1.1 	A bill for an act
1.2 	relating to the operation of state government; appropriating money for the 
1.3 	legislature, governor's office, state auditor, attorney general, secretary of state, 
1.4 	certain agencies, boards, councils, and retirement funds; changing provisions in 
1.5 	state government operations; establishing commissions and task forces; repealing 
1.6 	state aid to PERA General for MERF; establishing observances for veterans and 
1.7 	allies; requiring reports;amending Minnesota Statutes 2018, sections 3.855, 
1.8 	subdivision 2, by adding a subdivision; 3.97, subdivision 3a; 3.971, subdivision 
1.9 	9; 6.481, subdivisions 1, 3; 13.599, by adding a subdivision; 15A.083, subdivision 
1.10 	6a; 16A.103, subdivision 1a; 16A.11, subdivision 3; 16E.01, subdivision 1a; 
1.11 	16E.016; 16E.03, subdivisions 1, 2, by adding subdivisions; 16E.035; 16E.0466, 
1.12 	subdivision 1; 16E.05, subdivision 3; 16E.14, subdivision 3; 16E.18, subdivision 
1.13 	6; 43A.15, subdivision 14; 43A.191, subdivisions 2, 3; 179A.20, by adding a 
1.14 	subdivision; 196.05, subdivision 1; 240.01, by adding a subdivision; 240.02, 
1.15 	subdivisions 2, 6; 240.08, subdivision 5; 240.10; 240.12; 240.13, subdivision 5; 
1.16 	240.131, subdivision 7; 240.135; 240.16, subdivisions 1, 2; 240.18, subdivisions 
1.17 	2, 3; 240.22; 240.27; 240A.09; 326A.01, subdivision 2; 326A.04, subdivisions 4, 
1.18 	5; 326A.08, subdivisions 4, 5, by adding a subdivision; 326A.10; 349.12, 
1.19 	subdivision 2; 349.17, subdivision 6; 349.181, subdivision 5; 349.19, subdivisions 
1.20 	1, 2; 353.27, subdivision 3c; 645.071; Laws 2016, chapter 189, article 13, section 
1.21 	64; Laws 2018, chapter 100, section 1; proposing coding for new law in Minnesota 
1.22 	Statutes, chapters 3; 5; 10; 14; 15; 16A; 16E; 326A; repealing Minnesota Statutes 
1.23 	2018, sections 3.9735; 353.505.
1.24 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.25 	ARTICLE 1
1.26 	STATE GOVERNMENT APPROPRIATIONS

1.27	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 	
1.28 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.29 	and for the purposes specified in this article. The appropriations are from the general fund, 
1.30 	or another named fund, and are available for the fiscal years indicated for each purpose. 
1.31 	The figures "2020" and "2021" used in this article mean that the appropriations listed under 
2.1 	them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. 
2.2 	"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" 
2.3 	is fiscal years 2020 and 2021.

2.4				APPROPRIATIONS
	
2.5				Available for the Year
	
2.6				Ending June 30
	
2.7					2020
		2021

2.8	Sec. 2. LEGISLATURE

2.9	Subdivision 1.Total Appropriation
 	$
	85,318,000
	$
	85,898,000
	
2.10 	The amounts that may be spent for each 
2.11 	purpose are specified in the following 
2.12 	subdivisions.

2.13	Subd. 2.Senate
 		35,260,000
		35,260,000

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

2.15	Subd. 4.Legislative Coordinating Commission
 		17,675,000
		18,255,000
	
2.16 	Appropriations provided by this subdivision 
2.17 	may be used for designated staff to support 
2.18 	the following offices and commissions: Office 
2.19 	of the Legislative Auditor; Office of the 
2.20 	Revisor of Statutes; Legislative Reference 
2.21 	Library; Geographic Information Services; 
2.22 	Legislative Budget Office; Legislative-Citizen 
2.23 	Commission on Minnesota Resources; 
2.24 	Legislative Commission on Pensions and 
2.25 	Retirement; Legislative Water Commission; 
2.26 	Mississippi River Parkway Commission; 
2.27 	Legislative Energy Commission; and the 
2.28 	Lessard-Sams Outdoor Heritage Council. The 
2.29 	operation of all other joint offices and 
2.30 	commissions must be supported by the central 
2.31 	administrative staff of the Legislative 
2.32 	Coordinating Commission. This appropriation 
2.33 	may additionally be used for central 
2.34 	administrative staff to support the work of the 
3.1 	Economic Status of Women Advisory 
3.2 	Committee.
3.3 	The base for the Legislative Coordinating 
3.4 	Commission is $18,291,000 in fiscal year 2022 
3.5 	and $18,326,000 in fiscal year 2023.
3.6 	From its funds, $10,000 each year is for 
3.7 	purposes of the legislators' forum, through 
3.8 	which Minnesota legislators meet with 
3.9 	counterparts from South Dakota, North 
3.10 	Dakota, and Manitoba to discuss issues of 
3.11 	mutual concern.
3.12 	From its funds, $904,000 the first year and 
3.13 	$1,483,000 the second year are for the 
3.14 	Legislative Budget Office. The base for the 
3.15 	Legislative Budget Office is $1,519,000 in 
3.16 	fiscal year 2022 and $1,554,000 in fiscal year 
3.17 	2023.
3.18 	Legislative Auditor. $6,564,000 the first year 
3.19 	and $6,564,000 the second year are for the 
3.20 	Office of the Legislative Auditor.
3.21 	Revisor of Statutes. $6,175,000 the first year 
3.22 	and $6,176,000 the second year are for the 
3.23 	Office of the Revisor of Statutes.
3.24 	Legislative Reference Library. $1,445,000 
3.25 	the first year and $1,445,000 the second year 
3.26 	are for the Legislative Reference Library.

3.27
3.28	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	3,622,000
	$
	3,622,000
	
3.29 	(a) This appropriation is to fund the Office of 
3.30 	the Governor and Lieutenant Governor.
3.31 	(b) $19,000 the first year and $19,000 the 
3.32 	second year are for necessary expenses in the 
3.33 	normal performance of the governor's and 
4.1 	lieutenant governor's duties for which no other 
4.2 	reimbursement is provided.
4.3 	(c) By September 1 of each year, the 
4.4 	commissioner of management and budget shall 
4.5 	report to the chairs and ranking minority 
4.6 	members of the legislative committees with 
4.7 	jurisdiction over state government finance any 
4.8 	personnel costs incurred by the Offices of the 
4.9 	Governor and Lieutenant Governor that were 
4.10 	supported by appropriations to other agencies 
4.11 	during the previous fiscal year. The Office of 
4.12 	the Governor shall inform the chairs and 
4.13 	ranking minority members of the committees 
4.14 	before initiating any interagency agreements.

4.15	Sec. 4. STATE AUDITOR
 	$
	9,573,000
	$
	9,573,000

4.16	Sec. 5. ATTORNEY GENERAL
 	$
	24,035,000
	$
	24,434,000

4.17	Appropriations by Fund
	
4.18		2020
	2021
	
4.19	General
	21,230,000
	21,629,000
	
4.20
4.21	State Government 
Special Revenue
	2,410,000
	2,410,000
	
4.22	Environmental
	145,000
	145,000
	
4.23	Remediation
	250,000
	250,000
	
4.24 	$1,252,000 in fiscal year 2020 and $1,651,000 
4.25 	in fiscal year 2021 are to provide legal services 
4.26 	to rural county attorneys.

4.27	Sec. 6. SECRETARY OF STATE
 	$
	19,321,000
	$
	6,321,000
	
4.28 	Of these amounts, $13,000,000 the first year 
4.29 	is for election equipment grants under 
4.30 	Minnesota Statutes, section 206.95. This is a 
4.31 	onetime appropriation and is available until 
4.32 	June 30, 2022.

4.33
4.34	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	1,048,000
	$
	1,048,000

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

5.2	Sec. 9. ADMINISTRATIVE HEARINGS
 	$
	8,231,000
	$
	8,231,000

5.3	Appropriations by Fund
	
5.4		2020
	2021
	
5.5	General
	400,000
	400,000
	
5.6
5.7	Workers' 
Compensation
	7,831,000
	7,831,000
	
5.8 	$263,000 the first year and $263,000 the 
5.9 	second year are for municipal boundary 
5.10 	adjustments.

5.11	Sec. 10. OFFICE OF MN.IT SERVICES
 	$
	15,329,000
	$
	10,526,000
	
5.12 	(a) The base for this appropriation in fiscal 
5.13 	year 2022 and later is $9,026,000.
5.14 	(b) $12,650,000 the first year and $7,847,000 
5.15 	the second year are for enhancements to 
5.16 	cybersecurity across state government. The 
5.17 	base for this appropriation in fiscal years 2022 
5.18 	and 2023 is $7,347,000 each year.
5.19 	(c) The commissioner of management and 
5.20 	budget is authorized to provide cash flow 
5.21 	assistance of up to $50,000,000 from the 
5.22 	special revenue fund or other statutory general 
5.23 	funds as defined in Minnesota Statutes, section 
5.24 	16A.671, subdivision 3, paragraph (a), to the 
5.25 	Office of MN.IT Services for the purpose of 
5.26 	managing revenue and expenditure 
5.27 	differences. These funds shall be repaid with 
5.28 	interest by the end of the fiscal year 2021 
5.29 	closing period.
5.30 	(d) During the biennium ending June 30, 2021, 
5.31 	MN.IT Services must not charge fees to a 
5.32 	public noncommercial educational television 
5.33 	broadcast station eligible for funding under 
5.34 	Minnesota Statutes, chapter 129D, for access 
6.1 	to the state broadcast infrastructure. If the 
6.2 	access fees not charged to public 
6.3 	noncommercial educational television 
6.4 	broadcast stations total more than $400,000 
6.5 	for the biennium, the office may charge for 
6.6 	access fees in excess of these amounts.

6.7	Sec. 11. ADMINISTRATION

6.8	Subdivision 1.Total Appropriation
 	$
	23,703,000
	$
	23,703,000
	
6.9 	The amounts that may be spent for each 
6.10 	purpose are specified in the following 
6.11 	subdivisions.

6.12	Subd. 2.Government and Citizen Services
 		8,781,000
		8,781,000
	
6.13 	$222,000 the first year and $222,000 the 
6.14 	second year are for the Council on 
6.15 	Developmental Disabilities.

6.16	Subd. 3.Strategic Management Services
 		2,587,000
		2,587,000

6.17	Subd. 4.Fiscal Agent
 		12,335,000
		12,335,000
	
6.18 	The appropriations under this section are to 
6.19 	the commissioner of administration for the 
6.20 	purposes specified.
6.21 	In-Lieu of Rent. $9,391,000 the first year and 
6.22 	$9,391,000 the second year are for space costs 
6.23 	of the legislature and veterans organizations, 
6.24 	ceremonial space, and statutorily free space.
6.25 	Public Television. (a) $1,550,000 the first 
6.26 	year and $1,550,000 the second year are for 
6.27 	matching grants for public television.
6.28 	(b) $250,000 the first year and $250,000 the 
6.29 	second year are for public television 
6.30 	equipment grants under Minnesota Statutes, 
6.31 	section 129D.13.
7.1 	(c) The commissioner of administration must 
7.2 	consider the recommendations of the 
7.3 	Minnesota Public Television Association 
7.4 	before allocating the amounts appropriated in 
7.5 	paragraphs (a) and (b) for equipment or 
7.6 	matching grants.
7.7 	Public Radio. (a) $492,000 the first year and 
7.8 	$492,000 the second year are for community 
7.9 	service grants to public educational radio 
7.10 	stations. This appropriation may be used to 
7.11 	disseminate emergency information in foreign 
7.12 	languages.
7.13 	(b) $142,000 the first year and $142,000 the 
7.14 	second year are for equipment grants to public 
7.15 	educational radio stations. This appropriation 
7.16 	may be used for the repair, rental, and 
7.17 	purchase of equipment including equipment 
7.18 	under $500.
7.19 	(c) $510,000 the first year and $510,000 the 
7.20 	second year are for equipment grants to 
7.21 	Minnesota Public Radio, Inc., including 
7.22 	upgrades to Minnesota's Emergency Alert and 
7.23 	AMBER Alert Systems.
7.24 	(d) The appropriations in paragraphs (a) to (c) 
7.25 	may not be used for indirect costs claimed by 
7.26 	an institution or governing body.
7.27 	(e) The commissioner of administration must 
7.28 	consider the recommendations of the 
7.29 	Association of Minnesota Public Educational 
7.30 	Radio Stations before awarding grants under 
7.31 	Minnesota Statutes, section 129D.14, using 
7.32 	the appropriations in paragraphs (a) and (b). 
7.33 	No grantee is eligible for a grant unless they 
7.34 	are a member of the Association of Minnesota 
8.1 	Public Educational Radio Stations on or before 
8.2 	July 1, 2017.
8.3 	(f) Any unencumbered balance remaining the 
8.4 	first year for grants to public television or 
8.5 	public radio stations does not cancel and is 
8.6 	available for the second year.

8.7
8.8	Sec. 12. CAPITOL AREA ARCHITECTURAL 
AND PLANNING BOARD
 	$
	351,000
	$
	351,000

8.98.10
	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	23,267,000
	$
	23,126,000
	
8.11 	(a) None of this appropriation may be used 
8.12 	for enterprise communication and planning 
8.13 	activities.
8.14 	(b) Of these funds, $141,000 the first year is 
8.15 	to pay to Becker County and to Wright County 
8.16 	the amount each county demonstrates to the 
8.17 	commissioner of management and budget that 
8.18 	it spent on legal fees, including costs and 
8.19 	disbursements, to defend the lawsuit brought 
8.20 	by former state auditor, Rebecca Otto, against 
8.21 	Wright, Becker, and Ramsey Counties, Otto 
8.22 	v. Wright County, Becker County, and 
8.23 	Ramsey County, Minnesota District Court, 
8.24 	Second Judicial District, Court File No. 
8.25 	62-CV-16-606, and all appeals from that suit.

8.26	Sec. 14. REVENUE

8.27	Subdivision 1.Total Appropriation
 	$
	148,721,000
	$
	148,721,000

8.28	Appropriations by Fund
	
8.29		2020
	2021
	
8.30	General
	145,461,000
	145,461,000
	
8.31	Health Care Access
	760,000
	760,000
	
8.32
8.33	Highway User Tax 
Distribution
	2,195,000
	2,195,000
	
8.34	Environmental
	305,000
	305,000

8.35	Subd. 2.Tax System Management
 		122,582,000
		122,582,000

9.1	Appropriations by Fund
	
9.2	General
	119,322,000
	119,322,000
	
9.3	Health Care Access
	760,000
	760,000
	
9.4
9.5	Highway User Tax 
Distribution
	2,195,000
	2,195,000
	
9.6	Environmental
	305,000
	305,000
	
9.7 	Appropriation; Taxpayer Assistance. (a) 
9.8 	$400,000 each year is for the commissioner 
9.9 	of revenue to make grants to one or more 
9.10 	nonprofit organizations, qualifying under 
9.11 	section 501(c)(3) of the Internal Revenue Code 
9.12 	of 1986, to coordinate, facilitate, encourage, 
9.13 	and aid in the provision of taxpayer assistance 
9.14 	services. The unencumbered balance in the 
9.15 	first year does not cancel but is available for 
9.16 	the second year.
9.17 	(b) For purposes of this section, "taxpayer 
9.18 	assistance services" means accounting and tax 
9.19 	preparation services provided by volunteers 
9.20 	to low-income, elderly, and disadvantaged 
9.21 	Minnesota residents to help them file federal 
9.22 	and state income tax returns and Minnesota 
9.23 	property tax refund claims and to provide 
9.24 	personal representation before the Department 
9.25 	of Revenue and Internal Revenue Service.

9.26	Subd. 3.Debt Collection Management
 		26,139,000
		26,139,000

9.27	Sec. 15. GAMBLING CONTROL
 	$
	3,472,000
	$
	3,472,000
	
9.28 	These appropriations are from the lawful 
9.29 	gambling regulation account in the special 
9.30 	revenue fund.

9.31	Sec. 16. RACING COMMISSION
 	$
	913,000
	$
	913,000
	
9.32 	These appropriations are from the racing and 
9.33 	card playing regulation accounts in the special 
9.34 	revenue fund.

10.1	Sec. 17. STATE LOTTERY
 					
10.2 	Notwithstanding Minnesota Statutes, section 
10.3 	349A.10, subdivision 3, the State Lottery's 
10.4 	operating budget must not exceed $35,000,000 
10.5 	in fiscal year 2020 and $36,500,000 in fiscal 
10.6 	year 2021.

10.7	Sec. 18. AMATEUR SPORTS COMMISSION
 	$
	2,306,000
	$
	2,306,000
	
10.8 	$2,000,000 each year is to make grants under 
10.9 	Minnesota Statutes, section 240A.09, 
10.10 	paragraph (b).

10.11
10.12	Sec. 19. COUNCIL FOR MINNESOTANS OF 
AFRICAN HERITAGE
 	$
	407,000
	$
	407,000

10.13	Sec. 20. COUNCIL ON LATINO AFFAIRS
 	$
	495,000
	$
	495,000

10.14
10.15	Sec. 21. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	465,000
	$
	465,000

10.16	Sec. 22. INDIAN AFFAIRS COUNCIL
 	$
	586,000
	$
	586,000

10.17
10.18	Sec. 23. MINNESOTA HISTORICAL 
SOCIETY

10.19	Subdivision 1.Total Appropriation
 	$
	19,129,000
	$
	19,129,000
	
10.20 	The amounts that may be spent for each 
10.21 	purpose are specified in the following 
10.22 	subdivisions.

10.23	Subd. 2.Operations and Programs
 		18,497,000
		18,497,000
	
10.24 	Notwithstanding Minnesota Statutes, section 
10.25 	138.668, the Minnesota Historical Society may 
10.26 	not charge a fee for its general tours at the 
10.27 	Capitol, but may charge fees for special 
10.28 	programs other than general tours.

10.29	Subd. 3.Fiscal Agent

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

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

10.32	(c) Farmamerica
		115,000
		115,000

11.1	(d) Minnesota Military Museum
		400,000
		400,000
	
11.2 	$350,000 each year is to:
11.3 	(1) expand collections network, library and 
11.4 	museum interpretation, and existing school 
11.5 	and community-based programming related 
11.6 	to Minnesota military history;
11.7 	(2) create and conduct a statewide 
11.8 	story-sharing program to honor the distinct 
11.9 	service of post 9/11 veterans in anticipation 
11.10 	of the 2021 anniversary; and
11.11 	(3) care for, catalog, and display the recently 
11.12 	acquired collection of the personal and 
11.13 	professional effects belonging to General John 
11.14 	W. Vessey, Minnesota's most decorated 
11.15 	veteran.
11.16 	Balances Forward. Any unencumbered 
11.17 	balance of an appropriation in this subdivision 
11.18 	remaining at the end of the first year does not 
11.19 	cancel but is available in the second year.

11.20	Sec. 24. BOARD OF THE ARTS

11.21	Subdivision 1.Total Appropriation
 	$
	7,541,000
	$
	7,541,000
	
11.22 	The amounts that may be spent for each 
11.23 	purpose are specified in the following 
11.24 	subdivisions.

11.25	Subd. 2.Operations and Services
 		602,000
		602,000

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

11.27	Subd. 4.Regional Arts Councils
 		2,139,000
		2,139,000
	
11.28 	Any unencumbered balance of an 
11.29 	appropriation in this subdivision remaining at 
11.30 	the end of the first year does not cancel but is 
11.31 	available in the second year.
12.1 	Money appropriated in this section and 
12.2 	distributed as grants may only be spent on 
12.3 	projects located in Minnesota. A recipient of 
12.4 	a grant funded by an appropriation in this 
12.5 	section must not use more than ten percent of 
12.6 	the total grant for costs related to travel outside 
12.7 	the state of Minnesota.

12.8
12.9	Sec. 25. MINNESOTA HUMANITIES 
CENTER
 	$
	988,000
	$
	988,000
	
12.10 	$650,000 each year is for the Healthy Eating, 
12.11 	Here at Home program under Minnesota 
12.12 	Statutes, section 138.912. No more than three 
12.13 	percent of the appropriation may be used for 
12.14 	the nonprofit administration of this program.

12.15	Sec. 26. BOARD OF ACCOUNTANCY
 	$
	643,000
	$
	643,000

12.16
12.17
12.18
12.19	Sec. 27. BOARD OF ARCHITECTURE 
ENGINEERING, LAND SURVEYING, 
LANDSCAPE ARCHITECTURE, 
GEOSCIENCE, AND INTERIOR DESIGN
 	$
	806,000
	$
	806,000

12.20
12.21	Sec. 28. BOARD OF COSMETOLOGIST 
EXAMINERS
 	$
	2,514,000
	$
	2,514,000

12.22	Sec. 29. BOARD OF BARBER EXAMINERS
 	$
	343,000
	$
	343,000

12.23
12.24	Sec. 30. GENERAL CONTINGENT 
ACCOUNTS
 	$
	1,000,000
	$
	500,000

12.25	Appropriations by Fund
	
12.26		2020
	2021
	
12.27	General
	500,000
	-0-
	
12.28
12.29	State Government 
Special Revenue
	400,000
	400,000
	
12.30
12.31	Workers' 
Compensation
	100,000
	100,000
	
12.32 	(a) The appropriations in this section may only 
12.33 	be spent with the approval of the governor 
12.34 	after consultation with the Legislative 
12.35 	Advisory Commission pursuant to Minnesota 
12.36 	Statutes, section 3.30.
13.1 	(b) If an appropriation in this section for either 
13.2 	year is insufficient, the appropriation for the 
13.3 	other year is available for it.
13.4 	(c) If a contingent account appropriation is 
13.5 	made in one fiscal year, it should be 
13.6 	considered a biennial appropriation.

13.7	Sec. 31. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
13.8 	These appropriations are to be spent by the 
13.9 	commissioner of management and budget 
13.10 	according to Minnesota Statutes, section 
13.11 	3.736, subdivision 7. If the appropriation for 
13.12 	either year is insufficient, the appropriation 
13.13 	for the other year is available for it.

