Journal of the House - 83rd Day - Wednesday, March 31, 2004

A quorum was present.

Gunther and Haas were excused.

Nelson, M., was excused until 9:20 p.m.

The Chief Clerk proceeded to read the Journal of the preceding day. Magnus moved that further reading of the Journal be suspended and that the Journal be approved as corrected by the Chief Clerk. The motion prevailed.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6286

REPORTS OF STANDING COMMITTEES

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

H. F. No. 2649, A bill for an act relating to insurance; requiring the commissioner of commerce to study and report on options to reduce motor vehicle insurance premiums for private transit companies and taxi services.

Reported the same back with the following amendments:

Page 1, line 9, after "force" insert "of up to 15 members,"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Rules and Legislative Administration.

The report was adopted.

Knoblach from the Committee on Ways and Means to which was referred:

H. F. No. 2684, A bill for an act relating to state government; appropriating money for the general legislative and administrative expenses of state government; modifying provisions related to state government operations; amending Minnesota Statutes 2002, sections 10A.31, subdivision 4; 16B.55, subdivision 3; 193.29, subdivision 3; 193.30; 193.31; Minnesota Statutes 2003 Supplement, sections 16A.11, subdivision 3; 192.501, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

STATE GOVERNMENT FINANCE

Section 1. [STATE GOVERNMENT APPROPRIATIONS.]

The dollar amounts shown in the columns marked "APPROPRIATIONS" are added to or, if shown in parentheses, are subtracted from the appropriations in Laws 2003, First Special Session chapter 1, article 1, and are appropriated from the general fund, or any other fund named, to the agencies and for the purposes specified in this article, to be available for the fiscal year indicated for each purpose. The figures "2004" and "2005" used in this article mean that the appropriation or appropriations listed under them are available for the fiscal years ending June 30, 2004, and June 30, 2005, respectively.

SUMMARY BY FUND

2004 2005 TOTAL

General $(456,000) $3,207,000 $2,751,000

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6287

APPROPRIATIONS

Available for the Year

Ending June 30

2004 2005

Sec. 2. LEGISLATURE

Subdivision 1. Total Appropriation -0- (152,000)

The per diem paid to legislators may not exceed $56 per day. Legislators may not be paid a housing allowance for more than six months in any one calendar year.

Subd. 2. Senate

$2,000,000 is canceled to the general fund from amounts previously carried forward under Minnesota Statutes, section 16A.281.

Subd. 3. House of Representatives

$2,000,000 is canceled to the general fund from amounts previously carried forward under Minnesota Statutes, section 16A.281.

Subd. 4. Legislative Coordinating Commission

-0- (152,000)

The reduction in this subdivision takes effect only if a bill is enacted in 2004 transferring duties related to actuarial services from the Legislative Commission on Pensions and Retirement to public pension funds.

Sec. 3. GOVERNOR AND LIEUTENANT GOVERNOR -0- (108,000)

Sec. 4. STATE AUDITOR -0- (249,000)

Sec. 5. ATTORNEY GENERAL -0- (677,000)

$2,000,000 of the amount carried forward from fiscal year 2003 to fiscal year 2004 is canceled to the general fund.

Sec. 6. SECRETARY OF STATE -0- (181,000)

Sec. 7. ADMINISTRATION -0- (432,000)

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6288

APPROPRIATIONS

Available for the Year

Ending June 30

2004 2005

Sec. 8. FINANCE (456,000) (456,000)

The commissioner of finance may use $40,000 of the general fund appropriation in Laws 2003, First Special Session chapter 1, article 1, section 28, to pay unemployment insurance and other shutdown costs related to the elimination of the Office of Ombudsman for Corrections. The funds remain available until June 30, 2005.

Sec. 9. EMPLOYEE RELATIONS -0- (186,000)

Sec. 10. REVENUE -0- (1,402,000)

Sec. 11. MILITARY AFFAIRS

Subdivision 1. Total Appropriation -0- 4,428,000

Subd. 2. Appropriation Reduction

-0- (222,000)

Subd. 3. Reenlistment Bonus Program

-0- 1,500,000

The appropriation in this subdivision is for a reenlistment bonus program as authorized by Minnesota Statutes, section 192.501, subdivision 1b. The appropriation for the reenlistment bonus program is available until expended.

Subd. 4. National Guard Youth Camp

-0- 50,000

The appropriation in this subdivision is to assist in the operation of the Minnesota National Guard Youth Camp at Camp Ripley. This appropriation is contingent on a dollar-for-dollar match from nonstate sources. This is a onetime appropriation.

Subd. 5. Tuition and Textbook Reimbursement Grant Program

-0- 3,100,000

The appropriation in this subdivision is in addition to funding provided by Laws 2003, First Special Session chapter 1, article 1, section 16, subdivision 4. This appropriation is available until expended.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6289

APPROPRIATIONS

Available for the Year

Ending June 30

2004 2005

Sec. 12. VETERANS AFFAIRS -0- (78,000)

Sec. 13. LOTTERY

Operating budget limits established in Minnesota Statutes, section 349A.10, Laws 2003, First Special Session chapter 1, article 1, section 23, or any amendment to Laws 2003, First Special Session chapter 1, article 1, section 23, adopted by the 2004 legislature, do not apply to new duties relating to lease of gaming machines assigned to the lottery by proposed Minnesota Statutes, section 349A.17 or 349A.20, or by other laws enacted in 2004.

Sec. 14. ADMINISTRATION; MOVING COSTS -0- 2,500,000

This appropriation is for relocation of state agencies as determined by the commissioner of administration.

Sec. 15. Minnesota Statutes 2002, section 10A.31, subdivision 4, is amended to read:

Subd. 4. [APPROPRIATION.] ~~(a)~~ The amounts designated by individuals for the state elections campaign fund, less three percent, are appropriated from the general fund, 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 general fund for administrative costs.

~~(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.~~

Sec. 16. Minnesota Statutes 2002, 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

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6290

(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.

(c) The following data received, prepared, used, or retained by the state board in connection with investments authorized by paragraph (a) is public:

(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;

(2) the state board commitment amount, if any;

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

(4) the market value of the investment by the state board;

(5) the state board's internal rate of return; and

(6) the age of the investment in years.

All other financial or proprietary data received, prepared, used, or retained by the state board in connection with investments authorized by paragraph (a), or in which the state board has considered an investment, that is considered nonpublic by the legal entity or portfolio companies or other entities providing the data is nonpublic data under section 13.02, subdivision 9.

Sec. 17. Minnesota Statutes 2002, section 13.635, is amended by adding a subdivision to read:

Subd. 1a. [STATE BOARD OF INVESTMENT.] Certain government data of the State Board of Investment related to venture capital investments are classified under section 11A.24, subdivision 6.

Sec. 18. Minnesota Statutes 2003 Supplement, section 16A.11, subdivision 3, is amended to read:

Subd. 3. [PART TWO: DETAILED BUDGET.] (a) Part two of the budget, the detailed budget estimates both of expenditures and revenues, must contain any statements on the financial plan which the governor believes desirable or which may be required by the legislature. The detailed estimates shall include the governor's budget arranged in tabular form.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6291

(b) Tables listing expenditures for the next biennium must show the appropriation base for each year as well as the governor's total recommendation for that year for each expenditure line. The appropriation base is the amount appropriated for the second year of the current biennium, adjusted in accordance with any provisions of law that specify changes to the base. For a statutory appropriation not specifying a dollar amount or for an appropriation for a forecasted program, the appropriation base is the amount estimated to fulfill the appropriation according to the most recent forecast prepared by the commissioner of finance pursuant to section 16A.103.

(c) The detailed estimates must include a separate line listing the total cost of professional and technical service contracts for the prior biennium and the projected costs of those contracts for the current and upcoming biennium. They must also include a summary of the personnel employed by the agency, reflected as full-time equivalent positions.

(d) The detailed estimates for internal service funds must include the number of full-time equivalents by program; detail on any loans from the general fund, including dollar amounts by program; proposed investments in technology or equipment of $100,000 or more; an explanation of any operating losses or increases in retained earnings; and a history of the rates that have been charged, with an explanation of any rate changes and the impact of the rate changes on affected agencies.

Sec. 19. Minnesota Statutes 2002, section 16A.103, subdivision 1a, is amended to read:

Subd. 1a. [FORECAST PARAMETERS.] The forecast must assume the continuation of current laws and reasonable estimates of projected growth in the national and state economies and affected populations. Revenue must be estimated for all sources provided for in current law. Expenditures must be estimated for all obligations imposed by law and those projected to occur as a result of variables outside the control of the legislature. Expenditure estimates must not include an allowance for inflation, but the forecast must include a separate discussion of the cost of applying inflation to expenditures.

Sec. 20. Minnesota Statutes 2002, section 16A.53, subdivision 1, is amended to read:

Subdivision 1. [~~FUND CREATES~~ FUNDS AND ACCOUNTS CREATED BY LAW.] When a law creates a fund or account in the treasury into which are deposited certain revenues and out of which certain expenditures are appropriated, the commissioner may consider the creation of the fund or account as the creation of a bookkeeping account in the state's ~~general books of account~~ accounting system so as to reflect the revenues deposited in the treasury and credited to the bookkeeping account and the expenditures appropriated from the treasury and charged to the bookkeeping account. The commissioner must organize these bookkeeping accounts into funds in accordance with generally accepted accounting principles.

