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Key: (1) language to be deleted (2) new language

CHAPTER 4--S.F.No. 1

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, and retirement funds; changing provisions in state government operations; changing provisions in military affairs and veterans affairs, campaign finance, and elections; providing for the sale and regulation of intoxicating liquor;

amending Minnesota Statutes 2016, sections 3.305, subdivision 1; 3.8843, subdivision 7; 3.971, subdivisions 2, 6; 3.972, by adding a subdivision; 3.98, subdivisions 1, 4; 3.987, subdivision 1; 6.481, subdivisions 3, 6; 6.56, subdivision 2; 6.581, subdivision 4; 10A.01, subdivisions 12, 16; 10A.025, subdivision 1a; 10A.04, by adding a subdivision; 10A.071, subdivision 1; 10A.09, subdivisions 5, 6; 10A.15, by adding a subdivision; 10A.20, subdivision 3; 10A.25, subdivision 2; 10A.27, by adding subdivisions; 10A.31, by adding a subdivision; 10A.323; 15.0145, subdivision 5; 15A.083, subdivisions 6a, 7; 16A.90; 16B.055, subdivision 1; 16B.2405; 16B.4805, subdivision 2; 16E.0466; 43A.17, subdivision 11; 43A.24, by adding a subdivision; 85.0505, by adding a subdivision; 138.081; 138.665, subdivisions 2, 3; 138.69; 155A.30, subdivision 5; 190.19, subdivisions 2, 2a; 196.05, subdivision 1; 197.236, subdivision 9; 197.791, subdivisions 2, 3, 4, 5, 5a; 270.44; 270.45; 290.0681, subdivisions 1, 2, 7, 9; 340A.22, subdivisions 1, 2; 340A.24, subdivision 3; 340A.28, subdivision 1; 340A.301, by adding a subdivision; 340A.315, subdivision 7; 340A.504, subdivision 6; 349A.08, subdivision 2; 349A.10, subdivision 6; 352D.06, subdivision 1; 353.27, subdivision 3c; 353.505; 471.193, subdivision 6; 508.12, subdivision 1; 518A.79, by adding a subdivision; Laws 1999, chapter 202, section 13, as amended; Laws 2016, chapter 127, section 8; Laws 2017, chapter 21, sections 1, subdivision 2; 3, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 3; 6; 10A; 15; 16B; 118A; 134A; 197; 206; 270; 340A; repealing Minnesota Statutes 2016, sections 6.581, subdivision 1; 204B.48; 349A.08, subdivision 3; Laws 2001, chapter 193, section 10, as amended; Laws 2013, chapter 137, article 4, section 6; Minnesota Rules, parts 4501.0300, subpart 3; 4501.0500, subpart 2; 4503.0200, subpart 6; 4503.0300, subpart 4; 4503.0400, subpart 1; 4503.0500, subparts 5, 8; 4503.0700, subparts 2, 3; 4503.1300, subpart 5; 4503.1400, subparts 8, 9; 4503.1450, subparts 1, 3; 4503.1600; 4503.1700; 4503.1800; 4505.0100, subpart 3; 4505.0900, subparts 2, 3, 4, 5, 6, 7; 4511.0500, subpart 2; 4512.0100, subparts 2, 4, 5; 4525.0210, subpart 1.

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 82,193,000 new text end new text begin $ new text end new text begin 82,169,000 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 82,065,000 new text end new text begin 82,041,000 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

*(Subdivisions 2 and 3 were indicated as vetoed by the governor. At the time of publication, the Second Judicial District Court held the governor's line-item veto unconstitutional and the governor appealed this decision. See The Ninetieth Minnesota State Senate et al. v. Mark B. Dayton, in his official capacity as Governor of the State of Minnesota, et al., Second Judicial District Court, No. 62-CV-17-3601, judgment entered July 20, 2017, petition for review granted July 26, 2017, No. A17-1142.)

new text begin Subd. 4. new text end

new text begin Legislative Coordinating Commission new text end

new text begin 17,511,000 new text end new text begin 17,681,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 17,383,000 new text end new text begin 17,553,000 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 Appropriations provided by this subdivision may be used for designated staff to support the following offices and commissions: Office of the Legislative Auditor; Office of the Revisor of Statutes; Legislative Reference Library; Geographic Information Services; Legislative Budget Office; Legislative-Citizen Commission on Minnesota Resources; Legislative Commission on Pensions and Retirement; Legislative Water Commission; Mississippi River Parkway Commission; Legislative Energy Commission; and the Lessard-Sams Outdoor Heritage Council. The operation of all other joint offices and commissions must be supported by the central administrative staff of the Legislative Coordinating Commission. This appropriation may additionally be used for central administrative staff to support the work of the Economic Status of Women Advisory Committee. 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

new text begin The base for the Legislative Budget Office is $818,000 for fiscal year 2020 and each year thereafter. new text end

new text begin Legislative Auditor. $6,744,000 the first year and $6,564,000 the second year are for the Office of the Legislative Auditor. new text end

new text begin Of these amounts, $130,000 the first year is for the transit financial activity reviews required by Minnesota Statutes, section 3.972, subdivision 4. new text end

new text begin No later than January 15, 2018, the legislative auditor must complete an assessment of the adequacy of the county audits performed by the state auditor in calendar year 2016. The standards for conducting the assessment must be identical to those described in the report of the state auditor dated March 2017, titled "Assessing the Adequacy of 2015 County Audits Performed by Private CPA Firms." new text end

new text begin Revisor of Statutes. $6,430,000 the first year and $6,093,000 the second year are for the Office of the Revisor of Statutes. new text end

new text begin Of these amounts, $250,000 in the first year is for upgrades and repairs to the information technology data center located in the State Office Building. new text end

new text begin new text begin Legislative Reference Library.new text end $1,622,000 the first year and $1,445,000 the second year are for the Legislative Reference Library. new text end

new text begin Of these amounts, $177,000 the first year is for the digital preservation of audio recordings documenting committee hearings and floor sessions of the legislature. new text end

Sec. 3.

new text begin GOVERNOR AND LIEUTENANT GOVERNOR new text end

new text begin $ new text end new text begin 3,616,000 new text end new text begin $ new text end new text begin 3,616,000 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

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 9,748,000 new text end new text begin $ new text end new text begin 10,037,000 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 7,449,000 new text end new text begin 7,694,000 new text end

new text begin Subd. 3. new text end

new text begin Legal and Special Investigations new text end

new text begin 344,000 new text end new text begin 344,000 new text end

new text begin Subd. 4. new text end

new text begin Government Information new text end

new text begin 702,000 new text end new text begin 746,000 new text end

new text begin Subd. 5. new text end

new text begin Pension Oversight new text end

new text begin 485,000 new text end new text begin 485,000 new text end

new text begin Subd. 6. new text end

new text begin Operations Management new text end

new text begin 488,000 new text end new text begin 488,000 new text end

new text begin Subd. 7. new text end

new text begin Constitutional Office new text end

new text begin 280,000 new text end new text begin 280,000 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 24,925,000 new text end new text begin $ new text end new text begin 24,925,000 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 22,125,000 new text end new text begin 22,125,000 new text end
new text begin State Government Special Revenue new text end new text begin 2,405,000 new text end new text begin 2,405,000 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 3,948,000 new text end new text begin 3,948,000 new text end

new text begin Subd. 3. new text end

new text begin Regulatory Law and Professions new text end

new text begin 5,182,000 new text end new text begin 5,182,000 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 2,403,000 new text end new text begin 2,403,000 new text end
new text begin State Government Special Revenue new text end new text begin 2,384,000 new text end new text begin 2,384,000 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 6,654,000 new text end new text begin 6,654,000 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 6,633,000 new text end new text begin 6,633,000 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 3,254,000 new text end new text begin 3,254,000 new text end

new text begin Subd. 6. new text end

new text begin Civil Litigation new text end

new text begin 1,617,000 new text end new text begin 1,617,000 new text end

new text begin Subd. 7. new text end

new text begin Administrative Operations new text end

new text begin 4,270,000 new text end new text begin 4,270,000 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 13,631,000 new text end new text begin $ new text end new text begin 6,742,000 new text end

new text begin The base for fiscal year 2020 is $6,631,000 and the base for fiscal year 2021 is $6,631,000. 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 642,000 new text end new text begin 655,000 new text end

new text begin Subd. 3. new text end

new text begin Safe at Home new text end

new text begin 659,000 new text end new text begin 676,000 new text end

new text begin Subd. 4. new text end

new text begin Business Services new text end

new text begin 1,750,000 new text end new text begin 1,502,000 new text end

new text begin Subd. 5. new text end

new text begin Elections new text end

new text begin 10,580,000 new text end new text begin 3,909,000 new text end

new text begin Of these amounts, $7,000,000 the first year is for election equipment grants under Minnesota Statutes, section 206.95. This appropriation is available until June 30, 2020. 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 1,036,000 new text end new text begin $ new text end new text begin 1,044,000 new text end

Sec. 8.

new text begin STATE BOARD OF INVESTMENT 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 Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin 8,184,000 new text end new text begin $ new text end new text begin 8,186,000 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 397,000 new text end new text begin 399,000 new text end
new text begin Workers' Compensation new text end new text begin 7,787,000 new text end new text begin 7,787,000 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 Campaign Violations new text end

new text begin 115,000 new text end new text begin 115,000 new text end

new text begin These amounts are 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 Subd. 3. new text end

new text begin Data Practices new text end

new text begin 20,000 new text end new text begin 22,000 new text end

new text begin These amounts are 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

new text begin Subd. 4. new text end

new text begin Municipal Boundary Adjustments new text end

new text begin 262,000 new text end new text begin 262,000 new text end

Sec. 10.

new text begin OFFICE OF MN.IT SERVICES new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin 2,642,000 new text end new text begin $ new text end new text begin 2,662,000 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 The state chief information officer must prioritize use of appropriations provided by this section to enhance cybersecurity across state government. new text end

new text begin Subd. 2. new text end

new text begin State Chief Information Officer new text end

new text begin 1,336,000 new text end new text begin 1,356,000 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, the Office of 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

new text begin Subd. 3. new text end

new text begin Geospatial Information Office new text end

new text begin 871,000 new text end new text begin 871,000 new text end

new text begin Subd. 4. new text end

new text begin Enterprise IT Security new text end

new text begin 435,000 new text end new text begin 435,000 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 24,395,000 new text end new text begin $ new text end new text begin 23,817,000 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 9,628,000 new text end new text begin 9,400,000 new text end

new text begin This appropriation includes funds for information technology project services and support subject to the provisions of Minnesota Statutes, section 16E.0466. Any ongoing information technology costs must be incorporated into the service level agreement and must be paid to the Office of MN.IT Services by the commissioner of administration under the rates and mechanism specified in that agreement. new text end

new text begin Council on Developmental Disabilities. $74,000 the first year and $74,000 the second year are for the Council on Developmental Disabilities. new text end

new text begin Olmstead Plan. new text end new text begin $148,000 each year is for the Olmstead plan. new text end

new text begin Continuous Improvement Program. $417,000 the first year and $418,000 the second year are for the continuous improvement program. new text end

new text begin Materials Management. new text end new text begin $2,408,000 the first year and $2,409,000 the second year are for materials management. new text end

new text begin Plant Management. new text end new text begin $438,000 each year is for plant management. new text end

new text begin Real Estate and Construction Services. new text end new text begin $2,763,000 the first year and $2,811,000 the second year are for real estate and construction services. new text end

new text begin Enterprise Real Property. new text end new text begin $711,000 the first year and $717,000 the second year are for enterprise real property. new text end

new text begin Small Agency Resource Team (SmART). new text end new text begin $466,000 the first year and $467,000 the second year are for the small agency resource team. new text end

new text begin State Agency Accommodation Reimbursement. $200,000 the first year and $200,000 the second year are credited to the accommodation account established in Minnesota Statutes, section 16B.4805. new text end

new text begin new text begin Community Services.new text end $2,003,000 the first year and $1,718,000 the second year are for community services. new text end

new text begin (a) $215,000 the first year and $215,000 the second year are for the state archaeologist. new text end

new text begin (b) $525,000 the first year and $525,000 the second year are for information policy analysis. new text end

new text begin (c) $737,000 the first year and $737,000 the second year are for the state demographer. Of this amount, $190,000 each year is for the 2020 census. new text end

new text begin (d) $130,000 the first year and $130,000 the second year are for the Office of Grants Management. new text end

new text begin (e) $300,000 the first year is for the State Historic Preservation Office. The base is $200,000 in fiscal year 2020 and each year thereafter. new text end

new text begin (f) $96,000 the first year and $111,000 the second year are for operating adjustments and may be transferred to activities under paragraphs (a) to (d). new text end

new text begin Subd. 3. new text end

new text begin Strategic Management Services new text end

new text begin 2,212,000 new text end new text begin 2,245,000 new text end

new text begin new text begin Executive Leadership/Partnerships.new text end $702,000 the first year and $719,000 the second year are for executive leadership/partnerships. new text end

new text begin new text begin School Trust Lands Director.new text end $185,000 each year is for school trust lands director. new text end

new text begin new text begin Financial Management and Reporting.new text end $871,000 the first year and $884,000 the second year are for financial management and reporting. new text end

new text begin new text begin Human Resources.new text end $454,000 the first year and $457,000 the second year are for human resources. new text end

new text begin Subd. 4. new text end

new text begin Fiscal Agent new text end

new text begin 12,555,000 new text end new text begin 12,172,000 new text end

new text begin In-Lieu of Rent. new text end new text begin $9,374,000 the first year and $9,391,000 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 Television. 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) The commissioner of administration must consider the recommendations of the Minnesota Public Television Association before allocating the amounts appropriated in paragraphs (a) and (b) for equipment or matching grants. new text end

new text begin Public Radio. (a) $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 (b) $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 (c) $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 (d) $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 (e) The appropriations in paragraphs (a) to (d) may not be used for indirect costs claimed by an institution or governing body. new text end

new text begin (f) The commissioner of administration must consider the recommendations of the Association of Minnesota Public Educational Radio Stations before awarding grants under Minnesota Statutes, section 129D.14, using the appropriations in paragraphs (a) and (b). 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, 2017. new text end

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

new text begin (h) $162,000 each year is for transfer to the Minnesota Film and TV Board. The appropriation in each year is available only upon receipt by the board of $1 in matching contributions of money or in-kind contributions from nonstate sources for every $3 provided by this appropriation, except that each year up to $50,000 is available on July 1 even if the required matching contribution has not been received by that date. 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 347,000 new text end new text begin $ new text end new text begin 350,000 new text end

Sec. 13.

