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, and retirement funds; changing provisions in 
1.5 	state government operations; making technical changes to state budgeting terms; 
1.6 	changing administrative rules provisions; changing provisions in veterans affairs, 
1.7 	campaign finance, and elections;amending Minnesota Statutes 2016, sections 
1.8 	3.305, subdivision 1; 3.842, subdivision 4a; 3.855, subdivision 2; 3.8843, 
1.9 	subdivision 7; 3.971, subdivisions 2, 6; 3.972, by adding a subdivision; 3.98, 
1.10 	subdivisions 1, 4; 3.987, subdivision 1; 6.481, subdivisions 3, 6; 6.56, subdivision 
1.11 	2; 6.581, subdivision 4; 10A.01, subdivisions 12, 16, 26; 10A.02, subdivision 13; 
1.12 	10A.025, subdivision 1a; 10A.04, by adding a subdivision; 10A.071, subdivision 
1.13 	1; 10A.09, subdivisions 5, 6; 10A.105, subdivision 1; 10A.15, subdivision 1, by 
1.14 	adding a subdivision; 10A.20, subdivisions 3, 15; 10A.245, subdivision 2; 10A.25, 
1.15 	subdivisions 1, 2, 10; 10A.257, subdivision 1; 10A.27, subdivision 10, by adding 
1.16 	subdivisions; 10A.28, subdivision 3; 10A.31, by adding a subdivision; 10A.322, 
1.17 	subdivision 1; 10A.38; 14.002; 14.02, by adding a subdivision; 14.05, subdivisions 
1.18 	1, 2, 6, 7, by adding subdivisions; 14.101, subdivision 1; 14.116; 14.125; 14.127; 
1.19 	14.131; 14.14, subdivisions 1a, 2a; 14.18, subdivision 1; 14.19; 14.22, subdivision 
1.20 	1; 14.23; 14.25, subdivision 1; 14.26; 14.27; 14.365; 14.381, subdivision 3; 14.388, 
1.21 	subdivisions 1, 2; 14.389, subdivision 3; 14.44; 14.45; 14.51; 14.57; 15.0596; 
1.22 	15.191, subdivisions 1, 3; 16A.065; 16A.13, subdivision 2a; 16A.134; 16A.15, 
1.23 	subdivision 3; 16A.17, subdivision 5; 16A.272, subdivision 3; 16A.40; 16A.42, 
1.24 	subdivisions 2, 4, by adding a subdivision; 16A.56; 16A.671, subdivision 1; 16A.90; 
1.25 	16B.04, subdivision 2; 16B.055, subdivision 1; 16B.335, subdivision 1; 16B.37, 
1.26 	subdivision 4; 16B.371; 16B.4805, subdivisions 2, 4; 16B.97, by adding a 
1.27 	subdivision; 16D.03, subdivision 2; 16D.09, subdivision 1; 16E.016; 16E.0466; 
1.28 	21.116; 43A.17, subdivision 11; 43A.24, by adding a subdivision; 43A.30, 
1.29 	subdivision 2; 43A.49; 49.24, subdivisions 13, 16; 69.031, subdivision 1; 80A.65, 
1.30 	subdivision 9; 84A.23, subdivision 4; 84A.33, subdivision 4; 84A.40; 84A.52; 
1.31 	88.12, subdivision 1; 94.522; 94.53; 116J.64, subdivision 7; 126C.55, subdivisions 
1.32 	2, 9; 126C.68, subdivision 3; 126C.69, subdivision 14; 127A.34, subdivision 1; 
1.33 	127A.40; 136F.46, subdivision 1; 136F.70, subdivision 3; 138.69; 155A.30, 
1.34 	subdivision 5; 162.08, subdivisions 10, 11; 162.14, subdivisions 4, 5; 162.18, 
1.35 	subdivision 4; 162.181, subdivision 4; 163.051, subdivision 3; 176.181, subdivision 
1.36 	2; 176.581; 176.591, subdivision 3; 179A.20, by adding a subdivision; 190.19, 
1.37 	subdivisions 2, 2a; 192.55; 196.05, subdivision 1; 196.052; 197.236, subdivision 
1.38 	9; 197.791, subdivisions 2, 3, 4, 5, 5a; 198.16; 237.30; 241.13, subdivision 1; 
1.39 	244.19, subdivision 7; 256B.20; 260B.331, subdivision 2; 260C.331, subdivision 
2.1 	2; 270C.13, subdivision 1; 273.121, subdivision 1; 287.08; 297I.10, subdivision 
2.2 	1; 299C.21; 348.05; 352.04, subdivision 9; 352.05; 352.115, subdivision 12; 352.12, 
2.3 	subdivision 13; 353.05; 353.27, subdivisions 3c, 7; 353.505; 354.42, subdivision 
2.4 	7; 354.52, subdivisions 4, 4b; 401.15, subdivision 1; 446A.086, subdivision 4; 
2.5 	446A.16, subdivision 1; 462A.18, subdivision 1; 471.6161, subdivision 8; 471.617, 
2.6 	subdivision 2; 475A.04, subdivision 1; 508.12, subdivision 1; 518A.79, by adding 
2.7 	a subdivision; 525.841; Laws 2016, chapter 127, section 8; proposing coding for 
2.8 	new law in Minnesota Statutes, chapters 2; 3; 6; 10A; 14; 15; 16A; 16B; 43A; 
2.9 	118A; 197; repealing Minnesota Statutes 2016, sections 4.46; 6.581, subdivision 
2.10 	1; 10A.28, subdivision 1; 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 
2.11 	7a, 10, 10a, 10b, 11; 10A.315; 10A.321; 10A.322, subdivisions 2, 4; 10A.323; 
2.12 	10A.324, subdivisions 1, 3; 14.05, subdivision 5; Minnesota Rules, parts 4501.0300, 
2.13 	subpart 3; 4501.0500, subpart 2; 4503.0200, subpart 6; 4503.0300, subpart 4; 
2.14 	4503.0400, subpart 1; 4503.0500, subparts 5, 8; 4503.0700, subparts 2, 3; 
2.15 	4503.1300, subpart 5; 4503.1400, subparts 2, 3, 4, 5, 6, 7, 8, 9; 4503.1450; 
2.16 	4503.1600; 4503.1700; 4503.1800; 4505.0100, subpart 3; 4505.0900, subparts 2, 
2.17 	3, 4, 5, 6, 7; 4511.0500, subpart 2; 4512.0100, subparts 2, 4, 5; 4525.0210, subpart 
2.18 	1.
2.19 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.20 	ARTICLE 1
2.21 	STATE GOVERNMENT APPROPRIATIONS

2.22	Section 1. APPROPRIATIONS.
 	
2.23 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
2.24 	and for the purposes specified in this article. The appropriations are from the general fund, 
2.25 	or another named fund, and are available for the fiscal years indicated for each purpose. 
2.26 	The figures "2018" and "2019" used in this article mean that the appropriations listed under 
2.27 	them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. 
2.28 	"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" 
2.29 	is fiscal years 2018 and 2019.

2.30				APPROPRIATIONS
	
2.31				Available for the Year
	
2.32				Ending June 30
	
2.33					2018
		2019

2.34	Sec. 2. LEGISLATURE

2.35	Subdivision 1.Total Appropriation
 	$
	83,057,000
	$
	82,123,000

2.36	Appropriations by Fund
	
2.37		2018
	2019
	
2.38	General
	82,929,000
	81,995,000
	
2.39	Health Care Access
	128,000
	128,000
	
3.1 	The amounts that may be spent for each 
3.2 	purpose are specified in the following 
3.3 	subdivisions.

3.4	Subd. 2.Senate
 		32,299,000
		32,105,000

3.5	Subd. 3.House of Representatives
 		32,383,000
		32,383,000

3.6	Subd. 4.Legislative Coordinating Commission
 		18,375,000
		17,635,000

3.7	Appropriations by Fund
	
3.8	General
	18,247,000
	17,507,000
	
3.9	Health Care Access
	128,000
	128,000
	
3.10 	Appropriations provided by this subdivision 
3.11 	may be used for designated staff to support 
3.12 	the following offices and commissions: Office 
3.13 	of the Legislative Auditor; Office of the 
3.14 	Revisor of Statutes; Legislative Reference 
3.15 	Library; Geographic Information Services; 
3.16 	Legislative Budget Office; Legislative-Citizen 
3.17 	Commission on Minnesota Resources; 
3.18 	Legislative Commission on Pensions and 
3.19 	Retirement; Legislative Energy Commission; 
3.20 	and the Lessard-Sams Outdoor Heritage 
3.21 	Council. The operation of all other joint 
3.22 	offices and commissions must be supported 
3.23 	by the central administrative staff of the 
3.24 	Legislative Coordinating Commission. This 
3.25 	appropriation may additionally be used for 
3.26 	central administrative staff to support the work 
3.27 	of the Economic Status of Women Advisory 
3.28 	Committee.
3.29 	From its funds, $10,000 each year is for 
3.30 	purposes of the legislators' forum, through 
3.31 	which Minnesota legislators meet with 
3.32 	counterparts from South Dakota, North 
3.33 	Dakota, and Manitoba to discuss issues of 
3.34 	mutual concern.
4.1 	Legislative Auditor. $6,744,000 the first year 
4.2 	and $6,564,000 the second year are for the 
4.3 	Office of the Legislative Auditor.
4.4 	Of these amounts, $130,000 the first year is 
4.5 	for the transit financial activity reviews 
4.6 	required by Minnesota Statutes, section 3.972, 
4.7 	subdivision 4.
4.8 	No later than January 15, 2018, the legislative 
4.9 	auditor must complete a review of the small 
4.10 	business investment tax credit incentive 
4.11 	established in Minnesota Statutes, section 
4.12 	116J.8737. The review must follow the 
4.13 	evaluation plan established for review of a 
4.14 	general incentive program under Minnesota 
4.15 	Statutes, section 3.9735, subdivision 4.
4.16 	No later than January 15, 2018, the legislative 
4.17 	auditor must complete an assessment of the 
4.18 	adequacy of the county audits performed by 
4.19 	the state auditor in calendar year 2016. The 
4.20 	standards for conducting the assessment must 
4.21 	be identical to those described in the report of 
4.22 	the state auditor dated March 2017, titled 
4.23 	"Assessing the Adequacy of 2015 County 
4.24 	Audits Performed by Private CPA Firms."
4.25 	Revisor of Statutes. $6,430,000 the first year 
4.26 	and $6,093,000 the second year are for the 
4.27 	Office of the Revisor of Statutes.
4.28 	Of these amounts, $250,000 in the first year 
4.29 	is for upgrades and repairs to the information 
4.30 	technology data center located in the State 
4.31 	Office Building.
4.32 	Legislative Budget Office. $864,000 the first 
4.33 	year and $818,000 the second year are for the 
5.1 	Legislative Budget Office established in 
5.2 	section 3.8853.
5.3 	Legislative Reference Library. $1,622,000 
5.4 	the first year and $1,445,000 the second year 
5.5 	are for the Legislative Reference Library.
5.6 	Of these amounts, $177,000 the first year is 
5.7 	for the digital preservation of audio recordings 
5.8 	documenting committee hearings and floor 
5.9 	sessions of the legislature.

5.10
5.11	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	4,403,000
	$
	4,403,000
	
5.12 	(a) This appropriation is to fund the Office of 
5.13 	the Governor and Lieutenant Governor.
5.14 	(b) Up to $19,000 the first year and up to 
5.15 	$19,000 the second year are for necessary 
5.16 	expenses in the normal performance of the 
5.17 	Governor's and Lieutenant Governor's duties 
5.18 	for which no other reimbursement is provided.
5.19 	(c) The following amounts that are 
5.20 	appropriated from the general fund in fiscal 
5.21 	years 2018 and 2019 to the specified agency 
5.22 	and are budgeted to be transferred to the 
5.23 	governor for personnel costs incurred by the 
5.24 	Offices of the Governor and the Lieutenant 
5.25 	Governor to support the agencies are canceled 
5.26 	to the general fund and the base for each 
5.27 	agency is reduced by the specified amount for 
5.28 	fiscal years 2020 and 2021.

5.29	Agency
		2018
			2019
	
5.30	Commerce
					67,000
			67,000
	
5.31
5.32	Employment and 
Economic Development
					109,000
			109,000
	
5.33	Education
					58,000
			58,000
	
5.34
5.35	Office of Higher 
Education
					25,000
			25,000
	
6.1	Administration
					25,000
			25,000
	
6.2
6.3	Management and 
Budget
					21,000
			21,000
	
6.4	MN.IT Services
					25,000
			25,000
	
6.5	Revenue
					41,000
			41,000
	
6.6	Health
					58,000
			58,000
	
6.7	Human Services
					247,000
			247,000
	
6.8	Veterans Affairs
					16,000
			16,000
	
6.9	Military Affairs
					17,000
			17,000
	
6.10	Corrections
					58,000
			58,000
	
6.11	Transportation
					20,000
			20,000
	
6.12 	(d) Appropriations provided by this section 
6.13 	may not be used to support the hiring of 
6.14 	additional personnel in the Office of the 
6.15 	Governor, to support current personnel in the 
6.16 	office assigned to oversee federal policy or 
6.17 	federal government relations, or to maintain 
6.18 	office space located in the District of 
6.19 	Columbia.

6.20	Sec. 4. STATE AUDITOR

6.21	Subdivision 1.Total Appropriation
 	$
	9,243,000
	$
	9,488,000
	
6.22 	The amounts that may be spent for each 
6.23 	purpose are specified in the following 
6.24 	subdivisions.

6.25	Subd. 2.Audit Practice
 		7,449,000
		7,694,000
	
6.26 	Notwithstanding Minnesota Statutes, section 
6.27 	6.581, subdivision 3, or any other law to the 
6.28 	contrary, the rates included in the state 
6.29 	auditor's schedule of charges for examinations 
6.30 	conducted in fiscal years 2018 and 2019 must 
6.31 	be no greater than the rates included in the 
6.32 	schedule of charges established for 
6.33 	examinations conducted in calendar year 2016.

6.34	Subd. 3.Legal and Special Investigations
 		272,000
		272,000

7.1	Subd. 4.Government Information
 		511,000
		511,000

7.2	Subd. 5.Pension Oversight
 		485,000
		485,000

7.3	Subd. 6.Operations Management
 		305,000
		305,000

7.4	Subd. 7.Constitutional Office
 		221,000
		221,000

7.5	Sec. 5. ATTORNEY GENERAL

7.6	Subdivision 1.Total Appropriation
 	$
	23,265,000
	$
	23,265,000

7.7	Appropriations by Fund
	
7.8		2018
	2019
	
7.9	General
	20,465,000
	20,465,000
	
7.10
7.11	State Government 
Special Revenue
	2,405,000
	2,405,000
	
7.12	Environmental
	145,000
	145,000
	
7.13	Remediation
	250,000
	250,000
	
7.14 	The amounts that may be spent for each 
7.15 	purpose are specified in the following 
7.16 	subdivisions.

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

7.18	Subd. 3.Regulatory Law and Professions
 		5,002,000
		5,002,000

7.19	Appropriations by Fund
	
7.20		2018
	2019
	
7.21	General
	2,223,000
	2,223,000
	
7.22
7.23	State Government 
Special Revenue
	2,384,000
	2,384,000
	
7.24	Environmental
	250,000
	250,000
	
7.25	Remediation
	145,000
	145,000

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

7.27	Appropriations by Fund
	
7.28		2018
	2019
	
7.29	General
	6,136,000
	6,136,000
	
7.30
7.31	State Government 
Special Revenue
	21,000
	21,000

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

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

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

8.4	Sec. 6. SECRETARY OF STATE

8.5	Subdivision 1.Total Appropriation
 	$
	5,419,000
	$
	5,530,000
	
8.6 	The base for fiscal year 2020 is $5,419,000 
8.7 	and the base for fiscal year 2021 is 
8.8 	$5,419,000.
8.9 	The amounts that may be spent for each 
8.10 	purpose are specified in the following 
8.11 	subdivisions.

8.12	Subd. 2.Administration
 		512,000
		525,000

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

8.14	Subd. 4.Business Services
 		1,422,000
		1,174,000

8.15	Subd. 5.Elections
 		2,826,000
		3,155,000

8.16
8.17	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	924,000
	$
	924,000

8.18	Sec. 8. STATE BOARD OF INVESTMENT
 	$
	139,000
	$
	139,000

8.19	Sec. 9. ADMINISTRATIVE HEARINGS

8.20	Subdivision 1.Total Appropriation
 	$
	8,170,000
	$
	8,170,000

8.21	Appropriations by Fund
	
8.22		2018
	2019
	
8.23	General
	383,000
	383,000
	
8.24
8.25	Workers' 
Compensation
	7,787,000
	7,787,000
	
8.26 	The amounts that may be spent for each 
8.27 	purpose are specified in the following 
8.28 	subdivisions.

8.29	Subd. 2.Campaign Violations
 		115,000
		115,000
	
8.30 	These amounts are for the cost of considering 
8.31 	complaints filed under Minnesota Statutes, 
9.1 	section 211B.32. These amounts may be used 
9.2 	in either year of the biennium.

9.3	Subd. 3.Data Practices
 		6,000
		6,000
	
9.4 	These amounts are for the cost of considering 
9.5 	data practices complaints filed under 
9.6 	Minnesota Statutes, section 13.085. These 
9.7 	amounts may be used in either year of the 
9.8 	biennium.

9.9	Subd. 4.Municipal Boundary Adjustments
 		262,000
		262,000

9.10	Sec. 10. OFFICE OF MN.IT SERVICES

9.11	Subdivision 1.Total Appropriation
 	$
	2,622,000
	$
	2,622,000
	
9.12 	The amounts that may be spent for each 
9.13 	purpose are specified in the following 
9.14 	subdivisions.
9.15 	The state chief information officer must 
9.16 	prioritize use of appropriations provided by 
9.17 	this section to enhance cybersecurity across 
9.18 	state government.

9.19	Subd. 2.State Chief Information Officer
 		1,316,000
		1,316,000
	
9.20 	The commissioner of management and budget 
9.21 	is authorized to provide cash flow assistance 
9.22 	of up to $110,000,000 from the special 
9.23 	revenue fund or other statutory general funds 
9.24 	as defined in Minnesota Statutes, section 
9.25 	16A.671, subdivision 3, paragraph (a), to the 
9.26 	Office of MN.IT Services for the purpose of 
9.27 	managing revenue and expenditure 
9.28 	differences. These funds shall be repaid with 
9.29 	interest by the end of the fiscal year 2019 
9.30 	closing period.
9.31 	During the biennium ending June 30, 2019, 
9.32 	the Office of MN.IT Services must not charge 
9.33 	fees to a public noncommercial educational 
10.1 	television broadcast station eligible for funding 
10.2 	under Minnesota Statutes, chapter 129D, for 
10.3 	access to the state broadcast infrastructure. If 
10.4 	the access fees not charged to public 
10.5 	noncommercial educational television 
10.6 	broadcast stations total more than $400,000 
10.7 	for the biennium, the office may charge for 
10.8 	access fees in excess of these amounts.

10.9	Subd. 3.Geospatial Information Office
 		871,000
		871,000

10.10	Subd. 4.Enterprise IT Security
 		435,000
		435,000

10.11	Sec. 11. ADMINISTRATION

10.12	Subdivision 1.Total Appropriation
 	$
	19,984,000
	$
	19,584,000
	
10.13 	The amounts that may be spent for each 
10.14 	purpose are specified in the following 
10.15 	subdivisions.

10.16	Subd. 2.Government and Citizen Services
 		7,013,000
		7,013,000
	
10.17 	This appropriation includes funds for 
10.18 	information technology project services and 
10.19 	support subject to the provisions of Minnesota 
10.20 	Statutes, section 16E.0466. Any ongoing 
10.21 	information technology costs must be 
10.22 	incorporated into the service level agreement 
10.23 	and must be paid to the Office of MN.IT 
10.24 	Services by the commissioner of 
10.25 	administration under the rates and mechanism 
10.26 	specified in that agreement.
10.27 	Appropriations provided by this section may 
10.28 	not be used to fund continuous improvement 
10.29 	initiatives, including the Office of Continuous 
10.30 	Improvement (LEAN).
10.31 	Council on Developmental Disabilities.
10.32 	$74,000 the first year and $74,000 the second 
11.1 	year are for the Council on Developmental 
11.2 	Disabilities.
11.3 	Olmstead Plan. $148,000 each year is for the 
11.4 	Olmstead plan.
11.5 	Materials Management. $2,139,000 each 
11.6 	year is for materials management.
11.7 	Plant Management. $390,000 each year is 
11.8 	for plant management.
11.9 	$7,500,000 the first year of the balance in the 
11.10 	facility repair and replacement account in the 
11.11 	special revenue fund is canceled to the general 
11.12 	fund. These amounts are in addition to 
11.13 	amounts transferred under Minnesota Statutes, 
11.14 	section 16B.24, subdivision 5, paragraph (d).
11.15 	Real Estate and Construction Services.
11.16 	$2,198,000 each year is for real estate and 
11.17 	construction services.
11.18 	Enterprise Real Property. $601,000 each 
11.19 	year is for enterprise real property.
11.20 	State Agency Accommodation 
11.21 	Reimbursement. $200,000 the first year and 
11.22 	$200,000 the second year are credited to the 
11.23 	accommodation account established in 
11.24 	Minnesota Statutes, section 16B.4805.
11.25 	Community Services. $1,263,000 each year 
11.26 	is for community services.
11.27 	(a) $192,000 the first year and $192,000 the 
11.28 	second year are for the state archaeologist.
11.29 	(b) $468,000 the first year and $468,000 the 
11.30 	second year are for information policy 
11.31 	analysis.
12.1 	(c) $487,000 the first year and $487,000 the 
12.2 	second year are for the state demographer.
12.3 	(d) $116,000 the first year and $116,000 the 
12.4 	second year are for the Office of Grants 
12.5 	Management.

12.6	Subd. 3.Strategic Management Services
 		1,794,000
		1,794,000
	
12.7 	Executive Leadership/Partnerships.
12.8 	$528,000 each year is for executive 
12.9 	leadership/partnerships.
12.10 	School Trust Lands Director. $185,000 each 
12.11 	year is for school trust lands director.
12.12 	Financial Management and Reporting.
12.13 	$706,000 each year is for financial 
12.14 	management and reporting.
12.15 	Human Resources. $375,000 each year is for 
12.16 	human resources.

12.17	Subd. 4.Fiscal Agent
 		11,177,000
		10,777,000
	
12.18 	In-Lieu of Rent. $8,158,000 the first year and 
12.19 	$8,158,000 the second year are for space costs 
12.20 	of the legislature and veterans organizations, 
12.21 	ceremonial space, and statutorily free space.
12.22 	Public Television. (a) $1,550,000 the first 
12.23 	year and $1,550,000 the second year are for 
12.24 	matching grants for public television.
12.25 	(b) $250,000 the first year and $250,000 the 
12.26 	second year are for public television 
12.27 	equipment grants under Minnesota Statutes, 
12.28 	section 129D.13.
12.29 	(c) The commissioner of administration must 
12.30 	consider the recommendations of the 
12.31 	Minnesota Public Television Association 
12.32 	before allocating the amounts appropriated in 
13.1 	paragraphs (a) and (b) for equipment or 
13.2 	matching grants.
13.3 	Public Radio. (a) $392,000 the first year and 
13.4 	$392,000 the second year are for community 
13.5 	service grants to public educational radio 
13.6 	stations. This appropriation may be used to 
13.7 	disseminate emergency information in foreign 
13.8 	languages.
13.9 	(b) $117,000 the first year and $117,000 the 
13.10 	second year are for equipment grants to public 
13.11 	educational radio stations. This appropriation 
13.12 	may be used for the repair, rental, and 
13.13 	purchase of equipment including equipment 
13.14 	under $500.
13.15 	(c) $310,000 the first year and $310,000 the 
13.16 	second year are for equipment grants to 
13.17 	Minnesota Public Radio, Inc., including 
13.18 	upgrades to Minnesota's Emergency Alert and 
13.19 	AMBER Alert Systems.
13.20 	(d) $400,000 the first year is for a grant to 
13.21 	Minnesota Public Radio, Inc. for upgrades to 
13.22 	Minnesota's Emergency Alert and AMBER 
13.23 	Alert Systems.
13.24 	(e) The appropriations in paragraphs (a) to (d) 
13.25 	may not be used for indirect costs claimed by 
13.26 	an institution or governing body.
13.27 	(f) The commissioner of administration must 
13.28 	consider the recommendations of the 
13.29 	Association of Minnesota Public Educational 
13.30 	Radio Stations before awarding grants under 
13.31 	Minnesota Statutes, section 129D.14, using 
13.32 	the appropriations in paragraphs (a) and (b). 
13.33 	No grantee is eligible for a grant unless they 
13.34 	are a member of the Association of Minnesota 
14.1 	Public Educational Radio Stations on or before 
14.2 	July 1, 2017.
14.3 	(g) Any unencumbered balance remaining the 
14.4 	first year for grants to public television or 
14.5 	public radio stations does not cancel and is 
14.6 	available for the second year.

14.7
14.8	Sec. 12. CAPITOL AREA ARCHITECTURAL 
AND PLANNING BOARD
 	$
	345,000
	$
	345,000

14.914.10
	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	17,920,000
	$
	18,320,000

14.11	Subdivision 1.Appropriations
 					
14.12 	The amounts that may be spent for each 
14.13 	purpose are specified in the following 
14.14 	subdivisions.
14.15 	This appropriation includes funds for 
14.16 	information technology project services and 
14.17 	support subject to the provisions of Minnesota 
14.18 	Statutes, section 16E.0466. Any ongoing 
14.19 	information technology costs must be 
14.20 	incorporated into the service level agreement 
14.21 	and must be paid to the Office of MN.IT 
14.22 	Services by the commissioner of management 
14.23 	and budget under the rates and mechanism 
14.24 	specified in that agreement.

14.25	Subd. 2.Accounting Services
 		3,758,000
		3,958,000

14.26	Subd. 3.Budget Services
 		2,416,000
		2,616,000

14.27	Subd. 4.Economic Analysis
 		424,000
		424,000

14.28	Subd. 5.Debt Management
 		367,000
		367,000

14.29
14.30	Subd. 6.Enterprise Communications and 
Planning
 		830,000
		830,000

14.31	Subd. 7.Enterprise Human Resources
 		2,681,000
		2,681,000
	
14.32 	Appropriations provided by this section or 
14.33 	transferred to the commissioner from another 
15.1 	agency may not be used to support a statewide 
15.2 	executive recruiting program.

15.3	Subd. 8.Labor Relations
 		868,000
		868,000

15.4	Subd. 9.Agency Administration
 		6,576,000
		6,576,000
	
15.5 	No later than June 30, 2018, the commissioner 
15.6 	must credit at least $1,000,000 to the general 
15.7 	fund based on savings realized through 
15.8 	implementation of the employee gainsharing 
15.9 	program required by Minnesota Statutes, 
15.10 	section 16A.90. If a credit of at least this 
15.11 	amount has not been made to the general fund 
15.12 	as of that date, the appropriation provided in 
15.13 	this subdivision for fiscal year 2019 is reduced 
15.14 	in an amount equal to the difference between 
15.15 	the amount actually credited to the general 
15.16 	fund and the total credit required by this 
15.17 	paragraph.

15.18	Sec. 14. REVENUE

15.19	Subdivision 1.Total Appropriation
 	$
	141,485,000
	$
	141,310,000

15.20	Appropriations by Fund
	
15.21		2018
	2019
	
15.22	General
	137,249,000
	137,074,000
	
15.23	Health Care Access
	1,749,000
	1,749,000
	
15.24
15.25	Highway User Tax 
Distribution
	2,184,000
	2,184,000
	
15.26	Environmental
	303,000
	303,000
	
15.27 	Notwithstanding the appropriations provided 
15.28 	by this section, the amounts allocated for tax 
15.29 	compliance activities of the department must 
15.30 	be no less than the amounts allocated for those 
15.31 	activities during fiscal year 2017, and the 
15.32 	commissioner must prioritize processing 
15.33 	personal income tax returns, taxpayer fraud 
15.34 	prevention, and assuring that taxpayer refunds 
16.1 	are not delayed when determining spending 
16.2 	plans for each of the activities in this section.
16.3 	This appropriation includes funds for 
16.4 	information technology project services and 
16.5 	support subject to the provisions of Minnesota 
16.6 	Statutes, section 16E.0466. Any ongoing 
16.7 	information technology costs must be 
16.8 	incorporated into the service level agreement 
16.9 	and must be paid to the Office of MN.IT 
16.10 	Services by the commissioner of revenue 
16.11 	under the rates and mechanism specified in 
16.12 	that agreement.

16.13	Subd. 2.Tax System Management
 		114,128,000
		113,953,000

16.14	Appropriations by Fund
	
16.15		2018
	2019
	
16.16	General
	109,892,000
	109,717,000
	
16.17	Health Care Access
	1,749,000
	1,749,000
	
16.18
16.19	Highway User Tax 
Distribution
	2,184,000
	2,184,000
	
16.20	Environmental
	303,000
	303,000

16.21	(a) Operations Support
					
16.22	General
				9,356,000
		9,356,000
	
16.23	Health Care Access
				126,000
		126,000

16.24	(b) Appeals, Legal Services, and Tax Research
					
16.25	General
				6,932,000
		6,932,000
	
16.26	Health Care Access
				113,000
		113,000

16.27	(c) Payment and Return Processing
					
16.28	General
				12,927,000
		12,927,000
	
16.29	Health Care Access
				51,000
		51,000
	
16.30
16.31	Highway User Tax 
Distribution
				343,000
		343,000

16.32	(d) Administration of State Taxes
					
16.33	General
				54,904,000
		54,729,000
	
16.34	Health Care Access
				1,407,000
		1,407,000
	
16.35
16.36	Highway User Tax 
Distribution
				1,621,000
		1,621,000
	
17.1	Environmental
				303,000
		303,000
	
17.2 	(1) $15,000 from the general fund in the first 
17.3 	year is for preparing and submitting a 
17.4 	supplemental 2017 tax incidence report 
17.5 	meeting the requirements of Minnesota 
17.6 	Statutes, section 270C.13, subdivision 1, as 
17.7 	amended by this act. The supplemental report 
17.8 	must be completed and submitted no later than 
17.9 	January 2, 2018.
17.10 	(2) $160,000 from the general fund in the first 
17.11 	year is for administration of a first-time home 
17.12 	buyer savings account program. This 
17.13 	appropriation is canceled to the general fund 
17.14 	if income tax provisions related to first-time 
17.15 	home buyer savings accounts are not enacted 
17.16 	by law at the 2017 regular or special 
17.17 	legislative session.

17.18
17.19	(e) Technology Development, Implementation, 
and Support
					
17.20	General
				21,781,000
		21,781,000
	
17.21	Health Care Access
				52,000
		52,000
	
17.22
17.23	Highway User Tax 
Distribution
				220,000
		220,000

17.24	(f) Property Tax Administration and State Aid
					
17.25	General
				3,992,000
		3,992,000

17.26	Subd. 3.Debt Collection Management
 		27,357,000
		27,357,000

17.27	Sec. 15. HUMAN RIGHTS
 	$
	3,954,000
	$
	3,954,000

17.28	Sec. 16. GAMBLING CONTROL
 	$
	3,422,000
	$
	3,457,000
	
17.29 	These appropriations are from the lawful 
17.30 	gambling regulation account in the special 
17.31 	revenue fund.

17.32	Sec. 17. RACING COMMISSION
 	$
	845,000
	$
	908,000
	
18.1 	These appropriations are from the racing and 
18.2 	card playing regulation accounts in the special 
18.3 	revenue fund.

18.4	Sec. 18. STATE LOTTERY
 					
18.5 	Notwithstanding Minnesota Statutes, section 
18.6 	349A.10, subdivision 3, the State Lottery's 
18.7 	operating budget must not exceed $32,500,000 
18.8 	in fiscal year 2018 and $33,000,000 in fiscal 
18.9 	year 2019.

18.10	Sec. 19. AMATEUR SPORTS COMMISSION
 	$
	300,000
	$
	300,000

18.11
18.12	Sec. 20. COUNCIL ON MINNESOTANS OF 
AFRICAN HERITAGE
 	$
	401,000
	$
	401,000

18.13	Sec. 21. COUNCIL ON LATINO AFFAIRS
 	$
	386,000
	$
	386,000

18.14
18.15	Sec. 22. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	364,000
	$
	364,000

18.16	Sec. 23. INDIAN AFFAIRS COUNCIL
 	$
	576,000
	$
	576,000

18.17
18.18	Sec. 24. MINNESOTA HISTORICAL 
SOCIETY

18.19	Subdivision 1.Total Appropriation
 	$
	22,893,000
	$
	22,893,000
	
18.20 	The amounts that may be spent for each 
18.21 	purpose are specified in the following 
18.22 	subdivisions.

18.23	Subd. 2.Operations and Programs
 		22,572,000
		22,572,000
	
18.24 	$750,000 the first year and $750,000 the 
18.25 	second year are for digital preservation and 
18.26 	access, including planning and implementation 
18.27 	of a program to preserve and make available 
18.28 	resources related to Minnesota history. These 
18.29 	are onetime appropriations.

18.30	Subd. 3.Fiscal Agent

19.1	(a) Global Minnesota
		39,000
		39,000

19.2	(b) Minnesota Air National Guard Museum
		17,000
		17,000

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

19.4	(d) Farmamerica
		115,000
		115,000

19.5	(e) Hockey Hall of Fame
		100,000
		100,000
	
19.6 	Any unencumbered balance remaining in this 
19.7 	subdivision the first year does not cancel but 
19.8 	is available for the second year of the 
19.9 	biennium.

19.10	Sec. 25. BOARD OF THE ARTS

19.11	Subdivision 1.Total Appropriation
 	$
	7,530,000
	$
	7,530,000
	
19.12 	The amounts that may be spent for each 
19.13 	purpose are specified in the following 
19.14 	subdivisions.

19.15	Subd. 2.Operations and Services
 		591,000
		591,000

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

19.17	Subd. 4.Regional Arts Councils
 		2,139,000
		2,139,000
	
19.18 	Any unencumbered balance remaining in this 
19.19 	section the first year does not cancel, but is 
19.20 	available for the second year.
19.21 	Money appropriated in this section and 
19.22 	distributed as grants may only be spent on 
19.23 	projects located in Minnesota. A recipient of 
19.24 	a grant funded by an appropriation in this 
19.25 	section must not use more than five percent 
19.26 	of the total grant for costs related to travel 
19.27 	outside the state of Minnesota.

19.28	Sec. 26. MINNESOTA HUMANITIES CENTER
 	$
	950,000
	$
	950,000
	
19.29 	(a) $325,000 each year is for the Healthy 
19.30 	Eating, Here at Home program under 
19.31 	Minnesota Statutes, section 138.912. No more 
20.1 	than three percent of the appropriation may 
20.2 	be used for the nonprofit administration of this 
20.3 	program.
20.4 	(b) $250,000 each year is for grants to the 
20.5 	Veterans Defense Project. Grants must be used 
20.6 	to support, through education and outreach, 
20.7 	military veterans who are involved with the 
20.8 	criminal justice system. These are onetime 
20.9 	appropriations.

20.10	Sec. 27. BOARD OF ACCOUNTANCY
 	$
	641,000
	$
	641,000

20.11
20.12
20.13
20.14	Sec. 28. BOARD OF ARCHITECTURE 
ENGINEERING, LAND SURVEYING, 
LANDSCAPE ARCHITECTURE, 
GEOSCIENCE, AND INTERIOR DESIGN
 	$
	794,000
	$
	794,000

20.15
20.16	Sec. 29. BOARD OF COSMETOLOGIST 
EXAMINERS
 	$
	1,346,000
	$
	1,346,000
	
20.17 	The executive director must report quarterly 
20.18 	to the chairs and ranking minority members 
20.19 	of the committees in the house of 
20.20 	representatives and senate with jurisdiction 
20.21 	over state government finance on the number 
20.22 	of inspections conducted by license type in 
20.23 	the past quarter, number and percent of total 
20.24 	salons and schools inspected within the last 
20.25 	year, total number of licensees by type, and 
20.26 	the number of inspectors employed by the 
20.27 	board. The first report must be submitted by 
20.28 	July 15, 2017.

20.29	Sec. 30. BOARD OF BARBER EXAMINERS
 	$
	325,000
	$
	325,000

20.30
20.31	Sec. 31. GENERAL CONTINGENT 
ACCOUNTS
 	$
	750,000
	$
	500,000

20.32	Appropriations by Fund
	
20.33		2018
	2019
	
21.1	General
	250,000
	-0-
	
21.2
21.3	State Government 
Special Revenue
	400,000
	400,000
	
21.4
21.5	Workers' 
Compensation
	100,000
	100,000
	
21.6 	(a) The appropriations in this section may only 
21.7 	be spent with the approval of the governor 
21.8 	after consultation with the Legislative 
21.9 	Advisory Commission pursuant to Minnesota 
21.10 	Statutes, section 3.30.
21.11 	(b) If an appropriation in this section for either 
21.12 	year is insufficient, the appropriation for the 
21.13 	other year is available for it.
21.14 	(c) If a contingent account appropriation is 
21.15 	made in one fiscal year, it should be 
21.16 	considered a biennial appropriation.

21.17	Sec. 32. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
21.18 	These appropriations are to be spent by the 
21.19 	commissioner of management and budget 
21.20 	according to Minnesota Statutes, section 
21.21 	3.736, subdivision 7. If the appropriation for 
21.22 	either year is insufficient, the appropriation 
21.23 	for the other year is available for it.

21.24
21.25	Sec. 33. MINNESOTA STATE RETIREMENT 
SYSTEM

21.26	Subdivision 1.Total Appropriation
 	$
	14,893,000
	$
	15,071,000
	
21.27 	The amounts that may be spent for each 
21.28 	purpose are specified in the following 
21.29 	subdivisions.

21.30
21.31	Subd. 2.Combined Legislators and 
Constitutional Officers Retirement Plan
 		8,893,000
		9,071,000
	
21.32 	Under Minnesota Statutes, sections 3A.03, 
21.33 	subdivision 2; 3A.04, subdivisions 3 and 4; 
21.34 	and 3A.115.
22.1 	If an appropriation in this section for either 
22.2 	year is insufficient, the appropriation for the 
22.3 	other year is available for it.

22.4	Subd. 3.Judges Retirement Plan
 		6,000,000
		6,000,000
	
22.5 	For transfer to the judges retirement fund 
22.6 	under Minnesota Statutes, section 490.123. 
22.7 	$6,000,000 each fiscal year is included in the 
22.8 	base for fiscal years 2020 and 2021. This 
22.9 	transfer continues each fiscal year until the 
22.10 	judges retirement plan reaches 100 percent 
22.11 	funding as determined by an actuarial 
22.12 	valuation prepared according to Minnesota 
22.13 	Statutes, section 356.214.

22.14
22.15	Sec. 34. PUBLIC EMPLOYEES RETIREMENT 
ASSOCIATION
 	$
	6,000,000
	$
	6,000,000
	
22.16 	General employees retirement plan of the 
22.17 	Public Employees Retirement Association 
22.18 	relating to the merged former MERF division.
22.19 	State payments from the general fund to the 
22.20 	Public Employees Retirement Association on 
22.21 	behalf of the former MERF division account 
22.22 	are $6,000,000 on September 15, 2017, and 
22.23 	$6,000,000 on September 15, 2018.
22.24 	These amounts are estimated to be needed 
22.25 	under Minnesota Statutes, section 353.505.

22.26
22.27	Sec. 35. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	29,831,000
	$
	29,831,000
	
22.28 	The amounts estimated to be needed are as 
22.29 	follows:
22.30 	Special Direct State Aid. $27,331,000 the 
22.31 	first year and $27,331,000 the second year are 
22.32 	for special direct state aid authorized under 
22.33 	Minnesota Statutes, section 354.436.
23.1 	Special Direct State Matching Aid. 
23.2 	$2,500,000 the first year and $2,500,000 the 
23.3 	second year are for special direct state 
23.4 	matching aid authorized under Minnesota 
23.5 	Statutes, section 354.435.

23.6
23.7	Sec. 36. ST. PAUL TEACHERS RETIREMENT 
FUND
 	$
	9,827,000
	$
	9,827,000
	
23.8 	The amounts estimated to be needed for 
23.9 	special direct state aid to the first class city 
23.10 	teachers retirement fund association authorized 
23.11 	under Minnesota Statutes, section 354A.12, 
23.12 	subdivisions 3a and 3c.

23.13	Sec. 37. MILITARY AFFAIRS

23.14	Subdivision 1.Total Appropriation
 	$
	25,616,000
	$
	19,616,000
	
23.15 	The amounts that may be spent for each 
23.16 	purpose are specified in the following 
23.17 	subdivisions.

23.18	Subd. 2.Maintenance of Training Facilities
 		9,661,000
		9,661,000
	
23.19 	Of the funds transferred to maintenance of 
23.20 	training facilities in Laws 2015, chapter 77, 
23.21 	article 1, section 36, subdivision 4, $2,000,000 
23.22 	in fiscal year 2017 may be transferred to the 
23.23 	enlistment incentives appropriation to address 
23.24 	a projected fiscal year 2017 deficit in the 
23.25 	enlistment incentives program.

23.26	Subd. 3.General Support
 		3,067,000
		3,067,000

23.27	Subd. 4.Enlistment Incentives
 		12,888,000
		6,888,000
	
23.28 	The appropriations in this subdivision are 
23.29 	available until expended, except that any 
23.30 	unspent amounts allocated to a program 
23.31 	otherwise supported by this appropriation are 
23.32 	canceled to the general fund upon receipt of 
24.1 	federal funds in the same amount to support 
24.2 	administration of that program.
24.3 	If appropriations for either year of the 
24.4 	biennium are insufficient, the appropriation 
24.5 	from the other year is available. The 
24.6 	appropriations for enlistment incentives are 
24.7 	available until June 30, 2021.

24.8	Sec. 38. VETERANS AFFAIRS

24.9	Subdivision 1.Total Appropriation
 	$
	84,029,000
	$
	74,029,000
	
24.10 	The amounts that may be spent for each 
24.11 	purpose are specified in the following 
24.12 	subdivisions.

24.13	Subd. 2.Veterans Programs and Services
 		16,811,000
		16,811,000
	
24.14 	Veterans Service Organizations. $353,000 
24.15 	each year is for grants to the following 
24.16 	congressionally chartered veterans service 
24.17 	organizations as designated by the 
24.18 	commissioner: Disabled American Veterans, 
24.19 	Military Order of the Purple Heart, the 
24.20 	American Legion, Veterans of Foreign Wars, 
24.21 	Vietnam Veterans of America, AMVETS, and 
24.22 	Paralyzed Veterans of America. This funding 
24.23 	must be allocated in direct proportion to the 
24.24 	funding currently being provided by the 
24.25 	commissioner to these organizations.
24.26 	Minnesota Assistance Council for Veterans.
24.27 	$750,000 each year is for a grant to the 
24.28 	Minnesota Assistance Council for Veterans 
24.29 	to provide assistance throughout Minnesota 
24.30 	to veterans and their families who are 
24.31 	homeless or in danger of homelessness, 
24.32 	including assistance with the following:
24.33 	(1) utilities;
25.1 	(2) employment; and
25.2 	(3) legal issues.
25.3 	The assistance authorized under this paragraph 
25.4 	must be made only to veterans who have 
25.5 	resided in Minnesota for 30 days prior to 
25.6 	application for assistance and according to 
25.7 	other guidelines established by the 
25.8 	commissioner. In order to avoid duplication 
25.9 	of services, the commissioner must ensure that 
25.10 	this assistance is coordinated with all other 
25.11 	available programs for veterans.
25.12 	Honor Guards. $200,000 each year is for 
25.13 	compensation for honor guards at the funerals 
25.14 	of veterans under Minnesota Statutes, section 
25.15 	197.231.
25.16 	Minnesota GI Bill. $200,000 each year is for 
25.17 	the costs of administering the Minnesota GI 
25.18 	Bill postsecondary educational benefits, 
25.19 	on-the-job training, and apprenticeship 
25.20 	program under Minnesota Statutes, section 
25.21 	197.791.
25.22 	Gold Star Program. $100,000 each year is 
25.23 	for administering the Gold Star Program for 
25.24 	surviving family members of deceased 
25.25 	veterans.
25.26 	County Veterans Service Office. $1,100,000 
25.27 	each year is for funding the County Veterans 
25.28 	Service Office grant program under Minnesota 
25.29 	Statutes, section 197.608.
25.30 	Veterans Journey Home. $350,000 each year 
25.31 	is for grants to the veterans Journey Home 
25.32 	program. Grants must support the development 
25.33 	of new or rehabilitated affordable housing 
25.34 	dedicated for low-to-moderate income 
26.1 	veterans and their families. These are onetime 
26.2 	appropriations.

26.3	Subd. 3.Veterans Health Care
 		67,218,000
		57,218,000
	
26.4 	The general fund appropriations made to the 
26.5 	department may be transferred to a veterans 
26.6 	homes special revenue account in the special 
26.7 	revenue fund in the same manner as other 
26.8 	receipts are deposited according to Minnesota 
26.9 	Statutes, section 198.34, and are appropriated 
26.10 	to the department for the operation of veterans 
26.11 	homes facilities and programs.
26.12 	No later than January 15, 2018, the 
26.13 	commissioner must submit a report to the 
26.14 	legislative committees with jurisdiction over 
26.15 	veterans affairs and state government finance 
26.16 	on reserve amounts maintained in the veterans 
26.17 	homes special revenue account. The report 
26.18 	must detail current and historical amounts 
26.19 	maintained as a reserve, and uses of those 
26.20 	amounts. The report must also include data on 
26.21 	the utilization of existing veterans homes, 
26.22 	including current and historical bed capacity 
26.23 	and usage, staffing levels and staff vacancy 
26.24 	rates, and staff-to-resident ratios.
26.25 	New Veterans Homes. $10,000,000 in the 
26.26 	first year is for planning, design, construction, 
26.27 	and operation of new veterans homes, and any 
26.28 	other requirements necessary for federal 
26.29 	approval of those homes. The commissioner 
26.30 	must select locations for construction of new 
26.31 	homes based on geographic need, consistent 
26.32 	with any guidance or requirements provided 
26.33 	by federal law. This is a onetime appropriation 
26.34 	and is available until spent.
27.1 	Maximize Federal Reimbursements. The 
27.2 	department will seek opportunities to 
27.3 	maximize federal reimbursements of 
27.4 	Medicare-eligible expenses and will provide 
27.5 	annual reports to the commissioner of 
27.6 	management and budget on the federal 
27.7 	Medicare reimbursements received. 
27.8 	Contingent upon future federal Medicare 
27.9 	receipts, reductions to the homes' general fund 
27.10 	appropriation may be made.

