SF 3045

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 04/24/2025 09:20 a.m.

A bill for an act
relating to state government operations; establishing a biennial budget;
appropriating money for the legislature, certain constitutional offices, and state
agencies, the Minnesota Historical Society, the Minnesota Humanities Center,
certain retirement accounts, certain offices, departments, boards, commissions,
councils, general contingent account, and tort claims; transferring certain funds;
raising fees; making changes to policy provisions for state government operations
and local government policy; modifying state personnel management policies;
modifying business filing and fraud policies; requiring reports; amending Minnesota
Statutes 2024, sections 3.971, subdivisions 2, 8a, 9; 11A.24, by adding a
subdivision; 13.485, subdivision 1, by adding a subdivision; 13D.02, subdivisions
1, 4; 14.48, subdivisions 1, 2; 14.62, subdivisions 1, 2a, by adding a subdivision;
16A.152, subdivision 8; 16B.055, subdivision 1; 16B.335, subdivision 2; 16B.48,
subdivision 4; 16B.54, subdivision 2; 16B.97, subdivision 1; 16B.98, subdivisions
1, 4; 16B.981, subdivision 4; 16B.991, subdivision 2; 16C.05, by adding a
subdivision; 16C.137, subdivision 2; 16C.16, subdivisions 2, 6, 6a, 7; 16D.09,
subdivision 1; 43A.01, subdivision 3; 43A.02, subdivision 14; 43A.04, subdivisions
1, 4, 8; 43A.05, subdivision 3; 43A.08, subdivisions 1a, 4; 43A.11, subdivision 9;
43A.121; 43A.15, subdivisions 4, 7, 12, 14; 43A.17, subdivision 5; 43A.181,
subdivision 1; 43A.1815; 43A.19, subdivision 1; 43A.23, subdivisions 1, 2;
43A.231, subdivisions 3, 4, 6; 43A.24, subdivisions 1a, 2; 43A.27, subdivisions
2, 3; 43A.33, subdivision 3; 43A.346, subdivisions 2, 6; 43A.36, subdivision 1;
43A.421; 155A.23, by adding a subdivision; 155A.27, subdivision 2; 155A.2705,
subdivision 3; 155A.30, subdivision 2; 222.37, subdivision 1; 240.131, subdivision
7; 302A.153; 303.06, by adding a subdivision; 303.21; 308A.131, subdivision 2;
308B.215, subdivision 2; 317A.151, subdivision 2; 321.0206; 322C.0201,
subdivision 4; 322C.0802; 323A.0101; 326.05; 326.10, subdivisions 1, 2, 10;
326.111, subdivisions 3, 4, 5, by adding a subdivision; 326A.03, subdivision 6,
by adding subdivisions; 326A.14; 331A.10, subdivision 2; 349A.01, by adding a
subdivision; 349A.06, subdivisions 2, 4, 11; 367.36, subdivision 1; 383C.035;
412.02, subdivision 3; 412.591, subdivision 3; 466.01, subdivision 1; 477A.017,
subdivision 3; 609.48, subdivision 1; Laws 2023, chapter 62, article 1, sections
11, subdivision 2; 13; proposing coding for new law in Minnesota Statutes, chapters
1; 15; 16B; 300; 383A; 471; repealing Minnesota Statutes 2024, sections 16B.328,
subdivision 2; 16B.45; 16C.36; 43A.315; 43A.317, subdivisions 1, 2, 3, 5, 6, 7,
8, 9, 10, 12; 43A.318, subdivisions 1, 2, 4, 5; 211B.06; 211B.08; 383C.07; 383C.74,
subdivisions 1, 2, 3, 4; 471.9998; Laws 2024, chapter 120, article 3, section 2;
Minnesota Rules, part 1105.7900, item D.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

STATE GOVERNMENT AND ELECTIONS APPROPRIATIONS

Section 1. new text begin STATE GOVERNMENT AND ELECTIONS APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2026" and "2027" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
is fiscal years 2026 and 2027.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin LEGISLATURE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 107,228,000 new text end

new text begin $ new text end

new text begin 113,066,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions. The base for this appropriation
is $111,377,000 in fiscal year 2028 and each
fiscal year thereafter.
new text end

new text begin Subd. 2. new text end new text begin Senate new text end

new text begin 38,238,000 new text end

new text begin 39,690,000 new text end

new text begin Subd. 3. new text end new text begin House of Representatives new text end

new text begin 36,922,000 new text end

new text begin 39,985,000 new text end

new text begin The base for this appropriation is $38,296,000
in fiscal year 2028 and each fiscal year
thereafter.
new text end

new text begin Subd. 4. new text end new text begin Legislative Coordinating Commission new text end

new text begin 32,068,000 new text end

new text begin 33,391,000 new text end

new text begin new text begin Legislative Auditor. new text end $12,076,000 the first
year and $12,567,000 the second year are for
the Office of the Legislative Auditor.
new text end

new text begin new text begin Revisor of Statutes. new text end $9,094,000 the first year
and $9,466,000 the second year are for the
Office of the Revisor of Statutes.
new text end

new text begin new text begin Legislative Reference Library. new text end $2,278,000
the first year and $2,369,000 the second year
are for the Legislative Reference Library.
new text end

new text begin new text begin Legislative Budget Office. new text end $2,800,000 the
first year and $2,965,000 the second year are
for the Legislative Budget Office.
new text end

Sec. 3. new text begin GOVERNOR AND LIEUTENANT GOVERNOR new text end

new text begin $ new text end

new text begin 9,231,000 new text end

new text begin $ new text end

new text begin 9,231,000 new text end

new text begin (a) $19,000 each year is for necessary
expenses in the normal performance of the
governor's and lieutenant governor's duties for
which no other reimbursement is provided.
new text end

new text begin (b) By September 1 of each year, the
commissioner of management and budget shall
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over state government finance any
personnel costs incurred by the Offices of the
Governor and Lieutenant Governor that were
supported by appropriations to other agencies
during the previous fiscal year. The Office of
the Governor shall inform the chairs and
ranking minority members of the committees
before initiating any interagency agreements.
new text end

Sec. 4. new text begin STATE AUDITOR new text end

new text begin $ new text end

new text begin 14,493,000 new text end

new text begin $ new text end

new text begin 14,734,000 new text end

Sec. 5. new text begin ATTORNEY GENERAL new text end

new text begin $ new text end

new text begin 50,135,000 new text end

new text begin $ new text end

new text begin 50,432,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 46,719,000 new text end	new text begin 47,016,000 new text end
new text begin State Government Special Revenue new text end	new text begin 3,021,000 new text end	new text begin 3,021,000 new text end
new text begin Environmental new text end	new text begin 145,000 new text end	new text begin 145,000 new text end
new text begin Remediation new text end	new text begin 250,000 new text end	new text begin 250,000 new text end

new text begin The general fund base for this appropriation
is $46,657,000 in fiscal year 2029 and each
fiscal year thereafter.
new text end

Sec. 6. new text begin SECRETARY OF STATE new text end

new text begin $ new text end

new text begin 10,426,000 new text end

new text begin $ new text end

new text begin 10,426,000 new text end

new text begin The base for this appropriation is $10,356,000
in fiscal year 2028 and $10,426,000 in fiscal
year 2029.
new text end

Sec. 7. new text begin STATE BOARD OF INVESTMENT new text end

new text begin $ new text end

new text begin 139,000 new text end

new text begin $ new text end

new text begin 139,000 new text end

Sec. 8. new text begin ADMINISTRATIVE HEARINGS new text end

new text begin $ new text end

new text begin 11,110,000 new text end

new text begin $ new text end

new text begin 11,709,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 705,000 new text end	new text begin 715,000 new text end
new text begin Workers' Compensation new text end	new text begin 10,405,000 new text end	new text begin 10,994,000 new text end

Sec. 9. new text begin INFORMATION TECHNOLOGY SERVICES new text end

new text begin $ new text end

new text begin 10,939,000 new text end

new text begin $ new text end

new text begin 11,150,000 new text end

new text begin During the biennium ending June 30, 2027,
the Department of Information Technology
Services must not charge fees to a public
noncommercial educational television
broadcast station eligible for funding under
Minnesota Statutes, chapter 129D, for access
to the state broadcast infrastructure. If the
access fees not charged to public
noncommercial educational television
broadcast stations total more than $400,000
for the biennium, the office may charge for
access fees in excess of these amounts.
new text end

Sec. 10. new text begin ADMINISTRATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 37,579,000 new text end

new text begin $ new text end

new text begin 38,281,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Government and Citizen Services new text end

new text begin 18,310,000 new text end

new text begin 18,117,000 new text end

new text begin Council on Developmental Disabilities.
$222,000 each year is for the Council on
Developmental Disabilities.
new text end

new text begin State Agency Accommodation
Reimbursement. $200,000 each year may be
transferred to the accommodation account
established in Minnesota Statutes, section
16B.4805.
new text end

new text begin Office of Enterprise Translations.
$1,010,000 each year is for the Office of
Enterprise Translations. $100,000 each year
may be transferred to the language access
service account established in Minnesota
Statutes, section 16B.373.
new text end

new text begin new text begin Grants. new text end $250,000 the first year is for a grant
to the Minnesota Orchestra for arts education
musical performance in the schools of
Minnesota. Any unencumbered balance in the
first year does not cancel and is available for
the second year.
new text end

new text begin $220,000 the first year is for a grant to History
Theatre to perform a play celebrating Hmong
arts and culture.
new text end

new text begin Subd. 3. new text end new text begin Strategic Management Services new text end

new text begin 2,676,000 new text end

new text begin 2,716,000 new text end

new text begin Subd. 4. new text end new text begin Fiscal Agent new text end

new text begin 16,593,000 new text end

new text begin 17,448,000 new text end

new text begin The appropriations under this section are to
the commissioner of administration for the
purposes specified.
new text end

new text begin In-Lieu of Rent. new text end new text begin $12,139,000 the first year
and $12,994,000 the second year are for space
costs of the legislature and veterans
organizations, ceremonial space, and
statutorily free space.
new text end

new text begin new text begin Public Television. new text end (a) $1,550,000 each year
is for matching grants for public television.
new text end

new text begin (b) $250,000 each year is for public television
equipment grants under Minnesota Statutes,
section 129D.13.
new text end

new text begin (c) $250,000 each year is for block grants to
public television under Minnesota Statutes,
section 129D.13. Of this amount, up to three
percent is for the commissioner of
administration to administer the grants.
new text end

new text begin (d) The commissioner of administration must
consider the recommendations of the
Minnesota Public Television Association
before allocating the amounts appropriated in
paragraphs (a) and (b) for equipment or
matching grants.
new text end

new text begin new text begin Public Radio. new text end (a) $1,242,000 each year is for
community service grants to public
educational radio stations. This appropriation
may be used to disseminate emergency
information in foreign languages. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year. The Association of Minnesota
Public Educational Radio Stations may use up
to four percent of this appropriation for costs
that are directly related to and necessary for
the administration of these grants.
new text end

new text begin (b) $142,000 each year is for equipment grants
to public educational radio stations. This
appropriation may be used for the repair,
rental, purchase, upgrades of equipment and
software, including computer software,
applications, firmware, and equipment under
$500.
new text end

new text begin (c) $1,020,000 each year is for equipment
grants to Minnesota Public Radio, Inc.,
including upgrades to Minnesota's Emergency
Alert and AMBER Alert Systems.
new text end

new text begin (d) The appropriations in paragraphs (a) to (c)
may not be used for indirect costs claimed by
an institution or governing body.
new text end

new text begin (e) The commissioner of administration must
consider the recommendations of the
Association of Minnesota Public Educational
Radio Stations before awarding grants under
Minnesota Statutes, section 129D.14, using
the appropriations in paragraphs (a) and (b).
No grantee is eligible for a grant unless they
are a member of the Association of Minnesota
Public Educational Radio Stations on or before
July 1, 2025.
new text end

new text begin (f) Any unencumbered balance remaining the
first year for grants to public television or
public radio stations does not cancel and is
available for the second year.
new text end

Sec. 11. new text begin CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD new text end

new text begin $ new text end

new text begin 464,000 new text end

new text begin $ new text end

new text begin 472,000 new text end

Sec. 12. new text begin MINNESOTA MANAGEMENT AND BUDGET new text end

new text begin $ new text end

new text begin 51,688,000 new text end

new text begin $ new text end

new text begin 52,709,000 new text end

Sec. 13. new text begin REVENUE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 215,761,000 new text end

new text begin $ new text end

new text begin 217,073,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 211,501,000 new text end	new text begin 212,813,000 new text end
new text begin Health Care Access new text end	new text begin 1,760,000 new text end	new text begin 1,760,000 new text end
new text begin Highway User Tax Distribution new text end	new text begin 2,195,000 new text end	new text begin 2,195,000 new text end
new text begin Environmental new text end	new text begin 305,000 new text end	new text begin 305,000 new text end

new text begin The general fund base for this appropriation
is $212,297,000 in fiscal year 2028 and
$212,197,000 in fiscal year 2029 and each
fiscal year thereafter.
new text end

new text begin Subd. 2. new text end new text begin Tax System Management new text end

new text begin 179,976,000 new text end

new text begin 180,553,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 175,716,000 new text end	new text begin 176,293,000 new text end
new text begin Health Care Access new text end	new text begin 1,760,000 new text end	new text begin 1,760,000 new text end
new text begin Highway User Tax Distribution new text end	new text begin 2,195,000 new text end	new text begin 2,195,000 new text end
new text begin Environmental new text end	new text begin 305,000 new text end	new text begin 305,000 new text end

new text begin The general fund base for this appropriation
is $175,777,000 in fiscal year 2028 and
$175,677,000 in fiscal year 2029 and each
fiscal year thereafter.
new text end

new text begin new text begin Taxpayer Assistance and Tax Credit
Outreach Grants. new text end (a) $1,250,000 each year
is for taxpayer assistance grants under
Minnesota Statutes, section 270C.21,
subdivision 3. The unencumbered balance in
the first year does not cancel but is available
for the second year.
new text end

new text begin (b) $1,500,000 each year is for tax credit
outreach grants under Minnesota Statutes,
section 270C.21, subdivision 4.
new text end

new text begin Subd. 3. new text end new text begin Debt Collection Management new text end

new text begin 35,785,000 new text end

new text begin 36,520,000 new text end

Sec. 14. new text begin GAMBLING CONTROL new text end

new text begin $ new text end

new text begin 6,334,000 new text end

new text begin $ new text end

new text begin 6,334,000 new text end

new text begin These appropriations are from the lawful
gambling regulation account in the special
revenue fund.
new text end

Sec. 15. new text begin RACING COMMISSION new text end

new text begin $ new text end

new text begin 954,000 new text end

new text begin $ new text end

new text begin 954,000 new text end

new text begin These appropriations are from the racing and
card playing regulation accounts in the special
revenue fund.
new text end

Sec. 16. new text begin STATE LOTTERY new text end

new text begin Notwithstanding Minnesota Statutes, section
349A.10, subdivision 3, the State Lottery's
operating budget must not exceed $45,000,000
in fiscal year 2026 and $45,000,000 in fiscal
year 2027.
new text end

Sec. 17. new text begin AMATEUR SPORTS COMMISSION new text end

new text begin $ new text end

new text begin 401,000 new text end

new text begin $ new text end

new text begin 411,000 new text end

Sec. 18. new text begin COUNCIL FOR MINNESOTANS OF AFRICAN HERITAGE new text end

new text begin $ new text end

new text begin 938,000 new text end

new text begin $ new text end

new text begin 955,000 new text end

Sec. 19. new text begin COUNCIL ON LATINO AFFAIRS new text end

new text begin $ new text end

new text begin 829,000 new text end

new text begin $ new text end

new text begin 841,000 new text end

Sec. 20. new text begin COUNCIL ON ASIAN-PACIFIC MINNESOTANS new text end

new text begin $ new text end

new text begin 655,000 new text end

new text begin $ new text end

new text begin 665,000 new text end

Sec. 21. new text begin COUNCIL ON LGBTQIA2S+ MINNESOTANS new text end

new text begin $ new text end

new text begin 737,000 new text end

new text begin $ new text end

new text begin 745,000 new text end

Sec. 22. new text begin INDIAN AFFAIRS COUNCIL new text end

new text begin $ new text end

new text begin 1,381,000 new text end

new text begin $ new text end

new text begin 1,402,000 new text end

Sec. 23. new text begin MINNESOTA HISTORICAL SOCIETY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 26,763,000 new text end

new text begin $ new text end

new text begin 27,076,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Operations and Programs new text end

new text begin 26,442,000 new text end

new text begin 26,755,000 new text end

new text begin Notwithstanding Minnesota Statutes, section
138.668, the Minnesota Historical Society may
not charge a fee for its general tours at the
Capitol, but may charge fees for special
programs other than general tours.
new text end

new text begin Subd. 3. new text end new text begin Fiscal Agent new text end

new text begin 321,000 new text end

new text begin 321,000 new text end

new text begin (a) Global Minnesota new text end

new text begin 39,000 new text end

new text begin 39,000 new text end

new text begin (b) Minnesota Air National Guard Museum new text end

new text begin 17,000 new text end

new text begin 17,000 new text end

new text begin (c) Hockey Hall of Fame new text end

new text begin 100,000 new text end

new text begin 100,000 new text end

new text begin (d) Farmamerica new text end

new text begin 115,000 new text end

new text begin 115,000 new text end

new text begin (e) Minnesota Military Museum new text end

new text begin 50,000 new text end

new text begin 50,000 new text end

new text begin Any unencumbered balance remaining in this
subdivision the first year does not cancel but
is available for the second year of the
biennium.
new text end

Sec. 24. new text begin BOARD OF THE ARTS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 7,798,000 new text end

new text begin $ new text end

new text begin 7,808,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Operations and Services new text end

new text begin 859,000 new text end

new text begin 869,000 new text end

new text begin Subd. 3. new text end new text begin Grants Program new text end

new text begin 4,800,000 new text end

new text begin 4,800,000 new text end

new text begin Subd. 4. new text end new text begin Regional Arts Councils new text end

new text begin 2,139,000 new text end

new text begin 2,139,000 new text end

new text begin Any unencumbered balance remaining in this
section the first year does not cancel, but is
available for the second year.
new text end

new text begin Money appropriated in this section and
distributed as grants may only be spent on
projects located in Minnesota. A recipient of
a grant funded by an appropriation in this
section must not use more than ten percent of
the total grant for costs related to travel outside
the state of Minnesota.
new text end

Sec. 25. new text begin MINNESOTA HUMANITIES CENTER new text end

new text begin $ new text end

new text begin 970,000 new text end

new text begin $ new text end

new text begin 970,000 new text end

new text begin $500,000 each year is for Healthy Eating, Here
at Home grants under Minnesota Statutes,
section 138.912. No more than three percent
of the appropriation may be used for the
nonprofit administration of the program.
new text end

Sec. 26. new text begin BOARD OF ACCOUNTANCY new text end

new text begin $ new text end

new text begin 873,000 new text end

new text begin $ new text end

new text begin 887,000 new text end

Sec. 27. new text begin BOARD OF ARCHITECTURE ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN new text end

new text begin $ new text end

new text begin 928,000 new text end

new text begin $ new text end

new text begin 943,000 new text end

Sec. 28. new text begin BOARD OF COSMETOLOGIST EXAMINERS new text end

new text begin $ new text end

new text begin 3,659,000 new text end

new text begin $ new text end

new text begin 3,716,000 new text end

Sec. 29. new text begin BOARD OF BARBER EXAMINERS new text end

new text begin $ new text end

new text begin 459,000 new text end

new text begin $ new text end

new text begin 466,000 new text end

Sec. 30. new text begin GENERAL CONTINGENT ACCOUNTS new text end

new text begin $ new text end

new text begin 2,000,000 new text end

new text begin $ new text end

new text begin 500,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 1,500,000 new text end	new text begin -0- new text end
new text begin State Government Special Revenue new text end	new text begin 400,000 new text end	new text begin 400,000 new text end
new text begin Workers' Compensation new text end	new text begin 100,000 new text end	new text begin 100,000 new text end

new text begin (a) The general fund base for this
appropriation is $1,500,000 in fiscal year 2026
and each even-numbered fiscal year thereafter.
The base is $0 for fiscal year 2027 and each
odd-numbered fiscal year thereafter.
new text end

new text begin (b) The appropriations in this section may only
be spent with the approval of the governor
after consultation with the Legislative
Advisory Commission pursuant to Minnesota
Statutes, section 3.30.
new text end

new text begin (c) If an appropriation in this section for either
year is insufficient, the appropriation for the
other year is available for it.
new text end

new text begin (d) If a contingent account appropriation is
made in one fiscal year, it shall be considered
a biennial appropriation.
new text end

Sec. 31. new text begin TORT CLAIMS new text end

new text begin $ new text end

new text begin 161,000 new text end

new text begin $ new text end

new text begin 161,000 new text end

new text begin These appropriations are to be spent by the
commissioner of management and budget
according to Minnesota Statutes, section
3.736, subdivision 7. If the appropriation for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

Sec. 32. new text begin MINNESOTA STATE RETIREMENT SYSTEM new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 15,064,000 new text end

new text begin $ new text end

new text begin 15,154,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Combined Legislators and Constitutional Officers Retirement Plan new text end

new text begin 9,064,000 new text end

new text begin 9,154,000 new text end

new text begin Under Minnesota Statutes, sections 3A.03,
subdivision 2; 3A.04, subdivisions 3 and 4;
and 3A.115.
new text end

new text begin Subd. 3. new text end new text begin Judges Retirement Plan new text end

new text begin 6,000,000 new text end

new text begin 6,000,000 new text end

new text begin For transfer to the judges retirement fund
under Minnesota Statutes, section 490.123.
This transfer continues each fiscal year until
the judges retirement plan reaches 100 percent
funding as determined by an actuarial
valuation prepared according to Minnesota
Statutes, section 356.214.
new text end

Sec. 33. new text begin PUBLIC EMPLOYEES RETIREMENT ASSOCIATION new text end

new text begin $ new text end

new text begin 25,000,000 new text end

new text begin $ new text end

new text begin 25,000,000 new text end

new text begin (a) $9,000,000 each year is for direct state aid
to the public employees police and fire
retirement plan authorized under Minnesota
Statutes, section 353.65, subdivision 3b.
new text end

new text begin (b) State payments from the general fund to
the Public Employees Retirement Association
on behalf of the former MERF division
account are $16,000,000 on September 15,
2026, and $16,000,000 on September 15,
2027. These amounts are estimated to be
needed under Minnesota Statutes, section
353.505.
new text end

Sec. 34. new text begin TEACHERS RETIREMENT ASSOCIATION new text end

new text begin $ new text end

new text begin 29,831,000 new text end

new text begin $ new text end

new text begin 29,831,000 new text end

new text begin The amounts estimated to be needed are as
follows:
new text end

new text begin Special Direct State Aid. $27,331,000 each
year is for special direct state aid authorized
under Minnesota Statutes, section 354.436.
new text end

new text begin Special Direct State Matching Aid.
$2,500,000 each year is for special direct state
matching aid authorized under Minnesota
Statutes, section 354.435.
new text end

Sec. 35. new text begin ST. PAUL TEACHERS RETIREMENT FUND new text end

new text begin $ new text end

new text begin 14,827,000 new text end

new text begin $ new text end

new text begin 14,827,000 new text end

new text begin The amounts estimated to be needed for
special direct state aid to the first class city
teachers retirement fund association authorized
under Minnesota Statutes, section 354A.12,
subdivisions 3a and 3c.
new text end

Sec. 36. new text begin TRANSFERS; SECRETARY OF STATE.
new text end

new text begin Subdivision 1. new text end

new text begin VOTER account. new text end

new text begin The secretary of state, in consultation with the
commissioner of management and budget, must transfer $3,000,000 in fiscal year 2026 and
$3,000,000 in fiscal year 2027 from the general fund to the voting operations, technology,
and election resources account established under Minnesota Statutes, section 5.305. For
fiscal years 2028 to 2031, the commissioner of management and budget must include a
transfer of $3,000,000 each year from the general fund to the voting operations, technology,
and election resources account, when preparing each forecast from the effective date of this
section through the February 2027 forecast, under Minnesota Statutes, section 16A.103.
new text end

new text begin Subd. 2. new text end

new text begin VRA account. new text end

new text begin The secretary of state, in consultation with the commissioner
of management and budget, must transfer $25,000 in fiscal year 2026 and $25,000 in fiscal
year 2027 from the general fund to the Voting Rights Act cost sharing account established
under Minnesota Statutes, section 200.60, subdivision 1. For fiscal years 2028 to 2031, the
commissioner of management and budget must include a transfer of $25,000 each year from
the general fund to the Voting Rights Act cost sharing account, when preparing each forecast
from the effective date of this section through the February 2027 forecast, under Minnesota
Statutes, section 16A.103.
new text end

Sec. 37.

Laws 2023, chapter 62, article 1, section 11, subdivision 2, is amended to read:

Subd. 2. Government and Citizen Services

39,928,000

19,943,000

The base for this appropriation is $17,268,000
in fiscal year 2026 and $17,280,000 in fiscal
year 2027.

Council on Developmental Disabilities.
$222,000 each year is for the Council on
Developmental Disabilities.

State Agency Accommodation
Reimbursement. $200,000 each year may be
transferred to the accommodation account
established in Minnesota Statutes, section
16B.4805.

Disparity Study. $500,000 the first year and
$1,000,000 the second year are to conduct a
study on disparities in state procurement. This
is a onetime appropriation.

Grants Administration Oversight.
$2,411,000 the first year and $1,782,000 the
second year are for grants administration
oversight. The base for this appropriation in
fiscal year 2026 and each year thereafter is
$1,581,000.

$735,000 the first year and $201,000 the
second year are for a study to develop a road
map on the need for an enterprise grants
management system and to implement the
study's recommendation. This is a onetime
appropriation.

Risk Management Fund Property
Self-Insurance. $12,500,000 the first year is
for transfer to the risk management fund under
Minnesota Statutes, section 16B.85. This is a
onetime appropriation.

Office of Enterprise Translations.
$1,306,000 the first year and $1,159,000 the
second year are to establish the Office of
Enterprise Translations. $250,000 each year
may be transferred to the language access
service account established in Minnesota
Statutes, section 16B.373.

Capitol Mall Design Framework
Implementation. $5,000,000 the first year is
to implement the updated Capitol Mall Design
Framework, prioritizing the framework plans
identified in article 2, section 124. This
appropriation is available until deleted text begin December 31,
2024 deleted text end new text begin June 30, 2026 new text end .

Parking Fund. $3,255,000 the first year and
$1,085,000 the second year are for a transfer
to the state parking account to maintain the
operations of the parking and transit program
on the Capitol complex. These are onetime
transfers.

Procurement; Environmental Analysis and
Task Force. $522,000 the first year and
$367,000 the second year are to implement
the provisions of Minnesota Statutes, section
16B.312.

