1.1 	A bill for an act
1.2 	relating to the operation of state government; providing funding for the legislature, 
1.3 	constitutional officers and other agencies, boards, councils, commissions, and 
1.4 	state entities; changing certain state government programs; changing powers and 
1.5 	duties of certain state officers; repealing the Minnesota Sunset Act; requiring the 
1.6 	chair of the Legislative Advisory Commission alternate between a member of 
1.7 	the senate and a member of the house of representatives; requiring the chair of 
1.8 	the Legislative Advisory Commission be a senate member in 2013; allowing 
1.9 	the Legislative Advisory Commission to accept grants and gifts related to the 
1.10 	commission's duties; requiring data security audits by the legislative auditor 
1.11 	under certain circumstances; requiring notification of the legislative auditor when 
1.12 	public resources have been used unlawfully or government data has been accessed 
1.13 	unlawfully; allowing the secretary of state authority to accept funds from local 
1.14 	government units for election systems enhancements and to receive certain funds 
1.15 	for the address confidentiality program; allowing the state auditor to change a 
1.16 	onetime user fee for a small city and town accounting system software; changing 
1.17 	provisions for bid solicitations and proposals; changing certain provisions for 
1.18 	service contracts and the solicitation process; requiring a determination of the 
1.19 	information technology cost for agency technology cost for agency technology 
1.20 	projects; expanding E-Government initiative and establishing the E-Government 
1.21 	Advisory Council; allowing a convenience fee for users of NorthStar or online 
1.22 	government information services; changing certain audit provisions relating to 
1.23 	duties of the state auditor and the legislative auditor; allowing the state auditor 
1.24 	to bill counties and political subdivisions periodically for services rendered; 
1.25 	establishing a state auditor enterprise fund; modifying provisions for general 
1.26 	noncommercial radio station and equipment grants; removing investigative 
1.27 	powers of the Mississippi River Parkway Commission; changing a paid military 
1.28 	leave provision; modifying provisions in the Veterans Service Office grant 
1.29 	program; changing provisions in the Minnesota GI Bill program; establishing 
1.30 	presumption of rehabilitation by an honorable discharge status from military 
1.31 	service following a prior offense; providing for a bid preference for contracts 
1.32 	for veteran-owned small businesses; allowing active duty service members to 
1.33 	take a peace officer reciprocity exam; making Department of Revenue changes; 
1.34 	establishing electronic filing requirements; establishing an automobile theft 
1.35 	prevention surcharge; requesting the legislative auditor conduct a data security of 
1.36 	the Department of Revenue's use of debit cards for tax refunds; adjusting certain 
1.37 	salary groups; making compensation council changes; requiring a compensation 
1.38 	study; adjusting constitutional officers salaries; requiring reports; appropriating 
1.39 	money;amending Minnesota Statutes 2012, sections 3.30, subdivision 2; 3.303, 
2.1 	by adding a subdivision; 3.85, subdivisions 8, 9; 3.855, subdivision 3; 3.885, by 
2.2 	adding a subdivision; 3.971, subdivision 6, by adding subdivisions; 6.48; 6.56, 
2.3 	subdivision 2; 13.591, subdivision 3; 15A.0815, subdivisions 1, 2, 3, 5; 15A.082, 
2.4 	subdivisions 1, 2, 3; 16A.10, subdivision 1c; 16A.82; 16C.02, subdivision 
2.5 	13; 16C.06, subdivision 2; 16C.09; 16C.10, subdivision 6; 16C.145; 16C.33, 
2.6 	subdivision 3; 16C.34, subdivision 1; 16E.07, by adding a subdivision; 32C.04; 
2.7 	43A.17, subdivisions 1, 3; 65B.84, subdivision 1; 129D.14, subdivisions 2, 3; 
2.8 	129D.15; 129D.155; 161.1419, subdivision 3; 192.26; 197.608, subdivisions 
2.9 	1, 3, 4, 5, 6; 197.791, subdivisions 4, 5; 254A.035, subdivision 2; 254A.04; 
2.10 	256B.093, subdivision 1; 260.835, subdivision 2; 270C.69, subdivision 1; 
2.11 	289A.20, subdivisions 2, 4; 289A.26, subdivision 2a; 295.55, subdivision 
2.12 	4; 297F.09, subdivision 7; 297G.09, subdivision 6; 297I.30, by adding a 
2.13 	subdivision; 297I.35, subdivision 2; 364.03, subdivision 3; 469.3201; 471.699; 
2.14 	473.843, subdivision 3; 626.8517; Laws 2012, chapter 278, article 1, section 5; 
2.15 	article 2, sections 27; 34; proposing coding for new law in Minnesota Statutes, 
2.16 	chapters 5; 5B; 6; 16E; 297I; 471; repealing Minnesota Statutes 2012, sections 
2.17 	3.304, subdivisions 1, 5; 3.885, subdivision 10; 3D.01; 3D.02; 3D.03; 3D.04; 
2.18 	3D.045; 3D.05; 3D.06; 3D.065; 3D.07; 3D.08; 3D.09; 3D.10; 3D.11; 3D.12; 
2.19 	3D.13; 3D.14; 3D.15; 3D.16; 3D.17; 3D.18; 3D.19; 3D.20; 3D.21, subdivisions 
2.20 	2, 3, 4, 5, 6, 7, 8; 6.58; 43A.17, subdivision 4; 168A.40, subdivisions 3, 4; 
2.21 	197.608, subdivision 2a; 270C.145; Laws 2012, chapter 278, article 1, section 6.
2.22 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.23 	ARTICLE 1
2.24 	STATE GOVERNMENT APPROPRIATIONS

2.25	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 	
2.26 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.27 	agencies and for the purposes specified in this article. The appropriations are from the 
2.28 	general fund, or another named fund, and are available for the fiscal years indicated 
2.29 	for each purpose. The figures "2014" and "2015" used in this article mean that the 
2.30 	appropriations listed under them are available for the fiscal year ending June 30, 2014, or 
2.31 	June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal 
2.32 	year 2015. "The biennium" is fiscal years 2014 and 2015. 

2.33				APPROPRIATIONS
	
2.34				Available for the Year
	
2.35				Ending June 30
	
2.36					2014
		2015

2.37	Sec. 2. LEGISLATURE

2.38	Subdivision 1.Total Appropriation
 	$
	69,470,000
	$
	68,970,000

2.39	Appropriations by Fund
	
2.40		2014
	2015
	
2.41	General
	69,342,000
	68,842,000
	
2.42	Health Care Access
	128,000
	128,000
	
3.1 	The amounts that may be spent for each 
3.2 	purpose are specified in the following 
3.3 	subdivisions.

3.4	Subd. 2.Senate
 		23,133,000
		22,633,000

3.5	Subd. 3.House of Representatives
 		30,524,000
		30,524,000
	
3.6 	During the biennium ending June 30, 2015, 
3.7 	any revenues received by the house of 
3.8 	representatives from voluntary donations 
3.9 	to support broadcast or print media are 
3.10 	appropriated to the house of representatives.

3.11	Subd. 4.Legislative Coordinating Commission
 		15,813,000
		15,813,000

3.12	Appropriations by Fund
	
3.13	General
	15,685,000
	15,685,000
	
3.14	Health Care Access 
	128,000
	128,000
	
3.15 	From its funds, $10,000 each year is for 
3.16 	purposes of the legislators' forum, through 
3.17 	which Minnesota legislators meet with 
3.18 	counterparts from South Dakota, North 
3.19 	Dakota, and Manitoba to discuss issues of 
3.20 	mutual concern.
3.21 	The Legislative Coordinating Commission 
3.22 	is authorized to enter into an agreement 
3.23 	with the National Conference of State 
3.24 	Legislatures to provide the organization up to 
3.25 	$100,000 of its funds to support activities in 
3.26 	preparation for the annual conference to be 
3.27 	held in Minnesota in 2014. It is anticipated 
3.28 	that these funds will be returned to the 
3.29 	Legislative Coordinating Commission, and 
3.30 	are reappropriated to the commission.

3.31
3.32	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	3,353,000
	$
	3,353,000
	
3.33 	(a) This appropriation is to fund the Office of 
3.34 	the Governor and Lieutenant Governor.
4.1 	(b) $19,000 the first year and $19,000 the 
4.2 	second year are for necessary expenses in the 
4.3 	normal performance of the Governor's and 
4.4 	Lieutenant Governor's duties for which no 
4.5 	other reimbursement is provided.
4.6 	(c) By September 1 of each year, the 
4.7 	commissioner of management and budget 
4.8 	shall report to the chairs and ranking minority 
4.9 	members of the senate State Departments 
4.10 	and Veterans Affairs Budget Division and the 
4.11 	house of representatives State Government 
4.12 	Finance Committee any personnel costs 
4.13 	incurred by the Offices of the Governor and 
4.14 	Lieutenant Governor that were supported 
4.15 	by appropriations to other agencies during 
4.16 	the previous fiscal year. The Office of the 
4.17 	Governor shall inform the chairs and ranking 
4.18 	minority members of the committees before 
4.19 	initiating any interagency agreements.

4.20	Sec. 4. STATE AUDITOR
 	$
	2,070,000
	$
	2,121,000

4.21	Sec. 5. ATTORNEY GENERAL
 	$
	24,342,000
	$
	24,342,000

4.22	Appropriations by Fund
	
4.23		2014
	2015
	
4.24	General
	22,125,000
	22,125,000
	
4.25
4.26	State Government 
Special Revenue
	1,822,000
	1,822,000
	
4.27	Environmental
	145,000
	145,000
	
4.28	Remediation
	250,000
	250,000
	
4.29 	Of this appropriation, $65,000 in the first 
4.30 	year and $65,000 in the second year are 
4.31 	from the general fund for transfer to the 
4.32 	commissioner of public safety for a grant to 
4.33 	the Minnesota County Attorneys Association 
4.34 	for prosecutor and law enforcement training.

5.1	Sec. 6. SECRETARY OF STATE
 	$
	5,938,000
	$
	6,583,000
	
5.2 	Any funds available in the account 
5.3 	established in Minnesota Statutes, section 
5.4 	5.30, pursuant to the Help America Vote Act, 
5.5 	is appropriated for the purposes and uses 
5.6 	authorized by federal law.
5.7 	Redistricting Case. $355,000 the first year 
5.8 	is appropriated to the secretary of state to 
5.9 	be used to pay attorney fees as ordered by 
5.10 	the court in the legislative and congressional 
5.11 	redistricting case Hippert et al. v. Ritchie 
5.12 	et al., A11-152, and interest thereon. This 
5.13 	appropriation is available for expenditure the 
5.14 	day following final enactment.

5.15
5.16	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	1,000,000
	$
	1,000,000

5.17	Sec. 8. INVESTMENT BOARD
 	$
	139,000
	$
	139,000

5.18	Sec. 9. ADMINISTRATIVE HEARINGS
 	$
	7,732,000
	$
	7,506,000

5.19	Appropriations by Fund
	
5.20		2014
	2015
	
5.21	General
	482,000
	256,000
	
5.22
5.23	Workers' 
Compensation
	7,250,000
	7,250,000
	
5.24 	Campaign Violations Hearings. (a) 
5.25 	$130,000 the first year is appropriated from 
5.26 	the general fund for the cost of considering 
5.27 	complaints filed under Minnesota Statutes, 
5.28 	section 211B.32. Any amount of this 
5.29 	appropriation that remains unspent at the 
5.30 	end of the biennium must be canceled to 
5.31 	the general account of the state elections 
5.32 	campaign fund. The base for fiscal year 2016 
5.33 	is $130,000, to be available for the biennium, 
5.34 	under the same terms. 
6.1 	(b) $60,000 the first year is appropriated 
6.2 	from the general fund to cover the fiscal year 
6.3 	2013 costs of campaign violations hearings. 
6.4 	This is a onetime appropriation.
6.5 	Data Practices Hearings. $36,000 the first 
6.6 	year is appropriated from the general fund 
6.7 	to cover the fiscal year 2013 costs for data 
6.8 	practices hearings.

6.96.10
	Sec. 10. OFFICE OF ENTERPRISE 
TECHNOLOGY
 	$
	2,431,000
	$
	2,431,000
	
6.11 	During the biennium ending June 30, 2015, 
6.12 	the Office of Enterprise Technology must 
6.13 	not charge fees to a public noncommercial 
6.14 	educational television broadcast station 
6.15 	eligible for funding under Minnesota 
6.16 	Statutes, chapter 129D, for access to the 
6.17 	state broadcast infrastructure. If the access 
6.18 	fees not charged to public noncommercial 
6.19 	educational television broadcast stations total 
6.20 	more than $400,000 for the biennium, the 
6.21 	office may charge for access fees in excess 
6.22 	of these amounts.
6.23 	The commissioner of Minnesota management 
6.24 	and budget is authorized to provide cash 
6.25 	flow assistance of up to $110,000,000 from 
6.26 	the special revenue fund or other statutory 
6.27 	general funds as defined in Minnesota 
6.28 	Statutes, section 16A.671, subdivision 3, 
6.29 	paragraph (a), to the Office of Enterprise 
6.30 	Technology for the purpose of managing 
6.31 	revenue and expenditure differences during 
6.32 	the initial phases of IT consolidation. These 
6.33 	funds shall be repaid with interest by June 
6.34 	30, 2015.

7.1	Sec. 11. ADMINISTRATION

7.2	Subdivision 1.Total Appropriation
 	$
	 20,532,000
	$
	 20,202,000
	
7.3 	The amounts that may be spent for each 
7.4 	purpose are specified in the following 
7.5 	subdivisions.

7.6	Subd. 2.Government and Citizen Services
 		7,698,000
		7,668,000
	
7.7 	$74,000 the first year and $74,000 the second 
7.8 	year are for the Council on Developmental 
7.9 	Disabilities.
7.10 	Nellie Stone Johnson bust or statue.
7.11 	 $30,000 is to place a bust or statue of Nellie 
7.12 	Stone Johnson in the State Capitol Building. 
7.13 	This appropriation is contingent on receipt of 
7.14 	an equal nonstate match. The commissioner 
7.15 	must follow the process in Minnesota 
7.16 	Statutes, sections 138.67 to 138.70, in the 
7.17 	acquisition and placement of the bust or 
7.18 	statue. This appropriation is available until 
7.19 	expended.

7.20	Subd. 3.Strategic Management Services
 		1,757,000
		1,757,000

7.21	Subd. 4.Fiscal Agent
 		 11,077,000
		 10,777,000
	
7.22 	The appropriations under this section are to 
7.23 	the commissioner of administration for the 
7.24 	purposes specified.
7.25 	In-Lieu of Rent. $8,158,000 the first year 
7.26 	and $8,158,000 the second year are for 
7.27 	space costs of the legislature and veterans 
7.28 	organizations, ceremonial space, and 
7.29 	statutorily free space.
7.30 	Public Broadcasting. (a) $1,550,000 the 
7.31 	first year and $1,550,000 the second year are 
7.32 	for matching grants for public television.
8.1 	(b) $250,000 the first year and $250,000 
8.2 	the second year are for public television 
8.3 	equipment grants.
8.4 	(c) The equipment or matching grants in 
8.5 	paragraphs (a) and (b) must be allocated 
8.6 	after considering the recommendations of the 
8.7 	Minnesota Public Television Association.
8.8 	(d) $392,000 the first year and $392,000 the 
8.9 	second year are for community service grants 
8.10 	to public educational radio stations. This 
8.11 	appropriation may be used to disseminate 
8.12 	emergency information in foreign languages.
8.13 	(e) $117,000 the first year and $117,000 
8.14 	the second year are for equipment grants 
8.15 	to public educational radio stations. This 
8.16 	appropriation may be used for the repair, 
8.17 	rental, and purchase of equipment including 
8.18 	equipment under $500.
8.19 	(f) The grants in paragraphs (d) and (e) 
8.20 	must be allocated after considering the 
8.21 	recommendations of the Association of 
8.22 	Minnesota Public Education Radio Stations 
8.23 	under Minnesota Statutes, section 129D.14.
8.24 	(g) $610,000 the first year and $310,000 
8.25 	the second year are for equipment grants 
8.26 	to Minnesota Public Radio, Inc., including 
8.27 	upgrades to Minnesota's Emergency Alert 
8.28 	and AMBER Alert Systems.
8.29 	(h) Any unencumbered balance remaining 
8.30 	the first year for grants to public television or 
8.31 	radio stations does not cancel and is available 
8.32 	for the second year.

8.33
8.34
8.35	Sec. 12. CAPITOL AREA 
ARCHITECTURAL AND PLANNING 
BOARD
 	$
	335,000
	$
	335,000

9.1
9.2	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	28,144,000
	$
	20,369,000
	
9.3 	Statewide Budget System. $4,500,000 for 
9.4 	the biennium is to continue development 
9.5 	of the new statewide budget system and to 
9.6 	develop new capabilities including, but not 
9.7 	limited to, capital budget and fiscal notes.

9.8	Sec. 14. REVENUE

9.9	Subdivision 1.Total Appropriation
 	$
	140,673,000
	$
	140,137,000

9.10	Appropriations by Fund
	
9.11		2014
	2015
	
9.12	General
	136,438,000
	135,902,000
	
9.13	Health Care Access
	1,749,000
	1,749,000
	
9.14
9.15	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
9.16	Environmental
	303,000
	303,000

9.17	Subd. 2.Tax System Management
 		112,057,000
		111,521,000

9.18	Appropriations by Fund
	
9.19	General
	107,822,000
	107,286,000
	
9.20	Health Care Access
	1,749,000
	1,749,000
	
9.21
9.22	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
9.23	Environmental
	303,000
	303,000
	
9.24 	County Technical Assistance Grants. (a) 
9.25 	The commissioner of revenue may make 
9.26 	technical assistance grants to counties to 
9.27 	fund development, implementation, or 
9.28 	maintenance of data collection and data 
9.29 	processing systems that will facilitate 
9.30 	improved reporting of property tax data 
9.31 	on parcels and portions of parcels to 
9.32 	the commissioner for analytical and 
9.33 	administrative use. The grants may be made 
9.34 	in the order they are requested, or on some 
9.35 	other basis determined by the commissioner. 
9.36 	The commissioner shall determine whether to 
10.1 	require an application or recipient agreement 
10.2 	and shall determine the form and content of 
10.3 	the application or agreement.
10.4 	(b) $300,000 is appropriated to the 
10.5 	commissioner from the general fund in fiscal 
10.6 	year 2014 to make grants to counties as 
10.7 	provided in this section. This appropriation 
10.8 	is available for fiscal years 2014 and 2015 
10.9 	only, and does not become part of the base.
10.10 	Appropriation; Taxpayer Assistance. (a) 
10.11 	$200,000 in fiscal year 2014, and $200,000 
10.12 	in fiscal year 2015, are added to the base 
10.13 	appropriation of $200,000 each year. These 
10.14 	amounts are appropriated from the general 
10.15 	fund to the commissioner of revenue to 
10.16 	make grants to one or more nonprofit 
10.17 	organizations, qualifying under section 
10.18 	501(c)(3) of the Internal Revenue Code of 
10.19 	1986, to coordinate, facilitate, encourage, and 
10.20 	aid in the provision of taxpayer assistance 
10.21 	services. The unencumbered balance in the 
10.22 	first year does not cancel but is available for 
10.23 	the second year.
10.24 	(b) For purposes of this section, "taxpayer 
10.25 	assistance services" means accounting 
10.26 	and tax preparation services provided by 
10.27 	volunteers to low-income, elderly, and 
10.28 	disadvantaged Minnesota residents to help 
10.29 	them file federal and state income tax returns 
10.30 	and Minnesota property tax refund claims 
10.31 	and to provide personal representation before 
10.32 	the Department of Revenue and Internal 
10.33 	Revenue Service.

