one grant application, so long as the appropriation remains
available and the total amount granted to the county does not
exceed the county's allocation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 110. new text begin REPORT.
new text end

new text begin Each county receiving a grant under this article must
report to the secretary of state by March 15, 2006, the amount
spent for the purchase of each kind of electronic voting system
and for operating costs of the systems purchased. The secretary
of state shall compile this information and report it to the
legislature by April 15, 2006.
new text end

Sec. 111. new text begin RANDOM AUDITS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 10A.02,
subdivision 9, the Campaign Finance and Public Disclosure Board
must perform only random inspections of material filed with the
board during the biennium ending June 30, 2007.
new text end

Sec. 112. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 204B.22, subdivision 2;
and 204C.50, subdivision 7, are repealed.
new text end

new text begin Minnesota Rules, parts 4501.0300, subparts 1 and 4;
4501.0500, subpart 4; 4501.0600; 4503.0200, subpart 4;
4503.0300, subpart 2; 4503.0400, subpart 2; 4503.0500, subpart
9; and 4503.0800, subpart 1, are repealed.
new text end

ARTICLE 10

PERIODIC STATE AND LOCAL ELECTION DATES

Section 1.

new text begin [204D.035] PERIODIC ELECTION DAY.
new text end

new text begin Subdivision 1. new text end

new text begin Short title. new text end

new text begin This section may be referred
to as the "Periodic Election Day Act of 2005."
new text end

new text begin Subd. 2. new text end

new text begin Elections covered. new text end

new text begin This section applies to all
state, county, municipal, school district, and any other
political subdivision elections held in the state of Minnesota,
and elections on ballot questions, except for (1) elections held
to fill a vacancy in office and required by statute to be held
sooner than the next day designated in subdivision 3, or (2)
elections conducted by mail.
new text end

new text begin Subd. 3. new text end

new text begin Elections on designated days. new text end

new text begin (a)
Notwithstanding other law to the contrary, elections subject to
subdivision 2 may be held only on the following days:
new text end

new text begin (1) the fourth Tuesday in January;
new text end

new text begin (2) the second Tuesday in March;
new text end

new text begin (3) the third Tuesday in May;
new text end

new text begin (4) the first Tuesday after the second Monday in September;
and
new text end

new text begin (5) the first Tuesday after the first Monday in November.
new text end

new text begin (b) The time period in which a special election must be
conducted under any other law or charter provision must be
extended to conform to the requirements of this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Primary date if not specified. new text end

new text begin If other law
provides for a primary to take place for a particular office but
does not specify the date of the primary, the primary may be
held on one of the days specified in subdivision 3, paragraph
(a), clauses (1) to (4). The general election for the office
must be held on the date listed in subdivision 3 that
immediately follows the date chosen for the primary.
new text end

new text begin Subd. 5. new text end

new text begin Election times and polling places. new text end

new text begin An election
held in a jurisdiction on one of the days specified in
subdivision 3 must be held during the hours determined under
section 204C.05. The governing body of the municipality must
set the polling place locations to be used for each precinct in
all elections in any calendar year before the start of that
calendar year.
new text end

new text begin Subd. 6. new text end

new text begin Applicable laws. new text end

new text begin Except as otherwise provided
by this section, Minnesota election law remains applicable to
elections held on any of the days listed in subdivision 3.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective January 1, 2006.
new text end

ARTICLE 11

CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2004, section 123B.63,
subdivision 3, is amended to read:

Subd. 3.

Capital project levy referendum.

A district may
levy the local tax rate approved by a majority of the electors
voting on the question to provide funds for an approved
project. The election must take place no more than five years
before the estimated date of commencement of the project. The
referendum must be held on a date deleted text begin set by the board deleted text end new text begin specified in
section 204D.035, subdivision 3new text end . A referendum for a project not
receiving a positive review and comment by the commissioner
under section 123B.71 must be approved by at least 60 percent of
the voters at the election. The referendum may be called by the
school board and may be held:

(1) separately, before an election for the issuance of
obligations for the project under chapter 475; or

(2) in conjunction with an election for the issuance of
obligations for the project under chapter 475; or

(3) notwithstanding section 475.59, as a conjunctive
question authorizing both the capital project levy and the
issuance of obligations for the project under chapter 475. Any
obligations authorized for a project may be issued within five
years of the date of the election.

