SF 1

1st Engrossment - 90th Legislature, 2017 1st Special Session (2017 - 2017) Posted on 06/07/2017 11:11am

A bill for an act
relating to the operation of state government; appropriating money for the
legislature, governor's office, state auditor, attorney general, secretary of state,
certain agencies, boards, councils, and retirement funds; changing provisions in
state government operations; changing provisions in military affairs and veterans
affairs, campaign finance, and elections; providing for the sale and regulation of
intoxicating liquor; amending Minnesota Statutes 2016, sections 3.305, subdivision
1; 3.8843, subdivision 7; 3.971, subdivisions 2, 6; 3.972, by adding a subdivision;
3.98, subdivisions 1, 4; 3.987, subdivision 1; 6.481, subdivisions 3, 6; 6.56,
subdivision 2; 6.581, subdivision 4; 10A.01, subdivisions 12, 16; 10A.025,
subdivision 1a; 10A.04, by adding a subdivision; 10A.071, subdivision 1; 10A.09,
subdivisions 5, 6; 10A.15, by adding a subdivision; 10A.20, subdivision 3; 10A.25,
subdivision 2; 10A.27, by adding subdivisions; 10A.31, by adding a subdivision;
10A.323; 15.0145, subdivision 5; 15A.083, subdivisions 6a, 7; 16A.90; 16B.055,
subdivision 1; 16B.2405; 16B.4805, subdivision 2; 16E.0466; 43A.17, subdivision
11; 43A.24, by adding a subdivision; 85.0505, by adding a subdivision; 138.081;
138.665, subdivisions 2, 3; 138.69; 155A.30, subdivision 5; 190.19, subdivisions
2, 2a; 196.05, subdivision 1; 197.236, subdivision 9; 197.791, subdivisions 2, 3,
4, 5, 5a; 270.44; 270.45; 290.0681, subdivisions 1, 2, 7, 9; 340A.22, subdivisions
1, 2; 340A.24, subdivision 3; 340A.28, subdivision 1; 340A.301, by adding a
subdivision; 340A.315, subdivision 7; 340A.504, subdivision 6; 349A.08,
subdivision 2; 349A.10, subdivision 6; 352D.06, subdivision 1; 353.27, subdivision
3c; 353.505; 471.193, subdivision 6; 508.12, subdivision 1; 518A.79, by adding
a subdivision; Laws 1999, chapter 202, section 13, as amended; Laws 2016, chapter
127, section 8; Laws 2017, chapter 21, sections 1, subdivision 2; 3, subdivision 2;
proposing coding for new law in Minnesota Statutes, chapters 3; 6; 10A; 15; 16B;
118A; 134A; 197; 206; 270; 340A; repealing Minnesota Statutes 2016, sections
6.581, subdivision 1; 204B.48; 349A.08, subdivision 3; Laws 2001, chapter 193,
section 10, as amended; Laws 2013, chapter 137, article 4, section 6; Minnesota
Rules, parts 4501.0300, subpart 3; 4501.0500, subpart 2; 4503.0200, subpart 6;
4503.0300, subpart 4; 4503.0400, subpart 1; 4503.0500, subparts 5, 8; 4503.0700,
subparts 2, 3; 4503.1300, subpart 5; 4503.1400, subparts 8, 9; 4503.1450, subparts
1, 3; 4503.1600; 4503.1700; 4503.1800; 4505.0100, subpart 3; 4505.0900, subparts
2, 3, 4, 5, 6, 7; 4511.0500, subpart 2; 4512.0100, subparts 2, 4, 5; 4525.0210,
subpart 1.

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

ARTICLE 1

STATE GOVERNMENT APPROPRIATIONS

Section 1. new text begin 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 "2018" and "2019" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
is fiscal years 2018 and 2019.
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 2018 new text end		new text begin 2019 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 82,193,000 new text end

new text begin $ new text end

new text begin 82,169,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 82,065,000 new text end	new text begin 82,041,000 new text end
new text begin Health Care Access new text end	new text begin 128,000 new text end	new text begin 128,000 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 Senate new text end

new text begin 32,299,000 new text end

new text begin 32,105,000 new text end

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

new text begin 32,383,000 new text end

new text begin 32,383,000 new text end

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

new text begin 17,511,000 new text end

new text begin 17,681,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 17,383,000 new text end	new text begin 17,553,000 new text end
new text begin Health Care Access new text end	new text begin 128,000 new text end	new text begin 128,000 new text end

new text begin Appropriations provided by this subdivision
may be used for designated staff to support
the following offices and commissions: Office
of the Legislative Auditor; Office of the
Revisor of Statutes; Legislative Reference
Library; Geographic Information Services;
Legislative Budget Office; Legislative-Citizen
Commission on Minnesota Resources;
Legislative Commission on Pensions and
Retirement; Legislative Water Commission;
Mississippi River Parkway Commission;
Legislative Energy Commission; and the
Lessard-Sams Outdoor Heritage Council. The
operation of all other joint offices and
commissions must be supported by the central
administrative staff of the Legislative
Coordinating Commission. This appropriation
may additionally be used for central
administrative staff to support the work of the
Economic Status of Women Advisory
Committee.
new text end

new text begin From its funds, $10,000 each year is for
purposes of the legislators' forum, through
which Minnesota legislators meet with
counterparts from South Dakota, North
Dakota, and Manitoba to discuss issues of
mutual concern.
new text end

new text begin The base for the Legislative Budget Office is
$818,000 for fiscal year 2020 and each year
thereafter.
new text end

new text begin Legislative Auditor. $6,744,000 the first year
and $6,564,000 the second year are for the
Office of the Legislative Auditor.
new text end

new text begin Of these amounts, $130,000 the first year is
for the transit financial activity reviews
required by Minnesota Statutes, section 3.972,
subdivision 4.
new text end

new text begin No later than January 15, 2018, the legislative
auditor must complete an assessment of the
adequacy of the county audits performed by
the state auditor in calendar year 2016. The
standards for conducting the assessment must
be identical to those described in the report of
the state auditor dated March 2017, titled
"Assessing the Adequacy of 2015 County
Audits Performed by Private CPA Firms."
new text end

new text begin Revisor of Statutes. $6,430,000 the first year
and $6,093,000 the second year are for the
Office of the Revisor of Statutes.
new text end

new text begin Of these amounts, $250,000 in the first year
is for upgrades and repairs to the information
technology data center located in the State
Office Building.
new text end

new text begin new text begin Legislative Reference Library. new text end $1,622,000
the first year and $1,445,000 the second year
are for the Legislative Reference Library.
new text end

new text begin Of these amounts, $177,000 the first year is
for the digital preservation of audio recordings
documenting committee hearings and floor
sessions of the legislature.
new text end

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

new text begin $ new text end

new text begin 3,616,000 new text end

new text begin $ new text end

new text begin 3,616,000 new text end

new text begin (a) This appropriation is to fund the Office of
the Governor and Lieutenant Governor.
new text end

new text begin (b) Up to $19,000 the first year and up to
$19,000 the second year are 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

Sec. 4. new text begin STATE AUDITOR 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 9,748,000 new text end

new text begin $ new text end

new text begin 10,037,000 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 Audit Practice new text end

new text begin 7,449,000 new text end

new text begin 7,694,000 new text end

new text begin Subd. 3. new text end new text begin Legal and Special Investigations new text end

new text begin 344,000 new text end

new text begin 344,000 new text end

new text begin Subd. 4. new text end new text begin Government Information new text end

new text begin 702,000 new text end

new text begin 746,000 new text end

new text begin Subd. 5. new text end new text begin Pension Oversight new text end

new text begin 485,000 new text end

new text begin 485,000 new text end

new text begin Subd. 6. new text end new text begin Operations Management new text end

new text begin 488,000 new text end

new text begin 488,000 new text end

new text begin Subd. 7. new text end new text begin Constitutional Office new text end

new text begin 280,000 new text end

new text begin 280,000 new text end

Sec. 5. new text begin ATTORNEY GENERAL 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 24,925,000 new text end

new text begin $ new text end

new text begin 24,925,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 22,125,000 new text end	new text begin 22,125,000 new text end
new text begin State Government Special Revenue new text end	new text begin 2,405,000 new text end	new text begin 2,405,000 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 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 Legal Services new text end

new text begin 3,948,000 new text end

new text begin 3,948,000 new text end

new text begin Subd. 3. new text end new text begin Regulatory Law and Professions new text end

new text begin 5,182,000 new text end

new text begin 5,182,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 2,403,000 new text end	new text begin 2,403,000 new text end
new text begin State Government Special Revenue new text end	new text begin 2,384,000 new text end	new text begin 2,384,000 new text end
new text begin Environmental new text end	new text begin 250,000 new text end	new text begin 250,000 new text end
new text begin Remediation new text end	new text begin 145,000 new text end	new text begin 145,000 new text end

new text begin Subd. 4. new text end new text begin State Government Services new text end

new text begin 6,654,000 new text end

new text begin 6,654,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 6,633,000 new text end	new text begin 6,633,000 new text end
new text begin State Government Special Revenue new text end	new text begin 21,000 new text end	new text begin 21,000 new text end

new text begin Subd. 5. new text end new text begin Civil Law Section new text end

new text begin 3,254,000 new text end

new text begin 3,254,000 new text end

new text begin Subd. 6. new text end new text begin Civil Litigation new text end

new text begin 1,617,000 new text end

new text begin 1,617,000 new text end

new text begin Subd. 7. new text end new text begin Administrative Operations new text end

new text begin 4,270,000 new text end

new text begin 4,270,000 new text end

Sec. 6. new text begin SECRETARY OF STATE 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 13,631,000 new text end

new text begin $ new text end

new text begin 6,742,000 new text end

new text begin The base for fiscal year 2020 is $6,631,000
and the base for fiscal year 2021 is
$6,631,000.
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 Administration new text end

new text begin 642,000 new text end

new text begin 655,000 new text end

new text begin Subd. 3. new text end new text begin Safe at Home new text end

new text begin 659,000 new text end

new text begin 676,000 new text end

new text begin Subd. 4. new text end new text begin Business Services new text end

new text begin 1,750,000 new text end

new text begin 1,502,000 new text end

new text begin Subd. 5. new text end new text begin Elections new text end

new text begin 10,580,000 new text end

new text begin 3,909,000 new text end

new text begin Of these amounts, $7,000,000 the first year is
for election equipment grants under Minnesota
Statutes, section 206.95. This appropriation is
available until June 30, 2020.
new text end

Sec. 7. new text begin CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD new text end

new text begin $ new text end

new text begin 1,036,000 new text end

new text begin $ new text end

new text begin 1,044,000 new text end

Sec. 8. 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. 9. new text begin ADMINISTRATIVE HEARINGS 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 8,184,000 new text end

new text begin $ new text end

new text begin 8,186,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 397,000 new text end	new text begin 399,000 new text end
new text begin Workers' Compensation new text end	new text begin 7,787,000 new text end	new text begin 7,787,000 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 Campaign Violations new text end

new text begin 115,000 new text end

new text begin 115,000 new text end

new text begin These amounts are for the cost of considering
complaints filed under Minnesota Statutes,
section 211B.32. These amounts may be used
in either year of the biennium.
new text end

new text begin Subd. 3. new text end new text begin Data Practices new text end

new text begin 20,000 new text end

new text begin 22,000 new text end

new text begin These amounts are for the cost of considering
data practices complaints filed under
Minnesota Statutes, section 13.085. These
amounts may be used in either year of the
biennium.
new text end

new text begin Subd. 4. new text end new text begin Municipal Boundary Adjustments new text end

new text begin 262,000 new text end

new text begin 262,000 new text end

Sec. 10. new text begin OFFICE OF MN.IT SERVICES 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 2,642,000 new text end

new text begin $ new text end

new text begin 2,662,000 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 The state chief information officer must
prioritize use of appropriations provided by
this section to enhance cybersecurity across
state government.
new text end

new text begin Subd. 2. new text end new text begin State Chief Information Officer new text end

new text begin 1,336,000 new text end

new text begin 1,356,000 new text end

new text begin The commissioner of management and budget
is authorized to provide cash flow assistance
of up to $110,000,000 from the special
revenue fund or other statutory general funds
as defined in Minnesota Statutes, section
16A.671, subdivision 3, paragraph (a), to the
Office of MN.IT Services for the purpose of
managing revenue and expenditure
differences. These funds shall be repaid with
interest by the end of the fiscal year 2019
closing period.
new text end

new text begin During the biennium ending June 30, 2019,
the Office of MN.IT 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

new text begin Subd. 3. new text end new text begin Geospatial Information Office new text end

new text begin 871,000 new text end

new text begin 871,000 new text end

new text begin Subd. 4. new text end new text begin Enterprise IT Security new text end

new text begin 435,000 new text end

new text begin 435,000 new text end

Sec. 11. 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 24,395,000 new text end

new text begin $ new text end

new text begin 23,817,000 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 9,628,000 new text end

new text begin 9,400,000 new text end

new text begin This appropriation includes funds for
information technology project services and
support subject to the provisions of Minnesota
Statutes, section 16E.0466. Any ongoing
information technology costs must be
incorporated into the service level agreement
and must be paid to the Office of MN.IT
Services by the commissioner of
administration under the rates and mechanism
specified in that agreement.
new text end

new text begin Council on Developmental Disabilities.
$74,000 the first year and $74,000 the second
year are for the Council on Developmental
Disabilities.
new text end

new text begin Olmstead Plan. new text end new text begin $148,000 each year is for the
Olmstead plan.
new text end

new text begin Continuous Improvement Program.
$417,000 the first year and $418,000 the
second year are for the continuous
improvement program.
new text end

new text begin Materials Management. new text end new text begin $2,408,000 the first
year and $2,409,000 the second year are for
materials management.
new text end

new text begin Plant Management. new text end new text begin $438,000 each year is
for plant management.
new text end

new text begin Real Estate and Construction Services. new text end new text begin
$2,763,000 the first year and $2,811,000 the
second year are for real estate and construction
services.
new text end

new text begin Enterprise Real Property. new text end new text begin $711,000 the first
year and $717,000 the second year are for
enterprise real property.
new text end

new text begin Small Agency Resource Team (SmART). new text end new text begin
$466,000 the first year and $467,000 the
second year are for the small agency resource
team.
new text end

new text begin State Agency Accommodation
Reimbursement. $200,000 the first year and
$200,000 the second year are credited to the
accommodation account established in
Minnesota Statutes, section 16B.4805.
new text end

new text begin new text begin Community Services. new text end $2,003,000 the first
year and $1,718,000 the second year are for
community services.
new text end

new text begin (a) $215,000 the first year and $215,000 the
second year are for the state archaeologist.
new text end

new text begin (b) $525,000 the first year and $525,000 the
second year are for information policy
analysis.
new text end

new text begin (c) $737,000 the first year and $737,000 the
second year are for the state demographer. Of
this amount, $190,000 each year is for the
2020 census.
new text end

new text begin (d) $130,000 the first year and $130,000 the
second year are for the Office of Grants
Management.
new text end

new text begin (e) $300,000 the first year is for the State
Historic Preservation Office. The base is
$200,000 in fiscal year 2020 and each year
thereafter.
new text end

new text begin (f) $96,000 the first year and $111,000 the
second year are for operating adjustments and
may be transferred to activities under
paragraphs (a) to (d).
new text end

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

new text begin 2,212,000 new text end

new text begin 2,245,000 new text end

new text begin new text begin Executive Leadership/Partnerships. new text end
$702,000 the first year and $719,000 the
second year are for executive
leadership/partnerships.
new text end

new text begin new text begin School Trust Lands Director. new text end $185,000 each
year is for school trust lands director.
new text end

new text begin new text begin Financial Management and Reporting. new text end
$871,000 the first year and $884,000 the
second year are for financial management and
reporting.
new text end

new text begin new text begin Human Resources. new text end $454,000 the first year
and $457,000 the second year are for human
resources.
new text end

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

new text begin 12,555,000 new text end

new text begin 12,172,000 new text end

new text begin In-Lieu of Rent. new text end new text begin $9,374,000 the first year and
$9,391,000 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 Public Television. new text end new text begin (a) $1,550,000 the first
year and $1,550,000 the second year are for
matching grants for public television.
new text end

new text begin (b) $250,000 the first year and $250,000 the
second year are for public television
equipment grants under Minnesota Statutes,
section 129D.13.
new text end

new text begin (c) 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 Public Radio. (a) $392,000 the first year and
$392,000 the second year are for community
service grants to public educational radio
stations. This appropriation may be used to
disseminate emergency information in foreign
languages.
new text end

new text begin (b) $117,000 the first year and $117,000 the
second year are for equipment grants to public
educational radio stations. This appropriation
may be used for the repair, rental, and
purchase of equipment including equipment
under $500.
new text end

new text begin (c) $310,000 the first year and $310,000 the
second year are 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) $400,000 the first year is for a grant to
Minnesota Public Radio, Inc. for upgrades to
Minnesota's Emergency Alert and AMBER
Alert Systems.
new text end

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

new text begin (f) 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, 2017.
new text end

new text begin (g) 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

new text begin (h) $162,000 each year is for transfer to the
Minnesota Film and TV Board. The
appropriation in each year is available only
upon receipt by the board of $1 in matching
contributions of money or in-kind
contributions from nonstate sources for every
$3 provided by this appropriation, except that
each year up to $50,000 is available on July
1 even if the required matching contribution
has not been received by that date.
new text end

Sec. 12. new text begin CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD new text end

new text begin $ new text end

new text begin 347,000 new text end

new text begin $ new text end

new text begin 350,000 new text end

Sec. 13. new text begin MINNESOTA MANAGEMENT AND BUDGET new text end

new text begin $ new text end

new text begin 25,497,000 new text end

new text begin $ new text end

new text begin 26,076,000 new text end

new text begin Subdivision 1. new text end new text begin Appropriations 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 This appropriation includes funds for
information technology project services and
support subject to the provisions of Minnesota
Statutes, section 16E.0466. Any ongoing
information technology costs must be
incorporated into the service level agreement
and must be paid to the Office of MN.IT
Services by the commissioner of management
and budget under the rates and mechanism
specified in that agreement.
new text end

new text begin Subd. 2. new text end new text begin Accounting Services new text end

new text begin 5,060,000 new text end

new text begin 5,060,000 new text end

new text begin Subd. 3. new text end new text begin Budget Services new text end

new text begin 3,443,000 new text end

new text begin 3,443,000 new text end

new text begin Subd. 4. new text end new text begin Economic Analysis new text end

new text begin 548,000 new text end

new text begin 548,000 new text end

new text begin Subd. 5. new text end new text begin Debt Management new text end

new text begin 475,000 new text end

new text begin 475,000 new text end

new text begin Subd. 6. new text end new text begin Enterprise Communications and Planning new text end

new text begin 1,074,000 new text end

new text begin 1,074,000 new text end

new text begin Subd. 7. new text end new text begin Enterprise Human Resources new text end

new text begin 3,469,000 new text end

new text begin 3,469,000 new text end

new text begin Subd. 8. new text end new text begin Labor Relations new text end

new text begin 1,123,000 new text end

new text begin 1,123,000 new text end

new text begin Subd. 9. new text end new text begin Agency Administration new text end

new text begin 10,305,000 new text end

new text begin 10,884,000 new text end

new text begin (a) $632,000 the first year and $1,204,000 the
second year are for operating adjustments and
may be transferred to any other activity under
this section.
new text end

new text begin (b) $1,165,000 the first year and $1,172,000
the second year are for system security and
risk management. The base is $922,000 in
fiscal year 2020 and each year thereafter.
new text end

Sec. 14. 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 153,506,000 new text end

new text begin $ new text end

new text begin 157,401,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 149,270,000 new text end	new text begin 153,165,000 new text end
new text begin Health Care Access new text end	new text begin 1,749,000 new text end	new text begin 1,749,000 new text end
new text begin Highway User Tax Distribution new text end	new text begin 2,184,000 new text end	new text begin 2,184,000 new text end
new text begin Environmental new text end	new text begin 303,000 new text end	new text begin 303,000 new text end

new text begin This appropriation includes funds for
information technology project services and
support subject to the provisions of Minnesota
Statutes, section 16E.0466. Any ongoing
information technology costs must be
incorporated into the service level agreement
and must be paid to the Office of MN.IT
Services by the commissioner of revenue
under the rates and mechanism specified in
that agreement. This section is not effective
until the day following enactment of First
Special Session 2017, House File No. 1.
new text end

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

new text begin 124,890,000 new text end

new text begin 128,785,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 120,654,000 new text end	new text begin 124,549,000 new text end
new text begin Health Care Access new text end	new text begin 1,749,000 new text end	new text begin 1,749,000 new text end
new text begin Highway User Tax Distribution new text end	new text begin 2,184,000 new text end	new text begin 2,184,000 new text end
new text begin Environmental new text end	new text begin 303,000 new text end	new text begin 303,000 new text end

new text begin (a) Operations Support new text end
new text begin General new text end				new text begin 10,134,000 new text end		new text begin 10,134,000 new text end
new text begin Health Care Access new text end				new text begin 126,000 new text end		new text begin 126,000 new text end

new text begin (b) Appeals, Legal Services, and Tax Research new text end
new text begin General new text end				new text begin 7,251,000 new text end		new text begin 7,251,000 new text end
new text begin Health Care Access new text end				new text begin 113,000 new text end		new text begin 113,000 new text end

new text begin (c) Payment and Return Processing new text end
new text begin General new text end				new text begin 13,177,000 new text end		new text begin 13,177,000 new text end
new text begin Health Care Access new text end				new text begin 51,000 new text end		new text begin 51,000 new text end
new text begin Highway User Tax Distribution new text end				new text begin 343,000 new text end		new text begin 343,000 new text end

new text begin (d) Administration of State Taxes new text end
new text begin General new text end				new text begin 57,408,000 new text end		new text begin 57,248,000 new text end
new text begin Health Care Access new text end				new text begin 1,407,000 new text end		new text begin 1,407,000 new text end
new text begin Highway User Tax Distribution new text end				new text begin 1,621,000 new text end		new text begin 1,621,000 new text end
new text begin Environmental new text end				new text begin 303,000 new text end		new text begin 303,000 new text end

new text begin (1) $160,000 from the general fund in the first
year is for administration of a first-time home
buyer savings account program. This
appropriation is canceled to the general fund
if income tax provisions related to first-time
home buyer savings accounts are not enacted
by law at the 2017 regular or special
legislative session.
new text end

new text begin (2) $400,000 in fiscal year 2018 and $400,000
in fiscal year 2019 from the general fund are
for grants to one or more nonprofit
organizations, qualifying under section
501(c)(3) of the Internal Revenue Code of
1986, to coordinate, facilitate, encourage, and
aid in the provision of taxpayer assistance
services. The unencumbered balance in the
first year does not cancel but is available for
the second year.
new text end

new text begin For purposes of this appropriation, "taxpayer
assistance services" means accounting and tax
preparation services provided by volunteers
to low-income, elderly, and disadvantaged
Minnesota residents to help them file federal
and state income tax returns, Minnesota
property tax refund claims, and to provide
personal representation before the Department
of Revenue and Internal Revenue Service.
new text end

new text begin For the fiscal year 2020-2021 biennial budget,
the commissioner must develop a budget
structure that reflects actual spending to the
budget activity level. This detail must be
available in the Budget Planning and Analysis
System.
new text end

new text begin (e) Technology Development, Implementation, and Support new text end
new text begin General new text end				new text begin 22,784,000 new text end		new text begin 22,784,000 new text end
new text begin Health Care Access new text end				new text begin 52,000 new text end		new text begin 52,000 new text end
new text begin Highway User Tax Distribution new text end				new text begin 220,000 new text end		new text begin 220,000 new text end

new text begin (f) Property Tax Administration and State Aid new text end
new text begin General new text end				new text begin 4,173,000 new text end		new text begin 4,173,000 new text end

new text begin (g) Effective and Efficient Tax Service new text end

new text begin 5,727,000 new text end

new text begin 9,782,000 new text end

new text begin These appropriations are for increased
operation costs. The commissioner may
transfer money in these appropriations to other
activities in this subdivision.
new text end

