1.1 	A bill for an act
1.2 	relating to operation of state government finance; changing a paid military leave 
1.3 	provision; modifying provisions in the Veterans Service Office Grant Program; 
1.4 	changing provisions in the Minnesota GI Bill program; establishing presumption 
1.5 	of rehabilitation by an honorable discharge status from military service following 
1.6 	a prior offense; providing for a bid preference for contracts for veteran-owned 
1.7 	small businesses; allowing active duty service members to take a peace officer 
1.8 	reciprocity exam; changing provisions for the Legislative Advisory Commission, 
1.9 	Legislative Coordinating Commission, Legislative Commission on Pensions and 
1.10 	Retirement, and the Legislative Audit Commission; granting authority for the 
1.11 	secretary of state to accept funds from local government units; allowing the 
1.12 	secretary of state to receive certain funds for the address confidentiality program; 
1.13 	allowing the state auditor to charge a onetime user fee for a small city and town 
1.14 	accounting system software; changing certain provisions pertaining to the state 
1.15 	auditor; changing compensation council provisions; requiring determination 
1.16 	of IT costs for certain projects; modifying performance measures for change 
1.17 	items in the state budget proposal; providing for continuing appropriations 
1.18 	under certain circumstances and federal contingency planning; changing certain 
1.19 	Office of Enterprise Technology provisions; changing certain audit provisions 
1.20 	from the state auditor to the legislative auditor; modifying provisions for general 
1.21 	noncommercial radio station grants; making Department of Revenue changes; 
1.22 	repealing the Minnesota Sunset Act; appropriating money;amending Minnesota 
1.23 	Statutes 2012, sections 3.30, subdivision 2; 3.303, by adding a subdivision; 
1.24 	3.85, subdivisions 8, 9; 3.971, subdivision 6, by adding subdivisions; 6.48; 
1.25 	6.56, subdivision 2; 15A.082, subdivisions 1, 2, 3; 16A.10, subdivision 1c; 
1.26 	16A.82; 16E.07, subdivision 6, by adding a subdivision; 32C.04; 65B.84, 
1.27 	subdivision 1; 129D.14, subdivisions 2, 3; 129D.155; 161.1419, subdivision 3; 
1.28 	192.26; 197.608, subdivisions 3, 4, 5, 6; 197.791, subdivisions 4, 5; 254A.035, 
1.29 	subdivision 2; 254A.04; 256B.093, subdivision 1; 260.835, subdivision 2; 
1.30 	270C.69, subdivision 1; 289A.20, subdivisions 2, 4; 289A.26, subdivision 2a; 
1.31 	295.55, subdivision 4; 297F.09, subdivision 7; 297G.09, subdivision 6; 297I.30, 
1.32 	by adding a subdivision; 297I.35, subdivision 2; 364.03, subdivision 3; 469.3201; 
1.33 	471.699; 473.843, subdivision 3; 626.8517; Laws 2012, chapter 278, article 1, 
1.34 	section 5; proposing coding for new law in Minnesota Statutes, chapters 5; 5B; 
1.35 	6; 16A; 16E; 297I; 471; repealing Minnesota Statutes 2012, sections 3.304, 
1.36 	subdivisions 1, 5; 3.885, subdivision 10; 3D.01; 3D.02; 3D.03; 3D.04; 3D.045; 
1.37 	3D.05; 3D.06; 3D.065; 3D.07; 3D.08; 3D.09; 3D.10; 3D.11; 3D.12; 3D.13; 
1.38 	3D.14; 3D.15; 3D.16; 3D.17; 3D.18; 3D.19; 3D.20; 3D.21, subdivisions 2, 3, 4, 
2.1 	5, 6, 7, 8; 6.58; 168A.40, subdivisions 3, 4; 197.608, subdivision 2a; 270C.145; 
2.2 	Laws 2012, chapter 278, article 1, section 6.
2.3 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.4 	ARTICLE 1
2.5 	STATE GOVERNMENT APPROPRIATIONS

2.6	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 	
2.7 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.8 	agencies and for the purposes specified in this article. The appropriations are from the 
2.9 	general fund, or another named fund, and are available for the fiscal years indicated 
2.10 	for each purpose. The figures "2014" and "2015" used in this article mean that the 
2.11 	appropriations listed under them are available for the fiscal year ending June 30, 2014, or 
2.12 	June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal 
2.13 	year 2015. "The biennium" is fiscal years 2014 and 2015. 

2.14				APPROPRIATIONS
	
2.15				Available for the Year
	
2.16				Ending June 30
	
2.17					2014
		2015

2.18	Sec. 2. LEGISLATURE

2.19	Subdivision 1.Total Appropriation
 	$
	67,708,000
	$
	67,710,000

2.20	Appropriations by Fund
	
2.21		2014
	2015
	
2.22	General
	67,580,000
	67,582,000
	
2.23	Health Care Access
	128,000
	128,000
	
2.24 	The amounts that may be spent for each 
2.25 	purpose are specified in the following 
2.26 	subdivisions.

2.27	Subd. 2.Senate
 		22,212,000
		22,212,000

2.28	Subd. 3.House of Representatives
 		29,862,000
		29,863,000
	
2.29 	During the biennium ending June 30, 2015, 
2.30 	any revenues received by the house of 
2.31 	representatives from voluntary donations 
2.32 	to support broadcast or print media are 
2.33 	appropriated to the house of representatives.

2.34	Subd. 4.Legislative Coordinating Commission
 		15,634,000
		15,635,000

3.1	Appropriations by Fund
	
3.2	General
	15,506,000
	15,507,000
	
3.3	Health Care Access 
	128,000
	128,000
	
3.4 	$139,000 each year of the appropriation 
3.5 	from the general fund is transferred from 
3.6 	the Legislative Coordinating Commission 
3.7 	operations budget to the budget for the office 
3.8 	of the legislative auditor. The Legislative 
3.9 	Audit Commission is requested to direct 
3.10 	the legislative auditor to use the additional 
3.11 	funds to conduct additional evaluations of 
3.12 	executive branch state agencies to determine:
3.13 	(1) the efficiency and effectiveness with 
3.14 	which the agency operates;
3.15 	(2) an identification of the mission, goals, 
3.16 	and objectives intended for the agency, and 
3.17 	the extent to which the mission, goals, and 
3.18 	objectives have been achieved; and
3.19 	(3) the extent to which the jurisdiction of the 
3.20 	agency and the programs administered by the 
3.21 	agency overlap or duplicate those of other 
3.22 	agencies, the extent to which the agency 
3.23 	coordinates with those agencies, and the 
3.24 	extent to which the programs administered 
3.25 	by the agency can be consolidated with the 
3.26 	programs of other state agencies.

3.27
3.28	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	3,217,000
	$
	3,240,000
	
3.29 	(a) This appropriation is to fund the Office of 
3.30 	the Governor and Lieutenant Governor.
3.31 	(b) $19,000 the first year and $19,000 the 
3.32 	second year are for necessary expenses in 
3.33 	the normal performance of the governor's 
4.1 	and lieutenant governor's duties for which no 
4.2 	other reimbursement is provided.
4.3 	(c) By September 1 of each year, the 
4.4 	commissioner of management and budget 
4.5 	shall report to the chairs and ranking 
4.6 	minority members of the senate State 
4.7 	Government Innovation and Veterans Affairs 
4.8 	Committee and the house of representatives 
4.9 	State Government Finance Committee any 
4.10 	personnel costs incurred by the Offices of the 
4.11 	Governor and Lieutenant Governor that were 
4.12 	supported by appropriations to other agencies 
4.13 	during the previous fiscal year. The Office 
4.14 	of the Governor shall inform the chairs and 
4.15 	ranking minority members of the committees 
4.16 	before initiating any interagency agreements.
4.17 	(d) During the biennium ending June 30, 
4.18 	2015, the Office of the Governor may not 
4.19 	receive payments of more than $720,000 
4.20 	each fiscal year from other executive 
4.21 	agencies under Minnesota Statutes, section 
4.22 	15.53, to support office costs, not including 
4.23 	the residence groundskeeper, incurred by 
4.24 	the office. Payments received under this 
4.25 	paragraph must be deposited in a special 
4.26 	revenue account. Money in the account is 
4.27 	appropriated to the Office of the Governor. 
4.28 	The authority in this paragraph supersedes 
4.29 	other law enacted in 2013 that limits the 
4.30 	ability of the office to enter into agreements 
4.31 	relating to office costs with other executive 
4.32 	branch agencies or prevents the use of 
4.33 	appropriations made to other agencies for 
4.34 	agreements with the office under Minnesota 
4.35 	Statutes, section 15.53.

5.1	Sec. 4. STATE AUDITOR
 	$
	1,980,000
	$
	2,100,000

5.2	Sec. 5. ATTORNEY GENERAL
 	$
	23,446,000
	$
	23,606,000

5.3	Appropriations by Fund
	
5.4		2014
	2015
	
5.5	General
	21,229,000
	21,389,000
	
5.6
5.7	State Government 
Special Revenue
	1,822,000
	1,822,000
	
5.8	Environmental
	145,000
	145,000
	
5.9	Remediation
	250,000
	250,000

5.10	Sec. 6. SECRETARY OF STATE
 	$
	5,707,000
	$
	6,393,000
	
5.11 	Any funds available in the account 
5.12 	established in Minnesota Statutes, section 
5.13 	5.30, pursuant to the Help America Vote Act, 
5.14 	are appropriated for the purposes and uses 
5.15 	authorized by federal law.
5.16 	Redistricting Case. $355,000 the first year 
5.17 	is appropriated to the secretary of state to 
5.18 	be used to pay attorney fees as ordered by 
5.19 	the court in the legislative and congressional 
5.20 	redistricting case Hippert et al v. Ritchie 
5.21 	et al, A11-152, and interest thereon. This 
5.22 	appropriation is available for expenditure the 
5.23 	day following final enactment.

5.24
5.25	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	1,006,000
	$
	1,013,000

5.26	Sec. 8. INVESTMENT BOARD
 	$
	139,000
	$
	139,000

5.27	Sec. 9. ADMINISTRATIVE HEARINGS
 	$
	7,731,000
	$
	7,507,000

5.28	Appropriations by Fund
	
5.29		2014
	2015
	
5.30	General
	481,000
	257,000
	
5.31
5.32	Workers' 
Compensation
	7,250,000
	7,250,000
	
6.1 	$130,000 in the first year is for the cost 
6.2 	of considering complaints filed under 
6.3 	Minnesota Statutes, section 211B.32. Any 
6.4 	amount of this appropriation that remains 
6.5 	unspent at the end of the biennium must be 
6.6 	canceled to the general account of the state 
6.7 	elections campaign fund. The base for fiscal 
6.8 	year 2016 is $130,000 to be available for the 
6.9 	biennium, under the same terms.
6.10 	Data practices hearings. $36,000 the first 
6.11 	year is to cover the fiscal year 2013 costs for 
6.12 	data practices hearings.
6.13 	Campaign violations hearings. $60,000 the 
6.14 	first year is to cover the costs of campaign 
6.15 	violations hearings. This is a onetime 
6.16 	appropriation.

6.17
6.18	Sec. 10. OFFICE OF ENTERPRISE 
TECHNOLOGY
 	$
	2,467,000
	$
	2,505,000
	
6.19 	During the biennium ending June 30, 2015, 
6.20 	the Office of Enterprise Technology must 
6.21 	not charge fees to a public noncommercial 
6.22 	educational television broadcast station 
6.23 	eligible for funding under Minnesota 
6.24 	Statutes, chapter 129D, for access to the 
6.25 	state broadcast infrastructure. If the access 
6.26 	fees not charged to public noncommercial 
6.27 	educational television broadcast stations total 
6.28 	more than $400,000 for the biennium, the 
6.29 	office may charge for access fees in excess 
6.30 	of these amounts.

6.31	Sec. 11. ADMINISTRATION

6.32	Subdivision 1.Total Appropriation
 	$
	20,498,000
	$
	20,535,000
	
7.1 	The amounts that may be spent for each 
7.2 	purpose are specified in the following 
7.3 	subdivisions.

7.4	Subd. 2.Government and Citizen Services
 		7,698,000
		7,668,000
	
7.5 	$74,000 the first year and $74,000 the second 
7.6 	year are for the Council on Developmental 
7.7 	Disabilities.
7.8 	Nellie Stone Johnson bust or statue.
7.9 	 $30,000 is to place a bust or statue of Nellie 
7.10 	Stone Johnson in the State Capitol Building. 
7.11 	This appropriation is contingent on receipt of 
7.12 	an equal nonstate match. The commissioner 
7.13 	must follow the process in Minnesota 
7.14 	Statutes, sections 138.67 to 138.70, in the 
7.15 	acquisition and placement of the bust or 
7.16 	statue. This appropriation is available until 
7.17 	expended.

7.18	Subd. 3.Administrative Management Support
 		1,823,000
		1,890,000

7.19	Subd. 4.Fiscal Agent
 		10,977,000
		10,977,000
	
7.20 	The appropriations under this section are to 
7.21 	the commissioner of administration for the 
7.22 	purposes specified.

7.23	In Lieu of Rent
					
7.24 	$8,158,000 the first year and $8,158,000 
7.25 	the second year are for office space costs of 
7.26 	the legislature and veterans organizations, 
7.27 	ceremonial space, and statutorily free space.

7.28	Public Broadcasting
					
7.29 	(a) $1,685,000 the first year and $1,685,000 
7.30 	the second year are for matching grants for 
7.31 	public television.
7.32 	(b) $315,000 the first year and $315,000 
7.33 	the second year are for public television 
8.1 	equipment grants. Equipment or matching 
8.2 	grant allocations shall be made after 
8.3 	considering the recommendations of the 
8.4 	Minnesota Public Television Association.
8.5 	(c) $392,000 the first year and $392,000 the 
8.6 	second year are for community service grants 
8.7 	to public educational radio stations. This 
8.8 	appropriation may be used to disseminate 
8.9 	emergency information in foreign languages.
8.10 	(d) $117,000 the first year and $117,000 
8.11 	the second year are for equipment grants 
8.12 	to public educational radio stations. This 
8.13 	appropriation may be used for the repair, 
8.14 	rental, and purchase of equipment including 
8.15 	equipment under $500.
8.16 	(e) The grants in paragraphs (c) and (d) 
8.17 	must be allocated after considering the 
8.18 	recommendations of the Association of 
8.19 	Minnesota Public Educational Radio Stations 
8.20 	under Minnesota Statutes, section 129D.14.
8.21 	(f) $310,000 the first year and $310,000 
8.22 	the second year are for equipment grants 
8.23 	to Minnesota Public Radio, Inc., including 
8.24 	upgrades to Minnesota's Emergency Alert 
8.25 	and AMBER Alert Systems.
8.26 	(g) Any unencumbered balance remaining 
8.27 	the first year for grants to public television or 
8.28 	radio stations does not cancel and is available 
8.29 	for the second year.