Sec. 21. Minnesota Statutes 2002, section 16A.53, is amended by adding a subdivision to read:

Subd. 3. [COMMISSIONER TO MANAGE FUNDS AND ACCOUNTS.] (a) As necessary, the commissioner may eliminate an account that is no longer needed for the purposes specified for it in law.

(b) The commissioner must eliminate an account that meets the criteria in paragraph (c) unless the commissioner determines that the account is necessary for efficient fiscal operation.

(1) receipts to the account and transfers into the account average less than $1,000 per year in the past four years;

(2) year-end balances in the past four years average less than $1,000 per year; and

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6292

(3) the account has been in existence for at least four years.

(d) Any balances in an eliminated account must be transferred to the general fund unless some other disposition is specified in law. If the commissioner eliminates an account established in law, the commissioner must notify the legislature, in a report to the appropriate finance committees, of the elimination.

Sec. 22. Minnesota Statutes 2002, section 16A.53, is amended by adding a subdivision to read:

Subd. 4. [REPORT.] Each agency that manages accounts within a fund must report at least annually to the appropriate finance committees of the legislature on the number, purpose, and recent financial activity in those accounts. The commissioner must establish uniform criteria and timing for the reports.

Sec. 23. Minnesota Statutes 2002, section 16A.531, is amended by adding a subdivision to read:

Subd. 4. [MISCELLANEOUS SPECIAL REVENUE FUND.] (a) A miscellaneous special revenue fund is created in the state treasury. This fund is for the deposit of receipts and other revenues that are not placed in any other fund by law or under section 16A.53.

(b) One-third of the accounts in the miscellaneous special revenue fund are terminated on June 30, 2007, another one-third of the accounts in the miscellaneous special revenue fund are terminated on June 30, 2009, and the remaining accounts in the miscellaneous special revenue fund are terminated on June 30, 2011. Thirty months before the termination dates listed in this paragraph, the commissioner must identify and notify the appropriate legislative finance committee of the accounts which are scheduled to terminate on those dates. Any balance in an account that is terminated is transferred to the general fund and any revenues that would have been deposited in that account are deposited in the general fund. Any statutory appropriation made out of an account that is terminated is canceled. This paragraph does not apply to an account established after July 1, 2004.

Sec. 24. Minnesota Statutes 2002, section 16B.55, subdivision 3, is amended to read:

Subd. 3. [PERMITTED USES.] A state vehicle may be used by a state employee to travel to or from the employee's residence:

(1) on a day on which it may be necessary for the employee to respond to a work-related emergency during hours when the employee is not normally working;

(2) if the employee has been assigned the use of a state vehicle for authorized state business on an extended basis, and the employee's primary place of work is not the state work station to which the employee is permanently assigned;

(3) if the employee has been assigned the use of a state vehicle for authorized state business away from the work station to which the employee is permanently assigned, and the number of miles traveled, or the time needed to conduct the business, will be minimized if the employee uses a state vehicle to travel to the employee's residence before or after traveling to the place of state business; or

(4) if the employee is authorized to participate in a ridesharing program established by the commissioner pursuant to section 174.257.

Use of a state vehicle under this subdivision requires the prior approval of the agency head or the designee of the agency head. A state employee must reimburse the employer for the use of a state vehicle to the extent the use would be considered a taxable fringe benefit for the employee under the Internal Revenue Code and regulations implementing the code, but for the employee reimbursing the employer. The reimbursement must be at the same

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6293

rate per mile as the standard mileage rate for business use of an automobile permitted under the Internal Revenue Code and regulations in effect when the employee uses the state vehicle. A state employee must report use of a state vehicle under this subdivision to the employer within 15 days of use of the vehicle. Notwithstanding any law to the contrary, the employer must deduct from the employee's pay the amount due to the employer under this subdivision.

Sec. 25. Minnesota Statutes 2003 Supplement, 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.

In addition, if a member of the Minnesota National Guard is killed in the line of state active service or federally funded state active service, as defined in section 190.05, subdivisions 5a and 5b, 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 grant.

The adjutant general may, within the limitations of this paragraph and other applicable laws, determine additional eligibility criteria for the grant, and must specify the criteria in department regulations and publish changes as necessary.

(c) 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) ~~75 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) ~~50 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.

Paragraph (b) 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.

(d) 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.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6294

(e) 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.

[EFFECTIVE DATE.] This section is effective July 1, 2004.

Sec. 26. Minnesota Statutes 2002, section 193.29, subdivision 3, is amended to read:

Subd. 3. [JOINT BOARDS.] ~~In all cases in which~~ If more than one company or other unit of the military forces ~~shall occupy~~ occupies the same armory, the armory board shall consist of ~~officers~~ military personnel 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. 27. Minnesota Statutes 2002, section 193.30, is amended to read:

193.30 [~~COMMANDING OFFICERS~~ ORGANIZATION OF ARMORY BOARD.]

The senior ~~officer~~ ranking member on each armory board shall be the chair, and the junior ~~officer~~ ranking member 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. 28. Minnesota Statutes 2002, section 193.31, is amended to read:

193.31 [SENIOR ~~OFFICER~~ RANKING MEMBER TO CONTROL DRILL HALL.]

The senior ~~officer~~ ranking member 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 ~~officer's~~ ranking member's 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. 29. Minnesota Statutes 2002, section 211B.15, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] For purposes of this section, "corporation" means:

(1) a corporation organized for profit that does business in this state;

(2) a nonprofit corporation that carries out activities in this state; or

(3) a limited liability company formed under chapter 322B, or under similar laws of another state, that does business in this state; or

(4) a business entity established or operated by a foreign government or by an entity or subdivision of an entity that exercises governmental functions for purposes of Public Law 97-473, Title II.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6295

Sec. 30. Minnesota Statutes 2002, section 354A.08, is amended to read:

354A.08 [AUTHORIZED INVESTMENTS.]

(a) 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.

(b) All or a portion of the assets of a first class city teacher retirement fund association may be invested in the Minnesota supplemental investment fund under section 11A.17.

Sec. 31. Minnesota Statutes 2002, section 354A.12, is amended by adding a subdivision to read:

Subd. 2c. [REIMBURSEMENT OF CERTAIN INVESTMENT UNDERPERFORMANCE.] (a) If the report of the state auditor under section 356.219 indicates that the Minneapolis Teachers Retirement Fund Association has underperformed the State Board of Investment basic retirement plans in its investment of the Minneapolis teachers retirement fund assets, on the first of the month next following the release of that report, the board of trustees of the Minneapolis Teachers Retirement Fund Association shall redeem the amount of the underperformance by imposing a charge on active members, retired members, and other benefit recipients.

(b) The additional charge on active members must continue for one year and must be a percentage of covered pay. The charge must be set by the board to represent the active member asset portion of the underperformance as determined by the board.

(c) The additional charge on retired members must continue for one year and must be a deduction from the annuity or benefit. The charge must be set by the board to represent the retired member asset portion of the underperformance as determined by the board.

(d) The total additional charges under paragraphs (b) and (c) must equal the total amount of the investment underperformance. If an active member retires during the course of the year during which the additional charge is in force, the member shall pay or have deducted the appropriate charge for the appropriate portion of the year.

(e) If the total amount of the underperformance is not recovered under paragraph (d), the balance of the underperformance must be added to any underperformance amount in the next year of underperformance, plus annual compound interest at the rate of 8.5 percent from the date of the applicable report of the state auditor to July 1 of the year in which the balance is to be collected.

Sec. 32. Minnesota Statutes 2002, section 354A.12, subdivision 3a, is amended to read:

Subd. 3a. [SPECIAL DIRECT STATE AID TO FIRST CLASS CITY TEACHERS RETIREMENT FUND ASSOCIATIONS.] (a) 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. In each ~~subsequent~~ fiscal year, ~~these payments~~ the state shall pay to the first class city teachers retirement fund associations ~~must be $2,827,000~~ $2,967,000 for the St. Paul~~, $12,954,000~~ Teachers Retirement Fund Association and $13,300,000 for the Minneapolis~~, and $486,000 for Duluth~~ Teachers Retirement Fund Association.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6296

(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.

Sec. 33. Minnesota Statutes 2003 Supplement, 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. The state matching aid is governed by section 354A.121.

Sec. 34. Minnesota Statutes 2002, section 354A.12, subdivision 3d, is amended to read:

Subd. 3d. [MTRFA AND SPTRFA SUPPLEMENTAL ADMINISTRATIVE EXPENSE ASSESSMENT.] (a) The active and retired membership of the Minneapolis Teachers Retirement Fund Association and of the St. Paul Teachers Retirement Fund Association is responsible for defraying supplemental administrative expenses other than investment expenses of the respective teacher retirement fund association.

(b) Investment expenses of the teachers retirement fund association are those expenses incurred by or on behalf of the retirement fund in connection with the investment of the assets of the retirement fund other than investment security transaction costs. Other administrative expenses are all expenses incurred by or on behalf of the retirement fund for all other retirement fund functions other than the investment of retirement fund assets. Investment and other administrative expenses must be accounted for using generally accepted accounting principles and in a manner consistent with the comprehensive annual financial report of the teachers retirement fund association for the immediately previous fiscal year under section 356.20.

(c) Supplemental administrative expenses other than investment expenses of a first class city teacher retirement fund association are those expenses for the fiscal year that:

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6297

(1) exceed, for the St. Paul Teachers Retirement Fund Association $443,745, or for the Minneapolis Teacher Retirement Fund Association ~~$671,513~~ $428,381, plus, in each case, an additional amount derived by applying the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers All Items Index published by the Bureau of Labor Statistics of the United States Department of Labor since July 1, ~~2001~~ 2004, to the applicable dollar amount; and

(2) for the St. Paul Teachers Retirement Fund Association only, exceed the amount computed by applying the most recent percentage of pay administrative expense amount, other than investment expenses, for the teachers retirement association governed by chapter 354 to the covered payroll of the respective teachers retirement fund association for the fiscal year.

