1.1 	A bill for an act
1.2 	relating to the operation of state government; appropriating money for the 
1.3 	legislature, governor's office, state auditor, attorney general, secretary of state, 
1.4 	certain agencies, boards, councils, and retirement funds; changing provisions in 
1.5 	state government operations; changing provisions in military affairs and veterans 
1.6 	affairs, campaign finance, and elections;amending Minnesota Statutes 2016, 
1.7 	sections 3.305, subdivision 1; 3.855, subdivision 2; 3.8843, subdivision 7; 3.971, 
1.8 	subdivisions 2, 6; 3.972, by adding a subdivision; 3.98, subdivisions 1, 4; 3.987, 
1.9 	subdivision 1; 6.481, subdivisions 3, 6; 6.56, subdivision 2; 6.581, subdivision 4; 
1.10 	10A.01, subdivisions 12, 16; 10A.025, subdivision 1a; 10A.04, by adding a 
1.11 	subdivision; 10A.071, subdivision 1; 10A.09, subdivisions 5, 6; 10A.15, by adding 
1.12 	a subdivision; 10A.20, subdivision 3; 10A.25, subdivision 2; 10A.27, by adding 
1.13 	subdivisions; 10A.31, by adding a subdivision; 10A.323; 15.0145, subdivision 5; 
1.14 	15A.083, subdivisions 6a, 7; 16A.90; 16B.055, subdivision 1; 16B.2405; 16B.4805, 
1.15 	subdivision 2; 16E.0466; 43A.17, subdivision 11; 43A.24, by adding a subdivision; 
1.16 	138.081; 138.69; 155A.30, subdivision 5; 190.19, subdivisions 2, 2a; 196.05, 
1.17 	subdivision 1; 197.236, subdivision 9; 197.791, subdivisions 2, 3, 4, 5, 5a; 270.44; 
1.18 	270.45; 349A.08, subdivision 2; 349A.10, subdivision 6; 352D.06, subdivision 1; 
1.19 	353.27, subdivision 3c; 353.505; 508.12, subdivision 1; 518A.79, by adding a 
1.20 	subdivision; Laws 2016, chapter 127, section 8; Laws 2017, chapter 21, sections 
1.21 	1, subdivision 2; 3, subdivision 2; proposing coding for new law in Minnesota 
1.22 	Statutes, chapters 3; 6; 10A; 15; 16B; 118A; 134A; 197; 206; 270; repealing 
1.23 	Minnesota Statutes 2016, sections 6.581, subdivision 1; 204B.48; 349A.08, 
1.24 	subdivision 3; Minnesota Rules, parts 4501.0300, subpart 3; 4501.0500, subpart 
1.25 	2; 4503.0200, subpart 6; 4503.0300, subpart 4; 4503.0400, subpart 1; 4503.0500, 
1.26 	subparts 5, 8; 4503.0700, subparts 2, 3; 4503.1300, subpart 5; 4503.1400, subparts 
1.27 	8, 9; 4503.1450, subparts 1, 3; 4503.1600; 4503.1700; 4503.1800; 4505.0100, 
1.28 	subpart 3; 4505.0900, subparts 2, 3, 4, 5, 6, 7; 4511.0500, subpart 2; 4512.0100, 
1.29 	subparts 2, 4, 5; 4525.0210, subpart 1.
1.30 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.31 	ARTICLE 1
1.32 	STATE GOVERNMENT APPROPRIATIONS

1.33	Section 1. APPROPRIATIONS.
 	
2.1 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
2.2 	and for the purposes specified in this article. The appropriations are from the general fund, 
2.3 	or another named fund, and are available for the fiscal years indicated for each purpose. 
2.4 	The figures "2018" and "2019" used in this article mean that the appropriations listed under 
2.5 	them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. 
2.6 	"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" 
2.7 	is fiscal years 2018 and 2019.

2.8				APPROPRIATIONS
	
2.9				Available for the Year
	
2.10				Ending June 30
	
2.11					2018
		2019

2.12	Sec. 2. LEGISLATURE

2.13	Subdivision 1.Total Appropriation
 	$
	82,193,000
	$
	82,169,000

2.14	Appropriations by Fund
	
2.15		2018
	2019
	
2.16	General
	82,065,000
	82,041,000
	
2.17	Health Care Access
	128,000
	128,000
	
2.18 	The amounts that may be spent for each 
2.19 	purpose are specified in the following 
2.20 	subdivisions.

2.21	Subd. 2.Senate
 		32,299,000
		32,105,000

2.22	Subd. 3.House of Representatives
 		32,383,000
		32,383,000

2.23	Subd. 4.Legislative Coordinating Commission
 		17,511,000
		17,681,000

2.24	Appropriations by Fund
	
2.25	General
	17,383,000
	17,553,000
	
2.26	Health Care Access
	128,000
	128,000
	
2.27 	Appropriations provided by this subdivision 
2.28 	may be used for designated staff to support 
2.29 	the following offices and commissions: Office 
2.30 	of the Legislative Auditor; Office of the 
2.31 	Revisor of Statutes; Legislative Reference 
2.32 	Library; Geographic Information Services; 
2.33 	Legislative Budget Office; Legislative-Citizen 
2.34 	Commission on Minnesota Resources; 
2.35 	Legislative Commission on Pensions and 
3.1 	Retirement; Legislative Water Commission; 
3.2 	Mississippi River Parkway Commission; 
3.3 	Legislative Energy Commission; and the 
3.4 	Lessard-Sams Outdoor Heritage Council. The 
3.5 	operation of all other joint offices and 
3.6 	commissions must be supported by the central 
3.7 	administrative staff of the Legislative 
3.8 	Coordinating Commission. This appropriation 
3.9 	may additionally be used for central 
3.10 	administrative staff to support the work of the 
3.11 	Economic Status of Women Advisory 
3.12 	Committee.
3.13 	From its funds, $10,000 each year is for 
3.14 	purposes of the legislators' forum, through 
3.15 	which Minnesota legislators meet with 
3.16 	counterparts from South Dakota, North 
3.17 	Dakota, and Manitoba to discuss issues of 
3.18 	mutual concern.
3.19 	The base for the Legislative Budget Office is 
3.20 	$818,000 for fiscal year 2020 and each year 
3.21 	thereafter.
3.22 	Legislative Auditor. $6,744,000 the first year 
3.23 	and $6,564,000 the second year are for the 
3.24 	Office of the Legislative Auditor.
3.25 	Of these amounts, $130,000 the first year is 
3.26 	for the transit financial activity reviews 
3.27 	required by Minnesota Statutes, section 3.972, 
3.28 	subdivision 4.
3.29 	No later than January 15, 2018, the legislative 
3.30 	auditor must complete an assessment of the 
3.31 	adequacy of the county audits performed by 
3.32 	the state auditor in calendar year 2016. The 
3.33 	standards for conducting the assessment must 
3.34 	be identical to those described in the report of 
4.1 	the state auditor dated March 2017, titled 
4.2 	"Assessing the Adequacy of 2015 County 
4.3 	Audits Performed by Private CPA Firms."
4.4 	Revisor of Statutes. $6,430,000 the first year 
4.5 	and $6,093,000 the second year are for the 
4.6 	Office of the Revisor of Statutes.
4.7 	Of these amounts, $250,000 in the first year 
4.8 	is for upgrades and repairs to the information 
4.9 	technology data center located in the State 
4.10 	Office Building.
4.11 	Legislative Reference Library. $1,622,000 
4.12 	the first year and $1,445,000 the second year 
4.13 	are for the Legislative Reference Library.
4.14 	Of these amounts, $177,000 the first year is 
4.15 	for the digital preservation of audio recordings 
4.16 	documenting committee hearings and floor 
4.17 	sessions of the legislature.

4.18
4.19	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	3,616,000
	$
	3,616,000
	
4.20 	(a) This appropriation is to fund the Office of 
4.21 	the Governor and Lieutenant Governor.
4.22 	(b) Up to $19,000 the first year and up to 
4.23 	$19,000 the second year are for necessary 
4.24 	expenses in the normal performance of the 
4.25 	Governor's and Lieutenant Governor's duties 
4.26 	for which no other reimbursement is provided.

4.27	Sec. 4. STATE AUDITOR

4.28	Subdivision 1.Total Appropriation
 	$
	9,748,000
	$
	10,037,000
	
4.29 	The amounts that may be spent for each 
4.30 	purpose are specified in the following 
4.31 	subdivisions.

4.32	Subd. 2.Audit Practice
 		7,449,000
		7,694,000

5.1	Subd. 3.Legal and Special Investigations
 		344,000
		344,000

5.2	Subd. 4.Government Information
 		702,000
		746,000

5.3	Subd. 5.Pension Oversight
 		485,000
		485,000

5.4	Subd. 6.Operations Management
 		488,000
		488,000

5.5	Subd. 7.Constitutional Office
 		280,000
		280,000

5.6	Sec. 5. ATTORNEY GENERAL

5.7	Subdivision 1.Total Appropriation
 	$
	24,925,000
	$
	24,925,000

5.8	Appropriations by Fund
	
5.9		2018
	2019
	
5.10	General
	22,125,000
	22,125,000
	
5.11
5.12	State Government 
Special Revenue
	2,405,000
	2,405,000
	
5.13	Environmental
	145,000
	145,000
	
5.14	Remediation
	250,000
	250,000
	
5.15 	The amounts that may be spent for each 
5.16 	purpose are specified in the following 
5.17 	subdivisions.

5.18	Subd. 2.Government Legal Services
 		3,948,000
		3,948,000

5.19	Subd. 3.Regulatory Law and Professions
 		5,182,000
		5,182,000

5.20	Appropriations by Fund
	
5.21		2018
	2019
	
5.22	General
	2,403,000
	2,403,000
	
5.23
5.24	State Government 
Special Revenue
	2,384,000
	2,384,000
	
5.25	Environmental
	250,000
	250,000
	
5.26	Remediation
	145,000
	145,000

5.27	Subd. 4.State Government Services
 		6,654,000
		6,654,000

5.28	Appropriations by Fund
	
5.29		2018
	2019
	
5.30	General
	6,633,000
	6,633,000
	
5.31
5.32	State Government 
Special Revenue
	21,000
	21,000

6.1	Subd. 5.Civil Law Section
 		3,254,000
		3,254,000

6.2	Subd. 6.Civil Litigation
 		1,617,000
		1,617,000

6.3	Subd. 7.Administrative Operations
 		4,270,000
		4,270,000

6.4	Sec. 6. SECRETARY OF STATE

6.5	Subdivision 1.Total Appropriation
 	$
	13,631,000
	$
	6,742,000
	
6.6 	The base for fiscal year 2020 is $6,631,000 
6.7 	and the base for fiscal year 2021 is 
6.8 	$6,631,000.
6.9 	The amounts that may be spent for each 
6.10 	purpose are specified in the following 
6.11 	subdivisions.

6.12	Subd. 2.Administration
 		642,000
		655,000

6.13	Subd. 3.Safe at Home
 		659,000
		676,000

6.14	Subd. 4.Business Services
 		1,750,000
		1,502,000

6.15	Subd. 5.Elections
 		10,580,000
		3,909,000
	
6.16 	Of these amounts, $7,000,000 the first year is 
6.17 	for election equipment grants under Minnesota 
6.18 	Statutes, section 206.95. This appropriation is 
6.19 	available until June 30, 2020.

6.20
6.21	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	1,036,000
	$
	1,044,000

6.22	Sec. 8. STATE BOARD OF INVESTMENT
 	$
	139,000
	$
	139,000

6.23	Sec. 9. ADMINISTRATIVE HEARINGS

6.24	Subdivision 1.Total Appropriation
 	$
	8,184,000
	$
	8,186,000

6.25	Appropriations by Fund
	
6.26		2018
	2019
	
6.27	General
	397,000
	399,000
	
6.28
6.29	Workers' 
Compensation
	7,787,000
	7,787,000
	
7.1 	The amounts that may be spent for each 
7.2 	purpose are specified in the following 
7.3 	subdivisions.

7.4	Subd. 2.Campaign Violations
 		115,000
		115,000
	
7.5 	These amounts are for the cost of considering 
7.6 	complaints filed under Minnesota Statutes, 
7.7 	section 211B.32. These amounts may be used 
7.8 	in either year of the biennium.

7.9	Subd. 3.Data Practices
 		20,000
		22,000
	
7.10 	These amounts are for the cost of considering 
7.11 	data practices complaints filed under 
7.12 	Minnesota Statutes, section 13.085. These 
7.13 	amounts may be used in either year of the 
7.14 	biennium.

7.15	Subd. 4.Municipal Boundary Adjustments
 		262,000
		262,000

7.16	Sec. 10. OFFICE OF MN.IT SERVICES

7.17	Subdivision 1.Total Appropriation
 	$
	2,642,000
	$
	2,662,000
	
7.18 	The amounts that may be spent for each 
7.19 	purpose are specified in the following 
7.20 	subdivisions.
7.21 	The state chief information officer must 
7.22 	prioritize use of appropriations provided by 
7.23 	this section to enhance cybersecurity across 
7.24 	state government.

7.25	Subd. 2.State Chief Information Officer
 		1,336,000
		1,356,000
	
7.26 	The commissioner of management and budget 
7.27 	is authorized to provide cash flow assistance 
7.28 	of up to $110,000,000 from the special 
7.29 	revenue fund or other statutory general funds 
7.30 	as defined in Minnesota Statutes, section 
7.31 	16A.671, subdivision 3, paragraph (a), to the 
7.32 	Office of MN.IT Services for the purpose of 
7.33 	managing revenue and expenditure 
8.1 	differences. These funds shall be repaid with 
8.2 	interest by the end of the fiscal year 2019 
8.3 	closing period.
8.4 	During the biennium ending June 30, 2019, 
8.5 	the Office of MN.IT Services must not charge 
8.6 	fees to a public noncommercial educational 
8.7 	television broadcast station eligible for funding 
8.8 	under Minnesota Statutes, chapter 129D, for 
8.9 	access to the state broadcast infrastructure. If 
8.10 	the access fees not charged to public 
8.11 	noncommercial educational television 
8.12 	broadcast stations total more than $400,000 
8.13 	for the biennium, the office may charge for 
8.14 	access fees in excess of these amounts.

8.15	Subd. 3.Geospatial Information Office
 		871,000
		871,000

8.16	Subd. 4.Enterprise IT Security
 		435,000
		435,000

8.17	Sec. 11. ADMINISTRATION

8.18	Subdivision 1.Total Appropriation
 	$
	24,445,000
	$
	23,867,000
	
8.19 	The amounts that may be spent for each 
8.20 	purpose are specified in the following 
8.21 	subdivisions.

8.22	Subd. 2.Government and Citizen Services
 		9,678,000
		9,450,000
	
8.23 	This appropriation includes funds for 
8.24 	information technology project services and 
8.25 	support subject to the provisions of Minnesota 
8.26 	Statutes, section 16E.0466. Any ongoing 
8.27 	information technology costs must be 
8.28 	incorporated into the service level agreement 
8.29 	and must be paid to the Office of MN.IT 
8.30 	Services by the commissioner of 
8.31 	administration under the rates and mechanism 
8.32 	specified in that agreement.
9.1 	Council on Developmental Disabilities.
9.2 	$74,000 the first year and $74,000 the second 
9.3 	year are for the Council on Developmental 
9.4 	Disabilities.
9.5 	Olmstead Plan. $148,000 each year is for the 
9.6 	Olmstead plan.
9.7 	Continuous Improvement Program. 
9.8 	$417,000 the first year and $418,000 the 
9.9 	second year are for the continuous 
9.10 	improvement program.
9.11 	Materials Management. $2,408,000 the first 
9.12 	year and $2,409,000 the second year are for 
9.13 	materials management.
9.14 	Plant Management. $488,000 each year is 
9.15 	for plant management.
9.16 	Real Estate and Construction Services.
9.17 	$2,763,000 the first year and $2,811,000 the 
9.18 	second year are for real estate and construction 
9.19 	services.
9.20 	Enterprise Real Property. $711,000 the first 
9.21 	year and $717,000 the second year are for 
9.22 	enterprise real property.
9.23 	Small Agency Resource Team (SmART).
9.24 	$466,000 the first year and $467,000 the 
9.25 	second year are for the small agency resource 
9.26 	team.
9.27 	State Agency Accommodation 
9.28 	Reimbursement. $200,000 the first year and 
9.29 	$200,000 the second year are credited to the 
9.30 	accommodation account established in 
9.31 	Minnesota Statutes, section 16B.4805.
10.1 	Community Services. $2,003,000 the first 
10.2 	year and $1,718,000 the second year are for 
10.3 	community services.
10.4 	(a) $215,000 the first year and $215,000 the 
10.5 	second year are for the state archaeologist.
10.6 	(b) $525,000 the first year and $525,000 the 
10.7 	second year are for information policy 
10.8 	analysis.
10.9 	(c) $737,000 the first year and $737,000 the 
10.10 	second year are for the state demographer. Of 
10.11 	this amount, $190,000 each year is for the 
10.12 	2020 census.
10.13 	(d) $130,000 the first year and $130,000 the 
10.14 	second year are for the Office of Grants 
10.15 	Management.
10.16 	(e) $300,000 the first year is for the State 
10.17 	Historic Preservation Office.
10.18 	(f) $96,000 the first year and $111,000 the 
10.19 	second year are for operating adjustments and 
10.20 	may be transferred to activities under 
10.21 	paragraphs (a) to (d).

10.22	Subd. 3.Strategic Management Services
 		2,212,000
		2,245,000
	
10.23 	Executive Leadership/Partnerships.
10.24 	$702,000 the first year and $719,000 the 
10.25 	second year are for executive 
10.26 	leadership/partnerships.
10.27 	School Trust Lands Director. $185,000 each 
10.28 	year is for school trust lands director.
10.29 	Financial Management and Reporting.
10.30 	$871,000 the first year and $884,000 the 
10.31 	second year are for financial management and 
10.32 	reporting.
11.1 	Human Resources. $454,000 the first year 
11.2 	and $457,000 the second year are for human 
11.3 	resources.

11.4	Subd. 4.Fiscal Agent
 		12,555,000
		12,172,000
	
11.5 	In-Lieu of Rent. $9,374,000 the first year and 
11.6 	$9,391,000 the second year are for space costs 
11.7 	of the legislature and veterans organizations, 
11.8 	ceremonial space, and statutorily free space.
11.9 	Public Television. (a) $1,550,000 the first 
11.10 	year and $1,550,000 the second year are for 
11.11 	matching grants for public television.
11.12 	(b) $250,000 the first year and $250,000 the 
11.13 	second year are for public television 
11.14 	equipment grants under Minnesota Statutes, 
11.15 	section 129D.13.
11.16 	(c) The commissioner of administration must 
11.17 	consider the recommendations of the 
11.18 	Minnesota Public Television Association 
11.19 	before allocating the amounts appropriated in 
11.20 	paragraphs (a) and (b) for equipment or 
11.21 	matching grants.
11.22 	Public Radio. (a) $392,000 the first year and 
11.23 	$392,000 the second year are for community 
11.24 	service grants to public educational radio 
11.25 	stations. This appropriation may be used to 
11.26 	disseminate emergency information in foreign 
11.27 	languages.
11.28 	(b) $117,000 the first year and $117,000 the 
11.29 	second year are for equipment grants to public 
11.30 	educational radio stations. This appropriation 
11.31 	may be used for the repair, rental, and 
11.32 	purchase of equipment including equipment 
11.33 	under $500.
12.1 	(c) $310,000 the first year and $310,000 the 
12.2 	second year are for equipment grants to 
12.3 	Minnesota Public Radio, Inc., including 
12.4 	upgrades to Minnesota's Emergency Alert and 
12.5 	AMBER Alert Systems.
12.6 	(d) $400,000 the first year is for a grant to 
12.7 	Minnesota Public Radio, Inc. for upgrades to 
12.8 	Minnesota's Emergency Alert and AMBER 
12.9 	Alert Systems.
12.10 	(e) The appropriations in paragraphs (a) to (d) 
12.11 	may not be used for indirect costs claimed by 
12.12 	an institution or governing body.
12.13 	(f) The commissioner of administration must 
12.14 	consider the recommendations of the 
12.15 	Association of Minnesota Public Educational 
12.16 	Radio Stations before awarding grants under 
12.17 	Minnesota Statutes, section 129D.14, using 
12.18 	the appropriations in paragraphs (a) and (b). 
12.19 	No grantee is eligible for a grant unless they 
12.20 	are a member of the Association of Minnesota 
12.21 	Public Educational Radio Stations on or before 
12.22 	July 1, 2017.
12.23 	(g) Any unencumbered balance remaining the 
12.24 	first year for grants to public television or 
12.25 	public radio stations does not cancel and is 
12.26 	available for the second year.
12.27 	(h) $162,000 each year is for transfer to the 
12.28 	Minnesota Film and TV Board. The 
12.29 	appropriation in each year is available only 
12.30 	upon receipt by the board of $1 in matching 
12.31 	contributions of money or in-kind 
12.32 	contributions from nonstate sources for every 
12.33 	$3 provided by this appropriation, except that 
12.34 	each year up to $50,000 is available on July 
13.1 	1 even if the required matching contribution 
13.2 	has not been received by that date.

13.3
13.4	Sec. 12. CAPITOL AREA ARCHITECTURAL 
AND PLANNING BOARD
 	$
	347,000
	$
	350,000

13.5
13.6	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	25,447,000
	$
	26,026,000

13.7	Subdivision 1.Appropriations
 					
13.8 	The amounts that may be spent for each 
13.9 	purpose are specified in the following 
13.10 	subdivisions.
13.11 	This appropriation includes funds for 
13.12 	information technology project services and 
13.13 	support subject to the provisions of Minnesota 
13.14 	Statutes, section 16E.0466. Any ongoing 
13.15 	information technology costs must be 
13.16 	incorporated into the service level agreement 
13.17 	and must be paid to the Office of MN.IT 
13.18 	Services by the commissioner of management 
13.19 	and budget under the rates and mechanism 
13.20 	specified in that agreement.

13.21	Subd. 2.Accounting Services
 		5,060,000
		5,060,000

13.22	Subd. 3.Budget Services
 		3,443,000
		3,443,000

13.23	Subd. 4.Economic Analysis
 		548,000
		548,000

13.24	Subd. 5.Debt Management
 		475,000
		475,000

13.25
13.26	Subd. 6.Enterprise Communications and 
Planning
 		1,074,000
		1,074,000

13.27	Subd. 7.Enterprise Human Resources
 		3,469,000
		3,469,000

13.28	Subd. 8.Labor Relations
 		1,123,000
		1,123,000

13.29	Subd. 9.Agency Administration
 		10,255,000
		10,834,000
	
13.30 	(a) $632,000 the first year and $1,204,000 the 
13.31 	second year are for operating adjustments and 
13.32 	may be transferred to any other activity under 
13.33 	this section.
14.1 	(b) $1,115,000 the first year and $1,122,000 
14.2 	the second year are for system security and 
14.3 	risk management.

