1.1 	A bill for an act
1.2 	relating to taxation; making various policy and technical changes to individual 
1.3 	income and corporate franchise taxes, sales and use taxes, special taxes, property 
1.4 	taxes, gross revenues taxes, fire and police state aid, and other miscellaneous taxes 
1.5 	and tax provisions;amending Minnesota Statutes 2018, sections 6.495, subdivision 
1.6 	3; 144E.42, subdivision 2; 162.145, subdivision 3; 270B.08, subdivision 2; 270C.85, 
1.7 	subdivision 2; 270C.89, subdivisions 1, 2; 270C.91; 272.02, subdivisions 27, 81; 
1.8 	273.032; 273.061, subdivision 9; 273.0755; 273.113, subdivision 3; 273.119, 
1.9 	subdivision 2; 273.1231, subdivision 3; 273.124, subdivision 13; 273.13, 
1.10 	subdivisions 22, 34; 273.136, subdivision 2; 273.1384, subdivision 3; 273.1387, 
1.11 	subdivision 3; 273.18; 274.14; 274.16; 275.025, subdivision 1; 289A.08, 
1.12 	subdivision 6; 289A.25, subdivision 1; 289A.31, subdivision 2; 289A.37, 
1.13 	subdivision 6; 289A.38, subdivision 7; 290.0132, subdivision 26; 290.0137; 290.06, 
1.14 	subdivisions 2c, 2d; 290.0802, subdivisions 2, 3; 290.091, subdivision 2; 290.92, 
1.15 	subdivision 28; 290A.03, subdivisions 3, 4, 8; 290A.05; 290A.08; 290A.09; 
1.16 	290B.09, subdivision 1; 295.50, subdivisions 3, 4, 9b, 14, 15, by adding 
1.17 	subdivisions; 295.53, subdivision 1; 295.57, subdivision 5; 295.582, subdivision 
1.18 	1; 297A.61, subdivision 18; 297A.67, subdivisions 6, 12; 297A.68, subdivisions 
1.19 	17, 42, 44; 297A.70, subdivisions 3, 4, 16; 297A.71, subdivisions 22, 45; 297A.75, 
1.20 	subdivision 1; 297A.77, by adding a subdivision; 297A.84; 297A.85; 297B.01, 
1.21 	subdivisions 14, 16; 297I.20, subdivision 3; 298.018, subdivision 1, by adding a 
1.22 	subdivision; 298.282, subdivision 1; 353G.01, subdivision 9; 353G.05, subdivision 
1.23 	2; 353G.08, subdivisions 1, 1a; 353G.17, subdivision 2; 356.20, subdivision 4a; 
1.24 	356.219, subdivision 8; 423A.02, subdivisions 1b, 3; 423A.022, subdivisions 2, 
1.25 	4; 424A.016, subdivisions 2, 4; 424A.02, subdivisions 1, 3a, 10; 424A.03, 
1.26 	subdivision 2; 424A.05, subdivisions 2, 3, by adding a subdivision; 424A.07; 
1.27 	424A.091, subdivision 3; 424A.092, subdivisions 3, 4; 424A.093, subdivision 5; 
1.28 	424B.09; 462D.03, subdivision 2; 469.177, subdivision 1; Laws 2017, First Special 
1.29 	Session chapter 1, article 8, section 3; proposing coding for new law in Minnesota 
1.30 	Statutes, chapters 297I; 424A; proposing coding for new law as Minnesota Statutes, 
1.31 	chapters 477B; 477C; repealing Minnesota Statutes 2018, sections 69.011, 
1.32 	subdivisions 1, 2, 2b, 2c, 3, 4; 69.021, subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, 11; 
1.33 	69.022; 69.031, subdivisions 1, 3, 5; 69.041; 69.051, subdivisions 1, 1a, 1b, 2, 3, 
1.34 	4; 69.33; 69.80; 270C.131; 275.29; 297I.25, subdivision 2.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	ARTICLE 1
2.3 	DEPARTMENT OF REVENUE INDIVIDUAL INCOME AND CORPORATE 
2.4 	FRANCHISE TAXES: POLICY CHANGES

2.5 	Section 1. Minnesota Statutes 2018, section 290.0132, subdivision 26, is amended to read:
2.6 		Subd. 26.Social Security benefits. (a) A portion of Social Security benefits is allowed 
2.7 	as a subtraction. The subtraction equals the lesser of Social Security benefits or a maximum 
2.8 	subtraction subject to the limits under paragraphs (b), (c), and (d).
2.9 	(b) For married taxpayers filing a joint return and surviving spouses, the maximum 
2.10 	subtraction equals $4,500. The maximum subtraction is reduced by 20 percent of provisional 
2.11 	income over $77,000. In no case is the subtraction less than zero.
2.12 	(c) For single or head-of-household taxpayers, the maximum subtraction equals $3,500. 
2.13 	The maximum subtraction is reduced by 20 percent of provisional income over $60,200. 
2.14 	In no case is the subtraction less than zero.
2.15 	(d) For married taxpayers filing separate returns, the maximum subtraction equals $2,250
2.16 	one-half the maximum subtraction for joint returns under paragraph (b). The maximum 
2.17 	subtraction is reduced by 20 percent of provisional income over $38,500 one-half the 
2.18 	threshold amount specified in paragraph (b). In no case is the subtraction less than zero.
2.19 	(e) For purposes of this subdivision, "provisional income" means modified adjusted 
2.20 	gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of 
2.21 	the Social Security benefits received during the taxable year, and "Social Security benefits" 
2.22 	has the meaning given in section 86(d)(1) of the Internal Revenue Code.
2.23 	(f) The commissioner shall adjust the maximum subtraction and threshold amounts in 
2.24 	paragraphs (b) to (d) by the percentage determined pursuant to the provisions of section 
2.25 	1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) of the Internal Revenue 
2.26 	Code the word "2016" shall be substituted for the word "1992." For 2018, the commissioner 
2.27 	shall then determine the percentage change from the 12 months ending on August 31, 2016, 
2.28 	to the 12 months ending on August 31, 2017, and in each subsequent year, from the 12 
2.29 	months ending on August 31, 2016, to the 12 months ending on August 31 of the year 
2.30 	preceding the taxable year. The determination of the commissioner pursuant to this 
2.31 	subdivision must not be considered a rule and is not subject to the Administrative Procedure 
2.32 	Act contained in chapter 14, including section 14.386. The maximum subtraction and 
3.1 	threshold amounts as adjusted must be rounded to the nearest $10 amount. If the amount 
3.2 	ends in $5, the amount is rounded up to the nearest $10 amount.

3.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
3.4 	31, 2018.

3.5 	Sec. 2. Minnesota Statutes 2018, section 290.0137, is amended to read:
3.6 	290.0137 ACCELERATED RECOGNITION OF CERTAIN INSTALLMENT 
3.7 	SALE GAINS.
3.8 	(a) In the case of a nonresident individual or a person who becomes a nonresident 
3.9 	individual during the tax year, taxable net income shall include the allocable amount realized 
3.10 	upon a sale of the assets of, or any interest in, an S corporation or partnership that operated 
3.11 	in Minnesota during the year of sale, including any income or gain to be recognized in future 
3.12 	years pursuant to an installment sale method of reporting under the Internal Revenue Code.
3.13 	(1) For the purposes of this paragraph, an individual who becomes a nonresident of 
3.14 	Minnesota in any year after an installment sale is required to recognize the full amount of 
3.15 	any income or gain described in this paragraph on the individual's final Minnesota resident 
3.16 	tax return to the extent that such income has not been recognized in a prior year.
3.17 	(2) For the purposes of this section, "realized" has the meaning given in section 1001(b) 
3.18 	of the Internal Revenue Code.
3.19 	(3) For the purposes of this section, "installment sale" means any installment sale under 
3.20 	section 453 of the Internal Revenue Code and any other sale that is reported utilizing a 
3.21 	method of accounting authorized under subchapter E of the Internal Revenue Code that 
3.22 	allows taxpayers to delay reporting or recognizing a realized gain until a future year.
3.23 	(4) For the purposes of this section, "allocable amount" means the full amount to be 
3.24 	apportioned to Minnesota under section 290.191 or 290.20, or the full amount to be assigned 
3.25 	to Minnesota under section 290.17.
3.26 	(b) Notwithstanding paragraph (a), nonresident taxpayers may elect to defer recognizing 
3.27 	unrecognized installment sale gains by making an election under this paragraph. The election 
3.28 	must be filed on a form to be determined or prescribed by the commissioner and must be 
3.29 	filed by the due date of the individual income tax return, including any extension. Electing 
3.30 	taxpayers must make an irrevocable agreement to:
3.31 	(1) file Minnesota tax returns in all subsequent years when gains from the installment 
3.32 	sales are recognized and reported to the Internal Revenue Service;
4.1 	(2) allocate gains to the state of Minnesota as though the gains were realized in the year 
4.2 	of sale under section 290.17, 290.191, or 290.20; and
4.3 	(3) include all relevant federal tax documents reporting the installment sale with 
4.4 	subsequent Minnesota tax returns.
4.5 	(c) Income or gain recognized for Minnesota purposes pursuant to paragraph (a) must 
4.6 	be excluded from taxable net income in any future year that the taxpayer files a Minnesota 
4.7 	tax return to the extent that the income or gain has already been subject to tax pursuant to 
4.8 	paragraph (a).

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

4.10 	Sec. 3. Minnesota Statutes 2018, section 290.06, subdivision 2c, is amended to read:
4.11 		Subd. 2c.Schedules of rates for individuals, estates, and trusts. (a) The income taxes 
4.12 	imposed by this chapter upon married individuals filing joint returns and surviving spouses 
4.13 	as defined in section 2(a) of the Internal Revenue Code must be computed by applying to 
4.14 	their taxable net income the following schedule of rates:
4.15 	(1) On the first $35,480, 5.35 percent;
4.16 	(2) On all over $35,480, but not over $140,960, 7.05 percent;
4.17 	(3) On all over $140,960, but not over $250,000, 7.85 percent;
4.18 	(4) On all over $250,000, 9.85 percent.
4.19 	Married individuals filing separate returns, estates, and trusts must compute their income 
4.20 	tax by applying the above rates to their taxable income, except that the income brackets 
4.21 	will be one-half of the above amounts after the adjustment required in subdivision 2d.
4.22 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
4.23 	computed by applying to taxable net income the following schedule of rates:
4.24 	(1) On the first $24,270, 5.35 percent;
4.25 	(2) On all over $24,270, but not over $79,730, 7.05 percent;
4.26 	(3) On all over $79,730, but not over $150,000, 7.85 percent;
4.27 	(4) On all over $150,000, 9.85 percent.
4.28 	(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as 
4.29 	a head of household as defined in section 2(b) of the Internal Revenue Code must be 
4.30 	computed by applying to taxable net income the following schedule of rates:
5.1 	(1) On the first $29,880, 5.35 percent;
5.2 	(2) On all over $29,880, but not over $120,070, 7.05 percent;
5.3 	(3) On all over $120,070, but not over $200,000, 7.85 percent;
5.4 	(4) On all over $200,000, 9.85 percent.
5.5 	(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax 
5.6 	of any individual taxpayer whose taxable net income for the taxable year is less than an 
5.7 	amount determined by the commissioner must be computed in accordance with tables 
5.8 	prepared and issued by the commissioner of revenue based on income brackets of not more 
5.9 	than $100. The amount of tax for each bracket shall be computed at the rates set forth in 
5.10 	this subdivision, provided that the commissioner may disregard a fractional part of a dollar 
5.11 	unless it amounts to 50 cents or more, in which case it may be increased to $1.
5.12 	(e) An individual who is not a Minnesota resident for the entire year must compute the 
5.13 	individual's Minnesota income tax as provided in this subdivision. After the application of 
5.14 	the nonrefundable credits provided in this chapter, the tax liability must then be multiplied 
5.15 	by a fraction in which:
5.16 	(1) the numerator is the individual's Minnesota source federal adjusted gross income as 
5.17 	defined in section 62 of the Internal Revenue Code and increased by:
5.18 	(i) the additions required under section sections290.0131, subdivisions 2 and 6 to 11,
5.19 	and 290.0137, paragraph (a); and reduced by
5.20 	(ii) the Minnesota assignable portion of the subtraction for United States government 
5.21 	interest under section 290.0132, subdivision 2, and the subtractions under section sections
5.22 	290.0132, subdivisions 9, 10, 14, 15, 17, and 18, and 290.0137, paragraph (c), after applying 
5.23 	the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and
5.24 	(2) the denominator is the individual's federal adjusted gross income as defined in section 
5.25 	62 of the Internal Revenue Code, increased by:
5.26 	(i) the amounts specified in section additions required under sections290.0131, 
5.27 	subdivisions 2 and 6 to 11, and 290.0137, paragraph (a); and reduced by
5.28 	(ii) the amounts specified in section subtractions under sections290.0132, subdivisions 
5.29 	2, 9, 10, 14, 15, 17, and 18, and 290.0137, paragraph (c).

5.30 	EFFECTIVE DATE. The amendment to paragraph (a) is effective for taxable years 
5.31 	beginning after December 31, 2018. The amendment to paragraph (e) is effective the day 
5.32 	following final enactment.

6.1 	Sec. 4. Minnesota Statutes 2018, section 290.06, subdivision 2d, is amended to read:
6.2 		Subd. 2d.Inflation adjustment of brackets. (a) For taxable years beginning after 
6.3 	December 31, 2013, the minimum and maximum dollar amounts for each rate bracket for 
6.4 	which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage 
6.5 	determined under paragraph (b). For the purpose of making the adjustment as provided in 
6.6 	this subdivision all of the rate brackets provided in subdivision 2c shall be the rate brackets 
6.7 	as they existed for taxable years beginning after December 31, 2012, and before January 1, 
6.8 	2014. The rate applicable to any rate bracket must not be changed. The dollar amounts 
6.9 	setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate 
6.10 	brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in 
6.11 	$5, it must be rounded up to the nearest $10 amount.
6.12 	(b) The commissioner shall adjust the rate brackets and by the percentage determined 
6.13 	pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section 
6.14 	1(f)(3)(B) the word "2012" shall be substituted for the word "1992." For 2014, the 
6.15 	commissioner shall then determine the percent change from the 12 months ending on August 
6.16 	31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent year, from 
6.17 	the 12 months ending on August 31, 2012, to the 12 months ending on August 31 of the 
6.18 	year preceding the taxable year. The commissioner shall determine the rate bracket for 
6.19 	married filing separate returns after this adjustment is done. The rate bracket for married 
6.20 	filing separate must be one-half of the rate bracket for married filing joint. The determination 
6.21 	of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall 
6.22 	not be subject to the Administrative Procedure Act contained in chapter 14.
6.23 	No later than December 15 of each year, the commissioner shall announce the specific 
6.24 	percentage that will be used to adjust the tax rate brackets.

6.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.26 	31, 2018.

6.27 	ARTICLE 2
6.28 	DEPARTMENT OF REVENUE INDIVIDUAL INCOME AND CORPORATE 
6.29 	FRANCHISE TAXES: TECHNICAL CHANGES

6.30 	Section 1. Minnesota Statutes 2018, section 289A.38, subdivision 7, is amended to read:
6.31 		Subd. 7.Federal tax changes. (a) If the amount of income, items of tax preference, 
6.32 	deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any 
6.33 	period, as reported to the Internal Revenue Service is changed or corrected by the 
6.34 	commissioner of Internal Revenue or other officer of the United States or other competent 
7.1 	authority, or where a renegotiation of a contract or subcontract with the United States results 
7.2 	in a change in income, items of tax preference, deductions, credits, or withholding tax, or, 
7.3 	in the case of estate tax, where there are adjustments to the taxable estate, the taxpayer shall 
7.4 	report the change or correction or renegotiation results in writing to the commissioner. The 
7.5 	report must be submitted within 180 days after the final determination and must be in the 
7.6 	form of either an amended Minnesota estate, withholding tax, corporate franchise tax, or 
7.7 	income tax return conceding the accuracy of the federal determination or a letter detailing 
7.8 	how the federal determination is incorrect or does not change the Minnesota tax. An amended 
7.9 	Minnesota income tax return must be accompanied by an amended property tax refund 
7.10 	return, if necessary. A taxpayer filing an amended federal tax return must also file a copy 
7.11 	of the amended return with the commissioner of revenue within 180 days after filing the 
7.12 	amended return.
7.13 	(b) For the purposes of paragraph (a), a change or correction includes any case where a 
7.14 	taxpayer reaches a closing agreement or compromise with the Internal Revenue Service 
7.15 	under section 7121 or 7122 of the Internal Revenue Code.

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

7.17 	Sec. 2. Minnesota Statutes 2018, section 290.92, subdivision 28, is amended to read:
7.18 		Subd. 28.Payments to horse racing license holders. Effective with payments made 
7.19 	after April 1, 1988, any holder of a license issued by the Minnesota Racing Commission 
7.20 	who makes a payment for personal or professional services to a holder of a class C license 
7.21 	issued by the commission, except an amount paid as a purse, shall deduct from the payment 
7.22 	and withhold 6.25 percent of the amount as Minnesota withholding tax when the amount 
7.23 	paid to that individual by the same person during the calendar year exceeds $600. For 
7.24 	purposes of the provisions of this section, a payment to any person which is subject to 
7.25 	withholding under this subdivision must be treated as if the payment was a wage paid by 
7.26 	an employer to an employee. Every individual who is to receive a payment which is subject 
7.27 	to withholding under this subdivision shall furnish the license holder with a statement, made 
7.28 	under the penalties of perjury, containing the name, address, and Social Security account 
7.29 	number of the person receiving the payment. No withholding is required if the individual 
7.30 	presents a signed certificate from the individual's employer which states that the individual 
7.31 	is an employee of that employer. A nonresident individual who holds a class C license must 
7.32 	be treated as an athlete for purposes of applying the provisions of subdivision 4a and section 
7.33 	290.17, subdivision 2(1)(b)(ii)(a)(2)(ii).

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

8.1 	Sec. 3. Minnesota Statutes 2018, section 462D.03, subdivision 2, is amended to read:
8.2 		Subd. 2.Designation of qualified beneficiary. (a) The account holder must designate 
8.3 	a first-time home buyer as the qualified beneficiary of the account by April 15 of the year
8.4 	in a form and manner prescribed by the commissioner following the taxable year in which 
8.5 	the account was established. The account holder may be the qualified beneficiary. The 
8.6 	account holder may change the designated qualified beneficiary at any time, but no more 
8.7 	than one qualified beneficiary may be designated for an account at any one time. For purposes 
8.8 	of the one beneficiary restriction, a married couple qualifies as one beneficiary. Changing 
8.9 	the designated qualified beneficiary of an account does not affect computation of the ten-year 
8.10 	period under section 462D.06, subdivision 2.
8.11 	(b) The commissioner shall establish a process for account holders to notify the state 
8.12 	that permits recording of the account, the account holder or holders, any transfers under 
8.13 	section 462D.04, subdivision 2, and the designated qualified beneficiary for each account. 
8.14 	This may be done upon filing the account holder's income tax return or in any other way 
8.15 	the commissioner determines to be appropriate.

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

8.17 	ARTICLE 3
8.18 	DEPARTMENT OF REVENUE; SALES AND USE TAXES; TECHNICAL CHANGES

8.19 	Section 1. Minnesota Statutes 2018, section 297A.68, subdivision 17, is amended to read:
8.20 		Subd. 17.Ships used in interstate commerce; other vessels. Repair, replacement, and 
8.21 	rebuilding parts and materials, and lubricants, for the following are exempt:
8.22 	(1) ships or vessels used or to be used principally in interstate or foreign commerce are 
8.23 	exempt.; and
8.24 	(2) vessels with a gross registered tonnage of at least 3,000 tons are exempt.

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

8.26 	Sec. 2. Minnesota Statutes 2018, section 297A.68, subdivision 42, is amended to read:
8.27 		Subd. 42.Qualified data centers. (a) Purchases of enterprise information technology 
8.28 	equipment and computer software for use in a qualified data center, or a qualified refurbished 
8.29 	data center, are exempt, except that computer software maintenance agreements are exempt 
8.30 	for purchases made after June 30, 2013. The tax on purchases exempt under this paragraph 
8.31 	must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied, 
9.1 	and then refunded after June 30, 2013, in the manner provided in section 297A.75. This 
9.2 	exemption includes enterprise information technology equipment and computer software 
9.3 	purchased to replace or upgrade enterprise information technology equipment and computer 
9.4 	software in a qualified data center, or a qualified refurbished data center.
9.5 	(b) Electricity used or consumed in the operation of a qualified data center or qualified 
9.6 	refurbished data center is exempt.
9.7 	(c) For purposes of this subdivision, "qualified data center" means a facility in Minnesota:
9.8 	(1) that is comprised of one or more buildings that consist in the aggregate of at least 
9.9 	25,000 square feet, and that are located on a single parcel or on contiguous parcels, where 
9.10 	the total cost of construction or refurbishment, investment in enterprise information 
9.11 	technology equipment, and computer software is at least $30,000,000 within a 48-month 
9.12 	period. The 48-month period begins no sooner than July 1, 2012, except that costs for 
9.13 	computer software maintenance agreements purchased before July 1, 2013, are not included 
9.14 	in determining if the $30,000,000 threshold has been met;
9.15 	(2) that is constructed or substantially refurbished after June 30, 2012, where 
9.16 	"substantially refurbished" means that at least 25,000 square feet have been rebuilt or 
9.17 	modified, including:
9.18 	(i) installation of enterprise information technology equipment; environmental control, 
9.19 	computer software, and energy efficiency improvements; and
9.20 	(ii) building improvements; and
9.21 	(3) that is used to house enterprise information technology equipment, where the facility 
9.22 	has the following characteristics:
9.23 	(i) uninterruptible power supplies, generator backup power, or both;
9.24 	(ii) sophisticated fire suppression and prevention systems; and
9.25 	(iii) enhanced security. A facility will be considered to have enhanced security if it has 
9.26 	restricted access to the facility to selected personnel; permanent security guards; video 
9.27 	camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans, 
9.28 	such as hand scans and retinal or fingerprint recognition; or similar security features.
9.29 	In determining whether the facility has the required square footage, the square footage 
9.30 	of the following spaces shall be included if the spaces support the operation of enterprise 
9.31 	information technology equipment: office space, meeting space, and mechanical and other 
9.32 	support facilities. For purposes of this subdivision, "computer software" includes, but is not 
10.1 	limited to, software utilized or loaded at a qualified data center or qualified refurbished data 
10.2 	center, including maintenance, licensing, and software customization.
10.3 	(d) For purposes of this subdivision, a "qualified refurbished data center" means an 
10.4 	existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but 
10.5 	that is comprised of one or more buildings that consist in the aggregate of at least 25,000 
10.6 	square feet, and that are located on a single parcel or contiguous parcels, where the total 
10.7 	cost of construction or refurbishment, investment in enterprise information technology 
10.8 	equipment, and computer software is at least $50,000,000 within a 24-month period.
10.9 	(e) For purposes of this subdivision, "enterprise information technology equipment" 
10.10 	means computers and equipment supporting computing, networking, or data storage, 
10.11 	including servers and routers. It includes, but is not limited to: cooling systems, cooling 
10.12 	towers, and other temperature control infrastructure; power infrastructure for transformation, 
10.13 	distribution, or management of electricity used for the maintenance and operation of a 
10.14 	qualified data center or qualified refurbished data center, including but not limited to exterior 
10.15 	dedicated business-owned substations, backup power generation systems, battery systems, 
10.16 	and related infrastructure; and racking systems, cabling, and trays, which are necessary for 
10.17 	the maintenance and operation of the qualified data center or qualified refurbished data 
10.18 	center.
10.19 	(f) A qualified data center or qualified refurbished data center may claim the exemptions 
10.20 	in this subdivision for purchases made either within 20 years of the date of its first purchase 
10.21 	qualifying for the exemption under paragraph (a), or by June 30, 2042, whichever is earlier.
10.22 	(g) The purpose of this exemption is to create jobs in the construction and data center 
10.23 	industries.
10.24 	(h) This subdivision is effective for sales and purchases made before July 1, 2042.
10.25 	(i) The commissioner of employment and economic development must certify to the 
10.26 	commissioner of revenue, in a format approved by the commissioner of revenue, when a 
10.27 	qualified data center has met the requirements under paragraph (c) or a qualified refurbished 
10.28 	data center has met the requirements under paragraph (d). The certification must provide 
10.29 	the following information regarding each qualified data center or qualified refurbished data 
10.30 	center:
10.31 	(1) the total square footage amount;
11.1 	(2) the total amount of construction or refurbishment costs and the total amount of 
11.2 	qualifying investments in enterprise information technology equipment and computer 
11.3 	software; and
11.4 	(3) the beginning and ending of the applicable period under either paragraph (c) or (d) 
11.5 	in which the qualifying expenditures and purchases under clause (2) were made, but in no 
11.6 	case shall the period begin before July 1, 2012; and
11.7 	(4) the date upon which the qualified data center first met the requirements under 
11.8 	paragraph (c) or a qualified refurbished data center first met the requirements under paragraph 
11.9 	(d).
11.10 	(j) Any refund for sales tax paid on qualifying purchases under this subdivision must 
11.11 	not be issued unless the commissioner of revenue has received the certification required 
11.12 	under paragraph (i) either from issued by the commissioner of employment and economic 
11.13 	development or the qualified data center or qualified refurbished data center claiming the 
11.14 	refund; and.
11.15 	(k) The commissioner of employment and economic development must annually notify 
11.16 	the commissioner of revenue of the qualified data centers that are projected to meet the 
11.17 	requirements under paragraph (c) and the qualified refurbished data centers that are projected 
11.18 	to meet the requirements under paragraph (d) in each of the next four years. The notification 
11.19 	must provide the information required under paragraph (i), clauses (1) to (3) (4), for each 
11.20 	qualified data center or qualified refurbished data center.

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

11.22 	Sec. 3. Minnesota Statutes 2018, section 297A.68, subdivision 44, is amended to read:
11.23 		Subd. 44.Greater Minnesota business expansions. (a) Purchases and use of tangible 
11.24 	personal property or taxable services by a qualified business, as defined in section 116J.8738,
11.25 	are exempt if:
11.26 	(1) the commissioner of employment and economic development certifies to the 
11.27 	commissioner of revenue, in a format approved by the commissioner of revenue, that the 
11.28 	qualified business meets the requirements under section 116J.8738;
11.29 	(2) the business subsidy agreement provides that the exemption under this subdivision 
11.30 	applies;
11.31 	(2) (3) the property or services are primarily used or consumed at the facility in greater 
11.32 	Minnesota identified in the business subsidy agreement; and
12.1 	(3) (4) the purchase was made and delivery received during the duration of the 
12.2 	certification of the business as a qualified business under section 116J.8738 business subsidy 
12.3 	agreement.
12.4 	(b) Purchase and use of construction materials and supplies used or consumed in, and 
12.5 	equipment incorporated into, the construction of improvements to real property in greater 
12.6 	Minnesota are exempt if the improvements after completion of construction are to be used 
12.7 	in the conduct of the trade or business of the qualified business, as defined in section 
12.8 	116J.8738 and the commissioner of employment and economic development certifies to 
12.9 	the commissioner of revenue, in a format approved by the commissioner of revenue, that 
12.10 	the qualified business meets the requirements under section 116J.8738. This exemption 
12.11 	applies regardless of whether the purchases are made by the business or a contractor.
12.12 	(c) The exemptions under this subdivision apply to a local sales and use tax.
12.13 	(d) The tax on purchases imposed under this subdivision must be imposed and collected 
12.14 	as if the rate under section 297A.62 applied, and then refunded in the manner provided in 
12.15 	section 297A.75. The total amount refunded for a facility over the certification period is 
12.16 	limited to the amount listed in the business subsidy agreement. No more than $7,000,000 
12.17 	may be refunded in a fiscal year for all purchases under this subdivision. Refunds must be 
12.18 	allocated on a first-come, first-served basis. If more than $7,000,000 of eligible claims are 
12.19 	made in a fiscal year, claims by qualified businesses carry over to the next fiscal year, and 
12.20 	the commissioner of revenue must first allocate refunds to qualified businesses eligible for 
12.21 	a refund in the preceding fiscal year. Any portion of the balance of funds allocated for 
12.22 	refunds under this paragraph does not cancel and shall be carried forward to and available 
12.23 	for refunds in subsequent fiscal years. Notwithstanding section 297A.75, subdivision 4, for 
12.24 	an eligible refund claim that carries over to a subsequent fiscal year, the interest on the 
12.25 	amount carried over must be paid on the refund no sooner than from 90 days after July 1 
12.26 	of the fiscal year in which funds are available for the eligible claim.

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

12.28 	Sec. 4. Minnesota Statutes 2018, section 297A.71, subdivision 45, is amended to read:
12.29 		Subd. 45.Biopharmaceutical manufacturing facility. (a) Materials and supplies used 
12.30 	or consumed in, capital equipment incorporated into, and privately owned infrastructure in 
12.31 	support of the construction, improvement, or expansion of a biopharmaceutical manufacturing 
12.32 	facility in the state are exempt if the commissioner of employment and economic 
12.33 	development certifies to the commissioner of revenue that the following criteria are met:
13.1 	(1) the facility is used for the manufacturing of biologics;
13.2 	(2) the total capital investment made at the facility exceeds $50,000,000; and
13.3 	(3) the facility creates and maintains at least 190 full-time equivalent positions at the 
13.4 	facility. These positions must be new jobs in Minnesota and not the result of relocating jobs 
13.5 	that currently exist in Minnesota.
13.6 	(b) The tax must be imposed and collected as if the rate under section 297A.62 applied, 
13.7 	and refunded in the manner provided in section 297A.75.
13.8 	(c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing facility 
13.9 	must:
13.10 	(1) initially apply to the Department commissioner of employment and economic 
13.11 	development for certification no later than one year from the final completion date of 
13.12 	construction, improvement, or expansion of the facility; and
13.13 	(2) for each year that the owner of the biopharmaceutical manufacturing facility applies 
13.14 	for a refund, the owner commissioner of revenue must have received written certification 
13.15 	from the Department commissioner of employment and economic development that the 
13.16 	facility has met the criteria of paragraph (a).
13.17 	(d) The refund is to be paid annually at a rate of 25 percent of the total allowable refund 
13.18 	payable to date, with the commissioner making annual payments of the remaining refund 
13.19 	until all of the refund has been paid.
13.20 	(e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are 
13.21 	interchangeable and mean medical drugs or medicinal preparations produced using 
13.22 	technology that uses biological systems, living organisms, or derivatives of living organisms 
13.23 	to make or modify products or processes for specific use. The medical drugs or medicinal 
13.24 	preparations include but are not limited to proteins, antibodies, nucleic acids, and vaccines.

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

13.26 	Sec. 5. Minnesota Statutes 2018, section 297A.77, is amended by adding a subdivision to 
13.27 	read:
13.28 		Subd. 5.Records must be kept. Every person liable for any tax imposed by this chapter, 
13.29 	or for the collection thereof, shall keep such records, render such statements, make such 
13.30 	returns, and comply with such rules, as the commissioner may from time to time prescribe.

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

14.1 	ARTICLE 4
14.2 	MINNESOTACARE; TECHNICAL CHANGES

14.3 	Section 1. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision 
14.4 	to read:
14.5 		Subd. 2b.Emergency medical reasons. "Emergency medical reasons" means a public 
14.6 	health emergency declaration pursuant to United States Code, title 42, section 247d; a 
14.7 	national security or peacetime emergency declared by the governor pursuant to section 
14.8 	12.31; or a situation involving an action by the commissioner of health pursuant to section 
14.9 	144.4197, 144.4198, or 151.37, subdivisions 2, paragraph (b), and 10, except that, for 
14.10 	purposes of this subdivision, a drug shortage not caused by a public health emergency shall 
14.11 	not constitute an emergency medical reason.

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

14.13 	Sec. 2. Minnesota Statutes 2018, section 295.50, subdivision 3, is amended to read:
14.14 		Subd. 3.Gross revenues. "Gross revenues" are total amounts received in money or 
14.15 	otherwise by:
14.16 	(1) a hospital for patient services;
14.17 	(2) a surgical center for patient services;
14.18 	(3) a health care provider, other than a staff model health carrier plan company, for 
14.19 	patient services;
14.20 	(4) a wholesale drug distributor for sale or distribution of legend drugs that are delivered 
14.21 	in Minnesota by the wholesale drug distributor, by common carrier, or by mail, unless the 
14.22 	legend drugs are delivered to another wholesale drug distributor who sells legend drugs 
14.23 	exclusively at wholesale. Legend drugs do not include nutritional products as defined in 
14.24 	Minnesota Rules, part 9505.0325, and blood and blood components; and
14.25 	(5) a staff model health plan company as gross premiums for enrollees, co-payments, 
14.26 	deductibles, coinsurance, and fees for patient services.

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

14.28 	Sec. 3. Minnesota Statutes 2018, section 295.50, subdivision 4, is amended to read:
14.29 		Subd. 4.Health care provider. (a) "Health care provider" means:
15.1 	(1) a person whose health care occupation is regulated or required to be regulated by 
15.2 	the state of Minnesota furnishing any or all of the following goods or services directly to a 
15.3 	patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services, 
15.4 	drugs, laboratory, diagnostic or therapeutic services;
15.5 	(2) a person who provides goods and services not listed in clause (1) that qualify for 
15.6 	reimbursement under the medical assistance program provided under chapter 256B;
15.7 	(3) a staff model health plan company;
15.8 	(4) an ambulance service required to be licensed; or
15.9 	(5) a person who sells or repairs hearing aids and related equipment or prescription 
15.10 	eyewear.; or
15.11 	(6) a person providing patient services, who does not otherwise meet the definition of 
15.12 	health care provider and is not specifically excluded in clause (b), who employs or contracts 
15.13 	with a health care provider as defined in clauses (1) to (5) to perform, supervise, otherwise 
15.14 	oversee, or consult with regarding patient services.
15.15 	(b) Health care provider does not include:
15.16 	(1) hospitals; medical supplies distributors, except as specified under paragraph (a), 
15.17 	clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction; 
15.18 	wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation, 
15.19 	or any other providers of transportation services other than ambulance services required to 
15.20 	be licensed; supervised living facilities for persons with developmental disabilities, licensed 
15.21 	under Minnesota Rules, parts 4665.0100 to 4665.9900; housing with services establishments 
15.22 	required to be registered under chapter 144D; board and lodging establishments providing 
15.23 	only custodial services that are licensed under chapter 157 and registered under section 
15.24 	157.17 to provide supportive services or health supervision services; adult foster homes as 
15.25 	defined in Minnesota Rules, part 9555.5105; day training and habilitation services for adults 
15.26 	with developmental disabilities as defined in section 252.41, subdivision 3; boarding care 
15.27 	homes, as defined in Minnesota Rules, part 4655.0100; and adult day care centers as defined 
15.28 	in Minnesota Rules, part 9555.9600;
15.29 	(2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 15; a 
15.30 	person providing personal care services and supervision of personal care services as defined 
15.31 	in Minnesota Rules, part 9505.0335; a person providing home care nursing services as 
15.32 	defined in Minnesota Rules, part 9505.0360; and home care providers required to be licensed 
15.33 	under chapter 144A for home care services provided under chapter 144A;
16.1 	(3) a person who employs health care providers solely for the purpose of providing 
16.2 	patient services to its employees;
16.3 	(4) an educational institution that employs health care providers solely for the purpose 
16.4 	of providing patient services to its students if the institution does not receive fee for service 
16.5 	payments or payments for extended coverage; and
16.6 	(5) a person who receives all payments for patient services from health care providers, 
16.7 	surgical centers, or hospitals for goods and services that are taxable to the paying health 
16.8 	care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision 
16.9 	1, paragraph (b), clause (3) or (4), or from a source of funds that is exempt from tax under 
16.10 	this chapter.

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

16.12 	Sec. 4. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision to 
16.13 	read:
16.14 		Subd. 7a.Manufacturer. "Manufacturer" has the meaning provided in section 151.01, 
16.15 	subdivision 14a.

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

16.17 	Sec. 5. Minnesota Statutes 2018, section 295.50, subdivision 9b, is amended to read:
16.18 		Subd. 9b.Patient services. (a) "Patient services" means inpatient and outpatient services 
16.19 	and other goods and services provided by hospitals, surgical centers, or health care providers. 
16.20 	They include the following health care goods and services provided to a patient or consumer:
16.21 	(1) bed and board;
16.22 	(2) nursing services and other related services;
16.23 	(3) use of hospitals, surgical centers, or health care provider facilities;
16.24 	(4) medical social services;
16.25 	(5) drugs, biologicals, supplies, appliances, and equipment;
16.26 	(6) other diagnostic or therapeutic items or services;
16.27 	(7) medical or surgical services;
16.28 	(8) items and services furnished to ambulatory patients not requiring emergency care; 
16.29 	and
17.1 	(9) emergency services.
17.2 	(b) "Patient services" does not include:
17.3 	(1) services provided to nursing homes licensed under chapter 144A;
17.4 	(2) examinations for purposes of utilization reviews, insurance claims or eligibility, 
17.5 	litigation, and employment, including reviews of medical records for those purposes;
17.6 	(3) services provided to and by community residential mental health facilities licensed 
17.7 	under Minnesota Rules, parts 9520.0500 to 9520.0670, and to and by residential treatment 
17.8 	programs for children with severe emotional disturbance licensed or certified under chapter 
17.9 	245A;
17.10 	(4) services provided to and by community support programs and family community 
17.11 	support programs approved under Minnesota Rules, parts 9535.1700 to 9535.1760, or 
17.12 	certified as mental health rehabilitative services under chapter 256B; under the following 
17.13 	programs: day treatment services as defined in section 245.462, subdivision 8; assertive 
17.14 	community treatment as described in section 256B.0622; adult rehabilitative mental health 
17.15 	services as described in section 256B.0623; adult crisis response services as described in 
17.16 	section 256B.0624; children's therapeutic services and supports as described in section 
17.17 	256B.0943; and children's mental health crisis response services as described in section 
17.18 	256B.0944;
17.19 	(5) services provided to and by community mental health centers as defined in section 
17.20 	245.62, subdivision 2;
17.21 	(6) services provided to and by assisted living programs and congregate housing 
17.22 	programs;
17.23 	(7) hospice care services;
17.24 	(8) home and community-based waivered services under sections 256B.0915, 256B.49, 
17.25 	and 256B.501;
17.26 	(9) targeted case management services under sections 256B.0621; 256B.0625, 
17.27 	subdivisions 20, 20a, 33, and 44; and 256B.094; and
17.28 	(10) services provided to the following: supervised living facilities for persons with 
17.29 	developmental disabilities licensed under Minnesota Rules, parts 4665.0100 to 4665.9900; 
17.30 	housing with services establishments required to be registered under chapter 144D; board 
17.31 	and lodging establishments providing only custodial services that are licensed under chapter 
17.32 	157 and registered under section 157.17 to provide supportive services or health supervision 
18.1 	services; adult foster homes as defined in Minnesota Rules, part 9555.5105; day training 
18.2 	and habilitation services for adults with developmental disabilities as defined in section 
18.3 	252.41, subdivision 3; boarding care homes as defined in Minnesota Rules, part 4655.0100; 
18.4 	adult day care services as defined in section 245A.02, subdivision 2a; and home health 
18.5 	agencies as defined in Minnesota Rules, part 9505.0175, subpart 15, or licensed under 
18.6 	chapter 144A.

