1.1 	A bill for an act
1.2 	relating to the operation of state government; appropriating money for the 
1.3 	legislature, governor's office, state auditor, attorney general, secretary of state, 
1.4 	certain agencies, boards, councils, retirement funds; cancellation of certain 
1.5 	appropriations; precluding agencies from transferring money to the governor's 
1.6 	office for services; constraining the state auditor's use of funds for litigation 
1.7 	expenses; requiring the state auditor to reimburse Wright, Becker, and Ramsey 
1.8 	Counties for litigation expenses; limiting the state auditor's rates for 2017; requiring 
1.9 	legislative approval for certain rules; making an ALJ decision the final decision 
1.10 	in contested cases; creating an affirmative defense to certain rule violations; 
1.11 	modifying the employee gainsharing program; requiring the Department of 
1.12 	Administration to assess agencies for certain services; requiring the Office of 
1.13 	MN.IT Services to report its project portfolio to the legislature; limiting severance 
1.14 	pay for highly paid civil service employees; permitting state employees to opt out 
1.15 	of insurance coverage under SEGIP; limiting public employer compensation under 
1.16 	contracts to appropriated amounts; modifying uses for Support Our Troops account; 
1.17 	requiring the Department of Veterans Affairs to develop a policy to grant free or 
1.18 	reduced-cost burials in state veterans cemeteries to eligible indigent dependents 
1.19 	of veterans; providing statutory appropriations to the Racing Commission in the 
1.20 	event of a failure to pass a biennial appropriation; raising caps on Mighty Ducks 
1.21 	grants; modifying expense calculation for the State Lottery; creating an advisory 
1.22 	task force on fiscal notes; setting a deadline for consolidation of state information 
1.23 	technology and for use of cloud-based solutions; creating a legislative commission 
1.24 	to review consolidation of the state's information technology; establishing 
1.25 	requirements for a grandfathered license for eyelash technicians; creating a working 
1.26 	group for a rules status system; creating a grant program for election equipment; 
1.27 	repealing the state auditor enterprise fund; repealing the campaign finance public 
1.28 	subsidy program; repealing lottery payouts to people under 18;amending Minnesota 
1.29 	Statutes 2016, sections 4.46; 6.481, subdivision 6; 6.56, subdivision 2; 6.581, 
1.30 	subdivision 4; 14.18, subdivision 1; 14.27; 14.389, subdivision 3; 14.57; 16A.90; 
1.31 	16B.055, subdivision 1; 16B.371; 16B.4805, subdivisions 2, 4; 16E.0466; 43A.17, 
1.32 	subdivision 11; 43A.24, by adding a subdivision; 155A.23, subdivisions 10, 15, 
1.33 	16, by adding a subdivision; 155A.29, subdivisions 1, 2; 155A.30, subdivisions 
1.34 	2, 5; 179A.20, by adding a subdivision; 190.19, subdivisions 2, 2a; 197.236, 
1.35 	subdivision 9; 240.15, subdivision 6; 240.155, subdivision 1; 240A.09; 349A.08, 
1.36 	subdivision 2; 349A.10, subdivision 6; Laws 2016, chapter 127, section 8; 
1.37 	proposing coding for new law in Minnesota Statutes, chapters 6; 14; 16A; 240; 
1.38 	repealing Minnesota Statutes 2016, sections 6.581, subdivision 1; 10A.30; 10A.31, 
1.39 	subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b, 11; 10A.315; 10A.321; 
2.1 	10A.322, subdivisions 1, 2, 4; 10A.323; 155A.23, subdivision 8; 349A.08, 
2.2 	subdivision 3.
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. APPROPRIATIONS.
 	
2.7 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
2.8 	and for the purposes specified in this article. The appropriations are from the general fund, 
2.9 	or another named fund, and are available for the fiscal years indicated for each purpose. 
2.10 	The figures "2018" and "2019" used in this article mean that the appropriations listed under 
2.11 	them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. 
2.12 	"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" 
2.13 	is fiscal years 2018 and 2019.

2.14				APPROPRIATIONS
	
2.15				Available for the Year
	
2.16				Ending June 30
	
2.17					2018
		2019

2.18	Sec. 2. LEGISLATURE

2.19	Subdivision 1.Total Appropriation
 	$
	81,706,000
	$
	81,512,000

2.20	Appropriations by Fund
	
2.21		2018
	2019
	
2.22	General
	81,578,000
	81,384,000
	
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
 		32,299,000
		32,105,000

2.28	Subd. 3.House of Representatives
 		32,383,000
		32,383,000
	
2.29 	During the biennium ending June 30, 2019, 
2.30 	any revenues received by the house of 
2.31 	representatives from voluntary donations to 
2.32 	support broadcast or print media are 
2.33 	appropriated to the house of representatives.

2.34	Subd. 4.Legislative Coordinating Commission
 		17,024,000
		17,024,000

3.1	Appropriations by Fund
	
3.2		2018
	2019
	
3.3	General
	16,896,000
	16,896,000
	
3.4	Health Care Access
	128,000
	128,000
	
3.5 	$6,564,000 the first year and $6,564,000 the 
3.6 	second year are for the Office of the 
3.7 	Legislative Auditor.
3.8 	$6,180,000 the first year and $6,180,000 the 
3.9 	second year are for the Office of the Revisor 
3.10 	of Statutes.
3.11 	From its funds, $10,000 each year is for 
3.12 	purposes of the legislators' forum, through 
3.13 	which Minnesota legislators meet with 
3.14 	counterparts from South Dakota, North 
3.15 	Dakota, and Manitoba to discuss issues of 
3.16 	mutual concern.

3.17
3.18	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	4,605,000
	$
	4,605,000
	
3.19 	(a) This appropriation is to fund the Office of 
3.20 	the Governor and Lieutenant Governor.
3.21 	(b) Up to $19,000 the first year and up to 
3.22 	$19,000 the second year are for necessary 
3.23 	expenses in the normal performance of the 
3.24 	Governor's and Lieutenant Governor's duties 
3.25 	for which no other reimbursement is provided.
3.26 	(c) The following amounts that are 
3.27 	appropriated from the general fund in fiscal 
3.28 	years 2018 and 2019 to the specified agency 
3.29 	and are budgeted to be transferred to the 
3.30 	governor for personnel costs incurred by the 
3.31 	Offices of the Governor and the Lieutenant 
3.32 	Governor to support the agencies are canceled 
3.33 	to the general fund and the base for each 
4.1 	agency is reduced by the specified amount for 
4.2 	fiscal years 2020 and 2021.

4.3	Agency
		2018
			2019
	
4.4	Commerce
					67,000
			67,000
	
4.5
4.6	Employment and 
Economic Development
					109,000
			109,000
	
4.7	Education
					58,000
			58,000
	
4.8
4.9	Office of Higher 
Education
					25,000
			25,000
	
4.10	Administration
					25,000
			25,000
	
4.11
4.12	Management and 
Budget
					21,000
			21,000
	
4.13	MN.IT Services
					25,000
			25,000
	
4.14	Revenue
					41,000
			41,000
	
4.15	Health
					58,000
			58,000
	
4.16	Human Services
					247,000
			247,000
	
4.17	Veterans Affairs
					16,000
			16,000
	
4.18	Military Affairs
					17,000
			17,000
	
4.19	Corrections
					58,000
			58,000
	
4.20	Transportation
					20,000
			20,000
	
4.21 	(d) The following amounts that are budgeted 
4.22 	to be transferred from the specified fund for 
4.23 	the specified agencies to the governor for 
4.24 	personnel costs incurred by the Offices of the 
4.25 	Governor and Lieutenant Governor to support 
4.26 	the agencies during the previous fiscal year 
4.27 	are transferred from the specified fund to the 
4.28 	general fund.

4.29	Agency
	Fund
				2018
		2019
	
4.314.30
	Agriculture
	Miscellaneous Special 
Revenue Fund
				41,000
		41,000
	
4.334.32
	Housing Finance Agency
	Housing Finance Agency 
Fund
				33,000
		33,000
	
4.354.34
	Labor and Industry
	Restricted Special 
Revenue Fund
				41,000
		41,000
	
4.36
4.37	Iron Range Resources and 
Rehabilitation Board
	Iron Range Resources 
and Rehabilitation Fund
				26,000
		26,000
	
4.394.38
	Higher Education
	Office of Higher 
Education Fund
				16,000
		16,000
	
5.25.1
	Management and Budget
	State Employee Group 
Insurance Program Fund
				21,000
		21,000
	
5.45.3
	Public Safety
	Restricted Special 
Revenue Fund
				41,000
		41,000
	
5.65.5
	Natural Resources
	Miscellaneous Special 
Revenue Fund
				84,000
		84,000
	
5.85.7
	Pollution Control Agency
	Miscellaneous Special 
Revenue Fund
				67,000
		67,000
	
5.9	Transportation
	Transit Assistance Fund
				40,000
		40,000
	
5.115.10
	Transportation
	County State-Aid Roads 
Fund
				30,000
		30,000
	
5.135.12
	Transportation
	Municipal State-Aid 
Roads Fund
				9,000
		9,000

5.14	Sec. 4. STATE AUDITOR

5.15	Subdivision 1.Total Appropriation
 	$
	7,062,000
	$
	7,062,000
	
5.16 	The amounts that may be spent for each 
5.17 	purpose are specified in the following 
5.18 	subdivisions.

5.19	Subd. 2.Audit Practice
 		5,081,000
		5,081,000

5.20	Subd. 3.Legal and Special Investigations
 		318,000
		318,000

5.21	Subd. 4.Government Information
 		598,000
		598,000

5.22	Subd. 5.Pension Oversight
 		448,000
		448,000

5.23	Subd. 6.Operations Management
 		358,000
		358,000

5.24	Subd. 7.Constitutional Office
 		259,000
		259,000

5.25	Sec. 5. ATTORNEY GENERAL

5.26	Subdivision 1.Total Appropriation
 	$
	22,683,000
	$
	22,683,000

5.27	Appropriations by Fund
	
5.28		2018
	2019
	
5.29	General
	20,465,000
	20,465,000
	
5.30
5.31	State Government 
Special Revenue
	1,823,000
	1,823,000
	
5.32	Environmental
	145,000
	145,000
	
5.33	Remediation
	250,000
	250,000
	
6.1 	The amounts that may be spent for each 
6.2 	purpose are specified in the following 
6.3 	subdivisions.

6.4	Subd. 2.Government Legal Services
 		3,652,000
		3,652,000

6.5	Subd. 3.Regulatory Law and Professions
 		4,420,000
		4,420,000

6.6	Appropriations by Fund
	
6.7		2018
	2019
	
6.8	General
	2,223,000
	2,223,000
	
6.96.10
	State Government 
Special Revenue
	1,802,000
	1,802,000
	
6.11	Environmental
	250,000
	250,000
	
6.12	Remediation
	145,000
	145,000

6.13	Subd. 4.State Government Services
 		6,157,000
		6,157,000

6.14	Appropriations by Fund
	
6.15		2018
	2019
	
6.16	General
	6,136,000
	6,136,000
	
6.17
6.18	State Government 
Special Revenue
	21,000
	21,000

6.19	Subd. 5.Civil Law Section
 		3,010,000
		3,010,000

6.20	Subd. 6.Civil Litigation
 		1,495,000
		1,495,000

6.21	Subd. 7.Administrative Operations
 		3,949,000
		3,949,000

6.22	Sec. 6. SECRETARY OF STATE

6.23	Subdivision 1.Total Appropriation
 	$
	7,502,000
	$
	6,291,000
	
6.24 	The base for fiscal year 2020 is $6,180,000 
6.25 	and the base for fiscal year 2021 is 
6.26 	$6,180,000.
6.27 	The amounts that may be spent for each 
6.28 	purpose are specified in the following 
6.29 	subdivisions.

7.1	Subd. 2.Administration
 		594,000
		606,000

7.2	Subd. 3.Safe at Home
 		659,000
		676,000

7.3	Subd. 4.Business Services
 		1,617,000
		1,391,000

7.4	Subd. 5.Elections
 		4,632,000
		3,618,000
	
7.5 	$1,323,000 the first year is for the voting 
7.6 	equipment grant established in article 3, 
7.7 	section 1. This is a onetime appropriation.

7.8
7.9	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	976,000
	$
	976,000

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

7.11	Sec. 9. ADMINISTRATIVE HEARINGS
 	$
	7,633,000
	$
	7,633,000

7.12	Appropriations by Fund
	
7.13		2018
	2019
	
7.14	General
	383,000
	383,000
	
7.15
7.16	Workers' 
Compensation
	7,250,000
	7,250,000
	
7.17 	Campaign Violations Hearings. $115,000 
7.18 	in fiscal year 2018 and $115,000 in fiscal year 
7.19 	2019 are appropriated from the general fund 
7.20 	for the cost of considering complaints filed 
7.21 	under Minnesota Statutes, section 211B.32. 
7.22 	These amounts may be used in either year of 
7.23 	the biennium.
7.24 	$6,000 in fiscal year 2018 and $6,000 in fiscal 
7.25 	year 2019 are appropriated from the general 
7.26 	fund to the Office of Administrative Hearings 
7.27 	for the cost of considering data practices 
7.28 	complaints filed under Minnesota Statutes, 
7.29 	section 13.085. These amounts may be used 
7.30 	in either year of the biennium.

7.31	Sec. 10. MN.IT SERVICES
 	$
	4,622,000
	$
	2,622,000
	
8.1 	$3,300,000 the first year and $1,300,000 the 
8.2 	second year are for enhancements to 
8.3 	cybersecurity across state government.
8.4 	$5,000,000 of the unobligated balance as of 
8.5 	March 15, 2017, in the information and 
8.6 	telecommunications technology systems and 
8.7 	services account in the special revenue fund 
8.8 	must be used for enhancements to 
8.9 	cybersecurity across state government. At the 
8.10 	end of the fiscal year 2016-2017 biennium, an 
8.11 	additional $5,000,000 of unexpended agency 
8.12 	operating dollars transferred into the account 
8.13 	must be used for cybersecurity enhancements 
8.14 	across state government. The state chief 
8.15 	information officer must report to the chairs 
8.16 	and ranking minority members of the 
8.17 	committees in the senate and house of 
8.18 	representatives with jurisdiction over state 
8.19 	government finance by August 15, 2017, on 
8.20 	how the $10,000,000 in funds will be used to 
8.21 	enhance cybersecurity.
8.22 	The commissioner of management and budget 
8.23 	is authorized to provide cash flow assistance 
8.24 	of up to $110,000,000 from the special 
8.25 	revenue fund or other statutory general funds 
8.26 	as defined in Minnesota Statutes, section 
8.27 	16A.671, subdivision 3, paragraph (a), to the 
8.28 	Office of MN.IT Services for the purpose of 
8.29 	managing revenue and expenditure 
8.30 	differences. These funds shall be repaid with 
8.31 	interest by the end of the fiscal year 2019 
8.32 	closing period.
8.33 	During the biennium ending June 30, 2019, 
8.34 	MN.IT Services must not charge fees to a 
8.35 	public noncommercial educational television 
9.1 	broadcast station eligible for funding under 
9.2 	Minnesota Statutes, chapter 129D, for access 
9.3 	to the state broadcast infrastructure. If the 
9.4 	access fees not charged to public 
9.5 	noncommercial educational television 
9.6 	broadcast stations total more than $400,000 
9.7 	for the biennium, the office may charge for 
9.8 	access fees in excess of these amounts.

9.9	Sec. 11. ADMINISTRATION

9.10	Subdivision 1.Total Appropriation
 	$
	20,036,000
	$
	19,536,000
	
9.11 	The amounts that may be spent for each 
9.12 	purpose are specified in the following 
9.13 	subdivisions.

9.14	Subd. 2.Government and Citizen Services
 		7,149,000
		7,001,000

9.15	(a) Council on Developmental Disabilities
		74,000
		74,000
	
9.16
9.17	(b) Olmstead Plan Increased 
Capacity
				148,000
		-0-
	
9.18
9.19
9.20
9.21
9.22
9.23
9.24	For administrative costs to 
provide services to state 
agencies under the Olmstead 
Plan serving people with 
disabilities. This is a onetime 
appropriation and is available 
until June 30, 2019.
							