(d) The board of trustees of each first class city teachers retirement fund association shall allocate the total dollar amount of supplemental administrative expenses other than investment expenses determined under paragraph (c)~~, clause (2),~~ among the various active and retired membership groups of the teachers retirement fund association and shall assess the various membership groups their respective share of the supplemental administrative expenses other than investment expenses, in amounts determined by the board of trustees. The supplemental administrative expense assessments must be paid by the membership group in a manner determined by the board of trustees of the respective teachers retirement association. Supplemental administrative expenses payable by the active members of the pension plan must be picked up by the employer in accordance with section 356.62.

(e) With respect to the St. Paul Teachers Retirement Fund Association, the supplemental administrative expense assessment must be fully disclosed to the various active and retired membership groups of the teachers retirement fund association. The chief administrative officer of the St. Paul Teachers Retirement Fund Association shall prepare a supplemental administrative expense assessment disclosure notice, which must include the following:

(1) the total amount of administrative expenses of the St. Paul Teachers Retirement Fund Association, the amount of the investment expenses of the St. Paul Teachers Retirement Fund Association, and the net remaining amount of administrative expenses of the St. Paul Teachers Retirement Fund Association;

(2) the amount of administrative expenses for the St. Paul Teachers Retirement Fund Association that would be equivalent to the teachers retirement association noninvestment administrative expense level described in paragraph (c);

(3) the total amount of supplemental administrative expenses required for assessment calculated under paragraph (c);

(4) the portion of the total amount of the supplemental administrative expense assessment allocated to each membership group and the rationale for that allocation;

(5) the manner of collecting the supplemental administrative expense assessment from each membership group, the number of assessment payments required during the year, and the amount of each payment or the procedure used to determine each payment; and

(6) any other information that the chief administrative officer determines is necessary to fairly portray the manner in which the supplemental administrative expense assessment was determined and allocated.

(f) The disclosure notice must be provided annually in the annual report of the association.

(g) The supplemental administrative expense assessments must be deposited in the applicable teachers retirement fund upon receipt.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6298

(h) Any omitted active membership group assessments that remain undeducted and unpaid to the teachers retirement fund association for 90 days must be paid by the respective school district. The school district may recover any omitted active membership group assessment amounts that it has previously paid. The teachers retirement fund association shall deduct any omitted retired membership group assessment amounts from the benefits next payable after the discovery of the omitted amounts.

Sec. 35. [354A.121] [INVESTMENT PROCEDURES FOR STATE AID TO MINNEAPOLIS TEACHERS RETIREMENT PLAN.]

(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.

(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 in the Minnesota supplemental investment fund. The Minneapolis Teachers Retirement Fund Association state aid amounts and any investment return obtained on those amounts must be invested in the income share account unless the executive director of the State Board of Investment, after appropriate consultation with the board of trustees of the Minneapolis Teachers Retirement Fund Association, determines that the amount should be invested in a different account. The executive director of the State Board of Investment, after appropriate consultation with the board, may transfer amounts between accounts in the Minnesota supplemental investment fund.

(c) If the assets of the Minneapolis teachers retirement fund other than the assets to the credit of the Minneapolis teachers retirement fund in the Minnesota supplemental investment fund 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.

(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.

Sec. 36. Minnesota Statutes 2002, section 354A.28, subdivision 9, is amended to read:

Subd. 9. [ADDITIONAL INCREASE.] (a) In addition to the postretirement increases granted under subdivision 8, paragraph (b), an additional percentage increase ~~must be computed and paid~~ is payable under this subdivision.

(b) The board of trustees shall determine the number of ~~annuities~~ annuitants or benefit recipients who have been receiving an annuity or benefit for at least 12 months as of the current June 30 in total, for the coordinated program, and for the basic program. These recipients are entitled to receive the ~~surplus investment earnings~~ additional postretirement increase.

(c) ~~Annually, on June 30, the board of trustees of the teachers retirement fund association shall determine the amount of reserves in the annuity reserve fund as specified in subdivision 6.~~

~~(d)~~ Annually, on June 30, the board of trustees of the Minneapolis Teachers Retirement Fund Association shall determine the ~~five-year annualized rate of return attributable to the assets in the annuity reserve fund under the formula or formulas specified in section 11A.04, clause (11)~~ percentage increase granted to eligible retirees of the teachers retirement association on the prior January 1, under section 11A.18, subdivision 9, paragraph (c).

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6299

~~(e) The board of trustees shall determine the amount of excess five-year annualized rate of return over the preretirement interest assumption as specified in section 356.215.~~

~~(f)~~ (d) The additional increase must be determined by multiplying the quantity one minus the rate of contribution deficiency, as specified in the most recent actuarial report of the actuary retained by the legislative commission on pensions and retirement, times the rate of return excess as determined in paragraph (e) for annuitants or benefit recipients of the coordinated program is the percentage rate determined under paragraph (c) and, if the Minneapolis Teachers Retirement Fund Association has a funding ratio of at least 100 percent, the additional increase for annuitants or benefit recipients of the basic program is the percentage rate determined under paragraph (c).

~~(g)~~ (e) The additional increase is payable to all eligible annuitants or benefit recipients on January 1 following the June 30 determination date under paragraphs (c) and (d).

Sec. 37. [STATE LOTTERY; UNCLAIMED PRIZE MONEY; TRANSFER.]

The director of the state lottery, in consultation with the commissioner of finance, shall determine how much money is still available of the prize money that was considered unclaimed under Minnesota Statutes, section 349A.08, subdivision 5, and that was not committed to the prize of a lottery game under that section before the 2004 fiscal year. The director of the state lottery shall transfer all available prize money to the general fund.

Sec. 38. [SALE OF STATE LAND.]

Subdivision 1. [STATE LAND SALES.] 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 $6,075,000 of state-owned land before June 30, 2005, and an additional $6,000,000 by June 30, 2007. Sales should be completed according to law and as provided in this section. Sales required by this section are in addition to sales required by laws enacted in 2003. Notwithstanding Minnesota Statutes, sections 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.

Subd. 2. [ANTICIPATED SAVINGS.] 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, 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 $6,075,000 in fiscal year 2005 and $6,000,000 in fiscal years 2006 and 2007, the governor must allocate the amount of the difference as reductions to general fund operating expenditures for other executive agencies.

Subd. 3. [REVOLVING LOAN FUND.] $192,200 is appropriated from the general fund in fiscal year 2005 and an additional $200,000 for the period ending June 30, 2007, 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, 2005.

Sec. 39. [BUILDING RENTAL.]

(a) By July 1, 2004, the commissioner of administration must issue a request for proposal seeking a person or entity to lease the state-owned building at 168 Aurora Avenue in the city of St. Paul. The request for proposal and the resulting lease must specify that:

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6300

(1) the tenant will use the building to operate a day care and after-school activity center;

(2) the tenant will make and pay for any improvements needed to allow the building to be used as a day care and after-school activity center; and

(3) the state may terminate the lease as required by law, or within 60 days after passage of a new law requiring the state to terminate the lease.

(b) The commissioner of administration must enter into a lease with a person or entity responding to the request for proposal who demonstrates willingness and ability to meet the conditions in paragraph (a), clauses (1) to (3). The lease may specify terms under which the state will reimburse the tenant for a portion of the improvements the tenant makes to the property at the conclusion of the lease.

Sec. 40. [REPAYMENT.]

If the commissioner of administration is required to repay the energy assessment account in the special revenue fund because certain expenditures from the account did not comply with law, the commissioner must make the repayment from previous general fund appropriations to the Department of Administration. Any reductions in complement resulting from this repayment must come from unclassified management positions.

Sec. 41. [RESTRICTIONS ON DEMOLITION.]

No state money may be used for demolition of the Ford Building at 117 University Avenue, Saint Paul, unless:

(1) the commissioner of administration makes reasonable efforts to attempt to lease or transfer ownership of the building to a person or entity that will preserve the historic features of the building at no cost to the state; and

(2) the commissioner reports to the chairs of the senate Finance Committee and the house Capital Investment Committee on what efforts were made to lease or transfer ownership and why these efforts were not successful.

Sec. 42. [COMMISSIONER'S RECOMMENDATIONS ON FEE ACCOUNTS.]

By January 2, 2005, the commissioner of finance must report to the Finance Committee of the senate and the Ways and Means Committee of the house of representatives on the different procedures for accounting for and appropriating licensing fee revenue, and must make recommendations for consistent treatment of that fee revenue.

Sec. 43. [APPROPRIATION FOR ASSISTIVE TECHNOLOGY.]

$200,000 is appropriated from the general fund to the commissioner of administration for a grant to Assistive Technology of Minnesota as follows:

(1) $150,000 to administer a microloan program to support the purchase of equipment and devices for people with disabilities and their families and employers; and

(2) $50,000 to develop the access to telework program.

The appropriation is available until July 1, 2005.

Sec. 44. [REPEALER.]

Minnesota Statutes 2003 Supplement, section 16A.151, subdivision 5, is repealed.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6301

Sec. 45. [EFFECTIVE DATE.]

(a) Unless otherwise specified, sections 1 to 29 and 37 to 44 are effective the day following final enactment.

