SF 605

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/27/2017 11:14am

A bill for an act
relating to the operation of state government; appropriating money for the
legislature, governor's office, state auditor, attorney general, secretary of state,
certain agencies, boards, councils, retirement funds; cancellation of certain
appropriations; precluding agencies from transferring money to the governor's
office for services; constraining the state auditor's use of funds for litigation
expenses; requiring the state auditor to reimburse Wright, Becker, and Ramsey
Counties for litigation expenses; limiting the state auditor's rates for 2017; requiring
legislative approval for certain rules; making an ALJ decision the final decision
in contested cases; creating an affirmative defense to certain rule violations;
modifying the employee gainsharing program; requiring the Department of
Administration to assess agencies for certain services; requiring the Office of
MN.IT Services to report its project portfolio to the legislature; limiting severance
pay for highly paid civil service employees; permitting state employees to opt out
of insurance coverage under SEGIP; limiting public employer compensation under
contracts to appropriated amounts; providing statutory appropriations to the Racing
Commission in the event of a failure to pass a biennial appropriation; raising caps
on Mighty Ducks grants; modifying expense calculation for the State Lottery;
creating an advisory task force on fiscal notes; setting a deadline for consolidation
of state information technology and for use of cloud-based solutions; creating a
legislative commission to review consolidation of the state's information
technology; establishing requirements for a grandfathered license for eyelash
technicians; creating a working group for a rules status system; creating a grant
program for election equipment; repealing the state auditor enterprise fund;
repealing the campaign finance public subsidy program; repealing lottery payouts
to people under 18; amending Minnesota Statutes 2016, sections 4.46; 6.481,
subdivision 6; 6.56, subdivision 2; 6.581, subdivision 4; 14.18, subdivision 1;
14.27; 14.389, subdivision 3; 14.57; 16A.90; 16B.055, subdivision 1; 16B.371;
16E.0466; 43A.17, subdivision 11; 43A.24, by adding a subdivision; 155A.23,
subdivisions 10, 15, 16, by adding a subdivision; 155A.29, subdivisions 1, 2;
155A.30, subdivisions 2, 5; 179A.20, by adding a subdivision; 240.15, subdivision
6; 240.155, subdivision 1; 240A.09; 349A.08, subdivision 2; 349A.10, subdivision
6; Laws 2016, chapter 127, section 8; proposing coding for new law in Minnesota
Statutes, chapters 6; 14; 16A; 240; repealing Minnesota Statutes 2016, sections
6.581, subdivision 1; 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a,
10, 10a, 10b, 11; 10A.315; 10A.321; 10A.322, subdivisions 1, 2, 4; 10A.323;
155A.23, subdivision 8; 349A.08, subdivision 3.

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

ARTICLE 1

STATE GOVERNMENT APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2018" and "2019" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
is fiscal years 2018 and 2019.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2018 new text end		new text begin 2019 new text end

Sec. 2. new text begin LEGISLATURE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 81,706,000 new text end

new text begin $ new text end

new text begin 81,512,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 81,578,000 new text end	new text begin 81,384,000 new text end
new text begin Health Care Access new text end	new text begin 128,000 new text end	new text begin 128,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Senate new text end

new text begin 32,299,000 new text end

new text begin 32,105,000 new text end

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

new text begin 32,383,000 new text end

new text begin 32,383,000 new text end

new text begin During the biennium ending June 30, 2019,
any revenues received by the house of
representatives from voluntary donations to
support broadcast or print media are
appropriated to the house of representatives.
new text end

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

new text begin 17,024,000 new text end

new text begin 17,024,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 16,896,000 new text end	new text begin 16,896,000 new text end
new text begin Health Care Access new text end	new text begin 128,000 new text end	new text begin 128,000 new text end

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

new text begin $6,180,000 the first year and $6,180,000 the
second year are for the Office of the Revisor
of Statutes.
new text end

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

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

new text begin $ new text end

new text begin 4,605,000 new text end

new text begin $ new text end

new text begin 4,605,000 new text end

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

new text begin (b) Up to $19,000 the first year and up to
$19,000 the second year are for necessary
expenses in the normal performance of the
Governor's and Lieutenant Governor's duties
for which no other reimbursement is provided.
new text end

new text begin (c) The following amounts that are
appropriated from the general fund in fiscal
years 2018 and 2019 to the specified agency
and are budgeted to be transferred to the
governor for personnel costs incurred by the
Offices of the Governor and the Lieutenant
Governor to support the agencies are canceled
to the general fund and the base for each
agency is reduced by the specified amount for
fiscal years 2020 and 2021.
new text end

new text begin Agency new text end					new text begin 2018 new text end			new text begin 2019 new text end
new text begin Commerce new text end					new text begin 67,000 new text end			new text begin 67,000 new text end
new text begin Employment and Economic Development new text end					new text begin 109,000 new text end			new text begin 109,000 new text end
new text begin Education new text end					new text begin 58,000 new text end			new text begin 58,000 new text end
new text begin Office of Higher Education new text end					new text begin 25,000 new text end			new text begin 25,000 new text end
new text begin Administration new text end					new text begin 25,000 new text end			new text begin 25,000 new text end
new text begin Management and Budget new text end					new text begin 21,000 new text end			new text begin 21,000 new text end
new text begin MN.IT Services new text end					new text begin 25,000 new text end			new text begin 25,000 new text end
new text begin Revenue new text end					new text begin 41,000 new text end			new text begin 41,000 new text end
new text begin Health new text end					new text begin 58,000 new text end			new text begin 58,000 new text end
new text begin Human Services new text end					new text begin 247,000 new text end			new text begin 247,000 new text end
new text begin Veterans Affairs new text end					new text begin 16,000 new text end			new text begin 16,000 new text end
new text begin Military Affairs new text end					new text begin 17,000 new text end			new text begin 17,000 new text end
new text begin Corrections new text end					new text begin 58,000 new text end			new text begin 58,000 new text end
new text begin Transportation new text end					new text begin 20,000 new text end			new text begin 20,000 new text end

new text begin (d) The following amounts that are budgeted
to be transferred from the specified fund for
the specified agencies to the governor for
personnel costs incurred by the Offices of the
Governor and Lieutenant Governor to support
the agencies during the previous fiscal year
are transferred from the specified fund to the
general fund.
new text end

new text begin Agency new text end	new text begin Fund new text end				new text begin 2018 new text end		new text begin 2019 new text end
new text begin Agriculture new text end	new text begin Miscellaneous Special Revenue Fund new text end				new text begin 41,000 new text end		new text begin 41,000 new text end
new text begin Housing Finance Agency new text end	new text begin Housing Finance Agency Fund new text end				new text begin 33,000 new text end		new text begin 33,000 new text end
new text begin Labor and Industry new text end	new text begin Restricted Special Revenue Fund new text end				new text begin 41,000 new text end		new text begin 41,000 new text end
new text begin Iron Range Resources and Rehabilitation Board new text end	new text begin Iron Range Resources and Rehabilitation Fund new text end				new text begin 26,000 new text end		new text begin 26,000 new text end
new text begin Higher Education new text end	new text begin Office of Higher Education Fund new text end				new text begin 16,000 new text end		new text begin 16,000 new text end
new text begin Management and Budget new text end	new text begin State Employee Group Insurance Program Fund new text end				new text begin 21,000 new text end		new text begin 21,000 new text end
new text begin Public Safety new text end	new text begin Restricted Special Revenue Fund new text end				new text begin 41,000 new text end		new text begin 41,000 new text end
new text begin Natural Resources new text end	new text begin Miscellaneous Special Revenue Fund new text end				new text begin 84,000 new text end		new text begin 84,000 new text end
new text begin Pollution Control Agency new text end	new text begin Miscellaneous Special Revenue Fund new text end				new text begin 67,000 new text end		new text begin 67,000 new text end
new text begin Transportation new text end	new text begin Transit Assistance Fund new text end				new text begin 40,000 new text end		new text begin 40,000 new text end
new text begin Transportation new text end	new text begin County State-Aid Roads Fund new text end				new text begin 30,000 new text end		new text begin 30,000 new text end
new text begin Transportation new text end	new text begin Municipal State-Aid Roads Fund new text end				new text begin 9,000 new text end		new text begin 9,000 new text end

Sec. 4. new text begin STATE AUDITOR new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 7,062,000 new text end

new text begin $ new text end

new text begin 7,062,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Audit Practice new text end

new text begin 5,081,000 new text end

new text begin 5,081,000 new text end

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

new text begin 318,000 new text end

new text begin 318,000 new text end

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

new text begin 598,000 new text end

new text begin 598,000 new text end

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

new text begin 448,000 new text end

new text begin 448,000 new text end

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

new text begin 358,000 new text end

new text begin 358,000 new text end

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

new text begin 259,000 new text end

new text begin 259,000 new text end

Sec. 5. new text begin ATTORNEY GENERAL new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 23,247,000 new text end

new text begin $ new text end

new text begin 23,247,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 20,465,000 new text end	new text begin 20,465,000 new text end
new text begin State Government Special Revenue new text end	new text begin 2,387,000 new text end	new text begin 2,387,000 new text end
new text begin Environmental new text end	new text begin 145,000 new text end	new text begin 145,000 new text end
new text begin Remediation new text end	new text begin 250,000 new text end	new text begin 250,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Government Legal Services new text end

new text begin 3,652,000 new text end

new text begin 3,652,000 new text end

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

new text begin 4,984,000 new text end

new text begin 4,984,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 2,223,000 new text end	new text begin 2,223,000 new text end
new text begin State Government Special Revenue new text end	new text begin 2,366,000 new text end	new text begin 2,366,000 new text end
new text begin Environmental new text end	new text begin 250,000 new text end	new text begin 250,000 new text end
new text begin Remediation new text end	new text begin 145,000 new text end	new text begin 145,000 new text end

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

new text begin 6,157,000 new text end

new text begin 6,157,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 6,136,000 new text end	new text begin 6,136,000 new text end
new text begin State Government Special Revenue new text end	new text begin 21,000 new text end	new text begin 21,000 new text end

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

new text begin 3,010,000 new text end

new text begin 3,010,000 new text end

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

new text begin 1,495,000 new text end

new text begin 1,495,000 new text end

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

new text begin 3,949,000 new text end

new text begin 3,949,000 new text end

Sec. 6. new text begin SECRETARY OF STATE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 7,901,000 new text end

new text begin $ new text end

new text begin 6,240,000 new text end

new text begin The base for fiscal year 2020 is $6,129,000
and the base for fiscal year 2021 is
$6,129,000.
new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Administration new text end

new text begin 594,000 new text end

new text begin 606,000 new text end

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

new text begin 609,000 new text end

new text begin 625,000 new text end

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

new text begin 1,617,000 new text end

new text begin 1,391,000 new text end

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

new text begin 5,081,000 new text end

new text begin 3,618,000 new text end

new text begin $1,772,000 the first year is for the voting
equipment grant established in article 3,
section 1. This is a onetime appropriation.
new text end

