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SF 4116

3rd Engrossment - 92nd Legislature (2021 - 2022) Posted on 05/23/2022 10:10am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to education; making forecast adjustments; making technical changes to
state financial policy; repealing obsolete statutes; amending Minnesota Statutes
2020, sections 16A.011, by adding a subdivision; 16A.103, by adding a subdivision;
16A.152, subdivision 1b; 16A.97; 16A.99, subdivision 4; Minnesota Statutes 2021
Supplement, section 16A.152, subdivision 2; Laws 2021, First Special Session
chapter 7, article 16, section 2, subdivisions 29, 31, 33; article 17, sections 3; 6;
10; 11; 12; 17, subdivision 3; 19; Laws 2021, First Special Session chapter 13,
article 1, section 10, subdivisions 2, 3, 4, 5, 6, 7, 9; article 2, section 4, subdivisions
2, 3, 4, 12, 27; article 3, section 7, subdivision 7; article 5, section 3, subdivisions
2, 3, 4, 5; article 7, section 2, subdivisions 2, 3; article 8, section 3, subdivisions
2, 3, 4; article 9, section 4, subdivisions 5, 6, 12; article 10, section 1, subdivisions
2, 5, 8; Laws 2022, chapter 50, article 1, section 1; article 2, section 2, subdivisions
5, 11; repealing Minnesota Statutes 2020, section 16A.98.

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

ARTICLE 1

E-12 EDUCATION FORECAST ADJUSTMENTS

A. GENERAL EDUCATION

Section 1.

Laws 2021, First Special Session chapter 13, article 1, section 10, subdivision
2, is amended to read:


Subd. 2.

General education aid.

For general education aid under Minnesota Statutes,
section 126C.13, subdivision 4:

$
deleted text begin 7,569,266,000
deleted text end new text begin 7,484,917,000
new text end
.....
2022
$
deleted text begin 7,804,527,000
deleted text end new text begin 7,643,082,000
new text end
.....
2023

The 2022 appropriation includes $717,326,000 for 2021 and deleted text begin $6,851,940,000deleted text end new text begin
$6,767,591,000
new text end for 2022.

The 2023 appropriation includes deleted text begin $734,520,000deleted text end new text begin $725,148,000new text end for 2022 and
deleted text begin $7,070,007,000deleted text end new text begin $6,917,934,000new text end for 2023.

Sec. 2.

Laws 2021, First Special Session chapter 13, article 1, section 10, subdivision 3,
is amended to read:


Subd. 3.

Enrollment options transportation.

For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

$
deleted text begin 12,000 deleted text end new text begin 1,000
new text end
.....
2022
$
deleted text begin 13,000 deleted text end new text begin 1,000
new text end
.....
2023

Sec. 3.

Laws 2021, First Special Session chapter 13, article 1, section 10, subdivision 4,
is amended to read:


Subd. 4.

Abatement aid.

For abatement aid under Minnesota Statutes, section 127A.49:

$
deleted text begin 2,897,000
deleted text end new text begin 2,042,000
new text end
.....
2022
$
deleted text begin 3,558,000
deleted text end new text begin 2,003,000
new text end
.....
2023

The 2022 appropriation includes $269,000 for 2021 and deleted text begin $2,628,000deleted text end new text begin $1,773,000new text end for
2022.

The 2023 appropriation includes deleted text begin $291,000deleted text end new text begin $197,000new text end for 2022 and deleted text begin $3,267,000deleted text end new text begin $1,806,000new text end
for 2023.

Sec. 4.

Laws 2021, First Special Session chapter 13, article 1, section 10, subdivision 5,
is amended to read:


Subd. 5.

Consolidation transition aid.

For districts consolidating under Minnesota
Statutes, section 123A.485:

$
309,000
.....
2022
$
deleted text begin 373,000
deleted text end new text begin 372,000
new text end
.....
2023

The 2022 appropriation includes $30,000 for 2021 and $279,000 for 2022.

The 2023 appropriation includes deleted text begin $31,000deleted text end new text begin $30,000new text end for 2022 and $342,000 for 2023.

Sec. 5.

Laws 2021, First Special Session chapter 13, article 1, section 10, subdivision 6,
is amended to read:


Subd. 6.

Nonpublic pupil education aid.

For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

$
deleted text begin 16,991,000
deleted text end new text begin 17,224,000
new text end
.....
2022
$
deleted text begin 17,450,000
deleted text end new text begin 19,029,000
new text end
.....
2023

The 2022 appropriation includes $1,903,000 for 2021 and deleted text begin $15,088,000deleted text end new text begin $15,321,000new text end for
2022.

The 2023 appropriation includes deleted text begin $1,676,000deleted text end new text begin $1,702,000new text end for 2022 and deleted text begin $15,774,000deleted text end new text begin
$17,327,000
new text end for 2023.

Sec. 6.

Laws 2021, First Special Session chapter 13, article 1, section 10, subdivision 7,
is amended to read:


Subd. 7.

Nonpublic pupil transportation.

For nonpublic pupil transportation aid under
Minnesota Statutes, section 123B.92, subdivision 9:

$
deleted text begin 19,770,000
deleted text end new text begin 19,143,000
new text end
.....
2022
$
deleted text begin 19,906,000 deleted text end new text begin
19,796,000
new text end
.....
2023

The 2022 appropriation includes $1,910,000 for 2021 and deleted text begin $17,860,000deleted text end new text begin $17,233,000new text end for
2022.

The 2023 appropriation includes deleted text begin $1,984,000deleted text end new text begin $1,914,000new text end for 2022 and deleted text begin $17,922,000deleted text end new text begin
$17,882,000
new text end for 2023.

Sec. 7.

Laws 2021, First Special Session chapter 13, article 1, section 10, subdivision 9,
is amended to read:


Subd. 9.

Career and technical aid

For career and technical aid under Minnesota Statutes,
section 124D.4531, subdivision 1b:

$
deleted text begin 2,668,000
deleted text end new text begin 2,582,000
new text end
.....
2022
$
deleted text begin 2,279,000
deleted text end new text begin 1,980,000
new text end
.....
2023

The 2022 appropriation includes $323,000 for 2021 and deleted text begin $2,345,000deleted text end new text begin $2,259,000new text end for
2022.

The 2023 appropriation includes deleted text begin $260,000deleted text end new text begin $251,000new text end for 2022 and deleted text begin $2,019,000deleted text end new text begin $1,729,000new text end
for 2023.

B. EDUCATION EXCELLENCE

Sec. 8.

Laws 2021, First Special Session chapter 13, article 2, section 4, subdivision 2, is
amended to read:


Subd. 2.

Achievement and integration aid.

For achievement and integration aid under
Minnesota Statutes, section 124D.862:

$
deleted text begin 84,057,000
deleted text end new text begin 80,310,000
new text end
.....
2022
$
deleted text begin 83,431,000
deleted text end new text begin 81,615,000
new text end
.....
2023

The 2022 appropriation includes $8,868,000 for 2021 and deleted text begin $75,189,000deleted text end new text begin $71,442,000new text end for
2022.

The 2023 appropriation includes deleted text begin $8,353,000deleted text end new text begin $7,938,000new text end for 2022 and deleted text begin $75,078,000deleted text end new text begin
$73,677,000
new text end for 2023.

Sec. 9.

Laws 2021, First Special Session chapter 13, article 2, section 4, subdivision 3, is
amended to read:


Subd. 3.

American Indian education aid.

For American Indian education aid under
Minnesota Statutes, section 124D.81, subdivision 2a:

$
deleted text begin 11,351,000
deleted text end new text begin 11,436,000
new text end
.....
2022
$
deleted text begin 11,775,000
deleted text end new text begin 11,889,000
new text end
.....
2023

The 2022 appropriation includes $1,102,000 for 2021 and deleted text begin $10,249,000deleted text end new text begin $10,334,000new text end for
2022.

The 2023 appropriation includes deleted text begin $1,138,000deleted text end new text begin $1,148,000new text end for 2022 and deleted text begin $10,637,000deleted text end new text begin
$10,741,000
new text end for 2023.

Sec. 10.

Laws 2021, First Special Session chapter 13, article 2, section 4, subdivision 4,
is amended to read:


Subd. 4.

Charter school building lease aid.

For building lease aid under Minnesota
Statutes, section 124E.22:

$
deleted text begin 93,547,000
deleted text end new text begin 89,499,000
new text end
.....
2022
$
deleted text begin 99,819,000
deleted text end new text begin 95,224,000
new text end
.....
2023

The 2022 appropriation includes $8,617,000 for 2021 and deleted text begin $84,930,000deleted text end new text begin $80,882,000new text end for
2022.

The 2023 appropriation includes deleted text begin $9,436,000deleted text end new text begin $8,986,000new text end for 2022 and deleted text begin $90,383,000deleted text end new text begin
$86,238,000
new text end for 2023.

Sec. 11.

Laws 2021, First Special Session chapter 13, article 2, section 4, subdivision 12,
is amended to read:


Subd. 12.

Interdistrict desegregation or integration transportation grants.

For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:

$
deleted text begin 12,310,000
deleted text end new text begin 9,900,000
new text end
.....
2022
$
deleted text begin 14,823,000
deleted text end new text begin 10,974,000
new text end
.....
2023

Sec. 12.

Laws 2021, First Special Session chapter 13, article 2, section 4, subdivision 27,
is amended to read:


Subd. 27.

Tribal contract school aid.

For Tribal contract school aid under Minnesota
Statutes, section 124D.83:

$
deleted text begin 2,743,000
deleted text end new text begin 2,808,000
new text end
.....
2022
$
deleted text begin 3,160,000
deleted text end new text begin 3,167,000
new text end
.....
2023

The 2022 appropriation includes $240,000 for 2021 and deleted text begin $2,503,000deleted text end new text begin $2,568,000new text end for
2022.