(b) Sections 30 to 36 are effective July 1, 2004.

ARTICLE 2

STATE BUDGET PROCESS

Section 1. Minnesota Statutes 2002, section 3.23, is amended to read:

3.23 [APPROPRIATIONS.]

A ~~standing~~ statutory appropriation, within the meaning of this section and section 3.24, is one which sets apart a specified or unspecified and open amount of public money or funds of the state general fund for expenditure for a purpose and makes the amount, or a part of it, available for use continuously ~~and at a time more distant than~~ for a period of time beyond the end of the second fiscal year after the session of the legislature at which the appropriation is made.

Every appropriation stated to be an "annual appropriation," "payable annually," "appropriated annually," or "annually appropriated," and every appropriation described by equivalent terms or language is a ~~standing~~ statutory appropriation as defined in this section.

Sec. 2. Minnesota Statutes 2002, section 3.98, subdivision 3, is amended to read:

Subd. 3. [DISTRIBUTION.] A copy of the fiscal note shall be delivered to the chair of the ~~Appropriations~~ Ways and Means Committee of the house of representatives, the chair of the Finance Committee of the senate, the chair of the standing committee to which the bill has been referred, to the chief author of the bill and to the commissioner of finance.

Sec. 3. Minnesota Statutes 2002, section 15.16, subdivision 5, is amended to read:

Subd. 5. [OBTAINING RECOMMENDATION.] No control of state-owned lands may be transferred between state departments or agencies without the departments or agencies first consulting the chairs of the senate Finance Committee and house of representatives ~~Appropriations~~ Ways and Means Committee and obtaining their recommendations. The recommendations are advisory only. Failure to obtain a prompt recommendation is deemed a negative recommendation.

Sec. 4. Minnesota Statutes 2003 Supplement, section 16A.102, subdivision 1, is amended to read:

Subdivision 1. [GOVERNOR'S RECOMMENDATION.] (a) By the date specified in section 16A.11, subdivision 1, for submission of parts one and two of the governor's budget, the governor shall submit to the legislature a recommended revenue target for the next two bienniums.

(b) The recommended revenue target must specify:

(1) the maximum share of Minnesota personal income to be collected in taxes and other revenues to pay for state and local government services; and

(2) the division of the share between state and local government revenues~~; and~~

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6302

~~(3) the mix and rates of income, sales, and other state and local taxes including property taxes and other revenues~~.

Sec. 5. Minnesota Statutes 2002, section 16A.102, subdivision 2, is amended to read:

Subd. 2. [LEGISLATIVE BUDGET RESOLUTION.] (a) By March 15 of each odd-numbered year, the legislature shall by concurrent resolution adopt revenue targets for the next two bienniums.

(b) The resolution must specify:

(1) the maximum share of Minnesota personal income to be collected in taxes and other revenues to pay for state and local government services; and

(2) the division of the share between state and local government services~~; and~~

~~(3) the mix and rates of income, sales, and other state and local taxes including property taxes and other revenues~~.

(c) The resolution must be based on the February forecast prepared under section 16A.103 and take into consideration the revenue targets recommended by the governor under subdivision 1.

Sec. 6. Minnesota Statutes 2002, section 16A.102, is amended by adding a subdivision to read:

Subd. 4. [REPORTING INFORMATION.] When updated information is available at the time of a state revenue and expenditure forecast as specified in section 16A.103, subdivision 1, and after the completion of a legislative session, the Department of Finance must report on revenue relative to personal income as specified in subdivision 1.

Sec. 7. Minnesota Statutes 2002, section 16A.641, subdivision 2, is amended to read:

Subd. 2. [REPORT.] Before a sale of general obligation bonds, the commissioner shall report the amount of bonds to be issued and a detailed list of the projects or a statement of the program to be financed to the chairs of the house ~~Appropriations~~ Ways and Means and Tax Committees and of the senate Finance and Tax Committees, and the minority leaders of the house and senate, for their advisory recommendation. The recommendation is positive if not received within ten days.

Sec. 8. Minnesota Statutes 2002, section 16B.24, subdivision 3, is amended to read:

Subd. 3. [DISPOSAL OF OLD BUILDINGS.] The commissioner, upon request of the head of an agency which has control of a state-owned building which is no longer used or which is a fire or safety hazard, shall, after obtaining approval of the chairs of the senate Finance Committee and house of representatives ~~Appropriations~~ Ways and Means Committee, sell, wreck, or otherwise dispose of the building. In the event a sale is made the proceeds shall be deposited in the proper account or in the general fund.

Sec. 9. Minnesota Statutes 2002, section 16B.31, subdivision 3, is amended to read:

Subd. 3. [FEDERAL AID.] (a) [APPLICATION FOR AID.] The commissioner, or any other agency to whom an appropriation is made for a capital improvement, shall apply for the maximum federal share for each project.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6303

(b) [ACCEPTANCE OF AID.] The commissioner is the state agency empowered to accept money provided for or made available to this state by the United States of America or any federal department or agency for the construction and equipping of any building for state purposes not otherwise provided for by law, other than University of Minnesota buildings, in accordance with the provisions of federal law and any rules or regulations promulgated under federal law. The commissioner may do whatever is required of this state by federal law, rules, and regulations in order to obtain the federal money.

(c) [FEDERAL FUNDS CONSIDERED PART OF APPROPRIATION.] The commissioner may after consultation with the chairs of the senate Finance Committee and house of representatives ~~Appropriations~~ Ways and Means Committee, adopt a plan, provide for an improvement, or construct a building that contemplates expenditure for its completion of more money than the appropriation for it, if the excess money is provided by the United States government and granted to the state of Minnesota under federal law or any rule or regulation promulgated under federal law. This federal money, for the purpose of this section, is a part of the appropriation for the project.

(d) [DELAYED FEDERAL MONEY.] If an amount is payable to a creditor of the state from a project account which is financed partly with federal money and the project is included in appropriations made to the commissioner for public buildings and equipment, and the amount cannot be paid on time because of a deficiency of money in the project account caused by a delay in the receipt of federal money, the commissioner may provide money needed to pay the amount by temporarily transferring the sum to the project account from any other appropriation made to the commissioner in the same act. Required money for a payment is appropriated for that purpose. When the delayed federal money is received, the commissioner shall have the amount of money transferred returned to the account from which it came.

Sec. 10. Minnesota Statutes 2003 Supplement, section 84.026, is amended to read:

84.026 [CONTRACTS AND GRANTS FOR PROVISION OF NATURAL RESOURCES SERVICES.]

The commissioner of natural resources is authorized to enter into contractual or grant agreements with any public or private entity for the provision of statutorily prescribed natural resources services by or for the department. The contracts or grants shall specify the services to be provided and the amount and method of reimbursement. Funds generated in a contractual agreement made pursuant to this section shall be deposited in the special revenue fund and are appropriated to the department for purposes of providing the services specified in the contracts. All contractual and grant agreements shall be processed in accordance with the provisions of section 16C.05. The commissioner shall report revenues collected and expenditures made under this section to the chairs of the Committees on ~~Appropriations~~ Ways and Means in the house and Finance in the senate by January 1 of each odd-numbered year.

Sec. 11. Minnesota Statutes 2002, section 85A.02, subdivision 5a, is amended to read:

Subd. 5a. [EMPLOYEES.] (a) The board shall appoint an administrator who shall serve as the executive secretary and principal administrative officer of the board and, subject to its approval, shall operate the Minnesota Zoological Garden and enforce all rules and policy decisions of the board. The administrator must be chosen solely on the basis of training, experience, and other qualifications appropriate to the field of zoo management and development. The board shall set the salary of the administrator. The salary of the administrator may not exceed 130 percent of the salary of the governor; however, any amount exceeding 95 percent of the salary of the governor must consist of nonstate funds. The administrator shall perform duties assigned by the board and serves in the unclassified service at the pleasure of the board. The administrator, with the participation of the board, shall appoint a development director in the unclassified service or contract with a development consultant to establish mechanisms to foster community participation in and community support for the Minnesota Zoological Garden. The board may employ other necessary professional, technical, and clerical personnel. Employees of the zoological garden are eligible for salary supplement in the same manner as employees of other state agencies. The commissioner of finance shall determine the amount of salary supplement based on available funds.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6304

(b) The board may contract with individuals to perform professional services and may contract for the purchases of necessary species exhibits, supplies, services, and equipment. The board may also contract for the construction and operation of entertainment facilities on the zoo grounds that are not directly connected to ordinary functions of the zoological garden. The zoo board may not enter into a final agreement for construction of an entertainment facility that is not directly connected to the ordinary functions of the zoo until after final construction plans have been submitted to the chairs of the senate Finance and house ~~Appropriations~~ Ways and Means Committees for their recommendations.

The zoo may not contract for entertainment during the period of the Minnesota State Fair that would directly compete with entertainment at the Minnesota State Fair.

Sec. 12. Minnesota Statutes 2002, section 115A.557, subdivision 4, is amended to read:

Subd. 4. [REPORT.] By July 1 of each odd-numbered year, the director shall report on how the money was spent and the resulting statewide improvements in solid waste management to the house of representatives and senate ~~Appropriations~~ Ways and Means, Finance, and Environment and Natural Resources Committees, the Finance Division of the senate Committee on Environment and Natural Resources, and the house of representatives Committee on Environment and Natural Resources Finance. The report shall be included in the report required under section 115A.411.