14.4	Sec. 14. REVENUE

14.5	Subdivision 1.Total Appropriation
 	$
	153,506,000
	$
	157,401,000

14.6	Appropriations by Fund
	
14.7		2018
	2019
	
14.8	General
	149,270,000
	153,165,000
	
14.9	Health Care Access
	1,749,000
	1,749,000
	
14.10
14.11	Highway User Tax 
Distribution
	2,184,000
	2,184,000
	
14.12	Environmental
	303,000
	303,000
	
14.13 	This appropriation includes funds for 
14.14 	information technology project services and 
14.15 	support subject to the provisions of Minnesota 
14.16 	Statutes, section 16E.0466. Any ongoing 
14.17 	information technology costs must be 
14.18 	incorporated into the service level agreement 
14.19 	and must be paid to the Office of MN.IT 
14.20 	Services by the commissioner of revenue 
14.21 	under the rates and mechanism specified in 
14.22 	that agreement. This section is not effective 
14.23 	until the day following enactment of First 
14.24 	Special Session 2017, House File No. 1.

14.25	Subd. 2.Tax System Management
 		124,890,000
		128,785,000

14.26	Appropriations by Fund
	
14.27		2018
	2019
	
14.28	General
	120,654,000
	124,549,000
	
14.29	Health Care Access
	1,749,000
	1,749,000
	
14.30
14.31	Highway User Tax 
Distribution
	2,184,000
	2,184,000
	
14.32	Environmental
	303,000
	303,000

14.33	(a) Operations Support
					
14.34	General
				10,134,000
		10,134,000
	
14.35	Health Care Access
				126,000
		126,000

15.1	(b) Appeals, Legal Services, and Tax Research
					
15.2	General
				7,251,000
		7,251,000
	
15.3	Health Care Access
				113,000
		113,000

15.4	(c) Payment and Return Processing
					
15.5	General
				13,177,000
		13,177,000
	
15.6	Health Care Access
				51,000
		51,000
	
15.7
15.8	Highway User Tax 
Distribution
				343,000
		343,000

15.9	(d) Administration of State Taxes
					
15.10	General
				57,408,000
		57,248,000
	
15.11	Health Care Access
				1,407,000
		1,407,000
	
15.12
15.13	Highway User Tax 
Distribution
				1,621,000
		1,621,000
	
15.14	Environmental
				303,000
		303,000
	
15.15 	(1) $160,000 from the general fund in the first 
15.16 	year is for administration of a first-time home 
15.17 	buyer savings account program. This 
15.18 	appropriation is canceled to the general fund 
15.19 	if income tax provisions related to first-time 
15.20 	home buyer savings accounts are not enacted 
15.21 	by law at the 2017 regular or special 
15.22 	legislative session.
15.23 	(2) $400,000 in fiscal year 2018 and $400,000 
15.24 	in fiscal year 2019 from the general fund are 
15.25 	for grants to one or more nonprofit 
15.26 	organizations, qualifying under section 
15.27 	501(c)(3) of the Internal Revenue Code of 
15.28 	1986, to coordinate, facilitate, encourage, and 
15.29 	aid in the provision of taxpayer assistance 
15.30 	services. The unencumbered balance in the 
15.31 	first year does not cancel but is available for 
15.32 	the second year.
15.33 	For purposes of this appropriation, "taxpayer 
15.34 	assistance services" means accounting and tax 
15.35 	preparation services provided by volunteers 
15.36 	to low-income, elderly, and disadvantaged 
16.1 	Minnesota residents to help them file federal 
16.2 	and state income tax returns, Minnesota 
16.3 	property tax refund claims, and to provide 
16.4 	personal representation before the Department 
16.5 	of Revenue and Internal Revenue Service.
16.6 	For the fiscal year 2020-2021 biennial budget, 
16.7 	the commissioner must develop a budget 
16.8 	structure that reflects actual spending to the 
16.9 	budget activity level. This detail must be 
16.10 	available in the Budget Planning and Analysis 
16.11 	System.

16.12
16.13	(e) Technology Development, Implementation, 
and Support
					
16.14	General
				22,784,000
		22,784,000
	
16.15	Health Care Access
				52,000
		52,000
	
16.16
16.17	Highway User Tax 
Distribution
				220,000
		220,000

16.18	(f) Property Tax Administration and State Aid
					
16.19	General
				4,173,000
		4,173,000

16.20	(g) Effective and Efficient Tax Service
		5,727,000
		9,782,000
	
16.21 	These appropriations are for increased 
16.22 	operation costs. The commissioner may 
16.23 	transfer money in these appropriations to other 
16.24 	activities in this subdivision.

16.25	Subd. 3.Debt Collection Management
 		28,616,000
		28,616,000

16.26	Sec. 15. HUMAN RIGHTS
 	$
	4,393,000
	$
	4,580,000

16.27	Sec. 16. GAMBLING CONTROL
 	$
	3,422,000
	$
	3,457,000
	
16.28 	These appropriations are from the lawful 
16.29 	gambling regulation account in the special 
16.30 	revenue fund.

16.31	Sec. 17. RACING COMMISSION
 	$
	845,000
	$
	908,000
	
17.1 	These appropriations are from the racing and 
17.2 	card playing regulation accounts in the special 
17.3 	revenue fund.

17.4	Sec. 18. STATE LOTTERY
 					
17.5 	Notwithstanding Minnesota Statutes, section 
17.6 	349A.10, subdivision 3, the State Lottery's 
17.7 	operating budget must not exceed $32,500,000 
17.8 	in fiscal year 2018 and $33,000,000 in fiscal 
17.9 	year 2019.

17.10	Sec. 19. AMATEUR SPORTS COMMISSION
 	$
	303,000
	$
	305,000

17.11
17.12	Sec. 20. COUNCIL ON MINNESOTANS OF 
AFRICAN HERITAGE
 	$
	403,000
	$
	406,000

17.13	Sec. 21. COUNCIL ON LATINO AFFAIRS
 	$
	477,000
	$
	494,000

17.14
17.15	Sec. 22. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	457,000
	$
	464,000

17.16	Sec. 23. INDIAN AFFAIRS COUNCIL
 	$
	580,000
	$
	584,000

17.17
17.18	Sec. 24. MINNESOTA HISTORICAL 
SOCIETY

17.19	Subdivision 1.Total Appropriation
 	$
	23,393,000
	$
	23,893,000
	
17.20 	The amounts that may be spent for each 
17.21 	purpose are specified in the following 
17.22 	subdivisions.

17.23	Subd. 2.Operations and Programs
 		23,072,000
		23,572,000
	
17.24 	$750,000 the first year and $750,000 the 
17.25 	second year are for digital preservation and 
17.26 	access, including planning and implementation 
17.27 	of a program to preserve and make available 
17.28 	resources related to Minnesota history. These 
17.29 	are onetime appropriations.

17.30	Subd. 3.Fiscal Agent

18.1	(a) Global Minnesota
		39,000
		39,000

18.2	(b) Minnesota Air National Guard Museum
		17,000
		17,000

18.3	(c) Minnesota Military Museum
		50,000
		50,000

18.4	(d) Farmamerica
		115,000
		115,000

18.5	(e) Hockey Hall of Fame
		100,000
		100,000
	
18.6 	Any unencumbered balance remaining in this 
18.7 	subdivision the first year does not cancel but 
18.8 	is available for the second year of the 
18.9 	biennium.

18.10	Sec. 25. BOARD OF THE ARTS

18.11	Subdivision 1.Total Appropriation
 	$
	7,534,000
	$
	7,539,000
	
18.12 	The amounts that may be spent for each 
18.13 	purpose are specified in the following 
18.14 	subdivisions.

18.15	Subd. 2.Operations and Services
 		595,000
		600,000

18.16	Subd. 3.Grants Program
 		4,800,000
		4,800,000

18.17	Subd. 4.Regional Arts Councils
 		2,139,000
		2,139,000
	
18.18 	Any unencumbered balance remaining in this 
18.19 	section the first year does not cancel, but is 
18.20 	available for the second year.
18.21 	Money appropriated in this section and 
18.22 	distributed as grants may only be spent on 
18.23 	projects located in Minnesota. A recipient of 
18.24 	a grant funded by an appropriation in this 
18.25 	section must not use more than ten percent of 
18.26 	the total grant for costs related to travel outside 
18.27 	the state of Minnesota.

18.28	Sec. 26. MINNESOTA HUMANITIES CENTER
 	$
	950,000
	$
	950,000
	
18.29 	(a) $325,000 each year is for the Healthy 
18.30 	Eating, Here at Home program under 
18.31 	Minnesota Statutes, section 138.912. No more 
19.1 	than three percent of the appropriation may 
19.2 	be used for the nonprofit administration of this 
19.3 	program.
19.4 	(b) $250,000 each year is for grants to the 
19.5 	Veterans Defense Project. Grants must be used 
19.6 	to support, through education and outreach, 
19.7 	military veterans who are involved with the 
19.8 	criminal justice system. These are onetime 
19.9 	appropriations.

19.10	Sec. 27. BOARD OF ACCOUNTANCY
 	$
	645,000
	$
	649,000

19.11
19.12
19.13
19.14	Sec. 28. BOARD OF ARCHITECTURE 
ENGINEERING, LAND SURVEYING, 
LANDSCAPE ARCHITECTURE, 
GEOSCIENCE, AND INTERIOR DESIGN
 	$
	799,000
	$
	804,000

19.15
19.16	Sec. 29. BOARD OF COSMETOLOGIST 
EXAMINERS
 	$
	2,775,000
	$
	2,785,000
	
19.17 	The executive director must report quarterly 
19.18 	to the chairs and ranking minority members 
19.19 	of the committees in the house of 
19.20 	representatives and senate with jurisdiction 
19.21 	over state government finance on the number 
19.22 	of inspections conducted by license type in 
19.23 	the past quarter, number and percent of total 
19.24 	salons and schools inspected within the last 
19.25 	year, total number of licensees by type, and 
19.26 	the number of inspectors employed by the 
19.27 	board. The first report must be submitted by 
19.28 	July 15, 2017.

19.29	Sec. 30. BOARD OF BARBER EXAMINERS
 	$
	341,000
	$
	343,000

19.30
19.31	Sec. 31. GENERAL CONTINGENT 
ACCOUNTS
 	$
	1,000,000
	$
	500,000

19.32	Appropriations by Fund
	
19.33		2018
	2019
	
20.1	General
	500,000
	-0-
	
20.2
20.3	State Government 
Special Revenue
	400,000
	400,000
	
20.4
20.5	Workers' 
Compensation
	100,000
	100,000
	
20.6 	(a) The appropriations in this section may only 
20.7 	be spent with the approval of the governor 
20.8 	after consultation with the Legislative 
20.9 	Advisory Commission pursuant to Minnesota 
20.10 	Statutes, section 3.30.
20.11 	(b) If an appropriation in this section for either 
20.12 	year is insufficient, the appropriation for the 
20.13 	other year is available for it.
20.14 	(c) If a contingent account appropriation is 
20.15 	made in one fiscal year, it should be 
20.16 	considered a biennial appropriation.

20.17	Sec. 32. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
20.18 	These appropriations are to be spent by the 
20.19 	commissioner of management and budget 
20.20 	according to Minnesota Statutes, section 
20.21 	3.736, subdivision 7. If the appropriation for 
20.22 	either year is insufficient, the appropriation 
20.23 	for the other year is available for it.

20.24
20.25	Sec. 33. MINNESOTA STATE RETIREMENT 
SYSTEM

20.26	Subdivision 1.Total Appropriation
 	$
	14,893,000
	$
	15,071,000
	
20.27 	The amounts that may be spent for each 
20.28 	purpose are specified in the following 
20.29 	subdivisions.

20.30
20.31	Subd. 2.Combined Legislators and 
Constitutional Officers Retirement Plan
 		8,893,000
		9,071,000
	
20.32 	Under Minnesota Statutes, sections 3A.03, 
20.33 	subdivision 2; 3A.04, subdivisions 3 and 4; 
20.34 	and 3A.115.
21.1 	If an appropriation in this section for either 
21.2 	year is insufficient, the appropriation for the 
21.3 	other year is available for it.

21.4	Subd. 3.Judges Retirement Plan
 		6,000,000
		6,000,000
	
21.5 	For transfer to the judges retirement fund 
21.6 	under Minnesota Statutes, section 490.123. 
21.7 	$6,000,000 each fiscal year is included in the 
21.8 	base for fiscal years 2020 and 2021. This 
21.9 	transfer continues each fiscal year until the 
21.10 	judges retirement plan reaches 100 percent 
21.11 	funding as determined by an actuarial 
21.12 	valuation prepared according to Minnesota 
21.13 	Statutes, section 356.214.

21.14
21.15	Sec. 34. PUBLIC EMPLOYEES RETIREMENT 
ASSOCIATION
 	$
	16,000,000
	$
	16,000,000
	
21.16 	General employees retirement plan of the 
21.17 	Public Employees Retirement Association 
21.18 	relating to the merged former MERF division.
21.19 	State payments from the general fund to the 
21.20 	Public Employees Retirement Association on 
21.21 	behalf of the former MERF division account 
21.22 	are $16,000,000 on September 15, 2017, and 
21.23 	$16,000,000 on September 15, 2018.
21.24 	These amounts are estimated to be needed 
21.25 	under Minnesota Statutes, section 353.505.

21.26
21.27	Sec. 35. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	29,831,000
	$
	29,831,000
	
21.28 	The amounts estimated to be needed are as 
21.29 	follows:
21.30 	Special Direct State Aid. $27,331,000 the 
21.31 	first year and $27,331,000 the second year are 
21.32 	for special direct state aid authorized under 
21.33 	Minnesota Statutes, section 354.436.
22.1 	Special Direct State Matching Aid. 
22.2 	$2,500,000 the first year and $2,500,000 the 
22.3 	second year are for special direct state 
22.4 	matching aid authorized under Minnesota 
22.5 	Statutes, section 354.435.

22.6
22.7	Sec. 36. ST. PAUL TEACHERS RETIREMENT 
FUND
 	$
	9,827,000
	$
	9,827,000
	
22.8 	The amounts estimated to be needed for 
22.9 	special direct state aid to the first class city 
22.10 	teachers retirement fund association authorized 
22.11 	under Minnesota Statutes, section 354A.12, 
22.12 	subdivisions 3a and 3c.

22.13	Sec. 37. MILITARY AFFAIRS

22.14	Subdivision 1.Total Appropriation
 	$
	24,836,000
	$
	22,920,000
	
22.15 	The amounts that may be spent for each 
22.16 	purpose are specified in the following 
22.17 	subdivisions.

22.18	Subd. 2.Maintenance of Training Facilities
 		9,677,000
		9,694,000
	
22.19 	Of the funds transferred to maintenance of 
22.20 	training facilities in Laws 2015, chapter 77, 
22.21 	article 1, section 36, subdivision 4, $2,000,000 
22.22 	in fiscal year 2017 may be transferred to the 
22.23 	enlistment incentives appropriation to address 
22.24 	a projected fiscal year 2017 deficit in the 
22.25 	enlistment incentives program.

22.26	Subd. 3.General Support
 		3,090,000
		3,114,000

22.27	Subd. 4.Enlistment Incentives
 		12,069,000
		10,112,000
	
22.28 	The appropriations in this subdivision are 
22.29 	available until June 30, 2021, except that any 
22.30 	unspent amounts allocated to a program 
22.31 	otherwise supported by this appropriation are 
22.32 	canceled to the general fund upon receipt of 
23.1 	federal funds in the same amount to support 
23.2 	administration of that program.
23.3 	If appropriations for either year of the 
23.4 	biennium are insufficient, the appropriation 
23.5 	from the other year is available.

23.6	Sec. 38. VETERANS AFFAIRS

23.7	Subdivision 1.Total Appropriation
 	$
	75,010,000
	$
	75,497,000
	
23.8 	The amounts that may be spent for each 
23.9 	purpose are specified in the following 
23.10 	subdivisions.

23.11	Subd. 2.Veterans Programs and Services
 		17,375,000
		17,440,000
	
23.12 	Veterans Service Organizations. $353,000 
23.13 	each year is for grants to the following 
23.14 	congressionally chartered veterans service 
23.15 	organizations as designated by the 
23.16 	commissioner: Disabled American Veterans, 
23.17 	Military Order of the Purple Heart, the 
23.18 	American Legion, Veterans of Foreign Wars, 
23.19 	Vietnam Veterans of America, AMVETS, and 
23.20 	Paralyzed Veterans of America. This funding 
23.21 	must be allocated in direct proportion to the 
23.22 	funding currently being provided by the 
23.23 	commissioner to these organizations.
23.24 	Minnesota Assistance Council for Veterans.
23.25 	$750,000 each year is for a grant to the 
23.26 	Minnesota Assistance Council for Veterans 
23.27 	to provide assistance throughout Minnesota 
23.28 	to veterans and their families who are 
23.29 	homeless or in danger of homelessness, 
23.30 	including assistance with the following:
23.31 	(1) utilities;
23.32 	(2) employment; and
23.33 	(3) legal issues.
24.1 	The assistance authorized under this paragraph 
24.2 	must be made only to veterans who have 
24.3 	resided in Minnesota for 30 days prior to 
24.4 	application for assistance and according to 
24.5 	other guidelines established by the 
24.6 	commissioner. In order to avoid duplication 
24.7 	of services, the commissioner must ensure that 
24.8 	this assistance is coordinated with all other 
24.9 	available programs for veterans.
24.10 	Honor Guards. $200,000 each year is for 
24.11 	compensation for honor guards at the funerals 
24.12 	of veterans under Minnesota Statutes, section 
24.13 	197.231.
24.14 	Minnesota GI Bill. $200,000 each year is for 
24.15 	the costs of administering the Minnesota GI 
24.16 	Bill postsecondary educational benefits, 
24.17 	on-the-job training, and apprenticeship 
24.18 	program under Minnesota Statutes, section 
24.19 	197.791.
24.20 	Gold Star Program. $100,000 each year is 
24.21 	for administering the Gold Star Program for 
24.22 	surviving family members of deceased 
24.23 	veterans.
24.24 	County Veterans Service Office. $1,100,000 
24.25 	each year is for funding the County Veterans 
24.26 	Service Office grant program under Minnesota 
24.27 	Statutes, section 197.608.
24.28 	Veterans Journey Home. $350,000 each year 
24.29 	is for grants to the veterans Journey Home 
24.30 	program. Grants must support the development 
24.31 	of new or rehabilitated affordable housing 
24.32 	dedicated for low-to-moderate income 
24.33 	veterans and their families. These are onetime 
24.34 	appropriations.

25.1	Subd. 3.Veterans Health Care
 		57,635,000
		58,057,000
	
25.2 	The general fund appropriations made to the 
25.3 	department may be transferred to a veterans 
25.4 	homes special revenue account in the special 
25.5 	revenue fund in the same manner as other 
25.6 	receipts are deposited according to Minnesota 
25.7 	Statutes, section 198.34, and are appropriated 
25.8 	to the department for the operation of veterans 
25.9 	homes facilities and programs.
25.10 	No later than January 15, 2018, the 
25.11 	commissioner must submit a report to the 
25.12 	legislative committees with jurisdiction over 
25.13 	veterans affairs and state government finance 
25.14 	on reserve amounts maintained in the veterans 
25.15 	homes special revenue account. The report 
25.16 	must detail current and historical amounts 
25.17 	maintained as a reserve, and uses of those 
25.18 	amounts. The report must also include data on 
25.19 	the utilization of existing veterans homes, 
25.20 	including current and historical bed capacity 
25.21 	and usage, staffing levels and staff vacancy 
25.22 	rates, and staff-to-resident ratios.
25.23 	Maximize Federal Reimbursements. The 
25.24 	department will seek opportunities to 
25.25 	maximize federal reimbursements of 
25.26 	Medicare-eligible expenses and will provide 
25.27 	annual reports to the commissioner of 
25.28 	management and budget on the federal 
25.29 	Medicare reimbursements received. 
25.30 	Contingent upon future federal Medicare 
25.31 	receipts, reductions to the homes' general fund 
25.32 	appropriation may be made.

26.1 	Sec. 39. APPROPRIATION CANCELLATIONS.
 26.2 	All unspent funds estimated to be $7,166,000, as provided in Minnesota Statutes, section 
26.3 	240A.085, under Laws 2016, chapter 189, article 13, section 56, are canceled to the general 
26.4 	fund on June 30, 2017.

26.5 	Sec. 40. APPROPRIATION TRANSFERS.
 26.6 	A commissioner of an executive branch agency receiving appropriations within this 
26.7 	article may transfer appropriations for staff positions, salaries, and technology within the 
26.8 	agency as the commissioner considers necessary.

26.9 	Sec. 41. DATA COMPLAINTS; DEFICIENCY.
 26.10 	$34,000 in fiscal year 2017 is appropriated from the general fund for the cost of 
26.11 	considering complaints filed under Minnesota Statutes, section 211B.32, and for the cost 
26.12 	of considering data practices complaints filed under Minnesota Statutes, section 13.085.

26.13 	Sec. 42. SAVINGS FROM INSURANCE OPT OUT; APPROPRIATION 
26.14 	REDUCTION FOR EXECUTIVE AGENCIES.
 26.15 	The commissioner of management and budget must reduce general fund appropriations 
26.16 	to executive agencies, including constitutional offices, for agency operations for the biennium 
26.17 	ending June 30, 2019, by $4,012,000 due to savings from permitting employees to opt out 
26.18 	of insurance coverage under the state employee group insurance coverage.
26.19 	If savings obtained through permitting employees to opt out of insurance coverage under 
26.20 	the state employee group insurance coverage yield savings in nongeneral funds other than 
26.21 	those established in the state constitution or protected by federal law, the commissioner of 
26.22 	management and budget may transfer the amount of savings to the general fund. The amount 
26.23 	transferred to the general fund from other funds reduces the required general fund reduction 
26.24 	in this section. Reductions made in 2019 must be reflected as reductions in agency base 
26.25 	budgets for fiscal years 2020 and 2021. The commissioner of management and budget must 
26.26 	report to the chairs and ranking minority members of the committees in the senate Finance 
26.27 	Committee and the house of representatives Ways and Means Committee regarding the 
26.28 	amount of reductions in spending by each agency under this section.

26.29 	Sec. 43. BASE BUDGET REPORT.
 26.30 	No later than October 15, 2017, the commissioners of management and budget, revenue, 
26.31 	and veterans affairs must each submit a report to the chairs and ranking minority members 
27.1 	of the legislative committees with jurisdiction over state government finance that detail the 
27.2 	agency's base budget, by fiscal year. At a minimum, the report must include:
27.3 	(1) a description of each appropriation rider enacted for the agency, and the year the 
27.4 	rider was first enacted in a substantially similar form;
27.5 	(2) a description of the agency's use of appropriated funds that are not directed by a 
27.6 	rider, including an itemization of programs that appeared in a rider in a prior biennium and 
27.7 	continue to receive funding despite no longer appearing in a rider; and
27.8 	(3) an itemization of any appropriations provided to the agency under a provision of 
27.9 	statute or the state constitution.