8.30
8.31
8.32	Sec. 12. CAPITOL AREA 
ARCHITECTURAL AND PLANNING 
BOARD
 	$
	328,000
	$
	330,000

8.33
8.34	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	24,172,000
	$
	20,627,000
	
9.1 	Statewide Budget System. $4,500,000 for 
9.2 	the biennium is to continue development 
9.3 	of the new statewide budget system and to 
9.4 	develop new capabilities including, but not 
9.5 	limited to, capital budget and fiscal notes.

9.6	Sec. 14. REVENUE

9.7	Subdivision 1.Total Appropriation
 	$
	141,701,000
	$
	142,203,000

9.8	Appropriations by Fund
	
9.9		2014
	2015
	
9.10	General
	137,466,000
	137,968,000
	
9.11	Health Care Access
	1,749,000
	1,749,000
	
9.12
9.13	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
9.14	Environmental
	303,000
	303,000

9.15	Subd. 2.Tax System Management
 		112,879,000
		113,174,000

9.16	Appropriations by Fund
	
9.17	General
	108,644,000
	108,939,000
	
9.18	Health Care Access
	1,749,000
	1,749,000
	
9.19
9.20	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
9.21	Environmental
	303,000
	303,000
	
9.22 	County Technical Assistance Grants. (a) 
9.23 	The commissioner of revenue may make 
9.24 	technical assistance grants to counties to 
9.25 	fund development, implementation, or 
9.26 	maintenance of data collection and data 
9.27 	processing systems that will facilitate 
9.28 	improved reporting of property tax data 
9.29 	on parcels and portions of parcels to 
9.30 	the commissioner for analytical and 
9.31 	administrative use. The grants may be made 
9.32 	in the order they are requested, or on some 
9.33 	other basis determined by the commissioner. 
9.34 	The commissioner shall determine whether to 
9.35 	require an application or recipient agreement 
10.1 	and shall determine the form and content of 
10.2 	the application or agreement.
10.3 	(b) $300,000 is appropriated to the 
10.4 	commissioner from the general fund in fiscal 
10.5 	year 2014 to make grants to counties as 
10.6 	provided in this section. This appropriation 
10.7 	is available for fiscal years 2014 and 2015 
10.8 	only, and does not become part of the base.
10.9 	Appropriation; taxpayer assistance. (a) 
10.10 	$200,000 in fiscal year 2014, and $200,000 
10.11 	in fiscal year 2015, are appropriated from the 
10.12 	general fund to the commissioner of revenue 
10.13 	to make grants to one or more nonprofit 
10.14 	organizations, qualifying under section 
10.15 	501(c)(3) of the Internal Revenue Code of 
10.16 	1986, to coordinate, facilitate, encourage, and 
10.17 	aid in the provision of taxpayer assistance 
10.18 	services. The unencumbered balance in the 
10.19 	first year does not cancel but is available for 
10.20 	the second year.
10.21 	(b) For purposes of this section, "taxpayer 
10.22 	assistance services" means accounting 
10.23 	and tax preparation services provided by 
10.24 	volunteers to low-income, elderly, and 
10.25 	disadvantaged Minnesota residents to help 
10.26 	them file federal and state income tax returns 
10.27 	and Minnesota property tax refund claims 
10.28 	and to provide personal representation before 
10.29 	the Department of Revenue and Internal 
10.30 	Revenue Service.

10.31	Subd. 3.Debt Collection Management
 		28,822,000
		29,029,000

10.32	Sec. 15. AMATEUR SPORTS COMMISSION
 	$
	250,000
	$
	253,000

10.33
10.34	Sec. 16. COUNCIL ON BLACK 
MINNESOTANS
 	$
	294,000
	$
	297,000

11.1
11.2	Sec. 17. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	256,000
	$
	258,000

11.3
11.4	Sec. 18. COUNCIL ON AFFAIRS OF 
CHICANO/LATINO PEOPLE
 	$
	277,000
	$
	280,000

11.5	Sec. 19. INDIAN AFFAIRS COUNCIL
 	$
	466,000
	$
	469,000

11.6
11.7	Sec. 20. MINNESOTA HISTORICAL 
SOCIETY

11.8	Subdivision 1.Total Appropriation
 	$
	21,939,000
	$
	21,884,000
	
11.9 	The amounts that may be spent for each 
11.10 	purpose are specified in the following 
11.11 	subdivisions.

11.12	Subd. 2.Operations and Programs
 		21,533,000
		21,662,000
	
11.13 	Notwithstanding Minnesota Statutes, section 
11.14 	138.668, the Minnesota Historical Society 
11.15 	may not charge a fee for its general tours at 
11.16 	the Capitol, but may charge fees for special 
11.17 	programs other than general tours.

11.18	Subd. 3.Fiscal Agent

11.19	(a) Minnesota International Center
		39,000
		39,000

11.20	(b) Minnesota Air National Guard Museum
		14,000
		-0-

11.21	(c) Minnesota Military Museum
		170,000
		-0-

11.22	(d) Farmamerica
		115,000
		115,000

11.23	(e) Hockey Hall of Fame
		68,000
		68,000
	
11.24 	Balances Forward. Any unencumbered 
11.25 	balance remaining in this subdivision the first 
11.26 	year does not cancel but is available for the 
11.27 	second year of the biennium.

11.28	Sec. 21. BOARD OF THE ARTS

11.29	Subdivision 1.Total Appropriation
 	$
	7,508,000
	$
	7,510,000
	
12.1 	The amounts that may be spent for each 
12.2 	purpose are specified in the following 
12.3 	subdivisions.

12.4	Subd. 2.Operations and Services
 		569,000
		571,000

12.5	Subd. 3.Grants Program
 		4,800,000
		4,800,000

12.6	Subd. 4.Regional Arts Councils
 		2,139,000
		2,139,000
	
12.7 	Unencumbered balance available. Any 
12.8 	unencumbered balance remaining in this 
12.9 	section the first year does not cancel, but is 
12.10 	available for the second year of the biennium.

12.11
12.12	Sec. 22. MINNESOTA HUMANITIES 
CENTER
 	$
	251,000
	$
	251,000

12.13
12.14	Sec. 23. SCIENCE MUSEUM OF 
MINNESOTA
 	$
	1,079,000
	$
	1,079,000

12.15
12.16	Sec. 24. GENERAL CONTINGENT 
ACCOUNTS
 	$
	883,000
	$
	500,000

12.17	Appropriations by Fund
	
12.18		2014
	2015
	
12.19	General
	383,000
	-0-
	
12.20
12.21	State Government 
Special Revenue
	400,000
	400,000
	
12.22
12.23	Workers' 
Compensation
	100,000
	100,000
	
12.24 	(a) The appropriations in this section 
12.25 	may only be spent with the approval of 
12.26 	the governor after consultation with the 
12.27 	Legislative Advisory Commission pursuant 
12.28 	to Minnesota Statutes, section 3.30.
12.29 	(b) If an appropriation in this section for 
12.30 	either year is insufficient, the appropriation 
12.31 	for the other year is available for it.
12.32 	(c) If a contingent account appropriation 
12.33 	is made in one fiscal year, it should be 
12.34 	considered a biennial appropriation.

13.1	Sec. 25. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
13.2 	These appropriations are to be spent by the 
13.3 	commissioner of management and budget 
13.4 	according to Minnesota Statutes, section 
13.5 	3.736, subdivision 7. If the appropriation for 
13.6 	either year is insufficient, the appropriation 
13.7 	for the other year is available for it.

13.8
13.9	Sec. 26. MINNESOTA STATE RETIREMENT 
SYSTEM

13.10	Subdivision 1.Total Appropriation
 	$
	3,891,000
	$
	3,964,000
	
13.11 	The amounts that may be spent for each 
13.12 	purpose are specified in the following 
13.13 	subdivisions.

13.14	Subd. 2.Legislators
 		3,406,000
		3,475,000
	
13.15 	Under Minnesota Statutes, sections 3A.03, 
13.16 	subdivision 2; 3A.04, subdivisions 3 and 4; 
13.17 	and 3A.115.

13.18	Subd. 3. Constitutional Officers
 		485,000
		489,000
	
13.19 	Under Minnesota Statutes, section 352C.001, 
13.20 	if an appropriation in this section for either 
13.21 	year is insufficient, the appropriation for the 
13.22 	other year is available for it.

13.23
13.24	Sec. 27. MINNEAPOLIS EMPLOYEES 
RETIREMENT FUND DIVISION ACCOUNT
 	$
	24,000,000
	$
	24,000,000
	
13.25 	These amounts are estimated to be needed 
13.26 	under Minnesota Statutes, section 353.505.

13.27
13.28	Sec. 28. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	15,454,000
	$
	15,454,000
	
13.29 	The amounts estimated to be needed are as 
13.30 	follows:
13.31 	(a) Special direct state aid. $12,954,000 the 
13.32 	first year and $12,954,000 the second year 
14.1 	are for special direct state aid authorized 
14.2 	under Minnesota Statutes, section 354A.12, 
14.3 	subdivisions 3a and 3c.
14.4 	(b) Special direct state matching aid.
14.5 	 $2,500,000 the first year and $2,500,000 
14.6 	the second year are for special direct state 
14.7 	matching aid authorized under Minnesota 
14.8 	Statutes, section 354.435.

14.914.10
	Sec. 29. ST. PAUL TEACHERS 
RETIREMENT FUND
 	$
	2,827,000
	$
	2,827,000
	
14.11 	The amounts estimated to be needed for 
14.12 	special direct state aid to first class city 
14.13 	teachers retirement funds authorized under 
14.14 	Minnesota Statutes, section 354A.12, 
14.15 	subdivisions 3a and 3c.

14.16
14.17	Sec. 30. DULUTH TEACHERS 
RETIREMENT FUND
 	$
	346,000
	$
	346,000
	
14.18 	The amounts estimated to be needed for 
14.19 	special direct state aid to first class city 
14.20 	teachers retirement funds authorized under 
14.21 	Minnesota Statutes, section 354A.12, 
14.22 	subdivisions 3a and 3c.

14.23 	Sec. 31. TELECOMMUNICATIONS ACCESS MINNESOTA FUND; 
14.24 	APPROPRIATIONS.
 14.25 	In addition to the appropriation authorized in Minnesota Statutes, section 237.52, the 
14.26 	following amounts are appropriated from the telecommunications access Minnesota fund:
14.27 	(1) $290,000 each year is appropriated to the chief information officer for the 
14.28 	purpose of coordinating technology accessibility and usability; and
14.29 	(2) $150,000 each year is appropriated to the Legislative Coordinating Commission 
14.30 	for the purpose of providing captioning of legislative activity on the commission's Web 
14.31 	site and for a consolidated access fund for other state agencies.

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

15.1 	ARTICLE 2
15.2 	MILITARY AND VETERANS AFFAIRS

15.3	Section 1. MILITARY AND VETERANS AFFAIRS APPROPRIATIONS.
 	
15.4 	The sums shown in the columns marked "Appropriations" are appropriated to the 
15.5 	agencies and for the purposes specified in this article. The appropriations are from the 
15.6 	general fund and are available for the fiscal years indicated for each purpose. The figures 
15.7 	"2014" and "2015" used in this article mean that the appropriations listed under them are 
15.8 	available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. "The 
15.9 	first year" is fiscal year 2014. "The second year" is fiscal year 2015. "The biennium" is 
15.10 	fiscal years 2014 and 2015.

15.11				APPROPRIATIONS
	
15.12				Available for the Year
	
15.13				Ending June 30
	
15.14					2014
		2015

15.15	Sec. 2. MILITARY AFFAIRS

15.16	Subdivision 1.Total Appropriation
 	$
	19,417,000
	$
	19,468,000
	
15.17 	The amounts that may be spent for each 
15.18 	purpose are specified in the following 
15.19 	subdivisions.

15.20	Subd. 2.Maintenance of Training Facilities
 		6,710,000
		6,761,000

15.21	Subd. 3.General Support
 		2,359,000
		2,359,000

15.22	Subd. 4.Enlistment Incentives
 		10,348,000
		10,348,000
	
15.23 	If appropriations for either year of the 
15.24 	biennium are insufficient, the appropriation 
15.25 	from the other year is available. The 
15.26 	appropriations for enlistment incentives are 
15.27 	available until expended.

15.28	Sec. 3. VETERANS AFFAIRS

15.29	Subdivision 1.Total Appropriation
 	$
	63,133,000
	$
	62,854,000
	
15.30 	The amounts that may be spent for each 
15.31 	purpose are specified in the following 
15.32 	subdivisions.

16.1	Subd. 2.Veterans Services
 		16,101,000
		16,341,000
	
16.2 	IT Upgrades. $618,000 in fiscal year 2014 
16.3 	and $382,000 in fiscal year 2015 are to 
16.4 	improve and modernize the department's 
16.5 	information technology systems. These 
16.6 	funds shall be transferred to the Office of 
16.7 	Enterprise Technology. This is a onetime 
16.8 	transfer and is available until spent.
16.9 	Veterans Cemetery in Fillmore County.
16.10 	 $425,000 in fiscal year 2015 is for operation 
16.11 	of the new veterans cemetery in Fillmore 
16.12 	County. This amount is added to the 
16.13 	program's base funding.
16.14 	Honor Guards. $200,000 each year is 
16.15 	for compensation for honor guards at 
16.16 	the funerals of veterans under Minnesota 
16.17 	Statutes, section 197.231. This amount is 
16.18 	added to the program's base funding.
16.19 	Minnesota GI Bill. $200,000 each year is for 
16.20 	the costs of administering the Minnesota GI 
16.21 	Bill on-the-job training and apprenticeship 
16.22 	program under Minnesota Statutes, section 
16.23 	197.791.
16.24 	Gold Star Program. $100,000 each year 
16.25 	is for administering the Gold Star Program 
16.26 	for surviving family members of deceased 
16.27 	veterans. This amount is added to the 
16.28 	program's base funding.
16.29 	County Veterans Service Office.
16.30 	 $1,100,000 each year is for funding the 
16.31 	County Veterans Service Office grant 
16.32 	program under Minnesota Statutes, section 
16.33 	197.608.
17.1 	Veterans Service Organizations. $353,000 
17.2 	each year is for grants to the following 
17.3 	congressionally chartered veterans service 
17.4 	organizations, as designated by the 
17.5 	commissioner: Disabled American Veterans, 
17.6 	Military Order of the Purple Heart, American 
17.7 	Legion, Veterans of Foreign Wars, Vietnam 
17.8 	Veterans of America, AMVETS, and 
17.9 	Paralyzed Veterans of America. This funding 
17.10 	must be allocated in direct proportion to 
17.11 	the funding currently being provided by the 
17.12 	commissioner to these organizations.
17.13 	Veterans Paramedic Apprenticeship 
17.14 	Program. All unspent funds, estimated to 
17.15 	be $110,000, from the Veterans Paramedic 
17.16 	Apprenticeship Program, from the onetime 
17.17 	appropriation under Laws 2009, chapter 79, 
17.18 	article 13, section 7, are canceled to the 
17.19 	general fund on July 1, 2013.