Sec. 13. Minnesota Statutes 2003 Supplement, section 116J.966, subdivision 1, is amended to read:

Subdivision 1. [GENERALLY.] (a) The commissioner shall promote, develop, and facilitate trade and foreign investment in Minnesota. In furtherance of these goals, and in addition to the powers granted by section 116J.035, the commissioner may:

(1) locate, develop, and promote international markets for Minnesota products and services;

(2) arrange and lead trade missions to countries with promising international markets for Minnesota goods, technology, services, and agricultural products;

(3) promote Minnesota products and services at domestic and international trade shows;

(4) organize, promote, and present domestic and international trade shows featuring Minnesota products and services;

(5) host trade delegations and assist foreign traders in contacting appropriate Minnesota businesses and investments;

(6) develop contacts with Minnesota businesses and gather and provide information to assist them in locating and communicating with international trading or joint venture counterparts;

(7) provide information, education, and counseling services to Minnesota businesses regarding the economic, commercial, legal, and cultural contexts of international trade;

(8) provide Minnesota businesses with international trade leads and information about the availability and sources of services relating to international trade, such as export financing, licensing, freight forwarding, international advertising, translation, and custom brokering;

(9) locate, attract, and promote foreign direct investment and business development in Minnesota to enhance employment opportunities in Minnesota;

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6305

(10) provide foreign businesses and investors desiring to locate facilities in Minnesota information regarding sources of governmental, legal, real estate, financial, and business services;

(11) enter into contracts or other agreements with private persons and public entities, including agreements to establish and maintain offices and other types of representation in foreign countries, to carry out the purposes of promoting international trade and attracting investment from foreign countries to Minnesota and to carry out this section, without regard to section 16C.06; and

(12) market trade-related materials to businesses and organizations, and the proceeds of which must be placed in a special revolving account and are appropriated to the commissioner to prepare and distribute trade-related materials.

(b) The programs and activities of the commissioner of employment and economic development and the Minnesota Trade Division may not duplicate programs and activities of the commissioner of agriculture or the Minnesota World Trade Center.

(c) The commissioner shall notify the chairs of the senate Finance and house ~~Appropriations~~ Ways and Means Committees of each agreement under this subdivision to establish and maintain an office or other type of representation in a foreign country.

Sec. 14. Minnesota Statutes 2002, section 116O.071, subdivision 3, is amended to read:

Subd. 3. [AUTHORITY TO PERFORM REQUESTED EVALUATIONS.] The governor, speaker of the house of representatives, house of representatives minority leader, senate majority leader, senate minority leader, chair of the house of representatives ~~Appropriations~~ Ways and Means Committee, chair of the senate Finance Committee, director, or a member of the legislature considering the introduction or approval of legislation containing funding for scientifically and technologically related research and development may request the corporation to evaluate a loan or grant made or to be made or the proposed legislation for funding scientifically and technologically related research and development to determine (1) whether it complies with the guidelines required by subdivision 1, clause (1), item (ii); (2) whether it is technically feasible; and (3) for development proposals, whether the proposal appears to have the potential for economic development. Ad hoc committees may be appointed by the corporation.

Sec. 15. Minnesota Statutes 2002, section 116P.08, subdivision 3, is amended to read:

Subd. 3. [STRATEGIC PLAN REQUIRED.] (a) The commission shall adopt a strategic plan for making expenditures from the trust fund, including identifying the priority areas for funding for the next six years. The strategic plan must be updated every two years. The plan is advisory only. The commission shall submit the plan, as a recommendation, to the house of representatives ~~Appropriations~~ Ways and Means and senate Finance Committees by January 1 of each odd-numbered year.

(b) The commission may accept or modify the draft of the strategic plan submitted to it by the advisory committee before voting on the plan's adoption.

Sec. 16. Minnesota Statutes 2002, section 144.701, subdivision 4, is amended to read:

Subd. 4. [FILING FEES.] Each report which is required to be submitted to the commissioner of health under sections 144.695 to 144.703 and which is not submitted to a voluntary, nonprofit reporting organization in accordance with section 144.702 shall be accompanied by a filing fee in an amount prescribed by rule of the commissioner of health. Upon the withdrawal of approval of a reporting organization, or the decision of the commissioner to not renew a reporting organization, fees collected under section 144.702 shall be submitted to the commissioner. Fees received under this subdivision shall be deposited in a revolving fund and are appropriated to

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6306

the commissioner of health for the purposes of sections 144.695 to 144.703. The commissioner shall report the termination or nonrenewal of the voluntary reporting organization to the chair of the Health and Human Services ~~Subdivision of the Appropriations~~ Finance Committee of the house of representatives, to the chair of the Health and Human Services Division of the Finance Committee of the senate, and the commissioner of finance.

Sec. 17. Minnesota Statutes 2002, section 245.90, is amended to read:

245.90 [COURT AWARDED FUNDS, DISPOSITION.]

The commissioner of human services shall notify the house ~~Appropriations~~ Ways and Means and senate Finance Committees of the terms of any contractual arrangement entered into by the commissioner and the attorney general, pursuant to an order of any court of law, which provides for the receipt of funds by the commissioner.

Any funds recovered or received by the commissioner pursuant to an order of any court of law shall be placed in the general fund.

Sec. 18. Minnesota Statutes 2002, section 270.063, subdivision 1, is amended to read:

Subdivision 1. [APPROPRIATION.] For the purpose of collecting delinquent state tax liabilities or debts as defined in section 16D.02, subdivision 3, there is appropriated to the commissioner of revenue an amount representing the cost of collection by contract with collection agencies, revenue departments of other states, or attorneys to enable the commissioner to reimburse these agencies, departments, or attorneys for this service. The commissioner shall report quarterly on the status of this program to the chair of the house Tax and ~~Appropriation~~ Ways and Means Committees and senate Tax and Finance Committees.

Sec. 19. Minnesota Statutes 2002, section 270.71, is amended to read:

270.71 [ACQUISITION AND RESALE OF SEIZED PROPERTY.]

For the purpose of enabling the commissioner of revenue to purchase or redeem seized property in which the state of Minnesota has an interest arising from a lien for unpaid taxes, or to provide for the operating costs of collection activities of the Department of Revenue, there is appropriated to the commissioner an amount representing the cost of such purchases, redemptions, or collection activities. Seized property acquired by the state of Minnesota to satisfy unpaid taxes shall be resold by the commissioner. The commissioner shall preserve the value of seized property while controlling it, including but not limited to the procurement of insurance. For the purpose of refunding the proceeds from the sale of levied or redeemed property which are in excess of the actual tax liability plus costs of acquiring the property, there is hereby created a levied and redeemed property refund account in the agency fund. All amounts deposited into this account are appropriated to the commissioner of revenue. The commissioner shall report quarterly on the status of this program to the chairs of the house Taxes and ~~Appropriations~~ Ways and Means Committees and senate Taxes and Tax Laws and Finance Committees.

ARTICLE 3

FAIR CAMPAIGN REFORM ACT

Section 1. [CITATION.]

This article may be cited as the Fair Campaign Reform Act.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6307

Sec. 2. Minnesota Statutes 2002, section 10A.02, subdivision 1, is amended to read:

Subdivision 1. [MEMBERSHIP.] The Campaign Finance and Public Disclosure Board is composed of ~~six~~ nine members. The governor must appoint the members with the advice and consent of three-fifths of both the senate and the house of representatives acting separately. If either house fails to confirm the appointment of a board member within 45 legislative days after appointment or by adjournment sine die, whichever occurs first, the appointment terminates on the day following the 45th legislative day or on adjournment sine die, whichever occurs first. If either house votes not to confirm an appointment, the appointment terminates on the day following the vote not to confirm. Two members must be former members of the legislature who support different political parties; ~~two~~ three members must be persons who have not been public officials, held any political party office other than precinct delegate, or been elected to public office for which party designation is required by statute in the three years preceding the date of their appointment; and the other ~~two~~ four members must support different political parties. No more than three of the members of the board may support the same political party. No member of the board may currently serve as a lobbyist.

Sec. 3. Minnesota Statutes 2002, section 10A.02, subdivision 2, is amended to read:

Subd. 2. [VACANCY; TERMS.] An appointment to fill a vacancy is made only for the unexpired term of a member who is being replaced and the appointee must meet the same stated qualifications as the member being replaced. The membership terms, compensation, and removal of members on the board are as provided in section 15.0575, except that the extension of terms and the filling of vacancies are subject to the advice and consent of the legislature in the same manner as provided in subdivision 1, and that the compensation for a member attending an expedited hearing under section 10A.63 is $100 per day.

Sec. 4. Minnesota Statutes 2002, section 10A.02, subdivision 3, is amended to read:

Subd. 3. [VOTE REQUIRED.] The concurring vote of ~~four~~ six members of the board is required to decide any matter before the board.

Sec. 5. Minnesota Statutes 2002, section 10A.02, subdivision 7, is amended to read:

Subd. 7. [POLITICAL ACTIVITY.] (a) All members and employees of the board are subject to any provisions of law regulating political activity by state employees. In addition, no member or employee of the board may be a candidate for, or holder of, (1) a national, state, congressional district, legislative district, county, or precinct office in a political party, or (2) an elected public office ~~for which party designation is required by statute~~.

(b) A member or employee of the board must not serve on a committee supporting or opposing a candidate or ballot question and must not make a contribution to or solicit a contribution on behalf of a candidate, political committee, political fund, party unit, or ballot question. For purposes of this paragraph, "candidate" includes a state candidate, as defined in section 10A.01, subdivision 10, and a local candidate, as defined in section 211A.01, subdivision 3.