9.25
9.26	(c) Materials Management 
Division
				2,400,000
		2,400,000
	
9.27
9.28	(d) Real Estate and 
Construction Services
				2,466,000
		2,466,000
	
9.29
9.30	(e) Enterprise Real Property 
Program
				674,000
		674,000
	
9.31
9.32
9.33	(f) State Agency 
Accommodation 
Reimbursement
				100,000
		100,000
	
9.34
9.35
9.36
9.37
9.38
9.39	$100,000 the first year and 
$100,000 the second year are 
credited to the accommodation 
account established in 
Minnesota Statutes, section 
16B.4805.
							
9.40	(g) State Archeologist
				215,000
		215,000
	
9.41
9.42	(h) Information Policy 
Analysis
				525,000
		525,000
	
10.1	(i) State Demographer
				547,000
		547,000

10.2	Subd. 3.Strategic Management
 		1,858,000
		1,858,000

10.3	Subd. 4.Fiscal Agent
 		11,277,000
		10,777,000
	
10.4 	The appropriations under this section are to 
10.5 	the commissioner of administration for the 
10.6 	purposes specified.
10.7 	In-Lieu of Rent. $8,158,000 the first year and 
10.8 	$8,158,000 the second year are for space costs 
10.9 	of the legislature and veterans organizations, 
10.10 	ceremonial space, and statutorily free space.
10.11 	Public Broadcasting. (a) $1,550,000 the first 
10.12 	year and $1,550,000 the second year are for 
10.13 	matching grants for public television.
10.14 	(b) $250,000 the first year and $250,000 the 
10.15 	second year are for public television 
10.16 	equipment grants under Minnesota Statutes, 
10.17 	section 129D.13.
10.18 	(c) $100,000 the first year is for a grant to 
10.19 	Twin Cities Public Television to produce the 
10.20 	Vietnam: Minnesota Remembers project.
10.21 	(d) The commissioner of administration must 
10.22 	consider the recommendations of the 
10.23 	Minnesota Public Television Association 
10.24 	before allocating the amount appropriated in 
10.25 	paragraphs (a) and (b) for equipment or 
10.26 	matching grants.
10.27 	(e) $392,000 the first year and $392,000 the 
10.28 	second year are for community service grants 
10.29 	to public educational radio stations. This 
10.30 	appropriation may be used to disseminate 
10.31 	emergency information in foreign languages.
10.32 	(f) $117,000 the first year and $117,000 the 
10.33 	second year are for equipment grants to public 
11.1 	educational radio stations. This appropriation 
11.2 	may be used for the repair, rental, and 
11.3 	purchase of equipment including equipment 
11.4 	under $500.
11.5 	(g) $310,000 the first year and $310,000 the 
11.6 	second year are for equipment grants to 
11.7 	Minnesota Public Radio, Inc., including 
11.8 	upgrades to Minnesota's Emergency Alert and 
11.9 	AMBER Alert Systems.
11.10 	(h) $400,000 the first year is for a grant to 
11.11 	Minnesota Public Radio, Inc. for upgrades to 
11.12 	Minnesota's Emergency Alert and AMBER 
11.13 	Alert Systems.
11.14 	(i) The appropriations in paragraphs (e), (f), 
11.15 	(g), and (h), may not be used for indirect costs 
11.16 	claimed by an institution or governing body.
11.17 	(j) The commissioner of administration must 
11.18 	consider the recommendations of the 
11.19 	Minnesota Public Educational Radio Stations 
11.20 	before awarding grants under Minnesota 
11.21 	Statutes, section 129D.14, using the 
11.22 	appropriations in paragraphs (e) and (f). No 
11.23 	grantee is eligible for a grant unless they are 
11.24 	a member of the Association of Minnesota 
11.25 	Public Educational Radio Stations on or before 
11.26 	July 1, 2015.
11.27 	(k) Any unencumbered balance remaining the 
11.28 	first year for grants to public television or 
11.29 	radio stations does not cancel and is available 
11.30 	for the second year.

11.31
11.32	Sec. 12. CAPITOL AREA ARCHITECTURAL 
AND PLANNING BOARD
 	$
	327,000
	$
	327,000

11.33
11.34	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET

12.1	Subdivision 1.Total Appropriation
 	$
	21,922,000
	$
	21,922,000
	
12.2 	The amounts that may be spent for each 
12.3 	purpose are specified in the following 
12.4 	subdivisions.

12.5	Subd. 2.Accounting Services
 		4,489,000
		4,489,000

12.6	Subd. 3.Budget Services
 		3,376,000
		3,376,000

12.7	Subd. 4.Economic Analysis
 		507,000
		507,000

12.8	Subd. 5.Debt Management
 		439,000
		439,000

12.9	Subd. 6.Enterprise Human Resources
 		3,209,000
		3,209,000

12.10	Subd. 7.Labor Relations
 		1,039,000
		1,039,000

12.11	Subd. 8.Agency Administration
 		7,870,000
		7,870,000

12.12
12.13	Subd. 9.Enterprise Communication and 
Planning
 		993,000
		993,000
	
12.14 	The commissioner must report to the chairs 
12.15 	and ranking minority members of the 
12.16 	committees in the senate and house of 
12.17 	representatives with jurisdiction over state 
12.18 	government finance by September 15 of each 
12.19 	year on funding for the executive recruiter 
12.20 	position that was supported by appropriations 
12.21 	to other agencies during the previous fiscal 
12.22 	year.

12.23	Sec. 14. REVENUE

12.24	Subdivision 1.Total Appropriation
 	$
	141,784,000
	$
	141,784,000

12.25	Appropriations by Fund
	
12.26		2018
	2019
	
12.27	General
	137,548,000
	137,548,000
	
12.28	Health Care Access
	1,749,000
	1,749,000
	
12.29
12.30	Highway User Tax 
Distribution
	2,184,000
	2,184,000
	
12.31	Environmental
	303,000
	303,000
	
12.32 	The commissioner must give priority to 
12.33 	processing personal income tax returns, 
13.1 	taxpayer fraud prevention, and assure that 
13.2 	taxpayer refunds are not delayed when 
13.3 	determining spending plans for each of the 
13.4 	activities in this section. The commissioner 
13.5 	may transfer agency operational money 
13.6 	between activities within the same fund in this 
13.7 	section if it is determined that there is 
13.8 	insufficient money within an activity to meet 
13.9 	these priorities. Any transfers of money within 
13.10 	activities must be reported two weeks prior to 
13.11 	the transfer taking place to the chairs and 
13.12 	ranking minority members of the committees 
13.13 	in the house of representatives and senate with 
13.14 	jurisdiction over state government finance.

13.15	Subd. 2.Tax System Management
 		114,313,000
		114,313,000

13.16	Appropriations by Fund
	
13.17		2018
	2019
	
13.18	General
	110,077,000
	110,077,000
	
13.19	Health Care Access
	1,749,000
	1,749,000
	
13.20
13.21	Highway User Tax 
Distribution
	2,184,000
	2,184,000
	
13.22	Environmental
	303,000
	303,000

13.23	(a) Operations Support
					
13.24	General
				9,627,000
		9,627,000
	
13.25	Health Care Access
				126,000
		126,000
	
13.26 	Taxpayer Assistance Grants. $400,000 in 
13.27 	fiscal year 2018 and $400,000 in fiscal year 
13.28 	2019 from the general fund are for grants to 
13.29 	one or more nonprofit organizations, 
13.30 	qualifying under section 501(c)(3) of the 
13.31 	Internal Revenue Code of 1986, to coordinate, 
13.32 	facilitate, encourage, and aid in the provision 
13.33 	of taxpayer assistance services. The 
13.34 	unencumbered balance in the first year does 
13.35 	not cancel but is available for the second year.
14.1 	For purposes of this appropriation, "taxpayer 
14.2 	assistance services" means accounting and tax 
14.3 	preparation services provided by volunteers 
14.4 	to low-income, elderly, and disadvantaged 
14.5 	Minnesota residents to help them file federal 
14.6 	and state income tax returns, Minnesota 
14.7 	property tax refund claims, and to provide 
14.8 	personal representation before the Department 
14.9 	of Revenue and Internal Revenue Service.

14.10	(b) Appeals, Legal Services, and Tax Research
					
14.11	General
				6,961,000
		6,961,000
	
14.12	Health Care Access
				113,000
		113,000

14.13	(c) Payment and Return Processing
					
14.14	General
				12,650,000
		12,650,000
	
14.15	Health Care Access
				51,000
		51,000
	
14.16
14.17	Highway User Tax 
Distribution
				343,000
		343,000

14.18	(d) Administration of State Taxes
					
14.19	General
				54,958,000
		54,958,000
	
14.20	Health Care Access
				1,407,000
		1,407,000
	
14.21
14.22	Highway User Tax 
Distribution
				1,621,000
		1,621,000
	
14.23	Environmental
				303,000
		303,000

14.24
14.25	(e) Technology Development, Implementation, 
and Support
					
14.26	General
				21,873,000
		21,873,000
	
14.27	Health Care Access
				52,000
		52,000
	
14.28
14.29	Highway User Tax 
Distribution
				220,000
		220,000

14.30	(f) Property Tax Administration and State Aid
					
14.31	General
				4,008,000
		4,008,000

14.32	Subd. 3.Debt Collection Management
 		27,471,000
		27,471,000

14.33	Sec. 15. GAMBLING CONTROL
 	$
	3,324,000
	$
	3,324,000
	
14.34 	These appropriations are from the lawful 
14.35 	gambling regulation account in the special 
14.36 	revenue fund.

15.1	Sec. 16. RACING COMMISSION
 	$
	835,000
	$
	890,000
	
15.2 	These appropriations are from the racing and 
15.3 	card playing regulation accounts in the special 
15.4 	revenue fund.

15.5	Sec. 17. STATE LOTTERY
 					
15.6 	Notwithstanding Minnesota Statutes, section 
15.7 	349A.10, subdivision 3, the operating budget 
15.8 	must not exceed $32,500,000 in fiscal year 
15.9 	2018 and $33,000,000 in fiscal year 2019.

15.10	Sec. 18. AMATEUR SPORTS COMMISSION
 	$
	7,458,000
	$
	292,000
	
15.11 	Mighty Ducks. $7,166,000 in fiscal year 2018 
15.12 	is appropriated from the general fund for the 
15.13 	purpose of making grants under Minnesota 
15.14 	Statutes, section 240A.09, paragraph (b). This 
15.15 	appropriation is onetime and is available until 
15.16 	June 30, 2019.

15.17
15.18	Sec. 19. COUNCIL ON MINNESOTANS OF 
AFRICAN HERITAGE
 	$
	401,000
	$
	401,000

15.19	Sec. 20. COUNCIL ON LATINO AFFAIRS
 	$
	386,000
	$
	386,000

15.20
15.21	Sec. 21. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	364,000
	$
	364,000

15.22	Sec. 22. INDIAN AFFAIRS COUNCIL
 	$
	576,000
	$
	576,000

15.23
15.24	Sec. 23. MINNESOTA HISTORICAL 
SOCIETY

15.25	Subdivision 1.Total Appropriation
 	$
	21,013,000
	$
	21,013,000
	
15.26 	The amounts that may be spent for each 
15.27 	purpose are specified in the following 
15.28 	subdivisions.

15.29	Subd. 2.Operations and Programs
 		20,731,000
		20,731,000
	
16.1 	Notwithstanding Minnesota Statutes, section 
16.2 	138.668, the Minnesota Historical Society may 
16.3 	not charge a fee for its general tours at the 
16.4 	Capitol, but may charge fees for special 
16.5 	programs other than general tours.

16.6	Subd. 3.Fiscal Agent

16.7	(a) Minnesota Air National Guard Museum
		17,000
		17,000

16.8	(b) Hockey Hall of Fame
		100,000
		100,000

16.9	(c) Minnesota Military Museum
		50,000
		50,000

16.10	(d) Farmamerica
		115,000
		115,000
	
16.11 	Balances Forward. Any unencumbered 
16.12 	balance remaining in this subdivision the first 
16.13 	year does not cancel but is available for the 
16.14 	second year of the biennium.

16.15	Sec. 24. BOARD OF THE ARTS

16.16	Subdivision 1.Total Appropriation
 	$
	7,500,000
	$
	7,500,000
	
16.17 	The amounts that may be spent for each 
16.18 	purpose are specified in the following 
16.19 	subdivisions.

16.20	Subd. 2.Operations and Services
 		561,000
		561,000

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

16.22	Subd. 4.Regional Arts Councils
 		2,139,000
		2,139,000
	
16.23 	Unencumbered Balance Available. Any 
16.24 	unencumbered balance remaining in this 
16.25 	section the first year does not cancel, but is 
16.26 	available for the second year of the biennium.
16.27 	Projects located in Minnesota; travel 
16.28 	restriction. Money appropriated in this section 
16.29 	and distributed as grants may only be spent 
16.30 	on projects located in Minnesota. A recipient 
16.31 	of a grant funded by an appropriation in this 
16.32 	section must not use more than ten percent of 
17.1 	the total grant for costs related to travel outside 
17.2 	the state of Minnesota.

17.3	Sec. 25. MINNESOTA HUMANITIES CENTER
 	$
	332,000
	$
	332,000

17.4	Sec. 26. BOARD OF ACCOUNTANCY
 	$
	609,000
	$
	609,000

17.5
17.6
17.7
17.8	Sec. 27. BOARD OF ARCHITECTURE 
ENGINEERING, LAND SURVEYING, 
LANDSCAPE ARCHITECTURE, 
GEOSCIENCE, AND INTERIOR DESIGN
 	$
	754,000
	$
	754,000

17.917.10
	Sec. 28. BOARD OF COSMETOLOGIST 
EXAMINERS
 	$
	2,455,000
	$
	2,455,000
	
17.11 	The executive director must report quarterly 
17.12 	to the chairs and ranking minority members 
17.13 	of the committees in the house of 
17.14 	representatives and senate with jurisdiction 
17.15 	over state government finance on the number 
17.16 	of inspections conducted by license type in 
17.17 	the past quarter, number and percent of total 
17.18 	salons and schools inspected within the last 
17.19 	year, total number of licensees by type, and 
17.20 	the number of inspectors employed by the 
17.21 	board. The first report must be submitted by 
17.22 	July 15, 2017.

17.23	Sec. 29. BOARD OF BARBER EXAMINERS
 	$
	308,000
	$
	308,000

17.24
17.25	Sec. 30. GENERAL CONTINGENT 
ACCOUNTS
 	$
	1,000,000
	$
	500,000

17.26	Appropriations by Fund
	
17.27		2018
	2019
	
17.28	General
	500,000
	-0-
	
17.29
17.30	State Government 
Special Revenue
	400,000
	400,000
	
17.31
17.32	Workers' 
Compensation
	100,000
	100,000
	
18.1 	(a) The appropriations in this section may only 
18.2 	be spent with the approval of the governor 
18.3 	after consultation with the Legislative 
18.4 	Advisory Commission pursuant to Minnesota 
18.5 	Statutes, section 3.30.
18.6 	(b) If an appropriation in this section for either 
18.7 	year is insufficient, the appropriation for the 
18.8 	other year is available for it.
18.9 	(c) If a contingent account appropriation is 
18.10 	made in one fiscal year, it should be 
18.11 	considered a biennial appropriation.

18.12	Sec. 31. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
18.13 	These appropriations are to be spent by the 
18.14 	commissioner of management and budget 
18.15 	according to Minnesota Statutes, section 
18.16 	3.736, subdivision 7. If the appropriation for 
18.17 	either year is insufficient, the appropriation 
18.18 	for the other year is available for it.

18.19
18.20	Sec. 32. MINNESOTA STATE RETIREMENT 
SYSTEM

18.21	Subdivision 1.Total Appropriation
 	$
	14,893,000
	$
	15,071,000
	
18.22 	The amounts that may be spent for each 
18.23 	purpose are specified in the following 
18.24 	subdivisions.

18.25
18.26	Subd. 2.Combined Legislators and 
Constitutional Officers Retirement Plan
 		8,893,000
		9,071,000
	
18.27 	Under Minnesota Statutes, sections 3A.03, 
18.28 	subdivision 2; 3A.04, subdivisions 3 and 4; 
18.29 	and 3A.115.
18.30 	If an appropriation in this section for either 
18.31 	year is insufficient, the appropriation for the 
18.32 	other year is available for it.

19.1	Subd. 3.Judges Retirement Plan
 		6,000,000
		6,000,000
	
19.2 	For transfer to the judges retirement fund 
19.3 	under Minnesota Statutes, section 490.123. 
19.4 	$6,000,000 each fiscal year is included in the 
19.5 	base for fiscal years 2020 and 2021. This 
19.6 	transfer continues each fiscal year until the 
19.7 	judges retirement plan reaches 100 percent 
19.8 	funding as determined by an actuarial 
19.9 	valuation prepared according to Minnesota 
19.10 	Statutes, section 356.214.