new text begin MINNESOTA MANAGEMENT AND BUDGET new text end

new text begin $ new text end new text begin 25,497,000 new text end new text begin $ new text end new text begin 26,076,000 new text end

new text begin Subdivision 1. new text end

new text begin Appropriations 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 This appropriation includes funds for information technology project services and support subject to the provisions of Minnesota Statutes, section 16E.0466. Any ongoing information technology costs must be incorporated into the service level agreement and must be paid to the Office of MN.IT Services by the commissioner of management and budget under the rates and mechanism specified in that agreement. new text end

new text begin Subd. 2. new text end

new text begin Accounting Services new text end

new text begin 5,060,000 new text end new text begin 5,060,000 new text end

new text begin Subd. 3. new text end

new text begin Budget Services new text end

new text begin 3,443,000 new text end new text begin 3,443,000 new text end

new text begin Subd. 4. new text end

new text begin Economic Analysis new text end

new text begin 548,000 new text end new text begin 548,000 new text end

new text begin Subd. 5. new text end

new text begin Debt Management new text end

new text begin 475,000 new text end new text begin 475,000 new text end

new text begin Subd. 6. new text end

new text begin Enterprise Communications and Planning new text end

new text begin 1,074,000 new text end new text begin 1,074,000 new text end

new text begin Subd. 7. new text end

new text begin Enterprise Human Resources new text end

new text begin 3,469,000 new text end new text begin 3,469,000 new text end

new text begin Subd. 8. new text end

new text begin Labor Relations new text end

new text begin 1,123,000 new text end new text begin 1,123,000 new text end

new text begin Subd. 9. new text end

new text begin Agency Administration new text end

new text begin 10,305,000 new text end new text begin 10,884,000 new text end

new text begin (a) $632,000 the first year and $1,204,000 the second year are for operating adjustments and may be transferred to any other activity under this section. new text end

new text begin (b) $1,165,000 the first year and $1,172,000 the second year are for system security and risk management. The base is $922,000 in fiscal year 2020 and each year thereafter. 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 153,506,000 new text end new text begin $ new text end new text begin 157,401,000 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 149,270,000 new text end new text begin 153,165,000 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 This appropriation includes funds for information technology project services and support subject to the provisions of Minnesota Statutes, section 16E.0466. Any ongoing information technology costs must be incorporated into the service level agreement and must be paid to the Office of MN.IT Services by the commissioner of revenue under the rates and mechanism specified in that agreement. This section is not effective until the day following enactment of First Special Session 2017, House File No. 1. new text end

new text begin Subd. 2. new text end

new text begin Tax System Management new text end

new text begin 124,890,000 new text end new text begin 128,785,000 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 120,654,000 new text end new text begin 124,549,000 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) Operations Support new text end
new text begin General new text end new text begin 10,134,000 new text end new text begin 10,134,000 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 (b) Appeals, Legal Services, and Tax Research new text end
new text begin General new text end new text begin 7,251,000 new text end new text begin 7,251,000 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) Payment and Return Processing new text end
new text begin General new text end new text begin 13,177,000 new text end new text begin 13,177,000 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) Administration of State Taxes new text end
new text begin General new text end new text begin 57,408,000 new text end new text begin 57,248,000 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 (1) $160,000 from the general fund in the first year is for administration of a first-time home buyer savings account program. This appropriation is canceled to the general fund if income tax provisions related to first-time home buyer savings accounts are not enacted by law at the 2017 regular or special legislative session. new text end

new text begin (2) $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 For the fiscal year 2020-2021 biennial budget, the commissioner must develop a budget structure that reflects actual spending to the budget activity level. This detail must be available in the Budget Planning and Analysis System. new text end

new text begin (e) Technology Development, Implementation, and Support new text end
new text begin General new text end new text begin 22,784,000 new text end new text begin 22,784,000 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) Property Tax Administration and State Aid new text end
new text begin General new text end new text begin 4,173,000 new text end new text begin 4,173,000 new text end
new text begin (g) Effective and Efficient Tax Service new text end new text begin 5,727,000 new text end new text begin 9,782,000 new text end

new text begin These appropriations are for increased operation costs. The commissioner may transfer money in these appropriations to other activities in this subdivision. new text end

new text begin Subd. 3. new text end

new text begin Debt Collection Management new text end

new text begin 28,616,000 new text end new text begin 28,616,000 new text end

Sec. 15.

new text begin HUMAN RIGHTS new text end

new text begin $ new text end new text begin 4,393,000 new text end new text begin $ new text end new text begin 4,580,000 new text end

Sec. 16.

new text begin GAMBLING CONTROL new text end

new text begin $ new text end new text begin 3,422,000 new text end new text begin $ new text end new text begin 3,457,000 new text end

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

Sec. 17.

new text begin RACING COMMISSION new text end

new text begin $ new text end new text begin 845,000 new text end new text begin $ new text end new text begin 908,000 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. 18.

new text begin STATE LOTTERY new text end

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

Sec. 19.

new text begin AMATEUR SPORTS COMMISSION new text end

new text begin $ new text end new text begin 303,000 new text end new text begin $ new text end new text begin 305,000 new text end

Sec. 20.

new text begin COUNCIL ON MINNESOTANS OF AFRICAN HERITAGE new text end

new text begin $ new text end new text begin 403,000 new text end new text begin $ new text end new text begin 406,000 new text end

Sec. 21.

new text begin COUNCIL ON LATINO AFFAIRS new text end

new text begin $ new text end new text begin 477,000 new text end new text begin $ new text end new text begin 494,000 new text end

Sec. 22.

new text begin COUNCIL ON ASIAN-PACIFIC MINNESOTANS new text end

new text begin $ new text end new text begin 457,000 new text end new text begin $ new text end new text begin 464,000 new text end

Sec. 23.

new text begin INDIAN AFFAIRS COUNCIL new text end

new text begin $ new text end new text begin 580,000 new text end new text begin $ new text end new text begin 584,000 new text end

Sec. 24.

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 23,393,000 new text end new text begin $ new text end new text begin 23,893,000 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 23,072,000 new text end new text begin 23,572,000 new text end

new text begin $750,000 the first year and $750,000 the second year are for digital preservation and access, including planning and implementation of a program to preserve and make available resources related to Minnesota history. These are onetime appropriations. new text end

new text begin Subd. 3. new text end

new text begin Fiscal Agent new text end

new text begin (a) Global Minnesota new text end new text begin 39,000 new text end new text begin 39,000 new text end
new text begin (b) 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 (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 (e) 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 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. 25.

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 7,534,000 new text end new text begin $ new text end new text begin 7,539,000 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 595,000 new text end new text begin 600,000 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 Any unencumbered balance remaining in this section the first year does not cancel, but is available for the second year. new text end

new text begin 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. 26.

new text begin MINNESOTA HUMANITIES CENTER new text end

new text begin $ new text end new text begin 950,000 new text end new text begin $ new text end new text begin 950,000 new text end

new text begin (a) $325,000 each year is for the Healthy Eating, Here at Home program under Minnesota Statutes, section 138.912. No more than three percent of the appropriation may be used for the nonprofit administration of this program. new text end

new text begin (b) $250,000 each year is for grants to the Veterans Defense Project. Grants must be used to support, through education and outreach, military veterans who are involved with the criminal justice system. These are onetime appropriations. new text end

Sec. 27.

new text begin BOARD OF ACCOUNTANCY new text end

new text begin $ new text end new text begin 645,000 new text end new text begin $ new text end new text begin 649,000 new text end

Sec. 28.

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 799,000 new text end new text begin $ new text end new text begin 804,000 new text end

Sec. 29.

new text begin BOARD OF COSMETOLOGIST EXAMINERS new text end

new text begin $ new text end new text begin 2,775,000 new text end new text begin $ new text end new text begin 2,785,000 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. 30.

new text begin BOARD OF BARBER EXAMINERS new text end

new text begin $ new text end new text begin 341,000 new text end new text begin $ new text end new text begin 343,000 new text end

Sec. 31.

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. 32.

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. 33.

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. 34.

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 General employees retirement plan of the Public Employees Retirement Association relating to the merged former MERF division. 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. 35.

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. 36.

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. 37.

new text begin MILITARY AFFAIRS 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 24,836,000 new text end new text begin $ new text end new text begin 22,920,000 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 Maintenance of Training Facilities new text end

new text begin 9,677,000 new text end new text begin 9,694,000 new text end

new text begin Of the funds transferred to maintenance of training facilities in Laws 2015, chapter 77, article 1, section 36, subdivision 4, $2,000,000 in fiscal year 2017 may be transferred to the enlistment incentives appropriation to address a projected fiscal year 2017 deficit in the enlistment incentives program. new text end

new text begin Subd. 3. new text end

new text begin General Support new text end

new text begin 3,090,000 new text end new text begin 3,114,000 new text end

new text begin Subd. 4. new text end

new text begin Enlistment Incentives new text end

new text begin 12,069,000 new text end new text begin 10,112,000 new text end

new text begin The appropriations in this subdivision are available until June 30, 2021, except that any unspent amounts allocated to a program otherwise supported by this appropriation are canceled to the general fund upon receipt of federal funds in the same amount to support administration of that program. new text end

new text begin If appropriations for either year of the biennium are insufficient, the appropriation from the other year is available. new text end

Sec. 38.

new text begin VETERANS AFFAIRS 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 75,010,000 new text end new text begin $ new text end new text begin 75,497,000 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 Veterans Programs and Services new text end

new text begin 17,375,000 new text end new text begin 17,440,000 new text end

new text begin Veterans Service Organizations. new text end new text begin $353,000 each year is for grants to the following congressionally chartered veterans service organizations as designated by the commissioner: Disabled American Veterans, Military Order of the Purple Heart, the American Legion, Veterans of Foreign Wars, Vietnam Veterans of America, AMVETS, and Paralyzed Veterans of America. This funding must be allocated in direct proportion to the funding currently being provided by the commissioner to these organizations. new text end

new text begin Minnesota Assistance Council for Veterans. $750,000 each year is for a grant to the Minnesota Assistance Council for Veterans to provide assistance throughout Minnesota to veterans and their families who are homeless or in danger of homelessness, including assistance with the following: new text end

new text begin (1) utilities; new text end

new text begin (2) employment; and new text end

new text begin (3) legal issues. new text end

new text begin The assistance authorized under this paragraph must be made only to veterans who have resided in Minnesota for 30 days prior to application for assistance and according to other guidelines established by the commissioner. In order to avoid duplication of services, the commissioner must ensure that this assistance is coordinated with all other available programs for veterans. new text end

new text begin new text begin Honor Guards.new text end $200,000 each year is for compensation for honor guards at the funerals of veterans under Minnesota Statutes, section 197.231. new text end

new text begin new text begin Minnesota GI Bill.new text end $200,000 each year is for the costs of administering the Minnesota GI Bill postsecondary educational benefits, on-the-job training, and apprenticeship program under Minnesota Statutes, section 197.791. new text end

new text begin new text begin Gold Star Program.new text end $100,000 each year is for administering the Gold Star Program for surviving family members of deceased veterans. new text end

new text begin new text begin County Veterans Service Office.new text end $1,100,000 each year is for funding the County Veterans Service Office grant program under Minnesota Statutes, section 197.608. new text end

new text begin new text begin Veterans Journey Home.new text end $350,000 each year is for grants to the veterans Journey Home program. Grants must support the development of new or rehabilitated affordable housing dedicated for low-to-moderate income veterans and their families. These are onetime appropriations. new text end

new text begin Subd. 3. new text end

new text begin Veterans Health Care new text end

new text begin 57,635,000 new text end new text begin 58,057,000 new text end

new text begin The general fund appropriations made to the department may be transferred to a veterans homes special revenue account in the special revenue fund in the same manner as other receipts are deposited according to Minnesota Statutes, section 198.34, and are appropriated to the department for the operation of veterans homes facilities and programs. new text end

new text begin No later than January 15, 2018, the commissioner must submit a report to the legislative committees with jurisdiction over veterans affairs and state government finance on reserve amounts maintained in the veterans homes special revenue account. The report must detail current and historical amounts maintained as a reserve, and uses of those amounts. The report must also include data on the utilization of existing veterans homes, including current and historical bed capacity and usage, staffing levels and staff vacancy rates, and staff-to-resident ratios. new text end

new text begin new text begin Maximize Federal Reimbursements. new text end The department will seek opportunities to maximize federal reimbursements of Medicare-eligible expenses and will provide annual reports to the commissioner of management and budget on the federal Medicare reimbursements received. Contingent upon future federal Medicare receipts, reductions to the homes' general fund appropriation may be made. new text end

Sec. 39.

new text begin APPROPRIATION CANCELLATIONS. new text end

new text begin All unspent funds 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

Sec. 40.

new text begin APPROPRIATION TRANSFERS. new text end

new text begin A commissioner of an executive branch agency receiving appropriations within this article may transfer appropriations for staff positions, salaries, and technology within the agency to meet its statutory obligations. The commissioner shall inform the chairs and ranking minority members of the committees in the house of representatives and senate with jurisdiction over state government and veterans finance quarterly about transfers made under this section. new text end

Sec. 41.

new text begin DATA COMPLAINTS; DEFICIENCY. new text end

new text begin $34,000 in fiscal year 2017 is appropriated from the general fund to the Office of Administrative Hearings for the cost of considering complaints filed under Minnesota Statutes, section 211B.32, and for the cost of considering data practices complaints filed under Minnesota Statutes, section 13.085. new text end

Sec. 42.

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 $4,012,000 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. 43.

new text begin BASE BUDGET REPORT. new text end

new text begin No later than October 15, 2017, the commissioners of management and budget, revenue, and veterans affairs must each submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over state government finance that detail the agency's base budget, by fiscal year. At a minimum, the report must include: new text end

new text begin (1) a description of each appropriation rider enacted for the agency, and the year the rider was first enacted in a substantially similar form; new text end

new text begin (2) a description of the agency's use of appropriated funds that are not directed by a rider, including an itemization of programs that appeared in a rider in a prior biennium and continue to receive funding despite no longer appearing in a rider; and new text end

new text begin (3) an itemization of any appropriations provided to the agency under a provision of statute or the state constitution. new text end

ARTICLE 2

STATE GOVERNMENT OPERATIONS

Section 1.

Minnesota Statutes 2016, section 3.305, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) "Legislative commission" means a joint commission, committee, or other entity in the legislative branch composed exclusively of members of the senate and the house of representatives.

(b) "Joint offices" means the Revisor of Statutes, Legislative Reference Library, the Office of Legislative Auditor, new text begin the Legislative Budget Office, new text end and any other joint legislative service office.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 8, 2019. new text end

Sec. 2.

Minnesota Statutes 2016, section 3.8843, subdivision 7, is amended to read:

Subd. 7.

Expiration.

This section expires June 30, deleted text begin 2017deleted text end new text begin 2019new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [3.8853] LEGISLATIVE BUDGET OFFICE. new text end

new text begin Subdivision 1. new text end

new text begin Establishment; duties. new text end

new text begin The Legislative Budget Office is established under control of the Legislative Coordinating Commission to provide the house of representatives and senate with nonpartisan, accurate, and timely information on the fiscal impact of proposed legislation, without regard to political factors. new text end

new text begin Subd. 2. new text end

new text begin Staff. new text end

new text begin The Legislative Coordinating Commission must appoint a director who may hire staff necessary to do the work of the office. The director serves a term of six years and may not be removed during a term except for cause. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 8, 2019. new text end

Sec. 4.

Minnesota Statutes 2016, section 3.971, subdivision 2, is amended to read:

Subd. 2.

Staff; compensation.

new text begin (a) new text end The legislative auditor shall establish a Financial Audits Division and a Program Evaluation Division to fulfill the duties prescribed in this section.

new text begin (b)new text end Each division may be supervised by a deputy auditor, appointed by the legislative auditor, with the approval of the commission, for a term coterminous with the legislative auditor's term. The deputy auditors may be removed before the expiration of their terms only for cause. The legislative auditor and deputy auditors may each appoint a confidential secretary to serve at pleasure. The salaries and benefits of the legislative auditor, deputy auditors and confidential secretaries shall be determined by the compensation plan approved by the Legislative Coordinating Commission. The deputy auditors may perform and exercise the powers, duties and responsibilities imposed by law on the legislative auditor when authorized by the legislative auditor.

new text begin (c) The legislative auditor must appoint a fiscal oversight officer with duties that include performing the review under section 3.972, subdivision 4. new text end

new text begin (d)new text end The deputy auditors and the confidential secretaries serve in the unclassified civil service, butnew text begin the fiscal oversight officer andnew text end all other employees of the legislative auditor are in the classified civil service. Compensation for employees of the legislative auditor in the classified service shall be governed by a plan prepared by the legislative auditor and approved by the Legislative Coordinating Commission and the legislature under section 3.855, subdivision 3.

new text begin (e)new text end While in office, a person appointed deputy for the Financial Audit Division must hold an active license as a certified public accountant.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2016, section 3.971, subdivision 6, is amended to read:

Subd. 6.

Financial audits.

The legislative auditor shall audit the financial statements of the state of Minnesota required by section 16A.50 and, as resources permit, Minnesota State Colleges and Universities, the University of Minnesota, state agencies, departments, boards, commissions, offices, courts, and other organizations subject to audit by the legislative auditor, including, but not limited to, the State Agricultural Society, Agricultural Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical Society, ClearWay Minnesota, Minnesota Sports Facilities Authority,new text begin Metropolitan Council,new text end Metropolitan Airports Commission, and Metropolitan Mosquito Control District. Financial audits must be conducted according to generally accepted government auditing standards. The legislative auditor shall see that all provisions of law respecting the appropriate and economic use of public funds and other public resources are complied with and may, as part of a financial audit or separately, investigate allegations of noncompliance.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 3.972, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Certain transit financial activity reporting. new text end

new text begin (a) The legislative auditor must perform a transit financial activity review of financial information for the Metropolitan Council's Transportation Division and the joint powers board under section 297A.992. Within 14 days of the end of each fiscal quarter, the legislative auditor must submit the review to the Legislative Audit Commission and the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance, finance, and ways and means. new text end

new text begin (b) At a minimum, each transit financial activity review must include: new text end

new text begin (1) a summary of monthly financial statements, including balance sheets and operating statements, that shows income, expenditures, and fund balance; new text end

new text begin (2) a list of any obligations and agreements entered into related to transit purposes, whether for capital or operating, including but not limited to bonds, notes, grants, and future funding commitments; new text end

new text begin (3) the amount of funds in clause (2) that has been committed; new text end

new text begin (4) independent analysis by the fiscal oversight officer of the fiscal viability of revenues and fund balance compared to expenditures, taking into account: new text end

new text begin (i) all expenditure commitments; new text end

new text begin (ii) cash flow; new text end

new text begin (iii) sufficiency of estimated funds; and new text end

new text begin (iv) financial solvency of anticipated transit projects; and new text end

new text begin (5) a notification concerning whether the requirements under paragraph (c) have been met. new text end

new text begin (c) The Metropolitan Council and the joint powers board under section 297A.992 must produce monthly financial statements as necessary for the review under paragraph (b), clause (1), and provide timely information as requested by the legislative auditor. 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. 7.