Sec. 6. Minnesota Statutes 2002, section 10A.02, subdivision 12, is amended to read:

Subd. 12. [ADVISORY OPINIONS.] (a) The board may issue and publish advisory opinions on the requirements of this chapter or chapter 211A or 211B based upon real or hypothetical situations. An application for an advisory opinion may be made only by an individual or association who wishes to use the opinion to guide the individual's or the association's own conduct. The board must issue written opinions on all such questions submitted to it within 30 days after receipt of written application, unless a majority of the board agrees to extend the time limit.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6308

(b) A written advisory opinion issued by the board is binding on the board in a subsequent board proceeding concerning the person making or covered by the request and is a defense in a judicial proceeding that involves the subject matter of the opinion and is brought against the person making or covered by the request unless:

(1) the board has amended or revoked the opinion before the initiation of the board or judicial proceeding, has notified the person making or covered by the request of its action, and has allowed at least 30 days for the person to do anything that might be necessary to comply with the amended or revoked opinion;

(2) the request has omitted or misstated material facts; or

(3) the person making or covered by the request has not acted in good faith in reliance on the opinion.

(c) A request for an opinion and the opinion itself are nonpublic data. The board, however, may publish an opinion or a summary of an opinion, but may not include in the publication the name of the requester, the name of a person covered by a request from an agency or political subdivision, or any other information that might identify the requester, unless the person consents to the inclusion.

Sec. 7. [10A.61] [COMPLAINTS OF UNFAIR CAMPAIGN PRACTICES.]

Subdivision 1. [ADMINISTRATIVE REMEDY; EXHAUSTION.] A complaint alleging a violation of chapter 211A or 211B or sections 383B.041 to 383B.058 must be filed with the board. The complaint must be finally disposed of by the board, or a panel of the board, before the alleged violation may be prosecuted by a county attorney.

Subd. 2. [LIMITATION ON FILING.] The complaint must be filed within one year after the occurrence of the act or failure to act that is the subject of the complaint, except that if the act or failure to act involves fraud, concealment, or misrepresentation that could not be discovered during that one-year period, the complaint may be filed within one year after the fraud, concealment, or misrepresentation was discovered.

Subd. 3. [FORM OF COMPLAINT.] The complaint must be in writing, submitted under oath, and detail the factual basis for the claim that a violation of law has occurred. The board may prescribe the form of a complaint.

Subd. 4. [PROOF OF CLAIM.] The burden of proving the allegations in the complaint is on the complainant. The standard of proof of a violation of section 211B.06, relating to false statements in paid political advertising or campaign material, is clear and convincing evidence. The standard of proof of any other violation of chapter 211A or 211B or sections 383B.041 to 383B.058 is a preponderance of the evidence.

Subd. 5. [FILING FEE; WAIVER.] (a) The complaint must be accompanied by a filing fee of $50, unless filed by a filing officer under section 211A.05, subdivision 2.

(b) The board may waive the payment of the filing fee. An individual seeking a waiver of the fee must file with the board an affidavit stating that the individual is financially unable to pay the fee because the individual is receiving public assistance or has an annual income not greater than 125 percent of the poverty line established under United States Code, title 42, section 9902(2), or because of another good and sufficient reason.

Subd. 6. [REQUEST TO EXPEDITE.] If the complaint is filed within 60 days before the primary or special election, or within 90 days before the general election to which the complaint relates, the complainant may file with the board a request for an expedited hearing under section 10A.63.

Subd. 7. [SERVICE ON RESPONDENT.] Upon receipt of the filed complaint, the board must serve a copy of the complaint on the respondent.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6309

Sec. 8. [10A.62] [REVIEW BY EXECUTIVE DIRECTOR.]

Subdivision 1. [TIME FOR REVIEW.] When practicable, within one business day after the complaint was filed with the board, but not longer than three business days, the executive director must review the complaint and make a recommendation to the board for its disposition.

Subd. 2. [RECOMMENDATION.] (a) If the executive director determines that the complaint does not set forth a prima facie violation of chapter 211A or 211B or sections 383B.041 to 383B.058, the recommendation must be to dismiss the complaint. The board may dismiss the complaint without a hearing, as provided in section 10A.65, subdivision 2.

(b) If the executive director determines that the complaint sets forth a prima facie violation of section 211B.06 and that the complaint was filed within 60 days before the primary or special election or within 90 days before the general election to which the complaint relates, the recommendation must be that the complaint receive an expedited hearing under section 10A.63.

(c) If the executive director determines that the complaint sets forth a prima facie violation of a provision of chapter 211A or 211B, other than section 211B.06, or sections 383B.041 to 383B.058, and that the complaint was filed within 60 days before the primary or special election or within 90 days before the general election to which the complaint relates, the executive director may recommend that the complaint receive an expedited hearing under section 10A.63. If the complaint was accompanied by a request from the complainant for an expedited hearing, the executive director must note the request along with the recommendation. In making the recommendation for an expedited hearing, the executive director must consider the gravity and urgency of the complaint and the number of complaints pending before panels of the board.

(d) If the complaint is not disposed of under paragraphs (a) to (c), the executive director must recommend that it be heard by the board under section 10A.64.

Subd. 3. [NOTICE TO PARTIES.] The board must notify all parties to the complaint of the recommendation made under subdivision 2 and that the respondent may submit evidence for consideration by the board or a panel of the board.

Subd. 4. [JOINDER AND SEPARATION OF COMPLAINTS.] The executive director may join two or more complaints if the executive director determines that the allegations in each complaint are of the same or similar character, are based on the same act or failure to act, or are based on two or more acts or failures to act constituting parts of a common scheme or plan. If one complaint contains two or more allegations, the executive director may separate the allegations if they are not of the same or similar character, if they are not based on the same act or failure to act, or if they are not based on two or more acts or failures to act constituting parts of a common scheme or plan. If the executive director separates the allegations in a complaint, the executive director may make separate recommendations under subdivision 2 for each allegation.

Sec. 9. [10A.63] [EXPEDITED HEARING.]

Subdivision 1. [ACTION ON RECOMMENDATION.] If the executive director has recommended under section 10A.62, subdivision 2, paragraph (b), that the complaint receive an expedited hearing, the board chair must schedule it for an expedited hearing. If the executive director has recommended under section 10A.62, subdivision 2, paragraph (c), that the complaint receive an expedited hearing, or if the executive director has recommended under section 10A.62, subdivision 2, paragraph (d), that the complaint be heard by the board without an expedited hearing, the recommendation must be submitted to all the members of the board. The board chair, or any three other members of the board, may instruct the executive director to schedule it for an expedited hearing.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6310

Subd. 2. [APPOINTMENT OF PANEL.] The board chair must select by lot a panel of at least three members of the board, no more than half of whom support the same political party, to hear the complaint and determine whether there is probable cause to refer the complaint to the full board for a hearing under section 10A.64.

Subd. 3. [HEARING.] The panel must hold one expedited public hearing on the complaint no later than two business days after the executive director made the recommendation for an expedited hearing, except that for good cause the panel may hold the hearing no later than seven days after the executive director made the recommendation. This deadline may be extended by agreement of all parties to the complaint, but the hearing must be held not later than 90 days after the complaint was filed. The hearing may be conducted by a conference telephone call that meets all the requirements of section 13D.02 for public meetings by interactive television, except that it need not meet the requirement that participants be able to see each other. All members of the panel must be present, either in person or by electronic means, before any official action may be taken. The respondent may submit a response, including supporting affidavits and documentation, for consideration by the panel. A vote of a majority of all members of the panel is required for any official action.

Subd. 4. [DISPOSITION.] At the expedited hearing, the panel must make only one of the following determinations:

(a) There is no probable cause to believe that the violation of law alleged in the complaint has occurred. If the panel so determines by a unanimous vote of all the members, it must dismiss the complaint. If the vote to dismiss is not unanimous, the panel must forward the complaint to the board for dismissal under section 10A.65, subdivision 2.

(b) There is probable cause to believe that the violation of law alleged in the complaint has occurred. If the panel so determines, it must refer the complaint to the board. The board must hear the complaint under section 10A.64 within ten days after the panel referred the complaint to it.

(c) The evidence is insufficient for the panel to make a determination under paragraph (a) or (b) and further investigation of the complaint is necessary. If the panel requests an investigation, it may consider the results of the investigation or it may refer the complaint to the board and the board must hold a hearing under section 10A.64.

Subd. 5. [RECONSIDERATION BY ENTIRE BOARD.] (a) If the panel dismisses the complaint, the panel shall provide to the complainant written notice of: (i) the right to seek reconsideration of the panel's decision by the entire board, under section 10A.64; and (ii) the cost-shifting and fee-shifting provisions of paragraph (c).

(b) A petition for reconsideration must be filed within two business days after the dismissal. The board must render its decision on the petition within three business days after receiving the petition. If the petition for reconsideration is granted, the board must hear the complaint under section 10A.64 within five business days after granting the petition.

(c) If the petition for reconsideration is not granted, the board may order the complainant who filed the petition to pay: (i) to the respondent, reasonable attorney fees for legal costs incurred following the panel's decision; and (ii) to the general fund, the costs of the panel that dismissed the complaint as determined by the board.

Sec. 10. [10A.64] [HEARING BY BOARD.]