19.11
19.12	Sec. 33. PUBLIC EMPLOYEES RETIREMENT 
ASSOCIATION
 	$
	16,000,000
	$
	16,000,000
	
19.13 	State payments from the general fund to the 
19.14 	Public Employees Retirement Association on 
19.15 	behalf of the former MERF division account 
19.16 	are $16,000,000 on September 15, 2017, and 
19.17 	$16,000,000 on September 15, 2018.
19.18 	These amounts are estimated to be needed 
19.19 	under Minnesota Statutes, section 353.505.

19.20
19.21	Sec. 34. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	29,831,000
	$
	29,831,000
	
19.22 	The amounts estimated to be needed are as 
19.23 	follows:
19.24 	Special Direct State Aid. $27,331,000 the 
19.25 	first year and $27,331,000 the second year are 
19.26 	for special direct state aid authorized under 
19.27 	Minnesota Statutes, section 354.436.
19.28 	Special Direct State Matching Aid. 
19.29 	$2,500,000 the first year and $2,500,000 the 
19.30 	second year are for special direct state 
19.31 	matching aid authorized under Minnesota 
19.32 	Statutes, section 354.435.

20.1
20.2	Sec. 35. ST. PAUL TEACHERS RETIREMENT 
FUND
 	$
	9,827,000
	$
	9,827,000
	
20.3 	The amounts estimated to be needed for 
20.4 	special direct state aid to the first class city 
20.5 	teachers retirement fund association authorized 
20.6 	under Minnesota Statutes, section 354A.12, 
20.7 	subdivisions 3a and 3c.

20.8	Sec. 36. MILITARY AFFAIRS

20.9	Subdivision 1.Total Appropriation
 	$
	19,616,000
	$
	19,616,000
	
20.10 	The amounts that may be spent for each 
20.11 	purpose are specified in the following 
20.12 	subdivisions.

20.13	Subd. 2.Maintenance of Training Facilities
 		6,661,000
		6,661,000

20.14	Subd. 3.General Support
 		2,607,000
		2,607,000

20.15	Subd. 4.Enlistment Incentives
 		10,348,000
		10,348,000
	
20.16 	Appropriation Availability. If appropriations 
20.17 	for either year of the biennium are insufficient, 
20.18 	the appropriation from the other year is 
20.19 	available. The appropriations for enlistment 
20.20 	incentives are available until June 30, 2021.

20.21	Sec. 37. VETERANS AFFAIRS

20.22	Subdivision 1.Total Appropriation
 	$
	74,384,000
	$
	74,374,000

20.23	Appropriations by Fund
	
20.24		2018
	2019
	
20.25	General
	74,179,000
	74,179,000
	
20.26	Special Revenue
	205,000
	195,000
	
20.27 	The amounts that may be spent for each 
20.28 	purpose are specified in the following 
20.29 	subdivisions.

20.30	Subd. 2.Veterans Programs and Services
 		17,166,000
		17,156,000

20.31	Appropriations by Fund
	
20.32		2018
	2019
	
21.1	General
	16,961,000
	16,961,000
	
21.2	Special Revenue
	205,000
	195,000
	
21.3 	Veterans Service Organizations. $353,000 
21.4 	each year is for grants to the following 
21.5 	congressionally chartered veterans service 
21.6 	organizations, as designated by the 
21.7 	commissioner: Disabled American Veterans, 
21.8 	Military Order of the Purple Heart, the 
21.9 	American Legion, Veterans of Foreign Wars, 
21.10 	Vietnam Veterans of America, AMVETS, and 
21.11 	Paralyzed Veterans of America. This funding 
21.12 	must be allocated in direct proportion to the 
21.13 	funding currently being provided by the 
21.14 	commissioner to these organizations.
21.15 	Minnesota Assistance Council for Veterans.
21.16 	$750,000 each year is for a grant to the 
21.17 	Minnesota Assistance Council for Veterans 
21.18 	to provide assistance throughout Minnesota 
21.19 	to veterans and their families who are 
21.20 	homeless or in danger of homelessness, 
21.21 	including assistance with the following:
21.22 	(1) utilities;
21.23 	(2) employment; and
21.24 	(3) legal issues.
21.25 	The assistance authorized under this paragraph 
21.26 	must be made only to veterans who have 
21.27 	resided in Minnesota for 30 days prior to 
21.28 	application for assistance and according to 
21.29 	other guidelines established by the 
21.30 	commissioner. In order to avoid duplication 
21.31 	of services, the commissioner must ensure that 
21.32 	this assistance is coordinated with all other 
21.33 	available programs for veterans.
22.1 	Honor Guards. $200,000 each year is for 
22.2 	compensation for honor guards at the funerals 
22.3 	of veterans under Minnesota Statutes, section 
22.4 	197.231.
22.5 	Minnesota GI Bill. $200,000 each year is for 
22.6 	the costs of administering the Minnesota GI 
22.7 	Bill postsecondary educational benefits, 
22.8 	on-the-job training, and apprenticeship 
22.9 	program under Minnesota Statutes, section 
22.10 	197.791. Of this amount, $100,000 is for 
22.11 	transfer to the Office of Higher Education.
22.12 	Gold Star Program. $100,000 each year is 
22.13 	for administering the Gold Star Program for 
22.14 	surviving family members of deceased 
22.15 	veterans.
22.16 	County Veterans Service Office. $1,100,000 
22.17 	each year is for funding the County Veterans 
22.18 	Service Office grant program under Minnesota 
22.19 	Statutes, section 197.608.
22.20 	Veterans' Voices. $25,000 in fiscal year 2018 
22.21 	and $25,000 in fiscal year 2019 are for a grant 
22.22 	to the Association of Minnesota Public 
22.23 	Educational Radio Stations for statewide 
22.24 	programming to promote the Veterans' Voices 
22.25 	program. The Veterans' Voices program shall 
22.26 	educate and engage communities regarding 
22.27 	veterans' contributions, knowledge, skills, and 
22.28 	experiences with an emphasis on Korean War 
22.29 	veterans and Operation Desert Storm veterans. 
22.30 	These appropriations are from the Support Our 
22.31 	Troops account in the special revenue fund. 
22.32 	This is a onetime appropriation and is not 
22.33 	added to the base.
23.1 	Veterans Defense Project. $90,000 in fiscal 
23.2 	year 2018 and $85,000 in fiscal year 2019 are 
23.3 	for grants to the Veterans Defense Project. 
23.4 	The Veterans Defense Project must use the 
23.5 	grant money to support, through education, 
23.6 	outreach, and legal assistance, military 
23.7 	veterans who are involved with the criminal 
23.8 	justice system. These appropriations are from 
23.9 	the Support Our Troops account in the special 
23.10 	revenue fund. This is a onetime appropriation 
23.11 	and is not added to the base.
23.12 	Veterans Journey Home; Appropriation.
23.13 	$90,000 in fiscal year 2018 and $85,000 in 
23.14 	fiscal year 2019 are for a grant  to the Veterans 
23.15 	Journey Home. The Veterans Journey Home 
23.16 	must use the grant money to support the 
23.17 	development of new or rehabbed affordable 
23.18 	housing dedicated for low-to-moderate income 
23.19 	veterans and their families. These 
23.20 	appropriations are from the Support Our 
23.21 	Troops account in the special revenue fund. 
23.22 	This is a onetime appropriation and is not 
23.23 	added to the base.

23.24	Subd. 3.Veterans Homes
 		57,218,000
		57,218,000
	
23.25 	Veterans Homes Special Revenue Account. 
23.26 	The general fund appropriations made to the 
23.27 	department may be transferred to a veterans 
23.28 	homes special revenue account in the special 
23.29 	revenue fund in the same manner as other 
23.30 	receipts are deposited according to Minnesota 
23.31 	Statutes, section 198.34, and are appropriated 
23.32 	to the department for the operation of veterans 
23.33 	homes facilities and programs.
23.34 	Maximize Federal Reimbursements. The 
23.35 	department will seek opportunities to 
24.1 	maximize federal reimbursements of 
24.2 	Medicare-eligible expenses and will provide 
24.3 	annual reports to the commissioner of 
24.4 	management and budget on the federal 
24.5 	Medicare reimbursements received. 
24.6 	Contingent upon future federal Medicare 
24.7 	receipts, reductions to the homes' general fund 
24.8 	appropriation may be made.

24.924.10
	Sec. 38. MILITARY AFFAIRS; TRANSFER 
AUTHORITY
 					
24.11 	Of the funds transferred to maintenance of 
24.12 	training facilities in Laws 2015, chapter 77, 
24.13 	article 1, section 36, subdivision 4, $2,000,000 
24.14 	in fiscal year 2017 may be transferred to the 
24.15 	enlistment incentives appropriation to address 
24.16 	a projected fiscal year 2017 deficit in the 
24.17 	enlistment incentives program.

24.18 	Sec. 39. SAVINGS FROM INSURANCE OPT OUT; APPROPRIATION 
24.19 	REDUCTION FOR EXECUTIVE AGENCIES.
 24.20 	The commissioner of management and budget must reduce general fund appropriations 
24.21 	to executive agencies, including constitutional offices, for agency operations for the biennium 
24.22 	ending June 30, 2019, by $4,394,000 due to savings from permitting employees to opt out 
24.23 	of insurance coverage under the state employee group insurance coverage.
24.24 	If savings obtained through permitting employees to opt out of insurance coverage under 
24.25 	the state employee group insurance coverage yield savings in nongeneral funds other than 
24.26 	those established in the state constitution or protected by federal law, the commissioner of 
24.27 	management and budget may transfer the amount of savings to the general fund. The amount 
24.28 	transferred to the general fund from other funds reduces the required general fund reduction 
24.29 	in this section. Reductions made in 2019 must be reflected as reductions in agency base 
24.30 	budgets for fiscal years 2020 and 2021. The commissioner of management and budget must 
24.31 	report to the chairs and ranking minority members of the committees in the senate Finance 
24.32 	Committee and the house of representatives Ways and Means Committee regarding the 
24.33 	amount of reductions in spending by each agency under this section.

25.1 	Sec. 40. SAVINGS FROM INFORMATION TECHNOLOGY CONSOLIDATION 
25.2 	COMPLETION; APPROPRIATION REDUCTION FOR MN.IT.
 25.3 	The appropriation to the Office of MN.IT Services for the biennium ending June 30, 
25.4 	2019, is reduced by $3,000,000 due to savings on personnel costs resulting from efficiencies 
25.5 	achieved through completion of the executive branch information technology consolidation 
25.6 	required by Laws 2011, First Special Session chapter 10, article 4, section 7, as amended 
25.7 	by Laws 2013, chapter 134, section 29.
25.8 	If savings obtained through completion of information technology consolidation yield 
25.9 	savings in nongeneral funds other than those established in the state constitution or protected 
25.10 	by federal law, the chief information officer may transfer the amount of savings to the 
25.11 	general fund. The amount transferred to the general fund from other funds reduces the 
25.12 	required general fund reduction in this section. Reductions made in 2019 must be reflected 
25.13 	as reductions in agency base budgets for fiscal years 2020 and 2021.

25.14 	Sec. 41. APPROPRIATION CANCELLATIONS.
 25.15 	All unspent funds of the James Metzen Mighty Ducks Ice Center Development Act, 
25.16 	estimated to be $7,166,000, as provided in Minnesota Statutes, section 240A.085, under 
25.17 	Laws 2016, chapter 189, article 13, section 56, are canceled to the general fund on June 30, 
25.18 	2017.

25.19 	ARTICLE 2
25.20 	MISCELLANEOUS

25.21 	Section 1. Minnesota Statutes 2016, section 4.46, is amended to read:
25.22 	4.46 WASHINGTON OFFICE.
25.23 	The governor may appoint employees for the Washington, D.C., office of the state of 
25.24 	Minnesota and may prescribe their duties. In the operation of the office, the governor may 
25.25 	expend money appropriated by the legislature to the governor for promotional purposes in 
25.26 	the same manner as private persons, firms, corporations, and associations expend money 
25.27 	for promotional purposes. Promotional expenditures for food, lodging, or travel are not 
25.28 	governed by the travel rules of the commissioner of management and budget. An agency 
25.29 	may not transfer money to the governor for services provided by the governor or expenses 
25.30 	incurred in operating a Washington, D.C., office or for staff working on federal issues.

26.1 	Sec. 2. Minnesota Statutes 2016, section 6.481, subdivision 6, is amended to read:
26.2 		Subd. 6.Payments to state auditor. A county audited by the state auditor must pay the 
26.3 	state auditor for the costs and expenses of the audit. If the state auditor makes additional 
26.4 	examinations of a county whose audit is performed by a CPA firm, the county must pay the 
26.5 	auditor for the cost of these examinations. Payments must be deposited in the state auditor 
26.6 	enterprisegeneral fund.

26.7 	Sec. 3. Minnesota Statutes 2016, section 6.56, subdivision 2, is amended to read:
26.8 		Subd. 2.Billings by state auditor. Upon the examination of the books, records, accounts, 
26.9 	and affairs of any political subdivision, as provided by law, such political subdivision shall 
26.10 	be liable to the state for the total cost and expenses of such examination, including the 
26.11 	salaries paid to the examiners while actually engaged in making such examination. The 
26.12 	state auditor may bill such political subdivision periodically for service rendered and the 
26.13 	officials responsible for approving and paying claims are authorized to pay said bill promptly. 
26.14 	Said payments shall be without prejudice to any defense against said claims that may exist 
26.15 	or be asserted. The state auditor enterprisegeneral fund shall be credited with all collections 
26.16 	made for any such examinations, including interest payments made pursuant to subdivision 
26.17 	3.

26.18 	Sec. 4. Minnesota Statutes 2016, section 6.581, subdivision 4, is amended to read:
26.19 		Subd. 4.Reports to legislature. At least 30 days before implementing increased charges 
26.20 	for examinations, the state auditor must report the proposed increases to the chairs and 
26.21 	ranking minority members of the committees in the house of representatives and the senate 
26.22 	with jurisdiction over the budget of the state auditor. By January 15 of each odd-numbered 
26.23 	year, the state auditor must report to the chairs and ranking minority members of the 
26.24 	legislative committees and divisions with primary jurisdiction over the budget of the state 
26.25 	auditor a summary of the state auditor enterprise fund anticipated revenues, and expenditures 
26.26 	related to examinations for the biennium ending June 30 of that year. The report must also 
26.27 	include for the biennium the number of full-time equivalents paid by the fund related to the 
26.28 	examinations, any audit rate changes stated as a percentage, the number of audit reports 
26.29 	issued, and the number of counties audited.

26.30 	Sec. 5. [6.92] LITIGATION EXPENSES.
26.31 	(a) Unless funds are otherwise expressly provided by law for this purpose, all costs 
26.32 	incurred by the state auditor in preparing and asserting a civil claim or appeal, or in defending 
27.1 	against a civil claim or appeal, related to the proper exercise of the auditor's constitutionally 
27.2 	authorized core functions must be paid by the auditor's constitutional office division. Only 
27.3 	allocations made to the constitutional office division may be used to pay these costs. The 
27.4 	state auditor must report to the chairs and ranking minority members of the committees in 
27.5 	the house of representatives and the senate with jurisdiction over the Office of the State 
27.6 	Auditor by May 1, 2017, and January 1, 2018, and each January 1 thereafter, on the state 
27.7 	auditor's litigation expenses.  The report must list each lawsuit the state auditor has brought 
27.8 	or is defending, the grounds for each suit, the litigation expenses incurred since the previous 
27.9 	report under this section, and the projected expenses to complete the suit.
27.10 	(b) In complying with paragraph (a), the state auditor may not, directly or indirectly, 
27.11 	decrease allocations previously made to, transfer funds from, or otherwise reduce services 
27.12 	provided by any other division of the office.