27.11 	Sec. 39. PRESERVATION OF PROGRAMS AND SERVICES.
 27.12 	To the extent that appropriations provided by this article are less than the amounts 
27.13 	appropriated for fiscal year 2017, the affected constitutional office, agency, board, or 
27.14 	commission must prioritize reductions to its central administration and general operations 
27.15 	in absorbing those reductions. Costs for programs or services that are not provided a specific 
27.16 	appropriation in this act must be funded through appropriations to the constitutional office, 
27.17 	agency, board, or commission that are not designated for another purpose. Unless otherwise 
27.18 	specified, reductions must not be made to programs or services of the constitutional office, 
27.19 	agency, board, or commission that are provided directly to members of the public.

27.20 	Sec. 40. APPROPRIATION CANCELLATIONS.
 27.21 	All unspent funds estimated to be $7,166,000, as provided in Minnesota Statutes, section 
27.22 	240A.085, under Laws 2016, chapter 189, article 13, section 56, are canceled to the general 
27.23 	fund on June 30, 2017.

27.24 	Sec. 41. SAVINGS FROM INSURANCE OPT OUT; APPROPRIATION 
27.25 	REDUCTION FOR EXECUTIVE AGENCIES.
 27.26 	The commissioner of management and budget must reduce general fund appropriations 
27.27 	to executive agencies, including constitutional offices, for agency operations for the biennium 
27.28 	ending June 30, 2019, by $4,394,000 due to savings from permitting employees to opt out 
27.29 	of insurance coverage under the state employee group insurance coverage.
27.30 	If savings obtained through permitting employees to opt out of insurance coverage under 
27.31 	the state employee group insurance coverage yield savings in nongeneral funds other than 
27.32 	those established in the state constitution or protected by federal law, the commissioner of 
28.1 	management and budget may transfer the amount of savings to the general fund. The amount 
28.2 	transferred to the general fund from other funds reduces the required general fund reduction 
28.3 	in this section. Reductions made in 2019 must be reflected as reductions in agency base 
28.4 	budgets for fiscal years 2020 and 2021. The commissioner of management and budget must 
28.5 	report to the chairs and ranking minority members of the committees in the senate Finance 
28.6 	Committee and the house of representatives Ways and Means Committee regarding the 
28.7 	amount of reductions in spending by each agency under this section.

28.8 	Sec. 42. SAVINGS; APPROPRIATION REDUCTIONS FOR INFORMATION 
28.9 	TECHNOLOGY CONSOLIDATION.
 28.10 	(a) The commissioner of management and budget must reduce general fund appropriations 
28.11 	to agencies subject to the executive branch information technology consolidation required 
28.12 	by Laws 2011, First Special Session chapter 10, article 4, by at least $3,000,000 for the 
28.13 	biennium ending June 30, 2019, to reflect savings on enterprise services personnel costs 
28.14 	resulting from the consolidation.
28.15 	(b) If savings obtained through the completion of information technology consolidation 
28.16 	yield savings in nongeneral funds other than those established in the state constitution or 
28.17 	protected by federal law, the commissioner may transfer the amount of savings to the general 
28.18 	fund. The amount transferred to the general fund from other funds reduces the required 
28.19 	general fund reduction in this section. Reductions made in 2019 must be reflected as 
28.20 	reductions in agency base budgets for fiscal years 2020 and 2021.

28.21 	Sec. 43. REDUCTION IN PROFESSIONAL AND TECHNICAL SERVICES 
28.22 	CONTRACT EXPENDITURES.
 28.23 	During the biennium ending June 30, 2019, the commissioner of management and budget 
28.24 	must reduce planned general fund expenditures by executive branch state agencies on 
28.25 	contracts for professional or technical services by at least $2,255,000. The commissioner 
28.26 	must allocate this reduction among each executive branch state agency. For purposes of 
28.27 	this section, "professional or technical services" has the meaning given in Minnesota Statutes, 
28.28 	section 16C.08, subdivision 1, and "executive branch state agency" has the meaning given 
28.29 	in Minnesota Statutes, section 16A.011, subdivision 12a, and includes the Minnesota State 
28.30 	Colleges and Universities.

29.1 	Sec. 44. BASE BUDGET REPORT.
 29.2 	No later than October 15, 2017, the commissioners of management and budget, revenue, 
29.3 	and veterans affairs must each submit a report to the chairs and ranking minority members 
29.4 	of the legislative committees with jurisdiction over state government finance that detail the 
29.5 	agency's base budget, by fiscal year. At a minimum, the report must include:
29.6 	(1) a description of each appropriation rider enacted for the agency, and the year the 
29.7 	rider was first enacted in a substantially similar form;
29.8 	(2) a description of the agency's use of appropriated funds that are not directed by a 
29.9 	rider, including an itemization of programs that appeared in a rider in a prior biennium and 
29.10 	continue to receive funding despite no longer appearing in a rider; and
29.11 	(3) an itemization of any appropriations provided to the agency under a provision of 
29.12 	statute or the state constitution.

29.13 	ARTICLE 2
29.14 	STATE GOVERNMENT OPERATIONS

29.15 	Section 1. [2.92] DISTRICTING PRINCIPLES.
29.16 		Subdivision 1.Applicability. The principles in this section apply to legislative and 
29.17 	congressional districts.
29.18 		Subd. 2.Nesting. A representative district may not be divided in the formation of a 
29.19 	senate district.
29.20 		Subd. 3.Equal population. (a) Legislative districts must be substantially equal in 
29.21 	population. The population of a legislative district must not deviate from the ideal by more 
29.22 	than 0.5 percent, plus or minus.
29.23 	(b) Congressional districts must be as nearly equal in population as practicable.
29.24 		Subd. 4.Contiguity; compactness. The districts must be composed of convenient 
29.25 	contiguous territory. To the extent consistent with the other principles in this section, districts 
29.26 	should be compact. Contiguity by water is sufficient if the water is not a serious obstacle 
29.27 	to travel within the district. Point contiguity is not sufficient.
29.28 		Subd. 5.Numbering. (a) Legislative districts must be numbered in a regular series, 
29.29 	beginning with house district 1A in the northwest corner of the state and proceeding across 
29.30 	the state from west to east, north to south, but bypassing the 11-county metropolitan area 
29.31 	until the southeast corner has been reached; then to the 11-county metropolitan area. In a 
30.1 	county that includes more than one whole senate district, the districts must be numbered 
30.2 	consecutively.
30.3 	(b) Congressional district numbers must begin with district one in the southeast corner 
30.4 	of the state and end with district eight in the northeast corner of the state.
30.5 		Subd. 6.Minority representation. (a) The dilution of racial or ethnic minority voting 
30.6 	strength is contrary to the laws of the United States and the state of Minnesota. These 
30.7 	principles must not be construed to supersede any provision of the Voting Rights Act of 
30.8 	1965, as amended.
30.9 	(b) A redistricting plan must not have the intent or effect of dispersing or concentrating 
30.10 	minority population in a manner that prevents minority communities from electing their 
30.11 	candidates of choice.
30.12 		Subd. 7.Minor civil divisions.  (a) A county, city, or town must not be unduly divided 
30.13 	unless required to meet equal population requirements or to form districts composed of 
30.14 	convenient, contiguous territory.
30.15 	(b) A county, city, or town is not unduly divided in the formation of a legislative or 
30.16 	congressional district if:
30.17 	(1) the division occurs because a portion of a city or town is noncontiguous with another 
30.18 	portion of the same city or town; or
30.19 	(2) despite the division, the known population of any affected county, city, or town 
30.20 	remains wholly located within a single district.
30.21 		Subd. 8.Preserving communities of interest. (a) Districts should attempt to preserve 
30.22 	identifiable communities of interest where that can be done in compliance with the principles 
30.23 	under this section.
30.24 	(b) For purposes of this subdivision, "communities of interest" means recognizable areas 
30.25 	with similarities of interests including but not limited to racial, ethnic, geographic, social, 
30.26 	or cultural interests.
30.27 		Subd. 9.Incumbents. The districts must not be drawn for the purpose of protecting or 
30.28 	defeating an incumbent.
30.29 		Subd. 10.Data to be used. (a) The geographic areas and population counts used in 
30.30 	maps, tables, and legal descriptions of the districts must be those used by the Geographic 
30.31 	Information Systems Office of the Legislative Coordinating Commission. The population 
30.32 	counts shall be the block population counts provided to the state under Public Law 94-171 
31.1 	after each decennial census, subject to correction of any errors acknowledged by the United 
31.2 	States Census Bureau.
31.3 	(b) Nothing in this subdivision prohibits the use of additional data, as determined by the 
31.4 	legislature.
31.5 		Subd. 11.Consideration of plans. A redistricting plan must not be considered for 
31.6 	adoption by the senate or house of representatives until a block equivalency file showing 
31.7 	the district to which each census block has been assigned, in a form prescribed by the director 
31.8 	of the Geographic Information Systems Office, has been filed with the director.
31.9 		Subd. 12.Priority of principles.  Where it is not possible to fully comply with the 
31.10 	principles contained in subdivisions 2 to 9, a redistricting plan must give priority to those 
31.11 	principles in the order in which they are listed, except to the extent that doing so would 
31.12 	violate federal or state law.

31.13 	EFFECTIVE DATE.  This section is effective the day following final enactment and 
31.14 	applies to any plan for districts enacted or established for use on or after that date.

31.15 	Sec. 2. Minnesota Statutes 2016, section 3.305, subdivision 1, is amended to read:
31.16 		Subdivision 1.Definitions. (a) "Legislative commission" means a joint commission, 
31.17 	committee, or other entity in the legislative branch composed exclusively of members of 
31.18 	the senate and the house of representatives.
31.19 	(b) "Joint offices" means the Revisor of Statutes, Legislative Reference Library, the 
31.20 	Office of Legislative Auditor, the Legislative Budget Office, and any other joint legislative 
31.21 	service office.

31.22 	Sec. 3. Minnesota Statutes 2016, section 3.855, subdivision 2, is amended to read:
31.23 		Subd. 2.State employee negotiations. (a) The commissioner of management and budget 
31.24 	shall regularly advise the commission on the progress of collective bargaining activities 
31.25 	with state employees under the state Public Employment Labor Relations Act. During 
31.26 	negotiations, the commission may make recommendations to the commissioner as it deems 
31.27 	appropriate but no recommendation shall impose any obligation or grant any right or privilege 
31.28 	to the parties.
31.29 	(b) The commissioner shall submit to the chair of the commission any negotiated 
31.30 	collective bargaining agreements, arbitration awards, compensation plans, or salaries for 
31.31 	legislative approval or disapproval. Negotiated agreements shall be submitted within five 
31.32 	days of the date of approval by the commissioner or the date of approval by the affected 
32.1 	state employees, whichever occurs later. Arbitration awards shall be submitted within five 
32.2 	days of their receipt by the commissioner. If the commission disapproves a collective 
32.3 	bargaining agreement, award, compensation plan, or salary, the commission shall specify 
32.4 	in writing to the parties those portions with which it disagrees and its reasons. If the 
32.5 	commission approves a collective bargaining agreement, award, compensation plan, or 
32.6 	salary, it shall submit the matter to the legislature to be accepted or rejected under this 
32.7 	section.
32.8 	(c) When the legislature is not in session, the commission may give interim approval to 
32.9 	a negotiated collective bargaining agreement, salary, compensation plan, or arbitration 
32.10 	award. When the legislature is not in session, failure of the commission to disapprove a 
32.11 	collective bargaining agreement or arbitration award within 30 days constitutes approval.
32.12 	The commission shall submit the negotiated collective bargaining agreements, salaries, 
32.13 	compensation plans, or arbitration awards for which it has provided approval to the entire 
32.14 	legislature for ratification at a special legislative session called to consider them or at its 
32.15 	next regular legislative session as provided in this section. Approval or disapproval by the 
32.16 	commission is not binding on the legislature.
32.17 	(d) When the legislature is not in session, the proposed collective bargaining agreement, 
32.18 	arbitration decision, salary, or compensation plan must be implemented upon its approval 
32.19 	by the commission, and state employees covered by the proposed agreement or arbitration 
32.20 	decision do not have the right to strike while the interim approval is in effect. Wages and 
32.21 	economic fringe benefit increases provided for in the agreement or arbitration decision paid 
32.22 	in accordance with the interim approval by the commission are not affected, but the wages 
32.23 	or benefit increases must cease to be paid or provided effective upon the rejection of the 
32.24 	agreement, arbitration decision, salary, or compensation plan, or upon adjournment of the 
32.25 	legislature without acting on it.

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

32.27 	Sec. 4. Minnesota Statutes 2016, section 3.8843, subdivision 7, is amended to read:
32.28 		Subd. 7.Expiration. This section expires June 30, 2017 2019.

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

32.30 	Sec. 5. [3.8853] LEGISLATIVE BUDGET OFFICE.
32.31 	The Legislative Budget Office is established under control of the Legislative Coordinating 
32.32 	Commission to provide the house of representatives and the senate with nonpartisan, accurate, 
33.1 	and timely information on the fiscal impact of proposed legislation, without regard to political 
33.2 	factors. The Legislative Coordinating Commission shall appoint a director who may hire 
33.3 	staff necessary to do the work of the office. The director serves a term of six years and may 
33.4 	not be removed during a term except for cause after a public hearing.

33.5 	Sec. 6. Minnesota Statutes 2016, section 3.971, subdivision 2, is amended to read:
33.6 		Subd. 2.Staff; compensation. (a) The legislative auditor shall establish a Financial 
33.7 	Audits Division and a Program Evaluation Division to fulfill the duties prescribed in this 
33.8 	section.
33.9 	(b) Each division may be supervised by a deputy auditor, appointed by the legislative 
33.10 	auditor, with the approval of the commission, for a term coterminous with the legislative 
33.11 	auditor's term. The deputy auditors may be removed before the expiration of their terms 
33.12 	only for cause. The legislative auditor and deputy auditors may each appoint a confidential 
33.13 	secretary to serve at pleasure. The salaries and benefits of the legislative auditor, deputy 
33.14 	auditors and confidential secretaries shall be determined by the compensation plan approved 
33.15 	by the Legislative Coordinating Commission. The deputy auditors may perform and exercise 
33.16 	the powers, duties and responsibilities imposed by law on the legislative auditor when 
33.17 	authorized by the legislative auditor.
33.18 	(c) The legislative auditor must appoint a fiscal oversight officer with duties that include 
33.19 	performing the review under section 3.972, subdivision 4.
33.20 	(d) The deputy auditors and the confidential secretaries serve in the unclassified civil 
33.21 	service, but the fiscal oversight officer and all other employees of the legislative auditor are 
33.22 	in the classified civil service. Compensation for employees of the legislative auditor in the 
33.23 	classified service shall be governed by a plan prepared by the legislative auditor and approved 
33.24 	by the Legislative Coordinating Commission and the legislature under section 3.855, 
33.25 	subdivision 3.
33.26 	(e) While in office, a person appointed deputy for the Financial Audit Division must 
33.27 	hold an active license as a certified public accountant.

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

33.29 	Sec. 7. Minnesota Statutes 2016, section 3.971, subdivision 6, is amended to read:
33.30 		Subd. 6.Financial audits. The legislative auditor shall audit the financial statements 
33.31 	of the state of Minnesota required by section 16A.50 and, as resources permit, Minnesota 
33.32 	State Colleges and Universities, the University of Minnesota, state agencies, departments, 
34.1 	boards, commissions, offices, courts, and other organizations subject to audit by the 
34.2 	legislative auditor, including, but not limited to, the State Agricultural Society, Agricultural 
34.3 	Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical Society, 
34.4 	ClearWay Minnesota, Minnesota Sports Facilities Authority, Metropolitan Council,
34.5 	Metropolitan Airports Commission, and Metropolitan Mosquito Control District. Financial 
34.6 	audits must be conducted according to generally accepted government auditing standards. 
34.7 	The legislative auditor shall see that all provisions of law respecting the appropriate and 
34.8 	economic use of public funds and other public resources are complied with and may, as 
34.9 	part of a financial audit or separately, investigate allegations of noncompliance.

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

34.11 	Sec. 8. Minnesota Statutes 2016, section 3.972, is amended by adding a subdivision to 
34.12 	read:
34.13 		Subd. 4.Certain transit financial activity reporting. (a) The legislative auditor must 
34.14 	perform a transit financial activity review of financial information for the Metropolitan 
34.15 	Council's Transportation Division and the joint powers board under section 297A.992. 
34.16 	Within 14 days of the end of each fiscal quarter, the legislative auditor must submit the 
34.17 	review to the Legislative Audit Commission and the chairs and ranking minority members 
34.18 	of the legislative committees with jurisdiction over transportation policy and finance, finance, 
34.19 	and ways and means.
34.20 	(b) At a minimum, each transit financial activity review must include:
34.21 	(1) a summary of monthly financial statements, including balance sheets and operating 
34.22 	statements, that shows income, expenditures, and fund balance;
34.23 	(2) a list of any obligations and agreements entered into related to transit purposes, 
34.24 	whether for capital or operating, including but not limited to bonds, notes, grants, and future 
34.25 	funding commitments;
34.26 	(3) the amount of funds in clause (2) that has been committed;
34.27 	(4) independent analysis by the fiscal oversight officer of the fiscal viability of revenues 
34.28 	and fund balance compared to expenditures, taking into account:
34.29 	(i) all expenditure commitments;
34.30 	(ii) cash flow;
34.31 	(iii) sufficiency of estimated funds; and
34.32 	(iv) financial solvency of anticipated transit projects; and
35.1 	(5) a notification concerning whether the requirements under paragraph (c) have been 
35.2 	met.
35.3 	(c) The Metropolitan Council and the joint powers board under section 297A.992 must 
35.4 	produce monthly financial statements as necessary for the review under paragraph (b), 
35.5 	clause (1), and provide timely information as requested by the legislative auditor.

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

35.7 	Sec. 9. Minnesota Statutes 2016, section 3.98, subdivision 1, is amended to read:
35.8 		Subdivision 1.Preparation. (a) The head or chief administrative officer of each 
35.9 	department or agency of the state government, including the Supreme Court, Legislative 
35.10 	Budget Office shall prepare a fiscal note at the request of the chair of the standing committee 
35.11 	to which a bill has been referred, or the chair of the house of representatives Ways and 
35.12 	Means Committee, or the chair of the senate Committee on Finance.
35.13 	(b) The head or chief administrative officer of each department or agency of state 
35.14 	government, including the Supreme Court, shall supply information for fiscal notes upon 
35.15 	request of the director of the Legislative Budget Office. The Legislative Budget Office may 
35.16 	adopt standards and guidelines governing timing of responses to requests for information 
35.17 	and governing access to data, consistent with laws governing access to data. Agencies must 
35.18 	comply with these standards and guidelines.
35.19 	(c) For purposes of this subdivision, "Supreme Court" includes all agencies, committees, 
35.20 	and commissions supervised or appointed by the state Supreme Court or the state court 
35.21 	administrator.

35.22 	Sec. 10. Minnesota Statutes 2016, section 3.98, subdivision 4, is amended to read:
35.23 		Subd. 4.Uniform procedure. The commissioner of management and budget Legislative 
35.24 	Budget Office shall prescribe a uniform procedure to govern the departments and agencies 
35.25 	of the state in complying with the requirements of this section.

35.26 	Sec. 11. Minnesota Statutes 2016, section 3.987, subdivision 1, is amended to read:
35.27 		Subdivision 1.Local impact notes. The commissioner of management and budget
35.28 	Legislative Budget Office shall coordinate the development of a local impact note for any 
35.29 	proposed legislation introduced after June 30, 1997, upon request of the chair or the ranking 
35.30 	minority member of either legislative Tax, Finance, or Ways and Means Committee. Upon 
35.31 	receipt of a request to prepare a local impact note, the commissioner office must notify the 
36.1 	authors of the proposed legislation that the request has been made. The local impact note 
36.2 	must be made available to the public upon request. If the action is among the exceptions 
36.3 	listed in section 3.988, a local impact note need not be requested nor prepared. The 
36.4 	commissioner office shall make a reasonable and timely estimate of the local fiscal impact 
36.5 	on each type of political subdivision that would result from the proposed legislation. The 
36.6 	commissioner of management and budget office may require any political subdivision or 
36.7 	the commissioner of an administrative agency of the state to supply in a timely manner any 
36.8 	information determined to be necessary to determine local fiscal impact. The political 
36.9 	subdivision, its representative association, or commissioner shall convey the requested 
36.10 	information to the commissioner of management and budget office with a signed statement 
36.11 	to the effect that the information is accurate and complete to the best of its ability. The 
36.12 	political subdivision, its representative association, or commissioner, when requested, shall 
36.13 	update its determination of local fiscal impact based on actual cost or revenue figures, 
36.14 	improved estimates, or both. Upon completion of the note, the commissioner office must 
36.15 	provide a copy to the authors of the proposed legislation and to the chair and ranking minority 
36.16 	member of each committee to which the proposed legislation is referred.

36.17 	Sec. 12. Minnesota Statutes 2016, section 6.481, subdivision 3, is amended to read:
36.18 		Subd. 3.CPA firm audit. A county audit performed by a CPA firm must meet the 
36.19 	standards and be in the a form required by the state auditor meeting recognized industry 
36.20 	auditing standards. The state auditor may require additional information from the CPA firm 
36.21 	if the state auditor determines that is in the public interest, but the state auditor must accept 
36.22 	the audit unless the state auditor determines it the audit or its form does not meet recognized 
36.23 	industry auditing standards or is not in the form required by the state auditor. The state 
36.24 	auditor may make additional examinations as the auditor determines to be in the public 
36.25 	interest.

36.26 	Sec. 13. Minnesota Statutes 2016, section 6.481, subdivision 6, is amended to read:
36.27 		Subd. 6.Payments to state auditor. A county audited by the state auditor must pay the 
36.28 	state auditor for the costs and expenses of the audit. If the state auditor makes additional 
36.29 	examinations of a county whose audit is performed by a CPA firm, the county must pay the 
36.30 	auditor for the cost of these examinations. Payments must be deposited in the state auditor 
36.31 	enterprisegeneral fund.

37.1 	Sec. 14. Minnesota Statutes 2016, section 6.56, subdivision 2, is amended to read:
37.2 		Subd. 2.Billings by state auditor. Upon the examination of the books, records, accounts, 
37.3 	and affairs of any political subdivision, as provided by law, such political subdivision shall 
37.4 	be liable to the state for the total cost and expenses of such examination, including the 
37.5 	salaries paid to the examiners while actually engaged in making such examination. The 
37.6 	state auditor may bill such political subdivision periodically for service rendered and the 
37.7 	officials responsible for approving and paying claims are authorized to pay said bill promptly. 
37.8 	Said payments shall be without prejudice to any defense against said claims that may exist 
37.9 	or be asserted. The state auditor enterprisegeneral fund shall be credited with all collections 
37.10 	made for any such examinations, including interest payments made pursuant to subdivision 
37.11 	3.

37.12 	Sec. 15. Minnesota Statutes 2016, section 6.581, subdivision 4, is amended to read:
37.13 		Subd. 4.Reports to legislature. At least 30 days before implementing increased charges 
37.14 	for examinations, the state auditor must report the proposed increases to the chairs and 
37.15 	ranking minority members of the committees in the house of representatives and the senate 
37.16 	with jurisdiction over the budget of the state auditor. By January 15 of each odd-numbered 
37.17 	year, the state auditor must report to the chairs and ranking minority members of the 
37.18 	legislative committees and divisions with primary jurisdiction over the budget of the state 
37.19 	auditor a summary of the state auditor enterprise fund anticipated revenues, and expenditures 
37.20 	related to examinations for the biennium ending June 30 of that year. The report must also 
37.21 	include for the biennium the number of full-time equivalents paid by the fund, by division, 
37.22 	employed by the Office of the State Auditor, any audit rate changes stated as a percentage, 
37.23 	the number of audit reports issued, and the number of counties audited.

37.24 	Sec. 16. [6.92] LITIGATION EXPENSES.
37.25 	(a) Unless funds are otherwise expressly provided by law for this purpose, all costs 
37.26 	incurred by the state auditor in preparing and asserting a civil claim or appeal, or in defending 
37.27 	against a civil claim or appeal, related to the proper exercise of the auditor's constitutionally 
37.28 	authorized core functions must be paid by the auditor's constitutional office division. Only 
37.29 	allocations made to the constitutional office division may be used to pay these costs. The 
37.30 	state auditor must report to the chairs and ranking minority members of the committees in 
37.31 	the house of representatives and the senate with jurisdiction over the Office of the State 
37.32 	Auditor by May 1, 2017, and January 1, 2018, and each January 1 thereafter, on the state 
37.33 	auditor's litigation expenses.  The report must list each lawsuit the state auditor has brought 
38.1 	or is defending, the grounds for each suit, the litigation expenses incurred since the previous 
38.2 	report under this section, and the projected expenses to complete the suit.
38.3 	(b) In complying with paragraph (a), the state auditor may not, directly or indirectly, 
38.4 	decrease allocations previously made to, transfer funds from, or otherwise reduce services 
38.5 	provided by any other division of the office.

38.6 	Sec. 17. [15.0395] INTERAGENCY AGREEMENTS AND INTRA-AGENCY 
38.7 	TRANSFERS.
38.8 	(a) The head of each agency must provide quarterly reports to the chairs and ranking 
38.9 	minority members of the legislative committees with jurisdiction over the department or 
38.10 	agency's budget on:
38.11 	(1) interagency agreements or service-level agreements and any renewals or extensions 
38.12 	of existing interagency or service-level agreements with another agency if the cumulative 
38.13 	value of those agreements is more than $50,000 in a single fiscal year; and
38.14 	(2) transfers of appropriations between accounts within or between agencies, if the 
38.15 	cumulative value of the transfers is more than $50,000 in a single fiscal year.
38.16 	The report must include the statutory citation authorizing the agreement, transfer or dollar 
38.17 	amount, purpose, and effective date of the agreement, the duration of the agreement, and a 
38.18 	copy of the agreement.
38.19 	(b) As used in this section, "agency" includes the departments of the state listed in section 
38.20 	15.01, a multimember state agency in the executive branch described in section 15.012, 
38.21 	paragraph (a), the Office of MN.IT Services, and the Office of Higher Education.

38.22 	Sec. 18. [16A.1282] TRANSFERS TO THE GOVERNOR.
38.23 	An agency shall not transfer money to the governor for services provided by the governor 
38.24 	or to reimburse expenses incurred by the governor.

38.25 	Sec. 19. Minnesota Statutes 2016, section 16A.90, is amended to read:
38.26 	16A.90 EMPLOYEE GAINSHARING SYSTEM.
38.27 		Subdivision 1.Commissioner must establish program. (a) The commissioner shall 
38.28 	establish a program to provide onetime bonus compensation to state employees for efforts 
38.29 	made to reduce the costs of operating state government or for ways of providing better or 
38.30 	more efficient state services. The commissioner may authorize an executive branch appointing 
38.31 	authority to make a onetime award to an employee or group of employees whose suggestion 
39.1 	or involvement in a project is determined by the commissioner to have resulted in documented 
39.2 	cost-savings to the state. Before authorizing awards under this section, the commissioner 
39.3 	shall establish guidelines for the program including but not limited to:
39.4 	(1) the maximum award is ten percent of the documented savings in the first fiscal year 
39.5 	in which the savings are realized up to $50,000;
39.6 	(2) the award must be paid from the appropriation to which the savings accrued; and
39.7 	(3) employees whose primary job responsibility is to identify cost savings or ways of 
39.8 	providing better or more efficient state services are generally not eligible for bonus 
39.9 	compensation under this section except in extraordinary circumstances as defined by the 
39.10 	commissioner.
39.11 	(b) The program required by this section must be in addition to any existing monetary 
39.12 	or nonmonetary performance-based recognition programs for state employees, including 
39.13 	achievement awards, continuous improvement awards, and general employee recognitions.
39.14 		Subd. 2.Biannual legislative report. No later than August 1, 2017, and biannually 
39.15 	thereafter, the commissioner must report to the chairs and ranking minority members of the 
39.16 	house of representatives and senate committees with jurisdiction over Minnesota Management 
39.17 	and Budget on the status of the program required by this section. The report must detail:
39.18 	(1) the specific program guidelines established by the commissioner as required by 
39.19 	subdivision 1, if the guidelines have not been described in a previous report;
39.20 	(2) any proposed modifications to the established guidelines under consideration by the 
39.21 	commissioner, including the reason for the proposed modifications;
39.22 	(3) the methods used by the commissioner to promote the program to state employees, 
39.23 	if the methods have not been described in a previous report;
39.24 	(4) a summary of the results of the program that includes the following, categorized by 
39.25 	agency:
39.26 	(i) the number of state employees whose suggestions or involvement in a project were 
39.27 	considered for possible bonus compensation, and a description of each suggestion or project 
39.28 	that was considered;
39.29 	(ii) the total amount of bonus compensation actually awarded, itemized by each suggestion 
39.30 	or project that resulted in an award and the amount awarded for that suggestion or project; 
39.31 	and
40.1 	(iii) the total amount of documented cost-savings that accrued to the agency as a result 
40.2 	of each suggestion or project for which bonus compensation was granted; and
40.3 	(5) any recommendations for legislation that, in the judgment of the commissioner, 
40.4 	would improve the effectiveness of the bonus compensation program established by this 
40.5 	section or which would otherwise increase opportunities for state employees to actively 
40.6 	participate in the development and implementation of strategies for reducing the costs of 
40.7 	operating state government or for providing better or more efficient state services.

40.8 	Sec. 20. Minnesota Statutes 2016, section 16B.04, subdivision 2, is amended to read:
40.9 		Subd. 2.Powers and duties, generally. Subject to other provisions of this chapter, the 
40.10 	commissioner is authorized to:
40.11 	(1) supervise, control, review, and approve all state contracts and purchasing, provided 
40.12 	that the commissioner may not approve a state contract with, or the purchase of goods from, 
40.13 	a vendor who intentionally refuses to do business, or who intentionally discriminates in the 
40.14 	basic terms, conditions, or performance of a contract or sale, on the basis of a person's 
40.15 	national origin;
40.16 	(2) provide agencies with supplies and equipment;
40.17 	(3) investigate and study the management and organization of agencies, and reorganize 
40.18 	them when necessary to ensure their effective and efficient operation;
40.19 	(4) manage and control state property, real and personal;
40.20 	(5) maintain and operate all state buildings, as described in section 16B.24, subdivision 
40.21 	1;
40.22 	(6) supervise, control, review, and approve all capital improvements to state buildings 
40.23 	and the capitol building and grounds;
40.24 	(7) provide central mail facilities;
40.25 	(8) oversee publication of official documents and provide for their sale;
40.26 	(9) manage and operate parking facilities for state employees and a central motor pool 
40.27 	for travel on state business;
40.28 	(10) provide rental space within the capitol complex for a private day care center for 
40.29 	children of state employees. The commissioner shall contract for services as provided in 
40.30 	this chapter;
40.31 	(11) settle state employee workers' compensation claims;
41.1 	(12) purchase, accept, transfer, warehouse, sell, distribute, or dispose of surplus property 
41.2 	in accordance with state and federal rules and regulations. The commissioner may charge 
41.3 	a fee to cover any expenses incurred in connection with any of these acts; and
41.4 	(13) provide and manage a central distribution center for federal and state surplus personal 
41.5 	property, as defined in section 16B.2975, and may provide and manage a warehouse facility.

41.6 	Sec. 21. Minnesota Statutes 2016, section 16B.055, subdivision 1, is amended to read:
41.7 		Subdivision 1.Federal Assistive Technology Act. (a) The Department of Administration 
41.8 	is designated as the lead agency to carry out all the responsibilities under the Assistive 
41.9 	Technology Act of 1998, as provided by Public Law 108-364, as amended. The Minnesota 
41.10 	Assistive Technology Advisory Council is established to fulfill the responsibilities required 
41.11 	by the Assistive Technology Act, as provided by Public Law 108-364, as amended. Because 
41.12 	the existence of this council is required by federal law, this council does not expire.
41.13 	(b) Except as provided in paragraph (c), the governor shall appoint the membership of 
41.14 	the council as required by the Assistive Technology Act of 1998, as provided by Public 
41.15 	Law 108-364, as amended. After the governor has completed the appointments required by 
41.16 	this subdivision, the commissioner of administration, or the commissioner's designee, shall 
41.17 	convene the first meeting of the council following the appointments. Members shall serve 
41.18 	two-year terms commencing July 1 of each odd-numbered year, and receive the compensation 
41.19 	specified by the Assistive Technology Act of 1998, as provided by Public Law 108-364, as 
41.20 	amended. The members of the council shall select their chair at the first meeting following 
41.21 	their appointment.
41.22 	(c) After consulting with the appropriate commissioner, the commissioner of 
41.23 	administration shall appoint a representative from:
41.24 	(1) State Services for the Blind who has assistive technology expertise;
41.25 	(2) vocational rehabilitation services who has assistive technology expertise;
41.26 	(3) the Workforce Development Council; and
41.27 	(4) the Department of Education who has assistive technology expertise.

41.28 	Sec. 22. Minnesota Statutes 2016, section 16B.335, subdivision 1, is amended to read:
41.29 		Subdivision 1.Construction and major remodeling. (a) The commissioner, or any 
41.30 	other recipient to whom an appropriation is made to acquire or better public lands or buildings 
41.31 	or other public improvements of a capital nature, must not prepare final plans and 
42.1 	specifications for any construction, major remodeling, or land acquisition in anticipation 
42.2 	of which the appropriation was made until the agency that will use the project has presented 
42.3 	the program plan and cost estimates for all elements necessary to complete the project to 
42.4 	the chair of the senate Finance Committee and the chair of the house of representatives 
42.5 	Ways and Means Committee and the chairs have made their recommendations, and the 
42.6 	chair and ranking minority member of the senate Capital Investment Committee and the 
42.7 	chair and ranking minority member of the house of representatives Capital Investment 
42.8 	Committee are notified. "Construction or major remodeling" means construction of a new 
42.9 	building, a substantial addition to an existing building, or a substantial change to the interior 
42.10 	configuration of an existing building. The presentation must note any significant changes 
42.11 	in the work that will be done, or in its cost, since the appropriation for the project was 
42.12 	enacted or from the predesign submittal. The program plans and estimates must be presented 
42.13 	for review at least two weeks before a recommendation is needed. The recommendations 
42.14 	are advisory only. Failure or refusal to make a recommendation is considered a negative 
42.15 	recommendation.
42.16 	(b) The chairs and ranking minority members of the senate Finance and Capital 
42.17 	Investment Committees and, the house of representatives Capital Investment and Ways and 
42.18 	Means Committees, and the house of representatives and senate budget committees or 
42.19 	divisions with jurisdiction over the agency that will use the project must also be notified 
42.20 	whenever there is a substantial change in a construction or major remodeling project, or in 
42.21 	its cost. This notice must include the nature and reason for the change and the anticipated 
42.22 	cost of the change. The notice must be given no later than ten days after signing a change 
42.23 	order or other document authorizing a change in the project, or if there is not a change order 
42.24 	or other document, no later than ten days after the project owner becomes aware of a 
42.25 	substantial change in the project or its cost.
42.26 	(b) (c) Capital projects exempt from the requirements of this subdivision in paragraph 
42.27 	(a) to seek recommendations before preparing final plans and specifications include 
42.28 	demolition or decommissioning of state assets, hazardous material projects, utility 
42.29 	infrastructure projects, environmental testing, parking lots, parking structures, park and ride 
42.30 	facilities, bus rapid transit stations, light rail lines, passenger rail projects, exterior lighting, 
42.31 	fencing, highway rest areas, truck stations, storage facilities not consisting primarily of 
42.32 	offices or heated work areas, roads, bridges, trails, pathways, campgrounds, athletic fields, 
42.33 	dams, floodwater retention systems, water access sites, harbors, sewer separation projects, 
42.34 	water and wastewater facilities, port development projects for which the commissioner of 
42.35 	transportation has entered into an assistance agreement under section 457A.04, ice centers, 
43.1 	a local government project with a construction cost of less than $1,500,000, or any other 
43.2 	capital project with a construction cost of less than $750,000. The requirements in paragraph 
43.3 	(b) to give notice of changes applies to these projects.

43.4 	Sec. 23. Minnesota Statutes 2016, section 16B.371, is amended to read:
43.5 	16B.371 ASSISTANCE TO SMALL AGENCIES.
43.6 	(a) The commissioner may provide administrative support services to small agencies. 
43.7 	To promote efficiency and cost-effective use of state resources, and to improve financial 
43.8 	controls, the commissioner may require a small agency to receive administrative support 
43.9 	services through the Department of Administration or through another agency designated 
43.10 	by the commissioner. Services subject to this section include finance, accounting, payroll, 
43.11 	purchasing, human resources, and other services designated by the commissioner. The 
43.12 	commissioner may determine what constitutes a small agency for purposes of this section. 
43.13 	The commissioner, in consultation with the commissioner of management and budget and 
43.14 	small agencies, shall evaluate small agencies' needs for administrative support services. If 
43.15 	the commissioner provides administrative support services to a small agency, the 
43.16 	commissioner must enter into a service level agreement with the agency, specifying the 
43.17 	services to be provided and the costs and anticipated outcomes of the services.
43.18 	(b) The Minnesota Council on Latino Affairs, the Council for Minnesotans of African 
43.19 	Heritage, the Council on Asian-Pacific Minnesotans, the Indian Affairs Council, and the 
43.20 	Minnesota State Council on Disability mustmay use the services specified in paragraph 
43.21 	(a).
43.22 	(c) The commissioner of administration may must  assess agencies for services it provides 
43.23 	under this section. The amounts assessed are appropriated to the commissioner.
43.24 	(d) For agencies covered in this section, the commissioner has the authority to require 
43.25 	the agency to comply with applicable state finance, accounting, payroll, purchasing, and 
43.26 	human resources policies. The agencies served retain the ownership and responsibility for 
43.27 	spending decisions and for ongoing implementation of appropriate business operations.

43.28 	Sec. 24. Minnesota Statutes 2016, section 16B.4805, subdivision 2, is amended to read:
43.29 		Subd. 2.Reimbursement for making reasonable accommodation. The commissioner 
43.30 	of administration shall reimburse state agencies for up to 50 percent of the cost of expenses 
43.31 	incurred in making reasonable accommodations eligible for reimbursement for agency 
44.1 	employees and applicants for employment to the extent that funds are available in the 
44.2 	accommodation account established under subdivision 3 for this purpose.

44.3 	Sec. 25. Minnesota Statutes 2016, section 16B.4805, subdivision 4, is amended to read:
44.4 		Subd. 4.Administration costs. The commissioner may use up to 15 percent$5,000 of 
44.5 	the biennial appropriation for administration of this section.

44.6 	Sec. 26. Minnesota Statutes 2016, section 16B.97, is amended by adding a subdivision to 
44.7 	read:
44.8 		Subd. 6.Commerce grants. The office must monitor grants made by the Department 
44.9 	of Commerce.

44.10 	Sec. 27. [16B.991] TERMINATION OF GRANT.
44.11 	Each grant agreement subject to sections 16B.97 and 16B.98 must provide that the 
44.12 	agreement will immediately be terminated if:
44.13 	(1) the recipient is convicted of a criminal offense relating to a state grant agreement; 
44.14 	or
44.15 	(2) the agency entering into the grant agreement or the commissioner of administration 
44.16 	determines that the grant recipient is under investigation by a federal agency, a state agency, 
44.17 	or a local law enforcement agency for matters relating to administration of a state grant.

44.18 	Sec. 28. Minnesota Statutes 2016, section 16E.016, is amended to read:
44.19 	16E.016 RESPONSIBILITY FOR INFORMATION TECHNOLOGY SERVICES 
44.20 	AND EQUIPMENT.
44.21 	(a) The chief information officer is responsible for providing or entering into managed 
44.22 	services contracts for the provision, improvement, and development of the following 
44.23 	information technology systems and services to state agencies:
44.24 	(1) state data centers;
44.25 	(2) mainframes including system software;
44.26 	(3) servers including system software;
44.27 	(4) desktops including system software;
44.28 	(5) laptop computers including system software;
45.1 	(6) a data network including system software;
45.2 	(7) database, electronic mail, office systems, reporting, and other standard software 
45.3 	tools;
45.4 	(8) business application software and related technical support services;
45.5 	(9) help desk for the components listed in clauses (1) to (8);
45.6 	(10) maintenance, problem resolution, and break-fix for the components listed in clauses 
45.7 	(1) to (8);
45.8 	(11) regular upgrades and replacement for the components listed in clauses (1) to (8); 
45.9 	and
45.10 	(12) network-connected output devices.
45.11 	(b) All state agency employees whose work primarily involves functions specified in 
45.12 	paragraph (a) are employees of the Office of MN.IT Services. This includes employees who 
45.13 	directly perform the functions in paragraph (a), as well as employees whose work primarily 
45.14 	involves managing, supervising, or providing administrative services or support services 
45.15 	to employees who directly perform these functions. The chief information officer may assign 
45.16 	employees of the office to perform work exclusively for another state agency.
45.17 	(c) Subject to sections 16C.08 and 16C.09, the chief information officer may allow a 
45.18 	state agency to obtain services specified in paragraph (a) through a contract with an outside 
45.19 	vendor when the chief information officer and the agency head agree that a contract would 
45.20 	provide best value, as defined in section 16C.02, under the service-level agreement. The 
45.21 	chief information officer must require that agency contracts with outside vendors ensure 
45.22 	that systems and services are compatible with standards established by the Office of MN.IT 
45.23 	Services.
45.24 	(d) The Minnesota State Retirement System, the Public Employees Retirement 
45.25 	Association, the Teachers Retirement Association, and the State Board of Investment, the 
45.26 	Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide Radio 
45.27 	Board are not state agencies for purposes of this section.
45.28 	(e) Effective upon certification by the chief information officer that the information 
45.29 	technology systems and services provided under this section meet all professional and 
45.30 	technical standards necessary for the entity to perform its functions, the following are state 
45.31 	agencies for purposes of this section: the Campaign Finance and Public Disclosure Board, 
45.32 	the State Lottery, and the Statewide Radio Board.

46.1 	Sec. 29. Minnesota Statutes 2016, section 16E.0466, is amended to read:
46.2 	16E.0466 STATE AGENCY TECHNOLOGY PROJECTS.
46.3 		Subdivision 1.Consultation required. (a) Every state agency with an information or 
46.4 	telecommunications project must consult with the Office of MN.IT Services to determine 
46.5 	the information technology cost of the project. Upon agreement between the commissioner 
46.6 	of a particular agency and the chief information officer, the agency must transfer the 
46.7 	information technology cost portion of the project to the Office of MN.IT Services. Service 
46.8 	level agreements must document all project-related transfers under this section. Those 
46.9 	agencies specified in section 16E.016, paragraph (d), are exempt from the requirements of 
46.10 	this section.
46.11 	(b) Notwithstanding section 16A.28, subdivision 3, any unexpended operating balance 
46.12 	appropriated to a state agency may be transferred to the information and telecommunications 
46.13 	technology systems and services account for the information technology cost of a specific 
46.14 	project, subject to the review of the Legislative Advisory Commission, under section 16E.21, 
46.15 	subdivision 3.
46.16 		Subd. 2.Legislative report. No later than October 1, 2017, and quarterly thereafter, the 
46.17 	state chief information officer must submit a comprehensive project portfolio report to the 
46.18 	chairs and ranking minority members of the house of representatives and senate committees 
46.19 	with jurisdiction over state government finance on projects requiring consultation under 
46.20 	subdivision 1. The report must itemize:
46.21 	(1) each project presented to the office for consultation in the time since the last report;
46.22 	(2) the information technology cost associated with the project, including the information 
46.23 	technology cost as a percentage of the project's complete budget;
46.24 	(3) the status of the information technology components of the project's development;
46.25 	(4) the date the information technology components of the project are expected to be 
46.26 	completed; and
46.27 	(5) the projected costs for ongoing support and maintenance of the information technology 
46.28 	components after the project is complete.

46.29 	Sec. 30. [43A.035] LIMIT ON NUMBER OF FULL-TIME EQUIVALENT 
46.30 	EMPLOYEES; USE OF AGENCY SAVINGS.
46.31 		Subdivision 1.Number of full-time equivalent employees limited. The total number 
46.32 	of full-time equivalent employees employed in all executive branch agencies may not exceed 
47.1 	31,691. The commissioner of management and budget may forbid an executive agency from 
47.2 	hiring a new employee or from filling a vacancy as the commissioner determines necessary 
47.3 	to ensure compliance with this section. Any reductions in staff should prioritize protecting 
47.4 	client-facing health care workers, corrections officers, public safety workers, and mental 
47.5 	health workers. As a means of achieving compliance with this subdivision, the commissioner 
47.6 	may authorize an agency to provide an early retirement incentive to an executive branch 
47.7 	employee, under which the state will continue to make the employer contribution for health 
47.8 	insurance after the employee has terminated state service. The commissioner must prescribe 
47.9 	eligibility requirements and the maximum duration of the payments.
47.10 		Subd. 2.Use of savings resulting from vacant positions. To the extent that an executive 
47.11 	branch agency accrues savings in personnel costs resulting from the departure of an agency 
47.12 	employee or the maintenance of a vacant position, those savings may only be used to support 
47.13 	a new employee in that position at an equal or lesser rate of compensation, and for an equal 
47.14 	or lesser full-time equivalent work status. Savings accrued from departed personnel or 
47.15 	maintenance of a vacant position may not be transferred or reallocated to another program 
47.16 	or activity within the executive branch agency, or used to increase the number of full-time 
47.17 	equivalent employees at the agency, unless expressly authorized by law.
47.18 		Subd. 3.Definition.  For purposes of this section, an "executive branch agency" does 
47.19 	not include the Minnesota State Colleges and Universities or statewide pension plans.

