Journal of the House - 37th Day - Tuesday, April 21, 2009

A quorum was present.

Anderson, B.; Atkins; Demmer; Howes; Lieder; Poppe and Slocum were excused.

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

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REPORTS OF CHIEF CLERK

S. F. No. 615 and H. F. No. 665, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Swails moved that the rules be so far suspended that S. F. No. 615 be substituted for H. F. No. 665 and that the House File be indefinitely postponed. The motion prevailed.

REPORTS OF STANDING COMMITTEES AND DIVISIONS

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

H. F. No. 2, A bill for an act relating to education; providing for policy and funding for family, adult, and prekindergarten through grade 12 education including general education, education excellence, special programs, facilities and technology, libraries, nutrition, accounting, self-sufficiency and lifelong learning, state agencies, pupil transportation, school finance system changes, forecast adjustments, and technical corrections; providing for advisory groups; requiring reports; appropriating money; amending Minnesota Statutes 2008, sections 6.74; 16A.06, subdivision 11; 120A.40; 120B.02; 120B.021, subdivision 1; 120B.022, subdivision 1; 120B.023, subdivision 2; 120B.11, subdivision 5; 120B.13; 120B.132; 120B.30; 120B.31; 120B.35; 120B.36; 121A.15, subdivision 8; 121A.41, subdivisions 7, 10; 121A.43; 122A.07, subdivisions 2, 3; 122A.18, subdivision 4; 122A.31, subdivision 4; 122A.40, subdivisions 6, 8; 122A.41, subdivisions 3, 5; 122A.413, subdivision 2; 122A.414, subdivisions 2, 2b; 122A.60, subdivisions 1a, 2; 122A.61, subdivision 1; 123A.05; 123A.06; 123A.08; 123B.02, subdivision 21; 123B.03, subdivisions 1, 1a; 123B.10, subdivision 1; 123B.14, subdivision 7; 123B.143, subdivision 1; 123B.51, by adding a subdivision; 123B.53, subdivision 5; 123B.57, subdivision 1; 123B.59, subdivisions 2, 3, 3a; 123B.70, subdivision 1; 123B.71, subdivisions 8, 9, 12; 123B.75, subdivision 5; 123B.76, subdivision 3; 123B.77, subdivision 3; 123B.79, subdivision 7; 123B.81, subdivisions 3, 4, 5; 123B.83, subdivision 3; 123B.92, subdivisions 1, 5; 124D.095, subdivisions 2, 3, 4, 7, 10; 124D.10; 124D.11, subdivisions 4, 9; 124D.111, subdivision 3; 124D.128, subdivisions 2, 3; 124D.42, subdivision 6, by adding a subdivision; 124D.4531; 124D.59, subdivision 2; 124D.65, subdivision 5; 124D.68, subdivisions 2, 3, 4, 5; 124D.83, subdivision 4; 124D.86, subdivisions 1, 1a, 1b; 125A.02; 125A.07; 125A.08; 125A.091; 125A.11, subdivision 1; 125A.15; 125A.28; 125A.51; 125A.56; 125A.57, subdivision 2; 125A.62, subdivision 8; 125A.63, subdivisions 2, 4; 125A.76, subdivisions 1, 5; 125A.79, subdivision 7; 125B.26; 126C.01, by adding subdivisions; 126C.05, subdivisions 1, 2, 3, 5, 6, 8, 15, 16, 17, 20; 126C.10, subdivisions 1, 2, 2a, 3, 4, 6, 13, 14, 18, 24, 34, by adding subdivisions; 126C.13, subdivisions 4, 5; 126C.15, subdivisions 2, 4; 126C.17, subdivisions 1, 5, 6, 9; 126C.20; 126C.40, subdivisions 1, 6; 126C.41, subdivision 2; 126C.44; 127A.08, by adding a subdivision; 127A.441; 127A.45, subdivisions 2, 3, 13, by adding a subdivision; 127A.47, subdivisions 5, 7; 127A.51; 134.31, subdivision 4a, by adding a subdivision; 169.011, subdivision 71; 169.443, subdivision 9; 169.4501, subdivision 1; 169.4503, subdivision 20, by adding a subdivision; 169.454, subdivision 13; 169A.03, subdivision 23; 171.01, subdivision 22; 171.02, subdivisions 2, 2a, 2b; 171.05, subdivision 2; 171.17, subdivision 1; 171.22, subdivision 1; 171.321, subdivisions 1, 4, 5; 181A.05, subdivision 1; 275.065, subdivisions 3, 6; 299A.297; 471.975; 475.58, subdivision 1; Laws 2007, chapter 146, article 1, section 24, subdivisions 2, as amended, 6, as amended, 8, as amended; article 2, section 46, subdivision 6, as amended; article 3, section 24, subdivision 4, as amended; article 4, section 16, subdivisions 2, as amended, 6, as amended; article 5, section 13, subdivisions 2, as amended, 3, as amended; article 9, section 17, subdivisions 2, as amended, 13, as amended; Laws 2008, chapter 363, article 2, section 46, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 120B; 123B; 125A; 126C; 127A; repealing Minnesota Statutes 2008, sections 120B.362; 120B.39; 121A.27; 121A.66; 121A.67, subdivision 1; 122A.628; 122A.75; 123B.54; 123B.57, subdivisions 3, 4, 5; 123B.591; 124D.091; 125A.03; 125A.05; 125A.18; 125A.76, subdivision 4; 125A.79, subdivision 6; 126C.10,

Journal of the House - 37th Day - Tuesday, April 21, 2009 - Top of Page 3113

subdivisions 2b, 13a, 13b, 24, 25, 26, 27, 28, 29, 30, 31, 31a, 31b, 32, 33, 34, 35, 36; 126C.12; 126C.126; 127A.50; 275.065, subdivisions 5a, 6b, 6c, 8, 9, 10; Minnesota Rules, parts 3525.0210, subparts 5, 6, 9, 13, 17, 29, 30, 34, 43, 46, 47; 3525.0400; 3525.1100, subpart 2, item F; 3525.2445; 3525.2900, subpart 5; 3525.4220.

Reported the same back with the following amendments:

Page 3, line 24, after the first comma, insert "boiler operator training,"

Page 4, line 19, after "efforts" insert ", including boiler operator training"

Page 12, line 2, after "July 1," insert "1992, and to pay for health insurance or unreimbursed medical expenses for licensed and nonlicensed employees who have terminated services in the employing district and withdrawn from active teaching service or other active service, as applicable before July 1,"

Page 52, line 10, strike everything after "(B)"

Page 52, line 11, delete the new language and strike the old language

Page 82, line 30, after "fiscal" insert ", operational,"

Page 82, line 34, delete the new language and insert "up to $50 per student up to a maximum of $10,000 in fiscal year 2010, $12,000 in fiscal year 2011, $14,000 in fiscal year 2012, and $15,000 in fiscal year 2013"

Page 82, line 35, delete everything after "(c)"

Page 82, line 36, delete "formula allowance for that year." and delete "2013" and insert "2014" and delete "four" and insert "three"

Page 83, line 1, delete "2013" and insert "2014"

Page 83, line 2, delete ".015" and insert ".010"

Page 83, delete lines 5 to 16

Page 83, line 17, delete "(e)" and insert "(d)"

Page 83, line 19, delete "(f)" and insert "(e)"

Page 193, line 33, before "fiscal" insert "current" and strike "in which the levy is certified"

Page 220, after line 18, insert:

"Section 1. Minnesota Statutes 2008, section 120A.22, subdivision 7, is amended to read:

Subd. 7. Education records. (a) A district, a charter school, or a nonpublic school that receives services or aid under sections 123B.40 to 123B.48 from which a student is transferring must transmit the student's educational records, within ten business days of a request, to the district, the charter school, or the nonpublic school in which the student is enrolling. Districts, charter schools, and nonpublic schools that receive services or aid under sections 123B.40 to 123B.48 must make reasonable efforts to determine the district, the charter school, or the nonpublic school in which a transferring student is next enrolling in order to comply with this subdivision.

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(b) A closed charter school must transfer the student's educational records, within ten business days of the school's closure, to the student's school district of residence where the records must be retained unless the records are otherwise transferred under this subdivision.

(c) A school district, a charter school, or a nonpublic school that receives services or aid under sections 123B.40 to 123B.48 that transmits a student's educational records to another school district or other educational entity, charter school, or nonpublic school to which the student is transferring must include in the transmitted records information about any formal suspension, expulsion, and exclusion disciplinary action under sections 121A.40 to 121A.56. The district, the charter school, or the nonpublic school that receives services or aid under sections 123B.40 to 123B.48 must provide notice to a student and the student's parent or guardian that formal disciplinary records will be transferred as part of the student's educational record, in accordance with data practices under chapter 13 and the Family Educational Rights and Privacy Act of 1974, United States Code, title 20, section 1232(g).

(d) Notwithstanding section 138.17, a principal or chief administrative officer must remove from a student's educational record and destroy a probable cause notice received under section 260B.171, subdivision 5, or paragraph ~~(d)~~ (e), if one year has elapsed since the date of the notice and the principal or chief administrative officer has not received a disposition or court order related to the offense described in the notice. This paragraph does not apply if the student no longer attends the school when this one-year period expires.

(e) A principal or chief administrative officer who receives a probable cause notice under section 260B.171, subdivision 5, or a disposition or court order, must include a copy of that data in the student's educational records if they are transmitted to another school, unless the data are required to be destroyed under paragraph ~~(c)~~ (d) or section 121A.75."

Renumber the sections in sequence

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass.

The report was adopted.

Carlson from the Committee on Finance to which was referred:

H. F. No. 877, A bill for an act relating to environment; establishing a grant program for idling reduction technology purchases; proposing coding for new law in Minnesota Statutes, chapter 116.