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

new text begin 28,616,000 new text end

new text begin 28,616,000 new text end

Sec. 15. new text begin HUMAN RIGHTS new text end

new text begin $ new text end

new text begin 4,393,000 new text end

new text begin $ new text end

new text begin 4,580,000 new text end

Sec. 16. new text begin GAMBLING CONTROL new text end

new text begin $ new text end

new text begin 3,422,000 new text end

new text begin $ new text end

new text begin 3,457,000 new text end

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

Sec. 17. new text begin RACING COMMISSION new text end

new text begin $ new text end

new text begin 845,000 new text end

new text begin $ new text end

new text begin 908,000 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. 18. 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 $32,500,000
in fiscal year 2018 and $33,000,000 in fiscal
year 2019.
new text end

Sec. 19. new text begin AMATEUR SPORTS COMMISSION new text end

new text begin $ new text end

new text begin 303,000 new text end

new text begin $ new text end

new text begin 305,000 new text end

Sec. 20. new text begin COUNCIL ON MINNESOTANS OF AFRICAN HERITAGE new text end

new text begin $ new text end

new text begin 403,000 new text end

new text begin $ new text end

new text begin 406,000 new text end

Sec. 21. new text begin COUNCIL ON LATINO AFFAIRS new text end

new text begin $ new text end

new text begin 477,000 new text end

new text begin $ new text end

new text begin 494,000 new text end

Sec. 22. new text begin COUNCIL ON ASIAN-PACIFIC MINNESOTANS new text end

new text begin $ new text end

new text begin 457,000 new text end

new text begin $ new text end

new text begin 464,000 new text end

Sec. 23. new text begin INDIAN AFFAIRS COUNCIL new text end

new text begin $ new text end

new text begin 580,000 new text end

new text begin $ new text end

new text begin 584,000 new text end

Sec. 24. 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 23,393,000 new text end

new text begin $ new text end

new text begin 23,893,000 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 23,072,000 new text end

new text begin 23,572,000 new text end

new text begin $750,000 the first year and $750,000 the
second year are for digital preservation and
access, including planning and implementation
of a program to preserve and make available
resources related to Minnesota history. These
are onetime appropriations.
new text end

new text begin Subd. 3. new text end new text begin Fiscal Agent 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) 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 (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) 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 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. 25. 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 7,534,000 new text end

new text begin $ new text end

new text begin 7,539,000 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 595,000 new text end

new text begin 600,000 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. 26. new text begin MINNESOTA HUMANITIES CENTER new text end

new text begin $ new text end

new text begin 950,000 new text end

new text begin $ new text end

new text begin 950,000 new text end

new text begin (a) $325,000 each year is for the Healthy
Eating, Here at Home program under
Minnesota Statutes, section 138.912. No more
than three percent of the appropriation may
be used for the nonprofit administration of this
program.
new text end

new text begin (b) $250,000 each year is for grants to the
Veterans Defense Project. Grants must be used
to support, through education and outreach,
military veterans who are involved with the
criminal justice system. These are onetime
appropriations.
new text end

Sec. 27. new text begin BOARD OF ACCOUNTANCY new text end

new text begin $ new text end

new text begin 645,000 new text end

new text begin $ new text end

new text begin 649,000 new text end

Sec. 28. 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 799,000 new text end

new text begin $ new text end

new text begin 804,000 new text end

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

new text begin $ new text end

new text begin 2,775,000 new text end

new text begin $ new text end

new text begin 2,785,000 new text end

new text begin The executive director must report quarterly
to the chairs and ranking minority members
of the committees in the house of
representatives and senate with jurisdiction
over state government finance on the number
of inspections conducted by license type in
the past quarter, number and percent of total
salons and schools inspected within the last
year, total number of licensees by type, and
the number of inspectors employed by the
board. The first report must be submitted by
July 15, 2017.
new text end

Sec. 30. new text begin BOARD OF BARBER EXAMINERS new text end

new text begin $ new text end

new text begin 341,000 new text end

new text begin $ new text end

new text begin 343,000 new text end

Sec. 31. new text begin GENERAL CONTINGENT ACCOUNTS new text end

new text begin $ new text end

new text begin 1,000,000 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 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 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 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 (b) 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 (c) If a contingent account appropriation is
made in one fiscal year, it should be
considered a biennial appropriation.
new text end

Sec. 32. 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. 33. 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 14,893,000 new text end

new text begin $ new text end

new text begin 15,071,000 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 8,893,000 new text end

new text begin 9,071,000 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 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 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.
$6,000,000 each fiscal year is included in the
base for fiscal years 2020 and 2021. 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. 34. new text begin PUBLIC EMPLOYEES RETIREMENT ASSOCIATION new text end

new text begin $ new text end

new text begin 16,000,000 new text end

new text begin $ new text end

new text begin 16,000,000 new text end

new text begin General employees retirement plan of the
Public Employees Retirement Association
relating to the merged former MERF division.
new text end

new text begin 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, 2017, and
$16,000,000 on September 15, 2018.
new text end

new text begin These amounts are estimated to be needed
under Minnesota Statutes, section 353.505.
new text end

Sec. 35. 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 the
first year and $27,331,000 the second year are
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 the first year and $2,500,000 the
second year are for special direct state
matching aid authorized under Minnesota
Statutes, section 354.435.
new text end

Sec. 36. new text begin ST. PAUL TEACHERS RETIREMENT FUND new text end

new text begin $ new text end

new text begin 9,827,000 new text end

new text begin $ new text end

new text begin 9,827,000 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. 37. new text begin MILITARY AFFAIRS 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 24,836,000 new text end

new text begin $ new text end

new text begin 22,920,000 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 Maintenance of Training Facilities new text end

new text begin 9,677,000 new text end

new text begin 9,694,000 new text end

new text begin Of the funds transferred to maintenance of
training facilities in Laws 2015, chapter 77,
article 1, section 36, subdivision 4, $2,000,000
in fiscal year 2017 may be transferred to the
enlistment incentives appropriation to address
a projected fiscal year 2017 deficit in the
enlistment incentives program.
new text end

new text begin Subd. 3. new text end new text begin General Support new text end

new text begin 3,090,000 new text end

new text begin 3,114,000 new text end

new text begin Subd. 4. new text end new text begin Enlistment Incentives new text end

new text begin 12,069,000 new text end

new text begin 10,112,000 new text end

new text begin The appropriations in this subdivision are
available until June 30, 2021, except that any
unspent amounts allocated to a program
otherwise supported by this appropriation are
canceled to the general fund upon receipt of
federal funds in the same amount to support
administration of that program.
new text end

new text begin If appropriations for either year of the
biennium are insufficient, the appropriation
from the other year is available.
new text end

Sec. 38. new text begin VETERANS AFFAIRS 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 75,010,000 new text end

new text begin $ new text end

new text begin 75,497,000 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 Veterans Programs and Services new text end

new text begin 17,375,000 new text end

new text begin 17,440,000 new text end

new text begin Veterans Service Organizations. new text end new text begin $353,000
each year is for grants to the following
congressionally chartered veterans service
organizations as designated by the
commissioner: Disabled American Veterans,
Military Order of the Purple Heart, the
American Legion, Veterans of Foreign Wars,
Vietnam Veterans of America, AMVETS, and
Paralyzed Veterans of America. This funding
must be allocated in direct proportion to the
funding currently being provided by the
commissioner to these organizations.
new text end

new text begin Minnesota Assistance Council for Veterans.
$750,000 each year is for a grant to the
Minnesota Assistance Council for Veterans
to provide assistance throughout Minnesota
to veterans and their families who are
homeless or in danger of homelessness,
including assistance with the following:
new text end

new text begin (1) utilities;
new text end

new text begin (2) employment; and
new text end

new text begin (3) legal issues.
new text end

new text begin The assistance authorized under this paragraph
must be made only to veterans who have
resided in Minnesota for 30 days prior to
application for assistance and according to
other guidelines established by the
commissioner. In order to avoid duplication
of services, the commissioner must ensure that
this assistance is coordinated with all other
available programs for veterans.
new text end

new text begin new text begin Honor Guards. new text end $200,000 each year is for
compensation for honor guards at the funerals
of veterans under Minnesota Statutes, section
197.231.
new text end

new text begin new text begin Minnesota GI Bill. new text end $200,000 each year is for
the costs of administering the Minnesota GI
Bill postsecondary educational benefits,
on-the-job training, and apprenticeship
program under Minnesota Statutes, section
197.791.
new text end

new text begin new text begin Gold Star Program. new text end $100,000 each year is
for administering the Gold Star Program for
surviving family members of deceased
veterans.
new text end

new text begin new text begin County Veterans Service Office. new text end $1,100,000
each year is for funding the County Veterans
Service Office grant program under Minnesota
Statutes, section 197.608.
new text end

new text begin new text begin Veterans Journey Home. new text end $350,000 each year
is for grants to the veterans Journey Home
program. Grants must support the development
of new or rehabilitated affordable housing
dedicated for low-to-moderate income
veterans and their families. These are onetime
appropriations.
new text end

new text begin Subd. 3. new text end new text begin Veterans Health Care new text end

new text begin 57,635,000 new text end

new text begin 58,057,000 new text end

new text begin The general fund appropriations made to the
department may be transferred to a veterans
homes special revenue account in the special
revenue fund in the same manner as other
receipts are deposited according to Minnesota
Statutes, section 198.34, and are appropriated
to the department for the operation of veterans
homes facilities and programs.
new text end

new text begin No later than January 15, 2018, the
commissioner must submit a report to the
legislative committees with jurisdiction over
veterans affairs and state government finance
on reserve amounts maintained in the veterans
homes special revenue account. The report
must detail current and historical amounts
maintained as a reserve, and uses of those
amounts. The report must also include data on
the utilization of existing veterans homes,
including current and historical bed capacity
and usage, staffing levels and staff vacancy
rates, and staff-to-resident ratios.
new text end

new text begin new text begin Maximize Federal Reimbursements. new text end The
department will seek opportunities to
maximize federal reimbursements of
Medicare-eligible expenses and will provide
annual reports to the commissioner of
management and budget on the federal
Medicare reimbursements received.
Contingent upon future federal Medicare
receipts, reductions to the homes' general fund
appropriation may be made.
new text end

Sec. 39. new text begin APPROPRIATION CANCELLATIONS.
new text end

new text begin All unspent funds estimated to be $7,166,000, as provided in Minnesota Statutes, section
240A.085, under Laws 2016, chapter 189, article 13, section 56, are canceled to the general
fund on June 30, 2017.
new text end

Sec. 40. new text begin APPROPRIATION TRANSFERS.
new text end

new text begin A commissioner of an executive branch agency receiving appropriations within this
article may transfer appropriations for staff positions, salaries, and technology within the
agency to meet its statutory obligations. The commissioner shall inform the chairs and
ranking minority members of the committees in the house of representatives and senate
with jurisdiction over state government and veterans finance quarterly about transfers made
under this section.
new text end

Sec. 41. new text begin DATA COMPLAINTS; DEFICIENCY.
new text end

new text begin $34,000 in fiscal year 2017 is appropriated from the general fund to the Office of
Administrative Hearings for the cost of considering complaints filed under Minnesota
Statutes, section 211B.32, and for the cost of considering data practices complaints filed
under Minnesota Statutes, section 13.085.
new text end

Sec. 42. new text begin SAVINGS FROM INSURANCE OPT OUT; APPROPRIATION
REDUCTION FOR EXECUTIVE AGENCIES.
new text end

new text begin The commissioner of management and budget must reduce general fund appropriations
to executive agencies, including constitutional offices, for agency operations for the biennium
ending June 30, 2019, by $4,012,000 due to savings from permitting employees to opt out
of insurance coverage under the state employee group insurance coverage.
new text end

new text begin If savings obtained through permitting employees to opt out of insurance coverage under
the state employee group insurance coverage yield savings in nongeneral funds other than
those established in the state constitution or protected by federal law, the commissioner of
management and budget may transfer the amount of savings to the general fund. The amount
transferred to the general fund from other funds reduces the required general fund reduction
in this section. Reductions made in 2019 must be reflected as reductions in agency base
budgets for fiscal years 2020 and 2021. The commissioner of management and budget must
report to the chairs and ranking minority members of the committees in the senate Finance
Committee and the house of representatives Ways and Means Committee regarding the
amount of reductions in spending by each agency under this section.
new text end

Sec. 43. new text begin BASE BUDGET REPORT.
new text end

new text begin No later than October 15, 2017, the commissioners of management and budget, revenue,
and veterans affairs must each submit a report to the chairs and ranking minority members
of the legislative committees with jurisdiction over state government finance that detail the
agency's base budget, by fiscal year. At a minimum, the report must include:
new text end

new text begin (1) a description of each appropriation rider enacted for the agency, and the year the
rider was first enacted in a substantially similar form;
new text end

new text begin (2) a description of the agency's use of appropriated funds that are not directed by a
rider, including an itemization of programs that appeared in a rider in a prior biennium and
continue to receive funding despite no longer appearing in a rider; and
new text end

new text begin (3) an itemization of any appropriations provided to the agency under a provision of
statute or the state constitution.
new text end

ARTICLE 2

STATE GOVERNMENT OPERATIONS

Section 1.

Minnesota Statutes 2016, section 3.305, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) "Legislative commission" means a joint commission,
committee, or other entity in the legislative branch composed exclusively of members of
the senate and the house of representatives.

(b) "Joint offices" means the Revisor of Statutes, Legislative Reference Library, the
Office of Legislative Auditor, new text begin the Legislative Budget Office, new text end and any other joint legislative
service office.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 8, 2019.
new text end

Sec. 2.

Minnesota Statutes 2016, section 3.8843, subdivision 7, is amended to read:

Subd. 7.

Expiration.

This section expires June 30, deleted text begin 2017 deleted text end new text begin 2019 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. 3.

new text begin [3.8853] LEGISLATIVE BUDGET OFFICE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; duties. new text end

new text begin The Legislative Budget Office is established
under control of the Legislative Coordinating Commission to provide the house of
representatives and senate with nonpartisan, accurate, and timely information on the fiscal
impact of proposed legislation, without regard to political factors.
new text end

new text begin Subd. 2. new text end

new text begin Staff. new text end

new text begin The Legislative Coordinating Commission must appoint a director who
may hire staff necessary to do the work of the office. The director serves a term of six years
and may not be removed during a term except for cause.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 8, 2019.
new text end

Sec. 4.

Minnesota Statutes 2016, section 3.971, subdivision 2, is amended to read:

Subd. 2.

Staff; compensation.

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

new text begin (b) new text end 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 a confidential
secretary to serve at pleasure. The salaries and benefits of the legislative auditor, deputy
auditors and confidential secretaries 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.

new text begin (c) The legislative auditor must appoint a fiscal oversight officer with duties that include
performing the review under section 3.972, subdivision 4.
new text end

new text begin (d) new text end The deputy auditors and the confidential secretaries serve in the unclassified civil
service, but new text begin the fiscal oversight officer and new text end all other employees of the legislative auditor are
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.

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

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 2016, section 3.971, subdivision 6, is amended to read:

Subd. 6.

Financial audits.

The legislative auditor shall audit the financial statements
of the state of Minnesota required by section 16A.50 and, as resources permit, Minnesota
State Colleges and Universities, the University of Minnesota, state agencies, departments,
boards, commissions, offices, courts, and other organizations subject to audit by the
legislative auditor, including, but not limited to, the State Agricultural Society, Agricultural
Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical Society,
ClearWay Minnesota, Minnesota Sports Facilities Authority, new text begin Metropolitan Council, new text end
Metropolitan Airports Commission, and Metropolitan Mosquito Control District. Financial
audits must be conducted according to generally accepted government auditing standards.
The legislative auditor shall see that all provisions of law respecting the appropriate and
economic use of public funds and other public resources are complied with and may, as
part of a financial audit or separately, investigate allegations of noncompliance.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 3.972, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Certain transit financial activity reporting. new text end

new text begin (a) The legislative auditor must
perform a transit financial activity review of financial information for the Metropolitan
Council's Transportation Division and the joint powers board under section 297A.992.
Within 14 days of the end of each fiscal quarter, the legislative auditor must submit the
review to the Legislative Audit Commission and the chairs and ranking minority members
of the legislative committees with jurisdiction over transportation policy and finance, finance,
and ways and means.
new text end

new text begin (b) At a minimum, each transit financial activity review must include:
new text end

new text begin (1) a summary of monthly financial statements, including balance sheets and operating
statements, that shows income, expenditures, and fund balance;
new text end

new text begin (2) a list of any obligations and agreements entered into related to transit purposes,
whether for capital or operating, including but not limited to bonds, notes, grants, and future
funding commitments;
new text end

new text begin (3) the amount of funds in clause (2) that has been committed;
new text end

new text begin (4) independent analysis by the fiscal oversight officer of the fiscal viability of revenues
and fund balance compared to expenditures, taking into account:
new text end

new text begin (i) all expenditure commitments;
new text end

new text begin (ii) cash flow;
new text end

new text begin (iii) sufficiency of estimated funds; and
new text end

new text begin (iv) financial solvency of anticipated transit projects; and
new text end

new text begin (5) a notification concerning whether the requirements under paragraph (c) have been
met.
new text end

new text begin (c) The Metropolitan Council and the joint powers board under section 297A.992 must
produce monthly financial statements as necessary for the review under paragraph (b),
clause (1), and provide timely information as requested by the legislative auditor.
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. 7.

Minnesota Statutes 2016, section 3.98, subdivision 1, is amended to read:

Subdivision 1.

Preparation new text begin ; duties new text end .

new text begin (a) new text end The head or chief administrative officer of each
department or agency of the state government, including the Supreme Court, shall new text begin cooperate
with the Legislative Budget Office and the Legislative Budget Office must new text end prepare a fiscal
note at the request of the chair of the standing committee to which a bill has been referred,
or the chair of the house of representatives Ways and Means Committee, or the chair of the
senate Committee on Finance.

new text begin (b) Upon request of the Legislative Budget Office, the head or chief administrative
officer of each department or agency of state government, including the Supreme Court,
must promptly supply all information necessary for the Legislative Budget Office to prepare
an accurate and timely fiscal note.
new text end

new text begin (c) The Legislative Budget Office may adopt standards and guidelines governing timing
of responses to requests for information and governing access to data, consistent with laws
governing access to data. Agencies must comply with these standards and guidelines and
the Legislative Budget Office must publish them on the office's Web site.
new text end

new text begin (d) new text end For purposes of this subdivision, "Supreme Court" includes all agencies, committees,
and commissions supervised or appointed by the state Supreme Court or the state court
administrator.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 8, 2019.
new text end

Sec. 8.

Minnesota Statutes 2016, section 3.98, subdivision 4, is amended to read:

Subd. 4.

Uniform procedure.

The deleted text begin commissioner of management and budget deleted text end new text begin Legislative
Budget Office new text end shall prescribe a uniform procedure to govern the departments and agencies
of the state in complying with the requirements of this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 8, 2019.
new text end

Sec. 9.

Minnesota Statutes 2016, section 3.987, subdivision 1, is amended to read:

Subdivision 1.

Local impact notes.

The deleted text begin commissioner of management and budget deleted text end new text begin
Legislative Budget Office new text end shall coordinate the development of a local impact note for any
proposed legislation deleted text begin introduced after June 30, 1997, deleted text end upon request of the chair or the ranking
minority member of either legislative Tax, Finance, or Ways and Means Committee. Upon
receipt of a request to prepare a local impact note, the deleted text begin commissioner deleted text end new text begin office new text end must notify the
authors of the proposed legislation that the request has been made. The local impact note
must be made available to the public upon request. If the action is among the exceptions
listed in section 3.988, a local impact note need not be requested nor prepared. The
deleted text begin commissioner deleted text end new text begin office new text end shall make a reasonable and timely estimate of the local fiscal impact
on each type of political subdivision that would result from the proposed legislation. The
deleted text begin commissioner of management and budget deleted text end new text begin office new text end may require any political subdivision or
the commissioner of an administrative agency of the state to supply in a timely manner any
information determined to be necessary to determine local fiscal impact. The political
subdivision, its representative association, or commissioner shall convey the requested
information to the deleted text begin commissioner of management and budget deleted text end new text begin office new text end with a signed statement
to the effect that the information is accurate and complete to the best of its ability. The
political subdivision, its representative association, or commissioner, when requested, shall
update its determination of local fiscal impact based on actual cost or revenue figures,
improved estimates, or both. Upon completion of the note, the deleted text begin commissioner deleted text end new text begin office new text end must
provide a copy to the authors of the proposed legislation and to the chair and ranking minority
member of each committee to which the proposed legislation is referred.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 8, 2019.
new text end

Sec. 10.

Minnesota Statutes 2016, section 6.481, subdivision 3, is amended to read:

Subd. 3.

CPA firm audit.

A county audit performed by a CPA firm must meet the
standards and be in deleted text begin the deleted text end new text begin a new text end form deleted text begin required by the state auditor deleted text end new text begin meeting recognized industry
auditing standards new text end . The state auditor may require additional information from the CPA firm
if the state auditor determines that is in the public interest, but the state auditor must accept
the audit unless the state auditor determines deleted text begin it deleted text end new text begin the audit or its form new text end does not meet recognized
industry auditing standards deleted text begin or is not in the form required by the state auditor deleted text end . The state
auditor may make additional examinations as the auditor determines to be in the public
interest.

Sec. 11.

