1.1 	A bill for an act
1.2 	relating to the operation of state government finance; allowing the secretary 
1.3 	of state authority to accept funds from local government units for election 
1.4 	systems enhancements and to receive certain funds for the address confidentiality 
1.5 	program; allowing the state auditor to charge a onetime user fee for a small 
1.6 	city and town accounting system software; changing provisions for bid 
1.7 	solicitations and proposals; requiring a report for contracts over $25,000; 
1.8 	changing certain provisions for service contracts and the solicitation process; 
1.9 	requiring a determination of the IT cost for agency technology projects; 
1.10 	expanding E-Government initiative and establishing the E-Government 
1.11 	Advisory Council; changing certain audit provisions from the state auditor to 
1.12 	the legislative auditor; repealing the Minnesota Sunset Act; changing provisions 
1.13 	for barbering and cosmetology; changing licensing provisions for accountants; 
1.14 	changing a paid military leave provision; modifying provisions in the Veterans 
1.15 	Service Office grant program; changing provision in the Minnesota GI Bill 
1.16 	program; establishing a veterans home in Beltrami County; making Department 
1.17 	of Revenue changes; making compensation council changes and requiring a 
1.18 	compensation study; adjusting certain salary groups; establishing administrative 
1.19 	penalties; establishing fees; appropriating money;amending Minnesota Statutes 
1.20 	2012, sections 3.099, subdivision 1; 3.855, subdivision 3; 13.591, subdivision 
1.21 	3; 15A.0815, subdivisions 1, 2, 3, 5; 15A.082, subdivision 2; 16A.82; 16C.02, 
1.22 	subdivision 13; 16C.06, subdivision 2; 16C.08, subdivision 4; 16C.09; 16C.10, 
1.23 	subdivision 6; 16C.145; 16C.33, subdivision 3; 16C.34, subdivision 1; 16E.07, 
1.24 	subdivision 6, by adding a subdivision; 32C.04; 43A.17, subdivisions 1, 3; 
1.25 	65B.84, subdivision 1; 154.001, by adding a subdivision; 154.003; 154.02; 
1.26 	154.05; 154.06; 154.065, subdivision 2; 154.07, subdivision 1; 154.08; 
1.27 	154.09; 154.10, subdivision 1; 154.11, subdivision 1; 154.12; 154.14; 154.15, 
1.28 	subdivision 2; 154.26; 155A.23, subdivision 3; 155A.25, subdivisions 1a, 4; 
1.29 	155A.27, subdivisions 4, 7, 10; 155A.29, subdivision 2; 155A.30, subdivision 
1.30 	1, by adding subdivisions; 192.26; 197.608, subdivisions 1, 3, 4, 5, 6; 197.791, 
1.31 	subdivisions 4, 5; 254A.035, subdivision 2; 254A.04; 256B.093, subdivision 
1.32 	1; 260.835, subdivision 2; 270C.69, subdivision 1; 289A.20, subdivisions 2, 
1.33 	4; 289A.26, subdivision 2a; 295.55, subdivision 4; 297F.09, subdivision 7; 
1.34 	297G.09, subdivision 6; 297I.30, by adding a subdivision; 297I.35, subdivision 
1.35 	2; 326A.04, subdivisions 2, 3, 5, 7; 326A.10; 469.3201; 473.843, subdivision 3; 
1.36 	Laws 2012, chapter 278, article 1, section 5; article 2, sections 27; 34; proposing 
1.37 	coding for new law in Minnesota Statutes, chapters 4; 5; 5B; 6; 16E; 154; 
1.38 	155A; 198; 297I; 349A; repealing Minnesota Statutes 2012, sections 3D.01; 
1.39 	3D.02; 3D.03; 3D.04; 3D.045; 3D.05; 3D.06; 3D.065; 3D.07; 3D.08; 3D.09; 
2.1 	3D.10; 3D.11; 3D.12; 3D.13; 3D.14; 3D.15; 3D.16; 3D.17; 3D.18; 3D.19; 
2.2 	3D.20; 3D.21, subdivisions 2, 3, 4, 5, 6, 7, 8; 43A.17, subdivision 4; 155A.25, 
2.3 	subdivision 1; 168A.40, subdivisions 3, 4; 197.608, subdivision 2a; 270C.145; 
2.4 	326A.03, subdivisions 2, 5, 8; Laws 2012, chapter 278, article 1, section 6; 
2.5 	Minnesota Rules, parts 1105.0600; 1105.2550; 1105.2700.
2.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.7 	ARTICLE 1
2.8 	STATE GOVERNMENT APPROPRIATIONS

2.9	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 	
2.10 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.11 	agencies and for the purposes specified in this article. The appropriations are from the 
2.12 	general fund, or another named fund, and are available for the fiscal years indicated 
2.13 	for each purpose. The figures "2014" and "2015" used in this article mean that the 
2.14 	appropriations listed under them are available for the fiscal year ending June 30, 2014, or 
2.15 	June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal 
2.16 	year 2015. "The biennium" is fiscal years 2014 and 2015. 

2.17				APPROPRIATIONS
	
2.18				Available for the Year
	
2.19				Ending June 30
	
2.20					2014
		2015

2.21	Sec. 2. LEGISLATURE

2.22	Subdivision 1.Total Appropriation
 	$
	69,220,000
	$
	69,220,000

2.23	Appropriations by Fund
	
2.24		2014
	2015
	
2.25	General
	69,092,000
	69,092,000
	
2.26	Health Care Access
	128,000
	128,000
	
2.27 	The amounts that may be spent for each 
2.28 	purpose are specified in the following 
2.29 	subdivisions.

2.30	Subd. 2.Senate
 		22,633,000
		22,633,000

2.31	Subd. 3.House of Representatives
 		30,524,000
		30,524,000
	
2.32 	During the biennium ending June 30, 2015, 
2.33 	any revenues received by the house of 
2.34 	representatives from voluntary donations 
3.1 	to support broadcast or print media are 
3.2 	appropriated to the house of representatives.

3.3	Subd. 4.Legislative Coordinating Commission
 		16,063,000
		16,063,000

3.4	Appropriations by Fund
	
3.5	General
	15,935,000
	15,935,000
	
3.6	Health Care Access 
	128,000
	128,000
	
3.7 	$6,185,000 each year from the general fund 
3.8 	is for the Office of the Legislative Auditor.
3.9 	From its funds, $10,000 each year is for 
3.10 	purposes of the legislators' forum, through 
3.11 	which Minnesota legislators meet with 
3.12 	counterparts from South Dakota, North 
3.13 	Dakota, and Manitoba to discuss issues of 
3.14 	mutual concern.
3.15 	The Legislative Coordinating Commission 
3.16 	is authorized to enter into an agreement 
3.17 	with the National Conference of State 
3.18 	Legislatures to provide the organization up to 
3.19 	$100,000 of its funds to support activities in 
3.20 	preparation for the annual conference to be 
3.21 	held in Minnesota in 2014. It is anticipated 
3.22 	that these funds will be returned to the 
3.23 	Legislative Coordinating Commission, and 
3.24 	are reappropriated to the commission.

3.25
3.26	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	3,193,000
	$
	3,193,000
	
3.27 	(a) This appropriation is to fund the Office of 
3.28 	the Governor and Lieutenant Governor.
3.29 	(b) $19,000 the first year and $19,000 the 
3.30 	second year are for necessary expenses in the 
3.31 	normal performance of the Governor's and 
3.32 	Lieutenant Governor's duties for which no 
3.33 	other reimbursement is provided.
4.1 	(c) By September 1 of each year, the 
4.2 	commissioner of management and budget 
4.3 	shall report to the chairs and ranking minority 
4.4 	members of the senate State Departments 
4.5 	and Veterans Affairs Budget Division and the 
4.6 	house of representatives State Government 
4.7 	Finance Committee any personnel costs 
4.8 	incurred by the Offices of the Governor and 
4.9 	Lieutenant Governor that were supported 
4.10 	by appropriations to other agencies during 
4.11 	the previous fiscal year. The Office of the 
4.12 	Governor shall inform the chairs and ranking 
4.13 	minority members of the committees before 
4.14 	initiating any interagency agreements.
4.15 	(d) During the biennium ending June 30, 
4.16 	2015, the Office of the Governor may not 
4.17 	receive payments of more than $720,000 
4.18 	each fiscal year from other executive 
4.19 	agencies under Minnesota Statutes, section 
4.20 	15.53, to support office costs, not including 
4.21 	the residence groundskeeper, incurred by 
4.22 	the office. Payments received under this 
4.23 	paragraph must be deposited in a special 
4.24 	revenue account. Money in the account is 
4.25 	appropriated to the Office of the Governor. 
4.26 	The authority in this paragraph supersedes 
4.27 	other law enacted in 2013 that limits the 
4.28 	ability of the office to enter into agreements 
4.29 	relating to office costs with other executive 
4.30 	branch agencies or prevents the use of 
4.31 	appropriations made to other agencies for 
4.32 	agreements with the office under Minnesota 
4.33 	Statutes, section 15.53.

4.34	Sec. 4. STATE AUDITOR
 	$
	8,559,000
	$
	8,559,000

5.1	Sec. 5. ATTORNEY GENERAL
 	$
	23,288,000
	$
	23,288,000

5.2	Appropriations by Fund
	
5.3		2014
	2015
	
5.4	General
	21,071,000
	21,071,000
	
5.5
5.6	State Government 
Special Revenue
	1,822,000
	1,822,000
	
5.7	Environmental
	145,000
	145,000
	
5.8	Remediation
	250,000
	250,000
	
5.9 	Of this appropriation, $65,000 in the first 
5.10 	year and $65,000 in the second year are 
5.11 	from the general fund for transfer to the 
5.12 	commissioner of public safety for a grant to 
5.13 	the Minnesota County Attorneys Association 
5.14 	for prosecutor and law enforcement training.

5.15	Sec. 6. SECRETARY OF STATE
 	$
	5,665,000
	$
	5,810,000
	
5.16 	Any funds available in the account 
5.17 	established in Minnesota Statutes, section 
5.18 	5.30, pursuant to the Help America Vote Act, 
5.19 	is appropriated for the purposes and uses 
5.20 	authorized by federal law.
5.21 	Redistricting Case. $355,000 the first year 
5.22 	is appropriated to the secretary of state to 
5.23 	be used to pay attorney fees as ordered by 
5.24 	the court in the legislative and congressional 
5.25 	redistricting case Hippert et al. v. Ritchie 
5.26 	et al., A11-152, and interest thereon. This 
5.27 	appropriation is available for expenditure the 
5.28 	day following final enactment.

5.29
5.30	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	1,000,000
	$
	1,000,000

5.31	Sec. 8. INVESTMENT BOARD
 	$
	139,000
	$
	139,000

5.32	Sec. 9. ADMINISTRATIVE HEARINGS
 	$
	7,730,000
	$
	7,504,000

6.1	Appropriations by Fund
	
6.2		2014
	2015
	
6.3	General
	480,000
	254,000
	
6.4
6.5	Workers' 
Compensation
	7,250,000
	7,250,000
	
6.6 	Campaign Violations Hearings. (a) 
6.7 	$130,000 the first year is appropriated from 
6.8 	the general fund for the cost of considering 
6.9 	complaints filed under Minnesota Statutes, 
6.10 	section 211B.32. Any amount of this 
6.11 	appropriation that remains unspent at the 
6.12 	end of the biennium must be canceled to 
6.13 	the general account of the state elections 
6.14 	campaign fund. The base for fiscal year 2016 
6.15 	is $130,000, to be available for the biennium, 
6.16 	under the same terms. 
6.17 	(b) $60,000 the first year is appropriated 
6.18 	from the general fund to cover the fiscal year 
6.19 	2013 costs of campaign violations hearings. 
6.20 	This is a onetime appropriation.
6.21 	Data Practices Hearings. $36,000 the first 
6.22 	year is appropriated from the general fund 
6.23 	to cover the fiscal year 2013 costs for data 
6.24 	practices hearings.

6.25
6.26	Sec. 10. OFFICE OF ENTERPRISE 
TECHNOLOGY
 	$
	2,431,000
	$
	2,431,000
	
6.27 	During the biennium ending June 30, 2015, 
6.28 	the Office of Enterprise Technology must 
6.29 	not charge fees to a public noncommercial 
6.30 	educational television broadcast station 
6.31 	eligible for funding under Minnesota 
6.32 	Statutes, chapter 129D, for access to the 
6.33 	state broadcast infrastructure. If the access 
6.34 	fees not charged to public noncommercial 
6.35 	educational television broadcast stations total 
7.1 	more than $400,000 for the biennium, the 
7.2 	office may charge for access fees in excess 
7.3 	of these amounts.
7.4 	The commissioner of Minnesota management 
7.5 	and budget is authorized to provide cash 
7.6 	flow assistance of up to $110,000,000 from 
7.7 	the special revenue fund or other statutory 
7.8 	general funds as defined in Minnesota 
7.9 	Statutes, section 16A.671, subdivision 3, 
7.10 	paragraph (a), to the Office of Enterprise 
7.11 	Technology for the purpose of managing 
7.12 	revenue and expenditure differences during 
7.13 	the initial phases of IT consolidation. These 
7.14 	funds shall be repaid with interest by June 
7.15 	30, 2015.

7.16	Sec. 11. ADMINISTRATION

7.17	Subdivision 1.Total Appropriation
 	$
	22,026,000
	$
	19,496,000
	
7.18 	The amounts that may be spent for each 
7.19 	purpose are specified in the following 
7.20 	subdivisions.

7.21	Subd. 2.Government and Citizen Services
 		7,698,000
		7,668,000
	
7.22 	$74,000 the first year and $74,000 the second 
7.23 	year are for the Council on Developmental 
7.24 	Disabilities.
7.25 	$30,000 the first year is for a bust of Nellie 
7.26 	Stone Johnson. Notwithstanding Minnesota 
7.27 	Statutes, section 138.68, the commissioner 
7.28 	of administration shall place a bust of Nellie 
7.29 	Stone Johnson in the State Capitol Building. 
7.30 	The Department of Administration, in 
7.31 	consultation with the Minnesota Historical 
7.32 	Society and the Capitol Area Architectural 
7.33 	and Planning Board, shall apply existing 
7.34 	guidelines for design and placement of works 
8.1 	of art in the State Capitol Building. This 
8.2 	appropriation is available until expended.
8.3 	The transfer of the duties of the 
8.4 	Environmental Quality Board to the 
8.5 	Pollution Control Agency is contained in 
8.6 	Senate File No. ....., if enacted.

8.7	Subd. 3.Strategic Management Services
 		1,757,000
		1,757,000

8.8	Subd. 4.Fiscal Agent
 		12,571,000
		10,071,000
	
8.9 	The appropriations under this section are to 
8.10 	the commissioner of administration for the 
8.11 	purposes specified.
8.12 	In-Lieu of Rent. $8,158,000 the first year 
8.13 	and $8,158,000 the second year are for 
8.14 	office space costs of the legislature and 
8.15 	veterans organizations, ceremonial space, 
8.16 	and statutorily free space.
8.17 	Public Broadcasting. (a) $2,332,000 the 
8.18 	first year and $1,057,000 the second year are 
8.19 	for matching grants for public television.
8.20 	(b) $415,000 the first year and $190,000 
8.21 	the second year are for public television 
8.22 	equipment grants. 
8.23 	(c) The equipment or matching grants in 
8.24 	paragraphs (a) and (b) must be allocated 
8.25 	after considering the recommendations of the 
8.26 	Minnesota Public Television Association.
8.27 	(d) $634,000 the first year and $264,000 the 
8.28 	second year are for community service grants 
8.29 	to public educational radio stations, for the 
8.30 	repair, rental, and purchase of equipment, 
8.31 	including equipment under $500.
8.32 	(e) $222,000 the first year and $92,000 the 
8.33 	second year are for equipment grants to 
8.34 	public educational radio stations.
9.1 	(f) Notwithstanding eligibility requirements 
9.2 	in Minnesota Statutes, section 129D.14, 
9.3 	station KOJB in Cass Lake on the Leech 
9.4 	Lake Reservation; station KBFT in Nett Lake 
9.5 	on the Bois Forte Reservation; and station 
9.6 	KKWE in Callaway on the White Earth 
9.7 	Reservation are eligible to receive matching 
9.8 	grants and equipment grants in paragraphs 
9.9 	(d) and (e).
9.10 	(g) The grants in paragraphs (d) and (e) 
9.11 	must be allocated after considering the 
9.12 	recommendations of the Association of 
9.13 	Minnesota Public Educational Radio Stations 
9.14 	under Minnesota Statutes, section 129D.14.
9.15 	(h) $810,000 the first year and $310,000 
9.16 	the second year are for equipment grants 
9.17 	to Minnesota Public Radio, Inc., including 
9.18 	upgrades to Minnesota's Emergency Alert 
9.19 	and AMBER Alert Systems.
9.20 	(i) Any unencumbered balance remaining the 
9.21 	first year for grants to public television or 
9.22 	radio stations does not cancel and is available 
9.23 	for the second year.

9.24
9.25
9.26	Sec. 12. CAPITOL AREA 
ARCHITECTURAL AND PLANNING 
BOARD
 	$
	325,000
	$
	325,000

9.27
9.28	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	26,644,000
	$
	20,369,000
	
9.29 	Statewide Budget System. $4,500,000 the 
9.30 	first year and $725,000 the second year are 
9.31 	for the statewide budget system. $3,120,000 
9.32 	in fiscal year 2014 is for transfer to the 
9.33 	Office of Enterprise Technology to continue 
9.34 	development of the new statewide budget 
9.35 	system and to develop new capabilities 
10.1 	including, but not limited to, capital budget 
10.2 	and fiscal notes. The transfer is onetime and 
10.3 	is available until spent.
10.4 	Enterprise-Wide Results Management.
10.5 	 $500,000 the first year and $500,000 the 
10.6 	second year are for building capacity to 
10.7 	provide enterprise-wide results management 
10.8 	facilitation and coordination.
10.9 	Enterprise Human Resources Capacity.
10.10 	 $900,000 the first year and $900,000 the 
10.11 	second year are for rebuilding the state's 
10.12 	human resources infrastructure.
10.13 	Compensation Council Increases.
10.14 	 $2,500,000 from the general fund is 
10.15 	appropriated to the commissioner for 
10.16 	implementation of the compensation 
10.17 	increases in article 7 for executive branch 
10.18 	agencies and constitutional offices. The 
10.19 	commissioner shall determine the amount 
10.20 	of general fund increases for the biennium 
10.21 	to each agency and office, and within the 
10.22 	available appropriation, make a transfer that 
10.23 	is added to the base of each agency or office. 
10.24 	Of this amount, up to $200,000 is to conduct 
10.25 	the compensation study in article 7, section 
10.26 	10. The total amount added to the base is not 
10.27 	to exceed $2,500,000 in fiscal years 2016 
10.28 	and 2017.
10.29 	Any funds remaining nontransferred after 
10.30 	implementation of the compensation 
10.31 	increases and the compensation study 
10.32 	in article 7 may be transferred by the 
10.33 	commissioner and added to the base of each 
10.34 	agency or office to cover increased general 
11.1 	fund compensation costs due to the most 
11.2 	recent collective bargaining agreements.

11.3	Sec. 14. REVENUE

11.4	Subdivision 1.Total Appropriation
 	$
	140,673,000
	$
	140,137,000

11.5	Appropriations by Fund
	
11.6		2014
	2015
	
11.7	General
	136,438,000
	135,902,000
	
11.8	Health Care Access
	1,749,000
	1,749,000
	
11.911.10
	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
11.11	Environmental
	303,000
	303,000

11.12	Subd. 2.Tax System Management
 		112,057,000
		111,521,000

11.13	Appropriations by Fund
	
11.14	General
	107,822,000
	107,286,000
	
11.15	Health Care Access
	1,749,000
	1,749,000
	
11.16
11.17	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
11.18	Environmental
	303,000
	303,000
	
11.19 	County Technical Assistance Grants. (a) 
11.20 	The commissioner of revenue may make 
11.21 	technical assistance grants to counties to 
11.22 	fund development, implementation, or 
11.23 	maintenance of data collection and data 
11.24 	processing systems that will facilitate 
11.25 	improved reporting of property tax data 
11.26 	on parcels and portions of parcels to 
11.27 	the commissioner for analytical and 
11.28 	administrative use. The grants may be made 
11.29 	in the order they are requested, or on some 
11.30 	other basis determined by the commissioner. 
11.31 	The commissioner shall determine whether to 
11.32 	require an application or recipient agreement 
11.33 	and shall determine the form and content of 
11.34 	the application or agreement.
11.35 	(b) $300,000 is appropriated to the 
11.36 	commissioner from the general fund in fiscal 
12.1 	year 2014 to make grants to counties as 
12.2 	provided in this section. This appropriation 
12.3 	is available for fiscal years 2014 and 2015 
12.4 	only, and does not become part of the base.
12.5 	Appropriation; Taxpayer Assistance. (a) 
12.6 	$200,000 in fiscal year 2014, and $200,000 
12.7 	in fiscal year 2015, are added to the base 
12.8 	appropriation of $200,000 each year. These 
12.9 	amounts are appropriated from the general 
12.10 	fund to the commissioner of revenue to 
12.11 	make grants to one or more nonprofit 
12.12 	organizations, qualifying under section 
12.13 	501(c)(3) of the Internal Revenue Code of 
12.14 	1986, to coordinate, facilitate, encourage, and 
12.15 	aid in the provision of taxpayer assistance 
12.16 	services. The unencumbered balance in the 
12.17 	first year does not cancel but is available for 
12.18 	the second year.
12.19 	(b) For purposes of this section, "taxpayer 
12.20 	assistance services" means accounting 
12.21 	and tax preparation services provided by 
12.22 	volunteers to low-income, elderly, and 
12.23 	disadvantaged Minnesota residents to help 
12.24 	them file federal and state income tax returns 
12.25 	and Minnesota property tax refund claims 
12.26 	and to provide personal representation before 
12.27 	the Department of Revenue and Internal 
12.28 	Revenue Service.