13.14
13.15	Sec. 32. MINNESOTA STATE RETIREMENT 
SYSTEM

13.16	Subdivision 1.Total Appropriation
 	$
	15,111,000
	$
	15,151,000
	
13.17 	The amounts that may be spent for each 
13.18 	purpose are specified in the following 
13.19 	subdivisions.

13.20
13.21	Subd. 2.Combined Legislators and 
Constitutional Officers Retirement Plan
 		9,111,000
		9,151,000
	
13.22 	Under Minnesota Statutes, sections 3A.03, 
13.23 	subdivision 2; 3A.04, subdivisions 3 and 4; 
13.24 	and 3A.115.
13.25 	If an appropriation in this section for either 
13.26 	year is insufficient, the appropriation for the 
13.27 	other year is available for it.

13.28	Subd. 3.Judges Retirement Plan
 		6,000,000
		6,000,000
	
13.29 	For transfer to the judges retirement fund 
13.30 	under Minnesota Statutes, section 490.123. 
13.31 	This transfer continues each fiscal year until 
13.32 	the judges retirement plan reaches 100 percent 
13.33 	funding as determined by an actuarial 
14.1 	valuation prepared according to Minnesota 
14.2 	Statutes, section 356.214.

14.3
14.4	Sec. 33. PUBLIC EMPLOYEES RETIREMENT 
ASSOCIATION
 	$
	4,500,000
	$
	9,000,000
	
14.5 	These amounts are for direct state aid to the 
14.6 	public employees police and fire retirement 
14.7 	plan authorized under Minnesota Statutes, 
14.8 	section 353.65, subdivision 3b.

14.914.10
	Sec. 34. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	29,831,000
	$
	29,831,000
	
14.11 	The amounts estimated to be needed are as 
14.12 	follows:
14.13 	Special Direct State Aid. $27,331,000 each 
14.14 	year is for special direct state aid authorized 
14.15 	under Minnesota Statutes, section 354.436.
14.16 	Special Direct State Matching Aid.
14.17 	$2,500,000 each year is for special direct state 
14.18 	matching aid authorized under Minnesota 
14.19 	Statutes, section 354.435.

14.20
14.21	Sec. 35. ST. PAUL TEACHERS RETIREMENT 
FUND
 	$
	14,827,000
	$
	14,827,000
	
14.22 	The amounts estimated to be needed for 
14.23 	special direct state aid to the first class city 
14.24 	teachers retirement fund association authorized 
14.25 	under Minnesota Statutes, section 354A.12, 
14.26 	subdivisions 3a and 3c.

14.27	Sec. 36. MILITARY AFFAIRS

14.28	Subdivision 1.Total Appropriation
 	$
	22,989,000
	$
	23,439,000
	
14.29 	The amounts that may be spent for each 
14.30 	purpose are specified in the following 
14.31 	subdivisions.

14.32	Subd. 2.Maintenance of Training Facilities
 		9,701,000
		9,701,000

14.33	Subd. 3.General Support
 		3,124,000
		3,124,000

15.1	Subd. 4.Enlistment Incentives
 		10,114,000
		10,614,000
	
15.2 	The appropriations in this subdivision are 
15.3 	available until June 30, 2023, except that any 
15.4 	unspent amounts allocated to a program 
15.5 	otherwise supported by this appropriation are 
15.6 	canceled to the general fund upon receipt of 
15.7 	federal funds in the same amount to support 
15.8 	administration of that program.
15.9 	If appropriations for either year of the 
15.10 	biennium are insufficient, the appropriation 
15.11 	from the other year is available.
15.12 	The base for this appropriation in fiscal year 
15.13 	2022 and later is $11,114,000.

15.14	Subd. 5.Transfer
 		50,000
		-0-
	
15.15 	$50,000 in fiscal year 2020 is for transfer to 
15.16 	the Support Our Troops account for grants to 
15.17 	one or more eligible foundations for the 
15.18 	purpose of making grants to eligible 
15.19 	individuals as specified under Minnesota 
15.20 	Statutes, section 190.19, subdivision 2, 
15.21 	paragraph (a), clause (2). The amount 
15.22 	transferred is available until June 30, 2021.

15.23	Sec. 37. VETERANS AFFAIRS

15.24	Subdivision 1.Total Appropriation
 	$
	76,723,000
	$
	75,423,000
	
15.25 	The amounts that may be spent for each 
15.26 	purpose are specified in the following 
15.27 	subdivisions.

15.28	Subd. 2.Veterans Programs and Services
 		18,912,000
		17,662,000
	
15.29 	(a) CORE Program. $1,500,000 in fiscal year 
15.30 	2020 and $500,000 in fiscal year 2021 are for 
15.31 	the Counseling and Case Management 
15.32 	Outreach Referral and Education (CORE) 
15.33 	program.
16.1 	(b) Veterans Service Organizations.
16.2 	$353,000 each year is for grants to the 
16.3 	following congressionally chartered veterans 
16.4 	service organizations as designated by the 
16.5 	commissioner: Disabled American Veterans, 
16.6 	Military Order of the Purple Heart, the 
16.7 	American Legion, Veterans of Foreign Wars, 
16.8 	Vietnam Veterans of America, AMVETS, and 
16.9 	Paralyzed Veterans of America. This funding 
16.10 	must be allocated in direct proportion to the 
16.11 	funding currently being provided by the 
16.12 	commissioner to these organizations.
16.13 	(c) Minnesota Assistance Council for 
16.14 	Veterans. $750,000 each year is for a grant 
16.15 	to the Minnesota Assistance Council for 
16.16 	Veterans to provide assistance throughout 
16.17 	Minnesota to veterans and their families who 
16.18 	are homeless or in danger of homelessness, 
16.19 	including assistance with the following:
16.20 	(1) utilities;
16.21 	(2) employment; and
16.22 	(3) legal issues.
16.23 	The assistance authorized under this paragraph 
16.24 	must be made only to veterans who have 
16.25 	resided in Minnesota for 30 days prior to 
16.26 	application for assistance and according to 
16.27 	other guidelines established by the 
16.28 	commissioner. In order to avoid duplication 
16.29 	of services, the commissioner must ensure that 
16.30 	this assistance is coordinated with all other 
16.31 	available programs for veterans.
16.32 	(d) State's Veterans Cemeteries. $1,647,000 
16.33 	in the first year and $1,672,000 in the second 
16.34 	year are for the state's veterans cemeteries.
17.1 	(e) Honor Guards. $200,000 each year is for 
17.2 	compensation for honor guards at the funerals 
17.3 	of veterans under Minnesota Statutes, section 
17.4 	197.231.
17.5 	(f) Minnesota GI Bill. $200,000 each year is 
17.6 	for the costs of administering the Minnesota 
17.7 	GI Bill postsecondary educational benefits, 
17.8 	on-the-job training, and apprenticeship 
17.9 	program under Minnesota Statutes, section 
17.10 	197.791.
17.11 	(g) Gold Star Program. $100,000 each year 
17.12 	is for administering the Gold Star Program for 
17.13 	surviving family members of deceased 
17.14 	veterans.
17.15 	(h) County Veterans Service Office.
17.16 	$1,100,000 each year is for funding the 
17.17 	County Veterans Service Office grant program 
17.18 	under Minnesota Statutes, section 197.608.
17.19 	(i) Armed Forces Service Center. $100,000 
17.20 	in the first year is for a onetime grant to the 
17.21 	Armed Forces Service Center at the 
17.22 	Minneapolis-St. Paul Airport for construction 
17.23 	costs related to the remodeling of the Armed 
17.24 	Forces Service Center and for refurbishing the 
17.25 	center's furniture and beds used by service 
17.26 	members between connecting flights and while 
17.27 	awaiting ground transportation when traveling 
17.28 	individually or by unit to and from military 
17.29 	duty assignments.
17.30 	As a condition of issuing this grant, the 
17.31 	commissioner must ensure that the center 
17.32 	provides matching funding for this purpose. 
17.33 	The commissioner must also ensure that no 
17.34 	part of this grant may be spent for salary or 
18.1 	related benefits for any person or for the 
18.2 	operations of the center.
18.3 	(j) Medal of Honor Memorial. $150,000 in 
18.4 	the second year is for deposit in the Medal of 
18.5 	Honor Memorial account established under 
18.6 	Laws 2016, chapter 189, article 13, section 
18.7 	64, subdivision 2. The commissioner shall use 
18.8 	the amount transferred under this section to 
18.9 	construct the Medal of Honor Commemorative 
18.10 	Memorial. This transfer is not available until 
18.11 	the commissioner of management and budget 
18.12 	determines that an equal amount is committed 
18.13 	from other nonstate sources. This is a onetime 
18.14 	appropriation.

18.15	Subd. 3.Veterans Health Care
 		57,761,000
		57,761,000
	
18.16 	(a) Transfers. These appropriations may be 
18.17 	transferred to a veterans homes special 
18.18 	revenue account in the special revenue fund 
18.19 	in the same manner as other receipts are 
18.20 	deposited according to Minnesota Statutes, 
18.21 	section 198.34, and are appropriated to the 
18.22 	commissioner of veterans affairs for the 
18.23 	operation of veterans homes facilities and 
18.24 	programs.
18.25 	(b) Report. No later than January 15, 2020, 
18.26 	the commissioner must submit a report to the 
18.27 	legislative committees with jurisdiction over 
18.28 	veterans affairs and state government finance 
18.29 	on reserve amounts maintained in the veterans 
18.30 	homes special revenue account. The report 
18.31 	must detail current and historical amounts 
18.32 	maintained as a reserve, and uses of those 
18.33 	amounts. The report must also include data on 
18.34 	the utilization of existing veterans homes, 
18.35 	including current and historical bed capacity 
19.1 	and usage, staffing levels and staff vacancy 
19.2 	rates, and staff-to-resident ratios.
19.3 	(c) Maximize Federal Reimbursements. The 
19.4 	department shall seek opportunities to 
19.5 	maximize federal reimbursements of 
19.6 	Medicare-eligible expenses and provide annual 
19.7 	reports to the commissioner of management 
19.8 	and budget on the federal Medicare 
19.9 	reimbursements received. Contingent upon 
19.10 	future federal Medicare receipts, reductions 
19.11 	to the homes' general fund appropriation may 
19.12 	be made.

19.13	Subd. 4.Transfer
 		50,000
		-0-
	
19.14 	$50,000 in fiscal year 2020 is for transfer to 
19.15 	the Support Our Troops account for providing 
19.16 	services and programs for veterans and their 
19.17 	families as specified in Minnesota Statutes, 
19.18 	section 190.19, subdivision 2a, paragraph (a), 
19.19 	clause (3), and for the agency's uncompensated 
19.20 	burial costs for eligible dependents to whom 
19.21 	the commissioner grants a no-fee or 
19.22 	reduced-fee burial in the state's veteran 
19.23 	cemeteries pursuant to Minnesota Statutes, 
19.24 	section 197.236, subdivision 9, paragraph (b), 
19.25 	as specified in Minnesota Statutes, section 
19.26 	190.19, subdivision 2a, paragraph (a), clause  
19.27 	(7). The amount transferred is available until 
19.28 	June 30, 2021.

19.29 	Sec. 38. Laws 2018, chapter 100, section 1, is amended to read:
19.30 	Section 1. SENATE; APPROPRIATION.
 19.31 	$32,299,000 in fiscal year 2018 and $32,105,000 $37,105,000 in fiscal year 2019 are 
19.32 	appropriated from the general fund to the senate.

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

20.1 	Sec. 39. CANCELLATIONS.
 20.2 	(a) All unspent funds, estimated to be $7,290,000, carried forward from a previous 
20.3 	biennium by the house of representatives under Minnesota Statutes, section 16A.281, are 
20.4 	canceled to the general fund by June 1, 2019.
20.5 	(b) All unencumbered funds, estimated to be $7,343,000, in the information and 
20.6 	telecommunications technology systems and services account established under Minnesota 
20.7 	Statutes, section 16E.21, are canceled to the general fund by June 1, 2019.
20.8 	(c) All unspent funds, estimated to be $350,000, to provide grants to the veterans Journey 
20.9 	Home program in fiscal year 2019 under Laws 2017, First Special Session chapter 4, article 
20.10 	1, section 38, subdivision 2, are canceled to the general fund by June 29, 2019.

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

20.12 	ARTICLE 2
20.13 	STATE GOVERNMENT OPERATIONS

20.14 	Section 1. Minnesota Statutes 2018, section 3.855, subdivision 2, is amended to read:
20.15 		Subd. 2.State employee negotiations. (a) The commissioner of management and budget 
20.16 	shall regularly advise the commission on the progress of collective bargaining activities 
20.17 	with state employees under the state Public Employment Labor Relations Act. During 
20.18 	negotiations, the commission may make recommendations to the commissioner as it deems 
20.19 	appropriate but no recommendation shall impose any obligation or grant any right or privilege 
20.20 	to the parties.
20.21 	(b) The commissioner shall submit to the chair of the commission any negotiated 
20.22 	collective bargaining agreements, arbitration awards, compensation plans, or salaries for 
20.23 	legislative approval or disapproval. Negotiated agreements shall be submitted within five 
20.24 	days of the date of approval by the commissioner or the date of approval by the affected 
20.25 	state employees, whichever occurs later. Arbitration awards shall be submitted within five 
20.26 	days of their receipt by the commissioner. If the commission disapproves a collective 
20.27 	bargaining agreement, award, compensation plan, or salary, the commission shall specify 
20.28 	in writing to the parties those portions with which it disagrees and its reasons. If the 
20.29 	commission approves a collective bargaining agreement, award, compensation plan, or 
20.30 	salary, it shall submit the matter to the legislature to be accepted or rejected under this 
20.31 	section.
21.1 	(c) When the legislature is not in session, the commission may give interim approval to 
21.2 	a negotiated collective bargaining agreement, salary, compensation plan, or arbitration 
21.3 	award. When the legislature is not in session, failure of the commission to disapprove a 
21.4 	collective bargaining agreement or arbitration award within 30 days constitutes approval.
21.5 	The commission shall submit the negotiated collective bargaining agreements, salaries, 
21.6 	compensation plans, or arbitration awards for which it has provided approval to the entire 
21.7 	legislature for ratification at a special legislative session called to consider them or at its 
21.8 	next regular legislative session as provided in this section. Approval or disapproval by the 
21.9 	commission is not binding on the legislature.
21.10 	(d) When the legislature is not in session, the proposed collective bargaining agreement, 
21.11 	arbitration decision, salary, or compensation plan must be implemented upon its approval 
21.12 	by the commission, and state employees covered by the proposed agreement or arbitration 
21.13 	decision do not have the right to strike while the interim approval is in effect. Wages and 
21.14 	economic fringe benefit increases provided for in the agreement or arbitration decision paid 
21.15 	in accordance with the interim approval by the commission are not affected, but the wages 
21.16 	or benefit increases must cease to be paid or provided effective upon the rejection of the 
21.17 	agreement, arbitration decision, salary, or compensation plan, or upon adjournment of the 
21.18 	legislature without acting on it.

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

21.20 	Sec. 2. Minnesota Statutes 2018, section 3.855, is amended by adding a subdivision to 
21.21 	read:
21.22 		Subd. 5.Information required. The commissioner of management and budget must 
21.23 	submit to the Legislative Coordinating Commission the following information with the 
21.24 	submission of a collective bargaining agreement or compensation plan under subdivisions 
21.25 	2 and 3:
21.26 	(1) for each agency and for each proposed agreement or plan, a comparison of biennial 
21.27 	compensation costs under the current agreement or plan to the projected biennial 
21.28 	compensation costs under the proposed agreement or plan, paid with funds appropriated 
21.29 	from the general fund;
21.30 	(2) for each agency and for each proposed agreement or plan, a comparison of biennial 
21.31 	compensation costs under the current agreement or plan to the projected biennial 
21.32 	compensation costs under the proposed agreement or plan, paid with funds appropriated 
21.33 	from each fund other than the general fund;
22.1 	(3) for each agency and for each proposed agreement or plan, an identification of the 
22.2 	amount of the additional biennial compensation costs that are attributable to salary and 
22.3 	wages and to the cost of nonsalary and nonwage benefits; and
22.4 	(4) for each agency, for clauses (1) to (3), the impact of the aggregate of all agreements 
22.5 	and plans being submitted to the commission.

22.6 	Sec. 3. [3.8845] LEGISLATIVE COMMISSION ON HOUSING AFFORDABILITY.
22.7 		Subdivision 1.Membership. (a) The Legislative Commission on Housing Affordability 
22.8 	consists of:
22.9 	(1) two senators appointed by the senate majority leader;
22.10 	(2) two senators appointed by the senate minority leader;
22.11 	(3) two representatives appointed by the speaker of the house; and
22.12 	(4) two representatives appointed by the minority leader of the house of representatives.
22.13 	(b) Each appointing authority must make appointments by January 31 of the regular 
22.14 	legislative session in the odd-numbered year.
22.15 		Subd. 2.Meetings. The ranking senator from the majority party appointed to the 
22.16 	commission must convene the first meeting of a biennium by February 15 in the 
22.17 	odd-numbered year.
22.18 		Subd. 3.Terms; vacancies. Members of the commission serve for terms beginning upon 
22.19 	appointment and ending at the beginning of the regular legislative session in the next 
22.20 	odd-numbered year. The appropriate appointing authority must fill a vacancy for a seat of 
22.21 	a current legislator for the remainder of the unexpired term.
22.22 		Subd. 4.Officers. The commission must elect a chair and may elect other officers as it 
22.23 	determines are necessary at the first meeting of the commission in an odd-numbered year. 
22.24 	The chair alternates between a member of the senate and a member of the house of 
22.25 	representatives at the start of the regular legislative session in each odd-numbered year.
22.26 		Subd. 5.Staff. The Legislative Coordinating Commission must provide administrative 
22.27 	and research assistance to the commission.
22.28 		Subd. 6.Duties. The commission shall:
22.29 	(1) define housing affordability and study issues relating to housing affordability and 
22.30 	the construction, preservation, and rehabilitation of owner-occupied and rental housing, 
23.1 	including subsidized housing, existing and future government regulations impacting housing 
23.2 	affordability, market forces impacting housing affordability, and access to homeownership;
23.3 	(2) review and provide the legislature with research and analysis of emerging issues  
23.4 	affecting housing affordability and homeownership access, including but not limited to 
23.5 	construction work force, innovation, building practices, and building material costs;
23.6 	(3) review and provide the legislature with research and analysis of policies to reduce 
23.7 	the homeownership equity gap; and
23.8 	(4) review and make recommendations on legislative and rulemaking proposals positively 
23.9 	impacting personal housing affordability, access to homeownership, and other related barriers 
23.10 	to homeownership, especially with regard to first-time homebuyers and economically 
23.11 	disadvantaged buyers and renters.
23.12 		Subd. 7.Expiration. This section expires June 30, 2023.

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

23.14 	Sec. 4. Minnesota Statutes 2018, section 3.97, subdivision 3a, is amended to read:
23.15 		Subd. 3a.Evaluation topics. (a) The commission shall periodically select topics for the 
23.16 	legislative auditor to evaluate. Topics may include any agency, program, or activity 
23.17 	established by law to achieve a state purpose, or any topic that affects the operation of state 
23.18 	government, but. The commission shall give primary consideration to topics that are likely, 
23.19 	upon examination, to produce recommendations for cost savings, increased productivity, 
23.20 	or the elimination of duplication among public agencies. The commission shall also give 
23.21 	consideration to programs and statutory provisions that authorize grants, tax incentives, and 
23.22 	other inducements for economic development. Legislators and legislative committees may 
23.23 	suggest topics for evaluation, but the legislative auditor shall only conduct evaluations 
23.24 	approved by the commission.
23.25 	(b) The commission is requested to direct the auditor, in response to a suggestion from 
23.26 	an individual legislator of an evaluation topic, to estimate the scope of the proposed 
23.27 	evaluation and the time required to complete it. The estimate must be reported to the legislator 
23.28 	who submitted the suggestion and to the commission. The commission must determine 
23.29 	within 60 days of receiving the estimate whether to proceed with the suggested evaluation 
23.30 	and must convey its decision to the legislator along with the reasons for its decision.

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

24.1 	Sec. 5. Minnesota Statutes 2018, section 3.971, subdivision 9, is amended to read:
24.2 		Subd. 9.Obligation to notify the legislative auditor. The chief executive, financial, 
24.3 	or information officers of an organization subject to audit under this section must promptly 
24.4 	notify the legislative auditor when the officer obtains information indicating that public 
24.5 	money or other public resources may have been used for an unlawful purpose, or when the 
24.6 	officer obtains information indicating that government data classified by chapter 13 as not 
24.7 	public may have been accessed or used unlawfully by or provided to a person without lawful 
24.8 	authorization. As necessary, the legislative auditor shall coordinate an investigation of the 
24.9 	allegation with appropriate law enforcement officials.

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

24.11 	Sec. 6. [5.50] EXECUTIVE ORDER LIST SERVE.
24.12 	The secretary of state shall maintain a list of e-mail addresses of people who have 
24.13 	requested to be notified when an executive order is filed with the secretary of state. The 
24.14 	secretary of state shall notify people on the list by e-mail within seven days of the filing of 
24.15 	an executive order.

24.16 	Sec. 7. Minnesota Statutes 2018, section 6.481, subdivision 1, is amended to read:
24.17 		Subdivision 1.Powers and duties. (a) All the powers and duties conferred and imposed 
24.18 	upon the state auditor shall be exercised and performed by the state auditor in respect to the 
24.19 	offices, institutions, public property, and improvements of several counties of the state. The 
24.20 	state auditor may visit, without previous notice, each county and examine all accounts and 
24.21 	records relating to the receipt and disbursement of the public funds and the custody of the 
24.22 	public funds and other property. The state auditor shall prescribe and install systems of 
24.23 	accounts and financial reports that shall be uniform, so far as practicable, for the same class 
24.24 	of offices.
24.25 	(b) As used in this section, "county" includes a special district consisting exclusively of 
24.26 	counties operating under a joint powers agreement under section 471.59.