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

new text begin $ new text end

new text begin 976,000 new text end

new text begin $ new text end

new text begin 976,000 new text end

Sec. 8. new text begin INVESTMENT BOARD new text end

new text begin $ new text end

new text begin 139,000 new text end

new text begin $ new text end

new text begin 139,000 new text end

Sec. 9. new text begin ADMINISTRATIVE HEARINGS new text end

new text begin $ new text end

new text begin 7,633,000 new text end

new text begin $ new text end

new text begin 7,633,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 383,000 new text end	new text begin 383,000 new text end
new text begin Workers' Compensation new text end	new text begin 7,250,000 new text end	new text begin 7,250,000 new text end

new text begin Campaign Violations Hearings. new text end new text begin $115,000
in fiscal year 2018 and $115,000 in fiscal year
2019 are appropriated from the general fund
for the cost of considering complaints filed
under Minnesota Statutes, section 211B.32.
These amounts may be used in either year of
the biennium.
new text end

new text begin $6,000 in fiscal year 2018 and $6,000 in fiscal
year 2019 are appropriated from the general
fund to the Office of Administrative Hearings
for the cost of considering data practices
complaints filed under Minnesota Statutes,
section 13.085. These amounts may be used
in either year of the biennium.
new text end

Sec. 10. new text begin MN.IT SERVICES new text end

new text begin $ new text end

new text begin 4,622,000 new text end

new text begin $ new text end

new text begin 2,622,000 new text end

new text begin $3,300,000 the first year and $1,300,000 the
second year are for enhancements to
cybersecurity across state government.
new text end

new text begin $5,000,000 of the unobligated balance as of
March 15, 2017, in the information and
telecommunications technology systems and
services account in the special revenue fund
must be used for enhancements to
cybersecurity across state government. At the
end of the fiscal year 2016-2017 biennium, an
additional $5,000,000 of unexpended agency
operating dollars transferred into the account
must be used for cybersecurity enhancements
across state government. The state chief
information officer must report to the chairs
and ranking minority members of the
committees in the senate and house of
representatives with jurisdiction over state
government finance by August 15, 2017, on
how the $10,000,000 in funds will be used to
enhance cybersecurity.
new text end

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

new text begin During the biennium ending June 30, 2019,
MN.IT Services must not charge fees to a
public noncommercial educational television
broadcast station eligible for funding under
Minnesota Statutes, chapter 129D, for access
to the state broadcast infrastructure. If the
access fees not charged to public
noncommercial educational television
broadcast stations total more than $400,000
for the biennium, the office may charge for
access fees in excess of these amounts.
new text end

Sec. 11. new text begin ADMINISTRATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 20,036,000 new text end

new text begin $ new text end

new text begin 19,536,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Government and Citizen Services new text end

new text begin 6,901,000 new text end

new text begin 6,901,000 new text end

new text begin (a) Council on Developmental Disabilities new text end				new text begin 74,000 new text end		new text begin 74,000 new text end
new text begin (b) Materials Management Division new text end				new text begin 2,400,000 new text end		new text begin 2,400,000 new text end
new text begin (c) Real Estate and Construction Services new text end				new text begin 2,466,000 new text end		new text begin 2,466,000 new text end
new text begin (d) Enterprise Real Property Program new text end				new text begin 674,000 new text end		new text begin 674,000 new text end
new text begin (e) State Archeologist new text end				new text begin 215,000 new text end		new text begin 215,000 new text end
new text begin (f) Information Policy Analysis new text end				new text begin 525,000 new text end		new text begin 525,000 new text end
new text begin (g) State Demographer new text end				new text begin 547,000 new text end		new text begin 547,000 new text end

new text begin Subd. 3. new text end new text begin Fiscal Agent new text end

new text begin 11,277,000 new text end

new text begin 10,777,000 new text end

new text begin The appropriations under this section are to
the commissioner of administration for the
purposes specified.
new text end

new text begin In-Lieu of Rent. new text end new text begin $8,158,000 the first year and
$8,158,000 the second year are for space costs
of the legislature and veterans organizations,
ceremonial space, and statutorily free space.
new text end

new text begin Public Broadcasting. new text end new text begin (a) $1,550,000 the first
year and $1,550,000 the second year are for
matching grants for public television.
new text end

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

new text begin (c) $100,000 the first year is for a grant to
Twin Cities Public Television to produce the
Vietnam: Minnesota Remembers project.
new text end

new text begin (d) The commissioner of administration must
consider the recommendations of the
Minnesota Public Television Association
before allocating the amount appropriated in
paragraphs (a) and (b) for equipment or
matching grants.
new text end

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

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

new text begin (g) $310,000 the first year and $310,000 the
second year are for equipment grants to
Minnesota Public Radio, Inc., including
upgrades to Minnesota's Emergency Alert and
AMBER Alert Systems.
new text end

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

new text begin (i) The appropriations in paragraphs (e), (f),
(g), and (h), may not be used for indirect costs
claimed by an institution or governing body.
new text end

new text begin (j) The commissioner of administration must
consider the recommendations of the
Minnesota Public Educational Radio Stations
before awarding grants under Minnesota
Statutes, section 129D.14, using the
appropriations in paragraphs (e) and (f). No
grantee is eligible for a grant unless they are
a member of the Association of Minnesota
Public Educational Radio Stations on or before
July 1, 2015.
new text end

new text begin (k) Any unencumbered balance remaining the
first year for grants to public television or
radio stations does not cancel and is available
for the second year.
new text end

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

new text begin $ new text end

new text begin 327,000 new text end

new text begin $ new text end

new text begin 327,000 new text end

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

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 21,922,000 new text end

new text begin $ new text end

new text begin 21,922,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

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

new text begin 4,489,000 new text end

new text begin 4,489,000 new text end

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

new text begin 3,376,000 new text end

new text begin 3,376,000 new text end

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

new text begin 507,000 new text end

new text begin 507,000 new text end

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

new text begin 439,000 new text end

new text begin 439,000 new text end

new text begin Subd. 6. new text end new text begin Enterprise Human Resources new text end

new text begin 3,209,000 new text end

new text begin 3,209,000 new text end

new text begin Subd. 7. new text end new text begin Labor Relations new text end

new text begin 1,039,000 new text end

new text begin 1,039,000 new text end

new text begin Subd. 8. new text end new text begin Agency Administration new text end

new text begin 7,870,000 new text end

new text begin 7,870,000 new text end

new text begin Subd. 9. new text end new text begin Enterprise Communication and Planning new text end

new text begin 993,000 new text end

new text begin 993,000 new text end

new text begin The commissioner must report to the chairs
and ranking minority members of the
committees in the senate and house of
representatives with jurisdiction over state
government finance by September 15 of each
year on funding for the executive recruiter
position that was supported by appropriations
to other agencies during the previous fiscal
year.
new text end

Sec. 14. new text begin REVENUE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 141,784,000 new text end

new text begin $ new text end

new text begin 141,784,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 137,548,000 new text end	new text begin 137,548,000 new text end
new text begin Health Care Access new text end	new text begin 1,749,000 new text end	new text begin 1,749,000 new text end
new text begin Highway User Tax Distribution new text end	new text begin 2,184,000 new text end	new text begin 2,184,000 new text end
new text begin Environmental new text end	new text begin 303,000 new text end	new text begin 303,000 new text end

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

new text begin 114,313,000 new text end

new text begin 114,313,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 110,077,000 new text end	new text begin 110,077,000 new text end
new text begin Health Care Access new text end	new text begin 1,749,000 new text end	new text begin 1,749,000 new text end
new text begin Highway User Tax Distribution new text end	new text begin 2,184,000 new text end	new text begin 2,184,000 new text end
new text begin Environmental new text end	new text begin 303,000 new text end	new text begin 303,000 new text end

new text begin (a) new text end new text begin Operations Support new text end
new text begin General new text end				new text begin 9,627,000 new text end		new text begin 9,627,000 new text end
new text begin Health Care Access new text end				new text begin 126,000 new text end		new text begin 126,000 new text end

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

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

new text begin (b) new text end new text begin Appeals, Legal Services, and Tax Research new text end
new text begin General new text end				new text begin 6,961,000 new text end		new text begin 6,961,000 new text end
new text begin Health Care Access new text end				new text begin 113,000 new text end		new text begin 113,000 new text end

new text begin (c) new text end new text begin Payment and Return Processing new text end
new text begin General new text end				new text begin 12,650,000 new text end		new text begin 12,650,000 new text end
new text begin Health Care Access new text end				new text begin 51,000 new text end		new text begin 51,000 new text end
new text begin Highway User Tax Distribution new text end				new text begin 343,000 new text end		new text begin 343,000 new text end

new text begin (d) new text end new text begin Administration of State Taxes new text end
new text begin General new text end				new text begin 54,958,000 new text end		new text begin 54,958,000 new text end
new text begin Health Care Access new text end				new text begin 1,407,000 new text end		new text begin 1,407,000 new text end
new text begin Highway User Tax Distribution new text end				new text begin 1,621,000 new text end		new text begin 1,621,000 new text end
new text begin Environmental new text end				new text begin 303,000 new text end		new text begin 303,000 new text end

new text begin (e) new text end new text begin Technology Development, Implementation, and Support new text end
new text begin General new text end				new text begin 21,873,000 new text end		new text begin 21,873,000 new text end
new text begin Health Care Access new text end				new text begin 52,000 new text end		new text begin 52,000 new text end
new text begin Highway User Tax Distribution new text end				new text begin 220,000 new text end		new text begin 220,000 new text end

new text begin (f) new text end new text begin Property Tax Administration and State Aid new text end
new text begin General new text end				new text begin 4,008,000 new text end		new text begin 4,008,000 new text end

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

new text begin 27,471,000 new text end

new text begin 27,471,000 new text end

Sec. 15. new text begin GAMBLING CONTROL new text end

new text begin $ new text end

new text begin 3,324,000 new text end

new text begin $ new text end

new text begin 3,324,000 new text end

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

Sec. 16. new text begin RACING COMMISSION new text end

new text begin $ new text end

new text begin 835,000 new text end

new text begin $ new text end

new text begin 890,000 new text end

new text begin These appropriations are from the racing and
card playing regulation accounts in the special
revenue fund.
new text end

Sec. 17. new text begin STATE LOTTERY new text end

new text begin Notwithstanding Minnesota Statutes, section
349A.10, subdivision 3, the operating budget
must not exceed $32,500,000 in fiscal year
2018 and $33,000,000 in fiscal year 2019.
new text end

Sec. 18. new text begin AMATEUR SPORTS COMMISSION new text end

new text begin $ new text end

new text begin 7,458,000 new text end

new text begin $ new text end

new text begin 292,000 new text end

new text begin Mighty Ducks. $7,166,000 in fiscal year 2018
is appropriated from the general fund for the
purpose of making grants under Minnesota
Statutes, section 240A.09, paragraph (b). This
appropriation is onetime and is available until
June 30, 2019.
new text end