27.13 	Sec. 6. [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR 
27.14 	REMODELING; LEGISLATIVE NOTICE AND REVIEW.
27.15 		Subdivision 1.Definition. As used in this section, "residential construction" means the 
27.16 	new construction or remodeling of any building subject to the Minnesota Residential Code.
27.17 		Subd. 2.Impact on housing cost; agency determination. An agency must determine 
27.18 	if implementation of a proposed rule, or any portion of a proposed rule, will, on average, 
27.19 	increase the cost of residential construction or remodeling by $1,000 or more per unit. The 
27.20 	agency must make this determination before the close of the hearing record. Upon request 
27.21 	of a party affected by the proposed rule, an administrative law judge must review and 
27.22 	approve or disapprove an agency's determination that any portion of a proposed rule will 
27.23 	increase the cost of a dwelling unit by $1,000 or more.
27.24 		Subd. 3.Notice to legislature; legislative approval. (a) If the agency determines that 
27.25 	the impact of a proposed rule meets or exceeds the cost threshold provided in subdivision 
27.26 	2, or if the administrative law judge separately confirms the cost of any portion of a rule 
27.27 	exceeds the cost threshold provided in subdivision 2, the agency must notify, in writing, 
27.28 	the chairs and ranking minority members of the policy committees of the house of 
27.29 	representatives and the senate with jurisdiction over the subject matter of the proposed rule 
27.30 	within ten days of the determination.
27.31 	(b) If a committee of either the house of representatives or senate with jurisdiction over 
27.32 	the subject matter of the proposed rule or a portion of a rule that meets or exceeds the 
27.33 	threshold in subdivision 2 votes to advise an agency that the rule should not be adopted as 
27.34 	proposed, the agency may not adopt the rule unless the rule is approved by a law enacted 
28.1 	after the vote of the committee. Section 14.126, subdivision 2, applies to a vote of a 
28.2 	committee under this subdivision.
28.3 		Subd. 4.Severability. If the agency or an administrative law judge determines that part 
28.4 	of a proposed rule meets or exceeds the threshold provided in subdivision 2, but that a 
28.5 	severable portion of the proposed rule does not meet or exceed that threshold, the agency 
28.6 	may proceed to adopt the severable portions of the proposed rule regardless of whether a 
28.7 	legislative committee has voted under subdivision 3 to advise an agency that the rule should 
28.8 	not be adopted as proposed.

28.9 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to 
28.10 	administrative rules proposed on or after that date.

28.11 	Sec. 7. Minnesota Statutes 2016, section 14.18, subdivision 1, is amended to read:
28.12 		Subdivision 1.Generally. Unless a later date is required by section 14.126 or other law 
28.13 	or is specified in the rule, a rule is effective after:
28.14 	(1) it has been subjected to all requirements described in sections 14.131 to 14.20and 
28.15 	five working days after;
28.16 	(2) the notice of adoption is published in the State Register unless a later date is required 
28.17 	by section 14.126 or other law or specified in the rule; and
28.18 	(3) it has been approved by a law enacted after publication of the notice of adoption.if 
28.19 	any of the following applies:
28.20 	(i) the rule is enacted without a specific authorization of rulemaking to enact rules to 
28.21 	implement a specific statute section;
28.22 	(ii) a sanction or penalty can be imposed for failure to comply with the rule; or
28.23 	(iii) the regulating agency has the authority to adjudicate a dispute with a regulated entity 
28.24 	about enforcement of or violation of the rule.
28.25 	If the rule adopted is the same as the proposed rule, publication may be made by 
28.26 	publishing notice in the State Register that the rule has been adopted as proposed and by 
28.27 	citing the prior publication. If the rule adopted differs from the proposed rule, the portions 
28.28 	of the adopted rule that differ from the proposed rule must be included in the notice of 
28.29 	adoption together with a citation to the prior State Register publication of the remainder of 
28.30 	the proposed rule. The nature of the modifications must be clear to a reasonable person 
28.31 	when the notice of adoption is considered together with the State Register publication of 
29.1 	the proposed rule, except that modifications may also be made that comply with the form 
29.2 	requirements of section 14.07, subdivision 7.
29.3 	If the agency omitted from the notice of proposed rule adoption the text of the proposed 
29.4 	rule, as permitted by section 14.14, subdivision 1a, paragraph (b), the chief administrative 
29.5 	law judge may provide that the notice of the adopted rule need not include the text of any 
29.6 	changes from the proposed rule. However, the notice of adoption must state in detail the 
29.7 	substance of the changes made from the proposed rule, and must state that a free copy of 
29.8 	the portion of the adopted rule that was the subject of the rulemaking proceeding, not 
29.9 	including any material adopted by reference as permitted by section 14.07, is available upon 
29.10 	request to the agency.

29.11 	Sec. 8. Minnesota Statutes 2016, section 14.27, is amended to read:
29.12 	14.27 PUBLICATION OF ADOPTED RULE; EFFECTIVE DATE.
29.13 	(a) Except as provided in paragraph (b), the rule is effective upon after publication of 
29.14 	the notice of adoption in the State Register in the same manner as provided for adopted 
29.15 	rules in section 14.18.
29.16 	(b) A rule is effective after publication of the notice of adoption in the State Register 
29.17 	and after approval by law in the same manner as provided for adopted rules in section 14.18, 
29.18 	if any of the following applies:
29.19 	(1) the rule is enacted without a specific authorization of rulemaking to enact rules to 
29.20 	implement a specific statute section;
29.21 	(2) a sanction or penalty can be imposed for failure to comply with the rule; or
29.22 	(3) the regulating agency has the authority to adjudicate a dispute with a regulated entity 
29.23 	about enforcement of or violation of the rule.

29.24 	EFFECTIVE DATE. This section is effective the day following final enactment and 
29.25 	applies to rules for which a notice of adoption is published on or after that date.

29.26 	Sec. 9. Minnesota Statutes 2016, section 14.389, subdivision 3, is amended to read:
29.27 		Subd. 3.Adoption. (a) The agency may modify a proposed rule if the modifications do 
29.28 	not result in a substantially different rule, as defined in section 14.05, subdivision 2, 
29.29 	paragraphs (b) and (c). If the final rule is identical to the rule originally published in the 
29.30 	State Register, the agency must publish a notice of adoption in the State Register. If the 
29.31 	final rule is different from the rule originally published in the State Register, the agency 
30.1 	must publish a copy of the changes in the State Register. The agency must also file a copy 
30.2 	of the rule with the governor. The rule is effectiveupon publication in the State Register.
30.3 	(b) Except as provided in paragraph (c), the rule is effective upon publication in the 
30.4 	State Register.
30.5 	(c) The rule is effective upon publication of the notice of adoption if it has been approved 
30.6 	by a law enacted after publication of the notice of adoption, if any of the following applies:
30.7 	(1) the rule is enacted without a specific authorization of rulemaking to enact rules to 
30.8 	implement a specific statute section;
30.9 	(2) a sanction or penalty can be imposed for failure to comply with the rule; or
30.10 	(3)  the regulating agency has the authority to adjudicate a dispute with a regulated entity 
30.11 	about enforcement of or violation of the rule.

30.12 	EFFECTIVE DATE. This section is effective the day following final enactment and 
30.13 	applies to rules for which a notice of adoption is published on or after that date.

30.14 	Sec. 10. Minnesota Statutes 2016, section 14.57, is amended to read:
30.15 	14.57 INITIATION; DECISION; AGREEMENT TO ARBITRATE.
30.16 	(a) An agency shall initiate a contested case proceeding when one is required by law. 
30.17 	Unless otherwise provided by law, An agency shall decide submit a contested case only to 
30.18 	the Office of Administrative Hearings for disposition in accordance with the contested case 
30.19 	procedures of the Administrative Procedure Act. Upon initiation of a contested case 
30.20 	proceeding, an agency may, by order, provide that the report or order of the administrative 
30.21 	law judge constitutes the final decision in the case.
30.22 	(b) As an alternative to initiating or continuing with a contested case proceeding, the 
30.23 	parties, subsequent to agency approval, may enter into a written agreement to submit the 
30.24 	issues raised to arbitration by an administrative law judge according to sections 572B.01
30.25 	to 572B.31.

30.26 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to contested 
30.27 	cases initiated on or after that date.

30.28 	Sec. 11. [14.605] AFFIRMATIVE DEFENSE.
30.29 	In a contested case or any other action to enforce a rule or to sanction or penalize a 
30.30 	person for violation of a rule, a person shall have an affirmative defense if the person shows 
31.1 	by a preponderance of the evidence that the cost for the person to comply with the rule 
31.2 	exceeds $50,000.

31.3 	EFFECTIVE DATE. This section is effective the day following final enactment and 
31.4 	applies to rules for which a notice of adoption is published on or after that date.

31.5 	Sec. 12. [16A.1282] TRANSFERS TO THE GOVERNOR.
31.6 	An agency shall not transfer money to the governor for services provided by the governor 
31.7 	or to reimburse expenses incurred by the governor.

31.8 	Sec. 13. Minnesota Statutes 2016, section 16A.90, is amended to read:
31.9 	16A.90 EMPLOYEE GAINSHARING SYSTEM.
31.10 		Subdivision 1.Commissioner must establish program. The commissioner shall establish 
31.11 	a program to provide onetime bonus compensation to state employees for efforts made to 
31.12 	reduce the costs of operating state government or for ways of providing better or more 
31.13 	efficient state services. The commissioner may authorize an executive branch appointing 
31.14 	authority to make a onetime award to an employee or group of employees whose suggestion 
31.15 	or involvement in a project is determined by the commissioner to have resulted in documented 
31.16 	cost-savings to the state. Before authorizing awards under this section, the commissioner 
31.17 	shall establish guidelines for the program including but not limited to:
31.18 	(1) the maximum award is ten percent of the documented savings in the first fiscal year 
31.19 	in which the savings are realized up to $50,000;
31.20 	(2) the award must may be paid in an amount up to $2,500 per employee per award from 
31.21 	the an appropriation to which the savings accrued the agency for operations that is not 
31.22 	otherwise designated for a specific purpose by law; and
31.23 	(3) employees whose primary job responsibility is to identify cost savings or ways of 
31.24 	providing better or more efficient state services are generally not eligible for bonus 
31.25 	compensation under this section except in extraordinary circumstances as defined by the 
31.26 	commissioner.
31.27 		Subd. 2.Biannual legislative report. No later than August 1, 2017, and biannually 
31.28 	thereafter, the commissioner must report to the chairs and ranking minority members of the 
31.29 	committees of the house of representatives and the senate with jurisdiction over Minnesota 
31.30 	Management and Budget on the status of the program required by this section. The report 
31.31 	must detail:
32.1 	(1) the specific program guidelines established by the commissioner as required by 
32.2 	subdivision 1, if the guidelines have not been described in a previous report;
32.3 	(2) any proposed modifications to the established guidelines under consideration by the 
32.4 	commissioner, including the reason for the proposed modifications;
32.5 	(3) the methods used by the commissioner to promote the program to state employees, 
32.6 	if the methods have not been described in a previous report;
32.7 	(4) a summary of the results of the program that includes the following, categorized by 
32.8 	agency:
32.9 	(i) the number of state employees whose suggestions or involvement in a project were 
32.10 	considered for possible bonus compensation, and a description of each suggestion or project 
32.11 	that was considered;
32.12 	(ii) the total amount of bonus compensation actually awarded, itemized by each suggestion 
32.13 	or project that resulted in an award and the amount awarded for that suggestion or project; 
32.14 	and
32.15 	(iii) the total amount of documented cost-savings that accrued to the agency as a result 
32.16 	of each suggestion or project for which bonus compensation was granted; and
32.17 	(5) any recommendations for legislation that, in the judgment of the commissioner, 
32.18 	would improve the effectiveness of the bonus compensation program established by this 
32.19 	section or which would otherwise increase opportunities for state employees to actively 
32.20 	participate in the development and implementation of strategies for reducing the costs of 
32.21 	operating state government or for providing better or more efficient state services.

32.22 	Sec. 14. Minnesota Statutes 2016, section 16B.055, subdivision 1, is amended to read:
32.23 		Subdivision 1.Federal Assistive Technology Act. (a) The Department of Administration 
32.24 	is designated as the lead agency to carry out all the responsibilities under the Assistive 
32.25 	Technology Act of 1998, as provided by Public Law 108-364, as amended. The Minnesota 
32.26 	Assistive Technology Advisory Council is established to fulfill the responsibilities required 
32.27 	by the Assistive Technology Act, as provided by Public Law 108-364, as amended. Because 
32.28 	the existence of this council is required by federal law, this council does not expire.
32.29 	(b) Except as provided in paragraph (c), the governor shall appoint the membership of 
32.30 	the council as required by the Assistive Technology Act of 1998, as provided by Public 
32.31 	Law 108-364, as amended. After the governor has completed the appointments required by 
32.32 	this subdivision, the commissioner of administration, or the commissioner's designee, shall 
33.1 	convene the first meeting of the council following the appointments. Members shall serve 
33.2 	two-year terms commencing July 1 of each odd-numbered year, and receive the compensation 
33.3 	specified by the Assistive Technology Act of 1998, as provided by Public Law 108-364, as 
33.4 	amended. The members of the council shall select their chair at the first meeting following 
33.5 	their appointment.
33.6 	(c) After consulting with the appropriate commissioner, the commissioner of 
33.7 	administration shall appoint a representative from:
33.8 	(1) State Services for the Blind who has assistive technology expertise;
33.9 	(2) vocational rehabilitation services who has assistive technology expertise;
33.10 	(3) the Workforce Development Council; and
33.11 	(4) the Department of Education who has assistive technology expertise.

33.12 	Sec. 15. Minnesota Statutes 2016, section 16B.371, is amended to read:
33.13 	16B.371 ASSISTANCE TO SMALL AGENCIES.
33.14 	(a) The commissioner may provide administrative support services to small agencies. 
33.15 	To promote efficiency and cost-effective use of state resources, and to improve financial 
33.16 	controls, the commissioner may require a small agency to receive administrative support 
33.17 	services through the Department of Administration or through another agency designated 
33.18 	by the commissioner. Services subject to this section include finance, accounting, payroll, 
33.19 	purchasing, human resources, and other services designated by the commissioner. The 
33.20 	commissioner may determine what constitutes a small agency for purposes of this section. 
33.21 	The commissioner, in consultation with the commissioner of management and budget and 
33.22 	small agencies, shall evaluate small agencies' needs for administrative support services. If 
33.23 	the commissioner provides administrative support services to a small agency, the 
33.24 	commissioner must enter into a service level agreement with the agency, specifying the 
33.25 	services to be provided and the costs and anticipated outcomes of the services.
33.26 	(b) The Minnesota Council on Latino Affairs, the Council for Minnesotans of African 
33.27 	Heritage, the Council on Asian-Pacific Minnesotans, the Indian Affairs Council, and the 
33.28 	Minnesota State Council on Disability mustmay use the services specified in paragraph 
33.29 	(a).
33.30 	(c) The commissioner of administration may must  assess agencies for services it provides 
33.31 	under this section. The amounts assessed are appropriated to the commissioner.
34.1 	(d) For agencies covered in this section, the commissioner has the authority to require 
34.2 	the agency to comply with applicable state finance, accounting, payroll, purchasing, and 
34.3 	human resources policies. The agencies served retain the ownership and responsibility for 
34.4 	spending decisions and for ongoing implementation of appropriate business operations.

34.5 	Sec. 16. Minnesota Statutes 2016, section 16B.4805, subdivision 2, is amended to read:
34.6 		Subd. 2.Reimbursement for making reasonable accommodation. The commissioner 
34.7 	of administration shall reimburse state agencies for up to 50 percent of the cost of expenses 
34.8 	incurred in making reasonable accommodations eligible for reimbursement for agency 
34.9 	employees and applicants for employment to the extent that funds are available in the 
34.10 	accommodation account established under subdivision 3 for this purpose.

34.11 	Sec. 17. Minnesota Statutes 2016, section 16B.4805, subdivision 4, is amended to read:
34.12 		Subd. 4.Administration costs. The commissioner may use up to 15 percent$5,000 of 
34.13 	the biennial appropriation for administration of this section.