Reported the same back with the following amendments:

Page 2, line 21, delete "State" and insert "National, Smartway, or Emerging Technologies"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1122, A bill for an act relating to appropriations; appropriating money for agriculture, the Board of Animal Health, Rural Finance Authority, veterans, and the military; changing certain agricultural and animal health requirements and programs; establishing a program; eliminating a sunset; requiring certain studies and reports; amending Minnesota Statutes 2008, sections 3.737, subdivision 1; 3.7371, subdivision 3; 13.643, by adding a subdivision; 17.03, subdivision 12; 17.115, subdivision 2; 18.75; 18.76; 18.77, subdivisions 1, 3, 5, by adding subdivisions; 18.78, subdivision 1, by adding a subdivision; 18.79; 18.80, subdivision 1; 18.81, subdivision 3, by adding subdivisions; 18.82, subdivisions 1, 3; 18.83; 18.84, subdivisions 1, 2, 3; 18.86; 18.87; 18.88; 18B.01, subdivision 8, by adding subdivisions; 18B.065, subdivisions 1, 2, 2a, 3, 7, by adding subdivisions; 18B.26, subdivisions 1, 3; 18B.31, subdivisions 3, 4; 18B.37, subdivision 1; 18C.415, subdivision 3; 18C.421; 18C.425, subdivisions 4, 6; 18E.03, subdivisions 2, 4; 18E.06; 18H.02, subdivision 12a, by adding subdivisions; 18H.07, subdivisions 2, 3; 18H.09; 18H.10; 28A.085, subdivision 1; 28A.21, subdivision 5; 31.94; 32.394, subdivision 8; 41A.09, subdivisions 2a, 3a; 41B.039, subdivision 2; 41B.04, subdivision 8; 41B.042, subdivision 4; 41B.043, subdivision 1b; 41B.045, subdivision 2; 43A.11, subdivision 7; 97A.045, subdivision 1; 171.06, subdivision 3; 171.07, by adding a subdivision; 171.12, by adding a subdivision; 197.455, subdivision 1; 197.46; 198.003, by adding subdivisions; 239.791, subdivisions 1, 1a; 336.9-601; 343.11; 550.365, subdivision 2; 559.209, subdivision 2; 582.039, subdivision 2; 583.215; 626.8517; Laws 2008, chapter 297, article 2, section 26, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 17; 18; 18B; 31; 41A; 192; 198; repealing Minnesota Statutes 2008, sections 17.49, subdivision 3; 18G.12, subdivision 5; 38.02, subdivisions 3, 4; 41.51; 41.52; 41.53; 41.55; 41.56; 41.57; 41.58, subdivisions 1, 2; 41.59, subdivision 1; 41.60; 41.61, subdivision 1; 41.62; 41.63; 41.65; Minnesota Rules, part 1505.0820.

Reported the same back with the following amendments:

Page 50, line 34, reinstate the stricken language

Page 51, lines 1 to 23, reinstate the stricken language

With the recommendation that when so amended the bill pass.

The report was adopted.

Carlson from the Committee on Finance to which was referred:

H. F. No. 1221, A bill for an act relating to transportation; bridges; establishing Stillwater lift bridge endowment account; proposing coding for new law in Minnesota Statutes, chapter 165.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [165.15] STILLWATER LIFT BRIDGE ENDOWMENT ACCOUNT.

Subdivision 1. Account established. The Stillwater lift bridge endowment account is established in the state treasury. The account may consist of appropriations made by the state of Minnesota or Wisconsin and may include federal funds. The account may also receive private contributions, gifts, or grants under section 16A.013. Any interest or profit accruing from investment of these sums is credited to the account.

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Subd. 2. Use of funds. (a) Income derived from the investment of principal in the account may be used by the commissioner of transportation for operations and routine maintenance of the Stillwater lift bridge. No money from this account may be used for any purposes except those described in this section, and no money from this account may be transferred to any other account in the state treasury without specific legislative authorization. Any money transferred from the trunk highway fund may only be used for trunk highway purposes. For the purposes of this section:

(1) "Income" is the amount of interest on debt securities and dividends on equity securities. Any gains or losses from the sale of securities must be added to the principal of the account.

(2) "Routine maintenance" means activities that are predictable and repetitive, but not activities that would constitute major repairs or rehabilitation.

(b) Investment management fees incurred by the State Board of Investment are eligible expenses for reimbursement from the account.

Subd. 3. Appropriation. Income derived from the investment of principal in the account is appropriated annually to the commissioner of transportation for the purposes described in this section.

Subd. 4. Financial compliance. The commissioner of transportation shall ensure that the account complies with the regulations in OMB circulars A87, Cost Principles for State, Local and Indian Tribal Governments, and A122, Cost Principles for Non-Profit Organizations, of the United States Office of Management and Budget (OMB).

Subd. 5. Investment. The State Board of Investment, in consultation with the commissioner of transportation, shall invest money in the account under section 11A.24.

Subd. 6. Demolition. If the commissioner determines, in consultation with the State Historic Preservation Office, that it is necessary to demolish the Stillwater lift bridge, the principal in the account may be spent to pay for demolition of the bridge, and is appropriated to the commissioner of transportation only for that purpose, except that only funds originally contributed by the state or federal government can be used to pay for demolition. Any money remaining in the account after demolition must be used to pay for the preservation of other historic bridges in consultation with the State Historic Preservation Office.

Subd. 7. Audits. The account is subject to audit by the legislative auditor.

Subd. 8. Reports required. The commissioner of transportation shall report annually to the chair and ranking minority member of each legislative committee with jurisdiction over transportation on the endowment account. At a minimum, the report must include detailed revenue and expenditure information."

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.

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Carlson from the Committee on Finance to which was referred:

H. F. No. 2038, A bill for an act relating to the budget reserve; modifying priorities for additional revenues in general fund forecasts; requiring a report; appropriating money; amending Minnesota Statutes 2008, sections 4A.01; 16A.103, subdivisions 1a, 1b, by adding a subdivision; 16A.11, subdivision 1, by adding a subdivision; 16A.152, subdivision 2, by adding a subdivision.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 16A.152, is amended by adding a subdivision to read:

Subd. 8. Report on budget reserve percentage. (a) The commissioner of finance must periodically review the formula developed as part of the Budget Trends Study Commission authorized by Laws 2007, chapter 148, article 2, section 81, to estimate the percentage of the preceding biennium's general fund expenditures and transfers recommended as a budget reserve.

(b) The commissioner must annually review the variables and coefficients in the formula used to model the base of the general fund taxes and the mix of taxes that provide revenues to the general fund. If the commissioner determines that the variables and coefficients have changed enough to result in a change in the percentage of the preceding biennium's general fund expenditures and transfers recommended as a budget reserve, the commissioner must update the variables and coefficients in the formula to reflect the current base and mix of general fund taxes.

(c) Every ten years, the commissioner must review the methodology underlying the formula, taking into consideration relevant economic literature from the past ten years, and determine if the formula remains adequate as a tool for estimating the percentage of the preceding biennium's general fund expenditures and transfers recommended as a budget reserve. If the commissioner determines that the methodology underlying the formula is outdated, the commissioner must revise the formula.

(d) By January 15 of each year, the commissioner must report to the chairs of the house of representatives Committee on Ways and Means and the senate Committee on Finance, in compliance with sections 3.195 and 3.197, on the percentage of the preceding biennium's general fund expenditures and transfers recommended as a budget reserve. The report must specify:

(1) if the commissioner updated the variables and coefficients in the formula to reflect significant changes to either the base of one or more general fund taxes or to the mix of taxes that provide revenues to the general fund as provided in paragraph (b);

(2) if the commissioner revised the formula after determining the methodology was outdated as provided in paragraph (c); and

(3) if the percentage of the preceding biennium's general fund expenditures and transfers recommended as a budget reserve has changed as a result of an update of or a revision to the formula.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 2. [16B.90] MILESTONES REPORT REQUIRED.

The Department of Administration must establish a statewide system of economic, social, and environmental performance measures. The milestones must provide the economic, social, and environmental information necessary for public and elected officials to understand and evaluate the sustainability of the state's long-term trends. The commissioner must report on the trends and their implications each year. The commissioner may contract for the development of information and measures.

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Sec. 3. CASH FLOW STUDY.

By January 15, 2010, the commissioner of finance must submit to the chair of the Finance Committee in the senate and the chair of the Ways and Means Committee in the house of representatives, a report on the cash flow condition of the general fund for the fiscal year 2010-2011 biennium and the following biennium, including an assessment of the options for improving the long-term cash flow of the state through changes in the timing of general fund payment dates, revenue collections, or other changes. In addition, the report should identify all major provisions of law that result in state expenditures or revenues being recognized in budget documents in a fiscal year earlier or later than the fiscal year in which the obligation to pay state expenses was incurred or the liability to pay state taxes was incurred."

Delete the title and insert:

"A bill for an act relating to the budget reserve; requiring periodic review of the formula used for the budget reserve percentage; requiring reports; amending Minnesota Statutes 2008, section 16A.152, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 16B."

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.

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

H. F. No. 2088, A bill for an act relating to early childhood education and child care; making changes to early childhood education; youth prevention; self-sufficiency and lifelong learning; child care assistance; appropriating money; amending Minnesota Statutes 2008, sections 119A.52; 119B.09, subdivision 7; 119B.13, subdivisions 1, 3a, 6; 119B.21, subdivisions 5, 10; 119B.231, subdivisions 2, 3, 4; 124D.13, subdivision 13; 124D.135, subdivision 3; 124D.15, subdivisions 1, 3; 124D.19, subdivisions 10, 14; 124D.522; proposing coding for new law in Minnesota Statutes, chapters 4; 124D.

Reported the same back with the following amendments:

Page 1, line 13, delete "OFFICE" and insert "DIRECTOR"

Page 1, line 14, delete "An Office of Early Learning" and insert "A director of early learning"

Page 1, line 20, delete "of the Office of Early Learning" and insert "of early learning" and after the third "the" insert "governor and the"

Page 1, line 23, delete everything after "(1)"

Page 1, line 24, delete "and child care and"

Page 2, line 27, delete "of the Office of Early Learning"

Page 2, line 29, delete "of the Office of Early Learning"

Page 7, delete section 9

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Page 8, line 21, delete the colon

Page 8, line 22, delete "(1)"

Page 8, line 28, delete "; and" and insert a period

Page 8, delete lines 29 to 32

Page 9, delete lines 1 and 2

Renumber the sections in sequence

With the recommendation that when so amended the bill pass.

The report was adopted.

Carlson from the Committee on Finance to which was referred:

H. F. No. 2251, A bill for an act relating to state government finance; providing federal stimulus oversight funding for certain state agencies; appropriating money.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. SUMMARY OF APPROPRIATIONS.

The amount shown in this section summarizes direct appropriations, by fund, made in this act.

2009

General $1,084,000

Sec. 2. APPROPRIATIONS.

The sums shown in the column marked "Appropriations" are appropriated to the agencies and for the purposes specified in this act. The appropriations are from the general fund. The figure "2009" used in this act means that the appropriations listed under it are available for the fiscal year ending June 30, 2009.