24.27 	EFFECTIVE DATE. This section is effective the day following final enactment and 
24.28 	applies retroactively to audits and examinations covering fiscal year 2018 and thereafter.

24.29 	Sec. 8. Minnesota Statutes 2018, section 6.481, subdivision 3, is amended to read:
24.30 		Subd. 3.CPA firm audit. (a) A county audit performed by a CPA firm must meet the 
24.31 	standards and be in a form meeting recognized industry auditing standards. The state auditor 
25.1 	may require additional information from the CPA firm if the state auditor determines that 
25.2 	is in the public interest, but the state auditor must accept the audit unless the state auditor 
25.3 	determines the audit or its form does not meet recognized industry auditing standards. The 
25.4 	state auditor may make additional examinations as the auditor determines to be in the public 
25.5 	interest.
25.6 	(b) When the state auditor requires additional information from the CPA firm or makes 
25.7 	additional examinations that the state auditor determines to be in the public interest, the 
25.8 	state auditor must afford counties and CPA firms an opportunity to respond to potential 
25.9 	findings, conclusions, or questions as follows:
25.10 	(1) at least 30 days before beginning a review for work performed by a certified public 
25.11 	accountant firm licensed in chapter 326A, the state auditor must notify the county and CPA 
25.12 	firm that the state auditor will be conducting a review and must identify the type or scope 
25.13 	of review the state auditor will perform;
25.14 	(2) throughout the state auditor's review, the auditor shall allow the county and the CPA 
25.15 	firm at least 30 days to respond to any request by the auditor for documents or other 
25.16 	information;
25.17 	(3) at least 30 days before issuing a final report, the state auditor must provide the CPA 
25.18 	firm with a draft report of the state auditor's findings;
25.19 	(4) at least 20 days before issuing a final report, the state auditor must hold a formal exit 
25.20 	conference with the CPA firm to discuss the findings in the state auditor's draft report;
25.21 	(5) the state auditor shall make changes to the draft report if the state auditor determines 
25.22 	changes are warranted as a result of information provided by the CPA firm during the state 
25.23 	auditor's review; and
25.24 	(6) the state auditor's final report must include any written responses provided by the 
25.25 	CPA firm.

25.26 	Sec. 9. [10.584] MATERNAL MENTAL HEALTH AWARENESS MONTH.
25.27 	The month of May is designated as Maternal Mental Health Awareness Month in 
25.28 	recognition of the state's desire to recognize the prevalence of pregnancy and postpartum 
25.29 	mental health issues and educate the people of the state about identifying symptoms and 
25.30 	seeking treatment options. Up to one-third of mothers report having symptoms of pregnancy 
25.31 	and postpartum mood and anxiety disorders each year. Many more cases go unreported due 
25.32 	to misunderstanding. Pregnancy and postpartum mood disorders are widespread but treatable 
25.33 	illnesses. Left untreated, pregnancy and postpartum mood and anxiety disorders can lead 
26.1 	to negative effects on birth outcomes, infant development, and the well-being of mothers 
26.2 	and families. The state declares that in order to educate the public, the governor may promote 
26.3 	and encourage the observance of Maternal Mental Health Awareness Month.

26.4 	Sec. 10. Minnesota Statutes 2018, section 13.599, is amended by adding a subdivision to 
26.5 	read:
26.6 		Subd. 5.State Arts Board. Notwithstanding subdivision 3, responses submitted by a 
26.7 	grantee to the State Arts Board or to a regional arts council under chapter 129D become 
26.8 	public data at the public review meeting at which they are considered, except for trade secret 
26.9 	data as defined and classified in section 13.37.

26.10 	Sec. 11. [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR 
26.11 	REMODELING; LEGISLATIVE NOTICE AND REVIEW.
26.12 		Subdivision 1.Definition. As used in this section, "residential construction" means the 
26.13 	new construction or remodeling of any building subject to the Minnesota Residential Code.
26.14 		Subd. 2.Impact on housing cost; agency determination. An agency must determine 
26.15 	if implementation of a proposed rule, or any portion of a proposed rule, will, on average, 
26.16 	increase the cost of residential construction or remodeling by $1,000 or more per unit. The 
26.17 	agency must make this determination before the close of the hearing record. Upon request 
26.18 	of a party affected by the proposed rule, an administrative law judge must review and 
26.19 	approve or disapprove an agency's determination that any portion of a proposed rule will 
26.20 	increase the cost of a dwelling unit by $1,000 or more.
26.21 		Subd. 3.Notice to legislature; legislative approval. (a) If the agency determines that 
26.22 	the impact of a proposed rule meets or exceeds the cost threshold provided in subdivision 
26.23 	2, or if the administrative law judge separately confirms the cost of any portion of a rule 
26.24 	exceeds the cost threshold provided in subdivision 2, the agency must notify, in writing, 
26.25 	the chairs and ranking minority members of the policy committees of the house of 
26.26 	representatives and the senate with jurisdiction over the subject matter of the proposed rule 
26.27 	within ten days of the determination.
26.28 	(b) If a committee of either the house of representatives or senate with jurisdiction over 
26.29 	the subject matter of the proposed rule or a portion of a rule that meets or exceeds the 
26.30 	threshold in subdivision 2 votes to advise an agency that the rule should not be adopted as 
26.31 	proposed, the agency may not adopt the rule unless the rule is approved by a law enacted 
26.32 	after the vote of the committee. Section 14.126, subdivision 2, applies to a vote of a 
26.33 	committee under this subdivision.
27.1 		Subd. 4.Severability. If the agency or an administrative law judge determines that part 
27.2 	of a proposed rule meets or exceeds the threshold provided in subdivision 2, but that a 
27.3 	severable portion of the proposed rule does not meet or exceed that threshold, the agency 
27.4 	may proceed to adopt the severable portions of the proposed rule regardless of whether a 
27.5 	legislative committee has voted under subdivision 3 to advise an agency that the rule should 
27.6 	not be adopted as proposed.

27.7 	EFFECTIVE DATE. This section is effective August 1, 2019, and applies to 
27.8 	administrative rules proposed on or after that date.

27.9 	Sec. 12. Minnesota Statutes 2018, section 15A.083, subdivision 6a, is amended to read:
27.10 		Subd. 6a.Administrative law judge; salaries. The salary of the chief administrative 
27.11 	law judge is 98.52 percent of the salary of a chief district court judge. The salaries of the 
27.12 	assistant chief administrative law judge and administrative law judge supervisors are 93.60
27.13 	100 percent of the salary of a chief district court judge. The salary of an administrative law 
27.14 	judge employed by the Office of Administrative Hearings is 98.52 percent of the salary of 
27.15 	a district court judge as set under section 15A.082, subdivision 3.

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

27.17 	Sec. 13. Minnesota Statutes 2018, section 16A.103, subdivision 1a, is amended to read:
27.18 		Subd. 1a.Forecast parameters. (a) Except as provided in paragraph (b), the forecast 
27.19 	must assume the continuation of current laws and reasonable estimates of projected growth 
27.20 	in the national and state economies and affected populations. Revenue must be estimated 
27.21 	for all sources provided for in current law. Expenditures must be estimated for all obligations 
27.22 	imposed by law and those projected to occur as a result of variables outside the control of 
27.23 	the legislature. Expenditure estimates must not include an allowance for inflation.
27.24 	(b) Notwithstanding paragraph (a) and any appropriations established in law, all 
27.25 	expenditures for a department, institution, or agency of the executive branch estimated for 
27.26 	the November forecast must be zero if the scheduled year under section 16A.111, subdivision 
27.27 	3, for the department, institution, or agency coincides with the calendar year of the November 
27.28 	forecast. The forecasted expenditures in the February forecast must be zero for a department, 
27.29 	institution, or agency of the executive branch if they were zero in the preceding November 
27.30 	forecast as a result of the requirements of this paragraph. The commissioner shall not apply 
27.31 	this paragraph to forecasted expenditures for the current biennium, but shall apply the 
27.32 	requirements of this paragraph to the forecasted expenditures for the next two biennia.

28.1 	Sec. 14. Minnesota Statutes 2018, section 16A.11, subdivision 3, is amended to read:
28.2 		Subd. 3.Part two: detailed budget. (a) Part two of the budget, the detailed budget 
28.3 	estimates both of expenditures and revenues, must contain any statements on the financial 
28.4 	plan which the governor believes desirable or which may be required by the legislature. 
28.5 	The detailed estimates shall include the governor's budget arranged in tabular form.
28.6 	(b) Tables listing expenditures for the next biennium must show the appropriation base 
28.7 	for each year. The appropriation base is the amount appropriated for the second year of the 
28.8 	current biennium. The tables must separately show any adjustments to the base required by 
28.9 	current law or policies of the commissioner of management and budget. For forecasted 
28.10 	programs, the tables must also show the amount of the forecast adjustments, based on the 
28.11 	most recent forecast prepared by the commissioner of management and budget under section 
28.12 	16A.103. For all programs, the tables must show the amount of appropriation changes 
28.13 	recommended by the governor, after adjustments to the base and forecast adjustments, and 
28.14 	the total recommendation of the governor for that year.
28.15 	(c) The detailed estimates must include a separate line listing the total cost of professional 
28.16 	and technical service contracts for the prior biennium and the projected costs of those 
28.17 	contracts for the current and upcoming biennium. They must also include a summary of the 
28.18 	personnel employed by the agency, reflected as full-time equivalent positions.
28.19 	(d) The detailed estimates for internal service funds must include the number of full-time 
28.20 	equivalents by program; detail on any loans from the general fund, including dollar amounts 
28.21 	by program; proposed investments in technology or equipment of $100,000 or more; an 
28.22 	explanation of any operating losses or increases in retained earnings; and a history of the 
28.23 	rates that have been charged, with an explanation of any rate changes and the impact of the 
28.24 	rate changes on affected agencies.
28.25 	(e) Notwithstanding paragraph (b) and any appropriation established in law, for any 
28.26 	department, institution, or agency in the executive branch that is in a scheduled year under 
28.27 	section 16A.111, subdivision 3, in the year prior to the year in which part two of the budget 
28.28 	must be submitted, the appropriation base for any appropriation made to that department, 
28.29 	institution, or agency for the next two biennia must be zero. The commissioner must display 
28.30 	the appropriation base established under this paragraph in the tables and narrative of part 
28.31 	two of the budget.

29.1 	Sec. 15. [16A.111] ZERO-BASED BUDGETING.
29.2 		Subdivision 1.Zero-based budget. (a) By October 15, each department, institution, 
29.3 	and agency of the executive branch within a scheduled year must submit to the commissioner 
29.4 	a proposed detailed operating budget for the biennium beginning July 1 of the following 
29.5 	year using zero-based budgeting, including a zero-based budget plan. The commissioner 
29.6 	of management and budget shall provide technical assistance to enable each department, 
29.7 	institution, or agency to complete its proposed detailed operating budget as specified by the 
29.8 	commissioner of management and budget.
29.9 	(b) The commissioner of management and budget shall adopt policies and procedures 
29.10 	for each department, institution, and agency to implement the provisions of this section.
29.11 	(c) As used in this section, "zero-based budgeting" means a method of determining the 
29.12 	budget of a department, institution, or agency for which the budget of the department, 
29.13 	institution, or agency:
29.14 	(1) is deemed to be zero in the November forecast, the February forecast, and the 
29.15 	governor's budget recommendations that precede the establishment of a biennial budget; 
29.16 	and
29.17 	(2) has justified each proposed expenditure for the biennium covered by the budget as 
29.18 	if it were a new expenditure.
29.19 	(d) Each department, institution, and agency of the executive branch that is required to 
29.20 	prepare a detailed operating budget and a zero-based budget plan under this subdivision 
29.21 	must submit the detailed operating budget and zero-based budget plan to the legislature. 
29.22 	This information must be submitted to the legislature at the same time that part two of the 
29.23 	governor's budget is required to be submitted under section 16A.11, subdivision 3.
29.24 		Subd. 2.Zero-based budget plan. A zero-based budget plan includes the following 
29.25 	information:
29.26 	(1) a description of activities that comprise the agency, and a justification for the existence 
29.27 	of each activity by reference to statute or other legal authority;
29.28 	(2) for each activity, a quantitative estimate of any adverse impacts that could reasonably 
29.29 	be expected should the activity be discontinued, together with a full description of the 
29.30 	methods by which the adverse impact is estimated;
29.31 	(3) a list of quantifiable program outcomes that measure the efficiency and effectiveness 
29.32 	of each program;
30.1 	(4) for each activity, an itemized account of expenditures that would be required to 
30.2 	maintain the activity at the minimum level of service required by statutory authority, together 
30.3 	with a concise statement of the quantity and quality of services required at that minimum 
30.4 	level;
30.5 	(5) for each activity, an itemized account of expenditures required to maintain the quantity 
30.6 	and quality of services being provided and the number of personnel required to accomplish 
30.7 	each program; and
30.8 	(6) a ranking of all activities that shows the relative contribution of each activity to the 
30.9 	overall goals and purposes of the agency at current service levels.
30.10 		Subd. 3.Scheduled year. (a) The scheduled year is 2020 and every ten years thereafter 
30.11 	for the following agencies: Department of Administration, Department of Agriculture, 
30.12 	Department of Commerce, Department of Corrections, Department of Education, Department 
30.13 	of Human Rights, Department of Human Services, Department of Military Affairs, 
30.14 	Department of Natural Resources, Department of Transportation, Minnesota Racing 
30.15 	Commission, Office of Higher Education, and all advisory groups associated with these 
30.16 	agencies.
30.17 	(b) The scheduled year is 2022 and every ten years thereafter for the following agencies: 
30.18 	Council for Minnesotans of African Heritage, Department of Employment and Economic 
30.19 	Development, Department of Health, Department of Management and Budget, Department 
30.20 	of Public Safety, Gambling Control Board, Metropolitan Council, Minnesota Council on 
30.21 	Latino Affairs, Pollution Control Agency, Science Museum, the Minnesota State Academies, 
30.22 	University of Minnesota, and all advisory groups associated with these agencies.
30.23 	(c) The scheduled year is 2024 and every ten years thereafter for the following agencies: 
30.24 	Agriculture Utilization Research Institute, all health-related boards listed in section 214.01, 
30.25 	Council on Asian-Pacific Minnesotans, Department of Labor and Industry, Department of 
30.26 	Revenue, Explore Minnesota Tourism, Minnesota State Colleges and Universities, Minnesota 
30.27 	Indian Affairs Council, Peace Officer Standards and Training Board, Professional Educator 
30.28 	Licensing and Standards Board, the Minnesota Historical Society, the Perpich Center for 
30.29 	Arts Education, and all advisory groups associated with these agencies.
30.30 	(d) The scheduled year is 2026 and every ten years thereafter for the following agencies: 
30.31 	all non-health-related boards listed in section 214.01 except as otherwise provided in this 
30.32 	section, Arts Board, Board of Animal Health, Board of School Administrators, Board of 
30.33 	Soil and Water Resources, Department of Veterans Affairs, Emergency Medical Services 
30.34 	Regulatory Board, Mayo Medical School, Office of Administrative Hearings, Public Utilities 
31.1 	Commission, Uniform Laws Commission, Workers' Compensation Board, and all advisory 
31.2 	groups associated with these agencies.
31.3 	(e) The scheduled year is 2028 and every ten years thereafter for the following agencies: 
31.4 	Amateur Sports Commission, Capitol Area Architectural and Planning Board, Board of 
31.5 	Teaching, Bureau of Mediation Services, Campaign Finance and Public Disclosure Board, 
31.6 	Destination Medical Center, Higher Education Facilities Authority, Iron Range Resources 
31.7 	and Rehabilitation Board, Minnesota Conservation Corps, Minnesota Zoo, Private Detectives 
31.8 	Board, and all advisory groups associated with these agencies.

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

31.10 	Sec. 16. Minnesota Statutes 2018, section 43A.15, subdivision 14, is amended to read:
31.11 		Subd. 14.On-the-job demonstration process and appointment. (a) The commissioner 
31.12 	shall establish qualifying procedures for applicants whose disabilities are of such a severe 
31.13 	nature that the applicants are unable to demonstrate their abilities in the selection process
31.14 	with significant disabilities as defined in Minnesota Rules, part 3300.5010, subpart 18. The 
31.15 	qualifying procedures must consist of up to 700 hours on-the-job trial work experience for 
31.16 	which the disabled person has the option of being paid or unpaid. Up to three persons with 
31.17 	severe disabilities and their job coach may be allowed to demonstrate their job competence 
31.18 	as a unit through the on-the-job trial work experience selection procedure. This on-the-job 
31.19 	demonstration process must be limited to applicants for whom there is no reasonable 
31.20 	accommodation in the selection process.
31.21 	(b) Up to three persons with significant disabilities and their job coaches may be allowed 
31.22 	to demonstrate their job competence as a unit through the on-the-job trial work experience 
31.23 	selection procedure as defined in Minnesota Rules, part 3300.5010, subpart 18. This 
31.24 	on-the-job demonstration process must be limited to applicants for whom there is no 
31.25 	reasonable accommodation in the selection process.
31.26 	(c) The commissioner may authorize the probationary appointment of an applicant based 
31.27 	on the request of the appointing authority that documents that the applicant has successfully 
31.28 	demonstrated qualifications for the position through completion of an on-the-job trial work 
31.29 	experience. The implementation of this subdivision may not be deemed a violation of chapter 
31.30 	43A or 363A.

32.1 	Sec. 17. Minnesota Statutes 2018, section 43A.191, subdivision 2, is amended to read:
32.2 		Subd. 2.Agency affirmative action plans. (a) The head of each agency in the executive 
32.3 	branch shall prepare and implement an agency affirmative action plan consistent with this 
32.4 	section and rules issued under section 43A.04, subdivision 3.
32.5 	(b) The agency plan must include a plan for the provision of reasonable accommodation 
32.6 	in the hiring and promotion of qualified disabled persons. The reasonable accommodation 
32.7 	plan must consist of at least the following:
32.8 	(1) procedures for compliance with sections 16E.03, subdivision 9,363A.08 to 363A.19, 
32.9 	and 363A.28, subdivision 10, and, where appropriate, regulations implementing United 
32.10 	States Code, title 29, section 794, as amended through December 31, 1984, which is section 
32.11 	504 of the Rehabilitation Act of 1973, as amended and the Americans with Disabilities Act, 
32.12 	United States Code, title 42, sections 101 to 108, 201 to 231, 241 to 246, 401, 402, and 501 
32.13 	to 514;
32.14 	(2) methods and procedures for providing reasonable accommodation for disabled job 
32.15 	applicants, current employees, and employees seeking promotion; and
32.16 	(3) provisions for funding reasonable accommodations.;
32.17 	(4) a plan to ensure that any collective bargaining agreement between the state and 
32.18 	agency employees provides equal employment opportunity for job applicants with disabilities 
32.19 	and current employees with disabilities seeking promotion; and
32.20 	(5) the number of requests made, the number of requests approved, and the number of 
32.21 	requests reimbursed from the state accommodation account under section 16B.4805.
32.22 	(c) The agency plan must be prepared by the agency head with the assistance of the 
32.23 	agency affirmative action officer and the director of diversity and equal employment 
32.24 	opportunity. The agency may consult with the Council on Disability shall provide assistance 
32.25 	with the agency reasonable accommodation plan, vocational rehabilitation services, state 
32.26 	services for the blind, and other disability experts to review and make recommendations on 
32.27 	recruitment and retention of people with disabilities.
32.28 	(d) The agency plan must identify any positions in the agency that can be used for 
32.29 	supported employment as defined in section 268A.01, subdivision 13, of persons with severe 
32.30 	disabilities. The agency shall report this information to the commissioner. An agency that 
32.31 	hires more than one supported worker in the identified positions must receive recognition 
32.32 	for each supported worker toward meeting the agency's affirmative action goals and 
32.33 	objectives.
33.1 	(e) An agency affirmative action plan may not be implemented without the 
33.2 	commissioner's approval.

33.3 	Sec. 18. Minnesota Statutes 2018, section 43A.191, subdivision 3, is amended to read:
33.4 		Subd. 3.Audits; sanctions and incentives. (a) The commissioner shall annually audit 
33.5 	the record of each agency to determine the rate of compliance with affirmative action 
33.6 	requirements.
33.7 	(b) By March 1 of each odd-numbered year, the commissioner shall submit a report on 
33.8 	affirmative action progress of each agency and the state as a whole to the governor and to 
33.9 	the Finance Committee of the senate, the Ways and Means Committee of the house of 
33.10 	representatives, the Governmental Operations Committees of both houses of the legislature, 
33.11 	and the Legislative Coordinating Commission. The report must include noncompetitive 
33.12 	appointments made under section 43A.08, subdivision 2a, or 43A.15, subdivisions 3 to 7, 
33.13 	10, and 12, and cover each agency's rate of compliance with affirmative action requirements.
33.14 	(c) An agency that does not meet its hiring goals must justify its nonaffirmative action
33.15 	hires in competitive and noncompetitive appointments according to criteria issued by the 
33.16 	Department of Management and Budget. "Missed opportunity" includes failure to justify a 
33.17 	nonaffirmative action hire. An agency must have 25 percent or less missed opportunities 
33.18 	in competitive appointments and 25 percent or less missed opportunities in appointments 
33.19 	made under sections 43A.08, subdivisions 1, clauses (9), (11), and (16); and 2a; and 43A.15, 
33.20 	subdivisions 3, 10, 12, and 13. The criteria must include the number of applicants hired 
33.21 	through on-the-job trial work experience, the number of applicants who receive authorization 
33.22 	for a probationary period, and the number of applicants who are offered an appointment.
33.23 	In addition, an agency shall:
33.24 	(1) demonstrate a good faith effort to recruit protected group members by following an 
33.25 	active recruitment plan;
33.26 	(2) implement a coordinated retention plan; and
33.27 	(3) have an established complaint resolution procedure.
33.28 	(d) The commissioner shall develop reporting standards and procedures for measuring 
33.29 	compliance.
33.30 	(e) An agency is encouraged to develop other innovative ways to promote awareness, 
33.31 	acceptance, and appreciation for diversity and affirmative action. These innovations will 
33.32 	be considered when evaluating an agency's compliance with this section.
34.1 	(f) An agency not in compliance with affirmative action requirements of this section 
34.2 	must identify methods and programs to improve performance, to reallocate resources 
34.3 	internally in order to increase support for affirmative action programs, and to submit program 
34.4 	and resource reallocation proposals to the commissioner for approval. An agency must 
34.5 	submit these proposals within 120 days of being notified by the commissioner that it is out 
34.6 	of compliance with affirmative action requirements. The commissioner shall monitor 
34.7 	quarterly the affirmative action programs of an agency found to be out of compliance.
34.8 	(g) The commissioner shall establish a program to recognize an agency that has made 
34.9 	significant and measurable progress in implementing an affirmative action plan.
34.10 	(h) The commissioner must publish on the Minnesota Management and Budget website 
34.11 	summary data about all appointments including protected class status and job classification 
34.12 	of each.