Minnesota Statutes 2016, section 6.481, subdivision 6, is amended to read:

Subd. 6.

Payments to state auditor.

A county audited by the state auditor must pay the
state auditor for the costs and expenses of the audit. If the state auditor makes additional
examinations of a county whose audit is performed by a CPA firm, the county must pay the
auditor for the cost of these examinations. Payments must be deposited in the deleted text begin state auditor
enterprise deleted text end new text begin general new text end fund.

Sec. 12.

Minnesota Statutes 2016, section 6.56, subdivision 2, is amended to read:

Subd. 2.

Billings by state auditor.

Upon the examination of the books, records, accounts,
and affairs of any political subdivision, as provided by law, such political subdivision shall
be liable to the state for the total cost and expenses of such examination, including the
salaries paid to the examiners while actually engaged in making such examination. The
state auditor may bill such political subdivision periodically for service rendered and the
officials responsible for approving and paying claims are authorized to pay said bill promptly.
Said payments shall be without prejudice to any defense against said claims that may exist
or be asserted. The deleted text begin state auditor enterprise deleted text end new text begin general new text end fund shall be credited with all collections
made for any such examinations, including interest payments made pursuant to subdivision
3.

Sec. 13.

Minnesota Statutes 2016, section 6.581, subdivision 4, is amended to read:

Subd. 4.

Reports to legislature.

At least 30 days before implementing increased charges
for examinations, the state auditor must report the proposed increases to the chairs and
ranking minority members of the committees in the house of representatives and the senate
with jurisdiction over the budget of the state auditor. By January 15 of each odd-numbered
year, the state auditor must report to the chairs and ranking minority members of the
legislative committees and divisions with primary jurisdiction over the budget of the state
auditor a summary of deleted text begin the state auditor enterprise fund deleted text end anticipated revenues, and expenditures
new text begin related to examinations new text end for the biennium ending June 30 of that year. The report must also
include for the biennium the number of full-time equivalents deleted text begin paid by the fund deleted text end new text begin , by division,
employed by the Office of the State Auditor new text end , any audit rate changes stated as a percentage,
the number of audit reports issued, and the number of counties audited.

Sec. 14.

new text begin [6.92] LITIGATION EXPENSES; LEGISLATIVE REPORT.
new text end

new text begin The state auditor must report to the chairs and ranking minority members of the
committees in the house of representatives and the senate with jurisdiction over the Office
of the State Auditor by July 1, 2017, and January 1, 2018, and each January 1 thereafter,
on the state auditor's expenses in preparing or asserting a civil claim or appeal, or in defending
against a civil claim or appeal, related to the proper exercise of the auditor's constitutionally
authorized core functions. The report must list each lawsuit the state auditor has brought or
is defending, the grounds for each suit, the litigation expenses incurred since the previous
report under this section, and the projected expenses to complete the suit.
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.

Minnesota Statutes 2016, section 15.0145, subdivision 5, is amended to read:

Subd. 5.

Executive director; staff.

(a) The Legislative Coordinating Commission must
appoint an executive director for each council. The executive director must be experienced
in administrative activities and familiar with the challenges and needs of the ethnic council's
larger community. The executive director serves in the unclassified service at the pleasure
of the Legislative Coordinating Commission.

(b) The Legislative Coordinating Commission must establish a process for recruiting
and selecting applicants for the executive director positions. This process must include
consultation and collaboration with the applicable council.

(c) The executive director and applicable council members must work together in fulfilling
council duties. The executive director must consult with the commissioner of administration
to ensure appropriate financial, purchasing, human resources, and other services for operation
of the council.

(d) Once appointed, each council is responsible for supervising the work of its director.
The council chair must report to the chair of the Legislative Coordinating Commission
regarding the performance of the executive director, including any recommendations
regarding disciplinary actions. The executive director must appoint and supervise the work
of other staff necessary to carry out the duties of the council. The executive director must
consult with the council chair prior to taking the following disciplinary actions with council
staff: written reprimand, suspension, demotion, or discharge. The executive director and
other council staff are executive branch employees.

(e) The executive director must submit the council's biennial budget request to the
commissioner of management and budget as provided under chapter 16A.

new text begin (f) The Legislative Coordinating Commission may delegate its responsibilities under
this section to a subcommittee or subgroup of the commission or the chair of the council.
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. 16.

new text begin [15.0395] INTERAGENCY AGREEMENTS AND INTRA-AGENCY
TRANSFERS.
new text end

new text begin (a) By October 15, 2018, and annually thereafter, the head of each agency must provide
reports to the chairs and ranking minority members of the legislative committees with
jurisdiction over the department or agency's budget on:
new text end

new text begin (1) interagency agreements or service-level agreements and any renewals or extensions
of existing interagency or service-level agreements with another agency if the cumulative
value of those agreements is more than $100,000 in the previous fiscal year; and
new text end

new text begin (2) transfers of appropriations between accounts within or between agencies, if the
cumulative value of the transfers is more than $100,000 in the previous fiscal year.
new text end

new text begin The report must include the statutory citation authorizing the agreement, transfer or dollar
amount, purpose, and effective date of the agreement, the duration of the agreement, and a
copy of the agreement.
new text end

new text begin (b) As used in this section, "agency" includes the departments of the state listed in section
15.01, a multimember state agency in the executive branch described in section 15.012,
paragraph (a), the Office of MN.IT Services, and the Office of Higher Education.
new text end

Sec. 17.

Minnesota Statutes 2016, section 15A.083, subdivision 6a, is amended to read:

Subd. 6a.

Administrative law judge; salaries.

The salary of the chief administrative
law judge is 98.52 percent of the salary of a new text begin chief new text end district court judge. The salaries of the
assistant chief administrative law judge and administrative law judge supervisors are 93.60
percent of the salary of a new text begin chief new text end district court judge. The salary of an administrative law judge
employed by the Office of Administrative Hearings is deleted text begin 88.67 deleted text end new text begin 98.52 new text end percent of the salary of
a district court judge as set under section 15A.082, subdivision 3.

Sec. 18.

Minnesota Statutes 2016, section 15A.083, subdivision 7, is amended to read:

Subd. 7.

Workers' Compensation Court of Appeals and compensation judges.

Salaries of judges of the Workers' Compensation Court of Appeals are 98.52 percent of the
salary for district court judges. The salary of the chief judge of the Workers' Compensation
Court of Appeals is 98.52 percent of the salary for a chief district court judge. Salaries of
compensation judges are deleted text begin 88.67 deleted text end new text begin 98.52 new text end percent of the salary of district court judges. deleted text begin The chief
workers' compensation judge at the Department of Labor and Industry may be paid an annual
salary that is up to five percent greater than the salary of workers' compensation settlement
judges at the Department of Labor and Industry.
deleted text end

Sec. 19.

Minnesota Statutes 2016, section 16A.90, is amended to read:

16A.90 EMPLOYEE GAINSHARING SYSTEM.

new text begin Subdivision 1. new text end

new text begin Commissioner must establish program. new text end

new text begin (a) new text end The commissioner shall
establish a program to provide onetime bonus compensation to state employees for efforts
made to reduce the costs of operating state government or for ways of providing better or
more efficient state services. The commissioner may authorize an executive branch appointing
authority to make a onetime award to an employee or group of employees whose suggestion
or involvement in a project is determined by the commissioner to have resulted in documented
cost-savings to the state. Before authorizing awards under this section, the commissioner
shall establish guidelines for the program including but not limited to:

(1) the maximum award is ten percent of the documented savings in the first fiscal year
in which the savings are realized up to $50,000;

(2) the award must be paid from the appropriation to which the savings accrued; and

(3) employees whose primary job responsibility is to identify cost savings or ways of
providing better or more efficient state services are generally not eligible for bonus
compensation under this section except in extraordinary circumstances as defined by the
commissioner.

new text begin (b) The program required by this section must be in addition to any existing monetary
or nonmonetary performance-based recognition programs for state employees, including
achievement awards, continuous improvement awards, and general employee recognitions.
new text end

new text begin Subd. 2. new text end

new text begin Biannual legislative report. new text end

new text begin No later than August 1, 2017, and biannually
thereafter, the commissioner must report to the chairs and ranking minority members of the
house of representatives and senate committees with jurisdiction over Minnesota Management
and Budget on the status of the program required by this section. The report must detail:
new text end

new text begin (1) the specific program guidelines established by the commissioner as required by
subdivision 1, if the guidelines have not been described in a previous report;
new text end

new text begin (2) any proposed modifications to the established guidelines under consideration by the
commissioner, including the reason for the proposed modifications;
new text end

new text begin (3) the methods used by the commissioner to promote the program to state employees,
if the methods have not been described in a previous report;
new text end

new text begin (4) a summary of the results of the program that includes the following, categorized by
agency:
new text end

new text begin (i) the number of state employees whose suggestions or involvement in a project were
considered for possible bonus compensation, and a description of each suggestion or project
that was considered;
new text end

new text begin (ii) the total amount of bonus compensation actually awarded, itemized by each suggestion
or project that resulted in an award and the amount awarded for that suggestion or project;
and
new text end

new text begin (iii) the total amount of documented cost-savings that accrued to the agency as a result
of each suggestion or project for which bonus compensation was granted; and
new text end

new text begin (5) any recommendations for legislation that, in the judgment of the commissioner,
would improve the effectiveness of the bonus compensation program established by this
section or which would otherwise increase opportunities for state employees to actively
participate in the development and implementation of strategies for reducing the costs of
operating state government or for providing better or more efficient state services.
new text end

Sec. 20.

Minnesota Statutes 2016, 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 Assistive
Technology Act of 1998, as provided by Public Law 108-364, as amended. The Minnesota
Assistive Technology Advisory Council is established to fulfill the responsibilities required
by the Assistive Technology Act, as provided by Public Law 108-364, as amended. Because
the existence of this council is required by federal law, this council does not expire.

(b) new text begin Except as provided in paragraph (c), new text end the governor shall appoint the membership of
the council as required by the Assistive Technology Act of 1998, as provided by Public
Law 108-364, as amended. 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 Assistive Technology Act of 1998, as provided by Public Law 108-364, as
amended. The members of the council shall select their chair at the first meeting following
their appointment.

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

new text begin (1) State Services for the Blind who has assistive technology expertise;
new text end

new text begin (2) vocational rehabilitation services who has assistive technology expertise;
new text end

new text begin (3) the Workforce Development Council; and
new text end

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

Sec. 21.

Minnesota Statutes 2016, section 16B.2405, is amended to read:

16B.2405 CAPITOL BUILDING POWERS AND DUTIES.

new text begin Subdivision 1. new text end

new text begin Duties. new text end

The commissioner, upon receipt of funding for these purposes,
shall:

(1) maintain and operate the Capitol building and grounds according to section 16B.24
and other applicable law;

(2) designate a project manager to oversee and manage predesign, design, and construction
contracts and funding for all modifications to the Capitol building;

(3) manage design and construction projects and funding for the Capitol building
according to section 16B.31 and other applicable law;

(4) lease space in the Capitol building, as provided in section 16B.24, to state agencies,
constitutional officers, and the court administrator on behalf of the judicial branch and
allocate space in the Capitol building to the legislative branch as determined by the
commission;

(5) provide information about the Capitol building to the commission, legislative bodies,
and others as needed regarding maintenance, operation, leasing, condition assessments,
design, and construction projects; and

(6) assist the State Capitol Preservation Commission with performance of its duties as
needed.

new text begin Subd. 2. new text end

new text begin Capitol event fees; appropriation. new text end

new text begin The commissioner may collect charges or
fees from users holding events in the Capitol building. Money collected by the commissioner
under this subdivision shall be deposited in a Capitol events dedicated account in the special
revenue fund. Money in the dedicated account is appropriated to the commissioner of
administration to recover direct costs incurred from holding events in the Capitol building.
The commissioner shall report annually by August 1 on the events held in the Capitol
building, the amounts collected for those events, and the costs for operating events, to the
chairs and ranking minority members of the committees in the house of representatives and
the senate with jurisdiction over finance and policy relating to the commissioner of
administration.
new text end

Sec. 22.

Minnesota Statutes 2016, section 16B.4805, subdivision 2, is amended to read:

Subd. 2.

Reimbursement for making reasonable accommodation.

The commissioner
of administration shall reimburse state agencies for new text begin up to 50 percent of the cost of new text end expenses
incurred in making reasonable accommodations eligible for reimbursement for agency
employees and applicants for employment to the extent that funds are available in the
accommodation account established under subdivision 3 for this purpose.

Sec. 23.

new text begin [16B.991] TERMINATION OF GRANT.
new text end

new text begin Each grant agreement subject to sections 16B.97 and 16B.98 must provide that the
agreement will immediately be terminated if the recipient is convicted of a criminal offense
relating to a state grant agreement.
new text end

Sec. 24.

Minnesota Statutes 2016, section 16E.0466, is amended to read:

16E.0466 STATE AGENCY TECHNOLOGY PROJECTS.

new text begin Subdivision 1. new text end

new text begin Consultation required. new text end

(a) Every state agency with an information or
telecommunications project must consult with the Office of MN.IT Services to determine
the information technology cost of the project. Upon agreement between the commissioner
of a particular agency and the chief information officer, the agency must transfer the
information technology cost portion of the project to the Office of MN.IT Services. Service
level agreements must document all project-related transfers under this section. Those
agencies specified in section 16E.016, paragraph (d), are exempt from the requirements of
this section.

(b) Notwithstanding section 16A.28, subdivision 3, any unexpended operating balance
appropriated to a state agency may be transferred to the information and telecommunications
technology systems and services account for the information technology cost of a specific
project, subject to the review of the Legislative Advisory Commission, under section 16E.21,
subdivision 3.

new text begin Subd. 2. new text end

new text begin Legislative report. new text end

new text begin No later than October 1, 2017, and annually thereafter, the
state chief information officer must submit a comprehensive project portfolio report to the
chairs and ranking minority members of the house of representatives and senate committees
with jurisdiction over state government finance on projects requiring consultation under
subdivision 1. The report must itemize:
new text end

new text begin (1) each project presented to the office for consultation in the time since the last report;
new text end

new text begin (2) the information technology cost associated with the project, including the information
technology cost as a percentage of the project's complete budget;
new text end

new text begin (3) the status of the information technology components of the project's development;
new text end

new text begin (4) the date the information technology components of the project are expected to be
completed; and
new text end

new text begin (5) the projected costs for ongoing support and maintenance of the information technology
components after the project is complete.
new text end

Sec. 25.

Minnesota Statutes 2016, section 43A.17, subdivision 11, is amended to read:

Subd. 11.

Severance pay for certain employees.

(a) For purposes of this subdivision,
"highly compensated employee" means an employee of the state whose estimated annual
compensation is greater than 60 percent of the governor's annual salary, and who is not
covered by a collective bargaining agreement negotiated under chapter 179A new text begin or a
compensation plan authorized under section 43A.18, subdivision 3a new text end .

(b) Severance pay for a highly compensated employee includes benefits or compensation
with a quantifiable monetary value, that are provided for an employee upon termination of
employment and are not part of the employee's annual wages and benefits and are not
specifically excluded by this subdivision. Severance pay does not include payments for
accumulated vacation, accumulated sick leave, and accumulated sick leave liquidated to
cover the cost of group term insurance. Severance pay for a highly compensated employee
does not include payments of periodic contributions by an employer toward premiums for
group insurance policies. The severance pay for a highly compensated employee must be
excluded from retirement deductions and from any calculations of retirement benefits.
Severance pay for a highly compensated employee must be paid in a manner mutually
agreeable to the employee and the employee's appointing authority over a period not to
exceed five years from retirement or termination of employment. If a retired or terminated
employee dies before all or a portion of the severance pay has been disbursed, the balance
due must be paid to a named beneficiary or, lacking one, to the deceased's estate. Except
as provided in paragraph (c), severance pay provided for a highly compensated employee
leaving employment may not exceed deleted text begin an amount equivalent to six months of pay deleted text end new text begin the lesser
of:
new text end

new text begin (1) six months pay; or
new text end

new text begin (2) the highly compensated employee's regular rate of pay multiplied by 35 percent of
the highly compensated employee's accumulated but unused sick leave hours new text end .

(c) Severance pay for a highly compensated employee may exceed deleted text begin an amount equivalent
to six months of pay deleted text end new text begin the limit prescribed in paragraph (b) new text end if the severance pay is part of an
early retirement incentive offer approved by the state and the same early retirement incentive
offer is also made available to all other employees of the appointing authority who meet
generally defined criteria relative to age or length of service.

new text begin (d) An appointing authority may make severance payments to a highly compensated
employee, up to the limits prescribed in this subdivision, only if doing so is authorized by
a compensation plan under section 43A.18 that governs the employee, provided that the
following highly compensated employees are not eligible for severance pay:
new text end

new text begin (1) a commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, including the state chief information
officer; and
new text end

new text begin (2) any unclassified employee who is also a public official, as defined in section 10A.01,
subdivision 35.
new text end

new text begin (e) Severance pay shall not be paid to a highly compensated employee who has been
employed by the appointing authority for less than six months or who voluntarily terminates
employment.
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. 26.

Minnesota Statutes 2016, section 43A.24, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Opt out. new text end

new text begin (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.
new text end

new text begin (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.
new text end

new 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.
new text end

Sec. 27.

new text begin [118A.09] ADDITIONAL LONG-TERM EQUITY INVESTMENT
AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Definition; qualifying government. new text end

new text begin "Qualifying government" means:
new text end

new text begin (1) a county or statutory or home rule charter city with a population of more than 100,000;
new text end

new text begin (2) a county or statutory or home rule charter city which had its most recently issued
general obligation bonds rated in the highest category by a national bond rating agency; or
new text end

new text begin (3) a self-insurance pool listed in section 471.982, subdivision 3.
new text end

new text begin A county or statutory or home rule charter city with a population of 100,000 or less that is
a qualifying government, but is subsequently rated less than the highest category by a
national bond rating agency on a general obligation bond issue, may not invest additional
funds under this section but may continue to manage funds previously invested under
subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Additional investment authority. new text end

new text begin Qualifying governments may invest the
amount described in subdivision 3:
new text end

new text begin (1) in index mutual funds based in the United States and indexed to a broad market
United States equity index; or
new text end

new text begin (2) with the Minnesota State Board of Investment subject to such terms and minimum
amounts as may be adopted by the board. Index mutual fund investments must be made
directly with the main sales office of the fund.
new text end

new text begin Subd. 3. new text end

new text begin Funds. new text end

new text begin (a) Qualifying governments may only invest under subdivision 2
according to the limitations in this subdivision. A qualifying government under subdivision
1, clause (1) or (2), may only invest its funds that are held for long-term capital plans
authorized by the city council or county board, or long-term obligations of the qualifying
government. Long-term obligations of the qualifying government include long-term capital
plan reserves, funds held to offset long-term environmental exposure, other postemployment
benefit liabilities, compensated absences, and other long-term obligations established by
applicable accounting standards.
new text end

new text begin (b) Qualifying governments under subdivision 1, clause (1) or (2), may invest up to 15
percent of the sum of:
new text end

new text begin (1) unassigned cash;
new text end

new text begin (2) cash equivalents;
new text end

new text begin (3) deposits; and
new text end

new text begin (4) investments.
new text end

new text begin This calculation must be based on the qualifying government's most recent audited statement
of net position, which must be compliant and audited pursuant to governmental accounting
and auditing standards. Once the amount invested reaches 15 percent of the sum of
unassigned cash, cash equivalents, deposits, and investments, no further funds may be
invested under this section; however, a qualifying government may continue to manage the
funds previously invested under this section even if the total amount subsequently exceeds
15 percent of the sum of unassigned cash, cash equivalents, deposits, and investments.
new text end

new text begin (c) A qualified government under subdivision 1, clause (3), may invest up to the lesser
of:
new text end

new text begin (1) 15 percent of the sum of its cash, cash equivalents, deposits, and investments; or
new text end

new text begin (2) 25 percent of its net assets as reported on the pool's most recent audited statement
of net position, which must be compliant and audited pursuant to governmental accounting
and auditing standards.
new text end

new text begin Subd. 4. new text end

new text begin Approval. new text end

new text begin Before investing pursuant to this section, the governing body of the
qualifying government must adopt a resolution that includes the following statements:
new text end

new text begin (1) the governing body understands that investments under subdivision 2 have a risk of
loss;
new text end

new text begin (2) the governing body understands the type of funds that are being invested and the
specific investment itself; and
new text end

new text begin (3) the governing body certifies that all funds designated for investment through the
State Board of Investment meet the requirements of this section and the policies and
procedures established by the State Board of Investment.
new text end

new text begin Subd. 5. new text end

new text begin Public Employees Retirement Association to act as account administrator.
new text end

new text begin A qualifying government exercising authority under this section to invest amounts with the
State Board of Investment shall establish an account with the Public Employees Retirement
Association (PERA), which shall act as the account administrator.
new text end

new text begin Subd. 6. new text end

new text begin Purpose of account. new text end

new text begin The account established under subdivision 5 may only
be used for the purposes provided under subdivision 3. PERA may rely on representations
made by the qualifying government in exercising its duties as account administrator and
has no duty to further verify qualifications, use, or intended use of the funds that are invested
or withdrawn.
new text end

new text begin Subd. 7. new text end

new text begin Account maintenance. new text end

new text begin (a) A qualifying government may establish an account
to be held under the supervision of PERA for the purposes of investing funds with the State
Board of Investment under subdivision 2. PERA shall establish a separate account for each
qualifying government. PERA may charge participating qualifying governments a fee for
reasonable administrative costs. The amount of any fee charged by PERA is annually
appropriated to the association from the account. PERA may establish other reasonable
terms and conditions for creation and maintenance of these accounts.
new text end

new text begin (b) PERA must report to the qualifying government on the investment returns of invested
funds and on all investment fees or costs incurred by the account.
new text end

new text begin Subd. 8. new text end

new text begin Investment. new text end

new text begin (a) The assets of an account shall be invested and held as required
by this subdivision.
new text end

new text begin (b) PERA must certify all money in the accounts for which it is account administrator
to the State Board of Investment for investment under section 11A.14, subject to the policies
and procedures established by the State Board of Investment. Investment earnings must be
credited to the account of the individual qualifying government.
new text end

new text begin (c) For accounts invested by the State Board of Investment, the investment restrictions
shall be the same as those generally applicable to the State Board of Investment.
new text end

new text begin (d) A qualifying government may provide investment direction to PERA, subject to the
policies and procedures established by the State Board of Investment.
new text end

new text begin Subd. 9. new text end

new text begin Withdrawal of funds and termination of account. new text end

new text begin (a) A government may
withdraw some or all of its money or terminate the account.
new text end

new text begin (b) A government requesting withdrawal of money from an account created under this
section must do so at a time and in the manner required by the executive director of PERA,
subject to the policies and procedures established by the State Board of Investment.
new text end

Sec. 28.

new text begin [134A.17] TRANSFERS TO COUNTY.
new text end

new text begin If the Sherburne County law library, through its trustees, has a fiscal reserve that is
projected to sustain its operations for a period of over five years, the Sherburne County law
library may transfer up to half of the money in its fiscal reserve, but not to exceed $200,000,
to Sherburne County to defray costs of constructing a new building to house the law library
and courts.
new text end

Sec. 29.