12.29	Subd. 3.Debt Collection Management
 		28,616,000
		28,616,000

12.30	Sec. 15. GAMBLING CONTROL
 	$
	3,959,000
	$
	3,959,000
	
12.31 	These appropriations are from the lawful 
12.32 	gambling regulation account in the special 
12.33 	revenue fund.

13.1	Sec. 16. RACING COMMISSION
 	$
	899,000
	$
	899,000
	
13.2 	These appropriations are from the racing 
13.3 	and card playing regulation accounts in the 
13.4 	special revenue fund.

13.5	Sec. 17. STATE LOTTERY
 					
13.6 	Notwithstanding Minnesota Statutes, section 
13.7 	349A.10, subdivision 3, the operating budget 
13.8 	must not exceed $30,500,000 in fiscal year 
13.9 	2014 and $30,500,000 in fiscal year 2015.

13.10	Sec. 18. AMATEUR SPORTS COMMISSION
 	$
	278,000
	$
	278,000

13.11
13.12	Sec. 19. COUNCIL ON BLACK 
MINNESOTANS
 	$
	417,000
	$
	417,000

13.13
13.14	Sec. 20. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	379,000
	$
	379,000

13.15
13.16	Sec. 21. COUNCIL ON AFFAIRS OF 
CHICANO/LATINO PEOPLE
 	$
	400,000
	$
	400,000

13.17	Sec. 22. INDIAN AFFAIRS COUNCIL
 	$
	587,000
	$
	587,000
	
13.18 	Of this appropriation, $167,000 each year is 
13.19 	for a cultural resources specialist to assist the 
13.20 	council with the duties assigned to it relating 
13.21 	to Indian burial grounds under Minnesota 
13.22 	Statutes, section 307.08.

13.23
13.24	Sec. 23. MINNESOTA HISTORICAL 
SOCIETY

13.25	Subdivision 1.Total Appropriation
 	$
	21,059,000
	$
	20,925,000
	
13.26 	The amounts that may be spent for each 
13.27 	purpose are specified in the following 
13.28 	subdivisions.

13.29	Subd. 2.Operations and Programs
 		20,611,000
		20,611,000
	
14.1 	Notwithstanding Minnesota Statutes, section 
14.2 	138.668, the Minnesota Historical Society 
14.3 	may not charge a fee for its general tours at 
14.4 	the Capitol, but may charge fees for special 
14.5 	programs other than general tours. $150,000 
14.6 	the first year and $150,000 the second year are 
14.7 	for expanding education outreach, including 
14.8 	curriculum workshops, curriculum materials, 
14.9 	and summer internships for at-risk youth.
14.10 	$50,000 the first year and $50,000 the second 
14.11 	year are for the Minnesota Forest History 
14.12 	Center.

14.13	Subd. 3.Fiscal Agent

14.14	(a) Minnesota International Center
		39,000
		39,000

14.15	(b) Minnesota Air National Guard Museum
		34,000
		-0-

14.16	(c) Minnesota Military Museum
		160,000
		60,000
	
14.17 	Of this amount, $60,000 each year is for an 
14.18 	archivist staff position. The base for fiscal 
14.19 	year 2016 is $100,000.

14.20	(d) Farmamerica
		115,000
		115,000

14.21	(e) Hockey Hall of Fame
		100,000
		100,000
	
14.22 	Balances Forward. Any unencumbered 
14.23 	balance remaining in this subdivision the first 
14.24 	year does not cancel but is available for the 
14.25 	second year of the biennium.

14.26	Sec. 24. BOARD OF THE ARTS

14.27	Subdivision 1.Total Appropriation
 	$
	7,567,000
	$
	7,567,000
	
14.28 	The amounts that may be spent for each 
14.29 	purpose are specified in the following 
14.30 	subdivisions.

14.31	Subd. 2.Operations and Services
 		567,000
		567,000

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

15.1	Subd. 4.Regional Arts Councils
 		2,200,000
		2,200,000
	
15.2 	Unencumbered Balance Available. Any 
15.3 	unencumbered balance remaining in this 
15.4 	section the first year does not cancel, but is 
15.5 	available for the second year of the biennium.

15.6
15.7	Sec. 25. MINNESOTA HUMANITIES 
CENTER
 	$
	301,000
	$
	251,000
	
15.8 	$50,000 the first year is for a grant to 
15.9 	Everybody Wins!-Minnesota, a Minnesota 
15.10 	501(c)(3) corporation, to operate a reading 
15.11 	program for Minnesota children.

15.12	Sec. 26. BOARD OF ACCOUNTANCY
 	$
	480,000
	$
	736,000
	
15.13 	The base is $652,000 for fiscal year 2016 and 
15.14 	$652,000 for fiscal year 2017.

15.15
15.16
15.17
15.18	Sec. 27. BOARD OF ARCHITECTURE, 
ENGINEERING, LAND SURVEYING, 
LANDSCAPE ARCHITECTURE, 
GEOSCIENCE, AND INTERIOR DESIGN
 	$
	774,000
	$
	774,000

15.19
15.20	Sec. 28. BOARD OF COSMETOLOGIST 
EXAMINERS
 	$
	1,353,000
	$
	1,347,000

15.21	Sec. 29. BOARD OF BARBER EXAMINERS
 	$
	317,000
	$
	317,000

15.22
15.23	Sec. 30. GENERAL CONTINGENT 
ACCOUNTS
 	$
	1,000,000
	$
	500,000

15.24	Appropriations by Fund
	
15.25		2014
	2015
	
15.26	General
	500,000
	-0-
	
15.27
15.28	State Government 
Special Revenue
	400,000
	400,000
	
15.29
15.30	Workers' 
Compensation
	100,000
	100,000
	
15.31 	(a) The appropriations in this section 
15.32 	may only be spent with the approval of 
15.33 	the governor after consultation with the 
16.1 	Legislative Advisory Commission pursuant 
16.2 	to Minnesota Statutes, section 3.30.
16.3 	(b) If an appropriation in this section for 
16.4 	either year is insufficient, the appropriation 
16.5 	for the other year is available for it.
16.6 	(c) If a contingent account appropriation 
16.7 	is made in one fiscal year, it should be 
16.8 	considered a biennial appropriation.

16.9	Sec. 31. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
16.10 	These appropriations are to be spent by the 
16.11 	commissioner of management and budget 
16.12 	according to Minnesota Statutes, section 
16.13 	3.736, subdivision 7. If the appropriation for 
16.14 	either year is insufficient, the appropriation 
16.15 	for the other year is available for it.

16.16
16.17	Sec. 32. MINNESOTA STATE RETIREMENT 
SYSTEM

16.18	Subdivision 1.Total Appropriation
 	$
	3,891,000
	$
	3,964,000
	
16.19 	The amounts that may be spent for each 
16.20 	purpose are specified in the following 
16.21 	subdivisions.

16.22	Subd. 2.Legislators
 		3,406,000
		3,475,000
	
16.23 	Under Minnesota Statutes, sections 3A.03, 
16.24 	subdivision 2; 3A.04, subdivisions 3 and 4; 
16.25 	and 3A.115.

16.26	Subd. 3. Constitutional Officers
 		485,000
		489,000
	
16.27 	Under Minnesota Statutes, section 352C.001, 
16.28 	if an appropriation in this section for either 
16.29 	year is insufficient, the appropriation for the 
16.30 	other year is available for it.

16.31
16.32	Sec. 33. MINNEAPOLIS EMPLOYEES 
RETIREMENT FUND DIVISION ACCOUNT
 	$
	24,000,000
	$
	24,000,000
	
17.1 	These amounts are estimated to be needed 
17.2 	under Minnesota Statutes, section 353.505.

17.3
17.4	Sec. 34. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	15,454,000
	$
	15,454,000
	
17.5 	The amounts estimated to be needed are as 
17.6 	follows:
17.7 	Special Direct State Aid. $12,954,000 the 
17.8 	first year and $12,954,000 the second year 
17.9 	are for special direct state aid authorized 
17.10 	under Minnesota Statutes, section 354A.12, 
17.11 	subdivisions 3a and 3c.
17.12 	Special Direct State Matching Aid.
17.13 	 $2,500,000 the first year and $2,500,000 
17.14 	the second year are for special direct state 
17.15 	matching aid authorized under Minnesota 
17.16 	Statutes, section 354.435.

17.17
17.18	Sec. 35. ST. PAUL TEACHERS 
RETIREMENT FUND
 	$
	2,827,000
	$
	2,827,000
	
17.19 	The amounts estimated to be needed for 
17.20 	special direct state aid to first class city 
17.21 	teachers retirement funds authorized under 
17.22 	Minnesota Statutes, section 354A.12, 
17.23 	subdivisions 3a and 3c.

17.24
17.25	Sec. 36. DULUTH TEACHERS 
RETIREMENT FUND
 	$
	346,000
	$
	346,000
	
17.26 	The amounts estimated to be needed for 
17.27 	special direct state aid to first class city 
17.28 	teachers retirement funds authorized under 
17.29 	Minnesota Statutes, section 354A.12, 
17.30 	subdivisions 3a and 3c.

17.31	Sec. 37. MILITARY AFFAIRS

17.32	Subdivision 1.Total Appropriation
 	$
	19,568,000
	$
	19,368,000
	
18.1 	The amounts that may be spent for each 
18.2 	purpose are specified in the following 
18.3 	subdivisions.

18.4	Subd. 2.Maintenance of Training Facilities
 		6,661,000
		6,661,000

18.5	Subd. 3.General Support
 		2,559,000
		2,359,000
	
18.6 	$200,000 in fiscal year 2014 is for a grant 
18.7 	to the USS Minnesota Commissioning 
18.8 	Committee to support activities related to 
18.9 	the commissioning of the USS Minnesota. 
18.10 	The grant shall be provided upon the 
18.11 	condition that each state-appropriated dollar 
18.12 	be matched with a private sector dollar. The 
18.13 	USS Minnesota Commissioning Committee 
18.14 	shall certify to the adjutant general by July 
18.15 	15, 2013, the amount of private sector funds 
18.16 	raised to support the commissioning of the 
18.17 	USS Minnesota. Acceptable matching funds 
18.18 	are private sector contributions that the USS 
18.19 	Minnesota Commissioning Committee has 
18.20 	received and that have not been used to 
18.21 	match any other state grant.

18.22	Subd. 4.Enlistment Incentives
 		10,348,000
		10,348,000
	
18.23 	If appropriations for either year of the 
18.24 	biennium are insufficient, the appropriation 
18.25 	from the other year is available. The 
18.26 	appropriations for enlistment incentives are 
18.27 	available until expended.

18.28	Sec. 38. VETERANS AFFAIRS

18.29	Subdivision 1.Total Appropriation
 	$
	63,003,000
	$
	62,248,000
	
18.30 	The amounts that may be spent for each 
18.31 	purpose are specified in the following 
18.32 	subdivisions.

18.33	Subd. 2.Veterans Services
 		15,546,000
		15,735,000
	
19.1 	Veterans Service Organizations. $353,000 
19.2 	each year is for grants to the following 
19.3 	congressionally chartered veterans service 
19.4 	organizations, as designated by the 
19.5 	commissioner: Disabled American Veterans, 
19.6 	Military Order of the Purple Heart, the 
19.7 	American Legion, Veterans of Foreign Wars, 
19.8 	Vietnam Veterans of America, AMVETS, 
19.9 	and Paralyzed Veterans of America. This 
19.10 	funding must be allocated in direct proportion 
19.11 	to the funding currently being provided by 
19.12 	the commissioner to these organizations.
19.13 	Minnesota Assistance Council for 
19.14 	Veterans. $750,000 each year is for a grant 
19.15 	to the Minnesota Assistance Council for 
19.16 	Veterans to provide assistance throughout 
19.17 	Minnesota to veterans and their families who 
19.18 	are homeless or in danger of homelessness, 
19.19 	including assistance with the following:
19.20 	(1) utilities;
19.21 	(2) employment; and
19.22 	(3) legal issues.
19.23 	The assistance authorized under this 
19.24 	paragraph must be made only to veterans who 
19.25 	have resided in Minnesota for 30 days prior 
19.26 	to application for assistance and according 
19.27 	to other guidelines established by the 
19.28 	commissioner. In order to avoid duplication 
19.29 	of services, the commissioner must ensure 
19.30 	that this assistance is coordinated with all 
19.31 	other available programs for veterans. The 
19.32 	base is $500,000 for fiscal year 2016 and 
19.33 	$500,000 for fiscal year 2017.
19.34 	IT Upgrades. $618,000 in fiscal year 2014 
19.35 	and $382,000 in fiscal year 2015 are to 
20.1 	improve and modernize the department's 
20.2 	information technology systems. These 
20.3 	funds shall be transferred to the Office of 
20.4 	Enterprise Technology. This is a onetime 
20.5 	transfer and is available until spent.
20.6 	Veterans Cemetery in Fillmore County.
20.7 	 $425,000 in fiscal year 2015 is for operation 
20.8 	of the new veterans cemetery in Fillmore 
20.9 	County. This amount is added to the 
20.10 	program's base funding.
20.11 	Honor Guards. $200,000 each year is 
20.12 	for compensation for honor guards at 
20.13 	the funerals of veterans under Minnesota 
20.14 	Statutes, section 197.231. This amount is 
20.15 	added to the program's base funding.
20.16 	Minnesota GI Bill. $200,000 each year is 
20.17 	for the costs of administering the Minnesota 
20.18 	GI Bill postsecondary educational benefits, 
20.19 	on-the-job training, and apprenticeship 
20.20 	program under Minnesota Statutes, section 
20.21 	197.791. Of this amount, $100,000 is for 
20.22 	transfer to the Office of Higher Education.
20.23 	Gold Star Program. $100,000 each year 
20.24 	is for administering the Gold Star Program 
20.25 	for surviving family members of deceased 
20.26 	veterans. This amount is added to the 
20.27 	program's base funding.
20.28 	County Veterans Service Office. $595,000 
20.29 	each year is for funding the County 
20.30 	Veterans Service Office grant program under 
20.31 	Minnesota Statutes, section 197.608.
20.32 	Veterans Paramedic Apprenticeship 
20.33 	Program. All unspent funds, estimated to 
20.34 	be $110,000, from the Veterans Paramedic 
20.35 	Apprenticeship Program, from the onetime 
21.1 	appropriation under Laws 2009, chapter 79, 
21.2 	article 13, section 7, are canceled to the 
21.3 	general fund on July 1, 2013.

21.4	Subd. 3.Veterans Homes
 		47,457,000
		46,513,000
	
21.5 	Veterans Homes Special Revenue Account.
21.6 	 The general fund appropriations made to the 
21.7 	department may be transferred to a veterans 
21.8 	homes special revenue account in the special 
21.9 	revenue fund in the same manner as other 
21.10 	receipts are deposited according to Minnesota 
21.11 	Statutes, section 198.34, and are appropriated 
21.12 	to the department for the operation of 
21.13 	veterans homes facilities and programs.
21.14 	IT Upgrades. $2,472,000 in fiscal year 2014 
21.15 	and $1,528,000 in fiscal year 2015 are to 
21.16 	improve and modernize the department's 
21.17 	information technology systems. These 
21.18 	funds shall be transferred to the Office of 
21.19 	Enterprise Technology. This is a onetime 
21.20 	transfer and is available until spent.
21.21 	Maximize Federal Reimbursements.
21.22 	 The department will seek opportunities 
21.23 	to maximize federal reimbursements of 
21.24 	Medicare-eligible expenses and will provide 
21.25 	annual reports to the commissioner of 
21.26 	management and budget on the federal 
21.27 	Medicare reimbursements received. 
21.28 	Contingent upon future federal Medicare 
21.29 	receipts, reductions to the homes' general 
21.30 	fund appropriation may be made.

21.31 	ARTICLE 2
21.32 	MINNESOTA SUNSET ACT

21.33 	Section 1. Minnesota Statutes 2012, section 254A.035, subdivision 2, is amended to 
21.34 	read:
22.1 		Subd. 2.Membership terms, compensation, removal and expiration. The 
22.2 	membership of this council shall be composed of 17 persons who are American Indians 
22.3 	and who are appointed by the commissioner. The commissioner shall appoint one 
22.4 	representative from each of the following groups: Red Lake Band of Chippewa Indians; 
22.5 	Fond du Lac Band, Minnesota Chippewa Tribe; Grand Portage Band, Minnesota 
22.6 	Chippewa Tribe; Leech Lake Band, Minnesota Chippewa Tribe; Mille Lacs Band, 
22.7 	Minnesota Chippewa Tribe; Bois Forte Band, Minnesota Chippewa Tribe; White Earth 
22.8 	Band, Minnesota Chippewa Tribe; Lower Sioux Indian Reservation; Prairie Island Sioux 
22.9 	Indian Reservation; Shakopee Mdewakanton Sioux Indian Reservation; Upper Sioux 
22.10 	Indian Reservation; International Falls Northern Range; Duluth Urban Indian Community; 
22.11 	and two representatives from the Minneapolis Urban Indian Community and two from the 
22.12 	St. Paul Urban Indian Community. The terms, compensation, and removal of American 
22.13 	Indian Advisory Council members shall be as provided in section 15.059. The council 
22.14 	expires June 30, 2014, or in accordance with section 3D.21, whichever is later.

22.15 	Sec. 2. Minnesota Statutes 2012, section 254A.04, is amended to read:
22.16 	254A.04 CITIZENS ADVISORY COUNCIL.
22.17 	There is hereby created an Alcohol and Other Drug Abuse Advisory Council to 
22.18 	advise the Department of Human Services concerning the problems of alcohol and 
22.19 	other drug dependency and abuse, composed of ten members. Five members shall be 
22.20 	individuals whose interests or training are in the field of alcohol dependency and abuse; 
22.21 	and five members whose interests or training are in the field of dependency and abuse of 
22.22 	drugs other than alcohol. The terms, compensation and removal of members shall be as 
22.23 	provided in section 15.059. The council expires June 30, 2014, or in accordance with 
22.24 	section 3D.21, whichever is later. The commissioner of human services shall appoint 
22.25 	members whose terms end in even-numbered years. The commissioner of health shall 
22.26 	appoint members whose terms end in odd-numbered years.

22.27 	Sec. 3. Minnesota Statutes 2012, section 256B.093, subdivision 1, is amended to read:
22.28 		Subdivision 1.State traumatic brain injury program. The commissioner of 
22.29 	human services shall:
22.30 	(1) maintain a statewide traumatic brain injury program;
22.31 	(2) supervise and coordinate services and policies for persons with traumatic brain 
22.32 	injuries;
22.33 	(3) contract with qualified agencies or employ staff to provide statewide 
22.34 	administrative case management and consultation;
23.1 	(4) maintain an advisory committee to provide recommendations in reports to the 
23.2 	commissioner regarding program and service needs of persons with brain injuries;
23.3 	(5) investigate the need for the development of rules or statutes for the brain injury 
23.4 	home and community-based services waiver;
23.5 	(6) investigate present and potential models of service coordination which can be 
23.6 	delivered at the local level; and
23.7 	(7) the advisory committee required by clause (4) must consist of no fewer than ten 
23.8 	members and no more than 30 members. The commissioner shall appoint all advisory 
23.9 	committee members to one- or two-year terms and appoint one member as chair. 
23.10 	Notwithstanding section 15.059, subdivision 5, the advisory committee does not terminate 
23.11 	until June 30, 2014, or in accordance with section 3D.21, whichever is later.

23.12 	Sec. 4. Minnesota Statutes 2012, section 260.835, subdivision 2, is amended to read:
23.13 		Subd. 2.Expiration. Notwithstanding section 15.059, subdivision 5, the American 
23.14 	Indian Child Welfare Advisory Council expires June 30, 2014, or in accordance with 
23.15 	section 3D.21, whichever is later.

23.16 	Sec. 5. Laws 2012, chapter 278, article 1, section 5, is amended to read:
23.17 	Sec. 5. COUNCIL ON BLACK MINNESOTANS.
 23.18 	The Office of the Legislative Auditor should conduct a financial audit of the 
23.19 	Council on Black Minnesotans by December 1, 2013. In its next report to the Sunset 
23.20 	Advisory Commission governor and legislature under Minnesota Statutes, section 3.9225, 
23.21 	subdivision 7, the Council on Black Minnesotans must respond to any issues raised in this 
23.22 	audit and to issues raised in previous audits.

23.23 	Sec. 6. Laws 2012, chapter 278, article 2, section 27, is amended to read:
23.24 	Sec. 27. HEALTH-RELATED LICENSING BOARDS REPORTING 
23.25 	OBLIGATIONS.
 23.26 	(a) By January 15, 2013, the health-related boards and the commissioner of health, 
23.27 	as the regulator for occupational therapy practitioners, speech-language pathologists, 
23.28 	audiologists, and hearing instrument dispensers, shall jointly study and submit draft 
23.29 	legislation to the Sunset Commission and the chairs and ranking minority members of 
23.30 	the legislative committees with jurisdiction over health and human services developing 
23.31 	consistent reporting requirements that require institutions, professional societies, other 
23.32 	licensed professionals, courts, insurers, and other entities to report conduct constituting 
23.33 	grounds for disciplinary action to the respective regulatory entity. The study and draft 
24.1 	legislation shall include a self-reporting requirement that requires the licensed individual 
24.2 	to report to the respective regulatory entity any action that would require a report to be 
24.3 	filed by another specified entity. The study and draft legislation shall also include penalties 
24.4 	that may be imposed for failure to report.
24.5 	(b) Health-related boards with existing statutory reporting obligations shall 
24.6 	participate to ensure that the existing reporting requirements are consistent with the 
24.7 	recommended requirements and draft legislation.