Minnesota Statutes 2016, section 3.98, subdivision 1, is amended to read:

Subdivision 1.

Preparationnew text begin ; dutiesnew text end .

new text begin (a) new text end The head or chief administrative officer of each department or agency of the state government, including the Supreme Court, shallnew text begin cooperate with the Legislative Budget Office and the Legislative Budget Office mustnew text end prepare a fiscal note at the request of the chair of the standing committee to which a bill has been referred, or the chair of the house of representatives Ways and Means Committee, or the chair of the senate Committee on Finance.

new text begin (b) Upon request of the Legislative Budget Office, the head or chief administrative officer of each department or agency of state government, including the Supreme Court, must promptly supply all information necessary for the Legislative Budget Office to prepare an accurate and timely fiscal note. new text end

new text begin (c) The Legislative Budget Office may adopt standards and guidelines governing timing of responses to requests for information and governing access to data, consistent with laws governing access to data. Agencies must comply with these standards and guidelines and the Legislative Budget Office must publish them on the office's Web site. new text end

new text begin (d) new text end For purposes of this subdivision, "Supreme Court" includes all agencies, committees, and commissions supervised or appointed by the state Supreme Court or the state court administrator.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 8, 2019. new text end

Sec. 8.

Minnesota Statutes 2016, section 3.98, subdivision 4, is amended to read:

Subd. 4.

Uniform procedure.

The deleted text begin commissioner of management and budgetdeleted text end new text begin Legislative Budget Officenew text end shall prescribe a uniform procedure to govern the departments and agencies of the state in complying with the requirements of this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 8, 2019. new text end

Sec. 9.

Minnesota Statutes 2016, section 3.987, subdivision 1, is amended to read:

Subdivision 1.

Local impact notes.

The deleted text begin commissioner of management and budgetdeleted text end new text begin Legislative Budget Officenew text end shall coordinate the development of a local impact note for any proposed legislation deleted text begin introduced after June 30, 1997,deleted text end upon request of the chair or the ranking minority member of either legislative Tax, Finance, or Ways and Means Committee. Upon receipt of a request to prepare a local impact note, the deleted text begin commissionerdeleted text end new text begin officenew text end must notify the authors of the proposed legislation that the request has been made. The local impact note must be made available to the public upon request. If the action is among the exceptions listed in section 3.988, a local impact note need not be requested nor prepared. The deleted text begin commissionerdeleted text end new text begin officenew text end shall make a reasonable and timely estimate of the local fiscal impact on each type of political subdivision that would result from the proposed legislation. The deleted text begin commissioner of management and budgetdeleted text end new text begin officenew text end may require any political subdivision or the commissioner of an administrative agency of the state to supply in a timely manner any information determined to be necessary to determine local fiscal impact. The political subdivision, its representative association, or commissioner shall convey the requested information to the deleted text begin commissioner of management and budgetdeleted text end new text begin officenew text end with a signed statement to the effect that the information is accurate and complete to the best of its ability. The political subdivision, its representative association, or commissioner, when requested, shall update its determination of local fiscal impact based on actual cost or revenue figures, improved estimates, or both. Upon completion of the note, the deleted text begin commissionerdeleted text end new text begin officenew text end must provide a copy to the authors of the proposed legislation and to the chair and ranking minority member of each committee to which the proposed legislation is referred.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 8, 2019. new text end

Sec. 10.

Minnesota Statutes 2016, section 6.481, subdivision 3, is amended to read:

Subd. 3.

CPA firm audit.

A county audit performed by a CPA firm must meet the standards and be in deleted text begin thedeleted text end new text begin anew text end form deleted text begin required by the state auditordeleted text end new text begin meeting recognized industry auditing standardsnew text end . The state auditor may require additional information from the CPA firm if the state auditor determines that is in the public interest, but the state auditor must accept the audit unless the state auditor determines deleted text begin itdeleted text end new text begin the audit or its formnew text end does not meet recognized industry auditing standards deleted text begin or is not in the form required by the state auditordeleted text end . The state auditor may make additional examinations as the auditor determines to be in the public interest.

Sec. 11.

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 enterprisedeleted text end new text begin general new text end fund.

Sec. 12.

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 enterprisedeleted 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. 13.

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 funddeleted 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 funddeleted text end new text begin , by division, employed by the Office of the State Auditornew text end , any audit rate changes stated as a percentage, the number of audit reports issued, and the number of counties audited.

Sec. 14.

new text begin [6.92] LITIGATION EXPENSES; LEGISLATIVE REPORT. new text end

new text begin 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 July 1, 2017, and January 1, 2018, and each January 1 thereafter, on the state auditor's expenses in preparing or 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. 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 EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2016, section 15.0145, subdivision 5, is amended to read:

Subd. 5.

Executive director; staff.

(a) The Legislative Coordinating Commission must appoint an executive director for each council. The executive director must be experienced in administrative activities and familiar with the challenges and needs of the ethnic council's larger community. The executive director serves in the unclassified service at the pleasure of the Legislative Coordinating Commission.

(b) The Legislative Coordinating Commission must establish a process for recruiting and selecting applicants for the executive director positions. This process must include consultation and collaboration with the applicable council.

(c) The executive director and applicable council members must work together in fulfilling council duties. The executive director must consult with the commissioner of administration to ensure appropriate financial, purchasing, human resources, and other services for operation of the council.

(d) Once appointed, each council is responsible for supervising the work of its director. The council chair must report to the chair of the Legislative Coordinating Commission regarding the performance of the executive director, including any recommendations regarding disciplinary actions. The executive director must appoint and supervise the work of other staff necessary to carry out the duties of the council. The executive director must consult with the council chair prior to taking the following disciplinary actions with council staff: written reprimand, suspension, demotion, or discharge. The executive director and other council staff are executive branch employees.

(e) The executive director must submit the council's biennial budget request to the commissioner of management and budget as provided under chapter 16A.

new text begin (f) The Legislative Coordinating Commission may delegate its responsibilities under this section to a subcommittee or subgroup of the commission or the chair of the council. 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. 16.

new text begin [15.0395] INTERAGENCY AGREEMENTS AND INTRA-AGENCY TRANSFERS. new text end

new text begin (a) By October 15, 2018, and annually thereafter, the head of each agency must provide reports to the chairs and ranking minority members of the legislative committees with jurisdiction over the department or agency's budget on: new text end

new text begin (1) interagency agreements or service-level agreements and any renewals or extensions of existing interagency or service-level agreements with another agency if the cumulative value of those agreements is more than $100,000 in the previous fiscal year; and new text end

new text begin (2) transfers of appropriations between accounts within or between agencies, if the cumulative value of the transfers is more than $100,000 in the previous fiscal year. new text end

new text begin The report must include the statutory citation authorizing the agreement, transfer or dollar amount, purpose, and effective date of the agreement, the duration of the agreement, and a copy of the agreement. new text end

new text begin (b) As used in this section, "agency" includes the departments of the state listed in section 15.01, a multimember state agency in the executive branch described in section 15.012, paragraph (a), the Office of MN.IT Services, and the Office of Higher Education. new text end

Sec. 17.

Minnesota Statutes 2016, section 15A.083, subdivision 6a, is amended to read:

Subd. 6a.

Administrative law judge; salaries.

The salary of the chief administrative law judge is 98.52 percent of the salary of a new text begin chief new text end district court judge. The salaries of the assistant chief administrative law judge and administrative law judge supervisors are 93.60 percent of the salary of a new text begin chief new text end district court judge. The salary of an administrative law judge employed by the Office of Administrative Hearings is deleted text begin 88.67deleted text end new text begin 98.52new text end percent of the salary of a district court judge as set under section 15A.082, subdivision 3.

Sec. 18.

Minnesota Statutes 2016, section 15A.083, subdivision 7, is amended to read:

Subd. 7.

Workers' Compensation Court of Appeals and compensation judges.

Salaries of judges of the Workers' Compensation Court of Appeals are 98.52 percent of the salary for district court judges. The salary of the chief judge of the Workers' Compensation Court of Appeals is 98.52 percent of the salary for a chief district court judge. Salaries of compensation judges are deleted text begin 88.67deleted text end new text begin 98.52new text end percent of the salary of district court judges. deleted text begin The chief workers' compensation judge at the Department of Labor and Industry may be paid an annual salary that is up to five percent greater than the salary of workers' compensation settlement judges at the Department of Labor and Industry.deleted text end

Sec. 19.

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

new text begin (a) 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 must be paid from the appropriation to which the savings accrued; 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 (b) The program required by this section must be in addition to any existing monetary or nonmonetary performance-based recognition programs for state employees, including achievement awards, continuous improvement awards, and general employee recognitions. new text end

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 house of representatives and senate committees 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. 20.

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. 21.

Minnesota Statutes 2016, section 16B.2405, is amended to read:

16B.2405 CAPITOL BUILDING POWERS AND DUTIES.

new text begin Subdivision 1. new text end

new text begin Duties. new text end

The commissioner, upon receipt of funding for these purposes, shall:

(1) maintain and operate the Capitol building and grounds according to section 16B.24 and other applicable law;

(2) designate a project manager to oversee and manage predesign, design, and construction contracts and funding for all modifications to the Capitol building;

(3) manage design and construction projects and funding for the Capitol building according to section 16B.31 and other applicable law;

(4) lease space in the Capitol building, as provided in section 16B.24, to state agencies, constitutional officers, and the court administrator on behalf of the judicial branch and allocate space in the Capitol building to the legislative branch as determined by the commission;

(5) provide information about the Capitol building to the commission, legislative bodies, and others as needed regarding maintenance, operation, leasing, condition assessments, design, and construction projects; and

(6) assist the State Capitol Preservation Commission with performance of its duties as needed.

new text begin Subd. 2. new text end

new text begin Capitol event fees; appropriation. new text end

new text begin The commissioner may collect charges or fees from users holding events in the Capitol building. Money collected by the commissioner under this subdivision shall be deposited in a Capitol events dedicated account in the special revenue fund. Money in the dedicated account is appropriated to the commissioner of administration to recover direct costs incurred from holding events in the Capitol building. The commissioner shall report annually by August 1 on the events held in the Capitol building, the amounts collected for those events, and the costs for operating events, to the chairs and ranking minority members of the committees in the house of representatives and the senate with jurisdiction over finance and policy relating to the commissioner of administration. new text end

Sec. 22.

Minnesota Statutes 2016, section 16B.4805, subdivision 2, is amended to read:

Subd. 2.

Reimbursement for making reasonable accommodation.

The commissioner of administration shall reimburse state agencies for new text begin up to 50 percent of the cost of new text end expenses incurred in making reasonable accommodations eligible for reimbursement for agency employees and applicants for employment to the extent that funds are available in the accommodation account established under subdivision 3 for this purpose.

Sec. 23.

new text begin [16B.991] TERMINATION OF GRANT. new text end

new text begin Each grant agreement subject to sections 16B.97 and 16B.98 must provide that the agreement will immediately be terminated if the recipient is convicted of a criminal offense relating to a state grant agreement. new text end

Sec. 24.

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 annually 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. 25.

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 179Anew text begin or a compensation plan authorized under section 43A.18, subdivision 3anew 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 paydeleted 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 hoursnew text end .

(c) Severance pay for a highly compensated employee may exceed deleted text begin an amount equivalent to six months of paydeleted 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. 26.

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

new text begin (c) No later than January 15 of each year, the commissioner of management and budget must provide a report to the chairs and ranking minority members of the legislative committees with jurisdiction over state government finance on the number of employees choosing to opt-out of state employee group insurance coverage under this section. The report must provide itemized statistics, by agency, and include the total amount of savings accrued to each agency resulting from the opt-outs. new text end

Sec. 27.

new text begin [118A.09] ADDITIONAL LONG-TERM EQUITY INVESTMENT AUTHORITY. new text end

new text begin Subdivision 1. new text end

new text begin Definition; qualifying government. new text end

new text begin "Qualifying government" means: new text end

new text begin (1) a county or statutory or home rule charter city with a population of more than 100,000; new text end

new text begin (2) a county or statutory or home rule charter city which had its most recently issued general obligation bonds rated in the highest category by a national bond rating agency; or new text end

new text begin (3) a self-insurance pool listed in section 471.982, subdivision 3. new text end

new text begin A county or statutory or home rule charter city with a population of 100,000 or less that is a qualifying government, but is subsequently rated less than the highest category by a national bond rating agency on a general obligation bond issue, may not invest additional funds under this section but may continue to manage funds previously invested under subdivision 2. new text end

new text begin Subd. 2. new text end

new text begin Additional investment authority. new text end

new text begin Qualifying governments may invest the amount described in subdivision 3: new text end

new text begin (1) in index mutual funds based in the United States and indexed to a broad market United States equity index; or new text end

new text begin (2) with the Minnesota State Board of Investment subject to such terms and minimum amounts as may be adopted by the board. Index mutual fund investments must be made directly with the main sales office of the fund. new text end

new text begin Subd. 3. new text end

new text begin Funds. new text end

new text begin (a) Qualifying governments may only invest under subdivision 2 according to the limitations in this subdivision. A qualifying government under subdivision 1, clause (1) or (2), may only invest its funds that are held for long-term capital plans authorized by the city council or county board, or long-term obligations of the qualifying government. Long-term obligations of the qualifying government include long-term capital plan reserves, funds held to offset long-term environmental exposure, other postemployment benefit liabilities, compensated absences, and other long-term obligations established by applicable accounting standards. new text end

new text begin (b) Qualifying governments under subdivision 1, clause (1) or (2), may invest up to 15 percent of the sum of: new text end

new text begin (1) unassigned cash; new text end

new text begin (2) cash equivalents; new text end

new text begin (3) deposits; and new text end

new text begin (4) investments. new text end

new text begin This calculation must be based on the qualifying government's most recent audited statement of net position, which must be compliant and audited pursuant to governmental accounting and auditing standards. Once the amount invested reaches 15 percent of the sum of unassigned cash, cash equivalents, deposits, and investments, no further funds may be invested under this section; however, a qualifying government may continue to manage the funds previously invested under this section even if the total amount subsequently exceeds 15 percent of the sum of unassigned cash, cash equivalents, deposits, and investments. new text end

new text begin (c) A qualified government under subdivision 1, clause (3), may invest up to the lesser of: new text end

new text begin (1) 15 percent of the sum of its cash, cash equivalents, deposits, and investments; or new text end

new text begin (2) 25 percent of its net assets as reported on the pool's most recent audited statement of net position, which must be compliant and audited pursuant to governmental accounting and auditing standards. new text end

new text begin Subd. 4. new text end

new text begin Approval. new text end

new text begin Before investing pursuant to this section, the governing body of the qualifying government must adopt a resolution that includes the following statements: new text end

new text begin (1) the governing body understands that investments under subdivision 2 have a risk of loss; new text end

new text begin (2) the governing body understands the type of funds that are being invested and the specific investment itself; and new text end

new text begin (3) the governing body certifies that all funds designated for investment through the State Board of Investment meet the requirements of this section and the policies and procedures established by the State Board of Investment. new text end

new text begin Subd. 5. new text end

new text begin Public Employees Retirement Association to act as account administrator. new text end

new text begin A qualifying government exercising authority under this section to invest amounts with the State Board of Investment shall establish an account with the Public Employees Retirement Association (PERA), which shall act as the account administrator. new text end

new text begin Subd. 6. new text end

new text begin Purpose of account. new text end

new text begin The account established under subdivision 5 may only be used for the purposes provided under subdivision 3. PERA may rely on representations made by the qualifying government in exercising its duties as account administrator and has no duty to further verify qualifications, use, or intended use of the funds that are invested or withdrawn. new text end

new text begin Subd. 7. new text end

new text begin Account maintenance. new text end

new text begin (a) A qualifying government may establish an account to be held under the supervision of PERA for the purposes of investing funds with the State Board of Investment under subdivision 2. PERA shall establish a separate account for each qualifying government. PERA may charge participating qualifying governments a fee for reasonable administrative costs. The amount of any fee charged by PERA is annually appropriated to the association from the account. PERA may establish other reasonable terms and conditions for creation and maintenance of these accounts. new text end

new text begin (b) PERA must report to the qualifying government on the investment returns of invested funds and on all investment fees or costs incurred by the account. new text end

new text begin Subd. 8. new text end

new text begin Investment. new text end

new text begin (a) The assets of an account shall be invested and held as required by this subdivision. new text end

new text begin (b) PERA must certify all money in the accounts for which it is account administrator to the State Board of Investment for investment under section 11A.14, subject to the policies and procedures established by the State Board of Investment. Investment earnings must be credited to the account of the individual qualifying government. new text end

new text begin (c) For accounts invested by the State Board of Investment, the investment restrictions shall be the same as those generally applicable to the State Board of Investment. new text end

new text begin (d) A qualifying government may provide investment direction to PERA, subject to the policies and procedures established by the State Board of Investment. new text end

new text begin Subd. 9. new text end

new text begin Withdrawal of funds and termination of account. new text end

new text begin (a) A government may withdraw some or all of its money or terminate the account. new text end

new text begin (b) A government requesting withdrawal of money from an account created under this section must do so at a time and in the manner required by the executive director of PERA, subject to the policies and procedures established by the State Board of Investment. new text end

Sec. 28.

new text begin [134A.17] TRANSFERS TO COUNTY. new text end

new text begin If the Sherburne County law library, through its trustees, has a fiscal reserve that is projected to sustain its operations for a period of over five years, the Sherburne County law library may transfer up to half of the money in its fiscal reserve, but not to exceed $200,000, to Sherburne County to defray costs of constructing a new building to house the law library and courts. new text end

Sec. 29.