17.20	Subd. 3.Veterans Homes
 		47,032,000
		46,513,000
	
17.21 	Veterans Homes Special Revenue Account.
17.22 	 The general fund appropriations made to the 
17.23 	department may be transferred to a veterans 
17.24 	homes special revenue account in the special 
17.25 	revenue fund in the same manner as other 
17.26 	receipts are deposited according to Minnesota 
17.27 	Statutes, section 198.34, and are appropriated 
17.28 	to the department for the operation of 
17.29 	veterans homes facilities and programs.
17.30 	IT Upgrades. $2,047,000 in fiscal year 2014 
17.31 	and $1,528,000 in fiscal year 2015 are to 
17.32 	improve and modernize the department's 
17.33 	information technology systems. These 
17.34 	funds shall be transferred to the Office of 
18.1 	Enterprise Technology. This is a onetime 
18.2 	transfer and is available until spent.
18.3 	Maximize Federal Reimbursements.
18.4 	 The department will seek opportunities 
18.5 	to maximize federal reimbursements of 
18.6 	Medicare-eligible expenses and will provide 
18.7 	annual reports to the commissioner of 
18.8 	management and budget on the federal 
18.9 	Medicare reimbursements received. 
18.10 	Contingent upon future federal Medicare 
18.11 	receipts, reductions to the homes' general 
18.12 	fund appropriation may be made.

18.13 	ARTICLE 3
18.14 	MILITARY AND VETERANS AFFAIRS PROVISIONS

18.15 	Section 1. Minnesota Statutes 2012, section 192.26, is amended to read:
18.16 	192.26 STATE AND MUNICIPAL OFFICERS AND EMPLOYEES NOT TO 
18.17 	LOSE PAY WHILE ON MILITARY DUTY.
18.18 		Subdivision 1.Authorized leave. Subject to the conditions hereinafter prescribed, 
18.19 	any officer or employee of the state or of any political subdivision, municipal corporation, 
18.20 	or other public agency of the state who shall be a member of the National Guard, or any 
18.21 	other component of the militia of the state now or hereafter organized or constituted 
18.22 	under state or federal law, or who shall be a member of the officers' reserve corps, the 
18.23 	enlisted reserve corps, the Naval Reserve, the Marine Corps reserve, or any other reserve 
18.24 	component of the military or naval forces of the United States now or hereafter organized 
18.25 	or constituted under federal law, shall be entitled to leave of absence from the public 
18.26 	office or employment without loss of pay, seniority status, efficiency rating, vacation, 
18.27 	sick leave, or other benefits for all the time when engaged with such organization or 
18.28 	component in training or active service ordered or authorized by proper authority pursuant 
18.29 	to law, whether for state or federal purposes, but not exceeding a total of 15 days in any 
18.30 	calendar year. The state or political subdivision, municipal corporation, or other public 
18.31 	agency shall allow the officer or employee to choose when during the calendar year to 
18.32 	take the 15 days of paid military leave. The officer or employee may choose to use all of 
18.33 	the 15 days of paid military leave at one time or, in the alternative, the 15 days of paid 
18.34 	military leave may be divided and taken throughout the calendar year at the discretion of 
19.1 	the officer or employee. Such leave shall be allowed only in case the required military or 
19.2 	naval service is satisfactorily performed, which shall be presumed unless the contrary is 
19.3 	established. Such leave shall not be allowed unless the officer or employee (1) returns to 
19.4 	the public position immediately on being relieved from such military or naval service and 
19.5 	not later than the expiration of the time herein limited for such leave, or (2) is prevented 
19.6 	from so returning by physical or mental disability or other cause not due to the officer's or 
19.7 	employee's own fault, or (3) is required by proper authority to continue in such military or 
19.8 	naval service beyond the time herein limited for such leave.

19.9 	Sec. 2. Minnesota Statutes 2012, section 197.608, subdivision 3, is amended to read:
19.10 		Subd. 3.Eligibility. (a) To be eligible for a grant under this program subdivision 6, 
19.11 	a county must employ a county veterans service officer as authorized by sections 197.60
19.12 	and 197.606, who is certified to serve in this position by the commissioner.
19.13 	(b) A county that employs a newly hired county veterans service officer who is 
19.14 	serving an initial probationary period and who has not been certified by the commissioner 
19.15 	is eligible to receive a grant under subdivision 2a 6 for one year from the date the county 
19.16 	veterans service officer is appointed.
19.17 	(c) Except for the situation described in paragraph (b), A county whose county 
19.18 	veterans service officer does not receive certification during any year of the three-year 
19.19 	cycle is not eligible to receive a grant during the remainder of that cycle or the next 
19.20 	three-year cycle by the end of the first year of the county veterans service officer's 
19.21 	appointment is ineligible for the grant under subdivision 6 until the county veterans 
19.22 	service officer receives certification.

19.23 	Sec. 3. Minnesota Statutes 2012, section 197.608, subdivision 4, is amended to read:
19.24 		Subd. 4.Grant process. (a) The commissioner shall determine the process for 
19.25 	awarding grants. A grant may be used only for the purpose of enhancing the operations of 
19.26 	the County Veterans Service Office.
19.27 	(b) The commissioner shall provide a list of qualifying uses for grant expenditures 
19.28 	as developed in subdivision 5 and shall approve a grant under subdivision 6 only for a 
19.29 	qualifying use and if there are sufficient funds remaining in the grant program to cover the 
19.30 	full amount of the grant.
19.31 	(c) The commissioner is authorized to use any unexpended funding for this program 
19.32 	to provide training and education for county veterans service officers.

19.33 	Sec. 4. Minnesota Statutes 2012, section 197.608, subdivision 5, is amended to read:
20.1 		Subd. 5.Qualifying uses. The commissioner shall consult with the Minnesota 
20.2 	Association of County Veterans Service Officers in developing a list of qualifying uses for 
20.3 	grants awarded under this program subdivision 6. 
20.4 	The commissioner is authorized to use any unexpended funding for this program to 
20.5 	provide training and education for county veterans service officers.

20.6 	Sec. 5. Minnesota Statutes 2012, section 197.608, subdivision 6, is amended to read:
20.7 		Subd. 6.Grant amount. (a) Each county is eligible to receive an annual grant of 
20.8 	$7,500 for the following purposes: 
20.9 	(1) to provide outreach to the county's veterans;
20.10 	(2) to assist in the reintegration of combat veterans into society;
20.11 	(3) to collaborate with other social service agencies, educational institutions, and 
20.12 	other community organizations for the purposes of enhancing services offered to veterans;
20.13 	(4) to reduce homelessness among veterans; and
20.14 	(5) to enhance the operations of the county veterans service office.
20.15 	(b) In addition to the grant amount in paragraph (a), each county is eligible to receive 
20.16 	an additional annual grant under this paragraph. The amount of each additional annual 
20.17 	grant must be determined by the commissioner and may not exceed:
20.18 	(1) $1,400 $0, if the county's veteran population is less than 1,000;
20.19 	(2) $2,800 $2,500, if the county's veteran population is 1,000 or more but less than 
20.20 	3,000;
20.21 	(3) $4,200 $5,000, if the county's veteran population is 3,000 or more but less then 
20.22 	10,000 than 4,999; or
20.23 	(4) $5,600 $7,500, if the county's veteran population is 10,000 5,000 or more. but 
20.24 	less than 9,999;
20.25 	(5) $10,000, if the county's veteran population is 10,000 or more but less than 19,999;
20.26 	(6) $15,000, if the county's veteran population is 20,000 or more but less than 
20.27 	29,999; or
20.28 	(7) $20,000, if the county's veteran population is 30,000 or more.
20.29 	(c) The Minnesota Association of County Veterans Service Officers is eligible to 
20.30 	receive an annual grant of $50,000. The grant shall be used for administrative costs of 
20.31 	the association, certification of mandated county veterans service officer training and 
20.32 	accreditation, and costs associated with reintegration services.
20.33 	The veteran population of each county shall be determined by the figure supplied by 
20.34 	the United States Department of Veterans Affairs, as adopted by the commissioner.

21.1 	Sec. 6. Minnesota Statutes 2012, section 197.791, subdivision 4, is amended to read:
21.2 		Subd. 4.Eligibility. (a) A person is eligible for educational assistance under this 
21.3 	section if:
21.4 	(1) the person is:
21.5 	(i) a veteran who is serving or has served honorably in any branch or unit of the 
21.6 	United States armed forces at any time on or after September 11, 2001;
21.7 	(ii) a nonveteran who has served honorably for a total of five years or more 
21.8 	cumulatively as a member of the Minnesota National Guard or any other active or reserve 
21.9 	component of the United States armed forces, and any part of that service occurred on or 
21.10 	after September 11, 2001;
21.11 	(iii) the surviving spouse or child of a person who has served in the military at any 
21.12 	time on or after September 11, 2001, and who has died as a direct result of that military 
21.13 	service, only if the surviving spouse or child is eligible to receive federal education 
21.14 	benefits under United States Code, title 38, chapter 33, as amended, or United States 
21.15 	Code, title 38, chapter 35, as amended; or
21.16 	(iv) the spouse or child of a person who has served in the military at any time on or 
21.17 	after September 11, 2001, and who has a total and permanent service-connected disability 
21.18 	as rated by the United States Veterans Administration, only if the spouse or child is 
21.19 	eligible to receive federal education benefits under United States Code, title 38, chapter 
21.20 	33, as amended, or United States Code, title 38, chapter 35, as amended; and
21.21 	(2) the person receiving the educational assistance is a Minnesota resident, as 
21.22 	defined in section 136A.101, subdivision 8; and
21.23 	(3) the person receiving the educational assistance:
21.24 	(i) is an undergraduate or graduate student at an eligible institution;
21.25 	(ii) is maintaining satisfactory academic progress as defined by the institution for 
21.26 	students participating in federal Title IV programs;
21.27 	(iii) is enrolled in an education program leading to a certificate, diploma, or degree 
21.28 	at an eligible institution;
21.29 	(iv) has applied for educational assistance under this section prior to the end of the 
21.30 	academic term for which the assistance is being requested;
21.31 	(v) is in compliance with child support payment requirements under section 
21.32 	136A.121, subdivision 2, clause (5); and
21.33 	(vi) has completed the Free Application for Federal Student Aid (FAFSA).
21.34 	(b) A person's eligibility terminates when the person becomes eligible for benefits 
21.35 	under section 135A.52.
22.1 	(c) To determine eligibility, the commissioner may require official documentation, 
22.2 	including the person's federal form DD-214 or other official military discharge papers; 
22.3 	correspondence from the United States Veterans Administration; birth certificate; marriage 
22.4 	certificate; proof of enrollment at an eligible institution; signed affidavits; proof of 
22.5 	residency; proof of identity; or any other official documentation the commissioner 
22.6 	considers necessary to determine eligibility.
22.7 	(d) The commissioner may deny eligibility or terminate benefits under this section 
22.8 	to any person who has not provided sufficient documentation to determine eligibility for 
22.9 	the program. An applicant may appeal the commissioner's eligibility determination or 
22.10 	termination of benefits in writing to the commissioner at any time. The commissioner 
22.11 	must rule on any application or appeal within 30 days of receipt of all documentation that 
22.12 	the commissioner requires. The decision of the commissioner regarding an appeal is final. 
22.13 	However, an applicant whose appeal of an eligibility determination has been rejected by 
22.14 	the commissioner may submit an additional appeal of that determination in writing to the 
22.15 	commissioner at any time that the applicant is able to provide substantively significant 
22.16 	additional information regarding the applicant's eligibility for the program. An approval 
22.17 	of an applicant's eligibility by the commissioner following an appeal by the applicant is 
22.18 	not retroactively effective for more than one year or the semester of the person's original 
22.19 	application, whichever is later.
22.20 	(e) Upon receiving an application with insufficient documentation to determine 
22.21 	eligibility, the commissioner must notify the applicant within 30 days of receipt of the 
22.22 	application that the application is being suspended pending receipt by the commissioner of 
22.23 	sufficient documentation from the applicant to determine eligibility.

22.24 	Sec. 7. Minnesota Statutes 2012, section 197.791, subdivision 5, is amended to read:
22.25 		Subd. 5.Benefit amount. (a) On approval by the commissioner of eligibility for 
22.26 	the program, the applicant shall be awarded, on a funds-available basis, the educational 
22.27 	assistance under the program for use at any time according to program rules at any 
22.28 	eligible institution.
22.29 	(b) The amount of educational assistance in any semester or term for an eligible 
22.30 	person must be determined by subtracting from the eligible person's cost of attendance the 
22.31 	amount the person received or was eligible to receive in that semester or term from:
22.32 	(1) the federal Pell Grant;
22.33 	(2) the state grant program under section 136A.121; and
22.34 	(3) any federal military or veterans educational benefits including but not limited 
22.35 	to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 
23.1 	vocational rehabilitation benefits, and any other federal benefits associated with the 
23.2 	person's status as a veteran, except veterans disability payments from the United States 
23.3 	Veterans Administration and payments made under the Veterans Retraining Assistance 
23.4 	Program (VRAP).
23.5 	(c) The amount of educational assistance for any eligible person who is a full-time 
23.6 	student must not exceed the following:
23.7 	(1) $1,000 per semester or term of enrollment;
23.8 	(2) $3,000 per state fiscal year; and
23.9 	(3) $10,000 in a lifetime.
23.10 	For a part-time student, the amount of educational assistance must not exceed 
23.11 	$500 per semester or term of enrollment. For the purpose of this paragraph, a part-time 
23.12 	undergraduate student is a student taking fewer than 12 credits or the equivalent for a 
23.13 	semester or term of enrollment and a part-time graduate student is a student considered 
23.14 	part time by the eligible institution the graduate student is attending. The minimum award 
23.15 	for undergraduate and graduate students is $50 per term.