The ballot must provide a general description of the
proposed project, state the estimated total cost of the project,
state whether the project has received a positive or negative
review and comment from the commissioner, state the maximum
amount of the capital project levy as a percentage of net tax
capacity, state the amount that will be raised by that local tax
rate in the first year it is to be levied, and state the maximum
number of years that the levy authorization will apply.

The ballot must contain a textual portion with the
information required in this section and a question stating
substantially the following:

"Shall the capital project levy proposed by the board of
.......... School District No. .......... be approved?"

If approved, the amount provided by the approved local tax
rate applied to the net tax capacity for the year preceding the
year the levy is certified may be certified for the number of
years approved.

In the event a conjunctive question proposes to authorize
both the capital project levy and the issuance of obligations
for the project, appropriate language authorizing the issuance
of obligations must also be included in the question.

The district must notify the commissioner of the results of
the referendum.

Sec. 2.

Minnesota Statutes 2004, section 126C.17,
subdivision 11, is amended to read:

Subd. 11.

Referendum date.

(a) Except for a referendum
held under paragraph (b), any referendum under this section held
on a day other than the first Tuesday after the first Monday in
November must be conducted by mail in accordance with section
204B.46. Notwithstanding subdivision 9, paragraph (b), to the
contrary, in the case of a referendum conducted by mail under
this paragraph, the notice required by subdivision 9, paragraph
(b), must be prepared and delivered by first-class mail at least
20 days before the referendum.

(b) In addition to the referenda allowed in subdivision 9,
clause (a), the commissioner may grant authority to a district
to hold a referendum on a different day if the district is in
statutory operating debt and has an approved plan or has
received an extension from the department to file a plan to
eliminate the statutory operating debt. new text begin A referendum must be
held on a date specified in section 204D.035, subdivision 3.
new text end

(c) The commissioner must approve, deny, or modify each
district's request for a referendum levy on a different day
within 60 days of receiving the request from a district.

Sec. 3.

Minnesota Statutes 2004, section 204C.05, is
amended by adding a subdivision to read:

new text begin Subd. 1c. new text end

new text begin Elections; municipalities and school
districts. new text end

new text begin The governing body of a municipality or school
district may, by resolution, designate the hours during which
the polling places will remain open for voting at the next
succeeding and all later municipal or school district elections
that are not held at the same time as the state primary or state
general election. All polling places must be open at least
between the hours of 10:00 a.m. and 8:00 p.m. The resolution
remains in effect until revoked by the governing board or until
a petition from voters is filed under this subdivision. If a
petition requesting longer voting hours for any election is
signed by a number of voters equal to ten percent of the votes
cast in the last municipal or school district general election,
whichever applies, and filed with the appropriate municipal or
school district clerk no later than 30 days before an election,
the polling places for that election must open at 7:00 a.m. and
close at 8:00 p.m. The municipal or school district clerk must
give ten days published and posted notice of the change in hours
and notify the appropriate county auditors of the change.
new text end

Sec. 4.

Minnesota Statutes 2004, section 205.10,
subdivision 3, is amended to read:

Subd. 3.

Prohibition.

deleted text begin No deleted text end new text begin A new text end special election authorized
under subdivision 1 may be held deleted text begin within 40 days after the state
general election deleted text end new text begin only on one of the dates specified in section
204D.035, subdivision 3new text end .

Sec. 5.

new text begin [205.176] VOTING HOURS.
new text end

new text begin In all municipal elections the hours for voting must be
determined as provided in section 204C.05 except for an election
at which only township offices are to be elected.
new text end

Sec. 6.

Minnesota Statutes 2004, section 205A.05,
subdivision 1, is amended to read:

Subdivision 1.

Questions.