The 2023 appropriation includes deleted text begin $278,000deleted text end new text begin $285,000new text end for 2022 and $2,882,000 for 2023.

C. TEACHERS

Sec. 13.

Laws 2021, First Special Session chapter 13, article 3, section 7, subdivision 7,
is amended to read:


Subd. 7.

Alternative teacher compensation aid.

(a) For alternative teacher compensation
aid under Minnesota Statutes, section 122A.415, subdivision 4:

$
deleted text begin 88,896,000
deleted text end new text begin 88,559,000
new text end
.....
2022
$
deleted text begin 88,898,000
deleted text end new text begin 88,453,000
new text end
.....
2023

(b) The 2022 appropriation includes $8,877,000 for 2021 and deleted text begin $80,019,000deleted text end new text begin $79,682,000new text end
for 2022.

(c) The 2023 appropriation includes deleted text begin $8,891,000deleted text end new text begin $8,853,000new text end for 2022 and deleted text begin $80,007,000deleted text end new text begin
$79,600,000
new text end for 2023.

D. SPECIAL EDUCATION

Sec. 14.

Laws 2021, First Special Session chapter 13, article 5, section 3, subdivision 2,
is amended to read:


Subd. 2.

Special education; regular.

For special education aid under Minnesota Statutes,
section 125A.75:

$
deleted text begin 1,822,998,000
deleted text end new text begin 1,748,169,000
new text end
.....
2022
$
deleted text begin 1,945,533,000
deleted text end new text begin 1,885,422,000
new text end
.....
2023

The 2022 appropriation includes $215,125,000 for 2021 and deleted text begin $1,607,873,000deleted text end new text begin
$1,533,044,000
new text end for 2022.

The 2023 appropriation includes deleted text begin $226,342,000deleted text end new text begin $215,808,000new text end for 2022 and
deleted text begin $1,719,191,000deleted text end new text begin $1,669,614,000new text end for 2023.

Sec. 15.

Laws 2021, First Special Session chapter 13, article 5, section 3, subdivision 3,
is amended to read:


Subd. 3.

Aid for children with disabilities.

For aid under Minnesota Statutes, section
125A.75, subdivision 3, for children with disabilities placed in residential facilities within
the district boundaries for whom no district of residence can be determined:

$
deleted text begin 1,818,000
deleted text end new text begin 1,674,000
new text end
.....
2022
$
deleted text begin 2,010,000
deleted text end new text begin 1,887,000
new text end
.....
2023

If the appropriation for either year is insufficient, the appropriation for the other year is
available.

Sec. 16.

Laws 2021, First Special Session chapter 13, article 5, section 3, subdivision 4,
is amended to read:


Subd. 4.

Travel for home-based services.

For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

$
deleted text begin 465,000
deleted text end new text begin 356,000
new text end
.....
2022
$
deleted text begin 512,000
deleted text end new text begin 384,000
new text end
.....
2023

The 2022 appropriation includes $23,000 for 2021 and deleted text begin $442,000deleted text end new text begin $333,000new text end for 2022.

The 2023 appropriation includes deleted text begin $49,000deleted text end new text begin $36,000new text end for 2022 and deleted text begin $463,000deleted text end new text begin $348,000new text end for
2023.

Sec. 17.

Laws 2021, First Special Session chapter 13, article 5, section 3, subdivision 5,
is amended to read:


Subd. 5.

Court-placed special education revenue.

For reimbursing serving school
districts for unreimbursed eligible expenditures attributable to children placed in the serving
school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:

$
deleted text begin 24,000
deleted text end new text begin 0
new text end
.....
2022
$
25,000
.....
2023

E. FACILITIES

Sec. 18.

Laws 2021, First Special Session chapter 13, article 7, section 2, subdivision 2,
is amended to read:


Subd. 2.

Debt service equalization aid.

For debt service equalization aid under
Minnesota Statutes, section 123B.53, subdivision 6:

$
25,001,000
.....
2022
$
deleted text begin 24,286,000
deleted text end new text begin 24,315,000
new text end
.....
2023

The 2022 appropriation includes $2,588,000 for 2021 and $22,413,000 for 2022.

The 2023 appropriation includes $2,490,000 for 2022 and deleted text begin $21,796,000deleted text end new text begin $21,825,000new text end for
2023.

Sec. 19.

Laws 2021, First Special Session chapter 13, article 7, section 2, subdivision 3,
is amended to read:


Subd. 3.

Long-term facilities maintenance equalized aid.

For long-term facilities
maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:

$
deleted text begin 108,582,000
deleted text end new text begin 107,837,000
new text end
.....
2022
$
deleted text begin 111,077,000
deleted text end new text begin 108,870,000
new text end
.....
2023

The 2022 appropriation includes $10,660,000 for 2021 and deleted text begin $97,922,000deleted text end new text begin $97,177,000new text end
for 2022.

The 2023 appropriation includes deleted text begin $10,880,000deleted text end new text begin $10,797,000new text end for 2022 and deleted text begin $100,197,000deleted text end new text begin
$98,073,000
new text end for 2023.

F. NUTRITION

Sec. 20.

Laws 2021, First Special Session chapter 13, article 8, section 3, subdivision 2,
is amended to read:


Subd. 2.

School lunch.

For school lunch aid under Minnesota Statutes, section 124D.111,
and Code of Federal Regulations, title 7, section 210.17:

$
deleted text begin 16,661,000
deleted text end new text begin 14,187,000
new text end
.....
2022
$
deleted text begin 16,954,000
deleted text end new text begin 15,984,000
new text end
.....
2023

Sec. 21.

Laws 2021, First Special Session chapter 13, article 8, section 3, subdivision 3,
is amended to read:


Subd. 3.

School breakfast.

For traditional school breakfast aid under Minnesota Statutes,
section 124D.1158:

$
deleted text begin 11,848,000
deleted text end new text begin 20,000
new text end
.....
2022
$
deleted text begin 12,200,000
deleted text end new text begin 10,519,000
new text end
.....
2023

Sec. 22.

Laws 2021, First Special Session chapter 13, article 8, section 3, subdivision 4,
is amended to read:


Subd. 4.

Kindergarten milk.

For kindergarten milk aid under Minnesota Statutes,
section 124D.118:

$
deleted text begin 656,000
deleted text end new text begin 566,000
new text end
.....
2022
$
deleted text begin 658,000
deleted text end new text begin 659,000
new text end
.....
2023

G. EARLY EDUCATION

Sec. 23.

Laws 2021, First Special Session chapter 13, article 9, section 4, subdivision 5,
is amended to read:


Subd. 5.

Early childhood family education aid.

(a) For early childhood family education
aid under Minnesota Statutes, section 124D.135:

$
deleted text begin 35,003,000 deleted text end new text begin
34,160,000
new text end
.....
2022
$
deleted text begin 36,478,000 deleted text end new text begin
35,126,000
new text end
.....
2023

(b) The 2022 appropriation includes $3,341,000 for 2021 and deleted text begin $31,662,000deleted text end new text begin $30,819,000new text end
for 2022.

(c) The 2023 appropriation includes deleted text begin $3,518,000deleted text end new text begin $3,424,000new text end for 2022 and deleted text begin $32,960,000deleted text end new text begin
$31,702,000
new text end for 2023.

Sec. 24.

Laws 2021, First Special Session chapter 13, article 9, section 4, subdivision 6,
is amended to read:


Subd. 6.

Developmental screening aid.

(a) For developmental screening aid under
Minnesota Statutes, sections 121A.17 and 121A.19:

$
deleted text begin 3,582,000 deleted text end new text begin
3,655,000
new text end
.....
2022
$
deleted text begin 3,476,000 deleted text end new text begin
3,583,000
new text end
.....
2023

(b) The 2022 appropriation includes $360,000 for 2021 and deleted text begin $3,222,000deleted text end new text begin $3,295,000new text end for
2022.

(c) The 2023 appropriation includes deleted text begin $357,000deleted text end new text begin $366,000new text end for 2022 and deleted text begin $3,119,000deleted text end new text begin
$3,217,000
new text end for 2023.

Sec. 25.

Laws 2021, First Special Session chapter 13, article 9, section 4, subdivision 12,
is amended to read:


Subd. 12.

Home visiting aid.

(a) For home visiting aid under Minnesota Statutes, section
124D.135:

$
deleted text begin 462,000
deleted text end new text begin 455,000
new text end
.....
2022
$
deleted text begin 444,000
deleted text end new text begin 426,000
new text end
.....
2023

(b) The 2022 appropriation includes $47,000 for 2021 and deleted text begin $415,000deleted text end new text begin $408,000new text end for 2022.

(c) The 2023 appropriation includes deleted text begin $46,000deleted text end new text begin $45,000new text end for 2022 and deleted text begin $398,000deleted text end new text begin $381,000new text end
for 2023.

H. COMMUNITY EDUCATION AND LIFELONG LEARNING

Sec. 26.

Laws 2021, First Special Session chapter 13, article 10, section 1, subdivision 2,
is amended to read:


Subd. 2.

Community education aid.

For community education aid under Minnesota
Statutes, section 124D.20:

$
180,000
.....
2022
$
deleted text begin 155,000
deleted text end new text begin 175,000
new text end
.....
2023

The 2022 appropriation includes $22,000 for 2021 and $158,000 for 2022.

The 2023 appropriation includes $17,000 for 2022 and deleted text begin $138,000deleted text end new text begin $158,000new text end for 2023.

Sec. 27.

Laws 2021, First Special Session chapter 13, article 10, section 1, subdivision 5,
is amended to read:


Subd. 5.