APPROPRIATIONS

Available for the Year

Ending June 30

2009

Sec. 3. FINANCE $700,000

Federal Stimulus Money Reporting and Oversight

This appropriation is to provide for staff, computers, professional and technical services, and other operating expenses necessary to comply with the reporting, monitoring, and financial control and transparency requirements of the American Recovery and

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Reinvestment Act (ARRA) of 2009. This appropriation may be used to cover costs incurred by other state agencies and financial partners working in cooperation with the commissioner of finance to comply with the ARRA transparency requirements, including local units of government, higher education institutions, and nonprofit organizations. This appropriation must not be used to support the costs of administering specific programs funded by the ARRA. This is a onetime appropriation and is available until June 30, 2011.

Sec. 4. STATE AUDITOR $384,000

Federal Stimulus Money Reporting and Oversight

This appropriation is to provide temporary funding for staff, computers, and other operating expenses necessary to conduct special investigations and other oversight related to ensuring compliance with the reporting, monitoring, and financial control and transparency requirements of the American Recovery and Reinvestment Act (ARRA) of 2009. This is a onetime appropriation and is available until June 30, 2011.

Sec. 5. LOCAL SHARE PAYMENT MODIFICATION REQUIRED FOR ARRA COMPLIANCE.

Effective retroactively from October 1, 2008, through June 30, 2009, the state shall reduce Hennepin County's monthly contribution to the nonfederal share of medical assistance costs to the percentage required on September 1, 2008, to meet federal requirements for enhanced federal match under the American Reinvestment and Recovery Act of 2009. Notwithstanding the requirements of Minnesota Statutes 2008, section 256B.19, subdivision 1c, paragraph (d), for the period beginning October 1, 2008, to June 30, 2009, Hennepin County's monthly payment under that provision is reduced to $434,688.

Sec. 6. CAPITATION PAYMENTS.

Effective retroactively from October 1, 2008, through December 31, 2010, the commissioner of human services shall increase capitation payments made to the Metropolitan Health Plan under Minnesota Statutes 2008, section 256B.19, subdivision 1c, paragraph (c) by $6,800,000. The increased amount includes federal matching funds.

Sec. 7. FISCAL STABILIZATION ACCOUNT.

The fiscal stabilization account is created in the federal fund in the state treasury. All money received by the state under title XIV of the American Recovery and Reinvestment Act of 2009, Public Law 111-5, division A, must be credited to the fiscal stabilization account. Money in the account must not be spent except pursuant to a direct appropriation by law. When all money credited and to be credited to the account from the American Recovery and Reinvestment Act of 2009 has been spent, the commissioner of finance shall close the account.

Sec. 8. EFFECTIVE DATE.

This act is effective the day following final enactment."

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Delete the title and insert:

"A bill for an act relating to state government finance; providing federal stimulus oversight funding for certain state agencies; establishing a fiscal stabilization account; appropriating money."

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.

Carlson from the Committee on Finance to which was referred:

S. F. No. 99, A bill for an act relating to traffic regulations; requiring restraint of child under age eight and shorter than four feet nine inches while passenger in motor vehicle and modifying seat belt requirements accordingly; amending Minnesota Statutes 2008, sections 169.685, subdivision 5; 169.686, subdivision 1.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2008, section 169.685, subdivision 5, is amended to read:

Subd. 5. Violation; petty misdemeanor. (a) Every motor vehicle operator, when transporting a child who is both under the age of ~~four~~ eight and shorter than four feet nine inches on the streets and highways of this state in a motor vehicle equipped with factory-installed seat belts, shall equip and install for use in the motor vehicle, according to the manufacturer's instructions, a child passenger restraint system meeting federal motor vehicle safety standards.

(b) No motor vehicle operator who is operating a motor vehicle on the streets and highways of this state may transport a child who is both under the age of ~~four~~ eight and shorter than four feet nine inches in a seat of a motor vehicle equipped with a factory-installed seat belt, unless the child is properly fastened in the child passenger restraint system. Any motor vehicle operator who violates this subdivision is guilty of a petty misdemeanor and may be sentenced to pay a fine of not more than $50. The fine ~~may~~ must be waived ~~or the amount reduced~~ if the motor vehicle operator produces evidence that within 14 days after the date of the violation a child passenger restraint system meeting federal motor vehicle safety standards was purchased or obtained for the exclusive use of the operator.

(c) For the purposes of this section, "child passenger restraint system" means any device that meets the standards of the United States Department of Transportation; is designed to restrain, seat, or position children; and includes a booster seat.

~~(c)~~ (d) Of the fines collected for violations of this subdivision:

(1) the first $4,000 must be deposited in the state treasury and credited to the emergency medical services relief account; and

(2) the remainder must be deposited in the state treasury and credited to a special account to be known as the Minnesota child passenger restraint and education account.

EFFECTIVE DATE. This section is effective July 1, 2009, for offenses committed on or after that date.

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Sec. 2. Minnesota Statutes 2008, section 169.686, subdivision 1, is amended to read:

Subdivision 1. Seat belt requirement. (a) A properly adjusted and fastened seat belt, including both the shoulder and lap belt when the vehicle is so equipped, shall be worn by:

(1) the driver of a passenger vehicle or commercial motor vehicle;

(2) a passenger riding in the front seat of a passenger vehicle or commercial motor vehicle; and

(3) a passenger riding in any seat of a passenger vehicle who (i) is not required to be transported in a child passenger restraint system under section 169.685, subdivision 5, and (ii) is ~~older than three but~~ younger than 11 years of age.

(b) A person who is 15 years of age or older and who violates paragraph (a), clause (1) or (2), is subject to a fine of $25. The driver of the passenger vehicle or commercial motor vehicle in which the violation occurred is subject to a $25 fine for a violation of paragraph (a), clause (2) or (3), by a child of the driver under the age of 15 or any child under the age of 11. A peace officer may not issue a citation for a violation of this section unless the officer lawfully stopped or detained the driver of the motor vehicle for a moving violation other than a violation involving motor vehicle equipment. The Department of Public Safety shall not record a violation of this subdivision on a person's driving record.

EFFECTIVE DATE. This section is effective July 1, 2009, and applies to offenses committed on or after that date."

Delete the title and insert:

"A bill for an act relating to traffic regulations; requiring restraint of child under age eight and shorter than four feet nine inches while passenger in motor vehicle and modifying seat belt requirements accordingly; amending Minnesota Statutes 2008, sections 169.685, subdivision 5; 169.686, subdivision 1."

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.

Carlson from the Committee on Finance to which was referred:

S. F. No. 656, A bill for an act relating to energy; directing Legislative Energy Commission to analyze state energy standards for certain appliances.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

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

S. F. No. 2082, A bill for an act relating to government operations; modifying provisions for general legislative and administrative expenses of state government; regulating state and local government operations; establishing a statewide electronic licensing system; requiring reports; appropriating money; amending Minnesota Statutes 2008, sections 5.12, subdivision 1; 5.29; 5.32; 5A.03; 10A.31, subdivision 4; 16A.133, subdivision 1; 16B.24, subdivision

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5; 43A.49; 45.24; 270C.63, subdivision 13; 302A.821; 303.14; 303.16, subdivision 4; 308A.995; 308B.121, subdivisions 1, 2; 317A.823; 321.0206; 321.0210; 321.0810; 322B.960; 323A.1003; 333.055; 336A.04, subdivision 3; 336A.09, subdivision 2; 359.01, subdivision 3; 469.175, subdivisions 1, 6; proposing coding for new law in Minnesota Statutes, chapters 5; 16E; repealing Minnesota Statutes 2008, section 240A.08.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

STATE GOVERNMENT APPROPRIATIONS

Section 1. STATE GOVERNMENT APPROPRIATIONS.

The sums shown in the columns marked "appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011. "The biennium" is fiscal years 2010 and 2011.

APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 2. LEGISLATURE

Subdivision 1. Total Appropriation $67,352,000 $67,326,000

Appropriations by Fund

2010 2011

General 67,174,000 67,148,000

Health Care Access 178,000 178,000

The amounts that may be spent for each purpose are specified in the following subdivisions.

Subd. 2. Senate 21,810,000 21,810,000

Subd. 3. House of Representatives 29,940,000 29,940,000

During the biennium ending June 30, 2011, any revenues received by the house of representatives from sponsorship notices in broadcast or print media are appropriated to the house of representatives.

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The house must develop a system under which members and employees have electronic access to their payroll and payroll deduction information.

Subd. 4. Legislative Coordinating Commission 15,602,000 15,576,000

Appropriations by Fund

General 15,424,000 15,398,000

Health Care Access 178,000 178,000

(a) $5,657,000 the first year and $5,657,000 the second year are for the Office of the Revisor of Statutes.

(b) $1,379,000 the first year and $1,379,000 the second year are for the Legislative Reference Library.

(d) $10,000 the first year is for purposes of the legislators' forum, through which Minnesota legislators meet with counterparts from South Dakota, North Dakota, and Manitoba to discuss issues of mutual concern. This appropriation is available until June 30, 2011.

Sec. 3. GOVERNOR AND LIEUTENANT GOVERNOR $4,245,000 $4,245,000

This appropriation is to fund the Office of the Governor and Lieutenant Governor.

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

Sec. 4. STATE AUDITOR $9,858,000 $9,178,000

$680,000 the first year is for additional audit activities under the American Recovery and Reinvestment Act of 2009. This appropriation remains available through June 30, 2011.

Sec. 5. ATTORNEY GENERAL $25,631,000 $25,631,000

Appropriations by Fund

2010 2011

General 23,409,000 23,409,000

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State Government

Special Revenue 1,827,000 1,827,000

Environmental 145,000 145,000

Remediation 250,000 250,000

Sec. 6. SECRETARY OF STATE $5,910,000 $5,909,000

Any funds available in the account established in Minnesota Statutes, section 5.30, pursuant to the Help America Vote Act, are appropriated for the purposes and uses authorized by federal law.

Sec. 7. CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD $698,000 $698,000

Sec. 8. INVESTMENT BOARD $151,000 $151,000

Sec. 9. OFFICE OF ENTERPRISE TECHNOLOGY $5,758,000 $5,758,000

The requirements imposed on the commissioner of finance and the chief information officer under Laws 2007, chapter 148, article 1, section 10, paragraph (e), regarding the determination of the savings attributable to the electronic licensing system and information technology security improvements are inoperative.