27.10 	ARTICLE 2
27.11 	STATE GOVERNMENT OPERATIONS

27.12 	Section 1. Minnesota Statutes 2016, section 3.305, subdivision 1, is amended to read:
27.13 		Subdivision 1.Definitions. (a) "Legislative commission" means a joint commission, 
27.14 	committee, or other entity in the legislative branch composed exclusively of members of 
27.15 	the senate and the house of representatives.
27.16 	(b) "Joint offices" means the Revisor of Statutes, Legislative Reference Library, the 
27.17 	Office of Legislative Auditor, the Legislative Budget Office, and any other joint legislative 
27.18 	service office.

27.19 	EFFECTIVE DATE. This section is effective January 8, 2019.

27.20 	Sec. 2. Minnesota Statutes 2016, section 3.855, subdivision 2, is amended to read:
27.21 		Subd. 2.State employee negotiations. (a) The commissioner of management and budget 
27.22 	shall regularly advise the commission on the progress of collective bargaining activities 
27.23 	with state employees under the state Public Employment Labor Relations Act. During 
27.24 	negotiations, the commission may make recommendations to the commissioner as it deems 
27.25 	appropriate but no recommendation shall impose any obligation or grant any right or privilege 
27.26 	to the parties.
27.27 	(b) The commissioner shall submit to the chair of the commission any negotiated 
27.28 	collective bargaining agreements, arbitration awards, compensation plans, or salaries for 
27.29 	legislative approval or disapproval. Negotiated agreements shall be submitted within five 
27.30 	days of the date of approval by the commissioner or the date of approval by the affected 
27.31 	state employees, whichever occurs later. Arbitration awards shall be submitted within five 
28.1 	days of their receipt by the commissioner. If the commission disapproves a collective 
28.2 	bargaining agreement, award, compensation plan, or salary, the commission shall specify 
28.3 	in writing to the parties those portions with which it disagrees and its reasons. If the 
28.4 	commission approves a collective bargaining agreement, award, compensation plan, or 
28.5 	salary, it shall submit the matter to the legislature to be accepted or rejected under this 
28.6 	section.
28.7 	(c) When the legislature is not in session, the commission may give interim approval to 
28.8 	a negotiated collective bargaining agreement, salary, compensation plan, or arbitration 
28.9 	award. When the legislature is not in session, failure of the commission to disapprove a 
28.10 	collective bargaining agreement or arbitration award within 30 days constitutes approval.
28.11 	The commission shall submit the negotiated collective bargaining agreements, salaries, 
28.12 	compensation plans, or arbitration awards for which it has provided approval to the entire 
28.13 	legislature for ratification at a special legislative session called to consider them or at its 
28.14 	next regular legislative session as provided in this section. Approval or disapproval by the 
28.15 	commission is not binding on the legislature.
28.16 	(d) When the legislature is not in session, the proposed collective bargaining agreement, 
28.17 	arbitration decision, salary, or compensation plan must be implemented upon its approval 
28.18 	by the commission, and state employees covered by the proposed agreement or arbitration 
28.19 	decision do not have the right to strike while the interim approval is in effect. Wages and 
28.20 	economic fringe benefit increases provided for in the agreement or arbitration decision paid 
28.21 	in accordance with the interim approval by the commission are not affected, but the wages 
28.22 	or benefit increases must cease to be paid or provided effective upon the rejection of the 
28.23 	agreement, arbitration decision, salary, or compensation plan, or upon adjournment of the 
28.24 	legislature without acting on it.

28.25 	EFFECTIVE DATE. This section is effective January 8, 2019.

28.26 	Sec. 3. Minnesota Statutes 2016, section 3.8843, subdivision 7, is amended to read:
28.27 		Subd. 7.Expiration. This section expires June 30, 2017 2019.

28.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

28.29 	Sec. 4. [3.8853] LEGISLATIVE BUDGET OFFICE.
28.30 		Subdivision 1.Establishment; duties. The Legislative Budget Office is established 
28.31 	under control of the Legislative Coordinating Commission to provide the house of 
29.1 	representatives and senate with nonpartisan, accurate, and timely information on the fiscal 
29.2 	impact of proposed legislation, without regard to political factors.
29.3 		Subd. 2.Staff. The Legislative Coordinating Commission must appoint a director who 
29.4 	may hire staff necessary to do the work of the office. The director serves a term of six years 
29.5 	and may not be removed during a term except for cause.

29.6 	EFFECTIVE DATE. This section is effective January 8, 2019.

29.7 	Sec. 5. Minnesota Statutes 2016, section 3.971, subdivision 2, is amended to read:
29.8 		Subd. 2.Staff; compensation. (a) The legislative auditor shall establish a Financial 
29.9 	Audits Division and a Program Evaluation Division to fulfill the duties prescribed in this 
29.10 	section.
29.11 	(b) Each division may be supervised by a deputy auditor, appointed by the legislative 
29.12 	auditor, with the approval of the commission, for a term coterminous with the legislative 
29.13 	auditor's term. The deputy auditors may be removed before the expiration of their terms 
29.14 	only for cause. The legislative auditor and deputy auditors may each appoint a confidential 
29.15 	secretary to serve at pleasure. The salaries and benefits of the legislative auditor, deputy 
29.16 	auditors and confidential secretaries shall be determined by the compensation plan approved 
29.17 	by the Legislative Coordinating Commission. The deputy auditors may perform and exercise 
29.18 	the powers, duties and responsibilities imposed by law on the legislative auditor when 
29.19 	authorized by the legislative auditor.
29.20 	(c) The legislative auditor must appoint a fiscal oversight officer with duties that include 
29.21 	performing the review under section 3.972, subdivision 4.
29.22 	(d) The deputy auditors and the confidential secretaries serve in the unclassified civil 
29.23 	service, but the fiscal oversight officer and all other employees of the legislative auditor are 
29.24 	in the classified civil service. Compensation for employees of the legislative auditor in the 
29.25 	classified service shall be governed by a plan prepared by the legislative auditor and approved 
29.26 	by the Legislative Coordinating Commission and the legislature under section 3.855, 
29.27 	subdivision 3.
29.28 	(e) While in office, a person appointed deputy for the Financial Audit Division must 
29.29 	hold an active license as a certified public accountant.

29.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.1 	Sec. 6. Minnesota Statutes 2016, section 3.971, subdivision 6, is amended to read:
30.2 		Subd. 6.Financial audits. The legislative auditor shall audit the financial statements 
30.3 	of the state of Minnesota required by section 16A.50 and, as resources permit, Minnesota 
30.4 	State Colleges and Universities, the University of Minnesota, state agencies, departments, 
30.5 	boards, commissions, offices, courts, and other organizations subject to audit by the 
30.6 	legislative auditor, including, but not limited to, the State Agricultural Society, Agricultural 
30.7 	Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical Society, 
30.8 	ClearWay Minnesota, Minnesota Sports Facilities Authority, Metropolitan Council,
30.9 	Metropolitan Airports Commission, and Metropolitan Mosquito Control District. Financial 
30.10 	audits must be conducted according to generally accepted government auditing standards. 
30.11 	The legislative auditor shall see that all provisions of law respecting the appropriate and 
30.12 	economic use of public funds and other public resources are complied with and may, as 
30.13 	part of a financial audit or separately, investigate allegations of noncompliance.

30.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.15 	Sec. 7. Minnesota Statutes 2016, section 3.972, is amended by adding a subdivision to 
30.16 	read:
30.17 		Subd. 4.Certain transit financial activity reporting. (a) The legislative auditor must 
30.18 	perform a transit financial activity review of financial information for the Metropolitan 
30.19 	Council's Transportation Division and the joint powers board under section 297A.992. 
30.20 	Within 14 days of the end of each fiscal quarter, the legislative auditor must submit the 
30.21 	review to the Legislative Audit Commission and the chairs and ranking minority members 
30.22 	of the legislative committees with jurisdiction over transportation policy and finance, finance, 
30.23 	and ways and means.
30.24 	(b) At a minimum, each transit financial activity review must include:
30.25 	(1) a summary of monthly financial statements, including balance sheets and operating 
30.26 	statements, that shows income, expenditures, and fund balance;
30.27 	(2) a list of any obligations and agreements entered into related to transit purposes, 
30.28 	whether for capital or operating, including but not limited to bonds, notes, grants, and future 
30.29 	funding commitments;
30.30 	(3) the amount of funds in clause (2) that has been committed;
30.31 	(4) independent analysis by the fiscal oversight officer of the fiscal viability of revenues 
30.32 	and fund balance compared to expenditures, taking into account:
31.1 	(i) all expenditure commitments;
31.2 	(ii) cash flow;
31.3 	(iii) sufficiency of estimated funds; and
31.4 	(iv) financial solvency of anticipated transit projects; and
31.5 	(5) a notification concerning whether the requirements under paragraph (c) have been 
31.6 	met.
31.7 	(c) The Metropolitan Council and the joint powers board under section 297A.992 must 
31.8 	produce monthly financial statements as necessary for the review under paragraph (b), 
31.9 	clause (1), and provide timely information as requested by the legislative auditor.

31.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

31.11 	Sec. 8. Minnesota Statutes 2016, section 3.98, subdivision 1, is amended to read:
31.12 		Subdivision 1.Preparation; duties. (a) The head or chief administrative officer of each 
31.13 	department or agency of the state government, including the Supreme Court, shall cooperate 
31.14 	with the Legislative Budget Office and the Legislative Budget Office must prepare a fiscal 
31.15 	note at the request of the chair of the standing committee to which a bill has been referred, 
31.16 	or the chair of the house of representatives Ways and Means Committee, or the chair of the 
31.17 	senate Committee on Finance.
31.18 	(b) Upon request of the Legislative Budget Office, the head or chief administrative 
31.19 	officer of each department or agency of state government, including the Supreme Court, 
31.20 	must promptly supply all information necessary for the Legislative Budget Office to prepare 
31.21 	an accurate and timely fiscal note.
31.22 	(c) The Legislative Budget Office may adopt standards and guidelines governing timing 
31.23 	of responses to requests for information and governing access to data, consistent with laws 
31.24 	governing access to data. Agencies must comply with these standards and guidelines and 
31.25 	the Legislative Budget Office must publish them on the office's Web site.
31.26 	(d) For purposes of this subdivision, "Supreme Court" includes all agencies, committees, 
31.27 	and commissions supervised or appointed by the state Supreme Court or the state court 
31.28 	administrator.

31.29 	EFFECTIVE DATE. This section is effective January 8, 2019.

32.1 	Sec. 9. Minnesota Statutes 2016, section 3.98, subdivision 4, is amended to read:
32.2 		Subd. 4.Uniform procedure. The commissioner of management and budget Legislative 
32.3 	Budget Office shall prescribe a uniform procedure to govern the departments and agencies 
32.4 	of the state in complying with the requirements of this section.

32.5 	EFFECTIVE DATE. This section is effective January 8, 2019.

32.6 	Sec. 10. Minnesota Statutes 2016, section 3.987, subdivision 1, is amended to read:
32.7 		Subdivision 1.Local impact notes. The commissioner of management and budget
32.8 	Legislative Budget Office shall coordinate the development of a local impact note for any 
32.9 	proposed legislation introduced after June 30, 1997, upon request of the chair or the ranking 
32.10 	minority member of either legislative Tax, Finance, or Ways and Means Committee. Upon 
32.11 	receipt of a request to prepare a local impact note, the commissioner office must notify the 
32.12 	authors of the proposed legislation that the request has been made. The local impact note 
32.13 	must be made available to the public upon request. If the action is among the exceptions 
32.14 	listed in section 3.988, a local impact note need not be requested nor prepared. The 
32.15 	commissioner office shall make a reasonable and timely estimate of the local fiscal impact 
32.16 	on each type of political subdivision that would result from the proposed legislation. The 
32.17 	commissioner of management and budget office may require any political subdivision or 
32.18 	the commissioner of an administrative agency of the state to supply in a timely manner any 
32.19 	information determined to be necessary to determine local fiscal impact. The political 
32.20 	subdivision, its representative association, or commissioner shall convey the requested 
32.21 	information to the commissioner of management and budget office with a signed statement 
32.22 	to the effect that the information is accurate and complete to the best of its ability. The 
32.23 	political subdivision, its representative association, or commissioner, when requested, shall 
32.24 	update its determination of local fiscal impact based on actual cost or revenue figures, 
32.25 	improved estimates, or both. Upon completion of the note, the commissioner office must 
32.26 	provide a copy to the authors of the proposed legislation and to the chair and ranking minority 
32.27 	member of each committee to which the proposed legislation is referred.

32.28 	EFFECTIVE DATE. This section is effective January 8, 2019.

32.29 	Sec. 11. Minnesota Statutes 2016, section 6.481, subdivision 3, is amended to read:
32.30 		Subd. 3.CPA firm audit. A county audit performed by a CPA firm must meet the 
32.31 	standards and be in the a form required by the state auditor meeting recognized industry 
32.32 	auditing standards. The state auditor may require additional information from the CPA firm 
32.33 	if the state auditor determines that is in the public interest, but the state auditor must accept 
33.1 	the audit unless the state auditor determines it the audit or its form does not meet recognized 
33.2 	industry auditing standards or is not in the form required by the state auditor. The state 
33.3 	auditor may make additional examinations as the auditor determines to be in the public 
33.4 	interest.

33.5 	Sec. 12. Minnesota Statutes 2016, section 6.481, subdivision 6, is amended to read:
33.6 		Subd. 6.Payments to state auditor. A county audited by the state auditor must pay the 
33.7 	state auditor for the costs and expenses of the audit. If the state auditor makes additional 
33.8 	examinations of a county whose audit is performed by a CPA firm, the county must pay the 
33.9 	auditor for the cost of these examinations. Payments must be deposited in the state auditor 
33.10 	enterprisegeneral fund.

33.11 	Sec. 13. Minnesota Statutes 2016, section 6.56, subdivision 2, is amended to read:
33.12 		Subd. 2.Billings by state auditor. Upon the examination of the books, records, accounts, 
33.13 	and affairs of any political subdivision, as provided by law, such political subdivision shall 
33.14 	be liable to the state for the total cost and expenses of such examination, including the 
33.15 	salaries paid to the examiners while actually engaged in making such examination. The 
33.16 	state auditor may bill such political subdivision periodically for service rendered and the 
33.17 	officials responsible for approving and paying claims are authorized to pay said bill promptly. 
33.18 	Said payments shall be without prejudice to any defense against said claims that may exist 
33.19 	or be asserted. The state auditor enterprisegeneral fund shall be credited with all collections 
33.20 	made for any such examinations, including interest payments made pursuant to subdivision 
33.21 	3.

33.22 	Sec. 14. Minnesota Statutes 2016, section 6.581, subdivision 4, is amended to read:
33.23 		Subd. 4.Reports to legislature. At least 30 days before implementing increased charges 
33.24 	for examinations, the state auditor must report the proposed increases to the chairs and 
33.25 	ranking minority members of the committees in the house of representatives and the senate 
33.26 	with jurisdiction over the budget of the state auditor. By January 15 of each odd-numbered 
33.27 	year, the state auditor must report to the chairs and ranking minority members of the 
33.28 	legislative committees and divisions with primary jurisdiction over the budget of the state 
33.29 	auditor a summary of the state auditor enterprise fund anticipated revenues, and expenditures 
33.30 	related to examinations for the biennium ending June 30 of that year. The report must also 
33.31 	include for the biennium the number of full-time equivalents paid by the fund, by division, 
33.32 	employed by the Office of the State Auditor, any audit rate changes stated as a percentage, 
33.33 	the number of audit reports issued, and the number of counties audited.

34.1 	Sec. 15. [6.92] LITIGATION EXPENSES; LEGISLATIVE REPORT.
34.2 	The state auditor must report to the chairs and ranking minority members of the 
34.3 	committees in the house of representatives and the senate with jurisdiction over the Office 
34.4 	of the State Auditor by July 1, 2017, and January 1, 2018, and each January 1 thereafter, 
34.5 	on the state auditor's expenses in preparing or asserting a civil claim or appeal, or in defending 
34.6 	against a civil claim or appeal, related to the proper exercise of the auditor's constitutionally 
34.7 	authorized core functions. The report must list each lawsuit the state auditor has brought or 
34.8 	is defending, the grounds for each suit, the litigation expenses incurred since the previous 
34.9 	report under this section, and the projected expenses to complete the suit.

34.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

34.11 	Sec. 16. Minnesota Statutes 2016, section 15.0145, subdivision 5, is amended to read:
34.12 		Subd. 5.Executive director; staff. (a) The Legislative Coordinating Commission must 
34.13 	appoint an executive director for each council. The executive director must be experienced 
34.14 	in administrative activities and familiar with the challenges and needs of the ethnic council's 
34.15 	larger community. The executive director serves in the unclassified service at the pleasure 
34.16 	of the Legislative Coordinating Commission.
34.17 	(b) The Legislative Coordinating Commission must establish a process for recruiting 
34.18 	and selecting applicants for the executive director positions. This process must include 
34.19 	consultation and collaboration with the applicable council.
34.20 	(c) The executive director and applicable council members must work together in fulfilling 
34.21 	council duties. The executive director must consult with the commissioner of administration 
34.22 	to ensure appropriate financial, purchasing, human resources, and other services for operation 
34.23 	of the council.
34.24 	(d) Once appointed, each council is responsible for supervising the work of its director. 
34.25 	The council chair must report to the chair of the Legislative Coordinating Commission 
34.26 	regarding the performance of the executive director, including any recommendations 
34.27 	regarding disciplinary actions. The executive director must appoint and supervise the work 
34.28 	of other staff necessary to carry out the duties of the council. The executive director must 
34.29 	consult with the council chair prior to taking the following disciplinary actions with council 
34.30 	staff: written reprimand, suspension, demotion, or discharge. The executive director and 
34.31 	other council staff are executive branch employees.
34.32 	(e) The executive director must submit the council's biennial budget request to the 
34.33 	commissioner of management and budget as provided under chapter 16A.
35.1 	(f) The Legislative Coordinating Commission may delegate its responsibilities under 
35.2 	this section to a subcommittee or subgroup of the commission or the chair of the council.

35.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

35.4 	Sec. 17. [15.0395] INTERAGENCY AGREEMENTS AND INTRA-AGENCY 
35.5 	TRANSFERS.
35.6 	(a) By January 15, 2018, and annually thereafter, the head of each agency must provide 
35.7 	reports to the chairs and ranking minority members of the legislative committees with 
35.8 	jurisdiction over the department or agency's budget on:
35.9 	(1) interagency agreements or service-level agreements and any renewals or extensions 
35.10 	of existing interagency or service-level agreements with another agency if the cumulative 
35.11 	value of those agreements is more than $100,000 in a single fiscal year; and
35.12 	(2) transfers of appropriations between accounts within or between agencies, if the 
35.13 	cumulative value of the transfers is more than $100,000 in a single fiscal year.
35.14 	The report must include the statutory citation authorizing the agreement, transfer or dollar 
35.15 	amount, purpose, and effective date of the agreement, the duration of the agreement, and a 
35.16 	copy of the agreement.
35.17 	(b) As used in this section, "agency" includes the departments of the state listed in section 
35.18 	15.01, a multimember state agency in the executive branch described in section 15.012, 
35.19 	paragraph (a), the Office of MN.IT Services, and the Office of Higher Education.

35.20 	Sec. 18. Minnesota Statutes 2016, section 15A.083, subdivision 6a, is amended to read:
35.21 		Subd. 6a.Administrative law judge; salaries. The salary of the chief administrative 
35.22 	law judge is 98.52 percent of the salary of a chief district court judge. The salaries of the 
35.23 	assistant chief administrative law judge and administrative law judge supervisors are 93.60 
35.24 	percent of the salary of a chief district court judge. The salary of an administrative law judge 
35.25 	employed by the Office of Administrative Hearings is 88.67 98.52 percent of the salary of 
35.26 	a district court judge as set under section 15A.082, subdivision 3.

35.27 	Sec. 19. Minnesota Statutes 2016, section 15A.083, subdivision 7, is amended to read:
35.28 		Subd. 7.Workers' Compensation Court of Appeals and compensation judges.
 35.29 	Salaries of judges of the Workers' Compensation Court of Appeals are 98.52 percent of the 
35.30 	salary for district court judges. The salary of the chief judge of the Workers' Compensation 
35.31 	Court of Appeals is 98.52 percent of the salary for a chief district court judge. Salaries of 
36.1 	compensation judges are 88.67 98.52 percent of the salary of district court judges. The chief 
36.2 	workers' compensation judge at the Department of Labor and Industry may be paid an annual 
36.3 	salary that is up to five percent greater than the salary of workers' compensation settlement 
36.4 	judges at the Department of Labor and Industry.

36.5 	Sec. 20. Minnesota Statutes 2016, section 16A.90, is amended to read:
36.6 	16A.90 EMPLOYEE GAINSHARING SYSTEM.
36.7 		Subdivision 1.Commissioner must establish program. (a) The commissioner shall 
36.8 	establish a program to provide onetime bonus compensation to state employees for efforts 
36.9 	made to reduce the costs of operating state government or for ways of providing better or 
36.10 	more efficient state services. The commissioner may authorize an executive branch appointing 
36.11 	authority to make a onetime award to an employee or group of employees whose suggestion 
36.12 	or involvement in a project is determined by the commissioner to have resulted in documented 
36.13 	cost-savings to the state. Before authorizing awards under this section, the commissioner 
36.14 	shall establish guidelines for the program including but not limited to:
36.15 	(1) the maximum award is ten percent of the documented savings in the first fiscal year 
36.16 	in which the savings are realized up to $50,000;
36.17 	(2) the award must be paid from the appropriation to which the savings accrued; and
36.18 	(3) employees whose primary job responsibility is to identify cost savings or ways of 
36.19 	providing better or more efficient state services are generally not eligible for bonus 
36.20 	compensation under this section except in extraordinary circumstances as defined by the 
36.21 	commissioner.
36.22 	(b) The program required by this section must be in addition to any existing monetary 
36.23 	or nonmonetary performance-based recognition programs for state employees, including 
36.24 	achievement awards, continuous improvement awards, and general employee recognitions.
36.25 		Subd. 2.Biannual legislative report. No later than August 1, 2017, and biannually 
36.26 	thereafter, the commissioner must report to the chairs and ranking minority members of the 
36.27 	house of representatives and senate committees with jurisdiction over Minnesota Management 
36.28 	and Budget on the status of the program required by this section. The report must detail:
36.29 	(1) the specific program guidelines established by the commissioner as required by 
36.30 	subdivision 1, if the guidelines have not been described in a previous report;
36.31 	(2) any proposed modifications to the established guidelines under consideration by the 
36.32 	commissioner, including the reason for the proposed modifications;
37.1 	(3) the methods used by the commissioner to promote the program to state employees, 
37.2 	if the methods have not been described in a previous report;
37.3 	(4) a summary of the results of the program that includes the following, categorized by 
37.4 	agency:
37.5 	(i) the number of state employees whose suggestions or involvement in a project were 
37.6 	considered for possible bonus compensation, and a description of each suggestion or project 
37.7 	that was considered;
37.8 	(ii) the total amount of bonus compensation actually awarded, itemized by each suggestion 
37.9 	or project that resulted in an award and the amount awarded for that suggestion or project; 
37.10 	and
37.11 	(iii) the total amount of documented cost-savings that accrued to the agency as a result 
37.12 	of each suggestion or project for which bonus compensation was granted; and
37.13 	(5) any recommendations for legislation that, in the judgment of the commissioner, 
37.14 	would improve the effectiveness of the bonus compensation program established by this 
37.15 	section or which would otherwise increase opportunities for state employees to actively 
37.16 	participate in the development and implementation of strategies for reducing the costs of 
37.17 	operating state government or for providing better or more efficient state services.