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

11.1	Sec. 15. GAMBLING CONTROL
 	$
	3,959,000
	$
	3,959,000
	
11.2 	These appropriations are from the lawful 
11.3 	gambling regulation account in the special 
11.4 	revenue fund.

11.5	Sec. 16. RACING COMMISSION
 	$
	899,000
	$
	899,000
	
11.6 	These appropriations are from the racing 
11.7 	and card playing regulation accounts in the 
11.8 	special revenue fund.

11.9	Sec. 17. STATE LOTTERY
 					
11.10 	Notwithstanding Minnesota Statutes, section 
11.11 	349A.10, subdivision 3, the operating budget 
11.12 	must not exceed $30,500,000 in fiscal year 
11.13 	2014 and $30,500,000 in fiscal year 2015.

11.14	Sec. 18. AMATEUR SPORTS COMMISSION
 	$
	266,000
	$
	266,000

11.15
11.16	Sec. 19. COUNCIL ON BLACK 
MINNESOTANS
 	$
	392,000
	$
	392,000

11.17
11.18	Sec. 20. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	354,000
	$
	354,000

11.19
11.20	Sec. 21. COUNCIL ON AFFAIRS OF 
CHICANO/LATINO PEOPLE
 	$
	375,000
	$
	375,000

11.21	Sec. 22. INDIAN AFFAIRS COUNCIL
 	$
	562,000
	$
	562,000

11.22
11.23	Sec. 23. MINNESOTA HISTORICAL 
SOCIETY

11.24	Subdivision 1.Total Appropriation
 	$
	21,783,000
	$
	21,649,000
	
11.25 	The amounts that may be spent for each 
11.26 	purpose are specified in the following 
11.27 	subdivisions.

11.28	Subd. 2.Operations and Programs
 		21,335,000
		21,335,000
	
12.1 	Notwithstanding Minnesota Statutes, section 
12.2 	138.668, the Minnesota Historical Society 
12.3 	may not charge a fee for its general tours at 
12.4 	the Capitol, but may charge fees for special 
12.5 	programs other than general tours.

12.6	Subd. 3.Fiscal Agent

12.7	(a) Minnesota International Center
		39,000
		39,000

12.8	(b) Minnesota Air National Guard Museum
		34,000
		-0-

12.9	(c) Minnesota Military Museum
		160,000
		60,000
	
12.10 	Of this amount, $60,000 each year is for an 
12.11 	archivist staff position. The base for fiscal 
12.12 	year 2016 is $100,000.

12.13	(d) Farmamerica
		115,000
		115,000

12.14	(e) Hockey Hall of Fame
		100,000
		100,000
	
12.15 	Balances Forward. Any unencumbered 
12.16 	balance remaining in this subdivision the first 
12.17 	year does not cancel but is available for the 
12.18 	second year of the biennium.

12.19	Sec. 24. BOARD OF THE ARTS

12.20	Subdivision 1.Total Appropriation
 	$
	7,514,000
	$
	7,514,000
	
12.21 	The amounts that may be spent for each 
12.22 	purpose are specified in the following 
12.23 	subdivisions.

12.24	Subd. 2.Operations and Services
 		575,000
		575,000

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

12.26	Subd. 4.Regional Arts Councils
 		2,139,000
		2,139,000
	
12.27 	Unencumbered Balance Available. Any 
12.28 	unencumbered balance remaining in this 
12.29 	section the first year does not cancel, but is 
12.30 	available for the second year of the biennium.
13.1 	Projects located in Minnesota; travel 
13.2 	restriction. Money appropriated in this 
13.3 	section and distributed as grants may only 
13.4 	be spent on projects located in Minnesota. 
13.5 	A recipient of a grant funded by an 
13.6 	appropriation in this section must not use 
13.7 	more than ten percent of the total grant for 
13.8 	costs related to travel outside the state of 
13.9 	Minnesota.

13.10
13.11	Sec. 25. MINNESOTA HUMANITIES 
CENTER
 	$
	291,000
	$
	251,000
	
13.12 	$40,000 the first year is for a grant to 
13.13 	Everybody Wins!-Minnesota, a Minnesota 
13.14 	501(c)(3) corporation, to operate a reading 
13.15 	program for Minnesota children.

13.16
13.17	Sec. 26. SCIENCE MUSEUM OF 
MINNESOTA
 	$
	1,079,000
	$
	1,079,000

13.18
13.19	Sec. 27. GENERAL CONTINGENT 
ACCOUNTS
 	$
	1,000,000
	$
	500,000

13.20	Appropriations by Fund
	
13.21		2014
	2015
	
13.22	General
	500,000
	-0-
	
13.23
13.24	State Government 
Special Revenue
	400,000
	400,000
	
13.25
13.26	Workers' 
Compensation
	100,000
	100,000
	
13.27 	(a) The appropriations in this section 
13.28 	may only be spent with the approval of 
13.29 	the governor after consultation with the 
13.30 	Legislative Advisory Commission pursuant 
13.31 	to Minnesota Statutes, section 3.30.
13.32 	(b) If an appropriation in this section for 
13.33 	either year is insufficient, the appropriation 
13.34 	for the other year is available for it.
14.1 	(c) If a contingent account appropriation 
14.2 	is made in one fiscal year, it should be 
14.3 	considered a biennial appropriation.

14.4	Sec. 28. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
14.5 	These appropriations are to be spent by the 
14.6 	commissioner of management and budget 
14.7 	according to Minnesota Statutes, section 
14.8 	3.736, subdivision 7. If the appropriation for 
14.9 	either year is insufficient, the appropriation 
14.10 	for the other year is available for it.

14.11
14.12	Sec. 29. MINNESOTA STATE RETIREMENT 
SYSTEM

14.13	Subdivision 1.Total Appropriation
 	$
	3,891,000
	$
	3,964,000
	
14.14 	The amounts that may be spent for each 
14.15 	purpose are specified in the following 
14.16 	subdivisions.

14.17	Subd. 2.Legislators
 		3,406,000
		3,475,000
	
14.18 	Under Minnesota Statutes, sections 3A.03, 
14.19 	subdivision 2; 3A.04, subdivisions 3 and 4; 
14.20 	and 3A.115.

14.21	Subd. 3. Constitutional Officers
 		485,000
		489,000
	
14.22 	Under Minnesota Statutes, section 352C.001, 
14.23 	if an appropriation in this section for either 
14.24 	year is insufficient, the appropriation for the 
14.25 	other year is available for it.

14.26
14.27	Sec. 30. MINNEAPOLIS EMPLOYEES 
RETIREMENT FUND DIVISION ACCOUNT
 	$
	24,000,000
	$
	24,000,000
	
14.28 	These amounts are estimated to be needed 
14.29 	under Minnesota Statutes, section 353.505.

14.30
14.31	Sec. 31. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	15,454,000
	$
	15,454,000
	
15.1 	The amounts estimated to be needed are as 
15.2 	follows:
15.3 	Special Direct State Aid. $12,954,000 the 
15.4 	first year and $12,954,000 the second year 
15.5 	are for special direct state aid authorized 
15.6 	under Minnesota Statutes, section 354A.12, 
15.7 	subdivisions 3a and 3c.
15.8 	Special Direct State Matching Aid.
15.9 	 $2,500,000 the first year and $2,500,000 
15.10 	the second year are for special direct state 
15.11 	matching aid authorized under Minnesota 
15.12 	Statutes, section 354.435.

15.13
15.14	Sec. 32. ST. PAUL TEACHERS 
RETIREMENT FUND
 	$
	2,827,000
	$
	2,827,000
	
15.15 	The amounts estimated to be needed for 
15.16 	special direct state aid to first class city 
15.17 	teachers retirement funds authorized under 
15.18 	Minnesota Statutes, section 354A.12, 
15.19 	subdivisions 3a and 3c.

15.20
15.21	Sec. 33. DULUTH TEACHERS 
RETIREMENT FUND
 	$
	346,000
	$
	346,000
	
15.22 	The amounts estimated to be needed for 
15.23 	special direct state aid to first class city 
15.24 	teachers retirement funds authorized under 
15.25 	Minnesota Statutes, section 354A.12, 
15.26 	subdivisions 3a and 3c.

15.27	Sec. 34. MILITARY AFFAIRS

15.28	Subdivision 1.Total Appropriation
 	$
	19,368,000
	$
	19,368,000
	
15.29 	The amounts that may be spent for each 
15.30 	purpose are specified in the following 
15.31 	subdivisions.

15.32	Subd. 2.Maintenance of Training Facilities
 		6,661,000
		6,661,000

15.33	Subd. 3.General Support
 		2,359,000
		2,359,000

16.1	Subd. 4.Enlistment Incentives
 		10,348,000
		10,348,000
	
16.2 	If appropriations for either year of the 
16.3 	biennium are insufficient, the appropriation 
16.4 	from the other year is available. The 
16.5 	appropriations for enlistment incentives are 
16.6 	available until expended.

16.7	Sec. 35. VETERANS AFFAIRS

16.8	Subdivision 1.Total Appropriation
 	$
	63,508,000
	$
	62,753,000
	
16.9 	The amounts that may be spent for each 
16.10 	purpose are specified in the following 
16.11 	subdivisions.

16.12	Subd. 2.Veterans Services
 		16,051,000
		16,240,000
	
16.13 	Veterans Service Organizations. $353,000 
16.14 	each year is for grants to the following 
16.15 	congressionally chartered veterans service 
16.16 	organizations, as designated by the 
16.17 	commissioner: Disabled American Veterans, 
16.18 	Military Order of the Purple Heart, the 
16.19 	American Legion, Veterans of Foreign Wars, 
16.20 	Vietnam Veterans of America, AMVETS, 
16.21 	and Paralyzed Veterans of America. This 
16.22 	funding must be allocated in direct proportion 
16.23 	to the funding currently being provided by 
16.24 	the commissioner to these organizations.
16.25 	Minnesota Assistance Council for 
16.26 	Veterans. $750,000 each year is for a grant 
16.27 	to the Minnesota Assistance Council for 
16.28 	Veterans to provide assistance throughout 
16.29 	Minnesota to veterans and their families who 
16.30 	are homeless or in danger of homelessness, 
16.31 	including assistance with the following:
16.32 	(1) utilities;
16.33 	(2) employment; and
17.1 	(3) legal issues.
17.2 	The assistance authorized under this 
17.3 	paragraph must be made only to veterans who 
17.4 	have resided in Minnesota for 30 days prior 
17.5 	to application for assistance and according 
17.6 	to other guidelines established by the 
17.7 	commissioner. In order to avoid duplication 
17.8 	of services, the commissioner must ensure 
17.9 	that this assistance is coordinated with all 
17.10 	other available programs for veterans.
17.11 	IT Upgrades. $618,000 in fiscal year 2014 
17.12 	and $382,000 in fiscal year 2015 are to 
17.13 	improve and modernize the department's 
17.14 	information technology systems. These 
17.15 	funds shall be transferred to the Office of 
17.16 	Enterprise Technology. This is a onetime 
17.17 	transfer and is available until spent.
17.18 	Veterans Cemetery in Fillmore County.
17.19 	 $425,000 in fiscal year 2015 is for operation 
17.20 	of the new veterans cemetery in Fillmore 
17.21 	County. This amount is added to the 
17.22 	program's base funding.
17.23 	Honor Guards. $200,000 each year is 
17.24 	for compensation for honor guards at 
17.25 	the funerals of veterans under Minnesota 
17.26 	Statutes, section 197.231. This amount is 
17.27 	added to the program's base funding.
17.28 	Minnesota GI Bill. $200,000 each year is 
17.29 	for the costs of administering the Minnesota 
17.30 	GI Bill postsecondary educational benefits, 
17.31 	on-the-job training, and apprenticeship 
17.32 	program under Minnesota Statutes, section 
17.33 	197.791. Of this amount, $100,000 is for 
17.34 	transfer to the Office of Higher Education.
18.1 	Gold Star Program. $100,000 each year 
18.2 	is for administering the Gold Star Program 
18.3 	for surviving family members of deceased 
18.4 	veterans. This amount is added to the 
18.5 	program's base funding.
18.6 	County Veterans Service Office.
18.7 	 $1,100,000 each year is for funding the 
18.8 	County Veterans Service Office grant 
18.9 	program under Minnesota Statutes, section 
18.10 	197.608.
18.11 	Veterans Paramedic Apprenticeship 
18.12 	Program. All unspent funds, estimated to 
18.13 	be $110,000, from the Veterans Paramedic 
18.14 	Apprenticeship Program, from the onetime 
18.15 	appropriation under Laws 2009, chapter 79, 
18.16 	article 13, section 7, are canceled to the 
18.17 	general fund on July 1, 2013.

18.18	Subd. 3.Veterans Homes
 		47,457,000
		46,513,000
	
18.19 	Veterans Homes Special Revenue Account.
18.20 	 The general fund appropriations made to the 
18.21 	department may be transferred to a veterans 
18.22 	homes special revenue account in the special 
18.23 	revenue fund in the same manner as other 
18.24 	receipts are deposited according to Minnesota 
18.25 	Statutes, section 198.34, and are appropriated 
18.26 	to the department for the operation of 
18.27 	veterans homes facilities and programs.
18.28 	IT Upgrades. $2,472,000 in fiscal year 2014 
18.29 	and $1,528,000 in fiscal year 2015 are to 
18.30 	improve and modernize the department's 
18.31 	information technology systems. These 
18.32 	funds shall be transferred to the Office of 
18.33 	Enterprise Technology. This is a onetime 
18.34 	transfer and is available until spent.
19.1 	Maximize Federal Reimbursements.
19.2 	 The department will seek opportunities 
19.3 	to maximize federal reimbursements of 
19.4 	Medicare-eligible expenses and will provide 
19.5 	annual reports to the commissioner of 
19.6 	management and budget on the federal 
19.7 	Medicare reimbursements received. 
19.8 	Contingent upon future federal Medicare 
19.9 	receipts, reductions to the homes' general 
19.10 	fund appropriation may be made.

19.11 	ARTICLE 2
19.12 	MINNESOTA SUNSET ACT

19.13 	Section 1. Minnesota Statutes 2012, section 3.885, is amended by adding a subdivision 
19.14 	to read:
19.15 		Subd. 11.Review of advisory groups. (a) By September 1 of each odd-numbered 
19.16 	year, the commission shall compile a list of executive branch advisory groups created in 
19.17 	statute. The commission may develop a schedule for review of advisory groups, or may 
19.18 	select particular groups for review. By December 31 of each odd-numbered year, the 
19.19 	commission may make recommendations on the continuing need for certain advisory 
19.20 	groups, and on any changes in laws governing a group that are needed to improve the 
19.21 	group's efficiency and effectiveness.
19.22 	(b) In conducting reviews of executive branch advisory groups, the commission 
19.23 	shall consider:
19.24 	(1) the mission of each group, and the extent to which the mission has been satisfied;
19.25 	(2) the extent to which each advisory group is effective in allowing persons 
19.26 	interested in the program or activity for which the group provides advice to have input 
19.27 	into the operations of the state agency implementing the program or activity;
19.28 	(3) the extent to which the existence of the advisory group provides state agencies 
19.29 	with an efficient and effective means of obtaining expert advice and opinions;
19.30 	(4) whether there are more efficient and effective methods of accomplishing the 
19.31 	mission  of the advisory group; and
19.32 	(5) whether the work of the advisory group overlaps or duplicates the work of 
19.33 	other groups.

19.34 	Sec. 2. Minnesota Statutes 2012, section 254A.035, subdivision 2, is amended to read:
20.1 		Subd. 2.Membership terms, compensation, removal and expiration. The 
20.2 	membership of this council shall be composed of 17 persons who are American Indians 
20.3 	and who are appointed by the commissioner. The commissioner shall appoint one 
20.4 	representative from each of the following groups: Red Lake Band of Chippewa Indians; 
20.5 	Fond du Lac Band, Minnesota Chippewa Tribe; Grand Portage Band, Minnesota 
20.6 	Chippewa Tribe; Leech Lake Band, Minnesota Chippewa Tribe; Mille Lacs Band, 
20.7 	Minnesota Chippewa Tribe; Bois Forte Band, Minnesota Chippewa Tribe; White Earth 
20.8 	Band, Minnesota Chippewa Tribe; Lower Sioux Indian Reservation; Prairie Island Sioux 
20.9 	Indian Reservation; Shakopee Mdewakanton Sioux Indian Reservation; Upper Sioux 
20.10 	Indian Reservation; International Falls Northern Range; Duluth Urban Indian Community; 
20.11 	and two representatives from the Minneapolis Urban Indian Community and two from the 
20.12 	St. Paul Urban Indian Community. The terms, compensation, and removal of American 
20.13 	Indian Advisory Council members shall be as provided in section 15.059. The council 
20.14 	expires June 30, 2014, or in accordance with section 3D.21, whichever is later.