Minnesota Statutes 2016, section 138.081, is amended to read:

138.081 FEDERAL FUNDS, ACTS.

Subdivision 1.

deleted text begin Executive Council deleted text end new text begin Department of Administration new text end as agency to accept
federal funds.

The deleted text begin Executive Council of the Minnesota Historical Society deleted text end new text begin Department of
Administration new text end is hereby designated the state agency with power to accept any and all money
provided for or made available to this state by the United States of America or any department
or agency thereof for surveys, restoration, construction, equipping, or other purposes relating
to the state historic sites program in accordance with the provisions of federal law and any
rules or regulations promulgated thereunder and are further authorized to do any and all
things required of this state by such federal law and the rules and regulations promulgated
thereunder in order to obtain such federal money.

Subd. 2.

deleted text begin Director's deleted text end new text begin Commissioner's new text end responsibilities.

The deleted text begin director of the Minnesota
Historical Society, as state historic preservation officer, deleted text end new text begin commissioner new text end shall be responsible
for the preparation, implementation and administration of the State Historic Preservation
Plan and shall administer the State Historic Preservation Program authorized by the National
Historic Preservation Act (United States Code, title 16, section 470 et seq. as amended).
The deleted text begin director of the Minnesota Historical Society deleted text end new text begin commissioner new text end shall review and approve
in writing all grants-in-aid for architectural, archaeological and historic preservation made
by state agencies and funded by the state or a combination of state and federal funds in
accordance with the State Historic Preservation Program.

Subd. 3.

Administration of federal act.

The deleted text begin Minnesota Historical Society deleted text end new text begin Department
of Administration new text end is designated as the state agency to administer the provisions of the federal
act providing for the preservation of historical and archaeological data, United States Code,
title 16, sections 469 to 469C, insofar as the provisions of the act provide for implementation
by the state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018.
new text end

Sec. 30.

Minnesota Statutes 2016, section 138.665, subdivision 2, is amended to read:

Subd. 2.

Mediation.

The state, state departments, agencies, and political subdivisions,
including the Board of Regents of the University of Minnesota, have a responsibility to
protect the physical features and historic character of properties designated in sections
138.662 and 138.664 or listed on the National Register of Historic Places created by Public
Law 89-665. Before carrying out any undertaking that will affect designated or listed
properties, or funding or licensing an undertaking by other parties, the state department or
agency shall consult with the deleted text begin Minnesota Historical Society deleted text end new text begin State Historic Preservation Office new text end
pursuant to the society's established procedures to determine appropriate treatments and to
seek ways to avoid and mitigate any adverse effects on designated or listed properties. If
the state department or agency and the deleted text begin Minnesota Historical Society deleted text end new text begin State Historic
Preservation Office new text end agree in writing on a suitable course of action, the project may proceed.
If the parties cannot agree, any one of the parties may request that the governor appoint and
convene a mediation task force consisting of five members, two appointed by the governor,
the chair of the State Review Board of the State Historic Preservation Office, the
commissioner of administration or the commissioner's designee, and one member who is
not an employee of the Minnesota Historical Society appointed by the director of the society.
The two appointees of the governor and the one of the director of the society shall be qualified
by training or experience in one or more of the following disciplines: (1) history; (2)
archaeology; and (3) architectural history. The mediation task force is not subject to the
conditions of section 15.059. This subdivision does not apply to section 138.662, subdivision
24, and section 138.664, subdivisions 8 and 111.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018.
new text end

Sec. 31.

Minnesota Statutes 2016, section 138.665, subdivision 3, is amended to read:

Subd. 3.

Notice to deleted text begin Minnesota Historical Society deleted text end new text begin State Historic Preservation Office new text end
of land acquisition.

If the state or a governmental subdivision acquires any of the property
in section 138.664, it is the duty of the officer in charge of the acquisition to notify in writing,
as promptly as possible, the deleted text begin Minnesota Historical Society deleted text end new text begin State Historic Preservation Office new text end
of the acquisition.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018.
new text end

Sec. 32.

Minnesota Statutes 2016, section 138.69, is amended to read:

138.69 PUBLIC AREAS OF THE CAPITOL.

The Minnesota State Historical Society is designated the research agency and is
responsible for the interpretation of the public areas for visitors to the Capitol. This involves
conducting or approving public programs and tours in the Capitol and State Office Building,
including exhibits held in the Capitol, providing informational services, acting as deleted text begin advisor deleted text end new text begin
adviser new text end on preservation, recommending appropriate custodial policies, and maintaining and
repairing all works of art. new text begin Notwithstanding section 138.668, the society may not charge a
fee for general tours at the Capitol but may charge fees for special programs other than
general tours.
new text end

Sec. 33.

Minnesota Statutes 2016, section 155A.30, subdivision 5, is amended to read:

Subd. 5.

Conditions precedent to issuance.

A license must not be issued unless the
board first determines that the applicant has met the requirements in clauses (1) to deleted text begin (8) deleted text end new text begin (9) new text end :

(1) the applicant must have a sound financial condition with sufficient resources available
to meet the school's financial obligations; to refund all tuition and other charges, within a
reasonable period of time, in the event of dissolution of the school or in the event of any
justifiable claims for refund against the school; to provide adequate service to its students
and prospective students; and to maintain proper use and support of the school;

(2) the applicant must have satisfactory training facilities with sufficient tools and
equipment and the necessary number of work stations to adequately train the students
currently enrolled, and those proposed to be enrolled;

(3) the applicant must employ a sufficient number of qualified instructors trained by
experience and education to give the training contemplated;

(4) the premises and conditions under which the students work and study must be sanitary,
healthful, and safe according to modern standards;

(5) each occupational course or program of instruction or study must be of such quality
and content as to provide education and training that will adequately prepare enrolled
students for testing, licensing, and entry level positions deleted text begin as a cosmetologist, esthetician, or
nail technician deleted text end ;

(6) the school must have coverage by professional liability insurance of at least $25,000
per incident and an accumulation of $150,000 for each premium year;

(7) the applicant shall provide evidence of the school's compliance with section 176.182;

(8) the applicant, except the state and its political subdivisions as described in section
deleted text begin 471.617 deleted text end new text begin 13.02 new text end , subdivision deleted text begin 1 deleted text end new text begin 11 new text end , deleted text begin shall deleted text end new text begin must new text end file with the board a continuous corporate surety
bond in the amount of new text begin no less than ten percent of the preceding year's gross income from
student tuition, fees, and other required institutional charges, but in no event less than
new text end $10,000, conditioned upon the faithful performance of all contracts and agreements with
students made by the applicant. new text begin New schools must base the bond amount on the anticipated
gross income from student tuition, fees, and other required institutional charges for the third
year of operation, but in no event less than $10,000. The applicant must compute the amount
of the surety bond and verify that the amount of the surety bond complies with this
subdivision. new text end The bond shall run to the deleted text begin state of Minnesota deleted text end new text begin board new text end and to any person who may
have a cause of action against the applicant arising at any time after the bond is filed and
before it is canceled for breach of any contract or agreement made by the applicant with
any student. deleted text begin The aggregate liability of the surety for all breaches of the conditions of the
bond shall not exceed $10,000. deleted text end The surety of the bond may cancel it upon giving 60 days'
notice in writing to the board and shall be relieved of liability for any breach of condition
occurring after the effective date of cancellation; and

(9) the applicant must deleted text begin , at all times during the term of the license, employ deleted text end new text begin appoint new text end a
designated deleted text begin licensed deleted text end school manager deleted text begin who maintains a cosmetology salon manager license deleted 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. 34.

Minnesota Statutes 2016, section 270.44, is amended to read:

270.44 CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.

The board shall charge the following fees:

(1) deleted text begin $105 deleted text end new text begin $150 new text end for a senior accredited Minnesota assessor license;

(2) deleted text begin $80 deleted text end new text begin $125 new text end for an accredited Minnesota assessor license;

(3) deleted text begin $65 deleted text end new text begin $95 new text end for a certified Minnesota assessor specialist license;

(4) deleted text begin $55 deleted text end new text begin $85 new text end for a certified Minnesota assessor license;

(5) deleted text begin $35 deleted text end new text begin $85 for a temporary license;
new text end

new text begin (6) $50 for a trainee registration;
new text end

new text begin (7) $80 new text end for grading a form appraisal;

deleted text begin (6) $60 deleted text end new text begin (8) $140 new text end for grading a narrative appraisal;

deleted text begin (7) $30 deleted text end new text begin (9) $50 new text end for deleted text begin a deleted text end reinstatement deleted text begin fee deleted text end ; new text begin and
new text end

deleted text begin (8) $25 deleted text end new text begin (10) $20 new text end for deleted text begin a deleted text end record retention deleted text begin fee; and
deleted text end

deleted text begin (9) $20 for an educational transcript deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with licenses issued after June
30, 2018.
new text end

Sec. 35.

Minnesota Statutes 2016, section 270.45, is amended to read:

270.45 DISPOSITION OF FEES AND FINES.

All fees and fines so established and collected deleted text begin shall deleted text end new text begin under section 270.44 must new text end be deleted text begin paid
to the commissioner of management and budget for deposit deleted text end new text begin deposited new text end in deleted text begin the general deleted text end new text begin a
dedicated account within the special revenue new text end fund. deleted text begin The expenses of carrying deleted text end new text begin Fees collected
under this section are appropriated to the Department of Revenue to carry new text end out the provisions
of sections 270.41 to 270.50 deleted text begin shall be paid from appropriations made to the board deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 36.

new text begin [270.455] REFUNDS OF FEES.
new text end

new text begin When the board determines that a fee or any part of a fee was erroneously paid to the
board, the board may refund or credit the amount of fees that was paid in error. These refunds
or credits shall be paid out of the dedicated account within the special revenue fund where
the fees were originally deposited.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 37.

Minnesota Statutes 2016, section 290.0681, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Account" means the historic credit administration account in the special revenue
fund.

(c) "Office" means the State Historic Preservation Office of the deleted text begin Minnesota Historical
Society deleted text end new text begin Department of Administration new text end .

(d) "Project" means rehabilitation of a certified historic structure, as defined in section
47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is allowed a
federal credit.

(e) deleted text begin "Society" means the Minnesota Historical Society.
deleted text end

deleted text begin (f) deleted text end "Federal credit" means the credit allowed under section 47(a)(2) of the Internal
Revenue Code.

deleted text begin (g) deleted text end new text begin (f) new text end "Placed in service" has the meaning used in section 47 of the Internal Revenue
Code.

deleted text begin (h) deleted text end new text begin (g) new text end "Qualified rehabilitation expenditures" has the meaning given in section 47 of
the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018.
new text end

Sec. 38.

Minnesota Statutes 2016, section 290.0681, subdivision 2, is amended to read:

Subd. 2.

Credit or grant allowed; certified historic structure.

(a) A credit is allowed
against the tax imposed under this chapter equal to not more than 100 percent of the credit
allowed under section 47(a)(2) of the Internal Revenue Code for a project. To qualify for
the credit:

(1) the project must receive Part 3 certification and be placed in service during the taxable
year; and

(2) the taxpayer must be allowed the federal credit and be issued a credit certificate for
the taxable year as provided in subdivision 4.

(b) The deleted text begin society deleted text end new text begin commissioner of administration new text end may pay a grant in lieu of the credit.
The grant equals 90 percent of the credit that would be allowed for the project.

(c) In lieu of the credit under paragraph (a), an insurance company may claim a credit
against the insurance premiums tax imposed under chapter 297I.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018.
new text end

Sec. 39.

Minnesota Statutes 2016, section 290.0681, subdivision 7, is amended to read:

Subd. 7.

Appropriations.

(a) An amount sufficient to pay the refunds authorized under
this section is appropriated to the commissioner from the general fund.

(b) An amount sufficient to pay the grants authorized under this section is appropriated
to the deleted text begin society deleted text end new text begin commissioner of administration new text end from the general fund.

(c) Amounts in the account are appropriated to the deleted text begin society deleted text end new text begin commissioner of administration new text end
for costs associated with personnel and administrative expenses related to administering
the credit for historic structure rehabilitation in this section, for refunding application fees
under subdivision 3, and for costs associated with preparing the determination of economic
impact report required in subdivision 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018.
new text end

Sec. 40.

Minnesota Statutes 2016, section 290.0681, subdivision 9, is amended to read:

Subd. 9.

Report; determination of economic impact.

The deleted text begin society deleted text end new text begin commissioner of
administration new text end must annually determine the economic impact to the state from the
rehabilitation of property for which credits or grants are provided under this section and
provide a written report on the impact to the chairs and ranking minority members of the
legislative committees on taxes of the senate and house of representatives, in compliance
with sections 3.195 and 3.197.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018.
new text end

Sec. 41.

Minnesota Statutes 2016, section 349A.08, subdivision 2, is amended to read:

Subd. 2.

Prizes not assignable.

A prize in the state lottery is not assignable deleted text begin except as
provided in subdivision 3 and deleted text end except that:

(1) if a prize winner dies before the prize is paid, the director shall pay the prize to the
prize winner's estate; and

(2) the director may pay a prize to a person other than the winner of that prize under an
appropriate court order.

Sec. 42.

Minnesota Statutes 2016, section 349A.10, subdivision 6, is amended to read:

Subd. 6.

Budget; plans.

new text begin (a) new text end The director shall prepare and submit a biennial budget plan
to the commissioner of management and budget. The governor shall recommend the
maximum amount available for the lottery in the budget the governor submits to the
legislature under section 16A.11. The maximum amount available to the lottery for operating
expenses and capital expenditures shall be determined by law. new text begin In addition, the director shall
appear at least once each fiscal year before the senate and house of representatives committees
having jurisdiction over gambling policy to present and explain the lottery's plans for future
games and the related advertising and promotions and spending plans for the next fiscal
year.
new text end

new text begin (b) For purposes of this section, new text end operating expenses shall not include new text begin :
new text end

new text begin (1) new text end expenses that are a direct function of lottery sales, which include the cost of lottery
prizes, amounts paid to lottery retailers as sales commissions or other compensation, amounts
paid to produce and deliver scratch lottery games, and amounts paid to an outside vendor
to operate and maintain an online gaming system deleted text begin . In addition, the director shall appear at
least once each fiscal year before the senate and house of representatives committees having
jurisdiction over gambling policy to present and explain the lottery's plans for future games
and the related advertising and promotions and spending plans for the next fiscal year. deleted text end new text begin ; and
new text end

new text begin (2) expenses related solely to the noncash year-end adjustment required for government
agencies to adjust the net actuarially determined pension liability which includes deferred
inflows, deferred outflows, noncash pension expense, unrestricted net deficit, and net pension
liability, in accordance with Statement 68 of the Governmental Accounting Standards Board.
new text end

Sec. 43.

Minnesota Statutes 2016, section 352D.06, subdivision 1, is amended to read:

Subdivision 1.

Annuity; reserves.

new text begin (a) new text end When a participant attains at least age 55,
terminates from covered service, and applies for a retirement annuity, the cash value of the
participant's shares must be transferred to the general state employees retirement fund and
deleted text begin must deleted text end be used to provide an annuity for the deleted text begin retired employee deleted text end new text begin participant new text end based upon the
participant's age when the benefit begins to accrue deleted text begin according to the reserve basis used by
the general state employees retirement plan in determining pensions and reserves deleted text end .

new text begin (b) Except for participants described in paragraph (c), the monthly amount of the annuity
must be determined using the actuarial assumptions in effect for the general state employees
retirement plan under section 356.215 on the accrual date.
new text end

new text begin (c) For any participant who retires on or after July 1, 2017, and before July 1, 2020,
when the participant is at least age 63 or has had at least 26 years of covered service, the
monthly amount of the annuity must be determined using the actuarial assumptions in effect
for the general state employees retirement plan under section 356.215 on June 30, 2016.
new text end

new text begin Subd. 1a. new text end

new text begin Postretirement adjustments. new text end

The annuity under deleted text begin this deleted text end subdivision new text begin 1 new text end is eligible
for postretirement adjustments under section 356.415.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 44.

Minnesota Statutes 2016, section 353.27, subdivision 3c, is amended to read:

Subd. 3c.

Former MERF members; member and employer contributions.

(a) For
the period July 1, 2015, through December 31, 2031, the member contributions for former
members of the Minneapolis Employees Retirement Fund and by the former Minneapolis
Employees Retirement Fund-covered employing units are governed by this subdivision.

(b) The member contribution for a public employee who was a member of the former
Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of
the employee.

(c) The employer regular contribution with respect to a public employee who was a
member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75
percent of the salary of the employee.

(d) deleted text begin For calendar years 2015 and 2016, deleted text end The new text begin annual new text end employer supplemental contribution
is the employing unit's share of $31,000,000. For calendar years 2017 deleted text begin through 2031 deleted text end new text begin and
2018 new text end , the employer supplemental contribution is the employing unit's share of $21,000,000.

(e) Each employing unit's share under paragraph (d) is the amount determined from an
allocation between each employing unit in the portion equal to the unit's employer
supplemental contribution paid or payable under Minnesota Statutes 2012, section 353.50,
during calendar year 2014.

(f) The employer supplemental contribution amount under paragraph (d) for calendar
year 2015 must be invoiced by the executive director of the Public Employees Retirement
Association by July 1, 2015. The calendar year 2015 payment is payable in a single amount
on or before September 30, 2015. For subsequent calendar years, the employer supplemental
contribution under paragraph (d) must be invoiced on January 31 of each year and is payable
in two parts, with the first half payable on or before July 31 and with the second half payable
on or before December 15. Late payments are payable with compound interest at the rate
of 0.71 percent per month for each month or portion of a month that has elapsed after the
due date.

(g) The employer supplemental contribution under paragraph (d) terminates on December
31, 2031.

Sec. 45.

Minnesota Statutes 2016, section 353.505, is amended to read:

353.505 STATE CONTRIBUTIONS; FORMER MERF DIVISION.

(a) On September 15, deleted text begin 2015, and September 15, 2016 deleted text end new text begin 2019 new text end , new text begin and annually thereafter, new text end the
state shall pay to the general employees retirement plan of the Public Employees Retirement
Association, with respect to the former MERF division, $6,000,000. deleted text begin By September 15 of
each year after 2016,
deleted text end

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

deleted text begin (b) deleted text end new text begin (c) new text end State contributions under this section end on September 15, 2031.

Sec. 46.

Minnesota Statutes 2016, section 471.193, subdivision 6, is amended to read:

Subd. 6.

Communication with state historic preservation officer.

Proposed site
designations and design guidelines must be sent to the state historic preservation officer at
the deleted text begin Minnesota Historical Society deleted text end new text begin Department of Administration new text end , who shall review and
comment on the proposal within 60 days. By October 31 of each year, each commission
shall submit an annual report to the state historic preservation officer. The report must
summarize the commission's activities, including designations, reviews, and other activities
during the previous 12 months.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018.
new text end

Sec. 47.

Minnesota Statutes 2016, section 508.12, subdivision 1, is amended to read:

Subdivision 1.

Examiner and deputy examiner.

The judges of the district court shall
appoint a competent attorney in each county within their respective districts to be an examiner
of titles and legal adviser to the registrar in said county, to which examiner all applications
to register title to land are referred without further order, and may appoint attorneys to serve
as deputy examiners who shall act in the name of the examiner and under the examiner's
supervision and control, and the deputy's acts shall be the acts of the examiners. The examiner
of titles and deputy examiners shall hold office subject to the will and discretion of the
district court by whom appointed. The examiner's compensation and that of the examiner's
deputies shall be fixed and determined by the court and paid in the same manner as the
compensation of other county employees is paid except that in all counties having fewer
than 75,000 inhabitants, and in Stearns, Dakota, Scott, Wright, new text begin Sherburne, new text end and Olmsted
Counties the fees and compensation of the examiners for services as legal adviser to the
registrar shall be determined by the judges of the district court and paid in the same manner
as the compensation of other county employees is paid, but in every other instance shall be
paid by the person applying to have the person's title registered or for other action or relief
which requires the services, certification or approval of the examiner.

Sec. 48.

Minnesota Statutes 2016, section 518A.79, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Open meetings. new text end

new text begin Except as otherwise provided in this section, the task force
is subject to chapter 13D. A meeting of the task force occurs when a quorum is present and
the members receive information, discuss, or take action on any matter relating to the duties
of the task force. The task force may conduct meetings as provided in section 13D.015 or
13D.02. The task force may conduct meetings at any location in the state that is appropriate
for the purposes of the task force as long as the location is open and accessible to the public.
For legislative members of the task force, enforcement of this subdivision is governed by
section 3.055, subdivision 2. For nonlegislative members of the task force, enforcement of
this subdivision is governed by section 13D.06, subdivisions 1 and 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018.
new text end

Sec. 49.

Laws 2016, chapter 127, section 8, is amended to read:

Sec. 8. EFFECTIVE DATE; APPLICATION.

Sections 1 to 7 are effective the day following final enactment. With respect to eyelash
technicians, the Board of Cosmetologist Examiners must not enforce sections 1 to 7 until
deleted text begin July 1, 2017 deleted text end new text begin February 1, 2018 new text end . Any educational or training requirements developed by the
board regarding eyelash technicians must be 14 hours.

Sec. 50.

Laws 2017, chapter 21, section 1, subdivision 2, is amended to read:

Subd. 2.

Exemption; legislature may waive.

(a) This section does not apply to contracts
with a value of less than deleted text begin $1,000 deleted text end new text begin $50,000 new text end .

(b) The legislature may waive application of this section on a contract if the legislature
determines that compliance is not practicable or in the best interests of the state.

Sec. 51.

Laws 2017, chapter 21, section 3, subdivision 2, is amended to read:

Subd. 2.

Exemption; commissioner may waive.

(a) This section does not apply to
contracts with a value of less than deleted text begin $1,000 deleted text end new text begin $50,000 new text end .

(b) The commissioner may waive application of this section on a contract if the
commissioner determines that compliance is not practicable or in the best interests of the
state.