Sec. 10. ADMINISTRATIVE HEARINGS $7,525,000 $7,525,000

Appropriations by Fund

2010 2011

General 275,000 275,000

Workers' Compensation 7,250,000 7,250,000

Sec. 11. ADMINISTRATION

Subdivision 1. Total Appropriation $19,260,000 $18,905,000

Appropriations by Fund

2010 2011

General 19,010,000 18,905,000

Special Revenue Fund 250,000 0

The amounts that may be spent for each purpose are specified in the following subdivisions.

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Subd. 2. Government and Citizen Services 17,384,000 17,054,000

Appropriations by Fund

General 17,134,000 17,054,000

Special Revenue Fund 250,000 0

(a) $802,000 the first year and $802,000 the second year are for the Minnesota Geospatial Information Office. Of the total appropriation, $10,000 per year is intended for preparation of township acreage data in Laws 2008, chapter 366, article 17, section 7, subdivision 3.

(b) $74,000 the first year and $74,000 the second year are for the Council on Developmental Disabilities.

(c) $134,000 the first year and $134,000 the second year are for a grant to the Council on Developmental Disabilities for the purpose of establishing a statewide self-advocacy network for persons with intellectual and developmental disabilities (ID/DD). The self-advocacy network shall: (1) ensure that persons with ID/DD are informed of their rights in employment, housing, transportation, voting, government policy, and other issues pertinent to the ID/DD community; (2) provide public education and awareness of the civil and human rights issues persons with ID/DD face; (3) provide funds, technical assistance, and other resources for self-advocacy groups across the state; and (4) organize systems of communications to facilitate an exchange of information between self-advocacy groups.

(d) $250,000 the first year and $170,000 the second year are to fund activities to prepare for and promote the 2010 census.

(e) $206,000 the first year and $206,000 the second year are for the Office of the State Archaeologist.

(f) The requirements imposed on the commissioner of finance and the commissioner of administration under Laws 2007, chapter 148, article 1, section 12, subdivision 2, paragraph (b), relating to the savings attributable to the real property portfolio management system are inoperative.

(g) $250,000 is appropriated to the commissioner of administration from the information and telecommunications account in the special revenue fund to continue planning for data center consolidation, including completing a predesign study and lifecycle cost analysis, and exploring technologies to reduce energy consumption and operating costs.

(f) $8,388,000 the first year and $8,388,000 the second year are for office space costs of the legislature and veterans organizations, for ceremonial space, and for statutorily free space.

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Subd. 3. Administrative Management Support 1,876,000 1,851,000

$125,000 each year is for the Office of Grant Management. During the biennium ending June 30, 2011, the commissioner must recover this amount through deductions in state grants subject to the jurisdiction of the office. The amount deducted from appropriations for these grants must be deposited in the general fund.

$25,000 the first year is for the Office of Grants Management to study and make recommendations on improving collaborative activities between the state, nonprofit entities, and the private sector, including: (1) recommendations for expanding successful initiatives involving not-for-profit organizations that have demonstrated measurable, positive results in addressing high-priority community issues; and (2) recommendations on grant requirements and design to encourage programs receiving grants to become self-sufficient. The office may appoint an advisory group to assist in the study and recommendations. The office must report its recommendations to the legislature by January 15, 2010.

Sec. 12. CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD $354,000 $354,000

Sec. 13. FINANCE $20,530,000 $20,030,000

$500,000 the first year is for oversight and reporting of federal funds received under the American Recovery and Reinvestment Act of 2009. This appropriation is available until June 30, 2011.

Sec. 14. REVENUE

Subdivision 1. Total Appropriation $127,802,000 $130,275,000

Appropriations by Fund

2010 2011

General 123,555,000 126,040,000

Health Care Access 1,761,000 1,749,000

Highway User Tax

Distribution 2,183,000 2,183,000

Environmental 303,000 303,000

The amounts that may be spent for each purpose are specified in subdivisions 2 and 3.

Subd. 2. Tax System Management 103,528,000 105,379,000

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Appropriations by Fund

General 99,281,000 101,144,000

Health Care Access 1,761,000 1,749,000

Highway User Tax

Distribution 2,183,000 2,183,000

Environmental 303,000 303,000

The requirements imposed on the commissioners of finance and revenue under Laws 2007, chapter 148, article 1, section 16, subdivision 2, paragraph (d), relating to the determination of savings attributable to implementing the integrated tax software package are inoperative.

(a) $1,925,000 the first year and $3,788,000 the second year are for additional activities to identify and collect tax liabilities from individuals and businesses that currently do not pay all taxes owed. This initiative is expected to result in new general fund revenues of $12,825,000 for the biennium ending June 30, 2011.

(b) The department must report to the chairs of the house of representatives Ways and Means and senate Finance Committees by March 1, 2010, and January 15, 2011, on the following performance indicators:

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

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

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

Subd. 3. Debt Collection Management 24,274,000 24,896,000

$588,000 the first year and $1,120,000 the second year are for additional activities to identify and collect tax liabilities from individuals and businesses that currently do not pay all taxes owed. This initiative is expected to result in new general fund revenues of $17,250,000 for the biennium ending June 30, 2011.

Sec. 15. GAMBLING CONTROL $2,940,000 $2,940,000

These appropriations are from the lawful gambling regulation account in the special revenue fund.

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Sec. 16. RACING COMMISSION $899,000 $899,000

These appropriations are from the racing and card playing regulation accounts in the special revenue fund.

Sec. 17. STATE LOTTERY

Notwithstanding Minnesota Statutes, section 349A.10, subdivision 3, the operating budget must not exceed $28,111,000 in fiscal year 2010 and $28,740,000 in fiscal year 2011.

Sec. 18. TORT CLAIMS $161,000 $161,000

To be spent by the commissioner of finance according to Minnesota Statutes, section 3.736, subdivision 7. If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

Sec. 19. MINNESOTA STATE RETIREMENT SYSTEM

Subdivision 1. Total Appropriation $2,346,000 $2,405,000

The amounts that may be spent for each purpose are specified in the following subdivisions.

Subd. 2. Legislators 1,889,000 1,937,000

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

Subd. 3. Constitutional Officers 457,000 468,000

Under Minnesota Statutes, section 352C.001.

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

Sec. 20. MINNEAPOLIS EMPLOYEES RETIREMENT FUND $9,000,000 $9,000,000

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

Sec. 21. TEACHERS RETIREMENT ASSOCIATION $15,454,000 $15,454,000

The amounts estimated to be needed are as specified in paragraphs (a) and (b):

(a) $12,954,000 the first year and $12,954,000 the second year are for special direct state aid authorized under Minnesota Statutes, section 354A.12, subdivisions 3a and 3c.

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(b) $2,500,000 the first year and $2,500,000 the second year are for special direct state matching aid authorized under Minnesota Statutes, section 354A.12, subdivision 3b.

Sec. 22. ST. PAUL TEACHERS RETIREMENT FUND $2,827,000 $2,827,000

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

Sec. 23. DULUTH TEACHERS RETIREMENT FUND $346,000 $346,000

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

Sec. 24. GENERAL CONTINGENT ACCOUNTS $2,775,000 $500,000

Appropriations by Fund

2010 2011

General 2,275,000 0

State Government

Special Revenue 400,000 400,000

Workers' Compensation 100,000 100,000

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

(b) Of the appropriation to the general fund contingent account, $1,775,000 is a onetime appropriation for potential state matching requirements needed to maximize receipt of federal funds under the American Recovery and Reinvestment Act of 2009.

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

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

Sec. 25. AMATEUR SPORTS COMMISSION $270,000 $270,000

The amount available for appropriation to the commission under Laws 2005, chapter 156, article 2, section 43, is reduced in the first year and the second year by the amounts appropriated in this section.

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Sec. 26. COUNCIL ON BLACK MINNESOTANS $316,000 $316,000

Sec. 27. COUNCIL ON CHICANO/LATINO AFFAIRS $298,000 $298,000

Sec. 28. COUNCIL ON ASIAN-PACIFIC MINNESOTANS $275,000 $275,000

Sec. 29. INDIAN AFFAIRS COUNCIL $500,000 $500,000

$32,000 each year is for activities of the council relating to Indian burial sites, including activities relating to unfunded federal mandates.

Sec. 30. PROBLEM GAMBLING APPROPRIATION.

$225,000 in fiscal year 2010 and $225,000 in fiscal year 2011 are appropriated from the lottery prize fund to the Gambling Control Board for a grant to the state affiliate recognized by the National Council on Problem Gambling. The affiliate must provide services to increase public awareness of problem gambling, education and training for individuals and organizations providing effective treatment services to problem gamblers and their families, and research relating to problem gambling. These services must be complimentary to and not duplicative of the services provided through the problem gambling program administered by the commissioner of human services. Of this appropriation, $50,000 in fiscal year 2010 and $50,000 in fiscal year 2011 are contingent on the contribution of nonstate matching funds. Matching funds may be either cash or qualifying in-kind contributions. The commissioner of finance may disburse the state portion of the matching funds in increments of $25,000 upon receipt of a commitment for an equal amount of matching nonstate funds. These are onetime appropriations.

Sec. 31. MANAGERIAL POSITION REDUCTIONS.

The governor must reduce the number of deputy commissioners, assistant commissioners, and positions designated as unclassified under authority of Minnesota Statutes, section 43A.08, subdivision 1a, by an amount that will generate savings to the general fund of $16,488,000 in the biennium ending June 30, 2011, and $16,488,000 in the biennium ending June 30, 2013. The commissioner of finance shall determine the costs of salaries and benefits attributable to the positions eliminated by this section, and reduce the appropriation to each affected agency accordingly.

ARTICLE 2

STATE GOVERNMENT OPERATIONS

Section 1. [3.057] ENTERPRISE SERVICES AND GOVERNMENT EFFICIENCY.

The finance committee divisions in the house of representatives and the senate with jurisdiction over state government finance issues must be known as the "Enterprise Services and Government Efficiency Finance Divisions," and must conduct periodic Kaizen events to ensure that the divisions operate in a LEAN manner.