Center for Rural Policy and Development.
$100,000 the first year is for a grant to the
Center for Rural Policy and Development.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2024.
new text end

Sec. 38.

Laws 2023, chapter 62, article 1, section 13, is amended to read:

Sec. 13. MINNESOTA MANAGEMENT AND BUDGET

$

55,356,000

$

deleted text begin 58,057,000 deleted text end new text begin 56,357,000 new text end

The base for this appropriation is $47,831,000
in fiscal year 2026 and each fiscal year
thereafter.

(a) $13,489,000 the first year and $14,490,000
the second year are to stabilize and secure the
state's enterprise resource planning systems.
This amount is available until June 30, 2027.
The base for this appropriation is $6,470,000
in fiscal year 2026 and each fiscal year
thereafter.

(b) $1,000,000 each year is for administration
and staffing of the Children's Cabinet
established in Minnesota Statutes, section
4.045.

(c) $317,000 each year is to increase the
agency's capacity to proactively raise
awareness about the capital budget process
and provide technical assistance around the
requirements associated with the capital
budget process and receiving general fund or
general obligation bond funding for capital
projects, including compliance requirements
that must be met at various stages of capital
project development, with particular focus on
nonprofits, American Indian communities, and
communities of color that have traditionally
not participated in the state capital budget
process. This appropriation may also be used
to increase the agency's capacity to coordinate
with other state agencies regarding the
administration of grant agreements, programs,
and technical assistance related to capital
projects governed by the provisions of
Minnesota Statutes, chapter 16A, and other
applicable laws and statutes.

(d) $2,500,000 deleted text begin each deleted text end new text begin in fiscal new text end year deleted text begin is deleted text end new text begin 2024 and
$800,000 in fiscal year 2025 are new text end for
interagency collaboration to develop data
collection standards for race, ethnicity, gender
identity, and disability status and to develop
a roadmap and timeline for implementation
of the data standards across state government.
These funds may be transferred to other
agencies to support this work and may be used
to update computer systems to accommodate
revised data collection standards. This is a
onetime appropriation and is available until
June 30, 2027.

(e) $102,000 the first year and $60,000 the
second year are for the report required under
Minnesota Statutes, section 43A.15,
subdivision 14a, and for training and content
development relating to ADA Title II,
affirmative action, equal employment
opportunity, digital accessibility, inclusion,
disability awareness, and cultural competence.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

STATE GOVERNMENT POLICY

Section 1.

new text begin [1.1466] STATE FOSSIL.
new text end

new text begin Subdivision 1. new text end

new text begin Designation. new text end

new text begin Castoroides ohioensis, commonly known as the giant
beaver, or capa in Dakota and amik in Ojibwe, is designated as the official state fossil of
the state of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Photograph. new text end

new text begin A photograph of the giant beaver, approved by the commissioner
of natural resources, shall be preserved and may be displayed in the Office of the Secretary
of State.
new text end

Sec. 2.

Minnesota Statutes 2024, section 3.971, subdivision 2, is amended to read:

Subd. 2.

Staff; compensation.

(a) The legislative auditor shall establish a Financial
Audits Division deleted text begin and deleted text end new text begin , new text end a Program Evaluation Division new text begin , and a Special Reviews Division new text end to
fulfill the duties prescribed in this section.

(b) Each division may be supervised by a deputy auditor, appointed by the legislative
auditor, with the approval of the commission, for a term coterminous with the legislative
auditor's term. The deputy auditors may be removed before the expiration of their terms
only for cause. The legislative auditor and deputy auditors may each appoint an administrative
support specialist to serve at pleasure. The salaries and benefits of the legislative auditor,
deputy auditors, and administrative support specialists shall be determined by the
compensation plan approved by the Legislative Coordinating Commission. The deputy
auditors may perform and exercise the powers, duties and responsibilities imposed by law
on the legislative auditor when authorized by the legislative auditor.

(c) The legislative auditor, deputy auditors, and administrative support specialists shall
serve in the unclassified civil service, but all other employees of the legislative auditor shall
serve in the classified civil service. Compensation for employees of the legislative auditor
in the classified service shall be governed by a plan prepared by the legislative auditor and
approved by the Legislative Coordinating Commission and the legislature under section
3.855, subdivision 3.

(d) While in office, a person appointed deputy for the Financial Audit Division must
hold an active license as a certified public accountant.

(e) Notwithstanding section 43A.32, subdivisions 2 and 3, or any other law to the
contrary, an employee of the legislative auditor is prohibited from being a candidate for a
partisan elected public office.

Sec. 3.

Minnesota Statutes 2024, section 3.971, subdivision 8a, is amended to read:

Subd. 8a.

Special reviews.

The legislative auditor may conduct a special review to: (1)
fulfill a legal requirement; (2) investigate allegations that an individual or organization
subject to audit by the legislative auditor may not have complied with legal requirements new text begin ,
including but not limited to legal requirements new text end related to the use of public money, other
public resources, or government data classified as not public; (3) respond to a legislative
request for a review of an organization or program subject to audit by the legislative auditor;
deleted text begin or deleted text end (4) investigate allegations that an individual may not have complied with section 43A.38
or 43A.39 new text begin ; or (5) follow up on a prior special review to assess what changes have occurred new text end .

Sec. 4.

Minnesota Statutes 2024, section 3.971, subdivision 9, is amended to read:

Subd. 9.

Obligation to notify the legislative auditor.

deleted text begin The chief executive, financial,
or information officers deleted text end new text begin (a) An obligated officer new text end of an organization subject to audit under
this section must promptly notify the legislative auditor when the officer obtains information
indicating that public money or other public resources may have been used for an unlawful
purpose, or when the officer obtains information indicating that government data classified
by chapter 13 as not public may have been accessed by or provided to a person without
lawful authorization. As necessary, the legislative auditor shall coordinate an investigation
of the allegation with appropriate law enforcement officials.

new text begin (b) For purposes of this subdivision, "obligated officer" means the organization's:
new text end

new text begin (1) chief executive officer;
new text end

new text begin (2) deputy and assistant chief executive officers;
new text end

new text begin (3) chief administrative, chief financial, chief information, and chief investigative officers;
new text end

new text begin (4) heads of divisions, bureaus, departments, institutes, or other organizational units;
and
new text end

new text begin (5) board chair, where applicable.
new text end

Sec. 5.

Minnesota Statutes 2024, section 11A.24, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Contracts. new text end

new text begin Section 16C.05, subdivision 8, paragraph (a), clauses (2) and (5),
do not apply to contracts entered into by the State Board of Investment related to an
investment under this section.
new text end

Sec. 6.

Minnesota Statutes 2024, section 14.48, subdivision 1, is amended to read:

Subdivision 1.

Creation.

A state deleted text begin Office deleted text end new text begin Court new text end of Administrative Hearings is created.

Sec. 7.

Minnesota Statutes 2024, section 14.48, subdivision 2, is amended to read:

Subd. 2.

Chief administrative law judge.

(a) The deleted text begin office deleted text end new text begin court new text end shall be under the direction
of a chief administrative law judge who shall be learned in the law and appointed by the
governor, with the advice and consent of the senate, for a term ending on June 30 of the
sixth calendar year after appointment. Senate confirmation of the chief administrative law
judge shall be as provided by section 15.066.

(b) The chief administrative law judge may hear cases and, in accordance with chapter
43A, shall appoint a deputy chief judge and additional administrative law judges and
compensation judges to serve in the deleted text begin office deleted text end new text begin court new text end as necessary to fulfill the duties of the
deleted text begin Office deleted text end new text begin Court new text end of Administrative Hearings.

(c) The chief administrative law judge may delegate to a subordinate employee the
exercise of a specified statutory power or duty as deemed advisable, subject to the control
of the chief administrative law judge. Every delegation must be by written order filed with
the secretary of state. The chief administrative law judge is subject to the provisions of the
Minnesota Constitution, article VI, section 6, the jurisdiction of the Board on Judicial
Standards, and the provisions of the Code of Judicial Conduct.

(d) If a vacancy in the position of chief administrative law judge occurs, an acting or
temporary chief administrative law judge must be named as follows:

(1) at the end of the term of a chief administrative law judge, the incumbent chief
administrative law judge may, at the discretion of the appointing authority, serve as acting
chief administrative law judge until a successor is appointed; and

(2) if at the end of a term of a chief administrative law judge the incumbent chief
administrative law judge is not designated as acting chief administrative law judge, or if a
vacancy occurs in the position of chief administrative law judge, the deputy chief judge
shall immediately become temporary chief administrative law judge without further official
action.

(e) The appointing authority of the chief administrative law judge may appoint a person
other than the deputy chief judge to serve as temporary chief administrative law judge and
may replace any other acting or temporary chief administrative law judge designated pursuant
to paragraph (d), clause (1) or (2).

Sec. 8.

Minnesota Statutes 2024, section 14.62, subdivision 1, is amended to read:

Subdivision 1.

Writing required.

Every decision and order rendered by an agency in
a contested case shall be in writing, shall be based on the record and shall include the agency's
findings of fact and conclusions on all material issues. A decision or order that rejects or
modifies a finding of fact, conclusion, or recommendation contained in the report of the
administrative law judge required under sections 14.48 to 14.56, new text begin or requests remand under
subdivision 2b, new text end must include the reasons for each rejection deleted text begin or deleted text end new text begin , new text end modification new text begin , or request for
remand new text end . A copy of the decision and order shall be served upon each party or the party's
representative and the administrative law judge by first class mail.

Sec. 9.

Minnesota Statutes 2024, section 14.62, subdivision 2a, is amended to read:

Subd. 2a.

Administrative law judge decision final; exception.

Unless otherwise
provided by law, the report or order of the administrative law judge constitutes the final
decision in the case unless the agency modifies deleted text begin or rejects it under deleted text end new text begin , rejects, or requests remand
pursuant to new text end subdivision 1 within 90 days after the record of the proceeding closes under
section 14.61. When the agency fails to act within 90 days on a licensing case, the agency
must return the record of the proceeding to the administrative law judge for consideration
of disciplinary action. In all contested cases where the report or order of the administrative
law judge constitutes the final decision in the case, the administrative law judge shall issue
findings of fact, conclusions, and an order within 90 days after the hearing record closes
under section 14.61. Upon a showing of good cause by a party or the agency, the chief
administrative law judge may order a reasonable extension of either of the two 90-day
deadlines specified in this subdivision. The 90-day deadline will be tolled while the chief
administrative law judge considers a request for reasonable extension so long as the request
was filed and served within the applicable 90-day period.

Sec. 10.

Minnesota Statutes 2024, section 14.62, is amended by adding a subdivision to
read:

new text begin Subd. 2b. new text end

new text begin Agency request for remand. new text end

new text begin (a) An agency may request remand of a finding
of fact, conclusion of law, or recommendation within 45 days following the close of the
hearing record under section 14.61. Upon a showing of good cause by the agency, the chief
administrative law judge may consider a request for remand received after the deadline
specified in this provision.
new text end

new text begin (b) The requesting agency must state with specificity the reasons the agency is requesting
remand. If the agency requests remand for additional fact finding, the agency must state
with specificity that it is requesting remand for further fact finding, identify the issues for
which further fact finding is needed, and explain why further fact finding is necessary to
facilitate a fair and just final decision.
new text end

new text begin (c) The chief judge, or their designee, must accept a request for remand within ten
business days if:
new text end

new text begin (1) the agency rejects a recommendation to grant summary disposition;
new text end

new text begin (2) a party who had procedurally defaulted during the administrative proceedings seeks
to participate; and
new text end

new text begin (3) following remand from the Minnesota Court of Appeals or Minnesota Supreme
Court, or identification of a mathematical or clerical error, the agency identifies a need for
additional proceedings before the Court of Administrative Hearings.
new text end

new text begin (d) The chief judge, or their designee, may accept a request for remand within ten business
days for other reasons as justice requires and consistent with section 14.001.
new text end

new text begin (e) When a request for remand is accepted by the chief judge or their designee, the chief
judge or their designee must assign an administrative law judge to conduct further
proceedings under this chapter on the issues accepted for remand.
new text end

Sec. 11.

new text begin [15.0573] REPORTING ALLEGED MISUSE OF PUBLIC RESOURCES
OR DATA.
new text end

new text begin The commissioner or chief executive officer of each state department, board, commission,
office, or other agency must ensure that employee and nonemployee concerns about the
misuse of public money, other public resources, or government data are promptly directed
to one or more of the obligated officers identified in section 3.971, subdivision 9, or the
Office of the Legislative Auditor. The commissioner of management and budget must
develop a policy to operationalize and standardize the process under this section across state
agencies.
new text end

Sec. 12.

new text begin [15.442] LOCAL NEWS ORGANIZATION ADVERTISING BY STATE
AGENCIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Advertising" means paid communication transmitted via newspaper, magazine,
radio, television, social media, Internet, or other electronic means to make any person aware
of information relevant to an agency or a program or public awareness campaign operated
by an agency.
new text end

new text begin (c) "Agency" means any board, commission, authority, department, entity, or organization
of the executive branch of state government. Agency does not include the Minnesota State
Colleges and Universities or the Minnesota Zoo.
new text end

new text begin (d) "Local news organization" means a print, digital, or hybrid publication, or a broadcast
television or radio station, that:
new text end

new text begin (1) primarily serves the needs of the state of Minnesota or a regional, local, or ethnic
community within Minnesota;
new text end

new text begin (2) primarily has content derived from primary sources relating to news, information,
and current events;
new text end

new text begin (3) employs at least one journalist who resides in Minnesota and who regularly gathers,
collects, photographs, records, writes, or reports news or information that concerns local
events or other matters of local public interest;
new text end

new text begin (4) has a known Minnesota-based office of publication or broadcast station where business
is transacted during usual business hours with a local telephone number and must list contact
information in each updated publication or on their website; and
new text end

new text begin (5) has not received more than 50 percent of its gross receipts for the previous year from
political action committees or other entities described in section 527 of the Internal Revenue
Code, or from an organization that maintains section 501(c)(4), 501(c)(5), or 501(c)(6)
status under the Internal Revenue Code.
new text end

new text begin Subd. 2. new text end

new text begin State agency advertising. new text end

new text begin Agencies are encouraged to direct advertising
spending toward local news organizations when practicable and in support of the agency's
advertising goals. Advertising primarily targeted at out-of-state residents is not subject to
this section. Nothing in this section prevents a state agency from contracting with outside
vendors to conduct advertising work.
new text end

new text begin Subd. 3. new text end

new text begin Transparency. new text end

new text begin By February 1, 2026, and each year thereafter, all agencies
must publish the following information on their website for the previous fiscal year:
new text end

new text begin (1) the total advertising spending by the agency;
new text end

new text begin (2) the total percentage of advertising spending in local news organizations; and
new text end

new text begin (3) the total percentage of advertising spending in local newspapers.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025.
new text end

Sec. 13.

Minnesota Statutes 2024, section 16A.152, subdivision 8, is amended to read:

Subd. 8.

Report on budget reserve percentage.

(a) The commissioner of management
and budget shall develop and annually review a methodology for evaluating the adequacy
of the budget reserve based on the volatility of Minnesota's general fund tax structure. The
review must take into consideration relevant statistical and economic literature. After
completing the review, the commissioner may revise the methodology if necessary. The
commissioner must use the methodology to annually estimate the percentage of the current
biennium's general fund nondedicated revenues recommended as a budget reserve.

(b) By deleted text begin September deleted text end new text begin October new text end 30 of each year, the commissioner shall report the percentage
of the current biennium's general fund nondedicated revenue that is recommended as a
budget reserve to the chairs and ranking minority members of the senate Committee on
Finance, the house of representatives Committee on Ways and Means, and the senate and
house of representatives Committees on Taxes. The report must also specify:

(1) whether the commissioner revised the recommendation as a result of significant
changes in the mix of general fund taxes or the base of one or more general fund taxes;

(2) whether the commissioner revised the recommendation as a result of a revision to
the methodology; and

(3) any additional appropriate information.

Sec. 14.

Minnesota Statutes 2024, section 16B.055, subdivision 1, is amended to read:

Subdivision 1.

Federal Assistive Technology Act.

(a) The Department of Administration
is designated as the lead agency to carry out all the responsibilities under the new text begin 21st Century
new text end Assistive Technology Act deleted text begin of 1998 deleted text end , as provided by Public Law deleted text begin 108-364, as amended deleted text end new text begin 117-263 new text end .
The Minnesota Assistive Technology Advisory Council is established to fulfill the
responsibilities required by the new text begin 21st Century new text end Assistive Technology Act, as provided by
Public Law deleted text begin 108-364, as amended deleted text end new text begin 117-263 new text end . Because the existence of this council is required
by federal law, this council does not expire.

(b) Except as provided in paragraph (c), the governor shall appoint the membership of
the council as required by the new text begin 21st Century new text end Assistive Technology Act deleted text begin of 1998 deleted text end , as provided
by Public Law deleted text begin 108-364, as amended deleted text end new text begin 117-263 new text end . After the governor has completed the
appointments required by this subdivision, the commissioner of administration, or the
commissioner's designee, shall convene the first meeting of the council following the
appointments. Members shall serve two-year terms commencing July 1 of each odd-numbered
year, and receive the compensation specified by the new text begin 21st Century new text end Assistive Technology Act
deleted text begin of 1998 deleted text end , as provided by Public Law deleted text begin 108-364, as amended deleted text end new text begin 117-263 new text end . The members of the
council shall select their chair at the first meeting following their appointment.

(c) After consulting with the appropriate commissioner, the commissioner of
administration shall appoint a representative from:

(1) State Services for the Blind who has assistive technology expertise;

(2) vocational rehabilitation services who has assistive technology expertise;

(3) the Workforce Development Board; deleted text begin and
deleted text end

(4) the Department of Education who has assistive technology expertise deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) the Board on Aging.
new text end

Sec. 15.

Minnesota Statutes 2024, section 16B.335, subdivision 2, is amended to read:

Subd. 2.

Other projects.

All other capital projects for which a specific appropriation is
made new text begin , including projects that are exempt under subdivision 1, paragraph (b), new text end must not
proceed until the recipient undertaking the project has notified the chairs and ranking minority
members of the senate Capital Investment and Finance Committees and the house of
representatives Capital Investment and Ways and Means Committees that the work is ready
to begin. Notice is not required for:

(1) capital projects needed to comply with the Americans with Disabilities Act;

(2) asset preservation projects to which section 16B.307 applies;

(3) projects funded by an agency's operating budget; or

(4) projects funded by a capital asset preservation and replacement account under section
16A.632, a higher education asset preservation and replacement account under section
135A.046, or a natural resources asset preservation and replacement account under section
84.946.

Sec. 16.

Minnesota Statutes 2024, section 16B.48, subdivision 4, is amended to read:

Subd. 4.

Reimbursements.

new text begin (a) new text end Except as specifically provided otherwise by law, each
agency shall reimburse the general services revolving funds for the cost of all services,
supplies, materials, labor, and depreciation of equipment, including reasonable overhead
costs, which the commissioner is authorized and directed to furnish an agency. The cost of
all publications or other materials produced by the commissioner and financed from the
general services revolving fund must include reasonable overhead costs.

new text begin (b) new text end The commissioner of administration shall report the rates to be charged for the general
services revolving funds no later than deleted text begin July 1 deleted text end new text begin September 15 new text end each year to the chair of the
committee or division in the senate and house of representatives with primary jurisdiction
over the budget of the Department of Administration.

new text begin (c) new text end The commissioner of management and budget shall make appropriate transfers to
the revolving funds described in this section when requested by the commissioner of
administration. The commissioner of administration may make allotments, encumbrances,
and, with the approval of the commissioner of management and budget, disbursements in
anticipation of such transfers. In addition, the commissioner of administration, with the
approval of the commissioner of management and budget, may require an agency to make
advance payments to the revolving funds in this section sufficient to cover the agency's
estimated obligation for a period of at least 60 days.

new text begin (d) new text end All reimbursements and other money received by the commissioner of administration
under this section must be deposited in the appropriate revolving fund. Any earnings
remaining in the fund established to account for the documents service prescribed by section
16B.51 at the end of each fiscal year not otherwise needed for present or future operations,
as determined by the commissioners of administration and management and budget, must
be transferred to the general fund.

Sec. 17.

Minnesota Statutes 2024, section 16B.54, subdivision 2, is amended to read:

Subd. 2.

Vehicles.

(a) The commissioner may direct an agency to make a transfer of a
passenger motor vehicle or truck currently assigned to it. The transfer must be made to the
commissioner for use in the enterprise fleet. The commissioner shall reimburse an agency
whose motor vehicles have been paid for with funds dedicated by the constitution for a
special purpose and which are assigned to the enterprise fleet. The amount of reimbursement
for a motor vehicle is its average wholesale price as determined from the midwest edition
of the National Automobile Dealers Association official used car guide.

(b) To the extent that funds are available for the purpose, the commissioner may purchase
or otherwise acquire additional passenger motor vehicles and trucks necessary for the
enterprise fleet. The title to all motor vehicles assigned to or purchased or acquired for the
enterprise fleet is in the name of the Department of Administration.

(c) On the request of an agency, the commissioner may transfer to the enterprise fleet
any passenger motor vehicle or truck for the purpose of disposing of it. The department or
agency transferring the vehicle or truck must be paid for it from the motor pool revolving
account established by this section in an amount equal to two-thirds of the average wholesale
price of the vehicle or truck as determined from the midwest edition of the National
Automobile Dealers Association official used car guide.

(d) The commissioner shall provide for the uniform marking of all motor vehicles. Motor
vehicle colors must be selected from the regular color chart provided by the manufacturer
each year. The commissioner may further provide for the use of motor vehicles without
marking by:

(1) the governor;

(2) the lieutenant governor;

(3) the Division of Criminal Apprehension, the Division of Alcohol and Gambling
Enforcement, and arson investigators of the Division of Fire Marshal in the Department of
Public Safety;

(4) the Financial Institutions Division and investigative staff of the Department of
Commerce;

(5) the Division of Disease Prevention and Control of the Department of Health;

(6) the State Lottery;

(7) criminal investigators of the Department of Revenue;

(8) state-owned community service facilities in Direct Care and Treatment;

(9) the Office of the Attorney General;

(10) the investigative staff of the Gambling Control Board; deleted text begin and
deleted text end

(11) the Department of Corrections inmate community work crew program under section
352.91, subdivision 3g deleted text begin . deleted text end new text begin ; and
new text end

new text begin (12) the Office of Ombudsman for Long-Term Care.
new text end

Sec. 18.

new text begin [16B.851] STATE BUILDING RENEWABLE ENERGY; STORAGE;
ELECTRIC VEHICLE ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Energy storage" means the predesign, design, acquisition, construction, or installation
of technology which stores and delivers electric or thermal energy.
new text end

new text begin (c) "EVSE" means electric vehicle service equipment, including charging equipment
and associated infrastructure and site upgrades.
new text end

new text begin (d) "Renewable energy" has the meaning given in section 216B.2422, subdivision 1,
paragraph (c), and the same sources in thermal energy.
new text end

new text begin (e) "Renewable energy improvement" means the predesign, design, acquisition,
construction, or installation of a renewable energy production system or energy storage
equipment or system, and associated infrastructure and facilities, that is designed to result
in a demand-side net reduction in energy use by the state building's electrical, heating,
ventilating, air-conditioning, or hot water systems.
new text end

new text begin (f) "State agency" has the definition given in section 13.02, subdivision 17, or the
designated definition given in section 15.01 and includes the Office of Higher Education,
Housing Finance Agency, Pollution Control Agency, and Bureau of Mediation Services.
State agency includes agencies, boards, commissions, committees, councils, and authorities
as defined in section 15.012.
new text end

new text begin (g) "State building" means a building or facility owned by the state of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Account established. new text end

new text begin A state building renewable energy, storage, and electric
vehicle account is established in the special revenue fund to provide funds to state agencies
to:
new text end

new text begin (1) design, construct, and equip renewable energy improvement and renewable energy
storage projects at state buildings;
new text end

new text begin (2) purchase state fleet electric vehicles in accordance with section 16C.135;
new text end

new text begin (3) purchase and install EVSE and related infrastructure; and
new text end

new text begin (4) carry out management of the program by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Account management. new text end

new text begin The commissioner shall manage and administer the
state building renewable energy, storage, and electric vehicle account.
new text end

new text begin Subd. 4. new text end

new text begin Accepting funds. new text end

new text begin (a) The commissioner shall be responsible for making
application to the federal government on behalf of the state of Minnesota for state projects
eligible for elective payments under sections 6417 and 6418 of the Internal Revenue Code,
as added by Public Law 117-169, 136 Statute 1818, the Inflation Reduction Act of 2022.
new text end

new text begin (b) The commissioner may apply for, receive, and expend money made available from
federal, state, or other sources for the purposes of carrying out the duties in this section.
new text end

new text begin (c) Notwithstanding section 16A.72, all funds received under this subdivision are
deposited into the state building renewable energy, storage, and electric vehicle account
and appropriated to the commissioner for the purposes of subdivision 2 and as permitted
under this section.
new text end

new text begin (d) Money in the state building renewable energy, storage, and electric vehicle account
does not cancel and is available until expended.
new text end

new text begin Subd. 5. new text end

new text begin Applications. new text end

new text begin A state agency applying for state building renewable energy,
storage, EVSE, and electric fleet vehicle funds must submit an application to the
commissioner on a form, in the manner, and at the time prescribed by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Treatment of certain payments received from federal government. new text end

new text begin (a)
Federal payments received for eligible renewable energy improvement and storage projects,
and EVSE projects, made with appropriations from general obligation bonds, may be
transferred to the state bond fund, if consistent with federal treasury regulations.
new text end

new text begin (b) Federal payments received for eligible electric fleet vehicle purchases by the
Department of Administration's fleet division must be transferred to the motor pool revolving
account established in section 16B.54, subdivision 8.
new text end

new text begin (c) Federal payments received for eligible electric fleet vehicle purchases made directly
by a state agency shall be transferred to the fund from which the purchase was made.
new text end

new text begin (d) When obligated to fulfill financing agreements, federal payments received for eligible
renewable energy improvements shall be transferred to the appropriate agency.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 19.

Minnesota Statutes 2024, section 16B.97, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Grant agreement deleted text end new text begin Definitions new text end .

(a) new text begin For purposes of this section, the
following terms have the meanings given:
new text end

deleted text begin A grant agreement is deleted text end new text begin (1) "grant agreement" new text end new text begin means new text end a written instrument or electronic
document defining a legal relationship between a granting agency and a grantee when the
principal purpose of the relationship is to transfer cash or something of value to the recipient
to support a public purpose authorized by law instead of acquiring by professional or technical
contract, purchase, lease, or barter property or services for the direct benefit or use of the
granting agency deleted text begin . deleted text end new text begin ; and
new text end

new text begin (2) "grantee" means a potential or current recipient of a state-issued grant.
new text end

(b) This section does not apply to general obligation grants as defined by section 16A.695
deleted text begin and deleted text end new text begin , new text end capital project grants to political subdivisions as defined by section 16A.86 new text begin , or capital
project grants otherwise subject to section 16A.642, all of which are subject to the policies
and procedures adopted by the commissioner of management and budget and other
requirements specified in applicable law new text end .