Sec. 52. new text begin SMALL AGENCY ASSISTANCE PROGRAM; LEGISLATIVE AUDITOR
REVIEW.
new text end

new text begin No later than February 1, 2018, the legislative auditor is requested to conduct a program
evaluation of the small agency assistance program authorized under Minnesota Statutes,
section 16B.371. The program evaluation must be conducted according to the standards
provided for a program evaluation in Minnesota Statutes, section 3.971, subdivision 7.
new text end

Sec. 53. new text begin HISTORIC PRESERVATION; LEGISLATIVE AUDITOR REVIEW.
new text end

new text begin The legislative auditor is requested to conduct a program evaluation of the State Historic
Preservation Office no later than January 1, 2018. The program evaluation must be consistent
with the standards provided in Minnesota Statutes, section 3.971, subdivision 7, and include
consideration of the office's consistency in its responsiveness to project proposals, and in
its treatment of historic sites in the state, including those that are listed on the national
register, those that are eligible for the national register, and those that are registered as state
historic sites by the Minnesota Historical Society. The evaluation should also include a
review of approaches to state historic preservation governance in other states, in comparison
to Minnesota's governance structure, with emphasis on the impact of those approaches on
the timeliness and consistency of preservation work in those states.
new text end

Sec. 54. new text begin HISTORIC PRESERVATION; TRANSFER.
new text end

new text begin (a) The powers, duties, responsibilities, personnel, assets, and unexpended funds relating
to functions assigned to the Minnesota State Historic Preservation Office are transferred to
the Department of Administration effective March 1, 2018. For the purpose of this section,
the Minnesota State Historical Society is considered a state agency under Minnesota Statutes,
sections 15.039 and 16B.37.
new text end

new text begin (b) The commissioner of the Department of Administration in consultation with the
Minnesota Historical Society must transfer functions from the Minnesota Historical
Preservation Office to the Department of Administration. The transfer must provide for the
full transition of all State Historic Preservation Office functions to the Department of
Administration.
new text end

new text begin (c) A transferred employee's length of service remains uninterrupted as if the employee
had been employed by the Department of Administration during the employee's time of
employment by the Minnesota Historical Society.
new text end

new text begin The employee shall have all accumulated unliquidated vacation and sick leave hours
transferred to the employee's credit, up to the maximum accumulations permitted by the
state collective bargaining agreement or compensation plan adopted under Minnesota
Statutes, section 43A.18, governing the transferred position. Vacation and sick leave hours
are not transferred if the transferred position does not provide for the leave.
new text end

new text begin The salary rate of employees transferred under this section may not decrease as a result
of the transfer to state employment. If an employee's salary rate is above the maximum of
the class to which the transferred position is allocated, so long as the employee remains in
the transferred 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 transferred position
is allocated, unless such increases are specifically provided in the state collective bargaining
agreement or compensation plan governing the transferred position.
new text end

new text begin All transferred employees must successfully complete a probationary period of at least
one year beginning the effective date of the transfer in order to attain permanent status in
the class to which the transferred position is allocated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018.
new text end

Sec. 55. new text begin OFFICE OF MN.IT SERVICES; IT OPTIMIZATION REPORT
REQUIRED.
new text end

new text begin The chief information officer shall report by December 31, 2018, on the progress of
executive branch information technology optimization, including the status of data center
consolidation, the status and plans for use of public cloud technology, and the status of state
agency transition to enterprise information technology services.
new text end

Sec. 56. new text begin INITIAL TRANSIT FINANCIAL ACTIVITY REPORTING.
new text end

new text begin (a) The first transit financial activity review and report submitted under Minnesota
Statutes, section 3.972, subdivision 4, must include financial information from the period
beginning on January 1, 2016, and through the end of the fiscal quarter immediately preceding
the date of the report.
new text end

new text begin (b) The legislative auditor must provide a copy of the review under paragraph (a) to
each county that is party to the joint powers agreement under Minnesota Statutes, section
297A.992.
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. 57. new text begin TRANSITION; STATE AUDITOR ENTERPRISE FUND.
new text end

new text begin Notwithstanding any law to the contrary, receipts received by the state auditor for fiscal
year 2018 and beyond, from examinations conducted by the state auditor under Minnesota
Statutes, chapter 6, must be credited to the general fund. Amounts in the state auditor
enterprise fund at the close of fiscal year 2017 are transferred to the general fund.
new text end

Sec. 58. new text begin RETENTION OF FISCAL NOTE SYSTEM; LEGISLATIVE BUDGET
OFFICE ACCESS.
new text end

new text begin The Legislative Coordinating Commission must contract with the commissioner of
management and budget to maintain and, as needed, upgrade the fiscal note tracking system
funded under Laws 2013, chapter 142, article 1, section 13. The commissioner must provide
the Legislative Budget Office established under this act with complete access to, and use
of, the system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 8, 2019.
new text end

Sec. 59. new text begin LEGISLATIVE BUDGET OFFICE TRANSITION PLANNING TASK
FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Legislative Budget Office Transition Planning Task
Force is established. The task force consists of the following members:
new text end

new text begin (1) two members of the house of representatives, one appointed by the speaker of the
house, and one appointed by the minority leader of the house of representatives;
new text end

new text begin (2) two members of the senate appointed by the senate Subcommittee on Committees
of the Committee on Rules and Administration, one of whom must represent the majority
caucus of the senate, and one of whom must represent the minority caucus of the senate;
new text end

new text begin (3) the legislative auditor;
new text end

new text begin (4) the commissioner of management and budget; and
new text end

new text begin (5) the state budget director.
new text end

new text begin The chief nonpartisan fiscal analyst of the house of representatives, the lead nonpartisan
fiscal analyst of the senate, and two members from executive branch agencies, appointed
by the commissioner of management and budget, shall serve as ex-officio, nonvoting
members of the task force. Appointments required by this section must be made no later
than July 15, 2017. The chair of the Legislative Coordinating Commission shall designate
one member of the task force to serve as its chair.
new text end

new text begin Subd. 2. new text end

new text begin Duties; report required. new text end

new text begin (a) The task force must develop a plan for the orderly
transition of fiscal note and local impact note responsibilities from Minnesota Management
and Budget to the Legislative Budget Office, as required by this act. At a minimum, the
plan must consider the office's responsibilities for fiscal notes and local impact notes, the
duties of state agencies and departments and local governments in facilitating the office's
work, and any other issues relevant to the transition of duties to the office, as determined
by the task force. The plan may include recommendations for additional legislation as
necessary to implement the task force's transition plan, or to further clarify or structure the
office's responsibilities.
new text end

new text begin (b) The task force must submit a preliminary report no later than January 15, 2018, and
a final report no later than December 1, 2018, to the chairs and ranking minority members
of the house of representatives Ways and Means Committee and the senate Finance
Committee. The final report must describe the task force's work, including recommendations
for a transition plan and any recommendations for legislation developed under paragraph
(a).
new text end

new text begin Subd. 3. new text end

new text begin Staff. new text end

new text begin The Legislative Coordinating Commission must provide research and
administrative assistance to support the work of the task force.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin The task force expires upon submission of its final report to the
legislature under subdivision 2.
new text end

Sec. 60. new text begin MINNESOTA ADMINISTRATIVE RULES STATUS SYSTEM (MARSS)
WORKING GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The MARSS working group consists of the following nine
members:
new text end

new text begin (1) the chief judge of the Office of Administrative Hearings, or a designee;
new text end

new text begin (2) the secretary of state, or a designee;
new text end

new text begin (3) a representative from the Interagency Rules Committee (IRC) appointed by the
committee;
new text end

new text begin (4) a representative from each of the following agencies with rulemaking experience
appointed by the appropriate commissioner:
new text end

new text begin (i) the Department of Health;
new text end

new text begin (ii) the Minnesota Pollution Control Agency;
new text end

new text begin (iii) the Department of Transportation; and
new text end

new text begin (iv) the Department of Labor and Industry;
new text end

new text begin (5) as designated by the IRC, a representative from a health-related board; and
new text end

new text begin (6) as designated by the IRC, a representative from a non-health-related board.
new text end

new text begin Subd. 2. new text end

new text begin MARSS description. new text end

new text begin The Minnesota Administrative Rules Status System
(MARSS) is a concept for a new software application. The application would be built and
maintained by the Revisor's Office. Executive branch agencies and others would upload
official rulemaking record documents to the system. The goal is to improve public access,
security, preservation, and transparency of state agencies' official rulemaking records through
the creation of a single online records system. The system would serve as a single Internet
location for the public to track rulemaking progress and access the official rulemaking
record. Agencies would fulfill their requirement to maintain and preserve the official
rulemaking record by submitting required documents to the revisor for inclusion in the
online records system.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The working group must report by February 1, 2018, to the chairs and
ranking minority members of the committees in the house of representatives and senate
with jurisdiction over policy and finance for the legislature. The report must identify the
functional and nonfunctional requirements of the MARSS system. The working group must
define a funding mechanism to share the cost to build and maintain the MARSS system
among state agencies and departments.
new text end

new text begin Subd. 4. new text end

new text begin Administration provisions. new text end

new text begin (a) The revisor of statutes or the revisor's designee
must convene the initial meeting of the working group by August 1, 2017. Upon request of
the working group, the revisor must provide meeting space and administrative services for
the group.
new text end

new text begin (b) The working group must elect a chair from among its members at the first meeting.
new text end

new text begin (c) Members serve without compensation and without reimbursement for expenses.
new text end

new text begin (d) The working group expires on February 1, 2018, or upon submission of documents
fulfilling its duties, whichever is earlier.
new text end

new text begin Subd. 5. new text end

new text begin Deadline for appointments and designations. new text end

new text begin The appointments and
designations authorized by this section must be completed by July 1, 2017.
new text end

Sec. 61. new text begin ICE PALACE ON CAPITOL GROUNDS AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Use agreement; terms required. new text end

new text begin The commissioner of administration
may enter a use agreement with the St. Paul Festival and Heritage Foundation for the
construction, operation, and removal of an ice palace and related temporary structures on
the grounds of the State Capitol complex. If a use agreement for this purpose is entered, the
terms must include the following:
new text end

new text begin (1) mutually agreed upon beginning and end dates for access to the grounds for
construction, operation, and removal of the ice palace and related temporary structures;
new text end

new text begin (2) notwithstanding Minnesota Rules, part 7525.0400, an allowance for the St. Paul
Festival and Heritage Foundation to establish fees for admission to the ice palace and for
participation in related activities, and for vendors to sell concessions subject to terms
negotiated in the use agreement. Any fees established must allow a reasonable opportunity
for all Minnesotans, regardless of income, to access the palace and participate in related
activities, and must allow free or discounted admission to members of the military, military
veterans, and their families. A fee may not be charged for general admission to the Capitol
grounds or, to the extent practicable, for access to public memorials and monuments located
on the Capitol grounds;
new text end

new text begin (3) notwithstanding Minnesota Statutes, section 15B.28, and related rules of the Capitol
Area Architectural and Planning Board, an allowance for the St. Paul Festival and Heritage
Foundation to erect advertising devices promoting the ice palace and its sponsors and donors,
subject to terms negotiated in the use agreement;
new text end

new text begin (4) a restriction on private events that limit public access to the ice palace or surrounding
Capitol grounds, without prior approval of the commissioner of administration; and
new text end

new text begin (5) a requirement that, following removal of the ice palace and related temporary
structures, the St. Paul Festival and Heritage Foundation restore the Capitol grounds to the
same condition as existed prior to their construction.
new text end

new text begin Subd. 2. new text end

new text begin Additional terms. new text end

new text begin In addition to the terms required by subdivision 1, a use
agreement authorized by this section may include additional terms as necessary to preserve
the integrity, dignity, and security of the State Capitol building, the Capitol grounds, and
the surrounding public buildings, memorials, and monuments, and to ensure compliance
with other applicable laws governing commercial activity on public property.
new text end

new text begin Subd. 3. new text end

new text begin Costs, expenses, and liabilities. new text end

new text begin Unless expressly provided in the use agreement,
any costs or expenses incurred by the state or the city of St. Paul in implementing a use
agreement entered under this section must be paid or reimbursed by the St. Paul Festival
and Heritage Foundation. Notwithstanding Minnesota Statutes, section 3.736, subdivision
1, and Minnesota Statutes, section 466.02, the state, the city of St. Paul, and their employees
are not liable for losses incurred during the construction, operation, or removal of an ice
palace or related temporary structures, or losses incurred by a person while visiting the ice
palace or participating in related activities.
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. 62. new text begin WAITE PARK; HOTEL INSPECTION.
new text end

new text begin (a) Notwithstanding any other law to the contrary and in addition to any other requirement
in law, the city of Waite Park may adopt an ordinance to require a hotel, motel, or lodging
establishment operating within the city's jurisdiction to have a valid license issued by the
city. The license may prohibit the licensee from:
new text end

new text begin (1) knowingly allowing a room to be occupied for purposes of sex trafficking;
new text end

new text begin (2) knowingly allowing a room to be occupied for the purposes of illegal drug activity;
new text end

new text begin (3) knowingly allowing a room to be occupied by a minor for the consumption of
alcoholic beverages;
new text end

new text begin (4) prohibiting the inspection of the licensed premises;
new text end

new text begin (5) failing to report observed or suspected illegal activity to the police in a reasonable
period of time; and
new text end

new text begin (6) failure to maintain the licensed premises to all building, fire, mechanical, zoning or
licensing codes.
new text end

new text begin The ordinance may provide for inspections related to the activities the license addresses.
The city may collect a reasonable fee related to the cost of issuing the license and conducting
inspections.
new text end

new text begin (b) "Hotel," "motel," and "lodging establishment" are as defined in Minnesota Statutes,
section 157.15.
new text end

new text begin (c) The authority in this section does not replace or diminish the authority of the
community health board to inspect and license any hotel, motel, or lodging establishment
in the city.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without
local approval, as provided in Minnesota Statutes, section 645.023, subdivision 1, paragraph
(a).
new text end

Sec. 63. new text begin EYELASH TECHNICIAN GRANDFATHERING.
new text end

new text begin (a) The board must issue grandfathered eyelash technician licenses no later than February
1, 2018, under the conditions in this section.
new text end

new text begin (b) A complete grandfathering application for an eyelash technician license must be
received in the board office between August 1, 2017, and January 31, 2018, and must contain:
new text end

new text begin (1) proof of a high school diploma or equivalent;
new text end

new text begin (2) proof of completion of an eyelash extension training course before July 1, 2017;
new text end

new text begin (3) proof of completion of a six-hour board-approved public health and safety course
provided by a board-licensed school or a board-recognized professional association organized
under Minnesota Statutes, chapter 317A. Four hours must be related to health, safety, and
infection control and two hours must be related to Minnesota laws and rules governing
cosmetology;
new text end

new text begin (4) original passing results no more than one year old of board-approved laws and rules
test and theory tests; and
new text end

new text begin (5) the practitioner fees required under Minnesota Statutes, section 155A.25.
new text end

new text begin (c) A complete grandfathering application for an eyelash salon manager license must
be received in the board office between August 1, 2017, and January 31, 2018, and must
contain:
new text end

new text begin (1) proof of a high school diploma or equivalent;
new text end

new text begin (2) proof of completion of an eyelash extension training course before July 1, 2017;
new text end

new text begin (3) documentation of at least 2,700 hours of experience performing eyelash extensions
within the last three years;
new text end

new text begin (4) original passing results no more than one year old of board-approved laws and rules
test and theory tests;
new text end

new text begin (5) original passing results no more than one year old of board-approved salon manager
test;
new text end

new text begin (6) proof of a six-hour board-approved public health and safety course provided by a
board-licensed school or a board-recognized professional association organized under
Minnesota Statutes, chapter 317A. Four hours must be related to infection control and two
hours must be related to Minnesota laws and rules; and
new text end

new text begin (7) the practitioner fees required under Minnesota Statutes, section 155A.25.
new text end

new text begin (d) Grandfathered licenses must not be expedited under Minnesota Statutes, section
155A.25, subdivision 7. The application timelines under Minnesota Statutes, section 155A.25,
subdivisions 5, 6, and 8, do not apply to grandfathered licenses.
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. 64. new text begin EYELASH TECHNICIAN RULEMAKING.
new text end

new text begin The Board of Cosmetologist Examiners shall adopt rules governing the eyelash technician
and salon licenses, which must include scope of practice, the conditions and process of
issuing and renewing the license, requirements related to education and testing, and 14 hours
of training regarding application of eyelash extensions in a board-licensed school. The board
may use the expedited rule process in Minnesota Statutes, section 14.389. The grant of
rulemaking authority under this section expires May 31, 2019.
new text end

Sec. 65. new text begin EYELASH TECHNICIAN LICENSING.
new text end

new text begin The Board of Cosmetologist Examiners must not issue an eyelash practitioner license
before February 1, 2018, except for grandfathered licenses issued under section 59. The
Board of Cosmetologist Examiners must not require a person to have an eyelash practitioner
license for eyelash extensions before February 1, 2018.
new text end

Sec. 66. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 6.581, subdivision 1; and 349A.08, subdivision 3, new text end new text begin
are repealed.
new text end

ARTICLE 3

CAMPAIGN FINANCE AND ELECTIONS

Section 1.

Minnesota Statutes 2016, section 10A.01, subdivision 12, is amended to read:

Subd. 12.

Depository.

"Depository" means a bank, savings association, or credit union
organized under federal or state law and transacting business within this state. new text begin The
depositories of a political committee or political fund include any depository in which the
committee or fund has a savings, checking, or similar account, or purchases a money market
certificate or certificate of deposit.
new text end

Sec. 2.

Minnesota Statutes 2016, section 10A.01, subdivision 16, is amended to read:

Subd. 16.

Election cycle.

"Election cycle" means the period from January 1 following
a general election for an office to December 31 following the next general election for that
office, except that "election cycle" for a special election means the period from the date the
special election writ is issued to deleted text begin 60 deleted text end new text begin 15 new text end days after the special election is held. For a regular
election, the period from January 1 of the year prior to an election year through December
31 of the election year is the "election segment" of the election cycle. Each other two-year
segment of an election cycle is a "nonelection segment" of the election cycle. An election
cycle that consists of two calendar years has only an election segment. The election segment
of a special election cycle includes the entire special election cycle.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any special election cycle that starts on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2016, section 10A.025, subdivision 1a, is amended to read:

Subd. 1a.

Electronic filing.

new text begin (a) new text end A report or statement required to be filed under this
chapter may be filed electronically. The board shall adopt rules to regulate electronic filing
and to ensure that the electronic filing process is secure.

new text begin (b) A document filed by facsimile transmission or electronic filing system has the same
force and effect as filing an original paper document.
new text end

new text begin (c) In order to provide a secure environment for the submission of electronic files, the
board must require that a filer use a personal identification code when submitting an
electronic file. The board may also request the filer to provide a valid e-mail address in
order to receive confirmation and verification messages from the board.
new text end

new text begin (d) After an electronic file is processed by the board, the information contained in the
electronic file becomes the property of the state subject to the terms of the Data Practices
Act under chapter 13.
new text end

new text begin (e) In the case of a filing by facsimile transmission, the filer must retain the original of
the filed document and a record of the date and time of the transmission. If an electronic
filing system is used to submit an electronic file to the board, the filer must retain as
documentation the database and information on which the electronic submission of data is
based. The database and records are subject to audit as provided in this chapter.
new text end

new text begin (f) Within five days of a request by the board, any person filing a document by facsimile
transmission or electronic filing system shall refile the document by one of the other filing
methods provided in Minnesota Rules, part 4501.0500, subpart 1.
new text end

new text begin (g) Technical problems that prevent the successful submission of a facsimile transmission
or electronic file do not relieve the filer of the responsibility of meeting the requirements
of this chapter. An audit trail that demonstrates that the facsimile transmission or electronic
file was successfully submitted in a timely fashion may be used by the board to waive late
filing fees.
new text end

Sec. 4.

Minnesota Statutes 2016, section 10A.04, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Reporting by multiple lobbyists representing the same entity. new text end

new text begin Clauses (1)
to (6) apply when a single individual, association, political subdivision, or public higher
education system is represented by more than one lobbyist.
new text end

new text begin (1) The entity must appoint one designated lobbyist to report lobbyist disbursements
made by the entity. The designated lobbyist must indicate that status on the periodic reports
of lobbyist disbursements.
new text end

new text begin (2) A reporting lobbyist may consent to report on behalf of one or more other lobbyists
for the same entity, in which case, the other lobbyists are persons whose activities the
reporting lobbyist must disclose and are subject to the disclosure requirements of subdivision
3. Lobbyist disbursement reports filed by a reporting lobbyist must include the names and
registration numbers of the other lobbyists whose activities are included in the report.
new text end

new text begin (3) Lobbyists whose activities are accounted for by a reporting lobbyist are not required
to file lobbyist disbursement reports.
new text end

new text begin (4) A lobbyist whose lobbying disbursements are provided to the board through a
reporting lobbyist must supply all relevant information on disbursements to the reporting
lobbyist no later than five days before the prescribed filing date.
new text end

new text begin (5) The reporting periods and due dates for a reporting lobbyist are those provided in
subdivision 2. The late filing provisions in subdivision 5 apply to reports required by this
subdivision.
new text end

new text begin (6) The reporting lobbyist must indicate the names and registration numbers of any
lobbyists who did not provide their lobbying disbursements for inclusion in a report. The
late filing provisions in subdivision 5 apply to lobbyists who fail to report information to
the reporting lobbyist.
new text end

Sec. 5.

Minnesota Statutes 2016, section 10A.071, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Gift" means money, real or personal property, a service, a loan, a forbearance or
forgiveness of indebtedness, or a promise of future employment, that is given and received
without the giver receiving consideration of equal or greater value in return.

(c) "Official" means a public official, an employee of the legislature, or a local official
of a metropolitan governmental unit.

new text begin (d) "Plaque" means a decorative item with an inscription recognizing an individual for
an accomplishment.
new text end

Sec. 6.

Minnesota Statutes 2016, section 10A.09, subdivision 5, is amended to read:

Subd. 5.

Form.