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

18.8 	Sec. 6. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision to 
18.9 	read:
18.10 		Subd. 10c.Pharmacy benefits manager. "Pharmacy benefits manager" means an entity 
18.11 	that performs pharmacy benefits management.

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

18.13 	Sec. 7. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision to 
18.14 	read:
18.15 		Subd. 13a.Third-party purchaser of health care services. "Third-party purchaser of 
18.16 	health care services" includes but is not limited to a health carrier or community integrated 
18.17 	service network that pays for health care services on behalf of patients or that reimburses, 
18.18 	indemnifies, compensates, or otherwise insures patients for health care services.

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

18.20 	Sec. 8. Minnesota Statutes 2018, section 295.50, subdivision 14, is amended to read:
18.21 		Subd. 14.Wholesale drug distributor. "Wholesale drug distributor" means a wholesale 
18.22 	drug distributor required to be licensed under sections 151.42 to 151.51. any person engaged 
18.23 	in wholesale drug distribution including but not limited to manufacturers; repackagers; 
18.24 	own-label distributors; jobbers; brokers; warehouses, including manufacturers' and 
18.25 	distributors' warehouses, chain drug warehouses, and wholesale drug warehouses; 
18.26 	independent wholesale drug traders; and pharmacies that conduct wholesale drug distribution. 
18.27 	A wholesale drug distributor does not include a common carrier or individual hired primarily 
18.28 	to transport legend drugs.

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

19.1 	Sec. 9. Minnesota Statutes 2018, section 295.50, subdivision 15, is amended to read:
19.2 		Subd. 15.Legend drug. "Legend drug" means a drug that is required by federal law to 
19.3 	bear one of the following statements: "Caution: Federal law prohibits dispensing without 
19.4 	prescription" or "Rx only." Legend drugs do not include nutritional products as defined in 
19.5 	Minnesota Rules, part 9505.0325, subpart 1, and blood and blood components.

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

19.7 	Sec. 10. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision to 
19.8 	read:
19.9 		Subd. 16.Wholesale drug distribution. "Wholesale drug distribution" means the sale 
19.10 	or distribution of legend drugs to a person other than a consumer or patient, but does not 
19.11 	include:
19.12 	(1) a sale between a division, subsidiary, parent, affiliated, or related company under 
19.13 	the common ownership and control of a corporate entity;
19.14 	(2) the purchase or other acquisition, by a hospital or other health care entity that is a 
19.15 	member of a group purchasing organization, of a legend drug for its own use from the 
19.16 	organization or from other hospitals or health care entities that are members of such 
19.17 	organizations;
19.18 	(3) the sale, purchase, or trade of a legend drug by a charitable organization described 
19.19 	in section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 
19.20 	31, 1988, to a nonprofit affiliate of the organization to the extent otherwise permitted by 
19.21 	law;
19.22 	(4) the sale, purchase, or trade of a legend drug among hospitals or other health care 
19.23 	entities that are under common control;
19.24 	(5) the sale, purchase, or trade of a legend drug for emergency medical reasons;
19.25 	(6) the transfer of legend drugs by a retail pharmacy to another retail pharmacy to alleviate 
19.26 	a temporary shortage; or
19.27 	(7) the distribution of legend drug samples by manufacturer representatives.

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

20.1 	Sec. 11. Minnesota Statutes 2018, section 295.53, subdivision 1, is amended to read:
20.2 		Subdivision 1.Exclusions and Exemptions. (a) The following payments are excluded 
20.3 	from the gross revenues subject to the hospital, surgical center, or health care provider taxes 
20.4 	under sections 295.50 to 295.59:
20.5 	(1) payments received for services provided under the Medicare program, including 
20.6 	payments received from the government, and organizations governed by sections 1833 and 
20.7 	1876 of title XVIII of the federal Social Security Act, United States Code, title 42, section 
20.8 	1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the Medicare 
20.9 	enrollee or by a Medicare supplemental coverage as defined in section 62A.011, subdivision 
20.10 	3, clause (10), or by Medicaid payments under title XIX of the federal Social Security Act. 
20.11 	Payments for services not covered by Medicare are taxable;
20.12 	(2) payments received for home health care services;
20.13 	(3) payments received from hospitals or surgical centers for goods and services on which 
20.14 	liability for tax is imposed under section 295.52 or the source of funds for the payment is 
20.15 	exempt under clause (1), (7), (10), or (14);
20.16 	(4) payments received from health care providers for goods and services on which 
20.17 	liability for tax is imposed under this chapter or the source of funds for the payment is 
20.18 	exempt under clause (1), (7), (10), or (14);
20.19 	(5) amounts paid for legend drugs, other than nutritional products and blood and blood 
20.20 	components, to a wholesale drug distributor who is subject to tax under section 295.52, 
20.21 	subdivision 3, reduced by reimbursements received for legend drugs otherwise exempt 
20.22 	under this chapter;
20.23 	(6) (1) payments received by a health care provider or the wholly owned subsidiary of 
20.24 	a health care provider for care provided outside Minnesota;
20.25 	(7) payments received from the chemical dependency fund under chapter 254B;
20.26 	(8) payments received in the nature of charitable donations that are not designated for 
20.27 	providing patient services to a specific individual or group;
20.28 	(9) payments received for providing patient services incurred through a formal program 
20.29 	of health care research conducted in conformity with federal regulations governing research 
20.30 	on human subjects. Payments received from patients or from other persons paying on behalf 
20.31 	of the patients are subject to tax;
21.1 	(10) payments received from any governmental agency for services benefiting the public, 
21.2 	not including payments made by the government in its capacity as an employer or insurer 
21.3 	or payments made by the government for services provided under the MinnesotaCare 
21.4 	program or the medical assistance program governed by title XIX of the federal Social 
21.5 	Security Act, United States Code, title 42, sections 1396 to 1396v;
21.6 	(11) (2) government payments received by the commissioner of human services for 
21.7 	state-operated services;
21.8 	(12) (3) payments received by a health care provider for hearing aids and related 
21.9 	equipment or prescription eyewear delivered outside of Minnesota; and
21.10 	(13) (4) payments received by an educational institution from student tuition, student 
21.11 	activity fees, health care service fees, government appropriations, donations, or grants, and 
21.12 	for services identified in and provided under an individualized education program as defined 
21.13 	in section 256B.0625 or Code of Federal Regulations, chapter 34, section 300.340(a). Fee 
21.14 	for service payments and payments for extended coverage are taxable;.
21.15 	(14) payments received under the federal Employees Health Benefits Act, United States 
21.16 	Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990. 
21.17 	Enrollee deductibles, coinsurance, and co-payments are subject to tax; and
21.18 	(15) payments received under the federal Tricare program, Code of Federal Regulations, 
21.19 	title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and co-payments are subject 
21.20 	to tax.
21.21 	(b) The following payments are exempted from the gross revenues subject to hospital, 
21.22 	surgical center, or health care provider taxes under sections 295.50 to 295.59:
21.23 	(1) payments received for services provided under the Medicare program, including 
21.24 	payments received from the government and organizations governed by sections 1833, 
21.25 	1853, and 1876 of title XVIII of the federal Social Security Act, United States Code, title 
21.26 	42, section 1395; and enrollee deductibles, co-insurance, and co-payments, whether paid 
21.27 	by the Medicare enrollee, by Medicare supplemental coverage as described in section 
21.28 	62A.011, subdivision 3, clause (10), or by Medicaid payments under title XIX of the federal 
21.29 	Social Security Act. Payments for services not covered by Medicare are taxable;
21.30 	(2) payments received for home health care services;
21.31 	(3) payments received from hospitals or surgical centers for goods and services on which 
21.32 	liability for tax is imposed under section 295.52 or the source of funds for the payment is 
21.33 	exempt under clauses (1), (6), (9), (10), or (11);
22.1 	(4) payments received from the health care providers for goods and services on which 
22.2 	liability for tax is imposed under this chapter or the source of funds for the payment is 
22.3 	exempt under clause (1), (6), (9), (10), or (11);
22.4 	(5) amounts paid for legend drugs to a wholesale drug distributor who is subject to tax 
22.5 	under section 295.52, subdivision 3, reduced by reimbursement received for legend drugs 
22.6 	otherwise exempt under this chapter;
22.7 	(6) payments received from the chemical dependency fund under chapter 254B;
22.8 	(7) payments received in the nature of charitable donations that are not designated for 
22.9 	providing patient services to a specific individual or group;
22.10 	(8) payments received for providing patient services incurred through a formal program 
22.11 	of health care research conducted in conformity with federal regulations governing research 
22.12 	on human subjects. Payments received from patients or from other persons paying on behalf 
22.13 	of the patients are subject to tax;
22.14 	(9) payments received from any governmental agency for services benefiting the public, 
22.15 	not including payments made by the government in its capacity as an employer or insurer 
22.16 	or payments made by the government for services provided under the MinnesotaCare 
22.17 	program or the medical assistance program governed by title XIX of the federal Social 
22.18 	Security Act, United States Code, title 42, section 1396 to 1396v;
22.19 	(10) payments received under the federal Employees Health Benefits Act, United States 
22.20 	Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990. 
22.21 	Enrollee deductibles, co-insurance, and co-payments are subject to tax;
22.22 	(11) payments received under the federal Tricare program, Code of Federal Regulations, 
22.23 	title 32, section 199.17(a)(7). Enrollee deductibles, co-insurance, and co-payments are 
22.24 	subject to tax; and
22.25 	(12) supplemental or enhanced payments authorized under section 256B.196 or 256B.197.
22.26 	(b)(c) Payments received by wholesale drug distributors for legend drugs sold directly 
22.27 	to veterinarians or veterinary bulk purchasing organizations are excluded from the gross 
22.28 	revenues subject to the wholesale drug distributor tax under sections 295.50 to 295.59.
22.29 	(c) Supplemental or enhanced payments authorized under section 256B.19, subdivision 
22.30 	1c, 256B.196, or 256B.197 are excluded from gross revenues subject to the tax under sections 
22.31 	295.50 to 295.59.

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

23.1 	Sec. 12. Minnesota Statutes 2018, section 295.57, subdivision 5, is amended to read:
23.2 		Subd. 5.Exemption for amounts paid for legend drugs. If a hospital, surgical center, 
23.3 	or health care provider cannot determine the actual cost or reimbursement of legend drugs 
23.4 	under the exemption provided in section 295.53, subdivision 1, paragraph (a) (b), clause 
23.5 	(5), the following method must be used:
23.6 	A hospital, surgical center, or health care provider must determine the amount paid for 
23.7 	legend drugs used during the month or quarter and multiply that amount by a ratio, the 
23.8 	numerator of which is the total amount received for taxable patient services, and the 
23.9 	denominator of which is the total amount received for all patient services, including amounts 
23.10 	exempt under section 295.53, subdivision 1, paragraph (b). The result represents the allowable 
23.11 	exemption for the monthly or quarterly cost of drugs.

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

23.13 	Sec. 13. Minnesota Statutes 2018, section 295.582, subdivision 1, is amended to read:
23.14 		Subdivision 1.Tax expense transfer. (a) A hospital, surgical center, or health care 
23.15 	provider that is subject to a tax under section 295.52, or a pharmacy that has paid additional 
23.16 	expense transferred under this section by a wholesale drug distributor, may transfer additional 
23.17 	expense generated by section 295.52 obligations on to all third-party contracts for the 
23.18 	purchase of health care services on behalf of a patient or consumer. Nothing shall prohibit 
23.19 	a pharmacy from transferring the additional expense generated under section 295.52 to a 
23.20 	pharmacy benefits manager. The additional expense transferred to the third-party purchaser 
23.21 	or a pharmacy benefits manager must not exceed the tax percentage specified in section 
23.22 	295.52 multiplied against the gross revenues received under the third-party contract, and 
23.23 	the tax percentage specified in section 295.52 multiplied against co-payments and deductibles 
23.24 	paid by the individual patient or consumer. The expense must not be generated on revenues 
23.25 	derived from payments that are excluded from the tax under section 295.53. All third-party 
23.26 	purchasers of health care services including, but not limited to, third-party purchasers 
23.27 	regulated under chapter 60A, 62A, 62C, 62D, 62H, 62N, 64B, 65A, 65B, 79, or 79A, or 
23.28 	under section 471.61 or 471.617, and pharmacy benefits managers must pay the transferred 
23.29 	expense in addition to any payments due under existing contracts with the hospital, surgical 
23.30 	center, pharmacy, or health care provider, to the extent allowed under federal law. A 
23.31 	third-party purchaser of health care services includes, but is not limited to, a health carrier 
23.32 	or community integrated service network that pays for health care services on behalf of 
23.33 	patients or that reimburses, indemnifies, compensates, or otherwise insures patients for 
23.34 	health care services. For purposes of this section, a pharmacy benefits manager means an 
24.1 	entity that performs pharmacy benefits management. A third-party purchaser or pharmacy 
24.2 	benefits manager shall comply with this section regardless of whether the third-party 
24.3 	purchaser or pharmacy benefits manager is a for-profit, not-for-profit, or nonprofit entity. 
24.4 	A wholesale drug distributor may transfer additional expense generated by section 295.52
24.5 	obligations to entities that purchase from the wholesaler, and the entities must pay the 
24.6 	additional expense. Nothing in this section limits the ability of a hospital, surgical center, 
24.7 	pharmacy, wholesale drug distributor, or health care provider to recover all or part of the 
24.8 	section 295.52 obligation by other methods, including increasing fees or charges.
24.9 	(a) The tax expense generated by section 295.52 may be transferred as follows:
24.10 	(1) a hospital, surgical center, or health care provider subject to the tax under section 
24.11 	295.52 may transfer the tax expense to all third-party contracts for the purchase of health 
24.12 	care services on behalf of a patient or consumer;
24.13 	(2) a wholesale drug distributor subject to the tax under section 295.52 may transfer the 
24.14 	tax expense to entities that purchase legend drugs from the wholesale drug distributor; and
24.15 	(3) a pharmacy that has paid the tax expense transferred by a wholesale drug distributor 
24.16 	may transfer the tax expense to all third-party contracts for the purchase of health care 
24.17 	services on behalf of a patient or consumer. Nothing shall prohibit a pharmacy from 
24.18 	transferring the tax expense generated under section 295.52 to a pharmacy benefits manager.
24.19 	(b) The transfer of the tax expense under paragraph (a) must comply with the following:
24.20 	(1) the tax expense transferred to the third-party purchaser or a pharmacy benefits 
24.21 	manager must not exceed the tax percentage specified in section 295.52 multiplied against:
24.22 	(i) gross revenues received under the third-party contract; and
24.23 	(ii) co-payments and deductibles paid by the individual patient or consumer; and
24.24 	(2) the tax expense must not be generated on revenues derived from payments that are 
24.25 	excluded or exempted from the tax under section 295.53.
24.26 	(c) Payment of the transferred tax expense is required as follows:
24.27 	(1) all third-party purchasers of health care services, including but not limited to 
24.28 	third-party purchasers regulated under chapter 60A, 62A, 62C, 62D, 62H, 62N, 64B, 65A, 
24.29 	65B, 79, or 79A, or under section 471.61 or 471.617, and pharmacy benefits managers must 
24.30 	pay the transferred expense. This is in addition to any payments due under existing contracts 
24.31 	with the hospital, surgical center, pharmacy, or health care provider, to the extent allowed 
24.32 	under federal law; and
25.1 	(2) all entities that purchase legend drugs from a wholesale drug distributor must pay 
25.2 	the transferred expense.
25.3 	(d) A third-party purchaser or pharmacy benefits manager must comply with this section 
25.4 	regardless of whether the third-party purchaser or pharmacy benefits manager is a for-profit, 
25.5 	not-for-profit, or nonprofit entity.
25.6 	(e) Nothing in this section limits the ability of a hospital, surgical center, health care 
25.7 	provider, pharmacy, or wholesale drug distributor to recover all or part of the section 295.52 
25.8 	obligation by other methods, including increasing fees or charges.
25.9 	(b)(f) Any hospital, surgical center, or health care provider subject to a tax under section 
25.10 	295.52 or a pharmacy that has paid the additional expense transferred under this section by 
25.11 	a wholesale drug distributor may file a complaint with the commissioner responsible for 
25.12 	regulating the third-party purchaser if at any time the third-party purchaser fails to comply 
25.13 	with paragraph (a) this section.
25.14 	(c) (g) If the commissioner responsible for regulating the third-party purchaser finds at 
25.15 	any time that the third-party purchaser has not complied with paragraph (a) this section, the 
25.16 	commissioner may take enforcement action against a third-party purchaser which is subject 
25.17 	to the commissioner's regulatory jurisdiction and which does not allow a hospital, surgical 
25.18 	center, pharmacy, or provider to pass-through the tax expense. The commissioner may by 
25.19 	order fine or censure the third-party purchaser or revoke or suspend the certificate of authority 
25.20 	or license of the third-party purchaser to do business in this state if the commissioner finds 
25.21 	that the third-party purchaser has not complied with this section. The third-party purchaser 
25.22 	may appeal the commissioner's order through a contested case hearing in accordance with 
25.23 	chapter 14.

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

25.25 	ARTICLE 5
25.26 	PROPERTY TAX POLICY

25.27 	Section 1. Minnesota Statutes 2018, section 162.145, subdivision 3, is amended to read:
25.28 		Subd. 3.Administration. (a) Subject to funds made available by law, the commissioner 
25.29 	shall allocate all funds as provided in subdivision 4 and shall notify, by June 1, certify to
25.30 	the commissioner of revenue the amounts to be paid.
25.31 	(b) Following notification certification from the commissioner of transportation, the 
25.32 	commissioner of revenue shall distribute the specified funds to cities in the same manner 
26.1 	as local government aid under chapter 477A. An appropriation to the commissioner of 
26.2 	transportation under this section is available to the commissioner of revenue for the purposes 
26.3 	specified in this paragraph.
26.4 	(c) Notwithstanding other law to the contrary, in order to receive distributions under 
26.5 	this section, a city must conform to the standards in section 477A.017, subdivision 2. A city 
26.6 	that receives funds under this section must make and preserve records necessary to show 
26.7 	that the funds are spent in compliance with subdivision 4.

26.8 	EFFECTIVE DATE. This section is effective for aids payable in 2019 and thereafter.

26.9 	Sec. 2. Minnesota Statutes 2018, section 273.124, subdivision 13, is amended to read:
26.10 		Subd. 13.Homestead application. (a) A person who meets the homestead requirements 
26.11 	under subdivision 1 must file a homestead application with the county assessor to initially 
26.12 	obtain homestead classification.
26.13 	(b) The commissioner shall prescribe the content, format, and manner of the homestead 
26.14 	application required to be filed under this chapter pursuant to section 270C.30. The 
26.15 	application must clearly inform the taxpayer that this application must be signed by all 
26.16 	owners who occupy the property or by the qualifying relative and returned to the county 
26.17 	assessor in order for the property to receive homestead treatment.
26.18 	(c) Every property owner applying for homestead classification must furnish to the 
26.19 	county assessor the Social Security number of each occupant who is listed as an owner of 
26.20 	the property on the deed of record, the name and address of each owner who does not occupy 
26.21 	the property, and the name and Social Security number of each owner's the spouse of each 
26.22 	occupying owner. The application must be signed by each owner who occupies the property 
26.23 	and by each owner's spouse who occupies the property, or, in the case of property that 
26.24 	qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
26.25 	If a property owner occupies a homestead, the property owner's spouse may not claim 
26.26 	another property as a homestead unless the property owner and the property owner's spouse 
26.27 	file with the assessor an affidavit or other proof required by the assessor stating that the 
26.28 	property qualifies as a homestead under subdivision 1, paragraph (e).
26.29 	Owners or spouses occupying residences owned by their spouses and previously occupied 
26.30 	with the other spouse, either of whom fail to include the other spouse's name and Social 
26.31 	Security number on the homestead application or provide the affidavits or other proof 
26.32 	requested, will be deemed to have elected to receive only partial homestead treatment of 
26.33 	their residence. The remainder of the residence will be classified as nonhomestead residential. 
27.1 	When an owner or spouse's name and Social Security number appear on homestead 
27.2 	applications for two separate residences and only one application is signed, the owner or 
27.3 	spouse will be deemed to have elected to homestead the residence for which the application 
27.4 	was signed.
27.5 	(d) If residential real estate is occupied and used for purposes of a homestead by a relative 
27.6 	of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 
27.7 	the property to receive homestead status, a homestead application must be filed with the 
27.8 	assessor. The Social Security number of each relative occupying the property and the name 
27.9 	and Social Security number of the spouse of a relative occupying the property shall be 
27.10 	required on the homestead application filed under this subdivision. If a different relative of 
27.11 	the owner subsequently occupies the property, the owner of the property must notify the 
27.12 	assessor within 30 days of the change in occupancy. The Social Security number of a relative 
27.13 	occupying the property or the spouse of a relative occupying the property is private data on 
27.14 	individuals as defined by section 13.02, subdivision 12, but may be disclosed to the 
27.15 	commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture 
27.16 	Act to recover personal property taxes owing, to the county treasurer.
27.17 	(e) The homestead application shall also notify the property owners that if the property 
27.18 	is granted homestead status for any assessment year, that same property shall remain 
27.19 	classified as homestead until the property is sold or transferred to another person, or the 
27.20 	owners, the spouse of the owner, or the relatives no longer use the property as their 
27.21 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
27.22 	be timely filed with the county auditor as provided under section 272.115. Failure to notify 
27.23 	the assessor within 30 days that the property has been sold, transferred, or that the owner, 
27.24 	the spouse of the owner, or the relative is no longer occupying the property as a homestead, 
27.25 	shall result in the penalty provided under this subdivision and the property will lose its 
27.26 	current homestead status.
27.27 	(f) If a homestead application has not been filed with the county by December 15, the 
27.28 	assessor shall classify the property as nonhomestead for the current assessment year for 
27.29 	taxes payable in the following year, provided that the owner may be entitled to receive the 
27.30 	homestead classification by proper application under section 375.192.

27.31 	EFFECTIVE DATE. This section is effective for applications for homestead filed in 
27.32 	2020 and thereafter.

28.1 	ARTICLE 6
28.2 	DEPARTMENT OF REVENUE; PROPERTY TAXES; TECHNICAL CHANGES

28.3 	Section 1. Minnesota Statutes 2018, section 270C.85, subdivision 2, is amended to read:
28.4 		Subd. 2.Powers and duties. The commissioner shall have and exercise the following 
28.5 	powers and duties in administering the property tax laws.:
28.6 	(a) (1) confer with, advise, and give the necessary instructions and directions to local 
28.7 	assessors and local boards of review throughout the state as to their duties under the laws 
28.8 	of the state.;
28.9 	(b) (2) direct proceedings, actions, and prosecutions to be instituted to enforce the laws 
28.10 	relating to the liability and punishment of public officers and officers and agents of 
28.11 	corporations for failure or negligence to comply with the provisions of the property tax 
28.12 	laws, and cause complaints to be made against local assessors, members of boards of 
28.13 	equalization, members of boards of review, or any other assessing or taxing officer, to the 
28.14 	proper authority, for their removal from office for misconduct or negligence of duty.;
28.15 	(c) (3) require county attorneys to assist in the commencement of prosecutions in actions 
28.16 	or proceedings for removal, forfeiture, and punishment, for violation of the property tax 
28.17 	laws in their respective districts or counties.;
28.18 	(d) (4) require town, city, county, and other public officers to report and certify 
28.19 	information, at the parcel level or in the aggregate, as to the assessment and taxation of real 
28.20 	and personal property, and such other information as may be needful in the work of the 
28.21 	commissioner, in such form as the commissioner may prescribe. The commissioner shall 
28.22 	prescribe the content, format, manner, and time of filing of all required reports and 
28.23 	certifications;
28.24 	(e) (5) transmit to the governor, on or before the third Monday in December of each 
28.25 	even-numbered year, and to each member of the legislature, on or before November 15 of 
28.26 	each even-numbered year, the report of the department for the preceding years, showing all 
28.27 	the taxable property subject to the property tax laws and the value of the same, in tabulated 
28.28 	form.;
28.29 	(f) (6) inquire into the methods of assessment and taxation and ascertain whether the 
28.30 	assessors faithfully discharge their duties.; and
28.31 	(g) (7) assist local assessors in determining the estimated market value of industrial 
28.32 	special-use property. For purposes of this paragraph clause, "industrial special-use property" 
28.33 	means property that:
29.1 	(1)(i) is designed and equipped for a particular type of industry;
29.2 	(2)(ii) is not easily adapted to some other use due to the unique nature of the facilities;
29.3 	(3)(iii) has facilities totaling at least 75,000 square feet in size; and
29.4 	(4)(iv) has a total estimated market value of $10,000,000 or greater based on the 
29.5 	assessor's preliminary determination.

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

29.7 	Sec. 2. Minnesota Statutes 2018, section 270C.89, subdivision 1, is amended to read:
29.8 		Subdivision 1.Initial report. Each county assessor shall file by April 1 with the 
29.9 	commissioner a copy of the abstract preliminary assessment information that the 
29.10 	commissioner may require under section 270C.85, subdivision 2, clause (4), that will be 
29.11 	acted upon by the local and county boards of review. The abstract must list the real and 
29.12 	personal property in the county itemized by assessment districts. The assessor of each county 
29.13 	in the state shall file with the commissioner, within ten working days following final action 
29.14 	of the local board of review or equalization and within five days following final action of 
29.15 	the county board of equalization, any changes made by the local or county board. The 
29.16 	information must be filed in the manner prescribed by the commissioner.

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

29.18 	Sec. 3. Minnesota Statutes 2018, section 270C.89, subdivision 2, is amended to read:
29.19 		Subd. 2.Final report. The final abstract of assessments assessment information after 
29.20 	adjustments by the State Board of Equalization and inclusion of any omitted property shall 
29.21 	be submitted reported to the commissioner on or before September 1 of each calendar year
29.22 	under section 270C.85, subdivision 2, clause (4). The final abstract must separately report 
29.23 	the captured tax capacity of tax increment financing districts under section 469.177, 
29.24 	subdivision 2, the areawide net tax capacity contribution values determined under sections 
29.25 	276A.05, subdivision 1, and 473F.07, subdivision 1, and the value subject to the power line 
29.26 	credit under section 273.42.

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

30.1 	Sec. 4. Minnesota Statutes 2018, section 270C.91, is amended to read:
30.2 	270C.91 RECORD OF PROCEEDINGS CHANGING NET TAX CAPACITY; 
30.3 	DUTIES OF COUNTY AUDITOR.
30.4 	A record of all proceedings of the commissioner affecting any change in the net tax 
30.5 	capacity of any property, as revised by the State Board of Equalization, shall be kept by the 
30.6 	commissioner and a copy thereof, duly certified, shall be mailed each year to the auditor of 
30.7 	each county wherein such property is situated, on or before June 30 or 30 days after 
30.8 	submission of the abstract required by section 270C.89, whichever is later. This record shall 
30.9 	specify the amounts or amount, or both, added to or deducted from the net tax capacity of 
30.10 	the real property of each of the several towns and cities, and of the real property not in towns 
30.11 	or cities, also the percent or amount of both, added to or deducted from the several classes 
30.12 	of personal property in each of the towns and cities, and also the amount added to or deducted 
30.13 	from the assessment of any person. The county auditor shall add to or deduct from such 
30.14 	tract or lot, or portion thereof, of any real property in the county the required percent or 
30.15 	amount, or both, on the net tax capacity thereof as it stood after equalized by the county 
30.16 	board, adding in each case a fractional sum of 50 cents or more, and deducting in each case 
30.17 	any fractional sum of less than 50 cents, so that no net tax capacity of any separate tract or 
30.18 	lot shall contain any fraction of a dollar; and add to, or deduct from, the several classes of 
30.19 	personal property in the county the required percent or amount, or both, on the net tax 
30.20 	capacity thereof as it stood after equalized by the county board, adding or deducting in 
30.21 	manner aforesaid any fractional sum so that no net tax capacity of any separate class of 
30.22 	personal property shall contain a fraction of a dollar, and add to or deduct from assessment 
30.23 	of any person, as they stood after equalization by the county board, the required amounts 
30.24 	to agree with the assessments as returned by the commissioner.

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

30.26 	Sec. 5. Minnesota Statutes 2018, section 273.061, subdivision 9, is amended to read:
30.27 		Subd. 9.Additional general duties. Additional duties of the county assessor shall be
30.28 	are as follows:
30.29 	(1) to make all assessments, based upon the appraised values reported by the local 
30.30 	assessors or assistants and the county assessor's own knowledge of the value of the property 
30.31 	assessed;
30.32 	(2) to personally view and determine the value of any property which that because of 
30.33 	its type or character may be difficult for the local assessor to appraise;
31.1 	(3) to make all changes ordered by the local boards of review, relative to the net tax 
31.2 	capacity of the property of any individual, firm or corporation after notice has been given 
31.3 	and hearings held as provided by law;
31.4 	(4) to enter all assessments in the assessment books, furnished by the county auditor, 
31.5 	with each book and the tabular statements for each book in correct balance;
31.6 	(5) to prepare all assessment cards, charts, maps and any other forms prescribed by the 
31.7 	commissioner of revenue;
31.8 	(6) to attend the meeting of the county board of equalization; to investigate and report 
31.9 	on any assessment ordered by said board; to enter all changes made by said board in the 
31.10 	assessment books and prepare the abstract of assessments for the commissioner of revenue
31.11 	information reported to the commissioner under section 270C.85, subdivision 2, clause (4); 
31.12 	to enter all changes made by the State Board of Equalization in the assessment books; to 
31.13 	deduct all exemptions authorized by law from each assessment and certify to the county 
31.14 	auditor the taxable value of each parcel of land, as described and listed in the assessment 
31.15 	books by the county auditor, and the taxable value of the personal property of each person, 
31.16 	firm, or corporation assessed;
31.17 	(7) to investigate and make recommendations relative to all applications for the abatement 
31.18 	of taxes or applications for the reduction of the net tax capacity of any property; and
31.19 	(8) to perform all other duties relating to the assessment of property for the purpose of 
31.20 	taxation which may be required by the commissioner of revenue.

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

31.22 	Sec. 6. Minnesota Statutes 2018, section 273.0755, is amended to read:
31.23 	273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.
31.24 	(a) Beginning with the four-year period starting on July 1, 2000, every person licensed 
31.25 	by the state Board of Assessors at the Accredited Minnesota Assessor level or higher, shall 
31.26 	successfully complete a weeklong Minnesota laws course sponsored by the Department of 
31.27 	Revenue at least once in every four-year period. An assessor need not attend the course if 
31.28 	they successfully pass the test for the course.
31.29 	(b) The commissioner of revenue may require that each county, and each city for which 
31.30 	the city assessor performs the duties of county assessor, have (i) (1) a person on the assessor's 
31.31 	staff who is certified by the Department of Revenue in sales ratio calculations, (ii) (2) an 
31.32 	officer or employee who is certified by the Department of Revenue in tax calculations, and 
32.1 	(iii) (3) an officer or employee who is certified by the Department of Revenue in the proper 
32.2 	preparation of abstracts of assessment. The commissioner of revenue may require that each 
32.3 	county have an officer or employee who is certified by the Department of Revenue in the 
32.4 	proper preparation of abstracts of tax lists information reported to the commissioner under 
32.5 	section 270C.85, subdivision 2, clause (4). Certifications under this paragraph expire after 
32.6 	four years.
32.7 	(c) Beginning with the four-year educational licensing period starting on July 1, 2004, 
32.8 	every Minnesota assessor licensed by the State Board of Assessors must attend and participate 
32.9 	in a seminar that focuses on ethics, professional conduct and the need for standardized 
32.10 	assessment practices developed and presented by the commissioner of revenue. This 
32.11 	requirement must be met at least once in every subsequent four-year period. This requirement 
32.12 	applies to all assessors licensed for one year or more in the four-year period.
32.13 	(d) When the commissioner of revenue determines that an individual or board that 
32.14 	performs functions related to property tax administration has performed those functions in 
32.15 	a manner that is not uniform or equitable, the commissioner may require that the individual 
32.16 	or members of the board complete supplemental training. The commissioner may not require 
32.17 	that an individual complete more than 32 hours of supplemental training pursuant to this 
32.18 	paragraph. If the individual is required to complete supplemental training due to that 
32.19 	individual's membership on a local or county board of appeal and equalization, the 
32.20 	commissioner may not require that the individual complete more than two hours of 
32.21 	supplemental training.

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

32.23 	Sec. 7. Minnesota Statutes 2018, section 273.113, subdivision 3, is amended to read:
32.24 		Subd. 3.Reimbursement for lost revenue. The county auditor shall certify to the 
32.25 	commissioner of revenue, as part of the abstracts of tax lists required to be filed with the 
32.26 	commissioner under section 275.29 270C.85, subdivision 2, clause (4), the amount of tax 
32.27 	lost to the county from the property tax credit under subdivision 2. Any prior year adjustments 
32.28 	must also be certified in the abstracts of tax lists. The commissioner of revenue shall review 
32.29 	the certifications to determine their accuracy. The commissioner may make the changes in 
32.30 	the certification that are considered necessary or return a certification to the county auditor 
32.31 	for corrections. The commissioner shall reimburse each taxing district, other than school 
32.32 	districts, for the taxes lost. The payments must be made at the time provided in section 
32.33 	473H.10 for payment to taxing jurisdictions in the same proportion that the ad valorem tax 
32.34 	is distributed. Reimbursements to school districts must be made as provided in section 
33.1 	273.1392. The amount necessary to make the reimbursements under this section is annually 
33.2 	appropriated from the general fund to the commissioner of revenue.

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

33.4 	Sec. 8. Minnesota Statutes 2018, section 273.119, subdivision 2, is amended to read:
33.5 		Subd. 2.Reimbursement for lost revenue. The county may transfer money from the 
33.6 	county conservation account created in section 40A.152 to the county revenue fund to 
33.7 	reimburse the fund for the cost of the property tax credit. The county auditor shall certify 
33.8 	to the commissioner of revenue, as part of the abstracts of tax lists required to be filed with 
33.9 	the commissioner under section 275.29 270C.85, subdivision 2, clause (4), the amount of 
33.10 	tax lost to the county from the property tax credit under subdivision 1 and the extent that 
33.11 	the tax lost exceeds funds available in the county conservation account. Any prior year 
33.12 	adjustments must also be certified in the abstracts of tax lists. The commissioner of revenue 
33.13 	shall review the certifications to determine their accuracy. The commissioner may make 
33.14 	the changes in the certification that are considered necessary or return a certification to the 
33.15 	county auditor for corrections. The commissioner shall reimburse each taxing district, other 
33.16 	than school districts, from the Minnesota conservation fund under section 40A.151 for the 
33.17 	taxes lost in excess of the county account. The payments must be made at the time provided 
33.18 	in section 473H.10, subdivision 3, for payment to taxing jurisdictions in the same proportion 
33.19 	that the ad valorem tax is distributed.

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

33.21 	Sec. 9. Minnesota Statutes 2018, section 273.1231, subdivision 3, is amended to read:
33.22 		Subd. 3.Disaster or emergency area.  (a) "Disaster or emergency area" means a 
33.23 	geographic area for which:
33.24 	(1)(i) the president of the United States, the secretary of agriculture, or the administrator 
33.25 	of the Small Business Administration has determined that a disaster exists pursuant to federal 
33.26 	law, or
33.27 	(ii) a local emergency has been declared pursuant to section 12.29; and
33.28 	(2) an application by the local unit of government requesting property tax relief under 
33.29 	this section has been received by the governor and approved by the executive council.
33.30 	(b) The executive council must not approve an application unless:
33.31 	(1) a completed disaster survey is included; and
34.1 	(2) within the boundaries of the applicant, (i) the average damage for the buildings that 
34.2 	are damaged is at least $5,000, and (ii) either at least 25 taxable buildings were damaged, 
34.3 	or the total dollar amount of damage to all taxable buildings equals or exceeds one percent 
34.4 	of the total taxable market value of buildings for the applicant as reported to the commissioner 
34.5 	of revenue under section 270C.89, subdivision 2 270C.85, subdivision 2, clause (4), for the 
34.6 	assessment in the year prior to the year of the damage.