Subdivision 1. [REVIEW BY BOARD.] The board must review each complaint referred to it by the executive director under section 10A.62 or by a panel under section 10A.63. The board may dismiss the complaint under section 10A.65, subdivision 2. If the board decides that the evidence is insufficient for it to determine whether the violation alleged in the complaint has occurred, the board may request an investigation.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6311

Subd. 2. [DEADLINE FOR HEARING.] Unless dismissed, or expedited under section 10A.63, the board must hold its first hearing on each complaint within the following times:

(1) 30 days after the complaint was filed, if the complaint was filed within 60 days before the primary or special election or within 90 days before the general election to which the complaint relates; or

(2) 90 days after the complaint was filed, if it was filed at any other time.

For good cause shown, the board may extend either of these deadlines by 60 days.

Subd. 3. [HEARING.] The hearing must be conducted in public. The respondent may submit a response, including supporting affidavits and documentation, for consideration by the board.

Subd. 4. [DISPOSITION OF COMPLAINT.] At or within 14 days after the hearing, the board must determine whether the violation alleged in the complaint occurred and must do one or more of the following:

(a) The board may dismiss the complaint under section 10A.65, subdivision 2.

(b) The board may determine that the evidence is insufficient for it to determine whether the violation alleged in the complaint occurred and request that an investigation be conducted as provided in subdivision 1.

(d) The board may find that a statement made in a paid advertisement or campaign material violated section 211B.06.

(e) The board may impose a civil penalty for any violation of chapter 211A or 211B or sections 383B.041 to 383B.058. The amount of the civil penalty imposed by the board may be up to $3,000.

(f) The board may refer the complaint to the appropriate county attorney for prosecution.

Subd. 5. [FILING FEE.] If the board finds under subdivision 4, paragraph (d), that a statement violated section 211B.06, or if the board imposes a civil penalty under subdivision 4, paragraph (e), the board must refund the filing fee to the complainant and assess the amount of the filing fee against the respondent. If the complaint was filed by a filing officer under section 211A.05, subdivision 2, the board must impose a filing fee on a respondent found in violation of chapter 211A.

Sec. 11. [10A.65] [PROCEDURES.]

Subdivision 1. [WITHDRAWAL OF COMPLAINT.] At any time before the hearing, a complainant may withdraw a complaint filed under section 10A.61. After the hearing begins, a complaint filed under section 10A.61 may only be withdrawn with the permission of the board.

Subd. 2. [DISMISSAL OF COMPLAINT.] The board may at any time dismiss a complaint filed under section 10A.61 that is pending before it or before a panel of the board. If the board determines that the complaint was frivolous, the board may order the complainant to pay the respondent's reasonable attorney fees and to pay the costs of the board as determined by the board.

Subd. 3. [OPEN MEETINGS.] While a complaint filed under section 10A.61 is pending before the board or a panel of the board, the members of the board must not discuss the complaint with a party to the complaint, an attorney representing a party to the complaint, or an investigator for the board except at a meeting of the board

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6312

subject to the Open Meeting Law, chapter 13D. The board, but not a panel of the board, may close a meeting to deliberate on a complaint under section 10A.64, subdivision 4. All votes must be made a part of the public record and all proceedings on the complaint, except as provided in this subdivision, must be open.

Sec. 12. Minnesota Statutes 2002, section 201.275, is amended to read:

201.275 [INVESTIGATIONS; PROSECUTIONS.]

A county attorney who is notified of an alleged violation of this chapter shall promptly investigate. If there is probable cause for instituting a prosecution, the county attorney shall proceed by complaint or present the charge, with whatever evidence has been found, to the grand jury. ~~A county attorney who refuses or intentionally fails to faithfully perform this or any other duty imposed by this chapter is guilty of a misdemeanor and upon conviction shall forfeit office.~~ The county attorney~~, under the penalty of forfeiture of office,~~ shall prosecute all violations of this chapter except violations of this section; if, however, a complainant withdraws an allegation under this chapter, the county attorney is not required to proceed with the prosecution. The provisions of section 201.27, subdivision 3, do not apply to this section.

Sec. 13. Minnesota Statutes 2003 Supplement, section 204B.11, subdivision 1, is amended to read:

Subdivision 1. [AMOUNT; DISHONORED CHECKS; CONSEQUENCES.] Except as provided by subdivision 2, a filing fee shall be paid by each candidate who files an affidavit of candidacy. The fee shall be paid at the time the affidavit is filed. The amount of the filing fee shall vary with the office sought as follows:

~~(a)~~ (1) for the office of governor, and lieutenant governor, $300, plus a fair campaign fee of $50;

(2) for the office of attorney general, $300, plus a fair campaign fee of $50;

(3) for the office of state auditor, or secretary of state, $300, plus a fair campaign fee of $50;

(4) for the office of representative in Congress, $300, plus a fair campaign fee of $50;

(5) for the office of judge of the Supreme Court, or judge of the Court of Appeals, or $300, plus a fair campaign fee of $50;

(6) for judge of the district court, $300, plus a fair campaign fee of $50;

~~(b)~~ (7) for the office of senator in Congress, $400, plus a fair campaign fee of $50;

~~(c)~~ (8) for the office of senator ~~or representative~~ in the legislature, $100, plus a fair campaign fee of $50;

(9) for the office of representative in the legislature, $100, plus a fair campaign fee of $50;

~~(d)~~ (10) for a county office, $50, plus a fair campaign fee of $50; ~~and~~

~~(e)~~ (11) for the office of soil and water conservation district supervisor, $20;

(12) for the office of school board member, a fair campaign fee of $5; and

(13) for city office, a fair campaign fee of $10.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6313

For the office of presidential elector, and for those offices for which no compensation is provided, no filing fee is required.

The filing fees received by the county auditor shall immediately be paid to the county treasurer. The filing fees and fair campaign fees received by the secretary of state, and any fair campaign fees received by a county auditor or municipal or school district clerk, shall immediately be paid to the commissioner of finance.

When an affidavit of candidacy has been filed with the appropriate filing officer and the requisite filing fee has been paid, the filing fee shall not be refunded. If a candidate's filing fee is paid with a check, draft, or similar negotiable instrument for which sufficient funds are not available or that is dishonored, notice to the candidate of the worthless instrument must be sent by the filing officer via registered mail no later than immediately upon the closing of the filing deadline with return receipt requested. The candidate will have five days from the time the filing officer receives proof of receipt to issue a check or other instrument for which sufficient funds are available. The candidate issuing the worthless instrument is liable for a service charge pursuant to section 604.113. If adequate payment is not made, the name of the candidate must not appear on any official ballot and the candidate is liable for all costs incurred by election officials in removing the name from the ballot.

Sec. 14. Minnesota Statutes 2002, section 211A.04, is amended to read:

211A.04 [~~SECRETARY OF STATE'S~~ CAMPAIGN FINANCE BOARD DUTIES.]

Subdivision 1. [REPORT FORMS.] The ~~secretary of state~~ Campaign Finance and Public Disclosure Board shall prepare blanks for reports required by section 211A.02. Copies must be furnished through the county auditor or otherwise, as the ~~secretary of state~~ board finds expedient, to a committee upon request or to a candidate upon filing for office.

Sec. 15. Minnesota Statutes 2002, section 211A.05, is amended to read:

211A.05 [FAILURE TO FILE STATEMENT.]

Subdivision 1. [PENALTY.] A candidate who intentionally fails to file a report required by section 211A.02 is guilty of a misdemeanor. The treasurer of a committee formed to promote or defeat a ballot question who intentionally fails to file a report required by section 211A.02 is guilty of a misdemeanor. Each candidate or treasurer of a committee formed to promote or defeat a ballot question shall certify to the filing officer that all reports required by section 211A.02 have been submitted to the filing officer or that the candidate or committee has not received contributions or made disbursements exceeding $750 in the calendar year. The certification shall be submitted to the filing officer no later than seven days after the general or special election. The ~~secretary of state~~ Campaign Finance and Public Disclosure Board shall prepare blanks for this certification. An officer who issues a certificate of election to a candidate who has not certified that all reports required by section 211A.02 have been filed is guilty of a misdemeanor.

Subd. 2. [NOTICE OF FAILURE TO FILE.] If a candidate or committee fails to file a report on the date it is due, the filing officer shall immediately notify the ~~county attorney of the county where the candidate resides or where the committee headquarters is located~~ Campaign Finance and Public Disclosure Board. The ~~county attorney~~ board shall then immediately notify the candidate or committee of the failure to file. If a report is not filed within ten days after the notification is mailed, the ~~county attorney~~ filing officer shall ~~proceed~~ file a complaint with the board under section ~~211A.08~~ 10A.61.

Sec. 16. [211A.085] [COUNTY ATTORNEY AUTHORITY.]

A county attorney may prosecute any violation of this chapter.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6314

Sec. 17. Minnesota Statutes 2002, section 211B.14, is amended to read:

211B.14 [DIGEST OF LAWS.]

The ~~secretary of state~~ Campaign Finance and Public Disclosure Board, with the approval of the attorney general, shall prepare and print an easily understandable digest of this chapter and annotations of it. The digest may include other related laws and annotations at the discretion of the ~~secretary of state~~ board.

The ~~secretary of state~~ board shall distribute the digest to candidates and committees through the county auditor or otherwise as the ~~secretary of state~~ board considers expedient. A copy of the digest and, if appropriate, a financial reporting form and a certification of filing form must be distributed to each candidate by the filing officer at the time that the candidate's affidavit of candidacy is filed.