24.8 	Sec. 7. Laws 2012, chapter 278, article 2, section 34, is amended to read:
24.9 	Sec. 34. BOARD OF MEDICAL PRACTICE REVIEW.
 24.10 	The legislative auditor is requested to conduct a special investigation of the 
24.11 	Minnesota Board of Medical Practice and its implementation of the Medical Practice 
24.12 	Act. The legislative auditor is requested to submit the results of the investigation to the 
24.13 	Legislative Audit Commission, the Sunset Advisory Commission, and the chairs and 
24.14 	ranking minority members of the senate and house of representatives policy committees 
24.15 	having jurisdiction over the board by January 1, 2013.

24.16 	Sec. 8. REVISOR'S INSTRUCTION.
 24.17 	The revisor of statutes shall delete all references to "the Sunset Advisory 
24.18 	Commission" wherever they appear in Minnesota Statutes, and shall make other changes 
24.19 	as necessary in Minnesota Statutes as a result of the enactment of this act.

24.20 	Sec. 9.  REPEALER.
 24.21 	(a)  Minnesota Statutes 2012, sections 3D.01; 3D.02; 3D.03; 3D.04; 3D.045; 3D.05; 
24.22 	3D.06; 3D.065; 3D.07; 3D.08; 3D.09; 3D.10; 3D.11; 3D.12; 3D.13; 3D.14; 3D.15; 3D.16; 
24.23 	3D.17; 3D.18; 3D.19; 3D.20; and 3D.21, subdivisions 2, 3, 4, 5, 6, 7, and 8, are repealed.
24.24 	(b)  Laws 2012, chapter 278, article 1, section 6, is  repealed.

24.25 	Sec. 10. EFFECTIVE DATE.
 24.26 	Sections 1 to 9 are effective the day following final enactment.

24.27 	ARTICLE 3
24.28 	STATE GOVERNMENT OPERATIONS

24.29 	Section 1. [5.38] AUTHORITY TO ACCEPT FUNDS.
24.30 	The secretary of state may enter into agreements with a local governmental unit to 
24.31 	provide a technological service or project to enhance the state's election system. The 
25.1 	secretary of state and the local governmental unit shall agree to the amount of consideration 
25.2 	to be paid under the agreement. In addition, the secretary of state may accept federal funds 
25.3 	for election purposes. If the secretary of state accepts federal funds and the terms of the 
25.4 	grant do not require the state to maintain its effort, section 3.3005 does not apply. If the 
25.5 	secretary of state accepts federal funds and the terms of the grant do require the state to 
25.6 	maintain its effort, section 3.3005 applies. The funds accepted under this section must be 
25.7 	deposited in accounts in the special revenue fund and are appropriated to the secretary of 
25.8 	state for the uses authorized by this section. The secretary of state shall report by January 
25.9 	15 each year to the chair and ranking minority members of the finance committees of the 
25.10 	house of representatives and the senate with jurisdiction over the secretary of state the total 
25.11 	amounts received in the preceding calendar year, the sources of those funds, and the uses 
25.12 	to which those funds were or will be put. For purposes of this section, "local governmental 
25.13 	unit" means a county, home rule charter or statutory city, town, or school district.

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

25.15 	Sec. 2. [5B.12] AUTHORITY TO ACCEPT FUNDS.
25.16 	Notwithstanding sections 16A.013 to 16A.016, the secretary of state may accept 
25.17 	funds contributed by individuals and may apply for grants from charitable foundations, to 
25.18 	be used for the address confidentiality program established in section 5B.03. In addition, 
25.19 	the secretary of state may apply for grants from the federal government for purposes of 
25.20 	the address confidentiality program. If the secretary of state accepts federal funds and the 
25.21 	terms of the grant do not require the state to maintain its effort, section 3.3005 does not 
25.22 	apply. If the secretary of state accepts federal funds and the terms of the grant do require 
25.23 	the state to maintain its effort, section 3.3005 applies. The funds accepted under this 
25.24 	section must be deposited in accounts in the special revenue fund and are appropriated 
25.25 	to the secretary of state for use in the address confidentiality program. The secretary of 
25.26 	state shall report by January 15 each year to the chair and ranking minority members of 
25.27 	the finance committees of the house of representatives and the senate with jurisdiction 
25.28 	over the secretary of state the total amounts received in the preceding calendar year, the 
25.29 	sources of those funds, except that contributions from program participants, if any, must 
25.30 	be aggregated and the names of program participants will not be reported, and the uses 
25.31 	to which those funds were or will be put.

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

25.33 	Sec. 3. [6.475] CITY AND TOWN ACCOUNTING SYSTEM SOFTWARE.
26.1 	(a) The state auditor may charge a onetime user fee to cities, towns, and other 
26.2 	government entities for the development, maintenance, and distribution of the small city 
26.3 	and town accounting system software. The amount of this fee shall be set by the state 
26.4 	auditor in consultation with the Minnesota Association of Townships, the League of 
26.5 	Minnesota Cities, and the Minnesota Association of Small Cities.
26.6 	(b) A city and town accounting systems (CTAS) account is established in the special 
26.7 	revenue fund.
26.8 	(c) Amounts received under paragraph (a) shall be credited to the CTAS account in 
26.9 	the special revenue fund and are appropriated to the state auditor for all costs associated 
26.10 	with the development, maintenance, and distribution of the small city and town accounting 
26.11 	system software. If at any time the small city and town accounting system software ceases 
26.12 	to be offered by the state auditor, any amount remaining in the CTAS account shall be 
26.13 	equitably refunded to users. The amount of the refund shall be set by the state auditor 
26.14 	in consultation with the Minnesota Association of Townships, the League of Minnesota 
26.15 	Cities, and the Minnesota Association of Small Cities, and the account shall be closed.

26.16 	Sec. 4. Minnesota Statutes 2012, section 13.591, subdivision 3, is amended to read:
26.17 		Subd. 3.Business as vendor. (a) Data submitted by a business to a government 
26.18 	entity in response to a request for bids as defined in section 16C.02, subdivision 11, are 
26.19 	private or nonpublic until the bids are opened. Once the bids are opened, the time and date 
26.20 	specified in the solicitation that bids are due, at which time the name of the bidder and the 
26.21 	dollar amount specified in the response are read and become public. All other data in a 
26.22 	bidder's response to a bid are private or nonpublic data until completion of the selection 
26.23 	process. For purposes of this section, "completion of the selection process" means that 
26.24 	the government entity has completed its evaluation and has ranked the responses. After a 
26.25 	government entity has completed the selection process, all remaining data submitted by 
26.26 	all bidders are public with the exception of trade secret data as defined and classified in 
26.27 	section 13.37. A statement by a bidder that submitted data are copyrighted or otherwise 
26.28 	protected does not prevent public access to the data contained in the bid.
26.29 	If all responses to a request for bids are rejected prior to completion of the selection 
26.30 	process, all data, other than that made public at the bid opening the name of the bidder 
26.31 	and the dollar amount specified in the response, remain private or nonpublic until a 
26.32 	resolicitation of bids results in completion of the selection process or a determination is 
26.33 	made to abandon the purchase. If the rejection occurs after the completion of the selection 
26.34 	process, the data remain public. If a resolicitation of bids does not occur within one year 
26.35 	of the bid opening date, the remaining data become public.
27.1 	(b) Data submitted by a business to a government entity in response to a request 
27.2 	for proposal, as defined in section 16C.02, subdivision 12, are private or nonpublic until 
27.3 	the responses are opened. Once the responses are opened, the time and date specified in 
27.4 	the solicitation that proposals are due, at which time the name of the responder is read 
27.5 	and becomes public. All other data in a responder's response to a request for proposal are 
27.6 	private or nonpublic data until completion of the evaluation process. For purposes of this 
27.7 	section, "completion of the evaluation process" means that the government entity has 
27.8 	completed negotiating the contract with the selected vendor. After a government entity 
27.9 	has completed the evaluation process, all remaining data submitted by all responders are 
27.10 	public with the exception of trade secret data as defined and classified in section 13.37. A 
27.11 	statement by a responder that submitted data are copyrighted or otherwise protected does 
27.12 	not prevent public access to the data contained in the response.
27.13 	If all responses to a request for proposal are rejected prior to completion of the 
27.14 	evaluation process, all data, other than that made public at the response opening,the 
27.15 	names of the responders, remain private or nonpublic until a resolicitation of the requests 
27.16 	for proposal results in completion of the evaluation process or a determination is made 
27.17 	to abandon the purchase. If the rejection occurs after the completion of the evaluation 
27.18 	process, the data remain public. If a resolicitation of proposals does not occur within one 
27.19 	year of the proposal opening date, the remaining data become public.

27.20 	Sec. 5. Minnesota Statutes 2012, section 16C.02, subdivision 13, is amended to read:
27.21 		Subd. 13.Resident vendor. "Resident vendor" means a person, firm, or corporation 
27.22 	that:
27.23 	(1) is authorized to conduct business in the state of Minnesota on the date a 
27.24 	solicitation for a contract is first advertised or announced. It includes a foreign corporation 
27.25 	duly authorized to engage in business in Minnesota.;
27.26 	(2) has paid unemployment taxes or income taxes in this state during the 12 calendar 
27.27 	months immediately preceding submission of the bid or proposal for which any preference 
27.28 	is sought;
27.29 	(3) has a business address in the state; and
27.30 	(4) has affirmatively claimed that status in the bid or proposal submission.

27.31 	Sec. 6. Minnesota Statutes 2012, section 16C.06, subdivision 2, is amended to read:
27.32 		Subd. 2.Solicitation process. (a) A formal solicitation must be used to acquire all 
27.33 	goods, service contracts, and utilities estimated at or more than $50,000, or in the case of 
27.34 	a Department of Transportation solicitation, at or more than $100,000, unless otherwise 
28.1 	provided for. All formal responses must be sealed when they are received and must be 
28.2 	opened in public at the hour stated in the solicitation made publicly available as required 
28.3 	by section 13.591. Formal responses must be authenticated by the responder in a manner 
28.4 	specified by the commissioner.
28.5 	(b) An informal solicitation may be used to acquire all goods, service contracts, 
28.6 	and utilities that are estimated at less than $50,000, or in the case of a Department of 
28.7 	Transportation solicitation, at or less than $100,000. The number of vendors required to 
28.8 	receive solicitations may be determined by the commissioner. Informal responses must be 
28.9 	authenticated by the responder in a manner specified by the commissioner.

28.10 	Sec. 7. Minnesota Statutes 2012, section 16C.08, subdivision 4, is amended to read:
28.11 		Subd. 4.Reports. (a) The commissioner shall submit to the governor, the chairs and 
28.12 	ranking minority members of the house of representatives Ways and Means and senate 
28.13 	Finance Committees, and the Legislative Reference Library a yearly listing of all contracts 
28.14 	for professional or technical services executed. The report must identify the contractor, 
28.15 	contract amount, duration, and services to be provided. The commissioner shall also issue 
28.16 	yearly reports summarizing the contract review activities of the department by fiscal year.
28.17 	(b) The fiscal year report must be submitted by September 1 of each year and must:
28.18 	(1) be sorted by agency and by contractor;
28.19 	(2) show the aggregate value of contracts issued by each agency and issued to each 
28.20 	contractor;
28.21 	(3) distinguish between contracts that are being issued for the first time and contracts 
28.22 	that are being extended;
28.23 	(4) state the termination date of each contract;
28.24 	(5) identify services by commodity code, including topics such as contracts for 
28.25 	training, contracts for research and opinions, and contracts for computer systems; and
28.26 	(6) identify which contracts were awarded without following the solicitation process 
28.27 	in this chapter because it was determined that there was only a single source for the services.
28.28 	(c) Within 30 days of final completion of a contract over $25,000 covered by this 
28.29 	subdivision, the head of the agency entering into the contract must submit a report to the 
28.30 	commissioner who must make the report publicly available online and submit a copy to 
28.31 	the Legislative Reference Library. The report must:
28.32 	(1) summarize the purpose of the contract, including why it was necessary to enter 
28.33 	into a contract;
28.34 	(2) state the amount spent on the contract;
29.1 	(3) if the contract was awarded without following the solicitation process in this 
29.2 	chapter because it was determined that there was only a single source for the services, 
29.3 	explain why the agency determined there was only a single source for the services; and
29.4 	(4) include a written performance evaluation of the work done under the contract. 
29.5 	The evaluation must include an appraisal of the contractor's timeliness, quality, cost, and 
29.6 	overall performance in meeting the terms and objectives of the contract. Contractors may 
29.7 	request copies of evaluations prepared under this subdivision and may respond in writing. 
29.8 	Contractor responses must be maintained with the contract file.

29.9 	EFFECTIVE DATE. This section is effective the day following certification by the 
29.10 	commissioner of management and budget that the information required to be reported by 
29.11 	Minnesota Statutes 2012, section 16C.08, subdivision 4, is available to the public in the 
29.12 	statewide accounting and procurement system.

29.13 	Sec. 8. Minnesota Statutes 2012, section 16C.09, is amended to read:
29.14 	16C.09 PROCEDURE FOR SERVICE CONTRACTS.
29.15 	(a) Before entering into or approving a service contract valued in excess of $5,000, 
29.16 	the commissioner must determine, at least, that:
29.17 	(1) no current state employee is able and available to perform the services called 
29.18 	for by the contract;
29.19 	(2) the work to be performed under the contract is necessary to the agency's 
29.20 	achievement of its statutory responsibilities and there is statutory authority to enter into 
29.21 	the contract;
29.22 	(3) the contract will not establish an employment relationship between the state or 
29.23 	the agency and any persons performing under the contract;
29.24 	(4) the contractor and agents are not employees of the state;
29.25 	(5) the contracting agency has specified a satisfactory method of evaluating and 
29.26 	using the results of the work to be performed; and
29.27 	(6) the combined contract and amendments will not exceed five years without 
29.28 	specific, written approval by the commissioner according to established policy, procedures, 
29.29 	and standards, or unless otherwise provided for by law. The term of the original contract 
29.30 	must not exceed two years, unless the commissioner determines that a longer duration is 
29.31 	in the best interest of the state.
29.32 	(b) For purposes of paragraph (a), clause (1), employees are available if qualified and:
29.33 	(1) are already doing the work in question; or
29.34 	(2) are on layoff status in classes that can do the work in question.
30.1 	An employee is not available if the employee is doing other work, is retired, or has decided 
30.2 	not to do the work in question.
30.3 	(c) This section does not apply to an agency's use of inmates pursuant to sections 
30.4 	241.20 to 241.23 or to an agency's use of persons required by a court to provide:
30.5 	(1) community service; or
30.6 	(2) conservation or maintenance services on lands under the jurisdiction and control 
30.7 	of the state.

30.8 	Sec. 9. Minnesota Statutes 2012, section 16C.10, subdivision 6, is amended to read:
30.9 		Subd. 6.Expenditures under specified amounts. The solicitation process 
30.10 	described in this chapter is not required for:
30.11 	(1) acquisition of goods or services, other than professional or technical services, 
30.12 	in an amount of $2,500 $5,000 or less; or
30.13 	(2) acquisition of professional or technical services in an amount of $5,000 or less, 
30.14 	provided the requirements of section 16C.08, subdivisions 3 to 6, are met.

30.15 	Sec. 10. Minnesota Statutes 2012, section 16C.145, is amended to read:
30.16 	16C.145 NONVISUAL TECHNOLOGY ACCESS STANDARDS.
30.17 	(a) The commissioner shall develop nonvisual technology access standards. The 
30.18 	standards must be included in all contracts for the procurement of information technology 
30.19 	by, or for the use of, agencies, political subdivisions, and the Minnesota State Colleges and 
30.20 	Universities. The University of Minnesota is encouraged to consider similar standards.
30.21 	(b) The nonvisual access standards must include the following minimum 
30.22 	specifications:
30.23 	(1) that effective, interactive control and use of the technology including the 
30.24 	operating system, applications programs, prompts, and format of the data presented, are 
30.25 	readily achievable by nonvisual means;
30.26 	(2) that the nonvisual access technology must be compatible with information 
30.27 	technology used by other individuals with whom the blind or visually impaired individual 
30.28 	must interact;
30.29 	(3) that nonvisual access technology must be integrated into networks used to share 
30.30 	communications among employees, program participants, and the public; and
30.31 	(4) that the nonvisual access technology must have the capability of providing 
30.32 	equivalent access by nonvisual means to telecommunications or other interconnected 
30.33 	network services used by persons who are not blind or visually impaired.
31.1 	(c) Nothing in this section requires the installation of software or peripheral devices 
31.2 	used for nonvisual access when the information technology is being used by individuals 
31.3 	who are not blind or visually impaired.
31.4 	(d) Executive branch state agencies subject to section 16E.03, subdivision 9, are not 
31.5 	required to include nonvisual technology access standards developed under this section in 
31.6 	contracts for the procurement of information technology.

31.7 	Sec. 11. Minnesota Statutes 2012, section 16C.33, subdivision 3, is amended to read:
31.8 		Subd. 3.Solicitation of qualifications or proposals. (a) Every user agency, except 
31.9 	the Capitol Area Architectural and Planning Board, shall submit a written request for a 
31.10 	design-builder for its project to the commissioner who shall forward the request to the 
31.11 	board, consistent with section 16B.33, subdivision 3, paragraph (a). The University of 
31.12 	Minnesota shall follow the process in subdivision 4 to select design-builders for projects 
31.13 	that are subject to section 16B.33. The written request must include a description of the 
31.14 	project, the total project cost, a description of any special requirements or unique features 
31.15 	of the proposed project, and other information requested by the board which will assist the 
31.16 	board in carrying out its duties and responsibilities set forth in this section.
31.17 	(b) A request for qualifications or proposals soliciting design-builders shall be 
31.18 	prepared for each design-build contract pursuant to subdivision 5 or 7. The request for 
31.19 	qualifications or proposals shall contain, at a minimum, the following elements:
31.20 	(1) the identity of the agency for which the project will be built and that will award 
31.21 	the design-build contract;
31.22 	(2) procedures for submitting qualifications or proposals, the criteria for evaluation 
31.23 	of qualifications or proposals and the relative weight for each criterion and subcriterion, 
31.24 	and the procedures for making awards according to the stated criteria and subcriteria, 
31.25 	including a reference to the requirements of this section;
31.26 	(3) the proposed terms and conditions for the contract;
31.27 	(4) the desired qualifications of the design-builder and the desired or permitted 
31.28 	areas of construction to be performed by named members of the design-build team, if 
31.29 	applicable. The primary designer shall be a named member of the design-build team;
31.30 	(5) the schedule for commencement and completion of the project;
31.31 	(6) any applicable budget limits for the project;
31.32 	(7) the requirements for insurance and statutorily required performance and payment 
31.33 	bonds;
31.34 	(8) the identification and location of any other information in the possession or 
31.35 	control of the agency that the user agency determines is material, which may include 
32.1 	surveys, soils reports, drawings or models of existing structures, environmental studies, 
32.2 	photographs, or references to public records;
32.3 	(9) for a design-build design and price-based selection process, the request shall 
32.4 	also include the design criteria package, including the performance and technical 
32.5 	requirements for the project, and the functional and operational elements for the delivery 
32.6 	of the completed project. The request shall also contain a description of the drawings, 
32.7 	specifications, or other submittals to be included with the proposal, with guidance as to 
32.8 	the form and level of completeness of the drawings, specifications or submittals that will 
32.9 	be acceptable, and the stipend to be paid to the design-builders selected to submit the 
32.10 	above described information; and
32.11 	(10) the criteria shall not impose unnecessary conditions beyond reasonable 
32.12 	requirements to ensure maximum participation of qualified design-builders. The criteria 
32.13 	shall not consider the collective bargaining status of the design-builder.
32.14 	(c) Notice of requests for qualifications or proposals must be advertised in the State 
32.15 	Register a manner designated by the commissioner.

32.16 	Sec. 12. Minnesota Statutes 2012, section 16C.34, subdivision 1, is amended to read:
32.17 		Subdivision 1.Solicitation of qualifications. (a) Every user agency, except 
32.18 	the Capitol Area Architectural and Planning Board, shall submit a written request for 
32.19 	proposals for a construction manager at risk for its project to the commissioner. The 
32.20 	written request for proposals must include a description of the project, the estimated cost 
32.21 	of completing the project, a description of any special requirements or unique features of 
32.22 	the proposed project, and other information which will assist the commissioner in carrying 
32.23 	out its duties and responsibilities set forth in this section.
32.24 	(b) The commissioner may include in the request for qualifications criteria a 
32.25 	requirement that the proposer include the overhead and fee that the construction manager 
32.26 	at risk proposes to charge for its services.
32.27 	(c) A request for qualifications shall be prepared for each construction manager at 
32.28 	risk contract as provided in this section. The request for qualifications shall contain, at a 
32.29 	minimum, the following elements:
32.30 	(1) the identity of the agency for which the project will be built and that will award 
32.31 	the construction manager at risk contract;
32.32 	(2) procedures for submitting qualifications, the criteria and subcriteria for evaluation 
32.33 	of qualifications and the relative weight for each criteria and subcriteria, and the procedures 
32.34 	for making awards in an open, competitive, and objective manner, and according to the 
32.35 	stated criteria and subcriteria, including a reference to the requirements of this section;
33.1 	(3) the terms and conditions for the contract;
33.2 	(4) the qualifications that the construction manager at risk shall be desired to have;
33.3 	(5) a schedule for commencement and completion of the project;
33.4 	(6) any applicable budget limits for the project;
33.5 	(7) requirements for insurance, statutorily required performance and payment bonds;
33.6 	(8) identification and location of any other information in the possession or control 
33.7 	of the agency that the user agency determines is material, which may include surveys, soils 
33.8 	reports, drawings or models of existing structures, environmental studies, photographs, or 
33.9 	references to public records; and
33.10 	(9) criteria shall not impose unnecessary conditions beyond reasonable requirements 
33.11 	to ensure maximum participation of construction managers at risk. The criteria shall not 
33.12 	consider the collective bargaining status of the construction manager at risk.
33.13 	(d) Notice of requests for qualifications must be advertised in the State Register a 
33.14 	manner designated by the commissioner.