20.15 	Sec. 3. Minnesota Statutes 2012, section 254A.04, is amended to read:
20.16 	254A.04 CITIZENS ADVISORY COUNCIL.
20.17 	There is hereby created an Alcohol and Other Drug Abuse Advisory Council to 
20.18 	advise the Department of Human Services concerning the problems of alcohol and 
20.19 	other drug dependency and abuse, composed of ten members. Five members shall be 
20.20 	individuals whose interests or training are in the field of alcohol dependency and abuse; 
20.21 	and five members whose interests or training are in the field of dependency and abuse of 
20.22 	drugs other than alcohol. The terms, compensation and removal of members shall be as 
20.23 	provided in section 15.059. The council expires June 30, 2014, or in accordance with 
20.24 	section 3D.21, whichever is later. The commissioner of human services shall appoint 
20.25 	members whose terms end in even-numbered years. The commissioner of health shall 
20.26 	appoint members whose terms end in odd-numbered years.

20.27 	Sec. 4. Minnesota Statutes 2012, section 256B.093, subdivision 1, is amended to read:
20.28 		Subdivision 1.State traumatic brain injury program. The commissioner of 
20.29 	human services shall:
20.30 	(1) maintain a statewide traumatic brain injury program;
20.31 	(2) supervise and coordinate services and policies for persons with traumatic brain 
20.32 	injuries;
20.33 	(3) contract with qualified agencies or employ staff to provide statewide 
20.34 	administrative case management and consultation;
21.1 	(4) maintain an advisory committee to provide recommendations in reports to the 
21.2 	commissioner regarding program and service needs of persons with brain injuries;
21.3 	(5) investigate the need for the development of rules or statutes for the brain injury 
21.4 	home and community-based services waiver;
21.5 	(6) investigate present and potential models of service coordination which can be 
21.6 	delivered at the local level; and
21.7 	(7) the advisory committee required by clause (4) must consist of no fewer than ten 
21.8 	members and no more than 30 members. The commissioner shall appoint all advisory 
21.9 	committee members to one- or two-year terms and appoint one member as chair. 
21.10 	Notwithstanding section 15.059, subdivision 5, the advisory committee does not terminate 
21.11 	until June 30, 2014, or in accordance with section 3D.21, whichever is later.

21.12 	Sec. 5. Minnesota Statutes 2012, section 260.835, subdivision 2, is amended to read:
21.13 		Subd. 2.Expiration. Notwithstanding section 15.059, subdivision 5, the American 
21.14 	Indian Child Welfare Advisory Council expires June 30, 2014, or in accordance with 
21.15 	section 3D.21, whichever is later.

21.16 	Sec. 6. Laws 2012, chapter 278, article 1, section 5, is amended to read:
21.17 	Sec. 5. COUNCIL ON BLACK MINNESOTANS.
 21.18 	The Office of the Legislative Auditor should conduct a financial audit of the 
21.19 	Council on Black Minnesotans by December 1, 2013. In its next report to the Sunset 
21.20 	Advisory Commission governor and legislature under Minnesota Statutes, section 3.9225, 
21.21 	subdivision 7, the Council on Black Minnesotans must respond to any issues raised in this 
21.22 	audit and to issues raised in previous audits.

21.23 	Sec. 7. Laws 2012, chapter 278, article 2, section 27, is amended to read:
21.24 	Sec. 27. HEALTH-RELATED LICENSING BOARDS REPORTING 
21.25 	OBLIGATIONS.
 21.26 	(a) By January 15, 2013, the health-related boards and the commissioner of health, 
21.27 	as the regulator for occupational therapy practitioners, speech-language pathologists, 
21.28 	audiologists, and hearing instrument dispensers, shall jointly study and submit draft 
21.29 	legislation to the Sunset Commission and the chairs and ranking minority members of 
21.30 	the legislative committees with jurisdiction over health and human services developing 
21.31 	consistent reporting requirements that require institutions, professional societies, other 
21.32 	licensed professionals, courts, insurers, and other entities to report conduct constituting 
21.33 	grounds for disciplinary action to the respective regulatory entity. The study and draft 
22.1 	legislation shall include a self-reporting requirement that requires the licensed individual 
22.2 	to report to the respective regulatory entity any action that would require a report to be 
22.3 	filed by another specified entity. The study and draft legislation shall also include penalties 
22.4 	that may be imposed for failure to report.
22.5 	(b) Health-related boards with existing statutory reporting obligations shall 
22.6 	participate to ensure that the existing reporting requirements are consistent with the 
22.7 	recommended requirements and draft legislation.

22.8 	Sec. 8. Laws 2012, chapter 278, article 2, section 34, is amended to read:
22.9 	Sec. 34. BOARD OF MEDICAL PRACTICE REVIEW.
 22.10 	The legislative auditor is requested to conduct a special investigation of the 
22.11 	Minnesota Board of Medical Practice and its implementation of the Medical Practice 
22.12 	Act. The legislative auditor is requested to submit the results of the investigation to the 
22.13 	Legislative Audit Commission, the Sunset Advisory Commission, and the chairs and 
22.14 	ranking minority members of the senate and house of representatives policy committees 
22.15 	having jurisdiction over the board by January 1, 2013.

22.16 	Sec. 9. REVISOR'S INSTRUCTION.
 22.17 	The revisor of statutes shall delete all references to "the Sunset Advisory 
22.18 	Commission" wherever they appear in Minnesota Statutes, and shall make other changes 
22.19 	as necessary in Minnesota Statutes as a result of the enactment of this article.

22.20 	Sec. 10.  REPEALER.
 22.21 	(a)  Minnesota Statutes 2012, sections 3D.01; 3D.02; 3D.03; 3D.04; 3D.045; 3D.05; 
22.22 	3D.06; 3D.065; 3D.07; 3D.08; 3D.09; 3D.10; 3D.11; 3D.12; 3D.13; 3D.14; 3D.15; 3D.16; 
22.23 	3D.17; 3D.18; 3D.19; 3D.20; and 3D.21, subdivisions 2, 3, 4, 5, 6, 7, and 8, are repealed.
22.24 	(b)  Laws 2012, chapter 278, article 1, section 6, is  repealed.

22.25 	Sec. 11. EFFECTIVE DATE.
 22.26 	Sections 1 to 10 are effective the day following final enactment.

22.27 	ARTICLE 3
22.28 	STATE GOVERNMENT OPERATIONS

22.29 	Section 1. Minnesota Statutes 2012, section 3.30, subdivision 2, is amended to read:
22.30 		Subd. 2.Members; duties. (a) The majority leader of the senate or a designee, the 
22.31 	chair of the senate Committee on Finance, and the chair of the senate Division of Finance 
23.1 	responsible for overseeing the items being considered by the commission, the speaker of 
23.2 	the house or a designee, the chair of the house of representatives Committee on Ways and 
23.3 	Means, and the chair of the appropriate finance committee, or division of the house of 
23.4 	representatives committee responsible for overseeing the items being considered by the 
23.5 	commissioner, constitute the Legislative Advisory Commission. The division chair of the 
23.6 	Finance Committee in the senate and the division chair of the appropriate finance committee 
23.7 	or division in the house of representatives shall rotate according to the items being 
23.8 	considered by the commission. If any of the members elect not to serve on the commission, 
23.9 	the house of which they are members, if in session, shall select some other member for 
23.10 	the vacancy. If the legislature is not in session, vacancies in the house of representatives 
23.11 	membership of the commission shall be filled by the last speaker of the house or, if the 
23.12 	speaker is not available, by the last chair of the house of representatives Rules Committee, 
23.13 	and by the last senate Committee on Committees or other appointing authority designated 
23.14 	by the senate rules in case of a senate vacancy. The commissioner of management and 
23.15 	budget shall be secretary of the commission and keep a permanent record and minutes of 
23.16 	its proceedings, which are public records. The commissioner of management and budget 
23.17 	shall transmit, under section 3.195, a report to the next legislature of all actions of the 
23.18 	commission. Members shall receive traveling and subsistence expenses incurred attending 
23.19 	meetings of the commission. The commission shall meet from time to time upon the call of 
23.20 	the governor or upon the call of the secretary at the request of two or more of its members. 
23.21 	A recommendation of the commission must be made at a meeting of the commission 
23.22 	unless a written recommendation is signed by all the members entitled to vote on the item.
23.23 	(b) The chair alternates between a member of the senate and a member of the house 
23.24 	of representatives in January of each odd-numbered year.

23.25 	Sec. 2. Minnesota Statutes 2012, section 3.303, is amended by adding a subdivision to 
23.26 	read:
23.27 		Subd. 11.Acceptance of grants and gifts. The commission may accept gifts 
23.28 	and grants for purposes related to the duties of the commission. Money received by the 
23.29 	commission from gifts and grants is appropriated to the commission for purposes specified 
23.30 	in the gift or grant.

23.31 	Sec. 3. Minnesota Statutes 2012, section 3.85, subdivision 8, is amended to read:
23.32 		Subd. 8.Expenses, reimbursement. The members of the commission and its 
23.33 	assistants staff shall be reimbursed for all expenses actually and necessarily incurred in 
23.34 	the performance of their duties. Reimbursement for expenses incurred shall be made 
24.1 	under the rules governing state employees in accordance with policies adopted by the 
24.2 	Legislative Coordinating Commission.

24.3 	Sec. 4. Minnesota Statutes 2012, section 3.85, subdivision 9, is amended to read:
24.4 		Subd. 9.Expenses and reports. Expenses of the commission shall be approved 
24.5 	by the chair or another member as the rules of the commission provide. The expenses 
24.6 	shall then be paid like other state expenses. A general summary or statement of expenses 
24.7 	incurred by the commission and paid shall be made to the legislature by November 15 of 
24.8 	each even-numbered year.

24.9 	Sec. 5. Minnesota Statutes 2012, section 3.971, subdivision 6, is amended to read:
24.10 		Subd. 6.Financial audits. The legislative auditor shall audit the financial 
24.11 	statements of the state of Minnesota required by section 16A.50 and, as resources permit, 
24.12 	shall audit Minnesota State Colleges and Universities, the University of Minnesota, state 
24.13 	agencies, departments, boards, commissions, offices, courts, and other state organizations 
24.14 	subject to audit by the legislative auditor, including, but not limited to, the State 
24.15 	Agricultural Society, Agricultural Utilization Research Institute, Enterprise Minnesota, 
24.16 	Inc., Minnesota Historical Society, Labor Interpretive Center, Minnesota Partnership 
24.17 	for Action Against Tobacco, Metropolitan Sports Facilities Commission ClearWay 
24.18 	Minnesota, Minnesota Sports Facilities Authority, Metropolitan Airports Commission, and 
24.19 	Metropolitan Mosquito Control District. Financial audits must be conducted according to 
24.20 	generally accepted government auditing standards. The legislative auditor shall see that 
24.21 	all provisions of law respecting the appropriate and economic use of public funds and 
24.22 	other public resources are complied with and may, as part of a financial audit or separately, 
24.23 	investigate allegations of noncompliance.

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

24.25 	Sec. 6. Minnesota Statutes 2012, section 3.971, is amended by adding a subdivision to 
24.26 	read:
24.27 		Subd. 6a.Data security audits. The legislative auditor shall audit, as resources 
24.28 	permit, information and data systems supported with public funds and operated by an 
24.29 	organization listed in subdivision 6. The audits shall include an assessment of controls 
24.30 	designed to protect government data, particularly government data classified as not 
24.31 	public by chapter 13, from unauthorized access and use. The audits shall also include an 
24.32 	assessment of organizations' compliance with other applicable legal requirements related 
25.1 	to the operation of information and data systems and proper classification and protection 
25.2 	of the data contained in the systems.

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

25.4 	Sec. 7. Minnesota Statutes 2012, section 3.971, is amended by adding a subdivision to 
25.5 	read:
25.6 		Subd. 9.Obligation to notify the legislative auditor. The chief executive, 
25.7 	financial, or information officers of an organization subject to audit under this section, 
25.8 	must promptly notify the legislative auditor when the officer obtains information 
25.9 	indicating that public money or other public resources may have been used for an unlawful 
25.10 	purpose, or when the officer obtains information indicating that government data classified 
25.11 	by chapter 13 as not public may have been accessed or used unlawfully. As necessary, 
25.12 	the legislative auditor shall coordinate an investigation of the allegation with appropriate 
25.13 	law enforcement officials.

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

25.15 	Sec. 8. [5.38] AUTHORITY TO ACCEPT FUNDS.
25.16 	The secretary of state may enter into agreements with a local governmental unit to 
25.17 	provide a technological service or project to enhance the state's election system. The 
25.18 	secretary of state and the local governmental unit shall agree to the amount of consideration 
25.19 	to be paid under the agreement. In addition, the secretary of state may accept federal funds 
25.20 	for election purposes. If the secretary of state accepts federal funds and the terms of the 
25.21 	grant do not require the state to maintain its effort, section 3.3005 does not apply. If the 
25.22 	secretary of state accepts federal funds and the terms of the grant do require the state to 
25.23 	maintain its effort, section 3.3005 applies. The funds accepted under this section must be 
25.24 	deposited in accounts in the special revenue fund and are appropriated to the secretary of 
25.25 	state for the uses authorized by this section. The secretary of state shall report by January 
25.26 	15 each year to the chair and ranking minority members of the finance committees of the 
25.27 	house of representatives and the senate with jurisdiction over the secretary of state the total 
25.28 	amounts received in the preceding calendar year, the sources of those funds, and the uses 
25.29 	to which those funds were or will be put. For purposes of this section, "local governmental 
25.30 	unit" means a county, home rule charter or statutory city, town, or school district.

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

25.32 	Sec. 9. [5B.12] AUTHORITY TO ACCEPT FUNDS.
26.1 	Notwithstanding sections 16A.013 to 16A.016, the secretary of state may accept 
26.2 	funds contributed by individuals and may apply for grants from charitable foundations, to 
26.3 	be used for the address confidentiality program established in section 5B.03. In addition, 
26.4 	the secretary of state may apply for grants from the federal government for purposes of the 
26.5 	address confidentiality program. If the secretary of state accepts federal funds and the terms 
26.6 	of the grant do not require the state to maintain its effort, section 3.3005 does not apply. If 
26.7 	the secretary of state accepts federal funds and the terms of the grant do require the state to 
26.8 	maintain its effort, section 3.3005 applies. The funds accepted under this section must be 
26.9 	deposited in accounts in the special revenue fund and are appropriated to the secretary of 
26.10 	state for use in the address confidentiality program. The secretary of state shall report by 
26.11 	January 15 each year to the chair and ranking minority members of the finance committees 
26.12 	of the house of representatives and the senate with jurisdiction over the secretary of state the 
26.13 	total amounts received in the preceding calendar year, the sources of those funds, and the 
26.14 	uses to which those funds were or will be put. Any contributions from program participants 
26.15 	must be aggregated, and the names of program participants must not be reported.

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

26.17 	Sec. 10. [6.475] CITY AND TOWN ACCOUNTING SYSTEM SOFTWARE.
26.18 	(a) The state auditor may charge a onetime user fee to cities, towns, and other 
26.19 	government entities for the development, maintenance, and distribution of the small city 
26.20 	and town accounting system software. The amount of this fee shall be set by the state 
26.21 	auditor in consultation with the Minnesota Association of Townships, the League of 
26.22 	Minnesota Cities, and the Minnesota Association of Small Cities.
26.23 	(b) A city and town accounting systems (CTAS) account is established in the special 
26.24 	revenue fund.
26.25 	(c) Amounts received under paragraph (a) shall be credited to the CTAS account in 
26.26 	the special revenue fund and are appropriated to the state auditor for all costs associated 
26.27 	with the development, maintenance, and distribution of the small city and town accounting 
26.28 	system software. If at any time the small city and town accounting system software ceases 
26.29 	to be offered by the state auditor, any amount remaining in the CTAS account shall be 
26.30 	equitably refunded to users. The amount of the refund shall be set by the state auditor 
26.31 	in consultation with the Minnesota Association of Townships, the League of Minnesota 
26.32 	Cities, and the Minnesota Association of Small Cities, and the account shall be closed.

27.1 	Sec. 11. Minnesota Statutes 2012, section 6.48, is amended to read:
27.2 	6.48 EXAMINATION OF COUNTIES; COST, FEES.
27.3 	All the powers and duties conferred and imposed upon the state auditor shall be 
27.4 	exercised and performed by the state auditor in respect to the offices, institutions, public 
27.5 	property, and improvements of several counties of the state. At least once in each year, 
27.6 	if funds and personnel permit, the state auditor may visit, without previous notice, each 
27.7 	county and make a thorough examination of all accounts and records relating to the 
27.8 	receipt and disbursement of the public funds and the custody of the public funds and 
27.9 	other property. If the audit is performed by a private certified public accountant, the state 
27.10 	auditor may require additional information from the private certified public accountant as 
27.11 	the state auditor deems in the public interest. The state auditor may accept the audit or 
27.12 	make additional examinations as the state auditor deems to be in the public interest. The 
27.13 	state auditor shall prescribe and install systems of accounts and financial reports that shall 
27.14 	be uniform, so far as practicable, for the same class of offices. A copy of the report of 
27.15 	such examination shall be filed and be subject to public inspection in the office of the state 
27.16 	auditor and another copy in the office of the auditor of the county thus examined. The state 
27.17 	auditor may accept the records and audit, or any part thereof, of the Department of Human 
27.18 	Services in lieu of examination of the county social welfare funds, if such audit has been 
27.19 	made within any period covered by the state auditor's audit of the other records of the 
27.20 	county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance 
27.21 	in any office of such county, such report shall be filed with the county attorney of the 
27.22 	county, and the county attorney shall institute such civil and criminal proceedings as the 
27.23 	law and the protection of the public interests shall require.
27.24 	The county receiving any examination shall pay to the state general fund, 
27.25 	notwithstanding the provisions of section 16A.125, state auditor enterprise fund the total 
27.26 	cost and expenses of such examinations, including the salaries paid to the examiners 
27.27 	while actually engaged in making such examination. The state auditor on deeming it 
27.28 	advisable may bill counties, having a population of 200,000 or over, monthly periodically
27.29 	 for services rendered and the officials responsible for approving and paying claims shall 
27.30 	cause said bill to be promptly paid. The general state auditor enterprise fund shall be 
27.31 	credited with all collections made for any such examinations.