34.14 	Sec. 18. Minnesota Statutes 2016, section 16E.0466, is amended to read:
34.15 	16E.0466 STATE AGENCY TECHNOLOGY PROJECTS.
34.16 		Subdivision 1.Consultation required. (a) Every state agency with an information or 
34.17 	telecommunications project must consult with the Office of MN.IT Services to determine 
34.18 	the information technology cost of the project. Upon agreement between the commissioner 
34.19 	of a particular agency and the chief information officer, the agency must transfer the 
34.20 	information technology cost portion of the project to the Office of MN.IT Services. Service 
34.21 	level agreements must document all project-related transfers under this section. Those 
34.22 	agencies specified in section 16E.016, paragraph (d), are exempt from the requirements of 
34.23 	this section.
34.24 	(b) Notwithstanding section 16A.28, subdivision 3, any unexpended operating balance 
34.25 	appropriated to a state agency may be transferred to the information and telecommunications 
34.26 	technology systems and services account for the information technology cost of a specific 
34.27 	project, subject to the review of the Legislative Advisory Commission, under section 16E.21, 
34.28 	subdivision 3.
34.29 		Subd. 2.Legislative report. No later than October 1, 2017, and quarterly thereafter, the 
34.30 	state chief information officer must submit a comprehensive project portfolio report to the 
34.31 	chairs and ranking minority members of the house of representatives and senate committees 
35.1 	with jurisdiction over state government finance on projects requiring consultation under 
35.2 	subdivision 1. The report must itemize:
35.3 	(1) each project presented to the office for consultation in the time since the last report;
35.4 	(2) the information technology cost associated with the project, including the information 
35.5 	technology cost as a percentage of the project's complete budget;
35.6 	(3) the status of the information technology components of the project's development;
35.7 	(4) the date the information technology components of the project are expected to be 
35.8 	completed; and
35.9 	(5) the projected costs for ongoing support and maintenance of the information technology 
35.10 	components after the project is complete.

35.11 	Sec. 19. Minnesota Statutes 2016, section 43A.17, subdivision 11, is amended to read:
35.12 		Subd. 11.Severance pay for certain employees. (a) For purposes of this subdivision, 
35.13 	"highly compensated employee" means an employee of the state whose estimated annual 
35.14 	compensation is greater than 60 percent of the governor's annual salary, and who is not 
35.15 	covered by a collective bargaining agreement negotiated under chapter 179A or a 
35.16 	compensation plan authorized under section 43A.18, subdivision 3a.
35.17 	(b) Severance pay for a highly compensated employee includes benefits or compensation 
35.18 	with a quantifiable monetary value, that are provided for an employee upon termination of 
35.19 	employment and are not part of the employee's annual wages and benefits and are not 
35.20 	specifically excluded by this subdivision. Severance pay does not include payments for 
35.21 	accumulated vacation, accumulated sick leave, and accumulated sick leave liquidated to 
35.22 	cover the cost of group term insurance. Severance pay for a highly compensated employee 
35.23 	does not include payments of periodic contributions by an employer toward premiums for 
35.24 	group insurance policies. The severance pay for a highly compensated employee must be 
35.25 	excluded from retirement deductions and from any calculations of retirement benefits. 
35.26 	Severance pay for a highly compensated employee must be paid in a manner mutually 
35.27 	agreeable to the employee and the employee's appointing authority over a period not to 
35.28 	exceed five years from retirement or termination of employment. If a retired or terminated 
35.29 	employee dies before all or a portion of the severance pay has been disbursed, the balance 
35.30 	due must be paid to a named beneficiary or, lacking one, to the deceased's estate. Except 
35.31 	as provided in paragraph (c), severance pay provided for a highly compensated employee 
35.32 	leaving employment may not exceed an amount equivalent to six months of pay the lesser 
35.33 	of:
36.1 	(1) six months pay; or
36.2 	(2) the highly compensated employee's regular rate of pay multiplied by 35 percent of 
36.3 	the highly compensated employee's accumulated but unused sick leave hours.
36.4 	(c) Severance pay for a highly compensated employee may exceed an amount equivalent 
36.5 	to six months of pay the limit prescribed in paragraph (b) if the severance pay is part of an 
36.6 	early retirement incentive offer approved by the state and the same early retirement incentive 
36.7 	offer is also made available to all other employees of the appointing authority who meet 
36.8 	generally defined criteria relative to age or length of service.
36.9 	(d) An appointing authority may make severance payments to a highly compensated 
36.10 	employee, up to the limits prescribed in this subdivision, only if doing so is authorized by 
36.11 	a compensation plan under section 43A.18 that governs the employee, provided that the 
36.12 	following highly compensated employees are not eligible for severance pay:
36.13 	(1) a commissioner, deputy commissioner, or assistant commissioner of any state 
36.14 	department or agency as listed in section 15.01 or 15.06, including the state chief information 
36.15 	officer; and
36.16 	(2) any unclassified employee who is also a public official, as defined in section 10A.01, 
36.17 	subdivision 35.
36.18 	(e) Severance pay shall not be paid to a highly compensated employee who has been 
36.19 	employed by the appointing authority for less than six months or who voluntarily terminates 
36.20 	employment.

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

36.22 	Sec. 20. Minnesota Statutes 2016, section 43A.24, is amended by adding a subdivision to 
36.23 	read:
36.24 		Subd. 1a.Opt out. (a) An individual eligible for state-paid hospital, medical, and dental 
36.25 	benefits under this section has the right to decline those benefits, provided the individual 
36.26 	declining the benefits can prove health insurance coverage from another source. Any 
36.27 	individual declining benefits must do so in writing, signed and dated, on a form provided 
36.28 	by the commissioner.
36.29 	(b) The commissioner must create, and make available in hard copy and online a form 
36.30 	for individuals to use in declining state-paid hospital, medical, and dental benefits. The form 
36.31 	must, at a minimum, include notice to the declining individual of the next available 
36.32 	opportunity and procedure to re-enroll in the benefits.

37.1 	Sec. 21. Minnesota Statutes 2016, section 155A.23, is amended by adding a subdivision 
37.2 	to read:
37.3 		Subd. 9a.Salon manager. A "salon manager" is any person who is a practitioner and 
37.4 	licensed to serve as a designated licensed salon manager, as defined in section 155A.23, 
37.5 	subdivision 15.

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

37.7 	Sec. 22. Minnesota Statutes 2016, section 155A.23, subdivision 10, is amended to read:
37.8 		Subd. 10.School. A "school" is a place where any person operates and maintains a class 
37.9 	to teach provides training on regulated cosmetology to the public for compensation services 
37.10 	requiring licensure. "School" does not include a place where the only teaching of cosmetology 
37.11 	is done by a licensed cosmetologist as part of a community education program of less than 
37.12 	ten hours duration, provided that the program does not permit practice on persons other 
37.13 	than students in the program, and provided that the program is intended solely for the 
37.14 	self-improvement of the students and not as preparation for professional practice. continuing 
37.15 	education course required for license renewal, additional training offered to licensed 
37.16 	individuals, or training intended solely for the self-improvement of the attendees and not 
37.17 	as preparation for professional practice.

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

37.19 	Sec. 23. Minnesota Statutes 2016, section 155A.23, subdivision 15, is amended to read:
37.20 		Subd. 15.Designated licensed salon manager. A "designated licensed salon manager" 
37.21 	is a licensed salon manager designated by a salon owner and registered with the board, who 
37.22 	is responsible with the salon owner for salon and practitioner compliance.

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

37.24 	Sec. 24. Minnesota Statutes 2016, section 155A.23, subdivision 16, is amended to read:
37.25 		Subd. 16.School manager. A "school manager" is a cosmetologist who is a salon 
37.26 	manager and who has a school manager license. A school manager must maintain an active 
37.27 	salon manager's license person who is licensed to serve as a designated school manager, as 
37.28 	defined in section 155A.23, subdivision 17.

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

38.1 	Sec. 25. Minnesota Statutes 2016, section 155A.29, subdivision 1, is amended to read:
38.2 		Subdivision 1.Licensing. A person must not offer cosmetology services for compensation 
38.3 	unless the services are provided by a licensee in a licensed salon or as otherwise provided 
38.4 	in this section. Each salon must be licensed as a cosmetology salon, a nail salon, esthetician 
38.5 	salon, advanced practice esthetician salon, or eyelash extension salon. A salon may hold 
38.6 	more than one type of salon license.

38.7 	Sec. 26. Minnesota Statutes 2016, section 155A.29, subdivision 2, is amended to read:
38.8 		Subd. 2.Requirements.  The conditions and process by which a salon is licensed shall 
38.9 	be established by the board by rule. In addition to those requirements, no license shall be 
38.10 	issued unless the board first determines that the conditions in clauses (1) to (5) have been 
38.11 	satisfied:
38.12 	(1) compliance with all local and state laws, particularly relating to matters of infection 
38.13 	control, health, and safety;
38.14 	(2) the employment appointment of a designated licensed salon manager, as defined in 
38.15 	section 155A.23, subdivision 8 15;
38.16 	(3) if applicable, evidence of compliance with workers' compensation section 176.182; 
38.17 	and
38.18 	(4) evidence of continued professional liability insurance coverage of at least $25,000 
38.19 	for each claim and $50,000 total coverage for each policy year for each operator.

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

38.21 	Sec. 27. Minnesota Statutes 2016, section 155A.30, subdivision 2, is amended to read:
38.22 		Subd. 2.Standards. The board shall by rule establish minimum standards of course 
38.23 	content and length specific to the educational preparation prerequisite to testing and 
38.24 	practitioner licensing as cosmetologist, esthetician, and nail technician.

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

38.26 	Sec. 28. Minnesota Statutes 2016, section 155A.30, subdivision 5, is amended to read:
38.27 		Subd. 5.Conditions precedent to issuance. A license must not be issued unless the 
38.28 	board first determines that the applicant has met the requirements in clauses (1) to (8) (9):
38.29 	(1) the applicant must have a sound financial condition with sufficient resources available 
38.30 	to meet the school's financial obligations; to refund all tuition and other charges, within a 
39.1 	reasonable period of time, in the event of dissolution of the school or in the event of any 
39.2 	justifiable claims for refund against the school; to provide adequate service to its students 
39.3 	and prospective students; and to maintain proper use and support of the school;
39.4 	(2) the applicant must have satisfactory training facilities with sufficient tools and 
39.5 	equipment and the necessary number of work stations to adequately train the students 
39.6 	currently enrolled, and those proposed to be enrolled;
39.7 	(3) the applicant must employ a sufficient number of qualified instructors trained by 
39.8 	experience and education to give the training contemplated;
39.9 	(4) the premises and conditions under which the students work and study must be sanitary, 
39.10 	healthful, and safe according to modern standards;
39.11 	(5) each occupational course or program of instruction or study must be of such quality 
39.12 	and content as to provide education and training that will adequately prepare enrolled 
39.13 	students for testing, licensing, and entry level positions as a cosmetologist, esthetician, or 
39.14 	nail technician;
39.15 	(6) the school must have coverage by professional liability insurance of at least $25,000 
39.16 	per incident and an accumulation of $150,000 for each premium year;
39.17 	(7) the applicant shall provide evidence of the school's compliance with section 176.182;
39.18 	(8) the applicant, except the state and its political subdivisions as described in section 
39.19 	471.617 13.02, subdivision 1 11, shall must file with the board a continuous corporate surety 
39.20 	bond in the amount of no less than ten percent of the preceding year's gross income from 
39.21 	student tuition, fees, and other required institutional charges, but in no event less than 
39.22 	$10,000, conditioned upon the faithful performance of all contracts and agreements with 
39.23 	students made by the applicant. New schools must base the bond amount on the anticipated 
39.24 	gross income from student tuition, fees, and other required institutional charges for the third 
39.25 	year of operation, but in no event less than $10,000. The applicant must compute the amount 
39.26 	of the surety bond and verify that the amount of the surety bond complies with this 
39.27 	subdivision. The bond shall run to the state of Minnesota board and to any person who may 
39.28 	have a cause of action against the applicant arising at any time after the bond is filed and 
39.29 	before it is canceled for breach of any contract or agreement made by the applicant with 
39.30 	any student. The aggregate liability of the surety for all breaches of the conditions of the 
39.31 	bond shall not exceed $10,000. The surety of the bond may cancel it upon giving 60 days' 
39.32 	notice in writing to the board and shall be relieved of liability for any breach of condition 
39.33 	occurring after the effective date of cancellation; and
40.1 	(9) the applicant must, at all times during the term of the license, employ appoint a 
40.2 	designated licensed school manager who maintains a cosmetology salon manager license.

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

40.4 	Sec. 29. Minnesota Statutes 2016, section 179A.20, is amended by adding a subdivision 
40.5 	to read:
40.6 		Subd. 2b.Limited by appropriation. A public employer may not contract to pay more 
40.7 	to employees in compensation and benefits in a biennium than is permitted under an approved 
40.8 	spending plan as provided in section 16A.14.

40.9 	Sec. 30. Minnesota Statutes 2016, section 190.19, subdivision 2, is amended to read:
40.10 		Subd. 2.Uses. (a) Money appropriated from the Minnesota "Support Our Troops" account 
40.11 	to the Department of Military Affairs may be used for:
40.12 	(1) grants directly to eligible individuals;
40.13 	(2) grants to one or more eligible foundations for the purpose of making grants to eligible 
40.14 	individuals, as provided in this section;
40.15 	(3) veterans' services; or
40.16 	(4) grants to family readiness groups chartered by the adjutant general; or
40.17 	(5) up to $500,000 per fiscal year for bonus programs as defined in section 192.501.
40.18 	(b) As used in paragraph (a), the term "eligible individual" includes any person who is:
40.19 	(1) a member in good standing of the Minnesota National Guard or a reserve unit based 
40.20 	in Minnesota who has been called to active service as defined in section 190.05, subdivision 
40.21 	5;
40.22 	(2) a Minnesota resident who is a member of a military reserve unit not based in 
40.23 	Minnesota, if the member is called to active service as defined in section 190.05, subdivision 
40.24 	5;
40.25 	(3) any other Minnesota resident performing active service for any branch of the military 
40.26 	of the United States;
40.27 	(4) a person who honorably served in one of the capacities listed in clause (1), (2), or 
40.28 	(3) who has current financial needs directly related to that service; and
40.29 	(5) a member of the immediate family of an individual identified in clause (1), (2), (3), 
40.30 	or (4). For purposes of this clause, "immediate family" means the individual's spouse and 
41.1 	minor children and, if they are dependents of the member of the military, the member's 
41.2 	parents, grandparents, siblings, stepchildren, and adult children.
41.3 	(c) As used in paragraph (a), the term "eligible foundation" includes any organization 
41.4 	that:
41.5 	(1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code;
41.6 	(2) has articles of incorporation under chapter 317A specifying the purpose of the 
41.7 	organization as including the provision of financial assistance to members of the Minnesota 
41.8 	National Guard and other United States armed forces reserves and their families and 
41.9 	survivors; and
41.10 	(3) agrees in writing to distribute any grant money received from the adjutant general 
41.11 	under this section to eligible individuals as defined in this section and in accordance with 
41.12 	any written policies and rules the adjutant general may impose as conditions of the grant to 
41.13 	the foundation.
41.14 	(d) The maximum grant awarded to an eligible individual under paragraph (a) in a 
41.15 	calendar year with funds from the Minnesota "Support Our Troops" account, either through 
41.16 	an eligible institution or directly from the adjutant general, may not exceed $2,000 $4,000.

41.17 	Sec. 31. Minnesota Statutes 2016, section 190.19, subdivision 2a, is amended to read:
41.18 		Subd. 2a.Uses; veterans. (a) Money appropriated to the Department of Veterans Affairs 
41.19 	from the Minnesota "Support Our Troops" account may be used for:
41.20 	(1) grants to veterans service organizations;
41.21 	(2) outreach to underserved veterans;
41.22 	(3) providing services and programs for veterans and their families;
41.23 	(4) transfers to the vehicle services account for Gold Star license plates under section 
41.24 	168.1253;
41.25 	(5) grants of up to $100,000 to any organization approved by the commissioner of 
41.26 	veterans affairs for the purpose of supporting and improving the lives of veterans and their 
41.27 	families; and
41.28 	(6) grants to an eligible foundation;
41.29 	(7) the agency's uncompensated burial costs for eligible dependents to whom the 
41.30 	commissioner grants a no-fee or reduced-fee burial in the state's veteran cemeteries pursuant 
41.31 	to section 197.236, subdivision 9, paragraph (b); and
42.1 	(8) grants of up to $3,000 to a disabled veteran to construct disability access 
42.2 	improvements in or around the disabled veteran's residence.
42.3 	(b) For purposes of this subdivision, "eligible foundation" includes any organization 
42.4 	that:
42.5 	(1) is a tax-exempt organization under section 501(c) of the Internal Revenue Code; and
42.6 	(2) is a nonprofit corporation under chapter 317A and the organization's articles of 
42.7 	incorporation specify that a purpose of the organization includes: (i) providing assistance 
42.8 	to veterans and their families; or (ii) enhancing the lives of veterans and their families.