(a) A statement of economic interest required by this section must be
on a form prescribed by the board. The individual filing must provide the following
information:

(1) name, address, occupation, and principal place of business;

(2) the name of each associated business and the nature of that association;

(3) a listing of all real property within the state, excluding homestead property, in which
the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as buyer or
seller, or an option to buy, whether direct or indirect, if the interest is valued in excess of
$2,500; or (ii) an option to buy, if the property has a fair market value of more than $50,000;

(4) a listing of all real property within the state in which a partnership of which the
individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed as
buyer or seller, or an option to buy, whether direct or indirect, if the individual's share of
the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the property
has a fair market value of more than $50,000. A listing under this clause or clause (3) must
indicate the street address and the municipality or the section, township, range and
approximate acreage, whichever applies, and the county in which the property is located;

(5) a listing of any investments, ownership, or interests in property connected with
pari-mutuel horse racing in the United States and Canada, including a racehorse, in which
the individual directly or indirectly holds a partial or full interest or an immediate family
member holds a partial or full interest;

(6) a listing of the principal business or professional activity category of each business
from which the individual receives more than $50 in any month as an employee, if the
individual has an ownership interest of 25 percent or more in the business; deleted text begin and
deleted text end

(7) a listing of each principal business or professional activity category from which the
individual received compensation of more than $2,500 in the past 12 months as an
independent contractor deleted text begin . deleted text end new text begin ; and
new text end

new text begin (8) the full name of each security with a value of more than $2,500 owned in part or in
full by the public official at any time during the reporting period.
new text end

(b) The business or professional categories for purposes of paragraph (a), clauses (6)
and (7), must be the general topic headings used by the federal Internal Revenue Service
for purposes of reporting self-employment income on Schedule C. This paragraph does not
require an individual to report any specific code number from that schedule. Any additional
principal business or professional activity category may only be adopted if the category is
enacted by law.

new text begin (c) For the purpose of an original statement of economic interest, "compensation in any
month" includes only compensation received in the calendar month immediately preceding
the date of appointment as a public official or filing as a candidate.
new text end

new text begin (d) For the purpose of calculating the amount of compensation received from any single
source in a single month, the amount shall include the total amount received from the source
during the month, whether or not the amount covers compensation for more than one month.
new text end

Sec. 7.

Minnesota Statutes 2016, section 10A.09, subdivision 6, is amended to read:

Subd. 6.

Annual statement.

new text begin (a) new text end Each individual who is required to file a statement of
economic interest must also file an annual statement by the last Monday in January of each
year that the individual remains in office. The annual statement must cover the period
through December 31 of the year prior to the year when the statement is due. The annual
statement must include the amount of each honorarium in excess of $50 received since the
previous statement and the name and address of the source of the honorarium. The board
must maintain each annual statement of economic interest submitted by an officeholder in
the same file with the statement submitted as a candidate.

new text begin (b) For the purpose of annual statements of economic interest to be filed, "compensation
in any month" includes compensation and honoraria received in any month between the
end of the period covered in the preceding statement of economic interest and the end of
the current period.
new text end

new text begin (c) An individual must file the annual statement of economic interest required by this
subdivision to cover the period for which the individual served as a public official even
though at the time the statement was filed, the individual is no longer holding that office as
a public official.
new text end

Sec. 8.

Minnesota Statutes 2016, section 10A.15, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Contributions from Hennepin County registered associations. new text end

new text begin In lieu of
registration with the board, an association registered with the Hennepin County filing officer
under sections 383B.041 to 383B.058 that makes contributions of more than $200 to a
committee or fund in a calendar year may notify the recipient committee of its registration
with Hennepin County, including its registration number, and instruct the recipient committee
to include the notice when the recipient committee discloses receipt of the contribution.
new text end

Sec. 9.

new text begin [10A.155] VALUE OF CONTRIBUTIONS OF AUTOMOBILE USE.
new text end

new text begin Automobile use provided to a committee by an individual may be valued at the lowest
rate used by the state to reimburse its employees for automobile use. Alternatively, the value
of the automobile may be calculated as the actual cost of fuel, maintenance, repairs, and
insurance directly related to the use of the automobile. An automobile provided by an
association must be valued at the fair market value for renting an equivalent automobile.
new text end

Sec. 10.

Minnesota Statutes 2016, section 10A.20, subdivision 3, is amended to read:

Subd. 3.

Contents of report.

(a) The report required by this section must include each
of the items listed in paragraphs (b) to deleted text begin (o) deleted text end new text begin (q) new text end that are applicable to the filer. The board shall
prescribe forms based on filer type indicating which of those items must be included on the
filer's report.

(b) The report must disclose the amount of liquid assets on hand at the beginning of the
reporting period.

(c) The report must disclose the name, address, employer, or occupation if self-employed,
and registration number if registered with the board, of each individual or association that
has made one or more contributions to the reporting entity, including the purchase of tickets
for a fund-raising effort, that in aggregate within the year exceed $200 for legislative or
statewide candidates or more than $500 for ballot questions, together with the amount and
date of each contribution, and the aggregate amount of contributions within the year from
each source so disclosed. A donation in kind must be disclosed at its fair market value. An
approved expenditure must be listed as a donation in kind. A donation in kind is considered
consumed in the reporting period in which it is received. The names of contributors must
be listed in alphabetical order. Contributions from the same contributor must be listed under
the same name. When a contribution received from a contributor in a reporting period is
added to previously reported unitemized contributions from the same contributor and the
aggregate exceeds the disclosure threshold of this paragraph, the name, address, and
employer, or occupation if self-employed, of the contributor must then be listed on the
report.

(d) The report must disclose the sum of contributions to the reporting entity during the
reporting period.

(e) The report must disclose each loan made or received by the reporting entity within
the year in aggregate in excess of $200, continuously reported until repaid or forgiven,
together with the name, address, occupation, principal place of business, if any, and
registration number if registered with the board of the lender and any endorser and the date
and amount of the loan. If a loan made to the principal campaign committee of a candidate
is forgiven or is repaid by an entity other than that principal campaign committee, it must
be reported as a contribution for the year in which the loan was made.

(f) The report must disclose each receipt over $200 during the reporting period not
otherwise listed under paragraphs (c) to (e).

(g) The report must disclose the sum of all receipts of the reporting entity during the
reporting period.

(h) The report must disclose the name, address, and registration number if registered
with the board of each individual or association to whom aggregate expenditures, approved
expenditures, independent expenditures, and ballot question expenditures have been made
by or on behalf of the reporting entity within the year in excess of $200, together with the
amount, date, and purpose of each expenditure and the name and address of, and office
sought by, each candidate on whose behalf the expenditure was made, identification of the
ballot question that the expenditure was intended to promote or defeat and an indication of
whether the expenditure was to promote or to defeat the ballot question, and in the case of
independent expenditures made in opposition to a candidate, the candidate's name, address,
and office sought. A reporting entity making an expenditure on behalf of more than one
candidate for state or legislative office must allocate the expenditure among the candidates
on a reasonable cost basis and report the allocation for each candidate.

(i) The report must disclose the sum of all expenditures made by or on behalf of the
reporting entity during the reporting period.

(j) The report must disclose the amount and nature of an advance of credit incurred by
the reporting entity, continuously reported until paid or forgiven. If an advance of credit
incurred by the principal campaign committee of a candidate is forgiven by the creditor or
paid by an entity other than that principal campaign committee, it must be reported as a
donation in kind for the year in which the advance of credit was made.

(k) The report must disclose the name, address, and registration number if registered
with the board of each political committee, political fund, principal campaign committee,
or party unit to which contributions have been made that aggregate in excess of $200 within
the year and the amount and date of each contribution.

(l) The report must disclose the sum of all contributions made by the reporting entity
during the reporting period.

(m) The report must disclose the name, address, and registration number if registered
with the board of each individual or association to whom noncampaign disbursements have
been made that aggregate in excess of $200 within the year by or on behalf of the reporting
entity and the amount, date, and purpose of each noncampaign disbursement.

(n) The report must disclose the sum of all noncampaign disbursements made within
the year by or on behalf of the reporting entity.

(o) The report must disclose the name and address of a nonprofit corporation that provides
administrative assistance to a political committee or political fund as authorized by section
211B.15, subdivision 17, the type of administrative assistance provided, and the aggregate
fair market value of each type of assistance provided to the political committee or political
fund during the reporting period.

new text begin (p) Legislative, statewide, and judicial candidates, party units, and political committees
and funds must itemize contributions that in aggregate within the year exceed $200 for
legislative or statewide candidates or more than $500 for ballot questions on reports submitted
to the board. The itemization must include the date on which the contribution was received,
the individual or association that provided the contribution, and the address of the contributor.
Additionally, the itemization for a donation in kind must provide a description of the item
or service received. Contributions that are less than the itemization amount must be reported
as an aggregate total.
new text end

new text begin (q) Legislative, statewide, and judicial candidates, party units, political committees and
funds, and committees to promote or defeat a ballot question must itemize expenditures and
noncampaign disbursements that in aggregate exceed $200 in a calendar year on reports
submitted to the board. The itemization must include the date on which the committee made
or became obligated to make the expenditure or disbursement, the name and address of the
vendor that provided the service or item purchased, and a description of the service or item
purchased. Expenditures and noncampaign disbursements must be listed on the report
alphabetically by vendor.
new text end

Sec. 11.

Minnesota Statutes 2016, section 10A.25, subdivision 2, is amended to read:

Subd. 2.

Amounts.

(a) In a segment of an election cycle, the principal campaign
committee of the candidate must not make campaign expenditures nor permit approved
expenditures to be made on behalf of the candidate that result in aggregate expenditures in
excess of the following:

(1) for governor and lieutenant governor, running together, $3,651,200 in the election
segment and $1,564,800 in the nonelection segment;

(2) for attorney general, $626,000 in the election segment and $208,700 in the nonelection
segment;

(3) for secretary of state and state auditor, separately, $417,300 in the election segment
and $104,400 in the nonelection segment;

(4) for state senator, $94,700 in the election segment and $31,600 in a nonelection
segment;

(5) for state representative, $63,100 in the election segment.

(b) In addition to the amount in paragraph (a), clause (1), a candidate for endorsement
for the office of lieutenant governor at the convention of a political party may make campaign
expenditures and approved expenditures of five percent of that amount to seek endorsement.

(c) If a special election cycle occurs during a general election cycle, expenditures by or
on behalf of a candidate in the special election do not count as expenditures by or on behalf
of the candidate in the general election.

(d) The expenditure limits in this subdivision for an office are increased by ten percent
for a candidate who has not previously held the same office, whose name has not previously
been on the primary or general election ballot for that office, and who has not in the past
ten years raised or spent more than $750 in a run for any other office whose territory now
includes a population that is more than one-third of the population in the territory of the
new office. new text begin Candidates who qualify for first-time candidate status receive a ten percent
increase in the campaign expenditure limit in all segments of the applicable election cycle.
new text end In the case of a legislative candidate, the office is that of a member of the house of
representatives or senate without regard to any specific district.

Sec. 12.

Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
read:

new text begin Subd. 16a. new text end

new text begin Return of contributions after merger of governor and lieutenant governor
funds. new text end

new text begin Funds transferred to the joint committee for candidates for governor and lieutenant
governor that result in aggregate contributions in excess of the applicable limits may be
returned to the contributor within 90 days of the transfer of funds to the joint committee.
new text end

Sec. 13.

Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
read:

new text begin Subd. 16b. new text end

new text begin Special election contribution limits. new text end

new text begin Election segment contribution limits
set forth in this section apply to a special election cycle.
new text end

Sec. 14.

Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
read:

new text begin Subd. 16c. new text end

new text begin Contribution limits apply independently. new text end

new text begin Contribution limits apply
independently for election segments, nonelection segments, and special election cycles.
new text end

Sec. 15.

Minnesota Statutes 2016, section 10A.31, is amended by adding a subdivision to
read:

new text begin Subd. 7b. new text end

new text begin Failure to repay. new text end

new text begin A candidate who fails to repay money required by the
agreement cannot be paid additional public subsidy funds during the current or future election
cycles until the entirety of the unexpended funds and any associated collection fees are
either repaid to the board or discharged by court action.
new text end

Sec. 16.

Minnesota Statutes 2016, section 10A.323, is amended to read:

10A.323 AFFIDAVIT OF CONTRIBUTIONS.

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

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

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

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

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

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

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

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

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

(ii) any in-kind contribution; and

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

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

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

new text begin (c) A candidate or the candidate's treasurer must be able to electronically file the affidavit
required under this section in the same manner as other reports required by this chapter.
The board must not require the candidate or candidate's treasurer to notarize the affidavit
of contribution.
new text end

Sec. 17.

new text begin [206.95] VOTING EQUIPMENT GRANT ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Voting equipment grant account. new text end

new text begin A voting equipment grant account is
established in the special revenue fund. Funds in the account are appropriated to the secretary
of state to provide grants to political subdivisions as authorized by this section. Funds in
the account are available until expended.
new text end

new text begin Subd. 2. new text end

new text begin Authorized equipment. new text end

new text begin A political subdivision may apply to receive a grant
under this section for the purchase or lease of the following:
new text end

new text begin (1) an electronic voting system, or any individual components of an electronic voting
system as provided in section 206.56, subdivision 8;
new text end

new text begin (2) assistive voting technology;
new text end

new text begin (3) an electronic roster system meeting the technology requirements of section 201.225,
subdivision 2; and
new text end

new text begin (4) any other equipment or technology approved by the secretary of state for use in
conducting a state or local election in Minnesota consistent with the requirements of law.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) The secretary of state may make a grant from the account to
a political subdivision only after receiving an application from the political subdivision.
The application must contain the following information:
new text end

new text begin (1) the date the application is submitted;
new text end

new text begin (2) the name of the political subdivision;
new text end

new text begin (3) the name and title of the individual who prepared the application;
new text end

new text begin (4) the type of voting system currently used in each precinct in the political subdivision;
new text end

new text begin (5) the date the system currently used was acquired and at what cost;
new text end

new text begin (6) the total number of registered voters, as of the date of the application, in each precinct
in the political subdivision;
new text end

new text begin (7) the total amount of the grant requested;
new text end

new text begin (8) the total amount and source of the political subdivision's money to be used to match
a grant from the account;
new text end

new text begin (9) the type of voting system to be acquired with the grant money and whether the voting
system will permit individuals with disabilities to cast a secret ballot;
new text end

new text begin (10) the proposed schedule for purchasing and implementing the new voting system and
the precincts in which the new voting system would be used;
new text end

new text begin (11) whether the political subdivision has previously applied for a grant from the account
and the disposition of that application;
new text end

new text begin (12) a certified statement by the political subdivision that the grant will be used only to
purchase authorized equipment under subdivision 2 of this section and that the political
subdivision has insufficient resources to purchase the voting system without obtaining a
grant from the account; and
new text end

new text begin (13) any other information required by the secretary of state.
new text end

new text begin (b) The secretary of state must establish a deadline for receipt of grant applications, a
procedure for awarding and distributing grants, and a process for verifying the proper use
of the grants after distribution.
new text end

new text begin Subd. 4. new text end

new text begin Amount of grant. new text end

new text begin A political subdivision is eligible to receive a grant of no
more than 75 percent of the total cost of electronic roster equipment and 50 percent of the
total cost of all other equipment or technology authorized for a grant under subdivision 2.
In evaluating the application, the secretary of state shall consider only the information set
forth in the application and is not subject to chapter 14. If the secretary of state determines
that the application has been fully and properly completed, and that there is a sufficient
balance in the account to fund the grant, either in whole or in part, the secretary of state
may approve the application.
new text end

new text begin Subd. 5. new text end

new text begin Report to legislature. new text end

new text begin No later than January 15, 2018, and annually thereafter
until the appropriations provided for grants under this section have been exhausted, the
secretary of state must submit a report to the legislative committees with jurisdiction over
elections policy on grants awarded by this section. The report must detail each grant awarded,
including the jurisdiction, the amount of the grant, and the type of equipment purchased.
new text end

Sec. 18. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2016, section 204B.48, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 4501.0300, subpart 3; 4501.0500, subpart 2; 4503.0200,
subpart 6; 4503.0300, subpart 4; 4503.0400, subpart 1; 4503.0500, subparts 5 and 8;
4503.0700, subparts 2 and 3; 4503.1300, subpart 5; 4503.1400, subparts 8 and 9; 4503.1450,
subparts 1 and 3; 4503.1600; 4503.1700; 4503.1800; 4505.0100, subpart 3; 4505.0900,
subparts 2, 3, 4, 5, 6, and 7; 4511.0500, subpart 2; 4512.0100, subparts 2, 4, and 5; and
4525.0210, subpart 1, new text end new text begin are repealed.
new text end

ARTICLE 4

MILITARY AFFAIRS AND VETERANS AFFAIRS

Section 1.

Minnesota Statutes 2016, section 190.19, subdivision 2, is amended to read:

Subd. 2.

Uses.

(a) Money appropriated from the Minnesota "Support Our Troops" account
to the Department of Military Affairs may be used for:

(1) grants directly to eligible individuals;

(2) grants to one or more eligible foundations for the purpose of making grants to eligible
individuals, as provided in this section;

(3) veterans' services; or

(4) grants to family readiness groups chartered by the adjutant general.

(b) As used in paragraph (a), the term "eligible individual" includes any person who is:

(1) a member new text begin in good standing new text end of the Minnesota National Guard or a reserve unit based
in Minnesota deleted text begin who has been called to active service as defined in section 190.05, subdivision
5 deleted text end ;

(2) a Minnesota resident who is a member of a military reserve unit not based in
Minnesota, if the member is called to active service as defined in section 190.05, subdivision
5;

(3) any other Minnesota resident performing active service for any branch of the military
of the United States;

(4) a person who new text begin honorably new text end served in one of the capacities listed in clause (1), (2), or
(3) who has current financial needs deleted text begin directly related to that service deleted text end ; and

(5) a member of the immediate family of an individual identified in clause (1), (2), (3),
or (4). For purposes of this clause, "immediate family" means the individual's spouse and
minor children and, if they are dependents of the member of the military, the member's
parents, grandparents, siblings, stepchildren, and adult children.

(c) As used in paragraph (a), the term "eligible foundation" includes any organization
that:

(1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code;

(2) has articles of incorporation under chapter 317A specifying the purpose of the
organization as including the provision of financial assistance to members of the Minnesota
National Guard and other United States armed forces reserves and their families and
survivors; and

(3) agrees in writing to distribute any grant money received from the adjutant general
under this section to eligible individuals as defined in this section and in accordance with
any written policies and rules the adjutant general may impose as conditions of the grant to
the foundation.

(d) The maximum grant awarded to an eligible individual under paragraph (a) in a
calendar year with funds from the Minnesota "Support Our Troops" account, either through
an eligible institution or directly from the adjutant general, may not exceed deleted text begin $2,000 deleted text end new text begin $4,000 new text end .

Sec. 2.

Minnesota Statutes 2016, section 190.19, subdivision 2a, is amended to read:

Subd. 2a.

Uses; veterans.

(a) Money appropriated to the Department of Veterans Affairs
from the Minnesota "Support Our Troops" account may be used for:

(1) grants to veterans service organizations;

(2) outreach to underserved veterans;

(3) providing services and programs for veterans and their families;

(4) transfers to the vehicle services account for Gold Star license plates under section
168.1253;

(5) grants of up to $100,000 to any organization approved by the commissioner of
veterans affairs for the purpose of supporting and improving the lives of veterans and their
families; deleted text begin and
deleted text end

(6) grants to an eligible foundation deleted text begin . deleted text end new text begin ; and
new text end

new text begin (7) the agency's uncompensated burial costs for eligible dependents to whom the
commissioner grants a no-fee or reduced-fee burial in the state's veteran cemeteries pursuant
to section 197.236, subdivision 9, paragraph (b).
new text end

(b) For purposes of this subdivision, "eligible foundation" includes any organization
that:

(1) is a tax-exempt organization under section 501(c) of the Internal Revenue Code; and

(2) is a nonprofit corporation under chapter 317A and the organization's articles of
incorporation specify that a purpose of the organization includes: (i) providing assistance
to veterans and their families; or (ii) enhancing the lives of veterans and their families.

Sec. 3.

Minnesota Statutes 2016, section 196.05, subdivision 1, is amended to read:

Subdivision 1.

General duties.

The commissioner shall:

(1) act as the agent of a resident of the state having a claim against the United States for
benefits arising out of or by reason of service in the armed forces and prosecute the claim
without charge;

(2) act as custodian of veterans' bonus records;

(3) administer the laws relating to the providing of bronze flag holders at veterans' graves
for memorial purposes;

(4) administer the laws relating to recreational or rest camps for veterans so far as
applicable to state agencies;

(5) administer the state soldiers' assistance fund and veterans' relief fund and other funds
appropriated for the payment of bonuses or other benefits to veterans or for the rehabilitation
of veterans;

(6) cooperate with national, state, county, municipal, and private social agencies in
securing to veterans and their dependents the benefits provided by national, state, and county
laws, municipal ordinances, or public and private social agencies;

(7) provide necessary assistance where other adequate aid is not available to the dependent
family of a veteran while the veteran is hospitalized and after the veteran is released for as
long a period as is necessary as determined by the commissioner;

(8) cooperate with United States governmental agencies providing compensation,
pensions, insurance, or other benefits provided by federal law, by supplementing the benefits
prescribed therein, when conditions in an individual case make it necessary;

(9) assist dependent family members of military personnel who are called from reserve
status to extended federal active duty during a time of war or national emergency through
the state soldiers' assistance fund provided by section 197.03;

(10) exercise other powers as may be authorized and necessary to carry out the provisions
of this chapter and chapter 197, consistent with that chapter; deleted text begin and
deleted text end

(11) provide information, referral, and counseling services to those veterans who may
have suffered adverse health conditions as a result of possible exposure to chemical agents deleted text begin . deleted text end new text begin ;
and
new text end

new text begin (12) in coordination with the Minnesota Association of County Veterans Service Officers,
develop a written disclosure statement for use by private providers of veterans benefits
services as required under section 197.6091. At a minimum, the written disclosure statement
shall include a signature line, contact information for the department, and a statement that
veterans benefits services are offered at no cost by federally chartered veterans service
organizations and by county veterans service officers.
new text end

Sec. 4.

Minnesota Statutes 2016, section 197.236, subdivision 9, is amended to read:

Subd. 9.

Burial fees.

new text begin (a) new text end The commissioner of veterans affairs shall establish a fee
schedule, which may be adjusted from time to time, for the interment of eligible spouses
and dependent children. The fees shall cover as nearly as practicable the actual costs of
interment, excluding the value of the plot.

new text begin (b) Upon application, new text end the commissioner may waive new text begin or reduce new text end the new text begin burial new text end fee deleted text begin in the case
of deleted text end new text begin for new text end an indigent eligible person. new text begin The commissioner shall develop a policy, eligibility
standards, and application form for requests to waive or reduce the burial fee to indigent
eligible applicants.
new text end

new text begin (c) new text end No plot or interment fees may be charged for the burial of service members who die
on active duty or eligible veterans, as defined in United States Code, title 38, section 101,
paragraph (2).