Minnesota Statutes 2016, section 138.081, is amended to read:

138.081 FEDERAL FUNDS, ACTS.

Subdivision 1.

deleted text begin Executive Councildeleted text end new text begin Department of Administrationnew text end as agency to accept federal funds.

The deleted text begin Executive Council of the Minnesota Historical Societydeleted text end new text begin Department of Administrationnew text end is hereby designated the state agency with power to accept any and all money provided for or made available to this state by the United States of America or any department or agency thereof for surveys, restoration, construction, equipping, or other purposes relating to the state historic sites program in accordance with the provisions of federal law and any rules or regulations promulgated thereunder and are further authorized to do any and all things required of this state by such federal law and the rules and regulations promulgated thereunder in order to obtain such federal money.

Subd. 2.

deleted text begin Director'sdeleted text end new text begin Commissioner'snew text end responsibilities.

The deleted text begin director of the Minnesota Historical Society, as state historic preservation officer,deleted text end new text begin commissionernew text end shall be responsible for the preparation, implementation and administration of the State Historic Preservation Plan and shall administer the State Historic Preservation Program authorized by the National Historic Preservation Act (United States Code, title 16, section 470 et seq. as amended). The deleted text begin director of the Minnesota Historical Societydeleted text end new text begin commissionernew text end shall review and approve in writing all grants-in-aid for architectural, archaeological and historic preservation made by state agencies and funded by the state or a combination of state and federal funds in accordance with the State Historic Preservation Program.

Subd. 3.

Administration of federal act.

The deleted text begin Minnesota Historical Societydeleted text end new text begin Department of Administrationnew text end is designated as the state agency to administer the provisions of the federal act providing for the preservation of historical and archaeological data, United States Code, title 16, sections 469 to 469C, insofar as the provisions of the act provide for implementation by the state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018. new text end

Sec. 30.

Minnesota Statutes 2016, section 138.665, subdivision 2, is amended to read:

Subd. 2.

Mediation.

The state, state departments, agencies, and political subdivisions, including the Board of Regents of the University of Minnesota, have a responsibility to protect the physical features and historic character of properties designated in sections 138.662 and 138.664 or listed on the National Register of Historic Places created by Public Law 89-665. Before carrying out any undertaking that will affect designated or listed properties, or funding or licensing an undertaking by other parties, the state department or agency shall consult with the deleted text begin Minnesota Historical Societydeleted text end new text begin State Historic Preservation Officenew text end pursuant to the society's established procedures to determine appropriate treatments and to seek ways to avoid and mitigate any adverse effects on designated or listed properties. If the state department or agency and the deleted text begin Minnesota Historical Societydeleted text end new text begin State Historic Preservation Officenew text end agree in writing on a suitable course of action, the project may proceed. If the parties cannot agree, any one of the parties may request that the governor appoint and convene a mediation task force consisting of five members, two appointed by the governor, the chair of the State Review Board of the State Historic Preservation Office, the commissioner of administration or the commissioner's designee, and one member who is not an employee of the Minnesota Historical Society appointed by the director of the society. The two appointees of the governor and the one of the director of the society shall be qualified by training or experience in one or more of the following disciplines: (1) history; (2) archaeology; and (3) architectural history. The mediation task force is not subject to the conditions of section 15.059. This subdivision does not apply to section 138.662, subdivision 24, and section 138.664, subdivisions 8 and 111.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018. new text end

Sec. 31.

Minnesota Statutes 2016, section 138.665, subdivision 3, is amended to read:

Subd. 3.

Notice to deleted text begin Minnesota Historical Societydeleted text end new text begin State Historic Preservation Officenew text end of land acquisition.

If the state or a governmental subdivision acquires any of the property in section 138.664, it is the duty of the officer in charge of the acquisition to notify in writing, as promptly as possible, the deleted text begin Minnesota Historical Societydeleted text end new text begin State Historic Preservation Officenew text end of the acquisition.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018. new text end

Sec. 32.

Minnesota Statutes 2016, section 138.69, is amended to read:

138.69 PUBLIC AREAS OF THE CAPITOL.

The Minnesota State Historical Society is designated the research agency and is responsible for the interpretation of the public areas for visitors to the Capitol. This involves conducting or approving public programs and tours in the Capitol and State Office Building, including exhibits held in the Capitol, providing informational services, acting as deleted text begin advisordeleted text end new text begin advisernew text end on preservation, recommending appropriate custodial policies, and maintaining and repairing all works of art.new text begin Notwithstanding section 138.668, the society may not charge a fee for general tours at the Capitol but may charge fees for special programs other than general tours.new text end

Sec. 33.

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 techniciandeleted 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 471.617deleted text end new text begin 13.02new text end , subdivision deleted text begin 1deleted text end new text begin 11new text end , deleted text begin shalldeleted text end new text begin mustnew 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 Minnesotadeleted text end new text begin boardnew 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 mustdeleted text begin , at all times during the term of the license, employdeleted text end new text begin appointnew text end a designated deleted text begin licenseddeleted text end school manager deleted text begin who maintains a cosmetology salon manager licensedeleted 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. 34.

Minnesota Statutes 2016, section 270.44, is amended to read:

270.44 CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.

The board shall charge the following fees:

(1) deleted text begin $105deleted text end new text begin $150new text end for a senior accredited Minnesota assessor license;

(2) deleted text begin $80deleted text end new text begin $125new text end for an accredited Minnesota assessor license;

(3) deleted text begin $65deleted text end new text begin $95new text end for a certified Minnesota assessor specialist license;

(4) deleted text begin $55deleted text end new text begin $85new text end for a certified Minnesota assessor license;

(5) deleted text begin $35deleted text end new text begin $85 for a temporary license;new text end

new text begin (6) $50 for a trainee registration; new text end

new text begin (7) $80new text end for grading a form appraisal;

deleted text begin (6) $60deleted text end new text begin (8) $140new text end for grading a narrative appraisal;

deleted text begin (7) $30deleted text end new text begin (9) $50new text end for deleted text begin adeleted text end reinstatement deleted text begin feedeleted text end ;new text begin andnew text end

deleted text begin (8) $25deleted text end new text begin (10) $20new text end for deleted text begin adeleted text end record retention deleted text begin fee; anddeleted text end

deleted text begin (9) $20 for an educational transcriptdeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with licenses issued after June 30, 2018. new text end

Sec. 35.

Minnesota Statutes 2016, section 270.45, is amended to read:

270.45 DISPOSITION OF FEES AND FINES.

All fees and fines so established and collected deleted text begin shalldeleted text end new text begin under section 270.44 must new text end be deleted text begin paid to the commissioner of management and budget for depositdeleted text end new text begin depositednew text end in deleted text begin the generaldeleted text end new text begin a dedicated account within the special revenuenew text end fund. deleted text begin The expenses of carryingdeleted text end new text begin Fees collected under this section are appropriated to the Department of Revenue to carrynew text end out the provisions of sections 270.41 to 270.50 deleted text begin shall be paid from appropriations made to the boarddeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017. new text end

Sec. 36.

new text begin [270.455] REFUNDS OF FEES. new text end

new text begin When the board determines that a fee or any part of a fee was erroneously paid to the board, the board may refund or credit the amount of fees that was paid in error. These refunds or credits shall be paid out of the dedicated account within the special revenue fund where the fees were originally deposited. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017. new text end

Sec. 37.

Minnesota Statutes 2016, section 290.0681, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have the meanings given.

(b) "Account" means the historic credit administration account in the special revenue fund.

(c) "Office" means the State Historic Preservation Office of the deleted text begin Minnesota Historical Societydeleted text end new text begin Department of Administrationnew text end .

(d) "Project" means rehabilitation of a certified historic structure, as defined in section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is allowed a federal credit.

(e) deleted text begin "Society" means the Minnesota Historical Society.deleted text end

deleted text begin (f)deleted text end "Federal credit" means the credit allowed under section 47(a)(2) of the Internal Revenue Code.

deleted text begin (g)deleted text end new text begin (f)new text end "Placed in service" has the meaning used in section 47 of the Internal Revenue Code.

deleted text begin (h)deleted text end new text begin (g) new text end "Qualified rehabilitation expenditures" has the meaning given in section 47 of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018. new text end

Sec. 38.

Minnesota Statutes 2016, section 290.0681, subdivision 2, is amended to read:

Subd. 2.

Credit or grant allowed; certified historic structure.

(a) A credit is allowed against the tax imposed under this chapter equal to not more than 100 percent of the credit allowed under section 47(a)(2) of the Internal Revenue Code for a project. To qualify for the credit:

(1) the project must receive Part 3 certification and be placed in service during the taxable year; and

(2) the taxpayer must be allowed the federal credit and be issued a credit certificate for the taxable year as provided in subdivision 4.

(b) The deleted text begin societydeleted text end new text begin commissioner of administrationnew text end may pay a grant in lieu of the credit. The grant equals 90 percent of the credit that would be allowed for the project.

(c) In lieu of the credit under paragraph (a), an insurance company may claim a credit against the insurance premiums tax imposed under chapter 297I.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018. new text end

Sec. 39.

Minnesota Statutes 2016, section 290.0681, subdivision 7, is amended to read:

Subd. 7.

Appropriations.

(a) An amount sufficient to pay the refunds authorized under this section is appropriated to the commissioner from the general fund.

(b) An amount sufficient to pay the grants authorized under this section is appropriated to the deleted text begin societydeleted text end new text begin commissioner of administrationnew text end from the general fund.

(c) Amounts in the account are appropriated to the deleted text begin societydeleted text end new text begin commissioner of administrationnew text end for costs associated with personnel and administrative expenses related to administering the credit for historic structure rehabilitation in this section, for refunding application fees under subdivision 3, and for costs associated with preparing the determination of economic impact report required in subdivision 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018. new text end

Sec. 40.

Minnesota Statutes 2016, section 290.0681, subdivision 9, is amended to read:

Subd. 9.

Report; determination of economic impact.

The deleted text begin societydeleted text end new text begin commissioner of administrationnew text end must annually determine the economic impact to the state from the rehabilitation of property for which credits or grants are provided under this section and provide a written report on the impact to the chairs and ranking minority members of the legislative committees on taxes of the senate and house of representatives, in compliance with sections 3.195 and 3.197.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018. new text end

Sec. 41.

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 anddeleted 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. 42.

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 includenew 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 systemdeleted 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 ; andnew 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. 43.

Minnesota Statutes 2016, section 352D.06, subdivision 1, is amended to read:

Subdivision 1.

Annuity; reserves.

new text begin (a) new text end When a participant attains at least age 55, terminates from covered service, and applies for a retirement annuity, the cash value of the participant's shares must be transferred to the general state employees retirement fund and deleted text begin mustdeleted text end be used to provide an annuity for the deleted text begin retired employeedeleted text end new text begin participant new text end based upon the participant's age when the benefit begins to accrue deleted text begin according to the reserve basis used by the general state employees retirement plan in determining pensions and reservesdeleted text end .

new text begin (b) Except for participants described in paragraph (c), the monthly amount of the annuity must be determined using the actuarial assumptions in effect for the general state employees retirement plan under section 356.215 on the accrual date. new text end

new text begin (c) For any participant who retires on or after July 1, 2017, and before July 1, 2020, when the participant is at least age 63 or has had at least 26 years of covered service, the monthly amount of the annuity must be determined using the actuarial assumptions in effect for the general state employees retirement plan under section 356.215 on June 30, 2016. new text end

new text begin Subd. 1a. new text end

new text begin Postretirement adjustments. new text end

The annuity under deleted text begin thisdeleted text end subdivision new text begin 1 new text end is eligible for postretirement adjustments under section 356.415.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017. new text end

Sec. 44.

Minnesota Statutes 2016, section 353.27, subdivision 3c, is amended to read:

Subd. 3c.

Former MERF members; member and employer contributions.

(a) For the period July 1, 2015, through December 31, 2031, the member contributions for former members of the Minneapolis Employees Retirement Fund and by the former Minneapolis Employees Retirement Fund-covered employing units are governed by this subdivision.

(b) The member contribution for a public employee who was a member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of the employee.

(c) The employer regular contribution with respect to a public employee who was a member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of the employee.

(d) deleted text begin For calendar years 2015 and 2016,deleted text end The new text begin annual new text end employer supplemental contribution is the employing unit's share of $31,000,000. For calendar years 2017 deleted text begin through 2031deleted text end new text begin and 2018new text end , the employer supplemental contribution is the employing unit's share of $21,000,000.

(e) Each employing unit's share under paragraph (d) is the amount determined from an allocation between each employing unit in the portion equal to the unit's employer supplemental contribution paid or payable under Minnesota Statutes 2012, section 353.50, during calendar year 2014.

(f) The employer supplemental contribution amount under paragraph (d) for calendar year 2015 must be invoiced by the executive director of the Public Employees Retirement Association by July 1, 2015. The calendar year 2015 payment is payable in a single amount on or before September 30, 2015. For subsequent calendar years, the employer supplemental contribution under paragraph (d) must be invoiced on January 31 of each year and is payable in two parts, with the first half payable on or before July 31 and with the second half payable on or before December 15. Late payments are payable with compound interest at the rate of 0.71 percent per month for each month or portion of a month that has elapsed after the due date.

(g) The employer supplemental contribution under paragraph (d) terminates on December 31, 2031.

Sec. 45.

Minnesota Statutes 2016, section 353.505, is amended to read:

353.505 STATE CONTRIBUTIONS; FORMER MERF DIVISION.

(a) On September 15, deleted text begin 2015, and September 15, 2016deleted text end new text begin 2019new text end ,new text begin and annually thereafter,new text end the state shall pay to the general employees retirement plan of the Public Employees Retirement Association, with respect to the former MERF division, $6,000,000. deleted text begin By September 15 of each year after 2016,deleted text end

new text begin (b) On September 15, 2017, and September 15, 2018,new text end the state shall pay to the general employees retirement plan of the Public Employees Retirement Association, with respect to the former MERF division, $16,000,000.

deleted text begin (b)deleted text end new text begin (c)new text end State contributions under this section end on September 15, 2031.

Sec. 46.

Minnesota Statutes 2016, section 471.193, subdivision 6, is amended to read:

Subd. 6.

Communication with state historic preservation officer.

Proposed site designations and design guidelines must be sent to the state historic preservation officer at the deleted text begin Minnesota Historical Societydeleted text end new text begin Department of Administrationnew text end , who shall review and comment on the proposal within 60 days. By October 31 of each year, each commission shall submit an annual report to the state historic preservation officer. The report must summarize the commission's activities, including designations, reviews, and other activities during the previous 12 months.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018. new text end

Sec. 47.

Minnesota Statutes 2016, section 508.12, subdivision 1, is amended to read:

Subdivision 1.

Examiner and deputy examiner.

The judges of the district court shall appoint a competent attorney in each county within their respective districts to be an examiner of titles and legal adviser to the registrar in said county, to which examiner all applications to register title to land are referred without further order, and may appoint attorneys to serve as deputy examiners who shall act in the name of the examiner and under the examiner's supervision and control, and the deputy's acts shall be the acts of the examiners. The examiner of titles and deputy examiners shall hold office subject to the will and discretion of the district court by whom appointed. The examiner's compensation and that of the examiner's deputies shall be fixed and determined by the court and paid in the same manner as the compensation of other county employees is paid except that in all counties having fewer than 75,000 inhabitants, and in Stearns, Dakota, Scott, Wright,new text begin Sherburne,new text end and Olmsted Counties the fees and compensation of the examiners for services as legal adviser to the registrar shall be determined by the judges of the district court and paid in the same manner as the compensation of other county employees is paid, but in every other instance shall be paid by the person applying to have the person's title registered or for other action or relief which requires the services, certification or approval of the examiner.