Special elections must be held
for a school district on a question on which the voters are
authorized by law to pass judgment. The school board may on its
own motion call a special election to vote on any matter
requiring approval of the voters of a district. Upon petition
of 50 or more voters of the school district or five percent of
the number of voters voting at the preceding regular school
district election, the school board shall by resolution call a
special election to vote on any matter requiring approval of the
voters of a district. A question is carried only with the
majority in its favor required by law. The election officials
for a special election are the same as for the most recent
school district general election unless changed according to
law. Otherwise, special elections must be conducted and the
returns made in the manner provided for the school district
general election. deleted text begin A special election may not be held during the
30 days before and the 30 days after the state primary, during
the 30 days before and the 40 days after the state general
election. In addition, a special election may not be held
during the 20 days before and the 20 days after any regularly
scheduled election of a municipality wholly or partially within
the school district.deleted text end new text begin A special election under this subdivision
must be held only on one of the dates specified in section
204D.035, subdivision 3.new text end Notwithstanding any other law to the
contrary, the time period in which a special election must be
conducted under any other law may be extended by the school
board to conform with the requirements of this subdivision.

Sec. 7.

new text begin [205A.095] HOURS FOR VOTING.
new text end

new text begin The hours for voting in school district elections must be
determined as provided in section 204C.05.
new text end

Sec. 8.

Minnesota Statutes 2004, section 373.40,
subdivision 2, is amended to read:

Subd. 2.

Application of election requirement.

(a) Bonds
issued by a county to finance capital improvements under an
approved capital improvement plan are not subject to the
election requirements of section 375.18 or 475.58. The bonds
must be approved by vote of at least three-fifths of the members
of the county board. In the case of a metropolitan county, the
bonds must be approved by vote of at least two-thirds of the
members of the county board.

(b) Before issuance of bonds qualifying under this section,
the county must publish a notice of its intention to issue the
bonds and the date and time of a hearing to obtain public
comment on the matter. The notice must be published in the
official newspaper of the county or in a newspaper of general
circulation in the county. The notice must be published at
least 14, but not more than 28, days before the date of the
hearing.

(c) A county may issue the bonds only upon obtaining the
approval of a majority of the voters voting on the question of
issuing the obligations, if a petition requesting a vote on the
issuance is signed by voters equal to five percent of the votes
cast in the county in the last general election and is filed
with the county auditor within 30 days after the public
hearing. The commissioner of revenue shall prepare a suggested
form of the question to be presented at the election. new text begin The
election may be held only on one of the dates specified in
section 204D.035, subdivision 3.
new text end

Sec. 9.

Minnesota Statutes 2004, section 375.20, is
amended to read:

375.20 BALLOT QUESTIONS.

If the county board may do an act, incur a debt,
appropriate money for a purpose, or exercise any other power or
authority, only if authorized by a vote of the people, the
question may be submitted at a special or general election, by a
resolution specifying the matter or question to be voted upon.
If the question is to authorize the appropriation of money,
creation of a debt, or levy of a tax, it shall state the
amount. Notice of the election shall be given as in the case of
special elections. If the question submitted is adopted, the
board shall pass an appropriate resolution to carry it into
effect. In the election the form of the ballot shall be: "In
favor of (here state the substance of the resolution to be
submitted), Yes ...... No......," with a square opposite each
of the words "yes" and "no," in one of which the voter shall
mark an "X" to indicate a choice. The county board may call a
special county election upon a question to be held deleted text begin within 60
days deleted text end new text begin on any date specified in section 204D.035, subdivision 3,
new text end after a resolution to that effect is adopted by the county
board. Upon the adoption of the resolution the county auditor
shall post and publish notices of the election, as required by
section 204D.22, subdivisions 2 and 3. The election shall be
conducted and the returns canvassed in the manner prescribed by
sections 204D.20 to 204D.27, so far as practicable.

Sec. 10.

Minnesota Statutes 2004, section 458.40, is
amended to read:

458.40 MUST VOTE TO ISSUE BONDS IF CHARTER SAYS SO.

If a charter adopted under the Minnesota Constitution,
article IV, section 36, article XI, section 4, or article XII,
section 5, has a provision that requires the question of the
issuance of bonds to be submitted to the electors, the provision
prevails over sections 458.36 to 458.40. new text begin The question must be
submitted to voters on one of the dates specified in section
204D.035, subdivision 3, notwithstanding any contrary provision
in the charter regarding the date of submission.
new text end

Sec. 11.

Minnesota Statutes 2004, section 465.82,
subdivision 2, is amended to read:

Subd. 2.

Contents of plan.