37.18 	Sec. 21. Minnesota Statutes 2016, section 16B.055, subdivision 1, is amended to read:
37.19 		Subdivision 1.Federal Assistive Technology Act. (a) The Department of Administration 
37.20 	is designated as the lead agency to carry out all the responsibilities under the Assistive 
37.21 	Technology Act of 1998, as provided by Public Law 108-364, as amended. The Minnesota 
37.22 	Assistive Technology Advisory Council is established to fulfill the responsibilities required 
37.23 	by the Assistive Technology Act, as provided by Public Law 108-364, as amended. Because 
37.24 	the existence of this council is required by federal law, this council does not expire.
37.25 	(b) Except as provided in paragraph (c), the governor shall appoint the membership of 
37.26 	the council as required by the Assistive Technology Act of 1998, as provided by Public 
37.27 	Law 108-364, as amended. After the governor has completed the appointments required by 
37.28 	this subdivision, the commissioner of administration, or the commissioner's designee, shall 
37.29 	convene the first meeting of the council following the appointments. Members shall serve 
37.30 	two-year terms commencing July 1 of each odd-numbered year, and receive the compensation 
37.31 	specified by the Assistive Technology Act of 1998, as provided by Public Law 108-364, as 
37.32 	amended. The members of the council shall select their chair at the first meeting following 
37.33 	their appointment.
38.1 	(c) After consulting with the appropriate commissioner, the commissioner of 
38.2 	administration shall appoint a representative from:
38.3 	(1) State Services for the Blind who has assistive technology expertise;
38.4 	(2) vocational rehabilitation services who has assistive technology expertise;
38.5 	(3) the Workforce Development Council; and
38.6 	(4) the Department of Education who has assistive technology expertise.

38.7 	Sec. 22. Minnesota Statutes 2016, section 16B.2405, is amended to read:
38.8 	16B.2405 CAPITOL BUILDING POWERS AND DUTIES.
38.9 		Subdivision 1.Duties. The commissioner, upon receipt of funding for these purposes, 
38.10 	shall:
38.11 	(1) maintain and operate the Capitol building and grounds according to section 16B.24
38.12 	and other applicable law;
38.13 	(2) designate a project manager to oversee and manage predesign, design, and construction 
38.14 	contracts and funding for all modifications to the Capitol building;
38.15 	(3) manage design and construction projects and funding for the Capitol building 
38.16 	according to section 16B.31 and other applicable law;
38.17 	(4) lease space in the Capitol building, as provided in section 16B.24, to state agencies, 
38.18 	constitutional officers, and the court administrator on behalf of the judicial branch and 
38.19 	allocate space in the Capitol building to the legislative branch as determined by the 
38.20 	commission;
38.21 	(5) provide information about the Capitol building to the commission, legislative bodies, 
38.22 	and others as needed regarding maintenance, operation, leasing, condition assessments, 
38.23 	design, and construction projects; and
38.24 	(6) assist the State Capitol Preservation Commission with performance of its duties as 
38.25 	needed.
38.26 		Subd. 2.Capitol event fees; appropriation. The commissioner may collect charges or 
38.27 	fees from users holding events in the Capitol building. Money collected by the commissioner 
38.28 	under this subdivision shall be deposited in the general fund. The commissioner shall report 
38.29 	annually by August 1 on the events held in the Capitol building, the amounts collected for 
38.30 	those events, and the costs for operating events, to the chairs and ranking minority members 
39.1 	of the committees in the house of representatives and the senate with jurisdiction over 
39.2 	finance and policy relating to the commissioner of administration.

39.3 	Sec. 23. Minnesota Statutes 2016, section 16B.4805, subdivision 2, is amended to read:
39.4 		Subd. 2.Reimbursement for making reasonable accommodation. The commissioner 
39.5 	of administration shall reimburse state agencies for up to 50 percent of the cost of expenses 
39.6 	incurred in making reasonable accommodations eligible for reimbursement for agency 
39.7 	employees and applicants for employment to the extent that funds are available in the 
39.8 	accommodation account established under subdivision 3 for this purpose.

39.9 	Sec. 24. [16B.991] TERMINATION OF GRANT.
39.10 	Each grant agreement subject to sections 16B.97 and 16B.98 must provide that the 
39.11 	agreement will immediately be terminated if the recipient is convicted of a criminal offense 
39.12 	relating to a state grant agreement.

39.13 	Sec. 25. Minnesota Statutes 2016, section 16E.0466, is amended to read:
39.14 	16E.0466 STATE AGENCY TECHNOLOGY PROJECTS.
39.15 		Subdivision 1.Consultation required. (a) Every state agency with an information or 
39.16 	telecommunications project must consult with the Office of MN.IT Services to determine 
39.17 	the information technology cost of the project. Upon agreement between the commissioner 
39.18 	of a particular agency and the chief information officer, the agency must transfer the 
39.19 	information technology cost portion of the project to the Office of MN.IT Services. Service 
39.20 	level agreements must document all project-related transfers under this section. Those 
39.21 	agencies specified in section 16E.016, paragraph (d), are exempt from the requirements of 
39.22 	this section.
39.23 	(b) Notwithstanding section 16A.28, subdivision 3, any unexpended operating balance 
39.24 	appropriated to a state agency may be transferred to the information and telecommunications 
39.25 	technology systems and services account for the information technology cost of a specific 
39.26 	project, subject to the review of the Legislative Advisory Commission, under section 16E.21, 
39.27 	subdivision 3.
39.28 		Subd. 2.Legislative report. No later than October 1, 2017, and annually thereafter, the 
39.29 	state chief information officer must submit a comprehensive project portfolio report to the 
39.30 	chairs and ranking minority members of the house of representatives and senate committees 
39.31 	with jurisdiction over state government finance on projects requiring consultation under 
39.32 	subdivision 1. The report must itemize:
40.1 	(1) each project presented to the office for consultation in the time since the last report;
40.2 	(2) the information technology cost associated with the project, including the information 
40.3 	technology cost as a percentage of the project's complete budget;
40.4 	(3) the status of the information technology components of the project's development;
40.5 	(4) the date the information technology components of the project are expected to be 
40.6 	completed; and
40.7 	(5) the projected costs for ongoing support and maintenance of the information technology 
40.8 	components after the project is complete.

40.9 	Sec. 26. Minnesota Statutes 2016, section 43A.17, subdivision 11, is amended to read:
40.10 		Subd. 11.Severance pay for certain employees. (a) For purposes of this subdivision, 
40.11 	"highly compensated employee" means an employee of the state whose estimated annual 
40.12 	compensation is greater than 60 percent of the governor's annual salary, and who is not 
40.13 	covered by a collective bargaining agreement negotiated under chapter 179A or a 
40.14 	compensation plan authorized under section 43A.18, subdivision 3a.
40.15 	(b) Severance pay for a highly compensated employee includes benefits or compensation 
40.16 	with a quantifiable monetary value, that are provided for an employee upon termination of 
40.17 	employment and are not part of the employee's annual wages and benefits and are not 
40.18 	specifically excluded by this subdivision. Severance pay does not include payments for 
40.19 	accumulated vacation, accumulated sick leave, and accumulated sick leave liquidated to 
40.20 	cover the cost of group term insurance. Severance pay for a highly compensated employee 
40.21 	does not include payments of periodic contributions by an employer toward premiums for 
40.22 	group insurance policies. The severance pay for a highly compensated employee must be 
40.23 	excluded from retirement deductions and from any calculations of retirement benefits. 
40.24 	Severance pay for a highly compensated employee must be paid in a manner mutually 
40.25 	agreeable to the employee and the employee's appointing authority over a period not to 
40.26 	exceed five years from retirement or termination of employment. If a retired or terminated 
40.27 	employee dies before all or a portion of the severance pay has been disbursed, the balance 
40.28 	due must be paid to a named beneficiary or, lacking one, to the deceased's estate. Except 
40.29 	as provided in paragraph (c), severance pay provided for a highly compensated employee 
40.30 	leaving employment may not exceed an amount equivalent to six months of pay the lesser 
40.31 	of:
40.32 	(1) six months pay; or
41.1 	(2) the highly compensated employee's regular rate of pay multiplied by 35 percent of 
41.2 	the highly compensated employee's accumulated but unused sick leave hours.
41.3 	(c) Severance pay for a highly compensated employee may exceed an amount equivalent 
41.4 	to six months of pay the limit prescribed in paragraph (b) if the severance pay is part of an 
41.5 	early retirement incentive offer approved by the state and the same early retirement incentive 
41.6 	offer is also made available to all other employees of the appointing authority who meet 
41.7 	generally defined criteria relative to age or length of service.
41.8 	(d) An appointing authority may make severance payments to a highly compensated 
41.9 	employee, up to the limits prescribed in this subdivision, only if doing so is authorized by 
41.10 	a compensation plan under section 43A.18 that governs the employee, provided that the 
41.11 	following highly compensated employees are not eligible for severance pay:
41.12 	(1) a commissioner, deputy commissioner, or assistant commissioner of any state 
41.13 	department or agency as listed in section 15.01 or 15.06, including the state chief information 
41.14 	officer; and
41.15 	(2) any unclassified employee who is also a public official, as defined in section 10A.01, 
41.16 	subdivision 35.
41.17 	(e) Severance pay shall not be paid to a highly compensated employee who has been 
41.18 	employed by the appointing authority for less than six months or who voluntarily terminates 
41.19 	employment.

41.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

41.21 	Sec. 27. Minnesota Statutes 2016, section 43A.24, is amended by adding a subdivision to 
41.22 	read:
41.23 		Subd. 1a.Opt out. (a) An individual eligible for state-paid hospital, medical, and dental 
41.24 	benefits under this section has the right to decline those benefits, provided the individual 
41.25 	declining the benefits can prove health insurance coverage from another source. Any 
41.26 	individual declining benefits must do so in writing, signed and dated, on a form provided 
41.27 	by the commissioner.
41.28 	(b) The commissioner must create, and make available in hard copy and online a form 
41.29 	for individuals to use in declining state-paid hospital, medical, and dental benefits. The form 
41.30 	must, at a minimum, include notice to the declining individual of the next available 
41.31 	opportunity and procedure to re-enroll in the benefits.
42.1 	(c) No later than January 15 of each year, the commissioner of management and budget 
42.2 	must provide a report to the chairs and ranking minority members of the legislative 
42.3 	committees with jurisdiction over state government finance on the number of employees 
42.4 	choosing to opt-out of state employee group insurance coverage under this section. The 
42.5 	report must provide itemized statistics, by agency, and include the total amount of savings 
42.6 	accrued to each agency resulting from the opt-outs.

42.7 	Sec. 28. [118A.09] ADDITIONAL LONG-TERM EQUITY INVESTMENT 
42.8 	AUTHORITY.
42.9 		Subdivision 1.Definition; qualifying government. "Qualifying government" means:
42.10 	(1) a county or statutory or home rule charter city with a population of more than 100,000;
42.11 	(2) a county or statutory or home rule charter city which had its most recently issued 
42.12 	general obligation bonds rated in the highest category by a national bond rating agency; or
42.13 	(3) a self-insurance pool listed in section 471.982, subdivision 3.
42.14 	A county or statutory or home rule charter city with a population of 100,000 or less that is 
42.15 	a qualifying government, but is subsequently rated less than the highest category by a 
42.16 	national bond rating agency on a general obligation bond issue, may not invest additional 
42.17 	funds under this section but may continue to manage funds previously invested under 
42.18 	subdivision 2.
42.19 		Subd. 2.Additional investment authority. Qualifying governments may invest the 
42.20 	amount described in subdivision 3:
42.21 	(1) in index mutual funds based in the United States and indexed to a broad market 
42.22 	United States equity index; or
42.23 	(2) with the Minnesota State Board of Investment subject to such terms and minimum 
42.24 	amounts as may be adopted by the board. Index mutual fund investments must be made 
42.25 	directly with the main sales office of the fund.
42.26 		Subd. 3.Funds. (a) Qualifying governments may only invest under subdivision 2 
42.27 	according to the limitations in this subdivision. A qualifying government under subdivision 
42.28 	1, clause (1) or (2), may only invest its funds that are held for long-term capital plans 
42.29 	authorized by the city council or county board, or long-term obligations of the qualifying 
42.30 	government. Long-term obligations of the qualifying government include long-term capital 
42.31 	plan reserves, funds held to offset long-term environmental exposure, other postemployment 
43.1 	benefit liabilities, compensated absences, and other long-term obligations established by 
43.2 	applicable accounting standards.
43.3 	(b) Qualifying governments under subdivision 1, clause (1) or (2), may invest up to 15 
43.4 	percent of the sum of:
43.5 	(1) unassigned cash;
43.6 	(2) cash equivalents;
43.7 	(3) deposits; and
43.8 	(4) investments.
43.9 	This calculation must be based on the qualifying government's most recent audited statement 
43.10 	of net position, which must be compliant and audited pursuant to governmental accounting 
43.11 	and auditing standards. Once the amount invested reaches 15 percent of the sum of 
43.12 	unassigned cash, cash equivalents, deposits, and investments, no further funds may be 
43.13 	invested under this section; however, a qualifying government may continue to manage the 
43.14 	funds previously invested under this section even if the total amount subsequently exceeds 
43.15 	15 percent of the sum of unassigned cash, cash equivalents, deposits, and investments.
43.16 	(c) A qualified government under subdivision 1, clause (3), may invest up to the lesser 
43.17 	of:
43.18 	(1) 15 percent of the sum of its cash, cash equivalents, deposits, and investments; or
43.19 	(2) 25 percent of its net assets as reported on the pool's most recent audited statement 
43.20 	of net position, which must be compliant and audited pursuant to governmental accounting 
43.21 	and auditing standards.
43.22 		Subd. 4.Approval. Before investing pursuant to this section, the governing body of the 
43.23 	qualifying government must adopt a resolution that includes the following statements:
43.24 	(1) the governing body understands that investments under subdivision 2 have a risk of 
43.25 	loss;
43.26 	(2) the governing body understands the type of funds that are being invested and the 
43.27 	specific investment itself; and
43.28 	(3) the governing body certifies that all funds designated for investment through the 
43.29 	State Board of Investment meet the requirements of this section and the policies and 
43.30 	procedures established by the State Board of Investment.
44.1 		Subd. 5.Public Employees Retirement Association to act as account administrator.
 44.2 	A qualifying government exercising authority under this section to invest amounts with the 
44.3 	State Board of Investment shall establish an account with the Public Employees Retirement 
44.4 	Association (PERA), which shall act as the account administrator.
44.5 		Subd. 6.Purpose of account. The account established under subdivision 5 may only 
44.6 	be used for the purposes provided under subdivision 3. PERA may rely on representations 
44.7 	made by the qualifying government in exercising its duties as account administrator and 
44.8 	has no duty to further verify qualifications, use, or intended use of the funds that are invested 
44.9 	or withdrawn.
44.10 		Subd. 7.Account maintenance. (a) A qualifying government may establish an account 
44.11 	to be held under the supervision of PERA for the purposes of investing funds with the State 
44.12 	Board of Investment under subdivision 2. PERA shall establish a separate account for each 
44.13 	qualifying government. PERA may charge participating qualifying governments a fee for 
44.14 	reasonable administrative costs. The amount of any fee charged by PERA is annually 
44.15 	appropriated to the association from the account. PERA may establish other reasonable 
44.16 	terms and conditions for creation and maintenance of these accounts.
44.17 	(b) PERA must report to the qualifying government on the investment returns of invested 
44.18 	funds and on all investment fees or costs incurred by the account.
44.19 		Subd. 8.Investment. (a) The assets of an account shall be invested and held as required 
44.20 	by this subdivision.
44.21 	(b) PERA must certify all money in the accounts for which it is account administrator 
44.22 	to the State Board of Investment for investment under section 11A.14, subject to the policies 
44.23 	and procedures established by the State Board of Investment. Investment earnings must be 
44.24 	credited to the account of the individual qualifying government.
44.25 	(c) For accounts invested by the State Board of Investment, the investment restrictions 
44.26 	shall be the same as those generally applicable to the State Board of Investment.
44.27 	(d) A qualifying government may provide investment direction to PERA, subject to the 
44.28 	policies and procedures established by the State Board of Investment.
44.29 		Subd. 9.Withdrawal of funds and termination of account. (a) A government may 
44.30 	withdraw some or all of its money or terminate the account.
44.31 	(b) A government requesting withdrawal of money from an account created under this 
44.32 	section must do so at a time and in the manner required by the executive director of PERA, 
44.33 	subject to the policies and procedures established by the State Board of Investment.

45.1 	Sec. 29. [134A.17] TRANSFERS TO COUNTY.
45.2 	If the Sherburne County law library, through its trustees, has a fiscal reserve that is 
45.3 	projected to sustain its operations for a period of over five years, the Sherburne County law 
45.4 	library may transfer up to half of the money in its fiscal reserve, but not to exceed $200,000, 
45.5 	to Sherburne County to defray costs of constructing a new building to house the law library 
45.6 	and courts.

45.7 	Sec. 30. Minnesota Statutes 2016, section 138.081, is amended to read:
45.8 	138.081 FEDERAL FUNDS, ACTS.
45.9 		Subdivision 1.Executive Council Department of Administration as agency to accept 
45.10 	federal funds. The Executive Council of the Minnesota Historical Society Department of 
45.11 	Administration is hereby designated the state agency with power to accept any and all money 
45.12 	provided for or made available to this state by the United States of America or any department 
45.13 	or agency thereof for surveys, restoration, construction, equipping, or other purposes relating 
45.14 	to the state historic sites program in accordance with the provisions of federal law and any 
45.15 	rules or regulations promulgated thereunder and are further authorized to do any and all 
45.16 	things required of this state by such federal law and the rules and regulations promulgated 
45.17 	thereunder in order to obtain such federal money.
45.18 		Subd. 2.Director's Commissioner's responsibilities. The director of the Minnesota 
45.19 	Historical Society, as state historic preservation officer, commissioner shall be responsible 
45.20 	for the preparation, implementation and administration of the State Historic Preservation 
45.21 	Plan and shall administer the State Historic Preservation Program authorized by the National 
45.22 	Historic Preservation Act (United States Code, title 16, section 470 et seq. as amended). 
45.23 	The director of the Minnesota Historical Society commissioner shall review and approve 
45.24 	in writing all grants-in-aid for architectural, archaeological and historic preservation made 
45.25 	by state agencies and funded by the state or a combination of state and federal funds in 
45.26 	accordance with the State Historic Preservation Program.
45.27 		Subd. 3.Administration of federal act. The Minnesota Historical Society Department 
45.28 	of Administration is designated as the state agency to administer the provisions of the federal 
45.29 	act providing for the preservation of historical and archaeological data, United States Code, 
45.30 	title 16, sections 469 to 469C, insofar as the provisions of the act provide for implementation 
45.31 	by the state.

45.32 	EFFECTIVE DATE. This section is effective March 1, 2018.

46.1 	Sec. 31. Minnesota Statutes 2016, section 138.69, is amended to read:
46.2 	138.69 PUBLIC AREAS OF THE CAPITOL.
46.3 	The Minnesota State Historical Society is designated the research agency and is 
46.4 	responsible for the interpretation of the public areas for visitors to the Capitol. This involves 
46.5 	conducting or approving public programs and tours in the Capitol and State Office Building, 
46.6 	including exhibits held in the Capitol, providing informational services, acting as advisor
46.7 	adviser on preservation, recommending appropriate custodial policies, and maintaining and 
46.8 	repairing all works of art. Notwithstanding section 138.668, the society may not charge a 
46.9 	fee for general tours at the Capitol but may charge fees for special programs other than 
46.10 	general tours.

46.11 	Sec. 32. Minnesota Statutes 2016, section 155A.30, subdivision 5, is amended to read:
46.12 		Subd. 5.Conditions precedent to issuance. A license must not be issued unless the 
46.13 	board first determines that the applicant has met the requirements in clauses (1) to (8) (9):
46.14 	(1) the applicant must have a sound financial condition with sufficient resources available 
46.15 	to meet the school's financial obligations; to refund all tuition and other charges, within a 
46.16 	reasonable period of time, in the event of dissolution of the school or in the event of any 
46.17 	justifiable claims for refund against the school; to provide adequate service to its students 
46.18 	and prospective students; and to maintain proper use and support of the school;
46.19 	(2) the applicant must have satisfactory training facilities with sufficient tools and 
46.20 	equipment and the necessary number of work stations to adequately train the students 
46.21 	currently enrolled, and those proposed to be enrolled;
46.22 	(3) the applicant must employ a sufficient number of qualified instructors trained by 
46.23 	experience and education to give the training contemplated;
46.24 	(4) the premises and conditions under which the students work and study must be sanitary, 
46.25 	healthful, and safe according to modern standards;
46.26 	(5) each occupational course or program of instruction or study must be of such quality 
46.27 	and content as to provide education and training that will adequately prepare enrolled 
46.28 	students for testing, licensing, and entry level positions as a cosmetologist, esthetician, or 
46.29 	nail technician;
46.30 	(6) the school must have coverage by professional liability insurance of at least $25,000 
46.31 	per incident and an accumulation of $150,000 for each premium year;
46.32 	(7) the applicant shall provide evidence of the school's compliance with section 176.182;
47.1 	(8) the applicant, except the state and its political subdivisions as described in section 
47.2 	471.617 13.02, subdivision 1 11, shall must file with the board a continuous corporate surety 
47.3 	bond in the amount of no less than ten percent of the preceding year's gross income from 
47.4 	student tuition, fees, and other required institutional charges, but in no event less than 
47.5 	$10,000, conditioned upon the faithful performance of all contracts and agreements with 
47.6 	students made by the applicant. New schools must base the bond amount on the anticipated 
47.7 	gross income from student tuition, fees, and other required institutional charges for the third 
47.8 	year of operation, but in no event less than $10,000. The applicant must compute the amount 
47.9 	of the surety bond and verify that the amount of the surety bond complies with this 
47.10 	subdivision. The bond shall run to the state of Minnesota board and to any person who may 
47.11 	have a cause of action against the applicant arising at any time after the bond is filed and 
47.12 	before it is canceled for breach of any contract or agreement made by the applicant with 
47.13 	any student. The aggregate liability of the surety for all breaches of the conditions of the 
47.14 	bond shall not exceed $10,000. The surety of the bond may cancel it upon giving 60 days' 
47.15 	notice in writing to the board and shall be relieved of liability for any breach of condition 
47.16 	occurring after the effective date of cancellation; and
47.17 	(9) the applicant must, at all times during the term of the license, employ appoint a 
47.18 	designated licensed school manager who maintains a cosmetology salon manager license.