Sec. 19. new text begin COUNCIL ON MINNESOTANS OF AFRICAN HERITAGE new text end

new text begin $ new text end

new text begin 401,000 new text end

new text begin $ new text end

new text begin 401,000 new text end

Sec. 20. new text begin COUNCIL ON LATINO AFFAIRS new text end

new text begin $ new text end

new text begin 386,000 new text end

new text begin $ new text end

new text begin 386,000 new text end

Sec. 21. new text begin COUNCIL ON ASIAN-PACIFIC MINNESOTANS new text end

new text begin $ new text end

new text begin 364,000 new text end

new text begin $ new text end

new text begin 364,000 new text end

Sec. 22. new text begin INDIAN AFFAIRS COUNCIL new text end

new text begin $ new text end

new text begin 576,000 new text end

new text begin $ new text end

new text begin 576,000 new text end

Sec. 23. new text begin MINNESOTA HISTORICAL SOCIETY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 21,013,000 new text end

new text begin $ new text end

new text begin 21,013,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Operations and Programs new text end

new text begin 20,731,000 new text end

new text begin 20,731,000 new text end

new text begin Notwithstanding Minnesota Statutes, section
138.668, the Minnesota Historical Society may
not charge a fee for its general tours at the
Capitol, but may charge fees for special
programs other than general tours.
new text end

new text begin Subd. 3. new text end new text begin Fiscal Agent new text end

new text begin (a) Minnesota Air National Guard Museum new text end

new text begin 17,000 new text end

new text begin 17,000 new text end

new text begin (b) Hockey Hall of Fame new text end

new text begin 100,000 new text end

new text begin 100,000 new text end

new text begin (c) Minnesota Military Museum new text end

new text begin 50,000 new text end

new text begin 50,000 new text end

new text begin (d) Farmamerica new text end

new text begin 115,000 new text end

new text begin 115,000 new text end

new text begin new text begin Balances Forward. new text end Any unencumbered
balance remaining in this subdivision the first
year does not cancel but is available for the
second year of the biennium.
new text end

Sec. 24. new text begin BOARD OF THE ARTS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 7,500,000 new text end

new text begin $ new text end

new text begin 7,500,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Operations and Services new text end

new text begin 561,000 new text end

new text begin 561,000 new text end

new text begin Subd. 3. new text end new text begin Grants Program new text end

new text begin 4,800,000 new text end

new text begin 4,800,000 new text end

new text begin Subd. 4. new text end new text begin Regional Arts Councils new text end

new text begin 2,139,000 new text end

new text begin 2,139,000 new text end

new text begin Unencumbered Balance Available. Any
unencumbered balance remaining in this
section the first year does not cancel, but is
available for the second year of the biennium.
new text end

new text begin new text begin Projects located in Minnesota; travel
restriction. new text end Money appropriated in this section
and distributed as grants may only be spent
on projects located in Minnesota. A recipient
of a grant funded by an appropriation in this
section must not use more than ten percent of
the total grant for costs related to travel outside
the state of Minnesota.
new text end

Sec. 25. new text begin MINNESOTA HUMANITIES CENTER new text end

new text begin $ new text end

new text begin 332,000 new text end

new text begin $ new text end

new text begin 332,000 new text end

Sec. 26. new text begin BOARD OF ACCOUNTANCY new text end

new text begin $ new text end

new text begin 609,000 new text end

new text begin $ new text end

new text begin 609,000 new text end

Sec. 27. new text begin BOARD OF ARCHITECTURE ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN new text end

new text begin $ new text end

new text begin 754,000 new text end

new text begin $ new text end

new text begin 754,000 new text end

Sec. 28. new text begin BOARD OF COSMETOLOGIST EXAMINERS new text end

new text begin $ new text end

new text begin 2,455,000 new text end

new text begin $ new text end

new text begin 2,455,000 new text end

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

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

new text begin $ new text end

new text begin 308,000 new text end

new text begin $ new text end

new text begin 308,000 new text end

Sec. 30. new text begin GENERAL CONTINGENT ACCOUNTS new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin $ new text end

new text begin 500,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 500,000 new text end	new text begin -0- new text end
new text begin State Government Special Revenue new text end	new text begin 400,000 new text end	new text begin 400,000 new text end
new text begin Workers' Compensation new text end	new text begin 100,000 new text end	new text begin 100,000 new text end

new text begin (a) The appropriations in this section may only
be spent with the approval of the governor
after consultation with the Legislative
Advisory Commission pursuant to Minnesota
Statutes, section 3.30.
new text end

new text begin (b) If an appropriation in this section for either
year is insufficient, the appropriation for the
other year is available for it.
new text end

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

Sec. 31. new text begin TORT CLAIMS new text end

new text begin $ new text end

new text begin 161,000 new text end

new text begin $ new text end

new text begin 161,000 new text end

new text begin These appropriations are to be spent by the
commissioner of management and budget
according to Minnesota Statutes, section
3.736, subdivision 7. If the appropriation for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

Sec. 32. new text begin MINNESOTA STATE RETIREMENT SYSTEM new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 14,893,000 new text end

new text begin $ new text end

new text begin 15,071,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Combined Legislators and Constitutional Officers Retirement Plan new text end

new text begin 8,893,000 new text end

new text begin 9,071,000 new text end

new text begin Under Minnesota Statutes, sections 3A.03,
subdivision 2; 3A.04, subdivisions 3 and 4;
and 3A.115.
new text end

new text begin If an appropriation in this section for either
year is insufficient, the appropriation for the
other year is available for it.
new text end

new text begin Subd. 3. new text end new text begin Judges Retirement Plan new text end

new text begin 6,000,000 new text end

new text begin 6,000,000 new text end

new text begin For transfer to the judges retirement fund
under Minnesota Statutes, section 490.123.
$6,000,000 each fiscal year is included in the
base for fiscal years 2020 and 2021. This
transfer continues each fiscal year until the
judges retirement plan reaches 100 percent
funding as determined by an actuarial
valuation prepared according to Minnesota
Statutes, section 356.214.
new text end

Sec. 33. new text begin PUBLIC EMPLOYEES RETIREMENT ASSOCIATION new text end

new text begin $ new text end

new text begin 16,000,000 new text end

new text begin $ new text end

new text begin 16,000,000 new text end

new text begin State payments from the general fund to the
Public Employees Retirement Association on
behalf of the former MERF division account
are $16,000,000 on September 15, 2017, and
$16,000,000 on September 15, 2018.
new text end

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

Sec. 34. new text begin TEACHERS RETIREMENT ASSOCIATION new text end

new text begin $ new text end

new text begin 29,831,000 new text end

new text begin $ new text end

new text begin 29,831,000 new text end

new text begin The amounts estimated to be needed are as
follows:
new text end

new text begin Special Direct State Aid. $27,331,000 the
first year and $27,331,000 the second year are
for special direct state aid authorized under
Minnesota Statutes, section 354.436.
new text end

new text begin Special Direct State Matching Aid.
$2,500,000 the first year and $2,500,000 the
second year are for special direct state
matching aid authorized under Minnesota
Statutes, section 354.435.
new text end

Sec. 35. new text begin ST. PAUL TEACHERS RETIREMENT FUND new text end

new text begin $ new text end

new text begin 9,827,000 new text end

new text begin $ new text end

new text begin 9,827,000 new text end

new text begin The amounts estimated to be needed for
special direct state aid to the first class city
teachers retirement fund association authorized
under Minnesota Statutes, section 354A.12,
subdivisions 3a and 3c.
new text end

Sec. 36. new text begin SAVINGS FROM INSURANCE OPT OUT; APPROPRIATION
REDUCTION FOR EXECUTIVE AGENCIES.
new text end

new text begin The commissioner of management and budget must reduce general fund appropriations
to executive agencies, including constitutional offices, for agency operations for the biennium
ending June 30, 2019, by $4,394,000 due to savings from permitting employees to opt out
of insurance coverage under the state employee group insurance coverage.
new text end

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

Sec. 37. new text begin SAVINGS FROM INFORMATION TECHNOLOGY CONSOLIDATION
COMPLETION; APPROPRIATION REDUCTION FOR MN.IT.
new text end

new text begin The appropriation to the Office of MN.IT Services for the biennium ending June 30,
2019, is reduced by $3,000,000 due to savings on personnel costs resulting from efficiencies
achieved through completion of the executive branch information technology consolidation
required by Laws 2011, First Special Session chapter 10, article 4, section 7, as amended
by Laws 2013, chapter 134, section 29.
new text end

new text begin If savings obtained through completion of information technology consolidation yield
savings in nongeneral funds other than those established in the state constitution or protected
by federal law, the chief information officer may transfer the amount of savings to the
general fund. The amount transferred to the general fund from other funds reduces the
required general fund reduction in this section. Reductions made in 2019 must be reflected
as reductions in agency base budgets for fiscal years 2020 and 2021.
new text end

Sec. 38. new text begin APPROPRIATION CANCELLATIONS.
new text end

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

ARTICLE 2

MISCELLANEOUS

Section 1.

Minnesota Statutes 2016, section 4.46, is amended to read:

4.46 WASHINGTON OFFICE.

The governor may appoint employees for the Washington, D.C., office of the state of
Minnesota and may prescribe their duties. In the operation of the office, the governor may
expend money appropriated by the legislature new text begin to the governor new text end for promotional purposes in
the same manner as private persons, firms, corporations, and associations expend money
for promotional purposes. Promotional expenditures for food, lodging, or travel are not
governed by the travel rules of the commissioner of management and budget. new text begin An agency
may not transfer money to the governor for services provided by the governor or expenses
incurred in operating a Washington, D.C., office or for staff working on federal issues.
new text end

Sec. 2.

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

Subd. 6.

Payments to state auditor.

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

Sec. 3.

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

Subd. 2.

Billings by state auditor.

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

Sec. 4.

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

Subd. 4.

Reports to legislature.