34.13 	Sec. 19. Minnesota Statutes 2018, section 179A.20, is amended by adding a subdivision 
34.14 	to read:
34.15 		Subd. 2b.Limited by appropriation. The commissioner of management and budget 
34.16 	must not contract to pay more to employees of the state in compensation and benefits in 
34.17 	either year of the biennium than is permitted under the first spending plan submitted by July 
34.18 	31 in an odd-numbered year and approved by the commissioner under section 16A.14, 
34.19 	subdivisions 3 and 4.

34.20 	Sec. 20. Minnesota Statutes 2018, section 240A.09, is amended to read:
34.21 	240A.09 PLAN DEVELOPMENT; CRITERIA.
34.22 	The Minnesota Amateur Sports Commission shall develop a plan to promote the 
34.23 	development of proposals for new statewide public ice facilities including proposals for ice 
34.24 	centers and matching grants based on the criteria in this section.
34.25 	(a) For ice center proposals, the commission will give priority to proposals that come 
34.26 	from more than one local government unit. Institutions of higher education are not eligible 
34.27 	to receive a grant.
34.28 	(b) The commission must give priority to grant applications for indoor air quality 
34.29 	improvements and projects that eliminate R-22. For purposes of this section:
34.30 	(1) "indoor air quality improvements" means: (i) renovation or replacement of heating, 
34.31 	ventilating, and air conditioning systems in existing indoor ice arenas whose ice resurfacing 
34.32 	and ice edging equipment are not powered by electricity in order to reduce concentrations 
35.1 	of carbon monoxide and nitrogen dioxide; and (ii) acquisition of zero-emission ice resurfacing 
35.2 	and ice edging equipment. The new or renovated systems may include continuous electronic 
35.3 	air monitoring devices to automatically activate the ventilation systems when the 
35.4 	concentration of carbon monoxide or nitrogen dioxide reaches a predetermined level; and
35.5 	(2) "projects that eliminate R-22," means replacement of ice-making systems in existing 
35.6 	public facilities that use R-22 as a refrigerant, with systems that use alternative 
35.7 	non-ozone-depleting refrigerants.
35.8 	(c) In the metropolitan area as defined in section 473.121, subdivision 2, the commission 
35.9 	is encouraged to give priority to the following proposals:
35.10 	(1) proposals for construction of two or more ice sheets in a single new facility;
35.11 	(2) proposals for construction of an additional sheet of ice at an existing ice center;
35.12 	(3) proposals for construction of a new, single sheet of ice as part of a sports complex 
35.13 	with multiple sports facilities; and
35.14 	(4) proposals for construction of a new, single sheet of ice that will be expanded to a 
35.15 	two-sheet facility in the future.
35.16 	(d) The commission shall administer a site selection process for the ice centers. The 
35.17 	commission shall invite proposals from cities or counties or consortia of cities. A proposal 
35.18 	for an ice center must include matching contributions including in-kind contributions of 
35.19 	land, access roadways and access roadway improvements, and necessary utility services, 
35.20 	landscaping, and parking.
35.21 	(e) Proposals for ice centers and matching grants must provide for meeting the demand 
35.22 	for ice time for female groups by offering up to 50 percent of prime ice time, as needed, to 
35.23 	female groups. For purposes of this section, prime ice time means the hours of 4:00 p.m. 
35.24 	to 10:00 p.m. Monday to Friday and 9:00 a.m. to 8:00 p.m. on Saturdays and Sundays.
35.25 	(f) The location for all proposed facilities must be in areas of maximum demonstrated 
35.26 	interest and must maximize accessibility to an arterial highway.
35.27 	(g) To the extent possible, all proposed facilities must be dispersed equitably, must be 
35.28 	located to maximize potential for full utilization and profitable operation, and must 
35.29 	accommodate noncompetitive family and community skating for all ages.
35.30 	(h) The commission may also use the money to upgrade current facilities, purchase girls' 
35.31 	ice time, or conduct amateur women's hockey and other ice sport tournaments.
36.1 	(i) To the extent possible, 50 percent of all grants must be awarded to communities in 
36.2 	greater Minnesota.
36.3 	(j) To the extent possible, technical assistance shall be provided to Minnesota 
36.4 	communities by the commission on ice arena planning, design, and operation, including the 
36.5 	marketing of ice time and on projects described in paragraph (b).
36.6 	(k) A grant for new facilities may not exceed $250,000.
36.7 	(l) The commission may make grants for rehabilitation and renovation. A rehabilitation 
36.8 	or renovation grant for air quality may not exceed $200,000 and a rehabilitation or renovation 
36.9 	grant for R-22 elimination may not exceed $50,000 $250,000 for indirect cooling systems 
36.10 	and may not exceed $400,000 $500,000 for direct cooling systems. Priority must be given 
36.11 	to grant applications for indoor air quality improvements, including zero emission ice 
36.12 	resurfacing equipment, and for projects that eliminate R-22.
36.13 	(m) Grant money may be used for ice centers designed for sports other than hockey.
36.14 	(n) Grant money may be used to upgrade existing facilities to comply with the bleacher 
36.15 	safety requirements of section 326B.112.

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

36.17 	Sec. 21. Minnesota Statutes 2018, section 353.27, subdivision 3c, is amended to read:
36.18 		Subd. 3c.Former MERF members; member and employer contributions. (a) For 
36.19 	the period July 1, 2015 2019, through December 31, 2031, the member contributions for 
36.20 	former members of the Minneapolis Employees Retirement Fund and by the former 
36.21 	Minneapolis Employees Retirement Fund-covered employing units are governed by this 
36.22 	subdivision.
36.23 	(b) The member contribution for a public employee who was a member of the former 
36.24 	Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of 
36.25 	the employee.
36.26 	(c) The employer regular contribution with respect to a public employee who was a 
36.27 	member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 
36.28 	percent of the salary of the employee.
36.29 	(d) The annual employer supplemental contribution is the employing unit's share of 
36.30 	$31,000,000. For calendar years 2017 and 2018, the employer supplemental contribution 
36.31 	is the employing unit's share of $21,000,000 $37,000,000.
37.1 	(e) Each employing unit's share under paragraph (d) is the amount determined from an 
37.2 	allocation between each employing unit in the portion equal to the unit's employer 
37.3 	supplemental contribution paid or payable under Minnesota Statutes 2012, section 353.50, 
37.4 	during calendar year 2014.
37.5 	(f) The employer supplemental contribution amount under paragraph (d) for calendar 
37.6 	year 2015 2019 must be invoiced by the executive director of the Public Employees 
37.7 	Retirement Association by July 1, 2015 2019. The calendar year 2015 payment is payable 
37.8 	in a single amount on or before September 30, 2015. For subsequent calendar years, the 
37.9 	employer supplemental contribution under paragraph (d) must be invoiced on January 31 
37.10 	of each year and. The employer supplemental contribution is payable in two parts, with the 
37.11 	first half payable on or before July 31 and with the second half payable on or before 
37.12 	December 15. Late payments are payable with interest, compounded annually, at the 
37.13 	applicable rate or rates specified in section 356.59, subdivision 3, per month for each month 
37.14 	or portion of a month that has elapsed after the due date.
37.15 	(g) The employer supplemental contribution under paragraph (d) terminates on December 
37.16 	31, 2031.

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

37.18 	Sec. 22. Minnesota Statutes 2018, section 645.071, is amended to read:
37.19 	645.071 STANDARD OF TIME.
37.20 	Every mention of, or reference to, any hour or time in any law, during any period of the 
37.21 	year, is to be construed with reference to and in accordance with the standard time or
37.22 	advanced standard time provided by federal law. No department of the state government 
37.23 	and no county, city or town shall employ, during any period of the year, any other time, or 
37.24 	adopt any ordinance or order providing for the use, during any period of the year, of any 
37.25 	other time than the federal standard time or advanced standard time.

37.26 	EFFECTIVE DATE. This section is effective upon the first commencement of advanced 
37.27 	standard time, also known as daylight saving time, following enactment of an amendment 
37.28 	to United States Code, title 15, section 260a, or another applicable law, which authorizes 
37.29 	states to observe advanced standard time year-round.

38.1 	Sec. 23. INITIAL APPOINTMENTS.
 38.2 	(a) Appointing authorities for the Legislative Commission on Housing Affordability 
38.3 	under Minnesota Statutes, section 3.8845, must make initial appointments by June 1, 2019, 
38.4 	to serve a term ending in January 2021.
38.5 	(b) The speaker of the house must designate one member of the commission to convene 
38.6 	the first meeting of the commission by June 15, 2019. A member of the house of 
38.7 	representatives shall serve as the first chair of the commission. A member of the senate 
38.8 	shall serve as chair of the commission beginning in January 2021.

38.9 	Sec. 24. WORKING GROUP ON STATE EMPLOYMENT AND RETENTION OF 
38.10 	EMPLOYEES WITH DISABILITIES.
 38.11 		Subdivision 1.Members. (a) A working group on state employment and retention of 
38.12 	employees with disabilities is formed and must consist of the following members:
38.13 	(1) a representative of the Commission of the Deaf, Deafblind and Hard of Hearing;
38.14 	(2) a representative of the Governor's Council on Developmental Disabilities;
38.15 	(3) a representative of Vocational Rehabilitation Services from within the Department 
38.16 	of Employment and Economic Development;
38.17 	(4) a representative of State Services for the Blind from within the Department of 
38.18 	Employment and Economic Development;
38.19 	(5) a representative of the Minnesota Council on Disability;
38.20 	(6) a representative of the Office of the Ombudsman for Mental Health and 
38.21 	Developmental Disabilities;
38.22 	(7) a representative of the Olmstead Implementation Office with the Minnesota Housing 
38.23 	Finance Agency;
38.24 	(8) a representative of the MN.IT Office of Accessibility;
38.25 	(9) a representative of A System of Technology to Achieve Results from within the 
38.26 	Department of Administration; and
38.27 	(10) a representative from Minnesota Management and Budget.
38.28 	(b) Each of the entities listed in paragraph (a) must appoint its representative to the 
38.29 	working group.
39.1 		Subd. 2.Convening authority; chair. The Commission of the Deaf, Deafblind and 
39.2 	Hard of Hearing is responsible for convening the working group and its representative to 
39.3 	the working group shall act as chair for all meetings.
39.4 		Subd. 3.Duties; timing. The working group must report on strategies for attracting and 
39.5 	retaining state employees with disabilities to Minnesota Management and Budget and to 
39.6 	the legislative committees with responsibility for state finance and operation. The report 
39.7 	must be delivered by January 15, 2020.

39.8 	Sec. 25. FULL-TIME EQUIVALENT FREEZE.
 39.9 	(a) The commissioner of management and budget shall determine the number of full-time 
39.10 	equivalent positions employed by each agency as of June 30, 2019.
39.11 	(b) Appropriations from any funds for fiscal years 2020 and 2021 must not be used to 
39.12 	pay salary or benefits to employ more full-time equivalent positions than determined in 
39.13 	paragraph (a).
39.14 	(c) For purposes of this section, "agency" has the meaning given in Minnesota Statutes, 
39.15 	section 16A.011, subdivision 2, and does not include the Minnesota State Colleges and 
39.16 	Universities.

39.17 	Sec. 26. REDUCTION IN APPROPRIATIONS FOR UNFILLED POSITIONS.
 39.18 		Subdivision 1.Reduction required. The general fund and nongeneral fund appropriations 
39.19 	to an agency for agency operations for the biennium ending June 30, 2021, are reduced by 
39.20 	the amount of salary and benefits savings that result from any positions that have not been 
39.21 	filled within 180 days of the posting of the position. This section applies only to positions 
39.22 	that are posted in fiscal years 2019, 2020, and 2021. Reductions made under this paragraph 
39.23 	must be reflected as reductions in agency base budgets for fiscal years 2022 and 2023. This 
39.24 	section does not apply to any positions that require law enforcement training.
39.25 		Subd. 2.Reporting. The commissioner of management and budget must report to the 
39.26 	chairs and ranking minority members of the senate and the house of representatives finance 
39.27 	committees regarding the amount of reductions in spending by each agency under this 
39.28 	section.
39.29 		Subd. 3.Application. For purposes of this section, "agency" has the meaning given in 
39.30 	Minnesota Statutes, section 16A.011, subdivision 2, and does not include the Minnesota 
39.31 	State Colleges and Universities.

40.1 	Sec. 27. BOARD OF COSMETOLOGIST EXAMINERS RULEMAKING.
 40.2 	Rules proposed by the Board of Cosmetologist Examiners after January 1, 2019, shall 
40.3 	not take effect until after adjournment of the regular session of the legislature in 2020.

40.4 	Sec. 28. REPEALER.
 40.5 	Minnesota Statutes 2018, sections 3.9735; and 353.505, are repealed.

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

40.7 	ARTICLE 3
40.8 	INFORMATION TECHNOLOGY

40.9 	Section 1. [3.199] ACCESSIBILITY IN THE LEGISLATURE'S INFORMATION 
40.10 	TECHNOLOGY.
40.11 		Subdivision 1.Definitions. (a) For purposes of this section, the following term has the 
40.12 	meaning given.
40.13 	(b) "Responsible authority" means:
40.14 	(1) for the house of representatives, the chief clerk of the house;
40.15 	(2) for the senate, the secretary of the senate;
40.16 	(3) for the Office of the Revisor of Statutes, the revisor of statutes;
40.17 	(4) for the Office of the Legislative Auditor, the legislative auditor;
40.18 	(5) for the Legislative Reference Library, the library director;
40.19 	(6) for the Legislative Budget Office, the director of the Legislative Budget Office; and
40.20 	(7) for any entity administered by the legislative branch not listed in clauses (1) to (6), 
40.21 	the director of the Legislative Coordinating Commission.
40.22 		Subd. 2.Accessibility standards; compliance. The senate, the house of representatives, 
40.23 	and joint legislative offices and commissions must comply with accessibility standards 
40.24 	adopted for state agencies by the chief information officer under section 16E.03, subdivision 
40.25 	9, for technology, software, and hardware procurement, unless the responsible authority for 
40.26 	a legislative body or office has approved an exception for a standard for that body or office.
40.27 		Subd. 3.Not subject to MN.IT authority. The chief information officer is not authorized 
40.28 	to manage or direct compliance of the legislature with accessibility standards.

40.29 	EFFECTIVE DATE. This section is effective September 1, 2021.

41.1 	Sec. 2. [3.888] LEGISLATIVE COMMISSION ON CYBERSECURITY.
41.2 		Subdivision 1.Membership. The Legislative Commission on Cybersecurity consists 
41.3 	of the following eight members:
41.4 	(1) four senators, including two senators appointed by the senate majority leader and 
41.5 	two senators appointed by the senate minority leader; and
41.6 	(2) four members of the house of representatives, including two members appointed by 
41.7 	the speaker of the house and two members appointed by the minority leader of the house.
41.8 		Subd. 2.Terms; vacancies. Members of the commission serve for a two-year term 
41.9 	beginning upon appointment and expiring on appointment of a successor after the opening 
41.10 	of the next regular session of the legislature in the odd-numbered year. A vacancy in the 
41.11 	membership of the commission must be filled for the unexpired term in a manner that will 
41.12 	preserve the representation established by this section.
41.13 		Subd. 3.Duties. The commission shall provide oversight of the state's cybersecurity 
41.14 	measures. The commission shall review the policies and practices of state agencies with 
41.15 	regard to cybersecurity and may recommend changes in policy to adequately protect the 
41.16 	state from cybersecurity threats. The commission may develop recommendations and draft 
41.17 	legislation to support and strengthen the state's cybersecurity infrastructure.
41.18 		Subd. 4.Chair. The commission shall elect a chair by a majority vote of members 
41.19 	present. The officers shall alternate between a member of the senate and a member of the 
41.20 	house of representatives. A chair shall serve a two-year term expiring upon election of a 
41.21 	new chair after the opening of the next regular session of the legislature in the odd-numbered 
41.22 	year.
41.23 		Subd. 5.Meetings. The commission must meet at least three times per calendar year. 
41.24 	The meetings of the commission are subject to section 3.055, except that the commission 
41.25 	may close a meeting when necessary to safeguard the state's cybersecurity. The minutes, 
41.26 	recordings, and documents from a closed meeting under this subdivision shall be maintained 
41.27 	by the Legislative Coordinating Commission and shall not be made available to the public 
41.28 	until eight years after the date of the meeting.
41.29 		Subd. 6.Administration. The Legislative Coordinating Commission shall provide 
41.30 	administrative services for the commission.
41.31 		Subd. 7.Sunset. The commission sunsets December 31, 2028.

42.1 	Sec. 3. [3.889] LEGISLATIVE COMMISSION ON INFORMATION 
42.2 	TECHNOLOGY.
42.3 		Subdivision 1.Membership. (a) The Legislative Commission on Information Technology 
42.4 	consists of the following eight members:
42.5 	(1) four senators, including two senators appointed by the senate majority leader and 
42.6 	two senators appointed by the senate minority leader; and
42.7 	(2) four members of the house of representatives, including two members appointed by 
42.8 	the speaker of the house and two members appointed by the minority leader of the house.
42.9 	(b) To the extent possible, the appointing authorities must appoint members with 
42.10 	knowledge of technical aspects or management of information technology.
42.11 		Subd. 2.Terms; vacancies. Members of the commission serve for a two-year term 
42.12 	beginning upon appointment and expiring on appointment of a successor after the opening 
42.13 	of the next regular session of the legislature in the odd-numbered year. A vacancy in the 
42.14 	membership of the commission must be filled for the unexpired term in a manner that will 
42.15 	preserve the representation established by this section.
42.16 		Subd. 3.Duties. The commission must consider the issues raised in the 2019 evaluation 
42.17 	report of the Office of the Legislative Auditor titled "Office of Minnesota Information 
42.18 	Technology Services (MN.IT)" and other reports and evaluations issued since January 1, 
42.19 	2014, by the Office of the Legislative Auditor on the topics of information technology or 
42.20 	the Office of MN.IT Services. The commission must prepare draft legislation, as appropriate, 
42.21 	and develop plans or advice to implement the recommendations of the legislative auditor.
42.22 		Subd. 4.Chair. The commission shall elect a chair by a majority vote of members 
42.23 	present. The officers shall alternate between a member of the senate and a member of the 
42.24 	house of representatives. A chair shall serve a two-year term expiring upon election of a 
42.25 	new chair after the opening of the next regular session of the legislature in the odd-numbered 
42.26 	year.
42.27 		Subd. 5.Meetings. The commission must meet at least three times per calendar year. 
42.28 	The meetings of the commission are subject to section 3.055, except that the commission 
42.29 	may close a meeting when necessary to safeguard the state's information technology. The 
42.30 	minutes, recordings, and documents from a closed meeting under this subdivision shall be 
42.31 	maintained by the Legislative Coordinating Commission and shall not be made available 
42.32 	to the public until eight years after the date of the meeting.
43.1 		Subd. 6.Administration. The Legislative Coordinating Commission shall provide 
43.2 	administrative services for the commission.
43.3 		Subd. 7.Sunset. The commission sunsets January 30, 2028.

43.4 	Sec. 4. [15.996] LOCAL GOVERNMENT USER ACCEPTANCE TESTING.
43.5 		Subdivision 1.Applicability. "Agency" as used in this section means any state officer, 
43.6 	employee, board, commission, authority, department, entity, or organization of the executive 
43.7 	branch of state government, including the Minnesota State Colleges and Universities.
43.8 		Subd. 2.User acceptance testing. (a) An agency implementing a new information 
43.9 	technology business software application or new business software application functionality 
43.10 	that significantly impacts the operations of local units of government must provide 
43.11 	opportunities for local government representative involvement in user acceptance testing, 
43.12 	unless the testing is deemed not feasible or necessary by the relevant agency commissioner, 
43.13 	in consultation with representatives of local units of government and the chief information 
43.14 	officer.
43.15 	(b) The requirements in paragraph (a) only apply to new software applications and new 
43.16 	software application functionality where local units of government will be primary users, 
43.17 	as determined by the relevant agency head in consultation with representatives of local units 
43.18 	of government and the chief information officer. The requirements in paragraph (a) do not 
43.19 	apply to routine software upgrades or application changes that are primarily intended to 
43.20 	comply with federal law, rules, or regulations.

43.21 	Sec. 5. Minnesota Statutes 2018, section 16E.01, subdivision 1a, is amended to read:
43.22 		Subd. 1a.Responsibilities. The office shall provide oversight, leadership, and direction 
43.23 	for information and telecommunications technology policy and the management, delivery, 
43.24 	accessibility, and security of information and telecommunications technology systems and 
43.25 	services in Minnesota for agencies in the executive branch. The office shall manage strategic 
43.26 	investments in information and telecommunications technology systems and services to 
43.27 	encourage the development of a technically literate society, to ensure sufficient access to 
43.28 	and efficient delivery of accessible government services, and to maximize benefits for the 
43.29 	state government as an enterprise.