23.16 	Sec. 8. Minnesota Statutes 2012, section 364.03, subdivision 3, is amended to read:
23.17 		Subd. 3.Evidence of rehabilitation. (a) A person who has been convicted of a 
23.18 	crime or crimes which directly relate to the public employment sought or to the occupation 
23.19 	for which a license is sought shall not be disqualified from the employment or occupation 
23.20 	if the person can show competent evidence of sufficient rehabilitation and present fitness to 
23.21 	perform the duties of the public employment sought or the occupation for which the license 
23.22 	is sought. SufficientCompetent evidence of sufficient rehabilitation may be established by 
23.23 	the production of the person's most recent certified copy of a United States Department 
23.24 	of Defense form DD-214 showing the person's honorable discharge, or separation under 
23.25 	honorable conditions, from the United States armed forces for military service rendered 
23.26 	following conviction for any crime that would otherwise disqualify the person from the 
23.27 	public employment sought or the occupation for which the license is sought, or:
23.28 	(1) a copy of the local, state, or federal release order; and
23.29 	(2) evidence showing that at least one year has elapsed since release from any local, 
23.30 	state, or federal correctional institution without subsequent conviction of a crime; and 
23.31 	evidence showing compliance with all terms and conditions of probation or parole; or
23.32 	(3) a copy of the relevant Department of Corrections discharge order or other 
23.33 	documents showing completion of probation or parole supervision.
23.34 	(b) In addition to the documentary evidence presented, the licensing or hiring 
23.35 	authority shall consider any evidence presented by the applicant regarding:
24.1 	(1) the nature and seriousness of the crime or crimes for which convicted;
24.2 	(2) all circumstances relative to the crime or crimes, including mitigating 
24.3 	circumstances or social conditions surrounding the commission of the crime or crimes;
24.4 	(3) the age of the person at the time the crime or crimes were committed;
24.5 	(4) the length of time elapsed since the crime or crimes were committed; and
24.6 	(5) all other competent evidence of rehabilitation and present fitness presented, 
24.7 	including, but not limited to, letters of reference by persons who have been in contact with 
24.8 	the applicant since the applicant's release from any local, state, or federal correctional 
24.9 	institution.
24.10 	(c) The certified copy of a person's United States Department of Defense form 
24.11 	DD-214 showing the person's honorable discharge or separation under honorable 
24.12 	conditions from the United States armed forces ceases to qualify as competent evidence of 
24.13 	sufficient rehabilitation for purposes of this section upon the person's conviction for any 
24.14 	gross misdemeanor or felony committed by the person subsequent to the effective date of 
24.15 	that honorable discharge or separation from military service.

24.16 	Sec. 9. [471.3457] VETERAN-OWNED SMALL BUSINESS CONTRACTS.
24.17 		Subdivision 1.Definitions. For the purposes of this section:
24.18 	(1) "local government" means a town or home rule charter or statutory city; and
24.19 	(2) "governing body" means the town board of supervisors or city council.
24.20 		Subd. 2.Authority. The governing body of a local government may implement a 
24.21 	program within its jurisdiction to provide a bid preference in awarding contracts as defined 
24.22 	in section 471.345, and in awarding contracts for services, to designated veteran-owned 
24.23 	small businesses, as provided in section 375.771.

24.24 	Sec. 10. Minnesota Statutes 2012, section 626.8517, is amended to read:
24.25 	626.8517 ELIGIBILITY FOR RECIPROCITY EXAMINATION BASED ON 
24.26 	RELEVANT MILITARY EXPERIENCE.
24.27 	(a) For purposes of this section:
24.28 	(1) "active service" has the meaning given in section 190.05, subdivision 5; and
24.29 	(2) "relevant military experience" means:
24.30 	(i) five years' active service experience in a military law enforcement occupational 
24.31 	specialty;
24.32 	(ii) three years' active service experience in a military law enforcement occupational 
24.33 	specialty, and completion of a two-year or more degree from a regionally accredited 
24.34 	postsecondary education institution; or
25.1 	(iii) five years' cumulative experience as a full-time peace officer in another state 
25.2 	combined with active service experience in a military law enforcement occupational 
25.3 	specialty.
25.4 	(b) A person who has relevant military experience and who is eligible to take the 
25.5 	reciprocity examination if the person has relevant military experience and:
25.6 	(1)  has been honorably discharged from military active service as evidenced by a the 
25.7 	most recent form DD-214 is eligible to take the reciprocity examination.; or
25.8 	(2) is currently in active service as evidenced by: 
25.9 	(i) active duty orders providing service time in military police specialty;
25.10 	(ii) a United States Department of Defense Manpower Data Center status report 
25.11 	pursuant to Service Members Civil Relief Act, active duty status report; or
25.12 	(iii) Military Personnel Center assignment information.
25.13 	(c) A person who passed the examination under paragraph (b), clause (2), shall 
25.14 	not be eligible to be licensed as a peace officer until honorably discharged as evidenced 
25.15 	by the most recent form DD-214.

25.16 	Sec. 11.  REPEALER.
 25.17 	Minnesota Statutes 2012, section 197.608, subdivision 2a, is repealed.

25.18 	ARTICLE 4
25.19 	STATE GOVERNMENT OPERATIONS

25.20 	Section 1. Minnesota Statutes 2012, section 3.30, subdivision 2, is amended to read:
25.21 		Subd. 2.Members; duties. (a) The majority leader of the senate or a designee, the 
25.22 	chair of the senate Committee on Finance, and the chair of the senate Division of Finance 
25.23 	responsible for overseeing the items being considered by the commission, the speaker of 
25.24 	the house or a designee, the chair of the house of representatives Committee on Ways and 
25.25 	Means, and the chair of the appropriate finance committee, or division of the house of 
25.26 	representatives committee responsible for overseeing the items being considered by the 
25.27 	commissioner, constitute the Legislative Advisory Commission. The division chair of the 
25.28 	Finance Committee in the senate and the division chair of the appropriate finance committee 
25.29 	or division in the house of representatives shall rotate according to the items being 
25.30 	considered by the commission. If any of the members elect not to serve on the commission, 
25.31 	the house of which they are members, if in session, shall select some other member for 
25.32 	the vacancy. If the legislature is not in session, vacancies in the house of representatives 
25.33 	membership of the commission shall be filled by the last speaker of the house or, if the 
25.34 	speaker is not available, by the last chair of the house of representatives Rules Committee, 
26.1 	and by the last senate Committee on Committees or other appointing authority designated 
26.2 	by the senate rules in case of a senate vacancy. The commissioner of management and 
26.3 	budget shall be secretary of the commission and keep a permanent record and minutes of 
26.4 	its proceedings, which are public records. The commissioner of management and budget 
26.5 	shall transmit, under section 3.195, a report to the next legislature of all actions of the 
26.6 	commission. Members shall receive traveling and subsistence expenses incurred attending 
26.7 	meetings of the commission. The commission shall meet from time to time upon the call of 
26.8 	the governor or upon the call of the secretary at the request of two or more of its members. 
26.9 	A recommendation of the commission must be made at a meeting of the commission 
26.10 	unless a written recommendation is signed by all the members entitled to vote on the item.
26.11 	(b) The chair alternates between a member of the senate and a member of the house 
26.12 	of representatives in January of each odd-numbered year.

26.13 	Sec. 2. Minnesota Statutes 2012, section 3.303, is amended by adding a subdivision to 
26.14 	read:
26.15 		Subd. 11.Acceptance of grants and gifts. The commission may accept gifts 
26.16 	and grants for purposes related to the duties of the commission. Money received by the 
26.17 	commission from gifts and grants is appropriated to the commission for purposes specified 
26.18 	in the gift or grant.

26.19 	Sec. 3. Minnesota Statutes 2012, section 3.85, subdivision 8, is amended to read:
26.20 		Subd. 8.Expenses, reimbursement. The members of the commission and its 
26.21 	assistants staff shall be reimbursed for all expenses actually and necessarily incurred in 
26.22 	the performance of their duties. Reimbursement for expenses incurred shall be made 
26.23 	under the rules governing state employees in accordance with policies adopted by the 
26.24 	Legislative Coordinating Commission.

26.25 	Sec. 4. Minnesota Statutes 2012, section 3.85, subdivision 9, is amended to read:
26.26 		Subd. 9.Expenses and reports. Expenses of the commission shall be approved 
26.27 	by the chair or another member as the rules of the commission provide. The expenses 
26.28 	shall then be paid like other state expenses. A general summary or statement of expenses 
26.29 	incurred by the commission and paid shall be made to the legislature by November 15 of 
26.30 	each even-numbered year.

26.31 	Sec. 5. Minnesota Statutes 2012, section 3.971, subdivision 6, is amended to read:
27.1 		Subd. 6.Financial audits. The legislative auditor shall audit the financial 
27.2 	statements of the state of Minnesota required by section 16A.50 and, as resources permit, 
27.3 	shall audit Minnesota State Colleges and Universities, the University of Minnesota, state 
27.4 	agencies, departments, boards, commissions, offices, courts, and other state organizations 
27.5 	subject to audit by the legislative auditor, including, but not limited to, the State 
27.6 	Agricultural Society, Agricultural Utilization Research Institute, Enterprise Minnesota, 
27.7 	Inc., Minnesota Historical Society, Labor Interpretive Center, Minnesota Partnership 
27.8 	for Action Against Tobacco, Metropolitan Sports Facilities Commission ClearWay 
27.9 	Minnesota, Minnesota Sports Facilities Authority, Metropolitan Airports Commission, and 
27.10 	Metropolitan Mosquito Control District. Financial audits must be conducted according to 
27.11 	generally accepted government auditing standards. The legislative auditor shall see that 
27.12 	all provisions of law respecting the appropriate and economic use of public funds and 
27.13 	other public resources are complied with and may, as part of a financial audit or separately, 
27.14 	investigate allegations of noncompliance.

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

27.16 	Sec. 6. Minnesota Statutes 2012, section 3.971, is amended by adding a subdivision to 
27.17 	read:
27.18 		Subd. 6a.Data security audits. The legislative auditor shall audit, as resources 
27.19 	permit, information and data systems supported with public funds and operated by an 
27.20 	organization listed in subdivision 6. The audits shall include an assessment of controls 
27.21 	designed to protect government data, particularly government data classified as not 
27.22 	public by chapter 13, from unauthorized access and use. The audits shall also include an 
27.23 	assessment of organizations' compliance with other applicable legal requirements related 
27.24 	to the operation of information and data systems and proper classification and protection 
27.25 	of the data contained in the systems.

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

27.27 	Sec. 7. Minnesota Statutes 2012, section 3.971, is amended by adding a subdivision to 
27.28 	read:
27.29 		Subd. 9.Obligation to notify the legislative auditor. The chief executive, 
27.30 	financial, or information officers of an organization subject to audit under this section, 
27.31 	must promptly notify the legislative auditor when the officer obtains information 
27.32 	indicating that public money or other public resources may have been used for an unlawful 
27.33 	purpose, or when the officer obtains information indicating that government data classified 
28.1 	by chapter 13 as not public may have been accessed or used unlawfully. As necessary, 
28.2 	the legislative auditor shall coordinate an investigation of the allegation with appropriate 
28.3 	law enforcement officials.

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

28.5 	Sec. 8. [5.38] AUTHORITY TO ACCEPT FUNDS.
28.6 	The secretary of state may enter into agreements with a local governmental unit to 
28.7 	provide a technological service or project to enhance the state's election system. The 
28.8 	secretary of state and the local governmental unit shall agree to the amount of consideration 
28.9 	to be paid under the agreement. In addition, the secretary of state may accept federal funds 
28.10 	for election purposes. If the secretary of state accepts federal funds and the terms of the 
28.11 	grant do not require the state to maintain its effort, section 3.3005 does not apply. If the 
28.12 	secretary of state accepts federal funds and the terms of the grant do require the state to 
28.13 	maintain its effort, section 3.3005 applies. The funds accepted under this section must be 
28.14 	deposited in accounts in the special revenue fund and are appropriated to the secretary of 
28.15 	state for the uses authorized by this section. The secretary of state shall report by January 
28.16 	15 each year to the chair and ranking minority members of the finance committees of the 
28.17 	house of representatives and the senate with jurisdiction over the secretary of state the total 
28.18 	amounts received in the preceding calendar year, the sources of those funds, and the uses 
28.19 	to which those funds were or will be put. For purposes of this section, "local governmental 
28.20 	unit" means a county, home rule charter or statutory city, town, or school district.

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

28.22 	Sec. 9. [5B.12] AUTHORITY TO ACCEPT FUNDS.
28.23 	Notwithstanding sections 16A.013 to 16A.016, the secretary of state may accept 
28.24 	funds contributed by individuals and may apply for grants from charitable foundations, to 
28.25 	be used for the address confidentiality program established in section 5B.03. In addition, 
28.26 	the secretary of state may apply for grants from the federal government for purposes of the 
28.27 	address confidentiality program. If the secretary of state accepts federal funds and the terms 
28.28 	of the grant do not require the state to maintain its effort, section 3.3005 does not apply. If 
28.29 	the secretary of state accepts federal funds and the terms of the grant do require the state to 
28.30 	maintain its effort, section 3.3005 applies. The funds accepted under this section must be 
28.31 	deposited in accounts in the special revenue fund and are appropriated to the secretary of 
28.32 	state for use in the address confidentiality program. The secretary of state shall report by 
28.33 	January 15 each year to the chair and ranking minority members of the finance committees 
29.1 	of the house of representatives and the senate with jurisdiction over the secretary of state the 
29.2 	total amounts received in the preceding calendar year, the sources of those funds, and the 
29.3 	uses to which those funds were or will be put. Any contributions from program participants 
29.4 	must be aggregated, and the names of program participants must not be reported.

