Minnesota Legislature
SF 605
Conference Committee Report - 90th Legislature (2017 - 2018) Posted on 05/08/2017 10:21pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 605
1.3relating to the operation of state government; appropriating money for the
1.4legislature, governor's office, state auditor, attorney general, secretary of state,
1.5certain agencies, boards, councils, retirement funds; cancellation of certain
1.6appropriations; precluding agencies from transferring money to the governor's
1.7office for services; constraining the state auditor's use of funds for litigation
1.8expenses; requiring the state auditor to reimburse Wright, Becker, and Ramsey
1.9Counties for litigation expenses; limiting the state auditor's rates for 2017; requiring
1.10legislative approval for certain rules; making an ALJ decision the final decision
1.11in contested cases; creating an affirmative defense to certain rule violations;
1.12modifying the employee gainsharing program; requiring the Department of
1.13Administration to assess agencies for certain services; requiring the Office of
1.14MN.IT Services to report its project portfolio to the legislature; limiting severance
1.15pay for highly paid civil service employees; permitting state employees to opt out
1.16of insurance coverage under SEGIP; limiting public employer compensation under
1.17contracts to appropriated amounts; modifying uses for Support Our Troops account;
1.18requiring the Department of Veterans Affairs to develop a policy to grant free or
1.19reduced-cost burials in state veterans cemeteries to eligible indigent dependents
1.20of veterans; providing statutory appropriations to the Racing Commission in the
1.21event of a failure to pass a biennial appropriation; raising caps on Mighty Ducks
1.22grants; modifying expense calculation for the State Lottery; creating an advisory
1.23task force on fiscal notes; setting a deadline for consolidation of state information
1.24technology and for use of cloud-based solutions; creating a legislative commission
1.25to review consolidation of the state's information technology; establishing
1.26requirements for a grandfathered license for eyelash technicians; creating a working
1.27group for a rules status system; creating a grant program for election equipment;
1.28repealing the state auditor enterprise fund; repealing the campaign finance public
1.29subsidy program; repealing lottery payouts to people under 18;amending Minnesota
1.30Statutes 2016, sections 4.46; 6.481, subdivision 6; 6.56, subdivision 2; 6.581,
1.31subdivision 4; 14.18, subdivision 1; 14.27; 14.389, subdivision 3; 14.57; 16A.90;
1.3216B.055, subdivision 1; 16B.371; 16B.4805, subdivisions 2, 4; 16E.0466; 43A.17,
1.33subdivision 11; 43A.24, by adding a subdivision; 155A.23, subdivisions 10, 15,
1.3416, by adding a subdivision; 155A.29, subdivisions 1, 2; 155A.30, subdivisions
1.352, 5; 179A.20, by adding a subdivision; 190.19, subdivisions 2, 2a; 197.236,
1.36subdivision 9; 240.15, subdivision 6; 240.155, subdivision 1; 240A.09; 349A.08,
1.37subdivision 2; 349A.10, subdivision 6; Laws 2016, chapter 127, section 8;
1.38proposing coding for new law in Minnesota Statutes, chapters 6; 14; 16A; 240;
1.39repealing Minnesota Statutes 2016, sections 6.581, subdivision 1; 10A.30; 10A.31,
1.40subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b, 11; 10A.315; 10A.321;
1.4110A.322, subdivisions 1, 2, 4; 10A.323; 155A.23, subdivision 8; 349A.08,
1.42subdivision 3.
2.1May 8, 2017
2.2The Honorable Michelle L. Fischbach
2.3President of the Senate
2.4The Honorable Kurt L. Daudt
2.5Speaker of the House of Representatives
2.6We, the undersigned conferees for S.F. No. 605 report that we have agreed upon the
2.7items in dispute and recommend as follows:
2.8That the House recede from its amendments and that S.F. No. 605 be further amended
2.9as follows:
2.10Delete everything after the enacting clause and insert:
2.14The sums shown in the columns marked "Appropriations" are appropriated to the agencies
2.15and for the purposes specified in this article. The appropriations are from the general fund,
2.16or another named fund, and are available for the fiscal years indicated for each purpose.
2.17The figures "2018" and "2019" used in this article mean that the appropriations listed under
2.18them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
2.19"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
2.20is fiscal years 2018 and 2019.
2.31The amounts that may be spent for each
2.32purpose are specified in the following
2.33subdivisions.
3.6Appropriations provided by this subdivision
3.7may be used for designated staff to support
3.8the following offices and commissions: Office
3.9of the Legislative Auditor; Office of the
3.10Revisor of Statutes; Legislative Reference
3.11Library; Geographic Information Services;
3.12Legislative Budget Office; Legislative-Citizen
3.13Commission on Minnesota Resources;
3.14Legislative Commission on Pensions and
3.15Retirement; Legislative Energy Commission;
3.16and the Lessard-Sams Outdoor Heritage
3.17Council. The operation of all other joint
3.18offices and commissions must be supported
3.19by the central administrative staff of the
3.20Legislative Coordinating Commission. This
3.21appropriation may additionally be used for
3.22central administrative staff to support the work
3.23of the Economic Status of Women Advisory
3.24Committee.
3.25From its funds, $10,000 each year is for
3.26purposes of the legislators' forum, through
3.27which Minnesota legislators meet with
3.28counterparts from South Dakota, North
3.29Dakota, and Manitoba to discuss issues of
3.30mutual concern.
3.31Legislative Auditor. $6,744,000 the first year
3.32and $6,564,000 the second year are for the
3.33Office of the Legislative Auditor.
4.1Of these amounts, $130,000 the first year is
4.2for the transit financial activity reviews
4.3required by Minnesota Statutes, section 3.972,
4.4subdivision 4.
4.5No later than January 15, 2018, the legislative
4.6auditor must complete a review of the small
4.7business investment tax credit incentive
4.8established in Minnesota Statutes, section
4.9116J.8737. The review must follow the
4.10evaluation plan established for review of a
4.11general incentive program under Minnesota
4.12Statutes, section 3.9735, subdivision 4.
4.13No later than January 15, 2018, the legislative
4.14auditor must complete an assessment of the
4.15adequacy of the county audits performed by
4.16the state auditor in calendar year 2016. The
4.17standards for conducting the assessment must
4.18be identical to those described in the report of
4.19the state auditor dated March 2017, titled
4.20"Assessing the Adequacy of 2015 County
4.21Audits Performed by Private CPA Firms."
4.22Revisor of Statutes. $6,430,000 the first year
4.23and $6,093,000 the second year are for the
4.24Office of the Revisor of Statutes.
4.25Of these amounts, $250,000 in the first year
4.26is for upgrades and repairs to the information
4.27technology data center located in the State
4.28Office Building.
4.29Legislative Budget Office. $864,000 the first
4.30year and $818,000 the second year are for the
4.31Legislative Budget Office established in
4.32section 3.8853.
5.1Legislative Reference Library. $1,622,000
5.2the first year and $1,445,000 the second year
5.3are for the Legislative Reference Library.
5.4Of these amounts, $177,000 the first year is
5.5for the digital preservation of audio recordings
5.6documenting committee hearings and floor
5.7sessions of the legislature.
5.10(a) This appropriation is to fund the Office of
5.11the Governor and Lieutenant Governor.
5.12(b) Up to $19,000 the first year and up to
5.13$19,000 the second year are for necessary
5.14expenses in the normal performance of the
5.15Governor's and Lieutenant Governor's duties
5.16for which no other reimbursement is provided.
5.17(c) The following amounts that are
5.18appropriated from the general fund in fiscal
5.19years 2018 and 2019 to the specified agency
5.20and are budgeted to be transferred to the
5.21governor for personnel costs incurred by the
5.22Offices of the Governor and the Lieutenant
5.23Governor to support the agencies are canceled
5.24to the general fund and the base for each
5.25agency is reduced by the specified amount for
5.26fiscal years 2020 and 2021.
6.9(d) Appropriations provided by this section
6.10may not be used to support the hiring of
6.11additional personnel in the Office of the
6.12Governor, to support current personnel in the
6.13office assigned to oversee federal policy or
6.14federal government relations, or to maintain
6.15office space located in the District of
6.16Columbia.
6.19The amounts that may be spent for each
6.20purpose are specified in the following
6.21subdivisions.
6.23Notwithstanding Minnesota Statutes, section
6.246.581, subdivision 3, or any other law to the
6.25contrary, the rates included in the state
6.26auditor's schedule of charges for examinations
6.27conducted in fiscal years 2018 and 2019 must
6.28be no greater than the rates included in the
6.29schedule of charges established for
6.30examinations conducted in calendar year 2016.
7.11The amounts that may be spent for each
7.12purpose are specified in the following
7.13subdivisions.
8.1The base for fiscal year 2020 is $5,419,000
8.2and the base for fiscal year 2021 is
8.3$5,419,000.
8.4The amounts that may be spent for each
8.5purpose are specified in the following
8.6subdivisions.
8.21The amounts that may be spent for each
8.22purpose are specified in the following
8.23subdivisions.
8.25These amounts are for the cost of considering
8.26complaints filed under Minnesota Statutes,
8.27section 211B.32. These amounts may be used
8.28in either year of the biennium.
8.30These amounts are for the cost of considering
8.31data practices complaints filed under
8.32Minnesota Statutes, section 13.085. These
9.1amounts may be used in either year of the
9.2biennium.
9.6The amounts that may be spent for each
9.7purpose are specified in the following
9.8subdivisions.
9.9The state chief information officer must
9.10prioritize use of appropriations provided by
9.11this section to enhance cybersecurity across
9.12state government.
9.14The commissioner of management and budget
9.15is authorized to provide cash flow assistance
9.16of up to $110,000,000 from the special
9.17revenue fund or other statutory general funds
9.18as defined in Minnesota Statutes, section
9.1916A.671, subdivision 3, paragraph (a), to the
9.20Office of MN.IT Services for the purpose of
9.21managing revenue and expenditure
9.22differences. These funds shall be repaid with
9.23interest by the end of the fiscal year 2019
9.24closing period.
9.25During the biennium ending June 30, 2019,
9.26the Office of MN.IT Services must not charge
9.27fees to a public noncommercial educational
9.28television broadcast station eligible for funding
9.29under Minnesota Statutes, chapter 129D, for
9.30access to the state broadcast infrastructure. If
9.31the access fees not charged to public
9.32noncommercial educational television
9.33broadcast stations total more than $400,000
10.1for the biennium, the office may charge for
10.2access fees in excess of these amounts.
10.7The amounts that may be spent for each
10.8purpose are specified in the following
10.9subdivisions.
10.11This appropriation includes funds for
10.12information technology project services and
10.13support subject to the provisions of Minnesota
10.14Statutes, section 16E.0466. Any ongoing
10.15information technology costs must be
10.16incorporated into the service level agreement
10.17and must be paid to the Office of MN.IT
10.18Services by the commissioner of
10.19administration under the rates and mechanism
10.20specified in that agreement.
10.21Appropriations provided by this section may
10.22not be used to fund continuous improvement
10.23initiatives, including the Office of Continuous
10.24Improvement (LEAN).
10.25Council on Developmental Disabilities.
10.26$74,000 the first year and $74,000 the second
10.27year are for the Council on Developmental
10.28Disabilities.
10.29Olmstead Plan. $148,000 each year is for the
10.30Olmstead plan.
10.31Materials Management. $2,139,000 each
10.32year is for materials management.
11.1Plant Management. $390,000 each year is
11.2for plant management.
11.3$7,500,000 the first year of the balance in the
11.4facility repair and replacement account in the
11.5special revenue fund is canceled to the general
11.6fund. These amounts are in addition to
11.7amounts transferred under Minnesota Statutes,
11.8section 16B.24, subdivision 5, paragraph (d).
11.9Real Estate and Construction Services.
11.10$2,198,000 each year is for real estate and
11.11construction services.
11.12Enterprise Real Property. $601,000 each
11.13year is for enterprise real property.
11.14State Agency Accommodation
11.15Reimbursement. $200,000 the first year and
11.16$200,000 the second year are credited to the
11.17accommodation account established in
11.18Minnesota Statutes, section 16B.4805.
11.19Community Services. $1,263,000 each year
11.20is for community services.
11.21(a) $192,000 the first year and $192,000 the
11.22second year are for the state archaeologist.
11.23(b) $468,000 the first year and $468,000 the
11.24second year are for information policy
11.25analysis.
11.26(c) $487,000 the first year and $487,000 the
11.27second year are for the state demographer.
11.28(d) $116,000 the first year and $116,000 the
11.29second year are for the Office of Grants
11.30Management.
12.1Executive Leadership/Partnerships.
12.2$528,000 each year is for executive
12.3leadership/partnerships.
12.4School Trust Lands Director. $185,000 each
12.5year is for school trust lands director.
12.6Financial Management and Reporting.
12.7$706,000 each year is for financial
12.8management and reporting.
12.9Human Resources. $375,000 each year is for
12.10human resources.
12.12In-Lieu of Rent. $8,158,000 the first year and
12.13$8,158,000 the second year are for space costs
12.14of the legislature and veterans organizations,
12.15ceremonial space, and statutorily free space.
12.16Public Television. (a) $1,550,000 the first
12.17year and $1,550,000 the second year are for
12.18matching grants for public television.
12.19(b) $250,000 the first year and $250,000 the
12.20second year are for public television
12.21equipment grants under Minnesota Statutes,
12.22section 129D.13.
12.23(c) The commissioner of administration must
12.24consider the recommendations of the
12.25Minnesota Public Television Association
12.26before allocating the amounts appropriated in
12.27paragraphs (a) and (b) for equipment or
12.28matching grants.
12.29Public Radio. (a) $392,000 the first year and
12.30$392,000 the second year are for community
12.31service grants to public educational radio
12.32stations. This appropriation may be used to
13.1disseminate emergency information in foreign
13.2languages.
13.3(b) $117,000 the first year and $117,000 the
13.4second year are for equipment grants to public
13.5educational radio stations. This appropriation
13.6may be used for the repair, rental, and
13.7purchase of equipment including equipment
13.8under $500.
13.9(c) $310,000 the first year and $310,000 the
13.10second year are for equipment grants to
13.11Minnesota Public Radio, Inc., including
13.12upgrades to Minnesota's Emergency Alert and
13.13AMBER Alert Systems.
13.14(d) $400,000 the first year is for a grant to
13.15Minnesota Public Radio, Inc. for upgrades to
13.16Minnesota's Emergency Alert and AMBER
13.17Alert Systems.
13.18(e) The appropriations in paragraphs (a) to (d)
13.19may not be used for indirect costs claimed by
13.20an institution or governing body.
13.21(f) The commissioner of administration must
13.22consider the recommendations of the
13.23Association of Minnesota Public Educational
13.24Radio Stations before awarding grants under
13.25Minnesota Statutes, section 129D.14, using
13.26the appropriations in paragraphs (a) and (b).
13.27No grantee is eligible for a grant unless they
13.28are a member of the Association of Minnesota
13.29Public Educational Radio Stations on or before
13.30July 1, 2017.
13.31(g) Any unencumbered balance remaining the
13.32first year for grants to public television or
13.33public radio stations does not cancel and is
13.34available for the second year.
14.6The amounts that may be spent for each
14.7purpose are specified in the following
14.8subdivisions.
14.9This appropriation includes funds for
14.10information technology project services and
14.11support subject to the provisions of Minnesota
14.12Statutes, section 16E.0466. Any ongoing
14.13information technology costs must be
14.14incorporated into the service level agreement
14.15and must be paid to the Office of MN.IT
14.16Services by the commissioner of management
14.17and budget under the rates and mechanism
14.18specified in that agreement.
14.26Appropriations provided by this section or
14.27transferred to the commissioner from another
14.28agency may not be used to support a statewide
14.29executive recruiting program.
14.32No later than June 30, 2018, the commissioner
14.33must credit at least $1,000,000 to the general
15.1fund based on savings realized through
15.2implementation of the employee gainsharing
15.3program required by Minnesota Statutes,
15.4section 16A.90. If a credit of at least this
15.5amount has not been made to the general fund
15.6as of that date, the appropriation provided in
15.7this subdivision for fiscal year 2019 is reduced
15.8in an amount equal to the difference between
15.9the amount actually credited to the general
15.10fund and the total credit required by this
15.11paragraph.
15.21Notwithstanding the appropriations provided
15.22by this section, the amounts allocated for tax
15.23compliance activities of the department must
15.24be no less than the amounts allocated for those
15.25activities during fiscal year 2017, and the
15.26commissioner must prioritize processing
15.27personal income tax returns, taxpayer fraud
15.28prevention, and assuring that taxpayer refunds
15.29are not delayed when determining spending
15.30plans for each of the activities in this section.
15.31This appropriation includes funds for
15.32information technology project services and
15.33support subject to the provisions of Minnesota
15.34Statutes, section 16E.0466. Any ongoing
15.35information technology costs must be
16.1incorporated into the service level agreement
16.2and must be paid to the Office of MN.IT
16.3Services by the commissioner of revenue
16.4under the rates and mechanism specified in
16.5that agreement.
16.31(1) $15,000 from the general fund in the first
16.32year is for preparing and submitting a
16.33supplemental 2017 tax incidence report
16.34meeting the requirements of Minnesota
16.35Statutes, section 270C.13, subdivision 1, as
16.36amended by this act. The supplemental report
17.1must be completed and submitted no later than
17.2January 2, 2018.
17.3(2) $160,000 from the general fund in the first
17.4year is for administration of a first-time home
17.5buyer savings account program. This
17.6appropriation is canceled to the general fund
17.7if income tax provisions related to first-time
17.8home buyer savings accounts are not enacted
17.9by law at the 2017 regular or special
17.10legislative session.
17.22These appropriations are from the lawful
17.23gambling regulation account in the special
17.24revenue fund.
17.26These appropriations are from the racing and
17.27card playing regulation accounts in the special
17.28revenue fund.
17.30Notwithstanding Minnesota Statutes, section
17.31349A.10
, subdivision 3, the State Lottery's
17.32operating budget must not exceed $32,500,000
18.1in fiscal year 2018 and $33,000,000 in fiscal
18.2year 2019.
18.13The amounts that may be spent for each
18.14purpose are specified in the following
18.15subdivisions.
18.17$750,000 the first year and $750,000 the
18.18second year are for digital preservation and
18.19access, including planning and implementation
18.20of a program to preserve and make available
18.21resources related to Minnesota history. These
18.22are onetime appropriations.
18.29Any unencumbered balance remaining in this
18.30subdivision the first year does not cancel but
19.1is available for the second year of the
19.2biennium.
19.5The amounts that may be spent for each
19.6purpose are specified in the following
19.7subdivisions.
19.11Any unencumbered balance remaining in this
19.12section the first year does not cancel, but is
19.13available for the second year.
19.14Money appropriated in this section and
19.15distributed as grants may only be spent on
19.16projects located in Minnesota. A recipient of
19.17a grant funded by an appropriation in this
19.18section must not use more than five percent
19.19of the total grant for costs related to travel
19.20outside the state of Minnesota.
19.22(a) $325,000 each year is for the Healthy
19.23Eating, Here at Home program under
19.24Minnesota Statutes, section 138.912. No more
19.25than three percent of the appropriation may
19.26be used for the nonprofit administration of this
19.27program.
19.28(b) $250,000 each year is for grants to the
19.29Veterans Defense Project. Grants must be used
19.30to support, through education and outreach,
19.31military veterans who are involved with the
20.1criminal justice system. These are onetime
20.2appropriations.
20.10The executive director must report quarterly
20.11to the chairs and ranking minority members
20.12of the committees in the house of
20.13representatives and senate with jurisdiction
20.14over state government finance on the number
20.15of inspections conducted by license type in
20.16the past quarter, number and percent of total
20.17salons and schools inspected within the last
20.18year, total number of licensees by type, and
20.19the number of inspectors employed by the
20.20board. The first report must be submitted by
20.21July 15, 2017.
20.32(a) The appropriations in this section may only
20.33be spent with the approval of the governor
20.34after consultation with the Legislative
21.1Advisory Commission pursuant to Minnesota
21.2Statutes, section 3.30.
21.3(b) If an appropriation in this section for either
21.4year is insufficient, the appropriation for the
21.5other year is available for it.
21.6(c) If a contingent account appropriation is
21.7made in one fiscal year, it should be
21.8considered a biennial appropriation.
21.10These appropriations are to be spent by the
21.11commissioner of management and budget
21.12according to Minnesota Statutes, section
21.133.736, subdivision 7. If the appropriation for
21.14either year is insufficient, the appropriation
21.15for the other year is available for it.
21.19The amounts that may be spent for each
21.20purpose are specified in the following
21.21subdivisions.
21.24Under Minnesota Statutes, sections 3A.03,
21.25subdivision 2; 3A.04, subdivisions 3 and 4;
21.26and 3A.115.
21.27If an appropriation in this section for either
21.28year is insufficient, the appropriation for the
21.29other year is available for it.
21.31For transfer to the judges retirement fund
21.32under Minnesota Statutes, section 490.123.
22.1$6,000,000 each fiscal year is included in the
22.2base for fiscal years 2020 and 2021. This
22.3transfer continues each fiscal year until the
22.4judges retirement plan reaches 100 percent
22.5funding as determined by an actuarial
22.6valuation prepared according to Minnesota
22.7Statutes, section 356.214.
22.10General employees retirement plan of the
22.11Public Employees Retirement Association
22.12relating to the merged former MERF division.
22.13State payments from the general fund to the
22.14Public Employees Retirement Association on
22.15behalf of the former MERF division account
22.16are $6,000,000 on September 15, 2017, and
22.17$6,000,000 on September 15, 2018.
22.18These amounts are estimated to be needed
22.19under Minnesota Statutes, section 353.505.
22.22The amounts estimated to be needed are as
22.23follows:
22.24Special Direct State Aid. $27,331,000 the
22.25first year and $27,331,000 the second year are
22.26for special direct state aid authorized under
22.27Minnesota Statutes, section 354.436.
22.28Special Direct State Matching Aid.
22.29$2,500,000 the first year and $2,500,000 the
22.30second year are for special direct state
22.31matching aid authorized under Minnesota
22.32Statutes, section 354.435.
23.3The amounts estimated to be needed for
23.4special direct state aid to the first class city
23.5teachers retirement fund association authorized
23.6under Minnesota Statutes, section354A.12 ,
23.7subdivisions 3a and 3c.
23.10The amounts that may be spent for each
23.11purpose are specified in the following
23.12subdivisions.
23.14Of the funds transferred to maintenance of
23.15training facilities in Laws 2015, chapter 77,
23.16article 1, section 36, subdivision 4, $2,000,000
23.17in fiscal year 2017 may be transferred to the
23.18enlistment incentives appropriation to address
23.19a projected fiscal year 2017 deficit in the
23.20enlistment incentives program.
23.23The appropriations in this subdivision are
23.24available until expended, except that any
23.25unspent amounts allocated to a program
23.26otherwise supported by this appropriation are
23.27canceled to the general fund upon receipt of
23.28federal funds in the same amount to support
23.29administration of that program.
23.30If appropriations for either year of the
23.31biennium are insufficient, the appropriation
23.32from the other year is available. The
24.1appropriations for enlistment incentives are
24.2available until June 30, 2021.
24.5The amounts that may be spent for each
24.6purpose are specified in the following
24.7subdivisions.
24.9Veterans Service Organizations. $353,000
24.10each year is for grants to the following
24.11congressionally chartered veterans service
24.12organizations as designated by the
24.13commissioner: Disabled American Veterans,
24.14Military Order of the Purple Heart, the
24.15American Legion, Veterans of Foreign Wars,
24.16Vietnam Veterans of America, AMVETS, and
24.17Paralyzed Veterans of America. This funding
24.18must be allocated in direct proportion to the
24.19funding currently being provided by the
24.20commissioner to these organizations.
24.21Minnesota Assistance Council for Veterans.
24.22$750,000 each year is for a grant to the
24.23Minnesota Assistance Council for Veterans
24.24to provide assistance throughout Minnesota
24.25to veterans and their families who are
24.26homeless or in danger of homelessness,
24.27including assistance with the following:
24.28(1) utilities;
24.29(2) employment; and
24.30(3) legal issues.
24.31The assistance authorized under this paragraph
24.32must be made only to veterans who have
24.33resided in Minnesota for 30 days prior to
25.1application for assistance and according to
25.2other guidelines established by the
25.3commissioner. In order to avoid duplication
25.4of services, the commissioner must ensure that
25.5this assistance is coordinated with all other
25.6available programs for veterans.
25.7Honor Guards. $200,000 each year is for
25.8compensation for honor guards at the funerals
25.9of veterans under Minnesota Statutes, section
25.10197.231.
25.11Minnesota GI Bill. $200,000 each year is for
25.12the costs of administering the Minnesota GI
25.13Bill postsecondary educational benefits,
25.14on-the-job training, and apprenticeship
25.15program under Minnesota Statutes, section
25.16197.791.
25.17Gold Star Program. $100,000 each year is
25.18for administering the Gold Star Program for
25.19surviving family members of deceased
25.20veterans.
25.21County Veterans Service Office. $1,100,000
25.22each year is for funding the County Veterans
25.23Service Office grant program under Minnesota
25.24Statutes, section 197.608.
25.25Veterans Journey Home. $350,000 each year
25.26is for grants to the veterans Journey Home
25.27program. Grants must support the development
25.28of new or rehabilitated affordable housing
25.29dedicated for low-to-moderate income
25.30veterans and their families. These are onetime
25.31appropriations.
25.33The general fund appropriations made to the
25.34department may be transferred to a veterans
26.1homes special revenue account in the special
26.2revenue fund in the same manner as other
26.3receipts are deposited according to Minnesota
26.4Statutes, section 198.34, and are appropriated
26.5to the department for the operation of veterans
26.6homes facilities and programs.
26.7No later than January 15, 2018, the
26.8commissioner must submit a report to the
26.9legislative committees with jurisdiction over
26.10veterans affairs and state government finance
26.11on reserve amounts maintained in the veterans
26.12homes special revenue account. The report
26.13must detail current and historical amounts
26.14maintained as a reserve, and uses of those
26.15amounts. The report must also include data on
26.16the utilization of existing veterans homes,
26.17including current and historical bed capacity
26.18and usage, staffing levels and staff vacancy
26.19rates, and staff-to-resident ratios.
26.20New Veterans Homes. $10,000,000 in the
26.21first year is for planning, design, construction,
26.22and operation of new veterans homes, and any
26.23other requirements necessary for federal
26.24approval of those homes. The commissioner
26.25must select locations for construction of new
26.26homes based on geographic need, consistent
26.27with any guidance or requirements provided
26.28by federal law. This is a onetime appropriation
26.29and is available until spent.
26.30Maximize Federal Reimbursements. The
26.31department will seek opportunities to
26.32maximize federal reimbursements of
26.33Medicare-eligible expenses and will provide
26.34annual reports to the commissioner of
26.35management and budget on the federal
27.1Medicare reimbursements received.
27.2Contingent upon future federal Medicare
27.3receipts, reductions to the homes' general fund
27.4appropriation may be made.
27.5 Sec. 39. PRESERVATION OF PROGRAMS AND SERVICES.
27.6To the extent that appropriations provided by this article are less than the amounts
27.7appropriated for fiscal year 2017, the affected constitutional office, agency, board, or
27.8commission must prioritize reductions to its central administration and general operations
27.9in absorbing those reductions. Costs for programs or services that are not provided a specific
27.10appropriation in this act must be funded through appropriations to the constitutional office,
27.11agency, board, or commission that are not designated for another purpose. Unless otherwise
27.12specified, reductions must not be made to programs or services of the constitutional office,
27.13agency, board, or commission that are provided directly to members of the public.
27.14 Sec. 40. APPROPRIATION CANCELLATIONS.
27.15All unspent funds estimated to be $7,166,000, as provided in Minnesota Statutes, section
27.16240A.085, under Laws 2016, chapter 189, article 13, section 56, are canceled to the general
27.17fund on June 30, 2017.
27.18 Sec. 41. SAVINGS FROM INSURANCE OPT OUT; APPROPRIATION
27.19REDUCTION FOR EXECUTIVE AGENCIES.
27.20The commissioner of management and budget must reduce general fund appropriations
27.21to executive agencies, including constitutional offices, for agency operations for the biennium
27.22ending June 30, 2019, by $4,394,000 due to savings from permitting employees to opt out
27.23of insurance coverage under the state employee group insurance coverage.
27.24If savings obtained through permitting employees to opt out of insurance coverage under
27.25the state employee group insurance coverage yield savings in nongeneral funds other than
27.26those established in the state constitution or protected by federal law, the commissioner of
27.27management and budget may transfer the amount of savings to the general fund. The amount
27.28transferred to the general fund from other funds reduces the required general fund reduction
27.29in this section. Reductions made in 2019 must be reflected as reductions in agency base
27.30budgets for fiscal years 2020 and 2021. The commissioner of management and budget must
27.31report to the chairs and ranking minority members of the committees in the senate Finance
28.1Committee and the house of representatives Ways and Means Committee regarding the
28.2amount of reductions in spending by each agency under this section.
28.3 Sec. 42. SAVINGS; APPROPRIATION REDUCTIONS FOR INFORMATION
28.4TECHNOLOGY CONSOLIDATION.
28.5(a) The commissioner of management and budget must reduce general fund appropriations
28.6to agencies subject to the executive branch information technology consolidation required
28.7by Laws 2011, First Special Session chapter 10, article 4, by at least $3,000,000 for the
28.8biennium ending June 30, 2019, to reflect savings on enterprise services personnel costs
28.9resulting from the consolidation.
28.10(b) If savings obtained through the completion of information technology consolidation
28.11yield savings in nongeneral funds other than those established in the state constitution or
28.12protected by federal law, the commissioner may transfer the amount of savings to the general
28.13fund. The amount transferred to the general fund from other funds reduces the required
28.14general fund reduction in this section. Reductions made in 2019 must be reflected as
28.15reductions in agency base budgets for fiscal years 2020 and 2021.
28.16 Sec. 43. REDUCTION IN PROFESSIONAL AND TECHNICAL SERVICES
28.17CONTRACT EXPENDITURES.
28.18During the biennium ending June 30, 2019, the commissioner of management and budget
28.19must reduce planned general fund expenditures by executive branch state agencies on
28.20contracts for professional or technical services by at least $2,255,000. The commissioner
28.21must allocate this reduction among each executive branch state agency. For purposes of
28.22this section, "professional or technical services" has the meaning given in Minnesota Statutes,
28.23section 16C.08, subdivision 1, and "executive branch state agency" has the meaning given
28.24in Minnesota Statutes, section 16A.011, subdivision 12a, and includes the Minnesota State
28.25Colleges and Universities.
28.26 Sec. 44. BASE BUDGET REPORT.
28.27No later than October 15, 2017, the commissioners of management and budget, revenue,
28.28and veterans affairs must each submit a report to the chairs and ranking minority members
28.29of the legislative committees with jurisdiction over state government finance that detail the
28.30agency's base budget, by fiscal year. At a minimum, the report must include:
28.31(1) a description of each appropriation rider enacted for the agency, and the year the
28.32rider was first enacted in a substantially similar form;
29.1(2) a description of the agency's use of appropriated funds that are not directed by a
29.2rider, including an itemization of programs that appeared in a rider in a prior biennium and
29.3continue to receive funding despite no longer appearing in a rider; and
29.4(3) an itemization of any appropriations provided to the agency under a provision of
29.5statute or the state constitution.
29.8 Section 1. [2.92] DISTRICTING PRINCIPLES.
29.9 Subdivision 1. Applicability. The principles in this section apply to legislative and
29.10congressional districts.
29.11 Subd. 2. Nesting. A representative district may not be divided in the formation of a
29.12senate district.
29.13 Subd. 3. Equal population. (a) Legislative districts must be substantially equal in
29.14population. The population of a legislative district must not deviate from the ideal by more
29.15than 0.5 percent, plus or minus.
29.16(b) Congressional districts must be as nearly equal in population as practicable.
29.17 Subd. 4. Contiguity; compactness. The districts must be composed of convenient
29.18contiguous territory. To the extent consistent with the other principles in this section, districts
29.19should be compact. Contiguity by water is sufficient if the water is not a serious obstacle
29.20to travel within the district. Point contiguity is not sufficient.
29.21 Subd. 5. Numbering. (a) Legislative districts must be numbered in a regular series,
29.22beginning with house district 1A in the northwest corner of the state and proceeding across
29.23the state from west to east, north to south, but bypassing the 11-county metropolitan area
29.24until the southeast corner has been reached; then to the 11-county metropolitan area. In a
29.25county that includes more than one whole senate district, the districts must be numbered
29.26consecutively.
29.27(b) Congressional district numbers must begin with district one in the southeast corner
29.28of the state and end with district eight in the northeast corner of the state.
29.29 Subd. 6. Minority representation. (a) The dilution of racial or ethnic minority voting
29.30strength is contrary to the laws of the United States and the state of Minnesota. These
29.31principles must not be construed to supersede any provision of the Voting Rights Act of
29.321965, as amended.
30.1(b) A redistricting plan must not have the intent or effect of dispersing or concentrating
30.2minority population in a manner that prevents minority communities from electing their
30.3candidates of choice.
30.4 Subd. 7. Minor civil divisions. (a) A county, city, or town must not be unduly divided
30.5unless required to meet equal population requirements or to form districts composed of
30.6convenient, contiguous territory.
30.7(b) A county, city, or town is not unduly divided in the formation of a legislative or
30.8congressional district if:
30.9(1) the division occurs because a portion of a city or town is noncontiguous with another
30.10portion of the same city or town; or
30.11(2) despite the division, the known population of any affected county, city, or town
30.12remains wholly located within a single district.
30.13 Subd. 8. Preserving communities of interest. (a) Districts should attempt to preserve
30.14identifiable communities of interest where that can be done in compliance with the principles
30.15under this section.
30.16(b) For purposes of this subdivision, "communities of interest" means recognizable areas
30.17with similarities of interests including but not limited to racial, ethnic, geographic, social,
30.18or cultural interests.
30.19 Subd. 9. Incumbents. The districts must not be drawn for the purpose of protecting or
30.20defeating an incumbent.
30.21 Subd. 10. Data to be used. (a) The geographic areas and population counts used in
30.22maps, tables, and legal descriptions of the districts must be those used by the Geographic
30.23Information Systems Office of the Legislative Coordinating Commission. The population
30.24counts shall be the block population counts provided to the state under Public Law 94-171
30.25after each decennial census, subject to correction of any errors acknowledged by the United
30.26States Census Bureau.
30.27(b) Nothing in this subdivision prohibits the use of additional data, as determined by the
30.28legislature.
30.29 Subd. 11. Consideration of plans. A redistricting plan must not be considered for
30.30adoption by the senate or house of representatives until a block equivalency file showing
30.31the district to which each census block has been assigned, in a form prescribed by the director
30.32of the Geographic Information Systems Office, has been filed with the director.
31.1 Subd. 12. Priority of principles. Where it is not possible to fully comply with the
31.2principles contained in subdivisions 2 to 9, a redistricting plan must give priority to those
31.3principles in the order in which they are listed, except to the extent that doing so would
31.4violate federal or state law.
31.5EFFECTIVE DATE. This section is effective the day following final enactment and
31.6applies to any plan for districts enacted or established for use on or after that date.
31.7 Sec. 2. Minnesota Statutes 2016, section 3.305, subdivision 1, is amended to read:
31.8 Subdivision 1. Definitions. (a) "Legislative commission" means a joint commission,
31.9committee, or other entity in the legislative branch composed exclusively of members of
31.10the senate and the house of representatives.
31.11(b) "Joint offices" means the Revisor of Statutes, Legislative Reference Library, the
31.12Office of Legislative Auditor, the Legislative Budget Office, and any other joint legislative
31.13service office.
31.14 Sec. 3. Minnesota Statutes 2016, section 3.855, subdivision 2, is amended to read:
31.15 Subd. 2. State employee negotiations. (a) The commissioner of management and budget
31.16shall regularly advise the commission on the progress of collective bargaining activities
31.17with state employees under the state Public Employment Labor Relations Act. During
31.18negotiations, the commission may make recommendations to the commissioner as it deems
31.19appropriate but no recommendation shall impose any obligation or grant any right or privilege
31.20to the parties.
31.21(b) The commissioner shall submit to the chair of the commission any negotiated
31.22collective bargaining agreements, arbitration awards, compensation plans, or salaries for
31.23legislative approval or disapproval. Negotiated agreements shall be submitted within five
31.24days of the date of approval by the commissioner or the date of approval by the affected
31.25state employees, whichever occurs later. Arbitration awards shall be submitted within five
31.26days of their receipt by the commissioner. If the commission disapproves a collective
31.27bargaining agreement, award, compensation plan, or salary, the commission shall specify
31.28in writing to the parties those portions with which it disagrees and its reasons. If the
31.29commission approves a collective bargaining agreement, award, compensation plan, or
31.30salary, it shall submit the matter to the legislature to be accepted or rejected under this
31.31section.
32.1(c) When the legislature is not in session, the commission may give interim approval to
32.2a negotiated collective bargaining agreement, salary, compensation plan, or arbitration
32.3award.When the legislature is not in session, failure of the commission to disapprove a
32.4collective bargaining agreement or arbitration award within 30 days constitutes approval.
32.5The commission shall submit the negotiated collective bargaining agreements, salaries,
32.6compensation plans, or arbitration awards for which it has provided approval to the entire
32.7legislature for ratification at a special legislative session called to consider them or at its
32.8next regular legislative session as provided in this section. Approval or disapproval by the
32.9commission is not binding on the legislature.
32.10(d) When the legislature is not in session, the proposed collective bargaining agreement,
32.11arbitration decision, salary, or compensation plan must be implemented upon its approval
32.12by the commission, and state employees covered by the proposed agreement or arbitration
32.13decision do not have the right to strike while the interim approval is in effect. Wages and
32.14economic fringe benefit increases provided for in the agreement or arbitration decision paid
32.15in accordance with the interim approval by the commission are not affected, but the wages
32.16or benefit increases must cease to be paid or provided effective upon the rejection of the
32.17agreement, arbitration decision, salary, or compensation plan, or upon adjournment of the
32.18legislature without acting on it.
32.19EFFECTIVE DATE.This section is effective the day following final enactment.
32.20 Sec. 4. Minnesota Statutes 2016, section 3.8843, subdivision 7, is amended to read:
32.21 Subd. 7. Expiration. This section expires June 30,2017 2019.
32.22EFFECTIVE DATE.This section is effective the day following final enactment.
32.23 Sec. 5. [3.8853] LEGISLATIVE BUDGET OFFICE.
32.24The Legislative Budget Office is established under control of the Legislative Coordinating
32.25Commission to provide the house of representatives and the senate with nonpartisan, accurate,
32.26and timely information on the fiscal impact of proposed legislation, without regard to political
32.27factors. The Legislative Coordinating Commission shall appoint a director who may hire
32.28staff necessary to do the work of the office. The director serves a term of six years and may
32.29not be removed during a term except for cause after a public hearing.
33.1 Sec. 6. Minnesota Statutes 2016, section 3.971, subdivision 2, is amended to read:
33.2 Subd. 2. Staff; compensation. (a) The legislative auditor shall establish a Financial
33.3Audits Division and a Program Evaluation Division to fulfill the duties prescribed in this
33.4section.
33.5 (b) Each division may be supervised by a deputy auditor, appointed by the legislative
33.6auditor, with the approval of the commission, for a term coterminous with the legislative
33.7auditor's term. The deputy auditors may be removed before the expiration of their terms
33.8only for cause. The legislative auditor and deputy auditors may each appoint a confidential
33.9secretary to serve at pleasure. The salaries and benefits of the legislative auditor, deputy
33.10auditors and confidential secretaries shall be determined by the compensation plan approved
33.11by the Legislative Coordinating Commission. The deputy auditors may perform and exercise
33.12the powers, duties and responsibilities imposed by law on the legislative auditor when
33.13authorized by the legislative auditor.
33.14(c) The legislative auditor must appoint a fiscal oversight officer with duties that include
33.15performing the review under section 3.972, subdivision 4.
33.16 (d) The deputy auditors and the confidential secretaries serve in the unclassified civil
33.17service, but the fiscal oversight officer and all other employees of the legislative auditor are
33.18in the classified civil service. Compensation for employees of the legislative auditor in the
33.19classified service shall be governed by a plan prepared by the legislative auditor and approved
33.20by the Legislative Coordinating Commission and the legislature under section3.855,
33.21subdivision 3 .
33.22 (e) While in office, a person appointed deputy for the Financial Audit Division must
33.23hold an active license as a certified public accountant.
33.24EFFECTIVE DATE.This section is effective the day following final enactment.
33.25 Sec. 7. Minnesota Statutes 2016, section 3.971, subdivision 6, is amended to read:
33.26 Subd. 6. Financial audits. The legislative auditor shall audit the financial statements
33.27of the state of Minnesota required by section16A.50 and, as resources permit, Minnesota
33.28State Colleges and Universities, the University of Minnesota, state agencies, departments,
33.29boards, commissions, offices, courts, and other organizations subject to audit by the
33.30legislative auditor, including, but not limited to, the State Agricultural Society, Agricultural
33.31Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical Society,
33.32ClearWay Minnesota, Minnesota Sports Facilities Authority, Metropolitan Council,
33.33Metropolitan Airports Commission, and Metropolitan Mosquito Control District. Financial
34.1audits must be conducted according to generally accepted government auditing standards.
34.2The legislative auditor shall see that all provisions of law respecting the appropriate and
34.3economic use of public funds and other public resources are complied with and may, as
34.4part of a financial audit or separately, investigate allegations of noncompliance.
34.5EFFECTIVE DATE.This section is effective the day following final enactment.
34.6 Sec. 8. Minnesota Statutes 2016, section 3.972, is amended by adding a subdivision to
34.7read:
34.8 Subd. 4. Certain transit financial activity reporting. (a) The legislative auditor must
34.9perform a transit financial activity review of financial information for the Metropolitan
34.10Council's Transportation Division and the joint powers board under section 297A.992.
34.11Within 14 days of the end of each fiscal quarter, the legislative auditor must submit the
34.12review to the Legislative Audit Commission and the chairs and ranking minority members
34.13of the legislative committees with jurisdiction over transportation policy and finance, finance,
34.14and ways and means.
34.15(b) At a minimum, each transit financial activity review must include:
34.16(1) a summary of monthly financial statements, including balance sheets and operating
34.17statements, that shows income, expenditures, and fund balance;
34.18(2) a list of any obligations and agreements entered into related to transit purposes,
34.19whether for capital or operating, including but not limited to bonds, notes, grants, and future
34.20funding commitments;
34.21(3) the amount of funds in clause (2) that has been committed;
34.22(4) independent analysis by the fiscal oversight officer of the fiscal viability of revenues
34.23and fund balance compared to expenditures, taking into account:
34.24(i) all expenditure commitments;
34.25(ii) cash flow;
34.26(iii) sufficiency of estimated funds; and
34.27(iv) financial solvency of anticipated transit projects; and
34.28(5) a notification concerning whether the requirements under paragraph (c) have been
34.29met.
35.1(c) The Metropolitan Council and the joint powers board under section 297A.992 must
35.2produce monthly financial statements as necessary for the review under paragraph (b),
35.3clause (1), and provide timely information as requested by the legislative auditor.
35.4EFFECTIVE DATE.This section is effective the day following final enactment.
35.5 Sec. 9. Minnesota Statutes 2016, section 3.98, subdivision 1, is amended to read:
35.6 Subdivision 1. Preparation. (a) Thehead or chief administrative officer of each
35.7department or agency of the state government, including the Supreme Court, Legislative
35.8Budget Office shall prepare a fiscal note at the request of the chair of the standing committee
35.9to which a bill has been referred, or the chair of the house of representatives Ways and
35.10Means Committee, or the chair of the senate Committee on Finance.
35.11(b) The head or chief administrative officer of each department or agency of state
35.12government, including the Supreme Court, shall supply information for fiscal notes upon
35.13request of the director of the Legislative Budget Office. The Legislative Budget Office may
35.14adopt standards and guidelines governing timing of responses to requests for information
35.15and governing access to data, consistent with laws governing access to data. Agencies must
35.16comply with these standards and guidelines.
35.17(c) For purposes of this subdivision, "Supreme Court" includes all agencies, committees,
35.18and commissions supervised or appointed by the state Supreme Court or the state court
35.19administrator.
35.20 Sec. 10. Minnesota Statutes 2016, section 3.98, subdivision 4, is amended to read:
35.21 Subd. 4. Uniform procedure. Thecommissioner of management and budget Legislative
35.22Budget Office shall prescribe a uniform procedure to govern the departments and agencies
35.23of the state in complying with the requirements of this section.
35.24 Sec. 11. Minnesota Statutes 2016, section 3.987, subdivision 1, is amended to read:
35.25 Subdivision 1. Local impact notes. Thecommissioner of management and budget
35.26Legislative Budget Office shall coordinate the development of a local impact note for any
35.27proposed legislationintroduced after June 30, 1997, upon request of the chair or the ranking
35.28minority member of either legislative Tax, Finance, or Ways and Means Committee. Upon
35.29receipt of a request to prepare a local impact note, thecommissioner office must notify the
35.30authors of the proposed legislation that the request has been made. The local impact note
35.31must be made available to the public upon request. If the action is among the exceptions
35.32listed in section3.988 , a local impact note need not be requested nor prepared. The
36.1commissioner office shall make a reasonable and timely estimate of the local fiscal impact
36.2on each type of political subdivision that would result from the proposed legislation. The
36.3commissioner of management and budget office may require any political subdivision or
36.4the commissioner of an administrative agency of the state to supply in a timely manner any
36.5information determined to be necessary to determine local fiscal impact. The political
36.6subdivision, its representative association, or commissioner shall convey the requested
36.7information to thecommissioner of management and budget office with a signed statement
36.8to the effect that the information is accurate and complete to the best of its ability. The
36.9political subdivision, its representative association, or commissioner, when requested, shall
36.10update its determination of local fiscal impact based on actual cost or revenue figures,
36.11improved estimates, or both. Upon completion of the note, thecommissioner office must
36.12provide a copy to the authors of the proposed legislation and to the chair and ranking minority
36.13member of each committee to which the proposed legislation is referred.
36.14 Sec. 12. Minnesota Statutes 2016, section 6.481, subdivision 3, is amended to read:
36.15 Subd. 3. CPA firm audit. A county audit performed by a CPA firm must meet the
36.16standards and be inthe a form required by the state auditor meeting recognized industry
36.17auditing standards. The state auditor may require additional information from the CPA firm
36.18if the state auditor determines that is in the public interest, but the state auditor must accept
36.19the audit unless the state auditor determinesit the audit or its form does not meet recognized
36.20industry auditing standardsor is not in the form required by the state auditor. The state
36.21auditor may make additional examinations as the auditor determines to be in the public
36.22interest.
36.23 Sec. 13. Minnesota Statutes 2016, section 6.481, subdivision 6, is amended to read:
36.24 Subd. 6. Payments to state auditor. A county audited by the state auditor must pay the
36.25state auditor for the costs and expenses of the audit. If the state auditor makes additional
36.26examinations of a county whose audit is performed by a CPA firm, the county must pay the
36.27auditor for the cost of these examinations. Payments must be deposited in thestate auditor
36.28enterprise general fund.
36.29 Sec. 14. Minnesota Statutes 2016, section 6.56, subdivision 2, is amended to read:
36.30 Subd. 2. Billings by state auditor. Upon the examination of the books, records, accounts,
36.31and affairs of any political subdivision, as provided by law, such political subdivision shall
36.32be liable to the state for the total cost and expenses of such examination, including the
36.33salaries paid to the examiners while actually engaged in making such examination. The
37.1state auditor may bill such political subdivision periodically for service rendered and the
37.2officials responsible for approving and paying claims are authorized to pay said bill promptly.
37.3Said payments shall be without prejudice to any defense against said claims that may exist
37.4or be asserted. Thestate auditor enterprise general fund shall be credited with all collections
37.5made for any such examinations, including interest payments made pursuant to subdivision
37.63.
37.7 Sec. 15. Minnesota Statutes 2016, section 6.581, subdivision 4, is amended to read:
37.8 Subd. 4. Reports to legislature. At least 30 days before implementing increased charges
37.9for examinations, the state auditor must report the proposed increases to the chairs and
37.10ranking minority members of the committees in the house of representatives and the senate
37.11with jurisdiction over the budget of the state auditor. By January 15 of each odd-numbered
37.12year, the state auditor must report to the chairs and ranking minority members of the
37.13legislative committees and divisions with primary jurisdiction over the budget of the state
37.14auditor a summary ofthe state auditor enterprise fund anticipated revenues, and expenditures
37.15related to examinations for the biennium ending June 30 of that year. The report must also
37.16include for the biennium the number of full-time equivalentspaid by the fund, by division,
37.17employed by the Office of the State Auditor, any audit rate changes stated as a percentage,
37.18the number of audit reports issued, and the number of counties audited.
37.19 Sec. 16. [6.92] LITIGATION EXPENSES.
37.20(a) Unless funds are otherwise expressly provided by law for this purpose, all costs
37.21incurred by the state auditor in preparing and asserting a civil claim or appeal, or in defending
37.22against a civil claim or appeal, related to the proper exercise of the auditor's constitutionally
37.23authorized core functions must be paid by the auditor's constitutional office division. Only
37.24allocations made to the constitutional office division may be used to pay these costs. The
37.25state auditor must report to the chairs and ranking minority members of the committees in
37.26the house of representatives and the senate with jurisdiction over the Office of the State
37.27Auditor by May 1, 2017, and January 1, 2018, and each January 1 thereafter, on the state
37.28auditor's litigation expenses. The report must list each lawsuit the state auditor has brought
37.29or is defending, the grounds for each suit, the litigation expenses incurred since the previous
37.30report under this section, and the projected expenses to complete the suit.
37.31(b) In complying with paragraph (a), the state auditor may not, directly or indirectly,
37.32decrease allocations previously made to, transfer funds from, or otherwise reduce services
37.33provided by any other division of the office.
38.1 Sec. 17. [15.0395] INTERAGENCY AGREEMENTS AND INTRA-AGENCY
38.2TRANSFERS.
38.3(a) The head of each agency must provide quarterly reports to the chairs and ranking
38.4minority members of the legislative committees with jurisdiction over the department or
38.5agency's budget on:
38.6(1) interagency agreements or service-level agreements and any renewals or extensions
38.7of existing interagency or service-level agreements with another agency if the cumulative
38.8value of those agreements is more than $50,000 in a single fiscal year; and
38.9(2) transfers of appropriations between accounts within or between agencies, if the
38.10cumulative value of the transfers is more than $50,000 in a single fiscal year.
38.11The report must include the statutory citation authorizing the agreement, transfer or dollar
38.12amount, purpose, and effective date of the agreement, the duration of the agreement, and a
38.13copy of the agreement.
38.14(b) As used in this section, "agency" includes the departments of the state listed in section
38.1515.01, a multimember state agency in the executive branch described in section 15.012,
38.16paragraph (a), the Office of MN.IT Services, and the Office of Higher Education.
38.17 Sec. 18. [16A.1282] TRANSFERS TO THE GOVERNOR.
38.18An agency shall not transfer money to the governor for services provided by the governor
38.19or to reimburse expenses incurred by the governor.
38.20 Sec. 19. Minnesota Statutes 2016, section 16A.90, is amended to read:
38.2116A.90 EMPLOYEE GAINSHARING SYSTEM.
38.22 Subdivision 1. Commissioner must establish program. (a) The commissioner shall
38.23establish a program to provide onetime bonus compensation to state employees for efforts
38.24made to reduce the costs of operating state government or for ways of providing better or
38.25more efficient state services. The commissioner may authorize an executive branch appointing
38.26authority to make a onetime award to an employee or group of employees whose suggestion
38.27or involvement in a project is determined by the commissioner to have resulted in documented
38.28cost-savings to the state. Before authorizing awards under this section, the commissioner
38.29shall establish guidelines for the program including but not limited to:
38.30(1) the maximum award is ten percent of the documented savings in the first fiscal year
38.31in which the savings are realized up to $50,000;
39.1(2) the award must be paid from the appropriation to which the savings accrued; and
39.2(3) employees whose primary job responsibility is to identify cost savings or ways of
39.3providing better or more efficient state services are generally not eligible for bonus
39.4compensation under this section except in extraordinary circumstances as defined by the
39.5commissioner.
39.6(b) The program required by this section must be in addition to any existing monetary
39.7or nonmonetary performance-based recognition programs for state employees, including
39.8achievement awards, continuous improvement awards, and general employee recognitions.
39.9 Subd. 2. Biannual legislative report. No later than August 1, 2017, and biannually
39.10thereafter, the commissioner must report to the chairs and ranking minority members of the
39.11house of representatives and senate committees with jurisdiction over Minnesota Management
39.12and Budget on the status of the program required by this section. The report must detail:
39.13(1) the specific program guidelines established by the commissioner as required by
39.14subdivision 1, if the guidelines have not been described in a previous report;
39.15(2) any proposed modifications to the established guidelines under consideration by the
39.16commissioner, including the reason for the proposed modifications;
39.17(3) the methods used by the commissioner to promote the program to state employees,
39.18if the methods have not been described in a previous report;
39.19(4) a summary of the results of the program that includes the following, categorized by
39.20agency:
39.21(i) the number of state employees whose suggestions or involvement in a project were
39.22considered for possible bonus compensation, and a description of each suggestion or project
39.23that was considered;
39.24(ii) the total amount of bonus compensation actually awarded, itemized by each suggestion
39.25or project that resulted in an award and the amount awarded for that suggestion or project;
39.26and
39.27(iii) the total amount of documented cost-savings that accrued to the agency as a result
39.28of each suggestion or project for which bonus compensation was granted; and
39.29(5) any recommendations for legislation that, in the judgment of the commissioner,
39.30would improve the effectiveness of the bonus compensation program established by this
39.31section or which would otherwise increase opportunities for state employees to actively
40.1participate in the development and implementation of strategies for reducing the costs of
40.2operating state government or for providing better or more efficient state services.
40.3 Sec. 20. Minnesota Statutes 2016, section 16B.04, subdivision 2, is amended to read:
40.4 Subd. 2. Powers and duties, generally. Subject to other provisions of this chapter, the
40.5commissioner is authorized to:
40.6 (1) supervise, control, review, and approve all state contracts and purchasing, provided
40.7that the commissioner may not approve a state contract with, or the purchase of goods from,
40.8a vendor who intentionally refuses to do business, or who intentionally discriminates in the
40.9basic terms, conditions, or performance of a contract or sale, on the basis of a person's
40.10national origin;
40.11 (2) provide agencies with supplies and equipment;
40.12 (3) investigate and study the management and organization of agencies, and reorganize
40.13them when necessary to ensure their effective and efficient operation;
40.14 (4) manage and control state property, real and personal;
40.15 (5) maintain and operate all state buildings, as described in section16B.24, subdivision
40.161 ;
40.17 (6) supervise, control, review, and approve all capital improvements to state buildings
40.18and the capitol building and grounds;
40.19 (7) provide central mail facilities;
40.20 (8) oversee publication of official documents and provide for their sale;
40.21 (9) manage and operate parking facilities for state employees and a central motor pool
40.22for travel on state business;
40.23 (10) provide rental space within the capitol complex for a private day care center for
40.24children of state employees. The commissioner shall contract for services as provided in
40.25this chapter;
40.26(11) settle state employee workers' compensation claims;
40.27(12) purchase, accept, transfer, warehouse, sell, distribute, or dispose of surplus property
40.28in accordance with state and federal rules and regulations. The commissioner may charge
40.29a fee to cover any expenses incurred in connection with any of these acts; and
40.30(13) provide and manage a central distribution center for federal and state surplus personal
40.31property, as defined in section16B.2975 , and may provide and manage a warehouse facility.
41.1 Sec. 21. Minnesota Statutes 2016, section 16B.055, subdivision 1, is amended to read:
41.2 Subdivision 1. Federal Assistive Technology Act. (a) The Department of Administration
41.3is designated as the lead agency to carry out all the responsibilities under the Assistive
41.4Technology Act of 1998, as provided by Public Law 108-364, as amended. The Minnesota
41.5Assistive Technology Advisory Council is established to fulfill the responsibilities required
41.6by the Assistive Technology Act, as provided by Public Law 108-364, as amended. Because
41.7the existence of this council is required by federal law, this council does not expire.
41.8 (b) Except as provided in paragraph (c), the governor shall appoint the membership of
41.9the council as required by the Assistive Technology Act of 1998, as provided by Public
41.10Law 108-364, as amended. After the governor has completed the appointments required by
41.11this subdivision, the commissioner of administration, or the commissioner's designee, shall
41.12convene the first meeting of the council following the appointments. Members shall serve
41.13two-year terms commencing July 1 of each odd-numbered year, and receive the compensation
41.14specified by the Assistive Technology Act of 1998, as provided by Public Law 108-364, as
41.15amended. The members of the council shall select their chair at the first meeting following
41.16their appointment.
41.17(c) After consulting with the appropriate commissioner, the commissioner of
41.18administration shall appoint a representative from:
41.19(1) State Services for the Blind who has assistive technology expertise;
41.20(2) vocational rehabilitation services who has assistive technology expertise;
41.21(3) the Workforce Development Council; and
41.22(4) the Department of Education who has assistive technology expertise.
41.23 Sec. 22. Minnesota Statutes 2016, section 16B.335, subdivision 1, is amended to read:
41.24 Subdivision 1. Construction and major remodeling. (a) The commissioner, or any
41.25other recipient to whom an appropriation is made to acquire or better public lands or buildings
41.26or other public improvements of a capital nature, must not prepare final plans and
41.27specifications for any construction, major remodeling, or land acquisition in anticipation
41.28of which the appropriation was made until the agency that will use the project has presented
41.29the program plan and cost estimates for all elements necessary to complete the project to
41.30the chair of the senate Finance Committee and the chair of the house of representatives
41.31Ways and Means Committee and the chairs have made their recommendations, and the
41.32chair and ranking minority member of the senate Capital Investment Committee and the
41.33chair and ranking minority member of the house of representatives Capital Investment
42.1Committee are notified. "Construction or major remodeling" means construction of a new
42.2building, a substantial addition to an existing building, or a substantial change to the interior
42.3configuration of an existing building. The presentation must note any significant changes
42.4in the work that will be done, or in its cost, since the appropriation for the project was
42.5enacted or from the predesign submittal. The program plans and estimates must be presented
42.6for review at least two weeks before a recommendation is needed. The recommendations
42.7are advisory only. Failure or refusal to make a recommendation is considered a negative
42.8recommendation.
42.9(b) The chairs and ranking minority members of the senate Finance and Capital
42.10Investment Committeesand, the house of representatives Capital Investment and Ways and
42.11Means Committees, and the house of representatives and senate budget committees or
42.12divisions with jurisdiction over the agency that will use the project must also be notified
42.13whenever there is a substantial change in a construction or major remodeling project, or in
42.14its cost. This notice must include the nature and reason for the change and the anticipated
42.15cost of the change. The notice must be given no later than ten days after signing a change
42.16order or other document authorizing a change in the project, or if there is not a change order
42.17or other document, no later than ten days after the project owner becomes aware of a
42.18substantial change in the project or its cost.
42.19(b) (c) Capital projects exempt from the requirements of this subdivision in paragraph
42.20(a) to seek recommendations before preparing final plans and specifications include
42.21demolition or decommissioning of state assets, hazardous material projects, utility
42.22infrastructure projects, environmental testing, parking lots, parking structures, park and ride
42.23facilities, bus rapid transit stations, light rail lines, passenger rail projects, exterior lighting,
42.24fencing, highway rest areas, truck stations, storage facilities not consisting primarily of
42.25offices or heated work areas, roads, bridges, trails, pathways, campgrounds, athletic fields,
42.26dams, floodwater retention systems, water access sites, harbors, sewer separation projects,
42.27water and wastewater facilities, port development projects for which the commissioner of
42.28transportation has entered into an assistance agreement under section457A.04 , ice centers,
42.29a local government project with a construction cost of less than $1,500,000, or any other
42.30capital project with a construction cost of less than $750,000. The requirements in paragraph
42.31(b) to give notice of changes applies to these projects.
42.32 Sec. 23. Minnesota Statutes 2016, section 16B.371, is amended to read:
42.3316B.371 ASSISTANCE TO SMALL AGENCIES.
43.1(a) The commissioner may provide administrative support services to small agencies.
43.2To promote efficiency and cost-effective use of state resources, and to improve financial
43.3controls, the commissioner may require a small agency to receive administrative support
43.4services through the Department of Administration or through another agency designated
43.5by the commissioner. Services subject to this section include finance, accounting, payroll,
43.6purchasing, human resources, and other services designated by the commissioner. The
43.7commissioner may determine what constitutes a small agency for purposes of this section.
43.8The commissioner, in consultation with the commissioner of management and budget and
43.9small agencies, shall evaluate small agencies' needs for administrative support services. If
43.10the commissioner provides administrative support services to a small agency, the
43.11commissioner must enter into a service level agreement with the agency, specifying the
43.12services to be provided and the costs and anticipated outcomes of the services.
43.13(b) The Minnesota Council on Latino Affairs, the Council for Minnesotans of African
43.14Heritage, the Council on Asian-Pacific Minnesotans, the Indian Affairs Council, and the
43.15Minnesota State Council on Disabilitymust may use the services specified in paragraph
43.16(a).
43.17 (c) The commissioner of administrationmay must assess agencies for services it provides
43.18under this section. The amounts assessed are appropriated to the commissioner.
43.19(d) For agencies covered in this section, the commissioner has the authority to require
43.20the agency to comply with applicable state finance, accounting, payroll, purchasing, and
43.21human resources policies. The agencies served retain the ownership and responsibility for
43.22spending decisions and for ongoing implementation of appropriate business operations.
43.23 Sec. 24. Minnesota Statutes 2016, section 16B.4805, subdivision 2, is amended to read:
43.24 Subd. 2. Reimbursement for making reasonable accommodation. The commissioner
43.25of administration shall reimburse state agencies for up to 50 percent of the cost of expenses
43.26incurred in making reasonable accommodations eligible for reimbursement for agency
43.27employees and applicants for employment to the extent that funds are available in the
43.28accommodation account established under subdivision 3 for this purpose.
43.29 Sec. 25. Minnesota Statutes 2016, section 16B.4805, subdivision 4, is amended to read:
43.30 Subd. 4. Administration costs. The commissioner may use up to15 percent $5,000 of
43.31the biennial appropriation for administration of this section.
44.1 Sec. 26. Minnesota Statutes 2016, section 16B.97, is amended by adding a subdivision to
44.2read:
44.3 Subd. 6. Commerce grants. The office must monitor grants made by the Department
44.4of Commerce.
44.5 Sec. 27. [16B.991] TERMINATION OF GRANT.
44.6Each grant agreement subject to sections 16B.97 and 16B.98 must provide that the
44.7agreement will immediately be terminated if:
44.8(1) the recipient is convicted of a criminal offense relating to a state grant agreement;
44.9or
44.10(2) the agency entering into the grant agreement or the commissioner of administration
44.11determines that the grant recipient is under investigation by a federal agency, a state agency,
44.12or a local law enforcement agency for matters relating to administration of a state grant.
44.13 Sec. 28. Minnesota Statutes 2016, section 16E.016, is amended to read:
44.1416E.016 RESPONSIBILITY FOR INFORMATION TECHNOLOGY SERVICES
44.15AND EQUIPMENT.
44.16(a) The chief information officer is responsible for providing or entering into managed
44.17services contracts for the provision, improvement, and development of the following
44.18information technology systems and services to state agencies:
44.19(1) state data centers;
44.20(2) mainframes including system software;
44.21(3) servers including system software;
44.22(4) desktops including system software;
44.23(5) laptop computers including system software;
44.24(6) a data network including system software;
44.25(7) database, electronic mail, office systems, reporting, and other standard software
44.26tools;
44.27(8) business application software and related technical support services;
44.28(9) help desk for the components listed in clauses (1) to (8);
45.1(10) maintenance, problem resolution, and break-fix for the components listed in clauses
45.2(1) to (8);
45.3(11) regular upgrades and replacement for the components listed in clauses (1) to (8);
45.4and
45.5(12) network-connected output devices.
45.6(b) All state agency employees whose work primarily involves functions specified in
45.7paragraph (a) are employees of the Office of MN.IT Services. This includes employees who
45.8directly perform the functions in paragraph (a), as well as employees whose work primarily
45.9involves managing, supervising, or providing administrative services or support services
45.10to employees who directly perform these functions. The chief information officer may assign
45.11employees of the office to perform work exclusively for another state agency.
45.12(c) Subject to sections16C.08 and
16C.09 , the chief information officer may allow a
45.13state agency to obtain services specified in paragraph (a) through a contract with an outside
45.14vendor when the chief information officer and the agency head agree that a contract would
45.15provide best value, as defined in section16C.02 , under the service-level agreement. The
45.16chief information officer must require that agency contracts with outside vendors ensure
45.17that systems and services are compatible with standards established by the Office of MN.IT
45.18Services.
45.19(d) The Minnesota State Retirement System, the Public Employees Retirement
45.20Association, the Teachers Retirement Association, and the State Board of Investment, the
45.21Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide
Radio
45.22Board are not state agencies for purposes of this section.
45.23(e) Effective upon certification by the chief information officer that the information
45.24technology systems and services provided under this section meet all professional and
45.25technical standards necessary for the entity to perform its functions, the following are state
45.26agencies for purposes of this section: the Campaign Finance and Public Disclosure Board,
45.27the State Lottery, and the Statewide Radio Board.
45.28 Sec. 29. Minnesota Statutes 2016, section 16E.0466, is amended to read:
45.2916E.0466 STATE AGENCY TECHNOLOGY PROJECTS.
45.30 Subdivision 1. Consultation required. (a) Every state agency with an information or
45.31telecommunications project must consult with the Office of MN.IT Services to determine
45.32the information technology cost of the project. Upon agreement between the commissioner
45.33of a particular agency and the chief information officer, the agency must transfer the
46.1information technology cost portion of the project to the Office of MN.IT Services. Service
46.2level agreements must document all project-related transfers under this section. Those
46.3agencies specified in section16E.016 , paragraph (d), are exempt from the requirements of
46.4this section.
46.5(b) Notwithstanding section16A.28, subdivision 3 , any unexpended operating balance
46.6appropriated to a state agency may be transferred to the information and telecommunications
46.7technology systems and services account for the information technology cost of a specific
46.8project, subject to the review of the Legislative Advisory Commission, under section16E.21,
46.9subdivision 3 .
46.10 Subd. 2. Legislative report. No later than October 1, 2017, and quarterly thereafter, the
46.11state chief information officer must submit a comprehensive project portfolio report to the
46.12chairs and ranking minority members of the house of representatives and senate committees
46.13with jurisdiction over state government finance on projects requiring consultation under
46.14subdivision 1. The report must itemize:
46.15(1) each project presented to the office for consultation in the time since the last report;
46.16(2) the information technology cost associated with the project, including the information
46.17technology cost as a percentage of the project's complete budget;
46.18(3) the status of the information technology components of the project's development;
46.19(4) the date the information technology components of the project are expected to be
46.20completed; and
46.21(5) the projected costs for ongoing support and maintenance of the information technology
46.22components after the project is complete.
46.23 Sec. 30. [43A.035] LIMIT ON NUMBER OF FULL-TIME EQUIVALENT
46.24EMPLOYEES; USE OF AGENCY SAVINGS.
46.25 Subdivision 1. Number of full-time equivalent employees limited. The total number
46.26of full-time equivalent employees employed in all executive branch agencies may not exceed
46.2731,691. The commissioner of management and budget may forbid an executive agency from
46.28hiring a new employee or from filling a vacancy as the commissioner determines necessary
46.29to ensure compliance with this section. Any reductions in staff should prioritize protecting
46.30client-facing health care workers, corrections officers, public safety workers, and mental
46.31health workers. As a means of achieving compliance with this subdivision, the commissioner
46.32may authorize an agency to provide an early retirement incentive to an executive branch
46.33employee, under which the state will continue to make the employer contribution for health
47.1insurance after the employee has terminated state service. The commissioner must prescribe
47.2eligibility requirements and the maximum duration of the payments.
47.3 Subd. 2. Use of savings resulting from vacant positions. To the extent that an executive
47.4branch agency accrues savings in personnel costs resulting from the departure of an agency
47.5employee or the maintenance of a vacant position, those savings may only be used to support
47.6a new employee in that position at an equal or lesser rate of compensation, and for an equal
47.7or lesser full-time equivalent work status. Savings accrued from departed personnel or
47.8maintenance of a vacant position may not be transferred or reallocated to another program
47.9or activity within the executive branch agency, or used to increase the number of full-time
47.10equivalent employees at the agency, unless expressly authorized by law.
47.11 Subd. 3. Definition. For purposes of this section, an "executive branch agency" does
47.12not include the Minnesota State Colleges and Universities or statewide pension plans.
47.13 Sec. 31. Minnesota Statutes 2016, section 43A.17, subdivision 11, is amended to read:
47.14 Subd. 11. Severance pay for certain employees. (a) For purposes of this subdivision,
47.15"highly compensated employee" means an employee of the state whose estimated annual
47.16compensation is greater than 60 percent of the governor's annual salary, and who is not
47.17covered by a collective bargaining agreement negotiated under chapter 179A or a
47.18compensation plan authorized under section 43A.18, subdivision 3a.
47.19(b) Severance pay for a highly compensated employee includes benefits or compensation
47.20with a quantifiable monetary value, that are provided for an employee upon termination of
47.21employment and are not part of the employee's annual wages and benefits and are not
47.22specifically excluded by this subdivision. Severance pay does not include payments for
47.23accumulated vacation, accumulated sick leave, and accumulated sick leave liquidated to
47.24cover the cost of group term insurance. Severance pay for a highly compensated employee
47.25does not include payments of periodic contributions by an employer toward premiums for
47.26group insurance policies. The severance pay for a highly compensated employee must be
47.27excluded from retirement deductions and from any calculations of retirement benefits.
47.28Severance pay for a highly compensated employee must be paid in a manner mutually
47.29agreeable to the employee and the employee's appointing authority over a period not to
47.30exceed five years from retirement or termination of employment. If a retired or terminated
47.31employee dies before all or a portion of the severance pay has been disbursed, the balance
47.32due must be paid to a named beneficiary or, lacking one, to the deceased's estate. Except
47.33as provided in paragraph (c), severance pay provided for a highly compensated employee
48.1leaving employment may not exceedan amount equivalent to six months of pay the lesser
48.2of:
48.3(1) six months pay; or
48.4(2) the highly compensated employee's regular rate of pay multiplied by 35 percent of
48.5the highly compensated employee's accumulated but unused sick leave hours.
48.6(c) Severance pay for a highly compensated employee may exceedan amount equivalent
48.7to six months of pay the limit prescribed in paragraph (b) if the severance pay is part of an
48.8early retirement incentive offer approved by the state and the same early retirement incentive
48.9offer is also made available to all other employees of the appointing authority who meet
48.10generally defined criteria relative to age or length of service.
48.11(d) An appointing authority may make severance payments to a highly compensated
48.12employee, up to the limits prescribed in this subdivision, only if doing so is authorized by
48.13a compensation plan under section 43A.18 that governs the employee, provided that the
48.14following highly compensated employees are not eligible for severance pay:
48.15 (1) a commissioner, deputy commissioner, or assistant commissioner of any state
48.16department or agency as listed in section 15.01 or 15.06, including the state chief information
48.17officer; and
48.18 (2) any unclassified employee who is also a public official, as defined in section 10A.01,
48.19subdivision 35.
48.20(e) Severance pay shall not be paid to a highly compensated employee who has been
48.21employed by the appointing authority for less than six months or who voluntarily terminates
48.22employment.
48.23EFFECTIVE DATE.This section is effective the day following final enactment.
48.24 Sec. 32. Minnesota Statutes 2016, section 43A.24, is amended by adding a subdivision to
48.25read:
48.26 Subd. 1a. Opt out. (a) An individual eligible for state-paid hospital, medical, and dental
48.27benefits under this section has the right to decline those benefits, provided the individual
48.28declining the benefits can prove health insurance coverage from another source. Any
48.29individual declining benefits must do so in writing, signed and dated, on a form provided
48.30by the commissioner.
48.31(b) The commissioner must create, and make available in hard copy and online a form
48.32for individuals to use in declining state-paid hospital, medical, and dental benefits. The form
49.1must, at a minimum, include notice to the declining individual of the next available
49.2opportunity and procedure to re-enroll in the benefits.
49.3(c) No later than January 15 of each year, the commissioner of management and budget
49.4must provide a report to the chairs and ranking minority members of the legislative
49.5committees with jurisdiction over state government finance on the number of employees
49.6choosing to opt-out of state employee group insurance coverage under this section. The
49.7report must provide itemized statistics, by agency, and include the total amount of savings
49.8accrued to each agency resulting from the opt-outs.
49.9 Sec. 33. [118A.09] ADDITIONAL LONG-TERM EQUITY INVESTMENT
49.10AUTHORITY.
49.11 Subdivision 1. Definition; qualifying government. "Qualifying government" means:
49.12(1) a county or statutory or home rule charter city with a population of more than 100,000;
49.13(2) a county or statutory or home rule charter city which had its most recently issued
49.14general obligation bonds rated in the highest category by a national bond rating agency; or
49.15(3) a self-insurance pool listed in section 471.982, subdivision 3.
49.16A county or statutory or home rule charter city with a population of 100,000 or less that is
49.17a qualifying government, but is subsequently rated less than the highest category by a
49.18national bond rating agency on a general obligation bond issue, may not invest additional
49.19funds under this section but may continue to manage funds previously invested under
49.20subdivision 2.
49.21 Subd. 2. Additional investment authority. Qualifying governments may invest the
49.22amount described in subdivision 3:
49.23(1) in index mutual funds based in the United States and indexed to a broad market
49.24United States equity index; or
49.25(2) with the Minnesota State Board of Investment subject to such terms and minimum
49.26amounts as may be adopted by the board. Index mutual fund investments must be made
49.27directly with the main sales office of the fund.
49.28 Subd. 3. Funds. (a) Qualifying governments may only invest under subdivision 2
49.29according to the limitations in this subdivision. A qualifying government under subdivision
49.301, clause (1) or (2), may only invest its funds that are held for long-term capital plans
49.31authorized by the city council or county board, or long-term obligations of the qualifying
49.32government. Long-term obligations of the qualifying government include long-term capital
50.1plan reserves, funds held to offset long-term environmental exposure, other postemployment
50.2benefit liabilities, compensated absences, and other long-term obligations established by
50.3applicable accounting standards.
50.4(b) Qualifying governments under subdivision 1, clause (1) or (2), may invest up to 15
50.5percent of the sum of:
50.6(1) unassigned cash;
50.7(2) cash equivalents;
50.8(3) deposits; and
50.9(4) investments.
50.10This calculation must be based on the qualifying government's most recent audited statement
50.11of net position, which must be compliant and audited pursuant to governmental accounting
50.12and auditing standards. Once the amount invested reaches 15 percent of the sum of
50.13unassigned cash, cash equivalents, deposits, and investments, no further funds may be
50.14invested under this section; however, a qualifying government may continue to manage the
50.15funds previously invested under this section even if the total amount subsequently exceeds
50.1615 percent of the sum of unassigned cash, cash equivalents, deposits, and investments.
50.17(c) A qualified government under subdivision 1, clause (3), may invest up to the lesser
50.18of:
50.19(1) 15 percent of the sum of its cash, cash equivalents, deposits, and investments; or
50.20(2) 25 percent of its net assets as reported on the pool's most recent audited statement
50.21of net position, which must be compliant and audited pursuant to governmental accounting
50.22and auditing standards.
50.23 Subd. 4. Approval. Before investing pursuant to this section, the governing body of the
50.24qualifying government must adopt a resolution that includes the following statements:
50.25(1) the governing body understands that investments under subdivision 2 have a risk of
50.26loss;
50.27(2) the governing body understands the type of funds that are being invested and the
50.28specific investment itself; and
50.29(3) the governing body certifies that all funds designated for investment through the
50.30State Board of Investment meet the requirements of this section and the policies and
50.31procedures established by the State Board of Investment.
51.1 Subd. 5. Public Employees Retirement Association to act as account administrator.
51.2A qualifying government exercising authority under this section to invest amounts with the
51.3State Board of Investment shall establish an account with the Public Employees Retirement
51.4Association (PERA), which shall act as the account administrator.
51.5 Subd. 6. Purpose of account. The account established under subdivision 5 may only
51.6be used for the purposes provided under subdivision 3. PERA may rely on representations
51.7made by the qualifying government in exercising its duties as account administrator and
51.8has no duty to further verify qualifications, use, or intended use of the funds that are invested
51.9or withdrawn.
51.10 Subd. 7. Account maintenance. (a) A qualifying government may establish an account
51.11to be held under the supervision of PERA for the purposes of investing funds with the State
51.12Board of Investment under subdivision 2. PERA shall establish a separate account for each
51.13qualifying government. PERA may charge participating qualifying governments a fee for
51.14reasonable administrative costs. The amount of any fee charged by PERA is annually
51.15appropriated to the association from the account. PERA may establish other reasonable
51.16terms and conditions for creation and maintenance of these accounts.
51.17(b) PERA must report to the qualifying government on the investment returns of invested
51.18funds and on all investment fees or costs incurred by the account.
51.19 Subd. 8. Investment. (a) The assets of an account shall be invested and held as required
51.20by this subdivision.
51.21(b) PERA must certify all money in the accounts for which it is account administrator
51.22to the State Board of Investment for investment under section 11A.14, subject to the policies
51.23and procedures established by the State Board of Investment. Investment earnings must be
51.24credited to the account of the individual qualifying government.
51.25(c) For accounts invested by the State Board of Investment, the investment restrictions
51.26shall be the same as those generally applicable to the State Board of Investment.
51.27(d) A qualifying government may provide investment direction to PERA, subject to the
51.28policies and procedures established by the State Board of Investment.
51.29 Subd. 9. Withdrawal of funds and termination of account. (a) A government may
51.30withdraw some or all of its money or terminate the account.
51.31(b) A government requesting withdrawal of money from an account created under this
51.32section must do so at a time and in the manner required by the executive director of PERA,
51.33subject to the policies and procedures established by the State Board of Investment.
52.1 Sec. 34. Minnesota Statutes 2016, section 138.69, is amended to read:
52.2138.69 PUBLIC AREAS OF THE CAPITOL.
52.3The Minnesota State Historical Society is designated the research agency and is
52.4responsible for the interpretation of the public areas for visitors to the Capitol. This involves
52.5conducting or approving public programs and tours in the Capitol and State Office Building,
52.6including exhibits held in the Capitol, providing informational services, acting as advisor
52.7on preservation, recommending appropriate custodial policies, and maintaining and repairing
52.8all works of art. Notwithstanding section 138.668, the society may not charge a fee for
52.9general tours at the Capitol but may charge fees for special programs other than general
52.10tours.