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

Sec. 5.

new text begin [6.92] LITIGATION EXPENSES.
new text end

new text begin (a) Unless funds are otherwise expressly provided by law for this purpose, all costs
incurred by the state auditor in preparing and asserting a civil claim or appeal, or in defending
against a civil claim or appeal, related to the proper exercise of the auditor's constitutionally
authorized core functions must be paid by the auditor's constitutional office division. Only
allocations made to the constitutional office division may be used to pay these costs. The
state auditor must report to the chairs and ranking minority members of the committees in
the house of representatives and the senate with jurisdiction over the Office of the State
Auditor by May 1, 2017, and January 1, 2018, and each January 1 thereafter, on the state
auditor's litigation expenses. The report must list each lawsuit the state auditor has brought
or is defending, the grounds for each suit, the litigation expenses incurred since the previous
report under this section, and the projected expenses to complete the suit.
new text end

new text begin (b) In complying with paragraph (a), the state auditor may not, directly or indirectly,
decrease allocations previously made to, transfer funds from, or otherwise reduce services
provided by any other division of the office.
new text end

Sec. 6.

new text begin [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR
REMODELING; LEGISLATIVE NOTICE AND REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin As used in this section, "residential construction" means the
new construction or remodeling of any building subject to the Minnesota Residential Code.
new text end

new text begin Subd. 2. new text end

new text begin Impact on housing cost; agency determination. new text end

new text begin An agency must determine
if implementation of a proposed rule, or any portion of a proposed rule, will, on average,
increase the cost of residential construction or remodeling by $1,000 or more per unit. The
agency must make this determination before the close of the hearing record. Upon request
of a party affected by the proposed rule, an administrative law judge must review and
approve or disapprove an agency's determination that any portion of a proposed rule will
increase the cost of a dwelling unit by $1,000 or more.
new text end

new text begin Subd. 3. new text end

new text begin Notice to legislature; legislative approval. new text end

new text begin (a) If the agency determines that
the impact of a proposed rule meets or exceeds the cost threshold provided in subdivision
2, or if the administrative law judge separately confirms the cost of any portion of a rule
exceeds the cost threshold provided in subdivision 2, the agency must notify, in writing,
the chairs and ranking minority members of the policy committees of the house of
representatives and the senate with jurisdiction over the subject matter of the proposed rule
within ten days of the determination.
new text end

new text begin (b) If a committee of either the house of representatives or senate with jurisdiction over
the subject matter of the proposed rule or a portion of a rule that meets or exceeds the
threshold in subdivision 2 votes to advise an agency that the rule should not be adopted as
proposed, the agency may not adopt the rule unless the rule is approved by a law enacted
after the vote of the committee. Section 14.126, subdivision 2, applies to a vote of a
committee under this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Severability. new text end

new text begin If the agency or an administrative law judge determines that part
of a proposed rule meets or exceeds the threshold provided in subdivision 2, but that a
severable portion of the proposed rule does not meet or exceed that threshold, the agency
may proceed to adopt the severable portions of the proposed rule regardless of whether a
legislative committee has voted under subdivision 3 to advise an agency that the rule should
not be adopted as proposed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to
administrative rules proposed on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2016, section 14.18, subdivision 1, is amended to read:

Subdivision 1.

Generally.

new text begin Unless a later date is required by section 14.126 or other law
or is specified in the rule, new text end a rule is effective after new text begin :
new text end

new text begin (1) new text end it has been subjected to all requirements described in sections 14.131 to 14.20 deleted text begin and
five working days after deleted text end new text begin ;
new text end

new text begin (2) new text end the notice of adoption is published in the State Register deleted text begin unless a later date is required
by section 14.126 or other law or specified in the rule deleted text end new text begin ; and
new text end

new text begin (3) it has been approved by a law enacted after publication of the notice of adoption new text end deleted text begin . deleted text end new text begin if
any of the following applies:
new text end

new text begin (i) the rule is enacted without a specific authorization of rulemaking to enact rules to
implement a specific statute section;
new text end

new text begin (ii) a sanction or penalty can be imposed for failure to comply with the rule; or
new text end

new text begin (iii) the regulating agency has the authority to adjudicate a dispute with a regulated entity
about enforcement of or violation of the rule.
new text end

If the rule adopted is the same as the proposed rule, publication may be made by
publishing notice in the State Register that the rule has been adopted as proposed and by
citing the prior publication. If the rule adopted differs from the proposed rule, the portions
of the adopted rule that differ from the proposed rule must be included in the notice of
adoption together with a citation to the prior State Register publication of the remainder of
the proposed rule. The nature of the modifications must be clear to a reasonable person
when the notice of adoption is considered together with the State Register publication of
the proposed rule, except that modifications may also be made that comply with the form
requirements of section 14.07, subdivision 7.

If the agency omitted from the notice of proposed rule adoption the text of the proposed
rule, as permitted by section 14.14, subdivision 1a, paragraph (b), the chief administrative
law judge may provide that the notice of the adopted rule need not include the text of any
changes from the proposed rule. However, the notice of adoption must state in detail the
substance of the changes made from the proposed rule, and must state that a free copy of
the portion of the adopted rule that was the subject of the rulemaking proceeding, not
including any material adopted by reference as permitted by section 14.07, is available upon
request to the agency.

Sec. 8.

Minnesota Statutes 2016, section 14.27, is amended to read:

14.27 PUBLICATION OF ADOPTED RULE; EFFECTIVE DATE.

new text begin (a) Except as provided in paragraph (b), new text end the rule is effective deleted text begin upon deleted text end new text begin after new text end publication of
the notice of adoption in the State Register in the same manner as provided for adopted
rules in section 14.18.

new text begin (b) A rule is effective after publication of the notice of adoption in the State Register
and after approval by law in the same manner as provided for adopted rules in section 14.18,
if any of the following applies:
new text end

new text begin (1) the rule is enacted without a specific authorization of rulemaking to enact rules to
implement a specific statute section;
new text end

new text begin (2) a sanction or penalty can be imposed for failure to comply with the rule; or
new text end

new text begin (3) the regulating agency has the authority to adjudicate a dispute with a regulated entity
about enforcement of or violation of the rule.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to rules for which a notice of adoption is published on or after that date.
new text end

Sec. 9.

Minnesota Statutes 2016, section 14.389, subdivision 3, is amended to read:

Subd. 3.

Adoption.

new text begin (a) new text end The agency may modify a proposed rule if the modifications do
not result in a substantially different rule, as defined in section 14.05, subdivision 2,
paragraphs (b) and (c). If the final rule is identical to the rule originally published in the
State Register, the agency must publish a notice of adoption in the State Register. If the
final rule is different from the rule originally published in the State Register, the agency
must publish a copy of the changes in the State Register. The agency must also file a copy
of the rule with the governor. deleted text begin The rule is effective deleted text end deleted text begin upon publication in the State Register deleted text end deleted text begin .
deleted text end

new text begin (b) Except as provided in paragraph (c), the rule is effective upon publication in the
State Register.
new text end

new text begin (c) The rule is effective upon publication of the notice of adoption if it has been approved
by a law enacted after publication of the notice of adoption, if any of the following applies:
new text end

new text begin (1) the rule is enacted without a specific authorization of rulemaking to enact rules to
implement a specific statute section;
new text end

new text begin (2) a sanction or penalty can be imposed for failure to comply with the rule; or
new text end

new text begin (3) the regulating agency has the authority to adjudicate a dispute with a regulated entity
about enforcement of or violation of the rule.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to rules for which a notice of adoption is published on or after that date.
new text end

Sec. 10.

Minnesota Statutes 2016, section 14.57, is amended to read:

14.57 INITIATION; DECISION; AGREEMENT TO ARBITRATE.

(a) An agency shall initiate a contested case proceeding when one is required by law.
deleted text begin Unless otherwise provided by law, deleted text end An agency shall deleted text begin decide deleted text end new text begin submit new text end a contested case deleted text begin only deleted text end new text begin to
the Office of Administrative Hearings for disposition new text end in accordance with the contested case
procedures of the Administrative Procedure Act. Upon initiation of a contested case
proceeding, deleted text begin an agency may, by order, provide that deleted text end the report or order of the administrative
law judge constitutes the final decision in the case.

(b) As an alternative to initiating or continuing with a contested case proceeding, the
parties, subsequent to agency approval, may enter into a written agreement to submit the
issues raised to arbitration by an administrative law judge according to sections 572B.01
to 572B.31.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to contested
cases initiated on or after that date.
new text end

Sec. 11.

new text begin [14.605] AFFIRMATIVE DEFENSE.
new text end

new text begin In a contested case or any other action to enforce a rule or to sanction or penalize a
person for violation of a rule, a person shall have an affirmative defense if the person shows
by a preponderance of the evidence that the cost for the person to comply with the rule
exceeds $50,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to rules for which a notice of adoption is published on or after that date.
new text end

Sec. 12.

new text begin [16A.1282] TRANSFERS TO THE GOVERNOR.
new text end

new text begin An agency shall not transfer money to the governor for services provided by the governor
or to reimburse expenses incurred by the governor.
new text end

Sec. 13.

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

16A.90 EMPLOYEE GAINSHARING SYSTEM.

new text begin Subdivision 1. new text end

new text begin Commissioner must establish program. new text end

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

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

(2) the award deleted text begin must deleted text end new text begin may new text end be paid new text begin in an amount up to $2,500 per employee per award new text end from
deleted text begin the deleted text end new text begin an new text end appropriation to deleted text begin which the savings accrued deleted text end new text begin the agency for operations that is not
otherwise designated for a specific purpose by law new text end ; and

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

new text begin Subd. 2. new text end

new text begin Biannual legislative report. new text end

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

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

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

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

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

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

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

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

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

Sec. 14.

Minnesota Statutes 2016, section 16B.055, subdivision 1, is amended to read:

Subdivision 1.

Federal Assistive Technology Act.

(a) The Department of Administration
is designated as the lead agency to carry out all the responsibilities under the Assistive
Technology Act of 1998, as provided by Public Law 108-364, as amended. The Minnesota
Assistive Technology Advisory Council is established to fulfill the responsibilities required
by the Assistive Technology Act, as provided by Public Law 108-364, as amended. Because
the existence of this council is required by federal law, this council does not expire.

(b) new text begin Except as provided in paragraph (c), new text end the governor shall appoint the membership of
the council as required by the Assistive Technology Act of 1998, as provided by Public
Law 108-364, as amended. After the governor has completed the appointments required by
this subdivision, the commissioner of administration, or the commissioner's designee, shall
convene the first meeting of the council following the appointments. Members shall serve
two-year terms commencing July 1 of each odd-numbered year, and receive the compensation
specified by the Assistive Technology Act of 1998, as provided by Public Law 108-364, as
amended. The members of the council shall select their chair at the first meeting following
their appointment.

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

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

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

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

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

Sec. 15.

Minnesota Statutes 2016, section 16B.371, is amended to read:

16B.371 ASSISTANCE TO SMALL AGENCIES.

(a) The commissioner may provide administrative support services to small agencies.
To promote efficiency and cost-effective use of state resources, and to improve financial
controls, the commissioner may require a small agency to receive administrative support
services through the Department of Administration or through another agency designated
by the commissioner. Services subject to this section include finance, accounting, payroll,
purchasing, human resources, and other services designated by the commissioner. The
commissioner may determine what constitutes a small agency for purposes of this section.
The commissioner, in consultation with the commissioner of management and budget and
small agencies, shall evaluate small agencies' needs for administrative support services. If
the commissioner provides administrative support services to a small agency, the
commissioner must enter into a service level agreement with the agency, specifying the
services to be provided and the costs and anticipated outcomes of the services.

(b) The Minnesota Council on Latino Affairs, the Council for Minnesotans of African
Heritage, the Council on Asian-Pacific Minnesotans, the Indian Affairs Council, and the
Minnesota State Council on Disability must use the services specified in paragraph (a).