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

29.6 	Sec. 10. [6.475] CITY AND TOWN ACCOUNTING SYSTEM SOFTWARE.
29.7 	(a) The state auditor in consultation with the Minnesota Association of Townships, 
29.8 	the League of Minnesota Cities, and the Minnesota Association of Small Cities, may charge 
29.9 	a onetime user fee to cities, towns, and other government entities for the development, 
29.10 	maintenance, and distribution of the small city and town accounting system software.
29.11 	(b) A city and town accounting systems (CTAS) account is established in the special 
29.12 	revenue fund.
29.13 	(c) Amounts received under paragraph (a) shall be credited to the CTAS account in 
29.14 	the special revenue fund and are appropriated to the state auditor for all costs associated 
29.15 	with the development, maintenance, and distribution of the small city and town accounting 
29.16 	system software. If at any time the small city and town accounting system software ceases 
29.17 	to be offered by the state auditor, any amount remaining in the CTAS account shall be 
29.18 	equitably refunded to users in consultation with the Minnesota Association of Townships, 
29.19 	the League of Minnesota Cities, and the Minnesota Association of Small Cities, and the 
29.20 	account shall be closed.

29.21 	Sec. 11. Minnesota Statutes 2012, section 6.48, is amended to read:
29.22 	6.48 EXAMINATION OF COUNTIES; COST, FEES.
29.23 	All the powers and duties conferred and imposed upon the state auditor shall be 
29.24 	exercised and performed by the state auditor in respect to the offices, institutions, public 
29.25 	property, and improvements of several counties of the state. At least once in each year, 
29.26 	if funds and personnel permit, the state auditor may visit, without previous notice, each 
29.27 	county and make a thorough examination of all accounts and records relating to the 
29.28 	receipt and disbursement of the public funds and the custody of the public funds and 
29.29 	other property. If the audit is performed by a private certified public accountant, the state 
29.30 	auditor may require additional information from the private certified public accountant as 
29.31 	the state auditor deems in the public interest. The state auditor may accept the audit or 
29.32 	make additional examinations as the state auditor deems to be in the public interest. The 
29.33 	state auditor shall prescribe and install systems of accounts and financial reports that shall 
30.1 	be uniform, so far as practicable, for the same class of offices. A copy of the report of 
30.2 	such examination shall be filed and be subject to public inspection in the office of the state 
30.3 	auditor and another copy in the office of the auditor of the county thus examined. The state 
30.4 	auditor may accept the records and audit, or any part thereof, of the Department of Human 
30.5 	Services in lieu of examination of the county social welfare funds, if such audit has been 
30.6 	made within any period covered by the state auditor's audit of the other records of the 
30.7 	county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance 
30.8 	in any office of such county, such report shall be filed with the county attorney of the 
30.9 	county, and the county attorney shall institute such civil and criminal proceedings as the 
30.10 	law and the protection of the public interests shall require.
30.11 	The county receiving any examination shall pay to the state general fund, 
30.12 	notwithstanding the provisions of section 16A.125, state auditor enterprise fund the total 
30.13 	cost and expenses of such examinations, including the salaries paid to the examiners 
30.14 	while actually engaged in making such examination. The state auditor on deeming it 
30.15 	advisable may bill counties, having a population of 200,000 or over, monthly periodically
30.16 	 for services rendered and the officials responsible for approving and paying claims shall 
30.17 	cause said bill to be promptly paid. The general state auditor enterprise fund shall be 
30.18 	credited with all collections made for any such examinations.

30.19 	Sec. 12. Minnesota Statutes 2012, section 6.56, subdivision 2, is amended to read:
30.20 		Subd. 2.Billings by state auditor. Upon the examination of the books, records, 
30.21 	accounts, and affairs of any political subdivision, as provided by law, such political 
30.22 	subdivision shall be liable to the state for the total cost and expenses of such examination, 
30.23 	including the salaries paid to the examiners while actually engaged in making such 
30.24 	examination. The state auditor may bill such political subdivision monthly periodically
30.25 	 for service rendered and the officials responsible for approving and paying claims are 
30.26 	authorized to pay said bill promptly. Said payments shall be without prejudice to any 
30.27 	defense against said claims that may exist or be asserted. The general state auditor 
30.28 	enterprise fund shall be credited with all collections made for any such examinations, 
30.29 	including interest payments made pursuant to subdivision 3.

30.30 	Sec. 13. [6.581] STATE AUDITOR ENTERPRISE FUND.
30.31 		Subdivision 1.State auditor enterprise fund.  A state auditor enterprise fund 
30.32 	is established in the state treasury. All amounts received for the costs and expenses of 
30.33 	examinations performed under this chapter shall be credited to the fund. Amounts credited 
30.34 	to the fund are annually appropriated to the state auditor to pay the costs and expenses 
31.1 	related to the examinations performed, including, but not limited to, salaries, office 
31.2 	overhead, equipment, authorized contracts, and other expenses.
31.3 		Subd. 2.Contract with private parties; equipment acquisition. When full-time 
31.4 	personnel are not available, the state auditor may contract with a private entity for 
31.5 	accounting and other technical services. Notwithstanding any law to the contrary, the 
31.6 	acquisition of equipment may include duplicating equipment to be used in producing the 
31.7 	reports issued by the Office of the State Auditor.
31.8 		Subd. 3.Schedule of charges. The state auditor may adjust the schedule of charges 
31.9 	for the examinations performed so that the charges are sufficient to cover all costs of the 
31.10 	examinations performed and that the aggregate charges collected are sufficient to pay all 
31.11 	salaries and other expenses, including the charges for the use of the equipment used in 
31.12 	connection with the reimbursable examinations performed, and the cost of contracting for 
31.13 	accounting and other technical services. The schedule of charges shall be based on an 
31.14 	estimate of the cost of performing reimbursable examinations including, but not limited 
31.15 	to, salaries, office overhead, equipment, authorized contracts, and other expenses. The 
31.16 	state auditor may allocate a proportionate part of the total costs to an hourly or daily 
31.17 	charge for each person or class of persons engaged in the performance of an examination. 
31.18 	The schedule of charges shall reflect an equitable charge for the expenses incurred in the 
31.19 	performance of any given examination. The state auditor shall review and adjust the 
31.20 	schedule of charges for the examinations performed at least annually. All schedules of 
31.21 	charges must be approved by the commissioner of management and budget before the 
31.22 	charges are adopted to ensure that the amount collected is sufficient to pay all the costs 
31.23 	connected with the examinations performed during the fiscal year.
31.24 		Subd. 4.Reports to legislature. At least 30 days before implementing increased 
31.25 	charges for examinations, the state auditor must report the proposed increases to the chairs 
31.26 	and ranking minority members of the committees in the house of representatives and 
31.27 	the senate with jurisdiction over the budget of the state auditor. By January 15 of each 
31.28 	odd-numbered year, the state auditor must report to these chairs and ranking minority 
31.29 	members a summary of anticipated expenditures from the state auditor enterprise fund and 
31.30 	rates charged to support the fund for the biennium ending June 30 of that year, and an 
31.31 	estimate of expenditures from the fund and rates to be charged for the biennium beginning 
31.32 	July 1 of that year. The summary must separately report amounts for salaries, office 
31.33 	overhead, equipment, authorized contracts, and other expenses.

31.34 	Sec. 14. Minnesota Statutes 2012, section 15A.082, subdivision 1, is amended to read:
32.1 		Subdivision 1.Creation. A Compensation Council is created each even-numbered
32.2 	 odd-numbered year to assist the legislature in establishing the compensation of 
32.3 	constitutional officers, members of the legislature, justices of the Supreme Court, judges 
32.4 	of the Court of Appeals and district court, and the heads of state and metropolitan agencies 
32.5 	included in section 15A.0815.

32.6 	Sec. 15. Minnesota Statutes 2012, section 15A.082, subdivision 2, is amended to read:
32.7 		Subd. 2.Membership. The Compensation Council consists of 16 members: two 
32.8 	members of the house of representatives, appointed by the speaker of the house; two 
32.9 	members of the senate, appointed by the majority leader of the senate; one member of the 
32.10 	house of representatives, appointed by the minority leader of the house of representatives; 
32.11 	one member of the senate, appointed by the minority leader of the senate; two nonjudges 
32.12 	appointed by the chief justice of the Supreme Court; and one member from each 
32.13 	congressional district appointed by the governor, of whom no more than four may belong 
32.14 	to the same political party. Appointments must be made by October 1 after the first 
32.15 	Monday in January and before January 15. The compensation and removal of members 
32.16 	appointed by the governor or the chief justice shall be as provided in section 15.059, 
32.17 	subdivisions 3 and 4. The Legislative Coordinating Commission shall provide the council 
32.18 	with administrative and support services.

32.19 	Sec. 16. Minnesota Statutes 2012, section 15A.082, subdivision 3, is amended to read:
32.20 		Subd. 3.Submission of recommendations. (a) By May 1 March 15 in each 
32.21 	odd-numbered year, the Compensation Council shall submit to the speaker of the house 
32.22 	and the president of the senate salary recommendations for constitutional officers, 
32.23 	legislators, justices of the Supreme Court, and judges of the Court of Appeals and district 
32.24 	court. The recommended salary for each office must take effect on the first Monday in 
32.25 	January of the next odd-numbered year, with no more than one adjustment, to take effect 
32.26 	on January 1 of the year after that. The salary recommendations for legislators, judges, and 
32.27 	constitutional officers take effect if an appropriation of money to pay the recommended 
32.28 	salaries is enacted after the recommendations are submitted and before their effective date. 
32.29 	Recommendations may be expressly modified or rejected. The salary recommendations 
32.30 	for legislators are subject to additional terms that may be adopted according to section 
32.31 	3.099, subdivisions 1 and 3.
32.32 	(b) The council shall also submit to the speaker of the house and the president of 
32.33 	the senate recommendations for the salary ranges of the heads of state and metropolitan 
32.34 	agencies, to be effective retroactively from January 1 of that year if enacted into law. The 
33.1 	recommendations shall include the appropriate group in section 15A.0815 to which each 
33.2 	agency head should be assigned and the appropriate limitation on the maximum range of 
33.3 	the salaries of the agency heads in each group, expressed as a percentage of the salary of 
33.4 	the governor.

33.5 	Sec. 17. Minnesota Statutes 2012, section 16A.10, subdivision 1c, is amended to read:
33.6 		Subd. 1c.Performance measures for change items. For each change item in the 
33.7 	budget proposal requesting new or increased funding, the budget document must present 
33.8 	proposed performance measures that can be used to determine if the new or increased 
33.9 	funding is accomplishing its goals. To the extent possible, each budget change item 
33.10 	must identify relevant Minnesota Milestones and other statewide goals and indicators 
33.11 	related to the proposed initiative. The commissioner must report to the Subcommittee on 
33.12 	Government Accountability established under section 3.885, subdivision 10, regarding the 
33.13 	format to be used for the presentation and selection of Minnesota Milestones and other 
33.14 	statewide goals and indicators.

33.15 	Sec. 18. [16A.117] CONTINUING APPROPRIATIONS.
33.16 		Subdivision 1.Appropriations continue for one year. If a major appropriation bill 
33.17 	is not enacted before July 1 of an odd-numbered year, the existing appropriation amounts 
33.18 	pertaining to that bill for the fiscal year ending that June 30 are in effect again at the base 
33.19 	level through the fiscal year beginning July 1 of that odd-numbered year. The base level 
33.20 	is the amount appropriated for the fiscal year ending that June 30, except as otherwise 
33.21 	provided by subdivision 2 or by other law. The amounts needed to implement this section 
33.22 	are appropriated from each fund covered by this section. The house of representatives 
33.23 	and the senate may adopt joint resolutions designating the major appropriations bills and 
33.24 	specifying which appropriations pertain to each major appropriations bill for purposes 
33.25 	of this section.
33.26 		Subd. 2.Exceptions and adjustments. (a) An appropriation remaining in effect 
33.27 	under authority of subdivision 1 must be adjusted or discontinued as required by other 
33.28 	law and according to paragraphs (b) to (d).
33.29 	(b) An appropriation for the fiscal year ending June 30 of the odd-numbered year 
33.30 	does not remain in effect for the fiscal year starting on July 1 if the legislature specifically 
33.31 	designated the appropriation as a onetime appropriation, if the commissioner of 
33.32 	management and budget determines that the legislature clearly intended the appropriation 
33.33 	to be onetime, or if the program for which the appropriation was made expires on or 
33.34 	before July 1.
34.1 	(c) If an appropriation remains in effect under authority of subdivision 1, but the 
34.2 	program or activity that is the subject of the appropriation is scheduled to expire during a 
34.3 	fiscal year, the commissioner of management and budget must prorate the appropriation.
34.4 	(d) The commissioner of management and budget may make technical adjustments 
34.5 	to the amount of an appropriation to the extent the commissioner determines the technical 
34.6 	adjustments are needed to accurately reflect the amount that constitutes the annual 
34.7 	base level of the appropriation. The commissioner may make an adjustment under this 
34.8 	paragraph only if one or more of the following conditions is met:
34.9 	(1) the legislature previously appropriated money for a biennium, with the entire 
34.10 	appropriation being allocated to one year of the biennium, and the commissioner 
34.11 	determines an adjustment is necessary to accurately reflect the annual amount needed to 
34.12 	maintain program operations at the same level;
34.13 	(2) laws or policies under which revenues and expenditures are accounted for have 
34.14 	changed to eliminate or consolidate certain funds or accounts or to create new funds or 
34.15 	accounts, and adjustments in appropriations are necessary to implement these changes;
34.16 	(3) duties have been transferred between agency programs, or between agencies, and 
34.17 	adjustments in appropriations are necessary to reflect these transfers; or
34.18 	(4) a program, or changes to a program, were not fully operational in one fiscal year, 
34.19 	but will be fully operational in the following year, and an adjustment to the appropriation 
34.20 	is needed to accurately reflect the annual cost of the new or changed program.
34.21 	The commissioner of management and budget must give the chairs and lead 
34.22 	minority caucus members of the senate finance and house ways and means committees 
34.23 	written notice of any adjustments made under this subdivision.

34.24 	EFFECTIVE DATE. This section is effective July 1, 2013.

34.25 	Sec. 19. [16A.503] FEDERAL CONTINGENCY PLANNING.
34.26 	Each executive branch state agency that receives federal funds must notify the 
34.27 	budget committees of the legislature with jurisdiction over the agency by October 1 
34.28 	of each even-numbered year if the agency believes there is potential for a significant 
34.29 	reduction in the amount of federal funds the agency will receive in the biennium beginning 
34.30 	the following July 1. Each notice must include:
34.31 	(1) the reasons for the potential reduction in federal funds, and the likelihood the 
34.32 	reduction will occur;
34.33 	(2) the impact to the agency's operations and to other state and local government 
34.34 	services related to the potential reduction in federal funds; and
35.1 	(3) any steps the agency is taking to adjust to and minimize the impact of a potential 
35.2 	loss of federal funds.