Sec. 48.

Minnesota Statutes 2016, section 518A.79, is amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Open meetings. new text end

new text begin Except as otherwise provided in this section, the task force is subject to chapter 13D. A meeting of the task force occurs when a quorum is present and the members receive information, discuss, or take action on any matter relating to the duties of the task force. The task force may conduct meetings as provided in section 13D.015 or 13D.02. The task force may conduct meetings at any location in the state that is appropriate for the purposes of the task force as long as the location is open and accessible to the public. For legislative members of the task force, enforcement of this subdivision is governed by section 3.055, subdivision 2. For nonlegislative members of the task force, enforcement of this subdivision is governed by section 13D.06, subdivisions 1 and 2. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018. new text end

Sec. 49.

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, 2017deleted text end new text begin February 1, 2018new text end . Any educational or training requirements developed by the board regarding eyelash technicians must be 14 hours.

Sec. 50.

Laws 2017, chapter 21, section 1, subdivision 2, is amended to read:

Subd. 2.

Exemption; legislature may waive.

(a) This section does not apply to contracts with a value of less than deleted text begin $1,000deleted text end new text begin $50,000new text end .

(b) The legislature may waive application of this section on a contract if the legislature determines that compliance is not practicable or in the best interests of the state.

Sec. 51.

Laws 2017, chapter 21, section 3, subdivision 2, is amended to read:

Subd. 2.

Exemption; commissioner may waive.

(a) This section does not apply to contracts with a value of less than deleted text begin $1,000deleted text end new text begin $50,000new text end .

(b) The commissioner may waive application of this section on a contract if the commissioner determines that compliance is not practicable or in the best interests of the state.

Sec. 52.

new text begin SMALL AGENCY ASSISTANCE PROGRAM; LEGISLATIVE AUDITOR REVIEW. new text end

new text begin No later than February 1, 2018, the legislative auditor is requested to conduct a program evaluation of the small agency assistance program authorized under Minnesota Statutes, section 16B.371. The program evaluation must be conducted according to the standards provided for a program evaluation in Minnesota Statutes, section 3.971, subdivision 7. new text end

Sec. 53.

new text begin HISTORIC PRESERVATION; LEGISLATIVE AUDITOR REVIEW. new text end

new text begin The legislative auditor is requested to conduct a program evaluation of the State Historic Preservation Office no later than January 1, 2018. The program evaluation must be consistent with the standards provided in Minnesota Statutes, section 3.971, subdivision 7, and include consideration of the office's consistency in its responsiveness to project proposals, and in its treatment of historic sites in the state, including those that are listed on the national register, those that are eligible for the national register, and those that are registered as state historic sites by the Minnesota Historical Society. The evaluation should also include a review of approaches to state historic preservation governance in other states, in comparison to Minnesota's governance structure, with emphasis on the impact of those approaches on the timeliness and consistency of preservation work in those states. new text end

Sec. 54.

new text begin HISTORIC PRESERVATION; TRANSFER. new text end

new text begin (a) The powers, duties, responsibilities, personnel, assets, and unexpended funds relating to functions assigned to the Minnesota State Historic Preservation Office are transferred to the Department of Administration effective March 1, 2018. For the purpose of this section, the Minnesota State Historical Society is considered a state agency under Minnesota Statutes, sections 15.039 and 16B.37. new text end

new text begin (b) The commissioner of the Department of Administration in consultation with the Minnesota Historical Society must transfer functions from the Minnesota Historical Preservation Office to the Department of Administration. The transfer must provide for the full transition of all State Historic Preservation Office functions to the Department of Administration. new text end

new text begin (c) A transferred employee's length of service remains uninterrupted as if the employee had been employed by the Department of Administration during the employee's time of employment by the Minnesota Historical Society. new text end

new text begin The employee shall have all accumulated unliquidated vacation and sick leave hours transferred to the employee's credit, up to the maximum accumulations permitted by the state collective bargaining agreement or compensation plan adopted under Minnesota Statutes, section 43A.18, governing the transferred position. Vacation and sick leave hours are not transferred if the transferred position does not provide for the leave. new text end

new text begin The salary rate of employees transferred under this section may not decrease as a result of the transfer to state employment. If an employee's salary rate is above the maximum of the class to which the transferred position is allocated, so long as the employee remains in the transferred position, the employee shall not be eligible to receive any increase in salary until the employee's salary is within the range of the class to which the transferred position is allocated, unless such increases are specifically provided in the state collective bargaining agreement or compensation plan governing the transferred position. new text end

new text begin All transferred employees must successfully complete a probationary period of at least one year beginning the effective date of the transfer in order to attain permanent status in the class to which the transferred position is allocated. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2018. new text end

Sec. 55.

new text begin OFFICE OF MN.IT SERVICES; IT OPTIMIZATION REPORT REQUIRED. new text end

new text begin The chief information officer shall report by December 31, 2018, on the progress of executive branch information technology optimization, including the status of data center consolidation, the status and plans for use of public cloud technology, and the status of state agency transition to enterprise information technology services. new text end

Sec. 56.

new text begin INITIAL TRANSIT FINANCIAL ACTIVITY REPORTING. new text end

new text begin (a) The first transit financial activity review and report submitted under Minnesota Statutes, section 3.972, subdivision 4, must include financial information from the period beginning on January 1, 2016, and through the end of the fiscal quarter immediately preceding the date of the report. new text end

new text begin (b) The legislative auditor must provide a copy of the review under paragraph (a) to each county that is party to the joint powers agreement under Minnesota Statutes, section 297A.992. 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. 57.

new text begin TRANSITION; STATE AUDITOR ENTERPRISE FUND. new text end

new text begin Notwithstanding any law to the contrary, receipts received by the state auditor for fiscal year 2018 and beyond, 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 close of fiscal year 2017 are transferred to the general fund. new text end

Sec. 58.

new text begin RETENTION OF FISCAL NOTE SYSTEM; LEGISLATIVE BUDGET OFFICE ACCESS. new text end

new text begin The Legislative Coordinating Commission must contract with the commissioner of management and budget to maintain and, as needed, upgrade the fiscal note tracking system funded under Laws 2013, chapter 142, article 1, section 13. The commissioner must provide the Legislative Budget Office established under this act with complete access to, and use of, the system. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 8, 2019. new text end

Sec. 59.

new text begin LEGISLATIVE BUDGET OFFICE TRANSITION PLANNING TASK FORCE. new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Legislative Budget Office Transition Planning Task Force is established. The task force consists of the following members: new text end

new text begin (1) two members of the house of representatives, one appointed by the speaker of the house, and one appointed by the minority leader of the house of representatives; new text end

new text begin (2) two members of the senate appointed by the senate Subcommittee on Committees of the Committee on Rules and Administration, one of whom must represent the majority caucus of the senate, and one of whom must represent the minority caucus of the senate; new text end

new text begin (3) the legislative auditor; new text end

new text begin (4) the commissioner of management and budget; and new text end

new text begin (5) the state budget director. new text end

new text begin The chief nonpartisan fiscal analyst of the house of representatives, the lead nonpartisan fiscal analyst of the senate, and two members from executive branch agencies, appointed by the commissioner of management and budget, shall serve as ex-officio, nonvoting members of the task force. Appointments required by this section must be made no later than July 15, 2017. The chair of the Legislative Coordinating Commission shall designate one member of the task force to serve as its chair. new text end

new text begin Subd. 2. new text end

new text begin Duties; report required. new text end

new text begin (a) The task force must develop a plan for the orderly transition of fiscal note and local impact note responsibilities from Minnesota Management and Budget to the Legislative Budget Office, as required by this act. At a minimum, the plan must consider the office's responsibilities for fiscal notes and local impact notes, the duties of state agencies and departments and local governments in facilitating the office's work, and any other issues relevant to the transition of duties to the office, as determined by the task force. The plan may include recommendations for additional legislation as necessary to implement the task force's transition plan, or to further clarify or structure the office's responsibilities. new text end

new text begin (b) The task force must submit a preliminary report no later than January 15, 2018, and a final report no later than December 1, 2018, to the chairs and ranking minority members of the house of representatives Ways and Means Committee and the senate Finance Committee. The final report must describe the task force's work, including recommendations for a transition plan and any recommendations for legislation developed under paragraph (a). new text end

new text begin Subd. 3. new text end

new text begin Staff. new text end

new text begin The Legislative Coordinating Commission must provide research and administrative assistance to support the work of the task force. new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin The task force expires upon submission of its final report to the legislature under subdivision 2. new text end

Sec. 60.

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. 61.

new text begin ICE PALACE ON CAPITOL GROUNDS AUTHORIZED. new text end

new text begin Subdivision 1. new text end

new text begin Use agreement; terms required. new text end

new text begin The commissioner of administration may enter a use agreement with the St. Paul Festival and Heritage Foundation for the construction, operation, and removal of an ice palace and related temporary structures on the grounds of the State Capitol complex. If a use agreement for this purpose is entered, the terms must include the following: new text end

new text begin (1) mutually agreed upon beginning and end dates for access to the grounds for construction, operation, and removal of the ice palace and related temporary structures; new text end

new text begin (2) notwithstanding Minnesota Rules, part 7525.0400, an allowance for the St. Paul Festival and Heritage Foundation to establish fees for admission to the ice palace and for participation in related activities, and for vendors to sell concessions subject to terms negotiated in the use agreement. Any fees established must allow a reasonable opportunity for all Minnesotans, regardless of income, to access the palace and participate in related activities, and must allow free or discounted admission to members of the military, military veterans, and their families. A fee may not be charged for general admission to the Capitol grounds or, to the extent practicable, for access to public memorials and monuments located on the Capitol grounds; new text end

new text begin (3) notwithstanding Minnesota Statutes, section 15B.28, and related rules of the Capitol Area Architectural and Planning Board, an allowance for the St. Paul Festival and Heritage Foundation to erect advertising devices promoting the ice palace and its sponsors and donors, subject to terms negotiated in the use agreement; new text end

new text begin (4) a restriction on private events that limit public access to the ice palace or surrounding Capitol grounds, without prior approval of the commissioner of administration; and new text end

new text begin (5) a requirement that, following removal of the ice palace and related temporary structures, the St. Paul Festival and Heritage Foundation restore the Capitol grounds to the same condition as existed prior to their construction. new text end

new text begin Subd. 2. new text end

new text begin Additional terms. new text end

new text begin In addition to the terms required by subdivision 1, a use agreement authorized by this section may include additional terms as necessary to preserve the integrity, dignity, and security of the State Capitol building, the Capitol grounds, and the surrounding public buildings, memorials, and monuments, and to ensure compliance with other applicable laws governing commercial activity on public property. new text end

new text begin Subd. 3. new text end

new text begin Costs, expenses, and liabilities. new text end

new text begin Unless expressly provided in the use agreement, any costs or expenses incurred by the state or the city of St. Paul in implementing a use agreement entered under this section must be paid or reimbursed by the St. Paul Festival and Heritage Foundation. Notwithstanding Minnesota Statutes, section 3.736, subdivision 1, and Minnesota Statutes, section 466.02, the state, the city of St. Paul, and their employees are not liable for losses incurred during the construction, operation, or removal of an ice palace or related temporary structures, or losses incurred by a person while visiting the ice palace or participating in related activities. 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. 62.

new text begin WAITE PARK; HOTEL INSPECTION. new text end

new text begin (a) Notwithstanding any other law to the contrary and in addition to any other requirement in law, the city of Waite Park may adopt an ordinance to require a hotel, motel, or lodging establishment operating within the city's jurisdiction to have a valid license issued by the city. The license may prohibit the licensee from: new text end

new text begin (1) knowingly allowing a room to be occupied for purposes of sex trafficking; new text end

new text begin (2) knowingly allowing a room to be occupied for the purposes of illegal drug activity; new text end

new text begin (3) knowingly allowing a room to be occupied by a minor for the consumption of alcoholic beverages; new text end

new text begin (4) prohibiting the inspection of the licensed premises; new text end

new text begin (5) failing to report observed or suspected illegal activity to the police in a reasonable period of time; and new text end

new text begin (6) failure to maintain the licensed premises to all building, fire, mechanical, zoning or licensing codes. new text end

new text begin The ordinance may provide for inspections related to the activities the license addresses. The city may collect a reasonable fee related to the cost of issuing the license and conducting inspections. new text end

new text begin (b) "Hotel," "motel," and "lodging establishment" are as defined in Minnesota Statutes, section 157.15. new text end

new text begin (c) The authority in this section does not replace or diminish the authority of the community health board to inspect and license any hotel, motel, or lodging establishment in the city. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without local approval, as provided in Minnesota Statutes, section 645.023, subdivision 1, paragraph (a). new text end

Sec. 63.

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. 64.

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. 65.

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 63. 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. 66.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2016, sections 6.581, subdivision 1; and 349A.08, subdivision 3, new text end new text begin are repealed. new text end

ARTICLE 3

CAMPAIGN FINANCE AND ELECTIONS

Section 1.

Minnesota Statutes 2016, section 10A.01, subdivision 12, is amended to read:

Subd. 12.

Depository.

"Depository" means a bank, savings association, or credit union organized under federal or state law and transacting business within this state.new text begin The depositories of a political committee or political fund include any depository in which the committee or fund has a savings, checking, or similar account, or purchases a money market certificate or certificate of deposit.new text end

Sec. 2.

Minnesota Statutes 2016, section 10A.01, subdivision 16, is amended to read:

Subd. 16.

Election cycle.

"Election cycle" means the period from January 1 following a general election for an office to December 31 following the next general election for that office, except that "election cycle" for a special election means the period from the date the special election writ is issued to deleted text begin 60deleted text end new text begin 15 new text end days after the special election is held. For a regular election, the period from January 1 of the year prior to an election year through December 31 of the election year is the "election segment" of the election cycle. Each other two-year segment of an election cycle is a "nonelection segment" of the election cycle. An election cycle that consists of two calendar years has only an election segment. The election segment of a special election cycle includes the entire special election cycle.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies to any special election cycle that starts on or after that date. new text end

Sec. 3.

Minnesota Statutes 2016, section 10A.025, subdivision 1a, is amended to read:

Subd. 1a.

Electronic filing.

new text begin (a) new text end A report or statement required to be filed under this chapter may be filed electronically. The board shall adopt rules to regulate electronic filing and to ensure that the electronic filing process is secure.

new text begin (b) A document filed by facsimile transmission or electronic filing system has the same force and effect as filing an original paper document. new text end

new text begin (c) In order to provide a secure environment for the submission of electronic files, the board must require that a filer use a personal identification code when submitting an electronic file. The board may also request the filer to provide a valid e-mail address in order to receive confirmation and verification messages from the board. new text end

new text begin (d) After an electronic file is processed by the board, the information contained in the electronic file becomes the property of the state subject to the terms of the Data Practices Act under chapter 13. new text end

new text begin (e) In the case of a filing by facsimile transmission, the filer must retain the original of the filed document and a record of the date and time of the transmission. If an electronic filing system is used to submit an electronic file to the board, the filer must retain as documentation the database and information on which the electronic submission of data is based. The database and records are subject to audit as provided in this chapter. new text end

new text begin (f) Within five days of a request by the board, any person filing a document by facsimile transmission or electronic filing system shall refile the document by one of the other filing methods provided in Minnesota Rules, part 4501.0500, subpart 1. new text end

new text begin (g) Technical problems that prevent the successful submission of a facsimile transmission or electronic file do not relieve the filer of the responsibility of meeting the requirements of this chapter. An audit trail that demonstrates that the facsimile transmission or electronic file was successfully submitted in a timely fashion may be used by the board to waive late filing fees. new text end

Sec. 4.