(c) The commissioner of administration deleted text begin may deleted text end new text begin must new text end assess agencies for services it provides
under this section. The amounts assessed are appropriated to the commissioner.

(d) For agencies covered in this section, the commissioner has the authority to require
the agency to comply with applicable state finance, accounting, payroll, purchasing, and
human resources policies. The agencies served retain the ownership and responsibility for
spending decisions and for ongoing implementation of appropriate business operations.

Sec. 16.

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

16E.0466 STATE AGENCY TECHNOLOGY PROJECTS.

new text begin Subdivision 1. new text end

new text begin Consultation required. new text end

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

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

new text begin Subd. 2. new text end

new text begin Legislative report. new text end

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

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

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

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

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

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

Sec. 17.

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

Subd. 11.

Severance pay for certain employees.

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

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

new text begin Subd. 1a. new text end

new text begin Opt out. new text end

new text begin (a) An individual eligible for state-paid hospital, medical, and dental
benefits under this section has the right to decline those benefits, provided the individual
declining the benefits can prove health insurance coverage from another source. Any
individual declining benefits must do so in writing, signed and dated, on a form provided
by the commissioner.
new text end

new text begin (b) The commissioner must create, and make available in hard copy and online a form
for individuals to use in declining state-paid hospital, medical, and dental benefits. The form
must, at a minimum, include notice to the declining individual of the next available
opportunity and procedure to re-enroll in the benefits.
new text end

Sec. 19.

Minnesota Statutes 2016, section 155A.23, is amended by adding a subdivision
to read:

new text begin Subd. 9a. new text end

new text begin Salon manager. new text end

new text begin A "salon manager" is any person who is a practitioner and
licensed to serve as a designated licensed salon manager, as defined in section 155A.23,
subdivision 15.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2016, section 155A.23, subdivision 10, is amended to read:

Subd. 10.

School.

A "school" is a place where any person deleted text begin operates and maintains a class
to teach deleted text end new text begin provides training on regulated new text end cosmetology deleted text begin to the public for compensation deleted text end new text begin services
requiring licensure new text end . "School" does not include a place where the only teaching of cosmetology
is deleted text begin done by a licensed cosmetologist as deleted text end part of a deleted text begin community education program of less than
ten hours duration, provided that the program does not permit practice on persons other
than students in the program, and provided that the program is intended solely for the
self-improvement of the students and not as preparation for professional practice. deleted text end new text begin continuing
education course required for license renewal, additional training offered to licensed
individuals, or training intended solely for the self-improvement of the attendees and not
as preparation for professional practice.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2016, section 155A.23, subdivision 15, is amended to read:

Subd. 15.

Designated licensed salon manager.

A "designated licensed salon manager"
is a new text begin licensed salon new text end manager designated by a salon owner and registered with the board, who
is responsible with the salon owner for salon and practitioner compliance.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2016, section 155A.23, subdivision 16, is amended to read:

Subd. 16.

School manager.

A "school manager" is a deleted text begin cosmetologist who is a salon
manager and who has a school manager license. A school manager must maintain an active
salon manager's license deleted text end new text begin person who is licensed to serve as a designated school manager, as
defined in section 155A.23, subdivision 17 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2016, section 155A.29, subdivision 1, is amended to read:

Subdivision 1.

Licensing.

A person must not offer cosmetology services for compensation
unless the services are provided by a licensee in a licensed salon or as otherwise provided
in this section. Each salon must be licensed deleted text begin as a cosmetology salon, a nail salon, esthetician
salon, advanced practice esthetician salon, or eyelash extension salon. A salon may hold
more than one type of salon license deleted text end .

Sec. 24.

Minnesota Statutes 2016, section 155A.29, subdivision 2, is amended to read:

Subd. 2.

Requirements.

The conditions and process by which a salon is licensed shall
be established by the board by rule. In addition to those requirements, no license shall be
issued unless the board first determines that the conditions in clauses (1) to (5) have been
satisfied:

(1) compliance with all local and state laws, particularly relating to matters of infection
control, health, and safety;

(2) the deleted text begin employment deleted text end new text begin appointment new text end of a new text begin designated licensed salon new text end manager, as defined in
section 155A.23, subdivision deleted text begin 8 deleted text end new text begin 15 new text end ;

(3) if applicable, evidence of compliance with workers' compensation section 176.182;
and

(4) evidence of continued professional liability insurance coverage of at least $25,000
for each claim and $50,000 total coverage for each policy year for each operator.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2016, section 155A.30, subdivision 2, is amended to read:

Subd. 2.

Standards.

The board shall by rule establish minimum standards of course
content and length specific to the educational preparation prerequisite to testing and
new text begin practitioner new text end licensing deleted text begin as cosmetologist, esthetician, and nail technician deleted text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

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

Subd. 5.

Conditions precedent to issuance.

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2016, section 179A.20, is amended by adding a subdivision
to read:

new text begin Subd. 2b. new text end

new text begin Limited by appropriation. new text end

new text begin A public employer may not contract to pay more
to employees in compensation and benefits in a biennium than is permitted under an approved
spending plan as provided in section 16A.14.
new text end

Sec. 28.

Minnesota Statutes 2016, section 240.15, subdivision 6, is amended to read:

Subd. 6.

Disposition of proceeds; account.

The commission shall distribute all money
received under this section, and, except as provided otherwise by section 240.131, all money
received from license fees new text begin , regulatory fees, new text end and fines it collects, according to this subdivision.
All money designated for deposit in the Minnesota breeders fund must be paid into that
fund for distribution under section 240.18 except that all money generated by simulcasts
must be distributed as provided in section 240.18, subdivisions 2, paragraph (d), clauses
(1), (2), and (3); and 3. Revenue from an admissions tax imposed under subdivision 1 must
be paid to the local unit of government at whose request it was imposed, at times and in a
manner the commission determines. Taxes received under this section must be paid to the
commissioner of management and budget for deposit in the general fund. All revenues from
licenses and other fees imposed by the commission must be deposited in the state treasury
and credited to a racing and card playing regulation account in the special revenue fund.
Receipts in this account are available for the operations of the commission up to the amount
authorized in biennial appropriations from the legislature. new text begin If a fiscal biennium ends without
the enactment of an appropriation to the commission for the following biennium, receipts
in this account are annually appropriated to the commission for the operations of the
commission up to the amount authorized in the second year of the most recently enacted
biennial appropriation, until a biennial appropriation is enacted.
new text end

Sec. 29.

Minnesota Statutes 2016, section 240.155, subdivision 1, is amended to read:

Subdivision 1.

Reimbursement account credit.

Money received by the commission as
reimbursement for the costs of services provided by veterinarians, stewards, deleted text begin and deleted text end medical
testing of horses new text begin , and fees received by the commission in the form of fees for regulatory
services new text end must be deposited in the state treasury and credited to a racing reimbursement
account new text begin in the special revenue fund new text end , except as provided under subdivision 2. Receipts are
appropriated new text begin , within the meaning of article XI, section 1, of the Minnesota Constitution, new text end to
the commission to pay the costs of providing the services new text begin and all other costs necessary to
allow the commission to fulfill its regulatory oversight duties required by chapter 240 and
commission rule. If the major appropriation bills needed to finance state government are
not enacted by the beginning of a fiscal biennium, the commission shall continue operations
as required by chapter 240 and commission rule new text end .

Sec. 30.

new text begin [240.1561] APPROPRIATION FOR FUNCTIONS SUPPORTING ONGOING
OPERATION OF THE RACING COMMISSION.
new text end

new text begin If, by July 1 of an odd-numbered year, legislation has not been enacted to appropriate
money for the next biennium to the commissioner of management and budget for central
accounting, procurement, payroll, and human resources functions, amounts necessary to
operate those functions associated with operation of the Racing Commission under chapter
240 are appropriated for the next biennium from the general fund to the commissioner of
management and budget. As necessary, the commissioner may transfer a portion of this
appropriation to other state agencies to support carrying out these functions. Any subsequent
appropriation to the commissioner of management and budget for a biennium in which this
section has been applied shall supersede and replace the funding authorized in this section.
new text end

Sec. 31.

Minnesota Statutes 2016, section 240A.09, is amended to read:

240A.09 PLAN DEVELOPMENT; CRITERIA.

The Minnesota Amateur Sports Commission shall develop a plan to promote the
development of proposals for new statewide public ice facilities including proposals for ice
centers and matching grants based on the criteria in this section.

(a) For ice center proposals, the commission will give priority to proposals that come
from more than one local government unit. Institutions of higher education are not eligible
to receive a grant.

(b) The commission must give priority to grant applications for indoor air quality
improvements and projects that eliminate R-22. For purposes of this section:

(1) "indoor air quality improvements" means: (i) renovation or replacement of heating,
ventilating, and air conditioning systems in existing indoor ice arenas whose ice resurfacing
and ice edging equipment are not powered by electricity in order to reduce concentrations
of carbon monoxide and nitrogen dioxide; and (ii) acquisition of zero-emission ice resurfacing
and ice edging equipment. The new or renovated systems may include continuous electronic
air monitoring devices to automatically activate the ventilation systems when the
concentration of carbon monoxide or nitrogen dioxide reaches a predetermined level; and

(2) "projects that eliminate R-22," means replacement of ice-making systems in existing
public facilities that use R-22 as a refrigerant, with systems that use alternative
non-ozone-depleting refrigerants.

(c) In the metropolitan area as defined in section 473.121, subdivision 2, the commission
is encouraged to give priority to the following proposals:

(1) proposals for construction of two or more ice sheets in a single new facility;

(2) proposals for construction of an additional sheet of ice at an existing ice center;

(3) proposals for construction of a new, single sheet of ice as part of a sports complex
with multiple sports facilities; and

(4) proposals for construction of a new, single sheet of ice that will be expanded to a
two-sheet facility in the future.

(d) The commission shall administer a site selection process for the ice centers. The
commission shall invite proposals from cities or counties or consortia of cities. A proposal
for an ice center must include matching contributions including in-kind contributions of
land, access roadways and access roadway improvements, and necessary utility services,
landscaping, and parking.

(e) Proposals for ice centers and matching grants must provide for meeting the demand
for ice time for female groups by offering up to 50 percent of prime ice time, as needed, to
female groups. For purposes of this section, prime ice time means the hours of 4:00 p.m.
to 10:00 p.m. Monday to Friday and 9:00 a.m. to 8:00 p.m. on Saturdays and Sundays.

(f) The location for all proposed facilities must be in areas of maximum demonstrated
interest and must maximize accessibility to an arterial highway.

(g) To the extent possible, all proposed facilities must be dispersed equitably, must be
located to maximize potential for full utilization and profitable operation, and must
accommodate noncompetitive family and community skating for all ages.

(h) The commission may also use the money to upgrade current facilities, purchase girls'
ice time, or conduct amateur women's hockey and other ice sport tournaments.