42.9 	Sec. 32. Minnesota Statutes 2016, section 197.236, subdivision 9, is amended to read:
42.10 		Subd. 9.Burial fees. (a) The commissioner of veterans affairs shall establish a fee 
42.11 	schedule, which may be adjusted from time to time, for the interment of eligible spouses 
42.12 	and dependent children. The fees shall cover as nearly as practicable the actual costs of 
42.13 	interment, excluding the value of the plot.
42.14 	(b) Upon application, the commissioner may waive or reduce the burial fee in the case 
42.15 	of for an indigent eligible person. The commissioner shall develop a policy, eligibility 
42.16 	standards, and application form for requests to waive or reduce the burial fee to indigent 
42.17 	eligible applicants.
42.18 	(c) No plot or interment fees may be charged for the burial of service members who die 
42.19 	on active duty or eligible veterans, as defined in United States Code, title 38, section 101, 
42.20 	paragraph (2).

42.21 	Sec. 33. Minnesota Statutes 2016, section 240.15, subdivision 6, is amended to read:
42.22 		Subd. 6.Disposition of proceeds; account. The commission shall distribute all money 
42.23 	received under this section, and, except as provided otherwise by section 240.131, all money 
42.24 	received from license fees, regulatory fees, and fines it collects, according to this subdivision. 
42.25 	All money designated for deposit in the Minnesota breeders fund must be paid into that 
42.26 	fund for distribution under section 240.18 except that all money generated by simulcasts 
42.27 	must be distributed as provided in section 240.18, subdivisions 2, paragraph (d), clauses 
42.28 	(1), (2), and (3); and 3. Revenue from an admissions tax imposed under subdivision 1 must 
42.29 	be paid to the local unit of government at whose request it was imposed, at times and in a 
42.30 	manner the commission determines. Taxes received under this section must be paid to the 
42.31 	commissioner of management and budget for deposit in the general fund. All revenues from 
42.32 	licenses and other fees imposed by the commission must be deposited in the state treasury 
43.1 	and credited to a racing and card playing regulation account in the special revenue fund. 
43.2 	Receipts in this account are available for the operations of the commission up to the amount 
43.3 	authorized in biennial appropriations from the legislature. If a fiscal biennium ends without 
43.4 	the enactment of an appropriation to the commission for the following biennium, receipts 
43.5 	in this account are annually appropriated to the commission for the operations of the 
43.6 	commission up to the amount authorized in the second year of the most recently enacted 
43.7 	biennial appropriation, until a biennial appropriation is enacted.

43.8 	Sec. 34. Minnesota Statutes 2016, section 240.155, subdivision 1, is amended to read:
43.9 		Subdivision 1.Reimbursement account credit. Money received by the commission as 
43.10 	reimbursement for the costs of services provided by veterinarians, stewards, and medical 
43.11 	testing of horses, and fees received by the commission in the form of fees for regulatory 
43.12 	services must be deposited in the state treasury and credited to a racing reimbursement 
43.13 	account in the special revenue fund, except as provided under subdivision 2. Receipts are 
43.14 	appropriated, within the meaning of article XI, section 1, of the Minnesota Constitution, to 
43.15 	the commission to pay the costs of providing the services and all other costs necessary to 
43.16 	allow the commission to fulfill its regulatory oversight duties required by chapter 240 and 
43.17 	commission rule. If the major appropriation bills needed to finance state government are 
43.18 	not enacted by the beginning of a fiscal biennium, the commission shall continue operations 
43.19 	as required by chapter 240 and commission rule.

43.20 	Sec. 35. [240.1561] APPROPRIATION FOR FUNCTIONS SUPPORTING ONGOING 
43.21 	OPERATION OF THE RACING COMMISSION.
43.22 	If, by July 1 of an odd-numbered year, legislation has not been enacted to appropriate 
43.23 	money for the next biennium to the commissioner of management and budget for central 
43.24 	accounting, procurement, payroll, and human resources functions, amounts necessary to 
43.25 	operate those functions associated with operation of the Racing Commission under chapter 
43.26 	240 are appropriated for the next biennium from the general fund to the commissioner of 
43.27 	management and budget. As necessary, the commissioner may transfer a portion of this 
43.28 	appropriation to other state agencies to support carrying out these functions. Any subsequent 
43.29 	appropriation to the commissioner of management and budget for a biennium in which this 
43.30 	section has been applied shall supersede and replace the funding authorized in this section.

43.31 	Sec. 36. Minnesota Statutes 2016, section 240A.09, is amended to read:
43.32 	240A.09 PLAN DEVELOPMENT; CRITERIA.
44.1 	The Minnesota Amateur Sports Commission shall develop a plan to promote the 
44.2 	development of proposals for new statewide public ice facilities including proposals for ice 
44.3 	centers and matching grants based on the criteria in this section.
44.4 	(a) For ice center proposals, the commission will give priority to proposals that come 
44.5 	from more than one local government unit. Institutions of higher education are not eligible 
44.6 	to receive a grant.
44.7 	(b) The commission must give priority to grant applications for indoor air quality 
44.8 	improvements and projects that eliminate R-22. For purposes of this section:
44.9 	(1) "indoor air quality improvements" means: (i) renovation or replacement of heating, 
44.10 	ventilating, and air conditioning systems in existing indoor ice arenas whose ice resurfacing 
44.11 	and ice edging equipment are not powered by electricity in order to reduce concentrations 
44.12 	of carbon monoxide and nitrogen dioxide; and (ii) acquisition of zero-emission ice resurfacing 
44.13 	and ice edging equipment. The new or renovated systems may include continuous electronic 
44.14 	air monitoring devices to automatically activate the ventilation systems when the 
44.15 	concentration of carbon monoxide or nitrogen dioxide reaches a predetermined level; and
44.16 	(2) "projects that eliminate R-22," means replacement of ice-making systems in existing 
44.17 	public facilities that use R-22 as a refrigerant, with systems that use alternative 
44.18 	non-ozone-depleting refrigerants.
44.19 	(c) In the metropolitan area as defined in section 473.121, subdivision 2, the commission 
44.20 	is encouraged to give priority to the following proposals:
44.21 	(1) proposals for construction of two or more ice sheets in a single new facility;
44.22 	(2) proposals for construction of an additional sheet of ice at an existing ice center;
44.23 	(3) proposals for construction of a new, single sheet of ice as part of a sports complex 
44.24 	with multiple sports facilities; and
44.25 	(4) proposals for construction of a new, single sheet of ice that will be expanded to a 
44.26 	two-sheet facility in the future.
44.27 	(d) The commission shall administer a site selection process for the ice centers. The 
44.28 	commission shall invite proposals from cities or counties or consortia of cities. A proposal 
44.29 	for an ice center must include matching contributions including in-kind contributions of 
44.30 	land, access roadways and access roadway improvements, and necessary utility services, 
44.31 	landscaping, and parking.
45.1 	(e) Proposals for ice centers and matching grants must provide for meeting the demand 
45.2 	for ice time for female groups by offering up to 50 percent of prime ice time, as needed, to 
45.3 	female groups. For purposes of this section, prime ice time means the hours of 4:00 p.m. 
45.4 	to 10:00 p.m. Monday to Friday and 9:00 a.m. to 8:00 p.m. on Saturdays and Sundays.
45.5 	(f) The location for all proposed facilities must be in areas of maximum demonstrated 
45.6 	interest and must maximize accessibility to an arterial highway.
45.7 	(g) To the extent possible, all proposed facilities must be dispersed equitably, must be 
45.8 	located to maximize potential for full utilization and profitable operation, and must 
45.9 	accommodate noncompetitive family and community skating for all ages.
45.10 	(h) The commission may also use the money to upgrade current facilities, purchase girls' 
45.11 	ice time, or conduct amateur women's hockey and other ice sport tournaments.
45.12 	(i) To the extent possible, 50 percent of all grants must be awarded to communities in 
45.13 	greater Minnesota.
45.14 	(j) To the extent possible, technical assistance shall be provided to Minnesota 
45.15 	communities by the commission on ice arena planning, design, and operation, including the 
45.16 	marketing of ice time and on projects described in paragraph (b).
45.17 	(k) A grant for new facilities may not exceed $250,000.
45.18 	(l) The commission may make grants for rehabilitation and renovation. A rehabilitation 
45.19 	or renovation grant for air quality may not exceed $200,000 and a rehabilitation or renovation 
45.20 	grant for R-22 elimination may not exceed $50,000 $250,000 for indirect cooling systems 
45.21 	and may not exceed $400,000 $500,000 for direct cooling systems. Priority must be given 
45.22 	to grant applications for indoor air quality improvements, including zero emission ice 
45.23 	resurfacing equipment, and for projects that eliminate R-22.
45.24 	(m) Grant money may be used for ice centers designed for sports other than hockey.
45.25 	(n) Grant money may be used to upgrade existing facilities to comply with the bleacher 
45.26 	safety requirements of section 326B.112.

45.27 	Sec. 37. Minnesota Statutes 2016, section 349A.08, subdivision 2, is amended to read:
45.28 		Subd. 2.Prizes not assignable. A prize in the state lottery is not assignable except as 
45.29 	provided in subdivision 3 and except that:
45.30 	(1) if a prize winner dies before the prize is paid, the director shall pay the prize to the 
45.31 	prize winner's estate; and
46.1 	(2) the director may pay a prize to a person other than the winner of that prize under an 
46.2 	appropriate court order.

46.3 	Sec. 38. Minnesota Statutes 2016, section 349A.10, subdivision 6, is amended to read:
46.4 		Subd. 6.Budget; plans. (a) The director shall prepare and submit a biennial budget plan 
46.5 	to the commissioner of management and budget. The governor shall recommend the 
46.6 	maximum amount available for the lottery in the budget the governor submits to the 
46.7 	legislature under section 16A.11. The maximum amount available to the lottery for operating 
46.8 	expenses and capital expenditures shall be determined by law. In addition, the director shall 
46.9 	appear at least once each fiscal year before the senate and house of representatives committees 
46.10 	having jurisdiction over gambling policy to present and explain the lottery's plans for future 
46.11 	games and the related advertising and promotions and spending plans for the next fiscal 
46.12 	year.
46.13 	(b) For purposes of this section, operating expenses shall not include:
46.14 	(1) expenses that are a direct function of lottery sales, which include the cost of lottery 
46.15 	prizes, amounts paid to lottery retailers as sales commissions or other compensation, amounts 
46.16 	paid to produce and deliver scratch lottery games, and amounts paid to an outside vendor 
46.17 	to operate and maintain an online gaming system. In addition, the director shall appear at 
46.18 	least once each fiscal year before the senate and house of representatives committees having 
46.19 	jurisdiction over gambling policy to present and explain the lottery's plans for future games 
46.20 	and the related advertising and promotions and spending plans for the next fiscal year.; and
46.21 	(2) expenses related solely to the noncash year-end adjustment required for government 
46.22 	agencies to adjust the net actuarially determined pension liability which includes deferred 
46.23 	inflows, deferred outflows, noncash pension expense, unrestricted net deficit, and net pension 
46.24 	liability, in accordance with Statement 68 of the Governmental Accounting Standards Board.

46.25 	Sec. 39. Laws 2016, chapter 127, section 8, is amended to read:
46.26 	Sec. 8. EFFECTIVE DATE; APPLICATION.
 46.27 	Sections 1 to 7 are effective the day following final enactment. With respect to eyelash 
46.28 	technicians, the Board of Cosmetologist Examiners must not enforce sections 1 to 7 until 
46.29 	July 1, 2017 February 1, 2018. Any educational or training requirements developed by the 
46.30 	board regarding eyelash technicians must be 14 hours.

47.1 	Sec. 40. TRANSITION.
 47.2 	Notwithstanding any law to the contrary, receipts received by the state auditor on or 
47.3 	after July 1, 2017, from examinations conducted by the state auditor under Minnesota 
47.4 	Statutes, chapter 6, must be credited to the general fund. Amounts in the state auditor 
47.5 	enterprise fund at the end of fiscal year 2017 are transferred to the general fund.

47.6 	Sec. 41. ADVISORY TASK FORCE ON FISCAL NOTES.
47.7 		Subdivision 1.Membership. The Advisory Task Force on Fiscal Notes consists of the 
47.8 	following 13 voting members:
47.9 	(1) four senators, including two senators appointed by the senate majority leader and 
47.10 	two senators appointed by the senate minority leader;
47.11 	(2) four members of the house of representatives, including two members appointed by 
47.12 	the speaker of the house and two members appointed by the minority leader of the house 
47.13 	of representatives;
47.14 	(3) the commissioner of management and budget or a designee;
47.15 	(4) the state budget director or designee;
47.16 	(5) two fiscal note coordinators selected by the commissioner of management and budget; 
47.17 	and
47.18 	(6) one member appointed by the governor from the Office of the Governor.
47.19 	The lead fiscal analyst for the senate or a designee and the chief fiscal analyst for the 
47.20 	house of representatives or a designee shall serve on the task force as nonvoting members.
47.21 		Subd. 2.Fiscal note. As used in this section, "fiscal note" means a document containing 
47.22 	the items listed in Minnesota Statutes, section 3.98, subdivision 2.
47.23 		Subd. 3.Duties. The task force shall conduct a review of options for providing fiscal 
47.24 	notes to the legislature and the executive branch.  The task force shall compare the current 
47.25 	fiscal note process with a fiscal note process coordinated by a new legislative budget office.  
47.26 	In evaluating options and developing recommendations, the task force shall consider the 
47.27 	following:
47.28 	(1) the legislative auditor's 2012 report on fiscal notes;
47.29 	(2) the needs of the legislature for timely, accurate, unbiased fiscal notes prepared in a 
47.30 	cost-effective manner;
48.1 	(3) the time it takes to obtain a fiscal note under the current system and the time it is 
48.2 	expected to take to obtain a fiscal note through a new legislative budget office;
48.3 	(4) the accuracy of fiscal notes under the current system and the anticipated accuracy 
48.4 	of fiscal notes from a new legislative budget office;
48.5 	(5) methods used by other states for preparing fiscal notes;
48.6 	(6) the effect that legislative scheduling and amendments have on accuracy and timing 
48.7 	of fiscal notes, under the current system or through a new legislative budget office;
48.8 	(7) the extent to which legislative staff suggest changes and corrections to fiscal notes 
48.9 	and the responsiveness of the executive branch to those suggestions under the current fiscal 
48.10 	note process and the anticipated responsiveness of a new legislative budget office;
48.11 	(8) the cost of generating fiscal notes under the current system and the cost for generating 
48.12 	fiscal notes under a new legislative budget office;
48.13 	(9) whether there are sufficient safeguards under the current fiscal note process to ensure 
48.14 	that fiscal notes are generated without political or ideological bias or influence and what 
48.15 	safeguards would need to be put in place to ensure that a new legislative budget office would 
48.16 	generate fiscal notes without political or ideological bias or influence; and
48.17 	(10) options for additional duties for a new legislative budget office that would 
48.18 	complement the duty to generate fiscal notes, including a role for the office in 
48.19 	performance-based budgeting.
48.20 		Subd. 4.Report. The task force shall report to the chairs and ranking minority members 
48.21 	of the committees in the house of representatives and senate with jurisdiction over the fiscal 
48.22 	note process by June 1, 2018, with  recommendations for modifying the fiscal note process. 
48.23 	The report must include any draft legislation needed to implement the recommendations.
48.24 		Subd. 5.Chair; vice chair. The task force shall elect a chair from among the members 
48.25 	who are legislators by a majority vote of those members present. The task force shall elect 
48.26 	a vice chair from among the voting members who are not legislators.
48.27 		Subd. 6.Meetings. The meetings of the commission are subject to Minnesota Statutes, 
48.28 	section 3.055.
48.29 		Subd. 7.Administration. The Legislative Coordinating Commission shall provide 
48.30 	administrative services for the task force.
48.31 		Subd. 8.Compensation. Members who are not legislators serve without compensation.
49.1 		Subd. 9.Expiration. This section expires the day after submitting the report required 
49.2 	in subdivision 3.
49.3 		Subd. 10.First appointments. Appointing authorities must make initial appointments 
49.4 	to the Advisory Task Force on Fiscal Notes by June 1, 2017.
49.5 		Subd. 11. First meeting. The majority leader of the senate shall designate one senate 
49.6 	member of the Advisory Task Force on Fiscal Notes to convene the first meeting by August 
49.7 	1, 2017. The commission must select a chair from among the senate members at the first 
49.8 	meeting.