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

34.8 	Sec. 10. Minnesota Statutes 2018, section 273.136, subdivision 2, is amended to read:
34.9 		Subd. 2.Reduction amounts submitted to county. The commissioner of revenue shall 
34.10 	determine, not later than April 1 of each year, the amount of reduction resulting from section 
34.11 	273.135 in each county containing a tax relief area as defined by section 273.134, paragraph 
34.12 	(b), basing determinations on a review of abstracts of tax lists submitted by the county 
34.13 	auditors pursuant to section 275.29 information reported to the commissioner under section 
34.14 	270C.85, subdivision 2, clause (4). The commissioner may make changes in the abstracts 
34.15 	of tax lists as deemed necessary. The commissioner of revenue, after such review, shall 
34.16 	submit to the St. Louis County auditor, on or before April 15, the amount of the first half 
34.17 	payment payable hereunder and on or before September 15 the amount of the second half 
34.18 	payment.

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

34.20 	Sec. 11. Minnesota Statutes 2018, section 273.1384, subdivision 3, is amended to read:
34.21 		Subd. 3.Credit reimbursements. The county auditor shall determine the tax reductions 
34.22 	allowed under subdivision 2 within the county for each taxes payable year and shall certify 
34.23 	that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted 
34.24 	by the county auditors under section 275.29 under section 270C.85, subdivision 2, clause 
34.25 	(4). Any prior year adjustments shall also be certified on the abstracts of tax lists. The 
34.26 	commissioner shall review the certifications for accuracy, and may make such changes as 
34.27 	are deemed necessary, or return the certification to the county auditor for correction. The 
34.28 	credit under this section must be used to proportionately reduce the net tax capacity-based 
34.29 	property tax payable to each local taxing jurisdiction as provided in section 273.1393.

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

35.1 	Sec. 12. Minnesota Statutes 2018, section 273.1387, subdivision 3, is amended to read:
35.2 		Subd. 3.Credit reimbursements. The county auditor shall determine the tax reductions 
35.3 	allowed under this section within the county for each taxes payable year and shall certify 
35.4 	that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted 
35.5 	under section 275.29 under section 270C.85, subdivision 2, clause (4). Any prior year 
35.6 	adjustments shall also be certified on the abstracts of tax lists. The commissioner shall 
35.7 	review the certifications for accuracy, and may make such changes as are deemed necessary, 
35.8 	or return the certification to the county auditor for correction. The credit under this section 
35.9 	must be used to reduce the school district net tax capacity-based property tax as provided 
35.10 	in section 273.1393.

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

35.12 	Sec. 13. Minnesota Statutes 2018, section 273.18, is amended to read:
35.13 	273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT PROPERTY 
35.14 	BY COUNTY AUDITORS.
35.15 	(a) In every sixth year after the year 2010, the county auditor shall enter the description 
35.16 	of each tract of real property exempt by law from taxation, with the name of the owner, and 
35.17 	the assessor shall value and assess the same in the same manner that other real property is 
35.18 	valued and assessed, and shall designate in each case the purpose for which the property is 
35.19 	used.
35.20 	(b) For purposes of the apportionment of fire state aid under section 69.021, subdivision 
35.21 	7, The county auditor shall include on the abstract of assessment of exempt real property 
35.22 	filed under this section in the exempt property information that the commissioner may 
35.23 	require under section 270C.85, subdivision 2, clause (4), the total number of acres of all 
35.24 	natural resources lands for which in lieu payments are made under sections 477A.11 to 
35.25 	477A.14. The assessor shall estimate its market value, provided that if the assessor is not 
35.26 	able to estimate the market value of the land on a per parcel basis, the assessor shall furnish 
35.27 	the commissioner of revenue with an estimate of the average value per acre of this land 
35.28 	within the county.

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

36.1 	Sec. 14. Minnesota Statutes 2018, section 274.14, is amended to read:
36.2 	274.14 LENGTH OF SESSION; RECORD.
36.3 	The board must meet after the second Friday in June on at least one meeting day and 
36.4 	may meet for up to ten consecutive meeting days. The actual meeting dates must be contained 
36.5 	on the valuation notices mailed to each property owner in the county as provided in section 
36.6 	273.121. For this purpose, "meeting days" is defined as any day of the week excluding 
36.7 	Sunday. At the board's discretion, "meeting days" may include Saturday. No action taken 
36.8 	by the county board of review after June 30 is valid, except for corrections permitted in 
36.9 	sections 273.01 and 274.01. The county auditor shall keep an accurate record of the 
36.10 	proceedings and orders of the board. The record must be published like other proceedings 
36.11 	of county commissioners. A copy of the published record must be sent to the commissioner 
36.12 	of revenue, with the abstract of assessment required by section 274.16 within five days 
36.13 	following final action of the county board of equalization.
36.14 	For counties that conduct either regular board of review meetings or open book meetings, 
36.15 	at least one of the meeting days must include a meeting that does not end before 7:00 p.m. 
36.16 	For counties that require taxpayer appointments for the board of review, appointments must 
36.17 	include some available times that extend until at least 7:00 p.m. The county may have a 
36.18 	Saturday meeting in lieu of, or in addition to, the extended meeting times under this 
36.19 	paragraph.

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

36.21 	Sec. 15. Minnesota Statutes 2018, section 274.16, is amended to read:
36.22 	274.16 CORRECTED LISTS, ABSTRACTS.
36.23 	The county assessor or, in Ramsey County, the official designated by the board of county 
36.24 	commissioners shall calculate the changes of the assessment lists determined by the county 
36.25 	board of equalization, and make corrections accordingly, in the real or personal lists, or 
36.26 	both, and shall make duplicate abstracts duplicates of them. One must be filed in the assessor's 
36.27 	office, and one must be forwarded to the commissioner of revenue as provided in section 
36.28 	270C.89.

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

36.30 	Sec. 16. Minnesota Statutes 2018, section 275.025, subdivision 1, is amended to read:
36.31 		Subdivision 1.Levy amount. The state general levy is levied against 
36.32 	commercial-industrial property and seasonal residential recreational property, as defined 
37.1 	in this section. The state general levy for commercial-industrial property is $784,590,000 
37.2 	for taxes payable in 2018 and thereafter. The state general levy for seasonal-recreational 
37.3 	property is $44,190,000 for taxes payable in 2018 and thereafter. The tax under this section 
37.4 	is not treated as a local tax rate under section 469.177 and is not the levy of a governmental 
37.5 	unit under chapters 276A and 473F.
37.6 	The commissioner shall increase or decrease the preliminary or final rate for a year as 
37.7 	necessary to account for errors and tax base changes that affected a preliminary or final rate 
37.8 	for either of the two preceding years. Adjustments are allowed to the extent that the necessary 
37.9 	information is available to the commissioner at the time the rates for a year must be certified, 
37.10 	and for the following reasons:
37.11 	(1) an erroneous report of taxable value by a local official;
37.12 	(2) an erroneous calculation by the commissioner; and
37.13 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
37.14 	residential recreational property reported on the abstracts of tax lists submitted under section 
37.15 	275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
37.16 	to the commissioner under section 270C.85, subdivision 2, clause (4), for the same year.
37.17 	The commissioner may, but need not, make adjustments if the total difference in the tax 
37.18 	levied for the year would be less than $100,000.

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

37.20 	Sec. 17. Minnesota Statutes 2018, section 290B.09, subdivision 1, is amended to read:
37.21 		Subdivision 1.Determination; payment. The county auditor shall determine the total 
37.22 	current year's deferred amount of property tax under this chapter in the county, and submit
37.23 	report those amounts as part of the abstracts of tax lists submitted by the county auditors 
37.24 	under section 275.29 to the commissioner under section 270C.85, subdivision 2, clause (4). 
37.25 	The commissioner may make changes in the abstracts of tax lists as deemed necessary. The 
37.26 	commissioner of revenue, after such review, shall pay the deferred amount of property tax 
37.27 	to each county treasurer on or before August 31.
37.28 	The county treasurer shall distribute as part of the October settlement the funds received 
37.29 	as if they had been collected as a part of the property tax.

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

38.1 	Sec. 18. Minnesota Statutes 2018, section 469.177, subdivision 1, is amended to read:
38.2 		Subdivision 1.Original net tax capacity. (a) Upon or after adoption of a tax increment 
38.3 	financing plan, the auditor of any county in which the district is situated shall, upon request 
38.4 	of the authority, certify the original net tax capacity of the tax increment financing district 
38.5 	and that portion of the district overlying any subdistrict as described in the tax increment 
38.6 	financing plan and shall certify in each year thereafter the amount by which the original net 
38.7 	tax capacity has increased or decreased as a result of a change in tax exempt status of 
38.8 	property within the district and any subdistrict, reduction or enlargement of the district or 
38.9 	changes pursuant to subdivision 4. The auditor shall certify the amount within 30 days after 
38.10 	receipt of the request and sufficient information to identify the parcels included in the district. 
38.11 	The certification relates to the taxes payable year as provided in subdivision 6.
38.12 	(b) If the classification under section 273.13 of property located in a district changes to 
38.13 	a classification that has a different assessment ratio, the original net tax capacity of that 
38.14 	property must be redetermined at the time when its use is changed as if the property had 
38.15 	originally been classified in the same class in which it is classified after its use is changed.
38.16 	(c) The amount to be added to the original net tax capacity of the district as a result of 
38.17 	previously tax exempt real property within the district becoming taxable equals the net tax 
38.18 	capacity of the real property as most recently assessed pursuant to section 273.18 information 
38.19 	reported to the commissioner under section 270C.85, subdivision 2, clause (4), or, if that 
38.20 	assessment was made more than one year prior to the date of title transfer rendering the 
38.21 	property taxable, the net tax capacity assessed by the assessor at the time of the transfer. If 
38.22 	improvements are made to tax exempt property after the municipality approves the district 
38.23 	and before the parcel becomes taxable, the assessor shall, at the request of the authority, 
38.24 	separately assess the estimated market value of the improvements. If the property becomes 
38.25 	taxable, the county auditor shall add to original net tax capacity, the net tax capacity of the 
38.26 	parcel, excluding the separately assessed improvements. If substantial taxable improvements 
38.27 	were made to a parcel after certification of the district and if the property later becomes tax 
38.28 	exempt, in whole or part, as a result of the authority acquiring the property through 
38.29 	foreclosure or exercise of remedies under a lease or other revenue agreement or as a result 
38.30 	of tax forfeiture, the amount to be added to the original net tax capacity of the district as a 
38.31 	result of the property again becoming taxable is the amount of the parcel's value that was 
38.32 	included in original net tax capacity when the parcel was first certified. The amount to be 
38.33 	added to the original net tax capacity of the district as a result of enlargements equals the 
38.34 	net tax capacity of the added real property as most recently certified by the commissioner 
39.1 	of revenue as of the date of modification of the tax increment financing plan pursuant to 
39.2 	section 469.175, subdivision 4.
39.3 	(d) If the net tax capacity of a property increases because the property no longer qualifies 
39.4 	under the Minnesota Agricultural Property Tax Law, section 273.111; the Minnesota Open 
39.5 	Space Property Tax Law, section 273.112; or the Metropolitan Agricultural Preserves Act, 
39.6 	chapter 473H, the Rural Preserve Property Tax Program under section 273.114, or because 
39.7 	platted, unimproved property is improved or market value is increased after approval of the 
39.8 	plat under section 273.11, subdivision 14a or 14b, the increase in net tax capacity must be 
39.9 	added to the original net tax capacity. If the net tax capacity of a property increases because 
39.10 	the property no longer qualifies for the homestead market value exclusion under section 
39.11 	273.13, subdivision 35, the increase in net tax capacity must be added to original net tax 
39.12 	capacity if the original construction of the affected home was completed before the date the 
39.13 	assessor certified the original net tax capacity of the district.
39.14 	(e) The amount to be subtracted from the original net tax capacity of the district as a 
39.15 	result of previously taxable real property within the district becoming tax exempt or 
39.16 	qualifying in whole or part for an exclusion from taxable market value, or a reduction in 
39.17 	the geographic area of the district, shall be the amount of original net tax capacity initially 
39.18 	attributed to the property becoming tax exempt, being excluded from taxable market value, 
39.19 	or being removed from the district. If the net tax capacity of property located within the tax 
39.20 	increment financing district is reduced by reason of a court-ordered abatement, stipulation 
39.21 	agreement, voluntary abatement made by the assessor or auditor or by order of the 
39.22 	commissioner of revenue, the reduction shall be applied to the original net tax capacity of 
39.23 	the district when the property upon which the abatement is made has not been improved 
39.24 	since the date of certification of the district and to the captured net tax capacity of the district 
39.25 	in each year thereafter when the abatement relates to improvements made after the date of 
39.26 	certification. The county auditor may specify reasonable form and content of the request 
39.27 	for certification of the authority and any modification thereof pursuant to section 469.175, 
39.28 	subdivision 4.
39.29 	(f) If a parcel of property contained a substandard building or improvements described 
39.30 	in section 469.174, subdivision 10, paragraph (e), that were demolished or removed and if 
39.31 	the authority elects to treat the parcel as occupied by a substandard building under section 
39.32 	469.174, subdivision 10, paragraph (b), or by improvements under section 469.174, 
39.33 	subdivision 10, paragraph (e), the auditor shall certify the original net tax capacity of the 
39.34 	parcel using the greater of (1) the current net tax capacity of the parcel, or (2) the estimated 
40.1 	market value of the parcel for the year in which the building or other improvements were 
40.2 	demolished or removed, but applying the classification rates for the current year.
40.3 	(g) For a redevelopment district qualifying under section 469.174, subdivision 10, 
40.4 	paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of 
40.5 	the land as the original tax capacity for any parcel in the district that contains a building 
40.6 	that suffered substantial damage as a result of the disaster or emergency.

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

40.8 	Sec. 19.  REPEALER.
 40.9 	Minnesota Statutes 2018, section 275.29, is repealed.

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

40.11 	ARTICLE 7
40.12 	FIRE STATE AID; TECHNICAL CHANGES

40.13 	Section 1. [477B.01] DEFINITIONS.
40.14 		Subdivision 1.Scope. Unless the language or context clearly indicates that a different 
40.15 	meaning is intended, the following words and terms, for the purposes of this chapter and 
40.16 	chapters 423A and 424A, have the meanings given to them.
40.17 		Subd. 2.Commissioner. "Commissioner" means the commissioner of revenue.
40.18 		Subd. 3.Company or insurance company. "Company" or "insurance company" has 
40.19 	the meaning given in section 60A.02, subdivision 4.
40.20 		Subd. 4.Estimated market value. "Estimated market value" has the meaning given in 
40.21 	section 272.03, subdivision 14.
40.22 		Subd. 5.Fire department. "Fire department" includes a municipal fire department and 
40.23 	an independent nonprofit firefighting corporation.
40.24 		Subd. 6.Fire department service area. "Fire department service area" means the area 
40.25 	serviced by a qualifying fire department that meets the requirements of section 477B.02.
40.26 		Subd. 7.Independent nonprofit firefighting corporation. "Independent nonprofit 
40.27 	firefighting corporation" means an independent nonprofit firefighting corporation that meets 
40.28 	the criteria in section 424A.094, subdivision 1, paragraph (a).
40.29 		Subd. 8.Minnesota Fire Premium Report. "Minnesota Fire Premium Report" means 
40.30 	a form for reporting by insurance companies of (1) gross direct fire, lightning, sprinkler 
41.1 	leakage, and extended coverage premiums received upon risks located or to be performed 
41.2 	in this state less return premiums and dividends, and (2) other facts that the commissioner 
41.3 	may require.
41.4 		Subd. 9.Municipal clerk. "Municipal clerk" means the person elected or appointed to 
41.5 	the position of municipal clerk or, if there is no such person, the chief financial official, the 
41.6 	chief administrative official, or the person primarily responsible for managing the finances 
41.7 	of a municipality.
41.8 		Subd. 10.Municipality. (a) "Municipality" means:
41.9 	(1) a home rule charter or statutory city;
41.10 	(2) an organized town;
41.11 	(3) a park district subject to chapter 398;
41.12 	(4) the University of Minnesota; and
41.13 	(5) an American Indian tribal government entity located within a federally recognized 
41.14 	American Indian reservation.
41.15 	(b) This subdivision only applies to chapter 477B.
41.16 		Subd. 11.Secretary. "Secretary" means the secretary of an independent nonprofit 
41.17 	firefighting corporation that has a subsidiary incorporated firefighters' relief association or 
41.18 	whose firefighters participate in the voluntary statewide volunteer firefighter retirement 
41.19 	plan.
41.20 		Subd. 12.Voluntary statewide volunteer firefighter retirement plan. "Voluntary 
41.21 	statewide volunteer firefighter retirement plan" means the retirement plan established under 
41.22 	chapter 353G.

41.23 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

41.24 	Sec. 2. [477B.02] QUALIFYING FOR FIRE STATE AID.
41.25 		Subdivision 1.Qualifications for fire state aid. A municipality or independent nonprofit 
41.26 	firefighting corporation qualifies to receive fire state aid if all the requirements of this section 
41.27 	are met.
41.28 		Subd. 2.Establishment of fire department. (a) An independent nonprofit firefighting 
41.29 	corporation must be created under the nonprofit corporation act of this state operating for 
41.30 	the exclusive purpose of firefighting, or the governing body of a municipality must officially 
41.31 	establish a fire department.
42.1 	(b) The fire department must have provided firefighting services for at least one calendar 
42.2 	year.
42.3 		Subd. 3.Personnel and benefits requirements. (a) A fire department must have a 
42.4 	minimum of ten paid or volunteer firefighters, including a fire chief and assistant fire chief.
42.5 	(b) The fire department must have regular scheduled meetings and frequent drills that 
42.6 	include instructions in firefighting tactics and in the use, care, and operation of all fire 
42.7 	apparatus and equipment.
42.8 	(c) The fire department must have a separate subsidiary incorporated firefighters' relief 
42.9 	association that provides retirement benefits or must participate in the voluntary statewide 
42.10 	volunteer firefighter retirement plan; or if the municipality solely employs full-time 
42.11 	firefighters as defined in section 299N.03, subdivision 5, retirement coverage must be 
42.12 	provided by the public employees police and fire retirement plan.
42.13 	(d) Notwithstanding paragraph (c), a municipality without a relief association as described 
42.14 	under section 424A.08, paragraph (a), may still qualify to receive fire state aid if all other 
42.15 	requirements of this section are met.
42.16 		Subd. 4.Equipment requirements. The fire department must have all of the following 
42.17 	equipment, or the equivalent as determined by the state fire marshal, by December 31 of 
42.18 	the year preceding the certification required in subdivision 8:
42.19 	(1) a motorized fire truck equipped with:
42.20 	(i) a motorized pump;
42.21 	(ii) a 250-gallon or larger water tank;
42.22 	(iii) 300 feet of one inch or larger fire hose in two lines with combination spray and 
42.23 	straight stream nozzles;
42.24 	(iv) five-gallon hand pumps - tank extinguisher or equivalent;
42.25 	(v) a dry chemical extinguisher or equivalent;
42.26 	(vi) ladders;
42.27 	(vii) extension ladders;
42.28 	(viii) pike poles;
42.29 	(ix) crowbars;
42.30 	(x) axes;
43.1 	(xi) lanterns; and
43.2 	(xii) fire coats, helmets, and boots;
43.3 	(2) the items in clause (1) suitably housed in a building of good construction with facilities 
43.4 	for care of hoses and equipment;
43.5 	(3) a reliable and adequate method of receiving fire alarms by telephone or with electric 
43.6 	siren and suitable means of sounding an alarm; and
43.7 	(4) if response is to be provided outside the corporate limits of the municipality where 
43.8 	the fire department is located, another piece of motorized apparatus to make the response.
43.9 		Subd. 5.Fire service contract or agreement; apportionment agreement filing 
43.10 	requirement. (a) Every municipality or independent nonprofit firefighting corporation must 
43.11 	file a copy of any duly executed and valid fire service contract or agreement with the 
43.12 	commissioner.
43.13 	(b) If more than one fire department provides service to a municipality, the fire 
43.14 	departments furnishing service must enter into an agreement apportioning among themselves 
43.15 	the percentage of the population and the percentage of the estimated market value of each 
43.16 	shared service fire department service area. The agreement must be in writing and must be 
43.17 	filed with the commissioner.
43.18 		Subd. 6.Compliance with rules. The fire department must meet all other requirements 
43.19 	that the commissioner establishes by rule.
43.20 		Subd. 7.Financial reporting requirements. The financial reporting requirements of 
43.21 	section 424A.014 must be satisfied.
43.22 		Subd. 8.PERA certification to commissioner. On or before February 1 each year, if 
43.23 	retirement coverage for a fire department is provided by the voluntary statewide volunteer 
43.24 	firefighter retirement plan, the executive director of the Public Employees Retirement 
43.25 	Association must certify the existence of retirement coverage.
43.26 		Subd. 9.Fire department certification to commissioner. On or before March 15 of 
43.27 	each year, the municipal clerk or the secretary, and the fire chief, must jointly certify to the 
43.28 	commissioner that the fire department exists and meets the qualification requirements of 
43.29 	this section. The certification must be on a form prescribed by the commissioner and must 
43.30 	include all other information that the commissioner requires.
43.31 		Subd. 10.Penalty for failure to file certification. (a) If the certification under 
43.32 	subdivision 9 is not filed with the commissioner on or before March 15, the commissioner 
44.1 	must notify the municipal clerk or the secretary that a penalty equal to a portion or all of 
44.2 	the current year aid will apply if the certification is not received within ten days of the 
44.3 	postmark date of the notification.
44.4 	(b) The penalty for failure to file the certification under subdivision 9 is equal to the 
44.5 	amount of fire state aid determined for the municipality or the independent nonprofit 
44.6 	firefighting corporation for the current year, multiplied by five percent for each week or 
44.7 	fraction of a week that the certification is late. The penalty must be computed beginning 
44.8 	ten days after the postmark date of the commissioner's notification. Aid amounts forfeited 
44.9 	as a result of the penalty revert to the state general fund. Failure to receive the certification 
44.10 	form is not a defense for a failure to file.
44.11 		Subd. 11.Determination by commissioner. The commissioner must determine which 
44.12 	municipalities and independent nonprofit firefighting corporations are qualified to receive 
44.13 	fire state aid directly or are qualified to receive the benefit of fire state aid paid to the 
44.14 	voluntary statewide volunteer firefighter retirement plan based on compliance with the 
44.15 	requirements of this section and the financial compliance report required under section 
44.16 	6.495, subdivision 3, if applicable. The commissioner may take into account any other 
44.17 	relevant information that comes to the attention of the commissioner when making the 
44.18 	determination.

44.19 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

44.20 	Sec. 3. [477B.03] CALCULATION OF FIRE STATE AID; APPEAL.
44.21 		Subdivision 1.Certification and calculation of fire state aid. (a) On or before October 
44.22 	l, the commissioner must calculate the amount of fire state aid that each municipality or 
44.23 	independent nonprofit firefighting corporation is to receive.
44.24 	(b) The commissioner must calculate an initial fire state aid allocation amount for each 
44.25 	municipality or independent nonprofit firefighting corporation under subdivision 4 and, if 
44.26 	applicable, a minimum fire state aid allocation amount for each municipality or independent 
44.27 	nonprofit firefighting corporation under subdivision 5. The municipality or independent 
44.28 	nonprofit firefighting corporation must be apportioned the greater of the amounts calculated 
44.29 	under subdivisions 4 and 5.
44.30 		Subd. 2.Apportionment of fire state aid. (a) The amount of fire state aid available for 
44.31 	apportionment, before the addition of the minimum fire state aid allocation amount under 
44.32 	subdivision 5, is equal to 107 percent of the amount of premium taxes paid to the state upon 
44.33 	the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the 
45.1 	commissioner by companies or insurance companies on the Minnesota Fire Premium Report. 
45.2 	This amount must be reduced by the amount required to pay the state auditor's costs and 
45.3 	expenses of the audits or exams of the firefighters' relief associations.
45.4 	(b) The total amount available for apportionment must not be less than two percent of 
45.5 	the premiums less return premiums reported to the commissioner by companies or insurance 
45.6 	companies on the Minnesota Fire Premium Report after subtracting the following amounts:
45.7 	(1) the amount required to pay the state auditor's costs and expenses of the audits or 
45.8 	exams of the firefighters' relief associations; and
45.9 	(2) one percent of the premiums reported by township mutual insurance companies and 
45.10 	mutual property and casualty companies with total assets of $5,000,000 or less.
45.11 	(c) The commissioner must apportion the fire state aid to each municipality or independent 
45.12 	nonprofit firefighting corporation qualified under section 477B.02 relative to the premiums 
45.13 	reported on the Minnesota Fire Premium Reports filed under this chapter.
45.14 	(d) The commissioner must calculate the percentage of increase or decrease reflected in 
45.15 	the apportionment over or under the previous year's available state aid using the same 
45.16 	premiums as a basis for comparison.
45.17 		Subd. 3.Population and estimated market value. (a) Official statewide federal census 
45.18 	figures must be used in calculations requiring the use of population figures under this chapter. 
45.19 	Increases or decreases in population disclosed by reason of any special census must not be 
45.20 	taken into consideration.
45.21 	(b) The latest available estimated market value property figures must be used in 
45.22 	calculations requiring the use of estimated market value property figures under this chapter.
45.23 		Subd. 4.Initial fire state aid allocation amount. (a) The initial fire state aid allocation 
45.24 	amount is the amount available for apportionment as fire state aid under subdivision 2, 
45.25 	without the inclusion of any additional funding amount to support a minimum fire state aid 
45.26 	amount under section 423A.02, subdivision 3. The initial fire state aid allocation amount 
45.27 	is allocated one-half in proportion to the population for each fire department service area 
45.28 	and one-half in proportion to the estimated market value of each fire department service 
45.29 	area, including (1) the estimated market value of tax-exempt property, and (2) the estimated 
45.30 	market value of natural resources lands receiving in lieu payments under sections 477A.11 
45.31 	to 477A.14 and 477A.17. The estimated market value of minerals is excluded.
45.32 	(b) In the case of a municipality or independent nonprofit firefighting corporation 
45.33 	furnishing fire protection to other municipalities as evidenced by valid fire service contracts 
46.1 	filed with the commissioner under section 477B.02, subdivision 5, the distribution must be 
46.2 	adjusted proportionately to take into consideration the crossover fire protection service. 
46.3 	Necessary adjustments must be made to subsequent apportionments.
46.4 	(c) In the case of municipalities or independent nonprofit firefighting corporations 
46.5 	qualifying for aid, the commissioner must calculate the state aid for the municipality or 
46.6 	independent nonprofit firefighting corporation on the basis of the population and the estimated 
46.7 	market value of the area furnished fire protection service by the fire department as evidenced 
46.8 	by fire service agreements filed with the commissioner under section 477B.02, subdivision 
46.9 	5.
46.10 	(d) In the case of more than one fire department furnishing contracted fire service to a 
46.11 	municipality, the population and estimated market value in the apportionment agreement 
46.12 	filed with the commissioner under section 477B.02, subdivision 5, must be used in calculating 
46.13 	the state aid.
46.14 		Subd. 5.Minimum fire state aid allocation amount. (a) The minimum fire state aid 
46.15 	allocation amount is the amount derived from any additional funding amount to support a 
46.16 	minimum fire state aid amount under section 423A.02, subdivision 3. The minimum fire 
46.17 	state aid allocation amount is allocated to municipalities or independent nonprofit firefighting 
46.18 	corporations with volunteer firefighters' relief associations or covered by the voluntary 
46.19 	statewide volunteer firefighter retirement plan. The amount is based on the number of active 
46.20 	volunteer firefighters who are (1) members of the relief association as reported to the Office 
46.21 	of the State Auditor in a specific annual financial reporting year as specified in paragraphs 
46.22 	(b) to (d), or (2) covered by the voluntary statewide volunteer firefighter retirement plan as 
46.23 	specified in paragraph (e).
46.24 	(b) For relief associations established in calendar year 1993 or a prior year, the number 
46.25 	of active volunteer firefighters equals the number of active volunteer firefighters who were 
46.26 	members of the relief association as reported in the annual financial reporting for calendar 
46.27 	year 1993, but not to exceed 30 active volunteer firefighters.
46.28 	(c) For relief associations established in calendar year 1994 through calendar year 1999, 
46.29 	the number of active volunteer firefighters equals the number of active volunteer firefighters 
46.30 	who were members of the relief association as reported in the annual financial reporting for 
46.31 	calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer 
46.32 	firefighters.
46.33 	(d) For relief associations established after calendar year 1999, the number of active 
46.34 	volunteer firefighters equals the number of active volunteer firefighters who are members 
47.1 	of the relief association as reported in the first annual financial reporting submitted to the 
47.2 	Office of the State Auditor, but not to exceed 20 active volunteer firefighters.
47.3 	(e) If a relief association is terminated as a result of providing retirement coverage for 
47.4 	volunteer firefighters by the voluntary statewide volunteer firefighter retirement plan under 
47.5 	chapter 353G, the number of active volunteer firefighters equals the number of active 
47.6 	volunteer firefighters of the municipality or independent nonprofit firefighting corporation 
47.7 	covered by the statewide plan as certified by the executive director of the Public Employees 
47.8 	Retirement Association to the commissioner and the state auditor, but not to exceed 30 
47.9 	active firefighters.
47.10 		Subd. 6.Corrective aid adjustments. Any adjustments needed to correct prior 
47.11 	misallocations must be made to subsequent fire state aid apportionments.
47.12 		Subd. 7.Appeal. A municipality, an independent nonprofit firefighting corporation, a 
47.13 	fire relief association, or the voluntary statewide volunteer firefighter retirement plan may 
47.14 	object to the amount of fire state aid apportioned to it by filing a written request with the 
47.15 	commissioner to review and adjust the apportionment of funds within the state. The decision 
47.16 	of the commissioner is subject to appeal, review, and adjustment by the district court in the 
47.17 	county in which the applicable municipality or independent nonprofit firefighting corporation 
47.18 	is located or by the Ramsey County District Court with respect to the voluntary statewide 
47.19 	volunteer firefighter retirement plan.

47.20 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

47.21 	Sec. 4. [477B.04] APPROPRIATION, PAYMENT, AND ADMINISTRATION.
47.22 		Subdivision 1.Payments. (a) The commissioner must make payments to the Public 
47.23 	Employees Retirement Association for deposit in the voluntary statewide volunteer firefighter 
47.24 	retirement fund on behalf of a municipality or independent nonprofit firefighting corporation 
47.25 	that is a member of the voluntary statewide volunteer firefighter retirement plan under 
47.26 	chapter 353G, or directly to a municipality or county designated by an independent nonprofit 
47.27 	firefighting corporation. The payment is equal to the amount of fire state aid apportioned 
47.28 	to the applicable fire state aid recipient under section 477B.03.
47.29 	(b) Fire state aid is payable on October 1 annually. The amount of state aid due and not 
47.30 	paid by October 1 accrues interest payable to the recipient at the rate of one percent for each 
47.31 	month or part of a month that the amount remains unpaid after October 1.
47.32 	(c) The interest under paragraph (b) does not apply when payment has not been made 
47.33 	by October 1 due to noncompliance with sections 424A.014 and 477B.02, subdivision 7.
48.1 		Subd. 2.Appropriation. The amount necessary to make the payments under this section 
48.2 	and section 477B.03 is annually appropriated to the commissioner from the general fund.
48.3 		Subd. 3.Deposit of state aid. (a) If the municipality or the independent nonprofit 
48.4 	firefighting corporation is covered by the voluntary statewide volunteer firefighter retirement 
48.5 	plan under chapter 353G, the executive director of the Public Employees Retirement 
48.6 	Association must credit the fire state aid against future municipal contribution requirements 
48.7 	under section 353G.08 and must notify the municipality or the independent nonprofit 
48.8 	firefighting corporation of the fire state aid so credited at least annually.
48.9 	(b) If the municipality or the independent nonprofit firefighting corporation is not covered 
48.10 	by the voluntary statewide volunteer firefighter retirement plan, the treasurer of the 
48.11 	municipality must, within 30 days after receipt, transmit the fire state aid to the treasurer 
48.12 	of the duly incorporated firefighters' relief association if there is one organized and the 
48.13 	association has filed a financial report with the municipality pursuant to section 424A.014, 
48.14 	subdivision 1 or 2, whichever applies. If the relief association has not filed a financial report 
48.15 	with the municipality, the treasurer of the municipality must delay transmission of the fire 
48.16 	state aid to the relief association until the complete financial report is filed.
48.17 	(c) The treasurer of the municipality must deposit the fire state aid money in the municipal 
48.18 	treasury if (1) the municipality or independent nonprofit firefighting corporation is not 
48.19 	covered by the voluntary statewide volunteer firefighter retirement plan, (2) there is no 
48.20 	relief association organized, (3) the association has dissolved, or (4) the association has 
48.21 	been removed as trustees of state aid. The money may be disbursed from the municipal 
48.22 	treasury only for the purposes and in the manner set forth in section 424A.08 or for the 
48.23 	payment of the employer contribution requirement with respect to firefighters covered by 
48.24 	the public employees police and fire retirement plan under section 353.65, subdivision 3.

48.25 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

48.26 	Sec. 5. [477B.05] SHORTFALL FROM GENERAL FUND.
48.27 	(a) If the annual funding requirements of fire relief associations or consolidation accounts 
48.28 	under sections 424A.091 to 424A.095 or Laws 2013, chapter 111, article 5, sections 31 to 
48.29 	42, exceed all applicable revenue sources of a given year, including the insurance premium 
48.30 	taxes funding fire state aid under this chapter as set under section 297I.05, subdivisions 2, 
48.31 	3, and 4, the shortfall in the annual funding requirements must be paid from the general 
48.32 	fund to the extent appropriated by the legislature.
49.1 	(b) Nothing in this section relieves any municipality from its obligation to a relief 
49.2 	association or consolidation account under law.

49.3 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

49.4 	Sec. 6. PURPOSE.
 49.5 	It is the intent of the legislature to make Minnesota's fire and police state aid laws more 
49.6 	understandable by separating and recodifying disparate administration and compliance 
49.7 	provisions currently contained in chapter 69 of Minnesota Statutes. Due to the complexity 
49.8 	of the recodification, prior provisions are repealed on the effective date of the new provisions.

49.9 	EFFECTIVE DATE. This section is effective July 1, 2019.

49.10 	Sec. 7.  REPEALER.
 49.11 	Minnesota Statutes 2018, sections 69.011, subdivisions 1, 2, 2b, 2c, 3, and 4; 69.021, 
49.12 	subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, and 11; 69.031, subdivisions 1, 3, and 5; and 69.041,
49.13 	are repealed.

49.14 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

49.15 	ARTICLE 8
49.16 	POLICE STATE AID; TECHNICAL CHANGES

49.17 	Section 1. [477C.01] DEFINITIONS.
49.18 		Subdivision 1.Scope. Unless the language or context clearly indicates that a different 
49.19 	meaning is intended, the following words and terms, for the purposes of this chapter and 
49.20 	chapter 423A have the meanings given to them.
49.21 		Subd. 2.Commissioner. "Commissioner" means the commissioner of revenue.
49.22 		Subd. 3.Company or insurance company. "Company" or "insurance company" has 
49.23 	the meaning given in section 60A.02, subdivision 4.
49.24 		Subd. 4.Minnesota Aid to Police Premium Report. "Minnesota Aid to Police Premium 
49.25 	Report" means a form for reporting the total gross premiums, less return premiums and 
49.26 	dividends, on all direct business received by an insurance company in this state during the 
49.27 	preceding calendar year, with reference to insurance written for perils contained in auto 
49.28 	insurance coverages as reported to the National Association of Insurance Commissioners 
49.29 	and the commissioner of commerce.
50.1 		Subd. 5.Municipal clerk, municipal clerk-treasurer, or county auditor. "Municipal 
50.2 	clerk," "municipal clerk-treasurer," or "county auditor" means:
50.3 	(1) the person elected or appointed to the position of municipal clerk, municipal 
50.4 	clerk-treasurer, or county auditor or, if there is no such person, the chief financial official 
50.5 	or the person primarily responsible for managing the finances of a municipality;
50.6 	(2) for a park district, the secretary of the board of park district commissioners;
50.7 	(3) for the University of Minnesota, the official designated by the Board of Regents;
50.8 	(4) for the Metropolitan Airports Commission, the person designated by the commission;
50.9 	(5) for the Departments of Natural Resources and Public Safety, the respective 
50.10 	commissioner of the agency; and
50.11 	(6) for a tribal police department that exercises state arrest powers under section 626.90, 
50.12 	626.91, 626.92, or 626.93, the person designated by the applicable American Indian tribal 
50.13 	government.
50.14 		Subd. 6.Municipality. (a) "Municipality" means:
50.15 	(1) a home rule charter or statutory city;
50.16 	(2) an organized town;
50.17 	(3) a county;
50.18 	(4) a park district subject to chapter 398;
50.19 	(5) the University of Minnesota;
50.20 	(6) an American Indian tribal government with a tribal police department that exercises 
50.21 	state arrest powers under section 626.90, 626.91, 626.92, or 626.93;
50.22 	(7) the Metropolitan Airports Commission; and
50.23 	(8) the Departments of Natural Resources and Public Safety with respect to peace officers 
50.24 	covered under chapter 352B.
50.25 	(b) This subdivision only applies to chapter 477C.
50.26 		Subd. 7.Peace officer. "Peace officer" means any person:
50.27 	(1) whose primary source of income derived from wages is from direct employment by 
50.28 	a municipality as a law enforcement officer on a full-time basis of not less than 30 hours 
50.29 	per week;
51.1 	(2) who has been employed for a minimum of six months before December 31 preceding 
51.2 	the date of the current year's certification under section 477C.02, subdivision 1;
51.3 	(3) who is sworn to enforce the general criminal laws of the state and local ordinances;
51.4 	(4) who is licensed by the Peace Officers Standards and Training Board and is authorized 
51.5 	to arrest with a warrant; and
51.6 	(5) who is a member of the State Patrol retirement plan or the public employees police 
51.7 	and fire fund.

51.8 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

51.9 	Sec. 2. [477C.02] QUALIFYING FOR POLICE STATE AID.
51.10 		Subdivision 1.Certification to commissioner. (a) A certification made under this 
51.11 	section must be filed with the commissioner on a form prescribed by the commissioner and 
51.12 	must include all other facts that the commissioner requires.
51.13 	(b) Except as provided in subdivision 2, on or before March 15 annually, the municipal 
51.14 	clerk, municipal clerk-treasurer, or county auditor of each municipality employing one or 
51.15 	more peace officers must certify to the commissioner the number of peace officers employed 
51.16 	during the previous calendar year. No peace officer may be included in the certification by 
51.17 	more than one municipality for the same month.
51.18 	(c) Credit for peace officers employed less than a full year must be apportioned. Each 
51.19 	full month of employment of a qualifying officer during the calendar year entitles the 
51.20 	employing municipality to credit for 1/12 of the payment for employment of a peace officer 
51.21 	for the entire year. For purposes of this chapter, employment of a peace officer begins when 
51.22 	the peace officer is entered on the payroll of the employing municipality.
51.23 		Subd. 2.Departments of Natural Resources and Public Safety. On or before March 
51.24 	15 annually, the commissioner of natural resources must certify the number of peace officers 
51.25 	employed by the Enforcement Division and the commissioner of public safety must certify 
51.26 	the number of peace officers employed by the Bureau of Criminal Apprehension, the 
51.27 	Gambling Enforcement Division, and the State Patrol Division. The certification must be 
51.28 	on the form described in subdivision 1, paragraph (a). Peace officers certified under this 
51.29 	subdivision must be included in the total certifications under subdivision 1.
51.30 		Subd. 3.Ineligibility of certain peace officers. A peace officer employed by the 
51.31 	University of Minnesota who is required by the Board of Regents to be a member of the 
52.1 	University of Minnesota faculty retirement plan is not eligible to be included in any police 
52.2 	state aid certification under this section.
52.3 		Subd. 4.Penalty for failure to file certification. (a) If a certification under subdivision 
52.4 	1 or 2 is not filed with the commissioner on or before March 15, the commissioner must 
52.5 	notify the municipal clerk, municipal clerk-treasurer, or county auditor that a penalty equal 
52.6 	to a portion or all of its current year aid will apply if the certification is not received within 
52.7 	ten days.
52.8 	(b) The penalty for failure to file the certification under subdivision 1 or 2 is equal to 
52.9 	the amount of police state aid determined for the municipality for the current year, multiplied 
52.10 	by five percent for each week or fraction of a week that the certification is late. The penalty 
52.11 	must be computed beginning ten days after the postmark date of the commissioner's 
52.12 	notification as required under this subdivision. All aid amounts forfeited as a result of the 
52.13 	penalty revert to the state general fund. Failure to receive the certification form may not be 
52.14 	used as a defense for a failure to file.
52.15 		Subd. 5.Determination by commissioner. The commissioner must determine which 
52.16 	municipalities are qualified to receive police state aid based on compliance with the 
52.17 	requirements of this section. The commissioner may take into account any other relevant 
52.18 	information that comes to the attention of the commissioner when making the determination.

52.19 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

52.20 	Sec. 3. [477C.03] CALCULATION OF POLICE STATE AID; APPEAL.
52.21 		Subdivision 1.Certification and calculation of police state aid. (a) On or before 
52.22 	October 1, the commissioner must calculate the amount of police state aid that each 
52.23 	municipality is to receive.
52.24 	(b) The commissioner must calculate an excess police state aid amount for each 
52.25 	municipality under subdivision 3 and must reduce the apportionment amount for each 
52.26 	municipality based on the calculation.
52.27 		Subd. 2.Apportionment of police state aid. (a) The total amount available for 
52.28 	apportionment as police state aid is equal to 104 percent of the amount of premium taxes 
52.29 	paid to the state on the premiums reported to the commissioner by companies or insurance 
52.30 	companies on the Minnesota Aid to Police Premium Report. The total amount for 
52.31 	apportionment for the police state aid program must not be less than two percent of the 
52.32 	amount of premiums reported to the commissioner by companies or insurance companies 
52.33 	on the Minnesota Aid to Police Premium Report.
53.1 	(b) The commissioner must calculate the percentage of increase or decrease reflected in 
53.2 	the apportionment over or under the previous year's available state aid using the same 
53.3 	premiums as a basis for comparison.
53.4 	(c) In addition to the amount for apportionment of police state aid under paragraph (a), 
53.5 	each year $100,000 must be apportioned for police state aid. An amount sufficient to pay 
53.6 	this increase is annually appropriated from the general fund.
53.7 	(d) The commissioner must apportion police state aid to all municipalities in proportion 
53.8 	to the relationship that the total number of peace officers employed by that municipality for 
53.9 	the prior calendar year and the proportional or fractional number who were employed less 
53.10 	than a calendar year as credited under section 477C.02, subdivision 1, paragraph (c), bears 
53.11 	to the total number of peace officers employed by all municipalities subject to any reduction 
53.12 	under subdivision 3.
53.13 	(e) Any necessary additional adjustments must be made to subsequent police state aid 
53.14 	apportionments.
53.15 		Subd. 3.Apportionment reduction; excess police state aid. (a) The commissioner 
53.16 	must reduce the apportionment of police state aid under this section for eligible municipalities 
53.17 	by the amount of any excess police state aid calculated under this subdivision.
53.18 	(b) The commissioner must calculate the amount of excess police state aid for each 
53.19 	municipality as follows:
53.20 	(1) for municipalities in which police retirement coverage is provided wholly by the 
53.21 	public employees police and fire fund and all peace officers are members of the plan governed 
53.22 	by sections 353.63 to 353.657, the excess police state aid amount equals the amount of 
53.23 	police state aid apportioned under subdivision 2 that exceeds the employer's total prior 
53.24 	calendar year obligation as defined in paragraph (c), as certified by the executive director 
53.25 	of the Public Employees Retirement Association;
53.26 	(2) for the Metropolitan Airports Commission, the excess police state aid amount equals 
53.27 	the amount of apportioned police aid calculated under subdivision 2 that exceeds the 
53.28 	commission's total prior calendar year obligation as defined in paragraph (c), as certified 
53.29 	by the executive director of the Public Employees Retirement Association; and
53.30 	(3) for the Departments of Natural Resources and Public Safety, the excess police state 
53.31 	aid amount equals the amount of apportioned police aid calculated under subdivision 2 that 
53.32 	exceeds the employer's total prior calendar year obligation under section 352B.02, subdivision 
54.1 	1c, for plan members who are peace officers, as certified by the executive director of the 
54.2 	Minnesota State Retirement System.
54.3 	(c) The municipality's total prior calendar year obligation with respect to the public 
54.4 	employees police and fire plan under paragraph (b), clause (1), is the total prior calendar 
54.5 	year obligation under section 353.65, subdivision 3, for police officers as defined in section 
54.6 	353.64, subdivisions 1, la, and 2, and the actual total prior calendar year obligation under 
54.7 	section 353.65, subdivision 3, for firefighters, as defined in section 353.64, subdivisions 1, 
54.8 	la, and 2, but not to exceed for those firefighters the applicable following employer calendar 
54.9 	year amount:

54.10		Municipality
	Maximum Amount
		
54.11		Albert Lea
	$54,157.01
		
54.12		Anoka
	10,399.31
		
54.13		Apple Valley
	5,442.44
		
54.14		Austin
	49,864.73
		
54.15		Bemidji
	27,671.38
		
54.16		Brooklyn Center
	6,605.92
		
54.17		Brooklyn Park
	24,002.26
		
54.18		Burnsville
	15,956.00
		
54.19		Cloquet
	4,260.49
		
54.20		Coon Rapids
	39,920.00
		
54.21		Cottage Grove
	8,588.48
		
54.22		Crystal
	5,855.00
		
54.23		East Grand Forks
	51,009.88
		
54.24		Edina
	32,251.00
		
54.25		Elk River
	5,216.55
		
54.26		Ely
	13,584.16
		
54.27		Eveleth
	16,288.27
		
54.28		Fergus Falls
	6,742.00
		
54.29		Fridley
	33,420.64
		
54.30		Golden Valley
	11,744.61
		
54.31		Hastings
	16,561.00
		
54.32		Hopkins
	4,324.23
		
54.33		International Falls
	14,400.69
		
54.34		Lakeville
	782.35
		
54.35		Lino Lakes
	5,324.00
		
54.36		Little Falls
	7,889.41
		
54.37		Maple Grove
	6,707.54
		
55.1		Maplewood
	8,476.69
		
55.2		Minnetonka
	10,403.00
		
55.3		Montevideo
	1,307.66
		
55.4		Moorhead
	68,069.26
		
55.5		New Hope
	6,739.72
		
55.6		North St. Paul
	4,241.14
		
55.7		Northfield
	770.63
		
55.8		Owatonna
	37,292.67
		
55.9		Plymouth
	6,754.71
		
55.10		Red Wing
	3,504.01
		
55.11		Richfield
	53,757.96
		
55.12		Rosemount
	1,712.55
		
55.13		Roseville
	9,854.51
		
55.14		St. Anthony
	33,055.00
		
55.15		St. Louis Park
	53,643.11
		
55.16		Thief River Falls
	28,365.04
		
55.17		Virginia
	31,164.46
		
55.18		Waseca
	11,135.17
		
55.19		West St. Paul
	15,707.20
		
55.20		White Bear Lake
	6,521.04
		
55.21		Woodbury
	3,613.00
		
55.22		any other municipality
	0.00
		
55.23 	(d) The total amount of excess police state aid must be deposited in the excess police 
55.24 	state aid account in the general fund, and administered and distributed as provided in 
55.25 	subdivision 4.
55.26 		Subd. 4.Excess police state aid holding account. (a) The excess police state aid holding 
55.27 	account is established in the general fund. The excess police state aid holding account is 
55.28 	administered by the commissioner.
55.29 	(b) Excess police state aid determined under subdivision 3 must be deposited annually 
55.30 	in the excess police state aid holding account.
55.31 	(c) From the balance in the excess police state aid holding account, $900,000 must be 
55.32 	canceled annually to the general fund.
55.33 	(d) On October 1 annually, one-half of the balance of the excess police state aid holding 
55.34 	account remaining after the deduction under paragraph (c) is appropriated for additional 
55.35 	amortization aid under section 423A.02, subdivision 1b.
56.1 	(e) The remaining balance in the excess police state aid holding account, after the 
56.2 	deductions under paragraphs (c) and (d), must be canceled annually to the general fund.
56.3 		Subd. 5.Appeal. A municipality may object to the amount of police state aid apportioned 
56.4 	to it by filing a written request with the commissioner to review and adjust the apportionment 
56.5 	of funds to the municipality. The decision of the commissioner is subject to appeal, review, 
56.6 	and adjustment by the district court in the county in which the applicable municipality is 
56.7 	located or by the Ramsey County District Court with respect to the Departments of Natural 
56.8 	Resources or Public Safety.

56.9 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

56.10 	Sec. 4. [477C.04] APPROPRIATION, PAYMENT, AND ADMINISTRATION.
56.11 		Subdivision 1.Payments. (a) The commissioner must make payments to the municipality 
56.12 	equal to the amount of police state aid apportioned to the applicable state aid recipient under 
56.13 	section 477C.03.
56.14 	(b) Police state aid is payable on October 1 annually. The amount of state aid due and 
56.15 	not paid by October 1 accrues interest payable to the recipient at the rate of one percent for 
56.16 	each month or part of a month that the amount remains unpaid after October 1.
56.17 		Subd. 2.Appropriation. (a) The amount necessary to make the payments under this 
56.18 	section and section 477C.03 is annually appropriated to the commissioner from the general 
56.19 	fund.
56.20 	(b) The police state aid apportioned to the Departments of Public Safety and Natural 
56.21 	Resources under section 477C.03 is allocated to the commissioner of management and 
56.22 	budget for transfer to the funds and accounts from which the salaries of peace officers 
56.23 	certified under section 477C.02, subdivision 2, are paid. On or before October l, the 
56.24 	commissioner of revenue must certify to the commissioners of public safety, natural 
56.25 	resources, and management and budget the amounts to be transferred from the appropriation 
56.26 	for police state aid. The commissioners of public safety and natural resources must certify 
56.27 	to the commissioner of management and budget the amounts to be credited to each of the 
56.28 	funds and accounts from which the peace officers employed by their respective departments 
56.29 	are paid.
56.30 		Subd. 3.Deposit of state aid. (a) For a municipality in which police retirement coverage 
56.31 	is provided by the public employees police and fire fund and all peace officers are members 
56.32 	of the fund, including municipalities covered by section 353.665, the total state aid must 
57.1 	be applied toward the municipality's employer contribution to the public employees police 
57.2 	and fire fund under sections 353.65, subdivision 3, and 353.665, subdivision 8.
57.3 	(b) The county treasurer, upon receipt of the police state aid for the county, must apply 
57.4 	the total state aid toward the county's employer contribution to the public employees police 
57.5 	and fire fund under section 353.65, subdivision 3.
57.6 	(c) The designated Metropolitan Airports Commission official, upon receipt of the police 
57.7 	state aid for the Metropolitan Airports Commission, must apply the total police state aid 
57.8 	toward the commission's employer contribution for peace officers to the public employees 
57.9 	police and fire plan under section 353.65, subdivision 3.
57.10 	(d) The commissioners of public safety and natural resources must allocate the police 
57.11 	state aid first for employer contributions funded from the general fund and then for employer 
57.12 	contributions funded from other funds. For peace officers employed by the Departments of 
57.13 	Natural Resources or Public Safety whose salaries are paid from the general fund, the 
57.14 	amounts transferred from the appropriation for police state aid must be canceled to the 
57.15 	general fund.

57.16 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

57.17 	ARTICLE 9
57.18 	FIRE AND POLICE STATE AID; MISCELLANEOUS TECHNICAL CHANGES

57.19 	Section 1. [297I.26] FIRE AND POLICE PREMIUM REPORTS.
57.20 		Subdivision 1.Filing reports. (a) Each company must file with the commissioner the 
57.21 	reports defined in sections 477B.01, subdivision 8, and 477C.01, subdivision 4, signed by 
57.22 	the authorized representative of the company, on or before March 1 annually. The fire and 
57.23 	extended coverage portion of multiperil package premiums and all other combination 
57.24 	premiums must be determined by applying percentages determined by the commissioner 
57.25 	or by rating bureaus recognized by the commissioner. The commissioner shall prescribe 
57.26 	the content, form, and manner of the reports.
57.27 	(b) The commissioner must notify each company that fails to timely file the report 
57.28 	required under paragraph (a). The notice must demand that the company file the report 
57.29 	within 30 days. Where good cause exists, the commissioner may extend the period for filing 
57.30 	the report as long as a request for extension is filed by the company before the expiration 
57.31 	of the 30-day period.
58.1 		Subd. 2.Penalties. (a) A company that fails to file the report on or before the due date 
58.2 	in subdivision 1 is liable for a penalty equal to $25 for each seven days, or fraction thereof, 
58.3 	that the report is delinquent, but not to exceed $200.
58.4 	(b) Any person whose duty it is to file the report and who fails or refuses to file within 
58.5 	30 days after the postmark of the notice in subdivision 1 must be fined an amount of no 
58.6 	more than $1,000.
58.7 	(c) Any company that knowingly makes and files an inaccurate or false report is liable 
58.8 	for a fine in an amount not less than $25 nor more than $1,000, as determined by the 
58.9 	commissioner, and the commissioner of commerce may revoke the company's certificate 
58.10 	of authority.

58.11 	EFFECTIVE DATE. This section is effective for reports filed after December 31, 2019.

58.12 	Sec. 2. [424A.014] FINANCIAL REPORT; BOND; EXAMINATION.
58.13 		Subdivision 1.Financial report and audit. (a) The board of the Bloomington Fire 
58.14 	Department Relief Association and each volunteer firefighters relief association with assets 
58.15 	of at least $500,000 or liabilities of at least $500,000 in the prior year or in any previous 
58.16 	year, according to the applicable actuarial valuation or according to the financial report if 
58.17 	no valuation is required, must prepare a financial report covering the special and general 
58.18 	funds of the relief association for the preceding fiscal year, file the financial report, and 
58.19 	submit financial statements.
58.20 	(b) The financial report must contain financial statements and disclosures that present 
58.21 	the true financial condition of the relief association and the results of relief association 
58.22 	operations in conformity with generally accepted accounting principles and in compliance 
58.23 	with the regulatory, financing, and funding provisions of this chapter and any other applicable 
58.24 	laws. The financial report must be countersigned by:
58.25 	(1) the municipal clerk or clerk-treasurer of the municipality in which the relief 
58.26 	association is located if the relief association is a firefighters' relief association that is directly 
58.27 	associated with a municipal fire department;
58.28 	(2) the municipal clerk or clerk-treasurer of the largest municipality in population that 
58.29 	contracts with the independent nonprofit firefighting corporation if the volunteer firefighter 
58.30 	relief association is a subsidiary of an independent nonprofit firefighting corporation, and 
58.31 	by the secretary of the independent nonprofit firefighting corporation; or
59.1 	(3) the chief financial official of the county in which the volunteer firefighter relief 
59.2 	association is located or primarily located if the relief association is associated with a fire 
59.3 	department that is not located in or associated with an organized municipality.
59.4 	(c) The financial report must be retained in the office of the Bloomington Fire Department 
59.5 	Relief Association or the volunteer firefighter relief association for public inspection and 
59.6 	must be filed with the governing body of the government subdivision in which the associated 
59.7 	fire department is located after the close of the fiscal year. One copy of the financial report 
59.8 	must be furnished to the state auditor after the close of the fiscal year.
59.9 	(d) Audited financial statements must be attested to by a certified public accountant or 
59.10 	by the state auditor and must be filed with the state auditor on or before June 30 after the 
59.11 	close of the fiscal year. The state auditor may accept this report in lieu of the report required 
59.12 	in paragraph (c).
59.13 		Subd. 2.Financial statement. (a) The board of each volunteer firefighter relief 
59.14 	association that is not required to file a financial report and audit under subdivision 1 must 
59.15 	prepare a detailed statement of the financial affairs for the preceding fiscal year of the relief 
59.16 	association's special and general funds in the style and form prescribed by the state auditor. 
59.17 	The detailed statement must show:
59.18 	(1) the sources and amounts of all money received;
59.19 	(2) all disbursements, accounts payable, and accounts receivable;
59.20 	(3) the amount of money remaining in the treasury;
59.21 	(4) total assets, including a listing of all investments;
59.22 	(5) the accrued liabilities; and
59.23 	(6) all other items necessary to show accurately the revenues and expenditures and 
59.24 	financial position of the relief association.
59.25 	(b) The detailed financial statement of the special and general funds required under 
59.26 	paragraph (a) must be certified by a certified public accountant or by the state auditor in 
59.27 	accordance with agreed-upon procedures and forms prescribed by the state auditor. The 
59.28 	accountant must have at least five years of public accounting, auditing, or similar experience 
59.29 	and must not be an active, inactive, or retired member of the relief association or the fire 
59.30 	department.
59.31 	(c) The detailed financial statement required under paragraph (a) must be countersigned 
59.32 	by:
60.1 	(1) the municipal clerk or clerk-treasurer of the municipality;
60.2 	(2) where applicable, the municipal clerk or clerk-treasurer of the largest municipality 
60.3 	in population that contracts with the independent nonprofit firefighting corporation if the 
60.4 	relief association is a subsidiary of an independent nonprofit firefighting corporation, and 
60.5 	by the secretary of the independent nonprofit firefighting corporation; or
60.6 	(3) the chief financial official of the county in which the volunteer firefighter relief 
60.7 	association is located or primarily located if the relief association is associated with a fire 
60.8 	department that is not located in or associated with an organized municipality.
60.9 	(d) The volunteer firefighters relief association board must submit a copy of the detailed 
60.10 	financial statement required under paragraph (a) that has been certified by the governing 
60.11 	body of the municipality to the state auditor on or before March 31 after the close of the 
60.12 	fiscal year.
60.13 	(e) A certified public accountant or auditor who performs the agreed-upon procedures 
60.14 	under paragraph (b) is subject to the reporting requirement of section 6.67.
60.15 		Subd. 3.Qualification. The state auditor may, upon a demonstration by a relief 
60.16 	association of hardship or an inability to conform, extend the deadline for reports under 
60.17 	subdivision 1 or 2, but not beyond November 30 following the due date. If the reports are 
60.18 	not received by November 30, the municipality or relief association forfeits its current year 
60.19 	state aid, and, until the state auditor receives the required information, the relief association 
60.20 	or municipality is ineligible to receive any future state aid. A municipality or relief association 
60.21 	does not qualify initially to receive, or be entitled subsequently to retain, fire state aid and 
60.22 	police and firefighter retirement supplemental state aid payable under chapter 477B and 
60.23 	section 423A.022 if the financial reporting requirement or the applicable requirements of 
60.24 	this chapter or any other statute or special law have not been complied with or are not 
60.25 	fulfilled.
60.26 		Subd. 4.Treasurer bond. (a) The treasurer of the Bloomington Fire Department Relief 
60.27 	Association may not enter upon duties without having given the association a bond in a 
60.28 	reasonable amount acceptable to the municipality for the faithful discharge of duties 
60.29 	according to law.
60.30 	(b) No treasurer of a relief association governed by sections 424A.091 to 424A.096 may 
60.31 	enter upon the duties of the office until the treasurer has given the association a good and 
60.32 	sufficient bond in an amount equal to at least ten percent of the assets of the relief association; 
60.33 	however, the amount of the bond need not exceed $500,000.
61.1 		Subd. 5.Report by certain municipalities; exceptions. (a) The chief administrative 
61.2 	officer of each municipality that has a fire department but does not have a relief association 
61.3 	governed by sections 424A.091 to 424A.095 or Laws 2014, chapter 275, article 2, section 
61.4 	23, and that is not exempted under paragraph (b) or (c) must annually prepare a detailed 
61.5 	financial report of the receipts and disbursements by the municipality for fire protection 
61.6 	service during the preceding calendar year on a form prescribed by the state auditor. The 
61.7 	financial report must contain any information that the state auditor deems necessary to 
61.8 	disclose the sources of receipts and the purpose of disbursements for fire protection service. 
61.9 	The financial report must be signed by the municipal clerk or clerk-treasurer with the state 
61.10 	auditor on or before July 1 annually. The municipality does not qualify initially to receive, 
61.11 	and is not entitled subsequently to retain, any fire state aid and police and firefighter 
61.12 	retirement supplemental state aid payable under chapter 477B and section 423A.022 if the 
61.13 	financial reporting requirement or the applicable requirements of any other statute or special 
61.14 	law have not been complied with or are not fulfilled.
61.15 	(b) Each municipality that has a fire department and provides retirement coverage to its 
61.16 	firefighters through the voluntary statewide volunteer firefighter retirement plan under 
61.17 	chapter 353G qualifies to have fire state aid transmitted to and retained in the statewide 
61.18 	volunteer firefighter retirement fund without filing a detailed financial report if the executive 
61.19 	director of the Public Employees Retirement Association certifies compliance by the 
61.20 	municipality with the requirements of sections 353G.04 and 353G.08, subdivision 1, 
61.21 	paragraph (e), and certifies conformity by the applicable fire chief with the requirements 
61.22 	of section 353G.07.
61.23 	(c) Each municipality qualifies to receive fire state aid under chapter 477B without filing 
61.24 	a financial report under paragraph (a) if the municipality:
61.25 	(1) has a fire department;
61.26 	(2) does not have a volunteer firefighters relief association directly associated with its 
61.27 	fire department;
61.28 	(3) does not participate in the statewide volunteer firefighter retirement plan under 
61.29 	chapter 353G;
61.30 	(4) provides retirement coverage to its firefighters through the public employees police 
61.31 	and fire retirement plan under sections 353.63 to 353.68; and
61.32 	(5) is certified by the executive director of the Public Employees Retirement Association 
61.33 	to the state auditor to have had an employer contribution under section 353.65, subdivision 
62.1 	3, for its firefighters for the immediately prior calendar year equal to or greater than its fire 
62.2 	state aid for the immediately prior calendar year.
62.3 		Subd. 6.Notification by commissioner of revenue and state auditor. (a) The state 
62.4 	auditor, in performing an audit or examination, must notify the Legislative Commission on 
62.5 	Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or 
62.6 	nonfeasance in office by relief association officials or municipal officials.
62.7 	(b) The commissioner of revenue must notify the Legislative Commission on Pensions 
62.8 	and Retirement if the state auditor has not filed the required financial compliance reports 
62.9 	by July 1.

62.10 	EFFECTIVE DATE. This section is effective July 1, 2019.

62.11 	Sec. 3. Minnesota Statutes 2018, section 424A.05, is amended by adding a subdivision to 
62.12 	read:
62.13 		Subd. 3b.Authorized administrative expenses from special fund. (a) Notwithstanding 
62.14 	any provision of law to the contrary, the payment of the following necessary, reasonable, 
62.15 	and direct expenses of maintaining, protecting, and administering the special fund, when 
62.16 	provided for in the bylaws of the association and approved by the board of trustees, 
62.17 	constitutes authorized administrative expenses of a volunteer firefighters relief association 
62.18 	organized under any law of the state or the Bloomington Fire Department Relief Association:
62.19 	(1) office expenses, including but not limited to rent, utilities, equipment, supplies, 
62.20 	postage, periodical subscriptions, furniture, fixtures, and salaries of administrative personnel;
62.21 	(2) salaries of the officers of the association or their designees, and salaries of the 
62.22 	members of the board of trustees of the association if the salary amounts are approved by 
62.23 	the governing body of the entity that is responsible for meeting any minimum obligation 
62.24 	under section 424A.092 or 424A.093 or Laws 2013, chapter 111, article 5, sections 31 to 
62.25 	42, and the itemized expenses of relief association officers and board members that are 
62.26 	incurred as a result of fulfilling their responsibilities as administrators of the special fund;
62.27 	(3) tuition, registration fees, organizational dues, and other authorized expenses of the 
62.28 	officers or members of the board of trustees incurred in attending educational conferences, 
62.29 	seminars, or classes relating to the administration of the relief association;
62.30 	(4) audit and audit-related services, accounting and accounting-related services, and 
62.31 	actuarial, medical, legal, and investment and performance evaluation expenses;
63.1 	(5) filing and application fees payable by the relief association to federal or other 
63.2 	government entities;
63.3 	(6) reimbursement to the officers and members of the board of trustees or their designees, 
63.4 	for reasonable and necessary expenses actually paid and incurred in the performance of 
63.5 	their duties as officers or members of the board; and
63.6 	(7) premiums on fiduciary liability insurance and official bonds for the officers, members 
63.7 	of the board of trustees, and employees of the relief association.
63.8 	(b) All other expenses of the relief association must be paid from the general fund of 
63.9 	the association if one exists. If a relief association has only one fund, that fund is the special 
63.10 	fund for purposes of this subdivision. If a relief association has a special fund and a general 
63.11 	fund, the payment of any expense of the relief association that is directly related to the 
63.12 	purposes for which both funds were established must be apportioned between the two funds 
63.13 	on the basis of the benefits derived by each fund.

63.14 	EFFECTIVE DATE. This section is effective July 1, 2019.

63.15 	Sec. 4.  REPEALER.
 63.16 	(a) Minnesota Statutes 2018, sections 69.051, subdivisions 1, 1a, 1b, 2, 3, and 4; and 
63.17 	69.80, are repealed.
63.18 	(b) Minnesota Statutes 2018, sections 69.33; and 297I.25, subdivision 2, are repealed.

63.19 	EFFECTIVE DATE. Paragraph (a) is effective July 1, 2019. Paragraph (b) is effective 
63.20 	for reports filed after December 31, 2019.

63.21 	ARTICLE 10
63.22 	FIRE AND POLICE STATE AID; CONFORMING CHANGES

63.23 	Section 1. Minnesota Statutes 2018, section 6.495, subdivision 3, is amended to read:
63.24 		Subd. 3.Report to commissioner of revenue. The state auditor shall file with the 
63.25 	commissioner of revenue a financial compliance report certifying for each relief association:
63.26 	(1) the completion of the annual financial report required under section 69.051 424A.014
63.27 	and the auditing or certification of those financial reports under subdivision 1; and
63.28 	(2) the receipt of any actuarial valuations required under section 424A.093 or Laws 
63.29 	2013, chapter 111, article 5, sections 31 to 42.

63.30 	EFFECTIVE DATE. This section is effective July 1, 2019.

64.1 	Sec. 2. Minnesota Statutes 2018, section 144E.42, subdivision 2, is amended to read:
64.2 		Subd. 2.Trust account. (a) There is established in the general fund the Cooper/Sams 
64.3 	volunteer ambulance trust account and the Cooper/Sams volunteer ambulance award and 
64.4 	account.
64.5 	(b) The trust account must be credited with:
64.6 	(1) general fund appropriations for that purpose;
64.7 	(2) transfers from the Cooper/Sams volunteer ambulance award and account; and
64.8 	(3) investment earnings on those accumulated proceeds. The assets and income of the 
64.9 	trust account must be held and managed by the commissioner of management and budget 
64.10 	and the State Board of Investment for the benefit of the state of Minnesota and its general 
64.11 	creditors.
64.12 	(c) The Cooper/Sams volunteer ambulance account must be credited with transfers from 
64.13 	the excess police state-aid holding account established in section 69.021, subdivision 11
64.14 	477C.03, subdivision 4, any per-year-of-service allocation under section 144E.45, subdivision 
64.15 	2, paragraph (c), that was not made for an individual, and investment earnings on those 
64.16 	accumulated proceeds. The Cooper/Sams volunteer ambulance account must be managed 
64.17 	by the commissioner of management and budget and the State Board of Investment. From 
64.18 	the Cooper/Sams volunteer ambulance account to the trust account there must be transferred 
64.19 	to the Cooper/Sams volunteer ambulance trust account, as the Cooper/Sams volunteer 
64.20 	ambulance account balance permits, the following amounts:
64.21 	(1) an amount equal to any general fund appropriation to the Cooper/Sams volunteer 
64.22 	ambulance trust account for that fiscal year; and
64.23 	(2) an amount equal to the percentage of the remaining balance in the account after the 
64.24 	deduction of the amount under clause (1), as specified for the applicable fiscal year:

64.25	Fiscal year
	Percentage
	
64.26		1995
	20
		
64.27		1996
	40
		
64.28		1997
	50
		
64.29		1998
	60
		
64.30		1999
	70
		
64.31		2000
	80
		
64.32		2001
	90
		
64.33		2002 and thereafter
	100

65.1 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

65.2 	Sec. 3. Minnesota Statutes 2018, section 297I.20, subdivision 3, is amended to read:
65.3 		Subd. 3.Historic structure rehabilitation credit. An insurance company may claim 
65.4 	a credit against the premiums tax imposed under this chapter equal to the amount of the 
65.5 	credit certificate issued to it, or to a person who has assigned the credit to the insurance 
65.6 	company, under section 290.0681. If the amount of the credit exceeds the liability for tax 
65.7 	under this chapter, the commissioner shall refund the excess to the insurance company. An 
65.8 	amount sufficient to pay the refunds under this section is appropriated to the commissioner 
65.9 	from the general fund. This credit does not affect the calculation of police and fire state aid 
65.10 	under section 69.021 477B.03 and police state aid under section 477C.03.

65.11 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

65.12 	Sec. 4. Minnesota Statutes 2018, section 353G.01, subdivision 9, is amended to read:
65.13 		Subd. 9.Municipality. "Municipality" means a governmental entity specified in section 
65.14 	69.011, subdivision 1, paragraph (b), clauses (1), (2), and (5) 477B.01, subdivision 10, a 
65.15 	city or township that has entered into a contract with an independent nonprofit firefighting 
65.16 	corporation, or a city or township that has entered into a contract with a joint powers entity 
65.17 	established under section 471.59.

65.18 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

65.19 	Sec. 5. Minnesota Statutes 2018, section 353G.05, subdivision 2, is amended to read:
65.20 		Subd. 2.Election of coverage; lump sum. (a) The process for electing coverage of 
65.21 	volunteer firefighters by the lump-sum retirement division is initiated by a request to the 
65.22 	executive director for a cost analysis of the prospective retirement coverage under the 
65.23 	lump-sum retirement division.
65.24 	(b) If the volunteer firefighters are currently covered by a lump-sum volunteer firefighter 
65.25 	relief association or a defined contribution volunteer firefighter relief association governed 
65.26 	by chapter 424A, the cost analysis of the prospective retirement coverage must be requested 
65.27 	jointly by the secretary of the volunteer firefighter relief association, following approval of 
65.28 	the request by the board of the volunteer firefighter relief association, and the chief 
65.29 	administrative officer of the entity associated with the relief association, following approval 
65.30 	of the request by the governing body of the entity associated with the relief association. If 
65.31 	the relief association is associated with more than one entity, the chief administrative officer 
65.32 	of each associated entity must execute the request. If the volunteer firefighters are not 
66.1 	currently covered by a volunteer firefighter relief association, the cost analysis of the 
66.2 	prospective retirement coverage must be requested by the chief administrative officer of 
66.3 	the entity operating the fire department. The request must be made in writing and must be 
66.4 	made on a form prescribed by the executive director.
66.5 	(c) The cost analysis of the prospective retirement coverage by the lump-sum retirement 
66.6 	division of the statewide retirement plan must be based on the service pension amount under 
66.7 	section 353G.11 closest to the service pension amount provided by the volunteer firefighter 
66.8 	relief association if the relief association is a lump-sum defined benefit plan, or the amount 
66.9 	equal to 95 percent of the most current average account balance per relief association member 
66.10 	if the relief association is a defined contribution plan, or to the lowest service pension amount 
66.11 	under section 353G.11 if there is no volunteer firefighter relief association, rounded up, and 
66.12 	any other service pension amount designated by the requester or requesters. The cost analysis 
66.13 	must be prepared using a mathematical procedure certified as accurate by an approved 
66.14 	actuary retained by the Public Employees Retirement Association.
66.15 	(d) If a cost analysis is requested and a volunteer firefighters' firefighters relief association 
66.16 	exists that has filed the information required under section 69.051 424A.014 in a timely 
66.17 	fashion, upon request by the executive director, the state auditor shall provide the most 
66.18 	recent data available on the financial condition of the volunteer firefighter relief association, 
66.19 	the most recent firefighter demographic data available, and a copy of the current relief 
66.20 	association bylaws. If a cost analysis is requested, but no volunteer firefighter relief 
66.21 	association exists, the chief administrative officer of the entity operating the fire department 
66.22 	shall provide the demographic information on the volunteer firefighters serving as members 
66.23 	of the fire department requested by the executive director.

66.24 	EFFECTIVE DATE. This section is effective July 1, 2019.

66.25 	Sec. 6. Minnesota Statutes 2018, section 353G.08, subdivision 1, is amended to read:
66.26 		Subdivision 1.Annual funding requirements; lump-sum retirement division. (a) 
66.27 	Annually, the executive director shall determine the funding requirements of each account 
66.28 	in the lump-sum retirement division of the voluntary statewide volunteer firefighter retirement 
66.29 	plan on or before August 1. The funding requirements computed under this subdivision 
66.30 	must be determined using a mathematical procedure developed and certified as accurate by 
66.31 	the approved actuary retained by the Public Employees Retirement Association and must 
66.32 	be based on present value factors using a six percent interest rate, without any decrement 
66.33 	assumptions. The funding requirements must be certified to the entity or entities associated 
66.34 	with the fire department whose active firefighters are covered by the retirement plan.
67.1 	(b) The overall funding balance of each lump-sum account for the current calendar year 
67.2 	must be determined in the following manner:
67.3 	(1) The total accrued liability for all active and deferred members of the account as of 
67.4 	December 31 of the current year must be calculated based on the good time service credit 
67.5 	of active and deferred members as of that date.
67.6 	(2) The total present assets of the account projected to December 31 of the current year, 
67.7 	including receipts by and disbursements from the account anticipated to occur on or before 
67.8 	December 31, must be calculated. To the extent possible, the market value of assets must 
67.9 	be utilized in making this calculation.
67.10 	(3) The amount of the total present assets calculated under clause (2) must be subtracted 
67.11 	from the amount of the total accrued liability calculated under clause (1). If the amount of 
67.12 	total present assets exceeds the amount of the total accrued liability, then the account is 
67.13 	considered to have a surplus over full funding. If the amount of the total present assets is 
67.14 	less than the amount of the total accrued liability, then the account is considered to have a 
67.15 	deficit from full funding. If the amount of total present assets is equal to the amount of the 
67.16 	total accrued liability, then the special fund is considered to be fully funded.
67.17 	(c) The financial requirements of each lump-sum account for the following calendar 
67.18 	year must be determined in the following manner:
67.19 	(1) The total accrued liability for all active and deferred members of the account as of 
67.20 	December 31 of the calendar year next following the current calendar year must be calculated 
67.21 	based on the good time service used in the calculation under paragraph (b), clause (1), 
67.22 	increased by one year.
67.23 	(2) The increase in the total accrued liability of the account for the following calendar 
67.24 	year over the total accrued liability of the account for the current year must be calculated.
67.25 	(3) The amount of administrative expenses of the account must be calculated by 
67.26 	multiplying the per-person dollar amount of the administrative expenses for the most recent 
67.27 	prior calendar year by the number of active and deferred firefighters reported to PERA on 
67.28 	the most recent good time service credit certification form for each account.
67.29 	(4) If the account is fully funded, the financial requirement of the account for the 
67.30 	following calendar year is the total of the amounts calculated under clauses (2) and (3).
67.31 	(5) If the account has a deficit from full funding, the financial requirement of the account 
67.32 	for the following calendar year is the total of the amounts calculated under clauses (2) and 
68.1 	(3) plus an amount equal to one-tenth of the amount of the deficit from full funding of the 
68.2 	account.
68.3 	(6) If the account has a surplus over full funding, the financial requirement of the account 
68.4 	for the following calendar year is the financial requirement of the account calculated as 
68.5 	though the account was fully funded under clause (4) and, if the account has also had a 
68.6 	surplus over full funding during the prior two years, additionally reduced by an amount 
68.7 	equal to one-tenth of the amount of the surplus over full funding of the account.
68.8 	(d) The required contribution of the entity or entities associated with the fire department 
68.9 	whose active firefighters are covered by the lump-sum retirement division is the annual 
68.10 	financial requirements of the lump-sum account of the retirement plan under paragraph (c) 
68.11 	reduced by the amount of any fire state aid payable under sections 69.011 to 69.051 chapter 
68.12 	477B or police and firefighter retirement supplemental state aid payable under section 
68.13 	423A.022 that is reasonably anticipated to be received by the retirement plan attributable 
68.14 	to the entity or entities during the following calendar year, and an amount of interest on the 
68.15 	assets projected to be received during the following calendar year calculated at the rate of 
68.16 	six percent per annum. The required contribution must be allocated between the entities if 
68.17 	more than one entity is involved. A reasonable amount of anticipated fire state aid is an 
68.18 	amount that does not exceed the fire state aid actually received in the prior year multiplied 
68.19 	by the factor 1.035.
68.20 	(e) The required contribution calculated in paragraph (d) must be paid to the retirement 
68.21 	plan on or before December 31 of the year for which it was calculated. If the contribution 
68.22 	is not received by the retirement plan by December 31, it is payable with interest at an 
68.23 	annual compound rate of six percent from the date due until the date payment is received 
68.24 	by the retirement plan. If the entity does not pay the full amount of the required contribution, 
68.25 	the executive director shall collect the unpaid amount under section 353.28, subdivision 6.

68.26 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

68.27 	Sec. 7. Minnesota Statutes 2018, section 353G.08, subdivision 1a, is amended to read:
68.28 		Subd. 1a.Annual funding requirements; monthly benefit retirement division. (a) 
68.29 	Annually, the executive director shall determine the funding requirements of each monthly 
68.30 	benefit account in the voluntary statewide volunteer firefighter retirement plan on or before 
68.31 	August 1.
68.32 	(b) The executive director must determine the funding requirements of a monthly benefit 
68.33 	account under this subdivision from:
69.1 	(1) the most recent actuarial valuation normal cost, administrative expense, including 
69.2 	the cost of a regular actuarial valuation, and amortization results for the account determined 
69.3 	by the approved actuary retained by the retirement association under sections 356.215 and 
69.4 	356.216; and
69.5 	(2) the standards for actuarial work, utilizing a six percent interest rate actuarial 
69.6 	assumption and other actuarial assumptions approved under section 356.215, subdivision 
69.7 	18:
69.8 	(i) with that portion of any unfunded actuarial accrued liability attributable to a benefit 
69.9 	increase to be amortized over a period of 20 years from the date of the benefit change;
69.10 	(ii) with that portion of any unfunded actuarial accrued liability attributable to an 
69.11 	assumption change or an actuarial method change to be amortized over a period of 20 years 
69.12 	from the date of the assumption or method change;
69.13 	(iii) with that portion of any unfunded actuarial accrued liability attributable to an 
69.14 	investment loss to be amortized over a period of ten years from the date of investment loss; 
69.15 	and
69.16 	(iv) with the balance of any net unfunded actuarial accrued liability to be amortized over 
69.17 	a period of five years from the date of the actuarial valuation.
69.18 	(c) The required contributions of the entity or entities associated with the fire department 
69.19 	whose active firefighters are covered by the monthly benefit retirement division are the 
69.20 	annual financial requirements of the monthly benefit account of the retirement plan under 
69.21 	paragraph (b) reduced by the amount of any fire state aid payable under sections 69.011 to 
69.22 	69.051 chapter 477B, or any police and firefighter retirement supplemental state aid payable 
69.23 	under section 423A.022, that is reasonably anticipated to be received by the retirement plan 
69.24 	attributable to the entity or entities during the following calendar year. The required 
69.25 	contribution must be allocated between the entities if more than one entity is involved. A 
69.26 	reasonable amount of anticipated fire state aid is an amount that does not exceed the fire 
69.27 	state aid actually received in the prior year multiplied by the factor 1.035.
69.28 	(d) The required contribution calculated in paragraph (c) must be paid to the retirement 
69.29 	plan on or before December 31 of the year for which it was calculated. If the contribution 
69.30 	is not received by the retirement plan by December 31, it is payable with interest at an 
69.31 	annual compound rate of six percent from the date due until the date payment is received 
69.32 	by the retirement plan. If the entity does not pay the full amount of the required contribution, 
69.33 	the executive director shall collect the unpaid amount under section 353.28, subdivision 6.

70.1 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

70.2 	Sec. 8. Minnesota Statutes 2018, section 353G.17, subdivision 2, is amended to read:
70.3 		Subd. 2.Approval by the relief association. (a) Before a transfer of records, assets, 
70.4 	and liabilities from the retirement plan to a relief association may occur, the board of trustees 
70.5 	of the relief association shall adopt resolutions as follows:
70.6 	(1) approving and accepting the transfer of records, assets, and liabilities from the 
70.7 	retirement plan; and
70.8 	(2) amending the bylaws of the relief association as necessary to add the firefighters 
70.9 	whose benefits are being transferred from the retirement plan and to provide that each benefit 
70.10 	being transferred retains vesting, distribution, and other rights to which the firefighter, for 
70.11 	whom the benefit is being transferred, is entitled under the terms of the retirement plan to 
70.12 	the date of the transfer.
70.13 	The board of trustees shall file a copy of the resolutions with the executive director.
70.14 	(b) The board of trustees of the relief association shall file with the state auditor the 
70.15 	following:
70.16 	(1) a copy of the resolutions required under paragraph (a);
70.17 	(2) a copy of the bylaws of the relief association and any bylaw amendments;
70.18 	(3) a copy of the relief association's investment policy;
70.19 	(4) a statement that a board of trustees has been duly elected and each trustee's name, 
70.20 	address, telephone number, and e-mail address, if any;
70.21 	(5) a copy of the most recent annual financial, investment, and plan administration report 
70.22 	filed under section 69.051 424A.014, unless the due date for the first report has not yet 
70.23 	occurred; and
70.24 	(6) a copy of the documentation indicating that a special fund has been established with 
70.25 	a financial institution to receive a transfer of assets from the retirement plan.
70.26 	(c) Upon receipt of the information and documents required under paragraph (b), the 
70.27 	state auditor shall issue to the relief association and the executive director written 
70.28 	confirmation of receipt of all required information and documents.

70.29 	EFFECTIVE DATE. This section is effective July 1, 2019.

71.1 	Sec. 9. Minnesota Statutes 2018, section 356.20, subdivision 4a, is amended to read:
71.2 		Subd. 4a.Financial report for police or firefighters relief association. For any police 
71.3 	or firefighter's firefighters relief association referred to in subdivision 2, clause (10) or (11), 
71.4 	a financial report that is duly filed and that meets the requirements of section 69.051
71.5 	424A.014 is deemed to have met the requirements of subdivision 4.

71.6 	EFFECTIVE DATE. This section is effective July 1, 2019.

71.7 	Sec. 10. Minnesota Statutes 2018, section 356.219, subdivision 8, is amended to read:
71.8 		Subd. 8.Timing of reports. (a) For the Bloomington Fire Department Relief Association 
71.9 	and the volunteer firefighter relief associations, the information required under this section 
71.10 	must be submitted by the due date for reports required under section 69.051, subdivision 1
71.11 	or 1a 424A.014, subdivision 1 or 2, as applicable. If a relief association satisfies the definition 
71.12 	of a fully invested plan under subdivision 1, paragraph (b), for the calendar year covered 
71.13 	by the report required under section 69.051, subdivision 1 or 1a 424A.014, subdivision 1 
71.14 	or 2, as applicable, the chief administrative officer of the covered pension plan shall certify 
71.15 	that compliance on a form prescribed by the state auditor. The state auditor shall transmit 
71.16 	annually to the State Board of Investment a list or lists of covered pension plans which 
71.17 	submitted certifications in order to facilitate reporting by the State Board of Investment 
71.18 	under paragraph (c).
71.19 	(b) For the St. Paul Teachers Retirement Fund Association and the University of 
71.20 	Minnesota faculty supplemental retirement plan, the information required under this section 
71.21 	must be submitted to the state auditor by June 1 of each year.
71.22 	(c) The State Board of Investment, on behalf of pension funds specified in subdivision 
71.23 	1, paragraph (c), shall report information required under this section by September 1 of each 
71.24 	year.

71.25 	EFFECTIVE DATE. This section is effective July 1, 2019.

71.26 	Sec. 11. Minnesota Statutes 2018, section 423A.02, subdivision 1b, is amended to read:
71.27 		Subd. 1b.Additional amortization state aid. (a) Annually, the commissioner shall 
71.28 	allocate the additional amortization state aid, if any, including any state aid in excess of the 
71.29 	limitation in subdivision 4, on the following basis:
71.30 	(1) 47.1 percent to the city of Minneapolis to defray the employer costs associated with 
71.31 	police and firefighter retirement coverage;
72.1 	(2) 25.8 percent as additional funding to support the minimum fire state aid for volunteer 
72.2 	firefighter relief associations under section 69.021, subdivision 7, paragraph (d) 477B.03, 
72.3 	subdivision 5;
72.4 	(3) 12.9 percent to the city of Duluth to defray employer costs associated with police 
72.5 	and firefighter retirement coverage;
72.6 	(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the investment 
72.7 	performance requirement of paragraph (c) is met; and
72.8 	(5) 1.3 percent to the city of Virginia to defray the employer contribution under section 
72.9 	353.665, subdivision 8, paragraph (d).
72.10 	If there is no additional employer contribution under section 353.665, subdivision 8, 
72.11 	paragraph (b), certified under subdivision 1, paragraph (d), clause (2), with respect to the 
72.12 	former Minneapolis Police Relief Association and the former Minneapolis Fire Department 
72.13 	Relief Association, the commissioner shall allocate that 47.1 percent of the aid as follows: 
72.14 	49 percent to the Teachers Retirement Association, 21 percent to the St. Paul Teachers 
72.15 	Retirement Fund Association, and 30 percent as additional funding to support minimum 
72.16 	fire state aid for volunteer firefighter relief associations under section 69.021, subdivision 
72.17 	7, paragraph (d) 477B.03, subdivision 5. If there is no employer contribution by the city of 
72.18 	Virginia under section 353.665, subdivision 8, paragraph (d), for the former Virginia Fire 
72.19 	Department Relief Association certified on or before June 30 by the executive director of 
72.20 	the Public Employees Retirement Association, the commissioner shall allocate that 1.3 
72.21 	percent of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent 
72.22 	to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional funding 
72.23 	to support minimum fire state aid for volunteer firefighter relief associations under section 
72.24 	69.021, subdivision 7, paragraph (d) 477B.03, subdivision 5.
72.25 	(b) The allocation must be made by the commissioner of revenue on October 1 annually.
72.26 	(c) With respect to the St. Paul Teachers Retirement Fund Association, annually, if the 
72.27 	teacher's association five-year average time-weighted rate of investment return does not 
72.28 	equal or exceed the performance of a composite portfolio assumed passively managed 
72.29 	(indexed) invested ten percent in cash equivalents, 60 percent in bonds and similar debt 
72.30 	securities, and 30 percent in domestic stock calculated using the formula under section 
72.31 	11A.04, clause (11), the aid allocation to the retirement fund under this section ceases until 
72.32 	the five-year annual rate of investment return equals or exceeds the performance of that 
72.33 	composite portfolio.
73.1 	(d) The amounts required under this subdivision are the amounts annually appropriated 
73.2 	to the commissioner of revenue under section 69.021, subdivision 11 477B.03, subdivision 
73.3 	5, paragraph (d), if any, and the aid amounts in excess of the limitation in subdivision 4.

73.4 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

73.5 	Sec. 12. Minnesota Statutes 2018, section 423A.02, subdivision 3, is amended to read:
73.6 		Subd. 3.Reallocation of amortization state aid. (a) Seventy percent of the difference 
73.7 	between $5,720,000 and the current year amortization aid distributed under subdivision 1 
73.8 	that is not distributed for any reason to a municipality must be distributed by the 
73.9 	commissioner of revenue according to this paragraph. The commissioner shall distribute 
73.10 	60 percent of the amounts derived under this paragraph to the Teachers Retirement 
73.11 	Association, and 40 percent to the St. Paul Teachers Retirement Fund Association to fund 
73.12 	the unfunded actuarial accrued liabilities of the respective funds. These payments must be 
73.13 	made on July 15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or 
73.14 	the Teachers Retirement Association satisfies subdivision 5, eligibility for its portion of this 
73.15 	aid ceases. Amounts remaining in the undistributed balance account at the end of the 
73.16 	biennium if aid eligibility ceases cancel to the general fund.
73.17 	(b) In order to receive amortization aid under paragraph (a), before June 30 annually 
73.18 	Independent School District No. 625, St. Paul, must make an additional contribution of 
73.19 	$800,000 each year to the St. Paul Teachers Retirement Fund Association.
73.20 	(c) Thirty percent of the difference between $5,720,000 and the current year amortization 
73.21 	aid under subdivision 1 that is not distributed for any reason to a municipality must be 
73.22 	distributed under section 69.021, subdivision 7, paragraph (d) 477B.03, subdivision 5, as 
73.23 	additional funding to support a minimum fire state aid amount for volunteer firefighter relief 
73.24 	associations.

73.25 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

73.26 	Sec. 13. Minnesota Statutes 2018, section 423A.022, subdivision 2, is amended to read:
73.27 		Subd. 2.Allocation. (a) Of the total amount appropriated as supplemental state aid:
73.28 	(1) 58.064 percent must be paid to the executive director of the Public Employees 
73.29 	Retirement Association for deposit in the public employees police and fire retirement fund 
73.30 	established by section 353.65, subdivision 1;
73.31 	(2) 35.484 percent must be paid to municipalities other than municipalities solely 
73.32 	employing firefighters with retirement coverage provided by the public employees police 
74.1 	and fire retirement plan which qualified to receive fire state aid in that calendar year, allocated 
74.2 	in proportion to the most recent amount of fire state aid paid under section 69.021, 
74.3 	subdivision 7 477B.04, for the municipality bears to the most recent total fire state aid for 
74.4 	all municipalities other than the municipalities solely employing firefighters with retirement 
74.5 	coverage provided by the public employees police and fire retirement plan paid under section 
74.6 	69.021, subdivision 7 477B.04, with the allocated amount for fire departments participating 
74.7 	in the voluntary statewide lump-sum volunteer firefighter retirement plan paid to the 
74.8 	executive director of the Public Employees Retirement Association for deposit in the fund 
74.9 	established by section 353G.02, subdivision 3, and credited to the respective account and 
74.10 	with the balance paid to the treasurer of each municipality for transmittal within 30 days of 
74.11 	receipt to the treasurer of the applicable volunteer firefighter relief association for deposit 
74.12 	in its special fund; and
74.13 	(3) 6.452 percent must be paid to the executive director of the Minnesota State Retirement 
74.14 	System for deposit in the state patrol retirement fund.
74.15 	(b) For purposes of this section, the term "municipalities" includes independent nonprofit 
74.16 	firefighting corporations that participate in the voluntary statewide lump-sum volunteer 
74.17 	firefighter retirement plan under chapter 353G or with subsidiary volunteer firefighter relief 
74.18 	associations operating under chapter 424A.

74.19 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

74.20 	Sec. 14. Minnesota Statutes 2018, section 423A.022, subdivision 4, is amended to read:
74.21 		Subd. 4.Payments; conditions prerequisite. (a) The payments under this section must 
74.22 	be made on October 1 each year, with interest at one percent for each month, or portion of 
74.23 	a month, that the amount remains unpaid after October 1. Any necessary adjustments must 
74.24 	be made to subsequent payments.
74.25 	(b) The provisions of sections 69.011 to 69.051 chapter 477B and section 424A.014 that 
74.26 	prevent municipalities and relief associations from being eligible for, or receiving fire state 
74.27 	aid under sections 69.011 to 69.051 chapter 477B and section 424A.014 until the applicable 
74.28 	financial reporting requirements have been complied with, apply to the amounts payable to 
74.29 	municipalities and relief associations under this section.

74.30 	EFFECTIVE DATE. This section is effective July 1, 2019, except the references to 
74.31 	Minnesota Statutes, chapter 477B, are effective for aids payable in 2020 and thereafter.

75.1 	Sec. 15. Minnesota Statutes 2018, section 424A.016, subdivision 2, is amended to read:
75.2 		Subd. 2.Defined contribution service pension eligibility. (a) A relief association, 
75.3 	when its articles of incorporation or bylaws so provide, may pay out of the assets of its 
75.4 	special fund a defined contribution service pension to each of its members who:
75.5 	(1) separates from active service with the fire department;
75.6 	(2) reaches age 50;
75.7 	(3) completes at least five years of active service as an active member of the fire 
75.8 	department to which the relief association is associated;
75.9 	(4) completes at least five years of active membership with the relief association before 
75.10 	separation from active service; and
75.11 	(5) complies with any additional conditions as to age, service, and membership that are 
75.12 	prescribed by the bylaws of the relief association.
75.13 	(b) In the case of a member who has completed at least five years of active service as 
75.14 	an active member of the fire department to which the relief association is associated on the 
75.15 	date that the relief association is established and incorporated, the requirement that the 
75.16 	member complete at least five years of active membership with the relief association before 
75.17 	separation from active service may be waived by the board of trustees of the relief association 
75.18 	if the member completes at least five years of inactive membership with the relief association 
75.19 	before the date of the payment of the service pension. During the period of inactive 
75.20 	membership, the member is not entitled to receive any disability benefit coverage, is not 
75.21 	entitled to receive additional individual account allocation of fire state aid or municipal 
75.22 	contribution towards a service pension, and is considered to have the status of a person 
75.23 	entitled to a deferred service pension.
75.24 	(c) The service pension earned by a volunteer under this chapter and the articles of 
75.25 	incorporation and bylaws of the relief association may be paid whether or not the municipality 
75.26 	or independent nonprofit firefighting corporation to which the relief association is associated 
75.27 	qualifies for the receipt of fire state aid under chapter 69 477B.

75.28 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

75.29 	Sec. 16. Minnesota Statutes 2018, section 424A.016, subdivision 4, is amended to read:
75.30 		Subd. 4.Individual accounts. (a) An individual account must be established for each 
75.31 	firefighter who is a member of the relief association.
75.32 	(b) To each individual active member account must be credited an equal share of:
76.1 	(1) any amounts of fire state aid and police and firefighter retirement supplemental state 
76.2 	aid received by the relief association;
76.3 	(2) any amounts of municipal contributions to the relief association raised from levies 
76.4 	on real estate or from other available municipal revenue sources exclusive of fire state aid; 
76.5 	and
76.6 	(3) any amounts equal to the share of the assets of the special fund to the credit of:
76.7 	(i) any former member who terminated active service with the fire department to which 
76.8 	the relief association is associated before meeting the minimum service requirement provided 
76.9 	for in subdivision 2, paragraph (b), and has not returned to active service with the fire 
76.10 	department for a period no shorter than five years; or
76.11 	(ii) any retired member who retired before obtaining a full nonforfeitable interest in the 
76.12 	amounts credited to the individual member account under subdivision 2, paragraph (b), and 
76.13 	any applicable provision of the bylaws of the relief association. In addition, any investment 
76.14 	return on the assets of the special fund must be credited in proportion to the share of the 
76.15 	assets of the special fund to the credit of each individual active member account. 
76.16 	Administrative expenses of the relief association payable from the special fund may be 
76.17 	deducted from individual accounts in a manner specified in the bylaws of the relief 
76.18 	association.
76.19 	(c) If the bylaws so permit and as the bylaws define, the relief association may credit 
76.20 	any investment return on the assets of the special fund to the accounts of inactive members.
76.21 	(d) Amounts to be credited to individual accounts must be allocated uniformly for all 
76.22 	years of active service and allocations must be made for all years of service, except for caps 
76.23 	on service credit if so provided in the bylaws of the relief association. Amounts forfeited 
76.24 	under paragraph (b), clause (3), before a resumption of active service and membership under 
76.25 	section 424A.01, subdivision 6, remain forfeited and may not be reinstated upon the 
76.26 	resumption of active service and membership. The allocation method may utilize monthly 
76.27 	proration for fractional years of service, as the bylaws or articles of incorporation of the 
76.28 	relief association so provide. The bylaws or articles of incorporation may define a "month," 
76.29 	but the definition must require a calendar month to have at least 16 days of active service. 
76.30 	If the bylaws or articles of incorporation do not define a "month," a "month" is a completed 
76.31 	calendar month of active service measured from the member's date of entry to the same date 
76.32 	in the subsequent month.
76.33 	(e) At the time of retirement under subdivision 2 and any applicable provision of the 
76.34 	bylaws of the relief association, a retiring member is entitled to that portion of the assets of 
77.1 	the special fund to the credit of the member in the individual member account which is 
77.2 	nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief 
77.3 	association based on the number of years of service to the credit of the retiring member.
77.4 	(f) Annually, the secretary of the relief association shall certify the individual account 
77.5 	allocations to the state auditor at the same time that the annual financial statement or financial 
77.6 	report and audit of the relief association, whichever applies, is due under section 69.051
77.7 	424A.014.

77.8 	EFFECTIVE DATE. This section is effective July 1, 2019.

77.9 	Sec. 17. Minnesota Statutes 2018, section 424A.02, subdivision 1, is amended to read:
77.10 		Subdivision 1.Authorization. (a) A defined benefit relief association, when its articles 
77.11 	of incorporation or bylaws so provide, may pay out of the assets of its special fund a defined 
77.12 	benefit service pension to each of its members who: (1) separates from active service with 
77.13 	the fire department; (2) reaches age 50; (3) completes at least five years of active service 
77.14 	as an active member of the fire department to which the relief association is associated; (4) 
77.15 	completes at least five years of active membership with the relief association before 
77.16 	separation from active service; and (5) complies with any additional conditions as to age, 
77.17 	service, and membership that are prescribed by the bylaws of the relief association. A service 
77.18 	pension computed under this section may be prorated monthly for fractional years of service 
77.19 	as the bylaws or articles of incorporation of the relief association so provide. The bylaws 
77.20 	or articles of incorporation may define a "month," but the definition must require a calendar 
77.21 	month to have at least 16 days of active service. If the bylaws or articles of incorporation 
77.22 	do not define a "month," a "month" is a completed calendar month of active service measured 
77.23 	from the member's date of entry to the same date in the subsequent month. The service 
77.24 	pension earned by a volunteer firefighter under this chapter and the articles of incorporation 
77.25 	and bylaws of the volunteer firefighters relief association may be paid whether or not the 
77.26 	municipality or independent nonprofit firefighting corporation to which the relief association 
77.27 	is associated qualifies for the receipt of fire state aid under chapter 69 477B.
77.28 	(b) In the case of a member who has completed at least five years of active service as 
77.29 	an active member of the fire department to which the relief association is associated on the 
77.30 	date that the relief association is established and incorporated, the requirement that the 
77.31 	member complete at least five years of active membership with the relief association before 
77.32 	separation from active service may be waived by the board of trustees of the relief association 
77.33 	if the member completes at least five years of inactive membership with the relief association 
77.34 	before the date of the payment of the service pension. During the period of inactive 
78.1 	membership, the member is not entitled to receive disability benefit coverage, is not entitled 
78.2 	to receive additional service credit towards computation of a service pension, and is 
78.3 	considered to have the status of a person entitled to a deferred service pension under 
78.4 	subdivision 7.
78.5 	(c) No municipality, independent nonprofit firefighting corporation, or joint powers 
78.6 	entity may delegate the power to take final action in setting a service pension or ancillary 
78.7 	benefit amount or level to the board of trustees of the relief association or to approve in 
78.8 	advance a service pension or ancillary benefit amount or level equal to the maximum amount 
78.9 	or level that this chapter would allow rather than a specific dollar amount or level.

78.10 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

78.11 	Sec. 18. Minnesota Statutes 2018, section 424A.02, subdivision 3a, is amended to read:
78.12 		Subd. 3a.Penalty for paying pension greater than applicable maximum. (a) If a 
78.13 	defined benefit relief association pays a service pension greater than the maximum service 
78.14 	pension associated with the applicable average amount of available financing per active 
78.15 	covered firefighter under the table in subdivision 3, paragraph (c) or (d), whichever applies, 
78.16 	the maximum service pension under subdivision 3, paragraph (f), or the applicable maximum 
78.17 	service pension amount specified in subdivision 3, paragraph (g), whichever is less, the 
78.18 	state auditor shall:
78.19 	(1) disqualify the municipality or the independent nonprofit firefighting corporation 
78.20 	associated with the relief association from receiving fire state aid by making the appropriate 
78.21 	notification to the municipality and the commissioner of revenue, with the disqualification 
78.22 	applicable for the next apportionment and payment of fire state aid; and
78.23 	(2) order the treasurer of the applicable relief association to recover the amount of the 
78.24 	overpaid service pension or pensions from any retired firefighter who received an 
78.25 	overpayment.
78.26 	(b) Fire state aid amounts from disqualified municipalities for the period of 
78.27 	disqualifications under paragraph (a), clause (1), must be credited to the amount of fire 
78.28 	insurance premium tax proceeds available for the next subsequent fire state aid 
78.29 	apportionment.
78.30 	(c) The amount of any overpaid service pension recovered under paragraph (a), clause 
78.31 	(2), must be credited to the amount of fire insurance premium tax proceeds available for 
78.32 	the next subsequent fire state aid apportionment.
79.1 	(d) The determination of the state auditor that a relief association has paid a service 
79.2 	pension greater than the applicable maximum must be made on the basis of the information 
79.3 	filed by the relief association and the municipality with the state auditor under sections 
79.4 	69.011, subdivision 2, and 69.051, subdivision 1 or 1a, whichever applies, this chapter and 
79.5 	any other relevant information that comes to the attention of the state auditor. The 
79.6 	determination of the state auditor is final. An aggrieved municipality, relief association, or 
79.7 	person may appeal the determination under section 480A.06.
79.8 	(e) The state auditor may certify, upon learning that a relief association overpaid a service 
79.9 	pension based on an error in the maximum service pension calculation, the municipality or 
79.10 	independent nonprofit firefighting corporation associated with the relief association for fire 
79.11 	state aid if (1) there is evidence that the error occurred in good faith, and (2) the relief 
79.12 	association has initiated recovery of any overpayment amount. Notwithstanding paragraph 
79.13 	(c), all overpayments recovered under this paragraph must be credited to the relief 
79.14 	association's special fund.

79.15 	EFFECTIVE DATE. This section is effective July 1, 2019.

79.16 	Sec. 19. Minnesota Statutes 2018, section 424A.02, subdivision 10, is amended to read:
79.17 		Subd. 10.Local approval of bylaw amendments; filing requirements. (a) Each defined 
79.18 	benefit relief association to which this section applies must file a revised copy of its governing 
79.19 	bylaws with the state auditor upon the adoption of any amendment to its governing bylaws 
79.20 	by the relief association or upon the approval of any amendment to its governing bylaws 
79.21 	granted by the governing body of each municipality served by the fire department to which 
79.22 	the relief association is directly associated. Failure of the relief association to file a copy of 
79.23 	the bylaws or any bylaw amendments with the state auditor disqualifies the municipality 
79.24 	from the distribution of any future fire state aid until this filing requirement has been 
79.25 	completed.
79.26 	(b) If the special fund of the relief association does not have a surplus over full funding 
79.27 	under section 424A.092, subdivision 3, paragraph (c), clause (5), or 424A.093, subdivision 
79.28 	4, and if the municipality is required to provide financial support to the special fund of the 
79.29 	relief association under section 424A.092 or 424A.093, no bylaw amendment which would 
79.30 	affect the amount of, the manner of payment of, or the conditions for qualification for service 
79.31 	pensions or ancillary benefits or disbursements other than administrative expenses authorized 
79.32 	under section 69.80 424A.05, subdivision 3b, payable from the special fund of the relief 
79.33 	association is effective until it has been ratified as required under section 424A.092, 
79.34 	subdivision 6, or 424A.093, subdivision 6. If the special fund of the relief association has 
80.1 	a surplus over full funding under section 424A.092, subdivision 3, or 424A.093, subdivision 
80.2 	4, and if the municipality is not required to provide financial support to the special fund 
80.3 	under this section, the relief association may adopt or amend without municipal ratification 
80.4 	its articles of incorporation or bylaws which increase or otherwise affect the service pensions 
80.5 	or ancillary benefits payable from the special fund if authorized under section 424A.092, 
80.6 	subdivision 6, or 424A.093, subdivision 6.
80.7 	(c) If the relief association pays only a lump-sum pension, the financial requirements 
80.8 	are to be determined by the board of trustees following the preparation of an estimate of 
80.9 	the expected increase in the accrued liability and annual accruing liability of the relief 
80.10 	association attributable to the change. If the relief association pays a monthly benefit service 
80.11 	pension, the financial requirements are to be determined by the board of trustees following 
80.12 	either an updated actuarial valuation including the proposed change or an estimate of the 
80.13 	expected actuarial impact of the proposed change prepared by the actuary of the relief 
80.14 	association. If a relief association adopts or amends its articles of incorporation or bylaws 
80.15 	without municipal ratification under this subdivision, and, subsequent to the amendment or 
80.16 	adoption, the financial requirements of the special fund under this section are such so as to 
80.17 	require financial support from the municipality, the provision which was implemented 
80.18 	without municipal ratification is no longer effective without municipal ratification, and any 
80.19 	service pensions or ancillary benefits payable after that date must be paid only in accordance 
80.20 	with the articles of incorporation or bylaws as amended or adopted with municipal 
80.21 	ratification.

80.22 	EFFECTIVE DATE. This section is effective July 1, 2019.

80.23 	Sec. 20. Minnesota Statutes 2018, section 424A.03, subdivision 2, is amended to read:
80.24 		Subd. 2.Penalties for violations. A municipality which has a fire department associated 
80.25 	with a relief association which violates the provisions of subdivision 1 is directly associated 
80.26 	or which contracts with an independent nonprofit firefighting corporation associated with 
80.27 	a relief association which violates the provisions of subdivision 1 is a subsidiary may not 
80.28 	be included in the apportionment of fire state aid to the applicable county auditor and police 
80.29 	and firefighter retirement supplemental state aid payable under section 69.021, subdivision 
80.30 	6, chapter 477B and section 423A.022 and may not be included in the apportionment of 
80.31 	fire state aid by the county auditor to the various municipalities under section 69.021, 
80.32 	subdivision 7 477B.03.

80.33 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

81.1 	Sec. 21. Minnesota Statutes 2018, section 424A.05, subdivision 2, is amended to read:
81.2 		Subd. 2.Special fund assets and revenues. The special fund must be credited with all 
81.3 	fire state aid and police and firefighter retirement supplemental state aid received under 
81.4 	sections 69.011 to 69.051 chapter 477B and section 423A.022, all taxes levied by or other 
81.5 	revenues received from the municipality under sections 424A.091 to 424A.096 or any 
81.6 	applicable special law requiring municipal support for the relief association, any funds or 
81.7 	property donated, given, granted or devised by any person which is specified for use for the 
81.8 	support of the special fund and any interest or investment return earned upon the assets of 
81.9 	the special fund. The treasurer of the relief association is the custodian of the assets of the 
81.10 	special fund and must be the recipient on behalf of the special fund of all revenues payable 
81.11 	to the special fund. The treasurer shall maintain adequate records documenting any 
81.12 	transaction involving the assets or the revenues of the special fund. These records and the 
81.13 	bylaws of the relief association are public and must be open for inspection by any member 
81.14 	of the relief association, any officer or employee of the state or of the municipality, or any 
81.15 	member of the public, at reasonable times and places.

81.16 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

81.17 	Sec. 22. Minnesota Statutes 2018, section 424A.05, subdivision 3, is amended to read:
81.18 		Subd. 3.Authorized disbursements from special fund. (a) Disbursements from the 
81.19 	special fund may not be made for any purpose other than one of the following:
81.20 	(1) for the payment of service pensions to retired members of the relief association if 
81.21 	authorized and paid under law and the bylaws governing the relief association;
81.22 	(2) for the purchase of an annuity for the applicable person under section 424A.015, 
81.23 	subdivision 3, for the transfer of service pension or benefit amounts to the applicable person's 
81.24 	individual retirement account under section 424A.015, subdivision 4, or to the applicable 
81.25 	person's account in the Minnesota deferred compensation plan under section 424A.015, 
81.26 	subdivision 5;
81.27 	(3) for the payment of temporary or permanent disability benefits to disabled members 
81.28 	of the relief association if authorized and paid under law and specified in amount in the 
81.29 	bylaws governing the relief association;
81.30 	(4) for the payment of survivor benefits or for the payment of a death benefit to the estate 
81.31 	of the deceased active or deferred firefighter, if authorized and paid under law and specified 
81.32 	in amount in the bylaws governing the relief association;
82.1 	(5) for the payment of the fees, dues and assessments to the Minnesota State Fire 
82.2 	Department Association and to the Minnesota State Fire Chiefs Association in order to 
82.3 	entitle relief association members to membership in and the benefits of these associations 
82.4 	or organizations;
82.5 	(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit 
82.6 	Association, or an insurance company licensed by the state of Minnesota offering casualty 
82.7 	insurance, in order to entitle relief association members to membership in and the benefits 
82.8 	of the association or organization; and
82.9 	(7) for the payment of administrative expenses of the relief association as authorized 
82.10 	under section 69.80 subdivision 3b.
82.11 	(b) Checks or authorizations for electronic fund transfers for disbursements authorized 
82.12 	by this section must be signed by the relief association treasurer and at least one other elected 
82.13 	trustee who has been designated by the board of trustees to sign the checks or authorizations. 
82.14 	A relief association may make disbursements authorized by this subdivision by electronic 
82.15 	fund transfers only if the specific method of payment and internal control policies and 
82.16 	procedures regarding the method are approved by the board of trustees.

82.17 	EFFECTIVE DATE. This section is effective July 1, 2019.

82.18 	Sec. 23. Minnesota Statutes 2018, section 424A.07, is amended to read:
82.19 	424A.07 NONPROFIT FIREFIGHTING CORPORATIONS; ESTABLISHMENT 
82.20 	OF RELIEF ASSOCIATIONS.
82.21 	Before paying any service pensions or retirement benefits under section 424A.02 or 
82.22 	before becoming entitled to receive any amounts of fire state aid upon transmittal from a 
82.23 	contracting municipality under section 69.031, subdivision 5 477B.04, subdivision 3, an 
82.24 	independent nonprofit firefighting corporation shall establish a volunteer firefighters relief 
82.25 	association governed by this chapter.

82.26 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

82.27 	Sec. 24. Minnesota Statutes 2018, section 424A.091, subdivision 3, is amended to read:
82.28 		Subd. 3.Remedy for noncompliance; determination. (a) A municipality in which 
82.29 	there exists a firefighters relief association as specified in subdivision 1 which does not 
82.30 	comply with the applicable provisions of sections 424A.091 to 424A.096 or the provisions 
82.31 	of any applicable special law relating to the funding or financing of the association does 
82.32 	not qualify initially to receive, and is not entitled subsequently to retain, fire state aid under 
83.1 	sections 69.011 to 69.051 chapter 477B until the reason for the disqualification specified 
83.2 	by the state auditor is remedied, whereupon the municipality or relief association, if otherwise 
83.3 	qualified, is entitled to again receive fire state aid for the year occurring immediately 
83.4 	subsequent to the year in which the disqualification is remedied.
83.5 	(b) The state auditor shall determine if a municipality to which a firefighters' relief 
83.6 	association is directly associated or a firefighters relief association fails to comply with the 
83.7 	provisions of sections 424A.091 to 424A.096 or the funding or financing provisions of any 
83.8 	applicable special law based upon the information contained in the annual financial report 
83.9 	of the firefighters relief association required under section 69.051 424A.014, the actuarial 
83.10 	valuation of the relief association, if applicable, the relief association officers' financial 
83.11 	requirements of the relief association and minimum municipal obligation determination 
83.12 	documentation under section 424A.092, subdivisions 3 and 4; 424A.093, subdivisions 4 
83.13 	and 5; or 424A.094, subdivision 2, if requested to be filed by the state auditor, the applicable 
83.14 	municipal or independent nonprofit firefighting corporation budget, if requested to be filed 
83.15 	by the state auditor, and any other relevant documents or reports obtained by the state 
83.16 	auditor.
83.17 	(c) The municipality or independent nonprofit firefighting corporation and the associated 
83.18 	relief association are not eligible to receive or to retain fire state aid if:
83.19 	(1) the relief association fails to prepare or to file the financial report or financial 
83.20 	statement under section 69.051 424A.014;
83.21 	(2) the relief association treasurer is not bonded in the manner and in the amount required 
83.22 	by section 69.051, subdivision 2 424A.014, subdivision 4;
83.23 	(3) the relief association officers fail to determine or improperly determine the accrued 
83.24 	liability and the annual accruing liability of the relief association under section 424A.092, 
83.25 	subdivisions 2, 2a, and 3, paragraph (c), clause (2), if applicable;
83.26 	(4) if applicable, the relief association officers fail to obtain and file a required actuarial 
83.27 	valuation or the officers file an actuarial valuation that does not contain the special fund 
83.28 	actuarial liability calculated under the entry age normal actuarial cost method, the special 
83.29 	fund current assets, the special fund unfunded actuarial accrued liability, the special fund 
83.30 	normal cost under the entry age normal actuarial cost method, the amortization requirement 
83.31 	for the special fund unfunded actuarial accrued liability by the applicable target date, a 
83.32 	summary of the applicable benefit plan, a summary of the membership of the relief 
83.33 	association, a summary of the actuarial assumptions used in preparing the valuation, and a 
84.1 	signed statement by the actuary attesting to its results and certifying to the qualifications of 
84.2 	the actuary as an approved actuary under section 356.215, subdivision 1, paragraph (c);
84.3 	(5) the municipality failed to provide a municipal contribution, or the independent 
84.4 	nonprofit firefighting corporation failed to provide a corporate contribution, in the amount 
84.5 	equal to the minimum municipal obligation if the relief association is governed under section 
84.6 	424A.092, or the amount necessary, when added to the fire state aid actually received in 
84.7 	the plan year in question, to at least equal in total the calculated annual financial requirements 
84.8 	of the special fund of the relief association if the relief association is governed under section 
84.9 	424A.093, and, if the municipal or corporate contribution is deficient, the municipality 
84.10 	failed to include the minimum municipal obligation certified under section 424A.092, 
84.11 	subdivision 3, or 424A.093, subdivision 5, in its budget and tax levy or the independent 
84.12 	nonprofit firefighting corporation failed to include the minimum corporate obligation certified 
84.13 	under section 424A.094, subdivision 2, in the corporate budget;
84.14 	(6) the defined benefit relief association did not receive municipal ratification for the 
84.15 	most recent plan amendment when municipal ratification was required under section 424A.02, 
84.16 	subdivision 10; 424A.092, subdivision 6; or 424A.093, subdivision 6;
84.17 	(7) the relief association invested special fund assets in an investment security that is 
84.18 	not authorized under section 424A.095;
84.19 	(8) the relief association had an administrative expense that is not authorized under 
84.20 	section 69.80 or424A.05, subdivision 3 or 3b, or the municipality had an expenditure that 
84.21 	is not authorized under section 424A.08;
84.22 	(9) the relief association officers fail to provide a complete and accurate public pension 
84.23 	plan investment portfolio and performance disclosure under section 356.219;
84.24 	(10) the relief association fails to obtain the acknowledgment from a broker of the 
84.25 	statement of investment restrictions under section 356A.06, subdivision 8b;
84.26 	(11) the relief association officers permitted to occur a prohibited transaction under 
84.27 	section 356A.06, subdivision 9, or 424A.04, subdivision 2a, or failed to undertake correction 
84.28 	of a prohibited transaction that did occur; or
84.29 	(12) the relief association pays a defined benefit service pension in an amount that is in 
84.30 	excess of the applicable service pension maximum under section 424A.02, subdivision 3.