Sec. 18. Minnesota Statutes 2002, section 211B.15, subdivision 12, is amended to read:

Subd. 12. [REPORTS REQUIRED.] The total amount of an expenditure or contribution for any one project permitted by subdivisions 9 and 11 that is more than $200, together with the date, purpose, and the names and addresses of the persons receiving the contribution or expenditures, must be reported to the ~~secretary of state~~ Campaign Finance and Public Disclosure Board. The reports must be filed on forms provided by the ~~secretary of state~~ board on the dates required for committees under section 211A.02. Failure to file is a misdemeanor.

Sec. 19. [211B.165] [COUNTY ATTORNEY AUTHORITY.]

A county attorney may prosecute any violation of this chapter.

Sec. 20. Minnesota Statutes 2002, section 383B.055, subdivision 2, is amended to read:

Subd. 2. The ~~county filing officer of Hennepin County~~ Campaign Finance and Public Disclosure Board shall develop forms for all statements and reports required to be filed under sections 383B.041 to 383B.054. The ~~filing officer~~ board shall furnish sufficient copies of the forms to all officers with whom candidates file affidavits or applications of candidacy and nominating petitions.

Sec. 21. [APPROPRIATION.]

$82,500 is appropriated from the general fund to the Campaign Finance and Public Disclosure Board for the purposes of sections 1 to 24. This sum is available until June 30, 2005.

Sec. 22. [REVISOR'S INSTRUCTION.]

The revisor of statutes shall renumber Minnesota Statutes, section 211B.11, subdivision 1, as section 204C.06, subdivision 8.

Sec. 23. [REPEALER.]

Minnesota Statutes 2002, sections 211A.08, subdivisions 1 and 2; and 211B.16, subdivisions 1 and 2, are repealed.

Sec. 24. [EFFECTIVE DATE.]

Sections 2 and 4 are effective January 1, 2006. Section 6 is effective January 1, 2005. Sections 3, 5, 12 to 20, 22, and 23 are effective July 1, 2004. Sections 7 to 11 are effective July 1, 2004, for complaints regarding candidates for legislative office and July 1, 2005, for all other matters. Section 21 is effective the day following final enactment."

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6315

Delete the title and insert:

"A bill for an act relating to state government; appropriating money for the general legislative and administrative expenses of state government; modifying provisions related to state government operations; establishing the Fair Campaign Reform Act; modifying fair campaign practices; modifying teachers retirement provisions; amending Minnesota Statutes 2002, sections 3.23; 3.98, subdivision 3; 10A.02, subdivisions 1, 2, 3, 7, 12; 10A.31, subdivision 4; 11A.24, subdivision 6; 13.635, by adding a subdivision; 15.16, subdivision 5; 16A.102, subdivision 2, by adding a subdivision; 16A.103, subdivision 1a; 16A.53, subdivision 1, by adding subdivisions; 16A.531, by adding a subdivision; 16A.641, subdivision 2; 16B.24, subdivision 3; 16B.31, subdivision 3; 16B.55, subdivision 3; 85A.02, subdivision 5a; 115A.557, subdivision 4; 116O.071, subdivision 3; 116P.08, subdivision 3; 144.701, subdivision 4; 193.29, subdivision 3; 193.30; 193.31; 201.275; 211A.04; 211A.05; 211B.14; 211B.15, subdivisions 1, 12; 245.90; 270.063, subdivision 1; 270.71; 354A.08; 354A.12, subdivisions 3a, 3d, by adding a subdivision; 354A.28, subdivision 9; 383B.055, subdivision 2; Minnesota Statutes 2003 Supplement, sections 16A.102, subdivision 1; 16A.11, subdivision 3; 84.026; 116J.966, subdivision 1; 192.501, subdivision 2; 204B.11, subdivision 1; 354A.12, subdivision 3b; proposing coding for new law in Minnesota Statutes, chapters 10A; 211A; 211B; 354A; repealing Minnesota Statutes 2002, sections 211A.08, subdivisions 1, 2; 211B.16, subdivisions 1, 2; Minnesota Statutes 2003 Supplement, section 16A.151, subdivision 5."

With the recommendation that when so amended the bill pass.

The report was adopted.

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

H. F. No. 3061, A bill for an act relating to the State Board of Investment; authorizing increased State Board of Investment participation in venture capital investments; classifying data related to certain venture capital investments; appropriating money in the event of certain venture capital investment shortfalls; amending Minnesota Statutes 2002, sections 11A.24, subdivision 6, by adding a subdivision; 13.635, by adding a subdivision.

Reported the same back with the following amendments:

Page 2, line 19, delete the new language

Page 3, delete lines 4 to 15

Pages 3 and 4, delete section 2

Renumber the sections in sequence

Delete the title and insert:

"A bill for an act relating to the State Board of Investment; classifying data related to certain venture capital investments; amending Minnesota Statutes 2002, sections 11A.24, subdivision 6; 13.635, by adding a subdivision."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6316

Rhodes from the Committee on Governmental Operations and Veterans Affairs Policy to which was referred:

H. F. No. 3089, A bill for an act relating to sports stadiums; providing for a process to build stadiums for the use of the Minnesota Twins and the Minnesota Vikings; establishing the Minnesota Stadium Authority; authorizing revenue bonds; authorizing certain local tax and revenues in certain communities; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 473; repealing Minnesota Statutes 2002, sections 473I.01; 473I.02; 473I.03; 473I.04; 473I.05; 473I.06; 473I.07; 473I.08; 473I.09; 473I.10; 473I.11; 473I.12; 473I.13.

Reported the same back with the following amendments:

Page 2, line 18, after "authority" insert "or authorities"

Page 2, line 35, delete "and"

Page 2, after line 35, insert:

"(2) one member appointed by and serving at the pleasure of each of the following: the speaker of the house of representatives; the majority leader of the senate; and the minority leaders of the house of representatives and the senate; and"

Page 2, line 36, delete "(2)" and insert "(3)"

Page 3, line 1, after "members" insert "appointed under paragraph (a), clauses (1) and (3)"

Page 3, line 11, after the period, insert "Except to the extent otherwise explicitly provided in sections 473.75 to 473.758, the authority is a metropolitan agency and is governed by the laws applicable to metropolitan agencies. The authority is not a state agency."

Page 3, line 15, delete "gift" and insert "monetary or land contribution"

Page 4, line 27, delete "gifts of money" and insert "monetary contributions"

Page 4, line 32, delete "gift" and insert "monetary contributions"

Page 4, line 33, delete "gifts" and insert "monetary contributions"

Page 4, line 35, delete "council" and insert "authority"

Page 6, line 23, after the comma, insert "and"

Page 6, line 24, delete everything after "licenses" and insert a period

Page 6, line 25, delete everything before "Each"

Page 7, line 35, delete "Metropolitan" and insert "Minnesota"

Page 8, line 11, before "The" insert "In making determinations about the location of the stadiums, the authority must determine and consider the estimated cost to the public in constructing necessary public infrastructure for each location under consideration."

Page 8, line 22, delete everything after the headnote and insert "(a) The lease or use agreements must provide that if the franchise is sold during the term of the agreement, then any portion of the sale price that is attributable to enactment of this act or to public money spent to develop the stadium used by the franchise's team must be returned to the public for deposit in a reserve fund for improvements to the stadium.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6317

(b) The lease or use agreement must provide that the franchise cannot be sold during the term of the agreement without approval of the authority unless:

(1) the franchise owner agrees with the authority on the portion of the sales price that will be returned to the public under paragraph (a); or

(2) the franchise owner agrees that the amount that will be returned to the public under paragraph (a) will be determined by a neutral party, selected by a method specified in the lease or use agreement.

Subd. 13. [ACCESS TO BOOKS AND RECORDS.] The authority must seek a provision in the lease or use agreements that provides the authority access to those financial books and records of the franchise that the authority deems necessary to carry out its duties under this act and to enforce the terms of any lease or use agreements entered into under this section. Any financial information obtained by the authority under this subdivision is nonpublic data under section 13.02, subdivision 9."

Page 8, delete lines 23 to 28

Renumber the remaining subdivisions in sequence

Page 9, after line 20, insert:

"Subd. 21. [SITE SELECTION COSTS.] To cover the authority's startup and site selection costs, the authority may assess each professional team up to $400,000. The Metropolitan Sports Facilities Commission may provide staff and other assistance to the authority."

Page 10, line 25, after "at" insert "professional"

Page 10, line 29, before "baseball" insert "professional"

Page 11, line 3, after "to" insert "professional"

Page 11, line 5, after the first "at" insert "professional"

Page 11, line 8, before "football" insert "professional"

Page 11, line 16, delete "473.557" and insert "473.757"

Page 16, line 35, delete "473.558" and insert "473.758"

Delete the title and insert:

"A bill for an act relating to sports stadiums; providing for a process to build stadiums for the use of the Minnesota Twins and the Minnesota Vikings; establishing the Minnesota Stadium Authority; authorizing revenue bonds; authorizing certain taxes and revenues; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 473; repealing Minnesota Statutes 2002, sections 473I.01; 473I.02; 473I.03; 473I.04; 473I.05; 473I.06; 473I.07; 473I.08; 473I.09; 473I.10; 473I.11; 473I.12; 473I.13."

With the recommendation that when so amended the bill be re-referred to the Committee on Taxes without further recommendation.

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. No. 2684 was read for the second time.

Journal of the House - 83rd Day - Wednesday, March 31, 2004 - Top of Page 6318

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Cornish, Gunther and Finstad introduced:

H. F. No. 3152, A bill for an act relating to taxation; sales and use; exempting sales of stoves that burn certain biomass fuels; amending Minnesota Statutes 2002, section 297A.67, by adding a subdivision.