Sec. 2. Minnesota Statutes 2008, section 3.97, is amended by adding a subdivision to read:

Subd. 2a. Review of financial management and internal controls. The commission shall monitor internal control systems in state government to the extent necessary to ensure that management has established and implemented effective systems and procedures. The commission shall also review legislative auditor audits and reports and make recommendations, as the commission determines necessary, for improvements in the state's system of financial management. In furtherance of these duties, the commission shall:

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(1) receive reports and recommendations from the legislative auditor, the financial controls council, and from internal auditors in state agencies;

(2) review significant findings and recommendations from the legislative auditor's financial audits of state agencies and from agency internal auditors, together with state agency management's responses and action plans;

(3) review the scope of annual audit plans for the state's internal audit function;

(4) review the qualifications, performance, and objectivity of the state's internal audit function, including the activities of the commissioner in section 16A.056;

(5) review with the legislative auditor any audit problems or difficulties and management's responses, any difficulties the auditor encountered during the course of the audit work, including any restrictions on the scope of the auditor's activities or on access to requested information, and any significant disagreements between the auditor and management;

(6) make recommendations to the governor and the legislature for changes in laws or policies necessary to deal with agencies that have not satisfactorily addressed repeated problems with financial controls;

(7) make recommendations to the governor and the legislature for changes needed in state laws, policies, procedures, or personnel, to ensure an effective system of internal controls that safeguards public funds and assets and minimizes incidences of fraud, waste, and abuse;

(8) conduct hearings as necessary regarding the effectiveness of internal control or internal audit functions of any state agency; and

(9) contract with outside auditors as the commission determines is beneficial for the state's internal audit function and internal controls.

Sec. 3. Minnesota Statutes 2008, section 3.971, subdivision 6, is amended to read:

Subd. 6. Financial audits. The legislative auditor shall audit the financial statements of the state of Minnesota required by section 16A.50 and, as resources permit, shall audit Minnesota State Colleges and Universities, the University of Minnesota, state agencies, departments, boards, commissions, courts, and other state organizations subject to audit by the legislative auditor, including the State Agricultural Society, Agricultural Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical Society, Labor Interpretive Center, Minnesota Partnership for Action Against Tobacco, Metropolitan Sports Facilities Commission, Metropolitan Airports Commission, and Metropolitan Mosquito Control District. Financial audits must be conducted according to generally accepted government auditing standards. The legislative auditor shall see that all provisions of law respecting the appropriate and economic use of public funds are complied with and may, as part of a financial audit or separately, investigate allegations of noncompliance ~~by employees of departments and agencies of the state government and the other organizations listed in this subdivision~~.

Sec. 4. Minnesota Statutes 2008, section 3.975, is amended to read:

3.975 DUTIES CONCERNING MISUSE OF PUBLIC MONEY OR OTHER RESOURCES.

If a legislative auditor's examination discloses that a state official or employee has used money for a purpose other than the purpose for which the money was appropriated or discloses any other misuse of public money or other public resources, the legislative auditor shall file a report with the Legislative Audit Commission, the attorney general, and the appropriate county attorney. The attorney general shall seek recovery of money and other resources as the evidence may warrant. The county attorney shall cause criminal proceedings to be instituted as the evidence may warrant.

EFFECTIVE DATE. This section is effective the day following final enactment.

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Sec. 5. [4.041] GOVERNOR'S OFFICE BUDGET.

Any personnel costs attributable to the office of the governor and the lieutenant governor must be accounted for through an appropriation to the office of the governor. The office of the governor and the lieutenant governor may not enter into agreements with other executive branch agencies under which these personnel costs are supported by appropriations to other agencies.

Sec. 6. Minnesota Statutes 2008, section 4A.02, is amended to read:

4A.02 STATE DEMOGRAPHER.

(a) The director shall appoint a state demographer. The demographer must be professionally competent in demography and must possess demonstrated ability based upon past performance.

(b) The demographer shall:

(1) continuously gather and develop demographic data relevant to the state;

(2) design and test methods of research and data collection;

(3) periodically prepare population projections for the state and designated regions and periodically prepare projections for each county or other political subdivision of the state as necessary to carry out the purposes of this section;

(4) review, comment on, and prepare analysis of population estimates and projections made by state agencies, political subdivisions, other states, federal agencies, or nongovernmental persons, institutions, or commissions;

(5) serve as the state liaison with the United States Bureau of the Census, coordinate state and federal demographic activities to the fullest extent possible, and aid the legislature in preparing a census data plan and form for each decennial census;

(6) compile an annual study of population estimates on the basis of county, regional, or other political or geographical subdivisions as necessary to carry out the purposes of this section and section 4A.03;

(7) by January 1 of each year, issue a report to the legislature containing an analysis of the demographic implications of the annual population study and population projections;

(8) prepare maps for all counties in the state, all municipalities with a population of 10,000 or more, and other municipalities as needed for census purposes, according to scale and detail recommended by the United States Bureau of the Census, with the maps of cities showing precinct boundaries;

(9) prepare an estimate of population and of the number of households for each governmental subdivision for which the Metropolitan Council does not prepare an annual estimate, and convey the estimates to the governing body of each political subdivision by June 1 of each year;

(10) direct, under section 414.01, subdivision 14, and certify population and household estimates of annexed or detached areas of municipalities or towns after being notified of the order or letter of approval by the chief administrative law judge of the State Office of Administrative Hearings;

(11) prepare, for any purpose for which a population estimate is required by law or needed to implement a law, a population estimate of a municipality or town whose population is affected by action under section 379.02 or 414.01, subdivision 14; and

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(12) prepare an estimate of average household size for each statutory or home rule charter city with a population of 2,500 or more by June 1 of each year.

(c) A governing body may challenge an estimate made under paragraph (b) by filing their specific objections in writing with the state demographer by June 24. If the challenge does not result in an acceptable estimate, the governing body may have a special census conducted by the United States Bureau of the Census. The political subdivision must notify the state demographer by July 1 of its intent to have the special census conducted. The political subdivision must bear all costs of the special census. Results of the special census must be received by the state demographer by the next April 15 to be used in that year's June 1 estimate to the political subdivision under paragraph (b).

(d) The state demographer shall certify the estimates of population and household size to the commissioner of revenue by July 15 each year, including any estimates still under objection.

(e) The state demographer shall release a demographic forecast in conjunction with the commissioner of finance and the November state economic forecast.

Sec. 7. Minnesota Statutes 2008, section 5A.03, is amended to read:

5A.03 ORGANIZATION APPLICATION FOR REGISTRATION.

(a) An application for registration as an international student exchange visitor placement organization must be submitted in the form prescribed by the secretary of state. The application must include:

(1) evidence that the organization meets the standards established by the secretary of state by rule;

(2) the name, address, and telephone number of the organization, its chief executive officer, and the person within the organization who has primary responsibility for supervising placements within the state;

(3) the organization's unified business identification number, if any;

(4) the organization's United States Information Agency number, if any;

(5) evidence of Council on Standards for International Educational Travel listing, if any;

(6) whether the organization is exempt from federal income tax; and

(7) a list of the organization's placements in Minnesota for the previous academic year including the number of students placed, their home countries, the school districts in which they were placed, and the length of their placements.

(b) The application must be signed by the chief executive officer of the organization and the person within the organization who has primary responsibility for supervising placements within Minnesota. If the secretary of state determines that the application is complete, the secretary of state shall file the application and the applicant is registered.

(c) Organizations that have registered shall inform the secretary of state of any changes in the information required under paragraph (a), clause (1), within 30 days of the change. There is no fee to amend a registration.

(d) Registration under this chapter is valid for one year. The registration may be renewed annually. The fee to renew a registration is $50 per year.

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(e) Organizations registering for the first time in Minnesota must pay an initial registration fee of $150.

(f) Fees collected by the secretary of state under this section must be deposited in ~~the state treasury and credited to~~ the general fund ~~and are added to the appropriation from which registration costs are paid~~ as a nondedicated receipt.

Sec. 8. Minnesota Statutes 2008, section 10.43, is amended to read:

10.43 TELEPHONE USE; APPROVAL.

(a) Each representative, senator, constitutional officer, judge, and head of a state department or agency shall sign the person's monthly long-distance telephone bills paid by the state as evidence of the person's approval of each bill. This signature requirement does not apply to a month in which the person's long-distance phone bill paid by the state is less than $5.

(b) Even if the monthly long-distance phone bill paid by the state for a person subject to this section is less than $5, the person is responsible for paying that portion of the bill that does not relate to state business. As provided in section 10.46, long-distance telephone bills paid by the state are public data, regardless of the amount of the bills.

EFFECTIVE DATE. This section is effective for telephone bills for usage on or after July 1, 2009.

Sec. 9. [10.49] NAMING.

Laws must not be named for living people, and laws may not name councils, buildings, roads, or other facilities or entities after living people.

Sec. 10. Minnesota Statutes 2008, section 10.60, subdivision 2, is amended to read:

Subd. 2. Purpose of Web site and publications. The purpose of a Web site and ~~a publication~~ publications must be to provide information about the duties and jurisdiction of a state agency or political subdivision or and to facilitate access to public services and information related to the responsibilities or functions of the state agency or political subdivision.

Sec. 11. Minnesota Statutes 2008, section 10.60, is amended by adding a subdivision to read:

Subd. 2a. Contact information. The home page of a Web site maintained by a state agency must prominently display an e-mail address at which the agency may be contacted and a telephone number that will be answered by a human being to the greatest extent possible, located in Minnesota, during normal business hours. A state agency must comply with the requirements of this subdivision with existing resources.

Sec. 12. Minnesota Statutes 2008, 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), ~~$1,250,000~~ $1,020,000 for each general election is appropriated from the general fund for transfer to the general account of the state elections campaign fund.

In addition, $50,000 each fiscal year is appropriated from the general fund to the Campaign Finance and Public Disclosure Board to supplement its operating budget. Amounts remaining unspent at the end of the biennium must be transferred and canceled to the general account of the state elections campaign fund.

~~Journal of the House - 37th Day - Tuesday, April 21, 2009 - Top of Page 3136~~

~~Of this appropriation, $65,000 each fiscal year must be set aside to pay assessments made by~~ In addition, $130,000 for each two-year period beginning on July 1 of each odd-numbered year is appropriated from the general fund to the Office of Administrative Hearings to perform its duties under section 211B.37. Amounts remaining after all assessments have been paid must be canceled to the general account of the state elections campaign fund.

Sec. 13. Minnesota Statutes 2008, section 11A.07, subdivision 4, is amended to read:

Subd. 4. Duties and powers. The director, at the direction of the state board, shall:

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

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

(3) employ professional and clerical staff as necessary. Employees whose primary responsibility is to invest or manage money or employees who hold positions designated as unclassified under section 43A.08, subdivision 1a, are in the unclassified service of the state. Other employees are in the classified service. Unclassified employees who are not covered by a collective bargaining agreement are employed under the terms and conditions of the compensation plan approved under section 43A.18, subdivision 3b;

(4) report to the state board on all operations under the director's control and supervision;

(5) maintain accurate and complete records of securities transactions and official activities;

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

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

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

(9) include on the state board's Web site its annual and quarterly reports, including executive summaries;

~~(9)~~ (10) require state officials from any department or agency to produce and provide access to any financial documents the state board deems necessary in the conduct of its investment activities;

~~(10)~~ (11) receive and expend legislative appropriations; and

~~(11)~~ (12) undertake any other activities necessary to implement the duties and powers set forth in this subdivision consistent with chapter 356A.