School-age care aid.

For school-age care aid under Minnesota Statutes, section
124D.22:

$
deleted text begin 1,000
deleted text end new text begin 0
new text end
.....
2022
$
1,000
.....
2023

The 2022 appropriation includes $0 for 2021 and deleted text begin $1,000deleted text end new text begin $0new text end for 2022.

The 2023 appropriation includes $0 for 2022 and $1,000 for 2023.

Sec. 28.

Laws 2021, First Special Session chapter 13, article 10, section 1, subdivision 8,
is amended to read:


Subd. 8.

Adult basic education aid.

For adult basic education aid under Minnesota
Statutes, section 124D.531:

$
deleted text begin 53,191,000
deleted text end new text begin 51,764,000
new text end
.....
2022
$
deleted text begin 54,768,000
deleted text end new text begin 51,760,000
new text end
.....
2023

The 2022 appropriation includes $5,177,000 for 2021 and deleted text begin $48,014,000deleted text end new text begin $46,587,000new text end for
2022.

The 2023 appropriation includes deleted text begin $5,334,000deleted text end new text begin $5,176,000new text end for 2022 and deleted text begin $49,434,000deleted text end new text begin
$46,584,000
new text end for 2023.

ARTICLE 2

HUMAN SERVICES FORECAST ADJUSTMENTS AND CARRY FORWARD
AUTHORITY

Section 1. new text begin HUMAN SERVICES APPROPRIATIONS.
new text end

new text begin The dollar amounts shown in the columns marked "Appropriations" are added to or, if
shown in parentheses, are subtracted from the appropriations in Laws 2021, First Special
Session chapter 7, article 16, from the general fund or any fund named to the Department
of Human Services for the purposes specified in this article, to be available for the fiscal
year indicated for each purpose. The figures "2022" and "2023" used in this article mean
that the appropriations listed under them are available for the fiscal years ending June 30,
2022, or June 30, 2023, respectively. "The first year" is fiscal year 2022. "The second year"
is fiscal year 2023. "The biennium" is fiscal years 2022 and 2023.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2022
new text end
new text begin 2023
new text end

Sec. 2. new text begin COMMISSIONER OF HUMAN
SERVICES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin (585,901,000)
new text end
new text begin $
new text end
new text begin 182,791,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General Fund
new text end
new text begin (406,629,000)
new text end
new text begin 185,395,000
new text end
new text begin Health Care Access
Fund
new text end
new text begin (86,146,000)
new text end
new text begin (11,799,000)
new text end
new text begin Federal TANF
new text end
new text begin (93,126,000)
new text end
new text begin 9,195,000
new text end

new text begin Subd. 2. new text end

new text begin Forecasted Programs
new text end

new text begin (a) MFIP/DWP
new text end
new text begin Appropriations by Fund
new text end
new text begin General Fund
new text end
new text begin 72,106,000
new text end
new text begin (14,397,000)
new text end
new text begin Federal TANF
new text end
new text begin (93,126,000)
new text end
new text begin 9,195,000
new text end
new text begin (b) MFIP Child Care Assistance
new text end
new text begin (103,347,000)
new text end
new text begin (73,738,000)
new text end
new text begin (c) General Assistance
new text end
new text begin (4,175,000)
new text end
new text begin (1,488,000)
new text end
new text begin (d) Minnesota Supplemental Aid
new text end
new text begin 318,000
new text end
new text begin 1,613,000
new text end
new text begin (e) Housing Support
new text end
new text begin (1,994,000)
new text end
new text begin 9,257,000
new text end
new text begin (f) Northstar Care for Children
new text end
new text begin (9,613,000)
new text end
new text begin (4,865,000)
new text end
new text begin (g) MinnesotaCare
new text end
new text begin (86,146,000)
new text end
new text begin (11,799,000)
new text end

new text begin These appropriations are from the health care
access fund.
new text end

new text begin (h) Medical Assistance
new text end
new text begin Appropriations by Fund
new text end
new text begin General Fund
new text end
new text begin (348,364,000)
new text end
new text begin 292,880,000
new text end
new text begin Health Care Access
Fund
new text end
new text begin -0-
new text end
new text begin -0-
new text end
new text begin (i) Alternative Care Program
new text end
new text begin -0-
new text end
new text begin -0-
new text end
new text begin (j) Behavioral Health Fund
new text end
new text begin (11,560,000)
new text end
new text begin (23,867,000)
new text end

new text begin Subd. 3. new text end

new text begin Technical Activities
new text end

new text begin -0-
new text end
new text begin -0-
new text end

new text begin These appropriations are from the federal
TANF fund.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Laws 2021, First Special Session chapter 7, article 16, section 2, subdivision 29,
is amended to read:


Subd. 29.

Grant Programs; Disabilities Grants

31,398,000
31,010,000

(a) Training Stipends for Direct Support
Services Providers.
$1,000,000 in fiscal year
2022 is from the general fund for stipends for
individual providers of direct support services
as defined in Minnesota Statutes, section
256B.0711, subdivision 1. deleted text begin Thesedeleted text end new text begin The new text end stipends
are available to individual providers who have
completed designated voluntary trainings
made available through the State-Provider
Cooperation Committee formed by the State
of Minnesota and the Service Employees
International Union Healthcare Minnesota.
Any unspent appropriation in fiscal year 2022
is available in fiscal year 2023. This is a
onetime appropriation. This appropriation is
available only if the labor agreement between
the state of Minnesota and the Service
Employees International Union Healthcare
Minnesota under Minnesota Statutes, section
179A.54, is approved under Minnesota
Statutes, section 3.855.

(b) Parent-to-Parent Peer Support. $125,000
in fiscal year 2022 and $125,000 in fiscal year
2023 are from the general fund for a grant to
an alliance member of Parent to Parent USA
to support the alliance member's
parent-to-parent peer support program for
families of children with a disability or special
health care need.

(c) Self-Advocacy Grants. (1) $143,000 in
fiscal year 2022 and $143,000 in fiscal year
2023 are from the general fund for a grant
under Minnesota Statutes, section 256.477,
subdivision 1
.

(2) $105,000 in fiscal year 2022 and $105,000
in fiscal year 2023 are from the general fund
for subgrants under Minnesota Statutes,
section 256.477, subdivision 2.

(d) Minnesota Inclusion Initiative Grants.
$150,000 in fiscal year 2022 and $150,000 in
fiscal year 2023 are from the general fund for
grants under Minnesota Statutes, section
256.4772.

(e) Grants to Expand Access to Child Care
for Children with Disabilities.
$250,000 in
fiscal year 2022 and $250,000 in fiscal year
2023 are from the general fund for grants to
expand access to child care for children with
disabilities.new text begin Any unexpended amount in fiscal
year 2022 is available through June 30, 2023.
new text end
This is a onetime appropriation.

(f) Parenting with a Disability Pilot Project.
The general fund base includes $1,000,000 in
fiscal year 2024 and $0 in fiscal year 2025 to
implement the parenting with a disability pilot
project.

(g) Base Level Adjustment. The general fund
base is $29,260,000 in fiscal year 2024 and
$22,260,000 in fiscal year 2025.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Laws 2021, First Special Session chapter 7, article 16, section 2, subdivision 31,
is amended to read:


Subd. 31.

Grant Programs; Adult Mental Health
Grants

Appropriations by Fund
General
98,772,000
98,703,000
Opiate Epidemic
Response
2,000,000
2,000,000

(a) Culturally and Linguistically
Appropriate Services Implementation
Grants.
$2,275,000 in fiscal year 2022 and
$2,206,000 in fiscal year 2023 are from the
general fund for grants to disability services,
mental health, and substance use disorder
treatment providers to implement culturally
and linguistically appropriate services
standards, according to the implementation
and transition plan developed by the
commissioner.new text begin Any unexpended amount in
fiscal year 2022 is available through June 30,
2023.
new text end The general fund base for this
appropriation is $1,655,000 in fiscal year 2024
and $0 in fiscal year 2025.

(b) Base Level Adjustment. The general fund
base is $93,295,000 in fiscal year 2024 and
$83,324,000 in fiscal year 2025. The opiate
epidemic response fund base is $2,000,000 in
fiscal year 2024 and $0 in fiscal year 2025.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Laws 2021, First Special Session chapter 7, article 16, section 2, subdivision 33,
is amended to read:


Subd. 33.

Grant Programs; Chemical
Dependency Treatment Support Grants

Appropriations by Fund
General
4,273,000
4,274,000
Lottery Prize
1,733,000
1,733,000
Opiate Epidemic
Response
500,000
500,000

(a) Problem Gambling. $225,000 in fiscal
year 2022 and $225,000 in fiscal year 2023
are from the lottery prize fund for a grant to
the state affiliate recognized by the National
Council on Problem Gambling. The affiliate
must provide services to increase public
awareness of problem gambling, education,
training for individuals and organizations
providing effective treatment services to
problem gamblers and their families, and
research related to problem gambling.

(b) Recovery Community Organization
Grants.
$2,000,000 in fiscal year 2022 and
$2,000,000 in fiscal year 2023 are from the
general fund for grants to recovery community
organizations, as defined in Minnesota
Statutes, section 254B.01, subdivision 8, to
provide for costs and community-based peer
recovery support services that are not
otherwise eligible for reimbursement under
Minnesota Statutes, section 254B.05, as part
of the continuum of care for substance use
disorders.new text begin Any unexpended amount in fiscal
year 2022 is available through June 30, 2023.
new text end
The general fund base for this appropriation
is $2,000,000 in fiscal year 2024 and $0 in
fiscal year 2025

(c) Base Level Adjustment. The general fund
base is $4,636,000 in fiscal year 2024 and
$2,636,000 in fiscal year 2025. The opiate
epidemic response fund base is $500,000 in
fiscal year 2024 and $0 in fiscal year 2025.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Laws 2021, First Special Session chapter 7, article 17, section 3, is amended to
read:


Sec. 3. GRANTS FOR TECHNOLOGY FOR HCBS RECIPIENTS.