35.3 	Sec. 20. Minnesota Statutes 2012, section 16A.82, is amended to read:
35.4 	16A.82 TECHNOLOGY LEASE-PURCHASE APPROPRIATION.
35.5 	The following amounts are appropriated from the general fund to the commissioner 
35.6 	to make payments under a lease-purchase agreement as defined in section 16A.81 for 
35.7 	replacement of the state's accounting and procurement systems, provided that the state 
35.8 	is not obligated to continue such appropriation of funds or to make lease payments 
35.9 	in any future fiscal year.

35.10		Fiscal year 2010
	$2,828,038
	
35.11		Fiscal year 2011
	$3,063,950
	
35.12		Fiscal year 2012
	$8,967,850
	
35.13		Fiscal year 2013
	$8,968,950
	
35.14		Fiscal year 2014
	$8,970,850
	
35.15		Fiscal year 2015
	$8,971,150
	
35.16		Fiscal year 2016
	$8,966,450
	
35.17		Fiscal year 2017
	$8,967,500
	
35.18		Fiscal year 2018
	$8,970,750
	
35.19		Fiscal year 2019
	$8,968,500
	
35.20 	Of these appropriations, up to $2,000 per year may be used to pay the annual trustee 
35.21 	fees for the lease-purchase agreements authorized in this section and section 270C.145. 
35.22 	Any unexpended portions of this appropriation cancel to the general fund at the close of 
35.23 	each biennium. This section expires June 30, 2019.

35.24 	Sec. 21. [16E.0466] STATE AGENCY TECHNOLOGY PROJECTS.
35.25 	Every state agency with an information or telecommunications project must consult 
35.26 	with the Office of Enterprise Technology to determine what the IT cost of the project 
35.27 	is, and transfer the IT cost portion to the Office of Enterprise Technology, unless the 
35.28 	commissioner of the Office of Enterprise Technology determines that a transfer is 
35.29 	not required. A transfer is not required under this section to the extent the transfer is 
35.30 	prohibited by federal law or would cause a loss of federal funds. Agencies specified in 
35.31 	section 16E.016, paragraph (d), are exempt from the requirements of this section.

35.32 	Sec. 22. Minnesota Statutes 2012, section 16E.07, subdivision 6, is amended to read:
35.33 		Subd. 6.Fees. The office shall establish fees for technical and transaction services 
35.34 	for government units through North Star. Fees must be credited to the North Star account. 
36.1 	Except for the convenience fee under subdivision 12, the office may not charge a fee for 
36.2 	viewing or inspecting data made available through North Star or linked facilities, unless 
36.3 	specifically authorized by law.

36.4 	EFFECTIVE DATE. This section is effective July 1, 2013.

36.5 	Sec. 23. Minnesota Statutes 2012, section 16E.07, is amended by adding a subdivision 
36.6 	to read:
36.7 		Subd. 12.Private entity services; fee authority; council established. (a) The 
36.8 	office may enter into a contract with a private entity to manage, maintain, support, and 
36.9 	expand North Star and online government information services to citizens and businesses.
36.10 	(b) A contract established under paragraph (a) may provide for compensation of the 
36.11 	private entity through a fee established under paragraph (c).
36.12 	(c) Upon authorization by the E-Government Advisory Council as created in 
36.13 	paragraph (e), a private entity that enters into a contract under paragraph (a) or the 
36.14 	office may establish a convenience fee for users of North Star and online government 
36.15 	information services up to a total of $2 per transaction. A fee established under this 
36.16 	paragraph is in addition to any fees or surcharges authorized under other law.
36.17 	(d) Receipts from the convenience fee shall be deposited in the North Star account 
36.18 	established in subdivision 7. Notwithstanding section 16A.1285, subdivision 2, receipts 
36.19 	credited to the account are appropriated to the office for payment to the contracted private 
36.20 	entity under paragraph (a). In lieu of depositing the receipts in the North Star account, the 
36.21 	office can directly transfer the receipts to the private entity or allow the private entity to 
36.22 	retain the receipts pursuant to a contract established under this subdivision.
36.23 	(e) The E-Government Advisory Council is established for the purpose of improving 
36.24 	online government information services to citizens and businesses. The council shall 
36.25 	recommend to the office the priority of North Star projects and online government 
36.26 	information services to be developed and supported by convenience fee receipts. The 
36.27 	council shall provide oversight on the convenience fee and its receipts in the North Star 
36.28 	account. The council shall by majority quorum vote approve or disapprove establishing 
36.29 	the convenience fee on particular types of transactions, the fee amount, and any changes in 
36.30 	the fee amount. If the convenience fee receipts are retained by or transferred to the private 
36.31 	entity in lieu of deposit in the North Star account, the council may audit the private entity's 
36.32 	convenience fee receipts, expenses paid by the receipts, and associated financial statements.
36.33 	(1) The council shall consist of the state chief information officer or the chief 
36.34 	information officer's designee, one member appointed by the speaker of the house, one 
36.35 	member appointed by the senate majority leader, and six members appointed by the 
37.1 	governor representing state executive branch agencies that are actively involved with 
37.2 	private businesses, the private business community, or the public.
37.3 	(2) Membership terms, removal of member, and filling of vacancies are as provided 
37.4 	in section 15.059. Members do not receive compensation or reimbursement for expenses.
37.5 	(3) The council shall select a chair from its members. The office shall provide 
37.6 	administrative support to the council.
37.7 	(f) The office shall report to the chairs and ranking minority members of the house 
37.8 	of representatives and senate committees with jurisdiction over state government finance 
37.9 	by January 15 of each odd-numbered year regarding the convenience fee receipts and 
37.10 	the status of North Star projects and online government information services developed 
37.11 	and supported by convenience fee receipts.

37.12 	Sec. 24. Minnesota Statutes 2012, section 32C.04, is amended to read:
37.13 	32C.04 ACCOUNTS; AUDITS.
37.14 	The authority may establish funds and accounts that it determines to be reasonable and 
37.15 	necessary to conduct the business of the authority. The board shall provide for and pay the 
37.16 	cost of an independent annual audit of its official books and records be subject to audit by 
37.17 	the state legislative auditor. A copy of this an audit must be filed with the secretary of state.

37.18 	Sec. 25. Minnesota Statutes 2012, section 129D.14, subdivision 2, is amended to read:
37.19 		Subd. 2.Definitions. As used in this section, the terms defined in this subdivision 
37.20 	have the meanings given them.
37.21 	(a) "Corporation for Public Broadcasting" or "CPB" means the nonprofit organization 
37.22 	established pursuant to United States Code, title 47, section 396.
37.23 	(b) "Federal Communications Commission" or "FCC" means the federal agency 
37.24 	established pursuant to United States Code, title 47, section 151.
37.25 	(c) "Licensee" means the individual or business an entity to whom which the Federal 
37.26 	Communications Commission has issued the a license to operate a noncommercial radio 
37.27 	station as defined in Code of Federal Regulations, title 47, subpart D, section 73.503.
37.28 	(d) "Noncommercial radio station" means a station operated by a licensee of the FCC 
37.29 	as a noncommercial educational radio station under a license or program test authority from 
37.30 	the Federal Communications Commission as a noncommercial educational radio station as 
37.31 	defined in Code of Federal Regulations, title 47, subpart D, section 73.503, licensed to a 
37.32 	community within the state and serving a segment of the population of the state.
37.33 	(e) "Operating income" may include:
37.34 	(1) individual and other community contributions;
38.1 	(2) all grants received from the Corporation for Public Broadcasting;
38.2 	(3) grants received from foundations, corporations, or federal, state, or local agencies 
38.3 	or other sources for the purpose of programming or general operating support;
38.4 	(4) interest income;
38.5 	(5) earned income;
38.6 	(6) employee salaries paid through the federal Comprehensive Employment and 
38.7 	Training Act, or other similar public employment programs, provided that only salary 
38.8 	expended for employee duties directly relating to radio station operations shall be counted;
38.9 	(7) employee salaries paid through supporting educational institutions, provided that 
38.10 	only salary expended for employee duties directly relating to radio station operations 
38.11 	shall be counted;
38.12 	(8) direct operating costs provided by supporting educational institutions; and
38.13 	(9) no more than $15,000 in volunteer time calculated at the federal minimum wage.
38.14 	The following are specifically excluded in determining a station's operating income:
38.15 	(1) dollar representations in in-kind assistance from any source except as stipulated 
38.16 	in clauses (8) and (9) above;
38.17 	(2) grants or contributions from any source for the purpose of purchasing capital 
38.18 	improvements or equipment; and
38.19 	(3) noncommercial radio station grants received in the previous fiscal year pursuant 
38.20 	to this section.
38.21 	(f) "Local" means the area designated by the FCC's 60 dBu contour map.

38.22 	Sec. 26. Minnesota Statutes 2012, section 129D.14, subdivision 3, is amended to read:
38.23 		Subd. 3.Eligibility. (a) To qualify for a grant under this section, the licensee shall
38.24 	 must:
38.25 	(a) (1) hold a valid noncommercial educational radio station license or program test 
38.26 	authority from the Federal Communications Commission; FCC that is a Class "A" or "C" 
38.27 	FM, as defined in Code of Federal Regulations, title 47, subpart B, sections 73.210 and 
38.28 	73.211 or Class "C" or "D" AM, as defined in Code of Federal Regulations, title 47, 
38.29 	subpart A, section 73.21. Stations with a Class "L1" and "LP100" are not eligible for this 
38.30 	funding. The station must be licensed to a community in the state of Minnesota and must 
38.31 	be operated as a noncommercial educational station.
38.32 	(b) (2) have facilities adequate to provide local program production and origination;
38.33 	(c) (3) employ a minimum of two full-time professional radio staff persons or the 
38.34 	equivalent in part-time staff and agree to employ a minimum of two full-time professional 
38.35 	radio staff persons or the equivalent in part-time staff throughout the fiscal year of the grant;
39.1 	(d) (4) maintain a minimum daily broadcasting schedule of (1) the maximum 
39.2 	allowed by its Federal Communications Commission license or (2) 12 hours a day during 
39.3 	the first year of eligibility for state assistance, 15 hours a day during the second year of 
39.4 	eligibility and 18 hours a day during the third and following years of eligibility;
39.5 	(e) (5) broadcast 365 days a year or the maximum number of days allowed by its 
39.6 	Federal Communications Commission license with an exception for power outages and 
39.7 	natural disasters;
39.8 	(f) (6) have a daily broadcast schedule devoted primarily to programming that serves 
39.9 	ascertained community needs of an educational, informational or cultural nature within 
39.10 	its primary signal area; however, a program schedule of a main channel carrier designed 
39.11 	to further the principles of one or more particular religious philosophies or including 25 
39.12 	percent or more religious programming on a broadcast day does not meet this criterion, 
39.13 	nor does a program schedule of a main channel carrier designed primarily for in-school or 
39.14 	professional in-service audiences;
39.15 	(g) (7) originate significant, locally produced programming designed to serve its 
39.16 	community of license;
39.17 	(h) (8) have a total annual operating income and budget of at least $50,000;
39.18 	(i) (9) have either a board of directors representing the community or a community 
39.19 	advisory board that conducts advisory board meetings that are open to the public;
39.20 	(j) (10) have a board of directors that: (1) (i) holds the portion of any meeting 
39.21 	relating to the management or operation of the radio station open to the public and (2)
39.22 	 (ii) permits any person to attend any meeting of the board without requiring a person, 
39.23 	as a condition to attendance at the meeting, to register the person's name or to provide 
39.24 	any other information; and
39.25 	(k) (11) have met the criteria in clauses (a) (1) to (j) (10) for six months before it is 
39.26 	eligible for state assistance under this section.
39.27 	(b) The commissioner shall accept the judgment of Corporation for Public 
39.28 	Broadcasting accepted audit when it is available on a station's eligibility for assistance 
39.29 	under the criteria of this subdivision. If the station is not qualified for assistance or is 
39.30 	qualified for but not receiving funding from the Corporation for Public Broadcasting, an 
39.31 	independent audit is required to verify eligibility under paragraph (a), clause (8). If neither 
39.32 	is available, the commissioner may accept a written declaration of eligibility signed by 
39.33 	an independent auditor, a certified public accountant, or the chief executive officer of the 
39.34 	station's parent organization if it is an institution of education.

40.1 	Sec. 27. Minnesota Statutes 2012, section 129D.155, is amended to read:
40.2 	129D.155 REPAYMENT OF FUNDS.
40.3 	State funds distributed to public television or noncommercial radio stations and used 
40.4 	to purchase equipment assets must be repaid to the state, without interest, if the assets 
40.5 	purchased with these funds are sold within five years or otherwise converted to a person 
40.6 	other than a nonprofit or municipal corporation. The amount due to the state shall be the 
40.7 	net amount realized from the sale of the assets, but shall not exceed the amount of state 
40.8 	funds advanced for the purchase of the asset. The commissioner of administration may 
40.9 	approve the use of funds derived from the sale of such assets for the purchase of new 
40.10 	equipment for similar purposes.

40.11 	Sec. 28. Minnesota Statutes 2012, section 161.1419, subdivision 3, is amended to read:
40.12 		Subd. 3.Investigatory powers; Chair, vice-chair, and secretary. The commission 
40.13 	may hold meetings and hearings at such time and places as it may designate to accomplish 
40.14 	the purposes set forth in this section and may subpoena witnesses and records. It shall select 
40.15 	a chair, a vice-chair, and such other officers from its membership as it deems necessary. 
40.16 	The commission shall appoint a secretary who shall also serve as a commission member.