The plan must state:

(1) the specific cooperative activities the units will
engage in during the first two years of the venture;

(2) the steps to be taken to effect the merger of the
governmental units, with completion no later than four years
after the process begins;

(3) the steps by which a single governing body will be
created or, when the entire territory of a unit will be
apportioned between or among two or more units contiguous to the
unit that is to be apportioned, the steps to be taken by the
governing bodies of the remaining units to provide for
representation of the residents of the apportioned unit;

(4) changes in services provided, facilities used, and
administrative operations and staffing required to effect the
preliminary cooperative activities and the final merger, and a
two-, five-, and ten-year projection of expenditures for each
unit if it combined and if it remained separate;

(5) treatment of employees of the merging governmental
units, specifically including provisions for reassigning
employees, dealing with exclusive representatives, and providing
financial incentives to encourage early retirements;

(6) financial arrangements for the merger, specifically
including responsibility for debt service on outstanding
obligations of the merging units;

(7) one- and two-year impact analyses, prepared by the
granting state agency at the request of the local government
unit, of major state aid revenues received for each unit if it
combined and if it remained separate, including an impact
analysis, prepared by the Department of Revenue, of any property
tax revenue implications associated with tax increment financing
districts and fiscal disparities under chapter 276A or 473F
resulting from the merger;

(8) procedures for a referendum to be held new text begin on a date
specified in section 204D.035, subdivision 3,new text end before the
proposed combination to approve combining the local government
units, specifically stating whether a majority of those voting
in each district proposed for combination or a majority of those
voting on the question in the entire area proposed for
combination is needed to pass the referendum; and

(9) a time schedule for implementation.

Notwithstanding clause (3) or any other law to the
contrary, all current members of the governing bodies of the
local government units that propose to combine under sections
465.81 to 465.86 may serve on the initial governing body of the
combined unit until a gradual reduction in membership is
achieved by foregoing election of new members when terms expire
until the number permitted by other law is reached.

Sec. 12.

Minnesota Statutes 2004, section 465.84, is
amended to read:

465.84 REFERENDUM.

During the first or second year of cooperation, a
referendum on the question of combination must be conducted.
The referendum must be on a date new text begin specified in section 204D.035,
subdivision 3, and new text end called by the governing bodies of the units
that propose to combine. The referendum must be conducted
according to the Minnesota Election Law, as defined in section
200.01. If the referendum fails, the same question or a
modified question may be submitted the following year. If the
referendum fails again, the same question may not be submitted.
Referendums shall be conducted on the same date in all local
government units.

Sec. 13.

Minnesota Statutes 2004, section 469.053,
subdivision 5, is amended to read:

Subd. 5.

Reverse referendum.

A city may increase its
levy for port authority purposes under subdivision 4 only as
provided in this subdivision. Its city council must first pass
a resolution stating the proposed amount of levy increase. The
city must then publish the resolution together with a notice of
public hearing on the resolution for two successive weeks in its
official newspaper or, if none exists, in a newspaper of general
circulation in the city. The hearing must be held two to four
weeks after the first publication. After the hearing, the city
council may decide to take no action or may adopt a resolution
authorizing the proposed increase or a lesser increase. A
resolution authorizing an increase must be published in the
city's official newspaper or, if none exists, in a newspaper of
general circulation in the city. The resolution is not
effective if a petition requesting a referendum on the
resolution is filed with the city clerk within 30 days of
publication of the resolution. The petition must be signed by
voters equaling five percent of the votes cast in the city in
the last general election. The resolution is effective if
approved by a majority of those voting on the question. The
commissioner of revenue shall prepare a suggested form of
referendum question. The referendum must be held at a special
or general election deleted text begin before October 1 deleted text end new text begin on a date specified in
section 204D.035, subdivision 3,new text end of the year for which the levy
increase is proposed.

Sec. 14.

Minnesota Statutes 2004, section 469.0724, is
amended to read:

469.0724 GENERAL OBLIGATION BONDS.

The port authority of Cannon Falls or Redwood Falls must
not proceed with the sale of general obligation tax supported
bonds until the city council by resolution approves the proposed
issuance. The resolution must be published in the official
newspaper. If, within 30 days after the publication, a petition
signed by voters equal in number to ten percent of the number of
voters at the last regular city election is filed with the city
clerk, the city and port authority must not issue the general
obligation tax supported bonds until the proposition has been
approved by a majority of the votes cast on the question at a
regular or special election new text begin held on one of the dates specified
in section 204D.035, subdivision 3new text end .