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Sec. 14. Minnesota Statutes 2008, section 13.64, is amended to read:

13.64 DEPARTMENT OF ~~ADMINISTRATION~~ FINANCE DATA.

(a) Notes and preliminary drafts of reports created, collected, or maintained by the Management Analysis Division, Department of ~~Administration~~ finance, and prepared during management studies, audits, reviews, consultations, or investigations are classified as confidential or protected nonpublic data until the final report has been published or preparation of the report is no longer being actively pursued.

(b) Data that support the conclusions of the report and that the commissioner of ~~administration~~ finance reasonably believes will result in litigation are confidential or protected nonpublic until the litigation has been completed or until the litigation is no longer being actively pursued.

(c) Data on individuals that could reasonably be used to determine the identity of an individual supplying data for a report are private if:

(1) the data supplied by the individual were needed for a report; and

(2) the data would not have been provided to the Management Analysis Division without an assurance to the individual that the individual's identity would remain private, or the Management Analysis Division reasonably believes that the individual would not have provided the data.

Sec. 15. [15B.055] PARKING SPACES.

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

Sec. 16. [15C.01] DEFINITIONS.

Subdivision 1. Scope. For purposes of this chapter, the terms in this section have the meanings given them.

Subd. 2. Claim. "Claim" includes any request or demand, whether under a contract or otherwise, for money or property which is made to a contractor, grantee, or other recipient if the state has provided or will provide any portion of the money or property which is requested or demanded, or if the state has reimbursed or will reimburse the contractor, grantee, or other recipient for any portion of the money or property which is requested or demanded.

Subd. 3. Knowing and knowingly. "Knowing" and "knowingly" mean that a person, with respect to information:

(1) has actual knowledge of the information;

(2) acts in deliberate ignorance of the truth or falsity of the information; or

(3) acts in reckless disregard of the truth or falsity of the information.

No proof of specific intent to defraud is required.

Subd. 4. Original source. "Original source" means a person who has direct and independent knowledge of information which is probative of any essential element of the allegations in an action brought pursuant to this section which was not obtained from a public source and who either voluntarily provided the information to the state before bringing an action based on the information or whose information provided the basis for or caused an investigation, hearing, audit, or report that led to the public disclosure of the allegations or transactions upon which an action brought pursuant to this section is based.

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Subd. 5. Person. "Person" means any natural person, partnership, corporation, association or other legal entity, including the state and any department, agency, or political subdivision of the state.

Subd. 6. State. "State" means the state of Minnesota and includes any department, agency, or political subdivision of the state.

Sec. 17. [15C.02] LIABILITY FOR CERTAIN ACTS.

Subdivision 1. Liability. (a) Any person who commits any of the acts in clauses (1) to (8) is liable to the state for a civil penalty of not less than $5,000 and not more than $10,000 per false claim, plus three times the amount of damages which the state sustains because of the act of that person, except as otherwise provided in paragraph (b):

(1) knowingly presents, or causes to be presented, to an officer or employee of the state of Minnesota a false or fraudulent claim for payment or approval;

(2) knowingly makes or uses, or causes to be made or used, a false record or statement to get a false or fraudulent claim paid or approved by the state;

(3) knowingly conspires to either present a false or fraudulent claim to the state for payment or approval or make, use, or cause to be made or used a false record or statement to obtain payment or approval of a false or fraudulent claim;

(4) has possession, custody, or control of public property or money used, or to be used, by the state and knowingly delivers or causes to be delivered to the state less money or property than the amount for which the person receives a receipt;

(5) is authorized to prepare or deliver a receipt for money or property used, or to be used, by the state and knowingly prepares or delivers a receipt that falsely represents the money or property;

(6) knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the state who lawfully may not sell or pledge the property; or

(7) knowingly makes or uses, or causes to be made or used, a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the state.

(b) The court may assess not less than two times the amount of damages which the state sustains because of the act of the person if:

(1) the person committing a violation under paragraph (a) furnished officials of the state responsible for investigating the false claims violations with all information known to the person about the violation within 30 days after the date on which the defendant first obtained the information;

(2) the person fully cooperated with any state investigation of the violation; and

(3) at the time the person furnished the state with information about the violation, no criminal prosecution, civil action, or administrative action had commenced under this section with respect to the violation, and the person did not have actual knowledge of the existence of an investigation into the violation.

(c) A person violating this section is also liable to the state for the costs of a civil action brought to recover any penalty or damages.

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Subd. 2. Right to cure. A person is not liable under this section for mere inadvertence or mistake with respect to activities involving a false or fraudulent claim.

Sec. 18. [15C.03] EXCLUSION.

This chapter does not apply to claims, records, or statements made under portions of Minnesota Statutes relating to taxation.

Sec. 19. [15C.04] RESPONSIBILITIES OF ATTORNEY GENERAL.

The attorney general may investigate violations of section 15C.02. If the attorney general finds that a person has violated or is violating section 15C.02, the attorney general may bring a civil action under this section against the person to enjoin any act in violation of section 15C.02 and to recover damages and penalties.

Sec. 20. [15C.05] PRIVATE REMEDIES; COMPLAINT UNDER SEAL; COPY OF COMPLAINT AND WRITTEN DISCLOSURE OF EVIDENCE TO BE SENT TO ATTORNEY GENERAL.

(a) Except as otherwise provided in this section, a person may maintain an action pursuant to this section on the person's own account and that of the state if money, property, or services provided by the state are involved; the person's own account and that of a political subdivision if money, property, or services provided by the political subdivision are involved; or on the person's own account and that of both the state and a political subdivision if both are involved. After such an action is commenced, it may be voluntarily dismissed only if the court and the attorney general give written consent to the dismissal and their reasons for consenting.

(b) If an action is brought pursuant to this section, no other person may bring another action pursuant to this section based on the same facts which are the subject of the pending action.

(1) against the legislature, the judiciary, an executive department of the state, or a political subdivision, and their members or employees;

(2) if the action is based upon allegations or transactions that are the subject of a civil action or an administrative proceeding for a monetary penalty to which the state or a political subdivision of the state is already a party; or

(3) unless the action is brought by an original source of the information or the attorney general initiates or intervenes in the action, if the action is based upon the public disclosure of allegations or transactions: (i) in a criminal, civil, or administrative hearing; (ii) in an investigation, report, hearing, or audit conducted by or at the request of the house of representatives or the senate; (iii) by an auditor or the governing body of a political subdivision; or (iv) from the news media.

(d) A complaint in an action pursuant to this section must be commenced by filing the complaint with the court in camera, and the court must place it under seal for at least 60 days. No service may be made upon the defendant until the complaint is unsealed.

(e) If a complaint is filed under this section, the plaintiff shall serve a copy of the complaint on the attorney general in accordance with the Minnesota Rules of Civil Procedure and shall also serve at the same time a written disclosure of substantially all material evidence and information the plaintiff possesses.

Sec. 21. [15C.06] ATTORNEY GENERAL INTERVENTION; MOTION TO EXTEND TIME; UNSEALING OF COMPLAINT.

(a) Within 60 days after receiving a complaint and disclosure pursuant to section 15C.05, the attorney general shall intervene or decline intervention or, for good cause shown, move the court to extend the time for doing so. The motion may be supported by affidavits or other submissions in chambers.

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(b) The complaint must be unsealed after the attorney general decides whether or not to intervene.

(c) Notwithstanding the attorney general's decision regarding intervention in an action brought by a plaintiff under section 15C.05, the attorney general may pursue the claim through any alternate remedy available to the state, including any administrative proceeding to determine a civil money penalty. If the attorney general pursues any such alternate remedy in another proceeding, the person initiating the action has the same rights in that proceeding as if the action had continued under section 15C.05. Any finding of fact or conclusion of law made in the other proceeding that has become final is conclusive on all parties to an action under section 15C.05. For purposes of this paragraph, a finding or conclusion is final if it has been finally determined on appeal to the appropriate state court, if the time for filing an appeal has expired, or if the finding or conclusion is not subject to judicial review.

Sec. 22. [15C.07] SERVICE OF UNSEALED COMPLAINT AND RESPONSE BY DEFENDANT.

When unsealed, the complaint shall be served on the defendant pursuant to Rule 3 of the Minnesota Rules of Civil Procedure.

The defendant must respond to the complaint within 20 days after it is served on the defendant.

Sec. 23. [15C.08] ATTORNEY GENERAL AND PRIVATE PARTY ROLES.

(a) Except as otherwise provided by this section, if the attorney general does not intervene at the outset in an action brought by a person pursuant to section 15C.05, the person has the same rights in conducting the action as the attorney general would have had. A copy of each pleading or other paper filed in the action, and a copy of the transcript of each deposition taken, must be mailed to the attorney general if the attorney general so requests and pays the cost of doing so.

(b) If the attorney general elects not to intervene at the outset in the action, the attorney general may intervene subsequently, upon timely application and good cause shown. If the attorney general so intervenes, the attorney general subsequently has primary responsibility for conducting the action.

(c) If the attorney general elects at the outset of the action to intervene, the attorney general has the primary responsibility for prosecuting the action. The person who initially brought the action remains a party, but the person's acts do not bind the attorney general.

(d) Whether or not the attorney general intervenes in the action, the attorney general may move to dismiss the action for good cause. The person who brought the action must be notified of the filing of the motion and may oppose it and present evidence at the hearing. The attorney general may also settle the action. If the attorney general intends to settle the action, the attorney general shall notify the person who brought the action. The state may settle the action with the defendant notwithstanding the objections of the person initiating the action if the court determines, after a hearing, that the proposed settlement is fair, adequate, and reasonable under all the circumstances. Upon a showing of good cause, such a hearing may be held in camera.

Sec. 24. [15C.09] STAY OF DISCOVERY; EXTENSION.

(a) The court may stay discovery by a person who brought an action under section 15C.05 for not more than 60 days if the attorney general shows that the proposed discovery would interfere with the investigation or prosecution of a civil or criminal matter arising out of the same facts, whether or not the attorney general participates in the action.

(b) The court may extend the stay upon a further showing that the attorney general has pursued the civil or criminal investigation or proceeding with reasonable diligence and that the proposed discovery would interfere with its continuation.