(i) To the extent possible, 50 percent of all grants must be awarded to communities in
greater Minnesota.

(j) To the extent possible, technical assistance shall be provided to Minnesota
communities by the commission on ice arena planning, design, and operation, including the
marketing of ice time and on projects described in paragraph (b).

(k) A grant for new facilities may not exceed $250,000.

(l) The commission may make grants for rehabilitation and renovation. A rehabilitation
or renovation grant for air quality may not exceed $200,000 and a rehabilitation or renovation
grant for R-22 elimination may not exceed deleted text begin $50,000 deleted text end new text begin $250,000 new text end for indirect cooling systems
and may not exceed deleted text begin $400,000 deleted text end new text begin $500,000 new text end for direct cooling systems. Priority must be given
to grant applications for indoor air quality improvements, including zero emission ice
resurfacing equipment, and for projects that eliminate R-22.

(m) Grant money may be used for ice centers designed for sports other than hockey.

(n) Grant money may be used to upgrade existing facilities to comply with the bleacher
safety requirements of section 326B.112.

Sec. 32.

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

Subd. 2.

Prizes not assignable.

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

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

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

Sec. 33.

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

Subd. 6.

Budget; plans.

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

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

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

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

Sec. 34.

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

Sec. 8. EFFECTIVE DATE; APPLICATION.

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

Sec. 35. new text begin TRANSITION.
new text end

new text begin Notwithstanding any law to the contrary, receipts received by the state auditor on or
after July 1, 2017, from examinations conducted by the state auditor under Minnesota
Statutes, chapter 6, must be credited to the general fund. Amounts in the state auditor
enterprise fund at the end of fiscal year 2017 are transferred to the general fund.
new text end

Sec. 36.

new text begin ADVISORY TASK FORCE ON FISCAL NOTES.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Advisory Task Force on Fiscal Notes consists of the
following 13 voting members:
new text end

new text begin (1) four senators, including two senators appointed by the senate majority leader and
two senators appointed by the senate minority leader;
new text end

new text begin (2) four members of the house of representatives, including two members appointed by
the speaker of the house and two members appointed by the minority leader of the house
of representatives;
new text end

new text begin (3) the commissioner of management and budget or a designee;
new text end

new text begin (4) the state budget director or designee;
new text end

new text begin (5) two fiscal note coordinators selected by the commissioner of management and budget;
and
new text end

new text begin (6) one member appointed by the governor from the Office of the Governor.
new text end

new text begin The lead fiscal analyst for the senate or a designee and the chief fiscal analyst for the
house of representatives or a designee shall serve on the task force as nonvoting members.
new text end

new text begin Subd. 2. new text end

new text begin Fiscal note. new text end

new text begin As used in this section, "fiscal note" means a document containing
the items listed in Minnesota Statutes, section 3.98, subdivision 2.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The task force shall conduct a review of options for providing fiscal
notes to the legislature and the executive branch. The task force shall compare the current
fiscal note process with a fiscal note process coordinated by a new legislative budget office.
In evaluating options and developing recommendations, the task force shall consider the
following:
new text end

new text begin (1) the legislative auditor's 2012 report on fiscal notes;
new text end

new text begin (2) the needs of the legislature for timely, accurate, unbiased fiscal notes prepared in a
cost-effective manner;
new text end

new text begin (3) the time it takes to obtain a fiscal note under the current system and the time it is
expected to take to obtain a fiscal note through a new legislative budget office;
new text end

new text begin (4) the accuracy of fiscal notes under the current system and the anticipated accuracy
of fiscal notes from a new legislative budget office;
new text end

new text begin (5) methods used by other states for preparing fiscal notes;
new text end

new text begin (6) the effect that legislative scheduling and amendments have on accuracy and timing
of fiscal notes, under the current system or through a new legislative budget office;
new text end

new text begin (7) the extent to which legislative staff suggest changes and corrections to fiscal notes
and the responsiveness of the executive branch to those suggestions under the current fiscal
note process and the anticipated responsiveness of a new legislative budget office;
new text end

new text begin (8) the cost of generating fiscal notes under the current system and the cost for generating
fiscal notes under a new legislative budget office;
new text end

new text begin (9) whether there are sufficient safeguards under the current fiscal note process to ensure
that fiscal notes are generated without political or ideological bias or influence and what
safeguards would need to be put in place to ensure that a new legislative budget office would
generate fiscal notes without political or ideological bias or influence; and
new text end

new text begin (10) options for additional duties for a new legislative budget office that would
complement the duty to generate fiscal notes, including a role for the office in
performance-based budgeting.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin The task force shall report to the chairs and ranking minority members
of the committees in the house of representatives and senate with jurisdiction over the fiscal
note process by June 1, 2018, with recommendations for modifying the fiscal note process.
The report must include any draft legislation needed to implement the recommendations.
new text end

new text begin Subd. 5. new text end

new text begin Chair; vice chair. new text end

new text begin The task force shall elect a chair from among the members
who are legislators by a majority vote of those members present. The task force shall elect
a vice chair from among the voting members who are not legislators.
new text end

new text begin Subd. 6. new text end

new text begin Meetings. new text end

new text begin The meetings of the commission are subject to Minnesota Statutes,
section 3.055.
new text end

new text begin Subd. 7. new text end

new text begin Administration. new text end

new text begin The Legislative Coordinating Commission shall provide
administrative services for the task force.
new text end

new text begin Subd. 8. new text end

new text begin Compensation. new text end

new text begin Members who are not legislators serve without compensation.
new text end

new text begin Subd. 9. new text end

new text begin Expiration. new text end

new text begin This section expires the day after submitting the report required
in subdivision 3.
new text end

new text begin Subd. 10. new text end

new text begin First appointments. new text end

new text begin Appointing authorities must make initial appointments
to the Advisory Task Force on Fiscal Notes by June 1, 2017.
new text end

new text begin Subd. 11. new text end

new text begin First meeting. new text end

new text begin The majority leader of the senate shall designate one senate
member of the Advisory Task Force on Fiscal Notes to convene the first meeting by August
1, 2017. The commission must select a chair from among the senate members at the first
meeting.
new text end

Sec. 37. new text begin MN.IT; PERFORMANCE OUTCOMES REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Completion of agency consolidation. new text end

new text begin No later than December 31, 2018,
the state chief information officer must complete the executive branch information technology
consolidation required by Laws 2011, First Special Session chapter 10, article 4, section 7,
as amended by Laws 2013, chapter 134, section 29. The head of any state agency subject
to consolidation must assist the state chief information officer as necessary to implement
the requirements of this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Information technology efficiencies and solutions. new text end

new text begin No later than December
31, 2018, the state chief information officer shall:
new text end

new text begin (1) host at least 25 percent of all state agency servers on a public cloud solution;
new text end

new text begin (2) store at least 35 percent of all state agency data on a public cloud solution; and
new text end

new text begin (3) operate no more than six data centers statewide.
new text end

new text begin Subd. 3. new text end

new text begin Personnel efficiencies. new text end

new text begin No later than June 30, 2019, the state chief information
officer shall reduce the Office of MN.IT Services' total cost for personnel by at least
$3,000,000.
new text end

new text begin Subd. 4. new text end

new text begin Legislative report; application consolidation. new text end

new text begin No later than January 1, 2018,
the state chief information officer must submit a report to the chairs and ranking minority
members of the house of representatives and senate committees with jurisdiction over state
government finance on the status of business application software consolidation across state
agencies. At a minimum, the report must describe the outcomes achieved to date, a plan
and timeline for continued consolidation of business application software with measurable
outcome goals, and recommendations, if any, on legislation necessary to facilitate
achievement of these goals.
new text end

Sec. 38. new text begin REIMBURSEMENT OF LEGAL COSTS FOR WRIGHT, BECKER, AND
RAMSEY COUNTIES.
new text end

new text begin The state auditor shall reimburse Wright, Becker, and Ramsey Counties for legal fees
incurred and costs and disbursements made as a result of defending against the state auditor's
lawsuit against them.
new text end

Sec. 39. new text begin SCHEDULE OF CHARGES.
new text end

new text begin Notwithstanding Minnesota Statutes, section 6.581, subdivision 3, or any other law to
the contrary, the rates included in the state auditor's schedule of charges for examinations
conducted in calendar year 2017 must be no greater than the rates included in the schedule
of charges established for examinations conducted in calendar year 2016.
new text end

Sec. 40.

new text begin LEGISLATIVE COMMISSION TO REVIEW CONSOLIDATION OF THE
STATE'S INFORMATION TECHNOLOGY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin As used in this section, "information technology" means
information and telecommunications technology systems and services; and "consolidation"
means the reorganization of the state's information technology under a single agency as
provided under Laws 2011, First Special Session chapter 10, article 4, section 7, as amended
by Laws 2013, chapter 134, section 29.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The Legislative Commission to Review Consolidation of the
State's Information Technology consists of the following eight members:
new text end

new text begin (1) four senators, including two senators appointed by the senate majority leader and
two senators appointed by the senate minority leader; and
new text end

new text begin (2) four members of the house of representatives, including two members appointed by
the speaker of the house and two members appointed by the house minority leader.
new text end

new text begin Subd. 3. new text end

new text begin Terms; vacancies. new text end

new text begin Members of the commission serve until the commission
sunsets. A vacancy in the membership of the commission must be filled for the unexpired
term in a manner that preserves the representation established by this section.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin The commission shall review the results achieved by the state's
consolidation of its information technology under one agency.
new text end

new text begin Subd. 5. new text end

new text begin Chair. new text end

new text begin The commission shall elect a chair by a majority vote of those members
present.
new text end

new text begin Subd. 6. new text end

new text begin Meetings. new text end

new text begin The meetings of the commission are subject to Minnesota Statutes,
section 3.055, except that the commission may close a meeting when necessary to safeguard
the state's cybersecurity.
new text end

new text begin Subd. 7. new text end

new text begin Administration. new text end

new text begin The Legislative Coordinating Commission shall provide
administrative services for the commission.
new text end

new text begin Subd. 8. new text end

new text begin Compensation. new text end

new text begin Members may receive per diem for attending commission
meetings in accordance with the rules of their respective bodies and may be reimbursed for
their reasonable expenses as provided by the rules of their respective legislative bodies.
new text end

new text begin Subd. 9. new text end

new text begin Report. new text end

new text begin By April 30, 2018, the commission shall report the results of the
commission's review to the chairs and ranking minority members of the committees in the
senate and in the house of representatives with jurisdiction over state government policy
and state government finance. The report should address the following topics:
new text end

new text begin (1) the number of full-time employees that provided information technology services to
state agencies prior to the consolidation and the number of full-time employees that provide
information technology services to state agencies in fiscal year 2017;
new text end

new text begin (2) the cost to the state of information technology in the year prior to consolidation and
the cost in fiscal year 2017;
new text end

new text begin (3) the usefulness, effectiveness, and efficiency of information technology now used by
state agencies and how this compares to prior consolidation;
new text end

new text begin (4) the responsiveness of MN.IT staff to requests for service from state agencies, and
how this compares to the responsiveness of information technology staff prior to
consolidation; and
new text end

new text begin (5) a conclusion as to whether a consolidated information technology office is the best
option for supplying information technology to state agencies.
new text end

new text begin Subd. 10. new text end

new text begin Sunset. new text end

new text begin The commission sunsets April 30, 2018, or the day after submission
of the report required in subdivision 9, whichever is earlier.
new text end

new text begin Subd. 11. new text end

new text begin First appointments. new text end

new text begin Appointing authorities must make initial appointments
to the Legislative Commission to Review Consolidation of the State's Information
Technology by June 1, 2017.
new text end

new text begin Subd. 12. new text end

new text begin First meeting. new text end

new text begin The member designated by the senate majority leader shall
convene the first meeting of the Legislative Commission to Review Consolidation of the
State's Information Technology under this section by September 15, 2017.
new text end

Sec. 41. new text begin MINNESOTA ADMINISTRATIVE RULES STATUS SYSTEM (MARSS)
WORKING GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin MARSS description. new text end

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

new text begin Subd. 3. new text end

new text begin Duties. new text end

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

new text begin Subd. 4. new text end

new text begin Administration provisions. new text end

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

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

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

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

new text begin Subd. 5. new text end

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

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

Sec. 42. new text begin EYELASH TECHNICIAN GRANDFATHERING.
new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 43. new text begin EYELASH TECHNICIAN RULEMAKING.
new text end

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

Sec. 44. new text begin EYELASH TECHNICIAN LICENSING.
new text end

new text begin The Board of Cosmetologist Examiners must not issue an eyelash practitioner license
before February 1, 2018, except for grandfathered licenses issued under section 39. The
Board of Cosmetologist Examiners must not require a person to have an eyelash practitioner
license for eyelash extensions before February 1, 2018.
new text end

Sec. 45. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin By January 15, 2018, the revisor of statutes shall present a bill to the legislature to make
the conforming statutory changes to incorporate changes in this article to the contested case
procedures under Minnesota Statutes, section 14.57.
new text end

Sec. 46. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 6.581, subdivision 1; 10A.30; 10A.31, subdivisions
1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b, and 11; 10A.315; 10A.321; 10A.322, subdivisions
1, 2, and 4; 10A.323; 155A.23, subdivision 8; and 349A.08, subdivision 3, new text end new text begin are repealed.
new text end

ARTICLE 3

ELECTIONS

Section 1. new text begin VOTING EQUIPMENT GRANT.
new text end

new text begin Subdivision 1. new text end

new text begin Voting equipment grant account. new text end

new text begin A voting equipment grant program
is established. The secretary of state must use money appropriated for the program to provide
grants to counties and municipalities as authorized by this section. Funds appropriated for
the grant are available until June 30, 2020.
new text end

new text begin Subd. 2. new text end

new text begin Authorized equipment. new text end

new text begin (a) A county or municipality may apply to receive a
grant under this section for the purchase or lease of the following equipment:
new text end

new text begin (1) electronic roster equipment and software that meets the technology requirements of
Minnesota Statutes, section 201.225, subdivision 2;
new text end

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

new text begin (3) automatic tabulating equipment.
new text end

new text begin A purchase or lease of equipment is eligible for a grant under this section if the purchase
is made, or lease entered, on or after July 1, 2017. A county or municipality that has
purchased or leased eligible equipment before July 1, 2017, may apply for reimbursement.
new text end

new text begin (b) The grant funds must not be used for maintenance or repair of voting equipment.
new text end

new text begin Subd. 3. new text end

new text begin Amount of grant. new text end

new text begin A county or municipal government is eligible to receive a
grant equal to 75 percent of the total cost of the electronic roster equipment and software
or 50 percent of the total cost for assistive voting technology or automatic tabulating
equipment. The secretary of state must first award grants to counties and municipalities
leasing or purchasing new equipment or software. If funds remain after awarding grants for
new equipment or software, the secretary of state must use the remaining funds for grants
to counties and municipalities seeking reimbursement for equipment or software already
purchased.
new text end

new text begin Subd. 4. new text end

new text begin Application for grant; certification of costs. new text end

new text begin (a) To receive a grant, a county
or municipality must submit an application to the secretary of state. The secretary of state
shall prescribe a form for this purpose. At a minimum, the application must describe:
new text end

new text begin (1) the type of equipment or software proposed for purchase or lease;
new text end

new text begin (2) the expected total cost of the equipment or software, and sources of funding that will
be used for the purchase or lease in addition to the grant funding provided by this section;
new text end

new text begin (3) the county's or municipality's plan to address the long-term maintenance, repair, and
eventual replacement costs for the equipment or software without using any funds from the
grant for these purposes; and
new text end

new text begin (4) any other information required by the secretary of state.
new text end

new text begin (b) The secretary of state must establish:
new text end

new text begin (1) a deadline for receipt of grant applications;
new text end

new text begin (2) a procedure for awarding and distributing grants;
new text end

new text begin (3) criteria for the fair, proportional distribution of grants if the funds do not completely
cover the requests for a particular type of equipment; and
new text end

new text begin (4) a process for verifying the proper use of the grants after distribution.
new text end

new text begin Subd. 5. new text end

new text begin Report to legislature. new text end

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

APPENDIX

Repealed Minnesota Statutes: S0605-1

6.581 STATE AUDITOR ENTERPRISE FUND.

Subdivision 1.

State auditor enterprise fund.

A state auditor enterprise fund is established in the state treasury. All amounts received for the costs and expenses of examinations performed under this chapter shall be credited to the fund. Amounts credited to the fund are annually appropriated to the state auditor to pay the costs and expenses related to the examinations performed, including, but not limited to, salaries, office overhead, equipment, authorized contracts, and other expenses.

10A.30 STATE ELECTIONS CAMPAIGN ACCOUNT.

Subdivision 1.

Establishment.

An account is established in the special revenue fund of the state known as the "state elections campaign account."

Subd. 2.

Separate account.

Within the state elections campaign account there must be maintained a separate political party account for the state committee and the candidates of each political party and a general account.

Subd. 3.

Special elections account.

An account is established in the special revenue fund of the state known as the "state special elections campaign account."

10A.31 DESIGNATION OF INCOME TAX PAYMENTS.

Subdivision 1.

Designation.

An individual resident of this state who files an income tax return or a renter and homeowner property tax refund return with the commissioner of revenue may designate on their original return that $5 be paid from the general fund of the state into the state elections campaign account. If a husband and wife file a joint return, each spouse may designate that $5 be paid. No individual is allowed to designate $5 more than once in any year. The taxpayer may designate that the amount be paid into the account of a political party or into the general account.

Subd. 3.

Form.

The commissioner of revenue must provide on the first page of the income tax form and the renter and homeowner property tax refund return a space for the individual to indicate a wish to pay $5 ($10 if filing a joint return) from the general fund of the state to finance election campaigns. The form must also contain language prepared by the commissioner that permits the individual to direct the state to pay the $5 (or $10 if filing a joint return) to: (1) one of the major political parties; (2) any minor political party that qualifies under subdivision 3a; or (3) all qualifying candidates as provided by subdivision 7. The renter and homeowner property tax refund return must include instructions that the individual filing the return may designate $5 on the return only if the individual has not designated $5 on the income tax return.

Subd. 3a.

Qualification of political parties.

(a) A major political party qualifies for inclusion on the income tax form and property tax refund return as provided in subdivision 3 if it qualifies as a major political party by July 1 of the taxable year.

(b) A minor political party qualifies for inclusion on the income tax form and property tax refund return as provided in subdivision 3 if it qualifies as a minor party statewide by July 1 of the taxable year.

(c) The secretary of state shall notify each major and minor political party by the first Monday in January of each odd-numbered year of the conditions necessary for the party to participate in income tax form and property tax refund return programs.

(d) The secretary of state shall notify each political party, the commissioner of revenue, and the Campaign Finance and Public Disclosure Board by July 1 of each year and following certification of the results of each general election of the political parties that qualify for inclusion on the income tax form and property tax refund return as provided in subdivision 3.

Subd. 4.

Appropriation.

(a) The amounts designated by individuals for the state elections campaign account, less three percent, are appropriated from the general fund, must be transferred and credited to the appropriate account in the state elections campaign account, and are annually appropriated for distribution as set forth in subdivisions 5, 5a, 6, and 7. The remaining three percent must be kept in the general fund for administrative costs.

(b) In addition to the amounts in paragraph (a), $1,020,000 for each general election is appropriated from the general fund for transfer to the general account of the state elections campaign account.

Subd. 5.

Allocation.

(a) General account. In each calendar year the money in the general account must be allocated to candidates as follows:

(1) 21 percent for the offices of governor and lieutenant governor together;

(2) 4.2 percent for the office of attorney general;

(3) 2.4 percent each for the offices of secretary of state and state auditor;

(4) in each calendar year during the period in which state senators serve a four-year term, 23-1/3 percent for the office of state senator, and 46-2/3 percent for the office of state representative; and

(5) in each calendar year during the period in which state senators serve a two-year term, 35 percent each for the offices of state senator and state representative.

(b) Party account. In each calendar year the money in each party account must be allocated as follows:

(1) 14 percent for the offices of governor and lieutenant governor together;

(2) 2.8 percent for the office of attorney general;

(3) 1.6 percent each for the offices of secretary of state and state auditor;

(4) in each calendar year during the period in which state senators serve a four-year term, 23-1/3 percent for the office of state senator, and 46-2/3 percent for the office of state representative;

(5) in each calendar year during the period in which state senators serve a two-year term, 35 percent each for the offices of state senator and state representative; and

(6) ten percent or $50,000, whichever is less, for the state committee of a political party; one-third of any amount in excess of that allocated to the state committee of a political party under this clause must be allocated to the office of state senator and two-thirds must be allocated to the office of state representative under clause (4).

Money allocated to each state committee under clause (6) must be deposited in a separate account and must be spent for only those items enumerated in section 10A.275. Money allocated to a state committee under clause (6) must be paid to the committee by the board as it is received in the account on a monthly basis, with payment on the 15th day of the calendar month following the month in which the returns were processed by the Department of Revenue, provided that these distributions would be equal to 90 percent of the amount of money indicated in the Department of Revenue's weekly unedited reports of income tax returns and property tax refund returns processed in the month, as notified by the Department of Revenue to the board. The amounts paid to each state committee are subject to biennial adjustment and settlement at the time of each certification required of the commissioner of revenue under subdivisions 7 and 10. If the total amount of payments received by a state committee for the period reflected on a certification by the Department of Revenue is different from the amount that should have been received during the period according to the certification, each subsequent monthly payment must be increased or decreased to the fullest extent possible until the amount of the overpayment is recovered or the underpayment is distributed.

Subd. 5a.

Party account for legislative candidates.

To ensure that money will be returned to the counties from which it was collected and to ensure that the distribution of money rationally relates to the support for particular parties or for particular candidates within legislative districts, money from the party accounts for legislative candidates must be distributed as provided in this subdivision.

Each candidate for the state senate and state house of representatives whose name is to appear on the ballot in the general election must receive money from the candidate's party account allocated to candidates for the state senate or state house of representatives, whichever applies, according to the following formula:

For each county within the candidate's district, the candidate's share of the dollars designated by taxpayers who resided in that county and credited to the candidate's party account and allocated to that office must be:

(1) the sum of the votes cast in the last general election in that part of the county in the candidate's district for all candidates of that candidate's party whose names appeared on the ballot statewide and for the state senate and state house of representatives, divided by

(2) the sum of the votes cast in the entire county in the last general election for all candidates of that candidate's party whose names appeared on the ballot statewide and for the state senate and state house of representatives, multiplied by

(3) the amount in the candidate's party account designated by taxpayers who resided in that county and allocated to that office.

The sum of all the county shares calculated in the formula above is the candidate's share of the candidate's party account.

In a year in which an election for the state senate occurs, with respect to votes for candidates for the state senate only, "last general election" means the last general election in which an election for the state senate occurred.

For a party under whose name no candidate's name appeared on the ballot statewide in the last general election, amounts in the party's account must be allocated based on (i) the number of people voting in the last general election in that part of the county in the candidate's district, divided by (ii) the number of the people voting in the entire county in the last general election, multiplied by (iii) the amount in the candidate's party account designated by taxpayers who resided in that county and allocated to that office.

In the first general election after the legislature is redistricted, "the candidate's district" means the newly drawn district and voting data from the last general election must be applied to the area encompassing the newly drawn district, notwithstanding that the area was in a different district in the last general election.

If in a district there was no candidate of a party for the state senate or state house of representatives in the last general election, or if a candidate for the state senate or state house of representatives was unopposed, the vote for that office for that party is the average vote of all the remaining candidates of that party in each county of that district whose votes are included in the sums in clauses (1) and (2). The average vote must be added to the sums in clauses (1) and (2) before the calculation is made for all districts in the county.

Subd. 6.

Distribution of party accounts.

As soon as the board has obtained from the secretary of state the results of the primary election, but no later than one week after certification by the State Canvassing Board of the results of the primary, the board must distribute the available money in each party account, as certified by the commissioner of revenue one week before the state primary, to the candidates of that party who have signed a spending limit agreement under section 10A.322 and filed the affidavit of contributions required by section 10A.323, who were opposed in either the primary election or the general election, and whose names are to appear on the ballot in the general election, according to the allocations set forth in subdivisions 5 and 5a. The public subsidy from the party account may not be paid in an amount greater than the expenditure limit of the candidate or the expenditure limit that would have applied to the candidate if the candidate had not been freed from expenditure limits under section 10A.25, subdivision 10.

Subd. 6a.

Party account money not distributed.

Money from a party account not distributed to candidates for state senator or representative in any election year must be returned to the general fund of the state, except that the subsidy from the party account an unopposed candidate would otherwise have been eligible to receive must be paid to the state committee of the candidate's political party to be deposited in a special account under subdivision 5, paragraph (b), clause (6), and used for only those items permitted under section 10A.275. Money from a party account not distributed to candidates for other offices in an election year must be returned to the party account for reallocation to candidates as provided in subdivision 5, paragraph (b), in the following year.

Subd. 7.

Distribution of general account.

(a) As soon as the board has obtained the results of the primary election from the secretary of state, but no later than one week after certification of the primary results by the State Canvassing Board, the board must distribute the available money in the general account, as certified by the commissioner of revenue one week before the state primary and according to allocations set forth in subdivision 5, in equal amounts to all candidates of a major political party whose names are to appear on the ballot in the general election and who:

(1) have signed a spending limit agreement under section 10A.322;

(2) have filed the affidavit of contributions required by section 10A.323; and

(3) were opposed in either the primary election or the general election.

(b) The public subsidy under this subdivision may not be paid in an amount that would cause the sum of the public subsidy paid from the party account plus the public subsidy paid from the general account to exceed 50 percent of the expenditure limit for the candidate or 50 percent of the expenditure limit that would have applied to the candidate if the candidate had not been freed from expenditure limits under section 10A.25, subdivision 10. Money from the general account not paid to a candidate because of the 50 percent limit must be distributed equally among all other qualifying candidates for the same office until all have reached the 50 percent limit or the balance in the general account is exhausted.

Subd. 7a.

Withholding of public subsidy.

If a candidate who is eligible for payment of public subsidy under this section has not filed the report of receipts and expenditures required under section 10A.20 before a primary election, any public subsidy for which that candidate is eligible must be withheld by the board until the candidate complies with the filing requirements of section 10A.20 and the board has sufficient time to review or audit the report. If a candidate who is eligible for public subsidy does not file the report due before the primary election under section 10A.20 by the date that the report of receipts and expenditures filed before the general election is due, that candidate shall not be paid public subsidy for that election.

Subd. 10.

December distribution.

In the event that on the date of either certification by the commissioner of revenue as provided in subdivision 6 or 7, less than 98 percent of the tax returns have been processed, the commissioner of revenue must certify to the board by December 1 the amount accumulated in each account since the previous certification. By December 15, the board must distribute to each candidate according to the allocations in subdivisions 5 and 5a the amounts to which the candidates are entitled.

Subd. 10a.

Form of distribution.

A distribution to a candidate must be in the form of a check made "payable to the campaign fund of ......(name of candidate)......."

Subd. 10b.

Remainder.

Money accumulated after the final certification must be kept in the respective accounts for distribution in the next general election year.

Subd. 11.

Write-in candidate.

For the purposes of this section, a write-in candidate is a candidate only upon complying with sections 10A.322 and 10A.323.

10A.315 SPECIAL ELECTION SUBSIDY.

(a) Each eligible candidate for a legislative office in a special election must be paid a public subsidy equal to the sum of:

(1) the party account money at the last general election for the candidate's party for the office the candidate is seeking; and

(2) the general account money paid to a candidate for the same office at the last general election.

(b) A candidate who wishes to receive this public subsidy must submit a signed agreement under section 10A.322 to the board and must meet the contribution requirements of section 10A.323. The special election subsidy must be distributed in the same manner as money in the party and general accounts is distributed to legislative candidates in a general election.

(c) The amount necessary to make the payments required by this section is appropriated from the general fund for transfer to the state special elections campaign account for distribution by the board as set forth in this section.

10A.321 ESTIMATES OF MINIMUM AMOUNTS TO BE RECEIVED.

Subdivision 1.

Calculation and certification of estimates.

The commissioner of revenue must calculate and certify to the board one week before the first day for filing for office in each election year an estimate of the total amount in the state general account of the state elections campaign account and the amount of money each candidate who qualifies, as provided in section 10A.31, subdivisions 6 and 7, may receive from the candidate's party account in the state elections campaign account. This estimate must be based upon the allocations and formulas in section 10A.31, subdivisions 5 and 5a, any necessary vote totals provided by the secretary of state to apply the formulas in section 10A.31, subdivisions 5 and 5a, and the amount of money expected to be available after 100 percent of the tax returns have been processed.

Subd. 2.

Publication, certification, and notification procedures.

Before the first day of filing for office, the board must publish and forward to all filing officers the estimates calculated and certified under subdivision 1 along with a copy of section 10A.25, subdivision 10. Within one week after the last day for filing for office, the secretary of state must certify to the board the name, address, office sought, and party affiliation of each candidate who has filed with that office an affidavit of candidacy or petition to appear on the ballot. The auditor of each county must certify to the board the same information for each candidate who has filed with that county an affidavit of candidacy or petition to appear on the ballot. Within two weeks after the last day for filing for office, the board must notify all candidates of their estimated minimum amount. The board must include with the notice a form for the agreement provided in section 10A.322 along with a copy of section 10A.25, subdivision 10.

10A.322 SPENDING LIMIT AGREEMENTS.

Subdivision 1.

Agreement by candidate.

(a) As a condition of receiving a public subsidy, a candidate must sign and file with the board a written agreement in which the candidate agrees that the candidate will comply with sections 10A.25; 10A.27, subdivision 10; 10A.324; and 10A.38.

(b) Before the first day of filing for office, the board must forward agreement forms to all filing officers. The board must also provide agreement forms to candidates on request at any time. The candidate must file the agreement with the board at least three weeks before the candidate's state primary. An agreement may not be filed after that date. An agreement once filed may not be rescinded.

(c) The board must notify the commissioner of revenue of any agreement signed under this subdivision.

(d) Notwithstanding paragraph (b), if a vacancy occurs that will be filled by means of a special election and the filing period does not coincide with the filing period for the general election, a candidate may sign and submit a spending limit agreement not later than the day after the close of the filing period for the special election for which the candidate filed.

Subd. 2.

How long agreement is effective.

The agreement, insofar as it relates to the expenditure limits in section 10A.25, as adjusted by section 10A.255, and the contribution limit in section 10A.27, subdivision 10, remains effective for candidates until the dissolution of the principal campaign committee of the candidate or the end of the first election cycle completed after the agreement was filed, whichever occurs first.

Subd. 4.

Refund receipt forms; penalty.

(a) The board must make available to a political party on request and to any candidate for whom an agreement under this section is effective, a supply of official refund receipt forms that state in boldface type that:

(1) a contributor who is given a receipt form is eligible to claim a refund as provided in section 290.06, subdivision 23; and

(2) if the contribution is to a candidate, that the candidate has signed an agreement to limit campaign expenditures as provided in this section.

The forms must provide duplicate copies of the receipt to be attached to the contributor's claim.

(b) The willful issuance of an official refund receipt form or a facsimile of one to any of the candidate's contributors by a candidate or treasurer of a candidate who did not sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed by the board.

(c) The willful issuance of an official refund receipt form or a facsimile to an individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to a civil penalty of up to $3,000 imposed by the board.

(d) A violation of paragraph (b) or (c) is a misdemeanor.

10A.323 AFFIDAVIT OF CONTRIBUTIONS.

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

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

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

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

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

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

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

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

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

(ii) any in-kind contribution; and

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

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

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

155A.23 DEFINITIONS.

Subd. 8.

Manager.

A "manager" is any person who is a cosmetologist, esthetician, advanced practice esthetician, nail technician practitioner, or eyelash technician practitioner, and who has a manager license and provides any services under that license, as defined in subdivision 3.

349A.08 LOTTERY PRIZES.

Subd. 3.

Prizes won by persons under age 18.

The following provisions govern the payment of a lottery prize to a person under age 18:

(1) if the prize is less than $5,000, the director may give a draft, payable to the order of the person under age 18, to the person's parents, custodial parent if one parent has custody, guardian, or other adult member of the person's family; and

(2) if the prize is $5,000 or more, the director shall deposit the prize with the district court and section 540.08 applies to the investment and distribution of the money.