27.32 	Sec. 12. Minnesota Statutes 2012, section 6.56, subdivision 2, is amended to read:
27.33 		Subd. 2.Billings by state auditor. Upon the examination of the books, records, 
27.34 	accounts, and affairs of any political subdivision, as provided by law, such political 
27.35 	subdivision shall be liable to the state for the total cost and expenses of such examination, 
28.1 	including the salaries paid to the examiners while actually engaged in making such 
28.2 	examination. The state auditor may bill such political subdivision monthly periodically
28.3 	 for service rendered and the officials responsible for approving and paying claims are 
28.4 	authorized to pay said bill promptly. Said payments shall be without prejudice to any 
28.5 	defense against said claims that may exist or be asserted. The general state auditor 
28.6 	enterprise fund shall be credited with all collections made for any such examinations, 
28.7 	including interest payments made pursuant to subdivision 3.

28.8 	Sec. 13. [6.581] STATE AUDITOR ENTERPRISE FUND.
28.9 		Subdivision 1.State auditor enterprise fund.  A state auditor enterprise fund 
28.10 	is established in the state treasury. All amounts received for the costs and expenses of 
28.11 	examinations performed under this chapter shall be credited to the fund. Amounts credited 
28.12 	to the fund are annually appropriated to the state auditor to pay the costs and expenses 
28.13 	related to the examinations performed, including, but not limited to, salaries, office 
28.14 	overhead, equipment, authorized contracts, and other expenses.
28.15 		Subd. 2.Contract with private parties; equipment acquisition. When full-time 
28.16 	personnel are not available, the state auditor may contract with a private entity for 
28.17 	accounting and other technical services. Notwithstanding any law to the contrary, the 
28.18 	acquisition of equipment may include duplicating equipment to be used in producing the 
28.19 	reports issued by the Office of the State Auditor.
28.20 		Subd. 3.Schedule of charges. The state auditor may adjust the schedule of charges 
28.21 	for the examinations performed so that the charges are sufficient to cover all costs of the 
28.22 	examinations performed and that the aggregate charges collected are sufficient to pay all 
28.23 	salaries and other expenses, including the charges for the use of the equipment used in 
28.24 	connection with the reimbursable examinations performed, and the cost of contracting for 
28.25 	accounting and other technical services. The schedule of charges shall be based on an 
28.26 	estimate of the cost of performing reimbursable examinations including, but not limited 
28.27 	to, salaries, office overhead, equipment, authorized contracts, and other expenses. The 
28.28 	state auditor may allocate a proportionate part of the total costs to an hourly or daily 
28.29 	charge for each person or class of persons engaged in the performance of an examination. 
28.30 	The schedule of charges shall reflect an equitable charge for the expenses incurred in the 
28.31 	performance of any given examination. The state auditor shall review and adjust the 
28.32 	schedule of charges for the examinations performed at least annually. All schedules of 
28.33 	charges must be approved by the commissioner of management and budget before the 
28.34 	charges are adopted to ensure that the amount collected is sufficient to pay all the costs 
28.35 	connected with the examinations performed during the fiscal year.
29.1 		Subd. 4.Reports to legislature. At least 30 days before implementing increased 
29.2 	charges for examinations, the state auditor must report the proposed increases to the 
29.3 	chairs and ranking minority members of the committees in the house of representatives 
29.4 	and the senate with jurisdiction over the budget of the state auditor. By January 15 of 
29.5 	each odd-numbered year, the state auditor must report to the chairs and ranking minority 
29.6 	members of the legislative committees and divisions with primary jurisdiction over 
29.7 	the budget of the state auditor, a summary of state auditor enterprise fund anticipated 
29.8 	revenues, and expenditures for the biennium ending June 30 of that year. The report 
29.9 	must also include for the biennium the number of full-time equivalents paid by the fund, 
29.10 	any audit rate changes stated as a percentage, the number of audit reports issued, and 
29.11 	the number of counties audited.

29.12 	Sec. 14. Minnesota Statutes 2012, section 13.591, subdivision 3, is amended to read:
29.13 		Subd. 3.Business as vendor. (a) Data submitted by a business to a government 
29.14 	entity in response to a request for bids as defined in section 16C.02, subdivision 11, are 
29.15 	private or nonpublic until the bids are opened. Once the bids are opened, the time and date 
29.16 	specified in the solicitation that bids are due, at which time the name of the bidder and the 
29.17 	dollar amount specified in the response are read and become public. All other data in a 
29.18 	bidder's response to a bid are private or nonpublic data until completion of the selection 
29.19 	process. For purposes of this section, "completion of the selection process" means that 
29.20 	the government entity has completed its evaluation and has ranked the responses. After a 
29.21 	government entity has completed the selection process, all remaining data submitted by 
29.22 	all bidders are public with the exception of trade secret data as defined and classified in 
29.23 	section 13.37. A statement by a bidder that submitted data are copyrighted or otherwise 
29.24 	protected does not prevent public access to the data contained in the bid.
29.25 	If all responses to a request for bids are rejected prior to completion of the selection 
29.26 	process, all data, other than that made public at the bid opening the name of the bidder 
29.27 	and the dollar amount specified in the response, remain private or nonpublic until a 
29.28 	resolicitation of bids results in completion of the selection process or a determination is 
29.29 	made to abandon the purchase. If the rejection occurs after the completion of the selection 
29.30 	process, the data remain public. If a resolicitation of bids does not occur within one year 
29.31 	of the bid opening date, the remaining data become public.
29.32 	(b) Data submitted by a business to a government entity in response to a request 
29.33 	for proposal, as defined in section 16C.02, subdivision 12, are private or nonpublic until 
29.34 	the responses are opened. Once the responses are opened, the time and date specified in 
29.35 	the solicitation that proposals are due, at which time the name of the responder is read 
30.1 	and becomes public. All other data in a responder's response to a request for proposal are 
30.2 	private or nonpublic data until completion of the evaluation process. For purposes of this 
30.3 	section, "completion of the evaluation process" means that the government entity has 
30.4 	completed negotiating the contract with the selected vendor. After a government entity 
30.5 	has completed the evaluation process, all remaining data submitted by all responders are 
30.6 	public with the exception of trade secret data as defined and classified in section 13.37. A 
30.7 	statement by a responder that submitted data are copyrighted or otherwise protected does 
30.8 	not prevent public access to the data contained in the response.
30.9 	If all responses to a request for proposal are rejected prior to completion of the 
30.10 	evaluation process, all data, other than that made public at the response opening,the 
30.11 	names of the responders, remain private or nonpublic until a resolicitation of the requests 
30.12 	for proposal results in completion of the evaluation process or a determination is made 
30.13 	to abandon the purchase. If the rejection occurs after the completion of the evaluation 
30.14 	process, the data remain public. If a resolicitation of proposals does not occur within one 
30.15 	year of the proposal opening date, the remaining data become public.

30.16 	Sec. 15. Minnesota Statutes 2012, section 16A.10, subdivision 1c, is amended to read:
30.17 		Subd. 1c.Performance measures for change items. For each change item in the 
30.18 	budget proposal requesting new or increased funding, the budget document must present 
30.19 	proposed performance measures that can be used to determine if the new or increased 
30.20 	funding is accomplishing its goals. To the extent possible, each budget change item 
30.21 	must identify relevant Minnesota Milestones and other statewide goals and indicators 
30.22 	related to the proposed initiative. The commissioner must report to the Subcommittee on 
30.23 	Government Accountability established under section 3.885, subdivision 10, regarding the 
30.24 	format to be used for the presentation and selection of Minnesota Milestones and other 
30.25 	statewide goals and indicators.

30.26 	Sec. 16. Minnesota Statutes 2012, section 16C.02, subdivision 13, is amended to read:
30.27 		Subd. 13.Resident vendor. "Resident vendor" means a person, firm, or corporation 
30.28 	that:
30.29 	(1) is authorized to conduct business in the state of Minnesota on the date a 
30.30 	solicitation for a contract is first advertised or announced. It includes a foreign corporation 
30.31 	duly authorized to engage in business in Minnesota.;
30.32 	(2) has paid unemployment taxes or income taxes in this state during the 12 calendar 
30.33 	months immediately preceding submission of the bid or proposal for which any preference 
30.34 	is sought;
31.1 	(3) has a business address in the state; and
31.2 	(4) has affirmatively claimed that status in the bid or proposal submission.

31.3 	Sec. 17. Minnesota Statutes 2012, section 16C.06, subdivision 2, is amended to read:
31.4 		Subd. 2.Solicitation process. (a) A formal solicitation must be used to acquire all 
31.5 	goods, service contracts, and utilities estimated at or more than $50,000, or in the case of 
31.6 	a Department of Transportation solicitation, at or more than $100,000, unless otherwise 
31.7 	provided for. All formal responses must be sealed when they are received and must be 
31.8 	opened in public at the hour stated in the solicitation made publicly available as required 
31.9 	by section 13.591. Formal responses must be authenticated by the responder in a manner 
31.10 	specified by the commissioner.
31.11 	(b) An informal solicitation may be used to acquire all goods, service contracts, 
31.12 	and utilities that are estimated at less than $50,000, or in the case of a Department of 
31.13 	Transportation solicitation, at or less than $100,000. The number of vendors required to 
31.14 	receive solicitations may be determined by the commissioner. Informal responses must be 
31.15 	authenticated by the responder in a manner specified by the commissioner.

31.16 	Sec. 18. Minnesota Statutes 2012, section 16C.09, is amended to read:
31.17 	16C.09 PROCEDURE FOR SERVICE CONTRACTS.
31.18 	(a) Before entering into or approving a service contract valued in excess of $5,000, 
31.19 	the commissioner must determine, at least, that:
31.20 	(1) no current state employee is able and available to perform the services called 
31.21 	for by the contract;
31.22 	(2) the work to be performed under the contract is necessary to the agency's 
31.23 	achievement of its statutory responsibilities and there is statutory authority to enter into 
31.24 	the contract;
31.25 	(3) the contract will not establish an employment relationship between the state or 
31.26 	the agency and any persons performing under the contract;
31.27 	(4) the contractor and agents are not employees of the state;
31.28 	(5) the contracting agency has specified a satisfactory method of evaluating and 
31.29 	using the results of the work to be performed; and
31.30 	(6) the combined contract and amendments will not exceed five years without 
31.31 	specific, written approval by the commissioner according to established policy, procedures, 
31.32 	and standards, or unless otherwise provided for by law. The term of the original contract 
31.33 	must not exceed two years, unless the commissioner determines that a longer duration is 
31.34 	in the best interest of the state.
32.1 	(b) For purposes of paragraph (a), clause (1), employees are available if qualified and:
32.2 	(1) are already doing the work in question; or
32.3 	(2) are on layoff status in classes that can do the work in question.
32.4 	An employee is not available if the employee is doing other work, is retired, or has decided 
32.5 	not to do the work in question.
32.6 	(c) This section does not apply to an agency's use of inmates pursuant to sections 
32.7 	241.20 to 241.23 or to an agency's use of persons required by a court to provide:
32.8 	(1) community service; or
32.9 	(2) conservation or maintenance services on lands under the jurisdiction and control 
32.10 	of the state.

32.11 	Sec. 19. Minnesota Statutes 2012, section 16C.10, subdivision 6, is amended to read:
32.12 		Subd. 6.Expenditures under specified amounts. The solicitation process 
32.13 	described in this chapter is not required for:
32.14 	(1) acquisition of goods or services, other than professional or technical services, 
32.15 	in an amount of $2,500 $5,000 or less; or
32.16 	(2) acquisition of professional or technical services in an amount of $5,000 or less, 
32.17 	provided the requirements of section 16C.08, subdivisions 3 to 6, are met.

32.18 	Sec. 20. Minnesota Statutes 2012, section 16C.145, is amended to read:
32.19 	16C.145 NONVISUAL TECHNOLOGY ACCESS STANDARDS.
32.20 	(a) The commissioner shall develop nonvisual technology access standards. The 
32.21 	standards must be included in all contracts for the procurement of information technology 
32.22 	by, or for the use of, agencies, political subdivisions, and the Minnesota State Colleges and 
32.23 	Universities. The University of Minnesota is encouraged to consider similar standards.
32.24 	(b) The nonvisual access standards must include the following minimum 
32.25 	specifications:
32.26 	(1) that effective, interactive control and use of the technology including the 
32.27 	operating system, applications programs, prompts, and format of the data presented, are 
32.28 	readily achievable by nonvisual means;
32.29 	(2) that the nonvisual access technology must be compatible with information 
32.30 	technology used by other individuals with whom the blind or visually impaired individual 
32.31 	must interact;
32.32 	(3) that nonvisual access technology must be integrated into networks used to share 
32.33 	communications among employees, program participants, and the public; and
33.1 	(4) that the nonvisual access technology must have the capability of providing 
33.2 	equivalent access by nonvisual means to telecommunications or other interconnected 
33.3 	network services used by persons who are not blind or visually impaired.
33.4 	(c) Nothing in this section requires the installation of software or peripheral devices 
33.5 	used for nonvisual access when the information technology is being used by individuals 
33.6 	who are not blind or visually impaired.
33.7 	(d) Executive branch state agencies subject to section 16E.03, subdivision 9, are not 
33.8 	required to include nonvisual technology access standards developed under this section in 
33.9 	contracts for the procurement of information technology.

33.10 	Sec. 21. Minnesota Statutes 2012, section 16C.33, subdivision 3, is amended to read:
33.11 		Subd. 3.Solicitation of qualifications or proposals. (a) Every user agency, except 
33.12 	the Capitol Area Architectural and Planning Board, shall submit a written request for a 
33.13 	design-builder for its project to the commissioner who shall forward the request to the 
33.14 	board, consistent with section 16B.33, subdivision 3, paragraph (a). The University of 
33.15 	Minnesota shall follow the process in subdivision 4 to select design-builders for projects 
33.16 	that are subject to section 16B.33. The written request must include a description of the 
33.17 	project, the total project cost, a description of any special requirements or unique features 
33.18 	of the proposed project, and other information requested by the board which will assist the 
33.19 	board in carrying out its duties and responsibilities set forth in this section.
33.20 	(b) A request for qualifications or proposals soliciting design-builders shall be 
33.21 	prepared for each design-build contract pursuant to subdivision 5 or 7. The request for 
33.22 	qualifications or proposals shall contain, at a minimum, the following elements:
33.23 	(1) the identity of the agency for which the project will be built and that will award 
33.24 	the design-build contract;
33.25 	(2) procedures for submitting qualifications or proposals, the criteria for evaluation 
33.26 	of qualifications or proposals and the relative weight for each criterion and subcriterion, 
33.27 	and the procedures for making awards according to the stated criteria and subcriteria, 
33.28 	including a reference to the requirements of this section;
33.29 	(3) the proposed terms and conditions for the contract;
33.30 	(4) the desired qualifications of the design-builder and the desired or permitted 
33.31 	areas of construction to be performed by named members of the design-build team, if 
33.32 	applicable. The primary designer shall be a named member of the design-build team;
33.33 	(5) the schedule for commencement and completion of the project;
33.34 	(6) any applicable budget limits for the project;
34.1 	(7) the requirements for insurance and statutorily required performance and payment 
34.2 	bonds;
34.3 	(8) the identification and location of any other information in the possession or 
34.4 	control of the agency that the user agency determines is material, which may include 
34.5 	surveys, soils reports, drawings or models of existing structures, environmental studies, 
34.6 	photographs, or references to public records;
34.7 	(9) for a design-build design and price-based selection process, the request shall 
34.8 	also include the design criteria package, including the performance and technical 
34.9 	requirements for the project, and the functional and operational elements for the delivery 
34.10 	of the completed project. The request shall also contain a description of the drawings, 
34.11 	specifications, or other submittals to be included with the proposal, with guidance as to 
34.12 	the form and level of completeness of the drawings, specifications or submittals that will 
34.13 	be acceptable, and the stipend to be paid to the design-builders selected to submit the 
34.14 	above described information; and
34.15 	(10) the criteria shall not impose unnecessary conditions beyond reasonable 
34.16 	requirements to ensure maximum participation of qualified design-builders. The criteria 
34.17 	shall not consider the collective bargaining status of the design-builder.
34.18 	(c) Notice of requests for qualifications or proposals must be advertised in the State 
34.19 	Register a manner designated by the commissioner.

34.20 	Sec. 22. Minnesota Statutes 2012, section 16C.34, subdivision 1, is amended to read:
34.21 		Subdivision 1.Solicitation of qualifications. (a) Every user agency, except 
34.22 	the Capitol Area Architectural and Planning Board, shall submit a written request for 
34.23 	proposals for a construction manager at risk for its project to the commissioner. The 
34.24 	written request for proposals must include a description of the project, the estimated cost 
34.25 	of completing the project, a description of any special requirements or unique features of 
34.26 	the proposed project, and other information which will assist the commissioner in carrying 
34.27 	out its duties and responsibilities set forth in this section.
34.28 	(b) The commissioner may include in the request for qualifications criteria a 
34.29 	requirement that the proposer include the overhead and fee that the construction manager 
34.30 	at risk proposes to charge for its services.
34.31 	(c) A request for qualifications shall be prepared for each construction manager at 
34.32 	risk contract as provided in this section. The request for qualifications shall contain, at a 
34.33 	minimum, the following elements:
34.34 	(1) the identity of the agency for which the project will be built and that will award 
34.35 	the construction manager at risk contract;
35.1 	(2) procedures for submitting qualifications, the criteria and subcriteria for evaluation 
35.2 	of qualifications and the relative weight for each criteria and subcriteria, and the procedures 
35.3 	for making awards in an open, competitive, and objective manner, and according to the 
35.4 	stated criteria and subcriteria, including a reference to the requirements of this section;
35.5 	(3) the terms and conditions for the contract;
35.6 	(4) the qualifications that the construction manager at risk shall be desired to have;
35.7 	(5) a schedule for commencement and completion of the project;
35.8 	(6) any applicable budget limits for the project;
35.9 	(7) requirements for insurance, statutorily required performance and payment bonds;
35.10 	(8) identification and location of any other information in the possession or control 
35.11 	of the agency that the user agency determines is material, which may include surveys, soils 
35.12 	reports, drawings or models of existing structures, environmental studies, photographs, or 
35.13 	references to public records; and
35.14 	(9) criteria shall not impose unnecessary conditions beyond reasonable requirements 
35.15 	to ensure maximum participation of construction managers at risk. The criteria shall not 
35.16 	consider the collective bargaining status of the construction manager at risk.
35.17 	(d) Notice of requests for qualifications must be advertised in the State Register a 
35.18 	manner designated by the commissioner.