44.1 	Sec. 6. Minnesota Statutes 2018, section 16E.016, is amended to read:
44.2 	16E.016 RESPONSIBILITY FOR INFORMATION TECHNOLOGY SERVICES 
44.3 	AND EQUIPMENT.
44.4 	(a) The chief information officer is responsible for providing or entering into managed 
44.5 	services contracts for the provision, improvement, and development of the following 
44.6 	information technology systems and services to state agencies:
44.7 	(1) state data centers;
44.8 	(2) mainframes including system software;
44.9 	(3) servers including system software;
44.10 	(4) desktops including system software;
44.11 	(5) laptop computers including system software;
44.12 	(6)(4) a data network including system software;
44.13 	(7) database, (5) electronic mail, office systems, reporting, and other standard software 
44.14 	tools;
44.15 	(8) business application software and related technical support services;
44.16 	(9) (6) help desk for the components listed in clauses (1) to (8) (5);
44.17 	(10) (7) maintenance, problem resolution, and break-fix for the components listed in 
44.18 	clauses (1) to (8) (5); and
44.19 	(11) (8) regular upgrades and replacement for the components listed in clauses (1) to 
44.20 	(8); and (5).
44.21 	(12) network-connected output devices.
44.22 	(b) The chief information officer is responsible for providing or entering into managed 
44.23 	services contracts for the provision, improvement, and development of the following 
44.24 	information technology systems and services to a state agency, at the request of the agency:
44.25 	(1) desktops including system software;
44.26 	(2) laptop computers including system software;
44.27 	(3) database, office systems, reporting, and other standard software tools;
44.28 	(4) business application software and related technical support services;
44.29 	(5) help desk for the components listed in clauses (1) to (4);
45.1 	(6) maintenance, problem resolution, and break-fix for the components listed in clauses 
45.2 	(1) to (4);
45.3 	(7) regular upgrades and replacement for the components listed in clauses (1) to (4); and
45.4 	(8) network-connected output devices.
45.5 	(b)(c) All state agency employees whose work primarily involves functions specified 
45.6 	in paragraph (a) are employees of the Office of MN.IT Services. This includes employees 
45.7 	who directly perform the functions in paragraph (a), as well as employees whose work 
45.8 	primarily involves managing, supervising, or providing administrative services or support 
45.9 	services to employees who directly perform these functions. The chief information officer 
45.10 	may assign employees of the office to perform work exclusively for another state agency.
45.11 	(c) (d) Subject to sections 16C.08 and 16C.09, the chief information officer may allow 
45.12 	a state agency to obtain services specified in paragraph (a) through a contract with an outside 
45.13 	vendor when the chief information officer and the agency head agree that a contract would 
45.14 	provide best value, as defined in section 16C.02, under the service-level agreement. The 
45.15 	chief information officer must require that Agency contracts with outside vendors ensure 
45.16 	that systems and services are compatible with standards established by the Office of MN.IT 
45.17 	Services.
45.18 	(d) (e) The Minnesota State Retirement System, the Public Employees Retirement 
45.19 	Association, the Teachers Retirement Association, the State Board of Investment, the 
45.20 	Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide Radio 
45.21 	Board are not state agencies for purposes of this section.

45.22 	EFFECTIVE DATE. This section is effective July 1, 2019, and applies to contracts 
45.23 	entered into on or after that date.

45.24 	Sec. 7. Minnesota Statutes 2018, section 16E.03, subdivision 1, is amended to read:
45.25 		Subdivision 1.Definitions. (a) For the purposes of this chapter, the following terms 
45.26 	have the meanings given them.
45.27 	(b) "Information and telecommunications technology systems and services" means all 
45.28 	computing and telecommunications hardware and software, the activities undertaken to 
45.29 	secure that hardware and software, and the activities undertaken to acquire, transport, process, 
45.30 	analyze, store, and disseminate information electronically. "Information and 
45.31 	telecommunications technology systems and services" includes all proposed expenditures 
45.32 	for computing and telecommunications hardware and software, security for that hardware 
45.33 	and software, and related consulting or other professional services.
46.1 	(c) "Information and telecommunications technology project" means an effort to acquire 
46.2 	or produce information and telecommunications technology systems and services.
46.3 	(d) "Telecommunications" means voice, video, and data electronic transmissions 
46.4 	transported by wire, wireless, fiber-optic, radio, or other available transport technology.
46.5 	(e) "Cyber security" means the protection of data and systems in networks connected to 
46.6 	the Internet.
46.7 	(f) "State agency" means an agency in the executive branch of state government and 
46.8 	includes the Minnesota Office of Higher Education, but does not include the Minnesota 
46.9 	State Colleges and Universities unless specifically provided elsewhere in this chapter.
46.10 	(g) "Total expected project cost" includes direct staff costs, all supplemental contract 
46.11 	staff and vendor costs, and costs of hardware and software development or purchase. 
46.12 	Breaking a project into several phases does not affect the cost threshold, which must be 
46.13 	computed based on the full cost of all phases.
46.14 	(h) "Cloud computing" has the meaning described by the National Institute of Standards 
46.15 	and Technology of the United States Department of Commerce in special publication 
46.16 	800-145, September 2011.

46.17 	Sec. 8. Minnesota Statutes 2018, section 16E.03, subdivision 2, is amended to read:
46.18 		Subd. 2.Chief information officer's responsibility.  The chief information officer shall:
46.19 	(1) design a master plan for information and telecommunications technology systems 
46.20 	and services in the state and its political subdivisions and shall report on the plan to the 
46.21 	governor and legislature at the beginning of each regular session;
46.22 	(2) coordinate, review, and approve all information and telecommunications technology 
46.23 	projects and oversee the state's information and telecommunications technology systems 
46.24 	and services;
46.25 	(3) establish and enforce compliance with standards for information and 
46.26 	telecommunications technology systems and services that are cost-effective and support 
46.27 	open systems environments and that are compatible with state, national, and international 
46.28 	standards, including accessibility standards;
46.29 	(4) maintain a library of systems and programs developed by the state and its political 
46.30 	subdivisions for use by agencies of government;
46.31 	(5) direct and manage the shared operations of the state's information and 
46.32 	telecommunications technology systems and services; and
47.1 	(6) establish and enforce standards and ensure acquisition of hardware and software 
47.2 	necessary to protect data and systems in state agency networks connected to the Internet.

47.3 	Sec. 9. Minnesota Statutes 2018, section 16E.03, is amended by adding a subdivision to 
47.4 	read:
47.5 		Subd. 4a.Cloud computing services. (a) The project evaluation procedure required by 
47.6 	subdivision 4 must include a review of cloud computing service options, including any 
47.7 	security benefits and cost savings associated with purchasing those service options from a 
47.8 	cloud computing service provider.
47.9 	(b) No later than October 1, 2019, and by October 1 of each even-numbered year 
47.10 	thereafter, the chief information officer must submit a report to the governor and to the 
47.11 	legislative committees with primary jurisdiction over state information technology issues 
47.12 	on the consideration of cloud computing service options in the information and 
47.13 	communications projects proposed by state agencies. The report must provide examples of 
47.14 	projects that produce cost savings and other benefits, including security enhancements, from 
47.15 	the use of cloud computing services.

47.16 	Sec. 10. Minnesota Statutes 2018, section 16E.03, is amended by adding a subdivision to 
47.17 	read:
47.18 		Subd. 11.Technical support to the legislature. The chief information officer, or a 
47.19 	designee, must provide technical support to assist the legislature to comply with accessibility 
47.20 	standards under section 3.199, subdivision 2. Support under this subdivision must include:
47.21 	(1) clarifying the requirements of the accessibility standards;
47.22 	(2) providing templates for common software applications used in developing documents 
47.23 	used by the legislature;
47.24 	(3) assisting the development of training for staff to comply with the accessibility 
47.25 	standards and assisting in providing the training; and
47.26 	(4) assisting the development of technical applications that enable legislative documents 
47.27 	to be fully accessible.
47.28 	The chief information officer must provide these services at no cost to the legislature.

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

48.1 	Sec. 11. Minnesota Statutes 2018, section 16E.035, is amended to read:
48.2 	16E.035 TECHNOLOGY INFRASTRUCTURE INVENTORY; SECURITY RISK 
48.3 	ASSESSMENT.
48.4 		Subdivision 1.Inventory required. The chief information officer must prepare a financial
48.5 	an inventory of technology infrastructure owned or leased by MN.IT Services or a state 
48.6 	agency. The inventory must include:
48.7 	(1) each agency's information technology security program;
48.8 	(2) an inventory of servers, mainframes, cloud services, and other information technology 
48.9 	systems and services, itemized by agency;
48.10 	(3) identification of vendors that operate or manage information technology systems or 
48.11 	services within each agency;
48.12 	(4) information on how the technology each system or service fits into the state's 
48.13 	information technology architecture; and
48.14 	(2) (5) a projected replacement schedule for each system or service.
48.15 	The chief information officer must report the inventory to the legislative committees 
48.16 	with primary jurisdiction over state technology issues by July 1 of each even-numbered 
48.17 	year.
48.18 		Subd. 2.Risk assessment. (a) The chief information officer must conduct a risk 
48.19 	assessment of the information technology systems and services contained in the inventory 
48.20 	required by subdivision 1. The risk assessment must include:
48.21 	(1) an analysis and assessment of each state agency's security and operational risks; and
48.22 	(2) for a state agency found to be at higher security and operational risks, a detailed 
48.23 	analysis of, and an estimate of the costs to implement:
48.24 	(i) the requirements for the agency to address the risks and related vulnerabilities; and
48.25 	(ii) agency efforts to address the risks through the modernization of information 
48.26 	technology systems and services, the use of cloud computing services, and use of a statewide 
48.27 	data center.
48.28 	(b) This section does not require disclosure of security information classified under 
48.29 	section 13.37.
48.30 		Subd. 3.Reports required. The chief information officer must submit a report containing 
48.31 	the inventory and risk assessments required by this section to the governor and the chairs 
49.1 	and ranking minority members of the legislative committees with primary jurisdiction over 
49.2 	state information technology issues no later than October 1, 2019, and by October 1 of each 
49.3 	even-numbered year thereafter.

49.4 	Sec. 12. [16E.046] PROJECT MANAGEMENT FOR AGENCY INFORMATION 
49.5 	TECHNOLOGY PROJECTS.
49.6 		Subdivision 1.Process for information technology project management. When an 
49.7 	executive branch state agency seeks to have a new information technology project developed 
49.8 	for the agency, the commissioner or head of the agency must follow the following steps:
49.9 	(1) establish business rules for the information technology project;
49.10 	(2) develop a statement of work that defines project-specific activities, deliverables, and 
49.11 	timelines for completion of the project. Where appropriate, as determined by the 
49.12 	commissioner of the agency, the project should be divided into phases, with activities, 
49.13 	deliverables, and timelines specified for each phase; and
49.14 	(3) obtain a bid for the project based on the statement of work from the chief information 
49.15 	officer for the office to perform the specified work on the specified timeline. If the office 
49.16 	is not able to perform the specified work on the schedule described, the chief information 
49.17 	officer must notify the commissioner of the agency. The commissioner may also obtain a 
49.18 	bid for the project from private vendors or may have the work performed by employees 
49.19 	within the agency. The commissioner may contract with the office to oversee aspects of the 
49.20 	project to be performed by a private vendor.
49.21 		Subd. 2.Certification before deployment; project performed by MN.IT. For an 
49.22 	information technology project performed by the office, or a project for which MN.IT has 
49.23 	oversight responsibility on behalf of an executive branch state agency, the chief information 
49.24 	officer and the commissioner of the agency must share responsibility for decisions regarding 
49.25 	deployment of the project as follows:
49.26 	(1) no information technology project may be deployed without written certification by 
49.27 	both the commissioner of the agency and the chief information officer that the project 
49.28 	satisfies all requirements in the statement of work and adheres to business rules specified 
49.29 	by the commissioner of the agency; and
49.30 	(2) when a project or phase of a project fails to meet deadlines established in a statement 
49.31 	of work, the commissioner or head of the agency and the chief information officer shall 
49.32 	report within one week of the unmet deadline to the chairs and ranking minority members 
50.1 	of the committees in the house of representatives and the senate with jurisdiction over the 
50.2 	Office of MN.IT Services and over the agency.
50.3 		Subd. 3.Certification before deployment; project performed by private vendor. For 
50.4 	an information technology project performed by a private vendor without MN.IT 
50.5 	involvement, the commissioner or head of the agency must certify that the project satisfied 
50.6 	all requirements in the statement of work and adheres to business rules for the project. When 
50.7 	the project or phase of a project fails to meet deadlines established in a statement of work, 
50.8 	the commissioner or head of the agency must report within one week of the unmet deadline 
50.9 	to the chairs and ranking minority members of the committees in the house of representatives 
50.10 	and the senate with jurisdiction over the agency.
50.11 		Subd. 4.Standards and procedures. The chief information officer shall work with the 
50.12 	head of each agency supported by the office to establish standards and procedures governing 
50.13 	information technology project development.

50.14 	Sec. 13. Minnesota Statutes 2018, section 16E.0466, subdivision 1, is amended to read:
50.15 		Subdivision 1.Consultation required. (a) Every state agency with an information or 
50.16 	telecommunications project must consult with the Office of MN.IT Services to determine 
50.17 	the information technology cost of the project if the Office of MN.IT Services is selected 
50.18 	by an agency to perform the project. Upon agreement between the commissioner of a 
50.19 	particular agency and the chief information officer, the agency must transfer the information 
50.20 	technology cost portion of the project to the Office of MN.IT Services. Service level 
50.21 	agreements must document all project-related transfers under this section. Those agencies 
50.22 	specified in section 16E.016, paragraph (d) (e), are exempt from the requirements of this 
50.23 	section.
50.24 	(b) Notwithstanding section 16A.28, subdivision 3, any unexpended operating balance 
50.25 	appropriated to a state agency may be transferred to the information and telecommunications 
50.26 	technology systems and services account for the information technology cost of a specific 
50.27 	project, subject to the review of the Legislative Advisory Commission, under section 16E.21, 
50.28 	subdivision 3.

50.29 	Sec. 14. Minnesota Statutes 2018, section 16E.05, subdivision 3, is amended to read:
50.30 		Subd. 3.Capital investment. No state agency may propose or implement a capital 
50.31 	investment plan for a state office building unless:
51.1 	(1) the agency has developed a plan for increasing telecommuting by employees who 
51.2 	would normally work in the building, or the agency has prepared a statement describing 
51.3 	why such a plan is not practicable; and
51.4 	(2) the plan or statement has been reviewed by the office for technical feasibility and 
51.5 	cost.

51.6 	Sec. 15. Minnesota Statutes 2018, section 16E.14, subdivision 3, is amended to read:
51.7 		Subd. 3.Reimbursements. Except as specifically provided otherwise by law, each 
51.8 	agency shall reimburse the MN.IT services revolving fund for the cost of all services, 
51.9 	supplies, materials, labor, and depreciation of equipment, including reasonable overhead 
51.10 	costs, which the chief information officer is authorized and directed to furnish an agency. 
51.11 	The chief information officer shall report the rates to be charged for the revolving fund no 
51.12 	later than July 1 each June 1 each even-numbered calendar year to the chair of the committee 
51.13 	or division in the senate and house of representatives with primary jurisdiction over the 
51.14 	budget of the Office of MN.IT Services. These rates shall apply for the biennium beginning 
51.15 	July 1 of the following calendar year.

51.16 	Sec. 16. Minnesota Statutes 2018, section 16E.18, subdivision 6, is amended to read:
51.17 		Subd. 6.Rates. (a) The chief information officer shall establish reimbursement rates in 
51.18 	cooperation with the commissioner of management and budget to be billed to participating 
51.19 	agencies and educational institutions sufficient to cover the operating, maintenance, and 
51.20 	administrative costs of the system.
51.21 	(b) An invoice or statement to an agency from the chief information officer must include 
51.22 	clear descriptions of the services the Office of MN.IT Services has provided. The invoice 
51.23 	or statement must categorize or code services in a manner prescribed by the agency, or the 
51.24 	chief information officer must provide supplemental information with an invoice or statement 
51.25 	that categorizes or codes all services reflected on the invoice or statement in a manner 
51.26 	prescribed by the agency.
51.27 	(c) Except as otherwise provided in subdivision 4, a direct appropriation made to an 
51.28 	educational institution for usage costs associated with the state information infrastructure 
51.29 	must only be used by the educational institution for payment of usage costs of the network 
51.30 	as billed by the chief information officer.

52.1 	Sec. 17. LEGISLATIVE EMPLOYEE WORKING GROUP ON THE 
52.2 	LEGISLATURE'S ACCESSIBILITY MEASURES.
 52.3 		Subdivision 1.Membership. The legislative employee working group on the legislature's 
52.4 	accessibility measures consists of 12 members. The senate majority leader and the speaker 
52.5 	of the house must each appoint four employees from among the following offices that serve 
52.6 	the respective bodies: media offices, information technology offices, legal and fiscal analysis 
52.7 	offices, the secretary of the senate, the chief clerk of the house of representatives, and other 
52.8 	offices considered appropriate. The chair of the Legislative Coordinating Commission must 
52.9 	appoint four members from among the employees who serve in the Office of the Revisor 
52.10 	of Statutes, the Legislative Reference Library, the Legislative Coordinating Commission, 
52.11 	and the Office of the Legislative Auditor. In conducting its work, the working group may 
52.12 	consult with the MN.IT Office of Accessibility; the Commission of Deaf, Deafblind and 
52.13 	Hard of Hearing; the Minnesota Council on Disability; State Services for the Blind; and 
52.14 	other groups that may be of assistance. Appointments to the working group must be made 
52.15 	by June 1, 2019.
52.16 		Subd. 2.Duties; report. (a) The employee working group must submit a report to the 
52.17 	chairs and ranking minority members of the legislative committees with jurisdiction over 
52.18 	rules and to the chair and vice-chair of the Legislative Coordinating Commission by January 
52.19 	15, 2020. The report must:
52.20 	(1) identify ways the legislature's accessibility measures do not meet accessibility 
52.21 	standards applicable to state agencies under Minnesota Statutes, section 16E.03, subdivision 
52.22 	9;
52.23 	(2) identify issues and technologies that may present barriers to compliance;
52.24 	(3) suggest a compliance exception process;
52.25 	(4) describe a plan to update the legislature's accessibility measures to be comparable 
52.26 	to those required of state agencies under Minnesota Statutes, section 16E.03, subdivision 
52.27 	9; and
52.28 	(5) estimate the costs for updates to the legislature's accessibility measures.
52.29 	(b) For purposes of this report, the employee working group does not need to consider 
52.30 	making archived documents, recordings, or publications accessible.
52.31 		Subd. 3.First meeting; chair. The executive director of the Legislative Coordinating 
52.32 	Commission must convene the first meeting of the working group by July 15, 2019. At the 
52.33 	first meeting, the members must elect a chair.
53.1 		Subd. 4.Compensation; reimbursement. Members serve without compensation but 
53.2 	may be reimbursed for expenses.
53.3 		Subd. 5.Administrative support. The Legislative Coordinating Commission must 
53.4 	provide administrative support to the working group.
53.5 		Subd. 6.Expiration. The working group expires January 15, 2020, or a later date selected 
53.6 	by agreement of the appointing authorities in subdivision 1, but not later than January 15, 
53.7 	2025.

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

53.9 	Sec. 18. FIRST APPOINTMENTS AND FIRST MEETING OF LEGISLATIVE 
53.10 	COMMISSION ON CYBERSECURITY.
 53.11 		Subdivision 1.First appointments. Appointing authorities must make initial 
53.12 	appointments to the Legislative Commission on Cybersecurity by July 1, 2019.
53.13 		Subd. 2.First meeting. The majority leader of the senate shall designate one senate 
53.14 	member of the Legislative Commission on Cybersecurity under Minnesota Statutes, section 
53.15 	3.888, to convene the first meeting by August 15, 2019. The commission must select a chair 
53.16 	from among the senate members at the first meeting.
53.17 		Subd. 3.Meetings in 2019. Notwithstanding Minnesota Statutes, section 3.888, 
53.18 	subdivision 5, the commission must meet at least twice in 2019.

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

53.20 	Sec. 19. COMPLETION OF INFORMATION TECHNOLOGY CONSOLIDATION; 
53.21 	SURCHARGE AND SUSPENSION OF SERVICES FOR NONCOMPLIANT 
53.22 	AGENCIES; STRATEGIC WORKPLAN.
 53.23 		Subdivision 1.Consolidation required; state agency surcharge. (a) No later than 
53.24 	December 31, 2020, the state chief information officer must complete the executive branch 
53.25 	information technology consolidation required by Laws 2011, First Special Session chapter 
53.26 	10, article 4, section 7, as amended by Laws 2013, chapter 134, section 29. The head of any 
53.27 	state agency subject to consolidation must assist the state chief information officer as 
53.28 	necessary to implement the requirements of this subdivision.
53.29 	(b) Beginning July 1, 2020, the state chief information officer must impose a technology 
53.30 	consolidation surcharge of two percent on billings, and must suspend ongoing work on any 
53.31 	new projects or system upgrades, for an agency with information technology systems that 
54.1 	have not fully integrated into the statewide consolidated system despite the requirements 
54.2 	of law. Amounts received from the surcharge must be deposited into the general fund and 
54.3 	used to support information technology projects within agencies that have completed the 
54.4 	consolidation or for other purposes directed by law.
54.5 		Subd. 2.Strategic workplan. No later than August 1, 2019, the state chief information 
54.6 	officer must prepare a strategic workplan detailing the steps necessary to complete the 
54.7 	information technology consolidation required by subdivision 1. The plan must include 
54.8 	benchmark goals that can be reasonably measured and documented and have specific 
54.9 	deadlines to be met within each quarter. The benchmark goals must include but are not 
54.10 	limited to strategies for implementing the cloud computing services review required by 
54.11 	Minnesota Statutes, section 16E.03, subdivision 4a, and other tools to provide secure and 
54.12 	cost-effective services to executive branch agencies and other end-users.
54.13 		Subd. 3.Progress reports. (a) No later than September 1, 2019, the state chief 
54.14 	information officer must submit a copy of the workplan required by subdivision 2 to the 
54.15 	chairs and ranking minority members of the legislative committees with primary jurisdiction 
54.16 	over state government finance and state information technology services.
54.17 	(b) No later than October 1, 2019, and quarterly thereafter, the state chief information 
54.18 	officer must submit a progress report to the committees receiving the workplan required by 
54.19 	paragraph (a). At a minimum, the progress reports must include:
54.20 	(1) information sufficient to determine whether deadlines for each benchmark goal have 
54.21 	been met and an explanation of the circumstances for any deadline that has not been met;
54.22 	(2) details on the progress toward achieving each benchmark goal; and
54.23 	(3) information on any new or unexpected costs or other barriers that impact progress 
54.24 	toward achieving a benchmark goal, including a detailed explanation of efforts by the state 
54.25 	chief information officer to reduce or eliminate those costs or barriers to ensure achievement 
54.26 	of that goal.
54.27 	The report must also identify any agencies subject to the surcharge required under subdivision 
54.28 	1, paragraph (b).
54.29 	(c) The state chief information officer must appear at public hearings convened by the 
54.30 	chairs of the committees identified in paragraph (a) and respond to questions from committee 
54.31 	members regarding the progress update.