47.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

47.20 	Sec. 33. Minnesota Statutes 2016, section 270.44, is amended to read:
47.21 	270.44 CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.
47.22 	The board shall charge the following fees:
47.23 	(1) $105 $150 for a senior accredited Minnesota assessor license;
47.24 	(2) $80 $125 for an accredited Minnesota assessor license;
47.25 	(3) $65 $95 for a certified Minnesota assessor specialist license;
47.26 	(4) $55 $85 for a certified Minnesota assessor license;
47.27 	(5) $35 $85 for a temporary license;
47.28 	(6) $50 for a trainee registration;
47.29 	(7) $80 for grading a form appraisal;
47.30 	(6) $60 (8) $140 for grading a narrative appraisal;
47.31 	(7) $30 (9) $50 for a reinstatement fee; and
48.1 	(8) $25 (10) $20 for a record retention fee; and
48.2 	(9) $20 for an educational transcript.

48.3 	EFFECTIVE DATE. This section is effective beginning with licenses issued after June 
48.4 	30, 2018.

48.5 	Sec. 34. Minnesota Statutes 2016, section 270.45, is amended to read:
48.6 	270.45 DISPOSITION OF FEES AND FINES.
48.7 	All fees and fines so established and collected shallunder section 270.44 must be paid 
48.8 	to the commissioner of management and budget for deposit deposited in the general a 
48.9 	dedicated account within the special revenue fund. The expenses of carrying Fees collected 
48.10 	under this section are appropriated to the Department of Revenue to carry out the provisions 
48.11 	of sections 270.41 to 270.50shall be paid from appropriations made to the board.

48.12 	EFFECTIVE DATE. This section is effective July 1, 2017.

48.13 	Sec. 35. [270.455] REFUNDS OF FEES.
48.14 	When the board determines that a fee or any part of a fee was erroneously paid to the 
48.15 	board, the board may refund or credit the amount of fees that was paid in error. These refunds 
48.16 	or credits shall be paid out of the dedicated account within the special revenue fund where 
48.17 	the fees were originally deposited.

48.18 	EFFECTIVE DATE. This section is effective July 1, 2017.

48.19 	Sec. 36. Minnesota Statutes 2016, section 349A.08, subdivision 2, is amended to read:
48.20 		Subd. 2.Prizes not assignable. A prize in the state lottery is not assignable except as 
48.21 	provided in subdivision 3 and except that:
48.22 	(1) if a prize winner dies before the prize is paid, the director shall pay the prize to the 
48.23 	prize winner's estate; and
48.24 	(2) the director may pay a prize to a person other than the winner of that prize under an 
48.25 	appropriate court order.

48.26 	Sec. 37. Minnesota Statutes 2016, section 349A.10, subdivision 6, is amended to read:
48.27 		Subd. 6.Budget; plans. (a) The director shall prepare and submit a biennial budget plan 
48.28 	to the commissioner of management and budget. The governor shall recommend the 
48.29 	maximum amount available for the lottery in the budget the governor submits to the 
49.1 	legislature under section 16A.11. The maximum amount available to the lottery for operating 
49.2 	expenses and capital expenditures shall be determined by law. In addition, the director shall 
49.3 	appear at least once each fiscal year before the senate and house of representatives committees 
49.4 	having jurisdiction over gambling policy to present and explain the lottery's plans for future 
49.5 	games and the related advertising and promotions and spending plans for the next fiscal 
49.6 	year.
49.7 	(b) For purposes of this section, operating expenses shall not include:
49.8 	(1) expenses that are a direct function of lottery sales, which include the cost of lottery 
49.9 	prizes, amounts paid to lottery retailers as sales commissions or other compensation, amounts 
49.10 	paid to produce and deliver scratch lottery games, and amounts paid to an outside vendor 
49.11 	to operate and maintain an online gaming system. In addition, the director shall appear at 
49.12 	least once each fiscal year before the senate and house of representatives committees having 
49.13 	jurisdiction over gambling policy to present and explain the lottery's plans for future games 
49.14 	and the related advertising and promotions and spending plans for the next fiscal year.; and
49.15 	(2) expenses related solely to the noncash year-end adjustment required for government 
49.16 	agencies to adjust the net actuarially determined pension liability which includes deferred 
49.17 	inflows, deferred outflows, noncash pension expense, unrestricted net deficit, and net pension 
49.18 	liability, in accordance with Statement 68 of the Governmental Accounting Standards Board.

49.19 	Sec. 38. Minnesota Statutes 2016, section 352D.06, subdivision 1, is amended to read:
49.20 		Subdivision 1.Annuity; reserves. (a) When a participant attains at least age 55, 
49.21 	terminates from covered service, and applies for a retirement annuity, the cash value of the 
49.22 	participant's shares must be transferred to the general state employees retirement fund and 
49.23 	must be used to provide an annuity for the retired employeeparticipant based upon the 
49.24 	participant's age when the benefit begins to accrue according to the reserve basis used by 
49.25 	the general state employees retirement plan in determining pensions and reserves.
49.26 	(b) Except for participants described in paragraph (c), the monthly amount of the annuity 
49.27 	must be determined using the actuarial assumptions in effect for the general state employees 
49.28 	retirement plan under section 356.215 on the accrual date.
49.29 	(c) For any participant who retires on or after July 1, 2017, and before July 1, 2020, 
49.30 	when the participant is at least age 63 or has had at least 26 years of covered service, the 
49.31 	monthly amount of the annuity must be determined using the actuarial assumptions in effect 
49.32 	for the general state employees retirement plan under section 356.215 on June 30, 2016.
50.1 		Subd. 1a.Postretirement adjustments. The annuity under this subdivision 1 is eligible 
50.2 	for postretirement adjustments under section 356.415.

50.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

50.4 	Sec. 39. Minnesota Statutes 2016, section 353.27, subdivision 3c, is amended to read:
50.5 		Subd. 3c.Former MERF members; member and employer contributions. (a) For 
50.6 	the period July 1, 2015, through December 31, 2031, the member contributions for former 
50.7 	members of the Minneapolis Employees Retirement Fund and by the former Minneapolis 
50.8 	Employees Retirement Fund-covered employing units are governed by this subdivision.
50.9 	(b) The member contribution for a public employee who was a member of the former 
50.10 	Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of 
50.11 	the employee.
50.12 	(c) The employer regular contribution with respect to a public employee who was a 
50.13 	member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 
50.14 	percent of the salary of the employee.
50.15 	(d) For calendar years 2015 and 2016, The annual employer supplemental contribution 
50.16 	is the employing unit's share of $31,000,000. For calendar years 2017 through 2031 and 
50.17 	2018, the employer supplemental contribution is the employing unit's share of $21,000,000.
50.18 	(e) Each employing unit's share under paragraph (d) is the amount determined from an 
50.19 	allocation between each employing unit in the portion equal to the unit's employer 
50.20 	supplemental contribution paid or payable under Minnesota Statutes 2012, section 353.50, 
50.21 	during calendar year 2014.
50.22 	(f) The employer supplemental contribution amount under paragraph (d) for calendar 
50.23 	year 2015 must be invoiced by the executive director of the Public Employees Retirement 
50.24 	Association by July 1, 2015. The calendar year 2015 payment is payable in a single amount 
50.25 	on or before September 30, 2015. For subsequent calendar years, the employer supplemental 
50.26 	contribution under paragraph (d) must be invoiced on January 31 of each year and is payable 
50.27 	in two parts, with the first half payable on or before July 31 and with the second half payable 
50.28 	on or before December 15. Late payments are payable with compound interest at the rate 
50.29 	of 0.71 percent per month for each month or portion of a month that has elapsed after the 
50.30 	due date.
50.31 	(g) The employer supplemental contribution under paragraph (d) terminates on December 
50.32 	31, 2031.

51.1 	Sec. 40. Minnesota Statutes 2016, section 353.505, is amended to read:
51.2 	353.505 STATE CONTRIBUTIONS; FORMER MERF DIVISION.
51.3 	(a) On September 15, 2015, and September 15, 2016 2019, and annually thereafter, the 
51.4 	state shall pay to the general employees retirement plan of the Public Employees Retirement 
51.5 	Association, with respect to the former MERF division, $6,000,000. By September 15 of 
51.6 	each year after 2016,
51.7 	(b) On September 15, 2017, and September 15, 2018, the state shall pay to the general 
51.8 	employees retirement plan of the Public Employees Retirement Association, with respect 
51.9 	to the former MERF division, $16,000,000.
51.10 	(b) (c) State contributions under this section end on September 15, 2031.

51.11 	Sec. 41. Minnesota Statutes 2016, section 508.12, subdivision 1, is amended to read:
51.12 		Subdivision 1.Examiner and deputy examiner. The judges of the district court shall 
51.13 	appoint a competent attorney in each county within their respective districts to be an examiner 
51.14 	of titles and legal adviser to the registrar in said county, to which examiner all applications 
51.15 	to register title to land are referred without further order, and may appoint attorneys to serve 
51.16 	as deputy examiners who shall act in the name of the examiner and under the examiner's 
51.17 	supervision and control, and the deputy's acts shall be the acts of the examiners. The examiner 
51.18 	of titles and deputy examiners shall hold office subject to the will and discretion of the 
51.19 	district court by whom appointed. The examiner's compensation and that of the examiner's 
51.20 	deputies shall be fixed and determined by the court and paid in the same manner as the 
51.21 	compensation of other county employees is paid except that in all counties having fewer 
51.22 	than 75,000 inhabitants, and in Stearns, Dakota, Scott, Wright, Sherburne, and Olmsted 
51.23 	Counties the fees and compensation of the examiners for services as legal adviser to the 
51.24 	registrar shall be determined by the judges of the district court and paid in the same manner 
51.25 	as the compensation of other county employees is paid, but in every other instance shall be 
51.26 	paid by the person applying to have the person's title registered or for other action or relief 
51.27 	which requires the services, certification or approval of the examiner.

51.28 	Sec. 42. Minnesota Statutes 2016, section 518A.79, is amended by adding a subdivision 
51.29 	to read:
51.30 		Subd. 3a.Open meetings. Except as otherwise provided in this section, the task force 
51.31 	is subject to chapter 13D. A meeting of the task force occurs when a quorum is present and 
51.32 	the members receive information, discuss, or take action on any matter relating to the duties 
52.1 	of the task force. The task force may conduct meetings as provided in section 13D.015 or 
52.2 	13D.02. The task force may conduct meetings at any location in the state that is appropriate 
52.3 	for the purposes of the task force as long as the location is open and accessible to the public. 
52.4 	For legislative members of the task force, enforcement of this subdivision is governed by 
52.5 	section 3.055, subdivision 2. For nonlegislative members of the task force, enforcement of 
52.6 	this subdivision is governed by section 13D.06, subdivisions 1 and 2.

52.7 	EFFECTIVE DATE. This section is effective January 1, 2018.

52.8 	Sec. 43. Laws 2016, chapter 127, section 8, is amended to read:
52.9 	Sec. 8. EFFECTIVE DATE; APPLICATION.
 52.10 	Sections 1 to 7 are effective the day following final enactment. With respect to eyelash 
52.11 	technicians, the Board of Cosmetologist Examiners must not enforce sections 1 to 7 until 
52.12 	July 1, 2017 February 1, 2018. Any educational or training requirements developed by the 
52.13 	board regarding eyelash technicians must be 14 hours.

52.14 	Sec. 44. Laws 2017, chapter 21, section 1, subdivision 2, is amended to read:
52.15 		Subd. 2.Exemption; legislature may waive. (a) This section does not apply to contracts 
52.16 	with a value of less than $1,000 $50,000.
52.17 	(b) The legislature may waive application of this section on a contract if the legislature 
52.18 	determines that compliance is not practicable or in the best interests of the state.

52.19 	Sec. 45. Laws 2017, chapter 21, section 3, subdivision 2, is amended to read:
52.20 		Subd. 2.Exemption; commissioner may waive. (a) This section does not apply to 
52.21 	contracts with a value of less than $1,000 $50,000.
52.22 	(b) The commissioner may waive application of this section on a contract if the 
52.23 	commissioner determines that compliance is not practicable or in the best interests of the 
52.24 	state.

52.25 	Sec. 46. SMALL AGENCY ASSISTANCE PROGRAM; LEGISLATIVE AUDITOR 
52.26 	REVIEW.
 52.27 	No later than February 1, 2018, the legislative auditor is requested to conduct a program 
52.28 	evaluation of the small agency assistance program authorized under Minnesota Statutes, 
52.29 	section 16B.371. The program evaluation must be conducted according to the standards 
52.30 	provided for a program evaluation in Minnesota Statutes, section 3.971, subdivision 7.

53.1 	Sec. 47. HISTORIC PRESERVATION; LEGISLATIVE AUDITOR REVIEW.
 53.2 	The legislative auditor is requested to conduct a program evaluation of the State Historic 
53.3 	Preservation Office no later than January 1, 2018. The program evaluation must be consistent 
53.4 	with the standards provided in Minnesota Statutes, section 3.971, subdivision 7, and include 
53.5 	consideration of the office's consistency in its responsiveness to project proposals, and in 
53.6 	its treatment of historic sites in the state, including those that are listed on the national 
53.7 	register, those that are eligible for the national register, and those that are registered as state 
53.8 	historic sites by the Minnesota Historical Society. The evaluation should also include a 
53.9 	review of approaches to state historic preservation governance in other states, in comparison 
53.10 	to Minnesota's governance structure, with emphasis on the impact of those approaches on 
53.11 	the timeliness and consistency of preservation work in those states.

53.12 	Sec. 48. HISTORIC PRESERVATION; TRANSFER.
 53.13 	(a) The powers, duties, responsibilities, personnel, and assets relating to functions 
53.14 	assigned to the Minnesota State Historic Preservation Office are transferred to the Department 
53.15 	of Administration on March 1, 2018. All of the provisions in Minnesota Statutes, section 
53.16 	15.039, apply to the transfer under this section.
53.17 	(b) The commissioner of the Department of Administration in consultation with the 
53.18 	Minnesota Historical Society must develop a plan to transfer functions from the Minnesota 
53.19 	Historical Preservation Office to the Department of Administration. The transfer plan must 
53.20 	provide for the full transition of all state historic preservation office functions to the 
53.21 	Department of Administration.
53.22 	(c) The commissioner must submit a report to the chairs and ranking minority members 
53.23 	of the committees with jurisdiction over the Department of Administration and the Minnesota 
53.24 	Historical Society by January 15, 2019, on the status of the transfer.

53.25 	Sec. 49. OFFICE OF MN.IT SERVICES; IT OPTIMIZATION REPORT 
53.26 	REQUIRED.
 53.27 	The chief information officer shall report by December 31, 2018, on the progress of 
53.28 	executive branch information technology optimization, including the status of data center 
53.29 	consolidation, the status and plans for use of public cloud technology, and the status of state 
53.30 	agency transition to enterprise information technology services.

54.1 	Sec. 50. INITIAL TRANSIT FINANCIAL ACTIVITY REPORTING.
 54.2 	(a) The first transit financial activity review and report submitted under Minnesota 
54.3 	Statutes, section 3.972, subdivision 4, must include financial information from the period 
54.4 	beginning on January 1, 2016, and through the end of the fiscal quarter immediately preceding 
54.5 	the date of the report.
54.6 	(b) The legislative auditor must provide a copy of the review under paragraph (a) to 
54.7 	each county that is party to the joint powers agreement under Minnesota Statutes, section 
54.8 	297A.992.

54.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

54.10 	Sec. 51. TRANSITION; STATE AUDITOR ENTERPRISE FUND.
 54.11 	Notwithstanding any law to the contrary, receipts received by the state auditor on or 
54.12 	after July 1, 2017, from examinations conducted by the state auditor under Minnesota 
54.13 	Statutes, chapter 6, must be credited to the general fund. Amounts in the state auditor 
54.14 	enterprise fund at the end of fiscal year 2017 are transferred to the general fund.

54.15 	Sec. 52. RETENTION OF FISCAL NOTE SYSTEM; LEGISLATIVE BUDGET 
54.16 	OFFICE ACCESS.
 54.17 	The commissioner of management and budget must maintain and, as needed, upgrade 
54.18 	the fiscal note tracking system funded under Laws 2013, chapter 142, article 1, section 13. 
54.19 	The commissioner must provide the Legislative Budget Office established under this act 
54.20 	with complete access to, and use of, the system.

54.21 	EFFECTIVE DATE. This section is effective January 8, 2019.

54.22 	Sec. 53. LEGISLATIVE BUDGET OFFICE TRANSITION PLANNING TASK 
54.23 	FORCE.
 54.24 		Subdivision 1.Membership. The Legislative Budget Office Transition Planning Task 
54.25 	Force is established. The task force consists of the following members:
54.26 	(1) two members of the house of representatives, one appointed by the speaker of the 
54.27 	house, and one appointed by the minority leader of the house of representatives;
54.28 	(2) two members of the senate appointed by the senate Subcommittee on Committees 
54.29 	of the Committee on Rules and Administration, one of whom must represent the majority 
54.30 	caucus of the senate, and one of whom must represent the minority caucus of the senate;
55.1 	(3) the legislative auditor;
55.2 	(4) the commissioner of management and budget; and
55.3 	(5) the state budget director.
55.4 	The chief nonpartisan fiscal analyst of the house of representatives, and the lead 
55.5 	nonpartisan fiscal analyst of the senate, shall serve as ex-officio, nonvoting members of the 
55.6 	task force. Appointments required by this section must be made no later than July 15, 2017. 
55.7 	The chair of the Legislative Coordinating Commission shall designate one member of the 
55.8 	task force to serve as its chair.
55.9 		Subd. 2.Duties; report required. (a) The task force must develop a plan for the orderly 
55.10 	transition of fiscal note and local impact note responsibilities from Minnesota Management 
55.11 	and Budget to the Legislative Budget Office, as required by this act. At a minimum, the 
55.12 	plan must consider the scope of the office's responsibilities, the duties of state agencies and 
55.13 	departments and local governments in facilitating the office's work, and any other issues 
55.14 	relevant to the transition of duties to the office, as determined by the task force. The plan 
55.15 	may include recommendations for additional legislation as necessary to implement the task 
55.16 	force's transition plan, or to further clarify or structure the office's responsibilities.
55.17 	(b) The task force must submit an interim report no later than January 15, 2018, and a 
55.18 	final report no later than December 1, 2018, to the chairs and ranking minority members of 
55.19 	the house of representatives Ways and Means Committee and the senate Finance Committee. 
55.20 	The report must describe the task force's work, including recommendations for a transition 
55.21 	plan and any recommendations for legislation developed under paragraph (a).
55.22 		Subd. 3.Staff. The Legislative Coordinating Commission must provide research and 
55.23 	administrative assistance to support the work of the task force.
55.24 		Subd. 4.Expiration. The task force expires upon submission of its final report to the 
55.25 	legislature under subdivision 2.

55.26 	Sec. 54. MINNESOTA ADMINISTRATIVE RULES STATUS SYSTEM (MARSS) 
55.27 	WORKING GROUP.
 55.28 		Subdivision 1.Creation. The MARSS working group consists of the following nine 
55.29 	members:
55.30 	(1) the chief judge of the Office of Administrative Hearings, or a designee;
55.31 	(2) the secretary of state, or a designee;
56.1 	(3) a representative from the Interagency Rules Committee (IRC) appointed by the 
56.2 	committee;
56.3 	(4) a representative from each of the following agencies with rulemaking experience 
56.4 	appointed by the appropriate commissioner:
56.5 	(i) the Department of Health;
56.6 	(ii) the Minnesota Pollution Control Agency;
56.7 	(iii) the Department of Transportation; and
56.8 	(iv) the Department of Labor and Industry;
56.9 	(5) as designated by the IRC, a representative from a health-related board; and
56.10 	(6) as designated by the IRC, a representative from a non-health-related board.
56.11 		Subd. 2.MARSS description. The Minnesota Administrative Rules Status System 
56.12 	(MARSS) is a concept for a new software application. The application would be built and 
56.13 	maintained by the Revisor's Office. Executive branch agencies and others would upload 
56.14 	official rulemaking record documents to the system. The goal is to improve public access, 
56.15 	security, preservation, and transparency of state agencies' official rulemaking records through 
56.16 	the creation of a single online records system. The system would serve as a single Internet 
56.17 	location for the public to track rulemaking progress and access the official rulemaking 
56.18 	record. Agencies would fulfill their requirement to maintain and preserve the official 
56.19 	rulemaking record by submitting required documents to the revisor for inclusion in the 
56.20 	online records system.
56.21 		Subd. 3.Duties. The working group must report by February 1, 2018, to the chairs and 
56.22 	ranking minority members of the committees in the house of representatives and senate 
56.23 	with jurisdiction over policy and finance for the legislature. The report must identify the 
56.24 	functional and nonfunctional requirements of the MARSS system. The working group must 
56.25 	define a funding mechanism to share the cost to build and maintain the MARSS system 
56.26 	among state agencies and departments.
56.27 		Subd. 4.Administration provisions. (a) The revisor of statutes or the revisor's designee 
56.28 	must convene the initial meeting of the working group by August 1, 2017. Upon request of 
56.29 	the working group, the revisor must provide meeting space and administrative services for 
56.30 	the group.
56.31 	(b) The working group must elect a chair from among its members at the first meeting.
56.32 	(c) Members serve without compensation and without reimbursement for expenses.
57.1 	(d) The working group expires on February 1, 2018, or upon submission of documents 
57.2 	fulfilling its duties, whichever is earlier.
57.3 		Subd. 5.Deadline for appointments and designations. The appointments and 
57.4 	designations authorized by this section must be completed by July 1, 2017.

57.5 	Sec. 55. ICE PALACE ON CAPITOL GROUNDS AUTHORIZED.
 57.6 		Subdivision 1.Use agreement; terms required. The commissioner of administration 
57.7 	may enter a use agreement with the St. Paul Festival and Heritage Foundation for the 
57.8 	construction, operation, and removal of an ice palace and related temporary structures on 
57.9 	the grounds of the State Capitol complex. If a use agreement for this purpose is entered, the 
57.10 	terms must include the following:
57.11 	(1) mutually agreed upon beginning and end dates for access to the grounds for 
57.12 	construction, operation, and removal of the ice palace and related temporary structures;
57.13 	(2) notwithstanding Minnesota Rules, part 7525.0400, an allowance for the St. Paul 
57.14 	Festival and Heritage Foundation to establish fees for admission to the ice palace and for 
57.15 	participation in related activities, and for vendors to sell concessions subject to terms 
57.16 	negotiated in the use agreement. Any fees established must allow a reasonable opportunity 
57.17 	for all Minnesotans, regardless of income, to access the palace and participate in related 
57.18 	activities, and must allow free or discounted admission to members of the military, military 
57.19 	veterans, and their families. A fee may not be charged for general admission to the Capitol 
57.20 	grounds or, to the extent practicable, for access to public memorials and monuments located 
57.21 	on the Capitol grounds;
57.22 	(3) notwithstanding Minnesota Statutes, section 15B.28, and related rules of the Capitol 
57.23 	Area Architectural and Planning Board, an allowance for the St. Paul Festival and Heritage 
57.24 	Foundation to erect advertising devices promoting the ice palace and its sponsors and donors, 
57.25 	subject to terms negotiated in the use agreement;
57.26 	(4) a restriction on private events that limit public access to the ice palace or surrounding 
57.27 	Capitol grounds, without prior approval of the commissioner of administration; and
57.28 	(5) a requirement that, following removal of the ice palace and related temporary 
57.29 	structures, the St. Paul Festival and Heritage Foundation restore the Capitol grounds to the 
57.30 	same condition as existed prior to their construction.
57.31 		Subd. 2.Additional terms. In addition to the terms required by subdivision 1, a use 
57.32 	agreement authorized by this section may include additional terms as necessary to preserve 
57.33 	the integrity, dignity, and security of the State Capitol building, the Capitol grounds, and 
58.1 	the surrounding public buildings, memorials, and monuments, and to ensure compliance 
58.2 	with other applicable laws governing commercial activity on public property.
58.3 		Subd. 3.Costs, expenses, and liabilities. Unless expressly provided in the use agreement, 
58.4 	any costs or expenses incurred by the state or the city of St. Paul in implementing a use 
58.5 	agreement entered under this section must be paid or reimbursed by the St. Paul Festival 
58.6 	and Heritage Foundation. Notwithstanding Minnesota Statutes, section 3.736, subdivision 
58.7 	1, and Minnesota Statutes, section 466.02, the state, the city of St. Paul, and their employees 
58.8 	are not liable for losses incurred during the construction, operation, or removal of an ice 
58.9 	palace or related temporary structures, or losses incurred by a person while visiting the ice 
58.10 	palace or participating in related activities.

58.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

58.12 	Sec. 56. WAITE PARK; HOTEL INSPECTION.
 58.13 	(a) Notwithstanding any other law to the contrary and in addition to any other requirement 
58.14 	in law, the city of Waite Park may adopt an ordinance to require a hotel, motel, or lodging 
58.15 	establishment operating within the city's jurisdiction to have a valid license issued by the 
58.16 	city. The license may prohibit the licensee from:
58.17 	(1) knowingly allowing a room to be occupied for purposes of sex trafficking;
58.18 	(2) knowingly allowing a room to be occupied for the purposes of illegal drug activity;
58.19 	(3) knowingly allowing a room to be occupied by a minor for the consumption of 
58.20 	alcoholic beverages;
58.21 	(4) prohibiting the inspection of the licensed premises;
58.22 	(5) failing to report observed or suspected illegal activity to the police in a reasonable 
58.23 	period of time; and
58.24 	(6) failure to maintain the licensed premises to all building, fire, mechanical, zoning or 
58.25 	licensing codes.
58.26 	The ordinance may provide for inspections related to the activities the license addresses. 
58.27 	The city may collect a reasonable fee related to the cost of issuing the license and conducting 
58.28 	inspections.
58.29 	(b) "Hotel," "motel," and "lodging establishment" are as defined in Minnesota Statutes, 
58.30 	section 157.15.
59.1 	(c) The authority in this section does not replace or diminish the authority of the 
59.2 	community health board to inspect and license any hotel, motel, or lodging establishment 
59.3 	in the city.

59.4 	EFFECTIVE DATE. This section is effective the day following final enactment without 
59.5 	local approval, as provided in Minnesota Statutes, section 645.023, subdivision 1, paragraph 
59.6 	(a).

59.7 	Sec. 57. EYELASH TECHNICIAN GRANDFATHERING.
 59.8 	(a) The board must issue grandfathered eyelash technician licenses no later than February 
59.9 	1, 2018, under the conditions in this section.
59.10 	(b) A complete grandfathering application for an eyelash technician license must be 
59.11 	received in the board office between August 1, 2017, and January 31, 2018, and must contain:
59.12 	(1) proof of a high school diploma or equivalent;
59.13 	(2) proof of completion of an eyelash extension training course before July 1, 2017;
59.14 	(3) proof of completion of a six-hour board-approved public health and safety course 
59.15 	provided by a board-licensed school or a board-recognized professional association organized 
59.16 	under Minnesota Statutes, chapter 317A. Four hours must be related to health, safety, and 
59.17 	infection control and two hours must be related to Minnesota laws and rules governing 
59.18 	cosmetology;
59.19 	(4) original passing results no more than one year old of board-approved laws and rules 
59.20 	test and theory tests; and
59.21 	(5) the practitioner fees required under Minnesota Statutes, section 155A.25.
59.22 	(c) A complete grandfathering application for an eyelash salon manager license must 
59.23 	be received in the board office between August 1, 2017, and January 31, 2018, and must 
59.24 	contain:
59.25 	(1) proof of a high school diploma or equivalent;
59.26 	(2) proof of completion of an eyelash extension training course before July 1, 2017;
59.27 	(3) documentation of at least 2,700 hours of experience performing eyelash extensions 
59.28 	within the last three years;
59.29 	(4) original passing results no more than one year old of board-approved laws and rules 
59.30 	test and theory tests;
60.1 	(5) original passing results no more than one year old of board-approved salon manager 
60.2 	test;
60.3 	(6) proof of a six-hour board-approved public health and safety course provided by a 
60.4 	board-licensed school or a board-recognized professional association organized under 
60.5 	Minnesota Statutes, chapter 317A. Four hours must be related to infection control and two 
60.6 	hours must be related to Minnesota laws and rules; and
60.7 	(7) the practitioner fees required under Minnesota Statutes, section 155A.25.
60.8 	(d) Grandfathered licenses must not be expedited under Minnesota Statutes, section 
60.9 	155A.25, subdivision 7. The application timelines under Minnesota Statutes, section 155A.25, 
60.10 	subdivisions 5, 6, and 8, do not apply to grandfathered licenses.

60.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

60.12 	Sec. 58. EYELASH TECHNICIAN RULEMAKING.
 60.13 	The Board of Cosmetologist Examiners shall adopt rules governing the eyelash technician 
60.14 	and salon licenses, which must include scope of practice, the conditions and process of 
60.15 	issuing and renewing the license, requirements related to education and testing, and 14 hours 
60.16 	of training regarding application of eyelash extensions in a board-licensed school. The board 
60.17 	may use the expedited rule process in Minnesota Statutes, section 14.389. The grant of 
60.18 	rulemaking authority under this section expires May 31, 2019.

60.19 	Sec. 59. EYELASH TECHNICIAN LICENSING.
 60.20 	The Board of Cosmetologist Examiners must not issue an eyelash practitioner license 
60.21 	before February 1, 2018, except for grandfathered licenses issued under section 59. The 
60.22 	Board of Cosmetologist Examiners must not require a person to have an eyelash practitioner 
60.23 	license for eyelash extensions before February 1, 2018.

60.24 	Sec. 60.  REPEALER.
 60.25 	Minnesota Statutes 2016, sections 6.581, subdivision 1; and 349A.08, subdivision 3,
60.26 	are repealed.

60.27 	ARTICLE 3
60.28 	CAMPAIGN FINANCE AND ELECTIONS

60.29 	Section 1. Minnesota Statutes 2016, section 10A.01, subdivision 12, is amended to read:
61.1 		Subd. 12.Depository. "Depository" means a bank, savings association, or credit union 
61.2 	organized under federal or state law and transacting business within this state. The 
61.3 	depositories of a political committee or political fund include any depository in which the 
61.4 	committee or fund has a savings, checking, or similar account, or purchases a money market 
61.5 	certificate or certificate of deposit.

61.6 	Sec. 2. Minnesota Statutes 2016, section 10A.01, subdivision 16, is amended to read:
61.7 		Subd. 16.Election cycle. "Election cycle" means the period from January 1 following 
61.8 	a general election for an office to December 31 following the next general election for that 
61.9 	office, except that "election cycle" for a special election means the period from the date the 
61.10 	special election writ is issued to 6015 days after the special election is held. For a regular 
61.11 	election, the period from January 1 of the year prior to an election year through December 
61.12 	31 of the election year is the "election segment" of the election cycle. Each other two-year 
61.13 	segment of an election cycle is a "nonelection segment" of the election cycle. An election 
61.14 	cycle that consists of two calendar years has only an election segment. The election segment 
61.15 	of a special election cycle includes the entire special election cycle.

61.16 	EFFECTIVE DATE. This section is effective the day following final enactment and 
61.17 	applies to any special election cycle that starts on or after that date.

61.18 	Sec. 3. Minnesota Statutes 2016, section 10A.025, subdivision 1a, is amended to read:
61.19 		Subd. 1a.Electronic filing. (a) A report or statement required to be filed under this 
61.20 	chapter may be filed electronically. The board shall adopt rules to regulate electronic filing 
61.21 	and to ensure that the electronic filing process is secure.
61.22 	(b) A document filed by facsimile transmission or electronic filing system has the same 
61.23 	force and effect as filing an original paper document.
61.24 	(c) In order to provide a secure environment for the submission of electronic files, the 
61.25 	board must require that a filer use a personal identification code when submitting an 
61.26 	electronic file. The board may also request the filer to provide a valid e-mail address in 
61.27 	order to receive confirmation and verification messages from the board.
61.28 	(d) After an electronic file is processed by the board, the information contained in the 
61.29 	electronic file becomes the property of the state subject to the terms of the Data Practices 
61.30 	Act under chapter 13.
61.31 	(e) In the case of a filing by facsimile transmission, the filer must retain the original of 
61.32 	the filed document and a record of the date and time of the transmission. If an electronic 
62.1 	filing system is used to submit an electronic file to the board, the filer must retain as 
62.2 	documentation the database and information on which the electronic submission of data is 
62.3 	based. The database and records are subject to audit as provided in this chapter.
62.4 	(f) Within five days of a request by the board, any person filing a document by facsimile 
62.5 	transmission or electronic filing system shall refile the document by one of the other filing 
62.6 	methods provided in Minnesota Rules, part 4501.0500, subpart 1.
62.7 	(g) Technical problems that prevent the successful submission of a facsimile transmission 
62.8 	or electronic file do not relieve the filer of the responsibility of meeting the requirements 
62.9 	of this chapter. An audit trail that demonstrates that the facsimile transmission or electronic 
62.10 	file was successfully submitted in a timely fashion may be used by the board to waive late 
62.11 	filing fees.

62.12 	Sec. 4. Minnesota Statutes 2016, section 10A.04, is amended by adding a subdivision to 
62.13 	read:
62.14 		Subd. 9.Reporting by multiple lobbyists representing the same entity. Clauses (1) 
62.15 	to (6) apply when a single individual, association, political subdivision, or public higher 
62.16 	education system is represented by more than one lobbyist.
62.17 	(1) The entity must appoint one designated lobbyist to report lobbyist disbursements 
62.18 	made by the entity. The designated lobbyist must indicate that status on the periodic reports 
62.19 	of lobbyist disbursements.
62.20 	(2) A reporting lobbyist may consent to report on behalf of one or more other lobbyists 
62.21 	for the same entity, in which case, the other lobbyists are persons whose activities the 
62.22 	reporting lobbyist must disclose and are subject to the disclosure requirements of subdivision 
62.23 	3. Lobbyist disbursement reports filed by a reporting lobbyist must include the names and 
62.24 	registration numbers of the other lobbyists whose activities are included in the report.
62.25 	(3) Lobbyists whose activities are accounted for by a reporting lobbyist are not required 
62.26 	to file lobbyist disbursement reports.
62.27 	(4) A lobbyist whose lobbying disbursements are provided to the board through a 
62.28 	reporting lobbyist must supply all relevant information on disbursements to the reporting 
62.29 	lobbyist no later than five days before the prescribed filing date.
62.30 	(5) The reporting periods and due dates for a reporting lobbyist are those provided in 
62.31 	subdivision 2. The late filing provisions in subdivision 5 apply to reports required by this 
62.32 	subdivision.
63.1 	(6) The reporting lobbyist must indicate the names and registration numbers of any 
63.2 	lobbyists who did not provide their lobbying disbursements for inclusion in a report. The 
63.3 	late filing provisions in subdivision 5 apply to lobbyists who fail to report information to 
63.4 	the reporting lobbyist.

63.5 	Sec. 5. Minnesota Statutes 2016, section 10A.071, subdivision 1, is amended to read:
63.6 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
63.7 	(b) "Gift" means money, real or personal property, a service, a loan, a forbearance or 
63.8 	forgiveness of indebtedness, or a promise of future employment, that is given and received 
63.9 	without the giver receiving consideration of equal or greater value in return.
63.10 	(c) "Official" means a public official, an employee of the legislature, or a local official 
63.11 	of a metropolitan governmental unit.
63.12 	(d) "Plaque" means a decorative item with an inscription recognizing an individual for 
63.13 	an accomplishment.

63.14 	Sec. 6. Minnesota Statutes 2016, section 10A.09, subdivision 5, is amended to read:
63.15 		Subd. 5.Form. (a) A statement of economic interest required by this section must be 
63.16 	on a form prescribed by the board. The individual filing must provide the following 
63.17 	information:
63.18 	(1) name, address, occupation, and principal place of business;
63.19 	(2) the name of each associated business and the nature of that association;
63.20 	(3) a listing of all real property within the state, excluding homestead property, in which 
63.21 	the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as buyer or 
63.22 	seller, or an option to buy, whether direct or indirect, if the interest is valued in excess of 
63.23 	$2,500; or (ii) an option to buy, if the property has a fair market value of more than $50,000;
63.24 	(4) a listing of all real property within the state in which a partnership of which the 
63.25 	individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed as 
63.26 	buyer or seller, or an option to buy, whether direct or indirect, if the individual's share of 
63.27 	the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the property 
63.28 	has a fair market value of more than $50,000. A listing under this clause or clause (3) must 
63.29 	indicate the street address and the municipality or the section, township, range and 
63.30 	approximate acreage, whichever applies, and the county in which the property is located;
64.1 	(5) a listing of any investments, ownership, or interests in property connected with 
64.2 	pari-mutuel horse racing in the United States and Canada, including a racehorse, in which 
64.3 	the individual directly or indirectly holds a partial or full interest or an immediate family 
64.4 	member holds a partial or full interest;
64.5 	(6) a listing of the principal business or professional activity category of each business 
64.6 	from which the individual receives more than $50 in any month as an employee, if the 
64.7 	individual has an ownership interest of 25 percent or more in the business; and
64.8 	(7) a listing of each principal business or professional activity category from which the 
64.9 	individual received compensation of more than $2,500 in the past 12 months as an 
64.10 	independent contractor.; and
64.11 	(8) the full name of each security with a value of more than $2,500 owned in part or in 
64.12 	full by the public official at any time during the reporting period.
64.13 	(b) The business or professional categories for purposes of paragraph (a), clauses (6) 
64.14 	and (7), must be the general topic headings used by the federal Internal Revenue Service 
64.15 	for purposes of reporting self-employment income on Schedule C. This paragraph does not 
64.16 	require an individual to report any specific code number from that schedule. Any additional 
64.17 	principal business or professional activity category may only be adopted if the category is 
64.18 	enacted by law.
64.19 	(c) For the purpose of an original statement of economic interest, "compensation in any 
64.20 	month" includes only compensation received in the calendar month immediately preceding 
64.21 	the date of appointment as a public official or filing as a candidate.
64.22 	(d) For the purpose of calculating the amount of compensation received from any single 
64.23 	source in a single month, the amount shall include the total amount received from the source 
64.24 	during the month, whether or not the amount covers compensation for more than one month.

64.25 	Sec. 7. Minnesota Statutes 2016, section 10A.09, subdivision 6, is amended to read:
64.26 		Subd. 6.Annual statement. (a) Each individual who is required to file a statement of 
64.27 	economic interest must also file an annual statement by the last Monday in January of each 
64.28 	year that the individual remains in office. The annual statement must cover the period 
64.29 	through December 31 of the year prior to the year when the statement is due. The annual 
64.30 	statement must include the amount of each honorarium in excess of $50 received since the 
64.31 	previous statement and the name and address of the source of the honorarium. The board 
64.32 	must maintain each annual statement of economic interest submitted by an officeholder in 
64.33 	the same file with the statement submitted as a candidate.
65.1 	(b) For the purpose of annual statements of economic interest to be filed, "compensation 
65.2 	in any month" includes compensation and honoraria received in any month between the 
65.3 	end of the period covered in the preceding statement of economic interest and the end of 
65.4 	the current period.
65.5 	(c) An individual must file the annual statement of economic interest required by this 
65.6 	subdivision to cover the period for which the individual served as a public official even 
65.7 	though at the time the statement was filed, the individual is no longer holding that office as 
65.8 	a public official.

65.9 	Sec. 8. Minnesota Statutes 2016, section 10A.15, is amended by adding a subdivision to 
65.10 	read:
65.11 		Subd. 6.Contributions from Hennepin County registered associations.  In lieu of 
65.12 	registration with the board, an association registered with the Hennepin County filing officer 
65.13 	under sections 383B.041 to 383B.058 that makes contributions of more than $500 to a 
65.14 	committee or fund in a calendar year may notify the recipient committee of its registration 
65.15 	with Hennepin County, including its registration number, and instruct the recipient committee 
65.16 	to include the notice when the recipient committee discloses receipt of the contribution.

65.17 	Sec. 9. [10A.155] VALUE OF CONTRIBUTIONS OF AUTOMOBILE USE.
65.18 	Automobile use provided to a committee by an individual may be valued at the lowest 
65.19 	rate used by the state to reimburse its employees for automobile use. Alternatively, the value 
65.20 	of the automobile may be calculated as the actual cost of fuel, maintenance, repairs, and 
65.21 	insurance directly related to the use of the automobile. An automobile provided by an 
65.22 	association must be valued at the fair market value for renting an equivalent automobile.

65.23 	Sec. 10. Minnesota Statutes 2016, section 10A.20, subdivision 3, is amended to read:
65.24 		Subd. 3.Contents of report. (a) The report required by this section must include each 
65.25 	of the items listed in paragraphs (b) to (o)(q) that are applicable to the filer. The board shall 
65.26 	prescribe forms based on filer type indicating which of those items must be included on the 
65.27 	filer's report.
65.28 	(b) The report must disclose the amount of liquid assets on hand at the beginning of the 
65.29 	reporting period.
65.30 	(c) The report must disclose the name, address, employer, or occupation if self-employed, 
65.31 	and registration number if registered with the board, of each individual or association that 
65.32 	has made one or more contributions to the reporting entity, including the purchase of tickets 
66.1 	for a fund-raising effort, that in aggregate within the year exceed $200 for legislative or 
66.2 	statewide candidates or more than $500 for ballot questions, together with the amount and 
66.3 	date of each contribution, and the aggregate amount of contributions within the year from 
66.4 	each source so disclosed. A donation in kind must be disclosed at its fair market value. An 
66.5 	approved expenditure must be listed as a donation in kind. A donation in kind is considered 
66.6 	consumed in the reporting period in which it is received. The names of contributors must 
66.7 	be listed in alphabetical order. Contributions from the same contributor must be listed under 
66.8 	the same name. When a contribution received from a contributor in a reporting period is 
66.9 	added to previously reported unitemized contributions from the same contributor and the 
66.10 	aggregate exceeds the disclosure threshold of this paragraph, the name, address, and 
66.11 	employer, or occupation if self-employed, of the contributor must then be listed on the 
66.12 	report.
66.13 	(d) The report must disclose the sum of contributions to the reporting entity during the 
66.14 	reporting period.
66.15 	(e) The report must disclose each loan made or received by the reporting entity within 
66.16 	the year in aggregate in excess of $200, continuously reported until repaid or forgiven, 
66.17 	together with the name, address, occupation, principal place of business, if any, and 
66.18 	registration number if registered with the board of the lender and any endorser and the date 
66.19 	and amount of the loan. If a loan made to the principal campaign committee of a candidate 
66.20 	is forgiven or is repaid by an entity other than that principal campaign committee, it must 
66.21 	be reported as a contribution for the year in which the loan was made.
66.22 	(f) The report must disclose each receipt over $200 during the reporting period not 
66.23 	otherwise listed under paragraphs (c) to (e).
66.24 	(g) The report must disclose the sum of all receipts of the reporting entity during the 
66.25 	reporting period.
66.26 	(h) The report must disclose the name, address, and registration number if registered 
66.27 	with the board of each individual or association to whom aggregate expenditures, approved 
66.28 	expenditures, independent expenditures, and ballot question expenditures have been made 
66.29 	by or on behalf of the reporting entity within the year in excess of $200, together with the 
66.30 	amount, date, and purpose of each expenditure and the name and address of, and office 
66.31 	sought by, each candidate on whose behalf the expenditure was made, identification of the 
66.32 	ballot question that the expenditure was intended to promote or defeat and an indication of 
66.33 	whether the expenditure was to promote or to defeat the ballot question, and in the case of 
66.34 	independent expenditures made in opposition to a candidate, the candidate's name, address, 
67.1 	and office sought. A reporting entity making an expenditure on behalf of more than one 
67.2 	candidate for state or legislative office must allocate the expenditure among the candidates 
67.3 	on a reasonable cost basis and report the allocation for each candidate.
67.4 	(i) The report must disclose the sum of all expenditures made by or on behalf of the 
67.5 	reporting entity during the reporting period.
67.6 	(j) The report must disclose the amount and nature of an advance of credit incurred by 
67.7 	the reporting entity, continuously reported until paid or forgiven. If an advance of credit 
67.8 	incurred by the principal campaign committee of a candidate is forgiven by the creditor or 
67.9 	paid by an entity other than that principal campaign committee, it must be reported as a 
67.10 	donation in kind for the year in which the advance of credit was made.
67.11 	(k) The report must disclose the name, address, and registration number if registered 
67.12 	with the board of each political committee, political fund, principal campaign committee, 
67.13 	or party unit to which contributions have been made that aggregate in excess of $200 within 
67.14 	the year and the amount and date of each contribution.
67.15 	(l) The report must disclose the sum of all contributions made by the reporting entity 
67.16 	during the reporting period.
67.17 	(m) The report must disclose the name, address, and registration number if registered 
67.18 	with the board of each individual or association to whom noncampaign disbursements have 
67.19 	been made that aggregate in excess of $200 within the year by or on behalf of the reporting 
67.20 	entity and the amount, date, and purpose of each noncampaign disbursement.
67.21 	(n) The report must disclose the sum of all noncampaign disbursements made within 
67.22 	the year by or on behalf of the reporting entity.
67.23 	(o) The report must disclose the name and address of a nonprofit corporation that provides 
67.24 	administrative assistance to a political committee or political fund as authorized by section 
67.25 	211B.15, subdivision 17, the type of administrative assistance provided, and the aggregate 
67.26 	fair market value of each type of assistance provided to the political committee or political 
67.27 	fund during the reporting period.
67.28 	(p) Legislative, statewide, and judicial candidates, party units, and political committees 
67.29 	and funds must itemize contributions that in aggregate within the year exceed $200 for 
67.30 	legislative or statewide candidates or more than $500 for ballot questions on reports submitted 
67.31 	to the board. The itemization must include the date on which the contribution was received, 
67.32 	the individual or association that provided the contribution, and the address of the contributor. 
67.33 	Additionally, the itemization for a donation in kind must provide a description of the item 
68.1 	or service received. Contributions that are less than the itemization amount must be reported 
68.2 	as an aggregate total.
68.3 	(q) Legislative, statewide, and judicial candidates, party units, political committees and 
68.4 	funds, and committees to promote or defeat a ballot question must itemize expenditures and 
68.5 	noncampaign disbursements that in aggregate exceed $200 in a calendar year on reports 
68.6 	submitted to the board. The itemization must include the date on which the committee made 
68.7 	or became obligated to make the expenditure or disbursement, the name and address of the 
68.8 	vendor that provided the service or item purchased, and a description of the service or item 
68.9 	purchased. Expenditures and noncampaign disbursements must be listed on the report 
68.10 	alphabetically by vendor.