35.19 	Sec. 23. [16E.0466] STATE AGENCY TECHNOLOGY PROJECTS.
35.20 	Every state agency with an information or telecommunications project must consult 
35.21 	with the Office of Enterprise Technology to determine the information technology cost 
35.22 	of the project. Upon agreement between the commissioner of a particular agency and 
35.23 	the chief information officer, the agency must transfer the information technology cost 
35.24 	portion of the project to the Office of Enterprise Technology. Service level agreements 
35.25 	must document all project-related transfers under this section. Those agencies specified in 
35.26 	section 16E.016, paragraph (d), are exempt from the requirements of this section.

35.27 	Sec. 24. Minnesota Statutes 2012, section 16E.07, is amended by adding a subdivision 
35.28 	to read:
35.29 		Subd. 12.Private entity services; fee authority. (a) The office may enter into a 
35.30 	contract with a private entity to manage, maintain, support, and expand North Star and 
35.31 	online government information services to citizens and businesses.
35.32 	(b) A contract established under paragraph (a) may provide for compensation of the 
35.33 	private entity through a fee established under paragraph (c).
36.1 	(c) The office, subject to the approval of the agency or office responsible for the 
36.2 	data or services involved in the transaction, may charge and may authorize a private 
36.3 	entity that enters into a contract under paragraph (a) to charge a convenience fee for 
36.4 	users of North Star and online government information services up to a total of $2 per 
36.5 	transaction, provided that no fee shall be charged for viewing or inspecting data. The 
36.6 	office shall consider the recommendation of the E-Government Advisory Council under 
36.7 	section 16E.071 in setting the convenience fee. A fee established under this paragraph is 
36.8 	in addition to any fees or surcharges authorized under other law.
36.9 	(d) Receipts from the convenience fee shall be deposited in the North Star account 
36.10 	established in subdivision 7. Notwithstanding section 16A.1285, subdivision 2, receipts 
36.11 	credited to the account are appropriated to the office for payment to the contracted private 
36.12 	entity under paragraph (a). In lieu of depositing the receipts in the North Star account, the 
36.13 	office can directly transfer the receipts to the private entity or allow the private entity to 
36.14 	retain the receipts pursuant to a contract established under this subdivision.
36.15 	(e) The office shall report to the chairs and ranking minority members of the house 
36.16 	of representatives and senate committees with jurisdiction over state government finance 
36.17 	by January 15 of each odd-numbered year regarding the convenience fee receipts and 
36.18 	the status of North Star projects and online government information services developed 
36.19 	and supported by convenience fee receipts.

36.20 	Sec. 25. [16E.071] E-GOVERNMENT ADVISORY COUNCIL.
36.21 		Subdivision 1.E-Government Advisory Council established. The E-Government 
36.22 	Advisory Council is established for the purpose of improving online government 
36.23 	information services to citizens and businesses. 
36.24 		Subd. 2.Membership. The council shall consist of nine members as follows:
36.25 	(1) the state chief information officer or the chief information officer's designee;
36.26 	(2) one public member appointed by the speaker of the house;
36.27 	(3) one public member appointed by the senate Subcommittee on Committees of 
36.28 	the Rules and Administration Committee;
36.29 	(4) five members appointed by the governor representing state executive branch 
36.30 	agencies that are actively involved with private businesses, the private business 
36.31 	community, or the public; and
36.32 	(5) one member appointed by the governor who is knowledgeable in public access 
36.33 	to government data.
36.34 		Subd. 3.Initial appointments and first meeting. Appointing authorities shall make 
36.35 	the first appointments to the council by September 1, 2013. The first member appointed by 
37.1 	the speaker of the house shall serve until the first Monday in January, 2015. The governor 
37.2 	shall designate three initial appointees to serve until the first Monday in January 2015. The 
37.3 	term of the other three initial appointees of the governor and the first member appointed 
37.4 	by the senate shall be until the first Monday in January 2017. The chief information officer 
37.5 	or the chief information officer's designee shall convene the council's first meeting by 
37.6 	November 1, 2013, and shall act as chair until the council elects a chair at its first meeting.
37.7 		Subd. 4.Terms; removal; vacancies; compensation. Membership terms, removal 
37.8 	of member, and filling of vacancies are as provided in section 15.059, except that members 
37.9 	shall not receive compensation or be reimbursed for expenses and except that terms of 
37.10 	initial appointees are as provided in subdivision 3.
37.11 		Subd. 5.Chair. The council shall annually elect a chair from its members.
37.12 		Subd. 6.Duties. The council shall recommend to the office the priority of North 
37.13 	Star projects and online government information services to be developed and supported 
37.14 	by convenience fee receipts. The council shall provide oversight on the convenience fee 
37.15 	and its receipts in the North Star account. The council shall by majority quorum vote to 
37.16 	recommend to approve or disapprove establishing the convenience fee on particular types 
37.17 	of transactions, the fee amount, and any changes in the fee amount. If the convenience fee 
37.18 	receipts are retained by or transferred to the private entity in lieu of deposit in the North 
37.19 	Star account, the council may audit the private entity's convenience fee receipts, expenses 
37.20 	paid by the receipts, and associated financial statements.
37.21 		Subd. 7.Staff. The office shall provide administrative support to the council.
37.22 		Subd. 8.Sunset. The council shall expire the first Monday in January 2017.
37.23 		Subd. 9.Reports. By June 1, 2014, and every year thereafter, the council shall 
37.24 	report to the office with its recommendations regarding establishing the convenience fee, 
37.25 	the fee amount, and changes to the fee amount.

37.26 	Sec. 26. Minnesota Statutes 2012, section 32C.04, is amended to read:
37.27 	32C.04 ACCOUNTS; AUDITS.
37.28 	The authority may establish funds and accounts that it determines to be reasonable and 
37.29 	necessary to conduct the business of the authority. The board shall provide for and pay the 
37.30 	cost of an independent annual audit of its official books and records be subject to audit by 
37.31 	the state legislative auditor. A copy of this an audit must be filed with the secretary of state.

37.32 	Sec. 27. Minnesota Statutes 2012, section 129D.14, subdivision 2, is amended to read:
37.33 		Subd. 2.Definitions. As used in this section, the terms defined in this subdivision 
37.34 	have the meanings given them.
38.1 	(a) "Corporation for Public Broadcasting" or "CPB" means the nonprofit organization 
38.2 	established pursuant to United States Code, title 47, section 396.
38.3 	(b) "Federal Communications Commission" or "FCC" means the federal agency 
38.4 	established pursuant to United States Code, title 47, section 151.
38.5 	(c) "Licensee" means the individual or business an entity to whom which the Federal 
38.6 	Communications Commission has issued the a license to operate a noncommercial radio 
38.7 	station as defined in Code of Federal Regulations, title 47, subpart D, section 73.503.
38.8 	(d) "Noncommercial radio station" means a station operated by a licensee of the FCC 
38.9 	as a noncommercial educational radio station under a license or program test authority from 
38.10 	the Federal Communications Commission as a noncommercial educational radio station as 
38.11 	defined in Code of Federal Regulations, title 47, subpart D, section 73.503, licensed to a 
38.12 	community within the state and serving a segment of the population of the state.
38.13 	(e) "Operating income" may include:
38.14 	(1) individual and other community contributions;
38.15 	(2) all grants received from the Corporation for Public Broadcasting;
38.16 	(3) grants received from foundations, corporations, or federal, state, or local agencies 
38.17 	or other sources for the purpose of programming or general operating support;
38.18 	(4) interest income;
38.19 	(5) earned income;
38.20 	(6) employee salaries paid through the federal Comprehensive Employment and 
38.21 	Training Act, or other similar public employment programs, provided that only salary 
38.22 	expended for employee duties directly relating to radio station operations shall be counted;
38.23 	(7) employee salaries paid through supporting educational institutions, provided that 
38.24 	only salary expended for employee duties directly relating to radio station operations 
38.25 	shall be counted;
38.26 	(8) direct operating costs provided by supporting educational institutions; and
38.27 	(9) no more than $15,000 in volunteer time calculated at the federal minimum wage.
38.28 	The following are specifically excluded in determining a station's operating income:
38.29 	(1) dollar representations in in-kind assistance from any source except as stipulated 
38.30 	in clauses (8) and (9) above;
38.31 	(2) grants or contributions from any source for the purpose of purchasing capital 
38.32 	improvements or equipment; and
38.33 	(3) noncommercial radio station grants received in the previous fiscal year pursuant 
38.34 	to this section.
38.35 	(f) "Local" means the area designated by the FCC's 60 dBu contour map.

39.1 	Sec. 28. Minnesota Statutes 2012, section 129D.14, subdivision 3, is amended to read:
39.2 		Subd. 3.Eligibility. (a) To qualify for a grant under this section, the licensee shall
39.3 	 must:
39.4 	(a) (1) hold a valid noncommercial educational radio station license or program test 
39.5 	authority from the Federal Communications Commission; FCC that is a Class "A" or "C" 
39.6 	FM, as defined in Code of Federal Regulations, title 47, subpart B, sections 73.210 and 
39.7 	73.211 or Class "C" or "D" AM, as defined in Code of Federal Regulations, title 47, 
39.8 	subpart A, section 73.21. Stations with a Class "L1" and "LP100" are not eligible for this 
39.9 	funding. The station must be licensed to a community in the state of Minnesota and must 
39.10 	be operated as a noncommercial educational station.
39.11 	(b) (2) have facilities adequate to provide local program production and origination;
39.12 	(c) (3) employ a minimum of two full-time professional radio staff persons or the 
39.13 	equivalent in part-time staff and agree to employ a minimum of two full-time professional 
39.14 	radio staff persons or the equivalent in part-time staff throughout the fiscal year of the grant;
39.15 	(d) (4) maintain a minimum daily broadcasting schedule of (1) (i) the maximum 
39.16 	allowed by its Federal Communications Commission license or (2) (ii) 12 hours a day 
39.17 	during the first year of eligibility for state assistance, 15 hours a day during the second 
39.18 	year of eligibility and 18 hours a day during the third and following years of eligibility;
39.19 	(e) (5) broadcast 365 days a year or the maximum number of days allowed by its 
39.20 	Federal Communications Commission license with an exception for power outages and 
39.21 	natural disasters;
39.22 	(f) (6) have a daily broadcast schedule devoted primarily to programming that serves 
39.23 	ascertained community needs of an educational, informational or cultural nature within 
39.24 	its primary signal area; however, a program schedule of a main channel carrier designed 
39.25 	to further the principles of one or more particular religious philosophies or including 25 
39.26 	percent or more religious programming on a broadcast day does not meet this criterion, 
39.27 	nor does a program schedule of a main channel carrier designed primarily for in-school or 
39.28 	professional in-service audiences;
39.29 	(g) (7) originate significant, locally produced programming designed to serve its 
39.30 	community of license;
39.31 	(h) (8) have a total annual operating income and budget of at least $50,000;
39.32 	(i) (9) have either a board of directors representing the community or a community 
39.33 	advisory board that conducts advisory board meetings that are open to the public;
39.34 	(j) (10) have a board of directors that: (1) (i) holds the portion of any meeting 
39.35 	relating to the management or operation of the radio station open to the public and (2)
39.36 	 (ii) permits any person to attend any meeting of the board without requiring a person, 
40.1 	as a condition to attendance at the meeting, to register the person's name or to provide 
40.2 	any other information; and
40.3 	(k) (11) have met the criteria in clauses (a) (1) to (j) (10) for six months before it is 
40.4 	eligible for state assistance under this section.
40.5 	(b) The commissioner shall accept the judgment of Corporation for Public 
40.6 	Broadcasting accepted audit when it is available on a station's eligibility for assistance 
40.7 	under the criteria of this subdivision. If the station is not qualified for assistance or is 
40.8 	qualified for but not receiving funding from the Corporation for Public Broadcasting, an 
40.9 	independent audit is required to verify eligibility under paragraph (a), clause (8). If neither 
40.10 	is available, the commissioner may accept a written declaration of eligibility signed by 
40.11 	an independent auditor, a certified public accountant, or the chief executive officer of the 
40.12 	station's parent organization if it is an institution of education.

40.13 	Sec. 29. Minnesota Statutes 2012, section 129D.15, is amended to read:
40.14 	129D.15 EQUIPMENT GRANTS.
40.15 	To be eligible for an equipment grant under sections 129D.11 to 129D.14, a public 
40.16 	broadcasting station must meet the eligibility criteria set forth in sections 129D.13 and 
40.17 	129D.14. Before receiving an equipment grant, a station must submit to the commissioner 
40.18 	a list of the equipment the station plans to purchase with the equipment grant. The 
40.19 	commissioner may not require the station to purchase equipment before receiving the 
40.20 	grant funds. A station must report  to the commissioner a list of the equipment purchased 
40.21 	with the grant.

40.22 	Sec. 30. Minnesota Statutes 2012, section 129D.155, is amended to read:
40.23 	129D.155 REPAYMENT OF FUNDS.
40.24 	State funds distributed to public television or noncommercial radio stations and used 
40.25 	to purchase equipment assets must be repaid to the state, without interest, if the assets 
40.26 	purchased with these funds are sold within five years or otherwise converted to a person 
40.27 	other than a nonprofit or municipal corporation. The amount due to the state shall be the 
40.28 	net amount realized from the sale of the assets, but shall not exceed the amount of state 
40.29 	funds advanced for the purchase of the asset. The commissioner of administration may 
40.30 	approve the use of funds derived from the sale of such assets for the purchase of new 
40.31 	equipment for similar purposes.

40.32 	Sec. 31. Minnesota Statutes 2012, section 161.1419, subdivision 3, is amended to read:
41.1 		Subd. 3.Investigatory powers; Chair, vice-chair, and secretary. The commission 
41.2 	may hold meetings and hearings at such time and places as it may designate to accomplish 
41.3 	the purposes set forth in this section and may subpoena witnesses and records. It shall select 
41.4 	a chair, a vice-chair, and such other officers from its membership as it deems necessary. 
41.5 	The commission shall appoint a secretary who shall also serve as a commission member.

41.6 	Sec. 32. Minnesota Statutes 2012, section 469.3201, is amended to read:
41.7 	469.3201 STATE LEGISLATIVE AUDITOR; AUDITS OF JOB 
41.8 	OPPORTUNITY BUILDING ZONES AND BUSINESS SUBSIDY AGREEMENTS.
41.9 	As resources allow, the Office of the State Auditor legislative auditor must annually
41.10 	 audit the creation and operation of all job opportunity building zones and business 
41.11 	subsidy agreements entered into under Minnesota Statutes, sections 469.310 to 469.320. 
41.12 	To the extent necessary to perform this audit, the state auditor may request from the 
41.13 	commissioner of revenue tax return information of taxpayers who are eligible to receive 
41.14 	tax benefits authorized under section 469.315. To the extent necessary to perform this 
41.15 	audit, the state auditor may request from the commissioner of employment and economic 
41.16 	development wage detail report information required under section 268.044 of taxpayers 
41.17 	eligible to receive tax benefits authorized under section 469.315 All public officials and 
41.18 	parties to the agreements shall provide the legislative auditor with all documents and 
41.19 	data the legislative auditor deems necessary and in all other respects comply with the 
41.20 	requirements of section 3.978, subdivision 2.

41.21 	Sec. 33. Minnesota Statutes 2012, section 471.699, is amended to read:
41.22 	471.699 ENFORCEMENT OF REPORTING REQUIREMENTS.
41.23 	Failure of a city to timely file a statement or report under section 471.697 or 471.698
41.24 	shall, in addition to any other penalties provided by law, authorize the state auditor to send 
41.25 	full-time personnel to the city or to contract with private persons, firms, or corporations 
41.26 	pursuant to section 6.58 6.581, in order to complete and file the financial statement or 
41.27 	report. The expenses related to the completion and filing of the financial statement or 
41.28 	report shall be charged to the city. Upon failure by the city to pay the charge within 30 
41.29 	days of billing, the state auditor shall so certify to the commissioner of management and 
41.30 	budget who shall forward the amount certified to the general fund and deduct the amount 
41.31 	from any state funds due to the city under any shared taxes or aids. The state auditor's 
41.32 	annual report on cities shall include a listing of all cities failing to file a statement or report.

41.33 	Sec. 34. LEGISLATIVE ADVISORY COMMISSION CHAIR; 2013.
 42.1 	Under Minnesota Statutes, section 3.30, subdivision 2, the chair of the Legislative 
42.2 	Advisory Commission must be a member of the senate in 2013.

42.3 	Sec. 35. AUDIT OF FINANCIAL STATEMENTS.
 42.4 	The legislative auditor shall examine alternatives for achieving an annual 
42.5 	independent audit of the financial statements of the state of Minnesota required by 
42.6 	Minnesota Statutes, section 16A.50, and make recommendations to the Legislative Audit 
42.7 	Commission and appropriate legislative committees by October 1, 2013.

42.8 	Sec. 36. REVISOR'S INSTRUCTION.
 42.9 	In the next and subsequent editions of Minnesota Statutes, the revisor of statutes shall:
42.10 	(1) substitute the term "Office of MN.IT Services" for "Office of Enterprise 
42.11 	Technology" in each place where the latter term appears; and
42.12 	(2) substitute the term "MN.IT services revolving fund" for "enterprise technology 
42.13 	revolving fund" in each place where the latter term appears.

42.14 	Sec. 37. REPEALER.
 42.15 	Minnesota Statutes 2012, sections 3.304, subdivisions 1 and 5; 3.885, subdivision 
42.16 	10; and 6.58, are repealed.