Sec. 5.

new text begin [197.6091] VETERANS BENEFITS SERVICES; DISCLOSURE
REQUIREMENTS.
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)(1) "Advertising" or "advertisement" means any of the following:
new text end

new text begin (i) any written or printed communication made for the purpose of soliciting business for
veterans benefits appeal services, including but not limited to a brochure, letter, pamphlet,
newspaper, telephone listing, periodical, or other writing;
new text end

new text begin (ii) any directory listing caused or permitted by a person and made available by that
person indicating that veterans benefits appeal services are being offered; or
new text end

new text begin (iii) any radio, television, computer network, or similar airwave or electronic transmission
that solicits business for or promotes a person offering veterans benefits appeal services.
new text end

new text begin (2) "Advertising" or "advertisement" does not include any of the following:
new text end

new text begin (i) any printing or writing used on buildings, uniforms, or badges, where the purpose of
the writing is for identification; or
new text end

new text begin (ii) any printing or writing in a memorandum or other communication used in the ordinary
course of business where the sole purpose of the writing is other than soliciting business
for veterans benefits appeal services.
new text end

new text begin (c) "Veterans benefits appeal services" means services that a veteran might reasonably
require in order to appeal a denial of federal or state veterans benefits, including but not
limited to denials of disability, limited income, home loan, insurance, education and training,
burial and memorial, and dependent and survivor benefits.
new text end

new text begin (d) "Veterans benefits services" means services that a veteran or a family member of a
veteran might reasonably use in order to obtain federal, state, or county veterans benefits.
new text end

new text begin (e) "Written disclosure statement" means the written disclosure statement developed by
the commissioner of veterans affairs pursuant to section 196.05, subdivision 1.
new text end

new text begin Subd. 2. new text end

new text begin Advertising disclosure requirements. new text end

new text begin A person advertising veterans benefits
appeal services must conspicuously disclose in the advertisement, in similar type size or
voice-over, that veterans benefits appeal services are also offered at no cost by county
veterans service officers under sections 197.603 and 197.604.
new text end

new text begin Subd. 3. new text end

new text begin Veterans benefits services disclosure requirements. new text end

new text begin A person who provides
veterans benefits services in exchange for compensation shall provide a written disclosure
statement to each client or prospective client. Before a person enters into an agreement to
provide veterans benefits services or accepts money or any other thing of value for the
provision of veterans benefits services, the person must obtain the signature of the client
on a written disclosure statement containing an attestation by the client that the client has
read and understands the written disclosure statement.
new text end

new text begin Subd. 4. new text end

new text begin Violations; penalties. new text end

new text begin A person who fails to comply with this section is subject
to a civil penalty not to exceed $1,000 for each violation. Civil penalties shall be assessed
by the district court in an action initiated by the attorney general. For the purposes of
computing the amount of each civil penalty, each day of a continuing violation constitutes
a separate violation. Additionally, the attorney general may accept a civil penalty as
determined by the attorney general in settlement of an investigation of a violation of this
section regardless of whether an action has been filed under this section. Any civil penalty
recovered shall be deposited in the Support Our Troops account established under section
190.19.
new text end

new text begin Subd. 5. new text end

new text begin Nonapplicability. new text end

new text begin This section does not apply to the owner or personnel of any
medium in which an advertisement appears or through which an advertisement is
disseminated.
new text end

Sec. 6.

Minnesota Statutes 2016, section 197.791, subdivision 2, is amended to read:

Subd. 2.

Program established.

The Minnesota GI Bill program is established to provide
postsecondary educational assistance new text begin , apprenticeship and on-the-job training benefits, and
other professional and educational benefits new text end to eligible Minnesota veterans and to the children
and spouses of deceased and severely disabled Minnesota veterans.

The commissioner, in cooperation with eligible postsecondary educational institutions,
shall administer the program for the purpose of providing postsecondary educational
assistance to eligible persons in accordance with this section. Each public postsecondary
educational institution in the state must participate in the program and each private
postsecondary educational institution in the state is encouraged to participate in the program.
Any participating private institution may suspend or terminate its participation in the program
at the end of any semester or other academic term.

Sec. 7.

Minnesota Statutes 2016, section 197.791, subdivision 3, is amended to read:

Subd. 3.

Duties; responsibilities.

(a) The commissioner shall establish policies and
procedures including, but not limited to, procedures for student application record keeping,
information sharing, payment of educational assistance benefits new text begin under subdivision 5, payment
of apprenticeship or on-the-job training benefits under subdivision 5a, payment of other
educational or professional benefits under subdivision 5 new text end , and other procedures the
commissioner considers appropriate and necessary for effective and efficient administration
of the program established in this section.

(b) The commissioner may delegate part or all of the administrative procedures for the
program to responsible representatives of participating eligible institutions. The commissioner
may execute an interagency agreement with the Minnesota Office of Higher Education for
services the commissioner determines necessary to administer the program.

Sec. 8.

Minnesota Statutes 2016, section 197.791, subdivision 4, is amended to read:

Subd. 4.

Eligibility.

(a) A person is eligible for educational assistance under deleted text begin this section deleted text end new text begin
subdivisions 5 and 5a new text end if:

(1) the person is:

(i) a veteran who is serving or has served honorably in any branch or unit of the United
States armed forces at any time;

(ii) a nonveteran who has served honorably for a total of five years or more cumulatively
as a member of the Minnesota National Guard or any other active or reserve component of
the United States armed forces, and any part of that service occurred on or after September
11, 2001;

(iii) the surviving spouse or child of a person who has served in the military and who
has died as a direct result of that military service, only if the surviving spouse or child is
eligible to receive federal education benefits under United States Code, title 38, chapter 33,
as amended, or United States Code, title 38, chapter 35, as amended; or

(iv) the spouse or child of a person who has served in the military at any time and who
has a total and permanent service-connected disability as rated by the United States Veterans
Administration, only if the spouse or child is eligible to receive federal education benefits
under United States Code, title 38, chapter 33, as amended, or United States Code, title 38,
chapter 35, as amended; and

(2) the person receiving the educational assistance is a Minnesota resident, as defined
in section 136A.101, subdivision 8; and

(3) the person receiving the educational assistance:

(i) is an undergraduate or graduate student at an eligible institution;

(ii) is maintaining satisfactory academic progress as defined by the institution for students
participating in federal Title IV programs;

(iii) is enrolled in an education program leading to a certificate, diploma, or degree at
an eligible institution;

(iv) has applied for educational assistance under this section prior to the end of the
academic term for which the assistance is being requested;

(v) is in compliance with child support payment requirements under section 136A.121,
subdivision 2, clause (5); and

(vi) has completed the Free Application for Federal Student Aid (FAFSA).

(b) A person's eligibility terminates when the person becomes eligible for benefits under
section 135A.52.

(c) To determine eligibility, the commissioner may require official documentation,
including the person's federal form DD-214 or other official military discharge papers;
correspondence from the United States Veterans Administration; birth certificate; marriage
certificate; proof of enrollment at an eligible institution; signed affidavits; proof of residency;
proof of identity; or any other official documentation the commissioner considers necessary
to determine eligibility.

(d) The commissioner may deny eligibility or terminate benefits under this section to
any person who has not provided sufficient documentation to determine eligibility for the
program. An applicant may appeal the commissioner's eligibility determination or termination
of benefits in writing to the commissioner at any time. The commissioner must rule on any
application or appeal within 30 days of receipt of all documentation that the commissioner
requires. The decision of the commissioner regarding an appeal is final. However, an
applicant whose appeal of an eligibility determination has been rejected by the commissioner
may submit an additional appeal of that determination in writing to the commissioner at
any time that the applicant is able to provide substantively significant additional information
regarding the applicant's eligibility for the program. An approval of an applicant's eligibility
by the commissioner following an appeal by the applicant is not retroactively effective for
more than one year or the semester of the person's original application, whichever is later.

(e) Upon receiving an application with insufficient documentation to determine eligibility,
the commissioner must notify the applicant within 30 days of receipt of the application that
the application is being suspended pending receipt by the commissioner of sufficient
documentation from the applicant to determine eligibility.

Sec. 9.

Minnesota Statutes 2016, section 197.791, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Benefit deleted text end new text begin Educational assistance new text end amount.

(a) On approval by the commissioner
of eligibility for the program, the applicant shall be awarded, on a funds-available basis,
the educational assistance under the program for use at any time according to program rules
at any eligible institution.

(b) The amount of educational assistance in any semester or term for an eligible person
must be determined by subtracting from the eligible person's cost of attendance the amount
the person received or was eligible to receive in that semester or term from:

(1) the federal Pell Grant;

(2) the state grant program under section 136A.121; and

(3) any federal military or veterans educational benefits including but not limited to the
Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, vocational
rehabilitation benefits, and any other federal benefits associated with the person's status as
a veteran, except veterans disability payments from the United States Veterans Administration
and payments made under the Veterans Retraining Assistance Program (VRAP).

(c) The amount of educational assistance for any eligible person who is a full-time
student must not exceed the following:

deleted text begin (1) $1,000 per semester or term of enrollment;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end $3,000 per state fiscal year; and

deleted text begin (3) deleted text end new text begin (2) new text end $10,000 in a lifetime.

new text begin (d) A person eligible under this subdivision may use the benefit amounts for the following
purposes:
new text end

new text begin (1) licensing or certification tests, the successful completion of which demonstrates an
individual's possession of the knowledge or skill required to enter into, maintain, or advance
in employment in a predetermined and identified vocation or profession, provided that the
tests and the licensing or credentialing organizations or entities that offer the tests are
approved by the commissioner;
new text end

new text begin (2) tests for admission to institutions of higher learning or graduate schools;
new text end

new text begin (3) national tests providing an opportunity for course credit at institutions of higher
learning;
new text end

new text begin (4) a preparatory course for a test that is required or used for admission to an institution
of higher education or a graduate program; and
new text end

new text begin (5) any fee associated with the pursuit of a professional or educational objective specified
in clauses (1) to (4).
new text end

new text begin (e) If an eligible person receives benefits under subdivision 5, the eligible person's
aggregate benefits under this subdivision and subdivision 5 must not exceed $10,000 in the
eligible person's lifetime.
new text end

new text begin (f) If an eligible person receives benefits under subdivision 5a, the eligible person's
aggregate benefits under this subdivision and subdivision 5a must not exceed $10,000 in
the eligible person's lifetime.
new text end

For a part-time student, the amount of educational assistance must not exceed $500 per
semester or term of enrollment. For the purpose of this paragraph, a part-time undergraduate
student is a student taking fewer than 12 credits or the equivalent for a semester or term of
enrollment and a part-time graduate student is a student considered part time by the eligible
institution the graduate student is attending. The minimum award for undergraduate and
graduate students is $50 per term.

Sec. 10.

Minnesota Statutes 2016, section 197.791, subdivision 5a, is amended to read:

Subd. 5a.

Apprenticeship and on-the-job training.

(a) The commissioner, in
consultation with the commissioners of employment and economic development and labor
and industry, shall develop and implement an apprenticeship and on-the-job training program
to administer a portion of the Minnesota GI Bill program to pay benefit amounts to eligible
deleted text begin applicants deleted text end new text begin persons new text end , as provided in this subdivision.

(b) An "eligible employer" means an employer operating a qualifying apprenticeship or
on-the-job training program that has been approved by the commissioner.

(c) A person is eligible for apprenticeship and on-the-job training assistance under this
subdivision if the person meets the criteria established under subdivision 4, deleted text begin paragraphs deleted text end new text begin
paragraph new text end (a) deleted text begin , clause (1), and (c) to (e) deleted text end . new text begin The commissioner may determine eligibility as
provided in subdivision 4, paragraph (c), and may deny or terminate benefits as prescribed
under subdivision 4, paragraphs (d) and (e). new text end The amount of assistance paid to or on behalf
of an eligible individual under this subdivision must not exceed the following:

(1) deleted text begin $2,000 deleted text end new text begin $3,000 new text end per fiscal year for apprenticeship expenses;

(2) deleted text begin $2,000 deleted text end new text begin $3,000 new text end per fiscal year for on-the-job training;

(3) $1,000 for a job placement credit payable to an eligible employer upon hiring new text begin and
completion of six consecutive months' employment of new text end a person receiving assistance under
this subdivision; and

(4) $1,000 for a job placement credit payable to an eligible employer after a person
receiving assistance under this subdivision has been employed by the eligible employer for
at least 12 consecutive months as a full-time employee.

No more than deleted text begin $3,000 deleted text end new text begin $5,000 new text end in aggregate benefits under this paragraph may be paid to or
on behalf of an individual in one fiscal year, and not more than deleted text begin $9,000 deleted text end new text begin $10,000 new text end in aggregate
benefits under this paragraph may be paid to or on behalf of an individual over any period
of time.

(d) Assistance for apprenticeship expenses and on-the-job training is available for
qualifying programs, which must, at a minimum, meet the following criteria:

(1) the training must be with an eligible employer;

(2) the training must be documented and reported;

(3) the training must reasonably be expected to lead to an entry-level position; and

(4) the position must require at least six months of training to become fully trained.

ARTICLE 5

LIQUOR

Section 1.

Minnesota Statutes 2016, section 85.0505, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Fort Ridgely State Park. new text end

new text begin The commissioner of public safety, with the approval
of the commissioner of natural resources, may issue to a concessionaire, lessee, or person
holding a contract with the Department of Natural Resources an on-sale license for the sale
of intoxicating liquor at the Fort Ridgely State Park golf course. The annual fee for the
license issued pursuant to this subdivision shall be set by the commissioner of public safety
at an amount comparable to the fee charged by the surrounding counties for a similar license.
All provisions of chapter 340A not inconsistent with this subdivision shall apply to the sale
of intoxicating liquor at the Fort Ridgely State Park golf course.
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. 2.

Minnesota Statutes 2016, section 340A.22, subdivision 1, is amended to read:

Subdivision 1.

Activities.

(a) A microdistillery licensed under this chapter may provide
on its premises samples of distilled spirits manufactured on its premises, in an amount not
to exceed 15 milliliters per variety per person. No more than 45 milliliters may be sampled
under this paragraph by any person on any day.

(b) A microdistillery can sell cocktails to the public, pursuant to subdivision 2.

new text begin (c) A microdistillery may not operate a cocktail room under subdivision 2 or conduct
sales at off-sale under subdivision 4 unless at least 50 percent of the annual production of
the licensee is processed and distilled on premises.
new text end

new text begin (d) Distilled spirits produced or in production prior to July 1, 2017, are not counted as
part of the calculations under paragraph (c).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 340A.22, subdivision 2, is amended to read:

Subd. 2.

Cocktail room license.

(a) A municipality, including a city with a municipal
liquor store, may issue the holder of a microdistillery license under this chapter a
microdistillery cocktail room license. A microdistillery cocktail room license authorizes
on-sale of distilled liquor produced by the distiller for consumption on the premises of or
adjacent to one distillery location owned by the distiller. new text begin Notwithstanding section 340A.504,
subdivision 3, a cocktail room may be open and may conduct on-sale business on Sundays
if authorized by the municipality. new text end Nothing in this subdivision precludes the holder of a
microdistillery cocktail room license from also holding a license to operate a restaurant at
the distillery. Section 340A.409 shall apply to a license issued under this subdivision. All
provisions of this chapter that apply to a retail liquor license shall apply to a license issued
under this subdivision unless the provision is explicitly inconsistent with this subdivision.

(b) A distiller may only have one cocktail room license under this subdivision, and may
not have an ownership interest in a distillery licensed under section 340A.301, subdivision
6, clause (a).

(c) The municipality shall impose a licensing fee on a distiller holding a microdistillery
cocktail room license under this subdivision, subject to limitations applicable to license fees
under section 340A.408, subdivision 2, paragraph (a).

(d) A municipality shall, within ten days of the issuance of a license under this
subdivision, inform the commissioner of the licensee's name and address and trade name,
and the effective date and expiration date of the license. The municipality shall also inform
the commissioner of a license transfer, cancellation, suspension, or revocation during the
license period.

(e) No single entity may hold both a cocktail room and taproom license, and a cocktail
room and taproom may not be colocated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 340A.24, subdivision 3, is amended to read:

Subd. 3.

Total retail sales.

A brew pub's total retail sales at on- or off-sale under this
section may not exceed 3,500 barrels per year, provided that off-sales may not total more
than deleted text begin 500 deleted text end new text begin 750 new text end barrels.

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 2016, section 340A.28, subdivision 1, is amended to read:

Subdivision 1.

License; limitations.

A brewer licensed under section 340A.301,
subdivision 6, clause (c), (i), or (j), may be issued a license by a municipality for off-sale
of malt liquor at its licensed premises that has been produced and packaged by the brewer.
The license must be approved by the commissioner. A brewer may only have one license
under this subdivision. The amount of malt liquor sold at off-sale may not exceed deleted text begin 500 deleted text end new text begin 750
new text end barrels annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at
exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt liquor
sold off-sale must be removed from the premises before the applicable off-sale closing time
at exclusive liquor stores, except that malt liquor in growlers only may be sold at off-sale
on Sundays. Sunday sales must be approved by the licensing jurisdiction and hours may be
established by those jurisdictions. Packaging of malt liquor for off-sale under this subdivision
must comply with section 340A.285.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 340A.301, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin 3.2 percent malt liquor; label. new text end

new text begin 3.2 percent malt liquor, as defined under
section 340A.101, subdivision 19, may be sold with a label that states "MAX 3.2% ALC/WT"
or equivalent, on the side of the can or bottle, and does not require a similar disclosure on
the can top or bottom. The commissioner shall establish standards to implement this
requirement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies to all cans or
bottles sold after that date.
new text end

Sec. 7.

Minnesota Statutes 2016, section 340A.315, subdivision 7, is amended to read:

Subd. 7.

Distilled spirits permitted.

Farm wineries licensed under this section are
permitted to manufacture distilled spirits as defined under section 340A.101, subdivision
9, which may exceed 25 percent alcohol by volume, made from Minnesota-produced or
Minnesota-grown grapes, grape juice, other fruit bases, or honey. The following conditions
pertain:

(1) no farm winery or firm owning multiple farm wineries may manufacture more than
5,000 gallons of distilled spirits in a given year, and this 5,000 gallon limit is part of the
50,000 gallon limit found in subdivision 2;

(2) new text begin a farm winery may not sell at on-sale, off-sale, or wholesale, a distilled spirit that
does not qualify as a Minnesota spirit. For purposes of this section, to qualify as a Minnesota
spirit, 50 percent of the distilled spirit must be processed and distilled on premises. Distilled
spirits produced or in production prior to July 1, 2017, are not counted as part of the
calculations under this clause;
new text end

new text begin (3) new text end farm wineries must pay an additional annual fee of $50 to the commissioner before
beginning production of distilled spirits; and

deleted text begin (3) deleted text end new text begin (4) new text end farm wineries may not sell or produce distilled spirits for direct sale to
manufacturers licensed under section 340A.301, subdivision 6, paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 8.

new text begin [340A.425] SERVICE AT CAPITOL.
new text end

new text begin Notwithstanding section 340A.412, subdivision 4, paragraph (a), clause (2), the city of
St. Paul may issue an on-sale wine and malt liquor license for the premises known as the
State Capitol, including the Capitol cafeteria. The commissioner of administration must
specify those areas where service is being requested. The Department of Administration
shall enter into an agreement with a food service vendor or another vendor on all matters
related to the sale of wine and malt liquor in the Capitol. Section 16B.275 does not apply
to the sale of wine and malt liquor in the Capitol and all fees charged or profits earned by
the Department of Administration from the sale of wine and malt liquor in the Capitol must
be deposited in a capitol revenues account in the special revenue fund and are appropriated
to the commissioner for capitol preservation and programming. The Capitol must sell wine
and malt liquor that are made in Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Saint Paul City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 9.

Minnesota Statutes 2016, section 340A.504, subdivision 6, is amended to read:

Subd. 6.

Municipalities may limit hours.

A municipality may further limit the new text begin days or
new text end hours of on and off sales of alcoholic beverages, provided that further restricted on-sale
hours for intoxicating liquor must apply equally to on-sale hours of 3.2 percent malt liquor.
A city may not permit the sale of alcoholic beverages during hours when the sale is prohibited
by this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Laws 1999, chapter 202, section 13, as amended by Laws 2013, chapter 42,
section 8, is amended to read:

Sec. 13. CITY OF ST. PAUL; LICENSES AUTHORIZED.

(a) The city of St. Paul may issue temporary intoxicating liquor licenses under Minnesota
Statutes, section 340A.404, subdivision 10, to Macalester college for the Macalester Scottish
fair, Springfest, and for the annual alumni reunion weekend without regard to the limitation
in Minnesota Statutes, section 340A.410, subdivision 10, paragraph (b).