52.11 Sec. 35. Minnesota Statutes 2016, section 155A.30, subdivision 5, is amended to read:
52.12 Subd. 5. Conditions precedent to issuance. A license must not be issued unless the
52.13board first determines that the applicant has met the requirements in clauses (1) to(8) (9):
52.14(1) the applicant must have a sound financial condition with sufficient resources available
52.15to meet the school's financial obligations; to refund all tuition and other charges, within a
52.16reasonable period of time, in the event of dissolution of the school or in the event of any
52.17justifiable claims for refund against the school; to provide adequate service to its students
52.18and prospective students; and to maintain proper use and support of the school;
52.19(2) the applicant must have satisfactory training facilities with sufficient tools and
52.20equipment and the necessary number of work stations to adequately train the students
52.21currently enrolled, and those proposed to be enrolled;
52.22(3) the applicant must employ a sufficient number of qualified instructors trained by
52.23experience and education to give the training contemplated;
52.24(4) the premises and conditions under which the students work and study must be sanitary,
52.25healthful, and safe according to modern standards;
52.26(5) each occupational course or program of instruction or study must be of such quality
52.27and content as to provide education and training that will adequately prepare enrolled
52.28students for testing, licensing, and entry level positionsas a cosmetologist, esthetician, or
52.29nail technician;
52.30(6) the school must have coverage by professional liability insurance of at least $25,000
52.31per incident and an accumulation of $150,000 for each premium year;
52.32(7) the applicant shall provide evidence of the school's compliance with section176.182 ;
53.1(8) the applicant, except the state and its political subdivisions as described in section
53.2471.617 13.02, subdivision 1 11
, shall must file with the board a continuous corporate surety
53.3bond in the amount of no less than ten percent of the preceding year's gross income from
53.4student tuition, fees, and other required institutional charges, but in no event less than
53.5$10,000, conditioned upon the faithful performance of all contracts and agreements with
53.6students made by the applicant. New schools must base the bond amount on the anticipated
53.7gross income from student tuition, fees, and other required institutional charges for the third
53.8year of operation, but in no event less than $10,000. The applicant must compute the amount
53.9of the surety bond and verify that the amount of the surety bond complies with this
53.10subdivision. The bond shall run to thestate of Minnesota board and to any person who may
53.11have a cause of action against the applicant arising at any time after the bond is filed and
53.12before it is canceled for breach of any contract or agreement made by the applicant with
53.13any student.The aggregate liability of the surety for all breaches of the conditions of the
53.14bond shall not exceed $10,000. The surety of the bond may cancel it upon giving 60 days'
53.15notice in writing to the board and shall be relieved of liability for any breach of condition
53.16occurring after the effective date of cancellation; and
53.17(9) the applicant must, at all times during the term of the license, employ appoint a
53.18designatedlicensed school manager who maintains a cosmetology salon manager license.
53.19EFFECTIVE DATE.This section is effective the day following final enactment.
53.20 Sec. 36. Minnesota Statutes 2016, section 179A.20, is amended by adding a subdivision
53.21to read:
53.22 Subd. 2b. Limited by appropriation. The commissioner of management and budget
53.23may not contract to pay more to employees in compensation and benefits in a biennium
53.24than is permitted under an approved spending plan as provided in section 16A.14.
53.25 Sec. 37. Minnesota Statutes 2016, section 270C.13, subdivision 1, is amended to read:
53.26 Subdivision 1. Biennial report. The commissioner shall report to the legislature by
53.27March 1 of each odd-numbered year on the overall incidence of the income tax, sales and
53.28excise taxes, and property tax. The report shall present information on the distribution of
53.29the tax burden as follows: (1) for the overall income distribution, using a systemwide
53.30incidence measure such as the Suits index or other appropriate measures of equality and
53.31inequality; (2) by income classes, including at a minimum deciles of the income distribution;
53.32and (3) by other appropriate taxpayer characteristics. The report must also include information
53.33on the distribution of the burden of federal taxes borne by Minnesota residents.
54.1 Sec. 38. Minnesota Statutes 2016, section 353.27, subdivision 3c, is amended to read:
54.2 Subd. 3c. Former MERF members; member and employer contributions. (a) For
54.3the period July 1, 2015, through December 31, 2031, the member contributions for former
54.4members of the Minneapolis Employees Retirement Fund and by the former Minneapolis
54.5Employees Retirement Fund-covered employing units are governed by this subdivision.
54.6(b) The member contribution for a public employee who was a member of the former
54.7Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of
54.8the employee.
54.9(c) The employer regular contribution with respect to a public employee who was a
54.10member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75
54.11percent of the salary of the employee.
54.12(d)For calendar years 2015 and 2016, The annual employer supplemental contribution
54.13is the employing unit's share of $31,000,000.For calendar years 2017 through 2031, the
54.14employer supplemental contribution is the employing unit's share of $21,000,000.
54.15(e) Each employing unit's share under paragraph (d) is the amount determined from an
54.16allocation between each employing unit in the portion equal to the unit's employer
54.17supplemental contribution paid or payable under Minnesota Statutes 2012, section353.50 ,
54.18during calendar year 2014.
54.19(f) The employer supplemental contribution amount under paragraph (d) for calendar
54.20year 2015 must be invoiced by the executive director of the Public Employees Retirement
54.21Association by July 1, 2015. The calendar year 2015 payment is payable in a single amount
54.22on or before September 30, 2015. For subsequent calendar years, the employer supplemental
54.23contribution under paragraph (d) must be invoiced on January 31 of each year and is payable
54.24in two parts, with the first half payable on or before July 31 and with the second half payable
54.25on or before December 15. Late payments are payable with compound interest at the rate
54.26of 0.71 percent per month for each month or portion of a month that has elapsed after the
54.27due date.
54.28(g) The employer supplemental contribution under paragraph (d) terminates on December
54.2931, 2031.
54.30 Sec. 39. Minnesota Statutes 2016, section 353.505, is amended to read:
54.31353.505 STATE CONTRIBUTIONS; FORMER MERF DIVISION.
55.1(a) On September 15, 2015,and September 15, 2016, and annually thereafter, the state
55.2shall pay to the general employees retirement plan of the Public Employees Retirement
55.3Association, with respect to the former MERF division, $6,000,000.By September 15 of
55.4each year after 2016, the state shall pay to the general employees retirement plan
of the
55.5Public Employees Retirement Association, with respect to the former MERF division,
55.6$16,000,000.
55.7(b) State contributions under this section end on September 15, 2031.
55.8 Sec. 40. Minnesota Statutes 2016, section 471.6161, subdivision 8, is amended to read:
55.9 Subd. 8. School districts; group health insurance coverage. (a) Any entity providing
55.10group health insurance coverage to a school district must provide the school district with
55.11school district-specific nonidentifiable aggregate claims records for the most recent 24
55.12months within 30 days of the request.
55.13(b) School districts shall request proposals for group health insurance coverage as
55.14provided in subdivision 2 from a minimum of three potential sources of coverage.One of
55.15these requests must go to an administrator governed by chapter 43A. Entities referenced in
55.16subdivision 1 must respond to requests for proposals received directly from a school district.
55.17School districts that are self-insured must also follow these provisions, except as provided
55.18in paragraph (f). School districts must make requests for proposals at least 150 days prior
55.19to the expiration of the existing contract but not more frequently than once every 24 months.
55.20The request for proposals must include the most recently available 24 months of
55.21nonidentifiable aggregate claims data. The request for proposals must be publicly released
55.22at or prior to its release to potential sources of coverage.
55.23(c) School district contracts for group health insurance must not be longer thantwo four
55.24yearsunless the exclusive representative of the largest employment group and the school
55.25district agree otherwise.
55.26(d) All initial proposals shall be sealed upon receipt until they are all opened no less
55.27than 90 days prior to the plan's renewal date in the presence of up to three representatives
55.28selected by the exclusive representative of the largest group of employees. Section13.591,
55.29subdivision 3 , paragraph (b), applies to data in the proposals. The representatives of the
55.30exclusive representative must maintain the data according to this classification and are
55.31subject to the remedies and penalties under sections13.08 and
13.09 for a violation of this
55.32requirement.
56.1(e) A school district, in consultation with the same representatives referenced in paragraph
56.2(d), may continue to negotiate with any entity that submitted a proposal under paragraph
56.3(d) in order to reduce costs or improve services under the proposal. Following the negotiations
56.4any entity that submitted an initial proposal may submit a final proposal incorporating the
56.5negotiations, which is due no less than 75 days prior to the plan's renewal date. All the final
56.6proposals submitted must be opened at the same time in the presence of up to three
56.7representatives selected by the exclusive representative of the largest group of employees.
56.8Notwithstanding section13.591, subdivision 3 , paragraph (b), following the opening of the
56.9final proposals, all the proposals, including any made under paragraph (d), and other data
56.10submitted in connection with the proposals are public data. The school district may choose
56.11from any of the initial or final proposals without further negotiations and in accordance
56.12with subdivision 5, but not sooner than 15 days after the proposals become public data.
56.13(f) School districts that are self-insured shall follow all of the requirements of this section,
56.14except that:
56.15(1) their requests for proposals may be for third-party administrator services, where
56.16applicable;
56.17(2) these requests for proposals must be from a minimum of three different sources,
56.18which may include both entities referenced in subdivision 1 and providers of third-party
56.19administrator services;
56.20(3) for purposes of fulfilling the requirement to request a proposal for group insurance
56.21coverage from an administrator governed by chapter 43A, self-insured districts are
not
56.22required to include in the request for proposal the coverage to be provided;
56.23(4) a district that is self-insured on or before the date of enactment, or that is
self-insured
56.24with more than 1,000 insured lives, or a district in which the school board adopted
a motion
56.25on or before May 14, 2014, to approve a self-insured health care plan to be effective
July
56.261, 2014, may, but need not, request a proposal from an administrator governed by chapter
56.2743A;
56.28(5) (3) requests for proposals must be sent to providers no less than 90 days prior to the
56.29expiration of the existing contract; and
56.30(6) (4) proposals must be submitted at least 60 days prior to the plan's renewal date and
56.31all proposals shall be opened at the same time and in the presence of the exclusive
56.32representative, where applicable.
57.1(g) Nothing in this section shall restrict the authority granted to school district boards
57.2of education by section471.59 , except that districts will not be considered self-insured for
57.3purposes of this subdivision solely through participation in a joint powers arrangement.
57.4(h) An entity providing group health insurance to a school district under a multiyear
57.5contract must give notice of any rate or plan design changes applicable under the contract
57.6at least 90 days before the effective date of any change. The notice must be given to the
57.7school district and to the exclusive representatives of employees.
57.8(i) The exclusive representative of the largest group of employees shall comply with
57.9this subdivision and must not exercise any of their abilities under section 43A.316,
57.10subdivision 5, notwithstanding anything contained in that section, or any other law to the
57.11contrary.
57.12EFFECTIVE DATE.This section is effective the day following final enactment.
57.13 Sec. 41. Minnesota Statutes 2016, section 471.617, subdivision 2, is amended to read:
57.14 Subd. 2. Jointly. Any two or more statutory or home rule charter cities, counties, school
57.15districts, or instrumentalities thereof which together have more than 100 employees may
57.16jointly self-insure for any employee health benefits including long-term disability, but not
57.17for employee life benefits, subject to the same requirements as an individual self-insurer
57.18under subdivision 1. Self-insurance pools under this section are subject to section62L.045 .
57.19A self-insurance pool established and operated by one or more service cooperatives governed
57.20by section123A.21 to provide coverage described in this subdivision qualifies under this
57.21subdivision, but the individual school district members of such a pool shall not be considered
57.22to be self-insured for purposes of section
471.6161, subdivision 8, paragraph (f). The
57.23commissioner of commerce may adopt rules pursuant to chapter 14, providing standards or
57.24guidelines for the operation and administration of self-insurance pools.
57.25EFFECTIVE DATE.This section is effective the day following final enactment.
57.26 Sec. 42. Minnesota Statutes 2016, section 508.12, subdivision 1, is amended to read:
57.27 Subdivision 1. Examiner and deputy examiner. The judges of the district court shall
57.28appoint a competent attorney in each county within their respective districts to be an examiner
57.29of titles and legal adviser to the registrar in said county, to which examiner all applications
57.30to register title to land are referred without further order, and may appoint attorneys to serve
57.31as deputy examiners who shall act in the name of the examiner and under the examiner's
57.32supervision and control, and the deputy's acts shall be the acts of the examiners. The examiner
58.1of titles and deputy examiners shall hold office subject to the will and discretion of the
58.2district court by whom appointed. The examiner's compensation and that of the examiner's
58.3deputies shall be fixed and determined by the court and paid in the same manner as the
58.4compensation of other county employees is paid except that in all counties having fewer
58.5than 75,000 inhabitants, and in Stearns, Dakota, Scott, Wright, Sherburne, and Olmsted
58.6Counties the fees and compensation of the examiners for services as legal adviser to the
58.7registrar shall be determined by the judges of the district court and paid in the same manner
58.8as the compensation of other county employees is paid, but in every other instance shall be
58.9paid by the person applying to have the person's title registered or for other action or relief
58.10which requires the services, certification or approval of the examiner.
58.11 Sec. 43. Minnesota Statutes 2016, section 518A.79, is amended by adding a subdivision
58.12to read:
58.13 Subd. 3a. Open meetings. Except as otherwise provided in this section, the task force
58.14is subject to chapter 13D. A meeting of the task force occurs when a quorum is present and
58.15the members receive information, discuss, or take action on any matter relating to the duties
58.16of the task force. The task force may conduct meetings as provided in section 13D.015 or
58.1713D.02. The task force may conduct meetings at any location in the state that is appropriate
58.18for the purposes of the task force as long as the location is open and accessible to the public.
58.19For legislative members of the task force, enforcement of this subdivision is governed by
58.20section 3.055, subdivision 2. For nonlegislative members of the task force, enforcement of
58.21this subdivision is governed by section 13D.06, subdivisions 1 and 2.
58.22EFFECTIVE DATE.This section is effective January 1, 2018.
58.23 Sec. 44. Laws 2016, chapter 127, section 8, is amended to read:
58.24 Sec. 8. EFFECTIVE DATE; APPLICATION.
58.25Sections 1 to 7 are effective the day following final enactment. With respect to eyelash
58.26technicians, the Board of Cosmetologist Examiners must not enforce sections 1 to 7 until
58.27July 1, 2017 February 1, 2018. Any educational or training requirements developed by the
58.28board regarding eyelash technicians must be 14 hours.
59.1 Sec. 45. COMMISSIONER OF REVENUE TO DETERMINE ADEQUACY OF
59.2CURRENT RULES AND VALUATION PRACTICES FOR STATE-ASSESSED
59.3PIPELINES.
59.4The commissioner of revenue must review all current rules and practices relating to the
59.5valuation of pipeline companies that are assessed by the state. The commissioner must
59.6determine whether current rules and practices provide accurate estimates of market value.
59.7By February 1, 2018, the commissioner must prepare testimony for the house of
59.8representatives and senate committees having jurisdiction over property taxes recommending
59.9changes to the rules and practices to provide more accurate assessments and reduce the
59.10number and amount of judgments against the state and counties for state-assessed pipeline
59.11property. Costs associated with conducting the review required by this section must be paid
59.12from existing funds appropriated to the commissioner by law.
59.13 Sec. 46. OFFICE OF MN.IT SERVICES; PERFORMANCE OUTCOMES
59.14REQUIRED.
59.15 Subdivision 1. Completion of agency consolidation. No later than December 31, 2018,
59.16the state chief information officer must complete the executive branch information technology
59.17consolidation required by Laws 2011, First Special Session chapter 10, article 4. The head
59.18of any state agency subject to consolidation must assist the state chief information officer
59.19as necessary to implement the requirements of this subdivision.
59.20 Subd. 2. Information technology efficiencies and solutions. No later than December
59.2131, 2018, the state chief information officer shall:
59.22(1) host at least 25 percent of all state agency servers on a public cloud solution;
59.23(2) store at least 35 percent of all state agency data on a public cloud solution; and
59.24(3) operate no more than six data centers statewide.
59.25 Subd. 3. Enterprise services; personnel efficiencies. No later than June 30, 2019, the
59.26state chief information officer shall reduce the Office of MN.IT Services' total cost for
59.27enterprise services personnel by at least $3,000,000.
59.28 Subd. 4. Legislative report; application consolidation. No later than January 1, 2018,
59.29the state chief information officer must submit a report to the chairs and ranking minority
59.30members of the house of representatives and senate committees with jurisdiction over state
59.31government finance on the status of business application software consolidation across state
59.32agencies. At a minimum, the report must describe the outcomes achieved to date, a plan
60.1and timeline for continued consolidation of business application software with measurable
60.2outcome goals, and recommendations, if any, on legislation necessary to facilitate
60.3achievement of these goals.
60.4 Sec. 47. INITIAL TRANSIT FINANCIAL ACTIVITY REPORTING.
60.5(a) The first transit financial activity review and report submitted under Minnesota
60.6Statutes, section 3.972, subdivision 4, must include financial information from the period
60.7beginning on January 1, 2016, and through the end of the fiscal quarter immediately preceding
60.8the date of the report.
60.9(b) The legislative auditor must provide a copy of the review under paragraph (a) to
60.10each county that is party to the joint powers agreement under Minnesota Statutes, section
60.11297A.992.
60.12EFFECTIVE DATE.This section is effective the day following final enactment.
60.13 Sec. 48. LIMIT ON EXPENDITURES FOR ADVERTISING.
60.14During the fiscal years ending June 30, 2018, and June 30, 2019, an executive branch
60.15agency's spending on advertising and promotions may not exceed 90 percent of the amount
60.16the agency spent on advertising and promotions during the fiscal year ending June 30, 2016.
60.17The commissioner of management and budget must ensure compliance with this limit and
60.18may issue guidelines and policies to executive agencies. The commissioner may forbid an
60.19agency from engaging in advertising as the commissioner determines necessary to ensure
60.20compliance with this section. This section does not apply to the Minnesota Lottery, Explore
60.21Minnesota Tourism, or the Minnesota State Colleges and Universities. Spending during the
60.22biennium ending June 30, 2019, on advertising relating to a declared emergency, an
60.23emergency, or a disaster, as those terms are defined in Minnesota Statutes, section 12.03,
60.24is excluded for purposes of this section.
60.25 Sec. 49. TRANSITION; STATE AUDITOR ENTERPRISE FUND.
60.26Notwithstanding any law to the contrary, receipts received by the state auditor on or
60.27after July 1, 2017, from examinations conducted by the state auditor under Minnesota
60.28Statutes, chapter 6, must be credited to the general fund. Amounts in the state auditor
60.29enterprise fund at the end of fiscal year 2017 are transferred to the general fund.
61.1 Sec. 50. REIMBURSEMENT OF LEGAL COSTS FOR WRIGHT, BECKER, AND
61.2RAMSEY COUNTIES.
61.3The state auditor shall reimburse Wright, Becker, and Ramsey Counties for legal fees
61.4incurred and costs and disbursements made as a result of defending against the state auditor's
61.5lawsuit against them.
61.6 Sec. 51. LIMIT ON INCREASE IN MANAGERIAL COMPENSATION.
61.7(a) Except as provided in paragraph (b), during the biennium ending June 30, 2019, an
61.8employee covered by the managerial plan in Minnesota Statutes, section 43A.18, subdivision
61.93, may not be granted a percentage increase in annual salary that exceeds the lesser of:
61.10(1) the percentage increase in Minnesota median household income, as determined by
61.11the American Community Survey compiled by the United States Bureau of the Census, for
61.12the most recent 12-month period for which data is available; or
61.13(2) the percentage increase in the Consumer Price Index, as determined by the United
61.14States Bureau of Labor Statistics, for the most recent 12-month period for which data is
61.15available.
61.16(b) This section does not apply to an employee whose salary is established according to
61.17Minnesota Statutes, section 15A.083.
61.18 Sec. 52. SALARY LIMIT.
61.19(a) During the fiscal year ending June 30, 2018, the aggregate amount spent by all
61.20executive branch agencies on employee salaries may not exceed 101 percent of the aggregate
61.21amount these agencies spent on employee salaries in the fiscal year ending June 30, 2017.
61.22(b) During the fiscal year ending June 30, 2019, the aggregate amount spent by all
61.23executive branch agencies on employee salaries may not exceed 103 percent of the aggregate
61.24amount these agencies spent on employee salaries in the fiscal year ending June 30, 2017.
61.25(c) For purposes of this section, "executive branch" has the meaning given in Minnesota
61.26Statutes, section 43A.02, subdivision 22, and includes the Minnesota State Colleges and
61.27Universities but not constitutional offices.
61.28 Sec. 53. ICE PALACE ON CAPITOL GROUNDS AUTHORIZED.
61.29 Subdivision 1. Use agreement; terms required. The commissioner of administration
61.30may enter a use agreement with the St. Paul Festival and Heritage Foundation for the
61.31construction, operation, and removal of an ice palace and related temporary structures on
62.1the grounds of the State Capitol complex. If a use agreement for this purpose is entered, the
62.2terms must include the following:
62.3(1) mutually agreed upon beginning and end dates for access to the grounds for
62.4construction, operation, and removal of the ice palace and related temporary structures;
62.5(2) notwithstanding Minnesota Rules, part 7525.0400, an allowance for the St. Paul
62.6Festival and Heritage Foundation to establish fees for admission to the ice palace and for
62.7participation in related activities, and for vendors to sell concessions subject to terms
62.8negotiated in the use agreement. Any fees established must allow a reasonable opportunity
62.9for all Minnesotans, regardless of income, to access the palace and participate in related
62.10activities, and must allow free or discounted admission to members of the military, military
62.11veterans, and their families. A fee may not be charged for general admission to the Capitol
62.12grounds or, to the extent practicable, for access to public memorials and monuments located
62.13on the Capitol grounds;
62.14(3) notwithstanding Minnesota Statutes, section 15B.28, and related rules of the Capitol
62.15Area Architectural and Planning Board, an allowance for the St. Paul Festival and Heritage
62.16Foundation to erect advertising devices promoting the ice palace and its sponsors and donors,
62.17subject to terms negotiated in the use agreement;
62.18(4) a restriction on private events that limit public access to the ice palace or surrounding
62.19Capitol grounds, without prior approval of the commissioner of administration; and
62.20(5) a requirement that, following removal of the ice palace and related temporary
62.21structures, the St. Paul Festival and Heritage Foundation restore the Capitol grounds to the
62.22same condition as existed prior to their construction.
62.23 Subd. 2. Additional terms. In addition to the terms required by subdivision 1, a use
62.24agreement authorized by this section may include additional terms as necessary to preserve
62.25the integrity, dignity, and security of the State Capitol building, the Capitol grounds, and
62.26the surrounding public buildings, memorials, and monuments, and to ensure compliance
62.27with other applicable laws governing commercial activity on public property.
62.28 Subd. 3. Costs, expenses, and liabilities. Unless expressly provided in the use agreement,
62.29any costs or expenses incurred by the state or the city of St. Paul in implementing a use
62.30agreement entered under this section must be paid or reimbursed by the St. Paul Festival
62.31and Heritage Foundation. Notwithstanding Minnesota Statutes, section 3.736, subdivision
62.321, and Minnesota Statutes, section 466.02, the state, the city of St. Paul, and their employees
62.33are not liable for losses incurred during the construction, operation, or removal of an ice
63.1palace or related temporary structures, or losses incurred by a person while visiting the ice
63.2palace or participating in related activities.
63.3EFFECTIVE DATE.This section is effective the day following final enactment.
63.4 Sec. 54. WAITE PARK; HOTEL INSPECTION.
63.5(a) Notwithstanding any other law to the contrary and in addition to any other requirement
63.6in law, the city of Waite Park may adopt an ordinance to require a hotel, motel, or lodging
63.7establishment operating within the city's jurisdiction to have a valid license issued by the
63.8city. The license may prohibit the licensee from:
63.9(1) knowingly allowing a room to be occupied for purposes of sex trafficking;
63.10(2) knowingly allowing a room to be occupied for the purposes of illegal drug activity;
63.11(3) knowingly allowing a room to be occupied by a minor for the consumption of
63.12alcoholic beverages;
63.13(4) prohibiting the inspection of the licensed premises;
63.14(5) failing to report observed or suspected illegal activity to the police in a reasonable
63.15period of time; and
63.16(6) failure to maintain the licensed premises to all building, fire, mechanical, zoning or
63.17licensing codes.
63.18The ordinance may provide for inspections related to the activities the license addresses.
63.19The city may collect a reasonable fee related to the cost of issuing the license and conducting
63.20inspections.
63.21(b) "Hotel," "motel," and "lodging establishment" are as defined in Minnesota Statutes,
63.22section 157.15.
63.23(c) The authority in this section does not replace or diminish the authority of the
63.24community health board to inspect and license any hotel, motel, or lodging establishment
63.25in the city.
63.26EFFECTIVE DATE.This section is effective the day following final enactment without
63.27local approval, as provided in Minnesota Statutes, section 645.023, subdivision 1, paragraph
63.28(a).
64.1 Sec. 55. EYELASH TECHNICIAN GRANDFATHERING.
64.2(a) The board must issue grandfathered eyelash technician licenses no later than February
64.31, 2018, under the conditions in this section.
64.4(b) A complete grandfathering application for an eyelash technician license must be
64.5received in the board office between August 1, 2017, and January 31, 2018, and must contain:
64.6(1) proof of a high school diploma or equivalent;
64.7(2) proof of completion of an eyelash extension training course before July 1, 2017;
64.8(3) proof of completion of a six-hour board-approved public health and safety course
64.9provided by a board-licensed school or a board-recognized professional association organized
64.10under Minnesota Statutes, chapter 317A. Four hours must be related to health, safety, and
64.11infection control and two hours must be related to Minnesota laws and rules governing
64.12cosmetology;
64.13(4) original passing results no more than one year old of board-approved laws and rules
64.14test and theory tests; and
64.15(5) the practitioner fees required under Minnesota Statutes, section 155A.25.
64.16(c) A complete grandfathering application for an eyelash salon manager license must
64.17be received in the board office between August 1, 2017, and January 31, 2018, and must
64.18contain:
64.19(1) proof of a high school diploma or equivalent;
64.20(2) proof of completion of an eyelash extension training course before July 1, 2017;
64.21(3) documentation of at least 2,700 hours of experience performing eyelash extensions
64.22within the last three years;
64.23(4) original passing results no more than one year old of board-approved laws and rules
64.24test and theory tests;
64.25(5) original passing results no more than one year old of board-approved salon manager
64.26test;
64.27(6) proof of a six-hour board-approved public health and safety course provided by a
64.28board-licensed school or a board-recognized professional association organized under
64.29Minnesota Statutes, chapter 317A. Four hours must be related to infection control and two
64.30hours must be related to Minnesota laws and rules; and
64.31(7) the practitioner fees required under Minnesota Statutes, section 155A.25.
65.1(d) Grandfathered licenses must not be expedited under Minnesota Statutes, section
65.2155A.25, subdivision 7. The application timelines under Minnesota Statutes, section 155A.25,
65.3subdivisions 5, 6, and 8, do not apply to grandfathered licenses.
65.4EFFECTIVE DATE.This section is effective the day following final enactment.
65.5 Sec. 56. EYELASH TECHNICIAN RULEMAKING.
65.6The Board of Cosmetologist Examiners shall adopt rules governing the eyelash technician
65.7and salon licenses, which must include scope of practice, the conditions and process of
65.8issuing and renewing the license, requirements related to education and testing, and 14 hours
65.9of training regarding application of eyelash extensions in a board-licensed school. The board
65.10may use the expedited rule process in Minnesota Statutes, section 14.389. The grant of
65.11rulemaking authority under this section expires May 31, 2019.
65.12 Sec. 57. EYELASH TECHNICIAN LICENSING.
65.13The Board of Cosmetologist Examiners must not issue an eyelash practitioner license
65.14before February 1, 2018, except for grandfathered licenses issued under section 55. The
65.15Board of Cosmetologist Examiners must not require a person to have an eyelash practitioner
65.16license for eyelash extensions before February 1, 2018.
65.17 Sec. 58. REPEALER.
65.18 Subdivision 1. State auditor enterprise fund. Minnesota Statutes 2016, section 6.581,
65.19subdivision 1, is repealed.
65.20 Subd. 2. Washington, D.C. office. Minnesota Statutes 2016, section 4.46, is repealed.
65.23 Section 1. Minnesota Statutes 2016, section 15.0596, is amended to read:
65.2415.0596 ADDITIONAL COMPENSATION FROM CONTINGENT FUND
65.25PROHIBITED.
65.26In all cases where the compensation of an officer of the state is fixed by law at a specified
65.27sum, it shall be unlawful for any such officer or employee to receive additional compensation
65.28for the performance of official services out of the contingent fund of the officer or the
65.29department, and it shall be unlawful for the head of any department of the state government
65.30to direct the payment of such additional compensation out of the contingent fund; and the
66.1commissioner of management and budget is hereby prohibited from issuing awarrant
66.2payment upon such contingent fund in payment of such additional compensation.
66.3Every person offending against the provisions of this section shall be guilty of a
66.4misdemeanor.
66.5 Sec. 2. Minnesota Statutes 2016, section 15.191, subdivision 1, is amended to read:
66.6 Subdivision 1. Emergency disbursements. Imprest cash funds for the purpose of making
66.7minor disbursements, providing for change, and providing employees with travel advances
66.8or a portion or all of their payrollwarrant where the warrant payment has not been received
66.9through the payroll system, may be established by state departments or agencies from
66.10existing appropriations in the manner prescribed by this section.
66.11 Sec. 3. Minnesota Statutes 2016, section 15.191, subdivision 3, is amended to read:
66.12 Subd. 3.Warrant Payment against designated appropriation. Imprest cash funds
66.13established under this section shall be created bywarrant drawn payment issued against the
66.14appropriation designated by the commissioner of management and budget.
66.15 Sec. 4. Minnesota Statutes 2016, section 16A.065, is amended to read:
66.1616A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES
66.17DOCUMENTS.
66.18Notwithstanding section16A.41, subdivision 1 , the commissioner may allow an agency
66.19to make advance deposits or payments for software or software maintenance services for
66.20state-owned or leased electronic data processing equipment, for information technology
66.21hosting services, for sole source maintenance agreements where it is not cost-effective to
66.22pay in arrears, for exhibit booth space or boat slip rental when required by the renter to
66.23guarantee the availability of space, for registration fees where advance payment is required
66.24or advance payment discount is provided,and for newspaper, magazine, and other
66.25subscription fees, and other costs where advance payment discount is provided or are
66.26customarily paid for in advance. The commissioner may also allow advance deposits by
66.27any department with the Library of Congress and federal Supervisor of Documents for items
66.28to be purchased from those federal agencies.
66.29 Sec. 5. Minnesota Statutes 2016, section 16A.13, subdivision 2a, is amended to read:
66.30 Subd. 2a. Procedure. The commissioner shall see that the deduction for the withheld
66.31tax is made from an employee's pay on the payroll abstract. The commissioner shall approve
67.1onewarrant payable payment to the commissioner for the total amount deducted on the
67.2abstract. Deductions from the pay of an employee paid direct by an agency shall be made
67.3by the employee's payroll authority. A later deduction must correct an error made on an
67.4earlier deduction. The paying authority shall see that awarrant or check payment for the
67.5deductions is promptly sent to the commissioner. The commissioner shall deposit the amount
67.6of thewarrant or check payment to the credit of the proper federal authority or other person
67.7authorized by federal law to receive it.
67.8 Sec. 6. Minnesota Statutes 2016, section 16A.134, is amended to read:
67.916A.134 CHARITABLE ORGANIZATIONS PAYROLL DEDUCTIONS.
67.10An employee's contribution to a registered combined charitable organization defined in
67.11section43A.50 may be deducted from the employee's pay. On the employee's written request,
67.12the commissioner shall deduct a requested amount from the pay of the employee for each
67.13pay period. The commissioner shall issue awarrant payment in that amount to the specified
67.14organization.
67.15 Sec. 7. Minnesota Statutes 2016, section 16A.15, subdivision 3, is amended to read:
67.16 Subd. 3. Allotment and encumbrance. (a) A payment may not be made without prior
67.17obligation. An obligation may not be incurred against any fund, allotment, or appropriation
67.18unless the commissioner has certified a sufficient unencumbered balance or the accounting
67.19system shows sufficient allotment or encumbrance balance in the fund, allotment, or
67.20appropriation to meet it. The commissioner shall determine when the accounting system
67.21may be used to incur obligations without the commissioner's certification of a sufficient
67.22unencumbered balance. An expenditure or obligation authorized or incurred in violation of
67.23this chapter is invalid and ineligible for payment until made valid. A payment made in
67.24violation of this chapter is illegal. An employee authorizing or making the payment, or
67.25taking part in it, and a person receiving any part of the payment, are jointly and severally
67.26liable to the state for the amount paid or received. If an employee knowingly incurs an
67.27obligation or authorizes or makes an expenditure in violation of this chapter or takes part
67.28in the violation, the violation is just cause for the employee's removal by the appointing
67.29authority or by the governor if an appointing authority other than the governor fails to do
67.30so. In the latter case, the governor shall give notice of the violation and an opportunity to
67.31be heard on it to the employee and to the appointing authority. A claim presented against
67.32an appropriation without prior allotment or encumbrance may be made valid on investigation,
67.33review, and approval by the agency head in accordance with the commissioner's policy, if
68.1the services, materials, or supplies to be paid for were actually furnished in good faith
68.2without collusion and without intent to defraud. The commissioner may thendraw a warrant
68.3to pay the claim just as properly allotted and encumbered claims are paid.
68.4(b) The commissioner may approve payment for materials and supplies in excess of the
68.5obligation amount when increases are authorized by section16C.03, subdivision 3 .
68.6(c) To minimize potential construction delay claims, an agency with a project funded
68.7by a building appropriation may allow a contractor to proceed with supplemental work
68.8within the limits of the appropriation before money is encumbered. Under this circumstance,
68.9the agency may requisition funds and allow contractors to expeditiously proceed with a
68.10construction sequence. While the contractor is proceeding, the agency shall immediately
68.11act to encumber the required funds.
68.12 Sec. 8. Minnesota Statutes 2016, section 16A.17, subdivision 5, is amended to read:
68.13 Subd. 5. Payroll duties. When the department prepares the payroll for an agency, the
68.14commissioner assumes the agency head's duties to make authorized or required deductions
68.15from, or employer contributions on, the pay of the agency's employees and to prepare and
68.16issue the necessarywarrants payments.
68.17 Sec. 9. Minnesota Statutes 2016, section 16A.272, subdivision 3, is amended to read:
68.18 Subd. 3. Section7.191941,
68.19section7.19
68.20 Sec. 10. Minnesota Statutes 2016, section 16A.40, is amended to read:
68.2116A.40 WARRANTS AND ELECTRONIC FUND TRANSFERS.
68.22Money must not be paid out of the state treasury except upon the warrant of the
68.23commissioner or an electronic fund transfer approved by the commissioner. Warrants must
68.24be drawn on printed blanks that are in numerical order. The commissioner shall enter, in
68.25numerical order in awarrant payment register, the number, amount, date, and payee for
68.26everywarrant payment issued.
68.27The commissioner may require payees to supply their bank routing information to enable
68.28the payments to be made through an electronic fund transfer.
69.1 Sec. 11. Minnesota Statutes 2016, section 16A.42, subdivision 2, is amended to read:
69.2 Subd. 2. Approval. If the claim is approved, the commissioner shallcomplete and sign
69.3a warrant issue a payment in the amount of the claim.
69.4 Sec. 12. Minnesota Statutes 2016, section 16A.42, subdivision 4, is amended to read:
69.5 Subd. 4. Register. The commissioner shall enter awarrant payment in the warrant
69.6payment register as if it were a cash payment.
69.7 Sec. 13. Minnesota Statutes 2016, section 16A.42, is amended by adding a subdivision to
69.8read:
69.9 Subd. 5. Invalid claims. If the commissioner determines that a claim is invalid after
69.10issuing a warrant, the commissioner may void an unpaid warrant. The commissioner is not
69.11liable to any holder who took the void warrant for value.
69.12 Sec. 14. Minnesota Statutes 2016, section 16A.56, is amended to read:
69.1316A.56 COMMISSIONER'S RECEIPT AND CLAIM DUTIES.
69.14The commissioner or a designee shall examine every receipt and claim, and if proper,
69.15approve them, name the account to be charged or credited, and issuewarrants payments to
69.16pay claims.
69.17 Sec. 15. Minnesota Statutes 2016, section 16A.671, subdivision 1, is amended to read:
69.18 Subdivision 1. Authority; advisory recommendation. To ensure that cash is available
69.19when needed topay warrants make payments drawn on the general fund under appropriations
69.20and allotments, the commissioner may (1) issue certificates of indebtedness in anticipation
69.21of the collection of taxes levied for and other revenues appropriated to the general fund for
69.22expenditure during each biennium; and (2) issue additional certificates to refund outstanding
69.23certificates and interest on them, under the Constitution, article XI, section 6.
69.24 Sec. 16. Minnesota Statutes 2016, section 16B.37, subdivision 4, is amended to read:
69.25 Subd. 4. Work of department for another. To avoid duplication and improve efficiency,
69.26the commissioner may direct an agency to do work for another agency or may direct a
69.27division or section of an agency to do work for another division or section within the same
69.28agency and shall require reimbursement for the work. Reimbursements received by an
69.29agency are reappropriated to the account making the original expenditure in accordance
70.1with the transferwarrant procedure established by the commissioner of management and
70.2budget.
70.3 Sec. 17. Minnesota Statutes 2016, section 16D.03, subdivision 2, is amended to read:
70.4 Subd. 2. State agency reports. State agencies shall report quarterly to the commissioner
70.5of management and budget the debts owed to them. The commissioner of management and
70.6budget, in consultation with the commissioners of revenue and human services, and the
70.7attorney general, shall establish internal guidelines for the recognition, tracking, and
70.8reporting, and collection of debts owed the state. The internal guidelines must include
70.9accounting standards, performance measurements, and uniform reporting requirements
70.10applicable to all state agencies. The commissioner of management and budget shall require
70.11a state agency to recognize, track, report, and attempt to collect debts according to the
70.12internal guidelines. The commissioner, in consultation with the commissioner of management
70.13and budget and the attorney general, shall establish internal guidelines for the collection of
70.14debt owed to the state.
70.15 Sec. 18. Minnesota Statutes 2016, section 16D.09, subdivision 1, is amended to read:
70.16 Subdivision 1. Generally. When a debt is determined by a state agency to be
70.17uncollectible, the debt may be written off by the state agency from the state agency's financial
70.18accounting records and no longer recognized as an account receivable for financial reporting
70.19purposes. A debt is considered to be uncollectible when (1) all reasonable collection efforts
70.20have been exhausted, (2) the cost of further collection action will exceed the amount
70.21recoverable, (3) the debt is legally without merit or cannot be substantiated by evidence,
70.22(4) the debtor cannot be located, (5) the available assets or income, current or anticipated,
70.23that may be available for payment of the debt are insufficient, (6) the debt has been
70.24discharged in bankruptcy, (7) the applicable statute of limitations for collection of the debt
70.25has expired, or (8) it is not in the public interest to pursue collection of the debt.The
70.26determination of the uncollectibility of a Uncollectible debt must be reported by the state
70.27agencyalong with the basis for that decision as part of its quarterly reports to the
70.28commissioner of management and budget. The basis for the determination of the
70.29uncollectibility of the debt must be maintained by the state agency. Determining that the
70.30debt is uncollectible does not cancel the legal obligation of the debtor to pay the debt.
70.31 Sec. 19. Minnesota Statutes 2016, section 21.116, is amended to read:
70.3221.116 EXPENSES.
71.1All necessary expenses incurred in carrying out the provisions of sections21.111 to
71.221.122
and the compensation of officers, inspectors, and employees appointed, designated,
71.3or employed by the commissioner, as provided in such sections, together with their necessary
71.4traveling expenses, together with the traveling expenses of the members of the advisory
71.5seed potato certification committee, and other expenses necessary in attending committee
71.6meetings, shall be paid from, and only from, the seed potato inspection account, on order
71.7of the commissioner and commissioner of management andbudget's voucher warrant budget.
71.8 Sec. 20. Minnesota Statutes 2016, section 43A.30, subdivision 2, is amended to read:
71.9 Subd. 2. Payroll deduction. If an eligible person who is on any payroll of the state or
71.10an eligible person's dependents is enrolled for any of the optional coverages made available
71.11by the commissioner pursuant to section43A.26 the commissioner of management and
71.12budget, upon the person's written order, shall deduct from the salary or wages of the person
71.13those amounts required from time to time to maintain the optional coverages in force, and
71.14issue awarrant payment therefor to the appropriate carrier.
71.15 Sec. 21. Minnesota Statutes 2016, section 43A.49, is amended to read:
71.1643A.49 VOLUNTARY UNPAID LEAVE OF ABSENCE.
71.17(a) Appointing authorities in state government may allow each employee to take unpaid
71.18leaves of absence for up to 1,040 hours in each two-year period beginning July 1 of each
71.19odd-numbered year. Each appointing authority approving such a leave shall allow the
71.20employee to continue accruing vacation and sick leave, be eligible for paid holidays and
71.21insurance benefits, accrue seniority, and accrue service credit and credited salary in retirement
71.22plans as if the employee had actually been employed during the time of leave. An employee
71.23covered by the unclassified plan may voluntarily make the employee contributions to the
71.24unclassified plan during the leave of absence. If the employee makes these contributions,
71.25the appointing authority must make the employer contribution. If the leave of absence is
71.26for one full pay period or longer, any holiday pay shall be included in the first payrollwarrant
71.27payment after return from the leave of absence. The appointing authority shall attempt to
71.28grant requests for the unpaid leaves of absence consistent with the need to continue efficient
71.29operation of the agency. However, each appointing authority shall retain discretion to grant
71.30or refuse to grant requests for leaves of absence and to schedule and cancel leaves, subject
71.31to the applicable provisions of collective bargaining agreements and compensation plans.
71.32(b) To receive eligible service credit and credited salary in a defined benefit plan, the
71.33member shall pay an amount equal to the applicable employee contribution rates. If an
72.1employee pays the employee contribution for the period of the leave under this section, the
72.2appointing authority must pay the employer contribution. The appointing authority may, at
72.3its discretion, pay the employee contributions. Contributions must be made in a time and
72.4manner prescribed by the executive director of the applicable retirement system.
72.5 Sec. 22. Minnesota Statutes 2016, section 49.24, subdivision 13, is amended to read:
72.6 Subd. 13. Disposition of unclaimed dividends. Upon the liquidation of any financial
72.7institution liquidated by the commissioner as statutory liquidator, if any dividends or other
72.8moneys set apart for the payment of claims remain unpaid, and the places of residence of
72.9the owners thereof are unknown to the commissioner, the commissioner may pay same into
72.10the state treasury as hereinafter provided. Whenever the commissioner shall be satisfied
72.11that the process of liquidation should not be further continued the commissioner may make
72.12and certify triplicate lists of any such unclaimed dividends or other moneys, specifying the
72.13name of each owner, the amount due, and the last known address. Upon one of such lists,
72.14to be retained by the commissioner shall be endorsed the commissioner's order that such
72.15unclaimed moneys be forthwith deposited in the state treasury. When so deposited, one of
72.16said lists shall be delivered to the commissioner of management and budget and the
72.17commissioner shall retain in the commissioner's office such records and proofs concerning
72.18said claims as the commissioner may have, which shall thereafter remain on file in the
72.19office. The commissioner of management and budget shall execute upon the list retained
72.20by the commissioner a receipt for such money, which shall operate as a full discharge of
72.21the commissioner on account of such claims. At any time within six years after such receipt,
72.22but not afterward, the claimant may apply to the commissioner for the amount so deposited
72.23for the claimant's benefit, and upon proof satisfactory to the governor, the attorney general
72.24and the commissioner, or to a majority of them, they shall give an order to the commissioner
72.25of management and budget to issue awarrant payment for such amount, and such warrant
72.26payment shall thereupon be issued. If no such claim be presented within six years, the
72.27commissioner shall so note upon the commissioner's copy of said list and certify the fact
72.28to the commissioner of management and budget who shall make like entries upon the
72.29commissioner of management and budget's corresponding lists; and all further claims to
72.30said money shall be barred. Provided, that the commissioner of management and budget
72.31shall transfer to the commissioner of commerce's liquidation fund created by this section
72.32not to exceed 50 percent of the amount so turned over by the commissioner, to be used to
72.33partially defray expenses in connection with the liquidation of closed banks and the conduct
72.34of the liquidation division, in such amounts and at such times as the commissioner shall
72.35request.
73.1There is hereby appropriated to the persons entitled to such amounts, from such moneys
73.2in the state treasury not otherwise appropriated, an amount sufficient to make such payment.
73.3 Sec. 23. Minnesota Statutes 2016, section 49.24, subdivision 16, is amended to read:
73.4 Subd. 16. Transfers to liquidation fund. The following moneys shall be transferred to
73.5and deposited in the commissioner of commerce's liquidation fund:
73.6(1) All moneys paid to the commissioner of management and budget by the commissioner
73.7out of funds of any financial institution in the commissioner's hands as reimbursement for
73.8services and expenses pursuant to the provisions of subdivision 7.
73.9(2) All moneys in the possession of the commissioner set aside for the purpose of meeting
73.10unforeseen and contingent expenses incident to the liquidation of closed financial institutions,
73.11which funds have been or shall be hereafter established by withholding portions of final
73.12liquidating dividends in such cases.
73.13(3) All moneys which the commissioner shall request the commissioner of management
73.14and budget to transfer to such fund pursuant to the provisions of subdivision 13.
73.15(4) All moneys in the possession of the commissioner now carried on the commissioner's
73.16books in "stamp account," "suspense account," and "unclaimed deposit account."
73.17(5) All moneys in the possession of the commissioner which the commissioner may be
73.18authorized by order of any district court having jurisdiction of any liquidation proceedings
73.19to transfer to such fund, or to use for any of the purposes for which the fund is established.
73.20(6) All moneys in the possession of the commissioner carried on the commissioner's
73.21books in the "unclaimed bonds account." At any time within six years after any bond the
73.22proceeds of the sale of which constitute a portion of the moneys in this paragraph referred
73.23to came into the possession of the commissioner as liquidator of any financial institution,
73.24any claimant thereto may apply to the commissioner for the proceeds of the sale of such
73.25bond, and, upon proof satisfactory to the governor, the attorney general, and the
73.26commissioner, or a majority of them, they shall give an order to the commissioner of
73.27management and budget to issue awarrant payment for such amount, without interest, and
73.28suchwarrant payment shall thereupon be issued and the amount thereof paid out of the
73.29commissioner of commerce's liquidation fund. If no such claim be presented within such
73.30period, all further claims to the proceeds of any such bond shall be barred.
73.31(7) All sums which the commissioner may receive from the sale of personal property of
73.32liquidated financial institutions where the final dividend has been paid and no disposition
73.33of said property made by any order of the court, and the proceeds of sales of any personal
74.1property used by the liquidation division which have been purchased with funds of financial
74.2institutions in liquidation.
74.3 Sec. 24. Minnesota Statutes 2016, section 69.031, subdivision 1, is amended to read:
74.4 Subdivision 1. Commissioner'swarrant payment. (a) The commissioner of management
74.5and budget shall issue to the Public Employees Retirement Association on behalf of a
74.6municipality or independent nonprofit firefighting corporation that is a member of the
74.7voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, to
74.8the Department of Natural Resources, the Department of Public Safety, or the county,
74.9municipality, or independent nonprofit firefighting corporation certified to the commissioner
74.10of management and budget by the commissioner awarrant payment for an amount equal
74.11to the amount of fire state aid or police state aid, whichever applies, certified for the
74.12applicable state aid recipient by the commissioner under section69.021 .
74.13(b) Fire state aid and police state aid is payable on October 1 annually. The amount of
74.14state aid due and not paid by October 1 accrues interest payable to the state aid recipient at
74.15the rate of one percent for each month or part of a month that the amount remains unpaid
74.16after October 1.
74.17 Sec. 25. Minnesota Statutes 2016, section 80A.65, subdivision 9, is amended to read:
74.18 Subd. 9. Generally. No filing for which a fee is required shall be deemed to be filed or
74.19given any effect until the proper fee is paid. All fees and charges collected by the
74.20administrator shall be covered into the state treasury. When any person is entitled to a refund
74.21under this section, the administrator shall certify to the commissioner of management and
74.22budget the amount of the fee to be refunded to the applicant, and the commissioner of
74.23management and budget shall issue awarrant in payment thereof out of the fund to which
74.24such fee was credited in the manner provided by law. There is hereby appropriated to the
74.25person entitled to such refunds from the fund in the state treasury to which such fees were
74.26credited an amount to make such refunds and payments.
74.27 Sec. 26. Minnesota Statutes 2016, section 84A.23, subdivision 4, is amended to read:
74.28 Subd. 4. Drainage ditch bonds; reports. (a) Immediately after a project is approved
74.29and accepted and then after each distribution of the tax collections on the June and November
74.30tax settlements, the county auditor shall certify to the commissioner of management and
74.31budget the following information relating to bonds issued to finance or refinance public
75.1drainage ditches wholly or partly within the projects, and the collection of assessments
75.2levied on account of the ditches:
75.3(1) the amount of principal and interest to become due on the bonds before the next tax
75.4settlement and distribution;
75.5(2) the amount of money collected from the drainage assessments and credited to the
75.6funds of the ditches; and
75.7(3) the amount of the deficit in the ditch fund of the county chargeable to the ditches.
75.8(b) On approving the certificate, the commissioner of management and budget shall
75.9draw a warrant issue a payment, payable out of the fund pertaining to the project, for the
75.10amount of the deficit in favor of the county.
75.11(c) As to public drainage ditches wholly within a project, the amount of money paid to
75.12or for the benefit of the county under paragraph (b) must never exceed the principal and
75.13interest of the bonds issued to finance or refinance the ditches outstanding at the time of
75.14the passage and approval of sections84A.20 to
84A.30 , less money on hand in the county
75.15ditch fund to the credit of the ditches. The liabilities must be reduced from time to time by
75.16the amount of all payments of assessments after April 25, 1931, made by the owners of
75.17lands assessed before that date for benefits on account of the ditches.
75.18(d) As to public drainage ditches partly within and partly outside a project, the amount
75.19paid from the fund pertaining to the project to or for the benefit of the county must never
75.20exceed a certain percentage of bonds issued to finance and refinance the ditches so
75.21outstanding, less money on hand in the county ditch fund to the credit of the ditches on
75.22April 25, 1931. The percentage must bear the same proportion to the whole amount of these
75.23bonds as the original benefits assessed against lands within the project bear to the original
75.24total benefits assessed to the entire system of the ditches. This liability shall be reduced
75.25from time to time by the payments of all assessments extended after April 25, 1931, made
75.26by the owners of lands within the project of assessments for benefits assessed before that
75.27date on account of a ditch.
75.28(e) The commissioner of management and budget may provide and prescribe forms for
75.29reports required by sections84A.20 to
84A.30 and require any additional information from
75.30county officials that the commissioner of management and budget considers necessary for
75.31the proper administration of sections84A.20 to
84A.30 .
76.1 Sec. 27. Minnesota Statutes 2016, section 84A.33, subdivision 4, is amended to read:
76.2 Subd. 4. Ditch bonds; funds; payments to counties. (a) Upon the approval and
76.3acceptance of a project and after each distribution of the tax collections for the June and
76.4November tax settlements, the county auditor shall certify to the commissioner of
76.5management and budget the following information about bonds issued to finance or refinance
76.6public drainage ditches wholly or partly within the projects, and the collection of assessments
76.7levied for the ditches:
76.8(1) the amount of principal and interest to become due on the bonds before the next tax
76.9settlement and distribution;
76.10(2) the amount of money collected from the drainage assessments and credited to the
76.11funds of the ditches, not already sent to the commissioner of management and budget as
76.12provided in sections84A.31 to
84A.42 ; and
76.13(3) the amount of the deficit in the ditch fund of the county chargeable to the ditches.
76.14(b) On approving this certificate of the county auditor, the commissioner of management
76.15and budget shalldraw a warrant issue a payment, payable out of the fund provided for in
76.16sections84A.31 to
84A.42 , and send it to the county treasurer of the county. These funds
76.17must be credited to the proper ditch of the county and placed in the ditch bond fund of the
76.18county, which is created, and used only to pay the ditch bonded indebtedness of the county
76.19assumed by the state under sections84A.31 to
84A.42 . The total amount of warrants drawn
76.20payments issued must not exceed in any one year the total amount of the deficit provided
76.21for under this section.
76.22(c) The state is subrogated to all title, right, interest, or lien of the county in or on the
76.23lands so certified within these projects.
76.24(d) As to public drainage ditches wholly within a project, the amount paid to, or for the
76.25benefit of, the county under this subdivision must never exceed the principal and interest
76.26of the bonds issued to finance or refinance a ditch outstanding on April 22, 1933, less money
76.27on hand in the county ditch fund to the credit of a ditch. These liabilities must be reduced
76.28from time to time by the amount of any payments of assessments extended after April 22,
76.291933, made by the owners of lands assessed before that date for benefits on account of the
76.30ditches.
76.31As to public drainage ditches partly within and partly outside a project the amount paid
76.32from the fund pertaining to the project to or for the benefit of the county must never exceed
76.33a certain percentage of bonds issued to finance and refinance a ditch so outstanding, less
77.1money on hand in the county ditch fund to the credit of a ditch on April 22, 1932. The
77.2percentage must bear the same proportion to the whole amount of the bonds as the original
77.3benefits assessed against these lands within the project bear to the original total benefits
77.4assessed to the entire system for a ditch. This liability must be reduced from time to time
77.5by the payments of all assessments extended after April 22, 1933, made by the owners of
77.6lands within the project of assessments for benefits assessed before that date on account of
77.7a ditch.
77.8 Sec. 28. Minnesota Statutes 2016, section 84A.40, is amended to read:
77.984A.40 COUNTY MAY ASSUME BONDS.
77.10Any county where a project or portion of it is located may voluntarily assume, in the
77.11manner specified in this section, the obligation to pay a portion of the principal and interest
77.12of the bonds issued before the approval and acceptance of the project and remaining unpaid
77.13at maturity, of any school district or town in the county and wholly or partly within the
77.14project. The portion must bear the same proportion to the whole of the unpaid principal and
77.15interest as the last net tax capacity, before the acceptance of the project, of lands then
77.16acquired by the state under sections84A.31 to
84A.42 in the school districts or towns bears
77.17to the total net tax capacity for the same year of the school district or town. This assumption
77.18must be evidenced by a resolution of the county board of the county. A copy of the resolution
77.19must be certified to the commissioner of management and budget within one year after the
77.20acceptance of the project.
77.21Later, if any of the bonds remains unpaid at maturity, the county board shall, upon
77.22demand of the governing body of the school district or town or of a bondholder, provide
77.23for the payment of the portion assumed. The county shall levy general taxes on all the taxable
77.24property of the county for that purpose, or issue its bonds to raise the sum needed, conforming
77.25to law respecting the issuance of county refunding bonds. The proceeds of taxes or bonds
77.26must be paid by the county treasurer to the treasurer of the school district or town. No
77.27payments shall be made by the county to the school district or town until the money in the
77.28treasury of the school district or town, together with the money to be paid by the county, is
77.29sufficient to pay in full each of the bonds as it becomes due.
77.30If a county fails to adopt and certify the resolution, the commissioner of management
77.31and budget shall withhold from the payments to be made to the county under section84A.32
77.32a sum equal to that portion of the principal and interest of the outstanding bonds that bears
77.33the same proportion to the whole of the bonds as the above determined net tax capacity of
77.34lands acquired by the state within the project bears to the total net tax capacity for the same
78.1year of the school district or town. Money withheld from the county must be set aside in
78.2the state treasury and not paid to the county until the full principal and interest of the school
78.3district and town bonds have been paid.
78.4If any bonds remain unpaid at maturity, upon the demand of the governing body of the
78.5school district or town, or a bondholder, the commissioner of management and budget shall
78.6issue to the treasurer of the school district or town awarrant payment for that portion of the
78.7past due principal and interest computed as in the case of the county's liability authorized
78.8in this section to be voluntarily assumed. Money received by a school district or town under
78.9this section must be applied to the payment of past-due bonds and interest.
78.10 Sec. 29. Minnesota Statutes 2016, section 84A.52, is amended to read:
78.1184A.52 ACCOUNTS; EXAMINATION, APPROPRIATION, PAYMENT.
78.12As a part of the examination provided for by section6.481 , of the accounts of the several
78.13counties within a game preserve, area, or project established under section84A.01 ,
84A.20 ,
78.14or84A.31 , the state auditor shall segregate the audit of the accounts reflecting the receipt
78.15and disbursement of money collected or disbursed under this chapter or from the sale of
78.16tax-forfeited lands held by the state under section84A.07 ,
84A.26 , or
84A.36 . The auditor
78.17shall also include in the reports required by section6.481 summary statements as of
78.18December 31 before the examination that set forth the proportionate amount of principal
78.19and interest due from the state to the individual county and any money due the state from
78.20the county remaining unpaid under this chapter, or from the sale of any tax-forfeited lands
78.21referred to in this section, and other information required by the commissioner of management
78.22and budget. On receiving a report, the commissioner of management and budget shall
78.23determine the net amount due to the county for the period covered by the report and shall
78.24draw a warrant issue a payment upon the state treasury payable out of the consolidated fund
78.25for that amount. It must be paid to and received by the county as payment in full of all
78.26amounts due for the period stated on thewarrants payments from the state under any
78.27provision of this chapter.
78.28Money topay the warrants make the payments is appropriated to the counties entitled
78.29to payment from the consolidated fund in the state treasury.
78.30 Sec. 30. Minnesota Statutes 2016, section 88.12, subdivision 1, is amended to read:
78.31 Subdivision 1. Limitation. The compensation and expenses of persons temporarily
78.32employed in emergencies in suppression or control of wildfires shall be fixed by the
78.33commissioner of natural resources or an authorized agent and paid as provided by law. Such
79.1compensation shall not exceed the maximum rate for comparable labor established as
79.2provided by law or rules, but shall not be subject to any minimum rate so established. The
79.3commissioner is authorized to draw and expend from money appropriated for the purposes
79.4of sections88.03 to
88.22 a reasonable sum and through forest officers or other authorized
79.5agent be used in paying emergency expenses, including just compensation for services
79.6rendered by persons summoned and for private property used, damaged, or appropriated
79.7under sections88.03 to
88.22 . The commissioner of management and budget is authorized
79.8todraw a warrant issue a payment for this sum when duly approved by the commissioner.
79.9The commissioner or agent in charge shall take proper subvouchers or receipts from all
79.10persons to whom these moneys are paid, and after these subvouchers have been approved
79.11they shall be filed with the commissioner of management and budget. Authorized funds as
79.12herein provided at any time shall be deposited, subject to withdrawal or disbursement by
79.13check or otherwise for the purposes herein prescribed, in a bank authorized and bonded to
79.14receive state deposits; and the bond of this bank to the state shall cover and include this
79.15deposit.
79.16 Sec. 31. Minnesota Statutes 2016, section 94.522, is amended to read:
79.1794.522 TRANSMISSION OFWARRANTS PAYMENTS TO COUNTY
79.18TREASURERS; USE OF PROCEEDS.
79.19It shall be the duty of the commissioner of management and budget to transmitwarrants
79.20on payments from the state treasury to the county treasurer of the respective counties for
79.21the sums that may be due in accordance with section94.521 , which sums are hereby
79.22appropriated out of the state treasury from the amounts received from the United States
79.23government pursuant to the aforesaid acts of Congress, and such money shall be used by
79.24the counties receiving the same for the purposes and in the proportions herein provided.
79.25 Sec. 32. Minnesota Statutes 2016, section 94.53, is amended to read:
79.2694.53WARRANT PAYMENT TO COUNTY TREASURERS; FEDERAL LOANS
79.27TO COUNTIES.
79.28It shall be the duty of the commissioner of management and budget to transmitwarrants
79.29on payments from the state treasury to the county treasurers of the respective counties for
79.30the sum that may be due in accordance with sections94.52 to
94.54 , which sum or sums
79.31are hereby appropriated out of the state treasury from the amounts received from the United
79.32States government pursuant to the aforesaid act of Congress. The commissioner of
79.33management and budget, upon being notified by the federal government or any agencies
80.1thereof that a loan has been made to any such county the repayment of which is to be made
80.2from such fund, is authorized to transmit awarrant or warrants payment to the federal
80.3government or any agency thereof sufficient to repay such loan out of any money apportioned
80.4or due to such county under the provisions of such act of Congress, approved May 23, 1908
80.5(Statutes at Large, volume 35, page 260).
80.6 Sec. 33. Minnesota Statutes 2016, section 116J.64, subdivision 7, is amended to read:
80.7 Subd. 7. Processing. (a) An Indian desiring a loan for the purpose of starting a business
80.8enterprise or expanding an existing business shall make application to the appropriate tribal
80.9government. The application shall be forwarded to the appropriate eligible organization, if
80.10it is participating in the program, for consideration in conformity with the plans submitted
80.11by said tribal governments. The tribal government may approve the application if it
80.12determines that the loan would advance the goals of the Indian business loan program. If
80.13the tribal government is not participating in the program, the agency may directly approve
80.14or deny the loan application.
80.15(b) If the application is approved, the tribal government shall forward the application,
80.16together with all relevant documents pertinent thereto, to the commissioner of the agency,
80.17who shallcause a warrant request a payment to be drawn in favor of issued to the applicant
80.18or the applicable tribal government,or the agency, if it is administering the loan, with
80.19appropriate notations identifying the borrower.
80.20(c) The tribal government, eligible organization, or the agency, if it is administering the
80.21loan, shall maintain records of transactions for each borrower in a manner consistent with
80.22good accounting practice. The interest rate on a loan shall be established by the tribal
80.23government or the agency, but may be no less than two percent per annum nor more than
80.24ten percent per annum. When any portion of a debt is repaid, the tribal government, eligible
80.25organization, or the agency, if it is administering the loan, shall remit the amount so received
80.26plus interest paid thereon to the commissioner of management and budget through the
80.27agency. The amount so received shall be credited to the Indian business loan account.
80.28(d) On the placing of a loan, additional money equal to ten percent of the total amount
80.29made available to any tribal government, eligible organization, or the agency, if it is
80.30administering the loan, for loans during the fiscal year shall be paid to the tribal government,
80.31eligible organization, or the agency, prior to December 31 for the purpose of financing
80.32administrative costs.
81.1 Sec. 34. Minnesota Statutes 2016, section 126C.55, subdivision 2, is amended to read:
81.2 Subd. 2. Notifications; payment; appropriation. (a) If a school district or intermediate
81.3school district believes that it may be unable to make a principal or interest payment on any
81.4outstanding debt obligation on the date that payment is due, it must notify the commissioner
81.5as soon as possible, but not less than 15 working days before the date that principal or
81.6interest payment is due. The notice must include the name of the school district or
81.7intermediate school district, an identification of the debt obligation issue in question, the
81.8date the payment is due, the amount of principal and interest due on the payment date, the
81.9amount of principal or interest that the school district or intermediate school district will be
81.10unable to repay on that date, the paying agent for the debt obligation, the wire transfer
81.11instructions to transfer funds to that paying agent, and an indication as to whether a payment
81.12is being requested by the school district or intermediate school district under this section.
81.13If a paying agent becomes aware of a potential default, it shall inform the commissioner of
81.14that fact. After receipt of a notice which requests a payment under this section, after
81.15consultation with the school district or intermediate school district and the paying agent,
81.16and after verification of the accuracy of the information provided, the commissioner shall
81.17notify the commissioner of management and budget of the potential default. The notice
81.18must include a final figure as to the amount due that the school district or intermediate
81.19school district will be unable to repay on the date due.
81.20 (b) Except as provided in subdivision 9, upon receipt of this notice from the
81.21commissioner, the commissioner of management and budget shall issue awarrant payment
81.22and authorize the commissioner of education to pay to the paying agent for the debt obligation
81.23the specified amount on or before the date due. The amounts needed for the purposes of
81.24this subdivision are annually appropriated to the department from the state general fund.
81.25 (c) The Departments of Education and Management and Budget must jointly develop
81.26detailed procedures for school districts and intermediate school districts to notify the state
81.27that they have obligated themselves to be bound by the provisions of this section, procedures
81.28for school districts or intermediate school districts and paying agents to notify the state of
81.29potential defaults and to request state payment under this section, and procedures for the
81.30state to expedite payments to prevent defaults. The procedures are not subject to chapter
81.3114.
81.32 Sec. 35. Minnesota Statutes 2016, section 126C.55, subdivision 9, is amended to read:
81.33 Subd. 9. State bond rating. If the commissioner of management and budget determines
81.34that the credit rating of the state would be adversely affected thereby, the commissioner of
82.1management and budget shall not issuewarrants payments under subdivision 2 for the
82.2payment of principal or interest on any debt obligations for which a district did not, prior
82.3to their issuance, obligate itself to be bound by the provisions of this section.
82.4 Sec. 36. Minnesota Statutes 2016, section 126C.68, subdivision 3, is amended to read:
82.5 Subd. 3.Warrant Payment. The commissioner shall issue to each district whose note
82.6has been so received awarrant payment on the debt service loan account of the maximum
82.7effort school loan fund, payable on presentation to the commissioner of management and
82.8budget out of any money in such account. Thewarrant payment shall be issued by the
82.9commissioner in sufficient time to coincide with the next date on which the district is
82.10obligated to make principal or interest payments on its bonded debt in the ensuing year.
82.11Interest must accrue from the date suchwarrant payment is issued. The proceeds thereof
82.12must be used by the district to pay principal or interest on its bonded debt falling due in the
82.13ensuing year.
82.14 Sec. 37. Minnesota Statutes 2016, section 126C.69, subdivision 14, is amended to read:
82.15 Subd. 14. Participation by county auditor; record of contract; payment of loan. The
82.16district must file a copy of the capital loan contract with the county auditor of each county
82.17in which any part of the district is situated. The county auditor shall enter the capital loan,
82.18evidenced by the contract, in the auditor's bond register. The commissioner shall keep a
82.19record of each capital loan and contract showing the name and address of the district, the
82.20date of the contract, and the amount of the loan initially approved. On receipt of the resolution
82.21required in subdivision 12, the commissioner shall issuewarrants payments, which may be
82.22dispersed in accordance with the schedule in the contract, on the capital loan account for
82.23the amount that may be disbursed under subdivision 1. Interest on each disbursement of the
82.24capital loan amount accrues from the date on which the commissioner of management and
82.25budget issues thewarrant payment.
82.26 Sec. 38. Minnesota Statutes 2016, section 127A.34, subdivision 1, is amended to read:
82.27 Subdivision 1. Copy to commissioner of management and budget; appropriation.
82.28The commissioner shall furnish a copy of the apportionment of the school endowment fund
82.29to the commissioner of management and budget, who thereupon shalldraw warrants on
82.30issue payments from the state treasury, payable to the several districts, for the amount due
82.31each district. There is hereby annually appropriated from the school endowment fund the
82.32amount of such apportionments.
83.1 Sec. 39. Minnesota Statutes 2016, section 127A.40, is amended to read:
83.2127A.40 MANNER OF PAYMENT OF STATE AIDS.
83.3It shall be the duty of the commissioner to deliver to the commissioner of management
83.4and budget a certificate for each district entitled to receive state aid under the provisions of
83.5this chapter. Upon the receipt of such certificate, it shall be the duty of the commissioner
83.6of management and budget todraw a warrant in favor of issue a payment to the district for
83.7the amount shown by each certificate to be due to the district. The commissioner of
83.8management and budget shall transmit suchwarrants payments to the district together with
83.9a copy of the certificate prepared by the commissioner.
83.10 Sec. 40. Minnesota Statutes 2016, section 136F.46, subdivision 1, is amended to read:
83.11 Subdivision 1. Request;warrant payment. The commissioner of management and
83.12budget, upon the written request of an employee of the board, may deduct from an employee's
83.13salary or wages the amount requested for payment to a nonprofit state college or university
83.14foundation meeting the requirements in subdivision 2. The commissioner shall issue a
83.15warrant payment for the deducted amount to the nonprofit foundation. The Penny Fellowship
83.16and the Nellie Stone Johnson Scholarship Program of the Minnesota State University Student
83.17Association shall be considered nonprofit state college and university foundations for
83.18purposes of this section.
83.19 Sec. 41. Minnesota Statutes 2016, section 136F.70, subdivision 3, is amended to read:
83.20 Subd. 3. Refunds. The board may make refunds to students for tuition, activity fees,
83.21union fees, and any other fees from imprest cash funds. The imprest cash fund shall be
83.22reimbursed periodically bychecks or warrants drawn on payments issued from the funds
83.23and accounts to which the refund should ultimately be charged. The amounts necessary to
83.24pay the refunds are appropriated from the funds and accounts to which they are charged.
83.25 Sec. 42. Minnesota Statutes 2016, section 162.08, subdivision 10, is amended to read:
83.26 Subd. 10. Project approval, reports. When the county board of any county determines
83.27to do any construction work on a county state-aid highway or other road eligible for the
83.28expenditure of state aid funds within the county, and desires to expend on such work a
83.29portion of the money apportioned or allocated to it out of the county state-aid highway fund,
83.30the county shall first obtain approval of the project by the commissioner. Thereafter the
83.31county engineer shall make such reports in such manner as the commissioner requires under
83.32rules of the commissioner. Upon receipt of satisfactory reports, the commissioner shall
84.1certify to the commissioner of management and budget the amount of money that is eligible
84.2to be paid from the county's apportionment or allocation for the work under contract or
84.3actually completed. The commissioner of management and budget shall thereupon issue a
84.4warrant payment in that amount payable to the county treasurer. In no event shall the warrant
84.5payment with all otherwarrants payments issued exceed the amount apportioned and
84.6allocated to the county.
84.7 Sec. 43. Minnesota Statutes 2016, section 162.08, subdivision 11, is amended to read:
84.8 Subd. 11. Certification required to issuewarrants payment. The commissioner of
84.9management and budget shall not issue anywarrants payments without the certification of
84.10the commissioner.
84.11 Sec. 44. Minnesota Statutes 2016, section 162.14, subdivision 4, is amended to read:
84.12 Subd. 4. Project approval and reports. When the governing body of any such city
84.13determines to do any construction work on any municipal state-aid street or other streets
84.14within the city upon which money apportioned out of the municipal state-aid street fund
84.15may be used as provided in subdivision 2, the governing body shall first obtain the approval
84.16of the commissioner. Thereafter, the engineer of the city shall make reports in such manner
84.17as the commissioner requires in accordance with the commissioner's rules. Upon receipt of
84.18satisfactory reports the commissioner shall certify to the commissioner of management and
84.19budget the amount of money that is eligible to be paid from the city's apportionment for the
84.20work under contract or actually completed. The commissioner of management and budget
84.21shall thereupon issue awarrant payment in that amount payable to the fiscal officers of the
84.22city. In no event shall thewarrant payment with all other warrants payments issued exceed
84.23the amount apportioned to the city.
84.24 Sec. 45. Minnesota Statutes 2016, section 162.14, subdivision 5, is amended to read:
84.25 Subd. 5. Certification required to issuewarrant payment. The commissioner of
84.26management and budget shall not issue anywarrants payments as provided for in subdivision
84.274 without the prior certification of the commissioner.
84.28 Sec. 46. Minnesota Statutes 2016, section 162.18, subdivision 4, is amended to read:
84.29 Subd. 4. Certification to commissioner of money required. Any municipality issuing
84.30and selling bonds pursuant to this section shall certify to the commissioner the amount of
84.31money required annually for the payment of principal and interest on the obligation. Upon
85.1receipt thereof, the commissioner shall certify to the commissioner of management and
85.2budget the sum of money needed annually by the municipality for the principal and interest,
85.3provided that the amount certified by the commissioner shall not exceed the limit heretofore
85.4specified. The commissioner of management and budget shall thereafter, until said bonds
85.5are retired, issue awarrant payment annually in the amount certified payable to the fiscal
85.6officer of the municipality, and the amount thereof shall be deposited by the fiscal officer
85.7in the sinking fund from which the obligations are payable.
85.8 Sec. 47. Minnesota Statutes 2016, section 162.181, subdivision 4, is amended to read:
85.9 Subd. 4. Certification to commissioner of money required. Any county issuing and
85.10selling bonds pursuant to this section shall certify to the commissioner the amount of money
85.11required annually for the payment of principal and interest on the obligation. Upon receipt
85.12thereof, the commissioner shall certify to the commissioner of management and budget the
85.13sum of money needed annually by the county for the principal and interest, provided that
85.14the amount certified by the commissioner shall not exceed the limit heretofore specified.
85.15The commissioner of management and budget shall thereafter, until said bonds are retired,
85.16issue awarrant payment annually in the amount certified payable to the county treasurer of
85.17the county, and the amount thereof shall be deposited by the county treasurer in the sinking
85.18fund from which the obligations are payable.
85.19 Sec. 48. Minnesota Statutes 2016, section 163.051, subdivision 3, is amended to read:
85.20 Subd. 3. Distribution to county; appropriation. On a monthly basis, the registrar of
85.21motor vehicles shall issue awarrant payment in favor of the treasurer of each county for
85.22which the registrar has collected a wheelage tax in the amount of such tax then on hand in
85.23the county wheelage tax account. There is hereby appropriated from the county wheelage
85.24tax account each year, to each county entitled to payments authorized by this section,
85.25sufficient moneys to make such payments.
85.26 Sec. 49. Minnesota Statutes 2016, section 176.181, subdivision 2, is amended to read:
85.27 Subd. 2. Compulsory insurance; self-insurers. (a) Every employer, except the state
85.28and its municipal subdivisions, liable under this chapter to pay compensation shall insure
85.29payment of compensation with some insurance carrier authorized to insure workers'
85.30compensation liability in this state, or obtain a written order from the commissioner of
85.31commerce exempting the employer from insuring liability for compensation and permitting
85.32self-insurance of the liability. The terms, conditions and requirements governing
85.33self-insurance shall be established by the commissioner pursuant to chapter 14. The
86.1commissioner of commerce shall also adopt, pursuant to paragraph (d), rules permitting
86.2two or more employers, whether or not they are in the same industry, to enter into agreements
86.3to pool their liabilities under this chapter for the purpose of qualifying as group self-insurers.
86.4With the approval of the commissioner of commerce, any employer may exclude medical,
86.5chiropractic and hospital benefits as required by this chapter. An employer conducting
86.6distinct operations at different locations may either insure or self-insure the other portion
86.7of operations as a distinct and separate risk. An employer desiring to be exempted from
86.8insuring liability for compensation shall make application to the commissioner of commerce,
86.9showing financial ability to pay the compensation, whereupon by written order the
86.10commissioner of commerce, on deeming it proper, may make an exemption. An employer
86.11may establish financial ability to pay compensation by providing financial statements of
86.12the employer to the commissioner of commerce. Upon ten days' written notice the
86.13commissioner of commerce may revoke the order granting an exemption, in which event
86.14the employer shall immediately insure the liability. As a condition for the granting of an
86.15exemption the commissioner of commerce may require the employer to furnish security the
86.16commissioner of commerce considers sufficient to insure payment of all claims under this
86.17chapter, consistent with subdivision 2b. If the required security is in the form of currency
86.18or negotiable bonds, the commissioner of commerce shall deposit it with the commissioner
86.19of management and budget. In the event of any default upon the part of a self-insurer to
86.20abide by any final order or decision of the commissioner of labor and industry directing and
86.21awarding payment of compensation and benefits to any employee or the dependents of any
86.22deceased employee, then upon at least ten days' notice to the self-insurer, the commissioner
86.23of commerce may by written order to the commissioner of management and budget require
86.24the commissioner of management and budget to sell the pledged and assigned securities or
86.25a part thereof necessary to pay the full amount of any such claim or award with interest
86.26thereon. This authority to sell may be exercised from time to time to satisfy any order or
86.27award of the commissioner of labor and industry or any judgment obtained thereon. When
86.28securities are sold the money obtained shall be deposited in the state treasury to the credit
86.29of the commissioner of commerce and awards made against any such self-insurer by the
86.30commissioner of commerce shall be paid to the persons entitled thereto by the commissioner
86.31of management and budget uponwarrants prepared payments requested by the commissioner
86.32of commerce out of the proceeds of the sale of securities. Where the security is in the form
86.33of a surety bond or personal guaranty the commissioner of commerce, at any time, upon at
86.34least ten days' notice and opportunity to be heard, may require the surety to pay the amount
86.35of the award, the payments to be enforced in like manner as the award may be enforced.
87.1(b) No association, corporation, partnership, sole proprietorship, trust or other business
87.2entity shall provide services in the design, establishment or administration of a group
87.3self-insurance plan under rules adopted pursuant to this subdivision unless it is licensed, or
87.4exempt from licensure, pursuant to section60A.23, subdivision 8 , to do so by the
87.5commissioner of commerce. An applicant for a license shall state in writing the type of
87.6activities it seeks authorization to engage in and the type of services it seeks authorization
87.7to provide. The license shall be granted only when the commissioner of commerce is satisfied
87.8that the entity possesses the necessary organization, background, expertise, and financial
87.9integrity to supply the services sought to be offered. The commissioner of commerce may
87.10issue a license subject to restrictions or limitations, including restrictions or limitations on
87.11the type of services which may be supplied or the activities which may be engaged in. The
87.12license is for a two-year period.
87.13(c) To assure that group self-insurance plans are financially solvent, administered in a
87.14fair and capable fashion, and able to process claims and pay benefits in a prompt, fair and
87.15equitable manner, entities licensed to engage in such business are subject to supervision
87.16and examination by the commissioner of commerce.
87.17(d) To carry out the purposes of this subdivision, the commissioner of commerce may
87.18promulgate administrative rules pursuant to sections14.001 to
14.69 . These rules may:
87.19(1) establish reporting requirements for administrators of group self-insurance plans;
87.20(2) establish standards and guidelines consistent with subdivision 2b to assure the
87.21adequacy of the financing and administration of group self-insurance plans;
87.22(3) establish bonding requirements or other provisions assuring the financial integrity
87.23of entities administering group self-insurance plans;
87.24(4) establish standards, including but not limited to minimum terms of membership in
87.25self-insurance plans, as necessary to provide stability for those plans;
87.26(5) establish standards or guidelines governing the formation, operation, administration,
87.27and dissolution of self-insurance plans; and
87.28(6) establish other reasonable requirements to further the purposes of this subdivision.
87.29 Sec. 50. Minnesota Statutes 2016, section 176.581, is amended to read:
87.30176.581 PAYMENT TO STATE EMPLOYEES.
87.31Upon awarrant request prepared by the commissioner of administration, and in
87.32accordance with the terms of the order awarding compensation, the commissioner of
88.1management and budget shall pay compensation to the employee or the employee's
88.2dependent. These payments shall be made from money appropriated for this purpose.
88.3 Sec. 51. Minnesota Statutes 2016, section 176.591, subdivision 3, is amended to read:
88.4 Subd. 3. Compensation payments uponwarrants request. The commissioner of
88.5management and budget shall make compensation payments from the fund only as authorized
88.6by this chapter uponwarrants request of the commissioner of administration.
88.7 Sec. 52. Minnesota Statutes 2016, section 192.55, is amended to read:
88.8192.55 PAYMENTS TO BE MADE THROUGH ADJUTANT GENERAL.
88.9All pay and allowances and necessary expenses for any of the military forces shall, when
88.10approved by the adjutant general, be paid by the commissioner of management andbudget's
88.11warrants issued budget to the several officers and enlisted members entitled thereto; provided,
88.12that upon the request of the adjutant general, approved by the governor, the sum required
88.13for any such pay or allowances and necessary expenses shall be paid by the commissioner
88.14of management andbudget's warrant budget to the adjutant general, who shall immediately
88.15pay and distribute the same to the several officers or enlisted members entitled thereto or
88.16to their commanding officers or to a finance officer designated by the adjutant general. The
88.17receipt of any such commanding officer or finance officer for any such payment shall
88.18discharge the adjutant general from liability therefor. Every commanding officer or finance
88.19officer receiving any such payment shall, as soon as practicable, pay and distribute the same
88.20to the several officers or enlisted members entitled thereto. The officer making final payment
88.21shall, as evidence thereof, secure the signature of the person receiving the same upon a
88.22payroll or other proper voucher.
88.23 Sec. 53. Minnesota Statutes 2016, section 196.052, is amended to read:
88.24196.052 GIFT ACCEPTANCE AND INVESTMENT.
88.25On the behalf of the state, the commissioner may accept any gift, grant, bequest, or
88.26devise made for the purposes of this chapter and chapter 197. The commissioner must
88.27administer the funds as directed by the donor. All funds must be deposited in the state
88.28treasury and credited to the veterans affairs endowment, bequest, and devises fund. The
88.29balance of the fund is annually appropriated to the commissioner of veterans affairs to
88.30accomplish the purposes of this chapter and chapter 197. Funds received by the commissioner
88.31under this section in excess of current needs must be invested by the State Board of
88.32Investment in accordance with section11A.24 . Disbursements from this fund must be in
89.1the manner provided for the issuance of other statewarrants payments. The commissioner
89.2may refuse to accept any gift, grant, bequest, or devise if acceptance would not be in the
89.3best interest of the state or Minnesota's veterans.
89.4 Sec. 54. Minnesota Statutes 2016, section 198.16, is amended to read:
89.5198.16 PLANNED GIVING.
89.6The commissioner is authorized to accept on behalf of the state any gift, grant, bequest,
89.7or devise made for the purposes of this chapter, and administer the same as directed by the
89.8donor. All proceeds therefrom including money derived from the sale of any real or personal
89.9property must be deposited in the state treasury, invested by the State Board of Investment
89.10in accordance with sections11A.24 and
11A.25 , and credited to the Minnesota veterans
89.11home endowment, bequest, and devises fund. That fund consists of separate accounts for
89.12investing general and restricted gifts, money, and donations received and for any currently
89.13expendable proceeds.
89.14The commissioner shall maintain records of all gifts received, clearly showing the identity
89.15of the donor, the purpose of the donation, and the ultimate disposition of the donation. Each
89.16donation must be duly receipted and must be expended or used by the commissioner as
89.17nearly in accordance with the condition of the gift or donation as is compatible with the
89.18best interests of the residents of the homes. Money in the fund is appropriated to the
89.19commissioner for the purposes for which it was received. Disbursements from this fund
89.20shall be made in the manner provided for the issuance of other statewarrants payments.
89.21Whenever the commissioner shall deem it advisable, in accordance with law, to sell or
89.22otherwise dispose of any real or personal property thus acquired, the commissioner of
89.23administration upon the request of the commissioner shall sell or otherwise dispose of said
89.24property in the manner provided by law for the sale or disposition of other state property
89.25by the commissioner of administration.
89.26 Sec. 55. Minnesota Statutes 2016, section 237.30, is amended to read:
89.27237.30 TELEPHONE INVESTIGATION FUND; APPROPRIATION.
89.28A Minnesota Telephone Investigation Fund shall exist for the use of the Department of
89.29Commerce and of the attorney general in investigations, valuations, and revaluations under
89.30section237.295 . All sums paid by the telephone companies to reimburse the department
89.31for its expenses pursuant to section237.295 shall be credited to the revolving fund and shall
89.32be deposited in a separate bank account and not commingled with any other state funds or
90.1moneys, but any balance in excess of $25,000 in the revolving fund at the end of each fiscal
90.2year shall be paid into the state treasury and credited to the general fund. All subsequent
90.3credits to said revolving fund shall be paidupon the warrant of by the commissioner of
90.4management and budget upon application of the department or of the attorney general to
90.5an aggregate amount of not more than one-half of such sums to each of them, which
90.6proportion shall be constantly maintained in all credits and withdrawals from the revolving
90.7fund.
90.8 Sec. 56. Minnesota Statutes 2016, section 241.13, subdivision 1, is amended to read:
90.9 Subdivision 1. Contingent account. The commissioner of corrections may permit a
90.10contingent account to remain in the hands of the accounting officer of any such institution
90.11from which expenditures may be made in case of actual emergency requiring immediate
90.12payment to prevent loss or danger to the institution or its inmates and for the purpose of
90.13paying freight, purchasing produce, livestock and other commodities requiring a cash
90.14settlement, and for the purpose of discounting bills incurred, but in all cases subject to
90.15revision by the commissioner of corrections. An itemized statement of every expenditure
90.16made during the month from such account shall be submitted to the commissioner under
90.17rules established by the commissioner. If necessary, the commissioner shall make proper
90.18requisition upon the commissioner of management and budget for awarrant payment to
90.19secure the contingent account for each institution.
90.20 Sec. 57. Minnesota Statutes 2016, section 244.19, subdivision 7, is amended to read:
90.21 Subd. 7. Certificate of counties entitled to state aid. On or before January 1 of each
90.22year, until 1970 and on or before April 1 thereafter, the commissioner of corrections shall
90.23deliver to the commissioner of management and budget a certificate in duplicate for each
90.24county of the state entitled to receive state aid under the provisions of this section. Upon
90.25the receipt of such certificate, the commissioner of management and budget shalldraw a
90.26warrant in favor of issue a payment to the county treasurer for the amount shown by each
90.27certificate to be due to the county specified. The commissioner of management and budget
90.28shall transmit suchwarrant payment to the county treasurer together with a copy of the
90.29certificate prepared by the commissioner of corrections.
90.30 Sec. 58. Minnesota Statutes 2016, section 256B.20, is amended to read:
90.31256B.20 COUNTY APPROPRIATIONS.
91.1The providing of funds necessary to carry out the provisions hereof on the part of the
91.2counties and the manner of administering the funds of the counties and the state shall be as
91.3follows:
91.4(1) The board of county commissioners of each county shall annually set up in its budget
91.5an item designated as the county medical assistance fund and levy taxes and fix a rate
91.6therefor sufficient to produce the full amount of such item, in addition to all other tax levies
91.7and tax rate, however fixed or determined, sufficient to carry out the provisions hereof and
91.8sufficient to pay in full the county share of assistance and administrative expense for the
91.9ensuing year; and annually on or before October 10 shall certify the same to the county
91.10auditor to be entered by the auditor on the tax rolls. Such tax levy and tax rate shall make
91.11proper allowance and provision for shortage in tax collections.
91.12(2) Any county may transfer surplus funds from any county fund, except the sinking or
91.13ditch fund, to the general fund or to the county medical assistance fund in order to provide
91.14money necessary to pay medical assistance awarded hereunder. The money so transferred
91.15shall be used for no other purpose, but any portion thereof no longer needed for such purpose
91.16shall be transferred back to the fund from which taken.
91.17(3) Upon the order of the county agency the county auditor shall draw a warrant on the
91.18proper fund in accordance with the order, and the county treasurer shall pay out the amounts
91.19ordered to be paid out as medical assistance hereunder. When necessary by reason of failure
91.20to levy sufficient taxes for the payment of the medical assistance in the county, the county
91.21auditor shall carry any such payments as an overdraft on the medical assistance funds of
91.22the county until sufficient tax funds shall be provided for such assistance payments. The
91.23board of county commissioners shall include in the tax levy and tax rate in the year following
91.24the year in which such overdraft occurred, an amount sufficient to liquidate such overdraft
91.25in full.
91.26(4) Claims for reimbursement and reports shall be presented to the state agency by the
91.27respective counties as required under section256.01, subdivision 2 , paragraph (p). The state
91.28agency shall audit such claims and certify to the commissioner of management and budget
91.29the amounts due the respective counties without delay. The amounts so certified shall be
91.30paid within ten days after such certification, from the state treasury uponwarrant payment
91.31of the commissioner of management and budget from any money available therefor. The
91.32money available to the state agency to carry out the provisions hereof, including all federal
91.33funds available to the state, shall be kept and deposited by the commissioner of management
91.34and budget in the revenue fund and disbursedupon warrants in the same manner as other
91.35state funds.
92.1 Sec. 59. Minnesota Statutes 2016, section 260B.331, subdivision 2, is amended to read:
92.2 Subd. 2. Cost of group foster care. Whenever a child is placed in a group foster care
92.3facility as provided in section260B.198, subdivision 1 , clause (2) or (3), item (v), the cost
92.4of providing the care shall, upon certification by the juvenile court, be paid from the welfare
92.5fund of the county in which the proceedings were held. To reimburse the counties for the
92.6costs of providing group foster care for delinquent children and to promote the establishment
92.7of suitable group foster homes, the state shall quarterly, from funds appropriated for that
92.8purpose, reimburse counties 50 percent of the costs not paid by federal and other available
92.9state aids and grants. Reimbursement shall be prorated if the appropriation is insufficient.
92.10The commissioner of corrections shall establish procedures for reimbursement and certify
92.11to the commissioner of management and budget each county entitled to receive state aid
92.12under the provisions of this subdivision. Upon receipt of a certificate the commissioner of
92.13management and budget shall issue a statewarrant payment to the county treasurer for the
92.14amount due, together with a copy of the certificate prepared by the commissioner of
92.15corrections.
92.16 Sec. 60. Minnesota Statutes 2016, section 260C.331, subdivision 2, is amended to read:
92.17 Subd. 2. Cost of group foster care. Whenever a child is placed in a group foster care
92.18facility as provided in section260C.201, subdivision 1, paragraph (b), clause (2) or (3) , the
92.19cost of providing the care shall, upon certification by the juvenile court, be paid from the
92.20welfare fund of the county in which the proceedings were held. To reimburse the counties
92.21for the costs of promoting the establishment of suitable group foster homes, the state shall
92.22quarterly, from funds appropriated for that purpose, reimburse counties 50 percent of the
92.23costs not paid by federal and other available state aids and grants. Reimbursement shall be
92.24prorated if the appropriation is insufficient.
92.25The commissioner of corrections shall establish procedures for reimbursement and certify
92.26to the commissioner of management and budget each county entitled to receive state aid
92.27under the provisions of this subdivision. Upon receipt of a certificate the commissioner of
92.28management and budget shall issue a statewarrant payment to the county treasurer for the
92.29amount due, together with a copy of the certificate prepared by the commissioner of
92.30corrections.
92.31 Sec. 61. Minnesota Statutes 2016, section 273.121, subdivision 1, is amended to read:
92.32 Subdivision 1. Notice. Any county assessor or city assessor having the powers of a
92.33county assessor, valuing or classifying taxable real property shall in each year notify those
93.1persons whose property is to be included on the assessment roll that year if the person's
93.2address is known to the assessor, otherwise the occupant of the property. The notice shall
93.3be in writing and shall be sent by ordinary mail at least ten days before the meeting of the
93.4local board of appeal and equalization under section274.01 or the review process established
93.5under section274.13, subdivision 1c . Upon written request by the owner of the property,
93.6the assessor may send the notice in electronic form or by electronic mail instead of on paper
93.7or by ordinary mail. It shall contain: (1) the market value for the current and prior assessment,
93.8(2) the qualifying amount of any improvements under section273.11, subdivision 16 , for
93.9the current assessment, (3) the market value subject to taxation after subtracting the amount
93.10of any qualifying improvements for the current assessment, (4) the classification of the
93.11property for the current and prior assessment, (5) the assessor's office address, and (6) the
93.12dates, places, and times set for the meetings of the local board of appeal and equalization,
93.13the review process established under section274.13, subdivision 1c , and the county board
93.14of appeal and equalization. If the classification of the property has changed between the
93.15current and prior assessments, a specific note to that effect shall be prominently listed on
93.16the statement. The commissioner of revenue shall specify the form of the notice. The assessor
93.17shall attach to the assessment roll a statement that the notices required by this section have
93.18been mailed. Any assessor who is not provided sufficient funds from the assessor's governing
93.19body to provide such notices, may make application to the commissioner of revenue to
93.20finance such notices. The commissioner of revenue shall conduct an investigation and, if
93.21satisfied that the assessor does not have the necessary funds, issue a certification to the
93.22commissioner of management and budget of the amount necessary to provide such notices.
93.23The commissioner of management and budget shall issue awarrant payment for such amount
93.24and shall deduct such amount from any state payment to such county or municipality. The
93.25necessary funds to make such payments are hereby appropriated. Failure to receive the
93.26notice shall in no way affect the validity of the assessment, the resulting tax, the procedures
93.27of any board of review or equalization, or the enforcement of delinquent taxes by statutory
93.28means.
93.29 Sec. 62. Minnesota Statutes 2016, section 287.08, is amended to read:
93.30287.08 TAX, HOW PAYABLE; RECEIPTS.
93.31 (a) The tax imposed by sections287.01 to
287.12 must be paid to the treasurer of any
93.32county in this state in which the real property or some part is located at or before the time
93.33of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and
93.34the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes
93.35any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall
94.1be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from
94.2taxation the endorsement shall, in substance, be "exempt from registration tax." In either
94.3case the receipt must be signed by the treasurer. In case the treasurer is unable to determine
94.4whether a claim of exemption should be allowed, the tax must be paid as in the case of a
94.5taxable mortgage. For documents submitted electronically, the endorsements and tax amount
94.6shall be affixed electronically and no signature by the treasurer will be required. The actual
94.7payment method must be arranged in advance between the submitter and the receiving
94.8county.
94.9 (b) The county treasurer may refund in whole or in part any mortgage registry tax
94.10overpayment if a written application by the taxpayer is submitted to the county treasurer
94.11within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
94.12of the application, the taxpayer may bring an action in Tax Court in the county in which
94.13the tax was paid at any time after the expiration of six months from the time that the
94.14application was submitted. A denial of refund may be appealed within 60 days from the
94.15date of the denial by bringing an action in Tax Court in the county in which the tax was
94.16paid. The action is commenced by the serving of a petition for relief on the county treasurer,
94.17and by filing a copy with the court. The county attorney shall defend the action. The county
94.18treasurer shall notify the treasurer of each county that has or would receive a portion of the
94.19tax as paid.
94.20 (c) If the county treasurer determines a refund should be paid, or if a refund is ordered
94.21by the court, the county treasurer of each county that actually received a portion of the tax
94.22shall immediately pay a proportionate share of three percent of the refund using any available
94.23county funds. The county treasurer of each county that received, or would have received,
94.24a portion of the tax shall also pay their county's proportionate share of the remaining 97
94.25percent of the court-ordered refund on or before the 20th day of the following month using
94.26solely the mortgage registry tax funds that would be paid to the commissioner of revenue
94.27on that date under section287.12 . If the funds on hand under this procedure are insufficient
94.28to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in
94.29which the action was brought shall file a claim with the commissioner of revenue under
94.30section16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the
94.31remaining portion upon receipt of awarrant payment from the state issued pursuant to the
94.32claim.
94.33 (d) When any mortgage covers real property located in more than one county in this
94.34state the total tax must be paid to the treasurer of the county where the mortgage is first
94.35presented for recording, and the payment must be receipted as provided in paragraph (a).
95.1If the principal debt or obligation secured by such a multiple county mortgage exceeds
95.2$10,000,000, the nonstate portion of the tax must be divided and paid over by the county
95.3treasurer receiving it, on or before the 20th day of each month after receipt, to the county
95.4or counties entitled in the ratio that the estimated market value of the real property covered
95.5by the mortgage in each county bears to the estimated market value of all the real property
95.6in this state described in the mortgage. In making the division and payment the county
95.7treasurer shall send a statement giving the description of the real property described in the
95.8mortgage and the estimated market value of the part located in each county. For this purpose,
95.9the treasurer of any county may require the treasurer of any other county to certify to the
95.10former the estimated market value of any tract of real property in any mortgage.
95.11 (e) The mortgagor must pay the tax imposed by sections287.01 to
287.12 . The mortgagee
95.12may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee
95.13collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee
95.14has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax
95.15collected for that purpose and the mortgagor is relieved of any further obligation to pay the
95.16tax as to the amount collected by the mortgagee for this purpose.
95.17 Sec. 63. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:
95.18 Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct a
95.19surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
95.20premiums, less return premiums, on all direct business received by any licensed foreign or
95.21domestic fire insurance company on property in a city of the first class, or by its agents for
95.22it, in cash or otherwise.
95.23(b) By July 31 and December 31 of each year, the commissioner of management and
95.24budget shallpay issue to each city of the first class a warrant payment for an amount equal
95.25to the total amount of the surcharge on the premiums collected within that city since the
95.26previous payment.
95.27(c) The treasurer of the city shall place the money received under this subdivision in a
95.28special account or fund to defray all or a portion of the employer contribution requirement
95.29of public employees police and fire plan coverage for city firefighters.
95.30 Sec. 64. Minnesota Statutes 2016, section 299C.21, is amended to read:
95.31299C.21 PENALTY ON LOCAL OFFICER REFUSING INFORMATION.
96.1If any public official charged with the duty of furnishing to the bureau fingerprint records,
96.2biological specimens, reports, or other information required by sections299C.06 ,
299C.10 ,
96.3299C.105
,
299C.11 ,
299C.17 , shall neglect or refuse to comply with such requirement, the
96.4bureau, in writing, shall notify the state, county, or city officer charged with the issuance
96.5ofa warrant for the payment of the salary of such official. Upon the receipt of the notice
96.6the state, county, or city official shall withhold the issuance ofa warrant for the payment
96.7of the salary or other compensation accruing to such officer for the period of 30 days
96.8thereafter until notified by the bureau that such suspension has been released by the
96.9performance of the required duty.
96.10 Sec. 65. Minnesota Statutes 2016, section 348.05, is amended to read:
96.11348.05 COMMISSIONER OF MANAGEMENT AND BUDGET TO ISSUE
96.12WARRANT PAYMENT.
96.13The commissioner of management and budget shall audit all such claims, and, on the
96.14first Monday of October, in each year, shall issue awarrant payment to the several claimants
96.15for the amount to which each is entitled; but, if the aggregate of compensation due to all
96.16such claimants shall exceed the appropriation therefor, the commissioner shall distribute
96.17the available amount amongst them pro rata, which distribution shall relieve the state from
96.18further obligation to such claimants for the year.
96.19 Sec. 66. Minnesota Statutes 2016, section 352.04, subdivision 9, is amended to read:
96.20 Subd. 9. Erroneous deductions, canceledwarrants payments. (a) Deductions taken
96.21from the salary of an employee for the retirement fund in excess of required amounts must,
96.22upon discovery and verification by the department making the deduction, be refunded to
96.23the employee.
96.24(b) If a deduction for the retirement fund is taken from a salarywarrant or check payment,
96.25and thecheck payment is canceled or the amount of the warrant or check payment returned
96.26to the funds of the department making the payment, the sum deducted, or the part of it
96.27required to adjust the deductions, must be refunded to the department or institution if the
96.28department applies for the refund on a form furnished by the director. The department's
96.29payments must likewise be refunded to the department.
96.30(c) If erroneous employee deductions and employer contributions are caused by an error
96.31in plan coverage involving the plan and any other plans specified in section356.99 , that
96.32section applies. If the employee should have been covered by the plan governed by chapter
96.33352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken
97.1in error must be directly transferred to the applicable employee's account in the correct
97.2retirement plan, with interest at the rate of 0.71 percent per month until June 30, 2015, and
97.30.667 percent per month thereafter, compounded annually, from the first day of the month
97.4following the month in which coverage should have commenced in the correct defined
97.5contribution plan until the end of the month in which the transfer occurs.
97.6 Sec. 67. Minnesota Statutes 2016, section 352.05, is amended to read:
97.7352.05 COMMISSIONER OF MANAGEMENT AND BUDGET TO BE
97.8TREASURER OF SYSTEM.
97.9The commissioner of management and budget is ex officio treasurer of the retirement
97.10funds of the system. The general bond to the state shall cover all liability for actions as
97.11treasurer of these funds. Funds of the system received by the commissioner of management
97.12and budget must be set aside in the state treasury to the credit of the proper fund. The
97.13commissioner of management and budget shall deliver to the director copies of all payroll
97.14abstracts of the state together with the commissioner of management and budget'swarrants
97.15payments covering the deductions made on these payroll abstracts for the retirement fund.
97.16The director shall have a list made of the commissioner of management and budget'swarrants
97.17payments. Thesewarrants payments must then be credited to the retirement fund. The
97.18commissioner of management and budget shall pay out of this fund only upon abstracts
97.19signed by the director, or by the finance officer designated by the director during the disability
97.20or the absence of the director from the city of St. Paul, Minnesota. Abstracts for investments
97.21may be signed by the executive director of the State Board of Investment.
97.22 Sec. 68. Minnesota Statutes 2016, section 352.115, subdivision 12, is amended to read:
97.23 Subd. 12. Death, return ofwarrants payments. If at the time of death a retired
97.24employee, a disabled employee, or a survivor has in possession the commissioner of
97.25management and budget'swarrants payments covering a retirement annuity, disability
97.26benefit, or survivor benefit from the retirement fund, in the absence of probate proceedings,
97.27and upon the return of thewarrants payments for cancellation, payment of the accrued
97.28annuity or benefit, shall be made as provided in subdivision 11, or
352.12, subdivision 4 .
97.29Payments made under this subdivision shall be a bar to recovery by any other person or
97.30persons.
98.1 Sec. 69. Minnesota Statutes 2016, section 352.12, subdivision 13, is amended to read:
98.2 Subd. 13. Refund, beneficiary. If upon death a former employee has in possession a
98.3commissioner of management and budget'swarrant payment which does not exceed $1,000
98.4covering a refund of accumulated contributions in the retirement fund, in the absence of
98.5probate proceedings the commissioner of management and budget'swarrant payment may
98.6be returned for cancellation, and then upon application made by the last designated
98.7beneficiary of the deceased former employee, refund of the accumulated contributions must
98.8be paid to the last designated beneficiary. Payments made under this subdivision are a bar
98.9to recovery by any other person or persons.
98.10 Sec. 70. Minnesota Statutes 2016, section 353.05, is amended to read:
98.11353.05 CUSTODIAN OF FUNDS.
98.12The commissioner of management and budget shall be ex officio treasurer of the
98.13retirement funds of the association and the general bond of the commissioner of management
98.14and budget to the state must be so conditioned as to cover all liability for acts as treasurer
98.15of these funds. All money of the association received by the commissioner of management
98.16and budget must be set aside in the state treasury to the credit of the proper fund or account.
98.17The commissioner of management and budget shall transmit monthly to the executive
98.18director a detailed statement of all amounts so received and credited to the funds. Payments
98.19out of the funds may only be madeon warrants as payments issued by the commissioner of
98.20management and budget, upon abstracts signed by the executive director; provided that
98.21abstracts for investment may be signed by the executive director of the State Board of
98.22Investment.
98.23 Sec. 71. Minnesota Statutes 2016, section 353.27, subdivision 7, is amended to read:
98.24 Subd. 7. Adjustment for erroneous receipts or disbursements. (a) Except as provided
98.25in paragraph (b), erroneous employee deductions and erroneous employer contributions and
98.26additional employer contributions to the general employees retirement plan of the Public
98.27Employees Retirement Association or to the public employees police and fire retirement
98.28plan for a person who otherwise does not qualify for membership under this chapter, are
98.29considered:
98.30(1) valid if the initial erroneous deduction began before January 1, 1990. Upon
98.31determination of the error by the association, the person may continue membership in the
98.32association while employed in the same position for which erroneous deductions were taken,
99.1or file a written election to terminate membership and apply for a refund upon termination
99.2of public service or defer an annuity under section353.34 ; or
99.3(2) invalid, if the initial erroneous employee deduction began on or after January 1,
99.41990. Upon determination of the error, the association shall refund all erroneous employee
99.5deductions and all erroneous employer contributions as specified in paragraph (e). No person
99.6may claim a right to continued or past membership in the association based on erroneous
99.7deductions which began on or after January 1, 1990.
99.8(b) Erroneous deductions taken from the salary of a person who did not qualify for
99.9membership in the general employees retirement plan of the Public Employees Retirement
99.10Association or in the public employees police and fire retirement plan by virtue of concurrent
99.11employment before July 1, 1978, which required contributions to another retirement fund
99.12or relief association established for the benefit of officers and employees of a governmental
99.13subdivision, are invalid. Upon discovery of the error, allowable service credit for all invalid
99.14service if forfeited and, upon termination of public service, the association shall refund all
99.15erroneous employee deductions to the person, with interest as determined under section
99.16353.34, subdivision 2
, and all erroneous employer contributions without interest to the
99.17employer. This paragraph has both retroactive and prospective application.
99.18(c) Adjustments to correct employer contributions and employee deductions taken in
99.19error from amounts which are not salary under section353.01, subdivision 10 , must be
99.20made as specified in paragraph (e). The period of adjustment must be limited to the fiscal
99.21year in which the error is discovered by the association and the immediate two preceding
99.22fiscal years.
99.23(d) If there is evidence of fraud or other misconduct on the part of the employee or the
99.24employer, the board of trustees may authorize adjustments to the account of a member or
99.25former member to correct erroneous employee deductions and employer contributions on
99.26invalid salary and the recovery of any overpayments for a period longer than provided for
99.27under paragraph (c).
99.28(e) Upon discovery of the receipt of erroneous employee deductions and employer
99.29contributions under paragraph (a), clause (2), or paragraph (c), the association must require
99.30the employer to discontinue the erroneous employee deductions and erroneous employer
99.31contributions reported on behalf of a member. Upon discontinuation, the association must:
99.32(1) for a member, provide a refund in the amount of the invalid employee deductions
99.33with interest on the invalid employee deductions at the rate specified under section353.34,
100.1subdivision 2 , from the received date of each invalid salary transaction through the date the
100.2credit or refund is made;
100.3(2) for a former member who:
100.4(i) is not receiving a retirement annuity or benefit, return the erroneous employee
100.5deductions to the former member through a refund with interest at the rate specified under
100.6section353.34, subdivision 2 , from the received date of each invalid salary transaction
100.7through the date the credit or refund is made; or
100.8(ii) is receiving a retirement annuity or disability benefit, or a person who is receiving
100.9an optional annuity or survivor benefit, for whom it has been determined an overpayment
100.10must be recovered, adjust the payment amount and recover the overpayments as provided
100.11under this section; and
100.12(3) return the invalid employer contributions reported on behalf of a member or former
100.13member to the employer by providing a credit against future contributions payable by the
100.14employer.
100.15(f) In the event that a salarywarrant or check payment from which a deduction for the
100.16retirement fund was taken has been canceled or the amount of thewarrant or check payment
100.17returned to the funds of the department making the payment, a refund of the sum deducted,
100.18or any portion of it that is required to adjust the deductions, must be made to the department
100.19or institution.
100.20(g) If the association discovers that a retirement annuity, survivor benefit, or disability
100.21benefit has been incorrectly calculated by using invalid service or salary, or due to any
100.22erroneous calculation procedure, the association must recalculate the annuity or benefit
100.23payable and begin payment of the corrected annuity or benefit effective the first of the month
100.24following discovery of the error. Any overpayment resulting from the incorrect calculation
100.25must be recovered as provided under subdivision 7b, if the accrual date, or any adjustment
100.26in the amount of the annuity or benefit calculated after the accrual date, except adjustments
100.27required under section353.656, subdivision 4 , falls within the current fiscal year and the
100.28two immediate previous fiscal years.
100.29(h) Notwithstanding the provisions of this subdivision, the association may apply the
100.30Revenue Procedures defined in the federal Internal Revenue Service Employee Plans
100.31Compliance Resolution System and not issue a refund of erroneous employee deductions
100.32and employer contributions or not recover a small overpayment of benefits if the cost to
100.33correct the error would exceed the amount of the member refund or overpayment.
101.1(i) Any fees or penalties assessed by the federal Internal Revenue Service for any failure
101.2by an employer to follow the statutory requirements for reporting eligible members and
101.3salary must be paid by the employer.
101.4 Sec. 72. Minnesota Statutes 2016, section 354.42, subdivision 7, is amended to read:
101.5 Subd. 7. Erroneous salary deductions or direct payments. (a) Any deductions taken
101.6from the salary of an employee for the retirement fund in excess of amounts required must
101.7be refunded to the employee upon the discovery of the error and after the verification of
101.8the error by the employing unit making the deduction. The corresponding excess employer
101.9contribution and excess additional employer contribution amounts attributable to the
101.10erroneous salary deduction must be refunded to the employing unit.
101.11(b) If salary deductions and employer contributions were erroneously transmitted to the
101.12retirement fund and should have been transmitted to the plan covered by chapter 352D,
101.13353D, 354B, or 354D, the executive director must transfer these salary deductions and
101.14employer contributions to the account of the appropriate person under the applicable plan.
101.15The transfer to the applicable defined contribution plan account must include interest at the
101.16rate of 0.71 percent per month, compounded annually, from the first day of the month
101.17following the month in which coverage should have commenced in the defined contribution
101.18plan until the end of the month in which the transfer occurs.
101.19(c) A potential transfer under paragraph (b) that would cause the plan to fail to be a
101.20qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be
101.21made by the executive director. Within 30 days after being notified by the Teachers
101.22Retirement Association of an unmade potential transfer under this paragraph, the employer
101.23of the affected person must transmit an amount representing the applicable salary deductions
101.24and employer contributions, without interest, to the account of the applicable person under
101.25the appropriate plan. The retirement association must provide a credit for the amount of the
101.26erroneous salary deductions and employer contributions against future contributions from
101.27the employer.
101.28(d) If a salarywarrant or check payment from which a deduction for the retirement fund
101.29was taken has been canceled or the amount of thewarrant or if a check payment has been
101.30returned to the funds of the employing unit making the payment, a refund of the amount
101.31deducted, or any portion of it that is required to adjust the salary deductions, must be made
101.32to the employing unit.
101.33(e) Erroneous direct payments of member-paid contributions or erroneous salary
101.34deductions that were not refunded during the regular payroll cycle processing must be
102.1refunded to the member, plus interest computed using the rate and method specified in
102.2section354.49, subdivision 2 .
102.3(f) Any refund under this subdivision that would cause the plan to fail to be a qualified
102.4plan under section 401(a) of the Internal Revenue Code, as amended, may not be refunded
102.5and instead must be credited against future contributions payable by the employer. The
102.6employer is responsible for refunding to the applicable employee any amount that was
102.7erroneously deducted from the salary of the employee, with interest as specified in paragraph
102.8(e).
102.9(g) If erroneous employee deductions and employer contributions are caused by an error
102.10in plan coverage involving the plan and any other plan specified in section356.99 , that
102.11section applies.
102.12 Sec. 73. Minnesota Statutes 2016, section 354.52, subdivision 4, is amended to read:
102.13 Subd. 4. Reporting and remittance requirements. An employer shall remit all amounts
102.14due to the association and furnish a statement indicating the amount due and transmitted
102.15with any other information required by the executive director. If an amount due is not
102.16received by the association within 14 calendar days of the payrollwarrant payment, the
102.17amount accrues interest at an annual rate of 8.5 percent compounded annually from the due
102.18date until the amount is received by the association. All amounts due and other employer
102.19obligations not remitted within 60 days of notification by the association must be certified
102.20to the commissioner of management and budget who shall deduct the amount from any state
102.21aid or appropriation amount applicable to the employing unit.
102.22 Sec. 74. Minnesota Statutes 2016, section 354.52, subdivision 4b, is amended to read:
102.23 Subd. 4b. Payroll cycle reporting requirements. An employing unit shall provide the
102.24following data to the association for payrollwarrants payments on an ongoing basis within
102.2514 calendar days after the date of the payrollwarrant payments in a format prescribed by
102.26the executive director:
102.27(1) association member number;
102.28(2) employer-assigned employee number;
102.29(3) Social Security number;
102.30(4) amount of each salary deduction;
103.1(5) amount of salary as defined in section354.05, subdivision 35 , from which each
103.2deduction was made;
103.3(6) reason for payment;
103.4(7) the beginning and ending dates of the payroll period covered and the date of actual
103.5payment;
103.6(8) fiscal year of salary earnings;
103.7(9) total remittance amount including employee, employer, and additional employer
103.8contributions;
103.9(10) reemployed annuitant salary under section354.44, subdivision 5 ; and
103.10(11) other information as may be required by the executive director.
103.11 Sec. 75. Minnesota Statutes 2016, section 401.15, subdivision 1, is amended to read:
103.12 Subdivision 1. Certified statements; determinations; adjustments. Within 60 days
103.13of the end of each calendar quarter, participating counties which have received the payments
103.14authorized by section401.14 shall submit to the commissioner certified statements detailing
103.15the amounts expended and costs incurred in furnishing the correctional services provided
103.16in sections401.01 to
401.16 . Upon receipt of certified statements, the commissioner shall,
103.17in the manner provided in sections401.10 and
401.12 , determine the amount each
103.18participating county is entitled to receive, making any adjustments necessary to rectify any
103.19disparity between the amounts received pursuant to the estimate provided in section401.14
103.20and the amounts actually expended. If the amount received pursuant to the estimate is greater
103.21than the amount actually expended during the quarter, the commissioner may withhold the
103.22difference from any subsequent monthly payments made pursuant to section401.14 . Upon
103.23certification by the commissioner of the amount a participating county is entitled to receive
103.24under the provisions of section401.14 or of this subdivision the commissioner of
103.25management and budget shall thereupon issue astate warrant payment to the chief fiscal
103.26officer of each participating county for the amount due together with a copy of the certificate
103.27prepared by the commissioner.
103.28 Sec. 76. Minnesota Statutes 2016, section 446A.086, subdivision 4, is amended to read:
103.29 Subd. 4. Notifications; payment; appropriation. (a) After receipt of a notice of a
103.30default or potential default in payment of principal or interest in debt obligations covered
103.31by this section or an agreement under this section, and after consultation with the
103.32governmental unit and the paying agent, and after verification of the accuracy of the
104.1information provided, the authority shall notify the commissioner of the potential default.
104.2The notice must include a final figure as to the amount due that the governmental unit will
104.3be unable to repay on the date due.
104.4 (b) Upon receipt of this notice from the authority, the commissioner shall issue awarrant
104.5payment and authorize the authority to pay to the bond holders or paying agent for the debt
104.6obligation the specified amount on or before the date due. The amounts needed for the
104.7purposes of this subdivision are annually appropriated to the authority from the general
104.8fund.
104.9 Sec. 77. Minnesota Statutes 2016, section 446A.16, subdivision 1, is amended to read:
104.10 Subdivision 1. Functions of commissioner of management and budget. Except as
104.11otherwise provided in this section, money of the authority must be paid to the commissioner
104.12of management and budget as agent of the authority and the commissioner shall not
104.13commingle the money with other money. The money in the accounts of the authority must
104.14be paid out onlyon warrants drawn by the commissioner of management and budget on
104.15requisition of the chair of the authority or of another officer or employee as the authority
104.16authorizes. Deposits of the authority's money must, if required by the commissioner or the
104.17authority, be secured by obligations of the United States or of the state of a market value
104.18equal at all times to the amount of the deposit and all banks and trust companies are
104.19authorized to give security for the deposits.
104.20 Sec. 78. Minnesota Statutes 2016, section 462A.18, subdivision 1, is amended to read:
104.21 Subdivision 1. Functions of commissioner of management and budget. All moneys
104.22of the agency, except as otherwise authorized or provided in this section, shall be paid to
104.23the commissioner of management and budget as agent of the agency, who shall not
104.24commingle such moneys with any other moneys. The moneys in such accounts shall be
104.25paid outon warrants drawn by the commissioner on requisition of the chair of the agency
104.26or of such other officer or employee as the agency shall authorize to make such requisition.
104.27All deposits of such moneys shall, if required by the commissioner or the agency, be secured
104.28by obligations of the United States or of the state of a market value equal at all times to the
104.29amount of the deposit and all banks and trust companies are authorized to give such security
104.30for such deposits.
105.1 Sec. 79. Minnesota Statutes 2016, section 475A.04, subdivision 1, is amended to read:
105.2 Subdivision 1. Procedure. In the event that funds sufficient to pay all of the principal
105.3and interest due on any guaranteed bond are not in the hands of the municipal treasurer or
105.4the paying agent at least 15 days before the due date, the treasurer or agent shall report the
105.5amount of the deficiency to the paying agent and the auditor who shall grant a loan to the
105.6issuer in this amount and shall certify to the issuer, the paying agent, and the auditor and
105.7treasurer of each county in which property subject to taxation by the issuer is situated, the
105.8amount of the loan and interest to accrue thereon to the due date of the loan, and the
105.9commissioner of management and budget shall issue awarrant payment for the principal
105.10amount and shall remit it to the paying agent on or before the due date. If the municipal
105.11treasurer fails to deposit funds with the paying agent sufficient to pay all principal and
105.12interest due on any guaranteed bond on any date, without having previously given the notice
105.13herein required, the paying agent may report the amount of the deficiency to the
105.14commissioner of management and budget, who shall forthwith grant a loan to the issuer for
105.15this amount plus interest to accrue thereon for one month at the rate represented by the
105.16coupons then due, and the loan shall be certified and remitted as provided above. The paying
105.17agent may advance its own funds for the payment of any guaranteed bonds and interest due
105.18for which it has not received sufficient funds from the municipality, and may contract with
105.19the municipality to make such advances, and shall be entitled to reimbursement therefor
105.20from the proceeds of the loan, with interest at the rate represented by the coupons due. The
105.21issuing municipality shall give a receipt to the commissioner of management and budget
105.22for the amount of the loan and interest.
105.23 Sec. 80. Minnesota Statutes 2016, section 525.841, is amended to read:
105.24525.841 ESCHEAT RETURNED.
105.25In all such cases the commissioner of management and budget shall be furnished with
105.26a certified copy of the court's order assigning the escheated property to the persons entitled
105.27thereto, and upon notification of payment of the estate tax, the commissioner of management
105.28and budget shalldraw a warrant issue a payment or execute a proper conveyance to the
105.29persons designated in such order. In the event any escheated property has been sold pursuant
105.30to sections11A.04 , clause (9), and
11A.10, subdivision 2 , or
16B.281 to
16B.287 , then the
105.31warrant payment shall be for the appraised value as established during the administration
105.32of the decedent's estate. There is hereby annually appropriated from any moneys in the state
105.33treasury not otherwise appropriated an amount sufficient to make payment to all such
105.34designated persons. No interest shall be allowed on any amount paid to such persons.
106.3 Section 1. Minnesota Statutes 2016, section 3.842, subdivision 4a, is amended to read:
106.4 Subd. 4a. Objections to rules or proposed rules. (a) For purposes of this subdivision,
106.5"committee" means the house of representatives policy committee or senate policy committee
106.6with primary jurisdiction over state governmental operations. The commission or a committee
106.7may object to a rule or proposed rule as provided in this subdivision. If the commission or
106.8a committee objects to all or some portion of a rule because the commission or committee
106.9considers it to be on the grounds that the rule or proposed rule:
106.10(1) is beyond the procedural or substantive authority delegated to the agency, including
106.11a proposed rule submitted under section
14.15, subdivision 4, or
14.26, subdivision 3,
106.12paragraph (c);
106.13(2) is inconsistent with the enabling statute;
106.14(3) is unnecessary or redundant;
106.15(4) has a substantial economic impact as defined in section 14.02, subdivision 5;
106.16(5) is not based on sound, reasonably available scientific, technical, economic, or other
106.17information;
106.18(6) is not cost-effective;
106.19(7) is unduly burdensome; or
106.20(8) is more restrictive than the standard, limitation, or requirement imposed by federal
106.21law or rule pertaining to the same subject matter.
106.22If the commission or committee objects to all or some portion of a rule or proposed rule,
106.23the commission or committeemay shall file that objection in the Office of the Secretary of
106.24State. The filed objection must contain a concise statement of the commission's or
106.25committee's reasons for its action.An objection to a proposed rule submitted by the
106.26commission or a committee under section
14.15, subdivision 4, or
14.26, subdivision 3,
106.27paragraph (c), may not be filed before the rule is adopted For a proposed rule, the objection
106.28must be filed within 30 days of receipt of the notice under section 14.14, 14.22, 14.386,
106.2914.388, 14.389, or 14.3895.
106.30(b) The secretary of state shall affix to each objection a certification of the date and time
106.31of its filing and as soon after the objection is filed as practicable shall electronically transmit
106.32acertified copy of it to the agency issuing the rule in question and to the revisor of statutes.
107.1The secretary of state shall also maintain a permanent register open to public inspection of
107.2all objections by the commission or committee.
107.3(c) The commission or committee shall publish and index an objection filed under this
107.4section in the next issue of the State Register. The revisor of statutes shall indicate the
107.5existence of the objection adjacent to the rule in question when that rule is published in
107.6Minnesota Rules.
107.7(d) Within 14 days after the filing of an objection by the commission or committee to a
107.8rule or proposed rule, the issuing agency shall respond in writing to the objecting entity.
107.9After receipt of the response, the commission or committee may withdraw or modify its
107.10objection. After the filing of an objection that is not subsequently withdrawn, the agency
107.11may not adopt the rule until the legislature adjourns the annual legislative session that began
107.12after the objection was filed. If the commission files an objection that is not subsequently
107.13withdrawn, the commission may, as soon as practical, make a recommendation on a bill
107.14that approves the proposed rule, prohibits adoption of the proposed rule, or amends or repeals
107.15the law governing a previously adopted rule for which an objection was filed.
107.16(e) After the filing of an objection by the commission or committee that is not
107.17subsequently withdrawn, the burden is upon the agency in any proceeding for judicial review
107.18or for enforcement of the rule to establish that the whole or portion of the rule objected to
107.19is valid and demonstrates that the objection raised under paragraph (a) is not justified, based
107.20on the criteria for objecting to a rule under paragraph (a).
107.21(f) The failure of the commission or a committee to object to a rule is not an implied
107.22legislative authorization of its validity.
107.23(g) In accordance with sections14.44 and
14.45 , the commission or a committee may
107.24petition for a declaratory judgment to determine the validity of a rule objected to by the
107.25commission or committee. The action must be started within two years after an objection
107.26is filed in the Office of the Secretary of State.
107.27(h) The commission or a committee may intervene in litigation arising from agency
107.28action. For purposes of this paragraph, agency action means the whole or part of a rule, or
107.29the failure to issue a rule.
107.30 Sec. 2. Minnesota Statutes 2016, section 14.002, is amended to read:
107.3114.002 STATE REGULATORY POLICY.
107.32The legislature recognizes the important and sensitive role for administrative rules in
107.33implementing policies and programs created by the legislature. However, the legislature
108.1finds that some regulatory rules and programs have become overly prescriptive and inflexible,
108.2thereby increasing costs to the state, local governments, and the regulated community and
108.3decreasing the effectiveness of the regulatory program. Therefore,whenever feasible, state
108.4agencies must develop rules and regulatory programs that emphasize superior achievement
108.5in meeting the agency's regulatory objectives and maximum flexibility for the regulated
108.6party and the agency in meeting those goals.
108.7 Sec. 3. Minnesota Statutes 2016, section 14.02, is amended by adding a subdivision to
108.8read:
108.9 Subd. 5. Substantial economic impact. A rule has a "substantial economic impact" if
108.10the rule would result in, or likely result in:
108.11(1) an adverse effect or impact on the private-sector economy of the state of Minnesota
108.12of $5,000,000 or more in a single year;
108.13(2) a significant increase in costs or prices for consumers, individual private-sector
108.14industries, state agencies, local governments, individuals, or private-sector enterprises within
108.15certain geographic regions inside the state of Minnesota;
108.16(3) significant adverse impacts on the competitiveness of private-sector Minnesota-based
108.17enterprises, or on private-sector employment, investment, productivity, or innovation within
108.18the state of Minnesota; or
108.19(4) compliance costs, in the first year after the rule takes effect, of more than $25,000
108.20for any one business that has fewer than 50 full-time employees, or for any one statutory
108.21or home rule charter city that has fewer than ten full-time employees.
108.22 Sec. 4. Minnesota Statutes 2016, section 14.05, subdivision 1, is amended to read:
108.23 Subdivision 1. Authority to adopt original rules restricted. (a) Each agency shall
108.24adopt, amend, suspend, or repeal its rules:
108.25(1) in accordance with the procedures specified in sections14.001 to
14.69 , and;
108.26(2) only pursuant to authority delegated by law; and
108.27(3) in full compliance with its duties and obligations.
108.28(b) If a law authorizing rules is repealed, the rules adopted pursuant to that law are
108.29automatically repealed on the effective date of the law's repeal unless there is another law
108.30authorizing the rules.
109.1(c) Except as provided insection sections 14.055,
14.06 , 14.388, 14.389, and 14.3895,
109.2sections14.001 to
14.69 shall not be authority for an agency to adopt, amend, suspend, or
109.3repeal rules.
109.4 Sec. 5. Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to
109.5read:
109.6 Subd. 1a. Limitation regarding certain policies, guidelines, and other interpretive
109.7statements. An agency shall not seek to implement or enforce against any person a policy,
109.8guideline, or other interpretive statement that meets the definition of a rule under this chapter
109.9if the policy, guideline, or other interpretive statement has not been adopted as a rule in
109.10accordance with this chapter including but not limited to solid waste policy plan revisions
109.11authorized by other law. In any proceeding under chapter 14 challenging an agency action
109.12prohibited by this subdivision, the reviewing authority must independently and without
109.13deference to the agency determine if the agency has violated this subdivision. The agency
109.14must overcome the presumption that its action may not be enforced as a rule.
109.15 Sec. 6. Minnesota Statutes 2016, section 14.05, subdivision 2, is amended to read:
109.16 Subd. 2. Authority to modify proposed rule. (a) An agency may modify a proposed
109.17rule in accordance with the procedures of the Administrative Procedure Act. However, an
109.18agency may not modify a proposed rule so that it is substantially different from the proposed
109.19rule in the notice of intent to adopt rules or notice of hearing.
109.20(b) A modification does not make a proposed rule substantially different if:
109.21(1) the differences are within the scope of the matter announced in the notice of intent
109.22to adopt or notice of hearing and are in character with the issues raised in that notice;
109.23(2) the differences are a logical outgrowth of the contents of the notice of intent to adopt
109.24or notice of hearing and the comments submitted in response to the notice; and
109.25(3) the notice of intent to adopt or notice of hearing provided fair warning that the
109.26outcome of that rulemaking proceeding could be the rule in question.
109.27(c) In determining whether the notice of intent to adopt or notice of hearing provided
109.28fair warning that the outcome of that rulemaking proceeding could be the rule in question
109.29the following factors must be considered:
109.30(1) the extent to which persons who will be affected by the rule should have understood
109.31that the rulemaking proceeding on which it is based could affect their interests;
110.1(2) the extent to which the subject matter of the rule or issues determined by the rule are
110.2different from the subject matter or issues contained in the notice of intent to adopt or notice
110.3of hearing; and
110.4(3) the extent to which the effects of the rule differ from the effects of the proposed rule
110.5contained in the notice of intent to adopt or notice of hearing.
110.6(d) A modification makes a proposed rule substantially different if the modification
110.7causes a rule that did not previously have a substantial economic impact to have a substantial
110.8economic impact.
110.9 Sec. 7. Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to
110.10read:
110.11 Subd. 5a. Review and repeal of rules. By December 1 of each odd-numbered year,
110.12beginning December 1, 2017, an agency must submit to the governor, the Legislative
110.13Coordinating Commission, the policy and funding committees and divisions with jurisdiction
110.14over the agency, and the revisor of statutes, a list of any rules or portions of rules that are
110.15obsolete, unnecessary, or duplicative of other state or federal statutes or rules. The list must
110.16also include an explanation of why the rule or portion of the rule is obsolete, unnecessary,
110.17or duplicative of other state or federal statutes or rules. The agency must either report a
110.18timetable for repeal of the rule or portion of the rule, or must develop a bill for submission
110.19to the appropriate policy committee to repeal the obsolete, unnecessary, or duplicative rule.
110.20A report submitted under this subdivision must be signed by the person in the agency who
110.21is responsible for identifying and initiating repeal of obsolete rules. The report also must
110.22identify the status of any rules identified in the prior report as obsolete, unnecessary, or
110.23duplicative. If none of an agency's rules are obsolete, unnecessary, or duplicative, an agency's
110.24report must state that conclusion.
110.25 Sec. 8. Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to
110.26read:
110.27 Subd. 5b. Review and repeal of environmental assessment worksheets and impact
110.28statements. By December 1, 2017, and each odd-numbered year thereafter, the
110.29Environmental Quality Board, Pollution Control Agency, Department of Natural Resources,
110.30and Department of Transportation, after consultation with political subdivisions, shall submit
110.31to the governor, the Legislative Coordinating Commission, the chairs and ranking minority
110.32members of the house of representatives and senate committees having jurisdiction over
110.33environment and natural resources, and the revisor of statutes a list of mandatory
111.1environmental assessment worksheets or mandatory environmental impact statements for
111.2which the agency or a political subdivision is designated as the responsible government
111.3unit, and for each worksheet or statement, a document including:
111.4(1) intended outcomes of the specific worksheet or statement;
111.5(2) the cost to state and local government and the private sector;
111.6(3) the relationship of the worksheet or statement to other local, state, and federal permits;
111.7and
111.8(4) a justification for why the mandatory worksheet or statement should not be eliminated
111.9and its intended outcomes achieved through an existing permit or other federal, state, or
111.10local law.
111.11 Sec. 9. Minnesota Statutes 2016, section 14.05, subdivision 6, is amended to read:
111.12 Subd. 6. Veto of adopted rules. The governor may veto all or a severable portion of a
111.13rule of an agency as defined in section14.02 , subdivisions 2 and 4, by submitting notice of
111.14the veto to the State Register within 14 days of receiving a copy of the rule from the secretary
111.15of state under section14.16, subdivision 3 ,
14.26, subdivision 3 5 , or
14.386 , or the agency
111.16under section14.389, subdivision 3 , or section
14.3895 . The veto is effective when the veto
111.17notice is submitted to the State Register. This authority applies only to the extent that the
111.18agency itself would have authority, through rulemaking, to take such action. If the governor
111.19vetoes a rule or portion of a rule under this section, the governor shall notify the chairs of
111.20the legislative committees having jurisdiction over the agency whose rule was vetoed.
111.21 Sec. 10. Minnesota Statutes 2016, section 14.05, subdivision 7, is amended to read:
111.22 Subd. 7. Electronic documents permitted. (a) If sections 14.05 to 14.3895 require an
111.23agency to provide notice or documents to the public, the legislature, or other state agency,
111.24the agency may send the notice or document, or a link to the notice or document, using any
111.25reliable method of electronic transmission.
111.26(b) The agency must also send a paper copy of the notice or document if requested to
111.27do so by a member of the public, legislature, or other state agency.
111.28(c) An agency may file rule-related documents with the Office of Administrative Hearings
111.29by electronic transmission in the manner approved by that office and the Office of the
111.30Revisor of Statutes by electronic transmission in the manner approved by that office.
112.1 Sec. 11. Minnesota Statutes 2016, section 14.101, subdivision 1, is amended to read:
112.2 Subdivision 1. Required notice. In addition to seeking information by other methods
112.3designed to reach persons orclasses categories of persons who might be affected by the
112.4proposal, an agency, at least 60 days before publication of a notice of intent to adopt or a
112.5notice of hearing, shall solicit comments from the public on the subject matter of a possible
112.6rulemaking proposal under active consideration within the agency by causing notice to be
112.7published in the State Register. The notice must include a description of the subject matter
112.8of the proposal and the types of groups and individuals likely to be affected, and must
112.9indicate where, when, and how persons may comment on the proposal and whether and
112.10how drafts of any proposal may be obtained from the agency.
112.11This notice must be published within 60 days of the effective date of any new or
112.12amendatory law requiring rules to be adopted, amended, or repealed.
112.13An agency intending to adopt an expedited rule under section 14.389 is exempt from
112.14the requirements of this section.
112.15 Sec. 12. [14.105] RULE NOTIFICATION.
112.16 Subdivision 1. Rule notification list. (a) Each agency shall maintain a list of all persons
112.17who have registered with the agency for the purpose of receiving notice of rule proceedings.
112.18A person may register to receive notice of rule proceedings by submitting to the agency:
112.19(1) the person's electronic mail address; or
112.20(2) the person's name and United States mail address, along with a request to receive
112.21copies of the notices by mail.
112.22(b) The agency shall post information on its Web site describing the registration process.
112.23 (c) The agency may inquire as to whether those persons on the list in paragraph (a) wish
112.24to remain on it and may remove persons for whom there is a negative reply or no reply
112.25within 60 days.
112.26 Subd. 2. Additional notice. (a) Each agency shall make reasonable efforts to notify
112.27persons or categories of persons who may be significantly affected by the rule being proposed
112.28by giving notice of its rule proceedings in newsletters, newspapers, or other publications,
112.29or through other means of communication.
112.30(b) For each rulemaking, the agency shall develop an additional notice plan describing
112.31its efforts to provide additional notification to persons or categories of persons who may be
112.32affected by the proposed rule or must explain why these efforts were not made. The additional
113.1notice plan must be submitted to the administrative law judge with the other submissions
113.2required by section 14.14, subdivision 2a, or 14.26. The agency also may seek prior approval
113.3of the additional notice plan under the rules of the Office of Administrative Hearings.
113.4 Sec. 13. Minnesota Statutes 2016, section 14.116, is amended to read:
113.514.116 NOTICE TO LEGISLATURE.
113.6(a) By January 15 each year, each agency must submit its current rulemaking docket
113.7maintained under section14.366 , and the official rulemaking record required under section
113.814.365
for any rule adopted during the preceding calendar year, to the chairs and ranking
113.9minority members of the legislative policy and budget committees with jurisdiction over
113.10the subject matter of the proposed rule and to the Legislative Coordinating Commission.
113.11Each agency must post a link to its rulemaking docket on the agency Web site home page.
113.12(b) When an agencymails sends a notice of intent to adopt rules hearing under section
113.1314.14
or a notice of intent to adopt rules or dual notice under section
14.22 , the agency must
113.14send a copy of the same noticeand a copy of the statement of need and reasonableness to
113.15the chairs and ranking minority party members of the legislative policy and budget
113.16committees with jurisdiction over the subject matter of the proposed rules and to the
113.17Legislative Coordinating Commission.
113.18(c) In addition, if the mailing of the notice is within two years of the effective
date of
113.19the law granting the agency authority to adopt the proposed rules, the agency shall
make
113.20reasonable efforts to send a copy of the notice and the statement to all sitting legislators
113.21who were chief house of representatives and senate authors of the bill granting the
rulemaking
113.22authority. If the bill was amended to include this rulemaking authority, the agency
shall
113.23make reasonable efforts to send the notice and the statement to the chief house of
113.24representatives and senate authors of the amendment granting rulemaking authority,
rather
113.25than to the chief authors of the bill.
113.26 Sec. 14. Minnesota Statutes 2016, section 14.125, is amended to read:
113.2714.125 TIME LIMIT ON AUTHORITY TO ADOPT, AMEND, OR REPEAL
113.28RULES.
113.29An agency shall publish anotice of intent to adopt rules or a notice of hearing under
113.30section 14.14, or a notice of intent to adopt rules or dual notice under section 14.22, within
113.3118 months of the effective date of the law authorizing or requiring rules to be adopted,
113.32amended, or repealed. If the notice is not published within the time limit imposed by this
114.1section, theauthority for the rules expires. The agency shall not use other law in existence
114.2at the time of the expiration of rulemaking authority under this section as authority
to adopt,
114.3amend, or repeal these rules agency shall report to the Legislative Coordinating Commission,
114.4other appropriate committees of the legislature, and the governor its failure to publish a
114.5notice and the reasons for that failure.
114.6An agency that publishes a notice of intent to adopt rules or a notice of hearing
within
114.7the time limit specified in this section may subsequently amend or repeal the rules
without
114.8additional legislative authorization.
114.9 Sec. 15. Minnesota Statutes 2016, section 14.127, is amended to read:
114.1014.127 LEGISLATIVE APPROVAL REQUIRED.
114.11 Subdivision 1.Cost thresholds Substantial economic impact. An agency must
114.12determine ifthe cost of complying with a proposed rule in the first year after the rule takes
114.13effect will exceed $25,000 for: (1) any one business that has less than 50 full-time
employees;
114.14or (2) any one statutory or home rule charter city that has less than ten full-time
employees.
114.15For purposes of this section, "business" means a business entity organized for profit
or as
114.16a nonprofit, and includes an individual, partnership, corporation, joint venture,
association,
114.17or cooperative has a substantial economic impact, as defined in section 14.02, subdivision
114.185.
114.19 Subd. 2. Agency determination. An agency must make the determination required by
114.20subdivision 1 before theclose of the hearing record, or before the agency submits the record
114.21to the administrative law judge if there is no hearing. The administrative law judge
must
114.22review and approve or disapprove the agency determination under this section agency gives
114.23notice under section 14.14, 14.22, 14.225, or 14.389.
114.24 Subd. 3. Legislative approval required. (a) If the agency determines that a proposed
114.25rule has a substantial economic impact, the agency must request the legislative auditor to
114.26convene a five-person peer review advisory panel to conduct an impact analysis of the
114.27proposed rule. Within 30 days of receipt of the agency's request, the legislative auditor shall
114.28convene a peer review advisory panel. The advisory panel must be made up of individuals
114.29who have not directly or indirectly been involved in the work conducted or contracted by
114.30the agency and who are not employed by the agency. The agency must pay each panel
114.31member for the costs of the person's service on the panel, as determined by the legislative
114.32auditor. The agency shall transfer an amount from the agency's operating budget to the
114.33legislative auditor to pay for costs for convening the peer review advisory panel process.
114.34The panel may receive written and oral comments from the public during its review. The
115.1panel must submit its report within 60 days of being convened. The agency must receive a
115.2final report from the panel before the agency conducts a public hearing on a proposed rule
115.3or, if no hearing is held, before the rule is submitted to the administrative law judge. The
115.4panel's report must include its conclusions on the extent to which the proposed rule:
115.5(1) is based on sound, reasonably available scientific, technical, economic, or other
115.6information or rationale; and
115.7(2) is more restrictive than a standard, limitation, or requirement imposed by federal law
115.8or rule pertaining to the same subject matter, and a justification based on sound, reasonably
115.9available scientific, technical, economic, or other information and rationale that the more
115.10stringent standard is necessary to protect the public's health, safety, or welfare.
115.11(b) If the agency determines that a rule does not have a substantial economic impact,
115.12the administrative law judge must review this determination. If the administrative law judge
115.13determines that a rule may have a substantial economic impact, the agency must have the
115.14legislative auditor arrange for the analysis required by paragraph (a), and the agency must
115.15give new notice of intent to adopt the proposed rule after receiving this analysis. The
115.16administrative law judge may make this determination as part of the administrative law
115.17judge's report on the proposed rule, or at any earlier time after the administrative law judge
115.18is assigned to the rule proceeding.
115.19(c) If the agency determines that thecost exceeds the threshold in subdivision 1 proposed
115.20rule has a substantial economic impact, or if the administrative law judge disapproves the
115.21agency's determination that thecost rule does not exceed the threshold in subdivision 1,
115.22any business that has less than 50 full-time employees or any statutory or home rule
charter
115.23city that has less than ten full-time employees may file a written statement with
the agency
115.24claiming a temporary exemption from the rules. Upon filing of such a statement with
the
115.25agency, the rules do not apply to that business or that city until the rules are have a substantial
115.26economic impact, the agency or the administrative law judge shall deliver the determination
115.27and peer review advisory panel report to the Legislative Coordinating Commission and to
115.28the chairs and ranking minority members of the house of representatives and senate
115.29committees and divisions with jurisdiction over the subject matter of the rule, and the
115.30proposed rule does not take effect until the rule is approved by a law enacted after the agency
115.31determination or administrative law judge disapproval.
115.32 Subd. 4. Exceptions.(a) Subdivision 3 does not apply if the administrative law judge
115.33approves an agency's determination that the legislature has appropriated money to
sufficiently
116.1fund the expected cost of the rule upon the business or city proposed to be regulated
by the
116.2rule.
116.3(b) (a) Subdivision 3 does not apply if the administrative law judge approves an agency's
116.4determination that the rule has been proposed pursuant to a specific federal statutory or
116.5regulatory mandate.
116.6(c) (b) This section does not apply if the rule is adopted under section
14.388 or under
116.7another law specifying that the rulemaking procedures of this chapter do not apply.
116.8(d) (c) This section does not apply to a rule adopted by the Public Utilities Commission.
116.9(e) Subdivision 3 does not apply if the governor waives application of subdivision
3.
116.10The governor may issue a waiver at any time, either before or after the rule would
take
116.11effect, but for the requirement of legislative approval. As soon as possible after
issuing a
116.12waiver under this paragraph, the governor must send notice of the waiver to the speaker
of
116.13the house and the president of the senate and must publish notice of this determination
in
116.14the State Register.
116.15 Subd. 5. Severability. If an administrative law judge determines that part of a proposed
116.16ruleexceeds the threshold specified in subdivision 1 has a substantial economic impact, but
116.17that a severable portion of a proposed rule does notexceed the threshold in subdivision 1
116.18have a substantial economic impact, the administrative law judge may provide that the
116.19severable portion of the rule that does notexceed the threshold have a substantial economic
116.20impact may take effect without legislative approval.
116.21 Sec. 16. [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR
116.22REMODELING; LEGISLATIVE NOTICE AND REVIEW.
116.23 Subdivision 1. Definition. As used in this section, "residential construction" means the
116.24new construction or remodeling of any building subject to the Minnesota Residential Code.
116.25 Subd. 2. Impact on housing cost; agency determination. An agency must determine
116.26if implementation of a proposed rule, or any portion of a proposed rule, will, on average,
116.27increase the cost of residential construction or remodeling by $1,000 or more per unit. The
116.28agency must make this determination before the close of the hearing record. Upon request
116.29of a party affected by the proposed rule, an administrative law judge must review and
116.30approve or disapprove an agency's determination that any portion of a proposed rule will
116.31increase the cost of a dwelling unit by $1,000 or more.
116.32 Subd. 3. Notice to legislature; legislative approval. (a) If the agency determines that
116.33the impact of a proposed rule meets or exceeds the cost threshold provided in subdivision
117.12, or if the administrative law judge separately confirms the cost of any portion of a rule
117.2exceeds the cost threshold provided in subdivision 2, the agency must notify, in writing,
117.3the chairs and ranking minority members of the policy committees of the house of
117.4representatives and the senate with jurisdiction over the subject matter of the proposed rule
117.5within ten days of the determination.
117.6(b) If a committee of either the house of representatives or senate with jurisdiction over
117.7the subject matter of the proposed rule or a portion of a rule that meets or exceeds the
117.8threshold in subdivision 2 votes to advise an agency that the rule should not be adopted as
117.9proposed, the agency may not adopt the rule unless the rule is approved by a law enacted
117.10after the vote of the committee. Section 14.126, subdivision 2, applies to a vote of a
117.11committee under this subdivision.
117.12 Subd. 4. Severability. If the agency or an administrative law judge determines that part
117.13of a proposed rule meets or exceeds the threshold provided in subdivision 2, but that a
117.14severable portion of the proposed rule does not meet or exceed that threshold, the agency
117.15may proceed to adopt the severable portions of the proposed rule regardless of whether a
117.16legislative committee has voted under subdivision 3 to advise an agency that the rule should
117.17not be adopted as proposed.
117.18EFFECTIVE DATE.This section is effective August 1, 2017, and applies to
117.19administrative rules proposed on or after that date.
117.20 Sec. 17. [14.129] IMPACT ANALYSIS OF PROPOSED RULE.
117.21 Subdivision 1. Analysis. (a) Within 30 days of receipt of the notice required under
117.22section 14.116, paragraph (b), a standing committee with jurisdiction over the subject matter
117.23of a proposed rule may request the legislative auditor to conduct an impact analysis of the
117.24proposed rule. The request must be sent in writing to the legislative auditor and the agency.
117.25Upon receipt of the request, the agency may not proceed to adopt the proposed rule until it
117.26has received a positive declaration from the requesting standing committee. Within 60 days
117.27of receipt of a request, the legislative auditor shall convene a five-person peer review panel
117.28to review the proposed rule. The advisory panel must be made up of individuals who have
117.29not directly or indirectly been involved in work conducted or contracted by the agency and
117.30who are not employed by the agency. The panel may receive written and oral comments
117.31from the public during its review of the proposed rule. The panel must prepare a report that
117.32includes a conclusion on whether the proposed rule:
117.33(1) is based on sound, reasonably available scientific, technical, economic, and other
117.34information and rationale; and
118.1(2) if the proposed rule is more restrictive than a standard, limitation, or requirement
118.2imposed by federal law or rule pertaining to the same subject matter, a justification based
118.3on sound, reasonably available scientific, technical, economic, or other information and
118.4rationale that the more stringent standard is necessary to protect the public's health, safety,
118.5or welfare.
118.6(b) Within 150 days of being convened, the panel must submit its report to the chairs
118.7and ranking minority members of the requesting committee and the legislative auditor.
118.8Within five days of receipt of the panel's report, the requesting standing committee shall
118.9send the report to the agency along with either:
118.10(1) a positive declaration that the agency may proceed with the proposed rule; or
118.11(2) a negative declaration that the agency may not proceed with the proposed rule in its
118.12current form.
118.13(c) If the requesting standing committee issues a negative declaration to an agency under
118.14paragraph (b), clause (2), the agency may not adopt the rule until the legislature adjourns
118.15the annual legislative session that began after the issuance of the negative declaration.
118.16 Subd. 2. Severability. If any one or more provision, sentence, clause, phrase, or word
118.17in this section or the application thereof to any person or circumstance is found to be
118.18unconstitutional, the same is hereby declared to be severable and the balance of this section
118.19shall remain effective notwithstanding such unconstitutionality. The legislature hereby
118.20declares that it would have passed this section and each provision, sentence, clause, phrase,
118.21or word thereof irrespective of the fact that any one or more provision, sentence, clause,
118.22phrase, or word be declared unconstitutional.
118.23 Sec. 18. Minnesota Statutes 2016, section 14.131, is amended to read:
118.2414.131 STATEMENT OF NEED AND REASONABLENESS.
118.25By the date of the section14.14, subdivision 1a , notice, the agency must prepare, review,
118.26and make available for public review a statement of the need for and reasonableness of the
118.27rule. The statement of need and reasonableness must be prepared under rules adopted by
118.28the chief administrative law judge and must include a citation to the most specific statutory
118.29authority for the rule and the following to the extent the agency, through reasonable effort,
118.30can ascertain this information:
118.31(1) a description of the classes of persons who probably will be affected by the proposed
118.32rule, including classes that will bear the costs of the proposed rule and classes
that will
118.33benefit from the proposed rule;
119.1(2) the probable costs to the agency and to any other agency of the implementation
and
119.2enforcement of the proposed rule and any anticipated effect on state revenues;
119.3(3) a determination of whether there are less costly methods or less intrusive methods
119.4for achieving the purpose of the proposed rule;
119.5(4) a description of any alternative methods for achieving the purpose of the proposed
119.6rule that were seriously considered by the agency and the reasons why they were rejected
119.7in favor of the proposed rule;
119.8(5) the probable costs of complying with the proposed rule, including the portion
of the
119.9total costs that will be borne by identifiable categories of affected parties, such
as separate
119.10classes of governmental units, businesses, or individuals;
119.11(6) the probable costs or consequences of not adopting the proposed rule, including
those
119.12costs or consequences borne by identifiable categories of affected parties, such as
separate
119.13classes of government units, businesses, or individuals;
119.14(1) a description of the persons or classifications of persons who will probably be affected
119.15by the proposed rule;
119.16(2) the probable costs of the rule to affected persons and the agency, including those
119.17costs or consequences borne by identifiable categories of affected parties, such as separate
119.18classes of government units, businesses, or individuals, and the probable benefits of adopting
119.19the rule;
119.20(7) (3) an assessment of any differences between the proposed rule and existing or
119.21proposed federalregulations standards and similar standards in relevant states bordering
119.22Minnesota or within Environmental Protection Agency Region 5 and a specific analysis of
119.23the need for and reasonableness of each difference;and
119.24(8) (4) an assessment of the cumulative effect of the rule with other federal and state
119.25regulations related to the specific purpose of the rule. all rules adopted by the agency or any
119.26other agency, and all federal regulations and local ordinances or regulations, related to the
119.27specific purpose for which the rule is being adopted; and
119.28(5) the agency's findings and conclusions that support its determination that the proposed
119.29rule is based on sound, reasonably available scientific, technical, economic, or other
119.30information and rationale; and if the proposed rule is more restrictive than a standard,
119.31limitation, or requirement imposed by federal law or rule pertaining to the same subject
119.32matter, a justification based on sound, reasonably available scientific, technical, economic,
120.1or other information and rationale that the more stringent standard is necessary to protect
120.2the public's health, safety, or welfare.
120.3The statement must describe how the agency, in developing the rules, considered and
120.4implemented the legislative policy supporting performance-based regulatory systems set
120.5forth in section14.002 in a cost-effective and timely manner.
120.6For purposes of clause(8) (4), "cumulative effect" means the impact that results from
120.7incremental impact of the proposed rule in addition to other rules, regardless of what state
120.8or federal agency has adopted the other rules. Cumulative effects can result from individually
120.9minor but collectively significant rules adopted over a period of time.
120.10The statement must also describe the agency's efforts to provide additional notification
120.11under section
14.14, subdivision 1a, to persons or classes of persons who may be affected
120.12by the proposed rule or must explain why these efforts were not made.
120.13The statement must describe, with reasonable particularity, the scientific, technical, and
120.14economic information that supports the proposed rule.
120.15The agency must consult with the commissioner of management and budget to help
120.16evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local
120.17government. The agency must send a copy of the statement of need and reasonableness to
120.18the Legislative Reference Library no later than when the notice of hearing ismailed under
120.19section
14.14, subdivision 1a
120.20 Sec. 19. Minnesota Statutes 2016, section 14.14, subdivision 1a, is amended to read:
120.21 Subd. 1a. Notice of rule hearing. (a)Each agency shall maintain a list of all persons
120.22who have registered with the agency for the purpose of receiving notice of rule proceedings.
120.23Persons may register to receive notice of rule proceedings by submitting to the agency:
120.24(1) their electronic mail address; or
120.25(2) their name and United States mail address.
120.26The agency may inquire as to whether those persons on the list wish to remain on it
and
120.27may remove persons for whom there is a negative reply or no reply within 60 days. The
120.28agency shall, at least 30 days before the date set for the hearing, give notice of its intention
120.29toadopt hold a hearing on the proposed rules by United States mail or electronic mail to all
120.30personson its list who have registered with the agency under section 14.105, and by
120.31publication in the State Register.
121.1The mailed notice must include either a copy of the proposed rule or an easily readable
121.2and understandable description of its nature and effect and an announcement that a
free
121.3copy of the proposed rule is available on request from the agency. In addition, each
agency
121.4shall make reasonable efforts to notify persons or classes of persons who may be significantly
121.5affected by the rule being proposed by giving notice of its intention in newsletters,
121.6newspapers, or other publications, or through other means of communication. The notice
121.7in the State Register must include the proposed rule or an amended rule in the form required
121.8by the revisor under section14.07 , together with an easily readable and understandable
121.9summary of the overall nature and effect of the proposed rule, a citation to the most specific
121.10statutory authority for the proposed rule, a statement of the place, date, and time of the
121.11public hearing, a statement that a free copy of the proposed rule and the statement of need
121.12and reasonableness may be requested from the agency, a statement that persons may register
121.13with the agency for the purpose of receiving notice of rule proceedingsand notice that the
121.14agency intends to adopt a rule, and other information required by law or rule. When an
121.15entire rule is proposed to be repealed, the agency need only publish that fact, along with an
121.16easily readable and understandable summary of the overall nature of the rules proposed for
121.17repeal, and a citation to the rule to be repealed.
121.18The mailed notice of hearing must be the same as the notice published in the State
121.19Register, except that the mailed notice may omit the text of the proposed rule if it includes
121.20an announcement of where a copy of the proposed rule may be obtained.
121.21(b) The chief administrative law judge may authorize an agency to omit from the notice
121.22of rule hearing the text of any proposed rule, the publication of which would be unduly
121.23cumbersome, expensive, or otherwise inexpedient if:
121.24(1) knowledge of the rule is likely to be important to only a small class of persons;
121.25(2) the notice of rule hearing states that a free copy of the entire rule is available upon
121.26request to the agency; and
121.27(3) the notice of rule hearing states in detail the specific subject matter of the omitted
121.28rule, cites the statutory authority for the proposed rule, and details the proposed rule's purpose
121.29and motivation.
121.30 Sec. 20. Minnesota Statutes 2016, section 14.14, subdivision 2a, is amended to read:
121.31 Subd. 2a. Hearing procedure. When a hearing is held on a proposed rule, it shall be
121.32conducted by an administrative law judge assigned by the chief administrative law judge.
121.33The administrative law judge shall ensure that all persons involved in the rule hearing are
122.1treated fairly and impartially. The agency shall submit into the record the jurisdictional
122.2documents, including the statement of need and reasonableness, comments and hearing
122.3requests received, and any written exhibits in support of the proposed rule. The agency may
122.4also present additional oral evidence. Interested persons may present written and oral
122.5evidence. The administrative law judge shall allow questioning of agency representatives
122.6or witnesses, or of interested persons making oral statements, in order to explain the purpose
122.7or intended operation of a proposed rule, or a suggested modification, or for other purposes
122.8if material to the evaluation or formulation of the proposed rule. The administrative law
122.9judge may limit repetitive or immaterial oral statements and questioning.
122.10 Sec. 21. Minnesota Statutes 2016, section 14.18, subdivision 1, is amended to read:
122.11 Subdivision 1. Generally. Unless a later date is required by section 14.126 or other law
122.12or is specified in the rule, a rule is effective after:
122.13(1) it has been subjected to all requirements described in sections14.131 to
14.20 and
122.14five working days after;
122.15(2) the notice of adoption is published in the State Registerunless a later date is required
122.16by section
14.126 or other law or specified in the rule; and
122.17(3) it has been approved by a law enacted after publication of the notice of adoption. if
122.18any of the following applies:
122.19(i) the rule is enacted without a specific authorization of rulemaking to enact rules to
122.20implement a specific statute section;
122.21(ii) a sanction or penalty can be imposed for failure to comply with the rule; or
122.22(iii) the regulating agency has the authority to adjudicate a dispute with a regulated entity
122.23about enforcement of or violation of the rule.
122.24If the rule adopted is the same as the proposed rule, publication may be made by
122.25publishing notice in the State Register that the rule has been adopted as proposed and by
122.26citing the prior publication. If the rule adopted differs from the proposed rule, the portions
122.27of the adopted rule that differ from the proposed rule must be included in the notice of
122.28adoption together with a citation to the prior State Register publication of the remainder of
122.29the proposed rule. The nature of the modifications must be clear to a reasonable person
122.30when the notice of adoption is considered together with the State Register publication of
122.31the proposed rule, except that modifications may also be made that comply with the form
122.32requirements of section14.07, subdivision 7 .
123.1If the agency omitted from the notice of proposed rule adoption the text of the proposed
123.2rule, as permitted by section14.14, subdivision 1a , paragraph (b), the chief administrative
123.3law judge may provide that the notice of the adopted rule need not include the text of any
123.4changes from the proposed rule. However, the notice of adoption must state in detail the
123.5substance of the changes made from the proposed rule, and must state that a free copy of
123.6the portion of the adopted rule that was the subject of the rulemaking proceeding, not
123.7including any material adopted by reference as permitted by section14.07 , is available upon
123.8request to the agency.
123.9 Sec. 22. Minnesota Statutes 2016, section 14.19, is amended to read:
123.1014.19 DEADLINE TO COMPLETE RULEMAKING.
123.11Within 180 days after issuance of the administrative law judge's report or that of the
123.12chief administrative law judge, the agency shall submit its notice of adoption, amendment,
123.13or repeal to the State Register for publication. If the agency has not submitted its notice to
123.14the State Register within 180 days, the rule is automatically withdrawn. The agency may
123.15not adopt the withdrawn rules without again following the procedures of sections14.05 to
123.1614.28
, with the exception of section
14.101 , if the noncompliance is approved by the chief
123.17administrative law judge. The agency shall report to the Legislative Coordinating
123.18Commission, other appropriate committees of the legislature, and the governor its failure
123.19to adopt rules and the reasons for that failure. The 180-day time limit of this section does
123.20not include:
123.21(1) any days used for review by the chief administrative law judge or the commission
123.22if the review is required by law; or
123.23(2) days during which the rule cannot be adopted, because of votes by legislative
123.24committees under section14.126 ; or.
123.25(3) days during which the rule cannot be adopted because approval of the legislature
is
123.26required under section
14.127.
123.27 Sec. 23. Minnesota Statutes 2016, section 14.22, subdivision 1, is amended to read:
123.28 Subdivision 1. Contents. (a)Unless an agency proceeds directly to a public hearing on
123.29a proposed rule and gives the notice prescribed in section
14.14, subdivision 1a, the agency
123.30shall give notice of its intention to adopt a rule without public hearing. The agency shall
123.31give the notice required by this section, unless the agency gives notice of a hearing under
123.32section 14.14 or a notice under section 14.389, subdivision 2. The agency shall give notice
124.1must be given of its intention to adopt a rule by publication in the State Register and by
124.2United States mail or electronic mail to persons who have registered their names with the
124.3agency under section14.14, subdivision 1aThe mailed notice must include either
124.4a copy of the proposed rule or an easily readable and understandable description of
its nature
124.5and effect and an announcement that a free copy of the proposed rule is available
on request
124.6from the agency. In addition, each agency shall make reasonable efforts to notify
persons
124.7or classes of persons who may be significantly affected by the rule by giving notice
of its
124.8intention in newsletters, newspapers, or other publications, or through other means
of
124.9communication. The notice in the State Register must include the proposed rule or the
124.10amended rule in the form required by the revisor under section14.07 ,; an easily readable
124.11and understandable summary of the overall nature and effect of the proposed rule,; a citation
124.12to the most specific statutory authority for the proposed rule,; a statement that a free copy
124.13of the statement of need and reasonableness may be requested from the agency; a statement
124.14that persons may register with the agencyfor the purpose of receiving to receive notice of
124.15rule proceedingsand notice that a rule has been submitted to the chief administrative law
124.16judge,; and other information required by law or rule. When an entire rule is proposed to
124.17be repealed, the notice need only state that fact, along with an easily readable and
124.18understandable summary of the overall nature of therules rule proposed for repeal, and a
124.19citation to the rule to be repealed. The notice must include a statement advising the public:
124.20(1) that the public has at least 30 days in which to submit comment in support of or in
124.21opposition to the proposed rule and that comment is encouraged;
124.22(2) that each comment should identify theportion part and subpart, if any, of the proposed
124.23rule addressed, the reason for the comment, and any change proposed;
124.24(3) that the requester is encouraged to propose any change desired;
124.25(3) (4) that if 25 or more persons submit a written request for a public hearing within
124.26the30-day comment period, a public hearing will be held and the agency will use the process
124.27under section 14.14;
124.28(4) (5) of the manner in which persons must request a public hearing on the proposed
124.29rule, including the requirements contained in section 14.25 relating to a written request for
124.30a public hearing; and
124.31(5) of the requirements contained in section
14.25 relating to a written request for a
124.32public hearing, and that the requester is encouraged to propose any change desired;
124.33(6) that the agency may modify the proposed rulemay be modified if the modifications
124.34are supported by the data and views submitted; and.
125.1(7) that if a hearing is not required, notice of the date of submission of the proposed
rule
125.2to the chief administrative law judge for review will be mailed to any person requesting
to
125.3receive the notice.
125.4In connection with the statements required in clauses (1) and(3) (4), the notice must
125.5also include the date on which the30-day comment period ends. The mailed notice of intent
125.6to adopt a rule must be the same as the notice published in the State Register, except that
125.7the mailed notice may omit the text of the proposed rule if it includes an announcement of
125.8where a copy of the proposed rule may be obtained.
125.9(b) The chief administrative law judge may authorize an agency to omit from the notice
125.10of intent to adopt the text of any proposed rule, the publication of which would be unduly
125.11cumbersome, expensive, or otherwise inexpedient if:
125.12(1) knowledge of the rule is likely to be important to only a small class of persons;
125.13(2) the notice of intent to adopt states that a free copy of the entire rule is available upon
125.14request to the agency; and
125.15(3) the notice of intent to adopt states in detail the specific subject matter of the omitted
125.16rule, cites the statutory authority for the proposed rule, and details the proposed rule's purpose
125.17and motivation.
125.18 Sec. 24. Minnesota Statutes 2016, section 14.23, is amended to read:
125.1914.23 STATEMENT OF NEED AND REASONABLENESS.
125.20By the date of the section14.22 notice, the agency shall prepare a statement of need and
125.21reasonableness, which must be available to the public. The statement of need and
125.22reasonableness must include theanalysis information required in section
14.131 . The
125.23statement must also describe the agency's efforts to provide additional notification
under
125.24section
14.22 to persons or classes of persons who may be affected by the proposed rules
125.25or must explain why these efforts were not made. For at least 30 days following the
notice,
125.26the agency shall afford the public an opportunity to request a public hearing and
to submit
125.27data and views on the proposed rule in writing.
125.28The agency shall send a copy of the statement of need and reasonableness to the
125.29Legislative Reference Library no later than when the notice of intent to adopt ismailed sent.
126.1 Sec. 25. Minnesota Statutes 2016, section 14.25, subdivision 1, is amended to read:
126.2 Subdivision 1. Requests for hearing. If, during the30-day period allowed for comment
126.3under section 14.22, 25 or more persons submit to the agency a written request for a public
126.4hearing of the proposed rule, the agency shall proceed under the provisions of sections14.14
126.5to14.20 . The written request must include:
126.6(1) the name and address of the person requesting the public hearing;and
126.7(2) theportion or portions part or subpart, if any, of the rule to which the person objects
126.8or a statement that the person opposes the entire rule. If not previously published
under
126.9section
14.22, subdivision 2, a notice of the public hearing must be published in the State
126.10Register and mailed to those persons who submitted a written request for the public
hearing.
126.11Unless the agency has modified the proposed rule, the notice need not include the
text of
126.12the proposed rule but only a citation to the State Register pages where the text appears; and
126.13(3) the reasons for the objection to each portion of the rule identified.
126.14A written request for a public hearing that does not comply with the requirements of this
126.15section is invalid and may not be counted by the agency for purposes of determining whether
126.16a public hearing must be held. A written request for a public hearing is not invalid due to
126.17failure of the request to correctly identify the portion of the rule to which the person objects
126.18if the agency reasonably can determine which portion of the rule is the basis for the objection.
126.19 Sec. 26. Minnesota Statutes 2016, section 14.26, is amended to read:
126.2014.26 ADOPTION OF PROPOSED RULE; SUBMISSION TO ADMINISTRATIVE
126.21LAW JUDGE.
126.22 Subdivision 1. Submission. If no hearing is required, the agency shall submit to an
126.23administrative law judge assigned by the chief administrative law judge the proposed rule
126.24and notice as published, the rule as adopted, any written comments received by the agency,
126.25and a statement of need and reasonableness for the rule. The agency shall give notice to all
126.26persons who requested to be informed that these materials have been submitted to the
126.27administrative law judge. This notice must be given on the same day that the record is
126.28submitted. If the proposed rule has been modified, the notice must state that fact, and must
126.29also state that a free copy of the proposed rule, as modified, is available upon request from
126.30the agency. The rule and these materials must be submitted to the administrative law judge
126.31within 180 days of the day that the comment period for the rule is over or the rule is
126.32automatically withdrawn. The agency may not adopt the withdrawn rules without again
126.33following the procedures of sections14.05 to
14.28 , with the exception of section
14.101 ,
127.1if the noncompliance is approved by the chief administrative law judge. The agency shall
127.2report its failure to adopt the rules and the reasons for that failure to the Legislative
127.3Coordinating Commission, other appropriate legislative committees, and the governor.
127.4Subd. 2. Resubmission. Even if the 180-day period expires while the administrative
127.5law judge reviews the rule, if the administrative law judge rejects the rule, the
agency may
127.6resubmit it after taking corrective action. The resubmission must occur within 30
days of
127.7when the agency receives written notice of the disapproval. If the rule is again disapproved,
127.8the rule is withdrawn. An agency may resubmit at any time before the expiration of
the
127.9180-day period. If the agency withholds some of the proposed rule, it may not adopt
the
127.10withheld portion without again following the procedures of sections
14.14 to
14.28.
127.11 Subd. 3. Review.(a) Within 14 days of receiving a submission under subdivision 1, the
127.12administrative law judge shall approve or disapprove the rule as to its legality and its form
127.13to the extent that the form relates to legality, including the issues of whether the rule if
127.14modified is substantially different, as determined under section14.05, subdivision 2 , from
127.15the rule as originally proposed, whether the agency has the authority to adopt the rule, and
127.16whether the record demonstrates a rational basis for the need for and reasonableness of the
127.17proposed rule.If the rule is approved, the administrative law judge shall promptly file four
127.18paper copies or an electronic copy of the adopted rule in the Office of the Secretary
of State.
127.19The secretary of state shall forward one copy of each rule to the revisor of statutes,
to the
127.20agency, and to the governor. If the rule is disapproved, the administrative law judge shall
127.21state in writing the reasons for the disapproval and make recommendations to overcome
127.22the defects.
127.23 Subd. 3b. Harmless error. The administrative law judge shall disregard any error or
127.24defect in the proceeding due to the agency's failure to satisfy any procedural requirements
127.25imposed by law or rule if the administrative law judge finds:
127.26(1) that the failure did not deprive any person or entity of an opportunity to participate
127.27meaningfully in the rulemaking process; or
127.28(2) that the agency has taken corrective action to cure the error or defect so that the
127.29failure did not deprive any person or entity of an opportunity to participate meaningfully
127.30in the rulemaking process.
127.31 Subd. 3c. Correction of defects.(b) (a) The written disapproval must be submitted to
127.32the chief administrative law judge for approval. If the chief administrative law judge approves
127.33of the findings of the administrative law judge, the chief administrative law judge shall send
127.34the statement of the reasons for disapproval of the rule to the agency, the Legislative
128.1Coordinating Commission, the house of representatives and senate policy committees with
128.2primary jurisdiction over state governmental operations, and the revisor of statutes and
128.3advise the agency and the revisor of statutes of actions that will correct the defects. The rule
128.4may not be filed in the Office of the Secretary of State, nor be published, until the chief
128.5administrative law judge determines that the defects have been corrected or, if applicable,
128.6that the agency has satisfied the rule requirements for the adoption of a substantially different
128.7rule.
128.8(b) The agency may resubmit the disapproved rule under paragraph (a) to the chief
128.9administrative law judge after correcting the defects. If the 180-day period expires while
128.10the chief administrative law judge is reviewing the rule, the agency may resubmit the rule
128.11within 30 days of the date the agency received written notice of disapproval. In all other
128.12cases, the agency may resubmit the rule at any time before the expiration of the 180-day
128.13period in subdivision 1. If the resubmitted rule is disapproved by the chief administrative
128.14law judge, the rule is withdrawn. If the agency does not resubmit a portion of the rule, it
128.15may not adopt that portion of the rule without again following the procedures of sections
128.1614.14 to 14.28.
128.17 Subd. 3d. Need or reasonableness not established.(c) If the chief administrative law
128.18judge determines that the need for or reasonableness of the rule has not been established,
128.19and if the agency does not elect to follow the suggested actions of the chief administrative
128.20law judge to correct that defect, then the agency shall submit the proposed rule to the
128.21Legislative Coordinating Commission and to the house of representatives and senate policy
128.22committees with primary jurisdiction over state governmental operations for advice and
128.23comment. The agency may not adopt the rule until it has received and considered the advice
128.24of the commission and committees. However, the agency need not wait for advice for more
128.25than 60 days after the commission and committees have received the agency's submission.
128.26(d) The administrative law judge shall disregard any error or defect in the proceeding
128.27due to the agency's failure to satisfy any procedural requirements imposed by law
or rule
128.28if the administrative law judge finds:
128.29(1) that the failure did not deprive any person or entity of an opportunity to participate
128.30meaningfully in the rulemaking process; or
128.31(2) that the agency has taken corrective action to cure the error or defect so that
the
128.32failure did not deprive any person or entity of an opportunity to participate meaningfully
128.33in the rulemaking process.
129.1Subd. 3a. Filing. If the rule is approved, the administrative law judge shall promptly
129.2file four paper copies or an electronic copy of the adopted rule in the Office of
the Secretary
129.3of State. The secretary of state shall forward one copy of each rule to the revisor
of statutes,
129.4to the agency, and to the governor.
129.5Subd. 4. Costs. The Office of Administrative Hearings shall assess an agency for the
129.6actual cost of processing rules under this section. Each agency shall include in its
budget
129.7money to pay the assessment. Receipts from the assessment must be deposited in the
129.8administrative hearings account created in section
14.54.
129.9 Subd. 5. Filing. If the rule is approved, the chief administrative law judge shall promptly
129.10file four paper copies or an electronic copy of it in the Office of the Secretary of State. The
129.11secretary of state shall forward one copy of the rule to the revisor of statutes, one copy to
129.12the agency, and one copy to the governor.
129.13 Subd. 6. Costs. The Office of Administrative Hearings shall assess an agency for the
129.14actual cost of processing rules under this section. Each agency shall include in its budget
129.15money to pay the assessment. Receipts from the assessment must be deposited in the
129.16administrative hearings account created in section14.54 .
129.17 Sec. 27. Minnesota Statutes 2016, section 14.27, is amended to read:
129.1814.27 PUBLICATION OF ADOPTED RULE; EFFECTIVE DATE.
129.19(a) Except as provided in paragraph (b), the rule is effectiveupon after publication of
129.20the notice of adoption in the State Register in the same manner as provided for adopted
129.21rules in section14.18 .
129.22(b) A rule is effective after publication of the notice of adoption in the State Register
129.23and after approval by law in the same manner as provided for adopted rules in section 14.18,
129.24if any of the following applies:
129.25(1) the rule is enacted without a specific authorization of rulemaking to enact rules to
129.26implement a specific statute section;
129.27(2) a sanction or penalty can be imposed for failure to comply with the rule; or
129.28(3) the regulating agency has the authority to adjudicate a dispute with a regulated entity
129.29about enforcement of or violation of the rule.
129.30EFFECTIVE DATE.This section is effective the day following final enactment and
129.31applies to rules for which a notice of adoption is published on or after that date.
130.1 Sec. 28. Minnesota Statutes 2016, section 14.365, is amended to read:
130.214.365 OFFICIAL RULEMAKING RECORD.
130.3The agency shall maintain the official rulemaking record for every rule adopted under
130.4sections14.05 to
14.389
130.5record required by this section constitutes the official and exclusive agency rulemaking
130.6record with respect to agency action on or judicial review of the rule. The record must
130.7contain:
130.8(1) copies of all publications in the State Register pertaining to the rule;
130.9(2) all written petitions, and all requests, submissions, or comments received by the
130.10agency or the administrative law judge after publication of the notice of intent to adopt or
130.11the notice of hearing in the State Register pertaining to the rule;
130.12(3) the statement of need and reasonableness for the rule;
130.13(4) any report prepared by the peer review panel pursuant to section 14.129;
130.14(4) (5) the official transcript of the hearing if one was held, or the tape recording of
the
130.15hearing if a transcript was not prepared;
130.16(5) (6) the report of the administrative law judge, if any;
130.17(6) (7) the rule in the form last submitted to the administrative law judge under sections
130.1814.14
to
14.20 or first submitted to the administrative law judge under sections
14.22 to
130.1914.28
;
130.20(7) (8) the administrative law judge's written statement of required modifications and
130.21of approval or disapproval by the chief administrative law judge, if any;
130.22(8) (9) any documents required by applicable rules of the Office of Administrative
130.23Hearings;
130.24(9) (10) the agency's order adopting the rule;
130.25(10) (11) the revisor's certificate approving the form of the rule; and
130.26(11) (12) a copy of the adopted rule as filed with the secretary of state.
130.27 Sec. 29. Minnesota Statutes 2016, section 14.381, subdivision 3, is amended to read:
130.28 Subd. 3. Costs. The agency is liable for all Office of Administrative Hearings costs
130.29associated with review of the petition. If the administrative law judge rules in favor of the
130.30agency, the agency may recover all or a portion of the costs from the petitioner unless the
131.1petitioner is entitled to proceed in forma pauperis under section563.01 or the administrative
131.2law judge determines that the petition was brought in good faith and that an assessment of
131.3the costs would constitute an undue hardship for the petitioner.If an agency has reason to
131.4believe it will prevail in the consideration of a petition, and that an effort to
recover costs
131.5from the petitioner will be unsuccessful, it may request the chief administrative
law judge
131.6to require the petitioner to provide bond or a deposit to the agency in an amount
the chief
131.7administrative law judge estimates will be the cost to the Office of Administrative
Hearings
131.8to review the petition.
131.9 Sec. 30. Minnesota Statutes 2016, section 14.388, subdivision 1, is amended to read:
131.10 Subdivision 1. Requirements. If an agency for good cause finds that the rulemaking
131.11provisions of this chapter are unnecessary, impracticable, or contrary to the public interest
131.12when adopting, amending, or repealing a rule to:
131.13(1) address a serious and immediate threat to the public health, safety, or welfare;
131.14(2) comply with a court order or a requirement in federal law in a manner that does not
131.15allow for compliance with sections14.14 to
14.28 ;
131.16(3) incorporate specific changes set forth in applicable statutes when no interpretation
131.17of law is required; or
131.18(4) make changes that do not alter the sense, meaning, or effect of a rule,
131.19the agency may adopt, amend, or repeal the rule after satisfying the requirements of
131.20subdivision 2 and section14.386, paragraph (a) , clauses (1) to (4). The agency shall
131.21incorporate its findings and a brief statement of its supporting reasons in its order adopting,
131.22amending, or repealing the rule.
131.23After considering the agency's statement and any comments received, the Office of
131.24Administrative Hearings shall determine whether the agency has provided adequate
131.25justification for its use of this section.
131.26Rules adopted, amended, or repealed underclauses clause (1) and (2) are effective for
131.27a period of two years from the date of publication of the rule in the State Register.
131.28Rules adopted, amended, or repealed under clause (2), (3), or (4) are effective upon
131.29publication in the State Register.
132.1 Sec. 31. Minnesota Statutes 2016, section 14.388, subdivision 2, is amended to read:
132.2 Subd. 2. Notice. An agency proposing to adopt, amend, or repeal a rule under this section
132.3must give notice to the chairs and ranking minority members of the legislative policy and
132.4budget committees with jurisdiction over the subject matter of the proposed rules and to
132.5the Legislative Coordinating Commission, must give electronic notice of its intent in
132.6accordance with section16E.07, subdivision 3 , and must give notice by United States mail
132.7or electronic mail to persons who have registered their names with the agency under section
132.814.14, subdivision 1a
. The notice must be given no later than the date the agency submits
132.9the proposed rule to the Office of Administrative Hearings for review of its legality and
132.10must include:
132.11(1) the proposed rule, amendment, or repeal;
132.12(2) an explanation of why the rule meets the requirements of the good cause exemption
132.13under subdivision 1; and
132.14(3) a statement that interested parties have five business days after the date of the notice
132.15to submit comments to the Office of Administrative Hearings.
132.16 Sec. 32. Minnesota Statutes 2016, section 14.389, subdivision 3, is amended to read:
132.17 Subd. 3. Adoption. (a) The agency may modify a proposed rule if the modifications do
132.18not result in a substantially different rule, as defined in section14.05, subdivision 2 ,
132.19paragraphs (b) and (c). If the final rule is identical to the rule originally published in the
132.20State Register, the agency must publish a notice of adoption in the State Register. If the
132.21final rule is different from the rule originally published in the State Register, the agency
132.22must publish a copy of the changes in the State Register. The agency must also file a copy
132.23of the rule with the governor.The rule is effective upon publication in the State Register.
132.24(b) Except as provided in paragraph (c), the rule is effective upon publication in the
132.25State Register.
132.26(c) The rule is effective upon publication of the notice of adoption if it has been approved
132.27by a law enacted after publication of the notice of adoption, if any of the following applies:
132.28(1) the rule is enacted without a specific authorization of rulemaking to enact rules to
132.29implement a specific statute section;
132.30(2) a sanction or penalty can be imposed for failure to comply with the rule; or
132.31(3) the regulating agency has the authority to adjudicate a dispute with a regulated entity
132.32about enforcement of or violation of the rule.
133.1EFFECTIVE DATE.This section is effective the day following final enactment and
133.2applies to rules for which a notice of adoption is published on or after that date.
133.3 Sec. 33. Minnesota Statutes 2016, section 14.44, is amended to read:
133.414.44 DETERMINATION OF VALIDITY OF RULE.
133.5(a) The validity of any rule, or the validity of any agency policy, guideline, bulletin,
133.6criterion, manual standard, or similar pronouncement that the petitioner believes is a rule
133.7as defined in section 14.02, subdivision 4, may be determined upon the petition for a
133.8declaratory judgment thereon, addressed to the Court of Appeals, when it appears that the
133.9rule or pronouncement, or its threatened application, interferes with or impairs, or threatens
133.10to interfere with or impair the legal rights or privileges of the petitioner. The agency shall
133.11be made a party to the proceeding. The declaratory judgment may be rendered whether or
133.12not the petitioner has first requested the agency to pass upon the validity of the rule in
133.13question, whether or not the petitioner has petitioned the Office of Administrative Hearings
133.14under section 14.381, and whether or not the agency has commenced an action against the
133.15petitioner to enforce the rule.
133.16(b) If the subject of the petition is an agency policy, guideline, bulletin, criterion, manual
133.17standard, or similar pronouncement, the agency must cease enforcement of the
133.18pronouncement upon filing of the petition until the Court of Appeals rules on the matter.
133.19The agency is liable for all costs associated with review of the petition. If the Court of
133.20Appeals rules in favor of the agency, the agency may recover all or a portion of the cost
133.21from the petitioner unless the petitioner is entitled to proceed in a forma pauperis under
133.22section 563.01, or the court determines that the petition was brought in good faith or the
133.23assessment of the costs would constitute an undue hardship for the petitioner.
133.24 Sec. 34. Minnesota Statutes 2016, section 14.45, is amended to read:
133.2514.45 RULE DECLARED INVALID.
133.26In proceedings under section14.44 , the court shall declare the rule or agency policy,
133.27guideline, bulletin, criterion, manual standard, or similar pronouncement invalid if it finds
133.28that it violates constitutional provisions or exceeds the statutory authority of the agency or
133.29if the rule was adopted or the policy, guideline, bulletin, criterion, manual standard, or
133.30similar pronouncement was improperly implemented without compliance with statutory
133.31rulemaking procedures. Any party to proceedings under section14.44 , including the agency,
133.32may appeal an adverse decision of the Court of Appeals to the Supreme Court as in other
133.33civil cases.
134.1 Sec. 35. Minnesota Statutes 2016, section 14.51, is amended to read:
134.214.51 PROCEDURAL RULES.
134.3The chief administrative law judge shall adopt rules to govern: (1) the procedural conduct
134.4of all hearings, relating to both rule adoption, amendment, suspension or repeal hearings,
134.5contested case hearings, and workers' compensation hearings, and to govern the conduct of
134.6voluntary mediation sessions for rulemaking and contested cases other than those within
134.7the jurisdiction of the Bureau of Mediation Services; and (2) the review of rules adopted
134.8without a public hearing. The chief administrative law judge may adopt rules to govern the
134.9procedural conduct of other hearings conducted by the Office of Administrative Hearings.
134.10The procedural rules shall be binding upon all agencies and shall supersede any other agency
134.11procedural rules with which they may be in conflict. The procedural rules shall include in
134.12addition to normal procedural matters provisions relating to the procedure to be followed
134.13when the proposed final rule of an agency is substantially different, as determined under
134.14section14.05, subdivision 2 , from that which was proposed. The procedural rules shall
134.15establish a procedure whereby the proposed final rule of an agency shall be reviewed by
134.16the chief administrative law judge on the issue of whether the proposed final rule of the
134.17agency is substantially different than that which was proposed or failure of the agency to
134.18meet the requirements of chapter 14. The rules must also provide: (1) an expedited procedure,
134.19consistent with section14.001 , clauses (1) to (5), for the adoption of substantially different
134.20rules by agencies; and (2) a procedure to allow an agency to receive prior binding approval
134.21of its plan regarding the additional notice contemplated under sections14.101 ,
14.131 ,
134.2214.14
,
14.22 , and
14.23 , and 14.389. Upon the chief administrative law judge's own initiative
134.23or upon written request of an interested party, the chief administrative law judge may issue
134.24a subpoena for the attendance of a witness or the production of books, papers, records or
134.25other documents as are material to any matter being heard by the Office of Administrative
134.26Hearings. The subpoenas shall be enforceable through the district court in the district in
134.27which the subpoena is issued.
134.28 Sec. 36. Minnesota Statutes 2016, section 14.57, is amended to read:
134.2914.57 INITIATION; DECISION; AGREEMENT TO ARBITRATE.
134.30(a) An agency shall initiate a contested case proceeding when one is required by law.
134.31Unless otherwise provided by law, An agency shall decide submit a contested case only to
134.32the Office of Administrative Hearings for disposition in accordance with the contested case
134.33procedures of the Administrative Procedure Act. Upon initiation of a contested case
135.1proceeding,an agency may, by order, provide that the report or order of the administrative
135.2law judge constitutes the final decision in the case.
135.3(b) As an alternative to initiating or continuing with a contested case proceeding, the
135.4parties, subsequent to agency approval, may enter into a written agreement to submit the
135.5issues raised to arbitration by an administrative law judge according to sections572B.01
135.6to572B.31 .
135.7EFFECTIVE DATE.This section is effective August 1, 2017, and applies to contested
135.8cases initiated on or after that date.
135.9 Sec. 37. [14.605] AFFIRMATIVE DEFENSE.
135.10In a contested case or any other action to enforce a rule or to sanction or penalize a
135.11person for violation of a rule, a person shall have an affirmative defense if the person shows
135.12by a preponderance of the evidence that the cost for the person to comply with the rule
135.13exceeds $50,000.
135.14EFFECTIVE DATE.This section is effective the day following final enactment and
135.15applies to rules for which a notice of adoption is published on or after that date.
135.16 Sec. 38. MINNESOTA ADMINISTRATIVE RULES STATUS SYSTEM (MARSS)
135.17WORKING GROUP.
135.18 Subdivision 1. Creation. The MARSS working group consists of the following nine
135.19members:
135.20(1) the chief judge of the Office of Administrative Hearings, or a designee;
135.21(2) the secretary of state, or a designee;
135.22(3) a representative from the Interagency Rules Committee (IRC) appointed by the
135.23committee;
135.24(4) a representative from each of the following agencies with rulemaking experience
135.25appointed by the appropriate commissioner:
135.26(i) the Department of Health;
135.27(ii) the Minnesota Pollution Control Agency;
135.28(iii) the Department of Transportation; and
135.29(iv) the Department of Labor and Industry;
135.30(5) as designated by the IRC, a representative from a health-related board; and
136.1(6) as designated by the IRC, a representative from a non-health-related board.
136.2 Subd. 2. MARSS description. The Minnesota Administrative Rules Status System
136.3(MARSS) is a concept for a new software application. The application would be built and
136.4maintained by the Revisor's Office. Executive branch agencies and others would upload
136.5official rulemaking record documents to the system. The goal is to improve public access,
136.6security, preservation, and transparency of state agencies' official rulemaking records through
136.7the creation of a single online records system. The system would serve as a single Internet
136.8location for the public to track rulemaking progress and access the official rulemaking
136.9record. Agencies would fulfill their requirement to maintain and preserve the official
136.10rulemaking record by submitting required documents to the revisor for inclusion in the
136.11online records system.
136.12 Subd. 3. Duties. The working group must report by February 1, 2018, to the chairs and
136.13ranking minority members of the committees in the house of representatives and senate
136.14with jurisdiction over policy and finance for the legislature. The report must identify the
136.15functional and nonfunctional requirements of the MARSS system. The working group must
136.16define a funding mechanism to share the cost to build and maintain the MARSS system
136.17among state agencies and departments.
136.18 Subd. 4. Administration provisions. (a) The revisor of statutes or the revisor's designee
136.19must convene the initial meeting of the working group by August 1, 2017. Upon request of
136.20the working group, the revisor must provide meeting space and administrative services for
136.21the group.
136.22(b) The working group must elect a chair from among its members at the first meeting.
136.23(c) Members serve without compensation and without reimbursement for expenses.
136.24(d) The working group expires on February 1, 2018, or upon submission of documents
136.25fulfilling its duties, whichever is earlier.
136.26 Subd. 5. Deadline for appointments and designations. The appointments and
136.27designations authorized by this section must be completed by July 1, 2017.
136.28 Sec. 39. REVISOR'S INSTRUCTION.
136.29By January 15, 2018, the revisor of statutes shall present a bill to the legislature to make
136.30the conforming statutory changes to incorporate changes in this article to the contested case
136.31procedures under Minnesota Statutes, section 14.57.
137.1 Sec. 40. REPEALER.
137.2Minnesota Statutes 2016, section 14.05, subdivision 5, is repealed.
137.3 Sec. 41. EFFECTIVE DATE; APPLICATION.
137.4Except where otherwise provided, this article is effective August 1, 2017, and applies
137.5to rules for which a notice of hearing under Minnesota Statutes, section 14.14; a notice of
137.6intent to adopt under Minnesota Statutes, section 14.22; or a dual notice under Minnesota
137.7Statutes, section 14.225, is published in the State Register on or after that date.
137.10 Section 1. Minnesota Statutes 2016, section 190.19, subdivision 2, is amended to read:
137.11 Subd. 2. Uses. (a) Money appropriated from the Minnesota "Support Our Troops" account
137.12to the Department of Military Affairs may be used for:
137.13 (1) grants directly to eligible individuals;
137.14 (2) grants to one or more eligible foundations for the purpose of making grants to eligible
137.15individuals, as provided in this section;
137.16 (3) veterans' services; or
137.17 (4) grants to family readiness groups chartered by the adjutant general.
137.18 (b) As used in paragraph (a), the term "eligible individual" includes any person who is:
137.19 (1) a member in good standing of the Minnesota National Guard or a reserve unit based
137.20in Minnesotawho has been called to active service as defined in section
190.05, subdivision
137.215
137.22 (2) a Minnesota resident who is a member of a military reserve unit not based in
137.23Minnesota, if the member is called to active service as defined in section190.05, subdivision
137.245 ;
137.25 (3) any other Minnesota resident performing active service for any branch of the military
137.26of the United States;
137.27 (4) a person who honorably served in one of the capacities listed in clause (1), (2), or
137.28(3) who has current financial needsdirectly related to that service; and
137.29 (5) a member of the immediate family of an individual identified in clause (1), (2), (3),
137.30or (4). For purposes of this clause, "immediate family" means the individual's spouse and
138.1minor children and, if they are dependents of the member of the military, the member's
138.2parents, grandparents, siblings, stepchildren, and adult children.
138.3 (c) As used in paragraph (a), the term "eligible foundation" includes any organization
138.4that:
138.5 (1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code;
138.6 (2) has articles of incorporation under chapter 317A specifying the purpose of the
138.7organization as including the provision of financial assistance to members of the Minnesota
138.8National Guard and other United States armed forces reserves and their families and
138.9survivors; and
138.10 (3) agrees in writing to distribute any grant money received from the adjutant general
138.11under this section to eligible individuals as defined in this section and in accordance with
138.12any written policies and rules the adjutant general may impose as conditions of the grant to
138.13the foundation.
138.14 (d) The maximum grant awarded to an eligible individual under paragraph (a) in a
138.15calendar year with funds from the Minnesota "Support Our Troops" account, either through
138.16an eligible institution or directly from the adjutant general, may not exceed$2,000 $4,000.
138.17 Sec. 2. Minnesota Statutes 2016, section 190.19, subdivision 2a, is amended to read:
138.18 Subd. 2a. Uses; veterans. (a) Money appropriated to the Department of Veterans Affairs
138.19from the Minnesota "Support Our Troops" account may be used for:
138.20 (1) grants to veterans service organizations;
138.21 (2) outreach to underserved veterans;
138.22(3) providing services and programs for veterans and their families;
138.23(4) transfers to the vehicle services account for Gold Star license plates under section
138.24168.1253
;
138.25(5) grants of up to $100,000 to any organization approved by the commissioner of
138.26veterans affairs for the purpose of supporting and improving the lives of veterans and their
138.27families;and
138.28(6) grants to an eligible foundation.; and
138.29(7) the agency's uncompensated burial costs for eligible dependents to whom the
138.30commissioner grants a no-fee or reduced-fee burial in the state's veteran cemeteries pursuant
138.31to section 197.236, subdivision 9, paragraph (b).
139.1(b) For purposes of this subdivision, "eligible foundation" includes any organization
139.2that:
139.3(1) is a tax-exempt organization under section 501(c) of the Internal Revenue Code; and
139.4(2) is a nonprofit corporation under chapter 317A and the organization's articles of
139.5incorporation specify that a purpose of the organization includes: (i) providing assistance
139.6to veterans and their families; or (ii) enhancing the lives of veterans and their families.
139.7 Sec. 3. Minnesota Statutes 2016, section 196.05, subdivision 1, is amended to read:
139.8 Subdivision 1. General duties. The commissioner shall:
139.9 (1) act as the agent of a resident of the state having a claim against the United States for
139.10benefits arising out of or by reason of service in the armed forces and prosecute the claim
139.11without charge;
139.12 (2) act as custodian of veterans' bonus records;
139.13 (3) administer the laws relating to the providing of bronze flag holders at veterans' graves
139.14for memorial purposes;
139.15 (4) administer the laws relating to recreational or rest camps for veterans so far as
139.16applicable to state agencies;
139.17 (5) administer the state soldiers' assistance fund and veterans' relief fund and other funds
139.18appropriated for the payment of bonuses or other benefits to veterans or for the rehabilitation
139.19of veterans;
139.20 (6) cooperate with national, state, county, municipal, and private social agencies in
139.21securing to veterans and their dependents the benefits provided by national, state, and county
139.22laws, municipal ordinances, or public and private social agencies;
139.23 (7) provide necessary assistance where other adequate aid is not available to the dependent
139.24family of a veteran while the veteran is hospitalized and after the veteran is released for as
139.25long a period as is necessary as determined by the commissioner;
139.26 (8) cooperate with United States governmental agencies providing compensation,
139.27pensions, insurance, or other benefits provided by federal law, by supplementing the benefits
139.28prescribed therein, when conditions in an individual case make it necessary;
139.29 (9) assist dependent family members of military personnel who are called from reserve
139.30status to extended federal active duty during a time of war or national emergency through
139.31the state soldiers' assistance fund provided by section197.03 ;
140.1 (10) exercise other powers as may be authorized and necessary to carry out the provisions
140.2of this chapter and chapter 197, consistent with that chapter;and
140.3 (11) provide information, referral, and counseling services to those veterans who may
140.4have suffered adverse health conditions as a result of possible exposure to chemical agents.;
140.5and
140.6(12) in coordination with the Minnesota Association of County Veterans Service Officers,
140.7develop a written disclosure statement for use by private providers of veterans benefits
140.8services as required under section 197.6091. At a minimum, the written disclosure statement
140.9shall include a signature line, contact information for the department, and a statement that
140.10veterans benefits services are offered at no cost by federally chartered veterans service
140.11organizations and by county veterans service officers.
140.12 Sec. 4. Minnesota Statutes 2016, section 197.236, subdivision 9, is amended to read:
140.13 Subd. 9. Burial fees. (a) The commissioner of veterans affairs shall establish a fee
140.14schedule, which may be adjusted from time to time, for the interment of eligible spouses
140.15and dependent children. The fees shall cover as nearly as practicable the actual costs of
140.16interment, excluding the value of the plot.
140.17 (b) Upon application, the commissioner may waive or reduce the burial feein the case
140.18of for an indigent eligible person. The commissioner shall develop a policy, eligibility
140.19standards, and application form for requests to waive or reduce the burial fee to indigent
140.20eligible applicants.
140.21 (c) No plot or interment fees may be charged for the burial of service members who die
140.22on active duty or eligible veterans, as defined in United States Code, title 38, section 101,
140.23paragraph (2).
140.24 Sec. 5. [197.6091] VETERANS BENEFITS SERVICES; DISCLOSURE
140.25REQUIREMENTS.
140.26 Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
140.27the meanings given.
140.28(b)(1) "Advertising" or "advertisement" means any of the following:
140.29(i) any written or printed communication made for the purpose of soliciting business for
140.30veterans benefits appeal services, including but not limited to a brochure, letter, pamphlet,
140.31newspaper, telephone listing, periodical, or other writing;
141.1(ii) any directory listing caused or permitted by a person and made available by that
141.2person indicating that veterans benefits appeal services are being offered; or
141.3(iii) any radio, television, computer network, or similar airwave or electronic transmission
141.4that solicits business for or promotes a person offering veterans benefits appeal services.
141.5(2) "Advertising" or "advertisement" does not include any of the following:
141.6(i) any printing or writing used on buildings, uniforms, or badges, where the purpose of
141.7the writing is for identification; or
141.8(ii) any printing or writing in a memorandum or other communication used in the ordinary
141.9course of business where the sole purpose of the writing is other than soliciting business
141.10for veterans benefits appeal services.
141.11(c) "Veterans benefits appeal services" means services that a veteran might reasonably
141.12require in order to appeal a denial of federal or state veterans benefits, including but not
141.13limited to denials of disability, limited income, home loan, insurance, education and training,
141.14burial and memorial, and dependent and survivor benefits.
141.15(d) "Veterans benefits services" means services that a veteran or a family member of a
141.16veteran might reasonably use in order to obtain federal, state, or county veterans benefits.
141.17(e) "Written disclosure statement" means the written disclosure statement developed by
141.18the commissioner of veterans affairs pursuant to section 196.05, subdivision 1.
141.19 Subd. 2. Advertising disclosure requirements. A person advertising veterans benefits
141.20appeal services must conspicuously disclose in the advertisement, in similar type size or
141.21voice-over, that veterans benefits appeal services are also offered at no cost by county
141.22veterans service officers under sections 197.603 and 197.604.
141.23 Subd. 3. Veterans benefits services disclosure requirements. A person who provides
141.24veterans benefits services in exchange for compensation shall provide a written disclosure
141.25statement to each client or prospective client. Before a person enters into an agreement to
141.26provide veterans benefits services or accepts money or any other thing of value for the
141.27provision of veterans benefits services, the person must obtain the signature of the client
141.28on a written disclosure statement containing an attestation by the client that the client has
141.29read and understands the written disclosure statement.
141.30 Subd. 4. Violations; penalties. A person who fails to comply with this section is subject
141.31to a civil penalty not to exceed $1,000 for each violation. Civil penalties shall be assessed
141.32by the district court in an action initiated by the attorney general. For the purposes of
141.33computing the amount of each civil penalty, each day of a continuing violation constitutes
142.1a separate violation. Additionally, the attorney general may accept a civil penalty as
142.2determined by the attorney general in settlement of an investigation of a violation of this
142.3section regardless of whether an action has been filed under this section. Any civil penalty
142.4recovered shall be deposited in the Support Our Troops account established under section
142.5190.19.
142.6 Subd. 5. Nonapplicability. This section does not apply to the owner or personnel of any
142.7medium in which an advertisement appears or through which an advertisement is
142.8disseminated.
142.9 Sec. 6. Minnesota Statutes 2016, section 197.791, subdivision 2, is amended to read:
142.10 Subd. 2. Program established. The Minnesota GI Bill program is established to provide
142.11postsecondary educational assistance, apprenticeship and on-the-job training benefits, and
142.12other professional and educational benefits to eligible Minnesota veterans and to the children
142.13and spouses of deceased and severely disabled Minnesota veterans.
142.14 The commissioner, in cooperation with eligible postsecondary educational institutions,
142.15shall administer the program for the purpose of providing postsecondary educational
142.16assistance to eligible persons in accordance with this section. Each public postsecondary
142.17educational institution in the state must participate in the program and each private
142.18postsecondary educational institution in the state is encouraged to participate in the program.
142.19Any participating private institution may suspend or terminate its participation in the program
142.20at the end of any semester or other academic term.
142.21 Sec. 7. Minnesota Statutes 2016, section 197.791, subdivision 3, is amended to read:
142.22 Subd. 3. Duties; responsibilities. (a) The commissioner shall establish policies and
142.23procedures including, but not limited to, procedures for student application record keeping,
142.24information sharing, payment of educational assistance benefits under subdivision 5, payment
142.25of apprenticeship or on-the-job training benefits under subdivision 5a, payment of other
142.26educational or professional benefits under subdivision 5, and other procedures the
142.27commissioner considers appropriate and necessary for effective and efficient administration
142.28of the program established in this section.
142.29 (b) The commissioner may delegate part or all of the administrative procedures for the
142.30program to responsible representatives of participating eligible institutions. The commissioner
142.31may execute an interagency agreement with the Minnesota Office of Higher Education for
142.32services the commissioner determines necessary to administer the program.
143.1 Sec. 8. Minnesota Statutes 2016, section 197.791, subdivision 4, is amended to read:
143.2 Subd. 4. Eligibility. (a) A person is eligible for educational assistance underthis section
143.3subdivisions 5 and 5a if:
143.4 (1) the person is:
143.5 (i) a veteran who is serving or has served honorably in any branch or unit of the United
143.6States armed forces at any time;
143.7 (ii) a nonveteran who has served honorably for a total of five years or more cumulatively
143.8as a member of the Minnesota National Guard or any other active or reserve component of
143.9the United States armed forces, and any part of that service occurred on or after September
143.1011, 2001;
143.11 (iii) the surviving spouse or child of a person who has served in the military and who
143.12has died as a direct result of that military service, only if the surviving spouse or child is
143.13eligible to receive federal education benefits under United States Code, title 38, chapter 33,
143.14as amended, or United States Code, title 38, chapter 35, as amended; or
143.15 (iv) the spouse or child of a person who has served in the military at any time and who
143.16has a total and permanent service-connected disability as rated by the United States Veterans
143.17Administration, only if the spouse or child is eligible to receive federal education benefits
143.18under United States Code, title 38, chapter 33, as amended, or United States Code, title 38,
143.19chapter 35, as amended; and
143.20 (2) the person receiving the educational assistance is a Minnesota resident, as defined
143.21in section136A.101, subdivision 8 ; and
143.22 (3) the person receiving the educational assistance:
143.23 (i) is an undergraduate or graduate student at an eligible institution;
143.24 (ii) is maintaining satisfactory academic progress as defined by the institution for students
143.25participating in federal Title IV programs;
143.26 (iii) is enrolled in an education program leading to a certificate, diploma, or degree at
143.27an eligible institution;
143.28 (iv) has applied for educational assistance under this section prior to the end of the
143.29academic term for which the assistance is being requested;
143.30 (v) is in compliance with child support payment requirements under section136A.121,
143.31subdivision 2 , clause (5); and
144.1 (vi) has completed the Free Application for Federal Student Aid (FAFSA).
144.2 (b) A person's eligibility terminates when the person becomes eligible for benefits under
144.3section135A.52 .
144.4 (c) To determine eligibility, the commissioner may require official documentation,
144.5including the person's federal form DD-214 or other official military discharge papers;
144.6correspondence from the United States Veterans Administration; birth certificate; marriage
144.7certificate; proof of enrollment at an eligible institution; signed affidavits; proof of residency;
144.8proof of identity; or any other official documentation the commissioner considers necessary
144.9to determine eligibility.
144.10 (d) The commissioner may deny eligibility or terminate benefits under this section to
144.11any person who has not provided sufficient documentation to determine eligibility for the
144.12program. An applicant may appeal the commissioner's eligibility determination or termination
144.13of benefits in writing to the commissioner at any time. The commissioner must rule on any
144.14application or appeal within 30 days of receipt of all documentation that the commissioner
144.15requires. The decision of the commissioner regarding an appeal is final. However, an
144.16applicant whose appeal of an eligibility determination has been rejected by the commissioner
144.17may submit an additional appeal of that determination in writing to the commissioner at
144.18any time that the applicant is able to provide substantively significant additional information
144.19regarding the applicant's eligibility for the program. An approval of an applicant's eligibility
144.20by the commissioner following an appeal by the applicant is not retroactively effective for
144.21more than one year or the semester of the person's original application, whichever is later.
144.22 (e) Upon receiving an application with insufficient documentation to determine eligibility,
144.23the commissioner must notify the applicant within 30 days of receipt of the application that
144.24the application is being suspended pending receipt by the commissioner of sufficient
144.25documentation from the applicant to determine eligibility.
144.26 Sec. 9. Minnesota Statutes 2016, section 197.791, subdivision 5, is amended to read:
144.27 Subd. 5.Benefit Educational assistance amount. (a) On approval by the commissioner
144.28of eligibility for the program, the applicant shall be awarded, on a funds-available basis,
144.29the educational assistance under the program for use at any time according to program rules
144.30at any eligible institution.
144.31 (b) The amount of educational assistance in any semester or term for an eligible person
144.32must be determined by subtracting from the eligible person's cost of attendance the amount
144.33the person received or was eligible to receive in that semester or term from:
145.1 (1) the federal Pell Grant;
145.2 (2) the state grant program under section136A.121 ; and
145.3 (3) any federal military or veterans educational benefits including but not limited to the
145.4Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, vocational
145.5rehabilitation benefits, and any other federal benefits associated with the person's status as
145.6a veteran, except veterans disability payments from the United States Veterans Administration
145.7and payments made under the Veterans Retraining Assistance Program (VRAP).
145.8 (c) The amount of educational assistance for any eligible person who is a full-time
145.9student must not exceed the following:
145.10(1) $1,000 per semester or term of enrollment;
145.11(2) (1) $3,000 per state fiscal year; and
145.12(3) (2) $10,000 in a lifetime.
145.13(d) A person eligible under this subdivision may use the benefit amounts for the following
145.14purposes:
145.15(1) licensing or certification tests, the successful completion of which demonstrates an
145.16individual's possession of the knowledge or skill required to enter into, maintain, or advance
145.17in employment in a predetermined and identified vocation or profession, provided that the
145.18tests and the licensing or credentialing organizations or entities that offer the tests are
145.19approved by the commissioner;
145.20(2) tests for admission to institutions of higher learning or graduate schools;
145.21(3) national tests providing an opportunity for course credit at institutions of higher
145.22learning;
145.23(4) a preparatory course for a test that is required or used for admission to an institution
145.24of higher education or a graduate program; and
145.25(5) any fee associated with the pursuit of a professional or educational objective specified
145.26in clauses (1) to (4).
145.27(e) If an eligible person receives benefits under subdivision 5, the eligible person's
145.28aggregate benefits under this subdivision and subdivision 5 must not exceed $10,000 in the
145.29eligible person's lifetime.
146.1(f) If an eligible person receives benefits under subdivision 5a, the eligible person's
146.2aggregate benefits under this subdivision and subdivision 5a must not exceed $10,000 in
146.3the eligible person's lifetime.
146.4 For a part-time student, the amount of educational assistance must not exceed $500 per
146.5semester or term of enrollment. For the purpose of this paragraph, a part-time undergraduate
146.6student is a student taking fewer than 12 credits or the equivalent for a semester or term of
146.7enrollment and a part-time graduate student is a student considered part time by the eligible
146.8institution the graduate student is attending. The minimum award for undergraduate and
146.9graduate students is $50 per term.
146.10 Sec. 10. Minnesota Statutes 2016, section 197.791, subdivision 5a, is amended to read:
146.11 Subd. 5a. Apprenticeship and on-the-job training. (a) The commissioner, in
146.12consultation with the commissioners of employment and economic development and labor
146.13and industry, shall develop and implement an apprenticeship and on-the-job training program
146.14to administer a portion of the Minnesota GI Bill program to pay benefit amounts to eligible
146.15applicants persons, as provided in this subdivision.
146.16(b) An "eligible employer" means an employer operating a qualifying apprenticeship or
146.17on-the-job training program that has been approved by the commissioner.
146.18(c) A person is eligible for apprenticeship and on-the-job training assistance under this
146.19subdivision if the person meets the criteria established under subdivision 4,paragraphs
146.20paragraph (a), clause (1), and (c) to (e). The commissioner may determine eligibility as
146.21provided in subdivision 4, paragraph (c), and may deny or terminate benefits as prescribed
146.22under subdivision 4, paragraphs (d) and (e). The amount of assistance paid to or on behalf
146.23of an eligible individual under this subdivision must not exceed the following:
146.24(1)$2,000 $3,000 per fiscal year for apprenticeship expenses;
146.25(2)$2,000 $3,000 per fiscal year for on-the-job training;
146.26(3) $1,000 for a job placement credit payable to an eligible employer upon hiring and
146.27completion of six consecutive months' employment of a person receiving assistance under
146.28this subdivision; and
146.29(4) $1,000 for a job placement credit payable to an eligible employer after a person
146.30receiving assistance under this subdivision has been employed by the eligible employer for
146.31at least 12 consecutive months as a full-time employee.
147.1No more than$3,000 $5,000 in aggregate benefits under this paragraph may be paid to or
147.2on behalf of an individual in one fiscal year, and not more than$9,000 $10,000 in aggregate
147.3benefits under this paragraph may be paid to or on behalf of an individual over any period
147.4of time.
147.5(d) Assistance for apprenticeship expenses and on-the-job training is available for
147.6qualifying programs, which must, at a minimum, meet the following criteria:
147.7(1) the training must be with an eligible employer;
147.8(2) the training must be documented and reported;
147.9(3) the training must reasonably be expected to lead to an entry-level position; and
147.10(4) the position must require at least six months of training to become fully trained.
147.13 Section 1. Minnesota Statutes 2016, section 10A.01, subdivision 12, is amended to read:
147.14 Subd. 12. Depository. "Depository" means a bank, savings association, or credit union
147.15organized under federal or state law and transacting business within this state. The
147.16depositories of a political committee or political fund include any depository in which the
147.17committee or fund has a savings, checking, or similar account, or purchases a money market
147.18certificate or certificate of deposit.
147.19 Sec. 2. Minnesota Statutes 2016, section 10A.01, subdivision 16, is amended to read:
147.20 Subd. 16. Election cycle. "Election cycle" means the period from January 1 following
147.21a general election for an office to December 31 following the next general election for that
147.22office, except that "election cycle" for a special election means the period from the date the
147.23special election writ is issued to60 15 days after the special election is held. For a regular
147.24election, the period from January 1 of the year prior to an election year through December
147.2531 of the election year is the "election segment" of the election cycle. Each other two-year
147.26segment of an election cycle is a "nonelection segment" of the election cycle. An election
147.27cycle that consists of two calendar years has only an election segment. The election segment
147.28of a special election cycle includes the entire special election cycle.
147.29EFFECTIVE DATE.This section is effective the day following final enactment and
147.30applies to any special election cycle that starts on or after that date.
148.1 Sec. 3. Minnesota Statutes 2016, section 10A.01, subdivision 26, is amended to read:
148.2 Subd. 26. Noncampaign disbursement. "Noncampaign disbursement" means a purchase
148.3or payment of money or anything of value made, or an advance of credit incurred, or a
148.4donation in kind received, by a principal campaign committee for any of the following
148.5purposes:
148.6 (1) payment for accounting and legal services;
148.7 (2) return of a contribution to the source;
148.8 (3) repayment of a loan made to the principal campaign committee by that committee;
148.9(4) return of a public subsidy;
148.10(5) (4) payment for food, beverages, and necessary utensils and supplies, entertainment,
148.11and facility rental for a fund-raising event;
148.12(6) (5) services for a constituent by a member of the legislature or a constitutional officer
148.13in the executive branch, including the costs of preparing and distributing a suggestion or
148.14idea solicitation to constituents, performed from the beginning of the term of office to
148.15adjournment sine die of the legislature in the election year for the office held, and half the
148.16cost of services for a constituent by a member of the legislature or a constitutional officer
148.17in the executive branch performed from adjournment sine die to 60 days after adjournment
148.18sine die;
148.19(7) (6) payment for food and beverages consumed by a candidate or volunteers while
148.20they are engaged in campaign activities;
148.21(8) (7) payment for food or a beverage consumed while attending a reception or meeting
148.22directly related to legislative duties;
148.23(9) (8) payment of expenses incurred by elected or appointed leaders of a legislative
148.24caucus in carrying out their leadership responsibilities;
148.25(10) (9) payment by a principal campaign committee of the candidate's expenses for
148.26serving in public office, other than for personal uses;
148.27(11) (10) costs of child care for the candidate's children when campaigning;
148.28(12) (11) fees paid to attend a campaign school;
148.29(13) (12) costs of a postelection party during the election year when a candidate's name
148.30will no longer appear on a ballot or the general election is concluded, whichever occurs
148.31first;
149.1(14) (13) interest on loans paid by a principal campaign committee on outstanding loans;
149.2(15) (14) filing fees;
149.3(16) (15) post-general election holiday or seasonal cards, thank-you notes, or
149.4advertisements in the news media mailed or published prior to the end of the election cycle;
149.5(17) (16) the cost of campaign material purchased to replace defective campaign material,
149.6if the defective material is destroyed without being used;
149.7(18) (17) contributions to a party unit;
149.8(19) (18) payments for funeral gifts or memorials;
149.9(20) (19) the cost of a magnet less than six inches in diameter containing legislator
149.10contact information and distributed to constituents;
149.11(21) (20) costs associated with a candidate attending a political party state or national
149.12convention in this state;
149.13(22) (21) other purchases or payments specified in board rules or advisory opinions as
149.14being for any purpose other than to influence the nomination or election of a candidate or
149.15to promote or defeat a ballot question; and
149.16(23) (22) costs paid to a third party for processing contributions made by a credit card,
149.17debit card, or electronic check.
149.18 The board must determine whether an activity involves a noncampaign disbursement
149.19within the meaning of this subdivision.
149.20 A noncampaign disbursement is considered to be made in the year in which the candidate
149.21made the purchase of goods or services or incurred an obligation to pay for goods or services.
149.22EFFECTIVE DATE.This section is effective July 1, 2017, and applies to elections
149.23held on or after that date.
149.24 Sec. 4. Minnesota Statutes 2016, section 10A.02, subdivision 13, is amended to read:
149.25 Subd. 13. Rules. (a) Chapter 14 applies to the board. The board may adopt rules to carry
149.26out the purposes of this chapter, if, before June 1, 2017, the board has published a notice
149.27of intent to adopt a rule without public hearing under section 14.22, subdivision 1, paragraph
149.28(a); 14.389, subdivision 2; or 14.3895, subdivision 3; a dual notice under section 14.22,
149.29subdivision 2; or a notice of hearing on a proposed rule under section 14.14.
150.1(b) After May 31, 2017, the board may only adopt rules that (1) incorporate specific
150.2changes set forth in applicable statutes when no interpretation of law is required, or (2)
150.3make changes to rules that do not alter the sense, meaning, or effect of a rule.
150.4(c) In addition to the notice required under chapter 14, the board shall notify the chairs
150.5and ranking minority members of the committees or subcommittees in the senate and house
150.6of representatives with primary jurisdiction over elections within seven calendar days of
150.7taking the following actions:
150.8(1) publication of a notice of intent to adopt rules or a notice of hearing;
150.9(2) publication of proposed rules in the State Register;
150.10(3) issuance of a statement of need and reasonableness; or
150.11(4) adoption of final rules.
150.12EFFECTIVE DATE.This section is effective the day following final enactment for
150.13rules for which a notice of intent to adopt a rule without public hearing under Minnesota
150.14Statutes, section 14.22, subdivision 1, paragraph (a); 14.389, subdivision 2; or 14.3895,
150.15subdivision 3; a dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a
150.16notice of hearing on a proposed rule under Minnesota Statutes, section 14.14, was published
150.17before June 1, 2017.
150.18 Sec. 5. Minnesota Statutes 2016, section 10A.025, subdivision 1a, is amended to read:
150.19 Subd. 1a. Electronic filing. (a) A report or statement required to be filed under this
150.20chapter may be filed electronically. The board shall adopt rulesto regulate on the technical
150.21aspects of regulating electronic filing andto ensure ensuring that the electronic filing process
150.22is secure.
150.23(b) A document filed by facsimile transmission or electronic filing system has the same
150.24force and effect as filing an original paper document.
150.25(c) In order to provide a secure environment for the submission of electronic files, the
150.26board must require that a filer use a personal identification code when submitting an
150.27electronic file. The board may also request the filer to provide a valid e-mail address in
150.28order to receive confirmation and verification messages from the board.
150.29(d) After an electronic file is processed by the board, the information contained in the
150.30electronic file becomes the property of the state subject to the terms of the Data Practices
150.31Act under chapter 13.
151.1(e) In the case of a filing by facsimile transmission, the filer must retain the original of
151.2the filed document and a record of the date and time of the transmission. If an electronic
151.3filing system is used to submit an electronic file to the board, the filer must retain as
151.4documentation the database and information on which the electronic submission of data is
151.5based. The database and records are subject to audit as provided in this chapter.
151.6(f) Within five days of a request by the board, any person filing a document by facsimile
151.7transmission or electronic filing system shall refile the document by one of the other filing
151.8methods provided in Minnesota Rules, part 4501.0500, subpart 1.
151.9(g) Technical problems that prevent the successful submission of a facsimile transmission
151.10or electronic file do not relieve the filer of the responsibility of meeting the requirements
151.11of this chapter. An audit trail that demonstrates that the facsimile transmission or electronic
151.12file was successfully submitted in a timely fashion may be used by the board to waive late
151.13filing fees.
151.14 Sec. 6. Minnesota Statutes 2016, section 10A.04, is amended by adding a subdivision to
151.15read:
151.16 Subd. 9. Reporting by multiple lobbyists representing the same entity. Clauses (1)
151.17to (6) apply when a single individual, association, political subdivision, or public higher
151.18education system is represented by more than one lobbyist.
151.19(1) The entity must appoint one designated lobbyist to report lobbyist disbursements
151.20made by the entity. The designated lobbyist must indicate that status on the periodic reports
151.21of lobbyist disbursements.
151.22(2) A reporting lobbyist may consent to report on behalf of one or more other lobbyists
151.23for the same entity, in which case, the other lobbyists are persons whose activities the
151.24reporting lobbyist must disclose and are subject to the disclosure requirements of subdivision
151.253. Lobbyist disbursement reports filed by a reporting lobbyist must include the names and
151.26registration numbers of the other lobbyists whose activities are included in the report.
151.27(3) Lobbyists whose activities are accounted for by a reporting lobbyist are not required
151.28to file lobbyist disbursement reports.
151.29(4) A lobbyist whose lobbying disbursements are provided to the board through a
151.30reporting lobbyist must supply all relevant information on disbursements to the reporting
151.31lobbyist no later than five days before the prescribed filing date.
152.1(5) The reporting periods and due dates for a reporting lobbyist are those provided in
152.2subdivision 2. The late filing provisions in subdivision 5 apply to reports required by this
152.3subdivision.
152.4(6) The reporting lobbyist must indicate the names and registration numbers of any
152.5lobbyists who did not provide their lobbying disbursements for inclusion in a report. The
152.6late filing provisions in subdivision 5 apply to lobbyists who fail to report information to
152.7the reporting lobbyist.
152.8 Sec. 7. Minnesota Statutes 2016, section 10A.071, subdivision 1, is amended to read:
152.9 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.
152.10(b) "Gift" means money, real or personal property, a service, a loan, a forbearance or
152.11forgiveness of indebtedness, or a promise of future employment, that is given and received
152.12without the giver receiving consideration of equal or greater value in return.
152.13(c) "Official" means a public official, an employee of the legislature, or a local official
152.14of a metropolitan governmental unit.
152.15(d) "Plaque" means a decorative item with an inscription recognizing an individual for
152.16an accomplishment.
152.17 Sec. 8. Minnesota Statutes 2016, section 10A.09, subdivision 5, is amended to read:
152.18 Subd. 5. Form. (a) A statement of economic interest required by this section must be
152.19on a form prescribed by the board. The individual filing must provide the following
152.20information:
152.21(1) name, address, occupation, and principal place of business;
152.22(2) the name of each associated business and the nature of that association;
152.23(3) a listing of all real property within the state, excluding homestead property, in which
152.24the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as buyer or
152.25seller, or an option to buy, whether direct or indirect, if the interest is valued in excess of
152.26$2,500; or (ii) an option to buy, if the property has a fair market value of more than $50,000;
152.27(4) a listing of all real property within the state in which a partnership of which the
152.28individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed as
152.29buyer or seller, or an option to buy, whether direct or indirect, if the individual's share of
152.30the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the property
152.31has a fair market value of more than $50,000. A listing under this clause or clause (3) must
153.1indicate the street address and the municipality or the section, township, range and
153.2approximate acreage, whichever applies, and the county in which the property is located;
153.3(5) a listing of any investments, ownership, or interests in property connected with
153.4pari-mutuel horse racing in the United States and Canada, including a racehorse, in which
153.5the individual directly or indirectly holds a partial or full interest or an immediate family
153.6member holds a partial or full interest;
153.7(6) a listing of the principal business or professional activity category of each business
153.8from which the individual receives more than $50 in any month as an employee, if the
153.9individual has an ownership interest of 25 percent or more in the business;and
153.10(7) a listing of each principal business or professional activity category from which the
153.11individual received compensation of more than $2,500 in the past 12 months as an
153.12independent contractor.; and
153.13(8) the full name of each security with a value of more than $2,500 owned in part or in
153.14full by the public official at any time during the reporting period.
153.15(b) The business or professional categories for purposes of paragraph (a), clauses (6)
153.16and (7), must be the general topic headings used by the federal Internal Revenue Service
153.17for purposes of reporting self-employment income on Schedule C. This paragraph does not
153.18require an individual to report any specific code number from that schedule. Any additional
153.19principal business or professional activity category may only be adopted if the category is
153.20enacted by law.
153.21(c) For the purpose of an original statement of economic interest, "compensation in any
153.22month" includes only compensation received in the calendar month immediately preceding
153.23the date of appointment as a public official or filing as a candidate.
153.24(d) For the purpose of calculating the amount of compensation received from any single
153.25source in a single month, the amount shall include the total amount received from the source
153.26during the month, whether or not the amount covers compensation for more than one month.
153.27 Sec. 9. Minnesota Statutes 2016, section 10A.09, subdivision 6, is amended to read:
153.28 Subd. 6. Annual statement. (a) Each individual who is required to file a statement of
153.29economic interest must also file an annual statement by the last Monday in January of each
153.30year that the individual remains in office. The annual statement must cover the period
153.31through December 31 of the year prior to the year when the statement is due. The annual
153.32statement must include the amount of each honorarium in excess of $50 received since the
153.33previous statement and the name and address of the source of the honorarium. The board
154.1must maintain each annual statement of economic interest submitted by an officeholder in
154.2the same file with the statement submitted as a candidate.
154.3(b) For the purpose of annual statements of economic interest to be filed, "compensation
154.4in any month" includes compensation and honoraria received in any month between the
154.5end of the period covered in the preceding statement of economic interest and the end of
154.6the current period.
154.7(c) An individual must file the annual statement of economic interest required by this
154.8subdivision to cover the period for which the individual served as a public official even
154.9though at the time the statement was filed, the individual is no longer holding that office as
154.10a public official.
154.11 Sec. 10. Minnesota Statutes 2016, section 10A.105, subdivision 1, is amended to read:
154.12 Subdivision 1. Single committee. A candidate must not accept contributions from a
154.13source, other than self, in aggregate in excess of $750or accept a public subsidy unless the
154.14candidate designates and causes to be formed a single principal campaign committee for
154.15each office sought. A candidate may not authorize, designate, or cause to be formed any
154.16other political committee bearing the candidate's name or title or otherwise operating under
154.17the direct or indirect control of the candidate. However, a candidate may be involved in the
154.18direct or indirect control of a party unit.
154.19EFFECTIVE DATE.This section is effective July 1, 2017, and applies to elections
154.20held on or after that date.
154.21 Sec. 11. Minnesota Statutes 2016, section 10A.15, subdivision 1, is amended to read:
154.22 Subdivision 1. Anonymous contributions. A political committee, political fund, principal
154.23campaign committee, or party unit may not retain an anonymous contribution in excess of
154.24$20, but must forward it to the board for deposit in the generalaccount of the state elections
154.25campaign account fund.
154.26 Sec. 12. Minnesota Statutes 2016, section 10A.15, is amended by adding a subdivision to
154.27read:
154.28 Subd. 6. Contributions from Hennepin County registered associations. In lieu of
154.29registration with the board, an association registered with the Hennepin County filing officer
154.30under sections 383B.041 to 383B.058 that makes contributions of more than $500 to a
154.31committee or fund in a calendar year may notify the recipient committee of its registration
155.1with Hennepin County, including its registration number, and instruct the recipient committee
155.2to include the notice when the recipient committee discloses receipt of the contribution.
155.3 Sec. 13. [10A.155] VALUE OF CONTRIBUTIONS OF AUTOMOBILE USE.
155.4Automobile use provided to a committee by an individual may be valued at the lowest
155.5rate used by the state to reimburse its employees for automobile use. Alternatively, the value
155.6of the automobile may be calculated as the actual cost of fuel, maintenance, repairs, and
155.7insurance directly related to the use of the automobile. An automobile provided by an
155.8association must be valued at the fair market value for renting an equivalent automobile.
155.9 Sec. 14. Minnesota Statutes 2016, section 10A.20, subdivision 3, is amended to read:
155.10 Subd. 3. Contents of report. (a) The report required by this section must include each
155.11of the items listed in paragraphs (b) to(o) (q) that are applicable to the filer. The board shall
155.12prescribe forms based on filer type indicating which of those items must be included on the
155.13filer's report.
155.14(b) The report must disclose the amount of liquid assets on hand at the beginning of the
155.15reporting period.
155.16(c) The report must disclose the name, address, employer, or occupation if self-employed,
155.17and registration number if registered with the board, of each individual or association that
155.18has made one or more contributions to the reporting entity, including the purchase of tickets
155.19for a fund-raising effort, that in aggregate within the year exceed $200 for legislative or
155.20statewide candidates or more than $500 for ballot questions, together with the amount and
155.21date of each contribution, and the aggregate amount of contributions within the year from
155.22each source so disclosed. A donation in kind must be disclosed at its fair market value. An
155.23approved expenditure must be listed as a donation in kind. A donation in kind is considered
155.24consumed in the reporting period in which it is received. The names of contributors must
155.25be listed in alphabetical order. Contributions from the same contributor must be listed under
155.26the same name. When a contribution received from a contributor in a reporting period is
155.27added to previously reported unitemized contributions from the same contributor and the
155.28aggregate exceeds the disclosure threshold of this paragraph, the name, address, and
155.29employer, or occupation if self-employed, of the contributor must then be listed on the
155.30report.
155.31(d) The report must disclose the sum of contributions to the reporting entity during the
155.32reporting period.
156.1(e) The report must disclose each loan made or received by the reporting entity within
156.2the year in aggregate in excess of $200, continuously reported until repaid or forgiven,
156.3together with the name, address, occupation, principal place of business, if any, and
156.4registration number if registered with the board of the lender and any endorser and the date
156.5and amount of the loan. If a loan made to the principal campaign committee of a candidate
156.6is forgiven or is repaid by an entity other than that principal campaign committee, it must
156.7be reported as a contribution for the year in which the loan was made.
156.8(f) The report must disclose each receipt over $200 during the reporting period not
156.9otherwise listed under paragraphs (c) to (e).
156.10(g) The report must disclose the sum of all receipts of the reporting entity during the
156.11reporting period.
156.12(h) The report must disclose the name, address, and registration number if registered
156.13with the board of each individual or association to whom aggregate expenditures, approved
156.14expenditures, independent expenditures, and ballot question expenditures have been made
156.15by or on behalf of the reporting entity within the year in excess of $200, together with the
156.16amount, date, and purpose of each expenditure and the name and address of, and office
156.17sought by, each candidate on whose behalf the expenditure was made, identification of the
156.18ballot question that the expenditure was intended to promote or defeat and an indication of
156.19whether the expenditure was to promote or to defeat the ballot question, and in the case of
156.20independent expenditures made in opposition to a candidate, the candidate's name, address,
156.21and office sought. A reporting entity making an expenditure on behalf of more than one
156.22candidate for state or legislative office must allocate the expenditure among the candidates
156.23on a reasonable cost basis and report the allocation for each candidate.
156.24(i) The report must disclose the sum of all expenditures made by or on behalf of the
156.25reporting entity during the reporting period.
156.26(j) The report must disclose the amount and nature of an advance of credit incurred by
156.27the reporting entity, continuously reported until paid or forgiven. If an advance of credit
156.28incurred by the principal campaign committee of a candidate is forgiven by the creditor or
156.29paid by an entity other than that principal campaign committee, it must be reported as a
156.30donation in kind for the year in which the advance of credit was made.
156.31(k) The report must disclose the name, address, and registration number if registered
156.32with the board of each political committee, political fund, principal campaign committee,
156.33or party unit to which contributions have been made that aggregate in excess of $200 within
156.34the year and the amount and date of each contribution.
157.1(l) The report must disclose the sum of all contributions made by the reporting entity
157.2during the reporting period.
157.3(m) The report must disclose the name, address, and registration number if registered
157.4with the board of each individual or association to whom noncampaign disbursements have
157.5been made that aggregate in excess of $200 within the year by or on behalf of the reporting
157.6entity and the amount, date, and purpose of each noncampaign disbursement.
157.7(n) The report must disclose the sum of all noncampaign disbursements made within
157.8the year by or on behalf of the reporting entity.
157.9(o) The report must disclose the name and address of a nonprofit corporation that provides
157.10administrative assistance to a political committee or political fund as authorized by section
157.11211B.15, subdivision 17
, the type of administrative assistance provided, and the aggregate
157.12fair market value of each type of assistance provided to the political committee or political
157.13fund during the reporting period.
157.14(p) Legislative, statewide, and judicial candidates, party units, and political committees
157.15and funds must itemize contributions that in aggregate within the year exceed $200 for
157.16legislative or statewide candidates or more than $500 for ballot questions on reports submitted
157.17to the board. The itemization must include the date on which the contribution was received,
157.18the individual or association that provided the contribution, and the address of the contributor.
157.19Additionally, the itemization for a donation in kind must provide a description of the item
157.20or service received. Contributions that are less than the itemization amount must be reported
157.21as an aggregate total.
157.22(q) Legislative, statewide, and judicial candidates, party units, political committees and
157.23funds, and committees to promote or defeat a ballot question must itemize expenditures and
157.24noncampaign disbursements that in aggregate exceed $200 in a calendar year on reports
157.25submitted to the board. The itemization must include the date on which the committee made
157.26or became obligated to make the expenditure or disbursement, the name and address of the
157.27vendor that provided the service or item purchased, and a description of the service or item
157.28purchased. Expenditures and noncampaign disbursements must be listed on the report
157.29alphabetically by vendor.
157.30 Sec. 15. Minnesota Statutes 2016, section 10A.20, subdivision 15, is amended to read:
157.31 Subd. 15. Equitable relief. A candidate whose opponent does not timely file the report
157.32due 15 days before the primary, or the report due ten days before the general election,or
157.33the notice required under section
10A.25, subdivision 10, may petition the district court for
158.1immediate equitable relief to enforce the filing requirement. A prevailing party under this
158.2subdivision may be awarded attorney fees and costs by the court.
158.3 Sec. 16. Minnesota Statutes 2016, section 10A.245, subdivision 2, is amended to read:
158.4 Subd. 2. Termination by board. The board may terminate the registration of a principal
158.5campaign committee, party unit, political committee, or political fund found to be inactive
158.6under this section 60 days after sending written notice of inactivity by certified mail to the
158.7affected association at the last address on record with the board for that association. Within
158.860 days after the board sends notice under this section, the affected association must dispose
158.9of its assets as provided in this subdivision. The assets of the principal campaign committee,
158.10party unit, or political committee must be used for the purposes authorized by this chapter
158.11or section211B.12 or must be liquidated and deposited in the general account of the state
158.12elections campaign account fund. The assets of an association's political fund that were
158.13derived from the association's general treasury money revert to the association's general
158.14treasury. Assets of a political fund that resulted from contributions to the political fund must
158.15be used for the purposes authorized by this chapter or section211B.12 or must be liquidated
158.16and deposited in the generalaccount of the state elections campaign account fund.
158.17 Sec. 17. Minnesota Statutes 2016, section 10A.25, subdivision 1, is amended to read:
158.18 Subdivision 1. Limits are voluntary. The expenditure limits imposed by this section
158.19apply only to a candidate who has signedan agreement a pledge under section
10A.322 to
158.20be bound by them as a condition of receiving a public subsidy for the candidate's
campaign.
158.21 Sec. 18. Minnesota Statutes 2016, section 10A.25, subdivision 2, is amended to read:
158.22 Subd. 2. Amounts. (a) In a segment of an election cycle, the principal campaign
158.23committee of the candidate must not make campaign expenditures nor permit approved
158.24expenditures to be made on behalf of the candidate that result in aggregate expenditures in
158.25excess of the following:
158.26(1) for governor and lieutenant governor, running together, $3,651,200 in the election
158.27segment and $1,564,800 in the nonelection segment;
158.28(2) for attorney general, $626,000 in the election segment and $208,700 in the nonelection
158.29segment;
158.30(3) for secretary of state and state auditor, separately, $417,300 in the election segment
158.31and $104,400 in the nonelection segment;
159.1(4) for state senator, $94,700 in the election segment and $31,600 in a nonelection
159.2segment;
159.3(5) for state representative, $63,100 in the election segment.
159.4(b) In addition to the amount in paragraph (a), clause (1), a candidate for endorsement
159.5for the office of lieutenant governor at the convention of a political party may make campaign
159.6expenditures and approved expenditures of five percent of that amount to seek endorsement.
159.7(c) If a special election cycle occurs during a general election cycle, expenditures by or
159.8on behalf of a candidate in the special election do not count as expenditures by or on behalf
159.9of the candidate in the general election.
159.10(d) The expenditure limits in this subdivision for an office are increased by ten percent
159.11for a candidate who has not previously held the same office, whose name has not previously
159.12been on the primary or general election ballot for that office, and who has not in the past
159.13ten years raised or spent more than $750 in a run for any other office whose territory now
159.14includes a population that is more than one-third of the population in the territory of the
159.15new office. Candidates who qualify for first-time candidate status receive a ten percent
159.16increase in the campaign expenditure limit in all segments of the applicable election cycle.
159.17In the case of a legislative candidate, the office is that of a member of the house of
159.18representatives or senate without regard to any specific district.
159.19 Sec. 19. Minnesota Statutes 2016, section 10A.25, subdivision 10, is amended to read:
159.20 Subd. 10. Effect of opponent's conduct. (a) After the deadline for filing aspending
159.21limit agreement pledge under section
10A.322 , a candidate who has agreed pledged to be
159.22bound by the expenditure limits imposed by this sectionas a condition of receiving a public
159.23subsidy for the candidate's campaign may choose to be released from the expenditure limits
159.24but remain eligible to receive a public subsidy if the candidate has an opponent who has
159.25notagreed pledged to be bound by the limits and has received contributions or made or
159.26become obligated to make expenditures during that election cycle in excess of the following
159.27limits:
159.28(1) up to the close of the reporting period before the primary election, receipts or
159.29expenditures equal to 20 percent of the election segment expenditure limit for that office
159.30as set forth in subdivision 2; or
159.31(2) after the close of the reporting period before the primary election, cumulative receipts
159.32or expenditures during that election cycle equal to 50 percent of the election cycle expenditure
159.33limit for that office as set forth in subdivision 2.
160.1Before the primary election, a candidate's "opponents" are only those who will appear
160.2on the ballot of the same party in the primary election.
160.3(b) A candidate who has notagreed pledged to be bound by expenditure limits, or the
160.4candidate's principal campaign committee, must file written notice with the board and
160.5provide written notice to any opponent of the candidate for the same office within 24 hours
160.6of exceeding the limits in paragraph (a). The notice must state only that the candidate or
160.7candidate's principal campaign committee has received contributions or made or become
160.8obligated to make campaign expenditures in excess of the limits in paragraph (a).
160.9(c) Upon receipt of the notice, a candidate who hadagreed pledged to be bound by the
160.10limits may file with the board a notice that the candidate chooses to be no longer bound by
160.11the expenditure limits. A notice of a candidate's choice not to be bound by the expenditure
160.12limits that is based on the conduct of an opponent in the state primary election may not be
160.13filed more than one day after the State Canvassing Board has declared the results of the
160.14state primary.
160.15(d) A candidate who hasagreed pledged to be bound by the expenditure limits imposed
160.16by this section and whose opponent in the general election has chosen, as provided in
160.17paragraph (c), not to be bound by the expenditure limits because of the conduct of an
160.18opponent in the primary election is no longer bound by the limitsbut remains eligible to
160.19receive a public subsidy.
160.20 Sec. 20. Minnesota Statutes 2016, section 10A.257, subdivision 1, is amended to read:
160.21 Subdivision 1. Unused funds. For election cycles ending on or before December 31,
160.222018, after all campaign expenditures and noncampaign disbursements for an election cycle
160.23have been made, an amount up to 25 percent of the 2016 election cycle expenditure limit
160.24for the office may be carried forward. Any remaining amount up to the total amount of the
160.252016 public subsidy from the state elections campaign fund must be returned to the state
160.26treasury for credit to the general fund under Minnesota Statutes 2016, section10A.324 . Any
160.27remaining amount in excess of the total 2016 public subsidy must be contributed to the state
160.28elections campaign account or a political party for multicandidate expenditures as defined
160.29in section10A.275 .
160.30EFFECTIVE DATE.This section is effective July 1, 2017, and applies to elections
160.31held on or after that date.
161.1 Sec. 21. Minnesota Statutes 2016, section 10A.27, subdivision 10, is amended to read:
161.2 Subd. 10. Limited personal contributions. A candidate who signsan agreement a
161.3pledge under section10A.322 may not contribute to the candidate's own campaign during
161.4a segment of an election cycle more than five times the candidate's contribution limit for
161.5that segment under subdivision 1.
161.6 Sec. 22. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
161.7read:
161.8 Subd. 11a. Contributions from the sale of goods or services. Proceeds from the sale
161.9of goods or services by a political committee must be reported as a contribution to that
161.10committee, as provided in section 10A.13. A political committee selling goods or services
161.11must disclose to each purchaser, prior to a sale, that proceeds may be used to make a
161.12contribution to an independent expenditure political committee or fund, or may be used by
161.13the committee for other political purposes as authorized by law, and must offer the purchaser
161.14an opportunity to review the committee's most recent report submitted to the board under
161.15section 10A.20. A copy of the report must be clearly posted in a conspicuous location on
161.16at least 8.5-inch by 11-inch sized paper and available for public inspection at the point of
161.17sale.
161.18 Sec. 23. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
161.19read:
161.20 Subd. 16a. Return of contributions after merger of governor and lieutenant governor
161.21funds. Funds transferred to the joint committee for candidates for governor and lieutenant
161.22governor that result in aggregate contributions in excess of the applicable limits may be
161.23returned to the contributor within 90 days of the transfer of funds to the joint committee.
161.24 Sec. 24. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
161.25read:
161.26 Subd. 16b. Special election contribution limits. Election segment contribution limits
161.27set forth in this section apply to a special election cycle.
161.28 Sec. 25. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
161.29read:
161.30 Subd. 16c. Contribution limits apply independently. Contribution limits apply
161.31independently for election segments, nonelection segments, and special election cycles.
162.1 Sec. 26. Minnesota Statutes 2016, section 10A.28, subdivision 3, is amended to read:
162.2 Subd. 3. Conciliation agreement. If the board finds that there is reason to believe that
162.3excess expenditures have been made or excess contributions have been accepted contrary
162.4to subdivision1 or 2, the board must make every effort for a period of at least 14 days after
162.5its finding to correct the matter by informal methods of conference and conciliation and to
162.6enter a conciliation agreement with the person involved. A conciliation agreement under
162.7this subdivision is a matter of public record. Unless violated, a conciliation agreement is a
162.8bar to any civil proceeding under subdivision 4.
162.9 Sec. 27. Minnesota Statutes 2016, section 10A.31, is amended by adding a subdivision to
162.10read:
162.11 Subd. 7b. Failure to repay. A candidate who fails to repay money required by the
162.12agreement cannot be paid additional public subsidy funds during the current or future election
162.13cycles until the entirety of the unexpended funds and any associated collection fees are
162.14either repaid to the board or discharged by court action.
162.15 Sec. 28. Minnesota Statutes 2016, section 10A.322, subdivision 1, is amended to read:
162.16 Subdivision 1.Agreement Pledge by candidate. (a) As a condition of receiving a public
162.17subsidy, A candidate must may sign and file with the board a written agreement pledge in
162.18which the candidate agrees that the candidate will comply with sections10A.25 ;
10A.27,
162.19subdivision 10 ;
10A.324; and
10A.38 until the dissolution of the principal campaign
162.20committee of the candidate or the end of the first election cycle completed after the pledge
162.21was filed, whichever occurs first.
162.22 (b) Before the first day of filing for office, the board must forwardagreement pledge
162.23forms to all filing officers. The board must also provideagreement pledge forms to candidates
162.24on request at any time. The candidate must file theagreement pledge with the board at least
162.25three weeks before the candidate's state primary.An agreement A pledge may not be filed
162.26after that date.An agreement The board must post a copy of each pledge filed by a candidate
162.27on the board's Web site. For purposes of public posting, a pledge once filed may not be
162.28rescinded.
162.29(c) The board must notify the commissioner of revenue of any agreement signed under
162.30this subdivision.
162.31(d) Notwithstanding paragraph (b), if a vacancy occurs that will be filled by means
of
162.32a special election and the filing period does not coincide with the filing period
for the general
163.1election, a candidate may sign and submit a spending limit agreement not later than
the day
163.2after the close of the filing period for the special election for which the candidate
filed.
163.3 (c) A pledge filed by a candidate under this subdivision is a voluntary agreement by the
163.4candidate to comply with the sections listed in paragraph (a). Compliance with the terms
163.5of a pledge, or any provisions of law cited within the pledge, may not be the subject of an
163.6advisory opinion issued under section 10A.02, subdivision 12, and is not subject to an audit,
163.7investigation, or enforcement action by the board under section 10A.02, 10A.022, or any
163.8other applicable law.
163.9 Sec. 29. Minnesota Statutes 2016, section 10A.38, is amended to read:
163.1010A.38 CAPTIONING OF CAMPAIGN ADVERTISEMENTS.
163.11 (a) This section applies to a campaign advertisement by a candidate whois governed
163.12by an agreement has filed a pledge under section
10A.322 .
163.13 (b) "Campaign advertisement" means a professionally produced visual or audio recording
163.14of two minutes or less produced by the candidate for the purpose of influencing the
163.15nomination or election of a candidate.
163.16 (c) A campaign advertisement that is disseminated as an advertisement by broadcast or
163.17cable television must include closed captioning for deaf and hard-of-hearing viewers, unless
163.18the candidate has filed with the board before the advertisement is disseminated a statement
163.19setting forth the reasons for not doing so. A campaign advertisement that is disseminated
163.20as an advertisement to the public on the candidate's Web site must include closed captioning
163.21for deaf and hard-of-hearing viewers, unless the candidate has posted on the Web site a
163.22transcript of the spoken content of the advertisement or the candidate has filed with the
163.23board before the advertisement is disseminated a statement setting forth the reasons for not
163.24doing so. A campaign advertisement must not be disseminated as an advertisement by radio
163.25unless the candidate has posted on the candidate's Web site a transcript of the spoken content
163.26of the advertisement or the candidate has filed with the board before the advertisement is
163.27disseminated a statement setting forth the reasons for not doing so.
163.28 Sec. 30. VOTING EQUIPMENT GRANT.
163.29 Subdivision 1. Voting equipment grant account. A voting equipment grant program
163.30is established. The secretary of state must use money appropriated for the program to provide
163.31grants to counties and municipalities as authorized by this section. Funds appropriated for
163.32the grant are available until June 30, 2020.
164.1 Subd. 2. Authorized equipment. (a) A county or municipality may apply to receive a
164.2grant under this section for the purchase or lease of the following equipment:
164.3(1) electronic roster equipment and software that meets the technology requirements of
164.4Minnesota Statutes, section 201.225, subdivision 2;
164.5(2) assistive voting technology; or
164.6(3) automatic tabulating equipment.
164.7A purchase or lease of equipment is eligible for a grant under this section if the purchase
164.8is made, or lease entered, on or after July 1, 2017. A county or municipality that has
164.9purchased or leased eligible equipment before July 1, 2017, may apply for reimbursement.
164.10(b) The grant funds must not be used for maintenance or repair of voting equipment.
164.11 Subd. 3. Amount of grant. A county or municipal government is eligible to receive a
164.12grant equal to 75 percent of the total cost of the electronic roster equipment and software
164.13or 50 percent of the total cost for assistive voting technology or automatic tabulating
164.14equipment. The secretary of state must first award grants to counties and municipalities
164.15leasing or purchasing new equipment or software. If funds remain after awarding grants for
164.16new equipment or software, the secretary of state must use the remaining funds for grants
164.17to counties and municipalities seeking reimbursement for equipment or software already
164.18purchased.
164.19 Subd. 4. Application for grant; certification of costs. (a) To receive a grant, a county
164.20or municipality must submit an application to the secretary of state. The secretary of state
164.21shall prescribe a form for this purpose. At a minimum, the application must describe:
164.22(1) the type of equipment or software proposed for purchase or lease;
164.23(2) the expected total cost of the equipment or software, and sources of funding that will
164.24be used for the purchase or lease in addition to the grant funding provided by this section;
164.25(3) the county's or municipality's plan to address the long-term maintenance, repair, and
164.26eventual replacement costs for the equipment or software without using any funds from the
164.27grant for these purposes; and
164.28(4) any other information required by the secretary of state.
164.29(b) The secretary of state must establish:
164.30(1) a deadline for receipt of grant applications;
164.31(2) a procedure for awarding and distributing grants;
165.1(3) criteria for the fair, proportional distribution of grants if the funds do not completely
165.2cover the requests for a particular type of equipment; and
165.3(4) a process for verifying the proper use of the grants after distribution.
165.4 Subd. 5. Report to legislature. No later than January 15, 2018, and annually thereafter
165.5until the appropriations provided for grants under this section have been exhausted, the
165.6secretary of state must submit a report to the legislative committees with jurisdiction over
165.7elections policy on grants awarded by this section. The report must detail each grant awarded,
165.8including the jurisdiction, the amount of the grant, and the type of equipment or software
165.9purchased.
165.10 Sec. 31. REPEALER.
165.11 Subdivision 1. Campaign subsidy. Minnesota Statutes 2016, sections 10A.28,
165.12subdivision 1; 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b,
165.13and 11; 10A.315; 10A.321; 10A.322, subdivisions 2 and 4; 10A.323; and 10A.324,
165.14subdivisions 1 and 3, and Minnesota Rules, parts 4503.1400, subparts 2, 3, 4, 5, 6, 7, 8, and
165.159; and 4503.1450, are repealed effective July 1, 2017, and apply to elections held on or after
165.16that date. Money in the account under Minnesota Statutes, section 10A.30, on June 30,
165.172017, cancels to the general fund, and amounts designated under Minnesota Statutes, section
165.1810A.31, on income tax and property tax refund returns filed after June 30, 2017, are not
165.19effective and remain in the general fund.
165.20 Subd. 2. Rules. Minnesota Rules, parts 4501.0300, subpart 3; 4501.0500, subpart 2;
165.214503.0200, subpart 6; 4503.0300, subpart 4; 4503.0400, subpart 1; 4503.0500, subparts 5
165.22and 8; 4503.0700, subparts 2 and 3; 4503.1300, subpart 5; 4503.1600; 4503.1700; 4503.1800;
165.234505.0100, subpart 3; 4505.0900, subparts 2, 3, 4, 5, 6, and 7; 4511.0500, subpart 2;
165.244512.0100, subparts 2, 4, and 5; and 4525.0210, subpart 1, are repealed."
165.25Renumber the sections in sequence and correct the internal references
165.26Amend the title accordingly
165.27Delete the title and insert:
165.29relating to the operation of state government; appropriating money for the
165.30legislature, governor's office, state auditor, attorney general, secretary of state,
165.31certain agencies, boards, councils, and retirement funds; changing provisions in
165.32state government operations; making technical changes to state budgeting terms;
165.33changing administrative rules provisions; changing provisions in veterans affairs,
165.34campaign finance, and elections;amending Minnesota Statutes 2016, sections
165.353.305, subdivision 1; 3.842, subdivision 4a; 3.855, subdivision 2; 3.8843,
165.36subdivision 7; 3.971, subdivisions 2, 6; 3.972, by adding a subdivision; 3.98,
166.1subdivisions 1, 4; 3.987, subdivision 1; 6.481, subdivisions 3, 6; 6.56, subdivision
166.22; 6.581, subdivision 4; 10A.01, subdivisions 12, 16, 26; 10A.02, subdivision 13;
166.310A.025, subdivision 1a; 10A.04, by adding a subdivision; 10A.071, subdivision
166.41; 10A.09, subdivisions 5, 6; 10A.105, subdivision 1; 10A.15, subdivision 1, by
166.5adding a subdivision; 10A.20, subdivisions 3, 15; 10A.245, subdivision 2; 10A.25,
166.6subdivisions 1, 2, 10; 10A.257, subdivision 1; 10A.27, subdivision 10, by adding
166.7subdivisions; 10A.28, subdivision 3; 10A.31, by adding a subdivision; 10A.322,
166.8subdivision 1; 10A.38; 14.002; 14.02, by adding a subdivision; 14.05, subdivisions
166.91, 2, 6, 7, by adding subdivisions; 14.101, subdivision 1; 14.116; 14.125; 14.127;
166.1014.131; 14.14, subdivisions 1a, 2a; 14.18, subdivision 1; 14.19; 14.22, subdivision
166.111; 14.23; 14.25, subdivision 1; 14.26; 14.27; 14.365; 14.381, subdivision 3; 14.388,
166.12subdivisions 1, 2; 14.389, subdivision 3; 14.44; 14.45; 14.51; 14.57; 15.0596;
166.1315.191, subdivisions 1, 3; 16A.065; 16A.13, subdivision 2a; 16A.134; 16A.15,
166.14subdivision 3; 16A.17, subdivision 5; 16A.272, subdivision 3; 16A.40; 16A.42,
166.15subdivisions 2, 4, by adding a subdivision; 16A.56; 16A.671, subdivision 1; 16A.90;
166.1616B.04, subdivision 2; 16B.055, subdivision 1; 16B.335, subdivision 1; 16B.37,
166.17subdivision 4; 16B.371; 16B.4805, subdivisions 2, 4; 16B.97, by adding a
166.18subdivision; 16D.03, subdivision 2; 16D.09, subdivision 1; 16E.016; 16E.0466;
166.1921.116; 43A.17, subdivision 11; 43A.24, by adding a subdivision; 43A.30,
166.20subdivision 2; 43A.49; 49.24, subdivisions 13, 16; 69.031, subdivision 1; 80A.65,
166.21subdivision 9; 84A.23, subdivision 4; 84A.33, subdivision 4; 84A.40; 84A.52;
166.2288.12, subdivision 1; 94.522; 94.53; 116J.64, subdivision 7; 126C.55, subdivisions
166.232, 9; 126C.68, subdivision 3; 126C.69, subdivision 14; 127A.34, subdivision 1;
166.24127A.40; 136F.46, subdivision 1; 136F.70, subdivision 3; 138.69; 155A.30,
166.25subdivision 5; 162.08, subdivisions 10, 11; 162.14, subdivisions 4, 5; 162.18,
166.26subdivision 4; 162.181, subdivision 4; 163.051, subdivision 3; 176.181, subdivision
166.272; 176.581; 176.591, subdivision 3; 179A.20, by adding a subdivision; 190.19,
166.28subdivisions 2, 2a; 192.55; 196.05, subdivision 1; 196.052; 197.236, subdivision
166.299; 197.791, subdivisions 2, 3, 4, 5, 5a; 198.16; 237.30; 241.13, subdivision 1;
166.30244.19, subdivision 7; 256B.20; 260B.331, subdivision 2; 260C.331, subdivision
166.312; 270C.13, subdivision 1; 273.121, subdivision 1; 287.08; 297I.10, subdivision
166.321; 299C.21; 348.05; 352.04, subdivision 9; 352.05; 352.115, subdivision 12; 352.12,
166.33subdivision 13; 353.05; 353.27, subdivisions 3c, 7; 353.505; 354.42, subdivision
166.347; 354.52, subdivisions 4, 4b; 401.15, subdivision 1; 446A.086, subdivision 4;
166.35446A.16, subdivision 1; 462A.18, subdivision 1; 471.6161, subdivision 8; 471.617,
166.36subdivision 2; 475A.04, subdivision 1; 508.12, subdivision 1; 518A.79, by adding
166.37a subdivision; 525.841; Laws 2016, chapter 127, section 8; proposing coding for
166.38new law in Minnesota Statutes, chapters 2; 3; 6; 10A; 14; 15; 16A; 16B; 43A;
166.39118A; 197; repealing Minnesota Statutes 2016, sections 4.46; 6.581, subdivision
166.401; 10A.28, subdivision 1; 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7,
166.417a, 10, 10a, 10b, 11; 10A.315; 10A.321; 10A.322, subdivisions 2, 4; 10A.323;
166.4210A.324, subdivisions 1, 3; 14.05, subdivision 5; Minnesota Rules, parts 4501.0300,
166.43subpart 3; 4501.0500, subpart 2; 4503.0200, subpart 6; 4503.0300, subpart 4;
166.444503.0400, subpart 1; 4503.0500, subparts 5, 8; 4503.0700, subparts 2, 3;
166.454503.1300, subpart 5; 4503.1400, subparts 2, 3, 4, 5, 6, 7, 8, 9; 4503.1450;
166.464503.1600; 4503.1700; 4503.1800; 4505.0100, subpart 3; 4505.0900, subparts 2,
166.473, 4, 5, 6, 7; 4511.0500, subpart 2; 4512.0100, subparts 2, 4, 5; 4525.0210, subpart
166.481."
1.3relating to the operation of state government; appropriating money for the
1.4legislature, governor's office, state auditor, attorney general, secretary of state,
1.5certain agencies, boards, councils, retirement funds; cancellation of certain
1.6appropriations; precluding agencies from transferring money to the governor's
1.7office for services; constraining the state auditor's use of funds for litigation
1.8expenses; requiring the state auditor to reimburse Wright, Becker, and Ramsey
1.9Counties for litigation expenses; limiting the state auditor's rates for 2017; requiring
1.10legislative approval for certain rules; making an ALJ decision the final decision
1.11in contested cases; creating an affirmative defense to certain rule violations;
1.12modifying the employee gainsharing program; requiring the Department of
1.13Administration to assess agencies for certain services; requiring the Office of
1.14MN.IT Services to report its project portfolio to the legislature; limiting severance
1.15pay for highly paid civil service employees; permitting state employees to opt out
1.16of insurance coverage under SEGIP; limiting public employer compensation under
1.17contracts to appropriated amounts; modifying uses for Support Our Troops account;
1.18requiring the Department of Veterans Affairs to develop a policy to grant free or
1.19reduced-cost burials in state veterans cemeteries to eligible indigent dependents
1.20of veterans; providing statutory appropriations to the Racing Commission in the
1.21event of a failure to pass a biennial appropriation; raising caps on Mighty Ducks
1.22grants; modifying expense calculation for the State Lottery; creating an advisory
1.23task force on fiscal notes; setting a deadline for consolidation of state information
1.24technology and for use of cloud-based solutions; creating a legislative commission
1.25to review consolidation of the state's information technology; establishing
1.26requirements for a grandfathered license for eyelash technicians; creating a working
1.27group for a rules status system; creating a grant program for election equipment;
1.28repealing the state auditor enterprise fund; repealing the campaign finance public
1.29subsidy program; repealing lottery payouts to people under 18;amending Minnesota
1.30Statutes 2016, sections 4.46; 6.481, subdivision 6; 6.56, subdivision 2; 6.581,
1.31subdivision 4; 14.18, subdivision 1; 14.27; 14.389, subdivision 3; 14.57; 16A.90;
1.3216B.055, subdivision 1; 16B.371; 16B.4805, subdivisions 2, 4; 16E.0466; 43A.17,
1.33subdivision 11; 43A.24, by adding a subdivision; 155A.23, subdivisions 10, 15,
1.3416, by adding a subdivision; 155A.29, subdivisions 1, 2; 155A.30, subdivisions
1.352, 5; 179A.20, by adding a subdivision; 190.19, subdivisions 2, 2a; 197.236,
1.36subdivision 9; 240.15, subdivision 6; 240.155, subdivision 1; 240A.09; 349A.08,
1.37subdivision 2; 349A.10, subdivision 6; Laws 2016, chapter 127, section 8;
1.38proposing coding for new law in Minnesota Statutes, chapters 6; 14; 16A; 240;
1.39repealing Minnesota Statutes 2016, sections 6.581, subdivision 1; 10A.30; 10A.31,
1.40subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b, 11; 10A.315; 10A.321;
1.4110A.322, subdivisions 1, 2, 4; 10A.323; 155A.23, subdivision 8; 349A.08,
1.42subdivision 3.
2.1May 8, 2017
2.2The Honorable Michelle L. Fischbach
2.3President of the Senate
2.4The Honorable Kurt L. Daudt
2.5Speaker of the House of Representatives
2.6We, the undersigned conferees for S.F. No. 605 report that we have agreed upon the
2.7items in dispute and recommend as follows:
2.8That the House recede from its amendments and that S.F. No. 605 be further amended
2.9as follows:
2.10Delete everything after the enacting clause and insert:
| 2.13 |
Section 1. APPROPRIATIONS. |
||||||
2.15and for the purposes specified in this article. The appropriations are from the general fund,
2.16or another named fund, and are available for the fiscal years indicated for each purpose.
2.17The figures "2018" and "2019" used in this article mean that the appropriations listed under
2.18them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
2.19"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
2.20is fiscal years 2018 and 2019.
| 2.21 |
APPROPRIATIONS |
||||||
| 2.22 |
Available for the Year |
||||||
| 2.23 |
Ending June 30 |
||||||
| 2.24 |
2018 |
2019 |
|||||
| 2.25 |
Sec. 2. LEGISLATURE |
||||||
| 2.26 |
Subdivision 1.Total Appropriation |
$ |
83,057,000 |
$ |
82,123,000 |
||
| 2.27 |
Appropriations by Fund |
||
| 2.28 |
2018 |
2019 |
|
| 2.29 |
General |
82,929,000 |
81,995,000 |
| 2.30 |
Health Care Access |
128,000 |
128,000 |
2.32purpose are specified in the following
2.33subdivisions.
| 2.34 |
Subd. 2.Senate |
32,299,000 |
32,105,000 |
||||
| 3.1 |
Subd. 3.House of Representatives |
32,383,000 |
32,383,000 |
||||
| 3.2 |
Subd. 4.Legislative Coordinating Commission |
18,375,000 |
17,635,000 |
||||
| 3.3 |
Appropriations by Fund |
||
| 3.4 |
General |
18,247,000 |
17,507,000 |
| 3.5 |
Health Care Access |
128,000 |
128,000 |
3.7may be used for designated staff to support
3.8the following offices and commissions: Office
3.9of the Legislative Auditor; Office of the
3.10Revisor of Statutes; Legislative Reference
3.11Library; Geographic Information Services;
3.12Legislative Budget Office; Legislative-Citizen
3.13Commission on Minnesota Resources;
3.14Legislative Commission on Pensions and
3.15Retirement; Legislative Energy Commission;
3.16and the Lessard-Sams Outdoor Heritage
3.17Council. The operation of all other joint
3.18offices and commissions must be supported
3.19by the central administrative staff of the
3.20Legislative Coordinating Commission. This
3.21appropriation may additionally be used for
3.22central administrative staff to support the work
3.23of the Economic Status of Women Advisory
3.24Committee.
3.25From its funds, $10,000 each year is for
3.26purposes of the legislators' forum, through
3.27which Minnesota legislators meet with
3.28counterparts from South Dakota, North
3.29Dakota, and Manitoba to discuss issues of
3.30mutual concern.
3.31Legislative Auditor. $6,744,000 the first year
3.32and $6,564,000 the second year are for the
3.33Office of the Legislative Auditor.
4.1Of these amounts, $130,000 the first year is
4.2for the transit financial activity reviews
4.3required by Minnesota Statutes, section 3.972,
4.4subdivision 4.
4.5No later than January 15, 2018, the legislative
4.6auditor must complete a review of the small
4.7business investment tax credit incentive
4.8established in Minnesota Statutes, section
4.9116J.8737. The review must follow the
4.10evaluation plan established for review of a
4.11general incentive program under Minnesota
4.12Statutes, section 3.9735, subdivision 4.
4.13No later than January 15, 2018, the legislative
4.14auditor must complete an assessment of the
4.15adequacy of the county audits performed by
4.16the state auditor in calendar year 2016. The
4.17standards for conducting the assessment must
4.18be identical to those described in the report of
4.19the state auditor dated March 2017, titled
4.20"Assessing the Adequacy of 2015 County
4.21Audits Performed by Private CPA Firms."
4.22Revisor of Statutes. $6,430,000 the first year
4.23and $6,093,000 the second year are for the
4.24Office of the Revisor of Statutes.
4.25Of these amounts, $250,000 in the first year
4.26is for upgrades and repairs to the information
4.27technology data center located in the State
4.28Office Building.
4.29Legislative Budget Office. $864,000 the first
4.30year and $818,000 the second year are for the
4.31Legislative Budget Office established in
4.32section 3.8853.
5.1Legislative Reference Library. $1,622,000
5.2the first year and $1,445,000 the second year
5.3are for the Legislative Reference Library.
5.4Of these amounts, $177,000 the first year is
5.5for the digital preservation of audio recordings
5.6documenting committee hearings and floor
5.7sessions of the legislature.
| 5.8 5.9 |
Sec. 3. GOVERNOR AND LIEUTENANT GOVERNOR |
$ |
4,403,000 |
$ |
4,403,000 |
||
5.11the Governor and Lieutenant Governor.
5.12(b) Up to $19,000 the first year and up to
5.13$19,000 the second year are for necessary
5.14expenses in the normal performance of the
5.15Governor's and Lieutenant Governor's duties
5.16for which no other reimbursement is provided.
5.17(c) The following amounts that are
5.18appropriated from the general fund in fiscal
5.19years 2018 and 2019 to the specified agency
5.20and are budgeted to be transferred to the
5.21governor for personnel costs incurred by the
5.22Offices of the Governor and the Lieutenant
5.23Governor to support the agencies are canceled
5.24to the general fund and the base for each
5.25agency is reduced by the specified amount for
5.26fiscal years 2020 and 2021.
6.9(d) Appropriations provided by this section
6.10may not be used to support the hiring of
6.11additional personnel in the Office of the
6.12Governor, to support current personnel in the
6.13office assigned to oversee federal policy or
6.14federal government relations, or to maintain
6.15office space located in the District of
6.16Columbia.
| 6.17 |
Sec. 4. STATE AUDITOR |
||||||
| 6.18 |
Subdivision 1.Total Appropriation |
$ |
9,243,000 |
$ |
9,488,000 |
||
6.20purpose are specified in the following
6.21subdivisions.
| 6.22 |
Subd. 2.Audit Practice |
7,449,000 |
7,694,000 |
||||
6.246.581, subdivision 3, or any other law to the
6.25contrary, the rates included in the state
6.26auditor's schedule of charges for examinations
6.27conducted in fiscal years 2018 and 2019 must
6.28be no greater than the rates included in the
6.29schedule of charges established for
6.30examinations conducted in calendar year 2016.
| 6.31 |
Subd. 3.Legal and Special Investigations |
272,000 |
272,000 |
||||
| 6.32 |
Subd. 4.Government Information |
511,000 |
511,000 |
||||
| 6.33 |
Subd. 5.Pension Oversight |
485,000 |
485,000 |
||||
| 6.34 |
Subd. 6.Operations Management |
305,000 |
305,000 |
||||
| 7.1 |
Subd. 7.Constitutional Office |
221,000 |
221,000 |
||||
| 7.2 |
Sec. 5. ATTORNEY GENERAL |
||||||
| 7.3 |
Subdivision 1.Total Appropriation |
$ |
23,265,000 |
$ |
23,265,000 |
||
7.12purpose are specified in the following
7.13subdivisions.
| 7.14 |
Subd. 2.Government Legal Services |
3,652,000 |
3,652,000 |
||||
| 7.15 |
Subd. 3.Regulatory Law and Professions |
5,002,000 |
5,002,000 |
||||
| 7.23 |
Subd. 4.State Government Services |
6,157,000 |
6,157,000 |
||||
| 7.24 |
Appropriations by Fund |
||
| 7.25 |
2018 |
2019 |
|
| 7.26 |
General |
6,136,000 |
6,136,000 |
| 7.27 7.28 |
State Government Special Revenue |
21,000 |
21,000 |
| 7.29 |
Subd. 5.Civil Law Section |
3,010,000 |
3,010,000 |
||||
| 7.30 |
Subd. 6.Civil Litigation |
1,495,000 |
1,495,000 |
||||
| 7.31 |
Subd. 7.Administrative Operations |
3,949,000 |
3,949,000 |
||||
| 7.32 |
Sec. 6. SECRETARY OF STATE |
||||||
| 7.33 |
Subdivision 1.Total Appropriation |
$ |
5,419,000 |
$ |
5,530,000 |
||
8.2and the base for fiscal year 2021 is
8.3$5,419,000.
8.4The amounts that may be spent for each
8.5purpose are specified in the following
8.6subdivisions.
| 8.7 |
Subd. 2.Administration |
512,000 |
525,000 |
||||
| 8.8 |
Subd. 3.Safe at Home |
659,000 |
676,000 |
||||
| 8.9 |
Subd. 4.Business Services |
1,422,000 |
1,174,000 |
||||
| 8.10 |
Subd. 5.Elections |
2,826,000 |
3,155,000 |
||||
| 8.11 8.12 |
Sec. 7. CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD |
$ |
924,000 |
$ |
924,000 |
||
| 8.13 |
Sec. 8. STATE BOARD OF INVESTMENT |
$ |
139,000 |
$ |
139,000 |
||
| 8.14 |
Sec. 9. ADMINISTRATIVE HEARINGS |
||||||
| 8.15 |
Subdivision 1.Total Appropriation |
$ |
8,170,000 |
$ |
8,170,000 |
||
| 8.16 |
Appropriations by Fund |
||
| 8.17 |
2018 |
2019 |
|
| 8.18 |
General |
383,000 |
383,000 |
| 8.19 8.20 |
Workers' Compensation |
7,787,000 |
7,787,000 |
8.22purpose are specified in the following
8.23subdivisions.
| 8.24 |
Subd. 2.Campaign Violations |
115,000 |
115,000 |
||||
8.26complaints filed under Minnesota Statutes,
8.27section 211B.32. These amounts may be used
8.28in either year of the biennium.
| 8.29 |
Subd. 3.Data Practices |
6,000 |
6,000 |
||||
8.31data practices complaints filed under
8.32Minnesota Statutes, section 13.085. These
9.1amounts may be used in either year of the
9.2biennium.
| 9.3 |
Subd. 4.Municipal Boundary Adjustments |
262,000 |
262,000 |
||||
| 9.4 |
Sec. 10. OFFICE OF MN.IT SERVICES |
||||||
| 9.5 |
Subdivision 1.Total Appropriation |
$ |
2,622,000 |
$ |
2,622,000 |
||
9.7purpose are specified in the following
9.8subdivisions.
9.9The state chief information officer must
9.10prioritize use of appropriations provided by
9.11this section to enhance cybersecurity across
9.12state government.
| 9.13 |
Subd. 2.State Chief Information Officer |
1,316,000 |
1,316,000 |
||||
9.15is authorized to provide cash flow assistance
9.16of up to $110,000,000 from the special
9.17revenue fund or other statutory general funds
9.18as defined in Minnesota Statutes, section
9.1916A.671, subdivision 3, paragraph (a), to the
9.20Office of MN.IT Services for the purpose of
9.21managing revenue and expenditure
9.22differences. These funds shall be repaid with
9.23interest by the end of the fiscal year 2019
9.24closing period.
9.25During the biennium ending June 30, 2019,
9.26the Office of MN.IT Services must not charge
9.27fees to a public noncommercial educational
9.28television broadcast station eligible for funding
9.29under Minnesota Statutes, chapter 129D, for
9.30access to the state broadcast infrastructure. If
9.31the access fees not charged to public
9.32noncommercial educational television
9.33broadcast stations total more than $400,000
10.1for the biennium, the office may charge for
10.2access fees in excess of these amounts.
| 10.3 |
Subd. 3.Geospatial Information Office |
871,000 |
871,000 |
||||
| 10.4 |
Subd. 4.Enterprise IT Security |
435,000 |
435,000 |
||||
| 10.5 |
Sec. 11. ADMINISTRATION |
||||||
| 10.6 |
Subdivision 1.Total Appropriation |
$ |
19,984,000 |
$ |
19,584,000 |
||
10.8purpose are specified in the following
10.9subdivisions.
| 10.10 |
Subd. 2.Government and Citizen Services |
7,013,000 |
7,013,000 |
||||
10.12information technology project services and
10.13support subject to the provisions of Minnesota
10.14Statutes, section 16E.0466. Any ongoing
10.15information technology costs must be
10.16incorporated into the service level agreement
10.17and must be paid to the Office of MN.IT
10.18Services by the commissioner of
10.19administration under the rates and mechanism
10.20specified in that agreement.
10.21Appropriations provided by this section may
10.22not be used to fund continuous improvement
10.23initiatives, including the Office of Continuous
10.24Improvement (LEAN).
10.25Council on Developmental Disabilities.
10.26$74,000 the first year and $74,000 the second
10.27year are for the Council on Developmental
10.28Disabilities.
10.29Olmstead Plan. $148,000 each year is for the
10.30Olmstead plan.
10.31Materials Management. $2,139,000 each
10.32year is for materials management.
11.1Plant Management. $390,000 each year is
11.2for plant management.
11.3$7,500,000 the first year of the balance in the
11.4facility repair and replacement account in the
11.5special revenue fund is canceled to the general
11.6fund. These amounts are in addition to
11.7amounts transferred under Minnesota Statutes,
11.8section 16B.24, subdivision 5, paragraph (d).
11.9Real Estate and Construction Services.
11.10$2,198,000 each year is for real estate and
11.11construction services.
11.12Enterprise Real Property. $601,000 each
11.13year is for enterprise real property.
11.14State Agency Accommodation
11.15Reimbursement. $200,000 the first year and
11.16$200,000 the second year are credited to the
11.17accommodation account established in
11.18Minnesota Statutes, section 16B.4805.
11.19Community Services. $1,263,000 each year
11.20is for community services.
11.21(a) $192,000 the first year and $192,000 the
11.22second year are for the state archaeologist.
11.23(b) $468,000 the first year and $468,000 the
11.24second year are for information policy
11.25analysis.
11.26(c) $487,000 the first year and $487,000 the
11.27second year are for the state demographer.
11.28(d) $116,000 the first year and $116,000 the
11.29second year are for the Office of Grants
11.30Management.
| 11.31 |
Subd. 3.Strategic Management Services |
1,794,000 |
1,794,000 |
||||
12.2$528,000 each year is for executive
12.3leadership/partnerships.
12.4School Trust Lands Director. $185,000 each
12.5year is for school trust lands director.
12.6Financial Management and Reporting.
12.7$706,000 each year is for financial
12.8management and reporting.
12.9Human Resources. $375,000 each year is for
12.10human resources.
| 12.11 |
Subd. 4.Fiscal Agent |
11,177,000 |
10,777,000 |
||||
12.13$8,158,000 the second year are for space costs
12.14of the legislature and veterans organizations,
12.15ceremonial space, and statutorily free space.
12.16Public Television. (a) $1,550,000 the first
12.17year and $1,550,000 the second year are for
12.18matching grants for public television.
12.19(b) $250,000 the first year and $250,000 the
12.20second year are for public television
12.21equipment grants under Minnesota Statutes,
12.22section 129D.13.
12.23(c) The commissioner of administration must
12.24consider the recommendations of the
12.25Minnesota Public Television Association
12.26before allocating the amounts appropriated in
12.27paragraphs (a) and (b) for equipment or
12.28matching grants.
12.29Public Radio. (a) $392,000 the first year and
12.30$392,000 the second year are for community
12.31service grants to public educational radio
12.32stations. This appropriation may be used to
13.1disseminate emergency information in foreign
13.2languages.
13.3(b) $117,000 the first year and $117,000 the
13.4second year are for equipment grants to public
13.5educational radio stations. This appropriation
13.6may be used for the repair, rental, and
13.7purchase of equipment including equipment
13.8under $500.
13.9(c) $310,000 the first year and $310,000 the
13.10second year are for equipment grants to
13.11Minnesota Public Radio, Inc., including
13.12upgrades to Minnesota's Emergency Alert and
13.13AMBER Alert Systems.
13.14(d) $400,000 the first year is for a grant to
13.15Minnesota Public Radio, Inc. for upgrades to
13.16Minnesota's Emergency Alert and AMBER
13.17Alert Systems.
13.18(e) The appropriations in paragraphs (a) to (d)
13.19may not be used for indirect costs claimed by
13.20an institution or governing body.
13.21(f) The commissioner of administration must
13.22consider the recommendations of the
13.23Association of Minnesota Public Educational
13.24Radio Stations before awarding grants under
13.25Minnesota Statutes, section 129D.14, using
13.26the appropriations in paragraphs (a) and (b).
13.27No grantee is eligible for a grant unless they
13.28are a member of the Association of Minnesota
13.29Public Educational Radio Stations on or before
13.30July 1, 2017.
13.31(g) Any unencumbered balance remaining the
13.32first year for grants to public television or
13.33public radio stations does not cancel and is
13.34available for the second year.
| 14.1 14.2 |
Sec. 12. CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD |
$ |
345,000 |
$ |
345,000 |
||
| 14.3 14.4 |
Sec. 13. MINNESOTA MANAGEMENT AND BUDGET |
$ |
17,920,000 |
$ |
18,320,000 |
||
| 14.5 |
Subdivision 1.Appropriations |
||||||
14.7purpose are specified in the following
14.8subdivisions.
14.9This appropriation includes funds for
14.10information technology project services and
14.11support subject to the provisions of Minnesota
14.12Statutes, section 16E.0466. Any ongoing
14.13information technology costs must be
14.14incorporated into the service level agreement
14.15and must be paid to the Office of MN.IT
14.16Services by the commissioner of management
14.17and budget under the rates and mechanism
14.18specified in that agreement.
| 14.19 |
Subd. 2.Accounting Services |
3,758,000 |
3,958,000 |
||||
| 14.20 |
Subd. 3.Budget Services |
2,416,000 |
2,616,000 |
||||
| 14.21 |
Subd. 4.Economic Analysis |
424,000 |
424,000 |
||||
| 14.22 |
Subd. 5.Debt Management |
367,000 |
367,000 |
||||
| 14.23 14.24 |
Subd. 6.Enterprise Communications and Planning |
830,000 |
830,000 |
||||
| 14.25 |
Subd. 7.Enterprise Human Resources |
2,681,000 |
2,681,000 |
||||
14.27transferred to the commissioner from another
14.28agency may not be used to support a statewide
14.29executive recruiting program.
| 14.30 |
Subd. 8.Labor Relations |
868,000 |
868,000 |
||||
| 14.31 |
Subd. 9.Agency Administration |
6,576,000 |
6,576,000 |
||||
14.33must credit at least $1,000,000 to the general
15.1fund based on savings realized through
15.2implementation of the employee gainsharing
15.3program required by Minnesota Statutes,
15.4section 16A.90. If a credit of at least this
15.5amount has not been made to the general fund
15.6as of that date, the appropriation provided in
15.7this subdivision for fiscal year 2019 is reduced
15.8in an amount equal to the difference between
15.9the amount actually credited to the general
15.10fund and the total credit required by this
15.11paragraph.
| 15.12 |
Sec. 14. REVENUE |
||||||
| 15.13 |
Subdivision 1.Total Appropriation |
$ |
141,485,000 |
$ |
141,310,000 |
||
15.22by this section, the amounts allocated for tax
15.23compliance activities of the department must
15.24be no less than the amounts allocated for those
15.25activities during fiscal year 2017, and the
15.26commissioner must prioritize processing
15.27personal income tax returns, taxpayer fraud
15.28prevention, and assuring that taxpayer refunds
15.29are not delayed when determining spending
15.30plans for each of the activities in this section.
15.31This appropriation includes funds for
15.32information technology project services and
15.33support subject to the provisions of Minnesota
15.34Statutes, section 16E.0466. Any ongoing
15.35information technology costs must be
16.1incorporated into the service level agreement
16.2and must be paid to the Office of MN.IT
16.3Services by the commissioner of revenue
16.4under the rates and mechanism specified in
16.5that agreement.
| 16.6 |
Subd. 2.Tax System Management |
114,128,000 |
113,953,000 |
||||
| 16.14 |
(a) Operations Support |
||||||
| 16.15 |
General |
9,356,000 |
9,356,000 |
||||
| 16.16 |
Health Care Access |
126,000 |
126,000 |
||||
| 16.17 |
(b) Appeals, Legal Services, and Tax Research |
||||||
| 16.18 |
General |
6,932,000 |
6,932,000 |
||||
| 16.19 |
Health Care Access |
113,000 |
113,000 |
||||
| 16.20 |
(c) Payment and Return Processing |
||||||
| 16.21 |
General |
12,927,000 |
12,927,000 |
||||
| 16.22 |
Health Care Access |
51,000 |
51,000 |
||||
| 16.23 16.24 |
Highway User Tax Distribution |
343,000 |
343,000 |
||||
16.32year is for preparing and submitting a
16.33supplemental 2017 tax incidence report
16.34meeting the requirements of Minnesota
16.35Statutes, section 270C.13, subdivision 1, as
16.36amended by this act. The supplemental report
17.1must be completed and submitted no later than
17.2January 2, 2018.
17.3(2) $160,000 from the general fund in the first
17.4year is for administration of a first-time home
17.5buyer savings account program. This
17.6appropriation is canceled to the general fund
17.7if income tax provisions related to first-time
17.8home buyer savings accounts are not enacted
17.9by law at the 2017 regular or special
17.10legislative session.
| 17.17 |
(f) Property Tax Administration and State Aid |
||||||
| 17.18 |
General |
3,992,000 |
3,992,000 |
||||
| 17.19 |
Subd. 3.Debt Collection Management |
27,357,000 |
27,357,000 |
||||
| 17.20 |
Sec. 15. HUMAN RIGHTS |
$ |
3,954,000 |
$ |
3,954,000 |
||
| 17.21 |
Sec. 16. GAMBLING CONTROL |
$ |
3,422,000 |
$ |
3,457,000 |
||
17.23gambling regulation account in the special
17.24revenue fund.
| 17.25 |
Sec. 17. RACING COMMISSION |
$ |
845,000 |
$ |
908,000 |
||
17.27card playing regulation accounts in the special
17.28revenue fund.
| 17.29 |
Sec. 18. STATE LOTTERY |
||||||
17.32operating budget must not exceed $32,500,000
18.1in fiscal year 2018 and $33,000,000 in fiscal
18.2year 2019.
| 18.3 |
Sec. 19. AMATEUR SPORTS COMMISSION |
$ |
300,000 |
$ |
300,000 |
||
| 18.4 18.5 |
Sec. 20. COUNCIL ON MINNESOTANS OF AFRICAN HERITAGE |
$ |
401,000 |
$ |
401,000 |
||
| 18.6 |
Sec. 21. COUNCIL ON LATINO AFFAIRS |
$ |
386,000 |
$ |
386,000 |
||
| 18.7 18.8 |
Sec. 22. COUNCIL ON ASIAN-PACIFIC MINNESOTANS |
$ |
364,000 |
$ |
364,000 |
||
| 18.9 |
Sec. 23. INDIAN AFFAIRS COUNCIL |
$ |
576,000 |
$ |
576,000 |
||
| 18.10 18.11 |
Sec. 24. MINNESOTA HISTORICAL SOCIETY |
||||||
| 18.12 |
Subdivision 1.Total Appropriation |
$ |
22,893,000 |
$ |
22,893,000 |
||
18.14purpose are specified in the following
18.15subdivisions.
| 18.16 |
Subd. 2.Operations and Programs |
22,572,000 |
22,572,000 |
||||
18.18second year are for digital preservation and
18.19access, including planning and implementation
18.20of a program to preserve and make available
18.21resources related to Minnesota history. These
18.22are onetime appropriations.
| 18.23 |
Subd. 3.Fiscal Agent |
||||||
| 18.24 |
(a) Global Minnesota |
39,000 |
39,000 |
||||
| 18.25 |
(b) Minnesota Air National Guard Museum |
17,000 |
17,000 |
||||
| 18.26 |
(c) Minnesota Military Museum |
50,000 |
50,000 |
||||
| 18.27 |
(d) Farmamerica |
115,000 |
115,000 |
||||
| 18.28 |
(e) Hockey Hall of Fame |
100,000 |
100,000 |
||||
18.30subdivision the first year does not cancel but
19.1is available for the second year of the
19.2biennium.
| 19.3 |
Sec. 25. BOARD OF THE ARTS |
||||||
| 19.4 |
Subdivision 1.Total Appropriation |
$ |
7,530,000 |
$ |
7,530,000 |
||
19.6purpose are specified in the following
19.7subdivisions.
| 19.8 |
Subd. 2.Operations and Services |
591,000 |
591,000 |
||||
| 19.9 |
Subd. 3.Grants Program |
4,800,000 |
4,800,000 |
||||
| 19.10 |
Subd. 4.Regional Arts Councils |
2,139,000 |
2,139,000 |
||||
19.12section the first year does not cancel, but is
19.13available for the second year.
19.14Money appropriated in this section and
19.15distributed as grants may only be spent on
19.16projects located in Minnesota. A recipient of
19.17a grant funded by an appropriation in this
19.18section must not use more than five percent
19.19of the total grant for costs related to travel
19.20outside the state of Minnesota.
| 19.21 |
Sec. 26. MINNESOTA HUMANITIES CENTER |
$ |
950,000 |
$ |
950,000 |
||
19.23Eating, Here at Home program under
19.24Minnesota Statutes, section 138.912. No more
19.25than three percent of the appropriation may
19.26be used for the nonprofit administration of this
19.27program.
19.28(b) $250,000 each year is for grants to the
19.29Veterans Defense Project. Grants must be used
19.30to support, through education and outreach,
19.31military veterans who are involved with the
20.1criminal justice system. These are onetime
20.2appropriations.
| 20.3 |
Sec. 27. BOARD OF ACCOUNTANCY |
$ |
641,000 |
$ |
641,000 |
||
| 20.4 20.5 20.6 20.7 |
Sec. 28. BOARD OF ARCHITECTURE ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN |
$ |
794,000 |
$ |
794,000 |
||
| 20.8 20.9 |
Sec. 29. BOARD OF COSMETOLOGIST EXAMINERS |
$ |
1,346,000 |
$ |
1,346,000 |
||
20.11to the chairs and ranking minority members
20.12of the committees in the house of
20.13representatives and senate with jurisdiction
20.14over state government finance on the number
20.15of inspections conducted by license type in
20.16the past quarter, number and percent of total
20.17salons and schools inspected within the last
20.18year, total number of licensees by type, and
20.19the number of inspectors employed by the
20.20board. The first report must be submitted by
20.21July 15, 2017.
| 20.22 |
Sec. 30. BOARD OF BARBER EXAMINERS |
$ |
325,000 |
$ |
325,000 |
||
| 20.23 20.24 |
Sec. 31. GENERAL CONTINGENT ACCOUNTS |
$ |
750,000 |
$ |
500,000 |
||
| 20.25 |
Appropriations by Fund |
||
| 20.26 |
2018 |
2019 |
|
| 20.27 |
General |
250,000 |
-0- |
| 20.28 20.29 |
State Government Special Revenue |
400,000 |
400,000 |
| 20.30 20.31 |
Workers' Compensation |
100,000 |
100,000 |
20.33be spent with the approval of the governor
20.34after consultation with the Legislative
21.1Advisory Commission pursuant to Minnesota
21.2Statutes, section 3.30.
21.3(b) If an appropriation in this section for either
21.4year is insufficient, the appropriation for the
21.5other year is available for it.
21.6(c) If a contingent account appropriation is
21.7made in one fiscal year, it should be
21.8considered a biennial appropriation.
| 21.9 |
Sec. 32. TORT CLAIMS |
$ |
161,000 |
$ |
161,000 |
||
21.11commissioner of management and budget
21.12according to Minnesota Statutes, section
21.133.736, subdivision 7. If the appropriation for
21.14either year is insufficient, the appropriation
21.15for the other year is available for it.
| 21.16 21.17 |
Sec. 33. MINNESOTA STATE RETIREMENT SYSTEM |
||||||
| 21.18 |
Subdivision 1.Total Appropriation |
$ |
14,893,000 |
$ |
15,071,000 |
||
21.20purpose are specified in the following
21.21subdivisions.
| 21.22 21.23 |
Subd. 2.Combined Legislators and Constitutional Officers Retirement Plan |
8,893,000 |
9,071,000 |
||||
21.25subdivision 2; 3A.04, subdivisions 3 and 4;
21.26and 3A.115.
21.27If an appropriation in this section for either
21.28year is insufficient, the appropriation for the
21.29other year is available for it.
| 21.30 |
Subd. 3.Judges Retirement Plan |
6,000,000 |
6,000,000 |
||||
21.32under Minnesota Statutes, section 490.123.
22.1$6,000,000 each fiscal year is included in the
22.2base for fiscal years 2020 and 2021. This
22.3transfer continues each fiscal year until the
22.4judges retirement plan reaches 100 percent
22.5funding as determined by an actuarial
22.6valuation prepared according to Minnesota
22.7Statutes, section 356.214.
| 22.8 22.9 |
Sec. 34. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION |
$ |
6,000,000 |
$ |
6,000,000 |
||
22.11Public Employees Retirement Association
22.12relating to the merged former MERF division.
22.13State payments from the general fund to the
22.14Public Employees Retirement Association on
22.15behalf of the former MERF division account
22.16are $6,000,000 on September 15, 2017, and
22.17$6,000,000 on September 15, 2018.
22.18These amounts are estimated to be needed
22.19under Minnesota Statutes, section 353.505.
| 22.20 22.21 |
Sec. 35. TEACHERS RETIREMENT ASSOCIATION |
$ |
29,831,000 |
$ |
29,831,000 |
||
22.23follows:
22.24Special Direct State Aid. $27,331,000 the
22.25first year and $27,331,000 the second year are
22.26for special direct state aid authorized under
22.27Minnesota Statutes, section 354.436.
22.28Special Direct State Matching Aid.
22.29$2,500,000 the first year and $2,500,000 the
22.30second year are for special direct state
22.31matching aid authorized under Minnesota
22.32Statutes, section 354.435.
| 23.1 23.2 |
Sec. 36. ST. PAUL TEACHERS RETIREMENT FUND |
$ |
9,827,000 |
$ |
9,827,000 |
||
23.4special direct state aid to the first class city
23.5teachers retirement fund association authorized
23.6under Minnesota Statutes, section
23.7subdivisions 3a and 3c.
| 23.8 |
Sec. 37. MILITARY AFFAIRS |
||||||
| 23.9 |
Subdivision 1.Total Appropriation |
$ |
25,616,000 |
$ |
19,616,000 |
||
23.11purpose are specified in the following
23.12subdivisions.
| 23.13 |
Subd. 2.Maintenance of Training Facilities |
9,661,000 |
9,661,000 |
||||
23.15training facilities in Laws 2015, chapter 77,
23.16article 1, section 36, subdivision 4, $2,000,000
23.17in fiscal year 2017 may be transferred to the
23.18enlistment incentives appropriation to address
23.19a projected fiscal year 2017 deficit in the
23.20enlistment incentives program.
| 23.21 |
Subd. 3.General Support |
3,067,000 |
3,067,000 |
||||
| 23.22 |
Subd. 4.Enlistment Incentives |
12,888,000 |
6,888,000 |
||||
23.24available until expended, except that any
23.25unspent amounts allocated to a program
23.26otherwise supported by this appropriation are
23.27canceled to the general fund upon receipt of
23.28federal funds in the same amount to support
23.29administration of that program.
23.30If appropriations for either year of the
23.31biennium are insufficient, the appropriation
23.32from the other year is available. The
24.1appropriations for enlistment incentives are
24.2available until June 30, 2021.
| 24.3 |
Sec. 38. VETERANS AFFAIRS |
||||||
| 24.4 |
Subdivision 1.Total Appropriation |
$ |
84,029,000 |
$ |
74,029,000 |
||
24.6purpose are specified in the following
24.7subdivisions.
| 24.8 |
Subd. 2.Veterans Programs and Services |
16,811,000 |
16,811,000 |
||||
24.10each year is for grants to the following
24.11congressionally chartered veterans service
24.12organizations as designated by the
24.13commissioner: Disabled American Veterans,
24.14Military Order of the Purple Heart, the
24.15American Legion, Veterans of Foreign Wars,
24.16Vietnam Veterans of America, AMVETS, and
24.17Paralyzed Veterans of America. This funding
24.18must be allocated in direct proportion to the
24.19funding currently being provided by the
24.20commissioner to these organizations.
24.21Minnesota Assistance Council for Veterans.
24.22$750,000 each year is for a grant to the
24.23Minnesota Assistance Council for Veterans
24.24to provide assistance throughout Minnesota
24.25to veterans and their families who are
24.26homeless or in danger of homelessness,
24.27including assistance with the following:
24.28(1) utilities;
24.29(2) employment; and
24.30(3) legal issues.
24.31The assistance authorized under this paragraph
24.32must be made only to veterans who have
24.33resided in Minnesota for 30 days prior to
25.1application for assistance and according to
25.2other guidelines established by the
25.3commissioner. In order to avoid duplication
25.4of services, the commissioner must ensure that
25.5this assistance is coordinated with all other
25.6available programs for veterans.
25.7Honor Guards. $200,000 each year is for
25.8compensation for honor guards at the funerals
25.9of veterans under Minnesota Statutes, section
25.10197.231.
25.11Minnesota GI Bill. $200,000 each year is for
25.12the costs of administering the Minnesota GI
25.13Bill postsecondary educational benefits,
25.14on-the-job training, and apprenticeship
25.15program under Minnesota Statutes, section
25.16197.791.
25.17Gold Star Program. $100,000 each year is
25.18for administering the Gold Star Program for
25.19surviving family members of deceased
25.20veterans.
25.21County Veterans Service Office. $1,100,000
25.22each year is for funding the County Veterans
25.23Service Office grant program under Minnesota
25.24Statutes, section 197.608.
25.25Veterans Journey Home. $350,000 each year
25.26is for grants to the veterans Journey Home
25.27program. Grants must support the development
25.28of new or rehabilitated affordable housing
25.29dedicated for low-to-moderate income
25.30veterans and their families. These are onetime
25.31appropriations.
| 25.32 |
Subd. 3.Veterans Health Care |
67,218,000 |
57,218,000 |
||||
25.34department may be transferred to a veterans
26.1homes special revenue account in the special
26.2revenue fund in the same manner as other
26.3receipts are deposited according to Minnesota
26.4Statutes, section 198.34, and are appropriated
26.5to the department for the operation of veterans
26.6homes facilities and programs.
26.7No later than January 15, 2018, the
26.8commissioner must submit a report to the
26.9legislative committees with jurisdiction over
26.10veterans affairs and state government finance
26.11on reserve amounts maintained in the veterans
26.12homes special revenue account. The report
26.13must detail current and historical amounts
26.14maintained as a reserve, and uses of those
26.15amounts. The report must also include data on
26.16the utilization of existing veterans homes,
26.17including current and historical bed capacity
26.18and usage, staffing levels and staff vacancy
26.19rates, and staff-to-resident ratios.
26.20New Veterans Homes. $10,000,000 in the
26.21first year is for planning, design, construction,
26.22and operation of new veterans homes, and any
26.23other requirements necessary for federal
26.24approval of those homes. The commissioner
26.25must select locations for construction of new
26.26homes based on geographic need, consistent
26.27with any guidance or requirements provided
26.28by federal law. This is a onetime appropriation
26.29and is available until spent.
26.30Maximize Federal Reimbursements. The
26.31department will seek opportunities to
26.32maximize federal reimbursements of
26.33Medicare-eligible expenses and will provide
26.34annual reports to the commissioner of
26.35management and budget on the federal
27.1Medicare reimbursements received.
27.2Contingent upon future federal Medicare
27.3receipts, reductions to the homes' general fund
27.4appropriation may be made.
27.5 Sec. 39. PRESERVATION OF PROGRAMS AND SERVICES.
27.6To the extent that appropriations provided by this article are less than the amounts
27.7appropriated for fiscal year 2017, the affected constitutional office, agency, board, or
27.8commission must prioritize reductions to its central administration and general operations
27.9in absorbing those reductions. Costs for programs or services that are not provided a specific
27.10appropriation in this act must be funded through appropriations to the constitutional office,
27.11agency, board, or commission that are not designated for another purpose. Unless otherwise
27.12specified, reductions must not be made to programs or services of the constitutional office,
27.13agency, board, or commission that are provided directly to members of the public.
27.14 Sec. 40. APPROPRIATION CANCELLATIONS.
27.15All unspent funds estimated to be $7,166,000, as provided in Minnesota Statutes, section
27.16240A.085, under Laws 2016, chapter 189, article 13, section 56, are canceled to the general
27.17fund on June 30, 2017.
27.18 Sec. 41. SAVINGS FROM INSURANCE OPT OUT; APPROPRIATION
27.19REDUCTION FOR EXECUTIVE AGENCIES.
27.20The commissioner of management and budget must reduce general fund appropriations
27.21to executive agencies, including constitutional offices, for agency operations for the biennium
27.22ending June 30, 2019, by $4,394,000 due to savings from permitting employees to opt out
27.23of insurance coverage under the state employee group insurance coverage.
27.24If savings obtained through permitting employees to opt out of insurance coverage under
27.25the state employee group insurance coverage yield savings in nongeneral funds other than
27.26those established in the state constitution or protected by federal law, the commissioner of
27.27management and budget may transfer the amount of savings to the general fund. The amount
27.28transferred to the general fund from other funds reduces the required general fund reduction
27.29in this section. Reductions made in 2019 must be reflected as reductions in agency base
27.30budgets for fiscal years 2020 and 2021. The commissioner of management and budget must
27.31report to the chairs and ranking minority members of the committees in the senate Finance
28.1Committee and the house of representatives Ways and Means Committee regarding the
28.2amount of reductions in spending by each agency under this section.
28.3 Sec. 42. SAVINGS; APPROPRIATION REDUCTIONS FOR INFORMATION
28.4TECHNOLOGY CONSOLIDATION.
28.5(a) The commissioner of management and budget must reduce general fund appropriations
28.6to agencies subject to the executive branch information technology consolidation required
28.7by Laws 2011, First Special Session chapter 10, article 4, by at least $3,000,000 for the
28.8biennium ending June 30, 2019, to reflect savings on enterprise services personnel costs
28.9resulting from the consolidation.
28.10(b) If savings obtained through the completion of information technology consolidation
28.11yield savings in nongeneral funds other than those established in the state constitution or
28.12protected by federal law, the commissioner may transfer the amount of savings to the general
28.13fund. The amount transferred to the general fund from other funds reduces the required
28.14general fund reduction in this section. Reductions made in 2019 must be reflected as
28.15reductions in agency base budgets for fiscal years 2020 and 2021.
28.16 Sec. 43. REDUCTION IN PROFESSIONAL AND TECHNICAL SERVICES
28.17CONTRACT EXPENDITURES.
28.18During the biennium ending June 30, 2019, the commissioner of management and budget
28.19must reduce planned general fund expenditures by executive branch state agencies on
28.20contracts for professional or technical services by at least $2,255,000. The commissioner
28.21must allocate this reduction among each executive branch state agency. For purposes of
28.22this section, "professional or technical services" has the meaning given in Minnesota Statutes,
28.23section 16C.08, subdivision 1, and "executive branch state agency" has the meaning given
28.24in Minnesota Statutes, section 16A.011, subdivision 12a, and includes the Minnesota State
28.25Colleges and Universities.
28.26 Sec. 44. BASE BUDGET REPORT.
28.27No later than October 15, 2017, the commissioners of management and budget, revenue,
28.28and veterans affairs must each submit a report to the chairs and ranking minority members
28.29of the legislative committees with jurisdiction over state government finance that detail the
28.30agency's base budget, by fiscal year. At a minimum, the report must include:
28.31(1) a description of each appropriation rider enacted for the agency, and the year the
28.32rider was first enacted in a substantially similar form;
29.1(2) a description of the agency's use of appropriated funds that are not directed by a
29.2rider, including an itemization of programs that appeared in a rider in a prior biennium and
29.3continue to receive funding despite no longer appearing in a rider; and
29.4(3) an itemization of any appropriations provided to the agency under a provision of
29.5statute or the state constitution.
29.8 Section 1. [2.92] DISTRICTING PRINCIPLES.
29.9 Subdivision 1. Applicability. The principles in this section apply to legislative and
29.10congressional districts.
29.11 Subd. 2. Nesting. A representative district may not be divided in the formation of a
29.12senate district.
29.13 Subd. 3. Equal population. (a) Legislative districts must be substantially equal in
29.14population. The population of a legislative district must not deviate from the ideal by more
29.15than 0.5 percent, plus or minus.
29.16(b) Congressional districts must be as nearly equal in population as practicable.
29.17 Subd. 4. Contiguity; compactness. The districts must be composed of convenient
29.18contiguous territory. To the extent consistent with the other principles in this section, districts
29.19should be compact. Contiguity by water is sufficient if the water is not a serious obstacle
29.20to travel within the district. Point contiguity is not sufficient.
29.21 Subd. 5. Numbering. (a) Legislative districts must be numbered in a regular series,
29.22beginning with house district 1A in the northwest corner of the state and proceeding across
29.23the state from west to east, north to south, but bypassing the 11-county metropolitan area
29.24until the southeast corner has been reached; then to the 11-county metropolitan area. In a
29.25county that includes more than one whole senate district, the districts must be numbered
29.26consecutively.
29.27(b) Congressional district numbers must begin with district one in the southeast corner
29.28of the state and end with district eight in the northeast corner of the state.
29.29 Subd. 6. Minority representation. (a) The dilution of racial or ethnic minority voting
29.30strength is contrary to the laws of the United States and the state of Minnesota. These
29.31principles must not be construed to supersede any provision of the Voting Rights Act of
29.321965, as amended.
30.1(b) A redistricting plan must not have the intent or effect of dispersing or concentrating
30.2minority population in a manner that prevents minority communities from electing their
30.3candidates of choice.
30.4 Subd. 7. Minor civil divisions. (a) A county, city, or town must not be unduly divided
30.5unless required to meet equal population requirements or to form districts composed of
30.6convenient, contiguous territory.
30.7(b) A county, city, or town is not unduly divided in the formation of a legislative or
30.8congressional district if:
30.9(1) the division occurs because a portion of a city or town is noncontiguous with another
30.10portion of the same city or town; or
30.11(2) despite the division, the known population of any affected county, city, or town
30.12remains wholly located within a single district.
30.13 Subd. 8. Preserving communities of interest. (a) Districts should attempt to preserve
30.14identifiable communities of interest where that can be done in compliance with the principles
30.15under this section.
30.16(b) For purposes of this subdivision, "communities of interest" means recognizable areas
30.17with similarities of interests including but not limited to racial, ethnic, geographic, social,
30.18or cultural interests.
30.19 Subd. 9. Incumbents. The districts must not be drawn for the purpose of protecting or
30.20defeating an incumbent.
30.21 Subd. 10. Data to be used. (a) The geographic areas and population counts used in
30.22maps, tables, and legal descriptions of the districts must be those used by the Geographic
30.23Information Systems Office of the Legislative Coordinating Commission. The population
30.24counts shall be the block population counts provided to the state under Public Law 94-171
30.25after each decennial census, subject to correction of any errors acknowledged by the United
30.26States Census Bureau.
30.27(b) Nothing in this subdivision prohibits the use of additional data, as determined by the
30.28legislature.
30.29 Subd. 11. Consideration of plans. A redistricting plan must not be considered for
30.30adoption by the senate or house of representatives until a block equivalency file showing
30.31the district to which each census block has been assigned, in a form prescribed by the director
30.32of the Geographic Information Systems Office, has been filed with the director.
31.1 Subd. 12. Priority of principles. Where it is not possible to fully comply with the
31.2principles contained in subdivisions 2 to 9, a redistricting plan must give priority to those
31.3principles in the order in which they are listed, except to the extent that doing so would
31.4violate federal or state law.
31.5EFFECTIVE DATE. This section is effective the day following final enactment and
31.6applies to any plan for districts enacted or established for use on or after that date.
31.7 Sec. 2. Minnesota Statutes 2016, section 3.305, subdivision 1, is amended to read:
31.8 Subdivision 1. Definitions. (a) "Legislative commission" means a joint commission,
31.9committee, or other entity in the legislative branch composed exclusively of members of
31.10the senate and the house of representatives.
31.11(b) "Joint offices" means the Revisor of Statutes, Legislative Reference Library, the
31.12Office of Legislative Auditor, the Legislative Budget Office, and any other joint legislative
31.13service office.
31.14 Sec. 3. Minnesota Statutes 2016, section 3.855, subdivision 2, is amended to read:
31.15 Subd. 2. State employee negotiations. (a) The commissioner of management and budget
31.16shall regularly advise the commission on the progress of collective bargaining activities
31.17with state employees under the state Public Employment Labor Relations Act. During
31.18negotiations, the commission may make recommendations to the commissioner as it deems
31.19appropriate but no recommendation shall impose any obligation or grant any right or privilege
31.20to the parties.
31.21(b) The commissioner shall submit to the chair of the commission any negotiated
31.22collective bargaining agreements, arbitration awards, compensation plans, or salaries for
31.23legislative approval or disapproval. Negotiated agreements shall be submitted within five
31.24days of the date of approval by the commissioner or the date of approval by the affected
31.25state employees, whichever occurs later. Arbitration awards shall be submitted within five
31.26days of their receipt by the commissioner. If the commission disapproves a collective
31.27bargaining agreement, award, compensation plan, or salary, the commission shall specify
31.28in writing to the parties those portions with which it disagrees and its reasons. If the
31.29commission approves a collective bargaining agreement, award, compensation plan, or
31.30salary, it shall submit the matter to the legislature to be accepted or rejected under this
31.31section.
32.1(c) When the legislature is not in session, the commission may give interim approval to
32.2a negotiated collective bargaining agreement, salary, compensation plan, or arbitration
32.3award.
32.4
32.5The commission shall submit the negotiated collective bargaining agreements, salaries,
32.6compensation plans, or arbitration awards for which it has provided approval to the entire
32.7legislature for ratification at a special legislative session called to consider them or at its
32.8next regular legislative session as provided in this section. Approval or disapproval by the
32.9commission is not binding on the legislature.
32.10(d) When the legislature is not in session, the proposed collective bargaining agreement,
32.11arbitration decision, salary, or compensation plan must be implemented upon its approval
32.12by the commission, and state employees covered by the proposed agreement or arbitration
32.13decision do not have the right to strike while the interim approval is in effect. Wages and
32.14economic fringe benefit increases provided for in the agreement or arbitration decision paid
32.15in accordance with the interim approval by the commission are not affected, but the wages
32.16or benefit increases must cease to be paid or provided effective upon the rejection of the
32.17agreement, arbitration decision, salary, or compensation plan, or upon adjournment of the
32.18legislature without acting on it.
32.19EFFECTIVE DATE.This section is effective the day following final enactment.
32.20 Sec. 4. Minnesota Statutes 2016, section 3.8843, subdivision 7, is amended to read:
32.21 Subd. 7. Expiration. This section expires June 30,
32.22EFFECTIVE DATE.This section is effective the day following final enactment.
32.23 Sec. 5. [3.8853] LEGISLATIVE BUDGET OFFICE.
32.24The Legislative Budget Office is established under control of the Legislative Coordinating
32.25Commission to provide the house of representatives and the senate with nonpartisan, accurate,
32.26and timely information on the fiscal impact of proposed legislation, without regard to political
32.27factors. The Legislative Coordinating Commission shall appoint a director who may hire
32.28staff necessary to do the work of the office. The director serves a term of six years and may
32.29not be removed during a term except for cause after a public hearing.
33.1 Sec. 6. Minnesota Statutes 2016, section 3.971, subdivision 2, is amended to read:
33.2 Subd. 2. Staff; compensation. (a) The legislative auditor shall establish a Financial
33.3Audits Division and a Program Evaluation Division to fulfill the duties prescribed in this
33.4section.
33.5 (b) Each division may be supervised by a deputy auditor, appointed by the legislative
33.6auditor, with the approval of the commission, for a term coterminous with the legislative
33.7auditor's term. The deputy auditors may be removed before the expiration of their terms
33.8only for cause. The legislative auditor and deputy auditors may each appoint a confidential
33.9secretary to serve at pleasure. The salaries and benefits of the legislative auditor, deputy
33.10auditors and confidential secretaries shall be determined by the compensation plan approved
33.11by the Legislative Coordinating Commission. The deputy auditors may perform and exercise
33.12the powers, duties and responsibilities imposed by law on the legislative auditor when
33.13authorized by the legislative auditor.
33.14(c) The legislative auditor must appoint a fiscal oversight officer with duties that include
33.15performing the review under section 3.972, subdivision 4.
33.16 (d) The deputy auditors and the confidential secretaries serve in the unclassified civil
33.17service, but the fiscal oversight officer and all other employees of the legislative auditor are
33.18in the classified civil service. Compensation for employees of the legislative auditor in the
33.19classified service shall be governed by a plan prepared by the legislative auditor and approved
33.20by the Legislative Coordinating Commission and the legislature under section
33.21subdivision 3
33.22 (e) While in office, a person appointed deputy for the Financial Audit Division must
33.23hold an active license as a certified public accountant.
33.24EFFECTIVE DATE.This section is effective the day following final enactment.
33.25 Sec. 7. Minnesota Statutes 2016, section 3.971, subdivision 6, is amended to read:
33.26 Subd. 6. Financial audits. The legislative auditor shall audit the financial statements
33.27of the state of Minnesota required by section
33.28State Colleges and Universities, the University of Minnesota, state agencies, departments,
33.29boards, commissions, offices, courts, and other organizations subject to audit by the
33.30legislative auditor, including, but not limited to, the State Agricultural Society, Agricultural
33.31Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical Society,
33.32ClearWay Minnesota, Minnesota Sports Facilities Authority, Metropolitan Council,
33.33Metropolitan Airports Commission, and Metropolitan Mosquito Control District. Financial
34.1audits must be conducted according to generally accepted government auditing standards.
34.2The legislative auditor shall see that all provisions of law respecting the appropriate and
34.3economic use of public funds and other public resources are complied with and may, as
34.4part of a financial audit or separately, investigate allegations of noncompliance.
34.5EFFECTIVE DATE.This section is effective the day following final enactment.
34.6 Sec. 8. Minnesota Statutes 2016, section 3.972, is amended by adding a subdivision to
34.7read:
34.8 Subd. 4. Certain transit financial activity reporting. (a) The legislative auditor must
34.9perform a transit financial activity review of financial information for the Metropolitan
34.10Council's Transportation Division and the joint powers board under section 297A.992.
34.11Within 14 days of the end of each fiscal quarter, the legislative auditor must submit the
34.12review to the Legislative Audit Commission and the chairs and ranking minority members
34.13of the legislative committees with jurisdiction over transportation policy and finance, finance,
34.14and ways and means.
34.15(b) At a minimum, each transit financial activity review must include:
34.16(1) a summary of monthly financial statements, including balance sheets and operating
34.17statements, that shows income, expenditures, and fund balance;
34.18(2) a list of any obligations and agreements entered into related to transit purposes,
34.19whether for capital or operating, including but not limited to bonds, notes, grants, and future
34.20funding commitments;
34.21(3) the amount of funds in clause (2) that has been committed;
34.22(4) independent analysis by the fiscal oversight officer of the fiscal viability of revenues
34.23and fund balance compared to expenditures, taking into account:
34.24(i) all expenditure commitments;
34.25(ii) cash flow;
34.26(iii) sufficiency of estimated funds; and
34.27(iv) financial solvency of anticipated transit projects; and
34.28(5) a notification concerning whether the requirements under paragraph (c) have been
34.29met.
35.1(c) The Metropolitan Council and the joint powers board under section 297A.992 must
35.2produce monthly financial statements as necessary for the review under paragraph (b),
35.3clause (1), and provide timely information as requested by the legislative auditor.
35.4EFFECTIVE DATE.This section is effective the day following final enactment.
35.5 Sec. 9. Minnesota Statutes 2016, section 3.98, subdivision 1, is amended to read:
35.6 Subdivision 1. Preparation. (a) The
35.7
35.8Budget Office shall prepare a fiscal note at the request of the chair of the standing committee
35.9to which a bill has been referred, or the chair of the house of representatives Ways and
35.10Means Committee, or the chair of the senate Committee on Finance.
35.11(b) The head or chief administrative officer of each department or agency of state
35.12government, including the Supreme Court, shall supply information for fiscal notes upon
35.13request of the director of the Legislative Budget Office. The Legislative Budget Office may
35.14adopt standards and guidelines governing timing of responses to requests for information
35.15and governing access to data, consistent with laws governing access to data. Agencies must
35.16comply with these standards and guidelines.
35.17(c) For purposes of this subdivision, "Supreme Court" includes all agencies, committees,
35.18and commissions supervised or appointed by the state Supreme Court or the state court
35.19administrator.
35.20 Sec. 10. Minnesota Statutes 2016, section 3.98, subdivision 4, is amended to read:
35.21 Subd. 4. Uniform procedure. The
35.22Budget Office shall prescribe a uniform procedure to govern the departments and agencies
35.23of the state in complying with the requirements of this section.
35.24 Sec. 11. Minnesota Statutes 2016, section 3.987, subdivision 1, is amended to read:
35.25 Subdivision 1. Local impact notes. The
35.26Legislative Budget Office shall coordinate the development of a local impact note for any
35.27proposed legislation
35.28minority member of either legislative Tax, Finance, or Ways and Means Committee. Upon
35.29receipt of a request to prepare a local impact note, the
35.30authors of the proposed legislation that the request has been made. The local impact note
35.31must be made available to the public upon request. If the action is among the exceptions
35.32listed in section
36.1
36.2on each type of political subdivision that would result from the proposed legislation. The
36.3
36.4the commissioner of an administrative agency of the state to supply in a timely manner any
36.5information determined to be necessary to determine local fiscal impact. The political
36.6subdivision, its representative association, or commissioner shall convey the requested
36.7information to the
36.8to the effect that the information is accurate and complete to the best of its ability. The
36.9political subdivision, its representative association, or commissioner, when requested, shall
36.10update its determination of local fiscal impact based on actual cost or revenue figures,
36.11improved estimates, or both. Upon completion of the note, the
36.12provide a copy to the authors of the proposed legislation and to the chair and ranking minority
36.13member of each committee to which the proposed legislation is referred.
36.14 Sec. 12. Minnesota Statutes 2016, section 6.481, subdivision 3, is amended to read:
36.15 Subd. 3. CPA firm audit. A county audit performed by a CPA firm must meet the
36.16standards and be in
36.17auditing standards. The state auditor may require additional information from the CPA firm
36.18if the state auditor determines that is in the public interest, but the state auditor must accept
36.19the audit unless the state auditor determines
36.20industry auditing standards
36.21auditor may make additional examinations as the auditor determines to be in the public
36.22interest.
36.23 Sec. 13. Minnesota Statutes 2016, section 6.481, subdivision 6, is amended to read:
36.24 Subd. 6. Payments to state auditor. A county audited by the state auditor must pay the
36.25state auditor for the costs and expenses of the audit. If the state auditor makes additional
36.26examinations of a county whose audit is performed by a CPA firm, the county must pay the
36.27auditor for the cost of these examinations. Payments must be deposited in the
36.28
36.29 Sec. 14. Minnesota Statutes 2016, section 6.56, subdivision 2, is amended to read:
36.30 Subd. 2. Billings by state auditor. Upon the examination of the books, records, accounts,
36.31and affairs of any political subdivision, as provided by law, such political subdivision shall
36.32be liable to the state for the total cost and expenses of such examination, including the
36.33salaries paid to the examiners while actually engaged in making such examination. The
37.1state auditor may bill such political subdivision periodically for service rendered and the
37.2officials responsible for approving and paying claims are authorized to pay said bill promptly.
37.3Said payments shall be without prejudice to any defense against said claims that may exist
37.4or be asserted. The
37.5made for any such examinations, including interest payments made pursuant to subdivision
37.63.
37.7 Sec. 15. Minnesota Statutes 2016, section 6.581, subdivision 4, is amended to read:
37.8 Subd. 4. Reports to legislature. At least 30 days before implementing increased charges
37.9for examinations, the state auditor must report the proposed increases to the chairs and
37.10ranking minority members of the committees in the house of representatives and the senate
37.11with jurisdiction over the budget of the state auditor. By January 15 of each odd-numbered
37.12year, the state auditor must report to the chairs and ranking minority members of the
37.13legislative committees and divisions with primary jurisdiction over the budget of the state
37.14auditor a summary of
37.15related to examinations for the biennium ending June 30 of that year. The report must also
37.16include for the biennium the number of full-time equivalents
37.17employed by the Office of the State Auditor, any audit rate changes stated as a percentage,
37.18the number of audit reports issued, and the number of counties audited.
37.19 Sec. 16. [6.92] LITIGATION EXPENSES.
37.20(a) Unless funds are otherwise expressly provided by law for this purpose, all costs
37.21incurred by the state auditor in preparing and asserting a civil claim or appeal, or in defending
37.22against a civil claim or appeal, related to the proper exercise of the auditor's constitutionally
37.23authorized core functions must be paid by the auditor's constitutional office division. Only
37.24allocations made to the constitutional office division may be used to pay these costs. The
37.25state auditor must report to the chairs and ranking minority members of the committees in
37.26the house of representatives and the senate with jurisdiction over the Office of the State
37.27Auditor by May 1, 2017, and January 1, 2018, and each January 1 thereafter, on the state
37.28auditor's litigation expenses. The report must list each lawsuit the state auditor has brought
37.29or is defending, the grounds for each suit, the litigation expenses incurred since the previous
37.30report under this section, and the projected expenses to complete the suit.
37.31(b) In complying with paragraph (a), the state auditor may not, directly or indirectly,
37.32decrease allocations previously made to, transfer funds from, or otherwise reduce services
37.33provided by any other division of the office.
38.1 Sec. 17. [15.0395] INTERAGENCY AGREEMENTS AND INTRA-AGENCY
38.2TRANSFERS.
38.3(a) The head of each agency must provide quarterly reports to the chairs and ranking
38.4minority members of the legislative committees with jurisdiction over the department or
38.5agency's budget on:
38.6(1) interagency agreements or service-level agreements and any renewals or extensions
38.7of existing interagency or service-level agreements with another agency if the cumulative
38.8value of those agreements is more than $50,000 in a single fiscal year; and
38.9(2) transfers of appropriations between accounts within or between agencies, if the
38.10cumulative value of the transfers is more than $50,000 in a single fiscal year.
38.11The report must include the statutory citation authorizing the agreement, transfer or dollar
38.12amount, purpose, and effective date of the agreement, the duration of the agreement, and a
38.13copy of the agreement.
38.14(b) As used in this section, "agency" includes the departments of the state listed in section
38.1515.01, a multimember state agency in the executive branch described in section 15.012,
38.16paragraph (a), the Office of MN.IT Services, and the Office of Higher Education.
38.17 Sec. 18. [16A.1282] TRANSFERS TO THE GOVERNOR.
38.18An agency shall not transfer money to the governor for services provided by the governor
38.19or to reimburse expenses incurred by the governor.
38.20 Sec. 19. Minnesota Statutes 2016, section 16A.90, is amended to read:
38.2116A.90 EMPLOYEE GAINSHARING SYSTEM.
38.22 Subdivision 1. Commissioner must establish program. (a) The commissioner shall
38.23establish a program to provide onetime bonus compensation to state employees for efforts
38.24made to reduce the costs of operating state government or for ways of providing better or
38.25more efficient state services. The commissioner may authorize an executive branch appointing
38.26authority to make a onetime award to an employee or group of employees whose suggestion
38.27or involvement in a project is determined by the commissioner to have resulted in documented
38.28cost-savings to the state. Before authorizing awards under this section, the commissioner
38.29shall establish guidelines for the program including but not limited to:
38.30(1) the maximum award is ten percent of the documented savings in the first fiscal year
38.31in which the savings are realized up to $50,000;
39.1(2) the award must be paid from the appropriation to which the savings accrued; and
39.2(3) employees whose primary job responsibility is to identify cost savings or ways of
39.3providing better or more efficient state services are generally not eligible for bonus
39.4compensation under this section except in extraordinary circumstances as defined by the
39.5commissioner.
39.6(b) The program required by this section must be in addition to any existing monetary
39.7or nonmonetary performance-based recognition programs for state employees, including
39.8achievement awards, continuous improvement awards, and general employee recognitions.
39.9 Subd. 2. Biannual legislative report. No later than August 1, 2017, and biannually
39.10thereafter, the commissioner must report to the chairs and ranking minority members of the
39.11house of representatives and senate committees with jurisdiction over Minnesota Management
39.12and Budget on the status of the program required by this section. The report must detail:
39.13(1) the specific program guidelines established by the commissioner as required by
39.14subdivision 1, if the guidelines have not been described in a previous report;
39.15(2) any proposed modifications to the established guidelines under consideration by the
39.16commissioner, including the reason for the proposed modifications;
39.17(3) the methods used by the commissioner to promote the program to state employees,
39.18if the methods have not been described in a previous report;
39.19(4) a summary of the results of the program that includes the following, categorized by
39.20agency:
39.21(i) the number of state employees whose suggestions or involvement in a project were
39.22considered for possible bonus compensation, and a description of each suggestion or project
39.23that was considered;
39.24(ii) the total amount of bonus compensation actually awarded, itemized by each suggestion
39.25or project that resulted in an award and the amount awarded for that suggestion or project;
39.26and
39.27(iii) the total amount of documented cost-savings that accrued to the agency as a result
39.28of each suggestion or project for which bonus compensation was granted; and
39.29(5) any recommendations for legislation that, in the judgment of the commissioner,
39.30would improve the effectiveness of the bonus compensation program established by this
39.31section or which would otherwise increase opportunities for state employees to actively
40.1participate in the development and implementation of strategies for reducing the costs of
40.2operating state government or for providing better or more efficient state services.
40.3 Sec. 20. Minnesota Statutes 2016, section 16B.04, subdivision 2, is amended to read:
40.4 Subd. 2. Powers and duties, generally. Subject to other provisions of this chapter, the
40.5commissioner is authorized to:
40.6 (1) supervise, control, review, and approve all state contracts and purchasing, provided
40.7that the commissioner may not approve a state contract with, or the purchase of goods from,
40.8a vendor who intentionally refuses to do business, or who intentionally discriminates in the
40.9basic terms, conditions, or performance of a contract or sale, on the basis of a person's
40.10national origin;
40.11 (2) provide agencies with supplies and equipment;
40.12 (3) investigate and study the management and organization of agencies, and reorganize
40.13them when necessary to ensure their effective and efficient operation;
40.14 (4) manage and control state property, real and personal;
40.15 (5) maintain and operate all state buildings, as described in section
40.161
40.17 (6) supervise, control, review, and approve all capital improvements to state buildings
40.18and the capitol building and grounds;
40.19 (7) provide central mail facilities;
40.20 (8) oversee publication of official documents and provide for their sale;
40.21 (9) manage and operate parking facilities for state employees and a central motor pool
40.22for travel on state business;
40.23 (10) provide rental space within the capitol complex for a private day care center for
40.24children of state employees. The commissioner shall contract for services as provided in
40.25this chapter;
40.26(11) settle state employee workers' compensation claims;
40.27(12) purchase, accept, transfer, warehouse, sell, distribute, or dispose of surplus property
40.28in accordance with state and federal rules and regulations. The commissioner may charge
40.29a fee to cover any expenses incurred in connection with any of these acts; and
40.30(13) provide and manage a central distribution center for federal and state surplus personal
40.31property, as defined in section
41.1 Sec. 21. Minnesota Statutes 2016, section 16B.055, subdivision 1, is amended to read:
41.2 Subdivision 1. Federal Assistive Technology Act. (a) The Department of Administration
41.3is designated as the lead agency to carry out all the responsibilities under the Assistive
41.4Technology Act of 1998, as provided by Public Law 108-364, as amended. The Minnesota
41.5Assistive Technology Advisory Council is established to fulfill the responsibilities required
41.6by the Assistive Technology Act, as provided by Public Law 108-364, as amended. Because
41.7the existence of this council is required by federal law, this council does not expire.
41.8 (b) Except as provided in paragraph (c), the governor shall appoint the membership of
41.9the council as required by the Assistive Technology Act of 1998, as provided by Public
41.10Law 108-364, as amended. After the governor has completed the appointments required by
41.11this subdivision, the commissioner of administration, or the commissioner's designee, shall
41.12convene the first meeting of the council following the appointments. Members shall serve
41.13two-year terms commencing July 1 of each odd-numbered year, and receive the compensation
41.14specified by the Assistive Technology Act of 1998, as provided by Public Law 108-364, as
41.15amended. The members of the council shall select their chair at the first meeting following
41.16their appointment.
41.17(c) After consulting with the appropriate commissioner, the commissioner of
41.18administration shall appoint a representative from:
41.19(1) State Services for the Blind who has assistive technology expertise;
41.20(2) vocational rehabilitation services who has assistive technology expertise;
41.21(3) the Workforce Development Council; and
41.22(4) the Department of Education who has assistive technology expertise.
41.23 Sec. 22. Minnesota Statutes 2016, section 16B.335, subdivision 1, is amended to read:
41.24 Subdivision 1. Construction and major remodeling. (a) The commissioner, or any
41.25other recipient to whom an appropriation is made to acquire or better public lands or buildings
41.26or other public improvements of a capital nature, must not prepare final plans and
41.27specifications for any construction, major remodeling, or land acquisition in anticipation
41.28of which the appropriation was made until the agency that will use the project has presented
41.29the program plan and cost estimates for all elements necessary to complete the project to
41.30the chair of the senate Finance Committee and the chair of the house of representatives
41.31Ways and Means Committee and the chairs have made their recommendations, and the
41.32chair and ranking minority member of the senate Capital Investment Committee and the
41.33chair and ranking minority member of the house of representatives Capital Investment
42.1Committee are notified. "Construction or major remodeling" means construction of a new
42.2building, a substantial addition to an existing building, or a substantial change to the interior
42.3configuration of an existing building. The presentation must note any significant changes
42.4in the work that will be done, or in its cost, since the appropriation for the project was
42.5enacted or from the predesign submittal. The program plans and estimates must be presented
42.6for review at least two weeks before a recommendation is needed. The recommendations
42.7are advisory only. Failure or refusal to make a recommendation is considered a negative
42.8recommendation.
42.9(b) The chairs and ranking minority members of the senate Finance and Capital
42.10Investment Committees
42.11Means Committees, and the house of representatives and senate budget committees or
42.12divisions with jurisdiction over the agency that will use the project must also be notified
42.13whenever there is a substantial change in a construction or major remodeling project, or in
42.14its cost. This notice must include the nature and reason for the change and the anticipated
42.15cost of the change. The notice must be given no later than ten days after signing a change
42.16order or other document authorizing a change in the project, or if there is not a change order
42.17or other document, no later than ten days after the project owner becomes aware of a
42.18substantial change in the project or its cost.
42.19
42.20(a) to seek recommendations before preparing final plans and specifications include
42.21demolition or decommissioning of state assets, hazardous material projects, utility
42.22infrastructure projects, environmental testing, parking lots, parking structures, park and ride
42.23facilities, bus rapid transit stations, light rail lines, passenger rail projects, exterior lighting,
42.24fencing, highway rest areas, truck stations, storage facilities not consisting primarily of
42.25offices or heated work areas, roads, bridges, trails, pathways, campgrounds, athletic fields,
42.26dams, floodwater retention systems, water access sites, harbors, sewer separation projects,
42.27water and wastewater facilities, port development projects for which the commissioner of
42.28transportation has entered into an assistance agreement under section
42.29a local government project with a construction cost of less than $1,500,000, or any other
42.30capital project with a construction cost of less than $750,000. The requirements in paragraph
42.31(b) to give notice of changes applies to these projects.
42.32 Sec. 23. Minnesota Statutes 2016, section 16B.371, is amended to read:
42.3316B.371 ASSISTANCE TO SMALL AGENCIES.
43.1(a) The commissioner may provide administrative support services to small agencies.
43.2To promote efficiency and cost-effective use of state resources, and to improve financial
43.3controls, the commissioner may require a small agency to receive administrative support
43.4services through the Department of Administration or through another agency designated
43.5by the commissioner. Services subject to this section include finance, accounting, payroll,
43.6purchasing, human resources, and other services designated by the commissioner. The
43.7commissioner may determine what constitutes a small agency for purposes of this section.
43.8The commissioner, in consultation with the commissioner of management and budget and
43.9small agencies, shall evaluate small agencies' needs for administrative support services. If
43.10the commissioner provides administrative support services to a small agency, the
43.11commissioner must enter into a service level agreement with the agency, specifying the
43.12services to be provided and the costs and anticipated outcomes of the services.
43.13(b) The Minnesota Council on Latino Affairs, the Council for Minnesotans of African
43.14Heritage, the Council on Asian-Pacific Minnesotans, the Indian Affairs Council, and the
43.15Minnesota State Council on Disability
43.16(a).
43.17 (c) The commissioner of administration
43.18under this section. The amounts assessed are appropriated to the commissioner.
43.19(d) For agencies covered in this section, the commissioner has the authority to require
43.20the agency to comply with applicable state finance, accounting, payroll, purchasing, and
43.21human resources policies. The agencies served retain the ownership and responsibility for
43.22spending decisions and for ongoing implementation of appropriate business operations.
43.23 Sec. 24. Minnesota Statutes 2016, section 16B.4805, subdivision 2, is amended to read:
43.24 Subd. 2. Reimbursement for making reasonable accommodation. The commissioner
43.25of administration shall reimburse state agencies for up to 50 percent of the cost of expenses
43.26incurred in making reasonable accommodations eligible for reimbursement for agency
43.27employees and applicants for employment to the extent that funds are available in the
43.28accommodation account established under subdivision 3 for this purpose.
43.29 Sec. 25. Minnesota Statutes 2016, section 16B.4805, subdivision 4, is amended to read:
43.30 Subd. 4. Administration costs. The commissioner may use up to
43.31the biennial appropriation for administration of this section.
44.1 Sec. 26. Minnesota Statutes 2016, section 16B.97, is amended by adding a subdivision to
44.2read:
44.3 Subd. 6. Commerce grants. The office must monitor grants made by the Department
44.4of Commerce.
44.5 Sec. 27. [16B.991] TERMINATION OF GRANT.
44.6Each grant agreement subject to sections 16B.97 and 16B.98 must provide that the
44.7agreement will immediately be terminated if:
44.8(1) the recipient is convicted of a criminal offense relating to a state grant agreement;
44.9or
44.10(2) the agency entering into the grant agreement or the commissioner of administration
44.11determines that the grant recipient is under investigation by a federal agency, a state agency,
44.12or a local law enforcement agency for matters relating to administration of a state grant.
44.13 Sec. 28. Minnesota Statutes 2016, section 16E.016, is amended to read:
44.1416E.016 RESPONSIBILITY FOR INFORMATION TECHNOLOGY SERVICES
44.15AND EQUIPMENT.
44.16(a) The chief information officer is responsible for providing or entering into managed
44.17services contracts for the provision, improvement, and development of the following
44.18information technology systems and services to state agencies:
44.19(1) state data centers;
44.20(2) mainframes including system software;
44.21(3) servers including system software;
44.22(4) desktops including system software;
44.23(5) laptop computers including system software;
44.24(6) a data network including system software;
44.25(7) database, electronic mail, office systems, reporting, and other standard software
44.26tools;
44.27(8) business application software and related technical support services;
44.28(9) help desk for the components listed in clauses (1) to (8);
45.1(10) maintenance, problem resolution, and break-fix for the components listed in clauses
45.2(1) to (8);
45.3(11) regular upgrades and replacement for the components listed in clauses (1) to (8);
45.4and
45.5(12) network-connected output devices.
45.6(b) All state agency employees whose work primarily involves functions specified in
45.7paragraph (a) are employees of the Office of MN.IT Services. This includes employees who
45.8directly perform the functions in paragraph (a), as well as employees whose work primarily
45.9involves managing, supervising, or providing administrative services or support services
45.10to employees who directly perform these functions. The chief information officer may assign
45.11employees of the office to perform work exclusively for another state agency.
45.12(c) Subject to sections
45.13state agency to obtain services specified in paragraph (a) through a contract with an outside
45.14vendor when the chief information officer and the agency head agree that a contract would
45.15provide best value, as defined in section
45.16chief information officer must require that agency contracts with outside vendors ensure
45.17that systems and services are compatible with standards established by the Office of MN.IT
45.18Services.
45.19(d) The Minnesota State Retirement System, the Public Employees Retirement
45.20Association, the Teachers Retirement Association, and the State Board of Investment
45.21
45.22
45.23(e) Effective upon certification by the chief information officer that the information
45.24technology systems and services provided under this section meet all professional and
45.25technical standards necessary for the entity to perform its functions, the following are state
45.26agencies for purposes of this section: the Campaign Finance and Public Disclosure Board,
45.27the State Lottery, and the Statewide Radio Board.
45.28 Sec. 29. Minnesota Statutes 2016, section 16E.0466, is amended to read:
45.2916E.0466 STATE AGENCY TECHNOLOGY PROJECTS.
45.30 Subdivision 1. Consultation required. (a) Every state agency with an information or
45.31telecommunications project must consult with the Office of MN.IT Services to determine
45.32the information technology cost of the project. Upon agreement between the commissioner
45.33of a particular agency and the chief information officer, the agency must transfer the
46.1information technology cost portion of the project to the Office of MN.IT Services. Service
46.2level agreements must document all project-related transfers under this section. Those
46.3agencies specified in section
46.4this section.
46.5(b) Notwithstanding section
46.6appropriated to a state agency may be transferred to the information and telecommunications
46.7technology systems and services account for the information technology cost of a specific
46.8project, subject to the review of the Legislative Advisory Commission, under section
46.9subdivision 3
46.10 Subd. 2. Legislative report. No later than October 1, 2017, and quarterly thereafter, the
46.11state chief information officer must submit a comprehensive project portfolio report to the
46.12chairs and ranking minority members of the house of representatives and senate committees
46.13with jurisdiction over state government finance on projects requiring consultation under
46.14subdivision 1. The report must itemize:
46.15(1) each project presented to the office for consultation in the time since the last report;
46.16(2) the information technology cost associated with the project, including the information
46.17technology cost as a percentage of the project's complete budget;
46.18(3) the status of the information technology components of the project's development;
46.19(4) the date the information technology components of the project are expected to be
46.20completed; and
46.21(5) the projected costs for ongoing support and maintenance of the information technology
46.22components after the project is complete.
46.23 Sec. 30. [43A.035] LIMIT ON NUMBER OF FULL-TIME EQUIVALENT
46.24EMPLOYEES; USE OF AGENCY SAVINGS.
46.25 Subdivision 1. Number of full-time equivalent employees limited. The total number
46.26of full-time equivalent employees employed in all executive branch agencies may not exceed
46.2731,691. The commissioner of management and budget may forbid an executive agency from
46.28hiring a new employee or from filling a vacancy as the commissioner determines necessary
46.29to ensure compliance with this section. Any reductions in staff should prioritize protecting
46.30client-facing health care workers, corrections officers, public safety workers, and mental
46.31health workers. As a means of achieving compliance with this subdivision, the commissioner
46.32may authorize an agency to provide an early retirement incentive to an executive branch
46.33employee, under which the state will continue to make the employer contribution for health
47.1insurance after the employee has terminated state service. The commissioner must prescribe
47.2eligibility requirements and the maximum duration of the payments.
47.3 Subd. 2. Use of savings resulting from vacant positions. To the extent that an executive
47.4branch agency accrues savings in personnel costs resulting from the departure of an agency
47.5employee or the maintenance of a vacant position, those savings may only be used to support
47.6a new employee in that position at an equal or lesser rate of compensation, and for an equal
47.7or lesser full-time equivalent work status. Savings accrued from departed personnel or
47.8maintenance of a vacant position may not be transferred or reallocated to another program
47.9or activity within the executive branch agency, or used to increase the number of full-time
47.10equivalent employees at the agency, unless expressly authorized by law.
47.11 Subd. 3. Definition. For purposes of this section, an "executive branch agency" does
47.12not include the Minnesota State Colleges and Universities or statewide pension plans.
47.13 Sec. 31. Minnesota Statutes 2016, section 43A.17, subdivision 11, is amended to read:
47.14 Subd. 11. Severance pay for certain employees. (a) For purposes of this subdivision,
47.15"highly compensated employee" means an employee of the state whose estimated annual
47.16compensation is greater than 60 percent of the governor's annual salary, and who is not
47.17covered by a collective bargaining agreement negotiated under chapter 179A or a
47.18compensation plan authorized under section 43A.18, subdivision 3a.
47.19(b) Severance pay for a highly compensated employee includes benefits or compensation
47.20with a quantifiable monetary value, that are provided for an employee upon termination of
47.21employment and are not part of the employee's annual wages and benefits and are not
47.22specifically excluded by this subdivision. Severance pay does not include payments for
47.23accumulated vacation, accumulated sick leave, and accumulated sick leave liquidated to
47.24cover the cost of group term insurance. Severance pay for a highly compensated employee
47.25does not include payments of periodic contributions by an employer toward premiums for
47.26group insurance policies. The severance pay for a highly compensated employee must be
47.27excluded from retirement deductions and from any calculations of retirement benefits.
47.28Severance pay for a highly compensated employee must be paid in a manner mutually
47.29agreeable to the employee and the employee's appointing authority over a period not to
47.30exceed five years from retirement or termination of employment. If a retired or terminated
47.31employee dies before all or a portion of the severance pay has been disbursed, the balance
47.32due must be paid to a named beneficiary or, lacking one, to the deceased's estate. Except
47.33as provided in paragraph (c), severance pay provided for a highly compensated employee
48.1leaving employment may not exceed
48.2of:
48.3(1) six months pay; or
48.4(2) the highly compensated employee's regular rate of pay multiplied by 35 percent of
48.5the highly compensated employee's accumulated but unused sick leave hours.
48.6(c) Severance pay for a highly compensated employee may exceed
48.7
48.8early retirement incentive offer approved by the state and the same early retirement incentive
48.9offer is also made available to all other employees of the appointing authority who meet
48.10generally defined criteria relative to age or length of service.
48.11(d) An appointing authority may make severance payments to a highly compensated
48.12employee, up to the limits prescribed in this subdivision, only if doing so is authorized by
48.13a compensation plan under section 43A.18 that governs the employee, provided that the
48.14following highly compensated employees are not eligible for severance pay:
48.15 (1) a commissioner, deputy commissioner, or assistant commissioner of any state
48.16department or agency as listed in section 15.01 or 15.06, including the state chief information
48.17officer; and
48.18 (2) any unclassified employee who is also a public official, as defined in section 10A.01,
48.19subdivision 35.
48.20(e) Severance pay shall not be paid to a highly compensated employee who has been
48.21employed by the appointing authority for less than six months or who voluntarily terminates
48.22employment.
48.23EFFECTIVE DATE.This section is effective the day following final enactment.
48.24 Sec. 32. Minnesota Statutes 2016, section 43A.24, is amended by adding a subdivision to
48.25read:
48.26 Subd. 1a. Opt out. (a) An individual eligible for state-paid hospital, medical, and dental
48.27benefits under this section has the right to decline those benefits, provided the individual
48.28declining the benefits can prove health insurance coverage from another source. Any
48.29individual declining benefits must do so in writing, signed and dated, on a form provided
48.30by the commissioner.
48.31(b) The commissioner must create, and make available in hard copy and online a form
48.32for individuals to use in declining state-paid hospital, medical, and dental benefits. The form
49.1must, at a minimum, include notice to the declining individual of the next available
49.2opportunity and procedure to re-enroll in the benefits.
49.3(c) No later than January 15 of each year, the commissioner of management and budget
49.4must provide a report to the chairs and ranking minority members of the legislative
49.5committees with jurisdiction over state government finance on the number of employees
49.6choosing to opt-out of state employee group insurance coverage under this section. The
49.7report must provide itemized statistics, by agency, and include the total amount of savings
49.8accrued to each agency resulting from the opt-outs.
49.9 Sec. 33. [118A.09] ADDITIONAL LONG-TERM EQUITY INVESTMENT
49.10AUTHORITY.
49.11 Subdivision 1. Definition; qualifying government. "Qualifying government" means:
49.12(1) a county or statutory or home rule charter city with a population of more than 100,000;
49.13(2) a county or statutory or home rule charter city which had its most recently issued
49.14general obligation bonds rated in the highest category by a national bond rating agency; or
49.15(3) a self-insurance pool listed in section 471.982, subdivision 3.
49.16A county or statutory or home rule charter city with a population of 100,000 or less that is
49.17a qualifying government, but is subsequently rated less than the highest category by a
49.18national bond rating agency on a general obligation bond issue, may not invest additional
49.19funds under this section but may continue to manage funds previously invested under
49.20subdivision 2.
49.21 Subd. 2. Additional investment authority. Qualifying governments may invest the
49.22amount described in subdivision 3:
49.23(1) in index mutual funds based in the United States and indexed to a broad market
49.24United States equity index; or
49.25(2) with the Minnesota State Board of Investment subject to such terms and minimum
49.26amounts as may be adopted by the board. Index mutual fund investments must be made
49.27directly with the main sales office of the fund.
49.28 Subd. 3. Funds. (a) Qualifying governments may only invest under subdivision 2
49.29according to the limitations in this subdivision. A qualifying government under subdivision
49.301, clause (1) or (2), may only invest its funds that are held for long-term capital plans
49.31authorized by the city council or county board, or long-term obligations of the qualifying
49.32government. Long-term obligations of the qualifying government include long-term capital
50.1plan reserves, funds held to offset long-term environmental exposure, other postemployment
50.2benefit liabilities, compensated absences, and other long-term obligations established by
50.3applicable accounting standards.
50.4(b) Qualifying governments under subdivision 1, clause (1) or (2), may invest up to 15
50.5percent of the sum of:
50.6(1) unassigned cash;
50.7(2) cash equivalents;
50.8(3) deposits; and
50.9(4) investments.
50.10This calculation must be based on the qualifying government's most recent audited statement
50.11of net position, which must be compliant and audited pursuant to governmental accounting
50.12and auditing standards. Once the amount invested reaches 15 percent of the sum of
50.13unassigned cash, cash equivalents, deposits, and investments, no further funds may be
50.14invested under this section; however, a qualifying government may continue to manage the
50.15funds previously invested under this section even if the total amount subsequently exceeds
50.1615 percent of the sum of unassigned cash, cash equivalents, deposits, and investments.
50.17(c) A qualified government under subdivision 1, clause (3), may invest up to the lesser
50.18of:
50.19(1) 15 percent of the sum of its cash, cash equivalents, deposits, and investments; or
50.20(2) 25 percent of its net assets as reported on the pool's most recent audited statement
50.21of net position, which must be compliant and audited pursuant to governmental accounting
50.22and auditing standards.
50.23 Subd. 4. Approval. Before investing pursuant to this section, the governing body of the
50.24qualifying government must adopt a resolution that includes the following statements:
50.25(1) the governing body understands that investments under subdivision 2 have a risk of
50.26loss;
50.27(2) the governing body understands the type of funds that are being invested and the
50.28specific investment itself; and
50.29(3) the governing body certifies that all funds designated for investment through the
50.30State Board of Investment meet the requirements of this section and the policies and
50.31procedures established by the State Board of Investment.
51.1 Subd. 5. Public Employees Retirement Association to act as account administrator.
51.2A qualifying government exercising authority under this section to invest amounts with the
51.3State Board of Investment shall establish an account with the Public Employees Retirement
51.4Association (PERA), which shall act as the account administrator.
51.5 Subd. 6. Purpose of account. The account established under subdivision 5 may only
51.6be used for the purposes provided under subdivision 3. PERA may rely on representations
51.7made by the qualifying government in exercising its duties as account administrator and
51.8has no duty to further verify qualifications, use, or intended use of the funds that are invested
51.9or withdrawn.
51.10 Subd. 7. Account maintenance. (a) A qualifying government may establish an account
51.11to be held under the supervision of PERA for the purposes of investing funds with the State
51.12Board of Investment under subdivision 2. PERA shall establish a separate account for each
51.13qualifying government. PERA may charge participating qualifying governments a fee for
51.14reasonable administrative costs. The amount of any fee charged by PERA is annually
51.15appropriated to the association from the account. PERA may establish other reasonable
51.16terms and conditions for creation and maintenance of these accounts.
51.17(b) PERA must report to the qualifying government on the investment returns of invested
51.18funds and on all investment fees or costs incurred by the account.
51.19 Subd. 8. Investment. (a) The assets of an account shall be invested and held as required
51.20by this subdivision.
51.21(b) PERA must certify all money in the accounts for which it is account administrator
51.22to the State Board of Investment for investment under section 11A.14, subject to the policies
51.23and procedures established by the State Board of Investment. Investment earnings must be
51.24credited to the account of the individual qualifying government.
51.25(c) For accounts invested by the State Board of Investment, the investment restrictions
51.26shall be the same as those generally applicable to the State Board of Investment.
51.27(d) A qualifying government may provide investment direction to PERA, subject to the
51.28policies and procedures established by the State Board of Investment.
51.29 Subd. 9. Withdrawal of funds and termination of account. (a) A government may
51.30withdraw some or all of its money or terminate the account.
51.31(b) A government requesting withdrawal of money from an account created under this
51.32section must do so at a time and in the manner required by the executive director of PERA,
51.33subject to the policies and procedures established by the State Board of Investment.
52.1 Sec. 34. Minnesota Statutes 2016, section 138.69, is amended to read:
52.2138.69 PUBLIC AREAS OF THE CAPITOL.
52.3The Minnesota State Historical Society is designated the research agency and is
52.4responsible for the interpretation of the public areas for visitors to the Capitol. This involves
52.5conducting or approving public programs and tours in the Capitol and State Office Building,
52.6including exhibits held in the Capitol, providing informational services, acting as advisor
52.7on preservation, recommending appropriate custodial policies, and maintaining and repairing
52.8all works of art. Notwithstanding section 138.668, the society may not charge a fee for
52.9general tours at the Capitol but may charge fees for special programs other than general
52.10tours.
52.11 Sec. 35. Minnesota Statutes 2016, section 155A.30, subdivision 5, is amended to read:
52.12 Subd. 5. Conditions precedent to issuance. A license must not be issued unless the
52.13board first determines that the applicant has met the requirements in clauses (1) to
52.14(1) the applicant must have a sound financial condition with sufficient resources available
52.15to meet the school's financial obligations; to refund all tuition and other charges, within a
52.16reasonable period of time, in the event of dissolution of the school or in the event of any
52.17justifiable claims for refund against the school; to provide adequate service to its students
52.18and prospective students; and to maintain proper use and support of the school;
52.19(2) the applicant must have satisfactory training facilities with sufficient tools and
52.20equipment and the necessary number of work stations to adequately train the students
52.21currently enrolled, and those proposed to be enrolled;
52.22(3) the applicant must employ a sufficient number of qualified instructors trained by
52.23experience and education to give the training contemplated;
52.24(4) the premises and conditions under which the students work and study must be sanitary,
52.25healthful, and safe according to modern standards;
52.26(5) each occupational course or program of instruction or study must be of such quality
52.27and content as to provide education and training that will adequately prepare enrolled
52.28students for testing, licensing, and entry level positions
52.29
52.30(6) the school must have coverage by professional liability insurance of at least $25,000
52.31per incident and an accumulation of $150,000 for each premium year;
52.32(7) the applicant shall provide evidence of the school's compliance with section
53.1(8) the applicant, except the state and its political subdivisions as described in section
53.3bond in the amount of no less than ten percent of the preceding year's gross income from
53.4student tuition, fees, and other required institutional charges, but in no event less than
53.5$10,000, conditioned upon the faithful performance of all contracts and agreements with
53.6students made by the applicant. New schools must base the bond amount on the anticipated
53.7gross income from student tuition, fees, and other required institutional charges for the third
53.8year of operation, but in no event less than $10,000. The applicant must compute the amount
53.9of the surety bond and verify that the amount of the surety bond complies with this
53.10subdivision. The bond shall run to the
53.11have a cause of action against the applicant arising at any time after the bond is filed and
53.12before it is canceled for breach of any contract or agreement made by the applicant with
53.13any student.
53.14
53.15notice in writing to the board and shall be relieved of liability for any breach of condition
53.16occurring after the effective date of cancellation; and
53.17(9) the applicant must
53.18designated
53.19EFFECTIVE DATE.This section is effective the day following final enactment.
53.20 Sec. 36. Minnesota Statutes 2016, section 179A.20, is amended by adding a subdivision
53.21to read:
53.22 Subd. 2b. Limited by appropriation. The commissioner of management and budget
53.23may not contract to pay more to employees in compensation and benefits in a biennium
53.24than is permitted under an approved spending plan as provided in section 16A.14.
53.25 Sec. 37. Minnesota Statutes 2016, section 270C.13, subdivision 1, is amended to read:
53.26 Subdivision 1. Biennial report. The commissioner shall report to the legislature by
53.27March 1 of each odd-numbered year on the overall incidence of the income tax, sales and
53.28excise taxes, and property tax. The report shall present information on the distribution of
53.29the tax burden as follows: (1) for the overall income distribution, using a systemwide
53.30incidence measure such as the Suits index or other appropriate measures of equality and
53.31inequality; (2) by income classes, including at a minimum deciles of the income distribution;
53.32and (3) by other appropriate taxpayer characteristics. The report must also include information
53.33on the distribution of the burden of federal taxes borne by Minnesota residents.
54.1 Sec. 38. Minnesota Statutes 2016, section 353.27, subdivision 3c, is amended to read:
54.2 Subd. 3c. Former MERF members; member and employer contributions. (a) For
54.3the period July 1, 2015, through December 31, 2031, the member contributions for former
54.4members of the Minneapolis Employees Retirement Fund and by the former Minneapolis
54.5Employees Retirement Fund-covered employing units are governed by this subdivision.
54.6(b) The member contribution for a public employee who was a member of the former
54.7Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of
54.8the employee.
54.9(c) The employer regular contribution with respect to a public employee who was a
54.10member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75
54.11percent of the salary of the employee.
54.12(d)
54.13is the employing unit's share of $31,000,000.
54.14
54.15(e) Each employing unit's share under paragraph (d) is the amount determined from an
54.16allocation between each employing unit in the portion equal to the unit's employer
54.17supplemental contribution paid or payable under Minnesota Statutes 2012, section
54.18during calendar year 2014.
54.19(f) The employer supplemental contribution amount under paragraph (d) for calendar
54.20year 2015 must be invoiced by the executive director of the Public Employees Retirement
54.21Association by July 1, 2015. The calendar year 2015 payment is payable in a single amount
54.22on or before September 30, 2015. For subsequent calendar years, the employer supplemental
54.23contribution under paragraph (d) must be invoiced on January 31 of each year and is payable
54.24in two parts, with the first half payable on or before July 31 and with the second half payable
54.25on or before December 15. Late payments are payable with compound interest at the rate
54.26of 0.71 percent per month for each month or portion of a month that has elapsed after the
54.27due date.
54.28(g) The employer supplemental contribution under paragraph (d) terminates on December
54.2931, 2031.
54.30 Sec. 39. Minnesota Statutes 2016, section 353.505, is amended to read:
54.31353.505 STATE CONTRIBUTIONS; FORMER MERF DIVISION.
55.1(a) On September 15, 2015,
55.2shall pay to the general employees retirement plan of the Public Employees Retirement
55.3Association, with respect to the former MERF division, $6,000,000.
55.4
55.5
55.6
55.7(b) State contributions under this section end on September 15, 2031.
55.8 Sec. 40. Minnesota Statutes 2016, section 471.6161, subdivision 8, is amended to read:
55.9 Subd. 8. School districts; group health insurance coverage. (a) Any entity providing
55.10group health insurance coverage to a school district must provide the school district with
55.11school district-specific nonidentifiable aggregate claims records for the most recent 24
55.12months within 30 days of the request.
55.13(b) School districts shall request proposals for group health insurance coverage as
55.14provided in subdivision 2 from a minimum of three potential sources of coverage.
55.15
55.16subdivision 1 must respond to requests for proposals received directly from a school district.
55.17School districts that are self-insured must also follow these provisions, except as provided
55.18in paragraph (f). School districts must make requests for proposals at least 150 days prior
55.19to the expiration of the existing contract but not more frequently than once every 24 months.
55.20The request for proposals must include the most recently available 24 months of
55.21nonidentifiable aggregate claims data. The request for proposals must be publicly released
55.22at or prior to its release to potential sources of coverage.
55.23(c) School district contracts for group health insurance must not be longer than
55.24years
55.25
55.26(d) All initial proposals shall be sealed upon receipt until they are all opened no less
55.27than 90 days prior to the plan's renewal date in the presence of up to three representatives
55.28selected by the exclusive representative of the largest group of employees. Section
55.29subdivision 3
55.30exclusive representative must maintain the data according to this classification and are
55.31subject to the remedies and penalties under sections
55.32requirement.
56.1(e) A school district, in consultation with the same representatives referenced in paragraph
56.2(d), may continue to negotiate with any entity that submitted a proposal under paragraph
56.3(d) in order to reduce costs or improve services under the proposal. Following the negotiations
56.4any entity that submitted an initial proposal may submit a final proposal incorporating the
56.5negotiations, which is due no less than 75 days prior to the plan's renewal date. All the final
56.6proposals submitted must be opened at the same time in the presence of up to three
56.7representatives selected by the exclusive representative of the largest group of employees.
56.8Notwithstanding section
56.9final proposals, all the proposals, including any made under paragraph (d), and other data
56.10submitted in connection with the proposals are public data. The school district may choose
56.11from any of the initial or final proposals without further negotiations and in accordance
56.12with subdivision 5, but not sooner than 15 days after the proposals become public data.
56.13(f) School districts that are self-insured shall follow all of the requirements of this section,
56.14except that:
56.15(1) their requests for proposals may be for third-party administrator services, where
56.16applicable;
56.17(2) these requests for proposals must be from a minimum of three different sources,
56.18which may include both entities referenced in subdivision 1 and providers of third-party
56.19administrator services;
56.20
56.21
56.22
56.23
56.24
56.25
56.26
56.27
56.28
56.29expiration of the existing contract; and
56.30
56.31all proposals shall be opened at the same time and in the presence of the exclusive
56.32representative, where applicable.
57.1(g) Nothing in this section shall restrict the authority granted to school district boards
57.2of education by section
57.3
57.4(h) An entity providing group health insurance to a school district under a multiyear
57.5contract must give notice of any rate or plan design changes applicable under the contract
57.6at least 90 days before the effective date of any change. The notice must be given to the
57.7school district and to the exclusive representatives of employees.
57.8(i) The exclusive representative of the largest group of employees shall comply with
57.9this subdivision and must not exercise any of their abilities under section 43A.316,
57.10subdivision 5, notwithstanding anything contained in that section, or any other law to the
57.11contrary.
57.12EFFECTIVE DATE.This section is effective the day following final enactment.
57.13 Sec. 41. Minnesota Statutes 2016, section 471.617, subdivision 2, is amended to read:
57.14 Subd. 2. Jointly. Any two or more statutory or home rule charter cities, counties, school
57.15districts, or instrumentalities thereof which together have more than 100 employees may
57.16jointly self-insure for any employee health benefits including long-term disability, but not
57.17for employee life benefits, subject to the same requirements as an individual self-insurer
57.18under subdivision 1. Self-insurance pools under this section are subject to section
57.19A self-insurance pool established and operated by one or more service cooperatives governed
57.20by section
57.21subdivision
57.22
57.23commissioner of commerce may adopt rules pursuant to chapter 14, providing standards or
57.24guidelines for the operation and administration of self-insurance pools.
57.25EFFECTIVE DATE.This section is effective the day following final enactment.
57.26 Sec. 42. Minnesota Statutes 2016, section 508.12, subdivision 1, is amended to read:
57.27 Subdivision 1. Examiner and deputy examiner. The judges of the district court shall
57.28appoint a competent attorney in each county within their respective districts to be an examiner
57.29of titles and legal adviser to the registrar in said county, to which examiner all applications
57.30to register title to land are referred without further order, and may appoint attorneys to serve
57.31as deputy examiners who shall act in the name of the examiner and under the examiner's
57.32supervision and control, and the deputy's acts shall be the acts of the examiners. The examiner
58.1of titles and deputy examiners shall hold office subject to the will and discretion of the
58.2district court by whom appointed. The examiner's compensation and that of the examiner's
58.3deputies shall be fixed and determined by the court and paid in the same manner as the
58.4compensation of other county employees is paid except that in all counties having fewer
58.5than 75,000 inhabitants, and in Stearns, Dakota, Scott, Wright, Sherburne, and Olmsted
58.6Counties the fees and compensation of the examiners for services as legal adviser to the
58.7registrar shall be determined by the judges of the district court and paid in the same manner
58.8as the compensation of other county employees is paid, but in every other instance shall be
58.9paid by the person applying to have the person's title registered or for other action or relief
58.10which requires the services, certification or approval of the examiner.
58.11 Sec. 43. Minnesota Statutes 2016, section 518A.79, is amended by adding a subdivision
58.12to read:
58.13 Subd. 3a. Open meetings. Except as otherwise provided in this section, the task force
58.14is subject to chapter 13D. A meeting of the task force occurs when a quorum is present and
58.15the members receive information, discuss, or take action on any matter relating to the duties
58.16of the task force. The task force may conduct meetings as provided in section 13D.015 or
58.1713D.02. The task force may conduct meetings at any location in the state that is appropriate
58.18for the purposes of the task force as long as the location is open and accessible to the public.
58.19For legislative members of the task force, enforcement of this subdivision is governed by
58.20section 3.055, subdivision 2. For nonlegislative members of the task force, enforcement of
58.21this subdivision is governed by section 13D.06, subdivisions 1 and 2.
58.22EFFECTIVE DATE.This section is effective January 1, 2018.
58.23 Sec. 44. Laws 2016, chapter 127, section 8, is amended to read:
58.24 Sec. 8. EFFECTIVE DATE; APPLICATION.
58.25Sections 1 to 7 are effective the day following final enactment. With respect to eyelash
58.26technicians, the Board of Cosmetologist Examiners must not enforce sections 1 to 7 until
58.27
58.28board regarding eyelash technicians must be 14 hours.
59.1 Sec. 45. COMMISSIONER OF REVENUE TO DETERMINE ADEQUACY OF
59.2CURRENT RULES AND VALUATION PRACTICES FOR STATE-ASSESSED
59.3PIPELINES.
59.4The commissioner of revenue must review all current rules and practices relating to the
59.5valuation of pipeline companies that are assessed by the state. The commissioner must
59.6determine whether current rules and practices provide accurate estimates of market value.
59.7By February 1, 2018, the commissioner must prepare testimony for the house of
59.8representatives and senate committees having jurisdiction over property taxes recommending
59.9changes to the rules and practices to provide more accurate assessments and reduce the
59.10number and amount of judgments against the state and counties for state-assessed pipeline
59.11property. Costs associated with conducting the review required by this section must be paid
59.12from existing funds appropriated to the commissioner by law.
59.13 Sec. 46. OFFICE OF MN.IT SERVICES; PERFORMANCE OUTCOMES
59.14REQUIRED.
59.15 Subdivision 1. Completion of agency consolidation. No later than December 31, 2018,
59.16the state chief information officer must complete the executive branch information technology
59.17consolidation required by Laws 2011, First Special Session chapter 10, article 4. The head
59.18of any state agency subject to consolidation must assist the state chief information officer
59.19as necessary to implement the requirements of this subdivision.
59.20 Subd. 2. Information technology efficiencies and solutions. No later than December
59.2131, 2018, the state chief information officer shall:
59.22(1) host at least 25 percent of all state agency servers on a public cloud solution;
59.23(2) store at least 35 percent of all state agency data on a public cloud solution; and
59.24(3) operate no more than six data centers statewide.
59.25 Subd. 3. Enterprise services; personnel efficiencies. No later than June 30, 2019, the
59.26state chief information officer shall reduce the Office of MN.IT Services' total cost for
59.27enterprise services personnel by at least $3,000,000.
59.28 Subd. 4. Legislative report; application consolidation. No later than January 1, 2018,
59.29the state chief information officer must submit a report to the chairs and ranking minority
59.30members of the house of representatives and senate committees with jurisdiction over state
59.31government finance on the status of business application software consolidation across state
59.32agencies. At a minimum, the report must describe the outcomes achieved to date, a plan
60.1and timeline for continued consolidation of business application software with measurable
60.2outcome goals, and recommendations, if any, on legislation necessary to facilitate
60.3achievement of these goals.
60.4 Sec. 47. INITIAL TRANSIT FINANCIAL ACTIVITY REPORTING.
60.5(a) The first transit financial activity review and report submitted under Minnesota
60.6Statutes, section 3.972, subdivision 4, must include financial information from the period
60.7beginning on January 1, 2016, and through the end of the fiscal quarter immediately preceding
60.8the date of the report.
60.9(b) The legislative auditor must provide a copy of the review under paragraph (a) to
60.10each county that is party to the joint powers agreement under Minnesota Statutes, section
60.11297A.992.
60.12EFFECTIVE DATE.This section is effective the day following final enactment.
60.13 Sec. 48. LIMIT ON EXPENDITURES FOR ADVERTISING.
60.14During the fiscal years ending June 30, 2018, and June 30, 2019, an executive branch
60.15agency's spending on advertising and promotions may not exceed 90 percent of the amount
60.16the agency spent on advertising and promotions during the fiscal year ending June 30, 2016.
60.17The commissioner of management and budget must ensure compliance with this limit and
60.18may issue guidelines and policies to executive agencies. The commissioner may forbid an
60.19agency from engaging in advertising as the commissioner determines necessary to ensure
60.20compliance with this section. This section does not apply to the Minnesota Lottery, Explore
60.21Minnesota Tourism, or the Minnesota State Colleges and Universities. Spending during the
60.22biennium ending June 30, 2019, on advertising relating to a declared emergency, an
60.23emergency, or a disaster, as those terms are defined in Minnesota Statutes, section 12.03,
60.24is excluded for purposes of this section.
60.25 Sec. 49. TRANSITION; STATE AUDITOR ENTERPRISE FUND.
60.26Notwithstanding any law to the contrary, receipts received by the state auditor on or
60.27after July 1, 2017, from examinations conducted by the state auditor under Minnesota
60.28Statutes, chapter 6, must be credited to the general fund. Amounts in the state auditor
60.29enterprise fund at the end of fiscal year 2017 are transferred to the general fund.
61.1 Sec. 50. REIMBURSEMENT OF LEGAL COSTS FOR WRIGHT, BECKER, AND
61.2RAMSEY COUNTIES.
61.3The state auditor shall reimburse Wright, Becker, and Ramsey Counties for legal fees
61.4incurred and costs and disbursements made as a result of defending against the state auditor's
61.5lawsuit against them.
61.6 Sec. 51. LIMIT ON INCREASE IN MANAGERIAL COMPENSATION.
61.7(a) Except as provided in paragraph (b), during the biennium ending June 30, 2019, an
61.8employee covered by the managerial plan in Minnesota Statutes, section 43A.18, subdivision
61.93, may not be granted a percentage increase in annual salary that exceeds the lesser of:
61.10(1) the percentage increase in Minnesota median household income, as determined by
61.11the American Community Survey compiled by the United States Bureau of the Census, for
61.12the most recent 12-month period for which data is available; or
61.13(2) the percentage increase in the Consumer Price Index, as determined by the United
61.14States Bureau of Labor Statistics, for the most recent 12-month period for which data is
61.15available.
61.16(b) This section does not apply to an employee whose salary is established according to
61.17Minnesota Statutes, section 15A.083.
61.18 Sec. 52. SALARY LIMIT.
61.19(a) During the fiscal year ending June 30, 2018, the aggregate amount spent by all
61.20executive branch agencies on employee salaries may not exceed 101 percent of the aggregate
61.21amount these agencies spent on employee salaries in the fiscal year ending June 30, 2017.
61.22(b) During the fiscal year ending June 30, 2019, the aggregate amount spent by all
61.23executive branch agencies on employee salaries may not exceed 103 percent of the aggregate
61.24amount these agencies spent on employee salaries in the fiscal year ending June 30, 2017.
61.25(c) For purposes of this section, "executive branch" has the meaning given in Minnesota
61.26Statutes, section 43A.02, subdivision 22, and includes the Minnesota State Colleges and
61.27Universities but not constitutional offices.
61.28 Sec. 53. ICE PALACE ON CAPITOL GROUNDS AUTHORIZED.
61.29 Subdivision 1. Use agreement; terms required. The commissioner of administration
61.30may enter a use agreement with the St. Paul Festival and Heritage Foundation for the
61.31construction, operation, and removal of an ice palace and related temporary structures on
62.1the grounds of the State Capitol complex. If a use agreement for this purpose is entered, the
62.2terms must include the following:
62.3(1) mutually agreed upon beginning and end dates for access to the grounds for
62.4construction, operation, and removal of the ice palace and related temporary structures;
62.5(2) notwithstanding Minnesota Rules, part 7525.0400, an allowance for the St. Paul
62.6Festival and Heritage Foundation to establish fees for admission to the ice palace and for
62.7participation in related activities, and for vendors to sell concessions subject to terms
62.8negotiated in the use agreement. Any fees established must allow a reasonable opportunity
62.9for all Minnesotans, regardless of income, to access the palace and participate in related
62.10activities, and must allow free or discounted admission to members of the military, military
62.11veterans, and their families. A fee may not be charged for general admission to the Capitol
62.12grounds or, to the extent practicable, for access to public memorials and monuments located
62.13on the Capitol grounds;
62.14(3) notwithstanding Minnesota Statutes, section 15B.28, and related rules of the Capitol
62.15Area Architectural and Planning Board, an allowance for the St. Paul Festival and Heritage
62.16Foundation to erect advertising devices promoting the ice palace and its sponsors and donors,
62.17subject to terms negotiated in the use agreement;
62.18(4) a restriction on private events that limit public access to the ice palace or surrounding
62.19Capitol grounds, without prior approval of the commissioner of administration; and
62.20(5) a requirement that, following removal of the ice palace and related temporary
62.21structures, the St. Paul Festival and Heritage Foundation restore the Capitol grounds to the
62.22same condition as existed prior to their construction.
62.23 Subd. 2. Additional terms. In addition to the terms required by subdivision 1, a use
62.24agreement authorized by this section may include additional terms as necessary to preserve
62.25the integrity, dignity, and security of the State Capitol building, the Capitol grounds, and
62.26the surrounding public buildings, memorials, and monuments, and to ensure compliance
62.27with other applicable laws governing commercial activity on public property.
62.28 Subd. 3. Costs, expenses, and liabilities. Unless expressly provided in the use agreement,
62.29any costs or expenses incurred by the state or the city of St. Paul in implementing a use
62.30agreement entered under this section must be paid or reimbursed by the St. Paul Festival
62.31and Heritage Foundation. Notwithstanding Minnesota Statutes, section 3.736, subdivision
62.321, and Minnesota Statutes, section 466.02, the state, the city of St. Paul, and their employees
62.33are not liable for losses incurred during the construction, operation, or removal of an ice
63.1palace or related temporary structures, or losses incurred by a person while visiting the ice
63.2palace or participating in related activities.
63.3EFFECTIVE DATE.This section is effective the day following final enactment.
63.4 Sec. 54. WAITE PARK; HOTEL INSPECTION.
63.5(a) Notwithstanding any other law to the contrary and in addition to any other requirement
63.6in law, the city of Waite Park may adopt an ordinance to require a hotel, motel, or lodging
63.7establishment operating within the city's jurisdiction to have a valid license issued by the
63.8city. The license may prohibit the licensee from:
63.9(1) knowingly allowing a room to be occupied for purposes of sex trafficking;
63.10(2) knowingly allowing a room to be occupied for the purposes of illegal drug activity;
63.11(3) knowingly allowing a room to be occupied by a minor for the consumption of
63.12alcoholic beverages;
63.13(4) prohibiting the inspection of the licensed premises;
63.14(5) failing to report observed or suspected illegal activity to the police in a reasonable
63.15period of time; and
63.16(6) failure to maintain the licensed premises to all building, fire, mechanical, zoning or
63.17licensing codes.
63.18The ordinance may provide for inspections related to the activities the license addresses.
63.19The city may collect a reasonable fee related to the cost of issuing the license and conducting
63.20inspections.
63.21(b) "Hotel," "motel," and "lodging establishment" are as defined in Minnesota Statutes,
63.22section 157.15.
63.23(c) The authority in this section does not replace or diminish the authority of the
63.24community health board to inspect and license any hotel, motel, or lodging establishment
63.25in the city.
63.26EFFECTIVE DATE.This section is effective the day following final enactment without
63.27local approval, as provided in Minnesota Statutes, section 645.023, subdivision 1, paragraph
63.28(a).
64.1 Sec. 55. EYELASH TECHNICIAN GRANDFATHERING.
64.2(a) The board must issue grandfathered eyelash technician licenses no later than February
64.31, 2018, under the conditions in this section.
64.4(b) A complete grandfathering application for an eyelash technician license must be
64.5received in the board office between August 1, 2017, and January 31, 2018, and must contain:
64.6(1) proof of a high school diploma or equivalent;
64.7(2) proof of completion of an eyelash extension training course before July 1, 2017;
64.8(3) proof of completion of a six-hour board-approved public health and safety course
64.9provided by a board-licensed school or a board-recognized professional association organized
64.10under Minnesota Statutes, chapter 317A. Four hours must be related to health, safety, and
64.11infection control and two hours must be related to Minnesota laws and rules governing
64.12cosmetology;
64.13(4) original passing results no more than one year old of board-approved laws and rules
64.14test and theory tests; and
64.15(5) the practitioner fees required under Minnesota Statutes, section 155A.25.
64.16(c) A complete grandfathering application for an eyelash salon manager license must
64.17be received in the board office between August 1, 2017, and January 31, 2018, and must
64.18contain:
64.19(1) proof of a high school diploma or equivalent;
64.20(2) proof of completion of an eyelash extension training course before July 1, 2017;
64.21(3) documentation of at least 2,700 hours of experience performing eyelash extensions
64.22within the last three years;
64.23(4) original passing results no more than one year old of board-approved laws and rules
64.24test and theory tests;
64.25(5) original passing results no more than one year old of board-approved salon manager
64.26test;
64.27(6) proof of a six-hour board-approved public health and safety course provided by a
64.28board-licensed school or a board-recognized professional association organized under
64.29Minnesota Statutes, chapter 317A. Four hours must be related to infection control and two
64.30hours must be related to Minnesota laws and rules; and
64.31(7) the practitioner fees required under Minnesota Statutes, section 155A.25.
65.1(d) Grandfathered licenses must not be expedited under Minnesota Statutes, section
65.2155A.25, subdivision 7. The application timelines under Minnesota Statutes, section 155A.25,
65.3subdivisions 5, 6, and 8, do not apply to grandfathered licenses.
65.4EFFECTIVE DATE.This section is effective the day following final enactment.
65.5 Sec. 56. EYELASH TECHNICIAN RULEMAKING.
65.6The Board of Cosmetologist Examiners shall adopt rules governing the eyelash technician
65.7and salon licenses, which must include scope of practice, the conditions and process of
65.8issuing and renewing the license, requirements related to education and testing, and 14 hours
65.9of training regarding application of eyelash extensions in a board-licensed school. The board
65.10may use the expedited rule process in Minnesota Statutes, section 14.389. The grant of
65.11rulemaking authority under this section expires May 31, 2019.
65.12 Sec. 57. EYELASH TECHNICIAN LICENSING.
65.13The Board of Cosmetologist Examiners must not issue an eyelash practitioner license
65.14before February 1, 2018, except for grandfathered licenses issued under section 55. The
65.15Board of Cosmetologist Examiners must not require a person to have an eyelash practitioner
65.16license for eyelash extensions before February 1, 2018.
65.17 Sec. 58. REPEALER.
65.18 Subdivision 1. State auditor enterprise fund. Minnesota Statutes 2016, section 6.581,
65.19subdivision 1, is repealed.
65.20 Subd. 2. Washington, D.C. office. Minnesota Statutes 2016, section 4.46, is repealed.
65.23 Section 1. Minnesota Statutes 2016, section 15.0596, is amended to read:
65.2415.0596 ADDITIONAL COMPENSATION FROM CONTINGENT FUND
65.25PROHIBITED.
65.26In all cases where the compensation of an officer of the state is fixed by law at a specified
65.27sum, it shall be unlawful for any such officer or employee to receive additional compensation
65.28for the performance of official services out of the contingent fund of the officer or the
65.29department, and it shall be unlawful for the head of any department of the state government
65.30to direct the payment of such additional compensation out of the contingent fund; and the
66.1commissioner of management and budget is hereby prohibited from issuing a
66.2payment upon such contingent fund in payment of such additional compensation.
66.3Every person offending against the provisions of this section shall be guilty of a
66.4misdemeanor.
66.5 Sec. 2. Minnesota Statutes 2016, section 15.191, subdivision 1, is amended to read:
66.6 Subdivision 1. Emergency disbursements. Imprest cash funds for the purpose of making
66.7minor disbursements, providing for change, and providing employees with travel advances
66.8or a portion or all of their payroll
66.9through the payroll system, may be established by state departments or agencies from
66.10existing appropriations in the manner prescribed by this section.
66.11 Sec. 3. Minnesota Statutes 2016, section 15.191, subdivision 3, is amended to read:
66.12 Subd. 3.
66.13established under this section shall be created by
66.14appropriation designated by the commissioner of management and budget.
66.15 Sec. 4. Minnesota Statutes 2016, section 16A.065, is amended to read:
66.1616A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES
66.17DOCUMENTS.
66.18Notwithstanding section
66.19to make advance deposits or payments for software or software maintenance services for
66.20state-owned or leased electronic data processing equipment, for information technology
66.21hosting services, for sole source maintenance agreements where it is not cost-effective to
66.22pay in arrears, for exhibit booth space or boat slip rental when required by the renter to
66.23guarantee the availability of space, for registration fees where advance payment is required
66.24or advance payment discount is provided,
66.25subscription fees, and other costs where advance payment discount is provided or are
66.26customarily paid for in advance. The commissioner may also allow advance deposits by
66.27any department with the Library of Congress and federal Supervisor of Documents for items
66.28to be purchased from those federal agencies.
66.29 Sec. 5. Minnesota Statutes 2016, section 16A.13, subdivision 2a, is amended to read:
66.30 Subd. 2a. Procedure. The commissioner shall see that the deduction for the withheld
66.31tax is made from an employee's pay on the payroll abstract. The commissioner shall approve
67.1one
67.2abstract. Deductions from the pay of an employee paid direct by an agency shall be made
67.3by the employee's payroll authority. A later deduction must correct an error made on an
67.4earlier deduction. The paying authority shall see that a
67.5deductions is promptly sent to the commissioner. The commissioner shall deposit the amount
67.6of the
67.7authorized by federal law to receive it.
67.8 Sec. 6. Minnesota Statutes 2016, section 16A.134, is amended to read:
67.916A.134 CHARITABLE ORGANIZATIONS PAYROLL DEDUCTIONS.
67.10An employee's contribution to a registered combined charitable organization defined in
67.11section
67.12the commissioner shall deduct a requested amount from the pay of the employee for each
67.13pay period. The commissioner shall issue a
67.14organization.
67.15 Sec. 7. Minnesota Statutes 2016, section 16A.15, subdivision 3, is amended to read:
67.16 Subd. 3. Allotment and encumbrance. (a) A payment may not be made without prior
67.17obligation. An obligation may not be incurred against any fund, allotment, or appropriation
67.18unless the commissioner has certified a sufficient unencumbered balance or the accounting
67.19system shows sufficient allotment or encumbrance balance in the fund, allotment, or
67.20appropriation to meet it. The commissioner shall determine when the accounting system
67.21may be used to incur obligations without the commissioner's certification of a sufficient
67.22unencumbered balance. An expenditure or obligation authorized or incurred in violation of
67.23this chapter is invalid and ineligible for payment until made valid. A payment made in
67.24violation of this chapter is illegal. An employee authorizing or making the payment, or
67.25taking part in it, and a person receiving any part of the payment, are jointly and severally
67.26liable to the state for the amount paid or received. If an employee knowingly incurs an
67.27obligation or authorizes or makes an expenditure in violation of this chapter or takes part
67.28in the violation, the violation is just cause for the employee's removal by the appointing
67.29authority or by the governor if an appointing authority other than the governor fails to do
67.30so. In the latter case, the governor shall give notice of the violation and an opportunity to
67.31be heard on it to the employee and to the appointing authority. A claim presented against
67.32an appropriation without prior allotment or encumbrance may be made valid on investigation,
67.33review, and approval by the agency head in accordance with the commissioner's policy, if
68.1the services, materials, or supplies to be paid for were actually furnished in good faith
68.2without collusion and without intent to defraud. The commissioner may then
68.3
68.4(b) The commissioner may approve payment for materials and supplies in excess of the
68.5obligation amount when increases are authorized by section
68.6(c) To minimize potential construction delay claims, an agency with a project funded
68.7by a building appropriation may allow a contractor to proceed with supplemental work
68.8within the limits of the appropriation before money is encumbered. Under this circumstance,
68.9the agency may requisition funds and allow contractors to expeditiously proceed with a
68.10construction sequence. While the contractor is proceeding, the agency shall immediately
68.11act to encumber the required funds.
68.12 Sec. 8. Minnesota Statutes 2016, section 16A.17, subdivision 5, is amended to read:
68.13 Subd. 5. Payroll duties. When the department prepares the payroll for an agency, the
68.14commissioner assumes the agency head's duties to make authorized or required deductions
68.15from, or employer contributions on, the pay of the agency's employees and to prepare and
68.16issue the necessary
68.17 Sec. 9. Minnesota Statutes 2016, section 16A.272, subdivision 3, is amended to read:
68.18 Subd. 3. Section
68.19section
68.20 Sec. 10. Minnesota Statutes 2016, section 16A.40, is amended to read:
68.2116A.40 WARRANTS AND ELECTRONIC FUND TRANSFERS.
68.22Money must not be paid out of the state treasury except upon the warrant of the
68.23commissioner or an electronic fund transfer approved by the commissioner. Warrants must
68.24be drawn on printed blanks that are in numerical order. The commissioner shall enter, in
68.25numerical order in a
68.26every
68.27The commissioner may require payees to supply their bank routing information to enable
68.28the payments to be made through an electronic fund transfer.
69.1 Sec. 11. Minnesota Statutes 2016, section 16A.42, subdivision 2, is amended to read:
69.2 Subd. 2. Approval. If the claim is approved, the commissioner shall
69.3
69.4 Sec. 12. Minnesota Statutes 2016, section 16A.42, subdivision 4, is amended to read:
69.5 Subd. 4. Register. The commissioner shall enter a
69.6payment register as if it were a cash payment.
69.7 Sec. 13. Minnesota Statutes 2016, section 16A.42, is amended by adding a subdivision to
69.8read:
69.9 Subd. 5. Invalid claims. If the commissioner determines that a claim is invalid after
69.10issuing a warrant, the commissioner may void an unpaid warrant. The commissioner is not
69.11liable to any holder who took the void warrant for value.
69.12 Sec. 14. Minnesota Statutes 2016, section 16A.56, is amended to read:
69.1316A.56 COMMISSIONER'S RECEIPT AND CLAIM DUTIES.
69.14The commissioner or a designee shall examine every receipt and claim, and if proper,
69.15approve them, name the account to be charged or credited, and issue
69.16pay claims.
69.17 Sec. 15. Minnesota Statutes 2016, section 16A.671, subdivision 1, is amended to read:
69.18 Subdivision 1. Authority; advisory recommendation. To ensure that cash is available
69.19when needed to
69.20and allotments, the commissioner may (1) issue certificates of indebtedness in anticipation
69.21of the collection of taxes levied for and other revenues appropriated to the general fund for
69.22expenditure during each biennium; and (2) issue additional certificates to refund outstanding
69.23certificates and interest on them, under the Constitution, article XI, section 6.
69.24 Sec. 16. Minnesota Statutes 2016, section 16B.37, subdivision 4, is amended to read:
69.25 Subd. 4. Work of department for another. To avoid duplication and improve efficiency,
69.26the commissioner may direct an agency to do work for another agency or may direct a
69.27division or section of an agency to do work for another division or section within the same
69.28agency and shall require reimbursement for the work. Reimbursements received by an
69.29agency are reappropriated to the account making the original expenditure in accordance
70.1with the transfer
70.2budget.
70.3 Sec. 17. Minnesota Statutes 2016, section 16D.03, subdivision 2, is amended to read:
70.4 Subd. 2. State agency reports. State agencies shall report quarterly to the commissioner
70.5of management and budget the debts owed to them. The commissioner of management and
70.6budget
70.7
70.8reporting
70.9accounting standards, performance measurements, and uniform reporting requirements
70.10applicable to all state agencies. The commissioner of management and budget shall require
70.11a state agency to recognize, track, report, and attempt to collect debts according to the
70.12internal guidelines. The commissioner, in consultation with the commissioner of management
70.13and budget and the attorney general, shall establish internal guidelines for the collection of
70.14debt owed to the state.
70.15 Sec. 18. Minnesota Statutes 2016, section 16D.09, subdivision 1, is amended to read:
70.16 Subdivision 1. Generally. When a debt is determined by a state agency to be
70.17uncollectible, the debt may be written off by the state agency from the state agency's financial
70.18accounting records and no longer recognized as an account receivable for financial reporting
70.19purposes. A debt is considered to be uncollectible when (1) all reasonable collection efforts
70.20have been exhausted, (2) the cost of further collection action will exceed the amount
70.21recoverable, (3) the debt is legally without merit or cannot be substantiated by evidence,
70.22(4) the debtor cannot be located, (5) the available assets or income, current or anticipated,
70.23that may be available for payment of the debt are insufficient, (6) the debt has been
70.24discharged in bankruptcy, (7) the applicable statute of limitations for collection of the debt
70.25has expired, or (8) it is not in the public interest to pursue collection of the debt.
70.26
70.27agency
70.28commissioner of management and budget. The basis for the determination of the
70.29uncollectibility of the debt must be maintained by the state agency. Determining that the
70.30debt is uncollectible does not cancel the legal obligation of the debtor to pay the debt.
70.31 Sec. 19. Minnesota Statutes 2016, section 21.116, is amended to read:
70.3221.116 EXPENSES.
71.1All necessary expenses incurred in carrying out the provisions of sections
71.3or employed by the commissioner, as provided in such sections, together with their necessary
71.4traveling expenses, together with the traveling expenses of the members of the advisory
71.5seed potato certification committee, and other expenses necessary in attending committee
71.6meetings, shall be paid from, and only from, the seed potato inspection account, on order
71.7of the commissioner and commissioner of management and
71.8 Sec. 20. Minnesota Statutes 2016, section 43A.30, subdivision 2, is amended to read:
71.9 Subd. 2. Payroll deduction. If an eligible person who is on any payroll of the state or
71.10an eligible person's dependents is enrolled for any of the optional coverages made available
71.11by the commissioner pursuant to section
71.12budget, upon the person's written order, shall deduct from the salary or wages of the person
71.13those amounts required from time to time to maintain the optional coverages in force, and
71.14issue a
71.15 Sec. 21. Minnesota Statutes 2016, section 43A.49, is amended to read:
71.1643A.49 VOLUNTARY UNPAID LEAVE OF ABSENCE.
71.17(a) Appointing authorities in state government may allow each employee to take unpaid
71.18leaves of absence for up to 1,040 hours in each two-year period beginning July 1 of each
71.19odd-numbered year. Each appointing authority approving such a leave shall allow the
71.20employee to continue accruing vacation and sick leave, be eligible for paid holidays and
71.21insurance benefits, accrue seniority, and accrue service credit and credited salary in retirement
71.22plans as if the employee had actually been employed during the time of leave. An employee
71.23covered by the unclassified plan may voluntarily make the employee contributions to the
71.24unclassified plan during the leave of absence. If the employee makes these contributions,
71.25the appointing authority must make the employer contribution. If the leave of absence is
71.26for one full pay period or longer, any holiday pay shall be included in the first payroll
71.27payment after return from the leave of absence. The appointing authority shall attempt to
71.28grant requests for the unpaid leaves of absence consistent with the need to continue efficient
71.29operation of the agency. However, each appointing authority shall retain discretion to grant
71.30or refuse to grant requests for leaves of absence and to schedule and cancel leaves, subject
71.31to the applicable provisions of collective bargaining agreements and compensation plans.
71.32(b) To receive eligible service credit and credited salary in a defined benefit plan, the
71.33member shall pay an amount equal to the applicable employee contribution rates. If an
72.1employee pays the employee contribution for the period of the leave under this section, the
72.2appointing authority must pay the employer contribution. The appointing authority may, at
72.3its discretion, pay the employee contributions. Contributions must be made in a time and
72.4manner prescribed by the executive director of the applicable retirement system.
72.5 Sec. 22. Minnesota Statutes 2016, section 49.24, subdivision 13, is amended to read:
72.6 Subd. 13. Disposition of unclaimed dividends. Upon the liquidation of any financial
72.7institution liquidated by the commissioner as statutory liquidator, if any dividends or other
72.8moneys set apart for the payment of claims remain unpaid, and the places of residence of
72.9the owners thereof are unknown to the commissioner, the commissioner may pay same into
72.10the state treasury as hereinafter provided. Whenever the commissioner shall be satisfied
72.11that the process of liquidation should not be further continued the commissioner may make
72.12and certify triplicate lists of any such unclaimed dividends or other moneys, specifying the
72.13name of each owner, the amount due, and the last known address. Upon one of such lists,
72.14to be retained by the commissioner shall be endorsed the commissioner's order that such
72.15unclaimed moneys be forthwith deposited in the state treasury. When so deposited, one of
72.16said lists shall be delivered to the commissioner of management and budget and the
72.17commissioner shall retain in the commissioner's office such records and proofs concerning
72.18said claims as the commissioner may have, which shall thereafter remain on file in the
72.19office. The commissioner of management and budget shall execute upon the list retained
72.20by the commissioner a receipt for such money, which shall operate as a full discharge of
72.21the commissioner on account of such claims. At any time within six years after such receipt,
72.22but not afterward, the claimant may apply to the commissioner for the amount so deposited
72.23for the claimant's benefit, and upon proof satisfactory to the governor, the attorney general
72.24and the commissioner, or to a majority of them, they shall give an order to the commissioner
72.25of management and budget to issue a
72.26payment shall thereupon be issued. If no such claim be presented within six years, the
72.27commissioner shall so note upon the commissioner's copy of said list and certify the fact
72.28to the commissioner of management and budget who shall make like entries upon the
72.29commissioner of management and budget's corresponding lists; and all further claims to
72.30said money shall be barred. Provided, that the commissioner of management and budget
72.31shall transfer to the commissioner of commerce's liquidation fund created by this section
72.32not to exceed 50 percent of the amount so turned over by the commissioner, to be used to
72.33partially defray expenses in connection with the liquidation of closed banks and the conduct
72.34of the liquidation division, in such amounts and at such times as the commissioner shall
72.35request.
73.1There is hereby appropriated to the persons entitled to such amounts, from such moneys
73.2in the state treasury not otherwise appropriated, an amount sufficient to make such payment.
73.3 Sec. 23. Minnesota Statutes 2016, section 49.24, subdivision 16, is amended to read:
73.4 Subd. 16. Transfers to liquidation fund. The following moneys shall be transferred to
73.5and deposited in the commissioner of commerce's liquidation fund:
73.6(1) All moneys paid to the commissioner of management and budget by the commissioner
73.7out of funds of any financial institution in the commissioner's hands as reimbursement for
73.8services and expenses pursuant to the provisions of subdivision 7.
73.9(2) All moneys in the possession of the commissioner set aside for the purpose of meeting
73.10unforeseen and contingent expenses incident to the liquidation of closed financial institutions,
73.11which funds have been or shall be hereafter established by withholding portions of final
73.12liquidating dividends in such cases.
73.13(3) All moneys which the commissioner shall request the commissioner of management
73.14and budget to transfer to such fund pursuant to the provisions of subdivision 13.
73.15(4) All moneys in the possession of the commissioner now carried on the commissioner's
73.16books in "stamp account," "suspense account," and "unclaimed deposit account."
73.17(5) All moneys in the possession of the commissioner which the commissioner may be
73.18authorized by order of any district court having jurisdiction of any liquidation proceedings
73.19to transfer to such fund, or to use for any of the purposes for which the fund is established.
73.20(6) All moneys in the possession of the commissioner carried on the commissioner's
73.21books in the "unclaimed bonds account." At any time within six years after any bond the
73.22proceeds of the sale of which constitute a portion of the moneys in this paragraph referred
73.23to came into the possession of the commissioner as liquidator of any financial institution,
73.24any claimant thereto may apply to the commissioner for the proceeds of the sale of such
73.25bond, and, upon proof satisfactory to the governor, the attorney general, and the
73.26commissioner, or a majority of them, they shall give an order to the commissioner of
73.27management and budget to issue a
73.28such
73.29commissioner of commerce's liquidation fund. If no such claim be presented within such
73.30period, all further claims to the proceeds of any such bond shall be barred.
73.31(7) All sums which the commissioner may receive from the sale of personal property of
73.32liquidated financial institutions where the final dividend has been paid and no disposition
73.33of said property made by any order of the court, and the proceeds of sales of any personal
74.1property used by the liquidation division which have been purchased with funds of financial
74.2institutions in liquidation.
74.3 Sec. 24. Minnesota Statutes 2016, section 69.031, subdivision 1, is amended to read:
74.4 Subdivision 1. Commissioner's
74.5and budget shall issue to the Public Employees Retirement Association on behalf of a
74.6municipality or independent nonprofit firefighting corporation that is a member of the
74.7voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, to
74.8the Department of Natural Resources, the Department of Public Safety, or the county,
74.9municipality, or independent nonprofit firefighting corporation certified to the commissioner
74.10of management and budget by the commissioner a
74.11to the amount of fire state aid or police state aid, whichever applies, certified for the
74.12applicable state aid recipient by the commissioner under section
74.13(b) Fire state aid and police state aid is payable on October 1 annually. The amount of
74.14state aid due and not paid by October 1 accrues interest payable to the state aid recipient at
74.15the rate of one percent for each month or part of a month that the amount remains unpaid
74.16after October 1.
74.17 Sec. 25. Minnesota Statutes 2016, section 80A.65, subdivision 9, is amended to read:
74.18 Subd. 9. Generally. No filing for which a fee is required shall be deemed to be filed or
74.19given any effect until the proper fee is paid. All fees and charges collected by the
74.20administrator shall be covered into the state treasury. When any person is entitled to a refund
74.21under this section, the administrator shall certify to the commissioner of management and
74.22budget the amount of the fee to be refunded to the applicant, and the commissioner of
74.23management and budget shall issue a
74.24such fee was credited in the manner provided by law. There is hereby appropriated to the
74.25person entitled to such refunds from the fund in the state treasury to which such fees were
74.26credited an amount to make such refunds and payments.
74.27 Sec. 26. Minnesota Statutes 2016, section 84A.23, subdivision 4, is amended to read:
74.28 Subd. 4. Drainage ditch bonds; reports. (a) Immediately after a project is approved
74.29and accepted and then after each distribution of the tax collections on the June and November
74.30tax settlements, the county auditor shall certify to the commissioner of management and
74.31budget the following information relating to bonds issued to finance or refinance public
75.1drainage ditches wholly or partly within the projects, and the collection of assessments
75.2levied on account of the ditches:
75.3(1) the amount of principal and interest to become due on the bonds before the next tax
75.4settlement and distribution;
75.5(2) the amount of money collected from the drainage assessments and credited to the
75.6funds of the ditches; and
75.7(3) the amount of the deficit in the ditch fund of the county chargeable to the ditches.
75.8(b) On approving the certificate, the commissioner of management and budget shall
75.9
75.10amount of the deficit in favor of the county.
75.11(c) As to public drainage ditches wholly within a project, the amount of money paid to
75.12or for the benefit of the county under paragraph (b) must never exceed the principal and
75.13interest of the bonds issued to finance or refinance the ditches outstanding at the time of
75.14the passage and approval of sections
75.15ditch fund to the credit of the ditches. The liabilities must be reduced from time to time by
75.16the amount of all payments of assessments after April 25, 1931, made by the owners of
75.17lands assessed before that date for benefits on account of the ditches.
75.18(d) As to public drainage ditches partly within and partly outside a project, the amount
75.19paid from the fund pertaining to the project to or for the benefit of the county must never
75.20exceed a certain percentage of bonds issued to finance and refinance the ditches so
75.21outstanding, less money on hand in the county ditch fund to the credit of the ditches on
75.22April 25, 1931. The percentage must bear the same proportion to the whole amount of these
75.23bonds as the original benefits assessed against lands within the project bear to the original
75.24total benefits assessed to the entire system of the ditches. This liability shall be reduced
75.25from time to time by the payments of all assessments extended after April 25, 1931, made
75.26by the owners of lands within the project of assessments for benefits assessed before that
75.27date on account of a ditch.
75.28(e) The commissioner of management and budget may provide and prescribe forms for
75.29reports required by sections
75.30county officials that the commissioner of management and budget considers necessary for
75.31the proper administration of sections
76.1 Sec. 27. Minnesota Statutes 2016, section 84A.33, subdivision 4, is amended to read:
76.2 Subd. 4. Ditch bonds; funds; payments to counties. (a) Upon the approval and
76.3acceptance of a project and after each distribution of the tax collections for the June and
76.4November tax settlements, the county auditor shall certify to the commissioner of
76.5management and budget the following information about bonds issued to finance or refinance
76.6public drainage ditches wholly or partly within the projects, and the collection of assessments
76.7levied for the ditches:
76.8(1) the amount of principal and interest to become due on the bonds before the next tax
76.9settlement and distribution;
76.10(2) the amount of money collected from the drainage assessments and credited to the
76.11funds of the ditches, not already sent to the commissioner of management and budget as
76.12provided in sections
76.13(3) the amount of the deficit in the ditch fund of the county chargeable to the ditches.
76.14(b) On approving this certificate of the county auditor, the commissioner of management
76.15and budget shall
76.16sections
76.17must be credited to the proper ditch of the county and placed in the ditch bond fund of the
76.18county, which is created, and used only to pay the ditch bonded indebtedness of the county
76.19assumed by the state under sections
76.20payments issued must not exceed in any one year the total amount of the deficit provided
76.21for under this section.
76.22(c) The state is subrogated to all title, right, interest, or lien of the county in or on the
76.23lands so certified within these projects.
76.24(d) As to public drainage ditches wholly within a project, the amount paid to, or for the
76.25benefit of, the county under this subdivision must never exceed the principal and interest
76.26of the bonds issued to finance or refinance a ditch outstanding on April 22, 1933, less money
76.27on hand in the county ditch fund to the credit of a ditch. These liabilities must be reduced
76.28from time to time by the amount of any payments of assessments extended after April 22,
76.291933, made by the owners of lands assessed before that date for benefits on account of the
76.30ditches.
76.31As to public drainage ditches partly within and partly outside a project the amount paid
76.32from the fund pertaining to the project to or for the benefit of the county must never exceed
76.33a certain percentage of bonds issued to finance and refinance a ditch so outstanding, less
77.1money on hand in the county ditch fund to the credit of a ditch on April 22, 1932. The
77.2percentage must bear the same proportion to the whole amount of the bonds as the original
77.3benefits assessed against these lands within the project bear to the original total benefits
77.4assessed to the entire system for a ditch. This liability must be reduced from time to time
77.5by the payments of all assessments extended after April 22, 1933, made by the owners of
77.6lands within the project of assessments for benefits assessed before that date on account of
77.7a ditch.
77.8 Sec. 28. Minnesota Statutes 2016, section 84A.40, is amended to read:
77.984A.40 COUNTY MAY ASSUME BONDS.
77.10Any county where a project or portion of it is located may voluntarily assume, in the
77.11manner specified in this section, the obligation to pay a portion of the principal and interest
77.12of the bonds issued before the approval and acceptance of the project and remaining unpaid
77.13at maturity, of any school district or town in the county and wholly or partly within the
77.14project. The portion must bear the same proportion to the whole of the unpaid principal and
77.15interest as the last net tax capacity, before the acceptance of the project, of lands then
77.16acquired by the state under sections
77.17to the total net tax capacity for the same year of the school district or town. This assumption
77.18must be evidenced by a resolution of the county board of the county. A copy of the resolution
77.19must be certified to the commissioner of management and budget within one year after the
77.20acceptance of the project.
77.21Later, if any of the bonds remains unpaid at maturity, the county board shall, upon
77.22demand of the governing body of the school district or town or of a bondholder, provide
77.23for the payment of the portion assumed. The county shall levy general taxes on all the taxable
77.24property of the county for that purpose, or issue its bonds to raise the sum needed, conforming
77.25to law respecting the issuance of county refunding bonds. The proceeds of taxes or bonds
77.26must be paid by the county treasurer to the treasurer of the school district or town. No
77.27payments shall be made by the county to the school district or town until the money in the
77.28treasury of the school district or town, together with the money to be paid by the county, is
77.29sufficient to pay in full each of the bonds as it becomes due.
77.30If a county fails to adopt and certify the resolution, the commissioner of management
77.31and budget shall withhold from the payments to be made to the county under section
77.32a sum equal to that portion of the principal and interest of the outstanding bonds that bears
77.33the same proportion to the whole of the bonds as the above determined net tax capacity of
77.34lands acquired by the state within the project bears to the total net tax capacity for the same
78.1year of the school district or town. Money withheld from the county must be set aside in
78.2the state treasury and not paid to the county until the full principal and interest of the school
78.3district and town bonds have been paid.
78.4If any bonds remain unpaid at maturity, upon the demand of the governing body of the
78.5school district or town, or a bondholder, the commissioner of management and budget shall
78.6issue to the treasurer of the school district or town a
78.7past due principal and interest computed as in the case of the county's liability authorized
78.8in this section to be voluntarily assumed. Money received by a school district or town under
78.9this section must be applied to the payment of past-due bonds and interest.
78.10 Sec. 29. Minnesota Statutes 2016, section 84A.52, is amended to read:
78.1184A.52 ACCOUNTS; EXAMINATION, APPROPRIATION, PAYMENT.
78.12As a part of the examination provided for by section
78.13counties within a game preserve, area, or project established under section
78.14or
78.15and disbursement of money collected or disbursed under this chapter or from the sale of
78.16tax-forfeited lands held by the state under section
78.17shall also include in the reports required by section
78.18December 31 before the examination that set forth the proportionate amount of principal
78.19and interest due from the state to the individual county and any money due the state from
78.20the county remaining unpaid under this chapter, or from the sale of any tax-forfeited lands
78.21referred to in this section, and other information required by the commissioner of management
78.22and budget. On receiving a report, the commissioner of management and budget shall
78.23determine the net amount due to the county for the period covered by the report and shall
78.24
78.25for that amount. It must be paid to and received by the county as payment in full of all
78.26amounts due for the period stated on the
78.27provision of this chapter.
78.28Money to
78.29to payment from the consolidated fund in the state treasury.
78.30 Sec. 30. Minnesota Statutes 2016, section 88.12, subdivision 1, is amended to read:
78.31 Subdivision 1. Limitation. The compensation and expenses of persons temporarily
78.32employed in emergencies in suppression or control of wildfires shall be fixed by the
78.33commissioner of natural resources or an authorized agent and paid as provided by law. Such
79.1compensation shall not exceed the maximum rate for comparable labor established as
79.2provided by law or rules, but shall not be subject to any minimum rate so established. The
79.3commissioner is authorized to draw and expend from money appropriated for the purposes
79.4of sections
79.5agent be used in paying emergency expenses, including just compensation for services
79.6rendered by persons summoned and for private property used, damaged, or appropriated
79.7under sections
79.8to
79.9The commissioner or agent in charge shall take proper subvouchers or receipts from all
79.10persons to whom these moneys are paid, and after these subvouchers have been approved
79.11they shall be filed with the commissioner of management and budget. Authorized funds as
79.12herein provided at any time shall be deposited, subject to withdrawal or disbursement by
79.13check or otherwise for the purposes herein prescribed, in a bank authorized and bonded to
79.14receive state deposits; and the bond of this bank to the state shall cover and include this
79.15deposit.
79.16 Sec. 31. Minnesota Statutes 2016, section 94.522, is amended to read:
79.1794.522 TRANSMISSION OF
79.18TREASURERS; USE OF PROCEEDS.
79.19It shall be the duty of the commissioner of management and budget to transmit
79.20
79.21the sums that may be due in accordance with section
79.22appropriated out of the state treasury from the amounts received from the United States
79.23government pursuant to the aforesaid acts of Congress, and such money shall be used by
79.24the counties receiving the same for the purposes and in the proportions herein provided.
79.25 Sec. 32. Minnesota Statutes 2016, section 94.53, is amended to read:
79.2694.53
79.27TO COUNTIES.
79.28It shall be the duty of the commissioner of management and budget to transmit
79.29
79.30the sum that may be due in accordance with sections
79.31are hereby appropriated out of the state treasury from the amounts received from the United
79.32States government pursuant to the aforesaid act of Congress. The commissioner of
79.33management and budget, upon being notified by the federal government or any agencies
80.1thereof that a loan has been made to any such county the repayment of which is to be made
80.2from such fund, is authorized to transmit a
80.3government or any agency thereof sufficient to repay such loan out of any money apportioned
80.4or due to such county under the provisions of such act of Congress, approved May 23, 1908
80.5(Statutes at Large, volume 35, page 260).
80.6 Sec. 33. Minnesota Statutes 2016, section 116J.64, subdivision 7, is amended to read:
80.7 Subd. 7. Processing. (a) An Indian desiring a loan for the purpose of starting a business
80.8enterprise or expanding an existing business shall make application to the appropriate tribal
80.9government. The application shall be forwarded to the appropriate eligible organization, if
80.10it is participating in the program, for consideration in conformity with the plans submitted
80.11by said tribal governments. The tribal government may approve the application if it
80.12determines that the loan would advance the goals of the Indian business loan program. If
80.13the tribal government is not participating in the program, the agency may directly approve
80.14or deny the loan application.
80.15(b) If the application is approved, the tribal government shall forward the application,
80.16together with all relevant documents pertinent thereto, to the commissioner of the agency,
80.17who shall
80.18or the applicable tribal government,
80.19appropriate notations identifying the borrower.
80.20(c) The tribal government, eligible organization, or the agency, if it is administering the
80.21loan, shall maintain records of transactions for each borrower in a manner consistent with
80.22good accounting practice. The interest rate on a loan shall be established by the tribal
80.23government or the agency, but may be no less than two percent per annum nor more than
80.24ten percent per annum. When any portion of a debt is repaid, the tribal government, eligible
80.25organization, or the agency, if it is administering the loan, shall remit the amount so received
80.26plus interest paid thereon to the commissioner of management and budget through the
80.27agency. The amount so received shall be credited to the Indian business loan account.
80.28(d) On the placing of a loan, additional money equal to ten percent of the total amount
80.29made available to any tribal government, eligible organization, or the agency, if it is
80.30administering the loan, for loans during the fiscal year shall be paid to the tribal government,
80.31eligible organization, or the agency, prior to December 31 for the purpose of financing
80.32administrative costs.
81.1 Sec. 34. Minnesota Statutes 2016, section 126C.55, subdivision 2, is amended to read:
81.2 Subd. 2. Notifications; payment; appropriation. (a) If a school district or intermediate
81.3school district believes that it may be unable to make a principal or interest payment on any
81.4outstanding debt obligation on the date that payment is due, it must notify the commissioner
81.5as soon as possible, but not less than 15 working days before the date that principal or
81.6interest payment is due. The notice must include the name of the school district or
81.7intermediate school district, an identification of the debt obligation issue in question, the
81.8date the payment is due, the amount of principal and interest due on the payment date, the
81.9amount of principal or interest that the school district or intermediate school district will be
81.10unable to repay on that date, the paying agent for the debt obligation, the wire transfer
81.11instructions to transfer funds to that paying agent, and an indication as to whether a payment
81.12is being requested by the school district or intermediate school district under this section.
81.13If a paying agent becomes aware of a potential default, it shall inform the commissioner of
81.14that fact. After receipt of a notice which requests a payment under this section, after
81.15consultation with the school district or intermediate school district and the paying agent,
81.16and after verification of the accuracy of the information provided, the commissioner shall
81.17notify the commissioner of management and budget of the potential default. The notice
81.18must include a final figure as to the amount due that the school district or intermediate
81.19school district will be unable to repay on the date due.
81.20 (b) Except as provided in subdivision 9, upon receipt of this notice from the
81.21commissioner, the commissioner of management and budget shall issue a
81.22and authorize the commissioner of education to pay to the paying agent for the debt obligation
81.23the specified amount on or before the date due. The amounts needed for the purposes of
81.24this subdivision are annually appropriated to the department from the state general fund.
81.25 (c) The Departments of Education and Management and Budget must jointly develop
81.26detailed procedures for school districts and intermediate school districts to notify the state
81.27that they have obligated themselves to be bound by the provisions of this section, procedures
81.28for school districts or intermediate school districts and paying agents to notify the state of
81.29potential defaults and to request state payment under this section, and procedures for the
81.30state to expedite payments to prevent defaults. The procedures are not subject to chapter
81.3114.
81.32 Sec. 35. Minnesota Statutes 2016, section 126C.55, subdivision 9, is amended to read:
81.33 Subd. 9. State bond rating. If the commissioner of management and budget determines
81.34that the credit rating of the state would be adversely affected thereby, the commissioner of
82.1management and budget shall not issue
82.2payment of principal or interest on any debt obligations for which a district did not, prior
82.3to their issuance, obligate itself to be bound by the provisions of this section.
82.4 Sec. 36. Minnesota Statutes 2016, section 126C.68, subdivision 3, is amended to read:
82.5 Subd. 3.
82.6has been so received a
82.7effort school loan fund, payable on presentation to the commissioner of management and
82.8budget out of any money in such account. The
82.9commissioner in sufficient time to coincide with the next date on which the district is
82.10obligated to make principal or interest payments on its bonded debt in the ensuing year.
82.11Interest must accrue from the date such
82.12must be used by the district to pay principal or interest on its bonded debt falling due in the
82.13ensuing year.
82.14 Sec. 37. Minnesota Statutes 2016, section 126C.69, subdivision 14, is amended to read:
82.15 Subd. 14. Participation by county auditor; record of contract; payment of loan. The
82.16district must file a copy of the capital loan contract with the county auditor of each county
82.17in which any part of the district is situated. The county auditor shall enter the capital loan,
82.18evidenced by the contract, in the auditor's bond register. The commissioner shall keep a
82.19record of each capital loan and contract showing the name and address of the district, the
82.20date of the contract, and the amount of the loan initially approved. On receipt of the resolution
82.21required in subdivision 12, the commissioner shall issue
82.22dispersed in accordance with the schedule in the contract, on the capital loan account for
82.23the amount that may be disbursed under subdivision 1. Interest on each disbursement of the
82.24capital loan amount accrues from the date on which the commissioner of management and
82.25budget issues the
82.26 Sec. 38. Minnesota Statutes 2016, section 127A.34, subdivision 1, is amended to read:
82.27 Subdivision 1. Copy to commissioner of management and budget; appropriation.
82.28The commissioner shall furnish a copy of the apportionment of the school endowment fund
82.29to the commissioner of management and budget, who thereupon shall
82.30issue payments from the state treasury, payable to the several districts, for the amount due
82.31each district. There is hereby annually appropriated from the school endowment fund the
82.32amount of such apportionments.
83.1 Sec. 39. Minnesota Statutes 2016, section 127A.40, is amended to read:
83.2127A.40 MANNER OF PAYMENT OF STATE AIDS.
83.3It shall be the duty of the commissioner to deliver to the commissioner of management
83.4and budget a certificate for each district entitled to receive state aid under the provisions of
83.5this chapter. Upon the receipt of such certificate, it shall be the duty of the commissioner
83.6of management and budget to
83.7the amount shown by each certificate to be due to the district. The commissioner of
83.8management and budget shall transmit such
83.9a copy of the certificate prepared by the commissioner.
83.10 Sec. 40. Minnesota Statutes 2016, section 136F.46, subdivision 1, is amended to read:
83.11 Subdivision 1. Request;
83.12budget, upon the written request of an employee of the board, may deduct from an employee's
83.13salary or wages the amount requested for payment to a nonprofit state college or university
83.14foundation meeting the requirements in subdivision 2. The commissioner shall issue a
83.15
83.16and the Nellie Stone Johnson Scholarship Program of the Minnesota State University Student
83.17Association shall be considered nonprofit state college and university foundations for
83.18purposes of this section.
83.19 Sec. 41. Minnesota Statutes 2016, section 136F.70, subdivision 3, is amended to read:
83.20 Subd. 3. Refunds. The board may make refunds to students for tuition, activity fees,
83.21union fees, and any other fees from imprest cash funds. The imprest cash fund shall be
83.22reimbursed periodically by
83.23and accounts to which the refund should ultimately be charged. The amounts necessary to
83.24pay the refunds are appropriated from the funds and accounts to which they are charged.
83.25 Sec. 42. Minnesota Statutes 2016, section 162.08, subdivision 10, is amended to read:
83.26 Subd. 10. Project approval, reports. When the county board of any county determines
83.27to do any construction work on a county state-aid highway or other road eligible for the
83.28expenditure of state aid funds within the county, and desires to expend on such work a
83.29portion of the money apportioned or allocated to it out of the county state-aid highway fund,
83.30the county shall first obtain approval of the project by the commissioner. Thereafter the
83.31county engineer shall make such reports in such manner as the commissioner requires under
83.32rules of the commissioner. Upon receipt of satisfactory reports, the commissioner shall
84.1certify to the commissioner of management and budget the amount of money that is eligible
84.2to be paid from the county's apportionment or allocation for the work under contract or
84.3actually completed. The commissioner of management and budget shall thereupon issue a
84.4
84.5payment with all other
84.6allocated to the county.
84.7 Sec. 43. Minnesota Statutes 2016, section 162.08, subdivision 11, is amended to read:
84.8 Subd. 11. Certification required to issue
84.9management and budget shall not issue any
84.10the commissioner.
84.11 Sec. 44. Minnesota Statutes 2016, section 162.14, subdivision 4, is amended to read:
84.12 Subd. 4. Project approval and reports. When the governing body of any such city
84.13determines to do any construction work on any municipal state-aid street or other streets
84.14within the city upon which money apportioned out of the municipal state-aid street fund
84.15may be used as provided in subdivision 2, the governing body shall first obtain the approval
84.16of the commissioner. Thereafter, the engineer of the city shall make reports in such manner
84.17as the commissioner requires in accordance with the commissioner's rules. Upon receipt of
84.18satisfactory reports the commissioner shall certify to the commissioner of management and
84.19budget the amount of money that is eligible to be paid from the city's apportionment for the
84.20work under contract or actually completed. The commissioner of management and budget
84.21shall thereupon issue a
84.22city. In no event shall the
84.23the amount apportioned to the city.
84.24 Sec. 45. Minnesota Statutes 2016, section 162.14, subdivision 5, is amended to read:
84.25 Subd. 5. Certification required to issue
84.26management and budget shall not issue any
84.274 without the prior certification of the commissioner.
84.28 Sec. 46. Minnesota Statutes 2016, section 162.18, subdivision 4, is amended to read:
84.29 Subd. 4. Certification to commissioner of money required. Any municipality issuing
84.30and selling bonds pursuant to this section shall certify to the commissioner the amount of
84.31money required annually for the payment of principal and interest on the obligation. Upon
85.1receipt thereof, the commissioner shall certify to the commissioner of management and
85.2budget the sum of money needed annually by the municipality for the principal and interest,
85.3provided that the amount certified by the commissioner shall not exceed the limit heretofore
85.4specified. The commissioner of management and budget shall thereafter, until said bonds
85.5are retired, issue a
85.6officer of the municipality, and the amount thereof shall be deposited by the fiscal officer
85.7in the sinking fund from which the obligations are payable.
85.8 Sec. 47. Minnesota Statutes 2016, section 162.181, subdivision 4, is amended to read:
85.9 Subd. 4. Certification to commissioner of money required. Any county issuing and
85.10selling bonds pursuant to this section shall certify to the commissioner the amount of money
85.11required annually for the payment of principal and interest on the obligation. Upon receipt
85.12thereof, the commissioner shall certify to the commissioner of management and budget the
85.13sum of money needed annually by the county for the principal and interest, provided that
85.14the amount certified by the commissioner shall not exceed the limit heretofore specified.
85.15The commissioner of management and budget shall thereafter, until said bonds are retired,
85.16issue a
85.17the county, and the amount thereof shall be deposited by the county treasurer in the sinking
85.18fund from which the obligations are payable.
85.19 Sec. 48. Minnesota Statutes 2016, section 163.051, subdivision 3, is amended to read:
85.20 Subd. 3. Distribution to county; appropriation. On a monthly basis, the registrar of
85.21motor vehicles shall issue a
85.22which the registrar has collected a wheelage tax in the amount of such tax then on hand in
85.23the county wheelage tax account. There is hereby appropriated from the county wheelage
85.24tax account each year, to each county entitled to payments authorized by this section,
85.25sufficient moneys to make such payments.
85.26 Sec. 49. Minnesota Statutes 2016, section 176.181, subdivision 2, is amended to read:
85.27 Subd. 2. Compulsory insurance; self-insurers. (a) Every employer, except the state
85.28and its municipal subdivisions, liable under this chapter to pay compensation shall insure
85.29payment of compensation with some insurance carrier authorized to insure workers'
85.30compensation liability in this state, or obtain a written order from the commissioner of
85.31commerce exempting the employer from insuring liability for compensation and permitting
85.32self-insurance of the liability. The terms, conditions and requirements governing
85.33self-insurance shall be established by the commissioner pursuant to chapter 14. The
86.1commissioner of commerce shall also adopt, pursuant to paragraph (d), rules permitting
86.2two or more employers, whether or not they are in the same industry, to enter into agreements
86.3to pool their liabilities under this chapter for the purpose of qualifying as group self-insurers.
86.4With the approval of the commissioner of commerce, any employer may exclude medical,
86.5chiropractic and hospital benefits as required by this chapter. An employer conducting
86.6distinct operations at different locations may either insure or self-insure the other portion
86.7of operations as a distinct and separate risk. An employer desiring to be exempted from
86.8insuring liability for compensation shall make application to the commissioner of commerce,
86.9showing financial ability to pay the compensation, whereupon by written order the
86.10commissioner of commerce, on deeming it proper, may make an exemption. An employer
86.11may establish financial ability to pay compensation by providing financial statements of
86.12the employer to the commissioner of commerce. Upon ten days' written notice the
86.13commissioner of commerce may revoke the order granting an exemption, in which event
86.14the employer shall immediately insure the liability. As a condition for the granting of an
86.15exemption the commissioner of commerce may require the employer to furnish security the
86.16commissioner of commerce considers sufficient to insure payment of all claims under this
86.17chapter, consistent with subdivision 2b. If the required security is in the form of currency
86.18or negotiable bonds, the commissioner of commerce shall deposit it with the commissioner
86.19of management and budget. In the event of any default upon the part of a self-insurer to
86.20abide by any final order or decision of the commissioner of labor and industry directing and
86.21awarding payment of compensation and benefits to any employee or the dependents of any
86.22deceased employee, then upon at least ten days' notice to the self-insurer, the commissioner
86.23of commerce may by written order to the commissioner of management and budget require
86.24the commissioner of management and budget to sell the pledged and assigned securities or
86.25a part thereof necessary to pay the full amount of any such claim or award with interest
86.26thereon. This authority to sell may be exercised from time to time to satisfy any order or
86.27award of the commissioner of labor and industry or any judgment obtained thereon. When
86.28securities are sold the money obtained shall be deposited in the state treasury to the credit
86.29of the commissioner of commerce and awards made against any such self-insurer by the
86.30commissioner of commerce shall be paid to the persons entitled thereto by the commissioner
86.31of management and budget upon
86.32of commerce out of the proceeds of the sale of securities. Where the security is in the form
86.33of a surety bond or personal guaranty the commissioner of commerce, at any time, upon at
86.34least ten days' notice and opportunity to be heard, may require the surety to pay the amount
86.35of the award, the payments to be enforced in like manner as the award may be enforced.
87.1(b) No association, corporation, partnership, sole proprietorship, trust or other business
87.2entity shall provide services in the design, establishment or administration of a group
87.3self-insurance plan under rules adopted pursuant to this subdivision unless it is licensed, or
87.4exempt from licensure, pursuant to section
87.5commissioner of commerce. An applicant for a license shall state in writing the type of
87.6activities it seeks authorization to engage in and the type of services it seeks authorization
87.7to provide. The license shall be granted only when the commissioner of commerce is satisfied
87.8that the entity possesses the necessary organization, background, expertise, and financial
87.9integrity to supply the services sought to be offered. The commissioner of commerce may
87.10issue a license subject to restrictions or limitations, including restrictions or limitations on
87.11the type of services which may be supplied or the activities which may be engaged in. The
87.12license is for a two-year period.
87.13(c) To assure that group self-insurance plans are financially solvent, administered in a
87.14fair and capable fashion, and able to process claims and pay benefits in a prompt, fair and
87.15equitable manner, entities licensed to engage in such business are subject to supervision
87.16and examination by the commissioner of commerce.
87.17(d) To carry out the purposes of this subdivision, the commissioner of commerce may
87.18promulgate administrative rules pursuant to sections
87.19(1) establish reporting requirements for administrators of group self-insurance plans;
87.20(2) establish standards and guidelines consistent with subdivision 2b to assure the
87.21adequacy of the financing and administration of group self-insurance plans;
87.22(3) establish bonding requirements or other provisions assuring the financial integrity
87.23of entities administering group self-insurance plans;
87.24(4) establish standards, including but not limited to minimum terms of membership in
87.25self-insurance plans, as necessary to provide stability for those plans;
87.26(5) establish standards or guidelines governing the formation, operation, administration,
87.27and dissolution of self-insurance plans; and
87.28(6) establish other reasonable requirements to further the purposes of this subdivision.
87.29 Sec. 50. Minnesota Statutes 2016, section 176.581, is amended to read:
87.30176.581 PAYMENT TO STATE EMPLOYEES.
87.31Upon a
87.32accordance with the terms of the order awarding compensation, the commissioner of
88.1management and budget shall pay compensation to the employee or the employee's
88.2dependent. These payments shall be made from money appropriated for this purpose.
88.3 Sec. 51. Minnesota Statutes 2016, section 176.591, subdivision 3, is amended to read:
88.4 Subd. 3. Compensation payments upon
88.5management and budget shall make compensation payments from the fund only as authorized
88.6by this chapter upon
88.7 Sec. 52. Minnesota Statutes 2016, section 192.55, is amended to read:
88.8192.55 PAYMENTS TO BE MADE THROUGH ADJUTANT GENERAL.
88.9All pay and allowances and necessary expenses for any of the military forces shall, when
88.10approved by the adjutant general, be paid by the commissioner of management and
88.11
88.12that upon the request of the adjutant general, approved by the governor, the sum required
88.13for any such pay or allowances and necessary expenses shall be paid by the commissioner
88.14of management and
88.15pay and distribute the same to the several officers or enlisted members entitled thereto or
88.16to their commanding officers or to a finance officer designated by the adjutant general. The
88.17receipt of any such commanding officer or finance officer for any such payment shall
88.18discharge the adjutant general from liability therefor. Every commanding officer or finance
88.19officer receiving any such payment shall, as soon as practicable, pay and distribute the same
88.20to the several officers or enlisted members entitled thereto. The officer making final payment
88.21shall, as evidence thereof, secure the signature of the person receiving the same upon a
88.22payroll or other proper voucher.
88.23 Sec. 53. Minnesota Statutes 2016, section 196.052, is amended to read:
88.24196.052 GIFT ACCEPTANCE AND INVESTMENT.
88.25On the behalf of the state, the commissioner may accept any gift, grant, bequest, or
88.26devise made for the purposes of this chapter and chapter 197. The commissioner must
88.27administer the funds as directed by the donor. All funds must be deposited in the state
88.28treasury and credited to the veterans affairs endowment, bequest, and devises fund. The
88.29balance of the fund is annually appropriated to the commissioner of veterans affairs to
88.30accomplish the purposes of this chapter and chapter 197. Funds received by the commissioner
88.31under this section in excess of current needs must be invested by the State Board of
88.32Investment in accordance with section
89.1the manner provided for the issuance of other state
89.2may refuse to accept any gift, grant, bequest, or devise if acceptance would not be in the
89.3best interest of the state or Minnesota's veterans.
89.4 Sec. 54. Minnesota Statutes 2016, section 198.16, is amended to read:
89.5198.16 PLANNED GIVING.
89.6The commissioner is authorized to accept on behalf of the state any gift, grant, bequest,
89.7or devise made for the purposes of this chapter, and administer the same as directed by the
89.8donor. All proceeds therefrom including money derived from the sale of any real or personal
89.9property must be deposited in the state treasury, invested by the State Board of Investment
89.10in accordance with sections
89.11home endowment, bequest, and devises fund. That fund consists of separate accounts for
89.12investing general and restricted gifts, money, and donations received and for any currently
89.13expendable proceeds.
89.14The commissioner shall maintain records of all gifts received, clearly showing the identity
89.15of the donor, the purpose of the donation, and the ultimate disposition of the donation. Each
89.16donation must be duly receipted and must be expended or used by the commissioner as
89.17nearly in accordance with the condition of the gift or donation as is compatible with the
89.18best interests of the residents of the homes. Money in the fund is appropriated to the
89.19commissioner for the purposes for which it was received. Disbursements from this fund
89.20shall be made in the manner provided for the issuance of other state
89.21Whenever the commissioner shall deem it advisable, in accordance with law, to sell or
89.22otherwise dispose of any real or personal property thus acquired, the commissioner of
89.23administration upon the request of the commissioner shall sell or otherwise dispose of said
89.24property in the manner provided by law for the sale or disposition of other state property
89.25by the commissioner of administration.
89.26 Sec. 55. Minnesota Statutes 2016, section 237.30, is amended to read:
89.27237.30 TELEPHONE INVESTIGATION FUND; APPROPRIATION.
89.28A Minnesota Telephone Investigation Fund shall exist for the use of the Department of
89.29Commerce and of the attorney general in investigations, valuations, and revaluations under
89.30section
89.31for its expenses pursuant to section
89.32be deposited in a separate bank account and not commingled with any other state funds or
90.1moneys, but any balance in excess of $25,000 in the revolving fund at the end of each fiscal
90.2year shall be paid into the state treasury and credited to the general fund. All subsequent
90.3credits to said revolving fund shall be paid
90.4management and budget upon application of the department or of the attorney general to
90.5an aggregate amount of not more than one-half of such sums to each of them, which
90.6proportion shall be constantly maintained in all credits and withdrawals from the revolving
90.7fund.
90.8 Sec. 56. Minnesota Statutes 2016, section 241.13, subdivision 1, is amended to read:
90.9 Subdivision 1. Contingent account. The commissioner of corrections may permit a
90.10contingent account to remain in the hands of the accounting officer of any such institution
90.11from which expenditures may be made in case of actual emergency requiring immediate
90.12payment to prevent loss or danger to the institution or its inmates and for the purpose of
90.13paying freight, purchasing produce, livestock and other commodities requiring a cash
90.14settlement, and for the purpose of discounting bills incurred, but in all cases subject to
90.15revision by the commissioner of corrections. An itemized statement of every expenditure
90.16made during the month from such account shall be submitted to the commissioner under
90.17rules established by the commissioner. If necessary, the commissioner shall make proper
90.18requisition upon the commissioner of management and budget for a
90.19secure the contingent account for each institution.
90.20 Sec. 57. Minnesota Statutes 2016, section 244.19, subdivision 7, is amended to read:
90.21 Subd. 7. Certificate of counties entitled to state aid. On or before January 1 of each
90.22year, until 1970 and on or before April 1 thereafter, the commissioner of corrections shall
90.23deliver to the commissioner of management and budget a certificate in duplicate for each
90.24county of the state entitled to receive state aid under the provisions of this section. Upon
90.25the receipt of such certificate, the commissioner of management and budget shall
90.26
90.27certificate to be due to the county specified. The commissioner of management and budget
90.28shall transmit such
90.29certificate prepared by the commissioner of corrections.
90.30 Sec. 58. Minnesota Statutes 2016, section 256B.20, is amended to read:
90.31256B.20 COUNTY APPROPRIATIONS.
91.1The providing of funds necessary to carry out the provisions hereof on the part of the
91.2counties and the manner of administering the funds of the counties and the state shall be as
91.3follows:
91.4(1) The board of county commissioners of each county shall annually set up in its budget
91.5an item designated as the county medical assistance fund and levy taxes and fix a rate
91.6therefor sufficient to produce the full amount of such item, in addition to all other tax levies
91.7and tax rate, however fixed or determined, sufficient to carry out the provisions hereof and
91.8sufficient to pay in full the county share of assistance and administrative expense for the
91.9ensuing year; and annually on or before October 10 shall certify the same to the county
91.10auditor to be entered by the auditor on the tax rolls. Such tax levy and tax rate shall make
91.11proper allowance and provision for shortage in tax collections.
91.12(2) Any county may transfer surplus funds from any county fund, except the sinking or
91.13ditch fund, to the general fund or to the county medical assistance fund in order to provide
91.14money necessary to pay medical assistance awarded hereunder. The money so transferred
91.15shall be used for no other purpose, but any portion thereof no longer needed for such purpose
91.16shall be transferred back to the fund from which taken.
91.17(3) Upon the order of the county agency the county auditor shall draw a warrant on the
91.18proper fund in accordance with the order, and the county treasurer shall pay out the amounts
91.19ordered to be paid out as medical assistance hereunder. When necessary by reason of failure
91.20to levy sufficient taxes for the payment of the medical assistance in the county, the county
91.21auditor shall carry any such payments as an overdraft on the medical assistance funds of
91.22the county until sufficient tax funds shall be provided for such assistance payments. The
91.23board of county commissioners shall include in the tax levy and tax rate in the year following
91.24the year in which such overdraft occurred, an amount sufficient to liquidate such overdraft
91.25in full.
91.26(4) Claims for reimbursement and reports shall be presented to the state agency by the
91.27respective counties as required under section
91.28agency shall audit such claims and certify to the commissioner of management and budget
91.29the amounts due the respective counties without delay. The amounts so certified shall be
91.30paid within ten days after such certification, from the state treasury upon
91.31of the commissioner of management and budget from any money available therefor. The
91.32money available to the state agency to carry out the provisions hereof, including all federal
91.33funds available to the state, shall be kept and deposited by the commissioner of management
91.34and budget in the revenue fund and disbursed
91.35state funds.
92.1 Sec. 59. Minnesota Statutes 2016, section 260B.331, subdivision 2, is amended to read:
92.2 Subd. 2. Cost of group foster care. Whenever a child is placed in a group foster care
92.3facility as provided in section
92.4of providing the care shall, upon certification by the juvenile court, be paid from the welfare
92.5fund of the county in which the proceedings were held. To reimburse the counties for the
92.6costs of providing group foster care for delinquent children and to promote the establishment
92.7of suitable group foster homes, the state shall quarterly, from funds appropriated for that
92.8purpose, reimburse counties 50 percent of the costs not paid by federal and other available
92.9state aids and grants. Reimbursement shall be prorated if the appropriation is insufficient.
92.10The commissioner of corrections shall establish procedures for reimbursement and certify
92.11to the commissioner of management and budget each county entitled to receive state aid
92.12under the provisions of this subdivision. Upon receipt of a certificate the commissioner of
92.13management and budget shall issue a state
92.14amount due, together with a copy of the certificate prepared by the commissioner of
92.15corrections.
92.16 Sec. 60. Minnesota Statutes 2016, section 260C.331, subdivision 2, is amended to read:
92.17 Subd. 2. Cost of group foster care. Whenever a child is placed in a group foster care
92.18facility as provided in section
92.19cost of providing the care shall, upon certification by the juvenile court, be paid from the
92.20welfare fund of the county in which the proceedings were held. To reimburse the counties
92.21for the costs of promoting the establishment of suitable group foster homes, the state shall
92.22quarterly, from funds appropriated for that purpose, reimburse counties 50 percent of the
92.23costs not paid by federal and other available state aids and grants. Reimbursement shall be
92.24prorated if the appropriation is insufficient.
92.25The commissioner of corrections shall establish procedures for reimbursement and certify
92.26to the commissioner of management and budget each county entitled to receive state aid
92.27under the provisions of this subdivision. Upon receipt of a certificate the commissioner of
92.28management and budget shall issue a state
92.29amount due, together with a copy of the certificate prepared by the commissioner of
92.30corrections.
92.31 Sec. 61. Minnesota Statutes 2016, section 273.121, subdivision 1, is amended to read:
92.32 Subdivision 1. Notice. Any county assessor or city assessor having the powers of a
92.33county assessor, valuing or classifying taxable real property shall in each year notify those
93.1persons whose property is to be included on the assessment roll that year if the person's
93.2address is known to the assessor, otherwise the occupant of the property. The notice shall
93.3be in writing and shall be sent by ordinary mail at least ten days before the meeting of the
93.4local board of appeal and equalization under section
93.5under section
93.6the assessor may send the notice in electronic form or by electronic mail instead of on paper
93.7or by ordinary mail. It shall contain: (1) the market value for the current and prior assessment,
93.8(2) the qualifying amount of any improvements under section
93.9the current assessment, (3) the market value subject to taxation after subtracting the amount
93.10of any qualifying improvements for the current assessment, (4) the classification of the
93.11property for the current and prior assessment, (5) the assessor's office address, and (6) the
93.12dates, places, and times set for the meetings of the local board of appeal and equalization,
93.13the review process established under section
93.14of appeal and equalization. If the classification of the property has changed between the
93.15current and prior assessments, a specific note to that effect shall be prominently listed on
93.16the statement. The commissioner of revenue shall specify the form of the notice. The assessor
93.17shall attach to the assessment roll a statement that the notices required by this section have
93.18been mailed. Any assessor who is not provided sufficient funds from the assessor's governing
93.19body to provide such notices, may make application to the commissioner of revenue to
93.20finance such notices. The commissioner of revenue shall conduct an investigation and, if
93.21satisfied that the assessor does not have the necessary funds, issue a certification to the
93.22commissioner of management and budget of the amount necessary to provide such notices.
93.23The commissioner of management and budget shall issue a
93.24and shall deduct such amount from any state payment to such county or municipality. The
93.25necessary funds to make such payments are hereby appropriated. Failure to receive the
93.26notice shall in no way affect the validity of the assessment, the resulting tax, the procedures
93.27of any board of review or equalization, or the enforcement of delinquent taxes by statutory
93.28means.
93.29 Sec. 62. Minnesota Statutes 2016, section 287.08, is amended to read:
93.30287.08 TAX, HOW PAYABLE; RECEIPTS.
93.31 (a) The tax imposed by sections
93.32county in this state in which the real property or some part is located at or before the time
93.33of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and
93.34the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes
93.35any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall
94.1be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from
94.2taxation the endorsement shall, in substance, be "exempt from registration tax." In either
94.3case the receipt must be signed by the treasurer. In case the treasurer is unable to determine
94.4whether a claim of exemption should be allowed, the tax must be paid as in the case of a
94.5taxable mortgage. For documents submitted electronically, the endorsements and tax amount
94.6shall be affixed electronically and no signature by the treasurer will be required. The actual
94.7payment method must be arranged in advance between the submitter and the receiving
94.8county.
94.9 (b) The county treasurer may refund in whole or in part any mortgage registry tax
94.10overpayment if a written application by the taxpayer is submitted to the county treasurer
94.11within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
94.12of the application, the taxpayer may bring an action in Tax Court in the county in which
94.13the tax was paid at any time after the expiration of six months from the time that the
94.14application was submitted. A denial of refund may be appealed within 60 days from the
94.15date of the denial by bringing an action in Tax Court in the county in which the tax was
94.16paid. The action is commenced by the serving of a petition for relief on the county treasurer,
94.17and by filing a copy with the court. The county attorney shall defend the action. The county
94.18treasurer shall notify the treasurer of each county that has or would receive a portion of the
94.19tax as paid.
94.20 (c) If the county treasurer determines a refund should be paid, or if a refund is ordered
94.21by the court, the county treasurer of each county that actually received a portion of the tax
94.22shall immediately pay a proportionate share of three percent of the refund using any available
94.23county funds. The county treasurer of each county that received, or would have received,
94.24a portion of the tax shall also pay their county's proportionate share of the remaining 97
94.25percent of the court-ordered refund on or before the 20th day of the following month using
94.26solely the mortgage registry tax funds that would be paid to the commissioner of revenue
94.27on that date under section
94.28to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in
94.29which the action was brought shall file a claim with the commissioner of revenue under
94.30section
94.31remaining portion upon receipt of a
94.32claim.
94.33 (d) When any mortgage covers real property located in more than one county in this
94.34state the total tax must be paid to the treasurer of the county where the mortgage is first
94.35presented for recording, and the payment must be receipted as provided in paragraph (a).
95.1If the principal debt or obligation secured by such a multiple county mortgage exceeds
95.2$10,000,000, the nonstate portion of the tax must be divided and paid over by the county
95.3treasurer receiving it, on or before the 20th day of each month after receipt, to the county
95.4or counties entitled in the ratio that the estimated market value of the real property covered
95.5by the mortgage in each county bears to the estimated market value of all the real property
95.6in this state described in the mortgage. In making the division and payment the county
95.7treasurer shall send a statement giving the description of the real property described in the
95.8mortgage and the estimated market value of the part located in each county. For this purpose,
95.9the treasurer of any county may require the treasurer of any other county to certify to the
95.10former the estimated market value of any tract of real property in any mortgage.
95.11 (e) The mortgagor must pay the tax imposed by sections
95.12may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee
95.13collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee
95.14has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax
95.15collected for that purpose and the mortgagor is relieved of any further obligation to pay the
95.16tax as to the amount collected by the mortgagee for this purpose.
95.17 Sec. 63. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:
95.18 Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct a
95.19surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
95.20premiums, less return premiums, on all direct business received by any licensed foreign or
95.21domestic fire insurance company on property in a city of the first class, or by its agents for
95.22it, in cash or otherwise.
95.23(b) By July 31 and December 31 of each year, the commissioner of management and
95.24budget shall
95.25to the total amount of the surcharge on the premiums collected within that city since the
95.26previous payment.
95.27(c) The treasurer of the city shall place the money received under this subdivision in a
95.28special account or fund to defray all or a portion of the employer contribution requirement
95.29of public employees police and fire plan coverage for city firefighters.
95.30 Sec. 64. Minnesota Statutes 2016, section 299C.21, is amended to read:
95.31299C.21 PENALTY ON LOCAL OFFICER REFUSING INFORMATION.
96.1If any public official charged with the duty of furnishing to the bureau fingerprint records,
96.2biological specimens, reports, or other information required by sections
96.4bureau, in writing, shall notify the state, county, or city officer charged with the issuance
96.5of
96.6the state, county, or city official shall withhold the issuance of
96.7of the salary or other compensation accruing to such officer for the period of 30 days
96.8thereafter until notified by the bureau that such suspension has been released by the
96.9performance of the required duty.
96.10 Sec. 65. Minnesota Statutes 2016, section 348.05, is amended to read:
96.11348.05 COMMISSIONER OF MANAGEMENT AND BUDGET TO ISSUE
96.12
96.13The commissioner of management and budget shall audit all such claims, and, on the
96.14first Monday of October, in each year, shall issue a
96.15for the amount to which each is entitled; but, if the aggregate of compensation due to all
96.16such claimants shall exceed the appropriation therefor, the commissioner shall distribute
96.17the available amount amongst them pro rata, which distribution shall relieve the state from
96.18further obligation to such claimants for the year.
96.19 Sec. 66. Minnesota Statutes 2016, section 352.04, subdivision 9, is amended to read:
96.20 Subd. 9. Erroneous deductions, canceled
96.21from the salary of an employee for the retirement fund in excess of required amounts must,
96.22upon discovery and verification by the department making the deduction, be refunded to
96.23the employee.
96.24(b) If a deduction for the retirement fund is taken from a salary
96.25and the
96.26to the funds of the department making the payment, the sum deducted, or the part of it
96.27required to adjust the deductions, must be refunded to the department or institution if the
96.28department applies for the refund on a form furnished by the director. The department's
96.29payments must likewise be refunded to the department.
96.30(c) If erroneous employee deductions and employer contributions are caused by an error
96.31in plan coverage involving the plan and any other plans specified in section
96.32section applies. If the employee should have been covered by the plan governed by chapter
96.33352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken
97.1in error must be directly transferred to the applicable employee's account in the correct
97.2retirement plan, with interest at the rate of 0.71 percent per month until June 30, 2015, and
97.30.667 percent per month thereafter, compounded annually, from the first day of the month
97.4following the month in which coverage should have commenced in the correct defined
97.5contribution plan until the end of the month in which the transfer occurs.
97.6 Sec. 67. Minnesota Statutes 2016, section 352.05, is amended to read:
97.7352.05 COMMISSIONER OF MANAGEMENT AND BUDGET TO BE
97.8TREASURER OF SYSTEM.
97.9The commissioner of management and budget is ex officio treasurer of the retirement
97.10funds of the system. The general bond to the state shall cover all liability for actions as
97.11treasurer of these funds. Funds of the system received by the commissioner of management
97.12and budget must be set aside in the state treasury to the credit of the proper fund. The
97.13commissioner of management and budget shall deliver to the director copies of all payroll
97.14abstracts of the state together with the commissioner of management and budget's
97.15payments covering the deductions made on these payroll abstracts for the retirement fund.
97.16The director shall have a list made of the commissioner of management and budget's
97.17payments. These
97.18commissioner of management and budget shall pay out of this fund only upon abstracts
97.19signed by the director, or by the finance officer designated by the director during the disability
97.20or the absence of the director from the city of St. Paul, Minnesota. Abstracts for investments
97.21may be signed by the executive director of the State Board of Investment.
97.22 Sec. 68. Minnesota Statutes 2016, section 352.115, subdivision 12, is amended to read:
97.23 Subd. 12. Death, return of
97.24employee, a disabled employee, or a survivor has in possession the commissioner of
97.25management and budget's
97.26benefit, or survivor benefit from the retirement fund, in the absence of probate proceedings,
97.27and upon the return of the
97.28annuity or benefit
97.29Payments made under this subdivision shall be a bar to recovery by any other person or
97.30persons.
98.1 Sec. 69. Minnesota Statutes 2016, section 352.12, subdivision 13, is amended to read:
98.2 Subd. 13. Refund, beneficiary. If upon death a former employee has in possession a
98.3commissioner of management and budget's
98.4covering a refund of accumulated contributions in the retirement fund, in the absence of
98.5probate proceedings the commissioner of management and budget's
98.6be returned for cancellation, and then upon application made by the last designated
98.7beneficiary of the deceased former employee, refund of the accumulated contributions must
98.8be paid to the last designated beneficiary. Payments made under this subdivision are a bar
98.9to recovery by any other person or persons.
98.10 Sec. 70. Minnesota Statutes 2016, section 353.05, is amended to read:
98.11353.05 CUSTODIAN OF FUNDS.
98.12The commissioner of management and budget shall be ex officio treasurer of the
98.13retirement funds of the association and the general bond of the commissioner of management
98.14and budget to the state must be so conditioned as to cover all liability for acts as treasurer
98.15of these funds. All money of the association received by the commissioner of management
98.16and budget must be set aside in the state treasury to the credit of the proper fund or account.
98.17The commissioner of management and budget shall transmit monthly to the executive
98.18director a detailed statement of all amounts so received and credited to the funds. Payments
98.19out of the funds may only be made
98.20management and budget, upon abstracts signed by the executive director; provided that
98.21abstracts for investment may be signed by the executive director of the State Board of
98.22Investment.
98.23 Sec. 71. Minnesota Statutes 2016, section 353.27, subdivision 7, is amended to read:
98.24 Subd. 7. Adjustment for erroneous receipts or disbursements. (a) Except as provided
98.25in paragraph (b), erroneous employee deductions and erroneous employer contributions and
98.26additional employer contributions to the general employees retirement plan of the Public
98.27Employees Retirement Association or to the public employees police and fire retirement
98.28plan for a person who otherwise does not qualify for membership under this chapter, are
98.29considered:
98.30(1) valid if the initial erroneous deduction began before January 1, 1990. Upon
98.31determination of the error by the association, the person may continue membership in the
98.32association while employed in the same position for which erroneous deductions were taken,
99.1or file a written election to terminate membership and apply for a refund upon termination
99.2of public service or defer an annuity under section
99.3(2) invalid, if the initial erroneous employee deduction began on or after January 1,
99.41990. Upon determination of the error, the association shall refund all erroneous employee
99.5deductions and all erroneous employer contributions as specified in paragraph (e). No person
99.6may claim a right to continued or past membership in the association based on erroneous
99.7deductions which began on or after January 1, 1990.
99.8(b) Erroneous deductions taken from the salary of a person who did not qualify for
99.9membership in the general employees retirement plan of the Public Employees Retirement
99.10Association or in the public employees police and fire retirement plan by virtue of concurrent
99.11employment before July 1, 1978, which required contributions to another retirement fund
99.12or relief association established for the benefit of officers and employees of a governmental
99.13subdivision, are invalid. Upon discovery of the error, allowable service credit for all invalid
99.14service if forfeited and, upon termination of public service, the association shall refund all
99.15erroneous employee deductions to the person, with interest as determined under section
99.17employer. This paragraph has both retroactive and prospective application.
99.18(c) Adjustments to correct employer contributions and employee deductions taken in
99.19error from amounts which are not salary under section
99.20made as specified in paragraph (e). The period of adjustment must be limited to the fiscal
99.21year in which the error is discovered by the association and the immediate two preceding
99.22fiscal years.
99.23(d) If there is evidence of fraud or other misconduct on the part of the employee or the
99.24employer, the board of trustees may authorize adjustments to the account of a member or
99.25former member to correct erroneous employee deductions and employer contributions on
99.26invalid salary and the recovery of any overpayments for a period longer than provided for
99.27under paragraph (c).
99.28(e) Upon discovery of the receipt of erroneous employee deductions and employer
99.29contributions under paragraph (a), clause (2), or paragraph (c), the association must require
99.30the employer to discontinue the erroneous employee deductions and erroneous employer
99.31contributions reported on behalf of a member. Upon discontinuation, the association must:
99.32(1) for a member, provide a refund in the amount of the invalid employee deductions
99.33with interest on the invalid employee deductions at the rate specified under section
100.1subdivision 2
100.2credit or refund is made;
100.3(2) for a former member who:
100.4(i) is not receiving a retirement annuity or benefit, return the erroneous employee
100.5deductions to the former member through a refund with interest at the rate specified under
100.6section
100.7through the date the credit or refund is made; or
100.8(ii) is receiving a retirement annuity or disability benefit, or a person who is receiving
100.9an optional annuity or survivor benefit, for whom it has been determined an overpayment
100.10must be recovered, adjust the payment amount and recover the overpayments as provided
100.11under this section; and
100.12(3) return the invalid employer contributions reported on behalf of a member or former
100.13member to the employer by providing a credit against future contributions payable by the
100.14employer.
100.15(f) In the event that a salary
100.16retirement fund was taken has been canceled or the amount of the
100.17returned to the funds of the department making the payment, a refund of the sum deducted,
100.18or any portion of it that is required to adjust the deductions, must be made to the department
100.19or institution.
100.20(g) If the association discovers that a retirement annuity, survivor benefit, or disability
100.21benefit has been incorrectly calculated by using invalid service or salary, or due to any
100.22erroneous calculation procedure, the association must recalculate the annuity or benefit
100.23payable and begin payment of the corrected annuity or benefit effective the first of the month
100.24following discovery of the error. Any overpayment resulting from the incorrect calculation
100.25must be recovered as provided under subdivision 7b, if the accrual date, or any adjustment
100.26in the amount of the annuity or benefit calculated after the accrual date, except adjustments
100.27required under section
100.28two immediate previous fiscal years.
100.29(h) Notwithstanding the provisions of this subdivision, the association may apply the
100.30Revenue Procedures defined in the federal Internal Revenue Service Employee Plans
100.31Compliance Resolution System and not issue a refund of erroneous employee deductions
100.32and employer contributions or not recover a small overpayment of benefits if the cost to
100.33correct the error would exceed the amount of the member refund or overpayment.
101.1(i) Any fees or penalties assessed by the federal Internal Revenue Service for any failure
101.2by an employer to follow the statutory requirements for reporting eligible members and
101.3salary must be paid by the employer.
101.4 Sec. 72. Minnesota Statutes 2016, section 354.42, subdivision 7, is amended to read:
101.5 Subd. 7. Erroneous salary deductions or direct payments. (a) Any deductions taken
101.6from the salary of an employee for the retirement fund in excess of amounts required must
101.7be refunded to the employee upon the discovery of the error and after the verification of
101.8the error by the employing unit making the deduction. The corresponding excess employer
101.9contribution and excess additional employer contribution amounts attributable to the
101.10erroneous salary deduction must be refunded to the employing unit.
101.11(b) If salary deductions and employer contributions were erroneously transmitted to the
101.12retirement fund and should have been transmitted to the plan covered by chapter 352D,
101.13353D, 354B, or 354D, the executive director must transfer these salary deductions and
101.14employer contributions to the account of the appropriate person under the applicable plan.
101.15The transfer to the applicable defined contribution plan account must include interest at the
101.16rate of 0.71 percent per month, compounded annually, from the first day of the month
101.17following the month in which coverage should have commenced in the defined contribution
101.18plan until the end of the month in which the transfer occurs.
101.19(c) A potential transfer under paragraph (b) that would cause the plan to fail to be a
101.20qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be
101.21made by the executive director. Within 30 days after being notified by the Teachers
101.22Retirement Association of an unmade potential transfer under this paragraph, the employer
101.23of the affected person must transmit an amount representing the applicable salary deductions
101.24and employer contributions, without interest, to the account of the applicable person under
101.25the appropriate plan. The retirement association must provide a credit for the amount of the
101.26erroneous salary deductions and employer contributions against future contributions from
101.27the employer.
101.28(d) If a salary
101.29was taken has been canceled or the amount of the
101.30returned to the funds of the employing unit making the payment, a refund of the amount
101.31deducted, or any portion of it that is required to adjust the salary deductions, must be made
101.32to the employing unit.
101.33(e) Erroneous direct payments of member-paid contributions or erroneous salary
101.34deductions that were not refunded during the regular payroll cycle processing must be
102.1refunded to the member, plus interest computed using the rate and method specified in
102.2section
102.3(f) Any refund under this subdivision that would cause the plan to fail to be a qualified
102.4plan under section 401(a) of the Internal Revenue Code, as amended, may not be refunded
102.5and instead must be credited against future contributions payable by the employer. The
102.6employer is responsible for refunding to the applicable employee any amount that was
102.7erroneously deducted from the salary of the employee, with interest as specified in paragraph
102.8(e).
102.9(g) If erroneous employee deductions and employer contributions are caused by an error
102.10in plan coverage involving the plan and any other plan specified in section
102.11section applies.
102.12 Sec. 73. Minnesota Statutes 2016, section 354.52, subdivision 4, is amended to read:
102.13 Subd. 4. Reporting and remittance requirements. An employer shall remit all amounts
102.14due to the association and furnish a statement indicating the amount due and transmitted
102.15with any other information required by the executive director. If an amount due is not
102.16received by the association within 14 calendar days of the payroll
102.17amount accrues interest at an annual rate of 8.5 percent compounded annually from the due
102.18date until the amount is received by the association. All amounts due and other employer
102.19obligations not remitted within 60 days of notification by the association must be certified
102.20to the commissioner of management and budget who shall deduct the amount from any state
102.21aid or appropriation amount applicable to the employing unit.
102.22 Sec. 74. Minnesota Statutes 2016, section 354.52, subdivision 4b, is amended to read:
102.23 Subd. 4b. Payroll cycle reporting requirements. An employing unit shall provide the
102.24following data to the association for payroll
102.2514 calendar days after the date of the payroll
102.26the executive director:
102.27(1) association member number;
102.28(2) employer-assigned employee number;
102.29(3) Social Security number;
102.30(4) amount of each salary deduction;
103.1(5) amount of salary as defined in section
103.2deduction was made;
103.3(6) reason for payment;
103.4(7) the beginning and ending dates of the payroll period covered and the date of actual
103.5payment;
103.6(8) fiscal year of salary earnings;
103.7(9) total remittance amount including employee, employer, and additional employer
103.8contributions;
103.9(10) reemployed annuitant salary under section
103.10(11) other information as may be required by the executive director.
103.11 Sec. 75. Minnesota Statutes 2016, section 401.15, subdivision 1, is amended to read:
103.12 Subdivision 1. Certified statements; determinations; adjustments. Within 60 days
103.13of the end of each calendar quarter, participating counties which have received the payments
103.14authorized by section
103.15the amounts expended and costs incurred in furnishing the correctional services provided
103.16in sections
103.17in the manner provided in sections
103.18participating county is entitled to receive, making any adjustments necessary to rectify any
103.19disparity between the amounts received pursuant to the estimate provided in section
103.20and the amounts actually expended. If the amount received pursuant to the estimate is greater
103.21than the amount actually expended during the quarter, the commissioner may withhold the
103.22difference from any subsequent monthly payments made pursuant to section
103.23certification by the commissioner of the amount a participating county is entitled to receive
103.24under the provisions of section
103.25management and budget shall thereupon issue a
103.26officer of each participating county for the amount due together with a copy of the certificate
103.27prepared by the commissioner.
103.28 Sec. 76. Minnesota Statutes 2016, section 446A.086, subdivision 4, is amended to read:
103.29 Subd. 4. Notifications; payment; appropriation. (a) After receipt of a notice of a
103.30default or potential default in payment of principal or interest in debt obligations covered
103.31by this section or an agreement under this section, and after consultation with the
103.32governmental unit and the paying agent, and after verification of the accuracy of the
104.1information provided, the authority shall notify the commissioner of the potential default.
104.2The notice must include a final figure as to the amount due that the governmental unit will
104.3be unable to repay on the date due.
104.4 (b) Upon receipt of this notice from the authority, the commissioner shall issue a
104.5payment and authorize the authority to pay to the bond holders or paying agent for the debt
104.6obligation the specified amount on or before the date due. The amounts needed for the
104.7purposes of this subdivision are annually appropriated to the authority from the general
104.8fund.
104.9 Sec. 77. Minnesota Statutes 2016, section 446A.16, subdivision 1, is amended to read:
104.10 Subdivision 1. Functions of commissioner of management and budget. Except as
104.11otherwise provided in this section, money of the authority must be paid to the commissioner
104.12of management and budget as agent of the authority and the commissioner shall not
104.13commingle the money with other money. The money in the accounts of the authority must
104.14be paid out only
104.15requisition of the chair of the authority or of another officer or employee as the authority
104.16authorizes. Deposits of the authority's money must, if required by the commissioner or the
104.17authority, be secured by obligations of the United States or of the state of a market value
104.18equal at all times to the amount of the deposit and all banks and trust companies are
104.19authorized to give security for the deposits.
104.20 Sec. 78. Minnesota Statutes 2016, section 462A.18, subdivision 1, is amended to read:
104.21 Subdivision 1. Functions of commissioner of management and budget. All moneys
104.22of the agency, except as otherwise authorized or provided in this section, shall be paid to
104.23the commissioner of management and budget as agent of the agency, who shall not
104.24commingle such moneys with any other moneys. The moneys in such accounts shall be
104.25paid out
104.26or of such other officer or employee as the agency shall authorize to make such requisition.
104.27All deposits of such moneys shall, if required by the commissioner or the agency, be secured
104.28by obligations of the United States or of the state of a market value equal at all times to the
104.29amount of the deposit and all banks and trust companies are authorized to give such security
104.30for such deposits.
105.1 Sec. 79. Minnesota Statutes 2016, section 475A.04, subdivision 1, is amended to read:
105.2 Subdivision 1. Procedure. In the event that funds sufficient to pay all of the principal
105.3and interest due on any guaranteed bond are not in the hands of the municipal treasurer or
105.4the paying agent at least 15 days before the due date, the treasurer or agent shall report the
105.5amount of the deficiency to the paying agent and the auditor who shall grant a loan to the
105.6issuer in this amount and shall certify to the issuer, the paying agent, and the auditor and
105.7treasurer of each county in which property subject to taxation by the issuer is situated, the
105.8amount of the loan and interest to accrue thereon to the due date of the loan, and the
105.9commissioner of management and budget shall issue a
105.10amount and shall remit it to the paying agent on or before the due date. If the municipal
105.11treasurer fails to deposit funds with the paying agent sufficient to pay all principal and
105.12interest due on any guaranteed bond on any date, without having previously given the notice
105.13herein required, the paying agent may report the amount of the deficiency to the
105.14commissioner of management and budget, who shall forthwith grant a loan to the issuer for
105.15this amount plus interest to accrue thereon for one month at the rate represented by the
105.16coupons then due, and the loan shall be certified and remitted as provided above. The paying
105.17agent may advance its own funds for the payment of any guaranteed bonds and interest due
105.18for which it has not received sufficient funds from the municipality, and may contract with
105.19the municipality to make such advances, and shall be entitled to reimbursement therefor
105.20from the proceeds of the loan, with interest at the rate represented by the coupons due. The
105.21issuing municipality shall give a receipt to the commissioner of management and budget
105.22for the amount of the loan and interest.
105.23 Sec. 80. Minnesota Statutes 2016, section 525.841, is amended to read:
105.24525.841 ESCHEAT RETURNED.
105.25In all such cases the commissioner of management and budget shall be furnished with
105.26a certified copy of the court's order assigning the escheated property to the persons entitled
105.27thereto, and upon notification of payment of the estate tax, the commissioner of management
105.28and budget shall
105.29persons designated in such order. In the event any escheated property has been sold pursuant
105.30to sections
105.31
105.32of the decedent's estate. There is hereby annually appropriated from any moneys in the state
105.33treasury not otherwise appropriated an amount sufficient to make payment to all such
105.34designated persons. No interest shall be allowed on any amount paid to such persons.
106.3 Section 1. Minnesota Statutes 2016, section 3.842, subdivision 4a, is amended to read:
106.4 Subd. 4a. Objections to rules or proposed rules. (a) For purposes of this subdivision,
106.5"committee" means the house of representatives policy committee or senate policy committee
106.6with primary jurisdiction over state governmental operations. The commission or a committee
106.7may object to a rule or proposed rule as provided in this subdivision
106.8
106.9
106.10(1) is beyond the procedural or substantive authority delegated to the agency
106.11
106.12
106.13(2) is inconsistent with the enabling statute;
106.14(3) is unnecessary or redundant;
106.15(4) has a substantial economic impact as defined in section 14.02, subdivision 5;
106.16(5) is not based on sound, reasonably available scientific, technical, economic, or other
106.17information;
106.18(6) is not cost-effective;
106.19(7) is unduly burdensome; or
106.20(8) is more restrictive than the standard, limitation, or requirement imposed by federal
106.21law or rule pertaining to the same subject matter.
106.22If the commission or committee objects to all or some portion of a rule or proposed rule,
106.23the commission or committee
106.24State. The filed objection must contain a concise statement of the commission's or
106.25committee's reasons for its action.
106.26
106.27
106.28must be filed within 30 days of receipt of the notice under section 14.14, 14.22, 14.386,
106.2914.388, 14.389, or 14.3895.
106.30(b) The secretary of state shall affix to each objection a certification of the date and time
106.31of its filing and as soon after the objection is filed as practicable shall electronically transmit
106.32a
107.1The secretary of state shall also maintain a permanent register open to public inspection of
107.2all objections by the commission or committee.
107.3(c) The commission or committee shall publish and index an objection filed under this
107.4section in the next issue of the State Register. The revisor of statutes shall indicate the
107.5existence of the objection adjacent to the rule in question when that rule is published in
107.6Minnesota Rules.
107.7(d) Within 14 days after the filing of an objection by the commission or committee to a
107.8rule or proposed rule, the issuing agency shall respond in writing to the objecting entity.
107.9After receipt of the response, the commission or committee may withdraw or modify its
107.10objection. After the filing of an objection that is not subsequently withdrawn, the agency
107.11may not adopt the rule until the legislature adjourns the annual legislative session that began
107.12after the objection was filed. If the commission files an objection that is not subsequently
107.13withdrawn, the commission may, as soon as practical, make a recommendation on a bill
107.14that approves the proposed rule, prohibits adoption of the proposed rule, or amends or repeals
107.15the law governing a previously adopted rule for which an objection was filed.
107.16(e) After the filing of an objection by the commission or committee that is not
107.17subsequently withdrawn, the burden is upon the agency in any proceeding for judicial review
107.18or for enforcement of the rule to establish that the whole or portion of the rule objected to
107.19is valid and demonstrates that the objection raised under paragraph (a) is not justified, based
107.20on the criteria for objecting to a rule under paragraph (a).
107.21(f) The failure of the commission or a committee to object to a rule is not an implied
107.22legislative authorization of its validity.
107.23(g) In accordance with sections
107.24petition for a declaratory judgment to determine the validity of a rule objected to by the
107.25commission or committee. The action must be started within two years after an objection
107.26is filed in the Office of the Secretary of State.
107.27(h) The commission or a committee may intervene in litigation arising from agency
107.28action. For purposes of this paragraph, agency action means the whole or part of a rule, or
107.29the failure to issue a rule.
107.30 Sec. 2. Minnesota Statutes 2016, section 14.002, is amended to read:
107.3114.002 STATE REGULATORY POLICY.
107.32The legislature recognizes the important and sensitive role for administrative rules in
107.33implementing policies and programs created by the legislature. However, the legislature
108.1finds that some regulatory rules and programs have become overly prescriptive and inflexible,
108.2thereby increasing costs to the state, local governments, and the regulated community and
108.3decreasing the effectiveness of the regulatory program. Therefore,
108.4agencies must develop rules and regulatory programs that emphasize superior achievement
108.5in meeting the agency's regulatory objectives and maximum flexibility for the regulated
108.6party and the agency in meeting those goals.
108.7 Sec. 3. Minnesota Statutes 2016, section 14.02, is amended by adding a subdivision to
108.8read:
108.9 Subd. 5. Substantial economic impact. A rule has a "substantial economic impact" if
108.10the rule would result in, or likely result in:
108.11(1) an adverse effect or impact on the private-sector economy of the state of Minnesota
108.12of $5,000,000 or more in a single year;
108.13(2) a significant increase in costs or prices for consumers, individual private-sector
108.14industries, state agencies, local governments, individuals, or private-sector enterprises within
108.15certain geographic regions inside the state of Minnesota;
108.16(3) significant adverse impacts on the competitiveness of private-sector Minnesota-based
108.17enterprises, or on private-sector employment, investment, productivity, or innovation within
108.18the state of Minnesota; or
108.19(4) compliance costs, in the first year after the rule takes effect, of more than $25,000
108.20for any one business that has fewer than 50 full-time employees, or for any one statutory
108.21or home rule charter city that has fewer than ten full-time employees.
108.22 Sec. 4. Minnesota Statutes 2016, section 14.05, subdivision 1, is amended to read:
108.23 Subdivision 1. Authority to adopt original rules restricted. (a) Each agency shall
108.24adopt, amend, suspend, or repeal its rules:
108.25(1) in accordance with the procedures specified in sections
108.26(2) only pursuant to authority delegated by law; and
108.27(3) in full compliance with its duties and obligations.
108.28(b) If a law authorizing rules is repealed, the rules adopted pursuant to that law are
108.29automatically repealed on the effective date of the law's repeal unless there is another law
108.30authorizing the rules.
109.1(c) Except as provided in
109.2sections
109.3repeal rules.
109.4 Sec. 5. Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to
109.5read:
109.6 Subd. 1a. Limitation regarding certain policies, guidelines, and other interpretive
109.7statements. An agency shall not seek to implement or enforce against any person a policy,
109.8guideline, or other interpretive statement that meets the definition of a rule under this chapter
109.9if the policy, guideline, or other interpretive statement has not been adopted as a rule in
109.10accordance with this chapter including but not limited to solid waste policy plan revisions
109.11authorized by other law. In any proceeding under chapter 14 challenging an agency action
109.12prohibited by this subdivision, the reviewing authority must independently and without
109.13deference to the agency determine if the agency has violated this subdivision. The agency
109.14must overcome the presumption that its action may not be enforced as a rule.
109.15 Sec. 6. Minnesota Statutes 2016, section 14.05, subdivision 2, is amended to read:
109.16 Subd. 2. Authority to modify proposed rule. (a) An agency may modify a proposed
109.17rule in accordance with the procedures of the Administrative Procedure Act. However, an
109.18agency may not modify a proposed rule so that it is substantially different from the proposed
109.19rule in the notice of intent to adopt rules or notice of hearing.
109.20(b) A modification does not make a proposed rule substantially different if:
109.21(1) the differences are within the scope of the matter announced in the notice of intent
109.22to adopt or notice of hearing and are in character with the issues raised in that notice;
109.23(2) the differences are a logical outgrowth of the contents of the notice of intent to adopt
109.24or notice of hearing and the comments submitted in response to the notice; and
109.25(3) the notice of intent to adopt or notice of hearing provided fair warning that the
109.26outcome of that rulemaking proceeding could be the rule in question.
109.27(c) In determining whether the notice of intent to adopt or notice of hearing provided
109.28fair warning that the outcome of that rulemaking proceeding could be the rule in question
109.29the following factors must be considered:
109.30(1) the extent to which persons who will be affected by the rule should have understood
109.31that the rulemaking proceeding on which it is based could affect their interests;
110.1(2) the extent to which the subject matter of the rule or issues determined by the rule are
110.2different from the subject matter or issues contained in the notice of intent to adopt or notice
110.3of hearing; and
110.4(3) the extent to which the effects of the rule differ from the effects of the proposed rule
110.5contained in the notice of intent to adopt or notice of hearing.
110.6(d) A modification makes a proposed rule substantially different if the modification
110.7causes a rule that did not previously have a substantial economic impact to have a substantial
110.8economic impact.
110.9 Sec. 7. Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to
110.10read:
110.11 Subd. 5a. Review and repeal of rules. By December 1 of each odd-numbered year,
110.12beginning December 1, 2017, an agency must submit to the governor, the Legislative
110.13Coordinating Commission, the policy and funding committees and divisions with jurisdiction
110.14over the agency, and the revisor of statutes, a list of any rules or portions of rules that are
110.15obsolete, unnecessary, or duplicative of other state or federal statutes or rules. The list must
110.16also include an explanation of why the rule or portion of the rule is obsolete, unnecessary,
110.17or duplicative of other state or federal statutes or rules. The agency must either report a
110.18timetable for repeal of the rule or portion of the rule, or must develop a bill for submission
110.19to the appropriate policy committee to repeal the obsolete, unnecessary, or duplicative rule.
110.20A report submitted under this subdivision must be signed by the person in the agency who
110.21is responsible for identifying and initiating repeal of obsolete rules. The report also must
110.22identify the status of any rules identified in the prior report as obsolete, unnecessary, or
110.23duplicative. If none of an agency's rules are obsolete, unnecessary, or duplicative, an agency's
110.24report must state that conclusion.
110.25 Sec. 8. Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to
110.26read:
110.27 Subd. 5b. Review and repeal of environmental assessment worksheets and impact
110.28statements. By December 1, 2017, and each odd-numbered year thereafter, the
110.29Environmental Quality Board, Pollution Control Agency, Department of Natural Resources,
110.30and Department of Transportation, after consultation with political subdivisions, shall submit
110.31to the governor, the Legislative Coordinating Commission, the chairs and ranking minority
110.32members of the house of representatives and senate committees having jurisdiction over
110.33environment and natural resources, and the revisor of statutes a list of mandatory
111.1environmental assessment worksheets or mandatory environmental impact statements for
111.2which the agency or a political subdivision is designated as the responsible government
111.3unit, and for each worksheet or statement, a document including:
111.4(1) intended outcomes of the specific worksheet or statement;
111.5(2) the cost to state and local government and the private sector;
111.6(3) the relationship of the worksheet or statement to other local, state, and federal permits;
111.7and
111.8(4) a justification for why the mandatory worksheet or statement should not be eliminated
111.9and its intended outcomes achieved through an existing permit or other federal, state, or
111.10local law.
111.11 Sec. 9. Minnesota Statutes 2016, section 14.05, subdivision 6, is amended to read:
111.12 Subd. 6. Veto of adopted rules. The governor may veto all or a severable portion of a
111.13rule of an agency as defined in section
111.14the veto to the State Register within 14 days of receiving a copy of the rule from the secretary
111.15of state under section
111.16under section
111.17notice is submitted to the State Register. This authority applies only to the extent that the
111.18agency itself would have authority, through rulemaking, to take such action. If the governor
111.19vetoes a rule or portion of a rule under this section, the governor shall notify the chairs of
111.20the legislative committees having jurisdiction over the agency whose rule was vetoed.
111.21 Sec. 10. Minnesota Statutes 2016, section 14.05, subdivision 7, is amended to read:
111.22 Subd. 7. Electronic documents permitted. (a) If sections 14.05 to 14.3895 require an
111.23agency to provide notice or documents to the public, the legislature, or other state agency,
111.24the agency may send the notice or document, or a link to the notice or document, using any
111.25reliable method of electronic transmission.
111.26(b) The agency must also send a paper copy of the notice or document if requested to
111.27do so by a member of the public, legislature, or other state agency.
111.28(c) An agency may file rule-related documents with the Office of Administrative Hearings
111.29by electronic transmission in the manner approved by that office and the Office of the
111.30Revisor of Statutes by electronic transmission in the manner approved by that office.
112.1 Sec. 11. Minnesota Statutes 2016, section 14.101, subdivision 1, is amended to read:
112.2 Subdivision 1. Required notice. In addition to seeking information by other methods
112.3designed to reach persons or
112.4proposal, an agency, at least 60 days before publication of a notice of intent to adopt or a
112.5notice of hearing, shall solicit comments from the public on the subject matter of a possible
112.6rulemaking proposal under active consideration within the agency by causing notice to be
112.7published in the State Register. The notice must include a description of the subject matter
112.8of the proposal and the types of groups and individuals likely to be affected, and must
112.9indicate where, when, and how persons may comment on the proposal and whether and
112.10how drafts of any proposal may be obtained from the agency.
112.11This notice must be published within 60 days of the effective date of any new or
112.12amendatory law requiring rules to be adopted, amended, or repealed.
112.13An agency intending to adopt an expedited rule under section 14.389 is exempt from
112.14the requirements of this section.
112.15 Sec. 12. [14.105] RULE NOTIFICATION.
112.16 Subdivision 1. Rule notification list. (a) Each agency shall maintain a list of all persons
112.17who have registered with the agency for the purpose of receiving notice of rule proceedings.
112.18A person may register to receive notice of rule proceedings by submitting to the agency:
112.19(1) the person's electronic mail address; or
112.20(2) the person's name and United States mail address, along with a request to receive
112.21copies of the notices by mail.
112.22(b) The agency shall post information on its Web site describing the registration process.
112.23 (c) The agency may inquire as to whether those persons on the list in paragraph (a) wish
112.24to remain on it and may remove persons for whom there is a negative reply or no reply
112.25within 60 days.
112.26 Subd. 2. Additional notice. (a) Each agency shall make reasonable efforts to notify
112.27persons or categories of persons who may be significantly affected by the rule being proposed
112.28by giving notice of its rule proceedings in newsletters, newspapers, or other publications,
112.29or through other means of communication.
112.30(b) For each rulemaking, the agency shall develop an additional notice plan describing
112.31its efforts to provide additional notification to persons or categories of persons who may be
112.32affected by the proposed rule or must explain why these efforts were not made. The additional
113.1notice plan must be submitted to the administrative law judge with the other submissions
113.2required by section 14.14, subdivision 2a, or 14.26. The agency also may seek prior approval
113.3of the additional notice plan under the rules of the Office of Administrative Hearings.
113.4 Sec. 13. Minnesota Statutes 2016, section 14.116, is amended to read:
113.514.116 NOTICE TO LEGISLATURE.
113.6(a) By January 15 each year, each agency must submit its current rulemaking docket
113.7maintained under section
113.9minority members of the legislative policy and budget committees with jurisdiction over
113.10the subject matter of the proposed rule and to the Legislative Coordinating Commission.
113.11Each agency must post a link to its rulemaking docket on the agency Web site home page.
113.12(b) When an agency
113.14send a copy of the same notice
113.15the chairs and ranking minority party members of the legislative policy and budget
113.16committees with jurisdiction over the subject matter of the proposed rules and to the
113.17Legislative Coordinating Commission.
113.18
113.19
113.20
113.21
113.22
113.23
113.24
113.25
113.26 Sec. 14. Minnesota Statutes 2016, section 14.125, is amended to read:
113.2714.125 TIME LIMIT ON AUTHORITY TO ADOPT, AMEND, OR REPEAL
113.28RULES.
113.29An agency shall publish a
113.30section 14.14, or a notice of intent to adopt rules or dual notice under section 14.22, within
113.3118 months of the effective date of the law authorizing or requiring rules to be adopted,
113.32amended, or repealed. If the notice is not published within the time limit imposed by this
114.1section, the
114.2
114.3
114.4other appropriate committees of the legislature, and the governor its failure to publish a
114.5notice and the reasons for that failure.
114.6
114.7
114.8
114.9 Sec. 15. Minnesota Statutes 2016, section 14.127, is amended to read:
114.1014.127 LEGISLATIVE APPROVAL REQUIRED.
114.11 Subdivision 1.
114.12determine if
114.13
114.14
114.15
114.16
114.17
114.185.
114.19 Subd. 2. Agency determination. An agency must make the determination required by
114.20subdivision 1 before the
114.21
114.22
114.23notice under section 14.14, 14.22, 14.225, or 14.389.
114.24 Subd. 3. Legislative approval required. (a) If the agency determines that a proposed
114.25rule has a substantial economic impact, the agency must request the legislative auditor to
114.26convene a five-person peer review advisory panel to conduct an impact analysis of the
114.27proposed rule. Within 30 days of receipt of the agency's request, the legislative auditor shall
114.28convene a peer review advisory panel. The advisory panel must be made up of individuals
114.29who have not directly or indirectly been involved in the work conducted or contracted by
114.30the agency and who are not employed by the agency. The agency must pay each panel
114.31member for the costs of the person's service on the panel, as determined by the legislative
114.32auditor. The agency shall transfer an amount from the agency's operating budget to the
114.33legislative auditor to pay for costs for convening the peer review advisory panel process.
114.34The panel may receive written and oral comments from the public during its review. The
115.1panel must submit its report within 60 days of being convened. The agency must receive a
115.2final report from the panel before the agency conducts a public hearing on a proposed rule
115.3or, if no hearing is held, before the rule is submitted to the administrative law judge. The
115.4panel's report must include its conclusions on the extent to which the proposed rule:
115.5(1) is based on sound, reasonably available scientific, technical, economic, or other
115.6information or rationale; and
115.7(2) is more restrictive than a standard, limitation, or requirement imposed by federal law
115.8or rule pertaining to the same subject matter, and a justification based on sound, reasonably
115.9available scientific, technical, economic, or other information and rationale that the more
115.10stringent standard is necessary to protect the public's health, safety, or welfare.
115.11(b) If the agency determines that a rule does not have a substantial economic impact,
115.12the administrative law judge must review this determination. If the administrative law judge
115.13determines that a rule may have a substantial economic impact, the agency must have the
115.14legislative auditor arrange for the analysis required by paragraph (a), and the agency must
115.15give new notice of intent to adopt the proposed rule after receiving this analysis. The
115.16administrative law judge may make this determination as part of the administrative law
115.17judge's report on the proposed rule, or at any earlier time after the administrative law judge
115.18is assigned to the rule proceeding.
115.19(c) If the agency determines that the
115.20rule has a substantial economic impact, or if the administrative law judge disapproves the
115.21agency's determination that the
115.22
115.23
115.24
115.25
115.26economic impact, the agency or the administrative law judge shall deliver the determination
115.27and peer review advisory panel report to the Legislative Coordinating Commission and to
115.28the chairs and ranking minority members of the house of representatives and senate
115.29committees and divisions with jurisdiction over the subject matter of the rule, and the
115.30proposed rule does not take effect until the rule is approved by a law enacted after the agency
115.31determination or administrative law judge disapproval.
115.32 Subd. 4. Exceptions.
115.33
116.1
116.2
116.3
116.4determination that the rule has been proposed pursuant to a specific federal statutory or
116.5regulatory mandate.
116.6
116.7another law specifying that the rulemaking procedures of this chapter do not apply.
116.8
116.9
116.10
116.11
116.12
116.13
116.14
116.15 Subd. 5. Severability. If an administrative law judge determines that part of a proposed
116.16rule
116.17that a severable portion of a proposed rule does not
116.18have a substantial economic impact, the administrative law judge may provide that the
116.19severable portion of the rule that does not
116.20impact may take effect without legislative approval.
116.21 Sec. 16. [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR
116.22REMODELING; LEGISLATIVE NOTICE AND REVIEW.
116.23 Subdivision 1. Definition. As used in this section, "residential construction" means the
116.24new construction or remodeling of any building subject to the Minnesota Residential Code.
116.25 Subd. 2. Impact on housing cost; agency determination. An agency must determine
116.26if implementation of a proposed rule, or any portion of a proposed rule, will, on average,
116.27increase the cost of residential construction or remodeling by $1,000 or more per unit. The
116.28agency must make this determination before the close of the hearing record. Upon request
116.29of a party affected by the proposed rule, an administrative law judge must review and
116.30approve or disapprove an agency's determination that any portion of a proposed rule will
116.31increase the cost of a dwelling unit by $1,000 or more.
116.32 Subd. 3. Notice to legislature; legislative approval. (a) If the agency determines that
116.33the impact of a proposed rule meets or exceeds the cost threshold provided in subdivision
117.12, or if the administrative law judge separately confirms the cost of any portion of a rule
117.2exceeds the cost threshold provided in subdivision 2, the agency must notify, in writing,
117.3the chairs and ranking minority members of the policy committees of the house of
117.4representatives and the senate with jurisdiction over the subject matter of the proposed rule
117.5within ten days of the determination.
117.6(b) If a committee of either the house of representatives or senate with jurisdiction over
117.7the subject matter of the proposed rule or a portion of a rule that meets or exceeds the
117.8threshold in subdivision 2 votes to advise an agency that the rule should not be adopted as
117.9proposed, the agency may not adopt the rule unless the rule is approved by a law enacted
117.10after the vote of the committee. Section 14.126, subdivision 2, applies to a vote of a
117.11committee under this subdivision.
117.12 Subd. 4. Severability. If the agency or an administrative law judge determines that part
117.13of a proposed rule meets or exceeds the threshold provided in subdivision 2, but that a
117.14severable portion of the proposed rule does not meet or exceed that threshold, the agency
117.15may proceed to adopt the severable portions of the proposed rule regardless of whether a
117.16legislative committee has voted under subdivision 3 to advise an agency that the rule should
117.17not be adopted as proposed.
117.18EFFECTIVE DATE.This section is effective August 1, 2017, and applies to
117.19administrative rules proposed on or after that date.
117.20 Sec. 17. [14.129] IMPACT ANALYSIS OF PROPOSED RULE.
117.21 Subdivision 1. Analysis. (a) Within 30 days of receipt of the notice required under
117.22section 14.116, paragraph (b), a standing committee with jurisdiction over the subject matter
117.23of a proposed rule may request the legislative auditor to conduct an impact analysis of the
117.24proposed rule. The request must be sent in writing to the legislative auditor and the agency.
117.25Upon receipt of the request, the agency may not proceed to adopt the proposed rule until it
117.26has received a positive declaration from the requesting standing committee. Within 60 days
117.27of receipt of a request, the legislative auditor shall convene a five-person peer review panel
117.28to review the proposed rule. The advisory panel must be made up of individuals who have
117.29not directly or indirectly been involved in work conducted or contracted by the agency and
117.30who are not employed by the agency. The panel may receive written and oral comments
117.31from the public during its review of the proposed rule. The panel must prepare a report that
117.32includes a conclusion on whether the proposed rule:
117.33(1) is based on sound, reasonably available scientific, technical, economic, and other
117.34information and rationale; and
118.1(2) if the proposed rule is more restrictive than a standard, limitation, or requirement
118.2imposed by federal law or rule pertaining to the same subject matter, a justification based
118.3on sound, reasonably available scientific, technical, economic, or other information and
118.4rationale that the more stringent standard is necessary to protect the public's health, safety,
118.5or welfare.
118.6(b) Within 150 days of being convened, the panel must submit its report to the chairs
118.7and ranking minority members of the requesting committee and the legislative auditor.
118.8Within five days of receipt of the panel's report, the requesting standing committee shall
118.9send the report to the agency along with either:
118.10(1) a positive declaration that the agency may proceed with the proposed rule; or
118.11(2) a negative declaration that the agency may not proceed with the proposed rule in its
118.12current form.
118.13(c) If the requesting standing committee issues a negative declaration to an agency under
118.14paragraph (b), clause (2), the agency may not adopt the rule until the legislature adjourns
118.15the annual legislative session that began after the issuance of the negative declaration.
118.16 Subd. 2. Severability. If any one or more provision, sentence, clause, phrase, or word
118.17in this section or the application thereof to any person or circumstance is found to be
118.18unconstitutional, the same is hereby declared to be severable and the balance of this section
118.19shall remain effective notwithstanding such unconstitutionality. The legislature hereby
118.20declares that it would have passed this section and each provision, sentence, clause, phrase,
118.21or word thereof irrespective of the fact that any one or more provision, sentence, clause,
118.22phrase, or word be declared unconstitutional.
118.23 Sec. 18. Minnesota Statutes 2016, section 14.131, is amended to read:
118.2414.131 STATEMENT OF NEED AND REASONABLENESS.
118.25By the date of the section
118.26and make available for public review a statement of the need for and reasonableness of the
118.27rule. The statement of need and reasonableness must be prepared under rules adopted by
118.28the chief administrative law judge and must include a citation to the most specific statutory
118.29authority for the rule and the following to the extent the agency, through reasonable effort,
118.30can ascertain this information:
118.31
118.32
118.33
119.1
119.2
119.3
119.4
119.5
119.6
119.7
119.8
119.9
119.10
119.11
119.12
119.13
119.14(1) a description of the persons or classifications of persons who will probably be affected
119.15by the proposed rule;
119.16(2) the probable costs of the rule to affected persons and the agency, including those
119.17costs or consequences borne by identifiable categories of affected parties, such as separate
119.18classes of government units, businesses, or individuals, and the probable benefits of adopting
119.19the rule;
119.20
119.21proposed federal
119.22Minnesota or within Environmental Protection Agency Region 5 and a specific analysis of
119.23the need for and reasonableness of each difference;
119.24
119.25
119.26other agency, and all federal regulations and local ordinances or regulations, related to the
119.27specific purpose for which the rule is being adopted; and
119.28(5) the agency's findings and conclusions that support its determination that the proposed
119.29rule is based on sound, reasonably available scientific, technical, economic, or other
119.30information and rationale; and if the proposed rule is more restrictive than a standard,
119.31limitation, or requirement imposed by federal law or rule pertaining to the same subject
119.32matter, a justification based on sound, reasonably available scientific, technical, economic,
120.1or other information and rationale that the more stringent standard is necessary to protect
120.2the public's health, safety, or welfare.
120.3The statement must describe how the agency, in developing the rules, considered and
120.4implemented the legislative policy supporting performance-based regulatory systems set
120.5forth in section
120.6For purposes of clause
120.7incremental impact of the proposed rule in addition to other rules, regardless of what state
120.8or federal agency has adopted the other rules. Cumulative effects can result from individually
120.9minor but collectively significant rules adopted over a period of time.
120.10
120.11
120.12
120.13The statement must describe, with reasonable particularity, the scientific, technical, and
120.14economic information that supports the proposed rule.
120.15The agency must consult with the commissioner of management and budget to help
120.16evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local
120.17government. The agency must send a copy of the statement of need and reasonableness to
120.18the Legislative Reference Library no later than when the notice of hearing is
120.19
120.20 Sec. 19. Minnesota Statutes 2016, section 14.14, subdivision 1a, is amended to read:
120.21 Subd. 1a. Notice of rule hearing. (a)
120.22
120.23
120.24
120.25
120.26
120.27
120.28agency shall, at least 30 days before the date set for the hearing, give notice of its intention
120.29to
120.30persons
120.31publication in the State Register.
121.1
121.2
121.3
121.4
121.5
121.6
121.7in the State Register must include the proposed rule or an amended rule in the form required
121.8by the revisor under section
121.9summary of the overall nature and effect of the proposed rule, a citation to the most specific
121.10statutory authority for the proposed rule, a statement of the place, date, and time of the
121.11public hearing, a statement that a free copy of the proposed rule and the statement of need
121.12and reasonableness may be requested from the agency, a statement that persons may register
121.13with the agency for the purpose of receiving notice of rule proceedings
121.14
121.15entire rule is proposed to be repealed, the agency need only publish that fact, along with an
121.16easily readable and understandable summary of the overall nature of the rules proposed for
121.17repeal, and a citation to the rule to be repealed.
121.18The mailed notice of hearing must be the same as the notice published in the State
121.19Register, except that the mailed notice may omit the text of the proposed rule if it includes
121.20an announcement of where a copy of the proposed rule may be obtained.
121.21(b) The chief administrative law judge may authorize an agency to omit from the notice
121.22of rule hearing the text of any proposed rule, the publication of which would be unduly
121.23cumbersome, expensive, or otherwise inexpedient if:
121.24(1) knowledge of the rule is likely to be important to only a small class of persons;
121.25(2) the notice of rule hearing states that a free copy of the entire rule is available upon
121.26request to the agency; and
121.27(3) the notice of rule hearing states in detail the specific subject matter of the omitted
121.28rule, cites the statutory authority for the proposed rule, and details the proposed rule's purpose
121.29and motivation.
121.30 Sec. 20. Minnesota Statutes 2016, section 14.14, subdivision 2a, is amended to read:
121.31 Subd. 2a. Hearing procedure. When a hearing is held on a proposed rule, it shall be
121.32conducted by an administrative law judge assigned by the chief administrative law judge.
121.33The administrative law judge shall ensure that all persons involved in the rule hearing are
122.1treated fairly and impartially. The agency shall submit into the record the jurisdictional
122.2documents, including the statement of need and reasonableness, comments and hearing
122.3requests received, and any written exhibits in support of the proposed rule. The agency may
122.4also present additional oral evidence. Interested persons may present written and oral
122.5evidence. The administrative law judge shall allow questioning of agency representatives
122.6or witnesses, or of interested persons making oral statements, in order to explain the purpose
122.7or intended operation of a proposed rule, or a suggested modification, or for other purposes
122.8if material to the evaluation or formulation of the proposed rule. The administrative law
122.9judge may limit repetitive or immaterial oral statements and questioning.
122.10 Sec. 21. Minnesota Statutes 2016, section 14.18, subdivision 1, is amended to read:
122.11 Subdivision 1. Generally. Unless a later date is required by section 14.126 or other law
122.12or is specified in the rule, a rule is effective after:
122.13(1) it has been subjected to all requirements described in sections
122.14
122.15(2) the notice of adoption is published in the State Register
122.16
122.17(3) it has been approved by a law enacted after publication of the notice of adoption
122.18any of the following applies:
122.19(i) the rule is enacted without a specific authorization of rulemaking to enact rules to
122.20implement a specific statute section;
122.21(ii) a sanction or penalty can be imposed for failure to comply with the rule; or
122.22(iii) the regulating agency has the authority to adjudicate a dispute with a regulated entity
122.23about enforcement of or violation of the rule.
122.24If the rule adopted is the same as the proposed rule, publication may be made by
122.25publishing notice in the State Register that the rule has been adopted as proposed and by
122.26citing the prior publication. If the rule adopted differs from the proposed rule, the portions
122.27of the adopted rule that differ from the proposed rule must be included in the notice of
122.28adoption together with a citation to the prior State Register publication of the remainder of
122.29the proposed rule. The nature of the modifications must be clear to a reasonable person
122.30when the notice of adoption is considered together with the State Register publication of
122.31the proposed rule, except that modifications may also be made that comply with the form
122.32requirements of section
123.1If the agency omitted from the notice of proposed rule adoption the text of the proposed
123.2rule, as permitted by section
123.3law judge may provide that the notice of the adopted rule need not include the text of any
123.4changes from the proposed rule. However, the notice of adoption must state in detail the
123.5substance of the changes made from the proposed rule, and must state that a free copy of
123.6the portion of the adopted rule that was the subject of the rulemaking proceeding, not
123.7including any material adopted by reference as permitted by section
123.8request to the agency.
123.9 Sec. 22. Minnesota Statutes 2016, section 14.19, is amended to read:
123.1014.19 DEADLINE TO COMPLETE RULEMAKING.
123.11Within 180 days after issuance of the administrative law judge's report or that of the
123.12chief administrative law judge, the agency shall submit its notice of adoption, amendment,
123.13or repeal to the State Register for publication. If the agency has not submitted its notice to
123.14the State Register within 180 days, the rule is automatically withdrawn. The agency may
123.15not adopt the withdrawn rules without again following the procedures of sections
123.17administrative law judge. The agency shall report to the Legislative Coordinating
123.18Commission, other appropriate committees of the legislature, and the governor its failure
123.19to adopt rules and the reasons for that failure. The 180-day time limit of this section does
123.20not include:
123.21(1) any days used for review by the chief administrative law judge or the commission
123.22if the review is required by law; or
123.23(2) days during which the rule cannot be adopted, because of votes by legislative
123.24committees under section
123.25
123.26
123.27 Sec. 23. Minnesota Statutes 2016, section 14.22, subdivision 1, is amended to read:
123.28 Subdivision 1. Contents. (a)
123.29
123.30
123.31give the notice required by this section, unless the agency gives notice of a hearing under
123.32section 14.14 or a notice under section 14.389, subdivision 2. The agency shall give notice
124.1
124.2United States mail or electronic mail to persons who have registered their names with the
124.3agency under section
124.4
124.5
124.6
124.7
124.8
124.9
124.10amended rule in the form required by the revisor under section
124.11and understandable summary of the overall nature and effect of the proposed rule
124.12to the most specific statutory authority for the proposed rule
124.13of the statement of need and reasonableness may be requested from the agency; a statement
124.14that persons may register with the agency
124.15rule proceedings
124.16
124.17be repealed, the notice need only state that fact, along with an easily readable and
124.18understandable summary of the overall nature of the
124.19citation to the rule to be repealed. The notice must include a statement advising the public:
124.20(1) that the public has at least 30 days in which to submit comment in support of or in
124.21opposition to the proposed rule and that comment is encouraged;
124.22(2) that each comment should identify the
124.23rule addressed, the reason for the comment, and any change proposed;
124.24(3) that the requester is encouraged to propose any change desired;
124.25
124.26the
124.27under section 14.14;
124.28
124.29rule, including the requirements contained in section 14.25 relating to a written request for
124.30a public hearing; and
124.31
124.32
124.33(6) that the agency may modify the proposed rule
124.34are supported by the data and views submitted
125.1
125.2
125.3
125.4In connection with the statements required in clauses (1) and
125.5also include the date on which the
125.6to adopt a rule must be the same as the notice published in the State Register, except that
125.7the mailed notice may omit the text of the proposed rule if it includes an announcement of
125.8where a copy of the proposed rule may be obtained.
125.9(b) The chief administrative law judge may authorize an agency to omit from the notice
125.10of intent to adopt the text of any proposed rule, the publication of which would be unduly
125.11cumbersome, expensive, or otherwise inexpedient if:
125.12(1) knowledge of the rule is likely to be important to only a small class of persons;
125.13(2) the notice of intent to adopt states that a free copy of the entire rule is available upon
125.14request to the agency; and
125.15(3) the notice of intent to adopt states in detail the specific subject matter of the omitted
125.16rule, cites the statutory authority for the proposed rule, and details the proposed rule's purpose
125.17and motivation.
125.18 Sec. 24. Minnesota Statutes 2016, section 14.23, is amended to read:
125.1914.23 STATEMENT OF NEED AND REASONABLENESS.
125.20By the date of the section
125.21reasonableness, which must be available to the public. The statement of need and
125.22reasonableness must include the
125.23
125.24
125.25
125.26
125.27
125.28The agency shall send a copy of the statement of need and reasonableness to the
125.29Legislative Reference Library no later than when the notice of intent to adopt is
126.1 Sec. 25. Minnesota Statutes 2016, section 14.25, subdivision 1, is amended to read:
126.2 Subdivision 1. Requests for hearing. If, during the
126.3under section 14.22, 25 or more persons submit to the agency a written request for a public
126.4hearing of the proposed rule, the agency shall proceed under the provisions of sections
126.5to
126.6(1) the name and address of the person requesting the public hearing;
126.7(2) the
126.8
126.9
126.10
126.11
126.12
126.13(3) the reasons for the objection to each portion of the rule identified.