42.17 	ARTICLE 4
42.18 	MILITARY AND VETERANS PROVISIONS

42.19 	Section 1. Minnesota Statutes 2012, section 192.26, is amended to read:
42.20 	192.26 STATE AND MUNICIPAL OFFICERS AND EMPLOYEES NOT TO 
42.21 	LOSE PAY WHILE ON  AUTHORIZED LEAVE FOR MILITARY DUTY.
42.22 		Subdivision 1.Authorized leave. Subject to the conditions hereinafter prescribed, 
42.23 	any officer or employee of the state or of any political subdivision, municipal corporation, 
42.24 	or other public agency of the state who shall be a member of the National Guard, or any 
42.25 	other component of the militia of the state now or hereafter organized or constituted 
42.26 	under state or federal law, or who shall be a member of the officers' reserve corps, the 
42.27 	enlisted reserve corps, the Naval Reserve, the Marine Corps reserve, or any other reserve 
42.28 	component of the military or naval forces of the United States now or hereafter organized 
42.29 	or constituted under federal law, shall be entitled to leave of absence from the public 
42.30 	office or employment without loss of pay, seniority status, efficiency rating, vacation, 
42.31 	sick leave, or other benefits for all the time when engaged with such organization or 
43.1 	component in training or active service ordered or authorized by proper authority pursuant 
43.2 	to law, whether for state or federal purposes, but not exceeding a total of 15 days in any 
43.3 	calendar year. The state or political subdivision, municipal corporation, or other public 
43.4 	agency shall allow the officer or employee to choose when during the calendar year to 
43.5 	take the 15 days of paid military leave. The officer or employee may choose to use all of 
43.6 	the 15 days of paid military leave at one time or, in the alternative, the 15 days of paid 
43.7 	military leave may be divided and taken throughout the calendar year at the discretion of 
43.8 	the officer or employee. Such leave shall be allowed only in case the required military or 
43.9 	naval service is satisfactorily performed, which shall be presumed unless the contrary is 
43.10 	established. Such leave shall not be allowed unless the officer or employee (1) returns to 
43.11 	the public position immediately on being relieved from such military or naval service and 
43.12 	not later than the expiration of the time herein limited for such leave, or (2) is prevented 
43.13 	from so returning by physical or mental disability or other cause not due to the officer's or 
43.14 	employee's own fault, or (3) is required by proper authority to continue in such military or 
43.15 	naval service beyond the time herein limited for such leave.

43.16 	Sec. 2. Minnesota Statutes 2012, section 197.608, subdivision 1, is amended to read:
43.17 		Subdivision 1.Grant program. A veterans service office grant program is 
43.18 	established to be administered by the commissioner of veterans affairs consisting of grants 
43.19 	to counties to enable them to enhance the effectiveness of their veterans service offices.
43.20 	 "Commissioner" as used in this section means the commissioner of veterans affairs.

43.21 	Sec. 3. Minnesota Statutes 2012, section 197.608, subdivision 3, is amended to read:
43.22 		Subd. 3.Eligibility. (a) To be eligible for a grant under this program subdivision 6, 
43.23 	a county must employ a county veterans service officer as authorized by sections 197.60
43.24 	and 197.606, who is certified to serve in this position by the commissioner.
43.25 	(b) A county that employs a newly hired county veterans service officer who is 
43.26 	serving an initial probationary period and who has not been certified by the commissioner 
43.27 	is eligible to receive a grant under subdivision 2a 6 for one year from the date the county 
43.28 	veterans service officer is appointed.
43.29 	(c) Except for the situation described in paragraph (b), A county whose county 
43.30 	veterans service officer does not receive certification during any year of the three-year 
43.31 	cycle is not eligible to receive a grant during the remainder of that cycle or the next 
43.32 	three-year cycle by the end of the first year of the county veterans service officer's 
43.33 	appointment is ineligible for the grant under subdivision 6 until the county veterans 
43.34 	service officer receives certification.

44.1 	Sec. 4. Minnesota Statutes 2012, section 197.608, subdivision 4, is amended to read:
44.2 		Subd. 4.Grant process. (a) The commissioner shall determine the process for 
44.3 	awarding grants. A grant may be used only for the purpose of enhancing the operations of 
44.4 	the County Veterans Service Office.
44.5 	(b) The commissioner shall provide a list of qualifying uses for grant expenditures 
44.6 	as developed in subdivision 5 and shall approve a grant under subdivision 6 only for a 
44.7 	qualifying use and if there are sufficient funds remaining in the grant program to cover the 
44.8 	full amount of the grant.
44.9 	(c) The commissioner is authorized to use any unexpended funding for this program 
44.10 	to provide training and education for county veterans service officers.

44.11 	Sec. 5. Minnesota Statutes 2012, section 197.608, subdivision 5, is amended to read:
44.12 		Subd. 5.Qualifying uses. The commissioner shall consult with the Minnesota 
44.13 	Association of County Veterans Service Officers in developing a list of qualifying uses for 
44.14 	grants awarded under this program subdivision 6. 
44.15 	The commissioner is authorized to use any unexpended funding for this program to 
44.16 	provide training and education for county veterans service officers.

44.17 	Sec. 6. Minnesota Statutes 2012, section 197.608, subdivision 6, is amended to read:
44.18 		Subd. 6.Grant amount. (a) Each county is eligible to receive an annual grant of 
44.19 	$7,500 for the following purposes: 
44.20 	(1) to provide outreach to the county's veterans;
44.21 	(2) to assist in the reintegration of combat veterans into society;
44.22 	(3) to collaborate with other social service agencies, educational institutions, and 
44.23 	other community organizations for the purposes of enhancing services offered to veterans;
44.24 	(4) to reduce homelessness among veterans; and
44.25 	(5) to enhance the operations of the county veterans service office.
44.26 	(b) In addition to the grant amount in paragraph (a), each county is eligible to receive 
44.27 	an additional annual grant under this paragraph. The amount of each additional annual 
44.28 	grant must be determined by the commissioner and may not exceed:
44.29 	(1) $1,400 $0, if the county's veteran population is less than 1,000;
44.30 	(2) $2,800 $2,500, if the county's veteran population is 1,000 or more but less than 
44.31 	3,000;
44.32 	(3) $4,200 $5,000, if the county's veteran population is 3,000 or more but less then 
44.33 	10,000 than 4,999; or
45.1 	(4) $5,600 $7,500, if the county's veteran population is 10,000 5,000 or more. but 
45.2 	less than 9,999;
45.3 	(5) $10,000, if the county's veteran population is 10,000 or more but less than 19,999;
45.4 	(6) $15,000, if the county's veteran population is 20,000 or more but less than 
45.5 	29,999; or
45.6 	(7) $20,000, if the county's veteran population is 30,000 or more.
45.7 	(c) The Minnesota Association of County Veterans Service Officers is eligible to 
45.8 	receive an annual grant of $50,000. The grant shall be used for administrative costs of 
45.9 	the association, certification of mandated county veterans service officer training and 
45.10 	accreditation, and costs associated with reintegration services.
45.11 	The veteran population of each county shall be determined by the figure supplied by 
45.12 	the United States Department of Veterans Affairs, as adopted by the commissioner.

45.13 	Sec. 7. Minnesota Statutes 2012, section 197.791, subdivision 4, is amended to read:
45.14 		Subd. 4.Eligibility. (a) A person is eligible for educational assistance under this 
45.15 	section if:
45.16 	(1) the person is:
45.17 	(i) a veteran who is serving or has served honorably in any branch or unit of the 
45.18 	United States armed forces at any time on or after September 11, 2001;
45.19 	(ii) a nonveteran who has served honorably for a total of five years or more 
45.20 	cumulatively as a member of the Minnesota National Guard or any other active or reserve 
45.21 	component of the United States armed forces, and any part of that service occurred on or 
45.22 	after September 11, 2001;
45.23 	(iii) the surviving spouse or child of a person who has served in the military at any 
45.24 	time on or after September 11, 2001, and who has died as a direct result of that military 
45.25 	service, only if the surviving spouse or child is eligible to receive federal education 
45.26 	benefits under United States Code, title 38, chapter 33, as amended, or United States 
45.27 	Code, title 38, chapter 35, as amended; or
45.28 	(iv) the spouse or child of a person who has served in the military at any time on or 
45.29 	after September 11, 2001, and who has a total and permanent service-connected disability 
45.30 	as rated by the United States Veterans Administration, only if the spouse or child is 
45.31 	eligible to receive federal education benefits under United States Code, title 38, chapter 
45.32 	33, as amended, or United States Code, title 38, chapter 35, as amended; and
45.33 	(2) the person receiving the educational assistance is a Minnesota resident, as 
45.34 	defined in section 136A.101, subdivision 8; and
45.35 	(3) the person receiving the educational assistance:
46.1 	(i) is an undergraduate or graduate student at an eligible institution;
46.2 	(ii) is maintaining satisfactory academic progress as defined by the institution for 
46.3 	students participating in federal Title IV programs;
46.4 	(iii) is enrolled in an education program leading to a certificate, diploma, or degree 
46.5 	at an eligible institution;
46.6 	(iv) has applied for educational assistance under this section prior to the end of the 
46.7 	academic term for which the assistance is being requested;
46.8 	(v) is in compliance with child support payment requirements under section 
46.9 	136A.121, subdivision 2, clause (5); and
46.10 	(vi) has completed the Free Application for Federal Student Aid (FAFSA).
46.11 	(b) A person's eligibility terminates when the person becomes eligible for benefits 
46.12 	under section 135A.52.
46.13 	(c) To determine eligibility, the commissioner may require official documentation, 
46.14 	including the person's federal form DD-214 or other official military discharge papers; 
46.15 	correspondence from the United States Veterans Administration; birth certificate; marriage 
46.16 	certificate; proof of enrollment at an eligible institution; signed affidavits; proof of 
46.17 	residency; proof of identity; or any other official documentation the commissioner 
46.18 	considers necessary to determine eligibility.
46.19 	(d) The commissioner may deny eligibility or terminate benefits under this section 
46.20 	to any person who has not provided sufficient documentation to determine eligibility for 
46.21 	the program. An applicant may appeal the commissioner's eligibility determination or 
46.22 	termination of benefits in writing to the commissioner at any time. The commissioner 
46.23 	must rule on any application or appeal within 30 days of receipt of all documentation that 
46.24 	the commissioner requires. The decision of the commissioner regarding an appeal is final. 
46.25 	However, an applicant whose appeal of an eligibility determination has been rejected by 
46.26 	the commissioner may submit an additional appeal of that determination in writing to the 
46.27 	commissioner at any time that the applicant is able to provide substantively significant 
46.28 	additional information regarding the applicant's eligibility for the program. An approval 
46.29 	of an applicant's eligibility by the commissioner following an appeal by the applicant is 
46.30 	not retroactively effective for more than one year or the semester of the person's original 
46.31 	application, whichever is later.
46.32 	(e) Upon receiving an application with insufficient documentation to determine 
46.33 	eligibility, the commissioner must notify the applicant within 30 days of receipt of the 
46.34 	application that the application is being suspended pending receipt by the commissioner of 
46.35 	sufficient documentation from the applicant to determine eligibility.

47.1 	Sec. 8. Minnesota Statutes 2012, section 197.791, subdivision 5, is amended to read:
47.2 		Subd. 5.Benefit amount. (a) On approval by the commissioner of eligibility for 
47.3 	the program, the applicant shall be awarded, on a funds-available basis, the educational 
47.4 	assistance under the program for use at any time according to program rules at any 
47.5 	eligible institution.
47.6 	(b) The amount of educational assistance in any semester or term for an eligible 
47.7 	person must be determined by subtracting from the eligible person's cost of attendance the 
47.8 	amount the person received or was eligible to receive in that semester or term from:
47.9 	(1) the federal Pell Grant;
47.10 	(2) the state grant program under section 136A.121; and
47.11 	(3) any federal military or veterans educational benefits including but not limited 
47.12 	to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 
47.13 	vocational rehabilitation benefits, and any other federal benefits associated with the 
47.14 	person's status as a veteran, except veterans disability payments from the United States 
47.15 	Veterans Administration and payments made under the Veterans Retraining Assistance 
47.16 	Program (VRAP).
47.17 	(c) The amount of educational assistance for any eligible person who is a full-time 
47.18 	student must not exceed the following:
47.19 	(1) $1,000 per semester or term of enrollment;
47.20 	(2) $3,000 per state fiscal year; and
47.21 	(3) $10,000 in a lifetime.
47.22 	For a part-time student, the amount of educational assistance must not exceed 
47.23 	$500 per semester or term of enrollment. For the purpose of this paragraph, a part-time 
47.24 	undergraduate student is a student taking fewer than 12 credits or the equivalent for a 
47.25 	semester or term of enrollment and a part-time graduate student is a student considered 
47.26 	part time by the eligible institution the graduate student is attending. The minimum award 
47.27 	for undergraduate and graduate students is $50 per term.

47.28 	Sec. 9. Minnesota Statutes 2012, section 364.03, subdivision 3, is amended to read:
47.29 		Subd. 3.Evidence of rehabilitation. (a) A person who has been convicted of a 
47.30 	crime or crimes which directly relate to the public employment sought or to the occupation 
47.31 	for which a license is sought shall not be disqualified from the employment or occupation 
47.32 	if the person can show competent evidence of sufficient rehabilitation and present fitness to 
47.33 	perform the duties of the public employment sought or the occupation for which the license 
47.34 	is sought. SufficientCompetent evidence of sufficient rehabilitation may be established by 
47.35 	the production of the person's most recent certified copy of a United States Department 
48.1 	of Defense form DD-214 showing the person's honorable discharge, or separation under 
48.2 	honorable conditions, from the United States armed forces for military service rendered 
48.3 	following conviction for any crime that would otherwise disqualify the person from the 
48.4 	public employment sought or the occupation for which the license is sought, or:
48.5 	(1) a copy of the local, state, or federal release order; and
48.6 	(2) evidence showing that at least one year has elapsed since release from any local, 
48.7 	state, or federal correctional institution without subsequent conviction of a crime; and 
48.8 	evidence showing compliance with all terms and conditions of probation or parole; or
48.9 	(3) a copy of the relevant Department of Corrections discharge order or other 
48.10 	documents showing completion of probation or parole supervision.
48.11 	(b) In addition to the documentary evidence presented, the licensing or hiring 
48.12 	authority shall consider any evidence presented by the applicant regarding:
48.13 	(1) the nature and seriousness of the crime or crimes for which convicted;
48.14 	(2) all circumstances relative to the crime or crimes, including mitigating 
48.15 	circumstances or social conditions surrounding the commission of the crime or crimes;
48.16 	(3) the age of the person at the time the crime or crimes were committed;
48.17 	(4) the length of time elapsed since the crime or crimes were committed; and
48.18 	(5) all other competent evidence of rehabilitation and present fitness presented, 
48.19 	including, but not limited to, letters of reference by persons who have been in contact with 
48.20 	the applicant since the applicant's release from any local, state, or federal correctional 
48.21 	institution.
48.22 	(c) The certified copy of a person's United States Department of Defense form 
48.23 	DD-214 showing the person's honorable discharge or separation under honorable 
48.24 	conditions from the United States armed forces ceases to qualify as competent evidence of 
48.25 	sufficient rehabilitation for purposes of this section upon the person's conviction for any 
48.26 	gross misdemeanor or felony committed by the person subsequent to the effective date of 
48.27 	that honorable discharge or separation from military service.

48.28 	Sec. 10. [471.3457] VETERAN-OWNED SMALL BUSINESS CONTRACTS.
48.29 		Subdivision 1.Definitions. For the purposes of this section:
48.30 	(1) "local government" means a town or home rule charter or statutory city; and
48.31 	(2) "governing body" means the town board of supervisors or city council.
48.32 		Subd. 2.Authority. The governing body of a local government may implement a 
48.33 	program within its jurisdiction to provide a bid preference in awarding contracts as defined 
48.34 	in section 471.345, and in awarding contracts for services, to designated veteran-owned 
48.35 	small businesses, as provided in section 375.771.

49.1 	Sec. 11. Minnesota Statutes 2012, section 626.8517, is amended to read:
49.2 	626.8517 ELIGIBILITY FOR RECIPROCITY EXAMINATION BASED ON 
49.3 	RELEVANT MILITARY EXPERIENCE.
49.4 	(a) For purposes of this section:
49.5 	(1) "active service" has the meaning given in section 190.05, subdivision 5; and
49.6 	(2) "relevant military experience" means:
49.7 	(i) five years' active service experience in a military law enforcement occupational 
49.8 	specialty;
49.9 	(ii) three years' active service experience in a military law enforcement occupational 
49.10 	specialty, and completion of a two-year or more degree from a regionally accredited 
49.11 	postsecondary education institution; or
49.12 	(iii) five years' cumulative experience as a full-time peace officer in another state 
49.13 	combined with active service experience in a military law enforcement occupational 
49.14 	specialty.
49.15 	(b) A person who has relevant military experience and who is eligible to take the 
49.16 	reciprocity examination if the person has relevant military experience and:
49.17 	(1)  has been honorably discharged from military active service as evidenced by a the 
49.18 	most recent form DD-214 is eligible to take the reciprocity examination.; or
49.19 	(2) is currently in active service as evidenced by: 
49.20 	(i) active duty orders providing service time in military police specialty;
49.21 	(ii) a United States Department of Defense Manpower Data Center status report 
49.22 	pursuant to Service Members Civil Relief Act, active duty status report; or
49.23 	(iii) Military Personnel Center assignment information.
49.24 	(c) A person who passed the examination under paragraph (b), clause (2), shall 
49.25 	not be eligible to be licensed as a peace officer until honorably discharged as evidenced 
49.26 	by the most recent form DD-214.

49.27 	Sec. 12.  REPEALER.
 49.28 	Minnesota Statutes 2012, section 197.608, subdivision 2a, is repealed.

49.29 	ARTICLE 5
49.30 	REVENUE DEPARTMENT

49.31 	Section 1. Minnesota Statutes 2012, section 16A.82, is amended to read:
49.32 	16A.82 TECHNOLOGY LEASE-PURCHASE APPROPRIATION.
50.1 	The following amounts are appropriated from the general fund to the commissioner 
50.2 	to make payments under a lease-purchase agreement as defined in section 16A.81 for 
50.3 	replacement of the state's accounting and procurement systems, provided that the state 
50.4 	is not obligated to continue such appropriation of funds or to make lease payments 
50.5 	in any future fiscal year.

50.6		Fiscal year 2010
	$2,828,038
	
50.7		Fiscal year 2011
	$3,063,950
	
50.8		Fiscal year 2012
	$8,967,850
	
50.9		Fiscal year 2013
	$8,968,950
	
50.10		Fiscal year 2014
	$8,970,850
	
50.11		Fiscal year 2015
	$8,971,150
	
50.12		Fiscal year 2016
	$8,966,450
	
50.13		Fiscal year 2017
	$8,967,500
	
50.14		Fiscal year 2018
	$8,970,750
	
50.15		Fiscal year 2019
	$8,968,500
	
50.16 	Of these appropriations, up to $2,000 per year may be used to pay the annual trustee 
50.17 	fees for the lease-purchase agreements authorized in this section and section 270C.145. 
50.18 	Any unexpended portions of this appropriation cancel to the general fund at the close of 
50.19 	each biennium. This section expires June 30, 2019.

50.20 	Sec. 2. Minnesota Statutes 2012, section 65B.84, subdivision 1, is amended to read:
50.21 		Subdivision 1.Program described; commissioner's duties; appropriation. (a) 
50.22 	The commissioner of commerce shall:
50.23 	(1) develop and sponsor the implementation of statewide plans, programs, and 
50.24 	strategies to combat automobile theft, improve the administration of the automobile theft 
50.25 	laws, and provide a forum for identification of critical problems for those persons dealing 
50.26 	with automobile theft;
50.27 	(2) coordinate the development, adoption, and implementation of plans, programs, 
50.28 	and strategies relating to interagency and intergovernmental cooperation with respect 
50.29 	to automobile theft enforcement;
50.30 	(3) annually audit the plans and programs that have been funded in whole or in part 
50.31 	to evaluate the effectiveness of the plans and programs and withdraw funding should the 
50.32 	commissioner determine that a plan or program is ineffective or is no longer in need 
50.33 	of further financial support from the fund;
50.34 	(4) develop a plan of operation including:
50.35 	(i) an assessment of the scope of the problem of automobile theft, including areas 
50.36 	of the state where the problem is greatest;
51.1 	(ii) an analysis of various methods of combating the problem of automobile theft;
51.2 	(iii) a plan for providing financial support to combat automobile theft;
51.3 	(iv) a plan for eliminating car hijacking; and
51.4 	(v) an estimate of the funds required to implement the plan; and
51.5 	(5) distribute money, in consultation with the commissioner of public safety, 
51.6 	pursuant to subdivision 3 from the automobile theft prevention special revenue account 
51.7 	for automobile theft prevention activities, including:
51.8 	(i) paying the administrative costs of the program;
51.9 	(ii) providing financial support to the State Patrol and local law enforcement 
51.10 	agencies for automobile theft enforcement teams;
51.11 	(iii) providing financial support to state or local law enforcement agencies for 
51.12 	programs designed to reduce the incidence of automobile theft and for improved 
51.13 	equipment and techniques for responding to automobile thefts;
51.14 	(iv) providing financial support to local prosecutors for programs designed to reduce 
51.15 	the incidence of automobile theft;
51.16 	(v) providing financial support to judicial agencies for programs designed to reduce 
51.17 	the incidence of automobile theft;
51.18 	(vi) providing financial support for neighborhood or community organizations or 
51.19 	business organizations for programs designed to reduce the incidence of automobile 
51.20 	theft and to educate people about the common methods of automobile theft, the models 
51.21 	of automobiles most likely to be stolen, and the times and places automobile theft is 
51.22 	most likely to occur; and
51.23 	(vii) providing financial support for automobile theft educational and training 
51.24 	programs for state and local law enforcement officials, driver and vehicle services exam 
51.25 	and inspections staff, and members of the judiciary.
51.26 	(b) The commissioner may not spend in any fiscal year more than ten percent of the 
51.27 	money in the fund for the program's administrative and operating costs. The commissioner 
51.28 	is annually appropriated and must distribute the amount of the proceeds credited to 
51.29 	the automobile theft prevention special revenue account each year, less the transfer 
51.30 	of $1,300,000 each year to the general fund described in section 168A.40, subdivision 
51.31 	4 297I.11, subdivision 2.

51.32 	EFFECTIVE DATE. This section is effective for premiums collected after June 
51.33 	30, 2013.

51.34 	Sec. 3. Minnesota Statutes 2012, section 270C.69, subdivision 1, is amended to read:
52.1 		Subdivision 1.Notice and procedures. (a) The commissioner may, within five years 
52.2 	after the date of assessment of the tax, or if a lien has been filed under section 270C.63, 
52.3 	within the statutory period for enforcement of the lien, give notice to any employer 
52.4 	deriving income which has a taxable situs in this state regardless of whether the income is 
52.5 	exempt from taxation, that an employee of that employer is delinquent in a certain amount 
52.6 	with respect to any taxes, including penalties, interest, and costs. The commissioner can 
52.7 	proceed under this section only if the tax is uncontested or if the time for appeal of the tax 
52.8 	has expired. The commissioner shall not proceed under this section until the expiration of 
52.9 	30 days after mailing to the taxpayer, at the taxpayer's last known address, a written notice 
52.10 	of (1) the amount of taxes, interest, and penalties due from the taxpayer and demand for 
52.11 	their payment, and (2) the commissioner's intention to require additional withholding by 
52.12 	the taxpayer's employer pursuant to this section. The effect of the notice shall expire one 
52.13 	year after it has been mailed to the taxpayer provided that the notice may be renewed by 
52.14 	mailing a new notice which is in accordance with this section. The renewed notice shall 
52.15 	have the effect of reinstating the priority of the original claim. The notice to the taxpayer 
52.16 	shall be in substantially the same form as that provided in section 571.72. The notice 
52.17 	shall further inform the taxpayer of the wage exemptions contained in section 550.37, 
52.18 	subdivision 14. If no statement of exemption is received by the commissioner within 30 
52.19 	days from the mailing of the notice, the commissioner may proceed under this section. 
52.20 	The notice to the taxpayer's employer may be served by mail or by delivery by an agent of 
52.21 	the department and shall be in substantially the same form as provided in section 571.75. 
52.22 	Upon receipt of notice, the employer shall withhold from compensation due or to become 
52.23 	due to the employee, the total amount shown by the notice, subject to the provisions of 
52.24 	section 571.922. The employer shall continue to withhold each pay period until the notice 
52.25 	is released by the commissioner under section 270C.7109. Upon receipt of notice by the 
52.26 	employer, the claim of the state of Minnesota shall have priority over any subsequent 
52.27 	garnishments or wage assignments. The commissioner may arrange between the employer 
52.28 	and the employee for withholding a portion of the total amount due the employee each pay 
52.29 	period, until the total amount shown by the notice plus accrued interest has been withheld.
52.30 	(b) The "compensation due" any employee is defined in accordance with the 
52.31 	provisions of section 571.921. The maximum withholding allowed under this section for 
52.32 	any one pay period shall be decreased by any amounts payable pursuant to a garnishment 
52.33 	action with respect to which the employer was served prior to being served with the notice 
52.34 	of delinquency and any amounts covered by any irrevocable and previously effective 
52.35 	assignment of wages; the employer shall give notice to the commissioner of the amounts 
53.1 	and the facts relating to such assignments within ten days after the service of the notice of 
53.2 	delinquency on the form provided by the commissioner as noted in this section.
53.3 	(c) Within ten days after the expiration of such pay period, the employer shall remit 
53.4 	to the commissioner, on a form and in the manner prescribed by the commissioner, the 
53.5 	amount withheld during each pay period under this section. The employer must file all 
53.6 	wage levy disclosure forms and remit all wage levy payments by electronic means.

53.7 	EFFECTIVE DATE. This section is effective for wage levy disclosures or wage 
53.8 	levy payments filed or made after December 31, 2013.

53.9 	Sec. 4. Minnesota Statutes 2012, section 289A.20, subdivision 2, is amended to read:
53.10 		Subd. 2.Withholding from wages, entertainer withholding, withholding 
53.11 	from payments to out-of-state contractors, and withholding by partnerships, small 
53.12 	business corporations, trusts. (a) A tax required to be deducted and withheld during the 
53.13 	quarterly period must be paid on or before the last day of the month following the close of 
53.14 	the quarterly period, unless an earlier time for payment is provided. A tax required to be 
53.15 	deducted and withheld from compensation of an entertainer and from a payment to an 
53.16 	out-of-state contractor must be paid on or before the date the return for such tax must be 
53.17 	filed under section 289A.18, subdivision 2. Taxes required to be deducted and withheld 
53.18 	by partnerships, S corporations, and trusts must be paid on a quarterly basis as estimated 
53.19 	taxes under section 289A.25 for partnerships and trusts and under section 289A.26 for S 
53.20 	corporations.
53.21 	(b) An employer who, during the previous quarter, withheld more than $1,500 of 
53.22 	tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax 
53.23 	withheld under those sections with the commissioner within the time allowed to deposit 
53.24 	the employer's federal withheld employment taxes under Code of Federal Regulations, 
53.25 	title 26, section 31.6302-1, as amended through December 31, 2001, without regard to the 
53.26 	safe harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). 
53.27 	Taxpayers must submit a copy of their federal notice of deposit status to the commissioner 
53.28 	upon request by the commissioner.
53.29 	(c) The commissioner may prescribe by rule other return periods or deposit 
53.30 	requirements. In prescribing the reporting period, the commissioner may classify payors 
53.31 	according to the amount of their tax liability and may adopt an appropriate reporting 
53.32 	period for the class that the commissioner judges to be consistent with efficient tax 
53.33 	collection. In no event will the duration of the reporting period be more than one year.
53.34 	(d) If less than the correct amount of tax is paid to the commissioner, proper 
53.35 	adjustments with respect to both the tax and the amount to be deducted must be made, 
54.1 	without interest, in the manner and at the times the commissioner prescribes. If the 
54.2 	underpayment cannot be adjusted, the amount of the underpayment will be assessed and 
54.3 	collected in the manner and at the times the commissioner prescribes.
54.4 	(e) If the aggregate amount of the tax withheld is:
54.5 	(1) $20,000 or more in the fiscal year ending June 30, 2005; or
54.6 	(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years 
54.7 	thereafter,
54.8 	the employer must remit each required deposit for wages paid in the all subsequent 
54.9 	calendar year years by electronic means.
54.10 	(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph 
54.11 	(a), clause (2), who remits withholding deposits must remit all deposits by electronic 
54.12 	means as provided in paragraph (e), regardless of the aggregate amount of tax withheld 
54.13 	during a fiscal year for all of the employers.

54.14 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
54.15 	2013, and all fiscal years thereafter.

54.16 	Sec. 5. Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read:
54.17 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and 
54.18 	payable to the commissioner monthly on or before the 20th day of the month following 
54.19 	the month in which the taxable event occurred, or following another reporting period 
54.20 	as the commissioner prescribes or as allowed under section 289A.18, subdivision 4, 
54.21 	paragraph (f) or (g), except that:
54.22 	(1) use taxes due on an annual use tax return as provided under section 289A.11, 
54.23 	subdivision 1, are payable by April 15 following the close of the calendar year; and
54.24 	(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 
54.25 	or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes 
54.26 	imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the 
54.27 	commissioner monthly in the following manner:
54.28 	(i) On or before the 14th day of the month following the month in which the taxable 
54.29 	event occurred, the vendor must remit to the commissioner 90 percent of the estimated 
54.30 	liability for the month in which the taxable event occurred.
54.31 	(ii) On or before the 20th day of the month in which the taxable event occurs, the 
54.32 	vendor must remit to the commissioner a prepayment for the month in which the taxable 
54.33 	event occurs equal to 67 percent of the liability for the previous month.
55.1 	(iii) On or before the 20th day of the month following the month in which the taxable 
55.2 	event occurred, the vendor must pay any additional amount of tax not previously remitted 
55.3 	under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than 
55.4 	the vendor's liability for the month in which the taxable event occurred, the vendor may 
55.5 	take a credit against the next month's liability in a manner prescribed by the commissioner.
55.6 	(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to 
55.7 	continue to make payments in the same manner, as long as the vendor continues having a 
55.8 	liability of $120,000 or more during the most recent fiscal year ending June 30.
55.9 	(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required 
55.10 	payment in the first month that the vendor is required to make a payment under either item 
55.11 	(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make 
55.12 	subsequent monthly payments in the manner provided in item (ii).
55.13 	(vi) For vendors making an accelerated payment under item (ii), for the first month 
55.14 	that the vendor is required to make the accelerated payment, on the 20th of that month, the 
55.15 	vendor will pay 100 percent of the liability for the previous month and a prepayment for 
55.16 	the first month equal to 67 percent of the liability for the previous month.
55.17 	(b) Notwithstanding paragraph (a), a vendor having a liability of $120,000 or more 
55.18 	during a fiscal year ending June 30 must remit the June liability for the next year in the 
55.19 	following manner:
55.20 	(1) Two business days before June 30 of the year, the vendor must remit 90 percent 
55.21 	of the estimated June liability to the commissioner.
55.22 	(2) On or before August 20 of the year, the vendor must pay any additional amount 
55.23 	of tax not remitted in June.
55.24 	(c) A vendor having a liability of:
55.25 	(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, 
55.26 	2009 2013, and fiscal years thereafter, must remit by electronic means all liabilities on 
55.27 	returns due for periods beginning in the all subsequent calendar year years on or before 
55.28 	the 20th day of the month following the month in which the taxable event occurred, or 
55.29 	on or before the 20th day of the month following the month in which the sale is reported 
55.30 	under section 289A.18, subdivision 4; or
55.31 	(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years 
55.32 	thereafter, must remit by electronic means all liabilities in the manner provided in 
55.33 	paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar 
55.34 	year, except for 90 percent of the estimated June liability, which is due two business days 
55.35 	before June 30. The remaining amount of the June liability is due on August 20.
56.1 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 
56.2 	religious beliefs from paying electronically shall be allowed to remit the payment by mail. 
56.3 	The filer must notify the commissioner of revenue of the intent to pay by mail before 
56.4 	doing so on a form prescribed by the commissioner. No extra fee may be charged to a 
56.5 	person making payment by mail under this paragraph. The payment must be postmarked 
56.6 	at least two business days before the due date for making the payment in order to be 
56.7 	considered paid on a timely basis.
56.8 	(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed 
56.9 	under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the 
56.10 	chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and 
56.11 	paid with the chapter 297A taxes, then the payment of all the liabilities on the return must 
56.12 	be accelerated as provided in this subdivision.
56.13 	(f) At the start of the first calendar quarter at least 90 days after the cash flow account 
56.14 	established in section 16A.152, subdivision 1, and the budget reserve account established in 
56.15 	section 16A.152, subdivision 1a, reach the amounts listed in section 16A.152, subdivision 
56.16 	2, paragraph (a), the remittance of the accelerated payments required under paragraph (a), 
56.17 	clause (2), must be suspended. The commissioner of management and budget shall notify 
56.18 	the commissioner of revenue when the accounts have reached the required amounts. 
56.19 	Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of 
56.20 	$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the 
56.21 	taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day 
56.22 	of the month following the month in which the taxable event occurred. Payments of tax 
56.23 	liabilities for taxable events occurring in June under paragraph (b) are not changed.

56.24 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
56.25 	2013, and all fiscal years thereafter.

56.26 	Sec. 6. Minnesota Statutes 2012, section 289A.26, subdivision 2a, is amended to read:
56.27 		Subd. 2a.Electronic payments. If the aggregate amount of estimated tax payments 
56.28 	made is:
56.29 	(1) $20,000 or more in the fiscal year ending June 30, 2005; or
56.30 	(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years 
56.31 	thereafter,
56.32 	all estimated tax payments in the all subsequent calendar year years must be paid by 
56.33 	electronic means.

57.1 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
57.2 	2013, and all fiscal years thereafter.

57.3 	Sec. 7. Minnesota Statutes 2012, section 295.55, subdivision 4, is amended to read:
57.4 		Subd. 4.Electronic payments. A taxpayer with an aggregate tax liability of:
57.5 	(1) $20,000 or more in the fiscal year ending June 30, 2005; or
57.6 	(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years 
57.7 	thereafter,
57.8 	must remit all liabilities by electronic means in the all subsequent calendar year years.

57.9 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
57.10 	2013, and all fiscal years thereafter.

57.11 	Sec. 8. Minnesota Statutes 2012, section 297F.09, subdivision 7, is amended to read:
57.12 		Subd. 7.Electronic payment. A cigarette or tobacco products distributor having a 
57.13 	liability of $10,000 or more during a fiscal year ending June 30 must remit all liabilities in 
57.14 	the all subsequent calendar year years by electronic means.

57.15 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
57.16 	2013, and all fiscal years thereafter.

57.17 	Sec. 9. Minnesota Statutes 2012, section 297G.09, subdivision 6, is amended to read:
57.18 		Subd. 6.Electronic payments. A licensed brewer, importer, or wholesaler having 
57.19 	an excise tax liability of $10,000 or more during a fiscal year ending June 30 must remit 
57.20 	all excise tax liabilities in the all subsequent calendar year years by electronic means.

57.21 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
57.22 	2013, and all fiscal years thereafter.

57.23 	Sec. 10. [297I.11] AUTOMOBILE THEFT PREVENTION SURCHARGE.
57.24 		Subdivision 1.Surcharge. Each insurer engaged in the writing of policies of 
57.25 	automobile insurance shall collect a surcharge, at the rate of 50 cents per vehicle 
57.26 	for every six months of coverage, on each policy of automobile insurance providing 
57.27 	comprehensive insurance coverage issued or renewed in this state. The surcharge may not 
57.28 	be considered premium for any purpose, including the computation of premium tax or 
57.29 	agents' commissions. The amount of the surcharge must be separately stated on either a 
57.30 	billing or policy declaration sent to an insured. Insurers shall remit the revenue derived 
58.1 	from this surcharge to the commissioner of revenue for purposes of the automobile theft 
58.2 	prevention program described in section 65B.84. For purposes of this subdivision, "policy 
58.3 	of automobile insurance" has the meaning given it in section 65B.14, covering only the 
58.4 	following types of vehicles as defined in section 168.002:
58.5 	(1) a passenger automobile;
58.6 	(2) a pickup truck;
58.7 	(3) a van but not commuter vans as defined in section 168.126; or
58.8 	(4) a motorcycle,
58.9 	except that no vehicle with a gross vehicle weight in excess of 10,000 pounds is included 
58.10 	within this definition.
58.11 		Subd. 2.Automobile theft prevention account. A special revenue account in 
58.12 	the state treasury shall be credited with the proceeds of the surcharge imposed under 
58.13 	subdivision 1. Of the revenue in the account, $1,300,000 each year must be transferred to 
58.14 	the general fund. Revenues in excess of $1,300,000 each year may be used only for the 
58.15 	automobile theft prevention program described in section 65B.84.
58.16 		Subd. 3.Collection and administration. The commissioner shall collect and 
58.17 	administer the surcharge imposed by this section in the same manner as the taxes imposed 
58.18 	by this chapter.