(b) Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, the city of
St. Paul may issue a temporary on-sale intoxicating liquor license to Twin Cities in Motion,
or its successor organization, if any. The license may authorize deleted text begin only deleted text end the sale of intoxicating deleted text begin
malt liquor and 3.2 percent malt deleted text end liquor on the grounds of the state capitol on the day of the
Twin Cities Marathon. deleted text begin The intoxicating deleted text end new text begin Any new text end malt liquor and 3.2 percent malt liquor new text begin sold
new text end must be produced by a Minnesota brewery. All provisions of Minnesota Statutes, section
340A.404, subdivision 10, not inconsistent with this section, apply to the license authorized
by this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Saint Paul City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 11. new text begin SPECIAL LICENSE; COLD SPRING.
new text end

new text begin Notwithstanding any law or ordinance to the contrary, the city of Cold Spring may issue
an intoxicating malt liquor license to the Cold Spring Baseball Association for sales at Cold
Spring Baseball Park, located at 700 First Street South. The license may allow service and
consumption anywhere within the Baseball Park, at events hosted or scheduled by the
Association.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Cold Spring City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 12. new text begin FOOD HALL LICENSE; MINNEAPOLIS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 340A.101, subdivision 25, 340A.401, or
340A.410, subdivision 7, or any other law or ordinance to the contrary, the city of
Minneapolis may issue an on-sale intoxicating liquor license for a licensee serving as an
anchor tenant for a food hall to be located at 501 30th Avenue Southeast. The license may
allow service and consumption anywhere within the licensee establishment, and anywhere
within the larger food hall, provided that the larger premises is specified in the on-sale
license. Multiple independent food vendors will be able to utilize a common seating area
under the control of the liquor license holder to allow the public to purchase and consume
food from third parties while also consuming licensed beverages sold by the license holder.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the city of Minneapolis
and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 13. new text begin CITY OF MINNEAPOLIS; SPECIAL LICENSES.
new text end

new text begin The city of Minneapolis may issue an on-sale intoxicating liquor license to a restaurant
located at 4312 Upton Avenue South, notwithstanding any law or local ordinance or charter
provision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Minneapolis City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 14. new text begin SPECIAL EVENTS; CAPITOL.
new text end

new text begin Notwithstanding any law or ordinance to the contrary, the city of St. Paul may issue two
separate temporary liquor licenses for special events at the Minnesota Capitol, allowing
sale throughout the Capitol building and on the Capitol grounds, as specified by the
commissioner of administration. The first special event license shall be for events relating
to the ceremonial opening of the restored State Capitol in August 2017. The second special
event license shall be for events associated with the Super Bowl and the construction of an
ice castle in 2018. Licenses shall be for on-sale during all legal hours of service and shall
allow all service of wine, malt liquor, and distilled spirits. Service must be limited to wine,
malt liquor, and distilled spirits that are made in Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Saint Paul City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 15. new text begin NATIONAL FOOTBALL LEAGUE TRAINING SITE; ON-SALE
LICENSES.
new text end

new text begin Notwithstanding Minnesota Statutes, section 340A.404, subdivision 1, or any other law
or local ordinance to the contrary, the city of Eagan may issue an on-sale intoxicating liquor
license to the owner of a National Football League sports facility located on property in the
city of Eagan in Dakota County, legally described as Lot 1, Block 1, Viking Lakes, and to
any concessionaire operator or third-party vendor under contract with the owner. The license
authorizes the sale of intoxicating liquor to persons attending any and all events on Lots 1
and 2, Block 1, Viking Lakes, that are in conjunction with activities on Lot 1. The license
may be issued for a space that is not compact and contiguous, provided that the licensed
premises shall only be the space described in the approved license. The license authorizes
sales on all days of the week. All provisions of Minnesota Statutes, chapter 340A, not
inconsistent with this section, apply to the license under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Eagan City Council
and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 16. new text begin SPECIAL LICENSE; NEW HOPE.
new text end

new text begin Notwithstanding any law or ordinance to the contrary, the city of New Hope may issue
an on-sale intoxicating liquor license for the New Hope Village Golf Course that is located
at 8130 Bass Lake Road and is owned by the city. The provisions of Minnesota Statutes,
chapter 340A, not inconsistent with this section, apply to the license issued under this
section. The city of New Hope is deemed the licensee under this section, and the provisions
of Minnesota Statutes, sections 340A.603 and 340A.604, apply to the license as if the
establishment were a municipal liquor store.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the New Hope City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 17. new text begin SPECIAL LICENSE; SARTELL.
new text end

new text begin The city of Sartell may issue an on-sale intoxicating liquor license, an on-sale wine
license, or an on-sale malt liquor license for the city-owned facilities known as Sartell
Community Center, located at 850 19th Street South; Pinecone Central Park, located at
1105 Central Park Blvd; and Champion Field, located at 710 12th Street North,
notwithstanding any law, local ordinance, or charter provision. A license issued under this
section authorizes sales on all days of the week to persons attending events at these facilities.
The provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section,
apply to the licenses issued under this section. The city of Sartell is deemed the licensee
under this section, and the provisions of Minnesota Statutes, sections 340A.603 and
340A.604, apply to the licenses as if the facilities were a municipal liquor store.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Sartell City Council
and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 18. new text begin SPECIAL CLOSING TIMES; 2018 SUPER BOWL.
new text end

new text begin During the 2018 National Football League Super Bowl at U.S. Bank Stadium, licensing
jurisdictions that issue on-sale intoxicating liquor licenses under Minnesota Statutes, chapter
340A, may, at their discretion, issue special permits for service of alcohol through extended
hours lasting until 4:00 a.m. each day. This section is subject to the following conditions:
new text end

new text begin (1) only holders of an existing on-sale intoxicating liquor license or a 3.2 malt liquor
license are eligible for later closing hours;
new text end

new text begin (2) later closing hours apply only during the period from 12:00 p.m. on February 2,
2018, through 4:00 a.m. on February 5, 2018;
new text end

new text begin (3) local licensing jurisdictions issuing special permits to operate with extended hours
during the days listed in clause (2) may charge a fee up to but not to exceed $250 for a
permit. In the process of issuing a permit under this section, the licensing jurisdiction may
limit approval to specified geographic, zoning, or license classifications within its jurisdiction;
and
new text end

new text begin (4) this section expires at 4:01 a.m. on February 5, 2018.
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. new text begin REPEALER.
new text end

new text begin Laws 2001, chapter 193, section 10, as amended by Laws 2013, chapter 137, article 4,
section 6; and Laws 2013, chapter 137, article 4, section 6, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 171-S0001-1

6.581 STATE AUDITOR ENTERPRISE FUND.

Subdivision 1.

State auditor enterprise fund.

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

204B.48 VOTING EQUIPMENT GRANT ACCOUNT.

Subdivision 1.

Account created.

A voting equipment grant account is created in the state treasury to provide grants to political subdivisions to purchase precinct based optical scan ballot tabulation equipment. The equipment must permit the voter to verify and correct any errors on the ballot, including both undervotes and overvotes. Any grants made by the federal government to the state to improve election administration or equipment must be credited to the account.

Subd. 2.

Application.

The commissioner of administration may make a grant from the account to a political subdivision only after receiving an application from the political subdivision and a recommendation from the secretary of state concerning the application. The application must contain the following information:

(1) the date the application is submitted;

(2) the name of the political subdivision;

(3) the name and title of the individual who prepared the application;

(4) the type of voting system currently used in each precinct in the political subdivision;

(5) if the current system is an optical scan system, the date the system was acquired and at what cost;

(6) the total number of registered voters, as of the date of the application, in each precinct in the political subdivision;

(7) the total amount of the grant requested;

(8) the total amount and source of the political subdivision's money to be used to match a grant from the account;

(9) the type of voting system to be acquired with the grant money and whether the voting system will permit individuals with disabilities to cast a secret ballot;

(10) the proposed schedule for purchasing and implementing the new voting system and the precincts in which the new voting system would be used;

(11) the proposed schedule for training election administrators and election judges to operate the new voting system;

(12) a proposed plan to educate voters, the media, and the general public concerning the new voting system;

(13) the names and contact information for the individuals and offices of the political subdivision responsible for communications and reporting to the commissioner of administration regarding the administration and implementation of the grant by the political subdivision, authorizing the purchase of voting systems, and implementing the training and education plan for the voting system;

(14) whether the political subdivision has previously applied for a grant from the account and the disposition of that application;

(15) a certified statement by the political subdivision that the grant will be used only to purchase precinct based optical scan ballot tabulation equipment, that the political subdivision will provide a dollar-for-dollar match that will not come from state or federal money, and that the political subdivision has insufficient resources to purchase the voting system without obtaining a grant from the account.

The commissioner of administration must forward a copy of the application to the secretary of state.

Subd. 3.

Evaluation and approval.

In evaluating the application, the commissioner of administration may consider only the information set forth in the application and is not subject to chapter 14. If the commissioner of administration determines that the application has been fully and properly completed, and that there is a sufficient balance in the account to fund the grant, either in whole or in part, the commissioner, after receiving the recommendation of the secretary of state, may approve the application.

Subd. 4.

Payment.

The commissioner of administration may then pay the grant to the political subdivision after certifying that:

(1) the grant will be used only to purchase the kind of ballot tabulation equipment prescribed by subdivision 1, which may include equipment that makes it possible for individuals with disabilities to cast a secret ballot;

(2) the political subdivision to receive the grant has insufficient resources available to purchase the equipment; and

(3) the recipient of the grant will provide a dollar-for-dollar match, which may not come from state or federal money.

349A.08 LOTTERY PRIZES.

Subd. 3.

Prizes won by persons under age 18.

The following provisions govern the payment of a lottery prize to a person under age 18:

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

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

Repealed Minnesota Session Laws: 171-S0001-1

Laws 2001, chapter 193, section 10, as amended by Laws 2013, chapter 137, article 4, section 6; as amended by Laws 2017, First Special Session chapter 4, article 5, section 19

Sec. 6.

Laws 2001, chapter 193, section 10, is amended to read:

Sec. 10. CAPITOL CAFETERIA; WINE AND BEER LICENSE.

Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, paragraph (a), clause (2), the city of St. Paul may issue an on-sale wine and malt liquor license to the Capitol cafeteria, also called the Rathskeller Café. The commissioner of administration must enter into an agreement with the food service vendor or another vendor on all matters related to the sale of wine and malt liquor in the Capitol. Minnesota Statutes, section 16B.275, does not apply to the sale of wine and malt liquor in the Capitol cafeteria and all profits earned by the Department of Administration from the sale of wine and malt liquor in the Capitol must be deposited in the arts and cultural heritage fund. The Capitol cafeteria must sell wine and malt liquor that are made in Minnesota.

EFFECTIVE DATE.

This section is effective the day after the governing body of St. Paul and its chief clerical officer timely complete compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

Laws 2013, chapter 137, article 4, section 6 by Laws 2017, First Special Session chapter 4, article 5, section 19

Sec. 6.

Laws 2001, chapter 193, section 10, is amended to read:

Sec. 10. CAPITOL CAFETERIA; WINE AND BEER LICENSE.

Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, paragraph (a), clause (2), the city of St. Paul may issue an on-sale wine and malt liquor license to the Capitol cafeteria, also called the Rathskeller Café. The commissioner of administration must enter into an agreement with the food service vendor or another vendor on all matters related to the sale of wine and malt liquor in the Capitol. Minnesota Statutes, section 16B.275, does not apply to the sale of wine and malt liquor in the Capitol cafeteria and all profits earned by the Department of Administration from the sale of wine and malt liquor in the Capitol must be deposited in the arts and cultural heritage fund. The Capitol cafeteria must sell wine and malt liquor that are made in Minnesota.

EFFECTIVE DATE.

This section is effective the day after the governing body of St. Paul and its chief clerical officer timely complete compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

Repealed Minnesota Rule: 171-S0001-1

4501.0300 CERTIFICATION, SIGNATURES, AND NOTARIZATION.

Subp. 3.

Notarization.

The only documents that must be notarized are affidavits of contributions filed pursuant to Minnesota Statutes, section 10A.323, and sworn statements relating to independent expenditures filed pursuant to Minnesota Statutes, section 10A.20, subdivision 6a.

4501.0500 FILINGS, SUBMISSIONS, AND DISCLOSURES.

Subp. 2.

Filing by facsimile transmission or electronic filing system.

A document filed by facsimile transmission or electronic filing system has the same force and effect as filing an original paper document. Facsimile transmissions and the use of an electronic filing system are subject to items A to F.

A.

A facsimile transmission or electronic file received after the close of a business day is considered received at the beginning of the next business day.

B.

Use of an electronic filing system is optional. In order to provide a secure environment for the submission of electronic files, the board must require that a filer use a personal identification code when submitting an electronic file. The board may also request the filer to provide a valid e-mail address in order to receive confirmation and verification messages from the board.

C.

After an electronic file is processed by the board, the information contained in the electronic file becomes the property of the state subject to the terms of the Data Practices Act under Minnesota Statutes, chapter 13.

D.

In the case of a filing by facsimile transmission, the filer must retain the original of the filed document and a record of the date and time of the transmission. If an electronic filing system is used to submit an electronic file to the board, the filer must retain as documentation the database and information on which the electronic submission of data is based. The database and records are subject to audit as provided in Minnesota Statutes, chapter 10A.

E.

Within five days of a request by the board, any person filing a document by facsimile transmission or electronic filing system shall refile the document by one of the other filing methods provided in subpart 1.

F.

Technical problems that prevent the successful submission of a facsimile transmission or electronic file do not relieve the filer of the responsibility of meeting the requirements of Minnesota Statutes, chapter 10A. An audit trail that demonstrates that the facsimile transmission or electronic file was successfully submitted in a timely fashion may be used by the board to waive late filing fees.

4503.0200 ORGANIZATION OF POLITICAL COMMITTEES AND POLITICAL FUNDS.

Subp. 6.

Depositories.

The depositories of a political committee or political fund include any depository in which the committee or fund has a savings, checking, or similar account, or purchases a money market certificate or certificate of deposit. Before registering, a political committee or political fund which expects to receive money or negotiable instruments must establish a checking, savings, or similar account in the name of "Campaign Fund of (name of candidate, committee, or fund)."

4503.0300 TERMINATION OF POLITICAL COMMITTEE OR POLITICAL FUND.

Subp. 4.

Payment plan pending dissolution of inactive political committee or political fund.

An inactive political committee or political fund that must dissolve according to Minnesota Statutes, section 10A.242, and that has liquidated its available assets to pay its debts may submit to the board a proposed payment schedule to settle any remaining debts. Upon approval of the schedule, the board may allow the committee or fund to defer dissolution until all debts are paid.

4503.0400 DISTRICT COURT JUDICIAL CANDIDATES.

Subpart 1.

Donations in kind.

Donations in kind to a candidate for district court judge which in aggregate exceed $100 must be disclosed in accordance with Minnesota Statutes, section 10A.20, subdivision 3, paragraph (b).

4503.0500 CONTRIBUTIONS.

Subp. 5.

Contributions from Hennepin County registered associations.

In lieu of registration with the board, an association registered with the Hennepin County filing officer under Minnesota Statutes, sections 383B.041 to 383B.058, that makes contributions of more than $100 to a committee or fund in a calendar year may notify the recipient committee of its registration with Hennepin County, including its registration number, and instruct the recipient committee to include the notice when the recipient committee discloses receipt of the contribution.

4503.0500 CONTRIBUTIONS.

Subp. 8.

Value of contributions of automobile use.

Automobile use provided to a committee by an individual may be valued at the lowest rate used by the state to reimburse its employees for automobile use. Alternatively, the value of the automobile may be calculated as the actual cost of fuel, maintenance, repairs, and insurance directly related to the use of the automobile. The use of an automobile that exceeds $20 in value a day is either an expenditure that must be reimbursed or a donation in kind from the individual who provided the use of the automobile. An automobile provided by an association must be valued at the fair market value for renting an equivalent automobile.

4503.0700 CONTRIBUTION LIMITS.

Subp. 2.

Special election contribution limits.

Election year contribution limits set forth in Minnesota Statutes, section 10A.27, apply to a special election cycle.

4503.0700 CONTRIBUTION LIMITS.

Subp. 3.

Independent application of limits for special election.

Contribution limits apply independently for election years, other years, and special election cycles.

4503.1300 GOVERNOR AND LIEUTENANT GOVERNOR.

Subp. 5.

Return of contributions after merger.

Funds transferred to the joint committee which result in aggregate contributions in excess of the applicable limits may be returned to the contributor within 60 days of the transfer of funds to the joint committee.

4503.1400 PUBLIC SUBSIDY AGREEMENTS.

Subp. 8.

Affidavit of contributions for special elections.

For a special election for which the filing period does not coincide with a general election, the candidate must submit the affidavit of contributions not later than five days after filing an affidavit of candidacy or nominating petition for the office sought.

4503.1400 PUBLIC SUBSIDY AGREEMENTS.

Subp. 9.

Increase for first-time candidates.

Candidates who qualify for first-time candidate status receive a ten percent increase in the campaign expenditure limit in all years of the applicable election cycle.

4503.1450 DISTRIBUTION OF GENERAL ACCOUNT PUBLIC SUBSIDY FUNDS.

Subpart 1.

Agreement.

The general account public subsidy agreement required in Minnesota Statutes, section 10A.31, subdivision 7, may be provided to candidates on a separate form, or incorporated into the public subsidy agreement. The agreement must require that the candidate spend or be legally obligated to spend at least 50 percent of the general account public subsidy payment by the end of the reporting period prior to the general election. The agreement must also provide that if the candidate does not meet this requirement, the candidate must repay the board the difference between the candidates general account public subsidy payment and the candidates total campaign expenditures as of the end of the reporting period prior to the general election. The agreement must further provide that the candidate must reimburse the board for any reasonable collection costs incurred in securing the repayment of the unused general account public subsidy payment.

4503.1450 DISTRIBUTION OF GENERAL ACCOUNT PUBLIC SUBSIDY FUNDS.

Subp. 3.

Estimate of general account public subsidy payment.

For purposes of determining a candidate's fulfillment of the terms of the agreement, the board must use the September 1 certification of available funds from the commissioner of the Department of Revenue to estimate the general account public subsidy payment for the candidate's office. Using first class mail, the board must inform each candidate eligible for a general account payment of the minimum amount that must be spent to comply with the terms of the agreement.

4503.1600 CONTRIBUTIONS AND SOLICITATIONS DURING LEGISLATIVE SESSION.

If the board makes a public finding that there is probable cause to believe a violation of Minnesota Statutes, section 10A.273, has occurred, in lieu of pursuing or enforcing a judgment, the board may accept payment of any fine imposed and thereafter close the matter.

4503.1700 FILING OF 48-HOUR NOTICE.

The 48-hour notice required under Minnesota Statutes, section 10A.20, subdivision 5, may be filed by facsimile transmission in addition to the other methods permitted by law.

4503.1800 REPORTING REQUIREMENTS.

Subpart 1.

Contributions.

Legislative, statewide, and judicial candidates, party units, political committees and funds, and committees and funds to promote or defeat a ballot question must itemize contributions that in aggregate exceed $100 in a calendar year on reports submitted to the board. The itemization must include the date on which the contribution was received, the individual or association that provided the contribution, and the address of the contributor. Additionally, the itemization for a donation in kind must provide a description of the item or service received. Contributions that are less than the itemization amount must be reported as an aggregate total.

Subp. 2.

Expenditures and noncampaign disbursements.

Legislative, statewide, and judicial candidates, party units, political committees and funds, and committees to promote or defeat a ballot question must itemize expenditures and noncampaign disbursements that in aggregate exceed $100 in a calendar year on reports submitted to the board. The itemization must include the date on which the committee made or became obligated to make the expenditure or disbursement, the name and address of the vendor that provided the service or item purchased, and a description of the service or item purchased. Expenditures and noncampaign disbursements must be listed on the report alphabetically by vendor.

4505.0100 DEFINITIONS.

Subp. 3.

Compensation in any month.

For the purpose of an original statement of economic interest, "compensation in any month" includes only compensation received in the calendar month immediately preceding the date of appointment as a public official or filing as a candidate.

For the purpose of supplementary statements of economic interest to be filed, "compensation in any month" includes compensation and honorariums received in any month between the end of the period covered in the preceding statement of economic interest and the end of the current period.

For the purpose of calculating the amount of compensation received from any single source in a single month, the amount shall include the total amount received from the source during the month, whether or not the amount covers compensation for more than one month.

4505.0900 FILING.

Subp. 2.

Filing of more than one statement in any year.

An individual who has filed a statement of economic interest within the calendar year shall file a supplementary statement within 14 days after filing an affidavit of candidacy or accepting employment or appointment to an office requiring the advice and consent of the senate.

4505.0900 FILING.

Subp. 3.

Statement after period when no statement required.

A public official or candidate, who previously filed a statement of economic interest and who is required to file a new statement of economic interest following a period when no statement was required, shall file an original statement.

4505.0900 FILING.

Subp. 4.

Termination as a public official.

An individual shall file a statement of economic interest to cover the period for which the individual served as a public official even though at the time the statement is filed, the individual is no longer holding that office as a public official. The statement of economic interest does not need to be filed if there have been no changes from the most recent statement of economic interest filed with the board.

4505.0900 FILING.

Subp. 5.

Option.

An individual whose term as a public official has ended after April 1 and before March 31 shall file either a supplementary statement on the next following April 15 through the last date of service or file a statement of termination as a public official through the last date of service. The latter statement may be filed at any time after the term ends and before the next following April 15.

4505.0900 FILING.

Subp. 6.

Change of public official position.

A public official who leaves one public official position and is appointed to another public official position within the year between the time when the individual filed either an original statement or a supplementary statement and April 15 of the following year shall file a termination statement for the former office within ten days after leaving that office. The individual shall file an original statement relative to the new office within the time imposed by Minnesota Statutes, section 10A.09, subdivision 1.

4505.0900 FILING.

Subp. 7.

Reporting of securities.

A public official must list the full name of each security with a value of $2,500 or more owned in part or in full by the public official at any time during the reporting period.

4511.0500 LOBBYIST REPORTING REQUIREMENTS.

Subp. 2.

Reporting by multiple lobbyists representing the same entity.

Items A to F apply if a single individual, association, political subdivision, or public higher education system is represented by more than one lobbyist.

A.

The entity must appoint one designated lobbyist to report lobbyist disbursements made by the entity. The designated lobbyist must indicate that status on the periodic reports of lobbyist disbursements.

B.

A reporting lobbyist may consent to report on behalf of one or more other lobbyists for the same entity, in which case, the other lobbyists are persons about whose activities the reporting lobbyist must disclose and are subject to the disclosure requirements of Minnesota Statutes, section 10A.04, subdivision 3. Lobbyist disbursement reports filed by a reporting lobbyist must include the names and registration numbers of the other lobbyists whose activities are included in the report.

C.

Lobbyists whose activities are accounted for by a reporting lobbyist are not required to file lobbyist disbursement reports.

D.

A lobbyist whose lobbying disbursements are provided to the board through a reporting lobbyist must supply all relevant information on disbursements to the reporting lobbyist no later than five days before the prescribed filing date.

E.

The reporting periods and due dates for a reporting lobbyist are those provided in Minnesota Statutes, section 10A.04, subdivision 3. The board must notify by certified mail or personal service each reporting lobbyist that fails to file a required report within seven days of a statutory filing date. Additionally, the board must notify by certified mail or personal service each lobbyist listed on the registration of the reporting lobbyist of the failure of the reporting lobbyist to file in a timely manner. Within ten business days of the date on which the notice was sent, each lobbyist must report disbursements to the board. If a lobbyist fails to file a report within ten business days of the date on which the notice was sent by the board, the board may impose a late filing fee of $5 per day, not to exceed a maximum of $100, commencing with the 11th day after the notice was sent.

F.

The reporting lobbyist must indicate the names and registration numbers of any lobbyists who did not provide their lobbying disbursements for inclusion in a report. The board must send notice by certified mail or personal service to a lobbyist who failed to provide the required disbursement information to the reporting lobbyist. The notice must require that the lobbyist file an individual lobbyist disbursement report within ten business days of the mailing of the notice. If a lobbyist fails to file a report within ten business days of the mailing of the notice, the board may impose a late filing fee of $5 per day, not to exceed a maximum of $100, commencing with the 11th day after receiving notice.

4512.0100 DEFINITIONS.

Subp. 2.

Field of specialty.

"Field of specialty" means a vocation, profession, trade, craft, or avocation of the individual.

4512.0100 DEFINITIONS.

Subp. 4.

Individual services.

"Individual services" means services performed by an official outside of official duties.

4512.0100 DEFINITIONS.

Subp. 5.

Plaque or similar memento.

"Plaque or similar memento" means a decorative item with an inscription recognizing an individual for an accomplishment.

4525.0210 DETERMINATIONS PRIOR TO FORMAL INVESTIGATION.

Subpart 1.

Preparation for prima facie determination.

After a complaint is filed, the executive director must follow the notice provisions in Minnesota Statutes, section 10A.022, subdivision 3, with regard to the respondent's right to submit written arguments addressing the prima facie determination.

Upon the expiration of the time provided for the respondent to submit written argument, the executive director must submit the matter to the board member who will make the determination or to all board members if the full board will make the determination. The submission must include the complaint, any response submitted by the respondent, and an analysis of the allegations of the complaint and the violations that it alleges.