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(c) Discovery may not be stayed for a total of more than six months over the objection of the person who brought the action, except for good cause shown by the attorney general.

(d) A showing made pursuant to this section must be made in chambers.

Sec. 25. [15C.10] COURT-IMPOSED LIMITATION UPON PARTICIPATION OF PRIVATE PLAINTIFF IN ACTION.

Upon a showing by the attorney general in an action in which the attorney general has intervened that unrestricted participation by a person under this chapter would interfere with or unduly delay the conduct of the action, or would be repetitious, irrelevant, or solely for harassment, the court may limit the person's participation by, among other measures, limiting the number of witnesses, the length of the testimony of the witnesses, or the cross-examination of witnesses by the person.

Sec. 26. [15C.11] LIMITATION OF ACTIONS; REMEDIES.

(a) An action pursuant to this chapter may not be commenced more than three years after the date of discovery of the fraudulent activity by the attorney general or more than six years after the fraudulent activity occurred, whichever occurs last, but in no event more than ten years after the date on which the violation is committed.

(b) A finding of guilt in a criminal proceeding charging false statement or fraud, whether upon a verdict of guilty or a plea of guilty or nolo contendere, stops the person found guilty from denying an essential element of that offense in an action pursuant to this chapter based upon the same transaction as the criminal proceeding.

(c) In any action under this chapter, the state and any qui tam plaintiff must prove all essential elements of the cause of action, including damages, by a preponderance of the evidence.

Sec. 27. [15C.12] AWARD OF EXPENSES AND ATTORNEY FEES.

If the attorney general or a person who brought an action under section 15C.05 prevails in or settles an action pursuant to this chapter, the court may authorize the person to recover reasonable costs, reasonable attorney fees, and the reasonable fees of expert consultants and expert witnesses. Those expenses must be awarded against the defendant, and may not be allowed against the state or a political subdivision. If the attorney general does not intervene in the action and the person bringing the action conducts the action, and if the defendant prevails in the action, the court shall award to the defendant reasonable expenses and attorney fees against the party or parties who participated in the action if it finds that the action was clearly frivolous or vexatious or brought in substantial part for harassment.

Sec. 28. [15C.13] DISTRIBUTION TO PRIVATE PLAINTIFF IN CERTAIN ACTIONS.

If the attorney general intervenes at the outset in an action brought by a person under section 15C.05, the person shall receive not less than 15 percent or more than 25 percent of any recovery in proportion to the person's contribution to the conduct of the action. If the attorney general does not intervene in the action at the outset, the person is entitled to receive not less than 25 percent or more than 30 percent of any recovery of the civil penalty and damages, or settlement, as the court determines to be reasonable. For recoveries whose distribution is governed by federal code or rule, the basis for calculating the portion of the recovery the person is entitled to receive shall not include such amounts reserved for distribution to the federal government or designated in their use by such federal code or rule.

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Sec. 29. [15C.14] EMPLOYER RESTRICTIONS; LIABILITY.

(a) An employer shall not adopt or enforce any rule or policy forbidding an employee to disclose information to the state, a political subdivision, or a law enforcement agency, or to act in furtherance of an action pursuant to this chapter, including investigation for bringing or testifying in such an action.

(b) An employer shall not discharge, demote, suspend, threaten, harass, deny promotion to, or otherwise discriminate against an employee in the terms or conditions of employment because of lawful acts done by the employee on the employee's behalf or on behalf of others in disclosing information to the state, a political subdivision, or a law enforcement agency in furtherance of an action pursuant to this chapter, including investigation for bringing or testifying in such an action.

(c) An employer who violates this section is liable to the affected employee in a civil action for damages and other relief, including reinstatement, twice the amount of lost compensation, interest on the lost compensation, any special damage sustained as a result of the discrimination, and punitive damages if appropriate. The employer is also liable for expenses recoverable pursuant to section 15C.12, including costs and attorney fees.

Sec. 30. [16A.0115] NAME.

The commissioner of finance and the Department of Finance may not be identified by a title or name other than the title and name assigned by law. The Commissioner must ensure that the department's documents, publications, and Web site comply with this section.

Sec. 31. Minnesota Statutes 2008, section 16A.055, subdivision 1, is amended to read:

Subdivision 1. List. (a) The commissioner shall:

(1) receive and record all money paid into the state treasury and safely keep it until lawfully paid out;

(2) manage the state's financial affairs;

(3) keep the state's general account books according to generally accepted government accounting principles;

(4) keep expenditure and revenue accounts according to generally accepted government accounting principles;

(5) develop, provide instructions for, prescribe, and manage a state uniform accounting system; and

(6) provide to the state the expertise to ensure that all state funds are accounted for under generally accepted government accounting principles~~; and~~.

(7) coordinate the development of, and maintain standards for, internal auditing in state agencies and, in cooperation with the commissioner of administration, report to the legislature and the governor by January 31 of odd-numbered years, on progress made.

(b) In addition to the duties in paragraph (a), the commissioner has the powers and duties given to the commissioner in chapter 43A.

Sec. 32. Minnesota Statutes 2008, section 16A.055, is amended by adding a subdivision to read:

Subd. 1a. Additional duties. The commissioner may assist state agencies by providing analytical, statistical, and organizational development services to state agencies in order to assist the agency to achieve the agency's mission and to operate efficiently and effectively.

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Sec. 33. [16A.056] WEB SITE WITH SEARCHABLE DATABASE ON STATE EXPENDITURES.

Subdivision 1. Web database requirement. The commissioner, in consultation with the commissioners of administration and revenue, must maintain a Web site with a searchable database providing the public with information on state contracts, state appropriations, state expenditures, and state tax expenditures. For each data field identified in subdivisions 2 to 5, the searchable database must allow a user of the Web site to:

(1) perform a search using that field;

(2) sort by that field;

(3) obtain information grouped or aggregated by that field, where groups or subtotals are feasible; and

(4) view information in that field by each fiscal year or an aggregation of fiscal years.

Subd. 2. Contracts. (a) The searchable database on the Web site must include at least the following data fields:

(1) the name of the entity receiving the contract;

(2) the name of the agency entering into the contract;

(3) an indication if the contract is for (i) goods; (ii) professional or technical services; (iii) services other than professional and technical services; or (iv) a grant; and

(4) the fund or funds from which the entity receiving the contract will be paid.

(b) For each contract, the database must also include:

(1) an address for each entity receiving a contract; and

(2) a brief statement of the purpose of the contract or grant.

(c) Information on a new contract or grant must be entered into the database within 30 days of the time the contract or grant is entered into.

(d) For purposes of this section, a "grant" is a contract between a state agency and a recipient, the primary purpose of which is to transfer cash or a thing of value to the recipient to support a public purpose. Grant does not include payments to units of local governments, payments to state employees, or payments made under laws providing for assistance to individuals.

Subd. 3. Appropriations. The searchable database on the Web site must include at least the following data fields on state appropriations:

(1) the agency receiving the appropriation, or the name of the nonstate entity receiving the appropriation;

(2) the agency program, to the extent applicable;

(3) the agency activity, to the extent applicable;

(4) an item within an activity if applicable;

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(5) the fund from which the appropriation is made; and

(6) the object of expenditure.

Subd. 4. State expenditures. The searchable database on the Web site must include at least the following data fields on state expenditures:

(1) the agency making the expenditure, or the name of the nonstate entity making the appropriation;

(2) the agency program, to the extent applicable;

(3) the agency activity, to the extent applicable;

(4) an item within an activity if applicable;

(5) the fund from which the expenditure is made; and

(6) the object of expenditure.

Subd. 5. Tax expenditures. The Web site must include a searchable database of state tax expenditures. For each fiscal year, the database must include data fields showing the estimated impact on state revenues of each tax expenditure item listed in the report prepared under section 270C.11.

Subd. 6. Retention of data. The database required under this section must include information beginning with fiscal year 2010 funds and must retain data for at least ten years.

Subd. 7. Consultation. The commissioner of finance must consult with the chairs of the house of representatives Ways and Means and senate Finance Committees before encumbering any funds appropriated on or after July 1, 2009, for the planning, development, and implementation of state accounting or procurement systems. No funds appropriated for these purposes may be spent unless the commissioner certifies that the systems will allow compliance with requirements of this section.

Sec. 34. [16A.057] INTERNAL CONTROLS AND INTERNAL AUDITING.

Subdivision 1. Establishment of system. The commissioner is responsible for the system of internal controls across the executive branch. The commissioner must coordinate the design, implementation, and maintenance of an effective system of internal controls and internal auditing for all executive agencies. The system must:

(1) safeguard public funds and assets and minimize incidences of fraud, waste, and abuse;

(2) ensure that programs are administered in compliance with federal and state laws and rules;

(3) require documentation of internal control procedures over financial management activities, provide for analysis of risks, and provide for periodic evaluation of control procedures to satisfy the commissioner that these procedures are adequately designed, properly implemented, and functioning effectively; and

(4) provide for periodic internal audit of major systems and controls, including accounting systems and controls; administrative systems and controls; and, in conjunction with the Office of Enterprise Technology, information and telecommunications technology systems and controls.

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Subd. 2. Standards. The commissioner must adopt internal control standards and policies that agencies must follow to meet the requirements of subdivision 1. These standards and policies may include separation of duties, safeguarding receipts, time entry, approval of travel, and other topics the commissioner determines are necessary to comply with subdivision 1.

Subd. 3. Training and assistance. The commissioner shall coordinate training for accounting personnel and financial managers in state agencies on internal controls as necessary to ensure financial integrity in the state's financial transactions. The commissioner shall provide internal control support to agencies that the commissioner determines need this assistance.

Subd. 4. Sharing internal audit resources. The commissioner must administer a program for sharing internal auditors among executive agencies that do not have their own internal auditors and for assembling interagency teams of internal auditors as necessary.

Subd. 5. Monitoring Office of the Legislative Auditor audits. The commissioner must review audit reports from the Office of the Legislative Auditor and take appropriate steps to address internal control problems found in executive agencies.

Subd. 6. Budget for internal controls. The commissioner of finance may require that each executive agency spend a specified percentage of its operating budget on internal control systems. The commissioner of finance may require that an agency transfer a portion of its operating budget to the commissioner to pay for internal control functions performed by the commissioner.

Subd. 7. Annual report. The commissioner must report to the legislature and the governor by January 31 of each odd-numbered year on the system of internal controls and internal auditing in executive agencies.