(a) This act includes $500,000 in fiscal year 2022 and $2,000,000 in fiscal year 2023
for the commissioner of human services to issue competitive grants to home and
community-based service providers. Grants must be used to provide technology assistance,
including but not limited to Internet services, to older adults and people with disabilities
who do not have access to technology resources necessary to use remote service delivery
and telehealth.new text begin Any unexpended amount in fiscal year 2022 is available through June 30,
2023.
new text end The general fund base included in this act for this purpose is $1,500,000 in fiscal year
2024 and $0 in fiscal year 2025.

(b) All grant activities must be completed by March 31, 2024.

(c) This section expires June 30, 2024.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Laws 2021, First Special Session chapter 7, article 17, section 6, is amended to
read:


Sec. 6. TRANSITION TO COMMUNITY INITIATIVE.

(a) This act includes $5,500,000 in fiscal year 2022 and $5,500,000 in fiscal year 2023
for additional funding for grants awarded under the transition to community initiative
described in Minnesota Statutes, section 256.478.new text begin Any unexpended amount in fiscal year
2022 is available through June 30, 2023.
new text end The general fund base in this act for this purpose
is $4,125,000 in fiscal year 2024 and $0 in fiscal year 2025.

(b) All grant activities must be completed by March 31, 2024.

(c) This section expires June 30, 2024.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Laws 2021, First Special Session chapter 7, article 17, section 10, is amended to
read:


Sec. 10. PROVIDER CAPACITY GRANTS FOR RURAL AND UNDERSERVED
COMMUNITIES.

(a) This act includes $6,000,000 in fiscal year 2022 and $8,000,000 in fiscal year 2023
for the commissioner to establish a grant program for small provider organizations that
provide services to rural or underserved communities with limited home and
community-based services provider capacity. The grants are available to build organizational
capacity to provide home and community-based services in Minnesota and to build new or
expanded infrastructure to access medical assistance reimbursement.new text begin Any unexpended
amount in fiscal year 2022 is available through June 30, 2023.
new text end The general fund base in this
act for this purpose is $8,000,000 in fiscal year 2024 and $0 in fiscal year 2025.

(b) The commissioner shall conduct community engagement, provide technical assistance,
and establish a collaborative learning community related to the grants available under this
section and work with the commissioner of management and budget and the commissioner
of the Department of Administration to mitigate barriers in accessing grant funds. Funding
awarded for the community engagement activities described in this paragraph is exempt
from state solicitation requirements under Minnesota Statutes, section 16B.97, for activities
that occur in fiscal year 2022.

(c) All grant activities must be completed by March 31, 2024.

(d) This section expires June 30, 2024.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Laws 2021, First Special Session chapter 7, article 17, section 11, is amended to
read:


Sec. 11. EXPAND MOBILE CRISIS.

(a) This act includes $8,000,000 in fiscal year 2022 and $8,000,000 in fiscal year 2023
for additional funding for grants for adult mobile crisis services under Minnesota Statutes,
section 245.4661, subdivision 9, paragraph (b), clause (15).new text begin Any unexpended amounts in
fiscal year 2022 and fiscal year 2023 are available through June 30, 2024.
new text end The general fund
base in this act for this purpose is $4,000,000 in fiscal year 2024 and $0 in fiscal year 2025.

(b) Beginning April 1, 2024, counties may fund and continue conducting activities
funded under this section.

(c) All grant activities must be completed by March 31, 2024.

(d) This section expires June 30, 2024.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Laws 2021, First Special Session chapter 7, article 17, section 12, is amended to
read:


Sec. 12. PSYCHIATRIC RESIDENTIAL TREATMENT FACILITY AND CHILD
AND ADOLESCENT MOBILE TRANSITION UNIT.

(a) This act includes $2,500,000 in fiscal year 2022 and $2,500,000 in fiscal year 2023
for the commissioner of human services to create children's mental health transition and
support teams to facilitate transition back to the community of children from psychiatric
residential treatment facilities, and child and adolescent behavioral health hospitals.new text begin Any
unexpended amount in fiscal year 2022 is available through June 30, 2023.
new text end The general
fund base included in this act for this purpose is $1,875,000 in fiscal year 2024 and $0 in
fiscal year 2025.

(b) Beginning April 1, 2024, counties may fund and continue conducting activities
funded under this section.

(c) This section expires March 31, 2024.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Laws 2021, First Special Session chapter 7, article 17, section 17, subdivision 3,
is amended to read:


Subd. 3.

Respite services for older adults grants.

(a) This act includes $2,000,000 in
fiscal year 2022 and $2,000,000 in fiscal year 2023 for the commissioner of human services
to establish a grant program for respite services for older adults. The commissioner must
award grants on a competitive basis to respite service providers.new text begin Any unexpended amount
in fiscal year 2022 is available through June 30, 2023.
new text end The general fund base included in
this act for this purpose is $2,000,000 in fiscal year 2024 and $0 in fiscal year 2025.

(b) All grant activities must be completed by March 31, 2024.

(c) This subdivision expires June 30, 2024.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Laws 2021, First Special Session chapter 7, article 17, section 19, is amended to
read:


Sec. 19. CENTERS FOR INDEPENDENT LIVING HCBS ACCESS GRANT.

(a) This act includes $1,200,000 in fiscal year 2022 and $1,200,000 in fiscal year 2023
for grants to expand services to support people with disabilities from underserved
communities who are ineligible for medical assistance to live in their own homes and
communities by providing accessibility modifications, independent living services, and
public health program facilitation. The commissioner of human services must award the
grants in equal amounts to deleted text begin the eight organizationsdeleted text end new text begin grantees. To be eligible, a grantee must
be an organization
new text end defined in Minnesota Statutes, section 268A.01, subdivision 8.new text begin Any
unexpended amount in fiscal year 2022 is available through June 30, 2023.
new text end The general
fund base included in this act for this purpose is $0 in fiscal year 2024 and $0 in fiscal year
2025.

(b) All grant activities must be completed by March 31, 2024.

(c) This section expires June 30, 2024.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 3

STATE FISCAL POLICY

Section 1.

Minnesota Statutes 2020, section 16A.011, is amended by adding a subdivision
to read:


new text begin Subd. 15a. new text end

new text begin Transfer. new text end

new text begin "Transfer" means the authorization to move state money from one
fund, account, or agency to another fund, account, or agency within the state treasury. When
authorized by law, a transfer must reduce money in one fund, account, or agency and increase
the same amount to a separate fund, account, or agency.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2020, section 16A.103, is amended by adding a subdivision to
read:


new text begin Subd. 1i. new text end

new text begin Budget close report. new text end

new text begin By October 15 of each odd-numbered year, the
commissioner shall prepare a detailed fund balance analysis of the general fund for the
previous biennium. The analysis shall include a comparison to the most recent publicly
available fund balance analysis of the general fund. The commissioner shall provide this
analysis to the chairs and ranking minority members of the house of representatives Ways
and Means Committee and the senate Finance Committee and shall post the analysis on the
agency's website.
new text end

Sec. 3.

Minnesota Statutes 2020, section 16A.152, subdivision 1b, is amended to read:


Subd. 1b.

Budget reserve level.

(a) The commissioner of management and budget shall
calculate the budget reserve level by multiplying the current biennium's general fund
nondedicated revenues and the most recent budget reserve percentage under subdivision 8.

(b) If, on the basis of a November forecast of general fund revenues and expenditures,
the commissioner of management and budget determines that there will be a positive
unrestricted general fund balance at the close of the biennium and that the provisions of
subdivision 2, paragraph (a), deleted text begin clauses (1), (2), (3), and (4),deleted text end are satisfied, the commissioner
shall transfer to the budget reserve account in the general fund the amount necessary to
increase the budget reserve to the budget reserve level determined under paragraph (a). The
amount of the transfer authorized in this paragraph shall not exceed 33 percent of the positive
unrestricted general fund balance determined in the forecast.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2021 Supplement, section 16A.152, subdivision 2, is amended
to read:


Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of management and budget determines that
there will be a positive unrestricted budgetary general fund balance at the close of the
biennium, the commissioner of management and budget must allocate money to the following
accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account reaches
deleted text begin $2,377,399,000deleted text end new text begin $2,655,745,000new text end ;

(3) the amount necessary to increase the aid payment schedule for school district aids
and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest
tenth of a percent without exceeding the amount available and with any remaining funds
deposited in the budget reserve;new text begin and
new text end

(4) the amount necessary to restore all or a portion of the net aid reductions under section
127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
subdivision 5
, by the same amountdeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (5) the amount necessary to increase the Minnesota 21st century fund by not more than
the difference between $5,000,000 and the sum of the amounts credited and canceled to it
in the previous 12 months under Laws 2020, chapter 71, article 1, section 11, until the sum
of all transfers under this section and all amounts credited or canceled under Laws 2020,
chapter 71, article 1, section 11, equals $20,000,000; and
deleted text end

deleted text begin (6) for a forecast in November only, the amount remaining after the transfer under clause
(5) must be used to reduce the percentage of accelerated June liability sales tax payments
required under section 289A.20, subdivision 4, paragraph (b), until the percentage equals
zero, rounded to the nearest tenth of a percent. By March 15 following the November
forecast, the commissioner must provide the commissioner of revenue with the percentage
of accelerated June liability owed based on the reduction required by this clause. By April
15 each year, the commissioner of revenue must certify the percentage of June liability
owed by vendors based on the reduction required by this clause.
deleted text end

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.
The commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2020, section 16A.97, is amended to read:


16A.97 TOBACCO BONDS.