33.15 	Sec. 13. [16E.0466] STATE AGENCY TECHNOLOGY PROJECTS.
33.16 	Every state agency with an information or telecommunications project must consult 
33.17 	with the Office of Enterprise Technology to determine what the IT cost of the project is, 
33.18 	and enter into a service level agreement with the Office of Enterprise Technology for 
33.19 	the IT cost portion of the project, unless the commissioner of the Office of Enterprise 
33.20 	Technology determines that an agreement is not required.

33.21 	Sec. 14. Minnesota Statutes 2012, section 16E.07, subdivision 6, is amended to read:
33.22 		Subd. 6.Fees. The office shall establish fees for technical and transaction services 
33.23 	for government units through North Star. Fees must be credited to the North Star account. 
33.24 	Except for the convenience fee under subdivision 12, the office may not charge a fee for 
33.25 	viewing or inspecting data made available through North Star or linked facilities, unless 
33.26 	specifically authorized by law.

33.27 	EFFECTIVE DATE. This section is effective July 1, 2013.

33.28 	Sec. 15. Minnesota Statutes 2012, section 16E.07, is amended by adding a subdivision 
33.29 	to read:
33.30 		Subd. 12.Private entity services; fee authority. (a) The office may enter into a 
33.31 	contract with a private entity to manage, maintain, support, and expand North Star and 
33.32 	online government information services to citizens and businesses.
34.1 	(b) A contract established under paragraph (a) may provide for compensation of the 
34.2 	private entity through a fee established under paragraph (c).
34.3 	(c) The office may charge and may authorize a private entity that enters into a 
34.4 	contract under paragraph (a) to charge a convenience fee for users of North Star and 
34.5 	online government information services up to a total of $2 per transaction. The office 
34.6 	shall consider the recommendation of the E-Government Advisory Council under section 
34.7 	16E.071 in setting the convenience fee. A fee established under this paragraph is in 
34.8 	addition to any fees or surcharges authorized under other law.
34.9 	(d) Receipts from the convenience fee shall be deposited in the North Star account 
34.10 	established in subdivision 7. Notwithstanding section 16A.1285, subdivision 2, receipts 
34.11 	credited to the account are appropriated to the office for payment to the contracted private 
34.12 	entity under paragraph (a). In lieu of depositing the receipts in the North Star account, the 
34.13 	office can directly transfer the receipts to the private entity or allow the private entity to 
34.14 	retain the receipts pursuant to a contract established under this subdivision.
34.15 	(e) The office shall report to the chairs and ranking minority members of the house 
34.16 	of representatives and senate committees with jurisdiction over state government finance 
34.17 	by January 15 of each odd-numbered year regarding the convenience fee receipts and 
34.18 	the status of North Star projects and online government information services developed 
34.19 	and supported by convenience fee receipts.

34.20 	Sec. 16. [16E.071] E-GOVERNMENT ADVISORY COUNCIL.
34.21 		Subdivision 1.E-Government Advisory Council established. The E-Government 
34.22 	Advisory Council is established for the purpose of improving online government 
34.23 	information services to citizens and businesses. 
34.24 		Subd. 2.Membership. The council shall consist of nine members as follows:
34.25 	(1) the state chief information officer or the chief information officer's designee;
34.26 	(2) one member appointed by the speaker of the house;
34.27 	(3) one member appointed by the senate Subcommittee on Committees of the Rules 
34.28 	and Administration Committee; and
34.29 	(4) six members appointed by the governor representing state executive branch 
34.30 	agencies that are actively involved with private businesses, the private business 
34.31 	community, or the public.
34.32 		Subd. 3.Initial appointments and first meeting. Appointing authorities shall 
34.33 	make the first appointments to the council by September 1, 2013. The first appointed 
34.34 	house member shall serve until the first Monday in January, 2015. The governor shall 
34.35 	designate three initial appointees to serve until the first Monday in January 2015. The 
35.1 	term of the other three initial appointees of the governor and the first appointed senator 
35.2 	shall be until the first Monday in January 2017. The chief information officer or the chief 
35.3 	information officer's designee shall convene the council's first meeting by November 1, 
35.4 	2013, and shall act as chair until the council elects a chair at its first meeting.
35.5 		Subd. 4.Terms; removal; vacancies; compensation. Membership terms, removal 
35.6 	of member, and filling of vacancies are as provided in section 15.059, except that members 
35.7 	shall not receive compensation or be reimbursed for expenses and except that terms of 
35.8 	initial appointees are as provided in subdivision 3.
35.9 		Subd. 5.Chair. The council shall annually elect a chair from its members.
35.10 		Subd. 6.Duties. The council shall recommend to the office the priority of North 
35.11 	Star projects and online government information services to be developed and supported 
35.12 	by convenience fee receipts. The council shall provide oversight on the convenience fee 
35.13 	and its receipts in the North Star account. The council shall by majority quorum vote to 
35.14 	recommend to approve or disapprove establishing the convenience fee on particular types 
35.15 	of transactions, the fee amount, and any changes in the fee amount. If the convenience fee 
35.16 	receipts are retained by or transferred to the private entity in lieu of deposit in the North 
35.17 	Star account, the council may audit the private entity's convenience fee receipts, expenses 
35.18 	paid by the receipts, and associated financial statements.
35.19 		Subd. 7.Staff. The office shall provide administrative support to the council.
35.20 		Subd. 8.Sunset. The council shall expire the first Monday in January 2017.
35.21 		Subd. 9.Reports. By June 1, 2014, and every year thereafter, the council shall 
35.22 	report to the office with its recommendations regarding establishing the convenience fee, 
35.23 	the fee amount, and changes to the fee amount.

35.24 	Sec. 17. Minnesota Statutes 2012, section 32C.04, is amended to read:
35.25 	32C.04 ACCOUNTS; AUDITS.
35.26 	The authority may establish funds and accounts that it determines to be reasonable and 
35.27 	necessary to conduct the business of the authority. The board shall provide for and pay the 
35.28 	cost of an independent annual audit of its official books and records be subject to audit by 
35.29 	the state legislative auditor. A copy of this an audit must be filed with the secretary of state.

35.30 	Sec. 18. Minnesota Statutes 2012, section 469.3201, is amended to read:
35.31 	469.3201 STATELEGISLATIVE AUDITOR; AUDITS OF JOB 
35.32 	OPPORTUNITY BUILDING ZONES AND BUSINESS SUBSIDY AGREEMENTS.
35.33 	As resources allow, the Office of the State Auditor legislative auditor must annually
35.34 	 audit the creation and operation of all job opportunity building zones and business subsidy 
36.1 	agreements entered into under Minnesota Statutes, sections 469.310 to 469.320. To the 
36.2 	extent necessary to perform this audit, the state auditor may request from the commissioner 
36.3 	of revenue tax return information of taxpayers who are eligible to receive tax benefits 
36.4 	authorized under section 469.315. To the extent necessary to perform this audit, the state 
36.5 	auditor may request from the commissioner of employment and economic development 
36.6 	wage detail report information required under section 268.044 of taxpayers eligible to 
36.7 	receive tax benefits authorized under section 469.315. All public officials and parties to 
36.8 	the agreements shall comply with the requirements of section 3.978, subdivision 2.

36.9 	Sec. 19. REVISOR'S INSTRUCTION.
 36.10 	In the next and subsequent editions of Minnesota Statutes, the revisor of statutes shall:
36.11 	(1) substitute the term "Office of MN.IT Services" for "Office of Enterprise 
36.12 	Technology" in each place where the latter term appears; and
36.13 	(2) substitute the term "MN.IT services revolving fund" for "enterprise technology 
36.14 	revolving fund" in each place where the latter term appears.

36.15 	ARTICLE 4
36.16 	LICENSING BOARDS

36.17 	Section 1. Minnesota Statutes 2012, section 154.001, is amended by adding a 
36.18 	subdivision to read:
36.19 		Subd. 4.Comprehensive examination. "Comprehensive examination" means all 
36.20 	parts of a test administered by the board, including but not limited to written, oral, and 
36.21 	practical components.

36.22 	Sec. 2. Minnesota Statutes 2012, section 154.003, is amended to read:
36.23 	154.003 FEES.
36.24 	(a) The fees collected, as required in this chapter, chapter 214, and the rules of the 
36.25 	board, shall be paid to the board. The board shall deposit the fees in the general fund 
36.26 	in the state treasury.
36.27 	(b) The board shall charge the following fees:
36.28 	(1) examination and certificate, registered barber, $85;
36.29 	(2) retake of written examination, registered barber, $10;
36.30 	(2) (3) examination and certificate, apprentice, $80;
36.31 	(4) retake of written examination, apprentice, $10;
36.32 	(3) (5) examination, instructor, $180;
37.1 	(4) (6) certificate, instructor, $65;
37.2 	(5) (7) temporary teacher or apprentice permit, $80;
37.3 	(6) (8) renewal of license, registered barber, $80;
37.4 	(7) (9) renewal of license, apprentice, $70;
37.5 	(8) (10) renewal of license, instructor, $80;
37.6 	(9) (11) renewal of temporary teacher permit, $65;
37.7 	(10) (12) student permit, $45;
37.8 	(13) renewal of student permit, $25;
37.9 	(11) (14) initial shop registration, $85;
37.10 	(12) (15) initial school registration, $1,030;
37.11 	(13) (16) renewal shop registration, $85;
37.12 	(14) (17) renewal school registration, $280;
37.13 	(15) (18) restoration of registered barber license, $95;
37.14 	(16) (19) restoration of apprentice license, $90;
37.15 	(17) (20) restoration of shop registration, $105;
37.16 	(18) (21) change of ownership or location, $55;
37.17 	(19) (22) duplicate license, $40; and
37.18 	(20) (23) home study course, $95 $75;
37.19 	(24) letter of license verification, $25; and
37.20 	(25) reinspection, $100.

37.21 	Sec. 3. Minnesota Statutes 2012, section 154.02, is amended to read:
37.22 	154.02 WHAT CONSTITUTES BARBERING.
37.23 	Any one or any combination of the following practices when done upon the head 
37.24 	and neck for cosmetic purposes and not for the treatment of disease or physical or mental 
37.25 	ailments and when done for payment directly or indirectly or without payment for the 
37.26 	public generally constitutes the practice of barbering within the meaning of sections 
37.27 	154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26: 
37.28 	to shave the face or neck, trim the beard, cut or bob the hair of any person of either sex 
37.29 	for compensation or other reward received by the person performing such service or any 
37.30 	other person; to give facial and scalp massage or treatments with oils, creams, lotions, 
37.31 	or other preparations either by hand or mechanical appliances; to singe, shampoo the 
37.32 	hair, or apply hair tonics; or to apply cosmetic preparations, antiseptics, powders, oils, 
37.33 	clays, or lotions to hair, scalp, face, or neck.

38.1 	Sec. 4. Minnesota Statutes 2012, section 154.05, is amended to read:
38.2 	154.05 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A 
38.3 	REGISTERED BARBER.
38.4 	A person is qualified to receive a certificate of registration as a registered barber:
38.5 	(1) who is qualified under the provisions of section 154.06;
38.6 	(2) who has practiced as a registered apprentice for a period of 12 months under the 
38.7 	immediate personal supervision of a registered barber; and
38.8 	(3) who has passed an examination conducted by the board to determine fitness to 
38.9 	practice barbering.
38.10 	An apprentice applicant for a certificate of registration to practice as a registered 
38.11 	barber who fails to pass the comprehensive examination conducted by the board and 
38.12 	who fails to pass a onetime retake of the written examination, shall continue to practice 
38.13 	as an apprentice for an additional two months 300 hours before being again entitled to 
38.14 	take eligible to retake the comprehensive examination for a registered barber as many 
38.15 	times as necessary to pass.

38.16 	Sec. 5. Minnesota Statutes 2012, section 154.06, is amended to read:
38.17 	154.06 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A 
38.18 	REGISTERED APPRENTICE.
38.19 	A person is qualified to receive a certificate of registration as a registered apprentice:
38.20 	(1) who has completed at least ten grades of an approved school;
38.21 	(2) who has graduated from a barber school approved by the a barber board within 
38.22 	the previous four years; and
38.23 	(3) who has passed an examination conducted by the board to determine fitness to 
38.24 	practice as a registered apprentice. An applicant who graduated from a barber school 
38.25 	approved by a barber board more than four years prior to application is required to 
38.26 	complete a further course of study of at least 500 hours.
38.27 	An applicant for a an initial certificate of registration to practice as an apprentice,
38.28 	 who fails to pass the comprehensive examination conducted by the board, and who fails to 
38.29 	pass a onetime retake of the written examination,  is required to complete a further course 
38.30 	of study of at least 500 hours, of not more than eight hours in any one working day, in a 
38.31 	barber school approved by the board before being eligible to retake the comprehensive 
38.32 	examination as many times as necessary to pass.
38.33 	A certificate of registration of an apprentice shall be valid for four years from the 
38.34 	date the certificate of registration is issued by the board and shall not be renewed for a fifth 
38.35 	year. During the four-year period the certificate of registration shall remain in full force 
39.1 	and effect only if the apprentice complies with all the provisions of sections 154.001, 
39.2 	154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26, including 
39.3 	the payment of an annual fee, and the rules of the board.
39.4 	If a registered apprentice, during the term in which the certificate of registration is in 
39.5 	effect, enters full-time active duty in the armed forces of the United States of America, 
39.6 	the expiration date of the certificate of registration shall be extended by a period of time 
39.7 	equal to the period or periods of active duty.
39.8 	If a registered apprentice graduates from a barber school approved by the board and 
39.9 	is issued a certificate of registration while incarcerated by the Department of Corrections 
39.10 	of the Federal Bureau of Prisons, the expiration date of the certificate of registration shall 
39.11 	be extended one time so that it expires four years from the date of first release from a 
39.12 	correctional facility.

39.13 	Sec. 6. Minnesota Statutes 2012, section 154.065, subdivision 2, is amended to read:
39.14 		Subd. 2.Qualifications. A person is qualified to receive a certificate of registration 
39.15 	as an instructor of barbering who:
39.16 	(1) is a graduate from of an approved high school, or its equivalent, as determined 
39.17 	by examination by the Department of Education;
39.18 	(2) has qualified for a teacher's or instructor's vocational certificate; successfully 
39.19 	completed vocational instructor training from a board-approved program or accredited 
39.20 	college or university program that includes the following courses or their equivalents as 
39.21 	determined by the board:
39.22 	(i) introduction to career and technical education training;
39.23 	(ii) philosophy and practice of career and technical education;
39.24 	(iii) course development for career and technical education;
39.25 	(iv) instructional methods for career and technical education; and
39.26 	(v) human relations;
39.27 	(3) is currently a registered barber and has at least three years experience as a 
39.28 	registered barber in this state, or its equivalent as determined by the board; and
39.29 	(4) has passed an examination conducted by the board to determine fitness to 
39.30 	instruct in barbering.
39.31 	A certificate of registration under this section is provisional until a teacher's or 
39.32 	instructor's vocational certificate has been issued by the Department of Education. A 
39.33 	provisional certificate of registration is valid for 30 days and is not renewable.

39.34 	Sec. 7. Minnesota Statutes 2012, section 154.07, subdivision 1, is amended to read:
40.1 		Subdivision 1.Admission requirements; course of instruction. No barber school 
40.2 	shall be approved by the board unless it requires, as a prerequisite to admission, ten grades 
40.3 	of an approved school or its equivalent, as determined by an examination conducted by 
40.4 	the commissioner of education, which shall issue a certificate that the student has passed 
40.5 	the required examination, and unless it requires, as a prerequisite to graduation, a course 
40.6 	of instruction of at least 1,500 hours, of not more than eight hours in any one working day. 
40.7 	The course of instruction must include the following subjects: scientific fundamentals 
40.8 	for barbering; hygiene; practical study of the hair, skin, muscles, and nerves; structure of 
40.9 	the head, face, and neck; elementary chemistry relating to sterilization and antiseptics; 
40.10 	diseases of the skin, hair, and glands; massaging and manipulating the muscles of the face 
40.11 	and neck; haircutting; shaving; trimming the beard; bleaching, tinting and dyeing the hair; 
40.12 	and the chemical waving and straightening of hair.

40.13 	Sec. 8. Minnesota Statutes 2012, section 154.08, is amended to read:
40.14 	154.08 APPLICATION; FEE.
40.15 	Each applicant for an examination shall:
40.16 	(1) make application to the Board of Barber Examiners on blank forms prepared and 
40.17 	furnished by it, the application to contain proof under the applicant's oath of the particular 
40.18 	qualifications and identity of the applicant;
40.19 	(2) furnish to the board two five-inch x three-inch signed photographs of the 
40.20 	applicant, one to accompany the application and one to be returned to the applicant, 
40.21 	to be presented to the board when the applicant appears for examination provide all 
40.22 	documentation required in support of the application; and
40.23 	(3) pay to the board the required fee; and
40.24 	(4) present a government-issued photo identification as proof of identity upon 
40.25 	application and when the applicant appears for examination.

40.26 	Sec. 9. Minnesota Statutes 2012, section 154.09, is amended to read:
40.27 	154.09 EXAMINATIONS, CONDUCT AND SCOPE.
40.28 	The board shall conduct examinations of applicants for certificates of registration to 
40.29 	practice as barbers and apprentices not more than six times each year, at such time and 
40.30 	place as the board may determine. Additional written examinations may be scheduled 
40.31 	by the board and conducted by board staff as designated by the board. The proprietor 
40.32 	of a barber school must file an affidavit shall be filed with the board by the proprietor 
40.33 	of a barber school that of hours completed by students applying to take the apprentice 
41.1 	examination have completed. Students must complete 1,500 hours in a barber school 
41.2 	registered with approved by the board.
41.3 	The examination of applicants for certificates of registration as barbers and 
41.4 	apprentices shall include both a practical demonstration and a written and oral test and 
41.5 	embrace. The examination must cover the subjects usually taught in barber schools 
41.6 	registered with the board.

41.7 	Sec. 10. Minnesota Statutes 2012, section 154.10, subdivision 1, is amended to read:
41.8 		Subdivision 1.Application. Each applicant for an initial certificate of registration 
41.9 	shall make application to the board on forms prepared and furnished by the board with 
41.10 	proof under oath of the particular qualifications and identity of each applicant. This 
41.11 	application shall be accompanied by a fee prescribed by law or the rules of the board to 
41.12 	defray the expenses of making investigation and for the examination of such applicant.

41.13 	Sec. 11. Minnesota Statutes 2012, section 154.11, subdivision 1, is amended to read:
41.14 		Subdivision 1.Examination of nonresidents. A person who meets all of the 
41.15 	requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01 to 
41.16 	154.161, 154.19 to 154.21, and 154.24 to 154.26 and either has a license, certificate 
41.17 	of registration, or an equivalent as a practicing barber or instructor of barbering from 
41.18 	another state or country which in the discretion of the board has substantially the same 
41.19 	requirements for registering barbers and instructors of barbering as required by sections 
41.20 	154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 or 
41.21 	can prove by sworn affidavits practice as a barber or instructor of barbering in another 
41.22 	state or country for at least five years immediately prior to making application in this state, 
41.23 	shall, upon payment of the required fee, be issued a certificate of registration without 
41.24 	examination, provided that the other state or country grants the same privileges to holders 
41.25 	of Minnesota certificates of registration.

41.26 	Sec. 12. Minnesota Statutes 2012, section 154.12, is amended to read:
41.27 	154.12 EXAMINATION OF NONRESIDENT APPRENTICES.
41.28 	A person who meets all of the requirements for registration as a barber in sections 
41.29 	154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and 
41.30 	who has a license, a certificate of registration, or its equivalent as an apprentice in a state 
41.31 	or country which in the discretion of the board has substantially the same requirements for 
41.32 	registration as an apprentice as is provided by sections 154.001, 154.002, 154.003, 154.01
41.33 	to 154.161, 154.19 to 154.21, and 154.24 to 154.26, shall, upon payment of the required 
42.1 	fee, be issued a certificate of registration without examination, provided that the other state 
42.2 	or country grants the same privileges to holders of Minnesota certificates of registration.

42.3 	Sec. 13. Minnesota Statutes 2012, section 154.14, is amended to read:
42.4 	154.14 CERTIFICATES OF REGISTRATION AND TEMPORARY PERMITS 
42.5 	TO BE DISPLAYED.
42.6 	Every holder of a certificate of registration as a registered barber or registered 
42.7 	apprentice or temporary apprentice permit shall display it the certificate or permit, with a 
42.8 	photograph of the certificate or permit holder that meets the same standards as required for 
42.9 	a United States passport, in a conspicuous place adjacent to or near the chair where work 
42.10 	is performed. Every holder of a certificate of registration as an instructor of barbering or 
42.11 	as a barber school, of a temporary permit as an instructor of barbering, shall display the 
42.12 	certificate or permit, with a photograph of the certificate or permit holder that meets the 
42.13 	same standards as required for a United States passport, in a conspicuous place accessible 
42.14 	to the public. Every holder of a certificate of registration as a barber school  and of a shop 
42.15 	registration card shall display it in a conspicuous place accessible to the public.