Subd. 8. Agency head responsibilities. The head of each executive agency is responsible for designing, implementing, and maintaining an effective internal control system within the agency that complies with the requirements of subdivision 1, clauses (1) to (4). The head of each executive agency must annually certify that the agency head has reviewed the agency's internal control systems, and that these systems are in compliance with standards and policies established by the commissioner. The agency head must submit the signed certification form to the commissioner of finance, in a form specified by the commissioner.

Subd. 9. State colleges and universities. This section does not apply to the Minnesota state colleges and universities system.

Sec. 35. [16A.058] FINANCIAL CONTROLS COUNCIL.

Subdivision 1. Membership. The executive council shall appoint a five-member financial controls council. Members must have public or private sector experience in internal control issues. The council shall annually elect a chair and vice-chair from among its members.

Subd. 2. Duties. (a) The council shall advise the commissioner of finance, the governor, the Legislative Audit Commission, and the legislature on the system of internal controls for executive agencies. In performing this duty, the council shall:

(1) review audits and other reports of the Office of the Legislative Auditor and from internal auditors in executive agencies;

(2) review the state's system of internal controls and make recommendations for changes in practices of specific executive agencies or on general changes needed in state laws, procedures, or policies;

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(3) recommend guidelines and best practices to produce an effective system of internal controls;

(4) recommend the number of internal audit employees required for executive agencies, individually and in total; and

(5) review and comment on the performance of the commissioner of finance in carrying out duties under section 16A.057.

(b) The council may:

(1) require reports from any executive agency relative to an internal control or an internal audit matter;

(2) receive and review reports from internal auditors in executive agencies;

(3) conduct hearings relative to attempts to interfere with, compromise, or intimidate an internal auditor; and

(4) conduct hearings on the effectiveness of internal control or internal audit functions within an executive agency.

Subd. 3. Terms; compensation; removal; vacancies; expiration. The membership terms, compensation, removal of members, and filling of vacancies shall be as provided in section 15.059, except that council members shall not receive a per diem. The council is not subject to the expiration date provisions of section 15.059.

Subd. 4. Administrative support. The commissioner of finance shall provide administrative support to the council upon request of its chair.

Subd. 5. MnSCU. The Minnesota State Colleges and Universities system is not an executive agency for purposes of this section.

Sec. 36. Minnesota Statutes 2008, section 16A.11, is amended by adding a subdivision to read:

Subd. 3d. Information technology budget proposals. A proposal in the detailed budget documents for a new investment in information technology systems or equipment costing $100,000 or more must request that money for the system or equipment be appropriated to the Office of Enterprise Technology.

Sec. 37. Minnesota Statutes 2008, section 16A.126, subdivision 1, is amended to read:

Subdivision 1. Set rates. The commissioner shall approve the rates an agency must pay to a revolving fund for services. Funds subject to this subdivision include, but are not limited to, the revolving funds established in sections 4A.05; 14.46; 14.53; 16B.48; 16B.54; 16B.58; 16B.85; 16C.03, subdivision 11; 16E.14; 43A.55; and 176.591; and the fund established in section 43A.30.

Sec. 38. Minnesota Statutes 2008, section 16A.133, subdivision 1, is amended to read:

Subdivision 1. Payroll direct deposit and deductions. An agency head in the executive, judicial, and legislative branch shall, upon written request signed by an employee, directly deposit all or part of an employee's pay to those credit unions or financial institutions, as defined in section 47.015, designated by the employee.

An agency head ~~may~~ must, upon written request of an employee, deduct from the pay of the employee a requested amount to be paid to the Minnesota Benefit Association, or to any ~~organization~~ organizations contemplated by section 179A.06, of which the employee is a member. ~~If an employee has more than one account~~

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with the Minnesota Benefit Association or more than one organization under section 179A.06, only the Minnesota Benefit Association and one organization, as defined under section 179A.06, may be paid money by payroll deduction from the employee's pay.

Sec. 39. Minnesota Statutes 2008, section 16A.139, is amended to read:

16A.139 MISAPPROPRIATION OF MONEY.

~~It is illegal for any~~ (a) No official or head of any state department in the executive, legislative, or judicial branches, or any employee ~~thereof~~ of a state department in those branches, to may intentionally use ~~moneys~~ money appropriated by law, or fees collected knowing that the use is for ~~any other~~ a purpose other than the purpose for which the ~~moneys have been~~ money was appropriated~~, and any such act by any~~. Unless a greater penalty is specified elsewhere in law, a person who violates this paragraph is guilty of a gross misdemeanor.

(b) A violation of paragraph (a) by a head of a department, or any state official, is cause for immediate removal of the official or head of a state department from the position held with the government of this state. A criminal conviction under paragraph (a) is not a prerequisite for removal. This paragraph does not apply to a judge, a constitutional officer, or a legislator, except as potential grounds for expulsion, impeachment, or recall in the manner specified in article IV, section 7, and article VIII of the Minnesota Constitution.

EFFECTIVE DATE. This section is effective August 1, 2009, and applies to crimes committed on or after that date.

Sec. 40. [16A.1391] BEST PRACTICES FOR INVESTIGATIONS.

The commissioner of finance must develop and make available to appointing authorities in the executive, legislative, and judicial branches a best practices policy for conducting investigations in which the appointing authority compels its employees to answer questions about allegedly inappropriate activity. The best practices policy must be designed to facilitate effective investigations, without compromising the ability to prosecute criminal cases when appropriate. Each appointing authority must follow the best practices policy or, in consultation with the attorney general, must develop its own policy for conducting these investigations.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 41. Minnesota Statutes 2008, section 16A.152, is amended by adding a subdivision to read:

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(2) if the commissioner revised the formula after determining the methodology was outdated as provided in paragraph (c); and

(3) if the percentage of the preceding biennium's general fund expenditures and transfers recommended as a budget reserve has changed as a result of an update of or a revision to the formula.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 42. [16A.81] TECHNOLOGY DEVELOPMENT LEASE-PURCHASE FINANCING.

Subdivision 1. Definitions. The following definitions apply to this section.

(a) "Technology system project" means the development, acquisition, installation, and implementation of a technology system that is essential to state operations and is expected to have a long useful life.

(b) "Lease-purchase agreement" means an agreement for the lease and installment purchase of a technology system project, or a portion of the project, between the commissioner, on behalf of the state, and a vendor or a third-party financing source.

(c) "Technology development lease-purchase guidelines" means policies, procedures, and requirements established by the commissioner for technology system projects that are financed pursuant to a lease-purchase agreement.

Subd. 2. Lease-purchase financing. The commissioner may enter into a lease-purchase agreement in an amount sufficient to fund a technology system project and authorize the public or private sale and issuance of certificates of participation, provided that:

(1) the technology system project has been authorized by law to be funded pursuant to a lease-purchase agreement;

(2) the term of the lease-purchase agreement and the related certificates of participation shall not exceed the lesser of the expected useful life of the technology system project financed by the lease-purchase agreement and the certificates or ten years from the date of issuance of the lease-purchase agreement and the certificates;

(3) the principal amount of the lease-purchase agreement and the certificates is sufficient to provide for the costs of issuance, capitalized interest, credit enhancement, or reserves, if any, as required under the lease-purchase agreement;

(4) funds sufficient for payment of lease obligations have been committed in the authorizing legislation for the technology system project for the fiscal year during which the lease-purchase agreement is entered into; provided that no lease-purchase agreement shall obligate the state to appropriate funds sufficient to make lease payments due under such agreement in any future fiscal year; and

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(5) planned expenditures for the technology system project are permitted within the technology development lease-purchase guidelines.

Subd. 3. Covenants. The commissioner may covenant in a lease-purchase agreement that the state will abide by the terms and provisions that are customary in lease-purchase financing transactions, including but not limited to, covenants providing that the state:

(1) will maintain insurance as required under the terms of the lease-purchase agreement;

(2) is responsible to the lessor for any public liability or property damage claims or costs related to the selection, use, or maintenance of the technology system project, to the extent of insurance or self-insurance maintained by the state, and for costs and expenses incurred by the lessor as a result of any default by the state; or

(3) authorizes the lessor to exercise the rights of a secured party with respect to the technology system project or any portion of the project in the event of default or nonappropriation of funds by the state, and for the present recovery of lease payments due during the current term of the lease-purchase agreement as liquidated damages in the event of default.

Subd. 4. Credit and appropriation of proceeds. Proceeds of the lease-purchase agreement and certificates of participation must be credited to a technology lease project fund in the state treasury. Net income from investment of the proceeds, as estimated by the commissioner, must be credited to the appropriate accounts in the technology lease project fund. Funds in the technology lease project fund are appropriated for the purposes described in the authorizing law for each technology development project and this section.

Subd. 5. Transfer of funds. Before the lease-purchase proceeds are received in the technology lease project fund, the commissioner may transfer to that fund from the general fund amounts not exceeding the expected proceeds from the lease-purchase agreement and certificates of participation. The commissioner shall return these amounts to the general fund by transferring proceeds when received. The amounts of these transfers are appropriated from the general fund and from the technology lease project fund.

Subd. 6. Administrative expenses. Actual and necessary travel and subsistence expenses of employees and all other nonsalary expenses incidental to the sale, printing, execution, and delivery of the lease-purchase agreement and certificates of participation may be paid from the lease-purchase proceeds. The lease-purchase proceeds are appropriated for this purpose.

Subd. 7. Treatment of technology lease project fund. Lease-purchase proceeds remaining in the technology lease project fund after the purposes for which the lease-purchase agreement was undertaken are accomplished or abandoned, as determined by the commissioner, must be transferred to the general fund.

Subd. 8. Lease-purchase not public debt. A lease-purchase agreement does not constitute or create a general or moral obligation or indebtedness of the state in excess of the money from time to time appropriated or otherwise available for payments or obligations under such agreement. Payments due under a lease-purchase agreement during a current lease term for which money has been appropriated is a current expense of the state.

Subd. 9. Refunding certificates. The commissioner from time to time may enter into a new lease-purchase agreement and issue and sell certificates of participation for the purpose of refunding any lease-purchase agreement and related certificates of participation then outstanding, including the payment of any redemption premiums, any interest accrued or that is to accrue to the redemption date, and costs related to the issuance and sale of such refunding certificates. The proceeds of any refunding certificates may, in the discretion of the commissioner, be applied to the purchase or payment at maturity of the certificates to be refunded, to the redemption of outstanding lease-purchase agreements and certificates on any redemption date, or to pay interest on the refunding lease-

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purchase agreements and certificates and may, pending such application, be placed in escrow to be applied to such purchase, payment, retirement, or redemption. Any escrowed procee