Sec. 15.

Minnesota Statutes 2004, section 469.190,
subdivision 5, is amended to read:

Subd. 5.

Reverse referendum.

If the county board passes
a resolution under subdivision 4 to impose the tax, the
resolution must be published for two successive weeks in a
newspaper of general circulation within the unorganized
territory, together with a notice fixing a date for a public
hearing on the proposed tax.

The hearing must be held not less than two weeks nor more
than four weeks after the first publication of the notice.
After the public hearing, the county board may determine to take
no further action, or may adopt a resolution authorizing the tax
as originally proposed or approving a lesser rate of tax. The
resolution must be published in a newspaper of general
circulation within the unorganized territory. The voters of the
unorganized territory may request a referendum on the proposed
tax by filing a petition with the county auditor within 30 days
after the resolution is published. The petition must be signed
by voters who reside in the unorganized territory. The number
of signatures must equal at least five percent of the number of
persons voting in the unorganized territory in the last general
election. If such a petition is timely filed, the resolution is
not effective until it has been submitted to the voters residing
in the unorganized territory at a general or special election
new text begin held on one of the dates specified in section 204D.035,
subdivision 3,new text end and a majority of votes cast on the question of
approving the resolution are in the affirmative. The
commissioner of revenue shall prepare a suggested form of
question to be presented at the referendum.

Sec. 16.

Minnesota Statutes 2004, section 475.521,
subdivision 2, is amended to read:

Subd. 2.

Election requirement.

(a) Bonds issued by a
city to finance capital improvements under an approved capital
improvements plan are not subject to the election requirements
of section 475.58. The bonds are subject to the net debt limits
under section 475.53. The bonds must be approved by an
affirmative vote of three-fifths of the members of a five-member
city council. In the case of a city council having more than
five members, the bonds must be approved by a vote of at least
two-thirds of the city council.

(b) Before the issuance of bonds qualifying under this
section, the city must publish a notice of its intention to
issue the bonds and the date and time of the hearing to obtain
public comment on the matter. The notice must be published in
the official newspaper of the city or in a newspaper of general
circulation in the city. Additionally, the notice may be posted
on the official Web site, if any, of the city. The notice must
be published at least 14 but not more than 28 days before the
date of the hearing.

(c) A city may issue the bonds only after obtaining the
approval of a majority of the voters voting on the question of
issuing the obligations, if a petition requesting a vote on the
issuance is signed by voters equal to five percent of the votes
cast in the city in the last general election and is filed with
the city clerk within 30 days after the public hearing. The
commissioner of revenue shall prepare a suggested form of the
question to be presented at the election. new text begin The election must be
held on one of the dates specified in section 204D.035,
subdivision 3.
new text end

Sec. 17.

Minnesota Statutes 2004, section 475.58,
subdivision 1, is amended to read:

Subdivision 1.

Approval by electors; exceptions.

Obligations authorized by law or charter may be issued by any
municipality upon obtaining the approval of a majority of the
electors voting new text begin at a special or general election held on one of
the dates specified in section 204D.035, subdivision 3,new text end on the
question of issuing the obligations, but an election shall not
be required to authorize obligations issued:

(1) to pay any unpaid judgment against the municipality;

(2) for refunding obligations;

(3) for an improvement or improvement program, which
obligation is payable wholly or partly from the proceeds of
special assessments levied upon property specially benefited by
the improvement or by an improvement within the improvement
program, or of taxes levied upon the increased value of property
within a district for the development of which the improvement
is undertaken, including obligations which are the general
obligations of the municipality, if the municipality is entitled
to reimbursement in whole or in part from the proceeds of such
special assessments or taxes and not less than 20 percent of the
cost of the improvement or the improvement program is to be
assessed against benefited property or is to be paid from the
proceeds of federal grant funds or a combination thereof, or is
estimated to be received from such taxes within the district;

(4) payable wholly from the income of revenue producing
conveniences;

(5) under the provisions of a home rule charter which
permits the issuance of obligations of the municipality without
election;

(6) under the provisions of a law which permits the
issuance of obligations of a municipality without an election;

(7) to fund pension or retirement fund liabilities pursuant
to section 475.52, subdivision 6;

(8) under a capital improvement plan under section 373.40;
and

(9) under sections 469.1813 to 469.1815 (property tax
abatement authority bonds), if the proceeds of the bonds are not
used for a purpose prohibited under section 469.176, subdivision
4g, paragraph (b).