68.11 	Sec. 11. Minnesota Statutes 2016, section 10A.25, subdivision 2, is amended to read:
68.12 		Subd. 2.Amounts. (a) In a segment of an election cycle, the principal campaign 
68.13 	committee of the candidate must not make campaign expenditures nor permit approved 
68.14 	expenditures to be made on behalf of the candidate that result in aggregate expenditures in 
68.15 	excess of the following:
68.16 	(1) for governor and lieutenant governor, running together, $3,651,200 in the election 
68.17 	segment and $1,564,800 in the nonelection segment;
68.18 	(2) for attorney general, $626,000 in the election segment and $208,700 in the nonelection 
68.19 	segment;
68.20 	(3) for secretary of state and state auditor, separately, $417,300 in the election segment 
68.21 	and $104,400 in the nonelection segment;
68.22 	(4) for state senator, $94,700 in the election segment and $31,600 in a nonelection 
68.23 	segment;
68.24 	(5) for state representative, $63,100 in the election segment.
68.25 	(b) In addition to the amount in paragraph (a), clause (1), a candidate for endorsement 
68.26 	for the office of lieutenant governor at the convention of a political party may make campaign 
68.27 	expenditures and approved expenditures of five percent of that amount to seek endorsement.
68.28 	(c) If a special election cycle occurs during a general election cycle, expenditures by or 
68.29 	on behalf of a candidate in the special election do not count as expenditures by or on behalf 
68.30 	of the candidate in the general election.
68.31 	(d) The expenditure limits in this subdivision for an office are increased by ten percent 
68.32 	for a candidate who has not previously held the same office, whose name has not previously 
69.1 	been on the primary or general election ballot for that office, and who has not in the past 
69.2 	ten years raised or spent more than $750 in a run for any other office whose territory now 
69.3 	includes a population that is more than one-third of the population in the territory of the 
69.4 	new office. Candidates who qualify for first-time candidate status receive a ten percent 
69.5 	increase in the campaign expenditure limit in all segments of the applicable election cycle. 
69.6 	In the case of a legislative candidate, the office is that of a member of the house of 
69.7 	representatives or senate without regard to any specific district.

69.8 	Sec. 12. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to 
69.9 	read:
69.10 		Subd. 16a.Return of contributions after merger of governor and lieutenant governor 
69.11 	funds.  Funds transferred to the joint committee for candidates for governor and lieutenant 
69.12 	governor that result in aggregate contributions in excess of the applicable limits may be 
69.13 	returned to the contributor within 90 days of the transfer of funds to the joint committee.

69.14 	Sec. 13. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to 
69.15 	read:
69.16 		Subd. 16b.Special election contribution limits. Election segment contribution limits 
69.17 	set forth in this section apply to a special election cycle.

69.18 	Sec. 14. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to 
69.19 	read:
69.20 		Subd. 16c.Contribution limits apply independently. Contribution limits apply 
69.21 	independently for election segments, nonelection segments, and special election cycles.

69.22 	Sec. 15. Minnesota Statutes 2016, section 10A.31, is amended by adding a subdivision to 
69.23 	read:
69.24 		Subd. 7b.Failure to repay. A candidate who fails to repay money required by the 
69.25 	agreement cannot be paid additional public subsidy funds during the current or future election 
69.26 	cycles until the entirety of the unexpended funds and any associated collection fees are 
69.27 	either repaid to the board or discharged by court action.

69.28 	Sec. 16. Minnesota Statutes 2016, section 10A.323, is amended to read:
69.29 	10A.323 AFFIDAVIT OF CONTRIBUTIONS.
70.1 	(a) In addition to the requirements of section 10A.322, to be eligible to receive a public 
70.2 	subsidy under section 10A.31 a candidate or the candidate's treasurer must:
70.3 	(1) between January 1 of the previous year and the cutoff date for transactions included 
70.4 	in the report of receipts and expenditures due before the primary election, accumulate 
70.5 	contributions from individuals eligible to vote in this state in at least the amount indicated 
70.6 	for the office sought, counting only the first $50 received from each contributor, excluding 
70.7 	in-kind contributions:
70.8 	(i) candidates for governor and lieutenant governor running together, $35,000;
70.9 	(ii) candidates for attorney general, $15,000;
70.10 	(iii) candidates for secretary of state and state auditor, separately, $6,000;
70.11 	(iv) candidates for the senate, $3,000; and
70.12 	(v) candidates for the house of representatives, $1,500;
70.13 	(2) file an affidavit with the board stating that the principal campaign committee has 
70.14 	complied with this paragraph. The affidavit must state the total amount of contributions that 
70.15 	have been received from individuals eligible to vote in this state, excluding:
70.16 	(i) the portion of any contribution in excess of $50;
70.17 	(ii) any in-kind contribution; and
70.18 	(iii) any contribution for which the name and address of the contributor is not known 
70.19 	and recorded; and
70.20 	(3) submit the affidavit required by this section to the board in writing by the deadline 
70.21 	for reporting of receipts and expenditures before a primary under section 10A.20, subdivision 
70.22 	4.
70.23 	(b) A candidate for a vacancy to be filled at a special election for which the filing period 
70.24 	does not coincide with the filing period for the general election must accumulate the 
70.25 	contributions specified in paragraph (a) and must submit the affidavit required by this section 
70.26 	to the board within five days after the close of the filing period for the special election for 
70.27 	which the candidate filed.
70.28 	(c) A candidate or the candidate's treasurer must be able to electronically file the affidavit 
70.29 	required under this section in the same manner as other reports required by this chapter. 
70.30 	The board must not require the candidate or candidate's treasurer to notarize the affidavit 
70.31 	of contribution.

71.1 	Sec. 17. [206.95] VOTING EQUIPMENT GRANT ACCOUNT.
71.2 		Subdivision 1.Voting equipment grant account. A voting equipment grant account is 
71.3 	established in the special revenue fund. Funds in the account are appropriated to the secretary 
71.4 	of state to provide grants to political subdivisions as authorized by this section. Funds in 
71.5 	the account are available until expended.
71.6 		Subd. 2.Authorized equipment. A political subdivision may apply to receive a grant 
71.7 	under this section for the purchase or lease of the following:
71.8 	(1) an electronic voting system, or any individual components of an electronic voting 
71.9 	system as provided in section 206.56, subdivision 8;
71.10 	(2) assistive voting technology;
71.11 	(3) an electronic roster system meeting the technology requirements of section 201.225, 
71.12 	subdivision 2; and
71.13 	(4) any other equipment or technology approved by the secretary of state for use in 
71.14 	conducting a state or local election in Minnesota consistent with the requirements of law.
71.15 		Subd. 3.Application. (a) The secretary of state may make a grant from the account to 
71.16 	a political subdivision only after receiving an application from the political subdivision. 
71.17 	The application must contain the following information:
71.18 	(1) the date the application is submitted;
71.19 	(2) the name of the political subdivision;
71.20 	(3) the name and title of the individual who prepared the application;
71.21 	(4) the type of voting system currently used in each precinct in the political subdivision;
71.22 	(5) the date the system currently used was acquired and at what cost;
71.23 	(6) the total number of registered voters, as of the date of the application, in each precinct 
71.24 	in the political subdivision;
71.25 	(7) the total amount of the grant requested;
71.26 	(8) the total amount and source of the political subdivision's money to be used to match 
71.27 	a grant from the account;
71.28 	(9) the type of voting system to be acquired with the grant money and whether the voting 
71.29 	system will permit individuals with disabilities to cast a secret ballot;
72.1 	(10) the proposed schedule for purchasing and implementing the new voting system and 
72.2 	the precincts in which the new voting system would be used;
72.3 	(11) whether the political subdivision has previously applied for a grant from the account 
72.4 	and the disposition of that application;
72.5 	(12) a certified statement by the political subdivision that the grant will be used only to 
72.6 	purchase authorized equipment under subdivision 2 of this section and that the political 
72.7 	subdivision has insufficient resources to purchase the voting system without obtaining a 
72.8 	grant from the account; and
72.9 	(13) any other information required by the secretary of state.
72.10 	(b) The secretary of state must establish a deadline for receipt of grant applications, a 
72.11 	procedure for awarding and distributing grants, and a process for verifying the proper use 
72.12 	of the grants after distribution.
72.13 		Subd. 4.Amount of grant. A political subdivision is eligible to receive a grant of no 
72.14 	more than 75 percent of the total cost of electronic roster equipment and 50 percent of the 
72.15 	total cost of all other equipment or technology authorized for a grant under subdivision 2. 
72.16 	In evaluating the application, the secretary of state shall consider only the information set 
72.17 	forth in the application and is not subject to chapter 14. If the secretary of state determines 
72.18 	that the application has been fully and properly completed, and that there is a sufficient 
72.19 	balance in the account to fund the grant, either in whole or in part, the secretary of state 
72.20 	may approve the application.
72.21 		Subd. 5.Report to legislature. No later than January 15, 2018, and annually thereafter 
72.22 	until the appropriations provided for grants under this section have been exhausted, the 
72.23 	secretary of state must submit a report to the legislative committees with jurisdiction over 
72.24 	elections policy on grants awarded by this section. The report must detail each grant awarded, 
72.25 	including the jurisdiction, the amount of the grant, and the type of equipment purchased.

72.26 	Sec. 18.  REPEALER.
 72.27 	(a) Minnesota Statutes 2016, section 204B.48, is repealed.
72.28 	(b) Minnesota Rules, parts 4501.0300, subpart 3; 4501.0500, subpart 2; 4503.0200, 
72.29 	subpart 6; 4503.0300, subpart 4; 4503.0400, subpart 1; 4503.0500, subparts 5 and 8; 
72.30 	4503.0700, subparts 2 and 3; 4503.1300, subpart 5; 4503.1400, subparts 8 and 9; 4503.1450, 
72.31 	subparts 1 and 3; 4503.1600; 4503.1700; 4503.1800; 4505.0100, subpart 3; 4505.0900, 
72.32 	subparts 2, 3, 4, 5, 6, and 7; 4511.0500, subpart 2; 4512.0100, subparts 2, 4, and 5; and 
72.33 	4525.0210, subpart 1, are repealed.

73.1 	ARTICLE 4
73.2 	MILITARY AFFAIRS AND VETERANS AFFAIRS

73.3 	Section 1. Minnesota Statutes 2016, section 190.19, subdivision 2, is amended to read:
73.4 		Subd. 2.Uses. (a) Money appropriated from the Minnesota "Support Our Troops" account 
73.5 	to the Department of Military Affairs may be used for:
73.6 	(1) grants directly to eligible individuals;
73.7 	(2) grants to one or more eligible foundations for the purpose of making grants to eligible 
73.8 	individuals, as provided in this section;
73.9 	(3) veterans' services; or
73.10 	(4) grants to family readiness groups chartered by the adjutant general.
73.11 	(b) As used in paragraph (a), the term "eligible individual" includes any person who is:
73.12 	(1) a member in good standing of the Minnesota National Guard or a reserve unit based 
73.13 	in Minnesota who has been called to active service as defined in section 190.05, subdivision 
73.14 	5;
73.15 	(2) a Minnesota resident who is a member of a military reserve unit not based in 
73.16 	Minnesota, if the member is called to active service as defined in section 190.05, subdivision 
73.17 	5;
73.18 	(3) any other Minnesota resident performing active service for any branch of the military 
73.19 	of the United States;
73.20 	(4) a person who honorably served in one of the capacities listed in clause (1), (2), or 
73.21 	(3) who has current financial needs directly related to that service; and
73.22 	(5) a member of the immediate family of an individual identified in clause (1), (2), (3), 
73.23 	or (4). For purposes of this clause, "immediate family" means the individual's spouse and 
73.24 	minor children and, if they are dependents of the member of the military, the member's 
73.25 	parents, grandparents, siblings, stepchildren, and adult children.
73.26 	(c) As used in paragraph (a), the term "eligible foundation" includes any organization 
73.27 	that:
73.28 	(1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code;
73.29 	(2) has articles of incorporation under chapter 317A specifying the purpose of the 
73.30 	organization as including the provision of financial assistance to members of the Minnesota 
74.1 	National Guard and other United States armed forces reserves and their families and 
74.2 	survivors; and
74.3 	(3) agrees in writing to distribute any grant money received from the adjutant general 
74.4 	under this section to eligible individuals as defined in this section and in accordance with 
74.5 	any written policies and rules the adjutant general may impose as conditions of the grant to 
74.6 	the foundation.
74.7 	(d) The maximum grant awarded to an eligible individual under paragraph (a) in a 
74.8 	calendar year with funds from the Minnesota "Support Our Troops" account, either through 
74.9 	an eligible institution or directly from the adjutant general, may not exceed $2,000 $4,000.

74.10 	Sec. 2. Minnesota Statutes 2016, section 190.19, subdivision 2a, is amended to read:
74.11 		Subd. 2a.Uses; veterans. (a) Money appropriated to the Department of Veterans Affairs 
74.12 	from the Minnesota "Support Our Troops" account may be used for:
74.13 	(1) grants to veterans service organizations;
74.14 	(2) outreach to underserved veterans;
74.15 	(3) providing services and programs for veterans and their families;
74.16 	(4) transfers to the vehicle services account for Gold Star license plates under section 
74.17 	168.1253;
74.18 	(5) grants of up to $100,000 to any organization approved by the commissioner of 
74.19 	veterans affairs for the purpose of supporting and improving the lives of veterans and their 
74.20 	families; and
74.21 	(6) grants to an eligible foundation.; and
74.22 	(7) the agency's uncompensated burial costs for eligible dependents to whom the 
74.23 	commissioner grants a no-fee or reduced-fee burial in the state's veteran cemeteries pursuant 
74.24 	to section 197.236, subdivision 9, paragraph (b).
74.25 	(b) For purposes of this subdivision, "eligible foundation" includes any organization 
74.26 	that:
74.27 	(1) is a tax-exempt organization under section 501(c) of the Internal Revenue Code; and
74.28 	(2) is a nonprofit corporation under chapter 317A and the organization's articles of 
74.29 	incorporation specify that a purpose of the organization includes: (i) providing assistance 
74.30 	to veterans and their families; or (ii) enhancing the lives of veterans and their families.

75.1 	Sec. 3. Minnesota Statutes 2016, section 196.05, subdivision 1, is amended to read:
75.2 		Subdivision 1.General duties. The commissioner shall:
75.3 	(1) act as the agent of a resident of the state having a claim against the United States for 
75.4 	benefits arising out of or by reason of service in the armed forces and prosecute the claim 
75.5 	without charge;
75.6 	(2) act as custodian of veterans' bonus records;
75.7 	(3) administer the laws relating to the providing of bronze flag holders at veterans' graves 
75.8 	for memorial purposes;
75.9 	(4) administer the laws relating to recreational or rest camps for veterans so far as 
75.10 	applicable to state agencies;
75.11 	(5) administer the state soldiers' assistance fund and veterans' relief fund and other funds 
75.12 	appropriated for the payment of bonuses or other benefits to veterans or for the rehabilitation 
75.13 	of veterans;
75.14 	(6) cooperate with national, state, county, municipal, and private social agencies in 
75.15 	securing to veterans and their dependents the benefits provided by national, state, and county 
75.16 	laws, municipal ordinances, or public and private social agencies;
75.17 	(7) provide necessary assistance where other adequate aid is not available to the dependent 
75.18 	family of a veteran while the veteran is hospitalized and after the veteran is released for as 
75.19 	long a period as is necessary as determined by the commissioner;
75.20 	(8) cooperate with United States governmental agencies providing compensation, 
75.21 	pensions, insurance, or other benefits provided by federal law, by supplementing the benefits 
75.22 	prescribed therein, when conditions in an individual case make it necessary;
75.23 	(9) assist dependent family members of military personnel who are called from reserve 
75.24 	status to extended federal active duty during a time of war or national emergency through 
75.25 	the state soldiers' assistance fund provided by section 197.03;
75.26 	(10) exercise other powers as may be authorized and necessary to carry out the provisions 
75.27 	of this chapter and chapter 197, consistent with that chapter; and
75.28 	(11) provide information, referral, and counseling services to those veterans who may 
75.29 	have suffered adverse health conditions as a result of possible exposure to chemical agents.; 
75.30 	and
75.31 	(12) in coordination with the Minnesota Association of County Veterans Service Officers, 
75.32 	develop a written disclosure statement for use by private providers of veterans benefits 
76.1 	services as required under section 197.6091. At a minimum, the written disclosure statement 
76.2 	shall include a signature line, contact information for the department, and a statement that 
76.3 	veterans benefits services are offered at no cost by federally chartered veterans service 
76.4 	organizations and by county veterans service officers.

76.5 	Sec. 4. Minnesota Statutes 2016, section 197.236, subdivision 9, is amended to read:
76.6 		Subd. 9.Burial fees. (a) The commissioner of veterans affairs shall establish a fee 
76.7 	schedule, which may be adjusted from time to time, for the interment of eligible spouses 
76.8 	and dependent children. The fees shall cover as nearly as practicable the actual costs of 
76.9 	interment, excluding the value of the plot.
76.10 	(b) Upon application, the commissioner may waive or reduce the burial fee in the case 
76.11 	of for an indigent eligible person. The commissioner shall develop a policy, eligibility 
76.12 	standards, and application form for requests to waive or reduce the burial fee to indigent 
76.13 	eligible applicants.
76.14 	(c) No plot or interment fees may be charged for the burial of service members who die 
76.15 	on active duty or eligible veterans, as defined in United States Code, title 38, section 101, 
76.16 	paragraph (2).

76.17 	Sec. 5. [197.6091] VETERANS BENEFITS SERVICES; DISCLOSURE 
76.18 	REQUIREMENTS.
76.19 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
76.20 	the meanings given.
76.21 	(b)(1) "Advertising" or "advertisement" means any of the following:
76.22 	(i) any written or printed communication made for the purpose of soliciting business for 
76.23 	veterans benefits appeal services, including but not limited to a brochure, letter, pamphlet, 
76.24 	newspaper, telephone listing, periodical, or other writing;
76.25 	(ii) any directory listing caused or permitted by a person and made available by that 
76.26 	person indicating that veterans benefits appeal services are being offered; or
76.27 	(iii) any radio, television, computer network, or similar airwave or electronic transmission 
76.28 	that solicits business for or promotes a person offering veterans benefits appeal services.
76.29 	(2) "Advertising" or "advertisement" does not include any of the following:
76.30 	(i) any printing or writing used on buildings, uniforms, or badges, where the purpose of 
76.31 	the writing is for identification; or
77.1 	(ii) any printing or writing in a memorandum or other communication used in the ordinary 
77.2 	course of business where the sole purpose of the writing is other than soliciting business 
77.3 	for veterans benefits appeal services.
77.4 	(c) "Veterans benefits appeal services" means services that a veteran might reasonably 
77.5 	require in order to appeal a denial of federal or state veterans benefits, including but not 
77.6 	limited to denials of disability, limited income, home loan, insurance, education and training, 
77.7 	burial and memorial, and dependent and survivor benefits.
77.8 	(d) "Veterans benefits services" means services that a veteran or a family member of a 
77.9 	veteran might reasonably use in order to obtain federal, state, or  county veterans benefits.
77.10 	(e) "Written disclosure statement" means the written disclosure statement developed by 
77.11 	the commissioner of veterans affairs pursuant to section 196.05, subdivision 1.
77.12 		Subd. 2.Advertising disclosure requirements. A person advertising veterans benefits 
77.13 	appeal services must conspicuously disclose in the advertisement, in similar type size or 
77.14 	voice-over, that veterans benefits appeal services are also offered at no cost by county 
77.15 	veterans service officers under sections 197.603 and 197.604.
77.16 		Subd. 3.Veterans benefits services disclosure requirements. A person who provides 
77.17 	veterans benefits services in exchange for compensation shall provide a written disclosure 
77.18 	statement to each client or prospective client. Before a person enters into an agreement to 
77.19 	provide veterans benefits services or accepts money or any other thing of value for the 
77.20 	provision of veterans benefits services, the person must obtain the signature of the client 
77.21 	on a written disclosure statement containing an attestation by the client that the client has 
77.22 	read and understands the written disclosure statement.
77.23 		Subd. 4.Violations; penalties. A person who fails to comply with this section is subject 
77.24 	to a civil penalty not to exceed $1,000 for each violation. Civil penalties shall be assessed 
77.25 	by the district court in an action initiated by the attorney general. For the purposes of 
77.26 	computing the amount of each civil penalty, each day of a continuing violation constitutes 
77.27 	a separate violation. Additionally, the attorney general may accept a civil penalty as 
77.28 	determined by the attorney general in settlement of an investigation of a violation of this 
77.29 	section regardless of whether an action has been filed under this section. Any civil penalty 
77.30 	recovered shall be deposited in the Support Our Troops account established under section 
77.31 	190.19.
77.32 		Subd. 5.Nonapplicability. This section does not apply to the owner or personnel of any 
77.33 	medium in which an advertisement appears or through which an advertisement is 
77.34 	disseminated.

78.1 	Sec. 6. Minnesota Statutes 2016, section 197.791, subdivision 2, is amended to read:
78.2 		Subd. 2.Program established. The Minnesota GI Bill program is established to provide 
78.3 	postsecondary educational assistance, apprenticeship and on-the-job training benefits, and 
78.4 	other professional and educational benefits to eligible Minnesota veterans and to the children 
78.5 	and spouses of deceased and severely disabled Minnesota veterans.
78.6 	The commissioner, in cooperation with eligible postsecondary educational institutions, 
78.7 	shall administer the program for the purpose of providing postsecondary educational 
78.8 	assistance to eligible persons in accordance with this section. Each public postsecondary 
78.9 	educational institution in the state must participate in the program and each private 
78.10 	postsecondary educational institution in the state is encouraged to participate in the program. 
78.11 	Any participating private institution may suspend or terminate its participation in the program 
78.12 	at the end of any semester or other academic term.

78.13 	Sec. 7. Minnesota Statutes 2016, section 197.791, subdivision 3, is amended to read:
78.14 		Subd. 3.Duties; responsibilities. (a) The commissioner shall establish policies and 
78.15 	procedures including, but not limited to, procedures for student application record keeping, 
78.16 	information sharing, payment of educational assistance benefits under subdivision 5, payment 
78.17 	of apprenticeship or on-the-job training benefits under subdivision 5a, payment of other 
78.18 	educational or professional benefits under subdivision 5, and other procedures the 
78.19 	commissioner considers appropriate and necessary for effective and efficient administration 
78.20 	of the program established in this section.
78.21 	(b) The commissioner may delegate part or all of the administrative procedures for the 
78.22 	program to responsible representatives of participating eligible institutions. The commissioner 
78.23 	may execute an interagency agreement with the Minnesota Office of Higher Education for 
78.24 	services the commissioner determines necessary to administer the program.