The commissioner may sell and issue debt under deleted text begin either or both of sections 16A.98 anddeleted text end new text begin
section
new text end 16A.99, but the net proceeds of bonds issued and sold under deleted text begin those sections togetherdeleted text end new text begin
that section
new text end must not exceed $640,000,000 during fiscal years 2012 and 2013.

Sec. 6.

Minnesota Statutes 2020, section 16A.99, subdivision 4, is amended to read:


Subd. 4.

Refunding bonds.

The commissioner from time to time may issue appropriation
bonds for the purpose of refunding any appropriation bonds deleted text begin or tobacco securitization bonds
authorized under section 16A.98
deleted text end then outstanding, including the payment of any redemption
premiums on the bonds, any interest accrued or to accrue to the redemption date, and costs
related to the issuance and sale of the refunding bonds. The proceeds of any refunding bonds
may, in the discretion of the commissioner, be applied to the purchase or payment at maturity
of the appropriation bonds to be refunded, to the redemption of the outstanding bonds on
any redemption date, or to pay interest on the refunding bonds and may, pending application,
be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any
escrowed proceeds, pending such use, may be invested and reinvested in obligations that
are authorized investments under section 11A.24. The income earned or realized on the
investment may also be applied to the payment of the bonds to be refunded or interest or
premiums on the refunded bonds, or to pay interest on the refunding bonds. After the terms
of the escrow have been fully satisfied, any balance of the proceeds and any investment
income may be returned to the general fund or, if applicable, the appropriation bond proceeds
account for use in any lawful manner. All refunding bonds issued under this subdivision
must be prepared, executed, delivered, and secured by appropriations in the same manner
as the bonds to be refunded.

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 16A.98, new text end new text begin is repealed.
new text end

ARTICLE 4

MISCELLANEOUS

Section 1.

Laws 2022, chapter 50, article 1, section 1, is amended to read:


Section 1. APPROPRIATION; UNEMPLOYMENT INSURANCE TRUST FUND
LOAN REPAYMENT AND REPLENISHMENT.

Subdivision 1.

Appropriation.

$2,324,175,000 from the state fiscal recovery federal
fund and $405,825,000 from the general fund in fiscal year 2022 are appropriated to the
commissioner of employment and economic development for the purposes of this deleted text begin sectiondeleted text end new text begin
article
new text end .

Subd. 2.

Repayment.

Within ten days following enactment of this section, the
commissioner must determine the sum of any outstanding loans and any interest accrued
on the loans from the federal unemployment insurance trust fund, and issue payments to
the federal unemployment trust fund equal to that sum.

Subd. 3.

Replenishment.

Following the full repayment of outstanding loans from the
federal unemployment insurance trust fund, the commissioner must deposit into the
unemployment insurance trust fund all the remaining money appropriated deleted text begin indeleted text end new text begin fornew text end this section.

Sec. 2.

Laws 2022, chapter 50, article 2, section 2, subdivision 5, is amended to read:


Subd. 5.

Eligibility; payments.

(a) After the deadline for applications under subdivision
4 has elapsed, the commissioner of revenue must determine the payment amount based on
available appropriations and the number of applications received from eligible frontline
workersnew text begin and the number of eligible family child care providers reported by the commissioner
of human services under the Family Child Care Provider Onetime Payments Program
new text end . The
payment amount must be the same for each eligible frontline workernew text begin and eligible family
child care provider,
new text end and must not exceed $1,500.

new text begin (b) As soon as practicable, the commissioner of revenue shall transfer to the commissioner
of human services the amount necessary to make onetime payments of the amount determined
under paragraph (a) to all family child care providers deemed by the commissioner of human
services to be eligible for the Family Child Care Provider Onetime Payments Program.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end As soon as practicable, the commissioner of revenue must make payments of the
amount determined under paragraph (a) to all eligible frontline workers who applied in
accordance with subdivision 4.

deleted text begin (c)deleted text end new text begin (d)new text end The commissioner of revenue may contract with a third party to implement part
or all of the payment process required under this subdivision.

deleted text begin (d)deleted text end new text begin (e)new text end If the commissioner of revenue determines that a payment was made under this
section to an ineligible individual, the commissioner may issue an order of assessment to
the individual receiving the payment for the amount of the payment. The order must be
made within two years after the date of the payment or six years after the date of the payment
in the case of fraud. The audit, assessment, appeal, collection, enforcement, and
administrative provisions of Minnesota Statutes, chapters 270C and 289A, apply to the
orders issued under this section.

Sec. 3.

Laws 2022, chapter 50, article 2, section 2, subdivision 11, is amended to read:


Subd. 11.

Appropriations.

(a) $500,000,000 in fiscal year 2022 is appropriated from
the general fund to the commissioner of revenue for payments under this section. This is a
onetime appropriation.

(b) $11,650,000 in fiscal year 2022 is appropriated from the general fund to the
commissioner of labor and industry for administrative costs to implement the payments
under this section.

(c) The commissioner of labor and industry may transfer money from this appropriation
to the commissioner of revenue or the commissioner of employment and economic
development for administrative costs to implement the program and payments under this
section.

(d) new text begin Up to $5,000,000 of the appropriation under paragraph (a) is for the commissioner
of human services to provide frontline child care worker payments. The commissioner may
use up to $326,000 of this amount for administration of these payments.
new text end

new text begin (e) new text end The appropriations in this subdivision are available until June 30, 2023.

Sec. 4. new text begin FAMILY CHILD CARE PROVIDER ONETIME PAYMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Family child care onetime payments. new text end

new text begin The commissioner of human
services shall make onetime payments to eligible family child care providers to recognize
their service as critical workers during the COVID-19 pandemic. Payments made to family
child care providers shall be equal to payments made to frontline workers in accordance
with Laws 2022, chapter 50, article 2.
new text end

new text begin Subd. 2. new text end

new text begin Eligible providers. new text end

new text begin (a) A provider is eligible to receive a payment under this
section if the provider:
new text end

new text begin (1) was a family or group family child care provider licensed under Minnesota Statutes,
chapter 245A, following licensing standards in Minnesota Rules, chapter 9502, and open
and operating for at least 120 hours between March 15, 2020, and June 30, 2021; and
new text end

new text begin (2) is not eligible to and will not receive a frontline worker payment, as provided in
Laws 2022, chapter 50, article 2.
new text end

new text begin (b) The provider must not currently be or have been at any time during the period between
March 15, 2020, and June 30, 2021:
new text end

new text begin (1) the subject of a finding of fraud;
new text end

new text begin (2) prohibited from receiving public funds under Minnesota Statutes, section 245.095;
or
new text end

new text begin (3) under revocation, suspension, temporary immediate suspension, or decertification,
regardless of whether the action is under appeal.
new text end

new text begin Subd. 3. new text end

new text begin Application; commissioner responsibilities. new text end

new text begin (a) To qualify for a payment
under this section, an eligible provider must apply to the commissioner of human services
in the form and manner specified by the commissioner.
new text end

new text begin (b) As soon as practicable after final enactment, the commissioner must establish a
process for accepting applications for payments under this section and begin accepting
applications. The commissioner must not accept an application submitted more than 45
days after opening the application period.
new text end

new text begin Subd. 4. new text end

new text begin Number of eligible providers. new text end

new text begin The commissioner of human services must
provide the commissioner of revenue with the number of family child care providers that
are eligible for payments under this section. The commissioner of revenue shall include the
number of eligible family child care providers when determining the payment amount for
frontline workers in accordance with Laws 2022, chapter 50, article 2, subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Data practices. new text end

new text begin (a) Data collected or created by the commissioner of human
services because a provider has sought information about, applied for, been denied, or
received a payment under this section are classified as not public data, as defined in
Minnesota Statutes, section 13.02, subdivision 8a.
new text end

new text begin (b) Data classified as not public data may be shared or disclosed between the
commissioners of human services, revenue, employment and economic development, labor
and industry; entities defined as part of the welfare system under Minnesota Statutes, section
13.46, subdivision 1, paragraph (c); and any third-party vendor contracted with under
subdivision 4, to the extent necessary to verify eligibility and administer payments under
this section, and as otherwise authorized by law.
new text end

new text begin Subd. 6. new text end

new text begin Payments not to be considered income. new text end

new text begin (a) For the purposes of this subdivision,
"subtraction" has the meaning given in Minnesota Statutes, section 290.0132, subdivision
1, and the rules in that subdivision apply for this subdivision. The definitions in Minnesota
Statutes, section 290.01, apply to this subdivision.
new text end

new text begin (b) The amount of family child care onetime payments received under this section is a
subtraction.
new text end

new text begin (c) Family child care onetime payments under this section are excluded from income,
as defined in Minnesota Statutes, sections 290.0674, subdivision 2a, and 290A.03, subdivision
3.
new text end

new text begin (d) Notwithstanding any law to the contrary, payments under this section must not be
considered income, assets, or personal property for purposes of determining eligibility or
recertifying eligibility for:
new text end

new text begin (1) child care assistance programs under Minnesota Statutes, chapter 119B;
new text end

new text begin (2) general assistance, Minnesota supplemental aid, and food support under Minnesota
Statutes, chapter 256D;
new text end

new text begin (3) housing support under Minnesota Statutes, chapter 256I;
new text end

new text begin (4) Minnesota family investment program and diversionary work program under
Minnesota Statutes, chapter 256J; and
new text end

new text begin (5) economic assistance programs under Minnesota Statutes, chapter 256P.
new text end

new text begin (e) The commissioner of human services must not consider family child care onetime
payments under this section as income or assets under Minnesota Statutes, section 256B.056,
subdivision 1a, paragraph (a), 3, or 3c, or for persons with eligibility determined under
Minnesota Statutes, section 256B.057, subdivision 3, 3a, or 3b.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin No later than 90 days following the end of the payments to eligible
providers under this section, the commissioner of human services shall report to the legislative
committees with jurisdiction over human services and early childhood care and education
about the program established under this section. The report must include:
new text end

new text begin (1) the payment amount paid to eligible providers;
new text end

new text begin (2) the number of eligible providers who applied, including the number in each county;
and
new text end

new text begin (3) the number of applications that were denied and the reason for denial.
new text end

new text begin Subd. 8. new text end

new text begin Separate and distinct program. new text end

new text begin The Family Child Care Provider Onetime
Payments Program is separate and distinct from the Frontline Worker Payments Program
established in Laws 2022, chapter 50, article 2. The Family Child Care Provider Onetime
Payment Program is not subject to the Frontline Worker Payments Program requirements
and the Frontline Worker Payments Program is not subject to the Family Child Care Provider
Onetime Payment Program requirements.
new text end

APPENDIX

Repealed Minnesota Statutes: S4116-3

16A.98 TOBACCO SECURITIZATION BONDS.