Minnesota Statutes 2016, section 10A.04, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Reporting by multiple lobbyists representing the same entity. new text end

new text begin Clauses (1) to (6) apply when a single individual, association, political subdivision, or public higher education system is represented by more than one lobbyist. new text end

new text begin (1) The entity must appoint one designated lobbyist to report lobbyist disbursements made by the entity. The designated lobbyist must indicate that status on the periodic reports of lobbyist disbursements. new text end

new text begin (2) A reporting lobbyist may consent to report on behalf of one or more other lobbyists for the same entity, in which case, the other lobbyists are persons whose activities the reporting lobbyist must disclose and are subject to the disclosure requirements of subdivision 3. Lobbyist disbursement reports filed by a reporting lobbyist must include the names and registration numbers of the other lobbyists whose activities are included in the report. new text end

new text begin (3) Lobbyists whose activities are accounted for by a reporting lobbyist are not required to file lobbyist disbursement reports. new text end

new text begin (4) A lobbyist whose lobbying disbursements are provided to the board through a reporting lobbyist must supply all relevant information on disbursements to the reporting lobbyist no later than five days before the prescribed filing date. new text end

new text begin (5) The reporting periods and due dates for a reporting lobbyist are those provided in subdivision 2. The late filing provisions in subdivision 5 apply to reports required by this subdivision. new text end

new text begin (6) The reporting lobbyist must indicate the names and registration numbers of any lobbyists who did not provide their lobbying disbursements for inclusion in a report. The late filing provisions in subdivision 5 apply to lobbyists who fail to report information to the reporting lobbyist. new text end

Sec. 5.

Minnesota Statutes 2016, section 10A.071, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Gift" means money, real or personal property, a service, a loan, a forbearance or forgiveness of indebtedness, or a promise of future employment, that is given and received without the giver receiving consideration of equal or greater value in return.

(c) "Official" means a public official, an employee of the legislature, or a local official of a metropolitan governmental unit.

new text begin (d) "Plaque" means a decorative item with an inscription recognizing an individual for an accomplishment. new text end

Sec. 6.

Minnesota Statutes 2016, section 10A.09, subdivision 5, is amended to read:

Subd. 5.

Form.

(a) A statement of economic interest required by this section must be on a form prescribed by the board. The individual filing must provide the following information:

(1) name, address, occupation, and principal place of business;

(2) the name of each associated business and the nature of that association;

(3) a listing of all real property within the state, excluding homestead property, in which the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as buyer or seller, or an option to buy, whether direct or indirect, if the interest is valued in excess of $2,500; or (ii) an option to buy, if the property has a fair market value of more than $50,000;

(4) a listing of all real property within the state in which a partnership of which the individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed as buyer or seller, or an option to buy, whether direct or indirect, if the individual's share of the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the property has a fair market value of more than $50,000. A listing under this clause or clause (3) must indicate the street address and the municipality or the section, township, range and approximate acreage, whichever applies, and the county in which the property is located;

(5) a listing of any investments, ownership, or interests in property connected with pari-mutuel horse racing in the United States and Canada, including a racehorse, in which the individual directly or indirectly holds a partial or full interest or an immediate family member holds a partial or full interest;

(6) a listing of the principal business or professional activity category of each business from which the individual receives more than $50 in any month as an employee, if the individual has an ownership interest of 25 percent or more in the business; deleted text begin anddeleted text end

(7) a listing of each principal business or professional activity category from which the individual received compensation of more than $2,500 in the past 12 months as an independent contractordeleted text begin .deleted text end new text begin ; andnew text end

new text begin (8) the full name of each security with a value of more than $2,500 owned in part or in full by the public official at any time during the reporting period. new text end

(b) The business or professional categories for purposes of paragraph (a), clauses (6) and (7), must be the general topic headings used by the federal Internal Revenue Service for purposes of reporting self-employment income on Schedule C. This paragraph does not require an individual to report any specific code number from that schedule. Any additional principal business or professional activity category may only be adopted if the category is enacted by law.

new text begin (c) For the purpose of an original statement of economic interest, "compensation in any month" includes only compensation received in the calendar month immediately preceding the date of appointment as a public official or filing as a candidate. new text end

new text begin (d) For the purpose of calculating the amount of compensation received from any single source in a single month, the amount shall include the total amount received from the source during the month, whether or not the amount covers compensation for more than one month. new text end

Sec. 7.

Minnesota Statutes 2016, section 10A.09, subdivision 6, is amended to read:

Subd. 6.

Annual statement.

new text begin (a) new text end Each individual who is required to file a statement of economic interest must also file an annual statement by the last Monday in January of each year that the individual remains in office. The annual statement must cover the period through December 31 of the year prior to the year when the statement is due. The annual statement must include the amount of each honorarium in excess of $50 received since the previous statement and the name and address of the source of the honorarium. The board must maintain each annual statement of economic interest submitted by an officeholder in the same file with the statement submitted as a candidate.

new text begin (b) For the purpose of annual statements of economic interest to be filed, "compensation in any month" includes compensation and honoraria received in any month between the end of the period covered in the preceding statement of economic interest and the end of the current period. new text end

new text begin (c) An individual must file the annual statement of economic interest required by this subdivision to cover the period for which the individual served as a public official even though at the time the statement was filed, the individual is no longer holding that office as a public official. new text end

Sec. 8.

Minnesota Statutes 2016, section 10A.15, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Contributions from Hennepin County registered associations. new text end

new text begin In lieu of registration with the board, an association registered with the Hennepin County filing officer under sections 383B.041 to 383B.058 that makes contributions of more than $200 to a committee or fund in a calendar year may notify the recipient committee of its registration with Hennepin County, including its registration number, and instruct the recipient committee to include the notice when the recipient committee discloses receipt of the contribution. new text end

Sec. 9.

new text begin [10A.155] VALUE OF CONTRIBUTIONS OF AUTOMOBILE USE. new text end

new text begin Automobile use provided to a committee by an individual may be valued at the lowest rate used by the state to reimburse its employees for automobile use. Alternatively, the value of the automobile may be calculated as the actual cost of fuel, maintenance, repairs, and insurance directly related to the use of the automobile. An automobile provided by an association must be valued at the fair market value for renting an equivalent automobile. new text end

Sec. 10.

Minnesota Statutes 2016, section 10A.20, subdivision 3, is amended to read:

Subd. 3.

Contents of report.

(a) The report required by this section must include each of the items listed in paragraphs (b) to deleted text begin (o)deleted text end new text begin (q) new text end that are applicable to the filer. The board shall prescribe forms based on filer type indicating which of those items must be included on the filer's report.

(b) The report must disclose the amount of liquid assets on hand at the beginning of the reporting period.

(c) The report must disclose the name, address, employer, or occupation if self-employed, and registration number if registered with the board, of each individual or association that has made one or more contributions to the reporting entity, including the purchase of tickets for a fund-raising effort, that in aggregate within the year exceed $200 for legislative or statewide candidates or more than $500 for ballot questions, together with the amount and date of each contribution, and the aggregate amount of contributions within the year from each source so disclosed. A donation in kind must be disclosed at its fair market value. An approved expenditure must be listed as a donation in kind. A donation in kind is considered consumed in the reporting period in which it is received. The names of contributors must be listed in alphabetical order. Contributions from the same contributor must be listed under the same name. When a contribution received from a contributor in a reporting period is added to previously reported unitemized contributions from the same contributor and the aggregate exceeds the disclosure threshold of this paragraph, the name, address, and employer, or occupation if self-employed, of the contributor must then be listed on the report.

(d) The report must disclose the sum of contributions to the reporting entity during the reporting period.

(e) The report must disclose each loan made or received by the reporting entity within the year in aggregate in excess of $200, continuously reported until repaid or forgiven, together with the name, address, occupation, principal place of business, if any, and registration number if registered with the board of the lender and any endorser and the date and amount of the loan. If a loan made to the principal campaign committee of a candidate is forgiven or is repaid by an entity other than that principal campaign committee, it must be reported as a contribution for the year in which the loan was made.

(f) The report must disclose each receipt over $200 during the reporting period not otherwise listed under paragraphs (c) to (e).

(g) The report must disclose the sum of all receipts of the reporting entity during the reporting period.

(h) The report must disclose the name, address, and registration number if registered with the board of each individual or association to whom aggregate expenditures, approved expenditures, independent expenditures, and ballot question expenditures have been made by or on behalf of the reporting entity within the year in excess of $200, together with the amount, date, and purpose of each expenditure and the name and address of, and office sought by, each candidate on whose behalf the expenditure was made, identification of the ballot question that the expenditure was intended to promote or defeat and an indication of whether the expenditure was to promote or to defeat the ballot question, and in the case of independent expenditures made in opposition to a candidate, the candidate's name, address, and office sought. A reporting entity making an expenditure on behalf of more than one candidate for state or legislative office must allocate the expenditure among the candidates on a reasonable cost basis and report the allocation for each candidate.

(i) The report must disclose the sum of all expenditures made by or on behalf of the reporting entity during the reporting period.

(j) The report must disclose the amount and nature of an advance of credit incurred by the reporting entity, continuously reported until paid or forgiven. If an advance of credit incurred by the principal campaign committee of a candidate is forgiven by the creditor or paid by an entity other than that principal campaign committee, it must be reported as a donation in kind for the year in which the advance of credit was made.

(k) The report must disclose the name, address, and registration number if registered with the board of each political committee, political fund, principal campaign committee, or party unit to which contributions have been made that aggregate in excess of $200 within the year and the amount and date of each contribution.

(l) The report must disclose the sum of all contributions made by the reporting entity during the reporting period.

(m) The report must disclose the name, address, and registration number if registered with the board of each individual or association to whom noncampaign disbursements have been made that aggregate in excess of $200 within the year by or on behalf of the reporting entity and the amount, date, and purpose of each noncampaign disbursement.

(n) The report must disclose the sum of all noncampaign disbursements made within the year by or on behalf of the reporting entity.

(o) The report must disclose the name and address of a nonprofit corporation that provides administrative assistance to a political committee or political fund as authorized by section 211B.15, subdivision 17, the type of administrative assistance provided, and the aggregate fair market value of each type of assistance provided to the political committee or political fund during the reporting period.

new text begin (p) Legislative, statewide, and judicial candidates, party units, and political committees and funds must itemize contributions that in aggregate within the year exceed $200 for legislative or statewide candidates or more than $500 for ballot questions on reports submitted to the board. The itemization must include the date on which the contribution was received, the individual or association that provided the contribution, and the address of the contributor. Additionally, the itemization for a donation in kind must provide a description of the item or service received. Contributions that are less than the itemization amount must be reported as an aggregate total. new text end

new text begin (q) Legislative, statewide, and judicial candidates, party units, political committees and funds, and committees to promote or defeat a ballot question must itemize expenditures and noncampaign disbursements that in aggregate exceed $200 in a calendar year on reports submitted to the board. The itemization must include the date on which the committee made or became obligated to make the expenditure or disbursement, the name and address of the vendor that provided the service or item purchased, and a description of the service or item purchased. Expenditures and noncampaign disbursements must be listed on the report alphabetically by vendor. new text end

Sec. 11.

Minnesota Statutes 2016, section 10A.25, subdivision 2, is amended to read:

Subd. 2.

Amounts.

(a) In a segment of an election cycle, the principal campaign committee of the candidate must not make campaign expenditures nor permit approved expenditures to be made on behalf of the candidate that result in aggregate expenditures in excess of the following:

(1) for governor and lieutenant governor, running together, $3,651,200 in the election segment and $1,564,800 in the nonelection segment;

(2) for attorney general, $626,000 in the election segment and $208,700 in the nonelection segment;

(3) for secretary of state and state auditor, separately, $417,300 in the election segment and $104,400 in the nonelection segment;

(4) for state senator, $94,700 in the election segment and $31,600 in a nonelection segment;

(5) for state representative, $63,100 in the election segment.

(b) In addition to the amount in paragraph (a), clause (1), a candidate for endorsement for the office of lieutenant governor at the convention of a political party may make campaign expenditures and approved expenditures of five percent of that amount to seek endorsement.

(c) If a special election cycle occurs during a general election cycle, expenditures by or on behalf of a candidate in the special election do not count as expenditures by or on behalf of the candidate in the general election.

(d) The expenditure limits in this subdivision for an office are increased by ten percent for a candidate who has not previously held the same office, whose name has not previously been on the primary or general election ballot for that office, and who has not in the past ten years raised or spent more than $750 in a run for any other office whose territory now includes a population that is more than one-third of the population in the territory of the new office. new text begin Candidates who qualify for first-time candidate status receive a ten percent increase in the campaign expenditure limit in all segments of the applicable election cycle. new text end In the case of a legislative candidate, the office is that of a member of the house of representatives or senate without regard to any specific district.

Sec. 12.

Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to read:

new text begin Subd. 16a. new text end

new text begin Return of contributions after merger of governor and lieutenant governor funds. new text end

new text begin Funds transferred to the joint committee for candidates for governor and lieutenant governor that result in aggregate contributions in excess of the applicable limits may be returned to the contributor within 90 days of the transfer of funds to the joint committee. new text end

Sec. 13.

Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to read:

new text begin Subd. 16b. new text end

new text begin Special election contribution limits. new text end

new text begin Election segment contribution limits set forth in this section apply to a special election cycle. new text end

Sec. 14.

Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to read:

new text begin Subd. 16c. new text end

new text begin Contribution limits apply independently. new text end

new text begin Contribution limits apply independently for election segments, nonelection segments, and special election cycles. new text end

Sec. 15.

Minnesota Statutes 2016, section 10A.31, is amended by adding a subdivision to read:

new text begin Subd. 7b. new text end

new text begin Failure to repay. new text end

new text begin A candidate who fails to repay money required by the agreement cannot be paid additional public subsidy funds during the current or future election cycles until the entirety of the unexpended funds and any associated collection fees are either repaid to the board or discharged by court action. new text end

Sec. 16.

Minnesota Statutes 2016, section 10A.323, is amended to read:

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.

new text begin (c) A candidate or the candidate's treasurer must be able to electronically file the affidavit required under this section in the same manner as other reports required by this chapter. The board must not require the candidate or candidate's treasurer to notarize the affidavit of contribution. new text end

Sec. 17.

new text begin [206.95] VOTING EQUIPMENT GRANT ACCOUNT. 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 account is established in the special revenue fund. Funds in the account are appropriated to the secretary of state to provide grants to political subdivisions as authorized by this section. Funds in the account are available until expended. new text end

new text begin Subd. 2. new text end

new text begin Authorized equipment. new text end

new text begin A political subdivision may apply to receive a grant under this section for the purchase or lease of the following: new text end

new text begin (1) an electronic voting system, or any individual components of an electronic voting system as provided in section 206.56, subdivision 8; new text end

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

new text begin (3) an electronic roster system meeting the technology requirements of section 201.225, subdivision 2; and new text end

new text begin (4) any other equipment or technology approved by the secretary of state for use in conducting a state or local election in Minnesota consistent with the requirements of law. new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) The secretary of state may make a grant from the account to a political subdivision only after receiving an application from the political subdivision. The application must contain the following information: new text end

new text begin (1) the date the application is submitted; new text end

new text begin (2) the name of the political subdivision; new text end

new text begin (3) the name and title of the individual who prepared the application; new text end

new text begin (4) the type of voting system currently used in each precinct in the political subdivision; new text end

new text begin (5) the date the system currently used was acquired and at what cost; new text end

new text begin (6) the total number of registered voters, as of the date of the application, in each precinct in the political subdivision; new text end

new text begin (7) the total amount of the grant requested; new text end

new text begin (8) the total amount and source of the political subdivision's money to be used to match a grant from the account; new text end

new text begin (9) the type of voting system to be acquired with the grant money and whether the voting system will permit individuals with disabilities to cast a secret ballot; new text end

new text begin (10) the proposed schedule for purchasing and implementing the new voting system and the precincts in which the new voting system would be used; new text end

new text begin (11) whether the political subdivision has previously applied for a grant from the account and the disposition of that application; new text end

new text begin (12) a certified statement by the political subdivision that the grant will be used only to purchase authorized equipment under subdivision 2 of this section and that the political subdivision has insufficient resources to purchase the voting system without obtaining a grant from the account; and new text end

new text begin (13) any other information required by the secretary of state. new text end

new text begin (b) The secretary of state must establish a deadline for receipt of grant applications, a procedure for awarding and distributing grants, and a process for verifying the proper use of the grants after distribution. new text end

new text begin Subd. 4. new text end

new text begin Amount of grant. new text end

new text begin A political subdivision is eligible to receive a grant of no more than 75 percent of the total cost of electronic roster equipment and 50 percent of the total cost of all other equipment or technology authorized for a grant under subdivision 2. In evaluating the application, the secretary of state shall consider only the information set forth in the application and is not subject to chapter 14. If the secretary of state determines that the application has been fully and properly completed, and that there is a sufficient balance in the account to fund the grant, either in whole or in part, the secretary of state may approve the application. 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 purchased. new text end

Sec. 18.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2016, section 204B.48, new text end new text begin is repealed. new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 4501.0300, subpart 3; 4501.0500, subpart 2; 4503.0200, subpart 6; 4503.0300, subpart 4; 4503.0400, subpart 1; 4503.0500, subparts 5 and 8; 4503.0700, subparts 2 and 3; 4503.1300, subpart 5; 4503.1400, subparts 8 and 9; 4503.1450, subparts 1 and 3; 4503.1600; 4503.1700; 4503.1800; 4505.0100, subpart 3; 4505.0900, subparts 2, 3, 4, 5, 6, and 7; 4511.0500, subpart 2; 4512.0100, subparts 2, 4, and 5; and 4525.0210, subpart 1, new text end new text begin are repealed. new text end

ARTICLE 4

MILITARY AFFAIRS AND VETERANS AFFAIRS

Section 1.