84.31 	EFFECTIVE DATE. This section is effective July 1, 2019, except the reference to 
84.32 	Minnesota Statutes, chapter 477B, is effective for aids payable in 2020 and thereafter.

85.1 	Sec. 25. Minnesota Statutes 2018, section 424A.092, subdivision 3, is amended to read:
85.2 		Subd. 3.Financial requirements of relief association; minimum obligation of 
85.3 	municipality. (a) During the month of July, the officers of the relief association shall 
85.4 	determine the overall funding balance of the special fund for the current calendar year, the 
85.5 	financial requirements of the special fund for the following calendar year and the minimum 
85.6 	obligation of the municipality with respect to the special fund for the following calendar 
85.7 	year in accordance with the requirements of this subdivision.
85.8 	(b) The overall funding balance of the special fund for the current calendar year must 
85.9 	be determined in the following manner:
85.10 	(1) The total accrued liability of the special fund for all active and deferred members of 
85.11 	the relief association as of December 31 of the current year must be calculated under 
85.12 	subdivisions 2 and 2a, if applicable.
85.13 	(2) The total present assets of the special fund projected to December 31 of the current 
85.14 	year, including receipts by and disbursements from the special fund anticipated to occur on 
85.15 	or before December 31, must be calculated. To the extent possible, for those assets for which 
85.16 	a market value is readily ascertainable, the current market value as of the date of the 
85.17 	calculation for those assets must be utilized in making this calculation. For any asset for 
85.18 	which no market value is readily ascertainable, the cost value or the book value, whichever 
85.19 	is applicable, must be utilized in making this calculation.
85.20 	(3) The amount of the total present assets of the special fund calculated under clause (2) 
85.21 	must be subtracted from the amount of the total accrued liability of the special fund calculated 
85.22 	under clause (1). If the amount of total present assets exceeds the amount of the total accrued 
85.23 	liability, then the special fund is considered to have a surplus over full funding. If the amount 
85.24 	of the total present assets is less than the amount of the total accrued liability, then the 
85.25 	special fund is considered to have a deficit from full funding. If the amount of total present 
85.26 	assets is equal to the amount of the total accrued liability, then the special fund is considered 
85.27 	to be fully funded.
85.28 	(c) The financial requirements of the special fund for the following calendar year must 
85.29 	be determined in the following manner:
85.30 	(1) The total accrued liability of the special fund for all active and deferred members of 
85.31 	the relief association as of December 31 of the calendar year next following the current 
85.32 	calendar year must be calculated under subdivisions 2 and 2a, if applicable.
86.1 	(2) The increase in the total accrued liability of the special fund for the following calendar 
86.2 	year over the total accrued liability of the special fund for the current year must be calculated.
86.3 	(3) The amount of anticipated future administrative expenses of the special fund must 
86.4 	be calculated by multiplying the dollar amount of the administrative expenses of the special 
86.5 	fund for the most recent prior calendar year by the factor of 1.035.
86.6 	(4) If the special fund is fully funded, the financial requirements of the special fund for 
86.7 	the following calendar year are the total of the amounts calculated under clauses (2) and 
86.8 	(3).
86.9 	(5) If the special fund has a deficit from full funding, the financial requirements of the 
86.10 	special fund for the following calendar year are the financial requirements of the special 
86.11 	fund calculated as though the special fund were fully funded under clause (4) plus an amount 
86.12 	equal to one-tenth of the original amount of the deficit from full funding of the special fund 
86.13 	as determined under clause (2) resulting either from an increase in the amount of the service 
86.14 	pension occurring in the last ten years or from a net annual investment loss occurring during 
86.15 	the last ten years until each increase in the deficit from full funding is fully retired. The 
86.16 	annual amortization contribution under this clause may not exceed the amount of the deficit 
86.17 	from full funding.
86.18 	(6) If the special fund has a surplus over full funding, the financial requirements of the 
86.19 	special fund for the following calendar year are the financial requirements of the special 
86.20 	fund calculated as though the special fund were fully funded under clause (4) reduced by 
86.21 	an amount equal to one-tenth of the amount of the surplus over full funding of the special 
86.22 	fund.
86.23 	(d) The minimum obligation of the municipality with respect to the special fund is the 
86.24 	financial requirements of the special fund reduced by the amount of any fire state aid and 
86.25 	police and firefighter retirement supplemental state aid payable under sections 69.011 to 
86.26 	69.051chapter 477B and section 423A.022 reasonably anticipated to be received by the 
86.27 	municipality for transmittal to the special fund during the following calendar year, an amount 
86.28 	of interest on the assets of the special fund projected to the beginning of the following 
86.29 	calendar year calculated at the rate of five percent per annum, and the amount of any 
86.30 	contributions to the special fund required by the relief association bylaws from the active 
86.31 	members of the relief association reasonably anticipated to be received during the following 
86.32 	calendar year. A reasonable amount of anticipated fire state aid is an amount that does not 
86.33 	exceed the fire state aid actually received in the prior year multiplied by the factor 1.035.

86.34 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

87.1 	Sec. 26. Minnesota Statutes 2018, section 424A.092, subdivision 4, is amended to read:
87.2 		Subd. 4.Certification of financial requirements and minimum municipal obligation; 
87.3 	levy. (a) The officers of the relief association shall certify the financial requirements of the 
87.4 	special fund of the relief association and the minimum obligation of the municipality with 
87.5 	respect to the special fund of the relief association as determined under subdivision 3 on or 
87.6 	before August 1 of each year. The certification must be made to the entity that is responsible 
87.7 	for satisfying the minimum obligation with respect to the special fund of the relief association. 
87.8 	If the responsible entity is a joint powers entity, the certification must be made in the manner 
87.9 	specified in the joint powers agreement, or if the joint powers agreement is silent on this 
87.10 	point, the certification must be made to the chair of the joint powers board.
87.11 	(b) The financial requirements of the relief association and the minimum municipal 
87.12 	obligation must be included in the financial report or financial statement under section 
87.13 	69.051 424A.014. The schedule forms related to the determination of the financial 
87.14 	requirements must be filed with the state auditor by March 31, annually, if the relief 
87.15 	association is required to file a financial statement under section 69.051, subdivision 1a
87.16 	424A.014, subdivision 2, or by June 30, annually, if the relief association is required to file 
87.17 	a financial report and audit under section 69.051, subdivision 1 424A.014, subdivision 1.
87.18 	(c) The municipality shall provide for at least the minimum obligation of the municipality 
87.19 	with respect to the special fund of the relief association by tax levy or from any other source 
87.20 	of public revenue.
87.21 	(d) The municipality may levy taxes for the payment of the minimum municipal obligation 
87.22 	without any limitation as to rate or amount and irrespective of any limitations imposed by 
87.23 	other provisions of law upon the rate or amount of taxation until the balance of the special 
87.24 	fund or any fund of the relief association has attained a specified level. In addition, any 
87.25 	taxes levied under this section must not cause the amount or rate of any other taxes levied 
87.26 	in that year or to be levied in a subsequent year by the municipality which are subject to a 
87.27 	limitation as to rate or amount to be reduced.
87.28 	(e) If the municipality does not include the full amount of the minimum municipal 
87.29 	obligations in its levy for any year, the officers of the relief association shall certify that 
87.30 	amount to the county auditor, who shall spread a levy in the amount of the certified minimum 
87.31 	municipal obligation on the taxable property of the municipality.
87.32 	(f) If the state auditor determines that a municipal contribution actually made in a plan 
87.33 	year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause (5), the 
87.34 	state auditor may request a copy of the certifications under this subdivision from the relief 
88.1 	association or from the city. The relief association or the city, whichever applies, must 
88.2 	provide the certifications within 14 days of the date of the request from the state auditor.

88.3 	EFFECTIVE DATE. This section is effective July 1, 2019.

88.4 	Sec. 27. Minnesota Statutes 2018, section 424A.093, subdivision 5, is amended to read:
88.5 		Subd. 5.Minimum municipal obligation. (a) The officers of the relief association shall 
88.6 	determine the minimum obligation of the municipality with respect to the special fund of 
88.7 	the relief association for the following calendar year on or before August 1 of each year in 
88.8 	accordance with the requirements of this subdivision.
88.9 	(b) The minimum obligation of the municipality with respect to the special fund is an 
88.10 	amount equal to the financial requirements of the special fund of the relief association 
88.11 	determined under subdivision 4, reduced by the estimated amount of any fire state aid and 
88.12 	police and firefighter retirement supplemental state aid payable under sections 69.011 to 
88.13 	69.051 chapter 477B and section 423A.022 reasonably anticipated to be received by the 
88.14 	municipality for transmittal to the special fund of the relief association during the following 
88.15 	year and the amount of any anticipated contributions to the special fund required by the 
88.16 	relief association bylaws from the active members of the relief association reasonably 
88.17 	anticipated to be received during the following calendar year. A reasonable amount of 
88.18 	anticipated fire state aid is an amount that does not exceed the fire state aid actually received 
88.19 	in the prior year multiplied by the factor 1.035.
88.20 	(c) The officers of the relief association shall certify the financial requirements of the 
88.21 	special fund of the relief association and the minimum obligation of the municipality with 
88.22 	respect to the special fund of the relief association as determined under subdivision 4 and 
88.23 	this subdivision by August 1 of each year. The certification must be made to the entity that 
88.24 	is responsible for satisfying the minimum obligation with respect to the special fund of the 
88.25 	relief association. If the responsible entity is a joint powers entity, the certification must be 
88.26 	made in the manner specified in the joint powers agreement, or if the joint powers agreement 
88.27 	is silent on this point, the certification must be made to the chair of the joint powers board.
88.28 	(d) The financial requirements of the relief association and the minimum municipal 
88.29 	obligation must be included in the financial report or financial statement under section 
88.30 	69.051 424A.014.
88.31 	(e) The municipality shall provide for at least the minimum obligation of the municipality 
88.32 	with respect to the special fund of the relief association by tax levy or from any other source 
88.33 	of public revenue. The municipality may levy taxes for the payment of the minimum 
89.1 	municipal obligation without any limitation as to rate or amount and irrespective of any 
89.2 	limitations imposed by other provisions of law or charter upon the rate or amount of taxation 
89.3 	until the balance of the special fund or any fund of the relief association has attained a 
89.4 	specified level. In addition, any taxes levied under this section must not cause the amount 
89.5 	or rate of any other taxes levied in that year or to be levied in a subsequent year by the 
89.6 	municipality which are subject to a limitation as to rate or amount to be reduced.
89.7 	(f) If the municipality does not include the full amount of the minimum municipal 
89.8 	obligation in its levy for any year, the officers of the relief association shall certify that 
89.9 	amount to the county auditor, who shall spread a levy in the amount of the minimum 
89.10 	municipal obligation on the taxable property of the municipality.
89.11 	(g) If the state auditor determines that a municipal contribution actually made in a plan 
89.12 	year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause (5), the 
89.13 	state auditor may request from the relief association or from the city a copy of the 
89.14 	certifications under this subdivision. The relief association or the city, whichever applies, 
89.15 	must provide the certifications within 14 days of the date of the request from the state auditor.

89.16 	EFFECTIVE DATE. This section is effective July 1, 2019, except the reference to 
89.17 	Minnesota Statutes, chapter 477B, is effective for aids payable in 2020 and thereafter.

89.18 	Sec. 28. Minnesota Statutes 2018, section 424B.09, is amended to read:
89.19 	424B.09 ADMINISTRATIVE EXPENSES.
89.20 	The payment of authorized administrative expenses of the subsequent volunteer 
89.21 	firefighters relief association must be from the special fund of the subsequent volunteer 
89.22 	firefighters relief association in accordance with section 69.80 424A.05, subdivision 3b, 
89.23 	and as provided for in the bylaws of the subsequent volunteer firefighters relief association 
89.24 	and approved by the board of trustees of the subsequent volunteer firefighters relief 
89.25 	association. The payment of any other expenses of the subsequent volunteer firefighters 
89.26 	relief association must be from the general fund of the subsequent volunteer firefighters 
89.27 	relief association in accordance with section 69.80 424A.05, subdivision 3b, and as provided 
89.28 	for in the bylaws of the subsequent volunteer firefighters relief association and approved 
89.29 	by the board of trustees of the subsequent volunteer firefighters relief association.

89.30 	EFFECTIVE DATE. This section is effective July 1, 2019.

89.31 	Sec. 29.  REPEALER.
 89.32 	Minnesota Statutes 2018, section 69.022, is repealed.

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

90.2 	ARTICLE 11
90.3 	DEPARTMENT OF REVENUE; MISCELLANEOUS; POLICY CHANGES

90.4 	Section 1. Minnesota Statutes 2018, section 270B.08, subdivision 2, is amended to read:
90.5 		Subd. 2.Revocation or cancellation. When a taxpayer's sales tax permit has been 
90.6 	revoked or canceled under section 270C.722 or 297A.84, the commissioner may disclose
90.7 	to any person data identifying the holder of the revoked or canceled permit, stating the basis 
90.8 	for the revocation or cancellation, the date of the revocation or cancellation, and stating 
90.9 	whether the if a revoked or canceled permit has been reinstated, the date upon which the 
90.10 	permit was reinstated.

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

90.12 	Sec. 2. Minnesota Statutes 2018, section 297A.84, is amended to read:
90.13 	297A.84 PERMITS ISSUED AND NOT ISSUED; CANCELLATION.
90.14 		Subdivision 1.Definitions. (a) The following definitions apply for the purposes of this 
90.15 	section.
90.16 	(b) "Applicant" means an individual, corporation, or partnership. Applicant also includes 
90.17 	any officer of a corporation or member of a partnership.
90.18 	(c) "Delinquent sales tax" means tax not paid by the date the tax was due and payable 
90.19 	under section 289A.20, subdivision 4, or an assessment not paid if the applicant has been 
90.20 	issued an order assessing sales and use tax under section 270C.33, subdivision 4.
90.21 		Subd. 2.Permits issued. Except as provided in subdivision 3, the commissioner shall
90.22 	must issue a permit to each applicant who has complied with section 297A.83, and with 
90.23 	section 297A.92 if security is required. A person is considered to have a permit if the person 
90.24 	has a Minnesota tax identification number issued by the commissioner that is currently 
90.25 	active for taxes imposed by this chapter. A permit is valid until canceled or revoked. It is 
90.26 	not assignable and is valid only for the person in whose name it is granted and for the 
90.27 	transaction of business at the places designated on the permit.
90.28 		Subd. 3.Permits not issued. (a) Except as provided in paragraph (b), the commissioner 
90.29 	must not issue a permit to an applicant if the applicant is liable for delinquent sales tax.
90.30 	(b) The commissioner must issue a permit to an applicant if an appeal period of an order 
90.31 	assessing sales tax under section 270C.33, subdivision 5, has not ended. The commissioner 
91.1 	may cancel a permit issued under this paragraph in the manner provided in subdivision 4 
91.2 	if the applicant owes delinquent sales tax after the appeal period has ended.
91.3 		Subd. 4.Nonconforming permits; cancellation; reissue. (a) If the commissioner issues 
91.4 	a permit that does not conform with the requirements of this section or applicable rules, the 
91.5 	commissioner may cancel the permit upon notice to the permit holder. The notice must be 
91.6 	served by first class and certified mail at the permit holder's last known address. The 
91.7 	cancellation is effective immediately.
91.8 	(b) If a permit holder shows that a canceled permit was issued in conformance with the 
91.9 	requirements of this section and applicable rules, the commissioner must reissue the permit.

91.10 	EFFECTIVE DATE. This section is effective for permit applications filed after 
91.11 	December 31, 2019.

91.12 	Sec. 3. Minnesota Statutes 2018, section 297A.85, is amended to read:
91.13 	297A.85 CANCELLATION OF PERMITS.
91.14 	The commissioner may cancel a permit if one of the following conditions occurs:
91.15 	(1) the permit holder has not filed a sales or use tax return for at least one year;
91.16 	(2) the permit holder has not reported any sales or use tax liability on the permit holder's 
91.17 	returns for at least two years;
91.18 	(3) the permit holder requests cancellation of the permit; or
91.19 	(4) the permit is subject to cancellation pursuant to under section 270C.722, subdivision 
91.20 	2, paragraph (a).; or
91.21 	(5) the permit is subject to cancellation under section 297A.84.

91.22 	EFFECTIVE DATE. This section is effective for permit applications filed after 
91.23 	December 31, 2019.

91.24 	Sec. 4.  REPEALER.
 91.25 	Minnesota Statutes 2018, section 270C.131, is repealed.

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

92.1 	ARTICLE 12
92.2 	DEPARTMENT OF REVENUE; MISCELLANEOUS; TECHNICAL CHANGES

92.3 	Section 1. Minnesota Statutes 2018, section 272.02, subdivision 27, is amended to read:
92.4 		Subd. 27.Superior National Forest; recreational property for use by disabled
92.5 	veterans with a disability. Real and personal property is exempt if it is located in the 
92.6 	Superior National Forest, and owned or leased and operated by a nonprofit organization 
92.7 	that is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue 
92.8 	Code and primarily used to provide recreational opportunities for disabled veterans with a 
92.9 	disability and their families.

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

92.11 	Sec. 2. Minnesota Statutes 2018, section 272.02, subdivision 81, is amended to read:
92.12 		Subd. 81.Certain recreational property for disabled veterans with a disability. Real 
92.13 	and personal property is exempt if it is located in a county in the metropolitan area with a 
92.14 	population of less than 500,000 according to the 2000 federal census, and owned or leased 
92.15 	and operated by a nonprofit organization, and primarily used to provide recreational 
92.16 	opportunities for disabled veterans with a disability and their families.

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

92.18 	Sec. 3. Minnesota Statutes 2018, section 273.032, is amended to read:
92.19 	273.032 MARKET VALUE DEFINITION.
92.20 	(a) Unless otherwise provided, for the purpose of determining any property tax levy 
92.21 	limitation based on market value or any limit on net debt, the issuance of bonds, certificates 
92.22 	of indebtedness, or capital notes based on market value, any qualification to receive state 
92.23 	aid based on market value, or any state aid amount based on market value, the terms "market 
92.24 	value," "estimated market value," and "market valuation," whether equalized or unequalized, 
92.25 	mean the estimated market value of taxable property within the local unit of government 
92.26 	before any of the following or similar adjustments for:
92.27 	(1) the market value exclusions under:
92.28 	(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
92.29 	(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
92.30 	(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business properties);
93.1 	(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
93.2 	(v) section 273.13, subdivision 34 (homestead of a disabled veteran with a disability or 
93.3 	family caregiver); or
93.4 	(vi) section 273.13, subdivision 35 (homestead market value exclusion); or
93.5 	(2) the deferment of value under:
93.6 	(i) the Minnesota Agricultural Property Tax Law, section 273.111;
93.7 	(ii) the Aggregate Resource Preservation Law, section 273.1115;
93.8 	(iii) the Minnesota Open Space Property Tax Law, section 273.112;
93.9 	(iv) the rural preserves property tax program, section 273.114; or
93.10 	(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
93.11 	(3) the adjustments to tax capacity for:
93.12 	(i) tax increment financing under sections 469.174 to 469.1794;
93.13 	(ii) fiscal disparities under chapter 276A or 473F; or
93.14 	(iii) powerline credit under section 273.425.
93.15 	(b) Estimated market value under paragraph (a) also includes the market value of 
93.16 	tax-exempt property if the applicable law specifically provides that the limitation, 
93.17 	qualification, or aid calculation includes tax-exempt property.
93.18 	(c) Unless otherwise provided, "market value," "estimated market value," and "market 
93.19 	valuation" for purposes of property tax levy limitations and calculation of state aid, refer 
93.20 	to the estimated market value for the previous assessment year and for purposes of limits 
93.21 	on net debt, the issuance of bonds, certificates of indebtedness, or capital notes refer to the 
93.22 	estimated market value as last finally equalized.
93.23 	(d) For purposes of a provision of a home rule charter or of any special law that is not 
93.24 	codified in the statutes and that imposes a levy limitation based on market value or any limit 
93.25 	on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market 
93.26 	value, the terms "market value," "taxable market value," and "market valuation," whether 
93.27 	equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

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

94.1 	Sec. 4. Minnesota Statutes 2018, section 273.13, subdivision 22, is amended to read:
94.2 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
94.3 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
94.4 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
94.5 	property is deemed to be used for homestead purposes. The market value of class 1a property 
94.6 	must be determined based upon the value of the house, garage, and land.
94.7 	The first $500,000 of market value of class 1a property has a net classification rate of 
94.8 	one percent of its market value; and the market value of class 1a property that exceeds 
94.9 	$500,000 has a classification rate of 1.25 percent of its market value.
94.10 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
94.11 	used for the purposes of a homestead by:
94.12 	(1) any person who is blind as defined in section 256D.35, or the blind person who is 
94.13 	blind and the blind person's spouse of the person who is blind;
94.14 	(2) any person who is permanently and totally disabled or by the disabled person with 
94.15 	a disability and the disabled person's spouse of the person with a disability; or
94.16 	(3) the surviving spouse of a veteran who was permanently and totally disabled veteran
94.17 	homesteading a property classified under this paragraph for taxes payable in 2008.
94.18 	Property is classified and assessed under clause (2) only if the government agency or 
94.19 	income-providing source certifies, upon the request of the homestead occupant, that the 
94.20 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
94.21 	property is not eligible for the valuation exclusion under subdivision 34.
94.22 	Property is classified and assessed under paragraph (b) only if the commissioner of 
94.23 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
94.24 	of this paragraph.
94.25 	Permanently and totally disabled for the purpose of this subdivision means a condition 
94.26 	which is permanent in nature and totally incapacitates the person from working at an 
94.27 	occupation which brings the person an income. The first $50,000 market value of class 1b 
94.28 	property has a net classification rate of .45 percent of its market value. The remaining market 
94.29 	value of class 1b property is classified as class 1a or class 2a property, whichever is 
94.30 	appropriate.
94.31 	(c) Class 1c property is commercial use real and personal property that abuts public 
94.32 	water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by 
94.33 	the Department of Natural Resources, and is devoted to temporary and seasonal residential 
95.1 	occupancy for recreational purposes but not devoted to commercial purposes for more than 
95.2 	250 days in the year preceding the year of assessment, and that includes a portion used as 
95.3 	a homestead by the owner, which includes a dwelling occupied as a homestead by a 
95.4 	shareholder of a corporation that owns the resort, a partner in a partnership that owns the 
95.5 	resort, or a member of a limited liability company that owns the resort even if the title to 
95.6 	the homestead is held by the corporation, partnership, or limited liability company. For 
95.7 	purposes of this paragraph, property is devoted to a commercial purpose on a specific day 
95.8 	if any portion of the property, excluding the portion used exclusively as a homestead, is 
95.9 	used for residential occupancy and a fee is charged for residential occupancy. Class 1c 
95.10 	property must contain three or more rental units. A "rental unit" is defined as a cabin, 
95.11 	condominium, townhouse, sleeping room, or individual camping site equipped with water 
95.12 	and electrical hookups for recreational vehicles. Class 1c property must provide recreational 
95.13 	activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 
95.14 	or cross-country ski equipment; provide marina services, launch services, or guide services; 
95.15 	or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 
95.16 	to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 
95.17 	for class 1c even though it may remain available for rent. A camping pad offered for rent 
95.18 	by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 
95.19 	the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 
95.20 	the same owner owns two separate parcels that are located in the same township, and one 
95.21 	of those properties is classified as a class 1c property and the other would be eligible to be 
95.22 	classified as a class 1c property if it was used as the homestead of the owner, both properties 
95.23 	will be assessed as a single class 1c property; for purposes of this sentence, properties are 
95.24 	deemed to be owned by the same owner if each of them is owned by a limited liability 
95.25 	company, and both limited liability companies have the same membership. The portion of 
95.26 	the property used as a homestead is class 1a property under paragraph (a). The remainder 
95.27 	of the property is classified as follows: the first $600,000 of market value is tier I, the next 
95.28 	$1,700,000 of market value is tier II, and any remaining market value is tier III. The 
95.29 	classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 
95.30 	percent. Owners of real and personal property devoted to temporary and seasonal residential 
95.31 	occupancy for recreation purposes in which all or a portion of the property was devoted to 
95.32 	commercial purposes for not more than 250 days in the year preceding the year of assessment 
95.33 	desiring classification as class 1c, must submit a declaration to the assessor designating the 
95.34 	cabins or units occupied for 250 days or less in the year preceding the year of assessment 
95.35 	by January 15 of the assessment year. Those cabins or units and a proportionate share of 
95.36 	the land on which they are located must be designated as class 1c as otherwise provided. 
96.1 	The remainder of the cabins or units and a proportionate share of the land on which they 
96.2 	are located must be designated as class 3a commercial. The owner of property desiring 
96.3 	designation as class 1c property must provide guest registers or other records demonstrating 
96.4 	that the units for which class 1c designation is sought were not occupied for more than 250 
96.5 	days in the year preceding the assessment if so requested. The portion of a property operated 
96.6 	as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) 
96.7 	other nonresidential facility operated on a commercial basis not directly related to temporary 
96.8 	and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
96.9 	(d) Class 1d property includes structures that meet all of the following criteria:
96.10 	(1) the structure is located on property that is classified as agricultural property under 
96.11 	section 273.13, subdivision 23;
96.12 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
96.13 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
96.14 	the property, provided that use of the structure for storage of farm equipment and produce 
96.15 	does not disqualify the property from classification under this paragraph;
96.16 	(3) the structure meets all applicable health and safety requirements for the appropriate 
96.17 	season; and
96.18 	(4) the structure is not salable as residential property because it does not comply with 
96.19 	local ordinances relating to location in relation to streets or roads.
96.20 	The market value of class 1d property has the same classification rates as class 1a property 
96.21 	under paragraph (a).

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

96.23 	Sec. 5. Minnesota Statutes 2018, section 273.13, subdivision 34, is amended to read:
96.24 		Subd. 34.Homestead of disabled veteran with a disability or family caregiver. (a) 
96.25 	All or a portion of the market value of property owned by a veteran and serving as the 
96.26 	veteran's homestead under this section is excluded in determining the property's taxable 
96.27 	market value if the veteran has a service-connected disability of 70 percent or more as 
96.28 	certified by the United States Department of Veterans Affairs. To qualify for exclusion 
96.29 	under this subdivision, the veteran must have been honorably discharged from the United 
96.30 	States armed forces, as indicated by United States Government Form DD214 or other official 
96.31 	military discharge papers.
97.1 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 
97.2 	except as provided in clause (2); and
97.3 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
97.4 	excluded.
97.5 	(c) If a disabled veteran with a disability qualifying for a valuation exclusion under 
97.6 	paragraph (b), clause (2), predeceases the veteran's spouse, and if upon the death of the 
97.7 	veteran the spouse holds the legal or beneficial title to the homestead and permanently 
97.8 	resides there, the exclusion shall carry over to the benefit of the veteran's spouse for the 
97.9 	current taxes payable year and for eight additional taxes payable years or until such time 
97.10 	as the spouse remarries, or sells, transfers, or otherwise disposes of the property, whichever 
97.11 	comes first. Qualification under this paragraph requires an application under paragraph (h), 
97.12 	and a spouse must notify the assessor if there is a change in the spouse's marital status, 
97.13 	ownership of the property, or use of the property as a permanent residence.
97.14 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
97.15 	who dies due to a service-connected cause while serving honorably in active service, as 
97.16 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
97.17 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
97.18 	benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such 
97.19 	time as the spouse remarries or sells, transfers, or otherwise disposes of the property, 
97.20 	whichever comes first.
97.21 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
97.22 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
97.23 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
97.24 	for under paragraph (b).
97.25 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
97.26 	of the house and garage and immediately surrounding one acre of land qualifies for the 
97.27 	valuation exclusion under this subdivision.
97.28 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
97.29 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
97.30 	paragraph (b).
97.31 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
97.32 	apply to the assessor by July 1 of the first assessment year for which the exclusion is sought. 
97.33 	For an application received after July 1, the exclusion shall become effective for the following 
97.34 	assessment year. Except as provided in paragraph (c), the owner of a property that has been 
98.1 	accepted for a valuation exclusion must notify the assessor if there is a change in ownership 
98.2 	of the property or in the use of the property as a homestead.
98.3 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
98.4 	paragraph (d) must be made any time within two years of the death of the service member.
98.5 	(j) For purposes of this subdivision:
98.6 	(1) "active service" has the meaning given in section 190.05;
98.7 	(2) "own" means that the person's name is present as an owner on the property deed;
98.8 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
98.9 	United States Department of Veterans Affairs for assistance as the primary provider of 
98.10 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
98.11 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
98.12 	(4) "veteran" has the meaning given the term in section 197.447.
98.13 	(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion 
98.14 	under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit 
98.15 	under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries 
98.16 	or sells, transfers, or otherwise disposes of the property if:
98.17 	(1) the spouse files a first-time application within two years of the death of the service 
98.18 	member or by June 1, 2019, whichever is later;
98.19 	(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 
98.20 	homestead and permanently resides there;
98.21 	(3) the veteran met the honorable discharge requirements of paragraph (a); and
98.22 	(4) the United States Department of Veterans Affairs certifies that:
98.23 	(i) the veteran met the total (100 percent) and permanent disability requirement under 
98.24 	paragraph (b), clause (2); or
98.25 	(ii) the spouse has been awarded dependency and indemnity compensation.
98.26 	(l) The purpose of this provision of law providing a level of homestead property tax 
98.27 	relief for gravely disabled veterans with a disability, their primary family caregivers, and 
98.28 	their surviving spouses is to help ease the burdens of war for those among our state's citizens 
98.29 	who bear those burdens most heavily.
98.30 	(m) By July 1, the county veterans service officer must certify the disability rating and 
98.31 	permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.

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

99.2 	Sec. 6. Minnesota Statutes 2018, section 289A.08, subdivision 6, is amended to read:
99.3 		Subd. 6.Returns of married persons. A husband and wife Individuals who are married 
99.4 	to each other must file a joint Minnesota income tax return if they filed a joint federal income 
99.5 	tax return. If the husband and wife spouses have elected to file separate federal income tax 
99.6 	returns, they must file separate Minnesota income tax returns. This election to file a joint 
99.7 	or separate return must be changed if they change their election for federal purposes. In the 
99.8 	event taxpayers desire to change their election, the change must be done in the manner and 
99.9 	on the form prescribed by the commissioner.
99.10 	The determination of whether an individual is married shall be made under the provisions 
99.11 	of section 7703 of the Internal Revenue Code.

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

99.13 	Sec. 7. Minnesota Statutes 2018, section 289A.25, subdivision 1, is amended to read:
99.14 		Subdivision 1.Requirements to pay. An individual, trust, S corporation, or partnership 
99.15 	must, when prescribed in subdivision 3, paragraph (b), make payments of estimated tax. 
99.16 	For individuals, the term "estimated tax" means the amount the taxpayer estimates is the 
99.17 	sum of the taxes imposed by chapter 290 for the taxable year. For trusts, S corporations, 
99.18 	and partnerships, the term estimated tax means the amount the taxpayer estimates is the 
99.19 	sum of the taxes for the taxable year imposed by chapter 290 and the composite income tax 
99.20 	imposed by section 289A.08, subdivision 7. If the individual is an infant or incompetent 
99.21 	person, the payments must be made by the individual's guardian. If joint payments on 
99.22 	estimated tax are made but a joint return is not made for the taxable year, the estimated tax 
99.23 	for that year may be treated as the estimated tax of either the husband or the wife spouse or 
99.24 	may be divided between them.

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

99.26 	Sec. 8. Minnesota Statutes 2018, section 289A.31, subdivision 2, is amended to read:
99.27 		Subd. 2.Joint income tax returns. (a) If a joint income tax return is made by a husband 
99.28 	and wife spouses, the liability for the tax is joint and several. A spouse who qualifies for 
99.29 	relief from a liability attributable to an underpayment under section 6015(b) of the Internal 
99.30 	Revenue Code is relieved of the state income tax liability on the underpayment.
100.1 	(b) In the case of individuals who were a husband and wife married as determined in 
100.2 	section 7703 of the Internal Revenue Code prior to the dissolution of their marriage or their 
100.3 	legal separation, or prior to the death of one of the individuals, for tax liabilities reported 
100.4 	on a joint or combined return, the liability of each person is limited to the proportion of the 
100.5 	tax due on the return that equals that person's proportion of the total tax due if the husband 
100.6 	and wife each spouse filed separate returns for the taxable year. This provision is effective 
100.7 	only when the commissioner receives written notice of the marriage dissolution, legal 
100.8 	separation, or death of a spouse from the husband or wife surviving spouse. No refund may 
100.9 	be claimed by an ex-spouse, legally separated or widowed spouse for any taxes paid more 
100.10 	than 60 days before receipt by the commissioner of the written notice.
100.11 	(c) A request for calculation of separate liability pursuant to paragraph (b) for taxes 
100.12 	reported on a return must be made within six years after the due date of the return. For 
100.13 	calculation of separate liability for taxes assessed by the commissioner under section 289A.35
100.14 	or 289A.37, the request must be made within six years after the date of assessment. The 
100.15 	commissioner is not required to calculate separate liability if the remaining unpaid liability 
100.16 	for which recalculation is requested is $100 or less.

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

100.18 	Sec. 9. Minnesota Statutes 2018, section 289A.37, subdivision 6, is amended to read:
100.19 		Subd. 6.Order of assessment if joint income tax return. If a joint income tax return 
100.20 	is filed by a husband and wife spouses, an order of assessment may be a single joint notice. 
100.21 	If the commissioner has been notified by either spouse that that spouse's address has changed 
100.22 	and if that spouse requests it, then, instead of the single joint notice mailed to the last known 
100.23 	address of the husband and wife spouses, a duplicate or original of the joint notice must be 
100.24 	sent to the requesting spouse at the address designated by the requesting spouse. The other 
100.25 	joint notice must be mailed to the other spouse at that spouse's last known address. An 
100.26 	assessment is not invalid for failure to send it to a spouse if the spouse actually receives the 
100.27 	notice in the same period as if it had been mailed to that spouse at the correct address or if 
100.28 	the spouse has failed to provide an address to the commissioner other than the last known 
100.29 	address.

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

100.31 	Sec. 10. Minnesota Statutes 2018, section 290.0802, subdivision 2, is amended to read:
100.32 		Subd. 2.Subtraction. (a) A qualified individual is allowed a subtraction from federal 
100.33 	taxable income of the individual's subtraction base amount. The excess of the subtraction 
101.1 	base amount over the taxable net income computed without regard to the subtraction for 
101.2 	the elderly or disabled a person with a disability under section 290.0132, subdivision 5, 
101.3 	may be used to reduce the amount of a lump sum distribution subject to tax under section 
101.4 	290.032.
101.5 	(b)(1) The initial subtraction base amount equals
101.6 	(i) $12,000 for a married taxpayer filing a joint return if a spouse is a qualified individual,
101.7 	(ii) $9,600 for a single taxpayer, and
101.8 	(iii) $6,000 for a married taxpayer filing a separate federal return.
101.9 	(2) The qualified individual's initial subtraction base amount, then, must be reduced by 
101.10 	the sum of nontaxable retirement and disability benefits and one-half of the amount of 
101.11 	adjusted gross income in excess of the following thresholds:
101.12 	(i) $18,000 for a married taxpayer filing a joint return if both spouses are qualified 
101.13 	individuals,
101.14 	(ii) $14,500 for a single taxpayer or for a married couple filing a joint return if only one 
101.15 	spouse is a qualified individual, and
101.16 	(iii) $9,000 for a married taxpayer filing a separate federal return.
101.17 	(3) In the case of a qualified individual who is under the age of 65, the maximum amount 
101.18 	of the subtraction base may not exceed the taxpayer's disability income.
101.19 	(4) The resulting amount is the subtraction base amount.

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

101.21 	Sec. 11. Minnesota Statutes 2018, section 290.0802, subdivision 3, is amended to read:
101.22 		Subd. 3.Restrictions; married couples. Except in the case of a husband and wife
101.23 	spouses who live apart at all times during the taxable year, if the taxpayer is married at the 
101.24 	close of the taxable year, the subtraction under subdivision 2 is allowable only if the taxpayers 
101.25 	file joint federal and state income tax returns for the taxable year.

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

101.27 	Sec. 12. Minnesota Statutes 2018, section 290.091, subdivision 2, is amended to read:
101.28 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
101.29 	terms have the meanings given.
102.1 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
102.2 	year:
102.3 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
102.4 	55(b)(2) of the Internal Revenue Code;
102.5 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
102.6 	taxable income, but excluding:
102.7 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
102.8 	(ii) the medical expense deduction;
102.9 	(iii) the casualty, theft, and disaster loss deduction; and
102.10 	(iv) the impairment-related work expenses of a disabled person with a disability;
102.11 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
102.12 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
102.13 	to the extent not included in federal alternative minimum taxable income, the excess of the 
102.14 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
102.15 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
102.16 	without regard to the depletion deduction for the taxable year);
102.17 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
102.18 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
102.19 	Code determined without regard to subparagraph (E);
102.20 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
102.21 	of interest income as provided by section 290.0131, subdivision 2; and
102.22 	(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;
102.23 	less the sum of the amounts determined under the following:
102.24 	(i) interest income as defined in section 290.0132, subdivision 2;
102.25 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
102.26 	3, to the extent included in federal alternative minimum taxable income;
102.27 	(iii) the amount of investment interest paid or accrued within the taxable year on 
102.28 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
102.29 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
102.30 	in computing federal adjusted gross income;
103.1 	(iv) amounts subtracted from federal taxable income as provided by section 290.0132, 
103.2 	subdivisions 7, 9 to 15, 17, 21, 24, and 26; and
103.3 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
103.4 	paragraph (c).
103.5 	In the case of an estate or trust, alternative minimum taxable income must be computed 
103.6 	as provided in section 59(c) of the Internal Revenue Code.
103.7 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
103.8 	the Internal Revenue Code.
103.9 	(c) "Net minimum tax" means the minimum tax imposed by this section.
103.10 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
103.11 	to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 
103.12 	under this chapter.
103.13 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
103.14 	after subtracting the exemption amount determined under subdivision 3.

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

103.16 	Sec. 13. Minnesota Statutes 2018, section 290A.03, subdivision 3, is amended to read:
103.17 		Subd. 3.Income. (a) "Income" means the sum of the following:
103.18 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
103.19 	(2) the sum of the following amounts to the extent not included in clause (1):
103.20 	(i) all nontaxable income;
103.21 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
103.22 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
103.23 	carryover allowed under section 469(b) of the Internal Revenue Code;
103.24 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
103.25 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
103.26 	Code;
103.27 	(iv) cash public assistance and relief;
103.28 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
103.29 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
103.30 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
104.1 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
104.2 	gross income in the years when the payments were made;
104.3 	(vi) interest received from the federal or a state government or any instrumentality or 
104.4 	political subdivision thereof;
104.5 	(vii) workers' compensation;
104.6 	(viii) nontaxable strike benefits;
104.7 	(ix) the gross amounts of payments received in the nature of disability income or sick 
104.8 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
104.9 	or otherwise;
104.10 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
104.11 	1986, as amended through December 31, 1995;
104.12 	(xi) contributions made by the claimant to an individual retirement account, including 
104.13 	a qualified voluntary employee contribution; simplified employee pension plan; 
104.14 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
104.15 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
104.16 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
104.17 	the claimant and spouse;
104.18 	(xii) to the extent not included in federal adjusted gross income, distributions received 
104.19 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
104.20 	(xiii) nontaxable scholarship or fellowship grants;
104.21 	(xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;
104.22 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
104.23 	Code;
104.24 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
104.25 	Code; and
104.26 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
104.27 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
104.28 	In the case of an individual who files an income tax return on a fiscal year basis, the 
104.29 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
104.30 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
104.31 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
104.32 	or carryforward allowed for the year.
105.1 	(b) "Income" does not include:
105.2 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
105.3 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
105.4 	or spouse and which funding payments were not excluded from federal adjusted gross 
105.5 	income in the years when the payments were made;
105.6 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
105.7 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
105.8 	the retirement base amount reduced by the amount of contributions excluded from federal 
105.9 	adjusted gross income, but not less than zero;
105.10 	(4) surplus food or other relief in kind supplied by a governmental agency;
105.11 	(5) relief granted under this chapter;
105.12 	(6) child support payments received under a temporary or final decree of dissolution or 
105.13 	legal separation; or
105.14 	(7) restitution payments received by eligible individuals and excludable interest as 
105.15 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
105.16 	Public Law 107-16.
105.17 	(c) The sum of the following amounts may be subtracted from income:
105.18 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
105.19 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
105.20 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
105.21 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
105.22 	(5) for the claimant's fifth dependent, the exemption amount; and
105.23 	(6) if the claimant or claimant's spouse was disabled had a disability or attained the age 
105.24 	of 65 on or before December 31 of the year for which the taxes were levied or rent paid, 
105.25 	the exemption amount.
105.26 	(d) For purposes of this subdivision, the "exemption amount" means the exemption 
105.27 	amount under section 151(d) of the Internal Revenue Code for the taxable year for which 
105.28 	the income is reported; "retirement base amount" means the deductible amount for the 
105.29 	taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue 
105.30 	Code, adjusted for inflation as provided in section 219(b)(5)(C) of the Internal Revenue 
105.31 	Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional 
106.1 	or Roth style retirement account or plan" means retirement plans under sections 401, 403, 
106.2 	408, 408A, and 457 of the Internal Revenue Code.

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

106.4 	Sec. 14. Minnesota Statutes 2018, section 290A.03, subdivision 4, is amended to read:
106.5 		Subd. 4.Household. "Household" means a claimant and an individual related to the 
106.6 	claimant as husband or wife the claimant's spouse who are domiciled in the same homestead.

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

106.8 	Sec. 15. Minnesota Statutes 2018, section 290A.03, subdivision 8, is amended to read:
106.9 		Subd. 8.Claimant. (a) "Claimant" means a person, other than a dependent, as defined 
106.10 	under sections 151 and 152 of the Internal Revenue Code disregarding section 152(b)(3) 
106.11 	of the Internal Revenue Code, who filed a claim authorized by this chapter and who was a 
106.12 	resident of this state as provided in chapter 290 during the calendar year for which the claim 
106.13 	for relief was filed.
106.14 	(b) In the case of a claim relating to rent constituting property taxes, the claimant shall 
106.15 	have resided in a rented or leased unit on which ad valorem taxes or payments made in lieu 
106.16 	of ad valorem taxes, including payments of special assessments imposed in lieu of ad valorem 
106.17 	taxes, are payable at some time during the calendar year covered by the claim.
106.18 	(c) "Claimant" shall not include a resident of a nursing home, intermediate care facility, 
106.19 	long-term residential facility, or a facility that accepts housing support payments whose 
106.20 	rent constituting property taxes is paid pursuant to the Supplemental Security Income 
106.21 	program under title XVI of the Social Security Act, the Minnesota supplemental aid program 
106.22 	under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX 
106.23 	of the Social Security Act, or the housing support program under chapter 256I.
106.24 	If only a portion of the rent constituting property taxes is paid by these programs, the 
106.25 	resident shall be a claimant for purposes of this chapter, but the refund calculated pursuant 
106.26 	to section 290A.04 shall be multiplied by a fraction, the numerator of which is income as 
106.27 	defined in subdivision 3, paragraphs (a) and (b), reduced by the total amount of income 
106.28 	from the above sources other than vendor payments under the medical assistance program 
106.29 	and the denominator of which is income as defined in subdivision 3, paragraphs (a) and (b), 
106.30 	plus vendor payments under the medical assistance program, to determine the allowable 
106.31 	refund pursuant to this chapter.
107.1 	(d) Notwithstanding paragraph (c), if the claimant was a resident of the nursing home, 
107.2 	intermediate care facility, long-term residential facility, or facility for which the rent was 
107.3 	paid for the claimant by the housing support program for only a portion of the calendar year 
107.4 	covered by the claim, the claimant may compute rent constituting property taxes by 
107.5 	disregarding the rent constituting property taxes from the nursing home or facility and use 
107.6 	only that amount of rent constituting property taxes or property taxes payable relating to 
107.7 	that portion of the year when the claimant was not in the facility. The claimant's household 
107.8 	income is the income for the entire calendar year covered by the claim.
107.9 	(e) In the case of a claim for rent constituting property taxes of a part-year Minnesota 
107.10 	resident, the income and rental reflected in this computation shall be for the period of 
107.11 	Minnesota residency only. Any rental expenses paid which may be reflected in arriving at 
107.12 	federal adjusted gross income cannot be utilized for this computation. When two individuals 
107.13 	of a household are able to meet the qualifications for a claimant, they may determine among 
107.14 	them as to who the claimant shall be. If they are unable to agree, the matter shall be referred 
107.15 	to the commissioner of revenue whose decision shall be final. If a homestead property owner 
107.16 	was a part-year Minnesota resident, the income reflected in the computation made pursuant 
107.17 	to section 290A.04 shall be for the entire calendar year, including income not assignable to 
107.18 	Minnesota.
107.19 	(f) If a homestead is occupied by two or more renters, who are not husband and wife
107.20 	married to each other, the rent shall be deemed to be paid equally by each, and separate 
107.21 	claims shall be filed by each. The income of each shall be each renter's household income 
107.22 	for purposes of computing the amount of credit to be allowed.

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

107.24 	Sec. 16. Minnesota Statutes 2018, section 290A.05, is amended to read:
107.25 	290A.05 COMBINED HOUSEHOLD INCOME.
107.26 	If a person occupies a homestead with another person or persons not related to the person 
107.27 	as husband and wife the person's spouse, excluding dependents, roomers or boarders on 
107.28 	contract, and has property tax payable with respect to the homestead, the household income 
107.29 	of the claimant or claimants for the purpose of computing the refund allowed by section 
107.30 	290A.04 shall include the total income received by the other persons residing in the 
107.31 	homestead. For purposes of this section, "dependent" includes a parent of the claimant or 
107.32 	spouse who lives in the claimant's homestead and does not have an ownership interest in 
107.33 	the homestead. If a person occupies a homestead with another person or persons not related
108.1 	to the person as husband and wife the person's spouse or as dependents, the property tax 
108.2 	payable or rent constituting property tax shall be reduced as follows.
108.3 	If the other person or persons are residing at the homestead under rental or lease 
108.4 	agreement, the amount of property tax payable or rent constituting property tax shall be that 
108.5 	portion not covered by the rental agreement.

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

108.7 	Sec. 17. Minnesota Statutes 2018, section 290A.08, is amended to read:
108.8 	290A.08 ONE CLAIMANT PER HOUSEHOLD.
108.9 	Only one claimant per household per year is entitled to relief under this chapter. Payment 
108.10 	of the claim for relief may be made payable to the husband and wife spouses as one claimant. 
108.11 	The commissioner, upon written request, may issue separate checks, to the husband and 
108.12 	wife spouses for one-half of the relief provided the original check has not been issued or 
108.13 	has been returned. Individuals related as husband and wife spouses who were married during 
108.14 	the year may elect to file a joint claim which shall include each spouse's income, rent 
108.15 	constituting property taxes, and property taxes payable. Husbands and wives Spouses who 
108.16 	were married for the entire year and were domiciled in the same household for the entire 
108.17 	year must file a joint claim. The maximum dollar amount allowable for a joint claim shall 
108.18 	not exceed the amount that one person could receive.

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

108.20 	Sec. 18. Minnesota Statutes 2018, section 290A.09, is amended to read:
108.21 	290A.09 PROOF OF CLAIM.
108.22 	Every claimant shall supply to the commissioner of revenue, in support of the claim, 
108.23 	proof of eligibility under this chapter, including but not limited to amount of rent paid or 
108.24 	property taxes accrued, name and address of owner or managing agent of property rented, 
108.25 	changes in homestead, household membership, household income, size and nature of property 
108.26 	claimed as a homestead.
108.27 	Disabled Persons with a disability filing claims shall submit proof of disability in the 
108.28 	form and manner as the commissioner may prescribe. The department may require 
108.29 	examination and certification by the claimant's physician or by a physician designated by 
108.30 	the commissioner. The cost of any examination shall be borne by the claimant, unless the 
108.31 	examination proves the disability, in which case the cost of the examination shall be borne 
108.32 	by the commissioner.
109.1 	A determination of disability of a claimant by the Social Security Administration under 
109.2 	Title II or Title XVI of the Social Security Act shall constitute presumptive proof of disability.

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

109.4 	Sec. 19. Minnesota Statutes 2018, section 297A.61, subdivision 18, is amended to read:
109.5 		Subd. 18.Disabled Person with a disability. "Disabled Person with a disability" means 
109.6 	an individual who has a permanent and total disability as defined in section 273.13, 
109.7 	subdivision 22.

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

109.9 	Sec. 20. Minnesota Statutes 2018, section 297A.67, subdivision 6, is amended to read:
109.10 		Subd. 6.Other exempt meals. (a) Prepared food, candy, and soft drinks purchased for 
109.11 	and served exclusively to individuals who are 60 years of age or over and their spouses or 
109.12 	to disabled persons with a disability and their spouses by governmental agencies, nonprofit 
109.13 	organizations, or churches, or pursuant to any program funded in whole or in part through 
109.14 	United States Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or 
109.15 	served, are exempt. Taxable food sold through vending machines is not exempt.
109.16 	(b) Prepared food, candy, and soft drinks purchased for and served exclusively to children 
109.17 	who are less than 14 years of age or disabled children with a disability who are less than 
109.18 	16 years of age and who are attending a child care or early childhood education program, 
109.19 	are exempt if they are:
109.20 	(1) purchased by a nonprofit child care facility that is exempt under section 297A.70, 
109.21 	subdivision 4, and that primarily serves families with income of 250 percent or less of 
109.22 	federal poverty guidelines; and
109.23 	(2) prepared at the site of the child care facility.

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

109.25 	Sec. 21. Minnesota Statutes 2018, section 297A.67, subdivision 12, is amended to read:
109.26 		Subd. 12.Parts and accessories used to make a motor vehicle disabled accessible
109.27 	to a person with a disability. Parts, accessories, and labor charges that are used solely to 
109.28 	modify a motor vehicle to make it disabled accessible to persons with a disability are exempt.

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

110.1 	Sec. 22. Minnesota Statutes 2018, section 297A.70, subdivision 3, is amended to read:
110.2 		Subd. 3.Sales of certain goods and services to government. (a) The following sales 
110.3 	to or use by the specified governments and political subdivisions of the state are exempt:
110.4 	(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and fire 
110.5 	apparatus to a political subdivision;
110.6 	(2) machinery and equipment, except for motor vehicles, used directly for mixed 
110.7 	municipal solid waste management services at a solid waste disposal facility as defined in 
110.8 	section 115A.03, subdivision 10;
110.9 	(3) chore and homemaking services to a political subdivision of the state to be provided 
110.10 	to elderly individuals or disabled individuals persons with a disability;
110.11 	(4) telephone services to the Office of MN.IT Services that are used to provide 
110.12 	telecommunications services through the MN.IT services revolving fund;
110.13 	(5) firefighter personal protective equipment as defined in paragraph (b), if purchased 
110.14 	or authorized by and for the use of an organized fire department, fire protection district, or 
110.15 	fire company regularly charged with the responsibility of providing fire protection to the 
110.16 	state or a political subdivision;
110.17 	(6) bullet-resistant body armor that provides the wearer with ballistic and trauma 
110.18 	protection, if purchased by a law enforcement agency of the state or a political subdivision 
110.19 	of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1;
110.20 	(7) motor vehicles purchased or leased by political subdivisions of the state if the vehicles 
110.21 	are exempt from registration under section 168.012, subdivision 1, paragraph (b), exempt 
110.22 	from taxation under section 473.448, or exempt from the motor vehicle sales tax under 
110.23 	section 297B.03, clause (12);
110.24 	(8) equipment designed to process, dewater, and recycle biosolids for wastewater 
110.25 	treatment facilities of political subdivisions, and materials incidental to installation of that 
110.26 	equipment;
110.27 	(9) the removal of trees, bushes, or shrubs for the construction and maintenance of roads, 
110.28 	trails, or firebreaks when purchased by an agency of the state or a political subdivision of 
110.29 	the state;
110.30 	(10) purchases by the Metropolitan Council or the Department of Transportation of 
110.31 	vehicles and repair parts to equip operations provided for in section 174.90, including, but 
110.32 	not limited to, the Northstar Corridor Rail project; and
111.1 	(11) purchases of water used directly in providing public safety services by an organized 
111.2 	fire department, fire protection district, or fire company regularly charged with the 
111.3 	responsibility of providing fire protection to the state or a political subdivision.
111.4 	(b) For purposes of this subdivision, "firefighters personal protective equipment" means 
111.5 	helmets, including face shields, chin straps, and neck liners; bunker coats and pants, including 
111.6 	pant suspenders; boots; gloves; head covers or hoods; wildfire jackets; protective coveralls; 
111.7 	goggles; self-contained breathing apparatus; canister filter masks; personal alert safety 
111.8 	systems; spanner belts; optical or thermal imaging search devices; and all safety equipment 
111.9 	required by the Occupational Safety and Health Administration.
111.10 	(c) For purchases of items listed in paragraph (a), clause (10), the tax must be imposed 
111.11 	and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded 
111.12 	in the manner provided in section 297A.75.

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

111.14 	Sec. 23. Minnesota Statutes 2018, section 297A.70, subdivision 4, is amended to read:
111.15 		Subd. 4.Sales to nonprofit groups. (a) All sales, except those listed in paragraph (b), 
111.16 	to the following "nonprofit organizations" are exempt:
111.17 	(1) a corporation, society, association, foundation, or institution organized and operated 
111.18 	exclusively for charitable, religious, or educational purposes if the item purchased is used 
111.19 	in the performance of charitable, religious, or educational functions;
111.20 	(2) any senior citizen group or association of groups that:
111.21 	(i) in general limits membership to persons who are either age 55 or older, or physically 
111.22 	disabled persons with a physical disability;
111.23 	(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit 
111.24 	purposes, not including housing, no part of the net earnings of which inures to the benefit 
111.25 	of any private shareholders; and
111.26 	(iii) is an exempt organization under section 501(c) of the Internal Revenue Code; and
111.27 	(3) an organization that qualifies for an exemption for memberships under subdivision 
111.28 	12 if the item is purchased and used in the performance of the organization's mission.
111.29 	For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery 
111.30 	owned by a religious organization.
111.31 	(b) This exemption does not apply to the following sales:
112.1 	(1) building, construction, or reconstruction materials purchased by a contractor or a 
112.2 	subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed 
112.3 	maximum price covering both labor and materials for use in the construction, alteration, or 
112.4 	repair of a building or facility;
112.5 	(2) construction materials purchased by tax-exempt entities or their contractors to be 
112.6 	used in constructing buildings or facilities that will not be used principally by the tax-exempt 
112.7 	entities;
112.8 	(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), 
112.9 	and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, 
112.10 	subdivision 2, except wine purchased by an established religious organization for sacramental 
112.11 	purposes or as allowed under subdivision 9a; and
112.12 	(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as 
112.13 	provided in paragraph (c).
112.14 	(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01, 
112.15 	subdivision 11, only if the vehicle is:
112.16 	(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 
112.17 	passenger automobile, as defined in section 168.002, if the automobile is designed and used 
112.18 	for carrying more than nine persons including the driver; and
112.19 	(2) intended to be used primarily to transport tangible personal property or individuals, 
112.20 	other than employees, to whom the organization provides service in performing its charitable, 
112.21 	religious, or educational purpose.
112.22 	(d) A limited liability company also qualifies for exemption under this subdivision if 
112.23 	(1) it consists of a sole member that would qualify for the exemption, and (2) the items 
112.24 	purchased qualify for the exemption.

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

112.26 	Sec. 24. Minnesota Statutes 2018, section 297A.70, subdivision 16, is amended to read:
112.27 		Subd. 16.Camp fees. Fees to camps or other recreation facilities are exempt for:
112.28 	(1) services primarily for children, adults accompanying children, or persons with 
112.29 	disabilities a disability; or
112.30 	(2) educational or religious activities;
113.1 	and if the camp or facilities are owned and operated by an exempt organization under section 
113.2 	501(c)(3) of the Internal Revenue Code.

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

113.4 	Sec. 25. Minnesota Statutes 2018, section 297A.71, subdivision 22, is amended to read:
113.5 		Subd. 22.Materials used to make residential property disabled accessible to persons 
113.6 	with a disability. Building materials and equipment sold to, or stored, used, or consumed 
113.7 	by, a nonprofit organization are exempt if:
113.8 	(1) the materials and equipment are used or incorporated into modifying an existing 
113.9 	residential structure to make it disabled accessible to persons with a disability; and
113.10 	(2) the materials and equipment used in the modification would qualify for an exemption 
113.11 	under either subdivision 11 or 12 if made by the current owner of the residence.
113.12 	For purposes of this subdivision, "nonprofit organization" means any nonprofit 
113.13 	corporation, society, association, foundation, or institution organized and operated exclusively 
113.14 	for charitable, religious, educational, or civic purposes; or a veterans' group exempt from 
113.15 	federal taxation under section 501(c), clause (19), of the Internal Revenue Code.

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

113.17 	Sec. 26. Minnesota Statutes 2018, section 297A.75, subdivision 1, is amended to read:
113.18 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
113.19 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
113.20 	section 297A.62, subdivision 1, applied. The exempt items include:
113.21 	(1) building materials for an agricultural processing facility exempt under section 
113.22 	297A.71, subdivision 13;
113.23 	(2) building materials for mineral production facilities exempt under section 297A.71, 
113.24 	subdivision 14;
113.25 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
113.26 	(4) building materials used in a residence for disabled veterans with a disability exempt 
113.27 	under section 297A.71, subdivision 11;
113.28 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
113.29 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
113.30 	subdivision 23;
114.1 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
114.2 	section 297A.71, subdivision 35;
114.3 	(8) equipment and materials used for the generation, transmission, and distribution of 
114.4 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
114.5 	37;
114.6 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
114.7 	(a), clause (10);
114.8 	(10) materials, supplies, and equipment for construction or improvement of projects and 
114.9 	facilities under section 297A.71, subdivision 40;
114.10 	(11) materials, supplies, and equipment for construction, improvement, or expansion 
114.11 	of:
114.12 	(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014, 
114.13 	section 297A.71, subdivision 42;
114.14 	(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 
114.15 	45;
114.16 	(iii) a research and development facility exempt under Minnesota Statutes 2014, section 
114.17 	297A.71, subdivision 46; and
114.18 	(iv) an industrial measurement manufacturing and controls facility exempt under 
114.19 	Minnesota Statutes 2014, section 297A.71, subdivision 47;
114.20 	(12) enterprise information technology equipment and computer software for use in a 
114.21 	qualified data center exempt under section 297A.68, subdivision 42;
114.22 	(13) materials, supplies, and equipment for qualifying capital projects under section 
114.23 	297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
114.24 	(14) items purchased for use in providing critical access dental services exempt under 
114.25 	section 297A.70, subdivision 7, paragraph (c);
114.26 	(15) items and services purchased under a business subsidy agreement for use or 
114.27 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
114.28 	44;
114.29 	(16) building materials, equipment, and supplies for constructing or replacing real 
114.30 	property exempt under section 297A.71, subdivision 49; and
115.1 	(17) building materials, equipment, and supplies for constructing or replacing real 
115.2 	property exempt under section 297A.71, subdivision 50, paragraph (b).

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

115.4 	Sec. 27. Minnesota Statutes 2018, section 297B.01, subdivision 14, is amended to read:
115.5 		Subd. 14.Purchase price.  (a) "Purchase price" means the total consideration valued in 
115.6 	money for a sale, whether paid in money or otherwise. The purchase price excludes the 
115.7 	amount of a manufacturer's rebate paid or payable to the purchaser. If a motor vehicle is 
115.8 	taken in trade as a credit or as part payment on a motor vehicle taxable under this chapter, 
115.9 	the credit or trade-in value allowed by the person selling the motor vehicle shall be deducted 
115.10 	from the total selling price to establish the purchase price of the vehicle being sold and the 
115.11 	trade-in allowance allowed by the seller shall constitute the purchase price of the motor 
115.12 	vehicle accepted as a trade-in. The purchase price in those instances where the motor vehicle 
115.13 	is acquired by gift or by any other transfer for a nominal or no monetary consideration shall 
115.14 	also include the average value of similar motor vehicles, established by standards and guides 
115.15 	as determined by the motor vehicle registrar. The purchase price in those instances where 
115.16 	a motor vehicle is manufactured by a person who registers it under the laws of this state 
115.17 	shall mean the manufactured cost of such motor vehicle and manufactured cost shall mean 
115.18 	the amount expended for materials, labor, and other properly allocable costs of manufacture, 
115.19 	except that in the absence of actual expenditures for the manufacture of a part or all of the 
115.20 	motor vehicle, manufactured costs shall mean the reasonable value of the completed motor 
115.21 	vehicle.
115.22 	(b) The term "purchase price" shall not include the portion of the value of a motor vehicle 
115.23 	due solely to modifications necessary to make the motor vehicle disability accessible to 
115.24 	persons with a disability.
115.25 	(c) The term "purchase price" shall not include the transfer of a motor vehicle by way 
115.26 	of gift between a husband and wife spouses or parent and child, or to a nonprofit organization 
115.27 	as provided under subdivision 16, paragraph (c), clause (6), nor shall it include the transfer 
115.28 	of a motor vehicle by a guardian to a ward when there is no monetary consideration and the 
115.29 	title to such vehicle was registered in the name of the guardian, as guardian, only because 
115.30 	the ward was a minor.
115.31 	(d) The term "purchase price" shall not include the transfer of a motor vehicle as a gift 
115.32 	between a foster parent and foster child. For purposes of this subdivision, a foster relationship 
115.33 	exists, regardless of the age of the child, if (1) a foster parent's home is or was licensed as 
116.1 	a foster family home under Minnesota Rules, parts 2960.3000 to 2960.3340, and (2) the 
116.2 	county verifies that the child was a state ward or in permanent foster care.
116.3 	(e) There shall not be included in "purchase price" the amount of any tax imposed by 
116.4 	the United States upon or with respect to retail sales whether imposed upon the retailer or 
116.5 	the consumer.

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

116.7 	Sec. 28. Minnesota Statutes 2018, section 297B.01, subdivision 16, is amended to read:
116.8 		Subd. 16.Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale," "sells," 
116.9 	"selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor 
116.10 	vehicle, whether absolutely or conditionally, for a consideration in money or by exchange 
116.11 	or barter for any purpose other than resale in the regular course of business.
116.12 	(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or 
116.13 	by holding it in an effort to so lease it, and which is put to no other use by the owner other 
116.14 	than resale after such lease or effort to lease, shall be considered property purchased for 
116.15 	resale.
116.16 	(c) The terms also shall include any transfer of title or ownership of a motor vehicle by 
116.17 	other means, for or without consideration, except that these terms shall not include:
116.18 	(1) the acquisition of a motor vehicle by inheritance from or by bequest of, or 
116.19 	transfer-on-death of title by, a decedent who owned it;
116.20 	(2) the transfer of a motor vehicle which was previously licensed in the names of two 
116.21 	or more joint tenants and subsequently transferred without monetary consideration to one 
116.22 	or more of the joint tenants;
116.23 	(3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer 
116.24 	licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with 
116.25 	no monetary or other consideration or expectation of consideration and the parties to the 
116.26 	transfer submit an affidavit to that effect at the time the title transfer is recorded;
116.27 	(4) the transfer of a motor vehicle by gift between:
116.28 	(i) spouses;
116.29 	(ii) parents and a child; or
116.30 	(iii) grandparents and a grandchild;
117.1 	(5) the voluntary or involuntary transfer of a motor vehicle between a husband and wife
117.2 	spouses in a divorce proceeding; or
117.3 	(6) the transfer of a motor vehicle by way of a gift to an organization that is exempt from 
117.4 	federal income taxation under section 501(c)(3) of the Internal Revenue Code when the 
117.5 	motor vehicle will be used exclusively for religious, charitable, or educational purposes.

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

117.7 	Sec. 29. Minnesota Statutes 2018, section 298.018, subdivision 1, is amended to read:
117.8 		Subdivision 1.Within taconite assistance area. The proceeds of the tax paid under 
117.9 	sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 
117.10 	taconite assistance area defined in section 273.1341, shall be allocated as follows:
117.11 	(1) five percent to the city or town within which the minerals or energy resources are 
117.12 	mined or extracted, or within which the concentrate was produced. If the mining and 
117.13 	concentration, or different steps in either process, are carried on in more than one taxing 
117.14 	district, the commissioner shall apportion equitably the proceeds among the cities and towns 
117.15 	by attributing 50 percent of the proceeds of the tax to the operation of mining or extraction, 
117.16 	and the remainder to the concentrating plant and to the processes of concentration, and with 
117.17 	respect to each thereof giving due consideration to the relative extent of the respective 
117.18 	operations performed in each taxing district;
117.19 	(2) ten percent to the taconite municipal aid account to be distributed as provided in 
117.20 	section 298.282, subdivisions 1 and 2, on the dates provided under this section;
117.21 	(3) ten percent to the school district within which the minerals or energy resources are 
117.22 	mined or extracted, or within which the concentrate was produced. If the mining and 
117.23 	concentration, or different steps in either process, are carried on in more than one school 
117.24 	district, distribution among the school districts must be based on the apportionment formula 
117.25 	prescribed in clause (1);
117.26 	(4) 20 percent to a group of school districts comprised of those school districts wherein 
117.27 	the mineral or energy resource was mined or extracted or in which there is a qualifying 
117.28 	municipality as defined by section 273.134, paragraph (b), in direct proportion to school 
117.29 	district indexes as follows: for each school district, its pupil units determined under section 
117.30 	126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted 
117.31 	net tax capacity per pupil unit for school districts receiving aid under this clause as calculated 
117.32 	pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution 
117.33 	to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that 
118.1 	portion of the distribution which its index bears to the sum of the indices for all school 
118.2 	districts that receive the distributions;
118.3 	(5) 20 percent to the county within which the minerals or energy resources are mined 
118.4 	or extracted, or within which the concentrate was produced. If the mining and concentration, 
118.5 	or different steps in either process, are carried on in more than one county, distribution 
118.6 	among the counties must be based on the apportionment formula prescribed in clause (1), 
118.7 	provided that any county receiving distributions under this clause shall pay one percent of 
118.8 	its proceeds to the Range Association of Municipalities and Schools;
118.9 	(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed 
118.10 	as provided in sections 273.134 to 273.136;
118.11 	(7) five percent to the commissioner of Iron Range resources and rehabilitation for the 
118.12 	purposes of section 298.22;
118.13 	(8) three percent to the Douglas J. Johnson economic protection trust fund; and
118.14 	(9) seven percent to the taconite environmental protection fund.
118.15 	The proceeds of the tax shall be distributed on July 15 each year.

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

118.17 	Sec. 30. Minnesota Statutes 2018, section 298.018, is amended by adding a subdivision 
118.18 	to read:
118.19 		Subd. 1a.Distribution date. The proceeds of the tax allocated under subdivision 1 shall 
118.20 	be distributed on December 15 each year. Any payment of proceeds received after December 
118.21 	15 shall be distributed on the next net proceeds tax distribution date.

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

118.23 	Sec. 31. Minnesota Statutes 2018, section 298.282, subdivision 1, is amended to read:
118.24 		Subdivision 1.Distribution of taconite municipal aid account. (a) The amount 
118.25 	deposited with the county as provided in section 298.28, subdivision 3, must be distributed 
118.26 	as provided by this section among: (1) the municipalities comprising a taconite assistance 
118.27 	area under section 273.1341; (2) a township that contains a state park consisting primarily 
118.28 	of an underground iron ore mine; and (3) a city located within five miles of that state park, 
118.29 	each being referred to in this section as a qualifying municipality.
118.30 	(b) The amount deposited in the state general fund as provided in section 298.018, 
118.31 	subdivision 1, must be distributed in the same manner as provided under paragraph (a) 
119.1 	except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the 
119.2 	dates provided under section 298.018, subdivision 1a.

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

119.4 	Sec. 32. Laws 2017, First Special Session chapter 1, article 8, section 3, the effective date, 
119.5 	is amended to read:

119.6 	EFFECTIVE DATE. This section is effective for (1) petitions and appeals filed after 
119.7 	June 30, 2017, for which notices of entry of order are mailed before July 1, 2019, and (2) 
119.8 	notices of entry of order mailed after June 30, 2019.

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

APPENDIX 

Repealed Minnesota Statutes: H2169-1 

69.011 QUALIFYING FOR STATE AID.Subdivision 1.Definitions. 
Unless the language or context clearly indicates that a different meaning is intended, the following words and terms, for the purposes of this chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them: 

(a) "Commissioner" means the commissioner of revenue. 

(b) "Municipality" means: 

(1) a home rule charter or statutory city; 

(2) an organized town; 

(3) a park district subject to chapter 398; 

(4) the University of Minnesota; 

(5) for purposes of the fire state aid program only, an American Indian tribal government entity located within a federally recognized American Indian reservation; 

(6) for purposes of the police state aid program only, an American Indian tribal government with a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93; 

(7) for purposes of the police state aid program only, the Metropolitan Airports Commission; and 

(8) for purposes of the police state aid program only, the Department of Natural Resources and the Department of Public Safety with respect to peace officers covered under chapter 352B. 

(c) "Minnesota Firetown Premium Report" means a form prescribed by the commissioner containing space for reporting by insurers of fire, lightning, sprinkler leakage and extended coverage premiums received upon risks located or to be performed in this state less return premiums and dividends. 

(d) "Firetown" means the area serviced by any municipality having a qualified fire department or a qualified incorporated fire department having a subsidiary volunteer firefighters' relief association. 

(e) "Estimated market value" means latest available estimated market value of all property in a taxing jurisdiction, whether the property is subject to taxation, or exempt from ad valorem taxation obtained from information which appears on abstracts filed with the commissioner of revenue or equalized by the State Board of Equalization. 

(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the commissioner for reporting by each fire and casualty insurer of all premiums received upon direct business received by it in this state, or by its agents for it, in cash or otherwise, during the preceding calendar year, with reference to insurance written for insuring against the perils contained in auto insurance coverages as reported in the Minnesota business schedule of the annual financial statement which each insurer is required to file with the commissioner in accordance with the governing laws or rules less return premiums and dividends. 

(g) "Peace officer" means any person: 

(1) whose primary source of income derived from wages is from direct employment by a municipality or county as a law enforcement officer on a full-time basis of not less than 30 hours per week; 

(2) who has been employed for a minimum of six months prior to December 31 preceding the date of the current year's certification under subdivision 2, paragraph (b); 

(3) who is sworn to enforce the general criminal laws of the state and local ordinances; 

(4) who is licensed by the Peace Officers Standards and Training Board and is authorized to arrest with a warrant; and 

(5) who is a member of the State Patrol retirement plan or the public employees police and fire fund. 

(h) "Full-time equivalent number of peace officers providing contract service" means the integral or fractional number of peace officers which would be necessary to provide the contract service if all peace officers providing service were employed on a full-time basis as defined by the employing unit and the municipality receiving the contract service. 

(i) "Retirement benefits other than a service pension" means any disbursement authorized under section 424A.05, subdivision 3, clauses (3) and (4). 

(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means: 

(1) for the police state aid program: 

(i) the person who was elected or appointed to the specified position or, in the absence of the person, another person who is designated by the applicable governing body; 

(ii) in a park district, the secretary of the board of park district commissioners; 

(iii) in the case of the University of Minnesota, the official designated by the Board of Regents; 

(iv) for the Metropolitan Airports Commission, the person designated by the commission; 

(v) for the Department of Natural Resources or the Department of Public Safety, the respective commissioner; 

(vi) for a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the person designated by the applicable American Indian tribal government; and 

(2) for the fire state aid program and fire relief association financial reports, the person who was elected or appointed to the specified position, or, for governmental entities other than counties, if the governing body of the governmental entity designates the position to perform the function, the chief financial official of the governmental entity or the chief administrative official of the governmental entity. 

(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the retirement plan established by chapter 353G. 

Subd. 2.Qualification for fire or police state aid. 
(a) Unless retirement coverage is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in order to qualify to receive fire state aid, on or before March 15 annually, in conjunction with the financial report required pursuant to section 69.051, the clerk of each municipality having a duly organized fire department as provided in subdivision 4, or the secretary of each independent nonprofit firefighting corporation having a subsidiary incorporated firefighters' relief association, whichever is applicable, and the fire chief, shall jointly certify the existence of the municipal fire department or of the independent nonprofit firefighting corporation, whichever is applicable, which meets the minimum qualification requirements set forth in this subdivision, and the fire personnel and equipment of the municipal fire department or the independent nonprofit firefighting corporation as of the preceding December 31. 

(b) Where retirement coverage is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in order to qualify to receive fire state aid, on or before March 15, annually, the executive director of the Public Employees Retirement Association shall certify the existence of that coverage for each municipality and the municipal clerk or independent nonprofit firefighting corporation secretary, whichever applies, and the applicable fire chief shall certify the fire personnel and fire department equipment as of the preceding December 31. 

(c) Except as provided in subdivision 2b, on or before March 15 annually, in order to qualify to receive police state aid, the clerk of each municipality and the auditor of each county employing one or more peace officers as defined in subdivision 1, paragraph (g), shall certify the number of such peace officers to the commissioner on forms prescribed by the commissioner. Credit for officers employed less than a full year must be apportioned. Each full month of employment of a qualifying officer during the calendar year entitles the employing municipality or county to credit for 1/12 of the payment for employment of a peace officer for the entire year. For purposes of sections 69.011 to 69.051, employment of a peace officer commences when the peace officer is entered on the payroll of the respective municipal police department or county sheriff's department. No peace officer may be included in the certification of the number of peace officers by more than one employing unit for the same month. 