55.1 	Sec. 20. FIRST APPOINTMENTS AND FIRST MEETING OF LEGISLATIVE 
55.2 	COMMISSION ON INFORMATION TECHNOLOGY.
 55.3 		Subdivision 1.First appointments. Appointing authorities must make initial 
55.4 	appointments to the Legislative Commission on Information Technology by July 1, 2019.
55.5 		Subd. 2.First meeting. The majority leader of the senate shall designate one senate 
55.6 	member of the Legislative Commission on Information Technology under Minnesota 
55.7 	Statutes, section 3.888, to convene the first meeting by August 15, 2019. The commission 
55.8 	must select a chair from among the senate members at the first meeting.

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

55.10 	Sec. 21. REVISOR INSTRUCTION.
 55.11 	The chief information officer is required to work with the revisor of statutes to prepare 
55.12 	draft legislation to eliminate all references in law to the "North Star" service and replace it 
55.13 	with "state web portal."

55.14 	ARTICLE 4
55.15 	RACING COMMISSION

55.16 	Section 1. Minnesota Statutes 2018, section 240.01, is amended by adding a subdivision 
55.17 	to read:
55.18 		Subd. 18a.Racing or gaming-related vendor. "Racing or gaming-related vendor" 
55.19 	means any person or entity that manufactures, sells, provides, distributes, repairs or maintains 
55.20 	equipment or supplies used at a Class A facility or provides services to a Class A facility 
55.21 	or Class B license holder that are directly related to the running of a horse race, simulcasting, 
55.22 	pari-mutuel betting, or card playing.

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

55.24 	Sec. 2. Minnesota Statutes 2018, section 240.02, subdivision 2, is amended to read:
55.25 		Subd. 2.Qualifications. A member of the commission must have been a resident of 
55.26 	Minnesota for at least five years before appointment, and must have a background and 
55.27 	experience as would qualify for membership on the commission. A member must, before 
55.28 	taking a place on the commission, file a bond in the principal sum of $100,000 payable to 
55.29 	the state, conditioned upon the faithful performance of duties. No commissioner, nor any 
55.30 	member of the commissioner's immediate family residing in the same household, may hold 
56.1 	a license issued by the commission or have a direct or indirect financial interest in a 
56.2 	corporation, partnership, or association which holds a license issued by the commission.

56.3 	Sec. 3. Minnesota Statutes 2018, section 240.02, subdivision 6, is amended to read:
56.4 		Subd. 6.Annual Biennial report. The commission shall on February 15 of each 
56.5 	odd-numbered year submit a report to the governor and legislature on its activities, 
56.6 	organizational structure, receipts and disbursements, and recommendations for changes in 
56.7 	the laws relating to racing and pari-mutuel betting.

56.8 	Sec. 4. Minnesota Statutes 2018, section 240.08, subdivision 5, is amended to read:
56.9 		Subd. 5.Revocation and suspension. (a) After providing a licensee with notice and an 
56.10 	opportunity to be heard, the commission may:
56.11 	(1) revoke a class C license for a violation of law or rule which in the commission's 
56.12 	opinion adversely affects the integrity of horse racing in Minnesota, the public health, 
56.13 	welfare, or safety, or for an intentional false statement made in a license application.; or
56.14 	The commission may (2) suspend a class C license for up to one year five years for a 
56.15 	violation of law, order or rule. If the license expires during the term of suspension, the 
56.16 	licensee shall be ineligible to apply for another license from the commission until the 
56.17 	expiration of the term of suspension.
56.18 	(b) The commission may delegate to its designated agents the authority to impose 
56.19 	suspensions of class C licenses, and.
56.20 	(c) Except as provided in paragraph (d), the revocation or suspension of a class C license 
56.21 	may be appealed to the commission according to its rules.
56.22 	(b) A license revocation or suspension for more than 90 days is a contested case under 
56.23 	sections 14.57 to 14.69 of the Administrative Procedure Act and is in addition to criminal 
56.24 	penalties imposed for a violation of law or rule.
56.25 	(d) If the commission revokes or suspends a class C license for more than one year, the 
56.26 	licensee has the right to appeal by requesting a contested case hearing under chapter 14. 
56.27 	The request must be made in writing and sent to the commission by certified mail or personal 
56.28 	service. A request sent by certified mail must be postmarked within ten days after the licensee 
56.29 	receives the order of revocation or suspension from the commission. A request sent by 
56.30 	personal service must be received by the commission within ten days after the licensee 
56.31 	receives the order of revocation or suspension from the commission.
57.1 	(e) The commission may summarily suspend a license for more than up to 90 days prior 
57.2 	to a contested case hearing where it is necessary to ensure the integrity of racing or to protect 
57.3 	the public health, welfare, or safety. A contested case hearing must be held within 30 days 
57.4 	of the summary suspension and the administrative law judge's report must be issued within 
57.5 	30 days from the close of the hearing record. In all cases involving summary suspension 
57.6 	the commission must issue its final decision within 30 days from receipt of the report of 
57.7 	the administrative law judge and subsequent exceptions and argument under section 14.61.
57.8 	The licensee has the right to appeal a summary suspension to the commission according to 
57.9 	its rules.

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

57.11 	Sec. 5. Minnesota Statutes 2018, section 240.10, is amended to read:
57.12 	240.10 LICENSE FEES.
57.13 	(a) The fee for a class A license is $253,000 per year and must be remitted on July 1. 
57.14 	The fee for a class B license is $500 for each assigned racing day and $100 for each day on 
57.15 	which simulcasting is authorized and must be remitted on July 1. The fee for a class D 
57.16 	license is $50 for each assigned racing day on which racing is actually conducted. Fees 
57.17 	imposed on class D licenses must be paid to the commission at a time and in a manner as 
57.18 	provided by rule of the commission.
57.19 	(b) The commission shall by rule establish an annual license fee for each occupation it 
57.20 	licenses under section 240.08.
57.21 	(c) The initial annual license application fee for a class C license to provide advance 
57.22 	deposit wagering on horse racing under this chapter is $10,000 and an annual license fee 
57.23 	of $2,500 applies thereafter.
57.24 	(d) Notwithstanding section 16A.1283, the commission shall by rule establish an annual 
57.25 	license fee for each type of racing or gaming-related vendor it licenses, not to exceed $2,500.

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

57.27 	Sec. 6. Minnesota Statutes 2018, section 240.12, is amended to read:
57.28 	240.12 LICENSE AGREEMENTS.
57.29 	The commission may enter into agreements or compacts with comparable bodies in 
57.30 	other racing jurisdictions for the mutual recognition of occupational licenses issued by each 
57.31 	body. The commission may by rule provide for and may charge a fee for the registration of 
57.32 	each license issued in another jurisdiction.

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

58.2 	Sec. 7. Minnesota Statutes 2018, section 240.13, subdivision 5, is amended to read:
58.3 		Subd. 5.Purses. (a) From the amounts deducted from all pari-mutuel pools by a licensee,
58.4 	including breakage, an amount equal to not less than the following percentages of all money 
58.5 	in all pools must be set aside by the licensee and used for purses for races conducted by the 
58.6 	licensee, provided that a licensee may agree by contract with an organization representing 
58.7 	a majority of the horsepersons racing the breed involved to set aside amounts in addition 
58.8 	to the following percentages, if the contract is in writing and filed with reviewed by the 
58.9 	commission for compliance with this subdivision:
58.10 	(1) for live races conducted at a class A facility, 8.4 percent of handle;
58.11 	(2) for simulcasts conducted any day a class A facility is licensed, not less than 37 percent 
58.12 	of the takeout amount remaining after deduction for the state pari-mutuel tax, payment to 
58.13 	the breeders fund, and payment to the sending out-of-state racetrack for receipt of the signal.
58.14 	The commission may by rule provide for the administration and enforcement of this 
58.15 	subdivision. The deductions for payment to the sending out-of-state racetrack must be actual, 
58.16 	except that when there exists any overlap of ownership, control, or interest between the 
58.17 	sending out-of-state racetrack and the receiving licensee, the deduction must not be greater 
58.18 	than three percent unless agreed to between the licensee and the horsepersons' organization 
58.19 	representing the majority of horsepersons racing the breed racing the majority of races 
58.20 	during the existing racing meeting or, if outside of the racing season, during the most recent 
58.21 	racing meeting.
58.22 	The licensee shall pay to the commission for deposit in the Minnesota breeders fund 
58.23 	5-1/2 percent of the takeout from all pari-mutuel pools generated by wagering at the licensee's 
58.24 	facility on simulcasts of races not conducted in this state.
58.25 	(b) From the money set aside for purses, The licensee shall pay to the horseperson's 
58.26 	organization representing the majority of the horsepersons racing the breed involved and 
58.27 	contracting with the licensee with respect to purses and the conduct of the racing meetings 
58.28 	and providing representation to its members, an amount as may be determined by agreement 
58.29 	by the licensee and the horsepersons' organization sufficient to provide benevolent programs, 
58.30 	benefits, and services for horsepersons and their on-track employees. The amount paid may 
58.31 	be deducted only from the money set aside for purses to be paid in races for the breed 
58.32 	represented by the horseperson's organization or may be paid from breakage retained by 
58.33 	the licensee from live or simulcast wagering as agreed between the licensee and horsepersons' 
59.1 	organization. With respect to racing meetings where more than one breed is racing, the 
59.2 	licensee may contract independently with the horseperson's organization representing each 
59.3 	breed racing. The contract must be in writing and reviewed by the commission for compliance 
59.4 	with this subdivision.
59.5 	(c) Notwithstanding sections 325D.49 to 325D.66, a horseperson's organization 
59.6 	representing the majority of the horsepersons racing a breed at a meeting, and the members 
59.7 	thereof, may agree to withhold horses during a meeting.
59.8 	(d) Money set aside for purses from wagering on simulcasts must be used for purses for 
59.9 	live races involving the same breed involved in the simulcast except that money set aside 
59.10 	for purses and payments to the breeders fund from wagering on simulcasts of races not 
59.11 	conducted in this state, occurring during a live mixed meet, must be allotted to the purses 
59.12 	and breeders fund for each breed participating in the mixed meet as agreed upon by the 
59.13 	breed organizations participating in the live mixed meet. The agreement shall be in writing 
59.14 	and filed with reviewed by the commission for compliance with this subdivision prior to 
59.15 	the first day of the live mixed meet. In the absence of a written agreement filed with reviewed 
59.16 	by the commission, the money set aside for purses and payments to the breeders fund from 
59.17 	wagering on simulcasts, occurring during a live mixed meet, shall be allotted to each breed 
59.18 	participating in the live mixed meet in the same proportion that the number of live races 
59.19 	run by each breed bears to the total number of live races conducted during the period of the 
59.20 	mixed meet.
59.21 	(e) The allocation of money set aside for purses to particular racing meets may be 
59.22 	adjusted, relative to overpayments and underpayments, by contract between the licensee 
59.23 	and the horsepersons' organization representing the majority of horsepersons racing the 
59.24 	breed involved at the licensee's facility. The contract must be in writing and reviewed by 
59.25 	the commission for compliance with this subdivision.
59.26 	(f) Subject to the provisions of this chapter, money set aside from pari-mutuel pools for 
59.27 	purses must be for the breed involved in the race that generated the pool, except that if the 
59.28 	breed involved in the race generating the pari-mutuel pool is not racing in the current racing 
59.29 	meeting, or has not raced within the preceding 12 months at the licensee's class A facility, 
59.30 	money set aside for purses may be distributed proportionately to those breeds that have run 
59.31 	during the preceding 12 months or paid to the commission and used for purses or to promote 
59.32 	racing for the breed involved in the race generating the pari-mutuel pool, or both, in a manner 
59.33 	prescribed by the commission.
59.34 	(g) This subdivision does not apply to a class D licensee.

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

60.2 	Sec. 8. Minnesota Statutes 2018, section 240.131, subdivision 7, is amended to read:
60.3 		Subd. 7.Payments to state. (a) A regulatory fee is imposed at the rate of one percent 
60.4 	of all amounts wagered by Minnesota residents with an authorized advance deposit wagering 
60.5 	provider. The fee shall be declared on a form prescribed by the commission. The ADW 
60.6 	provider must pay the fee to the commission no more than seven 15 days after the end of 
60.7 	the month in which the wager was made. Fees collected under this paragraph must be 
60.8 	deposited in the state treasury and credited to a racing and card-playing regulation account 
60.9 	in the special revenue fund and are appropriated to the commission to offset the costs 
60.10 	associated with regulating horse racing and pari-mutuel wagering in Minnesota.
60.11 	(b) A breeders fund fee is imposed in the amount of one-quarter of one percent of all 
60.12 	amounts wagered by Minnesota residents with an authorized advance deposit wagering 
60.13 	provider. The fee shall be declared on a form prescribed by the commission. The ADW 
60.14 	provider must pay the fee to the commission no more than seven 15 days after the end of 
60.15 	the month in which the wager was made. Fees collected under this paragraph must be 
60.16 	deposited in the state treasury and credited to a racing and card-playing regulation account 
60.17 	in the special revenue fund and are appropriated to the commission to offset the cost of 
60.18 	administering the breeders fund and promote horse breeding in Minnesota.

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

60.20 	Sec. 9. Minnesota Statutes 2018, section 240.135, is amended to read:
60.21 	240.135 CARD CLUB REVENUE.
60.22 	(a) From the amounts received from charges authorized under section 240.30, subdivision 
60.23 	4, the licensee shall set aside the amounts specified in this section to be used for purse 
60.24 	payments. These amounts are in addition to the breeders fund and purse requirements set 
60.25 	forth elsewhere in this chapter.
60.26 	(1) For amounts between zero and $6,000,000, the licensee shall set aside not less than 
60.27 	ten percent to be used as purses.
60.28 	(2) For amounts in excess of $6,000,000, the licensee shall set aside not less than 14 
60.29 	percent to be used as purses.
60.30 	(b) From all amounts set aside under paragraph (a), the licensee shall set aside ten percent 
60.31 	to be deposited in the breeders fund.
61.1 	(c) It is the intent of the legislature that the proceeds of the card playing activities 
61.2 	authorized by this chapter be used to improve the horse racing industry by improving purses. 
61.3 	The licensee and the horseperson's organization representing the majority of horsepersons 
61.4 	who have raced at the racetrack during the preceding 12 months may negotiate percentages 
61.5 	that exceed those stated in this section if the agreement is in writing and filed with reviewed 
61.6 	by the commission for compliance with this section. The commission shall annually review 
61.7 	the financial details of card playing activities and determine if the present use of card playing 
61.8 	proceeds is consistent with the policy established by this paragraph. If the commission 
61.9 	determines that the use of the proceeds does not comply with the policy set forth herein, 
61.10 	then the commission shall direct the parties to make the changes necessary to ensure 
61.11 	compliance. If these changes require legislation, the commission shall make the appropriate 
61.12 	recommendations to the legislature.

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

61.14 	Sec. 10. Minnesota Statutes 2018, section 240.16, subdivision 1, is amended to read:
61.15 		Subdivision 1.Powers and duties. All horse races run at a licensed racetrack must be 
61.16 	presided over by a board of three stewards, who must be appointees of the commission or 
61.17 	persons approved by it. The commission shall designate one steward as chair. At least two 
61.18 	stewards for all races either shall be employees of the commission who shall serve in the 
61.19 	unclassified service, or shall be under contract with the commission to serve as stewards. 
61.20 	The commission may delegate the following duties and powers to a board of stewards:
61.21 	(1) to ensure that races are run in accordance with the commission's rules;
61.22 	(2) to supervise the conduct of racing to ensure the integrity of the sport;
61.23 	(3) to settle disputes arising from the running of horse races, and to certify official results;
61.24 	(4) to impose on licensees, for violation of law or commission rules, fines not exceeding 
61.25 	$5,000 and license suspensions not exceeding 90 days of up to $10,000, suspensions of up 
61.26 	to one year, and other sanctions as delegated by the commission or permitted under its rules;
61.27 	(5) to recommend to the commission where warranted penalties in excess of those in 
61.28 	clause (4);
61.29 	(6) to otherwise enforce the laws and rules of racing; and
61.30 	(7) to perform other duties and have other powers assigned by the commission.

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

62.1 	Sec. 11. Minnesota Statutes 2018, section 240.16, subdivision 2, is amended to read:
62.2 		Subd. 2.Appeals; hearings.  Except as provided by section 240.08, subdivision 5, a 
62.3 	ruling of a board of stewards may be appealed to the commission or be reviewed by it. The 
62.4 	commission may review any ruling by the board of stewards on its own initiative. The 
62.5 	commission may provide for appeals to be heard by less than a quorum of the commission. 
62.6 	A hearing on a penalty imposed by a board of stewards must be granted on request.

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

62.8 	Sec. 12. Minnesota Statutes 2018, section 240.18, subdivision 2, is amended to read:
62.9 		Subd. 2.Thoroughbred and quarterhorse categories. (a) With respect to available 
62.10 	money apportioned in the thoroughbred and quarterhorse categories, 20 percent must be 
62.11 	expended as follows:
62.12 	(1) at least one-half in the form of grants, contracts, or expenditures for equine research 
62.13 	and related education at the University of Minnesota School of Veterinary Medicine public 
62.14 	institutions of postsecondary learning in the state; and
62.15 	(2) the balance in the form of grants, contracts, or expenditures for one or more of the 
62.16 	following:
62.17 	(i) additional equine research and related education;
62.18 	(ii) substance abuse programs for licensed personnel at racetracks in this state; and
62.19 	(iii) promotion and public information regarding industry and commission activities; 
62.20 	racehorse breeding, ownership, and management; and development and expansion of 
62.21 	economic benefits from racing.
62.22 	(b) As a condition of a grant, contract, or expenditure under paragraph (a), the commission 
62.23 	shall require an annual report from the recipient on the use of the funds to the commission, 
62.24 	the chair of the house of representatives Committee on General Legislation, Veterans Affairs, 
62.25 	and Gaming, and the chair of the senate committee on Gaming Regulation.
62.26 	(c) The commission shall include in its annual biennial report a summary of each grant, 
62.27 	contract, or expenditure under paragraph (a), clause (2), and a description of how the 
62.28 	commission has coordinated activities among recipients to ensure the most efficient and 
62.29 	effective use of funds.
62.30 	(d) After deducting the amount for paragraph (a), the balance of the available proceeds 
62.31 	in each category may be expended by the commission to:
63.1 	(1) supplement purses for races held exclusively for Minnesota-bred or Minnesota-foaled 
63.2 	horses, and supplement purses for Minnesota-bred or Minnesota-foaled horses racing in 
63.3 	nonrestricted races in that category;
63.4 	(2) pay breeders' or owners' awards to the breeders or owners of Minnesota-bred horses 
63.5 	in that category which win money at licensed pari-mutuel racetracks in the state licensed 
63.6 	by any state or province; and
63.7 	(3) provide other financial incentives to encourage the horse breeding industry in 
63.8 	Minnesota.

63.9 	Sec. 13. Minnesota Statutes 2018, section 240.18, subdivision 3, is amended to read:
63.10 		Subd. 3.Standardbred category. (a) With respect to the available money apportioned 
63.11 	in the standardbred category, 20 percent must be expended as follows:
63.12 	(1) one-half of that amount to supplement purses for standardbreds at non-pari-mutuel 
63.13 	racetracks in the state; and
63.14 	(2) one-fourth of that amount for the development of non-pari-mutuel standardbred 
63.15 	tracks in the state; and
63.16 	(3) one-fourth (2) one-half of that amount as grants for equine research and related 
63.17 	education at public institutions of postsecondary learning in the state.
63.18 	(b) After deducting the amount for paragraph (a), the balance of the available proceeds 
63.19 	in the standardbred category must be expended by the commission to:
63.20 	(1) supplement purses for races held exclusively for Minnesota-bred and Minnesota-foaled 
63.21 	standardbreds;
63.22 	(2) pay breeders or owners awards to the breeders or owners of Minnesota-bred 
63.23 	standardbreds which win money at licensed racetracks in the state; and
63.24 	(3) provide other financial incentives to encourage the horse breeding industry in 
63.25 	Minnesota.

63.26 	Sec. 14. Minnesota Statutes 2018, section 240.22, is amended to read:
63.27 	240.22 FINES.
63.28 	(a) The commission shall by rule establish a schedule of civil fines of up to $50,000 for 
63.29 	a class C licensee and up to $200,000 for a class A, B, or D licensee for violations of laws 
63.30 	related to horse racing or of the commission's rules. The schedule must be based on and 
64.1 	reflect the culpability, frequency and severity of the violator's actions. The commission may 
64.2 	impose a fine from this schedule on a licensee for a violation of those rules or laws relating 
64.3 	to horse racing. The fine is in addition to any criminal penalty imposed for the same violation.
64.4 	Except as provided in paragraph (b), fines may be appealed to the commission according 
64.5 	to its rules. Fines imposed by the commission must be paid to the commission and except 
64.6 	as provided in paragraph (c), forwarded to the commissioner of management and budget 
64.7 	for deposit in the state treasury and credited to a racing and card-playing regulation account 
64.8 	in the special revenue fund and appropriated to the commission to distribute in the form of 
64.9 	grants, contracts, or expenditures to support racehorse adoption, retirement, and repurposing.
64.10 	(b) If the commission issues a fine in excess of $5,000 $10,000, the license holder has 
64.11 	the right to request a contested case hearing under chapter 14, to be held as set forth in 
64.12 	Minnesota Rules, chapter 1400. The appeal of a fine must be made in writing to the 
64.13 	commission by certified mail or personal service. An appeal sent by certified mail must be 
64.14 	postmarked within ten days after the license holder receives the fine order from the 
64.15 	commission. An appeal sent by personal service must be received by the commission within 
64.16 	ten days after the license holder receives the fine order from the commission.
64.17 	(c) If the commission is the prevailing party in a contested case proceeding, the 
64.18 	commission may recover, from amounts to be forwarded under paragraph (a), reasonable 
64.19 	attorney fees and costs associated with the contested case.