Minnesota Statutes 2016, section 190.19, subdivision 2, is amended to read:

Subd. 2.

Uses.

(a) Money appropriated from the Minnesota "Support Our Troops" account to the Department of Military Affairs may be used for:

(1) grants directly to eligible individuals;

(2) grants to one or more eligible foundations for the purpose of making grants to eligible individuals, as provided in this section;

(3) veterans' services; or

(4) grants to family readiness groups chartered by the adjutant general.

(b) As used in paragraph (a), the term "eligible individual" includes any person who is:

(1) a member new text begin in good standing new text end of the Minnesota National Guard or a reserve unit based in Minnesota deleted text begin who has been called to active service as defined in section 190.05, subdivision 5deleted text end ;

(2) a Minnesota resident who is a member of a military reserve unit not based in Minnesota, if the member is called to active service as defined in section 190.05, subdivision 5;

(3) any other Minnesota resident performing active service for any branch of the military of the United States;

(4) a person who new text begin honorably new text end served in one of the capacities listed in clause (1), (2), or (3) who has current financial needs deleted text begin directly related to that servicedeleted text end ; and

(5) a member of the immediate family of an individual identified in clause (1), (2), (3), or (4). For purposes of this clause, "immediate family" means the individual's spouse and minor children and, if they are dependents of the member of the military, the member's parents, grandparents, siblings, stepchildren, and adult children.

(c) As used in paragraph (a), the term "eligible foundation" includes any organization that:

(1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code;

(2) has articles of incorporation under chapter 317A specifying the purpose of the organization as including the provision of financial assistance to members of the Minnesota National Guard and other United States armed forces reserves and their families and survivors; and

(3) agrees in writing to distribute any grant money received from the adjutant general under this section to eligible individuals as defined in this section and in accordance with any written policies and rules the adjutant general may impose as conditions of the grant to the foundation.

(d) The maximum grant awarded to an eligible individual under paragraph (a) in a calendar year with funds from the Minnesota "Support Our Troops" account, either through an eligible institution or directly from the adjutant general, may not exceed deleted text begin $2,000deleted text end new text begin $4,000new text end .

Sec. 2.

Minnesota Statutes 2016, section 190.19, subdivision 2a, is amended to read:

Subd. 2a.

Uses; veterans.

(a) Money appropriated to the Department of Veterans Affairs from the Minnesota "Support Our Troops" account may be used for:

(1) grants to veterans service organizations;

(2) outreach to underserved veterans;

(3) providing services and programs for veterans and their families;

(4) transfers to the vehicle services account for Gold Star license plates under section 168.1253;

(5) grants of up to $100,000 to any organization approved by the commissioner of veterans affairs for the purpose of supporting and improving the lives of veterans and their families; deleted text begin anddeleted text end

(6) grants to an eligible foundationdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (7) the agency's uncompensated burial costs for eligible dependents to whom the commissioner grants a no-fee or reduced-fee burial in the state's veteran cemeteries pursuant to section 197.236, subdivision 9, paragraph (b). new text end

(b) For purposes of this subdivision, "eligible foundation" includes any organization that:

(1) is a tax-exempt organization under section 501(c) of the Internal Revenue Code; and

(2) is a nonprofit corporation under chapter 317A and the organization's articles of incorporation specify that a purpose of the organization includes: (i) providing assistance to veterans and their families; or (ii) enhancing the lives of veterans and their families.

Sec. 3.

Minnesota Statutes 2016, section 196.05, subdivision 1, is amended to read:

Subdivision 1.

General duties.

The commissioner shall:

(1) act as the agent of a resident of the state having a claim against the United States for benefits arising out of or by reason of service in the armed forces and prosecute the claim without charge;

(2) act as custodian of veterans' bonus records;

(3) administer the laws relating to the providing of bronze flag holders at veterans' graves for memorial purposes;

(4) administer the laws relating to recreational or rest camps for veterans so far as applicable to state agencies;

(5) administer the state soldiers' assistance fund and veterans' relief fund and other funds appropriated for the payment of bonuses or other benefits to veterans or for the rehabilitation of veterans;

(6) cooperate with national, state, county, municipal, and private social agencies in securing to veterans and their dependents the benefits provided by national, state, and county laws, municipal ordinances, or public and private social agencies;

(7) provide necessary assistance where other adequate aid is not available to the dependent family of a veteran while the veteran is hospitalized and after the veteran is released for as long a period as is necessary as determined by the commissioner;

(8) cooperate with United States governmental agencies providing compensation, pensions, insurance, or other benefits provided by federal law, by supplementing the benefits prescribed therein, when conditions in an individual case make it necessary;

(9) assist dependent family members of military personnel who are called from reserve status to extended federal active duty during a time of war or national emergency through the state soldiers' assistance fund provided by section 197.03;

(10) exercise other powers as may be authorized and necessary to carry out the provisions of this chapter and chapter 197, consistent with that chapter; deleted text begin anddeleted text end

(11) provide information, referral, and counseling services to those veterans who may have suffered adverse health conditions as a result of possible exposure to chemical agentsdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (12) in coordination with the Minnesota Association of County Veterans Service Officers, develop a written disclosure statement for use by private providers of veterans benefits services as required under section 197.6091. At a minimum, the written disclosure statement shall include a signature line, contact information for the department, and a statement that veterans benefits services are offered at no cost by federally chartered veterans service organizations and by county veterans service officers. new text end

Sec. 4.

Minnesota Statutes 2016, section 197.236, subdivision 9, is amended to read:

Subd. 9.

Burial fees.

new text begin (a) new text end The commissioner of veterans affairs shall establish a fee schedule, which may be adjusted from time to time, for the interment of eligible spouses and dependent children. The fees shall cover as nearly as practicable the actual costs of interment, excluding the value of the plot.

new text begin (b) Upon application,new text end the commissioner may waive new text begin or reduce new text end the new text begin burial new text end fee deleted text begin in the case ofdeleted text end new text begin fornew text end an indigent eligible person.new text begin The commissioner shall develop a policy, eligibility standards, and application form for requests to waive or reduce the burial fee to indigent eligible applicants.new text end

new text begin (c) new text end No plot or interment fees may be charged for the burial of service members who die on active duty or eligible veterans, as defined in United States Code, title 38, section 101, paragraph (2).

Sec. 5.

new text begin [197.6091] VETERANS BENEFITS SERVICES; DISCLOSURE REQUIREMENTS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b)(1) "Advertising" or "advertisement" means any of the following: new text end

new text begin (i) any written or printed communication made for the purpose of soliciting business for veterans benefits appeal services, including but not limited to a brochure, letter, pamphlet, newspaper, telephone listing, periodical, or other writing; new text end

new text begin (ii) any directory listing caused or permitted by a person and made available by that person indicating that veterans benefits appeal services are being offered; or new text end

new text begin (iii) any radio, television, computer network, or similar airwave or electronic transmission that solicits business for or promotes a person offering veterans benefits appeal services. new text end

new text begin (2) "Advertising" or "advertisement" does not include any of the following: new text end

new text begin (i) any printing or writing used on buildings, uniforms, or badges, where the purpose of the writing is for identification; or new text end

new text begin (ii) any printing or writing in a memorandum or other communication used in the ordinary course of business where the sole purpose of the writing is other than soliciting business for veterans benefits appeal services. new text end

new text begin (c) "Veterans benefits appeal services" means services that a veteran might reasonably require in order to appeal a denial of federal or state veterans benefits, including but not limited to denials of disability, limited income, home loan, insurance, education and training, burial and memorial, and dependent and survivor benefits. new text end

new text begin (d) "Veterans benefits services" means services that a veteran or a family member of a veteran might reasonably use in order to obtain federal, state, or county veterans benefits. new text end

new text begin (e) "Written disclosure statement" means the written disclosure statement developed by the commissioner of veterans affairs pursuant to section 196.05, subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Advertising disclosure requirements. new text end

new text begin A person advertising veterans benefits appeal services must conspicuously disclose in the advertisement, in similar type size or voice-over, that veterans benefits appeal services are also offered at no cost by county veterans service officers under sections 197.603 and 197.604. new text end

new text begin Subd. 3. new text end

new text begin Veterans benefits services disclosure requirements. new text end

new text begin A person who provides veterans benefits services in exchange for compensation shall provide a written disclosure statement to each client or prospective client. Before a person enters into an agreement to provide veterans benefits services or accepts money or any other thing of value for the provision of veterans benefits services, the person must obtain the signature of the client on a written disclosure statement containing an attestation by the client that the client has read and understands the written disclosure statement. new text end

new text begin Subd. 4. new text end

new text begin Violations; penalties. new text end

new text begin A person who fails to comply with this section is subject to a civil penalty not to exceed $1,000 for each violation. Civil penalties shall be assessed by the district court in an action initiated by the attorney general. For the purposes of computing the amount of each civil penalty, each day of a continuing violation constitutes a separate violation. Additionally, the attorney general may accept a civil penalty as determined by the attorney general in settlement of an investigation of a violation of this section regardless of whether an action has been filed under this section. Any civil penalty recovered shall be deposited in the Support Our Troops account established under section 190.19. new text end

new text begin Subd. 5. new text end

new text begin Nonapplicability. new text end

new text begin This section does not apply to the owner or personnel of any medium in which an advertisement appears or through which an advertisement is disseminated. new text end

Sec. 6.

Minnesota Statutes 2016, section 197.791, subdivision 2, is amended to read:

Subd. 2.

Program established.

The Minnesota GI Bill program is established to provide postsecondary educational assistancenew text begin , apprenticeship and on-the-job training benefits, and other professional and educational benefitsnew text end to eligible Minnesota veterans and to the children and spouses of deceased and severely disabled Minnesota veterans.

The commissioner, in cooperation with eligible postsecondary educational institutions, shall administer the program for the purpose of providing postsecondary educational assistance to eligible persons in accordance with this section. Each public postsecondary educational institution in the state must participate in the program and each private postsecondary educational institution in the state is encouraged to participate in the program. Any participating private institution may suspend or terminate its participation in the program at the end of any semester or other academic term.

Sec. 7.

Minnesota Statutes 2016, section 197.791, subdivision 3, is amended to read:

Subd. 3.

Duties; responsibilities.

(a) The commissioner shall establish policies and procedures including, but not limited to, procedures for student application record keeping, information sharing, payment of educational assistance benefitsnew text begin under subdivision 5, payment of apprenticeship or on-the-job training benefits under subdivision 5a, payment of other educational or professional benefits under subdivision 5new text end , and other procedures the commissioner considers appropriate and necessary for effective and efficient administration of the program established in this section.

(b) The commissioner may delegate part or all of the administrative procedures for the program to responsible representatives of participating eligible institutions. The commissioner may execute an interagency agreement with the Minnesota Office of Higher Education for services the commissioner determines necessary to administer the program.

Sec. 8.

Minnesota Statutes 2016, section 197.791, subdivision 4, is amended to read:

Subd. 4.

Eligibility.

(a) A person is eligible for educational assistance under deleted text begin this sectiondeleted text end new text begin subdivisions 5 and 5anew text end if:

(1) the person is:

(i) a veteran who is serving or has served honorably in any branch or unit of the United States armed forces at any time;

(ii) a nonveteran who has served honorably for a total of five years or more cumulatively as a member of the Minnesota National Guard or any other active or reserve component of the United States armed forces, and any part of that service occurred on or after September 11, 2001;

(iii) the surviving spouse or child of a person who has served in the military and who has died as a direct result of that military service, only if the surviving spouse or child is eligible to receive federal education benefits under United States Code, title 38, chapter 33, as amended, or United States Code, title 38, chapter 35, as amended; or

(iv) the spouse or child of a person who has served in the military at any time and who has a total and permanent service-connected disability as rated by the United States Veterans Administration, only if the spouse or child is eligible to receive federal education benefits under United States Code, title 38, chapter 33, as amended, or United States Code, title 38, chapter 35, as amended; and

(2) the person receiving the educational assistance is a Minnesota resident, as defined in section 136A.101, subdivision 8; and

(3) the person receiving the educational assistance:

(i) is an undergraduate or graduate student at an eligible institution;

(ii) is maintaining satisfactory academic progress as defined by the institution for students participating in federal Title IV programs;

(iii) is enrolled in an education program leading to a certificate, diploma, or degree at an eligible institution;

(iv) has applied for educational assistance under this section prior to the end of the academic term for which the assistance is being requested;

(v) is in compliance with child support payment requirements under section 136A.121, subdivision 2, clause (5); and

(vi) has completed the Free Application for Federal Student Aid (FAFSA).

(b) A person's eligibility terminates when the person becomes eligible for benefits under section 135A.52.

(c) To determine eligibility, the commissioner may require official documentation, including the person's federal form DD-214 or other official military discharge papers; correspondence from the United States Veterans Administration; birth certificate; marriage certificate; proof of enrollment at an eligible institution; signed affidavits; proof of residency; proof of identity; or any other official documentation the commissioner considers necessary to determine eligibility.

(d) The commissioner may deny eligibility or terminate benefits under this section to any person who has not provided sufficient documentation to determine eligibility for the program. An applicant may appeal the commissioner's eligibility determination or termination of benefits in writing to the commissioner at any time. The commissioner must rule on any application or appeal within 30 days of receipt of all documentation that the commissioner requires. The decision of the commissioner regarding an appeal is final. However, an applicant whose appeal of an eligibility determination has been rejected by the commissioner may submit an additional appeal of that determination in writing to the commissioner at any time that the applicant is able to provide substantively significant additional information regarding the applicant's eligibility for the program. An approval of an applicant's eligibility by the commissioner following an appeal by the applicant is not retroactively effective for more than one year or the semester of the person's original application, whichever is later.

(e) Upon receiving an application with insufficient documentation to determine eligibility, the commissioner must notify the applicant within 30 days of receipt of the application that the application is being suspended pending receipt by the commissioner of sufficient documentation from the applicant to determine eligibility.

Sec. 9.

Minnesota Statutes 2016, section 197.791, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Benefitdeleted text end new text begin Educational assistancenew text end amount.

(a) On approval by the commissioner of eligibility for the program, the applicant shall be awarded, on a funds-available basis, the educational assistance under the program for use at any time according to program rules at any eligible institution.

(b) The amount of educational assistance in any semester or term for an eligible person must be determined by subtracting from the eligible person's cost of attendance the amount the person received or was eligible to receive in that semester or term from:

(1) the federal Pell Grant;

(2) the state grant program under section 136A.121; and

(3) any federal military or veterans educational benefits including but not limited to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, vocational rehabilitation benefits, and any other federal benefits associated with the person's status as a veteran, except veterans disability payments from the United States Veterans Administration and payments made under the Veterans Retraining Assistance Program (VRAP).

(c) The amount of educational assistance for any eligible person who is a full-time student must not exceed the following:

deleted text begin (1) $1,000 per semester or term of enrollment; deleted text end

deleted text begin (2)deleted text end new text begin (1)new text end $3,000 per state fiscal year; and

deleted text begin (3)deleted text end new text begin (2)new text end $10,000 in a lifetime.

new text begin (d) A person eligible under this subdivision may use the benefit amounts for the following purposes: new text end

new text begin (1) licensing or certification tests, the successful completion of which demonstrates an individual's possession of the knowledge or skill required to enter into, maintain, or advance in employment in a predetermined and identified vocation or profession, provided that the tests and the licensing or credentialing organizations or entities that offer the tests are approved by the commissioner; new text end

new text begin (2) tests for admission to institutions of higher learning or graduate schools; new text end

new text begin (3) national tests providing an opportunity for course credit at institutions of higher learning; new text end

new text begin (4) a preparatory course for a test that is required or used for admission to an institution of higher education or a graduate program; and new text end

new text begin (5) any fee associated with the pursuit of a professional or educational objective specified in clauses (1) to (4). new text end

new text begin (e) If an eligible person receives benefits under subdivision 5, the eligible person's aggregate benefits under this subdivision and subdivision 5 must not exceed $10,000 in the eligible person's lifetime. new text end

new text begin (f) If an eligible person receives benefits under subdivision 5a, the eligible person's aggregate benefits under this subdivision and subdivision 5a must not exceed $10,000 in the eligible person's lifetime. new text end

For a part-time student, the amount of educational assistance must not exceed $500 per semester or term of enrollment. For the purpose of this paragraph, a part-time undergraduate student is a student taking fewer than 12 credits or the equivalent for a semester or term of enrollment and a part-time graduate student is a student considered part time by the eligible institution the graduate student is attending. The minimum award for undergraduate and graduate students is $50 per term.