78.25 	Sec. 8. Minnesota Statutes 2016, section 197.791, subdivision 4, is amended to read:
78.26 		Subd. 4.Eligibility. (a) A person is eligible for educational assistance under this section
78.27 	subdivisions 5 and 5a if:
78.28 	(1) the person is:
78.29 	(i) a veteran who is serving or has served honorably in any branch or unit of the United 
78.30 	States armed forces at any time;
78.31 	(ii) a nonveteran who has served honorably for a total of five years or more cumulatively 
78.32 	as a member of the Minnesota National Guard or any other active or reserve component of 
79.1 	the United States armed forces, and any part of that service occurred on or after September 
79.2 	11, 2001;
79.3 	(iii) the surviving spouse or child of a person who has served in the military and who 
79.4 	has died as a direct result of that military service, only if the surviving spouse or child is 
79.5 	eligible to receive federal education benefits under United States Code, title 38, chapter 33, 
79.6 	as amended, or United States Code, title 38, chapter 35, as amended; or
79.7 	(iv) the spouse or child of a person who has served in the military at any time and who 
79.8 	has a total and permanent service-connected disability as rated by the United States Veterans 
79.9 	Administration, only if the spouse or child is eligible to receive federal education benefits 
79.10 	under United States Code, title 38, chapter 33, as amended, or United States Code, title 38, 
79.11 	chapter 35, as amended; and
79.12 	(2) the person receiving the educational assistance is a Minnesota resident, as defined 
79.13 	in section 136A.101, subdivision 8; and
79.14 	(3) the person receiving the educational assistance:
79.15 	(i) is an undergraduate or graduate student at an eligible institution;
79.16 	(ii) is maintaining satisfactory academic progress as defined by the institution for students 
79.17 	participating in federal Title IV programs;
79.18 	(iii) is enrolled in an education program leading to a certificate, diploma, or degree at 
79.19 	an eligible institution;
79.20 	(iv) has applied for educational assistance under this section prior to the end of the 
79.21 	academic term for which the assistance is being requested;
79.22 	(v) is in compliance with child support payment requirements under section 136A.121, 
79.23 	subdivision 2, clause (5); and
79.24 	(vi) has completed the Free Application for Federal Student Aid (FAFSA).
79.25 	(b) A person's eligibility terminates when the person becomes eligible for benefits under 
79.26 	section 135A.52.
79.27 	(c) To determine eligibility, the commissioner may require official documentation, 
79.28 	including the person's federal form DD-214 or other official military discharge papers; 
79.29 	correspondence from the United States Veterans Administration; birth certificate; marriage 
79.30 	certificate; proof of enrollment at an eligible institution; signed affidavits; proof of residency; 
79.31 	proof of identity; or any other official documentation the commissioner considers necessary 
79.32 	to determine eligibility.
80.1 	(d) The commissioner may deny eligibility or terminate benefits under this section to 
80.2 	any person who has not provided sufficient documentation to determine eligibility for the 
80.3 	program. An applicant may appeal the commissioner's eligibility determination or termination 
80.4 	of benefits in writing to the commissioner at any time. The commissioner must rule on any 
80.5 	application or appeal within 30 days of receipt of all documentation that the commissioner 
80.6 	requires. The decision of the commissioner regarding an appeal is final. However, an 
80.7 	applicant whose appeal of an eligibility determination has been rejected by the commissioner 
80.8 	may submit an additional appeal of that determination in writing to the commissioner at 
80.9 	any time that the applicant is able to provide substantively significant additional information 
80.10 	regarding the applicant's eligibility for the program. An approval of an applicant's eligibility 
80.11 	by the commissioner following an appeal by the applicant is not retroactively effective for 
80.12 	more than one year or the semester of the person's original application, whichever is later.
80.13 	(e) Upon receiving an application with insufficient documentation to determine eligibility, 
80.14 	the commissioner must notify the applicant within 30 days of receipt of the application that 
80.15 	the application is being suspended pending receipt by the commissioner of sufficient 
80.16 	documentation from the applicant to determine eligibility.

80.17 	Sec. 9. Minnesota Statutes 2016, section 197.791, subdivision 5, is amended to read:
80.18 		Subd. 5.Benefit Educational assistance amount. (a) On approval by the commissioner 
80.19 	of eligibility for the program, the applicant shall be awarded, on a funds-available basis, 
80.20 	the educational assistance under the program for use at any time according to program rules 
80.21 	at any eligible institution.
80.22 	(b) The amount of educational assistance in any semester or term for an eligible person 
80.23 	must be determined by subtracting from the eligible person's cost of attendance the amount 
80.24 	the person received or was eligible to receive in that semester or term from:
80.25 	(1) the federal Pell Grant;
80.26 	(2) the state grant program under section 136A.121; and
80.27 	(3) any federal military or veterans educational benefits including but not limited to the 
80.28 	Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, vocational 
80.29 	rehabilitation benefits, and any other federal benefits associated with the person's status as 
80.30 	a veteran, except veterans disability payments from the United States Veterans Administration 
80.31 	and payments made under the Veterans Retraining Assistance Program (VRAP).
80.32 	(c) The amount of educational assistance for any eligible person who is a full-time 
80.33 	student must not exceed the following:
81.1 	(1) $1,000 per semester or term of enrollment;
81.2 	(2) (1) $3,000 per state fiscal year; and
81.3 	(3) (2) $10,000 in a lifetime.
81.4 	(d) A person eligible under this subdivision may use the benefit amounts for the following 
81.5 	purposes:
81.6 	(1) licensing or certification tests, the successful completion of which demonstrates an 
81.7 	individual's possession of the knowledge or skill required to enter into, maintain, or advance 
81.8 	in employment in a predetermined and identified vocation or profession, provided that the 
81.9 	tests and the licensing or credentialing organizations or entities that offer the tests are 
81.10 	approved by the commissioner;
81.11 	(2) tests for admission to institutions of higher learning or graduate schools;
81.12 	(3) national tests providing an opportunity for course credit at institutions of higher 
81.13 	learning;
81.14 	(4) a preparatory course for a test that is required or used for admission to an institution 
81.15 	of higher education or a graduate program; and
81.16 	(5) any fee associated with the pursuit of a professional or educational objective specified 
81.17 	in clauses (1) to (4).
81.18 	(e) If an eligible person receives benefits under subdivision 5, the eligible person's 
81.19 	aggregate benefits under this subdivision and subdivision 5 must not exceed $10,000 in the 
81.20 	eligible person's lifetime.
81.21 	(f) If an eligible person receives benefits under subdivision 5a, the eligible person's 
81.22 	aggregate benefits under this subdivision and subdivision 5a must not exceed $10,000 in 
81.23 	the eligible person's lifetime.
81.24 	For a part-time student, the amount of educational assistance must not exceed $500 per 
81.25 	semester or term of enrollment. For the purpose of this paragraph, a part-time undergraduate 
81.26 	student is a student taking fewer than 12 credits or the equivalent for a semester or term of 
81.27 	enrollment and a part-time graduate student is a student considered part time by the eligible 
81.28 	institution the graduate student is attending. The minimum award for undergraduate and 
81.29 	graduate students is $50 per term.

82.1 	Sec. 10. Minnesota Statutes 2016, section 197.791, subdivision 5a, is amended to read:
82.2 		Subd. 5a.Apprenticeship and on-the-job training. (a) The commissioner, in 
82.3 	consultation with the commissioners of employment and economic development and labor 
82.4 	and industry, shall develop and implement an apprenticeship and on-the-job training program 
82.5 	to administer a portion of the Minnesota GI Bill program to pay benefit amounts to eligible 
82.6 	applicants persons, as provided in this subdivision.
82.7 	(b) An "eligible employer" means an employer operating a qualifying apprenticeship or 
82.8 	on-the-job training program that has been approved by the commissioner.
82.9 	(c) A person is eligible for apprenticeship and on-the-job training assistance under this 
82.10 	subdivision if the person meets the criteria established under subdivision 4, paragraphs
82.11 	paragraph (a), clause (1), and (c) to (e). The commissioner may determine eligibility as 
82.12 	provided in subdivision 4, paragraph (c), and may deny or terminate benefits as prescribed 
82.13 	under subdivision 4, paragraphs (d) and (e). The amount of assistance paid to or on behalf 
82.14 	of an eligible individual under this subdivision must not exceed the following:
82.15 	(1) $2,000 $3,000 per fiscal year for apprenticeship expenses;
82.16 	(2) $2,000 $3,000 per fiscal year for on-the-job training;
82.17 	(3) $1,000 for a job placement credit payable to an eligible employer upon hiring and 
82.18 	completion of six consecutive months' employment of a person receiving assistance under 
82.19 	this subdivision; and
82.20 	(4) $1,000 for a job placement credit payable to an eligible employer after a person 
82.21 	receiving assistance under this subdivision has been employed by the eligible employer for 
82.22 	at least 12 consecutive months as a full-time employee.
82.23 	No more than $3,000 $5,000 in aggregate benefits under this paragraph may be paid to or 
82.24 	on behalf of an individual in one fiscal year, and not more than $9,000 $10,000 in aggregate 
82.25 	benefits under this paragraph may be paid to or on behalf of an individual over any period 
82.26 	of time.
82.27 	(d) Assistance for apprenticeship expenses and on-the-job training is available for 
82.28 	qualifying programs, which must, at a minimum, meet the following criteria:
82.29 	(1) the training must be with an eligible employer;
82.30 	(2) the training must be documented and reported;
82.31 	(3) the training must reasonably be expected to lead to an entry-level position; and
82.32 	(4) the position must require at least six months of training to become fully trained.

APPENDIX 

Repealed Minnesota Statutes: 17-4736 

6.581 STATE AUDITOR ENTERPRISE FUND.Subdivision 1.State auditor enterprise fund.  
A state auditor enterprise fund is established in the state treasury. All amounts received for the costs and expenses of examinations performed under this chapter shall be credited to the fund. Amounts credited to the fund are annually appropriated to the state auditor to pay the costs and expenses related to the examinations performed, including, but not limited to, salaries, office overhead, equipment, authorized contracts, and other expenses. 

204B.48 VOTING EQUIPMENT GRANT ACCOUNT.Subdivision 1.Account created. 
A voting equipment grant account is created in the state treasury to provide grants to political subdivisions to purchase precinct based optical scan ballot tabulation equipment. The equipment must permit the voter to verify and correct any errors on the ballot, including both undervotes and overvotes. Any grants made by the federal government to the state to improve election administration or equipment must be credited to the account. 

Subd. 2.Application. 
The commissioner of administration may make a grant from the account to a political subdivision only after receiving an application from the political subdivision and a recommendation from the secretary of state concerning the application. The application must contain the following information: 

(1) the date the application is submitted; 

(2) the name of the political subdivision; 

(3) the name and title of the individual who prepared the application; 

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

(5) if the current system is an optical scan system, the date the system was acquired and at what cost; 

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

(7) the total amount of the grant requested; 

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

(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; 

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

(11) the proposed schedule for training election administrators and election judges to operate the new voting system; 

(12) a proposed plan to educate voters, the media, and the general public concerning the new voting system; 

(13) the names and contact information for the individuals and offices of the political subdivision responsible for communications and reporting to the commissioner of administration regarding the administration and implementation of the grant by the political subdivision, authorizing the purchase of voting systems, and implementing the training and education plan for the voting system; 

(14) whether the political subdivision has previously applied for a grant from the account and the disposition of that application; 

(15) a certified statement by the political subdivision that the grant will be used only to purchase precinct based optical scan ballot tabulation equipment, that the political subdivision will provide a dollar-for-dollar match that will not come from state or federal money, and that the political subdivision has insufficient resources to purchase the voting system without obtaining a grant from the account. 

The commissioner of administration must forward a copy of the application to the secretary of state. 

Subd. 3.Evaluation and approval. 
In evaluating the application, the commissioner of administration may consider only the information set forth in the application and is not subject to chapter 14. If the commissioner of administration 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 commissioner, after receiving the recommendation of the secretary of state, may approve the application. 

Subd. 4.Payment. 
The commissioner of administration may then pay the grant to the political subdivision after certifying that: 

(1) the grant will be used only to purchase the kind of ballot tabulation equipment prescribed by subdivision 1, which may include equipment that makes it possible for individuals with disabilities to cast a secret ballot; 

(2) the political subdivision to receive the grant has insufficient resources available to purchase the equipment; and 

(3) the recipient of the grant will provide a dollar-for-dollar match, which may not come from state or federal money. 

349A.08 LOTTERY PRIZES.Subd. 3.Prizes won by persons under age 18. 
The following provisions govern the payment of a lottery prize to a person under age 18: 

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

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

4501.0300CERTIFICATION, SIGNATURES, AND NOTARIZATION.   Subp. 3. Notarization. 
 The only documents that must be notarized are affidavits of contributions filed pursuant to Minnesota Statutes, section 10A.323, and sworn statements relating to independent expenditures filed pursuant to Minnesota Statutes, section 10A.20, subdivision 6a. 

4501.0500FILINGS, SUBMISSIONS, AND DISCLOSURES.   Subp. 2.Filing by facsimile transmission or electronic filing system.  
A document filed by facsimile transmission or electronic filing system has the same force and effect as filing an original paper document. Facsimile transmissions and the use of an electronic filing system are subject to items A to F. 

A.
 A facsimile transmission or electronic file received after the close of a business day is considered received at the beginning of the next business day. 

B.
 Use of an electronic filing system is optional. 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. 

C.
 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 Minnesota Statutes, chapter 13. 

D.
 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 Minnesota Statutes, chapter 10A. 

E.
 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 subpart 1. 

F.
 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 Minnesota Statutes, chapter 10A. 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. 

4503.0200ORGANIZATION OF POLITICAL COMMITTEES AND POLITICAL FUNDS.   Subp. 6.Depositories.  
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. Before registering, a political committee or political fund which expects to receive money or negotiable instruments must establish a checking, savings, or similar account in the name of "Campaign Fund of (name of candidate, committee, or fund)." 

4503.0300TERMINATION OF POLITICAL COMMITTEE OR POLITICAL FUND.   Subp. 4.Payment plan pending dissolution of inactive political committee or political fund.  
An inactive political committee or political fund that must dissolve according to Minnesota Statutes, section 10A.242, and that has liquidated its available assets to pay its debts may submit to the board a proposed payment schedule to settle any remaining debts. Upon approval of the schedule, the board may allow the committee or fund to defer dissolution until all debts are paid. 

4503.0400DISTRICT COURT JUDICIAL CANDIDATES.   Subpart 1.Donations in kind.  
Donations in kind to a candidate for district court judge which in aggregate exceed $100 must be disclosed in accordance with Minnesota Statutes, section 10A.20, subdivision 3, paragraph (b). 

4503.0500CONTRIBUTIONS.   Subp. 5.Contributions from Hennepin County registered associations.  
In lieu of registration with the board, an association registered with the Hennepin County filing officer under Minnesota Statutes, sections 383B.041 to 383B.058, that makes contributions of more than $100 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. 

4503.0500CONTRIBUTIONS.   Subp. 8.Value of contributions of automobile use.  
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. The use of an automobile that exceeds $20 in value a day is either an expenditure that must be reimbursed or a donation in kind from the individual who provided the use of the automobile. An automobile provided by an association must be valued at the fair market value for renting an equivalent automobile. 

4503.0700CONTRIBUTION LIMITS.   Subp. 2.Special election contribution limits.  
Election year contribution limits set forth in Minnesota Statutes, section 10A.27, apply to a special election cycle. 

4503.0700CONTRIBUTION LIMITS.   Subp. 3.Independent application of limits for special election.  
Contribution limits apply independently for election years, other years, and special election cycles. 

4503.1300GOVERNOR AND LIEUTENANT GOVERNOR.   Subp. 5.Return of contributions after merger.  
Funds transferred to the joint committee which result in aggregate contributions in excess of the applicable limits may be returned to the contributor within 60 days of the transfer of funds to the joint committee. 

4503.1400PUBLIC SUBSIDY AGREEMENTS.  Subp. 8.Affidavit of contributions for special elections.  
For a special election for which the filing period does not coincide with a general election, the candidate must submit the affidavit of contributions not later than five days after filing an affidavit of candidacy or nominating petition for the office sought. 

4503.1400PUBLIC SUBSIDY AGREEMENTS.  Subp. 9.Increase for first-time candidates.  
Candidates who qualify for first-time candidate status receive a ten percent increase in the campaign expenditure limit in all years of the applicable election cycle. 

4503.1450DISTRIBUTION OF GENERAL ACCOUNT PUBLIC SUBSIDY FUNDS.   Subpart 1.Agreement.  
The general account public subsidy agreement required in Minnesota Statutes, section 10A.31, subdivision 7, may be provided to candidates on a separate form, or incorporated into the public subsidy agreement. The agreement must require that the candidate spend or be legally obligated to spend at least 50 percent of the general account public subsidy payment by the end of the reporting period prior to the general election. The agreement must also provide that if the candidate does not meet this requirement, the candidate must repay the board the difference between the candidates general account public subsidy payment and the candidates total campaign expenditures as of the end of the reporting period prior to the general election. The agreement must further provide that the candidate must reimburse the board for any reasonable collection costs incurred in securing the repayment of the unused general account public subsidy payment. 

4503.1450DISTRIBUTION OF GENERAL ACCOUNT PUBLIC SUBSIDY FUNDS.   Subp. 3.Estimate of general account public subsidy payment.  
For purposes of determining a candidate's fulfillment of the terms of the agreement, the board must use the September 1 certification of available funds from the commissioner of the Department of Revenue to estimate the general account public subsidy payment for the candidate's office. Using first class mail, the board must inform each candidate eligible for a general account payment of the minimum amount that must be spent to comply with the terms of the agreement. 

4503.1600CONTRIBUTIONS AND SOLICITATIONS DURING LEGISLATIVE SESSION. 
If the board makes a public finding that there is probable cause to believe a violation of Minnesota Statutes, section 10A.273, has occurred, in lieu of pursuing or enforcing a judgment, the board may accept payment of any fine imposed and thereafter close the matter. 

4503.1700FILING OF 48-HOUR NOTICE. 
The 48-hour notice required under Minnesota Statutes, section 10A.20, subdivision 5, may be filed by facsimile transmission in addition to the other methods permitted by law. 

4503.1800REPORTING REQUIREMENTS. Subpart 1.Contributions.  
Legislative, statewide, and judicial candidates, party units, political committees and funds, and committees and funds to promote or defeat a ballot question must itemize contributions that in aggregate exceed $100 in a calendar year 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. 

Subp. 2.Expenditures and noncampaign disbursements.  
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 $100 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. 

4505.0100DEFINITIONS.   Subp. 3.Compensation in any month.  
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. 

For the purpose of supplementary statements of economic interest to be filed, "compensation in any month" includes compensation and honorariums 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. 

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. 

4505.0900FILING.  Subp. 2.Filing of more than one statement in any year.  
An individual who has filed a statement of economic interest within the calendar year shall file a supplementary statement within 14 days after filing an affidavit of candidacy or accepting employment or appointment to an office requiring the advice and consent of the senate. 

4505.0900FILING.  Subp. 3.Statement after period when no statement required.  
A public official or candidate, who previously filed a statement of economic interest and who is required to file a new statement of economic interest following a period when no statement was required, shall file an original statement. 

4505.0900FILING.  Subp. 4.Termination as a public official.  
An individual shall file a statement of economic interest to cover the period for which the individual served as a public official even though at the time the statement is filed, the individual is no longer holding that office as a public official. The statement of economic interest does not need to be filed if there have been no changes from the most recent statement of economic interest filed with the board. 

4505.0900FILING.  Subp. 5.Option.  
An individual whose term as a public official has ended after April 1 and before March 31 shall file either a supplementary statement on the next following April 15 through the last date of service or file a statement of termination as a public official through the last date of service. The latter statement may be filed at any time after the term ends and before the next following April 15. 

4505.0900FILING.  Subp. 6.Change of public official position.  
A public official who leaves one public official position and is appointed to another public official position within the year between the time when the individual filed either an original statement or a supplementary statement and April 15 of the following year shall file a termination statement for the former office within ten days after leaving that office. The individual shall file an original statement relative to the new office within the time imposed by Minnesota Statutes, section 10A.09, subdivision 1. 

4505.0900FILING.  Subp. 7.Reporting of securities.  
A public official must list the full name of each security with a value of $2,500 or more owned in part or in full by the public official at any time during the reporting period. 

4511.0500LOBBYIST REPORTING REQUIREMENTS.   Subp. 2.Reporting by multiple lobbyists representing the same entity.  
Items A to F apply if a single individual, association, political subdivision, or public higher education system is represented by more than one lobbyist. 

A.
 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. 

B.
 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 about whose activities the reporting lobbyist must disclose and are subject to the disclosure requirements of Minnesota Statutes, section 10A.04, 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. 

C.
 Lobbyists whose activities are accounted for by a reporting lobbyist are not required to file lobbyist disbursement reports. 

D.
 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. 

E.
 The reporting periods and due dates for a reporting lobbyist are those provided in Minnesota Statutes, section 10A.04, subdivision 3. The board must notify by certified mail or personal service each reporting lobbyist that fails to file a required report within seven days of a statutory filing date. Additionally, the board must notify by certified mail or personal service each lobbyist listed on the registration of the reporting lobbyist of the failure of the reporting lobbyist to file in a timely manner. Within ten business days of the date on which the notice was sent, each lobbyist must report disbursements to the board. If a lobbyist fails to file a report within ten business days of the date on which the notice was sent by the board, the board may impose a late filing fee of $5 per day, not to exceed a maximum of $100, commencing with the 11th day after the notice was sent. 

F.
 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 board must send notice by certified mail or personal service to a lobbyist who failed to provide the required disbursement information to the reporting lobbyist. The notice must require that the lobbyist file an individual lobbyist disbursement report within ten business days of the mailing of the notice. If a lobbyist fails to file a report within ten business days of the mailing of the notice, the board may impose a late filing fee of $5 per day, not to exceed a maximum of $100, commencing with the 11th day after receiving notice. 

4512.0100DEFINITIONS.   Subp. 2.Field of specialty.  
"Field of specialty" means a vocation, profession, trade, craft, or avocation of the individual. 

4512.0100DEFINITIONS.   Subp. 4.Individual services.  
"Individual services" means services performed by an official outside of official duties. 

4512.0100DEFINITIONS.   Subp. 5.Plaque or similar memento.  
"Plaque or similar memento" means a decorative item with an inscription recognizing an individual for an accomplishment. 

4525.0210DETERMINATIONS PRIOR TO FORMAL INVESTIGATION.   Subpart 1.Preparation for prima facie determination.  
After a complaint is filed, the executive director must follow the notice provisions in Minnesota Statutes, section 10A.022, subdivision 3, with regard to the respondent's right to submit written arguments addressing the prima facie determination. 

Upon the expiration of the time provided for the respondent to submit written argument, the executive director must submit the matter to the board member who will make the determination or to all board members if the full board will make the determination. The submission must include the complaint, any response submitted by the respondent, and an analysis of the allegations of the complaint and the violations that it alleges.