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

64.21 	Sec. 15. Minnesota Statutes 2018, section 240.27, is amended to read:
64.22 	240.27 EXCLUSION OF CERTAIN PERSONS.
64.23 		Subdivision 1.Persons excluded. The commission may exclude from any and all licensed 
64.24 	racetracks in the state a person who:
64.25 	(1) has been convicted of a felony under the laws of any state or the United States;
64.26 	(2) has had a license suspended, revoked, or denied by the commission or by the racing 
64.27 	authority of any other jurisdiction; or
64.28 	(3) is determined by the commission, on the basis of evidence presented to it, to be a 
64.29 	threat to the public safety or the integrity of racing or card playing in Minnesota.
64.30 		Subd. 2.Hearing; appeal. An order to exclude a an unlicensed person from any or all 
64.31 	licensed racetracks in the state must be made by the commission at following a public 
64.32 	hearing of which the person to be excluded must have had at least five days' notice. If present 
65.1 	at the hearing, the person must be permitted to show cause why the exclusion should not 
65.2 	be ordered. An appeal of the order may be made in the same manner as other appeals under 
65.3 	section 240.20.
65.4 		Subd. 3.Notice to racetracks. Upon issuing an order excluding a person from any or 
65.5 	all licensed racetracks, the commission shall send a copy of the order to the excluded person 
65.6 	and to all racetracks or teleracing facilities named in it, along with other information as it 
65.7 	deems necessary to permit compliance with the order.
65.8 		Subd. 4.Prohibitions. It is a gross misdemeanor for a person named in an exclusion 
65.9 	order to enter, attempt to enter, or be on the premises of a racetrack named in the order 
65.10 	while it is in effect, and for a person licensed to conduct racing or operate a racetrack 
65.11 	knowingly to permit an excluded person to enter or be on the premises.
65.12 		Subd. 5.Exclusions by racetrack. The holder of a license to conduct racing may eject 
65.13 	and exclude from its premises any licensee or any other person who is in violation of any 
65.14 	state law or commission rule or order or who is a threat to racing integrity or the public 
65.15 	safety. A person so excluded from racetrack premises may appeal the exclusion to the 
65.16 	commission and must be given a public hearing on the appeal upon request. At the hearing 
65.17 	the person must be given the opportunity to show cause why the exclusion should not have 
65.18 	been ordered. If the commission after the hearing finds that the integrity of racing and the 
65.19 	public safety do not justify the exclusion, it shall order the racetrack making the exclusion 
65.20 	to reinstate or readmit the person. An appeal of a commission order upholding the exclusion 
65.21 	is governed by section 240.20. A licensed racetrack may eject and exclude from its premises 
65.22 	any person for any lawful reason. If a licensed racetrack excludes a person for a suspected 
65.23 	or potential violation of law or rule, or if a licensed racetrack excludes any person for more 
65.24 	than five days, the licensed racetrack shall provide the person's name and reason for the 
65.25 	exclusion to the commission within 72 hours.

65.26 	ARTICLE 5
65.27 	GAMBLING CONTROL BOARD

65.28 	Section 1. Minnesota Statutes 2018, section 349.12, subdivision 2, is amended to read:
65.29 		Subd. 2.Active member. "Active member" means a member:
65.30 	(1) who has paid all dues to the organization,;
65.31 	(2) who is 18 years of age or older,;
65.32 	(3) who has equal voting rights with all other members,;
66.1 	(4) who has equal opportunity to be an elected officer,;
66.2 	(5) who has equal right and responsibilities of attendance at the regularly scheduled 
66.3 	meetings of the organization,;
66.4 	(6) whose name and membership origination date appear with the member's knowledge 
66.5 	and consent on a list of members of the organization,; and
66.6 	(7) who has been a member of the organization for at least six months the most recent 
66.7 	90 days.

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

66.9 	Sec. 2. Minnesota Statutes 2018, section 349.17, subdivision 6, is amended to read:
66.10 		Subd. 6.Conduct of bingo. The price of a face played on an electronic bingo device 
66.11 	may not be less than the price of a face on a bingo paper sheet sold for the same game at 
66.12 	the same occasion. Bingo gift certificates must only be sold for face value. A game of bingo 
66.13 	begins with the first letter and number called or displayed. Each player must cover, mark, 
66.14 	or activate the numbers when bingo numbers are randomly selected and announced or 
66.15 	displayed to the players. The game is won when a player, using bingo paper, bingo hard 
66.16 	card, or a facsimile of a bingo paper sheet, has completed, as described in the bingo program, 
66.17 	a previously designated pattern or previously determined requirements of the game and 
66.18 	declared bingo. A bingo pattern or bingo game requirement may not be completed with 
66.19 	fewer than three bingo numbers having been drawn, unless the game being played is a 
66.20 	cover-none game. The game is completed when a winning card, sheet, or facsimile is verified 
66.21 	and a prize awarded pursuant to subdivision 3.

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

66.23 	Sec. 3. Minnesota Statutes 2018, section 349.181, subdivision 5, is amended to read:
66.24 		Subd. 5.Lessor's immediate family. The lessor's immediate family may not participate 
66.25 	directly or indirectly as a player in a pull-tab, a tipboard, ora paddlewheel, or an electronic 
66.26 	linked bingo game conducted at that premises.

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

66.28 	Sec. 4. Minnesota Statutes 2018, section 349.19, subdivision 1, is amended to read:
66.29 		Subdivision 1.Required record of receipts. (a) A licensed organization must keep a 
66.30 	record of each occasion on which it conducts gambling, including each bingo occasion and 
66.31 	each day on which other forms of lawful gambling are conducted. The record must include 
67.1 	gross receipts, quantities of free plays if any, expenses, prizes, and gross profit. The board 
67.2 	may by rule provide for the methods by which expenses are documented.
67.3 	(b) In the case of bingo,:
67.4 	(1) gross receipts must be compared to the checkers' records for the occasion by a person 
67.5 	who did not sell cards for the occasion.; and
67.6 	(2) the organization must keep a bingo gift certificate log showing each bingo gift 
67.7 	certificate number, the face value, the date sold, and the date redeemed.
67.8 	(c) Separate records must be kept for bingo and all other forms of lawful gambling.

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

67.10 	Sec. 5. Minnesota Statutes 2018, section 349.19, subdivision 2, is amended to read:
67.11 		Subd. 2.Accounts. (a) Gross receipts from lawful gambling by each organization must 
67.12 	be segregated from all other revenues of the conducting organization and placed in a separate 
67.13 	gambling bank account.
67.14 	(b) All expenditures for allowable expenses, taxes, and lawful purposes must be made 
67.15 	from the separate account except (1) in the case of expenditures previously approved by 
67.16 	the organization's membership for emergencies as defined by board rule, or (2) when 
67.17 	restricted to one electronic fund transaction for the payment of taxes for the organization 
67.18 	as a whole, the organization may transfer the amount of taxes related to the conduct of 
67.19 	gambling to the general account at the time when due and payable.
67.20 	(c) The name and address of the bank, the account number for the separate account, and 
67.21 	the names of organization members authorized as signatories on the separate account must 
67.22 	be provided to the board when the application is submitted. Changes in the information 
67.23 	must be submitted to the board at least ten days before the change is made.
67.24 	(d) Except as provided in paragraph (e), gambling receipts must be deposited into the 
67.25 	gambling bank account within four business days of completion of the bingo occasion, deal, 
67.26 	or game from which they are received.
67.27 	(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of the 
67.28 	deal is sold or the organization does not continue the play of the deal during the next 
67.29 	scheduled period of time in which the organization will conduct pull-tabs.
67.30 	(2) A tipboard game is considered complete when the seal on the game flare is uncovered 
67.31 	or the organization does not continue the play of the deal during the next scheduled period 
67.32 	of time in which the organization will conduct tipboards.
68.1 	(e) Gambling receipts from electronic gambling must be recorded on a daily basis and 
68.2 	deposited into the gambling bank account:
68.3 	(1) when the total net receipts from all electronic games at the premises reach the sum 
68.4 	of $2,000 or on or before; and
68.5 	(2) within four business days of the first day of the month immediately following the 
68.6 	month during which the receipts were generated, whichever occurs first.
68.7 	(f) Deposit records must be sufficient to allow determination of deposits made from 
68.8 	each bingo occasion, deal, or game at each permitted premises.
68.9 	(g) The person who accounts for gambling gross receipts and profits may not be the 
68.10 	same person who accounts for other revenues of the organization.

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

68.12 	ARTICLE 6
68.13 	STATE BOARD OF ACCOUNTANCY

68.14 	Section 1. Minnesota Statutes 2018, section 326A.01, subdivision 2, is amended to read:
68.15 		Subd. 2.Attest. "Attest" means providing any of the following services:
68.16 	(1) an audit or other engagement performed in accordance with the Statements on 
68.17 	Auditing Standards (SAS);
68.18 	(2) an audit or other engagement performed in accordance with the Generally Accepted 
68.19 	Government Auditing Standards (GAGAS);
68.20 	(3) a review of a financial statement performed in accordance with the Statements on 
68.21 	Standards for Accounting and Review Services (SSARS);
68.22 	(3) (4) an examination of prospective financial information performed in accordance 
68.23 	with the Statements on Standards for Attestation Engagements (SSAE);
68.24 	(4) (5) an engagement performed in accordance with the standards of the Public Company 
68.25 	Accounting Oversight Board (PCAOB); and
68.26 	(5) (6) an examination, review, or agreed-upon procedures engagement performed in 
68.27 	accordance with SSAE, other than an examination described in clause (3).

68.28 	Sec. 2. Minnesota Statutes 2018, section 326A.04, subdivision 4, is amended to read:
68.29 		Subd. 4.Program of learning. Each licensee shall participate in a program of learning 
68.30 	designed to maintain professional competency. The program of learning must comply with 
69.1 	rules adopted by the board. The board may by rule create an exception to this requirement 
69.2 	for licensees who do not perform or offer to perform for the public one or more kinds of 
69.3 	services involving the use of accounting or auditing skills, including issuance of reports on 
69.4 	financial statements or of one or more kinds of: attest or compilation engagements,
69.5 	management advisory services, financial advisory services, or consulting services, or the 
69.6 	preparation of tax returns or the furnishing of advice on tax matters. A licensee granted such 
69.7 	an exception by the board must place the word "inactive" or "retired," if applicable, adjacent 
69.8 	to the CPA title on any business card, letterhead, or any other document or device, with the 
69.9 	exception of the licensee's certificate on which the CPA title appears.

69.10 	Sec. 3. Minnesota Statutes 2018, section 326A.04, subdivision 5, is amended to read:
69.11 		Subd. 5.Fee. (a) The board shall charge a fee for each application for initial issuance 
69.12 	or renewal of a certificate or temporary military certificate under this section as provided 
69.13 	in paragraph (b). The fee for the temporary military certificate is $100.
69.14 	(b) The board shall charge the following fees:
69.15 	(1) initial issuance of certificate, $150;
69.16 	(2) renewal of certificate with an active status, $100 per year;
69.17 	(3) initial CPA firm permits, except for sole practitioners, $100;
69.18 	(4) renewal of CPA firm permits, except for sole practitioners and those firms specified 
69.19 	in clause (17) (16), $35 per year;
69.20 	(5) initial issuance and renewal of CPA firm permits for sole practitioners, except for 
69.21 	those firms specified in clause (17) (16), $35 per year;
69.22 	(6) annual late processing delinquency fee for permit, certificate, or registration renewal 
69.23 	applications not received prior to expiration date, $50;
69.24 	(7) copies of records, per page, 25 cents;
69.25 	(8) registration of noncertificate holders, nonlicensees, and nonregistrants in connection 
69.26 	with renewal of firm permits, $45 per year;
69.27 	(9) applications for reinstatement, $20;
69.28 	(10) initial registration of a registered accounting practitioner, $50;
69.29 	(11) initial registered accounting practitioner firm permits, $100;
69.30 	(12) renewal of registered accounting practitioner firm permits, except for sole 
69.31 	practitioners, $100 per year;
70.1 	(13) renewal of registered accounting practitioner firm permits for sole practitioners, 
70.2 	$35 per year;
70.3 	(14) CPA examination application, $40;
70.4 	(15) (14) CPA examination, fee determined by third-party examination administrator;
70.5 	(16) (15) renewal of certificates with an inactive status, $25 per year; and
70.6 	(17) (16) renewal of CPA firm permits for firms that have one or more offices located 
70.7 	in another state, $68 per year; and
70.8 	(17) temporary military certificate, $100.

70.9 	Sec. 4. [326A.045] RETIRED STATUS.
70.10 		Subdivision 1.Retired status requirements. The board shall grant retired status to a 
70.11 	person who meets the following criteria:
70.12 	(1) is age 55 or older;
70.13 	(2) holds a current active license to practice public accounting under this chapter with 
70.14 	a license status of active, inactive, or exempt under Minnesota Rules, part 1105.3700;
70.15 	(3) declares that he or she is not practicing public accounting in any jurisdiction;
70.16 	(4) was in good standing with the board at the time the person last held a license under 
70.17 	this chapter; and
70.18 	(5) submits an application for retired status on a form provided by the board.
70.19 		Subd. 2.Retired status effect. Retired status is an honorific status. Retired status is not 
70.20 	a license to engage in the practice of public accounting. A person granted retired status shall 
70.21 	not perform or offer to perform services for which a license under this chapter is required.
70.22 		Subd. 3.Documentation of status. The board shall provide to a person granted retired 
70.23 	status a document stating that retired status has been granted.
70.24 		Subd. 4.Representation to the public. A person granted retired status may represent 
70.25 	themselves as "Certified Public Accountant - Retired," "CPA - Retired," "Retired Certified 
70.26 	Public Accountant," or "Retired CPA," but shall not represent themselves or allow themselves 
70.27 	to be represented to the public as a current licensee of the board.
70.28 		Subd. 5.Continuing education not required. A person is not required to comply with 
70.29 	continuing education requirements in section 326A.04, subdivision 4, to acquire or maintain 
70.30 	retired status.
71.1 		Subd. 6.Renewal not required. A person granted retired status is not required to renew 
71.2 	their registration or pay renewal fees to maintain retired status.
71.3 		Subd. 7.Change to active or inactive status. The board shall change a license status 
71.4 	from retired to active or inactive, if a person with retired status requests a status change and 
71.5 	meets requirements for reactivitation prescribed by rule.

71.6 	Sec. 5. Minnesota Statutes 2018, section 326A.08, subdivision 4, is amended to read:
71.7 		Subd. 4.Cease and desist orders. (a) The board, or the complaint committee if 
71.8 	authorized by the board, may issue and have served upon a certificate holder, a permit 
71.9 	holder, a registration holder, a person with practice privileges granted under section 326A.14, 
71.10 	a person who has previously been subject to a disciplinary order by the board, or an 
71.11 	unlicensed firm or person an order requiring the person or firm to cease and desist from the 
71.12 	act or practice constituting a violation of the statute, rule, or order. The order must be 
71.13 	calculated to give reasonable notice of the rights of the person or firm to request a hearing 
71.14 	and must state the reasons for the entry of the order. No order may be issued until an 
71.15 	investigation of the facts has been conducted pursuant to section 214.10.
71.16 	(b) Service of the order is effective when the order is served on the person, firm, or 
71.17 	counsel of record personally, or by certified mail to the most recent address provided to the 
71.18 	board for the person, firm, or counsel of record. may be by first class United States mail, 
71.19 	including certified United States mail, or overnight express mail service, postage prepaid 
71.20 	and addressed to the party at the party's last known address. Service by United States mail, 
71.21 	including certified mail, is complete upon placing the order in the mail or otherwise delivering 
71.22 	the order to the United States mail service. Service by overnight express mail service is 
71.23 	complete upon delivering the order to an authorized agent of the express mail service.
71.24 	(c) Unless otherwise agreed by the board, or the complaint committee if authorized by 
71.25 	the board, and the person or firm requesting the hearing, the hearing must be held no later 
71.26 	than 30 days after the request for the hearing is received by the board.
71.27 	(d) The administrative law judge shall issue a report within 30 days of the close of the 
71.28 	contested case hearing record, notwithstanding Minnesota Rules, part 1400.8100, subpart 
71.29 	3. Within 30 days after receiving the report and any exceptions to it, the board shall issue 
71.30 	a further order vacating, modifying, or making permanent the cease and desist orders as the 
71.31 	facts require.
71.32 	(e) If no hearing is requested within 30 days of service of the order, the order becomes 
71.33 	final and remains in effect until it is modified or vacated by the board.
72.1 	(f) If the person or firm to whom a cease and desist order is issued fails to appear at the 
72.2 	hearing after being duly notified, the person or firm is in default and the proceeding may 
72.3 	be determined against that person or firm upon consideration of the cease and desist order, 
72.4 	the allegations of which may be considered to be true.
72.5 	(g) In lieu of or in addition to the order provided in paragraph (a), the board may require 
72.6 	the person or firm to provide to the board a true and complete list of the person's or firm's 
72.7 	clientele so that they can, if deemed necessary, be notified of the board's action. Failure to 
72.8 	do so, or to provide an incomplete or inaccurate list, is an act discreditable.

72.9 	Sec. 6. Minnesota Statutes 2018, section 326A.08, subdivision 5, is amended to read:
72.10 		Subd. 5.Actions against persons or firms. (a) The board may, by order, deny, refuse 
72.11 	to renew, suspend, temporarily suspend, or revoke the application, or practice privileges, 
72.12 	registration or certificate of a person or firm; censure or reprimand the person or firm; 
72.13 	prohibit the person or firm from preparing tax returns or reporting on financial statements; 
72.14 	limit the scope of practice of any licensee; limit privileges under section 326A.14; refuse 
72.15 	to permit a person to sit for examination; or refuse to release the person's examination grades 
72.16 	if the board finds that the order is in the public interest and that, based on a preponderance 
72.17 	of the evidence presented, the person or firm:
72.18 	(1) has violated a statute, rule, or order that the board has issued or is empowered to 
72.19 	enforce;
72.20 	(2) has engaged in conduct or acts that are fraudulent, deceptive, or dishonest whether 
72.21 	or not the conduct or acts relate to performing or offering to perform professional services, 
72.22 	providing that the fraudulent, deceptive, or dishonest conduct or acts reflect adversely on 
72.23 	the person's or firm's ability or fitness to provide professional services;
72.24 	(3) has engaged in conduct or acts that are negligent or otherwise in violation of the 
72.25 	standards established by board rule, where the conduct or acts relate to providing professional 
72.26 	services, including in the filing or failure to file the licensee's income tax returns;
72.27 	(4) has been convicted of, has pled guilty or nolo contendere to, or has been sentenced 
72.28 	as a result of the commission of a felony or crime, an element of which is dishonesty or 
72.29 	fraud; has been shown to have or admitted to having engaged in acts or practices tending 
72.30 	to show that the person or firm is incompetent; or has engaged in conduct reflecting adversely 
72.31 	on the person's or firm's ability or fitness to provide professional services, whether or not 
72.32 	a conviction was obtained or a plea was entered or withheld and whether or not dishonesty 
72.33 	or fraud was an element of the conduct;
73.1 	(5) employed fraud or deception in obtaining a certificate, permit, registration, practice 
73.2 	privileges, renewal, or reinstatement or in passing all or a portion of the examination;
73.3 	(6) has had the person's or firm's permit, registration, practice privileges, certificate, 
73.4 	right to examine, or other similar authority revoked, suspended, canceled, limited, or not 
73.5 	renewed for cause, or has committed unprofessional acts for which the person or firm was 
73.6 	otherwise disciplined or sanctioned, including, but not limited to, being ordered to or agreeing 
73.7 	to cease and desist from prescribed conduct, in any state or any foreign country;
73.8 	(7) has had the person's or firm's right to practice before any federal, state, other 
73.9 	government agency, or Public Company Accounting Oversight Board revoked, suspended, 
73.10 	canceled, limited, or not renewed for cause, or has committed unprofessional acts for which 
73.11 	the person or firm was otherwise disciplined or sanctioned, including, but not limited to, 
73.12 	being ordered to or agreeing to cease and desist from prescribed conduct;
73.13 	(8) failed to meet any requirement for the issuance or renewal of the person's or firm's 
73.14 	certificate, registration or permit, or for practice privileges;
73.15 	(9) with respect to temporary suspension orders, has committed an act, engaged in 
73.16 	conduct, or committed practices that may result or may have resulted, in the opinion of the 
73.17 	board or the complaint committee if authorized by the board, in an immediate threat to the 
73.18 	public;
73.19 	(10) has engaged in any conduct reflecting adversely upon the person's or firm's fitness 
73.20 	to perform services while a licensee, individual granted privileges under section 326A.14, 
73.21 	or a person registered under section 326A.06, paragraph (b); or
73.22 	(11) has, prior to a voluntary surrender of a certificate or permit to the board, engaged 
73.23 	in conduct which at any time resulted in the discipline or sanction described in clause (6) 
73.24 	or (7).
73.25 	(b) In lieu of or in addition to any remedy provided in paragraph (a), the board, or the 
73.26 	complaint committee if authorized by the board, may require, as a condition of continued 
73.27 	possession of a certificate, a registration, or practice privileges, termination of suspension, 
73.28 	reinstatement of permit, registration of a person or firm or of practice privileges under 
73.29 	section 326A.14, a certificate, an examination, or release of examination grades, that the 
73.30 	person or firm:
73.31 	(1) submit to a peer review of the person's or firm's ability, skills, or quality of work, 
73.32 	conducted in a fashion and by persons, entity, or entities as required by the board; and
74.1 	(2) complete to the satisfaction of the board continuing professional education courses 
74.2 	specified by the board.
74.3 	(c) Service of the order is effective if the order is served on the person, firm, or counsel 
74.4 	of record personally or by certified mail to the most recent address provided to the board 
74.5 	for the person, firm, or counsel of record. may be by first class United States mail, including 
74.6 	certified United States mail, or overnight express mail service, postage prepaid and addressed 
74.7 	to the party at the party's last known address. Service by United States mail, including 
74.8 	certified mail, is complete upon placing the order in the mail or otherwise delivering the 
74.9 	order to the United States mail service. Service by overnight express mail service is complete 
74.10 	upon delivering the order to an authorized agent of the express mail service. The order shall 
74.11 	state the reasons for the entry of the order.
74.12 	(d) All hearings required by this subdivision must be conducted in accordance with 
74.13 	chapter 14 except with respect to temporary suspension orders as provided for in subdivision 
74.14 	6.
74.15 	(e) In addition to the remedies authorized by this subdivision, the board, or the complaint 
74.16 	committee if authorized by the board, may enter into an agreement with the person or firm 
74.17 	for corrective action and may unilaterally issue a warning to a person or firm.
74.18 	(f) The board shall not use agreements for corrective action or warnings in any situation 
74.19 	where the person or firm has been convicted of or pled guilty or nolo contendere to a felony 
74.20 	or crime and the felony or crime is the basis of the board's action against the person or firm, 
74.21 	where the conduct of the person or firm indicates a pattern of related violations of paragraph 
74.22 	(a) or the rules of the board, or where the board concludes that the conduct of the person or 
74.23 	firm will not be deterred other than by disciplinary action under this subdivision or 
74.24 	subdivision 4 or 6.
74.25 	(g) Agreements for corrective action may be used by the board, or the complaint 
74.26 	committee if authorized by the board, where the violation committed by the person or firm 
74.27 	does not warrant disciplinary action pursuant to this subdivision or subdivision 4 or 6, but 
74.28 	where the board, or the complaint committee if authorized by the board, determines that 
74.29 	corrective action is required to prevent further such violations and to otherwise protect the 
74.30 	public. Warnings may be used by the board, or the complaint committee if authorized by 
74.31 	the board, where the violation of the person or firm is de minimus, does not warrant 
74.32 	disciplinary action under this subdivision or subdivision 4 or 6, and does not require 
74.33 	corrective action to protect the public.
75.1 	(h) Agreements for corrective action must not be considered disciplinary action against 
75.2 	the person's or firm's application, permit, registration or certificate, or practice privileges 
75.3 	under section 326A.14. However, agreements for corrective action are public data. Warnings 
75.4 	must not be considered disciplinary action against the person's or firm's application, permit, 
75.5 	registration, or certificate or person's practice privileges and are private data.