42.16 	Sec. 14. Minnesota Statutes 2012, section 154.15, subdivision 2, is amended to read:
42.17 		Subd. 2.Effect of failure to renew. A registered barber or a registered apprentice 
42.18 	who has not renewed a certificate of registration may be reinstated within one year four 
42.19 	years of such failure to renew without examination upon the payment of the required 
42.20 	restoration fee for each year the certificate is lapsed. A registered instructor of barbering 
42.21 	who has not renewed a certificate of registration may be reinstated within three four years 
42.22 	of such failure to renew without examination upon payment of the required restoration fee
42.23 	 for each year the certificate is lapsed. All registered barbers and registered apprentices 
42.24 	who allow their certificates of registration to lapse for more than one year four years shall 
42.25 	be required to reexamine before being issued a certificate of registration. All registered 
42.26 	instructors of barbering who allow their certificates of registration to lapse for more 
42.27 	than three four years shall be required to reexamine before being issued a certificate of 
42.28 	registration. A barber shop owner who has not renewed the barber shop certificate for more 
42.29 	than one year may reinstate the barber shop registration upon payment of the restoration 
42.30 	fee for each year the shop card was lapsed. If lapsed or unlicensed status is discovered by 
42.31 	the barber inspector during inspection, penalties under section 154.162 shall apply.

42.32 	Sec. 15. [154.162] ADMINISTRATIVE PENALTIES.
42.33 	The board shall impose and collect the following penalties:
43.1 	(1) missing or lapsed shop registration discovered upon inspection; penalty imposed 
43.2 	on shop owner: $500;
43.3 	(2) unlicensed or unregistered apprentice or registered barber, first occurrence 
43.4 	discovered upon inspection; penalty imposed on shop owner and unlicensed or 
43.5 	unregistered individual: $500; and
43.6 	(3) unlicensed or unregistered apprentice or registered barber, second occurrence 
43.7 	discovered upon inspection; penalty imposed on shop owner and unlicensed or 
43.8 	unregistered individual: $1,000.

43.9 	Sec. 16. Minnesota Statutes 2012, section 154.26, is amended to read:
43.10 	154.26 MUNICIPALITIES MAY REGULATE HOURS; REGULATION 
43.11 	AUTHORIZED.
43.12 	The governing body of any city of this state may regulate by ordinance the opening 
43.13 	and closing hours of barber shops within its municipal limits in addition to all other 
43.14 	applicable local regulations.

43.15 	Sec. 17. [154.27] MISREPRESENTATION.
43.16 	No person shall represent themselves to the public, solicit business, advertise as a 
43.17 	licensed barber or as operating a licensed barber shop, use the title or designation of barber 
43.18 	or barber shop, engage in any other act or practice that would create the impression to 
43.19 	members of the public that the person is a licensed barber or is operating a licensed barber 
43.20 	shop unless the person holds the appropriate license under this chapter. Violation of this 
43.21 	section is a petty misdemeanor.

43.22 	Sec. 18. [154.28] SYMBOLS; BARBER POLE.
43.23 	No person shall place a barber pole in a location that would create or tend to create 
43.24 	the impression to the public that the business is a barber shop unless the operator holds a 
43.25 	valid license under this chapter. For the purposes of this section, "barber pole" means a 
43.26 	red and white or red, white, and blue striped vertical cylinder commonly recognized as a 
43.27 	barber pole. Violation of this section is a petty misdemeanor.

43.28 	Sec. 19. Minnesota Statutes 2012, section 155A.23, subdivision 3, is amended to read:
43.29 		Subd. 3.Cosmetology. "Cosmetology" is the practice of personal services, for 
43.30 	compensation, for the cosmetic care of the hair, nails, and skin. These services include 
43.31 	cleaning, conditioning, shaping, reinforcing, coloring and enhancing the body surface in 
43.32 	the areas of the head, scalp, face, arms, hands, legs, and feet, and trunk of the body, except 
44.1 	where these services are performed by a barber under sections 154.001, 154.002, 154.003, 
44.2 	154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26.

44.3 	Sec. 20. Minnesota Statutes 2012, section 155A.25, subdivision 1a, is amended to read:
44.4 		Subd. 1a.Schedule. The fee schedule for licensees is as follows for licenses issued 
44.5 	after June 30, 2010, and prior to July 1, 2013:
44.6 	(a) Three-year license fees:
44.7 	(1) cosmetologist, manicurist  nail technician, or esthetician:
44.8 	(i) $90 for each initial license and a $40 nonrefundable initial license application fee, 
44.9 	for a total of $130; and
44.10 	(ii) $60 for each renewal and a $15 nonrefundable renewal application fee, for 
44.11 	a total of $75;
44.12 	(2) instructor or manager:
44.13 	(i) $120 for each initial license and a $40 nonrefundable initial license application 
44.14 	fee, for a total of $160; and
44.15 	(ii) $90 for each renewal and a $15 nonrefundable renewal application fee, for a 
44.16 	total of $105;
44.17 	(3) salon:
44.18 	(i) $130 for each initial license and a $100 nonrefundable initial license application 
44.19 	fee, for a total of $230; and
44.20 	(ii) $100 for each renewal and a $50 nonrefundable renewal application fee, for a 
44.21 	total of $150; and
44.22 	(4) school:
44.23 	(i) $1,500 for each initial license and a $1,000 nonrefundable initial license 
44.24 	application fee, for a total of $2,500; and
44.25 	(ii) $1,500 for each renewal and a $500 nonrefundable renewal application fee, 
44.26 	for a total of $2,000.
44.27 	(b) Penalties:
44.28 	(1) reinspection fee, variable;
44.29 	(2) manager and owner with lapsed practitioner found on inspection, $150 each;
44.30 	(3) lapsed practitioner or instructor found on inspection, $200;
44.31 	(4) lapsed salon found on inspection, $500;
44.32 	(5) lapsed school found on inspection, $1,000;
44.33 	(6) failure to display current license, $100;
44.34 	(7) failure to dispose of single-use equipment, implements, or materials as provided 
44.35 	under section 155A.355, subdivision 1, $500;
45.1 	(8) use of prohibited razor-type callus shavers, rasps, or graters under section 
45.2 	155A.355, subdivision 2, $500;
45.3 	(9) performing manicuring or cosmetology services in esthetician salon, or 
45.4 	performing esthetician or cosmetology services in manicure salon, $500;
45.5 	(10) owner and manager allowing an operator to work as an independent contractor, 
45.6 	$200;
45.7 	(11) operator working as an independent contractor, $100;
45.8 	(12) refusal or failure to cooperate with an inspection, $500;
45.9 	(3) (13) expired cosmetologist, manicurist, esthetician, manager, school manager, 
45.10 	and instructor license, $45; and
45.11 	(4) (14) expired salon or school license, $50.
45.12 	(c) Administrative fees:
45.13 	(1) certificate of identification, $20;
45.14 	(2) name change, $20;
45.15 	(3) letter of license verification, $30;
45.16 	(4) duplicate license, $20;
45.17 	(5) processing fee, $10;
45.18 	(6) special event permit, $75 per year; and
45.19 	(7) registration of hair braiders, $20 per year.

45.20 	Sec. 21. Minnesota Statutes 2012, section 155A.25, subdivision 4, is amended to read:
45.21 		Subd. 4.License expiration date. The board shall, in a manner determined by the 
45.22 	board and without the need for rulemaking under chapter 14, phase in changes to initial 
45.23 	and renewal license expiration dates so that by January 1, 2014:
45.24 	(1) individual licenses expire on the last day of the licensee's birth month of the 
45.25 	year due; and
45.26 	(2) salon and school licenses expire on the last day of the month of initial licensure 
45.27 	of the year due.

45.28 	Sec. 22. Minnesota Statutes 2012, section 155A.27, subdivision 4, is amended to read:
45.29 		Subd. 4.Testing. All theory, practical, and Minnesota law and rule testing must 
45.30 	be done by a board-approved provider. Appropriate standardized tests shall be used and 
45.31 	shall include subject matter relative to the application of Minnesota law. In every case, 
45.32 	the primary consideration shall be to safeguard the health and safety of consumers by 
45.33 	determining the competency of the applicants to provide the services indicated.

46.1 	Sec. 23. Minnesota Statutes 2012, section 155A.27, subdivision 7, is amended to read:
46.2 		Subd. 7.Renewals. Renewal of license shall be for a period of three years 
46.3 	under conditions and process established by rule and subject to continuing education 
46.4 	requirements of section 155A.271.

46.5 	Sec. 24. Minnesota Statutes 2012, section 155A.27, subdivision 10, is amended to read:
46.6 		Subd. 10.Nonresident licenses. (a) A nonresident cosmetologist, manicurist, or 
46.7 	esthetician may be licensed in Minnesota if the individual has completed cosmetology 
46.8 	school in a state or country with the same or greater school hour requirements, has an 
46.9 	active license in that state or country, and has passed a board-approved theory and 
46.10 	practice-based examination, the Minnesota-specific written operator examination for 
46.11 	cosmetologist, manicurist, or esthetician. 
46.12 	(b) If an individual has less than the required number of school hours, the individual 
46.13 	may be licensed in Minnesota if the individual has a current active license in another 
46.14 	state or country for at least three years, and has passed a board-approved theory and 
46.15 	practice-based examination, the Minnesota-specific written operator examination for 
46.16 	cosmetologist, manicurist, or esthetician.
46.17 	(c) If a test is used to verify the qualifications of trained cosmetologists, the test should 
46.18 	be translated into the nonresident's native language within the limits of available resources. 
46.19 	(d) Applicants claiming training and experience in a foreign country shall supply 
46.20 	official English-language translations of all required documents from a board-approved 
46.21 	source.
46.22 	(e) Licenses shall not be issued under this subdivision for managers or instructors.

46.23 	Sec. 25. [155A.271] CONTINUING EDUCATION REQUIREMENTS.
46.24 		Subdivision 1.Continuing education requirements.  Effective August 1, 2014, 
46.25 	to qualify for license renewal under this chapter as an individual cosmetologist, nail 
46.26 	technician, esthetician, or salon manager, the applicant must attest to the completion of 
46.27 	four hours of continuing education credits from an accredited school or a professional 
46.28 	association of cosmetology during the three years prior to the applicant's renewal 
46.29 	date. One credit hour of the requirement must include instruction pertaining to state 
46.30 	laws and rules governing the practice of cosmetology. Three credit hours must include 
46.31 	instruction pertaining to health, safety, and sanitation matters consistent with the United 
46.32 	States Department of Labor's Occupational Safety and Health Administration standards 
46.33 	applicable to the practice of cosmetology, or other applicable federal health, sanitation, 
46.34 	and safety standards, and must be regularly updated so as to incorporate newly developed 
47.1 	standards and accepted professional best practices. Credit hours earned are valid for three 
47.2 	years and may be applied simultaneously to all individual licenses held by a licensee under 
47.3 	this chapter. This subdivision does not apply to instructors or inactive licenses.
47.4 		Subd. 2.Schools and professional association. Only a board-licensed school of 
47.5 	cosmetology, a postsecondary institution as defined in section 136A.103, paragraph (a), or 
47.6 	a board-recognized professional association may offer continuing education curriculum 
47.7 	for credit under this section. The school or professional association may offer online 
47.8 	and independent study options to achieve maximum involvement of licensees and is 
47.9 	encouraged to offer classes available in foreign language formats.
47.10 		Subd. 3.Proof of credits. The school or professional association shall provide 
47.11 	to licensees who attend a class a receipt to prove completion of the class. Licensees 
47.12 	shall retain proof of their continuing education credits for one year beyond the credit's 
47.13 	expiration. The school or professional association shall retain documentation of all 
47.14 	licensees successfully completing a class and the licensee's credit hours for five years. 
47.15 		Subd. 4.Audit. The board shall conduct random audits of active licensees 
47.16 	periodically to ensure compliance with continuing education requirements. To initiate 
47.17 	an audit, the board shall notify an active licensee of the audit and request proof of 
47.18 	credits earned during a specified period. The licensee must provide the requested proof 
47.19 	to the board within 30 days of an audit notice. The board may request that a school or 
47.20 	professional association verify a licensee's credits. The school or professional association 
47.21 	must furnish verification, or a written statement that the credits are not verified, within 
47.22 	15 days of the board's request for verification. If the board determines that a licensee has 
47.23 	failed to provide proof of necessary credits earned during the specified time, the board 
47.24 	may revoke the individual's license and may deem the individual a lapsed practitioner 
47.25 	subject to penalty under section 155A.25 or 155A.36.

47.26 	Sec. 26. Minnesota Statutes 2012, section 155A.29, subdivision 2, is amended to read:
47.27 		Subd. 2.Requirements. (a) The conditions and process by which a salon is licensed 
47.28 	shall be established by the board by rule. In addition to those requirements, no license 
47.29 	shall be issued unless the board first determines that the conditions in clauses (1) to (5) 
47.30 	have been satisfied:
47.31 	(1) compliance with all local and state laws, particularly relating to matters of 
47.32 	sanitation, health, and safety;
47.33 	(2) the employment of a manager, as defined in section 155A.23, subdivision 8;
47.34 	(3) inspection and licensing prior to the commencing of business;
47.35 	(4) (3) if applicable, evidence of compliance with section 176.182; and
48.1 	(5) (4) evidence of continued professional liability insurance coverage of at least 
48.2 	$25,000 for each claim and $50,000 total coverage for each policy year for each operator.
48.3 	(b) A licensed esthetician or manicurist who complies with the health, safety, 
48.4 	sanitation, inspection, and insurance rules promulgated by the board to operate a salon 
48.5 	solely for the performance of those personal services defined in section 155A.23, 
48.6 	subdivision 5, in the case of an esthetician, or subdivision 7, in the case of a manicurist.

48.7 	Sec. 27. Minnesota Statutes 2012, section 155A.30, subdivision 1, is amended to read:
48.8 		Subdivision 1.Licensing. Any person who establishes or conducts a school in this 
48.9 	state shall be licensed. A school manager must maintain an active salon manager's license. 
48.10 	An instructor must maintain an active operator or manager's license in the area in which 
48.11 	the instructor holds an instructor's license.

48.12 	Sec. 28. Minnesota Statutes 2012, section 155A.30, is amended by adding a 
48.13 	subdivision to read:
48.14 		Subd. 11.Limit on hours of instruction.  Instruction shall not exceed ten hours 
48.15 	per day per student.

48.16 	Sec. 29. Minnesota Statutes 2012, section 155A.30, is amended by adding a 
48.17 	subdivision to read:
48.18 		Subd. 12.Instruction location. Instruction must be given within a licensed school 
48.19 	building. Online instruction is permitted for board-approved theory-based classes. 
48.20 	Practice-based classes must not be given online.

48.21 	Sec. 30. [155A.355] PROHIBITED USES.
48.22 		Subdivision 1.Single-use equipment and materials.  Single-use equipment, 
48.23 	implements, or materials that are made or constructed of paper, wood, or other porous 
48.24 	materials must only be used for one application or client service. Presence of used articles 
48.25 	in the work area is prima facie evidence of reuse. Failure to dispose of the materials in this 
48.26 	subdivision is punishable by penalty under section 155A.25, subdivision 1a, paragraph 
48.27 	(b), clause (7).
48.28 		Subd. 2.Skin-cutting equipment.  Razor-type callus shavers, rasps, or graters 
48.29 	designed and intended to cut growths of skin such as corns and calluses, including but not 
48.30 	limited to credo blades, are prohibited. Presence of these articles in the work area is prima 
48.31 	facie evidence of use and is punishable by penalty in section 155A.25, subdivision 1a, 
48.32 	paragraph (b), clause (8).
49.1 		Subd. 3.Substances.  Licensees must not use any of the following substances or 
49.2 	products in performing cosmetology services:
49.3 	(1) methyl methacrylate liquid monomers, also known as MMA; and
49.4 	(2) fumigants, including but not limited to formalin tablets or formalin liquids.

49.5 	Sec. 31. Minnesota Statutes 2012, section 326A.04, subdivision 2, is amended to read:
49.6 		Subd. 2.Timing. (a) Certificates must be initially issued and renewed for periods of 
49.7 	not more than three years annually but in any event must expire on December 31 in the year 
49.8 	prescribed by the board by rule. Applications for certificates must be made in the form, and 
49.9 	in the case of applications for renewal between the dates, specified by the board in rule. 
49.10 	The board shall grant or deny an application no later than 90 days after the application is 
49.11 	filed in proper form. If the applicant seeks the opportunity to show that issuance or renewal 
49.12 	of a certificate was mistakenly denied, or if the board is unable to determine whether it 
49.13 	should be granted or denied, the board may issue to the applicant a provisional certificate 
49.14 	that expires 90 days after its issuance, or when the board determines whether or not to 
49.15 	issue or renew the certificate for which application was made, whichever occurs first.
49.16 	(b) Certificate holders who do not provide professional services and do not use the 
49.17 	certified public accountant designation in any manner are not required to renew their 
49.18 	certificates provided they have notified the board as provided in board rule and comply 
49.19 	with the requirements for nonrenewal as specified in board rule.
49.20 	(c) Applications for renewal of a certificate that are complete and timely filed with 
49.21 	the board and are not granted or denied by the board before January 1 are renewed on a 
49.22 	provisional basis as of January 1 and for 90 days thereafter, or until the board grants or 
49.23 	denies the renewal of the certificate, whichever occurs first, provided the licensee meets 
49.24 	the requirements in this chapter and rules adopted by the board.

49.25 	EFFECTIVE DATE. This section is effective for licenses issued or renewed after 
49.26 	January 1, 2014.

49.27 	Sec. 32. Minnesota Statutes 2012, section 326A.04, subdivision 3, is amended to read:
49.28 		Subd. 3.Residents of other states. (a) With regard to an applicant who must 
49.29 	obtain a certificate in this state because the applicant does not qualify under the substantial 
49.30 	equivalency standard in section 326A.14, subdivision 1, the board shall issue a certificate 
49.31 	to a holder of a certificate, license, or permit issued by another state upon a showing that:
49.32 	(1) the applicant passed the examination required for issuance of a certificate in 
49.33 	this state;
50.1 	(2) the applicant had four years of experience of the type described in section 
50.2 	326A.03, subdivision 6, paragraph (b), if application is made on or after July 1, 2006, 
50.3 	or section 326A.03, subdivision 8, if application is made before July 1, 2006; or the 
50.4 	applicant meets equivalent requirements prescribed by the board by rule, after passing 
50.5 	the examination upon which the applicant's certificate was based and within the ten years 
50.6 	immediately preceding the application;
50.7 	(3) if the applicant's certificate, license, or permit was issued more than four years 
50.8 	prior to the application for issuance of an initial certificate under this subdivision, that the 
50.9 	applicant has fulfilled the requirements of continuing professional education that would 
50.10 	have been applicable under subdivision 4; and
50.11 	(4) the applicant has met the qualifications prescribed by the board by rule.
50.12 	(b) A certificate holder licensed by another state who establishes a principal place 
50.13 	of business in this state shall request the issuance of a certificate from the board prior to 
50.14 	establishing the principal place of business. The board shall issue a certificate to the person 
50.15 	if the person's individual certified public accountant qualifications, upon verification, are 
50.16 	substantially equivalent to the certified public accountant licensure requirements of this 
50.17 	chapter or the person meets equivalent requirements as the board prescribes by rule. 
50.18 	Residents of this state who provide professional services in this state at an office location 
50.19 	in this state shall be considered to have their principal place of business in this state.

50.20 	Sec. 33. Minnesota Statutes 2012, section 326A.04, subdivision 5, is amended to read:
50.21 		Subd. 5.Fee. (a) The board shall charge a fee for each application for initial 
50.22 	issuance or renewal of a certificate under this section.
50.23 	(b) The board shall annually establish a fee schedule not to exceed the following 
50.24 	amounts:
50.25 	(1) initial issuance of certificate, $150;
50.26 	(2) renewal of certificate with an active status, $100 per year;
50.27 	(3) initial CPA firm permits, except for sole practitioners, $100;
50.28 	(4) renewal of CPA firm permits, except for sole practitioners and those firms 
50.29 	specified in clause (17), $35 per year;
50.30 	(5) initial issuance and renewal of CPA firm permits for sole practitioners, except for 
50.31 	those firms specified in clause (17), $35 per year;
50.32 	(6) annual late processing delinquency fee for permit, certificate, or registration 
50.33 	renewal applications not received prior to expiration date, $50;
50.34 	(7) copies of records, per page, 25 cents;
51.1 	(8) registration of noncertificate holders, nonlicensees, and nonregistrants in 
51.2 	connection with renewal of firm permits, $45 per year;
51.3 	(9) applications for reinstatement, $20;
51.4 	(10) initial registration of a registered accounting practitioner, $50;
51.5 	(11) initial registered accounting practitioner firm permits, $100;
51.6 	(12) renewal of registered accounting practitioner firm permits, except for sole 
51.7 	practitioners, $100 per year;
51.8 	(13) renewal of registered accounting practitioner firm permits for sole practitioners, 
51.9 	$35 per year;
51.10 	(14) CPA examination application, $40;
51.11 	(15) CPA examination, fee determined by third-party examination administrator;
51.12 	(16) renewal of certificates with an inactive status, $25 per year; and
51.13 	(17) renewal of CPA firm permits for firms that have one or more offices located in 
51.14 	another state, $68 per year.