Subdivision 1.

Definitions.

The definitions in this subdivision apply to this section.

(a) "Authority" means the Tobacco Securitization Authority created and established under subdivision 3.

(b) "Authorized officer" means any of the members of the authority identified and described in subdivision 3.

(c) "Bond" means any instrument evidencing the obligation to pay money authorized or issued by the authority as provided by this section, including without limitation, bonds, notes, or certificates.

(d) "Bondholder" means, in the case of a bond issued in registered form, the registered owner of the bond and otherwise, the owner of the bond.

(e) "Commissioner" means the commissioner of management and budget.

(f) "Consent judgment" means the consent judgment, as the same has been and may be corrected, amended, or modified, in the action styled as The State of Minnesota, By Hubert Humphrey, III, Its Attorney General, and Blue Cross and Blue Shield of Minnesota v. Philip Morris Incorporated, et al., No. C1-94-8565 (Minnesota District Court, Second Judicial District, May 8, 1998).

(g) "General tobacco subaccount" means the account established by the authority within the tobacco settlement recovery account established under subdivision 12 for the net proceeds of bonds.

(h) "Settlement agreement" means the settlement agreement and stipulation for entry of consent judgment, dated May 8, 1998, between the State of Minnesota, By Hubert Humphrey, III, Its Attorney General, and Blue Cross and Blue Shield of Minnesota, on the one hand, and Philip Morris Incorporated, et al., on the other hand, and the subject of the consent judgment.

(i) "Net proceeds of bonds" means the gross proceeds of the sale of bonds issued under subdivision 5, less any amounts applied or to be applied to pay transaction and administrative expenses, including underwriting discount, to pay capitalized interest and to fund any reserves deemed necessary or appropriate by the authority, but does not include any investment earnings realized thereon.

(j) "Participating manufacturer" means a tobacco product manufacturer that is or becomes a signatory to the settlement agreement.

(k) "Pledged tobacco revenues" means the state's tobacco settlement revenues sold to the authority under the sale agreement and pledged by the authority for the payment of bonds and any related bond facility.

(l) "Related bond facility" means any interest rate exchange or similar agreement or any bond insurance policy, letter of credit or other credit enhancement facility, liquidity facility, guaranteed investment or reinvestment agreement, or other similar agreement, arrangement, or contract.

(m) "Residual amount in tobacco settlement revenues" means any tobacco settlement revenues determined as moneys received but not required for the identified period in which revenues are received, to pay principal or interest on bonds or administrative or transaction expenses of the authority, or to fund reserves or other requirements relating to bonds issued or related bond facilities made under this section.

(n) "Sale agreement" means any agreement authorized as provided in this section in which the state provides for the sale of all or a portion of the tobacco settlement revenues to the authority.

(o) "State" means the state of Minnesota.

(p) "Tobacco settlement bond proceeds fund" is established within the state treasury and consists of the net proceeds from any sale, conveyance, or transfer of the state's tobacco settlement revenues from the authority.

(q) "Tobacco settlement recovery account" is the account established by the authority outside of the state's treasury.

(r) "Tobacco settlement revenues subaccount" means the account established by the authority within the tobacco settlement recovery account established under subdivision 12 for receipt of tobacco settlement revenues and for payment of debt service of bonds authorized under this section.

(s) "Tobacco settlement residual subaccount" means the account established by the authority within the tobacco settlement recovery account established under subdivision 12 for receipt of the residual amount in the tobacco settlement revenues subaccount.

(t) "Tobacco settlement revenues" means all tobacco settlement payments received by the state on and after July 21, 2011, and required to be made under the terms of the settlement agreement by participating manufacturers, and the state's rights to receive the tobacco settlement payments on and after July 21, 2011, exclusive of any payments made with respect to liability to make those payments for calendar years completed before July 21, 2011.

Subd. 2.

Ownership, transfer, and sale of state's right to tobacco settlement revenues.

All tobacco settlement revenues received and to be received by the state are the property of the state, to be used as provided by law, including a sale, assignment, or transfer of the right to receive the tobacco settlement revenues under this subdivision. During fiscal years 2012 and 2013, the commissioner may sell, convey, or otherwise transfer to the authority, and may take any action necessary to facilitate and complete the sale, conveyance, or transfer to the authority, the tobacco settlement revenues in exchange for the net proceeds of bonds and a right to the residual amount in the tobacco settlement revenues subaccount. Unless otherwise directed by statute, the net proceeds of any such sale, conveyance, or transfer shall be deposited in the general tobacco subaccount. The authority's purchased interest in tobacco settlement revenues received by the state from time to time shall be deposited in the tobacco settlement revenues subaccount, and the residual amount in tobacco settlement revenues received by the state from time to time shall be deposited in the tobacco settlement residual subaccount, in each case to be applied for the purposes and in the manner described in this section.

Any sale, conveyance, or other transfer authorized by this subdivision shall be evidenced by an instrument or agreement in writing signed on behalf of the state by the commissioner. A certified copy of the instrument or agreement shall be filed with the commissioner and the chairs of the senate Finance Committee and the house of representatives Ways and Means Committee promptly upon execution and delivery thereof. The instrument or agreement shall require, as a condition of the sale, conveyance, or other transfer, that the authority notify the commissioner promptly upon the issuance, sale, and delivery thereof if any bonds are issued that are secured by any of the tobacco settlement revenues and provide the commissioner with all information on the distribution of the bond proceeds. The commissioner shall submit a report to the chairs of the senate Finance Committee and the house of representatives Ways and Means Committee that includes all of the information provided to the commissioner by the authority under this subdivision. The instrument or agreement may include an irrevocable direction to pay all or a specified portion of the tobacco settlement revenues directly to or upon the order of the authority, or to any escrow agent or any trustee under an indenture or other agreement securing any bonds issued or related bond facilities made under this section. Upon execution and delivery of the sale agreement as provided in this section, the sale, conveyance, or other transfer of the right to receive the tobacco settlement revenues, shall, for all purposes, be a true sale and absolute conveyance of all right, title, and interest therein and not as a pledge or other security interest for any borrowing, valid, binding, and enforceable in accordance with the terms thereof and such instrument or agreements and any related instrument, agreement, or other arrangement, including any pledge, grant of security interest, or other encumbrance made by authority to secure any bonds issued by the authority, and shall not be subject to disavowal, disaffirmance, cancellation, or avoidance by reason of insolvency of any party, lack of consideration, or any other fact, occurrence, or rule of law. On and after the effective date of the sale of any portion, including all of the tobacco settlement revenues, the state shall have no right, title, or interest in or to the portion of the tobacco settlement revenues sold, and the portion of the tobacco settlement revenues sold shall be the property of the authority, and shall be received, held, and disbursed by the authority in a trust fund outside the state treasury. Any portions of the tobacco settlement revenues sold to the authority and held in trust may be invested in investments and deposit accounts or certificates, and with security, agreed upon with the bondholders or a trustee for the bondholders.

The procedures and requirements set forth in this subdivision shall be the sole procedures and requirements applicable to the sale of the tobacco settlement revenues.

Subd. 3.

Establishment and powers of authority.

(a) The authority is hereby established as a body corporate and politic and a public instrumentality of, but having a legal existence independent and separate from the state and, accordingly, the assets, liabilities, and funds of the authority shall be neither consolidated nor commingled with those of the state treasury, provided that the assets, liabilities, and funds of the authority shall be held by a duly designated agent or fiduciary of the authority. If the authority does not designate a fiduciary or an agent for the purposes of this subdivision, the assets and funds of the authority shall be held in the state treasury. The authority and its corporate existence shall continue until 12 months after all its liabilities have been met or otherwise discharged. Upon the termination of the existence of the authority, all of its rights and property shall pass to and be vested in the state. The authority shall be established for the express limited public purposes set forth in this section, and no part of the net earnings of the authority shall inure to any private individual.