Sec. 20.

Minnesota Statutes 2024, section 16B.98, subdivision 1, is amended to read:

Subdivision 1.

Limitation.

(a) As a condition of receiving a grant from an appropriation
of state funds, the recipient of the grant must agree deleted text begin to minimize deleted text end new text begin that new text end administrative costs new text begin
must be necessary and reasonable new text end . The granting agency is responsible for negotiating
appropriate limits to these costs so that the state derives the optimum benefit for grant
funding.

(b) This section does not apply to general obligation grants as defined by section 16A.695
and also capital project grants to political subdivisions as defined by section 16A.86 new text begin , or
capital project grants otherwise subject to section 16A.642 new text end .

Sec. 21.

Minnesota Statutes 2024, section 16B.98, subdivision 4, is amended to read:

Subd. 4.

Reporting of violations.

A state employee who discovers evidence of violation
of laws or rules governing grants is deleted text begin encouraged deleted text end new text begin required new text end to report the violation or suspected
violation to the employee's supervisor, the commissioner or the commissioner's designee,
or the legislative auditor. The legislative auditor shall report to the Legislative Audit
Commission if there are multiple complaints about the same agency. The auditor's report
to the Legislative Audit Commission under this section must disclose only the number and
type of violations alleged. An employee making a good faith report under this section has
the protections provided for under section 181.932, prohibiting the employer from
discriminating against the employee.

Sec. 22.

Minnesota Statutes 2024, section 16B.981, subdivision 4, is amended to read:

Subd. 4.

Agency authority to not award grant.

(a) If, while performing the required
steps in subdivision 2 and pursuant to sections 16B.97, 16B.98, and 16B.991, the agency
requires additional information to determine whether there is a substantial risk that the
potential grantee cannot or would not perform the required duties of the grant agreement,
the agency must give the grantee deleted text begin 30 business deleted text end new text begin 15 calendar new text end days within which the grantee
can respond to the agency for the purpose of satisfying the agency's concerns or work with
the agency to develop a plan to satisfy the concerns.

(b) If, after performing the required steps in subdivision 2 and pursuant to sections
16B.97, 16B.98, and 16B.991, and after reviewing any additional requested information
from the grantee, the agency still has concerns that there is a substantial risk that a potential
grantee cannot or would not perform the required duties under the grant agreement, the
agency must either create a plan to satisfy remaining concerns with the grantee or must not
award the grant.

(c) If, pursuant to paragraphs (a) and (b), the agency does not award a competitive,
single-source, or sole-source grant, the agency must provide notification to the grantee and
the commissioner of administration of the determination. The notification to the grantee
must include the agency's reason for postponing or forgoing the grant, including information
sufficient to explain and support the agency's decision, and notify the applicant of the process
for contesting the agency's decision deleted text begin with the agency and the applicant's options deleted text end under
paragraph (d). deleted text begin If the applicant contests the agency's decision no later than 15 business days
after receiving the notice, the agency must consider any additional written information
submitted by the grantee. The agency has 15 business days to consider this information,
during which the agency may reverse or modify the agency's initial decision to postpone
or forgo the grant.
deleted text end

(d) The final decision by an agency under paragraph (c) may be challenged as a contested
case under chapter 14. The contested case proceeding must be initiated within 30 deleted text begin business deleted text end new text begin
calendar new text end days of the date of written notification of a final decision by the agency.

(e) If, pursuant to paragraphs (a) and (b), the agency does not award a legislatively named
grant, the agency must delay award of the grant until adjournment of the next regular or
special legislative session for action from the legislature. The agency must provide
notification to the potential grantee, the commissioner of administration, and the chairs and
ranking minority members of the Ways and Means Committee in the house of representatives
and the chairs and ranking minority members of the Finance Committee in the senate. The
notification to the grantee must include the agency's reason for postponing or forgoing the
grant, including information sufficient to explain and support the agency's decision and
notify the applicant of the process for contesting the agency's decision new text begin under paragraph (d) new text end .
deleted text begin If the applicant contests the agency's decision no later than 15 business days after receiving
the notice, the agency must consider any additional written information submitted by the
grantee. The agency has 15 business days to consider this information, during which the
agency may reverse or modify the agency's initial decision to postpone or forgo the grant. deleted text end
The notification to the commissioner of administration and legislators must identify the
legislatively named potential grantee and the agency's reason for postponing or forgoing
the grant. After hearing the concerns of the agency, the legislature may reaffirm the award
of the grant or reappropriate the funds to a different legislatively named grantee. Based on
the action of the legislature, the agency must award the grant to the legislatively named
grantee. If the legislature does not provide direction to the agency on the disposition of the
grant, the funds revert to the original appropriation source.

Sec. 23.

Minnesota Statutes 2024, section 16B.991, subdivision 2, is amended to read:

Subd. 2.

Authority.

A grant agreement must by its terms permit the commissioner to
unilaterally terminate the grant agreement prior to completion if the commissioner determines
that further performance under the grant agreement would not serve agency purposes or
new text begin performance under the grant agreement new text end is not in the best interests of the state.

Sec. 24.

Minnesota Statutes 2024, section 16C.05, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Unenforceable terms. new text end

new text begin (a) A contract entered into by the state shall not contain
a term that:
new text end

new text begin (1) requires the state to defend, indemnify, or hold harmless another person or entity,
unless specifically authorized by statute;
new text end

new text begin (2) binds a party by terms and conditions that may be unilaterally changed by the other
party;
new text end

new text begin (3) requires mandatory arbitration;
new text end

new text begin (4) attempts to extend arbitration obligations to disputes unrelated to the original contract;
new text end

new text begin (5) construes the contract in accordance with the laws of a state other than Minnesota;
new text end

new text begin (6) obligates state funds in subsequent fiscal years in the form of automatic renewal as
defined in section 325G.56; or
new text end

new text begin (7) is inconsistent with chapter 13, the Minnesota Government Data Practices Act.
new text end

new text begin (b) If a contract is entered into that contains a term prohibited in paragraph (a), that term
shall be void and the contract is enforceable as if it did not contain that term.
new text end

new text begin (c) The commissioner shall post a copy of this section on its website.
new text end

Sec. 25.

Minnesota Statutes 2024, section 16C.137, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Report deleted text end new text begin Evaluation new text end .

(a) The commissioner of administration, in collaboration
with the commissioners of the Pollution Control Agency, the Departments of Agriculture,
Commerce, Natural Resources, and Transportation, and other state departments, must
evaluate the goals and directives established in this section and deleted text begin report deleted text end new text begin include new text end their findings
deleted text begin to the governor and the appropriate committees of the legislature by February 1 of each
odd-numbered year deleted text end new text begin in the public dashboard under section 16B.372 new text end . In the deleted text begin report deleted text end new text begin public
dashboard new text end , the commissioner must make recommendations for new or adjusted goals,
directives, or legislative initiatives, in light of the progress the state has made implementing
this section and the availability of new or improved technologies.

(b) The Department of Administration shall implement a fleet reporting and information
management system. Each department will use this management system to demonstrate its
progress in complying with this section.

Sec. 26.

Minnesota Statutes 2024, section 16C.16, subdivision 2, is amended to read:

Subd. 2.

Small business.

The commissioner shall adopt the size standards for deleted text begin "small
business" found in Code of Federal Regulations, title 49, section 26.65, deleted text end new text begin a small business new text end
for purposes of sections 16C.16 to 16C.21, 137.31, 137.35, 161.321, and 473.142, provided
that the business has its principal place of business in Minnesota. new text begin The commissioner may
use the definition for "small business" in the Code of Federal Regulations, title 49, section
26.65, or may adopt another standard.
new text end

Sec. 27.

Minnesota Statutes 2024, section 16C.16, subdivision 6, is amended to read:

Subd. 6.

Purchasing methods.

(a) The commissioner may award up to a 12 percent
preference for specified goods or services to small targeted group businesses.

(b) The commissioner may award a contract for goods, services, or construction directly
to a small business or small targeted group business without going through a competitive
solicitation process up to a total contract award value, including extension options, of
$100,000.

(c) The commissioner may designate a purchase of goods or services for award only to
small businesses or small targeted group businesses if the commissioner determines that at
least three small businesses or small targeted group businesses are likely to respond to a
solicitation.

(d) The commissioner, as a condition of awarding a construction contract or approving
a contract for professional or technical services, may set goals that require the prime
contractor to subcontract a portion of the contract to small businesses or small targeted
group businesses. The commissioner must establish a procedure for granting waivers from
the subcontracting requirement when qualified small businesses or small targeted group
businesses are not reasonably available. The commissioner may establish financial incentives
for prime contractors who exceed the goals for use of small business or small targeted group
business subcontractors and financial penalties for prime contractors who fail to meet goals
under this paragraph. deleted text begin The subcontracting requirements of this paragraph do not apply to
prime contractors who are small businesses or small targeted group businesses.
deleted text end

Sec. 28.

Minnesota Statutes 2024, section 16C.16, subdivision 6a, is amended to read:

Subd. 6a.

Veteran-owned small businesses.

(a) Except when mandated by the federal
government as a condition of receiving federal funds, the commissioner shall award up to
a 12 percent preference, but no less than the percentage awarded to any other group under
this section, on state procurement to certified small businesses that are majority-owned and
operated by veterans.

(b) The commissioner may award a contract for goods, services, or construction directly
to a veteran-owned small business without going through a competitive solicitation process
up to a total contract award value, including extension options, of $100,000.

(c) The commissioner may designate a purchase of goods or services for award only to
a veteran-owned small business if the commissioner determines that at least three
veteran-owned small businesses are likely to respond to a solicitation.

(d) The commissioner, as a condition of awarding a construction contract or approving
a contract for professional or technical services, may set goals that require the prime
contractor to subcontract a portion of the contract to a veteran-owned small business. The
commissioner must establish a procedure for granting waivers from the subcontracting
requirement when qualified veteran-owned small businesses are not reasonably available.
The commissioner may establish financial incentives for prime contractors who exceed the
goals for use of veteran-owned small business subcontractors and financial penalties for
prime contractors who fail to meet goals under this paragraph. deleted text begin The subcontracting
requirements of this paragraph do not apply to prime contractors who are veteran-owned
small businesses.
deleted text end

(e) The purpose of this designation is to facilitate the transition of veterans from military
to civilian life, and to help compensate veterans for their sacrifices, including but not limited
to their sacrifice of health and time, to the state and nation during their military service, as
well as to enhance economic development within Minnesota.

(f) Before the commissioner certifies that a small business is majority-owned and operated
by a veteran, the commissioner of veterans affairs must verify that the owner of the small
business is a veteran, as defined in section 197.447.

Sec. 29.

Minnesota Statutes 2024, section 16C.16, subdivision 7, is amended to read:

Subd. 7.

Economically disadvantaged areas.

(a) The commissioner may award up to
a 12 percent preference on state procurement to small businesses located in an economically
disadvantaged area.

(b) The commissioner may award a contract for goods, services, or construction directly
to a small business located in an economically disadvantaged area without going through
a competitive solicitation process up to a total contract award value, including extension
options, of $100,000.

(c) The commissioner may designate a purchase of goods or services for award only to
a small business located in an economically disadvantaged area if the commissioner
determines that at least three small businesses located in an economically disadvantaged
area are likely to respond to a solicitation.

(d) The commissioner, as a condition of awarding a construction contract or approving
a contract for professional or technical services, may set goals that require the prime
contractor to subcontract a portion of the contract to a small business located in an
economically disadvantaged area. The commissioner must establish a procedure for granting
waivers from the subcontracting requirement when qualified small businesses located in an
economically disadvantaged area are not reasonably available. The commissioner may
establish financial incentives for prime contractors who exceed the goals for use of
subcontractors that are small businesses located in an economically disadvantaged area and
financial penalties for prime contractors who fail to meet goals under this paragraph. deleted text begin The
subcontracting requirements of this paragraph do not apply to prime contractors who are
small businesses located in an economically disadvantaged area.
deleted text end

(e) A business is located in an economically disadvantaged area if:

(1) the owner resides in or the business is located in a county in which the median income
for married couples is less than 70 percent of the state median income for married couples;

(2) the owner resides in or the business is located in an area designated a labor surplus
area by the United States Department of Labor; or

(3) the business is a certified rehabilitation facility or extended employment provider as
described in chapter 268A.

(f) The commissioner may designate one or more areas designated as targeted
neighborhoods under section 469.202 or as border city enterprise zones under section
469.166 as economically disadvantaged areas for purposes of this subdivision if the
commissioner determines that this designation would further the purposes of this section.
If the owner of a small business resides or is employed in a designated area, the small
business is eligible for any preference provided under this subdivision.

(g) The Department of Revenue shall gather data necessary to make the determinations
required by paragraph (e), clause (1), and shall annually certify counties that qualify under
paragraph (e), clause (1). An area designated a labor surplus area retains that status for 120
days after certified small businesses in the area are notified of the termination of the
designation by the United States Department of Labor.

Sec. 30.

Minnesota Statutes 2024, section 16D.09, subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) When a debt is determined by a state agency to be
uncollectible, the debt may be written off by the state agency from the state agency's financial
accounting records and no longer recognized as an account receivable for financial reporting
purposes. A debt is considered to be uncollectible when (1) all reasonable collection efforts
have been exhausted, (2) the cost of further collection action will exceed the amount
recoverable, (3) the debt is legally without merit or cannot be substantiated by evidence,
(4) the debtor cannot be located, (5) the available assets or income, current or anticipated,
that may be available for payment of the debt are insufficient, (6) the debt has been
discharged in bankruptcy, (7) the applicable statute of limitations for collection of the debt
has expired, or (8) it is not in the public interest to pursue collection of the debt.

(b) Uncollectible debt must be reported by the state agency as part of its quarterly reports
to the commissioner of management and budget. The basis for the determination of the
uncollectibility of the debt must be maintained by the state agency. If an uncollectible debt
equals or exceeds $100,000, the agency shall notify the chairs and ranking minority members
of the legislative committees with jurisdiction over the state agency's budget at the time the
debt is determined to be uncollectible. The information reported shall contain the entity
associated with the uncollected debt, the amount of the debt, the revenue type, the reason
the debt is considered uncollectible, and the duration the debt has been outstanding. The
commissioner of management and budget shall report to the chairs and ranking minority
members of the legislative committees with jurisdiction over Minnesota Management and
Budget an annual summary of the number and dollar amount of debts determined to be
uncollectible during the previous fiscal year by deleted text begin October 31 deleted text end new text begin November 30 new text end of each year.
Determining that the debt is uncollectible does not cancel the legal obligation of the debtor
to pay the debt.

Sec. 31.

Minnesota Statutes 2024, section 43A.231, subdivision 3, is amended to read:

Subd. 3.

Procurement of a pharmacy benefit manager.

(a) Notwithstanding any law
to the contrary, the commissioner of management and budget shall procure a contract for
the services of a pharmacy benefit manager to administer the prescription drug benefit and
pharmacy benefit management services, effective January 1, 2023. new text begin For subsequent
procurements, if the commissioner intends to separate prescription drug benefit and pharmacy
benefit management services into multiple vendors or intends to fold prescription drug
benefits into the overall medical benefit, rather than a single full-service pharmacy benefit
manager, this section shall not apply.
new text end

(b) For the contract effective January 1, 2023, the commissioner shall conduct a reverse
auction as described in this section to select the pharmacy benefit manager and use a reverse
auction for procurement of subsequent pharmacy benefit manager contracts as provided in
subdivision 5, paragraph (b).

(c) In consultation with the technology platform vendor selected under subdivision 4,
the commissioner shall specify the terms of a participant bidding agreement that all bidders
must accept as a prerequisite for participation in the reverse auction process, including:

(1) common definitions;

(2) prescription drug classifications;

(3) retail pricing rules, including maximum allowable cost price lists and dispensing
fees; and

(4) any other contract terms the commissioner deems necessary to further the purpose
of this section as specified under subdivision 2.

(d) A pharmacy benefit manager who submits a bid under this subdivision must provide
the commissioner access to complete pharmacy claims data necessary for the commissioner
to conduct the reverse auction and to carry out administrative and management duties.

(e) The terms of a contract entered into under this subdivision shall not be modified by
the pharmacy benefit manager except with the approval of the commissioner.

(f) The commissioner may structure the contract awarded under this subdivision to pay
the cost of the technology platform and the associated professional services contracted for
under this subdivision by assessing a fee per prescription to be paid directly by the pharmacy
benefit manager to the technology platform vendor.

(g) The commissioner must perform annual market checks on pharmacy benefit manager
services performed by the pharmacy benefit manager during the term of the contract. A
market check performed under this paragraph may include an evaluation of the effect of
alternative drug pricing metrics, such as the national average drug acquisition cost and
average wholesale price, on the cost of prescription drugs and savings to the state.

(h) The commissioner shall make regular, periodic payment of invoices within the time
periods specified in the contract based on the automated adjudication of invoiced claims
using the technology platform to validate that claims payments comply with the terms of
the contract.

(i) The joint labor-management committee on health plans shall assist in the process
through which the commissioner conducts the reverse auction, evaluation, and comparison
of the competing pharmacy benefit manager bids for award of the contract.

Sec. 32.

Minnesota Statutes 2024, section 43A.231, subdivision 4, is amended to read:

Subd. 4.

Technology platform.

(a) deleted text begin At least three months before the reverse auction
process is scheduled to be completed, deleted text end The commissioner shall procure through a competitive
bidding process a contract with a professional services vendor for a technology platform
and any associated professional services necessary to operate the platform to:

(1) evaluate the qualifications of prospective pharmacy benefit manager bidders for the
pharmacy benefit manager procurement;

(2) automatically adjudicate prescription drug claims; and

(3) collect data on pharmacy reimbursement.

(b) The platform procured under paragraph (a) must have the following capabilities to
ensure optimal performance of the reverse auction and security of data:

(1) host and conduct an online automated reverse auction:

(i) using a software application and high-performance data infrastructure to intake,
cleanse, and normalize pharmacy benefit manager data; and

(ii) with development methods and information security standards that have been validated
by receiving Service Organization Control 2 (SOC 2) and National Institute of Standards
and Technology certification;

(2) automate repricing of diverse and complex pharmacy benefit manager prescription
drug pricing proposals to enable direct comparisons of the price of bids using all annual
claims data available for the program using code-based classification or prescription drugs
from nationally accepted drug sources;

(3) simultaneously evaluate deleted text begin , within six hours, deleted text end diverse and complex multiple proposals
from full-service pharmacy benefit managers that shall include at least guaranteed net cost,
Average Wholesale Price and National Average Drug Acquisition Cost (NADAC) pricing
models, as well as proposals from pharmacy benefit administrators and specialty drug and
rebate carve-out services providers; new text begin and
new text end

(4) produce an automated report and analysis of bids, including ranking of bids on the
comparative costs and qualitative aspects of the costs deleted text begin within six hours deleted text end after the close of
each round of reverse auction bidding deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (5) after the close of the reverse auction process, perform an electronic, line-by-line,
claim-by-claim review of all invoiced pharmacy benefit manager claims within six hours
of receipt that allows for an online comparison of pharmacy benefit manager invoices and
identifies all deviations from the specific terms of the services contract resulting from the
reverse auction.
deleted text end

(c) The commissioner may require additional capabilities or more rigorous standards
than those specified in paragraph (b).

(d) The commissioner shall not award the platform technology vendor contract under
this subdivision to:

(1) a pharmacy benefit manager;

(2) a subsidiary or affiliate of a pharmacy benefit manager; or

(3) a vendor who is managed by a pharmacy benefit manager or who receives, directly
or indirectly, remuneration from a pharmacy benefit manager for aggregating clients into
a contractual relationship with a pharmacy benefit manager.

(e) deleted text begin The vendor who is awarded the contract under this subdivision must not subcontract
any part of the reverse auction process or the review described under paragraph (b), clause
(5). deleted text end new text begin The commissioner shall also hire a vendor to perform an electronic, line-by-line,
claim-by-claim review of all invoiced pharmacy benefit manager claims that allows for an
online comparison of pharmacy benefit manager invoices and identifies all deviations from
the specific terms of the services contract resulting from the reverse auction. The claim
review vendor and the platform vendor may be the same or they may be distinct.
new text end

Sec. 33.

Minnesota Statutes 2024, section 43A.231, subdivision 6, is amended to read:

Subd. 6.

Data protections.

The commissioner of management and budget may only
enter into an agreement with deleted text begin a technology platform vendor deleted text end new text begin vendors under this section new text end if the
deleted text begin agreement provides deleted text end new text begin agreements provide new text end privacy protections for data collected and maintained
by the deleted text begin technology platform vendor deleted text end new text begin vendors new text end , including:

(1) procedures for the prevention of unauthorized access or use;

(2) a prohibition on the sale of data collected and maintained as provided in the
agreement; and

(3) a prohibition on dissemination of data unless authorized by state or federal law or
the agreement.

Sec. 34.

Minnesota Statutes 2024, section 43A.27, subdivision 3, is amended to read:

Subd. 3.

Retired employees.

(a) A person may elect to purchase at personal expense
individual and dependent hospital, medical, and dental coverages if the person is:

(1) a retired employee of the state or an organization listed in subdivision 2 or section
43A.24, subdivision 2, who, at separation of service:

(i) is immediately eligible to receive a retirement benefit under chapter 354B or an
annuity under a retirement program sponsored by the state or such organization of the state;

(ii) immediately meets the age and service requirements in section 352.115, subdivision
1; and

(iii) has five years of service or meets the service requirement of the collective bargaining
agreement or plan, whichever is greater; or

(2) a retired employee of the state who is at least 50 years of age and has at least 15
years of state service.

(b) The commissioner shall offer at least one plan which is actuarially equivalent to
those made available through collective bargaining agreements or plans established under
section 43A.18 to employees in positions equivalent to that from which retired.

(c) A spouse of a person eligible under paragraph (a) may purchase the coverage listed
in this subdivision if the spouse was a dependent under the retired employee's coverage at
the time of the retiree's death.

new text begin (d) A spouse of a person eligible under paragraph (a) who is a dependent under the
retired employee's coverage may purchase the coverage listed in this subdivision if the
retired employee loses eligibility for coverage because the retired employee enrolls in
medical assistance under chapter 256B and has a disability that meets the categorical
eligibility requirements of the Supplemental Security Income program.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end Coverages must be coordinated with relevant health insurance benefits provided
through the federally sponsored Medicare program. Until the retired employee reaches age
65, the retired employee and dependents must be pooled in the same group as active
employees for purposes of establishing premiums and coverage for hospital, medical, and
dental insurance. Coverage for retired employees and their dependents may not discriminate
on the basis of evidence of insurability or preexisting conditions unless identical conditions
are imposed on active employees in the group that the employee left. Appointing authorities
shall provide notice to employees no later than the effective date of their retirement of the
right to exercise the option provided in this subdivision. The retired employee must notify
the commissioner or designee of the commissioner within 30 days after the effective date
of the retirement of intent to exercise this option.

Sec. 35.

Minnesota Statutes 2024, section 240.131, subdivision 7, is amended to read:

Subd. 7.

Payments to state.

(a) A regulatory fee is imposed at the rate of deleted text begin one deleted text end new text begin two new text end percent
of all amounts wagered by Minnesota residents with an authorized advance deposit wagering
provider. The fee shall be declared on a form prescribed by the commission. The ADW
provider must pay the fee to the commission no more than 15 days after the end of the month
in which the wager was made. Fees collected under this paragraph must be deposited in the
state treasury and credited to a racing and card-playing regulation account in the special
revenue fund and are appropriated to the commission to offset the costs incurred by the
commission as described in section 240.30, subdivision 9, or the costs associated with
regulating horse racing and pari-mutuel wagering in Minnesota.

(b) A breeders fund fee is imposed in the amount of one-quarter of one percent of all
amounts wagered by Minnesota residents with an authorized advance deposit wagering
provider. The fee shall be declared on a form prescribed by the commission. The ADW
provider must pay the fee to the commission no more than 15 days after the end of the month
in which the wager was made. Fees collected under this paragraph must be deposited in the
state treasury and credited to a racing and card-playing regulation account in the special
revenue fund and are appropriated to the commission to offset the cost of administering the
breeders fund, to support racehorse adoption, retirement, and repurposing, and promote
horse breeding in Minnesota.

Sec. 36.

Minnesota Statutes 2024, section 349A.01, is amended by adding a subdivision
to read:

new text begin Subd. 13a. new text end

new text begin Responsible lottery official. new text end

new text begin "Responsible lottery official" means an officer,
director, or owner of an organization, firm, partnership, or corporation that have oversight
of lottery ticket sales.
new text end

Sec. 37.

Minnesota Statutes 2024, section 349A.06, subdivision 2, is amended to read:

Subd. 2.

Qualifications.

(a) The director may not contract with a deleted text begin retailer deleted text end new text begin sole proprietor
to be a lottery retailer new text end who:

(1) is under the age of 18;

(2) is in business solely as a seller of lottery tickets;

(3) owes $500 or more in delinquent taxes as defined in section 270C.72;

(4) has been convicted within the previous five years of a felony or gross misdemeanor,
any crime involving fraud or misrepresentation, or a gambling-related offense new text begin in any
jurisdiction in the United States new text end ;

(5) is a member of the immediate family, residing in the same household, as the director
or any employee of the lottery;

(6) in the director's judgment does not have the financial stability or responsibility to
act as a lottery retailer, or whose contracting as a lottery retailer would adversely affect the
public health, welfare, and safety, or endanger the security and integrity of the lottery; or

(7) is a currency exchange, as defined in section 53A.01.

deleted text begin A contract entered into before August 1, 1990, which violates clause (7) may continue
in effect until its expiration but may not be renewed.
deleted text end

(b) new text begin The director may not contract with an organization, firm, partnership, or corporation
to be a lottery retailer that:
new text end

new text begin (1) has a responsible lottery official who: (i) is under the age of 18; (ii) owes $500 or
more in delinquent taxes as defined in section 270C.72; or (iii) has been convicted within
the previous five years of a felony or gross misdemeanor, any crime involving fraud or
misrepresentation, or a gambling-related offense in any jurisdiction in the United States;
new text end

new text begin (2) new text end deleted text begin An organization, firm, partnership, or corporation that deleted text end has a stockholder who owns
more than five percent of the business or the stock of the corporation, new text begin a responsible lottery
official, new text end an officer, or new text begin a new text end director, deleted text begin that does not meet the requirements of paragraph (a), clause
(4), is not eligible to be a lottery retailer under this section deleted text end new text begin who is a member of the immediate
family of, or resides in the same household as, the director or any employee of the lottery;
new text end

new text begin (3) is in business solely as a seller of lottery tickets;
new text end

new text begin (4) in the director's judgment does not have the financial stability or responsibility to
act as a lottery retailer, or whose contracting as a lottery retailer would adversely affect
public health, welfare, and safety, or endanger the security and integrity of the lottery; or
new text end

new text begin (5) is a currency exchange, as defined in section 53A.01 new text end .

deleted text begin (c) The restrictions under paragraph (a), clause (4), do not apply to an organization,
partnership, or corporation if the director determines that the organization, partnership, or
firm has terminated its relationship with the individual whose actions directly contributed
to the disqualification under this subdivision.
deleted text end

Sec. 38.

Minnesota Statutes 2024, section 349A.06, subdivision 4, is amended to read:

Subd. 4.

Criminal history.

new text begin (a) Upon the director's request, an applicant for a lottery
retailer contract must submit a completed criminal history records check consent form, a
full set of classifiable fingerprints, and required fees to the director or the Bureau of Criminal
Apprehension. Upon receipt of this information, the director must submit the completed
criminal history records check consent form, full set of classifiable fingerprints, and required
fees to the Bureau of Criminal Apprehension.
new text end

new text begin (b) After receiving this information, the bureau must conduct a Minnesota criminal
history records check of the individual. The bureau is authorized to exchange the fingerprints
with the Federal Bureau of Investigation to obtain the applicant's national criminal history
record information. The bureau shall return the results of the Minnesota and national criminal
history records checks to the director to determine the individual's compliance with the
requirements of subdivision 2.
new text end

new text begin (c) The director shall request a Minnesota and national criminal history check for any
sole proprietor or responsible lottery official who applies to be a lottery retailer who (1) has
not undergone a check under this section within the past seven years or (2) has had any
lapse in its contracts to sell lottery tickets.
new text end

new text begin (d) new text end The director may request the director of alcohol and gambling enforcement to
investigate all applicants for lottery retailer contracts to determine their compliance with
the requirements of subdivision 2. The director may issue a temporary contract, valid for
not more than 90 days, to an applicant pending the completion of the investigation or a final
determination of qualifications under this section. The director has access to all criminal
history data compiled by the director of alcohol and gambling enforcement new text begin and the Bureau
of Criminal Apprehension new text end on (1) any person holding or applying for a retailer contract, (2)
any person holding a lottery vendor contract or who has submitted a bid on such a contract,
and (3) any person applying for employment with the lottery.

Sec. 39.

Minnesota Statutes 2024, section 349A.06, subdivision 11, is amended to read:

Subd. 11.

Cancellation, suspension, and refusal to renew contracts or locations.

(a)
The director shall cancel the contract of any lottery retailer or prohibit a lottery retailer from
selling lottery tickets at a business location who:

(1) deleted text begin has deleted text end new text begin is a sole proprietor or has a responsible lottery official who has new text end been convicted
of a felony or gross misdemeanor new text begin in any jurisdiction in the United States new text end ;

(2) deleted text begin has deleted text end new text begin is a sole proprietor or has a responsible lottery official who has new text end committed deleted text begin fraud,
misrepresentation, or deceit deleted text end new text begin any crime involving fraud or misrepresentation, or a
gambling-related offense in any jurisdiction in the United States new text end ;

(3) has provided false or misleading information to the lottery; or

(4) has acted in a manner prejudicial to public confidence in the integrity of the lottery.

(b) The director may cancel, suspend, or refuse to renew the contract of any lottery
retailer or prohibit a lottery retailer from selling lottery tickets at a business location who:

(1) changes business location;

(2) fails to account for lottery tickets received or the proceeds from tickets sold;

(3) fails to remit funds to the director in accordance with the director's rules;

(4) violates a law or a rule or order of the director;

(5) fails to comply with any of the terms in the lottery retailer's contract;

(6) fails to file a bond, securities, or a letter of credit as required under subdivision 3;

(7) in the opinion of the director fails to maintain a sufficient sales volume to justify
continuation as a lottery retailer; or

(8) has violated section 340A.503, subdivision 2, clause (1), two or more times within
a two-year period.

(c) The director may also cancel, suspend, or refuse to renew a lottery retailer's contract
or prohibit a lottery retailer from selling lottery tickets at a business location if there is a
material change in any of the factors considered by the director under subdivision 2.

(d) A contract cancellation, suspension, refusal to renew, or prohibiting a lottery retailer
from selling lottery tickets at a business location under this subdivision is a contested case
under sections 14.57 to 14.69 and is in addition to any criminal penalties provided for a
violation of law or rule.

(e) The director may temporarily suspend a contract or temporarily prohibit a lottery
retailer from selling lottery tickets at a business location without notice for any of the reasons
specified in this subdivision provided that a hearing is conducted within seven days after a
request for a hearing is made by a lottery retailer. Within 20 days after receiving the
administrative law judge's report, the director shall issue an order vacating the temporary
suspension or prohibition or making any other appropriate order. If no hearing is requested
within 30 days of the temporary suspension or prohibition taking effect, the suspension or
prohibition becomes permanent unless the director vacates or modifies the order.

Sec. 40. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall change the term "Office of Administrative Hearings" to
"Court of Administrative Hearings" wherever the term appears in Minnesota Statutes. The
revisor of statutes shall also change the term "office" to "court" wherever the term "office"
appears and refers to the Office of Administrative Hearings in Minnesota Statutes.
new text end

Sec. 41. new text begin REPEALER.
new text end

new text begin Subdivision 1. new text end

new text begin Political and campaign provisions. new text end

new text begin Minnesota Statutes 2024, sections
211B.06; and 211B.08, new text end new text begin are repealed.
new text end

new text begin Subd. 2. new text end

new text begin Model ordinance for outdoor lighting. new text end

new text begin Minnesota Statutes 2024, section
16B.328, subdivision 2, new text end new text begin is repealed.
new text end

new text begin Subd. 3. new text end

new text begin Reorganization services under master contract. new text end

new text begin Minnesota Statutes 2024,
section 16C.36, new text end new text begin is repealed.
new text end

new text begin Subd. 4. new text end

new text begin Legislative auditor. new text end

new text begin Minnesota Statutes 2024, section 16B.45, new text end new text begin is repealed.
new text end

ARTICLE 3

STATE PERSONNEL MANAGEMENT

Section 1.

Minnesota Statutes 2024, section 43A.01, subdivision 3, is amended to read:

Subd. 3.

Equitable compensation relationships.

It is the policy of this state deleted text begin to attempt deleted text end
to establish equitable compensation relationships between female-dominated,
male-dominated, and balanced classes of employees in the executive branch. Compensation
relationships are equitable within the meaning of this subdivision when the primary
consideration in negotiating, establishing, recommending, and approving total compensation
is comparability of the value of the work in relationship to other deleted text begin positions deleted text end new text begin classifications new text end
in the executive branch.

Sec. 2.

Minnesota Statutes 2024, section 43A.02, subdivision 14, is amended to read:

Subd. 14.

deleted text begin Commissioner's deleted text end new text begin Nonrepresented employees compensation new text end
plan.

" deleted text begin Commissioner's deleted text end new text begin Nonrepresented employees compensation new text end plan" means the plan
required by section 3.855 regarding total compensation and terms and conditions of
employment, including grievance administration, for employees of the executive branch
who are not otherwise provided for in this chapter or other law.

Sec. 3.

Minnesota Statutes 2024, section 43A.04, subdivision 1, is amended to read:

Subdivision 1.

Statewide leadership.

(a) The commissioner is the chief personnel and
labor relations manager of the civil service in the executive branch.

Whenever any power or responsibility is given to the commissioner by any provision
of this chapter, unless otherwise expressly provided, the power or authority applies to all
employees of agencies in the executive branch and to employees in classified positions in
the Office of the Legislative Auditor, the Minnesota State Retirement System, the Public
Employees Retirement Association, and the Teacher's Retirement Association. Unless
otherwise provided by law, the power or authority does not apply to unclassified employees
in the legislative and judicial branches.

(b) The commissioner shall operate an information system from which personnel data,
as defined in section 13.43, concerning employees and applicants for positions in the
classified service can be retrieved.

The commissioner has access to all public and private personnel data kept by appointing
authorities that will aid in the discharge of the commissioner's duties.

(c) The commissioner may consider and investigate any matters concerned with the
administration of provisions of this chapter, and may order any remedial actions consistent
with law. The commissioner, at the request of an agency, shall provide assistance in employee
misconduct investigations. new text begin Upon request of the appointing authority, the commissioner may
issue determinations on personnel matters regarding board-appointed executive directors
or leaders. new text end The commissioner shall have the right to assess from the requesting agency, any
costs incurred while assisting the agency in the employee misconduct investigation. Money
received by the commissioner under this paragraph is appropriated to the commissioner for
purposes of this paragraph.

(d) The commissioner may assess or establish and collect premiums from all state entities
to cover the costs of programs under deleted text begin sections deleted text end new text begin section new text end 15.46 deleted text begin and 176.603 deleted text end .

Sec. 4.

Minnesota Statutes 2024, section 43A.04, subdivision 4, is amended to read:

Subd. 4.

Administrative procedures.

The commissioner shall develop administrative
procedures, which are not subject to the rulemaking provisions of the Administrative
Procedure Act, to effect provisions of chapter 43A which do not directly affect the rights
of or processes available to the general public. The commissioner may also adopt
administrative procedures, not subject to the Administrative Procedure Act, which concern
topics affecting the general public if those procedures concern only the internal management
of the department or other agencies and if those elements of the topics which affect the
general public are the subject of department rules.

Administrative procedures shall be reproduced and made available for comment in
accessible digital formats under section 16E.03 to agencies, employees, and appropriate
exclusive representatives certified pursuant to sections 179A.01 to 179A.25, for at least 15
days prior to implementation and shall include but are not limited to:

(1) maintenance and administration of a plan of classification for all positions in the
classified service and for comparisons of unclassified positions with positions in the classified
service;

(2) procedures for administration of collective bargaining agreements and plans
established pursuant to section 43A.18 concerning total compensation and the terms and
conditions of employment for employees;

(3) procedures for effecting all personnel actions internal to the state service such as
processes and requirements for agencies to publicize job openings and consider applicants
who deleted text begin are referred or nominate themselves deleted text end new text begin apply new text end , conduct of selection procedures limited to
employees, noncompetitive and qualifying appointments of employees and leaves of absence;

(4) maintenance and administration of employee performance appraisal, training and
other programs; and

(5) procedures for pilots of the reengineered employee selection process. Employment
provisions of this chapter, associated personnel rules adopted under subdivision 3, and
administrative procedures established under clauses (1) and (3) may be waived for the
purposes of these pilots. The pilots may affect the rights of and processes available to
members of the general public seeking employment in the classified service. The
commissioner will provide public notice of any pilot directly affecting the rights of and
processes available to the general public and make the administrative procedures available
for comment to the general public, agencies, employees, and appropriate exclusive
representatives certified pursuant to sections 179A.01 to 179A.25 for at least 30 days prior
to implementation. The commissioner must publish the public notice in an accessible digital
format under section 16E.03. The commissioner must provide a comment process that allows
the public to submit comments through multiple formats to ensure accessibility. These
formats must include telephone, digital content, and email.

Sec. 5.

Minnesota Statutes 2024, section 43A.04, subdivision 8, is amended to read:

Subd. 8.

Donation of time.

Notwithstanding any law to the contrary, the commissioner
shall authorize the appointing authority to permit the donation of up to eight hours of
accumulated vacation time in each year by each employee who is a member of law
enforcement unit number 1 new text begin , 18, or 19 new text end to their union representative for the purpose of carrying
out the duties of office.

Sec. 6.

Minnesota Statutes 2024, section 43A.05, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Commissioner's deleted text end new text begin Nonrepresented employees compensation new text end plan.

The
commissioner shall periodically develop and establish pursuant to this chapter a
deleted text begin commissioner's deleted text end new text begin nonrepresented employees compensation new text end plan. The commissioner shall
submit the plan to the Legislative Coordinating Commission.

Sec. 7.

Minnesota Statutes 2024, section 43A.08, subdivision 1a, is amended to read:

Subd. 1a.

Additional unclassified positions.

Appointing authorities for deleted text begin the following
agencies may designate additional unclassified positions according to this subdivision: the
Departments of Administration; Agriculture; Children, Youth, and Families; Commerce;
Corrections; Education; Employment and Economic Development; Explore Minnesota
Tourism; Management and Budget; Health; Human Rights; Human Services; Labor and
Industry; Natural Resources; Public Safety; Revenue; Transportation; and Veterans Affairs;
the Housing Finance and Pollution Control Agencies; the State Lottery; the State Board of
Investment; the Office of Administrative Hearings; the Department of Information
Technology Services; deleted text end new text begin an agency, including new text end the Offices of the Attorney General, Secretary
of State, and State Auditor deleted text begin ; the Minnesota State Colleges and Universities; the Minnesota
Office of Higher Education; the Perpich Center for Arts Education; Direct Care and
Treatment; the Minnesota Zoological Board; and the Office of Emergency Medical Services deleted text end new text begin ,
may designate additional unclassified positions new text end .

A position designated deleted text begin by an appointing authority deleted text end according to this subdivision must
meet the following standards and criteria:

(1) the designation of the position would not be contrary to other law relating specifically
to that agency;

(2) the person occupying the position would report directly to the agency head or deputy
agency head and would be designated as part of the agency head's management team;

(3) the duties of the position would involve significant discretion and substantial
involvement in the development, interpretation, and implementation of agency policy;

(4) the duties of the position would not require primarily personnel, accounting, or other
technical expertise where continuity in the position would be important;

(5) there would be a need for the person occupying the position to be accountable to,
loyal to, and compatible with, the governor and the agency head, the employing statutory
board or commission, or the employing constitutional officer;

(6) the position would be at the level of division or bureau director or assistant to the
agency head; and

(7) the commissioner has approved the designation as being consistent with the standards
and criteria in this subdivision.

Sec. 8.

Minnesota Statutes 2024, section 43A.08, subdivision 4, is amended to read:

Subd. 4.

Length of service for student workers.

A person may deleted text begin not deleted text end new text begin only new text end be employed
as a student worker in the unclassified service under subdivision 1 deleted text begin for more than 36 months.
Employment at a school that a student attends is not counted for purposes of this 36-month
limit. Student workers in the Minnesota Department of Transportation SEEDS program
who are actively involved in a four-year degree program preparing for a professional career
job in the Minnesota Department of Transportation may be employed as a student worker
for up to 48 months deleted text end new text begin if the person is enrolled in secondary, postsecondary, or graduate study new text end .

Sec. 9.

Minnesota Statutes 2024, section 43A.11, subdivision 9, is amended to read:

Subd. 9.

deleted text begin Rejection deleted text end new text begin Nonselection new text end ; explanation.

If the appointing authority deleted text begin rejects deleted text end new text begin does
not select new text end a member of the finalist pool who has claimed veteran's preference, the appointing
authority shall notify the finalist in writing of the reasons for the rejection.

Sec. 10.

Minnesota Statutes 2024, section 43A.121, is amended to read:

43A.121 RANKING OF THE APPLICANT POOL.

Applicants referred from a layoff list shall be ranked as provided in the collective
bargaining agreement or plan established under section 43A.18, under which the layoff list
was established. All other names in an applicant pool shall be ranked according to the
veteran's preference provisions of section 43A.11, subdivision 7 deleted text begin , and then in descending
order of the number of skill matches for the vacant position deleted text end . If any ties in rank remain, those
names shall appear in alphabetical order.

Sec. 11.

Minnesota Statutes 2024, section 43A.15, subdivision 4, is amended to read:

Subd. 4.

Provisional appointments.

The commissioner may authorize an appointing
authority to make a provisional appointment if no applicant is suitable or available for
appointment and the person to be provisionally appointed is qualified in all respects except
for completion of a licensure or certification requirement.

No person shall be employed on a provisional basis for more than six months unless the
commissioner grants an extension to a maximum of 12 months in the best interest of the
state. No extension may be granted beyond 12 months except where there is a lack of
applicants and the provisional appointee is continuing to work to complete the licensure or
certification requirement.

At the request of an appointing authority, the commissioner may authorize the
probationary appointment of a provisional appointee who has performed satisfactorily deleted text begin for
at least 60 days deleted text end and has completed the licensure or certification requirement.

Sec. 12.

Minnesota Statutes 2024, section 43A.15, subdivision 7, is amended to read:

Subd. 7.

Appointments for unclassified incumbents of newly classified positions.

The
commissioner may authorize the probationary appointment of an incumbent who has passed
a qualifying selection process and who has served at least one year in an unclassified position
deleted text begin which has been placed in the classified service by proper authority deleted text end .

Sec. 13.

Minnesota Statutes 2024, section 43A.15, subdivision 12, is amended to read:

Subd. 12.

deleted text begin Work-training deleted text end new text begin Trainee new text end appointments.

The commissioner may authorize
the probationary appointment of persons who successfully complete on-the-job state training
programs deleted text begin which deleted text end new text begin that new text end have been approved by the commissioner.

Sec. 14.

Minnesota Statutes 2024, section 43A.15, subdivision 14, is amended to read:

Subd. 14.

700-hour on-the-job demonstration experience.

(a) The commissioner shall
consult with the Department of Employment and Economic Development's Vocational
Rehabilitation Services and State Services for the Blind and other disability experts in
establishing, reviewing, and modifying the qualifying procedures for applicants whose
disabilities are of such a significant nature that the applicants are unable to demonstrate
their abilities in the selection process. The qualifying procedures must consist of up to 700
hours of on-the-job demonstration experience. The 700-hour on-the-job demonstration
experience is an alternative, noncompetitive hiring process for qualified applicants with
disabilities. All permanent executive branch classified positions are eligible for a 700-hour
on-the-job demonstration experience, and all permanent classified job postings must provide
information regarding the on-the-job demonstration overview and certification process.

(b) The commissioner deleted text begin may deleted text end new text begin shall new text end authorize the probationary appointment of an applicant
based on the request of the appointing authority that documents that the applicant has
successfully demonstrated qualifications for the position through completion of an on-the-job
demonstration experience. A qualified applicant deleted text begin should deleted text end new text begin shall new text end be converted to deleted text begin permanent, deleted text end new text begin a
new text end probationary deleted text begin appointments deleted text end new text begin appointment new text end at the point in the 700-hour on-the-job experience
when the applicant has demonstrated the ability to perform the essential functions of the
job with or without reasonable accommodation. The implementation of this subdivision
may not be deemed a violation of chapter 43A or 363A.

(c) The commissioner and the ADA and disability employment director, described in
section 43A.19, subdivision 1, paragraph (e), are responsible for the administration and
oversight of the 700-hour on-the-job demonstration experience, including the establishment
of policies and procedures, data collection and reporting requirements, and compliance.

(d) The commissioner or the commissioner's designee shall design and implement a
training curriculum for the 700-hour on-the-job demonstration experience. All executive
leaders, managers, supervisors, human resources professionals, affirmative action officers,
and ADA coordinators must receive annual training on the program.

(e) The commissioner or the commissioner's designee shall develop, administer, and
make public a formal grievance process for individuals in the 700-hour on-the-job
demonstration experience under this subdivision and supported work program under section
43A.421, subdivision 2.

(f) An appointing authority must make reasonable accommodations in response to a
request from an applicant with a disability, including providing accommodations in a timely
manner during the application and hiring process and throughout the 700-hour on-the-job
demonstration experience. Requirements for accessibility for public records under section
363A.42, continuing education under section 363A.43, and technology under section 16E.03,
subdivision 2, clauses (3) and (9), apply to an agency filling an appointment during the
application and hiring process and through the on-the-job demonstration experience period.

Sec. 15.

Minnesota Statutes 2024, section 43A.17, subdivision 5, is amended to read:

Subd. 5.

Salary on demotion; special cases.

The commissioner may, upon request of
an appointing authority, approve payment of an employee with permanent status at a salary
rate above the maximum of the class to which the employee is demoted. The commissioner
shall take such action as required by collective bargaining agreements or plans pursuant to
section 43A.18. If the action is justified by the employee's long or outstanding service,
exceptional or technical qualifications, deleted text begin age, health, deleted text end or substantial changes in work assignment
beyond the control of the employee, the commissioner may approve a rate up to and including
the employee's salary immediately prior to demotion. Thereafter, so long as the employee
remains in the same position, the employee shall not be eligible to receive any increase in
salary until the employee's salary is within the range of the class to which the employee's
position is allocated unless such increases are specifically provided in collective bargaining
agreements or plans pursuant to section 43A.18.

Sec. 16.

Minnesota Statutes 2024, section 43A.181, subdivision 1, is amended to read:

Subdivision 1.

Donation of vacation time.

A state employee may donate up to 12 hours
of accrued vacation time in any fiscal year to the account established by subdivision 2 for
the benefit of another state employee. deleted text begin The employee must notify the employee's agency
head of the amount of accrued vacation time the employee wishes to donate and the name
of the other state employee who is to benefit from the donation. The agency head shall
determine the monetary value of the donated time, using the gross salary of the employee
making the donation. The agency head shall transfer that amount, less deductions for
applicable taxes and retirement contributions, to the account established by subdivision 2. deleted text end
A donation of accrued vacation time is irrevocable once its monetary value has been
transferred to the account.

Sec. 17.

Minnesota Statutes 2024, section 43A.1815, is amended to read:

43A.1815 VACATION DONATION TO SICK LEAVE ACCOUNT.

(a) In addition to donations under section 43A.181, a state employee may donate a total
of up to 40 hours of accrued vacation leave each fiscal year to the sick leave account of one
or more state employees. A state employee may not be paid for more than 80 hours in a
payroll period during which the employee uses sick leave credited to the employee's account
as a result of a transfer from another state employee's vacation account.

new text begin (b) At retirement, eligible state employees may donate additional accumulated vacation
hours in excess of their vacation payout at time of retirement into a general pool, even if
they already have donated 40 hours.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The recipient employee must receive donations, as available, for a life-threatening
condition of the employee or spouse or dependent child that prevents the employee from
working. A recipient may use program donations retroactively to when all forms of paid
leave are exhausted if the employee has sufficient donations to cover the period of
retroactivity. A recipient who receives program donations under this section may use up to
80 hours of program donations after the death of a spouse or dependent child.

deleted text begin (c) deleted text end new text begin (d) new text end An applicant for benefits under this section who receives an unfavorable
determination may select a designee to consult with the commissioner or commissioner's
designee on the reasons for the determination.

deleted text begin (d) deleted text end new text begin (e) new text end The commissioner shall establish procedures under section 43A.04, subdivision
4, for eligibility, duration of need based on individual cases, monitoring and evaluation of
individual eligibility status, and other topics related to administration of this program.

Sec. 18.

Minnesota Statutes 2024, section 43A.19, subdivision 1, is amended to read:

Subdivision 1.

Statewide affirmative action program.

(a) To assure that positions in
the executive branch of the civil service are equally accessible to all qualified persons, and
to eliminate the effects of past and present discrimination, intended or unintended, on the
basis of protected group status, the commissioner shall adopt and periodically revise, if
necessary, a statewide affirmative action program. The statewide affirmative action program
must consist of at least the following:

(1) objectives, goals, and policies;

(2) procedures, standards, and assumptions to be used by agencies in the preparation of
agency affirmative action plans, including methods by which goals and timetables are
established;

(3) the analysis of separation patterns to determine the impact on protected group
members; and

(4) requirements for annual objectives and submission of affirmative action progress
reports from heads of agencies.

Agency heads must report the data in clause (3) to the state Director of deleted text begin Recruitment,
Retention and deleted text end Affirmative Action and the state ADA coordinator, in addition to being
available to anyone upon request. The commissioner must annually post the aggregate and
agency-level reports under clause (4) on the agency's website.

(b) The commissioner shall establish statewide affirmative action goals for each of the
federal Equal Employment Opportunity (EEO) occupational categories applicable to state
employment, using at least the following factors:

(1) the percentage of members of each protected class in the recruiting area population
who have the necessary skills; and

(2) the availability for promotion or transfer of current employees who are members of
protected classes.

(c) The commissioner may use any of the following factors in addition to the factors
required under paragraph (b):

(1) the extent of unemployment of members of protected classes in the recruiting area
population;

(2) the existence of training programs in needed skill areas offered by employing agencies
and other institutions; and

(3) the expected number of available positions to be filled.

(d) The commissioner shall designate a state director of diversity and equal employment
opportunity who may be delegated the preparation, revision, implementation, and
administration of the program. The commissioner of management and budget may place
the director's position in the unclassified service if the position meets the criteria established
in section 43A.08, subdivision 1a.

(e) The commissioner shall designate a statewide ADA and disability employment
director. The commissioner may delegate the preparation, revision, implementation,
evaluation, and administration of the program to the director. The director must administer
the 700-hour on-the-job demonstration experience under the supported work program and
disabled veteran's employment programs. The ADA and disability employment director
shall have education, knowledge, and skills in disability policy, employment, and the ADA.
The commissioner may place the director's position in the unclassified service if the position
meets the criteria established in section 43A.08, subdivision 1a.

(f) Agency affirmative action plans, including reports and progress, must be posted on
the agency's public and internal websites within 30 days of being approved. The
commissioner of management and budget shall post a link to all executive branch
agency-approved affirmative action plans on its public website. Accessible copies of the
affirmative action plan must be available to all employees and members of the general public
upon request.

Sec. 19.

Minnesota Statutes 2024, section 43A.23, subdivision 1, is amended to read:

Subdivision 1.

General.

(a) The commissioner is authorized to request proposals or to
negotiate and to enter into contracts with parties which in the judgment of the commissioner
are best qualified to provide service to the benefit plans. Contracts entered into are not
subject to the requirements of sections 16C.16 to 16C.19. The commissioner may negotiate
premium rates and coverage. The commissioner shall consider the cost of the plans,
conversion options relating to the contracts, service capabilities, character, financial position,
and reputation of the carriers, and any other factors deleted text begin which deleted text end new text begin that new text end the commissioner deems
appropriate. Each benefit contract must be for a uniform term of at least one year, but may
be made automatically renewable from term to term in the absence of notice of termination
by either party. A carrier licensed under chapter 62A is exempt from the taxes imposed by
chapter 297I on premiums paid to it by the state.

(b) All self-insured hospital and medical service products must comply with coverage
mandates, data reporting, and consumer protection requirements applicable to the licensed
carrier administering the product, had the product been insured, including chapters 62J,
62M, and 62Q. Any self-insured products that limit coverage to a network of providers or
provide different levels of coverage between network and nonnetwork providers shall comply
with section 62D.123 and geographic access standards for health maintenance organizations
adopted by the commissioner of health in rule under chapter 62D.

(c) Notwithstanding paragraph (b), a self-insured hospital and medical product offered
under sections 43A.22 to 43A.30 is required to extend dependent coverage to an eligible
employee's child to the full extent required under chapters 62A and 62L. Dependent child
coverage must, at a minimum, extend to an eligible employee's dependent child to the
limiting age as defined in section 62Q.01, subdivision 2a, disabled children to the extent
required in sections 62A.14 and 62A.141, and dependent grandchildren to the extent required
in sections 62A.042 and 62A.302.

(d) Beginning January 1, 2010, the health insurance benefit plans offered in the
deleted text begin commissioner's deleted text end new text begin nonrepresented employees compensation new text end plan under section 43A.18,
subdivision 2, and the managerial plan under section 43A.18, subdivision 3, must include
an option for a health plan that is compatible with the definition of a high-deductible health
plan in section 223 of the United States Internal Revenue Code.

Sec. 20.

Minnesota Statutes 2024, section 43A.23, subdivision 2, is amended to read:

Subd. 2.

Contract to contain statement of benefits.

(a) Each contract under sections
43A.22 to 43A.30 shall contain a detailed statement of benefits offered and shall include
any maximums, limitations, exclusions, and other definitions of benefits the commissioner
deems necessary or desirable. Each hospital and medical benefits contract shall provide
benefits at least equal to those required by section 62E.06, subdivision 2.

(b) All summaries of benefits describing the hospital and medical service benefits offered
to state employees must comply with laws and rules for content and clarity applicable to
the licensed carrier administering the product. Referral procedures must be clearly described.
The commissioners of commerce and health deleted text begin , as appropriate, shall deleted text end new text begin may new text end review the summaries
of benefits deleted text begin , whether written or electronic, deleted text end and advise the commissioner on any changes
needed to ensure compliance.

Sec. 21.

Minnesota Statutes 2024, section 43A.24, subdivision 1a, is amended to read:

Subd. 1a.

Opt out.

(a) An individual eligible for state-paid hospital, medical, and dental
benefits under this section has the right to decline those benefits, provided the individual
declining the benefits can prove health insurance coverage from another source. Any
individual declining benefits must do so in writing, signed and dated, on a form provided
by the commissioner.

(b) The commissioner must create, and make available in hard copy and online a form
for individuals to use in declining state-paid hospital, medical, and dental benefits. The form
must, at a minimum, include notice to the declining individual of the next available
opportunity and procedure to re-enroll in the benefits.

deleted text begin (c) No later than January 15 of each year, the commissioner of management and budget
must provide a report to the chairs and ranking minority members of the legislative
committees with jurisdiction over state government finance on the number of employees
choosing to opt-out of state employee group insurance coverage under this section. The
report must provide itemized statistics, by agency, and include the total amount of savings
accrued to each agency resulting from the opt-outs.
deleted text end

Sec. 22.

Minnesota Statutes 2024, section 43A.24, subdivision 2, is amended to read:

Subd. 2.

Other eligible persons.

The following persons are eligible for state paid life
insurance and hospital, medical, and dental benefits as determined in applicable collective
bargaining agreements or by the commissioner or by plans pursuant to section 43A.18,
subdivision 6 deleted text begin , or by the Board of Regents for employees of the University of Minnesota
not covered by collective bargaining agreements deleted text end . Coverages made available, including
optional coverages, are as contained in the plan established pursuant to section 43A.18,
subdivision 2:

(1) a member of the state legislature, provided that changes in benefits resulting in
increased costs to the state shall not be effective until expiration of the term of the members
of the existing house of representatives. An eligible member of the state legislature may
decline to be enrolled for state paid coverages by filing a written waiver with the
commissioner. The waiver shall not prohibit the member from enrolling the member or
dependents for optional coverages, without cost to the state, as provided for in section
43A.26. A member of the state legislature who returns from a leave of absence to a position
previously occupied in the civil service shall be eligible to receive the life insurance and
hospital, medical, and dental benefits to which the position is entitled;

(2) an employee of the legislature or an employee of a permanent study or interim
committee or commission or a state employee on leave of absence to work for the legislature,
during a regular or special legislative session, as determined by the Legislative Coordinating
Commission;

(3) a judge of the appellate courts or an officer or employee of these courts; a judge of
the district court, a judge of county court, or a judge of county municipal court; a district
court referee, judicial officer, court reporter, or law clerk; a district administrator; an
employee of the Office of the District Administrator that is not in the Second or Fourth
Judicial District; a court administrator or employee of the court administrator in a judicial
district under section 480.181, subdivision 1, paragraph (b), and a guardian ad litem program
employee;

(4) a salaried employee of the Public Employees Retirement Association;

(5) a full-time military or civilian officer or employee in the unclassified service of the
Department of Military Affairs whose salary is paid from state funds;

(6) an employee of the Minnesota Historical Society, whether paid from state funds or
otherwise, who is not a member of the governing board;

deleted text begin (7) an employee of the regents of the University of Minnesota;
deleted text end

deleted text begin (8) deleted text end new text begin (7) new text end notwithstanding section 43A.27, subdivision 3, an employee of the state of
Minnesota or the regents of the University of Minnesota who is at least 60 and not yet 65
years of age on July 1, 1982, who is otherwise eligible for employee and dependent insurance
and benefits pursuant to section 43A.18 or other law, who has at least 20 years of service
and retires, earlier than required, within 60 days of March 23, 1982; or an employee who
is at least 60 and not yet 65 years of age on July 1, 1982, who has at least 20 years of state
service and retires, earlier than required, from employment at Rochester state hospital after
July 1, 1981; or an employee who is at least 55 and not yet 65 years of age on July 1, 1982,
and is covered by the Minnesota State Retirement System correctional employee retirement
plan or the State Patrol retirement fund, who has at least 20 years of state service and retires,
earlier than required, within 60 days of March 23, 1982. For purposes of this clause, a person
retires when the person terminates active employment in state or University of Minnesota
service and applies for a retirement annuity. Eligibility shall cease when the retired employee
attains the age of 65, or when the employee chooses not to receive the annuity that the
employee has applied for. The retired employee shall be eligible for coverages to which the
employee was entitled at the time of retirement, subject to any changes in coverage through
collective bargaining or plans established pursuant to section 43A.18, for employees in
positions equivalent to that from which retired, provided that the retired employee shall not
be eligible for state-paid life insurance. Coverages shall be coordinated with relevant health
insurance benefits provided through the federally sponsored Medicare program;

deleted text begin (9) deleted text end new text begin (8) new text end an employee of an agency of the state of Minnesota identified through the process
provided in this paragraph who is eligible to retire prior to age 65. The commissioner and
the exclusive representative of state employees shall enter into agreements under section
179A.22 to identify employees whose positions are in programs that are being permanently
eliminated or reduced due to federal or state policies or practices. Failure to reach agreement
identifying these employees is not subject to impasse procedures provided in chapter 179A.
The commissioner must prepare a plan identifying eligible employees not covered by a
collective bargaining agreement in accordance with the process outlined in section 43A.18,
subdivisions 2 and 3. For purposes of this paragraph, a person retires when the person
terminates active employment in state service and applies for a retirement annuity. Eligibility
ends as provided in the agreement or plan, but must cease at the end of the month in which
the retired employee chooses not to receive an annuity, or the employee is eligible for
employer-paid health insurance from a new employer. The retired employees shall be eligible
for coverages to which they were entitled at the time of retirement, subject to any changes
in coverage through collective bargaining or plans established under section 43A.18 for
employees in positions equivalent to that from which they retired, provided that the retired
employees shall not be eligible for state-paid life insurance;

deleted text begin (10) deleted text end new text begin (9) new text end employees of the state Board of Public Defense, with eligibility determined by
the state Board of Public Defense in consultation with the commissioner of management
and budget; and

deleted text begin (11) deleted text end new text begin (10) new text end employees of supporting organizations of Enterprise Minnesota, Inc., established
after July 1, 2003, under section 116O.05, subdivision 4, as paid for by the supporting
organization.

Sec. 23.

Minnesota Statutes 2024, section 43A.27, subdivision 2, is amended to read:

Subd. 2.

Elective eligibility.

The following persons, if not otherwise covered by section
43A.24, may elect coverage for themselves or their dependents at their own expense:

(1) a state employee, including persons on layoff from a civil service position as provided
in collective bargaining agreements or a plan established pursuant to section 43A.18;

deleted text begin (2) an employee of the Board of Regents of the University of Minnesota, including
persons on layoff, as provided in collective bargaining agreements or by the Board of
Regents;
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end an officer or employee of the State Agricultural Society, new text begin Center for Rural Policy
and Development, Agricultural Utilization Research Institute, new text end State Horticultural Society,
Sibley House Association, Minnesota Humanities deleted text begin Center deleted text end new text begin Commission new text end , Minnesota Area
Industry Labor Management Councils, Minnesota International Center, Minnesota Academy
of Science, Science Museum of Minnesota, Minnesota Safety Council, state Office of
Disabled American Veterans, state Office of the American Legion and its auxiliary, state
Office of Veterans of Foreign Wars and its auxiliary, or state Office of the Military Order
of the Purple Heart;

deleted text begin (4) deleted text end new text begin (3) new text end a civilian employee of the adjutant general who is paid from federal funds and
who is not eligible for benefits from any federal civilian employee group life insurance or
health benefits program;

deleted text begin (5) deleted text end new text begin (4) new text end an officer or employee of deleted text begin the State Capitol deleted text end new text begin Affinity Plus Federal new text end Credit Union
deleted text begin or the Highway Credit Union deleted text end ; and

deleted text begin (6) deleted text end new text begin (5) new text end an employee of the joint underwriting association pursuant to section 62I.121 or
Minnesota FAIR plan pursuant to section 65A.35, subdivision 5, unless the commissioner
determines that making these employees eligible to purchase this coverage would cause the
state employee group insurance program to lose its status as a governmental plan or would
cause the program to be treated as a multiemployer welfare arrangement.

Sec. 24.

Minnesota Statutes 2024, section 43A.33, subdivision 3, is amended to read:

Subd. 3.

Procedures.

(a) Procedures for discipline and discharge of employees covered
by collective bargaining agreements shall be governed by the agreements. Procedures for
employees not covered by a collective bargaining agreement shall be governed by this
subdivision and by the commissioner's and managerial plans.

(b) For discharge, suspension without pay or demotion, no later than the effective date
of such action, a permanent classified employee not covered by a collective bargaining
agreement shall be given written notice by the appointing authority. The content of that
notice as well as the employee's right to reply to the appointing authority shall be as
prescribed in the grievance procedure contained in the applicable plan established pursuant
to section 43A.18. The notice shall also include a statement that the employee may elect to
appeal the action to the Bureau of Mediation Services within 30 calendar days following
the effective date of the disciplinary action. A copy of the notice and the employee's reply,
if any, shall be filed by the appointing authority with the commissioner no later than ten
calendar days following the effective date of the disciplinary action. The commissioner
shall have final authority to decide whether the appointing authority shall settle the dispute
prior to the hearing provided under new text begin this new text end subdivision deleted text begin 4 deleted text end .

(c) For discharge, suspension, or demotion of an employee serving an initial probationary
period, and for noncertification in any subsequent probationary period, grievance procedures
shall be as provided in the plan established pursuant to section 43A.18.

(d) Within ten days of receipt of the employee's written notice of appeal, the commissioner
of the Bureau of Mediation Services shall provide both parties with a list of potential
arbitrators according to the rules of the Bureau of Mediation Services to hear the appeal.
The process of selecting the arbitrator from the list shall be determined by the plan.The
hearing shall be conducted pursuant to the rules of the Bureau of Mediation Services. If the
arbitrator finds, based on the hearing record, that the action appealed was not taken by the
appointing authority for just cause, the employee shall be reinstated to the position, or an
equal position in another division within the same agency, without loss of pay. If the arbitrator
finds that there exists sufficient grounds for institution of the appointing authority's action
but the hearing record establishes extenuating circumstances, the arbitrator may reinstate
the employee, with full, partial, or no pay, or may modify the appointing authority's action.
The appointing authority shall bear the costs of the arbitrator for hearings provided for in
this section.

Sec. 25.

Minnesota Statutes 2024, section 43A.346, subdivision 2, is amended to read:

Subd. 2.

Eligibility.

(a) This section applies to a terminated state employee who:

(1) for at least the five years immediately preceding separation under deleted text begin clause deleted text end new text begin clauses new text end (2) new text begin
and (3) new text end , was regularly scheduled to work 1,044 or more hours per year in a position covered
by a pension plan administered by the Minnesota State Retirement System or the Public
Employees Retirement Association;

(2) terminated state or Metropolitan Council employment;

(3) at the time of termination under clause (2), met the age and service requirements
necessary to receive an unreduced retirement annuity from the plan and satisfied requirements
for the commencement of the retirement annuity or, for a terminated employee under the
unclassified employees retirement plan, met the age and service requirements necessary to
receive an unreduced retirement annuity from the plan and satisfied requirements for the
commencement of the retirement annuity or elected a lump-sum payment; and

(4) agrees to accept a postretirement option position with the same or a different
appointing authority, working a reduced schedule that is both (i) a reduction of at least 25
percent from the employee's number of previously regularly scheduled work hours; and (ii)
1,044 hours or less in state or Metropolitan Council service.

(b) For purposes of this section, an unreduced retirement annuity includes a retirement
annuity computed under a provision of law which permits retirement, without application
of an earlier retirement reduction factor, whenever age plus years of allowable service total
at least 90.

(c) For purposes of this section, as it applies to state employees who are members of the
Public Employees Retirement Association who are at least age 62, the length of separation
requirement and termination of service requirement prohibiting return to work agreements
under section 353.01, subdivisions 11a and 28, are not applicable.

Sec. 26.

Minnesota Statutes 2024, section 43A.346, subdivision 6, is amended to read:

Subd. 6.

Duration.

Postretirement option employment is for an initial period not to
exceed one year. During that period, the appointing authority may not modify the conditions
new text begin of employment new text end specified in the written offer without the person's consent, except as required
by law or by the collective bargaining agreement or compensation plan applicable to the
person. At the end of the initial period, the appointing authority has sole discretion to
determine if the offer of a postretirement option position will be renewed, renewed with
modifications, or terminated. Postretirement option employment may be renewed for periods
of up to one year, not to exceed a total duration of five years. No person may be employed
in one or a combination of postretirement option positions under this section for a total of
more than five years.

Sec. 27.

Minnesota Statutes 2024, section 43A.36, subdivision 1, is amended to read:

Subdivision 1.

Cooperation; state agencies.

(a) The commissioner may delegate
administrative functions associated with the duties of the commissioner to appointing
authorities who have the capability to perform such functions when the commissioner
determines that it is in the best interests of the state civil service. The commissioner shall
consult with agencies and agencies shall cooperate as appropriate in implementation of this
chapter.

(b) The commissioner, in conjunction with appointing authorities, shall analyze and
assess current and future human resource requirements of the civil service and coordinate
personnel actions throughout the civil service to meet the requirements. The commissioner
shall provide recruiting assistance and make the applicant database available to appointing
authorities to use in making appointments to positions in the unclassified service.

(c) The head of each agency in the executive branch shall designate an agency personnel
officer. The agency personnel officer shall be accountable to the agency head for all personnel
functions prescribed by laws, rules, collective bargaining agreements, the commissioner
and the agency head. Except when otherwise prescribed by the agency head in a specific
instance, the personnel officer shall be assumed to be the authority accountable to the agency
head over any other officer or employee in the agency for personnel functions.

(d) The head of each agency in the executive branch shall designate an affirmative action
officer who shall have primary responsibility for the administration of the agency's
affirmative action plan. The officer shall report directly to the head of the agency on
affirmative action matters.

(e) Pursuant to section 43A.431, the head of each agency in the executive branch shall
designate an ADA coordinator who shall have primary responsibility for the administration
of ADA policies, procedures, trainings, requests, and arbitration. The coordinator shall
report directly to the deleted text begin commissioner deleted text end new text begin agency head new text end .

Sec. 28.

Minnesota Statutes 2024, section 43A.421, is amended to read:

43A.421 deleted text begin SUPPORTED WORK deleted text end new text begin CUSTOMIZED EMPLOYMENT new text end PROGRAM.

Subdivision 1.

Program established.

deleted text begin Active positions within agencies of state
government may be selected for inclusion for a supported work program for persons with
significant disabilities. A full-time position may be shared by up to three persons with
significant disabilities and their job coach. The job coach is not a state employee within the
scope of section 43A.02, subdivision 21, or 179A.03, subdivision 14, unless the job coach
holds another position within the scope of section 43A.02, subdivision 21, or 179A.03,
subdivision 14. All classified supported work job postings need to link to the overview and
application process for the supported work program. deleted text end new text begin The commissioner is responsible for
the establishment, administration, and oversight of a program providing customized
employment opportunities for individuals with significant disabilities as defined in United
States Code, title 29, section 705(21). Employees in the customized employment program
are appointed to a customized employment position by matching the skills offered by eligible
individuals to specific tasks and projects within agencies, rather than to an existing job
classification. When job coach services are necessary for the individuals employed through
this program, the job coach is not a state employee within the scope of section 43A.02,
subdivision 21, or 179A.03, subdivision 14, unless the job coach holds another position
within the scope of section 43A.02, subdivision 21, or 179A.03, subdivision 14.
new text end

Subd. 2.

deleted text begin Responsibilities deleted text end new text begin Customized employment new text end .

(a) The commissioner is responsible
for the administration and oversight of the deleted text begin supported work deleted text end new text begin customized employment new text end program,
including the establishment of policies and procedures, new text begin eligibility, new text end data collection and
reporting requirements, and compliance.

(b) The commissioner or the commissioner's designee shall design and implement a
training curriculum for the deleted text begin supported work deleted text end new text begin customized employment new text end program. All executive
leaders, managers, supervisors, human resources professionals, affirmative action officers,
and Americans with Disabilities Act coordinators must receive deleted text begin annual deleted text end training regarding
the program.

(c) The commissioner or the commissioner's designee shall develop, administer, and
make public a formal grievance process for individuals in the program.

Sec. 29. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, sections 43A.315; 43A.317, subdivisions 1, 2, 3, 5, 6, 7, 8, 9,
10, and 12; and 43A.318, subdivisions 1, 2, 4, and 5, new text end new text begin are repealed.
new text end

ARTICLE 4

LICENSING BOARDS

Section 1.

Minnesota Statutes 2024, section 155A.23, is amended by adding a subdivision
to read:

new text begin Subd. 22. new text end

new text begin Textured hair. new text end

new text begin "Textured hair" is hair that is coiled, curly, or wavy.
new text end

Sec. 2.

Minnesota Statutes 2024, section 155A.27, subdivision 2, is amended to read:

Subd. 2.

Qualifications.

(a) Qualifications for licensing in each classification shall be
determined by the board and established by rule, and shall include educational and
experiential prerequisites.

deleted text begin (b) A person applying for an individual license to practice as a cosmetologist, hair
technician, manager, or instructor must: (1) successfully complete training on the properties
of the hair and all hair types and textures, including coil, curl, or wave patterns, hair strand
thicknesses, and volumes of hair; and (2) have experience providing services to individuals
with hair of all types and textures, including coil, curl, or wave patterns, hair strand
thicknesses, and volumes of hair.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end The rules shall require a demonstrated knowledge of procedures necessary to
protect the health and safety of the practitioner and the consumer of cosmetology services,
including but not limited to infection control, use of implements, apparatuses and other
appliances, and the use of chemicals.

Sec. 3.

Minnesota Statutes 2024, section 155A.2705, subdivision 3, is amended to read:

Subd. 3.

Training.

Hair technician training must be completed at a Minnesota-licensed
cosmetology school. The training must consist of 900 hours of coursework and planned
clinical instruction and experience that includes:

(1) the first 300 hours of the hair technology course that includes:

(i) student orientation;

(ii) preclinical instruction in the theory of sciences, including:

(A) muscle and bone structure and function;

(B) properties of the hair deleted text begin , a study of all hair types and textures, including coil, curl, or
wave patterns, hair strand thicknesses, and volumes of hair, deleted text end and scalp;

(C) disorders and diseases of the hair and scalp;

(D) chemistry as related to hair technology; and

(E) electricity and light related to the practice of hair technology;

(iii) theory and preclinical instruction on client and service safety prior to students
offering services;

(iv) introductory service skills that are limited to the observation of an instructor
demonstration, student use of mannequins, or student-to-student application of basic services
related to hair technology;

(v) Minnesota statutes and rules pertaining to the regulation of hair technology;

(vi) health and safety instruction that includes:

(A) chemical safety;

(B) safety data sheets;

(C) personal protective equipment (PPE);

(D) hazardous substances; and

(E) laws and regulations related to health and public safety; and

(vii) infection control to protect the health and safety of the public and technician that
includes:

(A) disinfectants;

(B) disinfectant procedures;

(C) cleaning and disinfection;

(D) single use items;

(E) storage of tools, implements, and linens; and

(F) other implements and equipment used in salons and schools;

(2) 300 hours in hair cutting and styling that includes hair and scalp analysis deleted text begin ; providing
services to individuals who have all hair types and textures, including coil, curl, or wave
patterns, hair strand thicknesses, and volumes of hair; cleaning; deleted text end new text begin , new text end scalp and hair conditioning deleted text begin ; deleted text end new text begin , new text end
hair design and shaping deleted text begin ; deleted text end new text begin , new text end drying deleted text begin ; deleted text end new text begin , new text end arranging deleted text begin ; deleted text end new text begin , new text end curling deleted text begin ; deleted text end new text begin , new text end dressing deleted text begin ; deleted text end new text begin , new text end waving deleted text begin ; deleted text end new text begin , new text end and nonchemical
straightening; and

(3) 300 hours in chemical hair services that includes hair and scalp analysis deleted text begin ; providing
services to individuals with all hair types and textures, including coil, curl, or wave patterns,
hair strand thicknesses, and volumes of hair; deleted text end new text begin , new text end dying deleted text begin ; deleted text end new text begin , new text end bleaching deleted text begin ; deleted text end new text begin , new text end reactive chemicals deleted text begin ; deleted text end new text begin , new text end keratin deleted text begin ; deleted text end new text begin , new text end
hair coloring deleted text begin ; deleted text end new text begin , new text end permanent straightening deleted text begin ; deleted text end new text begin , new text end permanent waving deleted text begin ; deleted text end new text begin , new text end predisposition and strand
tests deleted text begin ; deleted text end new text begin , new text end safety precautions deleted text begin ; deleted text end new text begin , new text end chemical mixing deleted text begin ; deleted text end new text begin , new text end color formulation deleted text begin ; deleted text end new text begin , new text end and the use of dye removers.

Sec. 4.

Minnesota Statutes 2024, section 155A.30, subdivision 2, is amended to read:

Subd. 2.

Standards.

new text begin (a) Cosmetologist and hair technician course content must include
textured hair training that consists of theoretical and clinical instruction on working with
hair with various:
new text end

new text begin (1) curl, coil, and wave patterns;
new text end

new text begin (2) hair strand thicknesses; and
new text end

new text begin (3) volumes.
new text end

new text begin (b) new text end The board shall by rule establish minimum standards of course content and length
specific to the educational preparation prerequisite to testing and licensing deleted text begin as cosmetologist,
esthetician, and nail technician deleted text end .

Sec. 5.

Minnesota Statutes 2024, section 326.05, is amended to read:

326.05 QUALIFICATIONS OF BOARD MEMBERS.

Each member of the board deleted text begin shall deleted text end new text begin must new text end be a resident of this state at the time of and
throughout the member's appointment. Each member except the public members deleted text begin shall deleted text end new text begin must new text end
have been engaged in the practice of the relevant profession for at least deleted text begin ten deleted text end new text begin five new text end years and
shall have been in responsible charge of professional work requiring licensure as an architect,
engineer, land surveyor, landscape architect, or geoscientist, or certification as an interior
designer for at least deleted text begin five deleted text end new text begin two new text end years.

Sec. 6.

Minnesota Statutes 2024, section 326.10, subdivision 1, is amended to read:

Subdivision 1.

Issuance.

The board shall on application therefor on a prescribed form,
and upon payment of a fee prescribed by rule of the board, issue a license or certificate as
an architect, engineer, land surveyor, landscape architect, geoscientist, or certified interior
designer. A separate fee shall be paid for each profession licensed.

(1) To any person deleted text begin over 25 years of age, who is of good moral character and repute, deleted text end new text begin who
complies with the Rules of Professional Conduct established in rules by the board new text end and who
has the experience and educational qualifications deleted text begin which deleted text end new text begin that new text end the board by rule may prescribe.

(2) To any person who holds an unexpired certificate of registration or license issued
by proper authority in the District of Columbia, any state or territory of the United States,
or any foreign country, in which the requirements for registration or licensure of architects,
engineers, land surveyors, landscape architects, geoscientists, or certified interior designers,
respectively, at the time of registration or licensure in the other jurisdiction, were deleted text begin equal, in
the opinion of the board, deleted text end new text begin substantially equivalent as established in rules by the board new text end to
those fixed by the board and by the laws of this state, and in which similar privileges are
extended to the holders of certificates of registration or licensure issued by this state. The
board may require such person to submit a certificate of technical qualification from the
National Council of Architectural Registration Boards in the case of an architect, from the
National Council of Examiners for Engineering and Surveying in the case of an engineer,
from the Council of Landscape Architectural Registration Boards in the case of a landscape
architect, and from the National Council for Interior Design Qualification in the case of a
certified interior designer.

Sec. 7.

Minnesota Statutes 2024, section 326.10, subdivision 2, is amended to read:

Subd. 2.

Examination.

deleted text begin The board, or a committee of the board, may subject any applicant
for licensure or certification to such examinations as may be deemed necessary to establish
qualifications.
deleted text end

deleted text begin In determining the qualifications of applicants, at least one member determining the
qualifications must be licensed or certified in the same profession as that being evaluated.
deleted text end

new text begin An applicant for licensure or certification must provide evidence of passing the required
examinations as prescribed by the board in rules.
new text end

Sec. 8.

Minnesota Statutes 2024, section 326.10, subdivision 10, is amended to read:

Subd. 10.

Temporary military license.

The board shall establish a temporary license
in accordance with section 197.4552 for the practice of architecture, professional engineering,
geosciences, land surveying, landscape architecture, and interior design. The fee for the
temporary license under this subdivision for the practice of architecture, professional
engineering, geosciences, land surveying, landscape architecture, or interior design is deleted text begin $132 deleted text end new text begin
$0 new text end .

Sec. 9.

Minnesota Statutes 2024, section 326.111, subdivision 3, is amended to read:

Subd. 3.

Cease and desist orders.

(a) The board, or the complaint committee if
authorized by the board, may issue and have served upon a person an order requiring the
person to cease and desist from the unauthorized practice of architecture, engineering, land
surveying, landscape architecture, geoscience, or the unauthorized use of the titles architect,
professional engineer, land surveyor, landscape architect, professional geologist, professional
soil scientist, certified interior designer, or violation of the statute, rule, or order. The order
shall be calculated to give reasonable notice of the rights of the person to request a hearing
and shall state the reasons for the entry of the order.

(b) Service of the order is effective if the order is served on the person or counsel of
record personally or by certified mail to the most recent address provided to the board for
the person or counsel of record. new text begin Service of the order must be by first class United States
mail, including certified United States mail, or overnight express mail service with the
postage prepaid and addressed to the party at the party's last known address. Service by
United States mail, including certified mail, is complete upon placing the order in the mail
or otherwise delivering the order to the United States mail service. Service by overnight
express mail service is complete upon delivering the order to an authorized agent of the
express mail service.
new text end

(c) Unless otherwise agreed by the board, or the complaint committee if authorized by
the board, and the person requesting the hearing, the hearing shall be held no later than 30
days after the request for the hearing is received by the board.

(d) The administrative law judge shall issue a report within 30 days of the close of the
contested case hearing record, notwithstanding Minnesota Rules, part 1400.8100, subpart
3. Within 30 days after receiving the report and any exceptions to it, the board shall issue
a further order vacating, modifying, or making permanent the cease and desist orders as the
facts require.

(e) If no hearing is requested within 30 days of service of the order, the order becomes
final and remains in effect until it is modified or vacated by the board.

(f) If the person to whom a cease and desist order is issued fails to appear at the hearing
after being duly notified, the person is in default and the proceeding may be determined
against that person upon consideration of the cease and desist order, the allegations of which
may be considered to be true.

Sec. 10.

Minnesota Statutes 2024, section 326.111, subdivision 4, is amended to read:

Subd. 4.

Actions against applicants and licensees.

(a) The board may, by order, deny,
refuse to renew, suspend, temporarily suspend, or revoke the application, license, or
certification of a person; censure or reprimand that person; condition or limit the person's
practice; refuse to permit a person to sit for examination; or refuse to release the person's
examination grades if the board finds that the order is in the public interest and the applicant,
licensee, or certificate holder:

(1) has violated a statute, rule, or order that the board has issued or is empowered to
enforce;

(2) has engaged in conduct or acts that are fraudulent, deceptive, or dishonest whether
or not the conduct or acts relate to the practice of architecture, engineering, land surveying,
landscape architecture, geoscience, or certified interior design, providing that the fraudulent,
deceptive, or dishonest conduct or acts reflect adversely on the person's ability or fitness to
engage in the practice of architecture, engineering, land surveying, landscape architecture,
geoscience, or certified interior design;

(3) has engaged in conduct or acts that are negligent or otherwise in violation of the
standards established by Minnesota Rules, chapters 1800 and 1805, where the conduct or
acts relate to the practice of architecture, engineering, land surveying, landscape architecture,
geoscience, or use of the title certified interior designer;

(4) has been convicted of or has pled guilty or nolo contendere to a felony, an element
of which is dishonesty or fraud, whether or not the person admits guilt, or has been shown
to have engaged in acts or practices tending to show that the applicant or licensee is
incompetent or has engaged in conduct reflecting adversely on the person's ability or fitness
to engage in the practice of architecture, engineering, land surveying, landscape architecture,
geoscience, or use of the title certified interior designer;

(5) employed fraud or deception in obtaining a certificate, license, renewal, or
reinstatement or in passing all or a portion of the examination;

(6) has had the person's architecture, engineering, land surveying, landscape architecture,
geoscience, or interior design license, certificate, right to examine, or other similar authority
revoked, suspended, canceled, limited, or not renewed for cause in any state, commonwealth,
or territory of the United States, in the District of Columbia, or in any foreign country;

(7) has had the person's right to practice before any federal, state, or other government
agency revoked, suspended, canceled, limited, or not renewed;

(8) failed to meet any requirement for the issuance or renewal of the person's license or
certificate;

(9) has attached the person's seal or signature to a plan, specification, report, plat, or
other architectural, engineering, land surveying, landscape architectural, geoscientific, or
interior design document not prepared by the person sealing or signing it or under that
person's direct supervision; or

(10) with respect to temporary suspension orders, has committed an act, engaged in
conduct, or committed practices that may, or has in the opinion of the board, or the complaint
committee if authorized by the board, resulted in an immediate threat to the public.

(b) In lieu of or in addition to any remedy provided in paragraph (a), the board may
require, as a condition of continued licensure, possession of certificate, termination of
suspension, reinstatement of license or certificate, examination, or release of examination
grades, that the person:

(1) submit to a quality review of the person's ability, skills, or quality of work, conducted
in such fashion and by such persons, entity, or entities as the board may require including,
but not limited to, remedial education courses; and

(2) complete to the satisfaction of the board such continuing professional education
courses as the board may specify by rule.

(c) Service of the order deleted text begin is effective if the order is served on the licensee, certificate
holder, applicant, person, or counsel of record personally or by certified mail, to the most
recent address provided to the board for the licensee, certificate holder, applicant, person,
or counsel of record. deleted text end new text begin must be by first class United States mail, including certified United
States mail, or overnight express mail service with the postage prepaid and addressed to the
party at the party's last known address. Service by United States mail, including certified
mail, is complete upon placing the order in the mail or otherwise delivering the order to the
United States mail service. Service by overnight express mail service is complete upon
delivering the order to an authorized agent of the express mail service. new text end The order shall state
the reasons for the entry of the order.

(d) All hearings required by this section shall be conducted in accordance with chapter
14, except with respect to temporary suspension orders, as provided for in subdivision 5,
paragraph (d).

Sec. 11.

Minnesota Statutes 2024, section 326.111, subdivision 5, is amended to read:

Subd. 5.

Procedure for temporary suspension of license or certificate.

(a) When the
board, or the complaint committee if authorized by the board, issues a temporary suspension
order, the suspension is in effect upon service of a written order on the licensee or counsel
of record, specifying the statute, rule, or order violated. The order remains in effect until
the board issues a final order in the matter after a hearing or upon agreement between the
board and the licensee.

(b) Service of the order deleted text begin is effective if the order is served on the licensee or counsel of
record personally or by certified mail, to the most recent address provided to the board for
the licensee or counsel of record. deleted text end new text begin must be by first class United States mail, including certified
United States mail, or overnight express mail service with postage prepaid and addressed
to the party at the party's last known address. Service by United States mail, including
certified mail, is complete upon placing the order in the mail or otherwise delivering the
order to the United States mail service. Service by overnight express mail service is complete
upon delivering the order to an authorized agent of the express mail service.
new text end

(c) The order shall set forth the rights to a hearing contained in this subdivision and shall
state the reasons for the entry of the order.

(d) Within ten days after service of the order, the licensee may request a hearing in
writing. The board shall hold a hearing before its own members within five working days
of receipt of a request for hearing on the sole issue of whether there is a reasonable basis
to continue, modify, or lift the temporary suspension. This hearing is not subject to chapter
14. Evidence presented by the board or the licensee shall be in affidavit form only. The
licensee or counsel of record may appear for oral argument.

(e) Within five working days after the hearing, the board shall issue its order and, if the
suspension is continued, schedule a contested case hearing within 30 days after issuance of
the order. The administrative law judge shall issue a report within 30 days after closing of
the contested case hearing record, notwithstanding the provisions of Minnesota Rules, part
1400.8100, subpart 3. The board shall issue a final order within 30 days after receipt of that
report and any exceptions to it.

Sec. 12.

Minnesota Statutes 2024, section 326.111, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Actions against a person with a lapsed license or certificate. new text end

new text begin If a person's
license or certificate lapses; is surrendered, withdrawn, or terminated; or otherwise becomes
ineffective, the board may institute a proceeding against the person under this subdivision
within two years after the license or certificate was last effective and enter a revocation or
suspension order as of the last date on which the license or certificate was in effect or impose
a civil penalty as provided in subdivision 6.
new text end

Sec. 13.

Minnesota Statutes 2024, section 326A.03, subdivision 6, is amended to read:

Subd. 6.

Certificate; required education and experience new text begin until July 1, 2030 new text end .

(a) On
or after July 1, 2006 new text begin , and before July 1, 2030 new text end , a person who has passed the examination
required in this section must be granted a certificate as a certified public accountant provided:
(1) the person certifies to the board that the person has completed at least 150 semester or
225 quarter hours at a college or university that is fully accredited by a recognized accrediting
agency listed with the United States Department of Education, or an equivalent accrediting
association, and has completed at least one year of experience of the type specified in
paragraph (b); (2) the board verifies the certifications; and (3) the person complies with
requirements for initial issuance of the certificate as a certified public accountant as
prescribed by the board by rule.

(b) An applicant for initial issuance of a certificate under this subdivision shall show
that the applicant has had one year of experience. Acceptable experience includes providing
any type of service or advice involving the use of accounting, attest, compilation,
management advisory, financial advisory, tax, or consulting skills, as verified by a licensee
and meeting requirements prescribed by the board by rule. Acceptable experience may be
gained through employment in government, industry, academia, or public practice.
Experience as an auditor in the Office of the Legislative Auditor or State Auditor, as verified
by a licensee, shall be acceptable experience.

new text begin (c) This subdivision expires July 1, 2030.
new text end

Sec. 14.

Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision
to read:

new text begin Subd. 6a. new text end

new text begin Certificate; required education and experience after June 30, 2030. new text end

new text begin (a)
On and after July 1, 2030, or during the transitional period as provided in subdivision 6b,
the board must grant a certificate as a certified public accountant to a person who has not
previously been certified and who has passed the examination required in this section if:
new text end

new text begin (1) the person certifies to the board that the person:
new text end

new text begin (i) has completed a master's degree at a college or university that is fully accredited by
a recognized accrediting agency listed with the United States Department of Education and
has completed at least one year of acceptable experience described in paragraph (b); or
new text end

new text begin (ii) has earned a bachelor's or graduate degree from a college or university that is fully
accredited by a recognized accrediting agency listed with the United States Department of
Education and has completed at least two years of acceptable experience described in
paragraph (b);
new text end

new text begin (2) the board verifies the certification under clause (1); and
new text end

new text begin (3) the person complies with requirements as prescribed by the board for an initial
certificate.
new text end

new text begin (b) Acceptable experience includes providing any type of service or advice that involves
accounting, attestation, compilation, management advisement, financial advisement, tax,
or consulting skills, as verified by a licensee and meeting requirements prescribed by the
board by rule. Acceptable experience may be gained through employment in government,
industry, academia, or public practice. Experience as an auditor in the Office of the
Legislative Auditor or the Office of the State Auditor, as verified by a licensee, is acceptable
experience.
new text end

Sec. 15.

Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision
to read:

new text begin Subd. 6b. new text end

new text begin Transitional period. new text end

new text begin (a) Until July 1, 2030, a person must be granted an initial
certificate as a certified public accountant if the person meets either:
new text end

new text begin (1) all requirements under subdivision 6; or
new text end

new text begin (2) all requirements under subdivision 6a.
new text end

new text begin (b) This subdivision expires July 1, 2030.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 16.

Minnesota Statutes 2024, section 326A.14, is amended to read:

326A.14 deleted text begin SUBSTANTIAL EQUIVALENCY deleted text end new text begin MOBILITY new text end .

Subdivision 1.

Requirements.

(a) An individual whose principal place of business is
not in this state deleted text begin and who holds a valid license in good standing as a certified public accountant
from any state which, upon verification, is in substantial equivalence with the certified
public accountant licensure requirements of section 326A.03, subdivisions 3, 4, and 6, deleted text end shall
be presumed to have qualifications substantially equivalent to this state's requirements and
shall have all the privileges of licensees of this state without the need to obtain a license deleted text begin . deleted text end new text begin ,
if the person:
new text end

new text begin (1) holds a valid certificate, license, or permit to practice as a certified public accountant
that was issued in another state and is in good standing to practice as a certified public
accountant in that state;
new text end

new text begin (2) has a bachelor's degree or higher from an accredited postsecondary school with an
accounting concentration or equivalent as determined by the board by rule; and
new text end

new text begin (3) has passed the Uniform CPA Examination.
new text end

new text begin (b) new text end Notwithstanding any contrary provision of this chapter, an individual who offers or
renders professional services, whether in person, by mail, telephone, or electronic means,
under deleted text begin this deleted text end paragraph new text begin (a) new text end : (1) shall be granted practice privileges in this state; (2) is subject
to the requirements in paragraph (c); and (3) is not required to provide any notice or other
submission.

deleted text begin (b) An individual whose principal place of business is not in this state and who holds a
valid license in good standing as a certified public accountant from any state whose certified
public accountant licensure qualifications, upon verification, are not substantially equivalent
with the licensure requirements of section 326A.03, subdivisions 3, 4, and 6, shall be
presumed to have qualifications substantially equivalent to this state's requirements and
shall have all the privileges of licensees of this state without the need to obtain a license if
the individual obtains verification, as specified in board rule, that the individual's
qualifications are substantially equivalent to the licensure requirements of section 326A.03,
subdivisions 3, 4, and 6. For purposes of this paragraph, any individual who passed the
Uniform CPA Examination and holds a valid license issued by any other state prior to
January 1, 2009, is exempt from the education requirement in section 326A.03, subdivision
6, paragraph (a), provided the individual meets the education requirement in section 326A.03,
subdivision 3. Notwithstanding any contrary provision of this chapter, an individual who
offers or renders professional services, whether in person, by mail, telephone, or electronic
means, under this paragraph: (1) shall, after the verification specified by adopted rules, be
granted practice privileges in this state; (2) is subject to the requirements in paragraph (c);
and (3) is not required to provide any notice or other submission.
deleted text end

(c) An individual licensee of another state exercising the privilege afforded under this
section and the firm which employs that licensee are deemed to have consented, as a condition
of the grant of this privilege:

(1) to the personal and subject matter jurisdiction and disciplinary authority of the board;

(2) to comply with this chapter and the board's rules;

(3) to the appointment of the state board that issued the license as the licensee's agent
upon whom process may be served in any action or proceeding by this board against the
licensee; and

(4) to cease offering or rendering professional services in this state individually and on
behalf of a firm in the event the license issued by the state of the individual's principal place
of business is no longer valid or in good standing.

(d) An individual who has been granted practice privileges under this section who
performs attest services as defined in section 326A.01, subdivision 2, clause (1), (4), or (5),
for any entity with its headquarters in this state, may only do so through a firm which has
obtained a permit under section 326A.05.

Subd. 2.

Use of title in another state.

A licensee of this state offering or rendering
services or using the CPA title in another state is subject to the same disciplinary action in
this state for which the licensee would be subject to discipline for an act committed in the
other state. The board shall investigate any complaint made by the board of accountancy
of another state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin Subdivision 1. new text end

new text begin Board of Accountancy. new text end

new text begin Minnesota Rules, part 1105.7900, item D, new text end new text begin is
repealed.
new text end

new text begin Subd. 2. new text end

new text begin Board of Cosmetologist Examiners. new text end

new text begin Laws 2024, chapter 120, article 3, section
2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 1 is effective the day following final enactment.
new text end

ARTICLE 5

MINNESOTA BUSINESS FILING FRAUD PREVENTION ACT

Section 1.

Minnesota Statutes 2024, section 13.485, subdivision 1, is amended to read:

Subdivision 1.

Scope.

The sections referred to in subdivisions 3 to deleted text begin 6 deleted text end new text begin 7 new text end are codified
outside this chapter. Those sections classify corporation data as other than public, place
restrictions on access to government data, or involve data sharing.

Sec. 2.

Minnesota Statutes 2024, section 13.485, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Business fraud investigations. new text end

new text begin Government data related to investigations under
sections 300.70 to 300.78 are governed by section 300.78.
new text end

Sec. 3.

new text begin [300.70] CITATION AND DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Citation. new text end

new text begin Sections 300.70 to 300.78 may be cited as the "Minnesota
Business Filing Fraud Prevention Act."
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of sections 300.70 to 300.78, the following terms
have the meanings given.
new text end

new text begin (b) "Complainant" means a person who (1) delivers a declaration of wrongful filing, and
(2) has a connection to the allegedly wrongful filing or the related business.
new text end

new text begin (c) "Filer" means the person who has allegedly made a wrongful filing.
new text end

new text begin (d) "Office" means the Office of the Secretary of State.
new text end

Sec. 4.

new text begin [300.71] DECLARATION OF WRONGFUL FILING.
new text end

new text begin Subdivision 1. new text end

new text begin Form and contents of declaration. new text end

new text begin (a) A complainant may deliver a
declaration of wrongful filing to the office if the complainant believes that a document filed
under chapters 301 to 323A:
new text end

new text begin (1) was not authorized to be filed; and
new text end

new text begin (2) was filed with the intent to: (i) modify the ownership, registered agent, business
address, contact information, governance, or other information of a business on record; or
(ii) register a business using another person's name, address, or identity.
new text end

new text begin (b) A declaration of wrongful filing must include:
new text end

new text begin (1) the file number of the allegedly wrongful filing;
new text end

new text begin (2) the complainant's name, mailing address, and email address;
new text end

new text begin (3) whether the complainant is employed by or has an ownership interest in the business
that is the subject of the filing;
new text end

new text begin (4) any information or evidence supporting the complainant's allegations under this
section;
new text end

new text begin (5) a statement verifying the complainant believes in good faith that the facts stated in
the declaration are true; and
new text end

new text begin (6) any other information the office deems necessary.
new text end

new text begin (c) The office must provide a form for declarations filed under this section. A complainant
must use the provided form when submitting a declaration of wrongful filing.
new text end

new text begin (d) A false material statement of fact in a declaration of wrongful filing or any other
document submitted under sections 300.70 to 300.78 is a violation of section 609.48.
new text end

new text begin Subd. 2. new text end

new text begin Review of declaration. new text end

new text begin (a) The office must promptly accept or reject a
declaration of wrongful filing.
new text end

new text begin (b) The office may reject a declaration of wrongful filing that is incomplete, does not
use the provided form, or the office reasonably believes was delivered with the intent to
harass or defraud the filer. The office may reject a declaration of wrongful filing if the office
has already issued a final order on the filing identified in the declaration.
new text end

new text begin Subd. 3. new text end

new text begin Nonexclusive remedy. new text end

new text begin The remedy in sections 300.70 to 300.78 is not exclusive.
An aggrieved party may seek district court action regardless of whether the individual has
initiated or completed the procedure described in these sections.
new text end

Sec. 5.

new text begin [300.72] NOTICE.
new text end

new text begin (a) When the office accepts a declaration of wrongful filing, the office must provide
notice of the declaration to the complainant and the filer. The notice must describe the
allegations made in the declaration and the process used to resolve the allegations. The
notice must prominently state the response timeline in section 300.73 and the consequences
if the filer does not respond. The notice must prominently state that a false statement of
material fact in any documents submitted under sections 300.70 to 300.78 is a violation of
section 609.48.
new text end

new text begin (b) The office must send the notice by first class mail, postage prepaid, to:
new text end

new text begin (1) the complainant at the mailing address provided in the declaration; and
new text end

new text begin (2) the filer at:
new text end

new text begin (i) the most recent registered business address associated with the filing named in the
declaration; or
new text end

new text begin (ii) if a mailing address for the filer cannot be identified, the notice may be served on
the filer as provided under section 5.25, subdivision 6.
new text end

new text begin (c) Notice is deemed received by the complainant and the filer upon mailing.
new text end

new text begin (d) If the notice to the filer is returned as undeliverable, the office may deem the filing
fraudulent and immediately issue a final order as provided under section 300.76,
notwithstanding the time period under section 300.73.
new text end

Sec. 6.

new text begin [300.73] RESPONSE.
new text end

new text begin (a) After notice is received, the filer must respond in writing to the allegations in the
declaration. The response must be received by the office within 21 calendar days of receipt
of the notice.
new text end

new text begin (b) The filer's response under this section must include any information refuting the
allegations contained in the complainant's declaration.
new text end

Sec. 7.

new text begin [300.74] PROCEDURE WHEN NO RESPONSE RECEIVED.
new text end

new text begin If the filer does not respond within the time period under section 300.73, the office must
deem the filing fraudulent and issue a final order as provided under section 300.76.
new text end

Sec. 8.

new text begin [300.75] PROCEDURE WHEN RESPONSE RECEIVED.
new text end

new text begin Subdivision 1. new text end

new text begin Preliminary determination. new text end

new text begin (a) If the filer responds within the period
under section 300.73, the office must further investigate the allegations in the declaration
and information in the response and make a preliminary determination regarding whether
the filing named in the declaration is fraudulent.
new text end

new text begin (b) The office may request additional information from the complainant and the filer if
necessary to make the preliminary determination.
new text end

new text begin Subd. 2. new text end

new text begin Notice of preliminary determination. new text end

new text begin The office must send notice of the
preliminary determination to the complainant and the filer in the manner described under
section 300.72. Notice is deemed received in the manner described under section 300.72.
new text end

new text begin Subd. 3. new text end

new text begin Response. new text end

new text begin After notice is received, the nonprevailing party must respond to
the preliminary determination within ten calendar days with additional information or
evidence in support of the nonprevailing party's position. The prevailing party may send
additional information or evidence within the same time period. The response must be
received by the office within the time period provided under this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Procedure if no second response is received. new text end

new text begin If the nonprevailing party does
not respond as required under subdivision 3, the preliminary determination becomes final
and the office must issue a final order under section 300.76.
new text end

new text begin Subd. 5. new text end

new text begin Procedure if second response is received. new text end

new text begin If the nonprevailing party responds
as required under subdivision 3, the office must consider the additional information provided,
make a final determination regarding whether the filing named in the declaration is fraudulent,
and issue a final order under section 300.76.
new text end

new text begin Subd. 6. new text end

new text begin Factors. new text end

new text begin When making a preliminary or final determination under this section,
the office may consider various factors, including but not limited to:
new text end

new text begin (1) whether the office has previously received declarations of wrongful filing or issued
final orders relating to the business, the filer, or the complainant;
new text end

new text begin (2) the previous filing history relating to the business, the filer, or the complainant;
new text end

new text begin (3) whether the filer or complainant failed to respond to a request for additional
information; and
new text end

new text begin (4) whether the office is able to independently verify the information provided by the
filer or complainant using publicly available information.
new text end

Sec. 9.

new text begin [300.76] FINAL ORDER.
new text end

new text begin Subdivision 1. new text end

new text begin Filings deemed fraudulent. new text end

new text begin (a) If the office deems a filing fraudulent
under section 300.74 or 300.75, the office must issue a final order under this subdivision.
The final order must provide the office's rationale for deeming the filing fraudulent.
new text end

new text begin (b) When a filing is deemed fraudulent pursuant to a final order under this subdivision,
the filing must be treated for legal purposes as if the filing never existed. In the case of a
business registered using a Minnesota resident's name, address, or identity without the
resident's authorization, the business is deemed dissolved.
new text end

new text begin (c) When a filing is deemed fraudulent pursuant to a final order, the office must:
new text end

new text begin (1) mark the unauthorized filing or the business record as unauthorized or fraudulent;
new text end

new text begin (2) redact names and addresses that were used without authorization; and
new text end

new text begin (3) retain a copy of the final order.
new text end

new text begin (d) In addition to the actions in paragraph (c), the office may:
new text end

new text begin (1) disable additional filing functionality on the business entity's record; or
new text end

new text begin (2) take other action the office deems necessary to prevent further unauthorized filings,
protect private information, or prevent misuse of unauthorized information.
new text end

new text begin Subd. 2. new text end

new text begin Filings deemed not fraudulent or insufficient evidence. new text end

new text begin If the office
determines that a filing is not fraudulent or that insufficient information is available to make
a determination, the office must issue a final order stating that the office is not removing
the filing from the database. The final order must provide the office's rationale for
determining that the filing is not fraudulent or that insufficient information is available to
make a determination.
new text end

Sec. 10.

new text begin [300.77] JUDICIAL REVIEW.
new text end

new text begin (a) Any party who is aggrieved by a final order under section 300.76 may appeal the
order to the district court of the Minnesota county where the business that is the subject of
the final order is registered or was registered before the business's dissolution or, if the
business is not registered in Minnesota, to the district court of Ramsey County. The aggrieved
party may also appeal the final order as part of any district court action between the filer
and complainant where the filing at issue is relevant to the issues in the case.
new text end

new text begin (b) The aggrieved party must serve a written copy of a notice of appeal upon the office
and any adverse party of record within 30 calendar days after the date the final order was
issued and must also file the original notice and proof of service with the court administrator
of the district court. Service may be made in person or by mail. Service by mail is complete
upon mailing. The court administrator is prohibited from requiring a filing fee for appeals
taken pursuant to this section.
new text end

new text begin (c) The office may elect to become a party to the proceedings in the district court.
new text end

new text begin (d) The court may order that the office furnish the court and all parties to the proceedings
with a copy of the decision, the filing that is the subject of the decision, and any materials
or information submitted to the office. Any materials provided under this section that are
filed with the court must be done so under restricted access unless the court orders otherwise.
new text end

new text begin (e) A party may obtain a hearing at a special term of the district court by serving a written
notice of the hearing's time and place at least ten days before the date of the hearing.
new text end

new text begin (f) A party aggrieved by the order of the district court may appeal the order as in other
civil cases. Costs or disbursements must not be taxed against a party. A filing fee or bond
must not be required of a party.
new text end

Sec. 11.

new text begin [300.78] DATA PRACTICES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, "nonpublic data" has the meaning
given in section 13.02, subdivision 9, and "private data on individuals" has the meaning
given in section 13.02, subdivision 12.
new text end

new text begin Subd. 2. new text end

new text begin Data classification. new text end

new text begin Data submitted by a complainant or filer under sections
300.70 to 300.78 is classified as nonpublic data or private data on individuals. A final order
under section 300.76 is public data, subject to the following: the complainant or filer's
personal contact information is classified as private data on individuals. The unredacted
version of a filing deemed fraudulent pursuant to a final order under section 300.76,
subdivision 1, is classified as nonpublic data or private data on individuals. The version of
the filing that has been redacted pursuant to section 300.76, subdivision 1, paragraph (c),
is classified as public data.
new text end

new text begin Subd. 3. new text end

new text begin Dissemination permitted. new text end

new text begin Notwithstanding subdivision 2, the office may
disseminate data of any classification collected, created, or maintained under sections 300.70
to 300.78:
new text end

new text begin (1) to the attorney general to aid the office in the investigation and review of a filing
that is the subject of a declaration of wrongful filing;
new text end

new text begin (2) to a person or agency if the office determines that access to the data aids a criminal
or civil investigation; or
new text end

new text begin (3) if required or authorized by a court order or other state or federal law.
new text end

Sec. 12.

new text begin [300.80] PROHIBITION ON DECEPTIVE BUSINESS MAILINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "solicitation" means a
communication that is sent by a nongovernment third party to a business and that purports
to:
new text end

new text begin (1) notify the business of an operating requirement, including but not limited to filing
documents with or retrieving documents from the Office of the Minnesota Secretary of
State; or
new text end

new text begin (2) offer a service that relates to filing documents with, producing documents for, or
reporting information to the Office of the Minnesota Secretary of State.
new text end

new text begin Subd. 2. new text end

new text begin Design and content requirements. new text end

new text begin (a) A solicitation must:
new text end

new text begin (1) include a clear statement indicating that the solicitation is an advertisement and is
not from a government agency. The statement must be placed at the top of a physical
document or the beginning of an electronic communication and must be in at least 24-point
font. All other text in the document must be smaller than the statement required by this
clause;
new text end

new text begin (2) provide information indicating where an individual is able to directly file documents
with the secretary of state or retrieve copies of public records;
new text end

new text begin (3) disclose the name and physical address of the company sending the solicitation. The
physical address must not be a post office box; and
new text end

new text begin (4) for a mailed solicitation, prominently display in capital letters on the envelope or
outer wrapper the words "THIS IS NOT A GOVERNMENT DOCUMENT."
new text end

new text begin (b) The overall design and language of a solicitation must not:
new text end

new text begin (1) create the impression that the solicitation is an official government notice or document;
new text end

new text begin (2) incorporate the Minnesota state seal or other logo or branding of the state or any
state agency; or
new text end

new text begin (3) indicate or imply a legal duty to act on the solicitation or a penalty for failure to act
on the solicitation.
new text end

new text begin Subd. 3. new text end

new text begin Penalties. new text end

new text begin (a) A person who sends a solicitation that does not comply with the
requirements of this section is guilty of a misdemeanor.
new text end

new text begin (b) A violation of this section is a violation of sections 325D.43 to 325D.48.
new text end

Sec. 13.

Minnesota Statutes 2024, section 609.48, subdivision 1, is amended to read:

Subdivision 1.

Acts constituting.

Whoever makes a false material statement not believing
it to be true in any of the following cases is guilty of perjury and may be sentenced as
provided in subdivision 4:

(1) in or for an action, hearing or proceeding of any kind in which the statement is
required or authorized by law to be made under oath or affirmation;

(2) in any writing which is required or authorized by law to be under oath or affirmation;

(3) in any writing made according to section 358.115;

(4) in any writing made according to section 358.116; deleted text begin or
deleted text end

new text begin (5) in any writing made according to sections 300.70 to 300.78; or
new text end

deleted text begin (5) deleted text end new text begin (6) new text end in any other case in which the penalties for perjury are imposed by law and no
specific sentence is otherwise provided.

Sec. 14. new text begin RULEMAKING.
new text end

new text begin The secretary of state may adopt rules to carry out the provisions of this act.
Notwithstanding section 14.125, no time limit applies to the authority granted under this
section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 3 to 11 are effective for filings made on or after January 1, 2026.
new text end

ARTICLE 6

BUSINESS FILING FEES

Section 1.

Minnesota Statutes 2024, section 302A.153, is amended to read:

302A.153 EFFECTIVE DATE OF ARTICLES.

Articles of incorporation are effective and corporate existence begins when the articles
of incorporation are filed with the secretary of state accompanied by a payment of deleted text begin $135 deleted text end new text begin
$145 new text end , which includes a deleted text begin $100 deleted text end new text begin $110 new text end incorporation fee in addition to the $35 filing fee required
by section 302A.011, subdivision 11. Articles of amendment are effective when filed with
the secretary of state or at another time within 30 days after filing if the articles of amendment
so provide. Articles of merger must be accompanied by a fee of $60, which includes a $25
merger fee in addition to the $35 filing fee required by section 302A.011, subdivision 11.

Sec. 2.

Minnesota Statutes 2024, section 303.06, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Fees. new text end

new text begin The fee for filing an application for a certificate of authority with the
secretary of state is $60.
new text end

Sec. 3.

Minnesota Statutes 2024, section 303.21, is amended to read:

303.21 FEES.

Subd. 3.

Other instruments.

A fee of $50 shall be paid to the secretary of state for filing
any instrument, other than the new text begin application for certificate of authority required by section
303.06 and the new text end annual deleted text begin report deleted text end new text begin renewal new text end required by section 303.14, required or permitted to
be filed under the provisions of this chapter. The fees shall be paid at the time of the filing
of the instrument.

Sec. 4.

Minnesota Statutes 2024, section 308A.131, subdivision 2, is amended to read:

Subd. 2.

Filing articles.

(a) The original articles must be filed with the secretary of state.

(b) The fee for filing the articles with the secretary of state is deleted text begin $60 deleted text end new text begin $65 new text end .

Sec. 5.

Minnesota Statutes 2024, section 308B.215, subdivision 2, is amended to read:

Subd. 2.

Filing.

The original articles shall be filed with the secretary of state. The fee
for filing the articles with the secretary of state is deleted text begin $60 deleted text end new text begin $65 new text end .

Sec. 6.

Minnesota Statutes 2024, section 317A.151, subdivision 2, is amended to read:

Subd. 2.

Effective date.

Articles of incorporation are effective and corporate existence
begins when the articles of incorporation are filed with the secretary of state accompanied
by a payment of deleted text begin $70 deleted text end new text begin $75 new text end , which includes a deleted text begin $35 deleted text end new text begin $40 new text end incorporation fee in addition to the $35
filing fee required by section 317A.011, subdivision 8. Articles of amendment are effective
when filed with the secretary of state or at another time within 31 days after filing if the
articles of amendment so provide.

Sec. 7.

Minnesota Statutes 2024, section 321.0206, is amended to read:

321.0206 DELIVERY TO AND FILING OF RECORDS BY SECRETARY OF
STATE; EFFECTIVE TIME AND DATE.

(a) A record authorized or required to be delivered to the secretary of state for filing
under this chapter must be captioned to describe the record's purpose, be in a medium
permitted by the secretary of state, and be delivered to the secretary of state. Unless the
secretary of state determines that a record does not comply with the filing requirements of
this chapter, and if the appropriate filing fees have been paid, the secretary of state shall
file the record and:

(1) for a statement of dissociation, send:

(A) a copy of the filed statement to the person which the statement indicates has
dissociated as a general partner; and

(B) a copy of the filed statement to the limited partnership;

(2) for a statement of withdrawal, send:

(A) a copy of the filed statement to the person on whose behalf the record was filed; and

(B) if the statement refers to an existing limited partnership, a copy of the filed statement
to the limited partnership; and

(3) for all other records, send a copy of the filed record to the person on whose behalf
the record was filed.

(b) Upon request and payment of a fee, the secretary of state shall send to the requester
a certified copy of the requested record.

(c) Except as otherwise provided in sections 321.0116 and 321.0207, a record delivered
to the secretary of state for filing under this chapter may specify an effective time and a
delayed effective date. Except as otherwise provided in this chapter, a record filed by the
secretary of state is effective:

(1) if the record does not specify an effective time and does not specify a delayed effective
date, on the date and at the time the record is filed as evidenced by the secretary of state's
endorsement of the date and time on the record;

(2) if the record specifies an effective time but not a delayed effective date, on the date
the record is filed at the time specified in the record;

(3) if the record specifies a delayed effective date but not an effective time, at 12:01
a.m. on the earlier of:

(A) the specified date; or

(B) the 30th day after the record is filed; or

(4) if the record specifies an effective time and a delayed effective date, at the specified
time on the earlier of:

(A) the specified date; or

(B) the 30th day after the record is filed.

(d) The appropriate fees for filings under this chapter are:

(1) for filing a certificate of limited partnership, deleted text begin $100 deleted text end new text begin $110 new text end ;

(2) for filing an amended certificate of limited partnership, $50;

(3) for filing a name reservation for a limited partnership name, $35;

(4) for filing any other record, other than the annual renewal required by section 321.0210,
for which no fee must be charged, required or permitted to be delivered for filing, $50;

(5) for filing a certificate requesting authority to transact business in Minnesota as a
foreign limited partnership, deleted text begin $100 deleted text end new text begin $110 new text end ;

(6) for filing an application of reinstatement, $25;

(7) for filing a name reservation for a foreign limited partnership name, $35; and

(8) for filing any other record, other than the annual renewal required by section 321.0210,
for which no fee must be charged, required or permitted to be delivered for filing on a
foreign limited partnership authorized to transact business in Minnesota, $50.

Sec. 8.

Minnesota Statutes 2024, section 322C.0201, subdivision 4, is amended to read:

Subd. 4.

Formation.

(a) A limited liability company is formed when articles of
organization have been filed with the secretary of state accompanied by a payment of deleted text begin $135 deleted text end new text begin
$145 new text end .

(b) Except in a proceeding by this state to dissolve a limited liability company, the filing
of the articles of organization by the secretary of state is conclusive proof that the organizer
satisfied all conditions to the formation of a limited liability company.

(c) The formation of a limited liability company does not by itself cause any person to
become a member. However, this chapter does not preclude an agreement, made before or
after formation of a limited liability company, which provides that one or more persons will
become members, or acknowledging that one or more persons became members, upon or
otherwise in connection with the formation of the limited liability company.

Sec. 9.

Minnesota Statutes 2024, section 322C.0802, is amended to read:

322C.0802 APPLICATION FOR CERTIFICATE OF AUTHORITY.

Before transacting business in this state, a foreign limited liability company shall obtain
a certificate of authority to transact business in this state by filing an application with the
secretary of state together with a total fee of deleted text begin $185 deleted text end new text begin $195 new text end . The application must state:

(1) the name of the company and any alternate name adopted pursuant to section
322C.0805, subdivision 1;

(2) the name of the state or other jurisdiction under whose law the company is formed;

(3) a statement that the foreign limited liability company has complied with the
organizational laws in the jurisdiction under whose laws the company is formed;

(4) the street address of the company's principal place of business and, if the law of the
jurisdiction under which the company is formed requires the company to maintain an office
in that jurisdiction, the street address of the required office; and

(5) the name and street address of the company's initial registered office and agent for
service of process in this state.

Sec. 10.

Minnesota Statutes 2024, section 323A.0101, is amended to read:

323A.0101 DEFINITIONS.

In this chapter:

(1) "Business" includes every trade, occupation, and profession.

(2) "Debtor in bankruptcy" means a person who is the subject of:

(i) an order for relief under title 11 of the United States Code or a comparable order
under a successor statute of general application; or

(ii) a comparable order under federal, state, or foreign law governing insolvency.

(3) "Distribution" means a transfer of money or other property from a partnership to a
partner in the partner's capacity as a partner or to the partner's transferee.

(4) "Executed" means signed.

(5) "Filed" or "filed with the secretary of state" means that a document meeting the
applicable requirements of this chapter, signed, and accompanied by a filing fee of deleted text begin $135 deleted text end new text begin
$145 new text end , has been delivered to the secretary of state. The secretary of state shall endorse on
the document the word "Filed" and the month, day, and year of filing; record the document
in the Office of the Secretary of State; and return a document to the person who delivered
it for filing.

(6) "Foreign limited liability partnership" means a partnership that:

(i) is formed under laws other than the laws of this state; and

(ii) has the status of a limited liability partnership under those laws.

(7) "Limited liability partnership" means a partnership that has filed a statement of
qualification under section 323A.1001 and does not have a similar statement in effect in
any other jurisdiction.

(8) "Partnership" means an association of two or more persons to carry on as co-owners
a business for profit, including a limited liability partnership, formed under section
323A.0202, predecessor law, or comparable law of another jurisdiction.

(9) "Partnership agreement" means the agreement, whether written, oral, or implied,
among the partners concerning the partnership, including amendments to the partnership
agreement.

(10) "Partnership at will" means a partnership in which the partners have not agreed to
remain partners until the expiration of a definite term or the completion of a particular
undertaking.

(11) "Partnership interest" or "partner's interest in the partnership" means all of a partner's
interests in the partnership, including the partner's transferable interest and all management
and other rights.

(12) "Person" means an individual, corporation, business trust, estate, trust, partnership,
association, joint venture, government, governmental subdivision, agency, or instrumentality,
or any other legal or commercial entity.

(13) "Property" means all property, real, personal, or mixed, tangible or intangible, or
any interest in property.

(14) "Record," "recorded," and "recording" mean that a certified copy of a statement
meeting the applicable requirements of this chapter as filed with the secretary of state has
been recorded in the office of the county recorder in the county in which the real property
affected by the statement is located or, if the real property is registered under chapter 508
or 508A, memorialized on the certificate of title for that property.

(15) "Signed" means that:

(i) the signature of a person has been written on a document, as provided in section
645.44, subdivision 14; and

(ii) with respect to a document that may be filed with the secretary of state, the document
has been signed by a person authorized to do so by this chapter, by the partnership agreement,
or by a resolution approved as provided in the partnership agreement.

A signature on a document may be a facsimile affixed, engraved, printed, placed, stamped
with indelible ink, transmitted by facsimile or electronically, or in any other manner
reproduced on the document.

(16) "State" means a state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, or any territory or insular possession subject to the
jurisdiction of the United States.

(17) "Statement" means a statement of partnership authority under section 323A.0303,
a statement of denial under section 323A.0304, a statement of dissociation under section
323A.0704, a statement of dissolution under section 323A.0805, a statement of merger
under section 323A.0907, a statement of qualification under section 323A.1001, a statement
of foreign qualification under section 323A.1102, or an amendment or cancellation of any
of the foregoing.

(18) "Transfer" includes an assignment, conveyance, lease, mortgage, deed, and
encumbrance.

ARTICLE 7

LOCAL GOVERNMENT POLICY

Section 1.

Minnesota Statutes 2024, section 13D.02, subdivision 1, is amended to read:

Subdivision 1.

Conditions.

deleted text begin (a) deleted text end A meeting governed by section 13D.01, subdivisions 1,
2, 4, and 5, and this section may be conducted by interactive technology so long as:

(1) all members of the body participating in the meeting, wherever their physical location,
can hear and see one another and can hear and see all discussion and testimony presented
at any location at which at least one member is present;

(2) members of the public present at the regular meeting location of the body can hear
and see all discussion and testimony and all votes of members of the body;

(3) at least one member of the body is physically present at the regular meeting location; new text begin
and
new text end

(4) all votes are conducted by roll call so each member's vote on each issue can be
identified and recorded deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (5) each location at which a member of the body is present is open and accessible to the
public.
deleted text end

deleted text begin (b) A meeting satisfies the requirements of paragraph (a), although a member of the
public body participates from a location that is not open or accessible to the public, if the
member has not participated more than three times in a calendar year from a location that
is not open or accessible to the public, and:
deleted text end

deleted text begin (1) the member is serving in the military and is at a required drill, deployed, or on active
duty; or
deleted text end

deleted text begin (2) the member has been advised by a health care professional against being in a public
place for personal or family medical reasons.
deleted text end

Sec. 2.

Minnesota Statutes 2024, section 13D.02, subdivision 4, is amended to read:

Subd. 4.

Notice of regular deleted text begin and all member deleted text end new text begin meeting new text end locations.

If interactive technology
is used to conduct a regular, special, or emergency meeting, the public body shall provide
notice of the regular meeting location and deleted text begin notice of any location where a member of the
public body will be participating deleted text end new text begin the fact that members may participate new text end in the meeting by
interactive technology deleted text begin , except for the locations of members participating pursuant to
subdivision 1, paragraph (b) deleted text end . The timing and method of providing notice new text begin of the regular
meeting location new text end must be as described in section 13D.04.

Sec. 3.

Minnesota Statutes 2024, section 222.37, subdivision 1, is amended to read:

Subdivision 1.

Use requirements.

new text begin (a) new text end Any water power, telegraph, telephone, pneumatic
tube, pipeline, community antenna television, cable communications or electric light, heat,
power company, entity that receives a route permit under chapter 216E for a high-voltage
transmission line necessary to interconnect an electric power generating facility with
transmission lines or associated facilities of an entity that directly, or through its members
or agents, provides retail electric service in the state, or fire department may use public
roads for the purpose of constructing, using, operating, and maintaining lines, subways,
canals, conduits, transmission lines, hydrants, or dry hydrants, for their business, but such
lines shall be so located as in no way to interfere with the safety and convenience of ordinary
travel along or over the same; and, in the construction and maintenance of such line, subway,
canal, conduit, transmission lines, hydrants, or dry hydrants, the entity shall be subject to
all reasonable regulations imposed by the governing body of any county, town or city in
which such public road may be. If the governing body does not require the entity to obtain
a permit, an entity shall notify the governing body of any county, town, or city having
jurisdiction over a public road prior to the construction or major repair, involving extensive
excavation on the road right-of-way, of the entity's equipment along, over, or under the
public road, unless the governing body waives the notice requirement. A waiver of the
notice requirement must be renewed on an annual basis. For emergency repair an entity
shall notify the governing body as soon as practical after the repair is made. Nothing herein
shall be construed to grant to any person any rights for the maintenance of a telegraph,
telephone, pneumatic tube, community antenna television system, cable communications
system, or light, heat, power system, electric power generating system, high-voltage
transmission line, or hydrant system within the corporate limits of any city until such person
shall have obtained the right to maintain such system within such city or for a period beyond
that for which the right to operate such system is granted by such city.

new text begin (b) Any public water district, sewer district, or combination water and sewer district
established under chapter 116A may install water and sewer lines and all other ancillary
infrastructure within a public road right-of-way in accordance with paragraph (a).
new text end

Sec. 4.

Minnesota Statutes 2024, section 331A.10, subdivision 2, is amended to read:

Subd. 2.

Discontinuance.

new text begin (a) new text end When a newspaper ceases to be published before the
publication of a public notice is commenced, or when commenced ceases before the
publication is completed, new text begin the following procedures apply: (1) when the publication is required
by court order, new text end the order for publication deleted text begin , when one is required in the first instance, deleted text end may be
amended by order of the court or judge, to designate another newspaper, as may be necessary deleted text begin .
If no order is required in the first instance, deleted text end new text begin ; or (2) when the publication is required by law,
rule, or ordinance, the new text end publication may be made or completed in any other qualified
newspaper.

new text begin (b) If no qualified newspaper is available for publication of a public notice after the
discontinuance of a newspaper, the political subdivision must post the information required
to be published on the political subdivision's website until another qualified newspaper is
identified, which shall then be designated. During the time when no qualified newspaper is
available, the political subdivision must also post the public notice on the Minnesota
Newspaper Association's statewide public notice website, at no additional cost to the political
subdivision.
new text end

new text begin (c) new text end Any time during which the notice is published in deleted text begin the first deleted text end new text begin a new text end newspaper new text begin prior to its
discontinuance new text end shall be calculated as a part of the time required for the publication, proof
of which may be made by affidavit of any person acquainted with the facts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2024, section 367.36, subdivision 1, is amended to read:

Subdivision 1.

Transition; audit.

(a) In a town in which option D is adopted, the
incumbent treasurer shall continue in office until the expiration of the term. Thereafter, or
at any time a vacancy other than a temporary vacancy under section 367.03 occurs in the
position, the duties of the treasurer prescribed by law shall be performed by the clerk who
shall be referred to as the clerk-treasurer. If option D is adopted at an election in which the
treasurer is also elected, the election of the treasurer's position is void.

(b) If the offices of clerk and treasurer are combined and the town's annual revenue new text begin for
all governmental and enterprise funds combined new text end is more than the amount in paragraph (c),
the town board shall provide for an annual audit of the town's financial affairs by the state
auditor or a public accountant in accordance with minimum audit procedures prescribed by
the state auditor. If the offices of clerk and treasurer are combined and the town's annual
revenue new text begin for all governmental and enterprise funds combined new text end is the amount in paragraph (c)
or less, the town board shall provide for an audit of the town's financial affairs by the state
auditor or a public accountant in accordance with minimum audit procedures prescribed by
the state auditor at least once every five years, which audit shall be for a one-year period
to be determined at random by the person conducting the audit. Upon completion of an
audit by a public accountant, the public accountant shall forward a copy of the audit to the
state auditor. For purposes of this subdivision, "public accountant" means a certified public
accountant or a certified public accounting firm licensed in accordance with chapter 326A.

(c) For the purposes of paragraph (b), the amount in deleted text begin 2004 deleted text end new text begin 2025 new text end is deleted text begin $150,000 deleted text end new text begin $1,000,000 new text end ,
and deleted text begin in 2005 and after, $150,000 deleted text end new text begin is new text end adjusted new text begin annually thereafter new text end for inflation using the annual
implicit price deflator for state and local expenditures as published by the United States
Department of Commerce.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and applies to audits
performed for 2026 and thereafter.
new text end

Sec. 6.

new text begin [383A.151] RAMSEY COUNTY ECONOMIC DEVELOPMENT
AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin (a) There is created in the county of Ramsey a public body,
corporate and politic, known as the Ramsey County Economic Development Authority,
that has the powers contained in sections 469.090 to 469.108, except for sections 469.101,
subdivision 19, 469.102, and 469.107; the powers of a housing and redevelopment authority
under sections 469.001 to 469.047; and the powers of a city under sections 469.124 to
469.133. For purposes of applying chapter 469 to the county of Ramsey, the county has all
the powers and duties of a city; the county board has all the powers and duties of a governing
body; the chair of the county board has all the powers and duties of a mayor; and, with
respect to the exercise of the powers under section 469.008, the area of operation includes
the area within the territorial boundaries of the county.
new text end

new text begin (b) Section 469.1082 does not apply to the county of Ramsey, except for section
469.1082, subdivision 5.
new text end

new text begin Subd. 2. new text end

new text begin Commissioners. new text end

new text begin Notwithstanding the provisions of chapter 469 or other law
to the contrary, the Ramsey County Economic Development Authority consists of seven
commissioners. The county board must appoint the commissioners and fill vacancies in the
office of any commissioner. Pursuant to Ramsey County Resolution No. 94-357, dated July
26, 1994, the Ramsey County Board of Commissioners also constitutes the Ramsey County
Housing and Redevelopment Authority. The board may, by resolution, appoint the sitting
commissioners of the Ramsey County Housing and Redevelopment Authority as
commissioners of the Ramsey County Economic Development Authority, the terms of each
commissioner corresponding accordingly.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
Ramsey County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 7.

new text begin [383A.152] RAMSEY COUNTY HOUSING AND REDEVELOPMENT
AUTHORITY; ADDITIONAL POWERS.
new text end

new text begin The Ramsey County Housing and Redevelopment Authority, established pursuant to
Ramsey County Resolution No. 93-155, dated March 9, 1993, shall have the powers and
duties of the Ramsey County Economic Development Authority under section 383A.151
and shall retain all the powers of a housing and redevelopment authority under sections
469.001 to 469.047. For purposes of applying chapter 469 to the county of Ramsey, the
county has all the powers and duties of a city; the county board has all the powers and duties
of a governing body; the chair of the county has all the powers and duties of a mayor; and,
with respect to the exercise of the powers under section 469.008, the area of operation
includes the area within the territorial boundaries of the county.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
Ramsey County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 8.

Minnesota Statutes 2024, section 383C.035, is amended to read:

383C.035 UNCLASSIFIED CIVIL SERVICE.

(a) The officers and employees of the county and of any agency, board, or commission,
supported in whole or in part by taxation upon the taxable property of the county or appointed
by the judges of the district court for the county, are divided into the unclassified and
classified service.

(b) The unclassified service comprises:

(1) all officers elected by popular vote or persons appointed to fill vacancies in such
offices;

(2) superintendent or principal administrative officer or comptroller of any separate
department of county government which is now or hereafter created pursuant to law, who
is directly responsible to the board of county commissioners or any other board or
commission, as well as the county agricultural agents reporting to the county extension
committee;

(3) members of nonpaid board, or commissioners appointed by the board of county
commissioners or acting in an advisory capacity;

(4) assistant county attorneys or special investigators in the employ of the county attorney.
For purposes of this section, special investigators are defined as all nonclerical positions in
the employ of the county attorney;

(5) all common labor temporarily employed on an hourly basis;

(6) not more than a total of nine full-time equivalent clerical employees serving the
county board and administrator;

(7) a legislative lobbyist/grant coordinator appointed by the county board to act as
legislative liaison with the St. Louis County legislative delegation and pursue legislative
concerns and grant opportunities for the county, and the clerk for that position;

(8) any department head and deputy director designated by the county board;

(9) three administrative assistants in the county administrator's office;

(10) the county administrator and deleted text begin two deleted text end deputy administrators; and

(11) all court bailiffs.

(c) The classified service includes all other positions now existing and hereinafter created
in the service of the county or any board or commission, agency, or offices of the county.

Sec. 9.

Minnesota Statutes 2024, section 412.02, subdivision 3, is amended to read:

Subd. 3.

Clerk, treasurer combined; audit standards.

(a) In cities operating under
the standard plan of government the council may by ordinance adopted at least 60 days
before the next regular city election combine the offices of clerk and treasurer in the office
of clerk-treasurer, but such an ordinance shall not be effective until the expiration of the
term of the incumbent treasurer or when an earlier vacancy occurs. After the effective date
of the ordinance, the duties of the treasurer and deputy treasurer as prescribed by this chapter
shall be performed by the clerk-treasurer or a duly appointed deputy. The offices of clerk
and treasurer may be reestablished by ordinance.

(b) If the offices of clerk and treasurer are combined as provided by this section and the
city's annual revenue for all governmental and enterprise funds combined is more than the
amount in paragraph (c), the council shall provide for an annual audit of the city's financial
affairs by the state auditor or a public accountant in accordance with minimum auditing
procedures prescribed by the state auditor. If the offices of clerk and treasurer are combined
and the city's annual revenue for all governmental and enterprise funds combined is the
amount in paragraph (c), or less, the council shall provide for an audit of the city's financial
affairs by the state auditor or a public accountant in accordance with minimum audit
procedures prescribed by the state auditor at least once every five years, which audit shall
be for a one-year period to be determined at random by the person conducting the audit.

(c) For the purposes of paragraph (b), the amount in deleted text begin 2004 deleted text end new text begin 2025 new text end is deleted text begin $150,000 deleted text end new text begin $1,000,000 new text end ,
and deleted text begin in 2005 and after, $150,000 deleted text end new text begin is new text end adjusted new text begin annually thereafter new text end for inflation using the annual
implicit price deflator for state and local expenditures as published by the United States
Department of Commerce.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and applies to audits
performed for 2026 and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2024, section 412.591, subdivision 3, is amended to read:

Subd. 3.

Audit standards if combined.

(a) If the offices of clerk and treasurer are
combined as provided by this section, and the city's annual revenue for all governmental
and enterprise funds combined is more than the amount in paragraph (b), the council shall
provide for an annual audit of the city's financial affairs by the state auditor or a certified
public accountant in accordance with minimum procedures prescribed by the state auditor.
If the offices of clerk and treasurer are combined and the city's annual revenue for all
governmental and enterprise funds combined is the amount in paragraph (b), or less, the
council shall provide for an audit of the city's financial affairs by the state auditor or a
certified public accountant in accordance with minimum audit procedures prescribed by the
state auditor at least once every five years, which audit shall be for a one-year period to be
determined at random by the person conducting the audit.

(b) For the purposes of paragraph (a), the amount in deleted text begin 2004 deleted text end new text begin 2025 new text end is deleted text begin $150,000 deleted text end new text begin $1,000,000 new text end ,
and deleted text begin in 2005 and after, $150,000 deleted text end new text begin is new text end adjusted new text begin annually thereafter new text end for inflation using the annual
implicit price deflator for state and local expenditures as published by the United States
Department of Commerce.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and applies to audits
performed for 2026 and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2024, section 466.01, subdivision 1, is amended to read:

Subdivision 1.

Municipality.