51.15 	Sec. 34. Minnesota Statutes 2012, section 326A.04, subdivision 7, is amended to read:
51.16 		Subd. 7.Certificates issued by foreign countries. The board shall issue a 
51.17 	certificate to a holder of a generally equivalent foreign country designation, provided that:
51.18 	(1) the foreign authority that granted the designation makes similar provision to 
51.19 	allow a person who holds a valid certificate issued by this state to obtain the foreign 
51.20 	authority's comparable designation;
51.21 	(2) the foreign designation:
51.22 	(i) was duly issued by a foreign authority that regulates the practice of public 
51.23 	accountancy and the foreign designation has not expired or been revoked or suspended;
51.24 	(ii) entitles the holder to issue reports upon financial statements; and
51.25 	(iii) was issued upon the basis of educational, examination, and experience 
51.26 	requirements established by the foreign authority or by law; and
51.27 	(3) the applicant:
51.28 	(i) received the designation, based on educational and examination standards 
51.29 	generally equivalent to those in effect in this state, at the time the foreign designation 
51.30 	was granted;
51.31 	(ii) has, within the ten years immediately preceding the application, completed an 
51.32 	experience requirement that is generally equivalent to the requirement in section 326A.03, 
51.33 	subdivision 6, paragraph (b), if application is made on or after July 1, 2006, or section 
51.34 	326A.03, subdivision 8, if application is made before July 1, 2006, in the jurisdiction that 
52.1 	granted the foreign designation; completed four years of professional experience in this 
52.2 	state; or met equivalent requirements prescribed by the board by rule; and
52.3 	(iii) passed a uniform qualifying examination in national standards and an 
52.4 	examination on the laws, regulations, and code of ethical conduct in effect in this state 
52.5 	as the board prescribes by rule.

52.6 	Sec. 35. Minnesota Statutes 2012, section 326A.10, is amended to read:
52.7 	326A.10 UNLAWFUL ACTS.
52.8 	(a) Only a licensee and individuals who have been granted practice privileges 
52.9 	under section 326A.14 may issue a report on financial statements of any person, firm, 
52.10 	organization, or governmental unit that results from providing attest services, or offer to 
52.11 	render or render any attest service. Only a certified public accountant, an individual who 
52.12 	has been granted practice privileges under section 326A.14, a CPA firm, or, to the extent 
52.13 	permitted by board rule, a person registered under section 326A.06, paragraph (b), may 
52.14 	issue a report on financial statements of any person, firm, organization, or governmental 
52.15 	unit that results from providing compilation services or offer to render or render any 
52.16 	compilation service. These restrictions do not prohibit any act of a public official or 
52.17 	public employee in the performance of that person's duties or prohibit the performance 
52.18 	by any nonlicensee of other services involving the use of accounting skills, including 
52.19 	the preparation of tax returns, management advisory services, and the preparation of 
52.20 	financial statements without the issuance of reports on them. Nonlicensees may prepare 
52.21 	financial statements and issue nonattest transmittals or information on them which do not 
52.22 	purport to be in compliance with the Statements on Standards for Accounting and Review 
52.23 	Services (SSARS). Nonlicensees registered under section 326A.06, paragraph (b), may, 
52.24 	to the extent permitted by board rule, prepare financial statements and issue nonattest 
52.25 	transmittals or information on them.
52.26 	(b) Licensees and individuals who have been granted practice privileges under 
52.27 	section 326A.14 performing attest or compilation services must provide those services in 
52.28 	accordance with professional standards. To the extent permitted by board rule, registered 
52.29 	accounting practitioners performing compilation services must provide those services in 
52.30 	accordance with standards specified in board rule.
52.31 	(c) A person who does not hold a valid certificate issued under section 326A.04 
52.32 	or a practice privilege granted under section 326A.14 shall not use or assume the title 
52.33 	"certified public accountant," the abbreviation "CPA," or any other title, designation, 
52.34 	words, letters, abbreviation, sign, card, or device tending to indicate that the person is a 
52.35 	certified public accountant.
53.1 	(d) A firm shall not provide attest services or assume or use the title "certified public 
53.2 	accountants," the abbreviation "CPA's," or any other title, designation, words, letters, 
53.3 	abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless 
53.4 	(1) the firm has complied with section 326A.05, and (2) ownership of the firm is in 
53.5 	accordance with this chapter and rules adopted by the board.
53.6 	(e) A person or firm that does not hold a valid certificate or permit issued under 
53.7 	section 326A.04 or 326A.05 or has not otherwise complied with section 326A.04 or 
53.8 	326A.05 as required in this chapter shall not assume or use the title "certified accountant," 
53.9 	"chartered accountant," "enrolled accountant," "licensed accountant," "registered 
53.10 	accountant," "accredited accountant," "accounting practitioner," "public accountant," 
53.11 	"licensed public accountant," or any other title or designation likely to be confused 
53.12 	with the title "certified public accountant," or use any of the abbreviations "CA," "LA," 
53.13 	"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the 
53.14 	abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals 
53.15 	so designated by the Internal Revenue Service.
53.16 	(f) Persons registered under section 326A.06, paragraph (b), may use the title 
53.17 	"registered accounting practitioner" or the abbreviation "RAP." A person who does not 
53.18 	hold a valid registration under section 326A.06, paragraph (b), shall not assume or use 
53.19 	such title or abbreviation.
53.20 	(g) Except to the extent permitted in paragraph (a), nonlicensees may not use 
53.21 	language in any statement relating to the financial affairs of a person or entity that is 
53.22 	conventionally used by licensees in reports on financial statements. In this regard, the 
53.23 	board shall issue by rule safe harbor language that nonlicensees may use in connection 
53.24 	with such financial information. A person or firm that does not hold a valid certificate or 
53.25 	permit, or a registration issued under section 326A.04, 326A.05, or 326A.06, paragraph 
53.26 	(b), or has not otherwise complied with section 326A.04 or 326A.05 as required in this 
53.27 	chapter shall not assume or use any title or designation that includes the word "accountant" 
53.28 	or "accounting" in connection with any other language, including the language of a report, 
53.29 	that implies that the person or firm holds such a certificate, permit, or registration or has 
53.30 	special competence as an accountant. A person or firm that does not hold a valid certificate 
53.31 	or permit issued under section 326A.04 or 326A.05 or has not otherwise complied with 
53.32 	section 326A.04 or 326A.05 as required in this chapter shall not assume or use any title 
53.33 	or designation that includes the word "auditor" in connection with any other language, 
53.34 	including the language of a report, that implies that the person or firm holds such a 
53.35 	certificate or permit or has special competence as an auditor. However, this paragraph 
53.36 	does not prohibit any officer, partner, member, manager, or employee of any firm or 
54.1 	organization from affixing that person's own signature to any statement in reference to the 
54.2 	financial affairs of such firm or organization with any wording designating the position, 
54.3 	title, or office that the person holds, nor prohibit any act of a public official or employee in 
54.4 	the performance of the person's duties as such.
54.5 	(h)(1) No person holding a certificate or registration or firm holding a permit under 
54.6 	this chapter shall use a professional or firm name or designation that is misleading about 
54.7 	the legal form of the firm, or about the persons who are partners, officers, members, 
54.8 	managers, or shareholders of the firm, or about any other matter. However, names of one 
54.9 	or more former partners, members, managers, or shareholders may be included in the 
54.10 	name of a firm or its successor.
54.11 	(2) A common brand name or network name part, including common initials, 
54.12 	used by a CPA firm in its name, is not misleading if the firm is a network firm as 
54.13 	defined in the American Institute of Certified Public Accountants (AICPA) Code of 
54.14 	Professional Conduct in effect July 1, 2011, and when offering or rendering services that 
54.15 	require independence under AICPA standards, the firm complies with the AICPA code's 
54.16 	applicable standards on independence.
54.17 	(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification, 
54.18 	designation, degree, or license granted in a foreign country entitling the holder to engage 
54.19 	in the practice of public accountancy or its equivalent in that country, if:
54.20 	(1) the activities of the person or firm in this state are limited to the provision of 
54.21 	professional services to persons or firms who are residents of, governments of, or business 
54.22 	entities of the country in which the person holds the entitlement;
54.23 	(2) the person or firm performs no attest or compilation services and issues no reports 
54.24 	with respect to the financial statements of any other persons, firms, or governmental 
54.25 	units in this state; and
54.26 	(3) the person or firm does not use in this state any title or designation other than 
54.27 	the one under which the person practices in the foreign country, followed by a translation 
54.28 	of the title or designation into English, if it is in a different language, and by the name 
54.29 	of the country.
54.30 	(j) No holder of a certificate issued under section 326A.04 may perform attest services 
54.31 	through any business form that does not hold a valid permit issued under section 326A.05.
54.32 	(k) No individual licensee may issue a report in standard form upon a compilation 
54.33 	of financial information through any form of business that does not hold a valid permit 
54.34 	issued under section 326A.05, unless the report discloses the name of the business through 
54.35 	which the individual is issuing the report, and the individual:
55.1 	(1) signs the compilation report identifying the individual as a certified public 
55.2 	accountant;
55.3 	(2) meets the competency requirement provided in applicable standards; and
55.4 	(3) undergoes no less frequently than once every three years, a peer review 
55.5 	conducted in a manner specified by the board in rule, and the review includes verification 
55.6 	that the individual has met the competency requirements set out in professional standards 
55.7 	for such services.
55.8 	(l) No person registered under section 326A.06, paragraph (b), may issue a report 
55.9 	in standard form upon a compilation of financial information unless the board by rule 
55.10 	permits the report and the person:
55.11 	(1) signs the compilation report identifying the individual as a registered accounting 
55.12 	practitioner;
55.13 	(2) meets the competency requirements in board rule; and
55.14 	(3) undergoes no less frequently than once every three years a peer review conducted 
55.15 	in a manner specified by the board in rule, and the review includes verification that the 
55.16 	individual has met the competency requirements in board rule.
55.17 	(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from 
55.18 	preparing or presenting records or documents customarily prepared by an attorney or firm 
55.19 	of attorneys in connection with the attorney's professional work in the practice of law.
55.20 	(n) The board shall adopt rules that place limitations on receipt by a licensee or a 
55.21 	person who holds a registration under section 326A.06, paragraph (b), of:
55.22 	(1) contingent fees for professional services performed; and
55.23 	(2) commissions or referral fees for recommending or referring to a client any 
55.24 	product or service.
55.25 	(o) Anything in this section to the contrary notwithstanding, it shall not be a violation 
55.26 	of this section for a firm not holding a valid permit under section 326A.05 and not having 
55.27 	an office in this state to provide its professional services in this state so long as it complies 
55.28 	with the applicable requirements of section 326A.05, subdivision 1.

55.29 	Sec. 36. GOOD CAUSE EXEMPTION.
 55.30 	The Board of Cosmetology may amend Minnesota Rules so that they conform with 
55.31 	this act. The Board of Cosmetology may use the good cause exemption under Minnesota 
55.32 	Statutes, section 14.388, subdivision 1, clause (3), in adopting the amendment, and 
55.33 	Minnesota Statutes, section 14.386, does not apply, except as it relates to Minnesota 
55.34 	Statutes, section 14.388.

56.1 	Sec. 37. REVISOR'S INSTRUCTION.
 56.2 	The revisor of statutes shall change the term "manicurist" to "nail technician" 
56.3 	wherever it appears in Minnesota Rules and Minnesota Statutes.

56.4 	Sec. 38.  REPEALER.
 56.5 	(a) Minnesota Statutes 2012, sections 155A.25, subdivision 1; and 326A.03, 
56.6 	subdivisions 2, 5, and 8, are repealed.
56.7 	(b) Minnesota Rules, parts 1105.0600; 1105.2550; and 1105.2700, are repealed.

56.8 	ARTICLE 5
56.9 	MILITARY AND VETERANS PROVISIONS

56.10 	Section 1. Minnesota Statutes 2012, section 192.26, is amended to read:
56.11 	192.26 STATE AND MUNICIPAL OFFICERS AND EMPLOYEES NOT TO 
56.12 	LOSE PAY WHILE ON  AUTHORIZED LEAVE FOR MILITARY DUTY.
56.13 		Subdivision 1.Authorized leave. Subject to the conditions hereinafter prescribed, 
56.14 	any officer or employee of the state or of any political subdivision, municipal corporation, 
56.15 	or other public agency of the state who shall be a member of the National Guard, or any 
56.16 	other component of the militia of the state now or hereafter organized or constituted 
56.17 	under state or federal law, or who shall be a member of the officers' reserve corps, the 
56.18 	enlisted reserve corps, the Naval Reserve, the Marine Corps reserve, or any other reserve 
56.19 	component of the military or naval forces of the United States now or hereafter organized 
56.20 	or constituted under federal law, shall be entitled to leave of absence from the public 
56.21 	office or employment without loss of pay, seniority status, efficiency rating, vacation, 
56.22 	sick leave, or other benefits for all the time when engaged with such organization or 
56.23 	component in training or active service ordered or authorized by proper authority pursuant 
56.24 	to law, whether for state or federal purposes, but not exceeding a total of 15 days in any 
56.25 	calendar year. The state or political subdivision, municipal corporation, or other public 
56.26 	agency shall allow the officer or employee to choose when during the calendar year to 
56.27 	take the 15 days of paid military leave. The officer or employee may choose to use all of 
56.28 	the 15 days of paid military leave at one time or, in the alternative, the 15 days of paid 
56.29 	military leave may be divided and taken throughout the calendar year at the discretion of 
56.30 	the officer or employee. Such leave shall be allowed only in case the required military or 
56.31 	naval service is satisfactorily performed, which shall be presumed unless the contrary is 
56.32 	established. Such leave shall not be allowed unless the officer or employee (1) returns to 
56.33 	the public position immediately on being relieved from such military or naval service and 
57.1 	not later than the expiration of the time herein limited for such leave, or (2) is prevented 
57.2 	from so returning by physical or mental disability or other cause not due to the officer's or 
57.3 	employee's own fault, or (3) is required by proper authority to continue in such military or 
57.4 	naval service beyond the time herein limited for such leave.

57.5 	Sec. 2. Minnesota Statutes 2012, section 197.608, subdivision 1, is amended to read:
57.6 		Subdivision 1.Grant program. A veterans service office grant program is 
57.7 	established to be administered by the commissioner of veterans affairs consisting of grants 
57.8 	to counties to enable them to enhance the effectiveness of their veterans service offices.
57.9 	 "Commissioner" as used in this section means the commissioner of veterans affairs.

57.10 	Sec. 3. Minnesota Statutes 2012, section 197.608, subdivision 3, is amended to read:
57.11 		Subd. 3.Eligibility. (a) To be eligible for a grant under this program subdivision 6, 
57.12 	a county must employ a county veterans service officer as authorized by sections 197.60
57.13 	and 197.606, who is certified to serve in this position by the commissioner.
57.14 	(b) A county that employs a newly hired county veterans service officer who is 
57.15 	serving an initial probationary period and who has not been certified by the commissioner 
57.16 	is eligible to receive a grant under subdivision 2a 6 for one year from the date the county 
57.17 	veterans service officer is appointed.
57.18 	(c) Except for the situation described in paragraph (b), A county whose county 
57.19 	veterans service officer does not receive certification during any year of the three-year 
57.20 	cycle is not eligible to receive a grant during the remainder of that cycle or the next 
57.21 	three-year cycle by the end of the first year of the county veterans service officer's 
57.22 	appointment is ineligible for the grant under subdivision 6 until the county veterans 
57.23 	service officer receives certification.

57.24 	Sec. 4. Minnesota Statutes 2012, section 197.608, subdivision 4, is amended to read:
57.25 		Subd. 4.Grant process. (a) The commissioner shall determine the process for 
57.26 	awarding grants. A grant may be used only for the purpose of enhancing the operations of 
57.27 	the County Veterans Service Office.
57.28 	(b) The commissioner shall provide a list of qualifying uses for grant expenditures 
57.29 	as developed in subdivision 5 and shall approve a grant under subdivision 6 only for a 
57.30 	qualifying use and if there are sufficient funds remaining in the grant program to cover the 
57.31 	full amount of the grant.
57.32 	(c) The commissioner is authorized to use any unexpended funding for this program 
57.33 	to provide training and education for county veterans service officers.

58.1 	Sec. 5. Minnesota Statutes 2012, section 197.608, subdivision 5, is amended to read:
58.2 		Subd. 5.Qualifying uses. The commissioner shall consult with the Minnesota 
58.3 	Association of County Veterans Service Officers in developing a list of qualifying uses for 
58.4 	grants awarded under this program subdivision 6. 
58.5 	The commissioner is authorized to use any unexpended funding for this program to 
58.6 	provide training and education for county veterans service officers.

58.7 	Sec. 6. Minnesota Statutes 2012, section 197.608, subdivision 6, is amended to read:
58.8 		Subd. 6.Grant amount. (a) Each county is eligible to receive an annual grant of 
58.9 	$5,000 for the following purposes: 
58.10 	(1) to provide outreach to the county's veterans;
58.11 	(2) to assist in the reintegration of combat veterans into society;
58.12 	(3) to collaborate with other social service agencies, educational institutions, and 
58.13 	other community organizations for the purposes of enhancing services offered to veterans;
58.14 	(4) to reduce homelessness among veterans; and
58.15 	(5) to enhance the operations of the county veterans service office.
58.16 	(b) In addition to the grant amount in paragraph (a), each county is eligible to receive 
58.17 	an additional annual grant under this paragraph. The amount of each additional annual 
58.18 	grant must be determined by the commissioner and may not exceed:
58.19 	(1) $1,400 $0, if the county's veteran population is less than 1,000;
58.20 	(2) $2,800 $1,000, if the county's veteran population is 1,000 or more but less than 
58.21 	3,000;
58.22 	(3) $4,200 $2,000, if the county's veteran population is 3,000 or more but less then 
58.23 	10,000 than 4,999; or
58.24 	(4) $5,600 $5,000, if the county's veteran population is 10,000 5,000 or more. but 
58.25 	less than 9,999;
58.26 	(5) $7,500, if the county's veteran population is 10,000 or more but less than 19,999;
58.27 	(6) $10,000, if the county's veteran population is 20,000 or more but less than 
58.28 	29,999; or
58.29 	(7) $15,000, if the county's veteran population is 30,000 or more.
58.30 	(c) The Minnesota Association of County Veterans Service Officers is eligible to 
58.31 	receive an annual grant of $2,500. The grant shall be used for administrative costs of 
58.32 	the association, certification of mandated county veterans service officer training and 
58.33 	accreditation, and costs associated with reintegration services.
58.34 	The veteran population of each county shall be determined by the figure supplied by 
58.35 	the United States Department of Veterans Affairs, as adopted by the commissioner.

59.1 	Sec. 7. Minnesota Statutes 2012, section 197.791, subdivision 4, is amended to read:
59.2 		Subd. 4.Eligibility. (a) A person is eligible for educational assistance under this 
59.3 	section if:
59.4 	(1) the person is:
59.5 	(i) a veteran who is serving or has served honorably in any branch or unit of the 
59.6 	United States armed forces at any time on or after September 11, 2001;
59.7 	(ii) a nonveteran who has served honorably for a total of five years or more 
59.8 	cumulatively as a member of the Minnesota National Guard or any other active or reserve 
59.9 	component of the United States armed forces, and any part of that service occurred on or 
59.10 	after September 11, 2001;
59.11 	(iii) the surviving spouse or child of a person who has served in the military at any 
59.12 	time on or after September 11, 2001, and who has died as a direct result of that military 
59.13 	service, only if the surviving spouse or child is eligible to receive federal education 
59.14 	benefits under United States Code, title 38, chapter 33, as amended, or United States 
59.15 	Code, title 38, chapter 35, as amended; or
59.16 	(iv) the spouse or child of a person who has served in the military at any time on or 
59.17 	after September 11, 2001, and who has a total and permanent service-connected disability 
59.18 	as rated by the United States Veterans Administration, only if the spouse or child is 
59.19 	eligible to receive federal education benefits under United States Code, title 38, chapter 
59.20 	33, as amended, or United States Code, title 38, chapter 35, as amended; and
59.21 	(2) the person receiving the educational assistance is a Minnesota resident, as 
59.22 	defined in section 136A.101, subdivision 8; and
59.23 	(3) the person receiving the educational assistance:
59.24 	(i) is an undergraduate or graduate student at an eligible institution;
59.25 	(ii) is maintaining satisfactory academic progress as defined by the institution for 
59.26 	students participating in federal Title IV programs;
59.27 	(iii) is enrolled in an education program leading to a certificate, diploma, or degree 
59.28 	at an eligible institution;
59.29 	(iv) has applied for educational assistance under this section prior to the end of the 
59.30 	academic term for which the assistance is being requested;
59.31 	(v) is in compliance with child support payment requirements under section 
59.32 	136A.121, subdivision 2, clause (5); and
59.33 	(vi) has completed the Free Application for Federal Student Aid (FAFSA).
59.34 	(b) A person's eligibility terminates when the person becomes eligible for benefits 
59.35 	under section 135A.52.
60.1 	(c) To determine eligibility, the commissioner may require official documentation, 
60.2 	including the person's federal form DD-214 or other official military discharge papers; 
60.3 	correspondence from the United States Veterans Administration; birth certificate; marriage 
60.4 	certificate; proof of enrollment at an eligible institution; signed affidavits; proof of 
60.5 	residency; proof of identity; or any other official documentation the commissioner 
60.6 	considers necessary to determine eligibility.
60.7 	(d) The commissioner may deny eligibility or terminate benefits under this section 
60.8 	to any person who has not provided sufficient documentation to determine eligibility for 
60.9 	the program. An applicant may appeal the commissioner's eligibility determination or 
60.10 	termination of benefits in writing to the commissioner at any time. The commissioner 
60.11 	must rule on any application or appeal within 30 days of receipt of all documentation that 
60.12 	the commissioner requires. The decision of the commissioner regarding an appeal is final. 
60.13 	However, an applicant whose appeal of an eligibility determination has been rejected by 
60.14 	the commissioner may submit an additional appeal of that determination in writing to the 
60.15 	commissioner at any time that the applicant is able to provide substantively significant 
60.16 	additional information regarding the applicant's eligibility for the program. An approval 
60.17 	of an applicant's eligibility by the commissioner following an appeal by the applicant is 
60.18 	not retroactively effective for more than one year or the semester of the person's original 
60.19 	application, whichever is later.
60.20 	(e) Upon receiving an application with insufficient documentation to determine 
60.21 	eligibility, the commissioner must notify the applicant within 30 days of receipt of the 
60.22 	application that the application is being suspended pending receipt by the commissioner of 
60.23 	sufficient documentation from the applicant to determine eligibility.