40.17 	Sec. 29. Minnesota Statutes 2012, section 469.3201, is amended to read:
40.18 	469.3201 STATE LEGISLATIVE AUDITOR; AUDITS OF JOB 
40.19 	OPPORTUNITY BUILDING ZONES AND BUSINESS SUBSIDY AGREEMENTS.
40.20 	As resources allow, the Office of the State Auditor legislative auditor must annually
40.21 	 audit the creation and operation of all job opportunity building zones and business 
40.22 	subsidy agreements entered into under Minnesota Statutes, sections 469.310 to 469.320. 
40.23 	To the extent necessary to perform this audit, the state auditor may request from the 
40.24 	commissioner of revenue tax return information of taxpayers who are eligible to receive 
40.25 	tax benefits authorized under section 469.315. To the extent necessary to perform this 
40.26 	audit, the state auditor may request from the commissioner of employment and economic 
40.27 	development wage detail report information required under section 268.044 of taxpayers 
40.28 	eligible to receive tax benefits authorized under section 469.315 All public officials and 
40.29 	parties to the agreements shall provide the legislative auditor with all documents and 
40.30 	data the legislative auditor deems necessary and in all other respects comply with the 
40.31 	requirements of section 3.978, subdivision 2.

41.1 	Sec. 30. Minnesota Statutes 2012, section 471.699, is amended to read:
41.2 	471.699 ENFORCEMENT OF REPORTING REQUIREMENTS.
41.3 	Failure of a city to timely file a statement or report under section 471.697 or 471.698
41.4 	shall, in addition to any other penalties provided by law, authorize the state auditor to send 
41.5 	full-time personnel to the city or to contract with private persons, firms, or corporations 
41.6 	pursuant to section 6.58 6.581, in order to complete and file the financial statement or 
41.7 	report. The expenses related to the completion and filing of the financial statement or 
41.8 	report shall be charged to the city. Upon failure by the city to pay the charge within 30 
41.9 	days of billing, the state auditor shall so certify to the commissioner of management and 
41.10 	budget who shall forward the amount certified to the general fund and deduct the amount 
41.11 	from any state funds due to the city under any shared taxes or aids. The state auditor's 
41.12 	annual report on cities shall include a listing of all cities failing to file a statement or report.

41.13 	Sec. 31. LEGISLATIVE ADVISORY COMMISSION CHAIR; 2013.
 41.14 	Under Minnesota Statutes, section 3.30, subdivision 2, the chair of the Legislative 
41.15 	Advisory Commission must be a member of the senate in 2013.

41.16 	Sec. 32. AUDIT OF FINANCIAL STATEMENTS.
 41.17 	The legislative auditor shall examine alternatives for achieving an annual 
41.18 	independent audit of the financial statements of the state of Minnesota required by 
41.19 	Minnesota Statutes, section 16A.50, and make recommendations to the Legislative Audit 
41.20 	Commission and appropriate legislative committees by October 1, 2013.

41.21 	Sec. 33. REPEALER.
 41.22 	Minnesota Statutes 2012, sections 3.304, subdivisions 1 and 5; 3.885, subdivision 
41.23 	10; and 6.58, are repealed.

41.24 	ARTICLE 5
41.25 	REVENUE PROVISIONS

41.26 	Section 1. Minnesota Statutes 2012, section 65B.84, subdivision 1, is amended to read:
41.27 		Subdivision 1.Program described; commissioner's duties; appropriation. (a) 
41.28 	The commissioner of commerce shall:
41.29 	(1) develop and sponsor the implementation of statewide plans, programs, and 
41.30 	strategies to combat automobile theft, improve the administration of the automobile theft 
42.1 	laws, and provide a forum for identification of critical problems for those persons dealing 
42.2 	with automobile theft;
42.3 	(2) coordinate the development, adoption, and implementation of plans, programs, 
42.4 	and strategies relating to interagency and intergovernmental cooperation with respect 
42.5 	to automobile theft enforcement;
42.6 	(3) annually audit the plans and programs that have been funded in whole or in part 
42.7 	to evaluate the effectiveness of the plans and programs and withdraw funding should the 
42.8 	commissioner determine that a plan or program is ineffective or is no longer in need 
42.9 	of further financial support from the fund;
42.10 	(4) develop a plan of operation including:
42.11 	(i) an assessment of the scope of the problem of automobile theft, including areas 
42.12 	of the state where the problem is greatest;
42.13 	(ii) an analysis of various methods of combating the problem of automobile theft;
42.14 	(iii) a plan for providing financial support to combat automobile theft;
42.15 	(iv) a plan for eliminating car hijacking; and
42.16 	(v) an estimate of the funds required to implement the plan; and
42.17 	(5) distribute money, in consultation with the commissioner of public safety, 
42.18 	pursuant to subdivision 3 from the automobile theft prevention special revenue account 
42.19 	for automobile theft prevention activities, including:
42.20 	(i) paying the administrative costs of the program;
42.21 	(ii) providing financial support to the State Patrol and local law enforcement 
42.22 	agencies for automobile theft enforcement teams;
42.23 	(iii) providing financial support to state or local law enforcement agencies for 
42.24 	programs designed to reduce the incidence of automobile theft and for improved 
42.25 	equipment and techniques for responding to automobile thefts;
42.26 	(iv) providing financial support to local prosecutors for programs designed to reduce 
42.27 	the incidence of automobile theft;
42.28 	(v) providing financial support to judicial agencies for programs designed to reduce 
42.29 	the incidence of automobile theft;
42.30 	(vi) providing financial support for neighborhood or community organizations or 
42.31 	business organizations for programs designed to reduce the incidence of automobile 
42.32 	theft and to educate people about the common methods of automobile theft, the models 
42.33 	of automobiles most likely to be stolen, and the times and places automobile theft is 
42.34 	most likely to occur; and
43.1 	(vii) providing financial support for automobile theft educational and training 
43.2 	programs for state and local law enforcement officials, driver and vehicle services exam 
43.3 	and inspections staff, and members of the judiciary.
43.4 	(b) The commissioner may not spend in any fiscal year more than ten percent of the 
43.5 	money in the fund for the program's administrative and operating costs. The commissioner 
43.6 	is annually appropriated and must distribute the amount of the proceeds credited to 
43.7 	the automobile theft prevention special revenue account each year, less the transfer 
43.8 	of $1,300,000 each year to the general fund described in section 168A.40, subdivision 
43.9 	4 297I.11, subdivision 2.

43.10 	EFFECTIVE DATE. This section is effective for premiums collected after June 
43.11 	30, 2013.

43.12 	Sec. 2. Minnesota Statutes 2012, section 270C.69, subdivision 1, is amended to read:
43.13 		Subdivision 1.Notice and procedures. (a) The commissioner may, within five years 
43.14 	after the date of assessment of the tax, or if a lien has been filed under section 270C.63, 
43.15 	within the statutory period for enforcement of the lien, give notice to any employer 
43.16 	deriving income which has a taxable situs in this state regardless of whether the income is 
43.17 	exempt from taxation, that an employee of that employer is delinquent in a certain amount 
43.18 	with respect to any taxes, including penalties, interest, and costs. The commissioner can 
43.19 	proceed under this section only if the tax is uncontested or if the time for appeal of the tax 
43.20 	has expired. The commissioner shall not proceed under this section until the expiration of 
43.21 	30 days after mailing to the taxpayer, at the taxpayer's last known address, a written notice 
43.22 	of (1) the amount of taxes, interest, and penalties due from the taxpayer and demand for 
43.23 	their payment, and (2) the commissioner's intention to require additional withholding by 
43.24 	the taxpayer's employer pursuant to this section. The effect of the notice shall expire one 
43.25 	year after it has been mailed to the taxpayer provided that the notice may be renewed by 
43.26 	mailing a new notice which is in accordance with this section. The renewed notice shall 
43.27 	have the effect of reinstating the priority of the original claim. The notice to the taxpayer 
43.28 	shall be in substantially the same form as that provided in section 571.72. The notice 
43.29 	shall further inform the taxpayer of the wage exemptions contained in section 550.37, 
43.30 	subdivision 14. If no statement of exemption is received by the commissioner within 30 
43.31 	days from the mailing of the notice, the commissioner may proceed under this section. 
43.32 	The notice to the taxpayer's employer may be served by mail or by delivery by an agent of 
43.33 	the department and shall be in substantially the same form as provided in section 571.75. 
43.34 	Upon receipt of notice, the employer shall withhold from compensation due or to become 
43.35 	due to the employee, the total amount shown by the notice, subject to the provisions of 
44.1 	section 571.922. The employer shall continue to withhold each pay period until the notice 
44.2 	is released by the commissioner under section 270C.7109. Upon receipt of notice by the 
44.3 	employer, the claim of the state of Minnesota shall have priority over any subsequent 
44.4 	garnishments or wage assignments. The commissioner may arrange between the employer 
44.5 	and the employee for withholding a portion of the total amount due the employee each pay 
44.6 	period, until the total amount shown by the notice plus accrued interest has been withheld.
44.7 	(b) The "compensation due" any employee is defined in accordance with the 
44.8 	provisions of section 571.921. The maximum withholding allowed under this section for 
44.9 	any one pay period shall be decreased by any amounts payable pursuant to a garnishment 
44.10 	action with respect to which the employer was served prior to being served with the notice 
44.11 	of delinquency and any amounts covered by any irrevocable and previously effective 
44.12 	assignment of wages; the employer shall give notice to the commissioner of the amounts 
44.13 	and the facts relating to such assignments within ten days after the service of the notice of 
44.14 	delinquency on the form provided by the commissioner as noted in this section.
44.15 	(c) Within ten days after the expiration of such pay period, the employer shall remit 
44.16 	to the commissioner, on a form and in the manner prescribed by the commissioner, the 
44.17 	amount withheld during each pay period under this section. The employer must file all 
44.18 	wage levy disclosure forms and remit all wage levy payments by electronic means.

44.19 	EFFECTIVE DATE. This section is effective for wage levy disclosures or wage 
44.20 	levy payments filed or made after December 31, 2013.

44.21 	Sec. 3. Minnesota Statutes 2012, section 289A.20, subdivision 2, is amended to read:
44.22 		Subd. 2.Withholding from wages, entertainer withholding, withholding 
44.23 	from payments to out-of-state contractors, and withholding by partnerships, small 
44.24 	business corporations, trusts. (a) A tax required to be deducted and withheld during the 
44.25 	quarterly period must be paid on or before the last day of the month following the close of 
44.26 	the quarterly period, unless an earlier time for payment is provided. A tax required to be 
44.27 	deducted and withheld from compensation of an entertainer and from a payment to an 
44.28 	out-of-state contractor must be paid on or before the date the return for such tax must be 
44.29 	filed under section 289A.18, subdivision 2. Taxes required to be deducted and withheld 
44.30 	by partnerships, S corporations, and trusts must be paid on a quarterly basis as estimated 
44.31 	taxes under section 289A.25 for partnerships and trusts and under section 289A.26 for S 
44.32 	corporations.
44.33 	(b) An employer who, during the previous quarter, withheld more than $1,500 of 
44.34 	tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax 
44.35 	withheld under those sections with the commissioner within the time allowed to deposit 
45.1 	the employer's federal withheld employment taxes under Code of Federal Regulations, 
45.2 	title 26, section 31.6302-1, as amended through December 31, 2001, without regard to the 
45.3 	safe harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). 
45.4 	Taxpayers must submit a copy of their federal notice of deposit status to the commissioner 
45.5 	upon request by the commissioner.
45.6 	(c) The commissioner may prescribe by rule other return periods or deposit 
45.7 	requirements. In prescribing the reporting period, the commissioner may classify payors 
45.8 	according to the amount of their tax liability and may adopt an appropriate reporting 
45.9 	period for the class that the commissioner judges to be consistent with efficient tax 
45.10 	collection. In no event will the duration of the reporting period be more than one year.
45.11 	(d) If less than the correct amount of tax is paid to the commissioner, proper 
45.12 	adjustments with respect to both the tax and the amount to be deducted must be made, 
45.13 	without interest, in the manner and at the times the commissioner prescribes. If the 
45.14 	underpayment cannot be adjusted, the amount of the underpayment will be assessed and 
45.15 	collected in the manner and at the times the commissioner prescribes.
45.16 	(e) If the aggregate amount of the tax withheld is:
45.17 	(1) $20,000 or more in the fiscal year ending June 30, 2005; or
45.18 	(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years 
45.19 	thereafter,
45.20 	the employer must remit each required deposit for wages paid in the all subsequent 
45.21 	calendar year years by electronic means.
45.22 	(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph 
45.23 	(a), clause (2), who remits withholding deposits must remit all deposits by electronic 
45.24 	means as provided in paragraph (e), regardless of the aggregate amount of tax withheld 
45.25 	during a fiscal year for all of the employers.

45.26 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
45.27 	2013, and all fiscal years thereafter.