58.19 	EFFECTIVE DATE. This section is effective for premiums collected after June 
58.20 	30, 2013.

58.21 	Sec. 11. Minnesota Statutes 2012, section 297I.30, is amended by adding a subdivision 
58.22 	to read:
58.23 		Subd. 10.Automobile theft prevention surcharge. On or before May 1, August 
58.24 	1, November 1, and February 1 of each year, every insurer required to pay the surcharge 
58.25 	under section 297I.11 shall file a return with the commissioner for the preceding 
58.26 	three-month period ending March 31, June 30, September 30, and December 31, in the 
58.27 	form prescribed by the commissioner.

58.28 	EFFECTIVE DATE. This section is effective for premiums collected after June 
58.29 	30, 2013.

58.30 	Sec. 12. Minnesota Statutes 2012, section 297I.35, subdivision 2, is amended to read:
58.31 		Subd. 2.Electronic payments. If the aggregate amount of tax and surcharges due 
58.32 	under this chapter during a fiscal year ending June 30 is equal to or exceeds $10,000, or 
58.33 	if the taxpayer is required to make payment of any other tax to the commissioner by 
59.1 	electronic means, then all tax and surcharge payments in the all subsequent calendar year
59.2 	 years must be paid by electronic means.

59.3 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
59.4 	2013, and all fiscal years thereafter.

59.5 	Sec. 13. Minnesota Statutes 2012, section 473.843, subdivision 3, is amended to read:
59.6 		Subd. 3.Payment of fee. On or before the 20th day of each month each operator 
59.7 	shall pay the fee due under this section for the previous month, using a form provided 
59.8 	by the commissioner of revenue.
59.9 	An operator having a fee of $10,000 or more during a fiscal year ending June 30 
59.10 	must pay all fees in the all subsequent calendar year years by electronic means.

59.11 	EFFECTIVE DATE. This section is effective for the fiscal year ending June 30, 
59.12 	2013, and all fiscal years thereafter.

59.13 	Sec. 14. DATA SECURITY AUDIT.
 59.14 	The legislative auditor is requested, as resources permit, to conduct a data security 
59.15 	audit under Minnesota Statutes, section 3.971, subdivision 6a, of the Department of 
59.16 	Revenue's use of debit cards as payment for tax refunds.

59.17 	Sec. 15.  REPEALER.
 59.18 	(a) Minnesota Statutes 2012, section 168A.40, subdivisions 3 and 4, are repealed 
59.19 	effective for premiums collected after June 30, 2013.
59.20 	(b) Minnesota Statutes 2012, section 270C.145, is repealed the day following final 
59.21 	enactment.

59.22 	ARTICLE 6
59.23 	COMPENSATION COUNCIL

59.24 	Section 1. Minnesota Statutes 2012, section 3.855, subdivision 3, is amended to read:
59.25 		Subd. 3.Other salaries and compensation plans. The commission shall also:
59.26 	(1) review and approve, reject, or modify a plan for compensation and terms and 
59.27 	conditions of employment prepared and submitted by the commissioner of management 
59.28 	and budget under section 43A.18, subdivision 2, covering all state employees who are 
59.29 	not represented by an exclusive bargaining representative and whose compensation is not 
59.30 	provided for by chapter 43A or other law;
60.1 	(2) review and approve, reject, or modify a plan for total compensation and terms 
60.2 	and conditions of employment for employees in positions identified as being managerial 
60.3 	under section 43A.18, subdivision 3, whose salaries and benefits are not otherwise 
60.4 	provided for in law or other plans established under chapter 43A;
60.5 	(3) review and approve, reject, or modify recommendations for salaries submitted 
60.6 	by the governor or other an appointing authority other than the governor under section 
60.7 	15A.0815, subdivision 5, covering agency head positions listed in section 15A.0815;
60.8 	(4) review and approve, reject, or modify recommendations for salaries salary 
60.9 	range of officials of higher education systems under section 15A.081, subdivisions 7b 
60.10 	and subdivision 7c;
60.11 	(5) review and approve, reject, or modify plans for compensation, terms, and 
60.12 	conditions of employment proposed under section 43A.18, subdivisions 3a, 3b, and 4; and
60.13 	(6) review and approve, reject, or modify the plan for compensation, terms, and 
60.14 	conditions of employment of classified employees in the office of the legislative auditor 
60.15 	under section 3.971, subdivision 2.

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

60.17 	Sec. 2. Minnesota Statutes 2012, section 15A.0815, subdivision 1, is amended to read:
60.18 		Subdivision 1.Salary limits. The governor or other appropriate appointing 
60.19 	authority shall set the salary rates for positions listed in this section within the salary limits 
60.20 	listed in subdivisions 2 to 4,. If the appointing authority is not the governor, the appointing 
60.21 	authority's action is subject to approval of the Legislative Coordinating Commission and the 
60.22 	legislature as provided by subdivision 5 and sections 3.855 and 15A.081, subdivision 7b.

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

60.24 	Sec. 3. Minnesota Statutes 2012, section 15A.0815, subdivision 2, is amended to read:
60.25 		Subd. 2.Group I salary limits. The salaries for positions in this subdivision may 
60.26 	not exceed 95 percent of the salary of the governor: The salary for a position listed in this 
60.27 	subdivision shall not exceed 133 percent of the salary of the governor. This limit must 
60.28 	be adjusted annually on January 1. The new limit must equal the limit for the prior year 
60.29 	increased by the percentage increase, if any, in the Consumer Price Index for all urban 
60.30 	consumers from October of the second prior year to October of the immediately prior year. 
60.31 	The commissioner of management and budget must publish the limit on the department's 
60.32 	Web site. This subdivision applies to the following positions:
60.33 	Commissioner of administration;
61.1 	Commissioner of agriculture;
61.2 	Commissioner of education;
61.3 	Commissioner of commerce;
61.4 	Commissioner of corrections;
61.5 	Commissioner of health;
61.6 	Executive director, Minnesota Office of Higher Education;
61.7 	Commissioner, Housing Finance Agency;
61.8 	Commissioner of human rights;
61.9 	Commissioner of human services;
61.10 	Commissioner of labor and industry;
61.11 	Commissioner of management and budget;
61.12 	Commissioner of natural resources;
61.13 	Director of Office of Strategic and Long-Range Planning;
61.14 	Commissioner, Pollution Control Agency;
61.15 	Executive director, Public Employees Retirement Association;
61.16 	Commissioner of public safety;
61.17 	Commissioner of revenue;
61.18 	Executive director, State Retirement System;
61.19 	Executive director, Teachers Retirement Association;
61.20 	Commissioner of employment and economic development;
61.21 	Commissioner of transportation; and
61.22 	Commissioner of veterans affairs.

61.23 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2013.

61.24 	Sec. 4. Minnesota Statutes 2012, section 15A.0815, subdivision 3, is amended to read:
61.25 		Subd. 3.Group II salary limits. The salaries for positions in this subdivision may 
61.26 	not exceed 85 percent of the salary of the governor. The salary for a position listed in this 
61.27 	subdivision shall not exceed 120 percent of the salary of the governor. This limit must 
61.28 	be adjusted annually on January 1. The new limit must equal the limit for the prior year 
61.29 	increased by the percentage increase, if any, in the Consumer Price Index for all urban 
61.30 	consumers from October of the second prior year to October of the immediately prior year. 
61.31 	The commissioner of management and budget must publish the limit on the department's 
61.32 	Web site. This subdivision applies to the following positions:
61.33 	Executive director of Gambling Control Board;
61.34 	Commissioner, Iron Range Resources and Rehabilitation Board;
61.35 	Commissioner, Bureau of Mediation Services;
62.1 	Ombudsman for Mental Health and Developmental Disabilities;
62.2 	Chair, Metropolitan Council;
62.3 	School trust lands director;
62.4 	Executive director of pari-mutuel racing; and
62.5 	Commissioner, Public Utilities Commission.

62.6 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2013.

62.7 	Sec. 5. Minnesota Statutes 2012, section 15A.0815, subdivision 5, is amended to read:
62.8 		Subd. 5.Appointing authorities to recommend certain salaries. (a) When 
62.9 	the governor is the appointing authority, the governor, or other appropriate appointing 
62.10 	authority, may submit to the Legislative Coordinating Commission recommendations for
62.11 	 must establish salaries within the salary limits for the positions listed in subdivisions 
62.12 	2 to 4. An appointing authority may also propose additions or deletions of positions 
62.13 	from those listed. Before establishing a salary, the governor must consult with the 
62.14 	commissioner of management and budget concerning the salary. In establishing the salary, 
62.15 	the governor shall consider the criteria established in section 43A.18, subdivision 8, and 
62.16 	the performance of individual incumbents. The performance evaluation must include a 
62.17 	review of an incumbent's progress toward attainment of affirmative action goals. The 
62.18 	governor shall establish an objective system for quantifying knowledge, abilities, duties, 
62.19 	responsibilities, and accountabilities, and in determining recommendations rate each 
62.20 	position by this system.
62.21 	(b) An appointing authority other than the governor may submit to the Legislative 
62.22 	Coordinating Commission recommendations for salaries within the salary limits for the 
62.23 	positions listed in subdivisions 2 to 4.
62.24 	(b) Before submitting the recommendations, the appointing authority shall consult 
62.25 	with the commissioner of management and budget concerning the recommendations.
62.26 	(c) In making recommendations, the appointing authority shall consider the 
62.27 	criteria established in section 43A.18, subdivision 8, and the performance of individual 
62.28 	incumbents. The performance evaluation must include a review of an incumbent's progress 
62.29 	toward attainment of affirmative action goals. The appointing authority shall establish 
62.30 	an objective system for quantifying knowledge, abilities, duties, responsibilities, and 
62.31 	accountabilities, and in determining recommendations, rate each position by this system.
62.32 	(d) Before the appointing authority's recommended salaries take effect, the 
62.33 	recommendations must be reviewed and approved, rejected, or modified by the Legislative 
62.34 	Coordinating Commission and the legislature under section 3.855, subdivisions 2 and 
62.35 	3. If, when the legislature is not in session, the commission fails to reject or modify 
63.1 	salary recommendations of the governor within 30 calendar days of their receipt, the 
63.2 	recommendations are deemed to be approved.
63.3 	(c) The governor or other appointing authority may propose additions or deletions of 
63.4 	positions from those listed in subdivisions 2 to 4.
63.5 	(e) (d) The governor or other appointing authority shall set the initial salary of a 
63.6 	head of a new agency or a chair of a new metropolitan board or commission whose salary 
63.7 	is not specifically prescribed by law after consultation with the commissioner, whose 
63.8 	recommendation is advisory only. The amount of the new salary must be comparable to the 
63.9 	salary of an agency head or commission chair having similar duties and responsibilities.
63.10 	(f) (e) The salary of a newly appointed head of an agency or chair of a metropolitan 
63.11 	agency listed in subdivisions 2 to 4 who is appointed by someone other than the governor, 
63.12 	may be increased or decreased by the appointing authority from the salary previously 
63.13 	set for that position within 30 days of the new appointment after consultation with 
63.14 	the commissioner. If the appointing authority increases a salary under this paragraph, 
63.15 	the appointing authority shall submit the new salary to the Legislative Coordinating 
63.16 	Commission and the full legislature for approval, modification, or rejection under section 
63.17 	3.855, subdivisions 2 and 3. If, when the legislature is not in session, the commission fails 
63.18 	to reject or modify salary recommendations of the governor within 30 calendar days of 
63.19 	their receipt, the recommendations are deemed to be approved.

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

63.21 	Sec. 6. Minnesota Statutes 2012, section 15A.082, subdivision 1, is amended to read:
63.22 		Subdivision 1.Creation. A Compensation Council is created each even-numbered
63.23 	 odd-numbered year to assist the legislature in establishing the compensation of 
63.24 	constitutional officers, members of the legislature, justices of the Supreme Court, judges 
63.25 	of the Court of Appeals and district court, and the heads of state and metropolitan agencies 
63.26 	included in section 15A.0815.

63.27 	Sec. 7. Minnesota Statutes 2012, section 15A.082, subdivision 2, is amended to read:
63.28 		Subd. 2.Membership. The Compensation Council consists of 16 members: two 
63.29 	members of the house of representatives appointed by the speaker of the house, who are 
63.30 	not members of the legislature; two members of the senate appointed by the majority 
63.31 	leader of the senate, who are not members of the legislature; one member of the house 
63.32 	of representatives appointed by the minority leader of the house of representatives, who 
63.33 	is not a member of the legislature; one member of the senate appointed by the minority 
63.34 	leader of the senate, who is not a member of the legislature; two nonjudges appointed by 
64.1 	the chief justice of the Supreme Court; and one member from each congressional district 
64.2 	appointed by the governor, of whom no more than four may belong to the same political 
64.3 	party. Appointments must be made by October 1 after the first Monday in January and 
64.4 	before January 15. The compensation and removal of members appointed by the governor 
64.5 	or the chief justice shall be as provided in section 15.059, subdivisions 3 and 4. The 
64.6 	Legislative Coordinating Commission shall provide the council with administrative and 
64.7 	support services.

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

64.9 	Sec. 8. Minnesota Statutes 2012, section 15A.082, subdivision 3, is amended to read:
64.10 		Subd. 3.Submission of recommendations. (a) By May 1 March 15 in each 
64.11 	odd-numbered year, the Compensation Council shall submit to the speaker of the house 
64.12 	and the president of the senate salary recommendations for constitutional officers, 
64.13 	legislators, justices of the Supreme Court, and judges of the Court of Appeals and district 
64.14 	court. The recommended salary for each office must take effect on the first Monday in 
64.15 	January of the next odd-numbered year, with no more than one adjustment, to take effect 
64.16 	on January 1 of the year after that. The salary recommendations for legislators, judges, and 
64.17 	constitutional officers take effect if an appropriation of money to pay the recommended 
64.18 	salaries is enacted after the recommendations are submitted and before their effective date. 
64.19 	Recommendations may be expressly modified or rejected. The salary recommendations 
64.20 	for legislators are subject to additional terms that may be adopted according to section 
64.21 	3.099, subdivisions 1 and 3.
64.22 	(b) The council shall also submit to the speaker of the house and the president of 
64.23 	the senate recommendations for the salary ranges of the heads of state and metropolitan 
64.24 	agencies, to be effective retroactively from January 1 of that year if enacted into law. The 
64.25 	recommendations shall include the appropriate group in section 15A.0815 to which each 
64.26 	agency head should be assigned and the appropriate limitation on the maximum range of 
64.27 	the salaries of the agency heads in each group, expressed as a percentage of the salary of 
64.28 	the governor.

64.29 	Sec. 9. Minnesota Statutes 2012, section 43A.17, subdivision 1, is amended to read:
64.30 		Subdivision 1.Salary limits. As used in subdivisions 1 to 9, "salary" means hourly, 
64.31 	monthly, or annual rate of pay including any lump-sum payments and cost-of-living 
64.32 	adjustment increases but excluding payments due to overtime worked, shift or equipment 
64.33 	differentials, work out of class as required by collective bargaining agreements or plans 
64.34 	established under section 43A.18, and back pay on reallocation or other payments related 
65.1 	to the hours or conditions under which work is performed rather than to the salary range 
65.2 	or rate to which a class is assigned. For presidents of state universities, "salary" does 
65.3 	not include a housing allowance provided through a compensation plan approved under 
65.4 	section 43A.18, subdivision 3a.
65.5 	The salary, as established in section 15A.0815, of the head of a state agency in the 
65.6 	executive branch is the upper limit on the salaries of individual employees in the agency. 
65.7 	However, if an agency head is assigned a salary that is lower than the current salary of 
65.8 	another agency employee, the employee retains the salary, but may not receive an increase 
65.9 	in salary as long as the salary is above that of the agency head. The commissioner may 
65.10 	grant exemptions from these upper limits as provided in subdivisions 3 and 4.

65.11 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2013.

65.12 	Sec. 10. Minnesota Statutes 2012, section 43A.17, subdivision 3, is amended to read:
65.13 		Subd. 3.Unusual employment situations. (a) Upon the request of the appointing 
65.14 	authority, and when the commissioner determines that changes in employment situations 
65.15 	create difficulties in attracting or retaining employees, the commissioner may approve an 
65.16 	unusual employment situation increase to advance an employee within the compensation 
65.17 	plan salary range.
65.18 	(b) If the commissioner determines that a position requires special expertise 
65.19 	necessitating a higher salary to attract or retain qualified persons, the commissioner may 
65.20 	grant an exemption not to exceed 120 percent of the salary of the head of the agency or the 
65.21 	maximum rate established for the position, whichever is less.
65.22 	(c) The following conditions apply to a request under paragraph (a) to advance an 
65.23 	employee within a compensation plan or under paragraph (b) to exceed the salary of the 
65.24 	agency head salary range:
65.25 	(1) the appointing authority making the request must submit a detailed written 
65.26 	statement for each position contained in the request, specifying the changes in employment 
65.27 	situations that create difficulties in attracting or retaining an employee for the position;
65.28 	(2) the commissioner shall review each proposal giving due consideration to salary 
65.29 	rates paid to other employees in the same class and agency and, if other conditions in 
65.30 	this paragraph are met, may approve any request that in the commissioner's judgment is 
65.31 	in the best interest of the state;
65.32 	(3) the action must be consistent with applicable provisions of collective bargaining 
65.33 	agreements or plans adopted under section 43A.18;
65.34 	(4) each increase or exemption must be separately documented for each employee or 
65.35 	position and may not be applied to groups of employees; and
66.1 	(5) the commissioner shall report the granting of a request to the chair of the 
66.2 	Legislative Coordinating Commission within three working days.

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

66.4 	Sec. 11. COMPENSATION STUDY.
 66.5 	The commissioner of management and budget must contract with an independent 
66.6 	consultant to conduct a comprehensive market analysis of compensation for managerial 
66.7 	positions in the executive branch in order to better align compensation for these positions 
66.8 	with comparable positions in the private sector and with other relevant public sector 
66.9 	employers. The analysis should evaluate total compensation, including insurance, 
66.10 	retirement, and performance pay.

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

66.12 	Sec. 12. CONSTITUTIONAL OFFICERS SALARIES.
 66.13 	The salary of the governor is increased by three percent effective January 1, 2015, 
66.14 	and by three percent on January 1, 2016. The salaries of the other constitutional officers 
66.15 	shall be adjusted to retain their proportional relationship as of January 1, 2013, to the 
66.16 	salary of the governor.

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

66.18 	Sec. 13. REPEALER.
 66.19 	Minnesota Statutes 2012, section 43A.17, subdivision 4, is repealed.