(d) A certification made under this subdivision must be filed with the commissioner, must be made on a form prescribed by the commissioner, and must include any other facts that the commissioner requires. 

Subd. 2b.Departments of Natural Resources and Public Safety. 
(a) On or before each March 15, the commissioner of natural resources shall certify the number of peace officers as defined in subdivision 1, clause (g), employed by the Enforcement Division and the commissioner of public safety shall certify the number of peace officers as defined in subdivision 1, clause (g), employed by the Bureau of Criminal Apprehension, the Gambling Enforcement Division, and the State Patrol Division. 

(b) The certification must be on a form prescribed by the commissioner. Peace officers certified under this paragraph must be included in the total certifications under subdivision 2. 

Subd. 2c.Ineligibility of certain police officers. 
A police officer employed by the University of Minnesota who is required by the Board of Regents to be a member of the University of Minnesota faculty retirement plan is not eligible to be included in any police state-aid certification under this section. 

Subd. 3.Failure to file certificate deemed waiver. 
(a) If a certification required by this section is not filed with the commissioner by the due date prescribed by this section, the commissioner shall notify the county, the municipality, or the nonprofit firefighting corporation that a portion or all of its current year aid will be forfeited if the certification is not received within ten days. 

(b) The amount of aid forfeited is equal to the amount of state police aid or state fire aid determined for the county, the municipality, or the nonprofit firefighting corporation for the current year, multiplied by five percent for each week or fraction of a week that this certification is late. The penalty must be computed beginning ten days after the postmark date of the commissioner's notification as required under this subdivision. All forfeited aid amounts revert to the general fund in the state treasury. Failure to receive the certificate form may not be used as a defense for a failure to file. 

Subd. 4.Qualification for fire state aid. 
(a) A municipality in this state qualifies to receive fire state aid if it meets the general requirements of paragraph (b) and if it meets the specific requirements of paragraph (c). 

(b) Minimum qualifications for fire state aid include the following: 

(1) having for more than one year an organized fire department and officially established by the governing body of the municipality or an independent nonprofit firefighting corporation created under the nonprofit corporation act of this state and operating exclusively for firefighting purposes and providing retirement and relief benefits to its members; and 

(2) having a separate subsidiary incorporated firefighter's relief association providing retirement and relief benefits, or participating in the voluntary statewide lump-sum volunteer firefighter retirement plan or, if a paid fire department, having retirement coverage by the public employees police and fire retirement plan. 

(c) Minimum requirements for fire state aid also include the following or their equivalent as determined by the state fire marshal: 

(1) having ten paid or volunteer firefighters including a fire chief and assistant fire chief; 

(2) having regular scheduled meetings and frequent drills including instructions in firefighting tactics and in the use, care, and operation of all fire apparatus and equipment; 

(3) having a motorized fire truck equipped with a motorized pump, 250 gallon or larger water tank, 300 feet of one inch or larger fire hose in two lines with combination spray and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent, dry chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars, axes, lanterns, fire coats, helmets, and boots; 

(4) having apparatus suitably housed in a building of good construction with facilities for care of hose and equipment; 

(5) having a reliable and adequate method of receiving fire alarms by telephone or with electric siren and suitable means of sounding an alarm; 

(6) if response is to be provided outside the corporate limits of the municipality wherein the fire department is located, having another piece of motorized apparatus to make the response; and 

(7) meeting other requirements that the commissioner establishes by rule. 

69.021 REPORTING PREMIUMS; CALCULATION OF AID.Subdivision 1.Minnesota Firetown Premium Report and Minnesota Aid to Police Premium Report. 
The commissioner shall, at the time of mailing tax forms, send blank copies of the Minnesota Firetown Premium Report and when applicable the Minnesota Aid to Police Premium Report to each insurer, including township and farmers mutual insurance companies licensed to write insurance as described in section 69.011, subdivision 1, clauses (c) and (f) in this state. These reports must contain space for the insurers name, address, gross premiums less return premiums, dividends, net premiums, certification and other facts that the commissioner may require. 

Subd. 2.Report of premiums. 
(a) Each insurer, including township and farmers mutual insurers where applicable, shall return to the commissioner the reports described in subdivision 1 certified by its secretary and president or chief financial officer. 

(b) The Minnesota Firetown Premium Report must contain a true and accurate statement of the total premium for all gross direct fire, lightning, sprinkler leakage, and extended coverage insurance of all domestic mutual insurers and the total premiums for all gross direct fire, lightning, sprinkler leakage and extended coverage insurance of all other insurers, less return premiums and dividends received by them on that business written or done during the preceding calendar year upon property located within the state or brought into the state for temporary use. The fire and extended coverage portion of multiperil and multiple peril package premiums and all other combination premiums must be determined by applying percentages determined by the commissioner or by rating bureaus recognized by the commissioner. 

(c) The Minnesota Aid to Police Premium Report must contain a true and accurate statement of the total premiums, less return premiums and dividends, on all direct business received by such insurer in this state, or by its agents for it, in cash or otherwise, during the preceding calendar year, with reference to insurance written for perils described in section 69.011, subdivision 1, clause (f). 

Subd. 3.Penalty for fraudulent, incorrect, incomplete returns and late filing of report. 
(a) When it appears to the commissioner that any insurer has made an incomplete or inaccurate report, the commissioner shall return the report and demand that a complete and accurate report be filed. If the insurer fails to file a report on or before March 1, annually, the insurer is liable and shall pay $25 for each seven days, or fraction thereof, that the report is delinquent, but not to exceed $200. If the insurer fails to file a corrected report within 30 days after demand, the insurer is liable for the penalties provided in paragraph (b) or (c) for knowingly filing an inaccurate or false report. 

(b) Any insurer which knowingly makes and files an inaccurate or false report is liable to a fine in an amount of not less than $25 nor more than $1,000, as determined by the commissioner, and additionally the commissioner of commerce may revoke the insurer's certificate of authority. 

(c) Any person whose duty it is to make the report who fails or refuses to make it within 30 days after notification by the commissioner shall be fined an amount of not more than $1,000. 

(d) Failure of the insurer to receive a reporting form does not excuse the insurer from filing the report. 

Subd. 4.Determination of qualified state aid recipients; certification to commissioner of management and budget. 
(a) The commissioner shall determine which municipalities and independent nonprofit firefighting corporations are qualified to receive fire state aid directly or are qualified to receive the benefit of fire state aid paid to the voluntary statewide lump-sum volunteer firefighter retirement plan and which municipalities and counties are qualified to receive police state aid. 

(b) The commissioner shall determine qualification for state aid upon receipt of: 

(1) the fire department personnel and equipment certification or the police department and qualified peace officers certificate, whichever applies, required under section 69.011; 

(2) the financial compliance report required under section 6.495, subdivision 3, if applicable; and 

(3) any other relevant information which comes to the attention of the commissioner. 

(c) Upon completion of the determination, on or before October 1, the commissioner shall calculate the amount of: 

(1) the police state aid which each county or municipality is to receive under subdivisions 5, 6, 7a, and 10; and 

(2) the fire state aid which each municipality or nonprofit firefighting corporation is to receive under subdivisions 5 and 7. 

(d) The commissioner shall certify to the commissioner of management and budget the name of each county or municipality, and the amount of state aid which each county or municipality is to receive, in the case of police state aid. The commissioner shall certify to the commissioner of management and budget the name of each municipality or independent nonprofit firefighting corporation and the amount of state aid which each municipality or independent nonprofit firefighting corporation is to receive directly or the amount of state aid which the voluntary statewide lump-sum volunteer firefighter retirement plan is qualified to receive on behalf of the municipality or corporation, in the case of fire state aid. 

Subd. 5.Calculation of state aid. 
(a) The amount of fire state aid available for apportionment, before the addition of the minimum fire state aid allocation amount under subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the commissioner by insurers on the Minnesota Firetown Premium Report. This amount must be reduced by the amount required to pay the state auditor's costs and expenses of the audits or exams of the firefighters relief associations. 

The total amount for apportionment in respect to fire state aid must not be less than two percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown Premium Report after subtracting the following amounts: 

(1) the amount required to pay the state auditor's costs and expenses of the audits or exams of the firefighters relief associations; and 

(2) one percent of the premiums reported by township mutual insurance companies and mutual property and casualty companies with total assets of $5,000,000 or less. 

(b) The total amount for apportionment as police state aid is equal to 104 percent of the amount of premium taxes paid to the state on the premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report. The total amount for apportionment in respect to the police state aid program must not be less than two percent of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report. 

(c) The commissioner shall calculate the percentage of increase or decrease reflected in the apportionment over or under the previous year's available state aid using the same premiums as a basis for comparison. 

(d) In addition to the amount for apportionment of police state aid under paragraph (b), each year $100,000 must be apportioned for police state aid. An amount sufficient to pay this increase is annually appropriated from the general fund. 

Subd. 7.Apportionment of fire state aid to municipalities and relief associations. 
(a) The commissioner shall apportion the fire state aid relative to the premiums reported on the Minnesota Firetown Premium Reports filed under this chapter to each municipality and/or firefighters relief association qualified under section 69.011, subdivision 4. 

(b) The commissioner shall calculate an initial fire state aid allocation amount for each municipality or fire department under paragraph (c) and, if applicable, a minimum fire state aid allocation amount for each municipality or fire department under paragraph (d). The municipality or fire department must be apportioned the larger fire state aid amount. 

(c) The initial fire state aid allocation amount is the amount available for apportionment as fire state aid under subdivision 5, without the inclusion of any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, allocated one-half in proportion to the population as shown in the last official statewide federal census for each fire town and one-half in proportion to the estimated market value of each fire town, including (1) the estimated market value of tax-exempt property and (2) the estimated market value of natural resources lands receiving in lieu payments under sections 477A.11 to 477A.14, but excluding the estimated market value of minerals. In the case of incorporated or municipal fire departments furnishing fire protection to other cities, towns, or townships as evidenced by valid fire service contracts filed with the commissioner, the distribution must be adjusted proportionately to take into consideration the crossover fire protection service. Necessary adjustments must be made to subsequent apportionments. In the case of municipalities or independent fire departments qualifying for the aid, the commissioner shall calculate the state aid for the municipality or relief association on the basis of the population and the estimated market value of the area furnished fire protection service by the fire department as evidenced by duly executed and valid fire service agreements filed with the commissioner. If one or more fire departments are furnishing contracted fire service to a city, town, or township, only the population and estimated market value of the area served by each fire department may be considered in calculating the state aid and the fire departments furnishing service shall enter into an agreement apportioning among themselves the percent of the population and the percent of the estimated market value of each shared service area. The agreement must be in writing and must be filed with the commissioner. 

(d) The minimum fire state aid allocation amount is the amount in addition to the initial fire state allocation amount that is derived from any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, and allocated to municipalities with volunteer firefighters relief associations or covered by the voluntary statewide lump-sum volunteer firefighter retirement plan based on the number of active volunteer firefighters who are members of the relief association as reported in the annual financial reporting for the calendar year 1993 to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or fire departments with volunteer firefighters relief associations receive in total at least a minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 30 firefighters. If a relief association is established after calendar year 1993 and before calendar year 2000, the number of active volunteer firefighters who are members of the relief association as reported in the annual financial reporting for calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, shall be used in this determination. If a relief association is established after calendar year 1999, the number of active volunteer firefighters who are members of the relief association as reported in the first annual financial reporting submitted to the Office of the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this determination. If a relief association is terminated as a result of providing retirement coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, the number of active volunteer firefighters of the municipality covered by the statewide plan as certified by the executive director of the Public Employees Retirement Association to the commissioner and the state auditor, but not to exceed 30 active firefighters, must be used in this determination. 

(e) Unless the firefighters of the applicable fire department are members of the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must be paid to the treasurer of the municipality where the fire department is located and the treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit the aid to the relief association if the relief association has filed a financial report with the treasurer of the municipality and has met all other statutory provisions pertaining to the aid apportionment. If the firefighters of the applicable fire department are members of the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must be paid to the executive director of the Public Employees Retirement Association and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund. 

(f) The commissioner may make rules to permit the administration of the provisions of this section. 

(g) Any adjustments needed to correct prior misallocations must be made to subsequent fire state aid apportionments. 

Subd. 7a.Apportionment of police state aid. 
(a) Subject to the reduction provided for under subdivision 10, the commissioner shall apportion the police state aid to each municipality, to each county, and to the Departments of Natural Resources and Public Safety in the following manner: 

(1) for all municipalities maintaining police departments, counties, the Department of Natural Resources, and the Department of Public Safety, the police state aid must be distributed in proportion to the relationship that the total number of peace officers, as determined under section 69.011, subdivision 1, paragraph (g), and subdivision 2, paragraph (b), employed by that employing unit for 12 calendar months and the proportional or fractional number who were employed less than 12 months bears to the total number of peace officers employed by all municipalities, counties, the Departments of Natural Resources and Public Safety, subject to any reduction under subdivision 10; 

(2) for each municipality which contracts with the county for police service, a proportionate amount of the state aid distributed to the county based on the full-time equivalent number of peace officers providing contract service to that municipality must be credited against the municipality's contract obligation; and 

(3) for each municipality which contracts with another municipality for police service, a proportionate amount of the state aid distributed to the municipality providing contract service based on the full-time equivalent number of peace officers providing contract service to that municipality on a full-time equivalent basis must be credited against the contract obligation of the municipality receiving contract service. 

(b) Any necessary additional adjustments must be made to subsequent police state aid apportionments. 

Subd. 8.Population and estimated market value. 
(a) In computations relating to fire state aid requiring the use of population figures, only official statewide federal census figures may be used. Increases or decreases in population disclosed by reason of any special census must not be taken into consideration. 

(b) In calculations relating to fire state aid requiring the use of estimated market value property figures, only the latest available estimated market value property figures may be used. 

Subd. 9.Appeal. 
(a) In the event that a municipality, a county, a fire relief association, the Department of Natural Resources, the Department of Public Safety, or the voluntary statewide lump-sum volunteer firefighter retirement plan, feels itself to be aggrieved, it may request the commissioner to review and adjust the apportionment of funds within the county in the case of police state aid, or within the state in the case of fire state aid. 

(b) The decision of the commissioner is subject to appeal, review, and adjustment by the district court in the county in which the applicable municipality or fire department is located or by the Ramsey County District Court with respect to the Department of Natural Resources, the Department of Public Safety, or the voluntary statewide lump-sum volunteer firefighter retirement plan. 

Subd. 10.Reduction in police state aid apportionment. 
(a) The commissioner of revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph (b), 6, and 7a, for eligible employer units by the amount of any excess police state aid. 

(b) "Excess police state aid" is: 

(1) for counties and for municipalities in which police retirement coverage is provided wholly by the public employees police and fire fund and all police officers are members of the plan governed by sections 353.63 to 353.657, the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the Public Employees Retirement Association; 

(2) for the Metropolitan Airports Commission, the amount in excess of the commission's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the Public Employees Retirement Association; and 

(3) for the Department of Natural Resources and for the Department of Public Safety, the amount in excess of the employer's total prior calendar year obligation under section 352B.02, subdivision 1c, for plan members who are peace officers under section 69.011, subdivision 1, paragraph (g), as certified by the executive director of the Minnesota State Retirement System. 

(c) The employer's total prior calendar year obligation with respect to the public employees police and fire plan under paragraph (b), clause (1), is the total prior calendar year obligation under section 353.65, subdivision 3, for police officers as defined in section 353.64, subdivisions 1, 1a, and 2, and the actual total prior calendar year obligation under section 353.65, subdivision 3, for firefighters, as defined in section 353.64, subdivisions 1, 1a, and 2, but not to exceed for those firefighters the applicable following employer calendar year amount: 

		Municipality	Maximum Amount		
		Albert Lea	$54,157.01		
		Anoka	10,399.31		
		Apple Valley	5,442.44		
		Austin	49,864.73		
		Bemidji	27,671.38		
		Brooklyn Center	6,605.92		
		Brooklyn Park	24,002.26		
		Burnsville	15,956.00		
		Cloquet	4,260.49		
		Coon Rapids	39,920.00		
		Cottage Grove	8,588.48		
		Crystal	5,855.00		
		East Grand Forks	51,009.88		
		Edina	32,251.00		
		Elk River	5,216.55		
		Ely	13,584.16		
		Eveleth	16,288.27		
		Fergus Falls	6,742.00		
		Fridley	33,420.64		
		Golden Valley	11,744.61		
		Hastings	16,561.00		
		Hopkins	4,324.23		
		International Falls	14,400.69		
		Lakeville	782.35		
		Lino Lakes	5,324.00		
		Little Falls	7,889.41		
		Maple Grove	6,707.54		
		Maplewood	8,476.69		
		Minnetonka	10,403.00		
		Montevideo	1,307.66		
		Moorhead	68,069.26		
		New Hope	6,739.72		
		North St. Paul	4,241.14		
		Northfield	770.63		
		Owatonna	37,292.67		
		Plymouth	6,754.71		
		Red Wing	3,504.01		
		Richfield	53,757.96		
		Rosemount	1,712.55		
		Roseville	9,854.51		
		St. Anthony	33,055.00		
		St. Louis Park	53,643.11		
		Thief River Falls	28,365.04		
		Virginia	31,164.46		
		Waseca	11,135.17		
		West St. Paul	15,707.20		
		White Bear Lake	6,521.04		
		Woodbury	3,613.00		
		any other municipality	0.00		

(d) The total amount of excess police state aid must be deposited in the excess police state-aid account in the general fund, administered and distributed as provided in subdivision 11. 

Subd. 11.Excess police state-aid holding account. 
(a) The excess police state-aid holding account is established in the general fund. The excess police state-aid holding account must be administered by the commissioner. 

(b) Excess police state aid determined according to subdivision 10, must be deposited annually in the excess police state-aid holding account. 

(c) From the balance in the excess police state-aid holding account, $900,000 must be canceled annually to the general fund. 

(d) On October 1 of each year, one-half of the balance of the excess police state-aid holding account remaining after the deduction under paragraph (c) is appropriated for additional amortization aid under section 423A.02, subdivision 1b. 

(e) Annually, the remaining balance in the excess police state-aid holding account, after the deductions under paragraphs (c) and (d) cancels to the general fund. 

69.022 VOLUNTEER RETENTION STIPEND AID PILOT.Subdivision 1.Definitions. 
(a) For purposes of this section, the following terms have the meanings given them. 

(b) "Commissioner," unless otherwise specified, means the commissioner of public safety. 

(c) "Emergency medical services provider" means a licensee as defined under section 144E.001, subdivision 8. 

(d) "Independent nonprofit firefighting corporation" has the same meaning as used in chapter 424A. 

(e) "Municipality" has the meaning given in section 69.011, but only if the municipality uses one or more qualified volunteers to provide service. 

(f) "Qualified entity" means an emergency medical services provider, independent nonprofit firefighting corporation, or municipality. 

(g) "Qualified volunteer" means one of the following types of volunteers who has provided service, for the entire prior calendar year, to one or more qualified entities: 

(1) a volunteer firefighter as defined in section 299N.03, subdivision 7; 

(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; or 

(3) an emergency medical responder as defined in section 144E.001, subdivision 6, who provides emergency medical services as a volunteer. 

(h) "Pilot area" means the following groups of counties: 

(1) southern Minnesota, consisting of the counties of Faribault, Fillmore, Freeborn, Houston, and Watonwan; 

(2) west central Minnesota, consisting of the counties of Chippewa, Kandiyohi, Redwood, and Renville; 

(3) central Minnesota, consisting of the counties of Morrison and Todd; and 

(4) north central Minnesota, consisting of the counties of Beltrami, Clearwater, and Mahnomen. 

Subd. 2.Certification. 
By June 1 of the calendar year following the year in which the qualified volunteer provided service, the commissioner shall certify to the commissioner of revenue each qualified volunteer's name and the qualified entity for which the qualified volunteer provided service, but the commissioner must remove duplicate listings of qualified volunteers who provided service to more than one qualified entity so that each qualified volunteer is listed only once. The commissioner shall also certify to the commissioner of revenue the total amount of aid to be paid to each qualified entity under subdivision 3. For qualified entities that are not municipalities, the commissioner must indicate the municipality to which the aid is to be paid, as designated by the qualified entity. 

Subd. 3.Aid payment and calculation. 
The commissioner of revenue shall pay aid to qualified entities located in the pilot area to provide funds for the qualified entities to pay annual volunteer retention stipends to qualified volunteers who provide services to the qualified entities. A qualified entity is located in the pilot area if it is a municipality located in whole or in part in the pilot area, or if it is an emergency medical services provider or independent nonprofit firefighting corporation with its main office located in the pilot area. The amount of the aid equals $500 multiplied by the number of qualified volunteers. For purposes of calculating this aid, each individual providing volunteer service, regardless of the different types of service provided, is one qualified volunteer. The commissioner of revenue shall pay the aid to qualified entities by July 15 of the calendar year following the year in which the qualified volunteer provided service. If a qualified entity is not a municipality, the commissioner shall pay the aid to the treasurer of the municipality designated by the qualified entity. The treasurer of the municipality shall, within 30 days of receipt of the aid, transmit the aid to the qualified entity. 

Subd. 4.Application. 
Each year each qualified entity in the pilot area may apply to the commissioner for aid under this section. The application must be made at the time and in the form prescribed by the commissioner and must provide sufficient information to permit the commissioner to determine the applicant's entitlement to aid under this section. 

Subd. 5.Payment of stipends. 
A qualified entity receiving state aid under this section must pay the aid as retention stipends of $500 to qualified volunteers no later than September 15 of the year in which the aid was received. 

Subd. 6.Report. 
No later than January 15, 2018, the commissioner must report to the chairs and ranking minority members of the legislative committees having jurisdiction over public safety and taxes in the senate and the house of representatives, in compliance with sections 3.195 and 3.197, on aid paid under this section. The report must include: 

(1) for each county in the pilot area, a listing of the qualified entities that received aid in each of the three years of the pilot; 

(2) the amount of aid paid to each qualified entity that received aid in each of the three years of the pilot; and 

(3) for each qualified entity that received aid, the number of qualified volunteers who were paid stipends in each of the three years of the pilot, and the number of qualified volunteers in the year preceding the pilot. 

The report must also provide information on the number of qualified volunteers providing service to qualified entities in comparison counties in each of the three years of the pilot and in the year preceding the pilot, and must summarize changes in the number of qualified volunteers during the year preceding the pilot and during the three years of the pilot both within the pilot area and in the comparison counties. For purposes of this subdivision, "comparison counties" means counties designated by the commissioner to include at least half of the counties that border each group of counties in the pilot area, as specified in subdivision 1. Qualified entities in comparison counties must provide information to the commissioner necessary to the report in this subdivision in the form and manner required by the commissioner. 

Subd. 7.Appropriation. 
An amount sufficient to pay the state aid under this section is appropriated from the general fund to the commissioner of revenue. 

Subd. 8.Sunset. 
This section expires for aid payable after calendar year 2017, except that the reporting requirement in subdivision 6 remains in effect through 2018. 

69.031 COMMISSIONER OF MANAGEMENT AND BUDGET; WARRANT, APPROPRIATION, PAYMENT AND ADMINISTRATION.Subdivision 1.Commissioner's warrant. 
(a) The commissioner of management and budget shall issue to the Public Employees Retirement Association on behalf of a municipality or independent nonprofit firefighting corporation that is a member of the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, to the Department of Natural Resources, the Department of Public Safety, or the county, municipality, or independent nonprofit firefighting corporation certified to the commissioner of management and budget by the commissioner a warrant for an amount equal to the amount of fire state aid or police state aid, whichever applies, certified for the applicable state aid recipient by the commissioner under section 69.021. 

(b) Fire state aid and police state aid is payable on October 1 annually. The amount of state aid due and not paid by October 1 accrues interest payable to the state aid recipient at the rate of one percent for each month or part of a month that the amount remains unpaid after October 1. 

Subd. 3.Appropriations. 
There is hereby appropriated annually from the state general fund to the commissioner of revenue amounts sufficient to make the police state aid payments and the fire state aid payments specified in this section and section 69.021. 

Subd. 5.Deposit of state aid. 
(a) If the municipality or the independent nonprofit firefighting corporation is covered by the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, the executive director shall credit the fire state aid against future municipal contribution requirements under section 353G.08 and shall notify the municipality or independent nonprofit firefighting corporation of the fire state aid so credited at least annually. If the municipality or the independent nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt, transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief association if there is one organized and the association has filed a financial report with the municipality. If the relief association has not filed a financial report with the municipality, the municipal treasurer shall delay transmission of the fire state aid to the relief association until the complete financial report is filed. If the municipality or independent nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan, if there is no relief association organized, or if the association has dissolved or has been removed as trustees of state aid, then the treasurer of the municipality shall deposit the money in the municipal treasury and the money may be disbursed only for the purposes and in the manner set forth in section 424A.08 or for the payment of the employer contribution requirement with respect to firefighters covered by the public employees police and fire retirement plan under section 353.65, subdivision 3. 

(b) For a municipality in which police retirement coverage is provided by the public employees police and fire fund and all peace officers are members of the fund, including municipalities covered by section 353.665, the total state aid must be applied toward the municipality's employer contribution to the public employees police and fire fund under sections 353.65, subdivision 3, and 353.665, subdivision 8. 

(c) The county treasurer, upon receipt of the police state aid for the county, shall apply the total state aid toward the county's employer contribution to the public employees police and fire fund under section 353.65, subdivision 3. 

(d) The designated Metropolitan Airports Commission official, upon receipt of the police state aid for the Metropolitan Airports Commission, shall apply the total police state aid toward the commission's employer contribution for police officers to the public employees police and fire plan under section 353.65, subdivision 3. 

(e) The police state aid apportioned to the Departments of Public Safety and Natural Resources under section 69.021, subdivision 7a, is appropriated to the commissioner of management and budget for transfer to the funds and accounts from which the salaries of peace officers certified under section 69.011, subdivision 2b, are paid. The commissioner of revenue shall certify to the commissioners of public safety, natural resources, and management and budget the amounts to be transferred from the appropriation for police state aid. The commissioners of public safety and natural resources shall certify to the commissioner of management and budget the amounts to be credited to each of the funds and accounts from which the peace officers employed by their respective departments are paid. Each commissioner shall allocate the police state aid first for employer contributions for employees funded from the general fund and then for employer contributions for employees funded from other funds. For peace officers whose salaries are paid from the general fund, the amounts transferred from the appropriation for police state aid must be canceled to the general fund. 

69.041 SHORTFALL FROM GENERAL FUND.
(a) If the annual funding requirements of fire or police relief associations or consolidation accounts under sections 424A.091 to 424A.095, or Laws 2013, chapter 111, article 5, sections 31 to 42, exceed all applicable revenue sources of a given year, including the insurance premium taxes funding the applicable fire or police state aid as set under section 297I.05, subdivisions 2, 3, and 4, the shortfall in the annual funding requirements must be paid from the general fund to the extent appropriated by the legislature. 

(b) Nothing in this section may be deemed to relieve any municipality from its obligation to a relief association or consolidation account under law. 

69.051 FINANCIAL REPORT, BOND, EXAMINATION.Subdivision 1.Financial report and audit. 
(a) The board of the Bloomington Fire Department Relief Association and each volunteer firefighters relief association as defined in section 424A.001, subdivision 4, with assets of at least $500,000 or liabilities of at least $500,000 in the prior year or in any previous year, according to the applicable actuarial valuation or according to the financial report if no valuation is required, shall prepare a financial report covering the special and general funds of the relief association for the preceding fiscal year, file the financial report, and submit financial statements. 

(b) The financial report must contain financial statements and disclosures which present the true financial condition of the relief association and the results of relief association operations in conformity with generally accepted accounting principles and in compliance with the regulatory, financing and funding provisions of this chapter and any other applicable laws. The financial report must be countersigned by: 

(1) the municipal clerk or clerk-treasurer of the municipality in which the relief association is located if the relief association is a firefighters relief association which is directly associated with a municipal fire department; or 

(2) by the municipal clerk or clerk-treasurer of the largest municipality in population which contracts with the independent nonprofit firefighting corporation if the volunteer firefighter relief association is a subsidiary of an independent nonprofit firefighting corporation and by the secretary of the independent nonprofit firefighting corporation; or 

(3) by the chief financial official of the county in which the volunteer firefighter relief association is located or primarily located if the relief association is associated with a fire department that is not located in or associated with an organized municipality. 

(c) The financial report must be retained in its office for public inspection and must be filed with the governing body of the government subdivision in which the associated fire department is located after the close of the fiscal year. One copy of the financial report must be furnished to the state auditor after the close of the fiscal year. 

(d) Audited financial statements must be attested to by a certified public accountant or by the state auditor and must be filed with the state auditor within 180 days after the close of the fiscal year. The state auditor may accept this report in lieu of the report required in paragraph (c). 

Subd. 1a.Financial statement. 
(a) The board of each volunteer firefighter relief association, as defined in section 424A.001, subdivision 4, that is not required to file a financial report and audit under subdivision 1 must prepare a detailed statement of the financial affairs for the preceding fiscal year of the relief association's special and general funds in the style and form prescribed by the state auditor. The detailed statement must show: 

(1) the sources and amounts of all money received; 

(2) all disbursements, accounts payable and accounts receivable; 

(3) the amount of money remaining in the treasury; 

(4) total assets, including a listing of all investments; 

(5) the accrued liabilities; and 

(6) all other items necessary to show accurately the revenues and expenditures and financial position of the relief association. 

(b) The detailed financial statement of the special and general funds required under paragraph (a) must be certified by a certified public accountant or by the state auditor in accordance with agreed-upon procedures and forms prescribed by the state auditor. The accountant must have at least five years of public accounting, auditing, or similar experience, and must not be an active, inactive, or retired member of the relief association or the fire department. 

(c) The detailed financial statement required under paragraph (a) must be countersigned by: 

(1) the municipal clerk or clerk-treasurer of the municipality; or 

(2) where applicable, by the municipal clerk or clerk-treasurer of the largest municipality in population which contracts with the independent nonprofit firefighting corporation if the relief association is a subsidiary of an independent nonprofit firefighting corporation and by the secretary of the independent nonprofit firefighting corporation; or 

(3) by the chief financial official of the county in which the volunteer firefighter relief association is located or primarily located if the relief association is associated with a fire department that is not located in or associated with an organized municipality. 

(d) The volunteer firefighters' relief association board must file the detailed financial statement required under paragraph (a) in the relief association office for public inspection and present it to the governing body of the municipality within 45 days after the close of the fiscal year, and must submit a copy of the certified detailed financial statement to the state auditor within 90 days of the close of the fiscal year. 

(e) A certified public accountant or auditor who performs the agreed-upon procedures under paragraph (b) is subject to the reporting requirements of section 6.67. 

Subd. 1b.Qualification. 
The state auditor may, upon a demonstration by a relief association of hardship or an inability to conform, extend the deadline for reports under subdivisions 1 or 1a, but not beyond November 30th following the due date. If the reports are not received by November 30th, the municipality or relief association forfeits its current year state aid, and, until the state auditor receives the required information, the relief association or municipality is ineligible to receive any future state aid. A municipality or firefighters' relief association does not qualify initially to receive, or be entitled subsequently to retain, state aid under this chapter if the financial reporting requirement or the applicable requirements of this chapter or any other statute or special law have not been complied with or are not fulfilled. 

Subd. 2.Treasurers bond. 
(a) The treasurer of the Bloomington Fire Department Relief Association may not enter upon duties without having given the association a bond in a reasonable amount acceptable to the municipality for the faithful discharge of duties according to law. 

(b) No treasurer of a relief association governed by sections 424A.091 to 424A.096  may enter upon the duties of the office until the treasurer has given the association a good and sufficient bond in an amount equal to at least ten percent of the assets of the relief association; however, the amount of the bond need not exceed $500,000. 

Subd. 3.Report by certain municipalities; exceptions. 
(a) The chief administrative officer of each municipality which has an organized fire department but which does not have a firefighters' relief association governed by sections 424A.091 to 424A.095 or Laws 2014, chapter 275, article 2, section 23, and which is not exempted under paragraph (b) or (c) shall annually prepare a detailed financial report of the receipts and disbursements by the municipality for fire protection service during the preceding calendar year on a form prescribed by the state auditor. The financial report must contain any information which the state auditor deems necessary to disclose the sources of receipts and the purpose of disbursements for fire protection service. The financial report must be signed by the municipal clerk or clerk-treasurer of the municipality. The financial report must be filed by the municipal clerk or clerk-treasurer with the state auditor on or before July 1 annually. The municipality does not qualify initially to receive, and is not entitled subsequently to retain, state aid under this chapter if the financial reporting requirement or the applicable requirements of this chapter or any other statute or special law have not been complied with or are not fulfilled. 

(b) Each municipality that has an organized fire department and provides retirement coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G qualifies to have fire state aid transmitted to and retained in the statewide lump-sum volunteer firefighter retirement fund without filing a detailed financial report if the executive director of the Public Employees Retirement Association certifies compliance by the municipality with the requirements of sections 353G.04 and 353G.08, paragraph (e), and certifies conformity by the applicable fire chief with the requirements of section 353G.07. 

(c) Each municipality qualifies to receive fire state aid under this chapter without filing a financial report under paragraph (a) if the municipality: 

(1) has an organized fire department; 

(2) does not have a volunteer firefighters relief association directly associated with its fire department; 

(3) does not participate in the statewide lump-sum volunteer firefighter retirement plan under chapter 353G; 

(4) provides retirement coverage to its firefighters through the public employees police and fire retirement plan under sections 353.63 to 353.68; and 

(5) is certified by the executive director of the Public Employees Retirement Association to the state auditor to have had an employer contribution under section 353.65, subdivision 3, for its firefighters for the immediately prior calendar year equal to or greater than its fire state aid for the immediately prior calendar year. 

Subd. 4.Notification by commissioner and state auditor. 
(a) The state auditor, in performing an audit or examination, shall notify the Legislative Commission on Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or nonfeasance in office by relief association officials or municipal officials. 

(b) The commissioner shall notify the Legislative Commission on Pensions and Retirement if the state auditor has not filed the required financial compliance reports by July 1. 

69.33 REPORT; AMOUNT OF PREMIUMS RECEIVED BY INSURANCE COMPANIES.
For purposes of the first class city fire insurance premium tax surcharge aid program under section 297I.10, the commissioner shall enclose in the annual statement blank that is sent to all fire insurance companies doing business in this state a blank form containing the names of all cities of the first class and require these companies, at the time of making their annual statements to the commissioner, to state on these blanks the amount of premiums received by them upon properties insured within the corporate limits of the cities named thereon during the year ending December 31st last past. Thereafter, before July first each year, the commissioner shall certify to the commissioner of management and budget the information thus obtained, together with the amount of the tax for the benefit of the pension plans covering firefighters in cities of the first class paid in such year by these companies upon these insurance premiums. 

69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.
(a) Notwithstanding any provision of law to the contrary, the payment of the following necessary, reasonable and direct expenses of maintaining, protecting and administering the special fund, when provided for in the bylaws of the association and approved by the board of trustees, constitutes authorized administrative expenses of a volunteer firefighters' relief association organized under any law of this state or the Bloomington Fire Department Relief Association: 

(1) office expense, including, but not limited to, rent, utilities, equipment, supplies, postage, periodical subscriptions, furniture, fixtures, and salaries of administrative personnel; 

(2) salaries of the officers of the association, or their designees, and salaries of the members of the board of trustees of the association if the salary amounts are approved by the governing body of the entity that is responsible for meeting any minimum obligation under section 424A.092 or 424A.093, or Laws 2013, chapter 111, article 5, sections 31 to 42, and the itemized expenses of relief association officers and board members that are incurred as a result of fulfilling their responsibilities as administrators of the special fund; 

(3) tuition, registration fees, organizational dues, and other authorized expenses of the officers or members of the board of trustees incurred in attending educational conferences, seminars, or classes relating to the administration of the relief association; 

(4) audit and audit-related services, accounting and accounting-related services, and actuarial, medical, legal, and investment and performance evaluation expenses; 

(5) filing and application fees payable by the relief association to federal or other governmental entities; 

(6) reimbursement to the officers and members of the board of trustees, or their designees, for reasonable and necessary expenses actually paid and incurred in the performance of their duties as officers or members of the board; and 

(7) premiums on fiduciary liability insurance and official bonds for the officers, members of the board of trustees, and employees of the relief association. 

(b) Any other expenses of the relief association must be paid from the general fund of the association, if one exists. If a relief association has only one fund, that fund is the special fund for purposes of this section. If a relief association has a special fund and a general fund, and any expense of the relief association that is directly related to the purposes for which both funds were established, the payment of that expense must be apportioned between the two funds on the basis of the benefits derived by each fund. 

270C.131 EXPLORE MINNESOTA TOURISM TAX REPORT.
Within 30 days of the end of each quarter, the Department of Revenue shall provide Explore Minnesota Tourism with a quarterly report of comparisons of quarterly sales taxes collected under the Standard Industrial Classification System, or equivalent codes in the North America Industry Classification System, in the following areas: 

(1) SIC 70, lodging; 

(2) SIC 79, amusement and recreation; and 

(3) SIC 58, eating and drinking. 

275.29 ABSTRACTS TO COMMISSIONER OF REVENUE.
Not later than March 31, in each year, the county auditor shall make and transmit to the commissioner of revenue, in such form as may be prescribed by the commissioner of revenue, complete abstracts of the tax lists of the county, showing the number of acres of land assessed; its value, including the structures thereon; the value of town and city lots, including structures; the total value of all taxable personal property in the several assessment districts; the aggregate amount of all taxable property in the county, and the total amount of taxes levied therein for state, county, town, and all other purposes for that year. 

297I.25 INFORMATION RETURNS.Subd. 2.Firetown and police premium reports. 
To the extent required by section 69.021, each insurer shall file with the commissioner a Minnesota firetown premium report and Minnesota aid to police premium report.