(b) The authority shall be governed by a three-member board consisting of the commissioner, the commissioner of revenue, and the commissioner of health. The commissioner shall serve as the chair and chief executive officer of the authority, who shall sign instruments or agreements authorized by this section on behalf of the authority; provided that the authority may by resolution authorize a member other than the commissioner to sign authorized instruments or agreements. The authority may elect other officers as necessary from its members. The authority may also appoint a nonremunerated chief financial officer who may or may not be a member of the authority in order to provide financial analysis and advice regarding any transaction of the authority. The powers of the authority shall be subject to the terms, conditions, and limitations contained within this section, and any applicable covenants or agreements of the authority in any indenture or other agreement relating to any then outstanding bonds or related bond facilities. The authority may enter into contracts regarding any matter connected with any corporate purpose within the objects and purposes of this section. The members of the authority shall receive no salary or other compensation, either direct or indirect, for serving as members of the authority, other than reimbursement for actual and necessary expenses incurred in the performance of such person's duties. Notwithstanding the foregoing, the authority shall not be authorized to make any covenant, pledge, promise, or agreement purporting to bind the state with respect to tobacco settlement revenues, except as otherwise specifically authorized by this section.

(c) A majority of the authority, excluding vacancies, constitutes a quorum to conduct its business, to exercise its powers, and for all other purposes.

(d) The authority may conduct its business as provided under section 13D.015, including teleconference calls or interactive video, that allows for an interaction between members. If a meeting is conducted under this paragraph, a specific location must be available for the public to attend the meeting and at least one member must be present at that location.

(e) The authority may not file a voluntary petition under or be or become a debtor or bankrupt under the federal bankruptcy code or any other federal or state bankruptcy, insolvency, or moratorium law or statute as may, from time to time, be in effect, and neither any public officer nor any organization, entity, or other person shall authorize the authority to be or become a debtor or bankrupt under the federal bankruptcy code or any other federal or state bankruptcy, insolvency, or moratorium law or statute, as may, from time to time be in effect.

(f) The authority may not guarantee the debts of another.

(g) The commissioner shall provide administrative services to the authority.

(h) The authority may accept appropriations, gifts, grants, bequests, and devises, and use or dispose of them for its purposes. All gifts, grants, bequests, and revenues from those sources are appropriated to the authority.

(i) Proceeds of the authority's bonds, notes, and other obligations; amounts granted or appropriated to the authority for bond debt service reserves; income from investment; money in the funds; and all revenues from fees and charges of the authority including rentals, royalties, dividends, or other proceeds are annually appropriated to the authority for the accomplishment of its corporate purposes and must be spent, administered, and accounted for in accordance with the applicable provisions of all bond and note resolutions, indentures, and other instruments, contracts, and agreements of the authority. Notwithstanding section 16A.28, these appropriations are available until expended.

Subd. 4.

Certain powers of the authority.

The authority shall have the power to:

(1) sue and be sued;

(2) have a seal and alter the same at pleasure;

(3) make and alter bylaws for its organization and internal management;

(4) make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this subdivision, including without limitation the purchase from the state of all or a portion of the right to receive tobacco settlement revenues, and request the attorney general to commence any action to protect or enforce any right conferred upon it by any law, contract, or other agreement;

(5) retain or contract for the services of underwriters, financial advisors, accountants or other consultants or agents;

(6) pay its operating expenses and its financing costs, including its reasonable costs of issuance and sale of bonds and those of the attorney general, if any;

(7) borrow money in its name, issue negotiable bonds as named by the authority, and provide for the rights of the holders thereof as otherwise provided in this section;

(8) procure insurance against any loss in connection with its activities, properties, and assets in such amount and from such insurers as it deems desirable;

(9) invest any funds or other moneys under its custody and control in investment securities or under any related bond facility;

(10) as security for the payment of the principal of and interest on any bonds issued by it under this section and any agreement made in connection therewith and for its obligations under any related bond facility, pledge all or any part of the tobacco settlement revenues;

(11) establish and create debt service reserve funds and capitalized interest accounts and deposit therein proceeds of bonds in such amount or amounts as shall be provided by the resolutions or trust indentures for the bonds; and

(12) do any and all things necessary and proper to carry out its purposes and exercise the powers expressly given and granted in this section.

Subd. 5.

Bonds of the authority.

(a) The authority shall have power and is hereby authorized to issue bonds from time to time in one or more series, in an aggregate principal amount no greater than $900,000,000, excluding refunding bonds sold and issued under this section, to provide funds not to exceed $640,000,000 and subject to the limitation in section 16A.97, for the purchase of all or a portion of the tobacco settlement revenues pursuant to subdivision 2, and also to provide sufficient funds for the establishment of a debt service reserve fund, and the payment or provision for capitalized interest and financing costs, including, without limitation, the cost of any related credit facility.

The issuance of bonds shall be authorized by a resolution of the authority, adopted by a majority of the members of the authority without further authorization or approval. The issue of the bonds of the authority shall be special limited revenue obligations payable from and secured by a pledge of the pledged tobacco revenues, those proceeds of bonds deposited in a debt service reserve fund for the benefit of bondholders, and earnings on funds of the authority, upon terms and conditions as specified by the authority in the resolution under which the bonds are issued or in a related trust indenture.

The authority shall have the power and is hereby authorized from time to time to issue bonds, whenever it deems refunding expedient, to refund any outstanding bonds by the issuance of new bonds, provided that the refunding bonds mature not more than 30 years after the date of issuance as may be determined by the authority. The refunding bonds may be exchanged for the bonds to be refunded or sold and the proceeds applied to the purchase, redemption, or payment of the bonds to be refunded.

(b) The bonds of each issue shall be dated, shall bear interest, which may be includable in or excludable from the gross income of the owners for federal income tax purposes, at fixed or variable rates, payable at or prior to maturity, and shall mature at such time or times, not more than 30 years after the date of issuance, as may be determined by the authority, and may be made redeemable before maturity, at the option of the authority, at such price or prices and under such terms and conditions as may be fixed by the authority. The principal and interest of the bonds may be made payable in any lawful medium. The resolution of the authority approving the issuance of the bonds shall determine the form of the bonds and the manner of execution of the bonds and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest thereof, which may be at any bank or trust company within or outside the state. If any officer whose signature or a facsimile thereof appears on any bonds shall cease to be an officer before the delivery of the bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if the officer had remained in office until such delivery.

(c) The authority may sell such bonds at either public or private sale upon terms as the commissioner shall determine are not inconsistent with this section and the bonds may be sold at any price or percentage of par value. Any bid received may be rejected by the authority. The proceeds of the bonds shall be disbursed for the purposes for which the bonds were issued under the restrictions as the sale agreement and the resolution authorizing the issuance of the bonds or the related trust indenture may provide. The bonds shall be issued upon approval of the authority and without any other approvals, filings, proceedings, or the happening of any other conditions or things other than the approvals, findings, proceedings, conditions, and things that are specified and required by this section.

(d) Any pledge made by the authority shall be valid and binding at the time the pledge is made. The assets, property, revenues, reserves, or earnings so pledged shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether such parties have notice thereof. Notwithstanding any other provision of law to the contrary, neither the resolution nor any indenture or other instrument by which a pledge is created or by which the authority's interest in pledged assets, property, revenues, reserves, or earnings is assigned need be filed, perfected, or recorded in any public records in order to protect the pledge or perfect the lien as against third parties, except that a copy shall be filed in the records of the authority.

(e) Whether or not the bonds of the authority are of such form and character as to be negotiable instruments under the terms of the Uniform Commercial Code, the bonds are hereby made negotiable instruments for all purposes, subject only to the provisions of the bonds for registration.

(f) At the sole discretion of the authority, any bonds issued by the authority and any related bond facility made under the provisions of this section shall be secured by a resolution or trust indenture by and between the authority and the indenture trustee, which may be any trust company or bank having the powers of a trust company, whether located within or outside the state. The trust indenture or resolution providing for the issuance of the bonds shall, without limitation: (1) provide for the creation and maintenance of reserves as the authority shall determine to be proper; (2) include covenants setting forth the duties of the authority in relation to the bonds, the income of the authority, the related sale agreement, and the related tobacco settlement revenues; (3) contain provisions relating to the transfer of the residual interest upon receipt of the tobacco settlement revenues; (4) contain provisions respecting the custody, safeguarding, and application of all moneys and securities; (5) contain provisions for protecting and enforcing against the authority or the state the rights and remedies pursuant thereto and to the sale agreement of the owners of the bonds and any provider of a related bond facility as may be reasonable and proper and not in violation of law; and (6) contain other provisions as the authority may deem reasonable and proper for priorities and subordination among the owners of the bonds and providers of related bond facilities. Any reference in this section to a resolution of the authority shall include any trust indenture authorized thereby.

(g) The net proceeds of any sale, conveyance, or transfer by the state of tobacco settlement revenues shall be deposited into the authority's general tobacco subaccount. The authority shall transfer all moneys in the general tobacco subaccount to the commissioner for deposit in the tobacco settlement bond proceeds fund. Any residual amount in tobacco settlement revenues shall be deposited in the tobacco settlement residual subaccount. The balance in the tobacco residual subaccount shall be transferred to the commissioner for deposit in the general fund, as provided in subdivision 12, paragraph (b).

(h) The authority may enter into, amend, or terminate, as it determines to be necessary or appropriate, any related bond facility (1) to facilitate the issuance, sale, resale, purchase, repurchase, or payment of bonds, interest rate savings or market diversification, or the making or performance of swap contracts, including without limitation bond insurance, letters of credit and liquidity facilities, or (2) to attempt to manage or hedge risk or achieve a desirable effective interest rate or cash flow. Such facility shall be made upon the terms and conditions established by the authority, including without limitation provisions as to security, default, termination, payment, remedy, jurisdiction, and consent to service of process.