Sec. 18.

Minnesota Statutes 2004, section 475.58,
subdivision 1a, is amended to read:

Subd. 1a.

Resubmission limitation.

If the electors do
not approve the issuing of obligations at an election required
by subdivision 1, the question of authorizing the obligations
for the same purpose and in the same amount may not be submitted
to the electors deleted text begin within a period of deleted text end new text begin until a special or general
election held on a date specified in section 204D.035,
subdivision 3, and not sooner than new text end 180 days from the date the
election was held. If the question of authorizing the
obligations for the same purpose and in the same amount is not
approved a second time it may not be submitted to the electors
within a period of one year after the second election.

Sec. 19.

Minnesota Statutes 2004, section 475.59, is
amended to read:

475.59 MANNER OF SUBMISSION; NOTICE.

When the governing body of a municipality resolves to issue
bonds for any purpose requiring the approval of the electors, it
shall provide for submission of the proposition of their
issuance at a general or special election new text begin held on a date
specified in section 204D.035, subdivision 3,new text end or new text begin at a new text end town or
new text begin common new text end school district meeting. Notice of such election or
meeting shall be given in the manner required by law and shall
state the maximum amount and the purpose of the proposed issue.
In any school district, the school board or board of education
may, according to its judgment and discretion, submit as a
single ballot question or as two or more separate questions in
the notice of election and ballots the proposition of their
issuance for any one or more of the following, stated
conjunctively or in the alternative: acquisition or enlargement
of sites, acquisition, betterment, erection, furnishing,
equipping of one or more new schoolhouses, remodeling,
repairing, improving, adding to, betterment, furnishing,
equipping of one or more existing schoolhouses. In any city,
town, or county, the governing body may, according to its
judgment and discretion, submit as a single ballot question or
as two or more separate questions in the notice of election and
ballots the proposition of their issuance, stated conjunctively
or in the alternative, for the acquisition, construction, or
improvement of any facilities at one or more locations.

Sec. 20. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 204C.05, subdivisions 1a
and 1b; 205.175; and 205A.09, are repealed.
new text end

Sec. 21. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective January 1, 2006. Section 17 is
effective for obligations authorized at an election held after
January 1, 2006.
new text end

HF 1481

Bill Text Versions

ARTICLE 1

STATE GOVERNMENT APPROPRIATIONS

Section 1. new text begin STATE GOVERNMENT APPROPRIATIONS.new text end

Sec. 2. LEGISLATURE

Subdivision 1.

Subd. 2.

Subd. 3.

Subd. 4.

Sec. 3. GOVERNOR AND LIEUTENANT GOVERNOR 3,497,000 3,496,000

Sec. 4. STATE AUDITOR 9,266,000 9,303,000

Sec. 5. ATTORNEY GENERAL 24,677,000 24,718,000

Sec. 6.

Sec. 7.

Sec. 8.

Sec. 9. ADMINISTRATIVE HEARINGS 7,714,000 7,620,000

Sec. 10. ADMINISTRATION

Subdivision 1.

Subd. 2.

Subd. 3.

Subd. 4.

Subd. 5.

Subd. 6.

Sec. 11.

Sec. 12. FINANCE

Subdivision 1.

Subd. 2.

Subd. 3.

Sec. 13.

Sec. 14. REVENUE

Subdivision 1.

Subd. 2.

Subd. 3.

Subd. 4.

Sec. 15. MILITARY AFFAIRS

Subdivision 1.

Subd. 2.

Subd. 3.

Subd. 4.

Sec. 16. VETERANS AFFAIRS 4,382,000 4,282,000

Sec. 17. VETERANS OF FOREIGN WARS 85,000 85,000

Sec. 18.