For the purposes of sections 466.01 to 466.15,
"municipality" means any city, whether organized under home rule charter or otherwise,
any county, town, public authority, public corporation, nonprofit firefighting corporation
that has associated with it a relief association as defined in section 424A.001, subdivision
4, special district, school district, however organized, new text begin public water or sewer system formed
under chapter 116A, new text end county agricultural society organized pursuant to chapter 38, joint
powers board or organization created under section 471.59 or other statute, public library,
regional public library system, multicounty multitype library system, the following local
collaboratives whose plans have been approved by the Children's Cabinet: family services
collaboratives established under section 142D.15, children's mental health collaboratives
established under sections 245.491 to 245.495, or a collaborative established by the merger
of a children's mental health collaborative and a family services collaborative, other political
subdivision, community action agency, or a limited partnership in which a community action
agency is the sole general partner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and applies to causes
of action accruing on or after that date.
new text end

Sec. 12.

new text begin [471.3458] VOLUNTEER EMERGENCY SERVICES PROVIDERS; TIRE
PURCHASES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Fire department" has the meaning given in section 299N.01, subdivision 2.
new text end

new text begin (c) "Municipality" means a statutory or home rule charter city or a town.
new text end

new text begin (d) "Volunteer emergency services provider" means a volunteer firefighter, as defined
in section 299N.03, subdivision 7; volunteer ambulance attendant, as defined in section
144E.001, subdivision 15; volunteer paramedic; or any other volunteer emergency medical
personnel performing emergency medical services for a municipality or fire department.
new text end

new text begin Subd. 2. new text end

new text begin Tire purchases. new text end

new text begin A municipality or fire department may authorize a volunteer
emergency services provider who has performed services for the municipality or fire
department for at least three years and who is currently performing services for the
municipality or fire department to purchase up to four vehicle tires for one personal vehicle
owned by the volunteer emergency services provider every three years under a contract for
tires from which the municipality or fire department purchases vehicle tires. The volunteer
emergency services provider must pay for any tires purchased under this section, including
all applicable taxes and fees.
new text end

new text begin Subd. 3. new text end

new text begin Authorization requirements. new text end

new text begin (a) The authorization by a municipality or fire
department to purchase tires under this section must be in writing on the municipality's or
fire department's letterhead and include the following:
new text end

new text begin (1) the volunteer emergency services provider's name;
new text end

new text begin (2) the number of years the volunteer emergency services provider has performed services
for the municipality or fire department;
new text end

new text begin (3) the license plate number of the personal vehicle on which the tires will be placed;
and
new text end

new text begin (4) a reference to the contract under which the municipality or fire department purchases
vehicle tires.
new text end

new text begin (b) The municipality or fire department must document how many tires each volunteer
emergency services provider purchases during the periods specified in this section.
new text end

Sec. 13.

Minnesota Statutes 2024, section 477A.017, subdivision 3, is amended to read:

Subd. 3.

Conformity.

Other law to the contrary notwithstanding, in order to receive
distributions under sections 477A.011 to 477A.03, counties deleted text begin and deleted text end new text begin , new text end cities new text begin , and towns new text end must
conform to the standards set in subdivision 2 in making all financial reports required to be
made to the state auditor.

Sec. 14. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2024, sections 383C.07; and 383C.74, subdivisions 1, 2, 3, and
4, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2024, section 471.9998, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: S3045-1

16B.328 OUTDOOR LIGHTING FIXTURES MODEL ORDINANCE.

Subd. 2.

Model ordinance.

The commissioner of administration, in consultation with the commissioner of commerce, associations for local governments, and any other interested person, shall develop a model ordinance that can be adapted for use by cities, counties, and towns, governing outdoor lighting to reduce light pollution. The model ordinance must address:

(1) standards for lighting on private property; outdoor advertising; lighting on commercial, industrial, or institutional property; canopies covering fueling stations; and public streets, sidewalks, and alleys;

(2) how illumination levels should be measured;

(3) possible exemptions, such as for temporary emergency or hazard lighting;

(4) recommended elements for an exterior lighting plan for a development;

(5) treatment of nonconforming lighting;

(6) lighting standards that might apply in special subdistricts;

(7) light pole maximum heights; and

(8) light trespass.

16B.45 FUNCTION OF LEGISLATIVE AUDITOR.

The legislative auditor may conduct performance evaluations of all systems analysis, information services, and computerization efforts of agencies, the University of Minnesota, and metropolitan boards, agencies, and commissions. Upon request of the governing body or the state Information Systems Advisory Council, the legislative auditor shall conduct the same services for political subdivisions of the state and report the findings to the governor and the legislature. The cost of these evaluations must be paid by the agencies being evaluated.

16C.36 REORGANIZATION SERVICES UNDER MASTER CONTRACT.

The commissioner of administration must make available under a master contract program a list of eligible contractors who can assist state agencies in using data analytics to:

(1) accomplish agency reorganization along service rather than functional lines in order to provide more efficient and effective service; and

(2) bring about internal reorganization of management functions in order to flatten the organizational structure by requiring that decisions are made closer to the service needed, eliminating redundancies, and optimizing the span of control ratios to public and private sector industry benchmarks.

43A.315 STATE EMPLOYEE EFFICIENT USE OF HEALTH CARE INCENTIVE PROGRAM.

The commissioner of management and budget may develop and implement a program that creates an incentive for efficient use by state employees of State Employee Group Insurance Program (SEGIP). The program may reward employees covered by SEGIP as a group if per capita employee health care costs paid by SEGIP for a calendar year prove to be less than estimated by the commissioner prior to the beginning of the calendar year. The reward may consist of payments of one-half of the cost-savings into the employees' health reimbursement accounts, to be made no later than June 30 of the following calendar year.

43A.317 MINNESOTA EMPLOYEES INSURANCE PROGRAM.

Subdivision 1.

Intent.

The legislature finds that the creation of a statewide program to provide employers with the advantages of a large pool for insurance purchasing would advance the welfare of the citizens of the state.

Subd. 2.

Definitions.

(a) Scope. For the purposes of this section, the terms defined have the meaning given them.

(b) Commissioner. "Commissioner" means the commissioner of management and budget.

(c) Eligible employee. "Eligible employee" means an employee eligible to participate in the program under the terms described in subdivision 6.

(d) Eligible employer. "Eligible employer" means an employer eligible to participate in the program under the terms described in subdivision 5.

(e) Eligible individual. "Eligible individual" means a person eligible to participate in the program under the terms described in subdivision 6.

(f) Employee. "Employee" means an employee of an eligible employer. "Employee" includes a sole proprietor, partner of a partnership, member of a limited liability company, or independent contractor.

(g) Employer. "Employer" means a private person, firm, corporation, partnership, limited liability company, association, or other entity actively engaged in business or public services. "Employer" includes both for-profit and nonprofit entities.

(h) Program. "Program" means the Minnesota employees insurance program created by this section.

Subd. 3.

Administration.

After consulting with the chairs of the senate Governmental Operations and Veterans Committee and the house of representatives Governmental Operations and Veterans Affairs Policy Committee, the commissioner may determine when the program provided under this section is available. When the commissioner makes the program available, the commissioner shall, consistent with the provisions of this section, administer the program and determine its coverage options, funding and premium arrangements, contractual arrangements, and all other matters necessary to administer the program. The commissioner's contracting authority for the program, including authority for competitive bidding and negotiations, is governed by section 43A.23.

Subd. 5.

Employer eligibility.

(a) Procedures. All employers are eligible for coverage through the program subject to the terms of this subdivision. The commissioner shall establish procedures for an employer to apply for coverage through the program.

(b) Term. The initial term of an employer's coverage may be for up to two years from the effective date of the employer's application. After that, coverage will be automatically renewed for an additional term unless the employer gives notice of withdrawal from the program according to procedures established by the commissioner or the commissioner gives notice to the employer of the discontinuance of the program. The commissioner may establish conditions under which an employer may withdraw from the program prior to the expiration of a term, including by reason of an increase in health coverage premiums of 50 percent or more from one insurance year to the next. An employer that withdraws from the program may not reapply for coverage for a period of time equal to its initial term of coverage.

(c) Minnesota work force. An employer is not eligible for coverage through the program if five percent or more of its eligible employees work primarily outside Minnesota, except that an employer may apply to the program on behalf of only those employees who work primarily in Minnesota.

(d) Employee participation; aggregation of groups. An employer is not eligible for coverage through the program unless its application includes all eligible employees who work primarily in Minnesota, except employees who waive coverage as permitted by subdivision 6. Private entities that are eligible to file a combined tax return for purposes of state tax laws are considered a single employer, except as otherwise approved by the commissioner.

(e) Private employer. A private employer is not eligible for coverage unless it has two or more eligible employees in the state of Minnesota. If an employer has only two eligible employees and one is the spouse, child, sibling, parent, or grandparent of the other, the employer must be a Minnesota-domiciled employer and have paid Social Security or self-employment tax on behalf of both eligible employees.

(f) Minimum participation. The commissioner must require as a condition of employer eligibility that at least 75 percent of its eligible employees who have not waived coverage participate in the program. The participation level of eligible employees must be determined at the initial offering of coverage and at the renewal date of coverage. For purposes of this section, waiver of coverage includes only waivers due to coverage under another group health benefit plan.

(g) Employer contribution. The commissioner must require as a condition of employer eligibility that the employer contribute at least 50 percent toward the cost of the premium of the employee and may require that the contribution toward the cost of coverage is structured in a way that promotes price competition among the coverage options available through the program.

(h) Enrollment cap. The commissioner may limit employer enrollment in the program if necessary to avoid exceeding the program's reserve capacity.

Subd. 6.

Individual eligibility.

(a) Procedures. The commissioner shall establish procedures for eligible employees and other eligible individuals to apply for coverage through the program.

(b) Employees. An employer shall determine when it applies to the program the criteria its employees must meet to be eligible for coverage under its plan. An employer may subsequently change the criteria annually or at other times with approval of the commissioner. The criteria must provide that new employees become eligible for coverage after a probationary period of at least 30 days, but no more than 90 days.

(c) Other individuals. An employer may elect to cover under its plan:

(1) the spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision 2a, disabled children to the extent required in sections 62A.14 and 62A.141, and dependent grandchildren to the extent required in sections 62A.042 and 62A.302;

(2) a retiree who is eligible to receive a pension or annuity from the employer and a covered retiree's spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision 2a, disabled children to the extent required in sections 62A.14 and 62A.141, and dependent grandchildren to the extent required in sections 62A.042 and 62A.302;

(3) the surviving spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision 2a, disabled children, and dependent grandchildren of a deceased employee or retiree, if the spouse, children, or grandchildren were covered at the time of the death;

(4) a covered employee who becomes disabled, as provided in sections 62A.147 and 62A.148; or

(5) any other categories of individuals for whom group coverage is required by state or federal law.

An employer shall determine when it applies to the program the criteria individuals in these categories must meet to be eligible for coverage. An employer may subsequently change the criteria annually, or at other times with approval of the commissioner. The criteria for dependent children to the limiting age as defined in section 62Q.01, subdivision 2a, disabled children, and dependent grandchildren may be no more inclusive than the criteria under section 43A.18, subdivision 2. This paragraph shall not be interpreted as relieving the program from compliance with any federal and state continuation of coverage requirements.

(d) Waiver and late entrance. An eligible individual may waive coverage at the time the employer joins the program or when coverage first becomes available. The commissioner may establish a preexisting condition exclusion of not more than 18 months for late entrants as defined in section 62L.02, subdivision 19.

(e) Continuation coverage. The program shall provide all continuation coverage required by state and federal law.

Subd. 7.

Coverage.

Coverage is available through the program beginning on July 1, 1993. Until an arrangement is in place to provide coverage through a transfer of risk to one or more carriers regulated under chapter 62A, 62C, or 62D, the commissioner shall solicit bids under section 43A.23, from carriers regulated under chapters 62A, 62C, and 62D, to provide coverage of eligible individuals. The commissioner shall provide coverage through contracts with carriers, unless the commissioner receives no reasonable bids from carriers.

(a) Health coverage. Health coverage is available to all employers in the program. The commissioner shall attempt to establish health coverage options that have strong care management features to control costs and promote quality and shall attempt to make a choice of health coverage options available. Health coverage for a retiree who is eligible for the federal Medicare program must be administered as though the retiree is enrolled in Medicare parts A and B. To the extent feasible as determined by the commissioner and in the best interests of the program, the commissioner shall model coverage after the plan established in section 43A.18, subdivision 2. Health coverage must include at least the benefits required of a carrier regulated under chapter 62A, 62C, or 62D for comparable coverage. Coverage under this paragraph must not be provided as part of the health plans available to state employees.

(b) Optional coverages. In addition to offering health coverage, the commissioner may arrange to offer dental coverage through the program. Employers with health coverage may choose to offer dental coverage according to the terms established by the commissioner.

(c) Open enrollment. The program must meet all underwriting requirements of chapter 62L and must provide periodic open enrollments for eligible individuals for those coverages where a choice exists.

(d) Technical assistance. The commissioner may arrange for technical assistance and referrals for eligible employers in areas such as health promotion and wellness, employee benefits structure, tax planning, and health care analysis services as described in section 62J.2930.

Subd. 8.

Premiums.

(a) Payments. Employers enrolled in the program shall pay premiums according to terms established by the commissioner. If an employer fails to make the required payments, the commissioner may cancel coverage and pursue other civil remedies.

(b) Rating method. The commissioner shall determine the premium rates and rating method for the program. The rating method for eligible small employers must meet or exceed the requirements of chapter 62L. The rating methods must recover in premiums all of the ongoing costs for state administration and for maintenance of a premium stability and claim fluctuation reserve. On June 30, 1999, after paying all necessary and reasonable expenses, the commissioner must apply up to $2,075,000 of any remaining balance in the Minnesota employees' insurance trust fund to repayment of any amounts drawn or expended for this program from the health care access fund.

(c) Taxes and assessments. To the extent that the program operates as a self-insured group, the premiums paid to the program are not subject to the taxes imposed by chapter 297I, but the program is subject to a Minnesota Comprehensive Health Association assessment under section 62E.11.

Subd. 9.

Minnesota employees insurance trust fund.

(a) Contents. The Minnesota employees insurance trust fund in the state treasury consists of deposits received from eligible employers and individuals, contractual settlements or rebates relating to the program, investment income or losses, and direct appropriations.

(b) Appropriation. All money in the fund is appropriated to the commissioner to pay insurance premiums, approved claims, refunds, administrative costs, and other costs necessary to administer the program.

(c) Reserves. For any coverages for which the program does not contract to transfer full financial responsibility, the commissioner shall establish and maintain reserves:

(1) for claims in process, incomplete and unreported claims, premiums received but not yet earned, and all other accrued liabilities; and

(2) to ensure premium stability and the timely payment of claims in the event of adverse claims experience. The reserve for premium stability and claim fluctuations must be established according to the standards of section 62C.09, subdivision 3, except that the reserve may exceed the upper limit under this standard until July 1, 1997.

(d) Investments. The State Board of Investment shall invest the fund's assets according to section 11A.24. Investment income and losses attributable to the fund must be credited to the fund.

Subd. 10.

Program status.

The Minnesota employees insurance program is a state program to provide the advantages of a large pool to small employers for purchasing health coverage, other coverages, and related services from insurance companies, health maintenance organizations, and other organizations. The program is not an insurance company. Coverage under this program shall be considered a certificate of insurance or similar evidence of coverage and is subject to all applicable requirements of chapters 60A, 62A, 62C, 62E, 62H, 62L, and 72A, and is subject to regulation by the commissioner of commerce to the extent applicable.

Subd. 12.

Status of agents.

Notwithstanding sections 60K.49 and 72A.07, the program may use, and pay referral fees, commissions, or other compensation to, agents licensed as insurance producers under chapter 60K or licensed under section 62C.17, regardless of whether the agents are appointed to represent the particular health carriers or community integrated service networks that provide the coverage available through the program. When acting under this subdivision, an agent is not an agent of the health carrier or community integrated service network, with respect to that transaction.

43A.318 PUBLIC EMPLOYEES GROUP LONG-TERM CARE INSURANCE PROGRAM.

Subdivision 1.

Definitions.

(a) Scope. For the purposes of this section, the terms defined have the meanings given them.

(b) Eligible person. "Eligible person" means:

(1) a person who is eligible for insurance and benefits under section 43A.24;

(2) a person who at the time of separation from employment was eligible to purchase coverage at personal expense under section 43A.27, subdivision 3, regardless of whether the person elected to purchase this coverage;

(3) a spouse of a person described in clause (1) or (2), regardless of the enrollment status in the program of the person described in clause (1) or (2); or

(4) a parent of a person described in clause (1), regardless of the enrollment status in the program of the person described in clause (1).

(c) Program. "Program" means the statewide public employees long-term care insurance program created under subdivision 2.

(d) Qualified vendor. "Qualified vendor" means an entity licensed or authorized to underwrite, provide, or administer group long-term care insurance benefits in this state.

Subd. 2.

Program creation; general provisions.

(a) The commissioner may administer a program to make long-term care coverage available to eligible persons. The commissioner may determine the program's funding arrangements, request bids from qualified vendors, and negotiate and enter into contracts with qualified vendors. Contracts are not subject to the requirements of section 16C.16 or 16C.19. Contracts must be for a uniform term of at least one year, but may be made automatically renewable from term to term in the absence of notice of termination by either party. The program may not be self-insured until the commissioner has completed an actuarial study of the program and reported the results of the study to the legislature and self-insurance has been specifically authorized by law.

(b) The program may provide coverage for home, community, and institutional long-term care and any other benefits as determined by the commissioner. Coverage is optional. The enrolled eligible person must pay the full cost of the coverage.

(c) The commissioner shall promote activities that attempt to raise awareness of the need for long-term care insurance among residents of the state and encourage the increased prevalence of long-term care coverage. These activities must include the sharing of knowledge gained in the development of the program.

(d) The commissioner may employ and contract with persons and other entities to perform the duties under this section and may determine their duties and compensation consistent with this chapter.

(e) The benefits provided under this section are not terms and conditions of employment as defined under section 179A.03, subdivision 19, and are not subject to collective bargaining.

(f) The commissioner shall establish underwriting criteria for entry of all eligible persons into the program. Eligible persons who would be immediately eligible for benefits may not enroll.

(g) Eligible persons who meet underwriting criteria may enroll in the program upon hiring and at other times established by the commissioner.

(h) An eligible person enrolled in the program may continue to participate in the program even if an event, such as termination of employment, changes the person's employment status.

(i) Participating public employee pension plans and public employers may provide automatic pension or payroll deduction for payment of long-term care insurance premiums to qualified vendors contracted with under this section.

(j) The premium charged to program enrollees must include an administrative fee to cover all program expenses incurred in addition to the cost of coverage. All fees collected are appropriated to the commissioner for the purpose of administrating the program.

Subd. 4.

Long-term care insurance trust fund.

(a) The long-term care insurance trust fund in the state treasury consists of deposits of the premiums received from persons enrolled in the program. All money in the fund is appropriated to the commissioner to pay premiums, claims, refunds, administrative costs, and other related service costs. The commissioner shall reserve an amount of money sufficient to cover the actuarially estimated costs of claims incurred but unpaid. The trust fund must be used solely for the purpose of the program.

(b) The State Board of Investment shall invest the money in the fund according to section 11A.24. Investment income and losses attributable to the fund must be credited to or deducted from the fund.

Subd. 5.

Private sources.

This section does not prohibit or limit individuals or local governments from purchasing long-term care insurance through other private sources.

211B.06 FALSE POLITICAL AND CAMPAIGN MATERIAL.

Subdivision 1.

Gross misdemeanor.

(a) A person is guilty of a gross misdemeanor who intentionally participates in the preparation, dissemination, or broadcast of paid political advertising or campaign material with respect to the personal or political character or acts of a candidate, or with respect to the effect of a ballot question, that is designed or tends to elect, injure, promote, or defeat a candidate for nomination or election to a public office or to promote or defeat a ballot question, that is false, and that the person knows is false or communicates to others with reckless disregard of whether it is false.

(b) A person is guilty of a misdemeanor who intentionally participates in the drafting of a letter to the editor with respect to the personal or political character or acts of a candidate, or with respect to the effect of a ballot question, that is designed or tends to elect, injure, promote, or defeat any candidate for nomination or election to a public office or to promote or defeat a ballot question, that is false, and that the person knows is false or communicates to others with reckless disregard of whether it is false.

Subd. 2.

Exception.

Subdivision 1 does not apply to any person or organization whose sole act is, in the normal course of their business, the printing, manufacturing, or dissemination of the false information.

211B.08 SOLICITATION OF CONTRIBUTIONS PROHIBITED.

A religious, charitable, or educational organization may not request a candidate or committee to contribute to the organization, to subscribe for the support of a club or organization, to buy tickets to entertainment, or to pay for space in a publication. This section does not apply to:

(1) the solicitation of a business advertisement in periodicals in which the candidate was a regular contributor, before candidacy;

(2) ordinary business advertisements;

(3) regular payments to a religious, charitable, or educational organization, of which the candidate was a member, or to which the candidate was a contributor for more than six months before candidacy; or

(4) ordinary contributions at church services.

383C.07 MEMBERS OF BOARDS AND COMMISSIONS; TERMS OF OFFICE.

Notwithstanding the provisions of any law to the contrary, in St. Louis County every lay member hereafter appointed by the county board to any board or commission heretofore or hereafter created by law, shall be appointed for a term of three years.

383C.74 HISTORICAL WORK.

Subdivision 1.

Appropriation.

The St. Louis County Board may appropriate from the treasury of the county a sum not to exceed $2,500 each year for the promotion of historical work within its borders.

Subd. 2.

Minnesota State Historical Society.

Said sum shall be so appropriated for the use of a historical society organized in said county and devoted to the collection, preservation and publication of historical material, the dissemination of historical information and in general carrying on historical work, said society to be designated by the Minnesota State Historical Society.

Subd. 3.

Purpose of appropriation.

The work of said historical society shall be done in the county making such appropriation and in reference to the history of said county and all facts relevant thereto.

Subd. 4.

Money to remain in county treasury.

The money appropriated as aforesaid shall remain in the treasury of the county and be paid out in payment of expense incurred by said county historical society for the purposes above indicated on verified bills approved by said local society according to its rules, in the same way that county bills are paid. Said appropriation shall be available for expense occurring in any year although not paid until the succeeding year. Any unused portion of any appropriation for any year shall revert to the funds of the county. Said appropriation shall be effective only for the year in which it is made.

471.9998 MERCHANT BAGS.

Subdivision 1.

Merchant option.

All merchants, itinerant vendors, and peddlers doing business in this state shall have the option to provide customers a paper, plastic, or reusable bag for the packaging of any item or good purchased, provided such purchase is of a size and manner commensurate with the use of paper, plastic, or reusable bags.

Subd. 2.

Prohibition; bag ban.

Notwithstanding any other provision of law, no political subdivision shall impose any ban upon the use of paper, plastic, or reusable bags for packaging of any item or good purchased from a merchant, itinerant vendor, or peddler.

Repealed Minnesota Session Laws: S3045-1

Laws 2024, chapter 120, article 3, section 2

Sec. 2.

Minnesota Statutes 2023 Supplement, section 155A.2705, subdivision 3, is amended to read:

Subd. 3.

Training.

Hair technician training must be completed at a Minnesota-licensed cosmetology school. The training must consist of 900 hours of coursework and planned clinical instruction and experience that includes:

(1) the first 300 hours of the hair technology course that includes:

(i) student orientation;

(ii) preclinical instruction in the theory of sciences, including:

(A) muscle and bone structure and function;

(B) properties of the hair new text begin , a study of all hair types and textures, including coil, curl, or wave patterns, hair strand thicknesses, and volumes of hair, new text end and scalp;

(C) disorders and diseases of the hair and scalp;

(D) chemistry as related to hair technology; and

(E) electricity and light related to the practice of hair technology;

(iii) theory and preclinical instruction on client and service safety prior to students offering services;

(iv) introductory service skills that are limited to the observation of an instructor demonstration, student use of mannequins, or student-to-student application of basic services related to hair technology;

(v) Minnesota statutes and rules pertaining to the regulation of hair technology;

(vi) health and safety instruction that includes:

(A) chemical safety;

(B) safety data sheets;

(C) personal protective equipment (PPE);

(D) hazardous substances; and

(E) laws and regulations related to health and public safety; and

(vii) infection control to protect the health and safety of the public and technician that includes:

(A) disinfectants;

(B) disinfectant procedures;

(C) cleaning and disinfection;

(D) single use items;

(E) storage of tools, implements, and linens; and

(F) other implements and equipment used in salons and schools;

(2) 300 hours in hair cutting and styling that includes hair and scalp analysis deleted text begin , deleted text end new text begin ; providing services to individuals who have all hair types and textures, including coil, curl, or wave patterns, hair strand thicknesses, and volumes of hair; new text end cleaning deleted text begin , deleted text end new text begin ; new text end scalp and hair conditioning deleted text begin , deleted text end new text begin ; new text end hair design and shaping deleted text begin , deleted text end new text begin ; new text end drying deleted text begin , deleted text end new text begin ; new text end arranging deleted text begin , deleted text end new text begin ; new text end curling deleted text begin , deleted text end new text begin ; new text end dressing deleted text begin , deleted text end new text begin ; new text end waving deleted text begin , deleted text end new text begin ; new text end and nonchemical straightening; and

(3) 300 hours in chemical hair services that includes hair and scalp analysis deleted text begin , deleted text end new text begin ; providing services to individuals with all hair types and textures, including coil, curl, or wave patterns, hair strand thicknesses, and volumes of hair; new text end dying deleted text begin , deleted text end new text begin ; new text end bleaching deleted text begin , deleted text end new text begin ; new text end reactive chemicals deleted text begin , deleted text end new text begin ; new text end keratin deleted text begin , deleted text end new text begin ; new text end hair coloring deleted text begin , deleted text end new text begin ; new text end permanent straightening deleted text begin , deleted text end new text begin ; new text end permanent waving deleted text begin , deleted text end new text begin ; new text end predisposition and strand tests deleted text begin , deleted text end new text begin ; new text end safety precautions deleted text begin , deleted text end new text begin ; new text end chemical mixing deleted text begin , deleted text end new text begin ; new text end color formulation deleted text begin , deleted text end new text begin ; new text end and the use of dye removers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025. new text end

Repealed Minnesota Rule: S3045-1

1105.7900 SUBSTANTIAL EQUIVALENCY.

D.

Individuals required by Minnesota Statutes, section 326A.14, subdivision 1, paragraph (b), to obtain a verification that their individual qualifications are substantially equivalent to the licensure requirements of Minnesota Statutes, section 326A.03, subdivisions 3, 4, and 6, shall obtain the verification from the NASBA National Qualification Appraisal Service prior to rendering professional services in this state. Documentation supporting this verification must be maintained by the individual for a minimum period of six years and must be submitted to the board upon request.