60.24 	Sec. 8. Minnesota Statutes 2012, section 197.791, subdivision 5, is amended to read:
60.25 		Subd. 5.Benefit amount. (a) On approval by the commissioner of eligibility for 
60.26 	the program, the applicant shall be awarded, on a funds-available basis, the educational 
60.27 	assistance under the program for use at any time according to program rules at any 
60.28 	eligible institution.
60.29 	(b) The amount of educational assistance in any semester or term for an eligible 
60.30 	person must be determined by subtracting from the eligible person's cost of attendance the 
60.31 	amount the person received or was eligible to receive in that semester or term from:
60.32 	(1) the federal Pell Grant;
60.33 	(2) the state grant program under section 136A.121; and
60.34 	(3) any federal military or veterans educational benefits including but not limited 
60.35 	to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 
61.1 	vocational rehabilitation benefits, and any other federal benefits associated with the 
61.2 	person's status as a veteran, except veterans disability payments from the United States 
61.3 	Veterans Administration and payments made under the Veterans Retraining Assistance 
61.4 	Program (VRAP).
61.5 	(c) The amount of educational assistance for any eligible person who is a full-time 
61.6 	student must not exceed the following:
61.7 	(1) $1,000 per semester or term of enrollment;
61.8 	(2) $3,000 per state fiscal year; and
61.9 	(3) $10,000 in a lifetime.
61.10 	For a part-time student, the amount of educational assistance must not exceed 
61.11 	$500 per semester or term of enrollment. For the purpose of this paragraph, a part-time 
61.12 	undergraduate student is a student taking fewer than 12 credits or the equivalent for a 
61.13 	semester or term of enrollment and a part-time graduate student is a student considered 
61.14 	part time by the eligible institution the graduate student is attending. The minimum award 
61.15 	for undergraduate and graduate students is $50 per term.

61.16 	Sec. 9. [198.365] VETERANS HOME; BELTRAMI COUNTY.
61.17 		Subdivision 1.Establishment. The commissioner shall establish a veterans home in 
61.18 	Beltrami County to provide at least 70 beds for skilled nursing care in conformance with 
61.19 	licensing rules of the Department of Health.
61.20 		Subd. 2.Funding. The home must be purchased or built with funds, 65 percent 
61.21 	of which must be provided by the federal government, and 35 percent by state or other 
61.22 	funding sources, including local units of government, veterans' organizations, and 
61.23 	corporations or other business entities.
61.24 		Subd. 3.Support services. Upon request, the Department of Human Services shall 
61.25 	arrange for the extension of support services to the veterans home in Beltrami County 
61.26 	including, but not limited to, the provision of utilities, and kitchen and laundry services.

61.27 	Sec. 10. [349A.17] SPECIAL GAME; VETERANS.
61.28 		Subdivision 1.Game established. (a) The director shall establish a scratch-off 
61.29 	game with a theme and content chosen by the director. The available net proceeds from 
61.30 	the game are intended for the "Support Our Troops" account established under section 
61.31 	190.19, in the manner provided in this section. 
61.32 	(b) For the purposes of this section, "available net proceeds" means the net proceeds 
61.33 	credited to the general fund under section 349A.10, subdivision 5, that are attributed to 
61.34 	the game authorized under paragraph (a).
62.1 	(c) The director shall make the following reports to the commissioners of 
62.2 	management and budget and veterans affairs:
62.3 	(1) by July 1, 2013, an estimate of available net proceeds based on predicted sales;
62.4 	(2) on June 30, 2014, an estimate of available net proceeds based on actual sales to 
62.5 	date; and
62.6 	(3) on June 30, 2015, the actual total of available net proceeds.
62.7 		Subd. 2.Appropriation. On July 1, 2013, an amount equal to the estimated 
62.8 	available net proceeds of the special game as provided in subdivision 1, paragraph (c), 
62.9 	clause (1), is appropriated from the general fund to the commissioner of management and 
62.10 	budget for transfer to the Minnesota "Support Our Troops" account for the uses provided in 
62.11 	section 190.19, subdivision 2a. Notwithstanding section 190.19, subdivision 1, the transfer 
62.12 	is appropriated to the commissioner of veterans affairs. The commissioner shall adjust this 
62.13 	appropriation to reflect the additional reports required under subdivision 1, paragraph (c).

62.14 	Sec. 11.  REPEALER.
 62.15 	Minnesota Statutes 2012, section 197.608, subdivision 2a, is repealed.

62.16 	ARTICLE 6
62.17 	REVENUE DEPARTMENT

62.18 	Section 1. Minnesota Statutes 2012, section 16A.82, is amended to read:
62.19 	16A.82 TECHNOLOGY LEASE-PURCHASE APPROPRIATION.
62.20 	The following amounts are appropriated from the general fund to the commissioner 
62.21 	to make payments under a lease-purchase agreement as defined in section 16A.81 for 
62.22 	replacement of the state's accounting and procurement systems, provided that the state 
62.23 	is not obligated to continue such appropriation of funds or to make lease payments 
62.24 	in any future fiscal year.

62.25		Fiscal year 2010
	$2,828,038
	
62.26		Fiscal year 2011
	$3,063,950
	
62.27		Fiscal year 2012
	$8,967,850
	
62.28		Fiscal year 2013
	$8,968,950
	
62.29		Fiscal year 2014
	$8,970,850
	
62.30		Fiscal year 2015
	$8,971,150
	
62.31		Fiscal year 2016
	$8,966,450
	
62.32		Fiscal year 2017
	$8,967,500
	
62.33		Fiscal year 2018
	$8,970,750
	
62.34		Fiscal year 2019
	$8,968,500
	
63.1 	Of these appropriations, up to $2,000 per year may be used to pay the annual trustee 
63.2 	fees for the lease-purchase agreements authorized in this section and section 270C.145. 
63.3 	Any unexpended portions of this appropriation cancel to the general fund at the close of 
63.4 	each biennium. This section expires June 30, 2019.

63.5 	Sec. 2. Minnesota Statutes 2012, section 65B.84, subdivision 1, is amended to read:
63.6 		Subdivision 1.Program described; commissioner's duties; appropriation. (a) 
63.7 	The commissioner of commerce shall:
63.8 	(1) develop and sponsor the implementation of statewide plans, programs, and 
63.9 	strategies to combat automobile theft, improve the administration of the automobile theft 
63.10 	laws, and provide a forum for identification of critical problems for those persons dealing 
63.11 	with automobile theft;
63.12 	(2) coordinate the development, adoption, and implementation of plans, programs, 
63.13 	and strategies relating to interagency and intergovernmental cooperation with respect 
63.14 	to automobile theft enforcement;
63.15 	(3) annually audit the plans and programs that have been funded in whole or in part 
63.16 	to evaluate the effectiveness of the plans and programs and withdraw funding should the 
63.17 	commissioner determine that a plan or program is ineffective or is no longer in need 
63.18 	of further financial support from the fund;
63.19 	(4) develop a plan of operation including:
63.20 	(i) an assessment of the scope of the problem of automobile theft, including areas 
63.21 	of the state where the problem is greatest;
63.22 	(ii) an analysis of various methods of combating the problem of automobile theft;
63.23 	(iii) a plan for providing financial support to combat automobile theft;
63.24 	(iv) a plan for eliminating car hijacking; and
63.25 	(v) an estimate of the funds required to implement the plan; and
63.26 	(5) distribute money, in consultation with the commissioner of public safety, 
63.27 	pursuant to subdivision 3 from the automobile theft prevention special revenue account 
63.28 	for automobile theft prevention activities, including:
63.29 	(i) paying the administrative costs of the program;
63.30 	(ii) providing financial support to the State Patrol and local law enforcement 
63.31 	agencies for automobile theft enforcement teams;
63.32 	(iii) providing financial support to state or local law enforcement agencies for 
63.33 	programs designed to reduce the incidence of automobile theft and for improved 
63.34 	equipment and techniques for responding to automobile thefts;
64.1 	(iv) providing financial support to local prosecutors for programs designed to reduce 
64.2 	the incidence of automobile theft;
64.3 	(v) providing financial support to judicial agencies for programs designed to reduce 
64.4 	the incidence of automobile theft;
64.5 	(vi) providing financial support for neighborhood or community organizations or 
64.6 	business organizations for programs designed to reduce the incidence of automobile 
64.7 	theft and to educate people about the common methods of automobile theft, the models 
64.8 	of automobiles most likely to be stolen, and the times and places automobile theft is 
64.9 	most likely to occur; and
64.10 	(vii) providing financial support for automobile theft educational and training 
64.11 	programs for state and local law enforcement officials, driver and vehicle services exam 
64.12 	and inspections staff, and members of the judiciary.
64.13 	(b) The commissioner may not spend in any fiscal year more than ten percent of the 
64.14 	money in the fund for the program's administrative and operating costs. The commissioner 
64.15 	is annually appropriated and must distribute the amount of the proceeds credited to 
64.16 	the automobile theft prevention special revenue account each year, less the transfer 
64.17 	of $1,300,000 each year to the general fund described in section 168A.40, subdivision 
64.18 	4 297I.11, subdivision 2.

64.19 	EFFECTIVE DATE. This section is effective for premiums collected after June 
64.20 	30, 2013.

64.21 	Sec. 3. Minnesota Statutes 2012, section 270C.69, subdivision 1, is amended to read:
64.22 		Subdivision 1.Notice and procedures. (a) The commissioner may, within five years 
64.23 	after the date of assessment of the tax, or if a lien has been filed under section 270C.63, 
64.24 	within the statutory period for enforcement of the lien, give notice to any employer 
64.25 	deriving income which has a taxable situs in this state regardless of whether the income is 
64.26 	exempt from taxation, that an employee of that employer is delinquent in a certain amount 
64.27 	with respect to any taxes, including penalties, interest, and costs. The commissioner can 
64.28 	proceed under this section only if the tax is uncontested or if the time for appeal of the tax 
64.29 	has expired. The commissioner shall not proceed under this section until the expiration of 
64.30 	30 days after mailing to the taxpayer, at the taxpayer's last known address, a written notice 
64.31 	of (1) the amount of taxes, interest, and penalties due from the taxpayer and demand for 
64.32 	their payment, and (2) the commissioner's intention to require additional withholding by 
64.33 	the taxpayer's employer pursuant to this section. The effect of the notice shall expire one 
64.34 	year after it has been mailed to the taxpayer provided that the notice may be renewed by 
64.35 	mailing a new notice which is in accordance with this section. The renewed notice shall 
65.1 	have the effect of reinstating the priority of the original claim. The notice to the taxpayer 
65.2 	shall be in substantially the same form as that provided in section 571.72. The notice 
65.3 	shall further inform the taxpayer of the wage exemptions contained in section 550.37, 
65.4 	subdivision 14. If no statement of exemption is received by the commissioner within 30 
65.5 	days from the mailing of the notice, the commissioner may proceed under this section. 
65.6 	The notice to the taxpayer's employer may be served by mail or by delivery by an agent of 
65.7 	the department and shall be in substantially the same form as provided in section 571.75. 
65.8 	Upon receipt of notice, the employer shall withhold from compensation due or to become 
65.9 	due to the employee, the total amount shown by the notice, subject to the provisions of 
65.10 	section 571.922. The employer shall continue to withhold each pay period until the notice 
65.11 	is released by the commissioner under section 270C.7109. Upon receipt of notice by the 
65.12 	employer, the claim of the state of Minnesota shall have priority over any subsequent 
65.13 	garnishments or wage assignments. The commissioner may arrange between the employer 
65.14 	and the employee for withholding a portion of the total amount due the employee each pay 
65.15 	period, until the total amount shown by the notice plus accrued interest has been withheld.
65.16 	(b) The "compensation due" any employee is defined in accordance with the 
65.17 	provisions of section 571.921. The maximum withholding allowed under this section for 
65.18 	any one pay period shall be decreased by any amounts payable pursuant to a garnishment 
65.19 	action with respect to which the employer was served prior to being served with the notice 
65.20 	of delinquency and any amounts covered by any irrevocable and previously effective 
65.21 	assignment of wages; the employer shall give notice to the commissioner of the amounts 
65.22 	and the facts relating to such assignments within ten days after the service of the notice of 
65.23 	delinquency on the form provided by the commissioner as noted in this section.
65.24 	(c) Within ten days after the expiration of such pay period, the employer shall remit 
65.25 	to the commissioner, on a form and in the manner prescribed by the commissioner, the 
65.26 	amount withheld during each pay period under this section. The employer must file all 
65.27 	wage levy disclosure forms and remit all wage levy payments by electronic means.

65.28 	EFFECTIVE DATE. This section is effective for wage levy disclosures or wage 
65.29 	levy payments filed or made after December 31, 2013.

65.30 	Sec. 4. Minnesota Statutes 2012, section 289A.20, subdivision 2, is amended to read:
65.31 		Subd. 2.Withholding from wages, entertainer withholding, withholding 
65.32 	from payments to out-of-state contractors, and withholding by partnerships, small 
65.33 	business corporations, trusts. (a) A tax required to be deducted and withheld during the 
65.34 	quarterly period must be paid on or before the last day of the month following the close of 
65.35 	the quarterly period, unless an earlier time for payment is provided. A tax required to be 
66.1 	deducted and withheld from compensation of an entertainer and from a payment to an 
66.2 	out-of-state contractor must be paid on or before the date the return for such tax must be 
66.3 	filed under section 289A.18, subdivision 2. Taxes required to be deducted and withheld 
66.4 	by partnerships, S corporations, and trusts must be paid on a quarterly basis as estimated 
66.5 	taxes under section 289A.25 for partnerships and trusts and under section 289A.26 for S 
66.6 	corporations.
66.7 	(b) An employer who, during the previous quarter, withheld more than $1,500 of 
66.8 	tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax 
66.9 	withheld under those sections with the commissioner within the time allowed to deposit 
66.10 	the employer's federal withheld employment taxes under Code of Federal Regulations, 
66.11 	title 26, section 31.6302-1, as amended through December 31, 2001, without regard to the 
66.12 	safe harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). 
66.13 	Taxpayers must submit a copy of their federal notice of deposit status to the commissioner 
66.14 	upon request by the commissioner.
66.15 	(c) The commissioner may prescribe by rule other return periods or deposit 
66.16 	requirements. In prescribing the reporting period, the commissioner may classify payors 
66.17 	according to the amount of their tax liability and may adopt an appropriate reporting 
66.18 	period for the class that the commissioner judges to be consistent with efficient tax 
66.19 	collection. In no event will the duration of the reporting period be more than one year.
66.20 	(d) If less than the correct amount of tax is paid to the commissioner, proper 
66.21 	adjustments with respect to both the tax and the amount to be deducted must be made, 
66.22 	without interest, in the manner and at the times the commissioner prescribes. If the 
66.23 	underpayment cannot be adjusted, the amount of the underpayment will be assessed and 
66.24 	collected in the manner and at the times the commissioner prescribes.
66.25 	(e) If the aggregate amount of the tax withheld is:
66.26 	(1) $20,000 or more in the fiscal year ending June 30, 2005; or
66.27 	(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years 
66.28 	thereafter,
66.29 	the employer must remit each required deposit for wages paid in the all subsequent 
66.30 	calendar year years by electronic means.
66.31 	(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph 
66.32 	(a), clause (2), who remits withholding deposits must remit all deposits by electronic 
66.33 	means as provided in paragraph (e), regardless of the aggregate amount of tax withheld 
66.34 	during a fiscal year for all of the employers.

67.1 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
67.2 	2013, and all fiscal years thereafter.

67.3 	Sec. 5. Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read:
67.4 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and 
67.5 	payable to the commissioner monthly on or before the 20th day of the month following 
67.6 	the month in which the taxable event occurred, or following another reporting period 
67.7 	as the commissioner prescribes or as allowed under section 289A.18, subdivision 4, 
67.8 	paragraph (f) or (g), except that:
67.9 	(1) use taxes due on an annual use tax return as provided under section 289A.11, 
67.10 	subdivision 1, are payable by April 15 following the close of the calendar year; and
67.11 	(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 
67.12 	or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes 
67.13 	imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the 
67.14 	commissioner monthly in the following manner:
67.15 	(i) On or before the 14th day of the month following the month in which the taxable 
67.16 	event occurred, the vendor must remit to the commissioner 90 percent of the estimated 
67.17 	liability for the month in which the taxable event occurred.
67.18 	(ii) On or before the 20th day of the month in which the taxable event occurs, the 
67.19 	vendor must remit to the commissioner a prepayment for the month in which the taxable 
67.20 	event occurs equal to 67 percent of the liability for the previous month.
67.21 	(iii) On or before the 20th day of the month following the month in which the taxable 
67.22 	event occurred, the vendor must pay any additional amount of tax not previously remitted 
67.23 	under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than 
67.24 	the vendor's liability for the month in which the taxable event occurred, the vendor may 
67.25 	take a credit against the next month's liability in a manner prescribed by the commissioner.
67.26 	(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to 
67.27 	continue to make payments in the same manner, as long as the vendor continues having a 
67.28 	liability of $120,000 or more during the most recent fiscal year ending June 30.
67.29 	(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required 
67.30 	payment in the first month that the vendor is required to make a payment under either item 
67.31 	(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make 
67.32 	subsequent monthly payments in the manner provided in item (ii).
67.33 	(vi) For vendors making an accelerated payment under item (ii), for the first month 
67.34 	that the vendor is required to make the accelerated payment, on the 20th of that month, the 
68.1 	vendor will pay 100 percent of the liability for the previous month and a prepayment for 
68.2 	the first month equal to 67 percent of the liability for the previous month.
68.3 	(b) Notwithstanding paragraph (a), a vendor having a liability of $120,000 or more 
68.4 	during a fiscal year ending June 30 must remit the June liability for the next year in the 
68.5 	following manner:
68.6 	(1) Two business days before June 30 of the year, the vendor must remit 90 percent 
68.7 	of the estimated June liability to the commissioner.
68.8 	(2) On or before August 20 of the year, the vendor must pay any additional amount 
68.9 	of tax not remitted in June.
68.10 	(c) A vendor having a liability of:
68.11 	(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, 
68.12 	2009 2013, and fiscal years thereafter, must remit by electronic means all liabilities on 
68.13 	returns due for periods beginning in the all subsequent calendar year years on or before 
68.14 	the 20th day of the month following the month in which the taxable event occurred, or 
68.15 	on or before the 20th day of the month following the month in which the sale is reported 
68.16 	under section 289A.18, subdivision 4; or
68.17 	(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years 
68.18 	thereafter, must remit by electronic means all liabilities in the manner provided in 
68.19 	paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar 
68.20 	year, except for 90 percent of the estimated June liability, which is due two business days 
68.21 	before June 30. The remaining amount of the June liability is due on August 20.
68.22 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 
68.23 	religious beliefs from paying electronically shall be allowed to remit the payment by mail. 
68.24 	The filer must notify the commissioner of revenue of the intent to pay by mail before 
68.25 	doing so on a form prescribed by the commissioner. No extra fee may be charged to a 
68.26 	person making payment by mail under this paragraph. The payment must be postmarked 
68.27 	at least two business days before the due date for making the payment in order to be 
68.28 	considered paid on a timely basis.
68.29 	(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed 
68.30 	under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the 
68.31 	chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and 
68.32 	paid with the chapter 297A taxes, then the payment of all the liabilities on the return must 
68.33 	be accelerated as provided in this subdivision.
68.34 	(f) At the start of the first calendar quarter at least 90 days after the cash flow account 
68.35 	established in section 16A.152, subdivision 1, and the budget reserve account established in 
68.36 	section 16A.152, subdivision 1a, reach the amounts listed in section 16A.152, subdivision 
69.1 	2, paragraph (a), the remittance of the accelerated payments required under paragraph (a), 
69.2 	clause (2), must be suspended. The commissioner of management and budget shall notify 
69.3 	the commissioner of revenue when the accounts have reached the required amounts. 
69.4 	Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of 
69.5 	$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the 
69.6 	taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day 
69.7 	of the month following the month in which the taxable event occurred. Payments of tax 
69.8 	liabilities for taxable events occurring in June under paragraph (b) are not changed.

69.9 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
69.10 	2013, and all fiscal years thereafter.

69.11 	Sec. 6. Minnesota Statutes 2012, section 289A.26, subdivision 2a, is amended to read:
69.12 		Subd. 2a.Electronic payments. If the aggregate amount of estimated tax payments 
69.13 	made is:
69.14 	(1) $20,000 or more in the fiscal year ending June 30, 2005; or
69.15 	(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years 
69.16 	thereafter,
69.17 	all estimated tax payments in the all subsequent calendar year years must be paid by 
69.18 	electronic means.

69.19 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
69.20 	2013, and all fiscal years thereafter.

69.21 	Sec. 7. Minnesota Statutes 2012, section 295.55, subdivision 4, is amended to read:
69.22 		Subd. 4.Electronic payments. A taxpayer with an aggregate tax liability of:
69.23 	(1) $20,000 or more in the fiscal year ending June 30, 2005; or
69.24 	(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years 
69.25 	thereafter,
69.26 	must remit all liabilities by electronic means in the all subsequent calendar year years.

69.27 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
69.28 	2013, and all fiscal years thereafter.

69.29 	Sec. 8. Minnesota Statutes 2012, section 297F.09, subdivision 7, is amended to read:
70.1 		Subd. 7.Electronic payment. A cigarette or tobacco products distributor having a 
70.2 	liability of $10,000 or more during a fiscal year ending June 30 must remit all liabilities in 
70.3 	the all subsequent calendar year years by electronic means.

70.4 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
70.5 	2013, and all fiscal years thereafter.

70.6 	Sec. 9. Minnesota Statutes 2012, section 297G.09, subdivision 6, is amended to read:
70.7 		Subd. 6.Electronic payments. A licensed brewer, importer, or wholesaler having 
70.8 	an excise tax liability of $10,000 or more during a fiscal year ending June 30 must remit 
70.9 	all excise tax liabilities in the all subsequent calendar year years by electronic means.

70.10 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
70.11 	2013, and all fiscal years thereafter.

70.12 	Sec. 10. [297I.11] AUTOMOBILE THEFT PREVENTION SURCHARGE.
70.13 		Subdivision 1.Surcharge. Each insurer engaged in the writing of policies of 
70.14 	automobile insurance shall collect a surcharge, at the rate of 50 cents per vehicle 
70.15 	for every six months of coverage, on each policy of automobile insurance providing 
70.16 	comprehensive insurance coverage issued or renewed in this state. The surcharge may not 
70.17 	be considered premium for any purpose, including the computation of premium tax or 
70.18 	agents' commissions. The amount of the surcharge must be separately stated on either a 
70.19 	billing or policy declaration sent to an insured. Insurers shall remit the revenue derived 
70.20 	from this surcharge to the commissioner of revenue for purposes of the automobile theft 
70.21 	prevention program described in section 65B.84. For purposes of this subdivision, "policy 
70.22 	of automobile insurance" has the meaning given it in section 65B.14, covering only the 
70.23 	following types of vehicles as defined in section 168.002:
70.24 	(1) a passenger automobile;
70.25 	(2) a pickup truck;
70.26 	(3) a van but not commuter vans as defined in section 168.126; or
70.27 	(4) a motorcycle,
70.28 	except that no vehicle with a gross vehicle weight in excess of 10,000 pounds is included 
70.29 	within this definition.
70.30 		Subd. 2.Automobile theft prevention account. A special revenue account in 
70.31 	the state treasury shall be credited with the proceeds of the surcharge imposed under 
70.32 	subdivision 1. Of the revenue in the account, $1,300,000 each year must be transferred to 
71.1 	the general fund. Revenues in excess of $1,300,000 each year may be used only for the 
71.2 	automobile theft prevention program described in section 65B.84.
71.3 		Subd. 3.Collection and administration. The commissioner shall collect and 
71.4 	administer the surcharge imposed by this section in the same manner as the taxes imposed 
71.5 	by this chapter.

71.6 	EFFECTIVE DATE. This section is effective for premiums collected after June 
71.7 	30, 2013.

71.8 	Sec. 11. Minnesota Statutes 2012, section 297I.30, is amended by adding a subdivision 
71.9 	to read:
71.10 		Subd. 10.Automobile theft prevention surcharge. On or before May 1, August 
71.11 	1, November 1, and February 1 of each year, every insurer required to pay the surcharge 
71.12 	under section 297I.11 shall file a return with the commissioner for the preceding 
71.13 	three-month period ending March 31, June 30, September 30, and December 31, in the 
71.14 	form prescribed by the commissioner.

71.15 	EFFECTIVE DATE. This section is effective for premiums collected after June 
71.16 	30, 2013.

71.17 	Sec. 12. Minnesota Statutes 2012, section 297I.35, subdivision 2, is amended to read:
71.18 		Subd. 2.Electronic payments. If the aggregate amount of tax and surcharges due 
71.19 	under this chapter during a fiscal year ending June 30 is equal to or exceeds $10,000, or 
71.20 	if the taxpayer is required to make payment of any other tax to the commissioner by 
71.21 	electronic means, then all tax and surcharge payments in the all subsequent calendar year
71.22 	 years must be paid by electronic means.

71.23 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
71.24 	2013, and all fiscal years thereafter.

71.25 	Sec. 13. Minnesota Statutes 2012, section 473.843, subdivision 3, is amended to read:
71.26 		Subd. 3.Payment of fee. On or before the 20th day of each month each operator 
71.27 	shall pay the fee due under this section for the previous month, using a form provided 
71.28 	by the commissioner of revenue.
71.29 	An operator having a fee of $10,000 or more during a fiscal year ending June 30 
71.30 	must pay all fees in the all subsequent calendar year years by electronic means.

72.1 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
72.2 	2013, and all fiscal years thereafter.

72.3 	Sec. 14.  REPEALER.
 72.4 	(a) Minnesota Statutes 2012, section 168A.40, subdivisions 3 and 4, are repealed 
72.5 	effective for premiums collected after June 30, 2013.
72.6 	(b) Minnesota Statutes 2012, section 270C.145, is repealed the day following final 
72.7 	enactment.

72.8 	ARTICLE 7
72.9 	COMPENSATION COUNCIL

72.10 	Section 1. Minnesota Statutes 2012, section 3.099, subdivision 1, is amended to read:
72.11 		Subdivision 1.Salary; paydays; mileage; per diem. (a) The salary of each member 
72.12 	of the legislature is equal to 33 percent of the salary authorized for the governor. An increase 
72.13 	in the legislators' salaries resulting from an increase in the salary of the governor takes 
72.14 	effect at the first time authorized under the Minnesota Constitution, article IV, section 9.
72.15 	(b) The compensation of each member of the legislature is due on the first day of the 
72.16 	regular legislative session of the term and payable in equal parts on January 15, in the first 
72.17 	month of each term and on the first day of each following month during the term for which 
72.18 	the member was elected. The compensation of each member of the legislature elected 
72.19 	at a special election is due on the day the member takes the oath of office and payable 
72.20 	within ten days of taking the oath for the remaining part of the month in which the oath 
72.21 	was taken, and then in equal parts on the first day of each following month during the 
72.22 	term for which the member was elected.
72.23 	(c) Each member shall receive mileage for necessary travel to the place of meeting 
72.24 	and returning to the member's residence in the amount and for trips as authorized by the 
72.25 	senate for senate members and by the house of representatives for house members.
72.26 	(d) Each member shall also receive per diem living expenses during a regular or 
72.27 	special session of the legislature in the amounts and for the purposes as determined by the 
72.28 	senate for senate members and by the house of representatives for house members.
72.29 	(e) On January 15 in the first month of each term and on the first day of each following 
72.30 	month, the secretary of the senate and the chief clerk of the house of representatives 
72.31 	shall certify to the commissioner of management and budget, in duplicate, the amount of 
72.32 	compensation then payable to each member of their respective houses and its total.

73.1 	EFFECTIVE DATE. This section is effective January 5, 2015. Beginning on 
73.2 	January 5, 2015, the salaries of legislators are 33 percent of the salary of the governor on 
73.3 	January 1, 2015. Beginning January 1, 2016, the salaries of legislators are 33 percent of 
73.4 	the salary of the governor on January 1, 2016.

73.5 	Sec. 2. Minnesota Statutes 2012, section 3.855, subdivision 3, is amended to read:
73.6 		Subd. 3.Other salaries and compensation plans. The commission shall also:
73.7 	(1) review and approve, reject, or modify a plan for compensation and terms and 
73.8 	conditions of employment prepared and submitted by the commissioner of management 
73.9 	and budget under section 43A.18, subdivision 2, covering all state employees who are 
73.10 	not represented by an exclusive bargaining representative and whose compensation is not 
73.11 	provided for by chapter 43A or other law;
73.12 	(2) review and approve, reject, or modify a plan for total compensation and terms 
73.13 	and conditions of employment for employees in positions identified as being managerial 
73.14 	under section 43A.18, subdivision 3, whose salaries and benefits are not otherwise 
73.15 	provided for in law or other plans established under chapter 43A;
73.16 	(3) review and approve, reject, or modify recommendations for salaries submitted 
73.17 	by the governor or other an appointing authority other than the governor under section 
73.18 	15A.0815, subdivision 5, covering agency head positions listed in section 15A.0815;
73.19 	(4) review and approve, reject, or modify recommendations for salaries of officials 
73.20 	of higher education systems under section 15A.081, subdivisions 7b and 7c;
73.21 	(5) (4) review and approve, reject, or modify plans for compensation, terms, and 
73.22 	conditions of employment proposed under section 43A.18, subdivisions 3a, 3b, and 4; and
73.23 	(6) (5) review and approve, reject, or modify the plan for compensation, terms, and 
73.24 	conditions of employment of classified employees in the office of the legislative auditor 
73.25 	under section 3.971, subdivision 2.

73.26 	Sec. 3. [4.52] SALARY INCREASES.
73.27 	The salary of the governor must be adjusted annually on January 1. The new salary 
73.28 	must equal the salary for the prior year, increased by the percentage increase, if any, in 
73.29 	the Consumer Price Index for all urban consumers from October of the second prior year 
73.30 	to October of the immediately prior year. The commissioner of management and budget 
73.31 	must publish the salary on the department's Web site.

73.32 	Sec. 4. Minnesota Statutes 2012, section 15A.0815, subdivision 1, is amended to read:
74.1 		Subdivision 1.Salary limits. The governor or other appropriate appointing 
74.2 	authority shall set the salary rates for positions listed in this section within the salary limits 
74.3 	listed in subdivisions 2 to 4,. If the appointing authority is not the governor, the appointing 
74.4 	authority's action is subject to approval of the Legislative Coordinating Commission and the 
74.5 	legislature as provided by subdivision 5 and sections 3.855 and 15A.081, subdivision 7b.

74.6 	Sec. 5. Minnesota Statutes 2012, section 15A.0815, subdivision 2, is amended to read:
74.7 		Subd. 2.Group I salary limits. The salaries for positions in this subdivision may 
74.8 	not exceed 95 percent of the salary of the governor: The salary for a position listed in this 
74.9 	subdivision shall not exceed 133 percent of the salary of the governor. This subdivision 
74.10 	applies to the following positions:
74.11 	Commissioner of administration;
74.12 	Commissioner of agriculture;
74.13 	Commissioner of education;
74.14 	Commissioner of commerce;
74.15 	Commissioner of corrections;
74.16 	Commissioner of health;
74.17 	Executive director, Minnesota Office of Higher Education;
74.18 	Commissioner, Housing Finance Agency;
74.19 	Commissioner of human rights;
74.20 	Commissioner of human services;
74.21 	Commissioner of labor and industry;
74.22 	Commissioner of management and budget;
74.23 	Commissioner of natural resources;
74.24 	Director of Office of Strategic and Long-Range Planning;
74.25 	Commissioner, Pollution Control Agency;
74.26 	Executive director, Public Employees Retirement Association;
74.27 	Commissioner of public safety;
74.28 	Commissioner of revenue;
74.29 	Executive director, State Retirement System;
74.30 	Executive director, Teachers Retirement Association;
74.31 	Commissioner of employment and economic development;
74.32 	Commissioner of transportation; and
74.33 	Commissioner of veterans affairs.

74.34 	Sec. 6. Minnesota Statutes 2012, section 15A.0815, subdivision 3, is amended to read:
75.1 		Subd. 3.Group II salary limits. The salaries for positions in this subdivision may 
75.2 	not exceed 85 percent of the salary of the governor. The salary for a position listed in this 
75.3 	subdivision shall not exceed 120 percent of the salary of the governor. This subdivision 
75.4 	applies to the following positions:
75.5 	Executive director of Gambling Control Board;
75.6 	Commissioner, Iron Range Resources and Rehabilitation Board;
75.7 	Commissioner, Bureau of Mediation Services;
75.8 	Ombudsman for Mental Health and Developmental Disabilities;
75.9 	Chair, Metropolitan Council;
75.10 	School trust lands director;
75.11 	Executive director of pari-mutuel racing; and
75.12 	Commissioner, Public Utilities Commission.

75.13 	Sec. 7. Minnesota Statutes 2012, section 15A.0815, subdivision 5, is amended to read:
75.14 		Subd. 5.Appointing authorities to recommend certain salaries. (a) When 
75.15 	the governor is the appointing authority, the governor, or other appropriate appointing 
75.16 	authority, may submit to the Legislative Coordinating Commission recommendations for
75.17 	 must establish salaries within the salary limits for the positions listed in subdivisions 
75.18 	2 to 4. An appointing authority may also propose additions or deletions of positions 
75.19 	from those listed. Before establishing a salary, the governor must consult with the 
75.20 	commissioner of management and budget concerning the salary. In establishing the salary, 
75.21 	the governor shall consider the criteria established in section 43A.18, subdivision 8, and 
75.22 	the performance of individual incumbents. The performance evaluation must include a 
75.23 	review of an incumbent's progress toward attainment of affirmative action goals. The 
75.24 	governor shall establish an objective system for quantifying knowledge, abilities, duties, 
75.25 	responsibilities, and accountabilities, and in determining recommendations rate each 
75.26 	position by this system.
75.27 	(b) An appointing authority other than the governor may submit to the Legislative 
75.28 	Coordinating Commission recommendations for salaries within the salary limits for the 
75.29 	positions listed in subdivisions 2 to 4.
75.30 	(b) Before submitting the recommendations, the appointing authority shall consult 
75.31 	with the commissioner of management and budget concerning the recommendations.
75.32 	(c) In making recommendations, the appointing authority shall consider the 
75.33 	criteria established in section 43A.18, subdivision 8, and the performance of individual 
75.34 	incumbents. The performance evaluation must include a review of an incumbent's progress 
75.35 	toward attainment of affirmative action goals. The appointing authority shall establish 
76.1 	an objective system for quantifying knowledge, abilities, duties, responsibilities, and 
76.2 	accountabilities, and in determining recommendations, rate each position by this system.
76.3 	(d) Before the appointing authority's recommended salaries take effect, the 
76.4 	recommendations must be reviewed and approved, rejected, or modified by the Legislative 
76.5 	Coordinating Commission and the legislature under section 3.855, subdivisions 2 and 
76.6 	3. If, when the legislature is not in session, the commission fails to reject or modify 
76.7 	salary recommendations of the governor within 30 calendar days of their receipt, the 
76.8 	recommendations are deemed to be approved.
76.9 	(c) The governor or other appointing authority may propose additions or deletions of 
76.10 	positions from those listed in subdivisions 2 to 4.
76.11 	(e) (d) The governor or other appointing authority shall set the initial salary of a 
76.12 	head of a new agency or a chair of a new metropolitan board or commission whose salary 
76.13 	is not specifically prescribed by law after consultation with the commissioner, whose 
76.14 	recommendation is advisory only. The amount of the new salary must be comparable to the 
76.15 	salary of an agency head or commission chair having similar duties and responsibilities.
76.16 	(f) (e) The salary of a newly appointed head of an agency or chair of a metropolitan 
76.17 	agency listed in subdivisions 2 to 4 who is appointed by someone other than the governor, 
76.18 	may be increased or decreased by the appointing authority from the salary previously 
76.19 	set for that position within 30 days of the new appointment after consultation with 
76.20 	the commissioner. If the appointing authority increases a salary under this paragraph, 
76.21 	the appointing authority shall submit the new salary to the Legislative Coordinating 
76.22 	Commission and the full legislature for approval, modification, or rejection under section 
76.23 	3.855, subdivisions 2 and 3. If, when the legislature is not in session, the commission fails 
76.24 	to reject or modify salary recommendations of the governor within 30 calendar days of 
76.25 	their receipt, the recommendations are deemed to be approved.

76.26 	Sec. 8. Minnesota Statutes 2012, section 15A.082, subdivision 2, is amended to read:
76.27 		Subd. 2.Membership. The Compensation Council consists of 16 members: two 
76.28 	members of the house of representatives appointed by the speaker of the house, who are 
76.29 	not members of the legislature; two members of the senate appointed by the majority 
76.30 	leader of the senate, who are not members of the legislature; one member of the house 
76.31 	of representatives appointed by the minority leader of the house of representatives, who 
76.32 	is not a member of the legislature; one member of the senate appointed by the minority 
76.33 	leader of the senate, who is not a member of the legislature; two nonjudges appointed by 
76.34 	the chief justice of the Supreme Court; and one member from each congressional district 
76.35 	appointed by the governor, of whom no more than four may belong to the same political 
77.1 	party. Appointments must be made by October 1. The compensation and removal of 
77.2 	members appointed by the governor or the chief justice shall be as provided in section 
77.3 	15.059, subdivisions 3 and 4. The Legislative Coordinating Commission shall provide the 
77.4 	council with administrative and support services.

77.5 	Sec. 9. Minnesota Statutes 2012, section 43A.17, subdivision 1, is amended to read:
77.6 		Subdivision 1.Salary limits. As used in subdivisions 1 to 9, "salary" means hourly, 
77.7 	monthly, or annual rate of pay including any lump-sum payments and cost-of-living 
77.8 	adjustment increases but excluding payments due to overtime worked, shift or equipment 
77.9 	differentials, work out of class as required by collective bargaining agreements or plans 
77.10 	established under section 43A.18, and back pay on reallocation or other payments related 
77.11 	to the hours or conditions under which work is performed rather than to the salary range 
77.12 	or rate to which a class is assigned. For presidents of state universities, "salary" does 
77.13 	not include a housing allowance provided through a compensation plan approved under 
77.14 	section 43A.18, subdivision 3a.
77.15 	The salary, as established in section 15A.0815, of the head of a state agency in the 
77.16 	executive branch is the upper limit on the salaries of individual employees in the agency. 
77.17 	However, if an agency head is assigned a salary that is lower than the current salary of 
77.18 	another agency employee, the employee retains the salary, but may not receive an increase 
77.19 	in salary as long as the salary is above that of the agency head. The commissioner may 
77.20 	grant exemptions from these upper limits as provided in subdivisions 3 and 4.

77.21 	Sec. 10. Minnesota Statutes 2012, section 43A.17, subdivision 3, is amended to read:
77.22 		Subd. 3.Unusual employment situations. (a) Upon the request of the appointing 
77.23 	authority, and when the commissioner determines that changes in employment situations 
77.24 	create difficulties in attracting or retaining employees, the commissioner may approve an 
77.25 	unusual employment situation increase to advance an employee within the compensation 
77.26 	plan salary range.
77.27 	(b) If the commissioner determines that a position requires special expertise 
77.28 	necessitating a higher salary to attract or retain qualified persons, the commissioner may 
77.29 	grant an exemption not to exceed 120 percent of the salary of the head of the agency or the 
77.30 	maximum rate established for the position, whichever is less.
77.31 	(c) The following conditions apply to a request under paragraph (a) to advance an 
77.32 	employee within a compensation plan or under paragraph (b) to exceed the salary of the 
77.33 	agency head salary range:
78.1 	(1) the appointing authority making the request must submit a detailed written 
78.2 	statement for each position contained in the request, specifying the changes in employment 
78.3 	situations that create difficulties in attracting or retaining an employee for the position;
78.4 	(2) the commissioner shall review each proposal giving due consideration to salary 
78.5 	rates paid to other employees in the same class and agency and, if other conditions in 
78.6 	this paragraph are met, may approve any request that in the commissioner's judgment is 
78.7 	in the best interest of the state;
78.8 	(3) the action must be consistent with applicable provisions of collective bargaining 
78.9 	agreements or plans adopted under section 43A.18;
78.10 	(4) each increase or exemption must be separately documented for each employee or 
78.11 	position and may not be applied to groups of employees; and
78.12 	(5) the commissioner shall report the granting of a request to the chair of the 
78.13 	Legislative Coordinating Commission within three working days.

78.14 	Sec. 11. COMPENSATION STUDY.
 78.15 	The commissioner of management and budget must contract with an independent 
78.16 	consultant to conduct a comprehensive market analysis of compensation for managerial 
78.17 	positions in the executive branch in order to better align compensation for these positions 
78.18 	with comparable positions in the private sector and with other relevant public sector 
78.19 	employers. The analysis should evaluate total compensation, including insurance, 
78.20 	retirement, and performance pay.

78.21 	Sec. 12. CONSTITUTIONAL OFFICERS SALARIES.
 78.22 	The salary of the governor is increased by three percent effective January 1, 2015, 
78.23 	and by three percent on January 1, 2016. The salaries of the other constitutional officers 
78.24 	shall be adjusted to retain their proportional relationship as of January 1, 2013, to the 
78.25 	salary of the governor.

78.26 	Sec. 13. REPEALER.
 78.27 	Minnesota Statutes 2012, section 43A.17, subdivision 4, is repealed.

78.28 	Sec. 14. EFFECTIVE DATE.
 78.29 	Sections 2, 4, and 7 to 12 are effective the day following final enactment. Sections 
78.30 	5 and 6 are effective retroactively from January 1, 2013. Section 3 is effective January 
78.31 	1, 2017.