49.9 	Sec. 42. MN.IT; PERFORMANCE OUTCOMES REQUIRED.
 49.10 		Subdivision 1.Completion of agency consolidation. No later than December 31, 2018, 
49.11 	the state chief information officer must complete the executive branch information technology 
49.12 	consolidation required by Laws 2011, First Special Session chapter 10, article 4, section 7, 
49.13 	as amended by Laws 2013, chapter 134, section 29. The head of any state agency subject 
49.14 	to consolidation must assist the state chief information officer as necessary to implement 
49.15 	the requirements of this subdivision.
49.16 		Subd. 2.Information technology efficiencies and solutions. No later than December 
49.17 	31, 2018, the state chief information officer shall:
49.18 	(1) host at least 25 percent of all state agency servers on a public cloud solution;
49.19 	(2) store at least 35 percent of all state agency data on a public cloud solution; and
49.20 	(3) operate no more than six data centers statewide.
49.21 		Subd. 3.Personnel efficiencies. No later than June 30, 2019, the state chief information 
49.22 	officer shall reduce the Office of MN.IT Services' total cost for personnel by at least 
49.23 	$3,000,000.
49.24 		Subd. 4.Legislative report; application consolidation. No later than January 1, 2018, 
49.25 	the state chief information officer must submit a report to the chairs and ranking minority 
49.26 	members of the house of representatives and senate committees with jurisdiction over state 
49.27 	government finance on the status of business application software consolidation across state 
49.28 	agencies. At a minimum, the report must describe the outcomes achieved to date, a plan 
49.29 	and timeline for continued consolidation of business application software with measurable 
49.30 	outcome goals, and recommendations, if any, on legislation necessary to facilitate 
49.31 	achievement of these goals.

50.1 	Sec. 43. REIMBURSEMENT OF LEGAL COSTS FOR WRIGHT, BECKER, AND 
50.2 	RAMSEY COUNTIES.
 50.3 	The state auditor shall reimburse Wright, Becker, and Ramsey Counties for legal fees 
50.4 	incurred and costs and disbursements made as a result of defending against the state auditor's 
50.5 	lawsuit against them.

50.6 	Sec. 44. SCHEDULE OF CHARGES.
 50.7 	Notwithstanding Minnesota Statutes, section 6.581, subdivision 3, or any other law to 
50.8 	the contrary, the rates included in the state auditor's schedule of charges for examinations 
50.9 	conducted in calendar year 2017 must be no greater than the rates included in the schedule 
50.10 	of charges established for examinations conducted in calendar year 2016.

50.11 	Sec. 45. LEGISLATIVE COMMISSION TO REVIEW CONSOLIDATION OF THE 
50.12 	STATE'S INFORMATION TECHNOLOGY.
50.13 		Subdivision 1.Definitions. As used in this section, "information technology" means 
50.14 	information and telecommunications technology systems and services; and "consolidation" 
50.15 	means the reorganization of the state's information technology under a single agency as 
50.16 	provided under Laws 2011, First Special Session chapter 10, article 4, section 7, as amended 
50.17 	by Laws 2013, chapter 134, section 29.
50.18 		Subd. 2.Membership. The Legislative Commission to Review Consolidation of the 
50.19 	State's Information Technology consists of the following eight members:
50.20 	(1) four senators, including two senators appointed by the senate majority leader and 
50.21 	two senators appointed by the senate minority leader; and
50.22 	(2) four members of the house of representatives, including two members appointed by 
50.23 	the speaker of the house and two members appointed by the house minority leader.
50.24 		Subd. 3.Terms; vacancies. Members of the commission serve until the commission 
50.25 	sunsets. A vacancy in the membership of the commission must be filled for the unexpired 
50.26 	term in a manner that preserves the representation established by this section.
50.27 		Subd. 4.Duties. The commission shall review the results achieved by the state's 
50.28 	consolidation of its information technology under one agency.
50.29 		Subd. 5.Chair. The commission shall elect a chair by a majority vote of those members 
50.30 	present.
51.1 		Subd. 6.Meetings. The meetings of the commission are subject to Minnesota Statutes, 
51.2 	section 3.055, except that the commission may close a meeting when necessary to safeguard 
51.3 	the state's cybersecurity. The minutes, recordings, and documents from a closed meeting 
51.4 	under this subdivision shall be maintained by the Legislative Coordinating Commission 
51.5 	and shall not be made available to the public until eight years after the date of the meeting.
51.6 		Subd. 7.Administration. The Legislative Coordinating Commission shall provide 
51.7 	administrative services for the commission.
51.8 		Subd. 8.Compensation. Members may receive per diem for attending commission 
51.9 	meetings in accordance with the rules of their respective bodies and may be reimbursed for 
51.10 	their reasonable expenses as provided by the rules of their respective legislative bodies.
51.11 		Subd. 9.Report. By February 28, 2018, the commission shall report the results of the 
51.12 	commission's review to the chairs and ranking minority members of the committees in the 
51.13 	senate and in the house of representatives with jurisdiction over state government policy 
51.14 	and state government finance.  The report should address the following topics:
51.15 	(1) the number of full-time employees that provided information technology services to 
51.16 	state agencies prior to the consolidation and the number of  full-time employees that provide 
51.17 	information technology services to state agencies in fiscal year 2017;
51.18 	(2) the cost to the state of information technology in the year prior to consolidation and 
51.19 	the cost in fiscal year 2017;
51.20 	(3) the usefulness, effectiveness, and efficiency of information technology now used by 
51.21 	state agencies and how this compares to prior consolidation;
51.22 	(4) the responsiveness of MN.IT staff to requests for service from state agencies, and 
51.23 	how this compares to the responsiveness of information technology staff prior to 
51.24 	consolidation; and
51.25 	(5) a conclusion as to whether a consolidated information technology office is the best 
51.26 	option for supplying information technology to state agencies.
51.27 		Subd. 10.Sunset. The commission sunsets February 28, 2018, or the day after submission 
51.28 	of the report required in subdivision 9, whichever is earlier.
51.29 		Subd. 11.First appointments. Appointing authorities must make initial appointments 
51.30 	to the Legislative Commission to Review Consolidation of the State's Information 
51.31 	Technology by June 1, 2017.
52.1 		Subd. 12.First meeting. The member designated by the senate majority leader shall 
52.2 	convene the first meeting of the Legislative Commission to Review Consolidation of the 
52.3 	State's Information Technology under this section by September 15, 2017.

52.4 	Sec. 46. MINNESOTA ADMINISTRATIVE RULES STATUS SYSTEM (MARSS) 
52.5 	WORKING GROUP.
 52.6 		Subdivision 1.Creation. The MARSS working group consists of the following nine 
52.7 	members:
52.8 	(1) the chief judge of the Office of Administrative Hearings, or a designee;
52.9 	(2) the secretary of state, or a designee;
52.10 	(3) a representative from the Interagency Rules Committee (IRC) appointed by the 
52.11 	committee;
52.12 	(4) a representative from each of the following agencies with rulemaking experience 
52.13 	appointed by the appropriate commissioner:
52.14 	(i) the Department of Health;
52.15 	(ii) the Minnesota Pollution Control Agency;
52.16 	(iii) the Department of Transportation; and
52.17 	(iv) the Department of Labor and Industry;
52.18 	(5) as designated by the IRC, a representative from a health-related board; and
52.19 	(6) as designated by the IRC, a representative from a non-health-related board.
52.20 		Subd. 2.MARSS description. The Minnesota Administrative Rules Status System 
52.21 	(MARSS) is a concept for a new software application. The application would be built and 
52.22 	maintained by the Revisor's Office. Executive branch agencies and others would upload 
52.23 	official rulemaking record documents to the system. The goal is to improve public access, 
52.24 	security, preservation, and transparency of state agencies' official rulemaking records through 
52.25 	the creation of a single online records system. The system would serve as a single Internet 
52.26 	location for the public to track rulemaking progress and access the official rulemaking 
52.27 	record. Agencies would fulfill their requirement to maintain and preserve the official 
52.28 	rulemaking record by submitting required documents to the revisor for inclusion in the 
52.29 	online records system.
52.30 		Subd. 3.Duties. The working group must report by February 1, 2018, to the chairs and 
52.31 	ranking minority members of the committees in the house of representatives and senate 
53.1 	with jurisdiction over policy and finance for the legislature. The report must identify the 
53.2 	functional and nonfunctional requirements of the MARSS system. The working group must 
53.3 	define a funding mechanism to share the cost to build and maintain the MARSS system 
53.4 	among state agencies and departments.
53.5 		Subd. 4.Administration provisions. (a) The revisor of statutes or the revisor's designee 
53.6 	must convene the initial meeting of the working group by August 1, 2017. Upon request of 
53.7 	the working group, the revisor must provide meeting space and administrative services for 
53.8 	the group.
53.9 	(b) The working group must elect a chair from among its members at the first meeting.
53.10 	(c) Members serve without compensation and without reimbursement for expenses.
53.11 	(d) The working group expires on February 1, 2018, or upon submission of documents 
53.12 	fulfilling its duties, whichever is earlier.
53.13 		Subd. 5.Deadline for appointments and designations. The appointments and 
53.14 	designations authorized by this section must be completed by July 1, 2017.

53.15 	Sec. 47. EYELASH TECHNICIAN GRANDFATHERING.
 53.16 	(a) The board must issue grandfathered eyelash technician licenses no later than February 
53.17 	1, 2018, under the conditions in this section.
53.18 	(b) A complete grandfathering application for an eyelash technician license must be 
53.19 	received in the board office between August 1, 2017, and January 31, 2018, and must contain:
53.20 	(1) proof of a high school diploma or equivalent;
53.21 	(2) proof of completion of an eyelash extension training course before July 1, 2017;
53.22 	(3) proof of completion of a six-hour board-approved public health and safety course 
53.23 	provided by a board-licensed school or a board-recognized professional association organized 
53.24 	under Minnesota Statutes, chapter 317A. Four hours must be related to health, safety, and 
53.25 	infection control and two hours must be related to Minnesota laws and rules governing 
53.26 	cosmetology;
53.27 	(4) original passing results no more than one year old of board-approved laws and rules 
53.28 	test and theory tests; and
53.29 	(5) the practitioner fees required under Minnesota Statutes, section 155A.25.
54.1 	(c) A complete grandfathering application for an eyelash salon manager license must 
54.2 	be received in the board office between August 1, 2017, and January 31, 2018, and must 
54.3 	contain:
54.4 	(1) proof of a high school diploma or equivalent;
54.5 	(2) proof of completion of an eyelash extension training course before July 1, 2017;
54.6 	(3) documentation of at least 2,700 hours of experience performing eyelash extensions 
54.7 	within the last three years;
54.8 	(4) original passing results no more than one year old of board-approved laws and rules 
54.9 	test and theory tests;
54.10 	(5) original passing results no more than one year old of board-approved salon manager 
54.11 	test;
54.12 	(6) proof of a six-hour board-approved public health and safety course provided by a 
54.13 	board-licensed school or a board-recognized professional association organized under 
54.14 	Minnesota Statutes, chapter 317A. Four hours must be related to infection control and two 
54.15 	hours must be related to Minnesota laws and rules; and
54.16 	(7) the practitioner fees required under Minnesota Statutes, section 155A.25.
54.17 	(d) Grandfathered licenses must not be expedited under Minnesota Statutes, section 
54.18 	155A.25, subdivision 7. The application timelines under Minnesota Statutes, section 155A.25, 
54.19 	subdivisions 5, 6, and 8, do not apply to grandfathered licenses.

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

54.21 	Sec. 48. EYELASH TECHNICIAN RULEMAKING.
 54.22 	The Board of Cosmetologist Examiners shall adopt rules governing the eyelash technician 
54.23 	and salon licenses, which must include scope of practice, the conditions and process of 
54.24 	issuing and renewing the license, requirements related to education and testing, and 14 hours 
54.25 	of training regarding application of eyelash extensions in a board-licensed school. The board 
54.26 	may use the expedited rule process in Minnesota Statutes, section 14.389. The grant of 
54.27 	rulemaking authority under this section expires May 31, 2019.

54.28 	Sec. 49. EYELASH TECHNICIAN LICENSING.
 54.29 	The Board of Cosmetologist Examiners must not issue an eyelash practitioner license 
54.30 	before February 1, 2018, except for grandfathered licenses issued under section 39. The 
55.1 	Board of Cosmetologist Examiners must not require a person to have an eyelash practitioner 
55.2 	license for eyelash extensions before February 1, 2018.

55.3 	Sec. 50. REVISOR'S INSTRUCTION.
 55.4 	By January 15, 2018, the revisor of statutes shall present a bill to the legislature to make 
55.5 	the conforming statutory changes to incorporate changes in this article to the contested case 
55.6 	procedures under Minnesota Statutes, section 14.57.

55.7 	Sec. 51.  REPEALER.
 55.8 	Minnesota Statutes 2016, sections 6.581, subdivision 1; 10A.30; 10A.31, subdivisions 
55.9 	1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b, and 11; 10A.315; 10A.321; 10A.322, subdivisions 
55.10 	1, 2, and 4; 10A.323; 155A.23, subdivision 8; and 349A.08, subdivision 3, are repealed.

55.11 	ARTICLE 3
55.12 	ELECTIONS

55.13 	Section 1. VOTING EQUIPMENT GRANT.
 55.14 		Subdivision 1.Voting equipment grant account. A voting equipment grant program 
55.15 	is established. The secretary of state must use money appropriated for the program to provide 
55.16 	grants to counties and municipalities as authorized by this section. Funds appropriated for 
55.17 	the grant are available until June 30, 2020.
55.18 		Subd. 2.Authorized equipment. (a) A county or municipality may apply to receive a 
55.19 	grant under this section for the purchase or lease of the following equipment:
55.20 	(1) electronic roster equipment and software that meets the technology requirements of 
55.21 	Minnesota Statutes, section 201.225, subdivision 2;
55.22 	(2) assistive voting technology; or
55.23 	(3) automatic tabulating equipment.
55.24 	A purchase or lease of equipment is eligible for a grant under this section if the purchase 
55.25 	is made, or lease entered, on or after July 1, 2017. A county or municipality that has 
55.26 	purchased or leased eligible equipment before July 1, 2017, may apply for reimbursement.
55.27 	(b) The grant funds must not be used for maintenance or repair of voting equipment.
55.28 		Subd. 3.Amount of grant. A county or municipal government is eligible to receive a 
55.29 	grant equal to 75 percent of the total cost of the electronic roster equipment and software 
55.30 	or 50 percent of the total cost for assistive voting technology or automatic tabulating 
56.1 	equipment. The secretary of state must first award grants to counties and municipalities 
56.2 	leasing or purchasing new equipment or software. If funds remain after awarding grants for 
56.3 	new equipment or software, the secretary of state must use the remaining funds for grants 
56.4 	to counties and municipalities seeking reimbursement for equipment or software already 
56.5 	purchased.
56.6 		Subd. 4.Application for grant; certification of costs. (a) To receive a grant, a county 
56.7 	or municipality must submit an application to the secretary of state. The secretary of state 
56.8 	shall prescribe a form for this purpose. At a minimum, the application must describe:
56.9 	(1) the type of equipment or software proposed for purchase or lease;
56.10 	(2) the expected total cost of the equipment or software, and sources of funding that will 
56.11 	be used for the purchase or lease in addition to the grant funding provided by this section;
56.12 	(3) the county's or municipality's plan to address the long-term maintenance, repair, and 
56.13 	eventual replacement costs for the equipment or software without using any funds from the 
56.14 	grant for these purposes; and
56.15 	(4) any other information required by the secretary of state.
56.16 	(b) The secretary of state must establish:
56.17 	(1) a deadline for receipt of grant applications;
56.18 	(2) a procedure for awarding and distributing grants;
56.19 	(3) criteria for the fair, proportional distribution of grants if the funds do not completely 
56.20 	cover the requests for a particular type of equipment; and
56.21 	(4) a process for verifying the proper use of the grants after distribution.
56.22 		Subd. 5.Report to legislature. No later than January 15, 2018, and annually thereafter 
56.23 	until the appropriations provided for grants under this section have been exhausted, the 
56.24 	secretary of state must submit a report to the legislative committees with jurisdiction over 
56.25 	elections policy on grants awarded by this section. The report must detail each grant awarded, 
56.26 	including the jurisdiction, the amount of the grant, and the type of equipment or software 
56.27 	purchased.