126.14A written request for a public hearing that does not comply with the requirements of this
126.15section is invalid and may not be counted by the agency for purposes of determining whether
126.16a public hearing must be held. A written request for a public hearing is not invalid due to
126.17failure of the request to correctly identify the portion of the rule to which the person objects
126.18if the agency reasonably can determine which portion of the rule is the basis for the objection.
126.19 Sec. 26. Minnesota Statutes 2016, section 14.26, is amended to read:
126.2014.26 ADOPTION OF PROPOSED RULE; SUBMISSION TO ADMINISTRATIVE
126.21LAW JUDGE.
126.22 Subdivision 1. Submission. If no hearing is required, the agency shall submit to an
126.23administrative law judge assigned by the chief administrative law judge the proposed rule
126.24and notice as published, the rule as adopted, any written comments received by the agency,
126.25and a statement of need and reasonableness for the rule. The agency shall give notice to all
126.26persons who requested to be informed that these materials have been submitted to the
126.27administrative law judge. This notice must be given on the same day that the record is
126.28submitted. If the proposed rule has been modified, the notice must state that fact, and must
126.29also state that a free copy of the proposed rule, as modified, is available upon request from
126.30the agency. The rule and these materials must be submitted to the administrative law judge
126.31within 180 days of the day that the comment period for the rule is over or the rule is
126.32automatically withdrawn. The agency may not adopt the withdrawn rules without again
126.33following the procedures of sections
127.1if the noncompliance is approved by the chief administrative law judge. The agency shall
127.2report its failure to adopt the rules and the reasons for that failure to the Legislative
127.3Coordinating Commission, other appropriate legislative committees, and the governor.
127.4
127.5
127.6
127.7
127.8
127.9
127.10
127.11 Subd. 3. Review.
127.12administrative law judge shall approve or disapprove the rule as to its legality and its form
127.13to the extent that the form relates to legality, including the issues of whether the rule if
127.14modified is substantially different, as determined under section
127.15the rule as originally proposed, whether the agency has the authority to adopt the rule, and
127.16whether the record demonstrates a rational basis for the need for and reasonableness of the
127.17proposed rule.
127.18
127.19
127.20
127.21state in writing the reasons for the disapproval and make recommendations to overcome
127.22the defects.
127.23 Subd. 3b. Harmless error. The administrative law judge shall disregard any error or
127.24defect in the proceeding due to the agency's failure to satisfy any procedural requirements
127.25imposed by law or rule if the administrative law judge finds:
127.26(1) that the failure did not deprive any person or entity of an opportunity to participate
127.27meaningfully in the rulemaking process; or
127.28(2) that the agency has taken corrective action to cure the error or defect so that the
127.29failure did not deprive any person or entity of an opportunity to participate meaningfully
127.30in the rulemaking process.
127.31 Subd. 3c. Correction of defects.
127.32the chief administrative law judge for approval. If the chief administrative law judge approves
127.33of the findings of the administrative law judge, the chief administrative law judge shall send
127.34the statement of the reasons for disapproval of the rule to the agency, the Legislative
128.1Coordinating Commission, the house of representatives and senate policy committees with
128.2primary jurisdiction over state governmental operations, and the revisor of statutes and
128.3advise the agency and the revisor of statutes of actions that will correct the defects. The rule
128.4may not be filed in the Office of the Secretary of State, nor be published, until the chief
128.5administrative law judge determines that the defects have been corrected or, if applicable,
128.6that the agency has satisfied the rule requirements for the adoption of a substantially different
128.7rule.
128.8(b) The agency may resubmit the disapproved rule under paragraph (a) to the chief
128.9administrative law judge after correcting the defects. If the 180-day period expires while
128.10the chief administrative law judge is reviewing the rule, the agency may resubmit the rule
128.11within 30 days of the date the agency received written notice of disapproval. In all other
128.12cases, the agency may resubmit the rule at any time before the expiration of the 180-day
128.13period in subdivision 1. If the resubmitted rule is disapproved by the chief administrative
128.14law judge, the rule is withdrawn. If the agency does not resubmit a portion of the rule, it
128.15may not adopt that portion of the rule without again following the procedures of sections
128.1614.14 to 14.28.
128.17 Subd. 3d. Need or reasonableness not established.
128.18judge determines that the need for or reasonableness of the rule has not been established,
128.19and if the agency does not elect to follow the suggested actions of the chief administrative
128.20law judge to correct that defect, then the agency shall submit the proposed rule to the
128.21Legislative Coordinating Commission and to the house of representatives and senate policy
128.22committees with primary jurisdiction over state governmental operations for advice and
128.23comment. The agency may not adopt the rule until it has received and considered the advice
128.24of the commission and committees. However, the agency need not wait for advice for more
128.25than 60 days after the commission and committees have received the agency's submission.
128.26
128.27
128.28
128.29
128.30
128.31
128.32
128.33
129.1
129.2
129.3
129.4
129.5
129.6
129.7
129.8
129.9 Subd. 5. Filing. If the rule is approved, the chief administrative law judge shall promptly
129.10file four paper copies or an electronic copy of it in the Office of the Secretary of State. The
129.11secretary of state shall forward one copy of the rule to the revisor of statutes, one copy to
129.12the agency, and one copy to the governor.
129.13 Subd. 6. Costs. The Office of Administrative Hearings shall assess an agency for the
129.14actual cost of processing rules under this section. Each agency shall include in its budget
129.15money to pay the assessment. Receipts from the assessment must be deposited in the
129.16administrative hearings account created in section
129.17 Sec. 27. Minnesota Statutes 2016, section 14.27, is amended to read:
129.1814.27 PUBLICATION OF ADOPTED RULE; EFFECTIVE DATE.
129.19(a) Except as provided in paragraph (b), the rule is effective
129.20the notice of adoption in the State Register in the same manner as provided for adopted
129.21rules in section
129.22(b) A rule is effective after publication of the notice of adoption in the State Register
129.23and after approval by law in the same manner as provided for adopted rules in section 14.18,
129.24if any of the following applies:
129.25(1) the rule is enacted without a specific authorization of rulemaking to enact rules to
129.26implement a specific statute section;
129.27(2) a sanction or penalty can be imposed for failure to comply with the rule; or
129.28(3) the regulating agency has the authority to adjudicate a dispute with a regulated entity
129.29about enforcement of or violation of the rule.
129.30EFFECTIVE DATE.This section is effective the day following final enactment and
129.31applies to rules for which a notice of adoption is published on or after that date.
130.1 Sec. 28. Minnesota Statutes 2016, section 14.365, is amended to read:
130.214.365 OFFICIAL RULEMAKING RECORD.
130.3The agency shall maintain the official rulemaking record for every rule adopted under
130.4sections
130.5record required by this section constitutes the official and exclusive agency rulemaking
130.6record with respect to agency action on or judicial review of the rule. The record must
130.7contain:
130.8(1) copies of all publications in the State Register pertaining to the rule;
130.9(2) all written petitions, and all requests, submissions, or comments received by the
130.10agency or the administrative law judge after publication of the notice of intent to adopt or
130.11the notice of hearing in the State Register pertaining to the rule;
130.12(3) the statement of need and reasonableness for the rule;
130.13(4) any report prepared by the peer review panel pursuant to section 14.129;
130.14
130.15hearing if a transcript was not prepared;
130.16
130.17
130.20
130.21of approval or disapproval by the chief administrative law judge, if any;
130.22
130.23Hearings;
130.24
130.25
130.26
130.27 Sec. 29. Minnesota Statutes 2016, section 14.381, subdivision 3, is amended to read:
130.28 Subd. 3. Costs. The agency is liable for all Office of Administrative Hearings costs
130.29associated with review of the petition. If the administrative law judge rules in favor of the
130.30agency, the agency may recover all or a portion of the costs from the petitioner unless the
131.1petitioner is entitled to proceed in forma pauperis under section
131.2law judge determines that the petition was brought in good faith and that an assessment of
131.3the costs would constitute an undue hardship for the petitioner.
131.4
131.5
131.6
131.7
131.8
131.9 Sec. 30. Minnesota Statutes 2016, section 14.388, subdivision 1, is amended to read:
131.10 Subdivision 1. Requirements. If an agency for good cause finds that the rulemaking
131.11provisions of this chapter are unnecessary, impracticable, or contrary to the public interest
131.12when adopting, amending, or repealing a rule to:
131.13(1) address a serious and immediate threat to the public health, safety, or welfare;
131.14(2) comply with a court order or a requirement in federal law in a manner that does not
131.15allow for compliance with sections
131.16(3) incorporate specific changes set forth in applicable statutes when no interpretation
131.17of law is required; or
131.18(4) make changes that do not alter the sense, meaning, or effect of a rule,
131.19the agency may adopt, amend, or repeal the rule after satisfying the requirements of
131.20subdivision 2 and section
131.21incorporate its findings and a brief statement of its supporting reasons in its order adopting,
131.22amending, or repealing the rule.
131.23After considering the agency's statement and any comments received, the Office of
131.24Administrative Hearings shall determine whether the agency has provided adequate
131.25justification for its use of this section.
131.26Rules adopted, amended, or repealed under
131.27a period of two years from the date of publication of the rule in the State Register.
131.28Rules adopted, amended, or repealed under clause (2), (3), or (4) are effective upon
131.29publication in the State Register.
132.1 Sec. 31. Minnesota Statutes 2016, section 14.388, subdivision 2, is amended to read:
132.2 Subd. 2. Notice. An agency proposing to adopt, amend, or repeal a rule under this section
132.3must give notice to the chairs and ranking minority members of the legislative policy and
132.4budget committees with jurisdiction over the subject matter of the proposed rules and to
132.5the Legislative Coordinating Commission, must give electronic notice of its intent in
132.6accordance with section
132.7or electronic mail to persons who have registered their names with the agency under section
132.9the proposed rule to the Office of Administrative Hearings for review of its legality and
132.10must include:
132.11(1) the proposed rule, amendment, or repeal;
132.12(2) an explanation of why the rule meets the requirements of the good cause exemption
132.13under subdivision 1; and
132.14(3) a statement that interested parties have five business days after the date of the notice
132.15to submit comments to the Office of Administrative Hearings.
132.16 Sec. 32. Minnesota Statutes 2016, section 14.389, subdivision 3, is amended to read:
132.17 Subd. 3. Adoption. (a) The agency may modify a proposed rule if the modifications do
132.18not result in a substantially different rule, as defined in section
132.19paragraphs (b) and (c). If the final rule is identical to the rule originally published in the
132.20State Register, the agency must publish a notice of adoption in the State Register. If the
132.21final rule is different from the rule originally published in the State Register, the agency
132.22must publish a copy of the changes in the State Register. The agency must also file a copy
132.23of the rule with the governor.
132.24(b) Except as provided in paragraph (c), the rule is effective upon publication in the
132.25State Register.
132.26(c) The rule is effective upon publication of the notice of adoption if it has been approved
132.27by a law enacted after publication of the notice of adoption, if any of the following applies:
132.28(1) the rule is enacted without a specific authorization of rulemaking to enact rules to
132.29implement a specific statute section;
132.30(2) a sanction or penalty can be imposed for failure to comply with the rule; or
132.31(3) the regulating agency has the authority to adjudicate a dispute with a regulated entity
132.32about enforcement of or violation of the rule.
133.1EFFECTIVE DATE.This section is effective the day following final enactment and
133.2applies to rules for which a notice of adoption is published on or after that date.
133.3 Sec. 33. Minnesota Statutes 2016, section 14.44, is amended to read:
133.414.44 DETERMINATION OF VALIDITY OF RULE.
133.5(a) The validity of any rule, or the validity of any agency policy, guideline, bulletin,
133.6criterion, manual standard, or similar pronouncement that the petitioner believes is a rule
133.7as defined in section 14.02, subdivision 4, may be determined upon the petition for a
133.8declaratory judgment thereon, addressed to the Court of Appeals, when it appears that the
133.9rule or pronouncement, or its threatened application, interferes with or impairs, or threatens
133.10to interfere with or impair the legal rights or privileges of the petitioner. The agency shall
133.11be made a party to the proceeding. The declaratory judgment may be rendered whether or
133.12not the petitioner has first requested the agency to pass upon the validity of the rule in
133.13question, whether or not the petitioner has petitioned the Office of Administrative Hearings
133.14under section 14.381, and whether or not the agency has commenced an action against the
133.15petitioner to enforce the rule.
133.16(b) If the subject of the petition is an agency policy, guideline, bulletin, criterion, manual
133.17standard, or similar pronouncement, the agency must cease enforcement of the
133.18pronouncement upon filing of the petition until the Court of Appeals rules on the matter.
133.19The agency is liable for all costs associated with review of the petition. If the Court of
133.20Appeals rules in favor of the agency, the agency may recover all or a portion of the cost
133.21from the petitioner unless the petitioner is entitled to proceed in a forma pauperis under
133.22section 563.01, or the court determines that the petition was brought in good faith or the
133.23assessment of the costs would constitute an undue hardship for the petitioner.
133.24 Sec. 34. Minnesota Statutes 2016, section 14.45, is amended to read:
133.2514.45 RULE DECLARED INVALID.
133.26In proceedings under section
133.27guideline, bulletin, criterion, manual standard, or similar pronouncement invalid if it finds
133.28that it violates constitutional provisions or exceeds the statutory authority of the agency or
133.29if the rule was adopted or the policy, guideline, bulletin, criterion, manual standard, or
133.30similar pronouncement was improperly implemented without compliance with statutory
133.31rulemaking procedures. Any party to proceedings under section
133.32may appeal an adverse decision of the Court of Appeals to the Supreme Court as in other
133.33civil cases.
134.1 Sec. 35. Minnesota Statutes 2016, section 14.51, is amended to read:
134.214.51 PROCEDURAL RULES.
134.3The chief administrative law judge shall adopt rules to govern: (1) the procedural conduct
134.4of all hearings, relating to both rule adoption, amendment, suspension or repeal hearings,
134.5contested case hearings, and workers' compensation hearings, and to govern the conduct of
134.6voluntary mediation sessions for rulemaking and contested cases other than those within
134.7the jurisdiction of the Bureau of Mediation Services; and (2) the review of rules adopted
134.8without a public hearing. The chief administrative law judge may adopt rules to govern the
134.9procedural conduct of other hearings conducted by the Office of Administrative Hearings.
134.10The procedural rules shall be binding upon all agencies and shall supersede any other agency
134.11procedural rules with which they may be in conflict. The procedural rules shall include in
134.12addition to normal procedural matters provisions relating to the procedure to be followed
134.13when the proposed final rule of an agency is substantially different, as determined under
134.14section
134.15establish a procedure whereby the proposed final rule of an agency shall be reviewed by
134.16the chief administrative law judge on the issue of whether the proposed final rule of the
134.17agency is substantially different than that which was proposed or failure of the agency to
134.18meet the requirements of chapter 14. The rules must also provide: (1) an expedited procedure,
134.19consistent with section
134.20rules by agencies; and (2) a procedure to allow an agency to receive prior binding approval
134.21of its plan regarding the additional notice contemplated under sections
134.23or upon written request of an interested party, the chief administrative law judge may issue
134.24a subpoena for the attendance of a witness or the production of books, papers, records or
134.25other documents as are material to any matter being heard by the Office of Administrative
134.26Hearings. The subpoenas shall be enforceable through the district court in the district in
134.27which the subpoena is issued.
134.28 Sec. 36. Minnesota Statutes 2016, section 14.57, is amended to read:
134.2914.57 INITIATION; DECISION; AGREEMENT TO ARBITRATE.
134.30(a) An agency shall initiate a contested case proceeding when one is required by law.
134.31
134.32the Office of Administrative Hearings for disposition in accordance with the contested case
134.33procedures of the Administrative Procedure Act. Upon initiation of a contested case
135.1proceeding,
135.2law judge constitutes the final decision in the case.
135.3(b) As an alternative to initiating or continuing with a contested case proceeding, the
135.4parties, subsequent to agency approval, may enter into a written agreement to submit the
135.5issues raised to arbitration by an administrative law judge according to sections
135.6to
135.7EFFECTIVE DATE.This section is effective August 1, 2017, and applies to contested
135.8cases initiated on or after that date.
135.9 Sec. 37. [14.605] AFFIRMATIVE DEFENSE.
135.10In a contested case or any other action to enforce a rule or to sanction or penalize a
135.11person for violation of a rule, a person shall have an affirmative defense if the person shows
135.12by a preponderance of the evidence that the cost for the person to comply with the rule
135.13exceeds $50,000.
135.14EFFECTIVE DATE.This section is effective the day following final enactment and
135.15applies to rules for which a notice of adoption is published on or after that date.
135.16 Sec. 38. MINNESOTA ADMINISTRATIVE RULES STATUS SYSTEM (MARSS)
135.17WORKING GROUP.
135.18 Subdivision 1. Creation. The MARSS working group consists of the following nine
135.19members:
135.20(1) the chief judge of the Office of Administrative Hearings, or a designee;
135.21(2) the secretary of state, or a designee;
135.22(3) a representative from the Interagency Rules Committee (IRC) appointed by the
135.23committee;
135.24(4) a representative from each of the following agencies with rulemaking experience
135.25appointed by the appropriate commissioner:
135.26(i) the Department of Health;
135.27(ii) the Minnesota Pollution Control Agency;
135.28(iii) the Department of Transportation; and
135.29(iv) the Department of Labor and Industry;
135.30(5) as designated by the IRC, a representative from a health-related board; and
136.1(6) as designated by the IRC, a representative from a non-health-related board.
136.2 Subd. 2. MARSS description. The Minnesota Administrative Rules Status System
136.3(MARSS) is a concept for a new software application. The application would be built and
136.4maintained by the Revisor's Office. Executive branch agencies and others would upload
136.5official rulemaking record documents to the system. The goal is to improve public access,
136.6security, preservation, and transparency of state agencies' official rulemaking records through
136.7the creation of a single online records system. The system would serve as a single Internet
136.8location for the public to track rulemaking progress and access the official rulemaking
136.9record. Agencies would fulfill their requirement to maintain and preserve the official
136.10rulemaking record by submitting required documents to the revisor for inclusion in the
136.11online records system.
136.12 Subd. 3. Duties. The working group must report by February 1, 2018, to the chairs and
136.13ranking minority members of the committees in the house of representatives and senate
136.14with jurisdiction over policy and finance for the legislature. The report must identify the
136.15functional and nonfunctional requirements of the MARSS system. The working group must
136.16define a funding mechanism to share the cost to build and maintain the MARSS system
136.17among state agencies and departments.
136.18 Subd. 4. Administration provisions. (a) The revisor of statutes or the revisor's designee
136.19must convene the initial meeting of the working group by August 1, 2017. Upon request of
136.20the working group, the revisor must provide meeting space and administrative services for
136.21the group.
136.22(b) The working group must elect a chair from among its members at the first meeting.
136.23(c) Members serve without compensation and without reimbursement for expenses.
136.24(d) The working group expires on February 1, 2018, or upon submission of documents
136.25fulfilling its duties, whichever is earlier.
136.26 Subd. 5. Deadline for appointments and designations. The appointments and
136.27designations authorized by this section must be completed by July 1, 2017.
136.28 Sec. 39. REVISOR'S INSTRUCTION.
136.29By January 15, 2018, the revisor of statutes shall present a bill to the legislature to make
136.30the conforming statutory changes to incorporate changes in this article to the contested case
136.31procedures under Minnesota Statutes, section 14.57.
137.1 Sec. 40. REPEALER.
137.2Minnesota Statutes 2016, section 14.05, subdivision 5, is repealed.
137.3 Sec. 41. EFFECTIVE DATE; APPLICATION.
137.4Except where otherwise provided, this article is effective August 1, 2017, and applies
137.5to rules for which a notice of hearing under Minnesota Statutes, section 14.14; a notice of
137.6intent to adopt under Minnesota Statutes, section 14.22; or a dual notice under Minnesota
137.7Statutes, section 14.225, is published in the State Register on or after that date.
137.10 Section 1. Minnesota Statutes 2016, section 190.19, subdivision 2, is amended to read:
137.11 Subd. 2. Uses. (a) Money appropriated from the Minnesota "Support Our Troops" account
137.12to the Department of Military Affairs may be used for:
137.13 (1) grants directly to eligible individuals;
137.14 (2) grants to one or more eligible foundations for the purpose of making grants to eligible
137.15individuals, as provided in this section;
137.16 (3) veterans' services; or
137.17 (4) grants to family readiness groups chartered by the adjutant general.
137.18 (b) As used in paragraph (a), the term "eligible individual" includes any person who is:
137.19 (1) a member in good standing of the Minnesota National Guard or a reserve unit based
137.20in Minnesota
137.21
137.22 (2) a Minnesota resident who is a member of a military reserve unit not based in
137.23Minnesota, if the member is called to active service as defined in section
137.245
137.25 (3) any other Minnesota resident performing active service for any branch of the military
137.26of the United States;
137.27 (4) a person who honorably served in one of the capacities listed in clause (1), (2), or
137.28(3) who has current financial needs
137.29 (5) a member of the immediate family of an individual identified in clause (1), (2), (3),
137.30or (4). For purposes of this clause, "immediate family" means the individual's spouse and
138.1minor children and, if they are dependents of the member of the military, the member's
138.2parents, grandparents, siblings, stepchildren, and adult children.
138.3 (c) As used in paragraph (a), the term "eligible foundation" includes any organization
138.4that:
138.5 (1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code;
138.6 (2) has articles of incorporation under chapter 317A specifying the purpose of the
138.7organization as including the provision of financial assistance to members of the Minnesota
138.8National Guard and other United States armed forces reserves and their families and
138.9survivors; and
138.10 (3) agrees in writing to distribute any grant money received from the adjutant general
138.11under this section to eligible individuals as defined in this section and in accordance with
138.12any written policies and rules the adjutant general may impose as conditions of the grant to
138.13the foundation.
138.14 (d) The maximum grant awarded to an eligible individual under paragraph (a) in a
138.15calendar year with funds from the Minnesota "Support Our Troops" account, either through
138.16an eligible institution or directly from the adjutant general, may not exceed
138.17 Sec. 2. Minnesota Statutes 2016, section 190.19, subdivision 2a, is amended to read:
138.18 Subd. 2a. Uses; veterans. (a) Money appropriated to the Department of Veterans Affairs
138.19from the Minnesota "Support Our Troops" account may be used for:
138.20 (1) grants to veterans service organizations;
138.21 (2) outreach to underserved veterans;
138.22(3) providing services and programs for veterans and their families;
138.23(4) transfers to the vehicle services account for Gold Star license plates under section
138.25(5) grants of up to $100,000 to any organization approved by the commissioner of
138.26veterans affairs for the purpose of supporting and improving the lives of veterans and their
138.27families;
138.28(6) grants to an eligible foundation
138.29(7) the agency's uncompensated burial costs for eligible dependents to whom the
138.30commissioner grants a no-fee or reduced-fee burial in the state's veteran cemeteries pursuant
138.31to section 197.236, subdivision 9, paragraph (b).
139.1(b) For purposes of this subdivision, "eligible foundation" includes any organization
139.2that:
139.3(1) is a tax-exempt organization under section 501(c) of the Internal Revenue Code; and
139.4(2) is a nonprofit corporation under chapter 317A and the organization's articles of
139.5incorporation specify that a purpose of the organization includes: (i) providing assistance
139.6to veterans and their families; or (ii) enhancing the lives of veterans and their families.
139.7 Sec. 3. Minnesota Statutes 2016, section 196.05, subdivision 1, is amended to read:
139.8 Subdivision 1. General duties. The commissioner shall:
139.9 (1) act as the agent of a resident of the state having a claim against the United States for
139.10benefits arising out of or by reason of service in the armed forces and prosecute the claim
139.11without charge;
139.12 (2) act as custodian of veterans' bonus records;
139.13 (3) administer the laws relating to the providing of bronze flag holders at veterans' graves
139.14for memorial purposes;
139.15 (4) administer the laws relating to recreational or rest camps for veterans so far as
139.16applicable to state agencies;
139.17 (5) administer the state soldiers' assistance fund and veterans' relief fund and other funds
139.18appropriated for the payment of bonuses or other benefits to veterans or for the rehabilitation
139.19of veterans;
139.20 (6) cooperate with national, state, county, municipal, and private social agencies in
139.21securing to veterans and their dependents the benefits provided by national, state, and county
139.22laws, municipal ordinances, or public and private social agencies;
139.23 (7) provide necessary assistance where other adequate aid is not available to the dependent
139.24family of a veteran while the veteran is hospitalized and after the veteran is released for as
139.25long a period as is necessary as determined by the commissioner;
139.26 (8) cooperate with United States governmental agencies providing compensation,
139.27pensions, insurance, or other benefits provided by federal law, by supplementing the benefits
139.28prescribed therein, when conditions in an individual case make it necessary;
139.29 (9) assist dependent family members of military personnel who are called from reserve
139.30status to extended federal active duty during a time of war or national emergency through
139.31the state soldiers' assistance fund provided by section
140.1 (10) exercise other powers as may be authorized and necessary to carry out the provisions
140.2of this chapter and chapter 197, consistent with that chapter;
140.3 (11) provide information, referral, and counseling services to those veterans who may
140.4have suffered adverse health conditions as a result of possible exposure to chemical agents
140.5and
140.6(12) in coordination with the Minnesota Association of County Veterans Service Officers,
140.7develop a written disclosure statement for use by private providers of veterans benefits
140.8services as required under section 197.6091. At a minimum, the written disclosure statement
140.9shall include a signature line, contact information for the department, and a statement that
140.10veterans benefits services are offered at no cost by federally chartered veterans service
140.11organizations and by county veterans service officers.
140.12 Sec. 4. Minnesota Statutes 2016, section 197.236, subdivision 9, is amended to read:
140.13 Subd. 9. Burial fees. (a) The commissioner of veterans affairs shall establish a fee
140.14schedule, which may be adjusted from time to time, for the interment of eligible spouses
140.15and dependent children. The fees shall cover as nearly as practicable the actual costs of
140.16interment, excluding the value of the plot.
140.17 (b) Upon application, the commissioner may waive or reduce the burial fee
140.18
140.19standards, and application form for requests to waive or reduce the burial fee to indigent
140.20eligible applicants.
140.21 (c) No plot or interment fees may be charged for the burial of service members who die
140.22on active duty or eligible veterans, as defined in United States Code, title 38, section 101,
140.23paragraph (2).
140.24 Sec. 5. [197.6091] VETERANS BENEFITS SERVICES; DISCLOSURE
140.25REQUIREMENTS.
140.26 Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
140.27the meanings given.
140.28(b)(1) "Advertising" or "advertisement" means any of the following:
140.29(i) any written or printed communication made for the purpose of soliciting business for
140.30veterans benefits appeal services, including but not limited to a brochure, letter, pamphlet,
140.31newspaper, telephone listing, periodical, or other writing;
141.1(ii) any directory listing caused or permitted by a person and made available by that
141.2person indicating that veterans benefits appeal services are being offered; or
141.3(iii) any radio, television, computer network, or similar airwave or electronic transmission
141.4that solicits business for or promotes a person offering veterans benefits appeal services.
141.5(2) "Advertising" or "advertisement" does not include any of the following:
141.6(i) any printing or writing used on buildings, uniforms, or badges, where the purpose of
141.7the writing is for identification; or
141.8(ii) any printing or writing in a memorandum or other communication used in the ordinary
141.9course of business where the sole purpose of the writing is other than soliciting business
141.10for veterans benefits appeal services.
141.11(c) "Veterans benefits appeal services" means services that a veteran might reasonably
141.12require in order to appeal a denial of federal or state veterans benefits, including but not
141.13limited to denials of disability, limited income, home loan, insurance, education and training,
141.14burial and memorial, and dependent and survivor benefits.
141.15(d) "Veterans benefits services" means services that a veteran or a family member of a
141.16veteran might reasonably use in order to obtain federal, state, or county veterans benefits.
141.17(e) "Written disclosure statement" means the written disclosure statement developed by
141.18the commissioner of veterans affairs pursuant to section 196.05, subdivision 1.
141.19 Subd. 2. Advertising disclosure requirements. A person advertising veterans benefits
141.20appeal services must conspicuously disclose in the advertisement, in similar type size or
141.21voice-over, that veterans benefits appeal services are also offered at no cost by county
141.22veterans service officers under sections 197.603 and 197.604.
141.23 Subd. 3. Veterans benefits services disclosure requirements. A person who provides
141.24veterans benefits services in exchange for compensation shall provide a written disclosure
141.25statement to each client or prospective client. Before a person enters into an agreement to
141.26provide veterans benefits services or accepts money or any other thing of value for the
141.27provision of veterans benefits services, the person must obtain the signature of the client
141.28on a written disclosure statement containing an attestation by the client that the client has
141.29read and understands the written disclosure statement.
141.30 Subd. 4. Violations; penalties. A person who fails to comply with this section is subject
141.31to a civil penalty not to exceed $1,000 for each violation. Civil penalties shall be assessed
141.32by the district court in an action initiated by the attorney general. For the purposes of
141.33computing the amount of each civil penalty, each day of a continuing violation constitutes
142.1a separate violation. Additionally, the attorney general may accept a civil penalty as
142.2determined by the attorney general in settlement of an investigation of a violation of this
142.3section regardless of whether an action has been filed under this section. Any civil penalty
142.4recovered shall be deposited in the Support Our Troops account established under section
142.5190.19.
142.6 Subd. 5. Nonapplicability. This section does not apply to the owner or personnel of any
142.7medium in which an advertisement appears or through which an advertisement is
142.8disseminated.
142.9 Sec. 6. Minnesota Statutes 2016, section 197.791, subdivision 2, is amended to read:
142.10 Subd. 2. Program established. The Minnesota GI Bill program is established to provide
142.11postsecondary educational assistance, apprenticeship and on-the-job training benefits, and
142.12other professional and educational benefits to eligible Minnesota veterans and to the children
142.13and spouses of deceased and severely disabled Minnesota veterans.
142.14 The commissioner, in cooperation with eligible postsecondary educational institutions,
142.15shall administer the program for the purpose of providing postsecondary educational
142.16assistance to eligible persons in accordance with this section. Each public postsecondary
142.17educational institution in the state must participate in the program and each private
142.18postsecondary educational institution in the state is encouraged to participate in the program.
142.19Any participating private institution may suspend or terminate its participation in the program
142.20at the end of any semester or other academic term.
142.21 Sec. 7. Minnesota Statutes 2016, section 197.791, subdivision 3, is amended to read:
142.22 Subd. 3. Duties; responsibilities. (a) The commissioner shall establish policies and
142.23procedures including, but not limited to, procedures for student application record keeping,
142.24information sharing, payment of educational assistance benefits under subdivision 5, payment
142.25of apprenticeship or on-the-job training benefits under subdivision 5a, payment of other
142.26educational or professional benefits under subdivision 5, and other procedures the
142.27commissioner considers appropriate and necessary for effective and efficient administration
142.28of the program established in this section.
142.29 (b) The commissioner may delegate part or all of the administrative procedures for the
142.30program to responsible representatives of participating eligible institutions. The commissioner
142.31may execute an interagency agreement with the Minnesota Office of Higher Education for
142.32services the commissioner determines necessary to administer the program.
143.1 Sec. 8. Minnesota Statutes 2016, section 197.791, subdivision 4, is amended to read:
143.2 Subd. 4. Eligibility. (a) A person is eligible for educational assistance under
143.3subdivisions 5 and 5a if:
143.4 (1) the person is:
143.5 (i) a veteran who is serving or has served honorably in any branch or unit of the United
143.6States armed forces at any time;
143.7 (ii) a nonveteran who has served honorably for a total of five years or more cumulatively
143.8as a member of the Minnesota National Guard or any other active or reserve component of
143.9the United States armed forces, and any part of that service occurred on or after September
143.1011, 2001;
143.11 (iii) the surviving spouse or child of a person who has served in the military and who
143.12has died as a direct result of that military service, only if the surviving spouse or child is
143.13eligible to receive federal education benefits under United States Code, title 38, chapter 33,
143.14as amended, or United States Code, title 38, chapter 35, as amended; or
143.15 (iv) the spouse or child of a person who has served in the military at any time and who
143.16has a total and permanent service-connected disability as rated by the United States Veterans
143.17Administration, only if the spouse or child is eligible to receive federal education benefits
143.18under United States Code, title 38, chapter 33, as amended, or United States Code, title 38,
143.19chapter 35, as amended; and
143.20 (2) the person receiving the educational assistance is a Minnesota resident, as defined
143.21in section
143.22 (3) the person receiving the educational assistance:
143.23 (i) is an undergraduate or graduate student at an eligible institution;
143.24 (ii) is maintaining satisfactory academic progress as defined by the institution for students
143.25participating in federal Title IV programs;
143.26 (iii) is enrolled in an education program leading to a certificate, diploma, or degree at
143.27an eligible institution;
143.28 (iv) has applied for educational assistance under this section prior to the end of the
143.29academic term for which the assistance is being requested;
143.30 (v) is in compliance with child support payment requirements under section
143.31subdivision 2
144.1 (vi) has completed the Free Application for Federal Student Aid (FAFSA).
144.2 (b) A person's eligibility terminates when the person becomes eligible for benefits under
144.3section
144.4 (c) To determine eligibility, the commissioner may require official documentation,
144.5including the person's federal form DD-214 or other official military discharge papers;
144.6correspondence from the United States Veterans Administration; birth certificate; marriage
144.7certificate; proof of enrollment at an eligible institution; signed affidavits; proof of residency;
144.8proof of identity; or any other official documentation the commissioner considers necessary
144.9to determine eligibility.
144.10 (d) The commissioner may deny eligibility or terminate benefits under this section to
144.11any person who has not provided sufficient documentation to determine eligibility for the
144.12program. An applicant may appeal the commissioner's eligibility determination or termination
144.13of benefits in writing to the commissioner at any time. The commissioner must rule on any
144.14application or appeal within 30 days of receipt of all documentation that the commissioner
144.15requires. The decision of the commissioner regarding an appeal is final. However, an
144.16applicant whose appeal of an eligibility determination has been rejected by the commissioner
144.17may submit an additional appeal of that determination in writing to the commissioner at
144.18any time that the applicant is able to provide substantively significant additional information
144.19regarding the applicant's eligibility for the program. An approval of an applicant's eligibility
144.20by the commissioner following an appeal by the applicant is not retroactively effective for
144.21more than one year or the semester of the person's original application, whichever is later.
144.22 (e) Upon receiving an application with insufficient documentation to determine eligibility,
144.23the commissioner must notify the applicant within 30 days of receipt of the application that
144.24the application is being suspended pending receipt by the commissioner of sufficient
144.25documentation from the applicant to determine eligibility.
144.26 Sec. 9. Minnesota Statutes 2016, section 197.791, subdivision 5, is amended to read:
144.27 Subd. 5.
144.28of eligibility for the program, the applicant shall be awarded, on a funds-available basis,
144.29the educational assistance under the program for use at any time according to program rules
144.30at any eligible institution.
144.31 (b) The amount of educational assistance in any semester or term for an eligible person
144.32must be determined by subtracting from the eligible person's cost of attendance the amount
144.33the person received or was eligible to receive in that semester or term from:
145.1 (1) the federal Pell Grant;
145.2 (2) the state grant program under section
145.3 (3) any federal military or veterans educational benefits including but not limited to the
145.4Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, vocational
145.5rehabilitation benefits, and any other federal benefits associated with the person's status as
145.6a veteran, except veterans disability payments from the United States Veterans Administration
145.7and payments made under the Veterans Retraining Assistance Program (VRAP).
145.8 (c) The amount of educational assistance for any eligible person who is a full-time
145.9student must not exceed the following:
145.10
145.11
145.12
145.13(d) A person eligible under this subdivision may use the benefit amounts for the following
145.14purposes:
145.15(1) licensing or certification tests, the successful completion of which demonstrates an
145.16individual's possession of the knowledge or skill required to enter into, maintain, or advance
145.17in employment in a predetermined and identified vocation or profession, provided that the
145.18tests and the licensing or credentialing organizations or entities that offer the tests are
145.19approved by the commissioner;
145.20(2) tests for admission to institutions of higher learning or graduate schools;
145.21(3) national tests providing an opportunity for course credit at institutions of higher
145.22learning;
145.23(4) a preparatory course for a test that is required or used for admission to an institution
145.24of higher education or a graduate program; and
145.25(5) any fee associated with the pursuit of a professional or educational objective specified
145.26in clauses (1) to (4).
145.27(e) If an eligible person receives benefits under subdivision 5, the eligible person's
145.28aggregate benefits under this subdivision and subdivision 5 must not exceed $10,000 in the
145.29eligible person's lifetime.
146.1(f) If an eligible person receives benefits under subdivision 5a, the eligible person's
146.2aggregate benefits under this subdivision and subdivision 5a must not exceed $10,000 in
146.3the eligible person's lifetime.
146.4 For a part-time student, the amount of educational assistance must not exceed $500 per
146.5semester or term of enrollment. For the purpose of this paragraph, a part-time undergraduate
146.6student is a student taking fewer than 12 credits or the equivalent for a semester or term of
146.7enrollment and a part-time graduate student is a student considered part time by the eligible
146.8institution the graduate student is attending. The minimum award for undergraduate and
146.9graduate students is $50 per term.
146.10 Sec. 10. Minnesota Statutes 2016, section 197.791, subdivision 5a, is amended to read:
146.11 Subd. 5a. Apprenticeship and on-the-job training. (a) The commissioner, in
146.12consultation with the commissioners of employment and economic development and labor
146.13and industry, shall develop and implement an apprenticeship and on-the-job training program
146.14to administer a portion of the Minnesota GI Bill program to pay benefit amounts to eligible
146.15
146.16(b) An "eligible employer" means an employer operating a qualifying apprenticeship or
146.17on-the-job training program that has been approved by the commissioner.
146.18(c) A person is eligible for apprenticeship and on-the-job training assistance under this
146.19subdivision if the person meets the criteria established under subdivision 4,
146.20paragraph (a)
146.21provided in subdivision 4, paragraph (c), and may deny or terminate benefits as prescribed
146.22under subdivision 4, paragraphs (d) and (e). The amount of assistance paid to or on behalf
146.23of an eligible individual under this subdivision must not exceed the following:
146.24(1)
146.25(2)
146.26(3) $1,000 for a job placement credit payable to an eligible employer upon hiring and
146.27completion of six consecutive months' employment of a person receiving assistance under
146.28this subdivision; and
146.29(4) $1,000 for a job placement credit payable to an eligible employer after a person
146.30receiving assistance under this subdivision has been employed by the eligible employer for
146.31at least 12 consecutive months as a full-time employee.
147.1No more than
147.2on behalf of an individual in one fiscal year, and not more than
147.3benefits under this paragraph may be paid to or on behalf of an individual over any period
147.4of time.
147.5(d) Assistance for apprenticeship expenses and on-the-job training is available for
147.6qualifying programs, which must, at a minimum, meet the following criteria:
147.7(1) the training must be with an eligible employer;
147.8(2) the training must be documented and reported;
147.9(3) the training must reasonably be expected to lead to an entry-level position; and
147.10(4) the position must require at least six months of training to become fully trained.
147.13 Section 1. Minnesota Statutes 2016, section 10A.01, subdivision 12, is amended to read:
147.14 Subd. 12. Depository. "Depository" means a bank, savings association, or credit union
147.15organized under federal or state law and transacting business within this state. The
147.16depositories of a political committee or political fund include any depository in which the
147.17committee or fund has a savings, checking, or similar account, or purchases a money market
147.18certificate or certificate of deposit.
147.19 Sec. 2. Minnesota Statutes 2016, section 10A.01, subdivision 16, is amended to read:
147.20 Subd. 16. Election cycle. "Election cycle" means the period from January 1 following
147.21a general election for an office to December 31 following the next general election for that
147.22office, except that "election cycle" for a special election means the period from the date the
147.23special election writ is issued to
147.24election, the period from January 1 of the year prior to an election year through December
147.2531 of the election year is the "election segment" of the election cycle. Each other two-year
147.26segment of an election cycle is a "nonelection segment" of the election cycle. An election
147.27cycle that consists of two calendar years has only an election segment. The election segment
147.28of a special election cycle includes the entire special election cycle.
147.29EFFECTIVE DATE.This section is effective the day following final enactment and
147.30applies to any special election cycle that starts on or after that date.
148.1 Sec. 3. Minnesota Statutes 2016, section 10A.01, subdivision 26, is amended to read:
148.2 Subd. 26. Noncampaign disbursement. "Noncampaign disbursement" means a purchase
148.3or payment of money or anything of value made, or an advance of credit incurred, or a
148.4donation in kind received, by a principal campaign committee for any of the following
148.5purposes:
148.6 (1) payment for accounting and legal services;
148.7 (2) return of a contribution to the source;
148.8 (3) repayment of a loan made to the principal campaign committee by that committee;
148.9
148.10
148.11and facility rental for a fund-raising event;
148.12
148.13in the executive branch, including the costs of preparing and distributing a suggestion or
148.14idea solicitation to constituents, performed from the beginning of the term of office to
148.15adjournment sine die of the legislature in the election year for the office held, and half the
148.16cost of services for a constituent by a member of the legislature or a constitutional officer
148.17in the executive branch performed from adjournment sine die to 60 days after adjournment
148.18sine die;
148.19
148.20they are engaged in campaign activities;
148.21
148.22directly related to legislative duties;
148.23
148.24caucus in carrying out their leadership responsibilities;
148.25
148.26serving in public office, other than for personal uses;
148.27
148.28
148.29
148.30will no longer appear on a ballot or the general election is concluded, whichever occurs
148.31first;
149.1
149.2
149.3
149.4advertisements in the news media mailed or published prior to the end of the election cycle;
149.5
149.6if the defective material is destroyed without being used;
149.7
149.8
149.9
149.10contact information and distributed to constituents;
149.11
149.12convention in this state;
149.13
149.14being for any purpose other than to influence the nomination or election of a candidate or
149.15to promote or defeat a ballot question; and
149.16
149.17debit card, or electronic check.
149.18 The board must determine whether an activity involves a noncampaign disbursement
149.19within the meaning of this subdivision.
149.20 A noncampaign disbursement is considered to be made in the year in which the candidate
149.21made the purchase of goods or services or incurred an obligation to pay for goods or services.
149.22EFFECTIVE DATE.This section is effective July 1, 2017, and applies to elections
149.23held on or after that date.
149.24 Sec. 4. Minnesota Statutes 2016, section 10A.02, subdivision 13, is amended to read:
149.25 Subd. 13. Rules. (a) Chapter 14 applies to the board. The board may adopt rules to carry
149.26out the purposes of this chapter, if, before June 1, 2017, the board has published a notice
149.27of intent to adopt a rule without public hearing under section 14.22, subdivision 1, paragraph
149.28(a); 14.389, subdivision 2; or 14.3895, subdivision 3; a dual notice under section 14.22,
149.29subdivision 2; or a notice of hearing on a proposed rule under section 14.14.
150.1(b) After May 31, 2017, the board may only adopt rules that (1) incorporate specific
150.2changes set forth in applicable statutes when no interpretation of law is required, or (2)
150.3make changes to rules that do not alter the sense, meaning, or effect of a rule.
150.4(c) In addition to the notice required under chapter 14, the board shall notify the chairs
150.5and ranking minority members of the committees or subcommittees in the senate and house
150.6of representatives with primary jurisdiction over elections within seven calendar days of
150.7taking the following actions:
150.8(1) publication of a notice of intent to adopt rules or a notice of hearing;
150.9(2) publication of proposed rules in the State Register;
150.10(3) issuance of a statement of need and reasonableness; or
150.11(4) adoption of final rules.
150.12EFFECTIVE DATE.This section is effective the day following final enactment for
150.13rules for which a notice of intent to adopt a rule without public hearing under Minnesota
150.14Statutes, section 14.22, subdivision 1, paragraph (a); 14.389, subdivision 2; or 14.3895,
150.15subdivision 3; a dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a
150.16notice of hearing on a proposed rule under Minnesota Statutes, section 14.14, was published
150.17before June 1, 2017.
150.18 Sec. 5. Minnesota Statutes 2016, section 10A.025, subdivision 1a, is amended to read:
150.19 Subd. 1a. Electronic filing. (a) A report or statement required to be filed under this
150.20chapter may be filed electronically. The board shall adopt rules
150.21aspects of regulating electronic filing and
150.22is secure.
150.23(b) A document filed by facsimile transmission or electronic filing system has the same
150.24force and effect as filing an original paper document.
150.25(c) In order to provide a secure environment for the submission of electronic files, the
150.26board must require that a filer use a personal identification code when submitting an
150.27electronic file. The board may also request the filer to provide a valid e-mail address in
150.28order to receive confirmation and verification messages from the board.
150.29(d) After an electronic file is processed by the board, the information contained in the
150.30electronic file becomes the property of the state subject to the terms of the Data Practices
150.31Act under chapter 13.
151.1(e) In the case of a filing by facsimile transmission, the filer must retain the original of
151.2the filed document and a record of the date and time of the transmission. If an electronic
151.3filing system is used to submit an electronic file to the board, the filer must retain as
151.4documentation the database and information on which the electronic submission of data is
151.5based. The database and records are subject to audit as provided in this chapter.
151.6(f) Within five days of a request by the board, any person filing a document by facsimile
151.7transmission or electronic filing system shall refile the document by one of the other filing
151.8methods provided in Minnesota Rules, part 4501.0500, subpart 1.
151.9(g) Technical problems that prevent the successful submission of a facsimile transmission
151.10or electronic file do not relieve the filer of the responsibility of meeting the requirements
151.11of this chapter. An audit trail that demonstrates that the facsimile transmission or electronic
151.12file was successfully submitted in a timely fashion may be used by the board to waive late
151.13filing fees.
151.14 Sec. 6. Minnesota Statutes 2016, section 10A.04, is amended by adding a subdivision to
151.15read:
151.16 Subd. 9. Reporting by multiple lobbyists representing the same entity. Clauses (1)
151.17to (6) apply when a single individual, association, political subdivision, or public higher
151.18education system is represented by more than one lobbyist.
151.19(1) The entity must appoint one designated lobbyist to report lobbyist disbursements
151.20made by the entity. The designated lobbyist must indicate that status on the periodic reports
151.21of lobbyist disbursements.
151.22(2) A reporting lobbyist may consent to report on behalf of one or more other lobbyists
151.23for the same entity, in which case, the other lobbyists are persons whose activities the
151.24reporting lobbyist must disclose and are subject to the disclosure requirements of subdivision
151.253. Lobbyist disbursement reports filed by a reporting lobbyist must include the names and
151.26registration numbers of the other lobbyists whose activities are included in the report.
151.27(3) Lobbyists whose activities are accounted for by a reporting lobbyist are not required
151.28to file lobbyist disbursement reports.
151.29(4) A lobbyist whose lobbying disbursements are provided to the board through a
151.30reporting lobbyist must supply all relevant information on disbursements to the reporting
151.31lobbyist no later than five days before the prescribed filing date.
152.1(5) The reporting periods and due dates for a reporting lobbyist are those provided in
152.2subdivision 2. The late filing provisions in subdivision 5 apply to reports required by this
152.3subdivision.
152.4(6) The reporting lobbyist must indicate the names and registration numbers of any
152.5lobbyists who did not provide their lobbying disbursements for inclusion in a report. The
152.6late filing provisions in subdivision 5 apply to lobbyists who fail to report information to
152.7the reporting lobbyist.
152.8 Sec. 7. Minnesota Statutes 2016, section 10A.071, subdivision 1, is amended to read:
152.9 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.
152.10(b) "Gift" means money, real or personal property, a service, a loan, a forbearance or
152.11forgiveness of indebtedness, or a promise of future employment, that is given and received
152.12without the giver receiving consideration of equal or greater value in return.
152.13(c) "Official" means a public official, an employee of the legislature, or a local official
152.14of a metropolitan governmental unit.
152.15(d) "Plaque" means a decorative item with an inscription recognizing an individual for
152.16an accomplishment.
152.17 Sec. 8. Minnesota Statutes 2016, section 10A.09, subdivision 5, is amended to read:
152.18 Subd. 5. Form. (a) A statement of economic interest required by this section must be
152.19on a form prescribed by the board. The individual filing must provide the following
152.20information:
152.21(1) name, address, occupation, and principal place of business;
152.22(2) the name of each associated business and the nature of that association;
152.23(3) a listing of all real property within the state, excluding homestead property, in which
152.24the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as buyer or
152.25seller, or an option to buy, whether direct or indirect, if the interest is valued in excess of
152.26$2,500; or (ii) an option to buy, if the property has a fair market value of more than $50,000;
152.27(4) a listing of all real property within the state in which a partnership of which the
152.28individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed as
152.29buyer or seller, or an option to buy, whether direct or indirect, if the individual's share of
152.30the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the property
152.31has a fair market value of more than $50,000. A listing under this clause or clause (3) must
153.1indicate the street address and the municipality or the section, township, range and
153.2approximate acreage, whichever applies, and the county in which the property is located;
153.3(5) a listing of any investments, ownership, or interests in property connected with
153.4pari-mutuel horse racing in the United States and Canada, including a racehorse, in which
153.5the individual directly or indirectly holds a partial or full interest or an immediate family
153.6member holds a partial or full interest;
153.7(6) a listing of the principal business or professional activity category of each business
153.8from which the individual receives more than $50 in any month as an employee, if the
153.9individual has an ownership interest of 25 percent or more in the business;
153.10(7) a listing of each principal business or professional activity category from which the
153.11individual received compensation of more than $2,500 in the past 12 months as an
153.12independent contractor
153.13(8) the full name of each security with a value of more than $2,500 owned in part or in
153.14full by the public official at any time during the reporting period.
153.15(b) The business or professional categories for purposes of paragraph (a), clauses (6)
153.16and (7), must be the general topic headings used by the federal Internal Revenue Service
153.17for purposes of reporting self-employment income on Schedule C. This paragraph does not
153.18require an individual to report any specific code number from that schedule. Any additional
153.19principal business or professional activity category may only be adopted if the category is
153.20enacted by law.
153.21(c) For the purpose of an original statement of economic interest, "compensation in any
153.22month" includes only compensation received in the calendar month immediately preceding
153.23the date of appointment as a public official or filing as a candidate.
153.24(d) For the purpose of calculating the amount of compensation received from any single
153.25source in a single month, the amount shall include the total amount received from the source
153.26during the month, whether or not the amount covers compensation for more than one month.
153.27 Sec. 9. Minnesota Statutes 2016, section 10A.09, subdivision 6, is amended to read:
153.28 Subd. 6. Annual statement. (a) Each individual who is required to file a statement of
153.29economic interest must also file an annual statement by the last Monday in January of each
153.30year that the individual remains in office. The annual statement must cover the period
153.31through December 31 of the year prior to the year when the statement is due. The annual
153.32statement must include the amount of each honorarium in excess of $50 received since the
153.33previous statement and the name and address of the source of the honorarium. The board
154.1must maintain each annual statement of economic interest submitted by an officeholder in
154.2the same file with the statement submitted as a candidate.
154.3(b) For the purpose of annual statements of economic interest to be filed, "compensation
154.4in any month" includes compensation and honoraria received in any month between the
154.5end of the period covered in the preceding statement of economic interest and the end of
154.6the current period.
154.7(c) An individual must file the annual statement of economic interest required by this
154.8subdivision to cover the period for which the individual served as a public official even
154.9though at the time the statement was filed, the individual is no longer holding that office as
154.10a public official.
154.11 Sec. 10. Minnesota Statutes 2016, section 10A.105, subdivision 1, is amended to read:
154.12 Subdivision 1. Single committee. A candidate must not accept contributions from a
154.13source, other than self, in aggregate in excess of $750
154.14candidate designates and causes to be formed a single principal campaign committee for
154.15each office sought. A candidate may not authorize, designate, or cause to be formed any
154.16other political committee bearing the candidate's name or title or otherwise operating under
154.17the direct or indirect control of the candidate. However, a candidate may be involved in the
154.18direct or indirect control of a party unit.
154.19EFFECTIVE DATE.This section is effective July 1, 2017, and applies to elections
154.20held on or after that date.
154.21 Sec. 11. Minnesota Statutes 2016, section 10A.15, subdivision 1, is amended to read:
154.22 Subdivision 1. Anonymous contributions. A political committee, political fund, principal
154.23campaign committee, or party unit may not retain an anonymous contribution in excess of
154.24$20, but must forward it to the board for deposit in the general
154.25
154.26 Sec. 12. Minnesota Statutes 2016, section 10A.15, is amended by adding a subdivision to
154.27read:
154.28 Subd. 6. Contributions from Hennepin County registered associations. In lieu of
154.29registration with the board, an association registered with the Hennepin County filing officer
154.30under sections 383B.041 to 383B.058 that makes contributions of more than $500 to a
154.31committee or fund in a calendar year may notify the recipient committee of its registration
155.1with Hennepin County, including its registration number, and instruct the recipient committee
155.2to include the notice when the recipient committee discloses receipt of the contribution.
155.3 Sec. 13. [10A.155] VALUE OF CONTRIBUTIONS OF AUTOMOBILE USE.
155.4Automobile use provided to a committee by an individual may be valued at the lowest
155.5rate used by the state to reimburse its employees for automobile use. Alternatively, the value
155.6of the automobile may be calculated as the actual cost of fuel, maintenance, repairs, and
155.7insurance directly related to the use of the automobile. An automobile provided by an
155.8association must be valued at the fair market value for renting an equivalent automobile.
155.9 Sec. 14. Minnesota Statutes 2016, section 10A.20, subdivision 3, is amended to read:
155.10 Subd. 3. Contents of report. (a) The report required by this section must include each
155.11of the items listed in paragraphs (b) to
155.12prescribe forms based on filer type indicating which of those items must be included on the
155.13filer's report.
155.14(b) The report must disclose the amount of liquid assets on hand at the beginning of the
155.15reporting period.
155.16(c) The report must disclose the name, address, employer, or occupation if self-employed,
155.17and registration number if registered with the board, of each individual or association that
155.18has made one or more contributions to the reporting entity, including the purchase of tickets
155.19for a fund-raising effort, that in aggregate within the year exceed $200 for legislative or
155.20statewide candidates or more than $500 for ballot questions, together with the amount and
155.21date of each contribution, and the aggregate amount of contributions within the year from
155.22each source so disclosed. A donation in kind must be disclosed at its fair market value. An
155.23approved expenditure must be listed as a donation in kind. A donation in kind is considered
155.24consumed in the reporting period in which it is received. The names of contributors must
155.25be listed in alphabetical order. Contributions from the same contributor must be listed under
155.26the same name. When a contribution received from a contributor in a reporting period is
155.27added to previously reported unitemized contributions from the same contributor and the
155.28aggregate exceeds the disclosure threshold of this paragraph, the name, address, and
155.29employer, or occupation if self-employed, of the contributor must then be listed on the
155.30report.
155.31(d) The report must disclose the sum of contributions to the reporting entity during the
155.32reporting period.
156.1(e) The report must disclose each loan made or received by the reporting entity within
156.2the year in aggregate in excess of $200, continuously reported until repaid or forgiven,
156.3together with the name, address, occupation, principal place of business, if any, and
156.4registration number if registered with the board of the lender and any endorser and the date
156.5and amount of the loan. If a loan made to the principal campaign committee of a candidate
156.6is forgiven or is repaid by an entity other than that principal campaign committee, it must
156.7be reported as a contribution for the year in which the loan was made.
156.8(f) The report must disclose each receipt over $200 during the reporting period not
156.9otherwise listed under paragraphs (c) to (e).
156.10(g) The report must disclose the sum of all receipts of the reporting entity during the
156.11reporting period.
156.12(h) The report must disclose the name, address, and registration number if registered
156.13with the board of each individual or association to whom aggregate expenditures, approved
156.14expenditures, independent expenditures, and ballot question expenditures have been made
156.15by or on behalf of the reporting entity within the year in excess of $200, together with the
156.16amount, date, and purpose of each expenditure and the name and address of, and office
156.17sought by, each candidate on whose behalf the expenditure was made, identification of the
156.18ballot question that the expenditure was intended to promote or defeat and an indication of
156.19whether the expenditure was to promote or to defeat the ballot question, and in the case of
156.20independent expenditures made in opposition to a candidate, the candidate's name, address,
156.21and office sought. A reporting entity making an expenditure on behalf of more than one
156.22candidate for state or legislative office must allocate the expenditure among the candidates
156.23on a reasonable cost basis and report the allocation for each candidate.
156.24(i) The report must disclose the sum of all expenditures made by or on behalf of the
156.25reporting entity during the reporting period.
156.26(j) The report must disclose the amount and nature of an advance of credit incurred by
156.27the reporting entity, continuously reported until paid or forgiven. If an advance of credit
156.28incurred by the principal campaign committee of a candidate is forgiven by the creditor or
156.29paid by an entity other than that principal campaign committee, it must be reported as a
156.30donation in kind for the year in which the advance of credit was made.
156.31(k) The report must disclose the name, address, and registration number if registered
156.32with the board of each political committee, political fund, principal campaign committee,
156.33or party unit to which contributions have been made that aggregate in excess of $200 within
156.34the year and the amount and date of each contribution.
157.1(l) The report must disclose the sum of all contributions made by the reporting entity
157.2during the reporting period.
157.3(m) The report must disclose the name, address, and registration number if registered
157.4with the board of each individual or association to whom noncampaign disbursements have
157.5been made that aggregate in excess of $200 within the year by or on behalf of the reporting
157.6entity and the amount, date, and purpose of each noncampaign disbursement.
157.7(n) The report must disclose the sum of all noncampaign disbursements made within
157.8the year by or on behalf of the reporting entity.
157.9(o) The report must disclose the name and address of a nonprofit corporation that provides
157.10administrative assistance to a political committee or political fund as authorized by section
157.12fair market value of each type of assistance provided to the political committee or political
157.13fund during the reporting period.
157.14(p) Legislative, statewide, and judicial candidates, party units, and political committees
157.15and funds must itemize contributions that in aggregate within the year exceed $200 for
157.16legislative or statewide candidates or more than $500 for ballot questions on reports submitted
157.17to the board. The itemization must include the date on which the contribution was received,
157.18the individual or association that provided the contribution, and the address of the contributor.
157.19Additionally, the itemization for a donation in kind must provide a description of the item
157.20or service received. Contributions that are less than the itemization amount must be reported
157.21as an aggregate total.
157.22(q) Legislative, statewide, and judicial candidates, party units, political committees and
157.23funds, and committees to promote or defeat a ballot question must itemize expenditures and
157.24noncampaign disbursements that in aggregate exceed $200 in a calendar year on reports
157.25submitted to the board. The itemization must include the date on which the committee made
157.26or became obligated to make the expenditure or disbursement, the name and address of the
157.27vendor that provided the service or item purchased, and a description of the service or item
157.28purchased. Expenditures and noncampaign disbursements must be listed on the report
157.29alphabetically by vendor.
157.30 Sec. 15. Minnesota Statutes 2016, section 10A.20, subdivision 15, is amended to read:
157.31 Subd. 15. Equitable relief. A candidate whose opponent does not timely file the report
157.32due 15 days before the primary, or the report due ten days before the general election,
157.33
158.1immediate equitable relief to enforce the filing requirement. A prevailing party under this
158.2subdivision may be awarded attorney fees and costs by the court.
158.3 Sec. 16. Minnesota Statutes 2016, section 10A.245, subdivision 2, is amended to read:
158.4 Subd. 2. Termination by board. The board may terminate the registration of a principal
158.5campaign committee, party unit, political committee, or political fund found to be inactive
158.6under this section 60 days after sending written notice of inactivity by certified mail to the
158.7affected association at the last address on record with the board for that association. Within
158.860 days after the board sends notice under this section, the affected association must dispose
158.9of its assets as provided in this subdivision. The assets of the principal campaign committee,
158.10party unit, or political committee must be used for the purposes authorized by this chapter
158.11or section
158.12
158.13derived from the association's general treasury money revert to the association's general
158.14treasury. Assets of a political fund that resulted from contributions to the political fund must
158.15be used for the purposes authorized by this chapter or section
158.16and deposited in the general
158.17 Sec. 17. Minnesota Statutes 2016, section 10A.25, subdivision 1, is amended to read:
158.18 Subdivision 1. Limits are voluntary. The expenditure limits imposed by this section
158.19apply only to a candidate who has signed
158.20
158.21 Sec. 18. Minnesota Statutes 2016, section 10A.25, subdivision 2, is amended to read:
158.22 Subd. 2. Amounts. (a) In a segment of an election cycle, the principal campaign
158.23committee of the candidate must not make campaign expenditures nor permit approved
158.24expenditures to be made on behalf of the candidate that result in aggregate expenditures in
158.25excess of the following:
158.26(1) for governor and lieutenant governor, running together, $3,651,200 in the election
158.27segment and $1,564,800 in the nonelection segment;
158.28(2) for attorney general, $626,000 in the election segment and $208,700 in the nonelection
158.29segment;
158.30(3) for secretary of state and state auditor, separately, $417,300 in the election segment
158.31and $104,400 in the nonelection segment;
159.1(4) for state senator, $94,700 in the election segment and $31,600 in a nonelection
159.2segment;
159.3(5) for state representative, $63,100 in the election segment.
159.4(b) In addition to the amount in paragraph (a), clause (1), a candidate for endorsement
159.5for the office of lieutenant governor at the convention of a political party may make campaign
159.6expenditures and approved expenditures of five percent of that amount to seek endorsement.
159.7(c) If a special election cycle occurs during a general election cycle, expenditures by or
159.8on behalf of a candidate in the special election do not count as expenditures by or on behalf
159.9of the candidate in the general election.
159.10(d) The expenditure limits in this subdivision for an office are increased by ten percent
159.11for a candidate who has not previously held the same office, whose name has not previously
159.12been on the primary or general election ballot for that office, and who has not in the past
159.13ten years raised or spent more than $750 in a run for any other office whose territory now
159.14includes a population that is more than one-third of the population in the territory of the
159.15new office. Candidates who qualify for first-time candidate status receive a ten percent
159.16increase in the campaign expenditure limit in all segments of the applicable election cycle.
159.17In the case of a legislative candidate, the office is that of a member of the house of
159.18representatives or senate without regard to any specific district.
159.19 Sec. 19. Minnesota Statutes 2016, section 10A.25, subdivision 10, is amended to read:
159.20 Subd. 10. Effect of opponent's conduct. (a) After the deadline for filing a
159.21
159.22bound by the expenditure limits imposed by this section
159.23
159.24
159.25not
159.26become obligated to make expenditures during that election cycle in excess of the following
159.27limits:
159.28(1) up to the close of the reporting period before the primary election, receipts or
159.29expenditures equal to 20 percent of the election segment expenditure limit for that office
159.30as set forth in subdivision 2; or
159.31(2) after the close of the reporting period before the primary election, cumulative receipts
159.32or expenditures during that election cycle equal to 50 percent of the election cycle expenditure
159.33limit for that office as set forth in subdivision 2.
160.1Before the primary election, a candidate's "opponents" are only those who will appear
160.2on the ballot of the same party in the primary election.
160.3(b) A candidate who has not
160.4candidate's principal campaign committee, must file written notice with the board and
160.5provide written notice to any opponent of the candidate for the same office within 24 hours
160.6of exceeding the limits in paragraph (a). The notice must state only that the candidate or
160.7candidate's principal campaign committee has received contributions or made or become
160.8obligated to make campaign expenditures in excess of the limits in paragraph (a).
160.9(c) Upon receipt of the notice, a candidate who had
160.10limits may file with the board a notice that the candidate chooses to be no longer bound by
160.11the expenditure limits. A notice of a candidate's choice not to be bound by the expenditure
160.12limits that is based on the conduct of an opponent in the state primary election may not be
160.13filed more than one day after the State Canvassing Board has declared the results of the
160.14state primary.
160.15(d) A candidate who has
160.16by this section and whose opponent in the general election has chosen, as provided in
160.17paragraph (c), not to be bound by the expenditure limits because of the conduct of an
160.18opponent in the primary election is no longer bound by the limits
160.19
160.20 Sec. 20. Minnesota Statutes 2016, section 10A.257, subdivision 1, is amended to read:
160.21 Subdivision 1. Unused funds. For election cycles ending on or before December 31,
160.222018, after all campaign expenditures and noncampaign disbursements for an election cycle
160.23have been made, an amount up to 25 percent of the 2016 election cycle expenditure limit
160.24for the office may be carried forward. Any remaining amount up to the total amount of the
160.252016 public subsidy from the state elections campaign fund must be returned to the state
160.26treasury for credit to the general fund under Minnesota Statutes 2016, section
160.27remaining amount in excess of the total 2016 public subsidy must be contributed to the state
160.28elections campaign account or a political party for multicandidate expenditures as defined
160.29in section
160.30EFFECTIVE DATE.This section is effective July 1, 2017, and applies to elections
160.31held on or after that date.
161.1 Sec. 21. Minnesota Statutes 2016, section 10A.27, subdivision 10, is amended to read:
161.2 Subd. 10. Limited personal contributions. A candidate who signs
161.3pledge under section
161.4a segment of an election cycle more than five times the candidate's contribution limit for
161.5that segment under subdivision 1.
161.6 Sec. 22. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
161.7read:
161.8 Subd. 11a. Contributions from the sale of goods or services. Proceeds from the sale
161.9of goods or services by a political committee must be reported as a contribution to that
161.10committee, as provided in section 10A.13. A political committee selling goods or services
161.11must disclose to each purchaser, prior to a sale, that proceeds may be used to make a
161.12contribution to an independent expenditure political committee or fund, or may be used by
161.13the committee for other political purposes as authorized by law, and must offer the purchaser
161.14an opportunity to review the committee's most recent report submitted to the board under
161.15section 10A.20. A copy of the report must be clearly posted in a conspicuous location on
161.16at least 8.5-inch by 11-inch sized paper and available for public inspection at the point of
161.17sale.
161.18 Sec. 23. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
161.19read:
161.20 Subd. 16a. Return of contributions after merger of governor and lieutenant governor
161.21funds. Funds transferred to the joint committee for candidates for governor and lieutenant
161.22governor that result in aggregate contributions in excess of the applicable limits may be
161.23returned to the contributor within 90 days of the transfer of funds to the joint committee.
161.24 Sec. 24. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
161.25read:
161.26 Subd. 16b. Special election contribution limits. Election segment contribution limits
161.27set forth in this section apply to a special election cycle.
161.28 Sec. 25. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
161.29read:
161.30 Subd. 16c. Contribution limits apply independently. Contribution limits apply
161.31independently for election segments, nonelection segments, and special election cycles.
162.1 Sec. 26. Minnesota Statutes 2016, section 10A.28, subdivision 3, is amended to read:
162.2 Subd. 3. Conciliation agreement. If the board finds that there is reason to believe that
162.3
162.4to subdivision
162.5its finding to correct the matter by informal methods of conference and conciliation and to
162.6enter a conciliation agreement with the person involved. A conciliation agreement under
162.7this subdivision is a matter of public record. Unless violated, a conciliation agreement is a
162.8bar to any civil proceeding under subdivision 4.
162.9 Sec. 27. Minnesota Statutes 2016, section 10A.31, is amended by adding a subdivision to
162.10read:
162.11 Subd. 7b. Failure to repay. A candidate who fails to repay money required by the
162.12agreement cannot be paid additional public subsidy funds during the current or future election
162.13cycles until the entirety of the unexpended funds and any associated collection fees are
162.14either repaid to the board or discharged by court action.
162.15 Sec. 28. Minnesota Statutes 2016, section 10A.322, subdivision 1, is amended to read:
162.16 Subdivision 1.
162.17
162.18which the candidate agrees that the candidate will comply with sections
162.19subdivision 10
162.20committee of the candidate or the end of the first election cycle completed after the pledge
162.21was filed, whichever occurs first.
162.22 (b) Before the first day of filing for office, the board must forward
162.23forms to all filing officers. The board must also provide
162.24on request at any time. The candidate must file the
162.25three weeks before the candidate's state primary.
162.26after that date.
162.27on the board's Web site. For purposes of public posting, a pledge once filed may not be
162.28rescinded.
162.29
162.30
162.31
162.32
163.1
163.2
163.3 (c) A pledge filed by a candidate under this subdivision is a voluntary agreement by the
163.4candidate to comply with the sections listed in paragraph (a). Compliance with the terms
163.5of a pledge, or any provisions of law cited within the pledge, may not be the subject of an
163.6advisory opinion issued under section 10A.02, subdivision 12, and is not subject to an audit,
163.7investigation, or enforcement action by the board under section 10A.02, 10A.022, or any
163.8other applicable law.
163.9 Sec. 29. Minnesota Statutes 2016, section 10A.38, is amended to read:
163.1010A.38 CAPTIONING OF CAMPAIGN ADVERTISEMENTS.
163.11 (a) This section applies to a campaign advertisement by a candidate who
163.12
163.13 (b) "Campaign advertisement" means a professionally produced visual or audio recording
163.14of two minutes or less produced by the candidate for the purpose of influencing the
163.15nomination or election of a candidate.
163.16 (c) A campaign advertisement that is disseminated as an advertisement by broadcast or
163.17cable television must include closed captioning for deaf and hard-of-hearing viewers, unless
163.18the candidate has filed with the board before the advertisement is disseminated a statement
163.19setting forth the reasons for not doing so. A campaign advertisement that is disseminated
163.20as an advertisement to the public on the candidate's Web site must include closed captioning
163.21for deaf and hard-of-hearing viewers, unless the candidate has posted on the Web site a
163.22transcript of the spoken content of the advertisement or the candidate has filed with the
163.23board before the advertisement is disseminated a statement setting forth the reasons for not
163.24doing so. A campaign advertisement must not be disseminated as an advertisement by radio
163.25unless the candidate has posted on the candidate's Web site a transcript of the spoken content
163.26of the advertisement or the candidate has filed with the board before the advertisement is
163.27disseminated a statement setting forth the reasons for not doing so.
163.28 Sec. 30. VOTING EQUIPMENT GRANT.
163.29 Subdivision 1. Voting equipment grant account. A voting equipment grant program
163.30is established. The secretary of state must use money appropriated for the program to provide
163.31grants to counties and municipalities as authorized by this section. Funds appropriated for
163.32the grant are available until June 30, 2020.
164.1 Subd. 2. Authorized equipment. (a) A county or municipality may apply to receive a
164.2grant under this section for the purchase or lease of the following equipment:
164.3(1) electronic roster equipment and software that meets the technology requirements of
164.4Minnesota Statutes, section 201.225, subdivision 2;
164.5(2) assistive voting technology; or
164.6(3) automatic tabulating equipment.
164.7A purchase or lease of equipment is eligible for a grant under this section if the purchase
164.8is made, or lease entered, on or after July 1, 2017. A county or municipality that has
164.9purchased or leased eligible equipment before July 1, 2017, may apply for reimbursement.
164.10(b) The grant funds must not be used for maintenance or repair of voting equipment.
164.11 Subd. 3. Amount of grant. A county or municipal government is eligible to receive a
164.12grant equal to 75 percent of the total cost of the electronic roster equipment and software
164.13or 50 percent of the total cost for assistive voting technology or automatic tabulating
164.14equipment. The secretary of state must first award grants to counties and municipalities
164.15leasing or purchasing new equipment or software. If funds remain after awarding grants for
164.16new equipment or software, the secretary of state must use the remaining funds for grants
164.17to counties and municipalities seeking reimbursement for equipment or software already
164.18purchased.
164.19 Subd. 4. Application for grant; certification of costs. (a) To receive a grant, a county
164.20or municipality must submit an application to the secretary of state. The secretary of state
164.21shall prescribe a form for this purpose. At a minimum, the application must describe:
164.22(1) the type of equipment or software proposed for purchase or lease;
164.23(2) the expected total cost of the equipment or software, and sources of funding that will
164.24be used for the purchase or lease in addition to the grant funding provided by this section;
164.25(3) the county's or municipality's plan to address the long-term maintenance, repair, and
164.26eventual replacement costs for the equipment or software without using any funds from the
164.27grant for these purposes; and
164.28(4) any other information required by the secretary of state.
164.29(b) The secretary of state must establish:
164.30(1) a deadline for receipt of grant applications;
164.31(2) a procedure for awarding and distributing grants;
165.1(3) criteria for the fair, proportional distribution of grants if the funds do not completely
165.2cover the requests for a particular type of equipment; and
165.3(4) a process for verifying the proper use of the grants after distribution.
165.4 Subd. 5. Report to legislature. No later than January 15, 2018, and annually thereafter
165.5until the appropriations provided for grants under this section have been exhausted, the
165.6secretary of state must submit a report to the legislative committees with jurisdiction over
165.7elections policy on grants awarded by this section. The report must detail each grant awarded,
165.8including the jurisdiction, the amount of the grant, and the type of equipment or software
165.9purchased.
165.10 Sec. 31. REPEALER.
165.11 Subdivision 1. Campaign subsidy. Minnesota Statutes 2016, sections 10A.28,
165.12subdivision 1; 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b,
165.13and 11; 10A.315; 10A.321; 10A.322, subdivisions 2 and 4; 10A.323; and 10A.324,
165.14subdivisions 1 and 3, and Minnesota Rules, parts 4503.1400, subparts 2, 3, 4, 5, 6, 7, 8, and
165.159; and 4503.1450, are repealed effective July 1, 2017, and apply to elections held on or after
165.16that date. Money in the account under Minnesota Statutes, section 10A.30, on June 30,
165.172017, cancels to the general fund, and amounts designated under Minnesota Statutes, section
165.1810A.31, on income tax and property tax refund returns filed after June 30, 2017, are not
165.19effective and remain in the general fund.
165.20 Subd. 2. Rules. Minnesota Rules, parts 4501.0300, subpart 3; 4501.0500, subpart 2;
165.214503.0200, subpart 6; 4503.0300, subpart 4; 4503.0400, subpart 1; 4503.0500, subparts 5
165.22and 8; 4503.0700, subparts 2 and 3; 4503.1300, subpart 5; 4503.1600; 4503.1700; 4503.1800;
165.234505.0100, subpart 3; 4505.0900, subparts 2, 3, 4, 5, 6, and 7; 4511.0500, subpart 2;
165.244512.0100, subparts 2, 4, and 5; and 4525.0210, subpart 1, are repealed."
165.25Renumber the sections in sequence and correct the internal references
165.26Amend the title accordingly
165.27Delete the title and insert:
165.29relating to the operation of state government; appropriating money for the
165.30legislature, governor's office, state auditor, attorney general, secretary of state,
165.31certain agencies, boards, councils, and retirement funds; changing provisions in
165.32state government operations; making technical changes to state budgeting terms;
165.33changing administrative rules provisions; changing provisions in veterans affairs,
165.34campaign finance, and elections;amending Minnesota Statutes 2016, sections
165.353.305, subdivision 1; 3.842, subdivision 4a; 3.855, subdivision 2; 3.8843,
165.36subdivision 7; 3.971, subdivisions 2, 6; 3.972, by adding a subdivision; 3.98,
166.1subdivisions 1, 4; 3.987, subdivision 1; 6.481, subdivisions 3, 6; 6.56, subdivision
166.22; 6.581, subdivision 4; 10A.01, subdivisions 12, 16, 26; 10A.02, subdivision 13;
166.310A.025, subdivision 1a; 10A.04, by adding a subdivision; 10A.071, subdivision
166.41; 10A.09, subdivisions 5, 6; 10A.105, subdivision 1; 10A.15, subdivision 1, by
166.5adding a subdivision; 10A.20, subdivisions 3, 15; 10A.245, subdivision 2; 10A.25,
166.6subdivisions 1, 2, 10; 10A.257, subdivision 1; 10A.27, subdivision 10, by adding
166.7subdivisions; 10A.28, subdivision 3; 10A.31, by adding a subdivision; 10A.322,
166.8subdivision 1; 10A.38; 14.002; 14.02, by adding a subdivision; 14.05, subdivisions
166.91, 2, 6, 7, by adding subdivisions; 14.101, subdivision 1; 14.116; 14.125; 14.127;
166.1014.131; 14.14, subdivisions 1a, 2a; 14.18, subdivision 1; 14.19; 14.22, subdivision
166.111; 14.23; 14.25, subdivision 1; 14.26; 14.27; 14.365; 14.381, subdivision 3; 14.388,
166.12subdivisions 1, 2; 14.389, subdivision 3; 14.44; 14.45; 14.51; 14.57; 15.0596;
166.1315.191, subdivisions 1, 3; 16A.065; 16A.13, subdivision 2a; 16A.134; 16A.15,
166.14subdivision 3; 16A.17, subdivision 5; 16A.272, subdivision 3; 16A.40; 16A.42,
166.15subdivisions 2, 4, by adding a subdivision; 16A.56; 16A.671, subdivision 1; 16A.90;
166.1616B.04, subdivision 2; 16B.055, subdivision 1; 16B.335, subdivision 1; 16B.37,
166.17subdivision 4; 16B.371; 16B.4805, subdivisions 2, 4; 16B.97, by adding a
166.18subdivision; 16D.03, subdivision 2; 16D.09, subdivision 1; 16E.016; 16E.0466;
166.1921.116; 43A.17, subdivision 11; 43A.24, by adding a subdivision; 43A.30,
166.20subdivision 2; 43A.49; 49.24, subdivisions 13, 16; 69.031, subdivision 1; 80A.65,
166.21subdivision 9; 84A.23, subdivision 4; 84A.33, subdivision 4; 84A.40; 84A.52;
166.2288.12, subdivision 1; 94.522; 94.53; 116J.64, subdivision 7; 126C.55, subdivisions
166.232, 9; 126C.68, subdivision 3; 126C.69, subdivision 14; 127A.34, subdivision 1;
166.24127A.40; 136F.46, subdivision 1; 136F.70, subdivision 3; 138.69; 155A.30,
166.25subdivision 5; 162.08, subdivisions 10, 11; 162.14, subdivisions 4, 5; 162.18,
166.26subdivision 4; 162.181, subdivision 4; 163.051, subdivision 3; 176.181, subdivision
166.272; 176.581; 176.591, subdivision 3; 179A.20, by adding a subdivision; 190.19,
166.28subdivisions 2, 2a; 192.55; 196.05, subdivision 1; 196.052; 197.236, subdivision
166.299; 197.791, subdivisions 2, 3, 4, 5, 5a; 198.16; 237.30; 241.13, subdivision 1;
166.30244.19, subdivision 7; 256B.20; 260B.331, subdivision 2; 260C.331, subdivision
166.312; 270C.13, subdivision 1; 273.121, subdivision 1; 287.08; 297I.10, subdivision
166.321; 299C.21; 348.05; 352.04, subdivision 9; 352.05; 352.115, subdivision 12; 352.12,
166.33subdivision 13; 353.05; 353.27, subdivisions 3c, 7; 353.505; 354.42, subdivision
166.347; 354.52, subdivisions 4, 4b; 401.15, subdivision 1; 446A.086, subdivision 4;
166.35446A.16, subdivision 1; 462A.18, subdivision 1; 471.6161, subdivision 8; 471.617,
166.36subdivision 2; 475A.04, subdivision 1; 508.12, subdivision 1; 518A.79, by adding
166.37a subdivision; 525.841; Laws 2016, chapter 127, section 8; proposing coding for
166.38new law in Minnesota Statutes, chapters 2; 3; 6; 10A; 14; 15; 16A; 16B; 43A;
166.39118A; 197; repealing Minnesota Statutes 2016, sections 4.46; 6.581, subdivision
166.401; 10A.28, subdivision 1; 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7,
166.417a, 10, 10a, 10b, 11; 10A.315; 10A.321; 10A.322, subdivisions 2, 4; 10A.323;
166.4210A.324, subdivisions 1, 3; 14.05, subdivision 5; Minnesota Rules, parts 4501.0300,
166.43subpart 3; 4501.0500, subpart 2; 4503.0200, subpart 6; 4503.0300, subpart 4;
166.444503.0400, subpart 1; 4503.0500, subparts 5, 8; 4503.0700, subparts 2, 3;
166.454503.1300, subpart 5; 4503.1400, subparts 2, 3, 4, 5, 6, 7, 8, 9; 4503.1450;
166.464503.1600; 4503.1700; 4503.1800; 4505.0100, subpart 3; 4505.0900, subparts 2,
166.473, 4, 5, 6, 7; 4511.0500, subpart 2; 4512.0100, subparts 2, 4, 5; 4525.0210, subpart
166.481."