47.20 	Sec. 31. Minnesota Statutes 2016, section 43A.17, subdivision 11, is amended to read:
47.21 		Subd. 11.Severance pay for certain employees. (a) For purposes of this subdivision, 
47.22 	"highly compensated employee" means an employee of the state whose estimated annual 
47.23 	compensation is greater than 60 percent of the governor's annual salary, and who is not 
47.24 	covered by a collective bargaining agreement negotiated under chapter 179A or a 
47.25 	compensation plan authorized under section 43A.18, subdivision 3a.
47.26 	(b) Severance pay for a highly compensated employee includes benefits or compensation 
47.27 	with a quantifiable monetary value, that are provided for an employee upon termination of 
47.28 	employment and are not part of the employee's annual wages and benefits and are not 
47.29 	specifically excluded by this subdivision. Severance pay does not include payments for 
47.30 	accumulated vacation, accumulated sick leave, and accumulated sick leave liquidated to 
47.31 	cover the cost of group term insurance. Severance pay for a highly compensated employee 
47.32 	does not include payments of periodic contributions by an employer toward premiums for 
47.33 	group insurance policies. The severance pay for a highly compensated employee must be 
47.34 	excluded from retirement deductions and from any calculations of retirement benefits. 
48.1 	Severance pay for a highly compensated employee must be paid in a manner mutually 
48.2 	agreeable to the employee and the employee's appointing authority over a period not to 
48.3 	exceed five years from retirement or termination of employment. If a retired or terminated 
48.4 	employee dies before all or a portion of the severance pay has been disbursed, the balance 
48.5 	due must be paid to a named beneficiary or, lacking one, to the deceased's estate. Except 
48.6 	as provided in paragraph (c), severance pay provided for a highly compensated employee 
48.7 	leaving employment may not exceed an amount equivalent to six months of pay the lesser 
48.8 	of:
48.9 	(1) six months pay; or
48.10 	(2) the highly compensated employee's regular rate of pay multiplied by 35 percent of 
48.11 	the highly compensated employee's accumulated but unused sick leave hours.
48.12 	(c) Severance pay for a highly compensated employee may exceed an amount equivalent 
48.13 	to six months of pay the limit prescribed in paragraph (b) if the severance pay is part of an 
48.14 	early retirement incentive offer approved by the state and the same early retirement incentive 
48.15 	offer is also made available to all other employees of the appointing authority who meet 
48.16 	generally defined criteria relative to age or length of service.
48.17 	(d) An appointing authority may make severance payments to a highly compensated 
48.18 	employee, up to the limits prescribed in this subdivision, only if doing so is authorized by 
48.19 	a compensation plan under section 43A.18 that governs the employee, provided that the 
48.20 	following highly compensated employees are not eligible for severance pay:
48.21 	(1) a commissioner, deputy commissioner, or assistant commissioner of any state 
48.22 	department or agency as listed in section 15.01 or 15.06, including the state chief information 
48.23 	officer; and
48.24 	(2) any unclassified employee who is also a public official, as defined in section 10A.01, 
48.25 	subdivision 35.
48.26 	(e) Severance pay shall not be paid to a highly compensated employee who has been 
48.27 	employed by the appointing authority for less than six months or who voluntarily terminates 
48.28 	employment.

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

49.1 	Sec. 32. Minnesota Statutes 2016, section 43A.24, is amended by adding a subdivision to 
49.2 	read:
49.3 		Subd. 1a.Opt out. (a) An individual eligible for state-paid hospital, medical, and dental 
49.4 	benefits under this section has the right to decline those benefits, provided the individual 
49.5 	declining the benefits can prove health insurance coverage from another source. Any 
49.6 	individual declining benefits must do so in writing, signed and dated, on a form provided 
49.7 	by the commissioner.
49.8 	(b) The commissioner must create, and make available in hard copy and online a form 
49.9 	for individuals to use in declining state-paid hospital, medical, and dental benefits. The form 
49.10 	must, at a minimum, include notice to the declining individual of the next available 
49.11 	opportunity and procedure to re-enroll in the benefits.
49.12 	(c) No later than January 15 of each year, the commissioner of management and budget 
49.13 	must provide a report to the chairs and ranking minority members of the legislative 
49.14 	committees with jurisdiction over state government finance on the number of employees 
49.15 	choosing to opt-out of state employee group insurance coverage under this section. The 
49.16 	report must provide itemized statistics, by agency, and include the total amount of savings 
49.17 	accrued to each agency resulting from the opt-outs.

49.18 	Sec. 33. [118A.09] ADDITIONAL LONG-TERM EQUITY INVESTMENT 
49.19 	AUTHORITY.
49.20 		Subdivision 1.Definition; qualifying government. "Qualifying government" means:
49.21 	(1) a county or statutory or home rule charter city with a population of more than 100,000;
49.22 	(2) a county or statutory or home rule charter city which had its most recently issued 
49.23 	general obligation bonds rated in the highest category by a national bond rating agency; or
49.24 	(3) a self-insurance pool listed in section 471.982, subdivision 3.
49.25 	A county or statutory or home rule charter city with a population of 100,000 or less that is 
49.26 	a qualifying government, but is subsequently rated less than the highest category by a 
49.27 	national bond rating agency on a general obligation bond issue, may not invest additional 
49.28 	funds under this section but may continue to manage funds previously invested under 
49.29 	subdivision 2.
49.30 		Subd. 2.Additional investment authority. Qualifying governments may invest the 
49.31 	amount described in subdivision 3:
50.1 	(1) in index mutual funds based in the United States and indexed to a broad market 
50.2 	United States equity index; or
50.3 	(2) with the Minnesota State Board of Investment subject to such terms and minimum 
50.4 	amounts as may be adopted by the board. Index mutual fund investments must be made 
50.5 	directly with the main sales office of the fund.
50.6 		Subd. 3.Funds. (a) Qualifying governments may only invest under subdivision 2 
50.7 	according to the limitations in this subdivision. A qualifying government under subdivision 
50.8 	1, clause (1) or (2), may only invest its funds that are held for long-term capital plans 
50.9 	authorized by the city council or county board, or long-term obligations of the qualifying 
50.10 	government. Long-term obligations of the qualifying government include long-term capital 
50.11 	plan reserves, funds held to offset long-term environmental exposure, other postemployment 
50.12 	benefit liabilities, compensated absences, and other long-term obligations established by 
50.13 	applicable accounting standards.
50.14 	(b) Qualifying governments under subdivision 1, clause (1) or (2), may invest up to 15 
50.15 	percent of the sum of:
50.16 	(1) unassigned cash;
50.17 	(2) cash equivalents;
50.18 	(3) deposits; and
50.19 	(4) investments.
50.20 	This calculation must be based on the qualifying government's most recent audited statement 
50.21 	of net position, which must be compliant and audited pursuant to governmental accounting 
50.22 	and auditing standards. Once the amount invested reaches 15 percent of the sum of 
50.23 	unassigned cash, cash equivalents, deposits, and investments, no further funds may be 
50.24 	invested under this section; however, a qualifying government may continue to manage the 
50.25 	funds previously invested under this section even if the total amount subsequently exceeds 
50.26 	15 percent of the sum of unassigned cash, cash equivalents, deposits, and investments.
50.27 	(c) A qualified government under subdivision 1, clause (3), may invest up to the lesser 
50.28 	of:
50.29 	(1) 15 percent of the sum of its cash, cash equivalents, deposits, and investments; or
50.30 	(2) 25 percent of its net assets as reported on the pool's most recent audited statement 
50.31 	of net position, which must be compliant and audited pursuant to governmental accounting 
50.32 	and auditing standards.
51.1 		Subd. 4.Approval. Before investing pursuant to this section, the governing body of the 
51.2 	qualifying government must adopt a resolution that includes the following statements:
51.3 	(1) the governing body understands that investments under subdivision 2 have a risk of 
51.4 	loss;
51.5 	(2) the governing body understands the type of funds that are being invested and the 
51.6 	specific investment itself; and
51.7 	(3) the governing body certifies that all funds designated for investment through the 
51.8 	State Board of Investment meet the requirements of this section and the policies and 
51.9 	procedures established by the State Board of Investment.
51.10 		Subd. 5.Public Employees Retirement Association to act as account administrator.
 51.11 	A qualifying government exercising authority under this section to invest amounts with the 
51.12 	State Board of Investment shall establish an account with the Public Employees Retirement 
51.13 	Association (PERA), which shall act as the account administrator.
51.14 		Subd. 6.Purpose of account. The account established under subdivision 5 may only 
51.15 	be used for the purposes provided under subdivision 3. PERA may rely on representations 
51.16 	made by the qualifying government in exercising its duties as account administrator and 
51.17 	has no duty to further verify qualifications, use, or intended use of the funds that are invested 
51.18 	or withdrawn.
51.19 		Subd. 7.Account maintenance. (a) A qualifying government may establish an account 
51.20 	to be held under the supervision of PERA for the purposes of investing funds with the State 
51.21 	Board of Investment under subdivision 2. PERA shall establish a separate account for each 
51.22 	qualifying government. PERA may charge participating qualifying governments a fee for 
51.23 	reasonable administrative costs. The amount of any fee charged by PERA is annually 
51.24 	appropriated to the association from the account. PERA may establish other reasonable 
51.25 	terms and conditions for creation and maintenance of these accounts.
51.26 	(b) PERA must report to the qualifying government on the investment returns of invested 
51.27 	funds and on all investment fees or costs incurred by the account.
51.28 		Subd. 8.Investment. (a) The assets of an account shall be invested and held as required 
51.29 	by this subdivision.
51.30 	(b) PERA must certify all money in the accounts for which it is account administrator 
51.31 	to the State Board of Investment for investment under section 11A.14, subject to the policies 
51.32 	and procedures established by the State Board of Investment. Investment earnings must be 
51.33 	credited to the account of the individual qualifying government.
52.1 	(c) For accounts invested by the State Board of Investment, the investment restrictions 
52.2 	shall be the same as those generally applicable to the State Board of Investment.
52.3 	(d) A qualifying government may provide investment direction to PERA, subject to the 
52.4 	policies and procedures established by the State Board of Investment.
52.5 		Subd. 9.Withdrawal of funds and termination of account. (a) A government may 
52.6 	withdraw some or all of its money or terminate the account.
52.7 	(b) A government requesting withdrawal of money from an account created under this 
52.8 	section must do so at a time and in the manner required by the executive director of PERA, 
52.9 	subject to the policies and procedures established by the State Board of Investment.

52.10 	Sec. 34. Minnesota Statutes 2016, section 138.69, is amended to read:
52.11 	138.69 PUBLIC AREAS OF THE CAPITOL.
52.12 	The Minnesota State Historical Society is designated the research agency and is 
52.13 	responsible for the interpretation of the public areas for visitors to the Capitol. This involves 
52.14 	conducting or approving public programs and tours in the Capitol and State Office Building, 
52.15 	including exhibits held in the Capitol, providing informational services, acting as advisor 
52.16 	on preservation, recommending appropriate custodial policies, and maintaining and repairing 
52.17 	all works of art. Notwithstanding section 138.668, the society may not charge a fee for 
52.18 	general tours at the Capitol but may charge fees for special programs other than general 
52.19 	tours.

52.20 	Sec. 35. Minnesota Statutes 2016, section 155A.30, subdivision 5, is amended to read:
52.21 		Subd. 5.Conditions precedent to issuance. A license must not be issued unless the 
52.22 	board first determines that the applicant has met the requirements in clauses (1) to (8) (9):
52.23 	(1) the applicant must have a sound financial condition with sufficient resources available 
52.24 	to meet the school's financial obligations; to refund all tuition and other charges, within a 
52.25 	reasonable period of time, in the event of dissolution of the school or in the event of any 
52.26 	justifiable claims for refund against the school; to provide adequate service to its students 
52.27 	and prospective students; and to maintain proper use and support of the school;
52.28 	(2) the applicant must have satisfactory training facilities with sufficient tools and 
52.29 	equipment and the necessary number of work stations to adequately train the students 
52.30 	currently enrolled, and those proposed to be enrolled;
53.1 	(3) the applicant must employ a sufficient number of qualified instructors trained by 
53.2 	experience and education to give the training contemplated;
53.3 	(4) the premises and conditions under which the students work and study must be sanitary, 
53.4 	healthful, and safe according to modern standards;
53.5 	(5) each occupational course or program of instruction or study must be of such quality 
53.6 	and content as to provide education and training that will adequately prepare enrolled 
53.7 	students for testing, licensing, and entry level positions as a cosmetologist, esthetician, or 
53.8 	nail technician;
53.9 	(6) the school must have coverage by professional liability insurance of at least $25,000 
53.10 	per incident and an accumulation of $150,000 for each premium year;
53.11 	(7) the applicant shall provide evidence of the school's compliance with section 176.182;
53.12 	(8) the applicant, except the state and its political subdivisions as described in section 
53.13 	471.617 13.02, subdivision 1 11, shall must file with the board a continuous corporate surety 
53.14 	bond in the amount of no less than ten percent of the preceding year's gross income from 
53.15 	student tuition, fees, and other required institutional charges, but in no event less than 
53.16 	$10,000, conditioned upon the faithful performance of all contracts and agreements with 
53.17 	students made by the applicant. New schools must base the bond amount on the anticipated 
53.18 	gross income from student tuition, fees, and other required institutional charges for the third 
53.19 	year of operation, but in no event less than $10,000. The applicant must compute the amount 
53.20 	of the surety bond and verify that the amount of the surety bond complies with this 
53.21 	subdivision. The bond shall run to the state of Minnesota board and to any person who may 
53.22 	have a cause of action against the applicant arising at any time after the bond is filed and 
53.23 	before it is canceled for breach of any contract or agreement made by the applicant with 
53.24 	any student. The aggregate liability of the surety for all breaches of the conditions of the 
53.25 	bond shall not exceed $10,000. The surety of the bond may cancel it upon giving 60 days' 
53.26 	notice in writing to the board and shall be relieved of liability for any breach of condition 
53.27 	occurring after the effective date of cancellation; and
53.28 	(9) the applicant must, at all times during the term of the license, employ appoint a 
53.29 	designated licensed school manager who maintains a cosmetology salon manager license.

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

54.1 	Sec. 36. Minnesota Statutes 2016, section 179A.20, is amended by adding a subdivision 
54.2 	to read:
54.3 		Subd. 2b.Limited by appropriation. The commissioner of management and budget 
54.4 	may not contract to pay more to employees in compensation and benefits in a biennium 
54.5 	than is permitted under an approved spending plan as provided in section 16A.14.

54.6 	Sec. 37. Minnesota Statutes 2016, section 270C.13, subdivision 1, is amended to read:
54.7 		Subdivision 1.Biennial report. The commissioner shall report to the legislature by 
54.8 	March 1 of each odd-numbered year on the overall incidence of the income tax, sales and 
54.9 	excise taxes, and property tax. The report shall present information on the distribution of 
54.10 	the tax burden as follows: (1) for the overall income distribution, using a systemwide 
54.11 	incidence measure such as the Suits index or other appropriate measures of equality and 
54.12 	inequality; (2) by income classes, including at a minimum deciles of the income distribution; 
54.13 	and (3) by other appropriate taxpayer characteristics. The report must also include information 
54.14 	on the distribution of the burden of federal taxes borne by Minnesota residents.

54.15 	Sec. 38. Minnesota Statutes 2016, section 353.27, subdivision 3c, is amended to read:
54.16 		Subd. 3c.Former MERF members; member and employer contributions. (a) For 
54.17 	the period July 1, 2015, through December 31, 2031, the member contributions for former 
54.18 	members of the Minneapolis Employees Retirement Fund and by the former Minneapolis 
54.19 	Employees Retirement Fund-covered employing units are governed by this subdivision.
54.20 	(b) The member contribution for a public employee who was a member of the former 
54.21 	Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of 
54.22 	the employee.
54.23 	(c) The employer regular contribution with respect to a public employee who was a 
54.24 	member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 
54.25 	percent of the salary of the employee.
54.26 	(d) For calendar years 2015 and 2016, The annual employer supplemental contribution 
54.27 	is the employing unit's share of $31,000,000. For calendar years 2017 through 2031, the 
54.28 	employer supplemental contribution is the employing unit's share of $21,000,000.
54.29 	(e) Each employing unit's share under paragraph (d) is the amount determined from an 
54.30 	allocation between each employing unit in the portion equal to the unit's employer 
54.31 	supplemental contribution paid or payable under Minnesota Statutes 2012, section 353.50, 
54.32 	during calendar year 2014.
55.1 	(f) The employer supplemental contribution amount under paragraph (d) for calendar 
55.2 	year 2015 must be invoiced by the executive director of the Public Employees Retirement 
55.3 	Association by July 1, 2015. The calendar year 2015 payment is payable in a single amount 
55.4 	on or before September 30, 2015. For subsequent calendar years, the employer supplemental 
55.5 	contribution under paragraph (d) must be invoiced on January 31 of each year and is payable 
55.6 	in two parts, with the first half payable on or before July 31 and with the second half payable 
55.7 	on or before December 15. Late payments are payable with compound interest at the rate 
55.8 	of 0.71 percent per month for each month or portion of a month that has elapsed after the 
55.9 	due date.
55.10 	(g) The employer supplemental contribution under paragraph (d) terminates on December 
55.11 	31, 2031.

55.12 	Sec. 39. Minnesota Statutes 2016, section 353.505, is amended to read:
55.13 	353.505 STATE CONTRIBUTIONS; FORMER MERF DIVISION.
55.14 	(a) On September 15, 2015, and September 15, 2016, and annually thereafter, the state 
55.15 	shall pay to the general employees retirement plan of the Public Employees Retirement 
55.16 	Association, with respect to the former MERF division, $6,000,000. By September 15 of 
55.17 	each year after 2016, the state shall pay to the general employees retirement plan of the 
55.18 	Public Employees Retirement Association, with respect to the former MERF division, 
55.19 	$16,000,000.
55.20 	(b) State contributions under this section end on September 15, 2031.

55.21 	Sec. 40. Minnesota Statutes 2016, section 471.6161, subdivision 8, is amended to read:
55.22 		Subd. 8.School districts; group health insurance coverage. (a) Any entity providing 
55.23 	group health insurance coverage to a school district must provide the school district with 
55.24 	school district-specific nonidentifiable aggregate claims records for the most recent 24 
55.25 	months within 30 days of the request.
55.26 	(b) School districts shall request proposals for group health insurance coverage as 
55.27 	provided in subdivision 2 from a minimum of three potential sources of coverage. One of 
55.28 	these requests must go to an administrator governed by chapter 43A. Entities referenced in 
55.29 	subdivision 1 must respond to requests for proposals received directly from a school district. 
55.30 	School districts that are self-insured must also follow these provisions, except as provided 
55.31 	in paragraph (f). School districts must make requests for proposals at least 150 days prior 
55.32 	to the expiration of the existing contract but not more frequently than once every 24 months. 
56.1 	The request for proposals must include the most recently available 24 months of 
56.2 	nonidentifiable aggregate claims data. The request for proposals must be publicly released 
56.3 	at or prior to its release to potential sources of coverage.
56.4 	(c) School district contracts for group health insurance must not be longer than twofour
56.5 	years unless the exclusive representative of the largest employment group and the school 
56.6 	district agree otherwise.
56.7 	(d) All initial proposals shall be sealed upon receipt until they are all opened no less 
56.8 	than 90 days prior to the plan's renewal date in the presence of up to three representatives 
56.9 	selected by the exclusive representative of the largest group of employees. Section 13.591, 
56.10 	subdivision 3, paragraph (b), applies to data in the proposals. The representatives of the 
56.11 	exclusive representative must maintain the data according to this classification and are 
56.12 	subject to the remedies and penalties under sections 13.08 and 13.09 for a violation of this 
56.13 	requirement.
56.14 	(e) A school district, in consultation with the same representatives referenced in paragraph 
56.15 	(d), may continue to negotiate with any entity that submitted a proposal under paragraph 
56.16 	(d) in order to reduce costs or improve services under the proposal. Following the negotiations 
56.17 	any entity that submitted an initial proposal may submit a final proposal incorporating the 
56.18 	negotiations, which is due no less than 75 days prior to the plan's renewal date. All the final 
56.19 	proposals submitted must be opened at the same time in the presence of up to three 
56.20 	representatives selected by the exclusive representative of the largest group of employees. 
56.21 	Notwithstanding section 13.591, subdivision 3, paragraph (b), following the opening of the 
56.22 	final proposals, all the proposals, including any made under paragraph (d), and other data 
56.23 	submitted in connection with the proposals are public data. The school district may choose 
56.24 	from any of the initial or final proposals without further negotiations and in accordance 
56.25 	with subdivision 5, but not sooner than 15 days after the proposals become public data.
56.26 	(f) School districts that are self-insured shall follow all of the requirements of this section, 
56.27 	except that:
56.28 	(1) their requests for proposals may be for third-party administrator services, where 
56.29 	applicable;
56.30 	(2) these requests for proposals must be from a minimum of three different sources, 
56.31 	which may include both entities referenced in subdivision 1 and providers of third-party 
56.32 	administrator services;
57.1 	(3) for purposes of fulfilling the requirement to request a proposal for group insurance 
57.2 	coverage from an administrator governed by chapter 43A, self-insured districts are not 
57.3 	required to include in the request for proposal the coverage to be provided;
57.4 	(4) a district that is self-insured on or before the date of enactment, or that is self-insured 
57.5 	with more than 1,000 insured lives, or a district in which the school board adopted a motion 
57.6 	on or before May 14, 2014, to approve a self-insured health care plan to be effective July 
57.7 	1, 2014, may, but need not, request a proposal from an administrator governed by chapter 
57.8 	43A;
57.9 	(5) (3) requests for proposals must be sent to providers no less than 90 days prior to the 
57.10 	expiration of the existing contract; and
57.11 	(6) (4) proposals must be submitted at least 60 days prior to the plan's renewal date and 
57.12 	all proposals shall be opened at the same time and in the presence of the exclusive 
57.13 	representative, where applicable.
57.14 	(g) Nothing in this section shall restrict the authority granted to school district boards 
57.15 	of education by section 471.59, except that districts will not be considered self-insured for 
57.16 	purposes of this subdivision solely through participation in a joint powers arrangement.
57.17 	(h) An entity providing group health insurance to a school district under a multiyear 
57.18 	contract must give notice of any rate or plan design changes applicable under the contract 
57.19 	at least 90 days before the effective date of any change. The notice must be given to the 
57.20 	school district and to the exclusive representatives of employees.
57.21 	(i) The exclusive representative of the largest group of employees shall comply with 
57.22 	this subdivision and must not exercise any of their abilities under section 43A.316, 
57.23 	subdivision 5, notwithstanding anything contained in that section, or any other law to the 
57.24 	contrary.

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

57.26 	Sec. 41. Minnesota Statutes 2016, section 471.617, subdivision 2, is amended to read:
57.27 		Subd. 2.Jointly. Any two or more statutory or home rule charter cities, counties, school 
57.28 	districts, or instrumentalities thereof which together have more than 100 employees may 
57.29 	jointly self-insure for any employee health benefits including long-term disability, but not 
57.30 	for employee life benefits, subject to the same requirements as an individual self-insurer 
57.31 	under subdivision 1. Self-insurance pools under this section are subject to section 62L.045. 
57.32 	A self-insurance pool established and operated by one or more service cooperatives governed 
57.33 	by section 123A.21 to provide coverage described in this subdivision qualifies under this 
58.1 	subdivision, but the individual school district members of such a pool shall not be considered 
58.2 	to be self-insured for purposes of section 471.6161, subdivision 8, paragraph (f). The 
58.3 	commissioner of commerce may adopt rules pursuant to chapter 14, providing standards or 
58.4 	guidelines for the operation and administration of self-insurance pools.

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

58.6 	Sec. 42. Minnesota Statutes 2016, section 508.12, subdivision 1, is amended to read:
58.7 		Subdivision 1.Examiner and deputy examiner. The judges of the district court shall 
58.8 	appoint a competent attorney in each county within their respective districts to be an examiner 
58.9 	of titles and legal adviser to the registrar in said county, to which examiner all applications 
58.10 	to register title to land are referred without further order, and may appoint attorneys to serve 
58.11 	as deputy examiners who shall act in the name of the examiner and under the examiner's 
58.12 	supervision and control, and the deputy's acts shall be the acts of the examiners. The examiner 
58.13 	of titles and deputy examiners shall hold office subject to the will and discretion of the 
58.14 	district court by whom appointed. The examiner's compensation and that of the examiner's 
58.15 	deputies shall be fixed and determined by the court and paid in the same manner as the 
58.16 	compensation of other county employees is paid except that in all counties having fewer 
58.17 	than 75,000 inhabitants, and in Stearns, Dakota, Scott, Wright, Sherburne, and Olmsted 
58.18 	Counties the fees and compensation of the examiners for services as legal adviser to the 
58.19 	registrar shall be determined by the judges of the district court and paid in the same manner 
58.20 	as the compensation of other county employees is paid, but in every other instance shall be 
58.21 	paid by the person applying to have the person's title registered or for other action or relief 
58.22 	which requires the services, certification or approval of the examiner.

58.23 	Sec. 43. Minnesota Statutes 2016, section 518A.79, is amended by adding a subdivision 
58.24 	to read:
58.25 		Subd. 3a.Open meetings. Except as otherwise provided in this section, the task force 
58.26 	is subject to chapter 13D. A meeting of the task force occurs when a quorum is present and 
58.27 	the members receive information, discuss, or take action on any matter relating to the duties 
58.28 	of the task force. The task force may conduct meetings as provided in section 13D.015 or 
58.29 	13D.02. The task force may conduct meetings at any location in the state that is appropriate 
58.30 	for the purposes of the task force as long as the location is open and accessible to the public. 
58.31 	For legislative members of the task force, enforcement of this subdivision is governed by 
58.32 	section 3.055, subdivision 2. For nonlegislative members of the task force, enforcement of 
58.33 	this subdivision is governed by section 13D.06, subdivisions 1 and 2.

59.1 	EFFECTIVE DATE. This section is effective January 1, 2018.

59.2 	Sec. 44. Laws 2016, chapter 127, section 8, is amended to read:
59.3 	Sec. 8. EFFECTIVE DATE; APPLICATION.
 59.4 	Sections 1 to 7 are effective the day following final enactment. With respect to eyelash 
59.5 	technicians, the Board of Cosmetologist Examiners must not enforce sections 1 to 7 until 
59.6 	July 1, 2017 February 1, 2018. Any educational or training requirements developed by the 
59.7 	board regarding eyelash technicians must be 14 hours.

59.8 	Sec. 45. COMMISSIONER OF REVENUE TO DETERMINE ADEQUACY OF 
59.9 	CURRENT RULES AND VALUATION PRACTICES FOR STATE-ASSESSED 
59.10 	PIPELINES.
 59.11 	The commissioner of revenue must review all current rules and practices relating to the 
59.12 	valuation of pipeline companies that are assessed by the state. The commissioner must 
59.13 	determine whether current rules and practices provide accurate estimates of market value. 
59.14 	By February 1, 2018, the commissioner must prepare testimony for the house of 
59.15 	representatives and senate committees having jurisdiction over property taxes recommending 
59.16 	changes to the rules and practices to provide more accurate assessments and reduce the 
59.17 	number and amount of judgments against the state and counties for state-assessed pipeline 
59.18 	property. Costs associated with conducting the review required by this section must be paid 
59.19 	from existing funds appropriated to the commissioner by law.

59.20 	Sec. 46. OFFICE OF MN.IT SERVICES; PERFORMANCE OUTCOMES 
59.21 	REQUIRED.
 59.22 		Subdivision 1.Completion of agency consolidation. No later than December 31, 2018, 
59.23 	the state chief information officer must complete the executive branch information technology 
59.24 	consolidation required by Laws 2011, First Special Session chapter 10, article 4. The head 
59.25 	of any state agency subject to consolidation must assist the state chief information officer 
59.26 	as necessary to implement the requirements of this subdivision.
59.27 		Subd. 2.Information technology efficiencies and solutions. No later than December 
59.28 	31, 2018, the state chief information officer shall:
59.29 	(1) host at least 25 percent of all state agency servers on a public cloud solution;
59.30 	(2) store at least 35 percent of all state agency data on a public cloud solution; and
59.31 	(3) operate no more than six data centers statewide.
60.1 		Subd. 3.Enterprise services; personnel efficiencies. No later than June 30, 2019, the 
60.2 	state chief information officer shall reduce the Office of MN.IT Services' total cost for 
60.3 	enterprise services personnel by at least $3,000,000.
60.4 		Subd. 4.Legislative report; application consolidation. No later than January 1, 2018, 
60.5 	the state chief information officer must submit a report to the chairs and ranking minority 
60.6 	members of the house of representatives and senate committees with jurisdiction over state 
60.7 	government finance on the status of business application software consolidation across state 
60.8 	agencies. At a minimum, the report must describe the outcomes achieved to date, a plan 
60.9 	and timeline for continued consolidation of business application software with measurable 
60.10 	outcome goals, and recommendations, if any, on legislation necessary to facilitate 
60.11 	achievement of these goals.

60.12 	Sec. 47. INITIAL TRANSIT FINANCIAL ACTIVITY REPORTING.
 60.13 	(a) The first transit financial activity review and report submitted under Minnesota 
60.14 	Statutes, section 3.972, subdivision 4, must include financial information from the period 
60.15 	beginning on January 1, 2016, and through the end of the fiscal quarter immediately preceding 
60.16 	the date of the report.
60.17 	(b) The legislative auditor must provide a copy of the review under paragraph (a) to 
60.18 	each county that is party to the joint powers agreement under Minnesota Statutes, section 
60.19 	297A.992.

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

60.21 	Sec. 48. LIMIT ON EXPENDITURES FOR ADVERTISING.
 60.22 	During the fiscal years ending June 30, 2018, and June 30, 2019, an executive branch 
60.23 	agency's spending on advertising and promotions may not exceed 90 percent of the amount 
60.24 	the agency spent on advertising and promotions during the fiscal year ending June 30, 2016. 
60.25 	The commissioner of management and budget must ensure compliance with this limit and 
60.26 	may issue guidelines and policies to executive agencies. The commissioner may forbid an 
60.27 	agency from engaging in advertising as the commissioner determines necessary to ensure 
60.28 	compliance with this section. This section does not apply to the Minnesota Lottery, Explore 
60.29 	Minnesota Tourism, or the Minnesota State Colleges and Universities. Spending during the 
60.30 	biennium ending June 30, 2019, on advertising relating to a declared emergency, an 
60.31 	emergency, or a disaster, as those terms are defined in Minnesota Statutes, section 12.03, 
60.32 	is excluded for purposes of this section.

61.1 	Sec. 49. TRANSITION; STATE AUDITOR ENTERPRISE FUND.
 61.2 	Notwithstanding any law to the contrary, receipts received by the state auditor on or 
61.3 	after July 1, 2017, from examinations conducted by the state auditor under Minnesota 
61.4 	Statutes, chapter 6, must be credited to the general fund. Amounts in the state auditor 
61.5 	enterprise fund at the end of fiscal year 2017 are transferred to the general fund.

61.6 	Sec. 50. REIMBURSEMENT OF LEGAL COSTS FOR WRIGHT, BECKER, AND 
61.7 	RAMSEY COUNTIES.
 61.8 	The state auditor shall reimburse Wright, Becker, and Ramsey Counties for legal fees 
61.9 	incurred and costs and disbursements made as a result of defending against the state auditor's 
61.10 	lawsuit against them.

61.11 	Sec. 51. LIMIT ON INCREASE IN MANAGERIAL COMPENSATION.
 61.12 	(a) Except as provided in paragraph (b), during the biennium ending June 30, 2019, an 
61.13 	employee covered by the managerial plan in Minnesota Statutes, section 43A.18, subdivision 
61.14 	3, may not be granted a percentage increase in annual salary that exceeds the lesser of:
61.15 	(1) the percentage increase in Minnesota median household income, as determined by 
61.16 	the American Community Survey compiled by the United States Bureau of the Census, for 
61.17 	the most recent 12-month period for which data is available; or
61.18 	(2) the percentage increase in the Consumer Price Index, as determined by the United 
61.19 	States Bureau of Labor Statistics, for the most recent 12-month period for which data is 
61.20 	available.
61.21 	(b) This section does not apply to an employee whose salary is established according to 
61.22 	Minnesota Statutes, section 15A.083.

61.23 	Sec. 52. SALARY LIMIT.
 61.24 	(a) During the fiscal year ending June 30, 2018, the aggregate amount spent by all 
61.25 	executive branch agencies on employee salaries may not exceed 101 percent of the aggregate 
61.26 	amount these agencies spent on employee salaries in the fiscal year ending June 30, 2017.
61.27 	(b) During the fiscal year ending June 30, 2019, the aggregate amount spent by all 
61.28 	executive branch agencies on employee salaries may not exceed 103 percent of the aggregate 
61.29 	amount these agencies spent on employee salaries in the fiscal year ending June 30, 2017.
62.1 	(c) For purposes of this section, "executive branch" has the meaning given in Minnesota 
62.2 	Statutes, section 43A.02, subdivision 22, and includes the Minnesota State Colleges and 
62.3 	Universities but not constitutional offices.

62.4 	Sec. 53. ICE PALACE ON CAPITOL GROUNDS AUTHORIZED.
 62.5 		Subdivision 1.Use agreement; terms required. The commissioner of administration 
62.6 	may enter a use agreement with the St. Paul Festival and Heritage Foundation for the 
62.7 	construction, operation, and removal of an ice palace and related temporary structures on 
62.8 	the grounds of the State Capitol complex. If a use agreement for this purpose is entered, the 
62.9 	terms must include the following:
62.10 	(1) mutually agreed upon beginning and end dates for access to the grounds for 
62.11 	construction, operation, and removal of the ice palace and related temporary structures;
62.12 	(2) notwithstanding Minnesota Rules, part 7525.0400, an allowance for the St. Paul 
62.13 	Festival and Heritage Foundation to establish fees for admission to the ice palace and for 
62.14 	participation in related activities, and for vendors to sell concessions subject to terms 
62.15 	negotiated in the use agreement. Any fees established must allow a reasonable opportunity 
62.16 	for all Minnesotans, regardless of income, to access the palace and participate in related 
62.17 	activities, and must allow free or discounted admission to members of the military, military 
62.18 	veterans, and their families. A fee may not be charged for general admission to the Capitol 
62.19 	grounds or, to the extent practicable, for access to public memorials and monuments located 
62.20 	on the Capitol grounds;
62.21 	(3) notwithstanding Minnesota Statutes, section 15B.28, and related rules of the Capitol 
62.22 	Area Architectural and Planning Board, an allowance for the St. Paul Festival and Heritage 
62.23 	Foundation to erect advertising devices promoting the ice palace and its sponsors and donors, 
62.24 	subject to terms negotiated in the use agreement;
62.25 	(4) a restriction on private events that limit public access to the ice palace or surrounding 
62.26 	Capitol grounds, without prior approval of the commissioner of administration; and
62.27 	(5) a requirement that, following removal of the ice palace and related temporary 
62.28 	structures, the St. Paul Festival and Heritage Foundation restore the Capitol grounds to the 
62.29 	same condition as existed prior to their construction.
62.30 		Subd. 2.Additional terms. In addition to the terms required by subdivision 1, a use 
62.31 	agreement authorized by this section may include additional terms as necessary to preserve 
62.32 	the integrity, dignity, and security of the State Capitol building, the Capitol grounds, and 
63.1 	the surrounding public buildings, memorials, and monuments, and to ensure compliance 
63.2 	with other applicable laws governing commercial activity on public property.
63.3 		Subd. 3.Costs, expenses, and liabilities. Unless expressly provided in the use agreement, 
63.4 	any costs or expenses incurred by the state or the city of St. Paul in implementing a use 
63.5 	agreement entered under this section must be paid or reimbursed by the St. Paul Festival 
63.6 	and Heritage Foundation. Notwithstanding Minnesota Statutes, section 3.736, subdivision 
63.7 	1, and Minnesota Statutes, section 466.02, the state, the city of St. Paul, and their employees 
63.8 	are not liable for losses incurred during the construction, operation, or removal of an ice 
63.9 	palace or related temporary structures, or losses incurred by a person while visiting the ice 
63.10 	palace or participating in related activities.

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

63.12 	Sec. 54. WAITE PARK; HOTEL INSPECTION.
 63.13 	(a) Notwithstanding any other law to the contrary and in addition to any other requirement 
63.14 	in law, the city of Waite Park may adopt an ordinance to require a hotel, motel, or lodging 
63.15 	establishment operating within the city's jurisdiction to have a valid license issued by the 
63.16 	city. The license may prohibit the licensee from:
63.17 	(1) knowingly allowing a room to be occupied for purposes of sex trafficking;
63.18 	(2) knowingly allowing a room to be occupied for the purposes of illegal drug activity;
63.19 	(3) knowingly allowing a room to be occupied by a minor for the consumption of 
63.20 	alcoholic beverages;
63.21 	(4) prohibiting the inspection of the licensed premises;
63.22 	(5) failing to report observed or suspected illegal activity to the police in a reasonable 
63.23 	period of time; and
63.24 	(6) failure to maintain the licensed premises to all building, fire, mechanical, zoning or 
63.25 	licensing codes.
63.26 	The ordinance may provide for inspections related to the activities the license addresses. 
63.27 	The city may collect a reasonable fee related to the cost of issuing the license and conducting 
63.28 	inspections.
63.29 	(b) "Hotel," "motel," and "lodging establishment" are as defined in Minnesota Statutes, 
63.30 	section 157.15.
64.1 	(c) The authority in this section does not replace or diminish the authority of the 
64.2 	community health board to inspect and license any hotel, motel, or lodging establishment 
64.3 	in the city.

64.4 	EFFECTIVE DATE. This section is effective the day following final enactment without 
64.5 	local approval, as provided in Minnesota Statutes, section 645.023, subdivision 1, paragraph 
64.6 	(a).

64.7 	Sec. 55. EYELASH TECHNICIAN GRANDFATHERING.
 64.8 	(a) The board must issue grandfathered eyelash technician licenses no later than February 
64.9 	1, 2018, under the conditions in this section.
64.10 	(b) A complete grandfathering application for an eyelash technician license must be 
64.11 	received in the board office between August 1, 2017, and January 31, 2018, and must contain:
64.12 	(1) proof of a high school diploma or equivalent;
64.13 	(2) proof of completion of an eyelash extension training course before July 1, 2017;
64.14 	(3) proof of completion of a six-hour board-approved public health and safety course 
64.15 	provided by a board-licensed school or a board-recognized professional association organized 
64.16 	under Minnesota Statutes, chapter 317A. Four hours must be related to health, safety, and 
64.17 	infection control and two hours must be related to Minnesota laws and rules governing 
64.18 	cosmetology;
64.19 	(4) original passing results no more than one year old of board-approved laws and rules 
64.20 	test and theory tests; and
64.21 	(5) the practitioner fees required under Minnesota Statutes, section 155A.25.
64.22 	(c) A complete grandfathering application for an eyelash salon manager license must 
64.23 	be received in the board office between August 1, 2017, and January 31, 2018, and must 
64.24 	contain:
64.25 	(1) proof of a high school diploma or equivalent;
64.26 	(2) proof of completion of an eyelash extension training course before July 1, 2017;
64.27 	(3) documentation of at least 2,700 hours of experience performing eyelash extensions 
64.28 	within the last three years;
64.29 	(4) original passing results no more than one year old of board-approved laws and rules 
64.30 	test and theory tests;
65.1 	(5) original passing results no more than one year old of board-approved salon manager 
65.2 	test;
65.3 	(6) proof of a six-hour board-approved public health and safety course provided by a 
65.4 	board-licensed school or a board-recognized professional association organized under 
65.5 	Minnesota Statutes, chapter 317A. Four hours must be related to infection control and two 
65.6 	hours must be related to Minnesota laws and rules; and
65.7 	(7) the practitioner fees required under Minnesota Statutes, section 155A.25.
65.8 	(d) Grandfathered licenses must not be expedited under Minnesota Statutes, section 
65.9 	155A.25, subdivision 7. The application timelines under Minnesota Statutes, section 155A.25, 
65.10 	subdivisions 5, 6, and 8, do not apply to grandfathered licenses.

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

65.12 	Sec. 56. EYELASH TECHNICIAN RULEMAKING.
 65.13 	The Board of Cosmetologist Examiners shall adopt rules governing the eyelash technician 
65.14 	and salon licenses, which must include scope of practice, the conditions and process of 
65.15 	issuing and renewing the license, requirements related to education and testing, and 14 hours 
65.16 	of training regarding application of eyelash extensions in a board-licensed school. The board 
65.17 	may use the expedited rule process in Minnesota Statutes, section 14.389. The grant of 
65.18 	rulemaking authority under this section expires May 31, 2019.

65.19 	Sec. 57. EYELASH TECHNICIAN LICENSING.
 65.20 	The Board of Cosmetologist Examiners must not issue an eyelash practitioner license 
65.21 	before February 1, 2018, except for grandfathered licenses issued under section 55. The 
65.22 	Board of Cosmetologist Examiners must not require a person to have an eyelash practitioner 
65.23 	license for eyelash extensions before February 1, 2018.

65.24 	Sec. 58. REPEALER.
 65.25 		Subdivision 1.State auditor enterprise fund. Minnesota Statutes 2016, section 6.581, 
65.26 	subdivision 1, is repealed.
65.27 		Subd. 2.Washington, D.C. office. Minnesota Statutes 2016, section 4.46, is repealed.

65.28 	ARTICLE 3
65.29 	STATE BUDGETING TECHNICAL

65.30 	Section 1. Minnesota Statutes 2016, section 15.0596, is amended to read:
66.1 	15.0596 ADDITIONAL COMPENSATION FROM CONTINGENT FUND 
66.2 	PROHIBITED.
66.3 	In all cases where the compensation of an officer of the state is fixed by law at a specified 
66.4 	sum, it shall be unlawful for any such officer or employee to receive additional compensation 
66.5 	for the performance of official services out of the contingent fund of the officer or the 
66.6 	department, and it shall be unlawful for the head of any department of the state government 
66.7 	to direct the payment of such additional compensation out of the contingent fund; and the 
66.8 	commissioner of management and budget is hereby prohibited from issuing a warrant
66.9 	payment upon such contingent fund in payment of such additional compensation.
66.10 	Every person offending against the provisions of this section shall be guilty of a 
66.11 	misdemeanor.

66.12 	Sec. 2. Minnesota Statutes 2016, section 15.191, subdivision 1, is amended to read:
66.13 		Subdivision 1.Emergency disbursements. Imprest cash funds for the purpose of making 
66.14 	minor disbursements, providing for change, and providing employees with travel advances 
66.15 	or a portion or all of their payroll warrant where the warrant payment has not been received 
66.16 	through the payroll system, may be established by state departments or agencies from 
66.17 	existing appropriations in the manner prescribed by this section.

66.18 	Sec. 3. Minnesota Statutes 2016, section 15.191, subdivision 3, is amended to read:
66.19 		Subd. 3.Warrant Payment against designated appropriation. Imprest cash funds 
66.20 	established under this section shall be created by warrant drawn payment issued against the 
66.21 	appropriation designated by the commissioner of management and budget.

66.22 	Sec. 4. Minnesota Statutes 2016, section 16A.065, is amended to read:
66.23 	16A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES 
66.24 	DOCUMENTS.
66.25 	Notwithstanding section 16A.41, subdivision 1, the commissioner may allow an agency 
66.26 	to make advance deposits or payments for software or software maintenance services for 
66.27 	state-owned or leased electronic data processing equipment, for information technology 
66.28 	hosting services, for sole source maintenance agreements where it is not cost-effective to 
66.29 	pay in arrears, for exhibit booth space or boat slip rental when required by the renter to 
66.30 	guarantee the availability of space, for registration fees where advance payment is required 
66.31 	or advance payment discount is provided, and for newspaper, magazine, and other 
66.32 	subscription fees, and other costs where advance payment discount is provided or are
67.1 	customarily paid for in advance. The commissioner may also allow advance deposits by 
67.2 	any department with the Library of Congress and federal Supervisor of Documents for items 
67.3 	to be purchased from those federal agencies.

67.4 	Sec. 5. Minnesota Statutes 2016, section 16A.13, subdivision 2a, is amended to read:
67.5 		Subd. 2a.Procedure. The commissioner shall see that the deduction for the withheld 
67.6 	tax is made from an employee's pay on the payroll abstract. The commissioner shall approve 
67.7 	one warrant payable payment to the commissioner for the total amount deducted on the 
67.8 	abstract. Deductions from the pay of an employee paid direct by an agency shall be made 
67.9 	by the employee's payroll authority. A later deduction must correct an error made on an 
67.10 	earlier deduction. The paying authority shall see that a warrant or check payment for the 
67.11 	deductions is promptly sent to the commissioner. The commissioner shall deposit the amount 
67.12 	of the warrant or check payment to the credit of the proper federal authority or other person 
67.13 	authorized by federal law to receive it.

67.14 	Sec. 6. Minnesota Statutes 2016, section 16A.134, is amended to read:
67.15 	16A.134 CHARITABLE ORGANIZATIONS PAYROLL DEDUCTIONS.
67.16 	An employee's contribution to a registered combined charitable organization defined in 
67.17 	section 43A.50 may be deducted from the employee's pay. On the employee's written request, 
67.18 	the commissioner shall deduct a requested amount from the pay of the employee for each 
67.19 	pay period. The commissioner shall issue a warrant payment in that amount to the specified 
67.20 	organization.

67.21 	Sec. 7. Minnesota Statutes 2016, section 16A.15, subdivision 3, is amended to read:
67.22 		Subd. 3.Allotment and encumbrance. (a) A payment may not be made without prior 
67.23 	obligation. An obligation may not be incurred against any fund, allotment, or appropriation 
67.24 	unless the commissioner has certified a sufficient unencumbered balance or the accounting 
67.25 	system shows sufficient allotment or encumbrance balance in the fund, allotment, or 
67.26 	appropriation to meet it. The commissioner shall determine when the accounting system 
67.27 	may be used to incur obligations without the commissioner's certification of a sufficient 
67.28 	unencumbered balance. An expenditure or obligation authorized or incurred in violation of 
67.29 	this chapter is invalid and ineligible for payment until made valid. A payment made in 
67.30 	violation of this chapter is illegal. An employee authorizing or making the payment, or 
67.31 	taking part in it, and a person receiving any part of the payment, are jointly and severally 
67.32 	liable to the state for the amount paid or received. If an employee knowingly incurs an 
68.1 	obligation or authorizes or makes an expenditure in violation of this chapter or takes part 
68.2 	in the violation, the violation is just cause for the employee's removal by the appointing 
68.3 	authority or by the governor if an appointing authority other than the governor fails to do 
68.4 	so. In the latter case, the governor shall give notice of the violation and an opportunity to 
68.5 	be heard on it to the employee and to the appointing authority. A claim presented against 
68.6 	an appropriation without prior allotment or encumbrance may be made valid on investigation, 
68.7 	review, and approval by the agency head in accordance with the commissioner's policy, if 
68.8 	the services, materials, or supplies to be paid for were actually furnished in good faith 
68.9 	without collusion and without intent to defraud. The commissioner may then draw a warrant 
68.10 	to pay the claim just as properly allotted and encumbered claims are paid.
68.11 	(b) The commissioner may approve payment for materials and supplies in excess of the 
68.12 	obligation amount when increases are authorized by section 16C.03, subdivision 3.
68.13 	(c) To minimize potential construction delay claims, an agency with a project funded 
68.14 	by a building appropriation may allow a contractor to proceed with supplemental work 
68.15 	within the limits of the appropriation before money is encumbered. Under this circumstance, 
68.16 	the agency may requisition funds and allow contractors to expeditiously proceed with a 
68.17 	construction sequence. While the contractor is proceeding, the agency shall immediately 
68.18 	act to encumber the required funds.