APPENDIX 

Repealed Minnesota Statutes: S0605-2 

6.581 STATE AUDITOR ENTERPRISE FUND.Subdivision 1.State auditor enterprise fund.  
A state auditor enterprise fund is established in the state treasury. All amounts received for the costs and expenses of examinations performed under this chapter shall be credited to the fund. Amounts credited to the fund are annually appropriated to the state auditor to pay the costs and expenses related to the examinations performed, including, but not limited to, salaries, office overhead, equipment, authorized contracts, and other expenses. 

10A.30 STATE ELECTIONS CAMPAIGN ACCOUNT.Subdivision 1.Establishment. 
An account is established in the special revenue fund of the state known as the "state elections campaign account." 

Subd. 2.Separate account. 
Within the state elections campaign account there must be maintained a separate political party account for the state committee and the candidates of each political party and a general account. 

Subd. 3.Special elections account. 
An account is established in the special revenue fund of the state known as the "state special elections campaign account." 

10A.31 DESIGNATION OF INCOME TAX PAYMENTS.Subdivision 1.Designation. 
An individual resident of this state who files an income tax return or a renter and homeowner property tax refund return with the commissioner of revenue may designate on their original return that $5 be paid from the general fund of the state into the state elections campaign account. If a husband and wife file a joint return, each spouse may designate that $5 be paid. No individual is allowed to designate $5 more than once in any year. The taxpayer may designate that the amount be paid into the account of a political party or into the general account. 

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

Subd. 3a.Qualification of political parties. 
(a) A major political party qualifies for inclusion on the income tax form and property tax refund return as provided in subdivision 3 if it qualifies as a major political party by July 1 of the taxable year. 

(b) A minor political party qualifies for inclusion on the income tax form and property tax refund return as provided in subdivision 3 if it qualifies as a minor party statewide by July 1 of the taxable year. 

(c) The secretary of state shall notify each major and minor political party by the first Monday in January of each odd-numbered year of the conditions necessary for the party to participate in income tax form and property tax refund return programs. 

(d) The secretary of state shall notify each political party, the commissioner of revenue, and the Campaign Finance and Public Disclosure Board by July 1 of each year and following certification of the results of each general election of the political parties that qualify for inclusion on the income tax form and property tax refund return as provided in subdivision 3. 

Subd. 4.Appropriation. 
(a) The amounts designated by individuals for the state elections campaign account, less three percent, are appropriated from the general fund, must be transferred and credited to the appropriate account in the state elections campaign account, and are annually appropriated for distribution as set forth in subdivisions 5, 5a, 6, and 7. The remaining three percent must be kept in the general fund for administrative costs. 

(b) In addition to the amounts in paragraph (a), $1,020,000 for each general election is appropriated from the general fund for transfer to the general account of the state elections campaign account. 

Subd. 5.Allocation. 
(a) General account. In each calendar year the money in the general account must be allocated to candidates as follows: 

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

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

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

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

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

(b) Party account. In each calendar year the money in each party account must be allocated as follows: 

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

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

(3) 1.6 percent each for the offices of secretary of state and state auditor; 

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

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

(6) ten percent or $50,000, whichever is less, for the state committee of a political party; one-third of any amount in excess of that allocated to the state committee of a political party under this clause must be allocated to the office of state senator and two-thirds must be allocated to the office of state representative under clause (4). 

Money allocated to each state committee under clause (6) must be deposited in a separate account and must be spent for only those items enumerated in section 10A.275. Money allocated to a state committee under clause (6) must be paid to the committee by the board as it is received in the account on a monthly basis, with payment on the 15th day of the calendar month following the month in which the returns were processed by the Department of Revenue, provided that these distributions would be equal to 90 percent of the amount of money indicated in the Department of Revenue's weekly unedited reports of income tax returns and property tax refund returns processed in the month, as notified by the Department of Revenue to the board. The amounts paid to each state committee are subject to biennial adjustment and settlement at the time of each certification required of the commissioner of revenue under subdivisions 7 and 10. If the total amount of payments received by a state committee for the period reflected on a certification by the Department of Revenue is different from the amount that should have been received during the period according to the certification, each subsequent monthly payment must be increased or decreased to the fullest extent possible until the amount of the overpayment is recovered or the underpayment is distributed. 

Subd. 5a.Party account for legislative candidates. 
To ensure that money will be returned to the counties from which it was collected and to ensure that the distribution of money rationally relates to the support for particular parties or for particular candidates within legislative districts, money from the party accounts for legislative candidates must be distributed as provided in this subdivision. 

Each candidate for the state senate and state house of representatives whose name is to appear on the ballot in the general election must receive money from the candidate's party account allocated to candidates for the state senate or state house of representatives, whichever applies, according to the following formula: 

For each county within the candidate's district, the candidate's share of the dollars designated by taxpayers who resided in that county and credited to the candidate's party account and allocated to that office must be: 

(1) the sum of the votes cast in the last general election in that part of the county in the candidate's district for all candidates of that candidate's party whose names appeared on the ballot statewide and for the state senate and state house of representatives, divided by 

(2) the sum of the votes cast in the entire county in the last general election for all candidates of that candidate's party whose names appeared on the ballot statewide and for the state senate and state house of representatives, multiplied by 

(3) the amount in the candidate's party account designated by taxpayers who resided in that county and allocated to that office. 

The sum of all the county shares calculated in the formula above is the candidate's share of the candidate's party account. 

In a year in which an election for the state senate occurs, with respect to votes for candidates for the state senate only, "last general election" means the last general election in which an election for the state senate occurred. 

For a party under whose name no candidate's name appeared on the ballot statewide in the last general election, amounts in the party's account must be allocated based on (i) the number of people voting in the last general election in that part of the county in the candidate's district, divided by (ii) the number of the people voting in the entire county in the last general election, multiplied by (iii) the amount in the candidate's party account designated by taxpayers who resided in that county and allocated to that office. 

In the first general election after the legislature is redistricted, "the candidate's district" means the newly drawn district and voting data from the last general election must be applied to the area encompassing the newly drawn district, notwithstanding that the area was in a different district in the last general election. 

If in a district there was no candidate of a party for the state senate or state house of representatives in the last general election, or if a candidate for the state senate or state house of representatives was unopposed, the vote for that office for that party is the average vote of all the remaining candidates of that party in each county of that district whose votes are included in the sums in clauses (1) and (2). The average vote must be added to the sums in clauses (1) and (2) before the calculation is made for all districts in the county. 

Subd. 6.Distribution of party accounts. 
As soon as the board has obtained from the secretary of state the results of the primary election, but no later than one week after certification by the State Canvassing Board of the results of the primary, the board must distribute the available money in each party account, as certified by the commissioner of revenue one week before the state primary, to the candidates of that party who have signed a spending limit agreement under section 10A.322 and filed the affidavit of contributions required by section 10A.323, who were opposed in either the primary election or the general election, and whose names are to appear on the ballot in the general election, according to the allocations set forth in subdivisions 5 and 5a. The public subsidy from the party account may not be paid in an amount greater than the expenditure limit of the candidate or the expenditure limit that would have applied to the candidate if the candidate had not been freed from expenditure limits under section 10A.25, subdivision 10. 

Subd. 6a.Party account money not distributed. 
Money from a party account not distributed to candidates for state senator or representative in any election year must be returned to the general fund of the state, except that the subsidy from the party account an unopposed candidate would otherwise have been eligible to receive must be paid to the state committee of the candidate's political party to be deposited in a special account under subdivision 5, paragraph (b), clause (6), and used for only those items permitted under section 10A.275. Money from a party account not distributed to candidates for other offices in an election year must be returned to the party account for reallocation to candidates as provided in subdivision 5, paragraph (b), in the following year. 

Subd. 7.Distribution of general account. 
(a) As soon as the board has obtained the results of the primary election from the secretary of state, but no later than one week after certification of the primary results by the State Canvassing Board, the board must distribute the available money in the general account, as certified by the commissioner of revenue one week before the state primary and according to allocations set forth in subdivision 5, in equal amounts to all candidates of a major political party whose names are to appear on the ballot in the general election and who: 

(1) have signed a spending limit agreement under section 10A.322; 

(2) have filed the affidavit of contributions required by section 10A.323; and 

(3) were opposed in either the primary election or the general election. 

(b) The public subsidy under this subdivision may not be paid in an amount that would cause the sum of the public subsidy paid from the party account plus the public subsidy paid from the general account to exceed 50 percent of the expenditure limit for the candidate or 50 percent of the expenditure limit that would have applied to the candidate if the candidate had not been freed from expenditure limits under section 10A.25, subdivision 10. Money from the general account not paid to a candidate because of the 50 percent limit must be distributed equally among all other qualifying candidates for the same office until all have reached the 50 percent limit or the balance in the general account is exhausted. 

Subd. 7a.Withholding of public subsidy. 
If a candidate who is eligible for payment of public subsidy under this section has not filed the report of receipts and expenditures required under section 10A.20 before a primary election, any public subsidy for which that candidate is eligible must be withheld by the board until the candidate complies with the filing requirements of section 10A.20 and the board has sufficient time to review or audit the report. If a candidate who is eligible for public subsidy does not file the report due before the primary election under section 10A.20 by the date that the report of receipts and expenditures filed before the general election is due, that candidate shall not be paid public subsidy for that election. 

Subd. 10.December distribution. 
In the event that on the date of either certification by the commissioner of revenue as provided in subdivision 6 or 7, less than 98 percent of the tax returns have been processed, the commissioner of revenue must certify to the board by December 1 the amount accumulated in each account since the previous certification. By December 15, the board must distribute to each candidate according to the allocations in subdivisions 5 and 5a the amounts to which the candidates are entitled. 

Subd. 10a.Form of distribution. 
A distribution to a candidate must be in the form of a check made "payable to the campaign fund of ......(name of candidate)......." 

Subd. 10b.Remainder. 
Money accumulated after the final certification must be kept in the respective accounts for distribution in the next general election year. 

Subd. 11.Write-in candidate. 
For the purposes of this section, a write-in candidate is a candidate only upon complying with sections 10A.322 and 10A.323. 

10A.315 SPECIAL ELECTION SUBSIDY.
(a) Each eligible candidate for a legislative office in a special election must be paid a public subsidy equal to the sum of: 

(1) the party account money at the last general election for the candidate's party for the office the candidate is seeking; and 

(2) the general account money paid to a candidate for the same office at the last general election. 

(b) A candidate who wishes to receive this public subsidy must submit a signed agreement under section 10A.322 to the board and must meet the contribution requirements of section 10A.323. The special election subsidy must be distributed in the same manner as money in the party and general accounts is distributed to legislative candidates in a general election. 

(c) The amount necessary to make the payments required by this section is appropriated from the general fund for transfer to the state special elections campaign account for distribution by the board as set forth in this section. 

10A.321 ESTIMATES OF MINIMUM AMOUNTS TO BE RECEIVED.Subdivision 1.Calculation and certification of estimates. 
The commissioner of revenue must calculate and certify to the board one week before the first day for filing for office in each election year an estimate of the total amount in the state general account of the state elections campaign account and the amount of money each candidate who qualifies, as provided in section 10A.31, subdivisions 6 and 7, may receive from the candidate's party account in the state elections campaign account. This estimate must be based upon the allocations and formulas in section 10A.31, subdivisions 5 and 5a, any necessary vote totals provided by the secretary of state to apply the formulas in section 10A.31, subdivisions 5 and 5a, and the amount of money expected to be available after 100 percent of the tax returns have been processed. 

Subd. 2.Publication, certification, and notification procedures. 
Before the first day of filing for office, the board must publish and forward to all filing officers the estimates calculated and certified under subdivision 1 along with a copy of section 10A.25, subdivision 10. Within one week after the last day for filing for office, the secretary of state must certify to the board the name, address, office sought, and party affiliation of each candidate who has filed with that office an affidavit of candidacy or petition to appear on the ballot. The auditor of each county must certify to the board the same information for each candidate who has filed with that county an affidavit of candidacy or petition to appear on the ballot. Within two weeks after the last day for filing for office, the board must notify all candidates of their estimated minimum amount. The board must include with the notice a form for the agreement provided in section 10A.322 along with a copy of section 10A.25, subdivision 10. 

10A.322 SPENDING LIMIT AGREEMENTS.Subdivision 1.Agreement by candidate. 
(a) As a condition of receiving a public subsidy, a candidate must sign and file with the board a written agreement in which the candidate agrees that the candidate will comply with sections 10A.25; 10A.27, subdivision 10; 10A.324; and 10A.38. 

(b) Before the first day of filing for office, the board must forward agreement forms to all filing officers. The board must also provide agreement forms to candidates on request at any time. The candidate must file the agreement with the board at least three weeks before the candidate's state primary. An agreement may not be filed after that date. An agreement once filed may not be rescinded. 

(c) The board must notify the commissioner of revenue of any agreement signed under this subdivision. 

(d) Notwithstanding paragraph (b), if a vacancy occurs that will be filled by means of a special election and the filing period does not coincide with the filing period for the general election, a candidate may sign and submit a spending limit agreement not later than the day after the close of the filing period for the special election for which the candidate filed. 

Subd. 2.How long agreement is effective. 
The agreement, insofar as it relates to the expenditure limits in section 10A.25, as adjusted by section 10A.255, and the contribution limit in section 10A.27, subdivision 10, remains effective for candidates until the dissolution of the principal campaign committee of the candidate or the end of the first election cycle completed after the agreement was filed, whichever occurs first. 

Subd. 4.Refund receipt forms; penalty. 
(a) The board must make available to a political party on request and to any candidate for whom an agreement under this section is effective, a supply of official refund receipt forms that state in boldface type that: 

(1) a contributor who is given a receipt form is eligible to claim a refund as provided in section 290.06, subdivision 23; and 

(2) if the contribution is to a candidate, that the candidate has signed an agreement to limit campaign expenditures as provided in this section. 

The forms must provide duplicate copies of the receipt to be attached to the contributor's claim. 

(b) The willful issuance of an official refund receipt form or a facsimile of one to any of the candidate's contributors by a candidate or treasurer of a candidate who did not sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed by the board. 

(c) The willful issuance of an official refund receipt form or a facsimile to an individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to a civil penalty of up to $3,000 imposed by the board. 

(d) A violation of paragraph (b) or (c) is a misdemeanor. 

10A.323 AFFIDAVIT OF CONTRIBUTIONS.
(a) In addition to the requirements of section 10A.322, to be eligible to receive a public subsidy under section 10A.31 a candidate or the candidate's treasurer must: 

(1) between January 1 of the previous year and the cutoff date for transactions included in the report of receipts and expenditures due before the primary election, accumulate contributions from individuals eligible to vote in this state in at least the amount indicated for the office sought, counting only the first $50 received from each contributor, excluding in-kind contributions: 

(i) candidates for governor and lieutenant governor running together, $35,000; 

(ii) candidates for attorney general, $15,000; 

(iii) candidates for secretary of state and state auditor, separately, $6,000; 

(iv) candidates for the senate, $3,000; and 

(v) candidates for the house of representatives, $1,500; 

(2) file an affidavit with the board stating that the principal campaign committee has complied with this paragraph. The affidavit must state the total amount of contributions that have been received from individuals eligible to vote in this state, excluding: 

(i) the portion of any contribution in excess of $50; 

(ii) any in-kind contribution; and 

(iii) any contribution for which the name and address of the contributor is not known and recorded; and 

(3) submit the affidavit required by this section to the board in writing by the deadline for reporting of receipts and expenditures before a primary under section 10A.20, subdivision 4. 

(b) A candidate for a vacancy to be filled at a special election for which the filing period does not coincide with the filing period for the general election must accumulate the contributions specified in paragraph (a) and must submit the affidavit required by this section to the board within five days after the close of the filing period for the special election for which the candidate filed. 

155A.23 DEFINITIONS.Subd. 8.Manager. 
A "manager" is any person who is a cosmetologist, esthetician, advanced practice esthetician, nail technician practitioner, or eyelash technician practitioner, and who has a manager license and provides any services under that license, as defined in subdivision 3. 

349A.08 LOTTERY PRIZES.Subd. 3.Prizes won by persons under age 18. 
The following provisions govern the payment of a lottery prize to a person under age 18: 

(1) if the prize is less than $5,000, the director may give a draft, payable to the order of the person under age 18, to the person's parents, custodial parent if one parent has custody, guardian, or other adult member of the person's family; and 

(2) if the prize is $5,000 or more, the director shall deposit the prize with the district court and section 540.08 applies to the investment and distribution of the money.