Sec. 10.

Minnesota Statutes 2016, section 197.791, subdivision 5a, is amended to read:

Subd. 5a.

Apprenticeship and on-the-job training.

(a) The commissioner, in consultation with the commissioners of employment and economic development and labor and industry, shall develop and implement an apprenticeship and on-the-job training program to administer a portion of the Minnesota GI Bill program to pay benefit amounts to eligible deleted text begin applicantsdeleted text end new text begin personsnew text end , as provided in this subdivision.

(b) An "eligible employer" means an employer operating a qualifying apprenticeship or on-the-job training program that has been approved by the commissioner.

(c) A person is eligible for apprenticeship and on-the-job training assistance under this subdivision if the person meets the criteria established under subdivision 4, deleted text begin paragraphsdeleted text end new text begin paragraphnew text end (a)deleted text begin , clause (1), and (c) to (e)deleted text end . new text begin The commissioner may determine eligibility as provided in subdivision 4, paragraph (c), and may deny or terminate benefits as prescribed under subdivision 4, paragraphs (d) and (e). new text end The amount of assistance paid to or on behalf of an eligible individual under this subdivision must not exceed the following:

(1) deleted text begin $2,000deleted text end new text begin $3,000new text end per fiscal year for apprenticeship expenses;

(2) deleted text begin $2,000deleted text end new text begin $3,000new text end per fiscal year for on-the-job training;

(3) $1,000 for a job placement credit payable to an eligible employer upon hiring new text begin and completion of six consecutive months' employment of new text end a person receiving assistance under this subdivision; and

(4) $1,000 for a job placement credit payable to an eligible employer after a person receiving assistance under this subdivision has been employed by the eligible employer for at least 12 consecutive months as a full-time employee.

No more than deleted text begin $3,000deleted text end new text begin $5,000new text end in aggregate benefits under this paragraph may be paid to or on behalf of an individual in one fiscal year, and not more than deleted text begin $9,000deleted text end new text begin $10,000new text end in aggregate benefits under this paragraph may be paid to or on behalf of an individual over any period of time.

(d) Assistance for apprenticeship expenses and on-the-job training is available for qualifying programs, which must, at a minimum, meet the following criteria:

(1) the training must be with an eligible employer;

(2) the training must be documented and reported;

(3) the training must reasonably be expected to lead to an entry-level position; and

(4) the position must require at least six months of training to become fully trained.

ARTICLE 5

LIQUOR

Section 1.

Minnesota Statutes 2016, section 85.0505, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Fort Ridgely State Park. new text end

new text begin The commissioner of public safety, with the approval of the commissioner of natural resources, may issue to a concessionaire, lessee, or person holding a contract with the Department of Natural Resources an on-sale license for the sale of intoxicating liquor at the Fort Ridgely State Park golf course. The annual fee for the license issued pursuant to this subdivision shall be set by the commissioner of public safety at an amount comparable to the fee charged by the surrounding counties for a similar license. All provisions of chapter 340A not inconsistent with this subdivision shall apply to the sale of intoxicating liquor at the Fort Ridgely State Park golf course. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2016, section 340A.22, subdivision 1, is amended to read:

Subdivision 1.

Activities.

(a) A microdistillery licensed under this chapter may provide on its premises samples of distilled spirits manufactured on its premises, in an amount not to exceed 15 milliliters per variety per person. No more than 45 milliliters may be sampled under this paragraph by any person on any day.

(b) A microdistillery can sell cocktails to the public, pursuant to subdivision 2.

new text begin (c) A microdistillery may not operate a cocktail room under subdivision 2 or conduct sales at off-sale under subdivision 4 unless at least 50 percent of the annual production of the licensee is processed and distilled on premises. new text end

new text begin (d) Distilled spirits produced or in production prior to July 1, 2017, are not counted as part of the calculations under paragraph (c). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017. new text end

Sec. 3.

Minnesota Statutes 2016, section 340A.22, subdivision 2, is amended to read:

Subd. 2.

Cocktail room license.

(a) A municipality, including a city with a municipal liquor store, may issue the holder of a microdistillery license under this chapter a microdistillery cocktail room license. A microdistillery cocktail room license authorizes on-sale of distilled liquor produced by the distiller for consumption on the premises of or adjacent to one distillery location owned by the distiller. new text begin Notwithstanding section 340A.504, subdivision 3, a cocktail room may be open and may conduct on-sale business on Sundays if authorized by the municipality. new text end Nothing in this subdivision precludes the holder of a microdistillery cocktail room license from also holding a license to operate a restaurant at the distillery. Section 340A.409 shall apply to a license issued under this subdivision. All provisions of this chapter that apply to a retail liquor license shall apply to a license issued under this subdivision unless the provision is explicitly inconsistent with this subdivision.

(b) A distiller may only have one cocktail room license under this subdivision, and may not have an ownership interest in a distillery licensed under section 340A.301, subdivision 6, clause (a).

(c) The municipality shall impose a licensing fee on a distiller holding a microdistillery cocktail room license under this subdivision, subject to limitations applicable to license fees under section 340A.408, subdivision 2, paragraph (a).

(d) A municipality shall, within ten days of the issuance of a license under this subdivision, inform the commissioner of the licensee's name and address and trade name, and the effective date and expiration date of the license. The municipality shall also inform the commissioner of a license transfer, cancellation, suspension, or revocation during the license period.

(e) No single entity may hold both a cocktail room and taproom license, and a cocktail room and taproom may not be colocated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017. new text end

Sec. 4.

Minnesota Statutes 2016, section 340A.24, subdivision 3, is amended to read:

Subd. 3.

Total retail sales.

A brew pub's total retail sales at on- or off-sale under this section may not exceed 3,500 barrels per year, provided that off-sales may not total more than deleted text begin 500deleted text end new text begin 750 new text end barrels.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2016, section 340A.28, subdivision 1, is amended to read:

Subdivision 1.

License; limitations.

A brewer licensed under section 340A.301, subdivision 6, clause (c), (i), or (j), may be issued a license by a municipality for off-sale of malt liquor at its licensed premises that has been produced and packaged by the brewer. The license must be approved by the commissioner. A brewer may only have one license under this subdivision. The amount of malt liquor sold at off-sale may not exceed deleted text begin 500deleted text end new text begin 750 new text end barrels annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt liquor sold off-sale must be removed from the premises before the applicable off-sale closing time at exclusive liquor stores, except that malt liquor in growlers only may be sold at off-sale on Sundays. Sunday sales must be approved by the licensing jurisdiction and hours may be established by those jurisdictions. Packaging of malt liquor for off-sale under this subdivision must comply with section 340A.285.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 340A.301, is amended by adding a subdivision to read:

new text begin Subd. 12. new text end

new text begin 3.2 percent malt liquor; label. new text end

new text begin 3.2 percent malt liquor, as defined under section 340A.101, subdivision 19, may be sold with a label that states "MAX 3.2% ALC/WT" or equivalent, on the side of the can or bottle, and does not require a similar disclosure on the can top or bottom. The commissioner shall establish standards to implement this requirement. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies to all cans or bottles sold after that date. new text end

Sec. 7.

Minnesota Statutes 2016, section 340A.315, subdivision 7, is amended to read:

Subd. 7.

Distilled spirits permitted.

Farm wineries licensed under this section are permitted to manufacture distilled spirits as defined under section 340A.101, subdivision 9, which may exceed 25 percent alcohol by volume, made from Minnesota-produced or Minnesota-grown grapes, grape juice, other fruit bases, or honey. The following conditions pertain:

(1) no farm winery or firm owning multiple farm wineries may manufacture more than 5,000 gallons of distilled spirits in a given year, and this 5,000 gallon limit is part of the 50,000 gallon limit found in subdivision 2;

(2) new text begin a farm winery may not sell at on-sale, off-sale, or wholesale, a distilled spirit that does not qualify as a Minnesota spirit. For purposes of this section, to qualify as a Minnesota spirit, 50 percent of the distilled spirit must be processed and distilled on premises. Distilled spirits produced or in production prior to July 1, 2017, are not counted as part of the calculations under this clause;new text end

new text begin (3)new text end farm wineries must pay an additional annual fee of $50 to the commissioner before beginning production of distilled spirits; and

deleted text begin (3)deleted text end new text begin (4)new text end farm wineries may not sell or produce distilled spirits for direct sale to manufacturers licensed under section 340A.301, subdivision 6, paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017. new text end

Sec. 8.

new text begin [340A.425] SERVICE AT CAPITOL. new text end

new text begin Notwithstanding section 340A.412, subdivision 4, paragraph (a), clause (2), the city of St. Paul may issue an on-sale wine and malt liquor license for the premises known as the State Capitol, including the Capitol cafeteria. The commissioner of administration must specify those areas where service is being requested. The Department of Administration shall enter into an agreement with a food service vendor or another vendor on all matters related to the sale of wine and malt liquor in the Capitol. Section 16B.275 does not apply to the sale of wine and malt liquor in the Capitol and all fees charged or profits earned by the Department of Administration from the sale of wine and malt liquor in the Capitol must be deposited in a capitol revenues account in the special revenue fund and are appropriated to the commissioner for capitol preservation and programming. The Capitol must sell wine and malt liquor that are made in Minnesota. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Saint Paul City Council and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 9.

Minnesota Statutes 2016, section 340A.504, subdivision 6, is amended to read:

Subd. 6.

Municipalities may limit hours.

A municipality may further limit the new text begin days or new text end hours of on and off sales of alcoholic beverages, provided that further restricted on-sale hours for intoxicating liquor must apply equally to on-sale hours of 3.2 percent malt liquor. A city may not permit the sale of alcoholic beverages during hours when the sale is prohibited by this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Laws 1999, chapter 202, section 13, as amended by Laws 2013, chapter 42, section 8, is amended to read:

Sec. 13.

CITY OF ST. PAUL; LICENSES AUTHORIZED.

(a) The city of St. Paul may issue temporary intoxicating liquor licenses under Minnesota Statutes, section 340A.404, subdivision 10, to Macalester college for the Macalester Scottish fair, Springfest, and for the annual alumni reunion weekend without regard to the limitation in Minnesota Statutes, section 340A.410, subdivision 10, paragraph (b).

(b) Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, the city of St. Paul may issue a temporary on-sale intoxicating liquor license to Twin Cities in Motion, or its successor organization, if any. The license may authorize deleted text begin onlydeleted text end the sale of intoxicatingdeleted text begin malt liquor and 3.2 percent maltdeleted text end liquor on the grounds of the state capitol on the day of the Twin Cities Marathon. deleted text begin The intoxicatingdeleted text end new text begin Anynew text end malt liquor and 3.2 percent malt liquor new text begin sold new text end must be produced by a Minnesota brewery. All provisions of Minnesota Statutes, section 340A.404, subdivision 10, not inconsistent with this section, apply to the license authorized by this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Saint Paul City Council and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 11.

new text begin SPECIAL LICENSE; COLD SPRING. new text end

new text begin Notwithstanding any law or ordinance to the contrary, the city of Cold Spring may issue an intoxicating malt liquor license to the Cold Spring Baseball Association for sales at Cold Spring Baseball Park, located at 700 First Street South. The license may allow service and consumption anywhere within the Baseball Park, at events hosted or scheduled by the Association. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Cold Spring City Council and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 12.

new text begin FOOD HALL LICENSE; MINNEAPOLIS. new text end

new text begin Notwithstanding Minnesota Statutes, section 340A.101, subdivision 25, 340A.401, or 340A.410, subdivision 7, or any other law or ordinance to the contrary, the city of Minneapolis may issue an on-sale intoxicating liquor license for a licensee serving as an anchor tenant for a food hall to be located at 501 30th Avenue Southeast. The license may allow service and consumption anywhere within the licensee establishment, and anywhere within the larger food hall, provided that the larger premises is specified in the on-sale license. Multiple independent food vendors will be able to utilize a common seating area under the control of the liquor license holder to allow the public to purchase and consume food from third parties while also consuming licensed beverages sold by the license holder. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the city of Minneapolis and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 13.

new text begin CITY OF MINNEAPOLIS; SPECIAL LICENSES. new text end

new text begin The city of Minneapolis may issue an on-sale intoxicating liquor license to a restaurant located at 4312 Upton Avenue South, notwithstanding any law or local ordinance or charter provision. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Minneapolis City Council and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 14.

new text begin SPECIAL EVENTS; CAPITOL. new text end

new text begin Notwithstanding any law or ordinance to the contrary, the city of St. Paul may issue two separate temporary liquor licenses for special events at the Minnesota Capitol, allowing sale throughout the Capitol building and on the Capitol grounds, as specified by the commissioner of administration. The first special event license shall be for events relating to the ceremonial opening of the restored State Capitol in August 2017. The second special event license shall be for events associated with the Super Bowl and the construction of an ice castle in 2018. Licenses shall be for on-sale during all legal hours of service and shall allow all service of wine, malt liquor, and distilled spirits. Service must be limited to wine, malt liquor, and distilled spirits that are made in Minnesota. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Saint Paul City Council and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 15.

new text begin NATIONAL FOOTBALL LEAGUE TRAINING SITE; ON-SALE LICENSES. new text end

new text begin Notwithstanding Minnesota Statutes, section 340A.404, subdivision 1, or any other law or local ordinance to the contrary, the city of Eagan may issue an on-sale intoxicating liquor license to the owner of a National Football League sports facility located on property in the city of Eagan in Dakota County, legally described as Lot 1, Block 1, Viking Lakes, and to any concessionaire operator or third-party vendor under contract with the owner. The license authorizes the sale of intoxicating liquor to persons attending any and all events on Lots 1 and 2, Block 1, Viking Lakes, that are in conjunction with activities on Lot 1. The license may be issued for a space that is not compact and contiguous, provided that the licensed premises shall only be the space described in the approved license. The license authorizes sales on all days of the week. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the license under this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Eagan City Council and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 16.

new text begin SPECIAL LICENSE; NEW HOPE. new text end

new text begin Notwithstanding any law or ordinance to the contrary, the city of New Hope may issue an on-sale intoxicating liquor license for the New Hope Village Golf Course that is located at 8130 Bass Lake Road and is owned by the city. The provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the license issued under this section. The city of New Hope is deemed the licensee under this section, and the provisions of Minnesota Statutes, sections 340A.603 and 340A.604, apply to the license as if the establishment were a municipal liquor store. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the New Hope City Council and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 17.

new text begin SPECIAL LICENSE; SARTELL. new text end

new text begin The city of Sartell may issue an on-sale intoxicating liquor license, an on-sale wine license, or an on-sale malt liquor license for the city-owned facilities known as Sartell Community Center, located at 850 19th Street South; Pinecone Central Park, located at 1105 Central Park Blvd; and Champion Field, located at 710 12th Street North, notwithstanding any law, local ordinance, or charter provision. A license issued under this section authorizes sales on all days of the week to persons attending events at these facilities. The provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses issued under this section. The city of Sartell is deemed the licensee under this section, and the provisions of Minnesota Statutes, sections 340A.603 and 340A.604, apply to the licenses as if the facilities were a municipal liquor store. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Sartell City Council and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 18.

new text begin SPECIAL CLOSING TIMES; 2018 SUPER BOWL. new text end

new text begin During the 2018 National Football League Super Bowl at U.S. Bank Stadium, licensing jurisdictions that issue on-sale intoxicating liquor licenses under Minnesota Statutes, chapter 340A, may, at their discretion, issue special permits for service of alcohol through extended hours lasting until 4:00 a.m. each day. This section is subject to the following conditions: new text end

new text begin (1) only holders of an existing on-sale intoxicating liquor license or a 3.2 malt liquor license are eligible for later closing hours; new text end

new text begin (2) later closing hours apply only during the period from 12:00 p.m. on February 2, 2018, through 4:00 a.m. on February 5, 2018; new text end

new text begin (3) local licensing jurisdictions issuing special permits to operate with extended hours during the days listed in clause (2) may charge a fee up to but not to exceed $250 for a permit. In the process of issuing a permit under this section, the licensing jurisdiction may limit approval to specified geographic, zoning, or license classifications within its jurisdiction; and new text end

new text begin (4) this section expires at 4:01 a.m. on February 5, 2018. 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. 19.

new text begin REPEALER. new text end

new text begin Laws 2001, chapter 193, section 10, as amended by Laws 2013, chapter 137, article 4, section 6; and Laws 2013, chapter 137, article 4, section 6, new text end new text begin are repealed. new text end

Presented to the governor May 26, 2017

Signed by the governor May 30, 2017, 4:40 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes