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SF 1589

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 05/21/2013 01:43pm

KEY: stricken = removed, old language. underscored = added, new language.

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1.1A bill for an act
1.2relating to the operation of state government finance; allowing the secretary of
1.3state authority to accept funds from local government units for election systems
1.4enhancements and to receive certain funds for the address confidentiality program;
1.5allowing the state auditor to charge a onetime user fee for a small city and
1.6town accounting system software; changing provisions for bid solicitations and
1.7proposals; changing certain provisions for service contracts and the solicitation
1.8process; requiring a determination of the IT cost for agency technology
1.9projects; expanding E-Government initiative and establishing the E-Government
1.10Advisory Council; changing certain audit provisions from the state auditor to
1.11the legislative auditor; repealing the Minnesota Sunset Act; changing provisions
1.12for barbering and cosmetology; changing licensing provisions for accountants;
1.13changing a paid military leave provision; modifying provisions in the Veterans
1.14Service Office grant program; changing provision in the Minnesota GI Bill
1.15program; establishing a veterans home in Beltrami County; making Department
1.16of Revenue changes; making compensation council changes and requiring a
1.17compensation study; adjusting certain salary groups; establishing administrative
1.18penalties; establishing fees; appropriating money;amending Minnesota Statutes
1.192012, sections 3.099, subdivision 1; 3.855, subdivision 3; 13.591, subdivision
1.203; 15A.0815, subdivisions 1, 2, 3, 5; 15A.082, subdivision 2; 16A.82; 16C.02,
1.21subdivision 13; 16C.06, subdivision 2; 16C.09; 16C.10, subdivision 6; 16C.145;
1.2216C.33, subdivision 3; 16C.34, subdivision 1; 16E.07, by adding a subdivision;
1.2332C.04; 43A.17, subdivisions 1, 3; 65B.84, subdivision 1; 154.001, by adding a
1.24subdivision; 154.003; 154.02; 154.05; 154.06; 154.065, subdivision 2; 154.07,
1.25subdivision 1; 154.08; 154.09; 154.10, subdivision 1; 154.11, subdivision 1;
1.26154.12; 154.14; 154.15, subdivision 2; 154.26; 155A.23, subdivision 3; 155A.25,
1.27subdivisions 1a, 4; 155A.27, subdivisions 4, 7, 10; 155A.29, subdivision 2;
1.28155A.30, subdivision 1, by adding subdivisions; 192.26; 197.608, subdivisions
1.291, 3, 4, 5, 6; 197.791, subdivisions 4, 5; 254A.035, subdivision 2; 254A.04;
1.30256B.093, subdivision 1; 260.835, subdivision 2; 270C.69, subdivision 1;
1.31289A.20, subdivisions 2, 4; 289A.26, subdivision 2a; 295.55, subdivision
1.324; 297F.09, subdivision 7; 297G.09, subdivision 6; 297I.30, by adding a
1.33subdivision; 297I.35, subdivision 2; 326A.04, subdivisions 2, 3, 5, 7; 326A.10;
1.34469.3201; 473.843, subdivision 3; Laws 2012, chapter 278, article 1, section 5;
1.35article 2, sections 27; 34; proposing coding for new law in Minnesota Statutes,
1.36chapters 4; 5; 5B; 6; 16E; 154; 155A; 198; 297I; repealing Minnesota Statutes
1.372012, sections 3D.01; 3D.02; 3D.03; 3D.04; 3D.045; 3D.05; 3D.06; 3D.065;
1.383D.07; 3D.08; 3D.09; 3D.10; 3D.11; 3D.12; 3D.13; 3D.14; 3D.15; 3D.16; 3D.17;
1.393D.18; 3D.19; 3D.20; 3D.21, subdivisions 2, 3, 4, 5, 6, 7, 8; 43A.17, subdivision
2.14; 155A.25, subdivision 1; 168A.40, subdivisions 3, 4; 197.608, subdivision 2a;
2.2270C.145; 326A.03, subdivisions 2, 5, 8; Laws 2012, chapter 278, article 1,
2.3section 6; Minnesota Rules, parts 1105.0600; 1105.2550; 1105.2700.
2.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.5ARTICLE 1
2.6STATE GOVERNMENT APPROPRIATIONS

2.7
Section 1. STATE GOVERNMENT APPROPRIATIONS.
2.8    The sums shown in the columns marked "Appropriations" are appropriated to the
2.9agencies and for the purposes specified in this article. The appropriations are from the
2.10general fund, or another named fund, and are available for the fiscal years indicated
2.11for each purpose. The figures "2014" and "2015" used in this article mean that the
2.12appropriations listed under them are available for the fiscal year ending June 30, 2014, or
2.13June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
2.14year 2015. "The biennium" is fiscal years 2014 and 2015.
2.15
APPROPRIATIONS
2.16
Available for the Year
2.17
Ending June 30
2.18
2014
2015

2.19
Sec. 2. LEGISLATURE
2.20
Subdivision 1.Total Appropriation
$
69,220,000
$
69,220,000
2.21
Appropriations by Fund
2.22
2014
2015
2.23
General
69,092,000
69,092,000
2.24
Health Care Access
128,000
128,000
2.25The amounts that may be spent for each
2.26purpose are specified in the following
2.27subdivisions.
2.28
Subd. 2.Senate
22,633,000
22,633,000
2.29
Subd. 3.House of Representatives
30,524,000
30,524,000
2.30During the biennium ending June 30, 2015,
2.31any revenues received by the house of
2.32representatives from voluntary donations
2.33to support broadcast or print media are
2.34appropriated to the house of representatives.
3.1
Subd. 4.Legislative Coordinating Commission
16,063,000
16,063,000
3.2
Appropriations by Fund
3.3
General
15,935,000
15,935,000
3.4
Health Care Access
128,000
128,000
3.5$6,185,000 each year from the general fund
3.6is for the Office of the Legislative Auditor.
3.7From its funds, $10,000 each year is for
3.8purposes of the legislators' forum, through
3.9which Minnesota legislators meet with
3.10counterparts from South Dakota, North
3.11Dakota, and Manitoba to discuss issues of
3.12mutual concern.
3.13The Legislative Coordinating Commission
3.14is authorized to enter into an agreement
3.15with the National Conference of State
3.16Legislatures to provide the organization up to
3.17$100,000 of its funds to support activities in
3.18preparation for the annual conference to be
3.19held in Minnesota in 2014. It is anticipated
3.20that these funds will be returned to the
3.21Legislative Coordinating Commission, and
3.22are reappropriated to the commission.

3.23
3.24
Sec. 3. GOVERNOR AND LIEUTENANT
GOVERNOR
$
3,193,000
$
3,193,000
3.25(a) This appropriation is to fund the Office of
3.26the Governor and Lieutenant Governor.
3.27(b) $19,000 the first year and $19,000 the
3.28second year are for necessary expenses in the
3.29normal performance of the Governor's and
3.30Lieutenant Governor's duties for which no
3.31other reimbursement is provided.
3.32(c) By September 1 of each year, the
3.33commissioner of management and budget
3.34shall report to the chairs and ranking minority
4.1members of the senate State Departments
4.2and Veterans Affairs Budget Division and the
4.3house of representatives State Government
4.4Finance Committee any personnel costs
4.5incurred by the Offices of the Governor and
4.6Lieutenant Governor that were supported
4.7by appropriations to other agencies during
4.8the previous fiscal year. The Office of the
4.9Governor shall inform the chairs and ranking
4.10minority members of the committees before
4.11initiating any interagency agreements.
4.12(d) During the biennium ending June 30,
4.132015, the Office of the Governor may not
4.14receive payments of more than $750,000
4.15each fiscal year from other executive
4.16agencies under Minnesota Statutes, section
4.1715.53, to support office costs, not including
4.18the residence groundskeeper, incurred by
4.19the office. Payments received under this
4.20paragraph must be deposited in a special
4.21revenue account. Money in the account is
4.22appropriated to the Office of the Governor.
4.23The authority in this paragraph supersedes
4.24other law enacted in 2013 that limits the
4.25ability of the office to enter into agreements
4.26relating to office costs with other executive
4.27branch agencies or prevents the use of
4.28appropriations made to other agencies for
4.29agreements with the office under Minnesota
4.30Statutes, section 15.53.

4.31
Sec. 4. STATE AUDITOR
$
8,559,000
$
8,559,000

4.32
Sec. 5. ATTORNEY GENERAL
$
23,288,000
$
23,288,000
4.33
Appropriations by Fund
4.34
2014
2015
5.1
General
21,071,000
21,071,000
5.2
5.3
State Government
Special Revenue
1,822,000
1,822,000
5.4
Environmental
145,000
145,000
5.5
Remediation
250,000
250,000
5.6Of this appropriation, $65,000 in the first
5.7year and $65,000 in the second year are
5.8from the general fund for transfer to the
5.9commissioner of public safety for a grant to
5.10the Minnesota County Attorneys Association
5.11for prosecutor and law enforcement training.

5.12
Sec. 6. SECRETARY OF STATE
$
5,665,000
$
5,810,000
5.13Any funds available in the account
5.14established in Minnesota Statutes, section
5.155.30, pursuant to the Help America Vote Act,
5.16is appropriated for the purposes and uses
5.17authorized by federal law.
5.18Redistricting Case. $355,000 the first year
5.19is appropriated to the secretary of state to
5.20be used to pay attorney fees as ordered by
5.21the court in the legislative and congressional
5.22redistricting case Hippert et al. v. Ritchie
5.23et al., A11-152, and interest thereon. This
5.24appropriation is available for expenditure the
5.25day following final enactment.

5.26
5.27
Sec. 7. CAMPAIGN FINANCE AND PUBLIC
DISCLOSURE BOARD
$
1,000,000
$
1,000,000

5.28
Sec. 8. INVESTMENT BOARD
$
139,000
$
139,000

5.29
Sec. 9. ADMINISTRATIVE HEARINGS
$
7,730,000
$
7,504,000
5.30
Appropriations by Fund
5.31
2014
2015
5.32
General
480,000
254,000
5.33
5.34
Workers'
Compensation
7,250,000
7,250,000
6.1Campaign Violations Hearings. (a)
6.2$130,000 the first year is appropriated from
6.3the general fund for the cost of considering
6.4complaints filed under Minnesota Statutes,
6.5section 211B.32. Any amount of this
6.6appropriation that remains unspent at the
6.7end of the biennium must be canceled to
6.8the general account of the state elections
6.9campaign fund. The base for fiscal year 2016
6.10is $130,000, to be available for the biennium,
6.11under the same terms.
6.12(b) $60,000 the first year is appropriated
6.13from the general fund to cover the fiscal year
6.142013 costs of campaign violations hearings.
6.15This is a onetime appropriation.
6.16Data Practices Hearings. $36,000 the first
6.17year is appropriated from the general fund
6.18to cover the fiscal year 2013 costs for data
6.19practices hearings.

6.20
6.21
Sec. 10. OFFICE OF ENTERPRISE
TECHNOLOGY
$
2,431,000
$
2,431,000
6.22During the biennium ending June 30, 2015,
6.23the Office of Enterprise Technology must
6.24not charge fees to a public noncommercial
6.25educational television broadcast station
6.26eligible for funding under Minnesota
6.27Statutes, chapter 129D, for access to the
6.28state broadcast infrastructure. If the access
6.29fees not charged to public noncommercial
6.30educational television broadcast stations total
6.31more than $400,000 for the biennium, the
6.32office may charge for access fees in excess
6.33of these amounts.
6.34The commissioner of Minnesota management
6.35and budget is authorized to provide cash
7.1flow assistance of up to $110,000,000 from
7.2the special revenue fund or other statutory
7.3general funds as defined in Minnesota
7.4Statutes, section 16A.671, subdivision 3,
7.5paragraph (a), to the Office of Enterprise
7.6Technology for the purpose of managing
7.7revenue and expenditure differences during
7.8the initial phases of IT consolidation. These
7.9funds shall be repaid with interest by June
7.1030, 2015.

7.11
Sec. 11. ADMINISTRATION
7.12
Subdivision 1.Total Appropriation
$
21,276,000
$
20,246,000
7.13The amounts that may be spent for each
7.14purpose are specified in the following
7.15subdivisions.
7.16
Subd. 2.Government and Citizen Services
7,698,000
7,668,000
7.17$74,000 the first year and $74,000 the second
7.18year are for the Council on Developmental
7.19Disabilities.
7.20$30,000 the first year is for a bust of Nellie
7.21Stone Johnson. Notwithstanding Minnesota
7.22Statutes, section 138.68, the commissioner
7.23of administration shall place a bust of Nellie
7.24Stone Johnson in the State Capitol Building.
7.25The Department of Administration, in
7.26consultation with the Minnesota Historical
7.27Society and the Capitol Area Architectural
7.28and Planning Board, shall apply existing
7.29guidelines for design and placement of works
7.30of art in the State Capitol Building. This
7.31appropriation is available until expended.
7.32
Subd. 3.Strategic Management Services
1,757,000
1,757,000
7.33
Subd. 4.Fiscal Agent
11,821,000
10,821,000
8.1The appropriations under this section are to
8.2the commissioner of administration for the
8.3purposes specified.
8.4In-Lieu of Rent. $8,158,000 the first year
8.5and $8,158,000 the second year are for
8.6office space costs of the legislature and
8.7veterans organizations, ceremonial space,
8.8and statutorily free space.
8.9Public Broadcasting. (a) $1,695,000 the
8.10first year and $1,695,000 the second year are
8.11for matching grants for public television.
8.12The base is $1,057,000 for fiscal year 2016
8.13and $1,057,000 for fiscal year 2017.
8.14(b) $302,000 the first year and $302,000
8.15the second year are for public television
8.16equipment grants. The base is $190,000 for
8.17fiscal year 2016 and $190,000 for fiscal year
8.182017.
8.19(c) The equipment or matching grants in
8.20paragraphs (a) and (b) must be allocated
8.21after considering the recommendations of the
8.22Minnesota Public Television Association.
8.23(d) $634,000 the first year and $264,000 the
8.24second year are for community service grants
8.25to public educational radio stations, for the
8.26repair, rental, and purchase of equipment,
8.27including equipment under $500.
8.28(e) $222,000 the first year and $92,000 the
8.29second year are for equipment grants to
8.30public educational radio stations.
8.31(f) Notwithstanding eligibility requirements
8.32in Minnesota Statutes, section 129D.14,
8.33station KOJB in Cass Lake on the Leech
8.34Lake Reservation; station KBFT in Nett Lake
9.1on the Bois Forte Reservation; and station
9.2KKWE in Callaway on the White Earth
9.3Reservation are eligible to receive matching
9.4grants and equipment grants in paragraphs
9.5(d) and (e).
9.6(g) The grants in paragraphs (d) and (e)
9.7must be allocated after considering the
9.8recommendations of the Association of
9.9Minnesota Public Educational Radio Stations
9.10under Minnesota Statutes, section 129D.14.
9.11(h) $810,000 the first year and $310,000
9.12the second year are for equipment grants
9.13to Minnesota Public Radio, Inc., including
9.14upgrades to Minnesota's Emergency Alert
9.15and AMBER Alert Systems.
9.16(i) Any unencumbered balance remaining the
9.17first year for grants to public television or
9.18radio stations does not cancel and is available
9.19for the second year.

9.20
9.21
9.22
Sec. 12. CAPITOL AREA
ARCHITECTURAL AND PLANNING
BOARD
$
325,000
$
325,000

9.23
9.24
Sec. 13. MINNESOTA MANAGEMENT AND
BUDGET
$
26,644,000
$
20,369,000
9.25Statewide Budget System. $4,500,000 the
9.26first year and $725,000 the second year are
9.27for the statewide budget system. $3,120,000
9.28in fiscal year 2014 is for transfer to the
9.29Office of Enterprise Technology to continue
9.30development of the new statewide budget
9.31system and to develop new capabilities
9.32including, but not limited to, capital budget
9.33and fiscal notes. The transfer is onetime and
9.34is available until spent.
10.1Enterprise-Wide Results Management.
10.2 $500,000 the first year and $500,000 the
10.3second year are for building capacity to
10.4provide enterprise-wide results management
10.5facilitation and coordination.
10.6Enterprise Human Resources Capacity.
10.7 $900,000 the first year and $900,000 the
10.8second year are for rebuilding the state's
10.9human resources infrastructure.
10.10Compensation Council Increases.
10.11 $2,500,000 from the general fund is
10.12appropriated to the commissioner for
10.13implementation of the compensation
10.14increases in article 7 for executive branch
10.15agencies and constitutional offices. The
10.16commissioner shall determine the amount
10.17of general fund increases for the biennium
10.18to each agency and office, and within the
10.19available appropriation, make a transfer that
10.20is added to the base of each agency or office.
10.21Of this amount, up to $200,000 is to conduct
10.22the compensation study in article 7, section
10.2311. The total amount added to the base is not
10.24to exceed $2,500,000 in fiscal years 2016
10.25and 2017.
10.26Any funds remaining nontransferred after
10.27implementation of the compensation
10.28increases and the compensation study
10.29in article 7 may be transferred by the
10.30commissioner and added to the base of each
10.31agency or office to cover increased general
10.32fund compensation costs due to the most
10.33recent collective bargaining agreements.

10.34
Sec. 14. REVENUE
10.35
Subdivision 1.Total Appropriation
$
140,673,000
$
140,137,000
11.1
Appropriations by Fund
11.2
2014
2015
11.3
General
136,438,000
135,902,000
11.4
Health Care Access
1,749,000
1,749,000
11.5
11.6
Highway User Tax
Distribution
2,183,000
2,183,000
11.7
Environmental
303,000
303,000
11.8
Subd. 2.Tax System Management
112,057,000
111,521,000
11.9
Appropriations by Fund
11.10
General
107,822,000
107,286,000
11.11
Health Care Access
1,749,000
1,749,000
11.12
11.13
Highway User Tax
Distribution
2,183,000
2,183,000
11.14
Environmental
303,000
303,000
11.15County Technical Assistance Grants. (a)
11.16The commissioner of revenue may make
11.17technical assistance grants to counties to
11.18fund development, implementation, or
11.19maintenance of data collection and data
11.20processing systems that will facilitate
11.21improved reporting of property tax data
11.22on parcels and portions of parcels to
11.23the commissioner for analytical and
11.24administrative use. The grants may be made
11.25in the order they are requested, or on some
11.26other basis determined by the commissioner.
11.27The commissioner shall determine whether to
11.28require an application or recipient agreement
11.29and shall determine the form and content of
11.30the application or agreement.
11.31(b) $300,000 is appropriated to the
11.32commissioner from the general fund in fiscal
11.33year 2014 to make grants to counties as
11.34provided in this section. This appropriation
11.35is available for fiscal years 2014 and 2015
11.36only, and does not become part of the base.
12.1Appropriation; Taxpayer Assistance. (a)
12.2$200,000 in fiscal year 2014, and $200,000
12.3in fiscal year 2015, are added to the base
12.4appropriation of $200,000 each year. These
12.5amounts are appropriated from the general
12.6fund to the commissioner of revenue to
12.7make grants to one or more nonprofit
12.8organizations, qualifying under section
12.9501(c)(3) of the Internal Revenue Code of
12.101986, to coordinate, facilitate, encourage, and
12.11aid in the provision of taxpayer assistance
12.12services. The unencumbered balance in the
12.13first year does not cancel but is available for
12.14the second year.
12.15(b) For purposes of this section, "taxpayer
12.16assistance services" means accounting
12.17and tax preparation services provided by
12.18volunteers to low-income, elderly, and
12.19disadvantaged Minnesota residents to help
12.20them file federal and state income tax returns
12.21and Minnesota property tax refund claims
12.22and to provide personal representation before
12.23the Department of Revenue and Internal
12.24Revenue Service.
12.25
Subd. 3.Debt Collection Management
28,616,000
28,616,000

12.26
Sec. 15. GAMBLING CONTROL
$
3,959,000
$
3,959,000
12.27These appropriations are from the lawful
12.28gambling regulation account in the special
12.29revenue fund.

12.30
Sec. 16. RACING COMMISSION
$
899,000
$
899,000
12.31These appropriations are from the racing
12.32and card playing regulation accounts in the
12.33special revenue fund.

13.1
Sec. 17. STATE LOTTERY
13.2Notwithstanding Minnesota Statutes, section
13.3349A.10, subdivision 3, the operating budget
13.4must not exceed $30,500,000 in fiscal year
13.52014 and $30,500,000 in fiscal year 2015.

13.6
Sec. 18. AMATEUR SPORTS COMMISSION
$
278,000
$
278,000

13.7
13.8
Sec. 19. COUNCIL ON BLACK
MINNESOTANS
$
417,000
$
417,000

13.9
13.10
Sec. 20. COUNCIL ON ASIAN-PACIFIC
MINNESOTANS
$
379,000
$
379,000

13.11
13.12
Sec. 21. COUNCIL ON AFFAIRS OF
CHICANO/LATINO PEOPLE
$
400,000
$
400,000

13.13
Sec. 22. INDIAN AFFAIRS COUNCIL
$
587,000
$
587,000
13.14Of this appropriation, $167,000 each year is
13.15for a cultural resources specialist to assist the
13.16council with the duties assigned to it relating
13.17to Indian burial grounds under Minnesota
13.18Statutes, section 307.08.

13.19
13.20
Sec. 23. MINNESOTA HISTORICAL
SOCIETY
13.21
Subdivision 1.Total Appropriation
$
21,059,000
$
20,925,000
13.22The amounts that may be spent for each
13.23purpose are specified in the following
13.24subdivisions.
13.25
Subd. 2.Operations and Programs
20,611,000
20,611,000
13.26Notwithstanding Minnesota Statutes, section
13.27138.668, the Minnesota Historical Society
13.28may not charge a fee for its general tours at
13.29the Capitol, but may charge fees for special
13.30programs other than general tours. $150,000
13.31the first year and $150,000 the second year are
14.1for expanding education outreach, including
14.2curriculum workshops, curriculum materials,
14.3and summer internships for at-risk youth.
14.4$50,000 the first year and $50,000 the second
14.5year are for the Minnesota Forest History
14.6Center.
14.7
Subd. 3.Fiscal Agent
14.8
(a) Minnesota International Center
39,000
39,000
14.9
(b) Minnesota Air National Guard Museum
34,000
-0-
14.10
(c) Minnesota Military Museum
160,000
60,000
14.11Of this amount, $60,000 each year is for an
14.12archivist staff position. The base for fiscal
14.13year 2016 is $100,000.
14.14
(d) Farmamerica
115,000
115,000
14.15
(e) Hockey Hall of Fame
100,000
100,000
14.16Balances Forward. Any unencumbered
14.17balance remaining in this subdivision the first
14.18year does not cancel but is available for the
14.19second year of the biennium.

14.20
Sec. 24. BOARD OF THE ARTS
14.21
Subdivision 1.Total Appropriation
$
7,567,000
$
7,567,000
14.22The amounts that may be spent for each
14.23purpose are specified in the following
14.24subdivisions.
14.25
Subd. 2.Operations and Services
567,000
567,000
14.26
Subd. 3.Grants Program
4,800,000
4,800,000
14.27
Subd. 4.Regional Arts Councils
2,200,000
2,200,000
14.28Unencumbered Balance Available. Any
14.29unencumbered balance remaining in this
14.30section the first year does not cancel, but is
14.31available for the second year of the biennium.

15.1
15.2
Sec. 25. MINNESOTA HUMANITIES
CENTER
$
301,000
$
251,000
15.3$50,000 the first year is for a grant to
15.4Everybody Wins!-Minnesota, a Minnesota
15.5501(c)(3) corporation, to operate a reading
15.6program for Minnesota children.

15.7
Sec. 26. BOARD OF ACCOUNTANCY
$
480,000
$
736,000
15.8The base is $652,000 for fiscal year 2016 and
15.9$652,000 for fiscal year 2017.

15.10
15.11
15.12
15.13
Sec. 27. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
774,000
$
774,000

15.14
15.15
Sec. 28. BOARD OF COSMETOLOGIST
EXAMINERS
$
1,353,000
$
1,347,000

15.16
Sec. 29. BOARD OF BARBER EXAMINERS
$
317,000
$
317,000

15.17
15.18
Sec. 30. GENERAL CONTINGENT
ACCOUNTS
$
1,000,000
$
500,000
15.19
Appropriations by Fund
15.20
2014
2015
15.21
General
500,000
-0-
15.22
15.23
State Government
Special Revenue
400,000
400,000
15.24
15.25
Workers'
Compensation
100,000
100,000
15.26(a) The appropriations in this section
15.27may only be spent with the approval of
15.28the governor after consultation with the
15.29Legislative Advisory Commission pursuant
15.30to Minnesota Statutes, section 3.30.
15.31(b) If an appropriation in this section for
15.32either year is insufficient, the appropriation
15.33for the other year is available for it.
16.1(c) If a contingent account appropriation
16.2is made in one fiscal year, it should be
16.3considered a biennial appropriation.

16.4
Sec. 31. TORT CLAIMS
$
161,000
$
161,000
16.5These appropriations are to be spent by the
16.6commissioner of management and budget
16.7according to Minnesota Statutes, section
16.83.736, subdivision 7. If the appropriation for
16.9either year is insufficient, the appropriation
16.10for the other year is available for it.

16.11
16.12
Sec. 32. MINNESOTA STATE RETIREMENT
SYSTEM
16.13
Subdivision 1.Total Appropriation
$
3,891,000
$
3,964,000
16.14The amounts that may be spent for each
16.15purpose are specified in the following
16.16subdivisions.
16.17
Subd. 2.Legislators
3,406,000
3,475,000
16.18Under Minnesota Statutes, sections 3A.03,
16.19subdivision 2; 3A.04, subdivisions 3 and 4;
16.20and 3A.115.
16.21
Subd. 3. Constitutional Officers
485,000
489,000
16.22Under Minnesota Statutes, section 352C.001,
16.23if an appropriation in this section for either
16.24year is insufficient, the appropriation for the
16.25other year is available for it.

16.26
16.27
Sec. 33. MINNEAPOLIS EMPLOYEES
RETIREMENT FUND DIVISION ACCOUNT
$
24,000,000
$
24,000,000
16.28These amounts are estimated to be needed
16.29under Minnesota Statutes, section 353.505.

16.30
16.31
Sec. 34. TEACHERS RETIREMENT
ASSOCIATION
$
15,454,000
$
15,454,000
17.1The amounts estimated to be needed are as
17.2follows:
17.3Special Direct State Aid. $12,954,000 the
17.4first year and $12,954,000 the second year
17.5are for special direct state aid authorized
17.6under Minnesota Statutes, section 354A.12,
17.7subdivisions 3a and 3c.
17.8Special Direct State Matching Aid.
17.9 $2,500,000 the first year and $2,500,000
17.10the second year are for special direct state
17.11matching aid authorized under Minnesota
17.12Statutes, section 354.435.

17.13
17.14
Sec. 35. ST. PAUL TEACHERS
RETIREMENT FUND
$
2,827,000
$
2,827,000
17.15The amounts estimated to be needed for
17.16special direct state aid to first class city
17.17teachers retirement funds authorized under
17.18Minnesota Statutes, section 354A.12,
17.19subdivisions 3a and 3c.

17.20
17.21
Sec. 36. DULUTH TEACHERS
RETIREMENT FUND
$
346,000
$
346,000
17.22The amounts estimated to be needed for
17.23special direct state aid to first class city
17.24teachers retirement funds authorized under
17.25Minnesota Statutes, section 354A.12,
17.26subdivisions 3a and 3c.

17.27
Sec. 37. MILITARY AFFAIRS
17.28
Subdivision 1.Total Appropriation
$
19,568,000
$
19,368,000
17.29The amounts that may be spent for each
17.30purpose are specified in the following
17.31subdivisions.
17.32
Subd. 2.Maintenance of Training Facilities
6,661,000
6,661,000
17.33
Subd. 3.General Support
2,559,000
2,359,000
18.1$200,000 in fiscal year 2014 is for a grant
18.2to the USS Minnesota Commissioning
18.3Committee to support activities related to
18.4the commissioning of the USS Minnesota.
18.5The grant shall be provided upon the
18.6condition that each state-appropriated dollar
18.7be matched with a private sector dollar. The
18.8USS Minnesota Commissioning Committee
18.9shall certify to the adjutant general by July
18.1015, 2013, the amount of private sector funds
18.11raised to support the commissioning of the
18.12USS Minnesota. Acceptable matching funds
18.13are private sector contributions that the USS
18.14Minnesota Commissioning Committee has
18.15received and that have not been used to
18.16match any other state grant.
18.17
Subd. 4.Enlistment Incentives
10,348,000
10,348,000
18.18If appropriations for either year of the
18.19biennium are insufficient, the appropriation
18.20from the other year is available. The
18.21appropriations for enlistment incentives are
18.22available until expended.

18.23
Sec. 38. VETERANS AFFAIRS
18.24
Subdivision 1.Total Appropriation
$
63,843,000
$
62,248,000
18.25The amounts that may be spent for each
18.26purpose are specified in the following
18.27subdivisions.
18.28
Subd. 2.Veterans Services
16,386,000
15,735,000
18.29Veterans Service Organizations. $353,000
18.30each year is for grants to the following
18.31congressionally chartered veterans service
18.32organizations, as designated by the
18.33commissioner: Disabled American Veterans,
18.34Military Order of the Purple Heart, the
19.1American Legion, Veterans of Foreign Wars,
19.2Vietnam Veterans of America, AMVETS,
19.3and Paralyzed Veterans of America. This
19.4funding must be allocated in direct proportion
19.5to the funding currently being provided by
19.6the commissioner to these organizations.
19.7Minnesota Assistance Council for
19.8Veterans. $750,000 each year is for a grant
19.9to the Minnesota Assistance Council for
19.10Veterans to provide assistance throughout
19.11Minnesota to veterans and their families who
19.12are homeless or in danger of homelessness,
19.13including assistance with the following:
19.14(1) utilities;
19.15(2) employment; and
19.16(3) legal issues.
19.17The assistance authorized under this
19.18paragraph must be made only to veterans who
19.19have resided in Minnesota for 30 days prior
19.20to application for assistance and according
19.21to other guidelines established by the
19.22commissioner. In order to avoid duplication
19.23of services, the commissioner must ensure
19.24that this assistance is coordinated with all
19.25other available programs for veterans. The
19.26base is $500,000 for fiscal year 2016 and
19.27$500,000 for fiscal year 2017.
19.28IT Upgrades. $618,000 in fiscal year 2014
19.29and $382,000 in fiscal year 2015 are to
19.30improve and modernize the department's
19.31information technology systems. These
19.32funds shall be transferred to the Office of
19.33Enterprise Technology. This is a onetime
19.34transfer and is available until spent.
20.1Veterans Cemetery in Fillmore County.
20.2 $425,000 in fiscal year 2015 is for operation
20.3of the new veterans cemetery in Fillmore
20.4County. This amount is added to the
20.5program's base funding.
20.6Honor Guards. $200,000 each year is
20.7for compensation for honor guards at
20.8the funerals of veterans under Minnesota
20.9Statutes, section 197.231. This amount is
20.10added to the program's base funding.
20.11Minnesota GI Bill. $200,000 each year is
20.12for the costs of administering the Minnesota
20.13GI Bill postsecondary educational benefits,
20.14on-the-job training, and apprenticeship
20.15program under Minnesota Statutes, section
20.16197.791. Of this amount, $100,000 is for
20.17transfer to the Office of Higher Education.
20.18Gold Star Program. $100,000 each year
20.19is for administering the Gold Star Program
20.20for surviving family members of deceased
20.21veterans. This amount is added to the
20.22program's base funding.
20.23County Veterans Service Office. $595,000
20.24each year is for funding the County
20.25Veterans Service Office grant program under
20.26Minnesota Statutes, section 197.608.
20.27Support Our Troops. $840,000 in the
20.28first year is for transfer to the Minnesota
20.29"Support Our Troops" account established
20.30in Minnesota Statutes, section 190.19,
20.31subdivision 1, for the uses provided
20.32in Minnesota Statutes, section 190.19,
20.33subdivision 2a. Notwithstanding the
20.34provisions of Minnesota Statutes, section
20.35190.19, subdivision 1, that appropriate
21.1money in the account in equal shares to
21.2two departments, the transferred amount is
21.3appropriated entirely to the commissioner of
21.4veterans affairs.
21.5Veterans Paramedic Apprenticeship
21.6Program. All unspent funds, estimated to
21.7be $110,000, from the Veterans Paramedic
21.8Apprenticeship Program, from the onetime
21.9appropriation under Laws 2009, chapter 79,
21.10article 13, section 7, are canceled to the
21.11general fund on July 1, 2013.
21.12
Subd. 3.Veterans Homes
47,457,000
46,513,000
21.13Veterans Homes Special Revenue Account.
21.14 The general fund appropriations made to the
21.15department may be transferred to a veterans
21.16homes special revenue account in the special
21.17revenue fund in the same manner as other
21.18receipts are deposited according to Minnesota
21.19Statutes, section 198.34, and are appropriated
21.20to the department for the operation of
21.21veterans homes facilities and programs.
21.22IT Upgrades. $2,472,000 in fiscal year 2014
21.23and $1,528,000 in fiscal year 2015 are to
21.24improve and modernize the department's
21.25information technology systems. These
21.26funds shall be transferred to the Office of
21.27Enterprise Technology. This is a onetime
21.28transfer and is available until spent.
21.29Maximize Federal Reimbursements.
21.30 The department will seek opportunities
21.31to maximize federal reimbursements of
21.32Medicare-eligible expenses and will provide
21.33annual reports to the commissioner of
21.34management and budget on the federal
21.35Medicare reimbursements received.
22.1Contingent upon future federal Medicare
22.2receipts, reductions to the homes' general
22.3fund appropriation may be made.

22.4ARTICLE 2
22.5MINNESOTA SUNSET ACT

22.6    Section 1. Minnesota Statutes 2012, section 254A.035, subdivision 2, is amended to
22.7read:
22.8    Subd. 2. Membership terms, compensation, removal and expiration. The
22.9membership of this council shall be composed of 17 persons who are American Indians
22.10and who are appointed by the commissioner. The commissioner shall appoint one
22.11representative from each of the following groups: Red Lake Band of Chippewa Indians;
22.12Fond du Lac Band, Minnesota Chippewa Tribe; Grand Portage Band, Minnesota
22.13Chippewa Tribe; Leech Lake Band, Minnesota Chippewa Tribe; Mille Lacs Band,
22.14Minnesota Chippewa Tribe; Bois Forte Band, Minnesota Chippewa Tribe; White Earth
22.15Band, Minnesota Chippewa Tribe; Lower Sioux Indian Reservation; Prairie Island Sioux
22.16Indian Reservation; Shakopee Mdewakanton Sioux Indian Reservation; Upper Sioux
22.17Indian Reservation; International Falls Northern Range; Duluth Urban Indian Community;
22.18and two representatives from the Minneapolis Urban Indian Community and two from the
22.19St. Paul Urban Indian Community. The terms, compensation, and removal of American
22.20Indian Advisory Council members shall be as provided in section 15.059. The council
22.21expires June 30, 2014, or in accordance with section 3D.21, whichever is later.

22.22    Sec. 2. Minnesota Statutes 2012, section 254A.04, is amended to read:
22.23254A.04 CITIZENS ADVISORY COUNCIL.
22.24There is hereby created an Alcohol and Other Drug Abuse Advisory Council to
22.25advise the Department of Human Services concerning the problems of alcohol and
22.26other drug dependency and abuse, composed of ten members. Five members shall be
22.27individuals whose interests or training are in the field of alcohol dependency and abuse;
22.28and five members whose interests or training are in the field of dependency and abuse of
22.29drugs other than alcohol. The terms, compensation and removal of members shall be as
22.30provided in section 15.059. The council expires June 30, 2014, or in accordance with
22.31section 3D.21, whichever is later. The commissioner of human services shall appoint
22.32members whose terms end in even-numbered years. The commissioner of health shall
22.33appoint members whose terms end in odd-numbered years.

23.1    Sec. 3. Minnesota Statutes 2012, section 256B.093, subdivision 1, is amended to read:
23.2    Subdivision 1. State traumatic brain injury program. The commissioner of
23.3human services shall:
23.4    (1) maintain a statewide traumatic brain injury program;
23.5    (2) supervise and coordinate services and policies for persons with traumatic brain
23.6injuries;
23.7    (3) contract with qualified agencies or employ staff to provide statewide
23.8administrative case management and consultation;
23.9    (4) maintain an advisory committee to provide recommendations in reports to the
23.10commissioner regarding program and service needs of persons with brain injuries;
23.11    (5) investigate the need for the development of rules or statutes for the brain injury
23.12home and community-based services waiver;
23.13    (6) investigate present and potential models of service coordination which can be
23.14delivered at the local level; and
23.15    (7) the advisory committee required by clause (4) must consist of no fewer than ten
23.16members and no more than 30 members. The commissioner shall appoint all advisory
23.17committee members to one- or two-year terms and appoint one member as chair.
23.18Notwithstanding section 15.059, subdivision 5, the advisory committee does not terminate
23.19until June 30, 2014, or in accordance with section 3D.21, whichever is later.

23.20    Sec. 4. Minnesota Statutes 2012, section 260.835, subdivision 2, is amended to read:
23.21    Subd. 2. Expiration. Notwithstanding section 15.059, subdivision 5, the American
23.22Indian Child Welfare Advisory Council expires June 30, 2014, or in accordance with
23.23section 3D.21, whichever is later.

23.24    Sec. 5. Laws 2012, chapter 278, article 1, section 5, is amended to read:
23.25    Sec. 5. COUNCIL ON BLACK MINNESOTANS.
23.26The Office of the Legislative Auditor should conduct a financial audit of the
23.27Council on Black Minnesotans by December 1, 2013. In its next report to the Sunset
23.28Advisory Commission governor and legislature under Minnesota Statutes, section 3.9225,
23.29subdivision 7, the Council on Black Minnesotans must respond to any issues raised in this
23.30audit and to issues raised in previous audits.

23.31    Sec. 6. Laws 2012, chapter 278, article 2, section 27, is amended to read:
23.32    Sec. 27. HEALTH-RELATED LICENSING BOARDS REPORTING
23.33OBLIGATIONS.
24.1    (a) By January 15, 2013, the health-related boards and the commissioner of health,
24.2as the regulator for occupational therapy practitioners, speech-language pathologists,
24.3audiologists, and hearing instrument dispensers, shall jointly study and submit draft
24.4legislation to the Sunset Commission and the chairs and ranking minority members of
24.5the legislative committees with jurisdiction over health and human services developing
24.6consistent reporting requirements that require institutions, professional societies, other
24.7licensed professionals, courts, insurers, and other entities to report conduct constituting
24.8grounds for disciplinary action to the respective regulatory entity. The study and draft
24.9legislation shall include a self-reporting requirement that requires the licensed individual
24.10to report to the respective regulatory entity any action that would require a report to be
24.11filed by another specified entity. The study and draft legislation shall also include penalties
24.12that may be imposed for failure to report.
24.13    (b) Health-related boards with existing statutory reporting obligations shall
24.14participate to ensure that the existing reporting requirements are consistent with the
24.15recommended requirements and draft legislation.

24.16    Sec. 7. Laws 2012, chapter 278, article 2, section 34, is amended to read:
24.17    Sec. 34. BOARD OF MEDICAL PRACTICE REVIEW.
24.18    The legislative auditor is requested to conduct a special investigation of the
24.19Minnesota Board of Medical Practice and its implementation of the Medical Practice
24.20Act. The legislative auditor is requested to submit the results of the investigation to the
24.21Legislative Audit Commission, the Sunset Advisory Commission, and the chairs and
24.22ranking minority members of the senate and house of representatives policy committees
24.23having jurisdiction over the board by January 1, 2013.

24.24    Sec. 8. REVISOR'S INSTRUCTION.
24.25The revisor of statutes shall delete all references to "the Sunset Advisory
24.26Commission" wherever they appear in Minnesota Statutes, and shall make other changes
24.27as necessary in Minnesota Statutes as a result of the enactment of this article.

24.28    Sec. 9. REPEALER.
24.29(a) Minnesota Statutes 2012, sections 3D.01; 3D.02; 3D.03; 3D.04; 3D.045; 3D.05;
24.303D.06; 3D.065; 3D.07; 3D.08; 3D.09; 3D.10; 3D.11; 3D.12; 3D.13; 3D.14; 3D.15; 3D.16;
24.313D.17; 3D.18; 3D.19; 3D.20; and 3D.21, subdivisions 2, 3, 4, 5, 6, 7, and 8, are repealed.
24.32(b) Laws 2012, chapter 278, article 1, section 6, is repealed.

25.1    Sec. 10. EFFECTIVE DATE.
25.2Sections 1 to 9 are effective the day following final enactment.

25.3ARTICLE 3
25.4STATE GOVERNMENT OPERATIONS

25.5    Section 1. [5.38] AUTHORITY TO ACCEPT FUNDS.
25.6The secretary of state may enter into agreements with a local governmental unit to
25.7provide a technological service or project to enhance the state's election system. The
25.8secretary of state and the local governmental unit shall agree to the amount of consideration
25.9to be paid under the agreement. In addition, the secretary of state may accept federal funds
25.10for election purposes. If the secretary of state accepts federal funds and the terms of the
25.11grant do not require the state to maintain its effort, section 3.3005 does not apply. If the
25.12secretary of state accepts federal funds and the terms of the grant do require the state to
25.13maintain its effort, section 3.3005 applies. The funds accepted under this section must be
25.14deposited in accounts in the special revenue fund and are appropriated to the secretary of
25.15state for the uses authorized by this section. The secretary of state shall report by January
25.1615 each year to the chair and ranking minority members of the finance committees of the
25.17house of representatives and the senate with jurisdiction over the secretary of state the total
25.18amounts received in the preceding calendar year, the sources of those funds, and the uses
25.19to which those funds were or will be put. For purposes of this section, "local governmental
25.20unit" means a county, home rule charter or statutory city, town, or school district.
25.21EFFECTIVE DATE.This section is effective the day following final enactment.

25.22    Sec. 2. [5B.12] AUTHORITY TO ACCEPT FUNDS.
25.23Notwithstanding sections 16A.013 to 16A.016, the secretary of state may accept
25.24funds contributed by individuals and may apply for grants from charitable foundations, to
25.25be used for the address confidentiality program established in section 5B.03. In addition,
25.26the secretary of state may apply for grants from the federal government for purposes of
25.27the address confidentiality program. If the secretary of state accepts federal funds and the
25.28terms of the grant do not require the state to maintain its effort, section 3.3005 does not
25.29apply. If the secretary of state accepts federal funds and the terms of the grant do require
25.30the state to maintain its effort, section 3.3005 applies. The funds accepted under this
25.31section must be deposited in accounts in the special revenue fund and are appropriated
25.32to the secretary of state for use in the address confidentiality program. The secretary of
25.33state shall report by January 15 each year to the chair and ranking minority members of
26.1the finance committees of the house of representatives and the senate with jurisdiction
26.2over the secretary of state the total amounts received in the preceding calendar year, the
26.3sources of those funds, except that contributions from program participants, if any, must
26.4be aggregated and the names of program participants will not be reported, and the uses
26.5to which those funds were or will be put.
26.6EFFECTIVE DATE.This section is effective the day following final enactment.

26.7    Sec. 3. [6.475] CITY AND TOWN ACCOUNTING SYSTEM SOFTWARE.
26.8(a) The state auditor may charge a onetime user fee to cities, towns, and other
26.9government entities for the development, maintenance, and distribution of the small city
26.10and town accounting system software. The amount of this fee shall be set by the state
26.11auditor in consultation with the Minnesota Association of Townships, the League of
26.12Minnesota Cities, and the Minnesota Association of Small Cities.
26.13(b) A city and town accounting systems (CTAS) account is established in the special
26.14revenue fund.
26.15(c) Amounts received under paragraph (a) shall be credited to the CTAS account in
26.16the special revenue fund and are appropriated to the state auditor for all costs associated
26.17with the development, maintenance, and distribution of the small city and town accounting
26.18system software. If at any time the small city and town accounting system software ceases
26.19to be offered by the state auditor, any amount remaining in the CTAS account shall be
26.20equitably refunded to users. The amount of the refund shall be set by the state auditor
26.21in consultation with the Minnesota Association of Townships, the League of Minnesota
26.22Cities, and the Minnesota Association of Small Cities, and the account shall be closed.

26.23    Sec. 4. Minnesota Statutes 2012, section 13.591, subdivision 3, is amended to read:
26.24    Subd. 3. Business as vendor. (a) Data submitted by a business to a government
26.25entity in response to a request for bids as defined in section 16C.02, subdivision 11, are
26.26private or nonpublic until the bids are opened. Once the bids are opened, the time and date
26.27specified in the solicitation that bids are due, at which time the name of the bidder and the
26.28dollar amount specified in the response are read and become public. All other data in a
26.29bidder's response to a bid are private or nonpublic data until completion of the selection
26.30process. For purposes of this section, "completion of the selection process" means that
26.31the government entity has completed its evaluation and has ranked the responses. After a
26.32government entity has completed the selection process, all remaining data submitted by
26.33all bidders are public with the exception of trade secret data as defined and classified in
27.1section 13.37. A statement by a bidder that submitted data are copyrighted or otherwise
27.2protected does not prevent public access to the data contained in the bid.
27.3If all responses to a request for bids are rejected prior to completion of the selection
27.4process, all data, other than that made public at the bid opening the name of the bidder
27.5and the dollar amount specified in the response, remain private or nonpublic until a
27.6resolicitation of bids results in completion of the selection process or a determination is
27.7made to abandon the purchase. If the rejection occurs after the completion of the selection
27.8process, the data remain public. If a resolicitation of bids does not occur within one year
27.9of the bid opening date, the remaining data become public.
27.10(b) Data submitted by a business to a government entity in response to a request
27.11for proposal, as defined in section 16C.02, subdivision 12, are private or nonpublic until
27.12the responses are opened. Once the responses are opened, the time and date specified in
27.13the solicitation that proposals are due, at which time the name of the responder is read
27.14and becomes public. All other data in a responder's response to a request for proposal are
27.15private or nonpublic data until completion of the evaluation process. For purposes of this
27.16section, "completion of the evaluation process" means that the government entity has
27.17completed negotiating the contract with the selected vendor. After a government entity
27.18has completed the evaluation process, all remaining data submitted by all responders are
27.19public with the exception of trade secret data as defined and classified in section 13.37. A
27.20statement by a responder that submitted data are copyrighted or otherwise protected does
27.21not prevent public access to the data contained in the response.
27.22If all responses to a request for proposal are rejected prior to completion of the
27.23evaluation process, all data, other than that made public at the response opening, the
27.24names of the responders, remain private or nonpublic until a resolicitation of the requests
27.25for proposal results in completion of the evaluation process or a determination is made
27.26to abandon the purchase. If the rejection occurs after the completion of the evaluation
27.27process, the data remain public. If a resolicitation of proposals does not occur within one
27.28year of the proposal opening date, the remaining data become public.

27.29    Sec. 5. Minnesota Statutes 2012, section 16C.02, subdivision 13, is amended to read:
27.30    Subd. 13. Resident vendor. "Resident vendor" means a person, firm, or corporation
27.31that:
27.32(1) is authorized to conduct business in the state of Minnesota on the date a
27.33solicitation for a contract is first advertised or announced. It includes a foreign corporation
27.34duly authorized to engage in business in Minnesota.;
28.1(2) has paid unemployment taxes or income taxes in this state during the 12 calendar
28.2months immediately preceding submission of the bid or proposal for which any preference
28.3is sought;
28.4(3) has a business address in the state; and
28.5(4) has affirmatively claimed that status in the bid or proposal submission.

28.6    Sec. 6. Minnesota Statutes 2012, section 16C.06, subdivision 2, is amended to read:
28.7    Subd. 2. Solicitation process. (a) A formal solicitation must be used to acquire all
28.8goods, service contracts, and utilities estimated at or more than $50,000, or in the case of
28.9a Department of Transportation solicitation, at or more than $100,000, unless otherwise
28.10provided for. All formal responses must be sealed when they are received and must be
28.11opened in public at the hour stated in the solicitation made publicly available as required
28.12by section 13.591. Formal responses must be authenticated by the responder in a manner
28.13specified by the commissioner.
28.14(b) An informal solicitation may be used to acquire all goods, service contracts,
28.15and utilities that are estimated at less than $50,000, or in the case of a Department of
28.16Transportation solicitation, at or less than $100,000. The number of vendors required to
28.17receive solicitations may be determined by the commissioner. Informal responses must be
28.18authenticated by the responder in a manner specified by the commissioner.

28.19    Sec. 7. Minnesota Statutes 2012, section 16C.09, is amended to read:
28.2016C.09 PROCEDURE FOR SERVICE CONTRACTS.
28.21(a) Before entering into or approving a service contract valued in excess of $5,000,
28.22the commissioner must determine, at least, that:
28.23(1) no current state employee is able and available to perform the services called
28.24for by the contract;
28.25(2) the work to be performed under the contract is necessary to the agency's
28.26achievement of its statutory responsibilities and there is statutory authority to enter into
28.27the contract;
28.28(3) the contract will not establish an employment relationship between the state or
28.29the agency and any persons performing under the contract;
28.30(4) the contractor and agents are not employees of the state;
28.31(5) the contracting agency has specified a satisfactory method of evaluating and
28.32using the results of the work to be performed; and
28.33(6) the combined contract and amendments will not exceed five years without
28.34specific, written approval by the commissioner according to established policy, procedures,
29.1and standards, or unless otherwise provided for by law. The term of the original contract
29.2must not exceed two years, unless the commissioner determines that a longer duration is
29.3in the best interest of the state.
29.4(b) For purposes of paragraph (a), clause (1), employees are available if qualified and:
29.5(1) are already doing the work in question; or
29.6(2) are on layoff status in classes that can do the work in question.
29.7An employee is not available if the employee is doing other work, is retired, or has decided
29.8not to do the work in question.
29.9(c) This section does not apply to an agency's use of inmates pursuant to sections
29.10241.20 to 241.23 or to an agency's use of persons required by a court to provide:
29.11(1) community service; or
29.12(2) conservation or maintenance services on lands under the jurisdiction and control
29.13of the state.

29.14    Sec. 8. Minnesota Statutes 2012, section 16C.10, subdivision 6, is amended to read:
29.15    Subd. 6. Expenditures under specified amounts. The solicitation process
29.16described in this chapter is not required for:
29.17(1) acquisition of goods or services, other than professional or technical services,
29.18in an amount of $2,500 $5,000 or less; or
29.19(2) acquisition of professional or technical services in an amount of $5,000 or less,
29.20provided the requirements of section 16C.08, subdivisions 3 to 6, are met.

29.21    Sec. 9. Minnesota Statutes 2012, section 16C.145, is amended to read:
29.2216C.145 NONVISUAL TECHNOLOGY ACCESS STANDARDS.
29.23    (a) The commissioner shall develop nonvisual technology access standards. The
29.24standards must be included in all contracts for the procurement of information technology
29.25by, or for the use of, agencies, political subdivisions, and the Minnesota State Colleges and
29.26Universities. The University of Minnesota is encouraged to consider similar standards.
29.27    (b) The nonvisual access standards must include the following minimum
29.28specifications:
29.29    (1) that effective, interactive control and use of the technology including the
29.30operating system, applications programs, prompts, and format of the data presented, are
29.31readily achievable by nonvisual means;
29.32    (2) that the nonvisual access technology must be compatible with information
29.33technology used by other individuals with whom the blind or visually impaired individual
29.34must interact;
30.1    (3) that nonvisual access technology must be integrated into networks used to share
30.2communications among employees, program participants, and the public; and
30.3    (4) that the nonvisual access technology must have the capability of providing
30.4equivalent access by nonvisual means to telecommunications or other interconnected
30.5network services used by persons who are not blind or visually impaired.
30.6    (c) Nothing in this section requires the installation of software or peripheral devices
30.7used for nonvisual access when the information technology is being used by individuals
30.8who are not blind or visually impaired.
30.9    (d) Executive branch state agencies subject to section 16E.03, subdivision 9, are not
30.10required to include nonvisual technology access standards developed under this section in
30.11contracts for the procurement of information technology.

30.12    Sec. 10. Minnesota Statutes 2012, section 16C.33, subdivision 3, is amended to read:
30.13    Subd. 3. Solicitation of qualifications or proposals. (a) Every user agency, except
30.14the Capitol Area Architectural and Planning Board, shall submit a written request for a
30.15design-builder for its project to the commissioner who shall forward the request to the
30.16board, consistent with section 16B.33, subdivision 3, paragraph (a). The University of
30.17Minnesota shall follow the process in subdivision 4 to select design-builders for projects
30.18that are subject to section 16B.33. The written request must include a description of the
30.19project, the total project cost, a description of any special requirements or unique features
30.20of the proposed project, and other information requested by the board which will assist the
30.21board in carrying out its duties and responsibilities set forth in this section.
30.22(b) A request for qualifications or proposals soliciting design-builders shall be
30.23prepared for each design-build contract pursuant to subdivision 5 or 7. The request for
30.24qualifications or proposals shall contain, at a minimum, the following elements:
30.25(1) the identity of the agency for which the project will be built and that will award
30.26the design-build contract;
30.27(2) procedures for submitting qualifications or proposals, the criteria for evaluation
30.28of qualifications or proposals and the relative weight for each criterion and subcriterion,
30.29and the procedures for making awards according to the stated criteria and subcriteria,
30.30including a reference to the requirements of this section;
30.31(3) the proposed terms and conditions for the contract;
30.32(4) the desired qualifications of the design-builder and the desired or permitted
30.33areas of construction to be performed by named members of the design-build team, if
30.34applicable. The primary designer shall be a named member of the design-build team;
30.35(5) the schedule for commencement and completion of the project;
31.1(6) any applicable budget limits for the project;
31.2(7) the requirements for insurance and statutorily required performance and payment
31.3bonds;
31.4(8) the identification and location of any other information in the possession or
31.5control of the agency that the user agency determines is material, which may include
31.6surveys, soils reports, drawings or models of existing structures, environmental studies,
31.7photographs, or references to public records;
31.8(9) for a design-build design and price-based selection process, the request shall
31.9also include the design criteria package, including the performance and technical
31.10requirements for the project, and the functional and operational elements for the delivery
31.11of the completed project. The request shall also contain a description of the drawings,
31.12specifications, or other submittals to be included with the proposal, with guidance as to
31.13the form and level of completeness of the drawings, specifications or submittals that will
31.14be acceptable, and the stipend to be paid to the design-builders selected to submit the
31.15above described information; and
31.16(10) the criteria shall not impose unnecessary conditions beyond reasonable
31.17requirements to ensure maximum participation of qualified design-builders. The criteria
31.18shall not consider the collective bargaining status of the design-builder.
31.19(c) Notice of requests for qualifications or proposals must be advertised in the State
31.20Register a manner designated by the commissioner.

31.21    Sec. 11. Minnesota Statutes 2012, section 16C.34, subdivision 1, is amended to read:
31.22    Subdivision 1. Solicitation of qualifications. (a) Every user agency, except
31.23the Capitol Area Architectural and Planning Board, shall submit a written request for
31.24proposals for a construction manager at risk for its project to the commissioner. The
31.25written request for proposals must include a description of the project, the estimated cost
31.26of completing the project, a description of any special requirements or unique features of
31.27the proposed project, and other information which will assist the commissioner in carrying
31.28out its duties and responsibilities set forth in this section.
31.29(b) The commissioner may include in the request for qualifications criteria a
31.30requirement that the proposer include the overhead and fee that the construction manager
31.31at risk proposes to charge for its services.
31.32(c) A request for qualifications shall be prepared for each construction manager at
31.33risk contract as provided in this section. The request for qualifications shall contain, at a
31.34minimum, the following elements:
32.1(1) the identity of the agency for which the project will be built and that will award
32.2the construction manager at risk contract;
32.3(2) procedures for submitting qualifications, the criteria and subcriteria for evaluation
32.4of qualifications and the relative weight for each criteria and subcriteria, and the procedures
32.5for making awards in an open, competitive, and objective manner, and according to the
32.6stated criteria and subcriteria, including a reference to the requirements of this section;
32.7(3) the terms and conditions for the contract;
32.8(4) the qualifications that the construction manager at risk shall be desired to have;
32.9(5) a schedule for commencement and completion of the project;
32.10(6) any applicable budget limits for the project;
32.11(7) requirements for insurance, statutorily required performance and payment bonds;
32.12(8) identification and location of any other information in the possession or control
32.13of the agency that the user agency determines is material, which may include surveys, soils
32.14reports, drawings or models of existing structures, environmental studies, photographs, or
32.15references to public records; and
32.16(9) criteria shall not impose unnecessary conditions beyond reasonable requirements
32.17to ensure maximum participation of construction managers at risk. The criteria shall not
32.18consider the collective bargaining status of the construction manager at risk.
32.19(d) Notice of requests for qualifications must be advertised in the State Register a
32.20manner designated by the commissioner.

32.21    Sec. 12. [16E.0466] STATE AGENCY TECHNOLOGY PROJECTS.
32.22    Every state agency with an information or telecommunications project must consult
32.23with the Office of Enterprise Technology to determine the IT cost of the project. Upon
32.24agreement between the commissioner of a particular agency and the chief information
32.25officer, the agency must transfer the IT cost portion of the project to the Office of
32.26Enterprise Technology, unless the commissioner of the Office of Enterprise Technology
32.27determines that an agreement is not required. Those agencies specified in section 16E.016,
32.28paragraph (d), are exempt from the requirements of this section.

32.29    Sec. 13. Minnesota Statutes 2012, section 16E.07, is amended by adding a subdivision
32.30to read:
32.31    Subd. 12. Private entity services; fee authority. (a) The office may enter into a
32.32contract with a private entity to manage, maintain, support, and expand North Star and
32.33online government information services to citizens and businesses.
33.1    (b) A contract established under paragraph (a) may provide for compensation of the
33.2private entity through a fee established under paragraph (c).
33.3    (c) The office may charge and may authorize a private entity that enters into a
33.4contract under paragraph (a) to charge a convenience fee for users of North Star and
33.5online government information services up to a total of $2 per transaction, provided
33.6that no fee shall be charged for viewing or inspecting data. The office shall consider the
33.7recommendation of the E-Government Advisory Council under section 16E.071 in setting
33.8the convenience fee. A fee established under this paragraph is in addition to any fees
33.9or surcharges authorized under other law.
33.10    (d) Receipts from the convenience fee shall be deposited in the North Star account
33.11established in subdivision 7. Notwithstanding section 16A.1285, subdivision 2, receipts
33.12credited to the account are appropriated to the office for payment to the contracted private
33.13entity under paragraph (a). In lieu of depositing the receipts in the North Star account, the
33.14office can directly transfer the receipts to the private entity or allow the private entity to
33.15retain the receipts pursuant to a contract established under this subdivision.
33.16    (e) The office shall report to the chairs and ranking minority members of the house
33.17of representatives and senate committees with jurisdiction over state government finance
33.18by January 15 of each odd-numbered year regarding the convenience fee receipts and
33.19the status of North Star projects and online government information services developed
33.20and supported by convenience fee receipts.

33.21    Sec. 14. [16E.071] E-GOVERNMENT ADVISORY COUNCIL.
33.22    Subdivision 1. E-Government Advisory Council established. The E-Government
33.23Advisory Council is established for the purpose of improving online government
33.24information services to citizens and businesses.
33.25    Subd. 2. Membership. The council shall consist of nine members as follows:
33.26    (1) the state chief information officer or the chief information officer's designee;
33.27    (2) one public member appointed by the speaker of the house;
33.28    (3) one public member appointed by the senate Subcommittee on Committees of the
33.29Rules and Administration Committee; and
33.30    (4) six members appointed by the governor representing state executive branch
33.31agencies that are actively involved with private businesses, the private business
33.32community, or the public.
33.33    Subd. 3. Initial appointments and first meeting. Appointing authorities shall make
33.34the first appointments to the council by September 1, 2013. The first member appointed by
33.35the speaker of the house shall serve until the first Monday in January, 2015. The governor
34.1shall designate three initial appointees to serve until the first Monday in January 2015. The
34.2term of the other three initial appointees of the governor and the first member appointed
34.3by the senate shall be until the first Monday in January 2017. The chief information officer
34.4or the chief information officer's designee shall convene the council's first meeting by
34.5November 1, 2013, and shall act as chair until the council elects a chair at its first meeting.
34.6    Subd. 4. Terms; removal; vacancies; compensation. Membership terms, removal
34.7of member, and filling of vacancies are as provided in section 15.059, except that members
34.8shall not receive compensation or be reimbursed for expenses and except that terms of
34.9initial appointees are as provided in subdivision 3.
34.10    Subd. 5. Chair. The council shall annually elect a chair from its members.
34.11    Subd. 6. Duties. The council shall recommend to the office the priority of North
34.12Star projects and online government information services to be developed and supported
34.13by convenience fee receipts. The council shall provide oversight on the convenience fee
34.14and its receipts in the North Star account. The council shall by majority quorum vote to
34.15recommend to approve or disapprove establishing the convenience fee on particular types
34.16of transactions, the fee amount, and any changes in the fee amount. If the convenience fee
34.17receipts are retained by or transferred to the private entity in lieu of deposit in the North
34.18Star account, the council may audit the private entity's convenience fee receipts, expenses
34.19paid by the receipts, and associated financial statements.
34.20    Subd. 7. Staff. The office shall provide administrative support to the council.
34.21    Subd. 8. Sunset. The council shall expire the first Monday in January 2017.
34.22    Subd. 9. Reports. By June 1, 2014, and every year thereafter, the council shall
34.23report to the office with its recommendations regarding establishing the convenience fee,
34.24the fee amount, and changes to the fee amount.

34.25    Sec. 15. Minnesota Statutes 2012, section 32C.04, is amended to read:
34.2632C.04 ACCOUNTS; AUDITS.
34.27The authority may establish funds and accounts that it determines to be reasonable and
34.28necessary to conduct the business of the authority. The board shall provide for and pay the
34.29cost of an independent annual audit of its official books and records be subject to audit by
34.30the state legislative auditor. A copy of this an audit must be filed with the secretary of state.

34.31    Sec. 16. Minnesota Statutes 2012, section 469.3201, is amended to read:
34.32469.3201 STATE LEGISLATIVE AUDITOR; AUDITS OF JOB
34.33OPPORTUNITY BUILDING ZONES AND BUSINESS SUBSIDY AGREEMENTS.
35.1    As resources allow, the Office of the State Auditor legislative auditor must annually
35.2 audit the creation and operation of all job opportunity building zones and business subsidy
35.3agreements entered into under Minnesota Statutes, sections 469.310 to 469.320. To the
35.4extent necessary to perform this audit, the state auditor may request from the commissioner
35.5of revenue tax return information of taxpayers who are eligible to receive tax benefits
35.6authorized under section 469.315. To the extent necessary to perform this audit, the state
35.7auditor may request from the commissioner of employment and economic development
35.8wage detail report information required under section 268.044 of taxpayers eligible to
35.9receive tax benefits authorized under section 469.315. All public officials and parties to
35.10the agreements shall comply with the requirements of section 3.978, subdivision 2.

35.11    Sec. 17. REVISOR'S INSTRUCTION.
35.12In the next and subsequent editions of Minnesota Statutes, the revisor of statutes shall:
35.13(1) substitute the term "Office of MN.IT Services" for "Office of Enterprise
35.14Technology" in each place where the latter term appears; and
35.15(2) substitute the term "MN.IT services revolving fund" for "enterprise technology
35.16revolving fund" in each place where the latter term appears.

35.17ARTICLE 4
35.18LICENSING BOARDS

35.19    Section 1. Minnesota Statutes 2012, section 154.001, is amended by adding a
35.20subdivision to read:
35.21    Subd. 4. Comprehensive examination. "Comprehensive examination" means all
35.22parts of a test administered by the board, including but not limited to written, oral, and
35.23practical components.

35.24    Sec. 2. Minnesota Statutes 2012, section 154.003, is amended to read:
35.25154.003 FEES.
35.26    (a) The fees collected, as required in this chapter, chapter 214, and the rules of the
35.27board, shall be paid to the board. The board shall deposit the fees in the general fund
35.28in the state treasury.
35.29    (b) The board shall charge the following fees:
35.30    (1) examination and certificate, registered barber, $85;
35.31(2) retake of written examination, registered barber, $10;
35.32    (2) (3) examination and certificate, apprentice, $80;
36.1(4) retake of written examination, apprentice, $10;
36.2    (3) (5) examination, instructor, $180;
36.3    (4) (6) certificate, instructor, $65;
36.4    (5) (7) temporary teacher or apprentice permit, $80;
36.5    (6) (8) renewal of license, registered barber, $80;
36.6    (7) (9) renewal of license, apprentice, $70;
36.7    (8) (10) renewal of license, instructor, $80;
36.8    (9) (11) renewal of temporary teacher permit, $65;
36.9    (10) (12) student permit, $45;
36.10(13) renewal of student permit, $25;
36.11    (11) (14) initial shop registration, $85;
36.12    (12) (15) initial school registration, $1,030;
36.13    (13) (16) renewal shop registration, $85;
36.14    (14) (17) renewal school registration, $280;
36.15    (15) (18) restoration of registered barber license, $95;
36.16    (16) (19) restoration of apprentice license, $90;
36.17    (17) (20) restoration of shop registration, $105;
36.18    (18) (21) change of ownership or location, $55;
36.19    (19) (22) duplicate license, $40; and
36.20    (20) (23) home study course, $95 $75;
36.21(24) letter of license verification, $25; and
36.22(25) reinspection, $100.

36.23    Sec. 3. Minnesota Statutes 2012, section 154.02, is amended to read:
36.24154.02 WHAT CONSTITUTES BARBERING.
36.25Any one or any combination of the following practices when done upon the head
36.26and neck for cosmetic purposes and not for the treatment of disease or physical or mental
36.27ailments and when done for payment directly or indirectly or without payment for the
36.28public generally constitutes the practice of barbering within the meaning of sections
36.29154.001 , 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26:
36.30to shave the face or neck, trim the beard, cut or bob the hair of any person of either sex
36.31for compensation or other reward received by the person performing such service or any
36.32other person; to give facial and scalp massage or treatments with oils, creams, lotions,
36.33or other preparations either by hand or mechanical appliances; to singe, shampoo the
36.34hair, or apply hair tonics; or to apply cosmetic preparations, antiseptics, powders, oils,
36.35clays, or lotions to hair, scalp, face, or neck.

37.1    Sec. 4. Minnesota Statutes 2012, section 154.05, is amended to read:
37.2154.05 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A
37.3REGISTERED BARBER.
37.4A person is qualified to receive a certificate of registration as a registered barber:
37.5(1) who is qualified under the provisions of section 154.06;
37.6(2) who has practiced as a registered apprentice for a period of 12 months under the
37.7immediate personal supervision of a registered barber; and
37.8(3) who has passed an examination conducted by the board to determine fitness to
37.9practice barbering.
37.10An apprentice applicant for a certificate of registration to practice as a registered
37.11barber who fails to pass the comprehensive examination conducted by the board and
37.12who fails to pass a onetime retake of the written examination, shall continue to practice
37.13as an apprentice for an additional two months 300 hours before being again entitled to
37.14take eligible to retake the comprehensive examination for a registered barber as many
37.15times as necessary to pass.

37.16    Sec. 5. Minnesota Statutes 2012, section 154.06, is amended to read:
37.17154.06 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A
37.18REGISTERED APPRENTICE.
37.19A person is qualified to receive a certificate of registration as a registered apprentice:
37.20(1) who has completed at least ten grades of an approved school;
37.21(2) who has graduated from a barber school approved by the a barber board within
37.22the previous four years; and
37.23(3) who has passed an examination conducted by the board to determine fitness to
37.24practice as a registered apprentice. An applicant who graduated from a barber school
37.25approved by a barber board more than four years prior to application is required to
37.26complete a further course of study of at least 500 hours.
37.27An applicant for a an initial certificate of registration to practice as an apprentice,
37.28 who fails to pass the comprehensive examination conducted by the board, and who fails to
37.29pass a onetime retake of the written examination, is required to complete a further course
37.30of study of at least 500 hours, of not more than eight hours in any one working day, in a
37.31barber school approved by the board before being eligible to retake the comprehensive
37.32examination as many times as necessary to pass.
37.33A certificate of registration of an apprentice shall be valid for four years from the
37.34date the certificate of registration is issued by the board and shall not be renewed for a fifth
37.35year. During the four-year period the certificate of registration shall remain in full force
38.1and effect only if the apprentice complies with all the provisions of sections 154.001,
38.2154.002 , 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26, including
38.3the payment of an annual fee, and the rules of the board.
38.4If a registered apprentice, during the term in which the certificate of registration is in
38.5effect, enters full-time active duty in the armed forces of the United States of America,
38.6the expiration date of the certificate of registration shall be extended by a period of time
38.7equal to the period or periods of active duty.
38.8If a registered apprentice graduates from a barber school approved by the board and
38.9is issued a certificate of registration while incarcerated by the Department of Corrections
38.10of the Federal Bureau of Prisons, the expiration date of the certificate of registration shall
38.11be extended one time so that it expires four years from the date of first release from a
38.12correctional facility.

38.13    Sec. 6. Minnesota Statutes 2012, section 154.065, subdivision 2, is amended to read:
38.14    Subd. 2. Qualifications. A person is qualified to receive a certificate of registration
38.15as an instructor of barbering who:
38.16(1) is a graduate from of an approved high school, or its equivalent, as determined
38.17by examination by the Department of Education;
38.18(2) has qualified for a teacher's or instructor's vocational certificate; successfully
38.19completed vocational instructor training from a board-approved program or accredited
38.20college or university program that includes the following courses or their equivalents as
38.21determined by the board:
38.22(i) introduction to career and technical education training;
38.23(ii) philosophy and practice of career and technical education;
38.24(iii) course development for career and technical education;
38.25(iv) instructional methods for career and technical education; and
38.26(v) human relations;
38.27(3) is currently a registered barber and has at least three years experience as a
38.28registered barber in this state, or its equivalent as determined by the board; and
38.29(4) has passed an examination conducted by the board to determine fitness to
38.30instruct in barbering.
38.31A certificate of registration under this section is provisional until a teacher's or
38.32instructor's vocational certificate has been issued by the Department of Education. A
38.33provisional certificate of registration is valid for 30 days and is not renewable.

38.34    Sec. 7. Minnesota Statutes 2012, section 154.07, subdivision 1, is amended to read:
39.1    Subdivision 1. Admission requirements; course of instruction. No barber school
39.2shall be approved by the board unless it requires, as a prerequisite to admission, ten grades
39.3of an approved school or its equivalent, as determined by an examination conducted by
39.4the commissioner of education, which shall issue a certificate that the student has passed
39.5the required examination, and unless it requires, as a prerequisite to graduation, a course
39.6of instruction of at least 1,500 hours, of not more than eight hours in any one working day.
39.7The course of instruction must include the following subjects: scientific fundamentals
39.8for barbering; hygiene; practical study of the hair, skin, muscles, and nerves; structure of
39.9the head, face, and neck; elementary chemistry relating to sterilization and antiseptics;
39.10diseases of the skin, hair, and glands; massaging and manipulating the muscles of the face
39.11and neck; haircutting; shaving; trimming the beard; bleaching, tinting and dyeing the hair;
39.12and the chemical waving and straightening of hair.

39.13    Sec. 8. Minnesota Statutes 2012, section 154.08, is amended to read:
39.14154.08 APPLICATION; FEE.
39.15Each applicant for an examination shall:
39.16(1) make application to the Board of Barber Examiners on blank forms prepared and
39.17furnished by it, the application to contain proof under the applicant's oath of the particular
39.18qualifications and identity of the applicant;
39.19(2) furnish to the board two five-inch x three-inch signed photographs of the
39.20applicant, one to accompany the application and one to be returned to the applicant,
39.21to be presented to the board when the applicant appears for examination provide all
39.22documentation required in support of the application; and
39.23(3) pay to the board the required fee; and
39.24(4) present a government-issued photo identification as proof of identity upon
39.25application and when the applicant appears for examination.

39.26    Sec. 9. Minnesota Statutes 2012, section 154.09, is amended to read:
39.27154.09 EXAMINATIONS, CONDUCT AND SCOPE.
39.28The board shall conduct examinations of applicants for certificates of registration to
39.29practice as barbers and apprentices not more than six times each year, at such time and
39.30place as the board may determine. Additional written examinations may be scheduled
39.31by the board and conducted by board staff as designated by the board. The proprietor
39.32of a barber school must file an affidavit shall be filed with the board by the proprietor
39.33of a barber school that of hours completed by students applying to take the apprentice
40.1examination have completed. Students must complete 1,500 hours in a barber school
40.2registered with approved by the board.
40.3The examination of applicants for certificates of registration as barbers and
40.4apprentices shall include both a practical demonstration and a written and oral test and
40.5embrace. The examination must cover the subjects usually taught in barber schools
40.6registered with the board.

40.7    Sec. 10. Minnesota Statutes 2012, section 154.10, subdivision 1, is amended to read:
40.8    Subdivision 1. Application. Each applicant for an initial certificate of registration
40.9shall make application to the board on forms prepared and furnished by the board with
40.10proof under oath of the particular qualifications and identity of each applicant. This
40.11application shall be accompanied by a fee prescribed by law or the rules of the board to
40.12defray the expenses of making investigation and for the examination of such applicant.

40.13    Sec. 11. Minnesota Statutes 2012, section 154.11, subdivision 1, is amended to read:
40.14    Subdivision 1. Examination of nonresidents. A person who meets all of the
40.15requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01 to
40.16154.161 , 154.19 to 154.21, and 154.24 to 154.26 and either has a license, certificate
40.17of registration, or an equivalent as a practicing barber or instructor of barbering from
40.18another state or country which in the discretion of the board has substantially the same
40.19requirements for registering barbers and instructors of barbering as required by sections
40.20154.001 , 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 or
40.21can prove by sworn affidavits practice as a barber or instructor of barbering in another
40.22state or country for at least five years immediately prior to making application in this state,
40.23shall, upon payment of the required fee, be issued a certificate of registration without
40.24examination, provided that the other state or country grants the same privileges to holders
40.25of Minnesota certificates of registration.

40.26    Sec. 12. Minnesota Statutes 2012, section 154.12, is amended to read:
40.27154.12 EXAMINATION OF NONRESIDENT APPRENTICES.
40.28A person who meets all of the requirements for registration as a barber in sections
40.29154.001 , 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and
40.30who has a license, a certificate of registration, or its equivalent as an apprentice in a state
40.31or country which in the discretion of the board has substantially the same requirements for
40.32registration as an apprentice as is provided by sections 154.001, 154.002, 154.003, 154.01
40.33to 154.161, 154.19 to 154.21, and 154.24 to 154.26, shall, upon payment of the required
41.1fee, be issued a certificate of registration without examination, provided that the other state
41.2or country grants the same privileges to holders of Minnesota certificates of registration.

41.3    Sec. 13. Minnesota Statutes 2012, section 154.14, is amended to read:
41.4154.14 CERTIFICATES OF REGISTRATION AND TEMPORARY PERMITS
41.5TO BE DISPLAYED.
41.6Every holder of a certificate of registration as a registered barber or registered
41.7apprentice or temporary apprentice permit shall display it the certificate or permit, with a
41.8photograph of the certificate or permit holder that meets the same standards as required for
41.9a United States passport, in a conspicuous place adjacent to or near the chair where work
41.10is performed. Every holder of a certificate of registration as an instructor of barbering or
41.11as a barber school, of a temporary permit as an instructor of barbering, shall display the
41.12certificate or permit, with a photograph of the certificate or permit holder that meets the
41.13same standards as required for a United States passport, in a conspicuous place accessible
41.14to the public. Every holder of a certificate of registration as a barber school and of a shop
41.15registration card shall display it in a conspicuous place accessible to the public.

41.16    Sec. 14. Minnesota Statutes 2012, section 154.15, subdivision 2, is amended to read:
41.17    Subd. 2. Effect of failure to renew. A registered barber or a registered apprentice
41.18who has not renewed a certificate of registration may be reinstated within one year four
41.19years of such failure to renew without examination upon the payment of the required
41.20restoration fee for each year the certificate is lapsed. A registered instructor of barbering
41.21who has not renewed a certificate of registration may be reinstated within three four years
41.22of such failure to renew without examination upon payment of the required restoration fee
41.23 for each year the certificate is lapsed. All registered barbers and registered apprentices
41.24who allow their certificates of registration to lapse for more than one year four years shall
41.25be required to reexamine before being issued a certificate of registration. All registered
41.26instructors of barbering who allow their certificates of registration to lapse for more
41.27than three four years shall be required to reexamine before being issued a certificate of
41.28registration. A barber shop owner who has not renewed the barber shop certificate for more
41.29than one year may reinstate the barber shop registration upon payment of the restoration
41.30fee for each year the shop card was lapsed. If lapsed or unlicensed status is discovered by
41.31the barber inspector during inspection, penalties under section 154.162 shall apply.

41.32    Sec. 15. [154.162] ADMINISTRATIVE PENALTIES.
41.33The board shall impose and collect the following penalties:
42.1(1) missing or lapsed shop registration discovered upon inspection; penalty imposed
42.2on shop owner: $500;
42.3(2) unlicensed or unregistered apprentice or registered barber, first occurrence
42.4discovered upon inspection; penalty imposed on shop owner and unlicensed or
42.5unregistered individual: $500; and
42.6(3) unlicensed or unregistered apprentice or registered barber, second occurrence
42.7discovered upon inspection; penalty imposed on shop owner and unlicensed or
42.8unregistered individual: $1,000.

42.9    Sec. 16. Minnesota Statutes 2012, section 154.26, is amended to read:
42.10154.26 MUNICIPALITIES MAY REGULATE HOURS; REGULATION
42.11AUTHORIZED.
42.12The governing body of any city of this state may regulate by ordinance the opening
42.13and closing hours of barber shops within its municipal limits in addition to all other
42.14applicable local regulations.

42.15    Sec. 17. [154.27] MISREPRESENTATION.
42.16No person shall represent themselves to the public, solicit business, advertise as a
42.17licensed barber or as operating a licensed barber shop, use the title or designation of barber
42.18or barber shop, engage in any other act or practice that would create the impression to
42.19members of the public that the person is a licensed barber or is operating a licensed barber
42.20shop unless the person holds the appropriate license under this chapter. Violation of this
42.21section is a petty misdemeanor.

42.22    Sec. 18. [154.28] SYMBOLS; BARBER POLE.
42.23No person shall place a barber pole in a location that would create or tend to create
42.24the impression to the public that the business is a barber shop unless the operator holds a
42.25valid license under this chapter. For the purposes of this section, "barber pole" means a
42.26red and white or red, white, and blue striped vertical cylinder commonly recognized as a
42.27barber pole. Violation of this section is a petty misdemeanor.

42.28    Sec. 19. Minnesota Statutes 2012, section 155A.23, subdivision 3, is amended to read:
42.29    Subd. 3. Cosmetology. "Cosmetology" is the practice of personal services, for
42.30compensation, for the cosmetic care of the hair, nails, and skin. These services include
42.31cleaning, conditioning, shaping, reinforcing, coloring and enhancing the body surface in
42.32the areas of the head, scalp, face, arms, hands, legs, and feet, and trunk of the body, except
43.1where these services are performed by a barber under sections 154.001, 154.002, 154.003,
43.2154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26.

43.3    Sec. 20. Minnesota Statutes 2012, section 155A.25, subdivision 1a, is amended to read:
43.4    Subd. 1a. Schedule. The fee schedule for licensees is as follows for licenses issued
43.5after June 30, 2010, and prior to July 1, 2013:
43.6(a) Three-year license fees:
43.7(1) cosmetologist, manicurist nail technician, or esthetician:
43.8(i) $90 for each initial license and a $40 nonrefundable initial license application fee,
43.9for a total of $130; and
43.10(ii) $60 for each renewal and a $15 nonrefundable renewal application fee, for
43.11a total of $75;
43.12(2) instructor or manager:
43.13(i) $120 for each initial license and a $40 nonrefundable initial license application
43.14fee, for a total of $160; and
43.15(ii) $90 for each renewal and a $15 nonrefundable renewal application fee, for a
43.16total of $105;
43.17(3) salon:
43.18(i) $130 for each initial license and a $100 nonrefundable initial license application
43.19fee, for a total of $230; and
43.20(ii) $100 for each renewal and a $50 nonrefundable renewal application fee, for a
43.21total of $150; and
43.22(4) school:
43.23(i) $1,500 for each initial license and a $1,000 nonrefundable initial license
43.24application fee, for a total of $2,500; and
43.25(ii) $1,500 for each renewal and a $500 nonrefundable renewal application fee,
43.26for a total of $2,000.
43.27(b) Penalties:
43.28(1) reinspection fee, variable;
43.29(2) manager and owner with lapsed practitioner found on inspection, $150 each;
43.30(3) lapsed practitioner or instructor found on inspection, $200;
43.31(4) lapsed salon found on inspection, $500;
43.32(5) lapsed school found on inspection, $1,000;
43.33(6) failure to display current license, $100;
43.34(7) failure to dispose of single-use equipment, implements, or materials as provided
43.35under section 155A.355, subdivision 1, $500;
44.1(8) use of prohibited razor-type callus shavers, rasps, or graters under section
44.2155A.355, subdivision 2, $500;
44.3(9) performing manicuring or cosmetology services in esthetician salon, or
44.4performing esthetician or cosmetology services in manicure salon, $500;
44.5(10) owner and manager allowing an operator to work as an independent contractor,
44.6$200;
44.7(11) operator working as an independent contractor, $100;
44.8(12) refusal or failure to cooperate with an inspection, $500;
44.9(3) (13) expired cosmetologist, manicurist, esthetician, manager, school manager,
44.10and instructor license, $45; and
44.11(4) (14) expired salon or school license, $50.
44.12(c) Administrative fees:
44.13(1) certificate of identification, $20;
44.14(2) name change, $20;
44.15(3) letter of license verification, $30;
44.16(4) duplicate license, $20;
44.17(5) processing fee, $10;
44.18(6) special event permit, $75 per year; and
44.19(7) registration of hair braiders, $20 per year.

44.20    Sec. 21. Minnesota Statutes 2012, section 155A.25, subdivision 4, is amended to read:
44.21    Subd. 4. License expiration date. The board shall, in a manner determined by the
44.22board and without the need for rulemaking under chapter 14, phase in changes to initial
44.23and renewal license expiration dates so that by January 1, 2014:
44.24(1) individual licenses expire on the last day of the licensee's birth month of the
44.25year due; and
44.26(2) salon and school licenses expire on the last day of the month of initial licensure
44.27of the year due.

44.28    Sec. 22. Minnesota Statutes 2012, section 155A.27, subdivision 4, is amended to read:
44.29    Subd. 4. Testing. All theory, practical, and Minnesota law and rule testing must
44.30be done by a board-approved provider. Appropriate standardized tests shall be used and
44.31shall include subject matter relative to the application of Minnesota law. In every case,
44.32the primary consideration shall be to safeguard the health and safety of consumers by
44.33determining the competency of the applicants to provide the services indicated.

45.1    Sec. 23. Minnesota Statutes 2012, section 155A.27, subdivision 7, is amended to read:
45.2    Subd. 7. Renewals. Renewal of license shall be for a period of three years
45.3under conditions and process established by rule and subject to continuing education
45.4requirements of section 155A.271.

45.5    Sec. 24. Minnesota Statutes 2012, section 155A.27, subdivision 10, is amended to read:
45.6    Subd. 10. Nonresident licenses. (a) A nonresident cosmetologist, manicurist, or
45.7esthetician may be licensed in Minnesota if the individual has completed cosmetology
45.8school in a state or country with the same or greater school hour requirements, has an
45.9active license in that state or country, and has passed a board-approved theory and
45.10practice-based examination, the Minnesota-specific written operator examination for
45.11cosmetologist, manicurist, or esthetician.
45.12(b) If an individual has less than the required number of school hours, the individual
45.13may be licensed in Minnesota if the individual has a current active license in another
45.14state or country for at least three years, and has passed a board-approved theory and
45.15practice-based examination, the Minnesota-specific written operator examination for
45.16cosmetologist, manicurist, or esthetician.
45.17(c) If a test is used to verify the qualifications of trained cosmetologists, the test should
45.18be translated into the nonresident's native language within the limits of available resources.
45.19(d) Applicants claiming training and experience in a foreign country shall supply
45.20official English-language translations of all required documents from a board-approved
45.21source.
45.22(e) Licenses shall not be issued under this subdivision for managers or instructors.

45.23    Sec. 25. [155A.271] CONTINUING EDUCATION REQUIREMENTS.
45.24    Subdivision 1. Continuing education requirements. Effective August 1, 2014,
45.25to qualify for license renewal under this chapter as an individual cosmetologist, nail
45.26technician, esthetician, or salon manager, the applicant must attest to the completion of
45.27four hours of continuing education credits from an accredited school or a professional
45.28association of cosmetology during the three years prior to the applicant's renewal
45.29date. One credit hour of the requirement must include instruction pertaining to state
45.30laws and rules governing the practice of cosmetology. Three credit hours must include
45.31instruction pertaining to health, safety, and sanitation matters consistent with the United
45.32States Department of Labor's Occupational Safety and Health Administration standards
45.33applicable to the practice of cosmetology, or other applicable federal health, sanitation,
45.34and safety standards, and must be regularly updated so as to incorporate newly developed
46.1standards and accepted professional best practices. Credit hours earned are valid for three
46.2years and may be applied simultaneously to all individual licenses held by a licensee under
46.3this chapter. This subdivision does not apply to instructors or inactive licenses.
46.4    Subd. 2. Schools and professional association. Only a board-licensed school of
46.5cosmetology, a postsecondary institution as defined in section 136A.103, paragraph (a), or
46.6a board-recognized professional association may offer continuing education curriculum
46.7for credit under this section. The school or professional association may offer online
46.8and independent study options to achieve maximum involvement of licensees and is
46.9encouraged to offer classes available in foreign language formats.
46.10    Subd. 3. Proof of credits. The school or professional association shall provide
46.11to licensees who attend a class a receipt to prove completion of the class. Licensees
46.12shall retain proof of their continuing education credits for one year beyond the credit's
46.13expiration. The school or professional association shall retain documentation of all
46.14licensees successfully completing a class and the licensee's credit hours for five years.
46.15    Subd. 4. Audit. The board shall conduct random audits of active licensees
46.16periodically to ensure compliance with continuing education requirements. To initiate
46.17an audit, the board shall notify an active licensee of the audit and request proof of
46.18credits earned during a specified period. The licensee must provide the requested proof
46.19to the board within 30 days of an audit notice. The board may request that a school or
46.20professional association verify a licensee's credits. The school or professional association
46.21must furnish verification, or a written statement that the credits are not verified, within
46.2215 days of the board's request for verification. If the board determines that a licensee has
46.23failed to provide proof of necessary credits earned during the specified time, the board
46.24may revoke the individual's license and may deem the individual a lapsed practitioner
46.25subject to penalty under section 155A.25 or 155A.36.

46.26    Sec. 26. Minnesota Statutes 2012, section 155A.29, subdivision 2, is amended to read:
46.27    Subd. 2. Requirements. (a) The conditions and process by which a salon is licensed
46.28shall be established by the board by rule. In addition to those requirements, no license
46.29shall be issued unless the board first determines that the conditions in clauses (1) to (5)
46.30have been satisfied:
46.31(1) compliance with all local and state laws, particularly relating to matters of
46.32sanitation, health, and safety;
46.33(2) the employment of a manager, as defined in section 155A.23, subdivision 8;
46.34(3) inspection and licensing prior to the commencing of business;
46.35(4) (3) if applicable, evidence of compliance with section 176.182; and
47.1(5) (4) evidence of continued professional liability insurance coverage of at least
47.2$25,000 for each claim and $50,000 total coverage for each policy year for each operator.
47.3(b) A licensed esthetician or manicurist who complies with the health, safety,
47.4sanitation, inspection, and insurance rules promulgated by the board to operate a salon
47.5solely for the performance of those personal services defined in section 155A.23,
47.6subdivision 5
, in the case of an esthetician, or subdivision 7, in the case of a manicurist.

47.7    Sec. 27. Minnesota Statutes 2012, section 155A.30, subdivision 1, is amended to read:
47.8    Subdivision 1. Licensing. Any person who establishes or conducts a school in this
47.9state shall be licensed. A school manager must maintain an active salon manager's license.
47.10An instructor must maintain an active operator or manager's license in the area in which
47.11the instructor holds an instructor's license.

47.12    Sec. 28. Minnesota Statutes 2012, section 155A.30, is amended by adding a
47.13subdivision to read:
47.14    Subd. 11. Limit on hours of instruction. Instruction shall not exceed ten hours
47.15per day per student.

47.16    Sec. 29. Minnesota Statutes 2012, section 155A.30, is amended by adding a
47.17subdivision to read:
47.18    Subd. 12. Instruction location. Instruction must be given within a licensed school
47.19building. Online instruction is permitted for board-approved theory-based classes.
47.20Practice-based classes must not be given online.

47.21    Sec. 30. [155A.355] PROHIBITED USES.
47.22    Subdivision 1. Single-use equipment and materials. Single-use equipment,
47.23implements, or materials that are made or constructed of paper, wood, or other porous
47.24materials must only be used for one application or client service. Presence of used articles
47.25in the work area is prima facie evidence of reuse. Failure to dispose of the materials in this
47.26subdivision is punishable by penalty under section 155A.25, subdivision 1a, paragraph
47.27(b), clause (7).
47.28    Subd. 2. Skin-cutting equipment. Razor-type callus shavers, rasps, or graters
47.29designed and intended to cut growths of skin such as corns and calluses, including but not
47.30limited to credo blades, are prohibited. Presence of these articles in the work area is prima
47.31facie evidence of use and is punishable by penalty in section 155A.25, subdivision 1a,
47.32paragraph (b), clause (8).
48.1    Subd. 3. Substances. Licensees must not use any of the following substances or
48.2products in performing cosmetology services:
48.3(1) methyl methacrylate liquid monomers, also known as MMA; and
48.4(2) fumigants, including but not limited to formalin tablets or formalin liquids.

48.5    Sec. 31. Minnesota Statutes 2012, section 326A.04, subdivision 2, is amended to read:
48.6    Subd. 2. Timing. (a) Certificates must be initially issued and renewed for periods of
48.7not more than three years annually but in any event must expire on December 31 in the year
48.8prescribed by the board by rule. Applications for certificates must be made in the form, and
48.9in the case of applications for renewal between the dates, specified by the board in rule.
48.10The board shall grant or deny an application no later than 90 days after the application is
48.11filed in proper form. If the applicant seeks the opportunity to show that issuance or renewal
48.12of a certificate was mistakenly denied, or if the board is unable to determine whether it
48.13should be granted or denied, the board may issue to the applicant a provisional certificate
48.14that expires 90 days after its issuance, or when the board determines whether or not to
48.15issue or renew the certificate for which application was made, whichever occurs first.
48.16(b) Certificate holders who do not provide professional services and do not use the
48.17certified public accountant designation in any manner are not required to renew their
48.18certificates provided they have notified the board as provided in board rule and comply
48.19with the requirements for nonrenewal as specified in board rule.
48.20(c) Applications for renewal of a certificate that are complete and timely filed with
48.21the board and are not granted or denied by the board before January 1 are renewed on a
48.22provisional basis as of January 1 and for 90 days thereafter, or until the board grants or
48.23denies the renewal of the certificate, whichever occurs first, provided the licensee meets
48.24the requirements in this chapter and rules adopted by the board.
48.25EFFECTIVE DATE.This section is effective for licenses issued or renewed after
48.26January 1, 2014.

48.27    Sec. 32. Minnesota Statutes 2012, section 326A.04, subdivision 3, is amended to read:
48.28    Subd. 3. Residents of other states. (a) With regard to an applicant who must
48.29obtain a certificate in this state because the applicant does not qualify under the substantial
48.30equivalency standard in section 326A.14, subdivision 1, the board shall issue a certificate
48.31to a holder of a certificate, license, or permit issued by another state upon a showing that:
48.32(1) the applicant passed the examination required for issuance of a certificate in
48.33this state;
49.1(2) the applicant had four years of experience of the type described in section
49.2326A.03, subdivision 6 , paragraph (b), if application is made on or after July 1, 2006,
49.3or section 326A.03, subdivision 8, if application is made before July 1, 2006; or the
49.4applicant meets equivalent requirements prescribed by the board by rule, after passing
49.5the examination upon which the applicant's certificate was based and within the ten years
49.6immediately preceding the application;
49.7(3) if the applicant's certificate, license, or permit was issued more than four years
49.8prior to the application for issuance of an initial certificate under this subdivision, that the
49.9applicant has fulfilled the requirements of continuing professional education that would
49.10have been applicable under subdivision 4; and
49.11(4) the applicant has met the qualifications prescribed by the board by rule.
49.12(b) A certificate holder licensed by another state who establishes a principal place
49.13of business in this state shall request the issuance of a certificate from the board prior to
49.14establishing the principal place of business. The board shall issue a certificate to the person
49.15if the person's individual certified public accountant qualifications, upon verification, are
49.16substantially equivalent to the certified public accountant licensure requirements of this
49.17chapter or the person meets equivalent requirements as the board prescribes by rule.
49.18Residents of this state who provide professional services in this state at an office location
49.19in this state shall be considered to have their principal place of business in this state.

49.20    Sec. 33. Minnesota Statutes 2012, section 326A.04, subdivision 5, is amended to read:
49.21    Subd. 5. Fee. (a) The board shall charge a fee for each application for initial
49.22issuance or renewal of a certificate under this section.
49.23(b) The board shall annually establish a fee schedule not to exceed the following
49.24amounts:
49.25(1) initial issuance of certificate, $150;
49.26(2) renewal of certificate with an active status, $100 per year;
49.27(3) initial CPA firm permits, except for sole practitioners, $100;
49.28(4) renewal of CPA firm permits, except for sole practitioners and those firms
49.29specified in clause (17), $35 per year;
49.30(5) initial issuance and renewal of CPA firm permits for sole practitioners, except for
49.31those firms specified in clause (17), $35 per year;
49.32(6) annual late processing delinquency fee for permit, certificate, or registration
49.33renewal applications not received prior to expiration date, $50;
49.34(7) copies of records, per page, 25 cents;
50.1(8) registration of noncertificate holders, nonlicensees, and nonregistrants in
50.2connection with renewal of firm permits, $45 per year;
50.3(9) applications for reinstatement, $20;
50.4(10) initial registration of a registered accounting practitioner, $50;
50.5(11) initial registered accounting practitioner firm permits, $100;
50.6(12) renewal of registered accounting practitioner firm permits, except for sole
50.7practitioners, $100 per year;
50.8(13) renewal of registered accounting practitioner firm permits for sole practitioners,
50.9$35 per year;
50.10(14) CPA examination application, $40;
50.11(15) CPA examination, fee determined by third-party examination administrator;
50.12(16) renewal of certificates with an inactive status, $25 per year; and
50.13(17) renewal of CPA firm permits for firms that have one or more offices located in
50.14another state, $68 per year.

50.15    Sec. 34. Minnesota Statutes 2012, section 326A.04, subdivision 7, is amended to read:
50.16    Subd. 7. Certificates issued by foreign countries. The board shall issue a
50.17certificate to a holder of a generally equivalent foreign country designation, provided that:
50.18(1) the foreign authority that granted the designation makes similar provision to
50.19allow a person who holds a valid certificate issued by this state to obtain the foreign
50.20authority's comparable designation;
50.21(2) the foreign designation:
50.22(i) was duly issued by a foreign authority that regulates the practice of public
50.23accountancy and the foreign designation has not expired or been revoked or suspended;
50.24(ii) entitles the holder to issue reports upon financial statements; and
50.25(iii) was issued upon the basis of educational, examination, and experience
50.26requirements established by the foreign authority or by law; and
50.27(3) the applicant:
50.28(i) received the designation, based on educational and examination standards
50.29generally equivalent to those in effect in this state, at the time the foreign designation
50.30was granted;
50.31(ii) has, within the ten years immediately preceding the application, completed an
50.32experience requirement that is generally equivalent to the requirement in section 326A.03,
50.33subdivision 6
, paragraph (b), if application is made on or after July 1, 2006, or section
50.34326A.03, subdivision 8, if application is made before July 1, 2006, in the jurisdiction that
51.1granted the foreign designation; completed four years of professional experience in this
51.2state; or met equivalent requirements prescribed by the board by rule; and
51.3(iii) passed a uniform qualifying examination in national standards and an
51.4examination on the laws, regulations, and code of ethical conduct in effect in this state
51.5as the board prescribes by rule.

51.6    Sec. 35. Minnesota Statutes 2012, section 326A.10, is amended to read:
51.7326A.10 UNLAWFUL ACTS.
51.8(a) Only a licensee and individuals who have been granted practice privileges
51.9under section 326A.14 may issue a report on financial statements of any person, firm,
51.10organization, or governmental unit that results from providing attest services, or offer to
51.11render or render any attest service. Only a certified public accountant, an individual who
51.12has been granted practice privileges under section 326A.14, a CPA firm, or, to the extent
51.13permitted by board rule, a person registered under section 326A.06, paragraph (b), may
51.14issue a report on financial statements of any person, firm, organization, or governmental
51.15unit that results from providing compilation services or offer to render or render any
51.16compilation service. These restrictions do not prohibit any act of a public official or
51.17public employee in the performance of that person's duties or prohibit the performance
51.18by any nonlicensee of other services involving the use of accounting skills, including
51.19the preparation of tax returns, management advisory services, and the preparation of
51.20financial statements without the issuance of reports on them. Nonlicensees may prepare
51.21financial statements and issue nonattest transmittals or information on them which do not
51.22purport to be in compliance with the Statements on Standards for Accounting and Review
51.23Services (SSARS). Nonlicensees registered under section 326A.06, paragraph (b), may,
51.24to the extent permitted by board rule, prepare financial statements and issue nonattest
51.25transmittals or information on them.
51.26(b) Licensees and individuals who have been granted practice privileges under
51.27section 326A.14 performing attest or compilation services must provide those services in
51.28accordance with professional standards. To the extent permitted by board rule, registered
51.29accounting practitioners performing compilation services must provide those services in
51.30accordance with standards specified in board rule.
51.31(c) A person who does not hold a valid certificate issued under section 326A.04
51.32or a practice privilege granted under section 326A.14 shall not use or assume the title
51.33"certified public accountant," the abbreviation "CPA," or any other title, designation,
51.34words, letters, abbreviation, sign, card, or device tending to indicate that the person is a
51.35certified public accountant.
52.1(d) A firm shall not provide attest services or assume or use the title "certified public
52.2accountants," the abbreviation "CPA's," or any other title, designation, words, letters,
52.3abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless
52.4(1) the firm has complied with section 326A.05, and (2) ownership of the firm is in
52.5accordance with this chapter and rules adopted by the board.
52.6(e) A person or firm that does not hold a valid certificate or permit issued under
52.7section 326A.04 or 326A.05 or has not otherwise complied with section 326A.04 or
52.8326A.05 as required in this chapter shall not assume or use the title "certified accountant,"
52.9"chartered accountant," "enrolled accountant," "licensed accountant," "registered
52.10accountant," "accredited accountant," "accounting practitioner," "public accountant,"
52.11"licensed public accountant," or any other title or designation likely to be confused
52.12with the title "certified public accountant," or use any of the abbreviations "CA," "LA,"
52.13"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the
52.14abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals
52.15so designated by the Internal Revenue Service.
52.16(f) Persons registered under section 326A.06, paragraph (b), may use the title
52.17"registered accounting practitioner" or the abbreviation "RAP." A person who does not
52.18hold a valid registration under section 326A.06, paragraph (b), shall not assume or use
52.19such title or abbreviation.
52.20(g) Except to the extent permitted in paragraph (a), nonlicensees may not use
52.21language in any statement relating to the financial affairs of a person or entity that is
52.22conventionally used by licensees in reports on financial statements. In this regard, the
52.23board shall issue by rule safe harbor language that nonlicensees may use in connection
52.24with such financial information. A person or firm that does not hold a valid certificate or
52.25permit, or a registration issued under section 326A.04, 326A.05, or 326A.06, paragraph
52.26(b)
, or has not otherwise complied with section 326A.04 or 326A.05 as required in this
52.27chapter shall not assume or use any title or designation that includes the word "accountant"
52.28or "accounting" in connection with any other language, including the language of a report,
52.29that implies that the person or firm holds such a certificate, permit, or registration or has
52.30special competence as an accountant. A person or firm that does not hold a valid certificate
52.31or permit issued under section 326A.04 or 326A.05 or has not otherwise complied with
52.32section 326A.04 or 326A.05 as required in this chapter shall not assume or use any title
52.33or designation that includes the word "auditor" in connection with any other language,
52.34including the language of a report, that implies that the person or firm holds such a
52.35certificate or permit or has special competence as an auditor. However, this paragraph
52.36does not prohibit any officer, partner, member, manager, or employee of any firm or
53.1organization from affixing that person's own signature to any statement in reference to the
53.2financial affairs of such firm or organization with any wording designating the position,
53.3title, or office that the person holds, nor prohibit any act of a public official or employee in
53.4the performance of the person's duties as such.
53.5(h)(1) No person holding a certificate or registration or firm holding a permit under
53.6this chapter shall use a professional or firm name or designation that is misleading about
53.7the legal form of the firm, or about the persons who are partners, officers, members,
53.8managers, or shareholders of the firm, or about any other matter. However, names of one
53.9or more former partners, members, managers, or shareholders may be included in the
53.10name of a firm or its successor.
53.11(2) A common brand name or network name part, including common initials,
53.12used by a CPA firm in its name, is not misleading if the firm is a network firm as
53.13defined in the American Institute of Certified Public Accountants (AICPA) Code of
53.14Professional Conduct in effect July 1, 2011, and when offering or rendering services that
53.15require independence under AICPA standards, the firm complies with the AICPA code's
53.16applicable standards on independence.
53.17(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification,
53.18designation, degree, or license granted in a foreign country entitling the holder to engage
53.19in the practice of public accountancy or its equivalent in that country, if:
53.20(1) the activities of the person or firm in this state are limited to the provision of
53.21professional services to persons or firms who are residents of, governments of, or business
53.22entities of the country in which the person holds the entitlement;
53.23(2) the person or firm performs no attest or compilation services and issues no reports
53.24with respect to the financial statements of any other persons, firms, or governmental
53.25units in this state; and
53.26(3) the person or firm does not use in this state any title or designation other than
53.27the one under which the person practices in the foreign country, followed by a translation
53.28of the title or designation into English, if it is in a different language, and by the name
53.29of the country.
53.30(j) No holder of a certificate issued under section 326A.04 may perform attest services
53.31through any business form that does not hold a valid permit issued under section 326A.05.
53.32(k) No individual licensee may issue a report in standard form upon a compilation
53.33of financial information through any form of business that does not hold a valid permit
53.34issued under section 326A.05, unless the report discloses the name of the business through
53.35which the individual is issuing the report, and the individual:
54.1(1) signs the compilation report identifying the individual as a certified public
54.2accountant;
54.3(2) meets the competency requirement provided in applicable standards; and
54.4(3) undergoes no less frequently than once every three years, a peer review
54.5conducted in a manner specified by the board in rule, and the review includes verification
54.6that the individual has met the competency requirements set out in professional standards
54.7for such services.
54.8(l) No person registered under section 326A.06, paragraph (b), may issue a report
54.9in standard form upon a compilation of financial information unless the board by rule
54.10permits the report and the person:
54.11(1) signs the compilation report identifying the individual as a registered accounting
54.12practitioner;
54.13(2) meets the competency requirements in board rule; and
54.14(3) undergoes no less frequently than once every three years a peer review conducted
54.15in a manner specified by the board in rule, and the review includes verification that the
54.16individual has met the competency requirements in board rule.
54.17(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from
54.18preparing or presenting records or documents customarily prepared by an attorney or firm
54.19of attorneys in connection with the attorney's professional work in the practice of law.
54.20(n) The board shall adopt rules that place limitations on receipt by a licensee or a
54.21person who holds a registration under section 326A.06, paragraph (b), of:
54.22(1) contingent fees for professional services performed; and
54.23(2) commissions or referral fees for recommending or referring to a client any
54.24product or service.
54.25(o) Anything in this section to the contrary notwithstanding, it shall not be a violation
54.26of this section for a firm not holding a valid permit under section 326A.05 and not having
54.27an office in this state to provide its professional services in this state so long as it complies
54.28with the applicable requirements of section 326A.05, subdivision 1.

54.29    Sec. 36. GOOD CAUSE EXEMPTION.
54.30The Board of Cosmetology may amend Minnesota Rules so that they conform with
54.31this act. The Board of Cosmetology may use the good cause exemption under Minnesota
54.32Statutes, section 14.388, subdivision 1, clause (3), in adopting the amendment, and
54.33Minnesota Statutes, section 14.386, does not apply, except as it relates to Minnesota
54.34Statutes, section 14.388.

55.1    Sec. 37. REVISOR'S INSTRUCTION.
55.2The revisor of statutes shall change the term "manicurist" to "nail technician"
55.3wherever it appears in Minnesota Rules and Minnesota Statutes.

55.4    Sec. 38. REPEALER.
55.5(a) Minnesota Statutes 2012, sections 155A.25, subdivision 1; and 326A.03,
55.6subdivisions 2, 5, and 8, are repealed.
55.7(b) Minnesota Rules, parts 1105.0600; 1105.2550; and 1105.2700, are repealed.

55.8ARTICLE 5
55.9MILITARY AND VETERANS PROVISIONS

55.10    Section 1. Minnesota Statutes 2012, section 192.26, is amended to read:
55.11192.26 STATE AND MUNICIPAL OFFICERS AND EMPLOYEES NOT TO
55.12LOSE PAY WHILE ON AUTHORIZED LEAVE FOR MILITARY DUTY.
55.13    Subdivision 1. Authorized leave. Subject to the conditions hereinafter prescribed,
55.14any officer or employee of the state or of any political subdivision, municipal corporation,
55.15or other public agency of the state who shall be a member of the National Guard, or any
55.16other component of the militia of the state now or hereafter organized or constituted
55.17under state or federal law, or who shall be a member of the officers' reserve corps, the
55.18enlisted reserve corps, the Naval Reserve, the Marine Corps reserve, or any other reserve
55.19component of the military or naval forces of the United States now or hereafter organized
55.20or constituted under federal law, shall be entitled to leave of absence from the public
55.21office or employment without loss of pay, seniority status, efficiency rating, vacation,
55.22sick leave, or other benefits for all the time when engaged with such organization or
55.23component in training or active service ordered or authorized by proper authority pursuant
55.24to law, whether for state or federal purposes, but not exceeding a total of 15 days in any
55.25calendar year. The state or political subdivision, municipal corporation, or other public
55.26agency shall allow the officer or employee to choose when during the calendar year to
55.27take the 15 days of paid military leave. The officer or employee may choose to use all of
55.28the 15 days of paid military leave at one time or, in the alternative, the 15 days of paid
55.29military leave may be divided and taken throughout the calendar year at the discretion of
55.30the officer or employee. Such leave shall be allowed only in case the required military or
55.31naval service is satisfactorily performed, which shall be presumed unless the contrary is
55.32established. Such leave shall not be allowed unless the officer or employee (1) returns to
55.33the public position immediately on being relieved from such military or naval service and
56.1not later than the expiration of the time herein limited for such leave, or (2) is prevented
56.2from so returning by physical or mental disability or other cause not due to the officer's or
56.3employee's own fault, or (3) is required by proper authority to continue in such military or
56.4naval service beyond the time herein limited for such leave.

56.5    Sec. 2. Minnesota Statutes 2012, section 197.608, subdivision 1, is amended to read:
56.6    Subdivision 1. Grant program. A veterans service office grant program is
56.7established to be administered by the commissioner of veterans affairs consisting of grants
56.8to counties to enable them to enhance the effectiveness of their veterans service offices.
56.9 "Commissioner" as used in this section means the commissioner of veterans affairs.

56.10    Sec. 3. Minnesota Statutes 2012, section 197.608, subdivision 3, is amended to read:
56.11    Subd. 3. Eligibility. (a) To be eligible for a grant under this program subdivision 6,
56.12a county must employ a county veterans service officer as authorized by sections 197.60
56.13and 197.606, who is certified to serve in this position by the commissioner.
56.14(b) A county that employs a newly hired county veterans service officer who is
56.15serving an initial probationary period and who has not been certified by the commissioner
56.16is eligible to receive a grant under subdivision 2a 6 for one year from the date the county
56.17veterans service officer is appointed.
56.18(c) Except for the situation described in paragraph (b), A county whose county
56.19veterans service officer does not receive certification during any year of the three-year
56.20cycle is not eligible to receive a grant during the remainder of that cycle or the next
56.21three-year cycle by the end of the first year of the county veterans service officer's
56.22appointment is ineligible for the grant under subdivision 6 until the county veterans
56.23service officer receives certification.

56.24    Sec. 4. Minnesota Statutes 2012, section 197.608, subdivision 4, is amended to read:
56.25    Subd. 4. Grant process. (a) The commissioner shall determine the process for
56.26awarding grants. A grant may be used only for the purpose of enhancing the operations of
56.27the County Veterans Service Office.
56.28(b) The commissioner shall provide a list of qualifying uses for grant expenditures
56.29as developed in subdivision 5 and shall approve a grant under subdivision 6 only for a
56.30qualifying use and if there are sufficient funds remaining in the grant program to cover the
56.31full amount of the grant.
56.32(c) The commissioner is authorized to use any unexpended funding for this program
56.33to provide training and education for county veterans service officers.

57.1    Sec. 5. Minnesota Statutes 2012, section 197.608, subdivision 5, is amended to read:
57.2    Subd. 5. Qualifying uses. The commissioner shall consult with the Minnesota
57.3Association of County Veterans Service Officers in developing a list of qualifying uses for
57.4grants awarded under this program subdivision 6.
57.5The commissioner is authorized to use any unexpended funding for this program to
57.6provide training and education for county veterans service officers.

57.7    Sec. 6. Minnesota Statutes 2012, section 197.608, subdivision 6, is amended to read:
57.8    Subd. 6. Grant amount. (a) Each county is eligible to receive an annual grant of
57.9$5,000 for the following purposes:
57.10(1) to provide outreach to the county's veterans;
57.11(2) to assist in the reintegration of combat veterans into society;
57.12(3) to collaborate with other social service agencies, educational institutions, and
57.13other community organizations for the purposes of enhancing services offered to veterans;
57.14(4) to reduce homelessness among veterans; and
57.15(5) to enhance the operations of the county veterans service office.
57.16(b) In addition to the grant amount in paragraph (a), each county is eligible to receive
57.17an additional annual grant under this paragraph. The amount of each additional annual
57.18grant must be determined by the commissioner and may not exceed:
57.19(1) $1,400 $0, if the county's veteran population is less than 1,000;
57.20(2) $2,800 $1,000, if the county's veteran population is 1,000 or more but less than
57.213,000;
57.22(3) $4,200 $2,000, if the county's veteran population is 3,000 or more but less then
57.2310,000 than 4,999; or
57.24(4) $5,600 $5,000, if the county's veteran population is 10,000 5,000 or more. but
57.25less than 9,999;
57.26(5) $7,500, if the county's veteran population is 10,000 or more but less than 19,999;
57.27(6) $10,000, if the county's veteran population is 20,000 or more but less than
57.2829,999; or
57.29(7) $15,000, if the county's veteran population is 30,000 or more.
57.30(c) The Minnesota Association of County Veterans Service Officers is eligible to
57.31receive an annual grant of $2,500. The grant shall be used for administrative costs of
57.32the association, certification of mandated county veterans service officer training and
57.33accreditation, and costs associated with reintegration services.
57.34The veteran population of each county shall be determined by the figure supplied by
57.35the United States Department of Veterans Affairs, as adopted by the commissioner.

58.1    Sec. 7. Minnesota Statutes 2012, section 197.791, subdivision 4, is amended to read:
58.2    Subd. 4. Eligibility. (a) A person is eligible for educational assistance under this
58.3section if:
58.4    (1) the person is:
58.5    (i) a veteran who is serving or has served honorably in any branch or unit of the
58.6United States armed forces at any time on or after September 11, 2001;
58.7    (ii) a nonveteran who has served honorably for a total of five years or more
58.8cumulatively as a member of the Minnesota National Guard or any other active or reserve
58.9component of the United States armed forces, and any part of that service occurred on or
58.10after September 11, 2001;
58.11    (iii) the surviving spouse or child of a person who has served in the military at any
58.12time on or after September 11, 2001, and who has died as a direct result of that military
58.13service, only if the surviving spouse or child is eligible to receive federal education
58.14benefits under United States Code, title 38, chapter 33, as amended, or United States
58.15Code, title 38, chapter 35, as amended; or
58.16    (iv) the spouse or child of a person who has served in the military at any time on or
58.17after September 11, 2001, and who has a total and permanent service-connected disability
58.18as rated by the United States Veterans Administration, only if the spouse or child is
58.19eligible to receive federal education benefits under United States Code, title 38, chapter
58.2033, as amended, or United States Code, title 38, chapter 35, as amended; and
58.21    (2) the person receiving the educational assistance is a Minnesota resident, as
58.22defined in section 136A.101, subdivision 8; and
58.23    (3) the person receiving the educational assistance:
58.24    (i) is an undergraduate or graduate student at an eligible institution;
58.25    (ii) is maintaining satisfactory academic progress as defined by the institution for
58.26students participating in federal Title IV programs;
58.27    (iii) is enrolled in an education program leading to a certificate, diploma, or degree
58.28at an eligible institution;
58.29    (iv) has applied for educational assistance under this section prior to the end of the
58.30academic term for which the assistance is being requested;
58.31    (v) is in compliance with child support payment requirements under section
58.32136A.121, subdivision 2 , clause (5); and
58.33    (vi) has completed the Free Application for Federal Student Aid (FAFSA).
58.34    (b) A person's eligibility terminates when the person becomes eligible for benefits
58.35under section 135A.52.
59.1    (c) To determine eligibility, the commissioner may require official documentation,
59.2including the person's federal form DD-214 or other official military discharge papers;
59.3correspondence from the United States Veterans Administration; birth certificate; marriage
59.4certificate; proof of enrollment at an eligible institution; signed affidavits; proof of
59.5residency; proof of identity; or any other official documentation the commissioner
59.6considers necessary to determine eligibility.
59.7    (d) The commissioner may deny eligibility or terminate benefits under this section
59.8to any person who has not provided sufficient documentation to determine eligibility for
59.9the program. An applicant may appeal the commissioner's eligibility determination or
59.10termination of benefits in writing to the commissioner at any time. The commissioner
59.11must rule on any application or appeal within 30 days of receipt of all documentation that
59.12the commissioner requires. The decision of the commissioner regarding an appeal is final.
59.13However, an applicant whose appeal of an eligibility determination has been rejected by
59.14the commissioner may submit an additional appeal of that determination in writing to the
59.15commissioner at any time that the applicant is able to provide substantively significant
59.16additional information regarding the applicant's eligibility for the program. An approval
59.17of an applicant's eligibility by the commissioner following an appeal by the applicant is
59.18not retroactively effective for more than one year or the semester of the person's original
59.19application, whichever is later.
59.20    (e) Upon receiving an application with insufficient documentation to determine
59.21eligibility, the commissioner must notify the applicant within 30 days of receipt of the
59.22application that the application is being suspended pending receipt by the commissioner of
59.23sufficient documentation from the applicant to determine eligibility.

59.24    Sec. 8. Minnesota Statutes 2012, section 197.791, subdivision 5, is amended to read:
59.25    Subd. 5. Benefit amount. (a) On approval by the commissioner of eligibility for
59.26the program, the applicant shall be awarded, on a funds-available basis, the educational
59.27assistance under the program for use at any time according to program rules at any
59.28eligible institution.
59.29    (b) The amount of educational assistance in any semester or term for an eligible
59.30person must be determined by subtracting from the eligible person's cost of attendance the
59.31amount the person received or was eligible to receive in that semester or term from:
59.32    (1) the federal Pell Grant;
59.33    (2) the state grant program under section 136A.121; and
59.34    (3) any federal military or veterans educational benefits including but not limited
59.35to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program,
60.1vocational rehabilitation benefits, and any other federal benefits associated with the
60.2person's status as a veteran, except veterans disability payments from the United States
60.3Veterans Administration and payments made under the Veterans Retraining Assistance
60.4Program (VRAP).
60.5    (c) The amount of educational assistance for any eligible person who is a full-time
60.6student must not exceed the following:
60.7    (1) $1,000 per semester or term of enrollment;
60.8    (2) $3,000 per state fiscal year; and
60.9    (3) $10,000 in a lifetime.
60.10    For a part-time student, the amount of educational assistance must not exceed
60.11$500 per semester or term of enrollment. For the purpose of this paragraph, a part-time
60.12undergraduate student is a student taking fewer than 12 credits or the equivalent for a
60.13semester or term of enrollment and a part-time graduate student is a student considered
60.14part time by the eligible institution the graduate student is attending. The minimum award
60.15for undergraduate and graduate students is $50 per term.

60.16    Sec. 9. [198.365] VETERANS HOME; BELTRAMI COUNTY.
60.17    Subdivision 1. Establishment. The commissioner shall establish a veterans home in
60.18Beltrami County to provide at least 70 beds for skilled nursing care in conformance with
60.19licensing rules of the Department of Health.
60.20    Subd. 2. Funding. The home must be purchased or built with funds, 65 percent
60.21of which must be provided by the federal government, and 35 percent by state or other
60.22funding sources, including local units of government, veterans' organizations, and
60.23corporations or other business entities.
60.24    Subd. 3. Support services. Upon request, the Department of Human Services shall
60.25arrange for the extension of support services to the veterans home in Beltrami County
60.26including, but not limited to, the provision of utilities, and kitchen and laundry services.

60.27    Sec. 10. REPEALER.
60.28Minnesota Statutes 2012, section 197.608, subdivision 2a, is repealed.

60.29ARTICLE 6
60.30REVENUE DEPARTMENT

60.31    Section 1. Minnesota Statutes 2012, section 16A.82, is amended to read:
60.3216A.82 TECHNOLOGY LEASE-PURCHASE APPROPRIATION.
61.1The following amounts are appropriated from the general fund to the commissioner
61.2to make payments under a lease-purchase agreement as defined in section 16A.81 for
61.3replacement of the state's accounting and procurement systems, provided that the state
61.4is not obligated to continue such appropriation of funds or to make lease payments
61.5in any future fiscal year.
61.6
Fiscal year 2010
$2,828,038
61.7
Fiscal year 2011
$3,063,950
61.8
Fiscal year 2012
$8,967,850
61.9
Fiscal year 2013
$8,968,950
61.10
Fiscal year 2014
$8,970,850
61.11
Fiscal year 2015
$8,971,150
61.12
Fiscal year 2016
$8,966,450
61.13
Fiscal year 2017
$8,967,500
61.14
Fiscal year 2018
$8,970,750
61.15
Fiscal year 2019
$8,968,500
61.16Of these appropriations, up to $2,000 per year may be used to pay the annual trustee
61.17fees for the lease-purchase agreements authorized in this section and section 270C.145.
61.18Any unexpended portions of this appropriation cancel to the general fund at the close of
61.19each biennium. This section expires June 30, 2019.

61.20    Sec. 2. Minnesota Statutes 2012, section 65B.84, subdivision 1, is amended to read:
61.21    Subdivision 1. Program described; commissioner's duties; appropriation. (a)
61.22The commissioner of commerce shall:
61.23(1) develop and sponsor the implementation of statewide plans, programs, and
61.24strategies to combat automobile theft, improve the administration of the automobile theft
61.25laws, and provide a forum for identification of critical problems for those persons dealing
61.26with automobile theft;
61.27(2) coordinate the development, adoption, and implementation of plans, programs,
61.28and strategies relating to interagency and intergovernmental cooperation with respect
61.29to automobile theft enforcement;
61.30(3) annually audit the plans and programs that have been funded in whole or in part
61.31to evaluate the effectiveness of the plans and programs and withdraw funding should the
61.32commissioner determine that a plan or program is ineffective or is no longer in need
61.33of further financial support from the fund;
61.34(4) develop a plan of operation including:
61.35(i) an assessment of the scope of the problem of automobile theft, including areas
61.36of the state where the problem is greatest;
62.1(ii) an analysis of various methods of combating the problem of automobile theft;
62.2(iii) a plan for providing financial support to combat automobile theft;
62.3(iv) a plan for eliminating car hijacking; and
62.4(v) an estimate of the funds required to implement the plan; and
62.5(5) distribute money, in consultation with the commissioner of public safety,
62.6pursuant to subdivision 3 from the automobile theft prevention special revenue account
62.7for automobile theft prevention activities, including:
62.8(i) paying the administrative costs of the program;
62.9(ii) providing financial support to the State Patrol and local law enforcement
62.10agencies for automobile theft enforcement teams;
62.11(iii) providing financial support to state or local law enforcement agencies for
62.12programs designed to reduce the incidence of automobile theft and for improved
62.13equipment and techniques for responding to automobile thefts;
62.14(iv) providing financial support to local prosecutors for programs designed to reduce
62.15the incidence of automobile theft;
62.16(v) providing financial support to judicial agencies for programs designed to reduce
62.17the incidence of automobile theft;
62.18(vi) providing financial support for neighborhood or community organizations or
62.19business organizations for programs designed to reduce the incidence of automobile
62.20theft and to educate people about the common methods of automobile theft, the models
62.21of automobiles most likely to be stolen, and the times and places automobile theft is
62.22most likely to occur; and
62.23(vii) providing financial support for automobile theft educational and training
62.24programs for state and local law enforcement officials, driver and vehicle services exam
62.25and inspections staff, and members of the judiciary.
62.26(b) The commissioner may not spend in any fiscal year more than ten percent of the
62.27money in the fund for the program's administrative and operating costs. The commissioner
62.28is annually appropriated and must distribute the amount of the proceeds credited to
62.29the automobile theft prevention special revenue account each year, less the transfer
62.30of $1,300,000 each year to the general fund described in section 168A.40, subdivision
62.314
297I.11, subdivision 2.
62.32EFFECTIVE DATE.This section is effective for premiums collected after June
62.3330, 2013.

62.34    Sec. 3. Minnesota Statutes 2012, section 270C.69, subdivision 1, is amended to read:
63.1    Subdivision 1. Notice and procedures. (a) The commissioner may, within five years
63.2after the date of assessment of the tax, or if a lien has been filed under section 270C.63,
63.3within the statutory period for enforcement of the lien, give notice to any employer
63.4deriving income which has a taxable situs in this state regardless of whether the income is
63.5exempt from taxation, that an employee of that employer is delinquent in a certain amount
63.6with respect to any taxes, including penalties, interest, and costs. The commissioner can
63.7proceed under this section only if the tax is uncontested or if the time for appeal of the tax
63.8has expired. The commissioner shall not proceed under this section until the expiration of
63.930 days after mailing to the taxpayer, at the taxpayer's last known address, a written notice
63.10of (1) the amount of taxes, interest, and penalties due from the taxpayer and demand for
63.11their payment, and (2) the commissioner's intention to require additional withholding by
63.12the taxpayer's employer pursuant to this section. The effect of the notice shall expire one
63.13year after it has been mailed to the taxpayer provided that the notice may be renewed by
63.14mailing a new notice which is in accordance with this section. The renewed notice shall
63.15have the effect of reinstating the priority of the original claim. The notice to the taxpayer
63.16shall be in substantially the same form as that provided in section 571.72. The notice
63.17shall further inform the taxpayer of the wage exemptions contained in section 550.37,
63.18subdivision 14
. If no statement of exemption is received by the commissioner within 30
63.19days from the mailing of the notice, the commissioner may proceed under this section.
63.20The notice to the taxpayer's employer may be served by mail or by delivery by an agent of
63.21the department and shall be in substantially the same form as provided in section 571.75.
63.22Upon receipt of notice, the employer shall withhold from compensation due or to become
63.23due to the employee, the total amount shown by the notice, subject to the provisions of
63.24section 571.922. The employer shall continue to withhold each pay period until the notice
63.25is released by the commissioner under section 270C.7109. Upon receipt of notice by the
63.26employer, the claim of the state of Minnesota shall have priority over any subsequent
63.27garnishments or wage assignments. The commissioner may arrange between the employer
63.28and the employee for withholding a portion of the total amount due the employee each pay
63.29period, until the total amount shown by the notice plus accrued interest has been withheld.
63.30(b) The "compensation due" any employee is defined in accordance with the
63.31provisions of section 571.921. The maximum withholding allowed under this section for
63.32any one pay period shall be decreased by any amounts payable pursuant to a garnishment
63.33action with respect to which the employer was served prior to being served with the notice
63.34of delinquency and any amounts covered by any irrevocable and previously effective
63.35assignment of wages; the employer shall give notice to the commissioner of the amounts
64.1and the facts relating to such assignments within ten days after the service of the notice of
64.2delinquency on the form provided by the commissioner as noted in this section.
64.3(c) Within ten days after the expiration of such pay period, the employer shall remit
64.4to the commissioner, on a form and in the manner prescribed by the commissioner, the
64.5amount withheld during each pay period under this section. The employer must file all
64.6wage levy disclosure forms and remit all wage levy payments by electronic means.
64.7EFFECTIVE DATE.This section is effective for wage levy disclosures or wage
64.8levy payments filed or made after December 31, 2013.

64.9    Sec. 4. Minnesota Statutes 2012, section 289A.20, subdivision 2, is amended to read:
64.10    Subd. 2. Withholding from wages, entertainer withholding, withholding
64.11from payments to out-of-state contractors, and withholding by partnerships, small
64.12business corporations, trusts. (a) A tax required to be deducted and withheld during the
64.13quarterly period must be paid on or before the last day of the month following the close of
64.14the quarterly period, unless an earlier time for payment is provided. A tax required to be
64.15deducted and withheld from compensation of an entertainer and from a payment to an
64.16out-of-state contractor must be paid on or before the date the return for such tax must be
64.17filed under section 289A.18, subdivision 2. Taxes required to be deducted and withheld
64.18by partnerships, S corporations, and trusts must be paid on a quarterly basis as estimated
64.19taxes under section 289A.25 for partnerships and trusts and under section 289A.26 for S
64.20corporations.
64.21(b) An employer who, during the previous quarter, withheld more than $1,500 of
64.22tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax
64.23withheld under those sections with the commissioner within the time allowed to deposit
64.24the employer's federal withheld employment taxes under Code of Federal Regulations,
64.25title 26, section 31.6302-1, as amended through December 31, 2001, without regard to the
64.26safe harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3).
64.27Taxpayers must submit a copy of their federal notice of deposit status to the commissioner
64.28upon request by the commissioner.
64.29(c) The commissioner may prescribe by rule other return periods or deposit
64.30requirements. In prescribing the reporting period, the commissioner may classify payors
64.31according to the amount of their tax liability and may adopt an appropriate reporting
64.32period for the class that the commissioner judges to be consistent with efficient tax
64.33collection. In no event will the duration of the reporting period be more than one year.
64.34(d) If less than the correct amount of tax is paid to the commissioner, proper
64.35adjustments with respect to both the tax and the amount to be deducted must be made,
65.1without interest, in the manner and at the times the commissioner prescribes. If the
65.2underpayment cannot be adjusted, the amount of the underpayment will be assessed and
65.3collected in the manner and at the times the commissioner prescribes.
65.4(e) If the aggregate amount of the tax withheld is:
65.5(1) $20,000 or more in the fiscal year ending June 30, 2005; or
65.6(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years
65.7thereafter,
65.8the employer must remit each required deposit for wages paid in the all subsequent
65.9calendar year years by electronic means.
65.10(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph
65.11(a), clause (2), who remits withholding deposits must remit all deposits by electronic
65.12means as provided in paragraph (e), regardless of the aggregate amount of tax withheld
65.13during a fiscal year for all of the employers.
65.14EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
65.152013, and all fiscal years thereafter.

65.16    Sec. 5. Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read:
65.17    Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and
65.18payable to the commissioner monthly on or before the 20th day of the month following
65.19the month in which the taxable event occurred, or following another reporting period
65.20as the commissioner prescribes or as allowed under section 289A.18, subdivision 4,
65.21paragraph (f) or (g), except that:
65.22(1) use taxes due on an annual use tax return as provided under section 289A.11,
65.23subdivision 1
, are payable by April 15 following the close of the calendar year; and
65.24(2) except as provided in paragraph (f), for a vendor having a liability of $120,000
65.25or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
65.26imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
65.27commissioner monthly in the following manner:
65.28(i) On or before the 14th day of the month following the month in which the taxable
65.29event occurred, the vendor must remit to the commissioner 90 percent of the estimated
65.30liability for the month in which the taxable event occurred.
65.31(ii) On or before the 20th day of the month in which the taxable event occurs, the
65.32vendor must remit to the commissioner a prepayment for the month in which the taxable
65.33event occurs equal to 67 percent of the liability for the previous month.
66.1(iii) On or before the 20th day of the month following the month in which the taxable
66.2event occurred, the vendor must pay any additional amount of tax not previously remitted
66.3under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than
66.4the vendor's liability for the month in which the taxable event occurred, the vendor may
66.5take a credit against the next month's liability in a manner prescribed by the commissioner.
66.6(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to
66.7continue to make payments in the same manner, as long as the vendor continues having a
66.8liability of $120,000 or more during the most recent fiscal year ending June 30.
66.9(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required
66.10payment in the first month that the vendor is required to make a payment under either item
66.11(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make
66.12subsequent monthly payments in the manner provided in item (ii).
66.13(vi) For vendors making an accelerated payment under item (ii), for the first month
66.14that the vendor is required to make the accelerated payment, on the 20th of that month, the
66.15vendor will pay 100 percent of the liability for the previous month and a prepayment for
66.16the first month equal to 67 percent of the liability for the previous month.
66.17    (b) Notwithstanding paragraph (a), a vendor having a liability of $120,000 or more
66.18during a fiscal year ending June 30 must remit the June liability for the next year in the
66.19following manner:
66.20    (1) Two business days before June 30 of the year, the vendor must remit 90 percent
66.21of the estimated June liability to the commissioner.
66.22    (2) On or before August 20 of the year, the vendor must pay any additional amount
66.23of tax not remitted in June.
66.24    (c) A vendor having a liability of:
66.25    (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30,
66.262009 2013, and fiscal years thereafter, must remit by electronic means all liabilities on
66.27returns due for periods beginning in the all subsequent calendar year years on or before
66.28the 20th day of the month following the month in which the taxable event occurred, or
66.29on or before the 20th day of the month following the month in which the sale is reported
66.30under section 289A.18, subdivision 4; or
66.31(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
66.32thereafter, must remit by electronic means all liabilities in the manner provided in
66.33paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar
66.34year, except for 90 percent of the estimated June liability, which is due two business days
66.35before June 30. The remaining amount of the June liability is due on August 20.
67.1(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
67.2religious beliefs from paying electronically shall be allowed to remit the payment by mail.
67.3The filer must notify the commissioner of revenue of the intent to pay by mail before
67.4doing so on a form prescribed by the commissioner. No extra fee may be charged to a
67.5person making payment by mail under this paragraph. The payment must be postmarked
67.6at least two business days before the due date for making the payment in order to be
67.7considered paid on a timely basis.
67.8(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed
67.9under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
67.10chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
67.11paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
67.12be accelerated as provided in this subdivision.
67.13(f) At the start of the first calendar quarter at least 90 days after the cash flow account
67.14established in section 16A.152, subdivision 1, and the budget reserve account established in
67.15section 16A.152, subdivision 1a, reach the amounts listed in section 16A.152, subdivision
67.162
, paragraph (a), the remittance of the accelerated payments required under paragraph (a),
67.17clause (2), must be suspended. The commissioner of management and budget shall notify
67.18the commissioner of revenue when the accounts have reached the required amounts.
67.19Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of
67.20$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the
67.21taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day
67.22of the month following the month in which the taxable event occurred. Payments of tax
67.23liabilities for taxable events occurring in June under paragraph (b) are not changed.
67.24EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
67.252013, and all fiscal years thereafter.

67.26    Sec. 6. Minnesota Statutes 2012, section 289A.26, subdivision 2a, is amended to read:
67.27    Subd. 2a. Electronic payments. If the aggregate amount of estimated tax payments
67.28made is:
67.29(1) $20,000 or more in the fiscal year ending June 30, 2005; or
67.30(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years
67.31thereafter,
67.32all estimated tax payments in the all subsequent calendar year years must be paid by
67.33electronic means.
68.1EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
68.22013, and all fiscal years thereafter.

68.3    Sec. 7. Minnesota Statutes 2012, section 295.55, subdivision 4, is amended to read:
68.4    Subd. 4. Electronic payments. A taxpayer with an aggregate tax liability of:
68.5(1) $20,000 or more in the fiscal year ending June 30, 2005; or
68.6(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years
68.7thereafter,
68.8must remit all liabilities by electronic means in the all subsequent calendar year years.
68.9EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
68.102013, and all fiscal years thereafter.

68.11    Sec. 8. Minnesota Statutes 2012, section 297F.09, subdivision 7, is amended to read:
68.12    Subd. 7. Electronic payment. A cigarette or tobacco products distributor having a
68.13liability of $10,000 or more during a fiscal year ending June 30 must remit all liabilities in
68.14the all subsequent calendar year years by electronic means.
68.15EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
68.162013, and all fiscal years thereafter.

68.17    Sec. 9. Minnesota Statutes 2012, section 297G.09, subdivision 6, is amended to read:
68.18    Subd. 6. Electronic payments. A licensed brewer, importer, or wholesaler having
68.19an excise tax liability of $10,000 or more during a fiscal year ending June 30 must remit
68.20all excise tax liabilities in the all subsequent calendar year years by electronic means.
68.21EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
68.222013, and all fiscal years thereafter.

68.23    Sec. 10. [297I.11] AUTOMOBILE THEFT PREVENTION SURCHARGE.
68.24    Subdivision 1. Surcharge. Each insurer engaged in the writing of policies of
68.25automobile insurance shall collect a surcharge, at the rate of 50 cents per vehicle
68.26for every six months of coverage, on each policy of automobile insurance providing
68.27comprehensive insurance coverage issued or renewed in this state. The surcharge may not
68.28be considered premium for any purpose, including the computation of premium tax or
68.29agents' commissions. The amount of the surcharge must be separately stated on either a
68.30billing or policy declaration sent to an insured. Insurers shall remit the revenue derived
69.1from this surcharge to the commissioner of revenue for purposes of the automobile theft
69.2prevention program described in section 65B.84. For purposes of this subdivision, "policy
69.3of automobile insurance" has the meaning given it in section 65B.14, covering only the
69.4following types of vehicles as defined in section 168.002:
69.5(1) a passenger automobile;
69.6(2) a pickup truck;
69.7(3) a van but not commuter vans as defined in section 168.126; or
69.8(4) a motorcycle,
69.9except that no vehicle with a gross vehicle weight in excess of 10,000 pounds is included
69.10within this definition.
69.11    Subd. 2. Automobile theft prevention account. A special revenue account in
69.12the state treasury shall be credited with the proceeds of the surcharge imposed under
69.13subdivision 1. Of the revenue in the account, $1,300,000 each year must be transferred to
69.14the general fund. Revenues in excess of $1,300,000 each year may be used only for the
69.15automobile theft prevention program described in section 65B.84.
69.16    Subd. 3. Collection and administration. The commissioner shall collect and
69.17administer the surcharge imposed by this section in the same manner as the taxes imposed
69.18by this chapter.
69.19EFFECTIVE DATE.This section is effective for premiums collected after June
69.2030, 2013.

69.21    Sec. 11. Minnesota Statutes 2012, section 297I.30, is amended by adding a subdivision
69.22to read:
69.23    Subd. 10. Automobile theft prevention surcharge. On or before May 1, August
69.241, November 1, and February 1 of each year, every insurer required to pay the surcharge
69.25under section 297I.11 shall file a return with the commissioner for the preceding
69.26three-month period ending March 31, June 30, September 30, and December 31, in the
69.27form prescribed by the commissioner.
69.28EFFECTIVE DATE.This section is effective for premiums collected after June
69.2930, 2013.

69.30    Sec. 12. Minnesota Statutes 2012, section 297I.35, subdivision 2, is amended to read:
69.31    Subd. 2. Electronic payments. If the aggregate amount of tax and surcharges due
69.32under this chapter during a fiscal year ending June 30 is equal to or exceeds $10,000, or
69.33if the taxpayer is required to make payment of any other tax to the commissioner by
70.1electronic means, then all tax and surcharge payments in the all subsequent calendar year
70.2 years must be paid by electronic means.
70.3EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
70.42013, and all fiscal years thereafter.

70.5    Sec. 13. Minnesota Statutes 2012, section 473.843, subdivision 3, is amended to read:
70.6    Subd. 3. Payment of fee. On or before the 20th day of each month each operator
70.7shall pay the fee due under this section for the previous month, using a form provided
70.8by the commissioner of revenue.
70.9An operator having a fee of $10,000 or more during a fiscal year ending June 30
70.10must pay all fees in the all subsequent calendar year years by electronic means.
70.11EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
70.122013, and all fiscal years thereafter.

70.13    Sec. 14. REPEALER.
70.14(a) Minnesota Statutes 2012, section 168A.40, subdivisions 3 and 4, are repealed
70.15effective for premiums collected after June 30, 2013.
70.16(b) Minnesota Statutes 2012, section 270C.145, is repealed the day following final
70.17enactment.

70.18ARTICLE 7
70.19COMPENSATION COUNCIL

70.20    Section 1. Minnesota Statutes 2012, section 3.099, subdivision 1, is amended to read:
70.21    Subdivision 1. Salary; paydays; mileage; per diem. (a) The salary of each member
70.22of the legislature is equal to 33 percent of the salary authorized for the governor. An increase
70.23in the legislators' salaries resulting from an increase in the salary of the governor takes
70.24effect at the first time authorized under the Minnesota Constitution, article IV, section 9.
70.25(b) The compensation of each member of the legislature is due on the first day of the
70.26regular legislative session of the term and payable in equal parts on January 15, in the first
70.27month of each term and on the first day of each following month during the term for which
70.28the member was elected. The compensation of each member of the legislature elected
70.29at a special election is due on the day the member takes the oath of office and payable
70.30within ten days of taking the oath for the remaining part of the month in which the oath
70.31was taken, and then in equal parts on the first day of each following month during the
70.32term for which the member was elected.
71.1(c) Each member shall receive mileage for necessary travel to the place of meeting
71.2and returning to the member's residence in the amount and for trips as authorized by the
71.3senate for senate members and by the house of representatives for house members.
71.4(d) Each member shall also receive per diem living expenses during a regular or
71.5special session of the legislature in the amounts and for the purposes as determined by the
71.6senate for senate members and by the house of representatives for house members.
71.7(e) On January 15 in the first month of each term and on the first day of each following
71.8month, the secretary of the senate and the chief clerk of the house of representatives
71.9shall certify to the commissioner of management and budget, in duplicate, the amount of
71.10compensation then payable to each member of their respective houses and its total.
71.11EFFECTIVE DATE.This section is effective January 5, 2015. Beginning on
71.12January 5, 2015, the salaries of legislators are 33 percent of the salary of the governor on
71.13January 1, 2015. Beginning January 1, 2016, the salaries of legislators are 33 percent of
71.14the salary of the governor on January 1, 2016.

71.15    Sec. 2. Minnesota Statutes 2012, section 3.855, subdivision 3, is amended to read:
71.16    Subd. 3. Other salaries and compensation plans. The commission shall also:
71.17    (1) review and approve, reject, or modify a plan for compensation and terms and
71.18conditions of employment prepared and submitted by the commissioner of management
71.19and budget under section 43A.18, subdivision 2, covering all state employees who are
71.20not represented by an exclusive bargaining representative and whose compensation is not
71.21provided for by chapter 43A or other law;
71.22    (2) review and approve, reject, or modify a plan for total compensation and terms
71.23and conditions of employment for employees in positions identified as being managerial
71.24under section 43A.18, subdivision 3, whose salaries and benefits are not otherwise
71.25provided for in law or other plans established under chapter 43A;
71.26    (3) review and approve, reject, or modify recommendations for salaries submitted
71.27by the governor or other an appointing authority other than the governor under section
71.2815A.0815, subdivision 5 , covering agency head positions listed in section 15A.0815;
71.29    (4) review and approve, reject, or modify recommendations for salaries of officials
71.30of higher education systems under section 15A.081, subdivisions 7b and 7c;
71.31    (5) (4) review and approve, reject, or modify plans for compensation, terms, and
71.32conditions of employment proposed under section 43A.18, subdivisions 3a, 3b, and 4; and
71.33    (6) (5) review and approve, reject, or modify the plan for compensation, terms, and
71.34conditions of employment of classified employees in the office of the legislative auditor
71.35under section 3.971, subdivision 2.

72.1    Sec. 3. [4.52] SALARY INCREASES.
72.2The salary of the governor must be adjusted annually on January 1. The new salary
72.3must equal the salary for the previous year, increased by the percentage increase, if any, in
72.4the Consumer Price Index from October of the year preceding the previous year to October
72.5of the previous year. The commissioner of management and budget must publish the
72.6salary on the department's Web site. The index used must be the revised Consumer Price
72.7Index for all urban consumers for the St. Paul-Minneapolis metropolitan area prepared
72.8by the United States Department of Labor.

72.9    Sec. 4. Minnesota Statutes 2012, section 15A.0815, subdivision 1, is amended to read:
72.10    Subdivision 1. Salary limits. The governor or other appropriate appointing
72.11authority shall set the salary rates for positions listed in this section within the salary limits
72.12listed in subdivisions 2 to 4,. If the appointing authority is not the governor, the appointing
72.13authority's action is subject to approval of the Legislative Coordinating Commission and the
72.14legislature as provided by subdivision 5 and sections 3.855 and 15A.081, subdivision 7b.

72.15    Sec. 5. Minnesota Statutes 2012, section 15A.0815, subdivision 2, is amended to read:
72.16    Subd. 2. Group I salary limits. The salaries for positions in this subdivision may
72.17not exceed 95 percent of the salary of the governor: The salary for a position listed in this
72.18subdivision shall not exceed 133 percent of the salary of the governor. This subdivision
72.19applies to the following positions:
72.20    Commissioner of administration;
72.21    Commissioner of agriculture;
72.22    Commissioner of education;
72.23    Commissioner of commerce;
72.24    Commissioner of corrections;
72.25    Commissioner of health;
72.26    Executive director, Minnesota Office of Higher Education;
72.27    Commissioner, Housing Finance Agency;
72.28    Commissioner of human rights;
72.29    Commissioner of human services;
72.30    Commissioner of labor and industry;
72.31Commissioner of management and budget;
72.32    Commissioner of natural resources;
72.33    Director of Office of Strategic and Long-Range Planning;
72.34    Commissioner, Pollution Control Agency;
73.1    Executive director, Public Employees Retirement Association;
73.2    Commissioner of public safety;
73.3    Commissioner of revenue;
73.4    Executive director, State Retirement System;
73.5    Executive director, Teachers Retirement Association;
73.6    Commissioner of employment and economic development;
73.7    Commissioner of transportation; and
73.8    Commissioner of veterans affairs.

73.9    Sec. 6. Minnesota Statutes 2012, section 15A.0815, subdivision 3, is amended to read:
73.10    Subd. 3. Group II salary limits. The salaries for positions in this subdivision may
73.11not exceed 85 percent of the salary of the governor. The salary for a position listed in this
73.12subdivision shall not exceed 120 percent of the salary of the governor. This subdivision
73.13applies to the following positions:
73.14    Executive director of Gambling Control Board;
73.15    Commissioner, Iron Range Resources and Rehabilitation Board;
73.16    Commissioner, Bureau of Mediation Services;
73.17    Ombudsman for Mental Health and Developmental Disabilities;
73.18    Chair, Metropolitan Council;
73.19    School trust lands director;
73.20    Executive director of pari-mutuel racing; and
73.21    Commissioner, Public Utilities Commission.

73.22    Sec. 7. Minnesota Statutes 2012, section 15A.0815, subdivision 5, is amended to read:
73.23    Subd. 5. Appointing authorities to recommend certain salaries. (a) When
73.24the governor is the appointing authority, the governor, or other appropriate appointing
73.25authority, may submit to the Legislative Coordinating Commission recommendations for
73.26 must establish salaries within the salary limits for the positions listed in subdivisions
73.272 to 4. An appointing authority may also propose additions or deletions of positions
73.28from those listed. Before establishing a salary, the governor must consult with the
73.29commissioner of management and budget concerning the salary. In establishing the salary,
73.30the governor shall consider the criteria established in section 43A.18, subdivision 8, and
73.31the performance of individual incumbents. The performance evaluation must include a
73.32review of an incumbent's progress toward attainment of affirmative action goals. The
73.33governor shall establish an objective system for quantifying knowledge, abilities, duties,
74.1responsibilities, and accountabilities, and in determining recommendations rate each
74.2position by this system.
74.3(b) An appointing authority other than the governor may submit to the Legislative
74.4Coordinating Commission recommendations for salaries within the salary limits for the
74.5positions listed in subdivisions 2 to 4.
74.6(b) Before submitting the recommendations, the appointing authority shall consult
74.7with the commissioner of management and budget concerning the recommendations.
74.8(c) In making recommendations, the appointing authority shall consider the
74.9criteria established in section 43A.18, subdivision 8, and the performance of individual
74.10incumbents. The performance evaluation must include a review of an incumbent's progress
74.11toward attainment of affirmative action goals. The appointing authority shall establish
74.12an objective system for quantifying knowledge, abilities, duties, responsibilities, and
74.13accountabilities, and in determining recommendations, rate each position by this system.
74.14(d) Before the appointing authority's recommended salaries take effect, the
74.15recommendations must be reviewed and approved, rejected, or modified by the Legislative
74.16Coordinating Commission and the legislature under section 3.855, subdivisions 2 and
74.173
. If, when the legislature is not in session, the commission fails to reject or modify
74.18salary recommendations of the governor within 30 calendar days of their receipt, the
74.19recommendations are deemed to be approved.
74.20(c) The governor or other appointing authority may propose additions or deletions of
74.21positions from those listed in subdivisions 2 to 4.
74.22(e) (d) The governor or other appointing authority shall set the initial salary of a
74.23head of a new agency or a chair of a new metropolitan board or commission whose salary
74.24is not specifically prescribed by law after consultation with the commissioner, whose
74.25recommendation is advisory only. The amount of the new salary must be comparable to the
74.26salary of an agency head or commission chair having similar duties and responsibilities.
74.27(f) (e) The salary of a newly appointed head of an agency or chair of a metropolitan
74.28agency listed in subdivisions 2 to 4 who is appointed by someone other than the governor,
74.29may be increased or decreased by the appointing authority from the salary previously
74.30set for that position within 30 days of the new appointment after consultation with
74.31the commissioner. If the appointing authority increases a salary under this paragraph,
74.32the appointing authority shall submit the new salary to the Legislative Coordinating
74.33Commission and the full legislature for approval, modification, or rejection under section
74.343.855, subdivisions 2 and 3 . If, when the legislature is not in session, the commission fails
74.35to reject or modify salary recommendations of the governor within 30 calendar days of
74.36their receipt, the recommendations are deemed to be approved.

75.1    Sec. 8. Minnesota Statutes 2012, section 15A.082, subdivision 2, is amended to read:
75.2    Subd. 2. Membership. The Compensation Council consists of 16 members: two
75.3members of the house of representatives appointed by the speaker of the house, who are
75.4not members of the legislature; two members of the senate appointed by the majority
75.5leader of the senate, who are not members of the legislature; one member of the house
75.6of representatives appointed by the minority leader of the house of representatives, who
75.7is not a member of the legislature; one member of the senate appointed by the minority
75.8leader of the senate, who is not a member of the legislature; two nonjudges appointed by
75.9the chief justice of the Supreme Court; and one member from each congressional district
75.10appointed by the governor, of whom no more than four may belong to the same political
75.11party. Appointments must be made by October 1. The compensation and removal of
75.12members appointed by the governor or the chief justice shall be as provided in section
75.1315.059 , subdivisions 3 and 4. The Legislative Coordinating Commission shall provide the
75.14council with administrative and support services.

75.15    Sec. 9. Minnesota Statutes 2012, section 43A.17, subdivision 1, is amended to read:
75.16    Subdivision 1. Salary limits. As used in subdivisions 1 to 9, "salary" means hourly,
75.17monthly, or annual rate of pay including any lump-sum payments and cost-of-living
75.18adjustment increases but excluding payments due to overtime worked, shift or equipment
75.19differentials, work out of class as required by collective bargaining agreements or plans
75.20established under section 43A.18, and back pay on reallocation or other payments related
75.21to the hours or conditions under which work is performed rather than to the salary range
75.22or rate to which a class is assigned. For presidents of state universities, "salary" does
75.23not include a housing allowance provided through a compensation plan approved under
75.24section 43A.18, subdivision 3a.
75.25The salary, as established in section 15A.0815, of the head of a state agency in the
75.26executive branch is the upper limit on the salaries of individual employees in the agency.
75.27However, if an agency head is assigned a salary that is lower than the current salary of
75.28another agency employee, the employee retains the salary, but may not receive an increase
75.29in salary as long as the salary is above that of the agency head. The commissioner may
75.30grant exemptions from these upper limits as provided in subdivisions 3 and 4.

75.31    Sec. 10. Minnesota Statutes 2012, section 43A.17, subdivision 3, is amended to read:
75.32    Subd. 3. Unusual employment situations. (a) Upon the request of the appointing
75.33authority, and when the commissioner determines that changes in employment situations
75.34create difficulties in attracting or retaining employees, the commissioner may approve an
76.1unusual employment situation increase to advance an employee within the compensation
76.2plan salary range.
76.3(b) If the commissioner determines that a position requires special expertise
76.4necessitating a higher salary to attract or retain qualified persons, the commissioner may
76.5grant an exemption not to exceed 120 percent of the salary of the head of the agency or the
76.6maximum rate established for the position, whichever is less.
76.7(c) The following conditions apply to a request under paragraph (a) to advance an
76.8employee within a compensation plan or under paragraph (b) to exceed the salary of the
76.9agency head salary range:
76.10(1) the appointing authority making the request must submit a detailed written
76.11statement for each position contained in the request, specifying the changes in employment
76.12situations that create difficulties in attracting or retaining an employee for the position;
76.13(2) the commissioner shall review each proposal giving due consideration to salary
76.14rates paid to other employees in the same class and agency and, if other conditions in
76.15this paragraph are met, may approve any request that in the commissioner's judgment is
76.16in the best interest of the state;
76.17(3) the action must be consistent with applicable provisions of collective bargaining
76.18agreements or plans adopted under section 43A.18;
76.19(4) each increase or exemption must be separately documented for each employee or
76.20position and may not be applied to groups of employees; and
76.21(5) the commissioner shall report the granting of a request to the chair of the
76.22Legislative Coordinating Commission within three working days.

76.23    Sec. 11. COMPENSATION STUDY.
76.24The commissioner of management and budget must contract with an independent
76.25consultant to conduct a comprehensive market analysis of compensation for managerial
76.26positions in the executive branch in order to better align compensation for these positions
76.27with comparable positions in the private sector and with other relevant public sector
76.28employers. The analysis should evaluate total compensation, including insurance,
76.29retirement, and performance pay.

76.30    Sec. 12. CONSTITUTIONAL OFFICERS SALARIES.
76.31The salary of the governor is increased by three percent effective January 1, 2015,
76.32and by three percent on January 1, 2016. The salaries of the other constitutional officers
76.33shall be adjusted to retain their proportional relationship as of January 1, 2013, to the
76.34salary of the governor.

77.1    Sec. 13. REPEALER.
77.2Minnesota Statutes 2012, section 43A.17, subdivision 4, is repealed.

77.3    Sec. 14. EFFECTIVE DATE.
77.4Sections 2, 4, 7, 8, and 10 to 12 are effective the day following final enactment.
77.5Sections 5, 6, and 9 are effective retroactively from January 1, 2013. Section 3 is effective
77.6January 1, 2017.

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