68.19 	Sec. 8. Minnesota Statutes 2016, section 16A.17, subdivision 5, is amended to read:
68.20 		Subd. 5.Payroll duties. When the department prepares the payroll for an agency, the 
68.21 	commissioner assumes the agency head's duties to make authorized or required deductions 
68.22 	from, or employer contributions on, the pay of the agency's employees and to prepare and 
68.23 	issue the necessary warrants payments.

68.24 	Sec. 9. Minnesota Statutes 2016, section 16A.272, subdivision 3, is amended to read:
68.25 		Subd. 3.Section 7.19 16A.271 to apply.  The provisions of Minnesota Statutes 1941, 
68.26 	section 7.19 16A.271, shall apply to deposits of securities made pursuant to this section.

68.27 	Sec. 10. Minnesota Statutes 2016, section 16A.40, is amended to read:
68.28 	16A.40 WARRANTS AND ELECTRONIC FUND TRANSFERS.
68.29 	Money must not be paid out of the state treasury except upon the warrant of the 
68.30 	commissioner or an electronic fund transfer approved by the commissioner. Warrants must 
68.31 	be drawn on printed blanks that are in numerical order. The commissioner shall enter, in 
69.1 	numerical order in a warrant payment register, the number, amount, date, and payee for 
69.2 	every warrant payment issued.
69.3 	The commissioner may require payees to supply their bank routing information to enable 
69.4 	the payments to be made through an electronic fund transfer.

69.5 	Sec. 11. Minnesota Statutes 2016, section 16A.42, subdivision 2, is amended to read:
69.6 		Subd. 2.Approval. If the claim is approved, the commissioner shall complete and sign 
69.7 	a warrant issue a payment in the amount of the claim.

69.8 	Sec. 12. Minnesota Statutes 2016, section 16A.42, subdivision 4, is amended to read:
69.9 		Subd. 4.Register. The commissioner shall enter a warrant payment in the warrant 
69.10 	payment register as if it were a cash payment.

69.11 	Sec. 13. Minnesota Statutes 2016, section 16A.42, is amended by adding a subdivision to 
69.12 	read:
69.13 		Subd. 5.Invalid claims. If the commissioner determines that a claim is invalid after 
69.14 	issuing a warrant, the commissioner may void an unpaid warrant. The commissioner is not 
69.15 	liable to any holder who took the void warrant for value.

69.16 	Sec. 14. Minnesota Statutes 2016, section 16A.56, is amended to read:
69.17 	16A.56 COMMISSIONER'S RECEIPT AND CLAIM DUTIES.
69.18 	The commissioner or a designee shall examine every receipt and claim, and if proper, 
69.19 	approve them, name the account to be charged or credited, and issue warrantspayments to 
69.20 	pay claims.

69.21 	Sec. 15. Minnesota Statutes 2016, section 16A.671, subdivision 1, is amended to read:
69.22 		Subdivision 1.Authority; advisory recommendation. To ensure that cash is available 
69.23 	when needed to pay warrants make payments drawn on the general fund under appropriations 
69.24 	and allotments, the commissioner may (1) issue certificates of indebtedness in anticipation 
69.25 	of the collection of taxes levied for and other revenues appropriated to the general fund for 
69.26 	expenditure during each biennium; and (2) issue additional certificates to refund outstanding 
69.27 	certificates and interest on them, under the Constitution, article XI, section 6.

70.1 	Sec. 16. Minnesota Statutes 2016, section 16B.37, subdivision 4, is amended to read:
70.2 		Subd. 4.Work of department for another. To avoid duplication and improve efficiency, 
70.3 	the commissioner may direct an agency to do work for another agency or may direct a 
70.4 	division or section of an agency to do work for another division or section within the same 
70.5 	agency and shall require reimbursement for the work. Reimbursements received by an 
70.6 	agency are reappropriated to the account making the original expenditure in accordance 
70.7 	with the transfer warrant procedure established by the commissioner of management and 
70.8 	budget.

70.9 	Sec. 17. Minnesota Statutes 2016, section 16D.03, subdivision 2, is amended to read:
70.10 		Subd. 2.State agency reports. State agencies shall report quarterly to the commissioner 
70.11 	of management and budget the debts owed to them. The commissioner of management and 
70.12 	budget, in consultation with the commissioners of revenue and human services, and the 
70.13 	attorney general, shall establish internal guidelines for the recognition, tracking, and 
70.14 	reporting, and collection of debts owed the state. The internal guidelines must include 
70.15 	accounting standards, performance measurements, and uniform reporting requirements 
70.16 	applicable to all state agencies. The commissioner of management and budget shall require 
70.17 	a state agency to recognize, track, report, and attempt to collect debts according to the 
70.18 	internal guidelines. The commissioner, in consultation with the commissioner of management 
70.19 	and budget and the attorney general, shall establish internal guidelines for the collection of 
70.20 	debt owed to the state.

70.21 	Sec. 18. Minnesota Statutes 2016, section 16D.09, subdivision 1, is amended to read:
70.22 		Subdivision 1.Generally. When a debt is determined by a state agency to be 
70.23 	uncollectible, the debt may be written off by the state agency from the state agency's financial 
70.24 	accounting records and no longer recognized as an account receivable for financial reporting 
70.25 	purposes. A debt is considered to be uncollectible when (1) all reasonable collection efforts 
70.26 	have been exhausted, (2) the cost of further collection action will exceed the amount 
70.27 	recoverable, (3) the debt is legally without merit or cannot be substantiated by evidence, 
70.28 	(4) the debtor cannot be located, (5) the available assets or income, current or anticipated, 
70.29 	that may be available for payment of the debt are insufficient, (6) the debt has been 
70.30 	discharged in bankruptcy, (7) the applicable statute of limitations for collection of the debt 
70.31 	has expired, or (8) it is not in the public interest to pursue collection of the debt. The 
70.32 	determination of the uncollectibility of a Uncollectible debt must be reported by the state 
70.33 	agency along with the basis for that decision as part of its quarterly reports to the 
71.1 	commissioner of management and budget. The basis for the determination of the 
71.2 	uncollectibility of the debt must be maintained by the state agency. Determining that the 
71.3 	debt is uncollectible does not cancel the legal obligation of the debtor to pay the debt.

71.4 	Sec. 19. Minnesota Statutes 2016, section 21.116, is amended to read:
71.5 	21.116 EXPENSES.
71.6 	All necessary expenses incurred in carrying out the provisions of sections 21.111 to 
71.7 	21.122 and the compensation of officers, inspectors, and employees appointed, designated, 
71.8 	or employed by the commissioner, as provided in such sections, together with their necessary 
71.9 	traveling expenses, together with the traveling expenses of the members of the advisory 
71.10 	seed potato certification committee, and other expenses necessary in attending committee 
71.11 	meetings, shall be paid from, and only from, the seed potato inspection account, on order 
71.12 	of the commissioner and commissioner of management and budget's voucher warrant budget.

71.13 	Sec. 20. Minnesota Statutes 2016, section 43A.30, subdivision 2, is amended to read:
71.14 		Subd. 2.Payroll deduction. If an eligible person who is on any payroll of the state or 
71.15 	an eligible person's dependents is enrolled for any of the optional coverages made available 
71.16 	by the commissioner pursuant to section 43A.26 the commissioner of management and 
71.17 	budget, upon the person's written order, shall deduct from the salary or wages of the person 
71.18 	those amounts required from time to time to maintain the optional coverages in force, and 
71.19 	issue a warrant payment therefor to the appropriate carrier.

71.20 	Sec. 21. Minnesota Statutes 2016, section 43A.49, is amended to read:
71.21 	43A.49 VOLUNTARY UNPAID LEAVE OF ABSENCE.
71.22 	(a) Appointing authorities in state government may allow each employee to take unpaid 
71.23 	leaves of absence for up to 1,040 hours in each two-year period beginning July 1 of each 
71.24 	odd-numbered year. Each appointing authority approving such a leave shall allow the 
71.25 	employee to continue accruing vacation and sick leave, be eligible for paid holidays and 
71.26 	insurance benefits, accrue seniority, and accrue service credit and credited salary in retirement 
71.27 	plans as if the employee had actually been employed during the time of leave. An employee 
71.28 	covered by the unclassified plan may voluntarily make the employee contributions to the 
71.29 	unclassified plan during the leave of absence. If the employee makes these contributions, 
71.30 	the appointing authority must make the employer contribution. If the leave of absence is 
71.31 	for one full pay period or longer, any holiday pay shall be included in the first payroll warrant
71.32 	payment after return from the leave of absence. The appointing authority shall attempt to 
72.1 	grant requests for the unpaid leaves of absence consistent with the need to continue efficient 
72.2 	operation of the agency. However, each appointing authority shall retain discretion to grant 
72.3 	or refuse to grant requests for leaves of absence and to schedule and cancel leaves, subject 
72.4 	to the applicable provisions of collective bargaining agreements and compensation plans.
72.5 	(b) To receive eligible service credit and credited salary in a defined benefit plan, the 
72.6 	member shall pay an amount equal to the applicable employee contribution rates. If an 
72.7 	employee pays the employee contribution for the period of the leave under this section, the 
72.8 	appointing authority must pay the employer contribution. The appointing authority may, at 
72.9 	its discretion, pay the employee contributions. Contributions must be made in a time and 
72.10 	manner prescribed by the executive director of the applicable retirement system.

72.11 	Sec. 22. Minnesota Statutes 2016, section 49.24, subdivision 13, is amended to read:
72.12 		Subd. 13.Disposition of unclaimed dividends. Upon the liquidation of any financial 
72.13 	institution liquidated by the commissioner as statutory liquidator, if any dividends or other 
72.14 	moneys set apart for the payment of claims remain unpaid, and the places of residence of 
72.15 	the owners thereof are unknown to the commissioner, the commissioner may pay same into 
72.16 	the state treasury as hereinafter provided. Whenever the commissioner shall be satisfied 
72.17 	that the process of liquidation should not be further continued the commissioner may make 
72.18 	and certify triplicate lists of any such unclaimed dividends or other moneys, specifying the 
72.19 	name of each owner, the amount due, and the last known address. Upon one of such lists, 
72.20 	to be retained by the commissioner shall be endorsed the commissioner's order that such 
72.21 	unclaimed moneys be forthwith deposited in the state treasury. When so deposited, one of 
72.22 	said lists shall be delivered to the commissioner of management and budget and the 
72.23 	commissioner shall retain in the commissioner's office such records and proofs concerning 
72.24 	said claims as the commissioner may have, which shall thereafter remain on file in the 
72.25 	office. The commissioner of management and budget shall execute upon the list retained 
72.26 	by the commissioner a receipt for such money, which shall operate as a full discharge of 
72.27 	the commissioner on account of such claims. At any time within six years after such receipt, 
72.28 	but not afterward, the claimant may apply to the commissioner for the amount so deposited 
72.29 	for the claimant's benefit, and upon proof satisfactory to the governor, the attorney general 
72.30 	and the commissioner, or to a majority of them, they shall give an order to the commissioner 
72.31 	of management and budget to issue a warrant payment for such amount, and such warrant
72.32 	payment shall thereupon be issued. If no such claim be presented within six years, the 
72.33 	commissioner shall so note upon the commissioner's copy of said list and certify the fact 
72.34 	to the commissioner of management and budget who shall make like entries upon the 
72.35 	commissioner of management and budget's corresponding lists; and all further claims to 
73.1 	said money shall be barred. Provided, that the commissioner of management and budget 
73.2 	shall transfer to the commissioner of commerce's liquidation fund created by this section 
73.3 	not to exceed 50 percent of the amount so turned over by the commissioner, to be used to 
73.4 	partially defray expenses in connection with the liquidation of closed banks and the conduct 
73.5 	of the liquidation division, in such amounts and at such times as the commissioner shall 
73.6 	request.
73.7 	There is hereby appropriated to the persons entitled to such amounts, from such moneys 
73.8 	in the state treasury not otherwise appropriated, an amount sufficient to make such payment.

73.9 	Sec. 23. Minnesota Statutes 2016, section 49.24, subdivision 16, is amended to read:
73.10 		Subd. 16.Transfers to liquidation fund. The following moneys shall be transferred to 
73.11 	and deposited in the commissioner of commerce's liquidation fund:
73.12 	(1) All moneys paid to the commissioner of management and budget by the commissioner 
73.13 	out of funds of any financial institution in the commissioner's hands as reimbursement for 
73.14 	services and expenses pursuant to the provisions of subdivision 7.
73.15 	(2) All moneys in the possession of the commissioner set aside for the purpose of meeting 
73.16 	unforeseen and contingent expenses incident to the liquidation of closed financial institutions, 
73.17 	which funds have been or shall be hereafter established by withholding portions of final 
73.18 	liquidating dividends in such cases.
73.19 	(3) All moneys which the commissioner shall request the commissioner of management 
73.20 	and budget to transfer to such fund pursuant to the provisions of subdivision 13.
73.21 	(4) All moneys in the possession of the commissioner now carried on the commissioner's 
73.22 	books in "stamp account," "suspense account," and "unclaimed deposit account."
73.23 	(5) All moneys in the possession of the commissioner which the commissioner may be 
73.24 	authorized by order of any district court having jurisdiction of any liquidation proceedings 
73.25 	to transfer to such fund, or to use for any of the purposes for which the fund is established.
73.26 	(6) All moneys in the possession of the commissioner carried on the commissioner's 
73.27 	books in the "unclaimed bonds account." At any time within six years after any bond the 
73.28 	proceeds of the sale of which constitute a portion of the moneys in this paragraph referred 
73.29 	to came into the possession of the commissioner as liquidator of any financial institution, 
73.30 	any claimant thereto may apply to the commissioner for the proceeds of the sale of such 
73.31 	bond, and, upon proof satisfactory to the governor, the attorney general, and the 
73.32 	commissioner, or a majority of them, they shall give an order to the commissioner of 
73.33 	management and budget to issue a warrant payment for such amount, without interest, and 
74.1 	such warrant payment shall thereupon be issued and the amount thereof paid out of the 
74.2 	commissioner of commerce's liquidation fund. If no such claim be presented within such 
74.3 	period, all further claims to the proceeds of any such bond shall be barred.
74.4 	(7) All sums which the commissioner may receive from the sale of personal property of 
74.5 	liquidated financial institutions where the final dividend has been paid and no disposition 
74.6 	of said property made by any order of the court, and the proceeds of sales of any personal 
74.7 	property used by the liquidation division which have been purchased with funds of financial 
74.8 	institutions in liquidation.

74.9 	Sec. 24. Minnesota Statutes 2016, section 69.031, subdivision 1, is amended to read:
74.10 		Subdivision 1.Commissioner's warrant payment. (a) The commissioner of management 
74.11 	and budget shall issue to the Public Employees Retirement Association on behalf of a 
74.12 	municipality or independent nonprofit firefighting corporation that is a member of the 
74.13 	voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, to 
74.14 	the Department of Natural Resources, the Department of Public Safety, or the county, 
74.15 	municipality, or independent nonprofit firefighting corporation certified to the commissioner 
74.16 	of management and budget by the commissioner a warrant payment for an amount equal 
74.17 	to the amount of fire state aid or police state aid, whichever applies, certified for the 
74.18 	applicable state aid recipient by the commissioner under section 69.021.
74.19 	(b) Fire state aid and police state aid is payable on October 1 annually. The amount of 
74.20 	state aid due and not paid by October 1 accrues interest payable to the state aid recipient at 
74.21 	the rate of one percent for each month or part of a month that the amount remains unpaid 
74.22 	after October 1.

74.23 	Sec. 25. Minnesota Statutes 2016, section 80A.65, subdivision 9, is amended to read:
74.24 		Subd. 9.Generally. No filing for which a fee is required shall be deemed to be filed or 
74.25 	given any effect until the proper fee is paid. All fees and charges collected by the 
74.26 	administrator shall be covered into the state treasury. When any person is entitled to a refund 
74.27 	under this section, the administrator shall certify to the commissioner of management and 
74.28 	budget the amount of the fee to be refunded to the applicant, and the commissioner of 
74.29 	management and budget shall issue a warrant in payment thereof out of the fund to which 
74.30 	such fee was credited in the manner provided by law. There is hereby appropriated to the 
74.31 	person entitled to such refunds from the fund in the state treasury to which such fees were 
74.32 	credited an amount to make such refunds and payments.

75.1 	Sec. 26. Minnesota Statutes 2016, section 84A.23, subdivision 4, is amended to read:
75.2 		Subd. 4.Drainage ditch bonds; reports. (a) Immediately after a project is approved 
75.3 	and accepted and then after each distribution of the tax collections on the June and November 
75.4 	tax settlements, the county auditor shall certify to the commissioner of management and 
75.5 	budget the following information relating to bonds issued to finance or refinance public 
75.6 	drainage ditches wholly or partly within the projects, and the collection of assessments 
75.7 	levied on account of the ditches:
75.8 	(1) the amount of principal and interest to become due on the bonds before the next tax 
75.9 	settlement and distribution;
75.10 	(2) the amount of money collected from the drainage assessments and credited to the 
75.11 	funds of the ditches; and
75.12 	(3) the amount of the deficit in the ditch fund of the county chargeable to the ditches.
75.13 	(b) On approving the certificate, the commissioner of management and budget shall 
75.14 	draw a warrant issue a payment, payable out of the fund pertaining to the project, for the 
75.15 	amount of the deficit in favor of the county.
75.16 	(c) As to public drainage ditches wholly within a project, the amount of money paid to 
75.17 	or for the benefit of the county under paragraph (b) must never exceed the principal and 
75.18 	interest of the bonds issued to finance or refinance the ditches outstanding at the time of 
75.19 	the passage and approval of sections 84A.20 to 84A.30, less money on hand in the county 
75.20 	ditch fund to the credit of the ditches. The liabilities must be reduced from time to time by 
75.21 	the amount of all payments of assessments after April 25, 1931, made by the owners of 
75.22 	lands assessed before that date for benefits on account of the ditches.
75.23 	(d) As to public drainage ditches partly within and partly outside a project, the amount 
75.24 	paid from the fund pertaining to the project to or for the benefit of the county must never 
75.25 	exceed a certain percentage of bonds issued to finance and refinance the ditches so 
75.26 	outstanding, less money on hand in the county ditch fund to the credit of the ditches on 
75.27 	April 25, 1931. The percentage must bear the same proportion to the whole amount of these 
75.28 	bonds as the original benefits assessed against lands within the project bear to the original 
75.29 	total benefits assessed to the entire system of the ditches. This liability shall be reduced 
75.30 	from time to time by the payments of all assessments extended after April 25, 1931, made 
75.31 	by the owners of lands within the project of assessments for benefits assessed before that 
75.32 	date on account of a ditch.
76.1 	(e) The commissioner of management and budget may provide and prescribe forms for 
76.2 	reports required by sections 84A.20 to 84A.30 and require any additional information from 
76.3 	county officials that the commissioner of management and budget considers necessary for 
76.4 	the proper administration of sections 84A.20 to 84A.30.

76.5 	Sec. 27. Minnesota Statutes 2016, section 84A.33, subdivision 4, is amended to read:
76.6 		Subd. 4.Ditch bonds; funds; payments to counties. (a) Upon the approval and 
76.7 	acceptance of a project and after each distribution of the tax collections for the June and 
76.8 	November tax settlements, the county auditor shall certify to the commissioner of 
76.9 	management and budget the following information about bonds issued to finance or refinance 
76.10 	public drainage ditches wholly or partly within the projects, and the collection of assessments 
76.11 	levied for the ditches:
76.12 	(1) the amount of principal and interest to become due on the bonds before the next tax 
76.13 	settlement and distribution;
76.14 	(2) the amount of money collected from the drainage assessments and credited to the 
76.15 	funds of the ditches, not already sent to the commissioner of management and budget as 
76.16 	provided in sections 84A.31 to 84A.42; and
76.17 	(3) the amount of the deficit in the ditch fund of the county chargeable to the ditches.
76.18 	(b) On approving this certificate of the county auditor, the commissioner of management 
76.19 	and budget shall draw a warrant issue a payment, payable out of the fund provided for in 
76.20 	sections 84A.31 to 84A.42, and send it to the county treasurer of the county. These funds 
76.21 	must be credited to the proper ditch of the county and placed in the ditch bond fund of the 
76.22 	county, which is created, and used only to pay the ditch bonded indebtedness of the county 
76.23 	assumed by the state under sections 84A.31 to 84A.42. The total amount of warrants drawn
76.24 	payments issued must not exceed in any one year the total amount of the deficit provided 
76.25 	for under this section.
76.26 	(c) The state is subrogated to all title, right, interest, or lien of the county in or on the 
76.27 	lands so certified within these projects.
76.28 	(d) As to public drainage ditches wholly within a project, the amount paid to, or for the 
76.29 	benefit of, the county under this subdivision must never exceed the principal and interest 
76.30 	of the bonds issued to finance or refinance a ditch outstanding on April 22, 1933, less money 
76.31 	on hand in the county ditch fund to the credit of a ditch. These liabilities must be reduced 
76.32 	from time to time by the amount of any payments of assessments extended after April 22, 
77.1 	1933, made by the owners of lands assessed before that date for benefits on account of the 
77.2 	ditches.
77.3 	As to public drainage ditches partly within and partly outside a project the amount paid 
77.4 	from the fund pertaining to the project to or for the benefit of the county must never exceed 
77.5 	a certain percentage of bonds issued to finance and refinance a ditch so outstanding, less 
77.6 	money on hand in the county ditch fund to the credit of a ditch on April 22, 1932. The 
77.7 	percentage must bear the same proportion to the whole amount of the bonds as the original 
77.8 	benefits assessed against these lands within the project bear to the original total benefits 
77.9 	assessed to the entire system for a ditch. This liability must be reduced from time to time 
77.10 	by the payments of all assessments extended after April 22, 1933, made by the owners of 
77.11 	lands within the project of assessments for benefits assessed before that date on account of 
77.12 	a ditch.

77.13 	Sec. 28. Minnesota Statutes 2016, section 84A.40, is amended to read:
77.14 	84A.40 COUNTY MAY ASSUME BONDS.
77.15 	Any county where a project or portion of it is located may voluntarily assume, in the 
77.16 	manner specified in this section, the obligation to pay a portion of the principal and interest 
77.17 	of the bonds issued before the approval and acceptance of the project and remaining unpaid 
77.18 	at maturity, of any school district or town in the county and wholly or partly within the 
77.19 	project. The portion must bear the same proportion to the whole of the unpaid principal and 
77.20 	interest as the last net tax capacity, before the acceptance of the project, of lands then 
77.21 	acquired by the state under sections 84A.31 to 84A.42 in the school districts or towns bears 
77.22 	to the total net tax capacity for the same year of the school district or town. This assumption 
77.23 	must be evidenced by a resolution of the county board of the county. A copy of the resolution 
77.24 	must be certified to the commissioner of management and budget within one year after the 
77.25 	acceptance of the project.
77.26 	Later, if any of the bonds remains unpaid at maturity, the county board shall, upon 
77.27 	demand of the governing body of the school district or town or of a bondholder, provide 
77.28 	for the payment of the portion assumed. The county shall levy general taxes on all the taxable 
77.29 	property of the county for that purpose, or issue its bonds to raise the sum needed, conforming 
77.30 	to law respecting the issuance of county refunding bonds. The proceeds of taxes or bonds 
77.31 	must be paid by the county treasurer to the treasurer of the school district or town. No 
77.32 	payments shall be made by the county to the school district or town until the money in the 
77.33 	treasury of the school district or town, together with the money to be paid by the county, is 
77.34 	sufficient to pay in full each of the bonds as it becomes due.
78.1 	If a county fails to adopt and certify the resolution, the commissioner of management 
78.2 	and budget shall withhold from the payments to be made to the county under section 84A.32
78.3 	a sum equal to that portion of the principal and interest of the outstanding bonds that bears 
78.4 	the same proportion to the whole of the bonds as the above determined net tax capacity of 
78.5 	lands acquired by the state within the project bears to the total net tax capacity for the same 
78.6 	year of the school district or town. Money withheld from the county must be set aside in 
78.7 	the state treasury and not paid to the county until the full principal and interest of the school 
78.8 	district and town bonds have been paid.
78.9 	If any bonds remain unpaid at maturity, upon the demand of the governing body of the 
78.10 	school district or town, or a bondholder, the commissioner of management and budget shall 
78.11 	issue to the treasurer of the school district or town a warrant payment for that portion of the 
78.12 	past due principal and interest computed as in the case of the county's liability authorized 
78.13 	in this section to be voluntarily assumed. Money received by a school district or town under 
78.14 	this section must be applied to the payment of past-due bonds and interest.

78.15 	Sec. 29. Minnesota Statutes 2016, section 84A.52, is amended to read:
78.16 	84A.52 ACCOUNTS; EXAMINATION, APPROPRIATION, PAYMENT.
78.17 	As a part of the examination provided for by section 6.481, of the accounts of the several 
78.18 	counties within a game preserve, area, or project established under section 84A.01, 84A.20, 
78.19 	or 84A.31, the state auditor shall segregate the audit of the accounts reflecting the receipt 
78.20 	and disbursement of money collected or disbursed under this chapter or from the sale of 
78.21 	tax-forfeited lands held by the state under section 84A.07, 84A.26, or 84A.36. The auditor 
78.22 	shall also include in the reports required by section 6.481 summary statements as of 
78.23 	December 31 before the examination that set forth the proportionate amount of principal 
78.24 	and interest due from the state to the individual county and any money due the state from 
78.25 	the county remaining unpaid under this chapter, or from the sale of any tax-forfeited lands 
78.26 	referred to in this section, and other information required by the commissioner of management 
78.27 	and budget. On receiving a report, the commissioner of management and budget shall 
78.28 	determine the net amount due to the county for the period covered by the report and shall 
78.29 	draw a warrant issue a payment upon the state treasury payable out of the consolidated fund 
78.30 	for that amount. It must be paid to and received by the county as payment in full of all 
78.31 	amounts due for the period stated on the warrants payments from the state under any 
78.32 	provision of this chapter.
78.33 	Money to pay the warrants make the payments is appropriated to the counties entitled 
78.34 	to payment from the consolidated fund in the state treasury.

79.1 	Sec. 30. Minnesota Statutes 2016, section 88.12, subdivision 1, is amended to read:
79.2 		Subdivision 1.Limitation. The compensation and expenses of persons temporarily 
79.3 	employed in emergencies in suppression or control of wildfires shall be fixed by the 
79.4 	commissioner of natural resources or an authorized agent and paid as provided by law. Such 
79.5 	compensation shall not exceed the maximum rate for comparable labor established as 
79.6 	provided by law or rules, but shall not be subject to any minimum rate so established. The 
79.7 	commissioner is authorized to draw and expend from money appropriated for the purposes 
79.8 	of sections 88.03 to 88.22 a reasonable sum and through forest officers or other authorized 
79.9 	agent be used in paying emergency expenses, including just compensation for services 
79.10 	rendered by persons summoned and for private property used, damaged, or appropriated 
79.11 	under sections 88.03 to 88.22. The commissioner of management and budget is authorized 
79.12 	to draw a warrant issue a payment for this sum when duly approved by the commissioner. 
79.13 	The commissioner or agent in charge shall take proper subvouchers or receipts from all 
79.14 	persons to whom these moneys are paid, and after these subvouchers have been approved 
79.15 	they shall be filed with the commissioner of management and budget. Authorized funds as 
79.16 	herein provided at any time shall be deposited, subject to withdrawal or disbursement by 
79.17 	check or otherwise for the purposes herein prescribed, in a bank authorized and bonded to 
79.18 	receive state deposits; and the bond of this bank to the state shall cover and include this 
79.19 	deposit.

79.20 	Sec. 31. Minnesota Statutes 2016, section 94.522, is amended to read:
79.21 	94.522 TRANSMISSION OF WARRANTS PAYMENTS TO COUNTY 
79.22 	TREASURERS; USE OF PROCEEDS.
79.23 	It shall be the duty of the commissioner of management and budget to transmit warrants 
79.24 	on payments from the state treasury to the county treasurer of the respective counties for 
79.25 	the sums that may be due in accordance with section 94.521, which sums are hereby 
79.26 	appropriated out of the state treasury from the amounts received from the United States 
79.27 	government pursuant to the aforesaid acts of Congress, and such money shall be used by 
79.28 	the counties receiving the same for the purposes and in the proportions herein provided.

79.29 	Sec. 32. Minnesota Statutes 2016, section 94.53, is amended to read:
79.30 	94.53 WARRANT PAYMENT TO COUNTY TREASURERS; FEDERAL LOANS 
79.31 	TO COUNTIES.
79.32 	It shall be the duty of the commissioner of management and budget to transmit warrants 
79.33 	on payments from the state treasury to the county treasurers of the respective counties for 
80.1 	the sum that may be due in accordance with sections 94.52 to 94.54, which sum or sums 
80.2 	are hereby appropriated out of the state treasury from the amounts received from the United 
80.3 	States government pursuant to the aforesaid act of Congress. The commissioner of 
80.4 	management and budget, upon being notified by the federal government or any agencies 
80.5 	thereof that a loan has been made to any such county the repayment of which is to be made 
80.6 	from such fund, is authorized to transmit a warrant or warrantspayment to the federal 
80.7 	government or any agency thereof sufficient to repay such loan out of any money apportioned 
80.8 	or due to such county under the provisions of such act of Congress, approved May 23, 1908 
80.9 	(Statutes at Large, volume 35, page 260).

80.10 	Sec. 33. Minnesota Statutes 2016, section 116J.64, subdivision 7, is amended to read:
80.11 		Subd. 7.Processing. (a) An Indian desiring a loan for the purpose of starting a business 
80.12 	enterprise or expanding an existing business shall make application to the appropriate tribal 
80.13 	government. The application shall be forwarded to the appropriate eligible organization, if 
80.14 	it is participating in the program, for consideration in conformity with the plans submitted 
80.15 	by said tribal governments. The tribal government may approve the application if it 
80.16 	determines that the loan would advance the goals of the Indian business loan program. If 
80.17 	the tribal government is not participating in the program, the agency may directly approve 
80.18 	or deny the loan application.
80.19 	(b) If the application is approved, the tribal government shall forward the application, 
80.20 	together with all relevant documents pertinent thereto, to the commissioner of the agency, 
80.21 	who shall cause a warrant request a payment to be drawn in favor of issued to the applicant 
80.22 	or the applicable tribal government, or the agency, if it is administering the loan, with 
80.23 	appropriate notations identifying the borrower.
80.24 	(c) The tribal government, eligible organization, or the agency, if it is administering the 
80.25 	loan, shall maintain records of transactions for each borrower in a manner consistent with 
80.26 	good accounting practice. The interest rate on a loan shall be established by the tribal 
80.27 	government or the agency, but may be no less than two percent per annum nor more than 
80.28 	ten percent per annum. When any portion of a debt is repaid, the tribal government, eligible 
80.29 	organization, or the agency, if it is administering the loan, shall remit the amount so received 
80.30 	plus interest paid thereon to the commissioner of management and budget through the 
80.31 	agency. The amount so received shall be credited to the Indian business loan account.
80.32 	(d) On the placing of a loan, additional money equal to ten percent of the total amount 
80.33 	made available to any tribal government, eligible organization, or the agency, if it is 
80.34 	administering the loan, for loans during the fiscal year shall be paid to the tribal government, 
81.1 	eligible organization, or the agency, prior to December 31 for the purpose of financing 
81.2 	administrative costs.

81.3 	Sec. 34. Minnesota Statutes 2016, section 126C.55, subdivision 2, is amended to read:
81.4 		Subd. 2.Notifications; payment; appropriation. (a) If a school district or intermediate 
81.5 	school district believes that it may be unable to make a principal or interest payment on any 
81.6 	outstanding debt obligation on the date that payment is due, it must notify the commissioner 
81.7 	as soon as possible, but not less than 15 working days before the date that principal or 
81.8 	interest payment is due. The notice must include the name of the school district or 
81.9 	intermediate school district, an identification of the debt obligation issue in question, the 
81.10 	date the payment is due, the amount of principal and interest due on the payment date, the 
81.11 	amount of principal or interest that the school district or intermediate school district will be 
81.12 	unable to repay on that date, the paying agent for the debt obligation, the wire transfer 
81.13 	instructions to transfer funds to that paying agent, and an indication as to whether a payment 
81.14 	is being requested by the school district or intermediate school district under this section. 
81.15 	If a paying agent becomes aware of a potential default, it shall inform the commissioner of 
81.16 	that fact. After receipt of a notice which requests a payment under this section, after 
81.17 	consultation with the school district or intermediate school district and the paying agent, 
81.18 	and after verification of the accuracy of the information provided, the commissioner shall 
81.19 	notify the commissioner of management and budget of the potential default. The notice 
81.20 	must include a final figure as to the amount due that the school district or intermediate 
81.21 	school district will be unable to repay on the date due.
81.22 	(b) Except as provided in subdivision 9, upon receipt of this notice from the 
81.23 	commissioner, the commissioner of management and budget shall issue a warrant payment
81.24 	and authorize the commissioner of education to pay to the paying agent for the debt obligation 
81.25 	the specified amount on or before the date due. The amounts needed for the purposes of 
81.26 	this subdivision are annually appropriated to the department from the state general fund.
81.27 	(c) The Departments of Education and Management and Budget must jointly develop 
81.28 	detailed procedures for school districts and intermediate school districts to notify the state 
81.29 	that they have obligated themselves to be bound by the provisions of this section, procedures 
81.30 	for school districts or intermediate school districts and paying agents to notify the state of 
81.31 	potential defaults and to request state payment under this section, and procedures for the 
81.32 	state to expedite payments to prevent defaults. The procedures are not subject to chapter 
81.33 	14.

82.1 	Sec. 35. Minnesota Statutes 2016, section 126C.55, subdivision 9, is amended to read:
82.2 		Subd. 9.State bond rating. If the commissioner of management and budget determines 
82.3 	that the credit rating of the state would be adversely affected thereby, the commissioner of 
82.4 	management and budget shall not issue warrants payments under subdivision 2 for the 
82.5 	payment of principal or interest on any debt obligations for which a district did not, prior 
82.6 	to their issuance, obligate itself to be bound by the provisions of this section.

82.7 	Sec. 36. Minnesota Statutes 2016, section 126C.68, subdivision 3, is amended to read:
82.8 		Subd. 3.Warrant Payment. The commissioner shall issue to each district whose note 
82.9 	has been so received a warrant payment on the debt service loan account of the maximum 
82.10 	effort school loan fund, payable on presentation to the commissioner of management and 
82.11 	budget out of any money in such account. The warrant payment shall be issued by the 
82.12 	commissioner in sufficient time to coincide with the next date on which the district is 
82.13 	obligated to make principal or interest payments on its bonded debt in the ensuing year. 
82.14 	Interest must accrue from the date such warrant payment is issued. The proceeds thereof 
82.15 	must be used by the district to pay principal or interest on its bonded debt falling due in the 
82.16 	ensuing year.

82.17 	Sec. 37. Minnesota Statutes 2016, section 126C.69, subdivision 14, is amended to read:
82.18 		Subd. 14.Participation by county auditor; record of contract; payment of loan. The 
82.19 	district must file a copy of the capital loan contract with the county auditor of each county 
82.20 	in which any part of the district is situated. The county auditor shall enter the capital loan, 
82.21 	evidenced by the contract, in the auditor's bond register. The commissioner shall keep a 
82.22 	record of each capital loan and contract showing the name and address of the district, the 
82.23 	date of the contract, and the amount of the loan initially approved. On receipt of the resolution 
82.24 	required in subdivision 12, the commissioner shall issue warrants payments, which may be 
82.25 	dispersed in accordance with the schedule in the contract, on the capital loan account for 
82.26 	the amount that may be disbursed under subdivision 1. Interest on each disbursement of the 
82.27 	capital loan amount accrues from the date on which the commissioner of management and 
82.28 	budget issues the warrant payment.

82.29 	Sec. 38. Minnesota Statutes 2016, section 127A.34, subdivision 1, is amended to read:
82.30 		Subdivision 1.Copy to commissioner of management and budget; appropriation.
 82.31 	The commissioner shall furnish a copy of the apportionment of the school endowment fund 
82.32 	to the commissioner of management and budget, who thereupon shall draw warrants on
83.1 	issue payments from the state treasury, payable to the several districts, for the amount due 
83.2 	each district. There is hereby annually appropriated from the school endowment fund the 
83.3 	amount of such apportionments.

83.4 	Sec. 39. Minnesota Statutes 2016, section 127A.40, is amended to read:
83.5 	127A.40 MANNER OF PAYMENT OF STATE AIDS.
83.6 	It shall be the duty of the commissioner to deliver to the commissioner of management 
83.7 	and budget a certificate for each district entitled to receive state aid under the provisions of 
83.8 	this chapter. Upon the receipt of such certificate, it shall be the duty of the commissioner 
83.9 	of management and budget to draw a warrant in favor of issue a payment to the district for 
83.10 	the amount shown by each certificate to be due to the district. The commissioner of 
83.11 	management and budget shall transmit such warrants payments to the district together with 
83.12 	a copy of the certificate prepared by the commissioner.

83.13 	Sec. 40. Minnesota Statutes 2016, section 136F.46, subdivision 1, is amended to read:
83.14 		Subdivision 1.Request; warrant payment. The commissioner of management and 
83.15 	budget, upon the written request of an employee of the board, may deduct from an employee's 
83.16 	salary or wages the amount requested for payment to a nonprofit state college or university 
83.17 	foundation meeting the requirements in subdivision 2. The commissioner shall issue a 
83.18 	warrant payment for the deducted amount to the nonprofit foundation. The Penny Fellowship 
83.19 	and the Nellie Stone Johnson Scholarship Program of the Minnesota State University Student 
83.20 	Association shall be considered nonprofit state college and university foundations for 
83.21 	purposes of this section.

83.22 	Sec. 41. Minnesota Statutes 2016, section 136F.70, subdivision 3, is amended to read:
83.23 		Subd. 3.Refunds. The board may make refunds to students for tuition, activity fees, 
83.24 	union fees, and any other fees from imprest cash funds. The imprest cash fund shall be 
83.25 	reimbursed periodically by checks or warrants drawn on payments issued from the funds 
83.26 	and accounts to which the refund should ultimately be charged. The amounts necessary to 
83.27 	pay the refunds are appropriated from the funds and accounts to which they are charged.

83.28 	Sec. 42. Minnesota Statutes 2016, section 162.08, subdivision 10, is amended to read:
83.29 		Subd. 10.Project approval, reports. When the county board of any county determines 
83.30 	to do any construction work on a county state-aid highway or other road eligible for the 
83.31 	expenditure of state aid funds within the county, and desires to expend on such work a 
84.1 	portion of the money apportioned or allocated to it out of the county state-aid highway fund, 
84.2 	the county shall first obtain approval of the project by the commissioner. Thereafter the 
84.3 	county engineer shall make such reports in such manner as the commissioner requires under 
84.4 	rules of the commissioner. Upon receipt of satisfactory reports, the commissioner shall 
84.5 	certify to the commissioner of management and budget the amount of money that is eligible 
84.6 	to be paid from the county's apportionment or allocation for the work under contract or 
84.7 	actually completed. The commissioner of management and budget shall thereupon issue a 
84.8 	warrant payment in that amount payable to the county treasurer. In no event shall the warrant
84.9 	payment with all other warrants payments issued exceed the amount apportioned and 
84.10 	allocated to the county.

84.11 	Sec. 43. Minnesota Statutes 2016, section 162.08, subdivision 11, is amended to read:
84.12 		Subd. 11.Certification required to issue warrants payment. The commissioner of 
84.13 	management and budget shall not issue any warrants payments without the certification of 
84.14 	the commissioner.

84.15 	Sec. 44. Minnesota Statutes 2016, section 162.14, subdivision 4, is amended to read:
84.16 		Subd. 4.Project approval and reports. When the governing body of any such city 
84.17 	determines to do any construction work on any municipal state-aid street or other streets 
84.18 	within the city upon which money apportioned out of the municipal state-aid street fund 
84.19 	may be used as provided in subdivision 2, the governing body shall first obtain the approval 
84.20 	of the commissioner. Thereafter, the engineer of the city shall make reports in such manner 
84.21 	as the commissioner requires in accordance with the commissioner's rules. Upon receipt of 
84.22 	satisfactory reports the commissioner shall certify to the commissioner of management and 
84.23 	budget the amount of money that is eligible to be paid from the city's apportionment for the 
84.24 	work under contract or actually completed. The commissioner of management and budget 
84.25 	shall thereupon issue a warrant payment in that amount payable to the fiscal officers of the 
84.26 	city. In no event shall the warrant payment with all other warrants payments issued exceed 
84.27 	the amount apportioned to the city.

84.28 	Sec. 45. Minnesota Statutes 2016, section 162.14, subdivision 5, is amended to read:
84.29 		Subd. 5.Certification required to issue warrant payment. The commissioner of 
84.30 	management and budget shall not issue any warrants payments as provided for in subdivision 
84.31 	4 without the prior certification of the commissioner.

85.1 	Sec. 46. Minnesota Statutes 2016, section 162.18, subdivision 4, is amended to read:
85.2 		Subd. 4.Certification to commissioner of money required. Any municipality issuing 
85.3 	and selling bonds pursuant to this section shall certify to the commissioner the amount of 
85.4 	money required annually for the payment of principal and interest on the obligation. Upon 
85.5 	receipt thereof, the commissioner shall certify to the commissioner of management and 
85.6 	budget the sum of money needed annually by the municipality for the principal and interest, 
85.7 	provided that the amount certified by the commissioner shall not exceed the limit heretofore 
85.8 	specified. The commissioner of management and budget shall thereafter, until said bonds 
85.9 	are retired, issue a warrant payment annually in the amount certified payable to the fiscal 
85.10 	officer of the municipality, and the amount thereof shall be deposited by the fiscal officer 
85.11 	in the sinking fund from which the obligations are payable.

85.12 	Sec. 47. Minnesota Statutes 2016, section 162.181, subdivision 4, is amended to read:
85.13 		Subd. 4.Certification to commissioner of money required. Any county issuing and 
85.14 	selling bonds pursuant to this section shall certify to the commissioner the amount of money 
85.15 	required annually for the payment of principal and interest on the obligation. Upon receipt 
85.16 	thereof, the commissioner shall certify to the commissioner of management and budget the 
85.17 	sum of money needed annually by the county for the principal and interest, provided that 
85.18 	the amount certified by the commissioner shall not exceed the limit heretofore specified. 
85.19 	The commissioner of management and budget shall thereafter, until said bonds are retired, 
85.20 	issue a warrant payment annually in the amount certified payable to the county treasurer of 
85.21 	the county, and the amount thereof shall be deposited by the county treasurer in the sinking 
85.22 	fund from which the obligations are payable.

85.23 	Sec. 48. Minnesota Statutes 2016, section 163.051, subdivision 3, is amended to read:
85.24 		Subd. 3.Distribution to county; appropriation. On a monthly basis, the registrar of 
85.25 	motor vehicles shall issue a warrant payment in favor of the treasurer of each county for 
85.26 	which the registrar has collected a wheelage tax in the amount of such tax then on hand in 
85.27 	the county wheelage tax account. There is hereby appropriated from the county wheelage 
85.28 	tax account each year, to each county entitled to payments authorized by this section, 
85.29 	sufficient moneys to make such payments.

85.30 	Sec. 49. Minnesota Statutes 2016, section 176.181, subdivision 2, is amended to read:
85.31 		Subd. 2.Compulsory insurance; self-insurers. (a) Every employer, except the state 
85.32 	and its municipal subdivisions, liable under this chapter to pay compensation shall insure 
86.1 	payment of compensation with some insurance carrier authorized to insure workers' 
86.2 	compensation liability in this state, or obtain a written order from the commissioner of 
86.3 	commerce exempting the employer from insuring liability for compensation and permitting 
86.4 	self-insurance of the liability. The terms, conditions and requirements governing 
86.5 	self-insurance shall be established by the commissioner pursuant to chapter 14. The 
86.6 	commissioner of commerce shall also adopt, pursuant to paragraph (d), rules permitting 
86.7 	two or more employers, whether or not they are in the same industry, to enter into agreements 
86.8 	to pool their liabilities under this chapter for the purpose of qualifying as group self-insurers. 
86.9 	With the approval of the commissioner of commerce, any employer may exclude medical, 
86.10 	chiropractic and hospital benefits as required by this chapter. An employer conducting 
86.11 	distinct operations at different locations may either insure or self-insure the other portion 
86.12 	of operations as a distinct and separate risk. An employer desiring to be exempted from 
86.13 	insuring liability for compensation shall make application to the commissioner of commerce, 
86.14 	showing financial ability to pay the compensation, whereupon by written order the 
86.15 	commissioner of commerce, on deeming it proper, may make an exemption. An employer 
86.16 	may establish financial ability to pay compensation by providing financial statements of 
86.17 	the employer to the commissioner of commerce. Upon ten days' written notice the 
86.18 	commissioner of commerce may revoke the order granting an exemption, in which event 
86.19 	the employer shall immediately insure the liability. As a condition for the granting of an 
86.20 	exemption the commissioner of commerce may require the employer to furnish security the 
86.21 	commissioner of commerce considers sufficient to insure payment of all claims under this 
86.22 	chapter, consistent with subdivision 2b. If the required security is in the form of currency 
86.23 	or negotiable bonds, the commissioner of commerce shall deposit it with the commissioner 
86.24 	of management and budget. In the event of any default upon the part of a self-insurer to 
86.25 	abide by any final order or decision of the commissioner of labor and industry directing and 
86.26 	awarding payment of compensation and benefits to any employee or the dependents of any 
86.27 	deceased employee, then upon at least ten days' notice to the self-insurer, the commissioner 
86.28 	of commerce may by written order to the commissioner of management and budget require 
86.29 	the commissioner of management and budget to sell the pledged and assigned securities or 
86.30 	a part thereof necessary to pay the full amount of any such claim or award with interest 
86.31 	thereon. This authority to sell may be exercised from time to time to satisfy any order or 
86.32 	award of the commissioner of labor and industry or any judgment obtained thereon. When 
86.33 	securities are sold the money obtained shall be deposited in the state treasury to the credit 
86.34 	of the commissioner of commerce and awards made against any such self-insurer by the 
86.35 	commissioner of commerce shall be paid to the persons entitled thereto by the commissioner 
86.36 	of management and budget upon warrants prepared payments requested by the commissioner 
87.1 	of commerce out of the proceeds of the sale of securities. Where the security is in the form 
87.2 	of a surety bond or personal guaranty the commissioner of commerce, at any time, upon at 
87.3 	least ten days' notice and opportunity to be heard, may require the surety to pay the amount 
87.4 	of the award, the payments to be enforced in like manner as the award may be enforced.
87.5 	(b) No association, corporation, partnership, sole proprietorship, trust or other business 
87.6 	entity shall provide services in the design, establishment or administration of a group 
87.7 	self-insurance plan under rules adopted pursuant to this subdivision unless it is licensed, or 
87.8 	exempt from licensure, pursuant to section 60A.23, subdivision 8, to do so by the 
87.9 	commissioner of commerce. An applicant for a license shall state in writing the type of 
87.10 	activities it seeks authorization to engage in and the type of services it seeks authorization 
87.11 	to provide. The license shall be granted only when the commissioner of commerce is satisfied 
87.12 	that the entity possesses the necessary organization, background, expertise, and financial 
87.13 	integrity to supply the services sought to be offered. The commissioner of commerce may 
87.14 	issue a license subject to restrictions or limitations, including restrictions or limitations on 
87.15 	the type of services which may be supplied or the activities which may be engaged in. The 
87.16 	license is for a two-year period.
87.17 	(c) To assure that group self-insurance plans are financially solvent, administered in a 
87.18 	fair and capable fashion, and able to process claims and pay benefits in a prompt, fair and 
87.19 	equitable manner, entities licensed to engage in such business are subject to supervision 
87.20 	and examination by the commissioner of commerce.
87.21 	(d) To carry out the purposes of this subdivision, the commissioner of commerce may 
87.22 	promulgate administrative rules pursuant to sections 14.001 to 14.69. These rules may:
87.23 	(1) establish reporting requirements for administrators of group self-insurance plans;
87.24 	(2) establish standards and guidelines consistent with subdivision 2b to assure the 
87.25 	adequacy of the financing and administration of group self-insurance plans;
87.26 	(3) establish bonding requirements or other provisions assuring the financial integrity 
87.27 	of entities administering group self-insurance plans;
87.28 	(4) establish standards, including but not limited to minimum terms of membership in 
87.29 	self-insurance plans, as necessary to provide stability for those plans;
87.30 	(5) establish standards or guidelines governing the formation, operation, administration, 
87.31 	and dissolution of self-insurance plans; and
87.32 	(6) establish other reasonable requirements to further the purposes of this subdivision.

88.1 	Sec. 50. Minnesota Statutes 2016, section 176.581, is amended to read:
88.2 	176.581 PAYMENT TO STATE EMPLOYEES.
88.3 	Upon a warrant request prepared by the commissioner of administration, and in 
88.4 	accordance with the terms of the order awarding compensation, the commissioner of 
88.5 	management and budget shall pay compensation to the employee or the employee's 
88.6 	dependent. These payments shall be made from money appropriated for this purpose.

88.7 	Sec. 51. Minnesota Statutes 2016, section 176.591, subdivision 3, is amended to read:
88.8 		Subd. 3.Compensation payments upon warrants request. The commissioner of 
88.9 	management and budget shall make compensation payments from the fund only as authorized 
88.10 	by this chapter upon warrants request of the commissioner of administration.

88.11 	Sec. 52. Minnesota Statutes 2016, section 192.55, is amended to read:
88.12 	192.55 PAYMENTS TO BE MADE THROUGH ADJUTANT GENERAL.
88.13 	All pay and allowances and necessary expenses for any of the military forces shall, when 
88.14 	approved by the adjutant general, be paid by the commissioner of management and budget's 
88.15 	warrants issued budget to the several officers and enlisted members entitled thereto; provided, 
88.16 	that upon the request of the adjutant general, approved by the governor, the sum required 
88.17 	for any such pay or allowances and necessary expenses shall be paid by the commissioner 
88.18 	of management and budget's warrant budget to the adjutant general, who shall immediately 
88.19 	pay and distribute the same to the several officers or enlisted members entitled thereto or 
88.20 	to their commanding officers or to a finance officer designated by the adjutant general. The 
88.21 	receipt of any such commanding officer or finance officer for any such payment shall 
88.22 	discharge the adjutant general from liability therefor. Every commanding officer or finance 
88.23 	officer receiving any such payment shall, as soon as practicable, pay and distribute the same 
88.24 	to the several officers or enlisted members entitled thereto. The officer making final payment 
88.25 	shall, as evidence thereof, secure the signature of the person receiving the same upon a 
88.26 	payroll or other proper voucher.

88.27 	Sec. 53. Minnesota Statutes 2016, section 196.052, is amended to read:
88.28 	196.052 GIFT ACCEPTANCE AND INVESTMENT.
88.29 	On the behalf of the state, the commissioner may accept any gift, grant, bequest, or 
88.30 	devise made for the purposes of this chapter and chapter 197. The commissioner must 
88.31 	administer the funds as directed by the donor. All funds must be deposited in the state 
89.1 	treasury and credited to the veterans affairs endowment, bequest, and devises fund. The 
89.2 	balance of the fund is annually appropriated to the commissioner of veterans affairs to 
89.3 	accomplish the purposes of this chapter and chapter 197. Funds received by the commissioner 
89.4 	under this section in excess of current needs must be invested by the State Board of 
89.5 	Investment in accordance with section 11A.24. Disbursements from this fund must be in 
89.6 	the manner provided for the issuance of other state warrants payments. The commissioner 
89.7 	may refuse to accept any gift, grant, bequest, or devise if acceptance would not be in the 
89.8 	best interest of the state or Minnesota's veterans.

89.9 	Sec. 54. Minnesota Statutes 2016, section 198.16, is amended to read:
89.10 	198.16 PLANNED GIVING.
89.11 	The commissioner is authorized to accept on behalf of the state any gift, grant, bequest, 
89.12 	or devise made for the purposes of this chapter, and administer the same as directed by the 
89.13 	donor. All proceeds therefrom including money derived from the sale of any real or personal 
89.14 	property must be deposited in the state treasury, invested by the State Board of Investment 
89.15 	in accordance with sections 11A.24 and 11A.25, and credited to the Minnesota veterans 
89.16 	home endowment, bequest, and devises fund. That fund consists of separate accounts for 
89.17 	investing general and restricted gifts, money, and donations received and for any currently 
89.18 	expendable proceeds.
89.19 	The commissioner shall maintain records of all gifts received, clearly showing the identity 
89.20 	of the donor, the purpose of the donation, and the ultimate disposition of the donation. Each 
89.21 	donation must be duly receipted and must be expended or used by the commissioner as 
89.22 	nearly in accordance with the condition of the gift or donation as is compatible with the 
89.23 	best interests of the residents of the homes. Money in the fund is appropriated to the 
89.24 	commissioner for the purposes for which it was received. Disbursements from this fund 
89.25 	shall be made in the manner provided for the issuance of other state warrants payments.
89.26 	Whenever the commissioner shall deem it advisable, in accordance with law, to sell or 
89.27 	otherwise dispose of any real or personal property thus acquired, the commissioner of 
89.28 	administration upon the request of the commissioner shall sell or otherwise dispose of said 
89.29 	property in the manner provided by law for the sale or disposition of other state property 
89.30 	by the commissioner of administration.

89.31 	Sec. 55. Minnesota Statutes 2016, section 237.30, is amended to read:
89.32 	237.30 TELEPHONE INVESTIGATION FUND; APPROPRIATION.
90.1 	A Minnesota Telephone Investigation Fund shall exist for the use of the Department of 
90.2 	Commerce and of the attorney general in investigations, valuations, and revaluations under 
90.3 	section 237.295. All sums paid by the telephone companies to reimburse the department 
90.4 	for its expenses pursuant to section 237.295 shall be credited to the revolving fund and shall 
90.5 	be deposited in a separate bank account and not commingled with any other state funds or 
90.6 	moneys, but any balance in excess of $25,000 in the revolving fund at the end of each fiscal 
90.7 	year shall be paid into the state treasury and credited to the general fund. All subsequent 
90.8 	credits to said revolving fund shall be paid upon the warrant of by the commissioner of 
90.9 	management and budget upon application of the department or of the attorney general to 
90.10 	an aggregate amount of not more than one-half of such sums to each of them, which 
90.11 	proportion shall be constantly maintained in all credits and withdrawals from the revolving 
90.12 	fund.

90.13 	Sec. 56. Minnesota Statutes 2016, section 241.13, subdivision 1, is amended to read:
90.14 		Subdivision 1.Contingent account. The commissioner of corrections may permit a 
90.15 	contingent account to remain in the hands of the accounting officer of any such institution 
90.16 	from which expenditures may be made in case of actual emergency requiring immediate 
90.17 	payment to prevent loss or danger to the institution or its inmates and for the purpose of 
90.18 	paying freight, purchasing produce, livestock and other commodities requiring a cash 
90.19 	settlement, and for the purpose of discounting bills incurred, but in all cases subject to 
90.20 	revision by the commissioner of corrections. An itemized statement of every expenditure 
90.21 	made during the month from such account shall be submitted to the commissioner under 
90.22 	rules established by the commissioner. If necessary, the commissioner shall make proper 
90.23 	requisition upon the commissioner of management and budget for a warrant payment to 
90.24 	secure the contingent account for each institution.

90.25 	Sec. 57. Minnesota Statutes 2016, section 244.19, subdivision 7, is amended to read:
90.26 		Subd. 7.Certificate of counties entitled to state aid. On or before January 1 of each 
90.27 	year, until 1970 and on or before April 1 thereafter, the commissioner of corrections shall 
90.28 	deliver to the commissioner of management and budget a certificate in duplicate for each 
90.29 	county of the state entitled to receive state aid under the provisions of this section. Upon 
90.30 	the receipt of such certificate, the commissioner of management and budget shall draw a 
90.31 	warrant in favor of issue a payment to the county treasurer for the amount shown by each 
90.32 	certificate to be due to the county specified. The commissioner of management and budget 
90.33 	shall transmit such warrant payment to the county treasurer together with a copy of the 
90.34 	certificate prepared by the commissioner of corrections.

91.1 	Sec. 58. Minnesota Statutes 2016, section 256B.20, is amended to read:
91.2 	256B.20 COUNTY APPROPRIATIONS.
91.3 	The providing of funds necessary to carry out the provisions hereof on the part of the 
91.4 	counties and the manner of administering the funds of the counties and the state shall be as 
91.5 	follows:
91.6 	(1) The board of county commissioners of each county shall annually set up in its budget 
91.7 	an item designated as the county medical assistance fund and levy taxes and fix a rate 
91.8 	therefor sufficient to produce the full amount of such item, in addition to all other tax levies 
91.9 	and tax rate, however fixed or determined, sufficient to carry out the provisions hereof and 
91.10 	sufficient to pay in full the county share of assistance and administrative expense for the 
91.11 	ensuing year; and annually on or before October 10 shall certify the same to the county 
91.12 	auditor to be entered by the auditor on the tax rolls. Such tax levy and tax rate shall make 
91.13 	proper allowance and provision for shortage in tax collections.
91.14 	(2) Any county may transfer surplus funds from any county fund, except the sinking or 
91.15 	ditch fund, to the general fund or to the county medical assistance fund in order to provide 
91.16 	money necessary to pay medical assistance awarded hereunder. The money so transferred 
91.17 	shall be used for no other purpose, but any portion thereof no longer needed for such purpose 
91.18 	shall be transferred back to the fund from which taken.
91.19 	(3) Upon the order of the county agency the county auditor shall draw a warrant on the 
91.20 	proper fund in accordance with the order, and the county treasurer shall pay out the amounts 
91.21 	ordered to be paid out as medical assistance hereunder. When necessary by reason of failure 
91.22 	to levy sufficient taxes for the payment of the medical assistance in the county, the county 
91.23 	auditor shall carry any such payments as an overdraft on the medical assistance funds of 
91.24 	the county until sufficient tax funds shall be provided for such assistance payments. The 
91.25 	board of county commissioners shall include in the tax levy and tax rate in the year following 
91.26 	the year in which such overdraft occurred, an amount sufficient to liquidate such overdraft 
91.27 	in full.
91.28 	(4) Claims for reimbursement and reports shall be presented to the state agency by the 
91.29 	respective counties as required under section 256.01, subdivision 2, paragraph (p). The state 
91.30 	agency shall audit such claims and certify to the commissioner of management and budget 
91.31 	the amounts due the respective counties without delay. The amounts so certified shall be 
91.32 	paid within ten days after such certification, from the state treasury upon warrant payment
91.33 	of the commissioner of management and budget from any money available therefor. The 
91.34 	money available to the state agency to carry out the provisions hereof, including all federal 
92.1 	funds available to the state, shall be kept and deposited by the commissioner of management 
92.2 	and budget in the revenue fund and disbursed upon warrants in the same manner as other 
92.3 	state funds.

92.4 	Sec. 59. Minnesota Statutes 2016, section 260B.331, subdivision 2, is amended to read:
92.5 		Subd. 2.Cost of group foster care. Whenever a child is placed in a group foster care 
92.6 	facility as provided in section 260B.198, subdivision 1, clause (2) or (3), item (v), the cost 
92.7 	of providing the care shall, upon certification by the juvenile court, be paid from the welfare 
92.8 	fund of the county in which the proceedings were held. To reimburse the counties for the 
92.9 	costs of providing group foster care for delinquent children and to promote the establishment 
92.10 	of suitable group foster homes, the state shall quarterly, from funds appropriated for that 
92.11 	purpose, reimburse counties 50 percent of the costs not paid by federal and other available 
92.12 	state aids and grants. Reimbursement shall be prorated if the appropriation is insufficient.
92.13 	The commissioner of corrections shall establish procedures for reimbursement and certify 
92.14 	to the commissioner of management and budget each county entitled to receive state aid 
92.15 	under the provisions of this subdivision. Upon receipt of a certificate the commissioner of 
92.16 	management and budget shall issue a state warrant payment to the county treasurer for the 
92.17 	amount due, together with a copy of the certificate prepared by the commissioner of 
92.18 	corrections.

92.19 	Sec. 60. Minnesota Statutes 2016, section 260C.331, subdivision 2, is amended to read:
92.20 		Subd. 2.Cost of group foster care. Whenever a child is placed in a group foster care 
92.21 	facility as provided in section 260C.201, subdivision 1, paragraph (b), clause (2) or (3), the 
92.22 	cost of providing the care shall, upon certification by the juvenile court, be paid from the 
92.23 	welfare fund of the county in which the proceedings were held. To reimburse the counties 
92.24 	for the costs of promoting the establishment of suitable group foster homes, the state shall 
92.25 	quarterly, from funds appropriated for that purpose, reimburse counties 50 percent of the 
92.26 	costs not paid by federal and other available state aids and grants. Reimbursement shall be 
92.27 	prorated if the appropriation is insufficient.
92.28 	The commissioner of corrections shall establish procedures for reimbursement and certify 
92.29 	to the commissioner of management and budget each county entitled to receive state aid 
92.30 	under the provisions of this subdivision. Upon receipt of a certificate the commissioner of 
92.31 	management and budget shall issue a state warrant payment to the county treasurer for the 
92.32 	amount due, together with a copy of the certificate prepared by the commissioner of 
92.33 	corrections.

93.1 	Sec. 61. Minnesota Statutes 2016, section 273.121, subdivision 1, is amended to read:
93.2 		Subdivision 1.Notice. Any county assessor or city assessor having the powers of a 
93.3 	county assessor, valuing or classifying taxable real property shall in each year notify those 
93.4 	persons whose property is to be included on the assessment roll that year if the person's 
93.5 	address is known to the assessor, otherwise the occupant of the property. The notice shall 
93.6 	be in writing and shall be sent by ordinary mail at least ten days before the meeting of the 
93.7 	local board of appeal and equalization under section 274.01 or the review process established 
93.8 	under section 274.13, subdivision 1c. Upon written request by the owner of the property, 
93.9 	the assessor may send the notice in electronic form or by electronic mail instead of on paper 
93.10 	or by ordinary mail. It shall contain: (1) the market value for the current and prior assessment, 
93.11 	(2) the qualifying amount of any improvements under section 273.11, subdivision 16, for 
93.12 	the current assessment, (3) the market value subject to taxation after subtracting the amount 
93.13 	of any qualifying improvements for the current assessment, (4) the classification of the 
93.14 	property for the current and prior assessment, (5) the assessor's office address, and (6) the 
93.15 	dates, places, and times set for the meetings of the local board of appeal and equalization, 
93.16 	the review process established under section 274.13, subdivision 1c, and the county board 
93.17 	of appeal and equalization. If the classification of the property has changed between the 
93.18 	current and prior assessments, a specific note to that effect shall be prominently listed on 
93.19 	the statement. The commissioner of revenue shall specify the form of the notice. The assessor 
93.20 	shall attach to the assessment roll a statement that the notices required by this section have 
93.21 	been mailed. Any assessor who is not provided sufficient funds from the assessor's governing 
93.22 	body to provide such notices, may make application to the commissioner of revenue to 
93.23 	finance such notices. The commissioner of revenue shall conduct an investigation and, if 
93.24 	satisfied that the assessor does not have the necessary funds, issue a certification to the 
93.25 	commissioner of management and budget of the amount necessary to provide such notices. 
93.26 	The commissioner of management and budget shall issue a warrant payment for such amount 
93.27 	and shall deduct such amount from any state payment to such county or municipality. The 
93.28 	necessary funds to make such payments are hereby appropriated. Failure to receive the 
93.29 	notice shall in no way affect the validity of the assessment, the resulting tax, the procedures 
93.30 	of any board of review or equalization, or the enforcement of delinquent taxes by statutory 
93.31 	means.

93.32 	Sec. 62. Minnesota Statutes 2016, section 287.08, is amended to read:
93.33 	287.08 TAX, HOW PAYABLE; RECEIPTS.
94.1 	(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any 
94.2 	county in this state in which the real property or some part is located at or before the time 
94.3 	of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and 
94.4 	the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes 
94.5 	any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall 
94.6 	be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from 
94.7 	taxation the endorsement shall, in substance, be "exempt from registration tax." In either 
94.8 	case the receipt must be signed by the treasurer. In case the treasurer is unable to determine 
94.9 	whether a claim of exemption should be allowed, the tax must be paid as in the case of a 
94.10 	taxable mortgage. For documents submitted electronically, the endorsements and tax amount 
94.11 	shall be affixed electronically and no signature by the treasurer will be required. The actual 
94.12 	payment method must be arranged in advance between the submitter and the receiving 
94.13 	county.
94.14 	(b) The county treasurer may refund in whole or in part any mortgage registry tax 
94.15 	overpayment if a written application by the taxpayer is submitted to the county treasurer 
94.16 	within 3-1/2 years from the date of the overpayment. If the county has not issued a denial 
94.17 	of the application, the taxpayer may bring an action in Tax Court in the county in which 
94.18 	the tax was paid at any time after the expiration of six months from the time that the 
94.19 	application was submitted. A denial of refund may be appealed within 60 days from the 
94.20 	date of the denial by bringing an action in Tax Court in the county in which the tax was 
94.21 	paid. The action is commenced by the serving of a petition for relief on the county treasurer, 
94.22 	and by filing a copy with the court. The county attorney shall defend the action. The county 
94.23 	treasurer shall notify the treasurer of each county that has or would receive a portion of the 
94.24 	tax as paid.
94.25 	(c) If the county treasurer determines a refund should be paid, or if a refund is ordered 
94.26 	by the court, the county treasurer of each county that actually received a portion of the tax 
94.27 	shall immediately pay a proportionate share of three percent of the refund using any available 
94.28 	county funds. The county treasurer of each county that received, or would have received, 
94.29 	a portion of the tax shall also pay their county's proportionate share of the remaining 97 
94.30 	percent of the court-ordered refund on or before the 20th day of the following month using 
94.31 	solely the mortgage registry tax funds that would be paid to the commissioner of revenue 
94.32 	on that date under section 287.12. If the funds on hand under this procedure are insufficient 
94.33 	to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in 
94.34 	which the action was brought shall file a claim with the commissioner of revenue under 
94.35 	section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the 
95.1 	remaining portion upon receipt of a warrant payment from the state issued pursuant to the 
95.2 	claim.
95.3 	(d) When any mortgage covers real property located in more than one county in this 
95.4 	state the total tax must be paid to the treasurer of the county where the mortgage is first 
95.5 	presented for recording, and the payment must be receipted as provided in paragraph (a). 
95.6 	If the principal debt or obligation secured by such a multiple county mortgage exceeds 
95.7 	$10,000,000, the nonstate portion of the tax must be divided and paid over by the county 
95.8 	treasurer receiving it, on or before the 20th day of each month after receipt, to the county 
95.9 	or counties entitled in the ratio that the estimated market value of the real property covered 
95.10 	by the mortgage in each county bears to the estimated market value of all the real property 
95.11 	in this state described in the mortgage. In making the division and payment the county 
95.12 	treasurer shall send a statement giving the description of the real property described in the 
95.13 	mortgage and the estimated market value of the part located in each county. For this purpose, 
95.14 	the treasurer of any county may require the treasurer of any other county to certify to the 
95.15 	former the estimated market value of any tract of real property in any mortgage.
95.16 	(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee 
95.17 	may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee 
95.18 	collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee 
95.19 	has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax 
95.20 	collected for that purpose and the mortgagor is relieved of any further obligation to pay the 
95.21 	tax as to the amount collected by the mortgagee for this purpose.

95.22 	Sec. 63. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:
95.23 		Subdivision 1.Cities of the first class. (a) The commissioner shall order and direct a 
95.24 	surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross 
95.25 	premiums, less return premiums, on all direct business received by any licensed foreign or 
95.26 	domestic fire insurance company on property in a city of the first class, or by its agents for 
95.27 	it, in cash or otherwise.
95.28 	(b) By July 31 and December 31 of each year, the commissioner of management and 
95.29 	budget shall pay issue to each city of the first class a warrant payment for an amount equal 
95.30 	to the total amount of the surcharge on the premiums collected within that city since the 
95.31 	previous payment.
95.32 	(c) The treasurer of the city shall place the money received under this subdivision in a 
95.33 	special account or fund to defray all or a portion of the employer contribution requirement 
95.34 	of public employees police and fire plan coverage for city firefighters.

96.1 	Sec. 64. Minnesota Statutes 2016, section 299C.21, is amended to read:
96.2 	299C.21 PENALTY ON LOCAL OFFICER REFUSING INFORMATION.
96.3 	If any public official charged with the duty of furnishing to the bureau fingerprint records, 
96.4 	biological specimens, reports, or other information required by sections 299C.06, 299C.10, 
96.5 	299C.105, 299C.11, 299C.17, shall neglect or refuse to comply with such requirement, the 
96.6 	bureau, in writing, shall notify the state, county, or city officer charged with the issuance 
96.7 	of a warrant for the payment of the salary of such official. Upon the receipt of the notice 
96.8 	the state, county, or city official shall withhold the issuance of a warrant for the payment 
96.9 	of the salary or other compensation accruing to such officer for the period of 30 days 
96.10 	thereafter until notified by the bureau that such suspension has been released by the 
96.11 	performance of the required duty.

96.12 	Sec. 65. Minnesota Statutes 2016, section 348.05, is amended to read:
96.13 	348.05 COMMISSIONER OF MANAGEMENT AND BUDGET TO ISSUE 
96.14 	WARRANT PAYMENT.
96.15 	The commissioner of management and budget shall audit all such claims, and, on the 
96.16 	first Monday of October, in each year, shall issue a warrant payment to the several claimants 
96.17 	for the amount to which each is entitled; but, if the aggregate of compensation due to all 
96.18 	such claimants shall exceed the appropriation therefor, the commissioner shall distribute 
96.19 	the available amount amongst them pro rata, which distribution shall relieve the state from 
96.20 	further obligation to such claimants for the year.

96.21 	Sec. 66. Minnesota Statutes 2016, section 352.04, subdivision 9, is amended to read:
96.22 		Subd. 9.Erroneous deductions, canceled warrants payments. (a) Deductions taken 
96.23 	from the salary of an employee for the retirement fund in excess of required amounts must, 
96.24 	upon discovery and verification by the department making the deduction, be refunded to 
96.25 	the employee.
96.26 	(b) If a deduction for the retirement fund is taken from a salary warrant or check payment, 
96.27 	and the check payment is canceled or the amount of the warrant or check payment returned 
96.28 	to the funds of the department making the payment, the sum deducted, or the part of it 
96.29 	required to adjust the deductions, must be refunded to the department or institution if the 
96.30 	department applies for the refund on a form furnished by the director. The department's 
96.31 	payments must likewise be refunded to the department.
97.1 	(c) If erroneous employee deductions and employer contributions are caused by an error 
97.2 	in plan coverage involving the plan and any other plans specified in section 356.99, that 
97.3 	section applies. If the employee should have been covered by the plan governed by chapter 
97.4 	352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken 
97.5 	in error must be directly transferred to the applicable employee's account in the correct 
97.6 	retirement plan, with interest at the rate of 0.71 percent per month until June 30, 2015, and 
97.7 	0.667 percent per month thereafter, compounded annually, from the first day of the month 
97.8 	following the month in which coverage should have commenced in the correct defined 
97.9 	contribution plan until the end of the month in which the transfer occurs.

97.10 	Sec. 67. Minnesota Statutes 2016, section 352.05, is amended to read:
97.11 	352.05 COMMISSIONER OF MANAGEMENT AND BUDGET TO BE 
97.12 	TREASURER OF SYSTEM.
97.13 	The commissioner of management and budget is ex officio treasurer of the retirement 
97.14 	funds of the system. The general bond to the state shall cover all liability for actions as 
97.15 	treasurer of these funds. Funds of the system received by the commissioner of management 
97.16 	and budget must be set aside in the state treasury to the credit of the proper fund. The 
97.17 	commissioner of management and budget shall deliver to the director copies of all payroll 
97.18 	abstracts of the state together with the commissioner of management and budget's warrants
97.19 	payments covering the deductions made on these payroll abstracts for the retirement fund. 
97.20 	The director shall have a list made of the commissioner of management and budget's warrants
97.21 	payments. These warrants payments must then be credited to the retirement fund. The 
97.22 	commissioner of management and budget shall pay out of this fund only upon abstracts 
97.23 	signed by the director, or by the finance officer designated by the director during the disability 
97.24 	or the absence of the director from the city of St. Paul, Minnesota. Abstracts for investments 
97.25 	may be signed by the executive director of the State Board of Investment.

97.26 	Sec. 68. Minnesota Statutes 2016, section 352.115, subdivision 12, is amended to read:
97.27 		Subd. 12.Death, return of warrants payments. If at the time of death a retired 
97.28 	employee, a disabled employee, or a survivor has in possession the commissioner of 
97.29 	management and budget's warrants payments covering a retirement annuity, disability 
97.30 	benefit, or survivor benefit from the retirement fund, in the absence of probate proceedings, 
97.31 	and upon the return of the warrants payments for cancellation, payment of the accrued 
97.32 	annuity or benefit, shall be made as provided in subdivision 11, or 352.12, subdivision 4. 
98.1 	Payments made under this subdivision shall be a bar to recovery by any other person or 
98.2 	persons.

98.3 	Sec. 69. Minnesota Statutes 2016, section 352.12, subdivision 13, is amended to read:
98.4 		Subd. 13.Refund, beneficiary. If upon death a former employee has in possession a 
98.5 	commissioner of management and budget's warrant payment which does not exceed $1,000 
98.6 	covering a refund of accumulated contributions in the retirement fund, in the absence of 
98.7 	probate proceedings the commissioner of management and budget's warrantpayment may 
98.8 	be returned for cancellation, and then upon application made by the last designated 
98.9 	beneficiary of the deceased former employee, refund of the accumulated contributions must 
98.10 	be paid to the last designated beneficiary. Payments made under this subdivision are a bar 
98.11 	to recovery by any other person or persons.

98.12 	Sec. 70. Minnesota Statutes 2016, section 353.05, is amended to read:
98.13 	353.05 CUSTODIAN OF FUNDS.
98.14 	The commissioner of management and budget shall be ex officio treasurer of the 
98.15 	retirement funds of the association and the general bond of the commissioner of management 
98.16 	and budget to the state must be so conditioned as to cover all liability for acts as treasurer 
98.17 	of these funds. All money of the association received by the commissioner of management 
98.18 	and budget must be set aside in the state treasury to the credit of the proper fund or account. 
98.19 	The commissioner of management and budget shall transmit monthly to the executive 
98.20 	director a detailed statement of all amounts so received and credited to the funds. Payments 
98.21 	out of the funds may only be made on warrants as payments issued by the commissioner of 
98.22 	management and budget, upon abstracts signed by the executive director; provided that 
98.23 	abstracts for investment may be signed by the executive director of the State Board of 
98.24 	Investment.

98.25 	Sec. 71. Minnesota Statutes 2016, section 353.27, subdivision 7, is amended to read:
98.26 		Subd. 7.Adjustment for erroneous receipts or disbursements. (a) Except as provided 
98.27 	in paragraph (b), erroneous employee deductions and erroneous employer contributions and 
98.28 	additional employer contributions to the general employees retirement plan of the Public 
98.29 	Employees Retirement Association or to the public employees police and fire retirement 
98.30 	plan for a person who otherwise does not qualify for membership under this chapter, are 
98.31 	considered:
99.1 	(1) valid if the initial erroneous deduction began before January 1, 1990. Upon 
99.2 	determination of the error by the association, the person may continue membership in the 
99.3 	association while employed in the same position for which erroneous deductions were taken, 
99.4 	or file a written election to terminate membership and apply for a refund upon termination 
99.5 	of public service or defer an annuity under section 353.34; or
99.6 	(2) invalid, if the initial erroneous employee deduction began on or after January 1, 
99.7 	1990. Upon determination of the error, the association shall refund all erroneous employee 
99.8 	deductions and all erroneous employer contributions as specified in paragraph (e). No person 
99.9 	may claim a right to continued or past membership in the association based on erroneous 
99.10 	deductions which began on or after January 1, 1990.
99.11 	(b) Erroneous deductions taken from the salary of a person who did not qualify for 
99.12 	membership in the general employees retirement plan of the Public Employees Retirement 
99.13 	Association or in the public employees police and fire retirement plan by virtue of concurrent 
99.14 	employment before July 1, 1978, which required contributions to another retirement fund 
99.15 	or relief association established for the benefit of officers and employees of a governmental 
99.16 	subdivision, are invalid. Upon discovery of the error, allowable service credit for all invalid 
99.17 	service if forfeited and, upon termination of public service, the association shall refund all 
99.18 	erroneous employee deductions to the person, with interest as determined under section 
99.19 	353.34, subdivision 2, and all erroneous employer contributions without interest to the 
99.20 	employer. This paragraph has both retroactive and prospective application.
99.21 	(c) Adjustments to correct employer contributions and employee deductions taken in 
99.22 	error from amounts which are not salary under section 353.01, subdivision 10, must be 
99.23 	made as specified in paragraph (e). The period of adjustment must be limited to the fiscal 
99.24 	year in which the error is discovered by the association and the immediate two preceding 
99.25 	fiscal years.
99.26 	(d) If there is evidence of fraud or other misconduct on the part of the employee or the 
99.27 	employer, the board of trustees may authorize adjustments to the account of a member or 
99.28 	former member to correct erroneous employee deductions and employer contributions on 
99.29 	invalid salary and the recovery of any overpayments for a period longer than provided for 
99.30 	under paragraph (c).
99.31 	(e) Upon discovery of the receipt of erroneous employee deductions and employer 
99.32 	contributions under paragraph (a), clause (2), or paragraph (c), the association must require 
99.33 	the employer to discontinue the erroneous employee deductions and erroneous employer 
99.34 	contributions reported on behalf of a member. Upon discontinuation, the association must:
100.1 	(1) for a member, provide a refund in the amount of the invalid employee deductions 
100.2 	with interest on the invalid employee deductions at the rate specified under section 353.34, 
100.3 	subdivision 2, from the received date of each invalid salary transaction through the date the 
100.4 	credit or refund is made;
100.5 	(2) for a former member who:
100.6 	(i) is not receiving a retirement annuity or benefit, return the erroneous employee 
100.7 	deductions to the former member through a refund with interest at the rate specified under 
100.8 	section 353.34, subdivision 2, from the received date of each invalid salary transaction 
100.9 	through the date the credit or refund is made; or
100.10 	(ii) is receiving a retirement annuity or disability benefit, or a person who is receiving 
100.11 	an optional annuity or survivor benefit, for whom it has been determined an overpayment 
100.12 	must be recovered, adjust the payment amount and recover the overpayments as provided 
100.13 	under this section; and
100.14 	(3) return the invalid employer contributions reported on behalf of a member or former 
100.15 	member to the employer by providing a credit against future contributions payable by the 
100.16 	employer.
100.17 	(f) In the event that a salary warrant or check payment from which a deduction for the 
100.18 	retirement fund was taken has been canceled or the amount of the warrant or checkpayment
100.19 	returned to the funds of the department making the payment, a refund of the sum deducted, 
100.20 	or any portion of it that is required to adjust the deductions, must be made to the department 
100.21 	or institution.
100.22 	(g) If the association discovers that a retirement annuity, survivor benefit, or disability 
100.23 	benefit has been incorrectly calculated by using invalid service or salary, or due to any 
100.24 	erroneous calculation procedure, the association must recalculate the annuity or benefit 
100.25 	payable and begin payment of the corrected annuity or benefit effective the first of the month 
100.26 	following discovery of the error. Any overpayment resulting from the incorrect calculation 
100.27 	must be recovered as provided under subdivision 7b, if the accrual date, or any adjustment 
100.28 	in the amount of the annuity or benefit calculated after the accrual date, except adjustments 
100.29 	required under section 353.656, subdivision 4, falls within the current fiscal year and the 
100.30 	two immediate previous fiscal years.
100.31 	(h) Notwithstanding the provisions of this subdivision, the association may apply the 
100.32 	Revenue Procedures defined in the federal Internal Revenue Service Employee Plans 
100.33 	Compliance Resolution System and not issue a refund of erroneous employee deductions 
101.1 	and employer contributions or not recover a small overpayment of benefits if the cost to 
101.2 	correct the error would exceed the amount of the member refund or overpayment.
101.3 	(i) Any fees or penalties assessed by the federal Internal Revenue Service for any failure 
101.4 	by an employer to follow the statutory requirements for reporting eligible members and 
101.5 	salary must be paid by the employer.

101.6 	Sec. 72. Minnesota Statutes 2016, section 354.42, subdivision 7, is amended to read:
101.7 		Subd. 7.Erroneous salary deductions or direct payments. (a) Any deductions taken 
101.8 	from the salary of an employee for the retirement fund in excess of amounts required must 
101.9 	be refunded to the employee upon the discovery of the error and after the verification of 
101.10 	the error by the employing unit making the deduction. The corresponding excess employer 
101.11 	contribution and excess additional employer contribution amounts attributable to the 
101.12 	erroneous salary deduction must be refunded to the employing unit.
101.13 	(b) If salary deductions and employer contributions were erroneously transmitted to the 
101.14 	retirement fund and should have been transmitted to the plan covered by chapter 352D, 
101.15 	353D, 354B, or 354D, the executive director must transfer these salary deductions and 
101.16 	employer contributions to the account of the appropriate person under the applicable plan. 
101.17 	The transfer to the applicable defined contribution plan account must include interest at the 
101.18 	rate of 0.71 percent per month, compounded annually, from the first day of the month 
101.19 	following the month in which coverage should have commenced in the defined contribution 
101.20 	plan until the end of the month in which the transfer occurs.
101.21 	(c) A potential transfer under paragraph (b) that would cause the plan to fail to be a 
101.22 	qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be 
101.23 	made by the executive director. Within 30 days after being notified by the Teachers 
101.24 	Retirement Association of an unmade potential transfer under this paragraph, the employer 
101.25 	of the affected person must transmit an amount representing the applicable salary deductions 
101.26 	and employer contributions, without interest, to the account of the applicable person under 
101.27 	the appropriate plan. The retirement association must provide a credit for the amount of the 
101.28 	erroneous salary deductions and employer contributions against future contributions from 
101.29 	the employer.
101.30 	(d) If a salary warrant or check payment from which a deduction for the retirement fund 
101.31 	was taken has been canceled or the amount of the warrant or if a check payment has been 
101.32 	returned to the funds of the employing unit making the payment, a refund of the amount 
101.33 	deducted, or any portion of it that is required to adjust the salary deductions, must be made 
101.34 	to the employing unit.
102.1 	(e) Erroneous direct payments of member-paid contributions or erroneous salary 
102.2 	deductions that were not refunded during the regular payroll cycle processing must be 
102.3 	refunded to the member, plus interest computed using the rate and method specified in 
102.4 	section 354.49, subdivision 2.
102.5 	(f) Any refund under this subdivision that would cause the plan to fail to be a qualified 
102.6 	plan under section 401(a) of the Internal Revenue Code, as amended, may not be refunded 
102.7 	and instead must be credited against future contributions payable by the employer. The 
102.8 	employer is responsible for refunding to the applicable employee any amount that was 
102.9 	erroneously deducted from the salary of the employee, with interest as specified in paragraph 
102.10 	(e).
102.11 	(g) If erroneous employee deductions and employer contributions are caused by an error 
102.12 	in plan coverage involving the plan and any other plan specified in section 356.99, that 
102.13 	section applies.

102.14 	Sec. 73. Minnesota Statutes 2016, section 354.52, subdivision 4, is amended to read:
102.15 		Subd. 4.Reporting and remittance requirements. An employer shall remit all amounts 
102.16 	due to the association and furnish a statement indicating the amount due and transmitted 
102.17 	with any other information required by the executive director. If an amount due is not 
102.18 	received by the association within 14 calendar days of the payroll warrant payment, the 
102.19 	amount accrues interest at an annual rate of 8.5 percent compounded annually from the due 
102.20 	date until the amount is received by the association. All amounts due and other employer 
102.21 	obligations not remitted within 60 days of notification by the association must be certified 
102.22 	to the commissioner of management and budget who shall deduct the amount from any state 
102.23 	aid or appropriation amount applicable to the employing unit.

102.24 	Sec. 74. Minnesota Statutes 2016, section 354.52, subdivision 4b, is amended to read:
102.25 		Subd. 4b.Payroll cycle reporting requirements. An employing unit shall provide the 
102.26 	following data to the association for payroll warrants payments on an ongoing basis within 
102.27 	14 calendar days after the date of the payroll warrant payments in a format prescribed by 
102.28 	the executive director:
102.29 	(1) association member number;
102.30 	(2) employer-assigned employee number;
102.31 	(3) Social Security number;
102.32 	(4) amount of each salary deduction;
103.1 	(5) amount of salary as defined in section 354.05, subdivision 35, from which each 
103.2 	deduction was made;
103.3 	(6) reason for payment;
103.4 	(7) the beginning and ending dates of the payroll period covered and the date of actual 
103.5 	payment;
103.6 	(8) fiscal year of salary earnings;
103.7 	(9) total remittance amount including employee, employer, and additional employer 
103.8 	contributions;
103.9 	(10) reemployed annuitant salary under section 354.44, subdivision 5; and
103.10 	(11) other information as may be required by the executive director.

103.11 	Sec. 75. Minnesota Statutes 2016, section 401.15, subdivision 1, is amended to read:
103.12 		Subdivision 1.Certified statements; determinations; adjustments. Within 60 days 
103.13 	of the end of each calendar quarter, participating counties which have received the payments 
103.14 	authorized by section 401.14 shall submit to the commissioner certified statements detailing 
103.15 	the amounts expended and costs incurred in furnishing the correctional services provided 
103.16 	in sections 401.01 to 401.16. Upon receipt of certified statements, the commissioner shall, 
103.17 	in the manner provided in sections 401.10 and 401.12, determine the amount each 
103.18 	participating county is entitled to receive, making any adjustments necessary to rectify any 
103.19 	disparity between the amounts received pursuant to the estimate provided in section 401.14
103.20 	and the amounts actually expended. If the amount received pursuant to the estimate is greater 
103.21 	than the amount actually expended during the quarter, the commissioner may withhold the 
103.22 	difference from any subsequent monthly payments made pursuant to section 401.14. Upon 
103.23 	certification by the commissioner of the amount a participating county is entitled to receive 
103.24 	under the provisions of section 401.14 or of this subdivision the commissioner of 
103.25 	management and budget shall thereupon issue a state warrant payment to the chief fiscal 
103.26 	officer of each participating county for the amount due together with a copy of the certificate 
103.27 	prepared by the commissioner.

103.28 	Sec. 76. Minnesota Statutes 2016, section 446A.086, subdivision 4, is amended to read:
103.29 		Subd. 4.Notifications; payment; appropriation. (a) After receipt of a notice of a 
103.30 	default or potential default in payment of principal or interest in debt obligations covered 
103.31 	by this section or an agreement under this section, and after consultation with the 
103.32 	governmental unit and the paying agent, and after verification of the accuracy of the 
104.1 	information provided, the authority shall notify the commissioner of the potential default. 
104.2 	The notice must include a final figure as to the amount due that the governmental unit will 
104.3 	be unable to repay on the date due.
104.4 	(b) Upon receipt of this notice from the authority, the commissioner shall issue a warrant
104.5 	payment and authorize the authority to pay to the bond holders or paying agent for the debt 
104.6 	obligation the specified amount on or before the date due. The amounts needed for the 
104.7 	purposes of this subdivision are annually appropriated to the authority from the general 
104.8 	fund.

104.9 	Sec. 77. Minnesota Statutes 2016, section 446A.16, subdivision 1, is amended to read:
104.10 		Subdivision 1.Functions of commissioner of management and budget. Except as 
104.11 	otherwise provided in this section, money of the authority must be paid to the commissioner 
104.12 	of management and budget as agent of the authority and the commissioner shall not 
104.13 	commingle the money with other money. The money in the accounts of the authority must 
104.14 	be paid out only on warrants drawn by the commissioner of management and budget on 
104.15 	requisition of the chair of the authority or of another officer or employee as the authority 
104.16 	authorizes. Deposits of the authority's money must, if required by the commissioner or the 
104.17 	authority, be secured by obligations of the United States or of the state of a market value 
104.18 	equal at all times to the amount of the deposit and all banks and trust companies are 
104.19 	authorized to give security for the deposits.

104.20 	Sec. 78. Minnesota Statutes 2016, section 462A.18, subdivision 1, is amended to read:
104.21 		Subdivision 1.Functions of commissioner of management and budget. All moneys 
104.22 	of the agency, except as otherwise authorized or provided in this section, shall be paid to 
104.23 	the commissioner of management and budget as agent of the agency, who shall not 
104.24 	commingle such moneys with any other moneys. The moneys in such accounts shall be 
104.25 	paid out on warrants drawn by the commissioner on requisition of the chair of the agency 
104.26 	or of such other officer or employee as the agency shall authorize to make such requisition. 
104.27 	All deposits of such moneys shall, if required by the commissioner or the agency, be secured 
104.28 	by obligations of the United States or of the state of a market value equal at all times to the 
104.29 	amount of the deposit and all banks and trust companies are authorized to give such security 
104.30 	for such deposits.

105.1 	Sec. 79. Minnesota Statutes 2016, section 475A.04, subdivision 1, is amended to read:
105.2 		Subdivision 1.Procedure. In the event that funds sufficient to pay all of the principal 
105.3 	and interest due on any guaranteed bond are not in the hands of the municipal treasurer or 
105.4 	the paying agent at least 15 days before the due date, the treasurer or agent shall report the 
105.5 	amount of the deficiency to the paying agent and the auditor who shall grant a loan to the 
105.6 	issuer in this amount and shall certify to the issuer, the paying agent, and the auditor and 
105.7 	treasurer of each county in which property subject to taxation by the issuer is situated, the 
105.8 	amount of the loan and interest to accrue thereon to the due date of the loan, and the 
105.9 	commissioner of management and budget shall issue a warrant payment for the principal 
105.10 	amount and shall remit it to the paying agent on or before the due date. If the municipal 
105.11 	treasurer fails to deposit funds with the paying agent sufficient to pay all principal and 
105.12 	interest due on any guaranteed bond on any date, without having previously given the notice 
105.13 	herein required, the paying agent may report the amount of the deficiency to the 
105.14 	commissioner of management and budget, who shall forthwith grant a loan to the issuer for 
105.15 	this amount plus interest to accrue thereon for one month at the rate represented by the 
105.16 	coupons then due, and the loan shall be certified and remitted as provided above. The paying 
105.17 	agent may advance its own funds for the payment of any guaranteed bonds and interest due 
105.18 	for which it has not received sufficient funds from the municipality, and may contract with 
105.19 	the municipality to make such advances, and shall be entitled to reimbursement therefor 
105.20 	from the proceeds of the loan, with interest at the rate represented by the coupons due. The 
105.21 	issuing municipality shall give a receipt to the commissioner of management and budget 
105.22 	for the amount of the loan and interest.

105.23 	Sec. 80. Minnesota Statutes 2016, section 525.841, is amended to read:
105.24 	525.841 ESCHEAT RETURNED.
105.25 	In all such cases the commissioner of management and budget shall be furnished with 
105.26 	a certified copy of the court's order assigning the escheated property to the persons entitled 
105.27 	thereto, and upon notification of payment of the estate tax, the commissioner of management 
105.28 	and budget shall draw a warrant issue a payment or execute a proper conveyance to the 
105.29 	persons designated in such order. In the event any escheated property has been sold pursuant 
105.30 	to sections 11A.04, clause (9), and 11A.10, subdivision 2, or 16B.281 to 16B.287, then the 
105.31 	warrant payment shall be for the appraised value as established during the administration 
105.32 	of the decedent's estate. There is hereby annually appropriated from any moneys in the state 
105.33 	treasury not otherwise appropriated an amount sufficient to make payment to all such 
105.34 	designated persons. No interest shall be allowed on any amount paid to such persons.

106.1 	ARTICLE 4
106.2 	ADMINISTRATIVE RULEMAKING

106.3 	Section 1. Minnesota Statutes 2016, section 3.842, subdivision 4a, is amended to read:
106.4 		Subd. 4a.Objections to rules or proposed rules. (a) For purposes of this subdivision, 
106.5 	"committee" means the house of representatives policy committee or senate policy committee 
106.6 	with primary jurisdiction over state governmental operations. The commission or a committee 
106.7 	may object to a rule or proposed rule as provided in this subdivision. If the commission or 
106.8 	a committee objects to all or some portion of a rule because the commission or committee 
106.9 	considers it to be on the grounds that the rule or proposed rule:
106.10 	(1) is beyond the procedural or substantive authority delegated to the agency, including 
106.11 	a proposed rule submitted under section 14.15, subdivision 4, or 14.26, subdivision 3, 
106.12 	paragraph (c);
106.13 	(2) is inconsistent with the enabling statute;
106.14 	(3) is unnecessary or redundant;
106.15 	(4) has a substantial economic impact as defined in section 14.02, subdivision 5;
106.16 	(5) is not based on sound, reasonably available scientific, technical, economic, or other 
106.17 	information;
106.18 	(6) is not cost-effective;
106.19 	(7) is unduly burdensome; or
106.20 	(8) is more restrictive than the standard, limitation, or requirement imposed by federal 
106.21 	law or rule pertaining to the same subject matter.
106.22 	If the commission or committee objects to all or some portion of a rule or proposed rule, 
106.23 	the commission or committee may shall file that objection in the Office of the Secretary of 
106.24 	State. The filed objection must contain a concise statement of the commission's or 
106.25 	committee's reasons for its action. An objection to a proposed rule submitted by the 
106.26 	commission or a committee under section 14.15, subdivision 4, or 14.26, subdivision 3, 
106.27 	paragraph (c), may not be filed before the rule is adopted For a proposed rule, the objection 
106.28 	must be filed within 30 days of receipt of the notice under section 14.14, 14.22, 14.386, 
106.29 	14.388, 14.389, or 14.3895.
106.30 	(b) The secretary of state shall affix to each objection a certification of the date and time 
106.31 	of its filing and as soon after the objection is filed as practicable shall electronically transmit 
106.32 	a certified copy of it to the agency issuing the rule in question and to the revisor of statutes. 
107.1 	The secretary of state shall also maintain a permanent register open to public inspection of 
107.2 	all objections by the commission or committee.
107.3 	(c) The commission or committee shall publish and index an objection filed under this 
107.4 	section in the next issue of the State Register. The revisor of statutes shall indicate the 
107.5 	existence of the objection adjacent to the rule in question when that rule is published in 
107.6 	Minnesota Rules.
107.7 	(d) Within 14 days after the filing of an objection by the commission or committee to a 
107.8 	rule or proposed rule, the issuing agency shall respond in writing to the objecting entity. 
107.9 	After receipt of the response, the commission or committee may withdraw or modify its 
107.10 	objection. After the filing of an objection that is not subsequently withdrawn, the agency 
107.11 	may not adopt the rule until the legislature adjourns the annual legislative session that began 
107.12 	after the objection was filed. If the commission files an objection that is not subsequently 
107.13 	withdrawn, the commission may, as soon as practical, make a recommendation on a bill 
107.14 	that approves the proposed rule, prohibits adoption of the proposed rule, or amends or repeals 
107.15 	the law governing a previously adopted rule for which an objection was filed.
107.16 	(e) After the filing of an objection by the commission or committee that is not 
107.17 	subsequently withdrawn, the burden is upon the agency in any proceeding for judicial review 
107.18 	or for enforcement of the rule to establish that the whole or portion of the rule objected to 
107.19 	is valid and demonstrates that the objection raised under paragraph (a) is not justified, based 
107.20 	on the criteria for objecting to a rule under paragraph (a).
107.21 	(f) The failure of the commission or a committee to object to a rule is not an implied 
107.22 	legislative authorization of its validity.
107.23 	(g) In accordance with sections 14.44 and 14.45, the commission or a committee may 
107.24 	petition for a declaratory judgment to determine the validity of a rule objected to by the 
107.25 	commission or committee. The action must be started within two years after an objection 
107.26 	is filed in the Office of the Secretary of State.
107.27 	(h) The commission or a committee may intervene in litigation arising from agency 
107.28 	action. For purposes of this paragraph, agency action means the whole or part of a rule, or 
107.29 	the failure to issue a rule.

107.30 	Sec. 2. Minnesota Statutes 2016, section 14.002, is amended to read:
107.31 	14.002 STATE REGULATORY POLICY.
107.32 	The legislature recognizes the important and sensitive role for administrative rules in 
107.33 	implementing policies and programs created by the legislature. However, the legislature 
108.1 	finds that some regulatory rules and programs have become overly prescriptive and inflexible, 
108.2 	thereby increasing costs to the state, local governments, and the regulated community and 
108.3 	decreasing the effectiveness of the regulatory program. Therefore, whenever feasible, state 
108.4 	agencies must develop rules and regulatory programs that emphasize superior achievement 
108.5 	in meeting the agency's regulatory objectives and maximum flexibility for the regulated 
108.6 	party and the agency in meeting those goals.

108.7 	Sec. 3. Minnesota Statutes 2016, section 14.02, is amended by adding a subdivision to 
108.8 	read:
108.9 		Subd. 5.Substantial economic impact. A rule has a "substantial economic impact" if 
108.10 	the rule would result in, or likely result in:
108.11 	(1) an adverse effect or impact on the private-sector economy of the state of Minnesota 
108.12 	of $5,000,000 or more in a single year;
108.13 	(2) a significant increase in costs or prices for consumers, individual private-sector 
108.14 	industries, state agencies, local governments, individuals, or private-sector enterprises within 
108.15 	certain geographic regions inside the state of Minnesota;
108.16 	(3) significant adverse impacts on the competitiveness of private-sector Minnesota-based 
108.17 	enterprises, or on private-sector employment, investment, productivity, or innovation within 
108.18 	the state of Minnesota; or
108.19 	(4) compliance costs, in the first year after the rule takes effect, of more than $25,000 
108.20 	for any one business that has fewer than 50 full-time employees, or for any one statutory 
108.21 	or home rule charter city that has fewer than ten full-time employees.

108.22 	Sec. 4. Minnesota Statutes 2016, section 14.05, subdivision 1, is amended to read:
108.23 		Subdivision 1.Authority to adopt original rules restricted. (a) Each agency shall 
108.24 	adopt, amend, suspend, or repeal its rules:
108.25 	(1) in accordance with the procedures specified in sections 14.001 to 14.69, and;
108.26 	(2) only pursuant to authority delegated by law; and
108.27 	(3) in full compliance with its duties and obligations.
108.28 	(b) If a law authorizing rules is repealed, the rules adopted pursuant to that law are 
108.29 	automatically repealed on the effective date of the law's repeal unless there is another law 
108.30 	authorizing the rules.
109.1 	(c) Except as provided in section sections 14.055,14.06, 14.388, 14.389, and 14.3895,
109.2 	sections 14.001 to 14.69 shall not be authority for an agency to adopt, amend, suspend, or 
109.3 	repeal rules.

109.4 	Sec. 5. Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to 
109.5 	read:
109.6 		Subd. 1a.Limitation regarding certain policies, guidelines, and other interpretive 
109.7 	statements. An agency shall not seek to implement or enforce against any person a policy, 
109.8 	guideline, or other interpretive statement that meets the definition of a rule under this chapter 
109.9 	if the policy, guideline, or other interpretive statement has not been adopted as a rule in 
109.10 	accordance with this chapter including but not limited to solid waste policy plan revisions 
109.11 	authorized by other law. In any proceeding under chapter 14 challenging an agency action 
109.12 	prohibited by this subdivision, the reviewing authority must independently and without 
109.13 	deference to the agency determine if the agency has violated this subdivision. The agency 
109.14 	must overcome the presumption that its action may not be enforced as a rule.

109.15 	Sec. 6. Minnesota Statutes 2016, section 14.05, subdivision 2, is amended to read:
109.16 		Subd. 2.Authority to modify proposed rule. (a) An agency may modify a proposed 
109.17 	rule in accordance with the procedures of the Administrative Procedure Act. However, an 
109.18 	agency may not modify a proposed rule so that it is substantially different from the proposed 
109.19 	rule in the notice of intent to adopt rules or notice of hearing.
109.20 	(b) A modification does not make a proposed rule substantially different if:
109.21 	(1) the differences are within the scope of the matter announced in the notice of intent 
109.22 	to adopt or notice of hearing and are in character with the issues raised in that notice;
109.23 	(2) the differences are a logical outgrowth of the contents of the notice of intent to adopt 
109.24 	or notice of hearing and the comments submitted in response to the notice; and
109.25 	(3) the notice of intent to adopt or notice of hearing provided fair warning that the 
109.26 	outcome of that rulemaking proceeding could be the rule in question.
109.27 	(c) In determining whether the notice of intent to adopt or notice of hearing provided 
109.28 	fair warning that the outcome of that rulemaking proceeding could be the rule in question 
109.29 	the following factors must be considered:
109.30 	(1) the extent to which persons who will be affected by the rule should have understood 
109.31 	that the rulemaking proceeding on which it is based could affect their interests;
110.1 	(2) the extent to which the subject matter of the rule or issues determined by the rule are 
110.2 	different from the subject matter or issues contained in the notice of intent to adopt or notice 
110.3 	of hearing; and
110.4 	(3) the extent to which the effects of the rule differ from the effects of the proposed rule 
110.5 	contained in the notice of intent to adopt or notice of hearing.
110.6 	(d) A modification makes a proposed rule substantially different if the modification 
110.7 	causes a rule that did not previously have a substantial economic impact to have a substantial 
110.8 	economic impact.

110.9 	Sec. 7. Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to 
110.10 	read:
110.11 		Subd. 5a.Review and repeal of rules. By December 1 of each odd-numbered year, 
110.12 	beginning December 1, 2017, an agency must submit to the governor, the Legislative 
110.13 	Coordinating Commission, the policy and funding committees and divisions with jurisdiction 
110.14 	over the agency, and the revisor of statutes, a list of any rules or portions of rules that are 
110.15 	obsolete, unnecessary, or duplicative of other state or federal statutes or rules. The list must 
110.16 	also include an explanation of why the rule or portion of the rule is obsolete, unnecessary, 
110.17 	or duplicative of other state or federal statutes or rules. The agency must either report a 
110.18 	timetable for repeal of the rule or portion of the rule, or must develop a bill for submission 
110.19 	to the appropriate policy committee to repeal the obsolete, unnecessary, or duplicative rule. 
110.20 	A report submitted under this subdivision must be signed by the person in the agency who 
110.21 	is responsible for identifying and initiating repeal of obsolete rules. The report also must 
110.22 	identify the status of any rules identified in the prior report as obsolete, unnecessary, or 
110.23 	duplicative. If none of an agency's rules are obsolete, unnecessary, or duplicative, an agency's 
110.24 	report must state that conclusion.

110.25 	Sec. 8. Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to 
110.26 	read:
110.27 		Subd. 5b.Review and repeal of environmental assessment worksheets and impact 
110.28 	statements. By December 1, 2017, and each odd-numbered year thereafter, the 
110.29 	Environmental Quality Board, Pollution Control Agency, Department of Natural Resources, 
110.30 	and Department of Transportation, after consultation with political subdivisions, shall submit 
110.31 	to the governor, the Legislative Coordinating Commission, the chairs and ranking minority 
110.32 	members of the house of representatives and senate committees having jurisdiction over 
110.33 	environment and natural resources, and the revisor of statutes a list of mandatory 
111.1 	environmental assessment worksheets or mandatory environmental impact statements for 
111.2 	which the agency or a political subdivision is designated as the responsible government 
111.3 	unit, and for each worksheet or statement, a document including:
111.4 	(1) intended outcomes of the specific worksheet or statement;
111.5 	(2) the cost to state and local government and the private sector;
111.6 	(3) the relationship of the worksheet or statement to other local, state, and federal permits; 
111.7 	and
111.8 	(4) a justification for why the mandatory worksheet or statement should not be eliminated 
111.9 	and its intended outcomes achieved through an existing permit or other federal, state, or 
111.10 	local law.

111.11 	Sec. 9. Minnesota Statutes 2016, section 14.05, subdivision 6, is amended to read:
111.12 		Subd. 6.Veto of adopted rules. The governor may veto all or a severable portion of a 
111.13 	rule of an agency as defined in section 14.02, subdivisions 2 and 4, by submitting notice of 
111.14 	the veto to the State Register within 14 days of receiving a copy of the rule from the secretary 
111.15 	of state under section 14.16, subdivision 3, 14.26, subdivision 3 5, or14.386, or the agency 
111.16 	under section 14.389, subdivision 3, or section 14.3895. The veto is effective when the veto 
111.17 	notice is submitted to the State Register. This authority applies only to the extent that the 
111.18 	agency itself would have authority, through rulemaking, to take such action. If the governor 
111.19 	vetoes a rule or portion of a rule under this section, the governor shall notify the chairs of 
111.20 	the legislative committees having jurisdiction over the agency whose rule was vetoed.

111.21 	Sec. 10. Minnesota Statutes 2016, section 14.05, subdivision 7, is amended to read:
111.22 		Subd. 7.Electronic documents permitted. (a) If sections 14.05 to 14.3895 require an 
111.23 	agency to provide notice or documents to the public, the legislature, or other state agency, 
111.24 	the agency may send the notice or document, or a link to the notice or document, using any 
111.25 	reliable method of electronic transmission.
111.26 	(b) The agency must also send a paper copy of the notice or document if requested to 
111.27 	do so by a member of the public, legislature, or other state agency.
111.28 	(c) An agency may file rule-related documents with the Office of Administrative Hearings 
111.29 	by electronic transmission in the manner approved by that office and the Office of the 
111.30 	Revisor of Statutes by electronic transmission in the manner approved by that office.

112.1 	Sec. 11. Minnesota Statutes 2016, section 14.101, subdivision 1, is amended to read:
112.2 		Subdivision 1.Required notice. In addition to seeking information by other methods 
112.3 	designed to reach persons or classes categories of persons who might be affected by the 
112.4 	proposal, an agency, at least 60 days before publication of a notice of intent to adopt or a 
112.5 	notice of hearing, shall solicit comments from the public on the subject matter of a possible 
112.6 	rulemaking proposal under active consideration within the agency by causing notice to be 
112.7 	published in the State Register. The notice must include a description of the subject matter 
112.8 	of the proposal and the types of groups and individuals likely to be affected, and must 
112.9 	indicate where, when, and how persons may comment on the proposal and whether and 
112.10 	how drafts of any proposal may be obtained from the agency.
112.11 	This notice must be published within 60 days of the effective date of any new or 
112.12 	amendatory law requiring rules to be adopted, amended, or repealed.
112.13 	An agency intending to adopt an expedited rule under section 14.389 is exempt from 
112.14 	the requirements of this section.

112.15 	Sec. 12. [14.105] RULE NOTIFICATION.
112.16 		Subdivision 1.Rule notification list. (a) Each agency shall maintain a list of all persons 
112.17 	who have registered with the agency for the purpose of receiving notice of rule proceedings. 
112.18 	A person may register to receive notice of rule proceedings by submitting to the agency:
112.19 	(1) the person's electronic mail address; or
112.20 	(2) the person's name and United States mail address, along with a request to receive 
112.21 	copies of the notices by mail.
112.22 	(b) The agency shall post information on its Web site describing the registration process.
112.23 	(c) The agency may inquire as to whether those persons on the list in paragraph (a) wish 
112.24 	to remain on it and may remove persons for whom there is a negative reply or no reply 
112.25 	within 60 days.
112.26 		Subd. 2.Additional notice. (a) Each agency shall make reasonable efforts to notify 
112.27 	persons or categories of persons who may be significantly affected by the rule being proposed 
112.28 	by giving notice of its rule proceedings in newsletters, newspapers, or other publications, 
112.29 	or through other means of communication.
112.30 	(b) For each rulemaking, the agency shall develop an additional notice plan describing 
112.31 	its efforts to provide additional notification to persons or categories of persons who may be 
112.32 	affected by the proposed rule or must explain why these efforts were not made. The additional 
113.1 	notice plan must be submitted to the administrative law judge with the other submissions 
113.2 	required by section 14.14, subdivision 2a, or 14.26. The agency also may seek prior approval 
113.3 	of the additional notice plan under the rules of the Office of Administrative Hearings.

113.4 	Sec. 13. Minnesota Statutes 2016, section 14.116, is amended to read:
113.5 	14.116 NOTICE TO LEGISLATURE.
113.6 	(a) By January 15 each year, each agency must submit its current rulemaking docket 
113.7 	maintained under section 14.366, and the official rulemaking record required under section 
113.8 	14.365 for any rule adopted during the preceding calendar year, to the chairs and ranking 
113.9 	minority members of the legislative policy and budget committees with jurisdiction over 
113.10 	the subject matter of the proposed rule and to the Legislative Coordinating Commission. 
113.11 	Each agency must post a link to its rulemaking docket on the agency Web site home page.
113.12 	(b) When an agency mails sends a notice of intent to adopt ruleshearing under section 
113.13 	14.14 or a notice of intent to adopt rules or dual notice under section 14.22, the agency must 
113.14 	send a copy of the same notice and a copy of the statement of need and reasonableness to 
113.15 	the chairs and ranking minority party members of the legislative policy and budget 
113.16 	committees with jurisdiction over the subject matter of the proposed rules and to the 
113.17 	Legislative Coordinating Commission.
113.18 	(c) In addition, if the mailing of the notice is within two years of the effective date of 
113.19 	the law granting the agency authority to adopt the proposed rules, the agency shall make 
113.20 	reasonable efforts to send a copy of the notice and the statement to all sitting legislators 
113.21 	who were chief house of representatives and senate authors of the bill granting the rulemaking 
113.22 	authority. If the bill was amended to include this rulemaking authority, the agency shall 
113.23 	make reasonable efforts to send the notice and the statement to the chief house of 
113.24 	representatives and senate authors of the amendment granting rulemaking authority, rather 
113.25 	than to the chief authors of the bill.

113.26 	Sec. 14. Minnesota Statutes 2016, section 14.125, is amended to read:
113.27 	14.125 TIME LIMIT ON AUTHORITY TO ADOPT, AMEND, OR REPEAL 
113.28 	RULES.
113.29 	An agency shall publish a notice of intent to adopt rules or a notice of hearing under 
113.30 	section 14.14, or a notice of intent to adopt rules or dual notice under section 14.22, within 
113.31 	18 months of the effective date of the law authorizing or requiring rules to be adopted, 
113.32 	amended, or repealed. If the notice is not published within the time limit imposed by this 
114.1 	section, the authority for the rules expires. The agency shall not use other law in existence 
114.2 	at the time of the expiration of rulemaking authority under this section as authority to adopt, 
114.3 	amend, or repeal these rules agency shall report to the Legislative Coordinating Commission, 
114.4 	other appropriate committees of the legislature, and the governor its failure to publish a 
114.5 	notice and the reasons for that failure.
114.6 	An agency that publishes a notice of intent to adopt rules or a notice of hearing within 
114.7 	the time limit specified in this section may subsequently amend or repeal the rules without 
114.8 	additional legislative authorization.

114.9 	Sec. 15. Minnesota Statutes 2016, section 14.127, is amended to read:
114.10 	14.127 LEGISLATIVE APPROVAL REQUIRED.
114.11 		Subdivision 1.Cost thresholds Substantial economic impact. An agency must 
114.12 	determine if the cost of complying with a proposed rule in the first year after the rule takes 
114.13 	effect will exceed $25,000 for: (1) any one business that has less than 50 full-time employees; 
114.14 	or (2) any one statutory or home rule charter city that has less than ten full-time employees. 
114.15 	For purposes of this section, "business" means a business entity organized for profit or as 
114.16 	a nonprofit, and includes an individual, partnership, corporation, joint venture, association, 
114.17 	or cooperative has a substantial economic impact, as defined in section 14.02, subdivision 
114.18 	5.
114.19 		Subd. 2.Agency determination. An agency must make the determination required by 
114.20 	subdivision 1 before the close of the hearing record, or before the agency submits the record 
114.21 	to the administrative law judge if there is no hearing. The administrative law judge must 
114.22 	review and approve or disapprove the agency determination under this section agency gives 
114.23 	notice under section 14.14, 14.22, 14.225, or 14.389.
114.24 		Subd. 3.Legislative approval required. (a) If the agency determines that a proposed 
114.25 	rule has a substantial economic impact, the agency must request the legislative auditor to 
114.26 	convene a five-person peer review advisory panel to conduct an impact analysis of the 
114.27 	proposed rule. Within 30 days of receipt of the agency's request, the legislative auditor shall 
114.28 	convene a peer review advisory panel. The advisory panel must be made up of individuals 
114.29 	who have not directly or indirectly been involved in the work conducted or contracted by 
114.30 	the agency and who are not employed by the agency. The agency must pay each panel 
114.31 	member for the costs of the person's service on the panel, as determined by the legislative 
114.32 	auditor. The agency shall transfer an amount from the agency's operating budget to the 
114.33 	legislative auditor to pay for costs for convening the peer review advisory panel process. 
114.34 	The panel may receive written and oral comments from the public during its review. The 
115.1 	panel must submit its report within 60 days of being convened. The agency must receive a 
115.2 	final report from the panel before the agency conducts a public hearing on a proposed rule 
115.3 	or, if no hearing is held, before the rule is submitted to the administrative law judge. The 
115.4 	panel's report must include its conclusions on the extent to which the proposed rule:
115.5 	(1) is based on sound, reasonably available scientific, technical, economic, or other 
115.6 	information or rationale; and
115.7 	(2) is more restrictive than a standard, limitation, or requirement imposed by federal law 
115.8 	or rule pertaining to the same subject matter, and a justification based on sound, reasonably 
115.9 	available scientific, technical, economic, or other information and rationale that the more 
115.10 	stringent standard is necessary to protect the public's health, safety, or welfare.
115.11 	(b) If the agency determines that a rule does not have a substantial economic impact, 
115.12 	the administrative law judge must review this determination. If the administrative law judge 
115.13 	determines that a rule may have a substantial economic impact, the agency must have the 
115.14 	legislative auditor arrange for the analysis required by paragraph (a), and the agency must 
115.15 	give new notice of intent to adopt the proposed rule after receiving this analysis. The 
115.16 	administrative law judge may make this determination as part of the administrative law 
115.17 	judge's report on the proposed rule, or at any earlier time after the administrative law judge 
115.18 	is assigned to the rule proceeding.
115.19 	(c) If the agency determines that the cost exceeds the threshold in subdivision 1 proposed 
115.20 	rule has a substantial economic impact, or if the administrative law judge disapproves the 
115.21 	agency's determination that the cost rule does not exceed the threshold in subdivision 1, 
115.22 	any business that has less than 50 full-time employees or any statutory or home rule charter 
115.23 	city that has less than ten full-time employees may file a written statement with the agency 
115.24 	claiming a temporary exemption from the rules. Upon filing of such a statement with the 
115.25 	agency, the rules do not apply to that business or that city until the rules are have a substantial 
115.26 	economic impact, the agency or the administrative law judge shall deliver the determination 
115.27 	and peer review advisory panel report to the Legislative Coordinating Commission and to 
115.28 	the chairs and ranking minority members of the house of representatives and senate 
115.29 	committees and divisions with jurisdiction over the subject matter of the rule, and the 
115.30 	proposed rule does not take effect until the rule is approved by a law enacted after the agency 
115.31 	determination or administrative law judge disapproval.
115.32 		Subd. 4.Exceptions. (a) Subdivision 3 does not apply if the administrative law judge 
115.33 	approves an agency's determination that the legislature has appropriated money to sufficiently 
116.1 	fund the expected cost of the rule upon the business or city proposed to be regulated by the 
116.2 	rule.
116.3 	(b) (a) Subdivision 3 does not apply if the administrative law judge approves an agency's 
116.4 	determination that the rule has been proposed pursuant to a specific federal statutory or 
116.5 	regulatory mandate.
116.6 	(c) (b) This section does not apply if the rule is adopted under section 14.388 or under 
116.7 	another law specifying that the rulemaking procedures of this chapter do not apply.
116.8 	(d) (c) This section does not apply to a rule adopted by the Public Utilities Commission.
116.9 	(e) Subdivision 3 does not apply if the governor waives application of subdivision 3. 
116.10 	The governor may issue a waiver at any time, either before or after the rule would take 
116.11 	effect, but for the requirement of legislative approval. As soon as possible after issuing a 
116.12 	waiver under this paragraph, the governor must send notice of the waiver to the speaker of 
116.13 	the house and the president of the senate and must publish notice of this determination in 
116.14 	the State Register.
116.15 		Subd. 5.Severability. If an administrative law judge determines that part of a proposed 
116.16 	rule exceeds the threshold specified in subdivision 1 has a substantial economic impact, but 
116.17 	that a severable portion of a proposed rule does not exceed the threshold in subdivision 1
116.18 	have a substantial economic impact, the administrative law judge may provide that the 
116.19 	severable portion of the rule that does not exceed the threshold have a substantial economic 
116.20 	impact may take effect without legislative approval.

116.21 	Sec. 16. [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR 
116.22 	REMODELING; LEGISLATIVE NOTICE AND REVIEW.
116.23 		Subdivision 1.Definition. As used in this section, "residential construction" means the 
116.24 	new construction or remodeling of any building subject to the Minnesota Residential Code.
116.25 		Subd. 2.Impact on housing cost; agency determination. An agency must determine 
116.26 	if implementation of a proposed rule, or any portion of a proposed rule, will, on average, 
116.27 	increase the cost of residential construction or remodeling by $1,000 or more per unit. The 
116.28 	agency must make this determination before the close of the hearing record. Upon request 
116.29 	of a party affected by the proposed rule, an administrative law judge must review and 
116.30 	approve or disapprove an agency's determination that any portion of a proposed rule will 
116.31 	increase the cost of a dwelling unit by $1,000 or more.
116.32 		Subd. 3.Notice to legislature; legislative approval. (a) If the agency determines that 
116.33 	the impact of a proposed rule meets or exceeds the cost threshold provided in subdivision 
117.1 	2, or if the administrative law judge separately confirms the cost of any portion of a rule 
117.2 	exceeds the cost threshold provided in subdivision 2, the agency must notify, in writing, 
117.3 	the chairs and ranking minority members of the policy committees of the house of 
117.4 	representatives and the senate with jurisdiction over the subject matter of the proposed rule 
117.5 	within ten days of the determination.
117.6 	(b) If a committee of either the house of representatives or senate with jurisdiction over 
117.7 	the subject matter of the proposed rule or a portion of a rule that meets or exceeds the 
117.8 	threshold in subdivision 2 votes to advise an agency that the rule should not be adopted as 
117.9 	proposed, the agency may not adopt the rule unless the rule is approved by a law enacted 
117.10 	after the vote of the committee. Section 14.126, subdivision 2, applies to a vote of a 
117.11 	committee under this subdivision.
117.12 		Subd. 4.Severability. If the agency or an administrative law judge determines that part 
117.13 	of a proposed rule meets or exceeds the threshold provided in subdivision 2, but that a 
117.14 	severable portion of the proposed rule does not meet or exceed that threshold, the agency 
117.15 	may proceed to adopt the severable portions of the proposed rule regardless of whether a 
117.16 	legislative committee has voted under subdivision 3 to advise an agency that the rule should 
117.17 	not be adopted as proposed.

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

117.20 	Sec. 17. [14.129] IMPACT ANALYSIS OF PROPOSED RULE.
117.21 		Subdivision 1.Analysis. (a) Within 30 days of receipt of the notice required under 
117.22 	section 14.116, paragraph (b), a standing committee with jurisdiction over the subject matter 
117.23 	of a proposed rule may request the legislative auditor to conduct an impact analysis of the 
117.24 	proposed rule. The request must be sent in writing to the legislative auditor and the agency. 
117.25 	Upon receipt of the request, the agency may not proceed to adopt the proposed rule until it 
117.26 	has received a positive declaration from the requesting standing committee. Within 60 days 
117.27 	of receipt of a request, the legislative auditor shall convene a five-person peer review panel 
117.28 	to review the proposed rule. The advisory panel must be made up of individuals who have 
117.29 	not directly or indirectly been involved in work conducted or contracted by the agency and 
117.30 	who are not employed by the agency. The panel may receive written and oral comments 
117.31 	from the public during its review of the proposed rule. The panel must prepare a report that 
117.32 	includes a conclusion on whether the proposed rule:
117.33 	(1) is based on sound, reasonably available scientific, technical, economic, and other 
117.34 	information and rationale; and
118.1 	(2) if the proposed rule is more restrictive than a standard, limitation, or requirement 
118.2 	imposed by federal law or rule pertaining to the same subject matter, a justification based 
118.3 	on sound, reasonably available scientific, technical, economic, or other information and 
118.4 	rationale that the more stringent standard is necessary to protect the public's health, safety, 
118.5 	or welfare.
118.6 	(b) Within 150 days of being convened, the panel must submit its report to the chairs 
118.7 	and ranking minority members of the requesting committee and the legislative auditor. 
118.8 	Within five days of receipt of the panel's report, the requesting standing committee shall 
118.9 	send the report to the agency along with either:
118.10 	(1) a positive declaration that the agency may proceed with the proposed rule; or
118.11 	(2) a negative declaration that the agency may not proceed with the proposed rule in its 
118.12 	current form.
118.13 	(c) If the requesting standing committee issues a negative declaration to an agency under 
118.14 	paragraph (b), clause (2), the agency may not adopt the rule until the legislature adjourns 
118.15 	the annual legislative session that began after the issuance of the negative declaration.
118.16 		Subd. 2.Severability. If any one or more provision, sentence, clause, phrase, or word 
118.17 	in this section or the application thereof to any person or circumstance is found to be 
118.18 	unconstitutional, the same is hereby declared to be severable and the balance of this section 
118.19 	shall remain effective notwithstanding such unconstitutionality. The legislature hereby 
118.20 	declares that it would have passed this section and each provision, sentence, clause, phrase, 
118.21 	or word thereof irrespective of the fact that any one or more provision, sentence, clause, 
118.22 	phrase, or word be declared unconstitutional.

118.23 	Sec. 18. Minnesota Statutes 2016, section 14.131, is amended to read:
118.24 	14.131 STATEMENT OF NEED AND REASONABLENESS.
118.25 	By the date of the section 14.14, subdivision 1a, notice, the agency must prepare, review, 
118.26 	and make available for public review a statement of the need for and reasonableness of the 
118.27 	rule. The statement of need and reasonableness must be prepared under rules adopted by 
118.28 	the chief administrative law judge and must include a citation to the most specific statutory 
118.29 	authority for the rule and the following to the extent the agency, through reasonable effort, 
118.30 	can ascertain this information:
118.31 	(1) a description of the classes of persons who probably will be affected by the proposed 
118.32 	rule, including classes that will bear the costs of the proposed rule and classes that will 
118.33 	benefit from the proposed rule;
119.1 	(2) the probable costs to the agency and to any other agency of the implementation and 
119.2 	enforcement of the proposed rule and any anticipated effect on state revenues;
119.3 	(3) a determination of whether there are less costly methods or less intrusive methods 
119.4 	for achieving the purpose of the proposed rule;
119.5 	(4) a description of any alternative methods for achieving the purpose of the proposed 
119.6 	rule that were seriously considered by the agency and the reasons why they were rejected 
119.7 	in favor of the proposed rule;
119.8 	(5) the probable costs of complying with the proposed rule, including the portion of the 
119.9 	total costs that will be borne by identifiable categories of affected parties, such as separate 
119.10 	classes of governmental units, businesses, or individuals;
119.11 	(6) the probable costs or consequences of not adopting the proposed rule, including those 
119.12 	costs or consequences borne by identifiable categories of affected parties, such as separate 
119.13 	classes of government units, businesses, or individuals;
119.14 	(1) a description of the persons or classifications of persons who will probably be affected 
119.15 	by the proposed rule;
119.16 	(2) the probable costs of the rule to affected persons and the agency, including those 
119.17 	costs or consequences borne by identifiable categories of affected parties, such as separate 
119.18 	classes of government units, businesses, or individuals, and the probable benefits of adopting 
119.19 	the rule;
119.20 	(7) (3) an assessment of any differences between the proposed rule and existing or 
119.21 	proposed federal regulations standards and similar standards in relevant states bordering 
119.22 	Minnesota or within Environmental Protection Agency Region 5 and a specific analysis of 
119.23 	the need for and reasonableness of each difference; and
119.24 	(8) (4) an assessment of the cumulative effect of the rule with other federal and state 
119.25 	regulations related to the specific purpose of the rule. all rules adopted by the agency or any 
119.26 	other agency, and all federal regulations and local ordinances or regulations, related to the 
119.27 	specific purpose for which the rule is being adopted; and
119.28 	(5) the agency's findings and conclusions that support its determination that the proposed 
119.29 	rule is based on sound, reasonably available scientific, technical, economic, or other 
119.30 	information and rationale; and if the proposed rule is more restrictive than a standard, 
119.31 	limitation, or requirement imposed by federal law or rule pertaining to the same subject 
119.32 	matter, a justification based on sound, reasonably available scientific, technical, economic, 
120.1 	or other information and rationale that the more stringent standard is necessary to protect 
120.2 	the public's health, safety, or welfare.
120.3 	The statement must describe how the agency, in developing the rules, considered and 
120.4 	implemented the legislative policy supporting performance-based regulatory systems set 
120.5 	forth in section 14.002 in a cost-effective and timely manner.
120.6 	For purposes of clause (8) (4), "cumulative effect" means the impact that results from 
120.7 	incremental impact of the proposed rule in addition to other rules, regardless of what state 
120.8 	or federal agency has adopted the other rules. Cumulative effects can result from individually 
120.9 	minor but collectively significant rules adopted over a period of time.
120.10 	The statement must also describe the agency's efforts to provide additional notification 
120.11 	under section 14.14, subdivision 1a, to persons or classes of persons who may be affected 
120.12 	by the proposed rule or must explain why these efforts were not made.
120.13 	The statement must describe, with reasonable particularity, the scientific, technical, and 
120.14 	economic information that supports the proposed rule.
120.15 	The agency must consult with the commissioner of management and budget to help 
120.16 	evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local 
120.17 	government. The agency must send a copy of the statement of need and reasonableness to 
120.18 	the Legislative Reference Library no later than when the notice of hearing is mailed under 
120.19 	section 14.14, subdivision 1a sent.

120.20 	Sec. 19. Minnesota Statutes 2016, section 14.14, subdivision 1a, is amended to read:
120.21 		Subd. 1a.Notice of rule hearing. (a) Each agency shall maintain a list of all persons 
120.22 	who have registered with the agency for the purpose of receiving notice of rule proceedings. 
120.23 	Persons may register to receive notice of rule proceedings by submitting to the agency:
120.24 	(1) their electronic mail address; or
120.25 	(2) their name and United States mail address.
120.26 	The agency may inquire as to whether those persons on the list wish to remain on it and 
120.27 	may remove persons for whom there is a negative reply or no reply within 60 days. The 
120.28 	agency shall, at least 30 days before the date set for the hearing, give notice of its intention 
120.29 	to adopt hold a hearing on the proposed rules by United States mail or electronic mail to all 
120.30 	persons on its list who have registered with the agency under section 14.105, and by 
120.31 	publication in the State Register.
121.1 	The mailed notice must include either a copy of the proposed rule or an easily readable 
121.2 	and understandable description of its nature and effect and an announcement that a free 
121.3 	copy of the proposed rule is available on request from the agency. In addition, each agency 
121.4 	shall make reasonable efforts to notify persons or classes of persons who may be significantly 
121.5 	affected by the rule being proposed by giving notice of its intention in newsletters, 
121.6 	newspapers, or other publications, or through other means of communication. The notice 
121.7 	in the State Register must include the proposed rule or an amended rule in the form required 
121.8 	by the revisor under section 14.07, together with an easily readable and understandable 
121.9 	summary of the overall nature and effect of the proposed rule, a citation to the most specific 
121.10 	statutory authority for the proposed rule, a statement of the place, date, and time of the 
121.11 	public hearing, a statement that a free copy of the proposed rule and the statement of need 
121.12 	and reasonableness may be requested from the agency, a statement that persons may register 
121.13 	with the agency for the purpose of receiving notice of rule proceedings and notice that the 
121.14 	agency intends to adopt a rule, and other information required by law or rule. When an 
121.15 	entire rule is proposed to be repealed, the agency need only publish that fact, along with an 
121.16 	easily readable and understandable summary of the overall nature of the rules proposed for 
121.17 	repeal, and a citation to the rule to be repealed.
121.18 	The mailed notice of hearing must be the same as the notice published in the State 
121.19 	Register, except that the mailed notice may omit the text of the proposed rule if it includes 
121.20 	an announcement of where a copy of the proposed rule may be obtained.
121.21 	(b) The chief administrative law judge may authorize an agency to omit from the notice 
121.22 	of rule hearing the text of any proposed rule, the publication of which would be unduly 
121.23 	cumbersome, expensive, or otherwise inexpedient if:
121.24 	(1) knowledge of the rule is likely to be important to only a small class of persons;
121.25 	(2) the notice of rule hearing states that a free copy of the entire rule is available upon 
121.26 	request to the agency; and
121.27 	(3) the notice of rule hearing states in detail the specific subject matter of the omitted 
121.28 	rule, cites the statutory authority for the proposed rule, and details the proposed rule's purpose 
121.29 	and motivation.

121.30 	Sec. 20. Minnesota Statutes 2016, section 14.14, subdivision 2a, is amended to read:
121.31 		Subd. 2a.Hearing procedure. When a hearing is held on a proposed rule, it shall be 
121.32 	conducted by an administrative law judge assigned by the chief administrative law judge. 
121.33 	The administrative law judge shall ensure that all persons involved in the rule hearing are 
122.1 	treated fairly and impartially. The agency shall submit into the record the jurisdictional 
122.2 	documents, including the statement of need and reasonableness, comments and hearing 
122.3 	requests received, and any written exhibits in support of the proposed rule. The agency may 
122.4 	also present additional oral evidence. Interested persons may present written and oral 
122.5 	evidence. The administrative law judge shall allow questioning of agency representatives 
122.6 	or witnesses, or of interested persons making oral statements, in order to explain the purpose 
122.7 	or intended operation of a proposed rule, or a suggested modification, or for other purposes 
122.8 	if material to the evaluation or formulation of the proposed rule. The administrative law 
122.9 	judge may limit repetitive or immaterial oral statements and questioning.

122.10 	Sec. 21. Minnesota Statutes 2016, section 14.18, subdivision 1, is amended to read:
122.11 		Subdivision 1.Generally. Unless a later date is required by section 14.126 or other law 
122.12 	or is specified in the rule, a rule is effective after:
122.13 	(1) it has been subjected to all requirements described in sections 14.131 to 14.20and 
122.14 	five working days after;
122.15 	(2) the notice of adoption is published in the State Register unless a later date is required 
122.16 	by section 14.126 or other law or specified in the rule; and
122.17 	(3) it has been approved by a law enacted after publication of the notice of adoption.if 
122.18 	any of the following applies:
122.19 	(i) the rule is enacted without a specific authorization of rulemaking to enact rules to 
122.20 	implement a specific statute section;
122.21 	(ii) a sanction or penalty can be imposed for failure to comply with the rule; or
122.22 	(iii) the regulating agency has the authority to adjudicate a dispute with a regulated entity 
122.23 	about enforcement of or violation of the rule.
122.24 	If the rule adopted is the same as the proposed rule, publication may be made by 
122.25 	publishing notice in the State Register that the rule has been adopted as proposed and by 
122.26 	citing the prior publication. If the rule adopted differs from the proposed rule, the portions 
122.27 	of the adopted rule that differ from the proposed rule must be included in the notice of 
122.28 	adoption together with a citation to the prior State Register publication of the remainder of 
122.29 	the proposed rule. The nature of the modifications must be clear to a reasonable person 
122.30 	when the notice of adoption is considered together with the State Register publication of 
122.31 	the proposed rule, except that modifications may also be made that comply with the form 
122.32 	requirements of section 14.07, subdivision 7.
123.1 	If the agency omitted from the notice of proposed rule adoption the text of the proposed 
123.2 	rule, as permitted by section 14.14, subdivision 1a, paragraph (b), the chief administrative 
123.3 	law judge may provide that the notice of the adopted rule need not include the text of any 
123.4 	changes from the proposed rule. However, the notice of adoption must state in detail the 
123.5 	substance of the changes made from the proposed rule, and must state that a free copy of 
123.6 	the portion of the adopted rule that was the subject of the rulemaking proceeding, not 
123.7 	including any material adopted by reference as permitted by section 14.07, is available upon 
123.8 	request to the agency.

123.9 	Sec. 22. Minnesota Statutes 2016, section 14.19, is amended to read:
123.10 	14.19 DEADLINE TO COMPLETE RULEMAKING.
123.11 	Within 180 days after issuance of the administrative law judge's report or that of the 
123.12 	chief administrative law judge, the agency shall submit its notice of adoption, amendment, 
123.13 	or repeal to the State Register for publication. If the agency has not submitted its notice to 
123.14 	the State Register within 180 days, the rule is automatically withdrawn. The agency may 
123.15 	not adopt the withdrawn rules without again following the procedures of sections 14.05 to 
123.16 	14.28, with the exception of section 14.101, if the noncompliance is approved by the chief 
123.17 	administrative law judge. The agency shall report to the Legislative Coordinating 
123.18 	Commission, other appropriate committees of the legislature, and the governor its failure 
123.19 	to adopt rules and the reasons for that failure. The 180-day time limit of this section does 
123.20 	not include:
123.21 	(1) any days used for review by the chief administrative law judge or the commission 
123.22 	if the review is required by law; or
123.23 	(2) days during which the rule cannot be adopted, because of votes by legislative 
123.24 	committees under section 14.126; or.
123.25 	(3) days during which the rule cannot be adopted because approval of the legislature is 
123.26 	required under section 14.127.

123.27 	Sec. 23. Minnesota Statutes 2016, section 14.22, subdivision 1, is amended to read:
123.28 		Subdivision 1.Contents. (a) Unless an agency proceeds directly to a public hearing on 
123.29 	a proposed rule and gives the notice prescribed in section 14.14, subdivision 1a, the agency 
123.30 	shall give notice of its intention to adopt a rule without public hearing. The agency shall 
123.31 	give the notice required by this section, unless the agency gives notice of a hearing under 
123.32 	section 14.14 or a notice under section 14.389, subdivision 2. The agency shall give notice 
124.1 	must be given of its intention to adopt a rule by publication in the State Register and by 
124.2 	United States mail or electronic mail to persons who have registered their names with the 
124.3 	agency under section 14.14, subdivision 1a 14.105. The mailed notice must include either 
124.4 	a copy of the proposed rule or an easily readable and understandable description of its nature 
124.5 	and effect and an announcement that a free copy of the proposed rule is available on request 
124.6 	from the agency. In addition, each agency shall make reasonable efforts to notify persons 
124.7 	or classes of persons who may be significantly affected by the rule by giving notice of its 
124.8 	intention in newsletters, newspapers, or other publications, or through other means of 
124.9 	communication. The notice in the State Register must include the proposed rule or the
124.10 	amended rule in the form required by the revisor under section 14.07,; an easily readable 
124.11 	and understandable summary of the overall nature and effect of the proposed rule,; a citation 
124.12 	to the most specific statutory authority for the proposed rule,; a statement that a free copy 
124.13 	of the statement of need and reasonableness may be requested from the agency; a statement 
124.14 	that persons may register with the agency for the purpose of receiving to receive notice of 
124.15 	rule proceedings and notice that a rule has been submitted to the chief administrative law 
124.16 	judge,; and other information required by law or rule. When an entire rule is proposed to 
124.17 	be repealed, the notice need only state that fact, along with an easily readable and 
124.18 	understandable summary of the overall nature of the rules rule proposed for repeal, and a 
124.19 	citation to the rule to be repealed. The notice must include a statement advising the public:
124.20 	(1) that the public has at least 30 days in which to submit comment in support of or in 
124.21 	opposition to the proposed rule and that comment is encouraged;
124.22 	(2) that each comment should identify the portion part and subpart, if any, of the proposed 
124.23 	rule addressed, the reason for the comment, and any change proposed;
124.24 	(3) that the requester is encouraged to propose any change desired;
124.25 	(3) (4) that if 25 or more persons submit a written request for a public hearing within 
124.26 	the 30-day comment period, a public hearing will be held and the agency will use the process 
124.27 	under section 14.14;
124.28 	(4) (5) of the manner in which persons must request a public hearing on the proposed 
124.29 	rule, including the requirements contained in section 14.25 relating to a written request for 
124.30 	a public hearing; and
124.31 	(5) of the requirements contained in section 14.25 relating to a written request for a 
124.32 	public hearing, and that the requester is encouraged to propose any change desired;
124.33 	(6) that the agency may modify the proposed rule may be modified if the modifications 
124.34 	are supported by the data and views submitted; and.
125.1 	(7) that if a hearing is not required, notice of the date of submission of the proposed rule 
125.2 	to the chief administrative law judge for review will be mailed to any person requesting to 
125.3 	receive the notice.
125.4 	In connection with the statements required in clauses (1) and (3) (4), the notice must 
125.5 	also include the date on which the 30-day comment period ends. The mailed notice of intent 
125.6 	to adopt a rule must be the same as the notice published in the State Register, except that 
125.7 	the mailed notice may omit the text of the proposed rule if it includes an announcement of 
125.8 	where a copy of the proposed rule may be obtained.
125.9 	(b) The chief administrative law judge may authorize an agency to omit from the notice 
125.10 	of intent to adopt the text of any proposed rule, the publication of which would be unduly 
125.11 	cumbersome, expensive, or otherwise inexpedient if:
125.12 	(1) knowledge of the rule is likely to be important to only a small class of persons;
125.13 	(2) the notice of intent to adopt states that a free copy of the entire rule is available upon 
125.14 	request to the agency; and
125.15 	(3) the notice of intent to adopt states in detail the specific subject matter of the omitted 
125.16 	rule, cites the statutory authority for the proposed rule, and details the proposed rule's purpose 
125.17 	and motivation.

125.18 	Sec. 24. Minnesota Statutes 2016, section 14.23, is amended to read:
125.19 	14.23 STATEMENT OF NEED AND REASONABLENESS.
125.20 	By the date of the section 14.22 notice, the agency shall prepare a statement of need and 
125.21 	reasonableness, which must be available to the public. The statement of need and 
125.22 	reasonableness must include the analysis information required in section 14.131. The 
125.23 	statement must also describe the agency's efforts to provide additional notification under 
125.24 	section 14.22 to persons or classes of persons who may be affected by the proposed rules 
125.25 	or must explain why these efforts were not made. For at least 30 days following the notice, 
125.26 	the agency shall afford the public an opportunity to request a public hearing and to submit 
125.27 	data and views on the proposed rule in writing.
125.28 	The agency shall send a copy of the statement of need and reasonableness to the 
125.29 	Legislative Reference Library no later than when the notice of intent to adopt is mailed sent.

126.1 	Sec. 25. Minnesota Statutes 2016, section 14.25, subdivision 1, is amended to read:
126.2 		Subdivision 1.Requests for hearing. If, during the 30-day period allowed for comment
126.3 	under section 14.22, 25 or more persons submit to the agency a written request for a public 
126.4 	hearing of the proposed rule, the agency shall proceed under the provisions of sections 14.14
126.5 	to 14.20. The written request must include:
126.6 	(1) the name and address of the person requesting the public hearing; and
126.7 	(2) the portion or portions part or subpart, if any, of the rule to which the person objects 
126.8 	or a statement that the person opposes the entire rule. If not previously published under 
126.9 	section 14.22, subdivision 2, a notice of the public hearing must be published in the State 
126.10 	Register and mailed to those persons who submitted a written request for the public hearing. 
126.11 	Unless the agency has modified the proposed rule, the notice need not include the text of 
126.12 	the proposed rule but only a citation to the State Register pages where the text appears; and
126.13 	(3) the reasons for the objection to each portion of the rule identified.
126.14 	A written request for a public hearing that does not comply with the requirements of this 
126.15 	section is invalid and may not be counted by the agency for purposes of determining whether 
126.16 	a public hearing must be held. A written request for a public hearing is not invalid due to 
126.17 	failure of the request to correctly identify the portion of the rule to which the person objects 
126.18 	if the agency reasonably can determine which portion of the rule is the basis for the objection.

126.19 	Sec. 26. Minnesota Statutes 2016, section 14.26, is amended to read:
126.20 	14.26 ADOPTION OF PROPOSED RULE; SUBMISSION TO ADMINISTRATIVE 
126.21 	LAW JUDGE.
126.22 		Subdivision 1.Submission. If no hearing is required, the agency shall submit to an 
126.23 	administrative law judge assigned by the chief administrative law judge the proposed rule 
126.24 	and notice as published, the rule as adopted, any written comments received by the agency, 
126.25 	and a statement of need and reasonableness for the rule. The agency shall give notice to all 
126.26 	persons who requested to be informed that these materials have been submitted to the 
126.27 	administrative law judge. This notice must be given on the same day that the record is 
126.28 	submitted. If the proposed rule has been modified, the notice must state that fact, and must 
126.29 	also state that a free copy of the proposed rule, as modified, is available upon request from 
126.30 	the agency. The rule and these materials must be submitted to the administrative law judge 
126.31 	within 180 days of the day that the comment period for the rule is over or the rule is 
126.32 	automatically withdrawn. The agency may not adopt the withdrawn rules without again 
126.33 	following the procedures of sections 14.05 to 14.28, with the exception of section 14.101, 
127.1 	if the noncompliance is approved by the chief administrative law judge. The agency shall 
127.2 	report its failure to adopt the rules and the reasons for that failure to the Legislative 
127.3 	Coordinating Commission, other appropriate legislative committees, and the governor.
127.4 		Subd. 2.Resubmission. Even if the 180-day period expires while the administrative 
127.5 	law judge reviews the rule, if the administrative law judge rejects the rule, the agency may 
127.6 	resubmit it after taking corrective action. The resubmission must occur within 30 days of 
127.7 	when the agency receives written notice of the disapproval. If the rule is again disapproved, 
127.8 	the rule is withdrawn. An agency may resubmit at any time before the expiration of the 
127.9 	180-day period. If the agency withholds some of the proposed rule, it may not adopt the 
127.10 	withheld portion without again following the procedures of sections 14.14 to 14.28.
127.11 		Subd. 3.Review. (a) Within 14 days of receiving a submission under subdivision 1, the 
127.12 	administrative law judge shall approve or disapprove the rule as to its legality and its form 
127.13 	to the extent that the form relates to legality, including the issues of whether the rule if 
127.14 	modified is substantially different, as determined under section 14.05, subdivision 2, from 
127.15 	the rule as originally proposed, whether the agency has the authority to adopt the rule, and 
127.16 	whether the record demonstrates a rational basis for the need for and reasonableness of the 
127.17 	proposed rule. If the rule is approved, the administrative law judge shall promptly file four 
127.18 	paper copies or an electronic copy of the adopted rule in the Office of the Secretary of State. 
127.19 	The secretary of state shall forward one copy of each rule to the revisor of statutes, to the 
127.20 	agency, and to the governor. If the rule is disapproved, the administrative law judge shall 
127.21 	state in writing the reasons for the disapproval and make recommendations to overcome 
127.22 	the defects.
127.23 		Subd. 3b.Harmless error. The administrative law judge shall disregard any error or 
127.24 	defect in the proceeding due to the agency's failure to satisfy any procedural requirements 
127.25 	imposed by law or rule if the administrative law judge finds:
127.26 	(1) that the failure did not deprive any person or entity of an opportunity to participate 
127.27 	meaningfully in the rulemaking process; or
127.28 	(2) that the agency has taken corrective action to cure the error or defect so that the 
127.29 	failure did not deprive any person or entity of an opportunity to participate meaningfully 
127.30 	in the rulemaking process.
127.31 		Subd. 3c.Correction of defects. (b) (a) The written disapproval must be submitted to 
127.32 	the chief administrative law judge for approval. If the chief administrative law judge approves 
127.33 	of the findings of the administrative law judge, the chief administrative law judge shall send 
127.34 	the statement of the reasons for disapproval of the rule to the agency, the Legislative 
128.1 	Coordinating Commission, the house of representatives and senate policy committees with 
128.2 	primary jurisdiction over state governmental operations, and the revisor of statutes and 
128.3 	advise the agency and the revisor of statutes of actions that will correct the defects. The rule 
128.4 	may not be filed in the Office of the Secretary of State, nor be published, until the chief 
128.5 	administrative law judge determines that the defects have been corrected or, if applicable, 
128.6 	that the agency has satisfied the rule requirements for the adoption of a substantially different 
128.7 	rule.
128.8 	(b) The agency may resubmit the disapproved rule under paragraph (a) to the chief 
128.9 	administrative law judge after correcting the defects. If the 180-day period expires while 
128.10 	the chief administrative law judge is reviewing the rule, the agency may resubmit the rule 
128.11 	within 30 days of the date the agency received written notice of disapproval. In all other 
128.12 	cases, the agency may resubmit the rule at any time before the expiration of the 180-day 
128.13 	period in subdivision 1. If the resubmitted rule is disapproved by the chief administrative 
128.14 	law judge, the rule is withdrawn. If the agency does not resubmit a portion of the rule, it 
128.15 	may not adopt that portion of the rule without again following the procedures of sections 
128.16 	14.14 to 14.28.
128.17 		Subd. 3d.Need or reasonableness not established. (c) If the chief administrative law 
128.18 	judge determines that the need for or reasonableness of the rule has not been established, 
128.19 	and if the agency does not elect to follow the suggested actions of the chief administrative 
128.20 	law judge to correct that defect, then the agency shall submit the proposed rule to the 
128.21 	Legislative Coordinating Commission and to the house of representatives and senate policy 
128.22 	committees with primary jurisdiction over state governmental operations for advice and 
128.23 	comment. The agency may not adopt the rule until it has received and considered the advice 
128.24 	of the commission and committees. However, the agency need not wait for advice for more 
128.25 	than 60 days after the commission and committees have received the agency's submission.
128.26 	(d) The administrative law judge shall disregard any error or defect in the proceeding 
128.27 	due to the agency's failure to satisfy any procedural requirements imposed by law or rule 
128.28 	if the administrative law judge finds:
128.29 	(1) that the failure did not deprive any person or entity of an opportunity to participate 
128.30 	meaningfully in the rulemaking process; or
128.31 	(2) that the agency has taken corrective action to cure the error or defect so that the 
128.32 	failure did not deprive any person or entity of an opportunity to participate meaningfully 
128.33 	in the rulemaking process.
129.1 		Subd. 3a.Filing. If the rule is approved, the administrative law judge shall promptly 
129.2 	file four paper copies or an electronic copy of the adopted rule in the Office of the Secretary 
129.3 	of State. The secretary of state shall forward one copy of each rule to the revisor of statutes, 
129.4 	to the agency, and to the governor.
129.5 		Subd. 4.Costs. The Office of Administrative Hearings shall assess an agency for the 
129.6 	actual cost of processing rules under this section. Each agency shall include in its budget 
129.7 	money to pay the assessment. Receipts from the assessment must be deposited in the 
129.8 	administrative hearings account created in section 14.54.
129.9 		Subd. 5.Filing. If the rule is approved, the chief administrative law judge shall promptly 
129.10 	file four paper copies or an electronic copy of it in the Office of the Secretary of State. The 
129.11 	secretary of state shall forward one copy of the rule to the revisor of statutes, one copy to 
129.12 	the agency, and one copy to the governor.
129.13 		Subd. 6.Costs. The Office of Administrative Hearings shall assess an agency for the 
129.14 	actual cost of processing rules under this section. Each agency shall include in its budget 
129.15 	money to pay the assessment. Receipts from the assessment must be deposited in the 
129.16 	administrative hearings account created in section 14.54.

129.17 	Sec. 27. Minnesota Statutes 2016, section 14.27, is amended to read:
129.18 	14.27 PUBLICATION OF ADOPTED RULE; EFFECTIVE DATE.
129.19 	(a) Except as provided in paragraph (b), the rule is effective upon after publication of 
129.20 	the notice of adoption in the State Register in the same manner as provided for adopted 
129.21 	rules in section 14.18.
129.22 	(b) A rule is effective after publication of the notice of adoption in the State Register 
129.23 	and after approval by law in the same manner as provided for adopted rules in section 14.18, 
129.24 	if any of the following applies:
129.25 	(1) the rule is enacted without a specific authorization of rulemaking to enact rules to 
129.26 	implement a specific statute section;
129.27 	(2) a sanction or penalty can be imposed for failure to comply with the rule; or
129.28 	(3) the regulating agency has the authority to adjudicate a dispute with a regulated entity 
129.29 	about enforcement of or violation of the rule.

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

130.1 	Sec. 28. Minnesota Statutes 2016, section 14.365, is amended to read:
130.2 	14.365 OFFICIAL RULEMAKING RECORD.
130.3 	The agency shall maintain the official rulemaking record for every rule adopted under 
130.4 	sections 14.05 to 14.389 14.3895. The record must be available for public inspection. The 
130.5 	record required by this section constitutes the official and exclusive agency rulemaking 
130.6 	record with respect to agency action on or judicial review of the rule. The record must 
130.7 	contain:
130.8 	(1) copies of all publications in the State Register pertaining to the rule;
130.9 	(2) all written petitions, and all requests, submissions, or comments received by the 
130.10 	agency or the administrative law judge after publication of the notice of intent to adopt or 
130.11 	the notice of hearing in the State Register pertaining to the rule;
130.12 	(3) the statement of need and reasonableness for the rule;
130.13 	(4) any report prepared by the peer review panel pursuant to section 14.129;
130.14 	(4) (5) the official transcript of the hearing if one was held, or the tape recording of the 
130.15 	hearing if a transcript was not prepared;
130.16 	(5) (6) the report of the administrative law judge, if any;
130.17 	(6) (7) the rule in the form last submitted to the administrative law judge under sections 
130.18 	14.14 to 14.20 or first submitted to the administrative law judge under sections 14.22 to 
130.19 	14.28;
130.20 	(7) (8) the administrative law judge's written statement of required modifications and 
130.21 	of approval or disapproval by the chief administrative law judge, if any;
130.22 	(8) (9) any documents required by applicable rules of the Office of Administrative 
130.23 	Hearings;
130.24 	(9) (10) the agency's order adopting the rule;
130.25 	(10) (11) the revisor's certificate approving the form of the rule; and
130.26 	(11) (12) a copy of the adopted rule as filed with the secretary of state.

130.27 	Sec. 29. Minnesota Statutes 2016, section 14.381, subdivision 3, is amended to read:
130.28 		Subd. 3.Costs. The agency is liable for all Office of Administrative Hearings costs 
130.29 	associated with review of the petition. If the administrative law judge rules in favor of the 
130.30 	agency, the agency may recover all or a portion of the costs from the petitioner unless the 
131.1 	petitioner is entitled to proceed in forma pauperis under section 563.01 or the administrative 
131.2 	law judge determines that the petition was brought in good faith and that an assessment of 
131.3 	the costs would constitute an undue hardship for the petitioner. If an agency has reason to 
131.4 	believe it will prevail in the consideration of a petition, and that an effort to recover costs 
131.5 	from the petitioner will be unsuccessful, it may request the chief administrative law judge 
131.6 	to require the petitioner to provide bond or a deposit to the agency in an amount the chief 
131.7 	administrative law judge estimates will be the cost to the Office of Administrative Hearings 
131.8 	to review the petition.

131.9 	Sec. 30. Minnesota Statutes 2016, section 14.388, subdivision 1, is amended to read:
131.10 		Subdivision 1.Requirements. If an agency for good cause finds that the rulemaking 
131.11 	provisions of this chapter are unnecessary, impracticable, or contrary to the public interest 
131.12 	when adopting, amending, or repealing a rule to:
131.13 	(1) address a serious and immediate threat to the public health, safety, or welfare;
131.14 	(2) comply with a court order or a requirement in federal law in a manner that does not 
131.15 	allow for compliance with sections 14.14 to 14.28;
131.16 	(3) incorporate specific changes set forth in applicable statutes when no interpretation 
131.17 	of law is required; or
131.18 	(4) make changes that do not alter the sense, meaning, or effect of a rule,
131.19 	the agency may adopt, amend, or repeal the rule after satisfying the requirements of 
131.20 	subdivision 2 and section 14.386, paragraph (a), clauses (1) to (4). The agency shall 
131.21 	incorporate its findings and a brief statement of its supporting reasons in its order adopting, 
131.22 	amending, or repealing the rule.
131.23 	After considering the agency's statement and any comments received, the Office of 
131.24 	Administrative Hearings shall determine whether the agency has provided adequate 
131.25 	justification for its use of this section.
131.26 	Rules adopted, amended, or repealed under clauses clause (1) and (2) are effective for 
131.27 	a period of two years from the date of publication of the rule in the State Register.
131.28 	Rules adopted, amended, or repealed under clause (2), (3), or (4) are effective upon 
131.29 	publication in the State Register.

132.1 	Sec. 31. Minnesota Statutes 2016, section 14.388, subdivision 2, is amended to read:
132.2 		Subd. 2.Notice. An agency proposing to adopt, amend, or repeal a rule under this section 
132.3 	must give notice to the chairs and ranking minority members of the legislative policy and 
132.4 	budget committees with jurisdiction over the subject matter of the proposed rules and to 
132.5 	the Legislative Coordinating Commission, must give electronic notice of its intent in 
132.6 	accordance with section 16E.07, subdivision 3, and must give notice by United States mail 
132.7 	or electronic mail to persons who have registered their names with the agency under section 
132.8 	14.14, subdivision 1a. The notice must be given no later than the date the agency submits 
132.9 	the proposed rule to the Office of Administrative Hearings for review of its legality and 
132.10 	must include:
132.11 	(1) the proposed rule, amendment, or repeal;
132.12 	(2) an explanation of why the rule meets the requirements of the good cause exemption 
132.13 	under subdivision 1; and
132.14 	(3) a statement that interested parties have five business days after the date of the notice 
132.15 	to submit comments to the Office of Administrative Hearings.

132.16 	Sec. 32. Minnesota Statutes 2016, section 14.389, subdivision 3, is amended to read:
132.17 		Subd. 3.Adoption. (a) The agency may modify a proposed rule if the modifications do 
132.18 	not result in a substantially different rule, as defined in section 14.05, subdivision 2, 
132.19 	paragraphs (b) and (c). If the final rule is identical to the rule originally published in the 
132.20 	State Register, the agency must publish a notice of adoption in the State Register. If the 
132.21 	final rule is different from the rule originally published in the State Register, the agency 
132.22 	must publish a copy of the changes in the State Register. The agency must also file a copy 
132.23 	of the rule with the governor. The rule is effectiveupon publication in the State Register.
132.24 	(b) Except as provided in paragraph (c), the rule is effective upon publication in the 
132.25 	State Register.
132.26 	(c) The rule is effective upon publication of the notice of adoption if it has been approved 
132.27 	by a law enacted after publication of the notice of adoption, if any of the following applies:
132.28 	(1) the rule is enacted without a specific authorization of rulemaking to enact rules to 
132.29 	implement a specific statute section;
132.30 	(2) a sanction or penalty can be imposed for failure to comply with the rule; or
132.31 	(3)  the regulating agency has the authority to adjudicate a dispute with a regulated entity 
132.32 	about enforcement of or violation of the rule.

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

133.3 	Sec. 33. Minnesota Statutes 2016, section 14.44, is amended to read:
133.4 	14.44 DETERMINATION OF VALIDITY OF RULE.
133.5 	(a) The validity of any rule, or the validity of any agency policy, guideline, bulletin, 
133.6 	criterion, manual standard, or similar pronouncement that the petitioner believes is a rule 
133.7 	as defined in section 14.02, subdivision 4, may be determined upon the petition for a 
133.8 	declaratory judgment thereon, addressed to the Court of Appeals, when it appears that the 
133.9 	rule or pronouncement, or its threatened application, interferes with or impairs, or threatens 
133.10 	to interfere with or impair the legal rights or privileges of the petitioner. The agency shall 
133.11 	be made a party to the proceeding. The declaratory judgment may be rendered whether or 
133.12 	not the petitioner has first requested the agency to pass upon the validity of the rule in 
133.13 	question, whether or not the petitioner has petitioned the Office of Administrative Hearings 
133.14 	under section 14.381, and whether or not the agency has commenced an action against the 
133.15 	petitioner to enforce the rule.
133.16 	(b) If the subject of the petition is an agency policy, guideline, bulletin, criterion, manual 
133.17 	standard, or similar pronouncement, the agency must cease enforcement of the 
133.18 	pronouncement upon filing of the petition until the Court of Appeals rules on the matter. 
133.19 	The agency is liable for all costs associated with review of the petition. If the Court of 
133.20 	Appeals rules in favor of the agency, the agency may recover all or a portion of the cost 
133.21 	from the petitioner unless the petitioner is entitled to proceed in a forma pauperis under 
133.22 	section 563.01, or the court determines that the petition was brought in good faith or the 
133.23 	assessment of the costs would constitute an undue hardship for the petitioner.

133.24 	Sec. 34. Minnesota Statutes 2016, section 14.45, is amended to read:
133.25 	14.45 RULE DECLARED INVALID.
133.26 	In proceedings under section 14.44, the court shall declare the rule or agency policy, 
133.27 	guideline, bulletin, criterion, manual standard, or similar pronouncement invalid if it finds 
133.28 	that it violates constitutional provisions or exceeds the statutory authority of the agency or
133.29 	if the rule was adopted or the policy, guideline, bulletin, criterion, manual standard, or 
133.30 	similar pronouncement was improperly implemented without compliance with statutory 
133.31 	rulemaking procedures. Any party to proceedings under section 14.44, including the agency, 
133.32 	may appeal an adverse decision of the Court of Appeals to the Supreme Court as in other 
133.33 	civil cases.

134.1 	Sec. 35. Minnesota Statutes 2016, section 14.51, is amended to read:
134.2 	14.51 PROCEDURAL RULES.
134.3 	The chief administrative law judge shall adopt rules to govern: (1) the procedural conduct 
134.4 	of all hearings, relating to both rule adoption, amendment, suspension or repeal hearings, 
134.5 	contested case hearings, and workers' compensation hearings, and to govern the conduct of 
134.6 	voluntary mediation sessions for rulemaking and contested cases other than those within 
134.7 	the jurisdiction of the Bureau of Mediation Services; and (2) the review of rules adopted 
134.8 	without a public hearing. The chief administrative law judge may adopt rules to govern the 
134.9 	procedural conduct of other hearings conducted by the Office of Administrative Hearings. 
134.10 	The procedural rules shall be binding upon all agencies and shall supersede any other agency 
134.11 	procedural rules with which they may be in conflict. The procedural rules shall include in 
134.12 	addition to normal procedural matters provisions relating to the procedure to be followed 
134.13 	when the proposed final rule of an agency is substantially different, as determined under 
134.14 	section 14.05, subdivision 2, from that which was proposed. The procedural rules shall 
134.15 	establish a procedure whereby the proposed final rule of an agency shall be reviewed by 
134.16 	the chief administrative law judge on the issue of whether the proposed final rule of the 
134.17 	agency is substantially different than that which was proposed or failure of the agency to 
134.18 	meet the requirements of chapter 14. The rules must also provide: (1) an expedited procedure, 
134.19 	consistent with section 14.001, clauses (1) to (5), for the adoption of substantially different 
134.20 	rules by agencies; and (2) a procedure to allow an agency to receive prior binding approval 
134.21 	of its plan regarding the additional notice contemplated under sections 14.101, 14.131, 
134.22 	14.14, 14.22, and14.23, and 14.389. Upon the chief administrative law judge's own initiative 
134.23 	or upon written request of an interested party, the chief administrative law judge may issue 
134.24 	a subpoena for the attendance of a witness or the production of books, papers, records or 
134.25 	other documents as are material to any matter being heard by the Office of Administrative 
134.26 	Hearings. The subpoenas shall be enforceable through the district court in the district in 
134.27 	which the subpoena is issued.

134.28 	Sec. 36. Minnesota Statutes 2016, section 14.57, is amended to read:
134.29 	14.57 INITIATION; DECISION; AGREEMENT TO ARBITRATE.
134.30 	(a) An agency shall initiate a contested case proceeding when one is required by law. 
134.31 	Unless otherwise provided by law, An agency shall decide submit a contested case only to 
134.32 	the Office of Administrative Hearings for disposition in accordance with the contested case 
134.33 	procedures of the Administrative Procedure Act. Upon initiation of a contested case 
135.1 	proceeding, an agency may, by order, provide that the report or order of the administrative 
135.2 	law judge constitutes the final decision in the case.
135.3 	(b) As an alternative to initiating or continuing with a contested case proceeding, the 
135.4 	parties, subsequent to agency approval, may enter into a written agreement to submit the 
135.5 	issues raised to arbitration by an administrative law judge according to sections 572B.01
135.6 	to 572B.31.

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

135.9 	Sec. 37. [14.605] AFFIRMATIVE DEFENSE.
135.10 	In a contested case or any other action to enforce a rule or to sanction or penalize a 
135.11 	person for violation of a rule, a person shall have an affirmative defense if the person shows 
135.12 	by a preponderance of the evidence that the cost for the person to comply with the rule 
135.13 	exceeds $50,000.

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

135.16 	Sec. 38. MINNESOTA ADMINISTRATIVE RULES STATUS SYSTEM (MARSS) 
135.17 	WORKING GROUP.
 135.18 		Subdivision 1.Creation. The MARSS working group consists of the following nine 
135.19 	members:
135.20 	(1) the chief judge of the Office of Administrative Hearings, or a designee;
135.21 	(2) the secretary of state, or a designee;
135.22 	(3) a representative from the Interagency Rules Committee (IRC) appointed by the 
135.23 	committee;
135.24 	(4) a representative from each of the following agencies with rulemaking experience 
135.25 	appointed by the appropriate commissioner:
135.26 	(i) the Department of Health;
135.27 	(ii) the Minnesota Pollution Control Agency;
135.28 	(iii) the Department of Transportation; and
135.29 	(iv) the Department of Labor and Industry;
135.30 	(5) as designated by the IRC, a representative from a health-related board; and
136.1 	(6) as designated by the IRC, a representative from a non-health-related board.
136.2 		Subd. 2.MARSS description. The Minnesota Administrative Rules Status System 
136.3 	(MARSS) is a concept for a new software application. The application would be built and 
136.4 	maintained by the Revisor's Office. Executive branch agencies and others would upload 
136.5 	official rulemaking record documents to the system. The goal is to improve public access, 
136.6 	security, preservation, and transparency of state agencies' official rulemaking records through 
136.7 	the creation of a single online records system. The system would serve as a single Internet 
136.8 	location for the public to track rulemaking progress and access the official rulemaking 
136.9 	record. Agencies would fulfill their requirement to maintain and preserve the official 
136.10 	rulemaking record by submitting required documents to the revisor for inclusion in the 
136.11 	online records system.
136.12 		Subd. 3.Duties. The working group must report by February 1, 2018, to the chairs and 
136.13 	ranking minority members of the committees in the house of representatives and senate 
136.14 	with jurisdiction over policy and finance for the legislature. The report must identify the 
136.15 	functional and nonfunctional requirements of the MARSS system. The working group must 
136.16 	define a funding mechanism to share the cost to build and maintain the MARSS system 
136.17 	among state agencies and departments.
136.18 		Subd. 4.Administration provisions. (a) The revisor of statutes or the revisor's designee 
136.19 	must convene the initial meeting of the working group by August 1, 2017. Upon request of 
136.20 	the working group, the revisor must provide meeting space and administrative services for 
136.21 	the group.
136.22 	(b) The working group must elect a chair from among its members at the first meeting.
136.23 	(c) Members serve without compensation and without reimbursement for expenses.
136.24 	(d) The working group expires on February 1, 2018, or upon submission of documents 
136.25 	fulfilling its duties, whichever is earlier.
136.26 		Subd. 5.Deadline for appointments and designations. The appointments and 
136.27 	designations authorized by this section must be completed by July 1, 2017.

136.28 	Sec. 39. REVISOR'S INSTRUCTION.
 136.29 	By January 15, 2018, the revisor of statutes shall present a bill to the legislature to make 
136.30 	the conforming statutory changes to incorporate changes in this article to the contested case 
136.31 	procedures under Minnesota Statutes, section 14.57.

137.1 	Sec. 40. REPEALER.
 137.2 	Minnesota Statutes 2016, section 14.05, subdivision 5, is repealed.

137.3 	Sec. 41. EFFECTIVE DATE; APPLICATION.
 137.4 	Except where otherwise provided, this article is effective August 1, 2017, and applies 
137.5 	to rules for which a notice of hearing under Minnesota Statutes, section 14.14; a notice of 
137.6 	intent to adopt under Minnesota Statutes, section 14.22; or a dual notice under Minnesota 
137.7 	Statutes, section 14.225, is published in the State Register on or after that date.

137.8 	ARTICLE 5
137.9 	MILITARY AFFAIRS AND VETERANS AFFAIRS

137.10 	Section 1. Minnesota Statutes 2016, section 190.19, subdivision 2, is amended to read:
137.11 		Subd. 2.Uses. (a) Money appropriated from the Minnesota "Support Our Troops" account 
137.12 	to the Department of Military Affairs may be used for:
137.13 	(1) grants directly to eligible individuals;
137.14 	(2) grants to one or more eligible foundations for the purpose of making grants to eligible 
137.15 	individuals, as provided in this section;
137.16 	(3) veterans' services; or
137.17 	(4) grants to family readiness groups chartered by the adjutant general.
137.18 	(b) As used in paragraph (a), the term "eligible individual" includes any person who is:
137.19 	(1) a member in good standing of the Minnesota National Guard or a reserve unit based 
137.20 	in Minnesota who has been called to active service as defined in section 190.05, subdivision 
137.21 	5;
137.22 	(2) a Minnesota resident who is a member of a military reserve unit not based in 
137.23 	Minnesota, if the member is called to active service as defined in section 190.05, subdivision 
137.24 	5;
137.25 	(3) any other Minnesota resident performing active service for any branch of the military 
137.26 	of the United States;
137.27 	(4) a person who honorably served in one of the capacities listed in clause (1), (2), or 
137.28 	(3) who has current financial needs directly related to that service; and
137.29 	(5) a member of the immediate family of an individual identified in clause (1), (2), (3), 
137.30 	or (4). For purposes of this clause, "immediate family" means the individual's spouse and 
138.1 	minor children and, if they are dependents of the member of the military, the member's 
138.2 	parents, grandparents, siblings, stepchildren, and adult children.
138.3 	(c) As used in paragraph (a), the term "eligible foundation" includes any organization 
138.4 	that:
138.5 	(1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code;
138.6 	(2) has articles of incorporation under chapter 317A specifying the purpose of the 
138.7 	organization as including the provision of financial assistance to members of the Minnesota 
138.8 	National Guard and other United States armed forces reserves and their families and 
138.9 	survivors; and
138.10 	(3) agrees in writing to distribute any grant money received from the adjutant general 
138.11 	under this section to eligible individuals as defined in this section and in accordance with 
138.12 	any written policies and rules the adjutant general may impose as conditions of the grant to 
138.13 	the foundation.
138.14 	(d) The maximum grant awarded to an eligible individual under paragraph (a) in a 
138.15 	calendar year with funds from the Minnesota "Support Our Troops" account, either through 
138.16 	an eligible institution or directly from the adjutant general, may not exceed $2,000 $4,000.

138.17 	Sec. 2. Minnesota Statutes 2016, section 190.19, subdivision 2a, is amended to read:
138.18 		Subd. 2a.Uses; veterans. (a) Money appropriated to the Department of Veterans Affairs 
138.19 	from the Minnesota "Support Our Troops" account may be used for:
138.20 	(1) grants to veterans service organizations;
138.21 	(2) outreach to underserved veterans;
138.22 	(3) providing services and programs for veterans and their families;
138.23 	(4) transfers to the vehicle services account for Gold Star license plates under section 
138.24 	168.1253;
138.25 	(5) grants of up to $100,000 to any organization approved by the commissioner of 
138.26 	veterans affairs for the purpose of supporting and improving the lives of veterans and their 
138.27 	families; and
138.28 	(6) grants to an eligible foundation.; and
138.29 	(7) the agency's uncompensated burial costs for eligible dependents to whom the 
138.30 	commissioner grants a no-fee or reduced-fee burial in the state's veteran cemeteries pursuant 
138.31 	to section 197.236, subdivision 9, paragraph (b).
139.1 	(b) For purposes of this subdivision, "eligible foundation" includes any organization 
139.2 	that:
139.3 	(1) is a tax-exempt organization under section 501(c) of the Internal Revenue Code; and
139.4 	(2) is a nonprofit corporation under chapter 317A and the organization's articles of 
139.5 	incorporation specify that a purpose of the organization includes: (i) providing assistance 
139.6 	to veterans and their families; or (ii) enhancing the lives of veterans and their families.

139.7 	Sec. 3. Minnesota Statutes 2016, section 196.05, subdivision 1, is amended to read:
139.8 		Subdivision 1.General duties. The commissioner shall:
139.9 	(1) act as the agent of a resident of the state having a claim against the United States for 
139.10 	benefits arising out of or by reason of service in the armed forces and prosecute the claim 
139.11 	without charge;
139.12 	(2) act as custodian of veterans' bonus records;
139.13 	(3) administer the laws relating to the providing of bronze flag holders at veterans' graves 
139.14 	for memorial purposes;
139.15 	(4) administer the laws relating to recreational or rest camps for veterans so far as 
139.16 	applicable to state agencies;
139.17 	(5) administer the state soldiers' assistance fund and veterans' relief fund and other funds 
139.18 	appropriated for the payment of bonuses or other benefits to veterans or for the rehabilitation 
139.19 	of veterans;
139.20 	(6) cooperate with national, state, county, municipal, and private social agencies in 
139.21 	securing to veterans and their dependents the benefits provided by national, state, and county 
139.22 	laws, municipal ordinances, or public and private social agencies;
139.23 	(7) provide necessary assistance where other adequate aid is not available to the dependent 
139.24 	family of a veteran while the veteran is hospitalized and after the veteran is released for as 
139.25 	long a period as is necessary as determined by the commissioner;
139.26 	(8) cooperate with United States governmental agencies providing compensation, 
139.27 	pensions, insurance, or other benefits provided by federal law, by supplementing the benefits 
139.28 	prescribed therein, when conditions in an individual case make it necessary;
139.29 	(9) assist dependent family members of military personnel who are called from reserve 
139.30 	status to extended federal active duty during a time of war or national emergency through 
139.31 	the state soldiers' assistance fund provided by section 197.03;
140.1 	(10) exercise other powers as may be authorized and necessary to carry out the provisions 
140.2 	of this chapter and chapter 197, consistent with that chapter; and
140.3 	(11) provide information, referral, and counseling services to those veterans who may 
140.4 	have suffered adverse health conditions as a result of possible exposure to chemical agents.; 
140.5 	and
140.6 	(12) in coordination with the Minnesota Association of County Veterans Service Officers, 
140.7 	develop a written disclosure statement for use by private providers of veterans benefits 
140.8 	services as required under section 197.6091. At a minimum, the written disclosure statement 
140.9 	shall include a signature line, contact information for the department, and a statement that 
140.10 	veterans benefits services are offered at no cost by federally chartered veterans service 
140.11 	organizations and by county veterans service officers.

140.12 	Sec. 4. Minnesota Statutes 2016, section 197.236, subdivision 9, is amended to read:
140.13 		Subd. 9.Burial fees. (a) The commissioner of veterans affairs shall establish a fee 
140.14 	schedule, which may be adjusted from time to time, for the interment of eligible spouses 
140.15 	and dependent children. The fees shall cover as nearly as practicable the actual costs of 
140.16 	interment, excluding the value of the plot.
140.17 	(b) Upon application, the commissioner may waive or reduce the burial fee in the case 
140.18 	of for an indigent eligible person. The commissioner shall develop a policy, eligibility 
140.19 	standards, and application form for requests to waive or reduce the burial fee to indigent 
140.20 	eligible applicants.
140.21 	(c) No plot or interment fees may be charged for the burial of service members who die 
140.22 	on active duty or eligible veterans, as defined in United States Code, title 38, section 101, 
140.23 	paragraph (2).

140.24 	Sec. 5. [197.6091] VETERANS BENEFITS SERVICES; DISCLOSURE 
140.25 	REQUIREMENTS.
140.26 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
140.27 	the meanings given.
140.28 	(b)(1) "Advertising" or "advertisement" means any of the following:
140.29 	(i) any written or printed communication made for the purpose of soliciting business for 
140.30 	veterans benefits appeal services, including but not limited to a brochure, letter, pamphlet, 
140.31 	newspaper, telephone listing, periodical, or other writing;
141.1 	(ii) any directory listing caused or permitted by a person and made available by that 
141.2 	person indicating that veterans benefits appeal services are being offered; or
141.3 	(iii) any radio, television, computer network, or similar airwave or electronic transmission 
141.4 	that solicits business for or promotes a person offering veterans benefits appeal services.
141.5 	(2) "Advertising" or "advertisement" does not include any of the following:
141.6 	(i) any printing or writing used on buildings, uniforms, or badges, where the purpose of 
141.7 	the writing is for identification; or
141.8 	(ii) any printing or writing in a memorandum or other communication used in the ordinary 
141.9 	course of business where the sole purpose of the writing is other than soliciting business 
141.10 	for veterans benefits appeal services.
141.11 	(c) "Veterans benefits appeal services" means services that a veteran might reasonably 
141.12 	require in order to appeal a denial of federal or state veterans benefits, including but not 
141.13 	limited to denials of disability, limited income, home loan, insurance, education and training, 
141.14 	burial and memorial, and dependent and survivor benefits.
141.15 	(d) "Veterans benefits services" means services that a veteran or a family member of a 
141.16 	veteran might reasonably use in order to obtain federal, state, or  county veterans benefits.
141.17 	(e) "Written disclosure statement" means the written disclosure statement developed by 
141.18 	the commissioner of veterans affairs pursuant to section 196.05, subdivision 1.
141.19 		Subd. 2.Advertising disclosure requirements. A person advertising veterans benefits 
141.20 	appeal services must conspicuously disclose in the advertisement, in similar type size or 
141.21 	voice-over, that veterans benefits appeal services are also offered at no cost by county 
141.22 	veterans service officers under sections 197.603 and 197.604.
141.23 		Subd. 3.Veterans benefits services disclosure requirements. A person who provides 
141.24 	veterans benefits services in exchange for compensation shall provide a written disclosure 
141.25 	statement to each client or prospective client. Before a person enters into an agreement to 
141.26 	provide veterans benefits services or accepts money or any other thing of value for the 
141.27 	provision of veterans benefits services, the person must obtain the signature of the client 
141.28 	on a written disclosure statement containing an attestation by the client that the client has 
141.29 	read and understands the written disclosure statement.
141.30 		Subd. 4.Violations; penalties. A person who fails to comply with this section is subject 
141.31 	to a civil penalty not to exceed $1,000 for each violation. Civil penalties shall be assessed 
141.32 	by the district court in an action initiated by the attorney general. For the purposes of 
141.33 	computing the amount of each civil penalty, each day of a continuing violation constitutes 
142.1 	a separate violation. Additionally, the attorney general may accept a civil penalty as 
142.2 	determined by the attorney general in settlement of an investigation of a violation of this 
142.3 	section regardless of whether an action has been filed under this section. Any civil penalty 
142.4 	recovered shall be deposited in the Support Our Troops account established under section 
142.5 	190.19.
142.6 		Subd. 5.Nonapplicability. This section does not apply to the owner or personnel of any 
142.7 	medium in which an advertisement appears or through which an advertisement is 
142.8 	disseminated.

142.9 	Sec. 6. Minnesota Statutes 2016, section 197.791, subdivision 2, is amended to read:
142.10 		Subd. 2.Program established. The Minnesota GI Bill program is established to provide 
142.11 	postsecondary educational assistance, apprenticeship and on-the-job training benefits, and 
142.12 	other professional and educational benefits to eligible Minnesota veterans and to the children 
142.13 	and spouses of deceased and severely disabled Minnesota veterans.
142.14 	The commissioner, in cooperation with eligible postsecondary educational institutions, 
142.15 	shall administer the program for the purpose of providing postsecondary educational 
142.16 	assistance to eligible persons in accordance with this section. Each public postsecondary 
142.17 	educational institution in the state must participate in the program and each private 
142.18 	postsecondary educational institution in the state is encouraged to participate in the program. 
142.19 	Any participating private institution may suspend or terminate its participation in the program 
142.20 	at the end of any semester or other academic term.

142.21 	Sec. 7. Minnesota Statutes 2016, section 197.791, subdivision 3, is amended to read:
142.22 		Subd. 3.Duties; responsibilities. (a) The commissioner shall establish policies and 
142.23 	procedures including, but not limited to, procedures for student application record keeping, 
142.24 	information sharing, payment of educational assistance benefits under subdivision 5, payment 
142.25 	of apprenticeship or on-the-job training benefits under subdivision 5a, payment of other 
142.26 	educational or professional benefits under subdivision 5, and other procedures the 
142.27 	commissioner considers appropriate and necessary for effective and efficient administration 
142.28 	of the program established in this section.
142.29 	(b) The commissioner may delegate part or all of the administrative procedures for the 
142.30 	program to responsible representatives of participating eligible institutions. The commissioner 
142.31 	may execute an interagency agreement with the Minnesota Office of Higher Education for 
142.32 	services the commissioner determines necessary to administer the program.

143.1 	Sec. 8. Minnesota Statutes 2016, section 197.791, subdivision 4, is amended to read:
143.2 		Subd. 4.Eligibility. (a) A person is eligible for educational assistance under this section
143.3 	subdivisions 5 and 5a if:
143.4 	(1) the person is:
143.5 	(i) a veteran who is serving or has served honorably in any branch or unit of the United 
143.6 	States armed forces at any time;
143.7 	(ii) a nonveteran who has served honorably for a total of five years or more cumulatively 
143.8 	as a member of the Minnesota National Guard or any other active or reserve component of 
143.9 	the United States armed forces, and any part of that service occurred on or after September 
143.10 	11, 2001;
143.11 	(iii) the surviving spouse or child of a person who has served in the military and who 
143.12 	has died as a direct result of that military service, only if the surviving spouse or child is 
143.13 	eligible to receive federal education benefits under United States Code, title 38, chapter 33, 
143.14 	as amended, or United States Code, title 38, chapter 35, as amended; or
143.15 	(iv) the spouse or child of a person who has served in the military at any time and who 
143.16 	has a total and permanent service-connected disability as rated by the United States Veterans 
143.17 	Administration, only if the spouse or child is eligible to receive federal education benefits 
143.18 	under United States Code, title 38, chapter 33, as amended, or United States Code, title 38, 
143.19 	chapter 35, as amended; and
143.20 	(2) the person receiving the educational assistance is a Minnesota resident, as defined 
143.21 	in section 136A.101, subdivision 8; and
143.22 	(3) the person receiving the educational assistance:
143.23 	(i) is an undergraduate or graduate student at an eligible institution;
143.24 	(ii) is maintaining satisfactory academic progress as defined by the institution for students 
143.25 	participating in federal Title IV programs;
143.26 	(iii) is enrolled in an education program leading to a certificate, diploma, or degree at 
143.27 	an eligible institution;
143.28 	(iv) has applied for educational assistance under this section prior to the end of the 
143.29 	academic term for which the assistance is being requested;
143.30 	(v) is in compliance with child support payment requirements under section 136A.121, 
143.31 	subdivision 2, clause (5); and
144.1 	(vi) has completed the Free Application for Federal Student Aid (FAFSA).
144.2 	(b) A person's eligibility terminates when the person becomes eligible for benefits under 
144.3 	section 135A.52.
144.4 	(c) To determine eligibility, the commissioner may require official documentation, 
144.5 	including the person's federal form DD-214 or other official military discharge papers; 
144.6 	correspondence from the United States Veterans Administration; birth certificate; marriage 
144.7 	certificate; proof of enrollment at an eligible institution; signed affidavits; proof of residency; 
144.8 	proof of identity; or any other official documentation the commissioner considers necessary 
144.9 	to determine eligibility.
144.10 	(d) The commissioner may deny eligibility or terminate benefits under this section to 
144.11 	any person who has not provided sufficient documentation to determine eligibility for the 
144.12 	program. An applicant may appeal the commissioner's eligibility determination or termination 
144.13 	of benefits in writing to the commissioner at any time. The commissioner must rule on any 
144.14 	application or appeal within 30 days of receipt of all documentation that the commissioner 
144.15 	requires. The decision of the commissioner regarding an appeal is final. However, an 
144.16 	applicant whose appeal of an eligibility determination has been rejected by the commissioner 
144.17 	may submit an additional appeal of that determination in writing to the commissioner at 
144.18 	any time that the applicant is able to provide substantively significant additional information 
144.19 	regarding the applicant's eligibility for the program. An approval of an applicant's eligibility 
144.20 	by the commissioner following an appeal by the applicant is not retroactively effective for 
144.21 	more than one year or the semester of the person's original application, whichever is later.
144.22 	(e) Upon receiving an application with insufficient documentation to determine eligibility, 
144.23 	the commissioner must notify the applicant within 30 days of receipt of the application that 
144.24 	the application is being suspended pending receipt by the commissioner of sufficient 
144.25 	documentation from the applicant to determine eligibility.

144.26 	Sec. 9. Minnesota Statutes 2016, section 197.791, subdivision 5, is amended to read:
144.27 		Subd. 5.Benefit Educational assistance amount. (a) On approval by the commissioner 
144.28 	of eligibility for the program, the applicant shall be awarded, on a funds-available basis, 
144.29 	the educational assistance under the program for use at any time according to program rules 
144.30 	at any eligible institution.
144.31 	(b) The amount of educational assistance in any semester or term for an eligible person 
144.32 	must be determined by subtracting from the eligible person's cost of attendance the amount 
144.33 	the person received or was eligible to receive in that semester or term from:
145.1 	(1) the federal Pell Grant;
145.2 	(2) the state grant program under section 136A.121; and
145.3 	(3) any federal military or veterans educational benefits including but not limited to the 
145.4 	Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, vocational 
145.5 	rehabilitation benefits, and any other federal benefits associated with the person's status as 
145.6 	a veteran, except veterans disability payments from the United States Veterans Administration 
145.7 	and payments made under the Veterans Retraining Assistance Program (VRAP).
145.8 	(c) The amount of educational assistance for any eligible person who is a full-time 
145.9 	student must not exceed the following:
145.10 	(1) $1,000 per semester or term of enrollment;
145.11 	(2) (1) $3,000 per state fiscal year; and
145.12 	(3) (2) $10,000 in a lifetime.
145.13 	(d) A person eligible under this subdivision may use the benefit amounts for the following 
145.14 	purposes:
145.15 	(1) licensing or certification tests, the successful completion of which demonstrates an 
145.16 	individual's possession of the knowledge or skill required to enter into, maintain, or advance 
145.17 	in employment in a predetermined and identified vocation or profession, provided that the 
145.18 	tests and the licensing or credentialing organizations or entities that offer the tests are 
145.19 	approved by the commissioner;
145.20 	(2) tests for admission to institutions of higher learning or graduate schools;
145.21 	(3) national tests providing an opportunity for course credit at institutions of higher 
145.22 	learning;
145.23 	(4) a preparatory course for a test that is required or used for admission to an institution 
145.24 	of higher education or a graduate program; and
145.25 	(5) any fee associated with the pursuit of a professional or educational objective specified 
145.26 	in clauses (1) to (4).
145.27 	(e) If an eligible person receives benefits under subdivision 5, the eligible person's 
145.28 	aggregate benefits under this subdivision and subdivision 5 must not exceed $10,000 in the 
145.29 	eligible person's lifetime.
146.1 	(f) If an eligible person receives benefits under subdivision 5a, the eligible person's 
146.2 	aggregate benefits under this subdivision and subdivision 5a must not exceed $10,000 in 
146.3 	the eligible person's lifetime.
146.4 	For a part-time student, the amount of educational assistance must not exceed $500 per 
146.5 	semester or term of enrollment. For the purpose of this paragraph, a part-time undergraduate 
146.6 	student is a student taking fewer than 12 credits or the equivalent for a semester or term of 
146.7 	enrollment and a part-time graduate student is a student considered part time by the eligible 
146.8 	institution the graduate student is attending. The minimum award for undergraduate and 
146.9 	graduate students is $50 per term.

146.10 	Sec. 10. Minnesota Statutes 2016, section 197.791, subdivision 5a, is amended to read:
146.11 		Subd. 5a.Apprenticeship and on-the-job training. (a) The commissioner, in 
146.12 	consultation with the commissioners of employment and economic development and labor 
146.13 	and industry, shall develop and implement an apprenticeship and on-the-job training program 
146.14 	to administer a portion of the Minnesota GI Bill program to pay benefit amounts to eligible 
146.15 	applicants persons, as provided in this subdivision.
146.16 	(b) An "eligible employer" means an employer operating a qualifying apprenticeship or 
146.17 	on-the-job training program that has been approved by the commissioner.
146.18 	(c) A person is eligible for apprenticeship and on-the-job training assistance under this 
146.19 	subdivision if the person meets the criteria established under subdivision 4, paragraphs
146.20 	paragraph (a), clause (1), and (c) to (e). The commissioner may determine eligibility as 
146.21 	provided in subdivision 4, paragraph (c), and may deny or terminate benefits as prescribed 
146.22 	under subdivision 4, paragraphs (d) and (e). The amount of assistance paid to or on behalf 
146.23 	of an eligible individual under this subdivision must not exceed the following:
146.24 	(1) $2,000 $3,000 per fiscal year for apprenticeship expenses;
146.25 	(2) $2,000 $3,000 per fiscal year for on-the-job training;
146.26 	(3) $1,000 for a job placement credit payable to an eligible employer upon hiring and 
146.27 	completion of six consecutive months' employment of a person receiving assistance under 
146.28 	this subdivision; and
146.29 	(4) $1,000 for a job placement credit payable to an eligible employer after a person 
146.30 	receiving assistance under this subdivision has been employed by the eligible employer for 
146.31 	at least 12 consecutive months as a full-time employee.
147.1 	No more than $3,000 $5,000 in aggregate benefits under this paragraph may be paid to or 
147.2 	on behalf of an individual in one fiscal year, and not more than $9,000 $10,000 in aggregate 
147.3 	benefits under this paragraph may be paid to or on behalf of an individual over any period 
147.4 	of time.
147.5 	(d) Assistance for apprenticeship expenses and on-the-job training is available for 
147.6 	qualifying programs, which must, at a minimum, meet the following criteria:
147.7 	(1) the training must be with an eligible employer;
147.8 	(2) the training must be documented and reported;
147.9 	(3) the training must reasonably be expected to lead to an entry-level position; and
147.10 	(4) the position must require at least six months of training to become fully trained.

147.11 	ARTICLE 6
147.12 	CAMPAIGN FINANCE AND ELECTIONS

147.13 	Section 1. Minnesota Statutes 2016, section 10A.01, subdivision 12, is amended to read:
147.14 		Subd. 12.Depository. "Depository" means a bank, savings association, or credit union 
147.15 	organized under federal or state law and transacting business within this state. The 
147.16 	depositories of a political committee or political fund include any depository in which the 
147.17 	committee or fund has a savings, checking, or similar account, or purchases a money market 
147.18 	certificate or certificate of deposit.

147.19 	Sec. 2. Minnesota Statutes 2016, section 10A.01, subdivision 16, is amended to read:
147.20 		Subd. 16.Election cycle. "Election cycle" means the period from January 1 following 
147.21 	a general election for an office to December 31 following the next general election for that 
147.22 	office, except that "election cycle" for a special election means the period from the date the 
147.23 	special election writ is issued to 6015 days after the special election is held. For a regular 
147.24 	election, the period from January 1 of the year prior to an election year through December 
147.25 	31 of the election year is the "election segment" of the election cycle. Each other two-year 
147.26 	segment of an election cycle is a "nonelection segment" of the election cycle. An election 
147.27 	cycle that consists of two calendar years has only an election segment. The election segment 
147.28 	of a special election cycle includes the entire special election cycle.

147.29 	EFFECTIVE DATE. This section is effective the day following final enactment and 
147.30 	applies to any special election cycle that starts on or after that date.

148.1 	Sec. 3. Minnesota Statutes 2016, section 10A.01, subdivision 26, is amended to read:
148.2 		Subd. 26.Noncampaign disbursement. "Noncampaign disbursement" means a purchase 
148.3 	or payment of money or anything of value made, or an advance of credit incurred, or a 
148.4 	donation in kind received, by a principal campaign committee for any of the following 
148.5 	purposes:
148.6 	(1) payment for accounting and legal services;
148.7 	(2) return of a contribution to the source;
148.8 	(3) repayment of a loan made to the principal campaign committee by that committee;
148.9 	(4) return of a public subsidy;
148.10 	(5) (4) payment for food, beverages, and necessary utensils and supplies, entertainment, 
148.11 	and facility rental for a fund-raising event;
148.12 	(6) (5) services for a constituent by a member of the legislature or a constitutional officer 
148.13 	in the executive branch, including the costs of preparing and distributing a suggestion or 
148.14 	idea solicitation to constituents, performed from the beginning of the term of office to 
148.15 	adjournment sine die of the legislature in the election year for the office held, and half the 
148.16 	cost of services for a constituent by a member of the legislature or a constitutional officer 
148.17 	in the executive branch performed from adjournment sine die to 60 days after adjournment 
148.18 	sine die;
148.19 	(7) (6) payment for food and beverages consumed by a candidate or volunteers while 
148.20 	they are engaged in campaign activities;
148.21 	(8) (7) payment for food or a beverage consumed while attending a reception or meeting 
148.22 	directly related to legislative duties;
148.23 	(9) (8) payment of expenses incurred by elected or appointed leaders of a legislative 
148.24 	caucus in carrying out their leadership responsibilities;
148.25 	(10) (9) payment by a principal campaign committee of the candidate's expenses for 
148.26 	serving in public office, other than for personal uses;
148.27 	(11) (10) costs of child care for the candidate's children when campaigning;
148.28 	(12) (11) fees paid to attend a campaign school;
148.29 	(13) (12) costs of a postelection party during the election year when a candidate's name 
148.30 	will no longer appear on a ballot or the general election is concluded, whichever occurs 
148.31 	first;
149.1 	(14) (13) interest on loans paid by a principal campaign committee on outstanding loans;
149.2 	(15) (14) filing fees;
149.3 	(16) (15) post-general election holiday or seasonal cards, thank-you notes, or 
149.4 	advertisements in the news media mailed or published prior to the end of the election cycle;
149.5 	(17) (16) the cost of campaign material purchased to replace defective campaign material, 
149.6 	if the defective material is destroyed without being used;
149.7 	(18) (17) contributions to a party unit;
149.8 	(19) (18) payments for funeral gifts or memorials;
149.9 	(20) (19) the cost of a magnet less than six inches in diameter containing legislator 
149.10 	contact information and distributed to constituents;
149.11 	(21) (20) costs associated with a candidate attending a political party state or national 
149.12 	convention in this state;
149.13 	(22) (21) other purchases or payments specified in board rules or advisory opinions as 
149.14 	being for any purpose other than to influence the nomination or election of a candidate or 
149.15 	to promote or defeat a ballot question; and
149.16 	(23) (22) costs paid to a third party for processing contributions made by a credit card, 
149.17 	debit card, or electronic check.
149.18 	The board must determine whether an activity involves a noncampaign disbursement 
149.19 	within the meaning of this subdivision.
149.20 	A noncampaign disbursement is considered to be made in the year in which the candidate 
149.21 	made the purchase of goods or services or incurred an obligation to pay for goods or services.

149.22 	EFFECTIVE DATE. This section is effective July 1, 2017, and applies to elections 
149.23 	held on or after that date.

149.24 	Sec. 4. Minnesota Statutes 2016, section 10A.02, subdivision 13, is amended to read:
149.25 		Subd. 13.Rules. (a) Chapter 14 applies to the board. The board may adopt rules to carry 
149.26 	out the purposes of this chapter, if, before June 1, 2017, the board has published  a notice 
149.27 	of intent to adopt a rule without public hearing under section 14.22, subdivision 1, paragraph 
149.28 	(a); 14.389, subdivision 2; or 14.3895, subdivision 3; a dual notice under section 14.22, 
149.29 	subdivision 2; or a notice of hearing on a proposed rule under section 14.14.
150.1 	(b) After May 31, 2017, the board may only adopt rules that (1) incorporate specific 
150.2 	changes set forth in applicable statutes when no interpretation of law is required, or (2) 
150.3 	make changes to rules that do not alter the sense, meaning, or effect of a rule.
150.4 	(c) In addition to the notice required under chapter 14, the board shall notify the chairs 
150.5 	and ranking minority members of the committees or subcommittees in the senate and house 
150.6 	of representatives with primary jurisdiction over elections within seven calendar days of 
150.7 	taking the following actions:
150.8 	(1) publication of a notice of intent to adopt rules or a notice of hearing;
150.9 	(2) publication of proposed rules in the State Register;
150.10 	(3) issuance of a statement of need and reasonableness; or
150.11 	(4) adoption of final rules.

150.12 	EFFECTIVE DATE. This section is effective the day following final enactment for 
150.13 	rules for which a notice of intent to adopt a rule without public hearing under Minnesota 
150.14 	Statutes, section 14.22, subdivision 1, paragraph (a); 14.389, subdivision 2; or 14.3895, 
150.15 	subdivision 3; a dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a 
150.16 	notice of hearing on a proposed rule under Minnesota Statutes, section 14.14, was published 
150.17 	before June 1, 2017.

150.18 	Sec. 5. Minnesota Statutes 2016, section 10A.025, subdivision 1a, is amended to read:
150.19 		Subd. 1a.Electronic filing. (a) A report or statement required to be filed under this 
150.20 	chapter may be filed electronically. The board shall adopt rules to regulateon the technical 
150.21 	aspects of regulating electronic filing and to ensureensuring that the electronic filing process 
150.22 	is secure.
150.23 	(b) A document filed by facsimile transmission or electronic filing system has the same 
150.24 	force and effect as filing an original paper document.
150.25 	(c) In order to provide a secure environment for the submission of electronic files, the 
150.26 	board must require that a filer use a personal identification code when submitting an 
150.27 	electronic file. The board may also request the filer to provide a valid e-mail address in 
150.28 	order to receive confirmation and verification messages from the board.
150.29 	(d) After an electronic file is processed by the board, the information contained in the 
150.30 	electronic file becomes the property of the state subject to the terms of the Data Practices 
150.31 	Act under chapter 13.
151.1 	(e) In the case of a filing by facsimile transmission, the filer must retain the original of 
151.2 	the filed document and a record of the date and time of the transmission. If an electronic 
151.3 	filing system is used to submit an electronic file to the board, the filer must retain as 
151.4 	documentation the database and information on which the electronic submission of data is 
151.5 	based. The database and records are subject to audit as provided in this chapter.
151.6 	(f) Within five days of a request by the board, any person filing a document by facsimile 
151.7 	transmission or electronic filing system shall refile the document by one of the other filing 
151.8 	methods provided in Minnesota Rules, part 4501.0500, subpart 1.
151.9 	(g) Technical problems that prevent the successful submission of a facsimile transmission 
151.10 	or electronic file do not relieve the filer of the responsibility of meeting the requirements 
151.11 	of this chapter. An audit trail that demonstrates that the facsimile transmission or electronic 
151.12 	file was successfully submitted in a timely fashion may be used by the board to waive late 
151.13 	filing fees.

151.14 	Sec. 6. Minnesota Statutes 2016, section 10A.04, is amended by adding a subdivision to 
151.15 	read:
151.16 		Subd. 9.Reporting by multiple lobbyists representing the same entity. Clauses (1) 
151.17 	to (6) apply when a single individual, association, political subdivision, or public higher 
151.18 	education system is represented by more than one lobbyist.
151.19 	(1) The entity must appoint one designated lobbyist to report lobbyist disbursements 
151.20 	made by the entity. The designated lobbyist must indicate that status on the periodic reports 
151.21 	of lobbyist disbursements.
151.22 	(2) A reporting lobbyist may consent to report on behalf of one or more other lobbyists 
151.23 	for the same entity, in which case, the other lobbyists are persons whose activities the 
151.24 	reporting lobbyist must disclose and are subject to the disclosure requirements of subdivision 
151.25 	3. Lobbyist disbursement reports filed by a reporting lobbyist must include the names and 
151.26 	registration numbers of the other lobbyists whose activities are included in the report.
151.27 	(3) Lobbyists whose activities are accounted for by a reporting lobbyist are not required 
151.28 	to file lobbyist disbursement reports.
151.29 	(4) A lobbyist whose lobbying disbursements are provided to the board through a 
151.30 	reporting lobbyist must supply all relevant information on disbursements to the reporting 
151.31 	lobbyist no later than five days before the prescribed filing date.
152.1 	(5) The reporting periods and due dates for a reporting lobbyist are those provided in 
152.2 	subdivision 2. The late filing provisions in subdivision 5 apply to reports required by this 
152.3 	subdivision.
152.4 	(6) The reporting lobbyist must indicate the names and registration numbers of any 
152.5 	lobbyists who did not provide their lobbying disbursements for inclusion in a report. The 
152.6 	late filing provisions in subdivision 5 apply to lobbyists who fail to report information to 
152.7 	the reporting lobbyist.

152.8 	Sec. 7. Minnesota Statutes 2016, section 10A.071, subdivision 1, is amended to read:
152.9 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
152.10 	(b) "Gift" means money, real or personal property, a service, a loan, a forbearance or 
152.11 	forgiveness of indebtedness, or a promise of future employment, that is given and received 
152.12 	without the giver receiving consideration of equal or greater value in return.
152.13 	(c) "Official" means a public official, an employee of the legislature, or a local official 
152.14 	of a metropolitan governmental unit.
152.15 	(d) "Plaque" means a decorative item with an inscription recognizing an individual for 
152.16 	an accomplishment.

152.17 	Sec. 8. Minnesota Statutes 2016, section 10A.09, subdivision 5, is amended to read:
152.18 		Subd. 5.Form. (a) A statement of economic interest required by this section must be 
152.19 	on a form prescribed by the board. The individual filing must provide the following 
152.20 	information:
152.21 	(1) name, address, occupation, and principal place of business;
152.22 	(2) the name of each associated business and the nature of that association;
152.23 	(3) a listing of all real property within the state, excluding homestead property, in which 
152.24 	the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as buyer or 
152.25 	seller, or an option to buy, whether direct or indirect, if the interest is valued in excess of 
152.26 	$2,500; or (ii) an option to buy, if the property has a fair market value of more than $50,000;
152.27 	(4) a listing of all real property within the state in which a partnership of which the 
152.28 	individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed as 
152.29 	buyer or seller, or an option to buy, whether direct or indirect, if the individual's share of 
152.30 	the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the property 
152.31 	has a fair market value of more than $50,000. A listing under this clause or clause (3) must 
153.1 	indicate the street address and the municipality or the section, township, range and 
153.2 	approximate acreage, whichever applies, and the county in which the property is located;
153.3 	(5) a listing of any investments, ownership, or interests in property connected with 
153.4 	pari-mutuel horse racing in the United States and Canada, including a racehorse, in which 
153.5 	the individual directly or indirectly holds a partial or full interest or an immediate family 
153.6 	member holds a partial or full interest;
153.7 	(6) a listing of the principal business or professional activity category of each business 
153.8 	from which the individual receives more than $50 in any month as an employee, if the 
153.9 	individual has an ownership interest of 25 percent or more in the business; and
153.10 	(7) a listing of each principal business or professional activity category from which the 
153.11 	individual received compensation of more than $2,500 in the past 12 months as an 
153.12 	independent contractor.; and
153.13 	(8) the full name of each security with a value of more than $2,500 owned in part or in 
153.14 	full by the public official at any time during the reporting period.
153.15 	(b) The business or professional categories for purposes of paragraph (a), clauses (6) 
153.16 	and (7), must be the general topic headings used by the federal Internal Revenue Service 
153.17 	for purposes of reporting self-employment income on Schedule C. This paragraph does not 
153.18 	require an individual to report any specific code number from that schedule. Any additional 
153.19 	principal business or professional activity category may only be adopted if the category is 
153.20 	enacted by law.
153.21 	(c) For the purpose of an original statement of economic interest, "compensation in any 
153.22 	month" includes only compensation received in the calendar month immediately preceding 
153.23 	the date of appointment as a public official or filing as a candidate.
153.24 	(d) For the purpose of calculating the amount of compensation received from any single 
153.25 	source in a single month, the amount shall include the total amount received from the source 
153.26 	during the month, whether or not the amount covers compensation for more than one month.

153.27 	Sec. 9. Minnesota Statutes 2016, section 10A.09, subdivision 6, is amended to read:
153.28 		Subd. 6.Annual statement. (a) Each individual who is required to file a statement of 
153.29 	economic interest must also file an annual statement by the last Monday in January of each 
153.30 	year that the individual remains in office. The annual statement must cover the period 
153.31 	through December 31 of the year prior to the year when the statement is due. The annual 
153.32 	statement must include the amount of each honorarium in excess of $50 received since the 
153.33 	previous statement and the name and address of the source of the honorarium. The board 
154.1 	must maintain each annual statement of economic interest submitted by an officeholder in 
154.2 	the same file with the statement submitted as a candidate.
154.3 	(b) For the purpose of annual statements of economic interest to be filed, "compensation 
154.4 	in any month" includes compensation and honoraria received in any month between the 
154.5 	end of the period covered in the preceding statement of economic interest and the end of 
154.6 	the current period.
154.7 	(c) An individual must file the annual statement of economic interest required by this 
154.8 	subdivision to cover the period for which the individual served as a public official even 
154.9 	though at the time the statement was filed, the individual is no longer holding that office as 
154.10 	a public official.

154.11 	Sec. 10. Minnesota Statutes 2016, section 10A.105, subdivision 1, is amended to read:
154.12 		Subdivision 1.Single committee. A candidate must not accept contributions from a 
154.13 	source, other than self, in aggregate in excess of $750 or accept a public subsidy unless the 
154.14 	candidate designates and causes to be formed a single principal campaign committee for 
154.15 	each office sought. A candidate may not authorize, designate, or cause to be formed any 
154.16 	other political committee bearing the candidate's name or title or otherwise operating under 
154.17 	the direct or indirect control of the candidate. However, a candidate may be involved in the 
154.18 	direct or indirect control of a party unit.

154.19 	EFFECTIVE DATE. This section is effective July 1, 2017, and applies to elections 
154.20 	held on or after that date.

154.21 	Sec. 11. Minnesota Statutes 2016, section 10A.15, subdivision 1, is amended to read:
154.22 		Subdivision 1.Anonymous contributions. A political committee, political fund, principal 
154.23 	campaign committee, or party unit may not retain an anonymous contribution in excess of 
154.24 	$20, but must forward it to the board for deposit in the general account of the state elections 
154.25 	campaign account fund.

154.26 	Sec. 12. Minnesota Statutes 2016, section 10A.15, is amended by adding a subdivision to 
154.27 	read:
154.28 		Subd. 6.Contributions from Hennepin County registered associations.  In lieu of 
154.29 	registration with the board, an association registered with the Hennepin County filing officer 
154.30 	under sections 383B.041 to 383B.058 that makes contributions of more than $500 to a 
154.31 	committee or fund in a calendar year may notify the recipient committee of its registration 
155.1 	with Hennepin County, including its registration number, and instruct the recipient committee 
155.2 	to include the notice when the recipient committee discloses receipt of the contribution.

155.3 	Sec. 13. [10A.155] VALUE OF CONTRIBUTIONS OF AUTOMOBILE USE.
155.4 	Automobile use provided to a committee by an individual may be valued at the lowest 
155.5 	rate used by the state to reimburse its employees for automobile use. Alternatively, the value 
155.6 	of the automobile may be calculated as the actual cost of fuel, maintenance, repairs, and 
155.7 	insurance directly related to the use of the automobile. An automobile provided by an 
155.8 	association must be valued at the fair market value for renting an equivalent automobile.

155.9 	Sec. 14. Minnesota Statutes 2016, section 10A.20, subdivision 3, is amended to read:
155.10 		Subd. 3.Contents of report. (a) The report required by this section must include each 
155.11 	of the items listed in paragraphs (b) to (o)(q) that are applicable to the filer. The board shall 
155.12 	prescribe forms based on filer type indicating which of those items must be included on the 
155.13 	filer's report.
155.14 	(b) The report must disclose the amount of liquid assets on hand at the beginning of the 
155.15 	reporting period.
155.16 	(c) The report must disclose the name, address, employer, or occupation if self-employed, 
155.17 	and registration number if registered with the board, of each individual or association that 
155.18 	has made one or more contributions to the reporting entity, including the purchase of tickets 
155.19 	for a fund-raising effort, that in aggregate within the year exceed $200 for legislative or 
155.20 	statewide candidates or more than $500 for ballot questions, together with the amount and 
155.21 	date of each contribution, and the aggregate amount of contributions within the year from 
155.22 	each source so disclosed. A donation in kind must be disclosed at its fair market value. An 
155.23 	approved expenditure must be listed as a donation in kind. A donation in kind is considered 
155.24 	consumed in the reporting period in which it is received. The names of contributors must 
155.25 	be listed in alphabetical order. Contributions from the same contributor must be listed under 
155.26 	the same name. When a contribution received from a contributor in a reporting period is 
155.27 	added to previously reported unitemized contributions from the same contributor and the 
155.28 	aggregate exceeds the disclosure threshold of this paragraph, the name, address, and 
155.29 	employer, or occupation if self-employed, of the contributor must then be listed on the 
155.30 	report.
155.31 	(d) The report must disclose the sum of contributions to the reporting entity during the 
155.32 	reporting period.
156.1 	(e) The report must disclose each loan made or received by the reporting entity within 
156.2 	the year in aggregate in excess of $200, continuously reported until repaid or forgiven, 
156.3 	together with the name, address, occupation, principal place of business, if any, and 
156.4 	registration number if registered with the board of the lender and any endorser and the date 
156.5 	and amount of the loan. If a loan made to the principal campaign committee of a candidate 
156.6 	is forgiven or is repaid by an entity other than that principal campaign committee, it must 
156.7 	be reported as a contribution for the year in which the loan was made.
156.8 	(f) The report must disclose each receipt over $200 during the reporting period not 
156.9 	otherwise listed under paragraphs (c) to (e).
156.10 	(g) The report must disclose the sum of all receipts of the reporting entity during the 
156.11 	reporting period.
156.12 	(h) The report must disclose the name, address, and registration number if registered 
156.13 	with the board of each individual or association to whom aggregate expenditures, approved 
156.14 	expenditures, independent expenditures, and ballot question expenditures have been made 
156.15 	by or on behalf of the reporting entity within the year in excess of $200, together with the 
156.16 	amount, date, and purpose of each expenditure and the name and address of, and office 
156.17 	sought by, each candidate on whose behalf the expenditure was made, identification of the 
156.18 	ballot question that the expenditure was intended to promote or defeat and an indication of 
156.19 	whether the expenditure was to promote or to defeat the ballot question, and in the case of 
156.20 	independent expenditures made in opposition to a candidate, the candidate's name, address, 
156.21 	and office sought. A reporting entity making an expenditure on behalf of more than one 
156.22 	candidate for state or legislative office must allocate the expenditure among the candidates 
156.23 	on a reasonable cost basis and report the allocation for each candidate.
156.24 	(i) The report must disclose the sum of all expenditures made by or on behalf of the 
156.25 	reporting entity during the reporting period.
156.26 	(j) The report must disclose the amount and nature of an advance of credit incurred by 
156.27 	the reporting entity, continuously reported until paid or forgiven. If an advance of credit 
156.28 	incurred by the principal campaign committee of a candidate is forgiven by the creditor or 
156.29 	paid by an entity other than that principal campaign committee, it must be reported as a 
156.30 	donation in kind for the year in which the advance of credit was made.
156.31 	(k) The report must disclose the name, address, and registration number if registered 
156.32 	with the board of each political committee, political fund, principal campaign committee, 
156.33 	or party unit to which contributions have been made that aggregate in excess of $200 within 
156.34 	the year and the amount and date of each contribution.
157.1 	(l) The report must disclose the sum of all contributions made by the reporting entity 
157.2 	during the reporting period.
157.3 	(m) The report must disclose the name, address, and registration number if registered 
157.4 	with the board of each individual or association to whom noncampaign disbursements have 
157.5 	been made that aggregate in excess of $200 within the year by or on behalf of the reporting 
157.6 	entity and the amount, date, and purpose of each noncampaign disbursement.
157.7 	(n) The report must disclose the sum of all noncampaign disbursements made within 
157.8 	the year by or on behalf of the reporting entity.
157.9 	(o) The report must disclose the name and address of a nonprofit corporation that provides 
157.10 	administrative assistance to a political committee or political fund as authorized by section 
157.11 	211B.15, subdivision 17, the type of administrative assistance provided, and the aggregate 
157.12 	fair market value of each type of assistance provided to the political committee or political 
157.13 	fund during the reporting period.
157.14 	(p) Legislative, statewide, and judicial candidates, party units, and political committees 
157.15 	and funds must itemize contributions that in aggregate within the year exceed $200 for 
157.16 	legislative or statewide candidates or more than $500 for ballot questions on reports submitted 
157.17 	to the board. The itemization must include the date on which the contribution was received, 
157.18 	the individual or association that provided the contribution, and the address of the contributor. 
157.19 	Additionally, the itemization for a donation in kind must provide a description of the item 
157.20 	or service received. Contributions that are less than the itemization amount must be reported 
157.21 	as an aggregate total.
157.22 	(q) Legislative, statewide, and judicial candidates, party units, political committees and 
157.23 	funds, and committees to promote or defeat a ballot question must itemize expenditures and 
157.24 	noncampaign disbursements that in aggregate exceed $200 in a calendar year on reports 
157.25 	submitted to the board. The itemization must include the date on which the committee made 
157.26 	or became obligated to make the expenditure or disbursement, the name and address of the 
157.27 	vendor that provided the service or item purchased, and a description of the service or item 
157.28 	purchased. Expenditures and noncampaign disbursements must be listed on the report 
157.29 	alphabetically by vendor.

157.30 	Sec. 15. Minnesota Statutes 2016, section 10A.20, subdivision 15, is amended to read:
157.31 		Subd. 15.Equitable relief. A candidate whose opponent does not timely file the report 
157.32 	due 15 days before the primary, or the report due ten days before the general election, or 
157.33 	the notice required under section 10A.25, subdivision 10, may petition the district court for 
158.1 	immediate equitable relief to enforce the filing requirement. A prevailing party under this 
158.2 	subdivision may be awarded attorney fees and costs by the court.

158.3 	Sec. 16. Minnesota Statutes 2016, section 10A.245, subdivision 2, is amended to read:
158.4 		Subd. 2.Termination by board. The board may terminate the registration of a principal 
158.5 	campaign committee, party unit, political committee, or political fund found to be inactive 
158.6 	under this section 60 days after sending written notice of inactivity by certified mail to the 
158.7 	affected association at the last address on record with the board for that association. Within 
158.8 	60 days after the board sends notice under this section, the affected association must dispose 
158.9 	of its assets as provided in this subdivision. The assets of the principal campaign committee, 
158.10 	party unit, or political committee must be used for the purposes authorized by this chapter 
158.11 	or section 211B.12 or must be liquidated and deposited in the general account of the state 
158.12 	elections campaign account fund. The assets of an association's political fund that were 
158.13 	derived from the association's general treasury money revert to the association's general 
158.14 	treasury. Assets of a political fund that resulted from contributions to the political fund must 
158.15 	be used for the purposes authorized by this chapter or section 211B.12 or must be liquidated 
158.16 	and deposited in the general account of the state elections campaign account fund.

158.17 	Sec. 17. Minnesota Statutes 2016, section 10A.25, subdivision 1, is amended to read:
158.18 		Subdivision 1.Limits are voluntary. The expenditure limits imposed by this section 
158.19 	apply only to a candidate who has signed an agreement a pledge under section 10A.322to 
158.20 	be bound by them as a condition of receiving a public subsidy for the candidate's campaign.

158.21 	Sec. 18. Minnesota Statutes 2016, section 10A.25, subdivision 2, is amended to read:
158.22 		Subd. 2.Amounts. (a) In a segment of an election cycle, the principal campaign 
158.23 	committee of the candidate must not make campaign expenditures nor permit approved 
158.24 	expenditures to be made on behalf of the candidate that result in aggregate expenditures in 
158.25 	excess of the following:
158.26 	(1) for governor and lieutenant governor, running together, $3,651,200 in the election 
158.27 	segment and $1,564,800 in the nonelection segment;
158.28 	(2) for attorney general, $626,000 in the election segment and $208,700 in the nonelection 
158.29 	segment;
158.30 	(3) for secretary of state and state auditor, separately, $417,300 in the election segment 
158.31 	and $104,400 in the nonelection segment;
159.1 	(4) for state senator, $94,700 in the election segment and $31,600 in a nonelection 
159.2 	segment;
159.3 	(5) for state representative, $63,100 in the election segment.
159.4 	(b) In addition to the amount in paragraph (a), clause (1), a candidate for endorsement 
159.5 	for the office of lieutenant governor at the convention of a political party may make campaign 
159.6 	expenditures and approved expenditures of five percent of that amount to seek endorsement.
159.7 	(c) If a special election cycle occurs during a general election cycle, expenditures by or 
159.8 	on behalf of a candidate in the special election do not count as expenditures by or on behalf 
159.9 	of the candidate in the general election.
159.10 	(d) The expenditure limits in this subdivision for an office are increased by ten percent 
159.11 	for a candidate who has not previously held the same office, whose name has not previously 
159.12 	been on the primary or general election ballot for that office, and who has not in the past 
159.13 	ten years raised or spent more than $750 in a run for any other office whose territory now 
159.14 	includes a population that is more than one-third of the population in the territory of the 
159.15 	new office. Candidates who qualify for first-time candidate status receive a ten percent 
159.16 	increase in the campaign expenditure limit in all segments of the applicable election cycle. 
159.17 	In the case of a legislative candidate, the office is that of a member of the house of 
159.18 	representatives or senate without regard to any specific district.

159.19 	Sec. 19. Minnesota Statutes 2016, section 10A.25, subdivision 10, is amended to read:
159.20 		Subd. 10.Effect of opponent's conduct. (a) After the deadline for filing a spending 
159.21 	limit agreement pledge under section 10A.322, a candidate who has agreed pledged to be 
159.22 	bound by the expenditure limits imposed by this section as a condition of receiving a public 
159.23 	subsidy for the candidate's campaign may choose to be released from the expenditure limits 
159.24 	but remain eligible to receive a public subsidy if the candidate has an opponent who has 
159.25 	not agreed pledged to be bound by the limits and has received contributions or made or 
159.26 	become obligated to make expenditures during that election cycle in excess of the following 
159.27 	limits:
159.28 	(1) up to the close of the reporting period before the primary election, receipts or 
159.29 	expenditures equal to 20 percent of the election segment expenditure limit for that office 
159.30 	as set forth in subdivision 2; or
159.31 	(2) after the close of the reporting period before the primary election, cumulative receipts 
159.32 	or expenditures during that election cycle equal to 50 percent of the election cycle expenditure 
159.33 	limit for that office as set forth in subdivision 2.
160.1 	Before the primary election, a candidate's "opponents" are only those who will appear 
160.2 	on the ballot of the same party in the primary election.
160.3 	(b) A candidate who has not agreed pledged to be bound by expenditure limits, or the 
160.4 	candidate's principal campaign committee, must file written notice with the board and 
160.5 	provide written notice to any opponent of the candidate for the same office within 24 hours 
160.6 	of exceeding the limits in paragraph (a). The notice must state only that the candidate or 
160.7 	candidate's principal campaign committee has received contributions or made or become 
160.8 	obligated to make campaign expenditures in excess of the limits in paragraph (a).
160.9 	(c) Upon receipt of the notice, a candidate who had agreed pledged to be bound by the 
160.10 	limits may file with the board a notice that the candidate chooses to be no longer bound by 
160.11 	the expenditure limits. A notice of a candidate's choice not to be bound by the expenditure 
160.12 	limits that is based on the conduct of an opponent in the state primary election may not be 
160.13 	filed more than one day after the State Canvassing Board has declared the results of the 
160.14 	state primary.
160.15 	(d) A candidate who has agreed pledged to be bound by the expenditure limits imposed 
160.16 	by this section and whose opponent in the general election has chosen, as provided in 
160.17 	paragraph (c), not to be bound by the expenditure limits because of the conduct of an 
160.18 	opponent in the primary election is no longer bound by the limits but remains eligible to 
160.19 	receive a public subsidy.

160.20 	Sec. 20. Minnesota Statutes 2016, section 10A.257, subdivision 1, is amended to read:
160.21 		Subdivision 1.Unused funds. For election cycles ending on or before December 31, 
160.22 	2018, after all campaign expenditures and noncampaign disbursements for an election cycle 
160.23 	have been made, an amount up to 25 percent of the 2016 election cycle expenditure limit 
160.24 	for the office may be carried forward. Any remaining amount up to the total amount of the 
160.25 	2016 public subsidy from the state elections campaign fund must be returned to the state 
160.26 	treasury for credit to the general fund under Minnesota Statutes 2016, section 10A.324. Any 
160.27 	remaining amount in excess of the total 2016 public subsidy must be contributed to the state 
160.28 	elections campaign account or a political party for multicandidate expenditures as defined 
160.29 	in section 10A.275.

160.30 	EFFECTIVE DATE. This section is effective July 1, 2017, and applies to elections 
160.31 	held on or after that date.

161.1 	Sec. 21. Minnesota Statutes 2016, section 10A.27, subdivision 10, is amended to read:
161.2 		Subd. 10.Limited personal contributions. A candidate who signs an agreement a 
161.3 	pledge under section 10A.322 may not contribute to the candidate's own campaign during 
161.4 	a segment of an election cycle more than five times the candidate's contribution limit for 
161.5 	that segment under subdivision 1.

161.6 	Sec. 22. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to 
161.7 	read:
161.8 		Subd. 11a.Contributions from the sale of goods or services. Proceeds from the sale 
161.9 	of goods or services by a political committee must be reported as a contribution to that 
161.10 	committee, as provided in section 10A.13. A political committee selling goods or services 
161.11 	must disclose to each purchaser, prior to a sale, that proceeds may be used to make a 
161.12 	contribution to an independent expenditure political committee or fund, or may be used by 
161.13 	the committee for other political purposes as authorized by law, and must offer the purchaser 
161.14 	an opportunity to review the committee's most recent report submitted to the board under 
161.15 	section 10A.20. A copy of the report must be clearly posted in a conspicuous location on 
161.16 	at least 8.5-inch by 11-inch sized paper and available for public inspection at the point of 
161.17 	sale.

161.18 	Sec. 23. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to 
161.19 	read:
161.20 		Subd. 16a.Return of contributions after merger of governor and lieutenant governor 
161.21 	funds.  Funds transferred to the joint committee for candidates for governor and lieutenant 
161.22 	governor that result in aggregate contributions in excess of the applicable limits may be 
161.23 	returned to the contributor within 90 days of the transfer of funds to the joint committee.

161.24 	Sec. 24. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to 
161.25 	read:
161.26 		Subd. 16b.Special election contribution limits. Election segment contribution limits 
161.27 	set forth in this section apply to a special election cycle.

161.28 	Sec. 25. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to 
161.29 	read:
161.30 		Subd. 16c.Contribution limits apply independently. Contribution limits apply 
161.31 	independently for election segments, nonelection segments, and special election cycles.

162.1 	Sec. 26. Minnesota Statutes 2016, section 10A.28, subdivision 3, is amended to read:
162.2 		Subd. 3.Conciliation agreement. If the board finds that there is reason to believe that 
162.3 	excess expenditures have been made or excess contributions have been accepted contrary 
162.4 	to subdivision 1 or 2, the board must make every effort for a period of at least 14 days after 
162.5 	its finding to correct the matter by informal methods of conference and conciliation and to 
162.6 	enter a conciliation agreement with the person involved. A conciliation agreement under 
162.7 	this subdivision is a matter of public record. Unless violated, a conciliation agreement is a 
162.8 	bar to any civil proceeding under subdivision 4.

162.9 	Sec. 27. Minnesota Statutes 2016, section 10A.31, is amended by adding a subdivision to 
162.10 	read:
162.11 		Subd. 7b.Failure to repay. A candidate who fails to repay money required by the 
162.12 	agreement cannot be paid additional public subsidy funds during the current or future election 
162.13 	cycles until the entirety of the unexpended funds and any associated collection fees are 
162.14 	either repaid to the board or discharged by court action.

162.15 	Sec. 28. Minnesota Statutes 2016, section 10A.322, subdivision 1, is amended to read:
162.16 		Subdivision 1.Agreement Pledge by candidate. (a) As a condition of receiving a public 
162.17 	subsidy, A candidate must may sign and file with the board a written agreement pledge in 
162.18 	which the candidate agrees that the candidate will comply with sections 10A.25; 10A.27, 
162.19 	subdivision 10; 10A.324; and 10A.38 until the dissolution of the principal campaign 
162.20 	committee of the candidate or the end of the first election cycle completed after the pledge 
162.21 	was filed, whichever occurs first.
162.22 	(b) Before the first day of filing for office, the board must forward agreement pledge
162.23 	forms to all filing officers. The board must also provide agreement pledge forms to candidates 
162.24 	on request at any time. The candidate must file the agreement pledge with the board at least 
162.25 	three weeks before the candidate's state primary. An agreement A pledge may not be filed 
162.26 	after that date. An agreement The board must post a copy of each pledge filed by a candidate 
162.27 	on the board's Web site. For purposes of public posting, a pledge once filed may not be 
162.28 	rescinded.
162.29 	(c) The board must notify the commissioner of revenue of any agreement signed under 
162.30 	this subdivision.
162.31 	(d) Notwithstanding paragraph (b), if a vacancy occurs that will be filled by means of 
162.32 	a special election and the filing period does not coincide with the filing period for the general 
163.1 	election, a candidate may sign and submit a spending limit agreement not later than the day 
163.2 	after the close of the filing period for the special election for which the candidate filed.
163.3 	(c) A pledge filed by a candidate under this subdivision is a voluntary agreement by the 
163.4 	candidate to comply with the sections listed in paragraph (a). Compliance with the terms 
163.5 	of a pledge, or any provisions of law cited within the pledge, may not be the subject of an 
163.6 	advisory opinion issued under section 10A.02, subdivision 12, and is not subject to an audit, 
163.7 	investigation, or enforcement action by the board under section 10A.02, 10A.022, or any 
163.8 	other applicable law.

163.9 	Sec. 29. Minnesota Statutes 2016, section 10A.38, is amended to read:
163.10 	10A.38 CAPTIONING OF CAMPAIGN ADVERTISEMENTS.
163.11 	(a) This section applies to a campaign advertisement by a candidate who is governed 
163.12 	by an agreement has filed a pledge under section 10A.322.
163.13 	(b) "Campaign advertisement" means a professionally produced visual or audio recording 
163.14 	of two minutes or less produced by the candidate for the purpose of influencing the 
163.15 	nomination or election of a candidate.
163.16 	(c) A campaign advertisement that is disseminated as an advertisement by broadcast or 
163.17 	cable television must include closed captioning for deaf and hard-of-hearing viewers, unless 
163.18 	the candidate has filed with the board before the advertisement is disseminated a statement 
163.19 	setting forth the reasons for not doing so. A campaign advertisement that is disseminated 
163.20 	as an advertisement to the public on the candidate's Web site must include closed captioning 
163.21 	for deaf and hard-of-hearing viewers, unless the candidate has posted on the Web site a 
163.22 	transcript of the spoken content of the advertisement or the candidate has filed with the 
163.23 	board before the advertisement is disseminated a statement setting forth the reasons for not 
163.24 	doing so. A campaign advertisement must not be disseminated as an advertisement by radio 
163.25 	unless the candidate has posted on the candidate's Web site a transcript of the spoken content 
163.26 	of the advertisement or the candidate has filed with the board before the advertisement is 
163.27 	disseminated a statement setting forth the reasons for not doing so.

163.28 	Sec. 30. VOTING EQUIPMENT GRANT.
 163.29 		Subdivision 1.Voting equipment grant account. A voting equipment grant program 
163.30 	is established. The secretary of state must use money appropriated for the program to provide 
163.31 	grants to counties and municipalities as authorized by this section. Funds appropriated for 
163.32 	the grant are available until June 30, 2020.
164.1 		Subd. 2.Authorized equipment. (a) A county or municipality may apply to receive a 
164.2 	grant under this section for the purchase or lease of the following equipment:
164.3 	(1) electronic roster equipment and software that meets the technology requirements of 
164.4 	Minnesota Statutes, section 201.225, subdivision 2;
164.5 	(2) assistive voting technology; or
164.6 	(3) automatic tabulating equipment.
164.7 	A purchase or lease of equipment is eligible for a grant under this section if the purchase 
164.8 	is made, or lease entered, on or after July 1, 2017. A county or municipality that has 
164.9 	purchased or leased eligible equipment before July 1, 2017, may apply for reimbursement.
164.10 	(b) The grant funds must not be used for maintenance or repair of voting equipment.
164.11 		Subd. 3.Amount of grant. A county or municipal government is eligible to receive a 
164.12 	grant equal to 75 percent of the total cost of the electronic roster equipment and software 
164.13 	or 50 percent of the total cost for assistive voting technology or automatic tabulating 
164.14 	equipment. The secretary of state must first award grants to counties and municipalities 
164.15 	leasing or purchasing new equipment or software. If funds remain after awarding grants for 
164.16 	new equipment or software, the secretary of state must use the remaining funds for grants 
164.17 	to counties and municipalities seeking reimbursement for equipment or software already 
164.18 	purchased.
164.19 		Subd. 4.Application for grant; certification of costs. (a) To receive a grant, a county 
164.20 	or municipality must submit an application to the secretary of state. The secretary of state 
164.21 	shall prescribe a form for this purpose. At a minimum, the application must describe:
164.22 	(1) the type of equipment or software proposed for purchase or lease;
164.23 	(2) the expected total cost of the equipment or software, and sources of funding that will 
164.24 	be used for the purchase or lease in addition to the grant funding provided by this section;
164.25 	(3) the county's or municipality's plan to address the long-term maintenance, repair, and 
164.26 	eventual replacement costs for the equipment or software without using any funds from the 
164.27 	grant for these purposes; and
164.28 	(4) any other information required by the secretary of state.
164.29 	(b) The secretary of state must establish:
164.30 	(1) a deadline for receipt of grant applications;
164.31 	(2) a procedure for awarding and distributing grants;
165.1 	(3) criteria for the fair, proportional distribution of grants if the funds do not completely 
165.2 	cover the requests for a particular type of equipment; and
165.3 	(4) a process for verifying the proper use of the grants after distribution.
165.4 		Subd. 5.Report to legislature. No later than January 15, 2018, and annually thereafter 
165.5 	until the appropriations provided for grants under this section have been exhausted, the 
165.6 	secretary of state must submit a report to the legislative committees with jurisdiction over 
165.7 	elections policy on grants awarded by this section. The report must detail each grant awarded, 
165.8 	including the jurisdiction, the amount of the grant, and the type of equipment or software 
165.9 	purchased.

165.10 	Sec. 31.  REPEALER.
 165.11 		Subdivision 1.Campaign subsidy. Minnesota Statutes 2016, sections 10A.28, 
165.12 	subdivision 1; 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b, 
165.13 	and 11; 10A.315; 10A.321; 10A.322, subdivisions 2 and 4; 10A.323; and 10A.324, 
165.14 	subdivisions 1 and 3, and Minnesota Rules, parts 4503.1400, subparts 2, 3, 4, 5, 6, 7, 8, and 
165.15 	9; and 4503.1450, are repealed effective July 1, 2017, and apply to elections held on or after 
165.16 	that date. Money in the account under Minnesota Statutes, section 10A.30, on June 30, 
165.17 	2017, cancels to the general fund, and amounts designated under Minnesota Statutes, section 
165.18 	10A.31, on income tax and property tax refund returns filed after June 30, 2017, are not 
165.19 	effective and remain in the general fund.
165.20 		Subd. 2.Rules. Minnesota Rules, parts 4501.0300, subpart 3; 4501.0500, subpart 2; 
165.21 	4503.0200, subpart 6; 4503.0300, subpart 4; 4503.0400, subpart 1; 4503.0500, subparts 5 
165.22 	and 8; 4503.0700, subparts 2 and 3; 4503.1300, subpart 5; 4503.1600; 4503.1700; 4503.1800; 
165.23 	4505.0100, subpart 3; 4505.0900, subparts 2, 3, 4, 5, 6, and 7; 4511.0500, subpart 2; 
165.24 	4512.0100, subparts 2, 4, and 5; and 4525.0210, subpart 1, are repealed.

APPENDIX 

Repealed Minnesota Statutes: SF0605-3 

4.46 WASHINGTON OFFICE.
The governor may appoint employees for the Washington, D.C., office of the state of Minnesota and may prescribe their duties. In the operation of the office, the governor may expend money appropriated by the legislature for promotional purposes in the same manner as private persons, firms, corporations, and associations expend money for promotional purposes. Promotional expenditures for food, lodging, or travel are not governed by the travel rules of the commissioner of management and budget. 

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.28 PENALTY FOR EXCEEDING LIMITS.Subdivision 1.Exceeding expenditure limits. 
A candidate subject to the expenditure limits in section 10A.25 who permits the candidate's principal campaign committee to make expenditures or permits approved expenditures to be made on the candidate's behalf in excess of the limits imposed by section 10A.25, as adjusted by section 10A.255, is subject to a civil penalty up to four times the amount by which the expenditures exceeded the limit. 

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.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. 

10A.324 RETURN OF PUBLIC SUBSIDY.Subdivision 1.When return required. 
A candidate must return all or a portion of the public subsidy received from the state elections campaign account or the public subsidy received under section 10A.315, under the circumstances in this section or section 10A.257, subdivision 1. 

To the extent that the amount of public subsidy received exceeds the aggregate of: (1) actual expenditures made by the principal campaign committee of the candidate; and (2) approved expenditures made on behalf of the candidate, the treasurer of the candidate's principal campaign committee must return an amount equal to the difference to the board. The cost of postage that was not used during an election cycle and payments that created credit balances at vendors at the close of an election cycle are not considered expenditures for purposes of determining the amount to be returned. Expenditures in excess of the candidate's spending limit do not count in determining aggregate expenditures under this paragraph. 

Subd. 3.How return determined. 
Whether or not a candidate is required under subdivision 1 to return all or a portion of the public subsidy must be determined from the report required to be filed with the board by that candidate by January 31 of the year following an election. An amount required to be returned must be submitted in the form of a check or money order and must accompany the report filed with the board. The board must deposit the check or money order in the state treasury for credit to the general fund. The amount returned must not exceed the amount of public subsidy received by the candidate. 

14.05 GENERAL AUTHORITY.Subd. 5.Review and repeal of rules. 
By December 1 of each year, an agency must submit to the governor, the Legislative Coordinating Commission, the policy and funding committees and divisions with jurisdiction over the agency, and the revisor of statutes, a list of any rules or portions of rules that are obsolete, unnecessary, or duplicative of other state or federal statutes or rules. The list must also include an explanation of why the rule or portion of the rule is obsolete, unnecessary, or duplicative of other state or federal statutes or rules. By December 1, the agency must either report a timetable for repeal of the rule or portion of the rule, or must develop a bill for submission to the appropriate policy committee to repeal the obsolete, unnecessary, or duplicative rule. Such a bill must include proposed authorization to use the expedited procedures of section 14.389 to repeal or amend the obsolete, unnecessary, or duplicative rule. A report submitted under this subdivision must be signed by the person in the agency who is responsible for identifying and initiating repeal of obsolete rules. The report also must identify the status of any rules identified in the prior year's report as obsolete, unnecessary, or duplicative. If none of an agency's rules are obsolete, unnecessary, or duplicative, an agency's December 1 report must state that conclusion.