75.6 	Sec. 7. Minnesota Statutes 2018, section 326A.08, is amended by adding a subdivision to 
75.7 	read:
75.8 		Subd. 10.Actions against lapsed license, certificate, or permit.  If a person's or firm's 
75.9 	permit, registration, practice privileges, license, certificate, or other similar authority lapses, 
75.10 	expires, is surrendered, withdrawn, terminated, canceled, limited, not renewed, or otherwise 
75.11 	becomes invalid, the board may institute a proceeding under this subdivision within two 
75.12 	years after the date the license, certificate, or permit was last effective and enter a revocation 
75.13 	or suspension order as of the last date on which the license, certificate, or permit was in 
75.14 	effect, or impose a civil penalty as provided for in subdivision 7.

75.15 	Sec. 8. Minnesota Statutes 2018, section 326A.10, is amended to read:
75.16 	326A.10 UNLAWFUL ACTS.
75.17 	(a) Only a licensee and individuals who have been granted practice privileges under 
75.18 	section 326A.14 may issue a report on financial statements of any person, firm, organization, 
75.19 	or governmental unit that results from providing attest services, or offer to render or render 
75.20 	any attest service. Only a certified public accountant, an individual who has been granted 
75.21 	practice privileges under section 326A.14, a CPA firm, or, to the extent permitted by board 
75.22 	rule, a person registered under section 326A.06, paragraph (b), may issue a report on financial 
75.23 	statements of any person, firm, organization, or governmental unit that results from providing 
75.24 	compilation services or offer to render or render any compilation service. These restrictions 
75.25 	do not prohibit any act of a public official or public employee in the performance of that 
75.26 	person's duties or prohibit the performance by any nonlicensee of other services involving 
75.27 	the use of accounting skills, including the preparation of tax returns, management advisory 
75.28 	services, and the preparation of financial statements without the issuance of reports on them. 
75.29 	Nonlicensees may prepare financial statements and issue nonattest transmittals or information 
75.30 	on them which do not purport to be in compliance with the Statements on Standards for 
75.31 	Accounting and Review Services (SSARS). Nonlicensees registered under section 326A.06, 
75.32 	paragraph (b), may, to the extent permitted by board rule, prepare financial statements and 
75.33 	issue nonattest transmittals or information on them.
76.1 	(b) Licensees and individuals who have been granted practice privileges under section 
76.2 	326A.14 performing attest or compilation services must provide those services in accordance 
76.3 	with professional standards. To the extent permitted by board rule, registered accounting 
76.4 	practitioners performing compilation services must provide those services in accordance 
76.5 	with standards specified in board rule.
76.6 	(c) A person who does not hold a valid certificate issued under section 326A.04 or a 
76.7 	practice privilege granted under section 326A.14 shall not use or assume the title "certified 
76.8 	public accountant," the abbreviation "CPA," or any other title, designation, words, letters, 
76.9 	abbreviation, sign, card, or device tending to indicate that the person is a certified public 
76.10 	accountant.
76.11 	(d) A firm shall not provide attest services or assume or use the title "certified public 
76.12 	accountants," the abbreviation "CPA's," or any other title, designation, words, letters, 
76.13 	abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless (1) 
76.14 	the firm has complied with section 326A.05, and (2) ownership of the firm is in accordance 
76.15 	with this chapter and rules adopted by the board.
76.16 	(e) A person or firm that does not hold a valid certificate or permit issued under section 
76.17 	326A.04 or 326A.05 or has not otherwise complied with section 326A.04 or 326A.05 as 
76.18 	required in this chapter shall not assume or use the title "certified accountant," "chartered 
76.19 	accountant," "enrolled accountant," "licensed accountant," "registered accountant," 
76.20 	"accredited accountant," "accounting practitioner," "public accountant," "licensed public 
76.21 	accountant," or any other title or designation likely to be confused with the title "certified 
76.22 	public accountant," or use any of the abbreviations "CA," "LA," "RA," "AA," "PA," "AP," 
76.23 	"LPA," or similar abbreviation likely to be confused with the abbreviation "CPA." The title 
76.24 	"enrolled agent" or "EA" may only be used by individuals so designated by the Internal 
76.25 	Revenue Service.
76.26 	(f) Persons registered under section 326A.06, paragraph (b), may use the title "registered 
76.27 	accounting practitioner" or the abbreviation "RAP." A person who does not hold a valid 
76.28 	registration under section 326A.06, paragraph (b), shall not assume or use such title or 
76.29 	abbreviation.
76.30 	(g) Except to the extent permitted in paragraph (a), nonlicensees may not use language 
76.31 	in any statement relating to the financial affairs of a person or entity that is conventionally 
76.32 	used by licensees in reports on financial statements or on an attest service. In this regard, 
76.33 	the board shall issue by rule safe harbor language that nonlicensees may use in connection 
76.34 	with such financial information. A person or firm that does not hold a valid certificate or 
77.1 	permit, or a registration issued under section 326A.04, 326A.05, or 326A.06, paragraph (b), 
77.2 	or has not otherwise complied with section 326A.04 or 326A.05 as required in this chapter 
77.3 	shall not assume or use any title or designation that includes the word "accountant" or 
77.4 	"accounting" in connection with any other language, including the language of a report, that 
77.5 	implies that the person or firm holds such a certificate, permit, or registration or has special 
77.6 	competence as an accountant. A person or firm that does not hold a valid certificate or 
77.7 	permit issued under section 326A.04 or 326A.05 or has not otherwise complied with section 
77.8 	326A.04 or 326A.05 as required in this chapter shall not assume or use any title or designation 
77.9 	that includes the word "auditor" in connection with any other language, including the 
77.10 	language of a report, that implies that the person or firm holds such a certificate or permit 
77.11 	or has special competence as an auditor. However, this paragraph does not prohibit any 
77.12 	officer, partner, member, manager, or employee of any firm or organization from affixing 
77.13 	that person's own signature to any statement in reference to the financial affairs of such firm 
77.14 	or organization with any wording designating the position, title, or office that the person 
77.15 	holds, nor prohibit any act of a public official or employee in the performance of the person's 
77.16 	duties as such.
77.17 	(h)(1) No person holding a certificate or registration or firm holding a permit under this 
77.18 	chapter shall use a professional or firm name or designation that is misleading about the 
77.19 	legal form of the firm, or about the persons who are partners, officers, members, managers, 
77.20 	or shareholders of the firm, or about any other matter. However, names of one or more 
77.21 	former partners, members, managers, or shareholders may be included in the name of a firm 
77.22 	or its successor.
77.23 	(2) A common brand name or network name part, including common initials, used by 
77.24 	a CPA firm in its name, is not misleading if the firm is a network firm as defined in the 
77.25 	American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct 
77.26 	in effect July 1, 2011 incorporated by reference in Minnesota Rules, part 1105.0250, and 
77.27 	when offering or rendering services that require independence under AICPA standards, the 
77.28 	firm must comply with the AICPA code's applicable standards on independence.
77.29 	(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification, 
77.30 	designation, degree, or license granted in a foreign country entitling the holder to engage 
77.31 	in the practice of public accountancy or its equivalent in that country, if:
77.32 	(1) the activities of the person or firm in this state are limited to the provision of 
77.33 	professional services to persons or firms who are residents of, governments of, or business 
77.34 	entities of the country in which the person holds the entitlement;
78.1 	(2) the person or firm performs no attest or compilation services and issues no reports 
78.2 	with respect to the information of any other persons, firms, or governmental units in this 
78.3 	state; and
78.4 	(3) the person or firm does not use in this state any title or designation other than the 
78.5 	one under which the person practices in the foreign country, followed by a translation of 
78.6 	the title or designation into English, if it is in a different language, and by the name of the 
78.7 	country.
78.8 	(j) No holder of a certificate issued under section 326A.04 may perform attest services 
78.9 	through any business form that does not hold a valid permit issued under section 326A.05.
78.10 	(k) No individual licensee may issue a report in standard form upon a compilation of 
78.11 	financial information through any form of business that does not hold a valid permit issued 
78.12 	under section 326A.05, unless the report discloses the name of the business through which 
78.13 	the individual is issuing the report, and the individual:
78.14 	(1) signs the compilation report identifying the individual as a certified public accountant;
78.15 	(2) meets the competency requirement provided in applicable standards; and
78.16 	(3) undergoes no less frequently than once every three years, a peer review conducted 
78.17 	in a manner specified by the board in rule, and the review includes verification that the 
78.18 	individual has met the competency requirements set out in professional standards for such 
78.19 	services.
78.20 	(l) No person registered under section 326A.06, paragraph (b), may issue a report in 
78.21 	standard form upon a compilation of financial information unless the board by rule permits 
78.22 	the report and the person:
78.23 	(1) signs the compilation report identifying the individual as a registered accounting 
78.24 	practitioner;
78.25 	(2) meets the competency requirements in board rule; and
78.26 	(3) undergoes no less frequently than once every three years a peer review conducted 
78.27 	in a manner specified by the board in rule, and the review includes verification that the 
78.28 	individual has met the competency requirements in board rule.
78.29 	(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from 
78.30 	preparing or presenting records or documents customarily prepared by an attorney or firm 
78.31 	of attorneys in connection with the attorney's professional work in the practice of law.
79.1 	(n) The board shall adopt rules that place limitations on receipt by a licensee or a person 
79.2 	who holds a registration under section 326A.06, paragraph (b), of:
79.3 	(1) contingent fees for professional services performed; and
79.4 	(2) commissions or referral fees for recommending or referring to a client any product 
79.5 	or service.
79.6 	(o) Anything in this section to the contrary notwithstanding, it shall not be a violation 
79.7 	of this section for a firm not holding a valid permit under section 326A.05 and not having 
79.8 	an office in this state to provide its professional services in this state so long as it complies 
79.9 	with the applicable requirements of section 326A.05, subdivision 1.

79.10 	ARTICLE 7
79.11 	VETERANS AND MILITARY AFFAIRS POLICY

79.12 	Section 1. [10.576] POW AND MIA RECOGNITION DAY.
79.13 	The third Friday in September of each year is designated as Prisoners of War (POW) 
79.14 	and Missing in Action (MIA) Recognition Day to honor and recognize the courage and 
79.15 	sacrifices of individuals from Minnesota who have been prisoners of war or who are missing 
79.16 	in action. Each year, the governor shall issue a proclamation honoring this observance.

79.17 	Sec. 2. [10.578] VETERANS SUICIDE AWARENESS DAY.
79.18 	The first Saturday of every October is designated Veterans Suicide Awareness Day. 
79.19 	Each year, the governor shall issue a proclamation honoring this observance.

79.20 	Sec. 3. [10.597] AMERICAN ALLIES DAY.
79.21 	(a) June 30 of each year is designated American Allies Day for the purpose of honoring 
79.22 	foreign-born persons who fought in conflicts around the world on behalf of and alongside 
79.23 	the United States armed forces.
79.24 	(b) Each year the governor shall issue a proclamation honoring this observance.
79.25 	(c) Schools are encouraged to offer instruction on the role of America's allies during its 
79.26 	military conflicts, including but not limited to sharing the stories of those who fought for 
79.27 	freedom and democracy against tyranny and despotism with special emphasis on those who 
79.28 	fought on behalf of American allies or alongside American armed forces and later emigrated 
79.29 	to Minnesota.

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

80.1 	Sec. 4. Minnesota Statutes 2018, section 196.05, subdivision 1, is amended to read:
80.2 		Subdivision 1.General duties. The commissioner shall:
80.3 	(1) act as the agent of a resident of the state having a claim against the United States for 
80.4 	benefits arising out of or by reason of service in the armed forces and prosecute the claim 
80.5 	without charge;
80.6 	(2) act as custodian of veterans' bonus records;
80.7 	(3) administer the laws relating to the providing of bronze flag holders at veterans' graves 
80.8 	for memorial purposes;
80.9 	(4) administer the laws relating to recreational or rest camps for veterans so far as 
80.10 	applicable to state agencies;
80.11 	(5) administer the state soldiers' assistance fund and veterans' relief fund and other funds 
80.12 	appropriated for the payment of bonuses or other benefits to veterans or for the rehabilitation 
80.13 	of veterans;
80.14 	(6) cooperate with national, state, county, municipal, and private social agencies in 
80.15 	securing to veterans and their dependents the benefits provided by national, state, and county 
80.16 	laws, municipal ordinances, or public and private social agencies;
80.17 	(7) provide necessary assistance where other adequate aid is not available to the dependent 
80.18 	family of a veteran while the veteran is hospitalized and after the veteran is released for as 
80.19 	long a period as is necessary as determined by the commissioner;
80.20 	(8) cooperate with United States governmental agencies providing compensation, 
80.21 	pensions, insurance, or other benefits provided by federal law, by supplementing the benefits 
80.22 	prescribed therein, when conditions in an individual case make it necessary;
80.23 	(9) assist dependent family members of military personnel who are called from reserve 
80.24 	status to extended federal active duty during a time of war or national emergency through 
80.25 	the state soldiers' assistance fund provided by section 197.03;
80.26 	(10) exercise other powers as may be authorized and necessary to carry out the provisions 
80.27 	of this chapter and chapter chapters 197, consistent with that chapter and 198;
80.28 	(11) provide information, referral, and counseling services to those veterans who may 
80.29 	have suffered adverse health conditions as a result of possible exposure to chemical agents; 
80.30 	and
80.31 	(12) in coordination with the Minnesota Association of County Veterans Service Officers, 
80.32 	develop a written disclosure statement for use by private providers of veterans benefits 
81.1 	services as required under section 197.6091. At a minimum, the written disclosure statement 
81.2 	shall include a signature line, contact information for the department, and a statement that 
81.3 	veterans benefits services are offered at no cost by federally chartered veterans service 
81.4 	organizations and by county veterans service officers.

81.5 	Sec. 5. Laws 2016, chapter 189, article 13, section 64, is amended to read:
81.6 	Sec. 64. MEMORIAL COMMEMORATING RECIPIENTS OF THE MEDAL OF 
81.7 	HONOR.
 81.8 		Subdivision 1.Medal of Honor Memorial on the State Capitol grounds. Subject to 
81.9 	approval by the Capitol Area Architectural and Planning Board, the commissioner of 
81.10 	administration shall place a memorial on the State Capitol grounds to honor Minnesotans 
81.11 	awarded the Medal of Honor.
81.12 		Subd. 2.Gifts and grants. The commissioner of veterans affairs may solicit gifts, grants, 
81.13 	or donations of any kind from any private or public source to carry out the purposes of this 
81.14 	section. A Medal of Honor Memorial account is created in the special revenue fund. The 
81.15 	account consists of money transferred by law to the account and any other money donated, 
81.16 	gifted, granted, allotted, or otherwise provided to the account. All gifts, grants, or donations 
81.17 	received by the commissioner shall be deposited in a Medal of Honor Memorial account in 
81.18 	the special revenue fund. Money in the account is annually appropriated to the commissioner 
81.19 	of administration for predesign, design, construction, and ongoing maintenance of the 
81.20 	memorial.
81.21 		Subd. 3.Restrictions. Money deposited in the Medal of Honor Memorial account is not 
81.22 	available until the commissioner of management and budget has determined an amount 
81.23 	sufficient to complete predesign of the memorial has been committed to the project from 
81.24 	nonstate sources. The commissioner of administration shall not begin construction on this 
81.25 	project until money in the account is sufficient to pay for all costs related to construction 
81.26 	and ongoing maintenance of the memorial.

81.27 	Sec. 6. PLAQUE.
 81.28 		Subdivision 1.Purpose. The state wishes to honor all Minnesota veterans who have 
81.29 	honorably and bravely served in the United States armed forces, both at home and abroad, 
81.30 	during World War I.
81.31 		Subd. 2.Plaque authorized. The commissioner of administration shall place a memorial 
81.32 	plaque in the court of honor on the Capitol grounds to recognize the valiant service of 
82.1 	Minnesota veterans who have honorably and bravely served in the United States armed 
82.2 	forces, both at home and abroad, during World War I. This plaque will replace the current 
82.3 	plaque honoring veterans who served abroad during World War I. The Capitol Area 
82.4 	Architectural and Planning Board shall solicit design submissions from the public. Each 
82.5 	design submission must include a commitment to furnish the plaque at no cost to the state. 
82.6 	The Capitol Area Architectural and Planning Board shall select a design from those submitted 
82.7 	to use as a basis for final production. The selected design must be approved by the 
82.8 	commissioner of veterans affairs and must be furnished by the person or group who submitted 
82.9 	the design at no cost to the state.

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

APPENDIX 

Repealed Minnesota Statutes: S2227-2 

3.9735 EVALUATION OF ECONOMIC DEVELOPMENT INCENTIVE PROGRAMS.Subdivision 1.Definitions. 
For purposes of this section, the terms defined in this section have the meanings given them. 

(a) "General incentive" means a state program, statutory provision, or tax expenditure, including tax credits, tax exemptions, tax deductions, grants, or loans, that is intended to encourage businesses to locate, expand, invest, or remain in Minnesota or to hire or retain employees in Minnesota. To be a general incentive, a state program, statutory provision, or tax expenditure must be funded by an appropriation from the general fund, and be available to multiple entities, projects, or associated projects or include eligibility criteria with the intent that it will be available to multiple entities, projects, or associated projects. 

(b) "Exclusive incentive" means a state program, statutory provision, tax expenditure, or section of a general incentive, including tax credits, tax exemptions, tax deductions, grants, or loans, that is intended to encourage a single specific entity, project, or associated projects to locate, expand, invest, or remain in Minnesota or to hire or retain employees in Minnesota. 

Subd. 2.Selection of general incentives for review; schedule for evaluation; report. 
Annually, the legislative auditor shall submit to the Legislative Audit Commission a list of three to five general incentives proposed for review. In selecting general incentives to include on this list, the legislative auditor may consider what the incentive will cost state and local governments in actual spending and foregone revenue currently or projected into the future, the legislature's need for information about a general incentive that has an upcoming expiration date, and the legislature's need for regular information on the results of all major general incentives. Annually, the Legislative Audit Commission will select at least one general incentive for the legislative auditor's evaluation. The legislative auditor will evaluate the selected general incentive or incentives, prepared according to the evaluation plan established under subdivision 4, and submit a written report to the Legislative Audit Commission. 

Subd. 3.Exclusive incentive schedule. 
The legislative auditor's schedule shall ensure that at least once every four years the legislative auditor will complete an analysis of best practices for exclusive incentives. 

Subd. 4.Evaluation plans. 
By February 1, 2016, the Legislative Audit Commission shall establish evaluation plans that identify elements that the legislative auditor must include in evaluations of a general incentive and an exclusive incentive. The Legislative Audit Commission may modify the evaluation plans as needed. 

353.505 STATE CONTRIBUTIONS; FORMER MERF DIVISION.
(a) On September 15, 2019, and annually thereafter, the state shall pay to the general employees retirement plan of the Public Employees Retirement Association, with respect to the former MERF division, $6,000,000. 

(b) On September 15, 2017, and September 15, 2018, the state shall pay to the general employees retirement plan of the Public Employees Retirement Association, with respect to the former MERF division, $16,000,000. 

(c) State contributions under this section end on September 15, 2031.