45.28 	Sec. 4. Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read:
45.29 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and 
45.30 	payable to the commissioner monthly on or before the 20th day of the month following 
45.31 	the month in which the taxable event occurred, or following another reporting period 
45.32 	as the commissioner prescribes or as allowed under section 289A.18, subdivision 4, 
45.33 	paragraph (f) or (g), except that:
46.1 	(1) use taxes due on an annual use tax return as provided under section 289A.11, 
46.2 	subdivision 1, are payable by April 15 following the close of the calendar year; and
46.3 	(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 
46.4 	or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes 
46.5 	imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the 
46.6 	commissioner monthly in the following manner:
46.7 	(i) On or before the 14th day of the month following the month in which the taxable 
46.8 	event occurred, the vendor must remit to the commissioner 90 percent of the estimated 
46.9 	liability for the month in which the taxable event occurred.
46.10 	(ii) On or before the 20th day of the month in which the taxable event occurs, the 
46.11 	vendor must remit to the commissioner a prepayment for the month in which the taxable 
46.12 	event occurs equal to 67 percent of the liability for the previous month.
46.13 	(iii) On or before the 20th day of the month following the month in which the taxable 
46.14 	event occurred, the vendor must pay any additional amount of tax not previously remitted 
46.15 	under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than 
46.16 	the vendor's liability for the month in which the taxable event occurred, the vendor may 
46.17 	take a credit against the next month's liability in a manner prescribed by the commissioner.
46.18 	(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to 
46.19 	continue to make payments in the same manner, as long as the vendor continues having a 
46.20 	liability of $120,000 or more during the most recent fiscal year ending June 30.
46.21 	(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required 
46.22 	payment in the first month that the vendor is required to make a payment under either item 
46.23 	(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make 
46.24 	subsequent monthly payments in the manner provided in item (ii).
46.25 	(vi) For vendors making an accelerated payment under item (ii), for the first month 
46.26 	that the vendor is required to make the accelerated payment, on the 20th of that month, the 
46.27 	vendor will pay 100 percent of the liability for the previous month and a prepayment for 
46.28 	the first month equal to 67 percent of the liability for the previous month.
46.29 	(b) Notwithstanding paragraph (a), a vendor having a liability of $120,000 or more 
46.30 	during a fiscal year ending June 30 must remit the June liability for the next year in the 
46.31 	following manner:
46.32 	(1) Two business days before June 30 of the year, the vendor must remit 90 percent 
46.33 	of the estimated June liability to the commissioner.
46.34 	(2) On or before August 20 of the year, the vendor must pay any additional amount 
46.35 	of tax not remitted in June.
46.36 	(c) A vendor having a liability of:
47.1 	(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, 
47.2 	2009 2013, and fiscal years thereafter, must remit by electronic means all liabilities on 
47.3 	returns due for periods beginning in the all subsequent calendar year years on or before 
47.4 	the 20th day of the month following the month in which the taxable event occurred, or 
47.5 	on or before the 20th day of the month following the month in which the sale is reported 
47.6 	under section 289A.18, subdivision 4; or
47.7 	(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years 
47.8 	thereafter, must remit by electronic means all liabilities in the manner provided in 
47.9 	paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar 
47.10 	year, except for 90 percent of the estimated June liability, which is due two business days 
47.11 	before June 30. The remaining amount of the June liability is due on August 20.
47.12 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 
47.13 	religious beliefs from paying electronically shall be allowed to remit the payment by mail. 
47.14 	The filer must notify the commissioner of revenue of the intent to pay by mail before 
47.15 	doing so on a form prescribed by the commissioner. No extra fee may be charged to a 
47.16 	person making payment by mail under this paragraph. The payment must be postmarked 
47.17 	at least two business days before the due date for making the payment in order to be 
47.18 	considered paid on a timely basis.
47.19 	(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed 
47.20 	under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the 
47.21 	chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and 
47.22 	paid with the chapter 297A taxes, then the payment of all the liabilities on the return must 
47.23 	be accelerated as provided in this subdivision.
47.24 	(f) At the start of the first calendar quarter at least 90 days after the cash flow account 
47.25 	established in section 16A.152, subdivision 1, and the budget reserve account established in 
47.26 	section 16A.152, subdivision 1a, reach the amounts listed in section 16A.152, subdivision 
47.27 	2, paragraph (a), the remittance of the accelerated payments required under paragraph (a), 
47.28 	clause (2), must be suspended. The commissioner of management and budget shall notify 
47.29 	the commissioner of revenue when the accounts have reached the required amounts. 
47.30 	Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of 
47.31 	$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the 
47.32 	taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day 
47.33 	of the month following the month in which the taxable event occurred. Payments of tax 
47.34 	liabilities for taxable events occurring in June under paragraph (b) are not changed.

47.35 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
47.36 	2013, and all fiscal years thereafter.

48.1 	Sec. 5. Minnesota Statutes 2012, section 289A.26, subdivision 2a, is amended to read:
48.2 		Subd. 2a.Electronic payments. If the aggregate amount of estimated tax payments 
48.3 	made is:
48.4 	(1) $20,000 or more in the fiscal year ending June 30, 2005; or
48.5 	(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years 
48.6 	thereafter,
48.7 	all estimated tax payments in the all subsequent calendar year years must be paid by 
48.8 	electronic means.

48.9 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
48.10 	2013, and all fiscal years thereafter.

48.11 	Sec. 6. Minnesota Statutes 2012, section 295.55, subdivision 4, is amended to read:
48.12 		Subd. 4.Electronic payments. A taxpayer with an aggregate tax liability of:
48.13 	(1) $20,000 or more in the fiscal year ending June 30, 2005; or
48.14 	(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years 
48.15 	thereafter,
48.16 	must remit all liabilities by electronic means in the all subsequent calendar year years.

48.17 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
48.18 	2013, and all fiscal years thereafter.

48.19 	Sec. 7. Minnesota Statutes 2012, section 297F.09, subdivision 7, is amended to read:
48.20 		Subd. 7.Electronic payment. A cigarette or tobacco products distributor having a 
48.21 	liability of $10,000 or more during a fiscal year ending June 30 must remit all liabilities in 
48.22 	the all subsequent calendar year years by electronic means.

48.23 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
48.24 	2013, and all fiscal years thereafter.

48.25 	Sec. 8. Minnesota Statutes 2012, section 297G.09, subdivision 6, is amended to read:
48.26 		Subd. 6.Electronic payments. A licensed brewer, importer, or wholesaler having 
48.27 	an excise tax liability of $10,000 or more during a fiscal year ending June 30 must remit 
48.28 	all excise tax liabilities in the all subsequent calendar year years by electronic means.

48.29 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
48.30 	2013, and all fiscal years thereafter.

49.1 	Sec. 9. [297I.11] AUTOMOBILE THEFT PREVENTION SURCHARGE.
49.2 		Subdivision 1.Surcharge. Each insurer engaged in the writing of policies of 
49.3 	automobile insurance shall collect a surcharge, at the rate of 50 cents per vehicle 
49.4 	for every six months of coverage, on each policy of automobile insurance providing 
49.5 	comprehensive insurance coverage issued or renewed in this state. The surcharge may not 
49.6 	be considered premium for any purpose, including the computation of premium tax or 
49.7 	agents' commissions. The amount of the surcharge must be separately stated on either a 
49.8 	billing or policy declaration sent to an insured. Insurers shall remit the revenue derived 
49.9 	from this surcharge to the commissioner of revenue for purposes of the automobile theft 
49.10 	prevention program described in section 65B.84. For purposes of this subdivision, "policy 
49.11 	of automobile insurance" has the meaning given it in section 65B.14, covering only the 
49.12 	following types of vehicles as defined in section 168.002:
49.13 	(1) a passenger automobile;
49.14 	(2) a pickup truck;
49.15 	(3) a van but not commuter vans as defined in section 168.126; or
49.16 	(4) a motorcycle,
49.17 	except that no vehicle with a gross vehicle weight in excess of 10,000 pounds is included 
49.18 	within this definition.
49.19 		Subd. 2.Automobile theft prevention account. A special revenue account in 
49.20 	the state treasury shall be credited with the proceeds of the surcharge imposed under 
49.21 	subdivision 1. Of the revenue in the account, $1,300,000 each year must be transferred to 
49.22 	the general fund. Revenues in excess of $1,300,000 each year may be used only for the 
49.23 	automobile theft prevention program described in section 65B.84.
49.24 		Subd. 3.Collection and administration. The commissioner shall collect and 
49.25 	administer the surcharge imposed by this section in the same manner as the taxes imposed 
49.26 	by this chapter.

49.27 	EFFECTIVE DATE. This section is effective for premiums collected after June 
49.28 	30, 2013.

49.29 	Sec. 10. Minnesota Statutes 2012, section 297I.30, is amended by adding a subdivision 
49.30 	to read:
49.31 		Subd. 10.Automobile theft prevention surcharge. On or before May 1, August 
49.32 	1, November 1, and February 1 of each year, every insurer required to pay the surcharge 
49.33 	under section 297I.11 shall file a return with the commissioner for the preceding 
50.1 	three-month period ending March 31, June 30, September 30, and December 31, in the 
50.2 	form prescribed by the commissioner.

50.3 	EFFECTIVE DATE. This section is effective for premiums collected after June 
50.4 	30, 2013.

50.5 	Sec. 11. Minnesota Statutes 2012, section 297I.35, subdivision 2, is amended to read:
50.6 		Subd. 2.Electronic payments. If the aggregate amount of tax and surcharges due 
50.7 	under this chapter during a fiscal year ending June 30 is equal to or exceeds $10,000, or 
50.8 	if the taxpayer is required to make payment of any other tax to the commissioner by 
50.9 	electronic means, then all tax and surcharge payments in the all subsequent calendar year
50.10 	 years must be paid by electronic means.

50.11 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
50.12 	2013, and all fiscal years thereafter.

50.13 	Sec. 12. Minnesota Statutes 2012, section 473.843, subdivision 3, is amended to read:
50.14 		Subd. 3.Payment of fee. On or before the 20th day of each month each operator 
50.15 	shall pay the fee due under this section for the previous month, using a form provided 
50.16 	by the commissioner of revenue.
50.17 	An operator having a fee of $10,000 or more during a fiscal year ending June 30 
50.18 	must pay all fees in the all subsequent calendar year years by electronic means.

50.19 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
50.20 	2013, and all fiscal years thereafter.

50.21 	Sec. 13.  REPEALER.
 50.22 	(a) Minnesota Statutes 2012, section 168A.40, subdivisions 3 and 4, are repealed 
50.23 	effective for premiums collected after June 30, 2013.
50.24 	(b) Minnesota Statutes 2012, section 270C.145, is repealed the day following final 
50.25 	enactment.

50.26 	ARTICLE 6
50.27 	SUNSET REPEAL

50.28 	Section 1. Minnesota Statutes 2012, section 254A.035, subdivision 2, is amended to 
50.29 	read:
51.1 		Subd. 2.Membership terms, compensation, removal and expiration. The 
51.2 	membership of this council shall be composed of 17 persons who are American Indians 
51.3 	and who are appointed by the commissioner. The commissioner shall appoint one 
51.4 	representative from each of the following groups: Red Lake Band of Chippewa Indians; 
51.5 	Fond du Lac Band, Minnesota Chippewa Tribe; Grand Portage Band, Minnesota 
51.6 	Chippewa Tribe; Leech Lake Band, Minnesota Chippewa Tribe; Mille Lacs Band, 
51.7 	Minnesota Chippewa Tribe; Bois Forte Band, Minnesota Chippewa Tribe; White Earth 
51.8 	Band, Minnesota Chippewa Tribe; Lower Sioux Indian Reservation; Prairie Island Sioux 
51.9 	Indian Reservation; Shakopee Mdewakanton Sioux Indian Reservation; Upper Sioux 
51.10 	Indian Reservation; International Falls Northern Range; Duluth Urban Indian Community; 
51.11 	and two representatives from the Minneapolis Urban Indian Community and two from the 
51.12 	St. Paul Urban Indian Community. The terms, compensation, and removal of American 
51.13 	Indian Advisory Council members shall be as provided in section 15.059. The council 
51.14 	expires June 30, 2014, or in accordance with section 3D.21, whichever is later.

51.15 	Sec. 2. Minnesota Statutes 2012, section 254A.04, is amended to read:
51.16 	254A.04 CITIZENS ADVISORY COUNCIL.
51.17 	There is hereby created an Alcohol and Other Drug Abuse Advisory Council to 
51.18 	advise the Department of Human Services concerning the problems of alcohol and 
51.19 	other drug dependency and abuse, composed of ten members. Five members shall be 
51.20 	individuals whose interests or training are in the field of alcohol dependency and abuse; 
51.21 	and five members whose interests or training are in the field of dependency and abuse of 
51.22 	drugs other than alcohol. The terms, compensation and removal of members shall be as 
51.23 	provided in section 15.059. The council expires June 30, 2014, or in accordance with 
51.24 	section 3D.21, whichever is later. The commissioner of human services shall appoint 
51.25 	members whose terms end in even-numbered years. The commissioner of health shall 
51.26 	appoint members whose terms end in odd-numbered years.

51.27 	Sec. 3. Minnesota Statutes 2012, section 256B.093, subdivision 1, is amended to read:
51.28 		Subdivision 1.State traumatic brain injury program. The commissioner of 
51.29 	human services shall:
51.30 	(1) maintain a statewide traumatic brain injury program;
51.31 	(2) supervise and coordinate services and policies for persons with traumatic brain 
51.32 	injuries;
51.33 	(3) contract with qualified agencies or employ staff to provide statewide 
51.34 	administrative case management and consultation;
52.1 	(4) maintain an advisory committee to provide recommendations in reports to the 
52.2 	commissioner regarding program and service needs of persons with brain injuries;
52.3 	(5) investigate the need for the development of rules or statutes for the brain injury 
52.4 	home and community-based services waiver;
52.5 	(6) investigate present and potential models of service coordination which can be 
52.6 	delivered at the local level; and
52.7 	(7) the advisory committee required by clause (4) must consist of no fewer than ten 
52.8 	members and no more than 30 members. The commissioner shall appoint all advisory 
52.9 	committee members to one- or two-year terms and appoint one member as chair. 
52.10 	Notwithstanding section 15.059, subdivision 5, the advisory committee does not terminate 
52.11 	until June 30, 2014, or in accordance with section 3D.21, whichever is later.

52.12 	Sec. 4. Minnesota Statutes 2012, section 260.835, subdivision 2, is amended to read:
52.13 		Subd. 2.Expiration. Notwithstanding section 15.059, subdivision 5, the American 
52.14 	Indian Child Welfare Advisory Council expires June 30, 2014, or in accordance with 
52.15 	section 3D.21, whichever is later.

52.16 	Sec. 5. Laws 2012, chapter 278, article 1, section 5, is amended to read:
52.17 	Sec. 5. COUNCIL ON BLACK MINNESOTANS.
 52.18 	The Office of the Legislative Auditor should conduct a financial audit of the 
52.19 	Council on Black Minnesotans by December 1, 2013. In its next report to the Sunset 
52.20 	Advisory Commission governor and legislature under Minnesota Statutes, section 3.9225, 
52.21 	subdivision 7, the Council on Black Minnesotans must respond to any issues raised in this 
52.22 	audit and to issues raised in previous audits.

52.23 	Sec. 6. REVISOR'S INSTRUCTION.
 52.24 	The revisor of statutes shall delete all references to "the Sunset Advisory 
52.25 	Commission" wherever they appear in Minnesota Statutes, and shall make other changes 
52.26 	as necessary in Minnesota Statutes as a result of the enactment of this article.

52.27 	Sec. 7.  REPEALER.
 52.28 	(a)  Minnesota Statutes 2012, sections 3D.01; 3D.02; 3D.03; 3D.04; 3D.045; 3D.05; 
52.29 	3D.06; 3D.065; 3D.07; 3D.08; 3D.09; 3D.10; 3D.11; 3D.12; 3D.13; 3D.14; 3D.15; 3D.16; 
52.30 	3D.17; 3D.18; 3D.19; 3D.20; and 3D.21, subdivisions 2, 3, 4, 5, 6, 7, and 8, are repealed.
52.31 	(b)  Laws 2012, chapter 278, article 1, section 6, is  repealed.

53.1 	Sec. 8. EFFECTIVE DATE.
 53.2 	Sections 1 to 7 are effective the day following final enactment.