Sec. 19. DISABLED AMERICAN VETERANS 53,000 53,000

Sec. 20. GAMBLING CONTROL 2,800,000 2,800,000

Sec. 21. RACING COMMISSION 674,000 835,000

Sec. 22. STATE LOTTERY

Sec. 23. TORT CLAIMS 161,000 161,000

Sec. 24. MINNESOTA STATE RETIREMENT SYSTEM 1,176,000 1,205,000

Sec. 25. MINNEAPOLIS EMPLOYEES RETIREMENT FUND 8,065,000 8,065,000

Sec. 26. MINNEAPOLIS TEACHERS RETIREMENT FUND 15,800,000 15,800,000

Sec. 27. ST. PAUL TEACHERS RETIREMENT FUND 2,967,000 2,967,000

Sec. 28.

Sec. 29.

Sec. 30.

Sec. 31. SHARED SERVICES ENCOURAGED

Sec. 32.

Sec. 33. GENERAL CONTINGENT ACCOUNTS 600,000 500,000

Sec. 34. GRANTS

Sec. 35. RACING COMMISSION APPROPRIATION

ARTICLE 2

STATE GOVERNMENT OPERATIONS

Section 1.

3.011 SESSIONS.

Sec. 2.

3.012 LEGISLATIVE DAY.

Sec. 3.

new text begin [3.194] REVENUE FROM PUBLICATIONS; MEDIA PRODUCTIONS. new text end

Sec. 4.

new text begin [3.1941] PUBLIC INFORMATION. new text end

Sec. 5.

new text begin [3.306] MEETING TIMES. new text end

Sec. 6.

new text begin [3.3061] JOINT STANDING COMMITTEES. new text end

Sec. 7.

new text begin [3.3062] WIRELESS INTERNET. new text end

Sec. 8.

new text begin [4.48] FAITH-BASED INITIATIVES. new text end

Sec. 9.

new text begin [5.31] STATEWIDE VOTER REGISTRATION SYSTEM. new text end

Section 1. new text begin STATE GOVERNMENT APPROPRIATIONS.
new text end

Sec. 3. GOVERNOR AND
LIEUTENANT GOVERNOR 3,497,000 3,496,000

Sec. 17. VETERANS OF FOREIGN
WARS 85,000 85,000

Sec. 24. MINNESOTA STATE
RETIREMENT SYSTEM 1,176,000 1,205,000

Sec. 25. MINNEAPOLIS EMPLOYEES
RETIREMENT FUND 8,065,000 8,065,000

Sec. 26. MINNEAPOLIS TEACHERS
RETIREMENT FUND 15,800,000 15,800,000

Sec. 27. ST. PAUL TEACHERS
RETIREMENT FUND 2,967,000 2,967,000

Sec. 33. GENERAL CONTINGENT
ACCOUNTS 600,000 500,000

new text begin [3.194] REVENUE FROM PUBLICATIONS; MEDIA
PRODUCTIONS.
new text end

new text begin [3.1941] PUBLIC INFORMATION.
new text end

new text begin [3.306] MEETING TIMES.
new text end

new text begin [3.3061] JOINT STANDING COMMITTEES.
new text end

new text begin [3.3062] WIRELESS INTERNET.
new text end

new text begin [4.48] FAITH-BASED INITIATIVES.
new text end

new text begin [5.31] STATEWIDE VOTER REGISTRATION SYSTEM.
new text end

new text begin [6.80] RULE AND LAW WAIVER REQUESTS.
new text end

new text begin [8.065] PRIVATE ATTORNEY CONTRACTS.
new text end

new text begin [14.127] LEGISLATIVE APPROVAL REQUIRED.
new text end

15.054 PUBLIC EMPLOYEES NOT TO PURCHASE MERCHANDISE FROM
GOVERNMENTAL AGENCIES; EXCEPTIONS; PENALTY.

new text begin [15.445] NOTIFICATION OF CERTAIN CHANGES TO
PROFESSIONAL LICENSURE LAWS AND RULES.
new text end

new text begin [15.60] PUBLIC SAFETY OFFICERS; AMERICAN FLAG.
new text end

new text begin [15.701] SALARY DATA.
new text end

new text begin [15B.055] PARKING SPACES.
new text end