(i) The authority may enter into, amend, or terminate, as it deems to be necessary or appropriate, any related bond facility to place the obligations or investments of the authority, as represented by the bonds or the investment of reserves securing the bonds or related bond facilities or other tobacco settlement revenues or its other assets, in whole or in part, on the interest rate, cash flow, or other basis approved by the authority, which facility may include without limitation contracts commonly known as interest rate swap agreements, forward purchase contracts, or guaranteed investment contracts and futures or contracts providing for payments based on levels of, or changes in, interest rates. These contracts or arrangements may be entered into by the authority in connection with, or incidental to, entering into, or maintaining any (1) agreement that secures bonds of the authority or (2) investment or contract providing for investment of reserves or similar facility guaranteeing an investment rate for a period of years not to exceed the underlying term of the bonds. The determination by the authority that a related bond facility or the amendment or termination thereof is necessary or appropriate as aforesaid shall be conclusive. Any related bond facility may contain such provisions as to security, default, termination, payment, remedy, jurisdiction, and consent to service of process, and other terms and conditions as determined by the authority, after giving due consideration to the creditworthiness of the counterparty or other obligated party, including any rating by any nationally recognized rating agency, and any other criteria as may be appropriate.

(j) Bonds or any related bond facility may contain a recital that they are issued or executed, respectively, pursuant to this section, which recital shall be conclusive evidence of their validity, respectively, and the regularity of the proceedings relating thereto.

(k) No member or officer of the authority or any person executing the bonds is liable personally on the bonds or is subject to any personal liability or accountability by reason of their issuance, or is liable for any other debt or obligation of the authority.

(l) Information in any register of ownership of bonds or certificates is nonpublic data under section 13.02, subdivision 9, or private data on individuals under section 13.02, subdivision 12. The information is open only to the subject of it, except as disclosure:

(1) is necessary for the registrar, the commissioner, or the legislative auditor to perform a duty;

(2) is requested by an authorized representative of the commissioner of revenue, the attorney general, or the United States commissioner of internal revenue to determine the application of a tax; or

(3) is required under section 13.03, subdivision 4.

(m) The bonds of the authority are not subject to chapter 16C.

(n) The commissioner and any other member of the authority charged with the responsibility of issuing bonds for or on behalf of the authority, may enter into written agreements or contracts relating to the continuing disclosure of information necessary to comply with, or facilitate the issuance of bonds in accordance with, federal securities laws, rules, and regulations, including Securities and Exchange Commission rules and regulations, in Code of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants with purchasers and holders of bonds set forth in the order or resolution authorizing the issuance of the bonds, or a separate document authorized by the order or resolution.

Subd. 6.

State not liable on bonds or related bond facilities.

The state is not liable on bonds of the authority, and no bond or related bond facility shall constitute an indebtedness or an obligation of the state or any subdivision thereof, within the meaning of any constitutional or statutory limitation or provision or a charge against the general credit or taxing powers, if any, of any of them but shall be payable solely from pledged tobacco revenues. No owner of any bond or provider of any related bond facility shall have the right to compel the exercise of the taxing power of the state to pay any principal installment of, redemption premium, if any, or interest on the bonds or to make any payment due under any related bond facility. The bonds must contain on their face a statement to the effect of this subdivision.

Subd. 7.

Agreement with the state.

(a) The state pledges and agrees with the authority, and the owners of the bonds of the authority in which the authority has included such pledge and agreement, that the state shall: (1) irrevocably direct the transfer of all pledged tobacco revenues received by the state under and in accordance with the settlement agreement directly to the authority or its assignee; (2) diligently enforce its right to collect all moneys due from the participating manufacturers under the settlement agreement, in each case in the manner and to the extent deemed necessary in the judgment of and consistent with the discretion of the attorney general of the state, provided, however, that the sale agreement shall provide (i) that the remedies available to the authority and the bondholders for any breach of the pledges and agreements of the state set forth in this clause shall be limited to injunctive relief, and (ii) that the state shall be deemed to have diligently enforced this subdivision so long as there has been no judicial determination by a court of competent jurisdiction in this state, in an action commenced by a participating tobacco manufacturer, that the state has failed to diligently enforce this subdivision; (3) in any materially adverse way, neither amend the settlement agreement or take any other action that would (i) impair the authority's right to receive pledged tobacco revenues, or (ii) limit or alter the rights hereby vested in the authority to fulfill the terms of its agreements with the bondholders, or (iii) impair the rights and remedies of the bondholders or the security for such bonds until such bonds, together with the interest thereon and all costs and expenses in connection with any action or proceedings by or on behalf of the bondholders, are fully paid and discharged, provided, that nothing herein shall be construed to preclude the state's regulation of smoking, smoking cessation activities and laws, and taxation and regulation of the sale of cigarettes or the like or to restrict the right of the state to amend, modify, repeal, or otherwise alter statutes imposing or relating to the taxes; and (4) not amend, supersede, or repeal the settlement agreement or this section in any way that would materially adversely affect the amount of any payment to, or the rights to such payments of, the authority or the bondholders. This pledge and agreement may be included in the sale agreement and the authority may include this pledge and agreement in any contract with the bondholders of the authority.

(b) The provisions of this section, the bonds issued pursuant to this section, and the pledges and agreements by the state and the authority to the bondholders shall not be interpreted or construed to limit or impair the authority or discretion of the attorney general to administer and enforce provisions of the settlement agreement or to direct, control, and settle any litigation or arbitration proceeding arising from or relating to the settlement agreement.

Subd. 8.

Enforcement of contract.

The provisions of this section and of any resolution or proceeding authorizing the issuance of bonds or a related bond facility shall constitute a contract with the holders of the bonds or the related bond facility, and the provisions thereof shall be enforceable either by mandamus or other proceeding in any Minnesota court of competent jurisdiction in Ramsey County to enforce and compel the performance of all duties required by this section and by any resolution authorizing the issuance of bonds a related bond facility adopted in response hereto.

Subd. 9.

Bonds as legal investments.

Any of the following entities may legally invest any sinking funds, money, or other funds belonging to them or under their control in any bonds issued under this section: (1) the state, the investment board, public officers, municipal corporations, political subdivisions, and public bodies; (2) banks and bankers, savings and loan associations, credit unions, trust companies, savings banks and institutions, investment companies, insurance companies, insurance associations, and other persons carrying on a banking or insurance business; and (3) personal representatives, guardians, trustees, and other fiduciaries.

Subd. 10.

Exemption from taxation.

It is hereby determined that the creation of the authority and the carrying out of its corporate purposes are in all respects for the benefit of the people of the state and are public purposes. Accordingly, the property of the authority, its income, and its operations shall be exempt from taxation. The authority shall not be required to pay any fees, taxes, or assessments of any kind, whether state or local, including, but not limited to, fees, taxes, ad valorem taxes on real property, sales taxes or other taxes, upon or with respect to any property owned by it or under its jurisdiction, control, or supervision, or upon the uses thereof, or upon or with respect to its activities or operations in furtherance of the powers conferred upon it by this section.

Subd. 11.

Report; audit.

The authority shall report to the legislature and the governor by the January 15 following the end of each fiscal year. The report must include a complete operating and financial statement covering the authority's operations during the fiscal year, including amounts of income from all sources. Books and records of the authority are subject to audit by the legislative auditor in the manner prescribed for state agencies.

Subd. 12.

Tobacco settlement recovery account.

(a) The authority shall establish the tobacco settlement recovery account, which shall consist of three subaccounts: (1) the general tobacco subaccount, (2) the tobacco settlement revenues subaccount, and (3) the tobacco settlement residual subaccount. The authority shall deposit all moneys paid pursuant to the settlement agreement, and any other moneys as provided by law into the several subaccounts of the tobacco settlement recovery account. Money shall be deposited into the tobacco settlement revenues subaccount and the tobacco settlement residual subaccount as provided by the terms of this section, including any agreement between the state and the authority implementing the same. All other moneys available to be deposited into the tobacco settlement recovery account shall be deposited into the general tobacco subaccount. An investment made from moneys credited to a specific subaccount constitutes part of that subaccount and such subaccount shall be credited with all income from the investment of such moneys. The commissioner may invest the moneys in the several subaccounts of the tobacco settlement recovery account in the same manner, in the same types of investments, and subject to the same limitations provided in section 11A.24. Notwithstanding the foregoing, to the extent necessary to preserve the tax-exempt status of any bonds issued pursuant to this section, the interest on which is intended to be excludable from the gross income of the owners for federal income tax purposes, moneys on deposit in the tobacco settlement revenues subaccount and the tobacco settlement residual subaccount, may be invested in obligations the interest upon which is tax exempt under the provisions of Section 103 of the Internal Revenue Code of 1986, as now or hereafter amended, or any successor code or provision.

(b) Moneys on deposit in the tobacco settlement residual subaccount shall be transferred to the commissioner for deposit in the general fund.

(c) The amounts deposited into the tobacco settlement bond proceeds fund from the general tobacco subaccount and interest thereon are appropriated to the commissioner for payment of working capital, debt service on outstanding obligations of the general fund, the funding of debt service reserves for the bonds, each as permitted by state and federal law, nonsalary expenses incurred in conjunction with the sale of the bonds and to supplement the tobacco settlement residual subaccount to pay for appropriated obligations of the tobacco settlement recovery account for state fiscal years 2012 and 2013. The commissioner may transfer the amounts available to reduce debt service on outstanding obligations of the general fund to the state bond fund under section 16A.641.

Subd. 13.

Supplemental nature of section; construction and purpose.

The powers conferred by this section shall be in addition to and supplemental to the powers conferred by any other law, general or special, and may be exercised notwithstanding the provisions of any other such law. Insofar as the provisions of this section are inconsistent with the provisions of any other law, general or special, the provisions of this section shall be controlling.

Subd. 14.

Severability.

If any provision of this section is held invalid, such provision shall be deemed to be excised and the invalidity thereof shall not affect any of the other provisions of this section. If the application of any provision of this section to any person or circumstance is held invalid, it shall not affect the application of such provision to such persons or circumstances other than those as to which it is held invalid.